Guangdong Dongfang Precision Science & Technology Co., Ltd.
Semi-Annual Report 2021
July 2021
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the
directors, supervisors and senior manage ment of Guangdong Dongfang Precision Science &
Technology Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the
contents of this Report are true, accurate and complete and free of any misrepresentations,
misleading statements or material omissions, and collectively and individually accept legal
responsibility for such contents.
Tang Zhuolin, the Company’s legal representative, Shao Yongfeng, the Company’s Chief
Financial Officer, and Yao Bin, the Head of the Company’s Accounting Department
(equivalent to Financial Manager) hereby guarantee that the financial statements carried in
this Report are truthful, accurate and complete.
Apart from the following director, other directors of the Company attended in person the
board meeting for the approval of this Report.
The name of director Reasons for not
The post of director who Consignee’s
who did not attend in attending the meeting in
did not attend in person name
person person
Mai Zhirong Independent Director Personal Work He Weifeng
For possible risks with respect to the Company, please refer to “X Risks Faced by the
Company and Countermeasures” of “Part III Management Discussion and Analysis” herein.
And investors are kindly advised to read through the aforesaid contents.
The Company has no semi-annual dividend plan, either in the form of cash or stock.
This Report has been prepared in Chinese and translated into English. Should there be
any discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 7
Part III Manage ment Discussion and Analysis ............................................................................. 10
Part IV Corporate Governance ...................................................................................................... 40
Part V Environme ntal and Social Responsibilities ....................................................................... 43
Part VI Significant Events ............................................................................................................... 46
Part VII Share Changes and Shareholder Information ............................................................... 53
Part VIII Preference Shares ............................................................................................................ 62
Part IX Corporate Bonds ................................................................................................................ 63
Part X Financial Report .................................................................................................................. 64
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Documents Available for Reference
1. The financial statements signed and sealed by the Company’s legal representative, Chief Financial Officer
and the person-in-charge of the financial organ.
2. All the originals of the Company’s announcements and documents that were disclosed to the public during
the Reporting Period on the media designated by the CSRC for information disclosure.
3. The 2021 Semi-Annual Report carrying the signature of the legal representative.
4. The documents above are lodged in the Securities Department of the Company.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Definitions
Term Definition
Guangdong Dongfang Precision Science & Technology Co., Ltd. and its
Dongfang Precision, or the “Company”
consolidated subsidiaries, except where the context otherwise requires
The corrugated box packaging machinery division of Guangdong Dongfang
Dongfang Precision (China)
Precision Science & Technology Co., Ltd.
Fosber Group Fosber S.p.A.
Fosber Asia Guangdong Fosber Intelligent Equipment Co., Ltd.
Fosber America Fosber America, Inc.
Fosber Tianjin Fosber Machinery (Tianjin) Co., Ltd.
Tirua Group/Spain Tirua Tirua Group Industrial, S.L.
Tirua America Tirua America Inc.
Italy QCorr QuantumCorrugated S.r.l.
Dongfang Precision (Europe)/Italy EDF EDF Europe S.r.l.
Dongfang Precision (Netherland) Dong Fang Precision (Netherland) Cooperatief U.A.
Dongfang Precision (HK) Dong Fang Precision (HK) Limited
Parsun Power Suzhou Parsun Power Machine Co., Ltd.
Suzhou High-Tech Zone Jinquan Business Management Partnership (Limited
Suzhou Jinquan
Partnership)
Shunyi Investment Suzhou Shunyi Investment Co., Ltd.
Yinglian Digital Foshan Yinglian Digital Printing Equipment Co., Ltd.
Jaten Robot Guangdong Jaten Robot & Automation Co., Ltd.
Hainan Yineng Hainan Yineng Investment Co., Ltd.
Dongfang Digicom Dongfang Digicom Technology Co., Ltd.
Dongfang Digicom (Guangdong) Dongfang Digicom Technology (Guangdong) Co., Ltd.
Corrugated board is a multi-layer paper-bonding object composed of at least one
sandwich layer of wavy medium (commonly known as "corrugated paper",
Corrugated board
"corrugated medium paper", "corrugated paper medium" and "corrugated base
paper") and one layer of cardboard (also known as "liner board").
Corrugated box is a rigid paper container made of corrugated boards through die
Corrugated box cutting, indenting, nailing or gluing. Corrugated box is one of the most widely
used packaging containers in modern business and trade.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Corrugated box printing and packaging machinery include corrugated box
printing and packaging line and stand-alone products that integrates pre-feeding,
printing, grooving, die cutting, forming and packaging functions in whole or in
part, which is highly functionally integrated, highly automated and highly
Corrugated box printing and packaging machinery
technical, can save the capital and manpower investment, reduce workers'
workload and improve the production efficiency of box manufacturers, and
requires equipment manufacturers to be highly competent in design,
technological innovation, assembly and finishing of parts.
Corrugator lines are assembly lines comprising corrugating, gluing,
agglutinating, bundle breaking, dimension board cutting and output processes,
which are used to produce and process corrugated boards.
A corrugator line has two independent process sections as the wet section and
the dry section. The wet section, composed of the base paper stand, auto splicer,
preheat preregulator, single-face corrugator, feeding bridge, glue machine and
Corrugator lines
double facer, is used to make corrugated based paper into three-layer, five-layer
and seven-layer corrugated boards of different corrugated combinations. The dry
section, composed of the rotary shear, slitter indenter, cut-off knife and stacker,
is used to slit, indent, cut off and stack corrugated boards as ordered.
Corrugator lines are key production equipment for corrugated board and box
manufacturers.
Pre-printing and post-printing intelligent automatic packaging machinery refers
to equipment that is compatible with the corrugated box printing line or
Pre-printing and post-printing intelligent automatic
stand-alone products and can provide functions related to pre-printing and
packaging machinery
post-printing processes of corrugated box printing and packaging. It includes the
pre-feeder, stripper conveyor, intelligent stacker and folder gluer.
Outboard motors are a kind of detachable power units that are mounted on the
Outboard motors
stern plate of a boat to drive the boat to sail.
General utility small gasoline motors are a kind of thermo-dynamic machinery
of 20kW power or less with a wide range of applicability. It is characterized by
small size, light weight and easy operation, and is usually used as a power
General utility small gasoline motors engine for a variety of terminal products. By the structure of engine and
principle of work, general utility small gasoline motors can be divided into
two-stroke general utility small gasoline motors and four-stroke general utility
small gasoline motors.
CSRC China Securities Regulatory Commission
SZSE, or the “Stock Exchange” Shenzhen Stock Exchange
Expressed in the Chinese currency of Renminbi, expressed in tens of thousands
RMB yuan, RMB yuan’0,000
of Renminbi
The “Reporting Period” or “Current Period” The period from 1 January 2021 to 30 June 2021
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Dongfang Precision Stock code 002611
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 广东东方精工科技股份有限公司
Abbr. 东方精工
Company name in English (if
Guangdong Dongfang Precision Science & Technology Co., Ltd
any)
Abbr. (if any) Dongfang Precision
Legal representative Tang Zhuolin
II Contact Information
Board Secretary Securities Representative
Name Zhou Wenhui Zhu Hongyu
25/F, Hisense Southern Building, 1777 25/F, Hisense Southern Building, 1777
Chuangye Road, Nanshan District, Chuangye Road, Nanshan District,
Office address
Shenzhen City, Guangdong Province, Shenzhen City, Guangdong Province,
China China
Tel. 0755-36889712 0755-36889712
Fax 0755-36889822 0755-36889822
Email address ir@vmtdf.com ir@vmtdf.com
III Other Information
1. Contact information of the company
Whether the company's registered address, company office address and its postal code, company website and e -mail address have
changed during the reporting period.
□ Applicable √ Not applicable
The company's registered address, company office address and its postal code, the company's website and e-mail address remain
unchanged during the reporting period, which can be found in the 2020 Annual report.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
2. Information disclosure and location.
Whether the information disclosure and location have changed during the reporting period.
□ Applicable √ Not applicable
The name of the information disclosure newspaper selected by the company, the URL of the website designated by the CSRC that
publishes the semi-annual report, and the location where the semi-annual report lodges remain unchanged during the reporting period,
which can be found in the 2020 Annual report.
IV Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2021H1 2020H1 change (%)
Operating revenue (RMB yuan) 1,400,558,964.18 1,177,491,225.13 18.94%
Net profit attributable to the listed
191,117,520.46 127,198,462.09 50.25%
company’s shareholders (RMB yuan)
Net profit attributable to the listed
company’s shareholders before exceptional 156,022,832.56 81,018,675.86 92.58%
gains and losses (RMB yuan)
Net cash generated from/used in operating
206,023,828.25 29,409,409.32 600.54%
activities (RMB yuan)
Basic earnings per share (RMB yuan
0.14 0.08 75.00%
/share)
Diluted earnings per share (RMB yuan
0.14 0.08 75.00%
/share)
Weighted average return on equity (%) 4.72% 2.89% 1.83%
30 June 2021 30 June 2020 Change (%)
Total assets (RMB yuan) 6,478,830,955.64 6,323,236,687.05 2.46%
Equity attributable to the listed company’s
3,885,981,229.85 4,158,538,499.75 -6.55%
shareholders (RMB yuan)
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB yuan
Item 2021H1 Note
Gain or loss on disposal of non-current assets (inclusive of
244,619.17
impairment allowance write-offs)
Government grants through profit or loss (exclusive of government
grants given in the Company’s ordinary course of business at fixed 6,712,327.65
quotas or amounts as per the government’s uniform standards)
Gain or loss on fair-value changes on held-for-trading and
derivative financial assets and liabilities & income from disposal
of held-for-trading and derivative financial assets and liabilities 31,537,269.94
and other debt investments (exclusive of the effective portion of
hedges that arise in the Company’s ordinary course of business)
Non-operating income and expenses other than the above -24,078.31
Less: Income tax effects 2,960,044.59
Non-controlling interests effects (net of tax) 415,405.96
Total 35,094,687.90 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public —Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part III Management Discussion and Analysis
I Principal Activities of the Company in the Reporting Period
Dongfang Precision focuses on the main business of "high-end intelligent equipment", regarding "intelligent manufacturing" as its strategic vision. Intelligent
corrugated packaging machinery is the Company's core strategic business. Currently, Dongfang Precision has grown into a supplier of corrugated packaging
machinery with comprehensive strength leading the globe. Besides, it is endeavouring to become an overall solution provider for intelligent plants by virtue of
intelligent and digitalisation transformation. Parsun Power, a subsidiary of the Company that focuses on the field of outboard motors, is a domestic advanced supplier
specialising in hydrodynamic equipment.
The Company's principal activities/products are divided into four categories, namely corrugator lines, corrugated box printing and packaging machinery, overall
solutions for intelligent plants, and outboard motors. The details are shown in the following table:
Principal activity/product Corresponding business entity Main functions and application fields
Corrugator lines are key production equipment for corrugated board and box manufacturers, which
Subsidiary Fosber Group are used to process and produce corrugated boards of different specifications. They are widely
Corrugator lines
Subsidiary Fosber Asia used by corrugated board manufacturers (primary plant + secondary plant) in the corrugated
packaging industry chain.
Corrugated box printing and packaging machinery is key equipment for the production of
Dongfang Precision (China)
Corrugated box printing and corrugated boxes, which is used to process corrugated boards into corrugated boxes of different
Subsidiary Dongfang Precision
packaging machinery
(Europe) specifications according to customer needs. It is widely used by all kinds of enterprises that
process and produce corrugated boxes (primary plant + secondary plant + tertiary plant) in the
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Principal activity/product Corresponding business entity Main functions and application fields
corrugated packaging industry chain.
Corrugated box printing and packaging machinery includes the corrugated box printing line,
individual machine units for corrugated box printing, as well as pre-printing and post-printing
intelligent and automatic machinery like pre-feeders, stripper conveyors, intelligent stackers, and
folder gluers.
An enterprise- and industry-level industrial Internet platform for downstream customers in the
corrugated packaging industry will be created to help the customers realise a digital and
Overall solutions for network-based equipment layer, connect business, cash, and information flows, and promote
Subsidiary Dongfang Digicom
intelligent plants comprehensive digitalisation of the production and operation layer, as well as data-based
reasonable management and decision-making, in order to promote intelligent transformation, and
enhance enterprise competitiveness in all respects.
Outboard motors are a kind of detachable power units that are mounted on the stern plate of a boat
to drive the boat to sail. They can be applied to boats shorter than 24m in inland rivers, lakes, and
Outboard motors Subsidiary Parsun Power coastal waters. Currently, the equipment has been widely used for civil short-distance
transportation/fishing, leisure sports like yachts/motorboats, and military use/maritime
affairs/flood control and rescue.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
In the first half of 2021, the global pandemic eased, the world economy gradually recovered, and the overall
development trend improved. China's economy continued its strong recovery, and its foreign trade maintained
upward momentum. Under the strong leadership of the Board of Directors and management team, Dongfang
Precision took active actions and seized opportunities to promote the steady and sound development of its
business in all aspects.
(I) Operating results continued to grow, and operating revenue growth accelerated
In the first half of 2021, the Company's main business and operating results continued the growth trend since
2020. Changes in the major indicators of operating results are shown in the following table:
H1 2021 H1 2020 Change (%)
Operating revenue (RMB yuan) 1,400,558,964.18 1,177,491,225.13 18.94%
Net profit attributable to the listed company’s
191,117,520.46 127,198,462.09 50.25%
shareholders (RMB yuan)
Net profit attributable to the listed company’s
shareholders before exceptional gains and losses 156,022,832.56 81,018,675.86 92.58%
(RMB yuan)
Net cash generated from/used in operating activities
206,023,828.25 29,409,409.32 600.54%
(RMB yuan)
During the Reporting Period, the Company's domestic business segment showed strong momentum for
revenue growth, driving the overall operating revenue growth to accelerate compared to the previous half year; its
overseas business segment continued to develop steadily, with operating quality and profit margin steadily
improving.
Since the beginning of the year, prices of raw materials such as steel products in China have fluctuated. The
Company actively took measures during the Reporting Period to strengthen cooperation with core suppliers and
moderately adjust the selling prices of some products. As a result, the overall gross profit margin of domestic
business entities remained stable.
(II) Analysis of main business operations
1. Domestic business segment: The overall growth momentum was strong
(1) Corrugator lines of subsidiary Fosber Asia: Significant growth was achieved
In the first half of 2021, subsidiary Fosber Asia took full advantage of development opportunities and
increased its business development efforts in the domestic and Southeast Asian markets. Coupled with the impact
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
of the low performance base under the pandemic in the same period last year, its operating performance grew
significantly year-on-year. With an operating revenue of RMB150 million, 4.6 times that of the same period in H1
2020, the company created the best first-half performance level in its history.
The intelligent corrugator line "Pro-Line" launched by Fosber Asia is well received by industrial customers
from both China and the Southeast Asian market. During the Reporting Period, order shipments grew significantly.
The company's sales in the domestic market contributed to more than 80% of its operating revenue in the first half
of the year, with a particularly impressive growth rate. Moreover, cooperation between Fosber Asia and
downstream leading enterprises in the corrugated packaging industry proved fruitful. Fosber Asia successfully
completed the fulfilment of high-end production line orders from customers leading the downstream industries.
The first group of domestic industrial customers all repurchased the products in the first half of the year. Fosber
Asia also reached strategic cooperation with Hengsheng Packaging under Xinsheng Group. Furthermore, progress
was made in the expansion of the Southeast Asian market. Production line orders or equipment orders from
industrial customers in countries such as Thailand and India were fulfilled.
Since the first quarter, Fosber Asia has been in a state of full production and sale. With ample orders in hand,
its production has been scheduled until the end of the year. Capacity utilisation remains efficient. Based on actual
needs and future planning, during the Reporting Period, Fosber Asia made efforts to improve the utilisation rate
and operational efficiency of existing production capacity on the one hand, and on the other hand initiated and
steadily promoted plans for land acquisition and new capacity development.
Fosber Asia's high-end corrugator line, the Pro-Line series, is developed based on the needs of customers in
China and Southeast Asia, and is produced in Nanhai District, Foshan. The localisation rate of parts and
accessories stabilises at around 90%. Fosber Asia has established a stable supply chain system in China. Taking
full advantage of China's industry chain and supply chain with the most complete industrial categories and the
most complete supporting facilities in the world, Fosber Asia is able to provide industrial customers in the
Chinese and Southeast Asian markets with high-quality high-end corrugator lines made in China.
(2) Outboard motors of subsidiary Parsun Power: The sales of outboard motors grew rapidly, and
operating benefits continued to be released
In the first half of 2021, benefiting from the continuous growth of overseas countries' demand for aquatic
recreation and entertainment under the pandemic, as well as the trend of global manufacturing orders shifting to
China as the pandemic continued, orders and shipments of subsidiary Parsun Power for outboard motors and
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
general utility small gasoline motors grew rapidly year-on-year, driving the operating revenue and net profit of
Parsun Power to both increase by more than 50% year-on-year.
Parsun Power actively seized market opportunities. While intensifying marketing and promotion efforts
targeted at domestic customers, it increased R&D investment and improved its product structure. During the
Reporting Period, the year-on-year growth rate of Parsun Power's domestic market revenue exceeded 60%, and
the sales revenue of its medium- and large-horsepower outboard motors grew by more than 40% year-on-year.
In early July, the 115-horsepower gasoline outboard motor independently developed by Parsun Power was
successfully rolled out. The power and horsepower of this model are by far the largest among all domestic
self-owned brands. The successful rollout of the 115 model broke the monopoly of foreign brands such as the
United States and Japan in the large-horsepower gasoline outboard motor market, filling the gap in the R&D and
manufacturing of high-power gasoline outboard motors in China.
Parsun Power entered into cooperation with Swedish diesel outboard motor brand OXE Marine in August
2020 on the sale of OXE large-horsepower diesel outboard motor products in China. In the first half of 2021, a
sales breakthrough was successfully achieved. It is expected that sales will continue to grow in the second half of
the year.
During the Reporting Period, Parsun Power actively improved the level of operations management. In the
first half of the year, it continued to introduce outstanding talent in R&D, sale, production, and operation. As a
result, the comprehensive strength of the team was further enhanced, and the development foundation was further
consolidated. Additionally, by implementing lean management, as well as improving operational efficiency and
capacity utilisation, Parsun Power achieved steady improvement in shipment quality, providing support for the
shipment growth of medium- and large-horsepower models.
In the first half of 2021, Parsun Power steadily promoted the R&D of electric outboard motors and its
business development in the domestic military market, with positive results achieved. The company will continue
to strengthen the development and promotion of large-horsepower models and electric outboard motors, and
increase investment in military market development.
(3) Corrugated box printing and packaging machinery of Dongfang Precision (China): Domestic
market revenue growth accelerated
In the first half of 2021, due to the impact of international shipping factors, the export revenue of Dongfang
Precision (China)'s corrugated box printing and packaging machinery declined, but at the same time, its domestic
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
market revenue increased rapidly year-on-year. Cooperation with large group customers in the downstream
industries such as Shanying Intl, MYS, and HXPP was steadily promoted. Moreover, the machinery was
successfully sold for the first time in several emerging market countries along the "Belt and Road". The sales and
shipments of technical support services, spare products, and spare parts maintained good and stable growth
momentum.
2. Overseas business segment: The trend of steady development continued, and operating quality
steadily improved
The Company's overseas business is operated by Fosber Group, a wholly owned subsidiary of the Company
(its subsidiaries include Fosber America, Italy QCorr, and Spain Tirua), and Dongfang Precision (Europe),
another wholly owned subsidiary.
The above overseas business entities are mainly located in Europe and the United States. All of them
implement localised management and operation. Their product design, development, production, and
manufacturing are carried out in Europe and the United States; their main products are corrugator lines and
corrugated packaging and printing machinery that are used to process and produce corrugated packaging products.
Corrugated packaging is a rigid consumer product in European and American countries and regions. The
operations and development of the Company's overseas business entities are not negatively affected by
international trade disputes.
In the management and control of overseas subsidiaries, the Company has integrated modern business
management means, such as corporate governance and the operation of the shareholders' meeting, the Board of
Directors, and the Supervisory Committee, the management and control of strategies and finance, and the
management of decentralisation and authorisation of authority. Based on the Company's actual situation, after
years of exploration and cooperation, a set of effective methods for managing and controlling overseas
subsidiaries has been formed. On the basis of "mutual respect and mutual trust", with an open mind to seek
common ground while reserving differences, the Company has achieved adequate management and control of
overseas subsidiaries, effectively reducing the risks caused by "globalisation and internationalisation". In the past
five years since 2016, the overseas segment has developed steadily overall, with operating revenue and profit
increasing year after year.
In the first half of 2021, the vaccination rate in developed countries such as the United States and Europe
kept increasing, countries successively lifted lockdowns, and their monetary and fiscal policies remained loose.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
The overseas business segment benefited from the above-mentioned positive changes in the macroeconomic
environment. Subsidiaries Fosber Group and Dongfang Precision (Europe) achieved steady growth in order sales,
as well as steady improvement in operating quality and internal synergy.
From 2019 to 2020, Fosber Group completed the acquisitions of Spain Tirua, a manufacturer of high-end
corrugating and pressure rolls with a history of nearly one century, and relevant business assets of Agnati, an
Italian manufacturer of corrugator lines with a glorious history. A series of post-investment integration,
operational adjustment, and other measures implemented after the acquisitions bore fruits in the first half of 2021:
The operating results of Spain Tirua and Italy QCorr both improved from the same period last year; the order
sales of Spain Tirua's corrugating roll products grew year-on-year; positive progress was also made in the order
sales of Italy QCorr's Quantum high-speed corrugator lines; the expense ratios of the two companies were
effectively controlled, and their operational efficiency was improved.
3. Firm promotion of "digitalisation and intellectualisation" strategy
In 2020, the Company deemed "digitalisation and intellectualisation" as a vital part of its five-year strategies,
endeavouring to promote the digitalisation and intellectualisation transformation of corrugated printing and
packaging machinery.
Subsidiary Dongfang Digicom is an institution that undertakes the Company's overall solutions for intelligent
plants. In the first half of 2021, Dongfang Digicom checked, sorted, and analysed the Company's actual situation
and its "digitalisation and intellectualisation" planning, surveyed the solution demand and development of
customers in the downstream industries, further clarified and defined the specific direction and path of action, and
steadily promoted the development of solution-related products. At the same time, it quickly promoted team
building, clarified the organisational structure and post setting, and vigorously introduced outstanding talent.
In the future, Dongfang Digicom will, by taking advantage of the Company's presence in the whole industry
chain of corrugated packaging machinery, product library with the most complete and richest product
specifications and market positioning in the industry, technologies and accumulated practices of
information-based production management systems in the industry, as well as experience related to corrugated
packaging machinery in the past three decades, create an enterprise- and industry-level industrial Internet platform
through new-generation information technologies, such as 5G, the Internet of Things (IoT), edge computing, big
data, cloud computing, and artificial intelligence (AI), to promote comprehensive digitalisation of the production
and operation layer, and boost the digital and intelligent upgrading and transformation of customers in the
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
corrugated packaging industry.
(III) Epitaxial business segment: New industrial development opportunities were created to facilitate
the Company's higher-level development
In 2020, the Company set up a wholly owned subsidiary, Yineng Investment. With industries as the body and
capital as the wings, Yineng Investment is positioned as an institution to undertake the Company's epitaxial
business segment. Guided by the Company's strategic plan, it focuses on industries related to the main business of
Dongfang Precision and fully participates in the industries supported by the "14th Five-Year Plan" by virtue of the
industrial advantages. For equity investment, it focuses on areas such as high-end manufacturing and big
consumption, and aims at enterprises with extensive industrial development opportunities and favourable
industrial advantages. It will obtain good investment returns and seek industrial synergy at the same time to create
new industrial development opportunities and facilitate the Group's sound development.
During the Reporting Period, the main progress of the Company's epitaxial business segment is as follows:
1. Increase in holdings of Fosber Asia
In the first half of 2021, the Company reached an agreement with minority shareholders of Fosber Asia on
the acquisition of the minority shareholders' 32.8% equity interests in Fosber Asia. After the completion of the
acquisition, the equity interests in Fosber Asia held by Dongfang Precision increased from 56.4% to 89.2%.
Fosber Asia has entered the fast lane of development since 2020. With the successive launch of its localised
high-end intelligent corrugator line products and the continuous growth of its market shares in China and
Southeast Asia, Fosber Asia is expected to achieve favourable growth in operating results over the next few years.
Through this transaction, Fosber Asia's contribution ratio to the net profit attributable to the listed company’s
shareholders in Dongfang Precision's consolidated statements will be increased. More importantly, the rapid
growth of Fosber Asia's own operating results will be able to improve the Company's performance to a greater
extent, driving the Company's revenue and profit to achieve favourable growth.
The transaction price of this equity acquisition is approximately RMB36.12 million. The transaction does not
constitute a related-party transaction or a major asset restructuring, and has no significant influence on the
Company's current operating results or financial position. Therefore, the involuntary disclosure standards
stipulated in relevant laws and regulations, as well as rules and normative documents of departments are not met.
2. Investment progress in high-end manufacturing
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
In the first half of 2021, the Company completed two equity investments in the high-end manufacturing
industry, namely:
(1) Investment in Guizhou Aerospace Xinli Technology Co., Ltd. with approximately 3.86% equity interests
obtained
Guizhou Aerospace Xinli Technology Co., Ltd. (hereinafter referred to as "Aerospace Xinli") is affiliated to
China Aerospace Science and Industry Corporation. Its main business is the R&D, production, and manufacturing
of high-end alloy steel castings and forgings, non-ferrous castings, structural parts, and new aviation and
aerospace materials which are widely used in nuclear energy, nuclear power, aviation, aerospace, and other fields.
It is a domestically renowned manufacturer of nuclear-level parts and components qualified for national defense
equipment research and production.
With great R&D strength, Aerospace Xinli has completed the R&D and localisation of dozens of alloy
materials and key parts for nuclear energy equipment. A number of its key materials and parts are the first of its
kind in China. Aerospace Xinli has also achieved import substitution. The key materials and parts of nuclear
safety machinery and equipment used in domestic pressurised water nuclear power plants are all produced by
Aerospace Xinli. Aerospace Xinli participated in the first-phase technology R&D of the International
Thermonuclear Experimental Reactor (ITER) and delivered the first batch of magnet support products in the
world, making China the first country to deliver products in batches to the ITER project.
(2) Investment in Sichuan Dajin Stainless Steel Co., Ltd. with approximately 2.29% equity interests obtained
Sichuan Dajin Stainless Steel Co., Ltd. (hereinafter referred to as "Dajin Stainless Steel"), whose main
business is the precision machining and manufacturing of key aero-engine parts and components (such as engine
casings and ring parts), is a professional supplier of aero-engine parts and components. It is also involved in many
fields such as aerospace missiles and rail transit.
Dajin Stainless Steel has all the qualifications for the production and manufacturing of military products. Its
core products are key aero-engine parts and components with the characteristics of structural complexity, high test
difficulty, and high tolerability. Occupying a leading position in the segment, Dajin Stainless Steel is the most
professional and largest manufacturer of aero-engine ring parts among private-owned enterprises.
(3) Impact on the Company
In the above two projects, one target company is engaged in nuclear energy and nuclear power while the
other is engaged in aviation and aerospace, both of which are national strategic science and technology industries
18
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
and industries supported by the state during the "14th Five-Year Plan" period. The two companies focus on the
manufacturing of key high-end parts and components. With core R&D technology advantages, a certain business
scale, as well as strong sustainable development capability and profitability, they have become leading enterprises
in their respective industries.
The Company's investment in the above two high-end manufacturing enterprises is in line with the
positioning and purpose of the Company's epitaxial business; it helps the Company to enter relevant high-end
manufacturing areas, create industrial development opportunities, develop and grow in the national aerospace,
aviation, nuclear energy, and nuclear power industries, as well as share revenue during the rapid growth and
development of the two enterprises.
None of the two equity investments constitutes a related-party transaction or a major asset restructuring, or
has any significant influence on the Company's current operating results or financial position. Therefore, the
involuntary disclosure standards stipulated in relevant laws and regulations, as well as rules and normative
documents of departments are not met.
3. Investment progress in big consumption-related areas
In the first half of 2021, the Company contributed RMB50 million to the establishment of Jiaxing Fengrong
Equity Investment Partnership (Limited Partnership) as one of the limited partners. The partnership invested
specifically in Hangzhou SF Intra-city Industrial Co., Ltd. (hereinafter referred to as "SF Intra-city").
SF Intra-city is the largest independent third-party real-time logistics service provider in China. It is
positioned as a high-quality, efficient, and full-scenario independent third-party distribution platform intended to
create a zero-distance life circle relying on a comprehensive real-time logistics network; it is a majority-owned
subsidiary of SF Holding (stock code: 002352). In June and July 2021, SF Holding announced that SF Intra-city's
application for the initial public offering of overseas listed foreign shares on the Hong Kong Stock Exchange had
been accepted by the CSRC, and that the application materials for listing on the Main Board of the Stock
Exchange of Hong Kong Limited had been submitted to the Hong Kong Stock Exchange.
The target of this investment is a leader in the domestic big consumption market. It has great comprehensive
strength, and has initiated an IPO in Hong Kong. The risks in this investment are controllable, and the certainty of
obtaining returns is high.
In February 2021, the Company disclosed the Announcement on Joint Investment with Professional
Investment Intermediaries, fulfilling the relevant information disclosure obligation regarding its capital
19
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
contribution to the establishment of the partnership. The investment does not constitute a related-party transaction
or a major asset restructuring, and has no significant influence on the Company's current operating results or
financial position.
(IV) Capital operation: Active actions were taken to improve value creation capability and capability
of shareholder return
1. Spin-off listing of subsidiary Parsun Power was initiated
In June 2021, according to the Company's development plan of the third five-year strategic development
period (2018-2022), in order to promote the better and faster development of subsidiary Parsun Power's outboard
motors business, the management of the Company initiated the preliminary preparation for the spin-off of Parsun
Power and its listing on the Shenzhen Stock Exchange after being approved and authorised by the Board of
Directors.
The spin-off listing of subsidiary Parsun Power will not only help the Company better focus on the intelligent
corrugated packaging machinery business, and realise the upgrading and transformation of the Company's core
business to "an overall solution provider for intelligent plants in the corrugated packaging industry", but also
facilitate Parsun Power's full use of the direct financing function in the capital market to further expand,
strengthen, and refine its core strategic business, that is, the outboard motors business, with a view to becoming a
leading enterprise in the domestic outboard motors industry, and better serving the goals of national high-end
equipment localisation, independence, controllability, safety, and efficiency during the "14th Five-Year Plan"
period.
The Company disclosed the Announcement on Authorising the Management of the Company to Initiate
Preliminary Preparation for the Spin-off and Domestic Listing of the Subsidiary on 8 June 2021.
2. Under the premise of controllable risks, active management of idle funds was carried out to increase
the return on net assets
In the first half of 2021, upon the approval and authorisation of the General Meeting and the Board of
Directors, in accordance with the Policy for Securities Investment Management of the Company, the Company
and subsidiary Yineng Investment conducted securities investment with carrying temporarily idle funds on the
premises that legal compliance, the Company's need of routine operating funds and fund safety were ensured and
that the Company's development of major business would not be affected. The active management of idle funds is
conducive to improving capital utilisation efficiency, raising the return on net assets, and enhancing value creation
20
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
capability.
3. The repurchase of nearly RMB1 billion shares was successfully completed, and all the 212 million
repurchased shares were retired
In the first half of 2021, the Company continued to promote the share repurchase plan, which was
successfully completed on 2 June 2021. From 10 July 2020 to 2 June 2021, through centralized bidding, the
Company repurchased 212 million shares accumulatively, accounting for 14% of its total share capital, and paid
approximately RMB990 million in total (exclusive of transaction costs). The actual implementation of the share
repurchases conformed to the provisions of the repurchase plan.
The 212 million shares repurchased from the secondary market were retired in full to reduce the Company's
registered capital. On 11 June 2021, as confirmed by the Shenzhen branch of China Securities Depository and
Clearing Corporation Limited, the retirement of all the 212 million shares was completed, after which, the total
share capital changed from 1,544 million shares to 1,332 million shares.
The completion of the share repurchase and the retirement of the repurchased shares fully reflect the
confidence of the Company's Board of Directors and management in the Company's future development and their
high recognition of the Company's value. Upon the share retirement, the total share capital decreased, and the
earnings per share improved. As a result, the value of unit shares will increase, and the returns to shareholders will
thereby increase.
After the retirement of the repurchased shares, the net profit attributable to the parent in the first half of 2021
increased by 50.25% year-on-year, while the basic earnings per share in the same period increased by 75%
year-on-year. The increase in earnings per share was significantly larger than the increase in profit.
4. Equity incentives were steadily promoted to stimulate the endogenous power for development
In the first half of 2021, the Company steadily promoted the restricted share incentive plan launched in 2020
as planned.
In February 2021, the Company granted incentive shares to 18 core elites and managers. 4.24 million shares
were granted accumulatively.
In June 2021, the exercise and unlocking for public trading of a total of 4.31 million incentive shares in the
first unlocking period of the incentive plan were completed, involving 37 awardees.
Through the continuous promotion of equity incentives, the Company will stimulate the endogenous power
for sustainable and healthy development, "stabilise the team, boost the morale, gather talent and improve business
21
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
performance". The connection of the core elites' own interests to the Company's future business growth and
capability of shareholder return will be deepened, which is conducive to the Company's continual improvement of
operating results and value creation capability.
II Core Competitiveness Analysis
(I) Comprehensive industrial chain layout and the most complete and richest product specifications in
the corrugated packaging equipment industry
Dongfang Precision has vertically scaled up its footprint in the industrial chain of segments of corrugated box
printing and packaging machinery business after listing. Its main businesses have been expanded from the
corrugated box printing and packaging machinery business at the beginning of listing to production equipment
covering all processes in the production and processing chain of corrugated paper from production, printing, die
cutting, gluing, to packaging, such as corrugating rolls, corrugator lines, fully automatic printing lines and
individual machine units for corrugated boxs, and pre-printing and post-printing automatic equipment. Dongfang
Precision extends its footprint in the whole industrial chain of segments and offers equipment covering all
procedures of the intelligent corrugated packaging line.
The integrity of the industrial chain layout of Dongfang Precision is reflected in the following two aspects:
(1) The whole industrial chain layout covers all processes of the chain of printing, packaging, production,
and processing of corrugated paper. Basically, all equipment and products in the industrial chain of corrugated
box printing and packaging machinery are reached. Dongfang Precision embraces series products, such as Tirua
corrugating rolls-Fosber corrugator lines-Quantum corrugator lines-Dongfang Precision (China) corrugated box
printing and packaging line and individual machine units-Dongfang Precision (Europe) corrugated box printing
and packaging machinery and pre-printing and post-printing automatic equipment.
22
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Schematic diagram of whole industrial cha in layout of corrugated box printing
and packaging machinery business of Dongfang Precision
(2) Dongfang Precision features a product library with the most complete and richest product specifications
and market positioning in the industry. For example, Dongfang Precision provides products with dozens of
specifications and positioning in the corrugated box printing and packaging machinery segment, far more than
those of its rivals, thus satisfying the diversified equipment demands of customers worldwide.
(II) Leading technology, stable & reliable products
Fosber Group, a business entity of corrugator lines under the intelligent corrugated packaging machinery
segment of the Company, is a major supplier of high-end corrugator lines in the global market. It is one of the two
largest companies in high-speed and wide corrugator lines. Fosber Group takes a leading position in Europe and
North America, because of simplified design, stable performance, low failure rate, and high intellectualization.
Moreover, corrugated box printing and packaging machinery under the intelligent corrugated packaging
machinery business of Dongfang Precision are characterized by advanced design concepts, high functional
integration, high automation, and outstanding overall performance. Especially, the Company occupies a leading
position in the market regarding the overall performance in operating stability, service life, printing quality,
efficiency, width, and registering accuracy.
The outboard motor R&D team of Parsun Power, a wholly-owned subsidiary of Dongfang Precision, has
relevant product and technology R&D experience for nearly two decades. Its products obtain the EU CE mark, the
US EPA certification, and the CCS certification of the China Classification Society (CCS). It was the first drafter
of the Technical Conditions for Gasoline Engine of Outboard Motors (JB/T11875-2014) for the domestic
outboard motors industry. Parsun Power has been recognized as a national high-tech enterprise for several
consecutive years and won China Machinery Industry Science and Technology Award II twice.
23
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(III) Practices of information-based production management systems in the industry and leading
industrial Internet technology
The PRO series information-based intelligent production management system for corrugator lines, developed
through integrating sensor, AI, VR, and 3D modelling and combined data on the development, production, and
technical support of corrugator lines accumulated for years, has the following functions: First, real-time
monitoring of production data of corrugator lines and real-time monitoring of the production process and Kanban
management are realized through more than 200 sensors in various types installed to corrugator lines. Second, the
performance and cost of the production line are analysed based on data to help the customer make production
decisions. Third, with the "self-diagnosis system", the machine can identify abnormal production data and
automatically diagnose issues, based on the production data collected in a real-time manner and the preset
algorithm, searching for an optimal solution in the database. Fourth, the remote-control system enables real-time
monitoring and remote control of equipment is monitored in a real-time manner. Based on the "big data analysis
system" module, sensors are utilized to collect data like temperature, humidity, heat, and wrinkles in real time
during paper board production. The logical relationship between data is studied with preset algorithms. Results are
output to constantly reinforce the effectiveness of production process control.
The system epitomizes Fosber Group's application and practices of the industrial Internet and acts as a
business card of the corrugator lines of Fosber. The overall technical level is leading across the globe.
Schematic diagram of PRO series information-based intelligent production management system of Fosber Group
Fosber Group vigorously practices the industrial Internet model and has realized the self-learning and
intelligent production of machines based on the combination of the computer and the Internet, big data, and
algorithms. The self-learning and intelligent production of machines include four phases, that is, visibility
(intelligent identification), transparency (intelligent analysis), predictive capacity (intelligent prediction), and
adaptability (artificial intelligence-based solutions). At present, Fosber has completed the functional design of the
24
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
above four phases.
Schematic diagram of the phase of industrial Internet technology application of Fosber Group
(IV) International brand and extensive industry influence
Dongfang Precision's intelligent corrugated packaging machinery features stable quality. Dongfang Precision
Printer, Fosber's Lines, Tirua Corrugating Rolls, and Quantum Lines are well-known and influential.
The Company's intelligent corrugated packaging machinery is known in the industry for its high performance,
stability, and reliability. In addition, the Company offers excellent technical support and after-sales services,
favourable to gain brand premium.
It has become an influential enterprise in the industry, as evidenced by its honours like the "Top 500 Private
Manufacturers of China", the "Champion in Single Aspect", and the "Leader in Industry Segment".
(V) Excellent customer resources with long-term and stable partnership
End customers have raised higher and stricter requirements for product quality, delivery timeliness, and
sustainable and long-term cooperation, along with the Company's shift of the business model from the
manufacturing of a single type of products to the provision of integrated and overall solutions. The Company has
been exerting more efforts for R&D innovation and improving product and service quality so as to establish
long-term and stable strategic partnerships with famous brands at home and abroad.
Particularly, the Company has established a good partnership in corrugated board packaging with domestic
leading enterprises, such as Nine Dragons Paper (Holdings) Limited (Nine Dragons), Shanying International
Holdings Co., Ltd. (Shanying Intl), Yuen Foong Yu Group (YFY Inc.), Xiamen Hexing Packaging Printing Co.,
Ltd. (HXPP), MYS Group Co. Ltd. (MYS), Xintonglian Packing (XTL), Zhejiang Dashengda Packaging Co., Ltd.,
Forest Packing Co., Ltd., United Creation Packaging Solutions Group (UCPS), and Zhengye International
25
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Holdings Company Limited (Zhengye International), and large international conglomerate, including International
Paper, Smurfit Kappa, DS Smith, APP Sinar Mas , and Mpact.
With the constant growth in concentration and the continuous upgrading of capacity in the downstream
industry, major customers will demand increasing overall solutions for intelligent plants as well as mid- and
high-end production lines and equipment. The Company has seized opportunities and formed a better competitive
edge by virtue of its stable business partnership during the above industry changes.
(VI) Cornerstone for sustainability based on experienced management team and professional
technician team
Dongfang Precision has an experienced management team with a global vision and a deep insight into
product R&D and design, manufacturing and operations, marketing, industrial layout, and development planning.
Thanks to its rich experience and broad horizon, the management team allows Dongfang Precision to keep up with
the general development trend of the intelligent corrugated packaging machinery manufacturing industry. By
making forward-looking and strategic plans and business layout, the management team maintains robust and
sustainable development of the Company.
In the meantime, Dongfang Precision adopts the professional manager team management model and attaches
great importance to authorization management. It deems "a wealth of talents" and "cultural orientation" as its
basic development strategies, and strengths the building and upgrading of its organizing ability through multiple
ways (including the building of a core senior management team, design of the organizational structure,
standardization of the management and control system, implementation of mid- and long-term incentives, and
building of corporate culture). Additionally, it keeps reinforcing the management and resource integration of all
functional departments, offers more support for subsidiaries, improves the general management and operation
efficiency, and promotes the implementation of the "globalization" and "synergy" strategies.
(VII) Successful practice in M&A and integration firmly supporting industrial chain layout
Dongfang Precision has adopted multiple integration measures, after acquiring Fosber Group in 2014. For
instance, it has kept sending management talents to Fosber Group, incubated and cultivated Fosber Asia, assisted
Fosber Group in adjusting its business strategies, intensified the management and R&D capabilities of the team,
and standardized the authorization management system. Through the above measures, the Company has
successfully injected operation vitality in Fosber Group. Fosber Group has achieved rapid and steady growth in
operation performance. Besides, its operating revenue is more than twice as much as that before the acquisition,
26
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
while its net profit, approximately three times.
Since the acquisition in 2015, Dongfang Precision has dispatched a management team to Parsun Power, and
facilitated the latter to streamline its strategies, adjust business strategies, and optimize key processes, such as
procurement, production, R&D, and sales. Especially, the Company helped Parsun Power constant and steady
growth from 2017 to 2020 amid the sluggish international market of outboard motors.
The successful M&A and integration cases of Fosber Group and Parsun Power have fully demonstrated the
remarkable achievements of Dongfang Precision regarding the management and control of the strategies and
finance of the subsidiaries, and the adoption of modern business management means, such as the management
mechanism of decentralization and authorization of authority, the standardization of the corporate governance of
the subsidiaries, and the operation and management of the shareholders' meeting, the Board of Directors and the
Supervisory Committee.
From 2019 to 2020, the Company completed the acquisitions of the equity of Spain Tirua, a high-end
manufacturer of corrugating and pressure rolls with a history of nearly one century and relevant business assets of
Agnati, an Italian manufacturer of the corrugated board line with a glorious history. Upon completion of the
acquisitions, Dongfang Precision comprehensively streamlined the development strategies, R&D systems, product
series, marketing, and team building of the two enterprises, and carried out management output, that facilitated
them to raise management effectiveness and further stimulate business vitality and the enthusiasm of team
members. The Company is confident that the two enterprises with profound histories will mark more
achievements and create greater value for shareholders based on effective integration.
Moreover, the Company will have a solid foundation and firm support for the subsequent expansion of
presence in industrial chain and resource integration worldwide, thanks to the successful practice and prominent
achievements in the integration of the above underlying assets, a good demonstration effect of relevant practices
on the industry and favourable comments and reputation.
III Core Business Analysis
See “I Principal Activities of the Company in the Reporting Period” above.
27
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Year-on-year changes in major financial data
Unit: yuan
2021H1 2020H1 Change(%) Cause of change
Operating revenue 1,400,558,964.18 1,177,491,225.13 18.94% Mainly due to increase in sales.
Operating cost 991,455,474.86 841,826,823.84 17.77% Mainly due to increase in sales.
Selling expenses 68,550,561.32 91,295,589.80 -24.91% Mainly due to expenses control.
Administrative
129,761,353.56 122,309,575.89 6.09% No significant change.
expenses
Finance costs -1,626,574.56 -1,734,518.18 6.22% No significant change.
Income tax Mainly due to increase in profit before tax this
38,037,005.48 5,642,310.00 574.14%
expenses year and the tax preference last year.
Mainly due to increased investment in R&D
R&D expenses 52,906,052.88 41,336,617.90 27.99%
activities.
Mainly due to increase in revenues this year
Net cash generated
and the prepaid tax amounting to 88.46 million
from/used in 206,023,828.25 29,409,409.32 600.54%
yuan last year, which did not happen in the
operating activities
current period.
Net cash generated
Mainly due to recovery of large amount of
from/used in 1,200,263,426.07 -384,795,059.32 411.92%
bank financial management.
investing activities
Net cash generated
Mainly due to the repurchase of shares in the
from/used in -700,252,772.58 -357,317,673.55 -95.97%
current period.
financing activities
Net increase in
Mainly due to the inflow of business activities
cash and cash 682,597,714.47 -707,708,887.51 196.45%
and investment activities in the period.
equivalents
Significant changes in the composition or source of profits during the reporting period.
□ Applicable √ Not applicable
There is no significant change in the composition or source of profits during the reporting period.
Breakdown of Operating Revenue
Unit: RMB yuan
2021H1 2020H1
As a % of total As a % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 1,400,558,964.18 100% 1,177,491,225.13 100% 18.94%
By operating division
28
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
2021H1 2020H1
As a % of total As a % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Intelligent
1,400,558,964.18 100.00% 1,177,491,225.13 100.00% 18.94%
manufacturing
By product category
Complete lines and
individual machine
units for intelligent
747,290,015.07 53.36% 626,162,720.18 53.18% 19.34%
corrugated
packaging
machinery
Parts for intelligent
corrugated
300,176,099.08 21.43% 302,586,619.85 25.70% -0.80%
packaging
machinery
Software and
services related to
intelligent
128,676,852.98 9.19% 100,749,743.45 8.56% 27.72%
corrugated
packaging
machinery
Outboard motors and
general utility small 224,415,997.05 16.02% 147,992,141.65 12.57% 51.64%
gasoline motors
By operating segment
Mainland China 331,950,181.68 23.70% 101,481,252.35 8.62% 227.10%
Other countries and
1,068,608,782.50 76.30% 1,076,009,972.78 91.38% -0.69%
regions
Operating Division, Product Category or Operating Segment Contributing over 10% of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB yuan
YoY change in YoY change in
Operating Gross profit YoY change in
Cost of sales operating revenue gross profit
revenue margin cost of sales (%)
(%) margin (%)
By operating division
Intelligent
1,400,558,964.18 991,455,474.86 29.21% 18.94% 17.77% 0.70%
manufacturing
29
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
YoY change in YoY change in
Operating Gross profit YoY change in
Cost of sales operating revenue gross profit
revenue margin cost of sales (%)
(%) margin (%)
By product category
Intelligent
corrugated
1,176,142,967.13 817,047,478.13 30.53% 14.24% 12.13% 1.31%
packaging
machinery
Outboard motors
and general utility
224,415,997.05 174,407,996.73 22.28% 51.64% 54.08% -1.23%
small gasoline
motors
By operating segment
Mainland China 331,950,181.68 236,113,955.92 28.87% 227.10% 228.02% -0.20%
Other countries
1,068,608,782.50 755,341,518.94 29.32% -0.69% -1.88% 0.87%
and regions
When the statistical caliber of the company's main business data is adjusted in the reporting period, the company's last issue of the
main business data is adjusted according to the caliber at the end of the reporting period.
□ Applicable √ Not applicable
Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
30
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
IV Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB yuan
As a % of gross
Amount Primary source/reason Recurrent or not
profit
Income from the securities
investment, as well as share
of profit of associates
Return on investment 52,969,194.45 22.04% Yes
recognized at the equity
method in the Reporting
Period
Increase in changes in fair
Gain/loss on changes in fair value recognized for
21,393,373.17 8.90% Yes
value securities investment in the
period.
Asset impairment loss 583,807.10 0.24% No significant impact. Not
Non-operating income 364,145.89 0.15% No significant impact. Not
Non-operating expenses 420,240.48 0.17% No significant impact. Not
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB yuan
30 June 2021 31 September 2020 Change in
As a % of As a % of percentage Reason for any significant change
Amount Amount
total assets total assets (%)
Mainly due to the transfer of some
large deposit certificates during the
Cash and bank
1,766,558,196.64 27.27% 885,711,053.88 14.01% 13.26% current period and the recovery of
balances
some wealth management products
and securities investments.
Accounts
478,400,453.81 7.38% 469,635,423.58 7.43% -0.05% No significant change.
receivable
Inventories 11,035,352.00 0.17% 29,504,693.97 0.47% -0.30% No significant change.
Mainly due to the increase in sales
Contract assets 982,781,622.68 15.17% 734,120,595.26 11.61% 3.56% orders, resulting in an increase in
inventory reserves.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Investment
0.00% 0.00% 0.00% No significant change.
property
Long-term equity
73,845,638.23 1.14% 72,671,204.73 1.15% -0.01% No significant change.
investments
Fixed assets 556,554,822.37 8.59% 571,413,480.14 9.04% -0.45% No significant change.
Construction in
9,929,394.59 0.15% 9,062,038.52 0.14% 0.01% No significant change.
progress
Right-of-use Mainly due to the implementation of
83,188,933.64 1.28% 0.00% 1.28%
assets the New Lease Standard in the period.
Mainly due to the repayment of part of
Short-term
228,289,633.82 3.52% 39,533,281.84 0.63% 2.89% the borrowings and new short-term
borrowings
borrowings in the period.
Contract Mainly due to the increase in receipts
546,618,708.94 8.44% 362,792,713.35 5.74% 2.70%
liabilities of the sales business in the period.
Long-term
341,295,101.12 5.27% 353,412,388.29 5.59% -0.32% No significant change.
borrowings
Mainly due to the implementation of
Lease liabilities 67,893,331.89 1.05% 0.00% 1.05%
the New Lease Standard in the period.
Mainly due to the recovery of some
Financial assets
1,022,938,402.56 15.79% 1,636,296,430.31 25.88% -10.09% wealth management products and
held for trading
securities investments
Current portion
Mainly due to the repayment of part of
of non-current 41,647,621.75 0.64% 226,597,528.74 3.58% -2.94%
the borrowings.
liabilities
2. Major Assets Overseas
√ Applicable □ Not applicable
Control measures As a % of the Any material
Asset value Management
Asset Source Location to protect asset Return Company’s net impairment risk
(RMB) model
safety asset value or not
100%
Producing and
interest of Operation
M&A 623,576,021.13 Italy marketing by Good 15.42% Not
Fosber management
itself
S.p.A.
100% Producing and
Operation
interest of M&A 39,176,538.19 Italy marketing by Good 0.97% Not
management
EDF S.R.L itself
32
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB yuan
Cumulative
Gain/loss on Impairment
fair-value
fair-value allowance Purchased in the Other
Item Opening amount changes Sold in the period Closing amount
changes in the for the period changes
recognized
period period
in equity
Financial assets
1. Financial
assets held for
trading
1,635,465,408.96 21,981,881.92 1,681,665,170.07 2,316,452,129.67 1,022,660,331.28
(exclusive of
derivative
financial assets)
2. Derivative
831,021.35 -588,508.75 35,084,380.62 35,048,821.94 278,071.28
financial assets
Subtotal of
1,636,296,430.31 21,393,373.17 1,716,749,550.69 2,351,500,951.61 1,022,938,402.56
financial assets
Total of the
1,636,296,430.31 21,393,373.17 1,716,749,550.69 2,351,500,951.61 1,022,938,402.56
above
Financial
0.00 0.00
liabilities
Particulars about other changes:
Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting Period.
□ Yes √ No
4. Assets to which the Company’s Rights Were Restricted as at the Period-End
Unit: RMB yuan
Item Closing carrying amount
Cash and bank balances 223,359,245.39
Other non-current assets 295,075,000.00
Total 518,434,245.39
VI Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
33
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Total investment amount in 2021H1 Total investment amount in 2020H1
Change (%)
(RMB) (RMB)
1,608,856,907.68 2,931,883,245.00 -45.13%
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable √ Not applicable
34
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB yuan
Cumulative
Gain/loss on
fair-value
Security Security Initial Measurement Opening fair-value Purchased in the Sold in the Gain/loss in Closing carrying Accounting Funding
Security type changes
code name investment cost method carrying amount changes in the period period the period amount title source
recognized
period
in equity
Domestically/ Financial
overseas - - Fair value 50,000.00 670,795,040.62 711,495,128.87 41,576,088.25 926,000.00 assets held Self-funded
listed stocks for trading
Financial
Trust
- - 504,767,340.61 Fair value 504,767,340.61 2,272,922.83 110,000,000.00 506,944,590.35 6,944,590.35 117,040,263.44 assets held Self-funded
products
for trading
Financial
Funds - - 619,890,000.00 Fair value 619,890,000.00 16,250,816.75 116,250,816.75 16,250,816.75 536,140,816.75 assets held Self-funded
for trading
Financial
Others - - 511,639,089.70 Fair value 511,639,089.70 2,819,633.59 935,954,510.07 1,086,828,995.71 5,247,084.72 368,831,322.37 assets held Self-funded
for trading
Total 1,636,296,430.31 -- 1,636,296,430.31 21,393,373.17 0.00 1,716,749,550.69 2,421,519,531.68 70,018,580.07 1,022,938,402.56 -- --
Disclosure date of the board On 27 March 2020, the Board of Directors of the Company held a meeting to consider and approve the proposal relating to securities investment for the year 2020 and
announcement approving the submitted them to the shareholders' meeting for consideration, with the securities investment valid for 12 months from the date of approval at the shareholders' meeting and
35
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
securities investments the announcement date of the Board of Directors' resolution was 28 March 2020.
On 29 March 2021, the Board of Directors held a meeting to consider and approve the proposa l relating to securities investment for the year 2021 and submitted them to the
shareholders' meeting for consideration, with the securities investment valid for 12 months from the date of approva l at the shareholders' meeting and the announcement
date of the board resolution is 30 March 2021.
Disclosure date of the general On 13 April 2020, the shareholders' meeting was held to consider and approve the proposal relating to securities investment for the year 2020, and the announcement date of
meeting announcement the resolution of the shareholders' meeting was 14 April 2020.
approving the securities On 19 April 2021, the shareholders' meeting was held to consider and approve the proposal relating to securities investment for the year 2021, and the announcement date of
investments (if any) the resolution of the shareholders' meeting was 20 April 2021.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
36
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
VIII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB yuan
Relationship Principal Registered Operating Operating
Name with the activities Total assets Net assets Net profit
capital revenue profit
Company
R&D,
processing,
manufacturing
and marketing of
Fosber EUR1.56
Subsidiary corrugator lines 1,888,532,525.63 623,576,021.13 780,390,221.90 105,009,769.31 77,283,447.42
Group million
and parts, as well
as provision of
after-sales
services
Subsidiaries acquired or disposed of in the Reporting Period:
□ Applicable √ Not applicable
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
X Risks Faced by the Company and Countermeasures
1. Risk of fluctuations in the prices of major raw materials
37
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
The major raw materials required for the production of intelligent corrugated packaging machinery are
machined parts, electrical components, standard parts, and so on. The purchase of major raw materials accounted
for a significant proportion of the Company's principal operating costs. In the first half of 2021, the prices of the
raw materials such as steels fluctuated, causing fluctuations in the Company's production costs and the company's
gross profit margin was under certain pressure.
Countermeasures: strengthen dynamic analysis and judgment of market trends, enhance communication and
cooperation with suppliers, strengthen active management and take various measures, such as appropriately
adjusting the mode of cooperation, sign long-term purchase agreements for important raw materials in due course,
to control the fluctuation of raw material purchase prices as far as possible while sharing difficulties with core
suppliers. At the same time, the price of some products are moderately increased to ensure the profit space.
2. Integration risk after industrial mergers and acquisitions
In recent years, the Company has continued to extend its industrial layout in the upstream and downstream of
the industry chain of corrugated packaging machinery, expand its business scale and further promote the
globalization of its business and assets through the epitaxial acquisitions. The new members among the
Company's overseas business entities include companies with a history of nearly 100 years and a profound track
record, and international companies with multinational distribution of business and assets and customers around
the world. During post-acquisition integration, the differences in management models, cultural backgrounds,
business practices, applicable laws and language differences among different business entities have posed certain
challenges for the Company in post-investment management and business integration.
Countermeasures: The Company will continuously promote the implementation of the "globalization"
strategy, bring in outstanding talents with international business capabilities and build a global team. It will
promote the implementation of the "a wealth of talents" strategy, continue to enhance the comprehensive
capabilities of the management team and key business teams, and build a team with an international vision and the
ability to work excellently in a global environment. It will promote the implementation of the "synergy" strategy,
seek common ground while reserving differences with an open mind based on "mutual respect and trust". At the
same time, it will deepen the post-investment management mechanism of "strategic control + hierarchical
authorization management" to establish an effective control model in integration and improve the synergy among
the business entities, so as to achieve a better synergy effect of the industrial chains and the healthy and
sustainable development of each business entity.
38
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
3. Potential risks of securities investment business
During the Reporting Period, the Company conducted securities investment with its own funds. Based on the
business attributes, there are certain risks associated with securities investment, including the risk of market
fluctuations and uncertainty of returns as macroeconomic situations have significant impacts on the financial
market, and the risk that the Company may suffer certain investment losses in case of risk events in the process of
entrusting wealth management activities to the trustees in terms of investment strategies and use of funds.
Countermeasures: In accordance with the Policy for Securities Investment Management, the Company
continuously strengthens the risk control management of securities investment to ensure the safety and effective
value-added of investment funds. In accordance with the economic situation and changes in the financial market,
it continuously tracks and analyses the progress of securities investment and the investment of funds, the progress
of project investment and the performance of the capital market, and timely takes corresponding preservation
measures to control investment risks.
39
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part IV Corporate Governance
I Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type participation Date of the meeting Disclosure date Resolution
Notes
ratio
Announcement on the
The First
Resolutions of the First
Extraordinary Extraordinary
31.32% 14 January 2021 15 January 2020 Extraordinary General Meeting
General Meeting of General Meeting
of 2021 disclosed on
2021
http://www.cninfo.com.cn
Announcement on the
The 2020 Annual Annual General Resolutions of the 2020 Annual
31.87% 19 April 2021 20 April 2021
General Meeting Meeting General Meeting disclosed on
http://www.cninfo.com.cn
Notes: The investor participation ratio was the shareholdings with voting rights of attending investors as a percentage of the
Company’s total shares with voting rights.
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable √ Not applicable
II Changes of Directors, Supervisors and Senior Manage ment
□ Applicable √ Not applicable
The company's directors, supervisors and senior management remain unchanged during the reporting period, which can be found in
the 2020 Annual report.
III Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no semi-annual dividend plan, either in the form of cash or stock.
40
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
√ Applicable □ Not applicable
In order to refine its long-term incentive mechanism, boost the enthusiasm of management personnel and key
employees of all levels, effectively promote long-term development, and achieve the objective of “Promoting
Team Stability and Morale, Attract Talent and Improve Operating Performance”, the Company launched the 2020
Restricted Share Incentive Plan in the first quarter of 2020.
The progress in the reporting period is as follows:
1. On 24 February 2021, the Company completed the ownership transfer of the 4,240,000 restricted shares to
18 awardees at RMB1.00/share, the listing date of which is 25 February 2021. For details, see the Announcement
on the Completion of the Ownership Transfer of the Grant of Reserved Restricted Shares under the 2020
Restricted Share Incentive Plan disclosed by the Company on www.cninfo.com.cn dated 26 February 2021.
2. On 24 February 2021, the Company completed the repurchase and retirement of the 900,000 restricted
shares that had been granted to two resigned awardees but were still locked up. For details, see the Announcement
on the Completion of the Repurchase and Retirement of Certain Restricted Shares disclosed by the Company on
www.cninfo.com.cn dated 26 February 2021.
3. On 18 June 2021, the Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking
Period for the First Grant under the 2020 Restricted Share Incentive Plan was approved at the 8th (Extraordinary)
Meeting of the 4th Board of Directors and the 6th (Extraordinary) Meeting of the 4th Supervisory Committee. For
details, see the Announcement on the Satisfaction of the Unlocking Conditions for the First Unlocking Period for
the First Grant under the 2020 Restricted Share Incentive Plan disclosed by the Company on www.cninfo.com.cn
dated 19 June 2021.
4. On 18 June 2021, the Proposal on the Repurchase and Retirement of Certain Restricted Shares was
approved at the 8th (Extraordinary) Meeting of the 4th Board of Directors and the 6th (Extraordinary) Meeting of
the 4th Supervisory Committee. The Company intended to repurchase and retire the 30,000 restricted shares that
had been granted to one awardee but the unlocking conditions for the first unlocking period were not satisfied. For
details, see the Announcement on the Repurchase and Retirement of Certain Restricted Shares disclosed by the
Company on www.cninfo.com.cn dated 19 June 2021.
5. On 25 June 2021, 4,310,000 shares held by 37 awardees were unlocked for public trading in the first
41
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
unlocking period for the first grant under the 2020 Restricted Share Incentive Plan. For details, see the Reminder
on the Unlocking for Public Trading of Shares in the First Unlocking Period for the First Grant under the 2020
Restricted Share Incentive Plan disclosed by the Company on www.cninfo.com.cn dated 24 June 2021.
42
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part V Environmental and Social Responsibilities
I Significant Environme ntal Issues
Whether the listed company and its subsidiaries fell into major pollutant-discharge enterprises and institutions published by national
environmental protection authorities.
□ Yes √ No
Not applicable
The company and its subsidiaries did not fall into major pollutant-discharge enterprises and institutions
published by national environmental protection authorities, and the company was not administratively punished
for environmental issues in this reporting period. For other enviromenal information, please refer to “II Social
Responsibilities” below.
II Social Responsibilities
The Company attached importance to fulfil social responsibility in daily operations, intending to promote the
harmony and co-prosperity between it and parties related to its interests. The Company also took active measures
in the protection of the rights and interests of shareholders, creditors, employees, suppliers, customers and
consumers, environmental protection, sustainable development, public relations and social public welfare
undertakings, and strived to maximize comprehensive social benefits including the sustainable development of
itself.
(1) Corporate governance: During the Reporting Period, the Company strictly abided by the Company Law,
the Securities Law and Code of Corporate Governance for Listed Companies, continued to refine the corporate
governance structure, improve the internal control system, formed the decision-making system comprising the
Shareholders' General Meeting, the Board of Directors, the Supervisory Committee and the Management, and
timely fulfilled its obligation of information disclosure according to laws and regulations and effectively
safeguarded the rights and interests of all shareholders.
(2) Rights and interests of employees: The Company provided employees with welfare and care by providing
holiday gifts and holding employee birthday parties, annual meetings and team building activities, improved
employees' professional competence by offering regular or irregular training to employees in the headquarters and
domestic and foreign branches and subsidiaries, and continued to improve the competitive comprehensive
remuneration system to retain and attract talents needed for the Company's sustainable development.
(3) Relationship with customers and suppliers: Long adhering to the principle of "honest business" and
"mutual benefit and win-win", the Company took the initiative to construct and develop strategic partnership with
suppliers and customers and jointly built a platform of trust and cooperation, and earnestly fulfilled its social
43
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
responsibilities to suppliers, customers and consumers. The Company has been well performing contracts with
suppliers and customers and ensuring that the rights and interests of all parties are highly valued and duly
protected.
(4) Production safety: The Company strictly abided by the Labour Law and the Labour Contract Law,
adhered to the "people-oriented" principle, attached importance to the needs of employees, strived to improve the
working and living environments of employees, and has set up a labour union to effectively protect the interests of
employees. It also provided labour protection supplies according to the risk factors of different posts, organized
occupational health examinations for employees (before taking the post, on the post and before leaving the post),
and bought safety liability insurance for employees on highly risky posts. In 2020, Dongfang Precision extended
its Grade II Production Safety Standardization Certificate for Machinery Enterprises, and Parsun Power and
Fosber Asia were granted the Grade III Production Safety Standardization Certificate for Machinery Enterprises.
(5) Environmental protection: First, Dongfang Precision and Parsun Power were granted the National
Pollutant Discharge Permit and met post-licensing regulatory requirements as required. Second, Dongfang
Precision and Parsun Power commissioned the qualified third party environmental protection agencies to compile
the Contingency Plans for Environmental Emergencies, and filed them. Third, the Company completed its
environmental protection facilities (e.g., the waste gas treatment facility and the waste water treatment facility),
and passed the qualification re-examination on OHSAS18001:2007 Occupational Health and Safety Management
Systems and ISO14001:2005 Environmental Management System. Fourth, the Company ommissioned a third
party to install and operate 24h online wastewater flow monitoring equipment, and also commissioned a third
party testing agency to test waste water, waste gas and noise every quarter. It also required environmental
equipment operators to carry out regular inspections everyday. Fifth, Parsun Power commissioned a third party to
implement annual environmental monitoring, and tested the activated carbon adsorption equipment before and
after maintenance (including replacement of activated carbon). It also divided pollutants and wastes into industrial
waste water, waste gas, solid waste, hazardous waste and domestic waste, and disposed of them, and earnestly
fulfilled its responsibility of environmental protection.
(6) Anti-fraud: The Group complied a thorough internal authorization manual that detailed provisions on
internal authorization process of major matters to ensure appropriate internal control and reduce the risk of fraud.
In order to create a fair, just, honest and non-corrupt internal business environment and strengthen internal
monitoring, the Company also established and launched the anti-fraud reporting platform to encourage employees
to report fraud findings.
(7) Social honour: Dongfang Precision won honorary titles including "Top 500 Private Manufacturing
Enterprises in China", "Leading Enterprises in Subdivided Industries in Foshan", and "Guangdong Provincial
Industrial Design Center"; Fosber Asia won honorary titles including "Guangdong Demonstration Enterprise of
Intellectual Property"; and Parsun Power won honorary titles including "Leading Enterprise in China's Internal
44
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Combustion Engine Industry", "2021 China Shipbuilding Industry Best Technology Innovation Award", "2021
China Shipbuilding Industry Outstanding Contribution Award", and in July 2021 was shortlisted as a national
"little giant" enterprise with the quality of specialization, refinement, characteristics and novelty.
45
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part VI Significant Events
I Undertakings of the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in the Reporting Period
or Unfulfilled and Overdue at the Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Occupation of the Company’s Capital by the Controlling Shareholder or Other Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
III Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of Inde pendent Auditor
Whether the semi-annual financial report was audited.
□ Yes √ No
The semi-annual financial report was not audited.
V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting
Period
□ Applicable √ Not applicable
VI Explanations Given by the Board of Directors Regarding “Modified Opinion” on the
Financial Statements of Last Year
□ Applicable √ Not applicable
46
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
VII Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Signifiant Legal Matters
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Other Legal Matter
□ Applicable √ Not applicable
IX Punishme nts and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XI Significant Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
47
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Financial Companies and Financial Companies Controlled by the Company
□ Applicable √ Not applicable
No such cases in the Reporting Period.
6. Other Significant Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Significant Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
48
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
2. Significant Guarantees
√ Applicable □ Not applicable
Unit: RMB yuan'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Guarantee
Disclosure
Actual Actual Having for a
date of the Line of Type of Security Counter-guarantees Term of
Obligor occurrence guarantee expired related
guarantee line guarantee guarantee (if any) (if any) guarantee
date amount or not party or
announcement
not
Not applicable
Guarantees provided by the Company as the parent for its subsidiaries
Guarantee
Disclosure
Actual Actual Having for a
date of the Line of Type of Security Counter-guarantees Term of
Obligor occurrence guarantee expired related
guarantee line guarantee guarantee (if any) (if any) guarantee
date amount or not party or
announcement
not
From the
date
when the
Dongfang guarantee
11 January 16 March Joint
Precision 34,495.67 34,495.67 - - took Yes Not
2020 2020 liability
(Netherland) effect to
18
February
2021
From the
date
when the
Dongfang Joint
30 December 4 February guarantee
Precision 18,908.05 18,908.05 liability; Deposits - Not Not
2020 2021 took
(Netherland) Pledge
effect to 3
February
2022
From the
date
Dongfang Joint when the
30 June
Precision 5 June 2020 26,901.7 25,748.77 liability; Deposits - guarantee Not Not
2020
(Netherland) Pledge took
effect to
29 June
49
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
2023
Total actual amount
Total approved line for such
of such guarantees
guarantees in the Reporting 18,908.05 18,908.05
in the Reporting
Period (B1)
Period (B2)
Total actual balance
Total approved line for such of such guarantees
guarantees at the end of the 80,305.42 at the end of the 44,656.82
Reporting Period (B3) Reporting Period
(B4)
Guarantees provided between subsidiaries
Guarantee
Disclosure
Actual Actual Having for a
date of the Line of Type of Security Counter-guarantees Term of
Obligor occurrence guarantee expired related
guarantee line guarantee guarantee (if any) (if any) guarantee
date amount or not party or
announcement
not
From the
date
when the
guarantee
29 April Joint
Italy QCorr 15 May 2020 1,921.55 1,921.55 - - took Yes Not
2020 liability
effect to
15
February
2021
From the
date
when the
30 April Joint guarantee
Italy QCorr 15 May 2020 2,305.86 2,305.86 - - Not Not
2020 liability took
effect to
30 June
2024
Total actual amount
Total approved line for such
of such guarantees
guarantees in the Reporting 0 0
in the Reporting
Period (C1)
Period (C2)
Total actual balance
Total approved line for such of such guarantees
guarantees at the end of the 4,227.41 at the end of the 2,305.86
Reporting Period (C3) Reporting Period
(C4)
50
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the guarantee amount in
18,908.05 18,908.05
Reporting Period the Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee line at the
84,532.83 the end of the 46,962.68
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as %
12.09%
of the Company’s net assets
Of which:
Balance of guarantees provided for shareholders,
0
the actual controller and their related parties (D)
Balance of debt guarantees provided directly or
indirectly for obligors with an over 70% debt/asset 46,962.68
ratio (E)
Amount by which the total guarantee amount
0
exceeds 50% of the Company’s net assets (F)
Total of the three amounts above (D+E+F) 46,962.68
Joint liability possibly borne or already borne in
the Reporting Period for outstanding guarantees (if Not applicable
any)
Guarantees provided in breach of prescribed
Not applicable
procedures (if any)
3. Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB yuan’0,000
Funding Undue Unrecovered overdue Impairment provision for
Type Amount
source amount amount unrecovered overdue amount
Bank’s wealth management
Self-funded 50,885.69 29,013.58 0 0
product
Securities firm’s wealth
Self-funded 60,000 50,000 0 0
management product
Trust product Self-funded 50,000 11,000 0 0
Total 160,885.69 90,013.58 0 0
51
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
High-risk wealth management transactions with a significant single amount or with low security, low liquidity and no principal
protection:
□ Applicable √ Not applicable
Wealth management transactions where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable √ Not applicable
4. Significant Contracts Arising in the Ordinary Course of Business
□ Applicable √ Not applicable
5. Other Significant Contracts
□ Applicable √ Not applicable
XIII Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Significant Events of Subsidiaries
□ Applicable √ Not applicable
52
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the period (+/-) After
Shares as Shares as
New dividend dividend
Shares Percentage (%) Other Subtotal Shares Percentage (%)
issues converted from converted from
profit capital reserves
1. Restricted shares 242,746,130 15.71% 0 0 0 -1,420,000 -1,420,000 241,326,130 18.12%
1.1 Shares held by the government 0 0.00% 0 0 0 0 0 0 0.00%
1.2 Shares held by state-owned corporations 0 0.00% 0 0 0 0 0 0 0.00%
1.3 Shares held by other domestic investors 241,446,130 15.63% 0 0 0 -1,560,000 -1,560,000 239,886,130 18.01%
Including: Shares held by domestic corporations 0 0.00% 0 0 0 0 0 0 0.00%
Shares held by domestic individuals 241,446,130 15.63% 0 0 0 -1,560,000 -1,560,000 239,886,130 18.01%
1.4 Shares held by overseas investors 1,300,000 0.08% 0 0 0 140,000 140,000 1,440,000 0.11%
Including: Shares held by overseas corporations 0 0.00% 0 0 0 0 0 0 0.00%
Shares held by overseas individuals 1,300,000 0.08% 0 0 0 140,000 140,000 1,440,000 0.11%
2. Unrestricted shares 1,302,380,827 84.29% 0 0 0 -211,618,790 -211,618,790 1,090,762,037 81.88%
2.1 RM B-denominated ordinary shares 1,302,380,827 84.29% 0 0 0 -211,618,790 -211,618,790 1,090,762,037 81.88%
53
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
2.2 Do mestically listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
2.3 Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
2.4 Others 0 0.00% 0 0 0 0 0 0 0.00%
3. Total shares 1,545,126,957 100.00% 0 0 0 -213,038,790 -213,038,790 1,332,088,167 100.00%
Reasons for share changes:
√ Applicable □ Not applicable
1. The 2020 Share Repurchase Plan was completed and the shares repurchased were retired in the reporting period
As of 2 June 2021, the Company completed the implementation of the 2020 Share Repurchase Plan. A total of 212,138,790 shares were repurchased, with a total payment of approximately
RMB0.99 billion (exclusive of transaction costs). The retirement of the shares repurchased was completed on 11 June 2021.
2. The Company finished the repurchase and retirement of the 900,000 restricted shares that had been granted to two resigned awardees but were still locked up in the reporting
period
On 24 February 2021, the Company completed the repurchase and retirement of the 900,000 restricted shares that had been granted to two resigned awardees but were still locked up.
3. The Company completed the ownership transfer of the grant of reserved restricted shares under the 2020 Restricted Share Incentive Plan in the reporting period
On 24 February 2021, the Company completed the ownership transfer of the 4,240,000 restricted shares under the 2020 Restricte d Share Incentive Plan to 18 awardees (including 2
foreigners).
4. Unlocking for Public Trading of Shares in the First Unlocking Pe riod for the First Grant under the 2020 Restricted Share Incentive Plan in the reporting period
On 25 June 2021, the shares were unlocked for public trading in the first unlocking period for the first grant under the 2020 Restricted Share Inc entive Plan, which involved 4,310,000
shares held by 37 awardees (including 3 foreigners).
5. Part of the shares held by Ms. Qiu Yezhi, the director and CEO of the Company, was unlocked as required by the applicable laws and regulations in the reporting period
54
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Approval of share changes:
√ Applicable □ Not applicable
In the Reporting Period, with respect to share changes involved the above-mentioned matters from 1 to 4, the Company followed the applicable laws and regulations and its Articles of
Association, executed the approval procedures with the general meeting and the Board of Directors, and obtained approval from the Shenzhen Stock Exchange.
Transfer of share ownership:
√ Applicable □ Not applicable
In the Reporting Period, with respect to the transfers of share ownership involved the above-mentioned matters from 1 to 3, the Company completed the transfers with the Shenzhen branch
of China Securities Depository and Clearing Co., Ltd. after they were approved by the Shenzhen Stock Exchange.
Progress on any share repurchase:
√ Applicable □ Not applicable
On 3 June 2021, the Company disclosed the Announcement No. 2021-039 on the Implementation Result of Share Repurchase and Share Changes. As of 2 June 2021, the Company
completed the implementation of the 2020 Share Repurchase Plan.
During the actual implementation period from 10 July 2020 to 2 June 2021, a total of 212,138,790 shares (13.74% of the Company’s total share capital before retirement of the
repurchased shares) were repurchased by way of centralized bidding, with a total payment of approximately RMB0.99 billion (exclusive of transaction costs, highest transaction price:
RMB5.10/share; lowest transaction price: RMB3.88/share; average transaction price: RMB4.66/share).
The retirement of the 212,138,790 shares repurchased was completed on 11 June 2021.
55
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to the Company’s ordinary shareholders and other financial
indicators of the prior year and the prior accounting period, respectively:
□ Applicable √ Not applicable
Unit: RMB yuan
Before share changes After share changes
Basic earnings per share for 2020 0.26 0.29
Diluted earnings per share for 2020 0.26 0.29
Equity per share attributable to the Company’s ordinary shareholders for
2.81 3.12
2020
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Opening Increase in Closing
Unlocked in
Shareholder restricted restricted shares in restricted Reason for restriction Date of unlocking
the period
shares the period shares
1. Continued to lock in accordance with the legal 1. In accordance with the regulations
Qiu Yezhi 25,632,388 2,250,000 0 23,382,388
lock-up ratio of senior management. regarding the management of the
56
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Opening Increase in Closing
Unlocked in
Shareholder restricted restricted shares in restricted Reason for restriction Date of unlocking
the period
shares the period shares
2.Participated in the 2020 Restricted Share shares of senior management.
Incentive Plan of the Company. 2. When the unlocking conditions as
stated in the 2020 Restricted Share
Incentive Plan are met
Participated in the 2020 Restricted Share Incentive When the unlocking conditions as
Xie Weiwei 1,000,000 200,000 0 800,000 Plan of the Company. 80% of the shares held were stated in the 2020 Restricted Share
restricted shares for incentive plan. Incentive Plan are met
Participated in the 2020 Restricted Share Incentive When the unlocking conditions as
Zhou Wenhui 1,200,000 240,000 0 960,000 Plan of the Company. 80% of the shares held were stated in the 2020 Restricted Share
restricted shares for incentive plan. Incentive Plan are met
The other 35 awardees of the first When the unlocking conditions as
Participated in the 2020 Restricted Share Incentive
grant of the 2020 Restricted Share 11,400,000 2,070,000 0 9,330,000 stated in the 2020 Restricted Share
Not es
Plan of the Company
Incentive Plan Incentive Plan are met
18 awardees of the reserved grant When the unlocking conditions as
Participated in the 2020 Restricted Share Incentive
of the 2020 Restricted Share 0 0 4,240,000 4,240,000 stated in the 2020 Restricted Share
Plan of the Company
Incentive Plan Incentive Plan are met
Total 39,232,388 4,760,000 4,240,000 38,712,388 -- --
Notes for “the other 35 awardees of the first grant of the 2020 Restricted Share Incentive Plan”:
1. The Company repurchased and retired on 24 February 2021 the 900,000 restricted shares of two resigned awardees that had been granted but were still locked up.
2. Among the awardees of the first grant of the 2020 Restricted Share Incentive Plan, one employee didn’t satisfy the unlocking conditions, 30,000 restricted shares of whom were not unlocked
in the Reporting Period.
57
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
II Issuance and Listing of Securities
□ Applicable √ Not applicable
III Shareholders and Their Shareholdings
Unit: share
Number of ordinary shareholders at the Number of preference shareholders with resumed
34,171 0
period-end voting rights at the period-end (if any) (see note 8)
5% or greater shareholders or top 10 shareholders
Total shares Increase/decrease Shares in pledge or frozen
Shareholding Restricted Unrestricted
Name of shareholder Nature of shareholder held at the in the Reporting
percentage shares held shares held Status Shares
period-end Period
Tang Zhuolin Domestic individual 20.32% 270,737,568 0 203,053,176 67,684,392 In pledge 187,000,000
Tang Zhuomian Domestic individual 7.75% 103,234,534 -32,650,600 0 103,234,534
Pulead Technology Industry
State-owned corporation 4.61% 61,454,378 -8,000,000 0 61,454,378
Co., Ltd.
Contemporary Amperex Domestic non-state-owned
3.49% 46,490,368 0 0 46,490,368
Technology Co., Ltd. corporation
Ruan Huili Domestic individual 3.22% 42,863,880 -2,223,352 0 42,863,880
JIC Investment Co., Ltd. State-owned corporation 2.94% 39,215,685 0 0 39,215,685
Beijing Automotive Group
Industry Investment Co., State-owned corporation 2.48% 33,069,489 -15,442,200 0 33,069,489
Ltd.
Luzhou Industrial
State-owned corporation 2.38% 31,770,010 0 0 31,770,010
Development Investment
58
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Group Co., Ltd.
Huarong Securities－China
Merchants Securities－
Huarong Youzhi Collective Other 2.36% 31,372,549 0 0 31,372,549
Asset Management Plan No.
1
Qiu Yezhi Domestic individual 2.34% 31,176,518 0 23,382,388 7,794,130
Strategic investor or general corporation becoming a
top-10 ordinary shareholder in a rights issue (if any) (see None
note 3)
Related or acting-in-concert parties among the Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On 18 August 2010, they signed the Agreement on Acting in Concert. Apart
shareholders above from that, the Company is not aware of any related or acting-in-concert parties among the other shareholders above.
Above shareholders entrusting or entrusted with voting
None
rights, or waiving voting rights
Top 10 shareholders including the special account for
None
repurchase (if any) (see note 11)
Top 10 unrestricted ordinary shareholders
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
RMB-denominated
Tang Zhuomian 103,234,534 103,234,534
ordinary stock
RMB-denominated
Tang Zhuolin 67,684,392 67,684,392
ordinary stock
RMB-denominated
Pulead Technology Industry Co., Ltd. 61,454,378 61,454,378
ordinary stock
Contemporary Amperex Technology Co., Ltd. 46,490,368 RMB-denominated 46,490,368
59
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
ordinary stock
RMB-denominated
Ruan Huili 42,863,880 42,863,880
ordinary stock
RMB-denominated
JIC Investment Co., Ltd. 39,215,685 39,215,685
ordinary stock
RMB-denominated
Beijing Automotive Group Industry Investment Co., Ltd. 33,069,489 33,069,489
ordinary stock
Luzhou Industrial Development Investment Group Co., RMB-denominated
31,770,010 31,770,010
Ltd. ordinary stock
Huarong Securities－China Merchants Securities－
RMB-denominated
Huarong Youzhi Collective Asset Management Plan No. 31,372,549 31,372,549
ordinary stock
1
Qinghai Puren Intelligent Technology R & D Center RMB-denominated
26,628,340 26,628,340
(Limited Partnership) ordinary stock
Related or acting-in-concert parties among top 10
Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On 18 August 2010, they signed the Agreement on Acting in Concert. Pulead
unrestricted public shareholders, as well as between top
Technology Industry Co., Ltd. and Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) are acting-in-concert
10 unrestricted public shareholders and top 10
parties. Apart from that, the Company is not aware of any related or acting-in-concert parties among the other shareholders above.
shareholders
As of 30 June 2021, among the top 10 shareholders, Pulead Technology Industry Co., Ltd. held 61,454,256 shares in the Company in
Top 10 ordinary shareholders involved in securities its client account of collateral securities for margin trading in China Securities Co., Ltd.; and Luzhou Industrial Development
margin trading (if any) (see note 4) Investment Group Co., Ltd. held 31,770,010 shares in the Company in its client account of collateral securities for margin trading in
Guotai Junan Securities Co., Ltd.
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
IV Changes in the Shareholdings of Directors, Supervisors and Senior Manage ment
Opening Increase in Decrease in Closing Opening shareholding of Restricted shares Closing shareholding of
Name Office title Incumbent/Former shareholding the period the period shareholding granted restricted shares granted in the period granted restricted shares
(share) (share) (share) (share) (share) (share) (share)
Chief Financial
Shao
Officer and Vice Incumbent 0 0 0 800,000 0 800,000 800,000
Yongfeng
President
Total -- -- 0 0 0 800,000 0 800,000 800,000
V Changes of the Company’s Controlling Shareholder and Actual Controller
Controlling Shareholder changed during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Actual Controller changed during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
61
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part VIII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
62
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part IX Corporate Bonds
□ Applicable √ Not applicable
63
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Part X Financial Report
I Audit Report
Whether the semi-annual financial report was audited.
□ Yes √ No
The semi-annual financial report was not audited.
II Financial Statements
Unit of the notes to financial statements: RMB
1. Consolidated Balance Sheet
Prepared by: Guangdong Dongfang Precision Science & Technology Co., Ltd.
30 June 2021
Unit: RMB yuan
Item 30 June 2021 31 December 2020
Current assets:
Cash and bank balances 1,766,558,196.64 885,711,053.88
Settlement provisions
Dismantling funds
Financial assets held for trading 1,022,938,402.56 1,636,296,430.31
Derivative financial assets
Notes receivable 2,501,310.00 12,744,582.88
Accounts receivable 478,400,453.81 469,635,423.58
Receivable financing 89,380,635.10 56,737,978.04
Prepayments 45,014,581.19 29,109,416.21
Premium receivable
Receivable reinsurance account
Provision for reinsurance contract
64
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
receivable
Other receivables 172,167,571.63 79,103,472.64
Including: Interest receivable 1,562,811.76 587,074.81
Dividend receivable
Buy back resale financial assets
Inventories 982,781,622.68 734,120,595.26
Contract assets 11,035,352.00 29,504,693.97
Assets held for sale
Current portion of non-current
104,596,833.33 2,556,000.00
assets
Other current assets 26,499,663.30 22,271,217.65
Total current assets 4,701,874,622.24 3,957,790,864.42
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 4,103,750.00 1,475,000.00
Long-term equity investment 73,845,638.23 72,671,204.73
Investment in other equity
instruments
Other non-current financial assets 6,050,655.19 5,948,588.15
Real estate investment
Fixed assets 556,554,822.37 571,413,480.14
Construction in progress 9,929,394.59 9,062,038.52
Productive biological assets
Oil and gas asset
Right-of-use assets 83,188,933.64
Intangible assets 317,815,304.47 332,387,182.69
Development expenditure
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Goodwill 317,358,714.48 324,904,239.97
Long-term prepaid expenses 14,162,498.68 12,096,981.78
Deferred tax assets 95,863,215.79 98,947,059.25
Other non-current assets 298,083,405.96 936,540,047.40
Total non-current assets 1,776,956,333.40 2,365,445,822.63
Total assets 6,478,830,955.64 6,323,236,687.05
Current liabilities:
Short-term borrowings 228,289,633.82 39,533,281.84
Borrowing from the Central Bank
Borrowed funds
Financial liabilities held for trading 5,286,141.68 41,408,109.80
Derivative financial liabilities
Notes payable 108,984,928.59 104,855,187.97
Accounts payable 620,027,263.79 503,042,561.05
Advance receivables
Contract liabilities 546,618,708.94 362,792,713.35
Selling back financial assets
Deposits and Interbank deposit
Agent trading securities
Agent underwriting securities
Employee benefits payable 94,928,622.50 92,623,562.93
Tax payable 47,777,979.02 36,369,777.05
Other payables 106,797,162.19 81,743,851.64
Including: Interest payable
Dividend payable
Fees and commissions
Reinsurance accounts payable
Liabilities held for sale
Current portion of non-current 41,647,621.75 226,597,528.74
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
liabilities
Other current liabilities 12,709,108.10 20,532,046.04
Total current liabilities 1,813,067,170.38 1,509,498,620.41
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 341,295,101.12 353,412,388.29
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities 67,893,331.89
Long-term payables
Long-term employee benefits
16,531,807.55 18,451,652.74
payable
Provisions 94,338,677.97 105,450,257.63
Deferred income 16,154,327.96 16,861,488.27
Deferred tax liabilities 18,948,339.62 19,296,386.16
Other non-current liabilities 65,835,454.34 68,737,415.25
Total non-current liabilities 620,997,040.45 582,209,588.34
Total Liabilities 2,434,064,210.83 2,091,708,208.75
Equity:
Share capital 1,332,088,167.00 1,545,126,957.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus 3,250,508,313.00 4,002,393,061.81
Less: Treasury stock 59,060,125.60 579,403,185.12
Other comprehensive income -41,996.21 20,026,089.70
Special reserve 11,031,213.81 10,057,438.97
Surplus reserves 51,830,974.45 51,830,974.45
67
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
General risk preparation
Retained earnings -700,375,316.60 -891,492,837.06
Total equity attributable to owners of the
3,885,981,229.85 4,158,538,499.75
parent
Non-controlling interests 158,785,514.96 72,989,978.55
Total equity 4,044,766,744.81 4,231,528,478.30
Total liabilities and equity 6,478,830,955.64 6,323,236,687.05
Legal representative: Tang Zhuolin Chief in charge of accounting work: Shao Yongfeng Head of accounting institution: Yao B in
2. Parent Company Balance Sheet
Unit: RMB yuan
Item 30 June 2021 31 December 2020
Current assets:
Cash and bank balances 560,607,403.98 134,020,813.88
Financial assets held for trading 941,280,926.33 1,539,762,030.97
Derivative financial assets
Notes receivable
Accounts receivable 189,125,665.95 153,517,438.90
Receivable financing 43,067,917.44 53,245,689.47
Prepayments 5,336,238.43 2,641,946.74
Other receivables 442,548,476.35 68,388,543.22
Including: Interest receivable
Dividend receivable 40,000,000.00
Inventories 135,036,233.57 123,156,907.36
Contract assets 4,470,173.25
Assets held for sale
Current portion of non-current
104,596,833.33 2,556,000.00
assets
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Other current assets 546,829.98 18,942.75
Total current assets 2,422,146,525.36 2,081,778,486.54
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 4,103,750.00 1,475,000.00
Long-term equity investment 538,456,872.81 464,794,856.81
Investment in other equity
instruments
Other non-current financial assets
Real estate investment
Fixed assets 325,219,168.56 329,230,669.84
Construction in progress 565,674.51 351,261.61
Productive biological assets
Oil and gas asset
Right-of-use assets 19,876,295.13
Intangible assets 59,471,642.29 58,215,631.98
Development expenditure
Goodwill
Long-term prepaid expenses 4,968,504.71 3,475,004.06
Deferred tax assets 31,738,225.23 32,570,759.90
Other non-current assets 295,660,189.00 935,660,189.00
Total non-current assets 1,280,060,322.24 1,825,773,373.20
Total assets 3,702,206,847.60 3,907,551,859.74
Current liabilities:
Short-term loan
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 49,252,904.67 55,312,772.43
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Accounts payable 61,486,744.87 53,044,344.90
Advance receivables
Contract liabilities 19,270,375.20 22,116,154.74
Employee benefits payable 8,269,010.18 16,961,090.03
Tax payable 5,851,535.60 5,181,895.95
Other payables 161,014,725.96 50,884,934.80
Including: Interest payable
Dividend payable
Liabilities held for sale
Current portion of non-current
4,993,824.15
liabilities
Other current liabilities 1,201,114.86 2,253,619.05
Total current liabilities 311,340,235.49 205,754,811.90
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities 17,844,256.36
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 12,748,641.66 13,306,971.66
Deferred tax liabilities 5,469,738.95 3,894,304.65
Other non-current liabilities
Total non-current liabilities 36,062,636.97 17,201,276.31
Total Liabilities 347,402,872.46 222,956,088.21
Equity:
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Share capital 1,332,088,167.00 1,545,126,957.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus 3,069,156,690.70 3,846,323,477.68
Less: Treasury stock 59,060,125.60 579,403,185.12
Other comprehensive income
Special reserve 4,422,656.14 3,835,986.08
Surplus reserves 51,830,974.45 51,830,974.45
Retained earnings -1,043,634,387.55 -1,183,118,438.56
Total equity 3,354,803,975.14 3,684,595,771.53
Total liabilities and equity 3,702,206,847.60 3,907,551,859.74
3. Consolidated Income Statement
Unit: RMB yuan
Item H1 2021 H1 2020
1 Total operating revenue 1,400,558,964.18 1,177,491,225.13
Including: Operating revenue 1,400,558,964.18 1,177,491,225.13
Interest income
Premiums earned
Fee and commission income
2 Total operating cost 1,242,685,402.46 1,094,590,537.26
Including: Cost of sales 991,455,474.86 841,826,823.84
Interest expense
Payment of fees and commission
Surrender fund
Net indemnity expenditure
Draw the net reserve of insurance
liability contract
Policy dividend expense
Reinsurance cost
Taxes and surcharges 6,319,014.40 5,688,141.92
Selling expenses 68,550,561.32 91,295,589.80
Administrative expenses 129,761,353.56 122,309,575.89
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
R&D expenses 48,225,572.88 35,204,923.99
Finance costs -1,626,574.56 -1,734,518.18
Including: Interest expenses 4,899,967.92 6,239,583.43
Interest income 11,985,482.68 11,409,249.10
Add: Other income 6,853,659.68 7,097,271.94
Investment income (loss with "-" sign) 52,969,194.45 32,724,984.33
Including: Share of profit or loss of joint
ventures and associates 1,249,209.43 23,671.37
Income from derecognition of
financial assets measured at amortised cost (loss with
"-" sign)
Exchange gain (loss with "-" sign)
Net exposure hedging gain (loss with "-"
sign)
Gain/loss on changes in fair value (loss
with "-" sign) 21,393,373.17 13,309,111.52
Credit impairment loss (loss is listed with
"-" sign) 487,181.58 358,541.25
Asset impairment loss (loss with "-" sign) 583,807.10 -2,978,396.97
Gain/loss on disposal of assets (loss with
"-" sign) 276,635.45 1,972.08
3 Operating profit (losses are listed with "-" sign) 240,437,413.15 133,414,172.02
Add: Non-operating income 364,145.89 176,776.93
Less: Non-operating expenses 420,240.48 1,464,849.29
5 Gross profit (the gross loss shall be filled in with
the sign "-") 240,381,318.56 132,126,099.66
Less: Income tax expenses 38,037,005.48 5,642,310.00
Net profit (net loss is listed with "-" sign) 202,344,313.08 126,483,789.66
(1) Net profit from continuing operations
i. Net profit from continuing operations (net loss
with "-" sign) 202,344,313.08 126,483,789.66
ii. Net profit from termination of operation (net
loss with "-" sign)
(2) Net profit classified by attribution of
ownership
i. Net profit attributable to owners of the parent 191,117,520.46 127,198,462.09
ii. Net profit attributable to non-controlling
interests 11,226,792.62 -714,672.43
6 Other comprehensive income/(loss), net of tax -22,999,041.42 3,951,913.69
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Other comprehensive income/(loss) attributable
to owners of the parent, net of tax -20,068,085.91 3,951,913.69
(1) Other comprehensive loss that will not
be reclassified to profit or loss -95,990.87 65,719.32
i. Changes caused by remeasurements
on defined benefit schemes -95,990.87 65,719.32
ii. Other comprehensive income that
cannot be transferred to profit or loss under the equity
method
iii. Changes in fair value of
investments in other equity instruments
iv. Fair value change of enterprise's
own credit risk
v. Other
(2) Other comprehensive income/(loss) that
will be reclassified to profit or loss -19,972,095.04 3,886,194.37
i. Other comprehensive income that
can be transferred to profit or loss under the equity
method
ii. Changes in fair value of other debt
investments
iii. The amount of financial assets
reclassified to other comprehensive income
iv. Provision for credit impairment of
other debt investments
v. Cash flow hedging reserve
vi. Differences arising from the
translation of foreign currency-denominated financial -19,972,095.04 3,886,194.37
statements
vii. Other
Other comprehensive income attributable to
non-controlling interests, net of tax -2,930,955.51
Total comprehensive income 179,345,271.66 130,435,703.35
Total comprehensive income attributable to
owners of the parent 171,049,434.55 131,150,375.78
Total comprehensive income attributable to
non-controlling interests 8,295,837.11 -714,672.43
Earnings per share:
(1) Basic earnings per share 0.14 0.08
(2) Diluted earnings per share 0.14 0.08
Legal representative: Tang Zhuolin Chief in charge of accounting work: Shao Yongfeng Head of accounting institution: Yao B in
73
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
4. Parent Company Income Statement
Unit: RMB yuan
Item H1 2021 H1 2020
1 Operating Revenue 240,083,153.60 159,641,747.94
Less: Cost of sales 122,283,078.03 94,695,220.31
Taxes and surcharges 3,594,496.78 3,903,443.82
Selling expenses 9,976,195.72 10,202,503.51
Administrative expenses 41,466,916.46 40,321,247.10
R&D expenses 17,269,979.76 9,543,406.45
Finance costs -4,029,733.48 -4,909,234.03
Including: Interest expense 1,004,261.21 897,594.00
Interest income 6,838,464.74 6,338,571.34
Add: other income 2,778,877.55 4,597,985.41
Investment income (loss with "-" sign) 66,091,613.74 51,493,566.58
Including: Share of profit or loss of
joint ventures and associates 1,249,209.43 23,671.37
Termination of recognition
of gains on financial assets measured at
amortised cost (loss with "-" sign)
Net exposure hedging gain (loss with
"-" sign)
Gain/loss on changes in fair value (loss
with "-" sign) 21,218,838.14 13,417,186.84
Credit impairment loss (loss is listed
with "-" sign) 771,446.93 1,857,481.56
Asset impairment loss (loss with "-"
sign) 1,232,165.37
Gain/loss on disposal of assets (loss
with "-" sign) 275,491.34
2 Operating profit (loss shall be listed with "-"
sign) 141,890,653.40 77,251,381.17
Add: Non-operating income 61,631.09 4,447.22
Less: Non-operating expenses 60,264.49 1,273,796.22
3 Gross profit (gross loss shall be filled in with
the sign "-") 141,892,020.00 75,982,032.17
Less: Income tax expenses 2,407,968.99 -1,267,500.00
4 Net profit (net loss is listed with "-" sign) 139,484,051.01 77,249,532.17
(1) Net profit from continuing operation (net
loss with "-" sign)
(2) Net profit from termination of operation
(net loss with "-" sign)
5 Other comprehensive income/(loss), net of tax
(1) Other comprehensive loss that will not
be reclassified to profit or loss
74
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
i. Re-measure the change in the
benefit plan
ii. Other comprehensive income
that cannot be transferred to profit or loss under
the equity method
iii. Changes in fair value of
investments in other equity instruments
iv. Fair value change of
enterprise's own credit risk
v. Other
(2) Other comprehensive income/(loss) that
will be reclassified to profit or loss
i. Other comprehensive income
that can be transferred to profit or loss under the
equity method
ii. Changes in fair value of other
debt investments
iii. The amount of financial assets
reclassified to other comprehensive income.
iv. Provision for credit impairment
of other debt investments.
v. Cash flow hedging reserve.
vi. Differences arising from the
translation of foreign currency-denominated
financial statements
vii. Other.
6 Total comprehensive income 139,484,051.01 77,249,532.17
7 Earnings per share:
(1) Basic earnings per share
(2)Diluted earnings per share
5. Consolidated Statement of Cash Flows
Unit: RMB yuan
Item H1 2021 H1 2020
1 Cash flows from operating activities:
Proceeds from sale of goods and
1,550,756,827.80 1,418,765,853.87
rendering of services
Net increase in customer deposits
and interbank deposits
Net increase in borrowing from the
central bank
75
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Net increase in funds transferred to
other financial institutions
Cash received from the premium
of the original insurance contract
Net cash received from reinsurance
business
Net increase in depositors' deposits
and investment funds
Cash that collects interest,
commission and commission
Net increase in borrowed funds
Net increase in funds for
repurchase business
Net cash received by agents
buying and selling securities
Receipts of taxes and surcharges
23,924,614.10 19,045,479.18
refunds
Cash generated from other
29,594,701.84 31,236,687.94
operating activities
Subtotal of cash generated from
1,604,276,143.74 1,469,048,020.99
operating activities
Payments for goods and services 927,944,794.17 926,364,370.99
Net increase in customer loans and
advances
Net increase in central bank and
interbank deposits
Cash to pay the indemnity of the
original insurance contract
Net increase in loan funds
Cash for the payment of interest,
fees and commissions
Cash for the payment of policy
dividends
Cash payments to and on behalf of
292,416,955.30 245,758,501.22
employees
Payments of all types of taxes and
44,806,542.67 48,319,826.97
surcharges
Cash used in other operating 133,084,023.35 219,195,912.49
76
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
activities
Subtotal of cash used in operating
1,398,252,315.49 1,439,638,611.67
activities
Net cash generated from/used in
206,023,828.25 29,409,409.32
operating activities
2 Cash flows from investing activities:
Proceeds from disinvestment 2,880,334,839.28
Investment income 62,687,677.73 19,332,320.61
Net proceeds from the disposal of
fixed assets, intangible assets and other 247,765.69
long-lived assets
Disposal of net cash received by
subsidiaries and other business units
Cash generated from other
2,453,179.98 4,827,403,841.13
investing activities
Subtotal of cash generated from
2,945,723,462.68 4,846,736,161.74
investing activities
Payments for the acquisition of
fixed assets, intangible assets and other 28,354,847.23 86,047,976.06
long-lived assets
Payments for investments 1,717,105,189.38 1,183,245.00
Net increase in pledged loans
Obtain net cash paid by
subsidiaries and other business units
Cash used in other investing
5,144,300,000.00
activities
Subtotal of cash used in investing
1,745,460,036.61 5,231,531,221.06
activities
Net cash generated from/used in
1,200,263,426.07 -384,795,059.32
investing activities
3 Cash flows from financing activities:
Absorb the cash received by the
22,600,000.00
investment
Including: the subsidiary
absorbs the cash received from the
investment of minority shareholders
Borrowings raised 237,730,647.37 75,707,759.83
Cash generated from other 74,850,615.97
77
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
financing activities
Subtotal of cash generated from
312,581,263.34 98,307,759.83
financing activities
Repayment of borrowings 238,444,707.11 159,171,545.53
Interest and dividends paid 3,829,257.01 6,453,887.85
Including: Interest and
dividends paid to minority shareholders
Cash used in other financing
770,560,071.80 290,000,000.00
activities
Subtotal of cash used in financing
1,012,834,035.92 455,625,433.38
activities
Net cash generated from/used in
-700,252,772.58 -357,317,673.55
financing activities
4 Effect of foreign exchange rates
-23,436,767.27 4,994,436.04
changes on cash and cash equivalents
5 Net (decrease)/increase in cash and
682,597,714.47 -707,708,887.51
cash equivalents
Add: Cash and cash equivalents,
860,601,236.78 2,226,724,737.39
beginning of the period
6 Cash and cash equivalents, end of the
1,543,198,951.25 1,519,015,849.88
period
6. Parent Company Statement of Cash Flow
Unit: RMB yuan
Item H1 2021 H1 2020
1 Cash flow generated by business
activities:
Cash received from the sale of
186,517,079.77 235,170,271.11
goods and the provision of services
Receipts of taxes and surcharges
4,894,157.17 6,177,627.73
refunds
Cash generated from other
101,581,249.76 12,900,250.98
operating activities
Subtotal of cash generated from
292,992,486.70 254,248,149.82
operating activities
Payments for goods and services 128,218,993.82 108,542,176.20
Cash payments to and on behalf of 42,396,474.57 64,093,135.32
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
employees
Payments of all types of taxes and
5,067,017.44 5,071,412.19
surcharges
Cash used in other operating
43,563,680.54 111,289,069.98
activities
Subtotal of cash used in operating
219,246,166.37 288,995,793.69
activities
Net cash generated from/used in
73,746,320.33 -34,747,643.87
operating activities
2 Cash flows from investing activities:
Proceeds from disinvestment 2,038,801,239.59
Investment income 79,267,508.64 25,936,359.29
Net proceeds from the disposal of
fixed assets, intangible assets and other 443,000.00
long-lived assets
Disposal of net cash received by
subsidiaries and other business units
Cash generated from other
11,701,200.00 4,783,300,000.00
investing activities
Subtotal of cash generated from
2,130,212,948.23 4,809,236,359.29
investing activities
Payments for the acquisition of
fixed assets, intangible assets and other 5,065,813.67 1,144,384.43
long-lived assets
Payments for investments 890,133,072.92
Obtain net cash paid by
100,000,000.00
subsidiaries and other business units
Cash used in other investing
295,510,000.00 5,100,300,000.00
activities
Subtotal of cash used in investing
1,290,708,886.59 5,101,444,384.43
activities
Net cash generated from/used in
839,504,061.64 -292,208,025.14
investing activities
3 Cash flows from financing activities:
Absorb the cash received by the
22,600,000.00
investment
Cash received for obtaining loans
Cash generated from other 14,343,880.06
79
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
financing activities
Subtotal of cash generated from
14,343,880.06 22,600,000.00
financing activities
Repayment of borrowings 90,000,000.00
Interest and dividends paid 500,429.47 897,594.00
Cash used in other financing
708,837,544.69 290,000,000.00
activities
Subtotal of cash used in financing
709,337,974.16 380,897,594.00
activities
Net cash generated from/used in
-694,994,094.10 -358,297,594.00
financing activities
4 Effect of foreign exchange rates
-564,662.47
changes on cash and cash equivalents
5 Net (decrease)/increase in cash and
218,256,287.87 -685,817,925.48
cash equivalents
Add: Cash and cash equivalents,
126,339,870.71 1,770,491,895.62
beginning of the period
6 Cash and cash equivalents, end of the
344,596,158.58 1,084,673,970.14
period
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
7. Consolidated Statements of Changes in Equity
Amount of current period
Unit: RMB yuan
H1 2021
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: Treasury Special Surplus General Retained Total equity
Share capital Capital surplus comprehensive Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve earnings
shares bonds income
I. At 31 December 2020 1,545,126,957.00 4,002,393,061.81 579,403,185.12 20,026,089.70 10,057,438.97 51,830,974.45 -891,492,837.06 4,158,538,499.75 72,989,978.55 4,231,528,478.30
Add: Adjustments for
0.00 0.00
changes in accounting policies
Adjustments for
0.00 0.00
correction of previous errors
Adjustments for
business combinations involving 0.00 0.00
entities under common control
Other adjustments 0.00 0.00
II. At 1 January 2021 1,545,126,957.00 0.00 0.00 0.00 4,002,393,061.81 579,403,185.12 20,026,089.70 10,057,438.97 51,830,974.45 0.00 -891,492,837.06 0.00 4,158,538,499.75 72,989,978.55 4,231,528,478.30
III. Changes for the period (“ -”
-213,038,790.00 0.00 0.00 0.00 -751,884,748.81 -520,343,059.52 -20,068,085.91 973,774.84 0.00 0.00 191,117,520.46 0.00 -272,557,269.90 85,795,536.41 -186,761,733.49
for decrease)
(I) Total comprehensive income -20,068,085.91 191,117,520.46 171,049,434.55 8,295,837.11 179,345,271.66
(II) Owner’s contributions and
-213,038,790.00 0.00 0.00 0.00 -775,796,249.51 -520,343,059.52 0.00 0.00 0.00 0.00 0.00 0.00 -468,491,979.99 0.00 -468,491,979.99
reduction in capital
1. Ordinary shares increased by 0.00 0.00
81
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
owners
2. Capital increased by holders of
0.00 0.00
other equity instruments
3. Share-based payments included
-900,000.00 2,249,341.80 -20,346,800.00 21,696,141.80 21,696,141.80
in equity
4. Others -212,138,790.00 -778,045,591.31 -499,996,259.52 0.00 0.00 0.00 0.00 -490,188,121.79 -490,188,121.79
(III) Profit distribution
1. Appropriation to surplus
0.00 0.00
reserves
2. Appropriation to general
0.00 0.00
reserve
3. Appropriation to owners (or
0.00 0.00
shareholders)
4. Others 0.00 0.00
(IV) Transfers within equity
1. Increase in capital (or share
0.00 0.00
capital) from capital surplus
2. Increase in capital (or share
0.00 0.00
capital) from surplus reserves
3. Surplus reserves used to offset
0.00 0.00
loss
4. Changes in defined benefit
schemes transferred to retained 0.00 0.00
earnings
5. Other comprehensive income 0.00 0.00
82
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
transferred to retained earnings
6. Others 0.00 0.00
(V) Special reserve 973,774.84 973,774.84 973,774.84
1. Provision in the period 2,257,128.43 2,257,128.43 2,257,128.43
2. Utilisation in the period -1,283,353.59 -1,283,353.59 -1,283,353.59
(VI) Others 23,911,500.70 23,911,500.70 77,499,699.30 101,411,200.00
IV. At 30 June 2021 1,332,088,167.00 0.00 0.00 0.00 3,250,508,313.00 59,060,125.60 -41,996.21 11,031,213.81 51,830,974.45 0.00 -700,375,316.60 0.00 3,885,981,229.85 158,785,514.96 4,044,766,744.81
Amount of previous period
Unit: RMB yuan
H1 2020
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: Treasury Special Surplus General Total equity
Share capital Capital surplus comprehensive Retained earnings Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve
shares bonds income
I. At 31 December 2019 1,838,647,096.00 3,862,377,838.84 160,088,925.60 24,971,085.32 51,830,974.45 -1,280,673,461.14 4,337,064,607.87 65,018,333.68 4,402,082,941.55
Add: Adjustments for changes
in accounting policies
Adjustments for
correction of previous errors
Adjustments for business
combinations involving entities
under common control
Other adjustments
83
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
II. At 1 January 2020 1,838,647,096.00 3,862,377,838.84 160,088,925.60 24,971,085.32 51,830,974.45 -1,280,673,461.14 4,337,064,607.87 65,018,333.68 4,402,082,941.55
III. Changes for the period (“ -” for
-293,520,139.00 223,023,204.67 -80,682,000.00 3,951,913.69 127,198,462.09 141,335,441.45 -714,672.43 140,620,769.02
decrease)
(I) Total comprehensive income 3,951,913.69 127,198,462.09 131,150,375.78 -714,672.43 130,435,703.35
(II) Owner’s contributions and
-293,520,139.00 223,023,204.67 -80,682,000.00 10,185,065.67 10,185,065.67
reduction in capital
1. Ordinary shares increased by
owners
2. Capital increased by holders of
other equity instruments
3. Share-based payments included in
-70,496,933.33 -80,682,000.00 10,185,066.67 10,185,066.67
equity
4. Others -293,520,139.00 293,520,138.00 -1.00 -1.00
(III) Profit distribution
1. Appropriation to surplus reserves
2. Appropriation to general reserve
3. Appropriation to owners (or
shareholders)
4. Others
(IV) Transfers within equity
1. Increase in capital (or share
capital) from capital surplus
2. Increase in capital (or share
capital) from surplus reserves
3. Surplus reserves used to offset
84
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
loss
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserve
1. Provision in the period
2. Utilisation in the period
(VI) Others
IV. At 30 June 2020 1,545,126,957.00 4,085,401,043.51 79,406,925.60 28,922,999.01 51,830,974.45 -1,153,474,999.05 4,478,400,049.32 64,303,661.25 4,542,703,710.57
8. Company Statement of Changes in Equity
Amount of current period
Unit: RMB yuan
H1 2021
Other equity instruments Other
Item Less: Treasury Special Surplus
Share capital Preference Perpetual Capital surplus comprehensive Retained earnings Others Total equity
Others stock reserve reserves
shares bonds income
I. At 31 December
1,545,126,957.00 3,846,323,477.68 579,403,185.12 3,835,986.08 51,830,974.45 -1,183,118,438.56 3,684,595,771.53
2020
Add:
85
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Adjustments for
changes in
accounting
policies
Adjustments for
correction of
previous errors
Other
adjustments
II. At 1 January
1,545,126,957.00 3,846,323,477.68 579,403,185.12 3,835,986.08 51,830,974.45 -1,183,118,438.56 3,684,595,771.53
2021
III. Changes for
the period (“-” for -213,038,790.00 -777,166,786.98 -520,343,059.52 586,670.06 139,484,051.01 -329,791,796.39
decrease)
(I) Total
comprehensive 139,484,051.01 139,484,051.01
income
(II) Owner’s
contributions and
-213,038,790.00 -777,166,786.98 -520,343,059.52 -469,862,517.46
reduction in
capital
1. Ordinary shares
increased by
owners
2. Capital
increased by
86
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
holders of other
equity instruments
3. Share-based
payments -900,000.00 878,804.33 -20,346,800.00 20,325,604.33
included in equity
4. Others -212,138,790.00 -778,045,591.31 -499,996,259.52 -490,188,121.79
(III) Profit
distribution
1. Appropriation
to surplus reserves
2. Appropriation
to owners (or
shareholders)
3. Others
(IV) Transfers
within equity
1. Increase in
capital (or share
capital) from
capital surplus
2. Increase in
capital (or share
capital) from
surplus reserves
3. Surplus
reserves used to
87
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
offset loss
4. Changes in
defined benefit
schemes
transferred to
retained earnings
5. Other
comprehensive
income
transferred to
retained earnings
6. Others
(V) Special
586,670.06 586,670.06
reserve
1. Provision in the
807,820.75 807,820.75
period
2. Utilisation in
-221,150.69 -221,150.69
the period
(VI) Others
IV. At 30 June
1,332,088,167.00 3,069,156,690.70 59,060,125.60 4,422,656.14 51,830,974.45 -1,043,634,387.55 3,354,803,975.14
2021
Amount of previous period
Unit: RMB yuan
H1 2020
Item
Share capital Other equity instruments Capital surplus Less: Treasury Other Special Surplus Retained earnings Others Total equity
88
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Preference Perpetual stock comprehensive reserve reserves
Others
shares bonds income
I. At 31 December
1,838,647,096.00 3,608,591,602.42 160,088,925.60 51,830,974.45 -1,382,513,370.64 3,956,467,376.63
2019
Add:
Adjustments for
changes in
accounting policies
Adjustments for
correction of previous
errors
Other
adjustments
II. At 1 January 2020 1,838,647,096.00 3,608,591,602.42 160,088,925.60 51,830,974.45 -1,382,513,370.64 3,956,467,376.63
III. Changes for the
period (“-” for -293,520,139.00 223,023,204.67 -80,682,000.00 77,249,532.17 87,434,597.84
decrease)
(I) Total
comprehensive 77,249,532.17 77,249,532.17
income
(II) Owner’s
contributions and -293,520,139.00 223,023,204.67 -80,682,000.00 10,185,065.67
reduction in capital
1. Ordinary shares
increased by owners
89
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
2. Capital increased
by holders of other
equity instruments
3. Share-based
payments included in -70,496,933.33 -80,682,000.00 10,185,066.67
equity
4. Others -293,520,139.00 293,520,138.00 -1.00
(III) Profit
distribution
1. Appropriation to
surplus reserves
2. Appropriation to
owners (or
shareholders)
3. Others
(IV) Transfers within
equity
1. Increase in capital
(or share capital)
from capital surplus
2. Increase in capital
(or share capital)
from surplus reserves
3. Surplus reserves
used to offset loss
4. Changes in defined
90
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
benefit schemes
transferred to retained
earnings
5. Other
comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserve
1. Provision in the
period
2. Utilisation in the
period
(VI) Others
IV. At 30 June 2020 1,545,126,957.00 3,831,614,807.09 79,406,925.60 51,830,974.45 -1,305,263,838.47 4,043,901,974.47
91
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
III Corporate Background
Guangdong Dongfang Precision Science & Technology Co., Ltd. (the "Company"), a joint stock company with limited liability
registered in Guangdong Province of the People's Republic of China and established on 9 December 1996, obtained a Business
License for Enterprise Legal Person with a registration number of 440682000040868.
In August 2011, upon the approval by the China Securities Regulatory Commission (CSRC) in the Reply on Approving the Initial
Public Offering of Shares by Guangdong Dongfang Precision Science & Technology Co., Ltd. (ZH.J.X.K. [2011] No. 1237), the
Company issued Renminbi-denominated ordinary shares to the public, and was listed on the Shenzhen Stock Exchange in the same
month. The Company started to use the unified social credit code (914406002318313119) in 2016. The Company is headquartered in
2 Qiangshi Road, Shishan Town, Nanhai District, Foshan City, Guangdong Province, China.
Business scope of the Company:
General items: Network and information security software development; manufacturing of special printing equipment; computer
system services; information system integration services; information consulting services (excluding licensing information consulting
services); manufacturing of material handling equipment; manufacturing of special equipment for pulping and papermaking;
manufacturing of industrial robots; manufacturing of special-purpose equipment (excluding manufacturing of special licensing
equipment); manufacturing of industrial control computers and systems; sales of intelligent material handling equipment; software
sales; intelligent control system integration; AI universal application system; domestic freight forwarding; information technology
consulting services; socio-economic consulting services; environmental protection consulting services; technology intermediary
services. (Except for items subject to approval according to law, business activities shall be conducted independently in acc ordance
with the business license) Licensed items: import and export agency; import and export of goods; import and export of technologies.
(Business activities that require approval according to law shall be subject to the approval by relevant authorities. Specific business
items are indicated in the approval documents or permit documents of relevant authorities.) The Company belongs to the
special-purpose equipment manufacturing industry.
The actual controllers of the Company are Tang Zhuolin and Tang Zhuomian.
These financial statements were authorized for issue by the Board of Directors of the Company on 26 July 2021.
The consolidation scope for consolidated financial statements is determined based on the concept of control. For details of c hanges
during the period, please refer to Note VIII and Note IX.
IV Basis of Preparation of the Financial Statements
1. Basis of Preparation
These financial statements have been prepared in accordance with China’s “Accounting Standards for Business Enterprises — Basic
Standards” promulgated by the Ministry of Finance and the specific accounting standards, application guidance, interpretations and
other relevant regulations issued or amended thereafter (hereafter collectively referred to as “Accounting Standards for Bus iness
Enterprises” or “CAS”).
92
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
2. Going Concern
The financial statements are prepared on a going concern basis.
V Principal Accounting Policies and Accounting Estimates
1. Statement of compliance
The financial statements present truly and completely the financial positions of the Group and the Company as at 30 June 2021, and
the financial performance and the cash flows for the semi-year then ended in accordance with Accounting Standards for Business
Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Business Cycle
The business cycle of the Company is 12 months.
4. Functional currency
The Group’s functional currency and the currency used in preparing the financial statements were Renminbi. The amou nts in the
financial statements were denominated in Renminbi yuan, unless otherwise stated.
The Group’s subsidiaries and associates determine their functional currencies according to the major economic environment in which
they operate the business, and translate into Renminbi when preparing the financial statements.
5. Business combination
Business combinations are classified into business combinations involving entities under common control and business combinat ions
not involving entities under common control.
Business combinations involving entities under common control
A business combination involving entities under common control is a business combination in which all of the combining entities are
ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory.
The acquirer is the entity that obtains control of the other entities participating in the combination at the combination date, and the
other entities participating in the combination are the acquirees. The combination date is the date on which the combining party
effectively obtains control of the parties being combined.
Assets and liabilities obtained by combining party in the business combination involving entities under c ommon control (including
goodwill arising from the acquisition of the merged party by the ultimate controller) are recognised on the basis of their ca rrying
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amounts at the combination date recorded on the financial statements of the ultimate controlling pa rty. The difference between the
carrying amount of the consideration paid for the combination (or aggregate face values of the shares issued) and the carrying amount
of the net assets obtained is adjusted to capital surplus. If the capital surplus are not sufficient to absorb the difference, any excess is
adjusted to retained earnings.
Business combinations not involving entities under common control
A business combination not involving entities under common control is a business combination in which all of the combining entities
are not ultimately controlled by the same party or parties both before and after the business combination. The acquirer is the entity
that obtains control of the other entities participating in the combination at the acquisition date, and the other entities participating in
the combination are the acquirees. The acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
The acquiree’s identifiable assets, liabilities and contingent liabilities are recognised at their fair values at the acquisition date.
The excess of the sum of the consideration paid (or equities issued) for business combination and equity interests in the acquiree held
prior to the date of acquisition over the share of the attributable net identifiable assets of the acquiree, measured at fair value, was
recognised as goodwill, which is subsequently measured at cost less cumulative impairment loss. In case the fair value of the sum of
the consideration paid (or equities issued) and equity interests in the acquire held prior to the date of acquisition is less than the fair
value of the share of the attributable net identifiable assets of the acquiree, a review of the measurement of the fair value s of the
identifiable assets, liabilities and contingent liabilities, the consideration paid for the combination (or equity issued) and the equity
interests in the acquiree held prior to the date of acquisition is conducted. If the review indicates that the fair value of the sum of the
consideration paid (or equities issued) and equity interests in the acquiree held prior to the date of acquisition is indeed less than the
fair value of the share of the attributable net identifiable assets of the acquiree, the difference is recognised in prof it or loss.
Where a business combination not involving entities under common control realized step by step through multiple transactions, the
long-term equity investments held by the acquiree prior to the purchase date shall be remeasured at the fair value of the long-term
equity investments on the purchase date, and the difference between the fair value and their carrying value shall be recognized in
profit or loss. For other comprehensive income of the long-term equity investments under the equity method held by the acquiree
prior to the purchase date, accounting treatment shall be performed on the same basis as the direct disposal of relevant asse ts or
liabilities by the invested entity, and other changes in equity than net profit and loss, other comprehensive income and the distribution
of profits shall be converted into current profits and losses on the purchase date. The changes in the fair value of the equity
instrument investments held by the acquiree prior to the purchase date and accumulated in other comprehensive income prior to the
purchase date shall be transferred to retained profits and losses.
6. Consolidated financial statements
The consolidation scope for consolidated financial statements is determined based on the concept of control, including the Company
and all subsidiaries’ financial statements. Subsidiaries are those enterprises or entities which the Company has control over (including
enterprises, separable components of investee units and structured entities controlled by the Company).
The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting
policies. Any inconsistent accounting policies have been adjusted to become consistent with the Company’s accounting policies. All
assets, liabilities, equities, revenues, costs and cash flows arising from intercompany transactions are eliminated on consolidation.
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The excess of current loss attributable to non-controlling shareholders of a subsidiary over their entitle ments to the opening balance
of equity shall be charged to non-controlling interests.
For subsidiaries obtained through a business combination not involving entities under common control, the operating results a nd cash
flows of the acquirees will be recognised in consolidated financial statements from the date the Group effectively obtains the control
until the date that control is terminated. When consolidated financial statement is prepared, the subsidiaries’ financial sta tements will
be adjusted based on the fair values of the identifiable assets, liabilities and contingent liabilities at the acquisition date.
In the event of the change in one or more elements of control as a result of changes in relevant facts and conditions, the Gr oup
reassesses whether it has control over the investee.
7. Cash and cash equivalents
Cash comprises cash on hand and deposits readily available for payments. Cash equivalents represent short-term highly liquid
investments which are readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value.
8. Foreign currency translation
For foreign currency transactions, the Group translates the foreign currency into its functional currency.
Upon initial recognition, foreign currency transactions are translated into the functional currency using the average exchange rate of
the period in which transactions occur. At the balance sheet date, foreign currency monetary items are translated using the s pot
exchange rate at the balance sheet date. The translation differences arising from the settlement and foreign currency monetary items
are recognised in profit or loss. Also at the balance sheet date, foreign currency non-monetary items measured at historical cost
continue to be translated using the spot exchange rate at the dates of the transactions and it does not change its carrying amount in
functional currency. Foreign currency non-monetary items measured at fair value are translated using the spot exchange rate. The
differences arising from the above translations are recognised in current profit or loss or other comprehensive income according to
the nature of foreign currency non-monetary items.
The Group translates the functional currencies of foreign operations into Renminbi when prepa ring the financial statements. Asset
and liability items in the balance sheet are translated at the spot exchange rate prevailing at the balance sheet date. Equity items,
except for retained earnings, are translated at the spot exchange rates at the date when such items arose. Revenue and expense items
in the income statement are translated using the average exchange rate for the periods when transactions occur. Translation
differences arising from the aforesaid translation of financial statements denominated in foreign currency shall be recognised as other
comprehensive income. When foreign operations are disposed, other comprehensive income relating to the foreign operation is
transferred to current profit or loss. Partial disposal shall be recognised on a pro-rata basis.
Cash flows denominated in foreign currencies and foreign subsidiaries’ cash flows are translated using the average exchange r ate for
the period when cash flows occur. The impact on cash by the fluctuation of exchange rates is presented as a separate line item of
reconciliation in the statement of cash flows.
9. Financial instruments
Financial instruments refer to the contracts which give rise to a financial asset in one entity and a financial liability or equity
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
instrument in another entity.
Recognition and derecognition of financial instruments
The Group recognises a financial asset or a financial liability when it becomes a party to the contractual provisions of the financial
instrument.
A financial asset (or part of it, or a part of a group of similar financial asset) is derecognised when one of the following criteria is met,
that is, when a financial asset is written off from its account and balance sheet:
（1） The right of receiving the cash flow generated from the financial asset has expired;
（2） The right of receiving cash flow generated by the financial assets is transferred, or an obligation of paying the full amount
of cash flow received to third parties in a timely manner has been undertaken under “pass-through” agreements, where (a)
substantially all risks and rewards of the ownership of such type of financial assets have been transferred, or (b) control
over such type of financial assets has not been retained even though substantially all risks and rewards of the ownership of
such type of financial assets have been neither transferred nor retained.
If the obligation of financial liability has been fulfilled, cancelled or expired, the financial liability is derecognised. If the present
financial liability is substituted by the same debtee with another liability differing in substance, or the terms of the present liability
have been substantially modified, this substitution or modification is treated as derecognition of a present liability and re cognition of
a new liability with any arising differences recognised in profit or loss.
Conventional dealings in financial assets are recognised or derecognised under the trade day accounting method. Conventional
dealings refer to the receipt or delivery of financial assets within periods stipulated by the law and according to usual practices. The
trade day is the date on which the Group undertakes to buy or sell a financial asset.
Classification and measurement of financial assets
At initial recognition, the Group classifies its financial assets into: financial assets at fair value through profit or loss, financial assets
at amortised cost, or financial assets at fair value through other comprehensive income, according to the Group’s business model for
managing financial assets and the contract cash flow characteristics of the financial assets. When and only when the Group changes
its business model of managing financial assets, all relevant financial assets affected will be re -classified.
Financial assets are measured at fair value on initial recognition, but if the accounts receivable or notes receivable generated from the
sales of goods or provision of services do not contain significant financing components or do not consider financing components of
no longer than one year, the initia l measurement will be based on the transaction price.
For financial assets at fair value through profit or loss, the relevant transaction costs are directly recognised in profit or loss; for other
financial assets, the relevant transaction costs are recognized in their initial recognition amount.
The subsequent measurement of financial assets is dependent on its classification:
Debt instruments measured at amortised cost
Financial assets fulfilling all of the following conditions are classified as financ ial assets at amortised cost: the objective of the
Group’s business management model in respect of such type of financial assets is to generate contract cash flow; the contract terms
of such type of financial assets provide that cash flow generated on specific dates represents interest payment in relation to principal
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amounts based on outstanding principal amounts only. Interest income from such type of financial assets are recognised using the
effective interest rate method, and any profit or loss arising from derecognition, amendments or impairment shall be charged to
current profit or loss.
Debt instruments at fair value through other comprehensive income
Financial assets fulfilling all of the following conditions are classified as financial assets at fair value through other comprehensive
income: the objective of the Group’s business management model in respect of such type of financial assets is both to generate
contract cash flow and to sell such type of financial assets; the contract terms of such type of financial assets provide that cash flow
generated on specific dates represents interest payment in relation to principal amounts based on outstanding principal amounts only.
Interest income from this type of financial assets is recognized using the effective interest rate method. Other than interest income,
impairment loss and exchange differences which shall be recognised as current profit or loss, other fair value changes shall be
included in other comprehensive income. Upon derecognition of the financial assets, the cumulative gains or losses previously
included in other comprehensive income shall be transferred from other comprehensive income to current profit or loss.
Financial assets at fair value through profit or loss
Other than financial assets measured at amortised cost and financial assets at fair value through other comprehensive income as
aforementioned, all financial assets are classified as financial assets at fair value through profit or loss, which are subse quently
measured at fair value, any changes of which are recognised in current profit or loss.
Classification and measurement of financial liabilities
The Group classifies its financial liabilities at initial recognition: financial liabilities at fair value through profit or loss, and other
financial liabilities. For financial liabilities at fair value through profit or loss, the relevant transaction costs are directly recognised in
profit or loss; for other financial liabilities, the relevant transaction costs are recognised in their initial recognition amount.
The subsequent measurement of financial liabilities is dependent on its classification:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include mainly financial liabilities held for trading(comprising derivatives
classified as financial liabilities). Financial liabilities held for trading (comprising derivatives classified as financial liabilities) are
subsequently measured at fair value and all changes are recognised in current profit or loss.
Other financial liabilities
Subsequent to initial recognition, these financial liabilities are carried at amortised cost using the effective interest method.
Impairment of financial instruments
The Group performs impairment treatment on financial assets at amortised cost, debt instruments at fair value through other
comprehensive income and contract assets based on expected credit losses (ECL) and recognises allowances for losses.
For receivables and contract assets that do not contain significant financing components, the Group adopts a simplified measurement
method to measure allowances for losses based on an amount equivalent to the lifetime expected credit losses.
For receivables and contract assets that contain a significant financing component, the Group adopts a simplified measurement
method to measure allowances for losses based on an amount equivalent to the lifetime expected credit losses.
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Financial assets other than those measured with simplified valuation methods, the Group evaluates at each balance sheet date whether
its credit risk has significantly increased since initial recognition. The period during which credit risk has not significantly increased
since initial recognition is considered the first stage, at which the Group shall measure loss allowance based on the amount of
expected credit loss for the next 12 months and shall compute interest income according to the book balance and effective interest
rate; the period during which credit risk has significantly increased since initial recognition although no credit impairment has
occurred is considered the second stage, at which the Group shall measure loss allowance based on the amount of expected cred it loss
for the entire valid period and shall compute interest income according to the book balance and effective interest rate; The period
during which credit impairment has occurred after initial recognition is considered the third stage, at which the Group shall measure
loss allowance based on the amount of the lifetime expected credit loss and shall compute interest income according to the amortised
cost and effective interest rate.
The Group estimates the expected credit loss of financial instruments individually and on a group basis. The Group considers the
credit risk features of different customers and estimates the expected credit losses of financial instruments based on aging portfolio.
When the Group no longer reasonably expects to be able to fully or partially recover the contract cash flow of financial assets, the
Group directly writes down the book balance of such financial assets.
Financial guarantee contracts
A financial guarantee contract is a contract under which the issuer shall indemnify the contract holder suffering losse s with a
specified amount in the event that the debtor fails to repay its debt in accordance with the terms of the debt instrument. Financial
guarantee contracts are measured at fair value at initial recognition, other than financial guarantee contracts de signated as financial
liabilities at fair value through profit or loss, other financial guarantee contracts shall be subsequently measured at the higher of the
amount of allowance for expected credit loss determined as at the balance sheet date after initial recognition and the amount at initial
recognition less the cumulative amortised amount determined in accordance with revenue recognition principles.
Derivative financial instruments
Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are
subsequently re-measured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair
value is negative.
Gains or losses arising from changes in the fair value of derivative instruments shall be directly recognised in current profit or loss.
Transfer of financial assets
If the Group has transferred substantially all the risks and rewards associated with the ownership of a financial asset to the transferee,
the asset should be derecognised. If the Group retains substantially all the risks and rewards of ownership of a financial as set, the
asset should not be derecognised.
When the Group has neither transferred nor retained substantia lly all the risks and rewards of ownership of the financial asset, it may
either derecognise the financial asset and recognise any associated assets and liabilities if control of the financial asset has not been
retained; or recognises the financial asset to the extent of its continuing involvement in the transferred financial asset and recognises
an associated liability if control has been retained.
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Assets formed by the continuing involvement by way of the provision of financial guarantee in respect of the transferred financial
assets shall be recognised as the lower of the carrying value of the financial asset and the amount of financial guarantee. The amount
of financial guarantee means the maximum amount among considerations received to be required for repayment.
10. Inventories
Inventories include raw materials, work-in-progress, finished goods, product deliveries, semi-finished goods, materials consigned for
processing, etc.
Inventories are initially recorded at costs. Inventories’ costs include purchasing costs, processing costs and other costs. Actual costs
of product deliveries are recognised using the weighted average method. Turnover materials include low-value consumables,
packaging materials, etc., which are expensed in full.
The Group adopts the perpetual inventory system.
Inventories on the balance sheet date are stated at the lower of cost or net realisable value. Inventory valuation allowance is made and
recognised in profit or loss when the net realisable value is lower than cost. If the factors that give rise to the allowance in prior years
are not in effect in the current period, as a result that the net realisable value of the inventories is higher than cost, allowance should
be reversed within the impaired cost, and recognised in profit or loss.
Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimate d costs to
completion and estimated costs necessary to make the sale and related taxes. Valuation allowances for raw materials are established
by category, and those for finished goods by individual item. For inventories that relate to products produced and sold in the same
region, have the same or similar ultimate purpose, and are difficult to separate in measurement, valuation allowances are established
on a combined basis.
11. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.
Long-term equity investments were recorded at initial investment cost on acquisition. For long-term equity investments acquired
through the business combination of entities under common control, the initial investment cost shall be the share of carrying value of
the equity of the merged party at the date of combination as stated in the consolidated financial statements of the ultimate controlling
party. Any difference between the initial investment cost and the carrying value of the consideration for the combination shall be
dealt with by adjusting the capital surplus(if the capital surplus are insufficient for setting off the difference, such difference shall be
further set off against retained earnings). Upon disposal of the investment, other comprehensive income prior to the date of
combination shall be dealt with on the same basis as if the relevant assets or liabilities were disposed of directly by the investee.
Equity recognised as a result of changes in equity other than the set-off of profit and loss, other comprehensive income and profit
allocation of the investee shall be transferred to current profit and loss upon disposal of the investment. Items which remain
long-term equity investments after the disposal shall be accounted for on a pro-rata basis, while items reclassified as financial
instruments following the disposal shall be accounted for in full. For long-term equity investments acquired through the business
combination of entities not under common control, the initial investment cost shall be the cost of combination (for business
combinations of entities not under common control achieved in stages through multiple transactions, the initial investment cost shall
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
be the sum of the carrying value of the equity investment in the acquired party held at the date of acquisition and new investment cost
incurred as at the date of acquisition). The cost of combination shall be the sum of assets contributed by the acquiring part y, liabilities
incurred or assumed by the acquiring party and the fair value of equity securities issued. Upon disposal of the investment, other
comprehensive income recognised under the equity method held prior to the date of acquisition shall be dealt with on the same basis
as if the relevant assets or liabilities were disposed of directly by the investee. Equity recognised as a result of changes in equity other
than the set-off of profit and loss, other comprehensive income and profit allocation of the investee shall be transferred to current
profit and loss upon disposal of the investment. Items which remain long-term equity investments after the disposal shall be
accounted for on a pro-rata basis, while items reclassified as financial instruments following the disposal shall be accounted for in
full. The initial investment cost of long-term equity investments other than those acquired through business combination shall be
recognised in accordance with the following: for those acquired by way of cash payments, the initial investment cost shall be the
consideration actually paid plus expenses, tax amounts and other necessary outgoings directly related to the acquisition of the
long-term equity investments. For long-term equity investments acquired by way of debt restructuring, the initial investment cost
shall be determined in accordance with “CAS No. 12 — Debt Restructuring.”
In the financial statements of the Company, the cost method is used for long term equity investments in investees over which the
Company exercises control. Control is defined as the power exercisable over the investee, the entitlement to variable return through
involvement in the activities of the investee and the ability to influence the amount of return using the power over the inve stee.
When the cost method is used, long-term equity investments are measured at initial cost on acquisition. When additional investments
are made or investments are recouped, the cost of longterm equity investments shall be adjusted. Cash dividend or profit distribution
declared by the investee shall be recognised as investment income for the period.
The equity method is used to account for long-term equity investments when the Group can jointly control or has significant
influence over the invested entity. Joint control is the contractually agreed sharing of control of an arrangement, which exists only
when decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant influe nce means
having the authority to take part in the decision over the financial and operational policies but not the authority to control or jointly
control with other parties the formulation of such policies.
Under the equity method, any excess of the initial investment cost over the Company’s share of the net fair value of the inve stment’s
identifiable assets and liabilities is included in the initial investment cost of the long-term equity investment. When the carrying
amount of the investment is less than the Company’s share of the fair value of the investment’s identifiable net assets, the difference
is recognised in profit or loss of the current period and debited to long-term equity investments.
Under the equity method, after the long-term equity investments are acquired, investment gains or losses and other comprehensive
income are recognised according to the entitled share of net profit or loss and other comprehensive income of the investee and the
carrying amount of the long-term equity investment is adjusted accordingly. When recognising the Group’s share of the net profit or
loss of the invested entity, the Group makes adjustments based on fair values of the investees’ identifiable assets and liabilities at the
acquisition date in accordance with the Group’s accounting policy and accounting period to investee’s net profits, eliminatin g
pro-rata profit or loss from internal transactions with associates and joint ventures attributed to investor (except that loss from
inter-group transactions deemed as asset impairment loss shall be fully recognised), provided that invested or sold assets constituting
businesses shall be excluded. When the invested enterprise declares profit distribution or cash dividends, the carrying amount of
investment is adjusted down by the Group’s share of the profit distribution and dividends. The Group shall derecognize its share of
the losses of the investee after the long-term equity investment together with any long-term interests that in substance forms part of
the Group’s net investment in the investee are reduced to zero, except to the extent that the Group has incurred obliga tions to assume
additional losses. The Group also adjusts the carrying amount of long-term equity investments for other changes in owner’s equity of
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
the investees (other than the net-off of net profits or losses, other comprehensive income and profit distr ibution of the investee), and
includes the corresponding adjustment in equity.
On disposal of the long-term equity investments, the difference between carrying value and market price is recognised in profit or
loss for the current period. For long-term equity investments under equity method, when the use of the equity method is discontinued,
other comprehensive income previously accounted for under the equity method shall be dealt with on the same basis as if the relevant
assets or liabilities were disposed of directly by the investee. Equity recognised as a result of changes in equity other than the net-off
of profit and loss, other comprehensive income and profit distribution of the investee shall be transferred in full to current profit and
loss. If the equity method remains in use, other comprehensive income previously accounted for under the equity method shall be
dealt with on the same basis as if the relevant assets or liabilities were disposed of directly by the investee and transferr ed to current
profit and loss on a pro-rata basis. Equity recognised as a result of changes in shareholders’ equity other than the net-off of profit and
loss, other comprehensive income and profit distribution of the investee shall be transferred to current profit and los s on a pro-rata
basis.
12. Fixed Assets
(1) Recognization Condition
A fixed asset is recognised when, and only when, it is probable that future economic benefits that are associated with the fixed asset
will flow to the Group and the cost can be measured reliably. Subsequent expenditures related to a fixed asset are recognised in the
carrying amount of the fixed asset if the above recognition criteria are met, and the carrying value of the replaced part is
derecognised; otherwise, those expenditures are recognised in profit or loss as incurred.
Fixed assets are initially recognised at cost. Cost of purchased fixed assets includes purchasing price, relevant taxes, and any directly
attributable expenditure for bringing the asset to working conditions for its intended use.
Except for those incurred by using the accrued expenses for safety production, fixed assets are depreciated on a straight-line basis,
and the respective estimated useful lives, estimated residual value ratios and annual depreciation rates are as follows:
The Group reviews, at least at each year end, useful lives, estimated residual values and depreciation methods of fixed asset s and
makes adjustments if necessary.
(2) Depreciation method
Estimated residual
Depreciation method Useful life Annual depreciation rate
value ratio
Buildings and constructions Straight-line method 20-40 years 5.00% 2.38%-4.75%
Machinery Straight-line method 5-18 years 5.00% 5.28%-19.00%
Transportation equipment Straight-line method 5-10 years 5.00% 9.5%-19.00%
Electronic equipment Straight-line method 3-10 years 5.00% 9.5%-31.67%
Office equipment Straight-line method 3-10 years 5.00% 9.5%-31.67%
Other equipment Straight-line method 5-10 years 5.00% 9.5%-19.00%
13. Construction in progress
Construction in progress is measured at the actual construction expenditures, including necessary project work expenses incurred
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
during the period while construction is in progress, and other related fees.
Construction in progress is transferred into fixed assets when it is ready for its intended use.
14. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowings of funds, which include
borrowing interest, amortisation of discount or premium on debt, other supplementary costs and certain foreign exchange differences
that occurred from the borrowings in foreign currencies.
15. Right-of-use assets
The Group as lessee
On the inception of a lease, the Group recognises the right-of-use assets and lease liabilities in respect of the lease. The right-of-use
assets are initially measured at cost, including the initial measurement amount of lease liabilities, the lease payment amount paid on
or prior to the inception of the lease (less the related amount of lease incentives already enjoyed), the initial direct cost incurred, and
the anticipated cost of dismantling and removing the leasehold property, restoring the site where the leasehold property is located, or
bringing the leasehold property back to the state agreed upon in the lease terms.
The Group adopts the straight-line method to depreciate the right-of-use assets. If it can be reasonably ascertained that the ownership
of the leasehold property can be obtained by the expiry of the lease term, the Group will depreciate the leasehold property within its
remaining useful life. Otherwise, the leasehold property will be depreciated within the shorter of the lease term and its remaining
useful life.
The lease liabilities are initially measured at the present value of the lease payments outstanding on the inception of the lease. The
rate of discount is the interest rate implicit in lease. If the interest rate implicit in lease cannot be determined, the inc remental interest
rate on borrowing will be used as the rate of discount.
The Group calculates the interest expenses of the lease liabilities during each period of the lease term at a fixed periodic interest rate,
and includes them in profit or loss for the current period or the cost of relevant assets. Variable lease payments that are not covered in
the measurement of the lease liabilities are included in profit or loss for the current period or the cost of relevant assets when actually
incurred.
After the inception of the lease, if any of the following circumstances occurs, the Group will remeasure the lease liabilities based on
the present value of the lease payments after the change:
- The amount payable anticipated based on the guaranteed residual value changes;
- Any indicator or ratio used to determine the lease payments changes;
- The Group's assessment of the option to purchase, the option to renew the lease, or the option to terminate the lease changes , or the
actual exercise of the option to renew the lease or the option to terminate the lease is inconsistent with the original assessment result.
During the remeasurement of the lease liabilities, the Group will adjust the carrying value of the right-of-use assets accordingly. If
the carrying value of the right-of-use assets has been reduced to zero, but the lease liabilities still need to be further reduced, the
Group will include the remaining amount in profit or loss for the current period.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
The Group has chosen not to recognise the right-of-use assets and lease liabilities for short-term leases (leases with a lease term of
no more than 12 months) and low-value asset leases, and will include the related lease payments in profit or loss for the current
period or the cost of relevant assets according to the straight-line method during each period of the lease term.
16. Intangible assets
（1） Valuation method, useful life, impairment test
Intangible assets are recognised only when it is probable that economic benefits relating to such intangible assets would flow into the
Group and that their cost can be reliably measured. Intangible assets are initially measured at cost, provided that intangible assets
which are acquired in a business combination not under common control and whose fair value can be reliably measured shall be
separately recognised as intangible assets at fair value.
Useful life of an intangible asset is determined by the period over which it is expected to bring economic benefits to the Gr oup. For
an intangible asset with no foreseeable limit to the period over which it is expected to br ing economic benefits to the Group, it is
treated as an intangible asset with indefinite useful life.
Useful life of respective intangible assets is as follows:
Useful life
Land use rights 40-50 years
Land ownership (overseas) Indefinite
Trademarks 5-10 years
Trademarks (overseas) Uncertain
Patents 5-10 years
Property in land acquired by the Group is normally accounted for as intangible assets. Property in land and buildings relatin g to
plants constructed by the Group are accounted for as intangible assets and fixed assets, respectively. The costs for acquiring land and
buildings are apportioned between the property in land and buildings, or accounted for as fixed assets if they cannot be apportioned.
The straight-line amortisation method is used during the useful life period for intangible assets with definite useful lives. The Group
reviews, at least at each year end, useful lives and amortization method for intangible assets with definite lives and makes adjustment
when necessary.
For intangible assets with indefinite useful life, impairment tests shall be conducted annually regardless of whether there are
indications of impairment. Such intangible assets shall not be amortized and their useful life shall be reviewed during each
accounting period. If there is evidence suggesting that their useful life is limited, accounting treatment will be performed according to
the above policy on intangible assets with definite useful life.
The land ownership of Fosber S.p.A. ("Fosber Group"), a subsidiary of the Company, in Italy has a permanent term, and the
Company believes that the land ownership will be used and will bring expected inflows of economic benefits to the Company in the
foreseeable future, so its useful life is regarded as indefinite. The trademarks registered by subsidiaries Fosber Group and Fosber
America, Inc. ("Fosber America") have a useful life in accordance with the law, but at the expiration of the protection period, Fosber
Group and Fosber America can apply for an extension at low service charges, so the Company will benefit from the above
trademarks in the long term. Thus, the Company recognized the trademark use right as intangible assets with indefinite useful life.
The useful life of intangible assets with indefinite useful life will be reviewed at the end of each year. After review, the useful life of
the above intangible assets is still uncertain.
（2） Accounting policies for expenses for internal research and development
The Group classifies the expenses for internal research and development as research costs and development costs. All research costs
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are charged to the current profit or loss as incurred. Expenditure incurred on projects to develop new products is capitalise d and
deferred only when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available
for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future econo mic benefits
(including demonstration that the product derived from the intangible asset or the intangible asset itself will be marketable or, in the
case of internal use, the usefulness of the intangible asset as such), the availability of technical and financial resources to complete
the project and procure the use or sale of the intangible asset, and the ability to measure reliably the expenditure during the
development. Development costs which do not meet these criteria is recognized in profit or loss when incurred.
17. Long-term asset impairment
The Group assesses impairment of assets other than inventories, contract assets and assets related to contract costs, deferre d tax
assets and financial assets, using the methods described below:
The Group assesses at each balance sheet date whether there is an indication that a non-financial asset may be impaired. If any such
indication exists, the Group makes an estimate of the asset’s recoverable amount and performs a test of impairment for the as set. For
goodwill generated from business consolidation and intangible assets with indefinite useful lives, tests for impairment are performed
at least annually regardless of whether there are indications of impairment. Intangible assets which are not yet ready for us e are also
tested annually for impairment.
The recoverable amount is the higher of the asset’s fair value less costs to sell and its present value of estimated future c ash flows.
The Group estimates recoverable value for individual assets. When it is difficult to estimate individually, the recoverable value of the
cash generating units which the asset belongs to will be estimated. The definition of cash generating units is determined on the basis
of whether the cash generating units generate cash flows which are largely independent of those from other cash generating units.
Where the carrying amount of an asset or a cash generating unit exceeds its recoverable amount, the asset or cash generating unit is
considered impaired and is written down to its recoverable amount. The difference between the carrying amount and recoverable
amount is recognised in profit or loss and allowance for impairment is made accordingly.
In connection with impairment tests for goodwill, the carrying value of goodwill arising from business combination is allocated to
relevant cash generating units (“CGU”) from the date of acquisition on a reasonable basis. If it is difficult to allocate suc h goodwill to
a relevant CGU, it should be allocated to a relevant CGU group. A relevant CGU or CGU group is defined as one which can benefit
from the synergies of the business combination and is not larger than the reporting segments determined by the Group.
In connection with impairment tests for CGUs or CGU groups that comprise goodwill, where indications of impairment exists in a
CGU or CGU group related to goodwill, impairment tests should be performed first on CGUs or CGU groups that do not comprise
goodwill and recognize impairment loss after estimating the recoverable amount. Then impairment tests on CGUs or CGU groups
that comprise goodwill should be performed and the carrying value and recoverable amount should be compared. Where the
recoverable amount is lower than the carrying value, the impairment loss should first be offset against the carrying value of the
goodwill allocated to CGUs or CGU groups and then against assets in the CGUs or CGU groups other than goodwill in proportion to
the weighting of these assets.
Previously recognised impairment losses are not reversed in subsequent periods.
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18. Long-term prepaid expenses
Long-term prepaid expenses are amortized using the straight-line method, with the amortization periods as follows:
Amortization period
Decoration expenditures 3-5 years
Amortization of moulds 3 years
Other expenditures 3-5 years
19. Contract liabilities
Contract liabilities are the obligation to pass products or services to customers in connection with customer consideration received or
receivable, for example, amounts received prior to the transfer of the promised products or services.
20. Employee benefits
(1) Short-term benefits
For accounting periods during which services are rendered by employees, short-term benefits that will incur is recognised as liability
and included in profit and loss or related capital costs.
(2) Retirement benefits
Retirement benefits (defined contribution schemes)
Employees of the Group participated in pension insurance and unemployment insurance schemes managed by the local government.
The contribution costs are charged as asset cost or to profit or loss when incurred.
Retirement benefits (defined benefit schemes)
The Group operates a defined benefit pension scheme, which requires payments to an independently operated fund. No funds have
been injected into the scheme. The cost of benefits provided under the defined benefit scheme is calculated using the expected benefit
accrual unit approach.
Remeasurement arising from defined benefit pension schemes, including actuarial gains or losses, changes in the asset cap eff ect
(deducting amounts included in net interest on net liabilities of the defined benefit schemes) and return on scheme assets (deducting
amounts included in net interest on net liabilities of the defined benefit schemes) are instantly recognised in the balance sheet and
charged to equity through other comprehensive income for the period during which it is incurred. It will not be reversed to profit and
loss in subsequent periods.
Previous service costs are recognised as current expenses when: the defined benefit scheme is revised, or relevant restructuring costs
are recognised by the Group, whichever earlier.
Net interest is arrived at by multiplying net liabilities or net assets of defined benefits with a discount rate. Changes in net obligations
of defined benefits are recognised as cost of sales, administrative expenses, R&D expenses, selling expenses and finance costs in the
income statement. Service costs included current services costs, past service costs and settlement of profit or loss. Net interest
included interest income from scheme assets, interest expenses for scheme obligations and interest of the asset cap effect.
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21. Provisions
Other than contingent consideration and assumed contingent liabilities in a business combination not involving entities under
common control, the Group recognises as provision an obligation that is related to contingent matters when all of the following
criteria are fulfilled:
（1） the obligation is a present obligation of the Group;
（2） the obligation would probably result in an outflow of economic benefits from the Group;
（3） the obligation could be reliably measured.
Provisions are initially measured according to the best estimate of expenses on fulfilling the current liabilities, in connec tion with the
risk, uncertainty and timing value of the currency. The carrying value of the provisions would be reassessed on every balance sheet
date. The carrying value will be adjusted to the best estimated value if there is certain evidence that the current carrying value is not
the best estimate.
The contingent liabilities obtained from a business combination not involving entities under common control shall be measured at
fair value at the time of initial recognition. After the initial recognition, according to the amount confirmed by provisions and the
balance of the initial recognition amount after deducting the accumulated amortization determined by the revenue recognition
principle, the higher of the two shall prevail for subsequent measurements.
22. Share-based payments
Share-based payments can be distinguished into equity-settled share-based payments and cash-settled share-based payments.
Equity-settled share-based payments are transactions of the Group settled through the payment of shares or other equity instruments
in consideration for receiving services.
Equity-settled share-based payments made in exchange for services rendered by employees are measured at the fair value of equity
instruments granted to employees. Instruments which are vested immediately upon the grant are charged to relevant costs or expenses
at the fair value on the date of grant and the capital surplus are credited accordingly. Instruments of which vesting is cond itional upon
completion of services or fulfillment of performance conditions are measured by recognising services rendered during the period in
relevant costs or expenses and crediting the capital surplus accordingly at the fair value on the date of grant according to the best
estimates of the number of exercisable equity instruments conducted by the Group at each balance sheet date during the pending
period. The fair value of equity instruments is determined using the closing price of the Company’s stock on the date of grant.
No expenses are recognised for awards that do not ultimately vest due to non-fulfillment of nonmarket conditions and/or vesting
conditions. For the market or non-vesting condition under the share-based payments agreement, it should be treated as vesting
irrespective of whether or not the market or non-vesting condition is satisfied, provided that other performance condition and/or
vesting conditions are satisfied.
23. Revenue generating from contracts with customers
Accounting policies used in revenue recognition and measurement
The Group recognises its revenue upon the fulfilment of contractual performance obligations under a contract, namely, when the
customer obtains control over the relevant products or services. The acquisition control over relevant products or services s hall mean
the ability to direct the use of the products or the provision of the services and receive substantially all economic benefits derived
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therefrom.
Contract for the sales of products
The product sales contract between the Group and its customers typically includes different contractual performance obligations for
the transfer of products and the rendering of services. With respect to the sales of products, the Group typically recognises its revenue
at the time when the customer takes control over the products, taking into account the following factors: the acquisition of the current
right to receive payments for the products, the transfer of major risks and rewards of ownership, the transfer of the legal t itle of the
products, the transfer of the physical assets of the products, and customers’ acceptance of the products.
Contract for the rendering of installation services
The service contract between the Group and its customers includes contractual performance obligations for installation servic es. As
the customer is able to forthwith obtain and consume the economic benefits brought by the Group’s contractual performance whe n
the Group performs a contract, the Group considers such contractual performance obligations to be obligations performed over a
period of time, and revenue shall be recognised on each balance sheet date according to the progress of installation.
Significant financing component
Where a contract contains a significant financing component, the Group determines transaction prices based on amounts payable
assumed to be settled in cash by customers immediately upon the acquisition of control over the products or services. The dif ference
between such transaction price and contract consideration is amortised over the contract period using the effective interest method
based on a ratio that discounts the nominal contractual consideration to the current selling price of the products or service s. The
Group shall not give consideration to any significant financing component in a contract if the gap between the customer’s acquisition
of control over the products or services and payment of consideration is expected to be less than 1 year.
Warranty clauses
The Group provides quality assurance for products sold in accordance with contract terms and laws and regulations. The accounting
treatment of quality assurance in the form of warranty assuring customers products sold are in compliance with required standards is
set out in Note III.18. Where the Group provides a service warranty for a standalone service in addition to the assurance of
compliance of products with required standards, such warranty is treated as a standalone contractual performance obligation, and a
portion of the transaction price shall be allocated to the service warranty based on a percentage of the standalone price for the
provision of product and service warranty. When assessing whether a warranty is rendering a standalone service in addition to
providing guarantee to customers that all sold goods are in compliance with required standards, the Group will consider whether or
not such warranty is a statutory requirement, the term of the warranty and the nature of the Group’s undertaking to perform its
obligations.
24. Government grants
Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching conditions will
be complied with. The grant is measured as the amount received or receivable where it takes the form of a cash asset, or at f air value
where it is not a cash asset. Where the fair value cannot be reliably obtained, it should be measured at the nominal value.
In accordance with the stipulations of the government instruments, government grants applied towards acquisition or the forma tion of
long-term assets in other manners are asset-related government grants; the instruments unspecifically refer to the exercise of
judgement based on the basic conditions for receiving the asset-related grant applied towards or the formation of long-term assets in
other manners. All other grants are recognised as income-related government grants.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Government grants relating to income and applied to make up for related costs or losses in future periods shall be recognised as
deferred income, and shall be recognised in profit or loss of the per iod for which related costs or loss are recognised. Government
grants specifically applied for the reimbursement of incurred related costs and expenses shall be directly recognised in prof it or loss.
Government grants relating to assets shall be recognised as deferred income and credited to profit or loss over the useful life of the
asset concerned by reasonable and systematic instalments (provided that government grants measured at nominal value shall be
directly recognised in profit or loss). Where the asset concerned is disposed of, transferred, retired or damaged prior to the end of its
useful life, the balance of the deferred income yet to be allocated shall be transferred to “asset disposal” under current pr ofit or loss.
25. Deferred tax assets and liabilities
Income taxes include current and deferred tax. Income taxes are recognised in current profit or loss as income tax expenses or income
tax benefit, except for the adjustment made for goodwill in a business combination and income tax from transactions or items that
directly related to equity.
For the current period’s deferred tax assets and liabilities arising in current and prior periods, the Group measures them at the amount
expected to be paid or recovered according to the relevant taxation regulations.
The Group recognises deferred tax assets and liabilities based on temporary differences using the balance sheet liability method.
Temporary differences are differences between the carrying amount of assets or liabilities in the balance sheet and their tax base on
the balance sheet date. Temporary differences also include the differences between the carrying values and tax bases of items not
recognised as assets or liabilities where the tax base can be calculated according to the relevant tax regulations.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
（1） where the taxable temporary difference arises from goodwill or the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.
（2） in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carryforward of unused tax credits and unused tax losses,
to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, a nd the
carryforward of unused tax credits and unused tax losses can be utilised except:
（1） where the deductible temporary difference arises from transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss.
（2） deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures are
recognised when all following conditions are met: it is probable that the temporary differences will reverse in the foreseeable future,
it is probable that taxable profit against the deductible temporary differences will be available.
As at balance sheet date, deferred tax assets and liabilities are measured in accordance with relevant tax laws at the tax ra tes that are
expected to apply to the period when the asset is realised or the liability is settled, and reflects the tax consequences that would
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follow the manner in which the Group expects, at the balance sheet date, to recover the assets or settle the carrying amount of its
assets and liabilities.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilise d. Unrecognised
deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become pr obable that
sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered.
Deferred tax assets and liabilities are offset and presented as a net amount if all of the following conditions are met: the Group has
the legal right to set off the current income tax assets and liabilities and the deferred tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable entities, provided that the taxa ble entity
concerned intends either to settle current income tax liabilities and assets on a net basis, or to realise the assets and settle the
liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expe cted to be
settled or recovered.
26. Other principal accounting policies and accounting estimates
Share repurchase
The consideration and transaction costs paid to repurchase equity instruments are charged against owner’s equity. Except for
share-based payments, the issue (including refinancing), repurchase, disposal or retirement of the Company’s own equity instruments
are accounted for as changes in equity.
Profit distribution
The Company’s cash dividends are recognized as liabilities upon the approval by the general meeting.
Expenses for safety production
The expenses for safety production set side as stipulated shall be included in the cost of relevant products or current profits and
losses, and included in the special reserve at the same time. When such expenses are used, accounting treatment will be performed
according to whether fixed assets are formed. If identified as expense expenditures, the special reserve will be written down directly;
if fixed assets are formed, the expenses incurred will be collected, fixed assets will be recognized when they reach a predetermined
usable state, and the equivalent amount of special reserve will be written down and the equivalent accumulated depreciation will be
recognized.
Fair value measurement
At each balance sheet date, the Group measures the fair value of derivative financial instruments. Fair value mea ns the price
receivable from the disposal of an asset or required to be paid for the transfer of a liability in an orderly transaction inc urred by
market participants on the measurement date. The Group measures assets or liabilities at fair value with the assumption that the
orderly transaction of asset disposal or the transfer of liabilities takes place in the major market for the relevant assets or liabilities.
Where there is no major market, the Group assumes such transaction takes place in the most favo urable market for the relevant assets
or liabilities. The major market (or most favourable market) is a trading market which the Group has access to on the measure ment
date. The Group adopts assumptions used by market participants when they price the asset or liability with the aim of maximising its
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economic benefits.
27. Changes to principal accounting policies and accounting estimates
(1) Changes to principal accounting policies
√ Applicable □ Not applicable
In 2018, the Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No. 21-Leases" (referred to as
the "New Lease Standard"). The Group began accounting treatment in accordance with the newly revised standards on January 1,
2021. According to the convergence regulations, the comparable period information will not be adjusted, and only the amount of
relevant items in the financial statements at the beginning of the year when the new standard was implemented for the first t ime will
be adjusted. Under the New Lease Standard, with the exception of short-term leases and low-value asset leases, lessees will no longer
distinguish between financial leases and operating leases. All leases will use the same accounting treatment, and right-of-use assets
and lease liabilities must be recognized.
This change to accounting policies increased the company's total assets of 93.51 million and total liabilities of 93.51 million at the
beginning of the year, which had no significant impact on the income statement.
(2) The adjustments to relevant items in the financial statements at the beginning of 2021 when the New
Lease Standard was implemented for the first time
Applicable
Whether to adjust the items in the balance sheets at the beginning of the year.
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB yuan
Item 31 December 2020 1 January 2021 Adjustments
Current assets:
Cash and bank balances 885,711,053.88 885,711,053.88
Settlement provisions
Dismantling funds
Financial assets held for trading 1,636,296,430.31 1,636,296,430.31
Derivative financial assets
Notes receivable 12,744,582.88 12,744,582.88
Accounts receivable 469,635,423.58 469,635,423.58
Receivable financing 56,737,978.04 56,737,978.04
Prepayments 29,109,416.21 29,109,416.21
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Premium receivable
Receivable reinsurance account
Provision for reinsurance contract receivable
Other receivables 79,103,472.64 79,103,472.64
Including: Interest receivable 587,074.81 587,074.81
Dividend receivable
Buy back resale financial assets
Inventories 734,120,595.26 734,120,595.26
Contract assets 29,504,693.97 29,504,693.97
Assets held for sale
Current portion of non-current assets 2,556,000.00 2,556,000.00
Other current assets 22,271,217.65 22,271,217.65
Total current assets 3,957,790,864.42 3,957,790,864.42
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 1,475,000.00 1,475,000.00
Long-term equity investment 72,671,204.73 72,671,204.73
Investment in other equity instruments
Other non-current financial assets 5,948,588.15 5,948,588.15
Real estate investment
Fixed assets 571,413,480.14 571,413,480.14
Construction in progress 9,062,038.52 9,062,038.52
Productive biological assets
Oil and gas asset
Right-of-use assets 93,513,747.81 93,513,747.81
Intangible assets 332,387,182.69 332,387,182.69
Development expenditure
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Goodwill 324,904,239.97 324,904,239.97
Long-term prepaid expenses 12,096,981.78 12,096,981.78
Deferred tax assets 98,947,059.25 98,947,059.25
Other non-current assets 936,540,047.40 936,540,047.40
Total non-current assets 2,365,445,822.63 2,458,959,570.44 93,513,747.81
Total assets 6,323,236,687.05 6,416,750,434.86 93,513,747.81
Current liabilities:
Short-term borrowings 39,533,281.84 39,533,281.84
Borrowing from the Central Bank
Borrowed funds
Financial liabilities held for trading 41,408,109.80 41,408,109.80
Derivative financial liabilities
Notes payable 104,855,187.97 104,855,187.97
Accounts payable 503,042,561.05 503,042,561.05
Advance receivables
Contract liabilities 362,792,713.35 362,792,713.35
Selling back financial assets
Deposits and Interbank deposit
Agent trading securities
Agent underwriting securities
Employee benefits payable 92,623,562.93 92,623,562.93
Tax payable 36,369,777.05 36,369,777.05
Other payables 81,743,851.64 81,743,851.64
Including: Interest payable
Dividend payable
Fees and commissions
Reinsurance accounts payable
Liabilities held for sale
Current portion of non-current liabilities 226,597,528.74 226,597,528.74
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Other current liabilities 20,532,046.04 20,532,046.04
Total current liabilities 1,509,498,620.41 1,509,498,620.41
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 353,412,388.29 353,412,388.29
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities 93,513,747.81 93,513,747.81
Long-term payables
Long-term employee benefits payable 18,451,652.74 18,451,652.74
Provisions 105,450,257.63 105,450,257.63
Deferred income 16,861,488.27 16,861,488.27
Deferred tax liabilities 19,296,386.16 19,296,386.16
Other non-current liabilities 68,737,415.25 68,737,415.25
Total non-current liabilities 582,209,588.34 675,723,336.15 93,513,747.81
Total Liabilities 2,091,708,208.75 2,185,221,956.56 93,513,747.81
Equity:
Share capital 1,545,126,957.00 1,545,126,957.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus 4,002,393,061.81 4,002,393,061.81
Less: Treasury stock 579,403,185.12 579,403,185.12
Other comprehensive income 20,026,089.70 20,026,089.70
Special reserve 10,057,438.97 10,057,438.97
Surplus reserves 51,830,974.45 51,830,974.45
General risk preparation
Retained earnings -891,492,837.06 -891,492,837.06
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Total equity attributable to owners of the parent 4,158,538,499.75 4,158,538,499.75
Non-controlling interests 72,989,978.55 72,989,978.55
Total equity 4,231,528,478.30 4,231,528,478.30
Total liabilities and equity 6,323,236,687.05 6,416,750,434.86 93,513,747.81
Parent Company Balance Sheet
Unit: RMB yuan
Item 31 December 2020 1 January 2021 Adjustments
Current assets:
Cash and bank balances 134,020,813.88 134,020,813.88
Financial assets held for trading 1,539,762,030.97 1,539,762,030.97
Derivative financial assets
Notes receivable
Accounts receivable 153,517,438.90 153,517,438.90
Receivable financing 53,245,689.47 53,245,689.47
Prepayments 2,641,946.74 2,641,946.74
Other receivables 68,388,543.22 68,388,543.22
Including: Interest receivable
Dividend receivable 40,000,000.00 40,000,000.00
Inventories 123,156,907.36 123,156,907.36
Contract assets 4,470,173.25 4,470,173.25
Assets held for sale
Current portion of non-current assets 2,556,000.00 2,556,000.00
Other current assets 18,942.75 18,942.75
Total current assets 2,081,778,486.54 2,081,778,486.54
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 1,475,000.00 1,475,000.00
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Long-term equity investment 464,794,856.81 464,794,856.81
Investment in other equity instruments
Other non-current financial assets
Real estate investment
Fixed assets 329,230,669.84 329,230,669.84
Construction in progress 351,261.61 351,261.61
Productive biological assets
Oil and gas asset
Right-of-use assets 22,526,467.81 22,526,467.81
Intangible assets 58,215,631.98 58,215,631.98
Development expenditure
Goodwill
Long-term prepaid expenses 3,475,004.06 3,475,004.06
Deferred tax assets 32,570,759.90 32,570,759.90
Other non-current assets 935,660,189.00 935,660,189.00
Total non-current assets 1,825,773,373.20 1,848,299,841.01 22,526,467.81
Total assets 3,907,551,859.74 3,930,078,327.55 22,526,467.81
Current liabilities:
Short-term loan
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 55,312,772.43 55,312,772.43
Accounts payable 53,044,344.90 53,044,344.90
Advance receivables
Contract liabilities 22,116,154.74 22,116,154.74
Employee benefits payable 16,961,090.03 16,961,090.03
Tax payable 5,181,895.95 5,181,895.95
Other payables 50,884,934.80 50,884,934.80
Including: Interest payable
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Dividend payable
Liabilities held for sale
Current portion of non-current liabilities
Other current liabilities 2,253,619.05 2,253,619.05
Total current liabilities 205,754,811.90 205,754,811.90
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities 22,526,467.81 22,526,467.81
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 13,306,971.66 13,306,971.66
Deferred tax liabilities 3,894,304.65 3,894,304.65
Other non-current liabilities
Total non-current liabilities 17,201,276.31 39,727,744.12 22,526,467.81
Total Liabilities 222,956,088.21 245,482,556.02 22,526,467.81
Equity:
Share capital 1,545,126,957.00 1,545,126,957.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus 3,846,323,477.68 3,846,323,477.68
Less: Treasury stock 579,403,185.12 579,403,185.12
Other comprehensive income
Special reserve 3,835,986.08 3,835,986.08
Surplus reserves 51,830,974.45 51,830,974.45
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Retained earnings -1,183,118,438.56
Total equity 3,684,595,771.53 3,684,595,771.53
Total liabilities and equity 3,907,551,859.74 3,930,078,327.55 22,526,467.81
(3) Retrospective adjustments to the previous comparative data when the New Lease Standard was
implemented for the first time
□Applicable √Not applicable
28. Others
VI Taxation
1. Principal tax items and tax rates
Tax items Tax basis Tax rates
The output tax of the taxable income is
calculated at the rate of 13% and 6% and
VAT is levied according to the difference
Value-added tax (VAT) 13%、6%
after deducting the input tax which is
allowed to be deducted in the current
period.
Levied at 7% of the turnover tax actually
City maintenance and construction tax 7%
paid.
Corporate income tax shall be levied at
25% of the taxable income. Except for the
Company and subsidiaries enjoying tax
concessions, other domestic subsidiaries
Corporate income tax shall calculate and pay the business income See the table below
taxes at 25% of the taxable income;
subsidiaries registered abroad shall apply
the corporate income tax rate as required
by the local tax law.
Ad valorem tax: levied at 1.2% of the
remaining value after deducting 30% from
Property tax the original value of the property; Tax 1.2%、12%
levied from rent: levied at 12% of the
rental income.
Land area registered in land use right
Land use tax RMB 3/square meter
certificate
Taxpayers with different corporate income tax rates within the Group are as follows:
Company name Income tax rate
117
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Dongfang Precision 15%
Dongfang Precision (HK) 16.5%
Dongfang Precision (Netherland) 20%
Fosber Group 24%
Fosber America 21%
Fosber Tianjin 25%
Shunyi Investment 25%
Italy EDF 24%
Tirua 28%
Tirua Group 28%
Tratatamientos Industriales Tirua S.A.U. 28%
Tirua France SARL 15%
Tirua UK Ltd 19%
Tirua America 21%
Parsun Power 15%
Fosber Asia 15%
2. Tax concessions
In November 2017, the Company passed the high-tech enterprise review by the Department of Science and Technology of
Guangdong Province, Department of Finance of Guangdong Province, Guangdong Provincial Tax Service of State Taxation
Administration and Guangdong Provincial Local Taxation Bureau and obtained a High-tech Enterprise Certificate (certificate no.:
GR201744002995) jointly issued by the above authorities, with a validity of three years. Corporate income tax was levied at a
reduced rate of 15% during the validity period. In 2020, the Company went through the procedures for high-tech enterprise
re-identification and passed the no-objection identification (certificate no.: GR202044007667) on 9 December 2020, so the
preferential tax rate of 15% was applicable to the Company's business income tax in 2021.
Suzhou Parsun Power Machine Co., Ltd. ("Parsun Power"), a subsidiary of t he Company, passed the high-tech enterprise review by
the Department of Science and Technology of Jiangsu Province, Department of Finance of Jiangsu Province and Jiangsu Provincia l
Tax Service of State Taxation Administration on 7 November 2019 and obtained a High-tech Enterprise Certificate (certificate no.:
GR201932000339) jointly issued by the above authorities, with a validity of three years, during which the subsidiary paid the
corporate income tax at a reduced rate of 15%.
Guangdong Fosber Intelligent Equipment Co., Ltd. ("Fosber Asia"), a subsidiary of the Company, passed the high-tech enterprise
review by the Department of Science and Technology of Guangdong Province, Department of Finance of Guangdong Province and
Guangdong Provincial Tax Service of State Taxation Administration on 28 November 2018 and obtained a High-tech Enterprise
Certificate (certificate no.: GR201844003599) jointly issued by the above authorities, with a validity of three years, during which the
subsidiary paid the corporate income tax at a reduced rate of 15%.
118
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
VII. Notes to the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB yuan
Item Closing balance Opening balance
Cash on hand 606,577.65 217,540.96
Cash at banks 1,542,592,373.60 860,383,695.82
Other cash balances 223,359,245.39 25,109,817.10
Total 1,766,558,196.64 885,711,053.88
Of which: Total amount overseas 516,280,064.79 514,387,073.67
Total restricted amount as
223,359,245.39 25,109,817.10
collateral, pledge or frozen
2. Financial assets held for trading
Unit: RMB yuan
Item Closing balance Opening balance
Financial assets at fair value through profit
1,022,938,402.56 1,636,296,430.31
or loss
Of which:
Investments in trust products 117,040,263.44 504,767,340.61
Funds management plans 536,140,816.75 619,890,000.00
Derivative financial assets 278,071.28 831,021.35
Investments in bank’s wealth management
283,737,251.09 510,808,068.35
products
Other financial instruments 84,816,000.00
Stocks on the secondary market 926,000.00
Designated financial assets at fair value
0.00 0.00
through profit or loss
Of which:
Total 1,022,938,402.56 1,636,296,430.31
3. Notes receivable
(1) Notes receivable by type
Unit: RMB yuan
119
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Item Closing balance Opening balance
Bank acceptance notes 2,501,310.00 12,744,582.88
Total 2,501,310.00 12,744,582.88
Unit: RMB yuan
Closing balance Opening balance
Gross amount Allowance Gross amount Allowance
Type Allowanc Allowanc
Carrying Carrying
Percenta e Percentag e
Amount Amount amount Amount Amount amount
ge percentag e percentag
e e
Notes receivable for
which the allowances
0.00 0.00 0.00 0.00 0.00 0.00
are established
individually
Of which:
Notes receivable for
which the allowances
0.00 0.00 0.00 0.00 0.00 0.00
are established by
group
Of which:
Allowances established individually: Not applicable
Allowances established by group: Not applicable
Grouping basis: Not applicable
Where allowances for doubtful notes receivable are established using the general model of expected credit loss, please disclose
allowance information as other receivables.
□ Applicable √ Not applicable
(2) Notes receivable that were endorsed or discounted but undue on the balance sheet date at the
period-end
Unit: RMB yuan
Item Closing derecognized amount Closing un-derecognized amount
Bank acceptance notes 2,501,310.00
Total 2,501,310.00
4. Accounts receivable
(1) Accounts receivable by type
Unit: RMB yuan
120
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Closing balance Opening balance
Gross amount Allowance Gross amount Allowance
Type Allowanc Allowanc
Carrying Carrying
Percenta e Percentag e
Amount Amount amount Amount Amount amount
ge percentag e percentag
e e
Accounts receivable
for which the
6,750,97 6,750,97 6,914,949 6,914,949
allowances are 1.35% 100.00% 0.00 1.40% 100.00% 0.00
4.35 4.35 .57 .57
established
individually
Of which:
Accounts receivable
for which the
6,750,97 6,750,97 6,914,949 6,914,949
allowances are 1.35% 100.00% 0.00 1.40% 100.00% 0.00
4.35 4.35 .57 .57
established
individually
Accounts receivable
for which the 494,017, 15,616,5 478,400,4 486,512,8 16,877,38 469,635,42
98.65% 3.16% 98.60% 3.47%
allowances are 033.83 80.02 53.81 04.93 1.35 3.58
established by group
Of which:
Accounts receivable
for which the
allowances are 494,017, 15,616,5 478,400,4 486,512,8 16,877,38 469,635,42
98.65% 3.16% 98.60% 3.47%
established by group 033.83 80.02 53.81 04.93 1.35 3.58
with similar credit
risk characteristics
500,768, 22,367,5 478,400,4 493,427,7 23,792,33 469,635,42
Total 100.00% 100.00%
008.18 54.37 53.81 54.50 0.92 3.58
Accounts receivable for which the allowances are established individually: Accounts receivable for which the allowances are
established individually
Unit: RMB yuan
Closing balance
Entity
Gross amount Allowance Allowance percentage Reason for allowance
Customer’s inability to
Customer 1 981,949.40 981,949.40 100.00% settle the amount due
Customer’s inability to
Customer 2 641,600.00 641,600.00 100.00% settle the amount due
Customer’s inability to
Customer 3 608,800.00 608,800.00 100.00% settle the amount due
121
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Customer’s inability to
Customer 4 515,595.00 515,595.00 100.00% settle the amount due
Customer’s inability to
Customer 5 283,000.00 283,000.00 100.00% settle the amount due
Customer’s inability to
Other companies 3,720,029.95 3,720,029.95 100.00% settle the amount due
Total 6,750,974.35 6,750,974.35 -- --
Accounts receivable for which the allowances are established by group: Accounts receivable for which the allowances are
established by group with similar credit risk characteristics
Unit: RMB yuan
Closing balance
Item
Gross amount Allowance Allowance percentage
Within 1 year (inclusive) 423,881,377.57 1,830,049.30 0.43%
1-2 years (including 2 years) 42,343,812.82 2,670,785.05 6.31%
2-3 years (including 3 years) 18,497,379.75 1,860,558.19 10.06%
3-4 years (including 4 years) 1,147,437.47 1,117,248.04 97.37%
4-5 years (including 5 years) 1,490,067.25 1,480,980.47 99.39%
Over 5 years 6,656,958.97 6,656,958.97 100.00%
Total 494,017,033.83 15,616,580.02 --
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss, please dis close
allowance information as other receivables.
□ Applicable √ Not applicable
By aging:
Unit: RMB yuan
Aging Closing balance
Within 1 year (inclusive) 391,887,465.95
1-2 years 71,252,280.31
2-3 years 21,517,256.56
Over 3 years 16,111,005.36
3-4 years 5,911,486.35
4-5 years 2,009,160.04
Over 5 years 8,190,358.97
Total 500,768,008.18
(2) Allowances established or reversed in the current period
Allowances in the current period:
Unit: RMB yuan
122
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Change in the current period
Type Opening balance Closing balance
Established Reversed Written off Others
Accounts
receivable for
which the
6,914,949.57 0.00 0.00 0.00 -163,975.22 6,750,974.35
allowances are
established
individually
Accounts
receivable for
which the
16,877,381.35 1,521,877.68 1,751,733.40 551,743.68 -479,201.93 15,616,580.02
allowances are
established by
group
Total 23,792,330.92 1,521,877.68 1,751,733.40 551,743.68 -643,177.15 22,367,554.37
(3) Accounts receivable written off in the current period
Unit: RMB yuan
Item Amount written off
Accounts receivable written off 551,743.68
(4) Top five entities with respect to accounts receivable
Unit: RMB yuan
Closing balance of accounts As a % of the closing balance of
Entity Closing balance of allowances
receivable total accounts receivable
Customer 1 16,334,712.24 3.26% 241,222.83
Customer 2 14,848,982.25 2.97% 276,191.07
Customer 3 11,815,226.64 2.36% 174,481.34
Customer 4 11,394,217.03 2.28% 168,264.08
Customer 5 9,564,696.67 1.91% 141,246.64
Total 63,957,834.83 12.78%
5. Receivables financing
Unit: RMB yuan
Item Closing balance Opening balance
Notes receivable 89,380,635.10 56,737,978.04
123
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Total 89,380,635.10 56,737,978.04
Changes in receivables financing and in their fair value in the current period:
□ Applicable √ Not applicable
Where allowances for doubtful receivables financing are established using the general model of expected credit loss, please disclose
allowance information as other receivables:
□ Applicable √ Not applicable
6. Prepayments
(1) Prepayments by aging
Unit: RMB yuan
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 43,754,594.54 97.20% 28,618,261.25 98.31%
1-2 years 1,137,286.32 2.53% 374,977.19 1.29%
2-3 years 20,544.64 0.05% 34,633.52 0.12%
Over 3 years 102,155.69 0.22% 81,544.25 0.28%
Total 45,014,581.19 -- 29,109,416.21 --
(2) Top five entities with respect to prepayments
The closing balance of total prepayments to the top five entities amounted to RMB20,884,644.88, accounting for 46.40% of the
closing balance of the total prepayments.
7. Other receivables
Unit: RMB yuan
Item Closing balance Opening balance
Interest receivable 1,562,811.76 587,074.81
Other receivables 170,604,759.87 78,516,397.83
Total 172,167,571.63 79,103,472.64
(1) Interest receivable
1) Interest receivable by type
Unit: RMB yuan
Item Closing balance Opening balance
Other interest 1,562,811.76 587,074.81
124
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Total 1,562,811.76 587,074.81
(2) Other receivables
1) Other receivables by nature
Unit: RMB yuan
Nature Closing gross amount Opening gross amount
Amount for transfer of equity investments 140,352,550.00 42,131,250.00
Prepaid service charges 8,633,043.92 11,152,973.97
Security deposits 4,980,477.44 6,202,941.33
Performance compensation 1,305,713.60 3,864,914.60
Export tax refunds 6,426,072.80 3,079,666.37
Employee loans and petty cash 4,374,693.19 2,579,209.29
Others 7,804,862.94 12,867,216.40
Total 173,877,413.89 81,878,171.96
2) Allowances
Unit: RMB yuan
Stage 1 Stage 2 Stage 3
Lifetime expected credit Lifetime expected credit
Allowances 12-month expected Total
loss (without credit loss (with credit
credit loss
impairment) impairment)
Balance as at 1 January
2,861,774.13 500,000.00 3,361,774.13
2021
Balance as at 1 January
2021 in the current —— —— —— ——
period
Other changes -89,120.11 -89,120.11
Balance as at 30 June
2,772,654.02 500,000.00 3,272,654.02
2021
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
By aging:
Unit: RMB yuan
Aging Closing balance
Within 1 year (inclusive) 124,167,127.16
125
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
1-2 years 4,281,928.72
2-3 years 42,469,709.96
Over 3 years 2,958,648.05
3-4 years 1,999,487.98
4-5 years 325,938.15
Over 5 years 633,221.92
Total 173,877,413.89
3) Top five entities with respect to other receivables
Unit: RMB yuan
As a % of the Closing balance of
Nature of other closing balance of allowances for
Entity Closing balance Aging
receivable total other doubtful other
receivables receivables
Amount for transfer
Entity 1 of equity 40,352,550.00 2-3 years 23.21% 2,021,826.93
investments
Amount for transfer
Entity 2 of equity 30,000,000.00 Within 1 year 17.25%
investments
Amount for transfer
Entity 3 of equity 30,000,000.00 Within 1 year 17.25%
investments
Amount for transfer
Entity 4 of equity 20,000,000.00 Within 1 year 11.50%
investments
Amount for transfer
Entity 5 of equity 20,000,000.00 Within 1 year 11.50%
investments
Total -- 140,352,550.00 -- 80.72% 2,021,826.93
8. Inventories
Is the Company subject to the disclosure requirements for the real estate industry?
No.
(1) Inventories by type
Unit: RMB yuan
126
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Closing balance Opening balance
Inventory Inventory
valuation valuation
allowances or allowances or
Item impairment impairment
Gross amount Carrying amount Gross amount Carrying amount
allowances for allowances for
contract contract
performance performance
costs costs
Raw materials 372,327,102.32 7,858,175.27 364,468,927.05 313,339,147.74 8,477,773.27 304,861,374.47
Work-in-progress 452,435,151.75 27,553,580.09 424,881,571.66 347,787,856.58 27,512,393.21 320,275,463.37
Finished goods 77,579,093.99 575,827.54 77,003,266.45 80,477,465.24 2,209,825.73 78,267,639.51
Product deliveries 102,582,445.99 102,582,445.99 15,786,304.74 15,786,304.74
Semi-finished
goods 13,248,101.07 114,428.27 13,133,672.80 14,676,986.94 114,428.27 14,562,558.67
Materials
consigned for 711,738.73 711,738.73 367,254.50 367,254.50
processing
Total 1,018,883,633.85 36,102,011.17 982,781,622.68 772,435,015.74 38,314,420.48 734,120,595.26
(2) Inventory valuation allowances and impairment allowances for contract performance costs
Unit: RMB yuan
Increase in the current period Decrease in the current period
Item Opening balance Reversed or Closing balance
Established Others Others
written off
Raw materials 8,477,773.27 864,652.07 1,191,127.55 293,122.52 7,858,175.27
Work-in-progress 27,512,393.21 185,539.03 144,352.15 27,553,580.09
Finished goods 2,209,825.73 1,633,998.19 575,827.54
Product deliveries
Semi-finished 114,428.27 114,428.27
goods
Materials
consigned for
processing
Total 38,314,420.48 1,050,191.10 2,825,125.74 437,474.67 36,102,011.17
9. Contract assets
Unit: RMB yuan
Closing balance Opening balance
Item
Gross amount Impairment Carrying Gross amount Impairment Carrying amount
127
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
allowance amount allowance
Contract assets 11,816,199.59 780,847.59 11,035,352.00 30,566,218.02 1,061,524.05 29,504,693.97
Total 11,816,199.59 780,847.59 11,035,352.00 30,566,218.02 1,061,524.05 29,504,693.97
Significant changes in the carrying amounts of contract assets in the current period and reasons: Not applicable
Where impairment allowances for contract assets are established using the general model of expected credit loss, please disclose
allowance information as other receivables:
□ Applicable √ Not applicable
Impairment allowances for contract assets in the current period:
Unit: RMB yuan
Established in the current Reversed in the current Written off/charged off in
Item Reason
period period the current period
Impairment allowances
257,325.86
for contract assets
Total 257,325.86 --
10. Current portion of non-current assets
Unit: RMB yuan
Item Closing balance Opening balance
Current portion of long-term receivables 4,281,000.00 2,556,000.00
Current portion of large-amount deposit
100,315,833.33
certificates
Total 104,596,833.33 2,556,000.00
11. Other current assets
Unit: RMB yuan
Item Closing balance Opening balance
Input value-added tax (VAT) to be
632,176.18 1,041,284.86
deducted
Overpaid VAT 13,242,562.02 13,120,049.59
Tax repayments 10,459,424.98 4,547,579.26
Prepaid expenses 49,465.29 23,570.22
Others 2,116,034.83 3,538,733.72
Total 26,499,663.30 22,271,217.65
128
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
12. Long-term receivables
(1) Particulars about long-term receivables
Unit: RMB yuan
Closing balance Opening balance
Range of
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount discount rates
allowance amount allowance amount
Amounts
receivable by
4,103,750.00 4,103,750.00 1,475,000.00 1,475,000.00
installment for
selling goods
Total 4,103,750.00 4,103,750.00 1,475,000.00 1,475,000.00 --
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
13. Long-term equity investments
Unit: RMB yuan
Change in the current period
Closing
Opening Return on Declare Closing
Addition Adjustment Other balance of
Investe balance Reduced investment d cash Impairme balance
al to other equity impairme
e (carrying investme under the dividend nt Others (carrying
investme comprehensi change nt
amount) nt equity s or allowance amount)
nt ve income s allowance
method profit
1. Joint ventures
2. Associates
Jaten 70,900,088. 1,249,209. 72,149,298.
Robot 92 43 35
Tallere 1,771,115.8 -74,775.9 1,696,339.8
s Tapre 1 3 8
Subtot 72,671,204. 1,249,209. -74,775.9 73,845,638.
al 73 43 3 23
72,671,204. 1,249,209. -74,775.9 73,845,638.
Total
73 43 3 23
14. Other non-current financial assets
Unit: RMB yuan
Item Closing balance Opening balance
129
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Financial assets at fair value through profit
6,050,655.19 5,948,588.15
or loss
Total 6,050,655.19 5,948,588.15
15. Fixed assets
Unit: RMB yuan
Item Closing balance Opening balance
Fixed assets 556,554,822.37 571,413,480.14
Total 556,554,822.37 571,413,480.14
(1) Particulars about fixed assets
Unit: RMB yuan
Office
Buildings and Transportation equipment/electronic
Item Machinery Total
constructions equipment equipment/other
equipment
I. Gross amount
1. Opening
589,751,776.97 450,190,483.35 29,625,946.16 54,535,783.13 1,124,103,989.61
balance
2. Increase in the
790,481.81 7,043,651.63 4,174,604.37 3,943,343.59 15,952,081.40
current period
(1) Purchases 790,481.81 3,139,663.26 4,174,604.37 3,943,343.59 12,048,093.03
(2) Transfers
from construction in 3,903,988.37 3,903,988.37
progress
(3) Increase in
business
combination
(4) Effect of
exchange rate
movements
3. Decrease in the
7,928,688.73 13,597,362.89 3,441,294.85 409,719.72 25,377,066.19
current period
(1) Disposal or
175,269.23 3,281,163.00 47,657.86 3,504,090.09
retirement
(2) Transferred
out in disposal of
130
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
subsidiary
(3) Effect of
exchange rate 7,928,688.73 13,422,093.66 160,131.85 362,061.86 21,872,976.10
movements
4. Closing balance 582,613,570.05 443,636,772.09 30,359,255.68 58,069,407.00 1,114,679,004.82
II. Accumulated
depreciation
1. Opening
170,382,986.59 335,115,748.64 19,447,337.09 27,744,437.15 552,690,509.47
balance
2. Increase in the
8,702,978.06 11,040,973.56 2,442,391.58 3,357,357.58 25,543,700.78
current period
(1) Provision 8,702,978.06 11,040,973.56 2,442,391.58 3,357,357.58 25,543,700.78
(2) Increase in
business
combination
(3) Effect of
exchange rate
movements
3. Decrease in the
4,411,040.46 11,924,840.98 3,365,333.03 408,813.33 20,110,027.80
current period
(1) Disposal or
121,470.07 3,164,618.95 42,892.07 3,328,981.09
retirement
(2) Transferred
out in disposal of
subsidiary
(3) Effect of
exchange rate 4,411,040.46 11,803,370.91 200,714.08 365,921.26 16,781,046.71
movements
4. Closing balance 174,674,924.19 334,231,881.22 18,524,395.64 30,692,981.40 558,124,182.45
III. Impairment
allowances
1. Opening
balance
2.Increase in the
current period
(1) Established
3. Decrease in the
current period
131
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(1) Disposal or
retirement
4. Closing balance
IV. Carrying amount
1. Closing
407,938,645.86 109,404,890.87 11,834,860.04 27,376,425.60 556,554,822.37
carrying amount
2. Opening
419,368,790.38 115,074,734.71 10,178,609.07 26,791,345.98 571,413,480.14
carrying amount
16. Construction in progress
Unit: RMB yuan
Item Closing balance Opening balance
Construction in progress 9,929,394.59 9,062,038.52
Total 9,929,394.59 9,062,038.52
(1) Particulars about construction in progress
Unit: RMB yuan
Closing balance Opening balance
Item Impairment Impairment
Gross amount Carrying amount Gross amount Carrying amount
allowance allowance
Plants and
buildings 1,306,188.24 1,306,188.24 384,832.84 384,832.84
Equipment
installation 7,375,954.22 7,375,954.22 8,431,327.70 8,431,327.70
Software
installation 1,247,252.13 1,247,252.13 245,877.98 245,877.98
Total 9,929,394.59 9,929,394.59 9,062,038.52 9,062,038.52
(2) Changes in substantial construction in progress in the current period
Unit: RMB yuan
Transferr Cumulati Of
Interest
ed to Other ve Cumulati which:
Increase capitaliz
fixed decrease project ve Capitaliz
Opening in the Closing Project ation rate Funding
Project Budget assets in s in the investme capitaliz ed
balance current balance progress for the source
the current nt as a % ed interest
period current
current period of the interest in the
period
period budget current
132
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
period
Equipme
nt
installati 12,021,4 8,426,60 4,064,91 3,903,98 319,315. 8,268,21
69.00% Other
on of 50.00 2.70 8.87 8.37 65 7.55
Fosber
Group
635,435. 1,029,85 1,661,17
Others 4,111.96 Other
82 3.18 7.04
12,021,4 9,062,03 5,094,77 3,903,98 323,427. 9,929,39
Total -- -- --
50.00 8.52 2.05 8.37 61 4.59
(3) Impairment allowances for construction in progress in the current period
Not applicable.
(4) Engineering materials
Not applicable.
17. Right-of-use assets
Unit: RMB yuan
Buildings and Transportation
Item Total
constructions equipment
I. Gross amount
1. Opening balance 86,415,019.81 7,098,728.00 93,513,747.81
2. Increase in the
current period
3. Decrease in the
938,574.00 104,286.00 1,042,860.00
current period
Effect of exchange rate
938,574.00 104,286.00 1,042,860.00
movements
4. Closing balance 85,476,445.81 6,994,442.00 92,470,887.81
II. Accumulated
depreciation
1. Opening balance
2. Increase in the
8,707,766.91 673,066.05 9,380,832.96
current period
(1) Provision 8,707,766.91 673,066.05 9,380,832.96
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
3. Decrease in the
88,990.91 9,887.88 98,878.79
current period
Effect of exchange rate
88,990.91 9,887.88 98,878.79
movements
4. Closing balance 8,618,776.00 663,178.17 9,281,954.17
III. Impairment
allowances
1. Opening balance
2. Increase in the
current period
(1) Established
3. Decrease in the
current period
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Closing carrying
76,857,669.81 6,331,263.83 83,188,933.64
amount
2. Opening carrying
86,415,019.81 7,098,728.00 93,513,747.81
amount
18. Intangible assets
(1) Particulars about intangible assets
Unit: RMB yuan
Non-patented Trademarks and
Item Land use rights Patent rights Land ownership Total
technologies software
I. Gross amount
1. Opening
114,739,730.08 94,087,773.87 17,169,515.99 188,146,579.45 414,143,599.39
balance
2. Increase
in the current 4,956,581.52 4,049,966.66 9,006,548.18
period
(1)
4,956,581.52 4,049,966.66 9,006,548.18
Purchases
(2)
Internal R&D
134
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(3)
Increase in
business
combination
(4) Effect
of exchange rate
movements
3. Decrease in
4,030,714.30 724,863.80 7,955,425.80 12,711,003.90
the current period
(1)
Disposal
(2)
Transferred out in
disposal of
subsidiary
(3) Effect
of exchange rate 4,030,714.30 724,863.80 7,955,425.79 12,711,003.89
movements
4. Closing
114,739,730.08 95,013,641.09 16,444,652.19 184,241,120.31 410,439,143.67
balance
II. Accumulated
amortization
1. Opening
19,772,711.70 44,892,936.80 17,090,768.20 81,756,416.70
balance
2. Increase
in the current 1,279,370.65 8,073,531.73 4,571,368.47 13,924,270.85
period
(1)
1,279,370.65 8,073,531.73 4,571,368.47 13,924,270.85
Provision
(2)
Increase in
business
combination
(3) Effect
of exchange rate
movements
3. Decrease
in the current 2,343,299.30 713,549.05 3,056,848.35
period
(1)
135
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Disposal
(2)
Transferred out in
disposal of
subsidiary
(3) Effect
of exchange rate 2,343,299.30 713,549.05 3,056,848.35
movements
4. Closing
21,052,082.35 50,623,169.23 20,948,587.62 92,623,839.20
balance
III. Impairment
allowances
1. Opening
balance
2. Increase
in the current
period
(1)
Established
(2) Effect
of exchange rate
movements
3. Decrease
in the current
period
(1) Disposal
(2) Effect of
exchange rate
movements
4. Closing
balance
IV. Carrying
amount
1. Closing
93,687,647.73 44,390,471.86 16,444,652.19 163,292,532.69 317,815,304.47
carrying amount
2. Opening
94,967,018.38 49,194,837.07 17,169,515.99 171,055,811.25 332,387,182.69
carrying amount
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
19. Goodwill
(1) Gross amounts of goodwill
Unit: RMB yuan
Increase in the current period Decrease in the current period
Investee or item
Generated due to Effect of Effect of
generating Opening balance Closing balance
business exchange rate Disposal exchange rate
goodwill
combination movements movements
Parsun Power 208,031,946.10 208,031,946.10
Italy EDF 70,453,107.20 2,974,394.10 67,478,713.10
Fosber Group 164,757,896.55 6,955,760.91 157,802,136.92
Italy QCorr 13,969,451.67 589,763.28 13,379,688.39
Total 457,212,401.52 10,519,917.01 446,692,484.51
(2) Impairment allowances for goodwill
Unit: RMB yuan
Increase in the current period Decrease in the current period
Investee or item
Effect of Effect of
generating Opening balance Closing balance
Established exchange rate Disposal exchange rate
goodwill
movements movements
Parsun Power 61,855,054.35 61,855,054.35
Italy EDF 70,453,107.20 2,974,391.52 67,478,715.68
Total 132,308,161.55 2,974,391.52 129,333,770.03
20. Long-term prepaid expenses
Unit: RMB yuan
Increase in the Amortization in the
Item Opening balance Other decreases Closing balance
current period current period
Plant decoration
3,502,191.47 873,485.29 311,003.01 26,634.63 4,038,039.12
expenditures
Equipment
1,278,742.55 1,278,742.55
expenditures
Internet access for
73,997.11 9,180.43 64,816.68
offices
Amortization of
144,783.00 6,566.35 3,173.77 135,042.88
lease assets
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Office decoration
2,796,808.88 419,516.83 345,863.77 2,870,461.94
expenditures
Amortization of
5,513,088.39 1,715,575.25 1,487,813.12 5,740,850.52
moulds
CE certification fee 66,112.93 31,567.94 34,544.99
Total 12,096,981.78 4,287,319.92 2,191,994.62 29,808.40 14,162,498.68
21. Deferred tax assets/liabilities
(1) Deferred tax assets before offsetting
Unit: RMB yuan
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Asset impairment
34,615,406.43 6,405,713.92 32,623,867.53 5,685,957.19
allowances
Internal unrealized profit 19,542,131.45 4,690,111.55 20,339,730.05 5,084,932.51
Deductible loss 182,098,097.80 33,154,276.98 186,910,770.30 37,446,876.20
Credit impairment
23,509,138.09 4,940,468.77 10,520,932.53 1,526,582.59
allowances
Deferred income 53,980,505.42 12,955,321.30 56,359,912.05 13,526,378.24
Provisions—after-sales
maintenance service 80,367,640.62 21,684,966.61 78,705,949.88 21,163,160.85
charges
Accrued expenses 28,436,681.14 4,187,879.25 36,599,312.14 6,231,125.47
Equity incentives 27,988,748.26 4,250,276.08 25,006,448.74 3,838,878.64
Financial liabilities at fair
value through profit or 8,785,171.84 1,422,118.28
loss
Others 13,288,499.25 3,594,201.33 22,754,231.10 3,021,049.28
Total 463,826,848.46 95,863,215.79 478,606,326.16 98,947,059.25
(2) Deferred tax liabilities before offsetting
Unit: RMB yuan
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Increase in value in asset
valuation in business
combination not 54,631,866.64 9,857,857.62 56,319,751.75 10,574,995.95
involving entities under
common control
Depreciation difference
9,960,269.88 2,390,464.77 10,059,939.38 2,577,333.08
of fixed assets
Financial assets at fair
value through profit or 38,734,346.76 5,896,474.82 25,962,030.97 4,202,658.70
loss
Others 3,348,093.04 803,542.41 8,046,763.80 1,941,398.43
Total 106,674,576.32 18,948,339.62 100,388,485.90 19,296,386.16
(3) Net balances of deferred tax assets/liabilities after offsetting
Unit: RMB yuan
Offset amount between Offset amount between
Closing balance of Opening balance of
deferred tax assets and deferred tax assets and
Item deferred tax assets or deferred tax assets or
liabilities as at the liabilities as at the
liabilities after offsetting liabilities after offsetting
period-end period-begin
Deferred tax assets 95,863,215.79 98,947,059.25
Deferred tax liabilities 18,948,339.62 19,296,386.16
(4) Breakdown of deferred tax assets unrecognized
Unit: RMB yuan
Item Closing balance Opening balance
Deductible temporary differences 3,204,495.91 34,063,872.36
Deductible losses 1,093,594,216.54 1,233,078,267.55
Total 1,096,798,712.45 1,267,142,139.91
(5) Deductible losses not recognized as deferred tax assets will expire as follows
Unit: RMB yuan
Year Closing amount Opening amount Remark
2024 1,093,594,216.54 1,233,078,267.55
Total 1,093,594,216.54 1,233,078,267.55 --
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
22. Other non-current assets
Unit: RMB yuan
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Prepayments for long-lived assets 1,653,689.00 1,653,689.00 623,889.00 623,889.00
Prepayments for service charges related
363,799.89 363,799.89
to long-term borrowings
Principal and interest for security deposit
for domestic bank to provide guarantee 295,075,000.00 295,075,000.00 295,075,000.00 295,075,000.00
for loan from overseas bank
Large-amount deposit certificates 640,000,000.00 640,000,000.00
Others 1,354,716.96 1,354,716.96 477,358.51 477,358.51
Total 298,083,405.96 298,083,405.96 936,540,047.40 936,540,047.40
23. Short-term borrowings
(1) Short-term borrowings by type
Unit: RMB yuan
Item Closing balance Opening balance
Pledge loan 201,993,336.00 12,037,500.00
Guaranteed loan 16,560,239.29
Credit loan 26,296,297.82 10,935,542.55
Total 228,289,633.82 39,533,281.84
24. Financial liabilities held for trading
Unit: RMB yuan
Item Closing balance Opening balance
Financial liabilities held for trading 5,286,141.68 41,408,109.80
Of which:
Non-controlling interests put options 5,286,141.68 41,408,109.80
Of which:
Total 5,286,141.68 41,408,109.80
140
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
25. Notes payable
Unit: RMB yuan
Type Closing balance Opening balance
Bank acceptance notes 108,984,928.59 104,855,187.97
Total 108,984,928.59 104,855,187.97
26. Accounts payable
(1) Breakdown of accounts payable
Unit: RMB yuan
Item Closing balance Opening balance
Purchases of inventories 614,222,863.46 489,841,770.00
Others 5,804,400.33 13,200,791.05
Total 620,027,263.79 503,042,561.05
(2) Substantial accounts payable over 1 year
Not applicable.
27. Contract liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Receipts in advance 546,618,708.94 362,792,713.35
Total 546,618,708.94 362,792,713.35
28. Employee benefits payable
(1) Breakdown of employee benefits payable
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
I. Short-term benefits 84,647,882.17 264,305,091.21 259,642,918.27 89,310,055.11
II. Retirement
benefits-defined 7,975,680.76 32,305,898.83 34,663,012.20 5,618,567.39
contribution schemes
Total 92,623,562.93 296,610,990.04 294,305,930.47 94,928,622.50
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(2) Breakdown of short-term benefits
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
1. Salaries, bonuses,
allowances and subsidies 79,573,190.90 233,464,001.68 230,973,622.42 82,063,570.16
2. Employee welfare 4,218,192.78 14,445,576.65 12,298,669.21 6,365,100.22
3. Social security
contributions 112,446.62 14,544,658.12 14,431,369.05 225,735.69
Including: medical
insurance 120,597.45 9,626,417.78 9,667,382.67 79,632.56
Work
injury insurance -8,150.83 4,640,785.01 4,486,531.05 146,103.13
Maternity
insurance 277,455.33 277,455.33
4. Housing funds 1,426,147.84 1,426,147.84
5. Labour union funds
and employee education 744,051.87 424,706.92 513,109.75 655,649.04
funds
Total 84,647,882.17 264,305,091.21 259,642,918.27 89,310,055.11
(3) Breakdown of defined contribution schemes
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
1. Basic endowment
insurance 7,975,680.76 32,035,671.41 34,392,784.78 5,618,567.39
2. Unemployment
insurance 270,227.42 270,227.42
Total 7,975,680.76 32,305,898.83 34,663,012.20 5,618,567.39
29. Tax payable
Unit: RMB yuan
Item Closing balance Opening balance
Value-added tax 3,583,467.28 2,698,793.65
Corporate income tax 30,971,262.32 18,169,790.66
Individual income tax 11,368,817.81 14,556,028.94
City maintenance and construction tax 69,887.29 365,856.73
Education surcharge 49,919.50 261,326.23
Stamp duties 22,964.20 51,466.90
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Property tax 1,475,735.94 211,158.56
Land use tax 235,326.00 34,530.60
Others 598.68 20,824.78
Total 47,777,979.02 36,369,777.05
30. Other payables
Unit: RMB yuan
Item Closing balance Opening balance
Other payables 106,797,162.19 81,743,851.64
Total 106,797,162.19 81,743,851.64
(1) Interest payable
Not applicable.
(2) Dividends payable
Not applicable.
(3) Other payables
1) Other payables by nature
Unit: RMB yuan
Item Closing balance Opening balance
Accrued expenses 27,984,543.45 31,242,050.81
Repurchase obligation of restricted shares 21,630,000.00 22,600,000.00
Payables for settled lawsuit 10,138,123.27 10,224,904.52
Security deposits 1,627,227.21 1,327,227.21
Acquisition of equity investments 36,121,968.12
Others 9,295,300.14 16,349,669.10
Total 106,797,162.19 81,743,851.64
2) Substantial other payables over 1 year
Not applicable.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
31. Current portion of non-current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Current portion of long-term borrowings 23,390,234.62 226,597,528.74
Current portion of lease liabilities 18,257,387.13
Total 41,647,621.75 226,597,528.74
32. Other current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Output tax to be written off 9,032,282.74 8,562,086.01
Endorsed undue notes receivable 2,501,310.00 11,800,000.00
Others 1,175,515.36 169,960.03
Total 12,709,108.10 20,532,046.04
33. Long-term borrowings
(1) Long-term borrowings by type
Unit: RMB yuan
Item Closing balance Opening balance
Pledge loan 3,843,100.00 4,427,994.38
Mortgage loan 30,742,955.00 49,087,211.17
Guaranteed loan 293,805,138.34 281,708,768.77
Credit loan 12,903,907.78 18,188,413.97
Total 341,295,101.12 353,412,388.29
34. Lease liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Lease liabilities 67,893,331.89 93,513,747.81
Total 67,893,331.89 93,513,747.81
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35. Long-term employee benefits payable
(1) Long-term employee benefits payable
Unit: RMB yuan
Item Closing balance Opening balance
I. Retirement benefits- net liabilities of
16,531,807.55 18,451,652.74
defined benefit schemes
Total 16,531,807.55 18,451,652.74
36. Provisions
Unit: RMB yuan
Item Closing balance Opening balance Reason for provision
Product quality warranty 93,759,078.85 104,845,110.36
Others 579,599.12 605,147.27
Total 94,338,677.97 105,450,257.63 --
37. Deferred income
Unit: RMB yuan
Increase in the Decrease in the Reason for deferred
Item Opening balance Closing balance
current period current period income
Government grants 16,861,488.27 707,160.31 16,154,327.96
Total 16,861,488.27 707,160.31 16,154,327.96 --
Deferred income associated with government grants:
Unit: RMB yuan
Amount
Amount
New Amount offsetting
recognized
government recognized in costs and
Opening in other Other Closing
Liabilities grants in the non-operating expenses Asset/income-related
balance income in changes balance
current income in the in the
the current
period current period current
period
period
Compensation
for demolition
3,554,516.61 148,830.31 3,405,686.30 Asset-related
of old plant at
Jinfeng Road
Amortized
13,306,971.66 558,330.00 12,748,641.66 Asset-related
deferred income
145
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(4 Mitsubishi
machining
centers and 3
vertical
machining
centers)
Total 16,861,488.27 707,160.31 16,154,327.96
38. Other non-current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Non-controlling interests options 65,835,454.34 68,737,415.25
Total 65,835,454.34 68,737,415.25
39. Share capital
Unit: RMB yuan
Increase/decrease in the current period
Shares as dividend Shares as dividend
Opening balance New Closing balance
converted from converted from Others Subtotal
issues
profit capital surplus
Total
share 1,545,126,957.00 -213,038,790.00 -213,038,790.00 1,332,088,167.00
capital
Other information:
“Others” refer to the repurchase and retirement of the 900,000 restricted shares that had been granted to two resigned awardees but
were still in lockup, as well as of 212,138,790 shares under the 2020 share repurchase plan.
40. Capital surplus
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Capital premium (share
3,976,935,100.86 57,460,671.90 812,163,762.51 3,222,232,010.25
premium)
Other capital surplus 25,457,960.95 17,386,141.80 14,567,800.00 28,276,302.75
Total 4,002,393,061.81 74,846,813.70 826,731,562.51 3,250,508,313.00
Other information, including changes in the current period and reasons for changes:
1. According to equity incentive schemes, treasury shares were transferred to awardees in the period, reducing capital surplus b y
146
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
RMB15,136,800.00;
2. The share-based payments by Dongfang Precision in the period increased capital surplus by RMB16,015,604.33;
3. The share-based payments by Parsun Power in the period increased capital surplus by RMB1,370,537.47;
4. The share repurchase-related service charges in the period reduced capital surplus by RMB98,018.61;
5. The acquisition of non-controlling interests in Guangdong Fosber in the period increased capital surplus by RMB36,121,968.12
and reduced capital surplus by RMB18,981,371.20;
6. The disposal of certain equity interests in Parsun Power (with continuing control) in the period increased capital surplus by
RMB6,770,903.78;
7. The Company repurchased and retired 212,138,790 shares, reducing capital surplus by RMB777,947,572.70; and
8. RMB14,567,800.00 was transferred from other capital surplus to capital premium (share premium) upon the unlocking of
restricted shares.
41. Treasury shares
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Share repurchase 579,403,185.12 490,090,103.18 1,010,433,162.70 59,060,125.60
Total 579,403,185.12 490,090,103.18 1,010,433,162.70 59,060,125.60
Other information, including changes in the current period and reasons for changes:
The increase in treasury shares was driven by the consideration of RMB490,090,103.18 paid by the Company in the current period
for share repurchases. The decrease in the current period was driven by the retirement of treasury shares and the transfer of tre asury
shares as share-based payments to employees.
42. Other comprehensive income
Unit: RMB yuan
Amount generated in the current period
Less:
amount Less: amount
previously previously
recognized recognized in Less:
Amount before After-tax
in other other Inco After-tax
Opening income tax amount Closing
Item comprehensi comprehensiv me amount
balance generated in attributable to balance
ve income e income and tax attributable to
the current non-controllin
and currently expe the parent
period g interests
currently transferred to nse
transferred retained
to profit or earnings
loss
I. Other
-279,123.15 -95,990.87 -95,990.87 -375,114.02
comprehensive
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
income that will
not be reclassified
to profit or loss
Of which: Changes
due to
remeasurement of -279,123.15 -95,990.87 -95,990.87 -375,114.02
defined benefit
schemes
II. Other
comprehensive
income that will be 20,305,212.85 -22,903,050.55 -19,972,095.04 -2,930,955.51 333,117.81
reclassified to
profit or loss
Differences
arising from the
translation of
foreign 20,349,184.92 -22,903,050.55 -19,972,095.04 -2,930,955.51 377,089.88
currency-denomin
ated financial
statements
Others -43,972.07 -43,972.07
Total other
comprehensive 20,026,089.70 -22,999,041.42 -20,068,085.91 -2,930,955.51 -41,996.21
income
43. Special reserve
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Expenses for safety
10,057,438.97 2,257,128.43 1,283,353.59 11,031,213.81
production
Total 10,057,438.97 2,257,128.43 1,283,353.59 11,031,213.81
44. Surplus reserves
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Statutory surplus
51,830,974.45 51,830,974.45
reserves
148
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Total 51,830,974.45 51,830,974.45
45. Retained earnings
Unit: RMB yuan
Item Current period Last year
Retained earnings as at the end of the prior year
-891,492,837.06 -1,280,673,461.14
before adjustment
Opening retained earnings after adjustment -891,492,837.06 -1,280,673,461.14
Add: Net profit attributable to owners of the
191,117,520.46 389,180,624.08
parent in the current period
Closing retained earnings -700,375,316.60 -891,492,837.06
46. Operating revenue and costs
Unit: RMB yuan
H1 2021 H1 2020
Item
Revenue Costs Revenue Costs
Principal operations 1,390,814,259.00 988,136,647.75 1,122,698,491.71 803,803,269.33
Other operations 9,744,705.18 3,318,827.11 54,792,733.42 38,023,554.51
Total 1,400,558,964.18 991,455,474.86 1,177,491,225.13 841,826,823.84
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of income corresponding to performance obligations that had been contracted but
not yet performed or fulfilled was RMB546,618,708.94.
47. Taxes and surcharges
Unit: RMB yuan
Item H1 2021 H1 2020
City maintenance and construction tax 1,406,514.54 1,731,517.11
Education surcharge 1,908,759.68 1,220,501.41
Property tax 2,265,213.88 2,203,219.15
Land use tax 269,856.60 239,684.40
Vehicle and vessel use tax 15,452.53 9,930.39
Stamp duties 376,940.91 217,428.91
Others 76,276.26 65,860.55
Total 6,319,014.40 5,688,141.92
149
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
48. Selling expenses
Unit: RMB yuan
Item H1 2021 H1 2020
Employee benefits 22,547,654.97 22,078,365.25
Transportation expenses 5,247,059.73 16,540,528.79
Commissions and agency fees 21,675,931.57 20,394,895.39
Advertising and exhibition expenses 2,527,612.71 2,247,452.05
Product quality warranties 8,474,477.51 17,951,965.17
Travel and business entertainment
4,064,048.79 2,516,914.22
expenses
Others 4,013,776.04 9,565,468.93
Total 68,550,561.32 91,295,589.80
49. Administrative expenses
Unit: RMB yuan
Item H1 2021 H1 2020
Employee benefits 55,345,233.87 59,770,138.86
Depreciation and amortization expenses 17,355,893.58 12,977,606.64
Intermediary expenses 11,985,471.80 11,905,267.41
Equity incentives 17,386,141.80 10,185,066.67
Travel and business entertainment
4,633,656.20 4,401,637.79
expenses
Others 23,054,956.31 23,069,858.52
Total 129,761,353.56 122,309,575.89
50. R&D expenses
Unit: RMB yuan
Item H1 2021 H1 2020
Employee benefits 23,772,680.95 23,210,086.32
Depreciation and amortization expenses 8,386,778.88 5,869,247.71
Material expenses 9,415,709.52 1,506,176.53
Travel and business entertainment
1,025,814.85 841,342.08
expenses
Others 5,624,588.68 3,778,071.35
150
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Total 48,225,572.88 35,204,923.99
51. Finance costs
Unit: RMB yuan
Item H1 2021 H1 2020
Interest expenses 4,899,967.92 6,239,583.43
Less: Interest income 11,985,482.68 11,409,249.10
Exchange gains and losses 4,223,803.17 -589,906.60
Others 1,235,137.03 4,025,054.09
Total -1,626,574.56 -1,734,518.18
52. Other income
Unit: RMB yuan
Source of other income H1 2021 H1 2020
Government grants 6,712,327.65 6,902,790.80
Handling charges for individual income tax
141,332.03 194,481.14
withheld
Total 6,853,659.68 7,097,271.94
53. Investment income
Unit: RMB yuan
Item H1 2021 H1 2020
Income from long-term equity investments
1,249,209.43 23,671.37
measured at equity method
Income from financial assets held for trading 51,719,985.02 32,701,312.96
Total 52,969,194.45 32,724,984.33
54. Gains and losses on changes in fair value
Unit: RMB yuan
Source of gains and losses on changes in
H1 2021 H1 2020
fair value
Financial assets held for trading 21,393,373.17 13,309,111.52
Total 21,393,373.17 13,309,111.52
151
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55. Credit impairment loss
Unit: RMB yuan
Item H1 2021 H1 2020
Loss on doubtful receivables 1,914,927.30
Impairment loss of contract assets 257,325.86
Loss on doubtful accounts receivable 229,855.72 -1,556,386.05
Total 487,181.58 358,541.25
56. Asset impairment loss
Unit: RMB yuan
Item H1 2021 H1 2020
II. Inventory valuation loss and loss on
583,807.10 -2,978,396.97
impairments of contract performance costs
Total 583,807.10 -2,978,396.97
57. Gains on disposal of assets
Unit: RMB yuan
Source of gains on disposal of assets H1 2021 H1 2020
Gain on disposal of non-current assets 276,635.45
Others 1,972.08
Total 276,635.45 1,972.08
58. Non-operating income
Unit: RMB yuan
Amount recognized in
Item H1 2021 H1 2020
exceptional gains and losses
Others 364,145.89 176,776.93 364,145.89
Total 364,145.89 176,776.93 364,145.89
Government grants recognized in profit or loss: Not applicable.
59. Non-operating expenses
Unit: RMB yuan
Amount recognized in
Item H1 2021 H1 2020
exceptional gains and losses
152
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Donations 62,122.44 1,446,189.29 62,122.44
Sponsorship expenditures 2,000.00 16,600.00 2,000.00
Loss on disposal of non-current
32,016.28 32,016.28
assets
Others 324,101.76 2,060.00 324,101.76
Total 420,240.48 1,464,849.29
60. Income tax expenses
(1) Income tax expenses
Unit: RMB yuan
Item H1 2021 H1 2020
Current income tax expenses 36,572,973.93 7,751,569.77
Deferred income tax expenses 1,464,031.55 -2,109,259.77
Total 38,037,005.48 5,642,310.00
(2) Reconciliation between accounting profit and income tax expenses
Unit: RMB yuan
Item H1 2021
Gross profit 240,381,318.56
Income tax calculated at statutory/applicable tax rates 37,138,222.20
Different tax rates for specific provinces or enacted by local
18,108,628.25
authority
Adjustment to income tax in previous periods -4,660,640.02
Income not subject to tax -2,673,767.21
Costs, expenses and losses not deductible for tax -5,035,584.01
Utilization of deductible losses on previously unrecognized
-5,489,295.49
deferred tax assets
Effect of deductible temporary differences or deductible losses
522,535.68
on current unrecognized deferred tax assets
Others 126,906.08
Income tax expenses 38,037,005.48
61. Other comprehensive income
See Note “42. Other Comprehensive Income”.
153
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
62. Line items of the cash flow statement
(1) Cash generated from other operating activities
Unit: RMB yuan
Item H1 2021 H1 2020
Current accounts and others 10,559,708.11 19,138,595.34
Interest income 7,150,338.75 8,684,557.75
Government grants 6,146,499.37 3,413,534.85
Letter of guarantee received 5,738,155.61
Total 29,594,701.84 31,236,687.94
(2) Cash used in other operating activities
Unit: RMB yuan
Item H1 2021 H1 2020
Selling expenses in cash 38,137,786.88 68,632,511.73
Administrative expenses in cash 53,535,286.25 37,794,087.99
R&D expenses in cash 12,975,177.50
Letter of guarantee paid 1,500,000.00
Current accounts and others 26,935,772.72 112,769,312.77
Security deposits
Total 133,084,023.35 219,195,912.49
(3) Cash generated from other investing activities
Unit: RMB yuan
Item H1 2021 H1 2020
Performance compensation 2,453,179.98
Bank’s wealth management 4,827,403,841.13
Term deposits
Others
Total 2,453,179.98 4,827,403,841.13
(4) Cash used in other investing activities
Unit: RMB yuan
Item H1 2021 H1 2020
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Bank’s wealth management 5,144,300,000.00
Total 5,144,300,000.00
(5) Cash generated from other financing activities
Unit: RMB yuan
Item H1 2021 H1 2020
Security deposits for bank acceptance
69,199,415.97
notes
Share subscription 5,651,200.00
Total 74,850,615.97
(6) Cash used in other financing activities
Unit: RMB yuan
Item H1 2021 H1 2020
Security deposits paid for internal
210,000,000.00 290,000,000.00
guarantees for external loans
Share repurchase 491,088,121.79
Security deposits for bank acceptance
58,766,410.12
notes
Repayment of lease liabilities 10,705,539.89
Total 770,560,071.80 290,000,000.00
63. Supplemental information on statement of cash flows
(1) Supplemental information on statement of cash flows
Unit: RMB yuan
Supplementary information H1 2021 H1 2020
1. Reconciliation of net profit to net cash
-- --
generated from/used in investing activities:
Net profit 202,344,313.08 126,483,789.66
Add: Asset impairment allowances -1,070,988.68 2,619,855.72
Depreciation of fixed assets,
depletion of oil and gas assets, and 25,543,700.78 24,591,531.90
depreciation of productive living assets
Depreciation of right-of-use assets 9,380,832.96
155
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Amortization of intangible assets 13,924,270.85 8,481,822.44
Amortization of long-term prepaid
2,191,994.62 2,046,625.18
expenses
Loss on the disposal of fixed
assets, intangible assets and other long-lived -276,635.45 -1,972.08
assets (“-” for gain)
Loss on the retirement of fixed
32,016.28
assets (“-” for gain)
Loss on changes in fair value (“-”
-21,393,373.17 -13,309,111.52
for gain)
Finance costs (“-” for income) 4,899,967.92 6,239,815.10
Loss on investment (“-” for
-52,969,194.45 -32,724,984.33
income)
Decrease in deferred tax assets (“-”
295,818.56 -4,983,844.58
for increase)
Increase in deferred tax liabilities
193,925.50 -2,806,737.40
(“-” for decrease)
Decrease in inventories (“-” for
-268,008,107.81 -163,596,564.15
increase)
Decrease in operating receivables
-175,004,370.95 -21,051,248.91
(“-” for increase)
Increase in operating payables
448,553,516.41 97,420,432.29
(“-” for decrease)
Others 17,386,141.80
Net cash generated from/used in
206,023,828.25 29,409,409.32
operating activities
2. Significant investing and financing
activities that involve no cash proceeds or -- --
payments:
Conversion of debt to capital
Current portion of convertible corporate
bonds
Fixed assets leased in in finance leases
3. Net changes in cash and cash equivalents: -- --
Closing balance of cash 1,543,198,951.25 1,519,015,849.88
Less: Opening balance of cash 860,601,236.78 2,226,724,737.39
Add: Closing balance of cash
equivalents
156
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Less: Opening balance of cash
equivalents
Net increase in cash and cash
682,597,714.47 -707,708,887.51
equivalents
(2) Net cash payments for the acquisition of subsidiaries in the current period
Not applicable.
(3) Net cash proceeds from the disposal of subsidiaries in the current period
Not applicable.
(4) Breakdown of cash and cash equivalents
Unit: RMB yuan
Item Closing balance Opening balance
I. Cash 1,543,198,951.25 860,601,236.78
Including: cash on hand 606,577.65 217,540.96
Bank deposits readily available 1,542,592,373.60 857,460,233.91
Other cash and bank balances
readily available 2,923,461.91
III. Closing balance of cash and cash
1,543,198,951.25 860,601,236.78
equivalents
64. Assets with restricted ownership or right of use
Unit: RMB yuan
Item Closing carrying amount Reason for restriction
Cash and bank balances 223,359,245.39 Security deposits
Other non-current assets 295,075,000.00 Security deposits for loans of subsidiaries
Total 518,434,245.39 --
65. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Unit: RMB yuan
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
157
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Cash and bank balances -- --
Including: USD 57,897,349.67 6.4601 374,022,668.60
EUR 44,599,781.14 7.6862 342,802,837.80
HKD 126,756.60 0.8321 105,474.17
AUD
Accounts receivable -- --
Including: USD 504,281.00 6.4601 3,257,705.69
EUR 47,125,870.54 7.6862 362,218,866.14
HKD 0.8321
Long-term borrowings -- --
Including: USD 6.4601
EUR 44,403,619.62 7.6862 341,295,101.12
HKD
Accounts payable
Including: USD 13,318,320.14 6.4601 86,037,679.94
EUR 60,147,136.48 7.6862 462,302,920.41
Other receivables
Including: USD 611,235.50 6.4601 3,948,642.45
EUR 8,106,465.65 7.6862 62,307,916.28
Short-term borrowings
Including: USD 6.4601
EUR 27,162,341.71 7.6862 208,775,190.85
Current portion of non-current
liabilities
Including: USD 6.4601
EUR 4,768,780.10 7.6862 36,653,797.60
Other payables
Including: USD 128,839.00 6.4601 832,312.82
EUR 2,117,918.68 7.6862 16,278,746.56
(2) Overseas business entities (for substantial overseas business entities, the following information shall be
disclosed: principal place of business, functional currency and basis for the choice, change of functional
currency and reasons)
□ Applicable √ Not applicable
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
66. Government grants
(1) Basic information of government grants
Unit: RMB yuan
Amount recognized in profit or
Type Amount Recognized in
loss
Compensation for demolition of
3,554,516.61 Deferred income 148,830.31
the old plant in Jinfeng Road
4 Mitsubishi double-column
milling machines and 3 fixed
13,306,971.66 Deferred income 558,330.00
double-column milling
machines
Thematic funds of 2020
intellectual property subsidies
of Nanhai District
31,626.00 Other income 31,626.00
Administration for Market
Regulation, Foshan City (2nd
batch)
Receipt of 2020 overseas R&D
institution project support funds
from the Nanhai Park
1,000,000.00 Other income 1,000,000.00
Administration of the Foshan
National High-tech Industrial
Development Zone
Receipt of subsidy funds for the
2020 First Identification Award
for Solo Champion
Manufacturing Enterprise from
300,000.00 Other income 300,000.00
the Nanhai Park Administration
of the Foshan National
High-tech Industrial
Development Zone
Receipt of special subsidy funds
for 2020 leading enterprises in
the Foshan High-tech Zone
from the Nanhai Park 150,000.00 Other income 150,000.00
Administration of the Foshan
National High-tech Industrial
Development Zone
Receipt of subsidies for R&D
259,500.00 Other income 259,500.00
expenses of high-tech
159
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
enterprises from the Foshan
Science and Technology Bureau
Receipt of Foshan support fund
comprehensive service platform
(Fuchitong) subsidy funds -
200,000.00 Other income 200,000.00
2021 support funds for
industrial product quality
improvement of Foshan City
Receipt of subsidies for
high-tech enterprise
identification in Foshan City in 100,000.00 Other income 100,000.00
2020 from the Foshan Science
and Technology Bureau
Receipt of special funds for
high-quality economic
development in 2021 from the 16,363.24 Other income 16,363.24
Nanhai District Economic
Promotion Bureau, Foshan City
Receipt of subsidy funds for
invention patent annuities from
the Foshan Municipal 35,630.00 Other income 35,630.00
Administration for Market
Regulation
Receipt of subsidies for the
2020 First Identification Award 250,000.00 Other income 250,000.00
for Gazelle Enterprise
Receipt of special subsidy funds
for 2020 leading enterprises
from the Nanhai Park
150,000.00 Other income 150,000.00
Administration of the Foshan
National High-tech Industrial
Development Zone
Receipt of subsidies for national
and provincial intellectual
200,000.00 Other income 200,000.00
property demonstration and
advantage enterprises
Receipt of (subsidies for) R&D
expenses of high-tech
74,700.00 Other income 74,700.00
enterprises from the Foshan
Science and Technology Bureau
Receipt of thematic funds of
100,000.00 Other income 100,000.00
2020 intellectual property
160
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
subsidies of Nanhai District
Administration for Market
Regulation (2nd batch)
Receipt of subsidies for Chinese
invention patent licensing from
the Foshan support fund 21,000.00 Other income 21,000.00
comprehensive service platform
(Fuchitong)
2020 enterprise rewards for
50,000.00 Other income 50,000.00
highly skilled leading talent
Special funds for business
20,103.00 Other income 20,103.00
development
Pandemic-related subsidies 1,000.00 Other income 1,000.00
Foreign government grants 3,045,245.10 Other income 3,045,245.10
Total 22,866,655.61 6,712,327.65
VIII. Changes to the Scope of Consolidation
1. Business combination not involving entities under common control
(1) Business combinations not involving entities under common control in the current period
Not applicable.
(2) Cost of acquisition and goodwill
Not applicable.
(3) Identifiable assets and liabilities of acquirees on the date of acquisition
Not applicable.
(4) Gains or losses arising from the remeasurement at fair value of equity interests held before the dates o f
acquisition
Indicate whether there were business combinations which were achieved by stages and of which control was obtained in the
Reporting Period.
□ Yes √ No
161
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(5) Inability to reasonably determine the acquisition consideration or the fair value of acquirees’
identifiable assets and liabilities at acquisition dates or the period-ends of the combinations
(6) Other information
2. Business combinations involving entities under common control
(1) Business combinations involving entities under common control in the current period
Not applicable.
(2) Cost of acquisition
Not applicable.
(3) Carrying amounts of acquirees’ assets and liabilities at dates of acquisition
Not applicable.
3. Counter-purchases
Basic transaction information, basis for the constitution of a counter-purchase, assets retained by the Company, whether the
liabilities constitute business and why, determination of the cost of combination, adjustments to equities and computing when
treating the transaction as an equity transaction: Not applicable.
4. Disposal of subsidiaries
Indicate whether there was any transaction where the Company ceased to control the subsidiary in a single disposal of its
investment in the subsidiary.
□ Yes √ No
Indicate whether there was any disposal of the investment in a subsidiary which was carried out by stages and where control over
the subsidiary ceased in the Reporting Period.
□ Yes √ No
5. Changes to the scope of consolidation for other reasons
Changes to the scope of consolidation due to other reasons (incorporation, liquidation, etc.): Not applicable.
162
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
6. Other information
IX. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of the Group
Principal place of Place of The Company’s interest How the subsidiary was
Subsidiary Business nature
business registration Direct Indirect obtained
Dongfang
HK HK Trading 100.00% Incorporated
Precision (HK)
Dongfang
Precision Netherland Netherland Trading 90.00% 10.00% Incorporated
(Netherland)
Foshan, Foshan,
Fosber Asia Guangdong, Guangdong, Manufacturing 89.20% Incorporated
China China
Suzhou, Jiangsu, Suzhou, Jiangsu,
Suzhou Jinquan Investment 2.97% Incorporated
China China
Acquired in business
Suzhou, Jiangsu, Suzhou, Jiangsu,
Parsun Power Manufacturing 8.24% 61.72% combination not under
China China
common control
Acquired in business
Shunyi Suzhou, Jiangsu, Suzhou, Jiangsu,
Investment 100.00% combination not under
Investment China China
common control
Foshan, Foshan,
Yinglian Digital Guangdong, Guangdong, Manufacturing 100.00%
China China
Acquired in business
Italy EDF Italy Italy Manufacturing 100.00% combination not under
common control
Acquired in business
Fosber Group Italy Italy Manufacturing 100.00% combination not under
common control
Acquired in business
Fosber America America America Manufacturing 100.00% combination not under
common control
Acquired in business
Fosber Tianjin Tianjin, China Tianjin, China Manufacturing 100.00% combination not under
common control
163
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Acquired in business
Tiruna Group Spain Spain Manufacturing 70.00% combination not under
common control
Acquired in business
Tiruna S.L.U. Spain Spain Manufacturing 70.00% combination not under
common control
Tratatamientos Acquired in business
Industriales Spain Spain Manufacturing 70.00% combination not under
Tiruna S.A.U. common control
Acquired in business
Tiruna France
France France Manufacturing 70.00% combination not under
SARL
common control
Acquired in business
SCI Candan France France Manufacturing 70.00% combination not under
common control
Acquired in business
Tiruna UK Ltd UK UK Manufacturing 70.00% combination not under
common control
Acquired in business
Tiruna America America America Manufacturing 85.00% combination not under
common control
Italy Qcorr Italy Italy Manufacturing 60.00% Incorporated
Dongfang Haikou, Hainan, Haikou, Hainan, Industrial Interne
t 100.00% Incorporated
Digicom China China
Dongfang Foshan, Foshan,
Digicom Guangdong, Guangdong, Industrial Internet 100.00% Incorporated
(Guangdong) China China
Yineng Haikou, Hainan, Haikou, Hainan,
Investment 100.00% Incorporated
Investment China China
Reason for holding different equity percentage and voting right percentage in a subsidiary: Not applicable.
Reason for holding half or below of voting rights but still controlling the investee, and holding over half of voting rights but not
controlling the investee: Not applicable.
Basis for control over substantial structured entities included in the consolidated financial statements: Not applicable.
Basis for determining whether the Company was an agent or consignor: Not applicable.
Other information: Not applicable.
(2) Principal non-wholly-owned subsidiaries
Unit: RMB yuan
Subsidiary Non-controlling interests Net profit or loss Declared dividends for Closing balance of
164
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
attributable to non-controlling interests non-controlling interests
non-controlling interests in the current period
in the current period
Fosber Asia 10.80% 4,256,233.58 7,481,601.64
Reason for non-controlling shareholder holding different equity percentage and voting right percentage in a subsidiary: Not
applicable.
Other information: Not applicable.
(3) Key financial information of principal non-wholly-owned subsidiaries
Unit: RMB yuan
Closing balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Fosber 294,893, 8,311,03 303,204, 216,871, 13,391,4 230,263, 234,958, 7,397,59 242,356, 180,646, 11,984,1 192,631,
Asia 549.13 5.06 584.19 917.05 38.23 355.28 647.84 0.50 238.34 968.18 50.68 118.86
Unit: RMB yuan
H1 2021 H1 2020
Net cash Net cash
Total generated Total generated
Subsidiary Operating Operating
Net profit comprehensive from/used in Net profit comprehensive from/used in
revenue revenue
income operating income operating
activities activities
Fosber
150,406,387.73 22,563,160.40 22,563,160.40 11,426,163.84 33,057,423.91 -3,634,750.76 -3,634,750.76 3,296,292.27
Asia
(4) Major restrictions with respect to use of the group’s assets and repayment of the group’s liabilities
(5) Financial or other support provided for structured entities included in the consolidated financial
statements
Other information: Not applicable.
2. Transactions where changes occurred to the Company’s interests in subsidiaries but the Company still
controlled the subsidiaries
(1) Changes in interests in subsidiaries
(2) Effects of the transactions on non-controlling interests and equity attributable to owners of the parent
Unit: RMB yuan
165
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Parsun Power Fosber Asia
--Cash 100,000,000.00 36,121,968.12
Total acquisition costs/disposal
100,000,000.00 36,121,968.12
consideration
Less: Share of the subsidiary’s net assets
93,229,096.22 17,140,596.92
based on the acquired/disposed interest
Of which: Capital surplus adjustment 6,770,903.78 -18,981,371.20
3. Interests in joint ventures and associates
(1) Principal joint ventures and associates
The Company’s interest Accounting
treatment of
Joint venture or Principal place of Place of
Business nature investment in the
associate business registration Direct Indirect
joint venture or
associate
Foshan,
Jaten Robot Foshan Guangdong, Manufacturing 21.00% Equity method
China
Reason for holding different equity percentage and voting right percentage in a joint venture or associate: Not applicable.
Reason for holding below 20% voting rights but having a significant influence, or holding 20% or above voting rights but not
having a significant influence: Not applicable.
(2) Key financial information of principal joint ventures
Unit: RMB yuan
Closing balance/H1 2021 Opening balance/H1 2020
Jaten Robot Jaten Robot
Current assets 273,534,256.77 237,153,222.57
Non-current assets 115,953,406.29 112,043,388.53
Total assets 389,487,663.06 349,196,611.10
Current liabilities 175,575,468.14 148,070,950.71
Non-current liabilities 22,331,242.84 27,571,880.84
Total liabilities 197,906,710.98 175,642,831.55
Equity attributable to owners of the parent 191,580,952.08 173,553,779.55
Share of net assets based on the
40,231,999.94 36,446,293.71
Company’s interest
Carrying amount of equity investments in 72,149,298.35 70,900,088.92
166
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
associates
Operating revenue 70,380,196.61 35,272,166.09
Net profit 5,948,616.35 551,646.47
Total comprehensive income 5,948,616.35 551,646.47
X. Risks Associated with Financial Instrume nts
The Group is faced with various financial instrument risks in its routine activities, mainly including credit risk, liquidity risk and market
risk (including exchange rate risk and interest rate risk).
The Group's Board of Directors is fully responsible for the determination of risk management objectives and policies and assumes
ultimate responsibility for such risk management objectives and policies, but the Board of Directors has authorized the Chief
Executive's Office of the Group to design and implement procedures to ensure the effective execution of risks management obje ctives
and policies. The Board of Directors reviews the effectiveness of the executed procedures and the rationality of the risk management
objectives and policies through the monthly reports submitted by the treasury supervisor. The internal auditors of the Group will also
audit the risk management policies and procedures and will report relevant findings to the Audit Committee.
The Group's overall goals for risk management are to develop risk management policies to minimize risks without unduly affecting
the competitiveness and strain capacity of the Group.
Credit risk
The Group transacts only with recognized and reputable third parties. According to the Group's policies, credit checks are ne eded for
all customers that require transactions should be conducted by means of credit. Addit ionally, the Group performs continuous
monitoring of the balance of accounts receivable to ensure that the Group will not face major bad debt risk. For transactions not
settled in the accounting standard currency of the relevant business unit, unless specifically approved by the credit control department
of the Group, the Group will not provide credit transaction conditions.
Since the counterparties of cash and bank balances and notes receivable are banks with a good reputation and high credit rating, the
credit risk of such financial instruments is low.
Other financial assets of the Group mainly include accounts receivable, other receivables and contract assets, the credit ris k of which
arises from counterparty default, and the maximum risk exposure is equal to the carrying value of these instruments.
The Group transacts only with recognized and reputable third parties, so no collateral is required. Credit risk concentration is
managed by customer/counterparty, geographic region and industry. Because the customer base of accounts receivable of the Group
is widely dispersed in different departments and industries, there is no major credit risk concentration within the Group. The Group
does not hold any collateral or other credit enhancement on the balance of accounts receivable.
Criteria for judging significant increases in credit risk
The Company assesses whether or not the credit risk of the relevant financial instruments has increased significantly since the initial
recognition at each balance sheet date. While determining whether the credit risk has significantly increased since initial recognition
or not, the Company takes into account the reasonable and substantiated information that is accessible without exerting undue extra
167
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
cost or effort, including qualitative and quantitative analysis based on the historical data of the Company, external credit risk rating,
and forward-looking information. Based on the single financial instrument or the combination of financial instruments with similar
characteristics of credit risk, the Company compares the risk of default of financial instruments on the balance sheet date with that on
the initial recognition date in order to determine changes in the risk of default during the expected lifetime of financial instruments.
Definition of credit-impaired financial assets
The standard adopted by the Group to determine whether a credit impairment occurs is consistent with the internal credit risk
management objectives of the relevant financial instrument, taking into account quantitative and qualitative criteria. When the Group
assesses whether the credit impairment of debtor occurred, the principal factors considered are as follows:
（1） Significant financial difficulty of the issuer or debtor;
（2） Debtors’ breach of contract, such as defaulting or becoming overdue on interest or principal payments;
（3） The creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having granted to
the debtor a concession that the creditor would not otherwise consider;
（4） It is becoming probable that the debtor will enter bankruptcy or other financial restructuring;
（5） The disappearance of an active market for that financial asset because of financial difficulties of the issuer or debtor;
（6） The purchase or origination of a financial asset at a deep discount that reflects the incurrence of credit losses.
The credit impairment on a financial asset may be caused by the combined effect of multiple events and may not be necessarily due
to a single event.
Parameters of ECL measurement
Based on whether there is a significant increase in credit risk and whether there is an impairment of assets, the Group measures the
impairment loss for different assets with ECL of 12 months or the entire lifetime respectively. The key measuring parameters of ECL
include probability of default (PD), loss given default (LGD) and exposure at default (EAD). The Group takes into account the
quantitative analysis of historical statistics (such as ratings of counterparties, manners of guarantees and types of collaterals,
repayments, etc.) and forward-looking information.
The relevant definitions are as follows:
（1） PD refers to the possibility that the debtor will not be able to fulfill its obligations of repayment over the next 12 months or
throughout the entire remaining lifetime. The Group’s PD is adjusted based on the results of the expected credit loss model,
taking into account the forward-looking information to reflect the debtor’s PD under the current macroeconomic
environment;
（2） LGD refers to the Group’s expectation of the extent of the loss resulting from the default exposure. Depending on the type of
counterparty, the method and priority of the recourse, and the type of collaterals, the LGD varies. The LGD is the percentage
of loss of risk exposure at the time of default, calculated over the next 12 months or over the entire remaining lifetime;
（3） EAD is the amount that the Company should be reimbursed at the time of the default in the next 12 months or throughout the
entire remaining lifetime.
The assessment of a significant increase in credit risk and the calculation of ECL both involve forward-looking information. Through
the analysis of historical data, the Group identifies the key economic indicators that affect the credit risk and ECL.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
As at 30 June 2021, there were no significant increases in the credit risk of the Group.
Exchange rate risk
The Group is exposed to trading exchange rate risks. Such exposures arise from sales or purchases by business units in currencies
other than the units’ functional currencies.
The sensitivity analysis of exchange rate risks is set out in the following table, reflecting the impact of reasonable and probable
change in the exchange rates of EUR and USD on net profit or loss and other comprehensive income (net of tax) assuming that other
variables remain constant.
Increase/(decrease) in Increase/(decrease) in net Increase/(decrease) in total equity
exchange rate (%) profit or loss
Stronger RMB against EUR 2.00 4,529,237.27 4,529,237.27
Weaker RMB against EUR (2.00) -4,529,237.27 -4,529,237.27
Stronger RMB against USD 2.00 -4,915,795.70 -4,915,795.70
Weaker RMB against USD (2.00) 4,915,795.70 4,915,795.70
Capital management
The primary objective of the Group’s capital management is to safeguard the Group’s ability to continue as a going concern and to
maintain healthy capital ratios in order to support its business and maximise shareholders’ value.
The Group manages its capital structure and makes adjustments in the light of changes in economic conditions and in the risk profiles
of relevant assets. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. The Group is not subject to any externally imposed capital requirements. No changes
were made in the objectives, policies or processes for managing capital as of 30 June 2021.
XI. Disclosure of Fair Values
1. The closing fair value of assets and liabilities measured at fair value
Unit: RMB yuan
Closing fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Continuous
-- -- -- --
measurement of fair value
(I) Financial assets held
1,022,938,402.56 1,022,938,402.56
for trading
1. Financial assets at fair
value through profit or 1,022,938,402.56 1,022,938,402.56
loss of the current period
(1) Debt instrument
1,022,938,402.56 1,022,938,402.56
investments
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Receivables financing 89,380,635.10 89,380,635.10
Other non-current
6,050,655.19 6,050,655.19
financial assets
Total assets continuously
1,022,938,402.56 95,431,290.29 1,118,369,692.85
measured at fair value
(VI) Financial liabilities
5,286,141.68 5,286,141.68
held for trading
Other current liabilities
Other non-current
65,835,454.34 65,835,454.34
liabilities
Total liabilities
continuously measured at 71,121,596.02 71,121,596.02
fair value
II. Non-continuous
-- -- -- --
measurement of fair value
2. Basis for determining the market price of continuous and non-continuous Level 1 fair value
measurement items
3. Continuous and non-continuous Level 2 fair value measurement items, valuation techniques used, and
the qualitative and quantitative information of important parameters
4. Continuous and non-continuous Level 3 fair value measurement items, valuation techniques used, and
the qualitative and quantitative information of important parameters
5. Continuous and non-continuous Level 3 fair value measurement items, information on the adjustment
between the opening and closing book value, and sensitivity analysis of unobservable parameters
6. If a continuous fair value measurement item was converted between levels for the current period, the
reasons for such conversion and the policies for determining the conversion point
7. Valuation technique changes incurred in the current period and the reasons for such changes
8. The fair value of financial assets and financial liabilities not measured at fair value
9. Other information
XII. Related Parties and Related-party Transactions
1. Parent
Information about the parent of the Company:
170
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Name Relationship with the Company Interest in the
Company (%)
The Company’s controlling shareholder and 20.32
Tang Zhuolin (individual)
one of the actual controllers
Tang Zhuomian (individual) One of the Company’s actual controllers 7.75
The ultimate controllers of the Company are Tang Zhuolin and Tang Zhuomian.
Other information:
For substantial joint ventures and associates of the Company, see Note “IX. Interests in Other Entities”.
2. Subsidiaries of the Company
See Note IX.
3. Joint ventures and associates of the Company
For substantial joint ventures and associates of the Company, see Note IX.
Other joint ventures or associates that were involved in related-party transactions with the Company in the current period, or that
were involved in related-party transactions with the Company in prior periods with balances lasting into the current period: Not
applicable.
4. Other related parties
Other related parties Relationship with the Company
Qiu Yezhi Director and General Manager
Zhou Wenhui Director, Board Secretary and Vice President
Xie Weiwei Director and Deputy General Manager
Mai Zhirong Independent Director
Peng Xiaowei Independent Director
He Weifeng Independent Director
Chen Huiyi Chairman of the Supervisory Committee
Zhao Xiuhe Supervisor
He Baohua Supervisor
Shao Yongfeng Chief Financial Officer and Vice President
5. Related-party transactions
(1) Related-party transactions involving purchase and sale of goods, as well as receipt and rendering of
services
Not applicable.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(2) Management entrustment and contracting between the Company and related parties
Not applicable.
(3) Leases between the Company and related parties
Not applicable.
(4) Guarantees provided between the Company and related parties
Not applicable.
(5) Loans between the Company and related parties
Not applicable.
(6) Asset transfers and debt restructuring involving related parties
Not applicable.
(7) Remuneration of key management
Unit: RMB yuan
Item H1 2021 H1 2020
Remuneration of key management 7,727,395.52 8,117,846.67
(8) Other related-party transactions
6. Amounts receivable from or payable to related parties
(1) Amounts receivable from related parties
Not applicable.
(2) Amounts payable to related parties
Not applicable.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
7. Commitments involving related parties
8. Other information
XIII. Share-based Payments
1. The overall situation of share-based payments
√ Applicable □ Not applicable
Unit: RMB yuan
Total amount of various equity instruments granted by the Company
4,240,000.00
during the current period
Total amount of various equity instruments exercised by the Company
4,310,000.00
during the current period
Total amount of various equity instruments invalidated during the current
930,000.00
period of the Company
2. Equity-settled share-based payments
√ Applicable □ Not applicable
Unit: RMB yuan
Methods for determining the fair value of equity instruments on the
Market prices
grant date
Basis for determining the number of feasible right equity
2020 Restricted Share Incentive Plan
instruments
Reason for significant difference between estimates of the current
Not applicable
period and the last period
Cumulative amount of equity-settled share-based payments
recognized in capital surplus 42,556,548.28
Total costs of equity-settled share-based payments in the current
period 17,386,141.80
3. Cash-settled share-based payments
□ Applicable √ Not applicable
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
4. Modification and termination of share-based payments
5. Other information
XIV. Commitments and Contingent Events
1. Significant commitments
Significant valid commitments on the balance sheet date: Not applicable.
2. Contingent events
(1) Significant valid contingent events on the balance sheet date
(2) The Company shall make it clear if it has no significant contingent events that require to be disclosed.
There were no significant contingent events that require to be disclosed.
3. Other information
XV. Events after the Balance Sheet Date
1. Significant non-adjustment matters
2. Profit distribution
3. Return of sales
4. Other events after the balance sheet date
XVI. Other Significant Matters
1. Segment reporting
(1) Basis for the determination of reporting segments and accounting policies
(2) Financial information of reporting segments
Unit: RMB yuan
Item Domestic entities Overseas entities Offset Total
Operating revenue 614,905,538.38 910,057,458.54 -124,404,032.74 1,400,558,964.18
Cost of sales 392,816,445.06 681,323,466.68 -82,684,436.88 991,455,474.86
Total assets 4,868,694,997.41 2,531,156,967.38 -921,021,009.15 6,478,830,955.64
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Total liabilities 1,317,579,200.63 1,711,679,235.70 -595,194,225.50 2,434,064,210.83
(3) Reasons shall be given if the Company has no reporting segments or is unable to disclose the total
assets and liabilities of the reporting segments.
(4) Other information
XVII. Notes to Major Items in the Company Financial Statements
1. Accounts receivable
(1) Accounts receivable by type
Unit: RMB yuan
Closing balance Opening balance
Gross amount Allowance Gross amount Allowance
Type Allowanc Allowanc
Carrying Carrying
Percentag e Percentag e
Amount Amount amount Amount Amount amount
e percentag e percentag
e e
Accounts
receivable
for which
the 3,030,944.4 3,030,944.4
3,030,944.40 1.55% 100.00% 0.00 3,030,944.40 1.89% 100.00%
allowances 0 0
are
established
individually
Of which:
Accounts
receivable
for which
the 3,030,944.4 3,030,944.4
3,030,944.40 1.55% 100.00% 0.00 3,030,944.40 1.89% 100.00%
allowances 0 0
are
established
individually
Accounts
receivable
192,269,270.0 3,143,604.0 189,125,665.9 157,140,503.6 3,623,064.7 153,517,438.9
for which 98.45% 1.64% 98.11% 2.31%
3 8 5 5 5 0
the
allowances
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
are
established
by group
Of which:
Accounts
receivable
for which
the
allowances
are 192,269,270.0 3,143,604.0 189,125,665.9 157,140,503.6 3,623,064.7 153,517,438.9
98.45% 1.64% 98.11% 2.31%
established 3 8 5 5 5 0
by group
with similar
credit risk
characteristi
cs
195,300,214.4 6,174,548.4 189,125,665.9 160,171,448.0 6,654,009.1 153,517,438.9
Total 100.00% 3.16% 100.00% 4.15%
3 8 5 5 5 0
Accounts receivable for which the allowances are established individually: Accounts receivable for which the allowances are
established individually
Unit: RMB yuan
Closing balance
Entity
Gross amount Allowance Allowance percentage Reason for allowance
Customer’s inability to
Customer 1 981,949.40 981,949.40 100.00% settle the amount due
Customer’s inability to
Customer 2 641,600.00 641,600.00 100.00% settle the amount due
Customer’s inability to
Customer 3 608,800.00 608,800.00 100.00% settle the amount due
Customer’s inability to
Customer 4 515,595.00 515,595.00 100.00% settle the amount due
Customer’s inability to
Customer 5 283,000.00 283,000.00 100.00% settle the amount due
Total 3,030,944.40 3,030,944.40 -- --
Accounts receivable for which the allowances are established by group: Accounts receivable for which the allowances are
established by group with similar credit risk characteristics
Unit: RMB yuan
Closing balance
Item
Gross amount Allowance Allowance percentage
Within 1 year (inclusive) 154,812,720.65 1,052,155.08 0.68%
1-2 years (including 2 years) 31,747,902.46 402,351.62 1.27%
2-3 years (including 3 years) 3,130,373.80 76,144.69 2.43%
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
3-4 years (including 4 years) 1,351,713.66 386,489.11 28.59%
4-5 years (including 5 years) 225,703.06 225,607.18 99.96%
Over 5 years 1,000,856.40 1,000,856.40 100.00%
Total 192,269,270.03 3,143,604.08 --
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss, please dis close
allowance information as other receivables.
□ Applicable √ Not applicable
By aging:
Unit: RMB yuan
Aging Closing balance
Within 1 year (inclusive) 155,082,156.42
1-2 years 31,747,902.46
2-3 years 3,130,373.80
Over 3 years 5,339,781.75
3-4 years 2,333,663.06
4-5 years 741,298.06
Over 5 years 2,264,820.63
Total 195,300,214.43
(2) Allowances established or reversed in the current period
Allowances in the current period:
Unit: RMB yuan
Change in the current period
Type Opening balance Closing balance
Established Reversed Written off Others
Allowances for
doubtful accounts 6,654,009.15 222,665.46 736,786.53 -34,660.40 0.00 6,174,548.48
receivable
Total 6,654,009.15 222,665.46 736,786.53 -34,660.40 0.00 6,174,548.48
Significant allowances that were withdrawn or reversed in the current period: Not applicable.
(3) Accounts receivable written off in the current period
Unit: RMB yuan
Item Amount written off
Accounts receivable written off -34,660.40
Significant accounts receivable written off: Not applicable.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(4) Top five entities with respect to accounts receivable
Unit: RMB yuan
Closing balance of accounts As a % of the closing balance of
Entity Closing balance of allowances
receivable total accounts receivable
Customer 1 89,348,333.81 45.75%
Customer 2 52,561,541.16 26.91%
Customer 3 9,226,000.00 4.72% 171,603.60
Customer 4 4,039,860.28 2.07%
Customer 5 3,006,897.87 1.54%
Total 158,182,633.12 80.99%
(5) Accounts receivable derecognized due to transfer of financial assets
Not applicable.
(6) Assets and liabilities arising from continuing to involve in accounts receivable upon transfer
Not applicable.
2. Other receivables
Unit: RMB yuan
Item Closing balance Opening balance
Dividends receivable 40,000,000.00
Other receivables 442,548,476.35 28,388,543.22
Total 442,548,476.35 68,388,543.22
(1) Interest receivable
1) Interest receivable by type
Not applicable.
2) Substantial interest overdue
Not applicable.
3) Allowances
□ Applicable √ Not applicable
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
(2) Dividends receivable
1) Dividends receivable by type
Unit: RMB yuan
Item (or investee) Closing balance Opening balance
Parsun Power 40,000,000.00
Total 40,000,000.00
2) Substantial dividends receivable over 1 year
Not applicable.
3) Allowances
□ Applicable √ Not applicable
(3) Other receivables
1) Other receivables by nature
Unit: RMB yuan
Nature Closing gross amount Opening gross amount
Internal transactions with related parties 335,006,048.32 23,381,677.83
Amount for transfer of equity investments 100,000,000.00
Prepaid service charges 2,663,309.52
Security deposits 1,403,495.96 1,818,495.96
Performance compensation 500,000.00 500,000.00
Export tax refunds 1,333,888.81
Employee loans and petty cash 770,233.24 806,740.89
Others 4,689,834.56 373,343.56
Total 443,703,500.89 29,543,567.76
2) Allowances
Unit: RMB yuan
Stage 1 Stage 2 Stage 3
Lifetime expected credit Lifetime expected credit
Allowances 12-month expected Total
loss (without credit loss (with credit
credit loss
impairment) impairment)
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
Balance as at 1 January
655,024.54 500,000.00 1,155,024.54
2021
Balance as at 1 January
2021 in the current —— —— —— ——
period
Balance as at 30 June
655,024.54 500,000.00 1,155,024.54
2021
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
By aging:
Unit: RMB yuan
Aging Closing balance
Within 1 year (inclusive) 440,806,485.21
1-2 years 325,080.50
2-3 years 42,765.32
Over 3 years 2,529,169.86
3-4 years 1,654,154.95
4-5 years 277,792.99
Over 5 years 597,221.92
Total 443,703,500.89
3) Allowances established or reversed in the current period
Allowances for doubtful other receivables in the current period:
Unit: RMB yuan
Change in the current period
Type Opening balance Closing balance
Established Reversed Written off Others
Allowances for
doubtful other 1,155,024.54 1,155,024.54
receivables
Total 1,155,024.54 1,155,024.54
Significant allowances that were withdrawn or reversed in the current period: Not applicable.
4) Other receivables written off in the current period
Not applicable.
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
5) Top five entities with respect to other receivables
Unit: RMB yuan
Closing balance of
As a % of the closing
Nature of other allowances for
Entity Closing balance Aging balance of total other
receivable doubtful other
receivables
receivables
Entity 1 Current account 335,350,093.71 Within 1 year 75.38%
Amount for transfer
Entity 2 of equity 30,000,000.00 Within 1 year 6.74%
investments
Amount for transfer
Entity 3 of equity 30,000,000.00 Within 1 year 6.74%
investments
Amount for transfer
Entity 4 of equity 20,000,000.00 Within 1 year 4.50%
investments
Amount for transfer
Entity 5 of equity 20,000,000.00 Within 1 year 4.50%
investments
Total -- 435,350,093.71 -- 97.86%
6) Other receivables associated with government grants
Not applicable.
7) Other receivables derecognized due to transfer of financial assets
Not applicable.
8) Assets and liabilities arising from continuing to involve in other receivables upon transfer
Not applicable.
3. Long-term equity investments
Unit: RMB yuan
Closing balance Opening balance
Item Impairment Impairment
Gross amount Carrying amount Gross amount Carrying amount
allowance allowance
Investments in 511,878,126.30 45,570,551.84 466,307,574.46 455,749,822.24 61,855,054.35 393,894,767.89
181
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
subsidiaries
Investments in
joint ventures and 72,149,298.35 72,149,298.35 70,900,088.92 70,900,088.92
associates
Total 584,027,424.65 45,570,551.84 538,456,872.81 526,649,911.16 61,855,054.35 464,794,856.81
(1) Investments in subsidiaries
Unit: RMB yuan
Opening balance Change in the current period Closing balance Closing balance
Investee (carrying Additional Reduction in Impairment (carrying of impairment
Others
amount) investment investment allowance amount) allowance
Dongfang
1,856,010.00 1,856,010.00
Precision (HK)
Dongfang
Precision 307,666.80 307,666.80
(Netherland)
Fosber Asia 16,738,279.20 36,121,968.12 52,860,247.32
Shunyi
Investment
350,089,349.55 79,993,664.06 16,284,502.51 286,380,188.00 45,570,551.84
(inclusive of
Parsun Power)
Yinglian Digital 21,903,462.34 21,903,462.34
Dongfang
3,000,000.00 3,000,000.00
Digicom
Yineng
100,000,000.00 100,000,000.00
Investment
Total 393,894,767.89 136,121,968.12 79,993,664.06 16,284,502.51 466,307,574.46 45,570,551.84
(2) Investments in joint ventures and associates
Unit: RMB yuan
Change in the current period Closing
Return on balance
Opening Declared Closing
Additio Reductio investment Adjustment Other of
Investe balance cash Impairme balance
nal n in recognized to other equity Other impairm
e (carrying dividend nt (carrying
investm investme using the comprehens change s ent
amount) s or allowance amount)
ent nt equity ive income s allowanc
profit
method e
1. Joint ventures
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
2. Associates
Jaten
70,900,088.92 1,249,209.43 72,149,298.35
Robot
Subtot
70,900,088.92 1,249,209.43 72,149,298.35
al
Total 70,900,088.92 1,249,209.43 72,149,298.35
(3) Other information
4. Operating revenue and costs
Unit: RMB yuan
H1 2021 H1 2020
Item
Revenue Costs Revenue Costs
Principal operations 192,965,012.06 121,408,712.13 154,538,552.09 93,837,630.90
Other operations 47,118,141.54 874,365.90 5,103,195.85 857,589.41
Total 240,083,153.60 122,283,078.03 159,641,747.94 94,695,220.31
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of income corresponding to performance obligations that had been contracted but
not yet performed or fulfilled was RMB19,270,375.20.
5. Investment income
Unit: RMB yuan
Item H1 2021 H1 2020
Income from long-term equity investments
18,992,000.00 18,868,681.95
measured at cost method
Income from long-term equity investments
1,249,209.43 23,671.37
measured at equity method
Income from the disposal of long-term
36,290,838.45
equity investments
Income from financial assets held for trading 9,559,565.86
Income from the disposal of financial assets
32,601,213.26
held for trading
Total 66,091,613.74 51,493,566.58
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Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
6. Other information
XVIII. Supple mentary Information
1. Schedule of exceptional gains and losses in the current period
√ Applicable □ Not applicable
Unit: RMB yuan
Item Amount Note
Gain or loss on disposal of non-current
244,619.17
assets
Government grants through profit or loss
(exclusive of government grants given in the
Company’s ordinary course of business at 6,712,327.65
fixed quotas or amounts as per the
government’s uniform standards)
Gain or loss on fair-value changes on
held-for-trading and derivative financial
assets and liabilities & income from disposal
of held-for-trading and derivative financial
31,537,269.94
assets and liabilities and other debt
investments (exclusive of the effective
portion of hedges that arise in the
Company’s ordinary course of business)
Non-operating income and expenses other
-24,078.31
than the above
Less: Income tax effects 2,960,044.59
Non-controlling interests effects (net
415,405.96
of tax)
Total 35,094,687.90 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public —Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS
Profit of the Reporting Period Weighted average ROE Diluted EPS
Basic EPS (RMB/share)
(RMB/share)
Net profit attributable to ordinary 4.72% 0.14 0.14
184
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company 3.85% 0.11 0.11
before exceptional gains and losses
185
