ZhejiangSanhuaIntelligentControlsCo.,Ltd.
2021Semi-AnnualReport
August2021
SectionIImportantNotes,ContentsandDefinitions
TheBoardofDirectors,BoardofSupervisors,Directors,SupervisorsandSeniorManagementofZhejiangSanhuaIntelligentControlsCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethattheinformationpresentedinthisreportshallbeauthentic,accurate,completeandfreefrommaterialmisstatementwhetherduetofalserecord,misleadingstatementorsignificantomission,andtheywillbearbothindividualandjointlegalliabilities.
ZhangYabo,theCompany'slegalrepresentative,YuYingkui,thepersoninchargeoftheaccountingwork,andShengXiaofeng,thepersoninchargeofaccountingdepartment(AccountingOfficer)herebydeclareandwarrantthatthefinancialstatementsinthisreportareauthentic,accurateandcomplete.
Alldirectorsattendedtheboardmeetingtoreviewthisreport.
TheCompanydescribesindetailconcerningthepossiblerisksandcountermeasuresinSectionX"RisksandCountermeasuresoftheCompany"underSectionIII"Management’sDiscussionandAnalysisofOperations".Pleasepayparticularattentiontorelevantcontents.
TheCompanywillnotdistributecashdividend,distributebonusshares,ordistributesharesfromcapitalreserveduringthecurrentreportingperiod.
CONTENTS
SectionIImportantNotes,ContentsandDefinitions ...... 2
SectionIICorporateProfileandKeyFinancialIndicators ...... 6
SectionIIIManagement’sDiscussionandAnalysisofOperations ...... 10
SectionIVCorporateGovernance ...... 26
SectionVEnvironmentalandSocialResponsibility ...... 29
SectionVISignificantEvents ...... 34
SectionVIIChangesinSharesandInformationaboutShareholders ...... 52
SectionVIIIInformationofPreferredShares ...... 59
SectionIXBonds ...... 60
SectionXFinancialReport ...... 63
ListofDocumentsAvailableforInspection
1.The2021Semi-AnnualReportsignedbythechairmanoftheboard.
2.ThefinancialreportsignedandsealedbytheCompany'slegalrepresentative,chieffinanceofficerandpersoninchargeofaccountingdepartment.
3.OriginalcopyofalltheCompany'sdocumentsandannouncementspublishedonthenewspapersdesignatedbyCSRCwithinthereportingperiod.
4.Otherdocumentsavailableforinspection
Definitions
ItemsReferstoDefinitionTheCompany,CompanyReferstoZhejiangSanhuaIntelligentControlsCo.,Ltd.TheArticlesofAssociationsReferstoArticlesofAssociationsforZhejiangSanhuaIntelligentControlsCo.,Ltd.TheCSRCReferstoChinaSecuritiesRegulatoryCommissionSZSEReferstoShenzhenStockExchangeZhejiangSecuritiesRegulatoryBureau
ReferstoZhejiangSecuritiesRegulatoryBureauofChinaSecuritiesRegulatory
CommissionGeneralMeetingReferstoGeneralMeetingofZhejiangSanhuaIntelligentControlsCo.,Ltd.TheBoardofDirectorsReferstoTheBoardofDirectorsofZhejiangSanhuaIntelligentControlsCo.,Ltd.TheBoardofSupervisorsReferstoTheBoardofSupervisorsofZhejiangSanhuaIntelligentControlsCo.,Ltd.YuanReferstoRMB
SectionIICorporateProfileandKeyFinancialIndicatorsI.CorporateInformation
StockabbreviationSanhuaIntelligentControlsStockcode002050StockExchangewherethesharesoftheCompanyarelisted
ShenzhenStockExchangeNameoftheCompanyinChinese
浙江三花智能控制股份有限公司Abbr.oftheCompanynameinChinese(ifany)
三花智控NameoftheCompanyinEnglish(ifany)
ZHEJIANGSANHUAINTELLIGENTCONTROLSCO.,LTD.Abbr.oftheCompanynameinEnglish(ifany)
SANHUALegalRepresentativeZhangYabo
II.ContactsandContactInformation
BoardSecretarySecuritiesAffairsRepresentativeNameHuKaichengWangYutongAddress
No.12St.,No.289XiashaEconomicDevelopment,Hangzhou,Zhejiang,China.
No.219,WoxiAvenue,Meizhu,Xinchang,Zhejiang,China.Tel.0571-280200080575-86255360Fax0571-288766050575-86563888-8288E-mailshc@zjshc.comshc@zjshc.comIII.OtherRelevantInformation
1.Company’scontactinformation
WhetherthereisanychangeintheCompany’sregisteredaddress,officeaddress,zipcode,websiteoremailaddressduringthereportingperiod.
□Applicable√Notapplicable
TherearenochangesintheCompany’sregisteredaddress,officeaddress,zipcode,websiteorCompanyemailaddressduringthereportingperiod.Pleasereferto2020AnnualReportfordetails.
2.Informationdisclosureandplaceofthereport
Whetherthereisanychangeininformationdisclosureandplaceofthereportduringthereportingperiod.
√Applicable□Notapplicable
NewspaperdesignatedbytheCompanyforinformationdisclosure
ChinaSecuritiesJournal,SecuritiesTimesWebsitespecifiedbyCSRCforreleaseoftheSemi-AnnualReport
http://www.cninfo.com.cnPlacewheretheSemi-AnnualReportisavailableforinspection
OfficeoftheBoardofDirectorsNote:ThenewspapersdesignatedbytheCompanywerechangedfromSecuritiesTimesandShanghaiSecuritiesNewstoChinaSecuritiesJournalandSecuritiesTimesonJuly1.
IV.KeyAccountingInformationandFinancialIndicators
WhethertheCompanyperformedaretrospectiveadjustmentorrestatementofpreviousaccountingdata
□Yes√No
Unit:RMBCurrentReportingPeriod
CorrespondingPeriodof
LastYear
YoYChange(%)OperatingRevenue(RMB)7,674,081,761.695,318,178,626.7744.30%NetProfitAttributabletoShareholdersoftheListedCompany(RMB)
823,881,221.70643,481,717.3528.03%NetProfitAttributabletoShareholdersoftheListedCompanyafterDeductingNon-recurringGainsandLosses(RMB)
719,771,655.78582,191,161.6723.63%NetCashFlowGeneratedfromOperationalActivities(RMB)
825,216,623.261,104,651,449.42-25.30%BasicEarningsperShare(RMB/Share)0.230.1827.78%DilutedEarningsperShare(RMB/Share)0.230.1827.78%WeightedAverageROE8.04%6.74%1.30%
AttheEndoftheCurrentReportingPeriod
AttheEndofLastYearYoYChange(%)TotalAssets(RMB)21,007,499,311.9017,032,530,730.1823.34%NetAssetsAttributabletoShareholdersoftheListedCompany(RMB)
10,444,077,103.5910,064,794,519.573.77%
V.DifferencesinAccountingDatabetweenDomesticandOverseasAccountingStandards
1.DifferenceinnetprofitsandnetassetsofthisfinancialreportbetweenInternationalFinancialReportingStandardsandChinaAccountingStandards
□Applicable√Notapplicable
ThereisnodifferenceinnetprofitsandnetassetsofthisfinancialreportbetweenInternationalFinancialReportingStandards(IFRS)andChinaAccountingStandardsinthereportingperiod.
2.DifferenceinnetprofitsandnetassetsofthisfinancialreportbetweenOverseasAccountingStandards
andChinaAccountingStandards
□Applicable√Notapplicable
ThereisnodifferenceinnetprofitsandnetassetsofthisfinancialreportbetweenOverseasAccountingStandardsandChinaAccountingStandardsinthereportingperiod.
VI.ItemsandAmountsofNon-recurringGainsandLosses
√Applicable□Notapplicable
Unit:RMBItemsAmountNoteGainsorLossesfromDisposalofNon-currentAssets(IncludingtheWrite-offfortheAccruedImpairmentofAssets)
-1,623,182.25TheGovernmentSubsidiesIncludedintheCurrentGainsandLosses(ExcludingtheGovernmentSubsidiesCloselyRelatedtoRegularBusinessesoftheCompanyandIssuedintheQuotaorQuantityBasedontheNationalStandards)
64,034,111.05
GainsorLossesAttributedtotheChangesinFairValueforHoldingHeld-for-tradingfinancialassets,DerivativeFinancialAssets,TradingFinancialLiabilities,DerivativeFinancialLiabilitiesandInvestmentIncomefromDisposalofHeld-for-tradingfinancialassets,DerivativeFinancialAssets,TradingFinancialLiabilities,DerivativeFinancialLiabilitiesandOtherDebtInvestment,ExcludingHedgingBusinessesRelatedtotheRegularBusinessOperationoftheCompany
60,752,561.20
Inordertoavoidthepriceriskofrawmaterialsandpreventexchangeraterisk,theCompanyanditssubsidiarieshavecarriedoutderivativesbusiness,includingfuturescontractsandforeignexchangeforwardcontracts.FromJanuarytoJune2021,thefuturesincomewasRMB
19.8287millionandthe
forwardincomewasRMB
40.9239million;fromJanuary
toJune2020,thefuturesincomewasRMB1.0049millionandtheforwardloss
wasRMB24.4147million.Thus,theamountofnon-recurringprofitandlossitemsfluctuatedgreatlyinthefirsthalfofthetwoyears.Meanwhile,theexchangelossfromJanuarytoJune2021wasRMB51.1292million,andtheexchangegainfromJanuarytoJune2020wasRMB45.6796million.AccordingtotheExplanatoryAnnouncementNo.1ofInformationDisclosureofListedCompanies–Non-recurringGainsandLosses,foreignexchangegainsandlossesarerecurringgainsandlosses,whilefuturesandforwardgainsandlossesarenon-recurringgainsandlosses.Non-operatingIncomeandExpendituresOtherThantheAbove891,333.20OtherGainsandLossesItemsthatFitintheDefinitionofNon-recurringGainsandLosses
702,064.60Less:ImpactofIncomeTax20,201,305.62ImpactofMinorityEquity(aftertax)446,016.26Total104,109,565.92--Thereasonsforthenon-recurringgainsandlossesitemsdefinedorlistedintheExplanatoryAnnouncementNo.1ofInformationDisclosureofListedCompanies–Non-recurringGainsandLossesaredefinedasrecurringgainsandlossesitems
□Applicable√Notapplicable
Inthereportingperiod,theCompanydidnotdefineanynon-recurringgainsandlossesitemsdefinedandlistedintheExplanatoryAnnouncementNo.1ofInformationDisclosureofListedCompanies–Non-recurringGainsandLosses,asrecurringgainsandlossesitems.
SectionIIIManagement’sDiscussionandAnalysisofOperations
I.ThePrincipalBusinessoftheCompanyduringtheReportingPeriod
1.Mainbusiness
TheCompanyadherestothe"FocusonLeading,Innovation,Transcendence"businesspath,concentratingontheresearchandapplicationofheatpumptechnologyandthermalmanagementsystemproducts,focusingonthedevelopmentofenvironmentalthermalmanagementsolutionsforheatexchangeandtemperatureintelligentcontrol,andiscommittedtotheprofessionaloperationinthefieldsofbuildingHVAC,electricalequipmentandautomotivethermalmanagement.Accordingtothedifferentstagesandcharacteristicsofstrategicbusinessandtheirdevelopment,theCompany'sbusinessismainlydividedintorefrigerationandairconditioningelectricalcomponentsbusinessandautomotivecomponentsbusiness.ThemainproductsofrefrigerationandA/CelectricalpartsbusinessincludeFour-wayReversingValve,ElectronicExpansionValve,SolenoidValve,MicrochannelHeatExchanger,OmegaPump,etc.,whicharewidelyusedinA/C,refrigerator,coldchainlogistics,dishwasherandotherfields;themainproductsofautomotivecomponentsbusinessincludeThermalExpansionValve,ReceiverDrier,ElectronicExpansionValve,ThermalManagementIntegratedModulefornewenergyvehicle,ElectronicWaterPump,etc.,whicharewidelyusedinbothtraditionalfuelvehiclesandnewenergyvehicle.Duringthereportingperiod,theCompany'smainbusinessanditsbusinessmodelhavenotchanged.
2.Industrydevelopment
(1)RefrigerationandairconditioningelectricalcomponentsindustryChinaisthelargestmanufacturingbaseofA/Candrefrigeratorsintheworld,anditsproductionandsalesvolumeranksfirstglobally.Inlinewiththetrendofenvironmentalprotectionintheworld,energy-savinginverterandintelligenttechnologyhavebecomethetrend,whichputsforwardaseriesofnewrequirementsforthemarketofcontrolcomponents,andalsobringsnewdevelopmentopportunities.Asaleadingenterpriseintherefrigerationcontrolcomponentsindustry,theCompanywillfollowthetrend,firmlyseizethisopportunityanddevelopsteadily.
(2)Automotivecomponentsindustry
Theglobalautomobileindustryhasbeendevelopingrapidly,whichalsodrivesthemarketdemandofautomotiveA/Candthermalmanagementproductstocontinuetogrowsubstantially.Inrecentyears,thedevelopmentofnewenergyvehicleshasbecomeacertaintrend,whichputsforwardhigherandmoreupdatedrequirementsforA/Candthermalmanagementproductsnomatterinhybrid,pureelectricorhydrogenenergyvehicles.Focusingonthein-depthresearchonA/Candthermalmanagementsystemofnewenergyvehicles,theCompanyhasgraduallydevelopedfromcomponentstomoduleandsubsystems,andhasbecomethecooperativepartnerofValeo,Volkswagen,MercedesBenz,BMW,Volvo,Toyota,GM,Geely,BYD,SAIC,NIO,etc.
3.IndustrypositionoftheCompany
TheCompanyistheworld'slargestmanufacturerofrefrigerationcontrolcomponentsandtheworld'sleadingmanufacturerofautomotiveA/Candthermalmanagementsystemcontrolcomponents."Sanhua"refrigerationintelligentcontrolcomponentshavebecomeaworld-famousbrand,andastrategicpartnerofmanyautomobileenterprisesandair-conditioningrefrigerationappliancemanufacturersintheworld.Aftermorethan30yearsofdevelopment,theCompanyhasestablishedaleadingpositionintheglobalmarketofrefrigerationandautomotivethermalmanagement.ThemarketshareoftheCompany'sElectronicExpansionValve,Four-wayReversingValve,SolenoidValve,MicrochannelHeatExchanger,AutomotiveElectronicExpansionValve,ThermalManagementIntegratedModulefornewenergyvehicle,OmegaPumpranksfirstglobally.ThemarketshareoftheCompany'sServiceValve,VehicleThermalExpansionValveandReceiverDrierisintheleadingpositionintheworld.II.CoreCompetitivenessAnalysis
1.Clearstrategiclayout
TheCompanyadherestothe"FocusonLeading,Innovation,Transcendence"businesspath,takestheresearchandapplicationofheatpumptechnologyandthermalmanagementsystemproductsasthecore,firmlygraspsthedevelopmentthemeofenergyconservation,environmentalprotectionandintelligentcontrol,upgradesfrom"mechanicalpartsdevelopment"to"systemcontroltechnologysolutiondevelopmentofelectroniccontrolintegration".TheCompany’sproductseriesareexpandedfromhouseholdA/CandrefrigeratorcomponentstothefieldofcommercialA/Candcommercialrefrigeration,andextendingtothedirectionofinvertercontroltechnologyandsystemintegrationandupgrading.Meanwhile,aftertheinjectionofautomotivebusiness,itgivesfullplaytothesynergeticeffectwiththeoriginalbusiness,continuestodeepentheresearchanddevelopmentofautomobileA/Candnewenergyvehiclethermalmanagementsystemcomponents,andactivelyexploresthedeeperapplicationofthermalmanagementcomponentsandsubsystemsintheautomotivefield,soastoprovideglobalcustomerswithcompetitiveenvironmentalintelligentcontrolsolutions.
2.Technologyleading,customeroriented
Asanationalhigh-techenterprise,theCompanyhasalwaysadheredtothetechnologicalrouteofindependentdevelopmentandinnovation.Fordecades,ithasfocusedonthefieldofintelligentcontrolandvigorouslycultivatedcoretechnologieswithindependentintellectualpropertyrights.Ithasbeenauthorized2,529patentsbothdomesticandabroad,including1,235inventionpatents.ThefirstpriorityoftheCompanyistomeettheneedsofcustomerswithallproducts,servicesandquality.
3.Qualityassurance,scaleeconomyeffect
TheCompany'sproductscoverrefrigerationA/Celectricalcomponentsandautomotivecomponentsindustry.ThemarketshareoftheCompany'sElectronicExpansionValve,Four-wayReversingValve,SolenoidValve,MicrochannelHeatExchanger,AutomotiveElectronicExpansionValve,ThermalManagementIntegratedModulefornewenergyvehicle,OmegaPumpranksfirstglobally.ThemarketshareofServiceValve,VehicleThermalExpansionValveandReceiverDrierisintheleadingpositionintheworld.TheCompanyhasestablishedacompleteandstrictqualityassurancesystem,achievedISO9001,IATF16949,QC080000qualitysystemcertification.TheCompanywontheNationalQualityAward,ZhejiangQualityAward,andwonthehighcommentsfromJCI,Daikin,Carrier,Gree,Midea,Haier,Toyota,Benz,Volkswagen,Valeoandotherwell-known
enterprisesathomeandabroad.
4.AdvantagesofglobalmarketingnetworkandproductionbaseSincethe1990s,theCompanyhasfocusedonopeningupinternationalmarket,andestablishedoverseassubsidiariesinJapan,SouthKorea,Singapore,theUnitedStates,Mexico,Germanyandotherplacestobuildaglobalmarketingnetwork.Atthesametime,itestablishedoverseasproductionbasesintheUnitedStates,Poland,Mexico,Vietnamandotherplaces,andhaspreliminaryabilitytocopewithproductionglobalization.Andinpractice,wehavetrainedanumberofmanagementtalentswhocanmeettherequirementsofbusinessdevelopmentindifferentcountriesandregions.III.MainBusinessAnalysisOverviewInthefirsthalfof2021,theCompanyactivelyrespondedtothechangesandchallenges,andtheoveralloperationoftheCompanywereelevatedevenundertheharshbackgroundofcontinuedimpactfromoverseasepidemic,sharpriseininternationalshippingpricesandrawmaterialprices,appreciationofRMBexchangerateagainstUSdollar.SpecifictotheindustryinwhichtheCompanyoperates,therefrigerationandairconditioningelectricalpartsbusinesshasmaintainedagrowthtrendduetothestablerecoveryofthehomeapplianceindustryandtheupgradingofconsumptionconcept.Theautomotivecomponentsbusinesscontinuestoimproveduetotheprosperityofthenewenergyvehiclemarket,whichdrivestherapidgrowthofrevenue.Duringthereportingperiod,theoperatingrevenueisRMB7.674billion,ayear-on-yearincreaseof44.30%.TheoperatingprofitisRMB1.008billion,ayear-on-yearincreaseof36.29%.ThenetprofitattributabletoshareholdersoflistedcompanyisRMB824million,ayear-on-yearincreaseof28.03%.TheoperatingrevenueofrefrigerationandairconditioningelectricalcomponentsbusinessisRMB5.563billion,ayear-on-yearincreaseof
27.37%.TheoperatingrevenueofautomotivecomponentsbusinessisRMB2.111billion,ayear-on-yearincreaseof122.14%.(I).Activelyimproveefficiency,reducecostsandoptimizethelayoutofglobalization
1.RefrigerationandairconditioningelectricalcomponentsbusinessIntermsoftherefrigerationandairconditioningelectricalcomponentsbusiness,theCompanyimprovesefficiencyandreducescoststhroughautomationtransformation,leanproduction,staffreductionandefficiencyincrease,procurementcostsreduction,technologycostsreductionandothermeasures.AlthoughAWECO'sbusinessisaffectedbytheEuropeanepidemic,ithasrealizedpositivenetprofitmonthlythroughtappingpotentialsofinternalmanagementandsupplychaintransformation.AfterrelocationofthenewplantinVietnamSanhua,ithasbeenrecognizedbymajorcustomersintheUnitedStates,andcostsofsomeproductshavebeenlowerthanthatinChina.Inaddition,theCompanyactivelyexpandskitchenappliancesandotherproducts,soastofurtherbroadentheCompany'snewdevelopmentfields,continuouslyimproveitssustainableprofitabilityandmarketcompetitiveness.
2.Automotivecomponentsbusiness
Theautomotivecomponentsbusinesswillcontinuetosupportitsstrategiccustomers.Inordertosatisfytheincreasingneedofcapacity,theCompanyorderlypromotestheproductionlineconstructionandmassproduction
projectoftheMexicanfactoryandShaoxingBinhaifactory.Onthepremiseofensuringtheprojectsofexistingcustomers,theCompanydevelopscompetitiveproducts,technologies,andactivelyobtainsneworders.Intermsofinternalmanagement,theCompanytakesfirst-classenterprisesasmodels,establishesaglobalqualitymanagementsystem,soastoimprovethequalitymanagementoffactoriesathomeandabroad.Facingthechallengeofthecontinuousriseofrawmaterialpricesandfreightexpenses,theCompanysparesnoefforttopromotethecostsreduction,efficiencyincrease,andlinkageriseofproductpricesthroughactivecommunicationwithdownstreamcustomers.(II).ContinuetopromoteinvestmentprojectsandimprovetheprofitabilityTheCompany'sconvertiblebondswerelistedandtradedinShenzhenStockExchangeonJune30,2021,raisingRMB3billion,whichismainlyusedin"Constructionprojectofcommercialrefrigerationandairconditioningintelligentcontrolcomponentswithacapacityof65millionsetsperyear"and"Technicaltransformationprojectofhigh-efficiencyandenergy-savingcontrolcomponentsforrefrigerationandairconditioningwithacapacityof
50.5millionsetsperyear”.TheimplementationoftheseprojectswillhelppromotethedevelopmentoftheCompany'sproductstowardsamoreefficientandenergy-savingdirection,furtherimprovetheCompany'sbusinessscaleandcompetitiveadvantage,optimizethebusinessstructure,improvetheCompany'ssustainableprofitability,andlayasolidfoundationfortheCompanytoachievemediumandlong-termstrategicdevelopmentgoals.(III).EnhanceproductstrengthandimprovepatentlayoutofstrategicproductsDuringthereportingperiod,theCompanyinvestedRMB352millioninR&D,ayear-on-yearincreaseof46.73%.TheCompanysparesnoeffortinenhancingitsproductstrengthenthroughcontinuousR&Dinvestment.AndtheCompanyparticipatesinmarketcompetitionwithnewproductsandnewtechnologiesthroughcontinuousoptimizationiteration.Intermsofpatentlayout,theCompanywillcontinuetoimplement"High-qualitypatentsandhigh-valuepatents"bypromotingthepatentlayoutofkeyproducts.Bytheendofthereportingperiod,2,529patentshavebeenauthorizedathomeandabroad,including1,235inventionpatents.Changesinkeyfinancialdataoverthecorrespondingperiodoflastyear
Unit:RMBCurrentReportingPeriod
CorrespondingPeriodofLastYear
YoYChange(%)NoteofChangeOperatingRevenue7,674,081,761.695,318,178,626.7744.30%OperatingCost5,601,811,479.623,839,626,004.7045.89%SellingExpenses321,908,769.46257,442,500.5425.04%AdministrativeExpenses374,431,536.21315,350,745.1518.73%FinancialExpenses49,304,431.90-29,893,397.04264.93%
Mainlyduetotheincreaseofforeignexchangelossinthe
currentperiodIncomeTaxExpenses170,607,121.1699,017,348.3772.30%
Mainlyduetotheincreaseoftotalprofitin
thecurrentperiod,anddifferenceresultedfromadjustmentoffinalsettlementofincometax
R&DInvestments352,175,549.62240,012,928.3846.73%
MainlyduetotheincreaseofR&Dpersonnelsalary+investmentinmaterialandpower
NetCashFlowsfromOperatingActivities
825,216,623.261,104,651,449.42-25.30%
Mainlyduetoincreaseinpurchasinggoodsandreceivinglaborservices,decreaseinnetcashinflowfromsales,andincreaseinemployeecompensation
NetCashFlowsfromInvestmentActivities
-313,010,482.60-679,392,344.6653.93%
Mainlyduetotheincreaseinnetredemptionoffinancialproductsandtheincreaseinthepurchaseoffixed,intangibleandotherlong-termassetsNetCashFlowsfromFinancingActivities
2,299,821,228.74310,293,217.58641.18%
Mainlyduetotheissuanceofconvertiblebondsinthecurrent
periodNetIncreaseinCashandCashEquivalents
2,794,780,733.88709,896,200.36293.69%WhetherthereissignificantchangeinCompany’sprofitstructureorprofitsourceduringthereportingperiod
□Applicable√Notapplicable
ThereisnosuchcaseduringthereportingperiodRevenuestructure
Unit:RMB
CurrentReportingPeriodCorrespondingPeriodofLastYear
YoYChange(%)Amount
Proportiontototalrevenue
Amount
ProportiontototalrevenueTotalRevenue7,674,081,761.69100%5,318,178,626.77100%44.30%ClassifiedbyIndustryGeneral7,674,081,761.69100.00%5,318,178,626.77100.00%44.30%
EquipmentManufacturingIndustryClassifiedbyProductsRefrigerationA/CElectricalComponents
5,563,260,796.5772.49%4,367,942,431.6482.13%27.37%AutomotiveComponents
2,110,820,965.1227.51%950,236,195.1317.87%122.14%ClassifiedbyRegionDomestic3,703,718,671.8348.26%2,479,768,382.7246.63%49.36%Overseas3,970,363,089.8651.74%2,838,410,244.0553.37%39.88%Industries,productsorregionsaccountingformorethan10%oftheCompany’soperatingrevenueoroperatingprofit
√Applicable□Notapplicable
Unit:RMBOperating
revenue
OperatingcostGrossmargin
YoYChange(%)
ofoperatingrevenue
YoYChange(%)ofoperatingcost
YoYChange(%)ofgrossmarginClassifiedbyindustryGeneralEquipmentManufacturingIndustry
7,674,081,761.695,601,811,479.6227.00%44.30%45.89%-0.80%ClassifiedbyproductRefrigerationA/CElectricalComponents
5,563,260,796.574,015,609,936.5527.82%27.37%26.91%0.26%AutomotiveComponents
2,110,820,965.121,586,201,543.0724.85%122.14%134.80%-4.06%ClassifiedbyregionDomestic3,703,718,671.832,655,946,262.7528.29%49.36%52.18%-1.33%Overseas3,970,363,089.862,945,865,216.8725.80%39.88%40.66%-0.41%InthecasethattheCompany'smainbusinessdatastatisticsareadjustedduringthereportingperiod,theCompany'smainbusinessdataofthelatestreportingperiodwereadjustedaccordingtothestatisticsattheendofthelastreportingperiod
□Applicable√Notapplicable
Explanationsonrelevantdatachangedformorethan30%onayear-over-yearbase
√Applicable□Notapplicable
Theoperatingrevenueofautomotivecomponentsbusinessisincreasedby122.14%overthesameperiodoflastyear.Itismainlyduetothecontinuousimprovementofnewenergyvehiclemarket.Thus,itdrivesautomotivecomponentsbusinesstogrowrapidlyandoperatingcostsareincreasedcorrespondingly.IV.Non-MainBusinessAnalysis
√Applicable□Notapplicable
Unit:RMBAmount
Proportiontonetprofit
NoteofChangeSustainability
InvestmentIncome
97,400,173.019.67%
Gainsandlossesoffuturescontractsettlement,foreignexchangeforwardcontractsettlement,bankfinancialproduct,etc.
No
GainsandLossesfromChangeofFairValue
-32,695,697.38-3.25%
Floatingincomeoffuturescontracts,foreignexchangeforwardcontracts,bankfinancialproducts,etc.
No
Non-operatingIncome
2,472,160.140.25%
Incomefromnonpayment,compensationandliquidateddamages,gainsfromretirementoffixedassets,etc.
No
Non-operatingExpenditures
3,604,181.700.36%
Lossonretirementoffixedassets,litigationcompensationloss,etc.
NoCreditImpairmentLoss
-48,442,168.40-4.81%Baddebtloss,etc.NoAssetsImpairmentLoss
-18,614,580.55-1.85%
Lossonimpairmentofinventories,etc.
NoGainsonDisposalofProperties
400,172.510.04%
Gainsondisposaloffixedassets
No
OtherGains72,081,481.227.16%Governmentsubsidies,etc.
Thegovernmentgrantsof
VATrefundofcivilwelfare
enterprisesandsoftware
productVATexceedingtax
burdenaresustainable,
whiletherestarenot
sustainableV.AnalysisofAssetsandLiabilities
1.Materialchangesofassets
Unit:RMBAttheEndofCurrent
ReportingPeriod
AttheEndofLastYearYoYChange(%)
NoteofsignificantchangeAmount
Percentageoftotalassets
Amount
PercentageoftotalassetsCashandBank
Balance
6,301,888,182.
30.00%
3,489,687,568.
20.49%9.51%
MainlyduetotheissuanceofconvertiblebondsinthecurrentperiodAccountsReceivable
3,100,856,902.
14.76%
2,355,613,299.
13.83%0.93%
Inventories
2,917,803,847.
13.89%
2,307,761,706.
13.55%0.34%
Investmentproperty
9,398,176.540.04%10,067,588.960.06%-0.02%Long-termEquityInvestment
17,828,507.380.08%15,219,616.680.09%-0.01%FixedAssets
3,965,615,647.
18.88%
3,839,408,059.
22.54%-3.66%
ConstructioninProgress
914,010,795.5
4.35%628,730,529.073.69%0.66%Short-termBorrowings
521,381,193.6
2.48%383,088,296.602.25%0.23%ContractualLiabilities
44,096,560.860.21%42,581,607.670.25%-0.04%Long-termBorrowings
17,425,691.864.37%
1,707,918,994.
10.03%-5.66%
Non-currentliabilitiesduewithinoneyear
1,012,141,338.
4.82%130,553,923.870.77%4.05%BondsPayable
2,588,449,353.
12.32%12.32%
Mainlyduetotheissuanceofconvertiblebondsinthecurrentperiod
2.Mainoverseasassets
√Applicable□Notapplicable
ContentofAssets
Formation
AssetsScale(RMB)
Location
Operation
Mode
Controlmeasurestoensureassetsafety
Income(RMB)
Proportionofoverseasassetsinnetassets
oftheCompany
Whetherthereissignificantimpairment
riskSanhuaInternationalInc.(USA)(Consolidated)
EquityInvestment
1,676,659,
000.33
TheUnitedStates
R&D,Manufacturing,MarketingandInvestmentManagement
Financialsupervisionandexternalaudit
108,267,40
6.20
No
SanhuaInternationalSingaporePTE.Ltd.(Consolidated)
EquityInvestment
3,020,615,
669.89
Singapore
Manufacturing,MarketingandInvestmentManagement
Financialsupervisionandexternalaudit
48,785,981.05
No
3.Assetsandliabilitiesmeasuredatfairvalue
√Applicable□Notapplicable
Unit:RMBItems
Openingbalance
Profitandlossoffairvaluechangeinthecurrentperiod
Cumulativechangesinfairvalueincludedinequity
Impairmentaccruedinthecurrentperiod
Currentpurchaseamount
Currentsaleamount
Otherchanges
ClosingbalanceFinancialAssets1.Held-for-tradingfinancialassets(ExcludingDerivativeFinancialAssets)
752,224,861.7
-613,379.14
562,087,170.
189,524,312.14
2.Derivative
Financial
58,330,486.53
-31,937,779.9
26,392,706.
AssetsSubtotal
810,555,348.3
-32,551,159.0
562,087,170.
215,917,018.76Total
810,555,348.3
-32,551,159.0
562,087,170.
215,917,018
.76FinancialLiabilities
7,939,957.91-213,573.29
7,726,384.6
WhethertherewereanymaterialchangesonthemeasurementattributesofmajorassetsoftheCompanyduringthereportingperiod:
□Yes√No
4.Limitationofassetrightsasoftheendofreportingperiod
ItemsClosingBookvalue(RMB)ReasonsforbeingrestrictedCashandBankBalance106,963,410.23
Margindeposits,margindepositsinfuturesinstitutions,litigationfrozenbankdepositsNotesReceivable1,579,929,231.31PledgeforfinancingTotal1,686,892,641.54--VI.AnalysisofInvestments
1.Overview
√Applicable□Notapplicable
InvestmentduringtheReportingPeriod
(RMB)
InvestmentovertheCorrespondingPeriod
ofLastYear(RMB)
FluctuationRate(%)
1,581,000,000.000.000.00%
2.Significantequityinvestmentduringthereportingperiod
□Applicable√Notapplicable
3.Significantnon-equityinvestmentduringthereportingperiod
□Applicable√Notapplicable
4.Financialassetinvestment
(1)SecuritiesInvestments
□Applicable√Notapplicable
(2)DerivativesInvestments
√Applicable□Notapplicable
Unit:RMBin10thousand
Operationpartyofderivativesinvestment
Whetherrelatedparty
Whetherrelatedtransaction
Typeofderivativesinvestment
Initialinvestmentamountofderivativesinvestment
Initialdate
Terminationdate
Openinginvestmentamount
Purchasedamountduringthereportingperiod
Soldamountduringthereportingperiod
Impairmentprovisions(ifany)
Closinginvestmentamount
ProportionofclosinginvestmentamounttotheCompany’snetassetsattheendofthereportingperiod
Actualgainorlossduringthereportingperiod
FuturesCompany,Bank
NoNo
Futurescontracts,foreignexchangeforwardcontracts,etc.Total----CapitalsourceofderivativesinvestmentCompany’sself-fundProsecution(ifapplicable)NotapplicableAnnouncementdateforapprovalsofderivativesinvestmentfromtheboardofdirectors(ifany)Announcementdateforapprovalsofderivativesinvestmentfromthegeneralmeeting(ifany)Riskanalysisandcontrolmeasures(includingbutnotInordertoavoidthepriceriskofrawmaterialsandexchangeraterisk,theCompanyanditssubsidiarieshavecarriedoutderivative
ZhejiangSanhua
limitedto,marketrisk,liquidityrisk,creditrisk,operationalrisk,legalrisk,etc.)ofholdingderivativesduringthereportingperiod
business,includingfuturescontractsandforeignexchangeforwardcontracts.The
IntelligentCompany
relevantprovisionslistedintheManagementMeasuresforFutureHedgingBusinessa
Companynd
HedgingBusiness.Changeofmarketpriceorfairvalueofinvestedderivativesduringthereportingperiod;specificmethods,relatedassumptionsandparametersettingofthederivatives’fairvalueanalysisshouldbedisclosed
--
Duringthecurrentreportingperiod,whethertherewassignificantchangesofaccountingpoliciesandaccountingprinciplesoftheCompany’sderivativescomparingtothepriorreportingperiod
NotapplicableSpecificopinionsontheCompany’sderivativesinvestmentsandriskcontrolfromindependentdirectors
Notapplicable
VII.DisposalofSignificantAssetsandEquity
1.Disposalofsignificantassets
□Applicable√Notapplicable
Duringthereportingperiod,therewasnodisposalofsignificantassets
2.Saleofsignificantequity
□Applicable√Notapplicable
VIII.AnalysisofMajorSubsidiariesandInvestees
√Applicable□Notapplicable
Informationaboutmajorsubsidiaries,andinvesteesthatcontributeabove10%oftheCompany’snetprofit
Unit:RMBCompany
name
Companytype
Principalbusiness
Registeredcapital
Totalassets
Netassets
Operatingrevenue
Operatingprofit
Netprofit
ZhejiangSanhuaRefrigerationGroupCo.,Ltd.
Subsidiary
RefrigerationandA/Celectricalcomponentsmanufacturingandmarketing
RMB250million
3,637,761,
589.65
3,279,261,
854.94
774,323,41
5.75
111,526,87
9.24
95,553,871
.33
HangzhouSanhuaMicrochannelHeatExchangerCo.,Ltd.
Subsidiary
RefrigerationandA/Celectricalcomponentsmanufacturingandmarketing
RMB360million
1,800,554,
246.62
1,108,549,
765.66
770,019,63
9.79
81,182,913
.69
63,929,318
.98
ZhejiangSanhuaTradingCo.,Ltd.
Subsidiary
RefrigerationandA/Celectricalcomponentsmarketing
RMB50million
2,537,279,
807.18
123,385,28
1.81
1,945,291,
190.28
2,372,959.
843,027.66
ZhejiangSubsidiaryAutomotivRMB1.465,169,808,3,247,619,2,110,820,308,193,12258,125,37
SanhuaAutomotiveComponentsCo.,Ltd
ecomponentsmanufacturingandmarketing
billion588.81222.58965.126.389.09
ZhejiangSanhuaCommercialRefrigerationCo.,Ltd
Subsidiary
RefrigerationandA/Celectricalcomponentsmarketing
RMB
1.64929
billion
1,707,953,
772.71
1,646,698,
303.74
-2,147,004.
-2,147,004.
SanhuaInternationalLimited(USA)(Consolidated)
Subsidiary
RefrigerationandA/Celectricalcomponentsmanufacturingmarketingandinvestmentmanagement
USD37.55million
1,676,659,
000.33
359,644,42
5.37
1,648,045,
127.66
116,132,36
6.44
108,267,40
6.20
SanhuaInternationalSingaporePTE.Ltd.(Consolidated)
Subsidiary
RefrigerationandA/Celectricalcomponentsmanufacturingmarketingandinvestmentmanagement
USD
105.57983
3million
3,020,615,
669.89
627,453,69
3.86
2,727,490,
087.22
62,021,135
.5448,785,981
.05
Informationaboutobtaininganddisposalofsubsidiariesduringthereportingperiod
□Applicable√Notapplicable
IX.StructuralEntitiesControlledbytheCompany
□Applicable√Notapplicable
X.RisksandCountermeasuresoftheCompany
(1)Riskofpricefluctuationofrawmaterials
TherawmaterialsneededbytheCompanyarecopperandaluminum,whichaccountforalargeproportionofthecostcompositionoftheproducts.Therefore,thefluctuationofthemarketpriceofrawmaterialswillbringlargecostpressuretotheCompany.TheCompanywillreducetheadverseimpactofrawmaterialpricefluctuationsthroughtheestablishmentoflinkagepricingmechanism,hedgingoperationofcommodityfutures,andtimelynegotiationwithcustomers.
(2)Theriskofrisinglaborcost
Thelaborcostsarerisingyearbyyear,whichreducestheprofitmarginoftheCompanytoacertainextent.Inthefuture,theCompanywillcontinuetoimprovethelevelofintelligentmanufacturingbycontinuouslypromotingleanproduction,processimprovementandtechnicaltransformation.
(3)Exchangeratefluctuationrisks
TheCompany'sexportvolumeislarge,involvingNorthAmerica,Europe,Japan,SoutheastAsiaandotherregions.Duetothechangesinregionaltradepolicies,theCompany'sdailyoperationwillbeaffected.TheCompanydealswithinterregionaltraderisksthroughtransferringproductioncapacitytoforeigncountries.Inaddition,thefluctuationofexchangeratewillalsohaveacertainimpactontheprofit.Accordingtotheactualsituation,theCompanydealswithandreducesthisriskbymeansofforwardforeignexchangesettlementandestablishingoverseasproductionbasesintheUnitedStates,Poland,Mexico,Indiaandotherplaces.
SectionIVCorporateGovernance
I.AnnualGeneralMeetingandExtraordinaryGeneralMeetingsConvenedDuringthe
ReportingPeriod
1.AnnualGeneralMeetingconvenedduringthecurrentreportingperiodMeetingNature
Proportionofparticipatinginvestors
ConvenedDateDisclosureDateDisclosureIndex
FirstExtraordinaryGeneralMeetingin2021
ExtraordinaryGeneralMeeting
69.04%February25,2021February26,2021
Theannouncementoftheresolutionofthefirstextraordinarygeneralmeetingofshareholdersin2021No.2021-012waspublishedinSecuritiesTimes,ShanghaiSecuritiesNewsandCNINFO
2020AnnualGeneralMeetingofShareholders
AnnualGeneralMeetingofShareholders
69.77%April16,2021April17,2021
Theannouncementontheresolutionoftheannualgeneralmeetingofshareholdersin2020(2021-029)waspublishedinSecuritiesTimes,ShanghaiSecuritiesNewsandCNINFO.
SecondExtraordinaryGeneralMeetingin2021
ExtraordinaryGeneralMeeting
67.29%June24,2021June25,2021
Theannouncementontheresolutionofthesecondextraordinarygeneralmeetingofshareholdersin2021(2021-055)waspublishedinSecuritiesTimes,ShanghaiSecurities
NewsandCNINFO.
2.Extraordinarygeneralmeetingsconvenedattherequestofpreferredshareholderswithresumedvotingrights
□Applicable√Notapplicable
II.Changesofdirectors,supervisorsandseniormanagementpersonnel
√Applicable□Notapplicable
NamePositionTypeDateReasons
PanYalan
IndependentDirector
Appointment
February25,2021
Mr.ZhuHongjun,anindependentdirector,resignedonDecember28,2020andcontinuedtoperformthedutiesofindependentdirectorandtheauditcommitteeoftheboardofdirectors.OnFebruary25,2021,thegeneralmeetingofshareholdersagreedtoappointMs.PanYalanasanindependentdirectoroftheCompany.Ms.PanYalanwilltaketherelevantpositionofMr.ZhuHongjunintheauditcommitteeofthesixthboardofdirectorsoftheCompany.
III.Profitdistributionandconversionofcapitalreservetosharecapitalduringthereporting
period
□Applicable√Notapplicable
TheCompanywillnotdistributecashdividend,distributebonusshares,ordistributesharesfromcapitalreserveduringthecurrentreportingperiod.IV.TheImplementationofanEquityIncentivePlan,EmployeeStockIncentivePlan,or
OtherIncentivePlans
√Applicable□Notapplicable
OnJune8,2021,The18thextraordinarymeetingofthe6thboardofdirectorsandthe16thextraordinarymeetingofthe6thboardofsupervisorsapprovedTheProposalonAdjustingRepurchasePriceofRestrictedStockIncentivePlanin2020,TheProposalonRepurchaseandCancellationofSomeRestrictedStocks,TheProposalontheAchievementofUnlockingConditionsoftheFirstVestingPeriodforthe2020StockIncentivePlan,andTheProposalonAdjustingtheRepurchasePriceoftheRestrictedStockIncentivePlanin2018.Thespecificcontentsoftheannouncementsaredisclosedasfollows:
ImportantissuesDisclosureDateDisclosureIndex
ontheResolutionofthe18thInterimMeetingofthe6thBoardofDirectors
June9,2021http://www.cninfo.com.cn
ontheResolutionofthe16thInterimMeetingofthe6thBoardofSupervisors
June9,2021http://www.cninfo.com.cn
AnnouncementAnnouncement
onAdjustingtheRepurchasePriceoftheRestrictedStockIncentivePlanin2018
June9,2021http://www.cninfo.com.cn
AnnouncementAnnouncement
onadjustingtheexercisepriceofstockappreciationrightincentiveplanin2018
June9,2021http://www.cninfo.com.cn
AnnouncementAnnouncement
onAdjustingRepurchasePriceofRestrictedStockIncentivePlanin2020
June9,2021http://www.cninfo.com.cn
AnnouncementAnnouncement
ontheAchievementofUnlockingConditionsoftheFirstVestingPeriodforthe2020StockIncentivePlan
June9,2021http://www.cninfo.com.cn
AnnouncementAnnouncement
onCancellationofStock
AnnouncementAppreciation
Right
June9,2021http://www.cninfo.com.cn
AppreciationAnnouncement
onRepurchaseandCancellationofSomeRestrictedStocks
June9,2021http://www.cninfo.com.cn
SectionVEnvironmentalandSocialResponsibilityI.Significantenvironmentalissues
WhethertheCompanyoranyofitssubsidiariesshouldbecategorizedasacriticalpollutantenterprisedefinedbyNationalEnvironmentalProtectionDepartment
√Yes□No
NameofCompanyorsubsidiary
Nameofmainpollutantsandcharacteristicpollutants
Emissionmode
Numberofoutlets
Distributionofemission
outlets
Emissionconcentration
Emissionstandards
Totalemissions
Approvedtotalemission
Overstandardemission
ZhejiangSanhuaIntelligentControlsCo.,Ltd
CODNanotube1North≦500mg/L
ThelimitationofCODinGB8978-19
IntegratedWastewaterEmissionStandardis500mg/L
21.53T
61.867T
/year
Notexceedingthestandard
ZhejiangSanhuaIntelligentControlsCo.,Ltd
AmmoniaNitrogen
Nanotube1North≦35mg/L
ThelimitationlistedinDB33/887-2013Indirect
EmissionLimitsofNitrogen
andPhosphorusPollutants
fromIndustrialWastewateris35mg/L
2.153T
6.186T
/year
Notexceedingthestandard
ZhejiangSanhuaIntelligent
SO2
Directemission
1North≦50mg/m3
Thelimitation
listedin
0.402T2.15T/year
Notexceeding
ControlsCo.,Ltd
GB13271-2
EmissionStandardof
Air
Pollutants
forBoilersis50mg/m3
thestandard
ZhejiangSanhuaIntelligentControlsCo.,Ltd
Nitrogen
Oxide
Directemission
1North≦50mg/m3
AccordingtothelowNitrogenemissionrequirementsoflocalgovernment
,thelimitvalueofgas-firedboileris50mg/m3
1.879T
10.06T
/year
Notexceedingthestandard
ZhejiangSanhuaRefrigerationGroupCo.,Ltd
CODNanotube1South≦500mg/l
ThelimitationfromGB8979-1996is500mg/L
2.377T
9.205T
/year
Notexceedingthestandard
ZhejiangSanhuaRefrigerationGroupCo.,Ltd
TotalCopper
Nanotube1South≦
2.0mg/l
ThelimitationfromGB8979-1996is
2.0mg/l
0.079T/
Notexceedingthestandard
ConstructionandoperationofpollutioncontrolfacilitiesAdheringtotheadvancedmanagementconcept,theCompanytakes"developingenergy-savingandlow-carboneconomy,creatingagreenqualityenvironment"asitsownresponsibility,constantlysurpasses,andbecomesanimportantcreatorandcontributorofhumangreenqualitylivingenvironmentwithlimitedresourcesandunlimitedwisdom.
1.Intermsofwastewatertreatment,theCompanyrespondedtotheconstructionof"fivewatertreatment",
"eliminatinginferiorV-typewater"and"zerodirectdischargeofsewage"inthewholeprovince.TheCompanyrenovatedtherainwaterandsewageoutletsinthefactoryarea,implementedtheseparationofrainwaterandsewage,andinstalledcut-offvalvesandvideomonitoringequipmentattheCompany's
rainwaterdischargeoutlets,andcollectedandtreatedtheearlyrainwater.Therearetwowastewatertreatmentstationsinthefactory.Thesewagetreatmentstationshavebeenequippedwithstandardizedsewageoutletsandsetupdischargeoutletsigns.Onlinemonitoringdevice,solenoidvalveflowmeterandcardswipingsewagesystemareinstalledatthedischargeoutlet,whichhasbeenconnectedwiththeenvironmentalprotectiondepartment.ThemonitoringindicatorsincludepH,COD,totalcopper,totalzinc,totalchromium,totalnickelandflow.Wastewatertreatment:TheCompanyhasentrustedathird-partyprofessionaltreatmentunitfortreatment.ThedischargeindicatorsoftheCompany'sinternalcontrolwastewaterarestricterthantheenvironmentaldischargestandard.ThefinaltreatedwastewaterisdischargedintothesewagecollectionpipenetworkoftheindustrialzoneandsenttoShengxinsewagetreatmentplantforretreatment.
2.Wastegastreatment:TheCompanyhasacidpickling,electroplatingwastegas,weldingdust,ultrasonic
cleaningandotherwastegas.Allkindsofwastegasdischargecylindersareequippedwithcorrespondingwastegastreatmentdevices.Theacidpicklingandelectroplatingwastegasabsorptionandtreatmenttowerisinstalledwithautomaticdosingsystem,andthewastegasisdischargedtoairaftertreatment.Atthesametime,inordertowintheblue-skydefenseactivity,theCompanycarriedoutlowNitrogenemissiontransformationoftheCompany'sgasboilersinaccordancewiththerequirementsofrelevantofficialdepartmentsin2019.In2021,thetransformationandupgradingofVOCstreatmentfacilitiesinindustrialenterprisesarebeingimplemented.Atthesametime,inordertoreducegenerationofVOCs,aqueouscleaningisusedtoreplaceorganicsolventcleaning.
3.Solidwasteandsoil(groundwater)treatment:allkindsofhazardouswasteoftheCompanyareentrustedtothethirdqualifiedpartyfordisposal,thegeneralsolidwastewithutilizationvalueisrecycled,thedomesticwasteisclearedandtransportedbytheenvironmentalsanitationstation,andtheconstructionwasteiscleanedandtransportedbytheconstructionunit.TheCompanyalsoteststhesoilandgroundwatereveryyearandpublishesthemonthecorrespondingwebsiteInMarch2020,SanhuaRefrigerationGroupcarriedoutaspecialsiteinvestigationonsoilandgroundwaterinXialiquanplantarea,andpreparedaninvestigationreport.Nopollutionwasfound.InJuly2020,theCompanybecameoneofthefirst"wastefreefactories"inShaoxingCity.
4.Noisecontrol:TheCompany'sexistingmainnoiseisworkshopproductionnoise,aircompressorroom,waste
gasandwastewatertreatmentequipmentnoise.Equipmentlayoutisreasonable,andtreesareplantedaroundtheworkshop.Noiseatfactorymeetsthestandard.
5.The"threewastes"pollutioncontrolfacilitiesoftheCompanyareinnormalandstableoperation,the
pollutantsaredischargedbasedonthestandard,andthereisnoenvironmentalpollutionevent.EnvironmentalImpactAssessment(EIA)ofconstructionprojectsandotheradministrativepermitsforenvironmentalprotection
1.Since2010,theCompanyhasinvestedintheconstructionofMeizhuSanhuaIndustrialEstateinXinchangCounty,andhasobtained25EIAreplies.Alltheprojectshavepassed.InAugust2020,theCompanyobtainedthenationalemissionpermit.
2.ZhejiangSanhuaRefrigerationGroupCo.,Ltd.hasinvestedinXialiquanofXinchangCountysince2013,and
hasobtained6EIAreplies.Alltheprojectshavepassed.EmergencyResponsePlan
1.TheCompanyre-writeEmergencyResponsePlaninApril2021,andfiledwithXinchangEnvironmentalProtectionBureauonJune10,2021(RecordNo.330624-2021-06-M).
2.Inordertomanageenvironmentalemergenciesandreducetheenvironmentalhazardscausedbysuddenenvironmentalpollutionaccidents,ZhejiangSanhuaRefrigerationGroupCo.,Ltd.re-compiledEmergencyResponsePlanforEnvironmentalPollutionAccidentsofZhejiangSanhuaRefrigerationGroupCo.,Ltd.(simplifiedversion)inOctober2018,whichwasfiledwithXinchangCountyEnvironmentalProtectionBureauonOctober29,2018(RecordNo.3306242018013).Environmentalself-monitoringprogramTheCompanyformulatedSelf-monitoringSchemeofZhejiangSanhuaIntelligentControlCo.,Ltd.accordingtotherequirementsofthesuperiorenvironmentalprotectiondepartment,combinedwiththeactualproductionsituationandtheactualneedsofenvironmentalmanagementoftheCompany.ThesewagestationoftheCompanyisequippedwithalaboratory,andthedetectionisconductedbyaspeciallyassignedperson.OnlineautomaticmonitoringequipmentsuchaspH,COD,TOC,totalcopper,totalzinc,totalchromium,totalnickel,flowrateetc.areinstalledattheCompany'stotalwastewaterdischargeoutlet,soastoachievethecombinationofautomaticmonitoringandmanualtesting.Forthepollutionfactorssuchassuspendedmatters,totalPhosphorus,AmmoniaNitrogen,totalIronandPetroleum,theCompanyentrustsathird-partytestingagencytocarryoutregularmonitoring.Themonitoringresultsarepublishedregularlyontheenterpriseself-monitoringinformationdisclosureplatformofZhejiangProvince.ZhejiangSanhuaRefrigerationGroupCo.,Ltd.hasgoodpollutantemissionmonitoringandmanagementability,andcantimelyinformtheenvironmentalprotectionadministrativedepartmentandthepublicofthemonitoringinformation.Accordingtotheactualproductionsituationandtheactualneedsofenvironmentalmanagement,theenvironmentalprotectionlaboratoryofwastewatertreatmentstationissetup,andthedetectioniscarriedoutbyspeciallyassignedpersondaily.OnlineautomaticmonitoringequipmentsuchaspH,COD,TOC,totalcopperandflowrateareinstalledatthetotalwastewaterdischargeoutletoftheCompany.Thecombinationofautomaticmonitoringandmanualtestingeffectivelyensuresthetimelinessandeffectivenessofmonitoring.Atthesametime,athird-partytestingCompanyisentrustedtocarryoutregularmonitoring.Themonitoringresultsarepublishedregularlyontheenterpriseself-monitoringinformationdisclosureplatformofZhejiangProvince.AdministrativepenaltiesforenvironmentalproblemsduringthereportingperiodNotapplicableOtherenvironmentalinformationthatshouldbedisclosedNotapplicableOtherenvironmentalinformationNotapplicable
II.SocialResponsibilityNO
SectionVISignificantEventsI.CompleteandIncompleteCommitmentsoftheCompanyandItsActualController,
Shareholders,Relatedparties,Acquirers,andOtherRelatedPartiesbytheEndoftheReportingPeriod
√Applicable□Notapplicable
Commitments
Giverofcommitments
NatureDetailsofcommitments
Dateofcommitments
Termofcommitments
Performance
Commitmentsofsharereform
ZhangYabo,controllingshareholderSanhuaHoldingGroupCo.,Ltd.
Othercommitment
WhenthenumberofsharessoldthroughlistingandtradinginShenzhenStockExchangereaches1%ofthetotalnumberofsharesoftheCompany,itshallmakeanannouncementwithintwoworkingdaysfromthedateoftheoccurrenceofthefact.
November21,2005
Longterm
Strictperformance
Commitmentsmadeduringassetrestructuring
ZhangDaocai,controllingshareholderSanhuaHoldingGroupCo.,Ltd.
Commitmentonhorizontalcompetition,relatedpartytransactionsandcapitaloccupation
ThecommitmentmadeatthetimeofIPO,itshallnotengageinthesameproduction,operationorbusinessastheCompanyinthefuture.InordertoavoidbusinesscompetitionwiththeCompanyandclarifythenon-competitionobligations,SanhuaHoldingGroup,onbehalfofitselfanditssubsidiarieswithmorethan50%equity,makesacommitmenttoSanhuaintelligentcontrolstoavoidpossiblehorizontalcompetition.
June7,2005Longterm
Strictperformance
ZhangDaocai,controllingshareholderSanhua
Commitmentonhorizo
ZhangDaocaiandSanhuaholdinggroup,thecontrollingshareholderoftheCompany,promisethattherewillnotbe
January5,2009
Longterm
Strictperformance
HoldingGroupCo.,Ltd.
ntalcompetition,relatedpartytransactionsandcapitaloccupation
anycompetitionwithSanhuaintelligentcontrolsinthebusinessscopebeingoralreadycarriedoutinthefuture.
ZhangDaocai,controllingshareholderSanhuaHoldingGroupCo.,Ltd.
Commitmentonhorizontalcompetition,relatedpartytransactionsandcapitaloccupation
SanhuaHoldingGrouppromises:afterthecompletionofthistransaction,SanhuaHoldingGroupandSanhuaintelligentcontrolswillsignanagreementaccordingtolaw,performlegalprocedures,fulfilltheobligationofinformationdisclosureandhandlesignificantmattersforapprovalinaccordancewithrelevantlaws,regulations,articlesofassociationofSanhuaintelligentcontrols.Intheprocessofimplementationofrelatedpartytransactions,wewillfollowtheprincipleoflegalityandreasonableness,ensurethefairnessofpricesandprocedures,andmakecertainthatthelegitimateinterestsofSanhuaintelligentcontrolsandothershareholderswillnotbedamagedthroughrelatedpartytransactions.
January5,2009
Longterm
Strictperformance
ZhangDaocai,ZhangYabo,ZhangShaobo,controllingshareholderSanhuaHolding
Commitmentonhorizontalcompetition,related
InordertoavoidhorizontalcompetitionwithSanhuaintelligentcontrols,ZhangDaocai,ZhangYabo,ZhangShaobo,SanhuaHoldingGroupthecontrollingshareholderoftheCompany,andSanhuaLvnengIndustry,thetrading
July24,2015Longterm
Strictperformance
GroupCo.,Ltd.,ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd.
partytransactionsandcapitaloccupation
partnermadethefollowingcommitments:
1.I(ortheCompany)willnot
directlyorindirectlyengageinorparticipateinthebusinessthatconstitutespotentialdirectorindirectcompetitionwithSanhuaIntelligentControlsanditssubordinateenterprises;guaranteethatlegalandeffectivemeasuresshallbetakentourgeotherenterprisescontrolledbyme(ortheCompany)nottoengageinorparticipateinanybusinesscompetingwithSanhuaIntelligentControlsanditssubordinateenterprises.
2.IfSanhuaIntelligentControls
furtherexpandsitsbusinessscope,I(ortheCompany)andothercontrolledenterpriseswillnotcompetewithSanhuaIntelligentControls'expandedbusiness;ifitispossibletocompetewithSanhuaIntelligentControls'businessafterexpansion,I(ortheCompany)andothercontrolledenterpriseswillwithdrawfromSanhuaIntelligentControlsinthefollowingwaysofcompetition:
A.StopthebusinessesthatcompeteormaycompetewithSanhuaIntelligentControls;B.InjectthecompetitivebusinessintoSanhuaIntelligentControls;C.Transferthecompetitivebusinesstoanunrelatedthirdparty.
3.IfI(ortheCompany)and
otherenterprisescontrolledbyme(ortheCompany)haveanybusinessopportunitiesto
engageinandparticipateinanyactivitiesthatmaycompetewithSanhuaIntelligentControls'businessoperation,theyshallimmediatelyinformSanhuaIntelligentControlsoftheabovebusinessopportunities.IfSanhuaIntelligentControlsmakesanaffirmativereplytotakeadvantageofthebusinessopportunitywithinareasonableperiodspecifiedinthenotice,itshalldoitsbesttogivethebusinessopportunitytoSanhuaIntelligentControls.
4.Incaseofbreachofthe
abovecommitment,I(ortheCompany)iswillingtobearallresponsibilitiesarisingtherefromandfullycompensatealldirectorindirectlossescausedtoSanhuaIntelligentControls.
ZhangDaocai,ZhangYabo,ZhangShaobo,controllingshareholderSanhuaHoldingGroupCo.,Ltd.,ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd.
Commitmentonhorizontalcompetition,relatedpartytransactionsandcapitaloccupation
InordertostandardizetherelatedpartytransactionswithSanhuaIntelligentControls,ZhangDaocai,ZhangYabo,ZhangShaobo,SanhuaHoldingGroupthecontrollingshareholderoftheCompanyandSanhuaLvnengIndustrialthetradingpartnermadethefollowingcommitments:
1.I(ortheCompany)andthe
controlledenterpriseswillreducetherelatedpartytransactionswithSanhuaintelligentcontrolsasfaraspossible,andwillnotusetheirownstatusasshareholdersofSanhuaintelligentcontrolstoseekforsuperiorrightsintermsofbusinesscooperationand
July24,2015Longterm
Strictperformance
otheraspectscomparedwithotherthirdparties;
2.I(ortheCompany)willnot
takeadvantageoftherighttoenterintoatransactionwithSanhuaintellectualcontrolsusingthepositionasashareholder.
3.Iftherearenecessaryand
unavoidablerelatedpartytransactions,I(ortheCompany)andthecontrolledenterpriseswillsignagreementswithSanhuaintelligentcontrolsinaccordancewiththeprinciplesoffairness,followlegalprocedures,andperformtheinformationdisclosureobligationsinaccordancewiththerequirementsofrelevantlaws,regulatorydocumentsandthearticlesofassociation.Itshallalsoperformrelevantinternaldecision-makingandapprovalprocedurestoensurethatitwillnotconducttransactionswithSanhuaintelligentcontrolsontermsthatareobviouslyunfaircomparedwiththemarketprice,andwillnotusesuchtransactionstoengageinanybehaviorthatdamagesthelegitimaterightsandinterestsofSanhuaintelligentcontrolsandothershareholders.ZhangDaocai,ZhangYabo,ZhangShaobo,controllingshareholderSanhuaHolding
OtherCommitment
ZhangDaocai,ZhangYabo,ZhangShaoboandSanhuaholdingGroup,thecontrollingshareholderoftheCompany,madethefollowingcommitments:afterthecompletionofthetransaction,Sanhuaintelligentcontrolswill
July24,2015Longterm
Strictperformance
GroupCo.,Ltd.
continuetoimprovethecorporategovernancestructureandindependentoperationoftheCompanymanagementsysteminaccordancewiththerequirementsofrelevantlawsandregulationsandthearticlesofAssociation,andcontinuetomaintaintheindependenceofSanhuaintelligentcontrolsinbusiness,assets,finance,institutions,personnel,etc.toprotecttheinterestsofallshareholders.
ZhangDaocai,ZhangYabo,ZhangShaobo,controllingshareholderSanhuaHoldingGroupCo.,Ltd.,ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd.
Commitmentonhorizontalcompetition,relatedpartytransactionsandcapitaloccupation
1.I(ortheCompany)andthe
controlledenterpriseswillreducetherelatedpartytransactionswithSanhuaintelligentcontrolsasfaraspossible,andwillnotusethepositionasashareholderofSanhuaintellectualcontrolstoseekthesuperiorrightsforbusinesscooperationwithSanhuaintelligentcontrolscomparedwithotherthirdparties;
2.I(ortheCompany)willnot
usemypositionasashareholderofSanhuaintellectualcontrolstoseekforthepriorityrighttocooperatewithSanhuaintellectualcontrols;
3.Iftherearenecessaryand
unavoidablerelatedpartytransactions,I(ortheCompany)andthecontrolledenterpriseswillsignagreementswithSanhuaintelligentcontrolsinaccordancewiththeprinciplesoffairness,followlegalprocedures,andperformtheinformationdisclosure
September18,2017
Longterm
Strictperformance
obligationsinaccordancewiththerequirementsofrelevantlaws,regulatorydocumentsandthearticlesofassociation.Itshallalsoperformrelevantinternaldecision-makingandapprovalprocedurestoensurethatitwillnotconducttransactionswithSanhuaintelligentcontrolsontermsthatareobviouslyunfaircomparedwiththemarketprice,andwillnotusesuchtransactionstoengageinanybehaviorthatdamagesthelegitimaterightsandinterestsofSanhuaintelligentcontrolsandothershareholders.
ZhangDaocai,ZhangYabo,ZhangShaobo,controllingshareholderSanhuaHoldingGroupCo.,Ltd.,ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd.
Commitmentonhorizontalcompetition,relatedpartytransactionsandcapitaloccupation
1.I(ortheCompany)willnot
directlyorindirectlyengageinorparticipateinanybusinessthatmayconstitutepotentialdirectorindirectcompetitionwithSanhuaintelligentcontrolsanditssubordinateenterprises;guaranteedthatlegalandeffectivemeasureswillbetakentourgeotherenterprisescontrolledbyme(ortheCompany)nottoengageinorparticipateinanybusinessthatiscompetitivewithSanhuaintelligentcontrolsanditssubordinateenterprisesbusiness.
2.IfSanhuaintelligentcontrols
furtherexpandsitsbusinessscope,I(ortheCompany)andotherenterprisescontrolledbyme(ortheCompany)willnotcompetewithSanhuaintelligentcontrols'expandedbusiness;ifitispossibletocompetewithSanhuaintelligentcontrols'
September18,2017
Longterm
Strictperformance
businessafterexpansion,I(ortheCompany)andotherenterprisescontrolledbyme(ortheCompany)willwithdrawfromSanhuaintelligentcontrolsinthefollowingwaysofcompetition:A.stopthebusinessesthatcompeteormaycompetewithSanhuaintelligentcontrols;B.injectthecompetitivebusinessintoSanhuaintelligentcontrols;C.transferthecompetitivebusinesstoanunrelatedthirdparty.
3.IfI(ortheCompany)and
otherenterprisescontrolledbyme(ortheCompany)haveanybusinessopportunitiestoengageinandparticipateinanyactivitiesthatmaycompetewithSanhuaintelligentcontrols'businessoperation,theyshallimmediatelyinformSanhuaintelligentcontrolsoftheabovebusinessopportunities.IfSanhuaintelligentcontrolsmakesanaffirmativereplytotakeadvantageofthebusinessopportunitywithinareasonableperiodspecifiedinthenotice,itshalldoitsbesttogivethebusinessopportunitytoSanhuaintelligentcontrols.
4.Incaseofbreachofthe
abovecommitment,I(ortheCompany)iswillingtobearallresponsibilitiesarisingtherefromandfullycompensatealldirectorindirectlossescausedtoSanhuaintelligentcontrols.ZhangDaocai,ZhangYabo,
Othercomm
Afterthecompletionofthetransaction,thelistedCompany
September18,2017
Longterm
Strictperformance
ZhangShaobo,controllingshareholderSanhuaHoldingGroupCo.,Ltd.,ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd.
itmentwillcontinuetoimprovethe
corporategovernancestructureandindependentoperationoftheCompanymanagementsysteminaccordancewiththerequirementsofrelevantlawsandregulationsandthearticlesofassociation,continuetomaintaintheindependenceofthelistedCompanyinbusiness,assets,finance,institutions,personnelandotheraspects,andeffectivelyprotecttheinterestsofallshareholders.Arethecommitmentsfulfilledontime
Yes
II.TheCompany’sfundsusedbythecontrollingshareholderoritsrelatedpartiesfor
non-operatingpurposes.
□Applicable√Notapplicable
Nosuchcaseduringthereportingperiod.
III.Illegalprovisionofguaranteesforexternalparties
□Applicable√Notapplicable
Nosuchcaseduringthereportingperiod.
IV.EngagementanddisengagementoftheCPAfirmWhetherthisfinancialreportwasaudited
□Yes√No
Thisreportwasnotaudited.V.ExplanationGivenbytheBoardofDirectorsandSupervisoryCommitteeRegardingthe
“Non-standardAuditor’sReport”IssuedbytheCPAFirmfortheReportingPeriod
□Applicable√Notapplicable
VI.ExplanationGivenbytheBoardofDirectorsRegardingthe“Non-standardAuditor’s
Report”IssuedbytheCPAFirmforthePriorYear
□Applicable√Notapplicable
VII.BankruptcyandRestructuring
□Applicable√Notapplicable
Nosuchcaseduringthereportingperiod.
VIII.MaterialLitigationandArbitrationMaterialLitigationandArbitration
□Applicable√Notapplicable
Nosuchcaseduringthereportingperiod.Otherlitigations
□Applicable√Notapplicable
IX.PunishmentsandRectifications
□Applicable√Notapplicable
Nosuchcaseduringthereportingperiod.
X.IntegrityoftheCompanyandItsControllingShareholdersandActualControllers
□Applicable√Notapplicable
XI.SignificantRelated-partyTransaction
1.Significantrelated-partytransactionsarisingfromroutineoperation
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
2.Related-partytransactionsregardingpurchaseanddisposalofassetsorequity
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
3.Significantrelated-partytransactionsarisingfromjointinvestmentsonexternalparties
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
4.Relatedcreditanddebttransactions
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
5.TransactionswithrelatedfinancialcompaniesandfinancialcompaniescontrolledbytheCompany
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
6.Othersignificantrelatedpartytransactions
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
XII.SignificantContractsandTheirExecution
1.Mattersontrusteeship,contracting,andleasing
(1)Trusteeship
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
(2)Contracting
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
(3)Leasing
√Applicable□Notapplicable
IllustrationofleaseAwecoPolskasAppliancesp.z.o.osp.k,awholly-ownedsubsidiaryoftheCompany,acquired2buildingsthroughcapitallease.Itemswithprofitandlossexceeding10%ofthetotalprofitoftheCompanyinthereportperiod
□Applicable√Notapplicable
Duringthereportingperiod,thereisnoleasingprojectwithprofitandlossofmorethan10%ofthetotalprofitoftheCompany.
2.Significantguarantees
√Applicable□Notapplicable
(1)Guarantees
Unit:RMBin10thousandExternalGuaranteesfromtheCompanyanditsSubsidiaries(ExcludingGuaranteestotheSubsidiaries)
Guaranteed
Party
Disclosure
dateofannouncementoftheguaranteecap
Guarantee
Cap
ActualOccurrence
Date
ActualGuaranteeAmount
TypeofGuarantee
Collateral
(ifany)
Counterguarant
ee(ifany)
TermofGuarantee
DueorNot
GuaranteeforRelatedPartiesorNotCompany'sGuaranteestoSubsidiaries
GuaranteedParty
Disclosuredateofannouncementoftheguaranteecap
GuaranteeCap
ActualOccurrenceDate
ActualGuaranteeAmount
TypeofGuarantee
Collateral(ifany)
Counterguarantee(ifany)
TermofGuarantee
DueorNot
GuaranteeforRelatedPartiesorNotSANHUAINTERNATIONALSINGAPOREPTE.LTD.
April3,2019
132,000
July5,2019
11,529.3
Jointliabilityguarantee
2019.07.05-2022.06.20
NoYes
SANHUAINTERNATIONAL,INC.
April3,2019
30,000December9,2019
20,026.31
Jointliabilityguarantee
2019.12.09-2022.12.09
NoYesSANHUAINTERNATIONAL,INC.
April29,2020
50,000
June24,2020
9,690.15
Jointliabilityguarantee
2020.06.24-2021.06.23
YesYesSANHUAINTERNATIONALSINGAPOREPTE.LTD.
April29,2020
150,000
September14,2020
7,686.2
Jointliabilityguarantee
2020.09.14-2021.09.13
NoYes
SANHUAINTERNATIONALSINGAPO
April29,2020
150,000
November2,2020
7,686.2
Jointliabilityguarantee
2020.11.02-2021.11.01
NoYes
REPTE.LTD.SANHUAINTERNATIONALSINGAPOREPTE.LTD.
April29,2020
150,000
June12,2020
7,500
Jointliabilityguarantee
2020.06.12-2022.12.25
NoYes
SANHUAINTERNATIONALSINGAPOREPTE.LTD.
April3,2019
132,000
February10,2020
9,992.06
Jointliabilityguarantee
2020.02.10-2021.02.09
YesYes
SANHUAINTERNATIONAL,INC.
March27,2021
50,000June23,2021
9,690.15
Jointliabilityguarantee
2021.06.23-2022.06.16
NoYesSANHUAINTERNATIONALSINGAPOREPTE.LTD.
March27,2021
180,000
February10,2021
9,992.06
Jointliabilityguarantee
2021.02.10-2021.08.06
NoYes
SANHUAINTERNATIONALSINGAPOREPTE.LTD.
March27,2021
180,000
June8,2021
1,537.24
Jointliabilityguarantee
2021.06.08-2021.12.08
NoYes
TotalAmountofGuaranteestoSubsidiariesApprovedduringtheReportingPeriod(B1)
280,000
TotalAmountofGuaranteestoSubsidiariesActuallyOccurredduringtheReportingPeriod(B2)
21,219.45
TotalAmountofGuaranteestoSubsidiariesApprovedbytheEndoftheReportingPeriod(B3)
334,428.01
TotalBalanceofGuaranteesActuallyPaidtoSubsidiariesattheEndoftheReportingPeriod(B4)
75,647.46
Subsidiaries'GuaranteestoSubsidiariesGuaranteedDisclosureGuaranteeActualActualTypeofCollateralCounterTermofDueorGuarante
Partydateof
announcem
entoftheguarantee
cap
Cap
Occurrence
Date
Guarantee
Amount
Guarantee(ifany)guarant
ee(ifany)
GuaranteeNotefor
RelatedPartiesor
NotThetotalamountoftheCompany'sguarantees(thetotaloftheabovethreeitems)TotalAmountofGuaranteesApprovedduringtheReportingPeriod(A1+B1+C1)
280,000
TotalAmountofGuaranteesActuallyOccurredduringtheReportingPeriod(A2+B2+C2)
21,219.45
TotalAmountofGuaranteesApprovedbytheEndoftheReportingPeriod(A3+B3+C3)
334,428.01
TotalBalanceofGuaranteesActuallyPaidattheEndoftheReportingPeriod(A4+B4+C4)
75,647.46
TotalAmountofActualGuarantees(A4+B4+C4)asaPercentageoftheCompany'sNetAssets
7.24%
Ofwhich:
BalanceofDebtGuaranteesDirectlyorIndirectlyOfferedtoGuaranteedObjectswithAsset-liabilityRatioExceeding70%(E)
29,716.46TotalAmountoftheAboveThreeGuarantees(D+E+F)
29,716.46
3.Entrustedwealthmanagement
√Applicable□Notapplicable
Unit:RMBin10thousandSpecifictypesCapitalsourceAmount
Balancebeforematurity
Overdueuncollectedamount
AccruedimpairmentamountofoverdueunrecoveredfinancialproductBankfinancialproducts
TheCompany’sownedfunds,raisedfunds
75,048.518,839.78Total75,048.518,839.78Specificsituationofhigh-riskentrustedfinancialmanagementwithlargesingleamountorlowsecurity,poorliquidityandwithoutguaranteeofprincipal
√Applicable□Notapplicable
Unit:RMBin10thousand
Nameof
trustee
Type
oftrustee
Product
type
Amoun
t
Capitalsource
Startdate
Terminationdate
Capitalinvestm
ent
Determi
nationofreturn
Referenceannualizedrateofreturn
Expectedreturn(ifany)
Actualprofitandlossinthereportingperiod
Actualrecoveryofprofitandlossinthereportingperiod
Amountofprovisionforimpairment(ifany)
Throughlegalprocedu
resor
not
Futureentrustedfinancialmanagementplanornot
Eventoverviewandrelevantindex(ifany)IndustrialandCommercialBankofChinaXinchangsubbranch
Bank
"Tianlibao"Networthfinancialproductforcorporate
20,000
Self-funds
December30,2020
January4,2021
Bankfinancialproducts
Floatingincomewithoutguaranteeofprincipal
2.62%7.197.19Yes-
IndustrialandCommercialBankofChinaXinchangsubbranch
Bank
"E-Lingtong"networthfinancialproductsforcorporatewithoutfixedterm
5,000
Self-funds
December31,2020
January4,2021
Bankfinancialproducts
Floatingincomewithoutguaranteeofprincipal
3.03%1.661.66Yes-
BankofBankBankof10,000Self-funFebruarMay10,BankFloating
3.50%80.5180.51Yes-
ZhejiangSanhua
CommunicationsCo.,Ltd.ShaoxingXinchangsubbranch
Communi
cationsYuntongwealthfixstructureddepositfor89days(linkedexchangeratebullish)
dsy10,
2021
2021financia
lproduct
s
incomewithguaranteeofprincipa
l
BNPParibasShanghaiBranch
Bank
Structureddepositslinkedwithforeignexchange
rateofEuroandUSdollar
10,000
Self-funds
June29,2021
December13,2021
Bankfinancialproducts
Floatingincome
withguaranteeofprincipal
3.80%0
Intelligent
GuangzhouDevelopmentBankHangzhouXiaoshansubbranch
Bank
XinjiaxinNo.16structureddeposit
9,500
Self-funds
October22,2020
January22,2021
Bankfinancialproducts
Floatingincomewithguaranteeofprincipal
3.30%73.74
73.74
ZhejiangSanhua
HengSengBankHangzhouBranch
Bank
Hengliyin
g
5,000
Self-funds
October23,2020
January
22,2021
Bankfinancia
lproduct
s
Floatingincome
withguaranteeofprincipa
l
3.35%39.94
Intelligent
39.94
ChinaCITICBankHangzhouBranch
Bank
Structured
deposit
5,000
Self-fun
ds
Decemb
er31,2020
Februar
y1,2021
Bankfinancia
lproduct
s
Fixincome
withguarant
eeofprincipa
l
3.55%15.14
39.94
15.14
Total
64,500
【
】
------------0218.18
15.14
--
Note:[1]TheabovementionedarethedetailsoftheCompany'ssinglesignificantfinancialmanagement(singleamountis
--more
Entrustedfinancialmanagementisexpectedtobeunabletorecovertheprincipalorthereareothersituationsthatmaylead
moreto
□Applicable√Notapplicable
4.Significantcontractsfordailyoperation
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
5.Othersignificantcontracts
□Applicable√Notapplicable
Nosuchcaseinthereportingperiod.
XIII.Othersignificantevents
√Applicable□Notapplicable
TheCompanycompletedtheissuanceandlistingofRMB3billionconvertiblebonds.AccordingtoChinaSecuritiesRegulatoryCommissionReplyonApprovingPublicOfferingofConvertibleCorporateBondsbyZhejiangSanhuaIntelligentControlsCo.,Ltd(ZJXK[2021]NO.168),theCompanyissued30millionconvertiblecorporatebondswithafacevalueofRMB100onJune1,2021.ItwaslistedandtradedonShenzhenStockExchangeonJune30,2021(thebondisreferredtoas"Sanhuaconvertiblebond"andthebondcodeis"127036").SeeSectionIX"Bonds"ofthe2021Semi-Annualreportformoredetails.XIV.SignificanteventsoftheCompany’ssubsidiaries
□Applicable√Notapplicable
SectionVIIChangesinSharesandInformationaboutShareholdersI.ChangesinShares
1.Changesinshares
Unit:ShareBeforethechangeChangesintheperiod(+,-)AfterthechangeSharesRatio
NewSharesIssued
Bonusshare
Sharetransferred
from
capital
reserve
OthersSub-totalSharesRatio
1.Sharessubjectto
conditionalrestriction(s)
61,268,30
1.71%-4,426,340-4,426,340
56,841,96
1.58%
3)Otherdomesticshares
61,268,30
1.71%-4,426,340-4,426,340
56,841,96
1.58%
Ofwhich:SharesheldbydomesticlegalpersonSharesheldbydomestic
naturalperson
61,268,30
1.71%-4,426,340-4,426,340
56,841,96
1.58%
2.Shareswithout
restriction
3,530,333,
98.29%4,426,3404,426,340
3,534,759,503
98.42%
1)RMBordinaryshares
3,530,333,
98.29%4,426,3404,426,340
3,534,759,503
98.42%
3.Total
3,591,601,
100.00%00
3,591,601,468
100.00%
Reasonforthechangesinsharecapital
√Applicable□Notapplicable
1.Atthebeginningofeachyear,thenumberoflockedsharesheldbyseniorexecutivesoftheCompanyshallberecalculatedaccordingto75%ofthetotalsharesheldbyseniorexecutives.
2.OnJune18,2021,thefirstvestingperiodofthe2020restrictedstockincentiveplanmatured,and4,596,150restrictedsharesof883incentiveobjectswhomeettheunlockingconditionswereunlocked.Accordingtotherelevantprovisionsofsharesmanagementforseniorexecutives,4,426,340shareswereactuallyunlockedandlistedforcirculation.Approvalforchangesinsharecapital
√Applicable□Notapplicable
OnJune8,2021,the18thinterimmeetingofthesixthboardofdirectorsandthe16thinterimmeetingofthesixthboardofsupervisorsdeliberatedandapprovedTheProposalontheAchievementofUnlockingConditionsoftheFirstVestingPeriodforthe2020StockIncentivePlan.Therewere883incentiveobjectswhomeettheconditionsforunlocking,andthenumberofunlockedshareswas4,596,150Transferofshares
□Applicable√Notapplicable
Informationabouttheimplementationofsharerepurchase
□Applicable√Notapplicable
Theprogressonreductionofre-purchasesharesbymeansofcentralizedbidding
□Applicable√Notapplicable
Effectsofchangesinsharecapitalonthebasicearningspershare("EPS"),dilutedEPS,netassetspershareattributabletocommonshareholdersoftheCompany,andotherfinancialindexesoverthelastyearandlastperiod
√Applicable□Notapplicable
Pleaserefertothefinancialreportfordetails.OthercontentsthattheCompanyconsidersnecessaryorrequiredbythesecuritiesregulatoryauthoritiestodisclose
□Applicable√Notapplicable
2.Changesinrestrictedshares
√Applicable□Notapplicable
Unit:ShareNameofshareholder
Openingbalanceofrestrictedshares
Vestedincurrentperiod
Increasedincurrentperiod
Closingbalanceofrestrictedshares
Noteforrestrictedshares
Dateofunlocking
ZhangYabo39,023,4000039,023,400
Restrictedsharesforseniorexecutives
Accordingtotherelevantprovisionsofsharesmanagementforseniorexecutives
WangDayong197,60039,00033,962192,562
OnJune18,2021,39,000restrictedshareswereunlocked+restrictedsharesforseniorexecutives
Accordingtotherelevantprovisionsofsharesmanagementforseniorexecutives+equityincentiveNiXiaoming197,60039,00033,962192,562
OnJune18,2021,39,000
Accordingtotherelevant
restrictedshareswereunlocked+restrictedsharesforseniorexecutives
provisionsofsharesmanagementforseniorexecutives+equityincentive
ChenYuzhong197,60039,00033,962192,562
OnJune18,2021,39,000restrictedshareswereunlocked+restrictedsharesforseniorexecutives
Accordingtotherelevantprovisionsofsharesmanagementforseniorexecutives+equityincentive
HuKaicheng197,60039,00033,962192,562
OnJune18,2021,39,000restrictedshareswereunlocked+restrictedsharesforseniorexecutives
Accordingtotherelevantprovisionsofsharesmanagementforseniorexecutives+equityincentive
YuYingkui221,08039,00033,962216,042
OnJune18,2021,39,000restrictedshareswereunlocked+restrictedsharesforseniorexecutives
Accordingtotherelevantprovisionsofsharesmanagementforseniorexecutives+equityincentive
ChenXiaoming8,325008,325
Restrictedsharesforseniorexecutives
AccordingtotherelevantprovisionsofsharesmanagementforseniorexecutivesOtherincentiveobjects
21,225,1004,401,15016,823,950
OnJune18,2021,4,401,150restrictedshareswereunlocked+equityincentive
AccordingtotherelevantprovisionsofsharesmanagementforequityincentiveTotal61,268,3054,596,150169,81056,841,965----II.IssuanceandListingofSecurities
□Applicable√Notapplicable
III.TotalNumberofShareholdersandTheirShareholdings
Unit:ShareTotalNumberofCommonShareholdersattheEndoftheReportingPeriod
77,721
TotalNumberofPreferredShareholders(IfAny)(RefertoNote8)WhoseVotingRightsHaveBeenRecoveredattheEndoftheReportingPeriod
Particularsaboutsharesheldbyshareholderswithashareholdingpercentageover5%ortheTop10ofthem
Nameofshareholder
Natureofshareholder
Share-holdingpercentage(%)
Totalsharesheldattheendofthereportingperiod
Increase/decreaseduringthereportingperiod
Thenumberofcommonsharesheldwithtradingrestrictions
Thenumberofsharesheldwithouttradingrestrictions
Pledgedorfrozen
StatusAmount
SanhuaHoldingGroupCo.,Ltd.
Domesticnon-state-ownedcorporation
29.44%
1,057,245,749
-12,291,8
1,057,245,749Pledged228,128,169ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd
Domesticnon-state-ownedcorporation
20.68%
742,747,954
742,747,9
HongKongCentralClearingLimited
Overseascorporation
16.50%
592,539,322307,366,2
592,539,3
ZhangYabo
DomesticIndividual
1.45%
52,031,
39,023,
13,007,80
ChinaConstructionBankCorporation-Huaxiaenergyinnovationstock
Others1.01%
36,405,
36,405,56
36,405,56
securitiesinvestmentfundBankofChinaLimited-Efundstrategicemergingindustryequitysecuritiesinvestmentfund
Others0.92%
33,182,
33,182,09
33,182,09
AbuDhabiInvestmentAuthority
Overseascorporation
0.75%
26,879,
26,879,72
26,879,72
AgriculturalBankofChinaLimited–Guotaiintelligentautomobilestocksecuritiesinvestmentfund
Others0.67%
24,221,
24,221,78
24,221,78
NationalSocialSecurityFund-111
Others0.66%
23,692,
34,765
23,692,94
ChinaMerchantsBankCo.,Ltd.-Efundinnovativegrowthhybridsecuritiesinvestmentfund
Others0.65%
23,290,
-2,235,77
23,290,91
InformationaboutStrategicNo
Investors’orGeneralLegalPersons’BecomingTopTenCommonShareholdersforPlacementofNewShares(IfAny)(RefertoNote3)ExplanationonAssociatedRelationshiporConcertedActionsamongtheAbove-MentionedShareholders
Amongtheaboveshareholders,SanhuaHoldingGroupCo.,Ltd.,ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd.andZhangYaboarethepersonsactinginconcert.TheCompanydoesnotknowwhetherthereisanyrelatedrelationshipbetweenothershareholders,orwhethertheybelongtothepersonsactinginconcertstipulatedintheAdministrativeMeasuresfortheAcquisitionofListedCompanies.ParticularsaboutSharesHeldbyTopTenCommonShareholdersHoldingSharesThatAreNotSubjecttoTradingRestrictionsNameofShareholder
NumberofCommonSharesHeldwithoutRestrictionsattheEndoftheReportingPeriod
TypeofsharesTypeAmountSanhuaHoldingGroupCo.,Ltd.1,057,245,749
RMBcommonstock
1,057,245,749ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd
742,747,954
RMBcommonstock
742,747,954HongKongCentralClearingLimited
592,539,322
RMBcommonstock
592,539,322ChinaConstructionBankCorporation-Huaxiaenergyinnovationstocksecuritiesinvestmentfund
36,405,561
RMBcommonstock
36,405,561BankofChinaLimited-Efundstrategicemergingindustryequitysecuritiesinvestmentfund
33,182,090
RMBcommonstock
33,182,090AbuDhabiInvestmentAuthority26,879,720
RMBcommonstock
26,879,720AgriculturalBankofChinaLimited–Guotaiintelligentautomobilestocksecuritiesinvestmentfund
24,221,783
RMBcommonstock
24,221,783NationalSocialSecurityFund-111
23,692,945
RMBcommonstock
23,692,945ChinaMerchantsBankCo.,Ltd.-Efundinnovativegrowthhybridsecuritiesinvestmentfund
23,290,913
RMBcommonstock
23,290,913ChinaConstructionBankCorporation-BOCOMSchroderalphacorehybridsecuritiesinvestmentfund
22,714,690
RMBcommonstock
22,714,690
ExplanationofAssociatedRelationshiporConcertedActionsamongTopTenCommonShareholderswithoutTradingRestrictions,andamongTopTenCommonShareholderswithoutTradingRestrictionsandTopTenCommonShareholders
Amongtheaboveshareholders,SanhuaHoldingGroupCo.,Ltd.,ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd.arethepersonsactinginconcert.TheCompanydoesnotknowwhetherthereisanyrelatedrelationshipbetweenothershareholders,orwhethertheybelongtothepersonsactinginconcertstipulatedintheAdministrativeMeasuresfortheAcquisitionofListedCompanies.ExplanationofTopTenCommonShareholders’ParticipationinSecuritiesMarginTrading(IfAny)(RefertoNote4)
NoAnyoftheCompany’stop10commonshareholdersortop10non-restrictedcommonshareholdersconductedanyagreedbuy-backinthereportingperiod?
□Applicable√Notapplicable
Nosuchcasesduringthecurrentreportingperiod.
IV.Shareholdingchangesofdirectors,supervisors,seniormanagementpersonnel
□Applicable√Notapplicable
V.ChangesinControllingShareholdersorActualControllers
Changeofthecontrollingshareholderduringthecurrentreportingperiod
□Applicable√Notapplicable
Nosuchcasesinthereportingperiod.Changeoftheactualcontrollerduringthereportingperiod
□Applicable√Notapplicable
Nosuchcasesinthecurrentreportingperiod.
SectionVIIIInformationofPreferredShares
□Applicable√Notapplicable
NoexistedpreferredsharesfortheCompanyduringthecurrentreportingperiod.
SectionIXBonds
√Applicable□Notapplicable
I.Enterprisebond(hereinafterreferredtoasthebondissuedbydomesticstate-owned
entity)
□Applicable√Notapplicable
II.Corporatebond
□Applicable√Notapplicable
III.Debtfinancinginstrumentsofnon-financialenterprises
□Applicable√Notapplicable
IV.Convertiblebond
√Applicable□Notapplicable
1.PreviousAdjustmentsofStockConversionPrice
□Applicable√Notapplicable
2.ShareConversions(Accumulative)
□Applicable√Notapplicable
3.Top10HoldersoftheConvertibleBond
Unit:share
Nameofconvertiblebondholder
Natureofconvertiblebondholders
Numberofconvertiblebondsheldattheendofthereportingperiod(share)
Amountofconvertiblebondsheldattheendofthereportingperiod(yuan)
Proportionofconvertiblebondsheldattheendofthereportingperiod1SanhuaHoldingGroupCo.,Ltd.
Domesticnon-state-ownedcorporation
8,854,432885,443,200.0029.51%
ZhejiangSanhuaLvnengIndustrialGroupCo.,Ltd
Domesticnon-state-ownedcorporation
6,220,514622,051,400.0020.74%3ZhangYabo
DomesticIndividual
435,76043,576,000.001.45%
BankofChinaLimited-EfundOthers263,03526,303,500.000.88%
strategicemergingindustryequitysecuritiesinvestmentfund
ChinaConstructionBankCorporation-Huaxiaenergyinnovationstocksecuritiesinvestmentfund
Others219,10121,910,100.000.73%
ChinaMerchantsBankCo.,Ltd.-Efundinnovativegrowthhybridsecuritiesinvestmentfund
Others213,78621,378,600.000.71%
ChinaConstructionBankCorporation-BOCOMSchroderalphacorehybridsecuritiesinvestmentfund
Others211,15721,115,700.000.70%
AgriculturalBankofChinaLimited–Guotaiintelligentautomobilestocksecuritiesinvestmentfund
Others206,81720,681,700.000.69%
9BohaiSecuritiesCo.,Ltd
Domesticstate-ownedcorporation
200,31520,031,500.000.67%
IndustrialandCommercialBankofChinaLimited-BOCOMSchroeder'sadvantageousindustriesflexiblyallocatehybridsecuritiesinvestmentfunds
Others193,31719,331,700.000.64%
4.TheProfitability,AssetandCreditStatusoftheGuarantorHaveChangedSignificantly
□Applicable√Notapplicable
V.Thelosswithinthescopeofconsolidatedstatementsinthereportingperiodexceeded
10%ofthenetassetsattheendofthepreviousyear
□Applicable√Notapplicable
VI.MainaccountingdataandfinancialindicatorsoftheCompanyinrecenttwoyearsbythe
endofthereportingperiod
Unit:RMBin10thousandItem
Attheendofthereporting
period
AttheendoflastyearYoYChange(%)
Currentratio228.79%245.04%-16.25%Assetliabilityratio49.81%40.39%9.42%Quickratio183.95%196.22%-12.27%
CurrentReportingPeriod
CorrespondingPeriodofLast
Year
YoYChange(%)Netprofitafterdeductingnon-recurringprofitandloss
71,977.1758,219.1223.63%EBITDAtotaldebtratio18.39%27.11%-8.72%Timeinterestearnedratio26.0523.729.82%Cashinterestguaranteetimes33.0136.41-9.34%EBITDATimeinterestearnedratio
31.9329.926.72%Repaymentofdebt(%)100.00%100.00%Paymentofinterest(%)100.00%100.00%
SectionXFinancialReport
I.AuditorReportWhetheraudithasbeenperformedonthisinterimfinancialreport□Yes√NoTheCompany’s2021HalfYearReporthasnotbeenaudited
II.FinancialStatementsUnitsoffinancialreportsinthenotes:RMB
1.ConsolidatedBalanceSheet
Preparedby:ZhejiangSanhuaIntelligentControlsCo.,Ltd.
June30,2021
Unit:RMBItemsJune30,2021December31,2020Currentasset:
CashandBankBalances6,301,888,182.653,489,687,568.14SettlementfundsLoanstootherbanksHeld-for-tradingfinancialassets189,524,312.14752,224,861.78Derivativefinancialassets26,392,706.6258,330,486.53Notesreceivable2,019,431,592.732,323,934,781.53Accountsreceivable3,100,856,902.632,355,613,299.57ReceivablefinancingAdvancespaid101,251,054.0869,404,326.45PremiumreceivableReinsuranceaccountsreceivableReinsurancereservesreceivableOtherreceivables98,155,207.5176,935,495.05Including:Interestreceivable
DividendsreceivableRepurchasingoffinancialassetsInventories2,917,803,847.902,307,761,706.46
ContractassetsAssetsheldforsalesNon-currentassetsduewithinoneyearOthercurrentassets131,694,347.04150,460,488.01Totalcurrentassets14,886,998,153.3011,584,353,013.52Non-currentassets:
LoansandadvancespaidDebtinvestmentsOtherdebtinvestmentsLong-termreceivable2,295,085.002,074,750.00Long-termequityinvestments17,828,507.3815,219,616.68Otherequityinstrumentinvestments
Othernon-currentfinancialassetsInvestmentproperty9,398,176.5410,067,588.96Fixedassets3,965,615,647.933,839,408,059.45Constructioninprogress914,010,795.59628,730,529.07ProductivebiologicalassetsOil&gasassetsRight-of-useassetsIntangibleassets643,300,116.81507,693,672.93DevelopmentexpendituresGoodwill31,959,091.6031,959,091.60Long-termprepayments26,140,183.6823,706,401.61Deferredtaxassets144,257,327.85137,808,879.28Othernon-currentassets365,696,226.22251,509,127.08Totalnon-currentassets6,120,501,158.605,448,177,716.66Totalassets21,007,499,311.9017,032,530,730.18Currentliabilities:
Short-termborrowings521,381,193.64383,088,296.60CentralbankloansLoansfromotherbanksHeld-for-tradingfinancialliabilities
Derivativefinancialliabilities7,726,384.627,939,957.91Notespayable1,856,484,983.841,238,574,463.73Accountspayable2,491,675,800.212,279,661,755.97Advancesreceived10,000,000.0010,000,000.00Contractliabilities44,096,560.8642,581,607.67SellingofrepurchasedfinancialassetsAbsorbingdepositandinterbankdepositDepositforagencysecuritytransactionDepositforagencysecurityunderwriting
Employeebenefitspayable219,968,593.89289,305,913.99Taxesandratespayable113,721,224.4675,008,142.06Otherpayables229,547,075.23270,888,400.58Including:InterestPayable
DividendsPayable1,200,000.00Handlingfeeandcommissionpayable
ReinsuranceaccountspayableLiabilitiesclassifiedasheldforsaleNon-currentliabilitiesduewithinoneyear
1,012,141,338.04130,553,923.87OthercurrentliabilitiesTotalcurrentliabilities6,506,743,154.794,727,602,462.38Non-currentliabilities:
InsurancepolicyreserveLong-termborrowings917,425,691.861,707,918,994.87Bondspayable2,588,449,353.66Including:Preferredshares
PerpetualbondsLeaseliabilitiesLong-termpayables84,940,677.9190,336,083.27Long-termemployeebenefits
payableProvisions2,638,000.00Deferredincome134,799,813.94140,105,336.43Deferredtaxliabilities151,508,468.13130,778,184.48Othernon-currentliabilities79,000,938.7480,398,897.72Totalnon-currentliabilities3,956,124,944.242,152,175,496.77Totalliabilities10,462,868,099.036,879,777,959.15Equity:
Sharecapital3,591,601,468.003,591,601,468.00Otherequityinstruments409,766,556.24Including:Preferredshares
PerpetualbondsCapitalreserve335,514,496.32315,417,434.22Less:Treasuryshares243,244,768.84281,483,741.34
Othercomprehensiveincome-106,871,598.13-89,624,962.61SpecialreserveSurplusreserve637,967,613.47637,967,613.47GeneralriskreserveUndistributedprofit5,819,343,336.535,890,916,707.83TotalequityattributabletotheparentCompany
10,444,077,103.5910,064,794,519.57Non-controllinginterest100,554,109.2887,958,251.46Totalequity10,544,631,212.8710,152,752,771.03Totalliabilities&equity21,007,499,311.9017,032,530,730.18Legalrepresentative:ZhangYaboOfficerinchargeofaccounting:YuYingkuiHeadofaccountingdepartment:ShengXiaofeng
2.ParentCompanyBalanceSheet
Unit:RMBItemsJune30,2021December31,2020Currentassets:
Cashandbankbalances2,959,776,349.701,848,930,095.07Held-for-tradingfinancialassets100,000,000.00323,000,000.00Derivativefinancialassets7,353,623.488,856,174.56Notesreceivable888,134,401.64773,393,944.74
Accountsreceivable510,046,587.17729,906,676.91ReceivablesfinancingAdvancespaid5,250,160.026,803,910.27Otherreceivables396,489,965.06348,897,078.11Including:InterestReceivable
DividendsReceivable1,800,000.00Inventories530,323,536.73553,388,303.73ContractassetsAssetsclassifiedasheldforsaleNon-currentassetsduewithinoneyearOthercurrentassets36,417,031.9946,083,837.26Totalcurrentassets5,433,791,655.794,639,260,020.65Non-currentassets:
DebtinvestmentsOtherdebtinvestmentsLong-termreceivableLong-termequityinvestments6,129,331,347.104,528,546,229.37OtherequityinstrumentinvestmentsOthernon-currentfinancialassetsInvestmentpropertyFixedassets1,548,514,876.611,565,826,802.57Constructioninprogress42,341,929.7871,862,243.72ProductivebiologicalassetsOil&gasassetsRight-of-useassetsIntangibleassets153,679,564.23156,335,743.52DevelopmentexpendituresGoodwillLong-termprepaymentsDeferredtaxassets7,419,451.657,336,345.87Othernon-currentassets49,684,556.6336,566,524.79Totalnon-currentassets7,930,971,726.006,366,473,889.84Totalassets13,364,763,381.7911,005,733,910.49Currentliabilities:
Short-termborrowings20,012,527.78Held-for-tradingfinancialliabilitiesDerivativefinancialliabilities2,395,550.00Notespayable499,079,955.18381,631,833.96Accountspayable1,568,983,343.651,566,994,944.07AdvancesreceivedContractliabilities261,929.111,155,759.09Employeebenefitspayable54,314,740.5993,150,785.46Taxesandratespayable8,234,550.3610,811,341.50Otherpayables1,173,975,858.951,355,955,388.81
Including:interestpayable
DividendsPayableLiabilitiesclassifiedasheldforsaleNon-currentliabilitiesduewithinoneyear770,756,434.72OthercurrentliabilitiesTotalcurrentliabilities4,078,002,362.563,429,712,580.67Non-currentliabilities:
Long-termborrowings660,582,222.221,381,428,522.65Bondspayable2,588,449,353.66
Including:Preferredshares
PerpetualbondsLeaseliabilitiesLong-termpayablesLong-termemployeebenefitspayableProvisions2,638,000.00Deferredincome31,801,319.5635,908,399.54Deferredtaxliabilities45,003,642.0448,177,657.42Othernon-currentliabilitiesTotalnon-currentliabilities3,325,836,537.481,468,152,579.61Totalliabilities7,403,838,900.044,897,865,160.28Equity:
Sharecapital3,591,601,468.003,591,601,468.00Otherequityinstruments409,766,556.24
Including:Preferredshares
PerpetualbondsCapitalreserve1,224,991,751.621,198,721,706.52Less:treasuryshares243,244,768.84281,483,741.34OthercomprehensiveincomeSpecialreserveSurplusreserve509,280,441.15509,280,441.15Undistributedprofit468,529,033.581,089,748,875.88Totalequity5,960,924,481.756,107,868,750.21Totalliabilities&equity13,364,763,381.7911,005,733,910.49
3.ConsolidatedIncomestatement
Unit:RMBItems2021Interim2020InterimI.Totaloperatingrevenue7,674,081,761.695,318,178,626.77
Including:Operatingrevenue7,674,081,761.695,318,178,626.77
InterestincomePremiumearnedRevenuefromhandlingchargesandcommissionII.Totaloperatingcost6,735,994,919.864,658,848,422.13
Including:Operatingcost5,601,811,479.623,839,626,004.70InterestexpensesHandlingchargesandcommissionexpenditures
SurrendervalueNetpaymentofinsuranceclaimsNetprovisionofinsurancepolicyreservePremiumbonusexpendituresReinsuranceexpensesTaxesandsurcharges36,363,153.0536,309,640.40Sellingexpenses321,908,769.46257,442,500.54Administrativeexpenses374,431,536.21315,350,745.15R&Dexpenses352,175,549.62240,012,928.38Financialexpenses49,304,431.90-29,893,397.04
Including:Interestexpenses40,208,255.7532,558,310.10
Interestincome43,640,017.3119,167,271.27Add:Otherincome72,081,481.22101,528,141.23Investmentincome(or“-”:losses)97,400,173.01-8,109,921.96Including:Investmentincomefromassociatesandjointventures
4,108,890.701,826,673.64Gainsfromderecognitionoffinancialassetsatamortizedcost
-3,707,072.41-114,807.17Gainsonforeignexchange(or“-”:
losses)Gainsonnetexposuretohedgingrisk(or“-”:losses)
Gainsonchangesinfairvalue(or“-”:losses)
-32,695,697.386,520,045.96
Creditimpairmentloss(or“-”:
losses)
-48,442,168.40-12,874,290.80
Assetsimpairmentloss(or“-”:
losses)
-18,614,580.55-6,302,857.17
Gainsonassetdisposal(or“-”:
losses)
400,172.51-319,355.00III.Operatingprofit(or“-”:losses)1,008,216,222.24739,771,966.90Add:Non-operatingrevenue2,472,160.141,466,984.81Less:Non-operatingexpenditures3,604,181.701,354,079.15IV.Profitbeforetax(or“-”:losses)1,007,084,200.68739,884,872.56Less:Incometaxexpense170,607,121.1699,017,348.37V.Netprofit(or“-”:losses)836,477,079.52640,867,524.19(I)Categorizedbythecontinuityofoperations
1.Netprofitfromcontinuing
operations(or“-”:losses)
836,477,079.52640,867,524.19
2.Netprofitfromdiscontinued
operations(or“-”:losses)(II)Categorizedbytheportionofequityownership
1.Netprofitattributabletoowners
ofparentCompany
823,881,221.70643,481,717.35
2.Netprofitattributableto
12,595,857.82-2,614,193.16
non-controllingshareholdersVI.Othercomprehensiveincomeaftertax
-17,246,635.52-26,456,121.98ItemsattributabletotheownersoftheparentCompany
-17,246,635.52-26,456,121.98(I)Nottobereclassifiedsubsequentlytoprofitorloss
1.Changesinremeasurementon
thenetdefinedbenefitplan
2.Itemsunderequitymethodthat
willnotbereclassifiedtoprofitorloss
3.Changesinfairvalueofother
equityinstrumentinvestments
4.Changesinfairvalueofown
creditrisk
5.Others
(II)Tobereclassifiedsubsequentlytoprofitorloss
-17,246,635.52-26,456,121.98
1.Itemsunderequitymethodthat
maybereclassifiedtoprofitorloss
2.Changesinfairvalueofother
debtinvestments
3.Profitorlossfrom
reclassificationoffinancialassetsintoothercomprehensiveincome
4.Provisionforcreditimpairment
ofotherdebtinvestments
5.Cashflowhedgingreserve
6.Translationreserve-17,246,635.52-26,456,121.98
7.Others
Itemsattributabletonon-controllingshareholdersVII.Totalcomprehensiveincome819,230,444.00614,411,402.21
ItemsattributabletotheownersoftheparentCompany
806,634,586.18617,025,595.37
Itemsattributabletonon-controllingshareholders
12,595,857.82-2,614,193.16VIII.Earningspershare(EPS):
(I)BasicEPS0.230.18(II)DilutedEPS0.230.18Legalrepresentative:ZhangYaboOfficerinchargeofaccounting:YuYingkuiHeadofaccountingdepartment:ShengXiaofeng
4.IncomestatementoftheParentCompany
Unit:RMBItems2021Interim2020InterimI.Operatingrevenue2,657,932,583.462,117,212,102.62Less:Operatingcost2,099,047,503.771,616,751,481.77
Taxesandsurcharges14,087,430.3814,883,710.72Sellingexpenses18,489,336.9515,130,538.49Administrativeexpenses88,329,399.3772,140,520.61R&Dexpenses130,378,747.7288,292,793.63Financialexpenses28,429,967.538,904,811.12Including:Interestexpenses38,011,175.5134,495,598.61
Interestincome21,728,593.7510,398,609.20Add:Otherincome26,148,191.5752,824,654.27Investmentincome(or“-”:losses)32,124,589.3610,995,316.73Including:Investmentincomefromassociatesandjointventures
3,703,896.301,922,776.38Gainsfromderecognitionoffinancialassetsatamortizedcost(or“-”:losses)Gainsonnetexposuretohedging(or“-”:losses)Gainsonchangesinfairvalue(or“-”:losses)
-3,898,101.0812,520,875.00Creditimpairmentloss(or“-”:
losses)
-2,333,077.791,810,314.30Assetsimpairmentloss(or“-”:
losses)Gainsonassetdisposal(or“-”:
losses)
31,965.0860,000.75II.Operatingprofit(or“-”:losses)331,243,764.88379,319,407.33Add:Non-operatingrevenue703,532.10472,666.13
Less:Non-operatingexpenditures553,058.35137,009.04III.Profitbeforetax(or“-”:losses)331,394,238.63379,655,064.42Less:Incometaxexpense57,159,487.9342,344,717.35IV.Netprofit(or“-”:losses)274,234,750.70337,310,347.07
(I)Netprofitfromcontinuingoperations(or“-”:losses)
274,234,750.70337,310,347.07
(II)Netprofitfromdiscontinuedoperations(or“-”:losses)V.Othercomprehensiveincomeaftertax
(I)Nottobereclassifiedsubsequentlytoprofitorloss
1.Changesinremeasurementon
thenetdefinedbenefitplan
2.Itemsunderequitymethodthat
willnotbereclassifiedtoprofitorloss
3.Changesinfairvalueofother
equityinstrumentinvestments
4.Changesinfairvalueofown
creditrisk
5.Others
(II)Tobereclassifiedsubsequentlytoprofitorloss
1.Itemsunderequitymethodthat
maybereclassifiedtoprofitorloss
2.Changesinfairvalueofother
debtinvestments
3.Profitorlossfrom
reclassificationoffinancialassetsintoothercomprehensiveincome
4.Provisionforcreditimpairment
ofotherdebtinvestments
5.Cashflowhedgingreserve
6.Translationreserve
7.Others
VI.Totalcomprehensiveincome274,234,750.70337,310,347.07
5.ConsolidatedCashFlowStatement
Unit:RMBItems2021Interim2020InterimI.Cashflowsfromoperatingactivities:
Cashreceiptsfromsaleofgoodsorrenderingofservices
7,791,922,676.435,669,226,956.30
Netincreaseofclientdepositandinterbankdeposit
Netincreaseofcentralbankloans
Netincreaseofloansfromotherfinancialinstitutions
Cashreceiptsfromoriginalinsurancecontractpremium
Netcashreceiptsfromreinsurance
Netincreaseofpolicy-holderdepositandinvestment
Cashreceiptsfrominterest,handlingchargesandcommission
Netincreaseofloansfromothers
Netincreaseofrepurchase
Netcashreceiptsfromagencysecuritytransaction
Receiptsoftaxrefund292,769,667.23135,301,637.22
Othercashreceiptsrelatedtooperatingactivities
112,704,898.93138,981,847.05Subtotalofcashinflowsfromoperatingactivities
8,197,397,242.595,943,510,440.57Cashpaymentsforgoodspurchasedandservicesreceived
5,594,083,556.183,476,000,876.09NetincreaseofloansandadvancestoclientsNetincreaseofcentralbankdepositandinterbankdepositCashpaymentsforinsuranceindemnitiesoforiginalinsurancecontractsNetincreaseofloanstoothers
Cashpaymentsforinterest,handlingchargesandcommissionCashpaymentsforpolicybonusCashpaidtoandonbehalfofemployees
1,043,695,672.97783,884,263.51
Cashpaymentsfortaxesandrates212,797,119.37205,682,821.70
Othercashpaymentsrelatedtooperatingactivities
521,604,270.81373,291,029.85Subtotalofcashoutflowsfromoperatingactivities
7,372,180,619.334,838,858,991.15Netcashflowsfromoperatingactivities825,216,623.261,104,651,449.42II.Cashflowsfrominvestingactivities:
CashreceiptsfromwithdrawalofinvestmentsCashreceiptsfrominvestmentincome
5,663,475.2923,348,369.16
Netcashreceiptsfromthedisposaloffixedassets,intangibleassetsandotherlong-termassets
508,246.832,066,447.61
Netcashreceiptsfromthedisposalofsubsidiaries&otherbusinessunits
Othercashreceiptsrelatedtoinvestingactivities
671,922,049.93277,649,043.00Subtotalofcashinflowsfrominvestingactivities
678,093,772.05303,063,859.77Cashpaymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-termassets
955,954,243.67442,252,824.96CashpaymentsforinvestmentsNetincreaseofpledgedborrowingsNetcashpaymentsfortheacquisitionofsubsidiaries&otherbusinessunitsOthercashpaymentsrelatedtoinvestingactivities
35,150,010.98540,203,379.47Subtotalofcashoutflowsfrominvestingactivities
991,104,254.65982,456,204.43Netcashflowsfrominvestingactivities-313,010,482.60-679,392,344.66III.Cashflowsfromfinancing
activities:
Cashreceiptsfromabsorbinginvestments
118,643,250.00
Including:Cashreceivedbysubsidiariesfromnon-controllingshareholdersasinvestments
Cashreceiptsfromborrowings283,678,800.001,379,378,896.06
Othercashreceiptsrelatedtofinancingactivities
2,987,977,500.0026,080,652.17Subtotalofcashinflowsfromfinancingactivities
3,271,656,300.001,524,102,798.23Cashpaymentsfortherepaymentofborrowings
38,237,578.82758,969,786.13Cashpaymentsfordistributionofdividendsorprofitsandforinterestexpenses
924,187,677.93451,059,488.63Including:Cashpaidbysubsidiariestonon-controllingshareholdersasdividendorprofit
2,680,000.00Othercashpaymentsrelatedtofinancingactivities
9,409,814.513,780,305.89Subtotalofcashoutflowsfromfinancingactivities
971,835,071.261,213,809,580.65Netcashflowsfromfinancingactivities2,299,821,228.74310,293,217.58IV.Effectofforeignexchangeratechangesoncash&cashequivalents
-17,246,635.52-25,656,121.98V.Netincreaseincashandcashequivalents
2,794,780,733.88709,896,200.36Add:Openingbalanceofcashandcashequivalents
3,400,144,038.542,553,783,015.01VI.Closingbalanceofcashandcashequivalents
6,194,924,772.423,263,679,215.37
6.CashFlowStatementoftheParentCompany
Unit:RMBItems2021Interim2020InterimI.Cashflowsfromoperatingactivities:
Cashreceiptsfromsaleofgoodsandrenderingofservices
2,501,766,645.731,582,936,545.48
Receiptsoftaxrefund69,595,321.1545,688,483.71
Othercashreceiptsrelatedtooperatingactivities
44,634,342.3259,466,164.51Subtotalofcashinflowsfromoperatingactivities
2,615,996,309.201,688,091,193.70Cashpaymentsforgoodspurchasedandservicesreceived
1,584,525,056.92822,533,884.63Cashpaidtoandonbehalfofemployees
259,052,505.85193,396,299.54Cashpaymentsfortaxesandrates67,230,440.0851,272,174.14Othercashpaymentsrelatedtooperatingactivities
99,950,220.2079,419,321.52Subtotalofcashoutflowsfromoperatingactivities
2,010,758,223.051,146,621,679.83Netcashflowsfromoperatingactivities605,238,086.15541,469,513.87II.Cashflowsfrominvestingactivities:
Cashreceiptsfromwithdrawalofinvestments
3,000,000.00
Cashreceiptsfrominvestmentincome
21,811,801.456,834,184.92
Netcashreceiptsfromthedisposaloffixedassets,intangibleassetsandotherlong-termassets
104,233.67174,800.00
Netcashreceiptsfromthedisposalofsubsidiaries&otherbusinessunits
Othercashreceiptsrelatedtoinvestingactivities
229,811,657.82175,228,503.46Subtotalofcashinflowsfrominvestingactivities
251,727,692.94185,237,488.38Cashpaymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-termassets
89,501,487.52102,274,729.91Cashpaymentsforinvestments1,581,000,000.00140,874,000.00Netcashpaymentsfortheacquisitionofsubsidiaries&otherbusinessunitsOthercashpaymentsrelatedtoinvestingactivities
88,686,804.01472,363,792.38Subtotalofcashoutflowsfrominvestingactivities
1,759,188,291.53715,512,522.29
Netcashflowsfrominvestingactivities-1,507,460,598.59-530,275,033.91III.Cashflowsfromfinancingactivities:
Cashreceiptsfromabsorbinginvestments
118,643,250.00
Cashreceiptsfromborrowings50,000,000.001,159,811,000.00
Othercashreceiptsrelatedtofinancingactivities
3,139,300,342.01161,770,652.17Subtotalofcashinflowsfromfinancingactivities
3,189,300,342.011,440,224,902.17Cashpaymentsfortherepaymentofborrowings
20,000,000.00570,000,000.00Cashpaymentsfordistributionofdividendsorprofitsandforinterestexpenses
919,172,149.40437,223,073.41Othercashpaymentsrelatedtofinancingactivities
250,973,534.6112,254,861.11Subtotalofcashoutflowsfromfinancingactivities
1,190,145,684.011,019,477,934.52Netcashflowsfromfinancingactivities1,999,154,658.00420,746,967.65IV.EffectofforeignexchangeratechangesoncashandcashequivalentsV.Netincreaseincashandcashequivalents
1,096,932,145.56431,941,447.61Add:Openingbalanceofcashandcashequivalents
1,803,237,880.51974,923,339.25VI.Closingbalanceofcashandcashequivalents
2,900,170,026.071,406,864,786.86
7.ConsolidatedStatementofChangesinOwners'Equity
Amountofthisperiod
Unit:RMB
Items
2021InterimEquityAttributabletoparentCompany
Non-controllinginterest
TotalequityShareCapital
Otherequityinstruments
Capitalreserve
Less:
treasuryshares
Othercomprehensiveincome
SpecialreserveSurplusreserve
GeneralriskreserveUndistributedprofit
Others
SubtotalPreferredsharesPerpetualbonds
OthersI.Balanceattheendofprioryear
3,591,601,46
8.00
315,417,434
.22281,483,741
.34-89,624,962.
637,967,613
.47
5,890,916,70
7.83
10,064,794,51
9.57
87,958,251.4
10,152,752,77
1.03
Add:
CumulativechangesofaccountingpoliciesErrorcorrectionofpriorperiodBusinesscombinationunder
ZhejiangSanhua
commoncontrolOthersII.Balanceatthebeginningofcurrentyear
3,591,601,46
8.00
315,417,434
.22281,483,741
.34-89,624,962.
637,967,613
.47
5,890,916,70
7.83
III.Currentperiodincrease(or“-”:
decrease)
409,766,556
.2420,097,062.
-38,238,972.
-17,246,635.
-71,573,371.3
(I)Totalcomprehensiveincome
-17,246,635.
823,881,221.
(II)Capitalcontributedorwithdrawnbyowners
409,766,556
.2420,097,062.
-38,238,972.
1.Ordinary
sharescontributedbyowners
2.Capital
contributed
409,766,556
.24
ZhejiangSanhua
byholdersofotherequityinstruments
3.Amount
ofshare-basedpaymentincludedinequity
20,097,062.
-38,238,972.
4.Others
(III)Profitdistribution
-895,454,593.
1.Appropriationofsurplusreserve2.Appropriationofgeneralriskreserve3.Appropriationofprofittoowners
-895,454,593.
4.Others
ZhejiangSanhua
(IV)Internalcarry-overwithinequity
1.Transfer
ofcapitalreservetocapital
2.Transfer
ofsurplusreservetocapital
3.Surplus
reservetocoverlosses
4.Changes
indefinedbenefitplancarriedovertoretainedearnings
5.Other
comprehensiveincomecarriedovertoretainedearnings
ZhejiangSanhua
6.Others
(V)Specialreserve1.Appropriationofcurrentperiod2.Applicationofcurrentperiod(VI)OthersIV.Balanceattheendofcurrentperiod
3,591,601,46
8.00
409,766,556
.24335,514,496
.32243,244,768
.84-106,871,598
.13
637,967,613
.47
5,819,343,33
6.53
AmountofPreviousPeriod
Items
2020InterimEquityAttributabletoparentCompany
ShareCapital
Otherequityinstruments
Capitalreserve
Less:
treasuryshares
Othercomprehensiveincome
SpecialreserveSurplusreserve
GeneralriskreserveUndistributedprofit
IntelligentOther
sPreferredshares
Perpetualbonds
OthersI.Balanceat2,765,657,898.1,090,800,022.363,781,151.-39,332,748.559,896,619.5,278,392,288.
ZhejiangSanhua
theendofprioryear
000634503984Add:
CumulativechangesofaccountingpoliciesErrorcorrectionofpriorperiodBusinesscombinationundercommoncontrolOthersII.Balanceatthebeginningofcurrentyear
2,765,657,898.
1,090,800,022.
363,781,151.
-39,332,748.
559,896,619.
5,278,392,288.
III.Currentperiodincrease(or“-”:
decrease)
826,383,880.0
-847,059,678.
-54,328,425.
-26,456,121.
230,144,177.0
(I)Total-26,456,121.643,481,717.3
ZhejiangSanhua
comprehensiveincome
(II)Capitalcontributedorwithdrawnbyowners
-291,200.00
-20,384,598.0
-54,328,425.
1.Ordinary
sharescontributedbyowners
-49,264,050.0
-49,264,050.
2.Capital
contributedbyholdersofotherequityinstruments
3.Amount
ofshare-basedpaymentincludedinequity
30,463,131.96
4.Others-291,200.00-1,583,680.00
-5,064,375.0
(III)Profitdistribution
-413,337,540.
1.
ZhejiangSanhua
Appropriationofsurplusreserve2.Appropriationofgeneralriskreserve3.Appropriationofprofittoowners
-413,337,540.
4.Others
(IV)Internalcarry-overwithinequity
826,675,080.0
-826,675,080.
1.Transfer
ofcapitalreservetocapital
826,675,080.0
-826,675,080.
2.Transfer
ofsurplusreservetocapital
3.Surplus
reservetocoverlosses
ZhejiangSanhua
4.Changes
indefinedbenefitplancarriedovertoretainedearnings
5.Other
comprehensiveincomecarriedovertoretainedearnings
6.Others
(V)Specialreserve1.Appropriationofcurrentperiod2.Applicationofcurrentperiod(VI)OthersIV.Balanceattheendofcurrentperiod
3,592,041,778.
243,740,344.0
309,452,726.
-65,788,870.
559,896,619.
5,508,536,465.
ZhejiangSanhua
8.StatementofChangesinOwners'EquityoftheParentCompanyAmountofthisperiod
Items
2021InterimShareCapital
Otherequityinstruments
Capitalreserve
Less:treasuryshares
Othercomprehensive
income
Specialreserve
Surplus
Intelligentreserve
Preferredshares
Perpetualbonds
OthersI.Balanceattheendofprioryear
3,591,601,468.001,198,721,706.52281,483,741.34
reserve509,280,441.15
Add:
CumulativechangesofaccountingpoliciesErrorcorrectionofpriorperiodOthersII.Balanceatthebeginningofcurrentyear
3,591,601,468.001,198,721,706.52281,483,741.34
509,280,441.15509,280,441.15
III.Currentperiodincrease(orless:
decrease)
409,766,556.2426,270,045.10-38,238,972.50(I)Totalcomprehensiveincome(II)Capitalcontributedorwithdrawnbyowners
409,766,556.2426,270,045.10-38,238,972.50
1.Ordinaryshares
contributedby
ZhejiangSanhua
owners
2.Capital
contributedbyholdersofotherequityinstruments
409,766,556.24
3.Amountof
share-basedpaymentincludedinequity
26,270,045.10-38,238,972.50
4.Others
(III)Profitdistribution
1.Appropriationof
surplusreserve
2.Appropriationof
profittoowners
3.Others
(IV)Internalcarry-overwithinequity
1.Transferof
capitalreservetocapital
2.Transferof
surplusreservetocapital
3.Surplusreserve
tocoverlosses
4.Changesin
definedbenefitplancarriedovertoretainedearnings
5.Other
comprehensiveincomecarriedovertoretainedearnings
ZhejiangSanhua
6.Others
(V)Specialreserve
1.Appropriationof
currentperiod
2.Applicationof
currentperiod(VI)OthersIV.Balanceattheendofcurrentperiod
3,591,601,468.00409,766,556.241,224,991,751.62243,244,768.84
Intelligent509,280,441.15
AmountofPreviousPeriod
Items
2020InterimShareCapital
Otherequityinstruments
Capitalreserve
Less:treasuryshares
Othercomprehensiveincome
Specialreserve
SurplusreservePreferredshares
Perpetualbonds
OthersI.Balanceattheendofprioryear
2,765,657,898.002,005,303,119.53363,781,151.34431,209,447.07Add:
CumulativechangesofaccountingpoliciesErrorcorrectionofpriorperiodOthersII.Balanceatthebeginningofcurrentyear
2,765,657,898.002,005,303,119.53363,781,151.34431,209,447.07III.Currentperiodincrease(orless:
826,383,880.00-847,059,678.04-54,328,425.00
ZhejiangSanhua
decrease)(I)Totalcomprehensiveincome(II)Capitalcontributedorwithdrawnbyowners
-291,200.00-20,384,598.04-54,328,425.00
1.Ordinaryshares
contributedbyowners
-49,264,050.00-49,264,050.00
2.Capital
contributedbyholdersofotherequityinstruments
3.Amountof
share-basedpaymentincludedinequity
30,463,131.96
4.Others-291,200.00-1,583,680.00-5,064,375.00(III)Profitdistribution
1.Appropriationof
surplusreserve
2.Appropriationof
profittoowners
3.Others
(IV)Internalcarry-overwithinequity
826,675,080.00-826,675,080.00
1.Transferofcapital
reservetocapital
826,675,080.00-826,675,080.00
2.Transferof
surplusreservetocapital
3.Surplusreserveto
coverlosses
ZhejiangSanhua
4.Changesin
definedbenefitplancarriedovertoretainedearnings
5.Other
comprehensiveincomecarriedovertoretainedearnings
6.Others
(V)Specialreserve
1.Appropriationof
currentperiod
2.Applicationof
currentperiod(VI)OthersIV.Balanceattheendofcurrentperiod
3,592,041,778.001,158,243,441.49309,452,726.34431,209,447.07
III.CompanyprofileTheCompanywasestablishedbytheoriginalSanhuaFujiKokiCo.,Ltd.TheCompanycurrentlyholdsabusinesslicensewithaunifiedsocialcreditcodeof913300006096907427registeredandissuedbyZhejiangAdministrationofIndustryandCommerce,withheadquarterinShaoxingCity,ZhejiangProvince.TheregisteredcapitalofRMB3,591,601,468.00,totalshareof3,591,601,468shares(eachwithparvalueofRMB1).TheCompany’sshareswerelistedatShenzhenStockExchange.TheCompanyoperatesinthemachinerymanufacturingindustry.BusinessscopeincludesproductionandmarketingofServiceValve,ElectronicExpansionvalve,DrainagePump,SolenoidValve,One-wayValve,CompressorParts,PressurePipelineComponents,ElectromechanicalHydraulicControlPumpandotherelectromechanicalhydrauliccontrolcomponents,undertakingservicesofinspection,testandanalysisofrefrigerationaccessories,andengaginginimportandexportbusiness.MainproductsincludecontrolcomponentsandpartsofhouseholdappliancesandautomobileA/C.ThefinancialstatementshavebeenapprovedbytheboardofdirectorsoftheCompanyanddisclosedonAugust11th,2021.ZhejiangSanhuaClimateandApplianceControlsGroupCo.,Ltd.andothersubsidiariesareincludedinthescopeofconsolidatedfinancialstatementsinthecurrentperiod.Forfurtherdetails,pleaserefertothechangeofconsolidationscopeinthenotestothefinancialreportandthedescriptionofequityinotherentities.IV.Preparationbasisofthefinancialstatements
1.Preparationbasis
Thefinancialstatementshavebeenpreparedonthebasisofgoingconcern.
2.Goingconcern
TheCompanyhasnoeventsorconditionsthatmaycastsignificantdoubtsupontheCompany’sabilitytocontinueasagoingconcernwithinthe12monthsafterthebalancesheetdate.
V.SignificantaccountingpoliciesandestimatesNotestospecificaccountingpoliciesandaccountingestimates:
1.StatementofcompliancewithChinaAccountingStandardsforBusinessEnterprises
ThefinancialstatementshavebeenpreparedinaccordancewiththerequirementsofChinaAccountingStandardsforBusinessEnterprises(CASBEs),andpresenttrulyandcompletelythefinancialposition,resultsofoperationsandcashflowsoftheCompany.2.Accountingperiod
TheaccountingperiodoftheCompanyisfrom1Januaryto31Decemberofeachcalendaryear.
3.OperatingcycleTheCompanyhasarelativelyshortoperatingcycleforitsbusiness,anassetoraliabilityisclassifiedascurrentifitisexpectedtoberealizedorduewithin12months.4.FunctionalcurrencyTheCompany’sfunctionalcurrencyisRenminbi(RMB)Yuan.5.Accountingtreatmentsofbusinesscombinationunderandnotundercommoncontrol
1.AccountingtreatmentofbusinesscombinationundercommoncontrolAssetsandliabilitiesarisingfrombusinesscombinationaremeasuredatcarryingamountofthecombinedpartyincludedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Differencebetweencarryingamountoftheequityofthecombinedpartyincludedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyandthatofthecombinationconsiderationortotalparvalueofsharesissuedisadjustedtocapitalreserve,ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.
2.AccountingtreatmentofbusinesscombinationnotundercommoncontrolWhencombinationcostisinexcessofthefairvalueofidentifiablenetassetsobtainedfromtheacquireattheacquisitiondate,theexcessisrecognizedasgoodwill;otherwise,thefairvalueofidentifiableassets,liabilitiesandcontingentliabilities,andthemeasurementofthecombinationcostarereviewed,thenthedifferenceisrecognizedinprofitorloss.6.CompilationmethodofconsolidatedfinancialstatementsTheparentcompanybringsallitscontrolledsubsidiariesintotheconsolidationscope.Theconsolidatedfinancialstatementsarecompiledbytheparentcompanyaccordingto“CASBE33–ConsolidatedFinancialStatements”,basedonrelevantinformationandthefinancialstatementsoftheparentcompanyanditssubsidiaries.7.Recognitioncriteriaofcashandcashequivalents
Cashaspresentedincashflowstatementreferstocashonhandanddepositondemandforpayment.Cashequivalentsrefertoshort-term,highlyliquidinvestmentsthatcanbereadilyconvertedtocashandthataresubjecttoaninsignificantriskofchangesinvalue.8.Foreigncurrencytranslation
1.Translationoftransactionsdenominatedinforeigncurrency
TransactionsdenominatedinforeigncurrencyaretranslatedintoRMByuanatthespotexchangerate/thebeginningofthemonthexchangerateatthetransactiondateatinitialrecognition.Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrencyaretranslatedatthespotexchangerateatthebalancesheetdatewithdifference,exceptforthosearisingfromtheprincipalandinterestofexclusiveborrowingseligibleforcapitalization,includedinprofitorloss;non-cashitemscarriedathistoricalcostsaretranslatedatthespot
exchangerateatthetransactiondate,withitsRMBamountunchanged;non-cashitemscarriedatfairvalueinforeigncurrencyaretranslatedatthespotexchangerateatthedatewhenthefairvaluewasdetermined,withdifferenceincludedinprofitorlossorothercomprehensiveincome.
2.TranslationoffinancialstatementsmeasuredinforeigncurrencyTheassetsandliabilitiesinthebalancesheetaretranslatedintoRMBatthespotrateatthebalancesheetdate;theequityitems,otherthanundistributedprofit,aretranslatedatthespotrateatthetransactiondate;therevenuesandexpensesintheincomestatementaretranslatedintoRMBattheapproximateexchangeratesimilartothesystematicallyandrationallydeterminedspotexchangerateatthetransactiondate.Thedifferencearisingfromforeigncurrencytranslationisincludedinothercomprehensiveincome9.FinancialinstrumentsFinancialinstrumentsrefertocontractsthatformoneparty’sfinancialassetsintootherparties’financialliabilitiesorequityinstruments.
1.Classificationoffinancialassetsandfinancialliabilities
TheCompany'sfinancialassetsfallintotwomaincategories:(1)financialassetsatamortizedcost;(2)financialassetsatfairvaluethroughprofitorloss.Financialliabilitiesareclassifiedintothefollowingtwocategories:(1)financialliabilitiesatamortizedcost;(2)financialliabilitiesatfairvaluethroughprofitorloss.
2.Recognitioncriteria,measurementmethodandderecognitionconditionoffinancialassetsandfinancialliabilities
(1)Recognitioncriteriaandmeasurementmethodoffinancialassetsandfinancialliabilities
WhentheCompanybecomesapartytoafinancialinstrument,itisrecognizedasafinancialassetorfinancialliability.ThefinancialassetsandfinancialliabilitiesinitiallyrecognizedbytheCompanyaremeasuredatfairvalue;forthefinancialassetsandliabilitiesatfairvaluethroughprofitorloss,thetransactionexpensesthereofaredirectlyincludedinprofitorloss;forothercategoriesoffinancialassetsandfinancialliabilities,thetransactionexpensesthereofareincludedintotheinitiallyrecognizedamount.However,atinitialrecognition,foraccountsreceivablethatdonotcontainasignificantfinancingcomponentorcontractsinwhichthefinancingcomponentswithassociatedperiodlessthanoneyeararenotconsidered,theCompanymeasuresattheirtransactionprice.
(2)Subsequentmeasurementoffinancialassets
TheCompanymeasuresitsfinancialassetsattheamortizedcostsusingeffectiveinterestmethod.Gainsorlossesonfinancialassetsthataremeasuredatamortizedcostandarenotpartofhedgingrelationshipsshallbeincludedintoprofitorlosswhenthefinancialassetsarederecognized,reclassified,throughtheamortizationprocessorinordertorecognizeimpairmentgainsorlosses.
TheCompanymeasuresitsfinancialassetsatfairvalue.Gainsorlossesarisingfromchangesinfairvalue(includinginterestsanddividends)shallbeincludedintoprofitorloss,exceptforfinancialassetsthatarepartofhedgingrelationships.
(3)Subsequentmeasurementoffinancialliabilities
TheCompanymeasuresitsfinancialliabilitiesatamortizedcostusingeffectiveinterestmethod.Gainsorlossesonfinancialliabilitiesthataremeasuredatamortizedcostandarenotpartofhedgingrelationshipsshallbeincludedintoprofitorlosswhenthefinancialliabilitiesarederecognizedandthroughtheamortizationprocess.
Financialliabilitiesdesignatedasatfairvaluethroughprofitorloss.TheCompanymeasuressuchkindofliabilitiesatfairvalue.Othergainsorlossesonthosefinancialliabilitiesshallbeincludedintoprofitorloss,exceptforfinancialliabilitiesthatarepartofhedgingrelationships.
(4)Derecognitionoffinancialassetsandfinancialliabilities
1)Financialassetsarederecognizedwhen:
a.thecontractualrightstothecashflowsfromthefinancialassetsexpire;orb.thefinancialassetshavebeentransferredandthetransferqualifiesforderecognitioninaccordancewith“CASBE23–TransferofFinancialAssets”.
2)Onlywhentheunderlyingpresentobligationsofafinancialliabilityarerelievedtotallyorpartlymaythefinancialliabilitybederecognizedaccordingly.
3.Recognitioncriteriaandmeasurementmethodoffinancialassetstransfer
WheretheCompanyhastransferredsubstantiallyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itderecognizesthefinancialasset,andanyrightorliabilityarisingfromsuchtransferisrecognizedindependentlyasanassetoraliability.Ifitretainedsubstantiallyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itcontinuesrecognizingthefinancialasset.
WheretheCompanydoesnottransferorretainsubstantiallyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itisdealtwithaccordingtothecircumstancesasfollowsrespectively:(1)iftheCompanydoesnotretainitscontroloverthefinancialasset,itderecognizesthefinancialasset,andanyrightorliabilityarisingfromsuchtransferisrecognizedindependentlyasanassetoraliability;(2)iftheCompanyretainsitscontroloverthefinancialasset,accordingtotheextentofitscontinuinginvolvementinthetransferredfinancialasset,itrecognizestherelatedfinancialassetandrecognizestherelevantliabilityaccordingly.
Ifthetransferofanentirefinancialassetsatisfiestheconditionsforderecognition,thedifferencebetweentheamountsofthefollowingtwoitemsareincludedinprofitorloss:(1)thecarryingamountofthetransferredfinancialassetasofthedateofderecognition;(2)thesumofconsiderationreceivedfromthetransferofthefinancialasset.
4.Fairvaluedeterminationmethodoffinancialassetsandliabilities
TheCompanyusevaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue.
5.Impairmentoffinancialinstruments
(1)Measurementandaccountingtreatment
TheCompany,onthebasisofexpectedcreditloss,recognizeslossallowancesoffinancialassetsatamortizedcost.TheCompanyconsidersreasonableandevidence-basedinformationaboutpastevents,currentconditions,andforecastsoffutureeconomicconditions,andusestheriskofdefaultastheweighttocalculatethedifferencebetweenthecontractualcashflowreceivableandtheexpectedcashflowProbability-weightedamountofthepresentvaluetoconfirmexpectedcreditlosses.TheCompanyseparatelymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstagesonthebalancesheetdate.Thefirststage,ifthecreditriskofafinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition,andthelossprovisionismeasuredaccordingtotheexpectedcreditlossinthenext12months.Thesecondstage,ifthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,andthelossprovisionismeasuredbasedontheexpectedcreditlossfortheentireduration.Thethirdstage,ifafinancialinstrumenthasbeencredit-impairedsinceitsinitialrecognition,andthelossprovisionismeasuredbasedontheexpectedcreditlossfortheentireduration.
Consideringreasonableandsupportableforward-lookinginformation,theCompanycomparestheriskofadefaultoccurringonthefinancialinstrumentasatthebalancesheetdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognition,soastoassesswhetherthecreditriskonthefinancialinstrumenthasincreasedsignificantlysinceinitialrecognition.
TheCompanymayassumethatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysince
initialrecognitionifthefinancialinstrumentisdeterminedtohavelowcreditriskonthebalancesheetdate.TheCompanymeasuresthelossprovisionaccordingtotheexpectedcreditlossinthenext12monthsRegardingtheaccountsreceivable(includingbillsreceivableandaccountsreceivable)stipulatedinthe"CASBE14–Revenue",regardlessofwhetheritcontainssignificantfinancingcomponents(includingfinancingincontractsnotexceedingoneyear)Component),theCompanymeasuresthelossprovisionbasedontheexpectedcreditlossfortheentireduration.
Forfinancialinstrumentsinthefirstandsecondstagesandwithlowercreditrisk,theinterestincomeiscalculatedbasedonthebookbalanceandtheeffectiveinterestratewithoutdeductingtheprovisionforimpairment.Forfinancialinstrumentsinthethirdstage,theinterestincomeiscalculatedbasedontheamortizedcostandtheactualinterestrateafterthebookbalanceminustheprovisionforimpairment.Ifthe"creditrisk-relatedinformation"ofasingleinstrumenthasbeenknownorisrelativelyeasilyavailable,theCompanyassessesexpectedcreditriskandmeasuresexpectedcreditlossesonthebasisofasinglefinancialinstrument.Suchfinancialinstrumentsusuallyincludeaccountsreceivablefromrelatedparties,depositdepositsreceivablefromgovernmentunitsorpublicutilityunits,andfinancialinstrumentswithsolidevidencethatcreditimpairmenthasoccurred.Ifsufficientevidenceof“creditrisk-relatedinformation”cannotbeobtainedatareasonablecostatthelevelofindividualinstruments,theCompanyassessesexpectedcreditriskandmeasuresexpectedcreditlossesbasedonacombinationoffinancialinstruments.TheCompanycombinesfinancialinstrumentsbasedonthesameorsimilarcreditriskcharacteristics,includingbutnotlimitedtoagingcombinations.
Iftheavailabilityof"creditrisk-relatedinformation"ofasingletoolchangesfrombeingdifficulttoobtaintobeingavailable,theCompanywillchangefromacombination-basedassessmentmeasurementtoasingletool-basedassessmentmeasurement.
TheCompanyremeasuresexpectedcreditlossesoneachbalancesheetdate,andtheresultingincreaseinlossreservesortheamountofreversalisincludedinthecurrentprofitsandlossesasimpairmentlossesorgains.Forfinancialassetsmeasuredatamortizedcost,thelossallowanceshallbedeductedfromthebookvalueofthefinancialassetslistedinthebalancesheet.
(2)Financialinstrumentswithexpectedcreditriskassessedandexpectedcreditlossesmeasuredonacollectivebasis
Forotherreceivablesthataredifficulttobeevaluatedandmeasuredbyasingletool,theCompanymainlycombinesagingasacreditriskfeature,referstohistoricalcreditlossexperience,combinescurrentconditionsandforecastsoffutureeconomicconditions,andadoptsdefaultriskexposureandTheexpectedcreditlossrateinthenext12monthsortheentiredurationisusedtocalculatetheexpectedcreditloss.
(3)Accountsreceivablewithexpectedcreditlossesmeasuredonacollectivebasis
Regardingtheaccountsreceivablespecifiedinthe"CASBE14–Revenue",regardlessofwhetheritcontainssignificantfinancingcomponents(includingfinancingcomponentsincontractsnotexceedingoneyear),refertohistoricalcreditlossexperienceandcombinecurrentThesituationandtheforecastoffutureeconomicconditions,throughthedefaultriskexposureandtheentiredurationoftheexpectedcreditlossrate,calculatetheexpectedcreditloss.Foraccountsreceivablethataredifficulttobeevaluatedandmeasuredbyasingletool,theCompanydividestheaccountsreceivableintoseveralcombinationsbasedoncreditriskcharacteristics,andcalculatestheexpectedcreditlossonthebasisofthecombination.Thebasisfordeterminingthecombinationandthespecificaccrualmethodareshownbelowtable:
PortfolioName
Basisfordeterminationof
portfolio
Methodformeasuringexpectedcreditloss
Notesreceivable—Bankacceptancebill
Acceptedbyfinancialinstitutions
NoprovisionNotesreceivable—Commercialacceptancebill
Notacceptedbyfinancialinstitutions
5%Accountsreceivable—Agesportfolios
Ages
receivablewithprovisionmadeonacollectivebasisbasedonthecomparisontableofageandexpectedcreditlossrateAccountsreceivable–comparisontableofagesandlifetimeexpectedcreditlossrate
AgesExpectedcreditlossrateWithin1year5%1-2years10%2-3years30%Over3years50%
6.Offsettingfinancialassetsandfinancialliabilities
Financialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetandarenotoffset.However,theCompanyoffsetsafinancialassetandafinancialliabilityandpresentsthenetamountinthebalancesheetwhenthosewhomeetthecorrespondingconditionsatthesametime.10.Inventories
1.Classificationofinventories
Inventoriesincludematerial,workinprocessintheprocessofproductionandfinishedgoodsetc.
2.Accountingmethodfordispatchinginventories
Inventoriesdispatchedfromstorageatactualcostareaccountedwithweightedaveragemethodattheendofeachmonth;Inventoriesdispatchedfromstorageaccordingtotheplan,thecostdifferencewillbecarriedforwardatthesametimeattheendofthemonth.
3.Basisfordeterminingnetrealizablevalue
Atthebalancesheetdate,inventoriesaremeasuredatthelowerofcostornetrealizablevalue;provisionsforinventorywrite-downaremadeontheexcessofitscostoverthenetrealizablevalue.Inventoryuseddirectlyforsale,inthecourseofnormalproductionandoperation,thenetrealizablevalueoftheinventoryshallbedeterminedbytheestimatedsellingpriceminustheestimatedsellingexpensesandrelatedtaxes;Inventoriesthatrequireprocessing,inthecourseofnormalproductionandoperation,thenetrealizablevalueofthefinishedproductshallbedeterminedbytheestimatedsellingpriceofthefinishedproductminustheestimatedcosttobeincurredatthetimeofcompletion,theestimatedsellingexpensesandtherelevanttaxesandfees.Onthebalancesheetdate,whereapartofthesameinventoryhasacontractpriceandotherpartsdonothaveacontractprice,thenetrealizablevaluethereofshallbedeterminedseparately,andcomparewiththecorrespondingcosttodeterminetheamountoftheprovisionforinventorydepreciationortheamountofthereversal.
4.Inventorysystem
Theperpetualinventorysystemisadopted.
5.Revolvingmaterialsareamortizedwithone-offmethod.
11.Contractassets
TheCompanypresentscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweenitsperformanceobligationsandcustomers’payments.Contractassetsandcontractliabilitiesunderthe
samecontractshalloffseteachotherandbepresentedonanetbasis.TheCompanypresentsanunconditionalrighttoconsideration(i.e.,onlythepassageoftimeisrequiredbeforetheconsiderationisdue)asareceivable,andpresentsarighttoconsiderationinexchangeforgoodsthatithastransferredtoacustomer(whichisconditionalonsomethingotherthanthepassageoftime)asacontractasset.12.Long-termequityinvestments
1.Judgmentofjointcontrolandsignificantinfluence
Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontrolofthesepolicies.
2.Determinationofinvestmentcost
(1)Forbusinesscombinationundercommoncontrol,iftheconsiderationofthecombiningpartyisthatitmakespaymentincash,transfersnon-cashassets,assumesitsliabilitiesorissuesequitysecurities,onthedateofcombination,itregardstheshareofthecarryingamountoftheequityofthecombinedpartyincludedtheconsolidatedfinancialstatementsoftheultimatecontrollingpartyastheinitialcostoftheinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentsandthecarryingamountofthecombinationconsiderationpaidortheparvalueofsharesissuedoffsetscapitalreserve;ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.
(2)Forbusinesscombinationnotundercommoncontrol,investmentcostisinitiallyrecognizedattheacquisition-datefairvalueofconsiderationspaid.
(3)Long-termequityinvestmentsobtainedthroughwaysotherthanbusinesscombination:theinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashisthepurchasecostwhichisactuallypaid.
3.Subsequentmeasurementandrecognitionmethodofprofitorloss
Forlong-termequityinvestmentswithcontrolrelationship,itisaccountedforwithcostmethod;forlong-termequityinvestmentswithjointcontrolorsignificantinfluencerelationship,itisaccountedforwithequitymethod.
13.Investmentproperty
InvestmentpropertymeasurementmodelMeasurementbycostmethodDepreciationoramortizationmethod
1.Investmentpropertyincludeslanduserightofrent-outpropertyandofpropertyheldforcapitalappreciationandbuildingsthathavebeenleasedout.
2.Theinitialmeasurementofinvestmentpropertyisbasedonitscost,andsubsequentmeasurementismadeusingthecostmodel,thedepreciationoramortizationmethodisthesameasthatoffixedassetsandintangibleassets.
14.Fixedassets
(1)Recognitionprinciplesoffixedassets
Fixedassetsaretangibleassetsheldforuseintheproductionofgoodsorrenderingofservices,forrentaltoothers,orforadministrativepurposes,andexpectedtobeusedduringmorethanoneaccountingyear.Fixedassetsarerecognizedif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeassetswillflowtotheCompanyandthecostoftheassetscanbemeasuredreliably.
(2)DepreciationmethodofdifferentcategoriesoffixedassetsCategories
DepreciationmethodUsefullife(years)
Estimatedresidualvalueproportion(%)
Annualdepreciationrate
(%)BuildingsandstructuresStraight-linemethod20-300%,5%3.17%-5%Machineryandequipment
Straight-linemethod5-120%,5%7.92%-20%Measurementanalysisequipment
Straight-linemethod5-105%9.50%-19%VehicleStraight-linemethod5-80%,5%11.88%-20%Officeequipmentandothers
Straight-linemethod5-80%,5%11.88%-20%15.Constructioninprogress
1.Constructioninprogressisrecognizedif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompany,andthecostoftheitemcanbemeasuredreliably.Constructioninprogressismeasuredattheactualcostincurredtoreachitsdesignedusableconditions.
2.Constructioninprogressistransferredintofixedassetsatitsactualcostwhenitreachesthedesignedusableconditions.Whentheauditingoftheconstructioninprogresswasnotfinishedwhilereachingthedesignedusableconditions,itistransferredtofixedassetsusingestimatedvaluefirst,andthenadjustedaccordinglywhentheactualcostissettled,buttheaccumulateddepreciationisnottobeadjustedretrospectively.16.Borrowingcosts
WheretheborrowingcostsincurredtotheCompanycanbedirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalization,itiscapitalizedandincludedinthecostsofrelevantassets;otherborrowingcostsarerecognizedasexpensesonthebasisoftheactualamountincurred,andareincludedinprofitorloss.17.Intangibleassets
(1)Valuationmethod,servicelife,impairmenttest
Intangibleassetsincludelanduseright,landownership,applicationsoftware,patentrightandnon-patented
technologyetc.Theinitialmeasurementofintangibleassetsisbasedonitscost.Intangibleassetsareamortizedbythestraight-linemethodwithdetailsasfollows:
CategoriesAmortizationmethodAmortizationperiod(years)LanduserightsStraight-linemethodContractualservicelifeIntellectualPropertyofAirConditioningControllerStraight-linemethod5—10PatentedtechnologyofelectronicexpansionvalvecontrollerofDotech
Straight-linemethod
ApplicationsoftwareStraight-linemethod1—4Intangibleassetswithindefiniteusefullifearenotamortized,buttheirusefullifeisreviewedannually.Theindefinitelandownershipheldbyoverseassubsidiariesabroadisnotamortizedduetouncertainservicelife.
(2)AccountingpolicyforinternalR&Dexpenditure
Expendituresontheresearchphaseofaninternalprojectarerecognizedasprofitorlosswhenitisincurred.AnintangibleassetarisingfromthedevelopmentphaseofaninternalprojectisrecognizediftheCompanycanmeetthecorrespondingconditions.18.Impairmentofpartoflong-termassetsLong-termassets,suchaslong-termequityinvestment,investmentproperties,fixedassets,constructioninprogress,intangibleassetsthatmeasuredatcostaretestedforimpairmentifthereisanyindicationthatanassetmaybeimpairedatthebalancesheetdate.Impairmenttesttogoodwillandtheintangibleassetswhoseusinglifeisnotcertainshallbecarriedoutatleastattheendofeachyear.Goodwillshallbetestedforimpairmentincombinationwithitsrelatedassetgrouporcombinationofassetgroups.Iftherecoverableamountoftheaforementionedlong-termassetsislowerthanitsbookvalue,theassetimpairmentprovisionshallberecognizedaccordingtothedifferenceandincludedinthecurrentprofitandloss.19.Long-termprepayments
Long-termprepaymentsareexpensesthathavebeenrecognizedbutwithamortizationperiodoveroneyear(excludingoneyear).Theyarerecordedwithactualcost,andevenlyamortizedwithinthebeneficiaryperiodorstipulatedperiod.Ifitemsoflong-termprepaymentsfailtobebeneficialtothefollowingaccountingperiods,residualvaluesofsuchitemsareincludedinprofitorloss.20.Employeebenefits
(1)Short-termemployeebenefits
1.Employeebenefitsincludesshort-termemployeebenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefits.
2.TheCompanyrecognizes,intheaccountingperiodinwhichanemployeeprovidesservice,short-termemployeebenefitsactuallyincurredasliabilities,withacorrespondingchargetoprofitorlossorthecostofarelevantasset.
(2)Post-employmentbenefits
TheCompanyclassifiespost-employmentbenefitplansaseitherdefinedcontributionplansordefinedbenefitplans.TheCompanyrecognizesintheaccountingperiodinwhichanemployeeprovidesservicethecontributionpayabletoadefinedcontributionplanasaliability,withacorrespondingchargetoprofitorlossorthecostofarelevantasset.
(3)Terminationbenefits
Terminationbenefitsprovidedtoemployeesarerecognizedasanemployeebenefitliabilityforterminationbenefits,withacorrespondingchargetoprofitorlossattheearlierofthefollowingdates:a.whentheCompanycannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemploymentterminationplanoracurtailmentproposal;orb.whentheCompanyrecognizescostorexpensesrelatedtoarestructuringthatinvolvesthepaymentofterminationbenefits.
(4)Otherlong-termemployeebenefits
Whenotherlong-termemployeebenefitsprovidedtotheemployeessatisfiedtheconditionsforclassifyingasadefinedcontributionplan,thosebenefitsareaccountedforinaccordancewiththerequirementsrelatingtodefinedcontributionplan,whileotherbenefitsareaccountedforinaccordancewiththerequirementsrelatingtodefinedbenefitplan.Tosimplifytherelevantaccountingtreatment,theCompanyrecognizesthecostofemployeebenefitsarisingfromotherlong-termemployeebenefitsasservicecost.Netinterestonthenetliabilityornetassetsofotherlong-termemployeebenefitsandchangesasaresultofremeasurementofthenetliabilityornetassetsofotherlong-termemployeebenefits.Thenettotaloftheaforesaidamountsisrecognizedinprofitorlossorincludedinthecostofarelevantasset.21.Provisions
1.Provisionsarerecognizedwhenfulfillingthepresentobligationsarisingfromcontingenciessuchasprovidingguaranteeforotherparties,litigation,productsqualityguarantee,onerouscontract,etc.,maycausetheoutflowoftheeconomicbenefitandsuchobligationscanbereliablymeasured.
2.Theinitialmeasurementofprovisionsisbasedonthebestestimatedexpendituresrequiredinfulfillingthepresentobligations,anditscarryingamountisreviewedatthebalancesheetdate.22.Share-basedpayment
1.Typesofshare-basedpayment
Share-basedpaymentconsistsofequity-settledshare-basedpaymentandcash-settledshare-basedpayment.
2.Accountingtreatmentforsettlements,modificationsandcancellationsofshare-basedpaymenttermsandconditions
(1)Equity-settledshare-basedpayment
Forequity-settledshare-basedpaymenttransactionwithemployees,iftheequityinstrumentsgrantedvestimmediately,thefairvalueofthoseequityinstrumentsismeasuredatgrantdateandrecognizedastransactioncostorexpense,withacorrespondingadjustmentincapitalreserve;iftheequityinstrumentsgranteddonotvestuntilthecounterpartycompletesaspecifiedperiodofservice,atthebalancesheetdatewithinthevestingperiod,
thefairvalueofthoseequityinstrumentsmeasuredatgrantdatebasedonthebestestimateofthenumberofequityinstrumentsexpectedtovestisrecognizedastransactioncostorexpense,withacorrespondingadjustmentincapitalreserve.Forequity-settledshare-basedpaymenttransactionwithpartiesotherthanemployees,ifthefairvalueofthegoodsorservicesreceivedcanbemeasuredreliably,thefairvalueismeasuredatthedatetheCompanyobtainsthegoodsorthecounterpartyrendersservice;ifthefairvalueofthegoodsorservicesreceivedcannotbemeasuredreliably,thefairvalueoftheequityinstrumentsgrantedmeasuredatthedatetheCompanyobtainsthegoodsorthecounterpartyrendersserviceisreferredto,andrecognizedastransactioncostorexpense,withacorrespondingincreaseinequity.
(2)Cash-settledshare-basedpayment
Forcash-settledshare-basedpaymenttransactionswithemployees,ifshareappreciationrightsvestimmediately,thefairvalueoftheliabilityincurredastheacquisitionofgoodsorservicesismeasuredatgrantdateandrecognizedastransactioncostorexpense,withacorrespondingincreaseinliabilities;ifshareappreciationrightsdonotvestuntiltheemployeeshavecompletedaspecifiedperiodofservice,theliabilityismeasured,ateachbalancesheetdateuntilsettled,atthefairvalueoftheshareappreciationrightsmeasuredatgrantdatebasedonthebestestimateofthenumberofshareappreciationrightexpectedtovest.
(3)Modificationsandcancellationsofshare-basedpaymenttermsandconditions
Ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,measuredimmediatelybeforeandafterthemodification,theCompanyincludestheincrementalfairvaluegrantedinthemeasurementoftheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsgranted;similarly,ifthemodificationincreasesthenumberofequityinstrumentsgranted,theCompanyincludesthefairvalueoftheadditionalequityinstrumentsgranted,measuredatthedateofthemodification,inthemeasurementoftheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsgranted;iftheCompanymodifiesthevestingconditionsinamannerthatisbeneficialtotheemployee,theCompanytakesthemodifiedvestingconditionsintoaccount.
Ifthemodificationreducesthefairvalueoftheequityinstrumentsgranted,measuredimmediatelybeforeandafterthemodification,theCompanydoesnottakeintoaccountthatdecreaseinfairvalueandcontinuetomeasuretheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsbasedonthegrantdatefairvalueoftheequityinstrumentsgranted;ifthemodificationreducesthenumberofequityinstrumentsgrantedtoanemployee,thatreductionisaccountedforasacancellationofthatportionofthegrant;iftheCompanymodifiesthevestingconditionsinamannerthatisnotbeneficialtotheemployee,theCompanydoesnottakethemodifiedvestingconditionsintoaccount.
IftheCompanycancelsorsettlesagrantofequityinstrumentsduringthevestingperiod(otherthanagrantcancelledbyforfeiturewhenthevestingconditionsarenotsatisfied),theCompanyaccountsforthecancellationorsettlementasanaccelerationofvesting,andthereforerecognizesimmediatelytheamountthatotherwisewouldhavebeenrecognizedforservicesreceivedovertheremainderofthevestingperiod.23.RevenueAccountingpoliciesusedinrevenuerecognitionandmeasurement
1.Revenuerecognitionprinciples
Atcontractinception,theCompanyshallassessthecontractsandshallidentifyeachperformanceobligationinthecontracts,anddeterminewhethertheperformanceobligationshouldbesatisfiedovertimeoratapointintime.
TheCompanysatisfiesaperformanceobligationovertimeifoneofthefollowingcriteriaismet,otherwise,theperformanceobligationissatisfiedatapointintime:(1)thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheCompany’sperformanceastheCompanyperforms;(2)thecustomercancontrolgoodsorservicesastheyarecreatedbytheCompany’sperformance;(3)theCompany’sperformancedoesnotcreategoodsorserviceswithanalternativeusesandtheCompanyhasanenforceablerighttopaymentforperformancecompletedtodate.Foreachperformanceobligationsatisfiedovertime,theCompanyshallrecognizerevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation.Inthecircumstancethattheprogresscannotbemeasuredreasonably,butthecostsincurredinsatisfyingtheperformanceobligationareexpectedtoberecovered,theCompanyshallrecognizerevenueonlytotheextentofthecostsincurreduntilitcanreasonablymeasuretheprogress.Todeterminewhetherthecustomerhasobtainedcontrolofgoods,theCompanyshallconsiderthefollowingindicators:(1)theCompanyhasapresentrighttopaymentforthegoods,i.e.,thecustomerispresentlyobligedtopayforthegoods;(2)theCompanyhastransferredthelegaltitleofthegoodstothecustomer,i.e.,thecustomerhaslegaltitletothegoods;(3)theCompanyhastransferredphysicalpossessionofthegoods,i.e.,thecustomerhasphysicallypossessedthegoods;(4)theCompanyhastransferredsignificantrisksandrewardsofownershipofthegoods,i.e.,thecustomerhasobtainedsignificantrisksandrewardsofownershipofthegoods;(5)thecustomerhasacceptedthegoods;(6)otherindicatorsshowingthecustomerhasobtainedcontroloverthegoods.
2.Revenuemeasurementprinciple
(1)Revenueismeasuredattheamountofthetransactionpricethatisallocatedtoeachperformanceobligation.ThetransactionpriceistheamountofconsiderationtowhichtheCompanyexpectstobeentitledinexchangefortransferringgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdpartiesandthoseexpectedtoberefundedtothecustomer.
(2)Iftheconsiderationpromisedinacontractincludesavariableamount,theCompanyshallconfirmthebestestimateofvariableconsiderationatexpectedvalueorthemostlikelyamount.However,thetransactionpricethatincludestheamountofvariableconsiderationonlytotheextentthatitishighprobablethatasignificantreversalintheamountofcumulativerevenuerecognizedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.
(3)Inthecircumstancethatthecontractcontainsasignificantfinancingcomponent,theCompanyshalldeterminethetransactionpricebasedonthepricethatacustomerwouldhavepaidforifthecustomerhadpaidcashforobtainingcontroloverthosegoodsorservices.Thedifferencebetweenthetransactionpriceandtheamountofpromisedconsiderationisamortizedundereffectiveinterestmethodovercontractualperiod.
(4)Forcontractscontainingtwoormoreperformanceobligations,theCompanyshalldeterminethestand-alonesellingpriceatcontractinceptionofthedistinctgoodunderlyingeachperformanceobligationandallocatethetransactionpricetoeachperformanceobligationonarelativestand-alonesellingpricebasis.
3.Revenuerecognitionmethod
(1)TheCompanymainlysellscontrolcomponentsandpartsforhouseholdappliancesandautomobileairconditioners.Duetocontinuousbatchsupply,productsalesrevenueisconfirmedafterdeliveryinspectionandreceiptofpaymentreceipts.Exportsalesrevenueisrecognizedaftercustomsdeclarationandexportandobtainingthebilloflading.
(2)Recognitionofincomefromthesaleofscrapmetalafterweighingandtakingdeliveryandobtainingreceipts.Differencesinrevenuerecognitionaccountingpoliciescausedbydifferentbusinessmodelsofsimilarbusinesses
24.Governmentgrants
1.Governmentgrantsshallberecognizedif,andonlyif,thefollowingconditionsareallmet:(1)theCompanywillcomplywiththeconditionsattachingtothegrants;(2)thegrantswillbereceived.Monetarygovernmentgrantsaremeasuredattheamountreceivedorreceivable.Non-monetarygovernmentgrantsaremeasuredatfairvalue,andcanbemeasuredatnominalamountinthecircumstancethatfairvaluecan’tbeassessed.
2.Governmentgrantsrelatedtoassets
GovernmentgrantsrelatedtoassetsaregovernmentgrantswithwhichtheCompanyconstructorotherwiseacquirelong-termassetsunderrequirementsofgovernment.Inthecircumstancesthatthereisnospecificgovernmentrequirement,theCompanyshalldeterminebasedontheprimaryconditiontoacquirethegrantsandgovernmentgrantsrelatedtoassetsaregovernmentgrantswhoseprimaryconditionistoconstructorotherwiseacquirelong-termassets.Theyoffsetcarryingamountofrelevantassetsorrecognizedasdeferredincome.Ifrecognizedasdeferredincome,theyareincludedinprofitorlossonasystematicbasisovertheusefullivesoftherelevantassets.Thosemeasuredatnotionalamountisdirectlyincludedintoprofitorloss.Forassetssold,transferred,disposedordamagedwithintheusefullives,balanceofunamortizeddeferredincomeistransferredintoprofitorlossoftheyearinwhichthedisposaloccurred.
3.Governmentgrantsrelatedtoincome
Governmentgrantsrelatedtoincomearegovernmentgrantsotherthanthoserelatedtoassets.Forgovernmentgrantsthatcontainbothpartsrelatedtoassetsandpartsrelatedtoincome,inwhichthosetwopartsareblurredandthuscollectivelyclassifiedasgovernmentgrantsrelatedtoincome.Forgovernmentgrantsrelatedtoincomeusedforcompensatingtherelatedfuturecost,expensesorlossesoftheCompanyarerecognizedasdeferredincomeandareincludedinprofitorlossoroffsetrelevantcostduringtheperiodinwhichtherelevantcost,expensesorlossesarerecognized;forgovernmentgrantsrelatedtoincomeusedforcompensatingtherelatedcost,expensesorlossesincurredtotheCompany,theyaredirectlyincludedinprofitorlossordirectlyoffsetrelevantcost.
4.Governmentgrantsrelatedtotheordinarycourseofbusinessshallbeincludedintootherincomeoroffsetrelevantcostbasedonbusinessnature,whilethosenotrelatedtotheordinarycourseofbusinessshallbeincludedintonon-operatingrevenueorexpenditures.25.Deferredtaxassets/Deferredtaxliabilities
1.Deferredtaxassetsordeferredtaxliabilitiesarecalculatedandrecognizedbasedonthedifferencebetweenthecarryingamountandtaxbaseofassetsandliabilities(andthedifferenceofthecarryingamountandtaxbaseofitemsnotrecognizedasassetsandliabilitiesbutwiththeirtaxbasebeingabletobedeterminedaccordingtotaxlaws)andinaccordancewiththetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobesettled.
2.Adeferredtaxassetisrecognizedtotheextentoftheamountofthetaxableincome,whichitismostlikelytoobtainandwhichcanbedeductedfromthedeductibletemporarydifference.Atthebalancesheetdate,ifthereisanyexactevidencethatitisprobablethatfuturetaxableincomewillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilized,thedeferredtaxassetsunrecognizedinpriorperiodsarerecognized.
3.Atthebalancesheetdate,thecarryingamountofdeferredtaxassetsisreviewed.Thecarryingamountofadeferredtaxassetisreducedtotheextentthatitisnolongerprobablethatsufficienttaxableincomewillbeavailabletoallowthebenefitofthedeferredtaxassettobeutilized.Suchreductionissubsequentlyreversedto
theextentthatitbecomesprobablethatsufficienttaxableincomewillbeavailable.
4.Theincometaxanddeferredtaxfortheperiodaretreatedasincometaxexpensesorincomethroughprofitorloss,excludingthosearisingfromthefollowingcircumstances:(a)businesscombination;and(b)thetransactionsoritemsdirectlyrecognizedinequity.26.Leases
1.Identificationofalease
Atinceptionofacontract,theCompanyassesseswhetherthecontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftime,theCompanyassesseswhether,throughouttheperiodofuse,thecustomerhasbothofthefollowing:(a)therighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseoftheidentifiedasset;and(b)therighttodirecttheuseoftheidentifiedasset.
2.Identificationofseparateleases
Foracontractthatcontainsmorethanoneleasecomponent,theCompanyseparatesthecomponentsandaccountsforeachleasecomponentseparately.Therighttouseanunderlyingassetisaseparateleasecomponentifboth:(a)thelesseecanbenefitfromuseoftheunderlyingasseteitheronitsownortogetherwithotherresourcesthatarereadilyavailabletothelessee;and(b)theunderlyingassetisneitherhighlydependenton,norhighlyinterrelatedwith,theotherunderlyingassetsinthecontract.
3.AccountingtreatmentsfortheCompanyaslessee
Atthecommencementdate,theCompanyrecognizesaleasethathasaleasetermof12monthsorlessasashort-termlease,whichshallnotcontainapurchaseoption;theCompanyrecognizesaleaseasaleaseofalow-valueassetiftheunderlyingassetisoflowvaluewhenitisnew.IftheCompanysubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.
Forallshort-termleasesandleasesoflow-valueassets,leasepaymentsarerecognizedascostorprofitorlosswithstraight-linemethod/unit-of-productionmethodovertheleaseterm.(Reminder:Forshort-termleases,choosetheaccountingpolicyaccordingtothetypeofleasedasset,andforlow-valueleases,choosetheaccountingpolicyforeachlease.Pleasemodifyitaccordingtotheactualsituation.)
Apartfromtheabove-mentionedshort-termleasesandleasesoflow-valueassetswithsimplifiedapproach,theCompanyrecognizesright-of-useassetsandleaseliabilitiesatthecommencementdate.
Atthecommencementdate,theCompanymeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate,discountedusingtheinterestrateimplicitinthelease.Ifthatratecannotbereadilydetermined,theCompany’sincrementalborrowingrateshallbeused.Unrecognizedfinancingexpenses,calculatedatthedifferencebetweentheleasepaymentanditspresentvalue,arerecognizedasinterestexpensesovertheleasetermusingthediscountratewhichhasbeenusedtodeterminethepresentvalueofleasepaymentandincludedinprofitorloss.Variableleasepaymentsnotincludedinthemeasurementofleaseliabilitiesareincludedinprofitorlossintheperiodsinwhichtheyareincurred.
Afterthecommencementdate,ifthereisachangeinthefollowingitems:(a)actualfixedpayments;(b)amountsexpectedtobepayableunderresidualvalueguarantees;(c)anindexorarateusedtodetermineleasepayments;(d)assessmentresultorexerciseofpurchaseoption,extensionoptionorterminationoption,theCompanyremeasurestheleaseliabilitybasedonthepresentvalueofleasepaymentsafterchanges.
4.AccountingtreatmentsforleasemodificationsinwhichtheCompanyaslessee
(1)Aleasemodificationasaseparatelease
TheCompanyaccountsforaleasemodificationasaseparateleaseifboth:(a)themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;and(b)theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alonepricefortheincreaseinscope.
(2)Aleasemodificationnotasaseparatelease
Attheeffectivedateoftheleasemodification,theCompanyredeterminestheleasetermofthemodifiedleaseandremeasurestheleaseliabilitybydiscountingtherevisedleasepaymentusingareviseddiscountrate.Thereviseddiscountrateisdeterminedastheinterestrateimplicitintheleasefortheremainderoftheleaseterm;iftheinterestrateimplicitintheleasecannotbereadilydetermined,thereviseddiscountrateisdeterminedastheCompany’sincrementalborrowingrateattheeffectivedateofthemodification.
TheCompanyaccountsfortheremeasurementoftheleaseliabilityby:
1)Decreasingthecarryingamountoftheright-of-useassettoreflectthepartialorfullterminationoftheleaseforleasemodificationsthatdecreasethescopeofthelease.TheCompanyrecognizesinprofitorlossanygainorlossrelatingtothepartialorfullterminationofthelease.
2)Makingacorrespondingadjustmenttocarryingamountoftheright-of-useassetforallotherleasemodifications.
5.AccountingtreatmentsfortheCompanyaslessor
Atthecommencementdate,theCompanyclassifiesaleaseasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingasset.Otherwise,itisclassifiedasanoperatinglease.
(1)Operatinglease
Leasereceiptsarerecognizedasleaseincomewithstraight-linemethodovertheleaseterm.Initialdirectcostsincurredshallbecapitalized,amortizedonthesamebasisastherecognitionofleaseincome,andincludedintoprofitorlossbyinstallments.Variableleasepaymentsrelatedtooperatingleasewhicharenotincludedintheleasepaymentarechargedasprofitorlossintheperiodsinwhichtheyareincurred.
(2)Financelease
Atthecommencementdate,theCompanyrecognizesthefinanceleasepaymentreceivablebasedonthenetinvestmentinthelease(sumofthepresentvalueofunguaranteedresidualvalueandleasereceiptsthatarenotreceivedatthecommencementdate,discountedbytheinterestrateimplicitinthelease),andderecognizesassetsheldunderthefinancelease.TheCompanycalculatesandrecognizesinterestincomeusingtheinterestrateimplicitintheleaseovertheleaseterm.
Variableleasepaymentsnotincludedinthemeasurementofthenetinvestmentintheleasearechargedasprofitorlossintheperiodsinwhichtheyareincurred.
6.AccountingtreatmentsforleasemodificationsinwhichtheCompanyaslessor
(1)Operatinglease
TheCompanyaccountsforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyprepaidoraccruedleasepaymentsrelatingtotheoriginalleaseaspartoftheleasepaymentsforthenewlease.
(2)Financelease
1)Aleasemodificationasaseparatelease
TheCompanyaccountsforaleasemodificationasaseparateleaseifboth:(a)themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;and(b)theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alonepricefortheincreaseinscope.
2)Aleasemodificationnotasaseparatelease
Iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeenineffectattheinceptiondate,theCompanyaccountsfortheleasemodificationasanewleasefromtheeffectivedateofthemodification,andmeasuresthecarryingamountoftheunderlyingassetasthenetinvestmentintheleaseimmediatelybeforetheeffectivedateoftheleasemodification.Otherwise,theCompanyappliesregulationsinthe“CASBE22–FinancialInstruments:RecognitionandMeasurement”regardingthemodificationorrenegotiationofcontracts.27.OthersignificantaccountingpoliciesandestimatesSegmentreportingReportablesegmentsareidentifiedbasedonoperatingsegmentswhicharedeterminedbasedonthestructureoftheCompany’sinternalorganization,managementrequirementsandinternalreportingsystem.AnoperatingsegmentisacomponentoftheCompanythat:
1.Engagesinbusinessactivitiesfromwhichitmayearnrevenuesandincurexpenses;
2.WhosefinancialperformanceareregularlyreviewedbyManagementtomakedecisionsaboutresourcetobeallocatedtothesegmentandassessitsperformance;and
3.Forwhichfinancialinformationregardingfinancialposition,financialperformanceandcashflowsisavailable.
28.Changesinsignificantaccountingpoliciesandaccountingestimates
(1)Changesinsignificantaccountingpolicies
√Applicable□Notapplicable
TheCompanyhasadopted“CASBE21-Leases”revisedbyMinistryofFinanceofPRCsinceJanuary1,2021.
(2)Since2021,adjustmentstotherelevantitemsoffinancialstatementsatthebeginningoftheyearatthefirstimplementationofleasestandards.ApplicableWhetheritisnecessarytoadjustthebalancesheetaccountsatthebeginningoftheyear
□Yes√No
Ⅵ.Taxes
1.Majorcategoriesoftaxesandtaxrates
TaxTypeTaxationbasisTaxrateVAT
Theoutputtaxcalculatedbasedontherevenuefromsalesofgoodsorrenderingofservicesinaccordancewiththetaxlaw,netoftheinputtaxthatisallowedtobedeductedinthecurrentperiod
13%UrbanmaintenanceandconstructiontaxThesumofturnovertaxpayableandvalue-addedtaxexemption5%,7%
EnterpriseincometaxTaxableincome15%,25%Differententerpriseincometaxratesapplicabletodifferenttaxpayers:
TaxpayersIncometaxrateZhejiangSanhuaIntelligentControlsCo.,Ltd15%ZhejiangSanhuaClimateandApplianceControlsGroupCo.,Ltd15%WuhuSanhuaAuto-controlComponentsCo.,Ltd15%ZhejiangSanhuaAutomotiveComponentsCo.,Ltd.15%Sanhua(hangzhou)MicroChannelHeatExchangerCo.,Ltd15%HangzhouLeaderwayElectronicsCo.Ltd15%ZhuhaiHengtuElectronicsCo.,Ltd.15%WuhuSanhuaRefrigerationFittingsCo.Ltd15%Sanhua(Jiangxi)Self-controlComponentsCo.,Ltd.15%WuhanSanhuaRefrigerationPartsCo.,Ltd15%SanhuaAWECOApplianceSystems(Wuhu)Co.,Ltd.15%Domestictaxpayersotherthantheabove-mentioned25%
2.Taxpreferentialpolicies
1.EnterpriseincometaxBeingcategorizedashigh-techenterprises,theincometaxoftheCompanyandseveralsubsidiariesfor2021aretemporarilycalculatedatapreferentialtaxrateof15%,andthefinalincometaxsettlementshallprevail.2.Value-addedtaxSeveralsubsidiariesarewelfareenterprisesandcanenjoythepreferentialpolicyof"VATrefund".Theexceedingportionoverthe3%VATpayableofthecertifiedsoftwareproductsenjoytheimmediaterefundpolicy.ExportgoodsenjoytheVATexemptionandrefundpolicy.
3.Others
Theoverseassubsidiaryshallbesubjecttothetaxregulationsofitshostcountry.Ⅶ.NotestoItemsintheConsolidatedFinancialStatements
1.Cashandbankbalances
Unit:RMBItemsClosingbalanceOpeningbalanceCashonhand327,111.73232,265.51Cashinbank6,205,720,660.693,411,034,773.03Othercashandbankbalances95,840,410.2378,420,529.60
Total6,301,888,182.653,489,687,568.14Including:Depositedoverseas283,016,150.48370,754,548.72Thetotalamountofthecashandbankbalancesthatarelimitedbymortgage,pledgeorfreeze
106,963,410.2389,543,529.60
2.Held-for-tradingfinancialassets
Unit:RMBItemsClosingbalanceOpeningbalanceFinancialassetsatfairvaluethroughprofitorloss
189,524,312.14752,224,861.78Including:
Bankfinancialproducts189,524,312.14752,224,861.78Including:
Total189,524,312.14752,224,861.78
3.DerivativeFinancialAssets
Unit:RMBItemsClosingbalanceOpeningbalanceForeignexchangetool20,863,496.9649,339,961.11Futurestools5,529,209.668,990,525.42
Total26,392,706.6258,330,486.53
4.Notesreceivable
(1)Categoriesofnotesreceivable
Unit:RMBItemsClosingbalanceOpeningbalanceBankacceptance1,718,559,685.302,190,368,328.70Tradeacceptance300,871,907.43133,566,452.83
Total2,019,431,592.732,323,934,781.53
Unit:RMB
Categories
ClosingbalanceOpeningbalanceBookbalance
Provisionforbaddebt
Carryingamount
BookbalanceProvisionforbaddebt
CarryingamountAmount
ProportionAmount
Provisionproportion
AmountProportio
n
AmountProvision
proportionIncluding:
Notesreceivablewithprovisionforbaddebtmadeonacollectivebasis
2,035,266,956.28
100.00%
15,835,3
63.55
0.78%
2,019,431,592.73
2,330,964,594.83
100.00%
7,029,813.3
0.30%
2,323,934,781.53Including:
Bankacceptance
1,718,559,685.30
84.44%
1,718,559,685.30
2,190,368,328.70
93.97%
2,190,368,328.70Tradeacceptance
316,707,
270.98
15.56%
15,835,3
63.55
5.00%
300,871,9
07.43
140,596,2
66.13
6.03%
7,029,813.3
5.00%
133,566,4
52.83
Total
2,035,266,956.28
100.00%
15,835,3
63.55
0.78%
2,019,431,592.73
2,330,964,594.83
100.00%
7,029,813.3
0.30%
2,323,934,781.53Provisionforbaddebtmadeonacollectivebasis:
Unit:RMBItemsClosingbalance
BookbalanceProvisionforbaddebtProvisionproportion(%)Bankacceptanceportfolio1,718,559,685.30Tradeacceptanceportfolio316,707,270.9815,835,363.555.00%Total2,035,266,956.2815,835,363.55--Iftheprovisionforbaddebtofnotesreceivableisinaccordancewiththegeneralexpectedcreditlossmodel,pleaserefertothedisclosureofthebaddebtprovisionforotherreceivables:
□Applicable√NotApplicable
(2)Provisionforbaddebtaccrued,recoveredorreversedincurrentperiodProvisionforbaddebtaccruedincurrentperiod:
Unit:RMBCategoriesOpeningbalance
Changedamountofthisperiod
ClosingbalanceAccrual
Recoveredor
reversed
WriteoffOthersTradeacceptance7,029,813.308,805,550.2515,835,363.55
Total7,029,813.308,805,550.2515,835,363.55
Includingsignificantprovisionforbaddebtrecoveredorreversedamount:
□Applicable√NotApplicable
(3)Pledgednotesatthebalancesheetdate
Unit:RMBItemsClosingbalanceofpledgednotesBankacceptance1,579,929,231.31Total1,579,929,231.31
(4)Endorsedordiscountedbutunduenotesatthebalancesheetdate
Unit:RMBItemsClosingbalancederecognizedClosingbalancenotyetderecognizedBankacceptance72,862,252.02Tradeacceptance202,271,622.3323,201,547.82Total275,133,874.3523,201,547.82
5.Accountsreceivable
(1)Disclosureofaccountsreceivablebycategories
Unit:RMB
Categories
ClosingbalanceOpeningbalanceBookbalance
Provisionforbad
debt
Carryingamount
Bookbalance
Provisionforbaddebt
CarryingamountAmountProportio
n
AmountAccrued
proportion
AmountProportio
n
AmountAccrued
proportionReceivableswithprovisionmadeonanindividualbasis
57,335.2
0.00%
57,335.2
100.00%0.0057,335.280.00%57,335.28100.00%0.00Including:
Receivableswithprovisionmadeonacollectivebasis
3,264,621,824.66
100.00%
163,764,
922.03
5.02%
3,100,856,902.63
2,481,072,027.67
100.00%
125,458,7
28.10
5.06%
2,355,613,2
99.57
Including:
Total
3,264,679,159.94
100.00%
163,822,
257.31
5.02%
3,100,856,902.63
2,481,129,362.95
100.00%
125,516,0
63.38
5.06%
2,355,613,2
99.57
Provisionmadeonanindividualbasis:
Unit:RMBDebtors
ClosingbalanceBookbalanceProvisionforbaddebtsAccruedproportionReasonsMAHLEBEHRMEXICOS.DER.L.DE.C.V.57,335.2857,335.28100.00%Total57,335.2857,335.28----Provisionmadeonacollectivebasis:aging
Unit:RMBItems
ClosingbalanceBookbalanceProvisionforbaddebtAccruedproportionWithin1year3,261,150,680.57163,057,534.045.00%1to2years2,154,196.08215,419.6110.00%2to3years832,528.12249,758.4330.00%Over3years484,419.89242,209.9550.00%Total3,264,621,824.66163,764,922.03--Iftheprovisionforbaddebtofaccountsreceivableisinaccordancewiththegeneralexpectedcreditlossmodel,pleaserefertothedisclosureofbaddebtprovisionforotherreceivables:
□Applicable√NotApplicable
Disclosurebyaging
Unit:RMBAgingClosingbalanceWithin1year(including1year)3,261,150,680.571to2years2,154,196.082to3years832,528.12Over3years541,755.17Total3,264,679,159.94
(2)Provisionforbaddebtaccrued,recoveredorreversedincurrentperiod
Provisionforbaddebtaccruedincurrentperiod:
Unit:RMBCategoriesOpeningbalance
Changedamountofthecurrentperiod
ClosingbalanceAccrued
Recoveredorreversed
WriteoffOthersReceivableswithprovisionmadeonanindividualbasis
57,335.2857,335.28Receivableswithprovision125,458,728.1039,398,806.271,092,612.34163,764,922.03
madeonacollectivebasisTotal125,516,063.3839,398,806.271,092,612.34163,822,257.31
(3)Actualwrite-offofaccountsreceivableincurrentperiod
Unit:RMBItemsWrite-offamountSmallsporadicaccountsreceivable1,092,612.34
(4)Top5debtorswiththelargestaccountsreceivablebalances
Unit:RMBDebtorsClosingbalance
Proportiontothetotalbalanceof
accountsreceivable
Provisionforbaddebtattheend
oftheperiodTop5debtorswiththelargestbalances
1,171,560,371.6135.89%58,578,018.58Total1,171,560,371.6135.89%
6.Advancespaid
(1)Advancespaidbyaging
Unit:RMBAging
ClosingbalanceOpeningbalanceAmountPercentageAmountPercentageWithin1year97,728,785.4296.52%61,348,884.2088.39%1to2years2,502,832.592.47%6,712,609.399.67%2to3years350,677.150.35%64,117.700.09%Over3years668,758.920.66%1,278,715.161.84%Total101,251,054.08--69,404,326.45--
(2)Top5debtorswiththelargestadvancespaidbalances
Closingbalanceoftop5debtorstotaledRMB24,289,065.18,accountingfor23.99%ofthetotalclosingbalanceofadvancespaid.
7.Otherreceivables
Unit:RMBItemsClosingbalanceOpeningbalanceOtherreceivables98,155,207.5176,935,495.05Total98,155,207.5176,935,495.05
(1)Otherreceivables
1)Otherreceivablescategorizedbynature
Unit:RMBItemsClosingbalanceOpeningbalanceTaxrefundreceivable50,947,804.0236,628,075.87Guaranteedeposits32,226,145.1930,801,053.14Others17,412,718.5611,700,014.42Total100,586,667.7779,129,143.43
2)Provisionofbaddebt
Unit:RMBProvisionforbaddebt
PhaseIPhaseIIPhaseIII
Subtotal12?monthexpected
creditlosses
Lifetimeexpectedcreditlosses(creditnotimpaired)
Lifetimeexpectedcreditlosses(creditimpaired)BalanceonJanuary1,2021
856,410.481,337,237.902,193,648.38ThebalanceasofJanuary1,2021isinthecurrentperiod
————————Provisionmadeinthecurrentperiod
441,538.92441,538.92Provisionrecoveredincurrentperiod
203,727.04203,727.04BalanceonJune30,20211,297,949.401,133,510.862,431,460.26Lossprovisionsforsignificantchangesinbookbalancesincurrentperiod
□Applicable√NotApplicable
Disclosebyaging
Unit:RMBAgingClosingbalance
Within1year(including1year)1,297,949.401to2years126,719.582to3years278,342.70Over3years728,448.58Total2,431,460.26
3)Detailsofthetop5debtorswithlargestbalances
Unit:RMBItemsNatureofreceivablesClosingbalanceAges
Proportiontothetotalbalanceofotherreceivables
ProvisionforbaddebtattheendoftheperiodTaxrefundreceivablesTaxrefund50,947,804.02Within1year50.65%FinanceBureauofXinchangCounty
Performancebond6,971,285.001to4years6.93%ShaoxingBinhaiNewCityManagementCommittee
Performancebondforland
andprojectconstruction
5,410,000.003to4years5.38%XinchangCountyLandReserveDevelopmentCenter
Depositofconstructionprojects
3,774,000.005to8years3.75%WuhuYijiangDistrictFinanceBureau
Depositofconstructionprojects
3,751,000.003to4years3.73%Total--70,854,089.02--70.44%4)OtherreceivablesrelatedtoGovernmentgrants
Unit:RMBItemsGovernmentgrantClosingbalanceAges
Estimatedreceipttime,amountandbasisLocalfinanceandtaxationdepartments
VATrefundofcivilwelfareenterprises
1,735,806.82Within1year
FromJulytoOctober,2021,Taxrefundreturn
8.Inventories
WhethertheCompanyneedstocomplywiththedisclosurerequirementsoftherealestateindustryNo
(1)Categoriesofinventories
Unit:RMBItemsClosingbalanceOpeningbalance
Bookbalance
Provisionfordeclineinvalueofinventoriesorprovisionforimpairmentofcontractperformancecosts
CarryingamountBookbalanceBookbalance
ProvisionfordeclineinvalueofinventoriesorprovisionforimpairmentofcontractperformancecostsRawmaterials798,314,357.0339,409,438.41758,904,918.62530,578,235.3438,591,465.21491,986,770.13Work-in-progress267,306,340.68955,782.93266,350,557.75377,607,984.60661,948.94376,946,035.66Finishedgoods1,931,323,857.3246,652,663.721,884,671,193.601,488,998,382.8155,323,878.131,433,674,504.68Others7,877,177.937,877,177.935,154,395.995,154,395.99Total3,004,821,732.9687,017,885.062,917,803,847.902,402,338,998.7494,577,292.282,307,761,706.46
(2)ProvisionfordeclineinvalueofinventoriesandProvisionforimpairmentofcontractperformancecosts
Unit:RMBItemsOpeningbalance
IncreaseincurrentperiodDecreaseincurrentperiod
ClosingbalanceAccruedOthers
Reversalorwrite
off
OthersRawmaterials38,591,465.214,457,352.233,639,379.0339,409,438.41Work-in-progress661,948.94293,833.99955,782.93Finishedgoods55,323,878.1313,863,394.3322,534,608.7446,652,663.72Total94,577,292.2818,614,580.5526,173,987.7787,017,885.06Thedeterminationofthenetrealizablevalueoftheexcess&obsoleteinventoriesofmetalmaterialsattheendoftheperiodisthescrapmetalrecoveryprice.Thedeterminationofthenetrealizablevalueoftheexcess&obsoleteinventoriesofelectroniccomponentsisRMB0.
9.Othercurrentassets
Unit:RMBItemsClosingbalanceOpeningbalanceDeductibleinputtax67,017,753.97100,377,659.11PrepaidEnterpriseincometax63,363,501.0049,911,203.33Others1,313,092.07171,625.57Total131,694,347.04150,460,488.01
10.Long-termreceivable
(1)Long-termreceivable
Unit:RMBItems
ClosingbalanceOpeningbalance
RangeofdiscountrateBookbalance
Provisionforbaddebt
Carryingamount
Bookbalance
Provisionfor
baddebt
CarryingamountEmployeehomeloan
2,295,085.002,295,085.002,074,750.002,074,750.00Total2,295,085.002,295,085.002,074,750.002,074,750.00--Impairmentofprovisionforbaddebt
Unit:RMBProvisionforbaddebt
PhaseIPhaseIIPhaseIII
Total12?monthexpected
creditlosses
Lifetimeexpectedcreditlosses(creditnotimpaired)
Lifetimeexpectedcreditlosses(creditimpaired)ThebalanceasofJanuary1,2021isinthecurrentperiod
————————Lossprovisionsforsignificantchangesinbookbalancesincurrentperiod
□Applicable√NotApplicable
11.Long-termequityinvestments
Unit:RMB
Investees
Openingbalance(Carryingamount)
Increase/decreaseincurrentperiod
Closingbalance(Carryingamount)
Closingbalance
ofprovision
forimpairme
nt
Investme
ntincreased
Investme
ntdecreased
Investmentincomerecognize
dunderequitymethod
Adjustmentinothercomprehe
nsiveincome
Changesinotherequity
Cashdividendsorprofitdeclared
todistributio
n
Provision
forimpairme
nt
Others
Ⅰ.JointventuresⅡ.AssociatesGuochuangEnergyInternetInnovationCenter
1,525,252
.76
15,260.42
1,540,513
.18
(Guangdong)Co.,Ltd.ChongqingTainuoMachineryCo.,Ltd.
9,396,904
.73
3,344,529
.44
1,500,000
.00
11,241,43
4.17
NanchangSanhuaJinlifengMachineryCo.,Ltd.
1,517,138.95
-1,763.92
1,515,375.03
NingboJinlifengMachineryCo.,Ltd.
1,062,209.18
345,870.3
1,408,079.54QingdaoSanhuaJinlifengMachineryCo.,Ltd.
0.000.00
ZhongshanXuanyiPipeManufacturingCo.,Ltd.
1,718,111.06
404,994.4
2,123,105.46
Xinchangzhejiangenergysanhuacomprehensiveenergyco.
0.000.00
Subtotal
15,219,61
6.68
4,108,890.70
1,500,000
.00
17,828,50
7.38
Total15,219,614,108,8901,500,00017,828,50
6.68.70.007.38Otherremarks:
QingdaoSanhuaJinlifengMachineryCo.,Ltd.hasbeeninsolvent,theequityinvestmenthasbeenreducedtozeroyuan;AsofJune30,2021,theCompanyhasnotpaidcapitalcontributiontoXinchangzhejiangenergysanhuacomprehensiveenergyco.LTD.
12.Investmentproperty
(1)Investmentpropertymeasuredbycostmethod
√Applicable□NotApplicable
Unit:RMBItemsBuildingsandstructures
LanduserightandOverseaslandownership
ConstructioninprogressTotalⅠ.OriginalCarryingamount
1.Openingbalance12,643,427.543,539,025.0016,182,452.54
2.Increaseincurrent
period
-403,290.39-149,410.80-552,701.19
(1)Acquisition
(2)Transferredinfrom
inventory\fixedassets\constructioninprogress
(3)Businesscombination
(4)Converteddifference
inForeignCurrencyStatements
-403,290.39-149,410.80-552,701.19
3.Decreaseincurrent
period
(1)Disposal
(2)Othertransferout
4.Closingbalance12,240,137.153,389,614.2015,629,751.35Ⅱ.Accumulateddepreciationandamortization
1.Openingbalance6,114,863.586,114,863.58
2.Increaseincurrent
period
116,711.23116,711.23
(1)Depreciationor
amortization
380,365.53380,365.53
(2)Converteddifference
inForeignCurrencyStatements
-263,654.30-263,654.30
3.Decreaseincurrent
period
(1)Disposal
(2)Othertransferout
4.Closingbalance6,231,574.816,231,574.81Ⅲ.Provisionforimpairment
1.Openingbalance
2.Increaseincurrent
period
(1)Accrual
3.Decreaseincurrent
period
(1)Disposal
(2)Othertransferout
4.Closingbalance
Ⅳ.Carryingamount
1.Closingbalance6,008,562.343,389,614.209,398,176.54
2.Openingbalance6,528,563.963,539,025.0010,067,588.96
13.Fixedassets
Unit:RMBItemsClosingbalanceOpeningbalanceFixedassets3,965,615,647.933,839,408,059.45Total3,965,615,647.933,839,408,059.45
(1)Fixedassets
Unit:RMB
Items
Buildingsand
structures
Machineryand
equipment
Measurement
analysisequipment
Transportation
vehicles
Officeandotherequipment
TotalⅠ.Originalbookvalue:
1.Opening
balance
2,335,750,475.013,639,249,906.77115,451,585.4240,354,179.00236,938,987.106,367,745,133.30
2.Increasein
currentperiod
-3,329,066.88331,090,911.947,942,035.572,097,563.136,744,983.38344,546,427.14
(1)Acquisition95,281,538.938,411,514.292,351,291.158,262,324.06114,306,668.43
(2)Transferredin
fromconstructioninprogress
5,563,254.51251,194,456.72256,757,711.23
(3)Business
combination
(4)Converted
differenceinForeign
-8,892,321.39-15,385,083.71-469,478.72-253,728.02-1,517,340.68-26,517,952.52
3.Decreasein
currentperiod
13,242,839.12462,910.27956,717.038,098,164.3522,760,630.77
(1)Disposalor
scrap
13,242,839.12462,910.27956,717.038,098,164.3522,760,630.77
4.Closingbalance2,332,421,408.133,957,097,979.59122,930,710.7241,495,025.10235,585,806.136,689,530,929.67Ⅱ.Accumulateddepreciation
1.Opening
balance
611,780,867.811,678,476,511.9040,099,350.8230,404,077.31163,881,935.332,524,642,743.17
2.Increasein
currentperiod
42,520,529.36151,621,285.505,646,196.601,633,711.358,077,616.47209,499,339.28
(1)Accrual44,929,601.97159,841,857.175,700,348.951,753,189.029,021,453.76221,246,450.87
(2)Converted
differenceinForeignCurrencyStatements
-2,409,072.61-8,220,571.67-54,152.35-119,477.67-943,837.29-11,747,111.59
3.Decreasein
currentperiod
9,017,193.54439,764.76954,046.093,510,127.0013,921,131.39
(1)Disposalor
scrap
9,017,193.54439,764.76954,046.093,510,127.0013,921,131.39
4.Closing
balance
654,301,397.171,821,080,603.8645,305,782.6631,083,742.57168,449,424.802,720,220,951.06Ⅲ.Provisionforimpairment
1.Opening
balance
3,694,330.683,694,330.68
2.Increasein
currentperiod
(1)Accrual
3.Decreasein
currentperiod
(1)Disposalor
scrap
4.Closingbalance3,694,330.683,694,330.68Ⅳ.Carryingamount
1.Closing
balance
1,678,120,010.962,132,323,045.0577,624,928.0610,411,282.5367,136,381.333,965,615,647.93
2.Opening
balance
1,723,969,607.201,957,079,064.1975,352,234.609,950,101.6973,057,051.773,839,408,059.45
(2)Fixedassetswithcertificateoftitlesbeingunsettled
Unit:RMBItemsCarryingamountReasonsforunsettlement13#factoryinMeizhuNorthdistrict74,188,222.31
Newassets,thecertificateoftitletobeprocesseduniformlyaftertheoverallcompletionFinishedgoodswarehouseinMeizhuNorthdistrict
20,742,454.16
Newassets,thecertificateoftitletobeprocesseduniformlyaftertheoverallcompletion14#factoryinMeizhuNorthdistrict23,819,727.63
Newassets,thecertificateoftitletobeprocesseduniformlyaftertheoverallcompletion15#factoryinMeizhuNorthdistrict58,312,098.92
Newassets,thecertificateoftitletobeprocesseduniformlyaftertheoverallcompletionShaoxingnewenergyplant(PhaseⅠ)146,061,271.52
Newassets,thecertificateoftitletobeprocesseduniformlyaftertheoverallcompletion
小计323,123,774.54
14.Constructioninprogress
Unit:RMBItemsClosingbalanceOpeningbalanceConstructioninprogress914,010,795.59628,730,529.07Total914,010,795.59628,730,529.07
(1)Detailsofconstructioninprogress
Unit:RMBItems
ClosingbalanceOpeningbalanceBookbalance
Provisionforimpairment
Carryingamount
BookbalanceProvisionfor
impairment
CarryingamountAnnualproductionof7.3millionsetsofnewenergyvehiclethermalmanagementsystemcomponentsproject
138,826,452.14138,826,452.14145,885,533.67145,885,533.67Annualproductionof12.7millionsetsofautomotiveairconditioningcontrolcomponentsproject
13,272,734.9813,272,734.98Annualproductionof11.5millionsetsofnewenergyautopartsproject
78,054,678.4978,054,678.4978,290,263.6078,290,263.60Annualproductionof1.5millionsetsofnewenergythermalmanagementcomponentsproject
168,660,657.79168,660,657.7988,939,186.1888,939,186.18Annualproductionof1millionsetsofnewenergyvehicleair-conditioningthermalsensorsproject
1,038,025.681,038,025.683,772,038.193,772,038.19Annualproductionof11millionsetsofhigh-efficiencyheatexchangercomponentsfornewenergyvehicles
25,437,837.8025,437,837.80Annualproductionof65millionsetsofcommercial
101,456,068.31101,456,068.3125,812,948.2525,812,948.25
refrigerationandairconditioningintelligentcontrolcomponentsconstructionprojectAnnualoutputof50.5millionsetsofhighefficiencyandenergysavingrefrigerationandairconditioningcontrolcomponentstechnologytransformationprojects
15,371,049.0515,371,049.0511,841,050.0011,841,050.00
Annualoutputof27.5milliontubingpartand10,000tonsofstainlesssteelpipeconstructionproject
38,692,424.6138,692,424.6120,961,098.2920,961,098.29Vietnamindustrialplantproject
97,028,569.5997,028,569.5980,569,043.2480,569,043.24Others236,172,297.15236,172,297.15172,659,367.65172,659,367.65Total914,010,795.59914,010,795.59628,730,529.07628,730,529.07
(2)Changesofsignificantconstructioninprogressincurrentperiod
Unit:RMB
ItemsBudget
Openingbalance
Increasedincurrentperiod
Transferred
tofixedassetsinthecurrentperiod
Otheramountsdecreasedincurrentperiod
Closingbalance
Accumulatedinvestmenttobudget(%)
Completio
npercentage(%)
Accumulatedamountofcapitalizedinterest
Including:
capitalizedinterestincurrentperiod
Capitalizatio
nrateforinterestincurrentperiod
FundsourceAnnualproductionof7.3millionsetsofnewenergyvehiclethermalmanagementsystemcomponentsproject
468,600,000.0
145,885,533.67148,210,461.30155,269,542.83138,826,452.14104.28%
RaisedfundsAnnualproductionof12.7millionsetsofautomotiveairconditioningcontrolcomponentsproject
215,000,000.0
13,329,200.1356,465.1513,272,734.9891.12%
RaisedfundsAnnualproductionof11.5millionsetsofnewenergyautopartsproject
528,800,000.0
78,290,263.6049,586,870.5249,822,455.6378,054,678.4987.00%
RaisedfundsAnnualproductionof1.5millionsetsofnewenergythermalmanagementcomponentsproject
500,000,000.0
88,939,186.18102,836,403.9223,114,932.31168,660,657.7938.41%OtherAnnualproductionof1millionsetsofnewenergyvehicleair-conditioningthermalsensorsproject
44,786,000.003,772,038.192,734,012.511,038,025.6845.81%Other
ZhejiangSanhua
Annualproductionof11millionsetsofhigh-efficiencyheatexchangercomponentsfornewenergyvehicles
760,000,000.0
25,437,837.8025,437,837.803.35%
Annualproductionof65millionsetsofcommercialrefrigerationandairconditioningintelligentcontrolcomponentsconstructionproject
1,780,550,000
.0025,812,948.2575,643,120.06101,456,068.317.01%
Annualoutputof50.5millionsetsofhighefficiencyandenergysavingrefrigerationandairconditioningcontrolcomponentstechnologytransformationprojects
785,570,000.0
11,841,050.0020,226,039.0516,696,040.0015,371,049.054.10%
Annualoutputof27.5milliontubingpartand10,000tonsofstainlesssteelpipeconstructionproject
409,420,000.0
20,961,098.2917,731,326.3238,692,424.619.45%
Vietnamindustrialplantproject
180,882,800.0
80,569,043.2416,459,526.3597,028,569.5952.14%Total
5,673,608,800
.00456,071,161.42469,460,785.45247,693,448.43677,838,498.44----
ZhejiangSanhua
15.IntangibleAssets
(1)Detailsofintangibleassets
ItemsLanduserightPatentright
Non-patenttechnology
Overseasland
ownership
Intellectualpropertyright
ofairconditionercontroller
Patent
Intelligenttechnology
electronic
technologyexpansion
expansioncontroller
Ⅰ.Originalbookvalue
1.Openingbalance552,419,787.6128,945,626.5142,150,175.56
controller6,634,364.80
2.Increasedincurrentperiod106,915,159.8335,839,547.38
(1)Acquisition107,284,800.0036,642,563.43
(2)Internalresearchand
development
(3)Businesscombination
(4)Converteddifferencein
Foreign
-369,640.17-803,016.05
3.Decreasedincurrentperiod
(1)Disposal
4.Closingbalance659,334,947.4464,785,173.8942,150,175.56
6,634,364.806,634,364.80
Ⅱ.Accumulatedamortization
1.Openingbalance99,284,584.15314,580.9625,152,312.84
6,634,364.801,216,300.14
2.Increasedincurrentperiod6,408,869.8884,765.911,947,508.82
(1)Accrual6,425,475.4992,303.331,947,508.82
ZhejiangSanhua
(2)Converteddifferencein
Foreign
-16,605.61-7,537.42
3.Decreasedincurrentperiod
(1)Disposal
4.Closingbalance105,693,454.03399,346.8727,099,821.66
Intelligent1,548,018.36
Ⅲ.Provisionforimpairment
1.Openingbalance3,862,456.71
2.Increasedincurrentperiod-38,358.78
(1)Accrual
(2)Converteddifferencein
Foreign
-38,358.78
3.Decreasedincurrentperiod
(1)Disposal
4.Closingbalance3,824,097.93Ⅳ.Carryingamount
1.Closingbalance553,641,493.4160,561,729.0915,050,353.90
1,548,018.365,086,346.44
2.Openingbalance453,135,203.4624,768,588.8416,997,862.72
5,086,346.445,418,064.66
Atthebalancesheetdate,intangibleassetsformedfrominternalR&Daccountfor0.00%oftotalclosingbalanceofintangibleassets.
16.Goodwill
(1)OriginalCarryingamountofgoodwill
Unit:RMBInvesteeoreventsresultingingoodwill
Openingbalance
IncreasedincurrentperiodDecreasedincurrentperiod
ClosingbalanceDuetobusiness
combination
DisposalR-SquaredPuckettInc.
31,959,091.6031,959,091.60Total31,959,091.6031,959,091.60
17.Long-termprepayments
Unit:RMBItemsOpeningbalance
Increasedincurrentperiod
AmortizationOtherdecreasesClosingbalancePlantrenovationexpenditure
23,706,401.617,076,194.304,642,412.2326,140,183.68Total23,706,401.617,076,194.304,642,412.2326,140,183.68
18.Deferredtaxassets/deferredtaxliabilities
(1)Deferredtaxassetsbeforeoffset
Unit:RMBItems
ClosingbalanceOpeningbalanceDeductibletemporary
difference
Deferredtaxassets
Deductibletemporarydifference
DeferredtaxassetsProvisionforbaddebt115,626,649.8223,099,167.2178,915,609.3015,835,440.18Provisionforinventorywrite-down62,933,045.4210,444,607.1867,642,565.6011,282,463.93Unrealizedprofitfrominternaltransactions185,453,037.2522,200,912.62180,209,650.5417,242,885.11Deductiblelosses148,946,529.3629,996,233.85153,097,367.8532,871,988.62Deferredincome:governmentgrants134,799,813.9422,257,469.79140,105,328.4322,782,106.08Provisionforfixedassetsimpairments3,694,330.68554,149.623,694,330.68554,149.61Floatinglossonderivatives3,665,344.50549,801.68300,000.0045,360.00Share-paidremuneration193,768,250.5630,827,179.70209,618,110.5333,059,655.93Provisionalcostestimate28,942,635.184,327,806.2027,565,532.124,134,829.82Total877,829,636.71144,257,327.85861,148,495.05137,808,879.28
(2)Deferredtaxliabilitiesbeforeoffset
Unit:RMBItems
ClosingbalanceOpeningbalanceTaxabletemporary
difference
Deferredtaxliabilities
Taxabletemporary
difference
DeferredtaxliabilitiesDepreciationandamortizationexpense
867,295,201.66149,245,103.66770,755,369.92128,446,514.86Floatinggainonderivatives
13,672,819.752,261,859.3313,804,602.362,070,690.35Floatinggainonfinancialproducts
10,034.261,505.141,739,861.78260,979.27Total880,978,055.67151,508,468.13786,299,834.06130,778,184.48
(3)Deferredtaxassetsorliabilitiesafteroffsetshownonanetoffsettingbasis
Unit:RMBItems
Deferredtaxassetsandliabilitiesoffsetamountattheendofthe
balanceamount
Closingbalanceofdeferredtaxassetsorliabilitiesafteroffset
Deferredtaxassetsandliabilitiesoffsetamountatthebeginningoftheperiod
OpeningbalanceofdeferredtaxassetsorliabilitiesafteroffsetDeferredtaxassets
144,257,327.85137,808,879.28Deferredtaxliabilities
151,508,468.13130,778,184.48
(4)Detailsofunrecognizeddeferredtaxassets
Unit:RMBItemsClosingbalanceOpeningbalanceProvisionforbaddebt66,462,431.3055,823,915.76Provisionforinventorywrite-down24,084,839.6426,934,726.68Deductiblelossesofsubsidiaries26,719,611.8724,790,389.63Provisionforintangibleassetsimpairments3,824,097.933,862,456.71Floatinglossonderivatives4,061,040.127,639,957.91Share-paidremuneration12,106,170.5711,139,485.50Investmentlossesrecognizedbytheequitymethod
6,428,507.384,319,616.68Total143,686,698.81134,510,548.87
(5)Deductiblelossesofunrecognizeddeferredtaxassetswillexpireinthefollowingyears
Unit:RMBMaturityyearsClosingbalanceOpeningbalanceRemarksYear2025445,585.90445,585.90Year20262,147,004.73Year202810,478,078.4210,478,078.42Year20297,488,066.677,488,066.67Year20306,146,831.816,378,658.64Year203114,044.34Total26,719,611.8724,790,389.63--
19.Othernon-currentassets
Unit:RMBItems
ClosingbalanceOpeningbalanceBookbalance
Provisionforimpairment
CarryingamountBookbalance
Provisionforimpairment
CarryingamountAdvancedpaymentforassetspurchasing
365,696,226.22365,696,226.22251,509,127.08251,509,127.08Total365,696,226.22365,696,226.22251,509,127.08251,509,127.08
20.Short-termborrowings
(1)Categoriesofshort-termborrowings
Unit:RMBItemsClosingbalanceOpeningbalanceCreditborrowings20,000,000.00Overseasloanunderdomesticguarantee520,960,900.00362,698,500.00Accruedinterest420,293.64389,796.60Total521,381,193.64383,088,296.60
21.Derivativefinancialliabilities
Unit:RMBItemsClosingbalanceOpeningbalanceForeignexchangetool3,100,848.007,939,957.91
Futurestool4,625,536.62Total7,726,384.627,939,957.91
22.Notespayable
Unit:RMBCategoriesClosingbalanceOpeningbalanceBankacceptancebill1,856,484,983.841,238,574,463.73Total1,856,484,983.841,238,574,463.73Atthebalancesheetdate,balancesduebutunpaidtotaledRMB0.
23.Accountspayable
(1)Detailsofaccountspayable
Unit:RMBItemsClosingbalanceOpeningbalanceWithin1year2,476,690,653.882,184,050,911.511to2years7,670,181.6188,579,882.542to3years2,553,875.301,289,268.11Over3years4,761,089.425,741,693.81Total2,491,675,800.212,279,661,755.97
24.Advancesreceived
(1)Detailsofadvancesreceived
Unit:RMBItemsClosingbalanceOpeningbalanceAdvancecollectionofassetpackagedisposalfunds
10,000,000.0010,000,000.00Total10,000,000.0010,000,000.00
25.Contractliabilities
Unit:RMBItemsClosingbalanceOpeningbalanceAdvancepaymentforgoods44,096,560.8642,581,607.67Total44,096,560.8642,581,607.67
26.Employeebenefitspayable
(1)Detailsofemployeebenefitspayable
Unit:RMBItemsOpeningbalance
Increasedincurrent
period
Decreasedincurrent
period
ClosingbalanceⅠ.Short-termemployeebenefits
282,701,491.43938,462,396.231,008,263,483.03212,900,404.63Ⅱ.Post-employmentbenefits-definedcontributionplan
2,888,141.3533,893,467.6732,910,297.653,871,311.37Ⅲ.Terminationbenefits3,716,281.21519,403.323,196,877.89Total289,305,913.99972,355,863.901,041,693,184.00219,968,593.89
(2)DetailsofShort-termemployeebenefits
Unit:RMBItemsOpeningbalance
Increasedincurrent
period
Decreasedincurrent
period
Closingbalance
1.Wage,bonus,allowancesandsubsidy264,874,751.98793,550,205.74864,919,353.82193,505,603.90
2.Employeewelfarefund27,709,433.1427,709,433.14
3.Socialinsurancepremium10,408,040.8154,208,888.9252,896,580.4011,720,349.33Including:Occupationalinjuriespremium
256,781.03805,218.15827,973.35234,025.83MedicarepremiumandMaternitypremium
2,405,489.0518,967,757.7319,016,455.932,356,790.85Overseassocialsecuritycontributions7,745,770.7334,435,913.0433,052,151.129,129,532.65
4.Housingprovidentfund16,029,179.8116,029,179.81
5.Tradeunionfundandemployeeeducation
fund
1,224,164.063,590,876.433,554,347.131,260,693.36Dispatchingremuneration3,460,279.6443,149,696.7343,154,588.733,455,387.64Cashstockappreciationoption2,734,254.94224,115.462,958,370.40Total282,701,491.43938,462,396.231,008,263,483.03212,900,404.63
(3)Detailsofdefinedcontributionplan
Unit:RMBItemsOpeningbalance
Increasedincurrent
period
Decreasedincurrentperiod
Closingbalance
1.Basicendowment
insurancepremium
2,771,543.3532,894,443.2931,945,151.283,720,835.36
2.Unemployment
insurancepremium
116,598.00999,024.38965,146.37150,476.01Total2,888,141.3533,893,467.6732,910,297.653,871,311.37
27.Taxesandratespayable
Unit:RMBItemsClosingbalanceOpeningbalanceVAT23,370,647.9714,647,359.92Enterpriseincometax66,877,724.4733,105,141.57Individualincometax5,192,919.695,797,449.67Urbanmaintenanceandconstructiontax1,894,588.222,283,772.47Educationsurcharge978,617.021,207,595.10Localeducationsurcharge652,424.69717,275.16Housingpropertytax7,615,056.8914,503,893.38Landusetax6,375,492.822,162,780.06Localfoundationforwaterworks73,179.7660,119.04Others690,572.93522,755.69Total113,721,224.4675,008,142.06
28.Otherpayables
Unit:RMBItemClosingbalanceOpeningbalanceDividendpayable1,200,000.00Otherpayables228,347,075.23270,888,400.58Total229,547,075.23270,888,400.58
(1)Dividendpayable
Unit:RMB
ItemsClosingbalanceOpeningbalanceDividendofcommonstock1,200,000.00Total1,200,000.00
(2)Otherpayables
1)Otherpayableslistedbynature
Unit:RMB
ItemsClosingbalanceOpeningbalanceRestrictedsharesrepoobligations106,824,717.50145,063,690.00Freightandmiscellaneouscharges69,107,949.9972,117,058.15Productwarrantyfee3,030,855.082,757,036.90Guaranteedeposit13,589,517.706,564,169.23Rentandpropertyfee2,044,648.527,877,975.71Compensationforproductqualityloss1,303,380.143,889,429.08Collectionoftalentawards6,013,705.921,320,000.00Others26,432,300.3831,299,041.51Total228,347,075.23270,888,400.58
29.Non-currentliabilitiesduewithinoneyear
Unit:RMB
ItemsClosingbalanceOpeningbalanceGuaranteedborrowings770,000,000.00Overseasloanunderdomesticguarantee241,362,511.00130,498,000.00Accruedinterest778,827.0455,923.87Total1,012,141,338.04130,553,923.87
30.Long-termborrowings
(1)Categoriesoflong-termborrowings
Unit:RMB
ItemsClosingbalanceOpeningbalanceGuaranteedborrowings660,000,000.001,380,000,000.00Overseasloanunderdomesticguarantee256,465,970.00326,142,884.74Accruedinterest959,721.861,776,110.13
Total917,425,691.861,707,918,994.87
31.Bondspayable
(1)Bondspayable
Unit:RMBItemsClosingbalanceOpeningbalanceConvertiblebond2,588,449,353.66Total2,588,449,353.66
(2)Changedamountincurrentperiod(Excludingpreferredshares,perpetualbondsandotherfinancialinstrumentsclassifiedasfinancialliabilities)
Unit:RMB
Bonds
Nominal
value
Issuedate
Bondduration
Issueamount
Openingbalance
Issueincurrentperiod
Accruedinterestatnominalvalue
Premiumordiscountamortization
Repaymentincurrentperiod
ClosingbalanceSanhuaconvertiblebond
100.00
Jun1,2021
6years
3,000,000
,000.00
2,577,764
,452.17
500,000.0
10,184,90
1.49
2,588,449
,353.66Total------
3,000,000
,000.00
2,577,764
,452.17
500,000.0
10,184,90
1.49
2,588,449
,353.66
(3)Conditionforsharesconvertedfromconvertiblebondandthetimeofconversion
AccordingtoZJXK[2021]No.168,thecompanyissuedRMB3billionconvertiblebondsonJune1,2021.TheCompanyissued30millionconvertiblecorporatebondswithanominalvalueofRMB100.Conditionforsharesconvertedfromconvertiblebondandthetimeofconversion:
1)Bondduration:Thetermofconvertiblebondsis6yearsfromthedateofissuance,i.e.fromJune1,2021toMay31,2027
2)Nominalinterestrate:0.2%inthefirstyear,0.4%inthesecondyear,0.6%inthethirdyear,1.5%inthefourthyear,1.8%inthefifthyearand2.0%inthesixthyear.
3)Initialsharesconversionprice:theinitialconversionpriceoftheconvertiblebondsisRMB21.55pershare.Duringthedurationoftheconvertiblebond,whentheclosingpriceoftheCompany'sstockislowerthan85%ofthecurrentconversionpriceforatleast15tradingdaysinany30consecutivetradingdays,theboardofdirectorsoftheCompanyhastherighttoproposeadownwardamendmentfortheconversionpriceandsubmitittothegeneralmeetingofshareholdersoftheCompanyfordeliberationandvoting.
4)Termofconversion:thetermoftheconvertiblebondstartsfromthefirsttradingday(December7,2021),6monthsaftertheendoftheissuanceonJune7,2021(T+4days),tothematuritydateoftheconvertiblebond(May31,2027)
5)Redemptionconditions:
a.RedemptionatmaturityWithinfivetradingdaysafterthematurityofconvertiblebondissuance,theCompanywillredeemtheunconvertedconvertiblebondatapriceof110%ofthebond'snominalvalue(includingthelastinstalmentinterest)b.ConditionalredemptionDuringtheconversionperiod,whenanyofthefollowingsituationsoccurs,theCompanyreservestherighttodecidetoredeemallorpartoftheconvertiblebondsthathavenotbeenconvertedatthenominalvalueofthebondsplustheaccruedinterestforthecurrentperiod.
(1)TheclosingpriceoftheCompany'sstockshallnotbelowerthan130%ofthecurrentconversionpriceforatleast15tradingdaysinany30consecutivetradingdays.
(2)WhentheunconvertedbalanceofconvertiblebondislessthanRMB30million.
6)Puttablebondsprovision
a.Conditionalconvertibleputtablebonds
InthelasttwointerestbearingyearsoftheConditionalConvertiblePuttableBonds(“thePuttableBonds”),ifthecompany'sstockclosingpriceforany30consecutivetradingdaysislowerthan70%ofthecurrentconversionprice,thePuttableBondsholdershavetherighttoresellallorpartofthePuttableBondstotheCompanyatthenominalvalueplusthecurrentaccruedinterest.Iftheconversionpricehasbeenadjustedwithinbytheabove30tradingdays,thetradingdaybeforeadjustmentshouldbecalculatedaccordingtotheconversionpriceandclosingpricebeforeadjustment,andthetradingdayafteradjustmentshallbecalculatedaccordingtotheconversionpriceandclosingpriceafteradjustment.Incaseofdownwardamendmentfortheconversionprice,theabove30consecutivetradingdaysshouldberecalculatedfromthefirsttradingdayafterdownwardamendmentfortheconversionprice.
WithinthelasttwointerestbearingyearsofthePuttableBonds,aftertheconditionsforexerciserightaremetforthefirsttimeeachyear,theholderofthePuttableBondscanexercisetheputtablerightonceinaccordancewiththeaboveagreedconditions.IftheconditionsforbondholderstoexercisetherighttoearlyrepaymentoftheprincipalaremetforthefirsttimeandtheholderofthePuttableBondsfailstonotifytheirintentiontoexerciseitduringtherepurchasedeclarationperiodannouncedbythecompanyatthattime,thebondholderrighttoearlyrepaymentshallnotbeexercisedintheinterestcalculationyear.Eachputtablebondholdercanexercisetheputtablerightonlyonceinaccordancewiththeaboveagreedconditions.
b.Additionalissuanceofputtablebonds
Ifthereisasignificantchangeintheimplementationofthecompany’sinvestmentprojectwiththeproceedsraisedfromtheissuanceofPuttableBondsandthecompany’scommitmentintheprospectus,itwillbedeemedtobeachangeintheuseoftheproceedsaccordingtotherelevantprovisionsoftheChinaSecuritiesRegulatoryCommissionorberecognizedbytheChinaSecuritiesRegulatoryCommissionasifthepurposeoftheraisedfundsischanged,theholdersofthePuttableBondshavetheoptiontoexercisetherightoncetoearlyrepaymentofprincipal.HoldersofPuttableBondshavetherighttosellallorpartoftheirPuttableBondsbacktothecompanyatthebondfacevaluepluscurrentaccruedinterest.Intheeventthatadditionalissuanceofputtablebondsconditionsaremet,theexistingholdercanexerciseitsrightforthebondtoberedeemedduringthereportingperiodafterthecompany'sannouncement;iftherighttoredemptionisnotexercisedduringthereportingperiodbythebondholder,thebondholder’srightshallnotbeexercised.
32.Long-termpayables
Unit:RMBItemsClosingbalanceOpeningbalance
Long-termpayables84,940,677.9190,336,083.27Total84,940,677.9190,336,083.27
(1)Long-termpayableslistedbynature
Unit:RMBItemsClosingbalanceOpeningbalancePayablesforfinancialleasing84,162,723.1589,432,221.08Stockappreciationrightsdeposit777,954.76903,862.19PayablesforfinancialleasingRemainingleaseterm
ClosingbalanceOpeningbalanceWithin1year9,196,945.216,417,433.101to2years
9,840,440.5910,274,197.362to3years
10,019,388.6610,274,197.36Over3years
62,098,461.1570,534,422.75Subtotal
91,155,235.6197,500,250.57Less:Unrecognizedfinancingcharges
6,992,512.468,068,029.49Subtotal
84,162,723.1589,432,221.08
33.AccruedLiability
Unit:RMBItemsClosingbalanceOpeningbalanceReasonPendinglitigation2,638,000.00Total2,638,000.00--
34.Deferredincome
Unit:RMBItemsOpeningbalance
Increasedincurrent
period
Decreasedincurrent
period
ClosingbalanceReasonGovernmentgrants140,105,336.434,700,000.0010,005,522.49134,799,813.94Total140,105,336.434,700,000.0010,005,522.49134,799,813.94--
Projectsrelatedtogovernmentgrants:
Unit:RMB
ItemsOpeningbalance
Increasedincurrentperiod
GrantsincludedintoNon-operating
revenueincurrentperiod
Theamountrecordedasotherincomeincurrentperiod
Offsettingcostandexpensesincurrentperiod
Otherchanges
Closingbalance
Relatedtoassets/relatedto
incomeGrantforprojectofanannualoutputof15millioncommercialrefrigerationandair-conditioningautomaticcontrolcomponents
2,449,000.201,224,499.981,224,500.22
RelatedtoassetsSpecialfundgrantformultistoryfactorybuildingsofsmallandmedium-sizedenterprises
4,995,134.10110,959.984,884,174.12
RelatedtoassetsGrantforinnovationabilityconstructionprojectofNationalEnterpriseTechnologyCenter
3,125,000.16312,499.982,812,500.18
RelatedtoassetsGrantfortechnicaltransformationprojectofnewlyincreased800000setsofheatexchangerperyear
2,274,000.00379,000.001,895,000.00
RelatedtoassetsGrantfortechnicaltransformationprojectofnewannualoutputof2millionairconditioningcomponents
2,208,000.08276,000.001,932,000.08
RelatedtoassetsGrantfortheindustrializationprojectof20millionrefrigerationandairconditioningautomaticcontrolcomponents
278,837.70278,837.70
RelatedtoassetsGrantforcommercialmachinemicro-channelheatexchangertechnicaltransformationproject
1,291,850.00369,100.00922,750.00
RelatedtoassetsGrantfor1millionsetsofair-conditioningthermalsensortechnologytransformationofnewenergyvehicle
5,492,100.16500,000.00457,674.955,534,425.21
Relatedtoassets
ZhejiangSanhua
Grantforanannualoutputof2millionsetsofhigh-efficiencyenergy-savinginvertercontrollers
1,779,470.08257,973.82Grantfortechnicaltransformationprojectofnewlyincreased100000setsofheatexchangerperyear
5,056,860.00421,405.00Grantforconstructionprojectofpublictestanddetectionserviceplatformforrefrigerationcomponents
699,999.64350,000.04Grantfortheconstructionprojectofautomaticcontrolcomponentsforresidentialairconditionerswithanannualoutputof10million
480,000.00240,000.00Grantforpollutionsourcetreatmentproject1,168,491.6789,450.00Grantforconstructionprojectofpublicinspectionandtestingserviceplatformforautomobileairconditioningparts
256,666.87192,499.98Technicaltransformationprojectfortheproductionlineofenergy-savingresidentialair-conditioningcontrolcomponentswithanannualoutputof50millionsets
497,115.5663,461.52Grantforconstructionprojectof25millionsetsofnewenergy-savingandenvironmentalprotectionvariablefrequencyairconditioningexpansionvalve
340,000.2867,999.98Industrialtransferprojectsandsingleequipmentinvestmentgrant
306,364.0671,196.42ComprehensiveinvestmentawardfortechnologicaltransformationofindustrialenterprisesinWuhuCity
2,985,248.00178,944.00Industrialtransformationandupgrading,technological1,412,834.44101,212.44
ZhejiangSanhua
transformationandindustrialinvestmentGrantforcomprehensivetechnicaltransformationprojectofintelligentmanufacturingofrefrigerationcomponents
5,799,850.00414,274.98Grantfortechnicaltransformationprojectof30millionsetsofhighefficiencyenergysavingrefrigerationandairconditioningcontrolcomponents
6,400,000.00400,000.02Grantforprojectofanannualoutputof11.5millionnewenergyautomobileparts
17,663,068.274,200,000.001,488,090.22Four-wayreversingvalveoptimizationproject573,333.4479,999.98PolicygrantforWuhuCity'sstrongindustrialbaseandmanufacturingstrongprovince
705,000.0045,000.00Grantfortechnicaltransformationprojectofannualoutputof7.3millionnewenergyvehiclethermalmanagementsystemcomponents
40,380,000.00Annualproductionof3millionself-circulatingsuperconductingplatestechnologyproject
717,750.0049,500.00IntelligentfactorytechnologicaltransformationprojectbasedonTheInternetofThingstechnology
3,624,999.89250,000.02Grantforintelligentmanufacturingtechnicaltransformationprojectofanannualoutputof6millioncommercialrefrigerationcomponents
2,631,220.00180,000.00Comprehensiveawardandcompensationforinvestmentintechnologicaltransformationofindustrialenterprises
1,942,702.09137,982.12Grantfortechnicaltransformationprojectofannual1,115,724.1756,254.98
ZhejiangSanhua
outputof12millioncommercialrefrigerationcontrolcomponentsGrantforequipmentspromotingnewtypeindustrialtechnologicaltransformation
1,273,707.3265,888.98Producttechnicaltransformationprojectofannualoutputof700000largeheatexchangers
6,025,050.00334,725.00Grantfortechnicaltransformationprojectof30millionsetsofhighefficiencyenergysavingrefrigerationandairconditioningcontrolcomponents
12,015,132.50605,805.00Grantforenergy-savingprojectwithanannualoutputof35millionsetsofL-typefour-wayreversingvalveforairconditioners
2,140,825.75455,285.40Total140,105,336.434,700,000.0010,005,522.49
35.Othernon-currentliabilities
Unit:RMBItemsClosingbalanceOpeningbalanceEngineeringagentconstructionfund28,782,218.0928,782,218.09Long-termemployeerightsprotectionpayment
50,218,720.6551,616,679.63Total79,000,938.7480,398,897.72Otherremarks:
Accordingtolocalinvestmentpromotionpolicies,the"sevenconnectionsandoneleveling"projectoftheconstructionlandoftheWuhucityiscompletedbyWuhuhigh-techIndustrialDevelopmentZoneAdministrationCommittee.Asthestate-ownedassetsmanagementunitofWuhuhigh-techIndustrialDevelopmentZone,WuhuXinmaInvestmentCo.,Ltd.andWuhuHigh-techConstructionDevelopmentCo.,Ltd.entrustedWuhuSanhuaAuto-controlComponentsCo.,LtdandWuhuSanhuaTechnologyCo.,Ltd.tobuildthe"sevenconnectionsandoneleveling"project,andallocatedRMB72.03millionasengineeringfund.AsofJune30,2021,theaccumulatedamountofhedgingandwritten-offofengineeringagentconstructionfundandprojectexpensewasRMB
43.2478million,andtheamounttobewritten-offattheendoftheperiodwasRMB28.7822million.
Long-termemployeerightsprotectionpayment:retirementpensionsofMr.HugoSchrott,fatherofMr.HaraldSchrottwhoistheformeractualcontrolleroftheGermanyAwecoresidentialappliancesbusiness.BasedonAustrianlaborlaw,one-timewelfarecompensationforterminationoflaborcontractandone-timewelfarecompensationforretirement,disabilityanddeath.Theamountofsuchliabilitiesisestimatedanddeterminedbyanindependentactuary.
36.Sharecapital
Unit:RMBOpeningbalance
Changedamountofcurrentperiod(+/-)
ClosingbalanceIssueofnewshares
Bonusshares
Reservetransferredtoshares
OthersSubtotalTotalshares3,591,601,468.003,591,601,468.00
37.Otherequityinstruments
(1)Changesinpreferredshares,perpetualbondsandotherfinancialinstrumentsissuedattheendoftheperiod
Unit:RMBFinancialinstruments
issued
OpeningbalanceIncreasedincurrentperiodDecreasedincurrentperiodOpeningbalanceQuantityBookvalueQuantityBookvalueQuantityBookvalueQuantityBookvalue
Convertiblebond
409,766,556.
409,766,556.
Total
409,766,556.
409,766,556.
Changesofotherequityinstrumentsinthecurrentperiod,explanationofchangereasons,andbasisofrelevantaccountingtreatment:
Withtheapprovalof[2021]No.168documentofChinaSecuritiesRegulatoryCommission,thecompanypubliclyissued30millionconvertiblebondsonJune1,2021,withanominalvalueofRMB100pershare,atotalissuanceamountofRMB3billionandatermof6years.ThetotalamountoffundsraisedfromtheissuanceofconvertiblebondsisRMB3billion,afterdeductingtheissuanceexpensesofRMB12,468,991.59(excludingtax),theactualnetamountoffundsraisedisRMB2,987,531,008.41.
WithreferencetothecreditbondinterestratesofsimilarenterpriseswithAA+creditratingandsimilarmaturitiesinthemarket,andafterdeductingthebondissuanceexpenses,thevalueoftheconvertiblebonddebtinstrumentisRMB2,577,764,452.17andthevalueoftheequityinstrumentisRMB409,766,556.24.
38.Capitalreserve
Unit:RMBItemsOpeningbalance
Increasedincurrent
period
Decreasedincurrent
period
ClosingbalanceCapitalpremium(Sharepremium)
99,640,721.5141,153,220.00140,793,941.51Othercapitalreserve215,776,712.7126,270,045.1047,326,203.00194,720,554.81Total315,417,434.2267,423,265.1047,326,203.00335,514,496.32Otherremarks,includingchangedamountofthecurrentperiodandmovementreason:
Reasonsforchangesinthecurrentperiod:①Incurrentperiod,thecompanyhaveunlocked4,596,150equityincentiverestrictedshares,correspondingtoshare-basedpaymentremunerationofRMB41,153,220.00,transferthesameamountfromcapitalreservetosharepremium,andreduceothercapitalreservesanddeferredincometaxassetsRMB6,172,983.00;②OthercapitalreserveincreasedRMB26,270,045.10duetotheconfirmationofshare-basedpaymentremuneration.
39.Treasuryshares
Unit:RMBItemsOpeningbalance
Increasedincurrent
period
Decreasedincurrent
period
ClosingbalanceRestrictedshares145,063,690.0038,238,972.50106,824,717.50Reposhares136,420,051.34136,420,051.34Total281,483,741.3438,238,972.50243,244,768.84Otherremarks,includingchangedamountofthecurrentperiodandmovementreason:
①InApril2021,thecompanyimplementedthe2020equitydistributionwithadividendofRMB5,553,275.00forequityincentiverestrictedshares,andthetreasurysharesandrepoobligationspayablewerereducedbythesameamount;②Incurrentperiod,thecompanyhaveunlocked4,596,150equityincentiverestrictedshares,thegrantpricewasRMB9.85pershare,afterex-rightsdividendadjustment,thepriceapproximatelyequaltoRMB7.1115pershare((9.85-0.15)/(1+0.3)-0.1-0.25),unlocked
amountisRMB32,685,697.50,andthetreasurysharesandrepoobligationspayablewerereducedbythesameamount.
40.Othercomprehensiveincome(OCI)
Unit:RMB
Items
Openingbalance
Changedamountofthecurrentperiod
ClosingbalanceCurrentperiodcumulativebeforeincometax
Less:OCIcarriedforwardtransferredtoprofitorloss
Less:OCIcarriedforwardtransferred
toundistributedprofit
Less:
incometaxexpense
Attributabl
etotheparentCompany
after
tax
Attributabl
etoNon-controllinginterestaftertaxItemstobereclassifiedsubsequentlytoprofitorloss
-89,624,962.
-17,246,63
5.52
-17,246,63
5.52
-106,871,598.13ConverteddifferenceinForeign
-89,624,962.
-17,246,63
5.52
-17,246,63
5.52
-106,871,598.13TotalOCI
-89,624,962.
-17,246,63
5.52
-17,246,63
5.52
-106,871,598.13
41.Surplusreserve
Unit:RMBItemsOpeningbalance
Increasedincurrentperiod
Decreasedincurrentperiod
ClosingbalanceStatutorysurplusreserve611,472,556.89611,472,556.89Discretionarysurplusreserve8,681,137.208,681,137.20Reservefund17,813,919.3817,813,919.38Total637,967,613.47637,967,613.47
42.Undistributedprofit
Unit:RMBItemsCurrentperiodPreviousperiodBalancebeforeadjustmentattheendofthepreviousperiod
5,890,916,707.835,278,392,288.84Openingbalanceafteradjustment5,890,916,707.835,278,392,288.84Add:Netprofitattributabletoshareholdersofthe823,881,221.70643,481,717.35
parentcompanyforcurrentyearLess:Payabledividendsonordinaryshares895,454,593.00413,337,540.30Closingbalanceofundistributedprofit5,819,343,336.535,508,536,465.89
43.OperatingrevenueandOperatingcost
Unit:RMBItems
CurrentperiodcumulativePrecedingperiodcomparativeRevenueCostRevenueCostMainoperations7,359,458,785.545,303,220,897.985,154,036,483.163,687,894,611.98Otheroperations314,622,976.15298,590,581.64164,142,143.61151,731,392.72Total7,674,081,761.695,601,811,479.625,318,178,626.773,839,626,004.70
44.Taxesandsurcharges
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeUrbanmaintenanceandconstructiontax10,179,080.4111,285,362.07Educationsurcharge5,228,681.605,862,443.58Housingpropertytax7,902,829.607,739,313.64Landusetax4,561,087.173,936,973.44Stampduty2,905,152.171,718,299.51Localeducationsurcharge3,485,801.103,917,789.39Localfoundationforwaterworks480,439.56317,066.13Others1,620,081.441,532,392.64Total36,363,153.0536,309,640.40
45.Sellingexpenses
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeLaborcost107,494,444.6089,959,268.53Warehousing,freightandmiscellaneouscharges
170,380,255.46107,209,661.24
Entertainmentexpense15,792,822.5311,184,991.26Travelexpense6,797,345.197,216,150.87Marketmaintenancefee7,048,733.8321,127,233.51Advertisingexpense1,899,365.323,565,221.92Others12,495,802.5317,179,973.21Total321,908,769.46257,442,500.54
46.Administrativeexpenses
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeLaborcost221,584,740.82180,394,958.75Share-basedpaymentremuneration26,494,160.5631,363,797.18Officeexpense43,677,277.4537,525,515.30Entertainmentexpense7,220,376.684,931,757.55Depreciationandamortizationexpense34,793,775.7333,079,843.36Intermediaryservicefee15,889,432.1715,638,721.85Vehicleexpense5,647,121.793,554,310.73Others19,124,651.018,861,840.43Total374,431,536.21315,350,745.15
47.R&Dexpenses
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeLaborcost186,897,454.69133,441,569.36Materialandpowerexpense110,747,519.7370,421,777.52Depreciationandamortizationexpense17,325,821.9416,095,750.47Moldmanufacturingfee22,006,077.529,274,489.97Travelexpense1,375,884.501,444,769.03Royalties2,136,353.461,278,190.44OutsourcingR&Dexpense150,000.00734,967.97Others11,536,437.787,321,413.62Total352,175,549.62240,012,928.38
48.Financialexpenses
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeInterestexpense40,208,255.7532,558,310.10Interestincome-43,640,017.31-19,167,271.27Bankfinancingfee802,376.051,399,332.23Cashdiscount-1,978,825.66-1,126,936.47Exchangegainsorlosses51,129,161.17-45,679,616.29Others2,783,481.902,122,784.66Total49,304,431.90-29,893,397.04
49.Otherincome
Unit:RMBSourceoftheotherincomeCurrentperiodcumulativePrecedingperiodcomparativeGovernmentgrants71,379,416.62100,414,953.91Including:VATrefundofcivilwelfareenterprises
4,370,400.005,134,826.02VATrefundonsoftwareproductsinexcessoftaxburden
2,974,905.571,689,841.68Handlingfeesforwithholdingindividualincometax
702,064.601,113,187.32Total72,081,481.22101,528,141.23
50.Investmentincome
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeInvestmentincomefromlong-termequityinvestmentsunderequitymethod
4,108,890.701,826,673.64Investmentincomeofbankfinancingproducts4,163,475.2820,408,132.79Gainsandlossesonsettlementoffuturescontracts31,449,091.11-17,407,734.45Gainsandlossesonsettlementofforeignexchangecontract61,385,788.33-12,822,186.77Billdiscountinterest-3,707,072.41-114,807.17
Total97,400,173.01-8,109,921.96
51.Gainsorlossesonchangesinfairvalue
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeFloatingincomeofbankfinancingproducts-613,379.14-300,099.30Floatingincomeoffuturescontracts-11,620,437.0218,412,630.80Floatingincomeofforeignexchangecontract-20,461,881.22-11,592,485.54Total-32,695,697.386,520,045.96
52.Creditimpairmentloss
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeProvisionforbaddebt-48,442,168.40-12,874,290.80Total-48,442,168.40-12,874,290.80
53.Assetsimpairmentloss
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeInventorywrite-downlossandcontractperformancecostimpairmentloss
-18,614,580.55-6,302,857.17Total-18,614,580.55-6,302,857.17
54.Gainsonassetdisposal
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeGainsondisposaloffixedassets400,172.51-319,355.00
55.Non-operatingrevenue
Unit:RMB
ItemsCurrentperiodcumulativePrecedingperiodcomparative
Amountincludedinnon-recurringprofitorlossExemptedpayment1,062,439.33637,810.131,062,439.33Compensationandpenaltyincome
1,182,168.21471,406.191,182,168.21Gainsfromretirementoffixedassets
74,165.9426,006.6874,165.94Others153,386.66331,761.81153,386.66Total2,472,160.141,466,984.812,472,160.14
56.Non-operatingexpenditures
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparative
Amountincludedinnon-recurringprofitorlossDonationexpenditures160,000.0052,072.82160,000.00Lossesonretirementoffixedassets
2,097,520.701,109,947.202,097,520.70Compensationandliquidateddamagesexpenses
942,720.28942,720.28Others403,940.72192,059.13403,940.72Total3,604,181.701,354,079.153,604,181.70
57.Incometaxexpenses
(1)Incometaxexpenses
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeCurrentperiodincometaxexpenses162,540,094.7190,079,636.80Deferredincometaxexpenses8,067,026.458,937,711.57Total170,607,121.1699,017,348.37
(2)Reconciliationofaccountingprofittoincometaxexpenses
Unit:RMBItemsCurrentperiodcumulative
Profitbeforetax1,007,084,200.68Incometaxexpensebasedonstatutory/applicabletaxrate171,418,116.18Effectofpriorincometaxreconciliation9,019,203.13Effectofdeducibletemporarydifferencesordeductiblelossesnotrecognized
416,537.08Adjustmentofpermanentdifferences-10,246,735.23Incometaxexpenses170,607,121.16
58.Othercomprehensiveincome
Pleaserefertothenotesofothercomprehensiveincomeofbalancesheetitemsfordetails.
59.Notestoitemsoftheconsolidatedcashflowstatement
(1)Othercashreceiptsrelatedtooperatingactivities
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeGovernmentgrants44,281,463.7288,442,413.04Netchangeinrestrictedfunds730,130.35Interestincome43,640,017.3119,167,271.27Rentalincome4,188,087.325,168,725.74Guaranteedeposit,etc.19,865,200.2326,203,437.00Total112,704,898.93138,981,847.05
(2)Othercashpaymentsrelatedtooperatingactivities
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeNetchangeinrestrictedfunds56,390,427.84Guaranteedeposit939,945.51901,638.78Expensepaymentsfortheperiod520,664,325.30315,998,963.23Total521,604,270.81373,291,029.85
(3)Othercashreceiptsrelatedtoinvestingactivities
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeRedemptionofbankfinancingproducts579,087,170.50276,799,043.00Netchangeinrestrictedfunds850,000.00Incomefromsettlementofforeignexchangeinstruments
61,385,788.32Incomeofsettlementoffuturesinstruments
31,449,091.11Total671,922,049.93277,649,043.00
(4)Othercashpaymentsrelatedtoinvestingactivities
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativePaymentsforpurchasingbankfinancingproducts
17,000,000.00505,000,000.00Netchangeinrestrictedfunds18,150,010.988,965,073.04Lossfromsettlementofforeignexchangeinstruments
12,129,251.67Lossofsettlementoffuturesinstruments14,109,054.76Total35,150,010.98540,203,379.47
(5)Othercashreceiptsrelatedtofinancingactivities
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeNetchangeinrestrictedfunds26,080,652.17Issuanceofconvertiblebond2,987,977,500.00Total2,987,977,500.0026,080,652.17
(6)Othercashpaymentsrelatedtofinancingactivities
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparative
Repaymentoffinancialleaseandinterest6,345,014.962,380,973.66Bankfinancingfee802,376.051,399,332.23Reposharesexpenses(includingrestrictedshares)
2,262,423.50Total9,409,814.513,780,305.89
60.Supplementinformationtothecashflowstatement
(1)Supplementinformationtothecashflowstatement
Unit:RMBSupplementinformationCurrentperiodcumulativePrecedingperiodcomparative
1.Reconciliationofnetprofittocashflowfromoperating
activities:
----Netprofit836,477,079.52640,867,524.19Add:Provisionforassetsimpairmentloss67,056,748.9519,177,147.97
Depreciationoffixedassets,oilandgasassets,productivebiologicalassets
221,626,816.40188,283,241.38
Depreciationofrightofuseassets
Amortizationofintangibleassets10,184,699.569,406,201.41
AmortizationofLong-termprepayments4,642,412.234,013,736.74
Lossondisposaloffixedassets,intangibleassetsandotherlong-termassets(or“-”:gains)
-400,172.51319,355.00
Lossonretirementoffixedassets(or“-”:gains)2,023,354.761,083,940.52
Lossesonchangesinfairvalue(or“-”:gains)32,695,697.38-6,520,045.96
Financialexpenses(or“-”:income)41,010,631.8033,957,642.33
Investmentloss(or“-”:income)-101,107,245.428,109,921.96
Decreaseofdeferredtaxassets(or“-”:increase)-12,621,431.574,667,823.78
Increaseofdeferredtaxliabilities(or“-”:decrease)20,730,283.654,269,887.79
Decreaseininventories(or“-”:increase)-629,050,587.52271,639,352.73
Decreaseinoperatingreceivables(or“-”:increase)-522,973,086.43112,901,508.32
Increaseofoperatingpayables(or“-”:decrease)828,651,377.36-218,889,585.92
Others26,270,045.1031,363,797.18Netcashflowfromoperatingactivities825,216,623.261,104,651,449.42
2.Significantinvestingandfinancingactivitiesnotrelatedto
cashreceiptsandpayments:
----
TheconversionofadebtintocapitalConvertiblebondsduewithinoneyearFixedassetsacquiredunderfinanceleases
3.Netchangesincashandcashequivalents:----
Closingbalanceofcash6,194,924,772.423,263,679,215.37Less:Openingbalanceofcash3,400,144,038.542,553,783,015.01Add:ClosingbalanceofcashequivalentsLess:OpeningbalanceofcashequivalentsNetincreaseofcashandcashequivalents2,794,780,733.88709,896,200.36
(2)Compositionofcashandcashequivalents
Unit:RMBItemsClosingbalanceOpeningbalanceI.Cash6,194,924,772.423,400,144,038.54Including:Cashonhand327,111.73232,265.51
Cashinbankthatcanbereadilydrawnondemand
6,194,597,660.693,399,911,773.03II.Cashandcashequivalentsatendofyear6,194,924,772.423,400,144,038.54
61.Assetswithrestrictiononownershiporuserights
Unit:RMBItemsCarryingamountattheendoftheperiodCauseofrestrictionCashandbankbalance106,963,410.23
Guaranteedeposit,Guaranteedepositedinfuturesinstitutions,BankdepositsfrozenbylitigationNotesreceivable1,579,929,231.31PledgefinancingTotal1,686,892,641.54--
62.Monetaryitemsinforeigncurrencies
(1)Monetaryitemsinforeigncurrencies
Unit:RMBItemsClosingbalanceinforeignExchangerateRMBequivalent
currenciesCashandbankbalances----Including:USD
EURHKDAccountsreceivable----Including:USD
EURHKDLong-termreceivable----Including:USD
EURHKDMonetaryfundIncluding:USD46,015,091.676.4601297,262,093.70
EUR36,202,791.977.6862278,261,899.64Othercurrencies57,851,656.41Subtotal633,375,649.75DerivativefinancialassetsIncluding:USD1,576,886.766.460110,186,846.16
EUR600.007.68624,611.72Othercurrencies749,740.85Subtotal10,941,198.73AccountsreceivableIncluding:USD174,645,579.626.46011,128,227,908.90
EUR42,997,722.057.6862330,489,091.22Othercurrencies93,305,368.12Subtotal1,552,022,368.24OtherreceivablesIncluding:USD2,688,153.596.460117,365,741.01
EUR38,069.027.6862292,606.10Othercurrencies15,943,987.01
Subtotal33,602,334.12Short-termborrowingsIncluding:USD39,065,059.936.4601252,364,193.64
EUR35,000,000.007.6862269,017,000.00Subtotal521,381,193.64DerivativefinancialliabilitiesIncluding:USD628,634.256.46014,061,040.12Subtotal4,061,040.12AccountspayableIncluding:USD12,222,531.596.460178,958,776.32
EUR10,293,975.907.686279,121,557.56
Othercurrencies33,500,760.60Subtotal191,581,094.48OtherpayablesIncluding:USD955,519.336.46016,172,750.42
EUR1,766,403.537.686213,576,930.81
Othercurrencies17,361,384.04Subtotal37,111,065.27Non-currentliabilitiesduewithinoneyearIncluding:USD20,113,466.256.4601129,935,003.32
EUR14,500,000.007.6862111,449,900.00Subtotal241,384,903.32Long-termborrowingsIncluding:USD39,758,435.576.4601256,843,469.64
EUR7.6862Subtotal256,843,469.64Long-termpayablesIncluding:USD32,288.006.4601208,583.67
EUR11,015,552.197.686284,667,737.24
Othercurrencies64,357.00Subtotal84,940,677.91
(2)Notesonoverseasoperatingentities,includingforthesignificantoverseasoperatingentities,itsmainoperatinglocations,reportingcurrencyandthebasisforselectionshouldbedisclosed,andthereasonforchangesinreportingcurrencyshouldalsobedisclosed
√Applicable□NotApplicable
TheCompanyhasseveraloverseassubsidiaries,locateintheUnitedStates,Europe,Japan,Poland,Mexicoandothercountries,whereUSdollars,Japaneseyen,Polishzloty,Mexicanpesos,etc.areusedasthestandardreportingcurrency.
63.Governmentgrants
(1)Refundofgovernmentgrants
□Applicable√NotApplicable
Otherremarks:
Governmentgrants
(1)Details
1)GovernmentgrantsrelatedtoassetsFordetails,pleaserefertoexplanationofdeferredincomeinthenotesoftheconsolidatedfinancialstatements.2)Governmentgrantsrelatedtoincomeandusedtocompensaterelevantcost,expensesorlosses.
Items
Currentperiod
cumulative
FinancialReport
ItemsOverseassubsidyofCOVID-19
15,149,189.44
Otherincome
AwardofenterpriseR&Dinvestment
11,115,100.00
Otherincome
Talentintroductionandjobstabilizationsubsidies
6,748,889.22
OtherincomeVATrefundofcivilwelfareenterprises
4,370,400.00
Otherincome
Subsidyandawardofinnovativedevelopment
4,366,000.00
Otherincome
Enterprisepatentsubsidy
4,238,800.00
OtherincomeSubsidiesandrewardsforscientificandtechnologicalinnovationandentrepreneurship3,900,000.00
OtherincomeSpecialfundsforforeigntradeandeconomicdevelopment
3,710,600.00
OtherincomeVATrefundonsoftwareproductsinexcessoftaxburden
2,974,905.57
OtherincomeReturnofemploymentpromotionunemploymentinsurance
2,042,500.00
OtherincomeIndustrialsupportfundbonus
1,480,367.00
Otherincome
Others
1,979,207.50
Otherincome
Subtotal
62,075,958.73
(2)TheamountofgovernmentgrantsincludedintheprofitorlossstatementinthecurrentperiodisRMB72,081,481.22
Ⅷ.Interestinotherentities
1.Interestinsubsidiaries
(1)Compositionofenterprisegroup
Subsidyname
Mainoperatingplace
Placeofregistration
Businessnature
Holdingproportion
AcquisitionmethodDirectIndirectZhejiangSanhuaTradingCo.,LtdZhejiangZhejiangCommerce100.00%EstablishmentZhejiangSanhuaClimate&ApplianceControlsGroupCo.,Ltd
ZhejiangZhejiangManufacture74.00%26.00%
BusinesscombinationundercommoncontrolZhejiangSanhuaAutomotiveComponentsCo.,Ltd
ZhejiangZhejiangManufacture100.00%
BusinesscombinationundercommoncontrolSanhua(hangzhou)MicroChannelHeatExchangerCo.,Ltd
ZhejiangZhejiangManufacture100.00%
BusinesscombinationundercommoncontrolZhejiangSanhuaCommercialRefrigerationControlsCo.,Ltd
ZhejiangZhejiangManufacture100.00%EstablishmentSanhuaInternationalSingaporePte.Ltd
SingaporeSingaporeCommerce100.00%
BusinesscombinationundercommoncontrolSanhuaInternationalInc
theUnited
States
theUnitedStates
Commerce100.00%
BusinesscombinationundercommoncontrolOtherremarks:
TheabovesubsidiariesaresignificantsubsidiariesoftheCompany.Ⅸ.RisksRelatingtoFinancialInstrumentsTheCompany’soperatingactivitieshaveexposuretovariousfinancialrisks,whichmainlyinclude:creditrisk,liquidityrisk,andmarketrisk.TheCompany'soverallriskmanagementstrategyisaimedattheunpredictabilityofthefinancialmarketandstrivestoreducethepotentialadverseeffectsontheCompany'sfinancialperformance.(I)Creditrisk
Creditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischargeanobligation.
1.Creditriskmanagementpractice
(1)Evaluationmethodofcreditrisk
Ateachreportingdate,theCompanyassesseswhetherthecreditriskonafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition.Duringtheevaluation,theCompanyconsidersthatitcanobtainreasonableandsupportableinformationwithoutadditionalcostoreffort,includingqualitativeandquantitativeanalysisbasedonhistoricaldata,externalcreditriskrating,andforward-lookinginformation.Basedonasinglefinancialinstrumentoracombinationoffinancialinstrumentswithsimilarcreditriskcharacteristics,theCompanydeterminesthechangesindefaultriskoffinancialinstrumentsduringtheestimatedlifetimethroughcomparisonofthedefaultriskatthebalancesheetdateandtheinitialrecognitiondate.
TheCompanyconsidersthecreditriskonafinancialinstrumenthasincreasedsignificantlywhenoneormoreofthefollowingqualitativeandquantitativestandardsaremet.Quantitativestandardmainlyrelatestothescenarioinwhich,onthebalancesheetdate,theprobabilityofdefaultintheremaininglifetimehasrisenbymorethanacertainpercentagecomparedwiththeinitialrecognition.Qualitativestandardmainlyrelatestosignificantadversechangesinthedebtor’soperationorfinancialposition,presentorexpectedchangesintechnology,market,economyorlegalenvironmentthatwillhavesignificantadverseimpactonthedebtor’srepaymentability.
(2)Definitionofdefaultandcredit-impairedasset
Afinancialassetiscredit-impairedwhenoneormorefollowingeventshaveoccurred.Thestandardisconsistentwiththedefinitionofcreditimpairment,whichinclude:thedebtorhassignificantfinancialdifficulty,thedebtorbreachedthebindingclauseofthecontractonthedebtor,thedebtorislikelytogobankruptorotherfinancialreorganization,foreconomicorcontractualreasonsrelatingtothedebtor’sfinancialdifficulty,thecreditorhavinggrantedtothedebtoraconcessionthatthecreditorwouldnototherwiseconsider.
2.Measurementofexpectedcreditlosses
Thekeyfactorsinthemeasurementofexpectedcreditlossincludetheprobabilityofdefault,lossrateofdefault,andexposuretodefaultrisk.heCompanydevelopsamodeloftheprobabilityofdefault,lossrateofdefault,andexposuretodefaultriskonthebasisofquantitativeanalysisofhistoricaldata(e.g.counterpartyrating,guaranteemeasuresandcollateraltype,paymentmethod,etc.)andforward-lookinginformation.
3.Pleasereferto“Notesreceivable”,“Accountsreceivable”,“Otherreceivable”fordetailsonthereconciliationtableofopeningbalanceandclosingbalanceofprovisionforlossesoffinancialinstrument.
4.Exposuretocreditriskandconcentrationofcreditrisk
TheCompany’screditriskisprimarilyattributabletocashandbankbalances,bankfinancialinvestmentsnotesreceivableandaccountreceivable.
TheCompanydepositsinfinancialinstitutionswithrelativelyhighcreditlevels.SomebankacceptancebillsheldbytheCompanyareacceptedandpaidbysmallandmediumfinancialinstitutions.Inaddition,inordertoimprovetheefficiencyofcapitaluse,theCompanyentrustsidlefundstobanksforfinancialinvestment.ThemanagementoftheCompanybelievesthat,basedonthecurrentoperatingstatusofdomesticbanks,cashandbankbalances,notesreceivableandbankfinancialinvestmentsarenotcurrentlyfacingseriouscreditrisks.Ifthereisaseriousunfavorabledifferentiationinthebank'screditsysteminthefuture,theCompanywillmakeadjustmentsinduecourse.
TheCompanyperformscreditassessmentoncustomerswhousescreditsettlementonacontinuousbasis.Basedonthecustomer'sfinancialstatus,pastcredithistoryandotherfactors,assessthecustomer'screditrating,andmonitorthebalanceofaccountsreceivabletocontrolcreditriskexposure.Forcustomerswithbadcreditrecords,theCompanywillusewrittenreminders,shortenorcancelcreditperiods,andreducecredittransaction
amountstoensurethatthereisnomajorriskofbaddebts.TheCompanyconductstransactionswithrecognizedandcreditworthycustomers,andthecreditriskiscentralizedandmanagedonthebasisofcustomers.AsofJune30,2021,theCompanyhasacertainconcentrationofcreditrisk,and35.89%ofaccountsreceivablewasduefromthefivelargestcustomersoftheCompany.TheCompanyheldnocollateralorothercreditenhancementonbalanceofreceivables.ThemaximumamountofexposuretocreditriskoftheCompanyisthecarryingamountofeachfinancialassetonthebalancesheet.(II)LiquidityriskTheCompanycontinuestomonitorshort-termandlong-termfundingneedstoensurethatsufficientcashreservesaremaintained.Atthesametime,theCompanycontinuouslymonitorscompliancewiththeloanagreementtoensurethatthecreditlineobtainedfromcommercialbankscanmeetshort-termorlong-termfundingneeds.Whennecessary,theCompanycanimplementequityfinancing.
AsofJune30,2021,theundiscountedcontractualcashflowsoftheCompany’sfinancialliabilitieslistedbymaturitydateareshowninthefollowingtable(Unit:RMB):
Financialliabilitiesclassifiedbasedonremainingtimeperiodtillmaturity
Items
ClosingbalanceWithin1year1-3yearsOver3yearsTotalShort-termborrowings(Includeinterest)523,812,457.25523,812,457.25Notespayable1,856,484,983.841,856,484,983.84Accountspayable2,491,675,800.212,491,675,800.21Otherpayables228,347,075.23228,347,075.23Non-currentliabilitiesduewithinoneyear(Includeinterest)
1,034,381,809.451,034,381,809.45Long-termborrowings(Includeinterest)949,241,904.65949,241,904.65Long-termpayables(Includeinterest)9,196,945.2119,859,829.2562,098,461.1591,155,235.61Subtotal6,143,899,071.19969,101,733.9062,098,461.157,175,099,266.24(Continued)
ItemsOpeningbalance
Within1year1-3yearsOver3yearsTotalShort-termborrowings(Includeinterest)384,529,024.72384,529,024.72Notespayable1,238,574,463.731,238,574,463.73Accountspayable2,279,661,755.972,279,661,755.97Otherpayables270,888,400.58270,888,400.58Non-currentliabilitiesduewithinoneyear(Includeinterest)
132,518,381.28132,518,381.28Long-termborrowings(Includeinterest)1,781,690,487.831,781,690,487.83Long-termpayables(Includeinterest)6,417,433.1020,548,394.7270,534,422.7597,500,250.57
Subtotal4,312,589,459.381,802,238,882.5570,534,422.756,185,362,764.68(III)MarketRisk
1.InterestRateRisk
TheCompany’sinterestriskrelatesmainlytobankborrowings.TheCompany’scashflowinterestrisksarisefromfloatinginterestoffinancialliabilities,andfairvalueinterestrisksarisefromfixed-rateoffinancial
liabilities.TheCompanydeterminestheproportionoffixed-ratefinancialliabilitiesandfloatinginterestratefinancialliabilitiesbasedonthemarketenvironment.AsofJune30,2021,theCompany'sinterest-bearingdebtaccountedforasmallproportion,andtheinterestrateriskitfacedwaswithinacontrollablerange.TheCompanycontinuestomonitorthelevelofinterestrates.TheCompanycontinuestomonitorthelevelofinterestrates.
2.Foreigncurrencyrisk
TheCompany'sproductionbasesandsalesmarketsaredistributedindevelopedanddevelopingcountries,includingtheUnitedStates,theEuropeanUnion,Japan,India,Mexico,etc.ThebusinessvolumesettledinEurosandU.S.dollarshasacertainproportion,andtheexchangerateriskisrelativelyhigh.Basedoninternalriskcontrolpolicies,theCompany'smanagementhastakenseveralmeasurestodealwithexchangeraterisks:a.pre-judgmentbasedonthetrendofexchangeratechanges,timelysettlementofforeignexchangereceiptsordelayedsettlementofforeignexchange;b.Carryoutoverseasfinancingthroughdomesticguaranteesandoverseasloanstohedgeforeigncurrencymonetaryassetsandcontrolnetriskexposure;c.Carryoutforwardexchangesettlementandforeigncurrencyswapbusinesstolockinexchangerates.AsofJune30,2021,pleasereferto“monetaryitemsinforeigncurrencies”ofnotestofinancialstatementsfordetailsinforeigncurrencyfinancialassetsandliabilities.X.DisclosureofFairValues
1.Fairvaluesoftheassetsandliabilitiesmeasuredatfairvalueattheendoftheperiod
Unit:RMBItems
FairvalueasofthebalancesheetdateLevel1Level2Level3TotalI.Recurringfairvaluemeasurement--------(I)Held-for-tradingfinancialassets5,529,209.66110,387,809.10100,000,000.00215,917,018.76Financialassetsmeasuredatfairvaluethroughprofitorloss
5,529,209.66110,387,809.10100,000,000.00215,917,018.76
(1)Debtinstrumentinvestments89,524,312.14100,000,000.00189,524,312.14
(2)Derivativefinancialassets5,529,209.6620,863,496.9626,392,706.62Totalamountofassetsconstantlymeasuredattheirfairvalues
5,529,209.66110,387,809.10100,000,000.00215,917,018.76(II)Held-for-tradingliabilities4,625,536.623,100,848.007,726,384.62Derivativefinancialliabilities4,625,536.623,100,848.007,726,384.62Totalamountofliabilitiesconstantlymeasuredattheirfairvalues
4,625,536.623,100,848.007,726,384.62II.Non-constantmeasurementatfairvalues--------
2.Basisfordeterminingthemarketpriceofitemsunderfirstlevelconstantlyandnon-constantlymeasurementatfairvalue.Thefairvalueoffuturescontractsismeasuredattheexchange'sopenmarketquotes.
3.Itemsundersecondlevelconstantlyandnon-constantlymeasurementatfairvalue,valuationtechniqueadopted,andqualitativeandquantitativeinformationofimportantparametersThefairvalueofforwardforeignexchangecontractsandbankfinancingproductsismeasuredbasedonthevaluationamountofthehostbankortheforwardforeignexchangerateannouncedbytheBankofChina.Bankfinancingproductsaremeasuredbasedonthevaluationamountoftheissuerormanager.
4.Itemsunderthirdlevelconstantlyandnon-constantlymeasurementatfairvalue,valuationtechniqueadopted,andqualitativeandquantitativeinformationofimportantparametersIfthefairvalueinformationisinsufficient,thebankfinancingproductsaremeasuredatcostonbehalfofthefairvalue.XI.Relatedpartyrelationshipsandtransactions
1.ParentCompany
ParentCompany
Placeofregistration
BusinessnatureRegisteredcapital
HoldingproportionovertheCompany
Votingrightproportion
overtheCompanySanhuaHoldingGroupCo.,Ltd
ZhejiangIndustrialInvestment660millionyuan50.12%50.12%Remarksontheparentcompany:
AsofJune30,2021,SanhuaHoldingGroupCo.,Ltd.directlyholds29.78%oftheCompany'sshares,andindirectlyholds20.68%ofthesharesthroughitssubsidiaries,foratotalof50.46%oftheshares.ThefinalcontrollersoftheCompanyareMrZhangDaocai,MrZhangYaboandZhangShaobo.
2.InformationabouttheCompany'ssubsidiaries
Pleaserefertonotesoffinancialstatementsaboutinterestonotherentities.
3.JointventuresandassociatesoftheCompany
PleaserefertonotestofinancialstatementsfordetailsontheCompany’ssignificantjointventuresandassociates.DetailsofotherjointventuresorassociatescarryingoutrelatedpartytransactionswiththeCompanyincurrentperiodorinprecedingperiodbutwithbalanceincurrentperiodareasfollows:
JointventuresorassociatesRelationshipswiththeCompanyQingdaoSanhuajinlifengMachineryCo.,LtdAssociatesZhongshanXuanyiPipeManufacturingCo.,Ltd.Associates
Otherremarks
JointventuresorassociatesAbbreviationofassociateQingdaoSanhuaJinlifengMachineryCo.,LtdQSJMZhongshanXuanyiPipeManufacturingCo.,Ltd.ZXPM
4.OtherrelatedpartiesoftheCompany
OtherrelatedpartiesRelationshipswiththeCompanyZhejiangSanhuaLvnengIndustryGroupCo.,LtdShareholdersandunderthesamecontroloftheparentCompanyHangzhouTongchanMachineryCo.,Ltd.underthesamecontroloftheparentCompanyHangzhouSanhuaResearchInstituteCo.,Ltd.underthesamecontroloftheparentCompanyZhejiangSanhuaZhichengRealEstateDevelopmentCo.,Ltd.underthesamecontroloftheparentCompanyZhejiangHaoyuanTechnologyCo.,Ltd.underthesamecontroloftheparentCompanyNingboFuldaIntelligentTechnologyCo.,LtdunderthesamecontroloftheparentCompanyWuhuAldaTechnologyCo.,Ltd.SubsidiaryofaCompanywithsharesheldbytheCompanyHangzhouFormostMaterialTechnologyCo.,LtdSubsidiaryofaCompanywithsharesheldbytheCompanyOtherremarks
JointventuresorassociatesAbbreviationofassociateSanhuaHoldingGroupCo.,Ltd.SHGZhejiangSanhuaLvnengIndustryGroupCo.,LtdZSGEHangzhouTongchanMachineryCo.,Ltd.HTMHangzhouSanhuaResearchInstituteCo.,Ltd.HSRIZhejiangSanhuaZhichengRealEstateDevelopmentCo.,Ltd.ZSZRZhejiangHaoyuanTechnologyCo.,Ltd.ZHTNingboFuldaIntelligentTechnologyCo.,LtdNFITWuhuAldaTechnologyCo.,Ltd.WATHangzhouFormostMaterialTechnologyCo.,LtdHFMT
5.Relatedpartytransactions
(1)Purchaseandsaleofgoods,renderingandreceivingservicesPurchaseofgoodsandreceivingofservices
Unit:RMBRelatedparties
Contentoftransaction
Currentperiodcumulative
Approvedtransaction
limit
Whetheritexceedsthetransactionlimit
PrecedingperiodcomparativeZXPMMerchandise12,581,552.3435,000,000.00No5,023,870.90
WATMerchandise55,752.213,000,000.00No4,743.36HSRIMerchandise14,303.48QSJMMerchandise1,656,061.81ZHTMerchandise1,063,598.21HTMMerchandise57,168.14Saleofgoodsandrenderingofservices
Unit:RMBRelatedpartiesContentoftransactionCurrentperiodcumulativePrecedingperiodcomparativeSHGMerchandise52,256.96674,800.00QSJMMerchandise203,134.2179,420.08HSRIMerchandise101,089.74182,978.26ZSZRMerchandise9,734.51WATMerchandise1,350.007,230.77
(2)Relatedpartyguarantees
TheCompanyasaguaranteedparty
Unit:RMBGuarantorGuaranteedamountCommencementdateMaturitydateWhethertheguaranteeismatureSHG1,430,000,000.00February27,2020October25,2022NoSHG44,000,000.00December24,2019December23,2021NoRemarksofrelatedpartyguaranteesTheinformationlistedinthetabledoesnotincludetherelatedguaranteewithintheconsolidationscope,nordoesitincludethecompletedrelatedguarantee,inwhichthesecondamountisinUSdollars.
(3)Keymanagement’semoluments
Unit:RMBItemsCurrentperiodcumulativePrecedingperiodcomparativeKeymanagement’semoluments6,196,143.934,127,788.78
(4)Otherrelatedpartytransactions
Unit:RMBRelatedpartiesContentoftransaction
Currentperiod
cumulative
Precedingperiod
comparativeZHTRentalfee,propertymanagement6,034,039.91628,351.19
fee,waterandelectricityfee,servicefeeZSGE2,631,152.031,032,369.03
HSRI397,622.42226,684.14
HTMPurchaseequipment24,450,210.365,112,554.76SHG
Rentalincome,propertymanagementincome,waterandelectricityincome,serviceincome
3,848,329.724,313,221.66HSRI518,602.95717,369.20ZSGE427,216.07720,433.64WAT383,092.22197,707.74HFMT236,607.29966,272.27ZHT62,433.76
HTM22,852.39
6.Relatedpartytransactions
(1)Receivables
Unit:RMBItemsRelatedparties
ClosingbalanceOpeningBalanceBookbalanceProvisionforbaddebtsBookbalanceProvisionforbaddebtsAccountsreceivableSHG68,948.533,447.43180,000.009,000.00AccountsreceivableWAT271,957.5013,597.88376,293.5418,814.68AccountsreceivableHFMT267,366.2313,368.31AccountsreceivableHSRI114,263.135,713.1618,514.60925.73AccountsreceivableQSJM79,541.663,977.0826,973.191,348.66OtherreceivableSHG20,000.001,000.0020,000.001,000.00Othernon-currentassets(equipmentprepayment)
HTM4,175,349.249,122,291.82
(2)Payables
Unit:RMBItemsRelatedpartiesClosingbalanceOpeningBalanceAccountspayableZXPM5,254,603.611,072,110.11AccountspayableHTM1,297,118.103,883,247.79AccountspayableHSRI266,150.00266,150.00AccountspayableZHT256,549.65ContractliabilitiesWAT1,518.94AdvancesreceivedNFIT10,000,000.0010,000,000.00
OtherpayablesHFMT100,000.00100,000.00
XII.Share-basedpayment
1.Overallinformation
√Applicable□Notapplicable
Unit:shareTotalequityinstrumentsgrantedincurrentperiodTotalequityinstrumentsexercisedincurrentperiod4,596,150Totalequityinstrumentsretiredincurrentperiod395,070Therangeofexercisepriceofstockoptionsissuedbythecompanyattheendoftheperiodandtheremainingtermofthecontract
TheadjustedgrantpriceofstockappreciationrightsisRMB4.34,whichwillbeunlockedinbatcheswithin12monthsafter36monthsfromthegrantdate.
Therangeofexercisepricesofotherequityinstrumentsattheendoftheperiodandtheremainingcontractuallife
2018RestrictedStockIncentivePlan:TheadjustedrestrictedstockgrantpriceisRMB4.34,whichwillbeunlockedinbatcheswithin12monthsafter36monthsafterthegrantdate.2020RestrictedStockIncentivePlan:TheadjustedrestrictedstockgrantpriceisRMB7.11,whichwillbeunlockedinbatcheswithin12months,24months,and36monthsfromthegrantdate.Otherremarks
(1)Restrictedstockandstockappreciationrightincentiveplanimplementedin2018InSeptember2018,theCompanyimplementedarestrictedstockandstockappreciationrightincentiveplanforcoreemployees.Thenumberofrestrictedstocksgrantedwas10.33millionshares,thenumberofstockappreciationrightsgrantedwas355,000shares,andthegrantpricepersharewasRMB8.37.ThegrantdatewasSeptember18,2018,anditwillbeunlockedyearbyyearinbatchesataratioof30%:30%:40%.
InMay2019,theCompanyimplementedthe2018equitydistribution.Accordingtothemethodsstipulatedinthe"2018RestrictedStockIncentivePlan"and"2018StockAppreciationRightsIncentivePlan",theexercisepriceandquantityoftheunderlyingstocksinvolvedwereadjustedaccordingly.Aftertheadjustment,thenumberofrestrictedstocksgrantedwas13.429millionshares.Thenumberofstockappreciationrightsgrantedwas461,500shares,andthegrantpricepersharewasRMB6.25.InJune2020,theCompanyimplementedthe2019equitydistribution.InSeptember2020,thecompanyimplementedthe2020semi-annualequitydistribution.Accordingtothemethodsstipulatedinthe"2018RestrictedStockIncentivePlan"and"2018StockAppreciationRightsIncentivePlan",theexercisepriceandquantityoftheunderlyingstocksinvolvedwereadjustedaccordingly.Aftertheadjustment,thenumberofrestrictedstocksgrantedwas17.4577millionshares.Thenumberofstockappreciationrightsgrantedwas599,950shares,andthegrantpricepersharewasRMB4.59.
InApril,2021,theCompanyimplementedthe2020equitydistribution.Accordingtothemethodsstipulatedinthe"2018RestrictedStockIncentivePlan"and"2018StockAppreciationRightsIncentivePlan",theexercisepriceoftheunderlyingstocksinvolvedwereadjustedaccordingly.Aftertheadjustment,thegrantpricepersharewasRMB4.34.
(2)Restrictedstockincentiveplanimplementedin2020
InFebruary2020,theCompanyimplementedarestrictedstockincentiveplanforcoreemployees.Amongthem,thenumberofrestrictedstocksgrantedwas12.045millionshares,andthegrantpricepersharewasRMB9.85,ThegrantdatewasFebruary24,2020,anditwillbeunlockedyearbyyearinbatchesataratioof30%:30%:40%.InJune2020,theCompanyimplementedthe2019equitydistribution.InSeptember2020,thecompanyimplementedthe2020semi-annualequitydistribution.Accordingtothemethodstipulatedinthe"2020RestrictedStockIncentivePlan",theexercisepriceandquantityoftheunderlyingstocksinvolvedwereadjustedaccordingly.Aftertheadjustment,thenumberofrestrictedstocksgrantedwas15.6585millionshares,andthegrantpricepersharewasRMB7.36.InApril2021,theCompanyimplementedthe2020equitydistribution.Accordingtomethodsstipulatedinthe“2020RestrictedStockIncentivePlan”,theexercisepriceoftheunderlyingstocksinvolvedwereadjustedaccordingly.Aftertheadjustment,thegrantpricepersharewasRMB7.11.
2.Equity-settledshare-basedpayment
√Applicable□Notapplicable
Unit:RMBDeterminationmethodforgrant-datefairvalueofequityinstruments
Calculatedbasedontheclosingpriceofthestockonthegrantdateminusthegrantpriceoftherestrictedstock.Determinationmethodforthenumberofequityinstrumentsexpectedtovest
[Note]Reasonsforsignificantdifferencebetweentheestimatesincurrentperiodandprecedingperiod
NotapplicableCapitalreserveaccumulatedduetoequity-settledshare-basedpayment123,513,933.28Totalexpensesarisingfromequity-settledshare-basedpayment26,270,045.10OtherremarksNote:In2018,thecompanyinitiallygranted10.33millionrestrictedstockstoincentiveobject.Later,itwasadjustedto
17.4577millionsharesduetotheannualdistributionofequityin2018andtheannualdistributionofequityin2019.In2020,thecompanyinitiallygranted12.045millionrestrictedstockstoincentiveobject.Later,itwasadjustedto17.4577millionsharesduetotheannualdistributionofequityin2019.Thenumberisthebase,itwillbeunlockedyearbyyearinbatchesataratioof30%:30%:40%.TheCompanyestimatesthenumberofexercisableequityinstrumentsonthefollowingbasis:theCompany'soperatingperformancecanmeetthetarget,thefuturevoluntaryturnoverrateoftheincentiveobjectsis0%,andtheperformanceappraisallevelisaboveC(theunlockingcoefficientis1)
3.Cash-settledshare-basedpayment
√Applicable□Notapplicable
Unit:RMBDeterminationmethodforthefairvalueofliabilityassumedbytheCompanyandtobecalculatedonthebasisofsharesorotherequityinstruments
Calculatedbasedontheclosingpriceofthestockonthebalancesheetdateafterdeductionoftheadjustedstockappreciationrightgrantprice.Accumulatedliabilitiesarisingfromcash-settledshare-basedpaymentin6,556,955.90
liabilitiesTotalexpensesarisingfromcash-settledshare-basedpayment224,115.46
XIII.Commitmentsandcontingencies
1.Significantcommitments
SignificantcommitmentsexistingonthebalancesheetdateNosignificantcommitmentsmatterneedstobedisclosedbytheCompany
2.Contingencies
(1)IfnosignificantcontingentmattertobedisclosedbytheCompany,itshouldalsobenotedaccordinglyNosignificantcontingentmatterneedstobedisclosedbytheCompany.XIV.Othersignificantevents
1.Segmentinformation
(1)Basisforreportablesegmentsandtheaccountingpolicy
ReportablesegmentsareidentifiedbasedonthestructureoftheCompany’sinternalorganization,managementrequirementsandinternalreportingsystem,etc.,andidentifiedthereportablesegmentsbasedonproducts.
(2)Financialinformationofthereportingsegments
Unit:RMBItems
Refrigerationandair-conditioningelectricalpartsbusiness
Autopartsbusiness
Inter-segment
elimination
TotalTotaloperatingrevenue5,563,260,796.572,110,820,965.127,674,081,761.69Totaloperatingcost4,015,609,936.551,586,201,543.075,601,811,479.62Totalassets15,837,690,723.095,169,808,588.8121,007,499,311.90Totalliabilities8,540,678,732.801,922,189,366.2310,462,868,099.03
XV.Notestoitemsofparentcompanyfinancialstatements
1.Accountsreceivable
(1)Disclosureofaccountsreceivablebycategories
Unit:RMB
Category
ClosingbalanceOpeningbalanceBookbalance
Provisionforbaddebt
Carryingamount
Bookbalance
Provisionforbaddebt
CarryingamountAmount
ProportionAmount
Accruedproportion
Amount
Proportion
Amount
AccruedproportionReceivableswithprovisionmadeonanindividualbasis
306,020,
208.90
58.76%
306,020,2
08.90
568,926,1
07.65
77.05%
568,926,10
7.65
Including:
Receivableswithprovisionmadeonacollectivebasis
214,764,
608.71
41.24%
10,738,2
30.44
5.00%
204,026,3
78.27
169,453,2
30.80
22.95%
8,472,661.54
5.00%
160,980,56
9.26
Including:
Total
520,784,
817.61
100.00%
10,738,2
30.44
2.06%
510,046,5
87.17
738,379,3
38.45
100.00%
8,472,661.54
1.15%
729,906,67
6.91
Provisionmadeonanindividualbasis:
Unit:RMBName
ClosingbalanceBookbalanceProvisionforbad
debt
Accruedproportion
AccruedreasonSanhuaInternationalSingaporePte.Ltd115,562,468.94Sanhua(Vietnam)CompanyLimited,etc.68,788,408.36AmericanInvestmentFundILLC33,911,688.82ZhejiangSanhuaCommercialRefrigerationControlsCo.,Ltd
28,141,509.72ZhejiangSanhuaAutomotiveComponentsCo.,Ltd15,601,946.79Othersubsidiaries44,014,186.27Total306,020,208.90----Provisionmadeonacollectivebasis:
Unit:RMB
Name
ClosingbalanceBookbalanceProvisionforbaddebtAccruedproportionWithin1year214,764,608.7110,738,230.445.00%Total214,764,608.7110,738,230.44--IftheProvisionforbaddebtofaccountsreceivableisaccruedinaccordancewiththegeneralexpectedcreditlossmodel,pleaserefertothedisclosureofotherreceivablestodisclosetherelevantinformationabouttheProvisionforbaddebt:
□Applicable√NotApplicable
Disclosurebyaging
Unit:RMBAgingClosingbalanceWithin1year(including1year)520,784,817.61Total520,784,817.61
(2)Provisionforbaddebtaccrued,recoveredorreversedincurrentperiod
Provisionforbaddebtaccruedincurrentperiod:
Unit:RMBCategoryOpeningbalance
Changedamountofthecurrentperiod
ClosingbalanceAccrued
Recoveredorreversed
WriteoffOthersReceivableswithprovisionmadeonacollectivebasis
8,472,661.542,265,568.9010,738,230.44Total8,472,661.542,265,568.9010,738,230.44
(3)Top5debtorswiththelargestaccountsreceivablebalances
Unit:RMBNameClosingbalance
Proportiontothetotalbalanceofaccountsreceivable
ProvisionforbaddebtattheendoftheperiodSanhuaInternationalSingaporePte.Ltd115,562,468.9422.19%Sanhua(Vietnam)CompanyLimited,etc.68,788,408.3613.21%TheThird63,886,602.4012.27%3,194,330.12TheForth58,929,632.2111.32%2,946,481.61AmericanInvestmentFundILLC33,911,688.826.51%Total341,078,800.7365.50%
2.Otherreceivables
Unit:RMBItemsClosingbalanceOpeningbalanceDividendsreceivable1,800,000.00Otherreceivables394,689,965.06348,897,078.11Total396,489,965.06348,897,078.11
(1)Dividendsreceivable
1)Categoriesofdividendsreceivable
Unit:RMBProject(orinvestedentity)ClosingbalanceOpeningbalanceWuhanSanhuaRefrigerationPartsCo.,Ltd1,800,000.00Total1,800,000.00
(2)Otherreceivables
1)Otherreceivablescategorizedbynature
Unit:RMBOtherreceivablescategorizedbynatureClosingbalanceOpeningbalancePrincipalandinterestofcapitalassistancetosubsidiaries379,004,607.58329,063,840.37RefundofVATreceivable1,962,668.328,536,537.99Guaranteedeposit9,827,285.0010,381,285.00Others4,271,529.691,224,031.39Total395,066,090.59349,205,694.752)Provisionforbaddebt
Unit:RMBProvisionforbaddebt
Phase1Phase2Phase3
TotalNext12?monthexpectedcreditlosses
Lifetimeexpectedcreditlosses(creditnotimpaired)
Lifetimeexpectedcreditlosses(creditimpaired)BalanceonJanuary1,202143,389.30265,227.34308,616.64BalanceincurrentperiodonJanuary1,2021
————————Provisionmadeincurrent144,570.13144,570.13
periodReversedincurrentperiod77,061.2477,061.24BalanceonJune30,2021187,959.43188,166.10376,125.53Lossprovisionsforsignificantchangesinbookbalancesincurrentperiod
□Applicable√NotApplicable
Disclosurebyaging
Unit:RMBAgingClosingbalanceWithin1year(including1year)187,959.431to2years9,172.302to3years46,972.80Over3years132,021.00Total376,125.53
3)Top5debtorswiththelargestotherreceivablesbalances
Unit:RMBDebtors
NatureofreceivablesClosingbalanceAging
Proportiontothetotalbalanceofotherreceivables
ProvisionforbaddebtattheendoftheperiodShaoxingShangyuSanliCopperIndustryCo.,Ltd
Financialaid
55,067,200.00Within1year13.94%WuhuSanhuaAuto-controlComponentsCo.,Ltd
Financialaid
46,231,000.00Within1year11.70%Sanhua(Jiangxi)Self-controlComponentsCo.,Ltd.
Financialaid
45,318,000.00
Within1year
11.47%
WuhuSanhuaRefrigerationFittingsCo.Ltd
Financialaid
44,969,167.21
Within1year
11.38%
ZhongshanSanhuaRefrigerationComponentsCo.,Ltd
Financialaid
40,033,000.00
Within1year
10.13%
Total--231,618,367.21--58.62%
3.Long-termequityinvestments
Unit:RMBInvestees
ClosingbalanceOpeningbalanceBookbalance
Provisionforimpairment
CarryingamountBookbalance
Provisionforimpairment
Carryingamount
Investmentsinsubsidiaries
6,113,625,945.186,113,625,945.184,515,044,723.754,515,044,723.75Investmentsinassociatesandjointventures
15,705,401.9215,705,401.9213,501,505.6213,501,505.62Total6,129,331,347.106,129,331,347.104,528,546,229.374,528,546,229.37
(1)Investmentsinsubsidiaries
Unit:RMBInvestees
Openingbalance(Carryingamount)
Changedamountofthecurrentperiod
Closingbalance(Carryingamount)
ClosingbalanceofprovisionforimpairmentInvestmentsincreased
Investmentsdecreased
Provisionforimpairment
OthersZhejiangSanhuaAutomotiveComponentsCo.,Ltd1,994,138,976.825,959,855.742,000,098,832.56Sanhua(Hangzhou)MicroChannelHeatExchangerCo.,Ltd.644,441,139.103,326,620.50647,767,759.60ZhejiangSanhuaClimate&ApplianceControlsGroupCo.,Ltd320,278,269.013,069,749.10323,348,018.11SanhuaInternationalInc.308,285,328.31265,399.02308,550,727.33SanhuaInternationalSingaporePte.Ltd664,644,511.071,221,079.62665,865,590.69WuhuSanhuaAuto-controlComponentsCo.,Ltd151,271,932.66316,125.36151,588,058.02Sanhua(Jiangxi)Self-controlComponentsCo.,Ltd.93,367,388.93186,714.2093,554,103.13XinchangSitongElectricalandMechanicalCo.,Ltd46,645,756.62382,252.1347,028,008.75ZhejiangSanhuaCommercialRefrigerationControlsCo.,Ltd68,290,894.371,581,000,000.001,649,290,894.37ZhejiangSanhuaTradingCo.,Ltd53,745,007.56928,812.7254,673,820.28ChangzhouRancoReversingValveCo.,Ltd62,499,656.1621,183.0062,520,839.16HangzhouLeaderwayElectronicsCo.,Ltd51,017,554.191,109,051.2852,126,605.47ShaoxingShangyuSanliCopperIndustryCo.,Ltd32,527,587.10212,854.2032,740,441.30ZhongshanSanhuaAirconditioningRefrigerationComponentsCo.,Ltd5,082,444.18112,028.645,194,472.82WuhanSanhuaRefrigerationPartsCo.,Ltd4,240,191.30163,152.064,403,343.36ZhongshanSanhuaRefrigerationComponentsCo.,Ltd5,899,010.73207,963.546,106,974.27SuzhouSanhuaAir-ConditionerPartsCo.,Ltd8,669,075.6498,380.328,767,455.96Total4,515,044,723.751,598,581,221.436,113,625,945.18
ZhejiangSanhua
(2)Investmentsinassociatesandjointventures
Investees
Openingbalance(Carryingamount)
ChangedamountofthecurrentperiodInvestments
increased
Investmentsdecreased
Investment
incomerecognizedunderequitymethod
Adjustmentinothercomprehensiveincome
Changesinotherequity
Cashdividend/profitdeclaredfordistribution
IntelligentProvision
Provisionfor
forimpairment
I.JointventuresII.AssociatesGuochuangEnergyInternetInnovationCenter(Guangdong)Co.,Ltd.
1,525,252.7615,260.42ChongqingTainuoMachineryCo.,Ltd.
9,396,904.733,344,529.441,500,000.00NanchangSanhuaJinlifengMachineryCo.,Ltd.
1,517,138.95-1,763.92NingboJinlifengMachineryCo.,Ltd
1,062,209.18345,870.36QingdaoSanhuaJinlifengMachineryCo.,Ltd.
0.00
Xinchangzhejiangenergysanhuacomprehensiveenergyco.Ltd
0.00
Subtotal13,501,505.623,703,896.301,500,000.00Total13,501,505.623,703,896.301,500,000.00
4.OperatingrevenueandOperatingcost
Unit:RMBItems
CurrentperiodcumulativePrecedingperiodcomparativeRevenueCostRevenueCostMainoperations2,466,694,440.921,937,346,462.242,025,861,982.701,525,914,788.36Otheroperations191,238,142.54161,701,041.5391,350,119.9290,836,693.41Total2,657,932,583.462,099,047,503.772,117,212,102.621,616,751,481.77
5.Investmentincome
Unit:RMBItems
Currentperiod
cumulative
PrecedingperiodcomparativeInvestmentincomefromlong-termequityinvestmentsunderequitymethod3,703,896.301,922,776.38Investmentincomefromlong-termequityinvestmentsundercostmethod1,800,000.0016,058,323.76Gainsondisposaloflong-termequityinvestments-13,099,711.84Investmentincomeofbankfinancingproducts1,260,477.523,214,184.92Gainsandlossesonsettlementoffuturescontracts13,415,131.42-5,205,759.36Gainsandlossesonsettlementofforeignexchangecontract5,575,206.59-1,711,629.28Incomeoffundusingfee6,369,877.539,817,132.15Total32,124,589.3610,995,316.73XVI.Supplementaryinformation
1.Non-recurringprofitorlossincurrentperiod
√Applicable□NotApplicable
Unit:RMBItemsAmountRemarksGainsorlossondisposalofnon-currentassets-1,623,182.25Governmentgrantsincludedinprofitorloss(excludingthosecloselyrelatedtooperatingactivitiesoftheCompany,satisfyinggovernmentpoliciesandregulations,andcontinuouslyenjoyedwithcertainquantity/quotabasedoncertainstandards)
64,034,111.05
Gainsonchangesinfairvalueofheld-for-tradingfinancialassets,derivativefinancialassets,
60,752,561.20
Inordertoavoidrawmaterialpricerisksandexchangeraterisks,theCompanyanditssubsidiarieshave
held-for-tradingfinancialliabilitiesandderivativefinancialliabilities,andinvestmentincomefromdisposalofheld-for-tradingfinancialassets,derivativefinancialassets,held-for-tradingfinancialliabilities,derivativefinancialliabilitiesandotherinvestment,excludingthosearisingfromhedgingbusinessrelatedtooperatingactivities
carriedoutderivativesinstrumentsbusiness,includingfuturescontractsandforeignexchangeforwardcontracts.FromJanuarytoJune2021,thefuturescontractsincomeisRMB19.8287million,andforeignexchangeforwardcontractsincomeisRMB40.9239million.AndfromJanuarytoJune2020,thefuturescontractsincomeisRMB1.0049million,andforeignexchangeforwardcontractslossisRMB24.4147million.Therefore,theamountofnon-recurringprofitandlossitemsproducedlargefluctuationsbetweenthefirsthalfofthetwoyears.Meanwhile,theexchangelossfromJanuarytoJune2021isRMB
51.1292million,anditisRMB45.6796millionfrom
JanuarytoJune2020.Accordingto“theNo.1ExplanatoryAnnouncementonInformationDisclosureforCompaniesOfferingTheirSecuritiestoPublic-Non-recurringProfitorLoss”,exchangegainsandlossesarerecurringgainsandlosses,andfuturesandforwardcontractsgainsandlossesarenon-recurringgainsandlosses.Othernon-operatingrevenueorexpendituresexcepttheaboveitems
891,333.20Otherprofitorlosssatisfyingthedefinitionofnon-recurringprofitorloss
702,064.60Less:Enterpriseincometaxaffected20,201,305.62Non-controllinginterestaffected446,016.26Total104,109,565.92--Foritemsdefinedasnon-recurringprofitorlossaccordingto“theNo.1ExplanatoryAnnouncementonInformationDisclosureforCompaniesOfferingTheirSecuritiestoPublic-Non-recurringProfitorLoss”,non-recurringprofitorlossitemslistedinthesaiddocumentdefinedasprojectofrecurringprofitorloss,specifythereason
□Applicable√NotApplicable
2.ROEandEPS
Profitofthereportingperiod
WeightedaverageROE
EPS(RMB/share)BasicEPSDilutedEPSNetprofitattributabletoshareholdersofordinaryshares8.04%0.230.23Netprofitattributabletoshareholdersofordinarysharesafterdeductingnon-recurringprofitorloss
7.02%0.200.20
3.Others
1.CalculationprocessofweightedaverageROE
(1)Weightedaveragenetassets
ChangediteminnetassetsAmount
Weightedby
month
Weightedaveragenet
assetsNetassetsattributabletoshareholdersofordinarysharesatthe
ofperiod
10,064,794,519.576/610,064,794,519.57Netprofitattributabletoshareholdersofordinaryshares823,881,221.703/6411,940,610.85CashdividendannouncedinApril-895,454,593.002/6-298,484,864.33CashdividendannouncedinApril,includingthereduction
beginningof
restrictedsharesrepoobligations
5,553,275.002/61,851,091.67ConverteddifferenceinForeignCurrencyStatements-17,246,635.523/6-8,623,317.76Equity-settledshare-basedpayment(phase1)2,407,500.543/61,203,750.27Equity-settledshare-basedpayment(phase2)23,862,544.563/611,931,272.28Netassetsincreasedfromunlockingofrestrictedstockincentiveon
ofJune
18,2021
26,512,714.500/6-
FairvalueofconvertiblebondequitywhichissuedonJune1,2021409,766,556.241/668,294,426.04Netassetsattributabletoshareholdersofordinarysharesattheend
Juneof
period
10,444,077,103.5910,252,907,488.59
(2)WeightedaverageROE
ItemsSymbol
Currentperiod
cumulativeNetassetsattributabletoshareholdersofordinarysharesoftheparentcompanyA
823,881,221.70Non-recurringprofitorlossattributabletoshareholdersofordinarysharesoftheparentcompany
B
104,109,565.92
Netprofitattributabletoshareholdersofordinarysharesoftheparentcompanyafterdeductingnon-recurringprofitorloss
C=A-B
719,771,655.78
WeightedaveragenetassetsD
10,252,907,488.59
WeightedaverageROEE=A/D8.04%
WeightedaverageROEafterdeductingnon-recurringprofitorlossF=C/D7.02%
2.CalculationprocessofBasicEPSandDilutedEPS
(1)BasicEPS
ItemsSymbol
Currentperiod
cumulativeNetprofitattributabletoshareholdersofordinarysharesoftheparentcompanyA823,881,221.70Non-recurringprofitorlossattributabletoshareholdersofordinarysharesoftheparentcompanyB104,109,565.92Netprofitattributabletoshareholdersofordinarysharesoftheparentcompanyafterdeductingnon-recurringprofitorloss
C=A-B719,771,655.78
TotalsharesatthebeginningofperiodD3,591,601,468
Numberofrestrictedstock(Afterincreasebytransferringandrepo)E
17,616,950
Weightedaveragenumberofordinarysharesoutstanding(excludingrestrictedstock)F=D-E3,573,984,518BasicEPSG=A/F
0.23
BasicEPSafterdeductingnon-recurringprofitorlossH=C/F
0.20
(2)DilutedEPS
ItemsSymbol
CurrentperiodcumulativeNetprofitattributabletoshareholdersofordinarysharesoftheparentcompanyA823,881,221.70EffectofconvertiblebondassumedconversiononnetprofitB9,082,166.27NetprofitattributabletoshareholdersofordinarysharesoftheparentcompanyafterdilutionC=A+B832,963,387.97Non-recurringprofitorlossattributabletoshareholdersofordinarysharesoftheparentcompanyD104,109,565.92Netprofitattributabletoshareholdersofordinarysharesoftheparentcompanyafterdeductingnon-recurringprofitorloss
E=C-D728,853,822.05Weightedaveragenumberofordinarysharesoutstanding(excludingrestrictedstock)F3,573,984,518WeightedaveragenumberofordinarysharesdilutedbyequityincentiverestrictedsharesG10,280,289WeightedaveragenumberofordinarysharesdilutedbyconvertiblebondsH23,201,856WeightedaveragenumberofordinarysharesoutstandingafterdilutionI=F+G+H3,607,466,663DilutedEPSJ=C/I0.23DilutedEPSafterdeductingnon-recurringprofitorlossK=E/I0.20