Guangdong Dongfang Precision Science & Technology Co., Ltd.
Semi-Annual Report 2022
Date of Disclosure: 27 July 2022
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 management 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.
All directors of the Company attended in person the board meeting for the approval of this
Report.
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.
2 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 7
Part III Management Discussion and Analysis ............................................................................. 11
Part IV Corporate Governance ...................................................................................................... 64
Part V Environmental and Social Responsibilities ....................................................................... 68
Part VI Significant Events ............................................................................................................... 70
Part VII Share Changes and Shareholder Information ............................................................... 77
Part VIII Preference Shares ............................................................................................................ 85
Part IX Corporate Bonds ................................................................................................................ 86
Part X Financial Report .................................................................................................................. 87
3 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 2022 Semi-Annual Report carrying the signature of the legal representative.
4. The documents above are lodged in the Securities Department of the Company, 25/F, Hisense Southern
Building, 1777 Chuangye Road, Nanshan District, Shenzhen City, Guangdong Province, China.
4 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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.
Qcorr QuantumCorrugated S.r.l.
Dongfang Precision (Europe)/EDF EDF Europe S.r.l.
Dongfang Precision (Netherland) Dong Fang Precision (Netherland) Cooperatief U.A.
Dongfang Precision (HK) Dong Fang Precision (HK) Limited
Shenzhen Wonder Shenzhen Wonder Printing System Co., Ltd.
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.
Yineng Investment 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.
5 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 pre-regulator, 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 stand-
Pre-printing and post-printing intelligent automatic
alone products and can provide functions related to pre-printing and post-printing
packaging machinery
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 engine
General utility small gasoline motors 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’0,000
of Renminbi
The “Reporting Period” or “Current Period” The period from 1 January 2022 to 30 June 2022
6 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 Feng Jia 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 2021 Annual report.
7 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 2021 Annual report.
3. Other relevant information
Whether other relevant information has changed in the reporting period
□ Applicable √ Not applicable
IV Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2022H1 2021H1 change (%)
Operating revenue (RMB yuan) 1,535,615,634.26 1,400,558,964.18 9.64%
Net profit attributable to the listed
148,199,917.83 191,117,520.46 -22.46%
company’s shareholders (RMB yuan)
Net profit attributable to the listed
company’s shareholders before exceptional 119,896,025.29 156,022,832.56 -23.15%
gains and losses (RMB yuan)
Net cash generated from/used in operating
152,250,706.73 206,023,828.25 -26.10%
activities (RMB yuan)
Basic earnings per share (RMB yuan /share) 0.12 0.14 -14.29%
Diluted earnings per share (RMB yuan
0.12 0.14 -14.29%
/share)
Weighted average return on equity (%) 4.08% 4.72% -0.64%
30 June 2022 30 June 2021 Change (%)
Total assets (RMB yuan) 6,498,246,817.74 6,357,168,835.19 2.22%
Equity attributable to the listed company’s
3,643,188,598.43 3,681,970,298.39 -1.05%
shareholders (RMB yuan)
8 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 2022H1 Note
Gain or loss on disposal of non-current assets (inclusive of -367,582.31
impairment allowance write-offs)
Government grants through profit or loss (exclusive of government 6,032,264.36
grants given in the Company’s ordinary course of business at fixed
quotas or amounts as per the government’s uniform standards)
Gain or loss on fair-value changes on held-for-trading and 23,425,024.84
derivative financial assets and liabilities & income from disposal of
held-for-trading and derivative financial 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 than the above 453,244.06
Less: Income tax effects 997,616.29
Non-controlling interests effects (net of tax) 241,442.12
Total 28,303,892.54 --
Details of other profit and loss items that meet the definition of non-recurring profit or loss.
□ Applicable √ Not applicable
No such cases in the Reporting Period.
9 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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.
10 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Part III Management Discussion and Analysis
I Principal Business of the Company in the Reporting Period
(I) Overview
During the reporting period, the Company engaged in no change in its principal business as compared to 2021. The
major business components are listed below.
[Table 1: Principal Businesses of Dongfang Precision]
Principal
Main functions and application fields
business/product
Corrugator lines. It is used for the production of corrugated boards of different specifications, and is the
core and key machinery for corrugated packaging production. They are widely used in large- and
medium-sized enterprises (primary and secondary plants) producing corrugated boards in the industrial
chain.
A corrugator line is composed of two process sections, namely wet-end equipment, and dry-end
equipment, independent of each other. The former makes corrugated base paper into three-layer, five-
layer and seven-layer corrugated boards, and the latter longitudinally cuts, presses, transversely cuts and
stacks corrugated boards as required by orders.
Intelligent corrugated
Corrugated box printing and packaging machinery. It is used to produce and process corrugated boards
packaging machinery
into corrugated boxes of different specifications as required by customers, and it includes such processes
as corrugated paper feeding, printing, slotting, die cutting and box stitching. Corrugated box printing and
packaging machinery is composed of the corrugated box printing line, the corrugated box printing
machine and the supporting pre-printing and post-printing machines for the printing unit including the
paper feeding unit, slotting and die cutting unit, waste discharging unit, box pasting and stitching unit and
the counting and stacking unit. The printing and packaging machinery is the core of corrugated box
production, and is widely used by all kinds of enterprises (primary plants, secondary plants and tertiary
plants) that process and produce corrugated boxes in the corrugated packaging industry chain.
Corrugated packaging The Company has built an enterprise- and industry-level intelligent plant platform for customers in the
industry corrugated packaging industry to help the customers realize a digital and network-based equipment layer,
Intelligent plant connect business, cash, and information flows, and promote comprehensive digitalization of the production
solutions
and operation layer, as well as data-based reasonable management and decision-making, in order to promote
11 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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
Outboard power
boat to sail and can be applied to boats shorter than 24m in inland rivers, lakes, and coastal waters. They are
products
widely used in water recreation, fishing, water traffic, emergency rescue, shore landing and maritime patrol.
(II) Intelligent corrugated packaging machinery business
1. Overview of the intelligent corrugated packaging machinery business
The Company's core business is intelligent corrugated packaging machinery, in which it provides medium- and
large-sized enterprise customers in the global corrugated packaging industry with core and key production lines and
machines making up the production lines necessary for the corrugated packaging production and processing.
The Company has become a one-stop production line and machinery supplier with leading comprehensive
strength in the industry for corrugated packaging enterprise customers and provides machinery products for the
production and printing of corrugated boards and paper feeding/slotting/die cutting/waste discharging/pasting and
stitching/counting/stacking of corrugated boxes of corrugator plants and corrugated box plants.
12 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
[Figure 1 Relationship between Corrugated Packaging Production and Industrial Value Chain and the Company's Intelligent Corrugated Packaging Machinery
Products]
Intelligent high-speed corrugator lines
Corrugated base paper
Kraft paper High-precision corrugator lines
Corrugator
Corrugated box printing and packaging lines (top printing fixed type)
Corrugated boxes
Corrugated box printing and packaging lines (bottom printing open-close type)
13 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
2. Main products in intelligent corrugated packaging machinery business
(1) Corrugator lines
The Company's corrugator line business is mainly operated by the wholly owned subsidiary Fosber Group (consisting of Fosber Italy, Fosber America, QCorr,
Tirua Group, etc.) and the holding subsidiary Fosber Asia.
The subsidiary Fosber Group owns S-Line, C-Line and Quantum-Line products, and its main customer groups are in Europe, North America, and Latin America.
The subsidiary Fosber Asia owns Pro-Line and E-Line products, and its main customer groups are in China, Southeast Asia, and South Asia.
The Company's middle- and high-end corrugator line products are ahead of those of domestic brands of enterprises of the same type in overall performance
including velocity, width, intelligence, precision, and stability, and run stably and are provided with good technical support, being greatly competitive in the global
industry market.
(2) Corrugated box printing and packaging lines
The Company's corrugated box printing and packaging line business is mainly operated by Dongfang Precision (China), Dongfang Precision (Europe) and
Shenzhen Wonder.
Dongfang Precision (China) owns integrated corrugated box printing and packaging line products including Dongfang Star I top printing fixed type FFG inline,
Dongfang Star II top printing open-close type FFG inline, Super Star I bottom printing die cutter stripper vacuum stacker converting line, Super Star II bottom printing
open-close type FFG inline and Super Star III bottom printing open-close type/FFG & stitcher line, covering different types and specifications as fixed type/open-close
type and top printing/bottom printing. Besides, Dongfang Precision (China) also sells the main assemblies of the integrated line products up to dozens of different
specifications, as well as corrugated box printing and packaging machinery products of different market positioning. Its integrated line products and single machine
products are marketed in over 30 countries and regions in Europe, America, Asia, Africa, Latin America, and Oceania.
Dongfang Precision (Europe) owns high-end integrated corrugated box printing and packaging lines including FD quickset top printing FFG inline and HGL
14 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
quickset bottom printing FFG inline and quickset bottom printing FFG/die cutter stripper line and sells them in the European market. These lines can feed paper without
crushing and be separately controlled by the servo, is fully automatic, and is capable of high-resolution printing. Besides, it also sells pre-printing and post-printing
machines of different specifications that are applicable to integrated line products, including paper feeders, waste dischargers, intelligent stackers, and folder gluer.
Shenzhen Wonder is a pioneer and leader among the Chinese brands of digital printing machinery in the corrugated packaging industry. It is one of the several
enterprises worldwide that has demonstrated its leadership in applying the high-speed inkjet printing technology to corrugated packaging, and that specializes in
producing the printing machinery for corrugated packaging based on the Single Pass digital printing technology.
After years of development, Shenzhen Wonder has owned the Multi Pass scanning digital printers applicable to small batch printing of corrugated boards and the
Single Pass high-speed digital printers applicable to the printing of the corrugated boards of various specifications and to the pre-printing of the base paper. Additionally,
it has formed a complete digital printing machinery matrix that covers multiple application modes and scenarios, ranging from Multi Pass scanning digital printers to
Single Pass high-speed direct-inkjet digital printers, from post-printing to pre-printing, from dye ink, pigment ink to UV inks, from cattle paperboard to coated board,
from single-sheet printing to seamless change of variable data, from stand-alone printing to ERP-supported printing. This has enabled Shenzhen Wonder to provide a
full range of digital printing solutions for corrugated board packaging to small, medium, and large customers and to export its products to America and Europe, the
Middle East, Latin America, Southeast Asia and elsewhere. Currently, Shenzhen Wonder occupies a market stock of more than 1,300 units in more than 80 countries
worldwide.
Meanwhile, Shenzhen Wonder, with its profound exploration of digital printing of packaging and a good reputation in the industry, has created the digital printing
machinery for advertising, home decoration, building materials and other fields, and the customized high-speed digital printing machinery such as flatbed and roll-to-
roll printers. Materials that are applicable to flatbed printers include aluminum gusset, glass, ceramic tile, metal plate, acrylic plate, and pp plate sheet. Materials that
are applicable to roll-to-roll printers include corrugated base paper, removable stickers, print cloth, PVC color film, decorative paper, and metal coils.
[Table 2 Main Product Matrix of the Intelligent Corrugated Packaging Machinery Business of Dongfang Precision - Corrugator Lines]
15 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Product type Brand Product image Main characteristics
Width: 2.5m to 2.8m;
Velocity: 250 to 470m/min
Pro/Care, Pro/Quality, etc.
Industrial Production
Information System 4.0
Width: 1.8m to 2.5m.
Innovation
Compact body and high
flexibility
More suitable to produce light
corrugated boards
Corrugator lines
Width: 2.2m to 2.8m.
Velocity: 180 to 320m/min
The world's top three
professional suppliers of
corrugating rolls and pressure
rolls, with leading processing
and tungsten carbide processing
technologies
16 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
[Table 3 Main Product Matrix of the Intelligent Corrugated Packaging Machinery Business of Dongfang Precision - Corrugated Box Printing and Packaging
Lines]
Product type Brand Product image Main characteristics
Top printing fixed type
Dongfang Star I top printing fixed type FFG inline Full servo control
Model change without
suspension
2min quick order change
Energy-saving, efficient and
intelligent
Dongfang Star II top printing open-close type FFG inline
Top printing open-close type
Servo motor control
Require only 2 to 3 operators
for one integrated line
Integrated
corrugated box
Efficient, stable, thorough
printing and
cleaning
packaging lines
Super Star I bottom printing die cutter stripper vacuum stacker converting line
Accurate counting and
automatic stacking
Suitable for special-shaped
boxes, machine-packed
boxes, and pre-printed boxes,
17 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Product type Brand Product image Main characteristics
and can cut dies by
continuous clicks once after
being powered on, which
solves the industry pain point
Require only 2 to 3 operators
for one integrated line
A professional die cutter FFG
line
Super Star II bottom printing open-close type FFG inline Suitable for efficient
production of boxes requiring
slotting or die cutting
Servo motor control
Require only 2 to 3 operators
for one integrated line
A well-established bottom
printing FFG & stitcher
Super Star III bottom printing open-close type/FFG & stitcher line All-in-one control and easy
operation
One machine for multiple
Integrated purposes supporting order
corrugated box changes
printing and Fewer processes and lower
packaging lines labor costs
18 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Product type Brand Product image Main characteristics
High-end bottom printing
fixed type line
Driven by spindle servo
Quick order change
Complete pre-printing and
post-printing supporting units
High-end bottom printing
open-close type line
Servo motor control
Require only 2 to 3 operators
for one integrated line
WD200++SINGLE-PASS Industrial Grade High-Speed Corrugated Board Digital Printing Line Industrial printing,
benchmark accuracy 1200
DPI
Printing speed 150m/min
Support 8-color printing
Wide format can be
customized
19 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Product type Brand Product image Main characteristics
MULTI PASS-SINGLE PASS Digital Printing All-In-One Machine Combines Multi Pass high
precision scanning and Single
Pass high speed printing with
two different digital printing
methods in one
Reduce equipment investment
capital, save space, labor,
maintenance, and other costs,
greatly improve production
efficiency
20 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
3. Business model of intelligent corrugated packaging machinery business
A. R&D model
Both the corrugator line business represented by the subsidiaries Fosber Group and Fosber Asia and the
corrugated box printing and packaging machinery business represented by Dongfang Precision (China), Dongfang
Precision (Europe) and Shenzhen Wonder are equipped work industry-leading independent design and R&D
capabilities.
The Company keeps building a high-level R&D innovation management mechanism and has an R&D team
composed of industry-leading experts, and secure the leading position of its technology in the industry with long-
term and short-term product R&D plans, market-oriented R&D mechanism and refined R&D talent incentive
policies.
B. Procurement and production model
The Company purchases steel plates, metal components and electric components from external suppliers, while
producing core machining components and corrugating rolls by itself.
It produces most of the machinery products according to orders, and purchases raw materials from suppliers,
compiles annual, quarterly, and monthly production plans and reasonably arranges production according to sales
contracts and raw materials on hand only after receiving customers' orders and requiring customers to pay part of
the down payment. In production and operation management, the Company promotes "lean production" to
accurately control BOM costs and manufacturing costs and continuously improve operational efficiency.
In general cases, orders of corrugator lines will be delivered in 4 to 6 months, and orders of corrugated box
printing and packaging machinery will be delivered in 2 to 3 months.
C. Marketing model
In terms of the marketing method, the Company sells products through direct selling and distribution. In the
domestic market, the Company sells products mainly through direct selling, as well as a small amount of distribution.
In overseas markets, the subsidiaries Fosber Group and Fosber Asia sell mainly through direct selling and Dongfang
Precision (China), Dongfang Precision (Europe) and Shenzhen Wonder sell mainly through agency distribution in
some overseas markets.
Direct selling allows the Company to directly face customers to ensure accurate demand information, prompt
information transmission and information feedback to the Company's R&D and production departments, so that
21 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
customers can be timely provided with overall solutions. Due to the complexity of products, the Company has an
outstanding after sales service team that is responsible for on-site installation, commissioning, training and after
sales services, which can provide 7*24h prompt response and support as required by customers.
In terms of the types of products being sold, the Company sells production lines, single machines,
accessories, software, and services. Integrated lines and single machines are sold only once, and the amount of each
sale is large. Accessories, software, and services are sold multiple times during the lifecycle of machines.
In the industry market, the continuously increasing holding of the Company's machinery boosts ceaseless sales
of the Company's accessories, software and services, and high-quality technical support and services drives the sales
of production lines and machines, which is fully evidenced by the high re-purchase rate of the Company's middle-
and high-end machinery products, so the two support and facilitate each other.
In terms of the settlement method of sales payment, the Company enjoys a high brand awareness and
superior bargain power in the industry, so it collects down payment in advance and payment by stages for the sales
of corrugator lines and corrugated box printing and packaging machinery products. In general cases, 80% to 90%
of the sales payment can be collected upon the delivery of products.
(III) Overall solution business for intelligent plants in the corrugated packaging industry
Dongfang Digicom, established in 2020, is the key carrier of the implementation of the Group's "digitalization
and intellectualization strategy". Adhering to the purpose and mission of "making the industry more intelligent and
manufacturing simpler" and with the vision of "to become a world-leading supplier of overall solutions of intelligent
plants and industrial Internet services in the packaging industry", it is specialized in building an enterprise-level and
industry-level industrial Internet platform for the corrugated packaging industry that integrates new information
technologies including IoT, cloud computing, big data, 5G and AI.
Aiming at the current situation that most domestic corrugated packaging enterprises are poorly capable of
production resources integration and in labor shortage, have unreasonable workshop layout and have a large room
for production efficiency improvement, the intelligent logistics business team of Dongfang Digicom provides
corrugated packaging enterprises in China with tailor-made intelligent logistics solutions for intelligent plants based
on years of profound experience in global and domestic industry markets and ERP, APS, WMS/WC and MES
technologies and in combination with advanced international technical concepts and the distinctive characteristics
of the carton packaging market in China.
The Company enjoys a whole-industrial-chain layout in the corrugated packaging machinery sector, and the
22 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
most complete and rich product base in the industry. With nearly 30 years of profound experience in Know-How in
the corrugated packaging machinery sector, it is the firm foundation and solid support for Dongfang Digicom. With
an unswerving strategic focus, the Company continues resources input and import of talents specialized in industrial
Internet and has developed the unique and core technical R&D force of Dongfang Digicom to output solutions with
completely independent intellectual property rights.
Figure 2 Dongfang Digicom's Overall Solutions for Intelligent Plants in the Corrugated Packaging Industry
Intelligent industry
Supply chain Business Business Second-hand
Online mall machinery market
finance synergy operation
Intelligent Decision-making Operation analysis Abnormality monitoring Visualized (Web/app...) Energy monitoring
operation analysis and handling
Intelligent Design and manufacturing integration Network-based synergetic manufacturing Quality control Cost management
plant
Intelligent scheduling Intelligent dispatching Intelligent collection Smart monitoring
Printer production management
Intelligent
manufacturing
system
Accessory management Basic data Order plan
management
Production Equipment
Data Integrated management management
Data warehouse Data cleansing Real-time Data exchange Data modeling Algorithm
middle computing channel analysis
office Quality control Report management
Tool Low-level code Procedure guide Report engine Application Basic services Customized
platform development integration development
IoT Hardware integration platform Edge computing
platform
Printer Flat-pressing FFG & stitcher Corrugator Other Printer Flat-pressing FFG & stitcher Corrugator Other Printer Flat-pressing FFG & stitcher Corrugator Other
flat die cutter lines machinery flat die cutter lines machinery flat die cutter lines machinery
Plant 1 Plant 1 Plant 1
23 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
[Figure 3 Application Model of the Overall Solution Business for Intelligent Plants in the Corrugated Packaging Industry]
DFDS
platform
(data
application)
APP Large screen dashboard Data report
Bog data Data processing Data analysis
Data cleansing Data storage
platform
Fast moving consumer goods
Pharmaceuticals industry
Equipment access Data collection Data storage Rules Engine
IOT
Electronics industry
Appliance industry
Other industries
Light industry
Border gateway (edge acquisition terminal + intelligent sensing terminal)
Corrugated packaging enterprises
Internet of Machines Internet of Internet of
Things Persons
Equipment
Smart Smart Intelligent
Printer Flat-pressing flat die FFG & stitcher Corrugator lines Visual sensor for RFID/bar Field
cutter inspection electric water environmental code tag operators
meter meter monitoring
Overall solution for intelligent corrugated packaging plants
End-market application
Whole-plant intelligent logistics
24 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
(IV) Outboard power product business
The subsidiary Parsun Power mainly engages in the design, R&D, production, and marketing of outboard
motors, and is committed to becoming a world-class outboard power supplier. Parsun Power is the leading enterprise
in the outboard motor industry in China and enjoyed the first market share in the industry from 2018 to 2020. In
2021, the sales volume of outboard power products of Parsun Power reached 75,500 units, accounting for 11.11%
of the global forecast sales volume of small and medium horsepower outboards power products.
1. Industry situation and market position of Parsun Power
Parsun Power falls under the outboard motor industry in the marine auxiliary equipment industry. Outboard
motors are the key equipment for small- and medium-sized ships, and are widely used in water recreation, fishing,
water traffic, emergency rescue, shore landing and maritime patrol, as shown below:
[Table 4 Fields and Scenarios of the Application of Outboard Motors]
Field of
Specific scenario Legend
application
Recreational fishing,
Recreational recreational sailing, and
recreational water sports
Fishing, water traffic and
Commercial
waterway maintenance
25 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Field of
Specific scenario Legend
application
Emergency rescue and
Official and maritime patrol
military Beach landing and water
reconnaissance
According to the report by Global Market Insights Research Private Limited, the size of the global outboard
motor market in 2020 was USD9,105 million, which is expected to reach USD13,191 million by 2027, with a
compound annual growth rate of 5.04% from 2021 to 2027. In 2020, the size of the outboard motor market in China
was USD228 million, which is expected to reach USD424 million by 2027, with a compound annual growth rate of
8.91% from 2021 to 2027, significantly higher than that 5.04% of the global market.
Worldwide, the outboard motor industry is dominated by Japanese and American brands, including Yamaha,
Japan (an outboard motor brand under Yamaha Motor) and Mercury, USA (an outboard motor brand under Bentfield
Group).
China has become one of the world's fastest-growing outboard motor markets owing to its rapid economic
growth and changing recreational habits. With the rise of domestic brands represented by Parsun Power, domestic
substitution has gradually become one of the mainstream trends in the development of the outboard motor industry
in China, and there is a broad market space for domestic substitution.
Meanwhile, with the increasing attention to global environmental protection and climate changes and the
implementation of China's carbon emission reduction and carbon neutrality policies, the global development trend
of outboard motor products toward medium- and high-horsepower and new-energy ones is more and more definitive.
After years of development, Parsun Power has become a leading enterprise among domestic outboard motor
brands, its market share has been ranking the first nationwide for years, and its products are being exported to tens
of countries and regions in Europe, Africa, Oceania, South America, North America, the Middle East, and Southeast
Asia. Parsun Power has realized a complete product line layout of "gasoline-diesel-electric power” and has been
marching toward high-horsepower diesel outboard motors and electric outboard motors with its years of experience
26 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
in products and technology and leading market share in the field of petrol outboard motors. In the future, it will
raise funds through a spin-off listing, and will improve its core competitiveness to become a professional supplier
of aquatic power products in China with global competitiveness.
2. Main products of Parsun Power in outboard motor business
Parsun Power provides outboard motor products from 2hp to 115hp. The output power of an outboard motor
increases with its horsepower, so as the size or velocity of the boat assembled to it.
By the source of engine power, outboard motor products of Parsun Power are divided into gasoline outboard
motors, electric outboard motors, and diesel outboard motors.
Gasoline outboard motors enjoy the most abundant specifications and varieties. Parsun Power has accumulated
years of industry experience in the field and has had several proprietary technologies and applied them to products.
In recent years, Parsun Power has developed medium- and high-horsepower outboard motors leading the
Chinese market and with domestic substitution characteristics, has achieved mass production of the maximum
115hp gasoline outboard motors, and has successfully broken the long-term monopoly by international well-known
brands in the 115hp sector. With stable and reliable quality of its 115hp gasoline outboard motors, Parsun Power
has won more and more product orders in Europe and China, contributing to domestic substitution of medium- and
high-horsepower outboard motors and the improvement of the global market share of domestic brands. After
successfully conquering the 115hp gasoline model, Parsun Power's R&D team marches toward higher-horsepower
models and strives the make domestic-brand high-horsepower outboard motors take a place in the global
competition of the high-horsepower outboard motor market.
Electric outboard motors are powered by batteries. They convert electric power into kinetic power through
motors, and are characterized by zero emissions, low noise, and easy operation, and are mainly used in scenic spots
and other sectors requiring stricter environmental protection. Parsun Power's electric outboard motors are divided
into 7hp motors and 9.9hp motors, which are being sold in developed countries such as the United States.
Diesel outboard motors not only retain the characteristics of easy assembly, easy maintenance and easy
operation of gasoline outboard motors but also enjoy the advantages of fuel saving, lower emissions, greater torque
and being safer, more reliable, and easier for maintenance, which are mainly used in commercial transportation and
public law enforcement. Parsun Power now has diesel outboard motors and is selling the high-horsepower outboard
motors of 150hp to 300hp of OXE Marine (a Swedish brand) in the domestic market.
Parsun Power's outboard motor products have stable quality and reliable performance, and some of them enjoy
27 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
the comprehensive performance comparable to that of internationally well-known brands and emissions reaching
European and American standards. In the future, Parsun Power will focus on high-horsepower outboard motors,
enrich electric outboard motor production lines, continuously optimize the product structure of outboard motors,
and consolidate its leading position among domestic outboard motor manufacturers.
3. Business model of Parsun Power's outboard motor business
Parsun Power runs its outboard motor business through "Design and R&D + Production + Marketing". In terms
of sales model, Parsun Power gives priority to distribution, with direct selling as a supplement.
II Core Competitiveness Analysis
In the Reporting Period, the Company had no significant adverse changes in its core competitiveness. Analysis
of the Company's core competitiveness is as follows:
(I) Complete layout in the corrugated packaging machinery industry chain and the most complete and
richest product portfolio in the industry
Among enterprises of the same type in the domestic corrugated packaging machinery industry, Dongfang
Precision has the most complete and comprehensive industry chain layout, with its business covering almost all key
processes in the corrugated packaging production and processing business chain. A full-coverage layout in the
corrugated packaging production and processing value chain has been established.
Processes in the corrugated packaging production and processing value chain covered by the Company's
business units include:
1. Corrugator production:
Fosber Group, Fosber Asia and QuantumCorrugated are the business units of the Company engaging in it.
They serve large- and medium-sized enterprises in domestic and foreign corrugated board production and processing
industries, and supply middle- and high-end corrugator line products of different specifications, different types, and
different market positioning.
Fosber Group has middle- and high-end corrugator lines and leading industrial Internet technologies in the
front rank of the global industry market, and has corrugating roll production lines and high-speed corrugator lines
suitable for industrial digital printing, having a complete industrial layout in the core production line and machinery
sector in the field of corrugator production and processing.
Specifically, Tirua Group, a subsidiary of Fosber Group, is a time-honored, prestigious, and professional
28 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
corrugating roll supplier in Spain, and its corrugating roll products are one of the key components of corrugator
lines, and QCorr, another subsidiary of Fosber Group, has the independently developed Quantum high-speed
corrugator line that has the unique design fitting the embedding of industrial digital printing technology.
2. Corrugated box printing and packaging: Dongfang Precision (China), Dongfang Precision (Europe) and
Shenzhen Wonder are the business units of the Company engaging in it. They serve domestic and foreign corrugated
box production and processing industry markets, and supply middle- and integrated high-end corrugated box
printing and packaging lines and single machine products covering all units and all specifications of the production
lines. In terms of corrugated box printing and packaging machinery, Dongfang Precision's products are divided into
fixed type/open-close type, top printing/bottom printing and integrated line/single machine products and has the
riches product portfolio among domestic enterprises of the same type. In terms of digital printing, the digital printing
machine products of Shenzhen Wonder cover a wide range of application modes and scenarios, including Multi
Pass scanning and Single Pass high-speed direct-jet, post-printing and pre-printing, ink, and UV, etc., that have
formed a complete digital printing lines and machines product matrix and can provide a full range of digital printing
products for corrugated packaging for customers of all levels.
3. Overall solution for intelligent corrugated packaging plants: Dongfang Digicom is the business unit of
the Company engaging in it. It provides customers in the corrugated packaging production and processing industry
market with the overall solution for intelligent plants covering order management, production management, cost
analysis, intelligent decision-making, intelligent logistics and supply chain management and equipment
management, as well as the solution for intelligent whole-plant logistics.
With the full-coverage industry chain layout, the Company has the most complete and richest corrugated
packaging line and machinery product portfolio in the industry, making it capable of meeting the demands for
integrated line and single machine products of different market positioning, different customer types and dozens of
specifications and models, second to none in China.
29 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Figure 4 Business Divisions and Entities of Dongfang Precision
(II) Industry-leading technology level and capability of continuous R&D and innovation
The Company's overall R&D strength and technology level are at the forefront among domestic enterprises of
the same type. As of 30 June 2022, the Company was holding around 330 licensed patents at home and abroad. And
the Company has been awarded the Provincial Industrial Design Center of Guangdong and the Provincial
Demonstration Enterprise of Intellectual Property Right in Guangdong.
Its subsidiary Fosber Group is one of the two companies with the strongest comprehensive technical strength
in the field of high-speed and wide corrugator lines worldwide. Fosber's middle- and high-end corrugator lines are
internationally leading in the industry in velocity, width, precision, stability, reliability, failure rate and intelligence,
and its high-technology-content and high-quality machinery products and technical support services have won the
praise of domestic and foreign enterprise customers.
During design and R&D of high-end corrugator lines, Fosber Group proactively practices the industrial Internet
technology and applies sensors, VR, big data, and algorithms, and has launched the PRO information-based
intelligent production management system for corrugator lines with tens of years of Know-How experience in the
middle- and high-end corrugator line industry, realizing full automation and intelligence of the whole process of
corrugator production and processing. Through over 200 sensors in corrugator lines, it monitors the temperature,
humidity, heat, folds, and other data of corrugator lines in real time, and monitors the dashboard dynamically in the
production process. Through data-based production performance analysis and cost analysis, it helps customers
improve production efficiency. Through the self-diagnosis system, it identifies abnormal operations and sends alerts,
30 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
and searches solutions in the database and outputs the solutions automatically. Through the "big data analysis
system" module, it collects real-time data in the corrugator production process through sensors, outputs
recommended configuration parameters and improvements through algorithm analysis, and helps customers
improve the effectiveness of production process control.
Figure 5 How Fosber Group's PRO Information-based Intelligent Production Management System Works
The subsidiary Parsun Power is committed to independent R&D and innovation of China-made outboard
motors, and is a state-level "Little Giant" enterprise with specialties, refined management, unique technologies and
innovation, a national high-tech enterprise, the Provincial Outboard Motor Engineering and Technology Research
Institute of Jiangsu, a technology center recognized by Jiangsu Province, a leading enterprise in China's internal
combustion engine industry and a council member of the Small Gasoline Motor Branch of China Internal
Combustion Engine Industry Association. Its outboard motor products have won the Certificate for Industrialization
Demonstration Program under the National Torch Plan and honors including Innovative Products in Chinese
Machinery Industry, Products of Well-known Brands in Jiangsu, and Products of Well-known Brands in Suzhou.
Parsun Power has been developing in the outboard motor industry for over ten years and has had several China-
leading core technologies and accumulated rich scientifically innovative achievements after long-term R&D input
and technical accumulation. As at the end of the Reporting Period, it has got 57 licensed patents and won two second
prizes of the China Machinery Industry Science and Technology Award and is one of the main drafters of two
industry standards including Outboard Gasoline Engines- General Requirements (JB/T 11875-2014) and General
Technical Specification of Outboard Engine (CB/T 4505-2020). In 2021, Parsun Power successfully realized the
mass production of 115hp outboard motors, that with independent intellectual property rights, breaking the long-
standing monopoly of internationally well-known brands in the 115hp sector.
(III) Profound Know-How experience and experienced team in the industry
Dongfang Precision has an experienced team with profound Know-How experience in the industry, which has
31 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
20 years of experience in both global and domestic industry markets and has an in-depth understanding of the
Company's industrial layout, development planning, R&D approach, production operation, marketing, and team
management. The core management team has a broad vision, can promptly keep up with the general development
trend of the intelligent corrugated packaging machinery manufacturing industry, and can enable the Company to
achieve steady and sustainable development through forward-looking strategic planning and layout.
As an enterprise that practices the management model of professional manager team and attaches great
importance to authorization management, Dongfang Precision takes "a wealth of talents" and "cultural orientation"
as the basis of its corporate strategy and corporate culture, and develops its organizational capacity, improves the
Group's control over all business units and subsidiaries and integration of resources and assistance and aid, improves
the Group's overall operational efficiency and reduces the Group's operation cost and promotes the Company's
healthy and sustainable development by optimizing the organizational structure design, standardizing the
authorization and control system, implementing medium- and long-term incentives and further developing the
corporate culture.
(IV) High brand popularity and customer recognition in the industry worldwide
Dongfang Precision and Shenzhen Wonder corrugated box printing and packaging machinery, Fosber and
Quantum corrugator lines, Tirua corrugating rolls and Parsun outboard motors of the Company are enjoying
considerable brand recognition and industry influence at home and abroad.
The Company has become an influential enterprise in the industry, as evidenced by its honors like the "Top
500 Private Manufacturers of China", the "Champion in Single Aspect", and the "Leader in Industry Segment".
In the business segment of "intelligent corrugated packaging machinery", the Company has established good
partnerships with domestically leading enterprises in the corrugated packaging industry including Nine Dragons
Paper, Shanying Intl, Yuen Foong Yu, HXPP, MYS, XTL, Great Shengda, Forest Packing Co., Ltd., UCPS and
Zhengye International, and large international groups in the corrugated packaging industry 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,
large- and medium-sized packaging enterprises will need more solutions for intelligent plants as well as middle-
and high-end production lines and machinery. The Company has seized opportunities and formed a better
competitive edge by virtue of its stable business partnership during the above industry changes.
(V) Global layout of business assets
32 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
The Company mainly serves customers in the corrugated packaging industry worldwide, and has realized the
global layout of its business assets:
In Asia, the Company has three domestic R&D and production bases in Foshan, Suzhou, and Shenzhen, in
Europe, it has R&D and production bases in Lucca, Bologna and Milan, Italy, and Pamplona, Spain, and in North
America, it has a production base in Green Bay, Wisconsin, USA. With such a layout in the three continents, the
Company has formed a global marketing and service network.
An internationalized marketing and service network enables the Company to seize all opportunities in the
global industry market and to provide product machinery and technical services for customers in the industry in
over 100 countries and regions worldwide.
An internationalized product R&D, production and supply chain layout enables the Company to make prompt
responses worldwide and meet customer demands and is conducive to the Company's integration of global resources,
improvement of resource allocation efficiency, complement of advantages, reduction of the total cost and
improvement of the allocation efficiency, so that the Company can be generally competitive in the world when it is
operated as a group.
Figure 6 Global Layout of the Company's Business Assets and Marketing Network
(VI) Strong strategic control and integration of business segments
Since listing, the Company has been making full use of the platform of listed companies to carry out industrial
mergers and acquisitions of appropriate subject matters in the corrugated packaging machinery industry chain. The
Company attaches great importance to post-investment integration. Over the years, the Company has developed
strong strategic control and integration of its business segments through successful practices in acquiring target
companies in the corrugated packaging machinery industry chain and has accumulated rich experience in control
33 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
and integration.
Strategic control is the core capability that the Company relies on to manage its various business entities. After
years of practice, the Company adjusted the strategic development plans, business models, product mixes, market
strategies and core management teams of the target companies acquired with its in-depth understanding of the
industry, forward-looking foresight to the development trend of the industry, clear awareness of its strategic
development objectives and a well-established understanding of the capabilities and resources of all its business
entities, so that these companies can be energized for new growth and step on a new development stage.
In terms of post-investment integration, the Company has formulated the legal person governance
standardization policy, the "three-board" operation mechanism and the strategic and financial control system, and
implemented decentralized authorization management, complete audits, and management incentives, forming a set
of measures for integrated and effective post-investment control to secure the effective implementation of the
strategic plan.
In 2014, the Company acquired the shareholding right of Fosber Group, and took several effective measures
in the acquisition, helped Fosber Group adjust its strategic plan and business strategy and standardize the
authorization management system, and implemented the performance incentive policy and strengthened financial
control over the core management. Such measures have successfully stimulated Fosber Group's business vitality.
From 2015 to 2021, the compound annual growth rate of the operating revenue of Fosber Group was about 14%,
and the same of its net profit was 30%. In 2022H1, Fosber Italy, that’s the Fosber Group's main business unit, grew
revenue by more than 30% YoY and Fosber America grew revenue by more than 70% YoY, both recording the
highest H1 revenues in the five years since 2018 to date.
In 2015, the Company acquired the shareholding right of Parsun Power, helped Parsun Power streamline and
adjust its strategies, develop the new development roadmap, increase inputs in technology, products, and R&D,
strengthen the marketing force, and improve the efficiency of the supply chain and production. It also supported
Parsun Power to introduce excellent talents for a more powerful core team. These measures enabled Parsun Power
to realize continuous and stable growth. From 2017 to 2021, the compound annual growth rate of the operating
revenue of Parsun Power was about 20%. In 2022H1, Parsun Power's revenue increased by more than 25% YoY.
In 2019 and 2020, the Company acquired the relevant business assets of Tirua Group, a nearly century-old
corrugating roll manufacturer, and those of Agnati, an once splendent Italian corrugator line manufacturer. The
Company fully streamlined the development strategies, R&D systems, product sequences, marketing and team
34 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
building of these two companies, based on which it adjusted and optimized the business strategies and output
management, effectively stimulating the vitality of the two old European companies and the enthusiasm of their
manager teams.
Relying on its strong strategic control and integration of business segments, based on "mutual respect and
mutual trust" and with an open mind seeking common ground while putting aside differences, the Company
effectively integrated all its business entities and continuously released the synergy with the industry chain, and has
become a successful example among domestic private enterprises in integration after domestic and foreign industrial
mergers and acquisitions. The valuable experience and accumulation in industry chain mergers, acquisitions and
integrations lay a solid foundation and provide strong support for the Company to promote the implementation of
the five-year strategic planning and realize steady and sustainable development.
III Core Business Analysis
(I) Overview
The Russia-Ukraine conflict, the recurring COVID-19 pandemic, the interest rate increases by the Federal
Reserve of America and other factors in the first half of 2022 have raised the risk of global stagflation and
significantly increased the uncertainties. Under enormous internal and external pressures, China's economy has
displayed strong resilience. Thanks to the effects delivered by a range of robust and stable economic policies, China
has overcome the adverse impacts of the factors beyond expectations and achieved a YoY increase of 2.5% in GDP
in H1 2022.
The Company was also in face of complex and more challenging domestic and international market conditions
in H1 2022. Under the firm leadership of the Board of Directors and the management and through the hard work of
all employees, the Company bucked up its principal business and continued the trend toward steady growth that has
been lasting for years. In the Reporting Period, the Company recorded operating revenue of approximately
RMB1,536 million, up by 9.64% YoY, and a net profit attributable to its shareholders of approximately RMB148
million, down by 22.46% YoY.
(II) Analysis of the performance of the business divisions in the Reporting Period
1. The division of corrugator lines
35 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
The corrugator line division is an important component of the Company's core business, contributes to over
half of the Company's total revenue from principal business, and has been steadily growing for consecutive years.
From 2018 to 2021, the compound annual growth rate of the operating revenue from it was about 16%. This division
includes the wholly owned subsidiary Fosber Group (including Fosber Italy, Fosber America, QCorr and Tirua
Group) and the holding subsidiary Fosber Asia. Fosber Group, largely targeting the American and European markets,
is central to this division.
Fosber Group's businesses, assets and team members are in Europe and North America. Fosber Group and all
its subsidiaries adopt localized management and operation, and have their product design, development and
production and manufacturing in local regions in Europe and North America. Their products are corrugator lines
and corrugating rolls of different market positioning, which are eventually used for the production and processing
of corrugated packaging products of different models. Corrugated packages are rigid consumer goods in European
and American countries. The official introduction of the plastic ban in Europe in July 2021 further accelerated the
trend of "replacing plastics with paper" in the packaging industry of the European Union. The increase in the demand
for corrugated packaging products in these end markets will be conducive to the increase in the demand for
corrugator lines.
In H1 2022, Fosber Italy, a principal business unit (PBU) of Fosber Group, achieved operating revenue of
approximately EUR75 million and a combined value of new orders of approximately EUR158 million, representing
YoY increases of 34% and 67%, respectively. Fosber America, also a PBU of Fosber Group, recorded operating
revenue of approximately USD70 million and a combined value of new orders of approximately USD100 million,
up 72% and 97% year on year, respectively. In H1 2022, both Fosber Italy and Fosber America have achieved the
highest operating revenue and combined value of new orders for H1 in the five years since 2018. The number of
Fosber America's orders for integrated line products and single machine products grew dramatically by
approximately 165% year on year, with some orders scheduled for 2024. The real economy of the US in H1 2022
remained promising. According to the latest research data released by the research institute Mastercard Spending
Pulse on the retail market of the US in June, the total retail sales of consumer goods (excluding automobiles) for
June in the US climbed 9.5% year on year, and the online retail sales were approximately twice as many as those
for the same period in 2019. The end market boosted the market demand of the corrugated packaging machinery
industry. Fosber Group surpassed its main competitors in terms of sales volume and amount in the North American
market, fully displaying the competitiveness of the corrugator lines of Fosber in the high-end corrugator line market
36 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
of North America.
During the Reporting Period, Qcorr, a member enterprise of Fosber Group, sold its first 2.5-meter-wide
Quantum corrugator line, achieving a breakthrough in sales in the North American market. Meanwhile, the
introduction of the Quantum corrugator line into China was constantly in progress. Tirua Group, a member
enterprise of Fosber, achieved a significant increase in its number of corrugating roll-related orders during the
Reporting Period, approximately twice as many as that for H1 2021.
In H1 2022, the Russia-Ukraine conflict and the high inflation rates in Europe and the US increased the energy
and raw material costs in the European market, which resulted in a YoY rise in the manufacturing cost. The supply
tension of some parts postponed the order delivery date to some extent. All the above-mentioned factors have partly
slowed the profit growth of Fosber Group. Additionally, the euro depreciation was expedited in H1 2022. As the
recording currency of Fosber Group's financial statements is the euro, the decrease in the euro exchange rate has
influenced the consolidated financial statements to some extent.
The subsidiary Fosber Asia mainly serves China and Southeast Asia markets. Fosber Asia's Pro-Line
corrugator lines are tailor-made for the China market, with the import substitution rate of parts standing at around
90%. Making full use of China's supply chain advantages with the most complete industrial categories and the most
complete supporting facilities in the world, Fosber Asia can design and manufacture these corrugator lines
domestically, providing industrial customers with high-quality and high-end corrugator line products which are
made in China.
During the Reporting Period, Fosber Asia constantly expanded its foreign sale territories and entered the
Russian market for the first time. The combined value of Fosber Asia's new orders in foreign markets was
approximately twice as much as that for the same period in 2021. In terms of R&D, the projects of Fosber Asia for
the localization of internationally advanced, high-end corrugator lines and Quantum corrugator lines were in smooth
progress during the Reporting Period. Meanwhile, positive progress was achieved in the project for the localization
of corrugating rolls of Tirua.
Facing challenges arising from changes in the external environment and the market demand of the industry,
the Company responded proactively. Specifically, it adjusted the product and marketing strategies for the corrugator
line division, proactively grasped the new opportunities worldwide brought by the changes in the market
competition of the industry, and constantly improved and launched new products that could better solve the pain
points for customers of the industry. Besides, it deepened the internal integration of the corrugator line business and
37 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
improved quality and efficiency to enhance its market competitiveness.
2. The division of corrugated box printing and packaging lines
The division of corrugated box printing and packaging lines is the oldest business among the principal types
of business of the Company. By the end of the Reporting Period, this division is comprised of Dongfang Precision
(China), Dongfang Precision (Europe) and Shenzhen Wonder.
In H1 2022, Dongfang Precision (China) witnessed rapid growth in its export business. Thanks to the surge in
the market demand of foreign industries and intensified efforts in the direct sale and the creation of access to the
international market, the revenue of Dongfang Precision (China) from export grew by more than 60% year on year;
the combined value of new orders stood at approximately RMB290 million, up 43% year on year. Meanwhile,
Dongfang Precision (China) was granted another two invention patents and three patents for utility models, and
progress was achieved in the development and design of new models.
In June 2022, the Company completed the acquisition of Shenzhen Wonder. It obtained 51% of the shares and
a controlling stake in Shenzhen Wonder through the combination of the acceptance of equity transfer and capital
injection. Consequently, Shenzhen Wonder became one of the important members of the "division of corrugated
box printing and packaging lines".
The incorporation of Shenzhen Wonder into the division of corrugated box printing and packaging lines
significantly enhanced the Company's comprehensive strength in the field of digital printing of corrugated
packaging. Meanwhile, Shenzhen Wonder will be included in the Company's consolidated statements and will also
become a new driver to boost the results growth of the Company's division of corrugated box printing and packaging
lines. In H1 2022, the combined value of new orders of Shenzhen Wonder reached approximately RMB100 million.
So far, Shenzhen Wonder has had eight invention patents and 27 patents for utility models.
3. The division of outboard power products
In H1 2022, the subsidiary Parsun Power maintained the robust growth trend in its outboard motor business. It
achieved operating revenue of approximately RMB280 million, up 25% year on year, and the revenue from the
outboard motor business increased by more than 30% year on year.
The outboard motor business of Parsun Power has been benefiting from the constant growth in the demand for
outboard motors from water entertainment consumption in foreign markets and the trend of replacement with
domestic products in dedicated domestic markets. During the Reporting Period, Parsun Power's revenue from export
38 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
continued to grow rapidly, and that from the domestic market basically remained unchanged from the same period
last year. Parsun Power continued to increase its R&D investment and enrich the product matrix. The R&D of high
horsepower gasoline motors with 200 HPs and above and electric outboard motors was in smooth progress.
Meanwhile, Parsun Power filed applications for two invention patents and five patents for utility models. In terms
of production and operation, Parsun Power constantly tapped into the existing capacity potential, hit another record
high in the output value of outboard motors, improved the automation level of the production, and effectively
controlled the operational cost.
3. The division of overall solutions for intelligent corrugated packaging plants
As the undertaking unit of the Company's business of overall solutions for intelligent corrugated packaging
plants, in H1 of 2022, the subsidiary Dongfang Digicom successfully sold the solutions with independent intellectual
property rights and completed the installation, implementation, and commissioning of the solutions on the
production lines of potential customers. The solutions can be sold along with the Company's corrugated box printing
and packaging line machinery, to help customers of the downstream industry improve the automation level,
operational efficiency, and production quality of production lines.
During the Reporting Period, the product R&D of Dongfang Digicom was sped up. The applications for the
11 software copyrights, invention patents and patents for utility models submitted were processed. Besides,
Dongfang Digicom obtained five certificates of software copyrights and completed the development of more than
40 R&D projects in H1.
4. The epitaxial division
During the Reporting Period, the main progress of the Company's epitaxial development business is as follows:
(1) Equity investment in Shenzhen Wonder
During the Reporting Period, Dongfang Precision carried out a direct equity investment in Shenzhen Wonder
with its own funds and obtained 51% of the shares of Shenzhen Wonder. The total investment reached RMB173.8
million. Shenzhen Wonder completed the procedures for business information change and filing of this transaction
in June 2022. After the completion of the asset delivery and transfer, Shenzhen Wonder was included in the
consolidated statements of Dongfang Precision. For more details, please see the Voluntary Announcement on the
Equity Investment in Shenzhen Wonder released by the Company on 15 June 2022.
(2) Investment in Beijing Sinoscience Fullcryo Technology Co., Ltd.
39 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
During the Reporting Period, the wholly owned subsidiary Yineng Investment indirectly invested in Beijing
Sinoscience Fullcryo Technology Co., Ltd. (referred to as "Fullcryo" in this Report) and Sinoscience Fullcryo
(Zhongshan) Equipment Manufacturing Co., Ltd. by making a capital contribution to a limited partnership and
obtained non-controlling interests of the two companies.
Fullcryo is a high-tech enterprise founded by the Technical Institute of Physics and Chemistry, CAS. It focuses
on the strategic guarantee of national big science research projects, the independent and comprehensive
development and utilization of strategic helium resources and the development needs of the green hydrogen energy
industry. Based on the decades of the large-scale cryogenic R&D led by two generations of academicians of the
Technical Institute of Physics and Chemistry, CAS, and with the research achievements of the two phases of national
projects for key scientific machinery at the core, Fullcryo has attracted famous experts and scholars and marketing
teams at home and abroad and used the core technologies with a working temperature of 20K to 2K (-253°C to -
271°C) to provide large-scale cryogenic refrigeration machinery with liquid helium and liquid helium temperature
zones, hydrogen liquefaction machinery, LNG-BOG helium extraction machinery, advanced cryogenic machinery
for the separation and purification of rare gases (such as neon, helium, krypton and xenon), solutions for hydrogen
energy application systems, engineering of highly pure rare gases and industrial gases, and other services. Fullcryo
is a national supplier in China with independent intellectual property rights, whose services cover the design and
manufacturing of large-scale cryogenic refrigeration machinery, cryogenic system engineering, and industrial gas
provision. Being a subsidiary controlled by Fullcryo, Sinoscience Fullcryo (Zhongshan) Equipment Manufacturing
Co., Ltd. is the only advanced machinery manufacturer that owns independent intellectual property and technologies
for large-scale cryogenic machinery with a working temperature of below 20K (-253°C to -271°C). It is also the
only manufacturer and service provider worldwide that can simultaneously provide the non-standard customization,
leasing, and entrusted operation of large-scale cryogenic machinery with working temperatures of 4.2K (-269°C)
and 20K (-253°C).
As one of the limited partners of the partnership, Yineng Investment accounts for 94.86% of the total capital
contributions. Considering the partnership's agreements on investment orientation, investment decisions, operation
and management, income apportionment, and loss bearing, and the fact that Yineng Investment accounts for the
majority of the capital contributions to the partnership, the partnership is included in the consolidated statements of
Dongfang Precision as a "structured body controlled by the Company" from the perspective of commercial
substance and after complying with the Accounting Standard for Business Enterprises and referring to the
40 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
professional opinions of the independent auditor.
(3) Investment in Yuze Semiconductor (Yunnan) Co., Ltd.
During the Reporting Period, the wholly owned subsidiary Yineng Investment indirectly invested in Yuze
Semiconductor (Yunnan) Co., Ltd. (referred to as "Yunnan Yuze" in this Report) by making a capital contribution
to a limited partnership. Yunnan Yuze mainly engages in the manufacturing of photovoltaic silicon wafers. It is a
leading manufacturer of N-type photovoltaic silicon wafers and silicon rods. It has been exploring the R&D and
manufacturing of N-type single-crystal silicon wafers since 2019. With significant first-mover advantages in
technology and talent reserves as well as customer expansion, Yunnan Yuze has created a good image in the industry
as a professional supplier of N-type single-crystal silicon wafers.
As one of the limited partners of the partnership, Yineng Investment accounts for 39.37% of the total capital
contributions. By the agreement on the fund investment decisions in the partnership agreement, the limited partner
Yineng Investment does not participate in the operation of the Fund Investment Decision Committee and does not
have veto power over fund investment decisions. Considering the partnership's agreements on investment
orientation, investment decisions, operation and management, income apportionment, and loss bearing, and by the
related regulations in the Accounting Standard for Business Enterprises, the Company does not control funds, so
funds are not included in the consolidated statements of the Company. They will be presented under the "Other non-
current financial assets--Financial assets at fair value through profit or loss" item in the consolidated financial
statements.
(4) Impacts of the above-mentioned epitaxial business on the Company
The business purpose of Yineng Investment, the subsidiary, is to focus on the industries related to its principal
business and seek investment opportunities in high-end machinery manufacturing and other industries that the
country encourages to develop in the "14th Five-Year Plan" while carrying out industrial mergers and acquisitions
based on industries, assisted by capital, guided by its strategic planning, and driven by circulation. It aims to expand
the development space for the Company in emerging industries. It shares profits of the investees in the process of
their growth and development, thus boosting the Company’s overall profitability.
The aforesaid equity investments do not constitute related-party transactions or major assets restructuring and
exert no significant impacts on the Company's operating results or financial condition in the Reporting Period.
(III) Capital operation: The capabilities to create value and seek returns for shareholders were
improved
41 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
1. The application for the spin-off listing of the subsidiary Parsun Power on the ChiNext board has been
accepted by the Shenzhen Stock Exchange for review.
During the Reporting Period, the preliminary plan for the spin-off listing of the subsidiary Parsun Power on
the ChiNext board of the Shenzhen Stock Exchange was approved by the Company’s Board of Directors and general
meetings of shareholders. Parsun Power has filed the application materials to the Shenzhen Stock Exchange for its
initial public offering on the ChiNext board. It received in June 2022 from the Shenzhen Stock Exchange the
Notification on the Acceptance for Review of the Application Materials of Suzhou Parsun Power Machine Co., Ltd.
for Its Initial Public Offering on the ChiNext Board (SZSS [2022] No. 189).
2. The share repurchase moved on as scheduled.
During the Reporting Period, the Company carried on with the 2021 share repurchase plan. During the period
from October 2021 to 30 June 2022, the Company repurchased a total of approximately 106.6521 million shares (or
around 8.01% of the Company’s total share capital) through centralized bidding. With the highest trading price
being RMB6.30/share and the lowest being RMB3.59/share, the total amount paid was approximately RMB551
million (exclusive of transaction costs). The Company will carry forward the share repurchase plan and fulfil its
obligation of information disclosure in a timely manner as it does so.
According to the share repurchase plan, no lower than 80% of the repurchased shares will be retired to reduce
the Company's registered capital while no more than 20% will be used for equity incentives or employee stock
ownership plans.
3. Equity incentives were steadily promoted to stimulate the internal power
During the Reporting Period, the Company launched the 2022 Restricted Share Incentive Plan. In April 2022,
the first grant was completed, where 2,650,000 restricted shares were granted to seven key managerial, technological,
and business personnel. In June 2022, as the unlocking conditions were met for the second unlocking period of the
first grant under the 2022 Restricted Share Incentive Plan, a total of 8,620,000 restricted shares of 37 awardees were
unlocked for public trading.
Steady promotion of equity incentives is beneficial to the Company's sustainable and healthy development and
gathering of internal power, to "stabilize the team, boost the morale, gather talents and improve performance". By
closely binding the interests of the Company's key personnel with the Company's future performance and the
improvement of the capability to seek returns for shareholders, the Company will see continuous improvement in
42 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
its business performance and the ability to create value.
(IV) Analysis of key financial indicators
YoY changes in major financial data
Unit: RMB yuan
2022H1 2021H1 Change (%) Cause of change
Mainly due to the increase in sales for the
Operating revenue 1,535,615,634.26 1,400,558,964.18 9.64%
period.
Mainly due to the increase in sales for the
Operating cost 1,134,044,266.22 991,455,474.86 14.38%
period.
Mainly due to the decrease in commissions and
Selling expenses 62,093,800.66 68,550,561.32 -9.42%
agency service fees for the period.
Administrative
133,292,392.91 129,761,353.56 2.72% No significant changes.
expenses
Mainly due to the change in foreign exchange
Finance costs -8,856,622.89 -1,626,574.56 -444.50%
gain for the period.
Income tax Mainly due to the decrease in income tax
31,123,723.82 38,037,005.48 -18.18%
expenses payable for the period.
Mainly due to the decrease in investment in
R&D expenses 44,132,225.30 52,906,052.88 -16.58%
research and development for the period.
Net cash generated
from/used in Mainly due to the increase in taxes and fees
152,250,706.73 206,023,828.25 -26.10%
operating paid during the period.
activities
Net cash generated Mainly due to the payment for the acquisition
from/used in -171,226,100.99 1,200,263,426.07 -114.27% of equity interest in Shenzhen Wonder during
investing activities the period.
Net cash generated
Mainly due to the combined effect of the
from/used in
-9,276,543.86 -700,252,772.58 98.68% payment for share repurchase and the recovery
financing
of loan deposits during the period.
activities
Net increase in Mainly due to the inflow from operating
cash and cash -31,580,854.21 682,597,714.47 -104.63% activities and outflow from investing activities
equivalents during the period.
Significant changes in the composition or source of profits during the reporting period.
□ Applicable √ Not applicable
43 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
There is no significant change in the composition or source of profits during the reporting period.
Breakdown of Operating Revenue
Unit: RMB yuan
2022H1 2021H1
As a % of total As a % of total
Change
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 1,535,615,634.26 100% 1,400,558,964.18 100% 9.64%
By operating division
Intelligent
1,535,615,634.26 100.00% 1,400,558,964.18 100.00% 9.64%
manufacturing
By product category
Complete lines and
individual machine
units for intelligent
719,585,213.35 46.86% 747,290,015.07 53.36% -3.71%
corrugated
packaging
machinery
Parts for intelligent
corrugated
431,002,865.60 28.07% 300,176,099.08 21.43% 43.58%
packaging
machinery
Software and
services related to
intelligent
102,910,890.21 6.70% 128,676,852.98 9.19% -20.02%
corrugated
packaging
machinery
Outboard motors and
general utility small 282,116,665.10 18.37% 224,415,997.05 16.02% 25.71%
gasoline motors
By operating segment
Mainland China 140,124,894.68 9.12% 331,950,181.68 23.70% -57.79%
Other countries and
1,395,490,739.58 90.88% 1,068,608,782.50 76.30% 30.59%
regions
44 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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
1,535,615,634.26 1,134,044,266.22 26.15% 9.64% 14.38% -3.06%
manufacturing
By product category
Intelligent
corrugated
1,253,498,969.16 911,985,158.44 27.24% 6.58% 11.62% -3.29%
packaging
machinery
Outboard motors
and general utility
282,116,665.10 222,059,107.78 21.29% 25.71% 27.32% -0.99%
small gasoline
motors
By operating segment
Mainland China 140,124,894.68 98,415,710.91 29.77% -57.79% -58.32% 0.90%
Other countries
1,395,490,739.58 1,035,628,555.31 25.79% 30.59% 37.11% -3.53%
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
45 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
IV Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB yuan
As a % of gross
Amount Primary source/reason Recurrent or not
profit
Return on investment -222,580.97 -0.12% No significant impact. Yes
Mainly due to the increase in
fair value changes recognized
Gain/loss on changes in fair
24,927,586.43 13.08% from the implementation of Yes
value
securities investments during
the period.
Mainly due to the provision
Asset impairment loss -6,154,706.43 -3.23% for decline in value of Not
inventories during the period.
Non-operating income 1,033,996.47 0.54% No significant impact. Not
Non-operating expenses 714,629.11 0.37% No significant impact. Not
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB yuan
30 June 2022 31 December 2021 Change in
As a % of As a % of percentage Reason for any significant change
Amount Amount
total assets total assets (%)
Mainly due to the share repurchase,
Cash and bank acquisition of Shenzhen Wonder and
1,242,403,906.96 19.12% 1,664,336,339.35 26.18% -7.06%
balances payment for foreign investment during
the period.
Accounts
753,538,571.88 11.60% 741,135,648.09 11.66% -0.06% No significant change.
receivable
Contract assets 6,212,959.35 0.10% 24,414,117.64 0.38% -0.28% No significant change.
Mainly due to the increase in sales
Inventories 1,180,552,585.86 18.17% 867,280,013.47 13.64% 4.53% orders, resulting in the increase in
inventory reserve.
Investment
No significant change.
property
46 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
30 June 2022 31 December 2021 Change in
As a % of As a % of percentage Reason for any significant change
Amount Amount
total assets total assets (%)
Long-term
equity 86,076,091.60 1.32% 84,777,596.67 1.33% -0.01% No significant change.
investments
Fixed assets 540,843,950.15 8.32% 544,180,159.09 8.56% -0.24% No significant change.
Construction in
36,036,409.77 0.55% 12,298,259.58 0.19% 0.36% No significant change.
progress
Right-of-use
78,147,661.94 1.20% 80,386,832.91 1.26% -0.06% No significant change.
assets
Short-term Mainly due to partial repayment of
67,132,224.05 1.03% 228,312,880.73 3.59% -2.56%
borrowings short-term loans in the current period.
Manly due to the increase in sales
Contract
719,487,278.58 11.07% 405,842,932.51 6.38% 4.69% orders and the increase in advance
liabilities
receipts during the period.
Mainly due to the reclassification of
Long-term
72,183,710.90 1.11% 325,026,188.49 5.11% -4.00% borrowings due within one year during
borrowings
the period.
Lease liabilities 56,626,311.25 0.87% 65,213,555.87 1.03% -0.16% No significant change.
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 661,616,519.72 Italy marketing by Good 17.08% Not
Fosber management
itself
S.p.A.
100% Producing and
Operation
interest of M&A 22,365,116.93 Italy marketing by Good 0.58% Not
management
EDF S.R. L itself
47 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB yuan
Cumulative fair-value Impairment
Opening Gain/loss on fair-value Purchased in the
Item changes recognized in allowance for the Sold in the period Other changes Closing amount
amount changes in the period period
equity period
Financial assets
1. Financial assets held for
trading (exclusive of derivative 775,249,020.94 4,748,245.04 2,902,010,158.14 2,878,253,631.70 14,157,091.56 817,910,883.98
financial assets)
2. Derivative financial assets 12,936,500.63 -256,707.60 -208,978.46 12,470,814.57
Subtotal of financial assets 788,185,521.57 4,491,537.44 2,902,010,158.14 2,878,253,631.70 13,948,113.10 830,381,698.55
Other non-current financial
162,523,519.41 487,879.55 108,000,000.00 -1,210,848.34 269,800,550.62
assets
Total of the above 950,709,040.98 4,979,416.99 3,010,010,158.14 2,878,253,631.70 12,737,264.76 1,100,182,249.17
Financial liabilities 246,925,243.48 3,499,085.75 250,424,329.23
Particulars about other changes:
Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting Period.
□ Yes √ No
48 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
4. Assets to which the Company’s Rights Were Restricted as at the Period-End
Unit: RMB yuan
Item Closing carrying amount Reason for Restriction
Cash and bank balances 14,680,985.43 Used as deposits to obtain bank acceptance bills and letters of guarantee.
Fixed assets 4,308,785.21 Used to obtain bank loans for subsidiaries.
Other non-current assets due within one year 305,225,000.00 Used as deposits for loans for subsidiaries.
Total 324,214,770.64
VI Analysis of Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in 2022H1 (RMB) Total investment amount in 2021H1 (RMB) Change (%)
1,227,440,484.73 1,608,856,907.68 -23.71%
2. Significant Equity Investments Acquired in the Reporting Period
√Applicable □ Not applicable
49 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Unit: RMB yuan
Gain or
Progress as Whether
Name of Source Type loss of Date of Index of
Investment Investment Shareholding Cooperating Investment of the Expected involved
investee Main business of of investment disclosure disclosure (if
mode amount ratio party period balance return in
company funds product for the (if any) any)
sheet date litigation
period
Shenzhen
Wonder
Production, Business
sales, R&D and Service
technical Partnership
services of (Limited Published on
Shenzhen environmentally Self- Partnership) Completion June Cninfor.com,
M&A 173,800,000.00 51.00% Indefinite Shares 0.00 789,556.27 None
Wonder friendly funded and three of transfer 05,2022 No. 2022-
packaging and persons, 049
printing including
equipment and Zhao Jiang,
accessories Li Yajun
and Luo
Sanliang
合计 -- -- 173,800,000.00 -- -- -- -- -- -- 0.00 789,556.27 -- -- --
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
50 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Unit: RMB yuan
Cumulative
Gain/loss on
fair-value Closing
Security Security Initial Measurement Opening fair-value Purchased in the Sold in the Gain/loss in Accounting Funding
Security type changes carrying
code name investment cost method carrying amount changes in the period period the period title source
recognized amount
period
in equity
Financial
Domestically Farasis Self-
688567 0.00 Fair value 0.00 -4,449,554.36 30,265,333.10 262,240.00 -4,454,321.02 25,548,772.08 assets held
listed stocks Energy funded
for trading
Financial
Domestically Self-
002407 Do-Fluoride 0.00 Fair value 0.00 15,004,678.74 69,067,160.45 0.00 15,004,678.74 84,071,839.19 assets held
listed stocks funded
for trading
Financial
Domestically Jingce - - Self-
300567 0.00 Fair value 0.00 74,055,562.31 2,317,467.00 57,939,840.00 assets held
listed stocks Electronic 13,454,150.92 13,798,255.31 funded
for trading
Financial
Domestically Self-
600760 Avic Sac 0.00 Fair value 0.00 11,401,886.03 71,584,544.20 26,732,226.00 14,336,694.80 59,189,013.00 assets held
listed stocks funded
for trading
Financial
Domestically Self-
---- Other stocks 0.00 Fair value 0.00 0.00 845,037,558.08 840,359,387.98 -4,678,170.10 0.00 assets held
listed stocks funded
for trading
Financial
Trust Self-
---- ---- 6,631,573.01 Fair value 6,631,573.01 -10,883.33 0.00 0.00 3,125,602.67 80,236.57 3,586,206.91 assets held
products funded
for trading
Financial
Self-
Funds ---- ---- 628,007,924.74 Fair value 628,007,924.74 -4,386,594.45 0.00 270,000,000.00 404,162,537.66 10,175,943.21 504,021,330.29 assets held
funded
for trading
51 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Financial
Self-
Others ---- ---- 140,609,523.19 Fair value 140,609,523.19 642,863.33 0.00 1,542,000,000.00 1,601,294,170.39 2,238,529.71 83,553,882.51 assets held
funded
for trading
Total 775,249,020.94 -- 775,249,020.94 4,748,245.04 0.00 2,902,010,158.14 2,878,253,631.70 18,905,336.60 817,910,883.98 -- --
Disclosure date of the board On 14 March 2022, the Board of Directors of the Company held a meeting to consider and approve the proposal relating to securities investment, with the securities
announcement approving the securities investment valid for 12 months from the date of approval at the shareholders' meeting and the announcement date of the Board of Directors' resolution was 15 March
investments 2022.
Disclosure date of the general meeting
On 8 April 2022, the shareholders' meeting was held to consider and approve the proposal relating to securities investment, and the announcement date of the
announcement approving the securities
resolution of the shareholders' meeting was 11 April 2022.
investments (if any)
(2) Investments in Derivative Financial Instruments
√ Applicable □Not applicable
Unit: RMB'0,000
Closing
investment Actual
Purchased
Relationship Initial Opening Sold in the Impairment Closing amount gain/loss
Related Type of Start End in the
Counterparty with the investment investment Reporting allowance investment as % of the in the
transaction derivative date date Reporting
Company amount amount Period (if any) amount Company’s Reporting
Period
closing Period
equity
Huatai
Aluminum 2022- 2022-
Futures Co., N/A No 0 0 114.65 108.83 0 0 -5.82
futures 01-01 06-30
Ltd.
Forward
forex
2022- 2022-
Bank N/A No settlement 3,312.03 3,312.03 2,137.84 5,030.52 0 419.35 0.12% -183.10
01-01 06-30
and sale
contract
52 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Closing
investment Actual
Purchased
Relationship Initial Opening Sold in the Impairment Closing amount gain/loss
Related Type of Start End in the
Counterparty with the investment investment Reporting allowance investment as % of the in the
transaction derivative date date Reporting
Company amount amount Period (if any) amount Company’s Reporting
Period
closing Period
equity
Total 3,312.03 -- -- 3,312.03 2,252.49 5,139.35 0.00 419.35 0.12% -188.92
Funding source Self-funded
Legal matter (if applicable) N/A
Disclosure date of the announcement about the board’s
20 April 2022
consent for the derivative investment (if any)
Disclosure date of the announcement about the general
7 May 2022
meeting’s consent for the derivative investment (if any)
The Company's financial derivative transaction business is mainly intended to avert and prevent risks arising from fluctuations in exchange
rates and commodity prices. In the Rules on the Management of Financial Derivative Transaction Business formulated by the Company,
Risk analysis of positions held in derivatives during the
the operating rules, review and approval authority, routine management, and risk control mechanisms on the financial derivative transaction
Reporting Period and description of control measures
business have been prescribed to standardize business operation as well as prevent and control related risks. Chinese futures exchanges
(Including but not limited to market risk, liquidity risk, credit
have established well-improved risk control mechanisms. As future exchanges assume the performance responsibility, there is a low
risk, operational risk, legal risk, etc.)
probability of credit risk. The Company will strengthen the understanding and mastering of national policies and requirements of relevant
governing bodies to avoid related credit and legal risks.
Changes in market prices or fair value of derivative products
during the Reporting Period, specific methods used, and Undue forward forex settlement and sale contracts are measured at fair value, i.e., the difference between the signing price of an undue
relevant assumption and parameter settings shall be disclosed forward forex settlement and sale contract held at the period-end and the bank’s forward forex rates at the period-end.
for analysis of fair value of derivatives
Description of significant changes in accounting policies and
specific financial accounting principles in respect of the
N/A
Company's derivatives for the Reporting Period as compared
to the prior reporting period
53 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Closing
investment Actual
Purchased
Relationship Initial Opening Sold in the Impairment Closing amount gain/loss
Related Type of Start End in the
Counterparty with the investment investment Reporting allowance investment as % of the in the
transaction derivative date date Reporting
Company amount amount Period (if any) amount Company’s Reporting
Period
closing Period
equity
1. Based on the realities and normal needs of routine operation, the Company and its subsidiaries intend to conduct the financial derivative
transaction business, for the purposes of reducing the risks arising from fluctuations in exchange rates and prices of related commodities to
the principal business of the Company and decreasing the impacts of market fluctuations on the principal business of the Company and its
subsidiaries. By giving full play to the hedging function of financial derivative instruments, the operating results and finance of the Company
and its subsidiaries are increasingly robust. 2. The Company has prepared the rules on the internal control management of the financial
derivate transaction business by relevant regulatory prescriptions, which is conducive to standardizing and strengthening the risk control
Special opinions expressed by independent directors management of financial derivative transactions. The Board of Directors of the Company has performed the necessary review and approval
concerning the Company's derivatives investment and risk procedures for this matter in a legal and rule-compliant manner. No illegalities or violations of regulations and Articles of Association have
control occurred. 3. In strict compliance with the Stock Listing Rules of the Shenzhen Stock Exchange, the Guideline No. 7 of the Shenzhen Stock
Exchange for the Self-regulation of Listed Companies--Transactions and Related-party Transactions, and other relevant laws and regulatory
guidelines, the Company shall make prudent decisions and conduct prudent management, inspections and monitoring of the financial
derivative transactions of the Company and its subsidiaries, strictly control risks, and promptly discharge the information disclosure duty.
4. We hold that the financial derivative transaction business of the Company and its subsidiaries does not prejudice the interests of the
Company and all shareholders, particularly not impair the interests of non-controlling shareholders. Therefore, we approve this matter and
suggest submitting it to the General Meeting of Shareholders of the Company for deliberation.
54 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
5. Use of Raised Funds
□ Applicable √Not applicable
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
Relationshi Principal Registere Operating Operating
Name p with the activities Total assets Net assets Net profit
d capital revenue profit
Company
R&D,
processing,
manufacturing
, and
marketing of
Fosber EUR1.56 2,189,940,321.1 661,616,519.7 929,352,568.3 100,019,034.3 74,778,974.7
Subsidiary corrugator
Group million 6 2 1 2 4
lines and
parts, as well
as provision of
after-sales
services
Production of
general utility
Shunyi
small gasoline RMB10 278,520,604.8 282,116,665.1 30,278,194.9
Investmen Subsidiary 499,004,539.88 34,569,321.53
motors, million 9 0 6
t
shipboard
power
55 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Relationshi Principal Registere Operating Operating
Name p with the activities Total assets Net assets Net profit
d capital revenue profit
Company
(outboard
motors) and its
accessories, as
well as
provision of
after-sales
service
Subsidiaries acquired or disposed of in the Reporting Period:
□ Applicable √ Not applicable
IX Structured Bodies Controlled by the Company
√ Applicable □Not applicable
1. In March 2021, the Company established Tianjin Hangchuang Zhijin Investment Partnership (Limited
Partnership) (the "Tianjin Hangchuang Fund" or the "Partnership") with AVIC Innovation Capital Management Co.,
Ltd. The Company, as the sole LP of the Fund, subscribed for the Partnership's contribution share of
RMB20,000,000. The Fund is a special fund which is to invest in the equity of Sichuan Dajin Stainless Steel Co.,
Ltd. (now renamed as Chengdu Dajin Aero-Tech Co., Ltd.).
This investment is in line with the Company’s development strategy considering the Fund’s investment
direction, decision-making, management, income distribution, loss allocation, etc. From the perspective of business
nature, the Company provides the absolute majority of the capital of the Tianjin Hangchuang Fund, so it is
reasonable to include the Fund in the Company’s consolidated financial statements of the Reporting Period.
2. In March 2022, the wholly owned subsidiary Yineng Investment indirectly invested in Beijing Sinoscience
Fullcryo Technology Co., Ltd. (referred to as "Fullcryo" in this Report) and Sinoscience Fullcryo (Zhongshan)
Equipment Manufacturing Co., Ltd. by making a capital contribution to a limited partnership and obtained non-
controlling interests of the two companies.
As one of the limited partners of the partnership, Yineng Investment accounts for 94.86% of the total capital
contributions. Considering the partnership's agreements on investment orientation, investment decisions, operation
and management, income apportionment, and loss bearing, and the fact that Yineng Investment accounts for the
majority of the capital contributions to the partnership, the partnership is included in the consolidated statements of
56 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Dongfang Precision as a "structured body controlled by the Company" from the perspective of commercial
substance and after complying with the Accounting Standard for Business Enterprises and referring to the
professional opinions of the independent auditor.
X Risks Faced by the Company and Countermeasures
1. Risks arising from fluctuations in exchange rates
The main settlement currency and recording currency of Fosber Group, the principal overseas business entity
of the Company, are euros, while the revenue of Fosber America and domestic entities from export is mainly settled
with the US dollar. Fluctuations in the US dollar and euro exchange rates do not significantly impact the routine
operation of overseas business entities but exert certain impacts on the presentation of their assets and operating
results in the consolidated financial statements. In H1 2022, the euro depreciated constantly; the US dollar became
robust after it entered the interest rate hike cycle, and the US Dollar Index has hit a record high since 2002. The bi-
directional fluctuations in the two currencies have exerted impacts on the Company's consolidated statements in
addition to the principal business.
Countermeasures:
The Company can closely track the global financial market and national exchange rate policies, make timely
decisions to select proper exchange rate management tools to manage exchange rate risks actively. It can also reduce
risk exposure and increase exchange gains by increasing debts of foreign currency and rely on Group management
to strengthen the level of capital coordination in different countries and regions, balance, and offset fluctuation risks
at the Group level.
2. Risk of fluctuations in the prices of Energy ＆ Raw materials
The raw materials required for the Company's corrugated packaging machinery mainly include various types
of steel plates, steel parts and electrical parts. In 2021, the prices of iron ore and base metals in bulk commodities
were once highly volatile, resulting in certain fluctuations in the costs of the Company's main business. In the first
half of 2022, the price of energy and commodity in international markets also experienced some degree of volatility
due to the Russian-Ukrainian conflict, geopolitical and inflationary influences.
Countermeasures:
The Company will pay attention to the market prices of steel and other important raw materials constantly, and
57 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
conduct dynamic analysis and judgment; in terms of procurement, it will strengthen proactive management and
collaboration by adopting countermeasures such as proper adjustment of payment settlement and entering into long-
term purchase agreements for important raw materials to control the fluctuation of procurement prices; it will give
full play to the Group's internal allocation ability brought about by the globalization of business assets, and reach
allocation efficiency and reduce overall costs through rational planning and management of internal transactions
and sharing of high-quality supply chain resources.
3. Integration risk due to epitaxial business
Epitaxial business includes industrial M&A, equity investment and other forms. The Company will arrange
high-end equipment manufacturing through equity control, investment, and other different forms, expecting to
gradually develop new performance growth points in the future.
In the next few years, the Company will continue to expand upstream and downstream in the industry chain
involving its core business in the world and arrange in the key industries supported by the national 14th Five-Year
Plan, such as high-end equipment manufacturing, artificial intelligence, biomedicine, and big consumption. Among
the business entities of its subordinate companies, there are old European companies with nearly 100 years of history
and profound track record, as well as international companies with multinational distribution of business and assets
and customers around the world, and domestic private companies with roots in the Chinese market and years of
hard-working to be leaders in their niche industries.
During the integration, the new member companies are different from Dongfang Precision in cultural
background, language differences, business practices, corporate culture, laws and regulations, fiscal and tax policies,
internal management mechanisms, etc., which bring about certain challenges to the post-investment management
and integration work.
Countermeasures:
Promote the implementation of the "globalization" strategy and bring in talents capable of
handling international business.
Promote the implementation of the "a wealth of talents" strategy, improve the synthetic ability
of the management team and the backbone team of key business, and build a prudent backbone team with
a broad vision that highly identifies with the purpose and culture of the Company, and is capable of
winning battles.
Promote the "synergy" strategy and seek common ground with an open mind on the premise of
58 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
"mutual respect and trust”.
Carry out the post-investment management mechanism of "combination of strategic control +
authorized management" to form a unique and effective integration and control mode in the run-in process,
which reaches a better industrial synergy and the positive development of each business entity.
4. Potential risks of financial investment business
In recent years, the Company has arranged some of its idle owned funds to carry out financial investment
business such as securities investment and entrusted wealth management in an appropriate manner, based on the
actual and development needs.
Based on its own attributes, there are certain risks of carrying out the above business due to fluctuations in the
financial market and uncertainty of income; and the risk that the Company may suffer certain investment losses in
case of risk events in the process of wealth management activities in terms of investment strategies and use of funds.
Countermeasures:
On the premise that the funds required for the daily operation of the main business will not be affected, the
Company reasonably controls the capital scale for financial investment; it establishes and improves the internal
control system and mechanism standards for securities investment and entrusted financial management, and
strengthens the risk control management of securities investment business, safeguard the safety of investment funds,
and strictly control the risk exposure. 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.
59 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Part IV Corporate Governance
I Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Date of the
Meeting Type participation Disclosure date Resolution
meeting
ratio
1. The Proposal on the 2022 Restricted Share Incentive Plan (Draft) and Its Summary was
The First approved.
Extraordinary
Extraordinary 2. The Proposal on the Appraisal Management Methods for the 2022 Restricted Share Incentive
General 33.10% 14 March 2022 15 March 2022
General Meeting Plan was approved.
Meeting
of 2022 3. The Proposal on the Request for the General Meeting to Authorize the Board of Directors to
Handle Matters in Relation to the 2022 Restricted Share Incentive Plan was approved.
1. The Proposal on the 2021 Work Report of the Board of Directors (including the 2021 Work
Report of Independent Directors was approved.
2. The Proposal on the 2021 Work Report of the Supervisory Committee was approved.
3. The Proposal on the 2021 Annual Report and Its Summary was approved.
4. The Proposal on the 2021 Final Financial Accounts was approved.
5. The Proposal on the 2022 Budget was approved.
Annual 6. The Proposal on the 2021 Final Dividend Plan was approved.
The 2021 Annual
General 32.52% 8 April 2022 11 April 2022 7. The Proposal on the 2021 Internal Control Assessment Report was approved.
General Meeting
Meeting 8. The Proposal on Intension to Appoint the Independent Auditor for 2022 was approved.
9. The Proposal on the Use of Own Funds for Entrusted Wealth Management in 2022 was approved.
10. The Proposal on the Compliance with Applicable Laws and Regulations of the Spin-off Listing
of the Subsidiary Suzhou Parsun Power Machine Co., Ltd. on the ChiNext Board was approved.
11. The Proposal on the Plan for the Spin-off Listing of the Subsidiary Suzhou Parsun Power
Machine Co., Ltd. on the ChiNext Board was approved.
12. The Proposal on the Preliminary Plan for the Spin-off Listing of the Subsidiary Suzhou Parsun
60 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Power Machine Co., Ltd. on the ChiNext Board was approved.
13. The Proposal on the Compliance with the Spin-off Rules for Listed Companies (Trial) of the
Spin-off Listing of the Subsidiary Suzhou Parsun Power Machine Co., Ltd. on the ChiNext Board
was approved.
14. The Proposal on the Benefit of the Spin-off Listing of the Subsidiary Suzhou Parsun Power
Machine Co., Ltd. on the ChiNext Board in Protecting the Legitimate Interests of Shareholders and
Creditors was approved.
15. The Proposal on the Company Maintaining Independence and Going Concern Capability was
approved.
16. The Proposal on Suzhou Parsun Power Machine Co., Ltd. Possessing Due Capability of
Operation Compliance was approved.
17. The Proposal on the Statement Regarding the Completeness and Compliance of the Statutory
Procedures in the Spin-off and the Validity of the Legal Documents Filed was approved.
18. The Proposal on the Purpose, Commercial Rationality, Necessity and Feasibility Analysis of
the Spin-off was approved.
19. The Proposal on the Request for the General Meeting to Authorize the Board of Directors and
Its Authorized Personnel to Handle Matters in Relation to the Spin-off Listing was approved.
1. The Proposal on the Conducting of Financial Derivatives Trading was approved.
2. The Proposal on the Revision of the Articles of Association was approved.
The Second 3. The Proposal on the Revision of the Rules of Procedure for General Meeting was approved.
Extraordinary 4. The Proposal on the Revision of the Rules of Procedure for the Board of Directors was approved.
Extraordinary
General 32.57% 6 May 2022 7 May 2022 5. The Proposal on the Revision of the Rules of Procedure for the Supervisory Committee was
General Meeting
Meeting approved.
of 2022
6. The Proposal on the Revision of the Management Rules for Securities Investment was approved.
7. The Proposal on the Formulation of the Management Rules for Financial Derivatives Trading
was approved.
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed Voting Rights
□ Applicable Not applicable
61 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
II Changes of Directors, Supervisors and Senior Management
Applicable □ Not applicable
Name Office title Type of change Date Reason
Feng Jia Board Secretary Appointed 14 March 2022 Internal reassignment
Zhou Wenhui Board Secretary Removed 14 March 2022 Internal reassignment
62 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
Applicable □ Not applicable
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 plan was approved at the First Extraordinary General
Meeting of 2020 on 27 March 2020. For details, see the Summary of the 2020 Restricted Share Incentive Plan
disclosed by the Company on www.cninfo.com.cn dated 12 March 2020.
To further build and improve its long-term incentive mechanism, attract, and retain talent, fully motivate its
key managerial, technological, and business personnel, effectively align the Company’s and shareholders’ interests
with the personal interests of the core team, and make all the parties concerned to focus on the long-term
development of the Company, the Company launched the 2022 Restricted Share Incentive Plan in the first quarter
of 2022. The plan was approved at the First Extraordinary General Meeting of 2022 on 14 March 2022. For details,
see the 2022 Restricted Share Incentive Plan disclosed by the Company on www.cninfo.com.cn dated 15 March
2022.
1. On 25 February 2022, the Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking
Period for the Reserved Restricted Shares under the 2020 Restricted Share Incentive Plan was approved at the 13th
(Extraordinary) Meeting of the 4th Board of Directors and the 10th (Extraordinary) Meeting of the 4th Supervisory
Committee. On 9 March 2022, 848,000 shares held by 18 awardees were unlocked for public trading in the first
unlocking period for the reserved restricted shares under the 2020 Restricted Share Incentive Plan.
2. On 21 March 2022, the Proposal on the First Grant of Restricted Shares to Awardees under the 2022
Restricted Share Incentive Plan was approved at the 15th (Extraordinary) Meeting of the 4th Board of Directors.
The date for the first grant was 21 March 2022. In April 2022, the Company completed the ownership transfer of
the 2.65 million restricted shares to 7 awardees at RMB1.00/share, the listing date of which is 28 April 2022. For
details, see the Announcement on the Completion of the Ownership Transfer of the First Grant under the 2022
Restricted Share Incentive Plan disclosed by the Company on www.cninfo.com.cn dated 29 April 2022.
3. On 17 June 2022, the Proposal on the Satisfaction of the Unlocking Conditions for the Second Unlocking
Period for the First Grant under the 2020 Restricted Share Incentive Plan was approved at the 17th (Extraordinary)
Meeting of the 4th Board of Directors and the 14th (Extraordinary) Meeting of the 4th Supervisory Committee. On
24 June 2022, 8,620,000 shares held by 37 awardees were unlocked for public trading in the second unlocking
period for the first grant under the 2020 Restricted Share Incentive Plan.
63 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
2. Implementation of Employee Stock Ownership Plans
□ Applicable Not applicable
3. Other Incentive Measures for Employees
□ Applicable Not applicable
64 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Part V Environmental and Social Responsibilities
I Significant Environmental Issues
Whether the listed company and its subsidiaries fell into major pollutant-discharge enterprises and institutions published by national
environmental protection authorities.
□ Yes √ No
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 the Reporting
Period. For other environmental information, please refer to “II Social Responsibilities” below.
Measures taken to reduce carbon emissions in the Reporting Period and the impact:
□ Applicable √ Not applicable
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 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
65 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 was granted the National Pollutant Discharge Permit
and met post-licensing regulatory requirements as required. Second, Dongfang Precision commissioned the
qualified third-party environmental protection agencies to compile the Contingency Plans for Environmental
Emergencies, and commission a third-party testing agency to take samples every quarter to monitor and issue third-
party test reports, and transfer hazardous waste in strict accordance with national requirements.
Third, the Company’s environmental protection facilities passed the qualification re-examination on
OHSAS18001:2007 Occupational Health and Safety Management Systems and ISO14001:2005 Environmental
Management System. Parsun Power which is a subsidiary of the Company is not in the heavy pollution industry, its
production process has less impact on the environment, and it has purchased complete environmental protection
equipment, which are in normal operation and can meet the daily pollutant treatment requirements, that leads no
violation of environmental protection related laws and administrative regulations and receive administrative
penalties.
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.
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". Parsun Power is a national "small giant" enterprise, a national high-tech enterprise, an
engineering technology research center for outboard engines in Jiangsu Province, an enterprise technology centre
recognized by Jiangsu Province, a leading enterprise in China's internal combustion engine industry and a director
unit of the Small Gasoline Engine Branch of China Internal Combustion Engine Industry Association. The outboard
engine of BPS has also won many honors such as the certificate of industrialization demonstration project of national
torch plan, innovative product of China machinery industry, famous brand product of Jiangsu province and famous
brand product of Suzhou city.
66 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 Independent 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
67 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 Punishments 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
68 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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
□ Applicable √ Not applicable
No such cases in the Reporting Period.
6. Transactions between the finance company controlled by the company and related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
7. 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.
2. Significant Guarantees
69 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure date
Actual Actual Counter- Having Guarantee for a
of the guaranteed Line of Type of Security Term of
Obligor occurrenc guarante guarantees expired related party or
line guarantee guarantee (if any) guarantee
e date e amount (if any) or not not
announcement
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure date
Actual Actual Counter- Having Guarantee for a
of the guaranteed Line of Type of Security Term of
Obligor occurrenc guarante guarantees expired related party or
line guarantee guarantee (if any) guarantee
e date e amount (if any) or not not
announcement
From the
date when
the
Dongfang 4 Joint
30 December 17,240.6 guarantee
Precision 17,240.66 February liability. Deposits - Yes Not
2020 6 took
(Netherland) 2021 Pledge
effect to
21 April
2022
From the
date when
the
Dongfang Joint
30 June 23,478.1 guarantee
Precision 5 June 2020 24,529.40 liability. Deposits N/A Not Not
2020 4 took
(Netherland) Pledge
effect to
29 June
2023
Total approved line for such Total actual amount of
guarantees in the Reporting 0 such guarantees in the 0
Period (B1) Reporting Period (B2)
Total actual balance of
Total approved line for such
such guarantees at the
guarantees at the end of the 41,770.06 23,478.14
end of the Reporting
Reporting Period (B3)
Period (B4)
Guarantees provided between subsidiaries
Disclosure date
Actual Actual Counter- Having Guarantee for a
of the guaranteed Line of Type of Security Term of
Obligor occurrenc guarante guarantees expired related party or
line guarantee guarantee (if any) guarantee
e date e amount (if any) or not not
announcement
70 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
From the
date when
the
30 April Joint guarantee
QCorr 15 May 2020 2,102.52 2,102.52 N/A N/A Not Not
2020 liability took
effect to
30 June
2024
Total approved line for such Total actual amount of
guarantees in the Reporting 0 such guarantees in the 0
Period (C1) Reporting Period (C2)
Total actual balance of
Total approved line for such
such guarantees at the
guarantees at the end of the 2,102.52 2,102.52
end of the Reporting
Reporting Period (C3)
Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee line approved in
amounts in the
the Reporting Period 0 0
Reporting Period
(A1+B1+C1)
(A2+B2+C2)
Total actual guarantee
Total approved guarantee line at
balance at the end of
the end of the Reporting Period 43,872.58 25,580.66
the Reporting Period
(A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 7.02%
Of which:
Balance of guarantees provided for shareholders, the actual
0
controller, and their related parties (D)
Balance of debt guarantees provided directly or indirectly for
2,102.52
obligors with an over 70% debt/asset ratio (E)
Amount by which the total guaranteed amount exceeds 50%
0
of the Company’s net assets (F)
Total of the three amounts above (D+E+F) 2,102.52
Joint liability possibly borne or already borne in the Reporting
N/A
Period for outstanding guarantees (if any)
Guarantees provided in breach of prescribed procedures (if
N/A
any)
3. Cash Entrusted for Wealth Management
71 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Applicable □ Not applicable
Unit: RMB'0,000
Impairment
Unrecovered provision for
Type Funding source Amount Undue amount
overdue amount unrecovered
overdue amount
Bank’s wealth management
Self-funded 90,300 7,400 0 0
product
Securities firm’s wealth
Self-funded 61,000 46,000 0 0
management product
Trust product Self-funded 662.07 358.62 0 0
Total 151,962.07 53,758.62 0 0
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. Other Significant Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
□ Applicable Not applicable
No such cases in the Reporting Period.
XIV Significant Events of Subsidiaries
□ Applicable Not applicable
72 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 dividend
New dividend converted
Shares Percentage (%) Other Subtotal Shares Percentage (%)
issues converted from
from profit capital
reserves
1. Restricted shares 241,176,130 18.10% 0 0 0 -8,293,597 -8,293,597 232,882,533 17.48%
1.1 Shares held by the
0 0.00% 0 0 0 0 0 0 0.00%
government
1.2 Shares held by state-
0 0.00% 0 0 0 0 0 0 0.00%
owned corporations
1.3 Shares held by other
239,736,130 17.99% 0 0 0 -7,693,597 -7,693,597 232,042,533 17.42%
domestic investors
Including: Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
domestic corporations
Shares held by domestic
239,736,130 17.99% 0 0 0 -7,693,597 -7,693,597 232,042,533 17.42%
individuals
73 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
1.4 Shares held by
1,440,000 0.11% 0 0 0 -600,000 -600,000 840,000 0.06%
overseas investors
Including: Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
overseas corporations
Shares held by overseas
1,440,000 0.11% 0 0 0 -600,000 -600,000 840,000 0.06%
individuals
2. Unrestricted shares 1,090,762,037 81.89% 0 0 0 8,293,597 8,293,597 1,099,055,634 82.52%
2.1 RMB-denominated
1,090,762,037 81.89% 0 0 0 8,293,597 8,293,597 1,099,055,634 82.52%
ordinary shares
2.2 Domestically listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
2.3 Overseas listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
2.4 Others 0 0.00% 0 0 0 0 0 0 0.00%
3. Total shares 1,331,938,167 100.00% 0 0 0 0 0 1,331,938,167 100.00%
Reasons for share changes:
Applicable □ Not applicable
1. Part of the shares held by Ms. Qiu Yezhi, the director, and CEO of the Company, was unlocked as allowed by the applicable laws and regulations
In December 2021, Ms. Qiu Yezhi, the director, and CEO of the Company, completed a shareholding reduction. Upon the reduction, she held 23,382,388 shares
in the Company. In January 2022, 5,845,597 shares of hers were unlocked according to the statutory quota of 25% transferable shares in the year.
2. Unlocking for public trading of shares in the first unlocking period for the reserved restricted shares under the Restricted Share Incentive Plan
In March 2022, the shares were unlocked for public trading in the first unlocking period for the reserved restricted shares under the 2020 Restricted Share Incentive
Plan, which involved 848,000 shares held by 18 awardees.
3. Completion of the ownership transfer of the first grant under the 2022 Restricted Share Incentive Plan
In April 2022, the Company completed the ownership transfer of the 2.65 million restricted shares in the first grant under the 2022 Restricted Share Incentive Plan
to 7 awardees.
74 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
4. Unlocking for public trading of shares in the second unlocking period for the first grant under the Restricted Share Incentive Plan
In June 2022, the shares were unlocked for public trading in the second unlocking period for the first grant under the 2020 Restricted Share Incentive Plan, which
involved 8,620,000 shares held by 37 awardees.
Approval of share changes:
Applicable □ Not applicable
In the Reporting Period, with respect to share changes involved in the “unlocking for public trading of shares in the first unlocking period for the reserved restricted
shares under the 2020 Restricted Share Incentive Plan”, the “ownership transfer of the first grant under the 2022 Restricted Share Incentive Plan” and the “unlocking
for public trading of shares in the second unlocking period for the first grant under the 2020 Restricted Share Incentive Plan”, 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 in the “ownership transfer of the first grant under the 2022 Restricted Share
Incentive Plan”, 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
During the period from October 2021 to 30 June 2022, the Company repurchased a total of approximately 106.6521 million shares (or around 8.01% of the
Company’s total share capital) through centralized bidding. With the highest trading price being RMB6.30/share and the lowest being RMB3.59/share, the total amount
paid was approximately RMB551 million (exclusive of transaction costs).
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
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable Not applicable
75 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
2. Changes in Restricted Shares
Applicable □ Not applicable
Unit: share
Opening restricted Increase in restricted
Shareholder Unlocked in the period Closing restricted shares Reason for restriction Date of unlocking
shares shares in the period
Participated in the
Restricted Share Incentive
Qiu Yezhi 23,382,388 9,445,597 3,600,000 17,536,791 Plan of the 2022-1-4
Company/restricted shares
of senior management
Participated in the
Restricted Share Incentive
Xie Weiwei 800,000 400,000 350,000 750,000 Plan of the 2022-6-24
Company/restricted shares
of senior management
Participated in the
Restricted Share Incentive
Zhou Wenhui 960,000 480,000 420,000 900,000 Plan of the 2022-6-24
Company/restricted shares
of senior management
The other 34 awardees
Participated in the
of the first grant of the
8,280,000 4,140,000 0 4,140,000 Restricted Share Incentive 2022-6-24
2020 Restricted Share
Plan of the Company
Incentive Plan
Participated in the
Feng Jia 0 0 700,000 700,000 2023-4-28
Restricted Share Incentive
76 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Opening restricted Increase in restricted
Shareholder Unlocked in the period Closing restricted shares Reason for restriction Date of unlocking
shares shares in the period
Plan of the Company
The other 6 awardees of Participated in the
the first grant of the
0 0 1,950,000 1,950,000 Restricted Share Incentive 2023-4-28
2022 Restricted Share
Incentive Plan Plan of the Company
Participated in the
Shao Yongfeng 800,000 160,000 0 640,000 Restricted Share Incentive 2022-3-9
Plan of the Company
The other 17 awardees
Participated in the
of the reserved grant of
3,440,000 688,000 0 2,752,000 Restricted Share Incentive 2022-3-9
the 2020 Restricted
Plan of the Company
Share Incentive Plan
Total 37,662,388 15,313,597 7,020,000 29,368,791 -- --
II Issuance and Listing of Securities
□ Applicable Not applicable
77 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III Shareholders and Their Shareholdings
Unit: share
Number of ordinary shareholders at the Number of preference shareholders with resumed voting
60,127 0
period-end rights at the period-end (if any) (see note 8)
5% or greater ordinary shareholders or top 10 ordinary shareholders
Total ordinary shares Increase/decrease Unrestricted Shares in pledge, marked or frozen
Name of Nature of Shareholding Restricted ordinary
held at the period- in the Reporting ordinary
shareholder shareholder percentage shares held Status Shares
end Period shares held
Tang Zhuolin Domestic individual 20.33% 270,737,568 0 203,053,176 67,684,392 In pledge 135,360,000
Tang Zhuomian Domestic individual 7.27% 96,885,134 0 0 96,885,134 In pledge 10,000,000
Pulead
State-owned
Technology 3.62% 48,149,787 -4,599,771 0 48,149,787
corporation
Industry Co., Ltd.
Luzhou Industrial
Development State-owned
2.39% 31,770,010 0 0 31,770,010
Investment Group corporation
Co., Ltd.
Qinghai Puren
Intelligent
Technology R & Domestic non-state-
2.00% 26,628,340 0 0 26,628,340
D Center owned corporation
(Limited
Partnership)
Qiu Yezhi Domestic individual 1.76% 23,382,388 0 17,536,791 5,845,597
Huarong Other 1.73% 23,043,424 -8,329,125 0 23,043,424
78 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Securities－
China Merchants
Securities－
Huarong Youzhi
Collective Asset
Management Plan
No. 1
Hong Kong
Securities
Overseas corporation 1.63% 21,716,035 -6,650,501 0 21,716,035
Clearing
Company Limited
Shengji Equity
Investment Fund State-owned
1.47% 19,607,843 0 0 19,607,843 In pledge 19,607,843
(Shanghai) Co., corporation
Ltd.
JIC Investment State-owned
0.97% 12,984,216 0 0 12,984,216
Co., Ltd. corporation
Strategic investor or general corporation
becoming a top-10 ordinary shareholder in None
a rights issue (if any) (see note 3)
Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On 18 August 2010, they signed the Agreement on Acting in Concert. Pulead
Related or acting-in-concert parties among Technology Industry Co., Ltd. (Chinese name has changed from “北大先行科技产业有限公司” to “东圣先行科技产业有限公司” during the
the shareholders above reporting period.) and Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) are acting-in-concert parties. Apart 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 rights, or waiving None
voting rights
Top 10 shareholders including the special As of 30 June 2022, there were 112,162,199 shares in the Company’s special account for repurchase, accounting for 8.42% of its total share
79 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
account for repurchase (if any) (see note capital.
11)
Top 10 unrestricted ordinary shareholders
Shares by type
Name of shareholder Unrestricted ordinary shares held at the period-end
Type Shares
Tang Zhuomian 96,885,134 RMB-denominated ordinary stock 96,885,134
Tang Zhuolin 67,684,392 RMB-denominated ordinary stock 67,684,392
Pulead Technology Industry Co., Ltd. 48,149,787 RMB-denominated ordinary stock 48,149,787
Luzhou Industrial Development
31,770,010 RMB-denominated ordinary stock 31,770,010
Investment Group Co., Ltd.
Qinghai Puren Intelligent Technology R &
26,628,340 RMB-denominated ordinary stock 26,628,340
D Center (Limited Partnership)
Huarong Securities－China Merchants
Securities－Huarong Youzhi Collective 23,043,424 RMB-denominated ordinary stock 23,043,424
Asset Management Plan No. 1
Hong Kong Securities Clearing Company
21,716,035 RMB-denominated ordinary stock 21,716,035
Limited
Shengji Equity Investment Fund
19,607,843 RMB-denominated ordinary stock 19,607,843
(Shanghai) Co., Ltd.
JIC Investment Co., Ltd. 12,984,216 RMB-denominated ordinary stock 12,984,216
Beixin Ruifeng Fund－SPD Bank－
Beijing International Trust－Beijing
TrustQingyan Fengshou Wealth 10,818,183 RMB-denominated ordinary stock 10,818,183
Management Collective Capital Trust Plan
No. 2015015
Related or acting-in-concert parties among Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On 18 August 2010, they signed the Agreement on Acting in Concert. Pulead
top 10 unrestricted ordinary shareholders, Technology Industry Co., Ltd. (Chinese name changed from “北大先行科技产业有限公司” to “东圣先行科技产业有限公司”, and English
80 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
as well as between top 10 unrestricted name unchanged) and Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) are acting-in-concert parties. Apart from that,
ordinary shareholders and top 10 ordinary the Company is not aware of any related or acting-in-concert parties among the other shareholders above.
shareholders
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.
IV Changes in the Shareholdings of Directors, Supervisors and Senior Management
Applicable □ Not applicable
Opening shareholding Restricted shares Closing shareholding of
Opening Increase in Decrease in Closing
of granted restricted granted in the granted restricted shares
Name Office title Incumbent/Former shareholding the period the period shareholding
shares period (share)
(share) (share) (share) (share)
(share) (share)
Feng Board
Incumbent 0 700,000 0 700,000 0 700,000 700,000
Jia Secretary
Total -- -- 0 700,000 0 700,000 0 700,000 700,000
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.
81 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Part VIII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
82 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Part IX Corporate Bonds
□ Applicable √ Not applicable
83 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 2022
Unit: RMB yuan
Item 30 June 2022 31 December 2021
Current assets:
Cash and bank balances 1,242,403,906.96 1,664,336,339.35
Settlement provisions
Dismantling funds
Financial assets held for trading 830,381,698.55 788,185,521.57
Derivative financial assets
Notes receivable 23,793,263.47 13,272,025.04
Accounts receivable 753,538,571.88 741,135,648.09
Receivable financing 32,869,739.53 30,692,449.25
Prepayments 42,821,570.23 34,177,802.36
Premium receivable
Receivable reinsurance account
Provision for reinsurance contract
84 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
receivable
Other receivables 82,380,620.44 71,363,166.84
Including: Interest receivable
Dividend receivable
Buy back resale financial assets
Inventories 1,180,552,585.86 867,280,013.47
Contract assets 6,212,959.35 24,414,117.64
Assets held for sale
Current portion of non-current 307,103,250.00 108,385,000.00
assets
Other current assets 41,556,112.47 32,124,006.99
Total current assets 4,543,614,278.74 4,375,366,090.60
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 143,750.00
Long-term equity investment 86,076,091.60 84,777,596.67
Investment in other equity
instruments
Other non-current financial assets 269,800,550.62 162,523,519.41
Real estate investment
Fixed assets 540,843,950.15 544,180,159.09
Construction in progress 36,036,409.77 12,298,259.58
Productive biological assets
Oil and gas asset
Right-of-use assets 78,147,661.94 80,386,832.91
Intangible assets 301,891,110.43 293,718,987.62
Development expenditure
85 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Goodwill 447,185,386.62 306,969,147.76
Long-term prepaid expenses 14,207,865.54 11,962,127.07
Deferred tax assets 172,174,858.73 180,245,522.94
Other non-current assets 8,268,653.60 304,596,841.54
Total non-current assets 1,954,632,539.00 1,981,802,744.59
Total assets 6,498,246,817.74 6,357,168,835.19
Current liabilities:
Short-term borrowings 67,132,224.05 228,312,880.73
Borrowing from the Central Bank
Borrowed funds
Financial liabilities held for trading 115,096,944.17 110,746,939.04
Derivative financial liabilities
Notes payable 133,601,311.71 149,191,690.00
Accounts payable 639,755,248.52 619,265,856.18
Advance receivables
Contract liabilities 719,487,278.58 405,842,932.51
Selling back financial assets
Deposits and Interbank deposit
Agent trading securities
Agent underwriting securities
Employee benefits payable 104,806,517.35 103,809,783.58
Tax payable 29,308,458.31 60,701,346.24
Other payables 125,906,503.26 100,018,273.09
Including: Interest payable
Dividend payable 2,160,000.00
Fees and commissions
Reinsurance accounts payable
Liabilities held for sale
Current portion of non-current 286,705,390.02 38,495,724.83
86 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
liabilities
Other current liabilities 9,928,971.98 12,836,473.00
Total current liabilities 2,231,728,847.95 1,829,221,899.20
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 72,183,710.90 325,026,188.49
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities 56,626,311.25 65,213,555.87
Long-term payables
Long-term employee benefits 13,022,074.87 16,083,170.32
payable
Provisions 100,367,571.87 117,932,721.59
Deferred income 11,631,981.66 12,190,311.66
Deferred tax liabilities 2,610,713.55 1,747,137.95
Other non-current liabilities 135,327,385.06 136,178,304.44
Total non-current liabilities 391,769,749.16 674,371,390.32
Total Liabilities 2,623,498,597.11 2,503,593,289.52
Equity:
Share capital 1,331,938,167.00 1,331,938,167.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus 3,277,610,812.67 3,238,765,859.94
Less: Treasury stock 709,899,049.72 494,335,503.94
Other comprehensive income -44,876,067.29 -33,322,662.98
Special reserve 12,543,018.76 11,252,639.19
Surplus reserves 51,830,974.45 51,830,974.45
87 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
General risk preparation
Retained earnings -275,959,257.44 -424,159,175.27
Total equity attributable to owners of the 3,643,188,598.43 3,681,970,298.39
parent
Non-controlling interests 231,559,622.20 171,605,247.28
Total equity 3,874,748,220.63 3,853,575,545.67
Total liabilities and equity 6,498,246,817.74 6,357,168,835.19
Legal representative: Tang Zhuolin Chief in charge of accounting work: Shao Yongfeng Head of accounting institution: Yao Bin
2. Parent Company Balance Sheet
Unit: RMB yuan
Item 30 June 2022 31 December 2021
Current assets:
Cash and bank balances 319,748,113.04 526,602,901.98
Financial assets held for trading 495,871,537.20 652,931,497.75
Derivative financial assets
Notes receivable
Accounts receivable 200,801,646.23 154,703,065.67
Receivable financing 20,806,060.03 14,939,923.99
Prepayments 9,009,996.21 8,893,984.77
Other receivables 529,593,075.51 444,140,266.79
Including: Interest receivable
Dividend receivable 17,840,000.00
Inventories 177,014,585.00 145,283,359.74
Contract assets 17,681,315.64
Assets held for sale
Current portion of non-current 307,103,250.00 108,385,000.00
assets
88 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Other current assets 713,296.22
Total current assets 2,059,948,263.22 2,074,274,612.55
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 143,750.00
Long-term equity investment 744,360,303.01 566,779,845.04
Investment in other equity
instruments
Other non-current financial assets 95,068,654.33 110,672,495.38
Real estate investment
Fixed assets 310,028,966.89 316,780,357.65
Construction in progress 4,924,121.65 2,040,059.06
Productive biological assets
Oil and gas asset
Right-of-use assets 14,575,949.72 17,226,122.41
Intangible assets 57,501,886.01 58,297,372.40
Development expenditure
Goodwill
Long-term prepaid expenses 6,439,442.81 4,449,274.82
Deferred tax assets 111,405,401.06 109,447,418.03
Other non-current assets 300,150,000.00
Total non-current assets 1,344,304,725.48 1,485,986,694.79
Total assets 3,404,252,988.70 3,560,261,307.34
Current liabilities:
Short-term loan
Financial liabilities held for trading 5,861,200.00 5,861,200.00
Derivative financial liabilities
Notes payable 42,343,994.77 45,445,513.50
89 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Accounts payable 65,639,210.59 61,109,554.88
Advance receivables
Contract liabilities 37,531,398.37 21,697,782.14
Employee benefits payable 8,359,987.18 13,205,296.64
Tax payable 1,798,267.61 2,850,207.94
Other payables 151,736,026.05 195,636,226.94
Including: Interest payable
Dividend payable
Liabilities held for sale
Current portion of non-current 5,475,702.03 4,875,266.03
liabilities
Other current liabilities 2,171,045.38 1,275,327.99
Total current liabilities 320,916,831.98 351,956,376.06
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities 10,369,048.27 13,331,936.29
Long-term payables
Long-term employee benefits
payable
Provisions 4,467,008.95 1,635,363.75
Deferred income 11,631,981.66 12,190,311.66
Deferred tax liabilities
Other non-current liabilities 12,262,010.40 12,262,010.40
Total non-current liabilities 38,730,049.28 39,419,622.10
Total Liabilities 359,646,881.26 391,375,998.16
Equity:
90 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Share capital 1,331,938,167.00 1,331,938,167.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus 3,175,373,724.11 3,162,960,902.13
Less: Treasury stock 709,899,049.72 494,335,503.94
Other comprehensive income
Special reserve 5,944,597.49 5,067,104.62
Surplus reserves 51,830,974.45 51,830,974.45
Retained earnings -810,582,305.89 -888,576,335.08
Total equity 3,044,606,107.44 3,168,885,309.18
Total liabilities and equity 3,404,252,988.70 3,560,261,307.34
3. Consolidated Income Statement
Unit: RMB yuan
Item H1 2022 H1 2021
1 Total operating revenue 1,535,615,634.26 1,400,558,964.18
Including: Operating revenue 1,535,615,634.26 1,400,558,964.18
Interest income
Premiums earned
Fee and commission income
2 Total operating cost 1,371,662,485.67 1,242,685,402.46
Including: Cost of sales 1,134,044,266.22 991,455,474.86
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 6,956,423.47 6,319,014.40
Selling expenses 62,093,800.66 68,550,561.32
Administrative expenses 133,292,392.91 129,761,353.56
91 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
R&D expenses 44,132,225.30 48,225,572.88
Finance costs -8,856,622.89 -1,626,574.56
Including: Interest expenses 5,668,853.58 4,899,967.92
Interest income 8,770,967.42 11,985,482.68
Add: Other income 6,210,725.52 6,853,659.68
Investment income (loss with "-" sign) -222,580.97 52,969,194.45
Including: Share of profit or loss of joint
1,279,980.62 1,249,209.43
ventures and associates
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
24,927,586.43 21,393,373.17
"-" sign)
Credit impairment loss (loss is listed with "-
1,790,013.02 487,181.58
" sign)
Asset impairment loss (loss with "-" sign) -6,154,706.43 583,807.10
Gain/loss on disposal of assets (loss with "-"
-233,705.60 276,635.45
sign)
3 Operating profit (losses are listed with "-" sign) 190,270,480.56 240,437,413.15
Add: Non-operating income 1,033,996.47 364,145.89
Less: Non-operating expenses 714,629.11 420,240.48
5 Gross profit (the gross loss shall be filled in with the
190,589,847.92 240,381,318.56
sign "-")
Less: Income tax expenses 31,123,723.82 38,037,005.48
Net profit (net loss is listed with "-" sign) 159,466,124.10 202,344,313.08
(1) Net profit from continuing operations
i. Net profit from continuing operations (net loss
159,466,124.10 202,344,313.08
with "-" sign)
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 148,199,917.83 191,117,520.46
ii. Net profit attributable to non-controlling
11,266,206.27 11,226,792.62
interests
6 Other comprehensive income/(loss), net of tax -12,838,602.70 -22,999,041.42
92 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Other comprehensive income/(loss) attributable
-11,553,404.31 -20,068,085.91
to owners of the parent, net of tax
(1) Other comprehensive loss that will not be
440,788.86 -95,990.87
reclassified to profit or loss
i. Changes caused by remeasurements
440,788.86 -95,990.87
on defined benefit schemes
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
-11,994,193.17 -19,972,095.04
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
-11,994,193.17 -19,972,095.04
translation of foreign currency-denominated financial
statements
vii. Other
Other comprehensive income attributable to non-
-1,285,198.39 -2,930,955.51
controlling interests, net of tax
Total comprehensive income 146,627,521.40 179,345,271.66
Total comprehensive income attributable to
136,646,513.52 171,049,434.55
owners of the parent
Total comprehensive income attributable to non-
9,981,007.88 8,295,837.11
controlling interests
Earnings per share:
(1) Basic earnings per share 0.12 0.14
(2) Diluted earnings per share 0.12 0.14
Legal representative: Tang Zhuolin Chief in charge of accounting work: Shao Yongfeng Head of accounting institution: Yao Bin
93 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
4. Parent Company Income Statement
Unit: RMB yuan
Item H1 2022 H1 2021
1 Operating Revenue 214,661,874.19 240,083,153.60
Less: Cost of sales 117,832,956.03 122,283,078.03
Taxes and surcharges 3,855,068.95 3,594,496.78
Selling expenses 9,405,763.83 9,976,195.72
Administrative expenses 41,497,863.33 41,466,916.46
R&D expenses 9,213,094.41 17,269,979.76
Finance costs -20,244,231.98 -4,029,733.48
Including: Interest expense 1,004,912.07 1,004,261.21
Interest income 6,309,101.69 6,838,464.74
Add: other income 1,681,381.91 2,778,877.55
Investment income (loss with "-" sign) 20,596,618.64 66,091,613.74
Including: Share of profit or loss of joint 1,279,980.62 1,249,209.43
ventures and associates
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 188,520.19 21,218,838.14
with "-" sign)
Credit impairment loss (loss is listed 771,446.93
with "-" sign)
Asset impairment loss (loss with "-" 1,232,165.37
sign)
Gain/loss on disposal of assets (loss 15,331.98 275,491.34
with "-" sign)
2 Operating profit (loss shall be listed with "-" 75,583,212.34 141,890,653.40
sign)
Add: Non-operating income 599,580.06 61,631.09
Less: Non-operating expenses 146,746.24 60,264.49
3 Gross profit (gross loss shall be filled in with the 76,036,046.16 141,892,020.00
sign "-")
Less: Income tax expenses -1,957,983.03 2,407,968.99
4 Net profit (net loss is listed with "-" sign) 77,994,029.19 139,484,051.01
(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
94 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 77,994,029.19 139,484,051.01
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 2022 H1 2021
1 Cash flows from operating activities:
Proceeds from sale of goods and 1,802,969,150.43 1,550,756,827.80
rendering of services
Net increase in customer deposits
and interbank deposits
Net increase in borrowing from the
central bank
95 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 34,829,359.93 23,924,614.10
refunds
Cash generated from other 35,764,026.73 29,594,701.84
operating activities
Subtotal of cash generated from 1,873,562,537.09 1,604,276,143.74
operating activities
Payments for goods and services 1,185,626,748.22 927,944,794.17
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 338,168,044.20 292,416,955.30
employees
Payments of all types of taxes and 71,822,125.03 44,806,542.67
surcharges
Cash used in other operating 125,694,912.91 133,084,023.35
96 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
activities
Subtotal of cash used in operating 1,721,311,830.36 1,398,252,315.49
activities
Net cash generated from/used in 152,250,706.73 206,023,828.25
operating activities
2 Cash flows from investing activities:
Proceeds from disinvestment 2,960,986,699.67 2,880,334,839.28
Investment income 26,404,419.77 62,687,677.73
Net proceeds from the disposal of 580,757.16 247,765.69
fixed assets, intangible assets, and other
long-lived assets
Disposal of net cash received by
subsidiaries and other business units
Cash generated from other 742,251.94 2,453,179.98
investing activities
Subtotal of cash generated from 2,988,714,128.54 2,945,723,462.68
investing activities
Payments for the acquisition of 58,758,055.34 28,354,847.23
fixed assets, intangible assets, and other
long-lived assets
Payments for investments 2,962,010,158.14 1,717,105,189.38
Net increase in pledged loans
Obtain net cash paid by 139,172,016.05
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing 3,159,940,229.53 1,745,460,036.61
activities
Net cash generated from/used in -171,226,100.99 1,200,263,426.07
investing activities
3 Cash flows from financing activities:
Absorb the cash received by the
investment
Including: the subsidiary
absorbs the cash received from the
investment of minority shareholders
Borrowings raised 236,920,326.91 237,730,647.37
Cash generated from other 657,362,397.48 74,850,615.97
97 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
financing activities
Subtotal of cash generated from 894,282,724.39 312,581,263.34
financing activities
Repayment of borrowings 406,841,266.43 238,444,707.11
Interest and dividends paid 3,152,285.82 3,829,257.01
Including: Interest and
dividends paid to minority shareholders
Cash used in other financing 493,565,716.00 770,560,071.80
activities
Subtotal of cash used in financing 903,559,268.25 1,012,834,035.92
activities
Net cash generated from/used in -9,276,543.86 -700,252,772.58
financing activities
4 Effect of foreign exchange rates -3,328,916.09 -23,436,767.27
changes on cash and cash equivalents
5 Net (decrease)/increase in cash and -31,580,854.21 682,597,714.47
cash equivalents
Add: Cash and cash equivalents, 1,259,303,775.74 860,601,236.78
beginning of the period
6 Cash and cash equivalents, end of the 1,227,722,921.53 1,543,198,951.25
period
6. Parent Company Statement of Cash Flow
Unit: RMB yuan
Item H1 2022 H1 2021
1 Cash flow generated by business
activities:
Cash received from the sale of 175,645,201.33 186,517,079.77
goods and the provision of services
Receipts of taxes and surcharges 10,824,585.72 4,894,157.17
refunds
Cash generated from other 41,727,032.51 101,581,249.76
operating activities
Subtotal of cash generated from 228,196,819.56 292,992,486.70
operating activities
Payments for goods and services 133,586,738.91 128,218,993.82
Cash payments to and on behalf of 47,338,808.49 42,396,474.57
98 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
employees
Payments of all types of taxes and 4,698,999.52 5,067,017.44
surcharges
Cash used in other operating 23,214,510.22 43,563,680.54
activities
Subtotal of cash used in operating 208,839,057.14 219,246,166.37
activities
Net cash generated from/used in 19,357,762.42 73,746,320.33
operating activities
2 Cash flows from investing activities:
Proceeds from disinvestment 1,622,634,482.77 2,038,801,239.59
Investment income 25,484,477.04 79,267,508.64
Net proceeds from the disposal of 23,000.00 443,000.00
fixed assets, intangible assets, and other
long-lived assets
Disposal of net cash received by
subsidiaries and other business units
Cash generated from other 903,000.00 11,701,200.00
investing activities
Subtotal of cash generated from 1,649,044,959.81 2,130,212,948.23
investing activities
Payments for the acquisition of 9,616,254.16 5,065,813.67
fixed assets, intangible assets, and other
long-lived assets
Payments for investments 1,404,898,673.23 890,133,072.92
Obtain net cash paid by 149,040,000.00 100,000,000.00
subsidiaries and other business units
Cash used in other investing 295,510,000.00
activities
Subtotal of cash used in investing 1,563,554,927.39 1,290,708,886.59
activities
Net cash generated from/used in 85,490,032.42 839,504,061.64
investing activities
3 Cash flows from financing activities:
Absorb the cash received by the
investment
Cash received for obtaining loans
Cash generated from other 581,434,806.25 14,343,880.06
99 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
financing activities
Subtotal of cash generated from 581,434,806.25 14,343,880.06
financing activities
Repayment of borrowings
Interest and dividends paid 603,835.52 500,429.47
Cash used in other financing 527,514,138.31 708,837,544.69
activities
Subtotal of cash used in financing 528,117,973.83 709,337,974.16
activities
Net cash generated from/used in 53,316,832.42 -694,994,094.10
financing activities
4 Effect of foreign exchange rates
changes on cash and cash equivalents
5 Net (decrease)/increase in cash and 158,164,627.26 218,256,287.87
cash equivalents
Add: Cash and cash equivalents, 156,610,136.21 126,339,870.71
beginning of the period
6 Cash and cash equivalents, end of the 314,774,763.47 344,596,158.58
period
100 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
7. Consolidated Statements of Changes in Equity
Amount of current period
Unit: RMB yuan
H1 2022
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. On 31 December 2021 1,331,938,167.00 3,238,765,859.94 494,335,503.94 -33,322,662.98 11,252,639.19 51,830,974.45 -424,159,175.27 3,681,970,298.39 171,605,247.28 3,853,575,545.67
Add: Adjustments for
changes in accounting policies
Adjustments for
correction of previous errors
Adjustments for
business combinations involving
entities under common control
Other adjustments
II. On 1 January 2022 1,331,938,167.00 3,238,765,859.94 494,335,503.94 -33,322,662.98 11,252,639.19 51,830,974.45 -424,159,175.27 3,681,970,298.39 171,605,247.28 3,853,575,545.67
III. Changes for the period (“-” 38,844,952.73 215,563,545.78 -11,553,404.31 1,290,379.57 148,199,917.83 -38,781,699.96 59,954,374.92 21,172,674.96
for decrease)
(I) Total comprehensive income -11,553,404.31 148,199,917.83 136,646,513.52 9,981,007.88 146,627,521.40
(II) Owner’s contributions and 13,344,952.73 215,563,545.78 -202,218,593.05 -202,218,593.05
reduction in capital
1. Ordinary shares increased by
101 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
H1 2022
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
owners
2. Capital increased by holders of
other equity instruments
3. Share-based payments included 13,388,065.57 13,388,065.57 13,388,065.57
in equity
4. Others -43,112.84 215,563,545.78 -215,606,658.62 -215,606,658.62
(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
102 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
H1 2022
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
loss
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserve 1,290,379.57 1,290,379.57 1,290,379.57
1. Provision in the period 2,655,989.89 2,655,989.89 2,655,989.89
2. Utilisation in the period -1,365,610.32 -1,365,610.32 -1,365,610.32
(VI) Others 25,500,000.00 25,500,000.00 49,973,367.04 75,473,367.04
IV. On 30 June 2022 1,331,938,167.00 3,277,610,812.67 709,899,049.72 -44,876,067.29 12,543,018.76 51,830,974.45 -275,959,257.44 3,643,188,598.43 231,559,622.20 3,874,748,220.63
Amount of previous period
Unit: RMB yuan
103 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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. On 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 changes
in accounting policies
Adjustments for
correction of previous errors
Adjustments for business
combinations involving entities
under common control
Other adjustments
II. On 1 January 2021 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
III. Changes for the period (“-” for -213,038,790.00 -751,884,748.81 - -20,068,085.91 973,774.84 191,117,520.46 -272,557,269.90 85,795,536.41 -186,761,733.49
decrease) 520,343,059.52
(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 -775,796,249.51 - -468,491,979.99 -468,491,979.99
reduction in capital 520,343,059.52
1. Ordinary shares increased by
owners
2. Capital increased by holders of
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
104 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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
in equity
-212,138,790.00 -778,045,591.31 - -490,188,121.79 -490,188,121.79
4. Others
499,996,259.52
(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
loss
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
105 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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
transferred to retained earnings
6. Others
(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. On 30 June 2021 1,332,088,167.00 3,250,508,313.00 59,060,125.60 -41,996.21 11,031,213.81 51,830,974.45 -700,375,316.60 3,885,981,229.85 158,785,514.96 4,044,766,744.81
8. Company Statement of Changes in Equity
Amount of current period
Unit: RMB yuan
H1 2022
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: Treasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
I. On 31 December 2021 1,331,938,167.00 3,162,960,902.13 494,335,503.94 5,067,104.62 51,830,974.45 -888,576,335.08 3,168,885,309.18
Add: Adjustments
for changes in accounting
106 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
H1 2022
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: Treasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
policies
Adjustments
for correction of previous
errors
Other
adjustments
II. On 1 January 2022 1,331,938,167.00 3,162,960,902.13 494,335,503.94 5,067,104.62 51,830,974.45 -888,576,335.08 3,168,885,309.18
III. Changes for the 12,412,821.98 215,563,545.78 877,492.87 77,994,029.19 -124,279,201.74
period (“-” for decrease)
(I) Total comprehensive 77,994,029.19 77,994,029.19
income
(II) Owner’s 12,412,821.98 215,563,545.78 -203,150,723.80
contributions and
reduction in capital
1. Ordinary shares
increased by owners
2. Capital increased by
holders of other equity
instruments
3. Share-based payments 12,455,934.82 12,455,934.82
included in equity
4. Others -43,112.84 215,563,545.78 -215,606,658.62
107 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
H1 2022
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: Treasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
(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
benefit schemes
transferred to retained
earnings
5. Other comprehensive
income transferred to
108 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
H1 2022
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: Treasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
retained earnings
6. Others
(V) Special reserve 877,492.87 877,492.87
1. Provision in the period 936,757.32 936,757.32
2. Utilisation in the -59,264.45 -59,264.45
period
(VI) Others
IV. On 30 June 2022 1,331,938,167.00 3,175,373,724.11 709,899,049.72 5,944,597.49 51,830,974.45 -810,582,305.89 3,044,606,107.44
Amount of previous period
Unit: RMB yuan
H1 2021
Other equity instruments
Item Other comprehensive Special
Share capital Preference Perpetual Capital surplus Less: Treasury stock Surplus reserves Retained earnings Others Total equity
Others income reserve
shares bonds
I. On 31 December 2020 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
Add: Adjustments for
changes in accounting
policies
109 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Adjustments for
correction of previous errors
Other adjustments
II. On 1 January 2021 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
III. Changes for the period -213,038,790.00 -777,166,786.98 -520,343,059.52 586,670.06 139,484,051.01 -329,791,796.39
(“-” for decrease)
(I) Total comprehensive 139,484,051.01 139,484,051.01
income
(II) Owner’s contributions -213,038,790.00 -777,166,786.98 -520,343,059.52 -469,862,517.46
and reduction in capital
1. Ordinary shares increased
by owners
2. Capital increased by
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
110 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 benefit
schemes transferred to
retained earnings
5. Other comprehensive
income transferred to retained
earnings
6. Others
(V) Special reserve 586,670.06 586,670.06
1. Provision in the period 807,820.75 807,820.75
2. Utilisation in the period -221,150.69 -221,150.69
(VI) Others
IV. On 30 June 2021 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
111 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 accordance 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 2022.
The consolidation scope for consolidated financial statements is determined based on the concept of control. For
details of changes during the period, please refer to Note VIII.
IV. Basis of Preparation of the Financial Statements
112 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 Business Enterprises” or “CAS”).
The financial statements are prepared on a going concern basis.
In the preparation of the financial statements, all items are recorded by using historical cost as the basis of
measurement except for some financial instruments. Impairment allowance is made according to relevant
regulations if the assets are impaired.
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 of
30 June 2022, and the financial performance and the cash flows for the 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. Functional currency
The Group’s functional currency and the currency used in preparing the financial statements were Renminbi. The
amounts in the financial statements were denominated in Renminbi yuan, unless otherwise stated.
4. Business combination
Business combinations are classified into business combinations involving entities under common control and
business combinations 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 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 common
control (including goodwill arising from the acquisition of the merged party by the ultimate controller) are
recognized on the basis of their carrying amounts at the combination date recorded on the financial statements of
the ultimate controlling party. 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.
113 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
4. Business combination (cont’d)
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 recognized 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 recognized 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 values 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 recognized in profit 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 assets 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.
114 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
5. 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.
The excess of current loss attributable to non-controlling shareholders of a subsidiary over their entitlements 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, and cash flows of the acquirees will be recognized 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 statements will be adjusted based on the fair values of the
identifiable assets, liabilities, and contingent liabilities at the acquisition date.
For subsidiaries acquired through combination of entities under common control, the business results and cash flows
of the combined entities are included in the consolidated financial statements from the beginning of the period in
which the combination occurred. When preparing and comparing the consolidated financial statements, the Group
makes adjustments to relevant items of the financial statements of the previous period, deeming the reporting entity
formed through combination as existing since initial implementation of control by the ultimate controlling party.
In the event of the change in one or more elements of control as a result of changes in relevant facts and conditions,
the Group reassesses whether it has control over the investee.
6. 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.
115 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
7. 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 spot
exchange rate of the dates on which transactions occur. At the balance sheet date, foreign currency monetary items
are translated using the spot exchange rate at the balance sheet date. The translation differences arising from the
settlement and foreign currency monetary items are recognized 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 recognized 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 preparing 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 recognized 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 recognized on a pro-rata basis.
Cash flows denominated in foreign currencies and foreign subsidiaries’ cash flows are translated using the average
exchange rate 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.
116 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
8. Financial instruments
Financial instruments refer to the contracts which give rise to a financial asset in one entity and a financial liability
or equity instrument in another entity.
Recognition and derecognition of financial instruments
The Group recognizes 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 derecognized 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 derecognized.
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 recognition of a new liability with any arising differences recognized in
profit or loss.
Conventional dealings in financial assets are recognized or derecognized 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 amortized 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 initial measurement will be based on the
transaction price.
117 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
8. Financial instruments (cont’d)
Classification and measurement of financial assets (cont’d)
For financial assets at fair value through profit or loss, the relevant transaction costs are directly recognized 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 amortized cost
Financial assets fulfilling all of the following conditions are classified as financial assets at amortized 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 amounts based on outstanding principal amounts only.
Interest income from such type of financial assets are recognized 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 recognized 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 amortized 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 subsequently measured at fair value, any changes of which are recognized 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 recognized in profit or loss; for other financial liabilities, the relevant transaction costs are
recognized in their initial recognition amount.
The subsequent measurement of financial liabilities is dependent on its classification:
118 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
8. Financial instruments (cont’d)
Classification and measurement of financial liabilities (cont’d)
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 recognized in current profit or
loss.
Other financial liabilities
Subsequent to initial recognition, these financial liabilities are carried at amortized cost using the effective interest
method.
Impairment of financial instruments
The Group performs impairment treatment on financial assets at amortized cost, debt instruments at fair value
through other comprehensive income and contract assets based on expected credit losses (ECL) and recognizes
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.
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 credit 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 amortized 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.
For the Group’s criteria for judging whether credit risks have significantly increased, the definition of assets
subjected to credit impairment, and assumptions underlying the measurement of expected credit losses, please refer
to Note VIII.3.
119 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
8. Financial instruments (cont’d)
Impairment of financial instruments (cont’d)
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.
Derivative financial instruments
The Group uses derivative financial instruments. Derivative financial instruments are initially recognized 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 recognized 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 derecognized. If the Group retains substantially all the risks and rewards of
ownership of a financial asset, the asset should not be derecognized.
When the Group has neither transferred nor retained substantially all the risks and rewards of ownership of the
financial asset, it may either derecognize the financial asset and recognize any associated assets and liabilities if
control of the financial asset has not been retained; or recognizes the financial asset to the extent of its continuing
involvement in the transferred financial asset and recognizes an associated liability if control has been retained.
Assets formed by the continuing involvement by way of the provision of financial guarantee in respect of the
transferred financial assets shall be recognized 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.
120 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
9. 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 recognized 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 recognized 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 recognized
in profit or loss.
Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the
estimated 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.
121 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
10. 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 recognized 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 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 party, liabilities incurred or assumed by the acquiring party and the fair value of equity securities
issued. Upon disposal of the investment, other comprehensive income recognized 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 recognized 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 recognized 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 investee.
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 recognized as investment income for
the period.
122 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
10. Long-term equity investments (cont’d)
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 influence 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 investment’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 recognized 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 recognized 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, eliminating 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 recognized), 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 obligations to assume additional losses. The Group also adjusts
the carrying amount of long-term equity investments for other changes in owner’s equity of the investees (other
than the net-off of net profits or losses, other comprehensive income and profit distribution 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
recognized 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 recognized 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 transferred to current profit and loss on a pro-rata basis. Equity recognized 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 loss on a pro-rata basis.
123 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
11. Fixed assets
A fixed asset is recognized 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 recognized in the carrying amount of the fixed asset if the above recognition criteria are met,
and the carrying value of the replaced part is derecognized; otherwise, those expenditures are recognized in profit
or loss as incurred.
Fixed assets are initially recognized 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:
Estimated residual Annual
Useful life
value ratio depreciation rate
Buildings and constructions 20-40 years 5.00% 2.38%-4.75%
Machinery 5-18 years 5.00% 5.28%-19.00%
Transportation equipment 5-10 years 5.00% 9.5%-19.00%
Electronic equipment 3-10 years 5.00% 9.5%-31.67%
Office equipment 3-10 years 5.00% 9.5%-31.67%
Other equipment 5-10 years 5.00% 9.5%-19.00%
The Group reviews, at least at each year end, useful lives, estimated residual values and depreciation methods of
fixed assets and makes adjustments if necessary.
12. Construction in progress
Construction in progress is measured at the actual construction expenditures, including necessary project work
expenses incurred 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.
124 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
13. 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.
14. Right-of-use assets
The right-of-use assets of the Group mainly include buildings and vehicles
At the commencement date of the lease, the Group recognizes a right-of-use asset. The cost of the right-of-use asset
comprises: (1) the amount of the initial measurement of the lease liability; (2) any lease payments made at or before
the commencement date less any lease incentives received; (3) any initial direct cost incurred; (4) an estimate of
costs incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located
or restoring the underlying asset to the condition required by the terms and conditions of the lease. The right-of-use
assets are depreciated on a straight-line basis subsequently by the Group. If ownership of the leased asset transfers
to the Group at the end of the lease term, depreciation is calculated using the estimated useful life of the asset.
Otherwise, the right-of-use assets are depreciated over the shorter of the lease term and the estimated useful lives
of the assets.
When the Group remeasures the lease liability at the present value of the changed lease payments and adjusts the
carrying amount of the right-of-use assets accordingly, if the carrying amount of the right-of-use asset is reduced to
zero, and there is a further reduction in the measurement of the lease liability, the Group recognize the remaining
amount of the remeasurement in profit or loss.
15. Intangible assets
Intangible assets are recognized 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 recognized 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 Group. For an intangible asset with no foreseeable limit to the period over which it is expected to bring
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
125 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
15. Intangible assets (cont’d)
Property in land acquired by the Group is normally accounted for as intangible assets. Property in land and buildings
relating 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.
The Group classifies the expenses for internal research and development as research costs and development costs.
All research costs are charged to the current profit or loss as incurred. Expenditure incurred on projects to develop
new products is capitalized 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 economic 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.
126 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
16. Impairment
The Group assesses impairment of assets other than inventories, contract assets and assets related to contract costs,
deferred 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 asset. 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 use 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 cash 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 recognized 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 such 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 recognized impairment losses are not reversed in subsequent periods.
127 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
17. 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
18. Employee benefits
Employee benefits include all kinds of rewards or compensation incurred by the Group in exchange for service
rendered by employees or in the termination of employment, other than share-based payment. Employee benefits
include short-term benefits, retirement benefits, dismission benefits and other long-term employees’ benefits.
Benefits provided by the Group to the spouses, children and dependents of employees and families of deceased
employees are also a part of employee benefits.
Short-term benefits
For accounting periods during which services are rendered by employees, short-term benefits that will incur is
recognized as liability and included in profit and loss or related capital costs.
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 effect (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 recognized 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 recognized as current expenses when: the defined benefit scheme is revised, or relevant
restructuring costs or dismission benefits are recognized by the Group, whichever earlier.
128 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
18. Employee benefits (cont’d)
Retirement benefits (defined benefit schemes) (cont’d)
recognizerecognize
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 recognized 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.
19. Lease liabilities
At the commencement date, the Group measures the lease liability at the present value of the lease payments that
are not paid at that date, except for short-term leases and low-value asset leases. In calculating the present value of
the lease payments, the Group uses the interest rate implicit in the lease as the discount rate. If that rate cannot be
readily determined, the Group uses the lessee’s incremental borrowing rate. The Group calculates the interest
expenses of the lease liability in each period during the lease term using the constant periodic rate of interest, and
recognizes such interest expenses in profit or loss, except those that in the related asset costs as required. Variable
lease payments that are not included in the measurement of the lease assets are recognized in profit or loss as
incurred, except those that shall be included in the related asset costs as required.
After the commencement date, in the event of any change to the substantial constant payments, the estimated
payables of guaranteed residual value, the index or ratio used to determine lease payments, the assessment results
or actual vesting of the purchase option, the renewal option or the termination option, the Group remeasures the
lease liability at the present value of the modified lease payments.
20. Provisions
Other than contingent consideration and assumed contingent liabilities in a business combination not involving
entities under common control, the Group recognizes 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
connection 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.
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
21. Share-based payments
129 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 conditional 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 recognized 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.
22. Revenue generating from contracts with customers
The Group recognizes 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 shall mean the ability to direct the use of the products or the provision of the services
and receive substantially all economic benefits derived 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 recognizes 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 title 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 services. As the customer is able to forthwith obtain and consume the economic benefits brought by the
Group’s contractual performance when 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 recognized on each
balance sheet date according to the progress of installation.
130 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
22. Revenue generating from contracts with customers (cont’d)
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 difference between such transaction price and contract consideration is amortized 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 services. 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.20. 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.
Principal/agent
When the Group obtains control of trade goods or services from a third party and then transfers it to a customer, or
has the ability to direct the third party to provide the service to the customer on the Group’s behalf, the Group is
entitled to determine the transaction price of the goods or services by itself, i.e., the Group controls the trade goods
or services before they are transferred to the customer. Thus, the Group is a principal and recognizes revenue in
the gross amount of consideration received or receivable. Otherwise, the Group is an agent and recognizes revenue
in the amount of any fee or commission to which it expects to be entitled from the customer. The amount is the net
amount of the gross consideration received or receivable after paying the other party the consideration received in
exchange for the goods or services to be provided by that party.
23. Contract assets and contract liabilities
The Group presents contract assets or contract liabilities on the balance sheet according to the relationship between
contractual performance obligations and customer payments.
Contract assets
Contract assets are the right to receive consideration following the transfer of products or services to customers
which is dependent on factors other than the passage of time.
For details of the Group’s determination and accounting treatment of expected credit losses from contract assets,
please refer to Note III.8.
131 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
23. Contract assets and contract liabilities (Cont’d)
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.
24. Assets relating to contract cost
The Group’s assets relating to contract costs include the contract acquisition costs and contract performance costs.
The costs are presented in inventory, other current assets or other non-current assets based on liquidity of the assets.
Where the Group expects the incremental costs for acquiring a contract to be recoverable, such contract acquisition
costs are recognized as an asset (unless the amortisation period of the asset is not more than 1 year).
Costs incurred by the Group for the performance of a contract are recognized as an asset as contract performance
costs if they do not fall under the scope of the relevant standards for inventories, fixed assets or intangible assets
but meet all the following conditions:
（1） they are directly related to a current or anticipated contract, including direct labour, direct materials,
manufacturing expenses (or similar expenses), to be borne by customers as specifically stipulated, and
otherwise incurred solely in connection with the contract;
（2） they will increase the resources to be utilized in the Company’s future performance of its contractual
obligations;
（3） they are expected to be recoverable.
25 Government grants
Government grants are recognized 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 fair 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 formation 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 recognized as income-
related government grants.
132 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
25. Government grants (cont’d)
Government grants relating to income and applied to make up for related costs or losses in future periods shall be
recognized as deferred income, and shall be recognized in profit or loss of the period for which related costs or loss
are recognized. Government grants specifically applied for the reimbursement of incurred related costs and expenses
shall be directly recognized in profit or loss.
Government grants relating to assets shall offset the carrying amount of related assets, or be recognized 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 recognized 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 profit or
loss.
26. Income tax
Income taxes include current and deferred tax. Income taxes are recognized 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 recognizes 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 recognized as assets or liabilities where the tax base can be
calculated according to the relevant tax regulations.
Deferred tax liabilities are recognized 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.
133 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
26. Income tax (cont’d)
Deferred tax assets are recognized 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, and the carryforward of unused tax credits and unused tax losses can be utilized 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 recognized 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 rates that are expected to apply to the period when the asset is realized or the liability is settled, and reflects the
tax consequences that would 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 utilized. Unrecognized deferred tax assets are reassessed at the end of each reporting period and are
recognized to the extent that it has become probable 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 taxable entity concerned intends either to settle current income tax liabilities and
assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
134 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
27. Leases
Identification of leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of
time, the Group assesses whether, throughout the period of use, the customer has both of the right to obtain
substantially all of the economic benefits from use of the identified asset and the right to direct the use of the
identified asset.
Identification of separate lease components
For a contract that contains multiple separate lease components, the Group separates the contract and accounts for
each separate lease component. The right to use an underlying asset is a separate lease component if both:
(1) The lessee can benefit from use of the underlying asset either on its own or together with other resources that
are readily available to the lessee;
(2) The underlying asset is neither highly dependent on, nor highly interrelated with, the other underlying assets in
the contract.
Assessment of lease term
The lease term is the non-cancellable period for which the Group has the right to use an underlying asset. The Group
has an option to extend the lease, that is, the Group has the right to extend the lease, and is reasonably certain to
exercise that option, the lease term also includes periods covered by an option to extend the lease. The Group has
an option to terminate the lease, that is, the Group has the right to terminate the lease, but is reasonably certain not
to exercise that option, the lease term includes periods covered by an option to terminate the lease. The Group
reassesses whether it is reasonably certain to exercise an extension option, purchase option, or not to exercise a
termination option, upon the occurrence of either a significant event or a significant change in the circumstances
that is within the control of the Group and affect whether the Group is reasonably certain to exercise the
corresponding option.
As lessee
For general accounting practice of the Group as a lessee, please see Items 14 and 19 of Note III.
Lease modifications
A change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions
of the lease, for example, adding or terminating the right to use one or more underlying assets, or extending or
shortening the contractual lease term.
The Group accounts for a lease modification as a separate lease if both:
135 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
27. Leases (Cont’d)
(1) the modification increases the scope of the lease by adding the right to use one or more underlying assets;
(2) the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase
in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular
contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease modification
the Group remeasures the lease liability by discounting the revised lease payments using a revised discount rate.
The revised discount rate is determined as the interest rate implicit in the lease for the remainder of the lease term,
if that rate can be readily determined, or the lessee’s incremental borrowing rate at the effective date of the
modification, if the interest rate implicit in the lease cannot be readily determined.
For a lease modification that is not accounted for as a separate lease, the Group accounts for the remeasurement of
the lease liability by:
(1) decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease for
lease modifications that decrease the scope of the lease. The Group recognizes in profit or loss any gain or loss
relating to the partial or full termination of the lease.
(2) making a corresponding adjustment to the right-of-use asset for all other lease modifications.
Short-term leases and leases of low-value assets
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, and does not
contains any purchase option. The Group does not recognize the right-of-use assets and lease liabilities for buildings
short-term leases. The Group recognizes lease payments on short-term leases and leases of low-value assets in the
related asset costs or profit or loss on a straight-line basis over the lease term.
As a lessor
A lease that transfers substantially all the risks and rewards incidental to ownership of a leased asset on its
commencement date is a finance lease. And all the other leases are operating leases.
As a lessor of operating leases
Rental income of operating leases is recognized in current profit or loss over the respective periods during the lease
term on a straight-line basis, while variable lease payment not included in lease receipts is charged to profit or loss
as and when incurred.
For any modification to an operating lease, the Group treats it as a new lease from the effective date of the
modification, and the received or receivable lease payments related to the lease prior to the modification are
treated as lease payments of the new lease.
136 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
28. 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.
29. Profit distribution
The Company’s cash dividends are recognized as liabilities upon the approval by the general meeting.
30. 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.
31. Put option related to non-controlling interests
In the process of acquiring majority equity of subsidiaries, the Group grants to minority shareholders the option to
sell the shares of subsidiaries held by them to the Group (put option). The Group recognizes the shares of
subsidiaries held by minority shareholders as non-controlling interests in its consolidated financial statements; for
the put option, the Group undertakes the obligation to redeem the shares of the subsidiaries held by minority
shareholders in cash. The Group removes the present value of the amount payable to redeem the put option from its
equity (excluding non-controlling interests) and classifies it as financial liability, which is remeasured in subsequent
periods at the present value of the the amount payable to redeem the put option and recognized in profit or loss.
32. Fair value measurement
At each balance sheet date, the Group measures the fair value of derivative financial instruments and equity
instrument investments. Fair value means the price receivable from the disposal of an asset or required to be paid
for the transfer of a liability in an orderly transaction incurred 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 favourable 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 measurement date. The Group adopts assumptions used by market participants when they price the asset or
liability with the aim of maximising its economic benefits.
137 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
32. Fair value measurement (cont’d)
The Group adopts valuation techniques that are appropriate in the current circumstances and supported by sufficient
usable data and other information. Observable input will be used first and foremost. Unobservable input will only
be used when it is not possible or practicable to obtain observable input.
The fair value hierarchy to which an asset or liability measured or disclosed in the financial statements at fair value
will be determined on the basis of the lowest level of input which is significant for the fair value measurement as a
whole. Input at the first level represents unadjusted quoted prices in an active market for the acquisition of the same
asset or liability on the measurement date. Input at the second level represents directly or indirectly observable
assets or liabilities apart from input at the first level. Input at the third level represents unobservable input for the
asset or liability.
At each balance sheet date, the Group reassesses assets and liabilities measured at fair value on an ongoing basis
recognized in the financial statements to determine whether the level of fair value measurement should be changed.
33. Significant accounting judgements and estimates
The preparation of financial statements requires judgement and estimation of the management. Such judgement and
estimation will affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of
contingent liabilities as at the balance sheet date. However, the consequence arising from the uncertain nature of
such estimation may result in significant adjustment to the carrying value of the asset or liability affected in the
future.
Judgement
In the process of applying the Group’s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognized in the financial statements:
Determination of standalone contractual performance obligations
The intelligent packaging equipment (printers and corrugators) business of the Group includes four kinds of product
or service commitments, i.e. the sale, installation, transportation and insurance services of machinery. As the
customer can benefit from the individual use of the four kinds of products or services or their use together with
other readily available resources and such product or service commitments are distinctly separable from other
products or service commitments, the aforesaid product or service commitments constitute standalone contractual
performance obligations respectively.
138 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
33. Significant accounting judgements and estimates (cont’d)
Judgement (cont’d)
Business model
The classification of financial assets at initial recognition is dependent on the Group’s business model for managing
the assets. Factors considered by the Group in judging the business model include enterprise valuation, the method
of reporting the results of financial assets to key management members, risks affecting the results of financial assets
and the method for managing such risks, as well as the form of remuneration received by the management personnel
of the businesses concerned. In assessing whether the business model is aimed at receiving contract cash flow, the
Group is required to analyse and exercise judgment in respect of the reasons, timing, frequency, and values of any
disposals prior to maturity.
Characteristics of contract cash flow
The classification of financial assets at initial recognition is dependent on the characteristics of the contract cash
flow of such type of financial assets. Judgement is required to determine whether the contract cash flow represents
interest payment in relation to principal amounts based on outstanding principal amounts only, including judgement
of whether it is significantly different from the benchmark cash flow when assessing modifications to the time value
of currencies, and judgement of whether the fair value of early repayment features is minimal where the financial
assets include such early repayment features.
Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within subsequent financial years, are discussed below.
Impairment of financial instruments and contract assets
The Group has adopted the expected credit loss model to evaluate the impairment of financial instruments and
contract assets. The application of the expected credit loss model requires significant judgement and estimates and
the consideration of all reasonable and soundly based information, including forward-looking information. In
making such judgement and estimates, the Group estimates the projected movements of the debtor’s credit risk
according to past repayment records, economic policies, macro-economic indicators, and industry risks. Different
estimates may affect impairment allowances, and established impairment allowances may not equal the actual
impairment loss amount in the future.
139 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
33. Significant accounting judgements and estimates (cont’d)
Estimation uncertainty (cont’d)
Impairment of non-current assets other than financial assets (exclusive of goodwill)
The Group assesses at each balance sheet date whether there is an indication that a non-current asset other than
financial assets may be impaired. For an intangible asset with an indefinite useful life, in addition to the annual
impairment test, it is also tested when there is an indication that it may be impaired. Non-current assets other than
financial assets are tested for impairment when there is an indication that the carrying amount is irrecoverable.
Where the carrying amount of an asset or an asset group exceeds its recoverable amount—the higher of the asset or
asset group’s fair value less costs to sell and its present value of estimated future cash flows, it is considered
impaired. The net amount of the fair value less costs to sell is determined based on the price of a similar asset’s
sales contract in a fair transaction or the observable market price less the incremental cost directly attributable to
the disposal of the asset. When estimating the present value of future cash flows, the management must choose a
proper discount rate.
Impairment of goodwill
Goodwill must be tested for impairment at least annually. It requires estimating the present value of future cash
flows of an asset group or asset group portfolio allocated with goodwill. When estimating the present value of future
cash flows, the Group needs to estimate future cash flows generating from the asset group or asset group portfolio,
and at the same time choose a proper discount rate to determine the present value of future cash flows. For details,
see Note V.19.
Fair value of unlisted equity investments
The unlisted equity investments have been valued based on the expected cash flows discounted at current rates
applicable for items with similar terms and risk characteristics. This valuation requires the Group to make
estimates about expected future cash flows, credit risk, volatility, and discount rates, and hence they are subject to
uncertainty.
Deferred tax assets
Deferred tax assets are recognized for all unused tax losses, to the extent that it is likely that taxable profit will be
available to utilize these unused tax losses. Significant judgments are needed from management to estimate the
timing and amount of taxable profit in the future, with tax planning strategies, to determine the amount of the
deferred tax assets that should be recognized.
Lessee’s incremental borrowing rate
If the interest rate implicit in the lease cannot be readily determined, the Group measures the lease liability at the
present value of the lease payments that are not paid at that date. The Group discounted the lease payments using
the lessee’s incremental borrowing rate. The Group determines the incremental borrowing rate based on the
economic environment by reference to the observable interest rate. Then the Group adjusts the reference interest
rate based on its own circumstances, underlying assets, lease terms and amounts of lease liabilities to determine the
applicable incremental borrowing rate.
140 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
33. Significant accounting judgements and estimates (cont’d)
Provisions
The Group estimates and makes corresponding provision for product quality guaranty according to contract terms,
existing knowledge, and past experience. When such contingencies have formed a present obligation and it is
probable that an outflow of economic benefits from the Group will be required to settle the obligation, the Group
recognizes the contingencies as provisions based on the best estimate of the expenditure required to settle the related
present obligation. The recognition and measurement of provisions largely depend on the judgment of management.
In the process of making judgment, the Group is required to assess the risks, uncertainties, time value of money and
other factors related to such contingencies.
Provisions (cont’d)
The Group will undertake the provisions for post-sale quality maintenance provided to customers for the sale,
maintenance, and renovation of the sold goods. The provisions have been made taking into account the Group’s
recent data of maintenance experience, and taking into account the risks, uncertainties and other factors related to
maintenance matters. Any increase or decrease in this provision may affect the profit and loss in future years.
VI. Taxation
1. Principal tax items and tax rates
Value-added tax (VAT) – The output tax of the taxable income is calculated at the rate of 13% and 6% and
VAT is levied according to the difference after deducting the input tax which is
allowed to be deducted in the current period.
City maintenance
and construction tax – Levied at 7% of the turnover tax actually paid
Education surcharge – Levied at 3% of the turnover tax actually paid
Local education
Surcharge – Levied at 2% of the turnover tax actually paid
Corporate income tax – Corporate income tax of the Group’s subsidiaries located in Mainland China shall
be levied at 25% of the taxable income (except for the preferential taxation as
described in Note IV 2). Subsidiaries located in Hong Kong shall calculate and pay
the corporate income tax at 16.5% of the taxable income, and subsidiaries registered
overseas shall apply the corporate income tax rate as required by the local tax law.
The details are as follows:
Name of subsidiaries Income tax rate
Dong Fang Precision (Netherland) Cooperatief U.A.（“Dongfang Precision 20%
(Netherland)”）
Fosber S.p.A.（“Fosber Group”） 24%
Fosber America, Inc.（“Fosber America”） 21%
EDF Europe s.r.l.（“EDF”） 24%
Tirua Group Industrial, S.L.（“Tirua Group”） 28%
141 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Tirua America inc. (“Tirua America”) 21%
Quantum Corrugated S.r.l. ( QCorr) 24%
Tirua S.L.U. 28%
Tratatamientos Industriales Tirua S.A.U. 28%
Tirua France SARL 15%
SCI Candan 15%
Property tax – Ad valorem tax: levied at 1.2% of the remaining value after deducting 30% from the original
value of the property; Tax levied from rent: levied at 12% of the rental income.
2. Tax concessions
On 9 December 2020, 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.: GR202044007667) jointly issued by the above authorities, with a validity
of three years, during which the Company paid the corporate income tax at a reduced rate of 15%.
Suzhou Parsun Power Machine Co., Ltd. ("Parsun Power"), a subsidiary of the 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 Provincial 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 20
December 2021 and obtained a High-tech Enterprise Certificate (certificate no.: GR202144003984) 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%.
Shenzhen Wonder Printing System Co., Ltd. ("Shenzhen Wonder") , a subsidiary of the Company, was approved
and granted by the Shenzhen Science and Technology Innovation Committee, Shenzhen Finance Bureau, and
Shenzhen Tax Service, State Taxation Administration the High-Tech Enterprise Certificate (certificate No.:
GR201944204259) on 9 December 2019, which is valid for three years. During the period of validity, the enterprise
income tax is calculated and paid at a reduced tax rate of 15%.
VII. Notes to the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB yuan
Item Closing balance Opening balance
Cash on hand 439,819.27 233,281.32
142 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Cash at banks 1,158,706,979.62 999,389,151.51
Other cash balances 83,257,108.07 664,713,906.52
Total 1,242,403,906.96 1,664,336,339.35
Of which: Total amount overseas 509,500,925.79 456,521,434.93
Total restricted amount as
14,680,985.43 405,032,563.61
collateral, pledge or frozen
Other information:
The fund deposited abroad with restrictions on repatriation was equivalent to RMB6,690,290.20 (31 December 2021:
RMB16,374,076.37).
Current bank deposits earn interest income based on interest rates for current deposits. The period for short-term time deposits is usually
7 days, based on the Group’s cash requirement. The short-term time deposits earn interest income based on the corresponding interest
rates for time deposits.
2. Financial assets held for trading
Unit: RMB yuan
Item Closing balance Opening balance
Financial assets at fair value through
830,381,698.55 788,185,521.57
profit or loss
Of which:
Investments in trust products 3,586,206.91 6,631,573.01
Funds management plans 504,021,330.29 628,007,924.74
Derivative financial assets 12,470,814.57 12,936,500.63
Investments in bank’s wealth
83,553,882.51 140,609,523.19
management products
Stock investments 226,749,464.27
Of which:
Total 830,381,698.55 788,185,521.57
Other information:
3. Notes receivable
(1) Notes receivable by type
Unit: RMB yuan
Item Closing balance Opening balance
143 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Bank acceptance notes 23,793,263.47 13,272,025.04
Total 23,793,263.47 13,272,025.04
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 4,440,690.00
Total 4,440,690.00
4. Accounts receivable
(1) Accounts receivable by type
Unit: RMB yuan
Closing balance Opening balance
Gross amount Allowance Gross amount Allowance
Type Allowan Allowan
Carrying Carrying
Percenta ce Percenta ce
Amount Amount amount Amount Amount amount
ge percenta ge percenta
ge ge
Account
s
receivab
le for
which
the 2,488,10 2,488,10 7,038,18 7,038,18
0.32% 100.00% 0.00 0.92% 100.00% 0.00
allowanc 0.00 0.00 0.40 0.40
es are
establish
ed
individu
ally
Of
which:
Account
s
2,488,10 2,488,10 7,038,18 7,038,18
receivab 0.32% 100.00% 0.00 0.92% 100.00% 0.00
0.00 0.00 0.40 0.40
le which
are
144 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
substanti
al
individu
ally and
for
which
the
allowanc
es are
establish
ed
individu
ally
Account
s
receivab
le for
which
776,889, 23,351,1 753,538, 760,325, 19,189,9 741,135,
the 99.68% 3.01% 99.08% 2.52%
711.30 39.42 571.88 577.49 29.40 648.09
allowanc
es are
establish
ed by
group
Of
which:
Account
s
receivab
le for
which
the
allowanc
es are 776,889, 23,351,1 753,538, 760,325, 19,189,9 741,135,
99.68% 3.01% 99.08% 2.52%
establish 711.30 39.42 571.88 577.49 29.40 648.09
ed by
group
with
similar
credit
risk
characte
ristics
779,377, 25,839,2 753,538, 767,363, 26,228,1 741,135,
Total 100.00% 100.00%
811.30 39.42 571.88 757.89 09.80 648.09
Accounts receivable for which the allowances are established individually:
145 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Unit: RMB yuan
Closing balance
Entity
Gross amount Allowance Allowance percentage Reason for allowance
Customer’s inability to
Customer 1 641,600.00 641,600.00 100.00% settle the amount due
Customer’s inability to
Customer 2 608,800.00 608,800.00 100.00% settle the amount due
Customer’s inability to
Customer 3 15,700.00 15,700.00 100.00% settle the amount due
Customer’s inability to
Customer 4 939,000.00 939,000.00 100.00% settle the amount due
Customer’s inability to
Customer 5 283,000.00 283,000.00 100.00% settle the amount due
Total 2,488,100.00 2,488,100.00
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) 672,268,861.95 9,563,198.25 1.42%
1-2 years (including 2 years) 78,122,315.49 2,612,864.58 3.34%
2-3 years (including 3 years) 12,762,914.51 845,680.95 6.63%
3-4 years (including 4 years) 9,087,177.45 5,797,265.03 63.80%
4-5 years (including 5 years) 617,403.10 501,091.81 81.16%
Over 5 years 4,031,038.80 4,031,038.80 100.00%
Total 776,889,711.30 23,351,139.42
Grouping basis:
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss, please disclose
allowance information as other receivables.
□ Applicable Not applicable
By aging:
Unit: RMB yuan
Aging Closing balance
Within 1 year (inclusive) 672,268,861.95
1-2 years 78,122,315.49
2-3 years 12,762,914.51
Over 3 years 16,223,719.35
3-4 years 9,087,177.45
146 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
4-5 years 1,556,403.10
Over 5 years 5,580,138.80
Total 779,377,811.30
(2) Allowances established or reversed in the current period
Allowances in the current period:
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Allowances for
doubtful
26,228,109.80 2,543,603.49 4,336,799.37 -642.75 1,403,682.75 25,839,239.42
accounts
receivable
Total 26,228,109.80 2,543,603.49 4,336,799.37 -642.75 1,403,682.75 25,839,239.42
Of which, substantial reversed amounts of allowances in the current period:
Unit: RMB yuan
Entity Reversed amount Way of recovery
(3) Top five entities with respect to accounts receivable
Unit: RMB yuan
Closing balance of accounts As a % of the closing balance Closing balance of
Entity
receivable of total accounts receivable allowances
Customer 6 55,517,964.76 7.12% 484,398.46
Customer 7 37,041,130.82 4.75% 245,793.50
Customer 8 30,111,463.29 3.86% 411,989.27
Customer 9 27,906,402.52 3.58% 189,899.35
Customer 10 20,244,849.70 2.60% 87,964.62
Total 170,821,811.09 21.91%
5. Receivables financing
Unit: RMB yuan
Item Closing balance Opening balance
Bank acceptance notes 32,869,739.53 30,692,449.25
Total 32,869,739.53 30,692,449.25
Changes in receivables financing and in their fair value in the current period:
□ Applicable Not applicable
147 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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
Other information:
Notes receivable that were endorsed or discounted but undue on the balance sheet date at the period-end:
Closing balance Opening balance
Item
Derecognized Un-derecognized Derecognized Un-derecognized
Bank acceptance notes 4,706,573.99 24,598,786.91
6. Prepayments
(1) Prepayments by aging
Unit: RMB yuan
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 41,597,831.49 97.14% 33,901,158.84 99.19%
1-2 years 961,965.43 2.25% 38,710.83 0.11%
2-3 years 162,708.25 0.38% 144,972.14 0.42%
Over 3 years 99,065.06 0.23% 92,960.55 0.27%
Total 42,821,570.23 34,177,802.36
(2) Top five entities with respect to prepayments
The closing balance of total prepayments to the top five entities amounted to RMB16,641,062.27, accounting for 38.86% of the closing
balance of the total prepayments.
Other information：
7. Other receivables
Unit: RMB yuan
Item Closing balance Opening balance
Other receivables 82,380,620.44 71,363,166.84
Total 82,380,620.44 71,363,166.84
148 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
(1) Other receivables
1) Other receivables by nature
Unit: RMB yuan
Nature Closing gross amount Opening gross amount
Amount for transfer of equity
investments 36,794,100.00 37,903,425.00
Prepaid service charges 10,716,133.42 10,386,867.47
Security deposits 13,524,732.95 5,452,788.82
Export tax refunds 4,363,961.18 912,287.93
Employee loans and petty cash 3,966,542.94 4,537,207.00
Others 17,981,688.66 17,457,275.22
Total 87,347,159.15 76,649,851.44
2) Allowances
Unit: RMB yuan
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Allowances 12-month expected Total
credit loss (without credit loss (with credit
credit loss
credit impairment) impairment)
Balance as at 1 January
4,786,684.60 500,000.00 5,286,684.60
2022
Balance as at 1 January
2022 in the current
period
Established in the
3,182.86 3,182.86
current period
Written off in the
299,132.36 299,132.36
current period
Other changes -24,196.40 -24,196.40
Balance as at 30 June
4,466,538.70 500,000.00 4,966,538.70
2022
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) 43,744,018.73
1-2 years 3,416,388.16
149 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
2-3 years 2,086,469.79
Over 3 years 38,100,282.47
3-4 years 37,007,649.58
4-5 years 226,236.64
Over 5 years 866,396.25
Total 87,347,159.15
3) Allowances established or reversed in the current period
Allowances in the current period:
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Allowances for
doubtful other 5,286,684.60 3,182.86 299,132.36 -24,196.39 4,966,538.71
receivables
Total 5,286,684.60 3,182.86 299,132.36 -24,196.39 4,966,538.71
Of which, substantial reversed amounts of allowances in the current period:
Unit: RMB yuan
Entity Reversed amount Way of recovery
4) 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
Entity 1 transfer of equity 36,794,100.00 3-4 years 42.12% 1,843,534.11
investments
Entity 2 Security deposits 5,256,300.00 Within 1 year 6.02%
Entity 3 Export tax refunds 4,363,961.18 Within 1 year 5.00%
Litigation funds
Entity 4 2,953,327.50 Within 1 year 3.38%
receivable
Entity 5 Security deposits 1,630,000.00 2-3 years 1.87%
150 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Total 50,997,688.68 58.39% 1,843,534.11
8. Inventories
Is the Company subject to the disclosure requirements for the real estate industry?
No.
(1) Inventories by type
Unit: RMB yuan
Closing balance Opening balance
Inventory Inventory
valuation valuation
allowances or allowances or
Item impairment Carrying impairment Carrying
Gross amount Gross amount
allowances for amount allowances for amount
contract contract
performance performance
costs costs
Raw materials 501,146,269.47 16,891,701.43 484,254,568.04 365,907,967.74 9,445,201.52 356,462,766.22
Work-in-
551,830,402.55 16,439,086.11 535,391,316.44 332,359,371.92 16,467,899.02 315,891,472.90
progress
Finished goods 86,332,716.64 3,817,670.00 82,515,046.64 80,356,852.12 7,117,802.59 73,239,049.53
Product
deliveries 57,616,500.58 57,616,500.58 48,592,282.34 48,592,282.34
Semi-finished
goods 18,670,977.32 838,463.25 17,832,514.07 72,050,412.10 1,004,893.76 71,045,518.34
Materials
consigned for 2,942,640.09 2,942,640.09 2,048,924.14 2,048,924.14
processing
1,218,539,506. 1,180,552,585.
Total 37,986,920.79 901,315,810.36 34,035,796.89 867,280,013.47
65 86
(2) Inventory valuation allowances and impairment allowances for contract performance costs
Unit: RMB yuan
Increase in the current period Decrease in the current period
Opening
Item Reversed or Closing balance
balance Established Others Others
written off
Raw materials 9,445,201.52 6,557,698.75 2,057,250.22 1,168,449.06 16,891,701.43
Work-in-
16,467,899.02 28,812.91 16,439,086.11
progress
Finished goods 7,117,802.59 3,300,132.59 3,817,670.00
Semi-finished
1,004,893.76 166,430.51 838,463.25
goods
151 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Total 34,035,796.89 6,557,698.75 2,057,250.22 4,635,012.16 28,812.91 37,986,920.79
9. Contract assets
Unit: RMB yuan
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Contract assets 6,212,959.35 6,212,959.35 25,144,462.49 730,344.85 24,414,117.64
Total 6,212,959.35 6,212,959.35 25,144,462.49 730,344.85 24,414,117.64
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 Reversed in the current Written off/charged off
Item Reason
current period period in the current period
Impairment allowances
730,344.85
for contract assets
Total 730,344.85 ——
Other information:
10. Current portion of non-current assets
Unit: RMB yuan
Item Closing balance Opening balance
Current portion of long-term receivables 1,878,250.00 4,595,000.00
Current portion of large-amount deposit
103,790,000.00
certificates
Current portion of long-term security
305,225,000.00
deposits
Total 307,103,250.00 108,385,000.00
11. Other current assets
Unit: RMB yuan
Item Closing balance Opening balance
152 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Input value-added tax (VAT) to be
565,505.37 3,358,040.70
deducted
Overpaid VAT 31,198,839.43 18,681,339.03
Tax repayments 8,012,965.14 8,202,256.30
Others 1,778,802.53 1,882,370.96
Total 41,556,112.47 32,124,006.99
Other information：
12. Long-term receivables
(1) Particulars about long-term receivables
Unit: RMB yuan
Closing balance Opening balance Range of
Item Gross Impairment Carrying Gross Impairment Carrying discount
amount allowance amount amount allowance amount rates
Amounts
receivable by
installment 143,750.00 143,750.00
for selling
goods
Total 143,750.00 143,750.00
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
Openin Return Closing
Closing
g on Adjust balance
Declare balance
balance Additio Reduce investm ment to Impair of
Investe Other d cash (carryin
(carryin nal d ent other ment impair
e equity dividen Others g
g investm investm under compre allowan ment
changes ds or amount
amount ent ent the hensive ce allowan
profit )
) equity income ce
method
1. Joint ventures
2. Associates
153 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Jaten 74,780, 1,279,9 76,060,
Robot 345.62 80.62 326.24
Talleres 1,593,3 18,514. 1,611,8
Tapre 82.09 31 96.40
Nanjing 8,403,8 8,403,8
Profeta 68.96 68.96
Subtota 84,777, 1,279,9 18,514. 86,076,
l 596.67 80.62 31 091.60
84,777, 1,279,9 18,514. 86,076,
Total
596.67 80.62 31 091.60
Other information
14. Other non-current financial assets
Unit: RMB yuan
Item Closing balance Opening balance
Financial assets at fair value through
269,800,550.62 162,523,519.41
profit or loss
Total 269,800,550.62 162,523,519.41
Other information：
15. Fixed assets
Unit: RMB yuan
Item Closing balance Opening balance
Fixed assets 540,843,950.15 544,180,159.09
Total 540,843,950.15 544,180,159.09
(1) Particulars about fixed assets
Unit: RMB yuan
Office
equipment/electron
Buildings and Transportation
Item Machinery ic Total
constructions equipment
equipment/other
equipment
I. Gross amount
1. Opening
574,983,938.89 448,050,277.32 30,835,181.82 57,871,455.89 1,111,740,853.92
balance
2. Increase in 549,168.29 11,576,446.35 5,110,267.10 3,557,374.35 20,793,256.09
154 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
the current period
(1) Purchases 549,168.29 5,901,881.37 3,598,854.20 3,026,335.41 13,076,239.27
(2) Transfers
from construction 1,543,375.69 1,543,375.69
in progress
(3) Increase
in business 4,131,189.29 1,307,079.90 66,669.99 5,504,939.18
combination
(4) Effect of
exchange rate 204,333.00 464,368.95 668,701.95
movements
3. Decrease in
957,973.31 8,844,864.39 1,206,753.93 2,402,380.83 13,411,972.46
the current period
(1) Disposal
1,602,661.81 1,206,753.93 2,402,380.83 5,211,796.57
or retirement
(2)
Transferred out in
disposal of
subsidiary
(3) Effect of
exchange rate 957,973.31 7,242,202.58 8,200,175.89
movements
4. Closing
574,575,133.87 450,781,859.28 34,738,694.99 59,026,449.41 1,119,122,137.55
balance
II. Accumulated
depreciation
1. Opening
179,915,645.47 336,782,386.13 19,027,736.61 31,834,926.62 567,560,694.83
balance
2. Increase in
8,032,984.11 9,365,846.49 1,606,912.19 3,856,498.25 22,862,241.04
the current period
(1) Provision 8,032,984.11 9,365,846.49 1,500,790.02 3,621,232.93 22,520,853.55
(2) Increase
in business
combination
(3) Effect of
exchange rate 106,122.17 235,265.32 341,387.49
movements
3. Decrease in
1,084,653.99 8,088,237.41 2,132,913.53 838,943.54 12,144,748.47
the current period
(1) Disposal 1,454,036.81 2,132,913.53 838,943.54 4,425,893.88
155 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
or retirement
(2)
Transferred out in
disposal of
subsidiary
(3) Effect of
exchange rate 1,084,653.99 6,634,200.60 7,718,854.59
movements
4. Closing
186,863,975.59 338,059,995.21 18,501,735.27 34,852,481.33 578,278,187.40
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
or retirement
(2) Effect of
exchange rate
movements
4. Closing
balance
IV. Carrying
amount
1. Closing
387,711,158.28 112,721,864.07 16,236,959.72 24,173,968.08 540,843,950.15
carrying amount
2. Opening
395,068,293.42 111,267,891.19 11,807,445.21 26,036,529.27 544,180,159.09
carrying amount
16. Construction in progress
Unit: RMB yuan
156 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Item Closing balance Opening balance
Construction in progress 36,036,409.77 12,298,259.58
Total 36,036,409.77 12,298,259.58
(1) Particulars about construction in progress
Unit: RMB yuan
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Plants and
buildings 34,132,661.09 34,132,661.09 11,582,347.78 11,582,347.78
Equipment
installation 1,903,748.68 1,903,748.68 715,911.80 715,911.80
Total 36,036,409.77 36,036,409.77 12,298,259.58 12,298,259.58
(2) Changes in substantial construction in progress in the current period
Unit: RMB yuan
Transf Cumul Of Interes
erred Other ative Cumul which: t
Increas
Openi to decrea Closin project ative Capital capital
e in Project Fundin
ng fixed ses in g invest capital ized ization
Project Budget the progre g
balanc assets the balanc ment ized interes rate for
current ss source
e in the current e as a % interes t in the the
period
current period of the t current current
period budget period period
Fosber
-plant 204,64 5,015, 108,99 4,874. 5,106,
Other
constr 6.15 646.12 4.75 96 422.56
uction
Dongf
ang
Precisi
7,759, 2,035, 2,884, 4,919,
on - Other
142.53 342.08 062.59 404.67
plant
constr
uction
Yingli
an- 50,000 14,423 22,972
8,548,
plant ,000.0 ,417.7 ,116.8 Other
699.09
constr 0 9 8
uction
1,509, 2,963, 1,434, 3,038,
Others Other
572.26 274.34 380.94 465.66
57,759 12,298 25,286 36,036
1,543, 4,874.
Total ,142.5 ,259.5 ,400.8 ,409.7
375.69 96
3 8 4 7
157 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
17. Right-of-use assets
Unit: RMB yuan
Item Buildings and constructions Transportation equipment Total
I. Gross amount
1. Opening balance 86,255,355.01 10,568,691.42 96,824,046.43
2. Increase in the current
7,740,282.89 285,155.72 8,025,438.61
period
(1) Increase in
1,659,465.12 1,659,465.12
the current period
(2) Increase in
6,080,817.77 6,080,817.77
business combination
(3) Effect of
285,155.72 285,155.72
exchange rate movements
3. Decrease in the current
1,733,404.64 1,733,404.64
period
Effect of exchange rate
1,733,404.64 1,733,404.64
movements
4. Closing balance 92,262,233.26 10,853,847.14 103,116,080.40
II. Accumulated depreciation
1. Opening balance 12,444,892.40 3,992,321.12 16,437,213.52
2. Increase in the current
7,094,029.03 1,804,723.29 8,898,752.32
period
(1) Established 7,094,029.03 1,804,723.29 8,898,752.32
(2) Increase in
business combination
(3) Effect of
exchange rate movements
3. Decrease in the current
232,250.55 135,296.83 367,547.38
period
(1) Disposal
Effect of exchange rate
232,250.55 135,296.83 367,547.38
movements
4. Closing balance 19,306,670.88 5,661,747.58 24,968,418.46
III. Impairment allowances
1. Opening balance
2. Increase in the current
period
(1) Established
3. Decrease in the
current period
(1) Disposal
158 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
4. Closing balance
IV. Carrying amount
1. Closing carrying
72,955,562.38 5,192,099.56 78,147,661.94
amount
2. Opening carrying
73,810,462.61 6,576,370.30 80,386,832.91
amount
Other information：
18. Intangible assets
(1) Particulars about intangible assets
Unit: RMB yuan
Non-patented Land Trademarks and
Item Land use rights Patent rights Total
technologies ownership software
I. Gross amount
1. Opening
114,739,730.08 83,813,525.48 15,446,573.78 179,201,859.84 393,201,689.18
balance
2. Increase
in the current 22,235,958.49 2,447,105.69 24,683,064.18
period
(1)
377,358.49 2,447,105.69 2,824,464.18
Purchases
(2)
Internal R&D
(3)
Increase in
21,858,600.00 21,858,600.00
business
combination
(4)
Effect of
exchange rate
movements
3. Decrease
in the current 2,470,651.83 452,077.10 4,297,922.79 7,220,651.72
period
(1)
Disposal
159 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
(2)
Transferred out
in disposal of
subsidiary
(3)
Effect of
2,470,651.83 452,077.10 4,297,922.79 7,220,651.72
exchange rate
movements
4. Closing
114,739,730.08 103,578,832.14 14,994,496.68 177,351,042.74 410,664,101.64
balance
II. Accumulated
amortization
1. Opening
22,218,954.91 52,413,720.96 24,850,025.69 99,482,701.56
balance
2. Increase
in the current 1,223,121.60 5,554,027.41 4,450,805.61 11,227,954.62
period
(1)
1,223,121.60 5,554,027.41 4,450,805.61 11,227,954.62
Provision
(2)
Increase in
business
combination
(3)
Effect of
exchange rate
movements
3.
Decrease in the 1,576,845.96 360,819.01 1,937,664.97
current period
(1)
Disposal
(2)
Transferred out
in disposal of
subsidiary
(3)
Effect of
1,576,845.96 360,819.01 1,937,664.97
exchange rate
movements
4. Closing 23,442,076.51 56,390,902.41 28,940,012.29 108,772,991.21
160 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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
carrying 91,297,653.57 47,187,929.73 14,994,496.68 148,411,030.45 301,891,110.43
amount
2. Opening
carrying 92,520,775.17 31,399,804.52 15,446,573.78 154,351,834.15 293,718,987.62
amount
As at the period-end, intangible assets arising from internal R&D accounted for 3.58% of the carrying amount of total intangible assets.
19. Goodwill
(1) Gross amounts of goodwill
Unit: RMB yuan
Investee or item Opening
Increase in the current period Decrease in the current period Closing balance
generating balance
161 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
goodwill
Investee or item Generated due Effect of Effect of
Opening
generating to business exchange rate Disposal exchange rate Closing balance
balance
goodwill combination movements movements
Parsun Power 208,031,946.10 208,031,946.10
EDF 63,383,214.71 1,855,045.67 61,528,169.04
Fosber Group 148,224,623.58 4,338,111.41 143,886,512.17
QCorr 12,567,632.43 367,818.72 12,199,813.71
Shenzhen
144,922,168.99 144,922,168.99
Wonder
Total 432,207,416.82 144,922,168.99 6,560,975.80 570,568,610.01
(2) Impairment allowances for goodwill
Unit: RMB yuan
Investee or item
Opening
generating Increase in the current period Decrease in the current period Closing balance
balance
goodwill
Investee or item Effect of Effect of
Opening
generating Established exchange rate Disposal exchange rate Closing balance
balance
goodwill movements movements
Parsun Power 61,855,054.35 61,855,054.35
EDF 63,383,214.71 1,855,045.67 61,528,169.04
Total 125,238,269.06 1,855,045.67 123,383,223.39
20. Long-term prepaid expenses
Unit: RMB yuan
Increase in the Amortization in
Item Opening balance Other decreases Closing balance
current period the current period
Plant decoration
3,070,959.67 101,799.80 609,557.80 2,563,201.67
expenditures
Expenditures on
plant supporting 1,094,117.37 118,569.49 176,741.81 1,035,945.05
engineering
Internet access for
968,696.77 87,517.52 881,179.25
offices
Amortization of
57,918.55 57,918.55
lease assets
Office decoration
2,463,148.78 3,339,373.12 502,582.62 5,299,939.28
expenditures
162 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Amortization of
4,213,276.71 1,807,643.06 2,063,579.33 3,957,340.44
moulds
CE certification
94,009.22 352,235.95 33,903.87 412,341.30
fee
Total 11,962,127.07 5,719,621.42 3,473,882.95 14,207,865.54
Other information
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
30,981,534.21 6,637,985.29 27,487,561.72 6,769,391.56
allowances
Internal unrealized
11,859,951.60 2,846,388.38
profit
Deductible loss 470,147,709.27 112,839,618.41 487,263,663.55 110,651,029.11
Credit impairment
28,845,310.63 6,654,695.57 29,574,977.76 7,004,793.92
allowances
Deferred income 48,714,911.85 10,644,700.49 50,391,274.95 10,996,777.94
Provisions—after-sales
maintenance service 93,840,086.46 23,647,582.66 110,759,543.46 27,917,753.88
charges
Accrued expenses 23,644,118.52 3,667,840.81 25,860,319.66 3,911,857.71
Equity incentives 53,801,978.97 7,515,238.72 40,413,913.40 5,628,337.80
Effect of the new lease
1,090,988.10 206,825.57 1,957,313.78 438,435.98
accounting standard
Others 82,895,591.18 23,830,482.83 83,873,243.64 25,583,084.08
Total 833,962,229.19 195,644,970.35 869,441,763.52 201,747,850.36
(2) Deferred tax liabilities before offsetting
Unit: RMB yuan
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
163 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Increase in value in
asset valuation in
business combination 51,936,212.18 9,262,976.54 31,042,086.34 6,347,331.46
not involving entities
under common control
Depreciation difference
14,910,299.58 4,009,760.04 14,439,128.26 3,888,612.02
of fixed assets
Financial assets at fair
value through profit or 35,519,608.26 5,212,438.60 35,395,813.71 5,204,143.87
loss
Others 48,666,086.92 7,595,649.99 46,011,729.25 7,809,378.02
Total 151,032,206.94 26,080,825.17 126,888,757.56 23,249,465.37
(3) Net balances of deferred tax assets/liabilities after offsetting
Unit: RMB yuan
Offset amount between Closing balance of Offset amount between Opening balance of
deferred tax assets and deferred tax assets or deferred tax assets and deferred tax assets or
Item
liabilities as at the liabilities after liabilities as at the liabilities after
period-end offsetting period-begin offsetting
Deferred tax assets 23,470,111.62 172,174,858.73 21,502,327.42 180,245,522.94
Deferred tax liabilities 23,470,111.62 2,610,713.55 21,502,327.42 1,747,137.95
(4) Breakdown of deferred tax assets unrecognized
Unit: RMB yuan
Item Closing balance Opening balance
Deductible temporary differences 9,166,596.72 8,615,142.53
Deductible losses 889,576,840.53 869,889,774.71
Total 898,743,437.25 878,504,917.24
(5) Deductible losses not recognized as deferred tax assets will expire as follows
Unit: RMB yuan
Year Closing amount Opening amount Remark
2022 8,615,142.53 8,615,142.53
2023 551,454.19
2024 834,076,473.87 834,076,473.87
2025 35,813,300.84 35,813,300.84
2026 19,687,065.82
2027
Total 898,743,437.25 878,504,917.24
Other information
164 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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 2,133,425.60 2,133,425.60
assets
Principal and
interest for
security deposit
for domestic
300,150,000.00 300,150,000.00
bank to provide
guarantee for
loan from
overseas bank
Others 6,135,228.00 6,135,228.00 4,446,841.54 4,446,841.54
Total 8,268,653.60 8,268,653.60 304,596,841.54 304,596,841.54
Other information：
23. Short-term borrowings
(1) Short-term borrowings by type
Unit: RMB yuan
Item Closing balance Opening balance
Guaranteed loan 176,738,256.00
Credit loan 67,132,224.05 51,574,624.73
Total 67,132,224.05 228,312,880.73
Description of types of short-term borrowings:
24. Financial liabilities held for trading
Unit: RMB yuan
Item Closing balance Opening balance
Financial liabilities held for trading 115,096,944.17 110,746,939.04
Of which:
165 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Non-controlling interests put options 109,179,395.52 110,746,939.04
Derivative financial liabilities 5,917,548.65
Of which:
Total 115,096,944.17 110,746,939.04
Other information：
25. Notes payable
Unit: RMB yuan
Type Closing balance Opening balance
Bank acceptance notes 133,601,311.71 149,191,690.00
Total 133,601,311.71 149,191,690.00
As at the period-end, notes payable that were due but unpaid totaled RMB .
26. Accounts payable
(1) Breakdown of accounts payable
Unit: RMB yuan
Item Closing balance Opening balance
Purchases of inventories 635,824,636.01 618,943,392.87
Others 3,930,612.51 322,463.31
Total 639,755,248.52 619,265,856.18
27. Contract liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Contract liabilities 719,487,278.58 405,842,932.51
Total 719,487,278.58 405,842,932.51
Amounts of and reasons for significant changes in carrying amounts during the Reporting Period:
Unit: RMB yuan
Amount
Item of Reason for change
change
28. Employee benefits payable
(1) Breakdown of employee benefits payable
Unit: RMB yuan
Item Opening balance Increase in the current Decrease in the current Closing balance
166 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
period period
I. Short-term benefits 96,387,794.91 300,152,461.45 295,929,935.04 100,610,321.32
II. Retirement benefits-
defined contribution 7,421,988.67 39,587,653.19 42,813,445.83 4,196,196.03
schemes
Total 103,809,783.58 339,740,114.64 338,743,380.87 104,806,517.35
(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 90,585,519.60 267,478,035.18 264,040,779.77 94,022,775.01
subsidies
2. Employee welfare 4,599,852.75 13,549,548.50 12,692,015.36 5,457,385.89
3. Social security
contributions 587,926.96 16,597,008.62 16,474,061.31 710,874.27
Including: medical
insurance 576,923.13 11,043,369.13 11,037,200.66 583,091.60
Work
injury insurance 10,914.73 5,240,292.67 5,124,168.73 127,038.67
Maternit
y insurance 89.10 313,346.82 312,691.92 744.00
4. Housing funds 15,749.64 2,071,399.03 2,085,998.67 1,150.00
5. Labour union funds
and employee 598,745.96 456,470.12 637,079.93 418,136.15
education funds
Total 96,387,794.91 300,152,461.45 295,929,935.04 100,610,321.32
(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 7,421,853.15 39,495,565.77 42,729,279.20 4,188,139.72
2. Unemployment
insurance 135.52 92,087.42 84,166.63 8,056.31
Total 7,421,988.67 39,587,653.19 42,813,445.83 4,196,196.03
Other information
29. Tax payable
Unit: RMB yuan
Item Closing balance Opening balance
167 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Value-added tax 2,659,692.86 25,459,136.69
Corporate income tax 12,867,190.79 22,054,501.83
Individual income tax 10,271,211.82 11,666,453.95
City maintenance and construction tax 520,298.36 691,680.71
Education surcharge 371,641.72 494,057.61
Stamp duties 29,811.20 55,317.40
Property tax 1,449,256.30 239,225.19
Land use tax 222,249.90 34,530.60
Others 917,105.36 6,442.26
Total 29,308,458.31 60,701,346.24
Other information
30. Other payables
Unit: RMB yuan
Item Closing balance Opening balance
Dividends payable 2,160,000.00
Other payables 123,746,503.26 100,018,273.09
Total 125,906,503.26 100,018,273.09
(1) Dividends payable
Unit: RMB yuan
Item Closing balance Opening balance
Dividends payable to ordinary
2,160,000.00
shareholders
Total 2,160,000.00
Other information, including reasons for substantial dividends payable that are over one year:
(2) Other payables
1) Other payables by nature
Unit: RMB yuan
Item Closing balance Opening balance
Accrued expenses 42,096,551.87 47,435,654.91
Repurchase obligation of restricted
shares 28,440,000.00 25,790,000.00
Payables for settled lawsuit 2,953,297.71 3,440,221.96
Security deposits 2,338,873.42 3,583,099.39
Acquisition of equity investments 24,760,000.00
168 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Others 23,157,780.26 19,769,296.83
Total 123,746,503.26 100,018,273.09
31. Current portion of non-current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Current portion of long-term borrowings 262,525,708.99 21,342,646.25
Current portion of lease liabilities 24,179,681.03 17,153,078.58
Total 286,705,390.02 38,495,724.83
Other information：
32. Other current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Output tax to be written off 5,049,848.81 3,429,923.76
Endorsed undue notes receivable 4,440,690.00 9,391,823.29
Others 438,433.17 14,725.95
Total 9,928,971.98 12,836,473.00
33. Long-term borrowings
(1) Long-term borrowings by type
Unit: RMB yuan
Item Closing balance Opening balance
Pledge loan 234,717,324.51 2,440,696.11
Guaranteed loan 59,747,008.37 298,477,313.32
Credit loan 40,245,087.01 45,450,825.31
Less: Current portion of long-term
-262,525,708.99 -21,342,646.25
borrowings
Total 72,183,710.90 325,026,188.49
Description of types of long-term borrowings:
Other information, including interest rate ranges:
169 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
34. Lease liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Lease liabilities 80,805,992.28 82,366,634.45
Less: Current portion of non-current
-24,179,681.03 -17,153,078.58
liabilities
Total 56,626,311.25 65,213,555.87
Other information：
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
13,022,074.87 16,083,170.32
defined benefit schemes
Total 13,022,074.87 16,083,170.32
36. Provisions
Unit: RMB yuan
Item Closing balance Opening balance Reason for provision
Product quality warranty 94,274,607.26 111,207,164.86
Others 6,092,964.61 6,725,556.73
Total 100,367,571.87 117,932,721.59
Other information, including key assumptions and estimates in relation to substantial provisions:
37. Deferred income
Unit: RMB yuan
Increase in the Decrease in the Reason for
Item Opening balance Closing balance
current period current period deferred income
Government grants 12,190,311.66 558,330.00 11,631,981.66
Total 12,190,311.66 558,330.00 11,631,981.66
Deferred income associated with government grants:
Unit: RMB yuan
New Amount Amount Amount
Opening governmen recognized recognized offsetting Other Closing Asset/inco
Liabilities
balance t grants in in non- in other costs and changes balance me-related
the current operating income in expenses in
170 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
period income in the current the current
the current period period
period
Amortized
deferred
income (4
Mitsubishi
12,190,311. 11,631,981. Asset-
machining 558,330.00
66 66 related
centers and
3 vertical
machining
centers)
Other information：
38. Other non-current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Non-controlling interests options 135,327,385.06 136,178,304.44
Total 135,327,385.06 136,178,304.44
Other information：
39. Share capital
Unit: RMB yuan
Increase/decrease in the current period
Shares as
Opening Shares as Closing
dividend
balance dividend balance
New issues converted Others Subtotal
converted
from capital
from profit
surplus
Total share 1,331,938,16 1,331,938,16
capital 7.00 7.00
Other information：
40. Capital surplus
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Capital premium (share
3,198,064,392.09 25,500,000.00 43,112.84 3,223,521,279.25
premium)
Other capital surplus 40,701,467.85 13,388,065.57 54,089,533.42
Total 3,238,765,859.94 38,888,065.57 43,112.84 3,277,610,812.67
171 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Other information, including changes in the current period and reasons for changes:
(1) The share-based payments by the Group in the period were recorded in shareholders’ equity, increasing capital surplus by
RMB13,388,065.57.
(2) The Group acquired Shenzhen Wonder in the period, increasing capital surplus by RMB25,500,000.00.
(3) The share repurchase-related commissions and service charges incurred by the Company in the period reduced capital surplus by
RMB43,112.84.
41. Treasury shares
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Share repurchase 494,335,503.94 215,563,545.78 709,899,049.72
Total 494,335,503.94 215,563,545.78 709,899,049.72
Other information, including changes in the current period and reasons for changes:
The increase in treasury shares was driven by the share repurchases of the Company in the current period.
42. Other comprehensive income
Unit: RMB yuan
Amount generated in the current period
Less: Less:
amount amount
previously previously
Amount
recognized recognized After-tax
before After-tax
Opening in other in other amount Closing
Item income tax Less: amount
balance comprehen comprehen attributable balance
generated Income tax attributable
sive sive to non-
in the expense to the
income and income and controlling
current parent
currently currently interests
period
transferred transferred
to profit or to retained
loss earnings
I. Other
comprehen
sive
income that - -
440,788.86 440,788.86
will not be 647,558.19 206,769.33
reclassified
to profit or
loss
Of which:
Changes
- -
due to 440,788.86 440,788.86
647,558.19 206,769.33
remeasure
ment of
172 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
defined
benefit
schemes
II. Other
comprehen
sive
- - - - -
income that
32,675,104. 13,279,391. 11,994,193. 1,285,198.3 44,669,297.
will be
79 56 17 9 96
reclassified
to profit or
loss
Differences
arising
from the
- - - - -
translation
32,631,132. 13,279,391. 11,994,193. 1,285,198.3 44,625,325.
of foreign
72 56 17 9 89
currency-
denominate
d financial
statements
Others -43,972.07 -43,972.07
Total other
- - - - -
comprehen
33,322,662. 12,838,602. 11,553,404. 1,285,198.3 44,876,067.
sive
98 70 31 9 29
income
Other information, including the reconciliation from the valid portion of gains and losses on cash flow hedges to initial recognition
amounts of hedged items:
43. Special reserve
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Expenses for safety
11,252,639.19 2,655,989.89 1,365,610.32 12,543,018.76
production
Total 11,252,639.19 2,655,989.89 1,365,610.32 12,543,018.76
Other information, including movements in the current period and reasons for the movements:
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
Total 51,830,974.45 51,830,974.45
173 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Notes to surplus reserves, including movements in the current period and reasons for the movements:
45. Retained earnings
Unit: RMB yuan
Item Current period Last year
Retained earnings as at the end of the
-424,159,175.27 -891,492,837.06
prior year before adjustment
Opening retained earnings after
-424,159,175.27 -891,492,837.06
adjustment
Add: Net profit attributable to owners of
148,199,917.83 467,333,661.79
the parent in the current period
Closing retained earnings -275,959,257.44 -424,159,175.27
46. Operating revenue and costs
Unit: RMB yuan
H1 2022 H1 2021
Item
Revenue Costs Revenue Costs
Principal operations 1,519,070,665.37 1,118,118,448.59 1,390,814,259.00 988,136,647.75
Other operations 16,544,968.89 15,925,817.63 9,744,705.18 3,318,827.11
Total 1,535,615,634.26 1,134,044,266.22 1,400,558,964.18 991,455,474.86
Information related to contract performance obligations:
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of revenue corresponding to performance obligations that had been contracted but not
yet performed or fulfilled was RMB685,378,767.98, of which RMB685,378,767.98 is expected to be recognized during 2022-2023,
RMB is expected to be recognized during , and RMB is expected to be recognized during .
Other information
47. Taxes and surcharges
Unit: RMB yuan
Item H1 2022 H1 2021
City maintenance and construction tax 2,403,719.33 1,406,514.54
Education surcharge 1,406,640.94 1,908,759.68
Property tax 2,245,774.79 2,265,213.88
Land use tax 239,515.20 269,856.60
Vehicle and vessel use tax 7,330.53 15,452.53
Stamp duties 446,737.45 376,940.91
Others 206,705.23 76,276.26
174 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Total 6,956,423.47 6,319,014.40
Other information：
48. Selling expenses
Unit: RMB yuan
Item H1 2022 H1 2021
Commissions and agency fees 15,772,413.20 21,675,931.57
Employee benefits 26,129,144.08 22,547,654.97
Product quality warranties 6,100,304.93 8,474,477.51
Advertising and exhibition expenses 2,671,213.87 2,527,612.71
Travel expenses 4,913,530.31 3,529,504.46
Transportation expenses and
miscellaneous costs associated with 156,392.08 5,247,059.73
imports and exports
Office expenditures 986,366.54 522,373.50
Depreciation and amortization expenses 497,868.97 555,637.82
Other expenses 4,866,566.68 3,470,309.05
Total 62,093,800.66 68,550,561.32
Other information：
49. Administrative expenses
Unit: RMB yuan
Item H1 2022 H1 2021
Employee benefits 68,012,749.61 55,345,233.87
Depreciation and amortization expenses 16,883,464.07 17,355,893.58
Intermediary expenses 8,308,753.73 11,985,471.80
Equity incentives 13,388,065.57 17,386,141.80
Office expenditures 5,262,273.16 4,367,095.01
Travel and business entertainment
4,778,309.22 4,633,656.20
expenses
Conference expenses 4,383,169.39 3,059,360.70
Property management expenses 1,244,898.31 1,720,497.48
Other expenses 11,030,709.85 13,908,003.12
Total 133,292,392.91 129,761,353.56
Other information
50. R&D expenses
Unit: RMB yuan
Item H1 2022 H1 2021
Employee benefits 31,029,072.46 23,772,680.95
Depreciation and amortization expenses 5,794,158.26 8,386,778.88
Material expenses 2,142,276.51 9,415,709.52
175 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Other expenses 5,166,718.07 6,650,403.53
Total 44,132,225.30 48,225,572.88
Other information
51. Finance costs
Unit: RMB yuan
Item H1 2022 H1 2021
Interest expenses 5,668,853.58 4,899,967.92
Less: Interest income 8,770,967.42 11,985,482.68
Exchange gains and losses -7,211,018.81 4,223,803.17
Others 1,456,509.76 1,235,137.03
Total -8,856,622.89 -1,626,574.56
Other information
52. Other income
Unit: RMB yuan
Source of other income H1 2022 H1 2021
Government grants 6,032,264.36 6,712,327.65
Handling charges for individual income
178,461.16 141,332.03
tax withheld
Total 6,210,725.52 6,853,659.68
53. Investment income
Unit: RMB yuan
Item H1 2022 H1 2021
Income from long-term equity
1,279,980.62 1,249,209.43
investments measured at equity method
Income from financial assets held for
-1,502,561.59 51,719,985.02
trading
Total -222,580.97 52,969,194.45
Other information
54. Gains and losses on changes in fair value
Unit: RMB yuan
Source of gains and losses on changes in
H1 2022 H1 2021
fair value
Financial assets held for trading 24,927,586.43 21,393,373.17
Total 24,927,586.43 21,393,373.17
176 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Other information：
55. Credit impairment loss
Unit: RMB yuan
Item H1 2022 H1 2021
Loss on doubtful receivables -3,182.86
Impairment loss of contract assets 257,325.86
Loss on doubtful accounts receivable 1,793,195.88 229,855.72
Total 1,790,013.02 487,181.58
Other information
56. Asset impairment loss
Unit: RMB yuan
Item H1 2022 H1 2021
II. Inventory valuation loss and loss on
impairments of contract performance -6,154,706.43 583,807.10
costs
Total -6,154,706.43 583,807.10
Other information：
57. Gains on disposal of assets
Unit: RMB yuan
Source of gains on disposal of assets H1 2022 H1 2021
Gain/loss on disposal of non-current
-233,705.60 276,635.45
assets
Total -233,705.60 276,635.45
58. Non-operating income
Unit: RMB yuan
Amount recognized in
Item H1 2022 H1 2021
exceptional gains and losses
Others 1,033,996.47 364,145.89 1,033,996.47
Total 1,033,996.47 364,145.89 1,033,996.47
Government grants recognized in profit or loss:
Unit: RMB yuan
Profit-to- Asset-
Special
Title Grantor Reason Nature/type loss/loss- H1 2022 H1 2021 related/inco
grant or not
to-profit me-related
177 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
impact in
the period
Other information：
59. Non-operating expenses
Unit: RMB yuan
Amount recognized in
Item H1 2022 H1 2021
exceptional gains and losses
Donations 185,431.30 62,122.44 185,431.30
Sponsorship expenditures 17,600.00 2,000.00 17,600.00
Loss on disposal of non-
133,876.71 32,016.28 133,876.71
current assets
Others 377,721.10 324,101.76 377,721.10
Total 714,629.11 420,240.48 714,629.11
Other information：
60. Income tax expenses
(1) Income tax expenses
Unit: RMB yuan
Item H1 2022 H1 2021
Current income tax expenses 35,242,804.62 36,572,973.93
Deferred income tax expenses -4,119,080.80 1,464,031.55
Total 31,123,723.82 38,037,005.48
(2) Reconciliation between accounting profit and income tax expenses
Unit: RMB yuan
Item H1 2022
Gross profit 190,589,847.92
Income tax calculated at statutory/applicable tax rates 28,588,477.16
Different tax rates for specific provinces or enacted by local
10,334,136.62
authority
Adjustment to income tax in previous periods -1,130,641.81
Income not subject to tax -4,550,351.09
Costs, expenses, and losses not deductible for tax -647,625.03
Utilization of deductible losses on previously unrecognized
-1,947,982.56
deferred tax assets
Effect of deductible temporary differences or deductible losses
2,792,899.15
on current unrecognized deferred tax assets
Over-deduction of the taxable profit amount for R&D -2,281,002.84
178 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Others -34,185.78
Income tax expenses 31,123,723.82
Other information：
61. Other comprehensive income
See Note 42.
62. Line items of the cash flow statement
(1) Cash generated from other operating activities
Unit: RMB yuan
Item H1 2022 H1 2021
Current accounts and others 10,938,730.56 10,559,708.11
Interest income 2,763,833.20 7,150,338.75
Government grants 5,652,395.52 6,146,499.37
Letter of guarantee received 16,409,067.45 5,738,155.61
Total 35,764,026.73 29,594,701.84
Notes to cash generated from other operating activities:
(2) Cash used in other operating activities
Unit: RMB yuan
Item H1 2022 H1 2021
Selling expenses in cash 48,115,660.15 38,137,786.88
Administrative expenses in cash 38,227,480.77 53,535,286.25
R&D expenses in cash 4,950,622.76 12,975,177.50
Letter of guarantee paid 15,780,974.76 1,500,000.00
Current accounts and others 17,375,948.50 26,935,772.72
Security deposits 1,244,225.97
Total 125,694,912.91 133,084,023.35
Notes to cash used in other operating activities:
(3) Cash generated from other investing activities
Unit: RMB yuan
Item H1 2022 H1 2021
Performance compensation 742,251.94 2,453,179.98
Total 742,251.94 2,453,179.98
Notes to cash generated from other investing activities：
179 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
(4) Cash used in other investing activities
Unit: RMB yuan
Item H1 2022 H1 2021
Notes to cash used in other investing activities：
(5) Cash generated from other financing activities
Unit: RMB yuan
Item H1 2022 H1 2021
Security deposits received for internal
420,000,000.00
guarantees for external loans
Security deposits for bank acceptance
94,712,397.48 69,199,415.97
notes
Share subscription 2,650,000.00 5,651,200.00
Deposits for loans 140,000,000.00
Total 657,362,397.48 74,850,615.97
Notes to cash generated from other financing activities：
(6) Cash used in other financing activities
Unit: RMB yuan
Item H1 2022 H1 2021
Security deposits paid for internal
210,000,000.00 210,000,000.00
guarantees for external loans
Share repurchase 215,606,658.62 491,088,121.79
Security deposits for bank acceptance
59,353,845.18 58,766,410.12
notes
Repayment of lease liabilities 8,605,212.20 10,705,539.89
Total 493,565,716.00 770,560,071.80
Notes to cash used in other financing activities：
63. Supplemental information on statement of cash flows
(1) Supplemental information on statement of cash flows
Unit: RMB yuan
Supplementary information H1 2022 H1 2021
1. Reconciliation of net profit to net cash
generated from/used in investing
activities:
Net profit 159,466,124.10 202,344,313.08
Add: Asset impairment allowances 4,364,693.41 -1,070,988.68
180 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Depreciation of fixed assets,
depletion of oil and gas assets, and 22,520,853.53 25,543,700.78
depreciation of productive living assets
Depreciation of right-of-use
8,898,752.32 9,380,832.96
assets
Amortization of intangible
11,227,954.62 13,924,270.85
assets
Amortization of long-term
3,473,882.95 2,191,994.62
prepaid expenses
Loss on the disposal of fixed
assets, intangible assets, and other long- 233,705.60 -276,635.45
lived assets (“-” for gain)
Loss on the retirement of fixed
133,876.71 32,016.28
assets (“-” for gain)
Loss on changes in fair value
-24,927,586.43 -21,393,373.17
(“-” for gain)
Finance costs (“-” for income) 593,853.58 4,899,967.92
Loss on investment (“-” for
222,580.97 -52,969,194.45
income)
Decrease in deferred tax assets
4,377,469.88 295,818.56
(“-” for increase)
Increase in deferred tax
-7,231,414.10 193,925.50
liabilities (“-” for decrease)
Decrease in inventories (“-” for
-295,593,753.30 -268,008,107.81
increase)
Decrease in operating
-176,463,861.35 -175,004,370.95
receivables (“-” for increase)
Increase in operating payables
426,275,129.13 448,553,516.41
(“-” for decrease)
Others 14,678,445.11 17,386,141.80
Net cash generated from/used
152,250,706.73 206,023,828.25
in 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 1,227,722,921.53 1,543,198,951.25
Less: Opening balance of cash 1,259,303,775.74 860,601,236.78
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
181 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Net increase in cash and cash
-31,580,854.21 682,597,714.47
equivalents
(2) Net cash payments for the acquisition of subsidiaries in the current period
Unit: RMB yuan
Amount
Payments of cash or cash equivalents in the current period for
162,040,000.00
business combinations in the current period
Of which:
Less: Cash and cash equivalents held by subsidiary on date of
22,867,983.95
acquisition
Of which:
Of which:
Net cash payments for the acquisition of subsidiaries 139,172,016.05
(3) Breakdown of cash and cash equivalents
Unit: RMB yuan
Item Closing balance Opening balance
I. Cash 1,227,722,921.53 1,259,303,775.74
Including: cash on hand 439,819.27 233,281.32
Bank deposits readily available 1,158,706,979.62 999,389,151.51
Other cash and bank balances readily
68,576,122.64 259,681,342.91
available
III. Closing balance of cash and cash
1,227,722,921.53 1,259,303,775.74
equivalents
64. Assets with restricted ownership or right of use
Unit: RMB yuan
Item Closing carrying amount Reason for restriction
Payments of security deposits for bank
Cash and bank balances 14,680,985.43
acceptance notes and performance bonds
Fixed assets 4,308,785.21 Collaterals for bank loans of subsidiaries
Current portion of other non-current Security deposits for loans of
305,225,000.00
assets subsidiaries
Total 324,214,770.64
65. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Unit: RMB yuan
Item Closing balance in foreign Exchange rate Closing balance in RMB
182 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
currency
Cash and bank balances
Including: USD 56,795,220.10 6.7114 381,175,440.18
EUR 48,679,697.49 7.0084 341,166,791.89
HKD 71,445.16 0.8552 61,099.90
AUD 196.00 4.6145 904.44
Accounts receivable
Including: USD 3,108,925.01 6.7114 20,865,239.31
EUR 86,716,489.64 7.0084 607,743,845.99
HKD 0.8552
Long-term borrowings
Including: USD 6.7114
EUR 9,412,568.38 7.0084 65,967,044.23
HKD 0.8552
Accounts payable
Including: USD 6.7114
EUR 60,558,444.62 7.0084 424,417,803.27
Other receivables
Including: USD 245,375.00 6.7114 1,646,809.78
EUR 9,401,906.09 7.0084 65,892,318.64
Short-term borrowings
Including: USD 6.7114
EUR 8,979,542.27 7.0084 62,932,224.05
Current portion of non-
current liabilities
Including: USD 6.7114
EUR 38,802,979.16 7.0084 271,946,799.14
Other payables
Including: USD 568,598.02 6.7114 3,816,088.75
EUR 3,026,047.57 7.0084 21,207,751.79
Other information：
(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
Principal place of business, functional currency, and basis for the choice of substantial overseas business entities included in the
consolidated financial statements are as follows:
183 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Functional
Substantial overseas business entity Principal place of business Basis for the choice
currency
Settlement currency for local business
Fosber Group Italy EUR
operations
Settlement currency for local business
Fosber America America USD
operations
Settlement currency for local business
EDF Italy EUR
operations
Settlement currency for local business
Tirua Group Spain EUR
operations
66. Government grants
(1) Basic information of government grants
Unit: RMB yuan
Amount recognized in profit
Type Amount Recognized in
or loss
4 Mitsubishi double-column
milling machines and 3 fixed
11,631,981.66 Deferred income 558,330.00
double-column milling
machines
Policy support funds for Solo
Champion Manufacturing 120,000.33 Other income 120,000.33
Enterprise of 2020
Subsidy associated with over-
deductible of the taxable
profit amount for R&D for
500,000.00 Other income 500,000.00
Solo Champion
Manufacturing Enterprise of
2020
2021 steady employment
48,215.23 Other income 48,215.23
allowance
Receipt of immediate VAT
refund for embedded software 111,950.52 Other income 111,950.52
(202111)
Receipt of immediate VAT
refund for embedded software 73,755.60 Other income 73,755.60
(202111)
Receipt of immediate VAT
refund for embedded software 52,451.33 Other income 52,451.33
(202111)
Receipt of immediate VAT
refund for embedded software 32,769.56 Other income 32,769.56
(202111)
184 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
One-off job retention subsidy 21,125.00 Other income 21,125.00
Employment security
4,233.24 Other income 4,233.24
allowance
Receipt of immediate VAT
refund for embedded software 1,441,156.81 Other income 1,441,156.81
(202110-11)
Receipt of immediate VAT
refund for embedded software 747,279.87 Other income 747,279.87
(202110-11)
Receipt of government
subsidy (2020 policy support
funds for Gazelle Enterprise- 81,148.49 Other income 81,148.49
exclusive of R&D-related
funds)
Receipt of government
subsidy (2021 Qiye First
Identification for Solo 300,000.00 Other income 300,000.00
Champion Manufacturing
Enterprise)
Actually immediate VAT
refund for embedded software
32,100.35 Other income 32,100.35
(202109) (rectification of
Certificate 100000983#)
Receipt of government
subsidy (2020 R&D
600,000.00 Other income 600,000.00
expenses-related subsidy for
Gazelle Enterprise)
2021 R&D expenses-related
reward from the Scientific
23,600.00 Other income 23,600.00
and Technological Innovation
Bureau
Special funds for business
development of Suzhou High-
20,300.00 Other income 20,300.00
tech Zone Bureau of
Commerce
Funds from the
Administration for Market
120,000.00 Other income 120,000.00
Regulation of the high-tech
zone
Special fund for technological
development from the
Scientific and Technological 700,000.00 Other income 700,000.00
Innovation Bureau of
Xushuguan Town, Suzhou
Funds from the Economic
Development Committee of 200,000.00 Other income 200,000.00
Suzhou High-tech Zone
Refund of social security
contributions for steady 136,370.00 Other income 136,370.00
employment
Steady employment subsidy
1,096.90 Other income 1,096.90
for enterprises
Steady employment subsidy
18,250.00 Other income 18,250.00
for enterprises
One-off job retention and
training subsidy from the 42,250.00 Other income 42,250.00
Social Security Bureau
185 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Second steady employment
12,183.60 Other income 12,183.60
subsidy
Foreign government subsidies 33,697.53 Other income 33,697.53
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
Unit: RMB yuan
Revenue of Net profit
Basis for acquiree of acquiree
Date of Cost of
How equity determinati from the from the
ownership ownership Ownership Date of
Acquiree interests is on of the date of date of
of equity of equity percentage acquisition
acquired date of acquisition acquisition
interests interests
acquisition to the to the
period-end period-end
Completion
By cash
Shenzhen 8 June 173,800,00 8 June of transfer 5,612,027.3
51.00% and capital 789,556.27
Wonder 2022 0.00 2022 of equity 9
increase
ownership
(2) Cost of acquisition and goodwill
Unit: RMB yuan
Cost of acquisition Shenzhen Wonder
--Cash 173,800,000.00
--Fair value of non-cash assets
--Fair value of debt issued or borne
--Fair value of equity securities issued
--Fair value of contingent considerations
--Fair value on the date of acquisition of equity interests held
before that date
--Others
Total cost of acquisition 173,800,000.00
Less: Share of fair value of identifiable equities obtained 28,877,831.01
Amount by which the cost of goodwill/acquisition is lower than
144,922,168.99
the share of fair value of identifiable equities obtained
(3) Identifiable assets and liabilities of acquirees on the date of acquisition
Unit: RMB yuan
Shenzhen Wonder
Fair value on the date of acquisition Carrying value on the date of acquisition
186 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Assets： 118,600,318.94 93,981,057.45
Cash and bank balances 22,867,983.95 22,867,983.95
Accounts receivable 12,147,478.25 12,147,478.25
Inventories 44,297,259.74 42,548,955.95
Fixed assets 5,504,939.18 4,492,581.48
Intangible assets 21,858,600.00
Notes receivable 740,481.63 740,481.63
Prepayments 2,411,228.55 2,411,228.55
Other receivables 2,072,193.35 2,072,193.35
Other current assets 37,841.92 37,841.92
Right-of-use assets 6,080,817.77 6,080,817.77
Deferred tax assets 581,494.60 581,494.60
Liabilities： 61,977,120.89 58,284,231.66
Borrowings 10,800,000.00 10,800,000.00
Accounts payable 10,200,334.69 10,200,334.69
Deferred tax liabilities 3,701,257.61 8,368.38
Contract liabilities 6,448,103.80 6,448,103.80
Employee benefits payable 2,729,488.28 2,729,488.28
Tax payable 4,962,681.84 4,962,681.84
Other payables 15,034,104.80 15,034,104.80
Current portion of non-current liabilities 4,204,477.63 4,204,477.63
Other current liabilities 709,454.49 709,454.49
Lease liabilities 3,187,217.75 3,187,217.75
Equity 56,623,198.05 35,696,825.79
Less: Non-controlling interests 27,745,367.04 17,491,444.64
Equity obtained 28,877,831.01 18,205,381.15
2. Changes to the scope of consolidation for other reasons
Changes to the scope of consolidation due to other reasons (incorporation, liquidation, etc.):
In March 2022, the Company’s wholly-owned subsidiary Hainan Yineng Investment Co., Ltd. (Yineng Investment) signed the
Partnership Agreement on Changzhou Xinchen Venture Capital Partnership (Limited Partnership) with Shenzhen Qifu Antai
Investment Management Co., Ltd. and Liu Haitao, among others to make a joint investment in Changzhou Xinchen Venture Capital
Partnership (Limited Partnership) (hereinafter, the “partnership”). All the parties to the Agreement subscribed for a combined capital
of RMB50.6 million, of which Yineng Investment, as one of the limited partners of the partnership, subscribed for RMB48 million.
As one of the limited partners of the partnership, Yineng Investment accounts for 94.86% of the total capital contributions.
Considering the partnership's agreements on investment orientation, investment decisions, operation and management, income
apportionment, and loss bearing, and the fact that Yineng Investment accounts for the majority of the capital contributions to the
partnership, the partnership is included in the consolidated statements of Dongfang Precision as a "structured body controlled by the
Company" from the perspective of commercial substance and after complying with the Accounting Standard for Business Enterprises
and referring to the professional opinions of the independent auditor.
187 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
IX. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of the Group
The Company’s interest How the
Principal place Place of
Subsidiary Business nature subsidiary was
of 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, Suzhou,
Suzhou Jinquan Investment 1.23% Incorporated
Jiangsu, China Jiangsu, China
Acquired in
business
Suzhou, Suzhou, combination
Parsun Power Manufacturing 7.83% 62.95%
Jiangsu, China Jiangsu, China not under
common
control
Parsun Power Suzhou, Suzhou,
Manufacturing 70.78% Incorporated
Technology Jiangsu, China Jiangsu, China
Acquired in
business
Shunyi Suzhou, Suzhou, combination
Investment 100.00%
Investment Jiangsu, China Jiangsu, China not under
common
control
Acquired in
Foshan, Foshan, business
Yinglian combination
Guangdong, Guangdong, Manufacturing 100.00%
Digital not under
China China common
control
Acquired in
business
combination
EDF Italy Italy Manufacturing 100.00%
not under
common
control
Acquired in
business
Fosber Group Italy Italy Manufacturing 100.00%
combination
not under
188 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
common
control
Acquired in
business
combination
Fosber America America America Manufacturing 100.00%
not under
common
control
Acquired in
business
combination
Fosber Tianjin Tianjin, China Tianjin, China Manufacturing 100.00%
not under
common
control
Acquired in
business
combination
Tiruna Group Spain Spain Manufacturing 70.00%
not under
common
control
Acquired in
business
combination
Tiruna S.L.U. Spain Spain Manufacturing 70.00%
not under
common
control
Acquired in
Tratatamientos business
combination
Industriales Spain Spain Manufacturing 70.00%
not under
Tiruna S.A.U. common
control
Acquired in
business
Tiruna France combination
France France Manufacturing 70.00%
SARL not under
common
control
Acquired in
business
combination
SCI Candan France France Manufacturing 70.00%
not under
common
control
Acquired in
business
combination
Tiruna America America America Manufacturing 85.00%
not under
common
control
Qcorr Italy Italy Manufacturing 60.00% Incorporated
Dongfang Haikou, Haikou, Industrial Inter
100.00% Incorporated
Digicom Hainan, China Hainan, China net
Digicom Foshan, Foshan, Industrial
100.00% Incorporated
Guangdong Guangdong, Guangdong, Internet
189 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
China China
Yineng Haikou, Haikou,
Investment 100.00% Incorporated
Investment Hainan, China Hainan, China
Tianjin
Tianjin, China Tianjin, China Investment 95.24% Incorporated
Hangchuang
Changzhou Changzhou, Changzhou,
Investment 94.86% Incorporated
Xinchen* Jiangsu, China Jiangsu, China
Acquired in
business
Shenzhen, Shenzhen,
Shenzhen combination
Guangdong, Guangdong, Manufacturing 51.00%
Wonder not under
China China
common
control
Acquired in
business
Shenzhen, Shenzhen,
Shenzhen combination
Guangdong, Guangdong, Manufacturing 51.00%
Wonder Tejing not under
China China
common
control
Reason for holding different equity percentage and voting right percentage in a subsidiary:
As of the issue date of the 2022 Semi-Annual Report of Dongfang Precision, Dongfang Precision directly holds a 7.83% interest in
subsidiary Suzhou Parsun Power Machine Co., Ltd. (Parsun Power).
Suzhou Shunyi Investment Co., Ltd. (Shunyi Investment), a wholly-owned subsidiary of Dongfang Precision, holds a 61.72%
interest in Parsun Power. Meanwhile, Shunyi Investment, as a general partner and executive partner of Parsun Power’s shareholder
Suzhou High-Tech Zone Jinquan Business Management Partnership (Limited Partnership) (Suzhou Jinquan), holds a 1.23% interest
and controls a 5.45% interest in Parsun Power via Suzhou Jinquan. Therefore, Dongfang Precision holds a combined interest of 70.78%
and controls a combined interest of 75.00% in Parsun Power both directly and indirectly.
Basis for control over substantial structured entities included in the consolidated financial statements:
In March 2022, the Company’s wholly-owned subsidiary Hainan Yineng Investment Co., Ltd. (Yineng Investment) signed the
Partnership Agreement on Changzhou Xinchen Venture Capital Partnership (Limited Partnership) with Shenzhen Qifu Antai
Investment Management Co., Ltd. and Liu Haitao, among others to make a joint investment in Changzhou Xinchen Venture Capital
Partnership (Limited Partnership) (hereinafter, the “partnership”). All the parties to the Agreement subscribed for a combined capital
of RMB50.6 million, of which Yineng Investment, as one of the limited partners of the partnership, subscribed for RMB48 million.
As one of the limited partners of the partnership, Yineng Investment accounts for 94.86% of the total capital contributions.
Considering the partnership's agreements on investment orientation, investment decisions, operation and management, income
apportionment, and loss bearing, and the fact that Yineng Investment accounts for the majority of the capital contributions to the
partnership, the partnership is included in the consolidated statements of Dongfang Precision as a "structured body controlled by the
Company" from the perspective of commercial substance and after complying with the Accounting Standard for Business Enterprises
and referring to the professional opinions of the independent auditor.
2. Interests in joint ventures and associates
(1) Principal joint ventures and associates
The Company’s interest Accounting
treatment of
Joint venture or Principal place Place of
Business nature investment in
associate of business registration Direct Indirect
the joint
venture or
190 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
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:
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:
(2) Key financial information of principal joint ventures
Unit: RMB yuan
Closing balance/H1 2022 Opening balance/H1 2021
Jaten Robot Jaten Robot
Current assets 425,134,446.21 330,487,248.69
Non-current assets 115,340,074.66 112,183,506.48
Total assets 540,474,520.87 442,670,755.17
Current liabilities 310,415,625.50 231,913,001.95
Non-current liabilities 21,156,000.00 16,210,604.84
Total liabilities 331,571,625.50 248,123,606.79
Non-controlling interests
Equity attributable to owners of the
208,902,895.37 194,547,148.38
parent
Share of net assets based on the
43,869,608.03 40,854,901.16
Company’s interest
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Carrying amount of equity investments
76,060,326.24 74,780,345.62
in associates
Fair value of equity investments in
associates with quotations on an open
market
Operating revenue 112,574,301.37 70,380,196.61
Net profit 6,095,145.83 5,948,616.35
Net profit of discontinued operations
Other comprehensive income
191 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Total comprehensive income 6,095,145.83 5,948,616.35
Dividends received from associates in
the period
Other information
X. Risks Associated with Financial Instruments
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 mainly has the following instruments: cash and bank
balances, equity investment, borrowings, notes receivable, accounts receivable, notes payable and accounts payable. The risk
management strategies adopted by the Group to lower risks associated with these financial instruments are described below.
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 objectives
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 needed
for all customers that require transactions should be conducted by means of credit. Additionally, 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 risk 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 Group 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 Group takes into account the reasonable and substantiated information that is accessible without exerting undue extra cost
or effort, including qualitative and quantitative analysis based on the historical data of the Group, external credit risk rating, and
forward-looking information. Based on the single financial instrument or the combination of financial instruments with similar
192 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
characteristics of credit risk, the Group 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 Group 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.
As of 30 June 2022, 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 exchange rate Increase/(decrease) in net profit or Increase/(decrease) in total
(%) loss equity
193 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Stronger RMB against
2.00 -2,558,636.28 -2,558,636.28
EUR
Weaker RMB against
(2.00) 2,558,636.28 2,558,636.28
EUR
Stronger RMB against
2.00 -6,677,852.39 -6,677,852.39
USD
Weaker RMB against
(2.00) 6,677,852.39 6,677,852.39
USD
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 2022.
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
830,381,698.55 830,381,698.55
held for trading
Receivables financing 32,869,739.53 32,869,739.53
Other non-current
4,717,295.10 265,083,255.52 269,800,550.62
financial assets
Total assets
continuously measured 835,098,993.65 32,869,739.53 265,083,255.52 1,133,051,988.70
at fair value
(VI) Financial
liabilities held for 5,917,548.65 109,179,395.52 115,096,944.17
trading
Other non-current
135,327,385.06 135,327,385.06
liabilities
Total liabilities 5,917,548.65 244,506,780.58 250,424,329.23
194 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
continuously measured
at fair value
II. Non-continuous
measurement of fair -- -- -- --
value
XII. Related Parties and Related-party Transactions
1. Parent
Interest in the
Name Relationship with the Company
Company (%)
Tang Zhuolin The Company’s controlling shareholder and one of the
20.33
(individual) actual controllers
Tang Zhuomian The Company’s controlling shareholder and one of the
7.27
(individual) actual controllers
The ultimate controllers of the Company are Tang Zhuolin and Tang Zhuomian.
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.
4. Other related parties
Other related parties Relationship with the Company
Qiu Yezhi Director and General Manager
Zhou Wenhui Director
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 Employee Supervisor
He Baohua Supervisor
Shao Yongfeng Chief Financial Officer
Feng Jia Board Secretary
195 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
5. Related-party transactions
(7) Remuneration of key management
Unit: RMB yuan
Item H1 2022 H1 2021
Remuneration of key management 7,801,939.42 7,727,395.52
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
2,650,000.00
Company during the current period
Total amount of various equity instruments exercised by the
0.00
Company during the current period
Total amount of various equity instruments invalidated during
0.00
the current period of the Company
Other information
2. Equity-settled share-based payments
Applicable □ Not applicable
Unit: RMB yuan
Methods for determining the fair value of equity instruments on
Market prices
the grant date
Basis for determining the number of feasible right equity
2020/2022 Restricted Share Incentive Plan
instruments
Reason for significant difference between estimates of the
Not applicable
current period and the last period
Cumulative amount of equity-settled share-based payments
recognized in capital surplus 53,801,978.97
Total costs of equity-settled share-based payments in the current
period 13,388,065.57
196 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
XIV. Other Significant Matters
1. Segment reporting
(1) Basis for the determination of reporting segments and accounting policies
The Company divides reporting segments based on business/product segment. Assets and liabilities
shared by different segments are allocated to these segments according to their scales.
(2) Financial information of reporting segments
Unit: RMB yuan
Item Domestic entities Overseas entities Offset Total
Operating revenue 623,947,200.75 1,106,235,884.31 -194,567,450.80 1,535,615,634.26
Cost of sales 432,301,993.12 868,697,745.71 -166,955,472.61 1,134,044,266.22
Total assets 4,941,457,064.15 2,834,538,054.18 -1,277,748,300.59 6,498,246,817.74
Total liabilities 1,327,346,707.72 2,067,764,279.76 -771,612,390.37 2,623,498,597.11
XV. 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 Allowan Allowan
Carrying Carrying
Percenta ce Percenta ce
Amount Amount amount Amount Amount amount
ge percenta ge percenta
ge ge
Account
s
receivab
le for
which
the 2,488,10 2,488,10 3,011,09 3,011,09
1.21% 100.00% 0.00 1.89% 100.00% 0.00
allowanc 0.00 0.00 4.20 4.20
es are
establish
ed
individu
ally
197 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Of
which:
Accoun
ts
receivab
le for
which
the 2,488,10 2,488,10 3,011,09 3,011,09
1.21% 100.00% 0.00 1.89% 100.00% 0.00
allowanc 0.00 0.00 4.20 4.20
es are
establish
ed
individu
ally
Account
s
receivab
le for
which
202,985, 2,183,47 200,801, 156,362, 1,659,84 154,703,
the 98.79% 1.08% 98.11% 1.06%
125.41 9.18 646.23 907.90 2.23 065.67
allowanc
es are
establish
ed by
group
Of
which:
Account
s
receivab
le for
which
the
allowanc 202,985, 2,183,47 200,801, 156,362, 1,659,84 154,703,
98.79% 1.08% 98.11% 1.06%
es are 125.41 9.18 646.23 907.90 2.23 065.67
establish
ed by
group
with
similar
credit
risk
198 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
characte
ristics
205,473, 4,671,57 200,801, 159,374, 4,670,93 154,703,
Total 100.00% 2.27% 100% 2.93%
225.41 9.18 646.23 002.10 6.43 065.67
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 1 641,600.00 641,600.00 100.00% settle the amount due
Customer’s inability to
Customer 2 608,800.00 608,800.00 100.00% settle the amount due
Customer’s inability to
Customer 3 15,700.00 15,700.00 100.00% settle the amount due
Customer’s inability to
Customer 4 939,000.00 939,000.00 100.00% settle the amount due
Customer’s inability to
Customer 5 283,000.00 283,000.00 100.00% settle the amount due
Total 2,488,100.00 2,488,100.00
Accounts receivable for which the allowances are established by group:
Unit: RMB yuan
Closing balance
Item
Gross amount Allowance Allowance percentage
Within 1 year (inclusive) 164,987,899.07 525,010.55 0.32%
1-2 years (including 2 years) 36,593,300.48 1,237,290.87 3.38%
2-3 years (including 3 years) 1,403,925.86 421,177.76 30.00%
3-4 years (including 4 years)
4-5 years (including 5 years)
Over 5 years
Total 202,985,125.41 2,183,479.18
Basis for grouping：
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss, please disclose
allowance information as other receivables.
□ Applicable Not applicable
By aging:
Unit: RMB yuan
Aging Closing balance
Within 1 year (inclusive) 164,987,899.07
1-2 years 36,593,300.48
199 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
2-3 years 1,403,925.86
Over 3 years 2,488,100.00
4-5 years 939,000.00
Over 5 years 1,549,100.00
Total 205,473,225.41
(2) Allowances established or reversed in the current period
Allowances in the current period:
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Allowances for
doubtful
4,670,936.43 -642.75 4,671,579.18
accounts
receivable
Total 4,670,936.43 -642.75 4,671,579.18
Significant allowances that were withdrawn or reversed in the current period:
Unit: RMB yuan
Entity Reversed amount Way of recovery
(3) Top five entities with respect to accounts receivable
Unit: RMB yuan
Closing balance of accounts As a % of the closing balance Closing balance of
Entity
receivable of total accounts receivable allowances
Dongfang Precision (HK) 110,619,057.68 53.84%
Dongfang Precision
57,418,328.60 27.94%
(Netherland)
EDF 9,464,712.05 4.61%
Customer 11 4,186,000.00 2.04% 141,536.83
Customer 12 2,730,000.00 1.33% 92,306.63
Total 184,418,098.33 89.76%
2. Other receivables
Unit: RMB yuan
Item Closing balance Opening balance
Dividends receivable 17,840,000.00
Other receivables 511,753,075.51 444,140,266.79
200 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Total 529,593,075.51 444,140,266.79
(1) Dividends receivable
1) Dividends receivable by type
Unit: RMB yuan
Item (or investee) Closing balance Opening balance
Fosber Asia 17,840,000.00
Total 17,840,000.00
(2) Other receivables
1) Other receivables by nature
Unit: RMB yuan
Nature Closing gross amount Opening gross amount
Internal transactions with related parties 504,367,580.16 438,222,987.97
Prepaid service charges 1,088,133.50 3,277,042.22
Security deposits 1,707,512.88 1,427,885.96
Performance compensation 500,000.00 500,000.00
Employee loans and petty cash 462,946.22 1,722,721.94
Others 4,781,927.29 144,653.24
Total 512,908,100.05 445,295,291.33
2) Allowances
Unit: RMB yuan
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Allowances 12-month expected Total
credit loss (without credit loss (with credit
credit loss
credit impairment) impairment)
Balance as at 1 January
655,024.54 500,000.00 1,155,024.54
2022
Balance as at 1 January
2022 in the current
period
Balance as at 30 June
655,024.54 500,000.00 1,155,024.54
2022
Balances with significant changes in loss allowances in the current period:
□ Applicable Not applicable
By aging:
201 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Unit: RMB yuan
Aging Closing balance
Within 1 year (inclusive) 173,410,526.22
1-2 years 338,221,337.63
2-3 years 146,735.12
Over 3 years 1,129,501.08
3-4 years 93,071.45
4-5 years 197,983.00
Over 5 years 838,446.63
Total 512,908,100.05
3) Allowances established or reversed in the current period
Allowances for doubtful other receivables in the current period:
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
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
4) 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
Within 1 year /1-2
Yineng Investment Current account 439,789,674.47 85.55%
years
Within 1 year /1-2
Yinglian Digital Current account 34,277,531.87 6.67%
years
Dongfang
Within 1 year /1-2
Digicom Current account 15,020,102.96 2.92%
years
(Guangdong)
Dongfang
Within 1 year /1-2
Precision Current account 6,594,298.45 1.28%
years
(Netherland)
Dongfang Within 1 year /1-2
Current account 4,166,271.21 0.81%
Digicom years
Total 499,847,878.96 97.23%
202 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
3. Long-term equity investments
Unit: RMB yuan
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Investments in
713,603,462.76 45,303,485.99 668,299,976.77 537,302,985.41 45,303,485.99 491,999,499.42
subsidiaries
Investments in
joint ventures 76,060,326.24 76,060,326.24 74,780,345.62 74,780,345.62
and associates
Total 789,663,789.00 45,303,485.99 744,360,303.01 612,083,331.03 45,303,485.99 566,779,845.04
(1) Investments in subsidiaries
Unit: RMB yuan
Opening Change in the current period Closing Closing
balance balance balance of
Investee Additional Reduction in Impairment
(carrying Others (carrying impairment
investment investment allowance
amount) amount) allowance
Dongfang
Precision 1,856,010.00 1,856,010.00
(HK)
Dongfang
Precision 307,666.80 307,666.80
(Netherland)
54,242,190.7 54,831,076.8
Fosber Asia 588,886.13
2 5
Shunyi 305,584,828. 305,584,828.
Investment 17 17
- -
Parsun 45,303,485.9
16,583,107.8 1,047,532.15 15,535,575.7
Power 9
8 3
Yinglian 21,903,462.3 21,903,462.3
Digital 4 4
Dongfang
3,710,751.60 546,493.60 4,257,245.20
Digicom
Dongfang
Digicom 1.00 38,223.56 38,224.56
(Guangdong)
Yineng 100,000,000. 100,000,000.
Investment 00 00
EDF 977,696.67 279,341.91 1,257,038.58
203 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
Tianjin 20,000,000.0 20,000,000.0
Hangchuang 0 0
Shenzhen 173,800,000. 173,800,000.
Wonder 00 00
491,999,499. 173,800,000. 668,299,976. 45,303,485.9
Total 2,500,477.35
42 00 77 9
(2) Investments in joint ventures and associates
Unit: RMB yuan
Change in the current period
Return
Openin on Closing
Closing
g investm Adjust balance
Declare balance
balance Additio Reducti ent ment to Impair of
Investe Other d cash (carryin
(carryin nal on in recogni other ment impair
e equity dividen Others g
g investm investm zed compre allowan ment
changes ds or amount
amount ent ent using hensive ce allowan
profit )
) the income ce
equity
method
1. Joint ventures
2. Associates
Jaten 74,780, 1,279,9 76,060,
Robot 345.62 80.62 326.24
Subtota 74,780, 1,279,9 76,060,
l 345.62 80.62 326.24
74,780, 1,279,9 76,060,
Total
345.62 80.62 326.24
4. Operating revenue and costs
Unit: RMB yuan
H1 2022 H1 2021
Item
Revenue Costs Revenue Costs
Principal operations 174,984,173.72 111,562,446.47 192,965,012.06 121,408,712.13
Other operations 39,677,700.47 6,270,509.56 47,118,141.54 874,365.90
Total 214,661,874.19 117,832,956.03 240,083,153.60 122,283,078.03
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of revenue corresponding to performance obligations that had been contracted but not
yet performed or fulfilled was RMB34,288,503.53, of which RMB34,288,503.53 is expected to be recognized during 2022-2023, RMB
is expected to be recognized during , and RMB is expected to be recognized during .
Other information：
204 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
5. Investment income
Unit: RMB yuan
Item H1 2022 H1 2021
Income from long-term equity
17,840,000.00 18,992,000.00
investments measured at cost method
Income from long-term equity
1,279,980.62 1,249,209.43
investments measured at equity method
Income from the disposal of long-term
36,290,838.45
equity investments
Income from financial assets held for
1,476,638.02 9,559,565.86
trading
Total 20,596,618.64 66,091,613.74
XVI. Supplementary 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
-367,582.31
assets
Government grants through profit or loss
(exclusive of government grants given in
the Company’s ordinary course of 6,032,264.36
business at fixed quotas or amounts as
per the government’s uniform standards)
Gain or loss on fair-value changes on
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and
23,425,024.84
liabilities and available-for-sale financial
assets (exclusive of the effective portion
of hedges that arise in the Company’s
ordinary course of business)
Non-operating income and expenses
453,244.06
other than the above
Less: Income tax effects 997,616.29
Non-controlling interests effects
241,442.12
(net of tax)
Total 28,303,892.54 --
Other items that meet the definition of exceptional gain/loss:
205 / 206
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2022
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item 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 (RMB
Basic EPS (RMB yuan/share)
yuan/share)
Net profit attributable to
ordinary shareholders of the 4.08% 0.12 0.12
Company
Net profit attributable to
ordinary shareholders of the
3.30% 0.10 0.10
Company before exceptional
gains and losses
206 / 206
