Zhejiang Supor Co., Ltd.
2024 Semiannual Report
August 2024
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND
DEFINITIONSThe Board of Directors and the Board of Supervisors of Zhejiang SuporCo., Ltd. (hereinafter referred to as the "Company") and all its directors,supervisors and senior executives warrant that this semiannual report is true,accurate and complete, and does not contain any fictitious statements,misleading information or significant omissions; all directors, supervisors andsenior executives of the Company undertake, separately and jointly, allresponsibilities in relation to the truth, accuracy and completeness hereof.
Mr. Thierry de LA TOUR D'ARTAISE, person in charge of the Company,and Mr. Xu Bo, person in charge of accounting and person in charge ofaccounting department (accountant in charge), hereby confirm that thefinancial report enclosed in this semiannual report is true, accurate andcomplete.
All directors have attended the Board Meeting of semiannual report inperson.It is of great uncertainty, for whether it can be realized or not depends onmultiple factors, including market change and effort of management team.Please be careful of investment risks.For details of the risk factors faced by the Company, please refer to Part X"Risks Faced by the Company and Countermeasures" of Section III"DISCUSSION AND ANALYSIS OF THE MANAGEMENT".
The Company plans not to distribute cash dividend, issue bonus shares, ortransfer reserve to common shares.
Table of Contents
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND DEFINITIONS ...... 2
SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICATORS ...... 6
SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEMENT ...... 9
SECTION IV CORPORATION GOVERNANCE ...... 21
SECTION V SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES ...... 24
SECTION VI SIGNIFICANT EVENTS ...... 28
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS ...... 36
SECTION VIII INFORMATION ON PREFERRED SHARE ...... 43
SECTION IX BONDS ...... 44
SECTION X FINANCIAL REPORT ...... 45
CATALOG OF REFERENCE DOCUMENTS
I. 2024 Semiannual Report of the Company and Abstract with signature of legal representative;II. Accounting statements with signature of legal representative, person in charge of accounting and person in charge of accountingdepartment and seal of the Company;III. Originals of all documents and announcements published in newspapers designated by CSRC during the reporting period.Reference documents above shall be prepared by Securities Department of the Company.
Definitions
| Items to be Defined | means | Definitions |
| SZSE | means | Shenzhen Stock Exchange |
| CSRC | means | China Securities Regulatory Commission |
| CSDCC | means | Shenzhen Branch of China Securities Depository and Clearing Corporation Limited |
| The Company/this Company/Supor | means | Zhejiang Supor Co., Ltd. |
| SEB Internationale | means | SEB INTERNATIONALE S.A.S |
| Groupe SEB | means | SEB S.A. |
| Zhejiang Supor Electrical | means | Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd. |
| Shaoxing Supor | means | Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. |
| Supor Vietnam | means | Supor (Vietnam) Co., Ltd. |
| Wuhan Recycling | means | Wuhan Supor Recycling Co., Ltd. |
| Wuhan Supor Cookware | means | Wuhan Supor Cookware Co., Ltd. |
| Wuhan Supor Pressure Cooker | means | Wuhan Supor Pressure Cooker Co., Ltd. |
| Omegna | means | Hangzhou Omegna Commercial Trade Co., Ltd. |
| Shanghai Marketing | means | Shanghai Supor Cookware Marketing Co., Ltd. |
| P&R Products | means | Zhejiang Supor Plastic & Rubber Co., Ltd. |
| Yuhuan Sales Company | means | Yuhuan Supor Cookware Marketing Co., Ltd. |
| SEADA | means | SOUTH EAST ASIA DOMESTIC APPLIANCES PTE. LTD. |
| AFS | means | AFS VIETNAM MANAGEMENT CO.LTD. |
| Shanghai WMF | means | Shanghai WMF Enterprise Development Co., Ltd. |
| Zhejiang WMF | means | Zhejiang WMF Housewares Co., Ltd. |
| Shaoxing Supor Housewares | means | Zhejiang Shaoxing Supor Housewares Co., Ltd. |
| Supor Large Kitchen Appliance | means | Zhejiang Supor Large Kitchen Appliance Co., Ltd. |
| Supor Water Heater | means | Zhejiang Supor Water Heater Co., Ltd. |
| GSIM or Indonesian Company | means | PT Groupe SEB Indonesia MSD |
| Hainan Supor E-commerce Company | means | Hainan Supor E-Commerce Co., Ltd. |
| Hainan Tefal Trade Company | means | Hainan Tefal Trade Co., Ltd. |
| 2021 Equity Incentive Plan | means | 2021 Restricted Stock Incentive Plan (Draft) |
| 2022 Equity Incentive Plan | means | 2022 Restricted Stock Incentive Plan (Draft) |
| 2023 Equity Incentive Plan | means | 2023 Stock Option Incentive Plan (Draft) |
| Performance Incentive Fund | means | Administration Measures for the Performance Incentive Fund |
SECTION II COMPANY FILE AND MAJOR FINANCIAL
INDICATORS
I. Company Profile
| Short Form of the Stock: | Supor | Stock Code | 002032 |
| Short Form of the Original Stock (if any) | None | ||
| Stock Exchange for Stock Listing | Shenzhen Stock Exchange | ||
| Chinese Name of the Company | 浙江苏泊尔股份有限公司 | ||
| Short Form of Chinese Name of the Company (if any) | 苏泊尔 | ||
| English Name of the Company (if any) | ZHEJIANG SUPOR CO., LTD. | ||
| Short Form of English Name of the Company (if any) | SUPOR | ||
| Legal Representative | Thierry de LA TOUR D'ARTAISE | ||
II. Contact Person and Contact Information
| Board Secretary | Representative of Securities Affairs | |
| Name | Ye Jide | Fang Lin |
| Address | Securities Department at 23F of Supor Building, No.1772 Jianghui Road, New & High Tech Development Zone, Hangzhou, China | Securities Department at 23F of Supor Building, No.1772 Jianghui Road, New & High Tech Development Zone, Hangzhou, China |
| Tel. | 0571-86858778 | 0571-86858778 |
| Fax | 0571-86858678 | 0571-86858678 |
| yjd@supor.com | flin@supor.com |
III. Other Conditions
1. Way of contact
Whether the Company registered address, office address, post code, Company website, email address, etc. have changed within thereporting period
□ Applicable ? Not-applicable
The Company registered address, office address, post code, Company website and email address have not changed during thereporting period. Please refer to the 2023 Annual Report.
2. Place for information disclosure and archiving
Whether information disclosure and designated location have changed within the reporting period
□ Applicable ? Not-applicable
The securities exchange website and media name along with their respective URLs where the Company disclosed its semiannualreport, as well as the location of the Company's semiannual report archives, remain unchanged during the reporting period. Forspecific details, please refer to the 2023 Annual Report.
3. Other relevant information
Change situation of other relevant data within the reporting period
□ Applicable ? Not-applicable
IV. Major Accounting Data and Financial IndicatorsDoes the Company need to retroactively adjust or restate previous year's accounting data?
□ Yes ? No
| This reporting period | Same period of last year | Increase/decrease of this reporting period from the same period of the last year | |
| Operating income (RMB) | 10,964,777,968.45 | 9,982,616,440.73 | 9.84% |
| Net profit attributable to shareholders of listed company (RMB) | 940,593,117.65 | 880,618,279.78 | 6.81% |
| Net profit attributable to shareholders of listed company with non-recurring profit or loss deducted (RMB) | 922,655,960.65 | 857,420,949.15 | 7.61% |
| Net cash flows from operating activities (RMB) | 548,524,464.81 | 555,040,511.12 | -1.17% |
| Basic earnings per share (RMB/share) | 1.181 | 1.097 | 7.66% |
| Diluted earnings per share (RMB/share) | 1.181 | 1.095 | 7.85% |
| Weighted average return on net assets | 15.45% | 13.29% | Increase by 2.16 percentage points |
| End of this reporting period | End of last year | Increase/decrease of the end of this reporting period from the end of last year | |
| Total assets (RMB) | 11,102,810,216.79 | 13,106,703,607.00 | -15.29% |
| Net asset attributable to shareholders of listed company (RMB) | 5,106,521,012.48 | 6,345,333,020.11 | -19.52% |
V. Financial Data Difference on Principle of Domestic and Oversea Accounting
1. Net profit and net assets discrepancies in financial reports disclosed separately under InternationalAccounting Standards and Chinese Accounting Standards
□ Applicable ? Not-applicable
No net profit and net assets discrepancies in financial reports disclosed separately under International Accounting Standards andChinese Accounting Standards existed during the reporting period.
2. Net profit and net assets discrepancies in financial reports disclosed separately under OverseasAccounting Standards and Chinese Accounting Standards
□ Applicable ? Not-applicable
No net profit and net assets discrepancies in financial reports disclosed separately under Overseas Accounting Standards and
Chinese Accounting Standards existed during the reporting period.VI. Non-recurring Profit or Loss Items and Amount? Applicable □ Not-applicable
Unit: RMB
| Item | Amount | Notes |
| Profit and loss on disposal of non-current assets (including the write-off of provision for asset impairment) | -1,405,000.23 | |
| Government subsidies included into the current profits and losses (except those that are closely related to the Company's normal business operations, comply with national policies and regulations, available according to determined standards, and have a continuous impact on the profit and loss of the Company) | 5,841,677.89 | |
| Except the effective hedging business related to the normal operation of the Company, profits and losses from fair value changes of held-for-trading financial assets and financial liabilities by non-financial enterprises and profits and losses obtained from disposal of financial assets and financial liabilities | 17,206,786.02 | |
| Other non-operating incomes or expenditures except for the foregoing items | 1,366,434.45 | |
| Minus: influenced amount of income tax | 5,052,136.70 | |
| Influenced amount of minority shareholders' equities (after tax) | 20,604.43 | |
| Total | 17,937,157.00 |
Other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses:
□ Applicable ? Not-applicable
The Company does not have other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses.Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of theInformation of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□ Applicable ? Not-applicable
The Company does not have the description of defining non-recurring profits or losses items listed in the ExplanatoryAnnouncement No.1 on Disclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring Profitor Loss as recurring profits and losses.
SECTION III DISCUSSION AND ANALYSIS OF THE
MANAGEMENTI. Major Businesses of the Company during the Reporting Period(I) Main businesses of the Company
As China's famous cookware and small domestic appliance R&D manufacturing company and leading brand, the Company isalso the first listed company in China's cookware industry. Established in 1994, the headquarters of the Company locates inHangzhou and owning six R&D and manufacture bases located in Yuhuan City, Hangzhou City, Shaoxing City (Binhai New Areaand Keqiao District) in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam.
Supor's main businesses include open fire cookware and kitchen utensil, small domestic appliances, large kitchen appliancesand H&PC appliances.
(1) Open fire cookware and kitchen utensils mainly include wok, pressure cooker, frying pan, sauce pan, steamer, ceramicslow cooker, kettle, knife, spatula, thermal pot, thermos & flask, kitchen gadgets, crisper, etc.;
(2) The small domestic appliances mainly include electric rice cooker, electric pressure cooker, induction hob, soymilkmaker, electric kettle, juicer, slow cooker, electric steamer, electric hotpot, food processor, baked machine, air fryer, coffeemachine, etc.;
(3) The large kitchen appliances mainly include range hood, gas stove, disinfection cabinet, water purifier, embeddedsteaming oven, integrated stove, water heater, etc.;
(4) The H&PC appliances mainly include air purifier, garment steamers, vacuum cleaner, floor washer and electric iron,electric heater, air-circulating fans, etc.
The Company's cookware and electrical products have been exported to more than 50 countries and regions such as Japan,European and American countries mainly through Groupe SEB.
(II) Industry development and market position of the Company
In the first half of 2024, Consumer demand showed signs of stratification. On the one hand, consumer demands for high-quality,high-value products maintained an upward trend; on the other hand, more consumers were willing to purchase most cost-effectiveproducts. Facing a complex market environment and more rational consumer demand, the Company has achieved a better-than-industry performance of domestic sales through continuous innovation and strong channel competitive advantages. The domesticsales has increased slightly compared to the same period last year, and the online and offline market share of its core productcategories has continued to rise.
In the field of open fire cookware, live streaming e-commerce and interest-based e-commerce platforms like TikTok andPinduoduo continued to experience rapid growth, while traditional e-commerce platforms saw a slight decline. Overall, onlineretail scale grew slightly, while offline channels were still under pressure. According to monitoring data from AVC, Supor's onlinemarket share for cookware continued to grow in the first half of 2024, leading the second brand by more than four times. Itsoverall cumulative offline market share was close to 50%, firmly maintaining the industry's top one position. In terms of productcategory performance, traditional necessity products such as pressure cookers, casseroles, milk pots, and frying pans performedsteadily, with cookware made of materials like 316L stainless steel, titanium, and iron being more favored by consumers.In the field of small domestic appliance, the domestic consumer market faced intensified competition. Supor forged aheadunder pressure, achieving a remarkable performance with the top market share in traditional e-commerce and TikTok'scomprehensive market. According to AVC's cross-channel monitoring data for the first half of 2024, Supor's sales performance inthe small domestic appliance market (including categories: electric rice cookers, induction hobs, electric pressure cookers, soymilk
maker, high-speed blenders, mixers, juicers, electric kettles, electric steamers and slow cookers, health kettles, electric grills,tabletop single-function ovens, and air fryers) exceeded the industry level, with increased online and offline market shares, rankingfirst in the industry. In terms of product category performance, necessity categories like electric rice cookers remained stable,while categories related to health concepts, such as electric steamers, slow cookers, health kettles, and soymilk makers, continuedto grow.(III) Operating condition during the reporting period
1. Domestic sales during the reporting period
(1) Product strategy
During the reporting period, Supor continued the "consumer-centric" strategy guiding its innovation and development of newproducts, and deeply explored the needs of segmented users under different scenarios by means of internet data, so as to constantprovide smart and ingenious product solutions that meet diversified consumer needs and offer considerate, comprehensiveconsumer experiences.
In the open fire cookware business, the Company's main promotion this year was the titanium no coating &nonstick iron wok,introducing the concept of "non-stick, non-rusting, and no maintenance required," ushering in a new era of "nonstick iron wok".The Company continued to implement a large single-product strategy in the drinkware business, further increasing the marketshare and sales scale of the water bottle category. For example, the anytime sharing series thermos bottle ranked among the topsellers in the first half year and was repeatedly included in the sales rankings of traditional e-commerce platforms like Tmall andJD.com.
In the small domestic appliance business, the Company further solidified its leading position in core necessity categories suchas electric rice cookers, electric pressure cookers, and electric kettles. The core product, the far-infrared rice cooker, has sold overone million units since its launch. Simultaneously, the Company accelerated its layout in small-capacity, multi-functional, andsilver-hair product lines, launching products like small-capacity far-infrared rice cookers and upgraded portable coffee makers.Additionally, the Company actively entered new sub-categories such as desktop water purifiers and ice makers, while acceleratingthe layout of AIOT intelligent products and further promoting the implementation of the "content + service" platform strategy. TheCompany's industry-first intelligent food solution for smart culinary scenarios, launched this year, won the AWE 2024 Appliance& Electronics World Expo (AWE) "Intelligent Technology Award."
In the H&PC appliance business, Supor continued to focus on the cleaning appliances category, with its market share forvacuum cleaners rising to the first among domestic brands and second in the industry. The Company maintained its industry-leading position in the garment steamer category. According to AVC monitoring data, Supor's online market share for garmentsteamers ranked second in the industry. Simultaneously, the Company continued developing high-speed hair dryers, electricshavers, and other personal care products, as well as seasonal products like air-circulating fans, actively creating new sales growthcurves.
In the large kitchen appliances business, Supor remained focused on its main product categories, rapidly developing andnurturing emerging categories, anchoring the existing replacement market, and continuously seeking breakthroughs. TheCompany's shatter-proof gas stove with "extreme fire" continued to lead the industry, maintaining the top position in online single-product sales rankings. According to AVC monitoring data, Supor's online market share for gas stoves remained first in theindustry in the first half of 2024.
(2) Channel strategy
With the accelerated integration of online and offline markets, Supor remained "consumer-centric" and kept optimizing itslayout of channels based on the changes in consumers' purchase path, thereby meeting the needs of various consumers through amulti-channel and multi-mode layout. The Company insisted on winning consumers' trust with high-quality products, and winningdistributors' and retailers' support with excellent services.
In the first half of 2024, traditional e-commerce channels experienced a decline, while interest-based e-commerce growthslowed down, leading to an overall slowdown in online retail growth and intensified competition. As a leading brand in the
industry, Supor's online sales still maintained growth momentum in the first half year. For traditional e-commerce platforms, theCompany continuously optimized its product and store matrices, consistently expanding the sales proportion of mid-to-high-endproducts, increasing the market share of above products further. In interest-based e-commerce platforms, the Company combinedin-house live streaming with influencer live streaming on platforms like TikTok to continuously improve the efficiency ofexpenses and gradually increase sales contributions from TikTok's store, ensuring profitability in interest-based e-commerceplatforms. Simultaneously, the Company continued to optimize its store matrix on the Pinduoduo platform, improving productcategories and introducing designated best cost-effective products to drive sales growth.In the first half of 2024, the offline channel still faced significant challenges. As an industry leader, Supor furtherconsolidated its advantages in the offline retail channel, continuously expanding lower-tier channels, accelerating store penetration,and effectively improving sales velocity. In the O2O channels like JD stores in third- and fourth-tier markets, the Companypromoted the implementation of refined distributor operations management, further enhancing store operational capabilities andstore productivity, leading to a reasonable optimization of the sales structure. In the instant retail channels of first- and second-tiermarkets, the Company further upgraded its cooperation with platforms like Meituan Flash Sale and JD.com Home, and Ele.me,injecting new vitality into the offline store ecosystem, further bringing products closer to consumers, and integrating consumptionscenarios with household scenarios, thereby achieving rapid sales growth. In the B2B business, the Company launched pointsredemption programs with various large and medium-sized enterprises such as banks and airlines, providing incremental growthfor offline channels. Simultaneously, Supor continuously strengthened cooperation with regional real estate developers andrenovation companies, exploring the pre-furnished market.
(3) Brand building
In the first half of 2024, the Company strengthened user-centric brand building, solidified its user base, enhanced userexperience and loyalty, and empowered the long-term healthy development of the brand. The Company established acomprehensive user asset system, strengthened the integration of public and private domains, fully utilized multi-channel usertouchpoints, and improved user loyalty and activity. The Company continuously provided users with a unique product and serviceoffering through its official WeChat mini-program, integrating lifestyle inspiration, product usage tips, immersive shopping, after-sales service, and member activities. Through refined segmentation and personalized services, the Company improved userlifecycle management and continuously enhanced brand experience. Furthermore, the Company fully tapped into the value of theVOC (Voice of Customer) system and established a comprehensive user NPS (Net Promoter Score) system to gain in-depthinsights into user evaluations and suggestions, continuously improving products and services. Coinciding with the Company's 30
th
anniversary this year, we conducted a series of user interaction activities, such as the "My First Supor Product" story collection,further enhancing users' brand recognition and sense of belonging.
2. Export sales during the reporting period
In the first half of 2024, as the demands in European and American markets rebounded from inventory de-stocking phase,orders from the Company's major export customers increased significantly compared to the same period last year, leading to rapidgrowth in export operating income.II. Core Competitiveness Analysis(I) Superior product innovation capacitySupor has consistently embraced the philosophy of "people-oriented, design-driven innovation" for many years. TheCompany emphasizes technological leadership, green design, and collaborative innovation both internally and externally. As aresult, Supor has introduced a broader range of healthy, intelligent, and serial products tailored to meet the diverse needs andconsumption scenarios of varying consumer demographics. Under the leadership of the headquarters’ Innovation Center, Suporhas enhanced the collaboration of its R&D resources, both internal and external. Internally, the Innovation Center continuallyrefines its innovation incentive mechanisms, promoting ongoing innovation across business units. Externally, the Company forges
frequent collaborations with research institutions and universities to bring in new technologies and materials while strengtheninginnovative synergies with Groupe SEB to introduce an expanded array of products and technologies, thus enriching Supor’sproduct portfolio.In the realm of product design, Supor integrates industrial design, user experience, and consumer trend analysis to driveproduct innovation, which subsequently enhances the visual appeal, form, and user experience of its offerings by addressingconsumer pain points and delivering superior product experiences.
(II) Steady distributor networkSupor has a stable distribution team, maintaining long-term, favorable partnerships with distributors and operational entities.In the online channels, Supor is advancing a direct sales, distribution, and “one-basket” stocking model, collaborating withdistributors and operators to establish a comprehensive e-commerce store matrix that ensures consumers have favorable onlineshopping experiences. Meanwhile, in the offline channels, Supor has developed a vast network of sales terminals and servicepoints, entering major mainstream supermarkets in first- and second-tier markets, while achieving considerable penetration ofO2O channels in third- and fourth-tier markets to facilitate consumer access to our products.(III) Strong R&D and manufacturing capabilitiesSupor has built up six R&D production bases, respectively in Yuhuan City, Hangzhou City, Shaoxing City (Binhai NewArea and Keqiao District), Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam. In particular, theannual production scale of Wuhan Base and Shaoxing Base ranked the top in the industry. For years, the Company has focused onenhancing industrial efficiency, and its robust R&D and manufacturing capabilities play a pivotal role in ensuring thecompetitiveness of Supor’s products.(IV) Synergistic effect of integration with SEBGroupe SEB, a leader in cookware and small domestic appliances with a history surpassing 160 years, has been strategicallypartnered with Supor since 2006. The synergy of this partnership yields stable annual export orders for Supor, continuallyenhancing its overall sales volume and manufacturing capabilities. Moreover, Supor has reinforced its collaboration with theGroupe SEB across various areas such as production, R&D, information technology, and management, providing comprehensivesupport for sustainable development.
(V) Advantages of multi-brand and multi-category operationsFor multi-brand operation, in addition to Supor brand, the Company also introduced a lot of high-end brands under GroupeSEB, such as WMF, LAGOSTINA, KRUPS, and TEFAL so as to fully cover the high-end brands in small domestic appliances andkitchen cookware fields. In pursuing multi-category operations, Supor is actively expanding its portfolio beyond traditionalcategories like open fire cookware and small domestic appliances, venturing into new segments such as large kitchen appliances,home care appliances, and personal care electronics. The establishment of a multi-brand and multi-category presence in thedomestic market has granted Supor a significant competitive edge, positioning it to evolve into a comprehensive household brandenterprise.
III. Main Business Analysis
Overview
During the reporting period, the Company achieved operating income of RMB10,964,777,968.45, a year-on-year increase of
9.84%. For domestic business, with the complex market environment and more rational consumer demands, the Companyoutperformed the industry through continuous innovation and strong channel competitive advantages, achieved a slight increase insales compared to the same period last year, and gained market shares for core categories on both online and offline channels. Forexport business, the Company's key export customer was undergoing the de-stocking stage during the same period last year, butthe sales to the Company's key export customer increased significantly as the demand rebounded for the European and Americanmarkets in the current period, so that the export sales has achieved rapid growth. The Company realized a net profit attributable tothe shareholders of listed company of RMB940,593,117.65, representing a year-on-year increase of 6.81%. The basic earnings pershare was RMB1.181 representing a year-on-year increase of 7.66%. Among which, the realized revenue from the main business
of cookware was RMB2,942,755,534.25, a year-on-year increase of 16.95%; the realized revenue from the main business ofelectric appliance was RMB7,874,467,595.73, a year-on-year increase of 7.24%; the realized revenue from the main business ofdomestic sales was RMB7,432,782,168.71, a year-on-year increase of 0.15%; the realized revenue from the main business ofexport sales was RMB3,400,896,802.76, a year-on-year increase of 38.78%.Year-on-year alternation conditions of main financial data
Unit: RMB
| This reporting period | Same period of last year | Increase/decrease YoY (%) | Variation reason | |
| Operating income | 10,964,777,968.45 | 9,982,616,440.73 | 9.84% | |
| Operating cost | 8,289,510,974.07 | 7,444,829,256.71 | 11.35% | |
| Sales expenses | 1,138,911,660.13 | 1,098,400,634.74 | 3.69% | |
| Administrative expenses | 194,416,893.38 | 189,032,788.40 | 2.85% | |
| Financial expenses | -57,464,983.30 | -42,251,541.59 | -36.01% | Mainly due to the fluctuation of the RMB exchange rate against the US dollar during the reporting period, which led to an increase in exchange gains compared to the same period last year. |
| Income tax expenses | 231,061,024.52 | 218,895,998.85 | 5.56% | |
| R&D investment | 204,504,710.21 | 174,383,802.42 | 17.27% | |
| Net cash flows from operating activities | 548,524,464.81 | 555,040,511.12 | -1.17% | |
| Net cash flows from investing activities | 1,910,642,639.60 | 1,087,172,418.94 | 75.74% | Mainly due to the decrease in cash outflows from investing activities during the reporting period, specifically the reduction in cash expenditures for investments in term deposit with maturities of over three months and financial products. |
| Net cash flows from financing activities | -2,200,649,143.14 | -2,702,496,787.61 | 18.57% | |
| Net increase in cash and cash equivalents | 262,818,756.57 | -1,051,713,681.08 | 124.99% | Mainly due to the decrease in cash outflow from investing activities. |
The profit structure or profit source within the reporting period has been significantly changed.
□ Applicable ? Not-applicable
The profit structure or profit source within the reporting period has no change.Operating income constitution
Unit: RMB
| This reporting period | Same period of last year | Increase/decrease YoY (%) | |||
| Amount | Percentage to total operating income | Amount | Percentage to total operating income | ||
| Total operating income | 10,964,777,968.45 | 100% | 9,982,616,440.73 | 100% | 9.84% |
| By industry | |||||
| Cookware | 2,942,755,534.25 | 26.84% | 2,516,239,088.69 | 25.21% | 16.95% |
| Electric appliance | 7,874,467,595.73 | 71.81% | 7,342,682,261.73 | 73.55% | 7.24% |
| Others | 147,554,838.47 | 1.35% | 123,695,090.31 | 1.24% | 19.29% |
| By products | |||||
| Cookware and utensil | 2,942,755,534.25 | 26.84% | 2,516,239,088.69 | 25.21% | 16.95% |
| Electrical cooking | 4,643,226,317.56 | 42.35% | 4,495,040,148.58 | 45.03% | 3.30% |
| Food processor appliance | 1,900,634,481.61 | 17.33% | 1,691,379,401.26 | 16.94% | 12.37% |
| Other household electric appliances | 1,478,161,635.03 | 13.48% | 1,279,957,802.20 | 12.82% | 15.49% |
| By areas | |||||
| Domestic sales | 7,509,322,088.47 | 68.49% | 7,501,764,475.40 | 75.15% | 0.10% |
| Export sales | 3,455,455,879.98 | 31.51% | 2,480,851,965.33 | 24.85% | 39.29% |
Remarks: "Others" by industry, "Other household electric appliances" by product, and area-based operating income all includeother business incomes, the same below.The industry, product, or region accounts for more than 10% of the Company's operating incomes or operating profits.? Applicable □ Not-applicable
Unit: RMB
| Operating income | Operating cost | Gross margin | Increase/ decrease YoY (%) for operating income | Increase/ decrease YoY (%) for operating cost | Increase/ decrease YoY (%) for gross margin | |
| By industry | ||||||
| Cookware | 2,942,755,534.25 | 2,148,540,624.99 | 26.99% | 16.95% | 17.84% | -0.55% |
| Electric appliance | 7,874,467,595.73 | 6,016,365,660.90 | 23.60% | 7.24% | 9.02% | -1.24% |
| By products | ||||||
| Cookware and utensil | 2,942,755,534.25 | 2,148,540,624.99 | 26.99% | 16.95% | 17.84% | -0.55% |
| Electrical cooking | 4,643,226,317.56 | 3,562,292,592.43 | 23.28% | 3.30% | 5.33% | -1.48% |
| Food processor appliance | 1,900,634,481.61 | 1,513,298,778.54 | 20.38% | 12.37% | 13.19% | -0.57% |
| Other household electric appliances | 1,478,161,635.03 | 1,065,378,978.11 | 27.93% | 15.49% | 18.06% | -1.57% |
| By areas | ||||||
| Domestic sales | 7,509,322,088.47 | 5,404,596,263.65 | 28.03% | 0.10% | 0.62% | -0.37% |
| Export sales | 3,455,455,879.98 | 2,884,914,710.42 | 16.51% | 39.29% | 39.14% | 0.08% |
If the statistical caliber of the Company's operation business data is adjusted during the reporting period, the main business data forthe latest period after the statistical caliber is adjusted.
□ Applicable ? Not-applicable
IV. Analysis on Non-main Business
□ Applicable ? Not-applicable
V. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: RMB
| End of this reporting period | End of previous year | Increase/ decrease in proportion | Descriptions of major changes | |||
| Amount | Percentage to total assets | Amount | Percentage to total assets | |||
| Monetary capital | 1,994,094,960.25 | 17.96% | 3,548,277,442.44 | 27.07% | -9.11% | Mainly due to the dividend expenditure in cash outflow of the Company's financing activities during the reporting period. |
| Accounts receivable | 3,279,868,209.80 | 29.54% | 2,858,247,356.03 | 21.81% | 7.73% | Mainly due to the increase in accounts receivable of export business at the end of the reporting period. |
| Inventories | 1,991,855,309.66 | 17.94% | 2,262,683,387.31 | 17.26% | 0.68% | No significant change during the reporting period. |
| Long-term equity investment | 60,958,242.27 | 0.55% | 61,678,984.35 | 0.47% | 0.08% | No significant change during the reporting period. |
| Fixed assets | 1,188,793,243.58 | 10.71% | 1,243,210,689.64 | 9.49% | 1.22% | No significant change during the reporting period. |
| Construction in progress | 69,151,667.36 | 0.62% | 26,862,380.61 | 0.20% | 0.42% | No significant change during the reporting period. |
| Right-of-use assets | 202,864,225.37 | 1.83% | 223,503,573.14 | 1.71% | 0.12% | No significant change during the reporting period. |
| Short-term borrowings | 199,065,687.57 | 1.79% | 199,741,167.36 | 1.52% | 0.27% | No significant change during the reporting period. |
| Contract liabilities | 219,210,138.94 | 1.97% | 862,706,076.18 | 6.58% | -4.61% | Mainly due to the decrease in advance payments from some distributors by subsidiaries during the reporting period. |
| Lease obligation | 156,977,849.58 | 1.41% | 177,281,125.36 | 1.35% | 0.06% | No significant change during the reporting period. |
| Transactional financial assets | 180,164,631.01 | 1.62% | 351,137,787.54 | 2.68% | -1.06% | Mainly due to the decrease in investments in principal guaranteed floating-income financial products linked to interest rates at the end of the reporting period. |
| Receivables financing | 193,637,531.38 | 1.74% | 363,532,765.35 | 2.77% | -1.03% | Mainly due to the decrease in the amount of the bank acceptance bills of the subsidiaries at the end of the reporting period. |
| Non-current assets due within one year | 485,691,958.90 | 4.37% | 285,783,958.92 | 2.18% | 2.19% | Mainly due to the increase in negotiable certificates of deposit due within one year at the end of the reporting period. |
| Other debt investment | 229,436,821.90 | 2.07% | 665,522,383.56 | 5.08% | -3.01% | Mainly due to the decrease in negotiable certificates of deposit due above one year at the end of the reporting period. |
2. Major foreign assets conditions
□ Applicable ? Not-applicable
3. Assets and liabilities measured at the fair value
? Applicable □ Not-applicable
Unit: RMB
| Item | Opening balance | Profit and loss from fair value changes in the current period | Accumulated fair value changes included into equity | Impairment loss of the current period | Amount of purchasing of the current period | Amount of selling of the current period | Other changes | Closing balance |
| Financial assets | ||||||||
| 1. Transactional financial assets (excluding derivative financial assets) | 351,137,787.54 | 2,860,671.44 | 180,000,000.00 | 353,833,827.97 | 180,164,631.01 | |||
| 2. Receivables financing | 363,532,765.35 | -169,895,233.97 | 193,637,531.38 | |||||
| 3. Other debt investments | 951,306,342.48 | 81,038,191.78 | 331,561,868.04 | 14,346,114.58 | 715,128,780.80 | |||
| Total | 1,665,976,895.37 | 2,860,671.44 | 261,038,191.78 | 685,395,696.01 | -155,549,119.39 | 1,088,930,943.19 | ||
| Financial liabilities | 0.00 | 0.00 | ||||||
Content of other changesReceivables financing: As the demand of daily fund management, Supor will discount or transfer an endorsed bill, the businessmode of related bank acceptance bill including not only collect contractual cash flow but sales as the target, so reclass the bankacceptance bill as financial assets measured at the fair value with their changes included into other comprehensive incomes.Other debt investment: The business mode of negotiable certificates of deposit including collecting contractual cash flow andselling the negotiable certificates of deposit as the target, so reclass the negotiable certificates of deposit as financial assetsmeasured at the fair value with their changes included into other comprehensive incomes. Interest revenue is accrued according tothe actual interest rate during the expected duration.Are there any major changes about the valuation attribute of Company's main assets during the reporting period?
□ Yes ? No
4. Restrictions of assets and rights by the end of reporting period
Please see No.18. "Assets with title or use right restrictions" of Part VII "Notes to Items of Consolidated Financial Statements" ofSECTION X "FINANCIAL REPORT" for details.VI. Investment Situation Analysis
1. General condition
□ Applicable ? Not-applicable
2. Significant equity investment to be acquired during the reporting period
□ Applicable ? Not-applicable
3. Significant non-equity investment to be handled during the reporting period
□ Applicable ? Not-applicable
4. Investments in Financial Assets
(1) Conditions of the securities investment
□ Applicable ? Not-applicable
The Company involves no securities investment during the reporting period.
(2) Derivative investment
? Applicable □ Not-applicable
1) Hedging derivative investment during the reporting period
? Applicable □ Not-applicable
Unit: RMB 10,000
| Derivative investment type | Initial investment amount | Opening balance | Profit and loss from fair value changes in the current period | Accumulated fair value changes included into equity | Purchase amount during the reporting period | Sales amount during the reporting period | Closing amount | Proportion of investment amount in the Company's net assets at the end of the reporting period |
| Foreign exchange derivatives | 17,602.90 | 17,602.90 | -84.48 | 0 | 36,435.40 | 40,791.87 | 13,246.43 | 2.59% |
| Total | 17,602.90 | 17,602.90 | -84.48 | 0 | 36,435.40 | 40,791.87 | 13,246.43 | 2.59% |
| Explanation on detailed accounting policies and specific accounting principles of hedging business and whether they have been significantly changed during the reporting period compared with the previous reporting period | The Company recognizes, measures, and presents in accordance with Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 24 - Hedging, and Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments. There are no significant changes compared to the previous reporting period. | |||||||
| Explanation on realized gains and losses during the reporting period | During the reporting period, the Company conducted derivative transactions and fair value hedging in accordance with the variety and duration determined by the Board of Directors. During the reporting period, the amount included in the current profit and loss was RMB-844,800 yuan, and the amount included in equity was 0 yuan. The amount of profit or loss is entirely derived from the net fair value change formed by the forward settlement of foreign exchange and the hedged item. During the reporting period, the Company did not engage in foreign exchange swap business, with no profit or loss or equity impact. | |||||||
| Explanation on hedging effect | The value of hedging tools of the Company changed inversely to that of hedged foreign exchange accounts receivable and payable, effectively achieving the risk management objectives. | |||||||
| During the reporting period, the Company conducted assessment on the fluctuation of the value of foreign exchange accounts receivable and payable, and signed forward exchange contracts with banks in the same currency. Such hedging tool was one of those approved by the Board of Directors. The execution complied with the internal control requirements and operated within the approved quota to ensure that the hedging tools match the hedged items in the scale, term, and currency. | |
| Capital source of derivative investment | Self-owned capital |
| Risk analysis and control measure explanation for derivative holding during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operation risk and law risk) | In order to hedge the foreign exchange risk in operating activities, reduce the impact of exchange rate fluctuations, and give full play to the hedging function of foreign exchange derivative transaction, the Company implemented foreign exchange derivative transaction business consistent with its business scale, term, and currency. (I) Risks of conducting foreign exchange derivatives transactions 1. Market risks: market risks, such as losses resulted from changes in the price of foreign exchange derivatives due to the fluctuated underlying interest rate, exchange rate or other market price, may arise. 2. Internal control risks: considering the specialty and complexity of foreign exchange derivative transaction business, inadequate internal control mechanisms may lead to risks. 3. Liquidity risks: risk of failure to complete transactions due to lack of market liquidity. 4. Performance risks: foreign exchange derivatives business faces the risk of default due to failed contract fulfillment when the contract expires. 5. Legal risks: changes in relevant laws or violations of the relevant legal system by counterparty, resulting the contract cannot be executed properly, may cause losses to the Company. (II) Risk response measures 1. Clarify the principles of foreign exchange derivative transaction: foreign exchange derivative transaction is based on the hedging principle to avoid risks from exchange rate fluctuations to the greatest extent, and based on market conditions, operation strategies shall be adjusted in time to improve hedging effects. 2. System construction: the Company has established the Management Measures for Foreign Exchange Derivative Transactions, in which the scope of authorization, approval procedures, key operation points, risk management and information disclosure concerning foreign exchange derivative transactions are well defined, so that the conduct and risks of foreign exchange derivative transactions can be effectively regulated. 3. Product selection: prior to any FX derivative transactions, it's necessary to select an FX derivative that suits the Company's business context best, and is highly liquid and risk through a comparative analysis of various counterparties and products, before conducting business. The Company used forward instruments for general hedge and swap contracts for rolling hedge. 4. Counterparty management: be prudent when selecting counterparties for foreign exchange derivatives business. The Company only conducts foreign exchange derivative transaction business with large commercial banks and other foreign exchange organization with legal qualifications, thus avoiding potential default and legal risks. 5. Management by specially-assigned persons: a special working group, set up by the Company's management representatives, Fund Department, Financial Sharing Center, Audit Department, Securities Department and other departments concerned, is responsible for the risk assessment, operation, recording and supervision of foreign exchange derivatives transactions. The working group is supposed to decide on emergency mitigations in case of any significant changes in the market. |
| Changes in market prices or fair values of invested derivatives during the reporting period, specific methods used for analysis of the fair value of derivatives and the setting of related assumptions and parameters | The delivered foreign exchange derivatives were recorded as the profit and loss with instruments by the Company. Changes in the fair value of undelivered foreign exchange derivatives were evaluated by the comparison between the exchange rate of the derivative contract and the corresponding forward foreign exchange quotation provided by the contracting bank at the end of the period. |
| Litigation-related situation (if applicable) | Not-applicable |
| The disclosure date of approval announcement | March 30, 2024 |
by the Board of Directorsof derivative investment(if any)
2) Speculation derivative investment during the reporting period
□ Applicable ? Not-applicable
During the reporting period, there was no speculative investment on derivatives.
5. Application of capital raised
□ Applicable ? Not-applicable
No capital raised was used in reporting period
VII. Sales for Major Assets and Equity
1. Sales for major assets
□ Applicable ? Not-applicable
The Company did not sell major assets till the end of the reporting period.
2. Sales for major equities
□ Applicable ? Not-applicable
VIII. Analysis for Main Holding Companies and Joint Stock Companies? Applicable □ Not-applicableStatus of main subsidiaries and joint stock companies with influence on the Company's net profit exceeding 10%
Unit: RMB
| Company name | Company type | Revenue from main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
| Wuhan Supor Cookware Co., Ltd. | Subsidiary | Cookware | 91,160,000 | 1,084,663,282.12 | 423,940,619.10 | 1,586,769,381.20 | 45,565,473.35 | 33,985,659.29 |
| Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd. | Subsidiary | Electrical products | 133,697,100 | 1,321,469,813.87 | 585,425,678.68 | 2,041,117,834.22 | 82,760,805.41 | 62,118,833.49 |
| Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. | Subsidiary | Small domestic appliance, kitchen appliance | 610,000,000 | 3,429,342,938.07 | 2,501,354,095.63 | 3,456,059,410.82 | 545,753,009.04 | 464,088,780.09 |
Subsidiary obtaining and disposal details during the reporting period
□ Applicable ? Not-applicable
IX. Structural Subject under the Company's Control
□ Applicable ? Not-applicable
X. Risks Faced by the Company and Countermeasures
1. Risk from macroeconomic fluctuation
As of the first half of 2024, the domestic kitchen cookware and small domestic appliance sector experienced a challengingretail landscape. The domestic appliances market has entered from the purely incremental era to the era of incremental andinventory coexistence, the market shows a tendency of polarization. Looking ahead to the second half of 2024, Supor will adhereto its strategic framework by stimulating demand for traditional product renewal through upgrades in product structure whileuncovering new growth avenues through novel categories and consumption scenarios. Furthermore, a new round of domesticappliance ‘trade-in’ policy issued by the government is expected to boost the replacement consumption in the market.With regards to exports, a rebound in demand is anticipated following the inventory de-stocking in European and Americanmarkets, which suggests that Supor’s export business will likely continue its growth trajectory in the second half year. TheCompany aims to collaborate with export customers to foster new product development, enhance operational efficiencies, andreduce costs, thereby bolstering the competitiveness of its international trade operations.
2. Risk from price change of production elements
In the first half of 2024, key essential raw materials for cookware and small domestic appliances - such as aluminum, copper,stainless steel, and plastics - have experienced relatively stable price movements, which is beneficial for production costs amongindustry players. Supor will continue to implement lean cost effectiveness programs aimed at enhancing internal labor productivity,thereby improving the cost competitiveness of its domestic and export sales. Besides the Company is actively boosting theautomation of production line, improving the per capita labor output, and reduce the impact caused by rise in labor cost.
3. Risk of intensifying market competitiveness
As market demand for cookware and domestic appliances polarized, high-end brands are intensifying their efforts in lower-tier channels, adjusting their product pricing strategies to capture increased market share. Concurrently, the intensifyingcompetition between platforms is expected to amplify sales pressures. Moving forward, a robust competition centered on price-performance ratios is anticipated.
Supor will remain committed to its product innovation-centric strategy, continually enhancing its innovation capabilities tolaunch high-value, high-margin products aimed at capturing leading positions in sales and market share within the mid to highpricing segments. At the same time, the Company will selectively increase marketing towards online traffic-driving products whileleveraging its multi-brand and multi-category strengths. Continued investment in marketing resources will help to gain incrementalsales and boost market share, and the Company is also targeting investments in lower third- and fourth-tier markets to reach abroader consumer group. Supor will focus on strengthening its core categories and accelerating its expansion into emergingcategories and niche markets, ensuring stable and sustained growth moving forward.
4. Product export and exchange loss caused by exchange rate fluctuation
The Company's export business with its major export customer, Groupe SEB, has been settled in RMB, with low exchangerate risk.
XI. Implementation of the Action Plan for "Double Improvement of Quality and Return"Whether the Company has disclosed an action plan for "double improvement of quality and return" or not.
□ Yes ? No
SECTION IV CORPORATION GOVERNANCEI. General Meeting of Shareholders and Interim General Meeting of Shareholders Heldduring the Reporting Period
1. General meeting of shareholders in the reporting period
| Session | Meeting type | Investors participation ratio | Convening date | Date of disclosure | Meeting resolution |
| The First Interim General Meeting of Shareholders 2024 | Interim General Meeting of Shareholders | 7.71% | January 10, 2024 | January 11, 2024 | See Announcement on Resolutions of the First Interim General Meeting of Shareholders 2024 (Announcement No.: 2024-002) disclosed on http://www.cninfo.com.cn for details |
| Annual General Meeting of Shareholders for 2023 Fiscal Year | Annual General Meeting of Shareholders | 7.10% | April 25, 2024 | April 26, 2024 | See Announcement on Resolutions of the Annual General Meeting of Shareholders for 2023 Fiscal Year (Announcement No.: 2024-026) disclosed on http://www.cninfo.com.cn for details |
| The Second Interim General Meeting of Shareholders 2024 | Interim General Meeting of Shareholders | 6.76% | May 13, 2024 | May 14, 2024 | See Announcement on Resolutions of the Second Interim General Meeting of Shareholders 2024 (Announcement No.: 2024-032) disclosed on http://www.cninfo.com.cn for details |
2. Interim General Meeting of Shareholders held at the request of preferred shareholders with restoredvoting right
□ Applicable ? Not-applicable
II. Change of Directors, Supervisors and Senior Executives
□ Applicable ? Not-applicable
The Company directors, supervisors and senior executives did not change within the reporting period. As for details, please see2023 Annual Report.
III. Profit Distribution and Conversion from Capital Reserves to Share Capital during theReporting Period
□ Applicable ? Not-applicable
The Company planned not to distribute cash dividend, issue bonus shares, or convert capital reserves to share capital in the semi-annual period.IV. Implementation of Company's Equity Incentive Plan, Employee Stock Holding Plan orOther Employee Incentive Measures? Applicable □ Not-applicable
1. Equity incentive
(I) 2021 Equity Incentive Plan
1. On January 26, 2024, the 6
th Session of the Eighth Board of Directors and 6
th
Session of the Eighth Board of Supervisorsreviewed and adopted the Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2021 Restricted StockIncentive Plan, agreeing to unlock the Restricted Stock for 270 qualified Incentive Employees in the first unlock period. Thenumber of Restricted Stock unlocked is 555,750 shares. The date of circulation of the Restricted Stock unlockable during the firstunlock period is February 2. 2024.For detailed contents, see Announcement of Unlocking of Restricted Stock within the First Unlock Period of 2021 RestrictedStock Incentive Plan and the Suggestive Announcement on Listing of Restricted Stock Unlockable during the First Unlock Periodof 2021 Restricted Stock Incentive Plan disclosed on Securities Times, China Securities Journal, Securities Daily, andhttp://www.cninfo.com.cn.on January 27 and 31, 2024 (Announcement No.: 2024-005, 2024-007).
2. On August 30, 2023, the 2
nd
Session of the Eighth Board of Directors and the 2
ndSession of the Eighth Board of Supervisorsreviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of 2 incentiveemployees due to their resignation, the Company decided to repurchase and cancel 2,000 shares of restricted stock. In addition, onMarch 29, 2024, the 7
th
Session of the Eighth Board of Directors and the 7
thSession of the Eighth Board of Supervisors reviewedand adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the disqualification of 2 incentiveemployees due to their resignation, the Company decided to repurchase and cancel 5,500 shares of restricted stock. The Proposalon Repurchasing and Canceling a Part of Restricted Stock has been adopted by the Annual General Meeting of Shareholders for2023 Fiscal Year held on April 25, 2024. The Company repurchased and canceled 7,500 shares of restricted stock of 2021 EquityIncentive Plan at the price of RMB 1 per share and paid totally RMB 7,500 to the above resigned incentive employees. Afterconfirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completedrepurchase and cancellation on August 7, 2024.For detailed contents, see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement ofCompletion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times, China Securities Journal,Securities Daily, and http://www.cninfo.com.cn on August 31, 2023, March 30, 2024 and August 8, 2024 (Announcement No.:
2023-063, 2024-021 and 2024-039).(II) 2022 Equity Incentive Plan
1. On August 30, 2023, the 2
nd Session of the Eighth Board of Directors and the 2
ndSession of the Eighth Board of Supervisorsreviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of 3 incentiveemployees due to their resignation, the Company decided to repurchase and cancel 3,250 shares of restricted stock. In addition, onMarch 29, 2024, the 7
th
Session of the Eighth Board of Directors and the 7
thSession of the Eighth Board of Supervisors reviewedand adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the disqualification of 4 incentiveemployees due to their resignation, the Company decided to repurchase and cancel 9,500 shares of restricted stock. The Proposalon Repurchasing and Canceling a Part of Restricted Stock has been adopted by the Annual General Meeting of Shareholders for2023 Fiscal Year held on April 25, 2024. The Company repurchased and canceled 12,750 shares of restricted stock of 2022 EquityIncentive Plan at the price of RMB 1 per share and paid totally RMB 12,750 to the above resigned incentive employees. Afterconfirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completedrepurchase and cancellation on August 7, 2024.For detailed contents, see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement ofCompletion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times, China Securities Journal,Securities Daily, and http://www.cninfo.com.cn on August 31, 2023, March 30, 2024 and August 8, 2024 (Announcement No.:
2023-063, 2024-021 and 2024-039).(III) 2023 Equity Incentive PlanDuring the reporting period, there were no updates on the implementation of the equity incentive plan 2023 of the Company.
2. Implementation of the employee stock holding plan
□ Applicable ? Not-applicable
3. Other employee incentive measures
? Applicable □ Not-applicable(I) Performance Incentive FundOn March 29, 2024, the 7
th Session of the Eighth Board of Directors and the 7
th
Session of the Eighth Board of Supervisorsreviewed and adopted the Proposal on Accrual and Allocation Scheme of Performance Incentive Fund in 2023. According to theAdministration Measures for the Performance Incentive Fund, the accrual condition of the Performance Incentive Fund in 2023 issatisfied, the Company plans to accrue RMB22,903,379 incentive funds and distribute to 285 eligible reward employees.For detailed contents, see Announcement of Accrual and Allocation Scheme of Performance Incentive Fund in 2023 disclosedon Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on March 30, 2024(Announcement No.:2024-020).
SECTION V SOCIAL AND ENVIRONMENTAL
RESPONSIBILITIESI. Major Environmental IssuesDo the listed company and its subsidiary belong to key pollutant discharging unit posted by the environmental protectiondepartment?? Yes □ NoPolicies and industrial standards related to environmental protection
According to the Technical Specification for Application and Issuance of Pollutant Permit General Programme (HJ942-2018),the Self-monitoring Technology Guidelines for Pollution Sources - General Rule (HJ819-2017) and the national standards forpollutants discharge, the environmental impact assessment documents of construction projects and their administrative licenses,and the requirements in national environment monitoring technical specifications, the Company has improved its self-monitoringscheme, which needs to be put on record by the competent department for ecological environment under its jurisdiction.Administrative permissions for environmental protection
In accordance with the relevant system records, the status of administrative permissions for environmental protection is asfollows:
| Name of the Company or subsidiary | Completion date | Valid period |
| The Company | December 12, 2023 | From June 30, 2023 to June 29, 2028 |
| Zhejiang Supor Electrical | April 3, 2024 | From April 3, 2024 to April 2, 2029 |
| Shaoxing Supor | July 10, 2023 | From July 10, 2023 to July 9, 2028 |
| Wuhan Supor Cookware | March 15, 2024 | From September 11, 2023 to September 10, 2028 |
Industrial emission standard and pollutant discharge in production and operating activities
| Name of the Company or subsidiary | Type of main pollutant or specific pollutant | Name of main pollutant or specific pollutant | Discharge mode | Number of discharge ports | Distribution of discharge ports | Discharge concentration /intensity | Executive pollutant discharge standard | Total discharge amount | Total discharge amount checked | Excessive discharge |
| The Company | Water pollutants | CODcr | Entering the urban sewage treatment plant | 1 | Wastewater discharge port of the wastewater station in plant area | 30mg/L | Integrated Wastewater Discharge Standard (GB8978-1996) | 2.65t | 8.662t/a | None |
| Ammoniacal nitrogen | 1.5mg/L | Indirect Discharge for Emission Limitation of Nitrogen and Phosphorus for Industrial Wastewater (DB33/887-2013) | 0.13t | 0.433t/a | ||||||
| Air pollutants | SO2 | Organized emission | 39 | Workshops 1#, 2# and 6# | ＜200 mg/m? | Emission Standard of Air Pollutants for Industrial Surface Coating (DB33/2146-2018); Integrated Emission Standard of Air Pollutants (GB16297-1996); | 0.47t | 3.06t/a |
| Emission Standards of Air Pollutants for Industrial Kiln and Furnace (GB9078-1996) | |||||||||
| NOx | ＜300 mg/m? | Emission Standard of Air Pollutants for Industrial Surface Coating (DB33/2146-2018); Integrated Emission Standard of Air Pollutants (GB16297-1996); Emission Standards of Air Pollutants for Industrial Kiln and Furnace (GB9078-1996) | 4.43t | 14.66t/a | |||||
| Zhejiang Supor Electrical | Water pollutants | CODcr | Indirect discharge | 1 | General outlets of wastewater (DW001) | 139.385mg/l | Integrated Wastewater Discharge Standard (GB8978-1996) | 7.22t | 111.1348t/a |
| Ammoniacal nitrogen | 9.011 mg/l | Indirect Discharge for Emission Limitation of Nitrogen and Phosphorus for Industrial Wastewater (DB33/887-2013) | 0.42t | 7.7794t/a | |||||
| Total nitrogen (calculated in N) | 16.045mg/l | Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) | 0.7001t | 15.5589t/a | |||||
| Shaoxing Supor | Water pollutants | CODcr | Discharge from urban pipeline | 1 | DW001 Comprehensive Sewage Discharge Outlet | 123.82mg/L | Integrated Wastewater Discharge Standard (GB8978-1996) | 46.345t | 224.657t/a |
| Ammoniacal nitrogen | 9.92mg/L | Indirect Discharge for Emission Limitation of Nitrogen and Phosphorus for Industrial Wastewater (DB33/887-2013) | 3.69t | 9.363t/a | |||||
| Total nitrogen (calculated in N) | 14.55mg/L | Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) | 5.399t | 33.447t/a | |||||
| Wuhan Supor Cookware | Water pollutants | CODcr | Indirect discharge | 1 | The main discharge outlet of the sewage treatment plant on the north side of the plant area | ＜500mg/L | Integrated Wastewater Discharge Standard (GB8978-1996) | 4.990t | 19.38t/a |
| Ammoniacal nitrogen | ＜45mg/L | Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) | 0.263t | 1.94t/a |
Treatment of pollutants
Under special sewage treatment mechanism in the Company, all wastewater generated will gather at this station for centraltreatment. After chemical precipitation and autocatalyzed oxidation, wastewater will meet the discharge standards and then bedischarged into urban wastewater pipes. At the same time, the Company has reclaimed water reuse facilities that can arrange water
treatment plan according to water quality. The production wastewater is first treated at the sewage treatment station and thendisposed through the reclaimed water system for production. After that, part of the sanitary sewage after combined treatmententers municipal sewage network.The Company collects different waste gases and uses different treatment modes, and then discharges after reaching the standard.The treatment processes involved are as follows: water curtain, spray tower, dry filter, low-temperature plasma, cyclone and filterdust collector, activated carbon adsorption, UV photolysis purification, desorption and catalytic combustion and other combinedtreatments.The Company has established a reliable wastewater and waste gas treatment system, and ensures that the discharge and disposalof three wastes generated in the process of production and operation comply with relevant laws and regulations through regularinspection, supervision and inspection mechanism and third-party inspection organizations. During the reporting period, theCompany did not exceed the standard discharge, and met the relevant requirements of the competent department for ecologicalenvironment.Environmental emergency planThe Company has completed the emergency plan for environmental emergencies and conducted regular emergency drills.Environmental governance and protection input and payment of environmental protection taxDuring the reporting period, the Company's total investment in environmental governance and protection was RMB 12.809million, including RMB 0.0317 million of environmental protection tax.Environmental monitoring schemeThe Company has formulated an annual environmental monitoring scheme in accordance with relevant national laws andregulations, and entrusted a qualified third party to carry out environmental monitoring.Administrative penalties for environmental problems during the reporting periodNoneOther environmental information that shall be made publicNoneMeasures and effects taken to reduce carbon emissions during the reporting period? Applicable □ Not-applicableSupor actively responds to "carbon peaking and carbon neutrality" goals, and adhering to the operational concept of low-carbondevelopment, fully committed to promoting the implementation of distributed photovoltaic projects in various production bases,facilitating the application of clean energy in production activities, cooperating with the market-oriented reform of environmentalresource elements such as carbon trading, and implementing low-carbon, green, and sustainable development through greenfinancial payment actions. The Company closely focuses on changes in the climate and environment, and takes multiple measuresto implement sustainable environmental protection behaviours and continuously promote green manufacturing upgrades.In order to reduce carbon emissions in the value chain process of extracting, transporting and smelting primary mineral resources,Supor has initiated and encouraged its customers to use raw materials such as recycled aluminium and recycled stainless steel, inan effort to achieve a reduction in carbon footprint on the corporate side. In addision, following the photovoltaic project at theLongshan plant area in Yuhuan Base, the Company's second photovoltaic project of Supor in Vietnam Base successfully achievedgrid-connected power generation at the end of the reporting period. During the reporting period, the Company carried out theimplementation of recycled raw materials projects, clean energy self-generation projects, etc., and achieved a reduction of 93,020tonnes of carbon emissions.Other environmental protection related informationNone
II. Social ResponsibilitiesDuring the reporting period, the Company continued to actively support the national policies of rural revitalization andcommon prosperity, adhering to its corporate vision and mission, and practicing the public welfare proposition of "sharing a betterlife with every child", and gave full play to its advantages in industry and resources to donate funds and materials to improve theconditions of basic education in rural mountainous areas in central and western China, supported life education in urban and ruralschools. It collaborated with urban and rural communities to cultivate children and adolescents of the new era who are aspiring,active, and healthy in mind and body.At present, the Company has completed the construction of 28 Supor Primary Schools in remote mountainous areas in thecentral and western regions. In the first half of 2024, the Company has confirmed its intention to donate one more school. Inaddition to the improvement of school facilities, Supor has partnered with relevant charitable organizations to continue offeringonline live-streaming classes in art, foreign languages, and science to the needy Supor primary schools in mountainous areas.Moreover, the Company also supplements volunteer teachers to make children in mountain villages to also access high-qualityeducational resources. The Company also has a long-term focus on broadening the educational horizons of teachers in ruralmountainous areas, conducting teacher training and awards, which also could enhance the educational capability of each SuporPrimary School.In the first half of 2024, Supor signed a strategic cooperation with the Zhejiang Provincial Youth Development Foundation,which plans to donate RMB 3 million worth of money and goods during the next three years, the joint implementation of the"Project Hope-Little Artist of Life", a project which supports the construction of life education spaces in urban and rural schools,carries out life and labor classes, and improves life literacy education jobs, so that children can gain a better growth in practice.Meanwhile, on the occasion of 30
th
anniversary, Supor has donated 10,000 children's insulated water bottles (valued at RMB
1.29 million) through the Zhejiang Provincial Youth Development Foundation. These water bottles will be delivered to remoterural schools at the beginning of the term in the second half of the year.In the future, the Company will actively support the national policies of rural revitalization and common prosperity, give fullplay to the advantages of Supor's business capabilities and resources, promote various charity programs and activities in terms ofliteracy education for children in rural villages and broadening their horizons, and work with more like-minded charity partners tocontribute to a better life and better society in rural areas.
| Indicator | Measurement unit | Quantity/fulfillment |
| Rural revitalization and common prosperity | —— | —— |
| Including: Investment amounts for funding poor students | RMB 10,000 |
Coverage of rural students
| Coverage of rural students | Person | 30,000 |
| Investment amount for improving the educational resources (material value) in rural areas | RMB 10,000 | 184 |
| Awards received (content, grade) | —— | —— |
Benchmark Enterprise in Corporate Social Responsibility inZhejiang Province in 2023
| Benchmark Enterprise in Corporate Social Responsibility in Zhejiang Province in 2023 |
SECTION VI SIGNIFICANT EVENTSI. Commitments Fulfilled during the Reporting Period and Unfulfilled till the End ofReporting Period by Actual Controllers, Shareholders, Related Parties, Acquirers andOther Commitment Parties of the Company
□ Applicable ? Not-applicable
There were no commitments fulfilled during the reporting period and unfulfilled till the end of reporting period by actualcontrollers, shareholders, related parties, acquirers and other commitment parties of the Company.II. Occupied Non-business Capital of Listed Company for Controlling Shareholders andRelated Parties
□ Applicable ? Not-applicable
There was no non-operating occupation of capital of listed companies by controlling shareholders and their related parties of theCompany during the reporting period.III. Illegal External Guarantee
□ Applicable ? Not-applicable
There was no illegal external guarantee of the Company during the reporting period.IV. Employment and Disengagement of Certified Public AccountantsWhether the semiannual financial report has been audited
□ Yes ? No
The Company's semiannual report has not been audited.
V. Explanation on the Board of Directors and the Board of Supervisors on the "Non-standard Audit Report" provided by the accounting firm during the reporting period
□ Applicable ? Not-applicable
VI. Explanation of the Board of Directors on Last Year's "Non-standard Audit Report"
□ Applicable ? Not-applicable
VII. Bankruptcy or Reorganization
□ Applicable ? Not-applicable
There was no bankruptcy, reorganization or related matters in the Company during the reporting period.VIII. Litigation MattersSignificant litigations and arbitrations
□ Applicable ? Not-applicable
There was no significant litigation and arbitration occurred during the reporting period.Other litigation matters
□ Applicable ? Not-applicable
IX. Punishment and Rectification
□ Applicable ? Not-applicable
There was no punishment and rectification during the reporting period.X. Integrity of the Company, Its Controlling Shareholders and Actual Controllers
□ Applicable ? Not-applicable
XI. Major Related Transactions
1. Related transaction related to daily business
? Applicable □ Not-applicable
| Related party | Correlated relation | Type of related transaction | Contents of related transaction | Pricing principle of related transaction | Price of related transaction | Amount of related transaction (RMB10,000) | Percentage to amount of same transaction | Approved transaction limit (RMB 10,000) | Exceeding approved limit or not | Means of payments of related transaction | Market price of available same transaction | Date of disclosure | Reference for disclosure |
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise | Purchase of commodity | Finished products | Contract price | - | 6,991.07 | 0.99% | No | Bank transfer or notes | - | |||
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise | Purchase of commodity | Accessories | Market price | - | 1,715.82 | 0.24% | No | Bank transfer or notes | - | |||
| GROUPE SEB EXPORT | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 22.31 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB EXPORT | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 14.76 | 0.00% | No | Bank transfer or notes | - | |||
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 1,398.99 | 0.20% | No | Bank transfer or notes | - | |||
| LAGOSTINA S.P.A. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 240.96 | 0.03% | No | Bank transfer or notes | - | |||
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 5.51 | 0.00% | No | Bank transfer or notes | - | |||
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 16.54 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB MOULINEX | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 54.06 | 0.01% | No | Bank transfer or notes | - | |||
| SEB ASIA LTD. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 33.37 | 0.00% | No | Bank transfer or notes | - |
| ETHERA | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 2.37 | 0.00% | No | Bank transfer or notes | - | |||
| WMF GROUPE GMBH | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 3,062.57 | 0.43% | No | Bank transfer or notes | - | |||
| GROUPE SEB KOREA LTD. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 2.5 | 0.00% | No | Bank transfer or notes | - | |||
| SEB Professional (Shanghai) Co,. Ltd. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 9.72 | 0.00% | No | Bank transfer or notes | - | |||
| Wmf (heshan) Manufacturing Company Limited | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 0.69 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 16.06 | 0.00% | No | Bank transfer or notes | - | |||
| SEB ASIA LTD. | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 319,864.22 | 29.17% | No | Bank transfer or notes | - | |||
| SEB ASIA LTD. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1,678.23 | 0.15% | No | Bank transfer or notes | - | |||
| S.A.S. SEB | Same controlling shareholder with the controlling shareholder | Sale of commodities | Finished products | Contract price | - | 346.6 | 0.03% | No | Bank transfer or notes | - | |||
| S.A.S. SEB | Same controlling shareholder with the controlling shareholder | Sale of commodities | Accessories | Contract price | - | 34.17 | 0.00% | No | Bank transfer or notes | - | |||
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder | Sale of commodities | Finished products | Contract price | - | 176.25 | 0.02% | No | Bank transfer or notes | - | |||
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1,078.74 | 0.10% | No | Bank transfer or notes | - | |||
| GROUPE SEB MOULINEX | Same controlling shareholder with the controlling shareholder | Sale of commodities | Finished products | Contract price | - | 1,238.43 | 0.11% | No | Bank transfer or notes | - | |||
| Supor Group Co., Ltd. | Company controlled by related natural person | Sale of commodities | Finished products | Market price | - | 202.23 | 0.02% | No | Bank transfer or notes | - | |||
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1,208.9 | 0.11% | No | Bank transfer or notes | - | |||
| LAGOSTINA S.P.A. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 42.6 | 0.00% | No | Bank transfer or notes | - | |||
| IMUSA USA LLC | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 362.54 | 0.03% | No | Bank transfer or notes | - | |||
| IMUSA USA LLC | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1.04 | 0.00% | No | Bank transfer or notes | - | |||
| SEB Professional (Shanghai) Co,. Ltd. | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 12.42 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 742.03 | 0.07% | No | Bank transfer or notes | - |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1.83 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB CANADA | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 377.52 | 0.03% | No | Bank transfer or notes | - | |||
| GROUPE SEB ANDEAN S.A. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 432.42 | 0.04% | No | Bank transfer or notes | - | |||
| Total | -- | -- | 341,387.47 | -- | 0 | -- | -- | -- | -- | -- | |||
| Details of large sales return | Not-applicable | ||||||||||||
| Actual implementation of estimated total amount of related transaction by category incurred during the period during the reporting period (if any) | From January to June, 2024, the actual amount of daily related transactions between the Company and Groupe SEB reached RMB 3,324.7835 million. | ||||||||||||
| Reason for the big difference between transacted price and market reference price (if applicable) | Not-applicable | ||||||||||||
2. Related transactions from purchase and sales for assets or equity
□ Applicable ? Not-applicable
There were no related transactions from purchase and sales for assets or equity during the reporting period.
3. Related transaction from external co-investment
□ Applicable ? Not-applicable
There was no related transaction involving joint external investment during the reporting period.
4. Connected creditor's rights and debts
□ Applicable ? Not-applicable
There were no related creditor's rights and debts during the reporting period
5. Dealings with associated financial companies
□ Applicable ? Not-applicable
There was no deposit, loan, credit or other financial business between the Company and associated financial companies and theirrelated parties.
6. Dealings between the financial companies controlled by the Company and their related parties
□ Applicable ? Not-applicable
There was no deposit, loan, credit or other financial business between the Company and holding financial companies and theirrelated parties.
7. Other important Related transactions
□ Applicable ? Not-applicable
There were no significant related transactions during the reporting period.
XII. Significant Contracts and Performance
1. Custody, contracting, and leasing
(1) Custody
□ Applicable ? Not-applicable
No custody was made during the reporting period.
(2) Contracting
□ Applicable ? Not-applicable
No contracting was made during the reporting period.
(3) Leasing
? Applicable □ Not-applicableCircumstances of leasingPlease refer to "15. Right-of-use assets" and "28. Lease obligation" of Part VII "Notes to Items of Consolidated FinancialStatements" of SECTION X "FINANCIAL REPORT".The profit and loss brought to the Company reaches more than 10% of the total profit of the Company during the reporting period.
□ Applicable ? Not-applicable
During the reporting period, there are no leasing items that bring profits and losses of the Company to more than 10% of the totalprofits of the Company during the reporting period.
2. Major guarantee
? Applicable □ Not-applicable
Unit: RMB 10,000
| External guarantee of the Company and its subsidiaries (excluding the guarantee to subsidiaries) | ||||||||||
| Name of guaranteed object | Disclosure date of announcement related to the guaranteed amount | Guaranteed amount | Actual occurring date | Actual guaranteed amount | Guarantee type | Collateral (if any) | Counter-guarantee (if any) | Guarantee period | Fulfilled or not | Whether it is guaranteed by related parties |
| Supor's distributors who meet certain conditions | March 31, 2023 | 140,000.00 | July 2023-December 2023 | 45,829.35 | General guarantee and pledge | Cash | Yes | July 2023 - June 2024 | Yes | No |
| Supor's distributors who meet certain conditions | March 31, 2023 | 140,000.00 | January 2024-March 2024 | 24,533.64 | General guarantee and pledge | Cash | Yes | January 2024 - September 2024 | No | No |
| Supor's distributors who meet certain conditions | March 30, 2024 | 140,000.00 | April 2024-June 2024 | 13,148.21 | General guarantee and pledge | Cash | Yes | April 2024 - December 2024 | No | No |
| Total external guaranteed amount approved during the reporting period (A1) | 140,000.00 | Total actual amount of external guarantee during the reporting period (A2) | 83,511.19 | |||||||
| Total external guaranteed amount approved at the end of the reporting period (A3) | 280,000.00 | Total actual external guarantee balance at the end of the reporting | 21,035.36 | |||||||
| period (A4) | ||||||||||
| Guarantee of the Company to subsidiaries | ||||||||||
| Name of guaranteed object | Disclosure date of announcement related to the guaranteed amount | Guaranteed amount | Actual occurring date | Actual guaranteed amount | Guarantee type | Collateral (if any) | Counter-guarantee (if any) | Guarantee period | Fulfilled or not | Whether it is guaranteed by related parties |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | March 31, 2023 | 260,000.00 | July 2023-December 2023 | 85,627.50 | Joint liability guarantee | None | None | July 2023 - June 2024 | Yes | No |
| Wuhan Supor Cookware Co., Ltd. | March 31, 2023 | 30,000.00 | July 2023-December 2023 | 4,885.00 | General guarantee | None | None | July 2023 - June 2024 | Yes | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | March 31, 2023 | 260,000.00 | January 2024-March 2024 | 29,103.20 | Joint liability guarantee | None | None | January 2024 - September 2024 | No | No |
| Wuhan Supor Cookware Co., Ltd. | March 31, 2023 | 30,000.00 | January2024-March 2024 | 2,245.00 | General guarantee | None | None | January 2024 - September 2024 | No | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | March 30, 2024 | 260,000.00 | April 2024-June 2024 | 88,810.00 | Joint liability guarantee | None | None | April 2024 - December 2024 | No | No |
| Approved total guaranteed amount towards the subsidiaries during the reporting period (B1) | 400,000.00 | Total actual amount of guarantee to subsidiaries during the reporting period (B2) | 210,670.70 | |||||||
| Total guaranteed amounts to subsidiaries approved at the end of the reporting period (B3) | 700,000.00 | Total actual guarantee balance for subsidiaries at the end of the reporting period (B4) | 120,158.20 | |||||||
| Guarantee of the subsidiaries to subsidiaries | ||||||||||
| Name of guaranteed object | Disclosure date of announcement related to the guaranteed amount | Guaranteed amount | Actual occurring date | Actual guaranteed amount | Guarantee type | Collateral (if any) | Counter-guarantee (if any) | Guarantee period | Fulfilled or not | Whether it is guaranteed by related parties |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | March 31, 2023 | 260,000.00 | July 2023 – December 2023 | 16,306.50 | General guarantee | None | None | July 2023 - June 2024 | Yes | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | March 31, 2023 | 260,000.00 | January 2024-March 2024 | 13,650.00 | General guarantee | None | None | January 2024 - September 2024 | No | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | March 30, 2024 | 260,000.00 | April 2024-June 2024 | 6,349.00 | General guarantee | None | None | April 2024 - December 2024 | No | No |
| Approved total guaranteed amount towards the subsidiaries during the reporting period (C1) | 0 | Total actual amount of guarantee to subsidiaries during the reporting period (C2) | 36,305.50 | |||||||
| Total guaranteed amounts to subsidiaries approved at the end of the reporting period (C3) | 0 | Total actual guarantee balance for subsidiaries at the end of the reporting period (C4) | 19,999.00 | |||||||
| Total guaranteed amount of the Company (namely the total of the first three items) | ||||||||||
| Total approved guaranteed amount during the reporting period (A1+B1+C1) | 540,000.00 | Total guaranteed actual amount during the reporting period (A2+B2+C2) | 330,487.39 | |||||||
| Total approved guaranteed amount at the end of the reporting period (A3+B3+C3) | 980,000.00 | Total actual guarantee balance at the end of the reporting period (A4+B4+C4) | 161,192.56 | |||||||
| Proportion of the total amount of actual guarantee (i.e. A4+B4+C4) to the net assets of the Company | 31.57% |
| Including: | |
| Total guaranteed amount towards shareholders, actual controllers and related parties (D) | 0 |
| Balance of debt guarantee directly or indirectly provided to the guaranteed object with an asset-liability ratio exceeding 70% (E) | 19,999.00 |
| Amount of the total guarantee exceeding 50% of the net assets (F) | 0 |
| Total amount of the above three guarantees (D+E+F) | 19,999.00 |
| Description of the guarantee liability occurred during the reporting period or there is evidence that it is possible to bear joint and several liability for settlement for the unexpired guarantee contract (if any) | Not-applicable |
| Explanation on external guarantee provided against the established procedures (if any) | Not-applicable |
Note: The 7
thSession of the Eighth Board of Directors and the Annual General Meeting of Shareholders for 2023 Fiscal Year ofthe Company reviewed and adopted the Proposal on Guarantee for Wholly-owned Subsidiaries and Mutual Guarantee amongWholly-owned Subsidiaries, and agreed that the Company and its wholly-owned subsidiaries would provide guarantees up to RMB4 billion for the wholly-owned subsidiaries in the year of 2024. Among them, the guaranteed amount for companies with higherthan 70% (inclusive) asset-liability ratio or over was RMB 2.65 billion, and RMB 1.35 billion for companies with an asset-liabilityratio below 70%.Specific description for using the composite guarantee situationNone
3. Entrusted financing
? Applicable □ Not-applicable
Unit: RMB 10,000
| Specific type | Source of fund for entrusted financing | Amount incurred of entrusted financing | Undue balance | Overdue amount unclaimed | The amount of impairment accrued from overdue financial investment products |
| Bank financial products | Self-owned capital | 30,000 | 10,000 | 0 | 0 |
| Financial products of securities trader | Self-owned capital | 5,000 | 0 | 0 | 0 |
| Others | Self-owned capital | 8,000 | 8,000 | 0 | 0 |
| Total | 43,000 | 18,000 | 0 | 0 | |
Note: Details about the short-term financial products newly-purchased within first half year of 2024 can be found in theAnnouncement of Short-term Investment Using Excessive Cash (Announcement No.: 2024-016) and Announcement of Progress ofUsing Excessive Cash to Purchase Financial Products (Announcement No.: 2024-036) disclosed on the http://www.cninfo.com.cn.Specific situation of high-risk entrusted finance with significant single amount, low security and poor liquidity
□ Applicable ? Not-applicable
Circumstances in which principal of entrusted financing may not be recovered or which may result in decrease in value:
□ Applicable ? Not-applicable
4. Other significant contracts
□ Applicable ? Not-applicable
There were no other significant contracts involved in the Company during the reporting period.XIII. Explanation on Other Important Matters
□ Applicable ? Not-applicable
The Company has no other important matters to be explained during the reporting period.
XIV. Important Matters of Subsidiaries
□ Applicable ? Not-applicable
SECTION VII CHANGES IN SHARE CAPITAL AND
PARTICULARS ABOUT SHAREHOLDERSI. Changes of Shares
1. Changes of shares
Unit: share
| Before change | Increase/decrease in the period (+, -) | After change | |||||||
| Share number | Proportion | New shares | Shares bonus | Converted capital | Others | Subtotal | Share number | Proportion | |
| I. Restricted Outstanding Shares | 2,826,535 | 0.35% | -655,218 | -655,218 | 2,171,317 | 0.27% | |||
| 1. Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 2. Stated-owned legal person shares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 3. Other domestic shareholdings | 2,826,535 | 0.35% | -655,218 | -655,218 | 2,171,317 | 0.27% | |||
| Including: Shares held by domestic legal entities | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| Shares held by domestic natural persons | 2,826,535 | 0.35% | -655,218 | -655,218 | 2,171,317 | 0.27% | |||
| 4. Shares held by foreign capitals | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| Including: Shares held by foreign legal entities | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| Shares held by foreign natural persons | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| II. Non-restricted Outstanding Shares | 803,882,122 | 99.65% | -4,494,782 | -4,494,782 | 799,387,340 | 99.73% | |||
| 1. Common shares in RMB | 803,882,122 | 99.65% | -4,494,782 | -4,494,782 | 799,387,340 | 99.73% | |||
| 2. Domestically listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| III. Sum of Shares | 806,708,657 | 100.00% | -5,150,000 | -5,150,000 | 801,558,657 | 100.00% | |||
Reasons for the change of shares? Applicable □ Not-applicable
1. Top management of the Company unlocked 25% of the shares registered under their names based on holding shares at lasttransaction date of the last year.
2. On February 2, 2024, totally 555,750 shares of Restricted Stock in the first unlock period under the 2021 Restricted StockIncentive Plan were unlocked and circulated on the market.
3. On April 24, 2024, totally 5,150,000 shares of repurchased shares held in the Company’s special stock repurchase account were
canceled. Following the completion of cancellation, the Company's total capital stock was reduced from 806,708,657 shares to801,558,657 shares.
4. On August 7, 2024, totally 20,250 shares of restricted stock granted to the resigned incentive employees under Restricted StockIncentive Plan 2021 and 2022 were repurchased and canceled by the Company. Following the completion of repurchase andcancellation, the Company's total capital stock was reduced from 801,558,657 shares to 801,538,407 shares.Approval of change in shares? Applicable □ Not-applicable
1. The Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2021 Restricted Stock Incentive Plan wasreviewed and adopted by the 6
th Session of the Eighth Board of Directors and 6
thSession of the Eighth Board of Supervisors heldon January 26, 2024, agreeing to unlock the Restricted Stock for 270 qualified Incentive Employees in the first unlock period. Thenumber of Restricted Stock unlocked is 555,750 shares. The date of circulation of the Restricted Stock unlockable during the firstunlock period is February 2. 2024
2. The Proposal on Public Shares Repurchase Plan was reviewed and adopted by the 19
th
Session of the Seventh Board ofDirectors held on March 29, 2023 and the Annual General Meeting of Shareholders for 2022 Fiscal Year held on April 25, 2023.The above share repurchase plan was completed on April 24, 2024 and then the Company canceled 5,150,000 shares held in theCompany’s special stock repurchase account to reduce registered capital as authorized by the Annual General Meeting ofShareholders for 2022 Fiscal Year. The Company completed the cancellation of repurchased stock on April 30, 2024, after it wasreviewed and confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
3. The Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted by the 2
ndSession of theEighth Board of Directors and the 2
nd Session of the Eighth Board of Supervisors held on August 30, 2023, and the 7
thSession ofthe Eighth Board of Directors and the 7
thSession of the Eighth Board of Supervisors held on March 29, 2024, totally sevenincentive employees did not meet the incentive requirements due to resignation. The Company plans to repurchase and cancel20,250 shares of unlocked Restricted Stock at the price of RMB1.00 per share. The above proposal was reviewed and adopted bythe Annual General Meeting of Shareholders for 2023 Fiscal Year on April 25, 2024. The Company completed repurchase andcancellation on August 7, 2024.Transfer of shares changed
□ Applicable ? Not-applicable
Progress in the implementation of share repurchase? Applicable □ Not-applicable(I) Public Shares Repurchase Plan 2023The 19
thSession of the Seventh Board of Directors held on March 29, 2023 and the Annual General Meeting of Shareholdersfor 2022 Fiscal Year held on April 25, 2023 reviewed and adopted the Proposal on Public Shares Repurchase Plan, according towhich the Company shall repurchase its own shares from the secondary market through concentrated bidding at the maximumprice of no more than RMB 60.93 per share, and the top limitation of shares to be repurchased shall not exceed 16,134,174 sharesand the bottom limitation of shares shall not lower than 8,067,087 shares. The time limit for shares repurchase shall not be morethan 12 months from the date of the adoption of the plan by the general meeting of shareholders. The Company first implementedthis shares repurchase plan on June 2, 2023, and completed it on April 24, 2024. The number of shares actually repurchased by theCompany was 8,150,000 shares, accounting for 1.01% of the total shares of the Company (total capital stock before thecancellation). In specific, the highest price is RMB 53.14 yuan per share and the lowest price is RMB 44.37 yuan per share withtotal payment of RMB 400,080,700 (excluding the transaction fee). The Company canceled 5,150,000 shares held in theCompany’s special stock repurchase account to reduce registered capital as authorized by the Annual General Meeting ofShareholders for 2022 Fiscal Year on April 30, 2024. Following the completion of cancellation, the Company's total capital stockwas reduced from 806,708,657 shares to 801,558,657 shares. There are 4,667,500 shares remaining in the Company’s specialstock repurchase account upon completion of the repurchased shares cancellation, which include the 3,000,000 repurchased sharesremained from the above-mentioned Public Shares Repurchase Plan and the 1,667,500 repurchased shares remained from previous
Public Shares Repurchase Plan, and these remaining repurchased shares will be used for implementing future equity incentiveplans, and if the Company fails to do so within three years after the completion of the Public Shares Repurchase Plan, thoserepurchased shares will be canceled accordingly. Before completion of cancellations and implementation of equity incentive plans,the repurchased shares are deposited in the Company’s special stock repurchase account. Above repurchased shares are notentitled to profit distribution, capitalization of provident fund, issuance of new shares and allotment of shares, pledge, voting rightsat shareholders' meetings and other related rights.For detailed contents, see Announcement on Completion of Cancellation of Repurchased Shares from Public SharesRepurchase Plan disclosed on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on May7, 2024 (Announcement No.: 2024-031).Progress in the reduction of shareholding of repurchased shares through auction
□ Applicable ? Not-applicable
Influence of shares changes on basic earnings per share and diluted earnings per share in latest year and period, net assets per shareattributable to the Company's common shareholders and other financial indexes.? Applicable □ Not-applicableSince the repurchase and cancellation of 5,150,000 public shares has tiny influence on basic earnings per share and dilutedearnings per share in the current period and generates nearly no effect on other financial indicators (e.g. net assets per shareattributable to the Company's common shareholders).Other contents that the Company thinks fit to disclose or the securities regulatory authority requires to disclose
□ Applicable ? Not-applicable
2. Changes of restricted outstanding shares
? Applicable □ Not-applicable
Unit: share
| Name of Shareholders | Restricted outstanding shares at the beginning of the year | Restricted outstanding shares released in current period | Restricted outstanding shares increased in current period | Restricted outstanding shares at the end of the year | Restriction reason | Date of releasing restriction |
| Su Xianze | 273,451 | 68,363 | 0 | 205,088 | Locked stocks of top management | Unlocked 25% of the shares registered under their names based on holding shares at the last transaction date of the last year. |
| Xu Bo | 86,477 | 47,266 | 22,500 | 61,711 | Locked stocks of top management | Unlocked 25% of the shares registered under their names based on holding shares at the last transaction date of the last year. |
| Ye Jide | 24,357 | 16,339 | 10,000 | 18,018 | Locked stocks of top management | Unlocked 25% of the shares registered under their names based on holding shares at the last transaction date of the last year. |
| Incentive employees of 2021 Equity Incentive Plan | 1,111,500 | 555,750 | 0 | 555,750 | Equity incentive restricted shares | In the Company's 2021 Restricted Stock Incentive Plan, 1,209,500 shares of restricted stock were transferred to 293 incentive employees on January 27, 2022. The above restricted stocks will be unlocked in two phases after 24 months from the grant date, with the unlocking proportion of each phase being 50%. The first phase was |
| unlocked and listed for trading on February 2, 2024. The second phase is expected to be unlocked on January 27, 2025. | ||||||
| Incentive employees of 2022 Equity Incentive Plan | 1,330,750 | 0 | 0 | 1,330,750 | Equity incentive restricted shares | In the Company's 2022 Restricted Stock Incentive Plan, 1,253,500 shares of restricted stock were transferred to 288 incentive employees on November 10, 2022. A total of 79,000 restricted stock of the postponed portion were transferred to two incentive employees on February 24, 2023. The above restricted stocks will be unlocked in two phases after 24 months from the grant date, with the unlocking proportion of each phase being 50%. The first phase is expected to be unlocked on November 10, 2024, and the first phase of the postponed portion is expected to be unlocked on February 24, 2025. The second phase is expected to be unlocked after November 10, 2025, and the second phase of the postponed portion is expected to be unlocked after February 24, 2026. |
| Total | 2,826,535 | 687,718 | 32,500 | 2,171,317 | -- | -- |
II. Security Offering and Listing Information
□ Applicable ? Not-applicable
III. Number of Shareholders of the Company and Shareholding Information
Unit: share
| Total number of common shareholders at the end of the reporting period | 16,007 | Total number of preferred shareholder whose voting right is recovered at the end of reporting period (if any) (refer to Note 8) | 0 | |||||
| Shareholding information on common shareholders holding more than 5% shares or top 10 common shareholders (excluding shares lent through refinancing and financing) | ||||||||
| Name | Nature | Shareholding ratio | Number of common shares at the end of the reporting period | Increase/ decrease during the reporting period | Number of restricted common shares | Number of non-restricted common shares | Pledge, marking or freezing | |
| Status of share | Share number | |||||||
| SEB INTERNATIONALE S.A.S | Foreign legal entity | 83.17% | 666,681,904 | 0 | 0 | 666,681,904 | Not-applicable | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal entity | 7.18% | 57,576,593 | -11,152,339 | 0 | 57,576,593 | Not-applicable | 0 |
| Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds | Others | 0.81% | 6,457,863 | -455,777 | 0 | 6,457,863 | Not-applicable | 0 |
| China Life Insurance Co., Ltd.-Traditional-General Insurance Products-005L- | Others | 0.47% | 3,753,796 | 3,368,796 | 0 | 3,753,796 | Not-applicable | 0 |
| CT001 (SSEC) | |||||||||
| China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds | Others | 0.26% | 2,087,997 | -302,951 | 0 | 2,087,997 | Not-applicable | 0 | |
| SDIC Securities Co., Ltd. | State-owned legal person | 0.25% | 1,981,800 | 1,977,400 | 0 | 1,981,800 | Not-applicable | 0 | |
| China Life Insurance Co., Ltd.-Individual Dividends-005L-FH002 (SSEC) | Others | 0.24% | 1,904,129 | 1,497,232 | 0 | 1,904,129 | Not-applicable | 0 | |
| GF Fund Management-China Life Insurance Co., Ltd. - Traditional Insurance - GF Fund China Life Stock Balanced Traditional& Saleable Single Asset Management Plan | Others | 0.24% | 1,904,100 | 1,904,100 | 0 | 1,904,100 | Not-applicable | 0 | |
| National Social Security Fund No.414 | Others | 0.24% | 1,897,000 | 1,897,000 | 0 | 1,897,000 | Not-applicable | 0 | |
| GF Fund Management-China Life Insurance Co., Ltd.-Dividend Insurance- GF Fund China Life Stock Balanced Portfolio Single Asset Management Plan (Saleable) | Others | 0.19% | 1,561,802 | 1,561,802 | 0 | 1,561,802 | Not-applicable | 0 | |
| Strategic investor or general corporate investor who becomes top 10 common shareholder as a result of rights issue (if any) (see Note 3) | None | ||||||||
| Explanation on the above-mentioned shareholder relationships or concerted actions | Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds and China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds are both managed by Zhongtai Securities (Shanghai) Asset Management Co., Ltd. GF Fund Management-China Life Insurance Co.,Ltd. - Traditional Insurance - GF Fund China Life Stock Balanced Traditional& Saleable Single Asset Management Plan, National Social Security Fund No.414, and GF Fund Management-China Life Insurance Co.,Ltd.-Dividend Insurance- GF Fund China Life Stock Balanced Portfolio Single Asset Management Plan (Saleable) are all managed by GF Funds Management Co., Ltd. China Life Insurance Co.,Ltd.-Traditional-General Insurance Products-005L-CT001 (SSEC) and China Life Insurance Co., Ltd.-Individual Dividends-005L-FH002 (SSEC) belong to China Life Insurance Company Ltd. It is unknown whether other shareholders are associated with each other, and whether they are persons acting in concert as stipulated in the Measures for the Administration of the Acquisition of Listed Companies. | ||||||||
| Explanation on the above shareholders on entrusting/entrusted voting rights and abstaining from voting rights | None | ||||||||
| Special instructions on the existence of repurchase special accounts of the top 10 shareholders (if any) (see Note 10) | At the end of the reporting period, the Company held a total of 4,667,500 shares in the special securities account for repurchase. | ||||||||
| Shareholding information of top 10 common shareholders holding non-restricted shares (excluding shares lent through refinancing and financing, and locked stocks of top management) | |||||||||
| Name of Shareholders | Number of non-restricted common shares held at the end of the reporting period | Type of share | |||||||
| Type of share | Share number | ||||||||
| SEB INTERNATIONALE S.A.S | 666,681,904 | RMB common shares | 666,681,904 | ||||||
| Hong Kong Securities Clearing Company Ltd. | 57,576,593 | RMB common shares | 57,576,593 | ||||||
| Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds | 6,457,863 | RMB common shares | 6,457,863 | ||||||
| China Life Insurance Co., Ltd.-Traditional-General Insurance Products-005L- CT001 (SSEC) | 3,753,796 | RMB common shares | 3,753,796 |
| China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds | 2,087,997 | RMB common shares | 2,087,997 |
| SDIC Securities Co., Ltd. | 1,981,800 | RMB common shares | 1,981,800 |
| China Life Insurance Co., Ltd.-Individual Dividends-005L-FH002 (SSEC) | 1,904,129 | RMB common shares | 1,904,129 |
| GF Fund Management-China Life Insurance Co., Ltd. - Traditional Insurance - GF Fund China Life Stock Balanced Traditional& Saleable Single Asset Management Plan | 1,904,100 | RMB common shares | 1,904,100 |
| National Social Security Fund No.414 | 1,897,000 | RMB common shares | 1,897,000 |
| GF Fund Management-China Life Insurance Co., Ltd.-Dividend Insurance- GF Fund China Life Stock Balanced Portfolio Single Asset Management Plan (Saleable) | 1,561,802 | RMB common shares | 1,561,802 |
| Explanation on associated relationship or concerted actions among top 10 common shareholders holding non-restricted shares, and between top 10 common shareholders holding non-restricted shares and top 10 common shareholders | Same as above | ||
| Information on top 10 common shareholders involved in securities margin trading business (if any) (see Note 4) | None | ||
Shareholders holding more than 5% of shares, the top 10 shareholders and the top 10 shareholders with unrestricted sharesparticipating in the refinancing business to lend shares
□ Applicable ? Not-applicable
Top 10 shareholders and the top 10 shareholders with unrestricted shares changed from the previous period due tolending/returning of refinancing
□ Applicable ? Not-applicable
Did the top 10 common shareholders and the top 10 common shareholders holding non-restricted shares conduct the agreedrepurchase transaction during the reporting period?
□ Yes ? No
The top 10 common shareholders and the top 10 common shareholders holding non-restricted shares did not conduct the agreedrepurchase transaction during the reporting period.
IV. Shareholding Change of the Directors, Supervisors and Senior Executives
? Applicable □ Not-applicable
| Name | Position | Position status | Number of shares held at the beginning of the period (share) | Number of increased shares in the current period (share) | Number of decreased shares in the current 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 in the current period (share) | Number of restricted stocks granted at the end of the period (share) |
| Su Xianze | Director | On-service | 273,451 | 0 | 68,363 | 205,088 | 0 | 0 | 0 |
| Cheung Kwok Wah | General Manager | On-service | 142,000 | 0 | 0 | 142,000 | 142,000 | 0 | 112,000 |
| Xu Bo | Chief Financial Officer | On-service | 189,615 | 0 | 28,004 | 161,611 | 103,000 | 0 | 80,500 |
| Ye Jide | Vice General Manager, Board | On-service | 65,357 | 0 | 16,339 | 49,018 | 41,000 | 0 | 31,000 |
| Secretary | |||||||||
| Total | -- | -- | 670,423 | 0 | 112,706 | 557,717 | 286,000 | 0 | 223,500 |
V. Change Condition of Controlling Shareholders and Actual ControllersChange of controlling shareholders during the reporting period
□ Applicable ? Not-applicable
No change of controlling shareholders during the reporting period.Change of actual controllers during the reporting period
□ Applicable ? Not-applicable
No change of actual controllers during the reporting period.
SECTION VIII INFORMATION ON PREFERRED SHARE
□ Applicable ? Not-applicable
No preferred share existed during the reporting period.
SECTION IX BONDS
□ Applicable ? Not-applicable
SECTION X FINANCIAL REPORT
I. Audit Report
Whether the semiannual report has been audited.
□ Yes ? No
The Company's semiannual financial report has not been audited.II. Financial Statements
Unit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
June 30, 2024
Unit: RMB
| Item | Closing balance | Opening balance |
| Current assets: | ||
| Monetary capital | 1,994,094,960.25 | 3,548,277,442.44 |
| Settlement reserve | ||
| Loans to other banks | ||
| Transactional financial assets | 180,164,631.01 | 351,137,787.54 |
| Derivative financial assets | ||
| Notes receivable | 11,404,422.19 | 15,311,935.98 |
| Accounts receivable | 3,279,868,209.80 | 2,858,247,356.03 |
| Receivables financing | 193,637,531.38 | 363,532,765.35 |
| Advance payment | 203,297,876.22 | 193,169,455.51 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserve receivable | ||
| Other receivables | 20,572,845.75 | 16,126,721.38 |
| Including: interest receivable | ||
| Dividend receivable | ||
| Reverse-REPO financial assets | ||
| Inventories | 1,991,855,309.66 | 2,262,683,387.31 |
| Including: Data resource | ||
| Contract assets | ||
| Held-for-sale assets |
| Non-current assets due within one year | 485,691,958.90 | 285,783,958.92 |
| Other current assets | 136,145,137.64 | 142,423,696.22 |
| Total current assets | 8,496,732,882.80 | 10,036,694,506.68 |
| Non-current assets: | ||
| Loans and advances granted | ||
| Debt investment | ||
| Other debt investment | 229,436,821.90 | 665,522,383.56 |
| Long-term receivables | ||
| Long-term equity investment | 60,958,242.27 | 61,678,984.35 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 1,188,793,243.58 | 1,243,210,689.64 |
| Construction in progress | 69,151,667.36 | 26,862,380.61 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 202,864,225.37 | 223,503,573.14 |
| Intangible assets | 417,024,637.16 | 428,978,842.72 |
| Including: Data resource | ||
| Development expenditures | ||
| Including: Data resource | ||
| Goodwill | ||
| Long-term unamortized expenses | ||
| Deferred income tax assets | 437,848,496.35 | 420,252,246.30 |
| Other non-current assets | ||
| Total non-current assets | 2,606,077,333.99 | 3,070,009,100.32 |
| Total assets | 11,102,810,216.79 | 13,106,703,607.00 |
| Current liabilities: | ||
| Short-term borrowings | 199,065,687.57 | 199,741,167.36 |
| Central bank loan | ||
| Loans from other banks | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 1,415,650,000.00 | 1,235,000,000.00 |
| Accounts payable | 3,254,803,073.88 | 3,205,607,853.18 |
| Advance receipt | ||
| Contract liabilities | 219,210,138.94 | 862,706,076.18 |
| Proceeds from sale of repurchase financial assets | ||
| Deposit taken and interbank deposit | ||
| Proceeds from security transaction agency | ||
| Proceeds from security underwriting agency | ||
| Employee remuneration payable | 257,217,660.22 | 332,138,705.28 |
| Taxes payable | 180,676,801.15 | 346,462,733.51 |
| Other payables | 131,222,347.65 | 147,617,550.27 |
| Including: Interest payable | ||
| Dividend payable | ||
| Handling fee and commission payable | ||
| Reinsurance accounts payable | ||
| Held-for-sale liabilities | ||
| Non-current liabilities due within one year | 48,284,181.59 | 47,568,255.43 |
| Other current liabilities | 59,451,694.32 | 147,652,214.40 |
| Total current liabilities | 5,765,581,585.32 | 6,524,494,555.61 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Lease obligation | 156,977,849.58 | 177,281,125.36 |
| Long-term payables | ||
| Long-term employee remuneration payable | 31,420,092.66 | 15,836,573.16 |
| Estimated liabilities | 6,590,495.50 | 7,258,295.50 |
| Deferred incomes | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 194,988,437.74 | 200,375,994.02 |
| Total liabilities | 5,960,570,023.06 | 6,724,870,549.63 |
| Owners' equities: | ||
| Share capital | 801,558,657.00 | 806,708,657.00 |
| Other equity instruments |
| Including: Preferred share | ||
| Perpetual bond | ||
| Capital reserve | 179,823,947.06 | 173,110,627.02 |
| Minus: treasury share | 235,152,830.25 | 488,057,333.76 |
| Other comprehensive incomes | -30,337,791.30 | -19,176,454.59 |
| Special reserve | ||
| Surplus reserve | 115,870,910.37 | 355,939,901.82 |
| General risk reserve | ||
| Undistributed profit | 4,274,758,119.60 | 5,516,807,622.62 |
| Total owners' equities belonging to parent company | 5,106,521,012.48 | 6,345,333,020.11 |
| Minority shareholders' equities | 35,719,181.25 | 36,500,037.26 |
| Total owners' equities | 5,142,240,193.73 | 6,381,833,057.37 |
| Total liabilities and owners' equities | 11,102,810,216.79 | 13,106,703,607.00 |
Legal representative: Thierry de LA TOUR D'ARTAISE Person in charge of accounting: Xu Bo Person in charge of accountingdepartment: Xu Bo
2. Balance sheet of parent company
Unit: RMB
| Item | Closing balance | Opening balance |
| Current assets: | ||
| Monetary capital | 679,383,633.86 | 1,992,971,901.60 |
| Transactional financial assets | 100,095,631.95 | 250,544,611.01 |
| Derivative financial assets | ||
| Notes receivable | 67,100.00 | 400,000.00 |
| Accounts receivable | 652,066,286.26 | 624,130,389.56 |
| Receivables financing | ||
| Advance payment | 22,772,374.78 | 16,615,946.99 |
| Other receivables | 621,669,532.19 | 674,127,502.50 |
| Including: interest receivable | ||
| Dividend receivable | ||
| Inventories | 185,178,096.49 | 145,018,340.32 |
| Including: Data resource | ||
| Contract assets | ||
| Held-for-sale assets | ||
| Non-current assets due within one year | 208,315,863.02 | |
| Other current assets | 27,435,534.47 | 19,163,058.36 |
| Total current assets | 2,288,668,190.00 | 3,931,287,613.36 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | 20,672,657.53 | |
| Long-term receivables | ||
| Long-term equity investment | 2,850,801,729.46 | 2,848,631,066.61 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 132,173,404.55 | 142,355,870.24 |
| Construction in progress | 508,356.64 | 973,451.33 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 3,134,642.28 | 3,583,014.87 |
| Intangible assets | 67,607,540.97 | 72,474,395.25 |
| Including: Data resource | ||
| Development expenditures | ||
| Including: Data resource | ||
| Goodwill | ||
| Long-term unamortized expenses | ||
| Deferred income tax assets | 27,967,861.04 | 25,592,220.27 |
| Other non-current assets | ||
| Total non-current assets | 3,102,866,192.47 | 3,093,610,018.57 |
| Total assets | 5,391,534,382.47 | 7,024,897,631.93 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 33,950,000.00 | |
| Accounts payable | 207,959,391.77 | 211,009,320.51 |
| Advance receipt | ||
| Contract liabilities | 4,997,556.65 | 1,702,589.31 |
| Employee remuneration payable | 41,212,755.52 | 52,532,428.56 |
| Taxes payable | 15,548,095.94 | 54,783,273.55 |
| Other payables | 2,446,314,120.56 | 1,905,723,034.41 |
| Including: Interest payable | ||
| Dividend payable | ||
| Held-for-sale liabilities | ||
| Non-current liabilities due within one year | 1,044,513.30 | 965,476.36 |
| Other current liabilities | 98,585.00 | 462,826.72 |
| Total current liabilities | 2,717,175,018.74 | 2,261,128,949.42 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Lease obligation | 2,083,779.33 | 2,369,608.01 |
| Long-term payables | ||
| Long-term employee remuneration payable | 14,785,891.69 | 7,212,613.48 |
| Estimated liabilities | ||
| Deferred incomes | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 16,869,671.02 | 9,582,221.49 |
| Total liabilities | 2,734,044,689.76 | 2,270,711,170.91 |
| Owners' equities: | ||
| Share capital | 801,558,657.00 | 806,708,657.00 |
| Other equity instruments | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Capital reserve | 256,584,087.96 | 249,621,368.24 |
| Minus: treasury share | 235,152,830.25 | 488,057,333.76 |
| Other comprehensive incomes | ||
| Special reserve | ||
| Surplus reserve | 163,285,337.05 | 403,354,328.50 |
| Undistributed profit | 1,671,214,440.95 | 3,782,559,441.04 |
| Total owners' equities | 2,657,489,692.71 | 4,754,186,461.02 |
| Total liabilities and owners' equities | 5,391,534,382.47 | 7,024,897,631.93 |
3. Consolidated profit statement
Unit: RMB
| Item | Semiannual period in 2024 | Semiannual period in 2023 |
| I. Total Operating Incomes | 10,964,777,968.45 | 9,982,616,440.73 |
| Including: Operating income | 10,964,777,968.45 | 9,982,616,440.73 |
| Interest revenues | ||
| Premium earned | ||
| Revenue from handling fees and commissions | ||
| II. Total Operating Costs | 9,832,752,716.56 | 8,925,480,649.92 |
| Including: Operating cost | 8,289,510,974.07 | 7,444,829,256.71 |
| Interest expense | ||
| Expense of handling fees and commissions | ||
| Surrender value | ||
| Net payment for insurance claims | ||
| Net amount of withdrawn reserve fund for insured liability | ||
| Policy dividend expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 62,873,462.07 | 61,085,709.24 |
| Sales expenses | 1,138,911,660.13 | 1,098,400,634.74 |
| Administrative expenses | 194,416,893.38 | 189,032,788.40 |
| R&D expenses | 204,504,710.21 | 174,383,802.42 |
| Financial expenses | -57,464,983.30 | -42,251,541.59 |
| Including: interest expenses | 7,397,414.94 | 7,200,648.89 |
| Interest revenues | 53,980,532.58 | 49,382,432.80 |
| Plus: other incomes | 40,169,658.31 | 30,211,321.84 |
| Investment income ("-" for loss) | 16,336,567.86 | 31,013,219.53 |
| Including: investment income on associated enterprise and joint venture | -705,587.15 | -460,529.47 |
| Income from derecognition of financial assets measured at amortized cost | ||
| Exchange gain ("-" for loss) | ||
| Net exposure hedging gains ("-" for loss) | ||
| Gains from changes in fair value ("-" for loss) | 164,631.01 | 129,103.13 |
| Credit impairment loss ("-" for loss) | -16,494,532.64 | -13,035,606.89 |
| Asset impairment loss ("-" for loss) | -933,627.88 | -5,771,681.15 |
| Assets disposal income ("-" for loss) | -1,320,658.00 | -997,982.47 |
| III. Operating Profit ("-" for Loss) | 1,169,947,290.55 | 1,098,684,164.80 |
| Plus: Non-operating income | 3,690,918.17 | 1,689,086.57 |
| Minus: Non-operating expense | 2,408,825.95 | 2,243,477.16 |
| IV. Total Profit ("-" for Total Loss) | 1,171,229,382.77 | 1,098,129,774.21 |
| Minus: Income tax expenses | 231,061,024.52 | 218,895,998.85 |
| V. Net Profit ("-" for Net Loss) | 940,168,358.25 | 879,233,775.36 |
| (I) By business continuity | ||
| 1. Net profit under continuing operation ("-" for net loss) | 940,168,358.25 | 879,233,775.36 |
| 2. Net profit under discontinuing operation ("-" for net loss) | ||
| (II) By ownership | ||
| 1. Net profit attributable to the shareholders of the parent company ("-" for net loss) | 940,593,117.65 | 880,618,279.78 |
| 2. Minority shareholders' profit and loss ("-" for net loss) | -424,759.40 | -1,384,504.42 |
| VI. After-tax Net Amount of Other Comprehensive Incomes | -11,517,433.32 | 17,969,332.42 |
| After-tax net amount of other comprehensive income belonging to the owners of parent company | -11,161,336.71 | 17,051,537.83 |
| (I) Other comprehensive incomes that cannot be reclassified into profit and loss | ||
| 1. Remeasured amount of changes in defined benefit plan | ||
| 2. Other comprehensive incomes that cannot be transferred to gain and loss under the equity method | ||
| 3. Changes in the fair value of other equity instrument investments | ||
| 4. Changes in the fair value of the Company's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that can be reclassified into profit and loss | -11,161,336.71 | 17,051,537.83 |
| 1. Other comprehensive incomes that can be transferred to gain and loss under the equity method | ||
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Credit impairment provision for other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Conversion difference in foreign currency financial statement | -11,161,336.71 | 17,051,537.83 |
| 7. Others | ||
| After-tax net amount of other comprehensive incomes attributable to minority shareholders | -356,096.61 | 917,794.59 |
| VII. Total Comprehensive Incomes | 928,650,924.93 | 897,203,107.78 |
| Total comprehensive incomes attributable to owners of parent company | 929,431,780.94 | 897,669,817.61 |
| Total comprehensive incomes attributable to minority shareholders | -780,856.01 | -466,709.83 |
| VIII. Earnings Per Share: |
| (I) Basic earnings per share | 1.181 | 1.097 |
| (II) Diluted earnings per share | 1.181 | 1.095 |
For the enterprise merger under the same control in the current period, the net profit realized by the merged party before mergerwas RMB 0, and the net profit realized by the merged party during the prior period was RMB 0.Legal representative: Thierry de LA TOUR D'ARTAISE Person in charge of accounting: Xu Bo Person in charge of accountingdepartment: Xu Bo
4. Profit statement of the parent company
Unit: RMB
| Item | Semiannual period in 2024 | Semiannual period in 2023 |
| I. Operating Incomes | 1,382,747,931.38 | 1,194,339,510.40 |
| Minus: Operating cost | 1,222,405,392.74 | 1,005,374,520.95 |
| Taxes and surcharges | 5,620,347.12 | 6,391,944.74 |
| Sales expenses | 18,767,270.13 | 15,107,839.17 |
| Administrative expenses | 76,890,166.72 | 64,044,074.29 |
| R&D expenses | 4,439,247.54 | 2,004,150.57 |
| Financial expenses | -38,655,392.70 | -32,823,697.01 |
| Including: interest expenses | 79,770.88 | 74,956.71 |
| Interest revenues | 32,934,074.79 | 25,712,716.21 |
| Plus: other incomes | 465,330.54 | 3,527,610.88 |
| Investment income ("-" for loss) | 3,855,999.30 | 11,840,400.25 |
| Including: investment income on associated enterprise and joint venture | -705,587.15 | -460,529.47 |
| Income from derecognition of financial assets measured by amortized cost ("-" for loss) | ||
| Net exposure hedging gains ("-" for loss) | ||
| Gains from changes in fair value ("-" for loss) | 95,631.95 | 129,103.13 |
| Credit impairment loss ("-" for loss) | -1,973,393.91 | -2,598,181.78 |
| Asset impairment loss ("-" for loss) | -1,413,262.79 | -299,930.56 |
| Assets disposal income ("-" for loss) | 135,792.11 | 95,194.01 |
| II. Operating Profit ("-" for Loss) | 94,446,997.03 | 146,934,873.62 |
| Plus: Non-operating income | 1,443,710.40 | 45,121.42 |
| Minus: Non-operating expense | 1,491,388.60 | 1,312,764.27 |
| III. Total Profit ("-" for Total Loss) | 94,399,318.83 | 145,667,230.77 |
| Minus: Income tax expenses | 23,101,698.25 | 33,221,156.34 |
| IV. Net Profit ("-" for Net Loss) | 71,297,620.58 | 112,446,074.43 |
| (I) Net profit under continuing operation ("-" for net loss) | 71,297,620.58 | 112,446,074.43 |
| (II) Net profit under discontinuing operation ("-" for net loss) | ||
| V. After-tax Net Amount of Other Comprehensive Incomes | ||
| (I) Other comprehensive incomes that cannot be reclassified into profit and loss | ||
| 1. Remeasured amount of changes in defined benefit plan | ||
| 2. Other comprehensive incomes that cannot be transferred to gain and loss under the equity method | ||
| 3. Changes in the fair value of other equity instrument investments | ||
| 4. Changes in the fair value of the Company's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that can be reclassified into profit and loss | ||
| 1. Other comprehensive incomes that can be transferred to gain and loss under the equity method | ||
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Credit impairment provision for other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Conversion difference in foreign currency financial statement | ||
| 7. Others | ||
| VI. Total Comprehensive Incomes | 71,297,620.58 | 112,446,074.43 |
| VII. Earnings Per Share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated cash flow statement
Unit: RMB
| Item | Semiannual period in 2024 | Semiannual period in 2023 |
| I. Cash Flows from Operating Activities: | ||
| Cash received from sales of commodities or rendering of services | 8,765,885,030.93 | 7,924,920,392.30 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of central bank loans | ||
| Net increase of loans from other financial institutions | ||
| Cash received from original insurance contract premium | ||
| Net cash received from reinsurance | ||
| Net increase of policy-holder deposit and investment | ||
| Cash receipts from interests, handling fees and commissions |
| Net increase of loans from other banks | ||
| Net increase of repurchase capital | ||
| Net cash from security transaction agency | ||
| Tax refund received | 251,971,215.79 | 131,101,803.34 |
| Other cash receipts related to operating activities | 62,494,211.70 | 57,545,486.47 |
| Subtotal of cash inflows from operating activities | 9,080,350,458.42 | 8,113,567,682.11 |
| Cash payment for purchasing commodities and receiving services | 5,455,884,638.55 | 4,978,905,125.78 |
| Net increase of customer loans and advances | ||
| Net increase of central bank deposit and interbank deposit | ||
| Cash payment for insurance indemnities of original insurance contracts | ||
| Net increase of loans to other banks | ||
| Cash payment for interests, handling fees and commissions | ||
| Cash payment of policy dividend | ||
| Cash paid to and for employees | 1,040,161,140.75 | 871,059,709.61 |
| Taxes paid | 730,898,645.07 | 576,347,884.12 |
| Other cash expenses related to operating activities | 1,304,881,569.24 | 1,132,214,451.48 |
| Subtotal of cash outflows from operating activities | 8,531,825,993.61 | 7,558,527,170.99 |
| Net cash flows from operating activities | 548,524,464.81 | 555,040,511.12 |
| II. Net Cash Flows from Investing Activities: | ||
| Cash received from return of investments | ||
| Cash received from investment incomes | 56,035,340.47 | 53,860,834.80 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 1,900.00 | |
| Net cash receipts from disposal of subsidiaries and other business units | ||
| Other cash receipts related to investing activities | 2,200,000,000.00 | 2,647,094,578.70 |
| Subtotal of cash inflows from investing activities | 2,256,035,340.47 | 2,700,957,313.50 |
| Net cash paid for the construction of fixed assets, intangible assets and other long-term assets | 85,392,700.87 | 73,784,894.56 |
| Cash paid for investment | ||
| Net increase of pledge loans | ||
| Net cash paid for acquiring subsidiaries and other business units | ||
| Other cash payments related to investing activities | 260,000,000.00 | 1,540,000,000.00 |
| Subtotal of cash outflows from investing activities | 345,392,700.87 | 1,613,784,894.56 |
| Net cash flows from investing activities | 1,910,642,639.60 | 1,087,172,418.94 |
| III. Net Cash Flows from Financing Activities: | ||
| Cash from absorbing investments |
| Including: cash received by subsidiaries from minority shareholder investment | ||
| Cash received from obtaining borrowings | 198,257,000.00 | |
| Other cash receipts related to financing activities | 79,000.00 | |
| Subtotal of cash inflows from financing activities | 198,257,000.00 | 79,000.00 |
| Cash paid for debt repayment | 200,000,000.00 | |
| Cash paid for distribution of dividends or profits or for payment of interests | 2,175,512,858.61 | 2,439,504,228.21 |
| Including: dividends or profits paid by subsidiaries to minority shareholders | ||
| Other cash payments related to financing activities | 23,393,284.53 | 263,071,559.40 |
| Subtotal of cash outflows from financing activities | 2,398,906,143.14 | 2,702,575,787.61 |
| Net cash flows from financing activities | -2,200,649,143.14 | -2,702,496,787.61 |
| IV. Impact of Change in Exchange Rate on Cash and Cash Equivalents | 4,300,795.30 | 8,570,176.47 |
| V. Net Increase in Cash and Cash Equivalents | 262,818,756.57 | -1,051,713,681.08 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 1,405,752,936.36 | 2,395,932,752.38 |
| VI. Balance of Cash and Cash Equivalents at the End of the Period | 1,668,571,692.93 | 1,344,219,071.30 |
6. Cash flow statement of parent company
Unit: RMB
| Item | Semiannual period in 2024 | Semiannual period in 2023 |
| I. Cash Flows from Operating Activities: | ||
| Cash received from sales of commodities or rendering of services | 1,247,199,054.55 | 968,764,013.06 |
| Tax refund received | 96,971,620.67 | 52,436,667.54 |
| Other cash receipts related to operating activities | 25,231,429.56 | 18,459,582.37 |
| Subtotal of cash inflows from operating activities | 1,369,402,104.78 | 1,039,660,262.97 |
| Cash payment for purchasing commodities and receiving services | 1,196,059,089.13 | 783,891,523.17 |
| Cash paid to and for employees | 114,388,017.61 | 89,142,331.41 |
| Taxes paid | 72,222,198.39 | 28,289,765.89 |
| Other cash expenses related to operating activities | 70,371,621.82 | 50,106,557.48 |
| Subtotal of cash outflows from operating activities | 1,453,040,926.95 | 951,430,177.95 |
| Net cash flows from operating activities | -83,638,822.17 | 88,230,085.02 |
| II. Net Cash Flows from Investing Activities: | ||
| Cash received from return of investments | ||
| Cash received from investment incomes | 37,841,364.97 | 31,219,971.79 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash receipts from disposal of subsidiaries and other |
| business units | ||
| Other cash receipts related to investing activities | 1,440,000,000.00 | 1,350,000,000.00 |
| Subtotal of cash inflows from investing activities | 1,477,841,364.97 | 1,381,219,971.79 |
| Net cash paid for the construction of fixed assets, intangible assets and other long-term assets | 8,974,479.83 | 10,814,471.93 |
| Cash paid for investment | ||
| Net cash paid for acquiring subsidiaries and other business units | ||
| Other cash payments related to investing activities | 200,051,289.70 | 892,817,724.85 |
| Subtotal of cash outflows from investing activities | 209,025,769.53 | 903,632,196.78 |
| Net cash flows from investing activities | 1,268,815,595.44 | 477,587,775.01 |
| III. Net Cash Flows from Financing Activities: | ||
| Cash from absorbing investments | ||
| Cash received from obtaining borrowings | ||
| Other cash receipts related to financing activities | 678,196,836.22 | 1,650,034,224.45 |
| Subtotal of cash inflows from financing activities | 678,196,836.22 | 1,650,034,224.45 |
| Cash paid for debt repayment | ||
| Cash paid for distribution of dividends or profits or for payment of interests | 2,175,512,858.61 | 2,439,504,228.21 |
| Other cash payments related to financing activities | 262,785.24 | 230,282,075.87 |
| Subtotal of cash outflows from financing activities | 2,175,775,643.85 | 2,669,786,304.08 |
| Net cash flows from financing activities | -1,497,578,807.63 | -1,019,752,079.63 |
| IV. Impact of Change in Exchange Rate on Cash and Cash Equivalents | 4,215,136.49 | -26,143.91 |
| V. Net Increase in Cash and Cash Equivalents | -308,186,897.87 | -453,960,363.51 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 987,570,531.73 | 1,083,953,956.62 |
| VI. Balance of Cash and Cash Equivalents at the End of the Period | 679,383,633.86 | 629,993,593.11 |
7. Statement of Changes in Consolidated Owners' Equities
Amount in the current period
Unit: RMB
| Item | Semiannual period in 2024 | ||||||||||||||
| Owners' equities belonging to parent company | Minority shareholders' equities | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury share | Other comprehensive incomes | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
| I. Closing Balance of Last Year | 806,708,657.00 | 173,110,627.02 | 488,057,333.76 | -19,176,454.59 | 355,939,901.82 | 5,516,807,622.62 | 6,345,333,020.11 | 36,500,037.26 | 6,381,833,057.37 | ||||||
| Plus: changes of | |||||||||||||||
| accounting policies | |||||||||||||||
| Error correction of prior period | |||||||||||||||
| Others | |||||||||||||||
| II. Opening Balance of Current Year | 806,708,657.00 | 173,110,627.02 | 488,057,333.76 | -19,176,454.59 | 355,939,901.82 | 5,516,807,622.62 | 6,345,333,020.11 | 36,500,037.26 | 6,381,833,057.37 | ||||||
| III. Current Period Increase ("-" for Decrease) | -5,150,000.00 | 6,713,320.04 | -252,904,503.51 | -11,161,336.71 | -240,068,991.45 | -1,242,049,503.02 | -1,238,812,007.63 | -780,856.01 | -1,239,592,863.64 | ||||||
| (I) Total of comprehensive incomes | -11,161,336.71 | 940,593,117.65 | 929,431,780.94 | -780,856.01 | 928,650,924.93 | ||||||||||
| (II) Capital invested and reduced by owners | -5,150,000.00 | 6,713,320.04 | -252,904,503.51 | -247,198,753.51 | 7,269,070.04 | 7,269,070.04 | |||||||||
| 1. Common shares invested by owners | |||||||||||||||
| 2. Capital invested by other equity instrument holders | |||||||||||||||
| 3. Amount of share-based payment included into owners' equities | 6,713,320.04 | -555,750.00 | 7,269,070.04 | 7,269,070.04 | |||||||||||
| 4. Others | -5,150,000.00 | -252,348,753.51 | -247,198,753.51 | ||||||||||||
| (III) Profit distribution | 7,129,762.06 | -2,182,642,620.67 | -2,175,512,858.61 | -2,175,512,858.61 | |||||||||||
| 1. Appropriation of surplus reserve | 7,129,762.06 | -7,129,762.06 | |||||||||||||
| 2. |
| Appropriation of general risk reserve | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -2,175,512,858.61 | -2,175,512,858.61 | -2,175,512,858.61 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-over within owners' equities | |||||||||||||||
| 1. Transfer of capital reserve to capital (or share capital) | |||||||||||||||
| 2. Transfer of surplus reserve to capital (or share capital) | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Retained earnings after carrying over amount of changes in defined benefit plan | |||||||||||||||
| 5. Retained earnings after carrying over other comprehensive incomes | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Appropriation of |
| current period | |||||||||||||||
| 2. Application of current period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Closing Balance of Current Period | 801,558,657.00 | 179,823,947.06 | 235,152,830.25 | -30,337,791.30 | 115,870,910.37 | 4,274,758,119.60 | 5,106,521,012.48 | 35,719,181.25 | 5,142,240,193.73 |
Amount of last year
Unit: RMB
| Item | Semiannual period in 2023 | ||||||||||||||
| Owners' equities belonging to parent company | Minority shareholders' equities | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury share | Other comprehensive incomes | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
| I. Closing Balance of Last Year | 808,654,476.00 | 125,368,989.44 | 99,724,823.49 | -20,454,823.26 | 356,924,811.32 | 5,865,316,233.53 | 7,036,084,863.54 | 36,605,324.74 | 7,072,690,188.28 | ||||||
| Plus: changes of accounting policies | |||||||||||||||
| Error correction of prior period | |||||||||||||||
| Others | |||||||||||||||
| II. Opening Balance of Current Year | 808,654,476.00 | 125,368,989.44 | 99,724,823.49 | -20,454,823.26 | 356,924,811.32 | 5,865,316,233.53 | 7,036,084,863.54 | 36,605,324.74 | 7,072,690,188.28 | ||||||
| III. Current Period Increase ("-" for Decrease) | -1,945,819.00 | 26,960,674.13 | 138,472,606.38 | 17,051,537.83 | -74,841,171.80 | -1,573,832,101.75 | -1,745,079,486.97 | -466,709.83 | -1,745,546,196.80 | ||||||
| (I) Total of comprehensive incomes | 17,051,537.83 | 880,618,279.78 | 897,669,817.61 | -466,709.83 | 897,203,107.78 | ||||||||||
| (II) Capital invested and reduced by owners | -1,945,819.00 | 26,960,674.13 | -91,733,144.12 | -86,136,735.12 | -3,650,590.00 | 26,960,674.13 | 26,960,674.13 | ||||||||
| 1. Common shares invested by owners | |||||||||||||||
| 2. Capital invested by other equity instrument holders | |||||||||||||||
| 3. Amount of share-based payment included into owners' equities | -75,750.00 | 26,960,674.13 | -3,726,340.00 | -3,650,590.00 | 26,960,674.13 | 26,960,674.13 | |||||||||
| 4. Others | -1,870,069.00 | -88,006,804.12 | -86,136,735.12 | ||||||||||||
| (III) Profit distribution | 11,295,563.32 | -2,450,799,791.53 | -2,439,504,228.21 | -2,439,504,228.21 | |||||||||||
| 1. Appropriation of surplus reserve | 11,295,563.32 | -11,295,563.32 | |||||||||||||
| 2. Appropriation of general risk reserve | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -2,439,504,228.21 | -2,439,504,228.21 | -2,439,504,228.21 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-over |
| within owners' equities | |||||||||||||||
| 1. Transfer of capital reserve to capital (or share capital) | |||||||||||||||
| 2. Transfer of surplus reserve to capital (or share capital) | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Retained earnings after carrying over amount of changes in defined benefit plan | |||||||||||||||
| 5. Retained earnings after carrying over other comprehensive incomes | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Appropriation of current period | |||||||||||||||
| 2. Application of current |
| period | |||||||||||||||
| (VI) Others | 230,205,750.50 | -230,205,750.50 | -230,205,750.50 | ||||||||||||
| IV. Closing Balance of Current Period | 806,708,657.00 | 152,329,663.57 | 238,197,429.87 | -3,403,285.43 | 282,083,639.52 | 4,291,484,131.78 | 5,291,005,376.57 | 36,138,614.91 | 5,327,143,991.48 |
8. Statement of Changes in Owners' Equities of the Parent Company
Amount in the current period
Unit: RMB
| Item | Semiannual period in 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury share | Other comprehensive incomes | Special reserve | Surplus reserve | Undistributed profit | Others | Total owners' equities | |||
| Preferred share | Perpetual bond | Others | ||||||||||
| I. Closing Balance of Last Year | 806,708,657.00 | 249,621,368.24 | 488,057,333.76 | 403,354,328.50 | 3,782,559,441.04 | 4,754,186,461.02 | ||||||
| Plus: changes of accounting policies | ||||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of Current Year | 806,708,657.00 | 249,621,368.24 | 488,057,333.76 | 403,354,328.50 | 3,782,559,441.04 | 4,754,186,461.02 | ||||||
| III. Current Period Increase ("-" for Decrease) | -5,150,000.00 | 6,962,719.72 | -252,904,503.51 | -240,068,991.45 | -2,111,345,000.09 | -2,096,696,768.31 | ||||||
| (I) Total of comprehensive incomes | 71,297,620.58 | 71,297,620.58 | ||||||||||
| (II) Capital invested and reduced by owners | -5,150,000.00 | 6,962,719.72 | -252,904,503.51 | -247,198,753.51 | 7,518,469.72 | |||||||
| 1. Common shares invested by owners | ||||||||||||
| 2. Capital invested by other equity instrument holders | ||||||||||||
| 3. Amount of share-based payment included into owners' equities | 6,962,719.72 | -555,750.00 | 7,518,469.72 | |||||||||
| 4. Others | -5,150,000.00 | -252,348,753.51 | -247,198,753.51 | |||||||||
| (III) Profit distribution | 7,129,762.06 | -2,182,642,620.67 | -2,175,512,858.61 | |||||||||
| 1. Appropriation of | 7,129,762. | - | ||||||||||
| surplus reserve | 06 | 7,129,762.06 | ||||||||||
| 2. Distribution to owners (or shareholders) | -2,175,512,858.61 | -2,175,512,858.61 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-over within owners' equities | ||||||||||||
| 1. Transfer of capital reserve to capital (or share capital) | ||||||||||||
| 2. Transfer of surplus reserve to capital (or share capital) | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Retained earnings after carrying over amount of changes in defined benefit plan | ||||||||||||
| 5. Retained earnings after carrying over other comprehensive incomes | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Appropriation of current period | ||||||||||||
| 2. Application of current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Closing Balance of Current Period | 801,558,657.00 | 256,584,087.96 | 235,152,830.25 | 163,285,337.05 | 1,671,214,440.95 | 2,657,489,692.71 |
Amount of last year
Unit: RMB
| Item | Semiannual period in 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury share | Other comprehensive incomes | Special reserve | Surplus reserve | Undistributed profit | Others | Total owners' equities | |||
| Preferred share | Perpetual bond | Others | ||||||||||
| I. Closing Balance of Last Year | 808,654,476.00 | 202,697,741.40 | 99,724,823.49 | 404,339,238.00 | 4,331,212,701.66 | 5,647,179,333.57 | ||||||
| Plus: changes of accounting policies | ||||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of Current Year | 808,654,476.00 | 202,697,741.40 | 99,724,823.49 | 404,339,238.00 | 4,331,212,701.66 | 5,647,179,333.57 | ||||||
| III. Current Period Increase ("-" for Decrease) | -1,945,819.00 | 26,617,120.14 | 138,472,606.38 | -74,841,171.80 | -2,342,004,307.10 | -2,530,646,784.14 | ||||||
| (I) Total of comprehensive incomes | 112,446,074.43 | 112,446,074.43 | ||||||||||
| (II) Capital invested and reduced by owners | -1,945,819.00 | 26,617,120.14 | -91,733,144.12 | -86,136,735.12 | -3,650,590.00 | 26,617,120.14 | ||||||
| 1. Common shares invested by owners | ||||||||||||
| 2. Capital invested by other equity instrument holders | ||||||||||||
| 3. Amount of share-based payment included into owners' equities | -75,750.00 | 26,617,120.14 | -3,726,340.00 | -3,650,590.00 | 26,617,120.14 | |||||||
| 4. Others | -1,870,069.00 | -88,006,804.12 | -86,136,735.12 | |||||||||
| (III) Profit distribution | 11,295,563.32 | -2,450,799,791.53 | -2,439,504,228.21 | |||||||||
| 1. Appropriation of surplus reserve | 11,295,563.32 | -11,295,563.32 | ||||||||||
| 2. Distribution to owners (or shareholders) | -2,439,504,228.21 | -2,439,504,228.21 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-over within owners' equities | ||||||||||||
| 1. Transfer of capital reserve to capital (or share capital) | ||||||||||||
| 2. Transfer of surplus reserve to capital (or share capital) | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Retained earnings after carrying over amount of changes in defined benefit plan | ||||||||||||
| 5. Retained earnings after carrying over other comprehensive incomes | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Appropriation of current period |
| 2. Application of current period | ||||||||||||
| (VI) Others | 230,205,750.50 | -230,205,750.50 | ||||||||||
| IV. Closing Balance of Current Period | 806,708,657.00 | 229,314,861.54 | 238,197,429.87 | 329,498,066.20 | 1,989,208,394.56 | 3,116,532,549.43 |
III. Company Profile
Zhejiang Supor Co., Ltd. (hereinafter referred to as "the Company") is a limited liability company (by shares) transformed on anintegral basis from Zhejiang Supor Cookware Co., Ltd. under the approval of Leading Group for Enterprise Listing of the People'sGovernment of Zhejiang Province with No. ZSS [2000] 24 approval document. On November 10, 2000, the Company registered atZhejiang Administration for Industry and Commerce. Registered address: Yuhuan City, Zhejiang Province; head office address:
Hangzhou City, Zhejiang Province. The Company's parent company is SEB INTERNATIONALE S.A.S whose final parentcompany is SEB S.A. The Company has a corporate business license numbered 913300007046976861.
The Company and its subsidiaries (hereinafter referred to as "Supor") are mainly engaged in the R&D, production anddistribution of kitchen utensils, stainless steel products, daily hardware, small domestic appliances and cookware; products arecookware and small domestic appliances.
The financial statement was released after the approval of the Company's Board of Directors on August 30, 2024.
By June 30, 2024, there were altogether 20 subsidiaries included in the scope of consolidated financial statement. See Note X."Equity in Other Entities" for details.IV. Preparation Basis of the Financial Statements
1. Preparation basis
The financial statements of the Group are prepared based on the assumption of continuing operation and actual transactions anditems and in accordance with the Accounting Standard for Business Enterprises -- Basic Standard (Released CZBL No.33,Revised CZBL No.76) issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as the "Ministryof Finance"), and 42 specific accounting standards, guidelines for the application of Accounting Standards for BusinessEnterprises, interpretations to the Accounting Standards for Business Enterprises and other provisions released and revised on andafter February 15, 2006 (hereinafter referred to as Accounting Standards for Business Enterprises) and the disclosure provisions ofthe Regulations of Corporate Information Disclosure and Preparation by Companies Publicly Issuing Securities No.15 -- GeneralProvisions on Financial Reporting (Revised in 2023) of the China Securities Regulatory Commission.
According to the relevant regulations of the Accounting Standards for Business Enterprises, the Group's accounting is made onaccrual basis. Except for certain financial instruments, measurements in these financial statements are made on the basis ofhistorical cost. If an asset is impaired, corresponding impairment provision will be made in accordance with relevant regulations.
2. Continuing operation
The Company has the ability to continue operations for at least 12 months since the end of this reporting period, and there are noimportant matters affecting the ability to continue operations.
V. Important Accounting Policies and EstimatesPrompt for specific accounting policies and estimates:
Supor has formulated a number of specific accounting policies and estimates based on the actual characteristics of its productionand operation, as well as the relevant provisions of accounting standards for business enterprises.
When preparing the financial statement, the management layer of Supor was required to use estimation and hypothesis, whichwould have influences on the application of the accounting policies as well as the amounts of the assets, liabilities, revenues andcosts. The actual situation may differ from these estimates. The management of Supor has carried out continuous evaluation forjudgment involving critical assumption and uncertainties, and alteration influence of accounting estimate shall be confirmedduring the current period of alteration and future period. The major accounting estimates of Supor includes depreciation andamortization of fixed assets and intangible assets (refer to Note V, 17, and 20), impairment of various assets (refer to Note VII, 4,6, 8, 13, as well as Note XIX, 1 and 2), deferred income tax asset and deferred income tax liabilities (refer to Note VII, 17),disclosure of fair value (refer to Note XIII), and share-based payments (refer to Note XV).
1. Statement of abidance of the Accounting Standards for Business Enterprises
The financial statement conforms to the requirements of Accounting Standards for Business Enterprises issued by the Ministryof Finance and has reflected relevant information such as the consolidated financial conditions and financial conditions on June 30,2024, semiannual operating results and operating results, consolidated cash flow and cash flow in the half year of 2024 of theCompany and Supor on an authentic and intact basis. In addition, the financial statements of the Company and Supor conform tothe disclosure requirements of the Regulations of Corporate Information Disclosure and Preparation by Companies PubliclyIssuing Securities No. 15 -- General Provisions on Financial Reporting revised by the China Securities Regulatory Commission(hereinafter referred to as "CSRC") in 2023 and related financial statements and their notes.
2. Accounting period
The accounting period of Supor is divided into annual period and interim period; an interim period refers to a reporting periodwhich is shorter than a whole fiscal year. Supor takes calendar year as the fiscal year, i.e., from January 1 to December 31.
3. Operating cycle
The normal operating cycle means the period from the time when Supor purchases the assets used for processing to the time ofrealizing cash or cash equivalents. Supor takes 12 months as an operating cycle and uses it as a standard for classifying theliquidity of assets and liabilities.
4. Recording currency
RMB is used in the main economic environment in which the Company and its domestic subsidiaries operate and the Companyand its domestic subsidiaries use RMB as the recording currency. Recording currency for foreign subsidiaries of the Company isdetermined as VND, SGD and IDR separately based on the currency in main economic environment in which they operate. Suporuses RMB as the recording currency to prepare the financial statement.
5. Method for determining importance criteria and selection criteria
? Applicable □ Not-applicable
| Item | Importance criteria |
| Significant accounts receivable written off | 5% of total profit in the last year |
| Other important debt investment | |
| Important construction in progress | |
| Significant accounts payable with an age of more than one year | |
| Significant not wholly-owned subsidiaries | |
| Significant joint venture or associated enterprises |
6. Accounting treatment method for the enterprise merger under and not under the same controlEnterprise merger refers to the transaction or event of two or more separate enterprises combining into a reporting entity.Enterprise merger is divided into the enterprise merger under the same control and enterprise merger not under the same control.For transactions not under the same control, the purchasing party will consider whether to choose the simplified judgmentmethod of "concentration test" when judging whether the acquired asset portfolio constitutes a business. If the portfolio passes theconcentration test, it is judged that it does not constitute a business. Otherwise, it shall still be judged in line with businessconditions.When Supor acquires a group of assets or net assets that do not constitute a business, the purchase cost shall be allocated on thebasis of the relative fair value of the identifiable assets and liabilities acquired on the purchase date, and shall not be treated as perthe following accounting treatment methods for enterprise merger.
(1) Enterprise merger under the same control
If enterprises involved with merger are under the final control of the same party or same multiple parties before and after merger,and for a non-temporary period, then it belongs to an enterprise merger under the same control. The assets and liabilities obtainedin enterprise merger is measured based on the book value of the merging party in the consolidated financial statements of the finalcontrolling party on the merger date. As to the difference between the book value of net assets and the book value of mergerconsideration paid by it (or total amount of the face value of shares issued), the capital reserve (share capital premium) shall beadjusted correspondingly; the retained earnings will be adjusted as long as capital reserve (share capital premium) is insufficient tobe offset. The direct expenses incurred from enterprise merger shall be included into the current profits and losses at the time ofoccurrence. The merger date refers to the day when the merging party actually obtains the control rights of the merged party.
(2) Enterprise merger not under the same control
If enterprises involved with merger are not under the final control of the same party or same multiple parties before and aftermerger, then this is an enterprise merger not under the same control. For enterprise merger not under the same control, the partywhich has obtained the control rights for other combining enterprises on the purchase date will be considered as the purchasingparty, and other participating enterprise is the purchased party. The purchase date refers to the day when the purchasing partyobtains the control right over the purchased party.
As for enterprise merger not under the same control, the merger costs include the assets paid by the purchasing party, theliabilities accrued and assumed, as well as the fair value of equity securities issued for obtaining purchased party's control right onthe purchase date; the intermediary fees, such as auditing, legal service and evaluation and consulting, and other relatedadministrative expenses for the enterprise merger shall be included into the current profits and losses at the time of occurrence.Transaction cost of equity securities or debt securities issued by the purchasing party as merger consideration shall be includedinto initial recognition amount of the equity securities or debt securities. Contingent consideration involved shall be included into
the merger cost according to the fair value at the purchase date; if new or further proofs appearing within 12 months after thepurchase date show that the contingent consideration needs to be adjusted, the merger goodwill shall be adjusted correspondingly.The merger costs incurred by the purchasing party and the identifiable net assets obtained in the merger shall be measured at thefair value on the purchase date. The amount of the merger cost larger than the fair value of identifiable net assets of the purchasedparty acquired by it on the purchase date shall be recognized as goodwill. If the merger cost is lower than the fair value ofidentifiable net assets of the purchased party obtained during merging, the measurement of the identifiable assets of the purchasedparty obtained, liabilities or fair value of contingent liabilities and the merger costs shall be reviewed firstly. If the merger cost isstill lower than the fair value of identifiable net assets of the purchased party obtained during merger, the difference shall beincluded into the current profits and losses.If the deductible temporary difference of the purchased party gained by purchasing party fails to be confirmed on the purchasedate due to the inconformity of the recognition condition of deferred income tax assets, and in case new or further informationobtained indicates that the relevant conditions on the purchase date have existed within 12 months after the purchase date, and it ispredicted that the economic benefits brought by the purchased party from deductible temporary differences can be realized on thepurchase date, relevant deferred income tax assets shall be confirmed, at the same time, the goodwill shall be reduced; if thegoodwill is insufficient for offset, the differential part shall be confirmed as the current profits and losses; except for aboveconditions, in case the deferred income tax assets are confirmed to be related to the enterprise merger, they shall be included intothe current profits and losses.As for the enterprise merger not under the same control realized step by step through multiple transactions, it shall judge whetherthe multiple transactions belong to the "package deal" according to No. 5 Notice about Printing and Issuing Accounting Standardsfor Business Enterprises Explanation in Ministry of Finance (CK [2012] No. 19) and the judgment standard (refer to the Note V."7. Judgment criteria for control and preparation method for consolidated financial statements (2)") about "package deal" in Article51 of the Accounting Standards for Business Enterprises No. 33 -- Consolidated Financial Statement. If the multiple transactionsbelong to the "package deal", refer to the above descriptions of the part and Note V. "16. Long-term equity investment" to conductthe accounting treatment; for those not belonging to "package deal", it shall distinguish individual financial statements andconsolidated financial statements to conduct relevant accounting treatment.
The sum of book value of the purchased party's equity investment held prior to the purchase date and the newly investment coston the purchase date in individual financial statements shall be regarded as the initial investment cost of such investment; in casethat the equity of the purchased party held before the purchase date is involved in other comprehensive incomes, when disposingof the investment, other comprehensive income related shall be transferred to the current investment income.In consolidated financial statements, the equity of the purchased party held before the purchase date shall be measured againaccording to the fair value of the equity at the purchase date, and the difference between fair value and its book value shall beincluded into the current investment income; in case that equity of the purchased party held before the purchase date is involved inother comprehensive incomes, other comprehensive income related shall be transferred to the current investment income on thepurchase date.
7. Judgment criteria for control and preparation method for consolidated financial statements
(1) Principles for defining the scope of consolidated financial statements
The scope of the consolidated financial statements is control-based. Control refers to that Supor has the right in an investeewhich allows it to enjoy variable returns by participating relevant activities of such investee and to use such right to influence theamount of such returns. In determining whether Supor has control over an investee, Supor considers substantive rights related tothe investee (including substantive rights held by Supor itself and those held by other parties). The financial condition, operatingresults, and cash flows of the subsidiaries are included in the consolidated financial statements from the date control commences tothe date control ceases. The merger scope shall include the Company and all its subsidiaries, and "subsidiaries" refers to the bodiesunder the control of Supor.
Supor will re-evaluate the situation once the change in relevant facts and circumstances affects the factors involved in the abovedefinition of control.
(2) Preparation method for consolidated financial statements
From the date of obtaining actual control right of the subsidiaries' net assets and production operation decision, Supor will beginto include them into the merger scope; subsidiaries will not be included into the merger scope from the date when Supor loses theactual control right. As for the disposed subsidiaries, the operating results and cash flow before disposal date have been properlyincluded into the consolidated profit statement and consolidated cash flow statement; as for subsidiaries disposed in the currentperiod, the beginning amount of the consolidated balance sheet will not be adjusted. As for the subsidiary increased due to theenterprise merger not under the same control, its operating results and cash flow after the purchase date have been properlyincluded into the consolidated profit statement and consolidated cash flow statement, and the beginning amount and contrastamount of the consolidated financial statement shall not be adjusted. As for the subsidiary increased due to the enterprise mergerunder the same control and the merged party under consolidation by merger, the operating results and cash flow from thebeginning of the current period of the merger to the merger date have been properly included into the consolidated profit statementand the consolidated cash flow statement, and the contrast amount of the consolidated financial statement shall be adjustedsimultaneously.
When consolidated financial statements are prepared, in case the accounting policies or accounting periods employed by thesubsidiary and the Company are different, it's required to make necessary adjustment on the subsidiary's financial statementsaccording to the Company's accounting policy and accounting period. As to the subsidiary acquired by the enterprise merger notunder the same control, it's required to adjust its financial statements on the basis of fair value of identifiable net assets at thepurchase date.
All significant current balance and transaction and unrealized profits in the Group are offset in the preparation of consolidatedfinancial statement.
The shareholders' equities and current net profits or losses of subsidiaries that do not belong to the part owned by the Company,shall be separately listed in the shareholders' equities and minority shareholders' profit and loss in the consolidated financialstatement as the minority shareholders' equities and profits and losses. The share in the current net profit or loss of the subsidiarythat belongs to minority shareholders' equities shall be set out as "minority shareholders' profit and loss" under net profit in theconsolidated profit statement. In case the losses of the subsidiary shared by minority shareholders exceed the share that shall beenjoyed by minority shareholders in the subsidiary's shareholders' equities at the beginning of period, they shall be offset withminority shareholders' equities.
In case of losing the control right for the original subsidiary due to disposal of partial equity investment or other reasons, theresidual equity shall be measured again according to the fair value at the date when the control right is lost. The differencebetween the sum of the consideration acquired by equity disposal and the fair value of residual equity and the share of net assets ofthe original subsidiary that shall be enjoyed and is calculated continuously from the purchase date according to the originalshareholding ratio shall be included into the investment income of the current period when the control right is lost. As for othercomprehensive incomes which relate to the equity investment of the original subsidiaries, when the control right is lost, theaccounting treatment shall be carried out on the same basis as the subsidiary's direct disposal of relevant assets or liabilities.Thereafter, the residual equity of this part shall be further measured in accordance with Accounting Standards for BusinessEnterprises No. 2 -- Long-term Equity Investment or Accounting Standards for Business Enterprises No. 22 -- Recognition andMeasurement of Financial Instruments. See Note V. "16. Long-term equity investment" or Note V. "10. Financial instruments" fordetails.
If Supor disposes the equity investment of subsidiary step by step via multiple transactions until losing the control right, it isnecessary to distinguish whether transactions for disposal to the equity investment of subsidiary until losing the control rightbelong to the package deal. When the disposal of the articles, conditions and the economic impact of various transactions for theequity investment of the subsidiary is subject to one or more of the following conditions, it generally indicates that it shall conduct
accounting treatment by taking the multiple transactions as a package deal: ① These transactions are considered to be concludedat the same time or made in the case of considering mutual influence; ② These transactions as a whole can reach a completebusiness result; ③ The occurrence of a transaction depends on the occurrence of at least one other transaction; ④ One transactionalone is not economical, but when being considered together with other transactions, it is economical. If it is not package deal,every transaction will be conducted by the accounting treatment according to the following suitable principles, namely, "partiallydispose the long-term equity investment of subsidiary when the control right is not lost" (See Note V. "16. Long-term equityinvestment (2) (d)") and "lose the control right for the original subsidiary due to disposal of partial equity investment or otherreasons" (see previous paragraph) for details. If the disposal of transactions on subsidiaries' equity investments until loss of controlright is a package deal, they are regarded as a transaction that disposes the subsidiary and loses the control right; however, thedifference between each disposal price and the subsidiary's net asset share enjoyed corresponding to disposing investment beforeloss of control right shall be recognized as other comprehensive incomes in the consolidated financial statements, which will betransferred into the current investment profits and losses on investments of losing the control right when the control right is lost.
8. Determining standards for cash and cash equivalents
Cash and cash equivalents of Supor includes cash on hand and the deposit that can be used for making payment at any time aswell as investments that are held by Supor, have a short term (generally mature within 3 months since the purchase date) andstrong liquidity, can be converted into the cash of known amount easily, and have small risks in value change.
9. Foreign currency business and foreign currency statement conversion
(1) Conversion method for foreign currency transactions
After initial recognition, the foreign currency transactions occurring in Supor are converted into recording currency amounts atthe spot rate prevailing on the transaction date (usually the central parity of the exchange rate quoted on the day of issuance by thePeople's Bank of China, the same below).
(2) Conversion method for foreign currency monetary items and foreign currency non-monetary items
For the balance sheet date, the spot rate on the balance sheet date will be adopted in the conversion of the foreign currencymonetary items. In terms of the resulting exchange differences: ① The exchange difference of special foreign currency borrowingsrelated to acquiring and constructing assets which meet capitalization conditions is disposed on the principle of the capitalizationof borrowing expense; and ② foreign currency monetary items measured at the fair value with their changes included into othercomprehensive incomes, except that the exchange difference created by other book balance changes other than by amortized costs(including decrease in value) is included into other comprehensive incomes, are included into the current profits and losses.
As to foreign currency non-monetary items measured by historical cost, the amount in the recording currency converted at thespot rate on the transaction date is still employed for measurement; as to foreign currency non-monetary items measured by fairvalue, it's required to employ the spot rate at the fair value confirmation date for conversion, and the resulting exchange differencebelongs to the difference of equity instrument investment measured at the fair value with their changes included into othercomprehensive incomes, and is included into other comprehensive income or recognized as other comprehensive incomes; otherdifferences are included into current profits and losses.
(3) Conversion method for foreign currency financial statement
The foreign currency financial statement of overseas business is converted to RMB statement with the following method: theassets and liabilities in the balance sheet shall be converted based on the spot rate on the balance sheet date; as for shareholders'
equities, except the "undistributed profits", other items shall be converted by the spot rate on the date of occurrence. Items underincome and expense in the profit statement shall be translated according to the spot rate at the transaction date. The undistributedprofits at the beginning of the year is the year-end undistributed profit after conversion of last year; the period-end undistributedprofit is calculated and presented according to the profit distribution of each item after conversion; the balance of the total amountamong the assets and liabilities as well as shareholders' equities after conversion serves as "conversion difference in foreigncurrency statement" and is recognized as other comprehensive income; For disposal of overseas business and the loss of controlright, the conversion difference in foreign currency statement related to the overseas business and presented under theshareholders' equities in the balance sheet is transferred wholly or according to the disposal ratio of the overseas business into thecurrent disposal profits and losses.Foreign cash flows and cash flows of subsidiaries overseas are converted based on spot rate on the occurring date of cash flows.The influenced amount of changes in the exchange rate on cash is listed separately in the cash flow statement as an adjustmentitem.
The beginning amount and actual amount of the year shall be presented according to the amount after conversion of financialstatement of last year.
In case of loss of control right of overseas business due to disposal of Supor's entire owners' equities in overseas business, or thedisposal of partial equity investment or other reasons, the foreign currency conversion difference listed in the shareholders' equitiesitems in the balance sheet, related to the overseas business and attributable to owners' equities belonging to parent company shallbe totally converted into the current disposal profits and losses.
In case of decrease of the ratio of overseas business, but no loss of control right due to disposal of partial equity investment orother reasons, the conversion difference related to the disposal of part of related currency in the overseas business shall beattributable to the minority shareholders' equities, and not converted into the current profits and losses.
If there are any foreign currency monetary items that substantially constitute net investment in overseas businesses, the exchangedifference generated due to the exchange rate change in the consolidated financial statements shall be determined to othercomprehensive incomes as "conversion difference in foreign currency statements"; when disposing overseas business, it shall beincluded into the current disposal profits and losses.
10. Financial instruments
When Supor becomes one party of financial instrument contract, it's required to recognize financial assets or financial liabilities.
(1) Classification, recognition and measurement of financial assets
Based on the business mode for managing financial assets and the contractual cash flow characteristics of financial assets, Supordivides the financial assets into: financial assets measured by amortized cost, financial assets measured at the fair value with theirchanges included into other comprehensive incomes, financial assets measured at the fair value with their changes included intothe current profits and losses.
The business mode of the Company's management of financial assets means that how Supor manages its financial assets so as togenerate cash flows. Through business mode, it can be determined that whether the cash flow of financial assets managed bySupor is from the collection of contractual cash flow, sales of financial assets, or both. Supor, based on the objective fact andspecific business objective of financial asset management determined by key management personnel, makes decisions on thebusiness mode for managing financial assets.
Supor evaluates the contractual cash flow characteristic of financial assets to determine whether the contractual cash flowgenerated by the relevant financial assets on the specific date is only payment of principal and interests for outstanding principalamount. Wherein, the principal refers to the fair value of financial assets at initial recognition; interest includes consideration ofthe time value of money, the credit risk related to the outstanding principal amount for a specific period, and other basic borrowingrisks, costs, and profits. Furthermore, Supor evaluates the contract terms that are likely to cause changes in the distribution of time
or amount of the contractual cash flow of financial assets, to determine whether the terms satisfy the requirements of the abovecontractual cash flow characteristics.
Unless Supor changes its business mode for managing financial assets, all affected related financial assets are reclassified on thefirst day of the first reporting period after the change of business mode, otherwise, financial assets cannot be reclassified afterinitial recognition.Financial assets shall be measured by fair value during initial recognition. As to financial assets measured at the fair value withtheir changes included into the current profits and losses, related transaction cost shall be included into the current profits andlosses directly; as to other categories of financial assets, related transaction cost shall be included into initial recognition amount.Accounts receivable or notes receivable that are from sale of products or rendering of labors, and do not include or take intoaccount significant financing parts are taken as initial recognition amount by Supor based on the consideration amount that Suporis entitled to receive.(a) Financial assets measured by amortized costThe business mode of Supor to manage financial assets measured by amortized cost is aimed at receiving contractual cashflows; the contractual cash flow characteristics of such financial assets are consistent with basic loan arrangements, that is, cashflows generated at specific date are only payment of principal and interests for outstanding principal amount. Effective interestmethod is used by Supor to carry out subsequent measurement of such financial asset according to the amortized cost, and thegains or losses arising from amortization and impairment are included into the current profits and losses.(b) Financial assets measured at the fair value with their changes included into other comprehensive incomesThe business mode of Supor to manage such financial assets is aimed at receiving contractual cash flows as well as sales; thecontractual cash flow characteristics of such financial assets are consistent with basic loan arrangements. Supor measures suchfinancial assets measured at the fair value with their changes included into other comprehensive incomes, but impairment losses orgains, exchange profits and losses, and interest revenue calculated based on effective interest method are included into the currentprofits and losses. When the financial asset is derecognized, the accumulated gains or losses previously included into othercomprehensive income shall be transferred out of other comprehensive income and included into the current profits and losses.In addition, for investments in non-transactional equity instruments, Supor can irrevocably designate them as financial assetsmeasured at the fair value with their changes included into other comprehensive incomes upon initial recognition. The designationis made on a single investment basis, and the relevant investment meets the definition of equity instrument from the issuer's pointof view. Supor includes the related dividend income of such financial assets into the current profits and losses with the change infair value included into other comprehensive income. When the financial asset is derecognized, the accumulated gains or lossespreviously included into other comprehensive income shall be transferred out of other comprehensive income to retained earningsand not included into the current profits and losses.(c) Financial assets measured at the fair value with their changes included into the current profits and losses.Supor recognizes foregoing financial assets measured by amortized cost and that are not financial assets measured at the fairvalue with their changes included into other comprehensive incomes as financial assets measured at the fair value with theirchanges included into the current profits and losses. In addition, during initial recognition, in order to eliminate or significantlyreduce accounting mismatches, Supor designates part of the financial assets measured at the fair value with their changes includedinto the current profits and losses. As to such financial assets, subsequent measurement shall be carried out by Supor based on fairvalue, and the resulting gains or losses (including interest and dividend income) are included into current profits and losses, unlessthe financial asset is part of the hedging relationship.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities are classified as financial liabilities measured at the fair value with their changes included into the currentprofits and losses, financial guarantee liabilities and other financial liabilities upon initial recognition. As to financial liabilitiesmeasured at the fair value with their changes included into the current profits and losses, related transaction cost shall be included
into the current profits and losses directly; as to other financial liabilities, related transaction cost shall be included into initialrecognition amount.(a) Financial liabilities measured at the fair value with their changes included into the current profits and lossesFinancial liabilities measured at the fair value with their changes included into the current profits and losses include transactionalfinancial liabilities (including derivatives belonging to financial liabilities) and financial liabilities that are designated to bemeasured at fair value with changes included into the current profits and losses during initial recognition.
Transactional financial liabilities (including derivatives belonging to financial liabilities) are measured subsequently at fair valueand except for those related to hedge accounting, changes in fair value are included into the current profits and losses.For financial liabilities measured at the fair value with their changes included into the current profits and losses, changes in theirfair value caused by changes in Supor's own credit risk are included into other comprehensive income, and when such liabilitiesare stopped to be recognized, accumulated changes in their fair value caused by changes in Supor's own credit risk that is includedinto other comprehensive income are transferred to retained earnings. Other changes in fair value are included into current profitsand losses. If the treatment of impact of changes in credit risk of these financial liabilities in the above manner will cause orexpand accounting mismatches in profit or loss, Supor will include all gains or losses of such financial liabilities (including impactof changes in the Company's own credit risk) into the current profits and losses.(b) Financial guarantee liabilitiesA financial guarantee contract refers to a contract that requires Supor to pay a specific amount to the contract holder who hassuffered a loss when the specific debtor fails to pay the debt in accordance with the original or modified terms of the debtinstrument at maturity.After initial recognition, the income related to the financial guarantee contract is apportioned and included into the currentprofits and losses in accordance with the accounting policies mentioned in Note V. "27. Revenue". Financial guarantee liabilitiesare subsequently measured according to the higher of the loss provision amount determined according to the impairment principleof financial instruments and the balance of its initial recognition amount after deducting the accumulated amortization amount ofincome related to financial guarantee contracts.(c) Other financial liabilitiesIn addition to financial liabilities and financial guarantee contracts as a result of financial asset transfers that are not in line withderecognition condition or continuous involvement in transferred financial asset, other financial liabilities are classified asfinancial liabilities measured at amortized cost and measured subsequently at amortized cost, and gains or losses arising fromderecognition or amortization of such liabilities are included into the current profits and losses
(3) Recognition basis and measurement method of the transfer of financial assets
If financial assets meet one of the following conditions, derecognition of such financial assets will be carried out: ① thecontractual right to receive cash flow from the financial assets is terminated; ② the financial assets have been transferred andalmost all the risks and rewards in the ownership of the financial assets are transferred to the transferee; ③ the financial assetshave been transferred and, although the Group has neither transferred nor retained almost all risks and rewards in the ownership ofthe financial assets, it has waived its control over the financial assets.
If Supor neither transfers nor retains almost all the risks and rewards in the ownership of the financial assets and does notrelinquish control over the financial assets, the financial assets shall be recognized according to the degree of continuousinvolvement of the financial assets transferred, and the relevant liabilities shall be recognized accordingly. Degree of continuousinvolvement of the financial assets transferred is the risk level of Supor due to changes in value of such financial assets.
In case whole transfer of financial assets satisfies the derecognition condition, the difference between the sum of the book valueof financial assets transferred and consideration received due to the transfer and the sum of changes in fair value original includedinto other comprehensive income shall be included into the current profits and losses.
In case partial transfer of financial assets satisfies the derecognition condition, book value of the financial assets transferred shallbe amortized between the derecognition part and the part without derecognition according to their own fair value, and the
difference between the sum of the consideration received for the transfer and accumulated amount of the change in fair value to beamortized to derecognition part and originally included into other comprehensive income, and the foregoing book value amortizedshall be included into the current profits and losses.For financial assets sold with right of recourse, or to transfer financial assets by endorsement, Supor needs to determine whetheralmost all risks and rewards related to ownership of such financial assets have been transferred. If almost all risks and rewardsrelated to the ownership of such financial assets are transferred to the transferee, derecognition of such financial assets shall beconducted; derecognition of such financial assets should not be conducted if the risks and rewards related to the ownership of suchfinancial assets are reserved; if the risks and rewards related to the ownership of such financial assets are not transferred norreserved, it needs to determine whether the Company keeps its control over such assets and make accounting treatment based onprinciples as described in the foregoing paragraphs.
(4) Derecognition of financial liabilities
In case the current obligations of financial liabilities (or part of the financial liabilities) have been terminated, Supor will carryout derecognition of such financial liabilities or part of them. In case Supor (borrower) signs an agreement with the debtor toreplace the original financial liabilities by means of bearing new financial liabilities, and contract clauses related to the newfinancial liabilities and original financial liabilities are different in essence, it's required to carry out derecognition of originalfinancial liabilities and recognize the new financial liabilities simultaneously. If Supor substantially modifies the contract terms ofthe original financial liability (or part of it), the original financial liability is derecognized and a new financial liability isrecognized in accordance with the revised terms.In case derecognition is carried out for the whole or part of financial liabilities, the difference between their book value and theconsideration paid (including non-cash assets transferred out or liabilities assumed) shall be included by Supor in the currentprofits and losses.
(5) Offset of financial assets and financial liabilities
In case Supor has the legal right of offsetting the financial assets and financial liabilities recognized and such legal right isexecutable now, and Supor plans to carry out settlement by net amount or realize the financial assets and pay off the financialliabilities simultaneously, the net amount after mutual offset of such financial assets and financial liabilities shall be set out in thebalance sheet. Otherwise, financial assets and financial liabilities shall be set out in the balance sheet respectively and will not beoffset mutually.
(6) Equity instruments
An equity instrument refers to a contract that can prove the ownership of residual interest in assets after Supor deducts allliabilities. Supor's issuing (including refinancing), repurchase, sale or cancellation of equity instruments are treated as changes inequity, and transaction costs related to equity transactions are deducted from equity. Supor does not determine changes in fairvalue of equity instruments.
Distribution of dividends (including "interest" from instruments classified as equity instruments) from the equity instrumentsduring the duration of Supor is treated as profit distribution.
11. Financial assets impairment
Supor needs to recognize the financial assets with impairment losses as financial asset measured at amortized costs and debttools measured at the fair value with their changes included into other comprehensive incomes, including mainly notes receivable,accounts receivable, receivables financing, other receivables and other debt investments. Moreover, for contract assets and some
financial guarantee contracts, the impairment provision shall be accrued and the credit impairment loss shall be recognizedpursuant to the accounting policy set forth herein.
(1) Recognition method of impairment provision
The above items are accrued for impairment provision and credit impairment losses by Supor in accordance with applicableexpected credit loss measure methods (general or simplified) based on the expected credit loss.
Expected credit loss refers to the weighted average of credit losses of financial instruments weighed by the risk of default. Creditloss refers to the difference between all contractual cash flows discounted as per the original effective interest rate and receivablefrom the contract and all cash flows expected to be received by Supor, namely, the present value of a shortage of cash. Wherein,the purchased or underlying financial assets with credit impairment of Supor shall be discounted as per effective interest rate basedon credit adjustment.
The general method for measuring expected credit loss is as follows, Supor evaluates whether credit risk of financial assets(including contract assets and other applicable items, the same below) has remarkably increased after initial recognition on eachbalance sheet date. In case of credit risk having remarkably increased after initial recognition, Supor will measure loss provision asper the amount equivalent to expected credit loss in the entire duration; in case of credit risk failing to remarkably increase afterinitial recognition, Supor will measure loss provision as per the amount equivalent to expected credit loss in the next 12 months.At the time of evaluating expected credit loss, Supor considers all reasonable and well-founded information, including forward-looking information.
When the expected credit loss is measured, the longest period to be considered by Supor is the longest contract period when theenterprise faces the credit risk (including considering the renewal option). The expected credit loss of the entire duration refers tothe expected credit loss arising from all possible events of default regarding financial instrument occurring during the entireexpected duration. Expected credit loss in the next 12 months refers to expected credit loss resulting from default of financialinstruments likely occurring within 12 months after the balance sheet date (expected duration if the expected duration of financialinstruments is less than 12 months) which is part of expected credit loss during the entire duration.
For the financial instrument with a lower credit risk on the balance sheet date, Supor assumes that its credit risks have notincreased significantly since the initial recognition, and measures the loss provisions according to the expected credit losses of thefuture 12 months.
(2) Standard for judging whether credit risk has remarkably increased after initial recognition
In case that probability of default of one financial asset confirmed on the balance sheet date in the expected duration is obviouslyhigher than that confirmed at the moment of initial recognition in the expected duration, it means credit risk of such financial assetremarkably increases. The changes of default risk within the next 12 months are adopted by Supor other than special cases asreasonable estimate in the entire duration, ensuring whether the credit risk has increased significantly since the initial recognition.
(3) Combinatorial method of appraising future credit risk based on portfolio
Supor appraises the credit risk of the financial asset item of significantly different credit risks, such as: receivables from therelated parties; receivables disputed with the opposite side or involving litigation or arbitration; there have been obvious signsshowing that the debtor possibly is not able to perform the repayment obligations of receivable amounts, etc.
Except financial assets of individual credit risk assessment, Supor divides financial assets into different groups based on thecommon risk characteristics and appraises credit risks based on portfolio.
(4) Accounting treatment method of financial assets impairment
The expected credit losses of all kinds of financial assets are calculated by Supor at the end of the duration. If the estimatedcredit loss is greater than the book value of the current impairment provision, the difference is recognized as impairment loss; Ifnot, it is recognized as impairment profits.
(5) Determination method of credit losses of all kinds of financial assets
(a) Accounts receivable and contract assets
For accounts receivable and contract asset not involving significant financing part, Supor always calculates the loss provision asthe amount of expected credit loss within the entire duration.
For accounts receivable and contract asset involving significant financing part, Supor always calculates the loss provision as theamount of expected credit loss within the duration.
The other accounts receivables other than individual credit risk assessment are divided into different portfolios based on theircredit risk characteristics:
| Item | Basis for determination of portfolio |
| Accounts receivable: | |
| Portfolio 1: age portfolio | Aging of receivables is used as the credit risk feature for this portfolio. |
Portfolio 2: low-risk portfolio
| Portfolio 2: low-risk portfolio | The portfolio includes very low-risk amounts such as the payment of export third-party goods. |
| Portfolio 3: merged related parties portfolio | This portfolio includes current amount between related parties within the merger scope of amounts receivable. |
(b) Other receivables
The impairment loss is measured by Supor in accordance with the amount of expected credit loss equivalent to that within thenext 12 months or the entire duration based on whether the credit risk of other receivables has increased significantly since theinitial recognition. The other receivables other than individual credit risk assessment are divided into different portfolios based ontheir credit risk characteristics:
| Item | Basis for determination of portfolio |
| Portfolio 1: age portfolio | Aging of receivables is used as the credit risk feature for this portfolio. |
| Portfolio 2: low-risk portfolio | The portfolio consists of dividends receivable, receivables from government departments and others with very low risk. |
| Portfolio 3: merged related parties portfolio | This portfolio includes current amount between related parties within the merger scope of amounts receivable. |
(c) Notes receivable and receivables financing
| Item | Basis for determination of portfolio |
| Notes receivable | All the notes receivable of Supor are bank acceptance bills, and Supor treats all the notes receivable as a single portfolio. |
| Receivables financing | The receivables financing of Supor refers to bank acceptance bills with dual holding purposes. Since the accepting banks are all highly credit-rated banks, Supor treats all receivables financing as a single portfolio. |
12. Receivables financing
The notes receivable and accounts receivable measured at the fair value with their changes included into other comprehensiveincomes are listed as receivables financing with a term of less than one year (including one year) from the initial recognition; Seethe Note V. "10. Financial instruments" and "11. Financial assets impairments" for relevant accounting policies.
13. Inventories
(1) Classification
Inventory mainly includes raw materials, unfinished products, finished products, low value consumables and packing materials.
(2) Valuation method for the acquisition and distribution of inventory
When inventories are acquired, they are priced at actual costs. Inventory costs include procurement costs, processing costs, andother costs. When inventories are used and distributed, the price is calculated by the one-off weighted average method at the endof a month.
(3) Inventory system is perpetual inventory system
(4) Amortization method for low value consumables and packing materials
The low value consumables are amortized using the one-time write-off method or the half amortization method; packingmaterials are amortized using the one-time write-off method.
(5) Method of recognizing net realizable value and accruing depreciation reserve of inventories
At the balance sheet date, the inventory shall be measured according to the cost or net realizable value, subject to the lower one.
Net realizable value refers to the amount of the estimated selling price of inventories deducted by estimated costs to be incurredupon completion, estimated sales expenses and related taxes in daily activities. As regards the raw material held for production, itsnet realizable value shall be confirmed based on the realizable value of the finished product. For the inventories held for executingthe sales contract or labor contract, the net realizable value shall be measured based on the contract price. When the amount ofholding inventory is more than the ordering amount in sales contract, the net realizable value of the excess inventory shall bemeasured based on general sales price.
The difference between the cost calculated by the individual inventory item and the net realizable value of the inventory isincluded into the current profits and losses.
| Inventory category | Recognition basis of the net realizable value |
| Finished products | Estimated selling price minus estimated sales expense and related taxes |
| Raw materials | Estimated selling price minus estimated costs to complete, estimated sales expense, and related taxes |
| Low value consumables |
14. Contract assets
Supor lists the customer's unpaid contract consideration as contract assets in the balance sheet, under which Supor has fulfilledits performance obligations in accordance with the contract, and it does not have the right to collect payments from customersunconditionally (that is, only depending on the passage of time). Contract assets and liabilities under the same contract are listed innet amount, and those under different contracts shall not be offset.
For the determination and accounting treatment methods of expected credit losses of contract assets, please refer to Note V. "11.Financial assets impairment".
15. Held-for-sale assets
(1) Held-for-sale non-current assets or non-current assets in the disposal group
In case Supor mainly recovers the book value by selling (including non-monetary assets exchange of commercial essence, thesame below) rather than using a non-current asset or disposal group continuously, it will be classified as held-for-sale category.Specific standard refers to meeting the following conditions at the same time: one non-current asset or disposal group can beimmediately sold under the current situation pursuant to the convention for selling such asset or disposal group in similartransaction; Supor has made a resolution about sale plan and got certain of purchase commitment; it's predicted that the sale willbe completed within one year. Disposal group refers to a group of assets that will be disposed together as a whole by selling orother means in a transaction and the liabilities directly related to these assets and transferred in the transaction. In case the assetgroup or asset group portfolio where the disposal group belongs has amortized the goodwill acquired in enterprise mergeraccording to Accounting Standards for Business Enterprises No. 8 -- Impairment of Assets, the disposal group shall include thegoodwill amortized to it.
If there are non-current assets or disposal groups purchased to resell during initial measurement or on the balance sheet datebased on remeasurement of Supor, if the book value is higher than the net amount by deducting the selling expenses with the fairvalue, the book value shall be written down and be equal to the net amount by deducting the selling expenses with the fair value.The write-down amount shall be confirmed as the asset impairment loss and included into the current profits and losses. At thesame time, the impairment provision of the held-for-sale assets shall be calculated and withdrawn. For the disposal group, it shalldeduct the book value of the goodwill in the disposal group with the asset impairment loss confirmed, then deduct in proportionthe book value of each non-current asset in the disposal group conforming to the measurement provisions on AccountingStandards for Business Enterprises No. 42 - Held-for-sale Non-current Assets, Disposal Group and Discontinuing Operation(hereinafter referred to as "the Standard for Held-for-sale Non-current Assets"). For the held-for-sale disposal group, if the netamount after deducting the selling expenses from the fair value on the subsequent balance sheet date increases, the previous write-down amount shall be recovered and shall be reversed from the confirmed amount of asset impairment loss amount of the non-current asset as per the measurement provisions on the Standard for Held-for-sale Non-current Assets after the assets are classifiedas held-for-sale category. The reverse amount shall be included into the current profits and losses, and the book value shall beadded in proportion of the book value of each non-current asset in the disposal group applicable to the measurement provisions onthe Standard for Held-for-sale Non-current Assets, except for the goodwill; Book value of the goodwill that has been offset andasset impairment loss recognized before the non-current assets applying to the measurement provisions on the Standard for Held-for-sale Non-current Assets are classified as held-for-sale category shall not be reversed.
Depreciation or amortization will not be withdrawn for held-for-sale non-current assets or non-current assets in the disposalgroup, and the interest of liabilities in held-for-sale disposal group and other expenses shall be recognized continuously.
When the non-current assets or disposal group can't be classified as held-for-sale category, the Group will no longer continue toclassify them as held-for-sale or remove non-current assets from the held-for-sale disposal group and measure them according tothe following two items, subject to the lower one: ① book value before the assets are classified as held-for-sale category, namely,the amount after the adjustment is carried out according to the depreciation, amortization or impairment, etc. that shall berecognized in the condition that the assets are supposed not to be classified as held-for-sale category; ② recoverable amount.
(2) Discontinuing operation
Supor defines discontinuing operation as separately identifiable components that meet one of the following conditions and havebeen disposed of or classified as held for sale by Supor.
- The component represents an independent main business or a single main business place;
- The component is part of an associated plan for the disposal of an independent main business or a single main business place;
- The component is the subsidiary obtained specially for resale.
For discontinuing operation presented in current period, Supor lists profit and loss of continuous operation as well asdiscontinuing operation in the current profit statement and presents the information on previous profit and loss of continuousoperation in the profit statement in the comparison period as profit and loss of discontinuing operation in the comparableaccounting period anew.
16. Long-term equity investment
The long-term equity investment mentioned in this part refers to the long-term equity investment of which Supor has controlright, common control right or significant impact on the invested units. Long-term equity investments that Supor does not havecontrol, common control or significant impact on the invested unit are accounted for as financial assets measured at the fair valuewith their changes included into the current profits and losses. If such assets are not non-transactional, Supor may specify thesecapitals as measured at the fair value with their changes included into other comprehensive incomes at the time of initialrecognition. Relevant accounting policies can be seen in Note V. "10. Financial instruments".
Common control refers to common control on a certain arrangement according to related provisions by Supor and relatedactivities of the arrangement can be decided only after the consent of the participant sharing the control right. Significant impactrefers to Supor's power on participating in the decision-making of financial and operating policies of the invested unit, but it can'tcontrol the formulation of these policies or control the formulation commonly with other party.
(1) Determination of investment cost
For the long-term equity investment obtained from the enterprise merger under the same control, the initial investment cost ofthe long-term equity investment shall be taken as the share of the book value of the merged party's shareholders' equities/owners'equities in the final controlling party's consolidated financial statements on the merger date. As to the difference between initialinvestment cost of long-term equity investments and the book value of the cash paid, non-cash assets transferred and liabilitiesassumed, it's required to adjust the capital reserve correspondingly. In case the capital reserve is insufficient for the offset, it'srequired to adjust the retained earnings. In the case of treating issued equity securities as the merger consideration, the share of thebook value of the merged party's shareholders' equities/owners' equities in the consolidated financial statement of the finalcontrolling party is regarded as the initial investment cost of long-term equity investment on the merger date; the capital reservesshall be adjusted in accordance with taking the total face value of shares issued as share capital, and the difference between theinitial investment cost of long-term equity investment and the total face value of shares issued; In case the capital reserve isinsufficient for the offset, it's required to adjust the retained earnings. The equity of the merged party obtained step by step throughseveral transactions, which finally forms enterprise merger under the same control, shall be handled separately according towhether it belongs to "package deal": if it belongs to the "package deal", the accounting treatment will be carried out by takingtransactions as a certain one with control right. If it does not belong to "package deal", the share of the book value of the mergedparty's shareholders' equities/owners' equities in the final controlling party's consolidated financial statement on the merger datewill be taken as the initial investment cost of long-term equity investment, and the capital reserves will be adjusted according tothe difference between the initial investment cost of long-term equity investment and the sum of book value of long-term equityinvestment before combination and book value of consideration newly paid for acquiring the share; In case the capital reserve isinsufficient for the offset, it's required to adjust the retained earnings. Other comprehensive income of equity investment heldbefore the merger date, which is accounted by equity method or recognized as financial assets measured at the fair value with theirchanges included into other comprehensive incomes, is temporarily not subject to the accounting treatment.
The long-term equity investment obtained from the enterprise merger not under the same control shall be used as the initialinvestment cost of long-term equity investment according to the merger cost on the purchase date. The merger cost includes thesum of assets paid by the purchasing party, liabilities incurred or assumed, and fair value of issued equity securities. The equity ofthe purchased party held obtained step by step through several transactions, which finally forms enterprise merger not under thesame control, shall be handled separately according to whether it belongs to "package deal": if it belongs to the "package deal", the
accounting treatment will be carried out by taking transactions as a certain one with control right. If it does not belong to "packagedeal", it shall take the sum of the book value of the original equity investment held by the original purchased party and the newlyinvestment cost as the initial investment cost of the long-term equity investments under the cost method. If the equity originallyheld is accounted for by equity method, the relevant other comprehensive incomes will not be accounted for the time being.The initial measurement of other equity investments except for the long-term equity investment formed by the enterprise mergershall be carried out according to the costs; in consideration of the different acquisition modes of long-term equity investment, suchcosts shall be determined respectively by the cash purchase price actually paid by Supor, the fair value of equity securities issuedby Supor, value agreed in the investment contract or agreement, the fair value or original book value of assets surrendered in thenon-monetary assets exchange transaction, the fair value of the long-term equity investment, etc. The expenses, taxes and othernecessary expenditures directly related to the acquisition of the long-term equity investment shall also be included into theinvestment cost. If the significant impact or common control is implemented on the invested unit due to the additional investment,but it does not constitute the control, the long-term equity investment cost is the sum of fair value of the originally held equityinvestment determined according to Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement ofFinancial Instruments and new investment cost.
(2) Methods for the subsequent measurement and the profit and loss confirmation
Long-term equity investments that have common control (except for joint operators) or significant impact on the invested unitare accounted by equity method. Besides, the Company's financial statement adopts the cost method to account the long-termequity investment that can be controlled by the invested unit.(a) Long-term equity investments under the cost methodWhen the cost method is adopted for accounting, long-term equity investment is priced at the initial investment cost, and the costof long-term equity investment shall be adjusted when the investment is added or recovered. The current investment incomes shallbe recognized by the cash dividends or profits announced and issued by the invested unit, except for the actual price paid when theinvestment is obtained or the cash dividends or profits which have been declared but not issued in the consideration.(b) Long-term equity investments under the equity method
As to long-term equity investments under the equity method, in case the initial investment cost is more than the shares of fairvalue of identifiable net assets of the invested unit that shall be enjoyed during the investment, initial investment cost of the long-term equity investments shall not be adjusted; in case the initial investment cost is less than the shares of fair value of identifiablenet assets of the invested unit that shall be enjoyed during the investment, the difference shall be included into the current profitsand losses and the cost of long-term equity investments shall be adjusted simultaneously.
When the equity method is adopted for accounting, it's required to recognize the investment income and other comprehensiveincome respectively according to net profit or loss realized by the invested unit that shall be enjoyed or shared and othercomprehensive income, and book value of the long-term equity investment shall be adjusted simultaneously. As to the part thatshall be enjoyed and calculated according to the profits or cash dividends announced and distributed by the invested unit, it'srequired to reduce the book value of long-term equity investment correspondingly. As to other changes in owners' equities of theinvested unit except for net profits and losses, other comprehensive incomes and profit distribution, the book value of the long-term equity investment shall be adjusted and included into the capital reserve. When the shares of net profit or loss of the investedunit that shall be enjoyed are recognized, it shall be based on fair value of each identifiable net asset of the invested unit when theinvestment is acquired and after the adjustment is made on net profit of the invested unit. In case the accounting policy andaccounting period employed by the invested unit are different from those employed by Supor, financial statements of the investedunit shall be adjusted according to Supor's accounting policy and accounting period. Besides, investment income, othercomprehensive income, etc. shall be recognized on this basis. For transactions between Supor and associated enterprise or jointventure, if the assets launched or sold do not constitute the business, the unrealized internal trading profits and losses shall beoffset according to the proportion attributable to Supor, and the investment profits and losses shall be recognized on this basis. Incase the part incurred between Supor and the invested unit without internal transaction loss belongs to the asset impairment loss, it
shall not be offset. If the assets invested by Supor to the joint venture or associated enterprise constitute the business, and theinvestor thereupon obtains the long-term equity investment but fails to obtain the control right, the fair value of business launchedis taken as the initial investment cost of newly long-term equity investment, and the difference between the initial investment costand book value of business launched shall be included into the current profits and losses in full. If the assets sold by Supor to thejoint venture or associated enterprise constitute the business, the difference between the consideration acquired and the book valueof business shall be fully included into the current profits and losses. If Supor's assets purchased from the joint venture orassociated enterprise constitute the business, accounting treatment shall be conducted in accordance with the provisions of theAccounting Standards for Business Enterprises No. 20 - Enterprise Merger, and the gains or losses related to the transaction shallbe fully recognized.When the net loss of the invested unit that shall be shared is recognized, the book value of the long-term equity investment andother long-term equity that actually constitute the net investment of the investee shall be written down to zero. Besides, if Suporhas the obligation to bear the additional loss for the invested unit, the estimated liabilities will be recognized according to theestimated obligation that shall be assumed and included into the current investment losses. In case the net profit is realized by theinvested unit later, after Supor makes up the unrecognized loss amount shared by the income amount shared, it's required torecover the revenue recognition amount shared.(c) Acquisition of minority shareholders' equitiesWhen compiling the consolidated financial statements, the Company shall adjust the capital reserve due to the differencebetween the newly-increased long-term equity investment from the purchase of the minority interest and the net asset sharesenjoyed according to the new shareholding proportion of the subsidiary continuously calculated from the purchase date (or themerger date); in case that the capital reserves are not sufficient to offset, the retained earnings shall be adjusted.(d) Disposal of the long-term equity investment
The parent company partially disposes the long-term equity investment of subsidiaries when the control right is not lost inconsolidated financial statement. The difference between disposal price and subsidiaries' net assets enjoyed corresponding to thedisposal of long-term equity investment will be included into the shareholders' equities; supposing that the parent company losesthe control right for the subsidiary due to the partial disposal of the long-term equity investment for the subsidiary, it shall be dealtwith in accordance with the relevant accounting policies as specified in the Note V. "7. Judgment criteria for control andpreparation method for consolidated financial statements (2)".As for the disposal of the long-term equity investment under other circumstances, the difference between the book value of thedisposed equity and the actually-obtained price shall be included into the current profits and losses.For long-term equity investments under the equity method, if the residual equities after disposal shall still be accounted by theequity method, upon the disposal, the part of other comprehensive income that was originally included into shareholders' equitiesshall be accounted for on the same basis as the invested unit's direct disposal of relevant assets or liabilities in a correspondingproportion. However, the owners' equities that are recognized based on the changes in other owners' equities shall be carriedforward to the current profits and losses in proportion, except for the net profits and losses, other comprehensive incomes andprofit distribution of the investee.
For the long-term equity investments under the cost method, if the residual equities after disposal are still under the cost method,the accounting treatment of other comprehensive incomes recognized under the equity method or standards of recognition andmeasurement of financial instruments before obtaining control of the invested unit shall be conducted on the same basis of theinvested unit's direct disposal of the relevant assets or liabilities, and it shall be carried forwarded to the current profits and lossesin proportion; except for the net profits and losses, other comprehensive incomes and profit distribution, the changes in otherowners' equities in the invested unit's net assets which are accounted and recognized by the equity method shall be carried forwardto the current profits and losses in proportion.
If Supor loses control of the invested unit due to disposal of partial equity investment, and the residual equities after disposalmay exert common control or significant impact on the invested unit while preparing individual financial statements, the equitymethod will be adopted for accounting, and it will be measured by the equity method and adjusted with equity method sinceobtaining; if the residual equities after disposal cannot implement the common control or exert significant impact on the invested
unit, the relevant provisions in respect of the standards of recognition and measurement of financial instruments shall bereferenced for the accounting treatment, and the difference between the fair value and book value shall be included into the currentprofits and losses on the date of losing control. Before Supor acquires the control of the invested unit, for other comprehensiveincomes recognized under the equity method or standards of recognition and measurement of financial instruments, when thecontrol of the invested unit is lost, the accounting treatment shall be conducted on the same basis of the invested unit's directdisposal of relevant assets or liabilities; the changes in the other owners' equities of the invested unit's net assets other than the netprofits and losses, other comprehensive incomes and profit distribution calculated and recognized by the equity method shall besettled and transferred to the current profits and losses in proportion. Among them, if the residual equities after disposal arecalculated by the equity method, other comprehensive incomes and other owners' equities shall be carried forward in proportion; ifthe residual equities after disposal are to be conducted with accounting treatment in accordance with the standards of recognitionand measurement of financial instruments, other comprehensive incomes and other owners' equities shall be carried forward.If Supor loses the common control or significant impact on the invested unit due to disposal of partial equity investment, theresidual equities after disposal shall be accounted according to the standards of recognition and measurement of financialinstruments. The difference between the fair value and book value shall be included into the current profits and losses on the dateof losing common control or significant impact. As for other comprehensive incomes as recognized when the original equityinvestment is under the equity method, it shall be subject to the accounting treatment on the same basis of the assets or liabilitieswhich are directly disposed by the invested unit when the equity method is abandoned. The owners' equities which are recognizedby the investee due to the changes in other owners' equities, except for the net profits and losses, other comprehensive incomes andprofit distribution, will be reckoned in the current investment incomes when the equity method is abandoned.Supor will take the multiple transactions to dispose the subsidiaries' equity investment step by step until losing its control right.When the above-mentioned transactions belong to the package deal, the transactions will be subject to the accounting treatment asan equity investment of subsidiaries and transaction which has lost the control right. The difference between the disposal price andthe corresponding book value of long-term equity investment will be recognized as the other comprehensive incomes before losingthe control right, which will be reckoned in the current profits and losses when the control right is lost.
17. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for producing commodities, rendering of services, leasing or operation management withservice life of more than 1 fiscal year. The fixed assets can be recognized only when the relevant economic interests are possible toflow into Supor and its costs can be measured reliably. The initial measurement of fixed assets shall be carried out according to thecost and considering the expected influence of the discard expenses.
(2) Depreciation method
| Categories | Depreciation method | Depreciation life (years) | Residual rate | Annual depreciation rate |
| Buildings and structures | Straight-line method | 20-30 | 0%-10% | 3.00%-5.00% |
| General equipment | Straight-line method | 3-7 | 0%-10% | 12.86%-33.33% |
| Special equipment | Straight-line method | 3-10 | 3%-10% | 9.00%-32.33% |
| Transport facilities | Straight-line method | 4-10 | 3%-10% | 9.00%-24.25% |
The expected net residual value refers to the expected amount that Supor may obtain from the current disposal of fixed assetsafter deducting the expected disposal expenses at the expiration of its expected service life.
(3) Impairment test method and counting and withdrawing method of the impairment provision of fixedassets
See more details about the impairment test method and the withdrawing method of impairment provision of fixed asset in Note V."22. Impairment of long-term assets".
(4) Other explanations
The subsequent expenditures related to fixed assets shall be included into fixed assets cost, and the derecognition of the bookvalue of the substitution part shall be carried out if economic benefits related to such fixed assets may flow in and its cost can bereliably measured. Other subsequent expenditures, except for these, shall be included into the current profits and losses onceoccurred.As for each component constituting fixed assets, in case that they have different service life or provide economic interest forSupor by different ways and apply to different rates of depreciation and depreciation methods, Supor recognizes each componentas a single fixed asset, respectively.
When the fixed assets are under disposal state or it is estimated that no economic benefits can be produced through usage ordisposal, such fixed asset is derecognized. The difference of the amount left as the book value and relevant taxes are deductedfrom the disposal income obtained from the sale, transfer, discard or damage of the fixed asset shall be included into the currentprofits and losses.
Supor shall review the service life, expected net residual value and depreciation method of the fixed assets at least by the end ofthe year. In case of any change, it shall be deemed as changes in accounting estimate.
18. Construction in progress
The cost of construction in progress shall be recognized as per actual engineering expenditures, including various projectexpenditures under construction, capitalized borrowing expenses for making the project reach the expected serviceable condition,and other relevant costs. The construction in progress shall be transferred to the fixed assets when it reaches the expectedserviceable condition.
Disclosure of criteria and timing for the transfer of construction in progress to fixed assets by category:
| Categories | Criteria and timing for the transfer of construction in progress to fixed assets |
| Buildings and structures | Achieve the completion standards stipulated in the contract or project plan |
| General/special equipment | Meets the design and contractual qualified standards of installation and commissioning |
See more details about the impairment test method and the withdrawing method of impairment provision of construction inprogress in Note V. "22. Impairment of long-term assets".
Supor shall sell the products or by-products produced before the fixed assets reach the intended usable state, and according to theprovisions of Accounting Standards for Business Enterprises No. 14 -- Revenue, Accounting Standards for Business EnterprisesNo. 1 -- Inventory, etc., the relevant income and cost will be accounted for and included into the current profits and losses.
19. Borrowing expenses
Borrowing expenses include interest on borrowings, amortization of discounts or premiums, auxiliary costs and exchangedifferences arising from foreign currency borrowings, etc. For the borrowing expense generated from the acquisition andconstruction or production that can be directly attributable to the assets that meet capitalization conditions, the capitalization shallbe started when the asset expenditure or the borrowing expense has incurred, or the acquisition and construction or productionactivities necessary for making the assets available for expected serviceable or marketable state have been started; capitalization
shall be stopped when the assets under acquisition and construction or production that meet capitalization conditions reach theexpected serviceable condition or marketable state. Other borrowing expenses are recognized as expenses in the occurrence period.
The amount can be capitalized after the actual interest expense generated from the specific borrowing deducting the interestrevenue from the unused loan funds deposited in the bank or investment income obtained from the temporary investment in thecurrent period; for the general borrowing, the capitalized amount will be determined after the weighted average of excessive partof accumulative asset expenditures compared to the asset expenditure of special borrowing multiplied by the capitalization rate ofthe general borrowing occupied. The capitalization rate is determined based on the weighted average interest rate of generalborrowing.In the capitalization period, all exchange differences of special foreign currency borrowings shall be capitalized; exchangedifference of general foreign currency borrowing shall be included into the current profits and losses.
Assets meeting capitalization conditions refer to the fixed assets, investment properties, inventories, etc. which can reach theexpected serviceable state or marketable state after quite a long time of acquisition and construction or production.
If assets meeting capitalization conditions are interrupted abnormally in the process of acquisition and construction or production,and the interruption lasts for more than 3 months, the capitalization of borrowing expense shall be suspended till the assetacquisition and construction or production restarts.
20. Intangible assets
(1) Intangible assets
Intangible assets refer to the identifiable non-monetary assets that are owned or controlled by Supor and have no physical form.
The initial measurement of intangible assets shall be conducted according to costs. Expenditures related to intangible assets shallbe included into the cost of intangible assets if the relevant economic benefits may flow in Supor and costs can be reliablymeasured. Other expenditures, except for these, shall be included into the current profits and losses once occurred.
Land use right acquired is usually calculated as intangible assets. As for buildings such as self-developed and constructedworkshops, the related land use right expenditure and construction cost of the buildings shall be calculated as intangible assets andfixed assets respectively. As for purchased buildings and structures, the related prices are distributed between land use right andthe buildings. If it is difficult to distribute them reasonably, all of them shall be disposed as fixed assets.
As for intangible assets with a limited service life, the accumulative amount after deducting the expected net residual value andthe accrued impairment provisions with original value since the serviceable date, it is amortized with the straight-line methodwithin the expected service life. Intangible assets with undetermined service life will not be amortized.
The service life of each intangible asset, the basis for its determination, and the amortization method are as follows:
| Item | Amortization period (years) | Determination basis | Amortization method |
Land use right
| Land use right | 43-50 | Allowed period | Straight-line method |
| Software | 2-10 | The term of bring economic benefits to the Company. | Straight-line method |
| Trademark use right | 10 | Allowed period | Straight-line method |
| Pollutant discharge right | 5 | Contract period | Straight-line method |
At the end of each period, the service life of intangible assets with limited service life and the amortization method for them willbe rechecked. Changes of them will be regarded as changes of accounting estimate. In addition, the service life of intangible assetswith undetermined service life will be rechecked. If there is evidence manifesting that an intangible asset can bring economicbenefits for the enterprise within a foreseeable period, then its service life will be estimated and it will be amortized according tothe amortization policy for intangible assets with limited service life.
(2) R&D expenditure
Expenditures on the internal R&D items of Supor are divided into research expenditure and development expenditure.Research expenditure is included into the current profits and losses at the time of occurrence.Development expenditure that can meet the following conditions will be recognized as intangible assets, while those cannot meetwill be included into the current profits and losses:
-Complete the intangible asset so as to make the use or sale of it technically feasible;-Have the intention to complete the intangible asset and use or sell it;-The way that an intangible asset generates economic benefits is to certify that the products produced with the intangible assethave market or the intangible asset itself has market, or to certify its usability when it will be used internally;-There are enough technology, financial resources and other resources to support finishing the development of an intangibleasset, and it is capable of using or selling this intangible asset;-Expenditure within the development stage of this intangible asset can be measured reliably.If it is unable to distinguish the research expenditure from development expenditure, both R&D expenditures will be includedinto the current profits and losses.
(3) Impairment test method and counting and withdrawing method of the impairment provision ofintangible assetsSee more details about the impairment test method and the withdrawing method of impairment provision of intangible assets inNote V. "22. Impairment of long-term assets".
21. Long-term unamortized expenses
Long-term unamortized expenses are expenses that have occurred but shall be borne during the reporting period and subsequentperiods with a sharing period of more than one year. Long-term unamortized expenses of Supor mainly include improvementexpenditure of fixed assets leased for operation. Long-term unamortized expenses are amortized with the straight-line method overthe expected benefit period.
22. Impairment of long-term assets
As for fixed assets, construction in progress, right-of-use assets, intangible assets with a limited service life, investmentproperties measured by cost measurement, long-term unamortized expenses, and non-current and non-financial assets such as thelong-term equity investment and goodwill of subsidiaries, joint ventures and associated enterprises, Supor shall determine whetherthere is any sign of impairment on the balance sheet date. If there are signs of impairment, the recoverable amount shall beestimated and impairment test shall be carried out. Goodwill, intangible assets with undetermined service life and intangible assetsthat have not reached the serviceable state, whether there is any sign of impairment, shall be subject to impairment test every year.
If the impairment test result shows that the recoverable amount of assets is lower than the book value thereof, impairmentprovision shall be accrued according to the difference and included into impairment losses. The recoverable amount shall bedetermined as the net amount obtained by the fair value of the asset less the disposal expense, or as the present value of theestimated future cash flow of assets, whichever is higher. The fair value of the asset is determined according to the price in thesales agreement in the fair transaction; if there is no sales agreement but there is an active market of assets, the fair value isdetermined according to buyer's price of the asset; if there is no sales agreement and an active market of assets does not exist, thefair value of assets shall be estimated based on the best information obtained. The disposal expenses include the legal fees relatedto the asset disposal, relevant taxes, carriage expenses as well as direct expenses for achieving the marketable state status. Thepresent value of the estimated future cash flow of assets shall be determined by the discounted amount by an appropriate discountrate, on the basis of the estimated future cash flow generated during the continuous usage and final disposal of assets. The
impairment provision shall be calculated and recognized on the basis of the single asset. If it is hard to estimate the recoverableamount of the single asset, the recoverable amount of the asset group shall be determined by the asset group to which the assetbelongs. Asset group refers to the minimum asset portfolio that can generate cash inflow independently.For the goodwill separately presented in the financial statements, during the impairment test, the book value of goodwill shall beapportioned to the asset group or asset group portfolio expected to be benefited from the synergistic effect of enterprise merger. Ifthe test results show that the recoverable amount of the asset group or asset group portfolio containing the apportioned goodwill islower than its book value, the corresponding impairment loss shall be recognized. The amount of impairment loss firstly offsetsthe book value of goodwill apportioned to the asset group or asset group portfolio, and then offsets the book value of other assetsin proportion according to the proportion of the book value other than goodwill in the asset group or asset group portfolio.Once the above-mentioned asset impairment losses are recognized, the part of which can be recovered shall not be reversed insubsequent periods.
23. Contract liabilities
Contract liabilities refer to the obligation of Supor to transfer commodities to customers for the received or receivableconsideration from customers. In the event that customers have paid the contractual consideration or Supor has obtained theunconditional collection right before it transfers the commodities to customers, Supor shall present the received or receivableaccount as contract liabilities with regard to the actual payment by customers and the due payment, whichever happens earlier.Contract assets and liabilities under the same contract are listed in net amount, and those under different contracts shall not beoffset.
24. Employee remuneration
(1) Employee remuneration
Supor's employee remuneration mainly includes short-term employee remuneration, post-employment benefits, terminationbenefits and other long-term employee benefits. Including:
Short-term employee remuneration mainly includes salary, bonus, allowance and subsidy, employee benefits expense, medicalpremium, maternity premium, occupational injuries premium, housing accumulation fund, labor union expenditure, personneleducation fund, non-monetary benefit, etc. During the accounting period in which Supor's employees provide services for Supor,actual short-term employee remuneration incurred shall be recognized as the liabilities and included into the current profits andlosses or relevant asset costs. And the non-monetary benefits shall be measured at fair value.
Post-employment benefits mainly include basic endowment insurance, unemployment insurance, and annuity. Plans of post-employment benefit include defined contribution plans. In case that defined contribution plans are adopted, corresponding amountwhich shall be deposited will be included into the relevant asset costs or current profits and losses at the time of occurrence.
Labor relation with employees shall be cancelled before the employee's labor contract expires, or suggestion on givingcompensation shall be proposed for the purpose of encouraging employees to voluntarily accept downsizing. When Supor cannotunilaterally withdraw termination benefits provided for cancellation of labor relation plan or downsizing suggestion and on thedate when Supor recognizes the cost related to restructuring involving payment of termination benefits, whichever is the earlier,the employee remuneration liabilities caused by termination benefits shall be recognized and included into the current profits andlosses. However, if it is expected that the termination benefits cannot be fully paid within twelve months after the annual reportingperiod is over, it shall be handled according to other long-term employee remuneration.
The same principle for termination benefits described above shall be adopted for the plan of employee internal retirement. Staffsalary and social insurance premium to be paid by Supor for early retired employees from the date of stopping providing servicesto the date of normal retirement are included into the current profits and losses (termination benefits) if the recognition conditionsof estimated liabilities are met.
25. Estimated liabilities
If the obligation related to contingencies satisfies the following conditions at the same time, it shall be recognized as theestimated liabilities: ① This obligation is the current obligation undertaken by Supor; ② Performance of this obligation may makeeconomic benefits flow out of the enterprise; ③ Amount of this obligation can be reliably measured.The estimated liabilities are initially measured based on the optimal estimate of the expenditure required to perform the relevantcurrent obligations. In case of having a great effect on time value of currency, estimated liabilities shall be confirmed based on theamount after discounting of estimated future cash flow of assets. When confirming the optimal estimate, Supor gavecomprehensive considerations to risks related to contingencies, uncertainty, time value of money and other factors. The necessaryexpenditure has a contiguous range, and within this range, all kinds of results have the same possibility to occur. The optimalestimate is determined according to the median of this range. In other circumstances, the optimal estimate is treated as below:
- If the contingency involves with a single item, then the optimal estimate will be determined based on the amount that is mostlikely to occur.
- If the contingency involves with several items, then the optimal estimate will be determined based on all possible results andtheir probabilities.
Supor rechecked the book value of the estimated liabilities on the balance sheet date and adjusted the book value based on thecurrent optimal estimate.
(1) Loss contract
The loss contract refers to a contract whose performance of the contractual obligations will inevitably incur costs in excess of theexpected economic benefits. When an enforceable contract becomes a loss contract, for which the liability can conform to theaforesaid estimated liabilities confirmation conditions, confirm the part the estimated losses of the contract surpass the confirmedimpairment loss (if any) of the underlying asset in the contract as estimated liability.
(2) Restructuring obligations
It shall determine the estimated liabilities amount according to the direct expenditures related to the restructuring which hasdetailed, formal and publicly stated restructuring plan and which is in line with the recognition conditions of the aforesaidestimated liabilities. The restructuring obligation related to partially-sold business will be recognized to be the associatedobligation only when Supor promises to sell partial businesses (namely, signs the binding-force sales agreement).
26. Share-based payment
(1) Accounting treatment of share-based payment
A share-based payment is a transaction that grants the equity instruments or assumes a liability determined on the basis of theequity instruments in order to obtain services from employees or other parties. Share-based payments are divided into equity-settled share-based payments and cash-settled share-based payments.(a) Equity-settled share-based payment
Equity-settled share-based payments in exchange for services provided by employees are measured at the fair value with theequity instruments granted to the employees at the grant date. The amount of the fair value is included into the relevant cost orexpense based on the optimal estimate of the number of vesting equity instruments in case of completing the service within thewaiting period or meeting the required performance conditions; when the vesting right is granted immediately, the relevant cost orexpense is included on the grant date according to the straight-line method, and the capital reserves shall be increased accordingly.
On each balance sheet date during the waiting period, Supor makes the optimal estimate based on the latest information such asthe change in the number of employees with vesting rights, and corrects the number of equity instruments that are expected to bevested. The impact of the above estimates is included into the current relevant cost or expense, and the capital reserves shall beadjusted accordingly.In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of other parties'services can be reliably measured, the fair value of other parties' services is measured at the fair value on the date of acquisition; ifthe fair value of other parties' services cannot be reliably measured, but the fair value of equity instruments can be measuredreliably, it shall be measured at the fair value of the equity instrument on the acquisition date, and is included into the relevant costor expense, and increases the shareholders' equities accordingly.(b) Cash-settled share-based paymentThe cash-settled share-based payment is measured at the fair value of the liabilities determined by Supor based on shares orother equity instruments. If the vesting right is granted immediately after the grant, the relevant cost or expense will be included onthe grant date, and the liabilities increased accordingly; if the service within the waiting period must be completed or the requiredperformance conditions are met, the fair value of the liabilities assumed by Supor is based on the optimal estimate of the vestingrights on each balance sheet date of the waiting period. The services obtained in the current period are included into the cost orexpense, and the liabilities are increased accordingly.The fair value of the liability is re-measured at the balance sheet date and the settlement day before the settlement of the relevantliabilities, and the change shall be included into the current profits and losses.
(2) Accounting treatment related to the modification and termination of share-based payment plan
When Supor modifies the share-based payment plan, if the modification increases the fair value of the equity instrumentsgranted, the increase in the fair value of the equity instruments is recognized accordingly. The increase of the fair value of equityinstruments refers to the difference between the fair value of the equity instruments before and after the modification on themodification day. If the modification reduces the total fair value of the share-based payment or adopts other methods that are notconducive to the employee, the service obtained will continue to be accounted for, as if the change has never occurred, unlessSupor cancels some or all of the equity instruments granted.
During the waiting period, if the granted equity instrument is cancelled, Supor will cancel the granted equity instrument as anaccelerated exercise, and the amount to be recognized in the remaining waiting period will be immediately included into thecurrent profits and losses, and the capital reserves shall be recognized at the same time. If the employee or other party can chooseto meet the non-vesting conditions but fails to meet in the waiting period, Supor will treat it as a cancellation of the equityinstrument.
(3) Accounting treatment of the share-based payment transactions involving Supor and the shareholders or actualcontrollers of the Company
For share-based payment transaction involving Supor or the Company's shareholders or actual controller, if either settlemententerprise or enterprise accepting service is inside Supor or outside Supor, the accounting treatment shall be conducted in theconsolidated financial statements of Supor according to the following regulations:
-Where the settlement enterprise makes calculation by its own equity instruments, the share-based payment transaction shall betreated as the equity-settled share-based payment; in addition, it shall be handled as a cash-settled share-based payment.
-If the settlement enterprise is an investor of a service enterprise, it shall be recognized as the long-term equity investment of theservice enterprise according to the fair value of the equity instrument at the grant date or the fair value of the liability to beassumed, and the capital reserves (other capital reserves) or liabilities shall be recognized.
-If the enterprise accepting service does not have a settlement obligation or the equity instruments granted to the enterpriseemployees are its own equity instrument, such share-based payment transaction shall be treated as the equity-settled share-based
payment. If the enterprise accepting service has a settlement obligation and the equity instruments granted to the enterpriseemployees are not its own equity instrument, such share-based payment transaction shall be treated as the cash-settled share-basedpayment.The share-based payment transactions between the enterprises within Supor, if the acceptance services enterprise and thesettlement enterprise are not the same enterprise, and the confirmation and measurement of the share-based payment transaction inindividual financial statements of the acceptance service enterprise and the settlement enterprise shall be compared with the aboveprinciples.
27. Revenue
Disclosure of the accounting policies adopted for revenue recognition and measurement by business typeRevenue is the total inflow of economic benefits that Supor has formed in its daily activities that will result in an increase inshareholders' equities and has nothing to do with the capital invested by shareholders. Where the contract between Supor and itscustomers can meet the following conditions at the same time, the revenue shall be confirmed when the customer owns therelevant control right of the commodity (including labor service, the same below): all concerned parties have approved the contractand promised to fulfill their respective obligations; the contract has specified rights and obligations of each concerned party relatedto commodity transfer or labor provision; the contract has clear payment terms related to the transferred commodities; the contractis of the commercial essence, which means that performance of the contract will change the risk, time distribution or amount offuture cash flow of Supor; the consideration that Supor is entitled to obtain due to the transfer of commodities to customers islikely to be recovered. To obtain the control right of relevant commodities means to be able to lead the use of the commodities andobtain almost all economic benefits therefrom.On the beginning date of the contract, Supor identifies the individual performance obligation specified in the contract andamortizes the transaction price to each individual performance obligation based on the relative proportion of the individual salesprice of the commodity guaranteed in individual performance obligation. Variable consideration, significant financing part in thecontract, non-cash consideration, customer consideration payable, etc. have been taken into account the transaction price.For the consideration payable to customers, the consideration payable will be offset by the transaction price, and the currentrevenue will be offset at the later point of recognition of the relevant revenue and payment (or promised) of the customer'sconsideration, except for obtaining other products that can be clearly distinguished.For contracts with quality assurance clauses, Supor analyzes the nature of the quality assurance provided by them. If the qualityassurance provides a separate service in addition to assuring customers that the commodities sold meet the established standards,Supor regards it as a single performance obligation.Transaction price is the consideration amount Supor is expected to be entitled to receive for the transfer of commodities orservices to customers, excluding payments received on behalf of third parties. The transaction price recognized by Supor does notexceed the amount for which it is highly probable that the accumulated recognized revenue will not be reversed significantly whenthe relevant uncertainty is eliminated.As for each individual performance obligation in the contract, if one of the following conditions is met, Supor shall confirm thetransaction price which is amortized into the individual performance obligation based on the performance progress within arelevant performance period as the revenue: the customer obtains and consumes the economic benefits while Supor fulfills theperformance obligation; the customer manages to control the commodities in process while Supor fulfills the performanceobligation. Commodities produced during the performance period have irreplaceable purposes and Supor has the right to receivepayment for the performance part which has been completed so far during the entire contract period. The performance progressshall be confirmed based on the nature of commodities transferred by virtue of the input method or the output method. When theperformance progress cannot be confirmed reasonably, if it is predicted that the incurred cost of Supor can be compensated, therevenue shall be confirmed based on the incurred cost amount until the performance progress can be confirmed reasonably.If one of the above conditions cannot be met, Supor confirms the transaction price amortized to the individual performanceobligation at the time when the customer obtains the control right of relevant commodities as the revenue. When judging whether
the customer has obtained the control right of the commodity, Supor can consider the following signs: the enterprise has thecurrent collection right of the commodity, namely the customer is responsible for current payment obligation of the commodity;the enterprise has transferred the legal ownership of the commodity to the customer, namely the customer has possessed the legalownership of the commodity; the enterprise has transferred the real commodity to the customer, namely the customer haspossessed the real commodity; the enterprise has transferred main risks and rewards of the commodity to the customer, namely thecustomer has obtained the main risks and rewards related to the ownership of the commodity; the customer has accepted thecommodity; other signs indicating that the customer has obtained the control right of the commodity.For sales with sales return clauses, when customers obtain control over related commodities, Supor recognizes revenueaccording to the consideration amount expected to be received due to the transfer of commodities to customers (i.e., excluding theamount expected to be refunded due to sales return), and recognizes liabilities as per the amount expected to be refunded due tosales return. Simultaneously, according to the expected book value of the returned commodities at the time of transfer, the balanceafter deducting the expected cost of recovering the commodities (including the impairment of the value of the returnedcommodities) is recognized as an asset, and the net cost of the above assets is carried forward according to the book value of thetransferred commodities at the time of transfer. On each balance sheet date, Supor re-estimates the future sales returns, and if thereis any change, it will be treated as a change in accounting estimates.Supor's selling of commodities such as cookware and small domestic appliance is a type of performance obligation at a certaintime point, of which the revenue is recognized when the control over the commodities has been transferred to the customer.According to the agreement in the sales contract, Supor mainly recognizes the control over commodity as having been transferredto the customer and recognizes relevant commodity revenue when such commodity has left Supor's warehouses or its specifiedwarehouses, delivered to the customer with acceptance receipt issued, or such commodity has been delivered on board to the seatransport carrier with the customs declaration for export and bill of lading obtained.Situation where similar businesses adopt different business models and involve different revenue recognition methods andmeasurement methods
28. Contract cost
The incremental cost incurred by Supor to obtain the contract and expected to be recovered shall be recognized as an asset as thecontract acquisition cost. However, if the amortization period of the asset does not exceed one year, it shall be included into thecurrent profits and losses at the time of occurrence.In the event that the cost incurred for the performance of the contract does not fall within the scope of the Accounting Standardsfor Business Enterprises No. 14 - Revenue (Revised in 2017) and meets the following conditions at the same time, it shall berecognized as an asset as the contract performance cost: ① The cost is directly related to a current or expected contract, includingdirect labor, direct materials, manufacturing expenses (or similar expenses), costs borne by the customer and other costs onlyincurred by the contract; ② The cost increases Supor's resources to fulfill its performance obligations in the future; ③ The cost isexpected to be recovered.
Assets recognized for contract acquisition cost and assets recognized for contract performance cost (hereinafter referred to as"assets related to contract cost") shall be amortized on the same basis as the revenue recognition of commodities or services relatedto such assets and included into current profits and losses.
Where the book value of assets related to contract costs is higher than the difference between the following two items, Suporshall withdraw the impairment provisions of the excess part and recognize it as the asset impairment loss:
- Residual consideration expected to be obtained arising from the transfer of commodities or services related to the assets bySupor;
- Cost estimated to be occurred for the transfer of the relevant commodities or services.
29. Government subsidies
Government subsidies refer to monetary assets and non-monetary assets obtained by Supor from the government, excluding thecapital invested by the government as the investor with enjoying corresponding owners' equities. Government subsidies aredivided into government subsidies concerning assets and government subsidies concerning benefits. The government subsidy thatis obtained by Supor used for purchasing or acquisition and construction, or forming the long-term assets by other ways, which isconfirmed the government subsidies concerning assets; Other government subsidies shall be defined as the government subsidiesconcerning benefits. If the government document does not clear the subsidy object, the subsidies will be divided based on thefollowing modes into government subsidies concerning benefits and government subsidies concerning assets: ① If the particularitem of the subsidies is clear in the government document, it shall make a division according to the relative proportion of expenseamount of the formed assets in the budget of the particular item and the expense amount included into the cost, review the divisionratio at each balance sheet date and make changes if necessary; ② In the government document, for general terms only for thepurpose without specifying the particular item, it will be used as the government subsidies concerning benefits. If governmentsubsidies are monetary assets, they shall be measured according to the amount received or receivable. If not, they shall bemeasured according to their fair value; if their fair value cannot be reliably obtained, they shall be measured according to theirnominal amount. The government subsidies measured by the nominal amount shall be directly included into the current profits andlosses.When Supor actually receives the government subsidies, it shall be recognized and measured as the amount received. However,for the end of the period, there are conclusive evidences that it can meet the relevant conditions stipulated by the financial supportpolicy, and it is expected that the financial support funds can be received, it shall be measured according to the amount receivable.The government subsidies measured as the amount receivable shall comply with the following conditions: ① The subsidyreceivable has been recognized by the competent government department, or may be reasonably calculated according to therelevant provisions of the formally published financial fund management method, and the estimated amount is free of significantuncertainty; ② It is based on the initiatively published financial support project by the local financial department and its financialfund management method in accordance with the regulations of the Decree of Government Information Openness, and thismanagement method shall be favorable to the public (any enterprise qualified can apply), not just to the specified companies; ③The relevant subsidy documents have clearly promised the appropriation period, and the appropriation of this fund shall besafeguarded by the relevant financial budget, so it can be reasonably guaranteed that it can be received within the specified period;
④ Other relevant conditions that shall be satisfied (if any) based on the specific circumstances of Supor and the grant.
If the government subsidies concerning assets are recognized as deferred incomes and are included into the current profits andlosses by installments in a reasonable and systematic way within the service life of underlying assets. Government subsidiesconcerning benefits used to compensate future relevant costs or losses will be recognized as deferred income, and included into thecurrent profits and losses during the period when the related costs or losses are recognized; those used to compensate relevantcosts or losses that have occurred will be included into the current profits and losses directly.
At the same time, it includes the government subsidies related to assets and incomes, and separates different parts for accountingtreatment; for those hard to be differentiated, it shall be taken as government subsidies concerning benefits as a whole.
The government subsidies concerning daily activities of Supor shall be included into other incomes, or used to offset the relevantcosts according to the economic business nature. Government subsidies not concerning daily activities will be included into thenon-operating income and expenditure.
If the government subsidies confirmed need to be returned and there is the deferred income balance concerned, the book balanceof relevant deferred incomes shall be offset against, but the excessive part shall be included into the current profits and losses; Inother circumstances, they shall be included into the current profits and losses directly.
30. Deferred income tax assets/deferred income tax liabilities
(1) Current income taxes
On the balance sheet date, the current income tax liabilities (or assets) formed in the current period and previous periods shall bemeasured by the expected amount of income tax payable (or returnable) calculated in accordance with the provisions of the tax law.The taxable income on which the current income tax expenses are calculated shall be calculated after the corresponding adjustmentof the pre-tax accounting profit in the current reporting period in accordance with the relevant tax law.
(2) Deferred income tax assets and deferred income tax liabilities
The difference between the book value of some assets and liabilities and their tax bases, and the temporary difference caused bythe difference between the book value of the items that are not recognized as assets and liabilities but whose tax bases can bedetermined according to the tax law, shall be used to recognize deferred income tax assets and deferred income tax liabilities withthe balance sheet liability method.
For taxable temporary differences related to the initial recognition of goodwill and the initial recognition of assets or liabilitiesarising from transactions that are neither enterprise merger nor affect accounting profit and taxable income (or deductible loss) atthe time of occurrence, the relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporarydifferences related to the investments of subsidiaries, associated enterprises and joint ventures, if Supor can control the time ofreversal of the temporary differences, and the temporary differences are likely not to be reversed in the foreseeable future, therelevant deferred income tax liabilities shall not be recognized. Except for the above exceptions, Supor shall recognize all otherdeferred income tax liabilities incurred in the taxable temporary differences.
For taxable temporary differences and deductible temporary differences related to the initial recognition of assets or liabilitiesarising from individual transactions that are neither enterprise merger nor affect accounting profits and taxable income (ordeductible losses) at the time of occurrence, the relevant deferred income tax liabilities and deferred income tax assets shall berecognized separately. In addition, for the deductible temporary differences related to the investment of subsidiaries, associatedenterprises and joint ventures, if the temporary differences are not likely to be reversed in the foreseeable future, or it is not likelyto obtain the taxable income used to offset the deductible temporary differences in the future, the relevant deferred income taxassets shall not be recognized. Except for the above exceptions, Supor shall recognize the deferred income tax assets arising fromother deductible temporary differences to the extent that taxable income is likely to be obtained for deducting the deductibletemporary differences.
For deductible losses and tax deductions that can be carried down in subsequent years, the corresponding deferred income taxassets shall be recognized with the limit of the future taxable income which is likely to be obtained for deducting the deductiblelosses and tax deduction.
Deferred income tax assets and deferred income tax liabilities shall be calculated on the balance sheet date based on theapplicable tax rate during the period of expected recovery of relevant assets or clearing off relevant liabilities according to tax laws.
On the balance sheet date, it is required to recheck the book value of the deferred income tax assets. If sufficient taxable incomeis not likely to be obtained for deducting the interest of deferred income tax assets in the future, the book value of deferred incometax assets shall be written down. When it is very likely to obtain enough taxable income the write-down amount shall be reversed.
(3) Income tax expenses
The income tax expenses comprise the current income tax and deferred income tax.
Moreover, the other current income tax and deferred income tax expenses or earnings shall be included into the current profitsand losses, except for book value of goodwill which is adjusted on the basis of the deferred income tax caused by the enterprisemerger, and that the current income tax and the deferred income taxes related to other comprehensive incomes or transaction oraffairs of direct recording in the shareholders' equities are included into other comprehensive incomes or shareholders' equities.
(4) Offset of income tax
When it has the legal rights of settlement based on the net amount and it intends to make settlement based on net amount, obtainassets or offset liabilities simultaneously, the current income tax assets and current income tax liabilities of Supor shall bepresented based on the net amount after offsetting.When it has the legal rights of settling the current tax assets and current income tax liabilities based on the net amount, and thedeferred income tax assets and deferred income tax liabilities are related to income tax levied to the same subject of tax paymentby the same tax collection and administration department or are related to different taxpayer, but in each important period ofdeferred income tax assets and liabilities reverse in the future, and when the involved taxpayer intend to settle the current incometax assets and liabilities based on the net amount or obtain assets and pay off the liabilities at the same time, Supor's deferredincome tax assets and deferred income tax liabilities shall be presented after offsetting.
31. Lease
Lease refers to a contract in which it is agreed that the lessor transfers the use right of assets to the lessee to get correspondingconsideration within a certain period.
Supor evaluates whether the contract is used for lease or includes the lease on the contract commencement date. Where eitherparty thereto assigns one or more use rights of the recognized assets under its control in a certain period to get consideration, thecontract is a lease or includes a lease.
In order to determine whether the contract transfers the right of controlling the use of an identified asset for a certain period oftime, Supor conducts the following assessment:
- Whether the contract involves the use of the identified asset. The identified asset may be explicitly specified by the contract, orimplicitly specified when the asset is available for use by the customer, and the asset is physically distinguishable, or in the eventthat any production capacity of the asset or other part of the asset is physically indistinguishable, but it substantially represents thefull capacity of the asset, and thus enables the customer to have access to almost all the economic benefits arising from the use ofthe asset. If the supplier of the asset has the substantial right of replacing the asset throughout the period of use, then the asset isnot attributed to an identified asset;
- Whether the lessee has the right to acquire almost all the economic benefits arising from the use of the identified asset duringthe period of use;
- Whether the lessee has the right to direct the use of the identified asset during the period of use.
If the contract contains multiple separate leases at the same time, the lessee and lessor will split the contract and have eachseparate lease separately subject to accounting treatment. If the contract includes lease and non-lease parts at the same time, thelessee and the lessor will split them separately.
(1) Supor as the lessee
At the beginning date of the lease term, Supor recognizes the right-of-use asset and lease obligation of the lease. The right-of-useasset is initially measured at cost, including the initial measurement amount of the lease obligation, the lease payment paid at orbefore the beginning date of the lease term (less the amount of lease incentives already granted), the initial direct expensesincurred, and the costs expected to be incurred to demolish and remove the leased asset, restore the site where the leased asset islocated or restore the leased asset to the state agreed upon in the provisions of the lease.
Supor employs the straight-line method to depreciate right-of-use assets. If the ownership of the leased assets can be reasonablyconfirmed to be obtained upon expiry of the lease term, the depreciation of leased assets shall be withdrawn by Supor during theremaining service life thereof; Otherwise, the leased asset is depreciated during the shorter of the lease term and the remainingservice life of the leased asset. Impairment provisions for right-of-use assets shall be made in accordance with the accountingpolicies described in Note V. "22. Impairment of long-term assets".
The lease obligation is initially measured at the present value of the lease payment that has not been paid at the beginning date ofthe lease term, and the discount rate is the implicit rate of the lease. If the implicit rate of the lease cannot be determined, theincremental borrowing rate of Supor shall be adopted as the discount rate.Supor calculates the interest expense of the lease obligation for each period of the lease term at a fixed periodic interest rate,which is included into the current profits and losses or relevant asset costs. The variable lease payment not included into themeasurement of lease obligations will be included into the current profits and losses or relevant asset costs when it actually occurs.In case of any of following circumstances after the beginning date of the lease term, Supor will remeasure lease obligations atthe present value of the lease payment after any change:
- Where the amount payable anticipated changes according to the guaranteed residual value;
- Where the index or ratio used for recognizing the lease payment changes;
- Where there is a change in Supor's assessment results of the option of purchase, renewal option or option of termination oflease or the actual exercising of the termination of the renewal option or option of termination of lease is inconsistent with theoriginal assessment result.
When the lease obligation is measured anew, Supor will adjust the book value of right-of-use assets accordingly. If the bookvalue of the right-of-use asset has been reduced to zero, but the lease obligation still needs to be further reduced, Supor willinclude the remaining amount in the current profits and losses.
Supor chooses not to confirm the right-of-use asset and lease obligation for short-term lease (with a lease term not exceeding 12months) and low-value asset lease (individual leased assets have a lower value when they are brand new) as well as includesrelated lease payment into the current profits and losses or relevant asset costs in each period within the lease term pursuant to thestraight-line method.
(2) Supor as the lessor
At the beginning date of the lease term, Supor divides leases into financing and operating leases. Financing lease refers to a leasein which almost all the risks and rewards related to the ownership of the leased asset are essentially transferred, regardless ofwhether the ownership is finally transferred or not. The operating lease refers to the other leases except for the financing lease.
Supor, as the lessor, provides classification of subleases based on the right-of-use assets created by the original lease rather thanthe underlying assets of the original lease. If the original lease is a short-term lease and Supor chooses to apply the simplifiedtreatment of the above short-term lease to the original lease, then Supor classifies the sublease as an operating lease.
Under financing leases, at the beginning date of the lease term, Supor confirms financing lease receivables for financing leaseand derecognizes the financial leasing assets. Supor regards the net investment in a lease as the entry value of financing leasereceivables at the time of initial measurement of financing lease receivables. The net investment in a lease is the sum of the presentvalue of unguaranteed residual value and lease receipt not received yet on the beginning date of the lease term which is subject todiscounting at the interest rate implicit in the lease term.
Supor calculates and recognizes the Interest revenue in each period within the lease term according to a fixed periodic rate. Thederecognition and impairment of financing lease receivables shall be treated in accordance with the accounting policies describedin Note V. "10. Financial Instruments" and "11. Financial assets impairment". The variable lease payment which is not includedinto the net lease investment shall be included into current profits and losses when it actually occurs.
The lease receipts of operating lease are confirmed as rent revenue in each period within the lease term in light of straight-linemethod. Supor capitalizes the initial direct expenses incurred in connection with operating leases, apportioned them over the leaseterm on the same basis as the rent revenue recognition, and recorded into the current profits and losses by stages. The variablelease payment which is not included into the lease receipt shall be included into current profits and losses when it actually occurs.
32. Related parties
If one party controls or jointly controls the other party or imposes significant impact on the other party, and two or more partiesare controlled or jointly controlled by one party, these parties are related parties. Related party can be individual or enterprise. Anenterprise that is only controlled by the state but does not have other related party relationships does not constitute a related party.In addition, the Company also determines Supor or related parties of the Company in accordance with the AdministrativeMeasures for the Disclosure of Information of Listed Companies promulgated by the CSRC.
33. Segment reporting
Please refer to Note XVIII. "1. Segment information" for details of accounting policies related to segment reporting.
34. Other important accounting policies and estimates
(1) Repurchased shares
If Supor reduces its capital by acquiring the stocks of the Company with approval, then it shall reduce share captial according tothe total amount of the face value of cancelled stocks, and adjust owners' equities according to the difference between the pricepaid to purchase stocks back (including transaction cost) and the face value of stocks. The part exceeding the total face value shallwrite down capital reserve (share capital premium), surplus reserve and undistributed profit. If the price is lower than the total facevalue, then the part lower shall be added with capital reserve (share capital premium).
Shares repurchased by Supor shall be managed as treasury shares before they are cancelled or transferred; total expenditure ofrepurchased shares shall be transferred as the cost of treasury shares.
When treasury shares are transferred, the part higher than their cost shall increase capital reserve (share capital premium); thepart lower than their cost shall write down capital reserve (share capital premium), surplus reserve and undistributed profit insequence.
If Supor repurchase shares for the reason of equity incentive, it shall treat all expenses on shares repurchase as treasury shareswhile repurchasing and make registration for future reference.
(2) Fair value measurement
Fair value refers to the price that a market participant can obtain or needs to pay after selling an asset or transferring a liabilityamong the orderly transactions made on the measurement date. Supor measures relevant asset or liability and considers thecharacteristics of this asset or liability at fair value; supposes the selling of assets or transfer of liabilities by a market participant isan orderly transaction under current market conditions; supposes the orderly selling of assets or transfer of liabilities is carried outin the main market of relevant assets or liabilities; supposes the transaction is made in the most favorable market for relevantassets or liabilities when there is no main market. Supor adopts the assumptions that market participants use to maximize theireconomic benefits when they price assets or liabilities.
Supor judges whether the fair value at initial recognition equals to its transaction price according to transaction nature and thecharacteristics of relevant assets or liabilities; if the transaction price is not equal to the fair value, relevant gains or losses will beincluded into the current profits and losses, unless otherwise specified by relevant accounting standards.
Supor adopts the valuation technique that is applicable to the current situation and has enough available data and otherinformation to support. Mainly used valuation techniques include market approach, income approach and cost method. In theapplication of valuation techniques, relevant observable input values shall be used first, and unobserved input values can only beused when relevant observable input values cannot be obtained or it is not feasible to obtain them.
Input values used by Supor for fair value measurement is divided into 3 levels. The first level of input values will be used first,and then the second level and the third level. First-level input values are the quotations of same assets or liabilities that can be
obtained on the measurement date and are not adjusted in the active market; second-level input values are the direct or indirectobservable input values of relevant assets or liabilities other than the first-level input values; third-level input values are theunobservable input values of relevant assets or liabilities.
Supor measures non-financial assets with fair value, considers market participant's ability to use them in the best way to generateeconomic benefits, or the ability to sell assets to other market participants who can use them in the best way to generate economicbenefits. To measure a liability with fair value, it is supposed that this liability is transferred to other market participants on themeasurement date, and further exists after transfer, and the market participant, who is the transferee, performs obligations. Tomeasure one's own equity instrument with fair value, it is supposed that this equity instrument is transferred to other marketparticipants on the measurement date, and further exits after transfer, and the market participant, as the transferee, obtains relevantrights to this instrument and undertakes corresponding obligations.
35. Change of important accounting policies and estimates
(1) Change of important accounting policies
□ Applicable ? Not-applicable
(2) Change of important accounting estimates
□ Applicable ? Not-applicable
(3) Adjustment of related items in the financial statements at the beginning of the year from 2024 following the firstimplementation of the New Accounting Standards
□ Applicable ? Not-applicable
VI. Taxes
1. Main taxes and tax rates
| Tax | Tax base | Tax rate |
| VAT | The taxable revenue from sales of commodities or rendering of services | Taxable income is calculated at output tax rates of 0, 6%, 9%, and 13%, and VAT is calculated based on the difference after deducting the input tax allowable for the current period. |
| Urban maintenance and construction tax | VAT payable | 7% |
| Enterprise income tax | Taxable income | The corporate income tax rate is 25%. Shaoxing Supor, Zhejiang WMF and Hainan Supor E-Commerce Company are taxed at a preferential tax rate of 15%; Wuhan Recycling and Shanghai Marketing are taxed at a preferential tax rate of 20%; for overseas subsidiaries, Indonesian Company is taxed at a 22% rate, Supor Vietnam and AFS are taxed at 20%, and SEADA is taxed at 17%. |
| Education surcharge | VAT payable | 3% |
| Local education surcharge | VAT payable | 2% |
| Housing property tax | 1.2% of the residual value after deducting 30% of the original value of the property is calculated and paid in case of ad valorem; for housing property levied on the basis of rent, housing property tax is levied at the rate of 12% of rent revenue. | 1.2%, 12% |
2. Tax preferences
Pursuant to GKH Zi [2020] No. 32 document, Shaoxing Supor and Zhejiang WMF passed the hi-tech enterprise qualification in2022 and is entitled to enjoy the preferential tax rate of 15% for the three-year period starting from January 1, 2022.According to the Enterprise Income Tax Law of the People's Republic of China and its implementation regulations, the Notice onPreferential Policies for Enterprise Income Tax in Hainan Free Trade Port (CS [2020] No.31) as well other provisions, businessincome tax will be levied at a rate of 15% for encouraged industrial enterprises registered and substantially operating in the HainanFree Trade Port from January 1, 2020 to December 31, 2024. Meeting the e-commerce in the encouraged industries catalogue,Hainan Supor E-commerce Company applies the preferential tax rate of 15% in 2024.
According to the Announcement of the Ministry of Finance and the State Administration of Taxation on the Preferential Policiesfor Income Tax of Small and Micro Enterprises and Individual Businesses (Announcement No. 6 of 2023), the portion of theannual taxable income of small and micro profit enterprises that does not exceed RMB 1 million shall be reduced by 25% andincluded in the taxable income, and enterprise income tax shall be paid at a tax rate of 20% from January 1, 2023 to December 31,2024. At the same time, according to the Announcement of the Ministry of Finance and the State Taxation Administration onFurther Implementing the Preferential Income Tax Policies for Micro and Small Enterprises (CS [2022] No. 13), from January 1,2022 to December 31, 2024, the part of the annual taxable income of small and micro enterprises that exceeds RMB 1 million, butdoes not exceed RMB 3 million will be included into the taxable income at a reduced rate of 25%, and the enterprise income taxwill be paid at a tax rate of 20%. Wuhan Recycling and Shanghai Marketing meet the criteria for small low-profit enterprises in2024, so the preferential tax rate of 20% is applicable in 2024.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 61,768.13 | 62,594.14 |
| Cash in bank | 1,679,560,812.34 | 2,964,417,369.53 |
| Other monetary capitals | 314,472,379.78 | 583,797,478.77 |
| Total | 1,994,094,960.25 | 3,548,277,442.44 |
| Including: deposits overseas | 39,811,870.33 | 61,122,895.90 |
Other remarks
1) As of June 30, 2024, there was no frozen bank account balances related to the subsidiaries that have not been cancelled (December31, 2023: RMB 30,423.72). The total bank deposits of RMB 1,679,560,812.34 are all unrestricted, with RMB 52,256,164.38 beingheld in term deposit with a maturity of more than three months.
2) As at June 30, 2024, other monetary capitals at the end of the period included RMB 214,338,000.00 (December 31, 2023: RMB476,860,000.00) of the security for restricted acceptance bills, RMB 929,102.94 (December 31, 2023: RMB 613,739.88) of thesecurity for e-commerce platforms, RMB 58,000,000.00 (December 31, 2023: RMB 58,000,000.00) of the security for the depositsof the advance payment financing business, and RMB 41,205,276.84 (December 31, 2023: RMB 48,323,738.89) of the non-restricted
currency funds of the Alipay wallet, JD wallet, TikTok wallet, securities settlement accounts, futures settlement accounts and Youzanaccount, etc.
3) As of June 30, 2024, the monetary capital held by Supor in Vietnam totaled RMB 23,621,105.52 (December 31, 2023: equivalentto RMB 44,335,548.85); the monetary capital deposited in Singapore amounted to RMB 4,479,966.21 (December 31, 2023:
amounted to RMB 4,491,068.45); The monetary capital held in Indonesia totaled RMB 11,710,798.60 (December 31, 2023:
equivalent to RMB 12,296,278.60).
2. Transactional financial assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Financial assets measured at the fair value with their changes included into the current profits and losses. | 180,164,631.01 | 351,137,787.54 |
| Including: | ||
| - Short-term financial products | 180,164,631.01 | 351,137,787.54 |
| Total | 180,164,631.01 | 351,137,787.54 |
Other remarksAs at June 30, 2024, the financial assets measured at the fair value with their changes included into the current profits and lossesare the financial products purchased by Supor, amounting to RMB 180,000,000.00 (December 31, 2023: RMB 350,000,000.00).These financial products with floating income, and linked to interest rates and exchange rates, etc., and the corresponding gainsfrom changes in fair value, i.e. RMB 164,631.01 (December 31, 2023: RMB 1,137,787.54), were recognized at the end of thecurrent period.
3. Notes receivable
(1) Details on categories
Unit: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance bill | 11,404,422.19 | 15,311,935.98 |
| Total | 11,404,422.19 | 15,311,935.98 |
(2) Classified disclosure by the bad debt provision method
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Notes receivable for provision for bad debts made on the basis of portfolio | 11,404,422.19 | 100.00% | 11,404,422.19 | 15,311,935.98 | 100.00% | 15,311,935.98 | ||||
| Including: | ||||||||||
| Portfolio: bank | 11,404,422.19 | 100.00% | 11,404,422.19 | 15,311,935.98 | 100.00% | 15,311,935.98 | ||||
| acceptance bill | ||||||||||
| Total | 11,404,422.19 | 100.00% | 11,404,422.19 | 15,311,935.98 | 100.00% | 15,311,935.98 |
If provision for bad debts for notes receivable is made based on the general model of expected credit losses:
□ Applicable ? Not-applicable
(3) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in current period | Closing balance | |||
| Accrued | Collected or reversed | Written off | Others | |||
| Bank acceptance bill | ||||||
Wherein, important amounts of provision for bad debts collected or reversed in the current period:
□ Applicable ? Not-applicable
(4) Notes receivables that the Company has pledged at the end of the periodAs of June 30, 2024, Supor had no notes receivable pledged (December 31, 2023: None).
(5) Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
Unit: RMB
| Item | Closing balance derecognized | Closing balance not derecognized |
| Bank acceptance bill | 11,404,422.19 | |
| Total | 11,404,422.19 |
(6) Other explanations
By June 30, 2024, Supor's undue and endorsed notes receivable of RMB 11,404,422.19 (December 31, 2023, RMB 10,761,655.33)have not been recognized as notes transferred to the suppliers to settle the amount payable. This is mainly because that, accordingto the management, the risks and remunerations attached to the ownership of the notes have not been actually transferred. Thebook values of the said undue notes receivable approximate their fair values. The said undue notes receivable will get maturewithin 1 year.
(7) Notes the Company transfers to accounts receivable due to the drawer's failure to perform thecontract at the end of the periodAs at June 30, 2024, Supor had no notes transferred to accounts receivable due to non-performance of drawers. (December 31,2023: None)
4. Accounts receivable
(1) Disclosure by aging
Unit: RMB
| Ages | Ending book balance | Beginning book balance |
| Within 1 year (including 1 year) | 3,394,275,461.34 | 2,956,340,005.74 |
| 1-2 years | 7,831,263.08 | 7,090,033.51 |
| 2-3 years | 286,541.82 | 1,283,949.52 |
| Over 3 years | 1,214,507.57 | 880,404.97 |
| 3-4 years | 385,517.40 | 127,479.68 |
| 4-5 years | 149,712.81 | 96,637.91 |
| Over 5 years | 679,277.36 | 656,287.38 |
| Total | 3,403,607,773.81 | 2,965,594,393.74 |
(2) Classified disclosure by the bad debt provision method
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Accounts receivable for provision made on an individual basis | 195,920.38 | 0.01% | 195,920.38 | 100.00% | 195,920.38 | 0.01% | 195,920.38 | 100.00% | ||
| Accounts receivable for provision for bad debts made on the basis of portfolio | 3,403,411,853.43 | 99.99% | 123,543,643.63 | 3.63% | 3,279,868,209.80 | 2,965,398,473.36 | 99.99% | 107,151,117.33 | 3.61% | 2,858,247,356.03 |
| Including: | ||||||||||
| Portfolio 1: age portfolio | 3,338,169,286.96 | 98.07% | 123,478,401.06 | 3.70% | 3,214,690,885.90 | 2,843,635,733.09 | 95.89% | 107,029,354.59 | 3.76% | 2,736,606,378.50 |
| Portfolio 2: low-risk portfolio | 65,242,566.47 | 1.92% | 65,242.57 | 0.10% | 65,177,323.90 | 121,762,740.27 | 4.10% | 121,762.74 | 0.10% | 121,640,977.53 |
| Total | 3,403,607,773.81 | 100.00% | 123,739,564.01 | 3.64% | 3,279,868,209.80 | 2,965,594,393.74 | 100.00% | 107,347,037.71 | 3.62% | 2,858,247,356.03 |
Provision for bad debts made on an individual basis: RMB 195,920.38
Unit: RMB
| Name | Opening balance | Closing balance | ||||
| Book balance | Provision for bad | Book balance | Provision for bad | Provision proportion | Reasons | |
| debts | debts | |||||
| Customers A | 41,463.78 | 41,463.78 | 41,463.78 | 41,463.78 | 100.00% | It is not expected to be recovered, so the provision for bad debts is fully accrued. |
| Customer B | 75,662.72 | 75,662.72 | 75,662.72 | 75,662.72 | 100.00% | It is not expected to be recovered, so the provision for bad debts is fully accrued. |
| Customer C | 78,793.88 | 78,793.88 | 78,793.88 | 78,793.88 | 100.00% | It is not expected to be recovered, so the provision for bad debts is fully accrued. |
| Total | 195,920.38 | 195,920.38 | 195,920.38 | 195,920.38 |
The number of categories for provision for bad debts by portfolio: Portfolio 1Provision for bad debts made on the basis of portfolio: RMB 123,478,401.06
Unit: RMB
| Name | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year (including 1 year) | 3,329,032,894.87 | 121,965,807.66 | 3.66% |
| 1-2 years (including 2 years) | 7,831,263.08 | 626,501.05 | 8.00% |
| 2-3 years (including 3 years) | 286,541.82 | 42,981.27 | 15.00% |
| 3-4 years (including 4 years) | 350,598.68 | 175,299.34 | 50.00% |
| 4-5 years (including 5 years) | 827.30 | 661.84 | 80.00% |
| Over 5 years | 667,161.21 | 667,149.90 | 100.00% |
| Total | 3,338,169,286.96 | 123,478,401.06 | |
Explanation on the basis for determining such portfolio:
The expected credit loss rate is calculated upon the experience in actual credit loss, and adjusted based on the difference betweenthe economy during the historic period of data collection, the current economy and the economy during the duration expected bySupor.If provision for bad debts for accounts receivable is made based on the general model of expected credit losses:
□ Applicable ? Not-applicable
(3) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in current period | Closing balance | |||
| Accrued | Collected or reversed | Written off | Others | |||
| Provision for bad debts for accounts receivable | 107,347,037.71 | 16,636,225.12 | -48,398.00 | -195,300.82 | 123,739,564.01 | |
| Total | 107,347,037.71 | 16,636,225.12 | -48,398.00 | -195,300.82 | 123,739,564.01 | |
Decreased provision for bad debts of RMB 195,300.82 for conversion difference in foreign currency statement caused by thechange in exchange rate.
(4) Accounts receivable actually written off in current period
Unit: RMB
| Item | Amount |
| Accounts receivable actually written off | 48,398.00 |
Including significant accounts receivable written off:
None
(5) Accounts receivable and contract assets details of the top 5 closing balances by debtors
Unit: RMB
| Entity name | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Proportion to the total closing balance of accounts receivable and contract assets | Provision for bad debts for accounts receivable and closing balance of contract asset impairment provision |
| SEB S.A. and its affiliates | 2,220,687,352.01 | 65.25% | 66,622,394.08 | ||
| Customer D | 509,646,342.58 | 14.97% | 25,549,572.16 | ||
| Customer E | 60,936,942.51 | 1.79% | 3,046,847.13 | ||
| Customer F | 53,451,863.60 | 1.57% | 2,672,593.18 | ||
| Customer G | 44,478,402.77 | 1.31% | 44,478.40 | ||
| Total | 2,889,200,903.47 | 84.89% | 97,935,884.95 |
5. Receivables financing
(1) Presentation of receivables financing in classification
Unit: RMB
| Item | Closing balance | Opening balance |
| Notes receivable | 193,637,531.38 | 363,532,765.35 |
| Total | 193,637,531.38 | 363,532,765.35 |
Other remarks:
Supor endorses or discounts certain bank acceptance bills by the needs of day-to-day fund management. Taking into account of theamount and frequency of endorsement or discount of bank acceptance bills, Supor determines that the objective of such businessmodel is to receive contractual cash flows and sell the notes receivable simultaneously, and therefore, such notes receivable areclassified into financial assets measured at the fair value with their changes included into other comprehensive incomes, andpresented as receivables financing.As of June 30, 2024, Supor had no receivables financing pledged (December 31, 2023: None).
(3) Endorsed or discounted receivables financing undue at the balance sheet date at the end of the year ofthe Company
Unit: RMB
| Item | Closing balance derecognized | Closing balance not derecognized |
| Bank acceptance bill | 3,286,653,789.20 | |
| Total | 3,286,653,789.20 |
Other remarksIn order to settle part of the payables, Supor endorses the equal amount of undue notes receivable to the suppliers, and themanagement of Supor considers that certain undue notes meet the conditions, that is, almost all risks and remuneration pertainingto ownership have been transferred and meanwhile the current obligations of the relevant payables have been fully discharged,thus the relevant notes and payables are derecognized. The possible greatest loss undertaken by Supor for the continuedinvolvement therein is the amount of the undue notes receivable endorsed by Supor to suppliers. The said undue notes receivablewill get mature within 1 year.
6. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 20,572,845.75 | 16,126,721.38 |
| Total | 20,572,845.75 | 16,126,721.38 |
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
| Nature of receivables | Ending book balance | Beginning book balance |
| Deposit as security | 12,869,641.99 | 11,391,814.36 |
| Temporary payment receivable | 9,880,974.30 | 6,972,323.05 |
| Personal deposit | 1,648,978.13 | 1,457,137.01 |
| Tax refund receivable | 1,384,648.84 | 996,927.07 |
| Total | 25,784,243.26 | 20,818,201.49 |
2) Disclosure by aging
Unit: RMB
| Ages | Ending book balance | Beginning book balance |
| Within 1 year (including 1 year) | 15,218,293.78 | 12,043,858.73 |
| 1-2 years | 5,242,662.86 | 3,460,785.69 |
| 2-3 years | 2,320,543.24 | 2,570,919.30 |
| Over 3 years | 3,002,743.38 | 2,742,637.77 |
| 3-4 years | 480,555.89 | 688,905.05 |
| 4-5 years | 695,223.15 | 251,762.10 |
| Over 5 years | 1,826,964.34 | 1,801,970.62 |
| Total | 25,784,243.26 | 20,818,201.49 |
3) Classified disclosure by the bad debt provision method
? Applicable □ Not-applicable
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Accounts receivable for provision made on an individual basis | 1,190,578.89 | 4.62% | 1,190,578.89 | 100.00% | 0.00 | 1,190,578.89 | 5.72% | 1,190,578.89 | 100.00% | |
| Notes receivable for provision for bad debts made on the basis of portfolio | 24,593,664.37 | 95.38% | 4,020,818.62 | 16.35% | 20,572,845.75 | 19,627,622.60 | 94.28% | 3,500,901.22 | 17.84% | 16,126,721.38 |
| Including: | ||||||||||
| Portfolio 1: age portfolio | 23,209,015.46 | 90.01% | 4,020,818.62 | 17.32% | 19,188,196.84 | 18,630,695.53 | 89.49% | 3,500,901.22 | 18.79% | 15,129,794.31 |
| Portfolio 2: low-risk portfolio | 1,384,648.91 | 5.37% | 0.00% | 1,384,648.91 | 996,927.07 | 4.79% | 996,927.07 | |||
| Total | 25,784,243.26 | 100.00% | 5,211,397.51 | 20.21% | 20,572,845.75 | 20,818,201.49 | 100.00% | 4,691,480.11 | 22.54% | 16,126,721.38 |
Accounts receivable for provision made on an individual basis: RMB 1,190,578.89
Unit: RMB
| Name | Opening balance | Closing balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision proportion | Reasons | |
| Customer H | 1,187,578.89 | 1,187,578.89 | 1,187,578.89 | 1,187,578.89 | 100.00% | It is not expected to be recovered, so the provision for bad debts is fully accrued. |
| Customer I | 3,000.00 | 3,000.00 | 3,000.00 | 3,000.00 | 100.00% | It is not expected to be recovered, so the provision for bad debts is fully accrued. |
| Total | 1,190,578.89 | 1,190,578.89 | 1,190,578.89 | 1,190,578.89 | ||
The number of categories for provision for bad debts by portfolio: Portfolio 1Provision for bad debts made on the basis of portfolio: RMB 4,020,818.62
Unit: RMB
| Name | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year (including 1 year) | 12,646,065.98 | 632,303.29 | 5.00% |
| 1-2 years | 5,242,662.86 | 419,413.03 | 8.00% |
| 2-3 years | 2,320,543.24 | 348,081.49 | 15.00% |
| 3-4 years | 480,555.89 | 240,277.95 | 50.00% |
| 4-5 years | 692,223.15 | 553,778.52 | 80.00% |
| Over 5 years | 1,826,964.34 | 1,826,964.34 | 100.00% |
| Total | 23,209,015.46 | 4,020,818.62 |
Provision for bad debts based on the general model of expected credit losses
Unit: RMB
| Provision for bad debts | Phase I | Phase II | Phase III | Total |
| Expected credit loss in future 12 months | Expected credit loss in the entire duration (without credit impairment) | Expected credit loss in the entire duration (credit impairment) | ||
| Balance on January 1, 2024 | 3,500,901.22 | 1,190,578.89 | 4,691,480.11 | |
| Balance on January 1, 2024 in the current period | ||||
| Withdrawal in the current period | 526,107.52 | 526,107.52 | ||
| Other changes | -6,190.12 | -6,190.12 | ||
| Balance on June 30, 2024 | 4,020,818.62 | 1,190,578.89 | 5,211,397.51 |
Other remarks:
Decreased provision for bad debts of RMB 6,190.12 for conversion difference in foreign currency statement caused by the changein exchange rate.Changes in book balance of loss provision due to significant changes in the current period
□ Applicable ? Not-applicable
4) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in current period | Closing balance | |||
| Accrued | Collected or reversed | Write-off or charge-off | Others | |||
| Provision for bad debts of other receivables | 4,691,480.11 | 526,107.52 | -6,190.12 | 5,211,397.51 | ||
| Total | 4,691,480.11 | 526,107.52 | -6,190.12 | 5,211,397.51 | ||
5) Other receivables details of the top 5 closing balances by debtors
Unit: RMB
| Entity name | Nature of receivables | Closing balance | Ages | Proportion in the total closing balance of other receivables | Closing balance of provision for bad debts |
| Customer J | Deposit as security | 1,681,500.00 | Within 1 year | 6.52% | 84,075.00 |
| Customer K | Deposit as security/ receivable suspense debits | 1,438,619.81 | Within 1 year, 1-5 years | 5.58% | 346,130.99 |
| Tax refund receivable | Tax refund receivable | 1,384,648.84 | Within 1 year | 5.37% | |
| Customer H | Temporary payment receivable | 1,187,578.89 | Within 1 year | 4.61% | 1,187,578.89 |
| Customer L | Deposit as security | 1,180,000.00 | 2-3 years | 4.58% | 177,000.00 |
| Total | 6,872,347.54 | 26.66% | 1,794,784.88 |
7. Advance payment
(1) Listing by ages
Unit: RMB
| Ages | Closing balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 200,162,743.25 | 98.46% | 190,478,767.90 | 98.61% |
| 1-2 years | 2,804,428.10 | 1.38% | 2,453,401.67 | 1.27% |
| 2-3 years | 222,369.71 | 0.11% | 123,148.33 | 0.06% |
| Over 3 years | 108,335.16 | 0.05% | 114,137.61 | 0.06% |
| Total | 203,297,876.22 | 193,169,455.51 | ||
(2) Advance payment of the top 5 closing balances by prepayment objects
Unit: RMB
| Entity name | Book balance | Proportion in the balance of advance payment (%) |
| Supplier A | 28,414,994.72 | 13.98% |
| Supplier B | 22,123,718.16 | 10.88% |
| Supplier C | 17,230,675.03 | 8.48% |
| Supplier D | 15,511,139.21 | 7.63% |
| Supplier E | 15,336,851.10 | 7.54% |
| Subtotal | 98,617,378.22 | 48.51% |
Other remarks:
Aging was calculated from the date of confirmation of advance payment.
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industryNo
(1) Inventory classification
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Inventory depreciation reserves or impairment provision for contract performance cost | Book value | Book balance | Inventory depreciation reserves or impairment provision for contract performance cost | Book value | |
| Raw materials | 365,862,802.61 | 8,169,333.16 | 357,693,469.45 | 339,021,663.87 | 8,468,573.73 | 330,553,090.14 |
| Unfinished products | 100,949,101.51 | 100,949,101.51 | 93,073,750.61 | 93,073,750.61 | ||
| Finished products | 1,445,573,473.78 | 16,700,576.12 | 1,428,872,897.66 | 1,739,751,597.38 | 16,482,797.36 | 1,723,268,800.02 |
| Low value consumables | 95,005,347.52 | 1,620.00 | 95,003,727.52 | 108,345,465.67 | 82,857.41 | 108,262,608.26 |
| Packing materials | 9,336,113.52 | 9,336,113.52 | 7,525,138.28 | 7,525,138.28 | ||
| Total | 2,016,726,838.94 | 24,871,529.28 | 1,991,855,309.66 | 2,287,717,615.81 | 25,034,228.50 | 2,262,683,387.31 |
(2) Inventory depreciation reserves and impairment provision for contract performance cost
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance | ||
| Accrued | Others | Reversal or write-off | Others | |||
| Raw materials | 8,468,573.73 | 1,635,552.00 | 1,823,673.62 | 111,118.95 | 8,169,333.16 | |
| Finished products | 16,482,797.36 | 4,780,709.33 | 4,551,867.69 | 11,062.88 | 16,700,576.12 | |
| Low value consumables | 82,857.41 | 81,237.41 | 1,620.00 | |||
| Total | 25,034,228.50 | 6,416,261.33 | 6,456,778.72 | 122,181.83 | 24,871,529.28 | |
Other changes include a decrease in the conversion difference of foreign currency statements due to change in exchange rate,resulting in a reduction of RMB 111,118.95 in the inventory depreciation reserve for raw materials and a reduction of RMB11,062.88 in the inventory write-down provision for finished product.
Unit: RMB
| Portfolio name | End of this reporting period | Beginning of this reporting period | ||||
| Closing balance | Falling price reserve | Falling price provision ratio | Opening balance | Falling price reserve | Falling price provision ratio | |
| Raw materials | 365,862,802.61 | 8,169,333.16 | 2.23% | 339,021,663.87 | 8,468,573.73 | 2.50% |
| Finished products | 1,445,573,473.78 | 16,700,576.12 | 1.16% | 1,739,751,597.38 | 16,482,797.36 | 0.95% |
| Low value consumables | 95,005,347.52 | 1,620.00 | 0.00% | 108,345,465.67 | 82,857.41 | 0.08% |
| Total | 1,906,441,623.91 | 24,871,529.28 | 2,187,118,726.92 | 25,034,228.50 |
9. Non-current assets due within one year
Unit: RMB
| Item | Closing balance | Opening balance |
| Other debt investments due within one year | 485,691,958.90 | 285,783,958.92 |
| Total | 485,691,958.90 | 285,783,958.92 |
(1) Debt investment due within one year
□ Applicable ? Not-applicable
(2) Other debt investment due within one year
? Applicable □ Not-applicable
(1) Other debt investment due within one year
Unit: RMB
| Item | Opening balance | Accrued interest | Interest adjustment | Fair value changes in the current period | Closing balance | Cost | Accumulated fair value changes | Impairment provision that are cumulatively determined in other comprehensive incomes | Remarks |
| Negotiable certificates of deposit | 285,783,958.92 | 35,775,229.55 | -83,270.65 | 485,691,958.90 | 450,000,000.00 | ||||
| Total | 285,783,958.92 | 35,775,229.55 | -83,270.65 | 485,691,958.90 | 450,000,000.00 |
(2) Other important debt investment due within one year at the end of the period
Unit: RMB
| Other creditors' rights items | Closing balance | Opening balance | ||||||||
| Face value | Coupon rate | Effective interest rate | Expiry date | Overdue principal | Face value | Coupon rate | Effective interest rate | Expiry date | Overdue principal | |
| Shaoxing Supor Housewares - China Guangfa Bank negotiable certificates of deposit | 200,000,000.00 | 3.55% | 3.43% | April 21, 2025 | ||||||
| Shaoxing Supor - Bank of China negotiable certificates of deposit | 140,000,000.00 | 3.35% | 3.32% | March 3, 2025 | ||||||
| Total | 340,000,000.00 |
10. Other current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Return cost receivable | 12,589,289.98 | 15,285,358.91 |
| Creditable VAT | 120,906,931.29 | 111,403,625.69 |
| Others | 2,648,916.37 | 15,734,711.62 |
| Total | 136,145,137.64 | 142,423,696.22 |
11. Other debt investments
(1) Other debt investment
Unit: RMB
| Item | Opening balance | Accrued interest | Interest adjustment | Fair value changes in the current period | Closing balance | Cost | Accumulated fair value changes | Impairment provision that are cumulatively determined in other comprehensive incomes | Remarks |
| Negotiable certificates of deposit | 951,306,342.48 | 45,340,134.05 | -211,353.25 | 715,128,780.80 | 670,000,000.00 | ||||
| Minus: Part due within one year | -285,783,958.92 | -35,775,229.55 | 83,270.65 | -485,691,958.90 | -450,000,000.00 | ||||
| Total | 665,522,383.56 | 9,564,904.50 | -128,082.60 | 229,436,821.90 | 220,000,000.00 |
(2) Other important debt investment at the end of the period
Unit: RMB
| Other creditors' rights items | Closing balance | Opening balance | ||||||||
| Face value | Coupon rate | Effective interest rate | Expiry date | Overdue principal | Face value | Coupon rate | Effective interest rate | Expiry date | Overdue principal | |
| Shaoxing Supor Housewares - China Guangfa Bank negotiable certificates of deposit | 200,000,000.00 | 3.55% | 3.43% | April 21, 2025 | ||||||
| Shaoxing Supor - Bank of China negotiable certificates of deposit | 140,000,000.00 | 3.35% | 3.32% | March 3, 2025 | ||||||
| Total | 340,000,000.00 | |||||||||
12 Long-term equity investment
Unit: RMB
| Invested unit | Opening balance (book value) | Opening balance of impairment provision | Increase/decrease | Closing balance (book value) | Closing balance of impairment provision | |||||||
| Investment increased | Investment decreased | Investment profit or loss recognized by equity method | Adjustment in other comprehensive income | Changes in other equity | Cash dividend/ profit declared for distribution | Accrued impairment provision | Others | |||||
| I. Joint Venture | ||||||||||||
| II. Associated Enterprise | ||||||||||||
| Wuhan Anzai Cookware Co., Ltd. | 61,678,984.35 | -720,742.08 | 60,958,242.27 | |||||||||
| Subtotal | 61,678,984.35 | -720,742.08 | 60,958,242.27 | |||||||||
| Total | 61,678,984.35 | -720,742.08 | 60,958,242.27 | |||||||||
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable ? Not-applicable
The recoverable amount is determined based on the present value of estimated future cash flow of assets
□ Applicable ? Not-applicable
13. Fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 1,188,793,243.58 | 1,243,210,689.64 |
| Total | 1,188,793,243.58 | 1,243,210,689.64 |
(1) Fixed assets
Unit: RMB
| Item | Buildings and structures | General equipment | Special equipment | Transport facilities | Total |
| I. Original Book Value: | |||||
| 1. Opening balance | 1,234,240,411.28 | 295,292,863.08 | 965,149,950.66 | 34,174,160.70 | 2,528,857,385.72 |
| 2. Increase | 498,215.19 | 5,424,266.23 | 13,422,507.02 | 800,753.79 | 20,145,742.23 |
| (1) Acquisition | 498,215.19 | 5,371,600.75 | 11,837,175.96 | 800,753.79 | 18,507,745.69 |
| (2) Transferred in from construction in progress | 52,665.48 | 1,585,331.06 | 1,637,996.54 | ||
| (3) Increase from enterprise merger | |||||
| 3. Decrease | 5,225,257.22 | 2,471,548.70 | 9,795,996.63 | 822,781.52 | 18,315,584.07 |
| (1) Disposal or scrapping | 5,225,257.22 | 2,471,548.70 | 9,795,996.63 | 822,781.52 | 18,315,584.07 |
| (2) Transfer into construction in progress |
| 4. Impact of change in exchange rate | -1,267,429.39 | -319,985.31 | -2,637,534.23 | -108,330.17 | -4,333,279.10 |
| 5. Closing balance | 1,228,245,939.86 | 297,925,595.30 | 966,138,926.82 | 34,043,802.80 | 2,526,354,264.78 |
| II. Accumulated Depreciation | |||||
| 1. Opening balance | 417,002,264.73 | 223,951,178.16 | 617,795,971.50 | 26,593,506.97 | 1,285,342,921.36 |
| 2. Increase | 22,334,478.25 | 12,886,972.39 | 28,565,485.82 | 1,362,452.83 | 65,149,389.29 |
| (1) Provision | 22,334,478.25 | 12,886,972.39 | 28,565,485.82 | 1,362,452.83 | 65,149,389.29 |
| 3. Decrease | 2,399,849.72 | 7,843,868.57 | 794,938.70 | 11,038,656.99 | |
| (1) Disposal or scrapping | 2,399,849.72 | 7,843,868.57 | 794,938.70 | 11,038,656.99 | |
| (2) Transfer into construction in progress | |||||
| 4. Impact of change in exchange rate | -476,769.16 | -225,560.70 | -1,308,494.50 | -93,565.40 | -2,104,389.76 |
| 5. Closing balance | 438,859,973.82 | 234,212,740.13 | 637,209,094.25 | 27,067,455.70 | 1,337,349,263.90 |
| III. Impairment Provision | |||||
| 1. Opening balance | 303,774.72 | 303,774.72 | |||
| 2. Increase | |||||
| (1) Provision | |||||
| 3. Decrease | 92,017.42 | 92,017.42 | |||
| (1) Disposal or scrapping | 92,017.42 | 92,017.42 | |||
| 4. Closing balance | 211,757.30 | 211,757.30 | |||
| IV. Book Value | |||||
| 1. Closing book value | 789,385,966.04 | 63,501,097.87 | 328,929,832.57 | 6,976,347.10 | 1,188,793,243.58 |
| 2. Opening book value | 817,238,146.55 | 71,037,910.20 | 347,353,979.16 | 7,580,653.73 | 1,243,210,689.64 |
(2) Fixed assets with certificate of titles unsettled
Unit: RMB
| Item | Book value | Reasons for unsettlement |
| Function dormitory of Shaoxing Supor | 32,996,799.93 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| No.3 plant of Shaoxing Supor | 24,519,224.27 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| No.1 plant of Shaoxing Supor | 22,816,586.33 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| No.8 plant of Shaoxing Supor | 27,145,967.17 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| Function cafeteria of Shaoxing Supor | 8,882,114.61 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| No.12 plant of Shaoxing Supor | 11,598,731.60 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership |
| certificate shall be processed uniformly | ||
| Transformer substation (35 kV) of Shaoxing Supor | 1,075,101.61 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| No.13 plant of Shaoxing Supor | 15,121,149.93 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| No.14 plant of Shaoxing Supor | 23,071,838.57 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| No.15 plant of Shaoxing Supor | 40,089,807.44 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| Forklift charging room of Shaoxing Supor | 820,828.61 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| No.13-B warehouse project of Shaoxing Supor | 13,013,916.14 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| Generator room of P&R Products | 713.89 | Transfer procedures of land use right certificate were not settled due to land ownership issue |
| Water pump building and structures of P&R Products | 64,731.52 | Transfer procedures of land use right certificate were not settled due to land ownership issue |
| Extended plant for bakelite workshop of P&R Products | 142,879.43 | Transfer procedures of land use right certificate were not settled due to land ownership issue |
| Polishing workshop of P&R Products | 72,000.00 | Transfer procedures of land use right certificate were not settled due to land ownership issue |
| Total | 221,432,391.05 |
14. Construction in progress
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 69,151,667.36 | 26,862,380.61 |
| Total | 69,151,667.36 | 26,862,380.61 |
(1) Details of construction in progress
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Shaoxing Supor Fire-fighting Modification Project | 60,377,948.32 | 60,377,948.32 | 20,185,019.07 | 20,185,019.07 | ||
| Piecemeal projects | 6,168,464.76 | 6,168,464.76 | 5,844,384.84 | 5,844,384.84 | ||
| Equipment payment | 2,605,254.28 | 2,605,254.28 | 832,976.70 | 832,976.70 | ||
| Total | 69,151,667.36 | 69,151,667.36 | 26,862,380.61 | 26,862,380.61 | ||
(2) Impairment test of construction in progress
□ Applicable ? Not-applicable
15 Right-of-use assets
(1) Right-of-use assets
Unit: RMB
| Item | Buildings and structures | Land | Total |
| I. Original Book Value: | |||
| 1. Opening balance | 342,434,143.81 | 3,283,631.77 | 345,717,775.58 |
| 2. Increase | 14,233,468.47 | 14,233,468.47 | |
| 3. Decrease | 15,293,432.74 | 15,293,432.74 | |
| 4. Impact of change in exchange rate | -51,503.77 | -104,543.94 | -156,047.71 |
| 5. Closing balance | 341,322,675.77 | 3,179,087.83 | 344,501,763.60 |
| II. Accumulated Depreciation | |||
| 1. Opening balance | 121,901,162.50 | 313,039.94 | 122,214,202.44 |
| 2. Increase | 24,491,558.39 | 44,241.06 | 24,535,799.45 |
| (1) Provision | 24,491,558.39 | 44,241.06 | 24,535,799.45 |
| 3. Decrease | 5,092,699.49 | 5,092,699.49 | |
| (1) Disposal | 5,092,699.49 | 5,092,699.49 | |
| 4. Impact of change in exchange rate | -12,198.68 | -7,565.49 | -19,764.17 |
| 5. Closing balance | 141,287,822.72 | 349,715.51 | 141,637,538.23 |
| III. Impairment Provision | |||
| IV. Book Value | |||
| 1. Closing book value | 200,034,853.05 | 2,829,372.32 | 202,864,225.37 |
| 2. Opening book value | 220,532,981.31 | 2,970,591.83 | 223,503,573.14 |
(2) Impairment test of right-of-use assets
□ Applicable ? Not-applicable
16. Intangible assets
(1) Details
Unit: RMB
| Item | Land use right | Trademark use right | Software | Pollutant discharge right | Total |
| I. Original Book Value: | |||||
| 1. Opening balance | 474,966,791.54 | 47,328,811.32 | 102,286,810.21 | 9,894,760.97 | 634,477,174.04 |
| 2. Increase | 1,879,957.66 | 1,879,957.66 | |||
| (1) Acquisition | 1,879,957.66 | 1,879,957.66 | |||
| (2) In-house R&D | |||||
| (3) Increase from enterprise merger | |||||
| 3. Decrease | |||||
| (1) Disposal | |||||
| 4. Impact of change in exchange rate | -197,389.75 | -35,239.80 | -232,629.55 | ||
| 5. Closing balance | 474,769,401.79 | 47,328,811.32 | 104,131,528.07 | 9,894,760.97 | 636,124,502.15 |
| II. Accumulated Amortization | |||||
| 1. Opening balance | 108,421,816.13 | 37,817,999.03 | 57,279,563.96 | 1,978,952.20 | 205,498,331.32 |
| 2. Increase | 4,986,827.58 | 2,366,440.57 | 5,360,591.70 | 989,476.10 | 13,703,335.95 |
| (1) Provision | 4,986,827.58 | 2,366,440.57 | 5,360,591.70 | 989,476.10 | 13,703,335.95 |
| 3. Decrease | |||||
| (1) Disposal | |||||
| 4. Impact of change in exchange rate | -73,990.25 | -27,812.03 | -101,802.28 | ||
| 5. Closing balance | 113,334,653.46 | 40,184,439.60 | 62,612,343.63 | 2,968,428.30 | 219,099,864.99 |
| III. Impairment Provision | |||||
| IV. Book Value | |||||
| 1. Closing book value | 361,434,748.33 | 7,144,371.72 | 41,519,184.44 | 6,926,332.67 | 417,024,637.16 |
| 2. Opening book value | 366,544,975.41 | 9,510,812.29 | 45,007,246.25 | 7,915,808.77 | 428,978,842.72 |
At the end of the current period, the proportion of intangible assets formed through internal R&D in the balance of intangibleassets is 0.00%.
17. Deferred income tax assets/deferred income tax liabilities
(1) Un-offset deferred income tax assets
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Impairment provision of assets | 137,543,096.69 | 29,238,278.27 | 121,098,089.15 | 26,260,667.30 |
| Profits not realized by internal transaction | 68,893,204.30 | 16,399,850.27 | 69,741,065.39 | 16,436,357.10 |
| Deductible losses | 17,360,132.43 | 4,153,834.04 | 18,987,969.57 | 4,474,069.98 |
| Accrued expenses | 1,436,527,854.64 | 344,781,414.90 | 1,379,497,142.55 | 331,107,609.67 |
| Accrued salary | 66,894,774.32 | 16,108,161.05 | 60,023,338.88 | 14,699,395.04 |
| Estimated liabilities | 6,590,495.50 | 988,574.33 | 7,258,295.50 | 1,088,744.33 |
| Share-based payment | 108,762,181.29 | 24,931,686.43 | 107,454,470.04 | 24,615,719.01 |
| Expected returns | 8,071,056.53 | 1,879,760.58 | 10,173,886.95 | 2,449,174.32 |
| Lease obligation | 205,262,031.17 | 48,713,356.68 | 224,849,380.79 | 53,129,092.96 |
| Total | 2,055,904,826.87 | 487,194,916.55 | 1,999,083,638.82 | 474,260,829.71 |
(2) Un-offset deferred income tax liabilities
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Right-of-use assets | 202,864,225.37 | 48,121,254.03 | 223,503,573.14 | 52,776,659.15 |
| Depreciation of fixed assets | 8,167,774.46 | 1,225,166.17 | 8,198,493.05 | 1,231,924.26 |
| Total | 211,031,999.83 | 49,346,420.20 | 231,702,066.19 | 54,008,583.41 |
(3) Deferred income tax assets or liabilities presented with net amount after offsetting
Unit: RMB
| Item | Offsetting amount between deferred income tax assets and liabilities at the end of the period | Closing balance of deferred income tax assets or liabilities after offsetting | Offsetting amount between deferred income tax assets and liabilities at the beginning of the period | Opening balance of deferred income tax assets or liabilities after offsetting |
| Deferred income tax assets | 49,346,420.20 | 437,848,496.35 | 54,008,583.41 | 420,252,246.30 |
| Deferred income tax liabilities | 49,346,420.20 | 54,008,583.41 |
(4) Detail about unrecognized deferred income tax assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 16,491,151.40 | 16,278,431.89 |
| Deductible losses | 58,800,758.49 | 56,282,437.20 |
| Total | 75,291,909.89 | 72,560,869.09 |
(5) Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
| Year | Closing amount | Opening balance | Remarks |
| 2024 | 8,287,689.09 | 8,287,689.09 |
| 2025 | 6,945,189.33 | 6,945,189.33 | |
| 2026 | 7,751,051.17 | 7,751,051.17 | |
| 2027 | 5,232,792.23 | 5,232,792.23 | |
| 2028 | 28,065,715.38 | 28,065,715.38 | |
| 2029 | 2,518,321.29 | ||
| Total | 58,800,758.49 | 56,282,437.20 |
18. Assets with title or use right restrictions
Unit: RMB
| Item | End of this reporting period | Beginning of this reporting period | ||||||
| Book balance | Book value | Restricted type | Restricted situation | Book balance | Book value | Restricted type | Restricted situation | |
| Monetary capital | 214,338,000.00 | 214,338,000.00 | Freezing | Bank acceptance bill security | 476,860,000.00 | 476,860,000.00 | Freezing | Bank acceptance bill security |
| Monetary capital | 58,000,000.00 | 58,000,000.00 | Freezing | Deposit security for advance payment financing | 58,000,000.00 | 58,000,000.00 | Freezing | Deposit security for advance payment financing |
| Monetary capital | 929,102.94 | 929,102.94 | Freezing | Security and frozen funds of e-commerce platforms | 613,739.88 | 613,739.88 | Freezing | Security and frozen funds of e-commerce platforms |
| Monetary capital | 30,423.72 | 30,423.72 | Freezing | Write off the frozen amount in the bank account of the branch | ||||
| Total | 273,267,102.94 | 273,267,102.94 | 535,504,163.60 | 535,504,163.60 | ||||
19. Short-term loans
(1) Classification of short-term loans
Unit: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance draft discount | 199,065,687.57 | 199,741,167.36 |
| Total | 199,065,687.57 | 199,741,167.36 |
Description for classification of short-term borrowings:
There are no overdue and unpaid loans at the end of the period.
20. Notes payable
Unit: RMB
| Type | Closing balance | Opening balance |
| Bank acceptance bill | 1,415,650,000.00 | 1,235,000,000.00 |
| Total | 1,415,650,000.00 | 1,235,000,000.00 |
The amount of due unpaid notes payable is RMB 0.00 at the end of the current period.
The above balance is the notes payable due within a year.
21. Accounts payable
(1) Details
Unit: RMB
| Item | Closing balance | Opening balance |
| Goods payment | 1,703,439,387.50 | 1,757,840,901.20 |
| Equipment and engineering funds | 39,194,385.14 | 57,759,242.79 |
| Expenses payment | 1,512,169,301.24 | 1,390,007,709.19 |
| Total | 3,254,803,073.88 | 3,205,607,853.18 |
Other remarks:
As at June 30, 2024, Supor had no significant accounts payable with an age of more than one year (December 31, 2023: None).
22. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other payables | 131,222,347.65 | 147,617,550.27 |
| Total | 131,222,347.65 | 147,617,550.27 |
(1) Other payables
1) Listing by nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Deposit as security | 101,008,911.15 | 103,302,075.21 |
| Temporary receipts payable | 10,181,764.26 | 21,367,823.48 |
| Others | 20,031,672.24 | 22,947,651.58 |
| Total | 131,222,347.65 | 147,617,550.27 |
23. Contract liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances on sales | 219,210,138.94 | 862,706,076.18 |
| Total | 219,210,138.94 | 862,706,076.18 |
The amount with major changes in its book value during the reporting period and its reasons
Unit: RMB
| Item | Variation amount | Variation reason |
| Advances on sales | -862,706,076.18 | Including the revenue recognized by the amount of book value of contract liabilities at the beginning of the year |
| Advances on sales | 219,210,138.94 | The amount increased due to receipt of cash (excluding the amount recognized as revenue in the current year) |
| Total | -643,495,937.24 |
24. Employee remunerations payable
(1) Details
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| I. Short-term Employee Remuneration | 320,212,390.06 | 894,703,061.80 | 966,671,800.66 | 248,243,651.20 |
| II. Post-employment benefits - defined contribution plan | 10,195,224.02 | 56,147,452.08 | 58,149,972.38 | 8,192,703.72 |
| III. Termination Benefit | 1,731,091.20 | 139,690.51 | 1,089,476.41 | 781,305.30 |
| Total | 332,138,705.28 | 950,990,204.39 | 1,025,911,249.45 | 257,217,660.22 |
(2) Details of short-term employee remuneration
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Salary, bonus, allowance and subsidy | 271,284,222.43 | 793,696,638.74 | 866,353,400.51 | 198,627,460.66 |
| 2. Employee services and benefits | 4,179,266.16 | 35,841,246.83 | 37,238,051.03 | 2,782,461.96 |
| 3. Social insurance charges | 6,741,348.08 | 27,801,537.80 | 29,665,310.50 | 4,877,575.38 |
| Including: Medical insurance premium | 6,331,939.24 | 24,921,089.63 | 26,837,124.90 | 4,415,903.97 |
| Occupational injuries premium | 409,408.84 | 2,880,448.17 | 2,828,185.60 | 461,671.41 |
| 4. Housing accumulation fund | 104,145.00 | 23,772,555.46 | 23,702,341.46 | 174,359.00 |
| 5. Trade union fund and employee education fund | 37,903,408.39 | 13,591,082.97 | 9,712,697.16 | 41,781,794.20 |
| Total | 320,212,390.06 | 894,703,061.80 | 966,671,800.66 | 248,243,651.20 |
(3) Details of defined contribution plan
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic endowment insurance | 9,844,178.96 | 54,348,902.16 | 56,268,806.00 | 7,924,275.12 |
| 2. Unemployment insurance premium | 351,045.06 | 1,798,549.92 | 1,881,166.38 | 268,428.60 |
| Total | 10,195,224.02 | 56,147,452.08 | 58,149,972.38 | 8,192,703.72 |
25. Taxes payable
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT | 18,419,481.97 | 37,895,819.95 |
| Enterprise income tax | 135,091,794.72 | 266,724,688.22 |
| Individual income tax | 3,073,721.13 | 3,461,145.87 |
| Urban maintenance and construction tax | 6,255,890.81 | 9,463,195.64 |
| Housing property tax | 5,683,964.52 | 10,999,275.32 |
| Land use tax | 3,477,015.85 | 6,702,356.51 |
| Stamp tax | 4,098,420.05 | 4,433,184.32 |
| Education surcharge | 2,721,861.95 | 4,057,809.94 |
| Local education surcharge | 1,854,650.15 | 2,725,257.74 |
| Total | 180,676,801.15 | 346,462,733.51 |
26. Non-current liabilities due within one year
Unit: RMB
| Item | Closing balance | Opening balance |
| Lease obligations due within one year | 48,284,181.59 | 47,568,255.43 |
| Total | 48,284,181.59 | 47,568,255.43 |
27. Other current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Refund payable | 20,660,346.49 | 25,459,245.72 |
| Endorsed bank acceptance bill unrecognized | 11,404,422.19 | 10,761,655.33 |
| Output tax to be written-off | 27,386,925.64 | 111,431,313.35 |
| Total | 59,451,694.32 | 147,652,214.40 |
28. Lease obligation
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term lease obligations | 205,262,031.17 | 224,849,380.79 |
| Minus: Lease obligations due within one year | -48,284,181.59 | -47,568,255.43 |
| Total | 156,977,849.58 | 177,281,125.36 |
Other remarks:
Supor also rents employee dormitories, temporary warehouses, etc. for a lease term up to one year, representing short-term leases.Supor had chosen not to recognize the right-of-use assets and lease obligations for these leases.
29. Long-term employee remunerations payable
(1) Details
Unit: RMB
| Item | Closing balance | Opening balance |
| Termination benefit | 989,053.39 | 1,128,743.89 |
| Other long-term welfare | 30,431,039.27 | 14,707,829.27 |
| Total | 31,420,092.66 | 15,836,573.16 |
30. Estimated liabilities
Unit: RMB
| Item | Closing balance | Opening balance | Reasons for the balance |
| Pending lawsuit | 5,538,727.50 | 5,538,727.50 | For details, please refer to Note XVI. "Commitments and Contingencies" |
| Financial guarantee contract | 1,051,768.00 | 1,719,568.00 | For details, please refer to Note XVI. "Commitments and Contingencies" |
| Total | 6,590,495.50 | 7,258,295.50 |
31. Share capital
Unit: RMB
| Opening balance | Increase/decrease in the period (+, -) | Closing balance | |||||
| New shares | Shares bonus | Converted capital | Others | Subtotal | |||
| Total shares | 806,708,657.00 | -5,150,000.00 | -5,150,000.00 | 801,558,657.00 | |||
Other remarks:
The share capital decreased by RMB 5,150,000.00 during this period, due to the cancellation of 5,150,000 shares held in theCompany’s special stock repurchase account to reduce registered capital as authorized by the Annual General Meeting ofShareholders for 2022 Fiscal Year on April 30, 2024. Following the completion of cancellation, the Company's total capital stockwas reduced from 806,708,657 shares to 801,558,657 shares.
32. Capital reserve
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Other capital reserve | 173,110,627.02 | 6,713,320.04 | 179,823,947.06 | |
| Total | 173,110,627.02 | 6,713,320.04 | 179,823,947.06 |
Other remarks (including increase and decrease in current period and variation reason):
The increase of RMB 6,713,320.04 in other capital reserves in the current period refers to ① the equity-settled share-basedpayment amount of RMB 7,273,890.00 in the current period included in the capital reserve (other capital reserves), as detailed inNote XV. "Description of Share-based Payment" to these financial statements. ② The estimated deductible amount of the share-based payment in the future of this year exceeds the cost recognized in the waiting period. The deferred income tax assets formedby the excess of RMB -560,569.96 are directly included into the capital reserve - other capital reserves.
33. Treasury shares
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Treasury share | 488,057,333.76 | 252,904,503.51 | 235,152,830.25 | |
| Total | 488,057,333.76 | 252,904,503.51 | 235,152,830.25 |
Other remarks (including increase and decrease in current period and variation reason):
1) The 6
thSession of the Eighth Board of Director reviewed and adopted Proposal on Unlocking of Restricted Stock within theFirst Unlock Period of 2021 Restricted Stock Incentive Plan, agreeing to unlock the Restricted Stock for 270 qualified IncentiveEmployees in the first unlock period. The number of Restricted Stock unlocked is 555,750 shares. The corresponding repurchaseobligation of RMB 1 per share has disappeared, leading to a decrease in treasury shares of RMB 555,750 during this period.
2) The 19
thSession of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2022 Fiscal Yearreviewed and adopted the Proposal on Public Shares Repurchase Plan. In accordance with the authorization by the Annual GeneralMeeting of Shareholders for 2022 Fiscal Year, a total of 5,150,000 shares held in the special securities account for repurchaseswere cancelled, resulting in a reduction of registered capital by RMB 252,348,753.51.
34. Other comprehensive incomes
Unit: RMB
| Item | Opening balance | Amount incurred during this period | Closing balance | |||||
| Current period cumulative before income tax | Minus: Other comprehensive incomes carried forward transferred to profits and losses | Minus: Other comprehensive incomes carried forward transferred to retained earnings | Minus: Income tax expenses | Attributable to parent company | Attributable to minority shareholder | |||
| II. Other comprehensive incomes to be reclassified into the profit and loss | -19,176,454.59 | -11,517,433.32 | -11,161,336.71 | -356,096.61 | -30,337,791.30 | |||
| Conversion difference in foreign currency financial statement | -19,176,454.59 | -11,517,433.32 | -11,161,336.71 | -356,096.61 | -30,337,791.30 | |||
| Total other comprehensive income | -19,176,454.59 | -11,517,433.32 | -11,161,336.71 | -356,096.61 | -30,337,791.30 | |||
35. Surplus reserve
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserve | 355,939,901.82 | 7,129,762.06 | 247,198,753.51 | 115,870,910.37 |
| Total | 355,939,901.82 | 7,129,762.06 | 247,198,753.51 | 115,870,910.37 |
Remarks on surplus reserve (including increase and decrease in current period and variation reason):
During this period, the increase in surplus reserve by RMB 7,129,762.06 is the statutory surplus reserve allocated based on 10% ofthe net profit realized by the parent company. The decrease in this period is due to the cancellation of 5,150,000 repurchasedshares by the Company. The difference between the payment made for the repurchased shares and their face value are used tooffset the capital reserve - share capital premium, and the insufficient portion is offset against the surplus reserve by RMB247,198,753.51.
36. Undistributed profits
Unit: RMB
| Item | Current period | Preceding period |
| Undistributed profits at the end of last period before adjustment | 5,516,807,622.62 | 5,865,316,233.53 |
| Undistributed profits at period beginning after adjustment | 5,516,807,622.62 | 5,865,316,233.53 |
| Plus: Net profit attributable to owners of the parent company | 940,593,117.65 | 880,618,279.78 |
| Minus: withdrawal of statutory surplus reserve | 7,129,762.06 | 11,295,563.32 |
| Common share dividends payable | 2,175,512,858.61 | 2,439,504,228.21 |
| Grant of restricted stocks | 3,650,590.00 | |
| Undistributed profits at the end of the period | 4,274,758,119.60 | 4,291,484,131.78 |
Adjustment of undistributed profits at period beginning:
1). Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations, undistributedprofit at period beginning was changed by RMB 0.
2). Due to change of accounting policies, undistributed profit at period beginning was changed by RMB 0.
3). Due to rectification of important accounting errors, undistributed profit at period beginning was changed by RMB 0.
4). Due to change of merger scope resulted from same control, undistributed profit at period beginning was changed by RMB 0.
5). Due to other adjustment, undistributed profit at period beginning was changed by RMB 0.
37. Operating incomes and costs
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 10,833,678,971.47 | 8,176,313,231.14 | 9,872,392,009.04 | 7,352,664,336.65 |
| Revenue from other operations | 131,098,996.98 | 113,197,742.93 | 110,224,431.69 | 92,164,920.06 |
| Total | 10,964,777,968.45 | 8,289,510,974.07 | 9,982,616,440.73 | 7,444,829,256.71 |
Breakdown information of operating income and operating cost:
Unit: RMB
| Contract classification | Total | |
| Operating income | Operating cost | |
| Business type | ||
| Including: | ||
| Cookware | 2,942,755,534.25 | 2,148,540,624.99 |
| Electric appliance | 7,874,467,595.73 | 6,016,365,660.90 |
| Others | 147,554,838.47 | 124,604,688.18 |
| Classified by business area | ||
| Including: | ||
| Domestic | 7,509,322,088.47 | 5,404,596,263.65 |
| Foreign | 3,455,455,879.98 | 2,884,914,710.42 |
Information related to performance obligations:
NoneInformation related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed buthave not been performed or not yet completed is RMB 219,210,138.94, of which RMB 219,210,138.94 is expected to berecognized as revenue in 2024.
38. Taxes and surcharges
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Urban maintenance and construction tax | 25,870,892.88 | 28,302,388.21 |
| Education surcharge | 11,288,326.73 | 12,198,871.58 |
| Housing property tax | 6,149,515.92 | 6,001,349.28 |
| Land use tax | 3,728,691.00 | -1,095,848.57 |
| Vehicle and vessel use tax | 24,100.31 | 24,666.40 |
| Stamp tax | 8,255,533.64 | 7,496,718.40 |
| Local education surcharge | 7,524,662.67 | 8,132,580.98 |
| Environmental protection tax | 31,738.92 | 24,982.96 |
| Total | 62,873,462.07 | 61,085,709.24 |
Other remarks:
See Note VI. "Taxes" for calculating standard of taxes and surcharges.
39. Administrative expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Employee remuneration | 117,480,975.61 | 116,970,686.38 |
| Office, business traveling and depreciation and amortization expenses | 43,702,192.80 | 38,412,018.68 |
| Equity incentive and performance incentive fund cost | 13,690,850.13 | 16,286,046.00 |
| Others | 19,542,874.84 | 17,364,037.34 |
| Total | 194,416,893.38 | 189,032,788.40 |
40. Sales expense
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Advertising, sales promotion, and special gift expenses | 876,514,225.41 | 804,802,932.70 |
| Employee remuneration | 169,866,835.19 | 186,421,466.63 |
| Office and business traveling expenses | 59,870,086.82 | 69,697,274.57 |
| Equity incentive and performance incentive fund cost | 4,283,291.97 | 5,069,142.00 |
| Others | 28,377,220.74 | 32,409,818.84 |
| Total | 1,138,911,660.13 | 1,098,400,634.74 |
41. R&D expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Employee remuneration | 115,380,914.95 | 98,660,270.10 |
| Trial production experiment cost and consumption expenditure | 29,631,031.59 | 16,372,788.48 |
| New product design cost | 20,891,202.96 | 21,374,954.51 |
| Patent and external institutional fees | 21,218,726.86 | 22,692,517.92 |
| Equity incentive and performance incentive fund cost | 4,020,047.53 | 3,635,390.00 |
| Others | 13,362,786.32 | 11,647,881.41 |
| Total | 204,504,710.21 | 174,383,802.42 |
42. Financial expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Interest expense of loans and accounts payable | 2,062,528.25 | 1,741,376.23 |
| Interest revenue of deposits and receivables | -53,980,532.58 | -49,382,432.80 |
| Interest expense of lease obligations | 5,334,886.69 | 5,459,272.66 |
| Gain on net foreign exchange | -12,870,900.39 | -2,424,046.37 |
| Handling fee and other financial expenses | 1,989,034.73 | 2,354,288.69 |
| Total | -57,464,983.30 | -42,251,541.59 |
43. Other incomes
(1) Classification of other income
Unit: RMB
| Source of other revenues | Amount incurred during this period | Amount incurred during prior period |
| Government subsidies concerning daily activities | 36,756,610.66 | 29,022,563.56 |
| Refund of handling fee for withholding individual income tax | 1,065,897.13 | 1,188,758.28 |
| VAT tax plus deduction | 2,347,150.52 | |
| Total | 40,169,658.31 | 30,211,321.84 |
(2) Government subsidies concerning daily activities
Unit: RMB
| Subsidy item | Amount incurred during this period | Amount incurred during prior period | Related to assets/income |
| Project subsidy | 2,428,630.24 | 1,729,084.60 | Related to benefits |
| Government reward | 2,894,000.00 | Related to benefits |
Tax returns
| Tax returns | 34,327,980.42 | 24,399,478.96 | Related to benefits |
| Total | 36,756,610.66 | 29,022,563.56 |
44. Gains from changes in fair value
Unit: RMB
| Resource for gains from changes in fair value | Amount incurred during this period | Amount incurred during prior period |
| Transactional financial assets | 164,631.01 | 129,103.13 |
| Total | 164,631.01 | 129,103.13 |
45. Investment income
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Income from long-term equity investments under the equity method | -705,587.15 | -460,529.47 |
| Investment income from disposal of transactional financial assets | 2,696,040.43 | 7,170,581.56 |
| Investment income from the disposal of other debt investments | 4,108,333.76 | |
| Interest from term deposit | 5,852,397.27 | |
| Investment income of debt investment during the holding period | 10,237,780.82 | 18,450,770.17 |
| Total | 16,336,567.86 | 31,013,219.53 |
46. Credit impairment loss
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Bad debt losses for accounts receivable | -16,636,225.12 | -12,624,888.07 |
| Loss for bad debts of other receivables | -526,107.52 | -504,792.54 |
| Financial guarantee contract | 667,800.00 | 94,073.72 |
| Total | -16,494,532.64 | -13,035,606.89 |
47. Asset impairment loss
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| I. Loss on inventory depreciation and impairment loss of contract performance cost | -933,627.88 | -5,771,681.15 |
| Total | -933,627.88 | -5,771,681.15 |
48. Assets disposal income
Unit: RMB
| Source of assets disposal income | Amount incurred during this period | Amount incurred during prior period |
| Gains from disposal of fixed assets | -1,406,833.43 | -1,528,389.30 |
| Proceeds from the disposal of the right-of-use assets | 86,175.43 | 530,406.83 |
| Total | -1,320,658.00 | -997,982.47 |
49. Non-operating incomes
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period | Amount included into non-recurring profit or loss of the current period |
| Damage and scrapping gains of non-current assets | 139,478.40 | 157,741.35 | 139,478.40 |
| Including: Gains from scrap of fixed assets | 139,478.40 | 157,741.35 | 139,478.40 |
| Default fine revenue | 1,679,748.01 | 939,310.46 | 1,679,748.01 |
| Others | 1,871,691.76 | 592,034.76 | 1,871,691.76 |
| Total | 3,690,918.17 | 1,689,086.57 | 3,690,918.17 |
50. Non-operating expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period | Amount included into non-recurring profit or loss of the current period |
| Donation expenditures | 1,391,041.79 | 1,162,779.05 | 1,391,041.79 |
| Damage and scrapping losses of non-current assets | 223,820.63 | 765,667.84 | 223,820.63 |
| Including: Losses from scrapping of fixed assets | 223,820.63 | 765,667.84 | 223,820.63 |
| Others | 793,963.53 | 315,030.27 | 793,963.53 |
| Total | 2,408,825.95 | 2,243,477.16 | 2,408,825.95 |
51. Income tax expenses
(1) Details
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Current period income tax expenses | 249,217,844.53 | 203,086,520.76 |
| Deferred income tax expenses | -18,156,820.01 | 15,809,478.09 |
| Total | 231,061,024.52 | 218,895,998.85 |
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
| Item | Amount incurred during this period |
| Total profit | 1,171,229,382.77 |
| Income tax expenses based on statutory/applicable tax rate | 292,807,345.69 |
| Effect of different tax rate applicable to subsidiaries | -66,743,529.82 |
| Effect of prior income tax reconciliation | 4,864,785.79 |
| Effect of non-deductible costs, expenses and losses | 992,704.63 |
| Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax assets in the current period | -860,281.77 |
| Income tax expenses | 231,061,024.52 |
52. Other comprehensive incomes
See Note. 34 for details.
53. Cash flow statement items
(1) Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Receipt of government subsidies | 5,841,677.89 | 4,623,084.60 |
| Receipt of deposit, security and staff reserve fund loan | 12,159,144.85 | 9,037,333.60 |
| Interest revenues | 31,920,212.62 | 21,191,658.08 |
| Others | 12,573,176.34 | 22,693,410.19 |
| Total | 62,494,211.70 | 57,545,486.47 |
Other cash payments related to operating activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Cash payment for sales expense | 1,109,432,018.32 | 984,966,555.13 |
| Cash payment for administrative expenses | 88,904,349.57 | 70,192,567.60 |
| Cash payment for R&D expenses | 102,761,552.11 | 74,575,724.73 |
| Donations payment | 814,455.04 | 694,727.20 |
| Other payments | 2,969,194.20 | 1,784,876.82 |
| Total | 1,304,881,569.24 | 1,132,214,451.48 |
(2) Cash related to investing activities
Other cash receipts related to investing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Recovery of financial products, and principal of term deposit | 2,200,000,000.00 | 2,647,094,578.70 |
| Total | 2,200,000,000.00 | 2,647,094,578.70 |
Other cash payments related to investing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Cash payment for financial products and term deposit | 260,000,000.00 | 1,540,000,000.00 |
| Total | 260,000,000.00 | 1,540,000,000.00 |
(3) Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Receiving payment for equity incentive | 79,000.00 | |
| Total | 79,000.00 |
Other cash payments related to financing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Repurchase of shares and handling fees | 230,205,750.50 | |
| Cash paid for repayment of lease obligation principal and interest | 23,393,284.53 | 32,865,808.90 |
| Total | 23,393,284.53 | 263,071,559.40 |
Changes in liabilities arising from financing activities? Applicable □ Not-applicable
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance | ||
| Cash changes | Non-cash changes | Cash changes | Non-cash changes | |||
| Short-term borrowings | 199,741,167.36 | 198,257,000.00 | 1,067,520.21 | 200,000,000.00 | 199,065,687.57 | |
| Capital inter-bank lending of related parties | 15,611,335.16 | 168,404.06 | 15,779,739.22 | |||
| Other payables-restricted stock repurchase obligations | 2,442,250.00 | 555,750.00 | 1,886,500.00 | |||
| Other payables - payable dividend | 2,175,512,858.61 | 2,175,512,858.61 | ||||
| Lease obligation | 224,849,380.79 | 3,805,934.91 | 23,393,284.53 | 205,262,031.17 | ||
| Total | 442,644,133.31 | 198,425,404.06 | 2,180,386,313.73 | 2,398,906,143.14 | 555,750.00 | 421,993,957.96 |
54. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
| Supplement information | Amount in the current period | Amount of last period |
| 1. Reconciliation of net profit to cash flow from operating activities: | ||
| Net profit | 940,168,358.25 | 879,233,775.36 |
| Plus: Impairment provision of assets | 933,627.88 | 5,771,681.15 |
| Credit impairment loss | 16,494,532.64 | 13,035,606.89 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 65,149,389.29 | 66,601,089.78 |
| Depreciation of right-of-use assets | 24,535,799.45 | 18,001,711.63 |
| Amortization of intangible assets | 13,703,335.95 | 13,197,324.41 |
| Amortization of long-term unamortized expenses | ||
| Loss on disposal of fixed assets, intangible assets and other long-term assets ("-" for gains) | 1,320,658.00 | 997,982.47 |
| Fixed assets retirement loss ("-" for gains) | 84,342.23 | 607,926.49 |
| Losses from changes in fair value ("-" for revenue) | -164,631.01 | -129,103.13 |
| Financial expenses ("-" for gains) | -12,870,900.39 | -2,424,046.38 |
| Investments losses ("-" for gains) | -16,336,567.86 | -31,013,219.53 |
| Decrease of deferred income tax assets ("-" for increase) | -17,596,250.05 | 15,026,101.96 |
| Increase of deferred income tax liabilities ("-" for decrease) | ||
| Decrease in inventories ("-" for increase) | 270,990,776.88 | 554,366,591.39 |
| Decrease in operating receivables ("-" for increase) | -273,026,536.21 | -214,465,453.45 |
| Increase in operating payables ("-" for decrease) | -471,574,790.28 | -789,944,755.92 |
| Others | 6,713,320.04 | 26,177,298.00 |
| Net cash flows from operating activities | 548,524,464.81 | 555,040,511.12 |
| 2. Significant investing and financing activities not related to cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible bonds to be matured within one year | ||
| Fixed assets under financing lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Cash at the end of the period | 1,668,571,692.93 | 1,344,219,071.30 |
| Minus: Cash at the beginning of the period | 1,405,752,936.36 | 2,395,932,752.38 |
| Plus: Cash equivalents at the end of the period | ||
| Minus: Cash equivalents at the beginning of the period | ||
| Net increase in cash and cash equivalents | 262,818,756.57 | -1,051,713,681.08 |
(2) Cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 1,668,571,692.93 | 1,405,752,936.36 |
| Including: Cash on hand | 61,768.13 | 62,594.14 |
| Cash in bank on demand for payment | 1,627,304,647.96 | 1,357,366,603.33 |
| Other monetary capitals on demand for payment | 41,205,276.84 | 48,323,738.89 |
| III. Balance of Cash and Cash Equivalents at the End of the Period | 1,668,571,692.93 | 1,405,752,936.36 |
(3) Monetary capitals that do not belong to cash and cash equivalents
Unit: RMB
| Item | Amount in the current period | Amount of last period | Reasons for not being classified as cash and cash equivalents |
| Term deposit over three months | 52,256,164.38 | 50,789,657.53 | Restricted liquidity |
| Deposit security for advance payment financing | 58,000,000.00 | 58,000,000.00 | Restricted use right |
| Bank acceptance bill security | 214,338,000.00 | 405,723,750.00 | Restricted use right |
| Security and frozen funds of e-commerce platforms | 929,102.94 | 948,609.32 | Restricted use right |
| Total | 325,523,267.32 | 515,462,016.85 |
55. Foreign currency monetary item
(1) Foreign currency monetary item
Unit: RMB
| Item | Closing balance in foreign currencies | Conversion rate | RMB equivalent |
| Monetary capital | |||
| Including: USD | 51,187,691.24 | 7.1268 | 364,804,437.93 |
| EUR | 22,288.01 | 7.6617 | 170,764.05 |
| GBP | 0.68 | 9.0430 | 6.15 |
| VND | 27,377,321,794.20 | 0.00028099 | 7,692,753.65 |
| SGD | 753,739.71 | 5.2790 | 3,978,991.93 |
| IDR | 26,375,672,521.52 | 0.000444 | 11,710,798.60 |
| Accounts receivable | |||
| Including: USD | 35,277,091.87 | 7.1268 | 251,412,778.34 |
| VND | 18,669,109,018.50 | 0.00028099 | 5,245,832.94 |
| IDR | 4,421,868,703.00 | 0.000444 | 1,963,309.70 |
| Accounts payable | |||
| Including: USD | 1,944,368.74 | 7.1268 | 13,857,127.14 |
| HKD | 7,690.80 | 0.91268 | 7,019.24 |
| EUR | 4,010.83 | 7.6617 | 30,729.78 |
| VND | 85,351,635,849.76 | 0.00028099 | 23,982,956.16 |
| SGD | 19,708.00 | 5.2790 | 104,038.53 |
| IDR | 5,012,245,133.04 | 0.000444 | 2,225,436.84 |
(2) Description of overseas business entities, including important overseas business entities, shall disclosetheir principal overseas place of business, the recording currency and the basis for selection, and shallalso disclose the reasons for changes in the recording currency.
□ Applicable ? Not-applicable
56. Lease
(1) The Company acts as the leasee
? Applicable □ Not-applicableVariable lease payments not recognized through the measurement of lease obligation
□ Applicable ? Not-applicable
Simplified handling of short-term leasing or leasing costs for low value assets? Applicable □ Not-applicable
Unit: RMB
| Item | 2024 | 2023 |
| Costs of short-term leases with simplified treatment method selected | 5,515,580.94 | 3,992,021.50 |
| Lease-related total cash outflow | 28,908,865.47 | 36,857,830.40 |
(2) The Company acts as the leaser
Operating lease as lessor? Applicable □ Not-applicable
Unit: RMB
| Item | Lease revenue | Including: Revenue related to variable lease payments not through lease receipts |
| Buildings and structures | 285,085.68 | |
| Total | 285,085.68 |
Financing lease as lessor
□ Applicable ? Not-applicable
Annual undiscounted lease receipts for the next five years
□ Applicable ? Not-applicable
(3) Recognition of the profit and loss of financing lease sales as a manufacturer or distributor
□ Applicable ? Not-applicable
VIII. R&D Expenditure
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Employee remuneration | 115,380,914.95 | 98,660,270.10 |
| Trial production experiment cost and consumption expenditure | 29,631,031.59 | 16,372,788.48 |
| New product design cost | 20,891,202.96 | 21,374,954.51 |
| Patent and external institutional fees | 21,218,726.86 | 22,692,517.92 |
| Equity incentive and performance incentive fund cost | 4,020,047.53 | 3,635,390.00 |
| Others | 13,362,786.32 | 11,647,881.41 |
| Total | 204,504,710.21 | 174,383,802.42 |
| Including: Expensed R&D expenditure | 204,504,710.21 | 174,383,802.42 |
| Capitalized R&D expenditure |
IX. Change on merger scope
1. Others
During the current period, the Company has not changed the merger scope.
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise group
Unit: RMB
| Subsidiary name | Registered capital | Main operating place | Place of registration | Business nature | Shareholding ratio | Acquisition method | |
| Direct | Indirect | ||||||
| Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd. | 133,697,100.00 | Hangzhou | Hangzhou | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. | 610,000,000.00 | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |
| Supor (Vietnam) Co., Ltd. | 104,934,081.16 | Vietnam | Vietnam | Manufacturing industry | 100.00% | Establishment | |
| Wuhan Supor Recycling Co., Ltd. | 1,000,000.00 | Wuhan | Wuhan | Commerce | 100.00% | Establishment | |
| Wuhan Supor Cookware Co., Ltd. [Note 1] | 91,160,000.00 | Wuhan | Wuhan | Manufacturing industry | 25.00% | 75.00% | Establishment |
| Hangzhou Omegna Commercial Trade Co., Ltd. | 10,000,000.00 | Hangzhou | Hangzhou | Commerce | 100.00% | Establishment | |
| Shanghai Supor Cookware Marketing Co., Ltd. | 5,000,000.00 | Shanghai | Shanghai | Commerce | 100.00% | Establishment | |
| Wuhan Supor Pressure Cooker Co., Ltd. | 224,039,000.00 | Wuhan | Wuhan | Manufacturing industry | 100.00% | Enterprise merger under the same control | |
| Zhejiang Supor Plastic & Rubber Co., Ltd. | 8,044,670.77 | Yuhuan | Yuhuan | Manufacturing industry | 100.00% | Enterprise merger under the same control | |
| Yuhuan Supor Cookware Marketing Co., Ltd. | 8,000,000.00 | Yuhuan | Yuhuan | Commerce | 100.00% | Enterprise merger not under the same control | |
| SEADA | 23,314,945.98 | Singapore | Singapore | Commerce | 51.00% | Enterprise merger under the same control | |
| AFS Vietnam Management Co.,Ltd. [Note 2] | 2,453,486.50 | Vietnam | Vietnam | Commerce | 100.00% | Enterprise merger under the same control | |
| Shanghai WMF Enterprise Development Co., Ltd. | 50,000,000.00 | Shanghai | Shanghai | Commerce | 100.00% | Establishment | |
| Zhejiang WMF Housewares Co., Ltd. | 100,000,000.00 | Yuhuan | Yuhuan | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | 50,000,000.00 | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang Supor Large Kitchen Appliance Co., Ltd. | 100,000,000.00 | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |
| PT GROUPE SEB INDONESIA MSD [Note 3] | 32,714,774.74 | Indonesia | Indonesia | Commerce | 66.67% | Establishment | |
| Zhejiang Supor Water Heater Co., Ltd. [Note 4] | 100,000,000.00 | Shaoxing | Shaoxing | Manufacturing industry | 52.00% | Establishment | |
| Hainan Supor E-commerce Co., Ltd. [Note 5] | 8,000,000.00 | Hainan | Hainan | Commerce | 100.00% | Establishment | |
| Hainan Tefal Trade Co., Ltd. [Note 5] | 10,000,000.00 | Hainan | Hainan | Commerce | 100.00% | Establishment |
Explanation on shareholding ratio in subsidiary different from voting ratio:
Note 1: This Company is a subsidiary of Wuhan Supor Pressure Cooker Co., Ltd.; of which, Wuhan Supor Pressure Cooker Co.,Ltd. holds 75% shares and the Company holds 25% shares.Note 2: The Company holds 51% equity of SEADA, and SEB INTERNATIONALE S.A.S holds 49% equity of the Company;AFS is a subsidiary totally held by SEADA.Note 3: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA, a subsidiary of the Company and PTMULTIFORTUNA in Indonesia. SEADA holds 66.67% shares and PT MULTIFORTUNA holds 33.33% shares.Note 4: Zhejiang Supor Water Heater Co., Ltd. is jointly invested and established by the Company and Supor Group Co., Ltd. TheCompany holds 52% of the shares, and Supor Group Co., Ltd. holds 48% of the shares.Note 5: Hainan Supor E-commerce Company and Hainan Tefal Trade Company are wholly owned subsidiaries of Zhejiang SuporElectrical.
2. Equity in joint venture or associated enterprises
(1) Financial information summary of unimportant joint ventures and associated enterprises
Unit: RMB
| Closing balance/amount incurred during this period | Opening balance/Amount incurred during prior period | |
| Associated enterprise: | ||
| Total investment book values | 60,958,242.27 | 61,763,872.57 |
| Total amounts of the following items calculated according to the shareholding ratio | ||
| - Net profit | -720,742.08 | -432,266.96 |
| - Total Comprehensive Incomes | -720,742.08 | -432,266.96 |
XI. Government subsidies
1. Government subsidies recognized as per receivable at the end of reporting period
□ Applicable ? Not-applicable
Reasons for not receiving the expected amount of government subsidies at the expected time point
□ Applicable ? Not-applicable
2. Liabilities projects involving government subsidies
□ Applicable ? Not-applicable
3. Government subsidies included into the current profits and losses
? Applicable □ Not-applicable
Unit: RMB
| Accounting item | Amount incurred during this period | Amount incurred during prior period |
| Other incomes | 36,756,610.66 | 29,022,563.56 |
VII. Risks related to financial instruments
1. All kinds of risks generated by financial instruments
(I) Risk management objectives and policies
Supor aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to minimizethe adverse effects of risks on Supor's financial performance. Based on such objectives, Supor's risk management policies areestablished to identify and analyze the risks faced by Supor, to set appropriate risk limits and controls, and to monitor risks andadherence to limits.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cashflows due to changes in exchange rate. Supor's foreign currency risk relates mainly to foreign currency monetary assets andliabilities of Supor. When short-term imbalance occurred to foreign currency assets and liabilities, Supor may conduct foreignexchange hedge or trade foreign currency at market exchange rate when necessary, in order to maintain the net risk exposurewithin an acceptable level.
Please refer to Note VII. 55Foreign currency monetary items for details in foreign currency financial assets and liabilities at theend of the year of Supor.Sensitivity analysis:
Assuming that other risk variables other than the exchange rate remain unchanged, the increase in shareholders' equities and netprofits due to the 1% appreciation of RMB due to the change in exchange rate of RMB against all foreign currencies as at June 30of Supor will be as follows. This influence is translated into RMB at the spot rate on the balance sheet date.
| Shareholders' equities | Net profit | |
| June 30, 2024 | ? | ? |
| USD | 3,523,455.45 | 3,523,455.45 |
| EUR | 1,075.41 | 1,075.41 |
| GBP | 0.05 | 0.05 |
| HKD | -59.66 | -59.66 |
| VND | -88,355.59 | -88,355.59 |
| SGD | 32,162.11 | 32,162.11 |
| IDR | 89,299.64 | 89,299.64 |
| Total | 3,557,577.41 | 3,557,577.41 |
| December 31, 2023 | ? | ? |
| USD | 3,347,158.67 | 3,347,158.67 |
| EUR | 1,375.88 | 1,375.88 |
| GBP | 0.05 | 0.05 |
| VND | -64,825.16 | -64,825.16 |
| SGD | 1,363.89 | 1,363.89 |
| IDR | 106,215.87 | 106,215.87 |
| Total | 3,391,289.20 | 3,391,289.20 |
(2) Interest risk - risk for cash flow changes
Interest risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash flowsdue to market rate. As of June 30, 2024, Supor’s bank borrowings are at a fixed rate, Supor's gross profits and shareholders'equities will not be significantly affected by interest risk.
2. Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to dischargean obligation.
The monetary capital of Supor other than cash is mainly deposited in creditworthy financial institutions, and the entrustedfinancial products are issued by creditworthy financial institutions. The management considers that there is not any significantcredit risk and it is not expected to create losses to Supor as a result of default by the counterparty.
The exposure of the maximum credit risk assumed by Supor is the book value of each financial asset in the balance sheet(including derivative financial instruments). Except for the financial guarantee provided by Supor in Note XVI, Supor has notprovided any other guarantee that may expose Supor to credit risk. The exposure of the maximum credit risk assumed by the abovefinancial guarantees on the balance sheet date has been disclosed in Note XVI.
Supor's credit risk is primarily attributable to receivables. In order to control such risks, Supor has taken the following measures:
(1) Receivables financing and notes receivable
Receivables financing and notes receivable of Supor is mainly bank acceptance bill receivable. Supor conducts ongoingmonitoring on receivables, to avoid significant risks in bad debts.
(2) Accounts receivable
Supor only conducts business with credible and well-reputed third parties. According to Supor's policies, credit evaluations areperformed on all customers to determine the credit limit and terms applicable to the customers. In addition, Supor conductsongoing monitoring on accounts receivable, to avoid significant risks in bad debts.(i) Continue to strengthen risk awareness, strengthen risk management of accounts receivable, and strengthen internal control ofcustomer credit policy management. Customer credit policy adjustments are required to pass the necessary approval procedures.(ii) Keep detailed business records and accounting work. And use the records as important reference for future credit rating. Keepreal time updating on customers' information and learn their latest credit situation, in order to make suitable credit policies.
Supor's accounts receivable from related party SEB S.A. and its affiliates accounted for 65.25% of closing balance (December31, 2023: 60.95%), and the Company's account receivables were expected to have less credit risk. As the Company's credit risksfall into several business partners and customers, as of June 30, 2024, 19.64% (December 31, 2023: 21.00%) of the total accountsreceivable was due from the five largest customers of the Company after deducting receivables from related party SEB S.A. and itsaffiliates. The Company has no significant central credit risk.
(3) Other receivables
Other receivables of Supor are mainly export rebate receivable and deposit as security receivable, etc. Supor performedcollective management and ongoing monitoring on such receivables and related business to avoid significant risks in bad debts.
3. Liquidity risk
Liquidity risk is the risk that Supor may encounter deficiency of funds in meeting obligations associated with cash or otherfinancial assets settlement. Liquidity risk is possibly attributable to failure in selling financial assets at fair value on a timely basis,or failure in collecting liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimatedcash flows.
In order to control such risk, Supor optimizes the structure of assets and liabilities, and finally maintains a balance betweenfinancing sustainability and flexibility.Financial instruments classified based on remaining time period till maturity
Unit: RMB
| Item | Ending balance | ||||
| Book value | Within 1 year | 1-3 years | Over 3 years | Total | |
| Financial assets | |||||
| Monetary capital | 1,994,094,960.25 | 1,994,094,960.25 | 1,994,094,960.25 | ||
Transactional financialassets
| Transactional financial assets | 180,164,631.01 | 180,164,631.01 | 180,164,631.01 | ||
| Notes receivable | 11,404,422.19 | 11,404,422.19 | 11,404,422.19 | ||
| Accounts receivable | 3,279,868,209.80 | 3,279,868,209.80 | 3,279,868,209.80 |
Receivables financing
| Receivables financing | 193,637,531.38 | 193,637,531.38 | 193,637,531.38 | ||
| Other receivables | 20,572,845.75 | 20,572,845.75 | 20,572,845.75 | ||
| Other debt investment | 715,128,780.80 | 496,785,000.00 | 240,955,000.00 | 737,740,000.00 |
Subtotal
| Subtotal | 6,394,871,381.18 | 6,176,527,600.38 | 240,955,000.00 | 6,417,482,600.38 | |
| Financial liabilities | 0 | ||||
| Short-term borrowings | 199,065,687.57 | 200,000,000.00 | 200,000,000.00 |
Notes payable
| Notes payable | 1,415,650,000.00 | 1,415,650,000.00 | 1,415,650,000.00 | ||
| Accounts payable | 3,254,803,073.88 | 3,254,803,073.88 | 3,254,803,073.88 | ||
| Other payables | 131,222,347.65 | 131,222,347.65 | 131,222,347.65 |
Other current liabilities
| Other current liabilities | 11,404,422.19 | 11,404,422.19 | 11,404,422.19 | ||
| Lease obligation | 205,262,031.17 | 55,710,618.71 | 112,405,216.69 | 80,622,419.98 | 248,738,255.38 |
Subtotal
| Subtotal | 5,217,407,562.46 | 5,068,790,462.43 | 112,405,216.69 | 80,622,419.98 | 5,261,818,099.10 |
(Continued)
| Item | Beginning balance |
| Book value | Within 1 year | 1-3 years | Over 3 years | Total | |
| Financial assets |
Monetary capital
| Monetary capital | 3,548,277,442.44 | 3,548,277,442.44 | 3,548,277,442.44 | ||
| Transactional financial assets | 351,137,787.54 | 351,137,787.54 | 351,137,787.54 | ||
| Notes receivable | 15,311,935.98 | 15,311,935.98 | 15,311,935.98 |
Accounts receivable
| Accounts receivable | 2,858,247,356.03 | 2,858,247,356.03 | 2,858,247,356.03 | ||
| Receivables financing | 363,532,765.35 | 363,532,765.35 | 363,532,765.35 | ||
| Other receivables | 16,126,721.38 | 16,126,721.38 | 16,126,721.38 |
Other debt investment
| Other debt investment | 951,306,342.48 | 289,940,000.00 | 695,085,000.00 | 985,025,000.00 | |
| Subtotal | 8,103,940,351.20 | 7,442,574,008.72 | 695,085,000.00 | 8,137,659,008.72 | |
| Financial liabilities |
Short-term borrowings
| Short-term borrowings | 199,741,167.36 | 200,000,000.00 | 200,000,000.00 | ||
| Notes payable | 1,235,000,000.00 | 1,235,000,000.00 | 1,235,000,000.00 |
Accounts payable
| Accounts payable | 3,205,607,853.18 | 3,205,607,853.18 | 3,205,607,853.18 | ||
| Other payables | 147,617,550.27 | 147,617,550.27 | 147,617,550.27 | ||
| Other current liabilities | 10,761,655.33 | 10,761,655.33 | 10,761,655.33 |
Lease obligation
| Lease obligation | 224,849,380.79 | 58,560,520.38 | 117,066,276.20 | 91,225,179.97 | 266,851,976.55 |
| Subtotal | 5,023,577,606.93 | 4,857,547,579.16 | 117,066,276.20 | 91,225,179.97 | 5,065,839,035.33 |
Note: Other current assets are term deposits for the purpose of obtaining benefits.(II) Transfer of financial assetsTransferred but not wholly derecognized financial assetsFor details, please refer to Note VII. "3. Notes receivable" and "27. Other current liabilities".
XIII. Disclosure of Fair Value
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: RMB
| Item | Fair value as of the balance sheet date | |||
| Level 1 | Level 2 | Level 3 | Total | |
| I. Recurring Fair Value Measurement | -- | -- | -- | -- |
| (I) Transactional financial assets | 180,164,631.01 | 180,164,631.01 | ||
| (II) Other debt investments | 715,128,780.80 | 715,128,780.80 | ||
| (III) Receivables financing | ||||
| (1) Notes receivable | 193,637,531.38 | 193,637,531.38 | ||
| II. Non-continued Measurement of Fair Value | -- | -- | -- | -- |
2. Basis for determining the market value of continuous and non-continuous Level 1 fair valuemeasurement items
None
3. Qualitative and quantitative information of continuous and non-continuous Level 2 fair valuemeasurement items, valuation techniques adopted and important parametersThe fair value of the financial products, other debt investment, and receivables financing are in the financial assets measured at thefair value with their changes included into the current profits and losses and its fair value is determined by valuation technique.The valuation technique should make the best use of available observable market data and rely as little as possible on the specificestimates of the entity.
4. Qualitative and quantitative information of continuous and non-continuous Level 2 fair valuemeasurement items, valuation techniques adopted and important parametersNone
5. Fair value of the financial assets and financial liabilities not measured at fair valueAs at June 30, there was not a significant difference between the book value and fair value of Supor's various financial assets andfinancial liabilities.XIV. Related Parties and Related Transactions
1. Parent company
| Company name | Place of registration | Business nature | Registered capital | Holding proportion over the Company (%) | Voting right proportion over the Company (%) |
| SEB INTERNATIONALE S.A.S | France | Investment company | EUR 830 Million | 83.17% | 83.17% |
Explanation on the parent company of SuporBusiness scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operationpurpose), namely, purchase and subscription of shares, bonds, company shares and interest, various securities and marketablesecurities, and transfer of such securities or notes, all financial operations related to equity participation, purchase, manufacturingand selling of home appliances for the purpose of distribution and rendering of relevant services, all activities directly or indirectlycontributing to the realization of these operations, particularly in the areas of movable properties, real estate, finance, commerceand industry operation.Supor's final controlling party is SEB S.A.
2. Company's subsidiaries
Please refer Note X. "1. Equity in subsidiaries" for details on the Company's subsidiaries.
3. Joint ventures and associated enterprises of the Company
Please refer to Note X. "2. Equity in joint ventures or associated enterprises" for details on the Company's significant joint
ventures and associates.Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current periodor in preceding period but with balance in current period are as follows:
| Name of joint venture or associated enterprise | Relationships with the Company |
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise |
4. Other related parties of the Company
| Related party | Relationship between other related parties and the Company |
| SEB S.A. | Final controlling shareholder |
| SEB ASIA LTD. | Same controlling shareholder |
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder |
| S.A.S. SEB | Same controlling shareholder with the controlling shareholder |
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder |
| LAGOSTINA S.P.A. | Same controlling shareholder |
| GROUPE SEB MOULINEX | Same controlling shareholder with the controlling shareholder |
| GROUPE SEB EXPORT | Same controlling shareholder with the controlling shareholder |
| SEB DEVELOPPMENT SAS | Same controlling shareholder with the controlling shareholder |
| IMUSA USA LLC | Same controlling shareholder |
| Supor Group Co., Ltd. | Company controlled by related natural person |
| ETHERA | Same controlling shareholder with the controlling shareholder |
| SEB Professional (Shanghai) Co,. Ltd. | Same controlling shareholder |
| WMF GROUPE GMBH | Same controlling shareholder |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Same controlling shareholder |
| GROUPE SEB THAILAND | Same controlling shareholder |
| Emsa Taicang Co., Ltd. | Same controlling shareholder |
| Wmf (heshan) Manufacturing Company Limited | Same controlling shareholder |
| EMSA GMBH | Same controlling shareholder |
| GROUPE SEB CANADA | Same controlling shareholder |
| GROUPE SEB ANDEAN S.A. | Same controlling shareholder |
| GROUPE SEB KOREA LTD. | Same controlling shareholder |
| Groupe SEB Innovation Center (Zhe Jiang)Co. Ltd. | Same controlling shareholder |
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | Company controlled by related natural person |
5. Related transactions
(1) Related transactions in the purchase and sale of commodities, and provision and acceptance of laborservicesPurchase of commodities and receiving of services
Unit: RMB
| Related parties | Contents of related transaction | Amount incurred during this period | Transaction quota granted | Exceeding transaction limit or not | Amount incurred during prior period |
| Wuhan Anzai Cookware Co., Ltd. | Finished products | 69,910,686.62 | No | 63,625,052.86 | |
| Wuhan Anzai Cookware Co., Ltd. | Accessories | 17,158,185.35 | No | 25,626,690.95 | |
| GROUPE SEB EXPORT | Finished products | 223,104.57 | No | 1,151,986.78 | |
| GROUPE SEB EXPORT | Accessories | 147,620.00 | No | ||
| TEFAL S.A.S. | Accessories | 13,989,885.04 | No | 4,737,263.35 | |
| LAGOSTINA S.P.A. | Finished products | 2,409,631.88 | No | 393,590.48 | |
| SEB INTERNATIONAL SERVICE S.A.S. | Accessories | 55,119.64 | No | 84,055.57 | |
| SEB INTERNATIONAL SERVICE S.A.S. | Finished products | 165,447.15 | No | 12,778.10 | |
| SEB ASIA LTD. | Finished products | 333,726.61 | No | 43,294.99 | |
| GROUPE SEB MOULINEX | Accessories | 540,589.10 | No | 1,080,900.02 | |
| Wmf (heshan) Manufacturing Company Limited | Finished products | 6,888.85 | No | 116,955.76 | |
| GROUPE SEB THAILAND | Finished products | No | 182,892.82 | ||
| Emsa Taicang Co., Ltd. | Finished products | No | 234,955.76 | ||
| ETHERA | Accessories | 23,654.59 | No | ||
| WMF GROUPE GMBH | Finished products | 30,625,736.93 | No | 32,327,980.44 | |
| SEB Professional (Shanghai) Co,. Ltd. | Finished products | 97,168.57 | No | 271.41 | |
| GROUPE SEB KOREA LTD. | Finished products | 24,966.30 | No | 72,887.77 | |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Finished products | 160,609.57 | No |
Sale of commodities and rendering of services
Unit: RMB
| Related parties | Contents of related transaction | Amount incurred during this period | Amount incurred during prior period |
| SEB ASIA LTD. | Finished products | 3,198,642,188.81 | 2,317,968,141.55 |
| SEB ASIA LTD. | Accessories | 16,782,336.05 | 5,444,308.05 |
| S.A.S. SEB | Finished products | 3,465,969.35 | 7,134,221.91 |
| S.A.S. SEB | Accessories | 341,696.74 | 239,073.76 |
| TEFAL S.A.S. | Finished products | 1,762,548.02 | 1,295,914.74 |
| TEFAL S.A.S. | Accessories | 10,787,351.42 | 9,354,844.69 |
| GROUPE SEB MOULINEX | Finished products | 12,384,297.80 | 6,392,956.57 |
| Supor Group Co., Ltd. | Finished products | 2,022,282.93 | 7,462,121.06 |
| SEB INTERNATIONAL SERVICE S.A.S. | Accessories | 12,088,995.01 | 11,780,996.71 |
| LAGOSTINA S.P.A. | Accessories | 426,029.92 | 129,069.03 |
| IMUSA USA LLC | Finished products | 3,625,408.16 | 5,162,890.46 |
| IMUSA USA LLC | Accessories | 10,395.37 | 21,408.79 |
| SEB Professional (Shanghai) Co,. Ltd. | Finished products | 124,158.64 | 108,194.90 |
| GROUPE SEB CANADA | Finished products | 3,775,240.83 | 4,669,945.78 |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Finished products | 7,420,342.51 | 4,822,561.94 |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Accessories | 18,348.68 | |
| GROUPE SEB ANDEAN S.A. | Accessories | 4,324,196.02 | 235,484.20 |
| Wuhan Anzai Cookware Co., Ltd. | Accessories | 15,018.14 | |
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | Finished products | 778,100.88 |
(2) Related party leases
The Company acts as the lessee:
Unit: RMB
| Leaser | Types of leased assets | Rent costs of short-term leases and low-value asset leases with simplified treatment (if applicable) | Variable lease payments not included in the measurement of lease obligation (if applicable) | Rentals | Interest expense of lease obligation undertaken | Increased right-of-use asset | |||||
| Amount incurred during this period | Amount incurred during prior period | Amount incurred during this period | Amount incurred during prior period | Amount incurred during this period | Amount incurred during prior period | Amount incurred during this period | Amount incurred during prior period | Amount incurred during this period | Amount incurred during prior period | ||
| Supor Group Co., Ltd. | Real estate | 6,910,691.78 | 6,557,239.86 | 1,163,761.31 | 1,536,139.01 | 11,857,927.25 | 19,524,643.99 | ||||
(3) Capital inter-bank lending of related parties
Unit: RMB
| Related parties | Borrowed/lent amount | Start date | Expiry date | Notes |
| Borrowing | ||||
| SEB S.A. | 168,404.06 | January 1, 2024 | Non-fixed term | Loans |
Lending
(4) Key management's emoluments
Unit: RMB 10,000
| Item | Amount incurred during this period | Amount incurred during prior period |
| Key management's remuneration | 899.65 | 870.22 |
| Share-based payment cost and performance incentive funds for key management | 450.32 | 221.21 |
(5) Other related transactions
① Property management, maintenance and berth fees
Unit: RMB
| Service renderer | Purchasing parties | Amount incurred in the current year | Amount incurred during prior period |
| Supor Group Co., Ltd. | The Company | 115,503.52 | |
| Zhejiang Supor Electrical | 120,000.00 |
② Consulting fee
Unit: RMB
| Service renderer | Purchasing parties | Amount incurred in the current year | Amount incurred during prior period |
| SEB ASIA LTD. | The Company | 605,916.00 | 448,824.00 |
| Wuhan Supor Cookware | 306,510.00 | 227,046.00 | |
| Shaoxing Supor | 429,996.00 | 318,516.00 | |
| Zhejiang Supor Electrical | 277,578.00 | 205,614.00 |
③ Research and development (R&D) and human resources services.
Unit: RMB
| Service renderer | Purchasing parties | Amount incurred during this period | Amount incurred during prior period |
| Zhejiang Supor Electrical | Groupe SEB Innovation Center (Zhe Jiang)Co. Ltd. | 264,719.02 | 258,617.18 |
| AFS | GROUPE SEB VIETNAM JOINT STOCK COMPANY | 1,347,118.88 | 1,587,735.40 |
| Groupe SEB Innovation Center (Zhe Jiang)Co. Ltd. | Shaoxing Supor | 1,607,272.00 |
④ Interest expenses
Unit: RMB
| Selling parties | Purchasing parties | Amount incurred during this period | Amount incurred during prior period |
| SEB S.A. | SEADA | 319,528.26 | 293,459.62 |
⑤ Pursuant to the Technical License Contract entered into between Wuhan Supor Cookware Co., Ltd. and S.A.S SEB onDecember 29, 2013, S.A.S SEB licensed Wuhan Supor Cookware Co., Ltd. compensated use of its patent of Household Appliancefor Food Cooking under Pressure with Elastomer Safety Valve and other four utility patents. According to related terms in the
contract signed by both parties, use charges are accrued at 3% of revenue from sales of products licensed. In the current period,Wuhan Supor Cookware Co., Ltd. should pay S.A.S SEB technology use charges of RMB 618,738.79 (2023: RMB 986,969.97),and as of June 30, 2024 a balance of RMB 110,749.87 has not been paid ( December 31, 2023: RMB 111,278.17).
⑥ Pursuant to the Trademark License entered into between Wuhan Supor Cookware Co., Ltd. and LAGOSTINA SPA. onDecember 15, 2014, LAGOSTINA SPA licensed Wuhan Supor Cookware Co., Ltd. for compensated use of its trademark"LAGOSTINA". According to related terms in the contract signed by both parties, use charges are accrued at 4% of revenue fromsales of products licensed. This year, Wuhan Supor Cookware should pay LAGOSTINA SPA. a trademark royalty of RMB1,689.38 (RMB 1,071.69 in 2023), which has been fully paid by June 30, 2024 (RMB 1,071.69 as of December 31, 2023).
⑦ Pursuant to the Trademark License entered into between Omegna and LAGOSTINA SPA. on December 5, 2016,LAGOSTINA SPA licensed Omegna for compensated use of its trademark "LAGOSTINA". According to related terms in thecontract signed by both parties, use charges are accrued at 4% of revenue from sales of products licensed. In the current period,Omegna should pay LAGOSTINA SPA. trademark use charges of RMB 40,131.92 (2023: RMB 6,525.10), and as of June 30,2024, a balance of RMB 46,657.02 has not been paid (December 31, 2023: RMB 3,392,562.80).
⑧ Shaoxing Supor purchased and used particles product of air purifier and relevant technology in accordance with Agreement onPurchase and Using for Particles of Air Purifier signed by Shaoxing Supor on April 25, 2016 with ETHERA. According torelevant terms in the contract signed by both parties, Shaoxing Supor should pay technology transfer fee RMB 0 (2023: RMB8,621.96) to ETHERA in current period, which was calculated as per corresponding unit price of actual total sales. This fee hasbeen fully paid by June 30, 2024 (fully paid as of December 31, 2023).
6. Receivables and payables by related parties
(1) Items receivable
Unit: RMB
| Items | Related parties | Closing balance | Opening balance | ||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Accounts receivable: | SEB ASIA LTD. | 2,176,846,986.30 | 65,305,409.59 | 1,780,235,700.55 | 53,407,071.02 |
| S.A.S. SEB | 1,524,932.88 | 45,747.99 | 1,406,560.86 | 42,196.83 | |
| TEFAL S.A.S. | 8,336,417.55 | 250,092.53 | 5,793,936.65 | 173,818.10 | |
| SEB INTERNATIONAL SERVICE S.A.S. | 9,153,186.43 | 274,595.59 | 5,586,161.59 | 167,584.85 | |
| GROUPE SEB MOULINEX | 7,794,489.23 | 235,608.21 | 5,481,313.07 | 166,201.95 | |
| IMUSA USA LLC | 2,076,699.06 | 62,300.97 | 1,802,613.02 | 54,078.39 | |
| Supor Group Co., Ltd. | 274,958.44 | 14,145.42 | 16,238.60 | 811.93 | |
| SEB Professional (Shanghai) Co,. Ltd. | 14,744.38 | 442.33 | 101,518.92 | 3,045.57 | |
| GROUPE SEB CANADA | 2,827,883.07 | 84,836.49 | 1,337,688.11 | 40,130.64 | |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | 7,598,883.42 | 227,966.50 | 5,001,845.80 | 150,055.37 | |
| GROUPE SEB ANDEAN S.A. | 3,924,152.48 | 117,724.57 | 304,479.89 | 9,134.40 | |
| LAGOSTINA S.P.A. | 308,603.05 | 9,258.09 | 53,387.75 | 1,601.63 | |
| Groupe SEB Innovation Center (Zhe Jiang)Co. Ltd. | 280,374.16 | 8,411.22 | 347,080.36 | 10,412.41 | |
| Total | 2,220,962,310.45 | 66,636,539.50 | 1,807,468,525.17 | 54,226,143.09 | |
| Advance payment: | EMSA GMBH | 197.55 | 197.55 | ||
| Total | 197.55 | 197.55 | |||
| Other receivables: | Supor Group Co., Ltd. | 165,000.00 | 121,000.00 | 165,000.00 | 98,500.00 |
| Total | 165,000.00 | 121,000.00 | 165,000.00 | 98,500.00 |
(2) Payables
Unit: RMB
| Items | Related parties | Ending book balance | Beginning book balance |
| Accounts payable: | Wuhan Anzai Cookware Co., Ltd. | 8,677,405.45 | 19,000,235.48 |
| WMF GROUPE GMBH | 9,579,969.25 | 8,344,358.20 | |
| GROUPE SEB EXPORT | 12,895.06 | 73,810.00 | |
| TEFAL S.A.S. | 9,293,014.30 | 4,296,587.82 | |
| S.A.S. SEB | 113,393.05 | 113,921.35 | |
| LAGOSTINA S.P.A. | 1,460,358.00 | 5,725,894.53 | |
| GROUPE SEB MOULINEX | 905,072.38 | 1,356,062.24 | |
| GROUPE SEB THAILAND | 71,925.59 | ||
| SEB INTERNATIONAL SERVICE S.A.S. | 74,254.52 | 17,570.25 | |
| ETHERA | 30,729.78 | 54,519.37 | |
| Groupe SEB Innovation Center (Zhe Jiang)Co. Ltd. | 718,456.36 | ||
| Supor Group Co., Ltd. | 6,536.00 | ||
| Wmf (heshan) Manufacturing Company Limited | 7,784.40 | ||
| SEB Professional (Shanghai) Co,. Ltd. | 129.00 | ||
| SEB ASIA LTD. | 342,313.62 | 152,068.55 | |
| SEB DEVELOPPMENT SAS | 1,030,968.94 | ||
| Total | 30,497,189.81 | 40,963,043.68 | |
| Contract liabilities: | Supor Group Co., Ltd. | 316,092.76 | 381,292.07 |
| Total | 316,092.76 | 381,292.07 | |
| Other payables: | SEB S.A. | 15,779,739.22 | 15,611,300.30 |
| Wuhan Anzai Cookware Co., Ltd. | 50,000.00 | 50,000.00 | |
| Total | 15,829,739.22 | 15,661,300.30 | |
| Lease obligation: | Supor Group Co., Ltd. | 46,104,337.81 | 52,956,539.46 |
| Total | 46,104,337.81 | 52,956,539.46 |
XV. Share-based payment
1. Overall information
? Applicable □ Not-applicable
Unit: RMB
| Granted object category | Granted in the current period | Vested in the current period | Released in the current period | Invalid in the current period | ||||
| Share number | Amount | Share number | Amount | Share number | Amount | Share number | Amount | |
| Management | 332,000 | 18,824,400.00 | ||||||
| Sales personnel | 110,000 | 6,237,000.00 | ||||||
| R&D personnel | 113,750 | 6,449,625.00 | ||||||
| Total | 555,750 | 31,511,025.00 | ||||||
Stock options or other equity instruments issued to the public at the end of the period? Applicable □ Not-applicableRestricted stock incentive plans in 2021 and 2022:
| Granted object category | Stock options issued to the public at the end of the period | Other equity instruments issued to the public at the end of the period | ||
| The range of exercise price of stock options | The remaining period of the contract | The range of exercise price of stock options | The remaining period of the contract | |
| Management, sales personnel, and R&D personnel | RMB1/share | 1.58 - 2.36 years | ||
Stock Option Incentive Plan in 2023:
| Granted object category | Stock options issued to the public at the end of the period | Other equity instruments issued to the public at the end of the period | ||
| The range of exercise price of stock options | The remaining period of the contract | The range of exercise price of stock options | The remaining period of the contract | |
| Management, sales personnel, and R&D personnel | RMB 36.49/share | 3.36 years | ||
2. Equity-settled share-based payment
? Applicable □ Not-applicable
Unit: RMB
| Restricted stock incentive plans in 2021 and 2022 | Related Information |
| Determination method for fair value of equity instruments on grant date | According to the market price on the grant date. |
Determination method for the optimal estimate of thenumber of equity instruments expected to vest
| Determination method for the optimal estimate of the number of equity instruments expected to vest | Based on the corresponding equity instruments of incentive targets, the performance of the Company and the forecast of future performance of the Company |
| The significant difference between this period estimate and last period | None |
| Capital reserve accumulated due to equity-settled share-based payment | 100,646,178.85 |
| Total expenses incurred due to equity-settled share-based payment transactions | 3,326,046.00 |
| Stock Option Incentive Plan in 2023 | Related Information |
| Determination method for fair value of equity instruments on grant date | Fair value in accordance of the Black-Scholes model |
| Important parameters for fair value of equity instruments on grant date | Estimated dividends, historical volatility, and risk-free interest rate |
| Determination method for the optimal estimate of the number of equity instruments expected to vest | Based on the corresponding equity instruments of incentive targets, the performance of the Company and the forecast of future performance of the Company |
| The significant difference between this year's estimate and last year | None |
| Capital reserve accumulated due to equity-settled share-based payment | 7,261,255.05 |
| Total expenses incurred due to equity-settled share-based payment transactions in this year | 3,947,844.00 |
Other remarks:
According to the 2022 Equity Incentive Plan deliberated and approved by the First Interim General Meeting of Shareholders2022 held on September 21, 2022, the Company used its self-owned capital to repurchase 1,332,500 shares of the Company'sshares in the form of centralized competitive price transaction for the incentive plan, and increased treasury shares by RMB69,398,019.65. On October 12, 2022, the Company granted 1,253,500 shares to incentive employees at a grant price of RMB 1.00per share. The above grant reduced the treasury shares by RMB 65,668,429.65 and offset the undistributed profit at the beginningof the year by RMB 64,414,929.65. At the same time, the Company confirmed its stock repurchase obligation and increasedtreasury shares by RMB 1,253,500.00. On February 1, 2023, the Company granted 79,000 shares to the remaining incentiveemployees at a grant price of RMB 1.00 per share. The above grant reduced treasury shares by RMB 3,650,590.00 and offset theundistributed profit at the beginning of the year by RMB 3,650,590.00. At the same time, the Company confirmed its stockrepurchase obligation and increased treasury shares by RMB 79,000.00.The impact of 2021 Equity Incentive Plan on the capital reserve is RMB 58,961,502.97 at the beginning of the period, andwith an accrual of RMB 1,598,142.00 in the year, amounting to an accrued amount of RMB 60,559,644.97.
The impact of 2022 Equity Incentive Plan on the capital reserve was RMB 38,358,629.88 at the beginning of the period, andwith an accrual of RMB 1,727,904.00 in the year, amounting to an accrued amount of RMB 40,086,533.88.
The impact of 2023 Equity Incentive Plan on the capital reserve is RMB 3,313,411.05 at the beginning of the period, and withan accrual of RMB 3,947,844.00 in the year, amounting to an accrued amount of RMB 7,261,255.05.
3. Current share-based payment expenses
? Applicable □ Not-applicable
Unit: RMB
| Granted object category | Equity-settled share-based payment amount | Cash-settled share-based payment amount |
| Management | 4,857,231.02 | |
| Sales personnel | 1,262,827.79 | |
| R&D personnel | 1,153,831.19 | |
| Total | 7,273,890.00 |
XVI. Commitments and Contingencies
1. Contingencies
(1) Significant contingencies at the date of balance sheet
In 2020, export customers filed legal proceedings against Shaoxing Supor, a subsidiary, on the grounds of user disputes. Thiscase has not been settled yet. Based on the principle of conservatism, Supor still retains an estimated liability of RMB 4 million(December 31, 2023: RMB 4 million) as at June 30, 2024. In 2021, export customers filed claims for product quality problems
against Shaoxing Supor, a subsidiary, on the grounds of user disputes, due to the pending conclusion of the case, and based on theprinciple of conservatism, Supor still retained an estimated liability of RMB 1.54 million (December 31, 2023: RMB 1.54 million)on June 30, 2024.Contingent liabilities formed by financial guarantee and their financial impactSupor signs tripartite acceptance agreements with distributors and banks, and Supor provides financing guarantee for the banks toissue bank acceptance bills to the distributors. In the event that Supor endorses and assigns an acceptance bill obtained by Supor,and if the distributor fails to repay the difference between the security and the amount of the acceptance bill after the maturity ofthe acceptance bill, Supor will bear part of the loss of the difference that the bank has not recovered from the distributor. As atJune 30, 2024, the risk exposure undertaken by Supor was RMB 210.35 million (December 31, 2023, RMB 343.91 million) andthe estimated liabilities accrued by the Company under the financial guarantee contracts for the risk exposure amounted to RMB
1.05 million (RMB 1.72 million as of December 31, 2023).
(2) A statement shall be given even if the Company has no significant contingencies to disclose.The Company has no significant contingencies to disclose.XVII. Events after the Balance Sheet Date
1. Profit distribution situation
NoneXVIII. Other Important Matters
1. Segment information
(1) Determination basis and accounting policy of report segment
Supor establishes operating segment according to internal organizational structure, management requirement and internal reportsystem; determines report segment and disclose segment information based on Operating Segment.Operating Segment refers to Supor's organization meeting following conditions: (1) The organization can yield income and costin daily activity; (2) Supor's management can appraise operating result of the organization regularly, so as to allocate resources ona targeted basis and evaluate its performance; (3) Supor can obtain financial condition, operating result, cash flow and otherrelevant accounting information of the organization. Two or more operating segments, which have similar economiccharacteristics and meet a certain condition, can be combined into an operating segment.The preparation of branch reports is conducted with the revenue of trans-branch transaction measured at the actual transactionprice. The accounting policy for branch report preparation is consistent with that used in Supor's financial statement.Supor, with main product focused on cookware and SDA (small domestic appliances) in kitchen, establishes report segmentbased on product and geographic segments and assets and liabilities shared by product segments is unable to be clearlydistinguished.
(2) Financial information of reportable segments
Unit: RMB
| Item | Cookware | Electrical products | Others | Inter-segment offsetting | Total |
| Revenue from main business | 3,002,863,732.67 | 7,910,223,642.64 | 93,097,879.86 | 172,506,283.70 | 10,833,678,971.47 |
| Cost of main business | 2,217,258,563.86 | 6,052,244,396.01 | 79,446,321.56 | 172,636,050.29 | 8,176,313,231.14 |
(3) Other explanations
② Geographic segment
Information on Supor's income from external transactions and non-current assets (excluding financial assets and deferred incometax assets, the same below) by region is shown in the following table. Income from external transactions is divided according tothe location of customers who receive services or purchase products. Non-current assets are classified as per the physical locationof the assets (for fixed assets and construction in progress) or the location where they are allocated to related business (forintangible assets) or the location of joint ventures and associated enterprises.
| Item | Domestic | Foreign | Inter-segment offsetting | Total |
| Revenue from main business | 7,432,782,168.71 | 3,417,293,105.42 | 16,396,302.66 | 10,833,678,971.47 |
| Cost of main business | 5,258,198,694.30 | 2,934,373,233.45 | 16,258,696.61 | 8,176,313,231.14 |
| Non-current assets | 1,994,680,999.56 | 61,144,804.27 | 117,033,788.09 | 1,938,792,015.74 |
③ Major customers
Among Supor's customers, one customer (2023: 1) whose revenue from a single customer accounted for 10% or more of Supor'stotal revenue was related party SEB S.A. and its affiliates, accounting for approximately 29.89% (same period in 2023: 23.79%) ofSupor's total revenue.
XIX. Notes to Items of Parent Company Financial Statements
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
| Ages | Ending book balance | Beginning book balance |
| Within 1 year (including 1 year) | 669,325,449.60 | 639,632,187.73 |
| Total | 669,325,449.60 | 639,632,187.73 |
(2) Classified disclosure by the bad debt provision method
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Accounts receivable for provision for bad debts made on the basis of portfolio | 669,325,449.60 | 100.00% | 17,259,163.34 | 2.58% | 652,066,286.26 | 639,632,187.73 | 100.00% | 15,501,798.17 | 2.42% | 624,130,389.56 |
| Including: | ||||||||||
| Portfolio 1: age portfolio | 574,935,545.17 | 85.90% | 17,199,766.36 | 2.99% | 557,735,778.81 | 515,929,581.71 | 80.66% | 15,395,153.38 | 2.98% | 500,534,428.33 |
| Portfolio 2: low-risk portfolio | 59,396,976.89 | 8.87% | 59,396.98 | 0.10% | 59,337,579.91 | 106,644,785.32 | 16.67% | 106,644.79 | 0.10% | 106,538,140.53 |
| Portfolio 3: merged related parties portfolio | 34,992,927.54 | 5.23% | 0.00% | 34,992,927.54 | 17,057,820.70 | 2.67% | 0.00% | 17,057,820.70 | ||
| Total | 669,325,449.60 | 100.00% | 17,259,163.34 | 2.58% | 652,066,286.26 | 639,632,187.73 | 100.00% | 15,501,798.17 | 2.42% | 624,130,389.56 |
The number of categories for provision for bad debts by portfolio: Portfolio 1Provision for bad debts made on the basis of portfolio: RMB 17,199,766.36
Unit: RMB
| Name | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year | 574,935,545.17 | 17,199,766.36 | 2.99% |
| Total | 574,935,545.17 | 17,199,766.36 | |
If provision for bad debts for accounts receivable is made based on the general model of expected credit losses:
□ Applicable ? Not-applicable
(3) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in current period | Closing balance | |||
| Accrued | Collected or reversed | Written off | Others | |||
| Provision for bad debts for accounts receivable | 15,501,798.17 | 1,757,365.17 | 17,259,163.34 | |||
| Total | 15,501,798.17 | 1,757,365.17 | 17,259,163.34 | |||
(4) Accounts receivable and contract assets details of the top 5 closing balances by debtors
Unit: RMB
| Entity name | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Proportion to the total closing balance of accounts receivable and contract assets | Provision for bad debts for accounts receivable and closing balance of contract asset impairment provision |
| SEB S.A. and its affiliates | 574,380,695.74 | 85.81% | 17,231,420.87 | ||
| Customer G | 44,192,988.76 | 6.60% | 44,192.99 | ||
| Supor Vietnam | 13,448,673.77 | 2.01% | |||
| Wuhan Supor Cookware | 8,975,246.19 | 1.34% |
| Customer M | 5,746,499.69 | 0.86% | 5,746.50 | ||
| Total | 646,744,104.15 | 96.62% | 17,281,360.36 |
2. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 621,669,532.19 | 674,127,502.50 |
| Total | 621,669,532.19 | 674,127,502.50 |
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
| Nature of receivables | Ending book balance | Beginning book balance |
| Deposit as security | 305,528.00 | 305,528.00 |
| Fund pool | 617,771,173.19 | 671,436,662.09 |
| Temporary payment receivable | 5,614,426.41 | 3,968,595.43 |
| Personal deposit | 329,174.76 | 551,458.41 |
| Total | 624,020,302.36 | 676,262,243.93 |
2) Disclosure by aging
Unit: RMB
| Ages | Ending book balance | Beginning book balance |
| Within 1 year (including 1 year) | 621,368,151.82 | 675,240,966.75 |
| 1-2 years | 1,730,901.36 | 85,528.00 |
| 2-3 years | 20,000.00 | 34,500.00 |
| Over 3 years | 901,249.18 | 901,249.18 |
| Over 5 years | 901,249.18 | 901,249.18 |
| Total | 624,020,302.36 | 676,262,243.93 |
3) Classified disclosure by the bad debt provision method
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Accounts receivable for | 1,187,578.89 | 0.19% | 1,187,578.89 | 100.00% | 1,187,578.89 | 0.18% | 1,187,578.89 | 100.00% | ||
| provision made on an individual basis | ||||||||||
| Notes receivable for provision for bad debts made on the basis of portfolio | 622,832,723.47 | 99.81% | 1,163,191.28 | 0.19% | 621,669,532.19 | 675,074,665.04 | 99.82% | 947,162.54 | 0.14% | 674,127,502.50 |
| Including: | ||||||||||
| Portfolio 1: age portfolio | 5,061,550.28 | 0.81% | 1,163,191.28 | 22.98% | 3,898,359.00 | 1,699,199.49 | 0.25% | 947,162.54 | 55.74% | 752,036.95 |
| Portfolio 2: low-risk portfolio | 617,771,173.19 | 99.00% | 617,771,173.19 | 673,375,465.55 | 99.57% | 673,375,465.55 | ||||
| Total | 624,020,302.36 | 100.00% | 2,350,770.17 | 0.38% | 621,669,532.19 | 676,262,243.93 | 100.00% | 2,134,741.43 | 0.32% | 674,127,502.50 |
Provision for bad debts made on an individual basis: RMB 1,187,578.89
Unit: RMB
| Name | Opening balance | Closing balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision proportion | Reasons | |
| Customer H | 1,187,578.89 | 1,187,578.89 | 1,187,578.89 | 1,187,578.89 | 100.00% | It is not expected to be recovered, so the provision for bad debts is fully accrued. |
| Total | 1,187,578.89 | 1,187,578.89 | 1,187,578.89 | 1,187,578.89 | ||
The number of categories for provision for bad debts by portfolio: Portfolio 1Provision for bad debts made on the basis of portfolio: RMB 1,163,191.28
Unit: RMB
| Name | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year (including 1 year) | 2,409,399.74 | 120,469.99 | 5.00% |
| 1-2 years | 1,730,901.36 | 138,472.11 | 8.00% |
| 2-3 years | 20,000.00 | 3,000.00 | 15.00% |
| Over 5 years | 901,249.18 | 901,249.18 | 100.00% |
| Total | 5,061,550.28 | 1,163,191.28 | |
Provision for bad debts based on the general model of expected credit losses
Unit: RMB
| Provision for bad debts | Phase I | Phase II | Phase III | Total |
| Expected credit loss in future 12 months | Expected credit loss in the entire duration (without credit impairment) | Expected credit loss in the entire duration (credit impairment) | ||
| Balance on January 1, 2024 | 947,162.54 | 1,187,578.89 | 2,134,741.43 | |
| Balance on January 1, 2024 in the current period | ||||
| Withdrawal in the current | 216,028.74 | 216,028.74 |
| period | ||||
| Balance on June 30, 2024 | 1,163,191.28 | 1,187,578.89 | 2,350,770.17 |
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable ? Not-applicable
4) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in current period | Closing balance | |||
| Accrued | Collected or reversed | Write-off or charge-off | Others | |||
| Provision for bad debts of other receivables | 2,134,741.43 | 216,028.74 | 2,350,770.17 | |||
| Total | 2,134,741.43 | 216,028.74 | 2,350,770.17 | |||
5) Other receivables details of the top 5 closing balances by debtors
Unit: RMB
| Entity name | Nature of receivables | Closing balance | Ages | Proportion in the total closing balance of other receivables | Closing balance of provision for bad debts |
| Hainan Supor E-commerce Company | Fund pool | 216,784,300.00 | Within 1 year | 34.74% | |
| Zhejiang Supor Electrical | Fund pool | 131,863,794.89 | Within 1 year | 21.13% | |
| Wuhan Supor Cookware | Fund pool | 108,212,172.85 | Within 1 year | 17.34% | |
| Omegna | Fund pool | 78,898,286.53 | Within 1 year | 12.64% | |
| Shanghai WMF | Fund pool | 60,000,000.00 | Within 1 year | 9.62% | |
| Total | 595,758,554.27 | 95.47% |
6) Reported as other receivables due to centralized fund management
Unit: RMB
| Reported as other receivables due to centralized fund management | 617,771,173.19 |
3. Long-term equity investment
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiaries | 2,789,880,789.36 | 2,789,880,789.36 | 2,787,004,539.36 | 2,787,004,539.36 | ||
| Investments in associates and joint ventures | 60,920,940.10 | 60,920,940.10 | 61,626,527.25 | 61,626,527.25 | ||
| Total | 2,850,801,729.46 | 2,850,801,729.46 | 2,848,631,066.61 | 2,848,631,066.61 |
(1) Investments in subsidiaries
Unit: RMB
| Invested unit | Opening balance (book value) | Opening balance of impairment provision | Increase/decrease | Closing balance (book value) | Closing balance of impairment provision | |||
| Investment increased | Investment decreased | Accrued impairment provision | Others | |||||
| Wuhan Supor Pressure Cooker | 240,428,244.41 | 240,428,244.41 | ||||||
| P&R Products | 20,804,297.92 | 20,804,297.92 | ||||||
| Yuhuan Sales Company | 2,990,149.81 | 2,990,149.81 | ||||||
| Zhejiang Supor Electrical | 784,121,383.11 | 722,028.00 | 784,843,411.11 | |||||
| Shaoxing Supor | 652,369,686.26 | 738,888.00 | 653,108,574.26 | |||||
| Supor Vietnam | 105,143,165.64 | 105,143,165.64 | ||||||
| Wuhan Recycling | 1,000,000.00 | 1,000,000.00 | ||||||
| Omegna | 10,000,000.00 | 10,000,000.00 | ||||||
| Shanghai Marketing | 5,000,000.00 | 5,000,000.00 | ||||||
| Wuhan Supor Cookware | 607,152,927.18 | 362,190.00 | 607,515,117.18 | |||||
| SEADA | 11,890,622.45 | 11,890,622.45 | ||||||
| Shanghai WMF | 50,198,022.26 | 23,190.00 | 50,221,212.26 | |||||
| Zhejiang WMF | 104,415,267.98 | 260,658.00 | 104,675,925.98 | |||||
| Supor Large Kitchen Appliance | 101,226,928.70 | 84,528.00 | 101,311,456.70 | |||||
| Shaoxing Supor Housewares | 55,458,345.57 | 363,246.00 | 55,821,591.57 | |||||
| Supor Water Heater | 31,200,000.00 | 31,200,000.00 | ||||||
| Hainan Supor E-commerce Company | 3,605,498.07 | 321,522.00 | 3,927,020.07 | |||||
| Total | 2,787,004,539.36 | 2,876,250.00 | 2,789,880,789.36 | |||||
(2) Investments in associates and joint ventures
Unit: RMB
| Investing unit | Opening balance (book value) | Opening balance of impairment provision | Increase/decrease | Closing balance (book value) | Closing balance of impairment provision | |||||||
| Investment increased | Investment decreased | Investment profit or loss recognized by equity method | Adjustment in other comprehensive income | Changes in other equity | Cash dividend/profit declared for distribution | Accrued impairment provision | Others | |||||
| I. Joint Venture | ||||||||||||
| II. Associated Enterprise | ||||||||||||
| Wuhan Anzai Cookware Co., Ltd. | 61,626,527.25 | -705,587.15 | 60,920,940.10 | |||||||||
| Subtotal | 61,626,527.25 | -705,587.15 | 60,920,940.10 | |||||||||
| Total | 61,626,527.25 | -705,587.15 | 60,920,940.10 | |||||||||
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable ? Not-applicable
The recoverable amount is determined based on the present value of estimated future cash flow of assets
□ Applicable ? Not-applicable
4. Operating incomes and costs
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 1,349,519,521.85 | 1,192,335,337.56 | 1,168,704,643.55 | 981,805,496.52 |
| Revenue from other operations | 33,228,409.53 | 30,070,055.18 | 25,634,866.85 | 23,569,024.43 |
| Total | 1,382,747,931.38 | 1,222,405,392.74 | 1,194,339,510.40 | 1,005,374,520.95 |
Breakdown information of operating income and operating cost:
Unit: RMB
| Contract classification | Total | |
| Operating income | Operating cost | |
| Business type | ||
| Including: | ||
| Cookware | 1,349,519,521.85 | 1,192,335,337.56 |
| Others | 33,228,409.53 | 30,070,055.18 |
| Classified by business area | ||
| Including: | ||
| Domestic | 369,748,720.19 | 285,952,463.58 |
| Foreign | 1,012,999,211.19 | 936,452,929.16 |
Information related to performance obligations:
NoneInformation related to the transaction price allocated to the remaining performance obligations:
At the end of this reporting period, the amount of revenue corresponding to the performance obligations that have been signed buthave not been performed or not yet completed is RMB 4,997,556.65, of which RMB 4,997,556.65 is expected to be recognized asrevenue in 2024.
5. Investment income
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Income from long-term equity investments under the equity method | -705,587.15 | -460,529.47 |
| Investment income from disposal of transactional financial assets | 879,291.91 | 2,620,258.47 |
| Investment income from the disposal of other debt investments | 3,629,637.00 | |
| Investment income of debt investment during the holding period | 52,657.54 | 3,828,273.98 |
| Interest from term deposit | 5,852,397.27 | |
| Total | 3,855,999.30 | 11,840,400.25 |
XX. Supplementary Information
1. Breakdown of non-recurring profit or loss in the current period
? Applicable □ Not-applicable
Unit: RMB
| Item | Amount | Notes |
| Profit and loss on disposal of non-current assets | -1,405,000.23 | |
| Government subsidies included into the current profits and losses (except those that are closely related to the Company's normal business operations, comply with national policies and regulations, available according to determined standards, and have a continuous impact on the profit and loss of the Company) | 5,841,677.89 | |
| Except the effective hedging business related to the normal operation of the Company, profits and losses from fair value changes of held-for-trading financial assets and financial liabilities by non-financial enterprises and profits and losses obtained from disposal of financial assets and financial liabilities | 17,206,786.02 | |
| Other non-operating incomes or expenditures except for the foregoing items | 1,366,434.45 | |
| Minus: influenced amount of income tax | 5,052,136.70 | |
| Influenced amount of minority shareholders' equities (after tax) | 20,604.43 | |
| Total | 17,937,157.00 | -- |
Other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses:
□ Applicable ? Not-applicable
The Company does not have other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses.Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of theInformation of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□ Applicable ? Not-applicable
2. Return on net assets and earnings per share
| Profit of the reporting period | Weighted average | Earnings per share |
| return on net assets | Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | |
| Net profit attributable to shareholders of common shares | 15.45% | 1.181 | 1.181 |
| Net profit attributable to shareholders of common shares after deducting non-recurring profit or loss | 15.15% | 1.158 | 1.158 |
3. Financial Data Difference on Principle of Domestic and Oversea Accounting
(1) Net profit and net assets discrepancies in financial reports disclosed separately under InternationalAccounting Standards and Chinese Accounting Standards
□ Applicable ? Not-applicable
(2) Net profit and net assets discrepancies in financial reports disclosed separately under OverseasAccounting Standards and Chinese Accounting Standards
□ Applicable ? Not-applicable
(3) The reason of accounting data difference under domestic and foreign accounting standard shall beexplained. If the data audited by the foreign audit organization carries out the different adjustment, thename of foreign organization shall be indicated.
Zhejiang Supor Co., Ltd.Chairman: Thierry de LA TOUR D’ARTAISE
August 30, 2024