Zhejiang Supor Co., Ltd.2023 Semiannual Report
August 2023
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND
DEFINITIONS
The Board of Directors and the Board of Supervisors of Zhejiang Supor Co.,Ltd. (hereinafter referred to as the "Company") and all its directors, supervisorsand senior executives warrant that this semiannual report is true, accurate andcomplete, and does not contain any fictitious statements, misleading informationor significant omissions; all directors, supervisors and senior executives of theCompany undertake, separately and jointly, all responsibilities in relation to thetruth, 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 of accountingdepartment (accountant in charge), hereby confirm that the financial reportenclosed in this semiannual report is true, accurate and complete.
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. Pleasebe 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 …………………………………………….…. 2SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICATORS …………………………………………………….….. 6SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEMENT ………………………………………………………... 10SECTION IV CORPORATION GOVERNANCE ………………………………………………………………………………….... 22SECTION V SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES …………………………………………………………... 25SECTION VI SIGNIFICANT EVENTS ……………………………………………………………………………………………... 29SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS …………………………... 39SECTION VIII INFORMATION ON PREFERRED SHARE ……………………………………………………………………….. 46SECTION IX BONDS ………………………………………………………………………………………………………………... 47SECTION X FINANCIAL REPORT …………………………………………………………………………………………….…... 48
CATALOG OF REFERENCE DOCUMENTS
I. 2023 Semiannual Report of the Company and Abstract with the 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 |
| SEB Group | 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) |
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 the reporting
period. Please refer to the 2022 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 semiannual report,as well as the location of the Company's semiannual report archives, remain unchanged during the reporting period. For specific details,please refer to the 2022 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) | 9,982,616,440.73 | 10,323,979,744.82 | -3.31% |
| Net profit attributable to shareholders of listed company (RMB) | 880,618,279.78 | 932,849,164.03 | -5.60% |
| Net profit attributable to shareholders of listed company with non-recurring profit or loss deducted (RMB) | 857,420,949.15 | 909,114,292.90 | -5.69% |
| Net cash flows from operating activities (RMB) | 555,040,511.12 | 1,308,844,866.33 | -57.59% |
| Basic earnings per share (RMB/share) | 1.097 | 1.155 | -5.02% |
| Diluted earnings per share (RMB/share) | 1.095 | 1.155 | -5.19% |
| Weighted average return on net assets | 13.29% | 12.31% | Increased by 0.98 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) | 10,533,075,326.57 | 12,952,655,903.47 | -18.68% |
| Net asset attributable to shareholders of listed company (RMB) | 5,291,005,376.57 | 7,036,084,863.54 | -24.80% |
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 Overseas AccountingStandards and Chinese Accounting Standards
□ Applicable ? Not-applicable
No net profit and net assets discrepancies in financial reports disclosed separately under Overseas Accounting Standards and ChineseAccounting 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) | -1,605,908.96 | |
| 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 and continuously available according to certain standard quota or quantity) | 5,811,842.88 | |
| Except the effective hedging business related to the normal operation of the Company, profits and losses from fair value changes caused by the held transactional finance assets and transactional financial liabilities, and investment income acquired from disposal of transactional financial assets, transactional financial liabilities and available-for-sale financial assets | 25,750,454.86 | |
| Other non-operating incomes or expenditures except for the foregoing items | 53,535.90 | |
| Minus: influenced amount of income tax | 6,778,516.96 | |
| Influenced amount of minority shareholders' equities (after tax) | 34,077.09 | |
| Total | 23,197,330.63 |
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 the
Information 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 Explanatory AnnouncementNo.1 on Disclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurringprofits and losses.
SECTION III DISCUSSION AND ANALYSIS OF THE
MANAGEMENT
I. Main Business during the Reporting Period
(I) Main businesses of the CompanyAs China's famous cookware R&D and manufacturing company, Zhejiang Supor Co., Ltd. (hereinafter referred to as "theCompany") is a China's leading manufacturer of small domestic appliances and also the first listed company in China's cookwareindustry. Established in 1994, the headquarters of the Company locates in Hangzhou owning 6 R&D and manufacture bases located inYuhuan City, Hangzhou City, Shaoxing City (Yuecheng District and Keqiao District) in Zhejiang Province, Wuhan City, Hubei Provinceand Ho Chi Minh City, Vietnam.Supor's main businesses include open fire cookware and kitchen utensil, small domestic appliance, large kitchen appliance andH&PC appliance.
(1) Open fire cookware and kitchen utensils mainly include wok, pressure cooker, frying pan, sauce pan, steamer, ceramic slowcooker, kettle, knife, spatula, thermal pot, thermos & flask, kitchen gadgets, crisper, etc.
(2) The small domestic appliance mainly includes electric rice cooker, electric pressure cooker, induction hob, soymilk maker,electric kettle, juicer, slow cooker, electric steamer, electric chafing dish, food processor, baked machine, air fryer, etc.
(3) The large kitchen appliance mainly includes range hood, gas stove, disinfection cabinet, water purifier, embedded steaming oven,water heater, integrated stove, etc.;
(4) The H&PC appliance mainly includes air purifier, clothes steamers, dust collector, floor washer and electric iron.
The Company's cookware and electrical products have been exported to more than 50 countries and regions such as Japan, Europeanand American countries mainly through SEB Group.(II) Industry development and market position of the CompanyIn 2023, transportation and tourism, catering service and other industries took the lead in benefiting from the recovery relativelyfast, while other industries, including cookware and small domestic appliances categories are more sluggish in consumer demands.According to the analysis of consumption data in the first half of the year, the current consumer demand shows signs of a hierarchy.On the one hand, consumer demand for high-quality and high-value products still maintains a rising trend; at the same time, moreconsumers are willing to buy cost-effective products.
In the field of open fire cookware, online emerging platforms such as TikTok and PDD remained relatively fast-growing, whiletraditional e-commerce platforms experienced a slight slump, therefore, the whole retail scale among online channels obtained slightincrease. However, the offline channels still remained subdued. According to monitoring data from AVC, in the first half of 2023,across the eleven major categories of open fire cookware (such as woks, pressure cookers, frying pans, milk pots, stockpots, kettles,casseroles, hot pots, steamers, cookware sets, enamel pots), traditional e-commerce platforms experienced an 11% year-on-year declinein retail sales. Supor continued to outperform the industry in such sluggish market environment and continued to gain market shareswith online market share leading the second brand by more than 4 times and offline market share close to 50%, continuing to remainthe industry's top one. From the performance of specific categories, the performance of pressure cooker, casserole, steamer etc., that
relates to healthy concept were outstanding, and in terms of product materials, cookware made by healthy materials such as steel 316Land titanium were more favored by consumers.
In the field of small domestic appliances, according to AVC aggregated data from January to June 2023 across all channels , smalldomestic appliances (such as coffee machines, 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) reached a total sales of RMB 27.55 billion, with a year-on-year decrease of 8.5%. Despite the temporarydecline in industry sales scale, Supor still outperforms the industry with increasing online and offline market shares in the abovecategories (excluding coffee machines) and were ranked as first and second in the industry respectively. From the performance ofspecific categories, the products that are related to healthy concept such as electric steamers, soymilk maker and health kettles stillmaintaining growth momentum.
(III) Operating condition 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 intimate, comprehensive consumerexperiences.
In the business of open fire cookware, Supor continuously explored the consumer demand and kept accelerating the expansion ofproducts with core competitiveness. Also, combined with consumer demand for healthier, better-looking and other consumer demand,Supor launched a variety of popular products such as the second generation of titanium uncoated non-stick wok, upgrading the titanium-iron alloy overlay technology and improved its non-stick capabilities. In the category of uncoated wok, it held a significant lead insales. During the "618" e-commerce promotion period, it secured the first position on the "Tmall Uncoated Wok List". Another hot-selling product is the lightweight thermo-spot non-stick wok, featuring a high-value creamy appearance and a lightweight pot body, itranked first in the "618 Tmall frying pan V list".
In the business of small domestic appliance, Supor always insists on combining consumer insight with differentiated productinnovation strategies, constantly launching smart, ingenious and healthy creative products. Under the premise that consumers' demandfor "one-person dish" is becoming more and more obvious, the Company has launched a series of small-capacity products, such assmall-capacity fast electric steamers, electric hot pots, soymilk makers and so on. In addition, the Company combined the Internet ofThings technology with Chinese cuisine cooking techniques, and launched an automatic cooking machine that can toss. During the"618" e-commerce promotion period, it won the first place in the "List of Live Streaming Commodities of Kitchen Appliances Brandsin TikTok". Meanwhile, Supor seized the popularity of outdoor travel and launched a portable Mini Italian coffee machine, satisfyingthe needs of coffee enthusiasts in outdoor scenes, and it achieved impressive sales results in the first half of the year.
In the business of H&PC appliances, Supor persistently facilitates the product category developments. For example, under thecleaning appliances category, Supor newly launched a double-roller floor washer, which can easily eliminate hidden bacteria and guardthe health of the family with strong "edge" cleaning technology and electrolytic water clean sterilization. In terms of the clothes steamercategory, Supor continued to keep the leading position in the industry. According to the monitoring data of AVC, the total online marketshare of Supor's clothes steamer category ranked second in the industry in the first half of 2023.
In the business of large kitchen appliances, Supor continued to enhance its brand construction and vigorously develop the integratedstove category. For example, the newly-launched deep-cavity, far-infrared heating, steam-roasting integrated stoves, combining stove,
steaming oven, and storage cabinet, meet consumers' integrated demands very well. In terms of advantageous categories of stoves,according to the monitoring data of AVC, the total online market share of Supor's stove category ranked first in the industry in the firsthalf of 2023.
2. Channel strategy
As for online channels, the Company established good cooperative relations with mainstream e-commerce platforms such as Tmall,JD, PDD, Vipshop and TikTok, and continued to optimize the store matrix and product sales structure to enhance sales performance.In the first half of 2023, the Company's e-commerce business maintained growth momentum, and its proportion in total domestic salesfurther enhanced. In addition, the Company actively explores private traffic marketing and accelerated new member acquisition andretention. The launch of the WeChat store this year was aimed to further tap into potential purchasing demands from WeChat membersand followers to enhance customer loyalty. At the same time, the Company utilizes the marketing cloud platform, strengthens consumeroperations and lifecycle management, offering comprehensive product services to continuously enhance customer satisfaction. In thefirst half of 2023, the Company’s online membership resulted in an 43% year-on-year increase.As for offline channels, Supor has large-scale sales terminals, and in the context of reduced offline customer traffic and changes inconsumer behavior, the Company has continued to optimize its sales network, expand its brand alliances, integrate its brand resources,and strengthen its terminal image management, which has enabled Supor to maintain a dominant position in the offline channel. In tierone and tier two cities, while the traditional contemporary channels are still in decline, the Company maintained good growth throughcommunity group purchases and home-delivery businesses. In tier three and tier four cities, the Company reinforces the comprehensivecooperation with e-commerce platforms in O2O channels to create new increase points in these markets. In terms of B2B business, theCompany carries out points redemption business with a number of large and medium-sized enterprises, including banks and airlines,to further expand its sales channels. At the same time, Supor has strengthened its cooperation with regional real estate developers andrenovation companies to expand its large kitchen appliance business.In terms of export sales, the Company's order quantity was affected by a sluggish global economy and weak demand in Europeanand American markets during the first quarter, resulting in its slight decrease from major export customers. From the second quarter,the Company’s major export customers gradually digested their inventories and increased the number of orders, resulting in an overallyear-on-year increase of 7.18% in export sales in the second quarter.
II. Core Competitiveness Analysis
1. Excellent product innovation ability
Supor has long been focusing on product development, manufacturing and sales in the field of cookware and small domesticappliance. In recent years, the Company has continued to improving the efficiency of R&D and established an innovation center atheadquarter level to enhance synergy of R&D resources within and outside the Company. Externally, the Company continues tointroduce new manufacturing processes and new materials through close cooperation with research institutions and universities.Meanwhile, the Company has maintained close cooperation with SEB Group in innovation to introduce more new product categoriesand technologies. Internally, the innovation center continuously improves the innovation incentive mechanism to encourage internalinnovation across all business units.
In the product design module, the Company integrates industrial design, user experience and consumption trend research intoproduct innovation, so as to further enhance the visual aesthetic feeling, sense of form and sense of experience of products. Meanwhile,the Company has made great efforts to solve users' pain points and bring consumers a better product experience. Since the beginning
of 2023, the Company has won several design and creation related honors, such as "2023 AWE Award - Excellent Product Award","2023 IF Design Award", and "The First Batch of National Key Pilot Units for the Implementation of International Standards forIntellectual Property Rights in Innovation Management in Zhejiang Province", etc.
2. Stable distribution network
Supor has a stable distribution team, and maintains a long-term, good cooperative relationship with distributors and agencyoperators. In terms of online channels, the Company continues to promote the "Direct to Consumer" mode and "One-Basket Project",and it has built a complete matrix of e-commerce stores to provide differentiated product mixes for different consumer groups togetherwith distributors and agency operators. In terms of offline channels, the Company has a huge number of sales terminals and serviceoutlets, which are stationed in large-scale mainstream superstores in tier one and two cities, and has high coverage in O2O channels intier three and four cities, so as to ensure that consumers can purchase the Company's products in a more convenient way.
3. Strong R&D and manufacturing capacity of open fire cookware and small domestic appliances
Supor has built up six R&D production bases, respectively in Yuhuan City, Hangzhou City, Shaoxing City (Yuecheng and Keqiao)in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam. In particular, the annual production scale ofWuhan Base and Shaoxing Base ranked the top in the industry. Over the years, the Company has continued to improve its industrialefficiency, the strong R&D power and the highly professional R&D team provide a powerful guarantee for the quality and innovationcapacity of Supor products.
4. Synergistic effect of integration with SEB
Since 2006, the Company has started to establish strategic cooperation relationship with SEB Group which owns a long history ofmore than 160 years with leading market shares of cookware and small domestic appliances worldwide. The powerful cooperationbetween Supor and SEB Group has brought stable export orders to the Company every year, and increased its overall business size andmanufacturing capacity. Meanwhile, the Company enhanced its the cooperation in aspects of production, R&D, quality control andmanagement with SEB Group, has continuously enhanced the product competitiveness of the Company through the continuousintroduction of new categories and technologies.
5. Professional advantage of multiple brands and categories in kitchen field
In terms of multi-brand operations, the Company also introduced a lot of high-end brands under SEB Group in addition to Suporbrand, such as WMF, LAGOSTINA, KRUPS, and TEFAL, so as to fully cover the mid-to-high end brands in kitchen field. As forcategory expansions, the Company actively explores new categories such as large kitchen appliances and H&PC appliances in additionto its traditional advantageous business such as open fire cookware and small domestic appliances. The Company has formed a strongcompetition advantages thanks to its multiple brands layouts and product categories in kitchen field.III. Main Business AnalysisOverviewDuring the reporting period, the Company achieved operating income of RMB 9,982,616,440.73, a year-on-year decrease of
3.31%. The Company realized a total profit of RMB 1,098,129,774.21, representing a year-on-year decrease of 12.36%. The earningsper share was RMB 1.097 representing a year-on-year decrease of 5.02%. The Company's main business revenue was RMB9,872,392,009.04, a year-on-year decrease of RMB 384,047,422.53, down by 3.74%. The Company's main business cost was RMB7,352,664,336.65, a year-on-year decrease of RMB 270,049,050.54, down by 3.54%. The gross margin of the main business was
25.52%, a year-on-year decrease of 0.16%. Among them, the realized revenue from the main business of cooking utensils was RMB
2,516,239,088.69, a year-on-year decrease of 17.95%; the realized revenue from the main business of electric appliance was RMB7,342,682,261.73, a year-on-year increase of 2.34%; the realized revenue from the main business of domestic sales was RMB7,421,861,346.49, a year-on-year increase of 0.03%; the realized revenue from the main business of export sales was RMB2,450,530,662.55, a year-on-year decrease of 13.61%.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 | 9,982,616,440.73 | 10,323,979,744.82 | -3.31% | |
| Operating cost | 7,444,829,256.71 | 7,670,449,954.61 | -2.94% | |
| Sales expenses | 1,098,400,634.74 | 1,078,585,004.10 | 1.84% | |
| Administrative expenses | 189,032,788.40 | 188,658,026.76 | 0.20% | |
| Financial expenses | -42,251,541.59 | -40,815,354.68 | -3.52% | |
| Income tax expenses | 218,895,998.85 | 319,256,554.10 | -31.44% | Mainly due to the decrease of total profits and comprehensive income tax rate during the reporting period. |
| R&D investment | 174,383,802.42 | 194,481,803.42 | -10.33% | |
| Net cash flows from operating activities | 555,040,511.12 | 1,308,844,866.33 | -57.59% | Mainly due to the decrease in cash received from selling goods and rendering of services in the cash inflow from operating activities during the reporting period. |
| Net cash flows from investing activities | 1,087,172,418.94 | 883,025,051.67 | 23.12% | |
| Net cash flows from financing activities | -2,702,496,787.61 | -1,639,170,531.90 | -64.87% | Mainly due to the increase in dividend payments for 2022 Fiscal Year during the reporting period. |
| Net increase in cash and cash equivalents | -1,051,713,681.08 | 564,870,879.41 | -286.19% | Mainly due to the increase in cash outflow from financing 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 | 9,982,616,440.73 | 100% | 10,323,979,744.82 | 100% | -3.31% |
| By industry | |||||
| Cookware | 2,516,239,088.69 | 25.21% | 3,066,665,527.99 | 29.70% | -17.95% |
| Electric appliance | 7,342,682,261.73 | 73.55% | 7,174,700,594.40 | 69.50% | 2.34% |
| Others | 123,695,090.31 | 1.24% | 82,613,622.43 | 0.80% | 49.73% |
| By products | |||||
| Cookware and utensil | 2,516,239,088.69 | 25.21% | 3,066,665,527.99 | 29.70% | -17.95% |
| Electrical cooking | 4,495,040,148.58 | 45.03% | 4,588,882,638.90 | 44.45% | -2.04% |
| Food processor appliance | 1,691,379,401.26 | 16.94% | 1,568,135,937.20 | 15.19% | 7.86% |
| Other household electric appliances | 1,279,957,802.20 | 12.82% | 1,100,295,640.73 | 10.66% | 16.33% |
| By areas | |||||
| Domestic sales | 7,501,764,475.40 | 75.15% | 7,457,451,182.53 | 72.23% | 0.59% |
| Export sales | 2,480,851,965.33 | 24.85% | 2,866,528,562.29 | 27.77% | -13.45% |
Remarks: "Others" by industry, "Other household electric appliances" by product, and region-based mode exceptionally include otherbusiness 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 | 2,516,239,088.69 | 1,823,288,506.30 | 27.54% | -17.95% | -18.49% | 0.48% |
| Electric appliance | 7,342,682,261.73 | 5,518,600,260.43 | 24.84% | 2.34% | 2.67% | -0.24% |
| By products | ||||||
| Cookware and utensil | 2,516,239,088.69 | 1,823,288,506.30 | 27.54% | -17.95% | -18.49% | 0.48% |
| Electrical cooking | 4,495,040,148.58 | 3,382,134,133.22 | 24.76% | -2.04% | -0.94% | -0.84% |
| Food processor appliance | 1,691,379,401.26 | 1,336,989,391.45 | 20.95% | 7.86% | 7.43% | 0.32% |
| Other household electric appliances | 1,279,957,802.20 | 902,417,225.74 | 29.50% | 16.33% | 16.48% | -0.09% |
| By areas | ||||||
| Domestic sales | 7,501,764,475.40 | 5,371,477,113.45 | 28.40% | 0.59% | 1.95% | -0.95% |
| Export sales | 2,480,851,965.33 | 2,073,352,143.26 | 16.43% | -13.45% | -13.67% | 0.21% |
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 | 1,859,681,088.15 | 17.66% | 3,563,140,907.75 | 27.51% | -9.85% | Mainly due to the increase in dividend expenditure in cash outflow of the Company's financing activities during the reporting period. |
| Accounts receivable | 2,253,001,396.06 | 21.39% | 1,926,518,118.38 | 14.87% | 6.52% | Mainly due to the increase in accounts receivable of export business at the end of the reporting period. |
| Inventories | 1,937,374,529.58 | 18.39% | 2,494,922,856.42 | 19.26% | -0.87% | No significant change during the reporting period. |
| Long-term equity investment | 61,763,872.57 | 0.59% | 62,196,139.53 | 0.48% | 0.11% | No significant change during the reporting period. |
| Fixed assets | 1,252,394,688.18 | 11.89% | 1,303,075,391.03 | 10.06% | 1.83% | Mainly due to the increase in depreciation of fixed assets during the reporting period. |
| Construction in progress | 16,386,809.27 | 0.16% | 12,005,654.73 | 0.09% | 0.07% | No significant change during the reporting period. |
| Right-of-use assets | 189,573,789.61 | 1.80% | 190,718,962.82 | 1.47% | 0.33% | No significant change during the reporting period. |
| Contract liabilities | 480,254,227.80 | 4.56% | 1,153,932,879.53 | 8.91% | -4.35% | Mainly due to the decrease in advance payments from some distributors by subsidiaries during the reporting period. |
| Lease obligation | 142,355,428.33 | 1.35% | 150,779,916.58 | 1.16% | 0.19% | No significant change during the reporting period. |
| Non-current assets due within one year | 303,175,671.23 | 2.88% | 32,157,534.25 | 0.25% | 2.63% | Mainly due to the increase in negotiable certificates of deposit due within 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) | 431,382,527.79 | 7,299,684.69 | 250,000,000.00 | 438,553,109.35 | 250,129,103.13 | |||
| 2. Receivables financing | 235,957,044.34 | 2,216,303.31 | 238,173,347.65 | |||||
| 3. Other debt investments | 1,056,952,424.68 | 195,610,561.63 | 167,788,701.68 | 18,450,770.17 | 1,103,225,054.80 | |||
| Total | 1,724,291,996.81 | 7,299,684.69 | 445,610,561.63 | 606,341,811.03 | 20,667,073.48 | 1,591,527,505.58 | ||
| 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 business modeof related bank acceptance bill including not only collect contractual cash flow but sales as the target, so reclass the bank acceptancebill as financial assets measured at the fair value with their changes included into other comprehensive incomes.Debt investment: The business mode of negotiable certificates of deposit including collecting contractual cash flow and selling thenegotiable certificates of deposit as the target, so reclass the negotiable certificates of deposit as financial assets measured at the fairvalue with their changes included into other comprehensive incomes. Interest revenue is accrued according to the actual interest rateduring 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. 53. "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 | 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 balance | Proportion of investment amount at the end of the period in the Company's net assets at the end of the reporting period |
| Bank - foreign exchange derivative instruments | 4,744.22 | -98.00 | 0 | 25,098.58 | 19,454.76 | 10,388.04 | 1.96% |
| Total | 4,744.22 | -98.00 | 0 | 25,098.58 | 19,454.76 | 10,388.04 | 1.96% |
| 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 change compared to the previous reporting period. | ||||||
| Explanation on realized profit and loss 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-980,000 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 derivative 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 foreign exchange derivative transaction, 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 derivative 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 by the Board of Directors of derivative investment (if any) | March 31, 2023 |
| The disclosure date of approval announcement | Not applicable |
| by the General Meeting of Shareholders of derivative investment (if any) | |
| Special opinions on situations of the Company's derivative investment and risk control issued by independent directors | The independent directors have released the independent opinions about the Proposal for Implementation of the Foreign Exchange Derivative Transaction Business of the Company, the details of which are shown in the Independent Opinion of Independent Directors on Relevant Matters disclosed in http://www.cninfo.com.cn on March 31, 2023. |
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 | RMB 91.16 million | 1,147,135,495.74 | 325,799,928.23 | 1,452,022,706.38 | -2,742,722.02 | -1,173,534.01 |
| Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd. | Subsidiary | Electrical products | RMB 133.6971 million | 1,240,090,483.07 | 416,842,000.93 | 1,853,742,874.95 | 46,996,102.71 | 39,695,390.58 |
| Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. | Subsidiary | Small domestic appliance, kitchen appliance | RMB 610 million | 2,973,785,711.72 | 2,322,451,716.80 | 3,013,987,403.33 | 494,013,449.81 | 420,424,459.45 |
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
In the first quarter of 2023, the consumer services sector enjoyed resilient growth, while retail demand for cookware and kitchenappliances was relatively subdued. With the promulgation of a series of policies and measures in China to promote the growth ofconsumption, the sales of home appliances improved sequentially in the second quarter, and demand for home appliances in the secondhalf of the year is expected to be gradually boosted. Faced with the possible macroeconomic fluctuation risks, Supor will continuouslyadhere to established strategies, actively develop new categories and new businesses, expand market segments and foster new growthpoints.In terms of exports, with the rebound in demand generated by the European and American markets after the de-stocking, it isexpected that the export business will continue to improve in the second half of the year, and the Company will cooperate with itsexport customers to promote R&D of new product, efficiency improvements, cost reductions, and to enhance the competitiveness ofthe Company's export business.
2. Risk from raw material price fluctuations
In the first half of 2023, the prices of main raw materials for cookware and small domestic appliances such as aluminum, copper,stainless steel, and plastics declined and stabilized, which is beneficial for reducing production costs for industry enterprises. Suporwill continue to implement lean cost projects and improve internal productivity as to enhance the cost competitiveness of theCompany’s domestic and export business. Meanwhile, the Company is actively boosting the reasonable automation of production line,improving the per capita labor output, and to reduce the impact caused by rise in labor cost.
3. Risk of intensifying market competitiveness
With the hierarchization of consumption in terms of cookware and home appliance market, high-end brands continue to engage inchannel penetration and adjust their product and pricing strategies in order to seize more market share, while an increasing number ofsupply chain brands are reaching out to consumers through various e-commerce platforms and gaining a certain amount of sales volumeby relying on their relatively low prices, which has led to intensified market competition in the cookware and small domestic applianceindustry.
The Company will continue to adhere to its strategy centered on product innovation and launch higher value-added and high-margin products to gain leading sales and market share in the mid-to-high price segments by continuously enhancing its innovationcapabilities. Meanwhile, the Company is also increasing the distribution of hot-selling products appropriately, giving full play to theCompany's comprehensive competitive advantages of multi-brand and multi-category, and continuously investing in marketingresources in order to increase its market share.
4. Product export and exchange loss caused by exchange rate fluctuation
Recent exchange rate fluctuations may adversely affect export.
The Company's export business with its major export customer, SEB Group, has been settled in RMB, with low exchange rate risk.
SECTION IV CORPORATION GOVERNANCEI. General Meetings of Shareholders and Interim General Meeting of Shareholders Heldduring the Reporting Period
1. General meetings of shareholders during the reporting period
| Session | Meeting type | Participation ratio | Convening date | Date of disclosure | Meeting resolution |
| First Interim General Meeting of Shareholders 2023 | Interim General Meeting of Shareholders | 8.55% | January 19, 2023 | January 20, 2023 | See Announcement on Resolutions of the First Interim General Meeting of Shareholders 2023 (Announcement No.: 2023-007) disclosed on http://www.cninfo.com.cn for details |
| Annual General Meeting of Shareholders for 2022 Fiscal Year | Annual General Meeting of Shareholders | 8.04% | April 25, 2023 | April 26, 2023 | See Announcement on Resolutions of the Annual General Meeting of Shareholders for 2022 Fiscal Year (Announcement No.: 2023-041) 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 ExecutivesDuring the reporting period, the Company elected the Eighth Board of Directors and the Eighth Board of Supervisors. The 1
st
Sessionof the Eighth Board of Directors and the 1
st
Session of the Eighth Board of Supervisors were held on April 26, 2023 to select BoardChairman and Chairman of the Board of Supervisors respectively. The General Manager, Chief Financial Officer, Board Secretary werealso appointed during the meeting. The Company directors, supervisors and senior executives did not change within the reportingperiod. As for details, please see 2022 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) About the 2021 Equity Incentive Plan
On August 30, 2022, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at 14
th
Session of the Seventh Board of Directors and the 13
thSession of the Seventh Board of Supervisors. For disqualification of 13 incentiveobjects due to their resignation, the Company decided to repurchase and cancel 53,000 shares of restricted stock. In addition, on March29, 2023, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at 19
th
Session of theSeventh Board of Directors and the 18
thSession of the Seventh Board of Supervisors. For the disqualification of 4 incentive objectsdue to their resignation, the Company decided to repurchase and cancel 21,000 shares of restricted stock. The Proposal onRepurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at the Annual General Meeting of Shareholders for2022 Fiscal Year held on April 25, 2023. The Company repurchased and canceled 74,000 shares of restricted stock of 2021 EquityIncentive Plan at the price of RMB 1 per share and paid totally RMB 74,000 to above resigned incentive objects. After confirmed byShenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completed repurchase andcancellation on June 29, 2023.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, SecuritiesDaily, and http://www.cninfo.com.cn on August 31, 2022, March 31, 2023 and June 30, 2023 (Announcement No.: 2022-050, 2023-026 and 2023-052).(II) About the 2022 Equity Incentive Plan
1. On January 31, 2023, the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects was reviewed andadopted at the 18
th Session of the Seventh Board of Directors and the 17
th
Session of the Seventh Board of Supervisors. The Companyplanned to grant a total of 79,000 shares of postponed portion of restricted stock to 2 incentive objects. The Company completed theregistration of restricted stock grants on February 24, 2023.
For detailed contents, see Announcement of Grant of Postponed Portion of Restricted Stock to Incentive Objects and theAnnouncement of Completion of Registration for Grant of Postponed Portion of Restricted Stock of 2022 disclosed on Securities Times,China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on February 2, 2023 and February 27, 2023 (AnnouncementNo.: 2023-011 and 2023-015).
2. On March 29, 2023, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at the
th Session of the Seventh Board of Directors and the 18
thSession of the Seventh Board of Supervisors. For the disqualification of 2incentive objects due to their resignation, the Company decided to repurchase and cancel 1,750 shares of restricted stock. The Proposalon Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at the Annual General Meeting of Shareholdersfor 2022 Fiscal Year held on April 25, 2023. The Company repurchased and canceled 1,750 shares of restricted stock of 2022 EquityIncentive Plan at the price of RMB 1 per share and paid totally RMB 1,750 to above resigned incentive objects. After confirmed by
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completed repurchase andcancellation on June 29, 2023.
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, SecuritiesDaily, and http://www.cninfo.com.cn on March 31, 2023 and June 30, 2023 (Announcement No.: 2023-026 and 2023-052).
2. Implementation of the employee stock holding plan
□ Applicable ? Not-applicable
3. Other employee incentive measures
□ Applicable ? Not-applicable
SECTION V SOCIAL AND ENVIRONMENTAL
RESPONSIBILITIESI. Major Environmental Issues
Do 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 for pollutantsdischarge, the environmental impact assessment documents of construction projects and their administrative licenses, and therequirements in national environment monitoring technical specifications, the Company has improved its self-monitoring scheme,which needs to be put on record by the competent department for ecological environment under its jurisdiction.Administrative permissions for environmental protectionAccording to the relevant system records, the Company and its subsidiaries have obtained pollution discharge permits asfollows:
| Name of the Company or subsidiary | Completion date | Valid period |
| The Company | July 4, 2023 | From June 30, 2023 to June 29, 2028 |
| Zhejiang Supor Electrical | June 25, 2023 | From August 25, 2020 to August 24, 2025 |
| Shaoxing Supor | July 10, 2023 | From July 10, 2023 to July 9, 2028 |
| Wuhan Supor Cookware | April 12, 2022 | From September 11, 2020 to September 10, 2023 |
| 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 | COD | Indirect discharge | 1 | Wastewater discharge port of the wastewater station in plant area | 30mg/L | Integrated Wastewater Discharge Standard (GB8978-1996) | 2.21t | 8.662t/a | / |
| Ammoniacal nitrogen | 1.5mg/L | Indirect Discharge for Emission Limitation of Nitrogen and Phosphorus for Industrial Wastewater (DB33/887-2013) | 0.11t | 0.433t/a | / | |||||
| Air pollutants | Sulfur Dioxide | Organized emission | 39 | Workshops 1#, 2# and 6# | ＜200 mg/m? | Emission Standard of Air Pollutants for Industrial Surface Coating | 0.38t | 3.06t/a | / |
| (DB33/2146-2018); Integrated Emission Standard of Air Pollutants (GB16297-1996); Emission Standards of Air Pollutants for Industrial Kiln and Furnace (GB9078-1996) | ||||||||||
| Nitrogen Oxide | ＜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) | 3.56t | 14.66t/a | / | |||||
| Zhejiang Supor Electrical | Water pollutants | COD | Indirect discharge | 1 | General outlets of wastewater (DW001) | 10 mg/l | Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (DB 33/2169-2018) | 0.492 t | 14.6 t/a | / |
| Ammoniacal nitrogen | 0.08 mg/l | Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (DB 33/2169-2018) | 0.004 t | 0.73 t/a | / | |||||
| Total nitrogen (calculated in N) | 5.185mg/l | Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (DB 33/2169-2018) | 0.2252 t | 2.667 t/a | / | |||||
| Shaoxing Supor | Water pollutants | COD | Indirect discharge | 1 | Wastewater discharge port of the wastewater station in plant area | 120.65mg/L | Integrated Wastewater Discharge Standard (GB8978-1996) | 40.229492t | 224.657t/a | / |
| Ammoniacal nitrogen | 6.73mg/L | Indirect Discharge for Emission Limitation of Nitrogen and Phosphorus for Industrial Wastewater (DB33/887-2013) | 2.24299t | 9.363t/a | / | |||||
| Total nitrogen (calculated | 19.03mg/L | Wastewater Quality Standards for Discharge to | 6.345136t | 33.447t/a | / |
| in N) | Municipal Sewers (GB/T 31962-2015) | |||||||||
| Wuhan Supor Cookware | Water pollutants | COD | Intermittent discharge, whose flow rate is neither stable nor regular, but it's not an impulsive discharge | 1 | Wastewater discharge port of the wastewater station in plant area | 16.52mg/L | Integrated Wastewater Discharge Standard (GB8978-1996) | 3.685t | 19.38t/a | / |
| Ammoniacal nitrogen | 0.67mg/L | Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) | 0.146t | 1.94t/a | / | |||||
| Air pollutants | VoCs | Organized emission | 1 | Spray waste gas treatment discharge port | 2.39mg/m? | Integrated Emission Standard of Air Pollutants (GB16297-1996) | 1.369t | 12.16t/a | / |
Treatment of pollutantsUnder 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 watertreatment plan according to water quality. The production wastewater is first treated at the sewage treatment station and then disposedthrough the reclaimed water system for production. After that, part of the sanitary sewage after combined treatment enters municipalsewage 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 filter dustcollector, activated carbon adsorption, UV photolysis purification, desorption and catalytic combustion and other combined treatments.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, the Companydid not exceed the standard discharge, and met the relevant requirements of the competent department for ecological environment.Environmental emergency plan
The Company has completed the emergency plan for environmental emergencies and conducted regular emergency drills.Environmental governance and protection input and payment of environmental protection tax
During the reporting period, the Company's total investment in environmental governance and protection was RMB 17.82 million,including RMB 0.025 million of environmental protection tax.Environmental monitoring scheme
The 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 period
None
Other environmental information that shall be made public
NoneMeasures and effects taken to reduce carbon emissions during the reporting period
□ Applicable ? Not-applicable
Other environmental protection related information
NoneII. Social Responsibilities
During the reporting period, the Company actively supported the national rural revitalization and common prosperity policies.Adhering to its vision and mission, the Company embraced the philanthropic principle of "sharing a better life with each child". Whileactively providing funds to improve basic education conditions in the central and western mountainous areas, the Company alsoleveraged its industrial and resource advantages to support life education in urban and rural schools. The Company, families, andschools have worked together to cultivate a new generation of youth who are forward-looking, love life, and care for their families.
In 2023, the Company continued to operate the "Supor Primary School" project and invested more in the life function of the ruralschool. Currently, Supor has donated 28 rural schools in the central and western regions and plans to expand with a focus on improvingthe living conditions of boarding schools in towns and villages. At present, 14 Supor primary schools have introduced online live-streaming art and foreign language courses of U-light, so that rural students can also enjoy top-quality education.
The Company's new public welfare project "Supor – Little Artist of Life" is also supporting the improvement of urban and ruralschool literacy education. At present, the Company has established cooperative relations with more than 10 urban and rural schools inHangzhou City, Shaoxing City, Lishui City, Xingyi City and other places to support these schools in building life education space,carrying out labor classes, and building schools featuring life literacy education.
Supor employees also took an active part in public welfare. They sent letters and gifts to the children in the disaster areas in HenanProvince to give them warmth and encouragement. Employee volunteers of the Company made a special trip to Henan on Children'sDay, bringing companionship and joy to the children.
In the future, the Company will actively support the national policies of rural revitalization and common prosperity, give full playto the advantages of Supor's business capabilities and resources, promote various charity programs and activities in terms of literacyeducation for children in rural villages and broadening their horizons, and work with more like-minded charity partners to contributeto 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 | Person | 6,000 |
| Investment amounts for improving the education resources in rural areas | RMB 10,000 | 60 |
Awards received (content, grade)
| Awards received (content, grade) | —— | —— |
| One of 100 Companies of CCTV ESG Pioneers | ||
| Zhejiang Province Corporate Social Responsibility Outstanding Report Award |
SECTION VI SIGNIFICANT EVENTSI. Commitments Fulfilled during the Reporting Period and Unfulfilled till the End of ReportingPeriod by Actual Controllers, Shareholders, Related Parties, Acquirers and Other CommitmentParties of the Company
□ Applicable ? Not-applicable
There were no commitments fulfilled during the reporting period and unfulfilled till the end of reporting period by actual controllers,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-standardAudit 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 Matters
Significant 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
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 (RMB 10,000) | 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 | - | 6,362.51 | 1.02% | No | Bank transfer or notes | - | |||
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise | Purchase of commodity | Accessories | Market price | - | 2,562.67 | 0.41% | No | Bank transfer or notes | - | |||
| GROUPE SEB EXPORT | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 115.20 | 0.02% | No | Bank transfer or notes | - | |||
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 473.73 | 0.08% | No | Bank transfer or notes | - | |||
| LAGOSTINA S.P.A. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 39.36 | 0.01% | No | Bank transfer or notes | - | |||
| SEB INTERNATIONAL | Same controlling shareholder | Purchase of commodity | Accessories | Market price | - | 8.41 | 0.00% | No | Bank transfer or notes | - |
| SERVICE S.A.S. | with the controlling shareholder | ||||||||||||
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 1.28 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB MOULINEX | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 108.09 | 0.02% | No | Bank transfer or notes | - | |||
| SEB ASIA LTD. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 4.33 | 0.00% | No | Bank transfer or notes | - | |||
| WMF GROUPE GMBH | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 3,232.80 | 0.52% | No | Bank transfer or notes | - | |||
| Emsa Taicang Co., Ltd. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 23.50 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB KOREA, LTD | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 7.29 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB THAILAND | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 18.29 | 0.00% | No | Bank transfer or notes | - | |||
| SEB Professional (Shanghai) Co., Ltd. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 0.03 | 0.00% | No | Bank transfer or notes | - | |||
| Wmf (heshan) Manufacturing Company Limited | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 11.70 | 0.00% | No | Bank transfer or notes | - | |||
| SEB ASIA LTD. | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 231,796.81 | 23.22% | No | Bank transfer or notes | - | |||
| SEB ASIA LTD. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 544.43 | 0.05% | No | Bank transfer or notes | - | |||
| S.A.S. SEB | Same controlling shareholder with the controlling shareholder | Sale of commodities | Finished products | Contract price | - | 713.42 | 0.07% | No | Bank transfer or notes | - | |||
| S.A.S. SEB | Same controlling shareholder with the controlling shareholder | Sale of commodities | Accessories | Contract price | - | 23.91 | 0.00% | No | Bank transfer or notes | - | |||
| TEFAL S.A.S. | Same | Sale of | Finished | Contract | - | 129.59 | 0.01% | No | Bank | - |
| controlling shareholder with the controlling shareholder | commodities | products | price | transfer or notes | |||||||||
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder | Sale of commodities | Accessories | Contract price | - | 935.48 | 0.09% | No | Bank transfer or notes | - | |||
| GROUPE SEB MOULINEX | Same controlling shareholder with the controlling shareholder | Sale of commodities | Finished products | Contract price | - | 639.30 | 0.06% | No | Bank transfer or notes | - | |||
| Supor Group Co., Ltd. | Company controlled by related natural person | Sale of commodities | Finished products | Market price | - | 746.21 | 0.07% | No | Bank transfer or notes | - | |||
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | Company controlled by related natural person | Sale of commodities | Finished products | Market price | - | 77.81 | 0.01% | No | Bank transfer or notes | - | |||
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1,178.10 | 0.12% | No | Bank transfer or notes | - | |||
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise | Sale of commodities | Accessories | Contract price | - | 1.50 | 0.00% | No | Bank transfer or notes | - | |||
| LAGOSTINA S.P.A. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 12.91 | 0.00% | No | Bank transfer or notes | - | |||
| IMUSA USA LLC | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 516.29 | 0.05% | No | Bank transfer or notes | - | |||
| IMUSA USA LLC | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 2.14 | 0.00% | No | Bank transfer or notes | - | |||
| SEB Professional (Shanghai) Co., Ltd. | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 10.82 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 482.26 | 0.05% | No | Bank transfer or notes | - | |||
| GROUPE SEB | Same controlling | Sale of commoditie | Finished products | Contract price | - | 466.99 | 0.05% | No | Bank transfer or | - |
| CANADA | shareholder | s | notes | ||||||||||
| GROUPE SEB ANDEAN S.A. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 23.55 | 0.00% | No | Bank transfer or notes | - | |||
| Total | -- | -- | 251,270.71 | -- | -- | -- | -- | -- | -- | ||||
| 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, 2023, the actual amount of daily related transactions between the Company and SEB Group reached RMB 2,415.20 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 their relatedparties.
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 "26. Lease obligation" of Part VII "Notes to Items of Consolidated Financial Statements"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 were no leasing items that brought 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 | December 14, 2021 | 140,000 | July 2022 - August 2022 | 12,638.78 | General guarantee and pledge | Cash | Yes | July 2022 - February 2023 | Yes | No |
| Supor's distributors who meet certain conditions | August 31, 2022 | 140,000 | September 2022 - April 2023 | 58,788.94 | General guarantee and pledge | Cash | Yes | September 2022 - October 2023 | No | No |
| Supor's | March 31, | 140,000 | May 2023 - | 6,364.54 | General | Cash | Yes | May 2023 | No | No |
| distributors who meet certain conditions | 2023 | June 2023 | guarantee and pledge | - December 2023 | ||||||
| Total external guaranteed amount approved during the reporting period (A1) | 140,000 | Total actual amount of external guarantee during the reporting period (A2) | 77,792.26 | |||||||
| Total external guaranteed amount approved at the end of the reporting period (A3) | 280,000 | Total actual external guarantee balance at the end of the reporting period (A4) | 27,927.36 | |||||||
| 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. | April 1, 2022 | 270,000 | July 2022 - December 2022 | 67,550.55 | General guarantee | None | None | July 2022 - June 2023 | Yes | No |
| Wuhan Supor Cookware Co., Ltd. | April 1, 2022 | 20,000 | September 2022 - December 2022 | 3,315 | General guarantee | None | None | September 2022 - June 2023 | Yes | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | April 1, 2022 | 270,000 | January 2023 - April 2023 | 28,868.88 | General guarantee | None | None | January 2023 - October 2023 | No | No |
| Wuhan Supor Cookware Co., Ltd. | April 1, 2022 | 20,000 | January 2023 - April 2023 | 1,890 | General guarantee | None | None | January 2023 - October 2023 | No | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | March 31, 2023 | 260,000 | May 2023 - June 2023 | 51,597 | General guarantee | None | None | May 2023 - December 2023 | No | No |
| Wuhan Supor Cookware Co., Ltd. | March 31, 2023 | 30,000 | May 2023 - June 2023 | 1,810 | General guarantee | None | None | May 2023 - December 2023 | No | No |
| Approved total guaranteed amount towards the subsidiaries during the reporting period (B1) | 400,000 | Total actual amount of guarantee to subsidiaries during the reporting period (B2) | 155,031.43 | |||||||
| Total guaranteed amounts to subsidiaries approved at the end of | 700,000 | Total actual guarantee balance for subsidiaries at the end | 84,165.88 | |||||||
| the reporting period (B3) | of the reporting period (B4) | |||||||||
| 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. | April 1, 2022 | 270,000 | July 2022 - December 2022 | 11,900 | General guarantee | None | None | July 2022 - June 2023 | Yes | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | April 1, 2022 | 270,000 | January 2023 - April 2023 | 13,580 | General guarantee | None | None | January 2023 - October 2023 | 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) | 25,480 | |||||||
| 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) | 13,580 | |||||||
| 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 | Total guaranteed actual amount during the reporting period (A2+B2+C2) | 258,303.69 | |||||||
| Total approved guaranteed amount at the end of the reporting period (A3+B3+C3) | 980,000 | Total actual guarantee balance at the end of the reporting period (A4+B4+C4) | 125,673.24 | |||||||
| Proportion of the total amount of actual guarantee (i.e. A4+B4+C4) to the net assets of the Company | 23.75% | |||||||||
| 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) | 97,745.88 | |||||||||
| Amount of the total guarantee exceeding 50% of the net assets (F) | 0 | |||||||||
| Total amount of the above three guarantees (D+E+F) | 97,745.88 | |||||||||
| Description of the guarantee liability occurred | None | |||||||||
| 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) | |
| Explanation on external guarantee provided against the established procedures (if any) | None |
Note: The 19
thSession of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2022 Fiscal Year of theCompany reviewed and adopted the Proposal on Guarantee for Wholly-owned Subsidiaries and Mutual Guarantee among Wholly-owned Subsidiaries, and agreed that the Company and its wholly-owned subsidiaries would provide guarantees up to RMB 4 billionfor the wholly-owned subsidiaries in the year of 2023. Among them, the guaranteed amount for companies with higher than 70%(inclusive) asset-liability ratio over was RMB 3 billion, and for companies with an asset-liability ratio below 70% was RMB 1 billion.
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 | 43,000 | 20,000 | 0 | 0 |
| Financial products of securities trader | Self-owned capital | 5,000 | 5,000 | 0 | 0 |
| Total | 48,000 | 25,000 | 0 | 0 | |
During the reporting period, financial products purchased and the principal and income recovered are as follows:
Details about the short-term financial products newly-purchased within first half year of 2023 can be found in the Announcement ofProgress of Using Excessive Cash to Purchase Financial Products (Announcement No.: 2023-006), the Announcement of Short-termInvestment Using Excessive Cash (Announcement No.: 2023-022) and the Announcement of Progress of Using Excessive Cash toPurchase Financial Products (Announcement No.: 2023-054) released 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 SHAREHOLDERS
I. 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 | 3,110,073 | 0.38% | -145,463 | -145,463 | 2,964,610 | 0.37% | |||
| 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 | 3,110,073 | 0.38% | -145,463 | -145,463 | 2,964,610 | 0.37% | |||
| Including: Shares held by domestic legal entities | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| Shares held by domestic natural persons | 3,110,073 | 0.38% | -145,463 | -145,463 | 2,964,610 | 0.37% | |||
| 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 | 805,544,403 | 99.62% | -1,800,356 | -1,800,356 | 803,744,047 | 99.63% | |||
| 1. Common shares in RMB | 805,544,403 | 99.62% | -1,800,356 | -1,800,356 | 803,744,047 | 99.63% | |||
| 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 | 808,654,476 | 100.00% | -1,945,819 | -1,945,819 | 806,708,657 | 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 24, 2023, a total of 79,000 shares of restricted stock of postponed portion of the 2022 Restricted Stock Incentive Planwere transferred to 2 incentive objects.
3. On April 10, 2023, the Company cancelled a total of 1,870,069 repurchased public shares. Upon the cancellation, the Company'stotal share capital decreased from 808,654,476 to 806,784,407 shares.
4. On June 29, 2023, totally 75,750 shares of restricted stock that have been granted to resigned incentive objects but have not beenunlocked from restriction in 2021 and 2022 Restricted Stock Incentive Plans were repurchased and cancelled by the Company. Uponthe repurchase and cancellation, the Company's total share capital decreased from 806,784,407 shares to 806,708,657 shares.Approval of change in shares?Applicable □ Not-applicable
1. On January 31, 2023, the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects was reviewed and adoptedat the 18
th Session of the Seventh Board of Directors and the 17
th
Session of the Seventh Board of Supervisors, the Company agreed togrant a total of 79,000 shares of postponed portion of restricted stocks to two incentive objects. The grant date was February 1, 2023.After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the postponed portion ofrestricted stocks in the Company's 2022 Restricted Stock Incentive Plan were transferred and registered under the name of two incentiveobjects on February 24, 2023.
2. On March 29, 2023, the Proposal on Terminating the Public Shares Repurchase Plan was reviewed and adopted at the 19
th
Sessionof the Seventh Board of Directors and the 18
thSession of the Seventh Board of Supervisors of the Company, the Company plans tocancel 1,870,069 shares held in the Company’s special stock repurchase account to reduce registered capital as authorized by theAnnual General Meeting of Shareholders for 2021 Fiscal Year. After confirmed by Shenzhen Branch of China Securities Depositoryand Clearing Corporation Limited, the Company completed the cancellation of the above shares on April 10, 2023.
3. On August 30, 2022 and on March 29, 2023, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewedand adopted respectively at the 14
th Session of the Seventh Board of Directors and the 13
thSession of the Seventh Board of Supervisorsand the 19
th
Session of the Seventh Board of Directors and the 18
thSession of the Seventh Board of Supervisors. For the disqualificationof 18 incentive objects due to their resignation, the Company has decided to repurchase and cancel 75,750 shares of restricted stock atthe price of RMB 1 per share. The above matter of repurchase and cancellation of restricted stocks has been deliberated and approvedat the Annual General Meeting of Shareholders for 2022 Fiscal Year held on April 25, 2023. The Company has repurchased andcanceled 75,750 shares of restricted stock at the price of RMB 1 per share and paid totally RMB 75,750 to the above resigned incentiveobjects. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Companycompleted the above matter of repurchase and cancellation of restricted stocks on June 29, 2023.Transfer of shares changed?Applicable □ Not-applicableAfter confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, totally 79,000 shares ofpostponed portion of restricted stocks under the Company's 2022 Restricted Stock Incentive Plan, were transferred and registered underthe name of two incentive objects on February 24, 2023.Progress in the implementation of share repurchase?Applicable □ Not-applicable(I) Public Shares Repurchase Plan 2022
On March 31, 2022, the Proposal on Public Shares Repurchase Plan was reviewed and adopted at the 12
th
Session of the SeventhBoard of Directors and the Annual General Meeting of Shareholders for 2021 Fiscal Year held on April 25, 2022. The Companyrepurchased its own shares from the secondary market through concentrated bidding transactions. The maximum price was not higherthan RMB 54.78/share, and the bottom limitation of shares to be repurchased was not lower than 8,086,785 (inclusive), and the top
limitation of shares was not exceeding 16,173,570 shares (inclusive). Among which, 3,000,000 shares were intended for the futureimplementation of equity incentive, and the remaining shares will be cancelled to reduce the registered capital. From May 6, 2022,when the share repurchase scheme was first implemented, to February 8, 2023, totally 4,870,069 shares of the Company wererepurchased through centralized bidding transactions by special securities account, accounting for 0.60% of the Company's total sharecapital. 1,253,500 and 79,000 shares of them were respectively transferred and registered under the name of incentive objects involvedin the 2022 Restricted Stock Incentive Plan on November 10, 2022 and February 24, 2023.As the stock price in February and March continuously exceeded the maximum repurchase price disclosed in the share repurchaseplan and the validity period of the shares repurchase plan was about to expire, the Company comprehensively considered the actualsituations of the market and its own and deliberated and approved the Proposal on Terminating the Public Shares Repurchase Plan atthe 19th
Session of the Seventh Board of Directors held on March 29, 2023. It decided to terminate the implementation of the above-mentioned public shares repurchase plan. On April 10, 2023, based on the authorization of the Annual General Meeting of Shareholdersfor 2021 Fiscal Year, the Company cancelled 1,870,069 shares in the special securities account for repurchase and reduced its registeredcapital. After that, the total share capital of it decreased from 808,654,476 to 806,784,407 shares. The remaining 1,667,500 shares willbe used for implementing future equity incentive plans, and if the Company fails to do so within three years after the termination ofthe Public Shares Repurchase Plan, those repurchased shares will be cancelled accordingly. Before completion of cancellations andimplementation of equity incentive plans, the repurchased shares are deposited in the Company’s special stock repurchase account.Above repurchased shares are not entitled to profit distribution, capitalization of provident fund, issuance of new shares and allotmentof shares, pledge, voting rights at shareholders' meetings and other related rights.For detailed contents, see Announcement on Completion of Cancellation of Repurchased Shares from Public Shares RepurchasePlan (Announcement No.: 2023-038) disclosed on Securities Times, China Securities Journal, Securities Daily, andhttp://www.cninfo.com.cn on April 12, 2023.(II) Public Shares Repurchase Plan 2023On March 29, 2023, the Proposal on Public Shares Repurchase Plan was reviewed and adopted at the 19
thSession of the SeventhBoard of Directors. The Company repurchased its own shares from the secondary market through centralized bidding transactions. Themaximum price was not higher than RMB 63.95/share (which has been adjusted to RMB 60.93/share now after the implementation ofProfit Distribution Plan for 2022 Fiscal Year), and the bottom limitation of shares to be repurchased was not lower than 8,067,087(inclusive), and the top limitation of shares was not exceeding 16,134,174 shares (inclusive). The period for the repurchase of sharesshould not exceed twelve months from the date when the proposal was deliberated and approved by the General Meeting ofShareholders. The Company initially implemented this shares repurchase plan on June 2, 2023. At the end of this reporting period, theCompany actually repurchased 3,160,000 shares, accounting for 0.39% of the Company's total share capital. The highest transactionprice was RMB 51.20/share, the lowest one was RMB 44.37/share, and the total amount paid was RMB 150,244,900 (excludingtransaction costs). As of the disclosure date of this report, the actual number of repurchased shares by the Company was 6,700,000,accounting for 0.83% of the Company's total share capital. The highest transaction price was RMB 52.79/share, the lowest one wasRMB 44.37/share, and the total amount paid was RMB 330,224,600 (excluding transaction costs).The above matter of share repurchase was reviewed and adopted in Annual General Meeting of Shareholders for 2022 FiscalYear of the Company held on April 25, 2023, and the Repurchase Report on Public Shares was disclosed on April 26, 2023. For details,please refer to the Repurchase Report on Public Shares (Announcement No.: 2023-044), Announcement on Adjusting Share Price forPublic Shares Repurchase Plan (Announcement No.: 2023-049), Announcement of Initial Repurchase of Public Shares(Announcement No.: 2023-051), and Announcement of Progress of Public Shares Repurchase Plan (Announcement No.: 2023-050,2023-053, 2023-057 and 2023-059) disclosed on Securities Times, China Securities Journal, Securities Daily, andhttp://www.cninfo.com.cn.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 the latest year and period, net assets per shareattributable to the Company's common shareholders and other financial indicators.?Applicable □ Not-applicableSince tiny influence on basic earnings per share and diluted earnings per share, 1,945,819 public shares and restricted stocksrepurchased and cancelled in the current period generate no effect on other financial indicators (e.g. net assets per share attributable tothe 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 | 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 | 364,602 | 91,151 | 0 | 273,451 | 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 | 130,303 | 43,826 | 0 | 86,477 | Locked stocks of top management | Unlocked 25% of the shares registered under their names based on holding shares at on the last transaction date of the last year |
| Ye Jide | 39,143 | 14,786 | 0 | 24,357 | 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 |
| Su Ming-Jui | 137,025 | 2,925 | 3,975 | 138,075 | Locked stocks of top management (locked upon resignation) | Before November 19, 2023, 25% of the total shares can be unlocked each year, and all shares held will be completely unlocked after November 19, 2023. |
| Incentive objects of 2021 Equity Incentive Plan | 1,185,500 | 74,000 | 0 | 1,111,500 | For equity incentive restricted stocks, 74,000 shares of restricted stock of resigned incentive objects that have been granted but failed to meet the conditions of releasing restrictions were repurchased and cancelled by the Company in the current period. | In the Company's 2021 Restricted Stock Incentive Plan, 1,209,500 shares of restricted stock were transferred to 293 incentive objects 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 is expected to be unlocked on January 27, 2024. The second phase is expected to be unlocked on January 27, 2025. |
| Incentive objects of 2022 Equity Incentive Plan | 1,253,500 | 1,750 | 79,000 | 1,330,750 | For equity incentive restricted stocks, 1,750 shares of restricted stock of resigned | In the Company's 2022 Restricted Stock Incentive Plan, 1,253,500 shares of restricted stock were transferred to 288 incentive objects on November 10, |
| incentive objects that have been granted but failed to meet the conditions of releasing restrictions were repurchased and cancelled by the Company in the current period. | 2022. A total of 79,000 restricted stock of the postponed portion were transferred to two incentive objects 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 on November 10, 2025, and the second phase of the postponed portion is expected to be unlocked on February 24, 2026. | |||||
| Total | 3,110,073 | 228,438 | 82,975 | 2,964,610 | -- | -- |
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 | 13,595 | 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 | ||||||||
| 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 | 82.64% | 666,681,904 | 0 | 0 | 666,681,904 | ||
| Hong Kong Securities Clearing Company Ltd. | Foreign legal entity | 9.18% | 74,087,760 | 606,297 | 0 | 74,087,760 | ||
| Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds | Others | 1.01% | 8,165,740 | -1,435,819 | 0 | 8,165,740 | ||
| China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds | Others | 0.33% | 2,649,513 | -320,600 | 0 | 2,649,513 | ||
| BNP Paribas-Own Funds | Foreign legal entity | 0.27% | 2,170,371 | 21,001 | 0 | 2,170,371 | ||
| China Construction Bank-Zhongtai Yuanhe Value-selected Complex Securities Investment Funds | Others | 0.24% | 1,911,410 | 1,911,410 | 0 | 1,911,410 | ||||
| Industrial Bank-Xingquan Trend Investment Complex Securities Investment Funds | Others | 0.22% | 1,799,895 | -399,961 | 0 | 1,799,895 | ||||
| Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities Investment Funds | Others | 0.21% | 1,708,227 | -195,200 | 0 | 1,708,227 | ||||
| ABC- CSI 500 Index Traded Securities Investment Funds | Others | 0.10% | 822,021 | 822,021 | 0 | 822,021 | ||||
| China Merchants Bank-Baoying New Value Flexible Complex Securities Investment Funds | Others | 0.10% | 800,000 | 800,000 | 0 | 800,000 | ||||
| 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 associated relationships of shareholders or concerted actions | Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds, China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds, China Construction Bank-Zhongtai Yuanhe Value-selected Complex Securities Investment Funds and Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities Investment Funds belong to Zhongtai Fund. 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 11) | At the end of the reporting period, the Company held a total of 4,827,500 shares in the special securities account for repurchase. | |||||||||
| Shareholding information of top 10 common shareholders holding non-restricted shares | ||||||||||
| 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. | 74,087,760 | RMB common shares | 74,087,760 | |||||||
| Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds | 8,165,740 | RMB common shares | 8,165,740 | |||||||
| China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds | 2,649,513 | RMB common shares | 2,649,513 | |||||||
| BNP Paribas-Own Funds | 2,170,371 | RMB common shares | 2,170,371 | |||||||
| China Construction Bank-Zhongtai Yuanhe Value-selected Complex Securities Investment Funds | 1,911,410 | RMB common shares | 1,911,410 | |||||||
| Industrial Bank-Xingquan Trend Investment Complex Securities Investment Funds | 1,799,895 | RMB common shares | 1,799,895 | |||||||
| Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities Investment Funds | 1,708,227 | RMB common shares | 1,708,227 | |||||||
| ABC- CSI 500 Index Traded Securities Investment Funds | 822,021 | RMB common shares | 822,021 | |||||||
| China Merchants Bank-Baoying New Value Flexible Complex | 800,000 | RMB common | 800,000 | |||||||
| Securities Investment Funds | shares | |||
| 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 | |||
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 | 364,602 | 0 | 0 | 364,602 | 0 | 0 | 0 |
| Cheung Kwok Wah | General Manager | On-service | 142,000 | 0 | 0 | 142,000 | 142,000 | 0 | 142,000 |
| Xu Bo | Chief Financial Officer | On-service | 175,303 | 58,000 | 0 | 233,303 | 45,000 | 58,000 | 103,000 |
| Ye Jide | Vice General Manager, Board Secretary | On-service | 59,143 | 21,000 | 0 | 80,143 | 20,000 | 21,000 | 41,000 |
| Total | -- | -- | 741,048 | 79,000 | 0 | 820,048 | 207,000 | 79,000 | 286,000 |
V. Change Condition of Controlling Shareholders and Actual Controllers
Change 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 REPORTI. Audit ReportWhether the semiannual report has been audited.
□ Yes ? No
The Company's semiannual financial report has not been audited.II. Financial StatementsUnit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
Unit: RMB
| Item | June 30, 2023 | January 1, 2023 |
| Current assets: | ||
| Monetary capital | 1,859,681,088.15 | 3,563,140,907.75 |
| Settlement reserve | ||
| Loans to other banks | ||
| Transactional financial assets | 250,129,103.13 | 431,382,527.79 |
| Derivative financial assets | ||
| Notes receivable | 20,847,819.64 | 27,325,952.95 |
| Accounts receivable | 2,253,001,396.06 | 1,926,518,118.38 |
| Receivables financing | 238,173,347.65 | 235,957,044.34 |
| Advance payment | 204,590,177.08 | 339,609,547.02 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserve receivable | ||
| Other receivables | 17,444,244.73 | 16,373,697.26 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Reverse-REPO financial assets | ||
| Inventories | 1,937,374,529.58 | 2,494,922,856.42 |
| Contract assets |
| Held-for-sale assets | ||
| Non-current assets due within one year | 303,175,671.23 | 32,157,534.25 |
| Other current assets | 302,738,405.12 | 450,986,016.76 |
| Total current assets | 7,387,155,782.37 | 9,518,374,202.92 |
| Non-current assets: | ||
| Loans and advances granted | ||
| Debt investment | ||
| Other debt investment | 800,049,383.57 | 1,024,794,890.43 |
| Long-term receivables | ||
| Long-term equity investment | 61,763,872.57 | 62,196,139.53 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 1,252,394,688.18 | 1,303,075,391.03 |
| Construction in progress | 16,386,809.27 | 12,005,654.73 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 189,573,789.61 | 190,718,962.82 |
| Intangible assets | 439,304,174.11 | 440,017,733.16 |
| Development expenditures | ||
| Goodwill | ||
| Long-term unamortized expenses | ||
| Deferred income tax assets | 386,446,826.89 | 401,472,928.85 |
| Other non-current assets | ||
| Total non-current assets | 3,145,919,544.20 | 3,434,281,700.55 |
| Total assets | 10,533,075,326.57 | 12,952,655,903.47 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Central bank loan | ||
| Loans from other banks | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 1,395,862,500.00 | 1,057,611,900.00 |
| Accounts payable | 2,496,406,000.99 | 2,635,521,548.19 |
| Advance receipt | ||
| Contract liabilities | 480,254,227.80 | 1,153,932,879.53 |
| 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 | 229,513,760.42 | 289,075,428.50 |
| Taxes payable | 168,868,980.67 | 204,608,713.27 |
| Other payables | 139,535,730.90 | 137,729,222.63 |
| Including: Interest payable | ||
| Dividend payable | ||
| Handling fee and commission payable | ||
| Reinsurance accounts payable | ||
| Held-for-sale liabilities | ||
| Non-current liabilities due within one year | 45,009,692.66 | 41,924,940.24 |
| Other current liabilities | 94,784,755.79 | 194,699,612.98 |
| Total current liabilities | 5,050,235,649.23 | 5,715,104,245.34 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Lease obligation | 142,355,428.33 | 150,779,916.58 |
| Long-term payables | ||
| Long-term employee remuneration payable | 1,255,162.03 | 1,441,111.55 |
| Estimated liabilities | 12,085,095.50 | 12,640,441.72 |
| Deferred incomes | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 155,695,685.86 | 164,861,469.85 |
| Total liabilities | 5,205,931,335.09 | 5,879,965,715.19 |
| Owners' equities: | ||
| Share capital | 806,708,657.00 | 808,654,476.00 |
| Other equity instruments | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Capital reserve | 152,329,663.57 | 125,368,989.44 |
| Minus: Treasury share | 238,197,429.87 | 99,724,823.49 |
| Other comprehensive incomes | -3,403,285.43 | -20,454,823.26 |
| Special reserve | ||
| Surplus reserve | 282,083,639.52 | 356,924,811.32 |
| General risk reserve | ||
| Undistributed profit | 4,291,484,131.78 | 5,865,316,233.53 |
| Total owners' equities belonging to parent company | 5,291,005,376.57 | 7,036,084,863.54 |
| Minority shareholders' equities | 36,138,614.91 | 36,605,324.74 |
| Total owners' equities | 5,327,143,991.48 | 7,072,690,188.28 |
| Total liabilities and owners' equities | 10,533,075,326.57 | 12,952,655,903.47 |
Legal representative: Thierry de LA TOUR D’ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting department: Xu Bo
2. Balance sheet of parent company
Unit: RMB
| Item | June 30, 2023 | January 1, 2023 |
| Current assets: | ||
| Monetary capital | 629,993,593.11 | 1,484,137,518.26 |
| Transactional financial assets | 250,129,103.13 | 200,131,817.00 |
| Derivative financial assets | ||
| Notes receivable | 2,800,000.00 | 1,342,003.33 |
| Accounts receivable | 439,220,534.56 | 374,598,742.75 |
| Receivables financing | 175,500.00 | 4,800,000.00 |
| Advance payment | 4,622,546.12 | 46,224,404.38 |
| Other receivables | 757,789,870.82 | 1,174,381,191.82 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 158,583,828.45 | 164,679,339.53 |
| Contract assets | ||
| Held-for-sale assets | ||
| Non-current assets due within one year | 237,631,671.23 | 32,157,534.25 |
| Other current assets | 232,289,624.40 | 388,309,086.23 |
| Total current assets | 2,713,236,271.82 | 3,870,761,637.55 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | 201,645,863.02 | |
| Long-term receivables | ||
| Long-term equity investment | 2,838,869,242.08 | 2,826,017,955.55 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 146,643,360.60 | 155,241,036.13 |
| Construction in progress | 605,070.15 | |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 3,242,932.45 | 3,752,480.47 |
| Intangible assets | 76,178,275.77 | 80,034,692.59 |
| Development expenditures | ||
| Goodwill | ||
| Long-term unamortized expenses | ||
| Deferred income tax assets | 20,051,720.66 | 15,974,025.22 |
| Other non-current assets | ||
| Total non-current assets | 3,085,590,601.71 | 3,282,666,052.98 |
| Total assets | 5,798,826,873.53 | 7,153,427,690.53 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 22,500,000.00 | 15,650,000.00 |
| Accounts payable | 166,697,216.29 | 193,807,274.54 |
| Advance receipt | ||
| Contract liabilities | 4,864,529.55 | 2,796,093.48 |
| Employee remuneration payable | 31,911,435.60 | 41,689,539.05 |
| Taxes payable | 38,951,827.44 | 23,453,381.53 |
| Other payables | 2,411,113,607.34 | 1,224,151,285.03 |
| Including: Interest payable | ||
| Dividend payable | ||
| Held-for-sale liabilities | ||
| Non-current liabilities due within one year | 1,093,595.70 | 227,345.02 |
| Other current liabilities | 2,869,411.10 | 1,447,611.99 |
| Total current liabilities | 2,680,001,623.02 | 1,503,222,530.64 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Lease obligation | 2,144,732.68 | 2,859,701.28 |
| Long-term payables | ||
| Long-term employee remuneration payable | 147,968.40 | 166,125.04 |
| Estimated liabilities | ||
| Deferred incomes | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 2,292,701.08 | 3,025,826.32 |
| Total liabilities | 2,682,294,324.10 | 1,506,248,356.96 |
| Owners' equities: | ||
| Share capital | 806,708,657.00 | 808,654,476.00 |
| Other equity instruments | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Capital reserve | 229,314,861.54 | 202,697,741.40 |
| Minus: Treasury share | 238,197,429.87 | 99,724,823.49 |
| Other comprehensive incomes | ||
| Special reserve | ||
| Surplus reserve | 329,498,066.20 | 404,339,238.00 |
| Undistributed profit | 1,989,208,394.56 | 4,331,212,701.66 |
| Total owners' equities | 3,116,532,549.43 | 5,647,179,333.57 |
| Total liabilities and owners' equities | 5,798,826,873.53 | 7,153,427,690.53 |
3. Consolidated profit statement
Unit: RMB
| Item | Semiannual period in 2023 | Semiannual period in 2022 |
| I. Total Operating Incomes | 9,982,616,440.73 | 10,323,979,744.82 |
| Including: Operating income | 9,982,616,440.73 | 10,323,979,744.82 |
| Interest revenues | ||
| Premium earned | ||
| Revenue from handling fees and commissions | ||
| II. Total Operating Costs | 8,925,480,649.92 | 9,158,859,522.93 |
| Including: Operating cost | 7,444,829,256.71 | 7,670,449,954.61 |
| 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 | 61,085,709.24 | 67,500,088.72 |
| Sales expenses | 1,098,400,634.74 | 1,078,585,004.10 |
| Administrative expenses | 189,032,788.40 | 188,658,026.76 |
| R&D expenses | 174,383,802.42 | 194,481,803.42 |
| Financial expenses | -42,251,541.59 | -40,815,354.68 |
| Including: Interest expenses | 7,200,648.89 | 4,810,441.61 |
| Interest revenues | 49,382,432.80 | 32,112,351.33 |
| Plus: Other incomes | 30,211,321.84 | 40,687,848.15 |
| Investment income ("-" for loss) | 31,013,219.53 | 38,216,844.32 |
| Including: Investment income on associated enterprise and joint venture | -460,529.47 | -457,219.85 |
| 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) | 129,103.13 | 550,529.85 |
| Credit impairment loss ("-" for loss) | -13,035,606.89 | 25,222,441.21 |
| Asset impairment loss ("-" for loss) | -5,771,681.15 | -16,045,044.53 |
| Assets disposal income ("-" for loss) | -997,982.47 | -193,453.10 |
| III. Operating Profit ("-" for Loss) | 1,098,684,164.80 | 1,253,559,387.79 |
| Plus: Non-operating income | 1,689,086.57 | 2,288,254.03 |
| Minus: Non-operating expense | 2,243,477.16 | 2,896,308.83 |
| IV. Total Profit ("-" for Total Loss) | 1,098,129,774.21 | 1,252,951,332.99 |
| Minus: Income tax expenses | 218,895,998.85 | 319,256,554.10 |
| V. Net Profit ("-" for Net Loss) | 879,233,775.36 | 933,694,778.89 |
| (I) By business continuity | ||
| 1. Net profit under continuing operation ("-" for net loss) | 879,233,775.36 | 933,694,778.89 |
| 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) | 880,618,279.78 | 932,849,164.03 |
| 2. Minority shareholders' profit and loss ("-" for net loss) | -1,384,504.42 | 845,614.86 |
| VI. After-tax Net Amount of Other Comprehensive Incomes | 17,969,332.42 | 11,179,909.75 |
| After-tax net amount of other comprehensive income attributable to the owners of parent company | 17,051,537.83 | 11,100,770.29 |
| (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 | 17,051,537.83 | 11,100,770.29 |
| 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 | 17,051,537.83 | 11,100,770.29 |
| 7. Others | ||
| After-tax net amount of other comprehensive incomes attributable to minority shareholders | 917,794.59 | 79,139.46 |
| VII. Total Comprehensive Incomes | 897,203,107.78 | 944,874,688.64 |
| Total comprehensive incomes attributable to owners of parent company | 897,669,817.61 | 943,949,934.32 |
| Total comprehensive incomes attributable to minority shareholders | -466,709.83 | 924,754.32 |
| VIII. Earnings Per Share: | ||
| (I) Basic earnings per share | 1.097 | 1.155 |
| (II) Diluted earnings per share | 1.095 | 1.155 |
For the enterprise merger under the same control in the current period, the net profit realized by the merged party before merger wasRMB 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 accounting department: Xu Bo
4. Profit statement of the parent company
Unit: RMB
| Item | Semiannual period in 2023 | Semiannual period in 2022 |
| I. Operating Income | 1,194,339,510.40 | 1,118,472,456.99 |
| Minus: Operating cost | 1,005,374,520.95 | 1,025,029,076.41 |
| Taxes and surcharges | 6,391,944.74 | 7,884,054.34 |
| Sales expenses | 15,107,839.17 | 14,001,016.71 |
| Administrative expenses | 64,044,074.29 | 64,126,174.81 |
| R&D expenses | 2,004,150.57 | 2,352,554.61 |
| Financial expenses | -32,823,697.01 | -27,520,636.18 |
| Including: Interest expenses | 74,956.71 | 6,883,884.15 |
| Interest revenues | 25,712,716.21 | 28,750,182.79 |
| Plus: Other incomes | 3,527,610.88 | 6,194,324.12 |
| Investment income ("-" for loss) | 11,840,400.25 | 33,451,552.55 |
| Including: Investment income on associated enterprise and joint venture | -460,529.47 | -457,219.85 |
| 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) | 129,103.13 | |
| Credit impairment loss ("-" for loss) | -2,598,181.78 | 8,948,497.00 |
| Asset impairment loss ("-" for loss) | -299,930.56 | -162,535.03 |
| Assets disposal income ("-" for loss) | 95,194.01 | -2,477.95 |
| II. Operating Profit ("-" for Loss) | 146,934,873.62 | 81,029,576.98 |
| Plus: Non-operating income | 45,121.42 | 294,087.79 |
| Minus: Non-operating expense | 1,312,764.27 | 1,642,475.77 |
| III. Total Profit ("-" for Total Loss) | 145,667,230.77 | 79,681,189.00 |
| Minus: Income tax expenses | 33,221,156.34 | 16,072,382.51 |
| IV. Net Profit ("-" for Net Loss) | 112,446,074.43 | 63,608,806.49 |
| (I) Net profit under discontinuing operation ("-" for net loss) | 112,446,074.43 | 63,608,806.49 |
| (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 | 112,446,074.43 | 63,608,806.49 |
| 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 2023 | Semiannual period in 2022 |
| I. Cash Flows from Operating Activities: | ||
| Cash received from sales of commodities or rendering of services | 7,924,920,392.30 | 9,104,543,317.02 |
| 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 | 131,101,803.34 | 288,937,060.38 |
| Other cash receipts related to operating activities | 57,545,486.47 | 66,261,772.81 |
| Subtotal of cash inflows from operating activities | 8,113,567,682.11 | 9,459,742,150.21 |
| Cash payment for purchasing commodities and receiving services | 4,978,905,125.78 | 5,387,151,906.60 |
| 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 | 871,059,709.61 | 973,247,343.65 |
| Taxes paid | 576,347,884.12 | 714,021,716.57 |
| Other cash expenses related to operating activities | 1,132,214,451.48 | 1,076,476,317.06 |
| Subtotal of cash outflows from operating activities | 7,558,527,170.99 | 8,150,897,283.88 |
| Net cash flows from operating activities | 555,040,511.12 | 1,308,844,866.33 |
| II. Net Cash Flows from Investing Activities: | ||
| Cash received from return of investments | ||
| Cash received from investment incomes | 53,860,834.80 | 151,894,174.39 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 1,900.00 | 541,981.84 |
| Net cash receipts from disposal of subsidiaries and other business units | ||
| Other cash receipts related to investing activities | 2,647,094,578.70 | 1,380,000,000.00 |
| Subtotal of cash inflows from investing activities | 2,700,957,313.50 | 1,532,436,156.23 |
| Net cash paid for the construction of fixed assets, intangible assets and other long-term assets | 73,784,894.56 | 99,411,104.56 |
| 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 | 1,540,000,000.00 | 550,000,000.00 |
| Subtotal of cash outflows from investing activities | 1,613,784,894.56 | 649,411,104.56 |
| Net cash flows from investing activities | 1,087,172,418.94 | 883,025,051.67 |
| 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 | ||
| Other cash receipts related to financing activities | 79,000.00 | |
| Subtotal of cash inflows from financing activities | 79,000.00 | |
| Cash paid for debt repayment | ||
| Cash paid for distribution of dividends or profits or for payment of interests | 2,439,504,228.21 | 1,559,494,958.68 |
| Including: Dividends or profits paid by subsidiaries to minority shareholders | ||
| Other cash payments related to financing activities | 263,071,559.40 | 79,675,573.22 |
| Subtotal of cash outflows from financing activities | 2,702,575,787.61 | 1,639,170,531.90 |
| Net cash flows from financing activities | -2,702,496,787.61 | -1,639,170,531.90 |
| IV. Impact of Change in Exchange Rate on Cash and Cash Equivalents | 8,570,176.47 | 12,171,493.31 |
| V. Net Increase in Cash and Cash Equivalents | -1,051,713,681.08 | 564,870,879.41 |
| Plus: Balance of cash and cash equivalents at the beginning of the period | 2,395,932,752.38 | 2,443,731,679.06 |
| VI. Balance of Cash and Cash Equivalents at the End of the Period | 1,344,219,071.30 | 3,008,602,558.47 |
6. Cash flow statement of parent company
Unit: RMB
| Item | Semiannual period in 2023 | Semiannual period in 2022 |
| I. Cash Flows from Operating Activities: | ||
| Cash received from sales of commodities or rendering of services | 968,764,013.06 | 1,324,182,549.43 |
| Tax refund received | 52,436,667.54 | 114,517,829.38 |
| Other cash receipts related to operating activities | 18,459,582.37 | 19,758,321.08 |
| Subtotal of cash inflows from operating activities | 1,039,660,262.97 | 1,458,458,699.89 |
| Cash payment for purchasing commodities and receiving services | 783,891,523.17 | 1,012,862,505.92 |
| Cash paid to and for employees | 89,142,331.41 | 106,996,783.81 |
| Taxes paid | 28,289,765.89 | 50,991,057.87 |
| Other cash expenses related to operating activities | 50,106,557.48 | 57,637,041.82 |
| Subtotal of cash outflows from operating activities | 951,430,177.95 | 1,228,487,389.42 |
| Net cash flows from operating activities | 88,230,085.02 | 229,971,310.47 |
| II. Net Cash Flows from Investing Activities: | ||
| Cash received from return of investments | ||
| Cash received from investment incomes | 31,219,971.79 | 150,204,703.19 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 14,000.00 |
| Net cash receipts from disposal of subsidiaries and other business units | ||
| Other cash receipts related to investing activities | 1,350,000,000.00 | 1,300,000,000.00 |
| Subtotal of cash inflows from investing activities | 1,381,219,971.79 | 1,450,218,703.19 |
| Net cash paid for the construction of fixed assets, intangible assets and other long-term assets | 10,814,471.93 | 29,041,702.26 |
| Cash paid for investment | ||
| Net cash paid for acquiring subsidiaries and other business units | ||
| Other cash payments related to investing activities | 892,817,724.85 | 1,042,829,946.14 |
| Subtotal of cash outflows from investing activities | 903,632,196.78 | 1,071,871,648.40 |
| Net cash flows from investing activities | 477,587,775.01 | 378,347,054.79 |
| III. Net Cash Flows from Financing Activities: | ||
| Cash from absorbing investments | ||
| Cash received from obtaining borrowings | ||
| Other cash receipts related to financing activities | 1,650,034,224.45 | 1,255,053,202.49 |
| Subtotal of cash inflows from financing activities | 1,650,034,224.45 | 1,255,053,202.49 |
| Cash paid for debt repayment | ||
| Cash paid for distribution of dividends or profits or for payment of interests | 2,439,504,228.21 | 1,559,494,958.68 |
| Other cash payments related to financing activities | 230,282,075.87 | 58,185,415.23 |
| Subtotal of cash outflows from financing activities | 2,669,786,304.08 | 1,617,680,373.91 |
| Net cash flows from financing activities | -1,019,752,079.63 | -362,627,171.42 |
| IV. Impact of Change in Exchange Rate on Cash and Cash Equivalents | -26,143.91 | 4,142,335.13 |
| V. Net Increase in Cash and Cash Equivalents | -453,960,363.51 | 249,833,528.97 |
| Plus: Balance of cash and cash equivalents at the beginning of the period | 1,083,953,956.62 | 800,923,960.55 |
| VI. Balance of Cash and Cash Equivalents at the End of the Period | 629,993,593.11 | 1,050,757,489.52 |
7. Statement of Changes in Consolidated Owners' Equities
Amount in the current period
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 | |||||||||||||||
| Enterprise merger under the same control | |||||||||||||||
| 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. | -2,439,504,228. | -2,439,504,228. |
| 21 | 21 | 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 |
Amount of last year
Unit: RMB
| Item | Semiannual period in 2022 | ||||||||||||||
| Owners' equities belonging to parent company | Minority shareholders' equities | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: Treasury share | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
| s | |||||||||||||||
| I. Closing Balance of Last Year | 808,678,476.00 | 122,970,340.27 | 76,159,897.25 | -41,522,541.60 | 356,924,811.32 | 6,451,748,564.12 | 7,622,639,752.86 | 35,668,094.06 | 7,658,307,846.92 | ||||||
| Plus: Changes of accounting policies | |||||||||||||||
| Error correction of prior period | |||||||||||||||
| Enterprise merger under the same control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening Balance of Current Year | 808,678,476.00 | 122,970,340.27 | 76,159,897.25 | -41,522,541.60 | 356,924,811.32 | 6,451,748,564.12 | 7,622,639,752.86 | 35,668,094.06 | 7,658,307,846.92 | ||||||
| III. Current Period Increase ("-" for Decrease) | -24,000.00 | 22,605,249.89 | -16,788,982.02 | 11,100,770.29 | -702,796,551.89 | -652,325,549.69 | 924,754.32 | -651,400,795.37 | |||||||
| (I) Total of comprehensive incomes | 11,100,770.29 | 932,849,164.03 | 943,949,934.32 | 924,754.32 | 944,874,688.64 | ||||||||||
| (II) Capital invested and reduced by owners | -24,000.00 | 22,605,249.89 | -74,974,397.25 | -76,150,757.24 | 21,404,889.90 | 21,404,889.90 | |||||||||
| 1. Common shares invested by owners | |||||||||||||||
| 2. Capital invested by other equity instrument holders | |||||||||||||||
| 3. Amount of share-based payment included into owners' equities | -24,000.00 | 22,605,249.89 | -74,974,397.25 | -76,150,757.24 | 21,404,889.90 | 21,404,889.90 | |||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | -1,559,494,958.68 | -1,559,494,958.68 | -1,559,494,958.68 | ||||||||||||
| 1. Appropriation of surplus reserve | |||||||||||||||
| 2. Appropriation of general risk reserve | |||||||||||||||
| 3. Distribution to | - | - | - |
| owners (or shareholders) | 1,559,494,958.68 | 1,559,494,958.68 | 1,559,494,958.68 | ||||||||||||
| 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 | 58,185,415.23 | -58,185,415.23 | -58,185,415.23 | ||||||||||||
| IV. Closing Balance of Current Period | 808,654,476.00 | 145,575,590.16 | 59,370,915.23 | -30,421,771.31 | 356,924,811.32 | 5,748,952,012.23 | 6,970,314,203.17 | 36,592,848.38 | 7,006,907,051.55 |
8. Statement of Changes in Owners' Equities of the Parent Company
Amount in the current period
Unit: RMB
| Item | Semiannual period in 2023 | |||||||||
| Share | Other equity instruments | Capital | Minus: | Other | Special | Surplus | Undistri | Others | Total | |
| capital | Preferred share | Perpetual bond | Others | reserve | Treasury share | comprehensive incomes | reserve | reserve | buted profit | owners' equities | ||
| 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 |
Amount of last year
Unit: RMB
| Item | Semiannual period in 2022 |
| 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 | 808,678,476.00 | 236,901,053.81 | 76,159,897.25 | 404,339,238.00 | 5,141,307,982.39 | 6,515,066,852.95 | ||||||
| Plus: Changes of accounting policies | ||||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of Current Year | 808,678,476.00 | 236,901,053.81 | 76,159,897.25 | 404,339,238.00 | 5,141,307,982.39 | 6,515,066,852.95 | ||||||
| III. Current Period Increase ("-" for Decrease) | -24,000.00 | 22,605,249.89 | -16,788,982.02 | -1,572,036,909.43 | -1,532,666,677.52 | |||||||
| (I) Total of comprehensive incomes | 63,608,806.49 | 63,608,806.49 | ||||||||||
| (II) Capital invested and reduced by owners | -24,000.00 | 22,605,249.89 | -74,974,397.25 | -76,150,757.24 | 21,404,889.90 | |||||||
| 1. Common shares invested by owners | ||||||||||||
| 2. Capital invested by other equity instrument holders | ||||||||||||
| 3. Amount of share-based payment included into owners' equities | -24,000.00 | 22,605,249.89 | -74,974,397.25 | -76,150,757.24 | 21,404,889.90 | |||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | -1,559,494,958.68 | -1,559,494,958.68 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Distribution to owners (or shareholders) | -1,559,494,958.68 | -1,559,494,958.68 | ||||||||||
| 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 | 58,185,415.23 | -58,185,415.23 | ||||||||||
| IV. Closing Balance of Current Period | 808,654,476.00 | 259,506,303.70 | 59,370,915.23 | 404,339,238.00 | 3,569,271,072.96 | 4,982,400,175.43 |
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 ZSS [2000] No. 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 parent companyis 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 and distributionof kitchen utensils, stainless steel products, daily hardware, small domestic appliances and cookware; products are cookware and smalldomestic appliances.
The financial statement was released after the approval of the Company's Board of Directors on August 30, 2023.By June 30, 2023, there were altogether 20 subsidiaries included in the scope of consolidated financial statement. See Note IX."Equity in Other Entities" for details.IV. Preparation Basis of the Financial Statements
1. Preparation basis
The financial statements of Supor are prepared based on the assumption of continuing operation and actual transactions and itemsand in accordance with the Accounting Standard for Business Enterprises -- Basic Standard (Released CZBL No.33, Revised CZBLNo.76) issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as the "Ministry of Finance"), and42 specific accounting standards, guidelines for the application of Accounting Standards for Business Enterprises, interpretations tothe Accounting Standards for Business Enterprises and other provisions released and revised on and after February 15, 2006 (hereinafterreferred to as Accounting Standards for Business Enterprises) and the disclosure provisions of the Regulations of CorporateInformation Disclosure and Preparation by Companies Publicly Issuing Securities No. 15 -- General Provisions on FinancialReporting (Revised in 2014) of the China Securities Regulatory Commission.According to the relevant regulations of the Accounting Standards for Business Enterprises, Supor's accounting is made on accrualbasis. Except for certain financial instruments, measurements in these financial statements are made on the basis of historical cost. Ifan 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 made accounting policies and estimates as to method for accruing bad debt provision for receivables, method forcalculating inventory value and accruing depreciation provision, depreciation of fixed assets and amortization of intangible assets,recognition time point of income and other transactions and items based on the actual production and operation features and theprovisions of related Accounting Standards for Business Enterprises. For details, please refer to descriptions of Note V. "9. Financialinstruments", "12. Inventories (3)", "16. Fixed assets (2)", "19. Intangible assets (1)", "26. Revenue".
1. Statement of abidance of the Accounting Standards for Business Enterprises
The financial statement conforms to the requirements of Accounting Standards for Business Enterprises and has reflected relevantinformation such as the financial conditions on June 30, 2023, semiannual operating results and cash flow in 2023 of the Company andSupor on an authentic and intact basis. In addition, the financial statements of the Company and Supor conform to the disclosurerequirements of the Regulations of Corporate Information Disclosure and Preparation by Companies Publicly Issuing Securities No.15 -- General Provisions on Financial Reporting revised by the China Securities Regulatory Commission in 2014 and related financialstatements 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 the liquidity ofassets 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. Supor usesRMB as the recording currency to prepare the financial statement.
5. Accounting treatment method for the enterprise merger under and not under the same control
Enterprise 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 judgment methodof "concentration test" when judging whether the acquired asset portfolio constitutes a business. If the portfolio passes the concentrationtest, it is judged that it does not constitute a business. Otherwise, it shall still be judged in line with business conditions.
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 per thefollowing 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 this is an enterprise merger under the same control. For enterprise merger under the same control,the party which has obtained the control rights for other combining enterprises on the merger date will be considered as the mergingparty, and other participating enterprise is the merged party. The merger date refers to the day when the merging party actually obtainsthe control rights of the merged party.
The assets and liabilities obtained by the merging party shall be measured at the book value of the merged party on the mergerdate. As to the difference between the book value of net assets acquired by merging party and the book value of merger considerationpaid by it (or total amount of the face value of shares issued), the capital reserve (share capital premium) shall be adjustedcorrespondingly; the retained earnings will be adjusted as long as capital reserve (share capital premium) is insufficient to be offset.
The merging party's direct expenses incurred from enterprise merger shall be included into the current profits and losses at thetime of occurrence.
(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 party whichhas obtained the control rights for other combining enterprises on the purchase date will be considered as the purchasing party, and
other participating enterprise is the purchased party. The purchase date refers to the day when the purchasing party obtains the controlright over the purchased party.
As for enterprise merger not under the same control, the merger costs include the assets paid by the purchasing party, the liabilitiesaccrued and assumed, as well as the fair value of equity securities issued for obtaining purchased party's control right on the purchasedate; the intermediary fees, such as auditing, legal service and evaluation and consulting, and other related administrative expenses forthe enterprise merger shall be included into the current profits and losses at the time of occurrence. Transaction cost of equity securitiesor debt securities issued by the purchasing party as merger consideration shall be included into initial recognition amount of the equitysecurities or debt securities. Contingent consideration involved shall be included into the merger cost according to the fair value at thepurchase date; if new or further proofs appearing within 12 months after the purchase date show that the contingent consideration needsto be adjusted, the merger goodwill shall be adjusted correspondingly. The merger costs incurred by the purchasing party and theidentifiable net assets obtained in the merger shall be measured at the fair value on the purchase date. The amount of the merger costlarger than the fair value of identifiable net assets of the purchased party acquired by it on the purchase date shall be recognized asgoodwill. If the merger cost is lower than the fair value of identifiable net assets of the purchased party obtained during merging, themeasurement of the identifiable assets of the purchased party obtained, liabilities or fair value of contingent liabilities and the mergercosts shall be reviewed firstly. If the merger cost is still lower than the fair value of identifiable net assets of the purchased partyobtained during merger, the difference shall be included into the current profits and losses.
If the deductible temporary difference of the purchased party gained by purchasing party fails to be recognized on the purchasedate due to the inconformity of the recognition condition of deferred income tax assets, and in case new or further information obtainedindicates that the relevant conditions on the purchase date have existed within 12 months after the purchase date, and it is predictedthat the economic benefits brought by the purchased party from deductible temporary differences can be realized on the purchase date,relevant deferred income tax assets shall be recognized, at the same time, the goodwill shall be reduced; if the goodwill is insufficientfor offset, the differential part shall be recognized as the current profits and losses; except for above conditions, in case the deferredincome tax assets are recognized to be related to the enterprise merger, they shall be included into the 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 Standards forBusiness Enterprises Explanation in Ministry of Finance (CK [2012] No. 19) and the judgment standard (refer to the Note V. "6.Preparation method for consolidated financial statements (2)") about "package deal" in Article 51 of the Accounting Standards forBusiness Enterprises No. 33 -- Consolidated Financial Statement. If the multiple transactions belong to the "package deal", refer to theabove descriptions of the part and Note V. "15. Long-term equity investment" to conduct the accounting treatment; for those notbelonging to "package deal", it shall distinguish individual financial statements and consolidated financial statements to conductrelevant 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 case thatthe equity of the purchased party held before the purchase date is involved in other comprehensive incomes, when disposing of theinvestment, 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 be includedinto the current investment income; in case that equity of the purchased party held before the purchase date is involved in othercomprehensive incomes, other comprehensive incomes related shall be transferred to the current investment income on the purchasedate.
6. 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 investee whichallows it to enjoy variable returns by participating relevant activities of such investee and to use such right to influence the amount ofsuch returns. The merger scope shall include the Company and all its subsidiaries, and "subsidiaries" refer to the bodies under thecontrol 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 current period,the beginning amount of the consolidated balance sheet will not be adjusted. As for the subsidiary increased due to the enterprisemerger not under the same control, its operating results and cash flow after the purchase date have been properly included into theconsolidated profit statement and consolidated cash flow statement, and the beginning amount and contrast amount of the consolidatedfinancial statement shall not be adjusted. As for the subsidiary increased due to the enterprise merger under the same control and themerged party under consolidation by merger, the operating results and cash flow from the beginning of the current period of the mergerto the merger date have been properly included into the consolidated profit statement and the consolidated cash flow statement, andthe contrast amount of the consolidated financial statement shall be adjusted simultaneously.
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 statements accordingto the Company's accounting policy and accounting period. As for the subsidiary acquired by the enterprise merger not under the samecontrol, it's required to adjust its financial statements on the basis of fair value of identifiable net assets at the purchase 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 financial statementas the minority shareholders' equities and profits and losses. The share in the current net profit or loss of the subsidiary that belongs tominority shareholders' equities shall be set out as "minority shareholders' profit and loss" under net profit in the consolidated profitstatement. In case the losses of the subsidiary shared by minority shareholders exceed the share that shall be enjoyed by minorityshareholders in the subsidiary's shareholders' equities at the beginning of period, they shall be offset with minority 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 difference between thesum of the consideration acquired by equity disposal and the fair value of residual equity and the share of net assets of the originalsubsidiary that shall be enjoyed and is calculated continuously from the purchase date according to the original shareholding ratio shallbe included into the investment income of the current period when the control right is lost. As for other comprehensive incomes whichrelate to the equity investment of the original subsidiaries, when the control right is lost, the accounting treatment shall be carried outon the same basis as the subsidiary's direct disposal of relevant assets or liabilities. Thereafter, the residual equity of this part shall befurther measured in accordance with Accounting Standards for Business Enterprises No. 2 -- Long-term Equity Investment orAccounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial Instruments. See Note V. "15.Long-term equity investment" or Note V. "9. Financial instruments" for details.
If Supor disposes the equity investment to subsidiaries 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 right belong tothe package deal. When the articles, terms and conditions and the economic impact of various transactions for the disposal of the equityinvestment to subsidiaries are 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 where these transactions are considered to be concluded at the sametime or made in the case of considering mutual influence; ② where these transactions as a whole can reach a complete business result;
③ where the occurrence of a transaction depends on the occurrence of at least one other transaction; ④ where one transaction alone isnot economical, but when being considered together with other transactions, it is economical. If it is not a package deal, everytransaction will be subject to the accounting treatment according to the following suitable principles, namely, "partially dispose thelong-term equity investment of subsidiary when the control right is not lost" (See Note V. "15. Long-term equity investment (2) (d)")and "Lose the control right for the original subsidiary due to disposal of partial equity investment or other reasons" (see previousparagraph). If the transactions for the disposal of the equity investment to subsidiary until losing the control right are a package deal,they are regarded as a transaction that disposes the subsidiary and loses the control right for the accounting treatment; however, thedifference between each disposal price and the subsidiary's net asset share enjoyed corresponding to disposing investment before lossof control right shall be recognized as other comprehensive incomes in the consolidated financial statements, which will be transferredinto the current investment profits and losses on investments of losing the control right when the control right is lost.
7. 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, which 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.
8. 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 capitalization ofborrowing 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 at historical cost, the amount in the recording currency converted at the spotrate on the transaction date is still employed for measurement; as to foreign currency non-monetary items measured by fair value, it'srequired to employ the spot rate at the fair value confirmation date for conversion, and the resulting exchange difference belongs to thedifference of equity instrument investment measured at the fair value with their changes included into other comprehensive incomes,and is included into other comprehensive incomes; other differences 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 at the spot rate on the date of occurrence. Items under revenues andcosts in the profit statement shall be converted at the spot rate on the transaction date. The undistributed profit at the beginning of theyear is the year-end undistributed profit after the conversion in the last year; the year-end undistributed profit is calculated and presentedaccording to the profit distribution of each item after conversion; the balance of the total amount among the assets and liabilities aswell as shareholders' equities after conversion serves as "conversion difference in foreign currency statement" and is recognized as
other comprehensive incomes. For the disposal of overseas business and the loss of control right, the conversion difference in foreigncurrency statement related to the overseas business and presented under the shareholders' equities in the balance sheet is transferredwholly or according to the disposal ratio of the overseas business into the current 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 change in exchange rate on cash is listed separately in the cash flow statement as an adjustment item.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 shall betotally 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 be attributableto 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 change in exchange rate in the consolidated financial statements shall be recognized as othercomprehensive incomes as "conversion difference in foreign currency statements"; when disposing overseas business, it shall beincluded into the current disposal profits and losses.
9. 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 at amortized cost, financial assets measured at the fair value with theirchanges included into other comprehensive incomes, and financial assets measured at the fair value with their changes included intothe current profits and losses.
The business mode of the management of financial assets means that how Supor manages its financial assets to generate cashflows. Through business mode, it can be determined that whether the cash flow of financial assets managed by Supor is from thecollection of contractual cash flow, sales of financial assets, or both. Supor, based on the objective fact and specific business objectiveof financial asset management determined by key management personnel, makes decisions on the business mode for managing financialassets.
Supor evaluates the contractual cash flow characteristics 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 principal amount.Wherein, the principal refers to the fair value of financial assets at initial recognition; interest includes consideration of the time valueof money, the credit risk related to the outstanding principal amount for a specific period, and other basic borrowing risks, costs, andprofits. Furthermore, Supor evaluates the contract terms and conditions that are likely to cause changes in the distribution of time oramount of the contractual cash flow of financial assets, to determine whether they satisfy the requirements of the above contractualcash 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 after initialrecognition.
Financial assets shall be measured at 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 and lossesdirectly; as to other categories of financial assets, related transaction cost shall be included into the initial recognition amount. Accounts
receivable or notes receivable that are from sale of products or rendering of services, and do not include or take into account significantfinancing parts are taken as the initial recognition amount by Supor based on the consideration amount that Supor is entitled to receive.(a) Financial assets measured at amortized costThe business mode of Supor to manage financial assets measured at amortized cost is aimed at receiving contractual cash flows;the contractual cash flow characteristics of such financial assets are consistent with basic loan arrangements, that is, cash flowsgenerated at specific date are only payment of principal and interests for outstanding principal amount. Effective interest method isused by Supor to carry out subsequent measurement of such financial asset according to the amortized cost, and the gains or lossesarising 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. Such financial assets aremeasured at the fair value with their changes included into other comprehensive incomes by Supor, but impairment losses or gains,exchange profits and losses, and interest revenue calculated based on effective interest method are included into the current profits andlosses. When the financial asset is derecognized, the accumulated gains or losses previously included into other comprehensive incomeshall be transferred out of other comprehensive incomes 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 designation ismade on a single investment basis, and the relevant investment meets the definition of equity instrument from the issuer's point of view.Supor includes the related dividend income of such financial assets into the current profits and losses with the change in fair valueincluded into other comprehensive income. When the financial asset is derecognized, the accumulated gains or losses previouslyincluded into other comprehensive income shall be transferred out of other comprehensive income to retained earnings and not includedinto the current profits and losses.(c) Financial assets measured at the fair value with their changes included into the current profits and lossesSupor recognizes foregoing financial assets measured at amortized cost and that are not financial assets measured at the fair valuewith their changes included into other comprehensive incomes as financial assets measured at the fair value with their changes includedinto the current profits and losses. In addition, during initial recognition, in order to eliminate or significantly reduce accountingmismatches, Supor designates part of the financial assets measured at the fair value with their changes included into the current profitsand losses. As to such financial assets, subsequent measurement shall be carried out by Supor based on fair value, and the resultinggains or losses (including interest and dividend income) are included into current profits and losses, unless the financial asset is part ofthe 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 intothe current profits and losses directly; as to other financial liabilities, related transaction cost shall be included into the initial recognitionamount.(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 be measuredat 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 incomes, and when such liabilities are
derecognized, accumulated changes in their fair value caused by changes in Supor's own credit risk that is included into othercomprehensive income are transferred to retained earnings. Other changes in fair value are included into current profits and losses. Ifthe treatment of impact of changes in credit risk of these financial liabilities in the above manner will cause or expand accountingmismatches in profit or loss, Supor will include all gains or losses of such financial liabilities (including impact of changes in theenterprise'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 debt instrumentat maturity.After initial recognition, the income related to the financial guarantee contract is apportioned and included into the current profitsand losses in accordance with the accounting policies mentioned in Note V. "26. Revenue". Financial guarantee liabilities aresubsequently measured according to the higher of the loss provision amount determined according to the impairment principle offinancial instruments and the balance of its initial recognition amount after deducting the accumulated amortization amount of incomerelated 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 as financialliabilities measured at amortized cost and measured subsequently at amortized cost, and gains or losses arising from derecognition oramortization 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 the contractualright to receive cash flow from the financial assets is terminated; ② the financial assets have been transferred and almost all the risksand rewards in the ownership of the financial assets are transferred to the transferee; ③ the financial assets have been transferred and,although the enterprise has neither transferred nor retained almost all risks and rewards in the ownership of the financial assets, it haswaived its control over the financial assets.If the enterprise 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 continuous involvementof the financial assets transferred, and the relevant liabilities shall be recognized accordingly. Degree of continuous involvement of thefinancial assets transferred is the risk level of the enterprise 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 included intoother 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 differencebetween the sum of the consideration received for the transfer and accumulated amount of the change in fair value to be amortized toderecognition part and originally included into other comprehensive income, and the foregoing book value amortized shall be includedinto 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 rewards relatedto the ownership of such financial assets are transferred to the transferee, derecognition of such financial assets shall be conducted;derecognition of such financial assets should not be conducted if the risks and rewards related to the ownership of such financial assetsare reserved; if the risks and rewards related to the ownership of such financial assets are not transferred nor reserved, it needs todetermine whether the enterprise keeps its control over such assets and make accounting treatment based on principles as described inthe 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 carry outderecognition of such financial liabilities or part of them. In case Supor (borrower) signs an agreement with the debtor to replace theoriginal financial liabilities by means of bearing new financial liabilities, and contract terms and conditions related to the new financialliabilities and original financial liabilities are different in essence, it's required to carry out derecognition of original financial liabilitiesand recognize the new financial liabilities simultaneously. If Supor substantially modifies the contract terms and conditions of theoriginal financial liability (or part of it), the original financial liability is derecognized and a new financial liability is recognized inaccordance with the revised terms and conditions.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 into the current profits and lossesby Supor.
(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 financial liabilitiessimultaneously, the net amount after mutual offset of such financial assets and financial liabilities shall be set out in the balance sheet.Otherwise, financial assets and financial liabilities shall be set out in the balance sheet respectively and will not be offset mutually.
(6) Equity instruments
An equity instrument refers to a contract that can prove the ownership of residual interest in assets after Supor deducts all liabilities.Supor's issuing (including refinancing), repurchase, sale or cancellation of equity instruments are treated as changes in equity, andtransaction costs related to equity transactions are deducted from equity. Supor does not determine changes in fair value of equityinstruments.
Distribution of dividends (including "interest" from instruments classified as equity instruments) from the equity instrumentsduring the duration of Supor is treated as profit distribution.
10. Financial assets impairment
Supor needs to recognize the financial assets with impairment losses as financial asset measured at amortized costs and debt toolsmeasured at the fair value with their changes included into other comprehensive incomes, including mainly notes receivable, accountsreceivable, receivables financing, other receivables and other debt investments. Moreover, for contract assets and some financialguarantee contracts, the impairment provision shall be accrued and the credit impairment loss shall be recognized pursuant to theaccounting 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.
Credit loss refers to the difference between all contractual cash flows discounted as per the original effective interest rate andreceivable from 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 ratebased on 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 each balancesheet date. In case of credit risk having remarkably increased after initial recognition, Supor will measure loss provision as per theamount equivalent to expected credit loss in the entire duration; in case of credit risk failing to remarkably increase after initialrecognition, Supor will measure loss provision as per the amount equivalent to expected credit loss in the next 12 months. At the timeof 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 to theexpected credit loss arising from all possible events of default regarding financial instrument occurring during the entire expectedduration. Expected credit loss in the next 12 months refers to expected credit loss resulting from default of financial instruments likelyoccurring within 12 months after the balance sheet date (expected duration if the expected duration of financial instruments is less than12 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 not increasedsignificantly since the initial recognition, and measures the loss provisions according to the expected credit losses of the future 12months.
(2) Standard for judging whether credit risk has remarkably increased after initial recognition
In case that probability of default of one financial asset recognized on the balance sheet date in the expected duration is obviouslyhigher than that recognized 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 as reasonableestimate 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 the relatedparties; receivables disputed with the opposite side or involving litigation or arbitration; receivable amounts with obvious signs showingthat the debtor possibly is not able to perform the repayment obligations, 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 estimated creditloss is greater than the book value of the current impairment provision, the difference is recognized as impairment loss; if not, it isrecognized 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:
| Accounts receivable: | |
| Portfolio 1: Age portfolio | Aging of receivables is used as the credit risk feature for this 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 receivablesThe 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 the initialrecognition. The other receivables other than individual credit risk assessment are divided into different portfolios based on theircredit 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. |
11. 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; See theNote V. "9. Financial instruments" and 10 "Financial assets impairments" for relevant accounting policies.
12. 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 end of amonth.
(3) Method of recognizing net realizable value and accruing depreciation reserve of inventories
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. For the inventories held for executing the sales contractor labor contract, the net realizable value shall be measured based on the contract price. When the amount of holding inventory is morethan the ordering amount in sales contract, the net realizable value of the excess inventory shall be measured based on general salesprice. The determination of net realizable value of the inventory shall be based on the concrete evidence acquired and consider thepurpose of holding inventory, and impacts of the events after the balance sheet date.
At the balance sheet date, the inventory shall be measured according to the cost or net realizable value, subject to the lower one.In case the cost is higher than net realizable value, inventory depreciation reserves shall be withdrawn. The inventory depreciationreserve is usually withdrawn based on the difference between the cost of a single inventory item and its net realizable value.
After the inventory depreciation reserve is withdrawn, if factors that previously reduced the value of inventory disappear, causingnet realizable value of inventory to be higher than its book value, the original inventory depreciation reserves will be reversed and theamount reversed is included into the current profits and losses.
(4) Inventory system is perpetual inventory system
(5) Amortization method for low value consumables and packing materials
Low value consumables shall be amortized by one-off amortization method during the requisition or during the period of use;packing materials shall be amortized by one-off amortization method during the requisition.
13. Contract assets
Supor lists the customer's unpaid contract consideration as contract assets in the balance sheet, under which Supor has fulfilled itsperformance 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 in netamount, 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. "10.Financial assets impairment".
14. Held-for-sale assets and 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. Thespecific 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 a similar transaction;Supor has made a resolution about sale plan and got certain of purchase commitment; it's predicted that the sale will be completedwithin one year. Disposal group refers to a group of assets that will be disposed together as a whole by selling or other means in atransaction and the liabilities directly related to these assets and transferred in the transaction. In case the asset group or asset groupportfolio where the disposal group belongs has amortized the goodwill acquired in enterprise merger according to Accounting Standardsfor Business Enterprises No. 8 -- Impairment of Assets, the disposal group shall include the goodwill amortized to it.
If there are non-current assets or disposal groups held for sale during initial measurement or on the balance sheet date based onremeasurement of Supor, if the book value is higher than the net amount by deducting the selling expenses with the fair value, the bookvalue shall be written down and be equal to the net amount by deducting the selling expenses with the fair value. The write-downamount shall be recognized as the asset impairment loss and included into the current profits and losses. At the same time, theimpairment provision of the held-for-sale assets shall be calculated and withdrawn. For the disposal group, it shall deduct the bookvalue of the goodwill in the disposal group with the asset impairment loss recognized, then deduct in proportion the book value of eachnon-current asset in the disposal group conforming to the measurement provisions in Accounting Standards for Business EnterprisesNo. 42 -- Held-for-sale Non-current Assets, Disposal Group and Discontinuing Operation (hereinafter referred to as "the Standard forHeld-for-sale Non-current Assets"). For the held-for-sale disposal group, if the net amount after deducting the selling expenses fromthe fair value on the subsequent balance sheet date increases, the previous write-down amount shall be recovered and shall be reversedfrom the recognized amount of asset impairment loss amount of the non-current asset as per the measurement provisions in the Standardfor Held-for-sale Non-current Assets after the assets are classified as held-for-sale category. The reverse amount shall be included intothe current profits and losses, and the book value shall be added in proportion of the book value of each non-current asset in the disposalgroup applicable to the measurement provisions on the Standard for Held-for-sale Non-current Assets, except for the goodwill; Bookvalue of the goodwill that has been offset and asset impairment loss recognized before the non-current assets applying to themeasurement provisions in the Standard for Held-for-sale Non-current Assets are classified as held-for-sale category shall not bereversed.
Depreciation or amortization will not be withdrawn for held-for-sale non-current assets or non-current assets in the disposal group,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, Supor 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 to thefollowing two items, subject to the lower one: ① book value before the assets are classified as held-for-sale category, namely, theamount after the adjustment is carried out according to the depreciation, amortization or impairment, etc. that shall be recognized inthe condition that the assets are supposed not to be classified as held-for-sale category; ② recoverable amount.
15. Long-term equity investment
The long-term equity investment mentioned in this part refers to the long-term equity investment of which Supor has control right,common control right or significant impact on the invested units. Long-term equity investments that Supor does not have control,common control or significant impact on the invested unit are accounted for as financial assets measured at the fair value with theirchanges included into the current profits and losses. If such assets are not non-transactional, Supor may specify these capitals as
measured at the fair value with their changes included into other comprehensive incomes at the time of initial recognition. Relevantaccounting policies can be seen in Note V. "9. Financial instruments".Common control refers to common control on a certain arrangement according to related provisions by Supor and related activitiesof the arrangement can be decided only after the consent of the participant sharing the control right. Significant impact refers to Supor'spower on participating in the decision-making of financial and operating policies of the invested unit, but it can't control the formulationof these policies or control the formulation commonly with other party.Determination of investment costFor the long-term equity investment obtained from the enterprise merger under the same control, the initial investment cost of thelong-term equity investment shall be taken as the share of the book value of the merged party's shareholders' equities/owners' equitiesin the final controlling party's consolidated financial statements on the merger date. As to the difference between initial investment costof long-term equity investments and the book value of the cash paid, non-cash assets transferred and liabilities assumed, it's requiredto adjust the capital reserve correspondingly. In case the capital reserve is insufficient for the offset, it's required to adjust the retainedearnings. In the case of treating issued equity securities as the merger consideration, the share of the book value of the merged party'sshareholders' equities/owners' equities in the consolidated financial statement of the final controlling party is regarded as the initialinvestment cost of long-term equity investment on the merger date; the capital reserves shall be adjusted in accordance with taking thetotal face value of shares issued as share capital, and the difference between the initial investment cost of long-term equity investmentand the total face value of shares issued; in case the capital reserve is insufficient for the offset, it's required to adjust the retainedearnings. The equity of the merged party obtained step by step through several transactions, which finally forms enterprise mergerunder the same control, shall be handled separately according to whether it belongs to "package deal": if it belongs to a "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 a "packagedeal", the share of the book value of the merged party's shareholders' equities/owners' equities in the final controlling party'sconsolidated financial statement on the merger date will be taken as the initial investment cost of long-term equity investment, and thecapital reserves will be adjusted according to the difference between the initial investment cost of long-term equity investment and thesum of book value of long-term equity investment before combination and book value of consideration newly paid for acquiring theshare; in case the capital reserve is insufficient for the offset, it's required to adjust the retained earnings. Other comprehensive incomeof equity investment held before the merger date, which is accounted by equity method or recognized as financial assets measured atthe fair value with their changes 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 the sumof assets paid by the purchasing party, liabilities incurred or assumed, and fair value of issued equity securities. The equity of thepurchased party held obtained step by step through several transactions, which finally forms enterprise merger not under the samecontrol, shall be handled separately according to whether it belongs to "package deal": if it belongs to a "package deal", the accountingtreatment will be carried out by taking transactions as a certain one with control right. If it does not belong to a "package deal", it shalltake the sum of the book value of the original equity investment held by the original purchased party and the newly investment cost asthe initial investment cost of the long-term equity investments under the cost method. If the equity originally held is accounted for byequity 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 issued bySupor, value agreed in the investment contract or agreement, the fair value or original book value of assets surrendered in the non-monetary assets exchange transaction, the fair value of the long-term equity investment, etc. The expenses, taxes and other necessaryexpenditures directly related to the acquisition of the long-term equity investment shall also be included into the investment cost. If thesignificant impact or common control is implemented on the invested unit due to the additional investment, but it does not constitutethe control, the long-term equity investment cost is the sum of fair value of the originally held equity investment determined according
to Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial Instruments and newinvestment cost.
(2) Methods for the subsequent measurement and the profit and loss recognition
Long-term equity investments that have common control (except for joint operators) or significant impact on the invested unit areaccounted by equity method. Besides, the Company's financial statement adopts the cost method to account the long-term equityinvestment 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 shall berecognized 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-termequity investments shall not be adjusted; in case the initial investment cost is less than the shares of fair value of identifiable net assetsof the invested unit that shall be enjoyed during the investment, the difference shall be included into the current profits and losses andthe 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 other comprehensiveincome, and book value of the long-term equity investment shall be adjusted simultaneously. As to the part that shall be enjoyed andcalculated according to the profits or cash dividends announced and distributed by the invested unit, it's required to reduce the bookvalue of long-term equity investment correspondingly. As to other changes in owners' equities of the invested unit except for net profitsand losses, other comprehensive incomes and profit distribution, the book value of the long-term equity investment shall be adjustedand included into the capital reserve. When the shares of net profit or loss of the invested unit that shall be enjoyed are recognized, itshall be based on fair value of each identifiable net asset of the invested unit when the investment is acquired and after the adjustmentis made on net profit of the invested unit. In case the accounting policy and accounting period employed by the invested unit aredifferent from those employed by Supor, financial statements of the invested unit shall be adjusted according to Supor's accountingpolicy and accounting period. Besides, investment income, other comprehensive income, etc. shall be recognized on this basis. Fortransactions between Supor and associated enterprise or joint venture, if the assets launched or sold do not constitute the business, theunrealized internal trading profits and losses shall be offset according to the proportion attributable to Supor, and the investment profitsand losses shall be recognized on this basis. In case the part incurred between Supor and the invested unit without internal transactionloss belongs to the asset impairment loss, it shall not be offset. If the assets invested by Supor to the joint venture or associated enterpriseconstitute the business, and the investor thereupon obtains the long-term equity investment but fails to obtain the control right, the fairvalue of business launched is taken as the initial investment cost of newly long-term equity investment, and the difference between theinitial investment cost and book value of business launched shall be included into the current profits and losses in full. If the assets soldby Supor to the joint venture or associated enterprise constitute the business, the difference between the consideration acquired and thebook value of 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 shall befully 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 invested unit 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 the estimatedobligation that shall be assumed and included into the current investment losses. In case the net profit is realized by the invested unit
later, after Supor makes up the unrecognized loss amount shared by the income amount shared, it's required to recover the revenuerecognition amount shared.(c) Acquisition of minority shareholders' equitiesWhen compiling the consolidated financial statements, the Company shall adjust the capital reserve due to the difference betweenthe newly-increased long-term equity investment from the purchase of the minority shareholders' equities and the net asset sharesenjoyed according to the new shareholding proportion of the subsidiary continuously calculated from the purchase date (or the mergerdate); in case that the capital reserves are not sufficient to offset, the retained earnings shall be adjusted.(d) Disposal of the long-term equity investmentThe 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 loses thecontrol right for subsidiaries due to the partial disposal of the long-term equity investment for subsidiaries, it shall be dealt with inaccordance with the relevant accounting policies as specified in the Note V. "6. Preparation method for consolidated financialstatements (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' equities shallbe accounted for on the same basis as the invested unit's direct disposal of relevant assets or liabilities in a corresponding proportion.However, the owners' equities that are recognized based on the changes in other owners' equities shall be carried forward to the currentprofits and losses in proportion, except for the net profits and losses, other comprehensive incomes and profit 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 the investedunit's direct disposal of the relevant assets or liabilities, and it shall be carried forwarded to the current profits and losses in proportion;except for the net profits and losses, other comprehensive incomes and profit distribution, the changes in other owners' equities in theinvested unit's net assets which are accounted and recognized by the equity method shall be carried forward to the current profits andlosses in proportion.If Supor loses control of the invested unit due to disposal of partial equity investment, and the residual equities after disposal mayexert common control or significant impact on the invested unit while preparing individual financial statements, the equity method willbe adopted for accounting, and it will be measured by the equity method and adjusted with equity method since obtaining; if the residualequities after disposal cannot implement the common control or exert significant impact on the invested unit, the relevant provisionsin respect of the standards of recognition and measurement of financial instruments shall be referenced for the accounting treatment,and the difference between the fair value and book value shall be included into the current profits and losses on the date of losingcontrol. Before Supor acquires the control of the invested unit, for other comprehensive incomes recognized under the equity methodor standards of recognition and measurement of financial instruments, when the control of the invested unit is lost, the accountingtreatment shall be conducted on the same basis of the invested unit's direct disposal of relevant assets or liabilities; the changes in theother owners' equities of the invested unit's net assets other than the net profits and losses, other comprehensive incomes and profitdistribution calculated and recognized by the equity method shall be settled and transferred to the current profits and losses in proportion.Among them, if the residual equities after disposal are calculated by the equity method, other comprehensive incomes and other owners'equities shall be carried forward in proportion; if the residual equities after disposal are to be conducted with accounting treatment inaccordance with the standards of recognition and measurement of financial instruments, other comprehensive incomes and otherowners' 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 financial instruments.The difference between the fair value and book value shall be included into the current profits and losses on the date of losing commoncontrol or significant impact. As for other comprehensive incomes as recognized when the original equity investment is under theequity method, it shall be subject to the accounting treatment on the same basis of the assets or liabilities which are directly disposedby the invested unit when the equity method is abandoned. The owners' equities which are recognized by the investee due to the changesin other owners' equities, except for the net profits and losses, other comprehensive incomes and profit distribution, will be reckonedin 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 as anequity investment of subsidiaries and transaction which has lost the control right. The difference between the disposal price and thecorresponding book value of long-term equity investment will be recognized as the other comprehensive incomes before losing thecontrol right, which will be reckoned in the current profits and losses when the control right is lost.
16. Fixed assets
(1) Recognition condition
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
From the following month when fixed assets reach the estimated applicable state, the depreciation is withdrawn within its servicelife with the straight-line method. Service life, expected net residual value, and annual depreciation rate of all kinds of fixed assets areas follows:
| Categories | Depreciation method | Depreciation life (year) | Residual rate | Annual depreciation rate |
| Buildings and structures | Straight-line method | 20-30 | 3%-10% | 3.00%-4.85% |
| General equipment | Straight-line method | 3-5 | 3%-10% | 18.00%-32.33% |
| Special equipment | Straight-line method | 10 | 3%-10% | 9.00%-9.70% |
| 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 assets afterdeducting 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 NoteV. "21. 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 once occurred.As for each component constituting fixed assets, in case that they have different service life or provide economic interest for Suporby different ways and apply to different rates of depreciation and depreciation methods, Supor recognizes each component as a singlefixed 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 deducted from thedisposal income obtained from the sale, transfer, discard or damage of the fixed asset shall be included into the current profits andlosses.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.
17. 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, andother relevant costs. The construction in progress shall be transferred to the fixed assets when it reaches the expected serviceablecondition.
See more details about the impairment test method and the withdrawing method of impairment provision of construction inprogress in Note V. "21. 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 Enterprises No. 1-- Inventory, etc., the relevant income and cost will be accounted for and included into the current profits and losses.
18. 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 and constructionor production that can be directly attributable to the assets that meet capitalization conditions, the capitalization shall be started whenthe asset expenditure or the borrowing expense has incurred, or the acquisition and construction or production activities necessary formaking the assets available for expected serviceable or marketable state have been started; capitalization shall be stopped when theassets under acquisition and construction or production that meet capitalization conditions reach the expected serviceable condition ormarketable 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 the currentperiod; for the general borrowing, the capitalized amount will be determined after the weighted average of excessive part ofaccumulative asset expenditures compared to the asset expenditure of special borrowing multiplied by the capitalization rate of thegeneral borrowing occupied. The capitalization rate is determined based on the weighted average interest rate of general borrowing.
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 asset acquisitionand construction or production restarts.
19. 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 reliably measured.Other expenditures, except for this, 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 and thebuildings. 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 method withinthe expected service life. Intangible assets with undetermined service life will not be amortized.
Among them, the service life and amortization method of intangible assets of intellectual property right are as follows:
| Item | Amortization period (years) | Amortization method |
| Land use right | 43-50 | Straight-line method |
| Software | 2-10 | Straight-line method |
| Trademark use right | 10 | Straight-line method |
| Pollution discharge right | 5 | 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 economic benefitsfor the enterprise within a foreseeable period, then its service life will be estimated and it will be amortized according to the amortizationpolicy 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 asset havemarket 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 intangible asset,and it is capable of using or selling this intangible asset;
-Expenditure attributable to 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 included intothe 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 in NoteV. "21. Impairment of long-term assets".
20. 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 over theexpected benefit period.
21. Impairment of long-term assets
As for fixed assets, construction in progress, right-of-use assets, intangible assets with a limited service life, investment propertiesmeasured by cost measurement, long-term unamortized expenses, and non-current and non-financial assets such as the long-term equityinvestment and goodwill of subsidiaries, joint ventures and associated enterprises, Supor shall determine whether there is any sign ofimpairment on the balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and impairment testshall be carried out. Goodwill, intangible assets with undetermined service life and intangible assets that have not reached theserviceable 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, impairment provisionshall be accrued according to the difference and included into impairment losses. The recoverable amount shall be determined as thenet amount obtained by the fair value of the asset less the disposal expense, or as the present value of the estimated future cash flow ofassets, whichever is higher. The fair value of the asset is determined according to the price in the sales agreement in the fair transaction;if there is no sales agreement but there is an active market of assets, the fair value is determined according to buyer's price of the asset;if there is no sales agreement and an active market of assets does not exist, the fair value of assets shall be estimated based on the bestinformation obtained. The disposal expenses include the legal fees related to the asset disposal, relevant taxes, carriage expenses aswell as direct expenses for achieving the marketable state status. The present value of the estimated future cash flow of assets shall bedetermined by the discounted amount by an appropriate discount rate, on the basis of the estimated future cash flow generated duringthe continuous usage and final disposal of assets. The impairment provision shall be calculated and recognized on the basis of the singleasset. If it is hard to estimate the recoverable amount of the single asset, the recoverable amount of the asset group shall be determinedby the asset group to which the asset belongs. Asset group refers to the minimum asset portfolio that can generate cash inflowindependently.
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. If thetest results show that the recoverable amount of the asset group or asset group portfolio containing the apportioned goodwill is lowerthan its book value, the corresponding impairment loss shall be recognized. The amount of impairment loss firstly offsets the bookvalue of goodwill apportioned to the asset group or asset group portfolio, and then offsets the book value of other assets in proportionaccording 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.
22. 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 receivable accountas contract liabilities with regard to the actual payment by customers and the due payment, whichever happens earlier. Contract assetsand liabilities under the same contract are listed in net amount, and those under different contracts shall not be offset.
23. 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. Among them:
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, actualshort-term employee remuneration incurred shall be recognized as the liabilities and included into the current profits and losses orrelevant 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 the datewhen Supor recognizes the cost related to restructuring involving payment of termination benefits, whichever is the earlier, theemployee remuneration liabilities caused by termination benefits shall be recognized and included into the current profits and losses.However, if it is expected that the termination benefits cannot be fully paid within twelve months after the annual reporting period isover, 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 services tothe date of normal retirement are included into the current profits and losses (termination benefits) if the recognition conditions ofestimated liabilities are met.
24. Estimated liabilities
If the obligation related to contingencies satisfies the following conditions at the same time, it shall be recognized as the estimatedliabilities: ① This obligation is the current obligation undertaken by Supor; ② Performance of this obligation may make economicbenefits flow out of the enterprise; ③ Amount of this obligation can be reliably measured.
On the balance sheet date, considering the risks, uncertainty, time value of money and other factors related to contingencies,estimated liabilities are measured subject to the optimal estimate value of expenditures needed for the fulfillment of the related existingresponsibilities.
There is a contiguous range for expenditures needed, and within this range, all kinds of results have the same possibility to occur.The optimal estimate is determined according to the median of this range. In other circumstances, the optimal estimate is treated asbelow:
-If the contingency involves with a single item, then the optimal estimate will be determined based on the amount that is most likelyto occur.-If the contingency involves with several items, then the optimal estimate will be determined based on all possible results and theirprobabilities.
If all or part of the expenditures needed for paying off estimated liabilities are compensated by the third party, the compensationamount shall be recognized separately as an asset when recognizing it may be recovered. Recognized compensation amount shall notexceed the book value of estimated liabilities.
(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 executory contract becomes a loss contract, for which the obligation can conform to therecognition conditions of aforesaid estimated liabilities, the part the estimated losses of the contract surpass the recognized impairmentloss (if any) of the underlying asset in the contract will be recognized as estimated liabilities.
(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 aforesaid estimatedliabilities. The restructuring obligation related to partially-sold business will be recognized to be the associated obligation only whenSupor promises to sell partial businesses (namely, signs the binding-force sales agreement).
25. 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-settledshare-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 the equityinstruments granted to the employees at the grant date. The amount of the fair value is included into the relevant cost or expense basedon the optimal estimate of the number of vesting equity instruments in case of completing the service within the waiting period ormeeting the required performance conditions; when the vesting right is granted immediately, the relevant cost or expense is includedon 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 be vested.The impact of the above estimates is included into the current relevant cost or expense, and the capital reserves shall be adjustedaccordingly.
In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of other parties' servicescan be reliably measured, the fair value of other parties' services is measured at the fair value on the date of acquisition; if the fair valueof other parties' services cannot be reliably measured, but the fair value of equity instruments can be measured reliably, it shall bemeasured at the fair value of the equity instruments on the acquisition date, and is included into the relevant cost or expense, andincreases the shareholders' equities accordingly.(b) Cash-settled share-based payment
The cash-settled share-based payment is measured at the fair value of the liabilities determined by Supor based on shares or otherequity instruments. If the vesting right is granted immediately after the grant, such payment will be included into the relevant cost or
expense on the grant date, and the liabilities increase accordingly; if the service within the waiting period must be completed or therequired performance conditions must be met, according to the fair value of the liabilities assumed by Supor, and based on the optimalestimate of the vesting rights on each balance sheet date of the waiting period, the services obtained in the current period are includedinto the cost or expense, and the liabilities increase 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 planWhen Supor modifies the share-based payment plan, if the modification increases the fair value of the equity instruments granted,the increase in the services obtained will be recognized accordingly. The increase of the fair value of equity instruments refers to thedifference between the fair value of the equity instruments before and after the modification on the modification day. If the modificationreduces the total fair value of the share-based payment or adopts other methods that are not conducive to employees, the accountingtreatment of services obtained will be continued, as if the change has never occurred, unless Supor cancels some or all of the equityinstruments granted.During the waiting period, if the equity instrument granted is cancelled, Supor will treat it as an accelerated exercise, and theamount to be recognized in the remaining waiting period will be immediately included into the current profits and losses, and the capitalreserves shall be recognized at the same time. If employees or other parties can choose to meet the non-vesting conditions but fail tomeet in the waiting period, Supor will treat it as a cancellation of the equity instrument.
(3) Accounting treatment of the share-based payment transactions involving Supor and the shareholders or actual controllers of theCompanyFor share-based payment transaction involving Supor or the Company's shareholders or actual controllers, 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 an enterprise accepting service, it shall be recognized as the long-term equityinvestment to the enterprise accepting service according to the fair value of the equity instrument at the grant date or the fair value ofthe liability to be assumed, 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-basedpayment. If the enterprise accepting service has a settlement obligation and the equity instruments granted to the enterprise employeesare not its own equity instrument, such share-based payment transaction shall be treated as the cash-settled share-based payment.
For the share-based payment transactions between the enterprises within Supor, if the enterprise accepting service and thesettlement enterprise are not the same enterprise, the recognition and measurement of the share-based payment transaction in individualfinancial statements of the enterprise accepting service and the settlement enterprise shall be in accordance with the above principles.
26. Revenue
Accounting policies adopted for revenue recognition and measurement
Revenue 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 a contract between Supor and its customerscan meet the following conditions at the same time, the revenue shall be recognized when customers own the relevant control right ofcommodities (including labor service, the same below): all concerned parties have approved the contract and promised to fulfill theirrespective obligations; the contract has specified rights and obligations of each concerned party related to transferred commodities orrendering of services; the contract has clear payment terms and conditions related to transferred commodities; the contract is of thecommercial essence, which means that performance of the contract will change the risk, time distribution or amount of future cash
flow of Supor; the consideration that Supor is entitled to obtain due to the transfer of commodities to customers is likely to be recovered.To obtain the control right of relevant commodities means to be able to lead the use of the commodities and obtain almost all economicbenefits therefrom.
On the contract commencement date, 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 sales priceof the commodity guaranteed in individual performance obligation. Variable consideration, significant financing part in the contract,non-cash consideration, customer consideration payable, etc. have been taken into account the transaction price.For contracts with quality assurance terms and conditions, Supor analyzes the nature of the quality assurance provided by them.If the quality assurance provides a separate service in addition to assuring customers that the commodities sold meet the establishedstandards, 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 or servicesto customers, excluding payments received on behalf of third parties. The transaction price recognized by Supor does not exceed theamount for which it is highly probable that the accumulated recognized revenue will not be reversed significantly when the relevantuncertainty is eliminated.As for each individual performance obligation in the contract, if one of the following conditions is met, Supor shall recognize thetransaction price which is amortized into the individual performance obligation based on the performance progress within a relevantperformance period as the revenue: the customer obtains and consumes the economic benefits while Supor fulfills the performanceobligation; the customer manages to control the commodities in process while Supor fulfills the performance obligation; commoditiesproduced during the performance period have irreplaceable purposes and Supor has the right to receive payment for the performancepart which has been completed so far during the entire contract period. The performance progress shall be confirmed based on thenature of commodities transferred by virtue of the input method or the output method. When the performance progress cannot beconfirmed reasonably, if it is predicted that the incurred cost of Supor can be compensated, the revenue shall be recognized based onthe incurred cost amount until the performance progress can be confirmed reasonably.If one of the above conditions cannot be met, Supor recognizes 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 thecustomer has obtained the control right of the commodity, Supor can consider the following signs: the enterprise has the currentcollection right of the commodity, namely the customer is responsible for current payment obligation of the commodity; the enterprisehas transferred the legal ownership of the commodity to the customer, namely the customer has possessed the legal ownership of thecommodity; the enterprise has transferred the real commodity to the customer, namely the customer has possessed the real commodity;the enterprise has transferred main risks and rewards of the commodity to the customer, namely the customer has obtained the mainrisks and rewards related to the ownership of the commodity; the customer has accepted the commodity; other signs indicating that thecustomer has obtained the control right of the commodity.For sales with sales return terms and conditions, when customers obtain control rights of related commodities, Supor recognizesrevenue according to the consideration amount expected to be received due to the transfer of commodities to customers (i.e., excludingthe amount 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 balance afterdeducting the expected cost of recovering the commodities (including the impairment of the value of the returned commodities) isrecognized as an asset, and the net cost of the above assets is carried forward according to the book value of the transferred commoditiesat the time of transfer. On each balance sheet date, Supor re-estimates the future sales returns, and if there is any change, it will betreated 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 right the commodities has been transferred to the customer. Accordingto the agreement in the sales contract, Supor mainly recognizes the control right of commodities as having been transferred to thecustomer and recognizes relevant commodity revenue when such commodity has left Supor's warehouses or its specified warehouses,
delivered to the customer with acceptance receipt issued, or such commodity has been delivered on board to the sea transport carrierwith the customs declaration for export and bill of lading obtained.Different business modes of similar businesses result in differences in revenue recognition accounting policies.
27. 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 the currentprofits 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 be recognizedas an asset as the contract performance cost: ① The cost is directly related to a current or expected contract, including direct labor,direct materials, manufacturing expenses (or similar expenses), costs borne by the customer and other costs only incurred by thecontract; ② The cost increases Supor's resources to fulfill its performance obligations in the future; ③ The cost is expected to berecovered.
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 related tosuch 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, Supor shallwithdraw 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 by Supor;
-Cost estimated to be occurred for the transfer of the relevant commodities or services.
28. 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 are dividedinto government subsidies concerning assets and government subsidies concerning benefits. The government subsidies obtained bySupor for construction, or forming long-term assets by other ways are defined as government subsidies concerning assets; othergovernment subsidies shall be defined as government subsidies concerning benefits. If the government document does not clear thesubsidy object, the subsidies will be divided based on the following modes into government subsidies concerning benefits andgovernment subsidies concerning assets: ① If the particular item of the subsidies is clear in the government document, it shall make adivision according to the relative proportion of expense amount of the formed assets in the budget of the particular item and the expenseamount included into the cost, review the division ratio at each balance sheet date and make changes if necessary; ② In the governmentdocument, for general terms only for the purpose without specifying the particular item, it will be used as the government subsidiesconcerning benefits. If government subsidies are monetary assets, they shall be measured according to the amount received orreceivable. If not, they shall be measured according to their fair value; if their fair value cannot be reliably obtained, they shall bemeasured at their nominal amount. The government subsidies measured at the nominal amount shall be directly included into thecurrent profits and losses.
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. Thegovernment subsidies measured as the amount receivable shall comply with the following conditions: ① The subsidy receivable hasbeen recognized by the competent government department, or may be reasonably calculated according to the relevant provisions of theformally published financial fund management method, and the estimated amount is free of significant uncertainty; ② It is based on
the initiatively published financial support project by the local financial department and its financial fund management method inaccordance with the regulations of the Decree of Government Information Openness, and this management method shall be favorableto the public (any enterprise qualified can apply), not just to the specified enterprises; ③ The relevant subsidy documents have clearlypromised the appropriation period, and the appropriation of this fund shall be safeguarded by the relevant financial budget, so it can bereasonably 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 subsidy.
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 subsidies concerningbenefits used to compensate future relevant costs or losses will be recognized as deferred income, and included into the current profitsand losses during the period when the related costs or losses are recognized; those used to compensate relevant costs or losses that haveoccurred will be included into the current profits and losses directly.At the same time, government subsidies including those related to assets and incomes will be subject to the accounting treatmentin different parts; for those hard to be differentiated, they shall be taken as government subsidies concerning benefits as a whole.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 the non-operating income and expenditure.If the government subsidies recognized 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. In othercircumstances, they shall be included into the current profits and losses directly.
29. Deferred income tax assets/deferred income tax liabilities
(1) Current income tax
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 adjustment ofthe 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 be determinedaccording to the tax law, shall be used to recognize deferred income tax assets and deferred income tax liabilities with the balance sheetliability 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) at thetime of occurrence, the relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differencesrelated to the investments of subsidiaries, associated enterprises and joint ventures, if Supor can control the time of reversal of thetemporary differences, and the temporary differences are likely not to be reversed in the foreseeable future, the relevant deferred incometax liabilities shall not be recognized. Except for the above exceptions, Supor shall recognize all other deferred income tax liabilitiesincurred 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 profit and taxable income (or deductibleloss) at the time of occurrence, the relevant deferred income tax liabilities and deferred income tax assets shall be recognized separately.In addition, for the deductible temporary differences related to the investment of subsidiaries, associated enterprises and joint ventures,if the temporary differences are not likely to be reversed in the foreseeable future, or it is not likely to obtain the taxable income usedto offset the deductible temporary differences in the future, the relevant deferred income tax assets shall not be recognized. Except for
the above exceptions, Supor shall recognize the deferred income tax assets arising from other deductible temporary differences to theextent that taxable income is likely to be obtained for deducting the deductible temporary 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 deductible lossesand tax deduction.Deferred income tax assets and deferred income tax liabilities shall be measured on the balance sheet date based on the applicabletax 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 income taxassets 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 enterprise merger,and that the current income tax and the deferred income taxes related to other comprehensive incomes or transaction or affairs of directrecording 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 be presentedbased 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 payment bythe same tax collection and administration department or are related to different taxpayer, but in each important period of deferredincome tax assets and liabilities reverse in the future, the involved taxpayer intends to settle the current income tax assets and liabilitiesbased on the net amount or obtain assets and pay off the liabilities at the same time, Supor's deferred income tax assets and deferredincome tax liabilities shall be presented after offsetting.
30. Lease
(1) 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 identified assets under its control in a certain period to get consideration, the contractis 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 event thatany production capacity of the asset or other part of the asset is physically indistinguishable, but it substantially represents the fullcapacity of the asset, and thus enables the customer to have access to almost all the economic benefits arising from the use of the asset.If the supplier of the asset has the substantial right of replacing the asset throughout the period of use, then the asset is not attributed toan identified asset;
-Whether the lessee has the right to acquire almost all the economic benefits arising from the use of the identified asset during theperiod 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 each separatelease separately subject to accounting treatment. If the contract includes lease and non-lease parts at the same time, the lessee and thelessor 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 or beforethe beginning date of the lease term (less the amount of lease incentives already granted), the initial direct expenses incurred, and thecosts expected to be incurred to demolish and remove the leased asset, restore the site where the leased asset is located or restore theleased 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 remaining servicelife of the leased asset. Impairment provisions for right-of-use assets shall be made in accordance with the accounting policies describedin Note V. "21. 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, the incrementalborrowing 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, whichis included into the current profits and losses or relevant asset costs. The variable lease payment not included into the measurement oflease 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 at thepresent 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 of leaseor the actual exercising of the termination of the renewal option or option of termination of lease is inconsistent with the originalassessment result.
When the lease obligation is remeasured, Supor will adjust the book value of right-of-use assets accordingly. If the book value ofright-of-use assets has been reduced to zero, but the lease obligation still needs to be further reduced, Supor will include the remainingamount in the current profits and losses.
Supor has chosen not to recognize the right-of-use asset and lease obligation for short-term lease (with a lease term not exceeding12 months) and low-value asset lease, and includes related lease payment into the current profits and losses or relevant asset costs ineach period during the lease term pursuant to the straight-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 of whetherthe ownership is finally transferred or not. 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 simplified treatmentof 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 recognizes 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 lease receivablesat the time of initial measurement of financing lease receivables. The net investment in a lease is the sum of the present value ofunguaranteed residual value and lease receipt not received yet on the beginning date of the lease term which is subject to discountingat the implicit rate 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 described inNote V. "9. Financial instruments" and 10. "Financial assets impairment". The variable lease payment which is not included into thenet lease investment shall be included into current profits and losses when it actually occurs.
The lease receipts of operating lease are recognized as rent revenue in each period during the lease term in light of straight-linemethod. Supor capitalizes the initial direct expenses incurred in connection with operating leases, apportioned them over the lease termon the same basis as the rent revenue recognition, and included into the current profits and losses by stages. The variable lease paymentwhich is not included into the lease receipt shall be included into current profits and losses when it actually occurs.
31. 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 parties can be an individual or an enterprise.Enterprises that are only controlled by the state but do not have other related party relationships do not constitute related parties.
In addition, the Company also determines related parties of Supor or the Company in accordance with the Administrative Measuresfor the Disclosure of Information of Listed Companies promulgated by the CSRC.
32. Segment reporting
See Note XVI. "1. Segment information" for details of accounting policies related to segment reporting.
33. 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 capital according tothe total amount of the face value of cancelled stocks, and adjust owners' equities according to the difference between the price paid topurchase stocks back (including transaction cost) and the face value of stocks. The part exceeding the total face value shall write downcapital reserve (share capital premium), surplus reserve and undistributed profit. If the price is lower than the total face value, then thepart 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 the capital reserve (share capital premium); thepart lower than their cost shall write down capital reserve (share capital premium), surplus reserve and undistributed profit in sequence.
If Supor repurchases 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) Hedge accounting
Some financial instruments are used as hedging tools by Supor to avoid certain risks. For those hedges meeting requirementsspecified, Supor will deal with them by hedge accounting method. The hedge of Supor is fair value hedge. The hedge for foreignexchange risk of firm commitment is used as fair value hedge by Supor.
The hedging tool and the hedged item are formally specified by Supor at the beginning of hedge with written documents aboutthe hedging relationship, risk management strategy and risk management objectives. In addition, the hedge effectiveness will beassessed continuously by Supor from the beginning of hedge.(a) Fair value hedgeThe gains or losses from the hedging tool specified as fair value hedge with qualification are included into the current profits andlosses. Otherwise, the gains and losses from non-transactional equity instruments (or their components) measured at the fair value withtheir changes included into other comprehensive incomes are included into other comprehensive incomes. The gains or losses formedfrom the hedging risks of the hedged item shall be included into the current profits and losses and the book value of the recognizedhedged items not measured at fair value shall be adjusted simultaneously. The gains or losses of the hedged items that are measured atfair value from hedging risks are included into the current profits and losses and other comprehensive incomes without book valueadjusting.The hedge accounting is terminated when the hedging relationship is revoked by Supor, the hedging tool is expired or sold, thecontract is terminated or exercised, or the condition is out of qualification.
(3) 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 is anorderly transaction under current market conditions; supposes the orderly selling of assets or transfer of liabilities is carried out in themain market of relevant assets or liabilities; supposes the transaction is made in the most favorable market for relevant assets orliabilities when there is no main market. Supor adopts the assumptions that market participants use to maximize their economic benefitswhen 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 other informationto support. Mainly used valuation techniques include market approach, income approach and cost method. In the application ofvaluation techniques, relevant observable input values shall be used first, and unobserved input values can only be used when relevantobservable input values cannot be obtained or it is not feasible to obtain them.
Input values used by Supor for fair value measurement are 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 obtainedon the measurement date and are not adjusted in the active market; second-level input values are the direct or indirect observable inputvalues of relevant assets or liabilities other than the first-level input values; third-level input values are the unobservable input valuesof 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. To measureone's own equity instrument with fair value, it is supposed that this equity instrument is transferred to other market participants on themeasurement date, and further exits after transfer, and the market participant, as the transferee, obtains relevant rights to this instrumentand undertakes corresponding obligations.
34. Change of important accounting policies and estimates
(1) Change of important accounting policies
? Applicable □Not-applicable(a) Accounting Standards for Business Enterprises No. 25- Insurance Contracts (CK[2020] No. 20) (the "New Insurance Standards")and related implementation Q&AThe "New Insurance Standards replaced the Accounting Standards for Business Enterprises No. 25- Original Insurance Contractsand Accounting Standards for Business Enterprises No. 26- Reinsurance Contracts issued in 2006, as well as the Accounting TreatmentRegulations for Insurance Contracts issued in 2009 (CK[2009] No. 15).
There is no insurance related transactions in Supor, and the adoption of the above regulations has not had a significant impact onSupor's financial condition and operating results.(b) According to the Accounting Standards for Business Enterprises Interpretation No. 16 (CK [2022] 31) ("Interpretation No. 16"),"the accounting treatment for deferred income tax related to assets and liabilities arising from individual transactions are not applicableto initial recognition exemption."According to this regulation, for taxable temporary differences and deductible temporary differences related to the initialrecognition of assets or liabilities arising from individual transactions that are neither enterprise merger nor affect accounting profitand taxable income (or deductible loss) at the time of occurrence, according to Accounting Standards for Business Enterprises No. 18-Income Tax,the relevant deferred income tax liabilities and deferred income tax assets shall be recognized separately. Instead, deferredincome tax liabilities or deferred income tax assets will no longer be recognized based on the net amount of taxable temporarydifferences and deductible temporary differences generated.The adoption of the above regulations did not have a significant impact on Supor's financial condition and operating results.
(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 2023 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 | Sales of commodities or rendering of taxable 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, Indonesia Company is taxed at a 22% rate, Vietnam |
| Supor Company 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) and other provisions, business incometax will be levied at a rate of 15% for encouraged industrial enterprises registered and substantially operating in the Hainan Free TradePort 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 2023.According to the Announcement on Preferential Policies on Income Tax for Small and Micro Enterprises and Individual Industrialand Commercial Households issued by the Ministry of Finance and the State Administration of Taxation on March 26, 2023 (CS [2023]No. 6), from January 1, 2023 to December 31, 2024,the part of the annual taxable income of small and micro enterprises that not exceedRMB 1 million will be included into the taxable income at a reduced rate of 25%, and the enterprise income tax will be paid at a taxrate of 20%. 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, 2022to December 31, 2024, the part of the annual taxable income of small and micro enterprises that exceeds RMB 1 million, but does notexceed RMB 3 million will be included into the taxable income at a reduced rate of 25%, and the enterprise income tax will be paid ata tax rate of 20%. Wuhan Recycling and Shanghai Marketing meet the criteria for small low-profit enterprises in 2023, so thepreferential tax rate of 20% is applicable in 2023.VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 61,638.32 | 56,591.47 |
| Cash in bank | 1,370,537,068.31 | 3,215,677,104.23 |
| Other monetary capitals | 489,082,381.52 | 347,407,212.05 |
| Total | 1,859,681,088.15 | 3,563,140,907.75 |
| Including: Deposits overseas | 246,445,549.98 | 207,979,588.92 |
Other remarks
1) On June 30, 2023, the bank deposits with restricted use were frozen for the cancellation of the branch bank account at RMB 0(December 31, 2022: RMB 8,541.04), the amount frozen in the bank account for changes in industrial and commercial legal personsis RMB 0 (December 31, 2022: RMB82,189.64), term deposits pledged for the opening of bankers' acceptances at RMB 0 (December31, 2022: 12,546,000.00), and the remaining bank deposits of RMB 1,370,537,068.31 were not restricted, including term deposit formore than three months of RMB 50,789,657.53.
2) As at June 30, 2023, other monetary capitals at the end of the period included RMB 405,723,750.00 (December 31, 2022: RMB254,129,233.86) of the security for restricted acceptance bills, RMB 948,609.32 (December 31, 2022: RMB 975,570.02) of the securitydeposits for e-commerce platforms, RMB 58,000,000.00 (December 31, 2022: RMB 58,000,000.00) of the security for the deposits ofthe advance payment financing business, and RMB 24,410,022.20 (December 31, 2022: RMB 34,302,408.17) of the non-restrictedcurrency funds of the Alipay wallet, JD wallet, TikTok wallet, securities settlement accounts, futures settlement accounts and Youzanaccount, etc.
3) As at June 30, 2023, the monetary capital deposited by Supor in Vietnam amounted to RMB 229,422,652.39 (December 31, 2022:
equivalent to RMB 193,083,117.24); the monetary capital deposited in Singapore amounted to RMB 4,129,980.76 (December 31, 2022:
amounted to RMB 3,754,734.88); the monetary capital deposited in Indonesia amounted to RMB 12,892,916.83 (December 31, 2022:
equivalent to RMB 11,141,736.80).
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. | 250,129,103.13 | 431,382,527.79 |
| Including: | ||
| - Short-term financial products | 250,129,103.13 | 431,382,527.79 |
| Total | 250,129,103.13 | 431,382,527.79 |
Other remarksAs at June 30, 2023, the financial assets measured at the fair value with their changes included into the current profits and losses werethe financial products purchased by Supor, amounting to RMB 250,000,000.00 (December 31, 2022: RMB 430,000,000.00). Thesefinancial products with floating income, and linked to interest rates and exchange rates, etc., and the corresponding gains from changesin fair value, i.e., RMB 129,103.13 (December 31, 2022: RMB 1,382,527.79), were recognized at the end of the current period.
3. Notes receivable
(1) Details on categories
Unit: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance bill | 20,847,819.64 | 27,325,952.95 |
| Total | 20,847,819.64 | 27,325,952.95 |
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 | 20,847,819.64 | 100.00% | 20,847,819.64 | 27,325,952.95 | 100.00% | 27,325,952.95 | ||||
| Including: | ||||||||||
| Portfolio: bank acceptance bill | 20,847,819.64 | 100.00% | 20,847,819.64 | 27,325,952.95 | 100.00% | 27,325,952.95 | ||||
| Total | 20,847,819.64 | 100.00% | 20,847,819.64 | 27,325,952.95 | 100.00% | 27,325,952.95 |
(2) Notes receivables that the Company pledged at the end of the period
As of June 30, 2023, Supor had no notes receivable pledged (December 31, 2022: None).
(3) 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 | 16,967,274.33 | |
| Total | 16,967,274.33 |
Other remarksOn June 30, 2023, the outstanding notes receivable of Supor was RMB16,967,274.33 (December 31, 2022: RMB22,383,800.87)endorsed to suppliers for settlement of accounts payable were not derecognized mainly because management believes that substantiallyall the risks and rewards of ownership of the notes have not been transferred. The face value of the above outstanding notes receivableis approximately equal to their fair value. These outstanding notes receivable are due within one year.
(4) Notes the Company transferred to accounts receivable due to the drawer's failure to perform thecontract at the end of the periodAs at June 30, 2023, Supor had no notes transferred to accounts receivable due to non-performance of drawers. (December 31, 2022:
None).
4. Accounts receivable
(1) Details on categories
Unit: RMB
| Categories | Closing balance | Opening balance | ||||
| Book balance | Provision for bad | Book | Book balance | Provision for bad debts | Book | |
| debts | value | value | |
Amount
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Accounts receivable for provision for bad debts made on an individual basis | 2,176,088.73 | 0.09% | 393,937.22 | 18.10% | 1,782,151.51 | 41,463.78 | 0.00% | 41,463.78 | 100.00% | |
| Including: | ||||||||||
| Accounts receivable for provision for bad debts made on the basis of portfolio | 2,345,361,969.86 | 99.91% | 94,142,725.31 | 4.01% | 2,251,219,244.55 | 2,008,279,020.67 | 100.00% | 81,760,902.29 | 4.07% | 1,926,518,118.38 |
| Including: | ||||||||||
| Portfolio 1: age portfolio | 2,302,492,998.46 | 98.08% | 94,099,856.34 | 4.09% | 2,208,393,142.12 | 1,929,487,537.03 | 96.07% | 81,682,110.81 | 4.23% | 1,847,805,426.22 |
| Portfolio 2: low-risk portfolio | 42,868,971.40 | 1.83% | 42,868.97 | 0.10% | 42,826,102.43 | 78,791,483.64 | 3.93% | 78,791.48 | 0.10% | 78,712,692.16 |
| Total | 2,347,538,058.59 | 100.00% | 94,536,662.53 | 4.03% | 2,253,001,396.06 | 2,008,320,484.45 | 100.00% | 81,802,366.07 | 4.07% | 1,926,518,118.38 |
Provision for bad debts made on an individual basis:
Unit: RMB
| Name | Closing balance | |||
| Book balance | Provision for bad debts | Provision proportion | Reasons | |
| Customers A | 1,665,526.67 | 166,552.67 | 10.00% | It was expected that the recovery was at risk. |
| Customer B | 314,641.68 | 31,464.17 | 10.00% | It was expected that the recovery was at risk. |
| Customer C | 75,662.72 | 75,662.72 | 100.00% | It was not expected to be recovered, so the provision for bad debts was fully accrued. |
| Customer D | 41,463.78 | 41,463.78 | 100.00% | It was not expected to be recovered, so the provision for bad debts was fully accrued. |
| Customer E | 78,793.88 | 78,793.88 | 100.00% | It was not expected to be recovered, so the provision for bad debts was fully accrued. |
| Total | 2,176,088.73 | 393,937.22 | ||
Provision for bad debts made on the basis of portfolio: portfolio 1: the age portfolio
Unit: RMB
| Name | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year (including 1 year) | 2,296,860,007.40 | 93,015,062.92 | 4.05% |
| 1-2 years (including 2 years) | 4,392,264.97 | 351,381.20 | 8.00% |
| 2-3 years (including 3 years) | 588,566.02 | 88,284.90 | 15.00% |
| 3-4 years (including 4 years) | 10,147.91 | 5,073.96 | 50.00% |
| 4-5 years (including 5 years) | 9,794.00 | 7,835.20 | 80.00% |
| Over 5 years | 632,218.16 | 632,218.16 | 100.00% |
| Total | 2,302,492,998.46 | 94,099,856.34 |
Explanation on the basis for determining such portfolio:
The expected credit loss rate was 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 was made based on the general model of expected credit losses, please disclose therelevant information about the provision for bad debts with reference to the disclosure of other receivables:
□ Applicable ? Not-applicable
Disclosure by ages
Unit: RMB
| Ages | Closing balance |
| Within 1 year (including 1 year) | 2,341,709,147.15 |
| 1-2 years | 4,392,264.97 |
| 2-3 years | 623,484.74 |
| Over 3 years | 813,161.73 |
| 3-4 years | 158,349.42 |
| 4-5 years | 10,136.00 |
| Over 5 years | 644,676.31 |
| Total | 2,347,538,058.59 |
(2) 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 | 81,802,366.07 | 12,624,888.07 | -63,775.08 | 173,183.47 | 94,536,662.53 | |
| Total | 81,802,366.07 | 12,624,888.07 | -63,775.08 | 173,183.47 | 94,536,662.53 | |
Increased provision for bad debts of RMB 173,183.47 for conversion difference in foreign currency statement caused by the change inexchange rate.
(3) Accounts receivable actually written off in current period
Unit: RMB
| Item | Amount |
| Accounts receivable actually written off | 63,775.08 |
Including significant accounts receivable written off:
Unit: RMB
| Entity name | Type of accounts receivable | Amount | Reason | Write-off procedures performed | Whether the amount was from related transactions |
| Customer F | Goods payment | 63,775.08 | Goods payment cannot be recovered because of the Company's capital chain rupture | Approval by the management | No |
| Total | 63,775.08 |
(4) Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
| Entity name | Closing balance of accounts receivable | Proportion in the total closing balance of accounts receivable | Closing balance of provision for bad debts |
| SEB S.A. and its affiliates | 1,451,773,497.70 | 61.84% | 50,813,861.31 |
| Customer G | 374,079,997.03 | 15.93% | 18,723,088.06 |
| Customer H | 58,410,537.53 | 2.49% | 2,964,843.10 |
| Customer I | 44,785,773.38 | 1.91% | 2,239,288.67 |
| Customer J | 27,888,983.90 | 1.19% | 1,396,494.07 |
| Total | 1,956,938,789.54 | 83.36% |
5. Receivables financing
Unit: RMB
| Item | Closing balance | Opening balance |
| Notes receivable | 238,173,347.65 | 235,957,044.34 |
| Total | 238,173,347.65 | 235,957,044.34 |
Other remarksSupor endorses or discounts a portion of its bankers' acceptances depending on its daily fund management needs. Considering theamount and frequency of endorsement or discounting of bankers' acceptances, Supor determines that the objective of this businessmodel is to collect the contractual cash flows and sell the notes receivable at the same time, therefore, such notes receivable areclassified as financial assets at fair value through other comprehensive income and presented as receivables financing.On June 30, 2023, Supor had no pledged receivables financing (December 31, 2022: none).
Changes in receivables financing and its fair value during the period
□ Applicable ? Not-applicable
If receivables financing was made based on the general model of expected credit losses, please disclose the relevant informationabout the impairment provision with reference to the disclosure of other receivables:
□ Applicable ? Not-applicable
Other remarks:
Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
| Item | Closing balance derecognized | Closing balance not derecognized |
| Bank acceptance bill | 3,210,953,970.98 | |
| Total | 3,210,953,970.98 |
Other remarks:
In order to settle part of the payables, Supor endorses the equal amount of undue notes receivable to the suppliers, and the managementof Supor considered that certain undue notes meet the conditions, that is, almost all risks and remuneration pertaining to ownership hadbeen transferred and meanwhile the current obligations of the relevant payables had been fully discharged, thus the relevant notes andpayables were derecognized. The possible greatest loss undertaken by Supor for the continued involvement therein was the amount ofthe undue notes receivable endorsed by Supor to suppliers. The said undue notes receivable would get mature within 1 year.
6. Advance payment
(1) Listing by ages
Unit: RMB
| Ages | Closing balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 200,723,367.83 | 98.11% | 335,655,809.04 | 98.83% |
| 1-2 years | 3,699,381.80 | 1.81% | 3,123,427.28 | 0.92% |
| 2-3 years | 197.55 | 0.00% | 665,000.00 | 0.20% |
| Over 3 years | 167,229.90 | 0.08% | 165,310.70 | 0.05% |
| Total | 204,590,177.08 | 339,609,547.02 | ||
Explanation on reasons of failure in timely settlement of advance payment with over 1 year of account age and important amounts:
Other remarks:
Aging was calculated from the date of confirmation of advance payment.
(2) Advance payment of the top 5 closing balances by prepayment objects
| Entity name | Book balance | Proportion in the balance of advance payment (%) |
| Supplier A | 26,836,352.82 | 13.12% |
| Supplier B | 19,412,625.93 | 9.49% |
| Supplier C | 18,501,358.00 | 9.04% |
| Supplier D | 15,315,007.87 | 7.49% |
| Supplier E | 10,715,306.00 | 5.24% |
| Subtotal | 90,780,650.62 | 44.37% |
7. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 17,444,244.73 | 16,373,697.26 |
| Total | 17,444,244.73 | 16,373,697.26 |
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
| Nature of receivables | Ending book balance | Beginning book balance |
| Deposit as security | 11,817,653.93 | 10,692,374.84 |
| Temporary payment receivable | 6,705,826.23 | 6,434,897.15 |
| Personal deposit | 3,061,056.78 | 2,382,649.26 |
| Tax refund receivable | 744,280.34 | 1,237,388.33 |
| Total | 22,328,817.28 | 20,747,309.58 |
2) Provision for bad debts
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, 2023 | 4,373,612.32 | |||
| Balance on January 1, 2023 in the current period | ||||
| Withdrawal in the current period | 504,792.54 | |||
| Other changes | 6,167.69 | |||
| Balance on June 30, 2023 | 4,884,572.55 |
Other remarksOther changes were due to the increase in bad debt provision of RMB6,167.69 for translation differences in foreign currency statementsas a result of exchange rate changes.Changes in book balance of loss provision due to significant changes in the current period
□ Applicable ? Not-applicable
Disclosure by ages
Unit: RMB
| Ages | Closing balance |
| Within 1 year (including 1 year) | 15,329,820.73 |
| 1-2 years | 2,287,510.49 |
| 2-3 years | 1,157,119.45 |
| Over 3 years | 3,554,366.61 |
| 3-4 years | 1,069,250.62 |
| 4-5 years | 587,355.32 |
| Over 5 years | 1,897,760.67 |
| Total | 22,328,817.28 |
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 of other receivables | 4,373,612.32 | 504,792.54 | 6,167.69 | 4,884,572.55 | ||
| Total | 4,373,612.32 | 504,792.54 | 6,167.69 | 4,884,572.55 | ||
4) 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 K | Temporary payment receivable | 1,626,035.36 | Within 1 year | 7.28% | 81,301.77 |
| Customer L | Temporary paragraph receivable/deposit as security | 1,503,988.38 | Within 1 year-4 years | 6.74% | 238,199.42 |
| Customer M | Deposit as security | 1,356,870.27 | Within 1 year | 6.08% | 67,843.51 |
| Customer N | Temporary payment receivable | 1,312,040.00 | Within 1 year | 5.88% | 65,602.00 |
| Customer O | Temporary payment receivable | 1,305,031.93 | Within 1 year | 5.84% | 65,251.60 |
| Total | 7,103,965.94 | 31.82% | 518,198.30 |
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
(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 | 384,132,757.00 | 15,281,685.54 | 368,851,071.46 | 446,471,515.87 | 14,369,922.27 | 432,101,593.60 |
| Unfinished products | 84,031,630.27 | 84,031,630.27 | 84,088,800.88 | 84,088,800.88 | ||
| Finished products | 1,409,794,085.57 | 22,071,918.90 | 1,387,722,166.67 | 1,885,938,291.03 | 19,558,744.71 | 1,866,379,546.32 |
| Low value consumables | 87,444,342.45 | 136,408.25 | 87,307,934.20 | 101,274,579.44 | 379,610.26 | 100,894,969.18 |
| Packing materials | 9,461,726.98 | 9,461,726.98 | 11,457,946.44 | 11,457,946.44 | ||
| Total | 1,974,864,542.27 | 37,490,012.69 | 1,937,374,529.58 | 2,529,231,133.66 | 34,308,277.24 | 2,494,922,856.42 |
(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 | 14,369,922.27 | 5,466,497.29 | 260,065.17 | 4,814,799.19 | 15,281,685.54 | |
| Finished products | 19,558,744.71 | 11,616,206.15 | 131,428.69 | 9,234,460.65 | 22,071,918.90 | |
| Low value consumables | 379,610.26 | 243,202.01 | 136,408.25 | |||
| Total | 34,308,277.24 | 17,082,703.44 | 391,493.86 | 14,292,461.85 | 37,490,012.69 | |
Other remarks:
There was an increased inventory depreciation reserves of RMB 391,493.86 for conversion difference in foreign currency statementcaused by the change in exchange rate.
9. Non-current assets due within one year
Unit: RMB
| Item | Closing balance | Opening balance |
| Other debt investments due within one year | 303,175,671.23 | 32,157,534.25 |
| Total | 303,175,671.23 | 32,157,534.25 |
Important debt investments/other debt investments
Unit: RMB
| Creditor's items | Closing balance | Opening balance | ||||||
| Face value | Coupon rate | Effective interest rate | Expiry date | Face value | Coupon rate | Effective interest rate | Expiry date | |
| The Company - Bank of China negotiable certificates of deposit | 30,000,000.00 | 3.50% | 3.34% | December 11, 2023 | 30,000,000.00 | 3.50% | 3.34% | December 11, 2023 |
| The Company - Bank of China negotiable certificates of deposit | 40,000,000.00 | 3.85% | 3.71% | March 24, 2024 | ||||
| The Company - Bank of China negotiable certificates of deposit | 60,000,000.00 | 3.85% | 3.73% | April 16, 2024 | ||||
| The Company - Bank of China negotiable certificates of deposit | 10,000,000.00 | 3.85% | 3.80% | April 2, 2024 | ||||
| The Company - Bank of China negotiable certificates of deposit | 60,000,000.00 | 3.85% | 3.78% | March 25, 2024 | ||||
| The Company - Bank of China negotiable certificates of deposit | 20,000,000.00 | 3.85% | 3.78% | April 9, 2024 | ||||
| Shaoxing Supor - Bank of China negotiable certificates of deposit | 30,000,000.00 | 3.85% | 3.57% | February 4, 2024 | ||||
| Shaoxing Supor - Bank of China negotiable certificates of deposit | 30,000,000.00 | 3.85% | 3.57% | February 4, 2024 | ||||
| Total | 280,000,000.00 | 30,000,000.00 | ||||||
10. Other current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Return cost receivable | 9,998,719.65 | 14,266,301.12 |
| Creditable VAT | 57,221,356.01 | 49,236,636.79 |
| Term deposit | 220,760,000.00 | 381,101,095.89 |
| Others | 14,758,329.46 | 6,381,982.96 |
| Total | 302,738,405.12 | 450,986,016.76 |
Other remarks:
Term deposits were for the purpose of earning interest, on June 30, 2023, of which: the principal of term deposits for more than threemonths was RMB 200,000,000.00 (December 31, 2022: RMB 350,000,000.00) and the interest receivable was RMB 20,760,000.00(December 31, 2022: RMB 31,101,095.89).
11. Other debt investments
Unit: RMB
| Item | Opening balance | Accrued interest | Fair value changes in the current period | Closing balance | Cost | Accumulated fair value changes | Loss provisions that were cumulatively determined in other comprehensive incomes | Remarks |
| Negotiable certificates of deposit | 1,056,952,424.68 | 54,670,493.15 | 1,103,225,054.80 | 1,048,554,561.65 | ||||
| Minus: Part due within one year | -32,157,534.25 | -24,621,109.58 | -303,175,671.23 | -278,554,561.65 | ||||
| Total | 1,024,794,890.43 | 30,049,383.57 | 800,049,383.57 | 770,000,000.00 |
Other important debt investment
Unit: RMB
| Other creditors' rights items | Closing balance | Opening balance | ||||||
| Face value | Coupon rate | Effective interest rate | Expiry date | Face value | Coupon rate | Effective interest rate | Expiry date | |
| Shaoxing Supor Housewares - China Guangfa Bank negotiable certificates of deposit | 200,000,000.00 | 3.55% | 3.43% | April 21, 2025 | 200,000,000.00 | 3.55% | 3.43% | April 21, 2025 |
| Shaoxing Supor Housewares - China Guangfa Bank negotiable certificates of deposit | 50,000,000.00 | 3.55% | 3.36% | March 11, 2025 | 50,000,000.00 | 3.55% | 3.36% | March 11, 2025 |
| Shaoxing Supor Housewares - China Guangfa Bank negotiable certificates of deposit | 100,000,000.00 | 3.45% | 3.34% | July 25, 2025 | 100,000,000.00 | 3.45% | 3.34% | July 25, 2025 |
| Shaoxing Supor Housewares - Bank of Ningbo negotiable certificates of deposit | 20,000,000.00 | 3.40% | 3.29% | October 17, 2025 | 20,000,000.00 | 3.40% | 3.29% | October 17, 2025 |
| Shaoxing Supor Housewares - China Guangfa Bank negotiable certificates of deposit | 100,000,000.00 | 3.45% | 3.30% | July 28, 2025 | 100,000,000.00 | 3.45% | 3.30% | July 28, 2025 |
| Shaoxing Supor Housewares - China Guangfa Bank negotiable certificates of deposit | 100,000,000.00 | 3.45% | 3.22% | August 4, 2025 | 100,000,000.00 | 3.45% | 3.22% | August 4, 2025 |
| Shaoxing Supor - Bank of Ningbo negotiable certificates of deposit | 10,000,000.00 | 3.55% | 3.30% | November 10, 2024 | 10,000,000.00 | 3.55% | 3.30% | November 10, 2024 |
| Shaoxing Supor - Bank of China negotiable certificates of deposit | 50,000,000.00 | 3.35% | 3.20% | January 6, 2025 | ||||
| Shaoxing Supor - Bank of China negotiable certificates of deposit | 140,000,000.00 | 3.35% | 3.32% | March 3, 2025 | ||||
| The Company - Bank of China negotiable certificates of deposit | 40,000,000.00 | 3.85% | 3.71% | March 24, 2024 | ||||
| The Company - Bank of China negotiable certificates of deposit | 60,000,000.00 | 3.85% | 3.73% | April 16, 2024 | ||||
| The Company - Bank of China negotiable certificates of deposit | 10,000,000.00 | 3.85% | 3.80% | April 2, 2024 | ||||
| The Company - Bank of China negotiable certificates of deposit | 60,000,000.00 | 3.85% | 3.78% | March 25, 2024 | ||||
| The Company - Bank of China negotiable certificates of deposit | 20,000,000.00 | 3.85% | 3.78% | April 9, 2024 | ||||
| Shaoxing Supor- Bank of China negotiable certificates of deposit | 30,000,000.00 | 3.85% | 3.57% | February 4, 2024 | ||||
| Shaoxing Supor - Bank of China negotiable certificates of deposit | 30,000,000.00 | 3.85% | 3.57% | February 4, 2024 | ||||
| Shaoxing Supor Housewares - China Guangfa Bank negotiable certificates of deposit | 150,000,000.00 | 3.35% | 3.21% | August 4, 2025 | ||||
| Shaoxing Supor Housewares - ICBC negotiable certificates of deposit | 15,000,000.00 | 3.35% | 3.23% | March 30, 2025 | ||||
| Total | 770,000,000.00 | 995,000,000.00 |
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable ? Not-applicable
12. Long-term equity investment
Unit: RMB
| Invested unit | Opening balance (Book value) | Increase/decrease | Closing balance (Book value) | Closing balance of impairment provision | |||||||
| Add Investment | 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. | 62,196,139.53 | -432,266.96 | 61,763,872.57 | ||||||||
| Subtotal | 62,196,139.53 | -432,266.96 | 61,763,872.57 | ||||||||
| Total | 62,196,139.53 | -432,266.96 | 61,763,872.57 | ||||||||
13. Fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 1,252,394,688.18 | 1,303,075,391.03 |
| Total | 1,252,394,688.18 | 1,303,075,391.03 |
(1) Fixed assets
Unit: RMB
| Item | Buildings and structures | General equipment | Special equipment | Transport facilities | Total |
| I. Original Book Value: | |||||
| 1. Opening balance | 1,223,555,061.57 | 296,185,619.01 | 970,045,460.97 | 32,943,632.66 | 2,522,729,774.21 |
| 2. Increase | 1,550,178.51 | 8,815,816.01 | 4,067,879.31 | 3,438,389.51 | 17,872,263.34 |
| (1) Acquisition | 372,898.97 | 8,787,365.93 | 3,299,085.68 | 3,438,389.51 | 15,897,740.09 |
| (2) Transferred in from construction in progress | 1,177,279.54 | 28,450.08 | 768,793.63 | 1,974,523.25 | |
| (3) Increase from enterprise merger | |||||
| 3. Decrease | 3,614,180.06 | 3,635,004.22 | 11,075,804.71 | 2,662,973.91 | 20,987,962.90 |
| (1) Disposal or scrapping | 3,614,180.06 | 3,561,037.09 | 11,075,804.71 | 2,662,973.91 | 20,913,995.77 |
| (2) Transfer into construction in progress | 73,967.13 | 73,967.13 | |||
| 4. Impact of change in exchange rate | 1,262,771.33 | 353,818.22 | 2,540,159.29 | 135,860.72 | 4,292,609.56 |
| 5. Closing balance | 1,222,753,831.35 | 301,720,249.02 | 965,577,694.86 | 33,854,908.98 | 2,523,906,684.21 |
| II. Accumulated Depreciation | |||||
| 1. Opening balance | 374,701,516.70 | 215,850,570.93 | 602,573,724.20 | 26,528,571.35 | 1,219,654,383.18 |
| 2. Increase | 22,106,976.50 | 13,713,752.77 | 29,351,870.90 | 1,428,489.61 | 66,601,089.78 |
| (1) Provision | 22,106,976.50 | 13,713,752.77 | 29,351,870.90 | 1,428,489.61 | 66,601,089.78 |
| 3. Decrease | 1,543,896.00 | 3,268,346.66 | 10,267,263.15 | 1,640,901.09 | 16,720,406.90 |
| (1) Disposal or | 1,543,896.00 | 3,268,346.66 | 10,267,263.15 | 1,640,901.09 | 16,720,406.90 |
| scrapping | |||||
| 4. Impact of change in exchange rate | 447,980.64 | 248,278.08 | 1,167,939.95 | 112,731.30 | 1,976,929.97 |
| 5. Closing balance | 395,712,577.84 | 226,544,255.12 | 622,826,271.90 | 26,428,891.17 | 1,271,511,996.03 |
| III. Impairment Provision | |||||
| IV. Book Value | |||||
| 1. Closing book value | 827,041,253.51 | 75,175,993.90 | 342,751,422.96 | 7,426,017.81 | 1,252,394,688.18 |
| 2. Opening book value | 848,853,544.87 | 80,335,048.08 | 367,471,736.77 | 6,415,061.31 | 1,303,075,391.03 |
(2) Fixed assets with certificate of titles unsettled
Unit: RMB
| Item | Book value | Reasons for unsettlement |
| Multi-purpose Dormitory Hall of Shaoxing Supor | 35,402,162.21 | 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 | 25,974,307.78 | 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 | 23,846,757.31 | 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 | 28,479,045.29 | After all projects were completed, and the completion and settlement procedures were fulfilled, the property ownership certificate shall be processed uniformly |
| Multi-purpose Canteen Hall of Shaoxing Supor | 11,794,005.15 | 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 | 12,065,584.66 | 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 | 1,138,627.81 | 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 | 15,681,254.01 | 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 | 23,927,041.58 | 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 | 41,578,209.23 | 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 | 870,216.27 | 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 | 1,427.89 | Transfer procedures of land use right certificate were not settled due to land ownership issue |
| Water pump building and structures of P&R Products | 84,161.20 | Transfer procedures of land use right certificate were not settled due to land ownership issue |
| Extended plant for bakelite workshop of P&R Products | 185,765.51 | Transfer procedures of land use right certificate were not settled due to land ownership issue |
| Polishing workshop of P&R Products | 89,280.00 | Transfer procedures of land use right certificate were not settled due to land ownership issue |
| Total | 221,117,845.90 |
14. Construction in progress
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 16,386,809.27 | 12,005,654.73 |
| Total | 16,386,809.27 | 12,005,654.73 |
(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 | |
| Piecemeal projects | 4,211,093.30 | 4,211,093.30 | 82,038.73 | 82,038.73 | ||
| Equipment payment | 1,161,148.97 | 1,161,148.97 | 909,049.00 | 909,049.00 | ||
| Warehouse project of Shaoxing Supor | 11,014,567.00 | 11,014,567.00 | 11,014,567.00 | 11,014,567.00 | ||
| Total | 16,386,809.27 | 16,386,809.27 | 12,005,654.73 | 12,005,654.73 | ||
(2) Changes in significant projects
Unit: RMB
| Items | Budgets | Opening balance | Increase | Transferred to fixed assets | Other decrease | Closing balance | Accumulated investment to budget | Completion percentage (%) | Accumulated amount of borrowing cost capitalization | Including: Amount of interest capitalization in current period | Interest capitalization rate in current period | Capital source |
| Piecemeal projects | 82,038.73 | 5,353,327.92 | 1,224,273.25 | 4,211,093.30 | Self-owned capital | |||||||
| Equipment payment | 909,049.00 | 1,002,350.00 | 750,250.00 | 1,161,148.97 | Self-owned capital | |||||||
| Warehouse project of Shaoxing Supor | 13,578,353.00 | 11,014,567.00 | 11,014,567.00 | 81.12% | 81.12% | Self-owned capital | ||||||
| Total | 13,578,353.00 | 12,005,654.73 | 6,355,677.92 | 1,974,523.25 | 16,386,809.27 |
15. Right-of-use assets
Unit: RMB
| Item | Buildings and structures | Land | Total |
| I. Original Book Value | |||
| 1. Opening balance | 263,207,787.03 | 3,228,879.08 | 266,436,666.11 |
| 2. Increase | 33,274,002.52 | 33,274,002.52 | |
| 3. Decrease | 20,794,628.41 | 20,794,628.41 | |
| 4. Exchange rate effect | 86,943.40 | 103,606.63 | 190,550.03 |
| 5. Closing balance | 275,774,104.54 | 3,332,485.71 | 279,106,590.25 |
| II. Accumulated Depreciation | |||
| 1. Opening balance | 75,512,489.83 | 205,213.46 | 75,717,703.29 |
| 2. Increase | 17,956,059.41 | 45,652.22 | 18,001,711.63 |
| (1) Provision | 17,956,059.41 | 45,652.22 | 18,001,711.63 |
| 3. Decrease | 4,209,908.96 | 4,209,908.96 | |
| (1) Disposal | 4,209,908.96 | 4,209,908.96 | |
| 4. Exchange rate effect | 17,491.67 | 5,803.01 | 23,294.68 |
| 5. Closing balance | 89,276,131.95 | 256,668.69 | 89,532,800.64 |
| III. Impairment Provision | |||
| IV. Book Value | |||
| 1. Closing book value | 186,497,972.59 | 3,075,817.02 | 189,573,789.61 |
| 2. Opening book value | 187,695,297.20 | 3,023,665.62 | 190,718,962.82 |
16. Intangible assets
(1) Details
Unit: RMB
| Item | Land use right | Trademark use right | Software | Pollution discharge right | Total |
| I. Original Book Value | |||||
| 1. Opening balance | 475,027,652.21 | 47,328,811.32 | 98,175,198.47 | 620,531,662.00 | |
| 2. Increase | 2,451,105.34 | 9,894,760.97 | 12,345,866.31 | ||
| (1) Acquisition | 2,451,105.34 | 9,894,760.97 | 12,345,866.31 | ||
| (2) In-house R&D | |||||
| (3) Increase from enterprise merger | |||||
| 3. Decrease | 175,230.74 | 175,230.74 |
| (1) Disposal | 175,230.74 | 175,230.74 | |||
| 4. Impact of change in exchange rate | 195,140.48 | 46,845.06 | 241,985.54 | ||
| 5. Closing balance | 475,222,792.69 | 47,328,811.32 | 100,497,918.13 | 9,894,760.97 | 632,944,283.11 |
| II. Accumulated Amortization | |||||
| 1. Opening balance | 98,466,631.62 | 33,085,117.90 | 48,962,179.32 | 180,513,928.84 | |
| 2. Increase | 4,988,679.50 | 2,366,440.57 | 4,852,728.24 | 989,476.10 | 13,197,324.41 |
| (1) Provision | 4,988,679.50 | 2,366,440.57 | 4,852,728.24 | 989,476.10 | 13,197,324.41 |
| 3. Decrease | 175,230.74 | 175,230.74 | |||
| (1) Disposal | 175,230.74 | 175,230.74 | |||
| 4. Impact of change in exchange rate | 70,194.98 | 33,891.51 | 104,086.49 | ||
| 5. Closing balance | 103,525,506.10 | 35,451,558.47 | 53,673,568.33 | 989,476.10 | 193,640,109.00 |
| III. Impairment Provision | |||||
| IV. Book Value | |||||
| 1. Closing book value | 371,697,286.59 | 11,877,252.85 | 46,824,349.80 | 8,905,284.87 | 439,304,174.11 |
| 2. Opening book value | 376,561,020.59 | 14,243,693.42 | 49,213,019.15 | 440,017,733.16 |
At the end of the current period, the proportion of intangible assets formed through internal R&D in the balance of intangible assetswas 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 | 115,125,700.89 | 24,560,522.85 | 104,854,363.88 | 23,059,580.50 |
| Profits not realized by internal transaction | 70,134,220.01 | 16,985,534.50 | 80,178,943.70 | 19,496,741.80 |
| Deductible losses | 47,486,329.98 | 11,609,800.16 | 16,402,564.88 | 3,626,289.50 |
| Accrued expenses | 1,245,872,901.05 | 300,889,298.42 | 1,349,115,519.54 | 326,749,720.17 |
| Accrued salary | 33,580,670.58 | 8,395,167.65 | 42,347,931.51 | 10,586,982.88 |
| Estimated liabilities | 12,085,095.50 | 1,812,764.33 | 12,640,441.72 | 1,896,066.26 |
| Share-based payment | 82,035,458.08 | 18,887,300.93 | 51,889,706.92 | 12,000,187.47 |
| Expected returns | 6,212,408.79 | 1,483,959.74 | 8,355,059.11 | 2,052,992.64 |
| Lease obligation | 196,948,156.82 | 48,823,611.46 | 198,844,124.74 | 48,991,135.15 |
| Total | 1,809,480,941.70 | 433,447,960.04 | 1,864,628,656.00 | 448,459,696.37 |
(2) Un-offset deferred income tax liabilities
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Right-of-use assets | 189,573,789.61 | 47,001,133.15 | 190,718,962.82 | 46,986,767.52 |
| 合计 | 189,573,789.61 | 47,001,133.15 | 190,718,962.82 | 46,986,767.52 |
(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 beginning 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 | 47,001,133.15 | 386,446,826.89 | 46,986,767.52 | 401,472,928.85 |
| Deferred income tax liabilities | 47,001,133.15 | 46,986,767.52 |
(4) Detail about unrecognized deferred income tax assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 21,785,546.88 | 15,629,891.75 |
| Deductible losses | 31,090,395.45 | 28,216,721.82 |
| Total | 52,875,942.33 | 43,846,613.57 |
(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 | 2,873,673.63 | ||
| Total | 31,090,395.45 | 28,216,721.82 |
18. Notes payable
Unit: RMB
| Type | Closing balance | Opening balance |
| Bank acceptance bill | 1,395,862,500.00 | 1,057,611,900.00 |
| Total | 1,395,862,500.00 | 1,057,611,900.00 |
Other remarksAll of the above amounts represent notes payable due within one year, the amount of due unpaid notes payable was RMB 0.00 at theend of the current period.
19. Accounts payable
(1) Details
Unit: RMB
| Item | Closing balance | Opening balance |
| Goods payment | 1,230,849,669.91 | 1,274,889,065.48 |
| Equipment and engineering funds | 32,782,753.65 | 67,104,579.12 |
| Expenses payment | 1,232,773,577.43 | 1,293,527,903.59 |
| Total | 2,496,406,000.99 | 2,635,521,548.19 |
Other remarks:
As at June 30, 2023, Supor had no significant accounts payable with an age of more than one year (December 31, 2022: None).
20. Contract liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances on sales | 480,254,227.80 | 1,153,932,879.53 |
| Total | 480,254,227.80 | 1,153,932,879.53 |
Unit: RMB
| Item | Variation amount | Variation reason |
| Advances on sales | -1,153,932,879.53 | Including the revenue recognized by the amount of book value of contract liabilities at the beginning of the year |
| Advances on sales | 480,254,227.80 | The amount increased due to receipt of cash (excluding the amount recognized as revenue in the current year) |
| Total | -673,678,651.73 |
21. Employee remunerations payable
(1) Details
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| I. Short-term Employee Remuneration | 282,609,935.60 | 803,028,890.22 | 862,803,206.31 | 222,835,619.51 |
| II. Post-employment Benefits - Defined | 5,885,187.48 | 49,626,892.19 | 49,245,042.83 | 6,267,036.84 |
| Contribution Plan | ||||
| III. Termination Benefit | 580,305.42 | 185,949.52 | 355,150.87 | 411,104.07 |
| Total | 289,075,428.50 | 852,841,731.93 | 912,403,400.01 | 229,513,760.42 |
(2) Details of short-term employee remuneration
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Salary, bonus, allowance and subsidy | 238,523,830.57 | 712,337,196.96 | 770,116,251.42 | 180,744,776.11 |
| 2. Employee services and benefits | 3,768,543.21 | 35,310,155.44 | 36,265,432.01 | 2,813,266.64 |
| 3. Social insurance charges | 4,059,152.74 | 26,285,014.77 | 26,326,563.33 | 4,017,604.18 |
| premium | 316,180.86 | 1,884,881.88 | 1,921,554.57 | 279,508.17 |
| Medical and Maternity insurance premium | 3,742,971.88 | 24,400,132.89 | 24,405,008.76 | 3,738,096.01 |
| 4. Housing accumulation fund | 163,804.08 | 21,364,095.85 | 21,341,685.55 | 186,214.38 |
| 5. Trade union fund and employee education fund | 36,094,605.00 | 7,732,427.20 | 8,753,274.00 | 35,073,758.20 |
| Total | 282,609,935.60 | 803,028,890.22 | 862,803,206.31 | 222,835,619.51 |
Other remarks:
On March 25, 2019, the General Office of the State Council published the Opinions on Comprehensively Promoting the Merger andImplementation of Maternity Insurance and Employee Basic Medical Insurance to promote the merger and implementation of the twotypes of insurance.
(3) Details of defined contribution plan
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic endowment insurance | 5,684,246.20 | 48,053,674.41 | 47,683,344.82 | 6,054,575.79 |
| 2. Unemployment insurance premium | 200,941.28 | 1,573,217.78 | 1,561,698.01 | 212,461.05 |
| Total | 5,885,187.48 | 49,626,892.19 | 49,245,042.83 | 6,267,036.84 |
(4) Termination benefit
Supor's termination benefits due to rescinding labor relations during the reporting period were RMB 355,150.87 (the same period in2022: RMB 9,216,701.11), and the outstanding amount payable at the end of the period was RMB 411,104.07 (December 31, 2022:
RMB 580,305.42).
22. Taxes payable
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT | 20,167,342.75 | 29,951,962.61 |
| Enterprise income tax | 123,671,132.75 | 141,680,509.34 |
| Individual income tax | 2,700,726.31 | 3,309,618.70 |
| Urban maintenance and construction tax | 4,786,540.13 | 5,065,611.60 |
| Housing property tax | 5,629,315.21 | 10,036,243.48 |
| Land use tax | 4,479,469.56 | 6,702,356.53 |
| Stamp tax | 3,991,774.24 | 4,127,604.37 |
| Education surcharge | 2,053,509.20 | 2,201,227.48 |
| Local education surcharge | 1,389,170.52 | 1,533,579.16 |
| Total | 168,868,980.67 | 204,608,713.27 |
23. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other payables | 139,535,730.90 | 137,729,222.63 |
| Total | 139,535,730.90 | 137,729,222.63 |
(1) Other payables
1) Listing by nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Deposit as security | 107,553,491.57 | 99,096,157.97 |
| Temporary receipts payable | 12,103,726.46 | 21,538,362.25 |
| Others | 19,878,512.87 | 17,094,702.41 |
| Total | 139,535,730.90 | 137,729,222.63 |
24. Non-current liabilities due within one year
Unit: RMB
| Item | Closing balance | Opening balance |
| Lease obligations due within one year | 45,009,692.66 | 41,924,940.24 |
| Total | 45,009,692.66 | 41,924,940.24 |
25. Other current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Refund payable | 16,211,128.43 | 22,621,360.23 |
| Endorsed bank acceptance bill unrecognized | 16,967,274.33 | 22,383,800.87 |
| Output tax to be written-off | 61,606,353.03 | 149,694,451.88 |
| Total | 94,784,755.79 | 194,699,612.98 |
26. Lease obligation
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term lease obligations | 187,365,120.99 | 192,704,856.82 |
| Minus: Lease obligations due within one year | -45,009,692.66 | -41,924,940.24 |
| Total | 142,355,428.33 | 150,779,916.58 |
Other remarks:
Supor also rented 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.
27. Long-term employee remunerations payable
(1) Details
Unit: RMB
| Item | Closing balance | Opening balance |
| II. Termination Benefit | 1,255,162.03 | 1,441,111.55 |
| Total | 1,255,162.03 | 1,441,111.55 |
28. Estimated liabilities
Unit: RMB
| Item | Closing balance | Opening balance | Reasons for the balance |
| Pending lawsuit | 10,688,727.50 | 11,150,000.00 | For details, please refer to Note XIV. "Commitments and Contingencies" |
| Financial guarantee contract | 1,396,368.00 | 1,490,441.72 | For details, please refer to Note XIV. "Commitments and Contingencies" |
| Total | 12,085,095.50 | 12,640,441.72 |
29. Share capital
Unit: RMB
| Opening balance | Increase/decrease in the period (+, -) | Closing balance | |||||
| New shares | Shares bonus | Converted capital | Others | Subtotal | |||
| Total shares | 808,654,476.00 | -1,945,819.00 | -1,945,819.00 | 806,708,657.00 |
Other remarks:
The decrease in share capital in this year was RMB 1,945,819.00, including the repurchase and deregistration of 75,750 restrictedshares from the separated equity incentive objects at the price of RMB 1 per share, resulting in the corresponding decrease of sharecapital in the amount of RMB 75,750.00. The 19
thSession of the Seventh Board of Directors of the Company reviewed and adoptedthe Proposal on Terminating the Public Shares Repurchase Plan. It decided to terminate the implementation of the Proposal on PublicShares Repurchase Plan adopted by the Annual General Meeting of Shareholders for 2021 Fiscal Year. A total of 1,870,069repurchased shares was cancelled, resulting in the corresponding decrease of share capital by RMB 1,870,069.00.
30. Capital reserve
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Other capital reserve | 125,368,989.44 | 26,960,674.13 | 152,329,663.57 | |
| Total | 125,368,989.44 | 26,960,674.13 | 152,329,663.57 |
Other remarks (including increase and decrease in current period and variation reason):
1) The increase of RMB 26,960,674.13 in other capital reserves in the current period refers to ① The equity-settled share-basedpayment amount of RMB 26,177,298.00 in the current period included in the capital reserve (other capital reserves), as detailed in NoteXIII. "Description of Share-based Payment" to these financial statements. ② The estimated deductible amount of the share-basedpayment in the future of this year exceeded the cost recognized in the waiting period. The deferred income tax assets formed by theexcess of RMB 783,376.13 were directly included into the capital reserve - other capital reserves.
31. Treasury shares
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| treasury share | 99,724,823.49 | 230,205,750.50 | 91,733,144.12 | 238,197,429.87 |
| Total | 99,724,823.49 | 230,205,750.50 | 91,733,144.12 | 238,197,429.87 |
Other remarks (including increase and decrease in current period and variation reason):
1) The 12
thSession of the Seventh Board of Directors of the Company and the Annual General Meeting of Shareholders for 2021 FiscalYear reviewed and adopted the Proposal on Public Shares Repurchase Plan. The Company planned to use its own funds to buy backits shares for the write-off and decrease of the registered capital and the implementation of equity incentives. The increase in this yearwas that the Company repurchased 1,545,000 shares of the Company from the secondary market in the form of centralized competitivetrading during the reporting period, totaling RMB 79,937,608.83, and the repurchase handling fee was RMB 8,073.73.
2) The 19
thSession of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2022 Fiscal Year of theCompany reviewed and adopted the Proposal on Public Shares Repurchase Plan. The Company planned to use self-owned capital tobuy back its shares for the write-off and decrease of the registered capital and the implementation of equity incentives. The increase inthe current period was that, during the reporting period, the Company repurchased 3,160,000 shares of the Company from the secondarymarket by way of centralized competitive bidding transactions, amounting to RMB 150,244,885.00, plus a repurchase handling fee ofRMB 15,182.94.
3) The annual decrease of the treasury share capital was RMB 91,733,144.12. ① The 19
thSession of the Seventh Board of Directorsof the Company reviewed and adopted the Proposal on Terminating the Public Shares Repurchase Plan. It decided to terminate the
implementation of the Proposal on Public Shares Repurchase Plan adopted by the Annual General Meeting of Shareholders for 2021Fiscal Year. A total of 1,870,069 shares was repurchased and cancelled during the reporting period, resulting in the correspondingdecrease of share capital by RMB 88,006,804.12.
② According to the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects reviewed and adopted at the 18
th
Session of the Seventh Board of Directors and the 17
thSession of the Seventh Board of Supervisors held on January 31, 2023, 79,000restricted shares were granted to incentive objects this year, with the grant amount of RMB 3,729,590. At the same time, the treasuryshares and the liabilities for repurchase obligations were recognized at RMB 79,000 based on the number of restricted stocks issuedand the corresponding repurchase price of RMB 1 per share.
③At the 14
thSession of the Seventh Board of Directors of the Company, for disqualification of thirteen incentive objects due to theirresignation, the Company decided to repurchase and cancel 53,000 shares of Restricted Stock at the price of RMB 1 per share, withthe decrease of the repurchase obligation by RMB 53,000 accordingly. At the 19
thSession of the Seventh Board of Directors of theCompany, for disqualification of six incentive objects due to their resignation, the Company decided to repurchase and cancel 22,750shares of Restricted Stock at the price of RMB 1 per share, with the decrease of the repurchase obligation by RMB 22,750 accordingly.
32. 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 | -20,454,823.26 | 17,969,332.42 | 17,051,537.83 | 917,794.59 | -3,403,285.43 | |||
| Conversion difference in foreign currency financial statement | -20,454,823.26 | 17,969,332.42 | 17,051,537.83 | 917,794.59 | -3,403,285.43 | |||
| Total other comprehensive income | -20,454,823.26 | 17,969,332.42 | 17,051,537.83 | 917,794.59 | -3,403,285.43 | |||
33. Surplus reserves
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserve | 356,924,811.32 | 11,295,563.32 | 86,136,735.12 | 282,083,639.52 |
| Total | 356,924,811.32 | 11,295,563.32 | 86,136,735.12 | 282,083,639.52 |
Remarks on surplus reserve (including increase and decrease in current period and variation reason):
The decrease of surplus reserve in the current period was because of the Company's deregistration of 1,870,069 repurchased shares,where the amount of difference between the price paid for the repurchased shares and the face value of the shares was adjusted to offsetthe capital reserve-share capital premium, and the insufficient part shall be used to offset the surplus reserve by RMB 86,136,735.12.The increase in the current period was due to the surplus reserve balance after cancellation of repurchased shares was less than 50% ofthe registered capital of the Company, so the surplus reserve was increased by RMB 11,295,563.32.
34. Undistributed profits
Unit: RMB
| Item | Current period | Preceding period |
| Undistributed profits at the end of last period before adjustment | 5,865,316,233.53 | 6,451,748,564.12 |
| Undistributed profits at period beginning after adjustment | 5,865,316,233.53 | 6,451,748,564.12 |
| Plus: Net profit attributable to owners of the parent company | 880,618,279.78 | 932,849,164.03 |
| Minus: withdrawal of statutory surplus reserve | 11,295,563.32 | |
| Common share dividends payable | 2,439,504,228.21 | 1,559,494,958.68 |
| Grant restricted stock | 3,650,590.00 | 76,150,757.24 |
| Undistributed profits at the end of the period | 4,291,484,131.78 | 5,748,952,012.23 |
Adjustment of undistributed profits at period beginning:
1). Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations, undistributed profitat period beginning was changed by RMB 0.00.
2). Due to change of accounting policies, undistributed profit at period beginning was changed by RMB 0.00.
3). Due to rectification of important accounting errors, undistributed profit at period beginning was changed by RMB 0.00.
4). Due to change of merger scope resulted from same control, undistributed profit at period beginning was changed by RMB 0.00.
5). Due to other adjustment, undistributed profit at period beginning was changed by RMB 0.00.
35. Operating incomes and costs
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period | ||
| Revenue | Cost | Revenue | Cost | |
| Revenue from main business | 9,872,392,009.04 | 7,352,664,336.65 | 10,256,439,431.57 | 7,622,713,387.19 |
| Revenue from other operations | 110,224,431.69 | 92,164,920.06 | 67,540,313.25 | 47,736,567.42 |
| Total | 9,982,616,440.73 | 7,444,829,256.71 | 10,323,979,744.82 | 7,670,449,954.61 |
Information related to revenue:
Unit: RMB
| Contract classification | Total |
| Commodity type | |
| Including: | |
| Cookware and utensil | 2,516,239,088.69 |
| Electrical cooking | 4,495,040,148.58 |
| Food cooking appliance | 1,691,379,401.26 |
| Other domestic appliances | 1,279,957,802.20 |
| Classified by business area | |
| Wherein: | |
| Domestic sales | 7,501,764,475.40 |
| Export sales | 2,480,851,965.33 |
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 had been signed but hadnot been performed or not yet completed was RMB 480,254,227.80, of which RMB 480,254,227.80 was expected to be recognized asincome in 2023 Fiscal Year.
36. Taxes and surcharges
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Urban maintenance and construction tax | 28,302,388.21 | 34,278,449.74 |
| Education surcharge | 12,198,871.58 | 14,678,925.15 |
| Housing property tax | 6,001,349.28 | 6,514,302.51 |
| Land use tax | -1,095,848.57 | -1,684,552.99 |
| Vehicle and vessel use tax | 24,666.40 | 27,176.40 |
| Stamp tax | 7,496,718.40 | 3,852,928.84 |
| Local education surcharge | 8,132,580.98 | 9,785,950.09 |
| Environmental protection tax | 24,982.96 | 46,908.98 |
| Total | 61,085,709.24 | 67,500,088.72 |
Other remarksSee Note 6, Taxes, for details of the criteria for the accrual of each tax and surcharge.
37. Sales expenses
Unit: RMB
| Item | Amount incurred during | Amount incurred during |
| this period | prior period | |
| Advertising, sales promotion, and special gift expenses | 804,802,932.70 | 793,740,249.03 |
| Employee remuneration | 186,421,466.63 | 200,599,623.31 |
| Office and business traveling expenses | 69,697,274.57 | 58,158,944.19 |
| Others | 37,478,960.84 | 26,086,187.57 |
| Total | 1,098,400,634.74 | 1,078,585,004.10 |
38. Administrative expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Employee remuneration | 116,970,686.38 | 109,519,189.69 |
| Office, business traveling and depreciation and amortization expenses | 38,412,018.68 | 38,758,513.91 |
| Equity incentive expenses | 16,286,046.00 | 21,404,889.90 |
| Others | 17,364,037.34 | 18,975,433.26 |
| Total | 189,032,788.40 | 188,658,026.76 |
39. R&D expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Employee remuneration | 98,660,270.10 | 97,605,516.41 |
| Trial production experiment cost and consumption expenditure | 16,372,788.48 | 45,231,026.76 |
| New product design cost | 21,374,954.51 | 21,083,513.80 |
| Patent and external institutional fees | 22,692,517.92 | 20,485,620.53 |
| Others | 15,283,271.41 | 10,076,125.92 |
| Total | 174,383,802.42 | 194,481,803.42 |
40. Financial expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Interest expense of loans and accounts payable | 1,741,376.23 | 80,604.70 |
| Interest revenue of deposits and receivables | -49,382,432.80 | -32,112,351.33 |
| Interest expense of lease obligations | 5,459,272.66 | 4,729,836.91 |
| Gain or loss on net foreign exchange | -2,424,046.37 | -16,222,180.30 |
| Handling fee and other financial expenses | 2,354,288.69 | 2,708,735.34 |
| Total | -42,251,541.59 | -40,815,354.68 |
41. 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 | 29,022,563.56 | 39,595,641.01 |
| Refund of handling fee for withholding individual income tax | 1,188,758.28 | 1,092,207.14 |
| Total | 30,211,321.84 | 40,687,848.15 |
(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 | 1,729,084.60 | 11,916,692.79 | Related to benefits |
| Government reward | 2,894,000.00 | 9,700,000.00 | Related to benefits |
| Tax returns | 24,399,478.96 | 17,978,948.22 | Related to benefits |
| Total | 29,022,563.56 | 39,595,641.01 |
42. 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 | -460,529.47 | -457,219.85 |
| Investment income from disposal of transactional financial assets | 7,170,581.56 | 2,801,323.05 |
| Interest from term deposit | 5,852,397.27 | 29,159,105.64 |
| Investment income of debt investment during the holding period | 18,450,770.17 | 6,713,635.48 |
| Total | 31,013,219.53 | 38,216,844.32 |
43. 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 | 129,103.13 | 550,529.85 |
| Total | 129,103.13 | 550,529.85 |
44. Credit impairment loss
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Loss for bad debts of other receivables | -504,792.54 | -473,075.27 |
| Accounts receivable | -12,624,888.07 | 25,130,551.51 |
| Financial guarantee contract | 94,073.72 | 564,964.97 |
| Total | -13,035,606.89 | 25,222,441.21 |
45. Asset impairment loss
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| II. Loss on Inventory Depreciation and Impairment Loss of Contract Performance Cost | -5,771,681.15 | -16,045,044.53 |
| Total | -5,771,681.15 | -16,045,044.53 |
46. Assets disposal income
Unit: RMB
| Source of assets disposal income | Amount incurred during this period | Amount incurred during prior period |
| Profits from disposal of non-current assets (loss is filled by "-") | -1,528,389.30 | -498,368.94 |
| Proceeds from the disposal of the right-of-use assets | 530,406.83 | 304,915.84 |
| Total | -997,982.47 | -193,453.10 |
47. 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 | 157,741.35 | 125,962.34 | 157,741.35 |
| Including: Gains from scrap of fixed assets | 157,741.35 | 125,962.34 | 157,741.35 |
| Default fine revenue | 939,310.46 | 937,976.52 | 939,310.46 |
| Others | 592,034.76 | 1,224,315.17 | 592,034.76 |
| Total | 1,689,086.57 | 2,288,254.03 | 1,689,086.57 |
48. 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 | 1,162,779.05 | 1,120,000.02 | 1,162,779.05 |
| Damage and scrapping losses of non-current assets | 765,667.84 | 245,051.52 | 765,667.84 |
| Including: Losses from scrapping of fixed assets | 765,667.84 | 245,051.52 | 765,667.84 |
| Others | 315,030.27 | 1,531,257.29 | 315,030.27 |
| Total | 2,243,477.16 | 2,896,308.83 | 2,243,477.16 |
49. Income tax expenses
(1) Details
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Current period income tax expenses | 203,086,520.76 | 316,759,106.44 |
| Deferred income tax expenses | 15,809,478.09 | 2,497,447.66 |
| Total | 218,895,998.85 | 319,256,554.10 |
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
| Item | Amount incurred during this period |
| Total profit | 1,098,129,774.21 |
| Income tax expenses based on statutory/applicable tax rate | 274,532,443.55 |
| Effect of different tax rate applicable to subsidiaries | -55,240,108.52 |
| Effect of prior income tax reconciliation | -3,407,872.49 |
| Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax assets in the current period | 3,019,072.51 |
| Effect of tax rate variation on deferred income taxes balance at the beginning of the period | -7,536.20 |
| Income tax expenses | 218,895,998.85 |
50. Other comprehensive incomes
Refer to Notes 32 for details.
51. Cash flow statement items
(1) Other cash receipts related to operating activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Receipt of government subsidies | 4,623,084.60 | 22,708,899.93 |
| Receipt of deposit, security and staff reserve fund loan | 9,037,333.60 | 10,386,022.99 |
| Interest revenues | 21,191,658.08 | 22,572,015.53 |
| Others | 22,693,410.19 | 10,594,834.36 |
| Total | 57,545,486.47 | 66,261,772.81 |
(2) 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 | 984,966,555.13 | 899,665,674.62 |
| Cash payment for administrative expenses | 70,192,567.60 | 60,907,658.14 |
| Cash payment for R&D expenses | 74,575,724.73 | 109,717,018.05 |
| Donations payment | 694,727.20 | 673,091.00 |
| Other payments | 1,784,876.82 | 5,512,875.25 |
| Total | 1,132,214,451.48 | 1,076,476,317.06 |
(3) Other cash receipts related to investing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Recovery of principal of financial products and term deposits | 2,647,094,578.70 | 1,380,000,000.00 |
| Total | 2,647,094,578.70 | 1,380,000,000.00 |
(4) 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 | 1,540,000,000.00 | 550,000,000.00 |
| Total | 1,540,000,000.00 | 550,000,000.00 |
(5) Other cash receipts related to financing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period |
| Receipt of equity incentive payments | 79,000.00? | |
| Total | 79,000.00? |
(6) 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 | 58,185,415.23 |
| Cash paid for repayment of lease obligation principal and interest | 32,865,808.90 | 21,490,157.99 |
| Total | 263,071,559.40 | 79,675,573.22 |
52. 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 | 879,233,775.36 | 933,694,778.89 |
| Plus: Impairment provision of assets | 5,771,681.15 | 16,045,044.53 |
| Credit impairment loss | 13,035,606.89 | -25,222,441.21 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 66,601,089.78 | 62,262,292.80 |
| Depreciation of right-of-use assets | 18,001,711.63 | 22,473,391.88 |
| Amortization of intangible assets | 13,197,324.41 | 11,583,100.10 |
| Amortization of long-term unamortized expenses | ||
| Loss on disposal of fixed assets, intangible assets and other long-term assets ("-" for gains) | 997,982.47 | 193,453.10 |
| Fixed assets retirement loss ("-" for gains) | 607,926.49 | 119,089.18 |
| Losses from changes in fair value ("-" for revenue) | -129,103.13 | -550,529.85 |
| Financial expenses ("-" for gains) | -2,424,046.38 | -16,222,180.30 |
| Investments losses ("-" for gains) | -31,013,219.53 | -38,216,844.32 |
| Decrease of deferred income tax assets ("-" for increase) | 15,026,101.96 | 2,497,447.66 |
| Increase of deferred income tax liabilities ("-" for decrease) |
| Decrease in inventories ("-" for increase) | 554,366,591.39 | 799,978,326.78 |
| Decrease in operating receivables ("-" for increase) | -214,465,453.45 | 510,296,788.15 |
| Increase in operating payables ("-" for decrease) | -789,944,755.92 | -933,306,325.73 |
| Others | 26,177,298.00 | -36,780,525.33 |
| Net cash flows from operating activities | 555,040,511.12 | 1,308,844,866.33 |
| 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: | ||
| Closing balance of cash | 1,344,219,071.30 | 3,008,602,558.47 |
| Minus: Opening balance of cash | 2,395,932,752.38 | 2,443,731,679.06 |
| Plus: Closing balance of cash equivalents | ||
| Minus: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -1,051,713,681.08 | 564,870,879.41 |
(2) Cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 1,344,219,071.30 | 2,395,932,752.38 |
| Including: Cash on hand | 61,638.32 | 56,591.47 |
| Cash in bank on demand for payment | 1,319,747,410.78 | 2,361,573,752.74 |
| Other monetary capitals on demand for payment | 24,410,022.20 | 34,302,408.17 |
| III. Balance of Cash and Cash Equivalents at the End of the Period | 1,344,219,071.30 | 2,395,932,752.38 |
53. Assets with title or use right restrictions
Unit: RMB
| Item | Closing book value | Reasons for restrictions |
| Monetary capital | 58,000,000.00 | Receipt of Deposit security for advance payment financing |
| Monetary capital | 405,723,750.00 | Bank acceptance bill security |
| Monetary capital | 948,609.32 | Security and frozen funds of e-commerce platforms |
| Total | 464,672,359.32 |
54. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
| Item | Closing balance in foreign currencies | Conversion rate | RMB equivalent |
| Monetary capital | |||
| Including: USD | 35,123,484.51 | 7.2258 | 253,795,274.37 |
| EUR | 29,790.45 | 7.8771 | 234,662.35 |
| GBP | 18,829.55 | 9.1432 | 172,162.34 |
| VND | 15,517,007,067.80 | 0.000306438 | 4,755,000.61 |
| SGD | 93,543.07 | 5.3442 | 499,912.87 |
| IDR | 26,638,257,912.92 | 0.000484 | 12,892,916.83 |
| Accounts receivable | |||
| Including: USD | 24,350,640.75 | 7.2258 | 175,952,859.93 |
| VND | 9,307,668,834.50 | 0.000306438 | 2,852,223.42 |
| IDR | 5,957,592,898.00 | 0.000484 | 2,883,474.96 |
| Accounts payable | |||
| Including: USD | 2,148,315.58 | 7.2258 | 15,523,298.72 |
| EUR | 232.00 | 7.8771 | 1,827.49 |
| VND | 72,558,811,220.86 | 0.000306438 | 22,234,776.99 |
| SGD | 30,230.00 | 5.3442 | 161,555.17 |
| IDR | 2,870,399,839.45 | 0.000484 | 1,389,273.52 |
(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 shall alsodisclose the reasons for changes in the recording currency.
□ Applicable ? Not-applicable
VIII. Change on Merger Scope
1. Others
During the current period, the Company has not changed the merger scope.
IX. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise group
| Subsidiary name | Main operating place | Place of registration | Business nature | Shareholding ratio | Acquisition method | |
| Direct | Indirect | |||||
| Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd. [Note 1] | Hangzhou | Hangzhou | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. [Note 1] | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |
| Supor (Vietnam) Co., Ltd. [Note 1] | Vietnam | Vietnam | Manufacturing industry | 100.00% | Establishment | |
| Wuhan Supor Recycling Co., Ltd. [Note 1] | Wuhan | Wuhan | Commerce | 100.00% | Establishment | |
| Wuhan Supor Cookware Co., Ltd. [Note 1] [Note 2] | Wuhan | Wuhan | Manufacturing industry | 25.00% | 75.00% | Establishment |
| Hangzhou Omegna Commercial Trade Co., Ltd. [Note 1] | Hangzhou | Hangzhou | Commerce | 100.00% | Establishment | |
| Shanghai Supor Cookware Marketing Co., Ltd. [Note 1] | Shanghai | Shanghai | Commerce | 100.00% | Establishment | |
| Wuhan Supor Pressure Cooker Co., Ltd. [Note 1] | Wuhan | Wuhan | Manufacturing industry | 100.00% | Enterprise merger under the same control | |
| Zhejiang Supor Plastic & Rubber Co., Ltd. [Note 1] | Yuhuan | Yuhuan | Manufacturing industry | 100.00% | Enterprise merger under the same control | |
| Yuhuan Supor Cookware Marketing Co., Ltd. [Note 1] | Yuhuan | Yuhuan | Commerce | 100.00% | Enterprise merger not under the same control | |
| SEADA [Note 1] | Singapore | Singapore | Commerce | 51.00% | Enterprise merger under the same control | |
| AFS Vietnam Management Co., Ltd. [Note 1] [Note 3] | Vietnam | Vietnam | Commerce | 100.00% | Enterprise merger under the same control | |
| Shanghai WMF Enterprise Development Co., Ltd. [Note 1] | Shanghai | Shanghai | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang WMF Housewares Co., Ltd. [Note 1] | Yuhuan | Yuhuan | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang Shaoxing Supor Housewares Products Co., Ltd. [Note 1] | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang Supor Large Kitchen Appliance Co., Ltd. [Note 1] | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |
| PT GROUPE SEB INDONESIA MSD [Note 4] | Indonesia | Indonesia | Commerce | 66.67% | Establishment | |
| Zhejiang Supor Water Heater Co., Ltd. [Note 1] [Note 5] | Shaoxing | Shaoxing | Manufacturing industry | 52.00% | Establishment | |
| Hainan Supor E-commerce Co., Ltd. [Note 1] [Note 6] | Hainan | Hainan | Commerce | 100.00% | Establishment | |
| Hainan Tefal Trade Co., Ltd. [Note 1] [Note 6] | Hainan | Hainan | Commerce | 100.00% | Establishment |
Explanation on shareholding ratio in subsidiary different from voting ratio:
Note 1: The following are abbreviations: Zhejiang Supor Electrical, Shaoxing Supor, Supor Vietnam, Wuhan Recycling, Wuhan SuporCookware, Omegna, Shanghai Marketing, Wuhan Supor Pressure Cooker, P&R Products, Wuhan Supor, Yuhuan Sales, SEADA, AFS,Shanghai WMF Enterprise Development, Zhejiang WMF Housewares, Shaoxing Supor Housewares, Supor Large Kitchen Appliance,Supor Water Heater, Hainan Supor E-commerce Company and Hainan Tefal Trade Company.Note 2: This 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 3: The Company holds 51% equity of SEADA, and SEB INTERNATIONALE S.A.S holds 49% equity of the Company; AFS isa subsidiary totally held by SEADA.Note 4: 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 5: 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 6: Hainan Supor E-commerce Company and Hainan Tefal Trade Company are wholly owned subsidiaries of Zhejiang SuporElectrical.
(2) Significant not wholly-owned subsidiaries
Unit: RMB
| Subsidiary name | Holding proportion of minority shareholder | Profit or loss attributable to minority shareholder | Dividend declared to minority shareholder | Balance of minority shareholders' equities at the end of the period |
| SEADA | 49.00% | -222,946.74 | 7,452,890.87 | |
| AFS | 49.00% | 70,730.19 | -11,325.01 | |
| Indonesian Company | 33.33% | -1,451,131.79 | 651,539.62 | |
| Supor Water Heater | 48.00% | 218,843.92 | 28,045,509.43 |
(3) Main financial information of significant not wholly-owned subsidiaries
Unit: RMB
| Subsidiary name | Closing balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| SEADA | 4,138,635.37 | 14,300,619.92 | 18,439,255.29 | 15,226,589.63 | 15,226,589.63 | 3,763,157.10 | 13,869,963.20 | 17,633,120.30 | 14,241,765.93 | 14,241,765.93 | ||
| AFS | 3,303,781.58 | 511,819.52 | 3,815,601.10 | 925,211.54 | 386,931.12 | 1,312,142.66 | 3,389,845.91 | 568,960.44 | 3,958,806.35 | 1,070,523.05 | 439,200.49 | 1,509,723.54 |
| Indonesian Company | 20,533,333.35 | 3,175,723.11 | 23,709,056.46 | 4,681,488.30 | 429,674.78 | 5,111,163.08 | 19,265,234.13 | 4,387,418.29 | 23,652,652.42 | 3,939,053.83 | 487,307.49 | 4,426,361.32 |
| Supor Water Heater | 78,082,085.88 | 3,522,858.45 | 81,604,944.33 | 23,061,316.75 | 23,061,316.75 | 81,886,479.37 | 4,198,450.08 | 86,084,929.45 | 27,883,742.19 | 27,883,742.19 |
Unit: RMB
| Subsidiary name | Amount incurred during this period | Amount incurred during prior period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | |
| SEADA | 301,678.75 | -276,008.93 | -178,688.71 | 72,408.63 | 487,263.80 | 880,735.29 | 946,504.87 | 202,599.96 |
| AFS | 144,347.33 | 233,715.07 | 1,656,447.93 | 159,433.94 | 238,911.66 | 913,081.75 | ||
| Indonesian Company | 8,025,028.37 | -2,198,684.55 | -628,397.72 | 736,297.67 | 7,834,711.92 | 699,115.39 | 811,416.04 | 699,146.18 |
| Supor Water Heater | 24,936,793.54 | 342,440.32 | 342,440.32 | 651,978.54 | 32,635,218.27 | 845,088.15 | 845,088.15 | -1,246,208.23 |
2. Equity in joint venture or associated enterprises
(1) Significant joint venture or associated enterprises
| Name of joint venture or associated enterprise | Main operating place | Place of registration | Business nature | Shareholding ratio | Accounting method for the investment in joint venture or associated enterprises | |
| Direct | Indirect | |||||
| Wuhan Anzai Cookware Co., Ltd. | Wuhan | Wuhan | Manufacturing industry | 30.00% | Equity method | |
(2) Main financial information of significant associated enterprise
Unit: RMB
| Closing balance/amount incurred during this period | Opening balance/Amount incurred during prior period | |
| Current assets | 119,924,534.32 | 127,719,328.09 |
| Non-current assets | 39,161,059.60 | 41,540,448.40 |
| Total assets | 159,085,593.92 | 169,259,776.49 |
| Current liabilities | 28,018,332.45 | 36,684,125.15 |
| Non-current liabilities | 472,500.00 | 540,000.00 |
| Total liabilities | 28,490,832.45 | 37,224,125.15 |
| Shareholders' equities attributable to the parent company | 130,594,761.47 | 132,035,651.34 |
| Proportionate share in net assets | 39,178,428.44 | 39,610,695.40 |
| Adjusting events | ||
| --Goodwill | 22,585,444.13 | 22,585,444.13 |
| Book value of investments in associated enterprises | 61,763,872.57 | 62,196,139.53 |
| Operating income | 89,427,598.31 | 107,194,897.86 |
| Net profit | -1,440,889.88 | -1,936,776.60 |
| Total comprehensive income | -1,440,889.88 | -1,936,776.60 |
X. Risks Related To Financial Instruments(I) Risk management objectives and policiesSupor 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 and liabilitiesof Supor. When short-term imbalance occurred to foreign currency assets and liabilities, Supor may conduct foreign exchange hedgeor trade foreign currency at market exchange rate when necessary, in order to maintain the net risk exposure within an acceptable level.Please refer to notes to others - foreign currency monetary items for details in foreign currency financial assets and liabilities atthe end 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 30 ofSupor 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, 2023 | ? | ? |
| USD | 820,940.81 | 820,940.81 |
| EUR | 1,860.65 | 1,860.65 |
| GBP | 1,463.38 | 1,463.38 |
| VND | -117,020.42 | -117,020.42 |
| SGD | 2,807.59 | 2,807.59 |
| IDR | 112,219.52 | 112,219.52 |
| Total | 822,271.53 | 822,271.53 |
| December 31, 2022 | ? | ? |
| USD | 3,877,846.10 | 3,877,846.10 |
| EUR | 1,792.50 | 1,792.50 |
| GBP | 2.15 | 2.15 |
| VND | 358,356.14 | 358,356.14 |
| SGD | 1,893.94 | 1,893.94 |
| IDR | 74,978.65 | 74,978.65 |
| Total | 4,314,869.48 | 4,314,869.48 |
(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 flows dueto market rate. As of June 30, 2023, Supor had no balance of borrowings. Supor's gross profits and shareholders' equities will not besignificantly 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 entrusted financialproducts are issued by creditworthy financial institutions. The management considers that there is not any significant credit risk and itis 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 (includingderivative financial instruments). Except for the financial guarantee provided by Supor in Note XIV, Supor has not provided any otherguarantee that may expose Supor to credit risk. The exposure of the maximum credit risk assumed by the above financial guaranteeson the balance sheet date has been disclosed in Note XIV.
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 conducts ongoingmonitoring 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. Keep realtime 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 61.84% of closing balance (December 31,2022: 50.14%), and the Company's account receivables were expected to have less credit risk. As the Company's credit risks fall intoseveral business partners and customers, as of June 30, 2023, 21.52% (December 31, 2022: 26.43%) of the total accounts receivablewas due from the five largest customers of the Company after deducting receivables from related party SEB S.A. and its affiliates. TheCompany 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 performed collectivemanagement and ongoing monitoring on such receivables and related business to avoid significant risks in bad debts.
(a) Analysis of amount of accounts receivable that is not past due and not impaired, the amount that is past due but not impaired, andthe overdue aging of Supor is as follows:
Unit: RMB
| Item | Closing balance | ||||
| Neither past due nor impaired | Total | ||||
| Past due but not impaired | |||||
| Within 1 year | 1-2 years | Over 2 years | |||
| Notes receivable | 20,847,819.64 | 20,847,819.64 | |||
Receivables financing
| Receivables financing | 238,173,347.65 | 238,173,347.65 | |||
| Other receivables | 744,280.34 | 744,280.34 |
Subtotal
| Subtotal | 259,765,447.63 | 259,765,447.63 |
(Continued)
| Item | Beginning balance | ||||
| Neither past due nor impaired | Total | ||||
| Past due but not impaired | |||||
| Within 1 year | 1-2 years | Over 2 years | |||
| Notes receivable | 27,325,952.95 | 27,325,952.95 | |||
Receivables financing
| Receivables financing | 235,957,044.34 | 235,957,044.34 | |||
| Other receivables | 1,237,388.33 | 1,237,388.33 | |||
| Subtotal | 264,520,385.62 | 264,520,385.62 |
(b) For individually accrued impairment receivables, please refer to related description on Note VII. "4. Accounts receivable" in thenotes to the financial statements.
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, orfailure in collecting liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash 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 | Closing balance | ||||
| Book value | Within 1 year | 1-3 years | Over 3 years | Total | |
Financial assets
| Financial assets | |||||
| Monetary capital | 1,859,681,088.15 | 1,859,681,088.15 | 1,859,681,088.15 | ||
| Transactional financial assets | 250,129,103.13 | 250,129,103.13 | 250,129,103.13 |
Notes receivable
| Notes receivable | 20,847,819.64 | 20,847,819.64 | 20,847,819.64 | ||
| Accounts receivable | 2,253,001,396.06 | 2,253,001,396.06 | 2,253,001,396.06 |
| Receivables financing | 238,173,347.65 | 238,173,347.65 | 238,173,347.65 | ||
| Other receivables | 17,444,244.73 | 17,444,244.73 | 17,444,244.73 | ||
| Other debt investment | 1,103,225,054.80 | 312,025,000.00 | 849,875,000.00 | 1,161,900,000.00 | |
| Other current assets [Note] | 220,760,000.00 | 220,760,000.00 | 220,760,000.00 | ||
| Subtotal | 5,963,262,054.16 | 5,172,061,999.36 | 849,875,000.00 | 6,021,936,999.36 |
Financial liabilities
| Financial liabilities | |||||
| Notes payable | 1,395,862,500.00 | 1,395,862,500.00 | 1,395,862,500.00 | ||
| Accounts payable | 2,496,406,000.99 | 2,496,406,000.99 | 2,496,406,000.99 | ||
| Other payables | 139,535,730.90 | 139,535,730.90 | 139,535,730.90 |
Other current liabilities
| Other current liabilities | 16,967,274.33 | 16,967,274.33 | 16,967,274.33 |
Lease obligation
| Lease obligation | 187,365,120.99 | 51,912,604.58 | 136,825,291.71 | 23,603,643.02 | 212,341,539.31 |
| Subtotal | 4,236,136,627.21 | 4,100,684,110.80 | 136,825,291.71 | 23,603,643.02 | 4,261,113,045.53 |
Note: Other current assets are term deposits for the purpose of obtaining benefits.(Continued)
| Item | Beginning balance | ||||
| Book value | Within 1 year | 1-3 years | Over 3 years | Total | |
Financial assets
| Financial assets | |||||
| Monetary capital | 3,563,140,907.75 | 3,563,140,907.75 | 3,563,140,907.75 | ||
| Transactional financial assets | 431,382,527.79 | 431,382,527.79 | 431,382,527.79 | ||
| Notes receivable | 27,325,952.95 | 27,325,952.95 | 27,325,952.95 | ||
| Accounts receivable | 1,926,518,118.38 | 1,926,518,118.38 | 1,926,518,118.38 | ||
| Receivables financing | 235,957,044.34 | 235,957,044.34 | 235,957,044.34 | ||
| Other receivables | 16,373,697.26 | 16,373,697.26 | 16,373,697.26 |
Other debt investment
| Other debt investment | 1,056,952,424.68 | 33,150,000.00 | 1,101,237,500.00 | 1,134,387,500.00 | |
| Other current assets [Note] | 381,101,095.89 | 381,101,095.89 | 381,101,095.89 |
Subtotal
| Subtotal | 7,638,751,769.04 | 6,614,949,344.36 | 1,101,237,500.00 | 7,716,186,844.36 | |
| Financial liabilities | |||||
| Notes payable | 1,057,611,900.00 | 1,057,611,900.00 | 1,057,611,900.00 |
Accounts payable
| Accounts payable | 2,635,521,548.19 | 2,635,521,548.19 | 2,635,521,548.19 | ||
| Other payables | 137,729,222.63 | 137,729,222.63 | 137,729,222.63 |
Other current liabilities
| Other current liabilities | 22,383,800.87 | 22,383,800.87 | 22,383,800.87 | ||
| Lease obligation | 192,704,856.82 | 48,581,182.84 | 108,232,041.03 | 45,611,911.42 | 202,425,135.29 |
| Subtotal | 4,045,951,328.51 | 3,901,827,654.53 | 108,232,041.03 | 45,611,911.42 | 4,055,671,606.98 |
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 "25. Other current liabilities".XI. 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 | 250,129,103.13 | 250,129,103.13 | ||
| (II) Other debt investments | 1,103,225,054.80 | 1,103,225,054.80 | ||
| (III) Receivables financing | ||||
| (1) Notes receivable | 238,173,347.65 | 238,173,347.65 | ||
| II. Non-continued Measurement of Fair Value | -- | -- | -- | -- |
2. Basis for determining the market value of continuous and non-continuous Level 1 fair value measurementitemsNone
3. Qualitative and quantitative information of continuous and non-continuous Level 2 fair valuemeasurement items, valuation techniques adopted and important parametersThe fair value of other debt investments and receivables financing is calculated and determined by the method of discounted futurecash flows.
4. 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, in the financial assets measured at the fair value with their changes included into the currentprofits and losses, is determined by the method of discounted future cash flows calculated by the agreed expected rate of return.
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.
XII. Related Parties and Related Transactions
1. Parent company
| Parent 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 | 82.64% | 82.64% |
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 marketable securities,and transfer of such securities or notes, all financial operations related to equity participation, purchase, manufacturing and selling ofhome appliances for the purpose of distribution and rendering of relevant services, all activities directly or indirectly contributing tothe realization of these operations, particularly in the areas of movable properties, real estate, finance, commerce and industry operation.Supor's final controlling party is SEB S.A.
2. Company's subsidiaries
Please refer Note IX. "1. Equity in subsidiaries" for details on the Company's subsidiaries.
3. Joint ventures and associated enterprises of the Company
Please refer to Note IX. "2. Equity in joint ventures or associated enterprises" for details on the Company's significant joint venturesand associates.Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current period orin 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 USA | Same controlling shareholder |
| GROUPE SEB CANADA | Same controlling shareholder |
| GROUPE SEB ANDEAN S.A. | Same controlling shareholder |
| GROUPE SEB KOREA, LTD | Same controlling shareholder |
| ROWENTA FRANCE | Same controlling shareholder with the controlling shareholder |
| Saichuang (Zhejiang) Technology 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 laborservices
Purchase 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 | 63,625,052.86 | No | 64,451,093.92 | |
| Wuhan Anzai Cookware Co., Ltd. | Accessories | 25,626,690.95 | No | 42,746,852.61 | |
| GROUPE SEB EXPORT | Finished products | 1,151,986.78 | No | 4,569,624.34 | |
| TEFAL S.A.S. | Accessories | 4,737,263.35 | No | 5,564,791.38 | |
| LAGOSTINA S.P.A. | Finished products | 393,590.48 | No | 2,194,942.00 | |
| SEB INTERNATIONAL SERVICE S.A.S. | Accessories | 84,055.57 | No | 234,206.73 | |
| SEB INTERNATIONAL SERVICE S.A.S. | Finished products | 12,778.10 | No |
| SEB ASIA LTD. | Finished products | 43,294.99 | No | ||
| GROUPE SEB MOULINEX | Accessories | 1,080,900.02 | No | 1,839,097.62 | |
| Wmf (heshan) Manufacturing Company Limited | Finished products | 116,955.76 | No | 214,089.78 | |
| GROUPE SEB THAILAND | Finished products | 182,892.82 | No | ||
| ETHERA | Accessories | No | 319,583.04 | ||
| WMF GROUPE GMBH | Finished products | 32,327,980.44 | No | 12,387,300.16 | |
| SEB Professional (Shanghai) Co., Ltd. | Finished products | 271.41 | No | ||
| Supor Group Co., Ltd. | Finished products | No | 7,471.00 | ||
| Emsa Taicang Co., Ltd. | Finished products | 234,955.76 | No | ||
| GROUPE SEB KOREA, LTD | Finished products | 72,887.77 | 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 | 2,317,968,141.55 | 2,599,590,781.21 |
| SEB ASIA LTD. | Accessories | 5,444,308.05 | 2,648,083.19 |
| S.A.S. SEB | Finished products | 7,134,221.91 | 10,143,181.26 |
| S.A.S. SEB | Accessories | 239,073.76 | 495,400.35 |
| TEFAL S.A.S. | Finished products | 1,295,914.74 | 5,771,600.06 |
| TEFAL S.A.S. | Accessories | 9,354,844.69 | 7,810,501.26 |
| GROUPE SEB MOULINEX | Finished products | 6,392,956.57 | 11,729,902.13 |
| Supor Group Co., Ltd. | Finished products | 7,462,121.06 | 2,459,900.56 |
| SEB INTERNATIONAL SERVICE S.A.S. | Accessories | 11,780,996.71 | 10,678,771.92 |
| LAGOSTINA S.P.A. | Finished products | 0.00 | 49,269.52 |
| LAGOSTINA S.P.A. | Accessories | 129,069.03 | 781,661.90 |
| IMUSA USA LLC | Finished products | 5,162,890.46 | 9,872,683.87 |
| IMUSA USA LLC | Accessories | 21,408.79 | 17,306.67 |
| SEB Professional (Shanghai) Co., Ltd. | Finished products | 108,194.90 | 219,109.25 |
| GROUPE SEB CANADA | Finished products | 4,669,945.78 | 8,281,052.82 |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Finished products | 4,822,561.94 | 12,712,078.20 |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Accessories | 0.00 | 11,067.77 |
| GROUPE SEB ANDEAN S.A. | Accessories | 235,484.20 | 2,785,092.32 |
| Wuhan Anzai Cookware Co., Ltd. | Accessories | 15,018.14 | 11,947.34 |
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | Finished products | 778,100.88 | 216,700.00 |
(2) Related leases
The Company acts as the leasee:
Unit: RMB
| Leaser | Leasee | 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. | Shaoxing Supor | Real Estate | 0.00 | 435,031.66 | 0.00 | 69,393.51 | ||||||
| Zhejiang Supor Electrical | 4,381,230.87 | 3,674,784.85 | 1,031,095.77 | 749,408.06 | 9,692,601.95 | |||||||
| Wuhan Cookware | 1,431,172.80 | 1,307,753.94 | 383,573.43 | 232,535.11 | 9,702,266.81 | |||||||
| Shaoxing Supor Housewares | 702,836.19 | 119,188.97 | 125,387.39 | |||||||||
| P&R Products | 68,114.29 | 42,000.00 | 2,280.84 | 4,387.84 | ||||||||
(3) Capital inter-bank lending of related parties
Unit: RMB
| Related parties | Borrowed/lent amount | Start date | Expiry date | Notes |
| Borrowing | ||||
| SEB S.A. | 596,942.01 | January 1, 2023 | No fixed term | Loans |
| Lending | ||||
(4) Key management's emoluments
Unit: RMB 10000
| Item | Amount incurred during this period | Amount incurred during prior period |
| Key management’s emoluments | 870.22 | 848.39 |
| Key management’s share-based payment expense | 221.21 | 308.89 |
(5) Other related transactions
① Water and electricity fee
Unit: RMB
| Selling parties | Purchasing parties | Amount incurred during this period | Amount incurred during prior period |
| Supor Group Co., Ltd. | Zhejiang Supor Electrical | 106,169.13 |
② Property management, maintenance and berth fees
Unit: RMB
| Service renderer | Purchasing parties | Amount incurred during this period | Amount incurred during prior period |
| Supor Group Co., Ltd. | Zhejiang Supor Electrical | 120,000.00 |
③ Consulting fee
Unit: RMB
| Service renderer | Purchasing parties | Amount incurred during this period | Amount incurred during prior period |
| SEB ASIA LTD. | The Company | 448,824.00 | 448,824.00 |
| Wuhan Supor Cookware | 227,046.00 | 227,046.00 | |
| Shaoxing Supor | 318,516.00 | 318,516.00 | |
| Zhejiang Supor Electrical | 205,614.00 | 205,614.00 |
④ Cost of international shopping center
Unit: RMB
| Service renderer | Purchasing parties | Amount incurred during this period | Amount incurred during prior period |
| SEB DEVELOPPMENT SAS | Shaoxing Supor | 1,680,000.00 | |
| Zhejiang Supor Electrical | 1,320,000.00 | ||
| Wuhan Supor Cookware | 834,070.74 |
⑤ Test service, etc.
Unit: RMB
| Service renderer | Purchasing parties | Amount incurred during this period | Amount incurred during prior period |
| The Company | Saichuang (Zhejiang) Technology Co., Ltd. | 62,842.64 | |
| Zhejiang Supor Electrical | 258,617.18 | 236,616.00 | |
| AFS | GROUPE SEB VIETNAM JOINT STOCK COMPANY | 1,587,735.40 | 1,586,131.90 |
| Saichuang (Zhejiang) Technology Co., Ltd. | Shaoxing Supor | 1,607,272.00 | 1,256,325.00 |
⑥ Warehousing service
Unit: RMB
| Service renderer | Purchasing parties | Amount incurred during this period | Amount incurred during prior period |
| The Company | SEB ASIA LTD. | 2,519,895.82 | |
| Wuhan Supor Cookware | 986,402.20 | ||
| Zhejiang Supor Electrical | 351,667.60 | ||
| Shaoxing Supor | 1,764,063.02 |
⑦ 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 contractsigned by both parties, use charges are accrued at 3% of revenue from sales of products licensed. In the current period, Wuhan SuporCookware Co., Ltd. should pay S.A.S SEB technology use charges of RMB 359,408.34 (2022: RMB 526,305.07), and as of June 30,2023, a balance of RMB 53,716.58 had not been paid (December 31, 2022: RMB 94,651.13).
⑧ 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 from salesof products licensed. In the current period, Wuhan SUPOR should pay LAGOSTINA SPA. trademark use charges of RMB 1,592.95(2022: RMB 43,093.45), and as of June 30, 2023, a balance of RMB 1,394,066.16 had not been paid (December 31, 2022: RMB1,395,659.11).
⑨ Pursuant to the Trademark License entered into between Omegna and LAGOSTINA SPA. on December 5, 2016, LAGOSTINASPA licensed Omegna for compensated use of its trademark "LAGOSTINA". According to related terms in the contract signed by bothparties, use charges are accrued at 4% of revenue from sales of products licensed. In the current period, Omegna should payLAGOSTINA SPA. trademark use charges of RMB 13,475.46 (2022: RMB 66,105.73), and as of June 30, 2023, a balance of RMB4,003,322.26 had not been paid (December 31, 2022: RMB 3,989,846.80).
⑩ 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 to relevantterms in the contract signed by both parties, Shaoxing Supor should pay technology transfer fee RMB 4,954.33 (2022: RMB 22,268.70)to ETHERA in current period, which was calculated as per corresponding unit price of actual total sales. Until June 30, 2023, theremaining RMB 1,827.49 had not been paid yet (December 31, 2022: RMB 4,424.04).
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. | 1,417,903,520.86 | 49,626,623.23 | 977,231,667.49 | 34,203,108.36 |
| S.A.S. SEB | 3,107,344.98 | 108,757.07 | 838,044.35 | 29,331.55 | |
| TEFAL S.A.S. | 7,767,766.93 | 271,871.84 | 3,220,589.96 | 112,720.65 | |
| SEB INTERNATIONAL SERVICE S.A.S. | 8,241,163.49 | 288,440.72 | 3,296,335.17 | 115,371.73 | |
| GROUPE SEB MOULINEX | 2,619,060.12 | 93,456.00 | 1,423,208.22 | 51,536.52 | |
| IMUSA USA LLC | 3,617,079.47 | 126,597.78 | 3,605,881.82 | 126,205.86 | |
| Supor Group Co., Ltd. | 13,250.00 | 662.50 | 11,010.00 | 550.50 | |
| SEB Professional (Shanghai) Co., Ltd. | 343,090.37 | 12,008.16 | 152,845.67 | 5,349.60 | |
| GROUPE SEB CANADA | 2,584,201.13 | 90,447.04 | 1,896,331.22 | 66,371.59 | |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | 4,986,981.49 | 174,544.35 | 14,774,836.65 | 517,119.28 | |
| GROUPE SEB ANDEAN S.A. | 240,060.44 | 8,402.12 | 112,622.53 | 3,941.79 | |
| Wuhan Anzai Cookware Co., Ltd. | 16,500.00 | 825.00 | 16,500.00 | 825.00 | |
| LAGOSTINA S.P.A. | 89,322.21 | 3,126.28 | 173,612.18 | 6,076.43 | |
| Saichuang (Zhejiang) Technology Co., Ltd. | 273,906.21 | 9,586.72 | 261,025.21 | 9,135.88 | |
| Total | 1,451,803,247.70 | 50,815,348.81 | 1,007,014,510.47 | 35,247,644.74 | |
| Advance payment: | Supor Group Co., Ltd. | 171,428.57 | |||
| EMSA GMBH | 197.55 | ||||
| Total | 197.55 | 171,428.57 | |||
| Other receivables: | Supor Group Co., Ltd. | 145,000.00 | 82,500.00 | 145,000.00 | 56,250.00 |
| Total | 145,000.00 | 82,500.00 | 145,000.00 | 56,250.00 |
(2) Payables
Unit: RMB
| Items | Related parties | Ending book balance | Beginning book balance |
| Accounts payable: | Wuhan Anzai Cookware Co., Ltd. | 12,667,291.52 | 17,508,276.00 |
| WMF GROUPE GMBH | 13,731,050.03 | 6,861,332.34 | |
| GROUPE SEB EXPORT | 1,156,718.79 | 1,836,117.60 | |
| TEFAL S.A.S. | 3,751,584.73 | 2,376,975.15 | |
| S.A.S. SEB | 56,359.76 | 94,651.13 | |
| LAGOSTINA S.P.A. | 5,397,988.42 | 5,386,105.91 | |
| GROUPE SEB MOULINEX | 827,599.27 | 131,149.87 | |
| GROUPE SEB THAILAND | 61,695.15 | 43,382.55 | |
| SEB INTERNATIONAL SERVICE S.A.S. | 4,038.28 | 114,692.08 | |
| ETHERA | 1,827.49 | 4,424.04 | |
| Saichuang (Zhejiang) Technology Co., Ltd. | 265,000.00 | 578,673.08 |
| Supor Group Co., Ltd. | 1,816,305.91 | ||
| Wmf (heshan) Manufacturing Company Limited | 53,230.00 | ||
| SEB Professional (Shanghai) Co., Ltd. | 42,630.61 | ||
| ROWENTA FRANCE | 827,920.73 | ||
| SEB ASIA LTD. | 336,996.83 | ||
| GROUPE SEB KOREA, LTD | 46,641.34 | ||
| Total | 40,949,018.25 | 35,031,640.36 | |
| Contract liabilities: | Supor Group Co., Ltd. | 61,574.37 | 6,208,467.16 |
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | 304.42 | ||
| Total | 61,878.80 | 6,208,467.16 | |
| Other payables: | SEB S.A. | 14,932,152.80 | 13,886,668.74 |
| Wuhan Anzai Cookware Co., Ltd. | 50,000.00 | 50,000.00 | |
| Total | 14,982,152.80 | 13,936,668.74 | |
| Lease obligation: | Supor Group Co., Ltd. | 52,952,054.09 | 36,660,807.71 |
| Total | 52,952,054.09 | 36,660,807.71 |
XIII. Share-based Payment
1. Overall information
?Applicable □ Not-applicable
Unit: RMB
| Total equity instruments granted in current period | 79,000.00 |
| Total equity instruments exercised in current period | 0.00 |
| Total equity instruments expired in current period | 75,750.00 |
| The range of exercise price of stock options issued by the Company at the end of the period and the remaining period of the contract | 2021 Equity Incentive Plan: RMB 1/share, 2.58 years 2022 Equity Incentive Plan: RMB 1/share, 3.37 years |
Other remarksPursuant to the Proposal on 2021 Restricted Stock Incentive Plan (Draft) and its Abstract (hereinafter referred to as "2021 EquityIncentive Plan") deliberated and approved in the Third Interim General Meeting of Shareholders 2021 via deliberation held onDecember 30, 2021, the Company was to grant 1,209,500 restricted shares to incentive objects, and repurchased 1,209,500 share capitalsuccessfully from December 15, 2021 to December 21, 2021. The Company granted 1,209,500 shares at a price of RMB 1 per shareon January 6, 2022.Pursuant to the Proposal on 2022 Restricted Stock Incentive Plan (Draft) and its Abstract (hereinafter referred to as "2022 EquityIncentive Plan") deliberated and approved in the First Interim General Meeting of Shareholders 2022 via deliberation held onSeptember 21, 2022, the Company was to grant 1,332,500 restricted shares to incentive objects, and repurchased 1,332,500 sharecapital successfully from May 31, 2022 to July 31, 2022. The Company granted 1,253,500 shares at a price of RMB 1 per share onOctober 12, 2022.
According to the 18
th
Session of the Seventh Board of Directors held on January 31, 2023, the Company deliberated and approvedthe Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects, and the Company granted 79,000 shares at a priceof 1 per share on February 1, 2023.
The 2021 Equity Incentive Plan is valid for 4 years from the first grant date, of which: the sales restriction periods shall be 24months and 36 months respectively from the date of completion for the grant registration. If the conditions for lifting the restriction aremet, the restricted shares shall be lifted in two phases, that is, upon expiry of 24 months and 36 months from the date of completionfor the grant registration, for 50% and 50% of the total restricted shares applied for restriction lifting, respectively. As of June 30, 2023,the remaining period of the above incentive plan is 2.58 years.The 2022 Equity Incentive Plan is valid for 4 years from the first grant date, of which: the sales restriction periods shall be 24months and 36 months respectively from the date of completion for the grant registration. If the conditions for lifting the restriction aremet, the restricted shares shall be lifted in two phases, that is, upon expiry of 24 months and 36 months from the date of completionfor the grant registration, for 50% and 50% of the total restricted shares applied for restriction lifting, respectively. As of June 30, 2023,the remaining period of the above incentive plan is 3.37 years.The 12
thSession of the Seventh Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of RestrictedStock. For disqualification of several Incentive Objects due to their resignation, the Company repurchased and canceled 24,000 sharesof Restricted Stock at the price of RMB 1 per share.
The 14th
Session of the Seventh Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of RestrictedStock. For disqualification of several Incentive Objects due to their resignation, the Company repurchased and canceled 53,000 sharesof Restricted Stock at the price of RMB 1 per share.
The 19
th
Session of the Seventh Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of RestrictedStock. For disqualification of several Incentive Objects due to their resignation, the Company repurchased and canceled 22,750 sharesof Restricted Stock at the price of RMB 1 per share.
2. Equity-settled share-based payment
?Applicable □ Not-applicable
Unit: RMB
| 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 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 | 81,024,533.98 |
| Total expenses incurred due to equity-settled share-based payment transactions | 26,177,298.00 |
Other remarks
1. According to the 2021 Equity Incentive Plan deliberated and approved by the Company at the Third Interim General Meeting ofShareholders 2021 held on December 30, 2021, the Company granted 1,209,500 shares repurchased in 2021 to incentive objects at agrant price of RMB 1.00 per share on January 6, 2022. The above grant reduced treasury shares by RMB 76,159,897.25, the offset wasincluded into capital reserve-share capital premium of RMB 52,997,061.77, and the underwrite-down part was charged to theundistributed profit at the beginning of the year by RMB 21,953,335.48. At the same time, the Company confirmed its stock repurchaseobligation and increased treasury shares by RMB 1,209,500.00.
According to the 2022 Equity Incentive Plan deliberated and approved by the First Interim General Meeting of Shareholders 2022 heldon September 21, 2022, the Company used its self-owned capital to repurchase 1,332,500 shares of the Company's shares in the formof centralized competitive price transaction for the incentive plan, and increased treasury shares by RMB 69,398,019.65. On October12, 2022, the Company granted 1,253,500 shares to incentive objects at a grant price of RMB 1.00 per share. The above grant reducedthe treasury shares by RMB 65,668,429.65 and offset the undistributed profit at the beginning of the year by RMB 64,414,929.65. Atthe same time, the Company confirmed its stock repurchase obligation and increased treasury shares by RMB 1,253,500.00.On February 1, 2023, the Company granted 79,000 shares to incentive objects at a grant price of RMB 1.00 per share.The above grant reduced treasury shares by RMB3,729,590.00 and offset the undistributed profit at the beginning of the year by RMB3,650,590.00. At the same time, the Company confirmed its stock repurchase obligation and increased treasury shares by RMB79,000.00.
2. The impact of 2021 Equity Incentive Plan on the capital reserve was RMB 40,084,396.00 at the beginning of the period, and withan accrual of RMB 9,438,540.00 in the year, amounting to an accrued amount of RMB 49,522,936.00.The impact of 2022 Equity Incentive Plan on the capital reserve was RMB 14,762,839.98 at the beginning of the period, and with anaccrual of RMB 16,738,758.00 in the year, amounting to an accrued amount of RMB 31,501,597.98.
XIV. Commitments and Contingencies
1. Contingencies
(1) Significant contingencies at the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impactIn 2016, a non-governmental patent holder filed a lawsuit to the subsidiary Shaoxing Supor in the name of infringing its patent.In 2020, the relevant patents were declared invalid by the Patent Reexamination Board of the State Intellectual Property Office, so thelitigation risk decreased. This case was settled yet. Based on the principle of conservatism, the Company still retained an estimatedliability of RMB 5.15 million (December 31, 2022: RMB 5.15 million) on June 30, 2023. In 2020, export customers filed legalproceedings against Shaoxing Household Electric Appliances Co., Ltd., a subsidiary, on the grounds of user disputes. This case wassettled yet. Based on the principle of conservatism, the Company still retained an estimated liability of RMB 4 million (December 31,2022: RMB 4 million) on June 30, 2023. In 2021, export customers filed claims for product quality problems against Shaoxing Supor,a subsidiary, on the grounds of user disputes, and one of the cases was settled in the current period, with the company bearing a costof RMB 461,272.50; due to the pending conclusion of another case, based on the principle of conservatism, the Company still retainedan estimated liability of RMB 1,538,727.50 (December 31, 2022: RMB 2 million) on June 30, 2023.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 banksto issue 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 of theacceptance bill, Supor will bear part of the loss of the difference that the bank has not recovered from the distributor. As at June 30,2023, the risk exposure undertaken by Supor was RMB 279,273,600.00 and the estimated liabilities accrued by the Company underthe financial guarantee contracts for the risk exposure amounted to RMB 1,396,368.00.
(2) A statement shall be given even if the Company has no significant contingencies to disclose.The Company had no significant contingencies to disclose.
XV. Events after the Balance Sheet Date
1. Profit distribution situation
NoneXVI. 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 on atargeted basis and evaluate its performance; (3) Supor can obtain financial condition, operating result, cash flow and other relevantaccounting information of the organization. Two or more operating segments, which have similar economic characteristics and meet acertain 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 segment basedon product and geographic segments and assets and liabilities shared by product segments is unable to be clearly distinguished.
(2) Financial information of reportable segments
Unit: RMB
| Item | Cookware | Electrical products | Others | Inter-segment offsetting | Total |
| Revenue from main business | 2,553,334,108.13 | 7,349,084,483.24 | 76,640,996.85 | 106,667,579.18 | 9,872,392,009.04 |
| Cost of main business | 1,834,035,853.45 | 5,556,209,625.41 | 68,784,128.32 | 106,365,270.53 | 7,352,664,336.65 |
(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 to thelocation of customers who receive services or purchase products. Non-current assets are classified as per the physical location of theassets (for fixed assets and construction in progress) or the location where they are allocated to related business (for intangible assets)or the location of joint ventures and associated enterprises.
| Item | Domestic | Foreign | Inter-segment offsetting | Total |
| Revenue from main business | 7,421,861,346.49 | 2,459,767,996.29 | 9,237,333.74 | 9,872,392,009.04 |
| Cost of main business | 5,271,431,798.95 | 2,090,780,249.09 | 9,547,711.39 | 7,352,664,336.65 |
| Non-current assets | 2,002,030,680.63 | 74,426,441.20 | 117,033,788.09 | 1,959,423,333.74 |
③ Major customers
Among Supor's customers, one customer (2022: 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 23.79% (2022: 25.21%) of Supor's totalrevenue.XVII. Notes to Items of Parent Company Financial Statements
1. Accounts receivable
(1) Details on categories
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 | 452,696,564.86 | 100.00% | 13,476,030.30 | 2.98% | 439,220,534.56 | 385,536,357.78 | 100.00% | 10,937,615.03 | 2.84% | 374,598,742.75 |
| Including: | ||||||||||
| Portfolio 1: age portfolio | 384,443,063.90 | 84.92% | 13,440,953.14 | 3.50% | 371,002,110.76 | 312,435,311.86 | 81.04% | 10,880,503.86 | 3.48% | 301,554,808.00 |
| Portfolio 2: low-risk portfolio | 35,077,151.43 | 7.75% | 35,077.16 | 0.10% | 35,042,074.27 | 57,111,169.92 | 14.81% | 57,111.17 | 0.10% | 57,054,058.75 |
| Portfolio 3: merged related parties portfolio | 33,176,349.53 | 7.33% | 0.00% | 33,176,349.53 | 15,989,876.00 | 4.15% | 15,989,876.00 | |||
| Total | 452,696,564.86 | 100.00% | 13,476,030.30 | 2.98% | 439,220,534.56 | 385,536,357.78 | 100.00% | 10,937,615.03 | 2.84% | 374,598,742.75 |
Provision for bad debts made on the basis of portfolio: 13,440,953.14
Unit: RMB
| Name | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year | 384,443,063.90 | 13,440,953.14 | 3.50% |
| Total | 384,443,063.90 | 13,440,953.14 | |
Explanation on the basis for determining such portfolio:
If provision for bad debts for accounts receivable is made based on the general model of expected credit losses, please disclose therelevant information about the provision for bad debts with reference to the disclosure of other receivables:
□ Applicable ? Not-applicable
Disclosure by ages
Unit: RMB
| Ages | Closing balance |
| Within 1 year (including 1 year) | 452,696,564.86 |
| Total | 452,696,564.86 |
(2) 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 | 10,937,615.03 | 2,538,415.27 | 13,476,030.30 | |||
| Total | 10,937,615.03 | 2,538,415.27 | 13,476,030.30 | |||
(3) Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
| Entity name | Closing balance of accounts receivable | Proportion in the total closing balance of accounts receivable | Closing balance of provision for bad debts |
| SEB S.A. and its affiliates | 383,074,859.53 | 84.62% | 13,407,620.08 |
| Customer P | 22,780,709.43 | 5.03% | 22,780.71 |
| Wuhan Supor Cookware | 19,047,459.66 | 4.21% | |
| Supor Vietnam | 12,080,685.90 | 2.67% | |
| Customer Q | 5,236,164.12 | 1.16% | 5,236.16 |
| Total | 442,219,878.64 | 97.69% |
2. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 757,789,870.82 | 1,174,381,191.82 |
| Total | 757,789,870.82 | 1,174,381,191.82 |
(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 | 111,458.00 |
| Fund pool | 754,217,064.88 | 1,172,087,133.42 |
| Temporary payment receivable | 2,640,531.24 | 2,860,673.12 |
| Personal deposit | 1,703,986.84 | 339,400.93 |
| Total | 758,867,110.96 | 1,175,398,665.47 |
2) Provision for bad debts
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, 2023 | 1,017,473.65 | 1,017,473.65 | ||
| Balance on January 1, 2023 in the current period | ||||
| Withdrawal in the current period | 59,766.49 | 59,766.49 | ||
| Balance on June 30, 2023 | 1,077,240.14 | 1,077,240.14 |
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable ? Not-applicable
Disclosure by ages
Unit: RMB
| Ages | Closing balance |
| Within 1 year (including 1 year) | 757,950,861.78 |
| 1-2 years | 20,000.00 |
| Over 3 years | 896,249.18 |
| Over 5 years | 896,249.18 |
| Total | 758,867,110.96 |
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 of other receivables | 1,017,473.65 | 59,766.49 | 1,077,240.14 | |||
| Total | 1,017,473.65 | 59,766.49 | 1,077,240.14 | |||
4) 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 |
| Wuhan Supor Cookware | Fund pool | 330,672,603.95 | Within 1 year | 43.57% | |
| Hainan Supor E-commerce Company | Fund pool | 140,262,116.13 | Within 1 year | 18.48% | |
| Zhejiang Supor Electrical | Fund pool | 129,882,027.34 | Within 1 year | 17.12% | |
| Omegna | Fund pool | 72,163,574.02 | Within 1 year | 9.51% | |
| Shanghai WMF | Fund pool | 61,000,000.00 | Within 1 year | 8.04% | |
| Total | 733,980,321.44 | 96.72% |
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 | 2,777,173,562.90 | 2,777,173,562.90 | 2,763,861,746.90 | 2,763,861,746.90 | ||
| Investments in associates and joint ventures | 61,695,679.18 | 61,695,679.18 | 62,156,208.65 | 62,156,208.65 | ||
| Total | 2,838,869,242.08 | 2,838,869,242.08 | 2,826,017,955.55 | 2,826,017,955.55 | ||
(1) Investments in subsidiaries
Unit: RMB
| Invested unit | Opening balance (Book value) | 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 | 777,383,633.79 | 4,242,660.00 | 781,626,293.79 | ||||
| Shaoxing Supor | 646,842,558.49 | 2,798,562.00 | 649,641,120.49 | ||||
| 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 | 603,055,043.39 | 2,649,282.00 | 605,704,325.39 | ||||
| SEADA | 11,890,622.45 | 11,890,622.45 | |||||
| Shanghai WMF | 50,206,659.00 | 8,622.00 | 50,215,281.00 | ||||
| Zhejiang WMF | 102,179,399.00 | 1,326,468.00 | 103,505,867.00 | ||||
| Supor Large Kitchen Appliance | 100,648,199.00 | 350,190.00 | 100,998,389.00 | ||||
| Shaoxing Supor Housewares | 54,519,526.00 | 455,088.00 | 54,974,614.00 | ||||
| Supor Water Heater | 31,200,000.00 | 31,200,000.00 | |||||
| Hainan Supor E-commerce Company | 570,248.00 | 1,480,944.00 | 2,051,192.00 | ||||
| Total | 2,763,861,746.90 | 13,311,816.00 | 2,777,173,562.90 |
(2) Investments in associates and joint ventures
Unit: RMB
| Investing unit | Opening balance (Book value) | 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. | 62,156,208.65 | -460,529.47 | 61,695,679.18 | ||||||||
| Subtotal | 62,156,208.65 | -460,529.47 | 61,695,679.18 | ||||||||
| Total | 62,156,208.65 | -460,529.47 | 61,695,679.18 | ||||||||
4. Operating incomes and costs
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during prior period | ||
| Revenue | Cost | Revenue | Cost | |
| Revenue from main business | 1,168,704,643.55 | 981,805,496.52 | 1,100,175,925.03 | 1,008,919,142.74 |
| Revenue from other operations | 25,634,866.85 | 23,569,024.43 | 18,296,531.96 | 16,109,933.67 |
| Total | 1,194,339,510.40 | 1,005,374,520.95 | 1,118,472,456.99 | 1,025,029,076.41 |
Information related to revenue:
Unit: RMB
| Contract classification | Total |
| Commodity type | |
| Including: | |
| Cookware and utensil | 1,168,553,304.46 |
| Other domestic appliances | 25,786,205.94 |
| Classified by business area | |
| Including: | |
| Domestic | 492,079,377.45 |
| Export | 702,260,132.95 |
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 had been signed but hadnot been performed or not yet completed is RMB 4,864,529.55, of which RMB 4,864,529.55 was expected to be recognized as incomein 2023 year.
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 | -460,529.47 | -457,219.85 |
| Investment income from disposal of transactional financial assets | 2,620,258.47 | 1,534,044.99 |
| Interest from term deposit | 5,852,397.27 | 28,822,530.29 |
| Investment income of debt investment during the holding period | 3,828,273.98 | 3,552,197.12 |
| Total | 11,840,400.25 | 33,451,552.55 |
XVIII. 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 (including the write-off of provision for asset impairment) | -1,605,908.96 | |
| Government subsidies included into the current profits and losses (except those that were closely related to the Company's normal business operations, complied with national policies and regulations and continuously available according to certain standard quota or quantity) | 5,811,842.88 | |
| Except the effective hedging business related to the normal operation of the Company, profits and losses from fair value changes caused by the held transactional finance assets and transactional financial liabilities, and investment income acquired from disposal of transactional financial assets, transactional financial liabilities and available-for-sale financial assets | 25,750,454.86 | |
| Other non-operating incomes or expenditures except for the foregoing items | 53,535.90 | |
| Minus: influenced amount of income tax | 6,778,516.96 | |
| Influenced amount of minority shareholders' equities | 34,077.09 | |
| Total | 23,197,330.63 | -- |
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 did 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 return on net assets | Earnings per share: | |
| Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | ||
| Net profit attributable to shareholders of common shares | 13.29% | 1.097 | 1.095 |
| Net profit attributable to shareholders of common shares after deducting non-recurring profit or loss | 12.94% | 1.068 | 1.066 |
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, the nameof foreign organization shall be indicated.None
Zhejiang Supor Co., Ltd.Chairman: Thierry de LA TOUR D' ARTAISE
August 31, 2023