Annual Report 2023
Stock Code: 603195 Stock Name: Goneo Group
公牛集团股份有限公司
GONEO GROUP CO., LTD.
Annual Report 2023
1 / 266
Annual Report 2023
Important Notes
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Goneo Group 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.
2. All the directors of the Company attended the board meeting for the review of this Report.
3. Pan-China Certified Public Accountants LLP has issued an independent auditor’s report with
unmodified unqualified opinion for the Company.
4. Ruan Liping, the Company’s legal representative, Liu Shengsong, the Company’s Chief Financial
Officer, and Shen Kewei, head of the Company’s financial department (equivalent to financial
manager) hereby guarantee that the financial statements carried in this Report are true, accurate
and complete.
5. Final dividend plan approved by the Board of Directors
As audited by Pan-China Certified Public Accountants LLP, net profit attributable to shareholders of
the Company as the parent stood at RMB3,870,135,376.47 for 2023, and the cumulative distributable
profit of the Company as the parent was RMB5,044,894,263.44 as at 31 December 2023. The 2023 final
dividend plan is as follows: Based on the total share capital (exclusive of the shares in the Company’s
repurchased share account) at the record date of the dividend payout, the Company intends to pay a cash
dividend of RMB31 (tax inclusive) per 10 shares to shareholders, with a bonus issue of 4.5 additional
shares for every 10 shares held by shareholders from capital reserves.
According to the total share capital of 891,540,875 shares minus the 46 shares in the repurchased
share account at the date when this Report was authorized for issue, the total cash dividend amount is
RMB2,763,776,569.90 (tax inclusive), and the total share capital will increase to 1,292,734,248 shares
upon the bonus issue (share capital subject to the number registered with the Shanghai branch of China
Securities Depository and Clearing Co., Ltd., with tail difference, if any, due to rounding).
Where any change occurs to the total share capital before the record date of the dividend payout, the
cash dividend and bonus issue per share shall remain the same while the total payout and bonus issue
amount shall be adjusted accordingly.
The final dividend plan is subject to final approval by the 2023 Annual General Meeting of
Shareholders.
6. Risk warning regarding forward-looking statements
√ Applicable □ Not applicable
2 / 266
Annual Report 2023
Any plans, development strategies and other forward-looking statements mentioned in this Report
shall not be considered as promises to investors. Investors and those concerned shall be sufficiently aware
of the risks and understand the differences between plans and forecasts and promises.
7. Indicate whether any of the controlling shareholder or other related parties occupied the
Company’s capital for non-operating purpose.
N/A
8. Indicate whether the Company provided any guarantee for any external party in violation of the
prescribed decision-making procedure.
N/A
9. Indicate whether over half of the directors refused to guarantee the truthfulness, accuracy and
completeness of this Report.
N/A
10. Major risk warning
The Company has described the possible risks in this Report. For further information, please refer to
the contents under the heading “Possible risks” under Item VI (IV) in “Part III Management Discussion
and Analysis”.
11. Other information
□ Applicable √ Not applicable
3 / 266
Annual Report 2023
Taking the Long Way
——To Our Shareholders
In 2023, we embraced change and innovation amidst a complex economic landscape both at home
and abroad. Thanks to our unwavering dedication, we achieved commendable results, with our operating
revenue and profit soaring to record highs as we attained robust growth across economic cycles. During
the year, we recorded operating revenue of RMB15.695 billion, up 11.46% year on year; and a net profit
attributable to our shareholders of RMB3.87 billion, representing an increase of 21.37% from the year
earlier. We further fortified our strengths in the electric connection business. Despite profound adjustments
in the real estate sector, we still managed to secure rapid growth in the smart electrical lighting business.
And, riding tailwinds, we achieved leapfrog development in the new energy business. As a result, the
visibility and reputation of our brand—Goneo—have been further enhanced.
In 2023, we were committed to innovation-driven development. Based on customer needs, we
unveiled a range of highly recognised new products, such as the Master Track Socket, the Butterfly Wing
Ultra-thin Switch, the Bladeless Fan Lamp, the “Mini Power Cabin” Socket, the Safe Charging Point, and
the Smart No-main-lamp Lighting. These inventions have elevated Goneo to new heights in terms of smart,
high-end and trendy products. Throughout the year, the Company won more than ten Chinese and
international design awards, including iF, Red Dot, IDEA, and Gmark.
In 2023, we vigorously promoted channel reform as well, converting existing store-in-stores into
flagship stores carrying comprehensive Goneo products. This has elevated both the stature of our outlets
and the image of Goneo as a provider of comprehensive products. Furthermore, we also introduced a new
retail model to achieve collaborative growth between our online and offline channels.
In 2023, we drove comprehensive brand upgrades. We joined forces with globally acclaimed light
designer Roger Narboni to launch “Murora”, an industry-pioneering no-main-lamp lighting brand that has
garnered widespread interest. Furthermore, we secured the endorsement of international supermodel Liu
Wen, who subsequently agreed to become the face of Goneo. We also collaborated with esteemed supercar
designer Fabrizio Giugiaro in crafting our Master Track Socket. Through a range of branding and digital
marketing activities, such as celebrity endorsements and KOL promotions, we have reinforced Goneo's
image as a leading trendsetter in safe electrical products.
In 2023, we pursued excellence with determination, arranging our businesses, markets, and core
capabilities from a forward-looking perspective. We also established our International Business
Department, marking our comprehensive entry into the global market. Moreover, we founded our Process
Optimisation and Digitalisation Centre and joined forces with Huawei Cloud to officially release Goneo's
blueprint for digitalisation. Additionally, construction officially began on our smart lighting industrial base
in the city of Huizhou in Guangdong Province. These arrangements have laid a solid foundation for the
Company's long-term sustainable development.
4 / 266
Annual Report 2023
In 2023, we also deepened our environmental, social, and governance (ESG) practices, vigorously
promoting the utilisation of green energy and innovation in low-carbon products. We also advanced
modern corporate governance in line with international standards. Meanwhile, we proactively fulfilled our
social responsibilities, donating a cumulative total of RMB193 million in the year to various causes such
as cultural education, healthcare, disaster relief, and poverty alleviation.
Looking ahead, we will remain committed to our three major strategies: a smart ecosystem, new
energy, and internationalisation. These efforts are guided by our principles of “taking the long way with
professionalism and devotion, and striving for No. 1”. We will also forge ahead with determination
towards our goal of RMB100 billion operating revenue, as well as our vision of “becoming a leader in the
international civil electrical industry”.
The Board of Directors of Goneo Group Co., Ltd.
April 2024
5 / 266
Annual Report 2023
Contents
Part I Definitions ............................................................................................................ 7
Part II General Information of the Company and Key Financial Indicators........... 10
Part III Management Discussion and Analysis.............................................................. 16
Part IV Corporate Governance ...................................................................................... 60
Part V Environmental and Social Responsibility ........................................................ 86
Part VI Significant Events ............................................................................................... 91
Part VII Changes in Ordinary Shares and Information about Shareholders ............ 111
Part VIII Relevant Information of Preference Shares .................................................. 126
Part IX Relevant Information of Corporate Bonds .................................................... 127
Part X Financial Statements ....................................................................................... 128
The financial statements for the year ended 31 December 2023 signed
and stamped by the legal representative, the Chief Financial Officer,
and the head of the financial department
The Independent Auditor’s Report for the year ended 31 December
Documents available for
2023 stamped by the CPA firm, as well as signed and stamped by the
reference
relevant certified public accountants
The originals of all the Company’s documents and announcements
disclosed on newspapers and websites designated by CSRC during the
Reporting Period
6 / 266
Annual Report 2023
Part I Definitions
I Definitions
The expressions in the left column in the table below refer to the contents in the right column unless
otherwise specified.
Definitions of frequently used terms
The “Company”, “Goneo
Group”, “Goneo”, or refers to Goneo Group Co., Ltd.
“we”
Reporting Period refers to The period from 1 January 2023 to 31 December 2023
Ningbo Liangji Industrial Co., Ltd., the Company’s
Liangji Industrial refers to
controlling shareholder
Ningbo Ninghui Investment Management Partnership
Ninghui Investment refers to
(Limited Partnership) , the Company’s shareholder
Xiamen Suiyuan Investment Partnership (Limited
Suiyuan Investment refers to
Partnership) , the Company’s shareholder
Ningbo Qiyuanbao Investment Management
Qiyuanbao refers to Partnership (Limited Partnership) , the Company’s
shareholder
Cixi Goneo Electrics Co., Ltd., a wholly-owned
Cixi Goneo refers to
subsidiary of the Company
Shanghai Goneo Electrics Co., Ltd., a wholly-owned
Shanghai Goneo refers to
subsidiary of the Company
Ningbo Goneo Electrics Co., Ltd., a wholly-owned
Ningbo Goneo refers to
subsidiary of the Company
Banmen Electric Ningbo Banmen Electric Appliance Co., Ltd., a wholly-
refers to
Appliance owned subsidiary of the Company
Ningbo Goneo Photoelectric Technology Co., Ltd., a
Goneo Photoelectric refers to
wholly-owned subsidiary of the Company
Ningbo Goneo Precision Manufacturing Co., Ltd., a
Goneo Precision refers to
wholly-owned subsidiary of the Company
Ningbo Goneo Digital Technology Co., Ltd., a wholly-
Goneo Digital refers to
owned subsidiary of the Company
Goneo International Ningbo Goneo International Trading Co., Ltd., a
refers to
Trading wholly-owned subsidiary of the Company
Ningbo Xingluo Trading Co., Ltd., a wholly-owned
Xingluo Trading refers to
subsidiary of the Company
Ningbo Goneo Electric Sales Co., Ltd., a wholly-owned
Electric Sales refers to
subsidiary of the Company
Goneo International Trading (HK) Limited, a wholly-
Goneo HK refers to
owned subsidiary of the Company
Ningbo Goneo Low Voltage Electric Co., Ltd., a
Goneo Low Voltage refers to
wholly-owned subsidiary of the Company
Hainan Dacheng Supply Chain Management Co., Ltd.,
Hainan Dacheng refers to
a wholly-owned subsidiary of the Company
Guangdong Murora Intelligent Lighting Co., Ltd., a
Murora Intelligent refers to
wholly-owned subsidiary of the Company
Ningbo Goneo New Energy Technology Co., Ltd., a
Goneo New Energy refers to
wholly-owned subsidiary of the Company
Shanghai Goneo Information Technology Co., Ltd., a
Information Technology refers to
wholly-owned subsidiary of the Company
Intelligent Technology refers to Ningbo Goneo Intelligent Technology Co., Ltd.
Shenzhen Goneo Intelligent Information Co., Ltd., a
Shenzhen Intelligent refers to
wholly-owned subsidiary of the Company
Domestic Electrical refers to Ningbo Goneo Domestic Electrical Appliance Co., Ltd.,
7 / 266
Annual Report 2023
Appliance a wholly-owned subsidiary of the Company
Ningbo Goneo Marketing Co., Ltd., a wholly-owned
Goneo Marketing refers to
subsidiary of the Company
Hangniu Hardware refers to Hangzhou Hangniu Hardware and Electrical Co., Ltd.
Dalitek Intelligent Technology (Shanghai) Inc., a
Dalitek refers to
majority-owned subsidiary of the Company
Liangniu Hardware refers to Hangzhou Liangniu Hardware and Electrical Co., Ltd.
Feiniu Hardware refers to Hangzhou Feiniu Hardware and Electrical Co., Ltd.
Niuweiwang Trading refers to Suzhou Niuweiwang Trading Co., Ltd.
Cixi Libo refers to Cixi Libo Electric Co., Ltd.
Yaoyang Trading refers to Yichang Yaoyang Trading Co., Ltd.
Huantian Technology refers to Hubei Huantian Technology Co., Ltd.
Jianke Trading refers to Changde Jianke Trading Co., Ltd.
Chenhao Electronic refers to Beijing Chenhao Electronic Technology Co., Ltd.
Guoxin Trading refers to Changde Guoxin Trading Co., Ltd.
Qiudi Trading refers to Hebei Qiudi Trading Co., Ltd.
The “Articles of
refers to The Articles of Association of Goneo Group Co., Ltd.
Association”
The “Company Law” refers to The Company Law of the People’s Republic of China
The “Securities Law” refers to The Securities Law of the People’s Republic of China
A-stock refers to RMB-denominated ordinary stock
CSRC refers to China Securities Regulatory Commission
The Ministry of Finance of the People’s Republic of
The Ministry of Finance refers to
China
Sinolink Securities refers to Sinolink Securities Co., Ltd.
SSE refers to The Shanghai Stock Exchange
PCCPA or the
refers to Pan-China Certified Public Accountants LLP
“Independent Auditor”
RMB Expressed in the Chinese currency of Renminbi
RMB’000 Expressed in thousands of Renminbi
refers to
RMB’0,000 Expressed in tens of thousands of Renminbi
RMB’00,000,000 Expressed in hundreds of millions of Renminbi
II Terminology
Products that are typically purchased at the discretion of
consumers and are suitable for use at home, in the office and on
Civil
other occasions for power connection, transmission, storage,
electrical refers to
conversion, control and other functions, such as adaptors, wall
appliances
switches and sockets, circuit breakers, distribution boxes, LED
lamps, etc.
Products that are produced in accordance with GB/T 2099.3-2015
Plugs and Socket-outlets for Household and Similar Purposes --
Parts 2-5: Particular Requirements for Adaptors, GB/T 2099.7-
2015 Plugs and Socket-outlets for Household and Similar
Purposes -- Parts 2-7: Particular Requirements for Extension-cord
Sockets and GB/T 2099.1-2008 Plugs and Socket-outlets for
Adaptors refers to
Household and Similar Purposes -- Part 1: General Requirements,
as well as similar foreign standards, and are commonly referred to
as adaptors in the Company.
Consumers or peer companies often call adaptors socket-outlets,
power strips, portable sockets, extension-cord sockets, or power
converters.
Power Distribution Unit. PDU is an electric connection product
PDU refers to suitable for power distribution at the data center end that can make
power distribution more orderly, reliable, safe, professional and
8 / 266
Annual Report 2023
beautiful and make power supply maintenance more convenient
and reliable.
Wall switches and wall sockets. Specifically, a wall switch refers
to a device mounted on the wall for switching on/off the current of
one or more circuits and is commonly used to control the on/off
Wall switches status of lighting lamps. A wall socket, also known as a fixed
refers to
and sockets socket, is an electrical accessory mounted on the wall, with a
socket inserted with a pin of a plug and installed with terminals for
connecting soft cables and hard wires, and is often used to provide
a power supply interface for electrical products.
Smart A novel, intelligent household appliance network that builds an
refers to
ecosystem interconnected smart home ecosystem.
Light sources that are produced using light-emitting diodes (such
LED lighting refers to as LED bulb lamps), or luminaries that are produced using LED as
a light source.
A lighting design style and lighting without the main light source,
that is, a lighting design technique through which downlights,
No-main-
refers to spotlights, light belts, track lights and other luminaries are used to
lamp lighting
create a light (light and shadow) atmosphere in a point-line-
surface combination manner.
Portable chargers that are suitable for AC charging of new energy
vehicles and special protectors used to connect household sockets
Charging
refers to and electric vehicles, with such functions as over-voltage and
plugs
under-voltage protection, over-current protection and leakage
protection.
Fixed charging devices for AC charging of new energy vehicles
that often require special wiring and installation in garages and
Charging special parking spaces, with such functions as over-voltage and
refers to
points under-voltage protection, over-current protection, leakage
protection, insulation detection, electricity billing, timed charging
and reserved charging.
A mechanical switching device that can connect, carry and
disconnect the current both under normal circuit conditions and
Circuit
refers to under specified abnormal circuit conditions. They are also known
breakers
as automatic switches and are widely used in households, factories
and other distribution circuits.
A sales model in which specialized vehicles are used to provide
Distribution,
retail stores with goods distribution, goods delivery, visit services
delivery, visit refers to
and door-to-door sales on a regular basis along a fixed planned
and sales
route.
BBS refers to Bull Business System
9 / 266
Annual Report 2023
Part II General Information of the Company and Key Financial
Indicators
I Corporate Information
Company name in Chinese 公牛集团股份有限公司
Abbr. 公牛集团
Company name in English GONEO GROUP CO., LTD.
Abbr. GONEO
Legal representative Ruan Liping
II Contact Information
Board Secretary Securities Representative
Name Liu Shengsong Jin Xiaoxue
Tower A7, 3888 Yinggang East Road, Tower A7, 3888 Yinggang East Road,
Address
Qingpu District, Shanghai Qingpu District, Shanghai
Tel. 021-33561091 021-33561091
Fax 021-33561091 021-33561091
E-mail
liushengsong@gongniu.cn jinxx@gongniu.cn
address
III General Company Information
East Zone of Guanhaiwei Town Industrial Park, Cixi
Registered address
City, Zhejiang Province
Changes of registered address N/A
Tower A7, 3888 Yinggang East Road, Qingpu
Office address
District, Shanghai
Zip code 201703
Company website http://www.gongniu.cn
Email address ir@gongniu.cn
IV Media for Information Disclosure and Place where this Report Is Lodged
Media and websites where this Report is China Securities Journal, Shanghai Securities
disclosed News, Securities Daily, and Securities Times
Stock exchange website where this Report is
http://www.sse.com.cn
disclosed
Place where this Report is lodged The Securities Department of the Company
V Stock Profile
Stock profile
Formerly used
Class of stock Stock exchange Stock name Stock code
stock name
Shanghai Stock
A-stock Goneo Group 603195 /
exchange
VI Other Information
Pan-China Certified Public Accountants
Name
LLP
Block B, China Resources Building, 1366
Domestic CPA firm Office address Qianjiang Road, Jianggan District,
appointed by the Company Hangzhou
Accountants
writing Yao Benxia, and Chen Zhuoyan
signatures
10 / 266
Annual Report 2023
VII Key Financial Information for the Past Three Years
(I) Key accounting information
Unit: RMB
2023-
Key 2022 2021
over-2022
accounting 2023
change
information Restated Before Restated Before
(%)
Operating
15,694,755,606.24 14,081,373,030.94 14,081,373,030.94 11.46 12,384,916,337.51 12,384,916,337.51
revenue
Net profit
attributable
to the listed 3,870,135,376.47 3,188,709,584.89 3,188,619,359.56 21.37 2,780,180,761.75 2,780,360,732.66
company’s
shareholders
Net profit
attributable
to the listed
company’s
shareholders 3,703,188,544.28 2,904,238,642.83 2,904,148,417.50 27.51 2,632,296,518.65 2,632,476,489.56
before
exceptional
gains and
losses
Net cash
generated
from/used 4,827,282,098.55 3,057,914,218.16 3,057,914,218.16 57.86 3,014,326,741.14 3,014,326,741.14
in operating
activities
Change
31 December 2022 of 31 31 December 2021
December
31 December
2023 over
2023
Restated Before 31 Restated Before
December
2022 (%)
Equity
attributable
to the listed 14,445,921,963.84 12,398,775,930.17 12,398,865,675.75 16.51 10,755,571,605.72 10,755,751,576.63
company’s
shareholders
Total assets 19,762,205,724.93 16,651,920,835.06 16,650,497,198.32 18.68 15,477,458,023.79 15,473,904,666.62
(II) Key financial indicators
2022 2023-over- 2021
Key financial indicator 2023 2022 change
Restated Before (%) Restated Before
Basic earnings per share
4.36 3.59 3.59 21.45 3.13 3.13
(RMB/share)
Diluted earnings per share
4.36 3.59 3.59 21.45 3.13 3.13
(RMB/share)
Basic earnings per share
before exceptional gains 4.18 3.27 3.27 27.83 2.96 2.96
and losses (RMB/share)
Up by 1.32
Weighted average return on
29.20 27.88 27.88 percentage 28.28 28.28
equity (%)
points
Up by 2.55
Basic earnings per share
27.94 25.39 25.39 percentage 26.76 26.76
(RMB/share)
points
Explanations about the key accounting and financial information for the past three years:
√ Applicable □ Not applicable
11 / 266
Annual Report 2023
The Company implemented the 2022 final dividend payout on 8 June 2023. Based on the total
share capital of 601,077,590 shares minus the shares in the repurchased share account at the record
date, a bonus issue of 0.48 additional share per existing share was carried out, and the total share
capital increased to 889,594,811shares upon the bonus issue. To ensure the comparability of basic
and diluted earnings per share, data during the prior year have been adjusted accordingly.
Net cash generated from operating activities increased by RMB1,769.3679 milllion during
2023 compared with last year, primarily driven by the decreased material costs and inventories.
VIII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
(I) Differences in net profit and equity attributable to the listed company’s shareholders under
CAS and IFRS
□ Applicable √ Not applicable
(II) Differences in net profit and equity attributable to the listed company’s shareholders
under CAS and foreign accounting standards
□ Applicable √ Not applicable
(III) Reasons for accounting data differences above
□ Applicable √ Not applicable
IX Key Financial Information for 2023 by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
(January-March) (April-June) (July-September) (October-December)
Operating revenue 3,334,141,811.90 4,258,286,219.83 4,014,398,938.17 4,087,928,636.34
Net profit
attributable to the
735,953,763.11 1,085,963,185.80 991,319,113.45 1,056,899,314.11
listed company’s
shareholders
Net profit
attributable to the
listed company’s
645,437,841.61 1,020,193,181.61 957,161,316.24 1,080,396,204.82
shareholders before
exceptional gains
and losses
Net cash generated
from/used in 1,439,163,828.60 1,539,850,319.44 1,041,360,458.80 806,907,491.71
operating activities
Indicate whether any of the quarterly financial data in the table above differs from what have been
disclosed in the Company’s past periodic reports.
□ Applicable √ Not applicable
X Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Notes (if
Item 2023 2022 2021
applicable)
Gain or loss on disposal of -5,614,733.30 -3,980,890.27 -9,714,625.18
12 / 266
Annual Report 2023
non-current assets
(inclusive of impairment
allowance write-offs)
Government grants
recognised in profit or loss
(exclusive of those that are
closely related to the
Company's normal
business operations and
given in accordance with 191,833,723.62 130,991,587.24 388,196,973.94
defined criteria and in
compliance with
government policies, and
have a continuing impact
on the Company's profit or
loss)
Gain or loss on fair-value
changes in financial assets
and liabilities held by a
non-financial enterprise, as
well as on disposal of
financial assets and 7,786,015.00 -7,385,680.00 11,107,836.63
liabilities (exclusive of the
effective portion of hedges
that is related to the
Company's normal
business operations)
Capital occupation charges
on a non-financial
331,702.44 590,062.34 8,121,324.51
enterprise that are
recognised in profit or loss
Gain or loss on assets
entrusted to other entities
190,904,769.99 279,374,491.92 171,623,256.63
for investment or
management
Gain or loss on loan
entrustments
Asset losses due to acts of
God such as natural
disasters
Reversed portions of
impairment allowances for
receivables which are
tested individually for
impairment
Gain equal to the amount
by which investment costs
for the Company to obtain
subsidiaries, associates and
joint ventures are lower
than the Company’s
enjoyable fair value of
identifiable net assets of
investees when making
investments
Current profit or loss on
subsidiaries obtained in
13 / 266
Annual Report 2023
business combinations
involving entities under
common control from the
period-begin to
combination dates, net
Gain or loss on non-
monetary asset swaps
Gain or loss on debt
restructuring
One-off costs incurred by
the Company as a result of
discontinued operations,
such as expenses for
employee arrangements
One-time effect on profit
or loss due to adjustments
in tax, accounting and
other laws and regulations
One-time share-based
payments recognized due
to cancellation and
modification of equity
incentive plans
Gain or loss on changes in
the fair value of employee
benefits payable after the
vesting date for cash-
settled share-based
payments
Gain or loss on fair-value
changes in investment
property of which
subsequent measurement is
carried out using the fair
value method
Income from transactions
with distinctly unfair prices
Gain or loss on
contingencies that are
unrelated to the Company's
normal business operations
Income from charges on
entrusted management
Non-operating income and
-
expense other than the -172,631,226.63 -58,763,095.61
327,898,293.86
above
Other gains and losses that
meet the definition of 1,712,485.52 2,739,167.53
exceptional gain/loss
Less: Income tax effects 45,407,663.66 57,894,123.94 96,291,397.10
Non-controlling
255,755.27 173,895.14
interests effects (net of tax)
Total 166,946,832.19 284,470,942.06 147,884,243.10
Items unlisted in the Explanatory Announcement No. 1 on Information Disclosure for Companies
Offering Their Securities to the Public—Exceptional Gain/Loss Items are identified as exceptional
and the items are of a significant amount, and exceptional gain/loss items listed in the Explanatory
14 / 266
Annual Report 2023
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items are identified as recurrent.
□ Applicable √ Not applicable
XI Items Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Change in the Effect on current
Item Opening balance Closing balance
period profit
Held-for-trading
6,949,000,000.00 9,727,000,000.00 2,778,000,000.00
financial assets
Derivative
643,100.00 8,263,755.00 7,620,655.00
financial assets
Receivables
1,036,801.70 5,359,014.96 4,322,213.26
financing
Held-for-trading
18,200,000.00 -18,200,000.00 18,200,000.00
financial liabilities
Other current
283,755,939.73 50,265,479.45 -233,490,460.28
assets
Total 6,968,879,901.70 9,740,622,769.96 2,771,742,868.26 18,200,000.00
XII Other Information
□ Applicable √ Not applicable
15 / 266
Annual Report 2023
Part III Management Discussion and Analysis
I Discussion and Analysis on Operations
In 2023, we embraced change and innovation amidst a complex economic landscape both at
home and abroad. Thanks to our unwavering dedication, we achieved commendable results, with
our operating revenue and profit soaring to record highs as we attained robust growth across
economic cycles. During the year, we recorded operating revenue of RMB15.695 billion, up 11.46%
year on year; and a net profit attributable to our shareholders of RMB3.87 billion, representing an
increase of 21.37% from the year earlier. We further fortified our strengths in the electric connection
business. Despite profound adjustments in the real estate sector, we still managed to secure rapid
growth in the smart electrical lighting business. And, riding tailwinds, we achieved leapfrog
development in the new energy business. As a result, the visibility and reputation of our brand—
Goneo—have been further enhanced.
In 2023, the Company's brand value reached a new high, ranking 351st among World Brand
Lab China’s 500 Most Valuable Brands 2023 with a brand value of RMB24.567 billion. The
Company's subsidiaries, Goneo Low Voltage and Intelligent Technology, were recognised for the
first time as high-tech enterprises. The project “Pilot Demonstration of Electrical Products and
Appliances Supply Chain Collaboration Based on Industrial Internet Platform” was successfully
selected to be on the list of “National Pilot Demonstration of Industrial Internet” by the Ministry of
Industry and Information Technology of China. In addition, the Company was named one of the
“Top 100 Manufacturing Enterprises of Zhejiang Province”, one of the second batch of Zhejiang's
"Cloud-based Enterprises", and a Zhejiang "Eagle Enterprise" (Technology Leadership Type),
among other honours.
In 2023, the Company achieved remarkable results as follows:
(I) The electric connection business continued to drive product upgrades, and
strengthened Goneo as a trendy and high-end brand.
In 2023, the electric connection business adhered to its positioning as an “Expert in Safe
Electricity Use”, continually innovating and upgrading products around consumer demands. It led
the trends towards younger, more upscale, and smarter industry developments. Over the year, this
business achieved revenue of RMB7.387 billion, marking a 4.77% increase compared to the
previous year.
1. Product side:
(1) Adaptors
In 2023, our adaptors focused on innovation in three key directions: addressing the upgraded
needs of users, pinpointing requirements in niche scenarios, and catering to distinctive demands in
international markets.
Regarding user upgrade demands, aligned with trends towards younger demographics,
premium offerings, and smart technology, the adaptors underwent significant enhancements
16 / 266
Annual Report 2023
including the launch of highly popular product series such as the Track Socket, the High-aesthetic
Socket, the Global Travel Converter, and the Generation Z Socket Series. In 2023, we collaborated
with esteemed supercar designer Fabrizio Giugiaro in crafting our Master Track Socket, featuring
mechanical safety shutters and an intelligent LCD display. This industry-first smart design reaffirms
Goneo's leadership in niche markets. Our High-aesthetic Socket breaks the mould of traditional
designs by combining stunning looks with high performance, and incorporating gallium nitride fast-
charging technology to redefine the aesthetic appeal of desktop sockets. In response to the explosive
travel demands in the post-pandemic era, we systematically upgraded our travel converter series to
compact, multifunctional Fast-charging Travel Converter Series, bolstering our presence in the
rapidly growing business travel segment. Addressing the trend towards a younger consumer base,
this year also saw the launch of the cost-effective, stylish Generation Z Socket Series, invigorating
the youthful brand image of our adaptors with their vibrant product designs.
For niche scenario pain points, based on user research, the Company introduced a series of
innovative products in 2023. Addressing specific needs such as overcharging protection for electric
bikes, accessing power in tight spaces, and powering high-capacity devices, the Company launched
products including the overcharge protection socket for electric bikes, extension cord, and a 16A
adaptor plug, continuously refining the electrical experience in segmented user scenarios. Our
products like PDUs and industrial connectors, targeting B2B sectors such as data centre power
distribution and factory production, have also been well-received in the market. For electricians
seeking ultimate safety and value for money, our economical multi-outlet adaptors, professional-
grade, and electrical accessory products further solidified our industry-leading position.
To better advance our internationalisation strategy, in 2023, the adaptor business leveraged
local market research and consumer insights to innovate products tailored for the Southeast Asian
market. We planned and launched several locally adapted innovative products, offering competitive
and differentiated user experiences to international consumers, effectively enhancing our brand
recognition and reputation abroad.
(2) Digital accessories
In 2023, Goneo Digital continued to pursue a strategy of third-party premium offerings. Based
on a deep exploration of all-scenario electricity needs and keen market insights, a series of
innovative products were launched. For multi-scenario, small-volume socket needs, the Company
broke through industry technological barriers with innovative structural and industrial designs to
introduce the "Mini Power Cabin" Socket, meeting dual demands for functionality and performance.
For desktop electricity usage scenarios, the Company introduced a vertical smart display socket that
features all-around power access, safety, and space-saving benefits, making it a preferred choice for
digital product setups. Addressing fast-charging scenarios, the Company combined its proprietary
"Automatic Power-Off When Full" technology to introduce gallium nitride overcharge protection
chargers, enhancing the battery health of digital devices. For wireless charging scenarios, Goneo
17 / 266
Annual Report 2023
launched a new magnetic suction wireless portable charger, significantly improving the charging
experience in mobile settings.
2. Channel side
Electric connection products are primarily sold through the Company’s traditional strengths in
offline hardware channels, digital channels, and e-commerce. Currently, the Company has over
750,000 hardware channel outlets and over 250,000 digital channel outlets, with a widely distributed
network of end points that can provide consumers with quality products and services promptly and
conveniently.
In 2023, the hardware channels continued to deepen the "Distribution, delivery, visit and sales"
system, strengthening channel capabilities. Centred around adaptors and leveraging synergies with
electrical tape, dry batteries, and power tools, measures such as improving store displays and
creating dedicated sales areas enhanced per-store efficiency and output, effectively driving sales
across various products while increasing the loyalty between end-point sales locations and customer
groups. Additionally, the Company actively developed new channel outlets like boutique stores,
trendy toy shops, stationery stores, and high-end supermarkets to promote an upgrade in store
formats and enhance the brand image. The operational capabilities of the Company’s hardware
channels have continuously improved through lean product planning, market strategies,
empowering distributor teams, supporting weaker markets, upgrading customer management
systems, and new media marketing tools, effectively enhancing operational efficiency and reducing
business risks.
Digital channels continued to diversify, including mobile repair shops, digital accessory stores,
small convenience stores, points malls, and gift channels, using mobile batteries and similar
categories to drive store upgrades towards service-oriented directions, offering consumers
integrated products and solutions. Channels also built lean marketing capabilities and short-video
streaming for local marketing, enabling traffic for end-point stores and collaborating with online e-
commerce channels to rapidly drive business growth.
In 2023, the online e-commerce channels continually consolidated the industry-leading
position of the electric connection category, with track socket sales reaching new heights and market
share continuing to climb on a high base, driving overall industry growth and consumer upgrades.
The Company’s e-commerce channel has progressively established a full-link, refined management
from innovative product development to hit product creation, further strengthening the product
innovation advantage, while also accelerating the construction of emerging platform channels,
creating differentiated layouts based on the marketing characteristics of various e-commerce
platforms, establishing a frontline communication with consumers, and steadily enhancing Goneo’s
electric connection category’s market position across the online channels.
3. Supply chain side
The Company has established a comprehensive, vertically integrated supply chain in the
electric connection manufacturing sector. Starting with the processing of raw materials such as
18 / 266
Annual Report 2023
copper and plastic particles, we have moved towards in-house production. With ongoing
enhancements in lean supply chain management, automation, and informatisation, the Company has
developed significant competitive advantages in quality, cost, and efficiency.
In 2023, our adaptor factories utilised new-generation information technologies such as
industrial internet and artificial intelligence to pioneer new delivery models like network
collaboration and personalised customisation. This led to the initial realisation of digital design,
intelligent production, smart management, collaborative manufacturing, and secure control with
data interconnectivity. These advancements earned the factory accolades as Zhejiang Province’s
"Mobile Socket Smart Factory" and Ningbo’s "Factory of the Future". Additionally, continuous
innovation and optimisation in production processes, such as promoting modular and resistance
welding techniques, have enabled the automated mass production of wireless products, significantly
boosting production efficiency.
The digital factory, targeting "high flexibility and rapid delivery", has embraced lean factory
transformation and piloted the "small and micro business entity" model with USB cable products,
focusing on "increasing output and reducing input". This approach has driven a rapid closed loop in
research, production, and sales, resulting in notable improvements in per capita output and inventory
turnover rates. In automation applications, the continuous introduction of lean equipment and
implementation of regional automation have led to the establishment of an automated benchmark
line for surge-resistant products. In process development, the capability to produce "high power,
small volume" product lines has been swiftly established, from surface treatments to production
testing, and from lamination processes to high-precision welding, continuously enhancing our
capabilities.
4. Brand side
The Company firmly adheres to its brand positioning as an “Expert and Leader in Safe
Electricity Use”, aligning key projects with the brand. Through synchronised updates across online
and offline endpoints, official websites, and new media at all consumer touchpoints, we have
facilitated an enhancement of the brand value. In 2023, leveraging innovative products and
employing media channels with high interactivity, wide coverage, and precise targeting, we
assembled resources including celebrities, influencers, designers, and the media. We launched
multiple rounds of brand communication campaigns around new products like the Master Track
Socket and the "Mini Power Cabin" Socket. This elevated the profile and popularity of our
representative electric connection categories, rejuvenating consumer perceptions of trendy, high-
value and well-designed products, and receiving positive market feedback.
(II) The smart electrical lighting business created a trendy and high-end product
ecosystem, vigorously promoted the channel reform featuring "flagship stores + new retail
model", and achieved sustained growth across economic cycles.
In 2023, the Company was committed to creating an ecosystem of smart pre-decoration
electrical products with smart no-main-lamp lighting as the core, and comprehensive pre-decoration
19 / 266
Annual Report 2023
products have been covered, including wall switches and sockets, LED lighting, bathroom heaters,
circuit breakers, smart door locks, and smart clothes drying racks. To adapt to the changes in
consumption habits, new progress has been made in vigorously promoting the reform of the new
retail pattern featuring "physical flagship stores + online traffic acquisition", meeting the consumers'
needs for "one-stop shopping + experience", and tackling the challenges concerning in-depth
adjustments in the real estate sector. In the year, the smart electrical lighting business achieved
revenue of RMB7.902 billion, representing a year-on-year growth of 15.37%.
1. Product side
(1) Wall switches and sockets
In 2023, the Company's wall switches and sockets strategy centred around "steadily
establishing the foundation, targeting high-end markets, making insights into new opportunities,
and promoting product innovation". This approach continued to optimise a tripartite combination of
basic, high-end, and smart products, with strategic new products and innovative items progressing
in parallel, enabling us to maintain a leading position in the competitive market.
In line with our brand upgrade strategy and consumer pursuit of home aesthetics, in 2023, the
Company launched the Butterfly Wing Family of Ultra-thin Switches, which were well-received for
their excellent industrial design and user experience, setting a new industry standard for ultra-thin
profiles. The Company also introduced the Cream Style Switch and Socket, closely following
popular home decor trends and meeting the aesthetic shifts and detailed preferences of the post-90s
generation. Additionally, to cater to consumers' varied material preferences, we launched the Glass
Switch and Socket, further strengthening the competitiveness of our mid-to-high-end products.
Simultaneously, the Company delved deep into user needs research and identified pain points in
various segment scenarios, resulting in the launch of several innovative products such as invisible
sockets, flush-to-floor sockets, and voice-activated switches.
Furthermore, targeting overseas and B2B markets, the Company actively carried out the
planning and development of wall switch products. Catering to the differentiated needs of various
consumer groups and clients, we enhanced our platform-based, modular structural designs,
improving product flexibility and expandability, and established an efficient product development
process.
(2) LED lighting
Adhering to the positioning of "eye-caring", and oriented to meeting the needs for light in space
and behaviour, the Company tapped into customer demand based on different customer groups and
different application scenarios, and continued to push forward the research of "light" and the
innovation and application of optical design. It made technological innovation in the directions of
"anti-blue light", "visible flicker-free", "full spectrum", "high index", "anti-glare", "comfortable
colour temperature", etc., and is committed to providing consumers with a comfortable, healthy
light environment.
20 / 266
Annual Report 2023
In 2023, the basic light source business was driven by high targets, focusing on exploiting new
opportunities and developing major products. The Company actively innovated, developing and
launching several new categories including second-level energy-efficient flat panel lights, high-
brightness ceiling lights, tri-proof lights, and solar street lights. These efforts continually enriched
and expanded the product line, gradually perfecting the space lighting solutions for small to
medium-sized engineering projects and commercial users following our home lighting solutions.
The decorative lighting business prioritised "eye-caring technology", intelligent controls,
platformisation, and standardisation as key directions for business development. In 2023, the
Company completed a comprehensive upgrade of its decorative lighting products, covering a range
of design styles including "modern and simple" and "understated luxury", and highlighting features
such as "ultra-thin", offline voice control, and "quick-installation structures". To meet higher user
expectations for the appearance, quality, and lighting effects of fixtures, we introduced the flagship
eye-care product, the "Goneo Natural Light Series". This product uses a full-spectrum light source
that closely mimics natural light, providing a comfortable lighting experience and an ultra-thin,
minimalist design, which received positive market feedback. Furthermore, the competitiveness of
our luminary products was comprehensively enhanced. The Company launched the new T02PLUS
Downlight Series, which are noted for their high quality feel and deep anti-glare properties; and the
T01PLUS Series, positioned as the ultimate cost-effective metal downlight, also showed strong
market competitiveness.
The portable lighting business continued to focus on reading and supplementary lighting
scenarios. For reading scenarios, we successfully launched the new generation of eye-caring desk
lamps – the Xingyue Series. This series underwent a complete upgrade in optical technology,
utilising honeycomb anti-glare technology to effectively reduce both direct and reflective glare, thus
minimising eye damage. It innovatively employs dual three-dimensional lighting effects to achieve
uniform and extensive lighting. This product has received the highest AAA-level certification from
the SMQ Health Lighting Product Certification, the highest AA-level under the Performance
Requirements for Table Lamps for Paper Task GB/T 9473-2017, and certification for Prevention
and Control of Myopia in Children and Adolescents. For supplementary lighting scenarios, we
introduced decorative lighting that fits user needs – the Cat Eye Cabinet Light. Its small hillock light
shape adds different levels to the lighting arrangements in homes, greatly enriching consumers'
lighting scenarios.
(3) Smart no-main-lamp lighting
Focusing on consumers' upgraded demand for minimalist decoration style and intelligent light
experience, the Company has made smart no-main-lamp lighting a key development direction for
its lighting business and is committed to creating a healthy, comfortable and professional light
environment and convenient control experience for users, better interpreting the lighting levels and
light atmosphere of a space. The Company promotes the rapid development of its no-main-lamp
lighting business through the dual-brand strategy of Goneo and Murora.
21 / 266
Annual Report 2023
The Goneo brand focuses on high cost-performance no-main-lamp lighting. In 2023, the brand
introduced several high-quality, cost-effective product series including the T04, T03 Plus, and P06
anti-glare downlight series; S04 ultra-narrow magnetic track light series; high Colour Rendering
Index ("CRI") COB soft light strips, and SMD bright light strips. Among these, the P06 deep anti-
glare "small hillock" wall washer light quickly gained market recognition as a successful example
of product definition meeting user needs.
The Murora brand is dedicated to providing consumers with integrated smart lighting solutions.
In 2023, Murora no-main-lamp lighting, in collaboration with international lighting masters,
launched professional lighting packages that include downlight, rail light, strip light, ambient light,
and Murora MOS system. The Master T200 and S100 series are industry leaders in design, user
experience, and optical platforms, and quickly won the G-Mark award upon release. The proprietary
Murora MoS system focuses on the core lighting needs of users, continuously optimising and
iterating the user experience in dimensions such as mass appeal and quality experience. Together
with smart screens and peripheral series ecosystem products, it enables linked home scenarios,
providing users with a comfortable smart home experience.
(4) Ecosystem-based products
To meet consumers' needs for one-stop shopping during pre-decoration, the Company shifts
from providing products to providing better scenario-based solutions, constantly iterating and
innovating products such as bathroom heaters, smart door locks, smart clothes drying racks, smart
curtain machines, fan lights and circuit breakers. A household pre-decoration intelligent ecosystem
with smart no-main-lamp lighting as the core has been in shape.
In 2023, the Company's domestic electrical appliances business steadfastly adhered to a user-
centric philosophy, attuning to trends in home decor, demographic characteristics, usage contexts,
habits, and insights into consumer pain points to capture the differentiated demands for various
spatial scenarios. In the bathroom scenario, the Company introduced the Y30 series of bathroom
heaters, conceptualised around the "Heaven Round, Earth Square" design philosophy, the Y18
quick-heating bathroom heater utilising new materials and technologies, and the M02 electric warm
air dryer, all notable for their aesthetically pleasing designs and superior performance. In the dining
and bedroom scenarios, products such as the ultra-thin invisible fan lamp and the bladeless fan lamp
were launched, which garnered multiple national and international design awards. The bladeless fan
lamp broke industry conventions with its novel appearance, technology, and user experience,
earning widespread acclaim from both the industry and consumers. For the balcony scenario, in
2023, the Company introduced the "Ultra-thin Cicada Wing" J04 series and the linear J06 series of
clothes drying machines, aligning with the aesthetic preferences of younger consumers and meeting
the evolving demands of home decor and aesthetic spatial arrangements.
In 2023, the circuit breaker business continued to innovate on its existing home decor product
platform, focusing on "easy installation, ease of use, and superior service" to further enhance the
home decor product line. It also developed and expanded products specifically for factory
22 / 266
Annual Report 2023
engineering clients and niche new energy industry scenarios, adding a series of industry-specific
products including high-voltage DC, miniaturisation, and smart technologies. Additionally,
capitalising on market opportunities, the Company expanded its range in the instrumentation sector,
launching several types of electric meters and progressively moving towards smart, platform-based
solutions, helping to solidify its presence in the leading home decor market channels.
The smart door lock business in 2023 continued to explore and gain insights into the home
entry scenario and deepened its in-house and platform-based strategies. By creating flagship
products, the entire line was optimised for performance with a competitive strategy of standard
"peephole + screen" configurations, effectively lowering the entry barriers for smart door locks and
eliciting an excellent market response. The newly launched high-end flagship "Pianai" series
featured a unique eccentric handle design, winning multiple international awards. Its in-house
developed new generation Dynamic integrated drive not only enhanced the lock's performance
stability and smoothness but also significantly improved battery life. In 2023, Goneo’s safety smart
locks Q04PF PRO and Q32P were among the first globally to receive the "TV Rheinland
Certification" jointly issued by TV Rheinland and the Ministry of Public Security's Testing Center
in China, as well as being among the first in the lock industry to be awarded the "CQC Certification"
by the China Quality Certification Centre, providing users with smarter, safer, and more user-
friendly smart door locks through high technology and quality.
2. Channel side
Smart electrical lighting products are primarily sold through the Company’s traditional
strengths in offline decorative channels and online e-commerce platforms. From 2023, we began
building the Murora no-main-lamp lighting channel from scratch. Currently, the Company boasts
over 120,000 decorative channel sales points. In recent years, the Company has actively aligned
with consumer trends by expanding towards home decoration companies and by vigorously
promoting comprehensive and specialised upgrades in stores to better serve the one-stop buying
needs at the pre-decoration stage of home refurbishments.
In 2023, the decorative channels facilitated the market penetration of wall switches and sockets,
LED lighting, domestic electrical appliances, Goneo no-main-lamp lighting, and smart door locks
into county and town markets. This year also saw the initiation of a comprehensive flagship store
construction plan, which significantly drove the development of all product categories. In line with
industry trends, the decorative channels energetically expanded top-tier decoration enterprises to
create home electrical solutions centred around no-main-lamp lighting, wall switches, and track
sockets. Meanwhile, through the development of smaller decoration firms and small-to-medium
projects, new strategic growth channels were established. In 2023, the decorative channels actively
utilised the Bull Business System’s methodological tools to empower channel partners, enhancing
channel capabilities through lean market planning, value sales, and lean retail strategies.
The smart electrical lighting products saw sustained growth in online e-commerce channels in
2023. Wall switches led the brand’s upgrade to high-end and stylish with the online ultra-thin large
23 / 266
Annual Report 2023
panel series, achieving a breakthrough in overall online market share; the flagship store for the
lighting category has become a benchmark in the industry; innovative products such as the bladeless
fan lamp achieved breakthrough growth. The Company maintained robust growth on traditional
strength e-commerce platforms like Tmall and JD.com, leading the industry, while simultaneously
accelerating layouts on emerging platforms like Douyin and Pinduoduo. For the decorative
channel’s flagship stores, new retail models introduced are gradually utilizing digital methods to
blend online and offline traffic, capturing consumer needs more accurately, driving product
innovation and service upgrades, effectively integrating resources, and enhancing operational
efficiency.
In 2023, the Murora no-main-lamp lighting professional channel completed a systematic
construction of its marketing network, rapidly assembling a nearly 100-person professional team,
forming an efficient channel structure of company-dealer-Murora experience store. Murora stores
now broadly cover all provincial capitals, most prefecture-level cities, and economically developed
regions across the country. To ensure smooth business development, the Company specifically
established an empowerment team, creating an integrated training system of "tell, teach, practice,
lead", combining online and offline elements, focused on empowering storefronts in customer
acquisition, lighting design, and store operations. In 2023, nearly 300 marketing-oriented lighting
designers and outstanding store sales management personnel were trained and certified, and digital
tools were developed to assist storefronts in efficient operations, laying a solid channel foundation
for the sustainable development of Murora no-main-lamp lighting.
B2B channels have actively explored engineering project businesses, becoming an important
switch partner for construction projects in regions such as Beijing-Tianjin-Hebei, Chengdu-
Chongqing Economic Circle, and the Guangdong-Hong Kong-Macao Greater Bay Area, and
focusing on creating benchmark projects in affordable housing, education, hotels, and corporate
infrastructure; continuing to focus on expanding the business of fully furnished properties, securing
ongoing cooperation with top real estate companies like Taikang, Poly, and Longfor.
3. Supply chain side
Leveraging years of accumulated manufacturing management expertise, the Company has
established a deeply integrated supply chain system around various categories of its smart electrical
lighting business. Wall switches benefit from globally leading manufacturing bases in terms of scale
and efficiency. The manufacturing strengths of basic light sources and decorative lighting are
increasingly evident, while other ecosystem businesses focus on in-house research and production,
actively promoting lean, automated, and digital supply chain developments. These initiatives have
yielded substantial results in delivery achievement, quality assurance, and cost control.
In 2023, our wall switch factory pioneered the industry's first fully automated production line
for switch panels, achieving complete automation from incoming materials to finished product
packaging. Utilizing AI online analysis software integrated with a CCD imaging system, we
conducted precise quality management in real-time. Through the optimisation of 5G base station
24 / 266
Annual Report 2023
coverage, we significantly improved the accuracy and timeliness of equipment data collection,
anomaly alerts, personnel deployment, and unmanned AGV scheduling, further ensuring production
stability. Additionally, on the foundation of core business process digitalisation and factory
digitisation, the wall switch factory has solidified its production and sales "hub" and supply chain
"CPU" through the implementation of APS 3.0 and control tower structures, achieving "digital
intelligence connectivity" from sales to delivery.
The light source factory increased its investment in production process innovation in 2023,
leading the industry in multiple production efficiency and quality indicators. It developed the
industry's first efficient man-machine combination line for spotlight production, the first unmanned
assembly line for column lights, and the first integrated assembly and packaging line for light strips,
greatly enhancing product competitiveness.
In 2023, the decorative lighting factory, recognising the characteristics of LED variety in small
batches, primarily used automated and small-scale flexible production lines to ensure the flexibility
of deliveries. Targeted lean improvements and upgrades were made to establish a benchmark factory
with extremely low costs. In line with product upgrade and iteration needs, investments were made
in bedroom lights, upgraded M32 ceiling lights, T32 downlights, and others, covering a full range
of automated production lines that employ industry-leading technologies such as robotics, visual
recognition, and automated testing. The use of TPM, DM, and other lean methodologies has created
an integrated management approach to production technology, substantially improving overall
production efficiency. On the digital implementation front, comprehensive deployment of APS
(Automatic Scheduling System), AMS (Automated Material Management System), and WMS
(Warehouse Management System) has achieved full-chain information management from the
supplier side to finished goods warehousing. Building on the existing MES, we deeply integrated
the DM process to establish a digital system for work order and anomaly management, further
enhancing management and operational efficiency.
In 2023, the smart lighting (no-main-lamp lighting) factory pioneered within the industry by
achieving 100% production testing of light sources, ensuring uniformity in light colour, and
introducing an industry-first online ageing process through in-house developed equipment to
guarantee product quality. The completion of capacity building in the injection moulding and SMT
workshops enhanced mould improvement and electronic capabilities. The preliminary setup of the
"Sparrow Factory" model has been achieved, enabling in-house production of certain key
components. Looking towards long-term business development, the Company has initiated the
construction of the intelligent no-main-lamp lighting industrial base in Huizhou Zhongkai Hi-tech
Industrial Development Zone. This project has now entered a substantive construction phase and,
once completed, will serve as the Company’s research and intelligent manufacturing centre in the
Guangdong-Hong Kong-Macao Greater Bay Area.
The domestic electrical appliances factory continued to implement lean improvements in 2023,
developing a vertical supply chain and achieving 100% in-house production of core components
25 / 266
Annual Report 2023
such as motors, PCBA, sheet metal parts, and injection moulded parts, thereby continually
enhancing the core capabilities of the supply chain. The lean layout facilitated a production model
that integrates the same base, building, floor, and area, highly integrating manufacturing units and
utilising a BMS full value chain pull system. Improvements in purchasing loops and supplier direct
JIT delivery ensure a stable supply-demand system. In terms of quality, immersive improvements
empower suppliers to continuously enhance component yield rates, ensuring product quality.
Additionally, the implementation of an automated production line for bathroom heaters has
established a platform-based, functionally modular, and component-standardised production system,
laying a solid foundation for long-term development of smart factories.
In 2023, the circuit breaker factory overcame several challenges, including silver spot non-
destructive welding and integrated hot riveting welding processes, successfully achieving 100%
automation coverage of critical micro-break processes. The introduction of integrated magnetic and
thermal welding systems and automatic white pole assembly equipment has placed it at the forefront
of industry manufacturing. On the digital implementation front, the comprehensive introduction of
the BMS system effectively addresses issues such as material shortages, complex processes, process
wastage, and inventory turnover. Combined with the establishment of the Sparrow Factory and the
use of VSM tools to thoroughly review and adjust the product’s full value chain, the factory has
reduced discontinuities to achieve continuous flow, pushing for reductions in inventory, increased
efficiency per square meter, and improved timeliness of deliveries. Automatic deployment of
equipment parameter recipes and inter-process data error-proofing effectively track the full process
data of product testing and optimise parameters, enhancing product consistency and supporting
quality improvements.
In 2023, the smart door lock factory established fully automatic and semi-automatic production
lines, achieving platform-based, functionally modular, and standardised component production,
while striving to develop a vertical supply chain. Core components such as die-casting, PCBA, and
injection moulded parts are now produced in-house, continually reducing product costs and
enhancing product quality.
4. Brand side
The Company has vigorously promoted the Goneo brand within the smart electrical lighting
sector to enhance both its visibility and reputation. In 2023, we launched several brand promotion
and new product campaigns, including the "Butterfly Wing Ultra-thin Switch High-End Fashion
Campaign" and the "Bladeless Fan Lamp Innovative Category Breakthrough Campaign". These
initiatives leveraged the partnership with the aerospace sector, the official announcement of the
brand ambassador, and the cooperation with well-known home designers, generating lively
discussions on platforms like Douyin, where keywords like "ultra-thin" and "butterfly wing"
dominated the home renovation industry rankings. This significantly enhanced the fashion
perception of Goneo switches among users and interior designers. Additionally, offline decorative
26 / 266
Annual Report 2023
channel flagship stores also served as crucial media for brand promotion, where an appealing store
image effectively strengthened consumer trust and enhanced the Goneo brand’s reputation.
2023 marked the inaugural year for the "Murora" no-main-lamp lighting brand. The Company
utilised various activities for an all-around brand introduction to the industry and consumers,
including a brand launch event, the opening ceremony of the Murora flagship store in Zhongshan,
Guangdong, the Guangzhou International Lighting Exhibition ("GILE"), and Dragon TV's "Dream
Home". Murora collaborated with its chief lighting consultant, the founding president of the
Association Des Concepteurs Eclairagistes ("ACE") and the lighting designer of Notre-Dame de
Paris, to release a comprehensive home lighting solution and intelligent control systems, sparking
industry discussions on the relationship between light and living spaces, and the layered needs for
a healthy lighting environment in homes. The traction from the brand side and continually increasing
consumer recognition have laid a solid foundation for the smooth development of the business.
(III) The new energy business swiftly enriched product offerings, increased
competitiveness across the board, such as technology, supply chain, and channels, and
achieved leapfrog development.
In an era marked by changes in energy structures, the Company’s new energy business,
leveraging on its electrical technologies and brand advantages accumulated over the past years,
quickly completed the transition of product lines and channels from alternating current to direct
current, from slow charging to fast charging, from single charging point to group charging, from
charging to energy storage, and from business-to-consumer (To C) to business-to-business (To B),
which enables users to enjoy products and services featuring safety, convenience and efficiency and
ensures the rapid growth of this business. In 2023, the new energy business achieved revenue of
RMB380 million, representing a year-on-year growth of 148.64%.
1. Product side
(1) New energy vehicle charging plugs/points business
In 2023, our new energy business focused on enhancing the comprehensive scenario-based
charging and discharging experience for electric vehicles, continually perfecting the product layout
and engaging in ongoing personalisation and innovation.
For the consumer market ("C-end"), we met segmented user needs through trend-based user
research by developing an innovative aluminium extruded integrated "portable charging points",
which accommodates multiple charging scenarios including "fixed charge", "multi-point fast
charge", and "portable charge". The technologically inspired design of this station received the
German iF Design Award, garnering positive market feedback. To enrich user options, following
the classic style charging point, the Company launched the Enjoy Smart Charging Point with power
coverage of 7 kw/11 kw/21 kw, compatible with the majority of mainstream new energy vehicle
models. These stations feature a 2.8-inch clear display screen that allows users to monitor charging
status in real-time, which has been highly praised by users. As the use of electric vehicles in outdoor
scenarios (such as camping, car washing, and vehicle rescue) increases, the Company innovatively
27 / 266
Annual Report 2023
developed discharge adapters and surge-protected extension sockets, supporting high power and
multiple types of electrical equipment.
For the operator market ("B-end"), the Company rapidly deployed fast-charging direct current
points represented by group charging. By using a full matrix topology circuit and integrating with
cloud platforms or mobile terminals, these charging points achieve true dynamic power distribution,
making the charging system more intelligent and efficient. Through multi-module parallel design,
these charging points prevent single-module failures from impacting usability, effectively
enhancing equipment reliability. Additionally, group charging products can be power-scaled
according to demand, support remote fault diagnostics, and remote OTA and USB-OTA updates on
the operational platform, significantly improving the equipment's scalability and advanced
applicability. In terms of core components, to enhance the overall stability and leading edge of the
direct current charging points, the Company has independently developed a new core power module
using the Vienna rectifier circuit design, achieving efficient power conversion and energy regulation.
The Company's full potting process design enhances the sealing, moisture resistance, shock
resistance, and heat dissipation of electronic products, significantly increasing the stability,
reliability, and durability of the products.
(2) Energy storage business
In 2023, the Company fully engaged in the energy storage sector, strategically positioning itself
in the European market for residential energy storage and in the domestic market for commercial
and industrial energy storage. Following initial consumer demand and industry pain point analysis,
the residential energy storage solutions underwent differentiated design in several aspects including
safety, ease of installation, system, and structure: these products feature an integrated fire safety
module, dual-level active electrical protection, automatic battery module recognition, battery quick-
connect terminals that require no wiring, support for up to 100 A high-current charging and
discharging, and a pre-configured diesel generator interface. To better meet the needs of domestic
small and medium-sized commercial and industrial users for new energy storage and the
management of industrial electricity demand peaks, the Company launched a 125 kw, 230 kwh
liquid-cooled commercial and industrial energy storage cabinet. The AC side supports installation
of up to 32 units in parallel, with a one-way conversion efficiency that reaches industry-leading
levels; the product includes a triple fire safety design, features transformer load tracking capability,
and can intelligently adjust its power input; additionally, it has a full power backup supply
functionality, capable of off-grid full power output, serving as a backup power source for
commercial and industrial use, accommodating various corporate electricity scenarios.
Moreover, to continue building a competitive edge in new energy technologies for the future,
the Company not only scans and tracks pioneering opportunities and technologies but has also
established a close collaborative research and development partnership with well-known
universities with strong research capabilities within the industry. This collaboration focuses on
"integrated photovoltaic storage and charging" and thermal management. Additionally, the
28 / 266
Annual Report 2023
Company actively participates in setting standards in the new energy electricity sector, working
alongside relevant departments, professional associations, and leading industry participants to
jointly promote the healthy and orderly development of the industry.
2. Channel side
In 2023, the Company vigorously expanded the domestic offline market for new energy
charging points, focusing on the purchasing needs of individual consumers and operator clients. It
innovated a "four-drive marketing" model to comprehensively boost sales growth. In terms of
channel development, we continued to enhance the number and coverage of outlets nationwide,
providing consumers with a more convenient purchasing experience. The C-end channels were
specifically expanded into new energy automotive trade stores and car beautification shops among
other professional distributors. By the end of the Reporting Period, the Company had developed
over 17,000 terminal outlets, initially establishing a sales and service network that spans urban and
rural areas. The B-end channels focused on covering government agencies, enterprises, properties,
and charging station scenarios, developing clients through precise customer profiling, solidifying
methodologies for government and enterprise project development, and refining Goneo's
benchmark operational station integrated construction plans, significantly enhancing expansion
efficiency. By the end of the Reporting Period, over 1,500 operator clients had been developed,
actively responding to and effectively following the national policy guidance for the construction
of public new energy vehicle charging infrastructure. Moreover, the Company has established
strategic partnerships in product and technology areas with companies such as the China Tower,
State Grid, Geely Farizon, and Seres. In terms of services, for C-end home charging points, a "one-
stop installation" service system has been constructed. After two years of continuous effort, Goneo
New Energy AC charging point installation after-sales service was awarded the Electric Vehicle
Charging Facility Installation Service Provider Certificate by TV Rheinland, one of the top five
global authoritative certification bodies and a leading authority in the domestic new energy charging
point installation service sector. For B-end customer services, the Company offers a variety of
models including charging points + commercial and industrial storage devices, integrated
photovoltaic-storage-charging solutions, and operator ecosystem cooperation. These services
empower partners in design planning, installation construction, operational lead generation, station
maintenance, and resource integration, providing clients with high-quality products and rapid-
response after-sales service.
Additionally, as an important purchasing channel for C-end consumers, the online e-commerce
channel has been collaboratively developed. The Company has established an official flagship store
for the car charging category and has progressively perfected the system of professional industry
distributors and layouts across major e-commerce platforms, with the Company’s products
maintaining a leading market share among third-party brands.
In 2023, the Company actively explored and validated the commercial and industrial energy
storage business sector through marketing models, financial cooperation methods, and industry
29 / 266
Annual Report 2023
studies, as well as through pilot developments for dealers and factories. It summarised and
accumulated marketing methodologies, accelerating the construction of marketing capabilities for
the energy storage business.
3. Supply chain side
Since its establishment, the Company's new energy factory has made manufacturing
technology innovation a core competency, gradually deepening the vertical supply chain layout
from scratch and continuously enhancing quality, cost, and efficiency advantages. In 2023, guided
by lean manufacturing principles, the new energy factory aimed to establish an automotive-grade
supply chain system. Through lean product planning, BPD, and 3P improvement tools, the factory
achieved in-house development and manufacturing of DC group charging products, power modules,
European residential energy storage products, and commercial and industrial energy storage
products. Particularly, the design production capacity of charging points made significant leaps,
with production cycles achieving D+1 rapid agile delivery, effectively ensuring the smooth and
rapid development of the business.
4. Brand side
As a significant part of Goneo's strategic positioning in the electricity sector, the new energy
business aligns closely with Goneo's brand image rooted in "safety" within the consumer's mind,
successfully extending this brand gene. The "Goneo Safe Charging Point", founded on excellent
product strength, received high consumer recognition upon launch.
In 2023, to promote the new energy business, the Company actively participated in industry-
leading exhibitions, enhancing Goneo's charging point industry influence through professional
domain advocacy. At the "Second Shanghai International Charging Pile and Battery Swapping
Station Exhibition" ("CPSE Exhibition"), which represents the authoritative and professional brand
selection in China's charging industry, Goneo showcased its integrated DC charging points, AC
charging points, charging plugs, and discharging plugs. Thanks to its focus on safe electricity
technologies, quality assurance from lean production, and impressive sales performance, Goneo
won two industry accolades: "2023 Top Ten Influential Brands in China's Charging Industry" and
"2023 Top Ten Quality Excellence Award in China's Charging Industry". At CES, the largest and
most influential consumer electronics industry event globally, Goneo introduced the new home
charging point flagship model -- Wuji, leading the automotive charging industry into an era of visual
interactive and seamless start charging. Making its debut at the event, Goneo clinched the "2023-
2024 International Innovative Enterprise Brand Award", and the Company's outstanding
performance during the exhibition also garnered extensive attention from international media such
as the Associated Press News and Agence France-Presse. Additionally, the Company actively built
a promotional matrix around online content, short videos, and interest-based e-commerce platforms,
leading the industry in both internal and external search rankings for charging categories, effectively
enhancing the Goneo charging point brand’s influence.
30 / 266
Annual Report 2023
(IV) Internationalisation: Efforts have been made in seizing opportunities arising across
the development cycles of the overseas markets to make the Company's operations more
international.
In 2023, the Company established the International Business Department, set up overseas
subsidiaries in countries and regions such as Germany and Indonesia, accelerated the localisation of
relevant organisations and teams, rapidly integrated internal and external resources, and fully set
sail for the overseas markets. Now all operations are progressing in an orderly manner.
Embracing the new cycle of household electrification development in Southeast Asia and other
regions, the Company seized growth opportunities with a focus on products such as electric
connection and electrical lighting. In 2023, the Company took the lead in upgrading its distributor
system in major Southeast Asian countries. Concurrently, it initiated deeper research and recruited
distributors in emerging markets such as the Middle East and South America, swiftly expanding its
business into target overseas markets. Focusing on long-term development, the Company adhered
to the philosophy of product localisation, planning and developing specialised products tailored to
local market demands and successfully implementing overseas product plans and arrangements. In
terms of market expansion, the Company initiated localised innovation, upgrading the methodology
of "distribution, delivery, visit and sales" for the domestic market to drive the meticulous
development and management of overseas market channels. Meanwhile, the Company established
overseas businesses in regional markets, efficiently driving the implementation of its overseas
business.
Faced with the new cycle of new energy development in Europe and the US, the Company
swiftly shifted its focus to new energy charging and home energy storage sectors. In terms of
products, the Company accurately located market demands, swiftly and independently developed
and made a range of energy storage products, and gradually integrated into the upstream supply
chain. These efforts were aimed at bolstering its cost competitiveness. In terms of channels,
leveraging extensive market exploration experience previously, the Company focused on
establishing installer channels. It conducted pilot recruitment and trial sales in key countries such
as Germany, preliminarily validating its business model. By establishing a distributed service
system featuring local teams and a user-centric approach and rapidly building and promoting a
professional brand image, the Company achieved a differentiated competitive edge in the European
new energy market. In charging plug and point sectors, the Company initiated overseas market
research, completing product planning and supply chain deployment in advance and laying the
groundwork for business promotion.
(V) Corporate operation: Continuously deepening organisational, process and digital
reforms to promote high-quality development
In 2023, the Company actively carried out organisational reforms and established the Process
Optimisation and Digitalisation Centre, dedicated to advancing overall process optimisation,
resource integration, and digital transformation. Through process optimisation, information
31 / 266
Annual Report 2023
technology, and digital and intelligent means, the Company aimed to build core strength for its
future high-quality development.
Actively learning from and catching up with industry leaders, in 2023, the Company
benchmarked itself against excellent practices of digital transformation in the industry. It also
collaborated with Huawei Cloud to jointly draw a blueprint for Goneo Group's digital
transformation. Through a thorough analysis of the current status and strategic objectives for the
future, the Company clarified the planning project outcome of its digital transformation blueprint.
Specifically, regarding the digital strategic vision guided by "1-3-6-X", "1" represents a complete
blueprint; "3" means three goals to be achieved: "Restructuring the decision-making pattern,
optimising user experience, and enhancing operational efficiency;" and "6" refers to six measures:
Product R&D standardisation, agile supply and procurement, integrated warehousing and logistics,
platform-based marketing services, digital talent supply, and intelligent business management.
Additionally, learning from Huawei's methods and practices regarding digital governance, the
Company achieved process reengineering and management transformation, thus supporting the
comprehensive development of its digital transformation and ultimately completing the transition
from a functional organisation to a process-oriented organisation. This planning outcome is
expected to guide the direction and path of the Company's digital transformation over the next three
to five years, facilitating the fulfilment of the Company's vision of "becoming a leader in the
international civil electrical industry".
After recent years of continuous enhancement and construction, the Bull Business System
("BBS") has evolved into an important operational system driving the Company's improvement of
operational quality. In 2023, based on the guiding principle of “accompanying throughout the
business and delivering results”, BBS formed a full value chain empowerment system with a focus
on strategic planning and deployment ("PD"). Through thinking elevation and decomposition for
implementation, business flows were connected, forming a closed loop. This ensured improvements
in BBS would be fully integrated into the entire value chain of production, research, sales, and
functions, empowering each business to achieve continuous success.
In response to the demand for organisational skills and talent supply for future sustainable
development, in 2023, the Company carried out a range of organisational and talent reforms guided
by the principles of elite and efficient organisation and orderly talent filling. This aimed to promote
rapid enhancement of cadres' capabilities and the natural formation of talent pools. Meanwhile,
regarding human resources, the Company focused on the cultivation and development of various
talented professionals, such as cadres, experts, skilled talent, and young talent, laying a solid talent
foundation and providing robust support for the Company's development. Furthermore, according
to changes in the external labour market, the Company further improved its remuneration
management and incentive mechanism, enhancing the competitiveness of employee remuneration.
To support the promotion of international business more effectively, special adjustments were made
to the welfare and incentive policies for employees stationed overseas/overseas employees, fully
32 / 266
Annual Report 2023
stimulating employees' creativity and enthusiasm and promoting the synchronous improvement of
the Company's operating results, individual career development, and compensation and benefits.
II Introduction of the Industry where the Company Operates during the Reporting Period
1. Development stage and periodic characteristics of the industry
According to the Industry Classification of National Economy (GB/T 4754--2017) issued by
the National Bureau of Statistics, the main type of the Company's business is assigned to
“Manufacturing Industry of C38 Electric Machine and Equipment”. Among them, adaptors, wall
switches and sockets, and digital accessories are all assigned to the specific type of “3899 Other Not
Classified Manufacture of Electric Machine and Equipment”. LED lighting is assigned to the
specific type of “3872 Manufacture of Lighting Devices”. And new energy charging plugs/points
fall in the specific type of “3829 Manufacture of Other Power Distribution and Control Facilities”.
With the further improved economic structure as well as the continuous increase of the resident
discretionary income and consumption level in China, industries such as household appliances,
consumer electronics, real estate, home decoration, and new energy vehicles, grow continuously
and rapidly, promoting the market demand for products in electric connection, smart electrical
lighting and new energy charging and storage. Nowadays, China is the main producing base of
adaptors across the world. The brands of wall switches and sockets in China’s market are nationally
leading as well as internationally famous. In the field of lighting, China has become the workshop
of the world with products sold to around 220 countries and regions. In the field of new energy
vehicles, China is the world's largest producer and consumer. In general, traditional electric
connection products such as adaptors and digital accessories, as well as wall switches and sockets,
LED lighting and electrical lighting products, have entered a mature period of development, but the
sub-categories, such as smart ecosystem household products, and new energy products are in a
growing period with increasing policy support.
Products of electric connection, smart electrical lighting and new energy all have close
connection to people’s lives with no obvious characteristics of industry cycle and regions. Among
them, some products of electric connection and smart electrical lighting have been affected by some
factors including cessation of business in major retail terminal end outlets (such as hardware stores,
specialized markets and so on) and the reduction of housing fixtures during the Spring Festival.
Therefore, the first quarter always has the fewer sales volume all over the year.
2. The Company’s position in the industry
The Company concentrates on the civil electric industry and always upholds the business
philosophy of “Be Professional and Concentrated, and Go Further”. Since its establishment in
1995, the Company has gradually formed three main businesses: electric connection, smart
electrical lighting and new energy. Relying on excellent product quality and sound word of mouth,
the reputation of the Goneo brand has increased constantly and its sales volume has always been
leading. During the Reporting Period, the Company ranked 351st among World Brand Lab China’s
33 / 266
Annual Report 2023
500 Most Valuable Brands 2023 with a brand value of RMB24.567 billion. In addition, it was
recognized as a “National Industrial Internet Pilot Demonstration Enterprise” by the Ministry of
Industry and Information Technology of China, and named one of the “Top 100 Manufacturing
Enterprises of Zhejiang Province”, among other honours.
According to the data provided by Info Master, in 2023, the Company’s products such as
adaptors and wall switches and sockets had the No. 1 online sales volume on the e-commerce
platform of Tmall; and its new energy vehicle charging plugs and charging points also led the way
among third-party brands in terms of online sales volume on Tmall.
III Principal Operations of the Company during the Reporting Period
1. Principal operations
During the Reporting Period, the Company focused on the three major businesses of electric
connection, smart electrical lighting and new energy towards its strategic objectives. The primary
products of electric connection are adaptors (power strips), digital accessories, etc. The products of
smart electrical lighting mainly include wall switches and sockets, LED lights (smart no-main-lamp
lighting), safe circuit breakers, smart bathroom heaters, smart door locks, smart clothes drying racks,
smart curtain machines and so on. The products of new energy mainly include new energy vehicle
charging points/plugs, household chargers, industrial and commercial chargers, outdoor portable
chargers, etc.
Electric Connection Smart Electrical Lighting New Energy
The Company adheres to the vision of “Becoming a Leader in the International Civil Electric
Industry”, the mission of “providing safe and comfortable electricity experience for customers” and
the development philosophy of “be professional, concentrated and go further”. Since its
establishment in 1995, the Company has always adhered to the guidance of consumer demand and
the base of product quality. The Company started to from the segmentation of power strips,
constantly promoting the innovation of functions, technology and design, and developing batches
34 / 266
Annual Report 2023
of new products popular among consumers. Focusing on innovation, the Company has the
comprehensive advantages of product R&D, marketing, supply chain and branding. After years of
developing and expanding, the Company has formed three major business segments: electric
connection, smart electrical lighting and new energy. Besides, it has also formed sustainable
business layout in the fields of civil electrical industry and lighting.
2. Business models
(1) Procurement model: The procurement business of the Company mainly includes the
procurement of operating supplies including copper, silver, aluminum, tin, plastic granule, paper
pulp, etc., and the procurement of non-operating supplies such as IT materials, administrative
supplies and so on. The Company has established a procurement strategy with quality as the core.
It has selected the main supplier through the mechanism of strict supplier entrance and regular
examination and inspection. Besides, the Company established strategic cooperating relationships
with the main suppliers to ensure the quality and delivery. The Company has set up a procurement
sharing platform with professional personnel at the group level. It improves the ability of negotiating
prices, lowers procurement costs, and controls the quality of raw materials through centralised
procurement, direct procurement from source suppliers, tendering, etc. Furthermore, the Company
has optimized and improved the suppliers management system, ERP system, manufacturing and
storage system, etc. Meanwhile, it has improved the management of procurement and constantly
improved the procurement efficiency.
The Company has performed centralised procurement of bulk raw materials such as copper,
silver, aluminum, tin, plastic granules, paper pulp and so on. In addition, the Company has locked
the trading price through ways such as forward hedging to reduce the uncertain risk brought by the
price fluctuation in spot market of raw materials.
(2) Production model: The Company has adopted the manufacturing model of “Market
Forecast + Safe Inventory”. Products are mainly self-made. Some new products and supporting
products have been made by adopting the OEM manufacturing mode. Every factory is responsible
for the production of corresponding products and parts. They have ensured product quality, efficient
management and on-time delivery at the same time. Meanwhile, the Company has constantly
promoted the innovation of manufacturing model. By building a balanced production and sales
system, continuously improving lean, automated and digital levels, and insisting on technical
process innovation, the Company has gradually enhanced its "order-driven" flexible production
model while ensuring product quality and reducing inventory slow moving losses.
(3) Sales model: The Company has established online and offline integrated sales model
through omnichannel. The offline sales model is mainly based on distribution and partially based
on direct selling. The Company has promoted the innovative offline sales mode of “distribution,
delivery, visit and sales” in the field of civil electrical appliances and implemented refined
management of channels. Through efficiently organizing and transferring dealer resources around
the country, and long-term accumulation, the Company has established distribution network with
35 / 266
Annual Report 2023
1.1 million retail stores covering national urban and rural areas. The online channel has covered the
mainstream e-commerce platforms through direct selling + distribution, with which we have made
every effort to build the flagship stores into a brand promotion window. The Company has actively
implemented digital marketing to realize “diversion outside the online channel and sales inside the
channel” with the help of each traffic inlet. Meanwhile, in terms of the smart electrical lighting
products, the Company has beefed up development and sales in the B-end channels of decoration
and engineering projects; and as for the new energy-related products, active efforts have been made
to develop B-end operator customers. Additionally, the Company has actively explored emerging
markets such as Southeast Asia and markets of developed countries and regions such as the U.S.
and Europe to speed up the global business layout.
IV Analysis on Core Competitiveness during the Reporting Period
√ Applicable □ Not applicable
The Company has always adhered to the core values of “Honest, Faithful, Professional and
Concentrated”. With forward-looking strategies and the tactics of high-performance operation, it
has built up a sustainable business portfolio and comprehensive competitive edges.
(I) Product strength
(1) The Company has established an edge of innovative product development based on
consumer demand.
For long, the Company has attached great importance to research on consumer demand and the
innovation of product planning and research. It has always viewed the promotion of consumer
experience as the primary goal in product research. The Company has established an integrated
innovation system and teams of forward research, product planning and research. It has created and
applied all kinds of new technologies, materials and crafts. Through the constant superposition of
micro innovation, the Company has promoted a batch of products of electric connection, smart
electrical lighting and new energy with new and different characteristics in the aspects of design,
performance, technology and function, which are popular among consumers. During 2023, the
Company was granted 10 international design awards. By the end of the Reporting Period, it has
cumulatively won 77 domestic and international design awards, including Red Dot (Germany), iF
(Germany), G-Mark (Japan), IDEA, Red Star (China), AWE, DIA (China), etc. In addition, it has a
National Industrial Design Centre recognized by the Ministry of Industry and Information
Technology of China.
Each year, the Company formulates a three-year technical plan in a rolling manner, leveraging
the organisational structure of the Future Research Institute to plan prospective technologies, key
technologies, and product application technologies. It has developed a roadmap for achieving
technical development and leadership goals. Concurrently, the Company has actively integrated
internal and external resources, collaborating with top-notch universities and consulting firms in
areas such as new energy-based electrical products, digital intelligent control, healthy lighting, and
AI industrial applications. In 2023, the Company experienced a further boost in technological
36 / 266
Annual Report 2023
capabilities, achieving 370 newly authorised patents and nine new software copyrights. By the end
of the Reporting Period, the Company had accumulated a total of 2,686 valid patents authorised and
68 software copyrights, had been recognised as a national demonstration enterprise in intellectual
property rights, and had been approved for establishing a national post-doctoral workstation.
In terms of promoting healthy development of the industry, for years, the Company has
participated in drafting 132 national standards, industry standards and association standards. It is
the vice chairman unit of the Electrical Accessories and Household Controller Branch of the China
Electrical Equipment Industry Association. It is also the vice chairman unit of the National
Technical Committee for Standardization of Electrical Accessories. What’s more, it is the first
electrical enterprise in the industry to draft the “Made in Zhejiang” standard and attain certification.
(2) The Company has always adhered to the philosophy of winning through high quality
and put in place an efficient quality control system.
Since its founding, the Company has aimed to manufacture high-quality products. The idea of
winning through high quality has gained support among all in the Company. The Company has
established a good brand image and reputation on the market with reliable product quality.
In the aspects of selecting raw materials, procurement, research and production process control,
product testing and after-sales service, the Company has established a comprehensive and perfect
quality management system of product planning -- product design -- procurement -- production in
batch quantity -- post-sale strictly in line with the national standards, related laws and regulations,
and enterprise standards. To ensure the efficient operation of the quality management system, the
Company has established a domestically leading quality test centre. Covering a building area of
12,189 square metres, the quality test centre is equipped with three nationally accredited laboratories,
which have obtained certifications such as "UL Witness Laboratory," "CNAS Laboratory," "CCC
On-site Laboratory", "WMT-certified Laboratory," "DEKRA Cooperative Laboratory," "HCT
Cooperative Laboratory," and "TV Rheinland Authorised Laboratory" from professional
institutions. By the end of the Reporting Period, the Company was outfitted with cutting-edge
hardware and software research assets valued at over RMB39 million, including more than 1,940
sets of testing equipment. This has offered robust resource support for product quality control.
Meanwhile, boasting an independent materials research institute, the Company has conducted pre-
research and application verification of technologies to bolster material quality, thereby continually
enhancing product reliability, durability, and sophistication. Additionally, leveraging information
technology systems and software platforms such as the Quality Management System ("QMS"),
Manufacturing Execution System ("MES"), System Applications and Products ("SAP"), and
Product Lifecycle Management ("PLM"), the Company has put in place a comprehensive process
monitoring and problem-solving information technology-based process that spans aspects such as
customer quality feedback, new product quality risks, internal manufacturing quality, and supplier
quality. This ensures effective implementation and execution of the Company's quality control
system.
37 / 266
Annual Report 2023
With long-term accumulation, the Company has formed an efficient and systematic quality
management and control system. It has achieved the management system certification of IS09001,
ISO14001, OHSAS18001, and AS9100D. Besides, it has been successively awarded over 20 prizes
related to quality such as “National Qualified Products of Stable Quality”, “Products with Reliable
Quality”, “Demonstration Enterprise of Export Quality and Safety in China”, “Famous Brand
Products in Zhejiang” and “Ningbo Mayor Quality Award”.
(II) Marketing strength
(1) Always being responsive to changes in consumer demand and habits, the Company
has been foresighted in promoting channel reforms.
Supported by the offline marketing network of more than 1.1 million outlets covering urban
and rural areas, as well as a professional online marketing network, the Company has established a
marketing system featuring coordinative online and offline channels in the civil electrical industry.
Over the years, with an innovative offline sales model featuring “distribution, delivery, visit and
sales”, it has developed in China more than 750,000 hardware channel retailers (including hardware
stores, grocery stores, office supplies stores, supermarkets and so on), more than 120,000
specialized decoration and lamp decoration retailers, and more than 250,000 digital accessories
channel retailers. These channels have expanded the selling points to stores, large market places,
professional markets in urban and rural areas, forming an offline marketing network hard to be
duplicated. At the same time, the Company has established a professional e-commerce direct selling
operational team and an online distributor system with strong ability. Nowadays, the Company has
comprehensively entered the leading e-commerce platforms such as Tmall, Taobao, JD.com,
Vipshop, Pinduoduo, and so on. It has dozens of authorized online distributors. On the basis of
maintaining the sales on traditional e-commerce platforms, the Company also worked on hobby and
content-oriented e-commerce channels to strengthen its brand presence while driving sales.
According to the data provided by Info Master, in 2023, the Company’s products of adaptors and
wall switches and sockets continued to maintain the first place in the Tmall online market share and
continued to consolidate the leading position, while its new energy chargers led the way among
third-party brands in terms of sales volume.
The high quality coordinated development between offline and online channels has helped the
Company establish a comprehensive, multilevel and stereoscopic marketing network, which is the
unique channel advantage of the Company to maintain competitiveness. With the changes in
consumption trends and footfall structure, comprehensive flagship stores for the decoration channel
and the new retail model of online and offline integration have been introduced and initially tested,
which have become important directions for the Company’s channel development and innovation
in the future. Simultaneously, the Company has always adhered to the refined management of
channels for years, developing established systems in the aspects of development, management,
operation, and so on. It has had the advantage of developing new channels swiftly. The systematic
38 / 266
Annual Report 2023
channel layout of new energy and Murora products in a short period of time is an effective
manifestation of this underlying capability.
(2) With “Goneo” being widely recognized as a safe and reliable brand, the Company is
now strengthening a trendy, high-end, and high-tech brand image.
Through a branding model with selling point promotion as the foundation, over the past more
than 20 years, the Company has made constant efforts to support the distributors to put the Goneo
brand in retail stores and put advertising resources such as display inside and outside the stores, in
so doing the Goneo brand has been disseminated to cities, towns and counties. It has formed a simple,
efficient and unique branding model. Goneo has become a household name. Meanwhile, the
Company has constantly enriched the brand connotation and improved the brand’s penetration and
loyalty among different consumers with the help of diversified, intelligent and young new products
and the Internet new media promotion. With the brand upgrading strategy, and based on continuous
product innovation, the “Goneo” brand has gradually shifted from “safe and reliable” to “trendy,
high-end and high-tech”. And the Company’s brand presence and reputation have been further
enhanced.
(III) Operational strength
(1) The Company has a highly lean, automated and digitalized supply chain, helping it
stay competitive with respect to quality, efficiency and cost.
With products as the core, the Company deeply integrates the upstream supply chain, masters
the key components and core technology, and establishes a vertically integrated supply chain system
from basic raw materials to finished products. It has regarded manufacturing technology as the
important carrier of core competitiveness in the supply chain. It is equipped with mold, hardware,
electronic, spraying and other supporting factories. These factories design, develop and manufacture
various high precision molds for the Company’s diverse products. With automated injection
molding and molding integration, they have been developing and supplying sufficient precision
electronic components for the Company. Meanwhile, by giving full play to synergies among them,
the product quality, production efficiency and the product innovation competence have been greatly
improved.
The Company has constantly improved the lean, automated and digitalised manufacturing
capabilities and established an industrial automatic team of integrated research, design and
manufacturing. The independent development and design, and the assembly application capability
of automatic devices and smart assembly devices have constantly improved. The flexible production
mode of “man-machine integration” has been promoted rapidly. With the help of a leading
automatic stereoscopic warehouse and smart sorting shipment system, the Company has achieved
the mechanization and automation of warehouse work, which greatly improves the speed of
distribution and delivery, and the customer response ability. The automatic stereoscopic warehouse
has efficiently connected the front-end automatic production. The smart manufacturing system for
the whole process of feedstock -- production -- storage -- shipment has been established. Meanwhile,
39 / 266
Annual Report 2023
by comprehensively upgrading the MES system and integrating ERP, QMS, PLM and other
hardware and software systems, the Company has achieved digitalised whole-process information
monitoring and management of “integrated design and manufacturing, automated production and
processing, transparent production process, and precise logistics control”, providing solid support
for the sustainable development of the Company’s business.
(2) The Bull Business System (BBS) has become a powerful engine to drive the Company's
business development.
As management reforms have been deepened over the past few years, BBS has become a
pivotal methodology and operational system driving the Company's improvement of operational
quality and a robust catalyst for innovation-driven growth, cost reduction, and efficiency
enhancement of the Company. Focusing on the Company's strategic goals, BBS has fully capitalised
on tools and methods to empower the organisation to continuously pursue excellence, consolidate
the foundation of its advantageous business, and secure breakthroughs in new business, thereby
attaining satisfactory operating results.
V Major Operations during the Reporting Period
For the Reporting Period, operating revenue increased 11.46% year on year to RMB15.695
billion and the net profit attributable to the Company’s shareholders amounted to RMB3.870 billion,
up 21.37% from the previous year.
(I) Analysis of Principal Operations
1. Changes in consolidated income statement and cash flow statement items
Unit: RMB
Change
Item 2023 2022
(%)
Operating revenue 15,694,755,606.24 14,081,373,030.94 11.46
Cost of sales 8,914,184,532.27 8,730,082,585.08 2.11
Selling expense 1,070,438,160.60 800,387,659.41 33.74
Administrative expense 626,198,552.51 500,596,373.88 25.09
Not appli
Finance costs -108,510,345.64 -107,993,300.96
cable
R&D expense 673,427,386.61 588,296,080.11 14.47
Net cash generated from/used in
4,827,282,098.55 3,057,914,218.16 57.86
operating activities
Net cash generated from/used in Not appli
-3,434,383,521.90 -1,746,083,657.48
investing activities cable
Net cash generated from/used in Not appli
-1,987,046,180.27 -1,945,455,689.54
financing activities cable
The change in operating revenue was primarily driven by the steady growth in the traditional core
business and the fast growth in new businesses in the year.
The change in cost of sales was primarily driven by the increased costs along with the increased
revenue and the efforts in cost reduction in the year.
The change in selling expense was primarily driven by the increased advertising and marketing
expenses.
The change in administrative expense was primarily driven by the increased salaries and equity
incentive expenditures for the management.
The change in finance costs was primarily driven by the decreased exchange losses.
The change in R&D expense was primarily driven by the increased R&D investments.
40 / 266
Annual Report 2023
The change in net cash generated from/used in operating activities was primarily driven by the
increased sales.
The change in net cash generated from/used in investing activities was primarily driven by the
increased purchases of financial products in the year.
The change in net cash generated from/used in financing activities was primarily driven by the
increased dividend payout.
Particulars about any significant change to the Company’s business nature, profit composition or
sources in the current period.
□ Applicable √ Not applicable
2. Revenue and cost analysis
√ Applicable □ Not applicable
In 2023, the electric connection business continued to drive product upgrades, strengthened
Goneo as a trendy and high-end brand, and achieved solid growth. The smart electrical lighting
business created a trendy and high-end product ecosystem, vigorously promoted the channel reform
featuring "flagship stores + new retail model", and achieved sustained growth across economic
cycles. The new energy business swiftly enriched product offerings, increased competitiveness
across the board, such as technology, supply chain, and channels, and achieved leapfrog
development.
(1) Principal operations by operating division, product category, operating segment and sales
model
Unit: RMB
Principal operations by operating division
YoY
YoY YoY
change
Gross chang change in
in
Operating profit e in gross
Operating revenue Cost of sales operatin
division margi cost of profit
g
n (%) sales margin
revenue
(%) (%)
(%)
Up by
Civil
15,669,231,313.3 8,899,467,288.1 5.23
electrical 43.20 11.50 2.09
2 6 percentag
appliances
e points
Principal operations by product category
YoY
YoY YoY
change
Gross chang change in
in
Product profit e in gross
Operating revenue Cost of sales operatin
category margi cost of profit
g
n (%) sales margin
revenue
(%) (%)
(%)
Up by
Electric
4,366,868,543.3 6.64
connectio 7,387,125,686.25 40.89 4.77 -5.81
5 percentag
n products
e points
Smart Up by
electrical 4,282,575,223.3 3.88
7,902,394,358.10 45.81 15.37 7.67
lighting 8 percentag
products e points
41 / 266
Annual Report 2023
Up by
New
1.82
energy 379,711,268.97 250,023,521.43 34.15 148.64 141.97
percentag
products
e points
Principal operations by operating segment
YoY
YoY YoY
change
Gross chang change in
in
Operating profit e in gross
Operating revenue Cost of sales operatin
segment margi cost of profit
g
n (%) sales margin
revenue
(%) (%)
(%)
Up by
15,494,120,354.4 8,772,144,247.5 4.91
Domestic 43.38 12.35 3.37
4 0 percentag
e points
Up by
15.50
Overseas 175,110,958.88 127,323,040.66 27.29 -33.03 -44.79
percentag
e points
Notes:
1) During the year, the electric connection business recorded operating revenue of RMB7.387
billion, up 4.77% year on year; and a cost of sales of RMB4.367 billion, down 5.81% year on year.
As the core of the Company, the electric connection business continued to drive product upgrades,
strengthened Goneo as a trendy and high-end brand, and achieved solid growth.
2) During the year, the smart electrical lighting business recorded operating revenue of
RMB7.902 billion, up 15.37% year on year; and a cost of sales of RMB4.283 billion, up 7.67% year
on year. The smart electrical lighting business created a trendy and high-end product ecosystem,
vigorously promoted the channel reform featuring "flagship stores + new retail model", and
achieved sustained growth across economic cycles.
3) During the year, the new energy business recorded operating revenue of RMB380 million,
up 148.64% year on year; and a cost of sales of RMB250 million, up 141.97% year on year. The
new energy business swiftly enriched product offerings, increased competitiveness across the board,
such as technology, supply chain, and channels, and achieved leapfrog development.
(2) Output and unit sales analysis
√ Applicable □ Not applicable
YoY YoY YoY
change change change
Primary
Unit Output Unit sales Inventory in in unit in
products
output sales inventory
(%) (%) (%)
Electricity
0,000
connecting 61,929.53 59,134.05 4,704.09 8.70 4.81 22.10
pieces
products
Smart
electrical 0,000
94,593.22 91,353.88 6,162.88 17.71 22.27 1.98
lighting pieces
products
New 0,000 64.34 57.48 5.84 150.82 140.49 17.79
42 / 266
Annual Report 2023
energy pieces
products
Notes:
1) The inventory of electric connection products increased steadily in the current period
compared with last year.
2) The inventory of smart electrical lighting products increased steadily in the current period
compared with last year.
3) The unit sales of new energy products showed a significant increase compared with last year,
mainly due to the strong sales of these products.
(3) Execution of significant purchase or sales contracts
□ Applicable √ Not applicable
(4) Cost analysis
Unit: RMB
By operating division
As As
% of % of
Chang
Operatin total total
Cost e in Not
g 2023 costs 2022 costs
category amoun e
division in in
t (%)
2023 2022
(%) (%)
Direct 7,137,885,744.1 80.0 6,975,115,126.9 79.9
2.33
Civil materials 7 7 9 0
electrical Direct labor
616,271,427.08 6.91 597,581,598.69 6.85 3.13
appliance cost
s Manufacturin 1,145,310,116.9 12.8 1,144,233,978.8 13.1
0.09
g expense 1 5 7 1
Notes:
The manufacturing expense took up a smaller percentage of the total costs in the current period
compared with last year, primarily driven by the efforts in manufacturing cost reduction.
(5) Changes to the consolidation scope due to changed ownership in principal subsidiaries in
the Reporting Period
√ Applicable □ Not applicable
For details, please refer to “IX Changes in Consolidation Scope” in “Part X Financial
Statements”.
(6) Significant changes to the business scope or product or service range in the Reporting
Period
□ Applicable √ Not applicable
(7) Major customers and suppliers
A. Major customers
√ Applicable □ Not applicable
Sales to the top five customers stood at RMB1,290.9499 million, accounting for 8.23% of the total
annual sales. Sales to the related-parties among the top five customers stood at RMB0, accounting
for 0% of the total annual sales.
43 / 266
Annual Report 2023
Indicate whether sales to a single customer accounted for over 50% of the total sales, there was any
new customer in the top five customers, or the Company heavily relied on a few number of
customers in the Reporting Period.
□ Applicable √ Not applicable
B. Major suppliers
√ Applicable □ Not applicable
Purchases from the top five suppliers stood at RMB1,773.6825 million, accounting for 12.20% of
the total annual purchases. Purchases from the related-parties among the top five suppliers stood at
RMB0, accounting for 0% of the total annual purchases.
Indicate whether purchases from a single supplier accounted for over 50% of the total purchases,
there was any new supplier in the top five suppliers, or the Company heavily relied on a few number
of suppliers in the Reporting Period.
□ Applicable √ Not applicable
3. Expense
√ Applicable □ Not applicable
Unit: RMB
Item 2023 2022 Amount of change Change
(%)
Selling
1,070,438,160.60 800,387,659.41 270,050,501.19 33.74
expense
Administr
ative 626,198,552.51 500,596,373.88 125,602,178.63 25.09
expense
R&D
673,427,386.61 588,296,080.11 85,131,306.50 14.47
expense
Finance Not applic
costs -108,510,345.64 -107,993,300.96 -517,044.68
able
(1) Selling expense increased primarily driven by the increased advertising and marketing expenses.
(2) Administrative expense increased primarily driven by the increased employee salaries and equity
incentive expenditures.
(3) R&D expense increased primarily driven by the increased R&D investments.
(4) Finance costs decreased primarily driven by the exchange losses.
4. R&D investments
(1) R&D investments
√ Applicable □ Not applicable
Unit: RMB
Expensed R&D investments in the
673,427,386.61
current period
Capitalized R&D investments in the
/
current period
Total R&D investments 673,427,386.61
Total R&D investments as % of
4.29
operating revenue
Capitalized R&D investments as % of
/
total R&D investments
(2) R&D personnel
√ Applicable □ Not applicable
Number of R&D personnel 1,581
R&D personnel as % of total employees 11.50
44 / 266
Annual Report 2023
Educational background of R&D personnel
Educational background Number of employees
Doctoral degree 2
Master’s degree 87
Bachelor’s degree 818
Junior colleges 518
Senior high school and below 156
Age structure of R&D personnel
Age Number of employees
Below 30 (exclusive) 360
30-40 (inclusive of 30 and exclusive of 40) 894
40-50 (inclusive of 40 and exclusive of 50) 301
50-60(inclusive of 50 and exclusive of 60) 25
60 and beyond 1
(3) Other information
√ Applicable □ Not applicable
The Company, as a national industrial design center and a national postdoctoral workstation,
has always attached importance to product development and technological innovation. By
establishing a leading scientific research innovation platform and innovating mechanism, the
Company focuses on the research of industry basic and key common technologies to continuously
improve product development and technological innovation capability. Meanwhile, with great
emphasis on cultivation and introduction of talents of R&D and product planning as well as adhering
to market demand-oriented principle, the Company continues to strengthen the insight and research
on the potential consumer demands and scenario-based requirements, constantly expands the areas
by launching products that meet consumer demands to lead the industry development. In addition,
the Company continues reinforcing the construction of the standardization system and the strategic
layout of intellectual property rights, and constantly promotes open innovation to set an excellent
example with respect to innovation capability.
(4) Reasons for any significant change to the composition of R&D personnel and the impact
on the Company
□ Applicable √ Not applicable
5. Cash flows
√ Applicable □ Not applicable
Unit: RMB
Item 2023 2022 Amount of change Change
Net cash
generated
from/used in 4,827,282,098.55 3,057,914,218.16 1,769,367,880.39 57.86
operating
activities
Net cash
generated Not
-3,434,383,521.90 -1,746,083,657.48 -1,688,299,864.42
from/used in applicable
investing
45 / 266
Annual Report 2023
activities
Net cash
generated
Not
from/used in -1,987,046,180.27 -1,945,455,689.54 -41,590,490.73
applicable
financing
activities
(1) Net cash generated from operating activities increased primarily driven by the increased sales
and the decreased payments to suppliers.
(2) Net cash generated from investing activities decreased primarily driven by the increased
purchases of financial products in the year.
(3) Net cash generated from financing activities decreased primarily driven by the increased
dividend payout in the year.
(II) Significant changes in profit incurred by non-core business
□ Applicable √ Not applicable
(III) Analysis of assets and liabilities
√ Applicable □ Not applicable
1. Assets and Liabilities
Unit: RMB
As % As %
of of
closing opening Change
Item Closing amount Opening amount Note
total total (%)
assets assets
(%) (%)
Held-for-
trading 9,727,000,000.00 49.22 6,949,000,000.00 41.73 39.98
financial assets
Derivative
8,263,755.00 0.04 643,100.00 0.00 1,184.99
financial assets
Receivables
5,359,014.96 0.03 1,036,801.70 0.01 416.88
financing
Prepayments 56,229,933.95 0.28 49,635,694.61 0.30 13.29
Other
11,433,179.13 0.06 71,887,692.32 0.43 -84.10
receivables
Other current
109,982,385.06 0.56 363,825,426.89 2.18 -69.77
assets
Construction in
806,585,458.56 4.08 611,457,850.54 3.67 31.91
progress
Right-of-use
18,802,451.89 0.10 13,312,707.57 0.08 41.24
assets
Goodwill - 45,133,442.04 0.27 -100.00
Short-term
588,344,176.01 2.98 845,374,749.03 5.08 -30.40
borrowings
Held-for-
trading
- 18,200,000.00 0.11 -100.00
financial
liabilities
Other payables 705,060,906.64 3.57 446,413,870.85 2.68 57.94
Current portion
of non-current 406,959,339.77 2.06 8,798,658.13 0.05 4,525.24
liabilities
Deferred 68,417,470.86 0.35 53,820,328.00 0.32 27.12
46 / 266
Annual Report 2023
income
Other non-
current 86,411,741.16 0.44 34,814,148.70 0.23 125.66
liabilities
Paid-in capital
(or share 891,540,875.00 4.51 601,077,590.00 3.61 48.32
capital)
Other
comprehensive 13,570,498.15 0.07 4,389,526.95 0.03 209.16
income
Surplus
562,217,890.93 2.84 302,797,998.73 1.82 85.67
reserves
Other notes:
Held-for-trading financial assets increased primarily driven by the increased investments in wealth
management instruments in the period.
Derivative financial assets increased primarily driven by the positive floating returns on futures at
the end of the period.
Receivables financing increased primarily driven by the increased balance of bank acceptance notes
receivable.
Prepayments increased primarily driven by the increased advance expense payments.
Other receivables decreased primarily driven by the full-amount allowances established for doubtful
other receivables from Sunac in the period.
Other current assets decreased primarily driven by the decreased structured deposits at the end of
the period.
Construction in progress increased primarily driven by the increased investments in the raised funds
investment projects in the period.
Right-of-use assets increased primarily driven by the increased building space under long-term
leases in the period.
Goodwill decreased primarily driven by the full-amount allowances established for impairments in
goodwill in the period.
Short-term borrowings decreased primarily driven by the decreased loans that were due within one
year in the period.
Held-for-trading financial liabilities decreased primarily driven by the contingent consideration for
business combination that required no payment.
Other payables increased primarily driven by the increased sales discount accruals as a result of the
increased sales.
Current portion of non-current liabilities increased primarily driven by the increased loans with a
maturity of over one year in the period.
Deferred income increased primarily driven by the receipt of asset-related government grants in the
period.
Other non-current liabilities increased primarily driven by the increased over-one-year obligations
to repurchase restricted shares.
Paid-in capital increased primarily driven by the bonus issue from capital reserves in the period.
Other comprehensive income increased primarily driven by the positive floating returns on futures
at the end of the period.
Surplus reserves increased primarily driven by the surplus reserves established in the period.
2. Overseas assets
√ Applicable □ Not applicable
(1) Value of assets
Of which: overseas assets stood at RMB23,091,555.51, accounting for 0.12% of the total assets.
(2) Explanation for the high proportion of overseas assets
□ Applicable √ Not applicable
47 / 266
Annual Report 2023
3. Major restricted assets as at the period-end
√ Applicable □ Not applicable
For details, please refer to “19. Assets with restricted ownership or right to use” under “VII
Notes to the Consolidated Financial Statements” of “Part X Financial Statements”.
4. Other information
□ Applicable √ Not applicable
(IV) Industry environment analysis
√ Applicable □ Not applicable
For details, please refer to “(I) Industry landscape and trends” under “VI Outlook Discussion
and Analysis” of Part III Management Discussion and Analysis”.
48 / 266
Annual Report 2023
(V) Investments made
Equity investments in other entities
□ Applicable √ Not applicable
1. Significant equity investments
□ Applicable √ Not applicable
2. Significant non-equity investments
√ Applicable □ Not applicable
For details, please refer to “(2) Changes in significant constructions in progress in the current period” under “12. Construction in progress” in “VII Notes to the
Consolidated Financial Statements” of “Part X Financial Statements”.
3. Financial assets measured at fair value
√ Applicable □ Not applicable
For details, please refer to “XI Items Measured at Fair Value” in “Part II Corporate Information and Key Financial Information”.
Securities investments:
□ Applicable √ Not applicable
Notes to securities investments:
□ Applicable √ Not applicable
Investments in private equity funds:
□ Applicable √ Not applicable
Derivatives investments:
√ Applicable □ Not applicable
(1) Derivatives investments for hedging purposes in the Reporting Period
√ Applicable □ Not applicable
(2) Derivatives investments for speculation purposes in the Reporting Period
□ Applicable √ Not applicable
49 / 266
Annual Report 2023
Other information:
The Company used commodity future contracts to hedge the expected bulk-purchase of raw materials of copper and plastic particles to avoid the risk of
fluctuations in the future cash flows caused by the fluctuations in the price of raw materials.
The Company's specific hedging methods are described below:
Expected bulk-purchase of raw materials such as copper and plastic
Hedged items
particles
Hedge instruments Commodity future contracts
Commodity future purchase contracts locked in changes of price in
Hedging method
expected raw materials bulk-purchase contract
Both the hedging instruments (commodity futures contracts) and the hedged items (expected bulk-purchase of raw materials) are based on variables such as
copper and plastic prices. The Company, guided by the Group Purchasing Decision Committee and based on actual raw material demand for production, conducts
hedging to safeguard against price fluctuations effectively. The aforementioned hedging is highly effective. Cash flow hedging is adopted for such hedging activities.
Additionally, the Company, in accordance with its risk management strategy, hedges certain raw materials such as silver, aluminium, and tin. However, due to
factors such as quantity conversion, the hedging may not be highly effective after futures closing, resulting in ineffective hedging portions being included in return on
investment.
50 / 266
Annual Report 2023
4. Progress on any major asset restructuring in the Reporting Period
□ Applicable √ Not applicable
(VI) Sale of significant assets and equity investments
□ Applicable √ Not applicable
(VII) Principal subsidiaries
√ Applicable □ Not applicable
1. Principal subsidiaries
Unit: RMB’0,000
Full
Registe
name of Operating
Principal activities red Total assets Net assets Net profit
subsidiar revenue
capital
y
Household appliances
manufacturing; manufacturing of
mechanical and electrical
equipment; manufacturing of
distribution switch control
equipment; lighting apparatus
manufacturing; general
merchandising of hardware
products; electrical materials
manufacturing; manufacturing of
electronic components and
electromechanical components
and equipment; manufacturing of
intelligent home consumption
equipment; communication
equipment manufacturing;
network equipment
Ningbo manufacturing; IoT equipment
Goneo manufacturing; technical services,
10,000 485,716.82 214,498.30 517,082.34 194,883.42
Electrics technical development, technical
Co., Ltd. consulting, technical
communication, technical
transfer, and technical promotion
(business activities shall be
conducted independently in
accordance with laws with the
business license, except the items
that require approval in
accordance with laws). Items
permitted: Import and export of
products; and import and export
of technologies (business
activities that require approval in
accordance with laws shall be
subject to the approval by relevant
authorities. Specific business
items are indicated on the
approval results).
Ningbo Manufacturing, processing and
Goneo sales of mold, plastic products, 10,000 84,996.49 27,964.30 244,566.41 8,056.64
Precisio hardware accessories, and
51 / 266
Annual Report 2023
n electronic components.
Manufac
turing
Co., Ltd.
General merchandising, retailing
and online sales of electrical
materials, electronic products,
hardware products, household
appliances, communication
apparatus, lamps, and articles of
Ningbo
everyday use; import and export
Goneo
businesses of self-owned and
Electric 10,000 204,830.92 30,127.61 1,071,038.37 7,777.24
commissioned goods and
Sales
technologies (excluding those
Co., Ltd.
limited or prohibited by state laws
and regulations). (business
activities that require approval in
accordance with laws shall be
subject to the approval by relevant
authorities)
Wholesale of hardware, sales of
electrical accessories, sales of
household appliances, sales of
communication equipment, sales
of electronic products, sales of
daily necessities, sales of special
equipment for lighting apparatus
production, sales of mechanical
and electrical equipment, sales of
lighting apparatus, sales of
Ningbo general merchandise, sales of
Goneo lamps, sales of wind and power
Marketin tools, sales of metal tools, 1,000 62,601.01 16,578.55 410,894.41 16,298.82
g Co., wholesale of electronic
Ltd. components, sales of plastic
products, sales of motor vehicle
chargers, sales of charging points,
sales of household goods,
installation services for household
appliances (business activities
shall be conducted independently
in accordance with laws with the
business license, except the items
that require approval in
accordance with laws).
Net profits of principal subsidiaries changed because sales increased, and costs decreased and
efficiency improved in sourcing and manufacturing. Meanwhile, certain distribution channels of
Ningbo Goneo Electric Sales Co., Ltd. were transferred to Ningbo Goneo Marketing Co., Ltd.,
leading to significant changes in the net profits of these two subsidiaries in the current period.
2. New subsidiaries
Unit: RMB’0,000
Net profit
Full name of How it was Registered Closing net in the
Principal activities
subsidiary obtained capital assets current
period
52 / 266
Annual Report 2023
Sales of motor vehicle chargers; sales of
charging points; centralised fast charging
station; sales of power transmission and
distribution and monitor and control
equipment; sales of batteries; sales of
power and electronic components; sales
of power utility equipment; sales of
battery spare parts; sales of lamps; sales
of lighting apparatus; sales of household
Ningbo appliances spare parts; sales of household
Qiquanyang appliances; sales of new energy vehicle
Incorporated 1,000.00 0.89 -0.11
Trading Co., power exchange facilities; sales of new
Ltd. energy primary-power equipment; sales
of new energy vehicle electric
accessories; residential plumbing and
electricity installation and maintenance
services; installation services for
household appliances (business activities
shall be conducted independently in
accordance with laws with the business
license, except the items that require
approval in accordance with laws).
Specialising in the R&D, design,
manufacture, sales and technical services
of parts, equipment and components for
GONEO New
photovoltaic, energy storage products
Energy Europe Incorporated EUR2.50 7.27 -12.18
and lithium battery products, as well as
GmbH
the import and export of related products
and technical consulting and business
services.
Wholesale of power distribution switch
equipment, wires, cables, and connectors;
appliances and appliance accessories;
electric light sources and lighting lamps;
pneumatic and metal tools, power tools,
PT Goneo
plastic products, hardware accessories,
Electronic Incorporated USD210.21 / /
and electronic components; household
Indonesia
appliances and communication
equipment; photovoltaic equipment,
energy storage, lithium batteries, electric
vehicle charging stations and chargers
and related products.
Goneo
International
General trading Incorporated USD5 / /
Trading (SG)
Pte. Ltd.
(VIII) Structured entities controlled by the Company
□ Applicable √ Not applicable
VI Discussion and Analysis on the Company’s Future Development
(I) Industry landscape and trends
√ Applicable □ Not applicable
53 / 266
Annual Report 2023
According to the National Bureau of Statistics, the national GDP grew by 5.2% year on year
in 2023; the national per capita disposable income reached RMB39,218 in 2023, up by 6.3% year
on year; the national per capita consumption expenditure for the year was RMB26,796, up by 9.2%
compared to the previous year; the urbanisation rate of the resident population was 66.16% at the
end of the year, up by 0.94 percentage points compared to the end of the previous year. In 2023,
several ministries outlined the direction for optimising real estate policies, with local authorities
continuing to implement such policies. Previous restrictive measures, introduced during periods of
market overheating, are gradually being phased out or refined. Guided by these policies, the
Ministry of Housing and Urban-Rural Development reported that overall housing demand remained
stable, with the proportion of second-hand housing transactions reaching a historic high nationwide.
The Central Economic Work Conference for the new year emphasised the importance of promoting
stability through progress and establishing the new before abolishing the old. It also urged the real
estate sector to address industry risks, advance "three major projects," and accelerate the
establishment of a new development model. We expect that the steady growth of the national
economy, the high-quality development of the real estate industry, and the stable overall housing
demand will provide a good environment for the sustainable and healthy development of the
Company.
The domestic lighting market size is more than RMB200 billion, but the industrial pattern is
scattered. In recent years, under the influence of complex changes in the social and economic
environment and rising bulk raw materials, small and medium-sized lighting enterprises are facing
greater pressure to survive, and the advantages of leading enterprises will be more prominent. With
the popularity of minimalist decoration style, as well as the rising concern of consumers for the
home light environment, light effect and light health, intelligent no-main-lamp lighting with light
quality are gaining more and more popularity and enter gradually into the mass market and become
a trend from the previous commercial lighting and high-end home decoration field. At the same
time, LED lighting technology innovation drives the cost reduction so that LED light has the basic
conditions to become mass consumer goods; on this basis, the Company judges that no-main-lamp
lighting will be expected to grow into an important opportunity category in the lighting field. After
incubation and cultivation, the Company's no-main-lamp lighting business has adopted a dual-
brand-driven strategy and initially built up differentiated core competencies in hardware and
software products, channels, supply chain, etc. In the future, the Company will continue to promote
business synergies, seize the minds of consumers, and achieve ground-breaking development.
The smart home industry has undergone a transformation from single product to system and
interaction after the integration and evolution in recent years. With the increasing maturity of the
supply-side solutions and the gradual increase in consumer acceptance on the demand side, smart
home products are increasingly coming into homes and bringing convenient use experience. AVC
monitoring data suggest that in 2023, China's smart home overall (smart home system, smart switch,
smart door lock) refined decoration market size reaches 1.128 million sets, of which the smart home
54 / 266
Annual Report 2023
system configuration rate saw increases for three years in a row, and the fine decoration
configuration rate increased from 9.6% in 2021 to 20.5% in 2023. The brand pattern of the smart
home industry has not yet been formed, and there is a huge market space behind the rapid
development. As the core of the smart home system, the lighting control system has obvious user
interaction perception and high usage frequency. The Company makes intelligent no-main-lamp
lighting and self-developed control system the entry point, and integrates with smart door locks,
smart curtain machines, smart clothes drying racks and other ecosystem product categories to
provide household solutions of safe electricity use, which will be an important development
direction and a differentiated competitive edge for the smart electrical lighting business.
In 2023, under the dual impacts of policy and market, the new energy vehicle industry
continued to grow rapidly. According to the China Association of Automobile Manufacturers, in
2023, 9.587 million new energy vehicles were produced and 9.495 million were sold in China, up
35.8% and 37.9% year-on-year, and the market share was 31.6%, reaching ahead of schedule the
goal that by 2025, the sales of new energy vehicles will reach about 20% of the total sales of new
vehicles in the New Energy Automobile Development Plan (2021-2035) issued by the General
Office of the State Council. In June 2023, the State Council issued the Guiding Opinions on Further
Establishing a High-Quality Charging Infrastructure System. According to the document, a high-
quality charging infrastructure system featuring wide coverage, an appropriate scale, a reasonable
structure, and well-improved functions is expected to be preliminarily established by 2030 to
support the development of the new energy vehicle industry. Seizing this momentum, the Company
swiftly completed the layout of new energy vehicle charging plugs and points for both individual
consumers and operators, experiencing a business leap. Anticipating the future transformation in
energy structures, the Company has entered the emerging energy storage sector. Leveraging the
strengths of domestic supply chains in this sector, the Company has taken the lead in promoting
household-oriented smart energy systems in Europe, a region with tight energy supplies and ample
future market potential. Domestically, the Company has promoted energy storage systems for
industrial and commercial users. Meanwhile, the Company will accelerate product innovation and
technology reserves, proactively explore new business directions, meet the storage and charging
needs of more user groups in a wider variety of scenarios, and seize the historical opportunities of
the development of the new energy industry.
(II) Development strategies of the Company
√ Applicable □ Not applicable
With the vision of “Becoming a Leader in the International Civil Electrical Industry”, the
Company will grasp the opportunities of the times and accelerate the development of the smart
ecosystem, new energy and international operations. It will build up the four-wheel strategic
capabilities of “Technology Leadership, Customer First, Intelligent Transformation, and Global
Presence”, and continue to build comprehensive competitive edges in product, marketing and
55 / 266
Annual Report 2023
operational strengths, with an aim to provide consumers with more and better electrical products
and services.
(III) Business plans
√ Applicable □ Not applicable
In order to achieve its operating goals in 2024, the Company will work on the following
priorities:
1. In the electric connection business, the Company will continue to drive innovation
around consumer demands and application scenarios, setting the trend towards safe and
stylish electrical products.
Adaptors are the foundation of the Company. The Company will continue to study the market
and consumer trends in depth, carry out product innovation around the demands in segmented
electricity scenarios, and continuously explore directions such as fashion, safety, scenario fit,
intelligent upgrade, and intelligent power distribution. By introducing more high-value and
aesthetically pleasing products, the Company aims to optimise and upgrade its product portfolio. In
terms of digital accessory business, the Company will adhere to the third-party premium offering
strategy, with a focus on the integration of scenarios and functions. It will utilise leading technology
and maximise cost-effectiveness to meet diverse consumer demands for digital charging products.
2. In terms of the smart electrical lighting business, the Company will, based on the
consumer demand for home improvement, accelerate the creation of a pre-decoration
ecosystem with smart no-main-lamp lighting at the core and drive the establishment of
flagship stores in decorative channels and the development of new retail models.
In terms of the wall switch and sockets business, the Company will uphold the decorative line,
grasp the intelligent, ultra-thin and other industry trends, and accelerate upgrading and iteration
towards high-end, intelligent products, so as to lead the industry's overall innovation and further
enhance brand power and competitiveness through products with a strong sense of design and high
value. In terms of LED lighting, the Company, adhering to its "Eye-Caring" positioning, will
develop lighting solutions for segmented scenarios based on the demands of different user bases.
As to the light source business, the Company will continue to expand into industrial and commercial
markets and arrange in depth product lines in segmented areas such as outdoor scenarios, offices,
and chains. Regarding the decorative lighting business, the Company will prioritise innovation in
intelligent, simple yet stylish, and affordable products to continually capture market share. In the
no-main-lamp lighting business, the product line layout will be further refined with a focus on the
brands of Goneo and Murora. Additionally, the Company will bolster both hardware and software
strengths to deliver digital, inductive, and health-conscious home lighting environments. With
respect to ecosystem-based products, the product layout and expansion will be carried out in concept,
appearance, and technology innovation to cater to diverse user demands. The ultimate goal is to
provide users with a richer, smarter, and higher-quality smart ecosystem of pre-decoration.
56 / 266
Annual Report 2023
In 2024, the decoration channel will be fully committed to advancing the development of
comprehensive flagship stores. Furthermore, it will actively leverage the new retail model to
empower retail flagship stores, thereby boosting sales efficiency. Comprehensive development of
the channel service system will be expedited to effectively support the operation of flagship stores,
delivering consumers a more convenient and reassuring purchasing and use experience. Through
the "Goneo Safe Home Electrical Solution", with no-main-lamp lighting, wall switches, and track
sockets at its core, efforts will be intensified to expand the installer project channel, thereby
significantly boosting market share in all aspects.
3. The Company will continuously enhance the competitiveness and channel development
of new energy electrical products.
With respect to new energy vehicle charging plugs and points, the Company will continuously
refine existing product lines, transitioning from "complete" to "refined" offerings. In C-end products,
the Company will drive industry development by prioritising safety, the sense of technology, and
innovation. Regarding B-end products, priority will be given to the development of a competitive
edge in high performance, maximum cost-effectiveness, and new technologies. Meanwhile, the
development of the overseas product portfolio will be expedited. In the energy storage business,
comprehensive arrangements for the home energy storage ecosystem will be made to explore further
development of domestic industrial and commercial energy storage product lines, thereby
facilitating rapid business growth. In terms of the expansion of new energy channels, efforts will be
continued to bolster coverage and penetration of offline professional channels in the domestic
market. Additionally, new retail models will be explored, which involves expanding into large
operator and government-enterprise projects, in addition to the effective coverage of small and
medium operators. The Company will also drive the transformation and upgrading of distributors
towards service providers, thereby further increasing the timeliness and satisfaction of post-sale
services. Specialised channels for industrial and commercial energy storage will be built. Regarding
the new energy supply chain, the Company will continue to drive lean and scale R&D, procurement,
and manufacturing, alongside the self-development and self-manufacturing of core parts. The aim
is to establish a flexible supply chain that ensures low costs and high quality, thereby swiftly
developing a leading technological edge. As to brand building, in 2024, the Company will ramp up
promotional efforts for the Goneo brand in the new energy sector. By organising multi-level media
promotions and publicity activities targeting different user bases, the Company will strive to capture
consumer attention.
4. The Company will adopt the strategy of localisation to advance the rapid growth of
international business.
As to the new energy business targeting developed countries, the Company will leverage its
existing strengths in supply chain and R&D to swiftly develop home energy solutions that cover
photovoltaic power generation, storage and charging. Based on typical countries such as Germany,
the Company will continuously develop installer channels. Through proactive participation in
57 / 266
Annual Report 2023
exhibitions and industry exchanges, as well as advertising and promotions on online social media
platforms, the Company aims to rapidly increase brand visibility, assist with channel customer
acquisition and conversion, and enhance the development foundation. In emerging markets, the
Company will continue its multi-category development approach with a focus on electric connection
and prioritise localisation in products, methods, and business operations to further empower
channels, implement lean market planning, and identify distribution channels in advance. Cross-
border e-commerce will be synchronised with offline overseas business, reaching target countries
and ultimately achieving the collaborative development of "online promotion and attraction and
offline business promotion and conversion". Meanwhile, the Company will seize the rising trend of
e-commerce in Southeast Asia and make active arrangements for emerging e-commerce platforms.
5. The Company will continuously deepen its organisational, process and digital
transformation to enhance its high-quality operational capabilities across the entire chain.
Based on the direction and path outlined in Goneo Group's digital transformation blueprint, the
Company will further deepen and advance the implementation of its digital transformation tasks. In
2024, the Company will advance the establishment of an enterprise-level process management
system in an orderly manner, which will seamlessly integrate processes with corporate strategies
and the organisational structure to bolster process efficiency and reinforce the identification and
control of process-related risks. Across various processes such as R&D, production, and delivery,
an integrated process management system will be established as an ongoing endeavour to explore
the in-depth integration of the Bull Business System into business transformation and process
development. Moreover, the Company will drive the establishment of a data governance system to
bolster its full-chain digital and high-quality operational capabilities.
(IV) Possible risks
√ Applicable □ Not applicable
1. Risk associated with the sluggish macroeconomic growth
Domestic and overseas political and economic environments are undergoing profound changes.
The main products of the Company are consumer goods widely used at home, office, and other
places needing electricity. The cyclical fluctuation of economy will directly influence the actual
discretionary income of consumers, consumers' income structure, and the consumer confidence
index. Then, consumers' demand for consumer goods including electric connection products and
smart electrical lighting products will be affected. If the growth rate of the domestic macroeconomy
is sluggish or slides, it will lead to a decrease in discretionary income and the power of consumption
of residents. It will also decrease consumers' demand and purchasing capacity for the Company's
products. As a result, the business development and the growth of results of the Company.
2. Risk of intensified market competition
The civil electrical industry demonstrates full market competition. There are not only many
domestic enterprises, but also some famous international brands. Meanwhile, adaptors, wall
switches and sockets, and other products, as the main controlled entrance of future smart home, also
58 / 266
Annual Report 2023
have attracted many powerful new enterprises to join in the competition. In the future, the civil
electrical and lighting industry is expected to remain its relatively fierce competition. There are
uncertainties in the changes of market competition. If the Company cannot adapt to the new
competition situation, intensify and expand its original competition advantages, it will face the risk
of losing market shares.
3. Risk of the new business development failing to reach expectation
At the time of intensifying and expanding the original competition advantages, centering on
the scenarios of new energy chargers and home decoration, the Company developed new business
such as charging plugs/points, chargers, no-main-lamp lighting, circuit breakers, bathroom heaters,
smart door locks, smart clothes drying racks, and smart curtain machines. However, considering
uncertain factors including the development trend, market competition, and changes of consumer
preferences in relevant fields, the possibility that the development of new businesses will fail to
reach expectation cannot be excluded.
4. Risk of the new channel and market development failing to reach expectation
According to the differences and changes of consumers' purchasing habits, the Company
continued to improve the layout of channels. Regarding the B-end business with decoration
companies as the core, the overlap of the channels such as the vehicle after-markets for new energy
charging plugs/points and B-end operators and the existing competitive channels is relatively low.
Meanwhile, the Company is in the early stage of business expansion in overseas markets and needs
to gradually build up its competitive edges. The possibility that the development of new channels
and markets will fail to reach expectation cannot be excluded.
5. Risk of fluctuations in main material prices
The main materials that the Company needs for production are copper, plastic, assembly,
hardware, packaging materials, electronic parts, etc. There is certain relevance between the
procurement prices of raw materials and the prices of bulk commodities such as copper and plastic.
The procurement prices of raw materials have a relatively big impact on the cost of sales of the
Company. If the procurement prices of raw materials rise significantly or fluctuate sharply in the
future, it will be harmful to the cost control of the Company and then influence the Company's
results.
(V) Other information
□ Applicable √ Not applicable
VII Explanation of circumstances and reasons for non-disclosure by the company
inconsideration of inapplicable regulations, state secrets and commercial secrets.
□ Applicable √ Not applicable
59 / 266
Annual Report 2023
Part IV Corporate Governance
I Overview of Corporate Governance
√ Applicable □ Not applicable
The Company is in strict accordance with the requirements of the Company Law, the Securities
Law and other relevant national laws and regulations, and the China Securities Regulatory
Commission's Code of Corporate Governance for Listed Companies and other standardised
documents, and is constantly improving its corporate governance structure in light of the Company's
development. The Company has established a governance structure consisting of the General
Meeting of Shareholders, the Board of Directors, the Supervisory Committee, with distinct
responsibilities and powers at each level, each with its own responsibilities, effective checks and
balances, scientific decision-making and coordinated operation, which builds a solid foundation for
the Company's sustained, steady and healthy development.
The Board of Directors has set up four specialised committees, namely, Audit and Risk
Committee, Nomination Committee, Remuneration and Appraisal Committee and Strategy
Committee, of which the independent directors in the Audit and Risk Committee, Nomination
Committee and Remuneration and Appraisal Committee are in the majority and act as the conveners,
providing professional and objective advice to the Board of Directors to ensure the professionalism
and comprehensiveness of the Board of Directors' deliberation and decision-making.
The Company has established a sound corporate governance system, forming a "1+3+N"
governance system composed of "Articles of Association + Rules of Procedure for Three Meetings
+ Various Special Governance Systems". During the year, the Company newly revised the Work
Policy for Independent Directors in accordance with the rules and regulations of China Securities
Regulatory Commission and the Shanghai Stock Exchange, and continuously updated and perfected
it in conjunction with the actual operation, and amended the Rules of Procedure for Three Meetings,
the Information Disclosure Management System, the Internal Reporting System Regarding
Significant Information and a number of other systems, which have fully safeguarded the
standardised operation of the Company's "Three Meetings and One Layer" and key internal control
departments.
Meanwhile, the Company has established a relatively sound internal management and control
system, and has formulated relevant management systems in the areas of technology research and
development, procurement management, safe production, marketing management, quality control
and financial accounting. It conducted internal audit and supervision of the organization and
management, operating activities, financial revenues and expenditures and economic benefits of its
subsidiaries, and regularly inspected and evaluated the establishment and implementation of its
internal control system to ensure the effectiveness of internal control.
The Company is committed to continuously building modern corporate governance and
promoting system establishment to effectively improve the quality of development as a public
company.
60 / 266
Annual Report 2023
Indicate whether there was any material incompliance with the applicable laws and regulations, as
well as the CSRC’s requirements in corporate governance. If yes, please explain.
□ Applicable √ Not applicable
II Specific Measures Taken by the Controlling Shareholder and Actual Controller to
Guarantee the Asset, Personnel, Financial, Organizational and Business Independence of the
Company, as well as Solutions, Progress and Subsequent Plans when the Company’s
Independence Is Intervened
□ Applicable √ Not applicable
Indicate whether the controlling shareholder, the actual controller, or any entity under their control
is engaged in the same or similar business with the Company. Please explain the impact of horizontal
competition or any significant change to horizontal competition on the Company, solutions taken,
progress and subsequent plans.
□ Applicable √ Not applicable
III General Meetings of Shareholders
Index to
Disclosure
Meeting Date disclosed Resolutions
date
resolutions
The Proposal on the Change of
Registered Capital, Domicile and
The First Business Scope and Amendments to
Extraordinary www.sse.com.cn the Articles of Association,
6
General (the website of 7 January Proposal on Amendments to the
January
Meeting of the Shanghai 2023 Rules of Procedure for General
2023
Shareholders Stock Exchange) Meetings of Shareholders, and
of 2023 Proposal on Amendments to the
Management Methods for the Use
of Raised Funds were approved.
The Proposal on the Work Report
of the Board of Directors in 2022,
Proposal on the Work Report of the
Supervisory Committee in 2022,
Proposal on the Financial Final
Account Report of 2022, Proposal
on the Annual Report and its
Summary for 2022, Proposal on the
Plan for Profit Distribution and a
Bonus Issue from Capital Reserves
The 2022 for 2022, Proposal on the Renewal
www.sse.com.cn
Annual of the Annual Auditor for 2023,
18 May (the website of 19 May
General Proposal on the Use of Equity
2023 the Shanghai 2023
Meeting of Funds for Entrusting Wealth
Stock Exchange)
Shareholders Management, Proposal on the
Restricted Share Incentive Plan for
2023 (Draft) and its Summary,
Proposal on the Management
Measures for the Assessment of the
Restricted Share Incentive Plan for
2023, Proposal on the Request to
the General Meeting to Authorize
the Board of Directors to Handle
Share Incentive-Related Matters,
and Proposal on Amendments to the
61 / 266
Annual Report 2023
Articles of Association were
approved.
Extraordinary general meetings of shareholders convened at the request of preference shareholders
with resumed voting rights:
□ Applicable √ Not applicable
Notes to general meetings of shareholders:
√ Applicable □ Not applicable
For details, please refer to the Announcement on the Resolutions of the First Extraordinary
General Meeting of Shareholders of 2023 (Announcement No.: 2023-002), and the Announcement
on the Resolutions of the 2022 Annual General Meeting of Shareholders (Announcement No.: 2023-
032) published by the Company on the website of the Shanghai Stock Exchange
(http://www.sse.com.cn).
62 / 266
Annual Report 2023
IV Directors, Supervisors and Senior Management
(I) Shareholding changes and remunerations of incumbent directors, supervisors and senior management and those who resigned before the end of their
tenures during the Reporting Period
√ Applicable □ Not applicable
Unit: share
Total pre-tax
remuneration
Change in received Remuneration
shareholding from the received from
Start End Opening Closing
in the Reason for Company in any of the
Name Office title Gender Age of of shareholding shareholding
Reporting change the Company’s
tenure tenure (share) (share)
Period Reporting related parties
(share) Period (yes/no)
(RMB’
0,000)
Bonus issue
from capital
Ruan Chairman of the Board and 2017- 2027- reserves,
Male 60 96,864,199 143,693,654 46,829,455 354.42 No
Liping President 12-23 1-4 and non-
transaction
transfer
Bonus issue
from capital
reserves,
shareholding
Ruan 2017- 2027- reduction
Vice Chairman of the Board Male 52 96,864,199 125,901,758 29,037,559 248.00 No
Xueping 12-23 1-4 through bulk
trading, and
non-
transaction
transfer
Director, Senior Vice 2017- 2027- Bonus issue
Liu President and Board Secretary 12-23 1-4 from capital
Male 54 42,400 152,048 109,648 326.93 No
Shengsong reserves,
Chief Financial Officer 2024- 2027-
and non-
63 / 266
Annual Report 2023
1-5 1-4 transaction
transfer
Bonus issue
from capital
Zhou Director and Senior Vice 2017- 2027- reserves,
Male 52 42,600 196,993 154,393 370.72 No
Zhenghua President 12-23 1-4 and non-
transaction
transfer
Bonus issue
from capital
Xie 2024- 2027- reserves,
Director Male 44 48,100 110,853 62,753 313.61 No
Weiwei 1-5 1-4 and grant of
restricted
shares
Zhou 2021- 2027-
Director Female 40 0 0 0 0 Yes
Wenchuan 5-20 1-4
2024- 2027-
Chen Zhen Independent Director Female 66 0 0 0 0 Yes
1-5 1-4
2024- 2027-
Li Gang Independent Director Male 60 0 0 0 0 Yes
1-5 1-4
2024- 2027-
Li Jianbin Independent Director Male 45 0 0 0 0 No
1-5 1-4
Bonus issue
from capital
Chairman of the Supervisory 2024- 2027- reserves,
Yu Yingqi Male 47 5,100 19,920 14,820 178.00 No
Committee 1-5 1-4 and grant of
restricted
shares
Bonus issue
from capital
Wei 2024- 2027- reserves,
Supervisor Male 47 8,400 28,200 19,800 104.26 No
Lingpeng 1-5 1-4 and grant of
restricted
shares
He Min Employee Supervisor Male 41 2024- 2027- 5,100 9,132 4,032 Bonus issue 85.84 No
64 / 266
Annual Report 2023
1-5 1-4 from capital
reserves,
and grant of
restricted
shares
Bonus issue
from capital
Li 2017- 2027- reserves,
Senior Vice President Male 57 44,200 244,008 199,808 273.84 No
Guoqiang 12-23 1-4 and non-
transaction
transfer
Bonus issue
from capital
Cai Director and Senior Vice 2017- 2024- reserves,
Male 61 43,800 288,066 244,266 240.45 No
Yingfeng President (former) 12-23 1-5 and non-
transaction
transfer
2017- 2024-
Xie Tao Independent Director (former) Male 61 0 0 0 20.00 No
12-23 1-5
Zhang 2017- 2024-
Independent Director (former) Male 51 0 0 0 20.00 No
Zeping 12-23 1-5
2017- 2024-
He Hao Independent Director (former) Female 48 0 0 0 20.00 No
12-23 1-5
Non-
Shen Chairman of the Supervisory 2017- 2024-
Male 60 0 178,593 178,593 transaction 272.94 No
Huiyuan Committee (former) 12-23 1-5
transfer
Non-
Guan 2017- 2024-
Supervisor (former) Male 46 0 89,297 89,297 transaction 231.46 No
Xuejun 12-23 1-5
transfer
Non-
2017- 2024-
Li Yu Employee Supervisor (former) Male 41 0 44,648 44,648 transaction 150.90 No
12-23 1-5
transfer
Senior Vice President and Bonus issue
Zhang 2017- 2024-
Chief Financial Officer Female 64 21,600 121,264 99,664 from capital 185.82 No
Lina 12-23 1-5
(former) reserves,
65 / 266
Annual Report 2023
and non-
transaction
transfer
Total / / / / / 193,989,698 271,078,434 77,088,736 / 3,397.19 /
Note 1: For particulars about the changes in non-transaction transfers, see Reminder on Dissolution of Shareholder and Changes in Interests of the Controlling
Shareholders and the Parties Acting in Concert (announcement No. 2023-046) and Announcement on Completion of Non-transaction Transfers of Shareholders
(announcement No. 2023-064).
Note 2: Director Zhou Wenchuan, Independent Directors Chen Zhen and Li Gang received remuneration from corporations directly or indirectly controlled by them,
or where they acted as directors (excluding independent directors of both parties) or executives. Therefore, "yes" is selected for them for "Remuneration received from
any of the Company’s related parties (yes/no)" in the above table.
Name Main work experience
Born in 1964, Bachelor's degree, Chinese nationality, with permanent residence in Singapore and a Hong Kong Identity Card. He once served as
an engineer at Hangzhou Mechanical Design Institute of the Ministry of Water Resources, and Chairman of the Board and President of Goneo
Ruan Liping
Group Co., Ltd. (the former private company). He is currently the Chairman of the Board and President of Goneo Group. Also, he is the General
Manager of Goneo Photoelectric, and the Executive Director of Liangji Industrial, among others.
Born in 1972, junior secondary education, Chinese nationality, with permanent residence in Singapore and a Hong Kong Identity Card. He once
Ruan served as the Production Manager of Cixi Goneo, Vice Chairman of the Board of Goneo Group Co., Ltd. (the former private company). He is
Xueping currently the Vice Chairman of the Board of Goneo Group. Also, he is the Executive Director of Cixi Goneo, and the Supervisor of Liangji
Industrial.
Born in 1970, Bachelor's degree, engineer, Chinese nationality, no permanent residence abroad. He once served as the Director's Assistant of the
Science and Technology Department of Kmk Group, Senior Manager of Midea Group Co., Ltd., Director of strategic operations and Deputy
Liu
General Manager of the Business Division of AUX Group Co., Ltd., President's Assistant and General Manager of the Business Division of Jiangxi
Shengsong
Zhengbang Technology Co., Ltd., and Vice President of Goneo Group Co., Ltd. He is currently a director, Senior Vice President, Board Secretary,
and Chief Financial Officer of Goneo Group, with the professional qualification of Board Secretary of the Shanghai Stock Exchange.
Born in 1972, Master's degree, Chinese nationality, no permanent residence abroad. He once served as a technician of incoming material quality
Zhou control (IQC) at Zhongshan Kawa Electronic(Group)Co., Ltd., the Managing Officer of quality control (QC) at One Earth Group Limited, General
Zhenghua Manager of the product company of Midea Group Co., Ltd., and Vice President of Goneo Group Co., Ltd. (the former private company). He is
currently a director and Senior Vice President of Goneo Group, as well as General Manager of the Wall Switch Division of Goneo Group.
Born in 1979, Master's degree, Chinese nationality and no permanent residence abroad. He previously served as Operations Manager at Hi-P
Shanghai Home Appliance Co., Ltd., Global Operations Manager at Dell (China) R&D Center, Supply Chain Development Manager at Motorola
Xie Weiwei
(China) Co., Ltd., Operations Director at Flex Precision Manufacturing Co., Ltd., Vice President of Goneo Group, and General Manager of
Converter Business Unit. Currently he serves as Director, Vice President, and General Manager of New Energy Division at Goneo Group Co., Ltd.
Zhou Born in 1983, Master's degree, Ph.D. in progress, permanent resident of Hong Kong. She is currently the President of Meilleure Health International
Wenchuan Group, Chairman of the Board of Shenzhen Xiaozhou Investment Co., Ltd., a member of the Standing Executive Committee of Shenzhen Federation
66 / 266
Annual Report 2023
of Industry & Commerce (Chamber of Commerce), and a director of Goneo Group.
Born in 1957, Master's degree, Chinese nationality, and no permanent residence abroad. She previously served as Director of Legal Affairs Office
of Zhejiang Provincial Electric Power Bureau and is currently the Founder and Director of Zhejiang Sunshine Era Law Firm, Vice Chairman of
Legal Branch of China Electricity Enterprise Association, Vice Chairman of China Energy Law Research Association, Deputy Director of
Chen Zhen
Renewable Energy Committee of China Energy Research Association, Executive Deputy Chairman of Zhejiang Energy Industry Association,
Director of Carbon Neutral Industry Promotion Center of Zhejiang Renewable Energy Association, Independent Director of Hangzhou Redian,
and Independent Director of Goneo Group Co., Ltd.
Born in 1963, Master's degree, Chinese nationality and no permanent residence abroad. He previously served as Sales Manager of ABB Robotics
Business in China, Head of Automotive Industry Business, Head of Robot System Business, President of Robot Business Unit in China, President
Li Gang of Robot and Motion Control Business Unit in China, Senior Vice President of ABB (China) Co., Ltd., Member of the 13th Shanghai Municipal
CPPCC. And he currently serves as Vice President of Shanghai Robotics Association, Co-founder and President of Aubo (Beijing) Robotics
Technology Co., Ltd., and Independent Director of Goneo Group Co., Ltd.
Born in 1979, graduated from Peking University with dual bachelor's degrees in law and economics, Chinese nationality, no permanent residence
abroad, and holds qualifications as a "Chinese Certified Public Accountant", "Chinese Certified Tax Agent", and "National Legal Professional
Qualification (Chinese Certified Lawyer)". He previously served as Partner at Pricewaterhouse Coopers, Vice President of Finance Department at
Li Jianbin
Xiaomi Group, Managing Partner of Strategic Investment Department at Xiaomi Group. Currently he serves as Independent Director of Hong
Kong-listed companies Chaoju Eye Care Holdings Limited (2219.HK) and Beijing 4Paradigm Intelligent Technology Co., Ltd. (6682.HK), and
Independent Director of Goneo Group Co., Ltd.
Born in December 1976, Bachelor's degree, Chinese nationality, no permanent residence abroad. He previously served as a civil servant in Cixi,
Zhejiang Province, Director and Vice President of Bowei Group Co., Ltd., Director of Ningbo Bode High-tech Co., Ltd. Currently he serves as
Yu Yingqi
Vice Chairman of the Third Enterprise Anti-fraud Alliance, Vice President, Chairman of the Supervisory Committee, and Head of Audit and
Inspection Center of Goneo Group Co., Ltd.
Born in October 1976, Master's degree, Company Lawyer, Senior Registered Risk Manager, Chinese nationality, and no permanent residence
Wei
abroad. He previously served as Manager of Legal Affairs Department and Legal Director at Goneo Group Co., Ltd. Currently he serves as
Lingpeng
Supervisor and Director of Legal Affairs Department at Goneo Group Co., Ltd.
Born in September 1982, Bachelor's degree, Chinese nationality, and no permanent residence abroad. Since May 2019, he has been working at the
He Min Human Resources Center of Goneo Group. Currently he serves as Employee Supervisor and Director of Human Resources Center at Goneo Group
Co., Ltd.
Born in 1967, junior college’s degree, Chinese nationality, no permanent residence abroad. He used to be a regional manager for TCL International
Li Guoqiang Electrical (Huizhou) Co., Ltd., the Marketing Director of Aidiwei International Electrical (Huizhou) Co., Ltd., and the Marketing Vice President
of Goneo Group. He is now a Senior Vice President of Goneo Group.
Other information:
□ Applicable √ Not applicable
67 / 266
Annual Report 2023
68 / 266
Annual Report 2023
(II) Offices held by incumbent directors, supervisors and senior management and those who
resigned before the end of their tenures during the Reporting Period
1. Offices held concurrently in shareholding entities
√ Applicable □ Not applicable
Office held in the
Name Shareholding entity shareholding Start of tenure End of tenure
entity
Ningbo Liangji Executive November Currently
Ruan Liping
Industrial Co., Ltd. Director 2011 ongoing
Ningbo Liangji November Currently
Ruan Xueping Supervisor
Industrial Co., Ltd. 2011 ongoing
Note Not applicable
2. Offices held concurrently in other entities
√ Applicable □ Not applicable
Office held
End of
Name Other entity in other Start of tenure
tenure
entity
Ruan Wuhan Zhongjia Hongyi Technology Currently
Director January 2019
Liping Information Industrial Park Co., Ltd. ongoing
Ruan Ningbo Goneo Precision Manufacturing General September Currently
Liping Co., Ltd. Manager 2015 ongoing
Ruan Ningbo Meishan Bonded Port Shuojin Executive November Currently
Liping Investment Management Co., Ltd. Director 2017 ongoing
Ruan General Currently
Cixi Goneo Electrics Co., Ltd. January 2008
Liping Manager ongoing
Ruan Executive December Currently
Wuhan Fenjin Power Tech Co., Ltd.
Liping Director 2006 ongoing
Chairman
Ruan Dalitek Intelligent Technology (Shanghai) Currently
of the October 2021
Liping Inc. ongoing
Board
Ruan Ningbo Goneo Photoelectric Technology General Currently
June 2014
Liping Co., Ltd. Manager ongoing
Ruan Qingdao Haili Commercial Appliances Currently
Director May 2009
Liping Co., Ltd. ongoing
Vice
Ruan Chairman Currently
Shanghai Minshen Property Co., Ltd. July 1999
Liping of the ongoing
Board
Ruan Shenzhen Goneo Intelligent Information General Currently
July 2022
Liping Co., Ltd. Manager ongoing
Ruan Ningbo Meishan Bonded Port Shuojin November Currently
Supervisor
Xueping Investment Management Co., Ltd. 2017 ongoing
Ruan Executive Currently
Cixi Goneo Electrics Co., Ltd. January 1995
Xueping Director ongoing
Ruan Dalitek Intelligent Technology (Shanghai) September Currently
Supervisor
Xueping Inc. 2021 ongoing
Ruan Currently
Shanghai Minshen Property Co., Ltd. Director July 1999
Xueping ongoing
Vice
Ruan Chairman Currently
Shanghai Dumin Real Estate Co., Ltd. August 2022
Xueping of the ongoing
Board
Ruan Shanghai Minshen Real Estate Currently
Director August 2005
Xueping Management Co., Ltd. ongoing
Liu Wuhan Goneo Investment Management Supervisor October 2021 Currently
69 / 266
Annual Report 2023
Shengsong Co., Ltd. ongoing
Liu Shanghai Goneo Information Technology Executive Currently
March 2024
Shengsong Co., Ltd. Director ongoing
Liu Currently
Wuhan Goneo Venture Capital Co., Ltd. Supervisor January 2021
Shengsong ongoing
Liu Dalitek Intelligent Technology (Shanghai) September Currently
Director
Shengsong Inc. 2021 ongoing
Executive
Zhou Director Currently
Ningbo Goneo Electrics Co., Ltd. February 2023
Zhenghua and General ongoing
Manager
Executive
Zhou Ningbo Goneo Intelligent Technology Director Currently
February 2023
Zhenghua Co., Ltd. and General ongoing
Manager
Executive
Xie September Currently
Ningbo Qiquanyang Trading Co., Ltd. Director,
Weiwei 2023 ongoing
Manager
Executive
Xie Ningbo Goneo New Energy Technology Director Currently
April 2022
Weiwei Co., Ltd. and General ongoing
Manager
Zhou Currently
U-Home Group Co., Ltd. Supervisor June 2010
Wenchuan ongoing
Zhou Wuhu Meilleure Health Management Co., General Currently
April 2018
Wenchuan Ltd. Manager ongoing
Zhou General Currently
Shenzhen Xiaozhou Investment Co., Ltd. January 2009
Wenchuan Manager ongoing
Zhou Shenzhen Yinguan Biological Currently
Director February 2019
Wenchuan Technology Co., Ltd. ongoing
Zhou Zhuhai Fuhai Canyang Investment December Currently
Director
Wenchuan Development Co., Ltd. 2009 ongoing
Zhou Shenzhen Meilleure Health Technology Executive Currently
February 2024
Wenchuan Company Limited Director ongoing
Zhou Shenzhen Taiwa Smart Charging Currently
Director March 2024
Wenchuan Technology Co., Ltd. ongoing
Executive
Zhou Director September Currently
Shenzhen Ruima Technology Co., Ltd.
Wenchuan and General 2019 ongoing
Manager
Chairman
Zhou Shenzhen Meiray Vap Technology Co., December Currently
of the
Wenchuan Ltd. 2019 ongoing
Board
Chairman
Zhou Shenzhen Skin Analysis Medical Beauty Currently
of the June 2017
Wenchuan Clinic ongoing
Board
Vice
Chairman
Zhou Meilleure Health International Group Co., Currently
of the August 2013
Wenchuan Ltd. ongoing
Board and
President
Executive
Zhou Wuhu Ruimei Kunhe Industrial Director September Currently
Wenchuan Investment Co., Ltd. and General 2023 ongoing
Manager
Zhou Kunshan Ruimei Kunrun Industrial Executive November Currently
70 / 266
Annual Report 2023
Wenchuan Investment Co., Ltd. Director 2023 ongoing
Executive
Zhou Wuhu Ruimei Kuncheng Industrial Director September Currently
Wenchuan Investment Co., Ltd. and General 2023 ongoing
Manager
Executive
Zhou Wuhu Ruimei Kunrun Industrial Director September Currently
Wenchuan Investment Co., Ltd. and General 2023 ongoing
Manager
Zhou Currently
Beijing Meiaikang Technology Co., Ltd. Director February 2020
Wenchuan ongoing
Zhou General Currently
Wuhu Xiaozhou Investment Co., Ltd. October 2019
Wenchuan Manager ongoing
Founder, Currently
Chen Zhen Zhejiang Sunshine Era Law Firm February 1995
Director ongoing
Independent Currently
Chen Zhen Hangzhou Redian Group Co., Ltd June 2018
Director ongoing
Co-founder
Aubo (Beijing) Robotics Technology Co., Currently
Li Gang and January 2015
Ltd. ongoing
President
Independent Currently
Li Gang Shanghai Xintonglian Packaging Co., Ltd. May 2022
Director ongoing
Independent Currently
Li Jianbin Chaoju Eye Care Holdings Limited July 2021
Director ongoing
Beijing 4Paradigm Intelligent Technology Independent Currently
Li Jianbin July 2021
Co., Ltd. Director ongoing
Executive
Ningbo Goneo Supply Chain Director, Currently
Yu Yingqi January 2023
Management Co., Ltd. General ongoing
Manager
Executive
Li Ningbo Goneo International Trading Co., Director Currently
January 2023
Guoqiang Ltd. and General ongoing
Manager
Executive
Cai
Hainan Dacheng Supply Chain Director Currently
Yingfeng January 2021
Management Co., Ltd. and General ongoing
(former)
Manager
Xie Tao Shanghai Vico Precision Mold &Plastics Currently
Director May 2021
(former) Co., Ltd. ongoing
Xie Tao Independent September Currently
China Yuchai International Limited
(former) Director 2020 ongoing
Xie Tao Independent Currently
Zhejiang Wanfeng Auto Wheel Co., Ltd. June 2020
(former) Director ongoing
Zhang
Independent December Currently
Zeping Shanghai Allied Industrial Co., Ltd.
Director 2022 ongoing
(former)
Zhang
Currently
Zeping Suzhou Kelinyuan Electronics Co., Ltd. Director January 2022
ongoing
(former)
Zhang
CTS International Logistics Corporation Independent Currently
Zeping January 2023
Limited Director ongoing
(former)
Zhang
Independent September
Zeping Shenzhen Soocas Technology Co., Ltd. October 2020
Director 2023
(former)
71 / 266
Annual Report 2023
He Hao Currently
Hang Fun International Group Limited CEO March 2023
(former) ongoing
He Hao Shanghai Hang Fun Yunchao Intelligent Executive Currently
August 2023
(former) Technology Co., Ltd. Director ongoing
He Hao Shanghai Xingduo Investment Partnership Executive Currently
July 2018
(former) Enterprise (Limited Partnership) Partner ongoing
He Hao Shanghai Heyue Intelligent Technology Executive Currently
June 2022
(former) Co., Ltd. Director ongoing
Executive
He Hao Beijing Xinghao Kairui Technology Co., Director December Currently
(former) Ltd. and 2018 ongoing
Manager
Shen
Hainan Dacheng Supply Chain Currently
Huiyuan Supervisor January 2021
Management Co., Ltd. ongoing
(former)
Executive
Guan
Director December Currently
Xuejun Ningbo Goneo Electric Sales Co., Ltd.
and General 2022 ongoing
(former)
Manager
Li Yu Ningbo Goneo Supply Chain December Currently
Supervisor
(former) Management Co., Ltd. 2017 ongoing
Li Yu Ningbo Goneo Precision Manufacturing November Currently
Supervisor
(former) Co., Ltd. 2019 ongoing
Li Yu December Currently
Ningbo Goneo Electrics Co., Ltd. Supervisor
(former) 2017 ongoing
Li Yu December Currently
Cixi Goneo Electrics Co., Ltd. Supervisor
(former) 2017 ongoing
Executive
Li Yu Ningbo Goneo Low Voltage Electric Co., Director December Currently
(former) Ltd. and 2022 ongoing
Manager
Li Yu Ningbo Banmen Electric Appliance Co., Currently
Supervisor October 2021
(former) Ltd. ongoing
Li Yu Ningbo Goneo IntelligentTechnology Co., December Currently
Supervisor
(former) Ltd. 2017 ongoing
Li Yu Ningbo Goneo Domestic Electrical Currently
Supervisor April 2020
(former) Appliance Co., Ltd. ongoing
Li Yu Ningbo Goneo International Trading Co., December Currently
Supervisor
(former) Ltd. 2017 ongoing
Li Yu Ningbo Goneo Digital Technology Co., December Currently
Supervisor
(former) Ltd. 2017 ongoing
Li Yu Ningbo Goneo Photoelectric Technology December Currently
Supervisor
(former) Co., Ltd. 2017 ongoing
Li Yu December Currently
Shanghai Goneo Electrics Co., Ltd. Supervisor
(former) 2017 ongoing
Zhang
Dalitek Intelligent Technology (Shanghai) September Currently
Lina Supervisor
Inc. 2021 ongoing
(former)
Note Not applicable
(III) Remunerations of directors, supervisors and senior management
√ Applicable □ Not applicable
Decision-making procedures The remuneration of directors and supervisors shall be
for the remuneration of deliberated and determined by the General Meeting of
directors, supervisors and Shareholders. The remuneration of senior management
senior management personnel shall be reviewed and determined by the Board of
72 / 266
Annual Report 2023
personnel Directors.
Whether a director recused
himself/herself from the
Not applicable (personal remunerations not discussed)
Board’s discussion of his/her
remuneration matters
Details of recommendations
issued by the Remuneration
The Remuneration and Appraisal Committee has approved the
and Appraisal Committee or
proposal on the matters relating to the remunerations of
independent directors at any
directors and senior management and unanimously agreed to
special meeting on matters
submit the proposal to the Board of Directors and a general
relating to the remunerations
meeting of shareholders for review.
of directors, supervisors and
senior management
Internal directors, supervisors and senior management personnel
are paid remuneration in accordance with the specific
Basis for determining the management positions they hold in the Company, taking into
remuneration of directors, account the Company's business picture, relevant remuneration
supervisors and senior system and results of performance appraisals. The remuneration
management personnel of independent directors is based on an allowance system, and
directors who do not hold specific management positions in the
Company will not receive remuneration.
Actual payment of
The earnings disclosed in the report represent the actual
remuneration for directors,
remuneration of the directors, supervisors and senior
supervisors and senior
management personnel.
management personnel
Total actual remuneration
received by all directors,
supervisors and senior
RMB33.9719 million
management personnel at
the end of the Reporting
Period
(IV) Changes of directors, supervisors and senior management
√ Applicable □ Not applicable
Name Office title Type of change Reason for change
Director and Senior Vice Re-election of the
Cai Yingfeng Resignation
President Board of Directors
Re-election of the
Xie Tao Independent Director Resignation
Board of Directors
Re-election of the
Zhang Zeping Independent Director Resignation
Board of Directors
Re-election of the
He Hao Independent Director Resignation
Board of Directors
Re-election of the
Chairman of the
Shen Huiyuan Resignation Supervisory
Supervisory Committee
Committee
Re-election of the
Guan Xuejun Supervisor Resignation Supervisory
Committee
Re-election of the
Li Yu Employee Supervisor Resignation Supervisory
Committee
Senior Vice President and Resignation upon
Zhang Lina Resignation
Chief Financial Officer expiry of tenure
Re-election of the
Xie Weiwei Director Elected
Board of Directors
73 / 266
Annual Report 2023
Re-election of the
Chen Zhen Independent Director Elected
Board of Directors
Re-election of the
Li Gang Independent Director Elected
Board of Directors
Re-election of the
Li Jianbin Independent Director Elected
Board of Directors
Re-election of the
Chairman of the
Yu Yingqi Elected Supervisory
Supervisory Committee
Committee
Re-election of the
Wei Lingpeng Supervisor Elected Supervisory
Committee
Re-election of the
He Min Employee Supervisor Elected Supervisory
Committee
Appointed by the
Liu Shengsong Chief Financial Officer Appointed
Board of Directors
Note: The Company’s directors, supervisors and senior management remained the same during
the Reporting Period.
1. On 3 January 2024, He Min was elected as the Employee Supervisor of the Third
Supervisory Committee at the Seventh Meeting of the Second Workers’ Congress. For further
information, see Announcement on the Election Results for Employee Supervisor of the Third
Supervisory Committee (announcement No. 2024-001).
2. On 5 January 2024, Ruan Liping, Ruan Xueping, Zhou Wenchuan, Liu Shengsong, Zhou
Zhenghua and Xie Weiwei were elected as non-independent directors of the Third Board of
Directors, Chen Zhen, Li Gang and Li Jianbin were elected as independent directors of the Third
Board of Directors, and Yu Yingqi and Wei Lingpeng were elected as non-employee supervisors of
the Third Supervisory Committee, at the First Extraordinary General Meeting of Shareholders of
2024. For further information, see Announcement on the Resolutions of the First Extraordinary
General Meeting of Shareholders of 2024 (announcement No. 2024-002).
3. On 5 January 2024, Liu Shengsong was appointed as Board Secretary and Chief Financial
Officer at the First Meeting of the Third Board of Directors. For further information, see
Announcement on the Resolutions of the First Meeting of the Third Board of Directors
(announcement No. 2024-003).
(V) Punishments imposed by securities regulators in the past three years
□ Applicable √ Not applicable
(VI) Other information
□ Applicable √ Not applicable
V Board Meetings Convened during the Reporting Period
Meeting Date Resolutions
The Proposal on the Work Report of the President (General
Manager) in 2022, Proposal on the Work Report of the Board of
Directors in 2022, Proposal on the Financial Final Account
Report of 2022, Proposal on the Annual Report and its
th
The 17 Summary for 2022, Proposal on the First Quarterly Report
Meeting of the 27 April 2023, Proposal on the Plan for Profit Distribution and Bonus
Second Board 2023 Issue from Capital Reserves for 2022, Proposal on the 2022
of Directors Annual Internal Control Evaluation Report, Proposal on the
2022 Environmental, Social and Governance Report, Proposal
on the Work Report of Independent Directors for 2022,
Proposal on the Report on the Performance of the Audit and
Risk Committee of the Board of Directors for 2022, Proposal on
74 / 266
Annual Report 2023
the Estimated Routine Related-party Transactions of the
Company in 2023, Proposal on the Renewal of the Annual
Auditor for 2023, Proposal on the Use of Equity Funds for
Entrusting Wealth Management, Proposal on Conducting
Foreign Exchange Derivative Trading, Proposal on the Special
Report on the Deposit and Actual Use of Raised Funds for
2022, Proposal on the Restricted Share Incentive Plan in 2023
(Draft) and Its Summary, Proposal on the Management
Measures for the Assessment of the Restricted Share Incentive
Plan for 2023, Proposal on the Request to the General Meeting
to Authorise the Board of Directors to Handle Share Incentive-
Related Matters, Proposal on the Repurchase and Retirement of
Certain Restricted Shares, Proposal on Amendments to the
Articles of Association, and Proposal on Holding 2022 Annual
General Meeting of Shareholders were approved.
The Proposal on the Adjustment of the Repurchase Price and
Number of the 2020 Restricted Share Incentive Plan, Proposal
on the Adjustment of the Repurchase Price and Number of the
2021 Restricted Share Incentive Plan, Proposal on the
Adjustment of the Repurchase Price and Number of the 2022
Restricted Share Incentive Plan, Proposal on Adjusting the
The 18th Number of Grants and the Grant Price of the 2023 Restricted
Meeting of the 9 June Share Incentive Plan, Proposal on Granting Restrictive Shares
Second Board 2023 to Awardees, Proposal on the Achievement of Lifting the
of Directors Restriction Conditions in the Third Lifting Period of the 2020
Restricted Share Incentive Plan, Proposal on the Achievement
of Lifting the Restriction Conditions in the Second Lifting
Restriction Period of the 2021 Restricted Share Incentive Plan,
and Proposal on the Achievement of Lifting the Restriction
Conditions in the First Lifting Restriction Period of the 2022
Restricted Share Incentive Plan were approved.
The Proposal on the 2023 Interim Report and the Summary,
The 19th Proposal on the Special Report on the Deposit and Actual Use
17
Meeting of the of Raised Funds for H1 2023, Proposal on Amendments to the
August
Second Board Articles of Association, and Proposal on Amendments to the
2023
of Directors Employee Home Purchase Loan Management Rules were
approved by the resolution.
The 20th
26 The Proposal on the Third Quarterly Report 2023, and Proposal
Meeting of the
October on the Repurchase and Retirement of Certain Restricted Shares
Second Board
2023 were approved.
of Directors
The Proposal on the Re-election of the Board of Directors & the
Nomination of Non-independent Director Candidates for the
Third Board of Directors, Proposal on the Re-election of the
Board of Directors & the Nomination of Independent Director
Candidates for the Third Board of Directors, Proposal on the
Remuneration Plan for the Directors of the Third Board of
The 21st Directors and Senior Management, Proposal on Amendments to
20
Meeting of the the Articles of Association, Proposal on Amendments to the
December
Second Board Rules of Procedure for General Meetings of Shareholders;
2023
of Directors Proposal on Amendments to the Rules of Procedure for the
Board of Directors, Proposal on Amendments to the Work
Rules for Independent Directors, Proposal on Amendments to
the Management Methods for the Use of Raised Funds,
Proposal on Amendments to Certain Corporate Governance
Rules, Proposal on the Use of Equity Funds for Entrusting
Wealth Management, Proposal on the Extension of Some
75 / 266
Annual Report 2023
Investment Projects with Raised Funds, Proposal on the
Conclusion of Some Investment Projects with Raised Funds and
the Use of the Surplus Raised Funds for Permanent
Replenishment of Working Capital, and Proposal on Holding
the First Extraordinary General Meeting of Shareholders of
2023 were approved.
VI Performance of Duty by Directors
(I) Attendance of directors at board meetings and general meetings of shareholders during the
Reporting Period
Attendan
ce at
general
Attendance at board meetings meetings
of
sharehol
ders
Indepe Total
Total The
Name ndent number
numbe director
of directo Board of
r of failed to
director r or Board Board meeti general
board attend
not meeti meetings ngs meetings
meetin two
ngs attended by attend Absen of
gs the consecut
attend way of ed ce sharehol
directo ive
ed on telecommunic throug ders the
r was board
site ation ha director
suppos meeting
proxy was
ed to s
supposed
attend (yes/no)
to attend
Ruan
No 5 5 1 0 0 No 2
Liping
Ruan
Xuepin No 5 5 2 0 0 No 2
g
Liu
Shengso No 5 5 1 0 0 No 2
ng
Zhou
Zhengh No 5 5 1 0 0 No 2
ua
Xie
No 0 0 0 0 0 No 0
Weiwei
Zhou
Wenchu No 5 5 2 0 0 No 2
an
Chen
Yes 0 0 0 0 0 No 0
Zhen
Li Gang Yes 0 0 0 0 0 No 0
Li
Yes 0 0 0 0 0 No 0
Jianbin
Cai
Yingfen
No 5 5 3 0 0 No 2
g
(former)
Xie Tao
Yes 5 5 2 0 0 No 2
(former)
76 / 266
Annual Report 2023
Zhang
Zeping Yes 5 5 3 0 0 No 2
(former)
He Hao
Yes 5 5 2 0 0 No 2
(former)
Explain why any director failed to attend two consecutive board meetings.
□ Applicable √ Not applicable
Total number of board meetings convened in
5
the Reporting Period
Of which: on-site meetings 2
Meetings convened by way of
1
telecommunication
Meetings where on-site attendance and
attendance by telecommunication were both 2
allowed
(II) Objections raised by directors on matters of the Company
□ Applicable √ Not applicable
(III) Other information
□ Applicable √ Not applicable
VII Specialized Committees under the Board of Directors
√ Applicable □ Not applicable
(I) Members of the specialized committees
Specialized committee Members
Audit and Risk Committee Li Jianbin (convener), Chen Zhen, and Ruan Xueping
Nomination Committee Li Gang (convener), Li Jianbin, and Ruan Liping
Remuneration and
Chen Zhen (convener), Li Gang, and Ruan Liping
Appraisal Committee
Ruan Liping (convener), Chen Zhen, Li Gang, Li Jianbin, and Liu
Strategy Committee
Shengsong
Note: On 5 January 2024, the Proposal on the Election of Members for the Specialized Committees
of the Board of Directors was approved at the First Meeting of the Third Board of Directors. As the
Board of Directors was re-elected, members of the specialized committees were also adjusted. For
further information, see Announcement on the Resolutions of the First Meeting of the Third Board
of Directors (announcement No. 2024-003).
(II) The Audit and Risk Committee held three meetings during the Reporting Period.
Important comments Other performance of
Date Contents
and suggestions duties
The Proposal on the 2022 The Audit and Risk
Annual Report and the Committee carried out
Summary, Proposal on the its work in strict For details, please refer
First Quarterly Report 2023, accordance with laws, to the Report of Goneo
Proposal on the Financial regulations and Group Co., Ltd. On the
19 April
Final Account Report of relevant rules and Duty Performance of
2023
2022, Proposal on the policies with the Audit and Risk
Estimated Continuing diligence. It put Committee of the Board
Related-party Transactions forward relevant of Directors in 2023.
in 2023, Proposal on the opinions based on the
Renewal of the Annual reality of the
77 / 266
Annual Report 2023
Auditor for 2023, Proposal Company. Upon full
on the Special Report on the communication and
Deposit and Actual Use of discussion, all
Raised Funds for 2022, proposals were
Proposal on the 2022 Annual unanimously
Internal Control Evaluation approved.
Report, and Proposal on the
Work Report of the Audit
and Risk Management Joint
Office for 2022 were
approved.
The Audit and Risk
Committee carried out
its work in strict
accordance with laws,
The Proposal on the 2023
regulations and
Interim Report and the
relevant rules and For details, please refer
Summary, Proposal on the
policies with to the Report of Goneo
Special Report on the
diligence. It put Group Co., Ltd. On the
4 August Deposit and Actual Use of
forward relevant Duty Performance of
2023 Raised Funds for H1 2023,
opinions based on the the Audit and Risk
and Work Summary Report
reality of the Committee of the Board
of the Audit and Risk
Company. Upon full of Directors in 2023.
Control Centre for H1 2023
communication and
were approved.
discussion, all
proposals were
unanimously
approved.
The Audit and Risk
Committee carried out
its work in strict
accordance with laws,
regulations and
relevant rules and For details, please refer
policies with to the Report of Goneo
The Proposal on the Third diligence. It put Group Co., Ltd. On the
20 October
Quarterly Report 2023 was forward relevant Duty Performance of
2023
approved. opinions based on the the Audit and Risk
reality of the Committee of the Board
Company. Upon full of Directors in 2023.
communication and
discussion, all
proposals were
unanimously
approved.
(III) The Remuneration and Appraisal Committee held three meetings during the Reporting
Period.
Important comments Other performance of
Date Contents
and suggestions duties
The Proposal on the 2023 The Remuneration and
Restricted Share Incentive Appraisal Committee
Plan (Draft) and the carried out its work in
27 April
Summary, and Proposal on strict accordance with
2023
the Management Measures laws, regulations and
for the Appraisal of the 2023 relevant rules and
Restricted Share Incentive policies with
78 / 266
Annual Report 2023
Plan were approved. diligence. It put
forward relevant
opinions based on the
reality of the
Company. Upon full
communication and
discussion, all
proposals were
unanimously
approved.
The Proposal on the
Achievement of Lifting the The Remuneration and
Restriction Conditions in the Appraisal Committee
Third Lifting Restriction carried out its work in
Period of the 2020 strict accordance with
Restricted Share Incentive laws, regulations and
Plan, Proposal on the relevant rules and
Achievement of Lifting the policies with
Restriction Conditions in the diligence. It put
9 June
Second Lifting Restriction forward relevant
2023
Period of the 2021 opinions based on the
Restricted Share Incentive reality of the
Plan, and Proposal on the Company. Upon full
Achievement of Lifting the communication and
Restriction Conditions in the discussion, all
First Lifting Restriction proposals were
Period of the 2022 unanimously
Restricted Share Incentive approved.
Plan were approved.
The Remuneration and
Appraisal Committee
carried out its work in
strict accordance with
laws, regulations and
relevant rules and
The Proposal on the policies with
19 Remuneration Plan for the diligence. It put
December Directors of the Third Board forward relevant
2023 of Directors and Senior opinions based on the
Management was approved. reality of the
Company. Upon full
communication and
discussion, all
proposals were
unanimously
approved.
(IV) The Nomination Committee held one meeting during the Reporting Period.
Important comments Other performance of
Date Contents
and suggestions duties
The Proposal on the The Nomination
Nomination of Non- Committee carried out
19 independent Director its work in strict
December Candidates for the Third accordance with laws,
2023 Board of Directors, and regulations and
Proposal on the Nomination relevant rules and
of Independent Director policies with diligence.
79 / 266
Annual Report 2023
Candidates for the Third It put forward relevant
Board of Directors were opinions based on the
approved. reality of the
Company. Upon full
communication and
discussion, all
proposals were
unanimously
approved.
(V) Objections
□ Applicable √ Not applicable
VIII Risks Detected by the Supervisory Committee
□ Applicable √ Not applicable
The Supervisory Committee raised no objections during the Reporting Period.
IX Employees of the Company as the Parent and Its Principal Subsidiaries at the Period-end
(I) Employees
Number of in-service employees of the
4,108
Company as the parent
Number of in-service employees of principal
9,638
subsidiaries
Total number of in-service employees 13,746
Number of retirees to whom the Company as
the parent or its principal subsidiaries need to 0
pay retirement pensions
Functions
Function Employees
Production 8,772
Sales 1,298
Technical 1,954
Financial 169
Administrative 1,553
Total 13,746
Educational background
Educational background Employees
Bachelor’s degree and above 2,402
Junior college 2,252
Technical secondary school and below 9,092
Total 13,746
(II) Remuneration policy
√ Applicable □ Not applicable
The Company further improved its remuneration management and incentive mechanism
system and enhanced the competitiveness of employee remunerations by revising the management
system related to remuneration and benefits and reviewing remuneration guide lines for all levels
and categories of employees on a regular basis, with changes in the labor market taken into account.
Following the start of the Company's expansion into overseas markets, special adjustments were
made to the welfare and incentive policies for overseas personnel to support the Company's
expansion overseas. The Company conducted comprehensive and objective appraisals of employees
80 / 266
Annual Report 2023
from dimensions such as company operating performance, job value, personal performance and
personal ability. And it continued to improve the performance-oriented system of assessment,
training, promotion and incentive, fully mobilizing the creativity and enthusiasm of employees and
promoting the Company's performance growth and personal career development while improving
the remuneration and benefits.
(III)Training plans
√ Applicable □ Not applicable
The Company actively focuses on talent cultivation and development, focusing on the
cultivation and construction of its cadre team, expert team, skilled worker team, and young talent
team, cultivating outstanding talents to continuously provide high-quality talents for business
development. In talent cultivation, the Company adheres to the learning philosophy of "combination
of training and practice, with a focus on practice and supplemented by training". For cadre team
training, based on the Goneo Talent Standard, the Company implemented multiple middle-level
cadre leadership training camps in 2023. For the expert team, diverse professional knowledge
training resources are provided based on "BBS capabilities" and "professional job competency
models". At the same time, training camps for team leaders and captains, as well as training
programmes for grassroots technical positions, are carried out in an orderly manner. For young
talents, the Company recruited more than 300 outstanding college students nationwide and
implemented the Goneo Plan training camp in accordance with the requirements of young talents,
comprehensively cultivating excellent young people in line with the Company's cultural values and
competency requirements. A culture of talent cultivation and development is built in all aspects and
fields.
(IV) Labor outsourcing
□ Applicable √ Not applicable
X Dividend Payouts
(I) Formulation, execution and adjustments of the cash dividend policy
√ Applicable □ Not applicable
1. The cash dividend policy
The Articles of Association clarifies the decision-making procedures and mechanism for profit
distribution, the principles of profit distribution, the conditions and proportion of cash dividends,
etc., ensuring the transparency and operability of cash dividends to effectively safeguard the
legitimate rights and interests of small and medium shareholders and investors. The Company's
profit distribution plan is strictly implemented in accordance with the provisions of the Articles of
Association and the resolutions of the Company's General Meeting of Shareholders.
The Company will implement sustaining and stable profit distribution methods in line with the
provisions of the Articles of Association. The Company may distribute dividends by means of cash,
stocks, a combination of cash and stocks, or other means permitted by laws and regulations.
81 / 266
Annual Report 2023
Among the profit distribution methods, the Company gives priority to cash dividends over
stock dividends; if the Company adopts stock dividends for profit distribution, it shall have taken
into account factors such as its growth and stock liquidity.
Description of dividends in the Articles of Association: The Board of Directors of the Company
shall comprehensively consider factors such as the Company's industry characteristics, development
phase, business model, profitability, and whether there are arrangements for major capital
expenditures, distinguish the following circumstances, and propose differentiated cash dividend
policies according to the procedures set forth in the Articles of Association:
(1) If the Company is in the phase of mature development and there is no arrangement for
major capital expenditures, cash dividends shall account for at least 80% in the profit distribution;
(2) If the Company is in the phase of mature development and there are arrangements for major
capital expenditures, cash dividends shall account for at least 40% in the profit distribution;
(3) If the Company is in the growth period and there are arrangements for major capital
expenditures, cash dividends shall account for at least 20% in the profit distribution; where it is
difficult to distinguish the Company's development phase but there are arrangements for major
capital expenditures, it may be handled in accordance with the provisions of the preceding paragraph.
2. Cash dividend payouts during the Reporting Period
As approved at the 2022 Annual General Meeting of Shareholders on 18 May 2023, the 2022
final dividend payout was carried out. Based on the total share capital of 601,077,590 shares minus
the 46 shares in the repurchased share account at the record date of the dividend payout (i.e. 7 June
2023), the Company paid out a cash dividend of RMB33 (tax inclusive) per 10 share to its
shareholders, with a bonus issue of 4.8 additional shares for every 10 shares held by shareholders
from capital reserves. The total amount of the cash dividend payout was RMB1,983,555,895.20 (tax
inclusive), accounting for 62.21% of the net profit attributable to the Company’s ordinary
shareholders during 2022. The dividend payout was completed on 8 June 2023.
According to the applicable regulations, the cash amount of RMB215,219,556.49 that was used
to repurchase shares during 2022 was included in the cash dividend amount. Therefore, the total
amount of the cash dividend payout was RMB2,198,775,451.69 (tax inclusive), accounting for
68.96% of the net profit attributable to the Company’s ordinary shareholders during 2022.
(II) Special statement on the cash dividend policy
√ Applicable □ Not applicable
In compliance with the Company’s Articles of Association or the relevant
√ Yes □ No
resolutions of general meeting of shareholders
Specific and clear dividend standards and ratios √ Yes □ No
Complete decision-making procedure and mechanism √ Yes □ No
Independent directors have faithfully performed their duties and played
√ Yes □ No
their due role
Non-controlling shareholders are able to fully express their opinion and
√ Yes □ No
demand and their legal rights and interests are fully protected
82 / 266
Annual Report 2023
(III) Where the Company fails to put forward a cash dividend proposal despite the facts that
the Company has made profits in the Reporting Period and the profits of the Company as the
parent distributable to shareholders are positive, it shall give a detailed explanation of why, as
well as of the purpose and use plan for the retained earnings.
□ Applicable √ Not applicable
(IV) Final dividend plan for the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Bonus issue from profit (share/10 shares) /
Cash dividend/10 shares (tax inclusive) 31
Bonus issue from capital reserves (share/10
4.5
shares)
Cash dividends (tax inclusive) 2,763,776,569.90
Consolidated net profit attributable to the
ordinary shareholders of the listed company in 3,870,135,376.47
the year
Cash dividends as % of consolidated net profit
attributable to the ordinary shareholders of the 71.41
listed company
Cash dividends in form of share repurchase in
0
cash
Total dividend amount (tax inclusive) 2,763,776,569.90
Total dividend amount as % of consolidated
net profit attributable to the ordinary 71.41
shareholders of the listed company
XI Status and Impact of Share Incentive Plans, Employee Shareholding Plan or Other
Incentive Measures for Employees
(I)Relevant incentive matters disclosed in current announcement with no subsequent progress
or change
√ Applicable □ Not applicable
Overview Index to the disclosed information
To further establish and improve its long-term
incentive mechanisms, attract and retain For details, please refer to the following
outstanding talent, fully mobilise the announcements disclosed on the website of
Company's core team, effectively align the the Shanghai Stock Exchange
interests of shareholders, the Company and its (www.sse.com.cn):
core team, and promote all stakeholders’ The 2023 Restricted Share Incentive Plan
common focus on the Company's long-term (Draft) of Goneo Group;
development , the Company formulated the The Announcement on Adjusting the Number
2023 Restricted Share Incentive Plan (Draft) of Grants and the Grant Price of the 2023
of Goneo Group and its summary, completed Restricted Share Incentive Plan
the registration of the grant of the 2023 (Announcement No.: 2023-039); and
Restricted Share Incentive Plan on 29 June The Announcement on the Grant Results of
2023, and granted a total of 2,189,848 the 2023 Restricted Share Incentive Plan
restricted shares to 750 people at a price of (Announcement No.: 2023-049)
RMB48.95/share.
According to the provisions of the 2020
For details, please refer to the following
Restricted Share Incentive Plan of Goneo
announcements disclosed on the website of
Group Co., Ltd., the 2021 Restricted Share
the Shanghai Stock Exchange
Incentive Plan of Goneo Group Co., Ltd., and
(www.sse.com.cn):
the 2022 Restricted Share Incentive Plan of
83 / 266
Annual Report 2023
Goneo Group Co., Ltd., some awardees have The Announcement on the Repurchase and
lost the incentive qualification of the Cancellation of Some Restricted Shares
Incentive Plan due to their departure from the (Announcement No.: 2023-024);
Company, and the Company completed the The Announcement on Notifying Creditors of
repurchase and cancellation of 47,170 the Repurchase and Cancellation of Some
restricted shares held by them which had been Restricted Shares (Announcement No.: 2023-
granted but not lifted from restricted sales on 025);
4 September 2023. The Announcement on Adjusting the
Repurchase Price and Number for the 2020
Restricted Share Incentive Plan
(Announcement No.: 2023-036);
The Announcement on Adjusting the
Repurchase Price and Number for the 2021
Restricted Share Incentive Plan
(Announcement No.: 2023-037);
The Announcement on Adjusting the
Repurchase Price and Number for the 2022
Restricted Share Incentive Plan
(Announcement No.: 2023-038); and
The Announcement on the Implementation of
the Repurchase and Cancellation of Some
Restricted Incentive Shares (Announcement
No.: 2023-063)
For details, please refer to the following
announcements disclosed on the website of
the Shanghai Stock Exchange
According to the relevant provisions of the
(www.sse.com.cn):
2020 Restricted Share Incentive Plan, the
The Announcement on Satisfaction of the
lifting of the restriction conditions in the third
Conditions for Lifting Restriction in the Third
lifting restriction period of the 2020
Lifting Restriction Period of the 2020
Restricted Share Incentive Plan has been
Restricted Share Incentive Plan
achieved, and a total of 217,599 shares held
(Announcement No.: 2023-041); and
by 441 awardees have met the conditions for
The Announcement on Lifting the Restriction
lifting the sale restrictions, which were
Conditions in the Third Lifting Restriction
unlocked and listed on 6 July 2023.
Period of the 2020 Restricted Share Incentive
Plan and Trading in the Market
(Announcement No.: 2023-050)
For details, please refer to the following
announcements disclosed on the website of
the Shanghai Stock Exchange
According to the relevant provisions of the
(www.sse.com.cn):
2021 Restricted Share Incentive Plan, the
The Announcement on Satisfaction of the
lifting of the restriction conditions in the
Conditions for Lifting Restriction in the
second lifting restriction period of the 2021
Second Lifting Restriction Period of the 2021
Restricted Share Incentive Plan has been
Restricted Share Incentive Plan
achieved, and a total of 258,766 shares held
(Announcement No.: 2023-042); and
by 455 awardees have met the conditions for
The Announcement on Lifting the Restriction
lifting the sale restrictions, which were
Conditions in the Second Lifting Restriction
unlocked and listed on 17 July 2023.
Period of the 2021 Restricted Share Incentive
Plan and Trading in the Market
(Announcement No.: 2023-054)
According to the relevant provisions of the For details, please refer to the following
2022 Restricted Share Incentive Plan, the announcements disclosed on the website of
lifting of the restriction conditions in the first the Shanghai Stock Exchange
lifting restriction period of the 2022 (www.sse.com.cn):
Restricted Share Incentive Plan has been The Announcement on Satisfaction of the
achieved, and a total of 811,283 shares held Conditions for Lifting Restriction in the First
84 / 266
Annual Report 2023
by 610 awardees have met the conditions for Lifting Restriction Period of the 2022
lifting the sale restrictions, which were Restricted Share Incentive Plan
unlocked and listed on 21 June 2023. (Announcement No.: 2023-043); and
The Announcement on Lifting the Restriction
Conditions in the First Lifting Restriction
Period of the 2022 Restricted Share Incentive
Plan and Trading in the Market
(Announcement No.: 2023-045)
For details, please refer to the following
According to the provisions of the 2020
announcements disclosed on the website of
Restricted Share Incentive Plan of Goneo
the Shanghai Stock Exchange
Group Co., Ltd., the 2021 Restricted Share
(www.sse.com.cn):
Incentive Plan of Goneo Group Co., Ltd., the
The Announcement on the Repurchase and
2022 Restricted Share Incentive Plan of
Cancellation of Some Restricted Shares
Goneo Group Co., Ltd., and the 2023
(Announcement No.: 2023-072);
Restricted Share Incentive Plan of Goneo
The Announcement on Notifying Creditors of
Group Co., Ltd., some awardees have lost the
the Repurchase and Cancellation of Some
incentive qualification of the Incentive Plan
Restricted Shares (Announcement No.: 2023-
due to their departure from the Company, and
073); and
the Company completed the repurchase and
The Announcement on the Implementation of
cancellation of 173,974 restricted shares held
the Repurchase and Cancellation of Some
by them which had been granted but not lifted
Restricted Incentive Shares (Announcement
from restricted sales on 22 December 2023.
No.: 2023-076)
(II) Incentive Plans undisclosed in current announcements or disclosed but with new progress
Equity Incentive Plans:
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
Employee stock ownership plans:
□ Applicable √ Not applicable
Other incentive measures:
□ Applicable √ Not applicable
(III) Equity incentives granted to directors and senior management during the Reporting
Period
□ Applicable √ Not applicable
(IV) Establishment and formulation of appraisal and incentive mechanisms for senior
management during the Reporting Period
√ Applicable □ Not applicable
The remuneration of the senior management personnel of the Company is implemented based
on the actual operations and the relevant rules of the Company.
XII Development and implementation of internal control systems during the Reporting Period
√ Applicable □ Not applicable
During the Reporting Period, in strict compliance with the Company Law, Securities Law,
Code of Corporate Governance for Listed Companies, Guidelines for Evaluation of Enterprise
Internal Control and other relevant laws and regulations, the Company continuously established and
improved its internal control system and enhanced the level of internal control management. The
85 / 266
Annual Report 2023
risk and internal control management organization system, comprising the Audit and Risk
Committee and the Internal Audit Department, supervises and evaluates the internal control
management of the Company. Through comprehensive risk identification and management, and
sound operation and checking of the internal control system, the Company has effectively prevented
various risks in its operation, promoted the realisation of internal control objectives, and further
strengthened compliance in operation.
Explanation of material weaknesses in internal control during the Reporting Period:
□ Applicable √ Not applicable
XIII Management and control over subsidiaries during the Reporting Period
√ Applicable □ Not applicable
During the Reporting Period, the Company strictly followed the requirements of the Shanghai
Stock Exchange and various rules and regulations of the Board of Directors of the Company to
regulate the management and risk control of subsidiaries. Subsidiaries reported significant
information such as operations to the Company, and there were no undisclosed matters that should
have been disclosed.
XIV Independent auditor’s report on internal control
√ Applicable □ Not applicable
Upon its audit on the effectiveness of the Company’s internal control over financial reporting
for 2023, Pan-China Certified Public Accountants LLP is of the opinion that the Company
maintained, in all material respects, effective internal control over financial reporting as of 31
December 2023, based on the Basic Rules on Enterprise Internal Control and other applicable
regulations. For further information, see the Independent Auditor’s Report on Internal Control for
2023, which has been disclosed together with this Report on the website of the Shanghai Stock
Exchange (www.sse.com.cn).
Whether the Independent Auditor’s Report on Internal Control is disclosed: Yes
Type of the independent auditor’s opinion: Unmodified unqualified opinion
XV Remediation of problems identified by self-inspection in the special action on the
governance of the Company
Not applicable
XVI Other information
□ Applicable √ Not applicable
86 / 266
Annual Report 2023
Part V Environmental and Social Responsibility
I Environmental information
Whether any environment protecting
Yes
mechanism has been established
Spending on environmental protection during
599.34
the Reporting Period (unit: RMB’0,000)
(I) Description of the environmental protection of the company and its major subsidiaries that
are key emission units as declared by the environmental protection authorities
√ Applicable □ Not applicable
1. Discharge information
√ Applicable □ Not applicable
During the Reporting Period, due to the adjustment of the Company's production projects,
Ningbo Goneo is no longer a key emission unit of Ningbo. The relevant project and the identity of
key emission unit has been taken over by Goneo Group Co., Ltd. as a legal entity. Except for this
legal entity, none of the other units within the Group is a key emission unit as declared by the
environmental protection authorities.
During the Reporting Period, the Company discharged in strict accordance with the
requirements of the implemented pollutant discharge standards, with no environmental pollution
incidents and no penalties imposed by the environmental protection authorities. The Group-wide
commissioned disposal volume was 747 tons of hazardous waste in 2023. The Company's hazardous
waste disposal is in compliance with relevant regulations and administrative plans. The
concentration and rate of emission of each pollutant meet the concentration limits and rate
requirements of the emission standards.
2. Construction and operation of pollution control facilities
√ Applicable □ Not applicable
In 2023, the Company invested a total of RMB5.9934 million in operating expenses for
environmental protection equipment, mainly used for the addition of new environmental protection
equipment and technological transformation of environmental protection equipment.
To reduce the generation of volatile organic compounds in the painting workshop, the
Company improved the spray process raw materials, using low-volatility water-based paint instead
of oil-based paint to solve the problem of volatile organic compound generation at the source,
resulting in emission concentrations far below the emission limit requirements. The Company also
extended the use period of consumables in the dry filter section, reducing the generation of filtering
waste and lowering energy consumption during the operation of the treatment facilities.
In the Company's "zeolite rotary adsorption + RTO combustion" waste gas treatment facility,
the adsorption pressure difference in the rotary adsorption section reached the adsorption limit
during the Reporting Period, increasing the consumption of natural gas for RTO. To meet emission
standards and reduce energy consumption requirements, the Company replaced the rotary
87 / 266
Annual Report 2023
adsorption section, resulting in a significant decrease in emission concentration compared to before
and minimising natural gas consumption.
During the Reporting Period, the Company added an activated carbon catalytic combustion
waste gas treatment facility, aimed at the collection and treatment of granulation waste emissions.
The use of catalytic combustion systems can extend the service life of activated carbon and reduce
pollutant emission concentrations, resulting in emission concentrations far below the limit
requirements.
3. Assessment of the environmental impact of construction projects and other administrative
licenses of environmental protection
√ Applicable □ Not applicable
All the Company's construction projects have fulfilled the environmental impact evaluation
and other environmental protection administrative licensing procedures in accordance with the
requirements of national environmental protection laws and regulations.
4. Contingency plan for environmental emergencies
√ Applicable □ Not applicable
The Company has established an effective emergency response mechanism for environmental
emergencies, and the chemical intermediate warehouse of each base and each plant involving
hazardous waste and hazardous chemicals rehearse the contingency plan at least twice a year. In
order to improve the corporate ability to respond to environmental pollution accidents, the Company
has formulated the Contingency Plan of Goneo Group Co., Ltd. (File No. 330282-2022-240-L), and
the Amendments to the Contingency Plan of Goneo Group Co., Ltd. (West Zone of Guanhaiwei
Town) for Environmental Emergencies (File No. 330282-2023-004-L) in accordance with relevant
legal provisions such as the requirements of the Environmental Protection Law of the People's
Republic of China and based on the actual situation, which provide standards and guidance for the
Company’s rescue operations for environmental pollution emergencies.
5. Environmental self-monitoring plan
√ Applicable □ Not applicable
In accordance with the pollutant discharge permits and the requirements of self-monitoring of
environmental protection, the Company has formulated the Management System for Self-
monitoring of Pollution Sources and regularly carries out self-monitoring work. In 2023, it
commissioned qualified third-party testing units to orderly carry out tests on spraying exhaust gas,
noise at the factory boundary, domestic sewage, etc., and made sure that the test reports issued were
all valid.
6. Administrative penalties imposed for environmental issues during the Reporting Period
□ Applicable √ Not applicable
88 / 266
Annual Report 2023
7. Other environmental information that should be disclosed
√ Applicable □ Not applicable
During the Reporting Period, as required by the Department of Ecological Environment of
Zhejiang Province, the Company prepared and disclosed a corporate environmental information
report in accordance with the law. Goneo Group Co., Ltd. was rated A in the environmental credit
evaluation of enterprises in Zhejiang Province in 2023.
(II) Environmental protection of companies other than key emission units
√ Applicable □ Not applicable
1. Administrative penalties for environmental problems
□ Applicable √ Not applicable
2. Other environmental information disclosed with reference to key emission units
√ Applicable □ Not applicable
Except for Goneo Group Co., Ltd. as a legal entity, all other units of the Group are not key
emission units and have strictly implemented relevant laws and regulations on environmental
protection, installed environmental protection equipment with advanced filtration technology for
processes that generate environmental pollution in accordance with the requirements of the
environmental credit evaluation, which passed the acceptance and met the discharge standards with
emission concentrations far below the limits. All three wastes were discharged in accordance with
the standard. There was no environmental pollution accident and no punishment by the
environmental protection authorities, and all the units were rated A in the environmental credit
evaluation of enterprises in Zhejiang Province.
During the Reporting Period, Goneo Photoelectric was recognized as a Green Factory of
Ningbo in 2023; Goneo Digital was recognized as a Green Factory of Ningbo in 2023; and Goneo
Low Voltage is among the first batch of Ningbo 2023 positive list of enterprises for ecological and
environmental supervision and enforcement.
3. Reasons for not disclosing other environmental information
□ Applicable √ Not applicable
(III) Efforts and results in ecological protection, pollution prevention and environmental
responsibility performance
√ Applicable □ Not applicable
To strengthen the awareness of environmental protection among employees, the Company
organized a photographic event at the World Environment Day on 5 June 2023. Promotional photos
and videos were taken on themes such as low carbon living and green factories, and winning works
were exhibited to motivate employees.
The Company has strengthened the environmental management on the spraying lines with the
internationally advanced “zeolite rotary adsorption + RTO combustion” technologies. The
89 / 266
Annual Report 2023
environmental protection equipment operated in an efficient manner during the Reporting Period,
with the VOC removal rate reaching over 95%.
In 2023, Goneo Group constructed two distributed photovoltaic power stations on idle factory
roofs, with a total installed capacity of 7.2 MW. It is expected to generate over 8 million kwh of
electricity annually, with over 98% for self-consumption and the surplus for grid connection.
The waste heat recovery project utilizing air compressor waste heat at Goneo Group's West
Zone Base was conducted at the end of 2023.
Ningbo Goneo implemented a centralised water supply project for precision carving machine
wastewater treatment and recovery, where wastewater extracted from the total water tank undergoes
solid-liquid separation before being returned to the total water tank for reuse.
Meanwhile, the spraying plants have increased research into source substitution - water-based
paints instead of oil-based paints - during the Reporting Period. The substantial investment has
produced preliminary results. Adhering to its business philosophy of “taking the long way with
professionalism and devotion”, the Company is committed to environmental responsibility.
(IV) Measures taken to reduce carbon emissions during the Reporting Period and their effects
Whether any measure was taken to
Yes
reduce carbon emissions
Emissions of CO2 equivalent reduced
/
(unit: ton)
During the Reporting Period, the Company actively
enhanced the management and conservation of energy
resources and took necessary measures, including
vigorously increasing the proportion of clean energy
use such as photovoltaic. In 2023, the actual use of
solar energy was about 5,540,000 kwh, and the total
Type of carbon reduction measures installed capacity of new photovoltaic power
(for example, use of clean energy in generation projects reached 7.2 MW, which is expected
power generation, use of carbon to generate more than 8,000,000 kwh of electricity
reducing technologies in production annually. Meanwhile, the Company strengthened the
processes, development and energy consumption management of equipment and the
production of novel products that can conservation management of water resources,
help reduce carbon emissions, etc.) promoted green office and issued office rules, etc.
Meanwhile, the Company is vigorously developing its
new energy business and has launched various
products such as new energy vehicle charging
plugs/points, chargers and portable products to actively
contribute to the national strategy of "carbon peaking
and carbon neutrality".
Detailed description:
□ Applicable √ Not applicable
II Fulfillment of Social Responsibility
(I) Indicate whether a separate social responsibility report, sustainability report or ESG
report has been disclosed.
√ Applicable □ Not applicable
90 / 266
Annual Report 2023
For details, please refer to the 2023 Environmental, Social and Governance Report of Goneo
Group Co., Ltd. published by the Company on the website of the Shanghai Stock Exchange
(www.sse.com.cn).
(II) Specific efforts in relation to social responsibility
√ Applicable □ Not applicable
Donations and public welfare
Number/content Description
programs
Total spending (RMB’0,000) 19,322.49
Of which: Funds
19,147.52
(RMB’0,000)
Worth of supplies
174.97 Donation of the Company’s products
(RMB’0,000)
Number of beneficiaries /
Detailed description:
√ Applicable □ Not applicable
For details, please refer to the 2023 Environmental, Social and Governance Report of Goneo
Group Co., Ltd. published by the Company on the website of the Shanghai Stock Exchange
(www.sse.com.cn).
III Efforts in Poverty Alleviation, Rural Revitalization, etc
√ Applicable □ Not applicable
Poverty alleviation and rural
Number/content Description
revitalization programs
Total spending (RMB’0,000) 1,000
Of which: Funds
1,000
(RMB’0,000)
Worth of
0
supplies (RMB’0,000)
Number of beneficiaries Residents of Guyaopu Village, Cixi
4,172
City, Zhejiang Province, China
Way of helping (through
industrial development, Building of a
employment, educational beautiful village
development, etc.)
Detailed description:
√ Applicable □ Not applicable
For details, please refer to the 2023 Environmental, Social and Governance Report of Goneo
Group Co., Ltd. published by the Company on the website of the Shanghai Stock Exchange
(www.sse.com.cn).
91 / 266
Annual Report 2023
Part VI Significant Events
I Fulfillment of Commitments
(I) Commitments of the Company's actual controller, shareholders, related parties and acquirers, as well as the Company and other entities during the
Reporting Period or commitments continuing to the Reporting Period
√ Applicable □ Not applicable
If it is not If it is not
Whether timely timely
Whether it is performed, performed,
Time of
Commitment Commitment there is a Term of timely the the plan
Promisor Commitment contents commitment
background category deadline for commitment and specific for the
making
performance strictly reasons next step
performed shall be shall be
stated stated
Within 36 months from the date of listing of the
Company's shares, the promisor will not transfer or
entrust others to manage the shares he/she directly
or indirectly holds in the Company which were
issued before the IPO, nor will the Company
repurchase such shares. If the shares held by the
promisor are reduced within two years after the
expiry of the lock-up period, the price of such
Within 36
Liangji reduction shall not be lower than the issue price of
months
Industrial, the IPO (if the Company's shares are subject to ex-
from the
Restricted Ninghui rights and ex-dividend matters such as dividend 6 February Not Not
Yes date of Yes
share sales Investment, distribution, share bonus and capital reserves to 2020 applicable applicable
Commitments listing of the
Suiyuan share capital, the issue price will be adjusted ex-
related to IPO Company's
Investment rights and ex-dividend, the same below); if the
shares
closing price of the Company's shares for 20
consecutive trading days is lower than the issue
price within six months after the listing of the
Company, or the closing price at the end of six
months after the listing is lower than the issue
price, the lock-up period for holding the Company's
shares will be automatically extended for at least
six months.
Within 36 months from the date of listing of the Within 36
Restricted 6 February Not Not
Qiyuanbao Company's shares, the promisor will not transfer or Yes months Yes
share sales 2020 applicable applicable
entrust others to manage the shares he/she directly from the
92 / 266
Annual Report 2023
or indirectly holds in the Company which were date of
issued before the IPO, nor will the Company listing of the
repurchase such shares. Company's
shares
Within 36 months from the date of listing of the
Company's shares, the promisor will not transfer or
entrust others to manage the shares he/she directly
or indirectly holds in the Company which were
issued before the IPO, nor will the Company
repurchase such shares. If the Company's shares
directly or indirectly held by the promisor are
reduced within two years after the expiry of the
lock-up period, the price of such reduction shall not
be lower than the issue price (if the Company's
shares are subject to ex-rights and ex-dividend
matters such as dividend distribution, share bonus
Ruan and capital reserves to share capital, the issue price
Liping, will be adjusted ex-rights and ex-dividend, the
Ruan same below); if the closing price of the Company's
Xueping, shares for 20 consecutive trading days is lower than Within 36
Cai the issue price within six months after the listing of months
Yingfeng, the Company, or the closing price at the end of six from the
Restricted 6 February Not Not
Liu months after the listing is lower than the issue Yes date of Yes
share sales 2020 applicable applicable
Shengsong, price, the lock-up period for holding the Company's listing of the
Zhou shares will be automatically extended for at least Company's
Zhenghua, six months. After the expiry of the above- shares
Li mentioned commitment lock-up period, during my
Guoqiang, term of office as a director, supervisor or senior
Zhang Lina management personnel of the Company, if I leave
the Company before the expiry of my term of
office, during the term of office determined at the
time of my assumption of office and within six
months after the expiry of my term of office: 1) I
will transfer no more than 25% of the total number
of shares of the Company held directly or indirectly
by me each year; 2) I will not transfer the shares of
the Company held directly or indirectly by me
within six months after leaving the Company; 3)
(iii) I will comply with laws, administrative
regulations, departmental rules and regulations,
regulatory documents and other regulations for the
93 / 266
Annual Report 2023
transfer of shares by directors, supervisors and
senior management personnel of the business rules
of the stock exchange.
Within 36 months from the date of listing of the
Company's shares, the promisor will not transfer or
entrust others to manage the shares he/she directly
or indirectly holds in the Company which were
issued before the IPO, nor will the Company
repurchase such shares. After the expiry of the
above-mentioned commitment lock-up period,
during my term of office as a director, supervisor or
senior management personnel of the Company, if I
Within 36
leave the Company before the expiry of my term of
Shen months
office, during the term of office determined at the
Huiyuan, from the
Restricted time of my assumption of office and within six 6 February Not Not
Guan Yes date of Yes
share sales months after the expiry of my term of office: 1) I 2020 applicable applicable
Xuejun, listing of the
will transfer no more than 25% of the total number
Li Yu Company's
of shares of the Company held directly or indirectly
shares
by me each year; 2) I will not transfer the shares of
the Company held directly or indirectly by me
within six months after leaving the Company; 3)
(iii) I will comply with laws, administrative
regulations, departmental rules and regulations,
regulatory documents and other regulations for the
transfer of shares by directors, supervisors and
senior management personnel of the business rules
of the stock exchange.
1. Specific conditions for initiating the stock price
stabilisation measures: Within three years of the
Company’s IPO and listing, if the closing price of
the Company's shares is lower than the latest
audited net asset value per share for 20 consecutive Three years
trading days (hereinafter referred to as the from the
Goneo "initiation condition"), the Company shall initiate 6 February date of the Not Not
Other Yes Yes
Group the measures for stabilizing its stock prices in line 2020 Company’s applicable applicable
with relevant provisions. In the event of changes in IPO and
the Company's net assets or the total number of listing
shares due to matters such as capitalisation from
capital reserve, distribution of stock or cash
dividends, follow-on offering, share allotment and
stock reverse split-up after the latest audit base day,
94 / 266
Annual Report 2023
the net assets per share shall be adjusted
accordingly.
2. When the initiation condition for the specific
measures to stabilise stock prices is triggered, the
Company shall, in accordance with laws and
regulations, normative documents, and relevant
plans of the Articles of Association, take one or
more of the following measures to stabilise stock
prices at the same time or in steps in the light of the
actual situation of the Company and the stock
market, and based on the principle of protecting the
interests of the Company and investors: (1) The
Company repurchases shares from the public; (2)
Controlling shareholders, directors who receive
remuneration from the Company (except
independent directors) and senior managers
increase their holdings of the Company's shares.
In strict accordance with the Proposal on the
Stabilization of Share Price within Three Years of
Listing, Ningbo Liangji Industrial Co., Ltd. will
fully and effectively fulfill its obligations and
responsibilities under the Proposal, and strongly Three years
urge the joint stock company and the relevant from the
Liangji parties to fully and effectively fulfill their 6 February date of the Not Not
Other Yes Yes
Industrial obligations and responsibilities under the Proposal. 2020 Company’s applicable applicable
When the General Meeting of the Company IPO and
resolves on the repurchase of shares in accordance listing
with the provisions of the Proposal, Ningbo Liangji
Industrial Co., Ltd. undertakes to vote in favor of
the proposal on the repurchase at the General
Meeting.
In strict accordance with the Proposal on the
Stabilization of Share Price within Three Years of
Listing, I will fully and effectively fulfill its Three years
Ruan obligations and responsibilities under the Proposal, from the
Liping, and strongly urge the company and the relevant 6 February date of the Not Not
Other Yes Yes
Ruan parties to fully and effectively fulfill the obligations 2020 Company’s applicable applicable
Xueping and responsibilities under the Proposal. When the IPO and
General Meeting of the Company resolves on the listing
repurchase of shares in accordance with the
provisions of the Proposal, I undertake that I and
95 / 266
Annual Report 2023
those acting in concert will vote in favor of the
proposal on the repurchase at the General Meeting.
In strict accordance with the Proposal on the
Three years
Stabilization of Share Price within Three Years of
Senior from the
Listing, I will fully and effectively fulfill its
management 6 February date of the Not Not
Other obligations and responsibilities under the Proposal, Yes Yes
of the 2020 Company’s applicable applicable
and strongly urge the company and the relevant
Company IPO and
parties to fully and effectively fulfill the obligations
listing
and responsibilities under the Proposal.
1. No reduction of the Company's shares will be
performed within 36 months after the Company's
shares are listed. 2. The methods of shareholding
Liangji reduction include but are not limited to call auction Three years
Industrial, on exchanges, block trade, and negotiating transfer. from the
Ruan 3. When reducing shareholdings, information such 6 February date of the Not Not
Others Yes Yes
Liping, and as the amount and method of reduction shall be 2020 Company’s applicable applicable
Ruan notified to the Company in writing in advance, and IPO and
Xueping the Company shall make an announcement in a listing
timely manner. Shareholding reduction shall be
performed after three trading days from the date of
the Company's announcement.
(1) The company and companies or other
organizations controlled by the company are not
engaged in the same or similar business as the
issuer and its subsidiaries, with no horizontal
competition. (2) The company and companies or
other organizations controlled by the company will
not engage in the same or similar business as the
existing business of the issuer and its subsidiaries
in any form outside China, including not investing
Settlement
Liangji in, acquiring or merging with companies or other 6 February Not Not Not
of horizontal No No
Industrial economic organizations outside China that compete 2020 applicable applicable applicable
competition
with the existing principal business of the issuer
and its subsidiaries. (3) If the issuer and its
subsidiaries engage in new business in the future,
the company and companies or other organizations
controlled by the company will not engage in
business activities in direct competition with the
new business of the issuer and its subsidiaries by
share holding or participating in but having
substantial control over the shares of the issuer and
96 / 266
Annual Report 2023
its subsidiaries within or outside China, including
investing in, acquiring or merging with companies
or other economic organizations within or outside
China that directly compete with the new business
of the issuer and its subsidiaries in the future. (4) If
the company and legal entities controlled by the
company have business operations in direct
competition with the issuer and its subsidiaries, the
issuer and its subsidiaries shall have the right to
centralize the competing businesses to the
operations of the issuer and its subsidiaries through
preferential acquisition or entrustment. (5) The
company undertakes not to use its position as a
shareholder of the issuer and its subsidiaries to seek
improper benefits and thereby harm the rights and
interests of other shareholders of the issuer and its
subsidiaries. If the rights and interests of the issuer
and its subsidiaries are damaged due to a breach of
the above statements and commitments by the
company and companies or other organizations
controlled by the company, the company agrees to
be liable to the issuer and its subsidiaries for the
corresponding damages.
(1) I and companies or other organizations
controlled by me are not engaged in the same or
similar business as the issuer and its subsidiaries,
with no horizontal competition. (2) I and
companies or other organizations controlled by me
will not engage in the same or similar business as
the existing business of the issuer and its
Ruan subsidiaries in any form outside China, including
Settlement
Liping, not investing in, acquiring or merging with 6 February Not Not Not
of horizontal No Yes
Ruan companies or other economic organizations outside 2020 applicable applicable applicable
competition
Xueping China that compete with the existing principal
business of the issuer and its subsidiaries. (3) If the
issuer and its subsidiaries engage in new business
in the future, I and companies or other
organizations controlled by me will not engage in
business activities in direct competition with the
new business of the issuer and its subsidiaries by
share holding or participating in but having
97 / 266
Annual Report 2023
substantial control over the shares of the issuer and
its subsidiaries within or outside China, including
investing in, acquiring or merging with companies
or other economic organizations within or outside
China that directly compete with the new business
of the issuer and its subsidiaries in the future. (4) If
I and legal entities controlled by me have business
operations in direct competition with the issuer and
its subsidiaries, the issuer and its subsidiaries shall
have the right to centralize the competing
businesses to the operations of the issuer and its
subsidiaries through preferential acquisition or
entrustment. (5) I undertake not to use its position
as a shareholder of the issuer and its subsidiaries to
seek improper benefits and thereby harm the rights
and interests of other shareholders of the issuer and
its subsidiaries. If the rights and interests of the
issuer and its subsidiaries are damaged due to a
breach of the above statements and commitments
by me and companies or other organizations
controlled by me, I agree to be liable to the issuer
and its subsidiaries for the corresponding damages.
The company will minimize and standardize the
related-party transactions with Goneo Group Co.,
Ltd. and its wholly-owned or controlled
subsidiaries. For related-party transactions that are
inevitable or occur for reasonable reasons, the
company will strictly comply with the provisions of
relevant laws, regulations and the Articles of
Association of the company, follow the principles
Settlement
of equitable, remunerative and fair transactions,
of related- Liangji 6 February Not Not Not
perform legal procedures, and determine the No Yes
party Industrial 2020 applicable applicable applicable
transaction prices in accordance with reasonable
transactions
prices recognized by the market to ensure the
fairness of the related-party transactions. The
company will not leverage its shareholder status to
induce the General Meeting or the Board of
Directors of the Company to make resolutions that
infringe upon the legitimate rights and interests of
the Company and other shareholders. In operating
decisions, the company will strictly follow the
98 / 266
Annual Report 2023
relevant provisions of the Company Law and the
Articles of Association to implement the avoidance
system of related shareholders to safeguard the
legitimate rights and interests of all shareholders.
I will minimize and standardize the related-party
transactions with Goneo Group Co., Ltd. and its
wholly-owned or controlled subsidiaries. For
related-party transactions that are inevitable or
occur for reasonable reasons, I will strictly comply
with the provisions of relevant laws, regulations
and the Articles of Association of the company,
follow the principles of equitable, remunerative and
fair transactions, perform legal procedures, and
Settlement Ruan determine the transaction prices in accordance with
of related- Liping, reasonable prices recognized by the market to 6 February Not Not Not
No Yes
party Ruan ensure the fairness of the related-party transactions. 2020 applicable applicable applicable
transactions Xueping I will not leverage its shareholder status to induce
the General Meeting or the Board of Directors of
the Company to make resolutions that infringe
upon the legitimate rights and interests of the
Company and other shareholders. In operating
decisions, I will strictly follow the relevant
provisions of the Company Law and the Articles of
Association to implement the avoidance system of
related shareholders to safeguard the legitimate
rights and interests of all shareholders.
(1) Upon dissolution of Suiyuan Investment and the
direct holding of Goneo Group shares by the
promisor through non-trading transfer, the promisor
shall inherit all commitments made by Suiyuan
Investment in the Goneo Group's Prospectus for
Initial Public Offering of Shares. The commitments
All partners not yet fulfilled by Suiyuan Investment shall 27
Commitments 21 June Not Not
Other of Suiyuan continue to be fulfilled by the promisor until all Yes September Yes
related to IPO 2023 applicable applicable
Investment commitments are fulfilled; 2024
(2) Some personnel within the promisor
concurrently serve as directors, supervisors, and
senior management of Goneo Group, and they will
continue to strictly fulfill the commitments made in
the Goneo Group's Prospectus for Initial Public
Offering of Shares. They will also strictly adhere to
99 / 266
Annual Report 2023
other regulations regarding shareholding of
directors, supervisors, and senior management of
Goneo Group as stipulated by laws, administrative
regulations, departmental rules, normative
documents, and Shanghai Stock Exchange business
rules;
(3) To protect the legitimate rights and interests of
listed companies and investors, maintain the order
of the securities market and social public interests,
after the dissolution of Suiyuan Investment and
completion of non-trading transfer to the promisor,
if any party within the promisor reduces its
holdings of Goneo Group shares, it commits to
abide by the following reduction rules:
1) Within 12 months from the date when the
promisor directly holds Goneo Group shares due to
the dissolution of Suiyuan Investment and non-
trading transfer, when reducing holdings, the total
number of Goneo Group shares held by the
promisor shall be calculated collectively. If
conducted through centralised bidding trading, the
total number of shares reduced within any
consecutive 90 days shall not exceed 1% of the
total number of Goneo Group shares; if conducted
through block trading, the total number of shares
reduced within any consecutive 90 days shall not
exceed 2% of the total number of Goneo Group
shares.
2) The promisor shall ensure that the reduction of
holdings by the promisor complies with the
aforementioned commitments. If any party within
the committing party intends to reduce holdings, it
shall notify other parties 25 trading days in advance
(notification methods include written, email, SMS,
and WeChat) and friendly negotiate with other
parties to ensure that the proportion of reduced
holdings does not violate the content of this
commitment. If negotiation fails, the reduction
quota that each party of the promisor enjoys shall
be calculated according to the internal proportion
100 / 266
Annual Report 2023
of Goneo Group shares held by each party of the
promisor at that time.
3) Premised on compliance with and fulfillment of
the aforementioned b) commitment obligations, the
promisor shall submit a written report to Goneo
Group 20 trading days before the first sale of
shares, and Goneo Group shall report the
promisor's reduction plan to the exchange in
accordance with regulations and make it public.
(4) The promisor shall strictly adhere to other
regulations regarding shareholding of the promisor
as stipulated by laws, administrative regulations,
departmental rules, normative documents, and
Shanghai Stock Exchange business rules.
(5) If any party within the promisor fails to fulfill
the commitments in this commitment letter or the
performance does not conform to the commitments
in this commitment letter, the profits obtained by
that party shall belong collectively to the promisor,
and if it causes losses to other entities within the
promisor or Goneo Group, it shall fully compensate
all losses of other entities within the promisor and
Goneo Group, and shall also bear legal and
regulatory provisions regarding the promisor's
shareholding.
The Company will not provide loans and any other
forms of financial assistance, including provision
Goneo Not Not Not Not
Other of guarantees for loans, to the awardees of the No Yes
Group applicable applicable applicable applicable
Restricted Share Incentive Plan for acquiring the
relevant restricted shares under the Incentive Plan.
Commitments If the Company is not eligible for the grant of
related to equity or exercise of equity arrangement due to a
equity Awardees of false record, misleading statement or material
incentives restricted omission in the information disclosure document,
Not Not Not Not
Other share the awardee shall return to the Company all the No Yes
applicable applicable applicable applicable
Incentive benefits received from the share Incentive Plan
Plans after the false record, misleading statement or
material omission are confirmed in relevant
information disclosure documents.
101 / 266
Annual Report 2023
102 / 266
Annual Report 2023
(II) Where there had been an earnings forecast for an asset or project and the Reporting Period was
still within the forecast period, explain why the forecast has or has not been reached for the
Reporting Period.
□ Forecast reached □ Forecast unreached √ Not applicable
(III) Fulfillment of performance commitments and the impact on goodwill impairment tests
□ Applicable √ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or Other Related Parties
for Non-Operating Purposes during the Reporting Period
□ Applicable √ Not applicable
III Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
IV Explanation Given by the Board of Directors Regarding “Independent Auditor’s Report with
Modified Opinion”
□ Applicable √ Not applicable
V Reasons for Accounting Policy or Estimate Changes or Correction of Material Accounting Errors
and the Impact
(I) Reasons for accounting policy or estimate changes and the impact
√ Applicable □ Not applicable
For details, see “40. Changes to critical accounting policies and estimates” under “V Critical
Accounting Policies and Estimates” of “Part X Financial Statements”.
(II) Reasons for correction of material accounting errors and the impact
□ Applicable √ Not applicable
(III) Communications with the former CPA firm
□ Applicable √ Not applicable
(IV) Approval process and other information
□ Applicable √ Not applicable
VI Appointment and Dismissal of CPA Firm
Unit: RMB’0,000
In service
Name of the domestic CPA firm Pan-China Certified Public Accountants LLP
The Company’s payment to the domestic CPA
288
firm
How many years the domestic CPA firm has
11
provided audit service for the Company
Name of certified public accountants of the
Yao Benxia, and Chen Zhuoyan
domestic CPA firm
How many years the certified public accountants
Yao Benxia: 1 year
of the domestic CPA firm have provided audit
Chen Zhuoyan: 1 year
service for the Company
Note: The audit fees of the Company for the year 2023 amounted to RMB2,880,000, of which the
audit fee for the financial statements of the Company for the year 2023 amounted to RMB2,280,000, the
103 / 266
Annual Report 2023
internal control audit fee amounted to RMB500,000 and the raised funds authentification fee amounted to
RMB100,000.
Name Payment
CPA firm for the audit of Pan-China Certified Public
50
internal control Accountants LLP
Appointment and dismissal of CPA firm:
√ Applicable □ Not applicable
As resolved by the 2022 Annual General Meeting of Shareholders, the Company decided to re-
appoint Pan-China Certified Public Accountants LLP as the independent auditor for the financial
statements and internal control of 2023.
Change of the CPA firm during the audit:
□ Applicable √ Not applicable
Indicate whether the audit fee decreased over 20% (inclusive) compared with last year.
□ Applicable √ Not applicable
VII Delisting Risk
(I) Reasons for the delisting risk warning
□ Applicable √ Not applicable
(II) The Company’s response
□ Applicable √ Not applicable
(III) Risk of termination of listing and the reasons
□ Applicable √ Not applicable
VIII Insolvency and Reorganization
□ Applicable √ Not applicable
IX Significant Legal Matters
□ The Company has material litigation and arbitration this year
√ The Company has no material litigation and arbitration this year
X Punishments on the Company as well as Its Directors, Supervisors, Senior Management,
Controlling Shareholder and Actual Controller for Violation of Laws or Regulations, as well as the
Relevant Rectifications
□ Applicable √ Not applicable
XI Credit Standings of the Company as well as Its Controlling Shareholder and Actual Controller
during the Reporting Period
□ Applicable √ Not applicable
XII Major Related-Party Transactions
(I) Continuing related-party transactions
1. Already disclosed in current announcement without new progress or changes
□ Applicable √ Not applicable
104 / 266
Annual Report 2023
2. Disclosed in current announcement but with new progress or changes
√ Applicable □ Not applicable
The Proposal on Estimated Continuing Related-Party Transactions for 2023 was approved at the 17th
Meeting of the Second Board of Directors. For details, please refer to the Announcement on Estimated
Continuing Related-Party Transactions for 2023 (Announcement No. 2023-018) disclosed by the
Company on the website of the Shanghai Stock Exchange (www.sse.com.cn). For the actual execution of
the aforesaid estimated related-party transactions, see the Announcement on Estimated Continuing
Related-Party Transactions for 2024 (Announcement No. 2024-019).
3. Undisclosed in current announcement
□ Applicable √ Not applicable
(II) Related-party transactions regarding purchase or sale of assets or equity investments
1. Already disclosed in current announcement without new progress or changes
□ Applicable √ Not applicable
2. Disclosed in current announcement but with new progress or changes
□ Applicable √ Not applicable
3. Undisclosed in current announcement
□ Applicable √ Not applicable
4. Where a performance commitment is involved in such a related-party transaction, the
performance results for the Reporting Period shall be disclosed.
□ Applicable √ Not applicable
(III) Major related-party transactions regarding joint investments in third parties
1. Already disclosed in current announcement without new progress or changes
□ Applicable √ Not applicable
2. Disclosed in current announcement but with new progress or changes
□ Applicable √ Not applicable
3. Undisclosed in current announcement
□ Applicable √ Not applicable
(IV) Amounts due to and from related parties
1. Already disclosed in current announcement without new progress or changes
□ Applicable √ Not applicable
2. Disclosed in current announcement but with new progress or changes
□ Applicable √ Not applicable
3. Undisclosed in current announcement
□ Applicable √ Not applicable
105 / 266
Annual Report 2023
(V) Financial transactions between the Company and related finance companies, or between finance
companies under the Company’s control and related parties
□ Applicable √ Not applicable
(VI) Other information
□ Applicable √ Not applicable
XIII Major Contracts and the Execution
(I) Entrustment, Contracting and Leases
1. Entrustment
□ Applicable √ Not applicable
2. Contracting
□ Applicable √ Not applicable
3. Leases
□ Applicable √ Not applicable
(II) Guarantees
□ Applicable √ Not applicable
(III) Cash entrusted to other entities for management
1. Cash entrusted for wealth management
(1) Total cash entrusted for wealth management
√ Applicable □ Not applicable
Unit: RMB’0,000
Unrecovered overdue
Type Funding source Amount Undue amount
amount
Bank’s financial
Self-funded 224,000.00 63,000.00
product
Trust
company’s
Self-funded 521,700.00 461,700.00
financial
product
Securities firm’s
financial Self-funded 218,000.00 418,000.00
product
Securities firm’s
financial Raised funds 30,000.00 30,000.00
product
Structured
Raised funds 18,000.00 5,000.00
deposits
Other information
□ Applicable √ Not applicable
(2) Single Wealth Management Entrustment
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
106 / 266
Annual Report 2023
(3) Impairment allowances for wealth management entrustment
□ Applicable √ Not applicable
2. Entrustment loans
(1) Total entrustment loans
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
(2) Single entrustment loans
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
(3) Impairment allowances for entrustment loans
□ Applicable √ Not applicable
3. Other information
□ Applicable √ Not applicable
(IV) Other significant contracts
□ Applicable √ Not applicable
107 / 266
Annual Report 2023
XIV Progress Report on the Use of Raised Funds
√ Applicable □ Not applicable
(I) Overall use of raised funds
√ Applicable □ Not applicable
Unit: RMB’0,000
Cumulative Cumulative
Proportion
Adjusted amount of investment
Total of Total
Of which: Net raised total raised progress as
Source Raised committed Investment investment amount of
Total amount of funds after committed funds of the end
of funds investment amount for amount raised
raised excessively deduction investment invested as of
raised availability amount the current for the funds for
funds raised of issuance amount of the end Reporting
funds date with raised year (4) current changed
funds expenses with raised of Period (%)
funds year (%) purposes
funds (1) Reporting (3) =
(5)=(4)/(1)
Period (2) (2)/(1)
Initial
Public
22 January
Offering 356,700.00 350,320.85 350,320.85 350,320.85 274,301.50 78.30 69,918.32 19.96 129,996.12
2020
of
Shares
(II) Details of raised investment projects
√ Applicable □ Not applicable
Unit: RMB’0,000
Significant
Cumulative Cumulative Planned
Involvem Adjusted Whether Benefits or changes in
Total amount of investment date for
ent in total Investment Whether investment research project
Source Raised funds Use of committed raised funds progress as of project to Benefits
Project change of investment amount for project has progress Specific reasons for investment results feasibility, Remaining
Project name of raised availability excessively investment invested as of the end of reach achieved
nature investme amount the current been meets progress not meeting plan achieved if any, amount
funds date raised funds amount for the end of Reporting designated this year
nt with raised year completed planned by this please
project Reporting Period (%) usable
direction funds (1) progress project explain
Period (2) (3)＝(2)/(1) state
specifically
Base construction Production For the base construction project
Initial
project for annual and 22 January February for annual output of 410 million
No Public No 75,452.86 75,452.86 15,305.86 50,972.50 67.56 No Yes N/A N/A No 13,039.84
output of 410 constructio 2020 2026 sets of wall switches and sockets,
Offering
million sets of n due to the large overall
108 / 266
Annual Report 2023
wall switches and of engineering volume of the
sockets Shares investment project, the
construction period is long, and
there are many uncontrollable
factors during the project
construction. Therefore, the
construction and filing of the
investment project have been
adversely affected, resulting in an
overall delay in the project
progress compared to the plan.
Construction
project for Initial
Production
automation Public
and 22 January November
upgrading of Yes Offering No 58,883.63 58,883.63 7,115.04 47,836.88 81.24 Yes Yes N/A 2,408.26 No 9,777.57
constructio 2020 2023
annual output of of
n
400 million sets of Shares
adaptors
Due to the large overall
engineering volume of the
investment project, the
construction period is long, and
Construction
there are many uncontrollable
project for a base Initial
Production factors during the project
with annual output Public
and 22 January February construction. In addition, due to
of 180 million sets Yes Offering No 115,203.61 115,203.61 20,336.38 86,185.73 74.81 No No N/A N/A No 27,062.84
constructio 2020 2025 external objective factors such as
of LED lamps, of
n the COVID-19 pandemic, the
and R&D centre Shares
construction and filing of the
and headquarters
investment project have been
adversely affected, resulting in an
overall delay in the project
progress compared to the plan.
As the Company undergoes
digital transformation and
upgrading, the demand for
information systems is
Initial
Operation continuously increasing and
Information Public
and 22 January February adjusting. Meanwhile, due to the
technology No Offering No 16,035.00 16,035.00 578.99 11,038.16 68.84 No No N/A N/A No 5,552.85
manageme 2020 2025 need for a large amount of time
promotion project of
nt for system implementation stage
Shares
for configuration, testing,
debugging, and optimisation, the
overall implementation progress
of the project has been delayed.
Due to external objective factors
Initial
Channel end Operation such as the COVID-19 pandemic,
Public
construction and and 22 January February the Company's channel terminal
No Offering No 84,745.75 84,745.75 26,582.05 78,268.23 92.36 No No N/A N/A No 60.38
brand promotion manageme 2020 2025 construction and brand promotion
of
project nt activities have been somewhat
Shares
restricted. Meanwhile, the
109 / 266
Annual Report 2023
Company actively analyses and
judges market changes,
dynamically adjusts the pace of
channel construction and brand
promotion, and more prudently
expends raised funds, leading to a
slight delay in the construction
progress of this project compared
to the original plan.
(III) Changes in or termination of raised funds invested projects during the Reporting Period
√ Applicable □ Not applicable
Unit: RMB’0,000
Raised funds
Total raised
Total raised used to
funds
funds input replenishing
investment
Project before before Project after Reason for change/termination working decision-making process and information disclosed
amount before
change/termin capital after
change/termin
ation change/termin
ation
ation
As the project became ready for use
Construction
and concluded on 30 November 2023,
project for For details, see the Announcement of Goneo Group Co., Ltd.
in order to improve the efficiency of
automation Permanently on the Conclusion of Certain Raised Funds Invested Project
the utilisation of raised funds, the
upgrading of replenishing and Replenishing Working Capital with the Balance of the
58,883.63 47,836.88 Company permanently replenished 14,792.51
annual output working Raised Funds (Announcement No. 2023-082), which has
the working capital with the balance
of 400 million capital been disclosed by the Company on the website of the
of the raised funds and interest
sets of Shanghai Stock Exchange (www.sse.com.cn).
income for the project as at 30
adaptors
November 2023.
110 / 266
Annual Report 2023
(IV) Other use of the raised funds during the Reporting Period
1. Early investment and replacement regarding the investment projects with the raised funds
□ Applicable √ Not applicable
2. Temporary replenishment of working capital with the idle raised funds
√ Applicable □ Not applicable
On 27 December 2021, the Ninth Meeting of the Second Board of Directors and the Ninth
Meeting of the Second Supervisory Committee of the Company approved the Proposal on the
Continued Use of Part of Idle Raised Funds for Temporary Replenishment of Working Capital,
agreeing that the Company would use up to RMB1.2 billion of temporarily idle raised funds to
replenish working capital under the premise that the construction of the raised funds invested project
and the use of the raised funds would not be affected. The period of use is within 12 months from
the expiration of the authorisation of the First Meeting of the Second Board of Directors, from 6
February 2022, to 5 February 2023. After the expiration, the Company will promptly return the
funds to the dedicated account for raised funds. The independent directors, the Supervisory
Committee and the sponsor expressed their consent to the continued use of part of idle raised funds
for temporary replenishment of working capital.
On 21 December 2022, the 16th Meeting of the Second Board of Directors and the 16th
Meeting of the Second Supervisory Committee of the Company approved the Proposal on the Use
of Part of Idle Raised Funds for Temporary Replenishment of Working Capital, agreeing that the
Company would use RMB1 billion of temporarily idle raised funds to replenish working capital.
The period of use is within 12 months from the expiration of the authorisation of the 9th Meeting
of the Second Board of Directors, from 6 February 2023, to 5 February 2024. After the expiration,
the Company will promptly return the funds to the dedicated account for raised funds. The
independent directors, the Supervisory Committee and the sponsor expressed their consent to the
use of part of idle raised funds for temporary replenishment of working capital.
As of 31 December 2023, the balance of idle raised funds that had not yet been returned was
nil.
3. Use of idle raised funds for cash management and investment in relevant products
√ Applicable □ Not applicable
Unit: RMB'0,000
Whether the
Effective Cash
highest
Date of deliberation management
balance
deliberation by amount of raised balance at
Start date End date exceeded
the Board of funds used for the end of
the
Directors cash Reporting
authorised
management Period
amount
111 / 266
Annual Report 2023
21 December 6 February 5 February
120,000.00 35,000.00 No
2022 2023 2024
Other notes:
As of 3 February 2024, the Company had a cash management balance of RMB0 using raised
funds.
4. Permanent replenishment of liquid capital or repayment of bank loans with excessively raised
funds
□ Applicable √ Not applicable
5. Others
√ Applicable □ Not applicable
The Proposal on Extension of Certain Raised Funds Invested Project was approved at the 21st
Meeting of the 2nd Board of Directors and the 21st Meeting of the 2nd Supervisory Committee held
by the Company on 20 December 2023. Based on the current progress in conducting the investment
projects with raised funds, the Company has decided to extend the time limit for the "base
construction project for annual output of 410 million sets of wall switches and sockets" to meet the
expected conditions for use to February 2026, and relevant implementation entity, investment
purpose, and investment scale remain unchanged.
The "base construction project for annual output of 410 million sets of wall switches and
sockets", a raised funds invested project, aims to fulfil the demands for the rapid growth of the
Company's wall switches and sockets business by building a new manufacturing plant with
automatic and lean product lines. The construction of the main body is in progress. The Company
made the decision based on the development plan at that time, taking into account various factors,
such as market conditions, the industrial development trend, and the actual situation of the Company.
However, due to the large overall engineering volume of the investment project, the construction
period is long, and there are many uncontrollable factors during the project construction. Therefore,
the construction and filing of the investment project have been adversely affected, resulting in an
overall delay in the project progress compared to the plan.
XV Other Significant Events for Investors’ Judgment of Value and Investment Decision-
making
□ Applicable √ Not applicable
112 / 266
Annual Report 2023
Part VII Changes in Ordinary Shares and Information about Shareholders
I Share Changes
(I) Share changes
1. Share changes
Unit: share
Before Increase/decrease in the current period (+/-) After
Bonus
Bonus issue
Percentage issue Percentage
Shares New issue from capital Other Subtotal Shares
(%) from (%)
reserves
profit
I Restricted shares 526,574,506 87.61 2,189,848 940,800 -526,145,938 -523,015,290 3,559,216 0.40
1. Shares held by the state
2. Shares held by state-owned
corporations
3. Shares held by other
526,574,506 87.61 2,189,848 940,800 -526,145,938 -523,015,290 3,559,216 0.40
domestic investors
Including: Shares held by
330,886,108 55.05 -330,886,108 -330,886,108
domestic corporations
Shares held by domestic
195,688,398 32.56 2,189,848 940,800 -195,259,830 -192,129,182 3,559,216 0.40
individuals
4. Shares held by overseas
investors
Including: Shares held by
overseas corporations
113 / 266
Annual Report 2023
Shares held by overseas
individuals
II Unrestricted shares 74,503,084 12.39 287,576,421 525,902,154 813,478,575 887,981,659 99.60
1. RMB-denominated
74,503,084 12.39 287,576,421 525,902,154 813,478,575 887,981,659 99.60
ordinary shares
2. Domestically listed foreign
shares
3. Overseas listed foreign
shares
4. Others
III Total shares 601,077,590 100.00 2,189,848 288,517,221 -243,784 290,463,285 891,540,875 100.00
114 / 266
Annual Report 2023
Description of changes in shares:
√ Applicable □ Not applicable
On 6 February 2023, a total of 524,614,506 restricted shares in the Company’s IPO were
allowed for public trading upon the expiry of the lockup period. After this change, the total share
capital of the Company remained unchanged, and the number of restricted public shares changed
from 526,574,506 to 1,960,000, while that of unrestricted public shares changed from 74,503,084
to 599,117,590. For details, please refer to the Announcement on Certain Restricted Shares in the
IPO Allowed for Public Trading (Announcement No.: 2023-007) published by the Company on the
website of the Shanghai Stock Exchange (www.sse.com.cn) on 31 January 2023.
On 8 June 2023, the Company implemented a dividend payout. Based on the total share capital
minus the shares in the repurchased share account at the record date of the dividend payout, the
Company paid out a cash dividend of RMB33 (tax inclusive) per 10 share to its shareholders, with
a bonus issue of 4.8 additional shares for every 10 shares held by shareholders from capital reserves.
After this change, the total share capital of the Company changed from 601,077,590 to 889,594,811,
and the number of restricted public shares changed from 1,960,000 to 2,900,800, while that of
unrestricted public shares changed from 599,117,590 to 886,694,011. For details, please refer to the
Announcement of Goneo Group Co., Ltd. on the 2022 Final Dividend Payout (Announcement No.:
2023-033) published by the Company on the website of the Shanghai Stock Exchange
(www.sse.com.cn) on 2 June 2023.
On 21 June 2023, according to the relevant provisions, the lifting of the restriction conditions
in the first lifting restriction period of the 2022 Restricted Share Incentive Plan has been achieved,
and a total of 811,283 shares held by 610 awardees have met the conditions for lifting the sale
restrictions. After this change, the total share capital of the Company remained unchanged, and the
number of restricted public shares changed from 2,900,800 to 2,089,517, while that of unrestricted
public shares changed from 886,694,011 to 887,505,294. For details, please refer to the
Announcement of Goneo Group Co., Ltd. on Lifting the Restriction Conditions in the First Lifting
Restriction Period of the 2022 Restricted Share Incentive Plan and Trading in the Market
(Announcement No.: 2023-045) published by the Company on the website of the Shanghai Stock
Exchange (www.sse.com.cn) on 16 June 2023.
115 / 266
Annual Report 2023
On 29 June 2023, a total of 2,189,848 restricted shares were granted to 750 awardees under the
2023 Restricted Share Incentive Plan. After this change, the total share capital of the Company
changed from 889,594,811 to 891,784,659, and the number of restricted public shares changed from
2,089,517 to 4,279,365, while that of unrestricted public shares remained unchanged. For details,
please refer to the Announcement of Goneo Group Co., Ltd. on the Grant Results of the 2023
Restricted Share Incentive Plan (Announcement No.: 2023-049) published by the Company on the
website of the Shanghai Stock Exchange (www.sse.com.cn) on 1 July 2023.
On 6 July 2023, according to the relevant provisions, the lifting of the restriction conditions in
the third lifting restriction period of the 2020 Restricted Share Incentive Plan has been achieved,
and a total of 217,599 shares held by 353 awardees have met the conditions for lifting the sale
restrictions. After this change, the total share capital of the Company remained unchanged, and the
number of restricted public shares changed from 4,279,365 to 4,061,766, while that of unrestricted
public shares changed from 887,505,294 to 887,722,893. For details, please refer to the
Announcement of Goneo Group Co., Ltd. on Lifting the Restriction Conditions in the Third Lifting
Restriction Period of the 2020 Restricted Share Incentive Plan and Trading in the Market
(Announcement No.: 2023-050) published by the Company on the website of the Shanghai Stock
Exchange (www.sse.com.cn) on 1 July 2023.
On 17 July 2023, according to the relevant provisions, the lifting of the restriction conditions
in the second lifting restriction period of the 2021 Restricted Share Incentive Plan has been achieved,
and a total of 258,766 shares held by 455 awardees have met the conditions for lifting the sale
restrictions. After this change, the total share capital of the Company remained unchanged, and the
number of restricted public shares changed from 4,061,766 to 3,803,000, while that of unrestricted
public shares changed from 887,722,893 to 887,981,659. For details, please refer to the
Announcement of Goneo Group Co., Ltd. on Lifting the Restriction Conditions in the Second
Lifting Restriction Period of the 2021 Restricted Share Incentive Plan and Trading in the Market
(Announcement No.: 2023-054) published by the Company on the website of the Shanghai Stock
Exchange (www.sse.com.cn) on 12 July 2023.
On 4 September 2023, as 18 awardees of the 2020 Restricted Share Incentive Plan, 2021
Restricted Share Incentive Plan and 2022 Restricted Share Incentive Plan have left the Company,
the Company repurchased and cancelled 69,810 restricted shares held by them, which had been
116 / 266
Annual Report 2023
granted but not lifted from restricted sales. After that, the total share capital of the Company changed
from 891,784,659 to 891,714,849, and the number of restricted public shares changed from
3,803,000 to 3,733,190, while that of unrestricted public shares remained unchanged. For details,
please refer to the Announcement of Goneo Group on the Implementation of the Repurchase and
Cancellation of Some Restricted Incentive Shares (Announcement No.: 2023-063) published by the
Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on 31 August 2023.
On 22 December 2023, as 35 awardees of the 2020 Restricted Share Incentive Plan, 2021
Restricted Share Incentive Plan, 2022 Restricted Share Incentive Plan and 2023 Restricted Share
Incentive Plan have left the Company, the Company repurchased and cancelled 173,974 restricted
shares held by them, which had been granted but not lifted from restricted sales. After that, the total
share capital of the Company changed from 891,714,849 to 891,540,875, and the number of
restricted public shares changed from 3,733,190 to 3,559,216, while that of unrestricted public
shares remained unchanged. For details, please refer to the Announcement of Goneo Group on the
Implementation of the Repurchase and Cancellation of Some Restricted Incentive Shares
(Announcement No.: 2023-076) published by the Company on the website of the Shanghai Stock
Exchange (www.sse.com.cn) on 20 December 2023.
2. Impact of share changes on financial indicators such as earnings per share and net asset
value per share for the most recent year and the most recent period (if any)
□ Applicable √ Not applicable
3. Other information necessary to be disclosed or required to be disclosed
□ Applicable √ Not applicable
(II) Change of restricted shares
√ Applicable □ Not applicable
Unit: Share
Number of Number of
shares lifted new Shares Reasons
Opening Closing Date of
Name of from restricted repurcha for
restricted restricted unlockin
shareholder restrictions shares sed and restricted
shares shares g
during the during the retired sales
year year
117 / 266
Annual Report 2023
Ningbo
Restricted 6
Liangji
324,000,000 324,000,000 0 shares in February
Industrial Co.,
the IPO 2023
Ltd.
Restricted 6
Ruan Liping 96,864,199 96,864,199 0 shares in February
the IPO 2023
Restricted 6
Ruan Xueping 96,864,199 96,864,199 0 shares in February
the IPO 2023
Ningbo
Ninghui
Investment Restricted 6
Management 4,072,954 4,072,954 0 shares in February
Partnership the IPO 2023
(Limited
Partnership)
Ningbo
Suiyuan
Investment Restricted 6
Management 1,787,442 1,787,442 0 shares in February
Partnership the IPO 2023
(Limited
Partnership)
Ningbo
Qiyuanbao
Investment Restricted 6
Management 1,025,712 1,025,712 0 shares in February
Partnership the IPO 2023
(Limited
Partnership)
Condition
Awardees of s for
the 2020 unlocking 6 July
135,800 217,599 85,750 3,951 0
Equity the equity 2023
Incentive Plan incentives
are met
Condition
Awardees of s for
the 2021 unlocking 17 July
374,800 258,766 159,336 24,285 251,085
Equity the equity 2023
Incentive Plan incentives
are unmet
Awardees of 1,449,400 811,283 695,714 163,008 1,170,823 Condition 21 June
118 / 266
Annual Report 2023
the 2022 s for 2023
Equity unlocking
Incentive Plan the equity
incentives
are unmet
Condition
Awardees of s for
the 2023 unlocking In
0 0 2,189,848 52,540 2,137,308
Equity the equity lockup
Incentive Plan incentives
are unmet
Total 526,574,506 525,902,154 3,130,648 243,784 3,559,216 / /
II Issuance and Listing of Securities
(I) Securities issued during the Reporting Period
□ Applicable √ Not applicable
Description of securities issued during the Reporting Period (for bonds with different interest rates
over the lifetime, please specify separately):
□ Applicable √ Not applicable
(II) Changes in Total Shares and Shareholder Structure, as well as in Asset and Liability
Structures
√ Applicable □ Not applicable
For changes in the shareholder structure, see “(I) Share changes” under “I Share Changes” of
“Part VII Share in Ordinary Shares and Information about Shareholders”.
For changes in asset and liabilities structures, see “(III) Analysis of assets and liabilities” under
“V Business Overview for the Reporting Period” of “Part III Management Discussion and Analysis”.
(III) Existing staff-held shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
(I) Total number of shareholders
Number of ordinary shareholders at the period-
21,589
end
Number of ordinary shareholders at the month-
20,249
end prior to the disclosure of this Report
Number of preference shareholders with
Not applicable
resumed voting rights at the period-end
119 / 266
Annual Report 2023
Number of preference shareholders with
resumed voting rights at the month-end prior to Not applicable
the disclosure of this Report
(II) Top 10 shareholders and public shareholders (or unrestricted shareholders) at the period-
end
Unit: share
Top 10 shareholders (exclusive of shares lent in refinancing)
Shareholding Shares in
increase/decre Closing Shareholdin Restricte pledge, marked
Full name of Nature of
ase in the shareholdin g percentage d shares or frozen
shareholder shareholder
Reporting g (%) held Shar
Status
Period es
Ningbo
Domestic non-
Liangji
155,520,000 479,520,000 53.79 N/A state-owned
Industrial
corporation
Co., Ltd.
Domestic
Ruan Liping 46,829,455 143,693,654 16.12 N/A
individual
Ruan Domestic
29,037,559 125,901,758 14.12 N/A
Xueping individual
Hong Kong
Securities
Clearing 9,863,848 18,784,149 2.11 N/A Other
Company
Limited
China
Merchants
Bank Co.,
Ltd.－
Xingquan 3,452,551 7,402,066 0.83 N/A Other
Herun Mixed
Securities
Investment
Fund
Ningbo
Ninghui
Investment
Management 1,955,018 6,027,972 0.68 N/A Other
Partnership
(Limited
Partnership)
China
1,900,192 4,500,807 0.50 N/A Other
Merchants
120 / 266
Annual Report 2023
Bank Co.,
Ltd.－
Xingquan
Heyi
Dynamic
Asset
Allocation
Mixed
Securities
Investment
Fund (LOF)
National
Social
Security 1,248,772 2,391,208 0.27 N/A Other
Fund—
Portfolio 114
China
Everbright
Bank
Company
Limited－
Xingquan
Business 458,132 2,277,982 0.26 N/A Other
Model
Selected
Mixed
Securities
Investment
Fund (LOF)
Industrial
Bank Co.,
Ltd.－
Xingquan
New View
Dynamic
Asset
Allocation 368,217 2,246,323 0.25 N/A Other
Regularly
Open-ended
Mixed
Initiated
Securities
Investment
Fund
121 / 266
Annual Report 2023
Top 10 unrestricted shareholders
Unrestricted public shares Type and number of shares
Name of shareholder
held Class Shares
Ningbo Liangji Industrial Co., RMB-denominated
479,520,000 479,520,000
Ltd. ordinary stock
RMB-denominated
Ruan Liping 143,693,654 143,693,654
ordinary stock
RMB-denominated
Ruan Xueping 125,901,758 125,901,758
ordinary stock
Hong Kong Securities Clearing RMB-denominated
18,784,149 18,784,149
Company Limited ordinary stock
China Merchants Bank Co.,
RMB-denominated
Ltd.－Xingquan Herun Mixed 7,402,066 7,402,066
ordinary stock
Securities Investment Fund
Ningbo Ninghui Investment
RMB-denominated
Management Partnership 6,027,972 6,027,972
ordinary stock
(Limited Partnership)
China Merchants Bank Co.,
Ltd.－Xingquan Heyi Dynamic
RMB-denominated
Asset Allocation Mixed 4,500,807 4,500,807
ordinary stock
Securities Investment Fund
(LOF)
National Social Security RMB-denominated
2,391,208 2,391,208
Fund—Portfolio 114 ordinary stock
China Everbright Bank
Company Limited Co., Ltd.－
RMB-denominated
Xingquan Business Model 2,277,982 2,277,982
ordinary stock
Selected Mixed Securities
Investment Fund (LOF)
Industrial Bank Co., Ltd.－
Xingquan New View Dynamic
RMB-denominated
Asset Allocation Regularly 2,246,323 2,246,323
ordinary stock
Open-ended Mixed Initiated
Securities Investment Fund
Share repurchase account
Not applicable
among the top 10 shareholders
Shareholders above
entrusting/entrusted with or Not applicable
waiving voting rights
Ruan Liping and Ruan Xueping are brothers and acting-in-concert parties. They
Related or acting-in-concert jointly control Ningbo Liangji Industrial Co., Ltd., the Company’s controlling
parties among shareholders shareholder. Ningbo Meishan Bonded Port Area Shuo Jin Investment
above Management Co., Ltd., under the joint control of Ruan Liping and Ruan Xueping,
is an executive partner of Ningbo Ninghui Investment Management Partnership
122 / 266
Annual Report 2023
(Limited Partnership), one of the Company’s shareholders. Save as disclosed
above, the Company is not aware of any other related parties or acting-in-concert
parties as defined in the Administration Methods for Acquisition of Listed
Companies among the shareholders above.
Preference shareholders with
resumed voting rights and their Not applicable
shareholdings
Top 10 shareholders involved in refinancing shares lending:
□ Applicable √ Not applicable
Changes in top 10 shareholders compared with the prior period:
□ Applicable √ Not applicable
Shareholdings of the top 10 restricted shareholders and the restrictions:
√ Applicable □ Not applicable
Unit: share
Restricted shares allowed for public
trading
Name of restricted Restricted shares
No. Increase in restricted Restriction
shareholder held Date when public
shares allowed for
trading is allowed
public trading
In the
lockup
To be unlocked
period
when the
according
1 Xie Weiwei 64,884 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
In the
lockup
To be unlocked
period
when the
according
2 Jiang Jinbiao 47,744 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
123 / 266
Annual Report 2023
In the
lockup
To be unlocked
period
when the
according
3 Liu Jiancheng 27,498 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
In the
lockup
To be unlocked
period
when the
according
4 Wang Qingwang 27,277 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
In the
lockup
To be unlocked
period
when the
according
5 Zhou Zhenghua 26,196 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
In the
lockup
To be unlocked
period
when the
according
6 Cui Jie 25,574 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
In the
lockup
To be unlocked
period
when the
according
7 Zhou Peifeng 24,420 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
124 / 266
Annual Report 2023
In the
lockup
To be unlocked
period
when the
according
8 Zhu Fuxian 23,309 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
In the
lockup
To be unlocked
period
when the
according
9 Zhao Kefeng 23,296 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
In the
lockup
To be unlocked
period
when the
according
10 Lu Maomao 23,148 conditions for the
to the
equity incentives
equity
are met
Incentive
Plan
Related or acting-in-concert
parties among shareholders No
above
(III) Indicate whether any strategic investor or general corporation has become a top-10
shareholder in a rights issue.
□ Applicable √ Not applicable
IV Controlling Shareholder and Actual Controller
(I) Controlling shareholder
1. Corporation
√ Applicable □ Not applicable
Name Ningbo Liangji Industrial Co., Ltd.
Legal representative/company
Ruan Liping
principal
Date of establishment 23 November 2011
Principal activities Investment management
125 / 266
Annual Report 2023
Interests held in other domestically
and overseas listed companies in Not applicable
the Reporting Period
Other information Not applicable
2. Individual
□ Applicable √ Not applicable
3. Special statement regarding the fact that the Company does not have a controlling
shareholder
□ Applicable √ Not applicable
4. Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
5. Illustration of the controlling shareholder’s ownership in the Company
√ Applicable □ Not applicable
Ningbo Liangji Industrial Co., Ltd.
53.79%
Goneo Group Co., Ltd.
(II) Actual controller
1. Corporation
□ Applicable √ Not applicable
2. Individual
√ Applicable □ Not applicable
Name Ruan Liping
Nationality Chinese
Residency in other countries or regions
Yes
(yes/no)
Chairman of the Board and President of Goneo
Main occupations and positions
Group Co., Ltd.
Controlling interests in other
Not applicable
domestically and overseas listed
126 / 266
Annual Report 2023
companies in the past 10 years
Name Ruan Xueping
Nationality Chinese
Residency in other countries or regions
Yes
(yes/no)
Vice Chairman of the Board of Goneo Group Co.,
Main occupations and positions Ltd. and General Manager of Shanghai Goneo
Electrics Co., Ltd.
Controlling interests in other
domestically and overseas listed Not applicable
companies in the past 10 years
3. Special statement regarding the fact that the Company does not have an actual controller.
□ Applicable √ Not applicable
4. Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
5. Illustration of the actual controller’s ownership in the Company
√ Applicable □ Not applicable
6. Indicate whether the actual controller controls the Company via trust or other ways of asset
management.
□ Applicable √ Not applicable
127 / 266
Annual Report 2023
(III) Other information about the controlling shareholder and the actual controller
□ Applicable √ Not applicable
V Indicate whether the cumulative number of shares put in pledge by the Company’s
controlling shareholder or the largest shareholder and its acting-in-concert parties accounts
for over 80% of their shareholdings in the Company.
□ Applicable √ Not applicable
VI Other 10% or Greater Corporate Shareholders
□ Applicable √ Not applicable
VII Restrictions on Shareholding Reduction
□ Applicable √ Not applicable
VIII Share Repurchases during the Reporting Period
□ Applicable √ Not applicable
128 / 266
Annual Report 2023
Part VIII Relevant Information of Preference Shares
□ Applicable √ Not applicable
129 / 266
Annual Report 2023
Part IX Relevant Information of Corporate Bonds
I Enterprise Bonds, Corporate Bonds and Debt Financing Instruments of Non-financial Enterprise
□ Applicable √ Not applicable
II Convertible Corporate Bonds
□ Applicable √ Not applicable
130 / 266
Annual Report 2023
Part X Financial Statements
I Independent Auditor’s Report
√ Applicable □ Not applicable
Independent Auditor’s Report
PCCPA Audit [2024] No. 4005
To the shareholders of Goneo Group Co., Ltd.:
I Opinion
We have audited the financial statements of Goneo Group Co., Ltd. (“Goneo” or the “Company”),
which comprise the consolidated and parent company (the Company as the parent exclusive of subsidiaries)
balance sheets as at 31 December 2023, the consolidated and parent company statements of income, cash
flows and changes in owners’ equity for the year then ended, as well as the notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated and parent company financial position of the Company at 31 December 2023, and the
consolidated and parent company operating results and cash flows for the year then ended, in conformity
with the Chinese Accounting Standards (CAS).
II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for Audit
of Financial Statements section of our report. We are independent of the Company in accordance with the
China Code of Ethics for Certified Public Accountants, and we have fulfilled our other ethical
responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
III Key Audit Matters
Key audit matters are matters that, based on our professional judgment, are deemed most important
to the audit of the financial statements of the current period. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
(I) Revenue recognition
1. Description
For relevant information disclosed, please refer to the Notes to the Financial Statements: III (XXII),
V (II) 1, and XV (I).
The revenue of Goneo Group is mainly derived from electric connection, smart electrical lighting
and new energy products. In 2023, Goneo Group achieved operating revenue of RMB15.695 billion.
Goneo Group has identified different specific methods of revenue recognition for different sales methods.
As operating revenue is one of the key performance indicators of Goneo Group, there may be an
inherent risk that Goneo Group's management (hereinafter referred to as the “management”) will achieve
131 / 266
Annual Report 2023
specific objectives or expectations through inappropriate revenue recognition. Therefore, we have
identified revenue recognition as a key audit matter.
2. Audit response
The audit procedures we performed in relation to revenue recognition primarily include:
(1) Understanding the key internal controls relating to revenue recognition, evaluating the design of
those controls, determining whether they are implemented and testing the effectiveness of the operation
of the relevant internal controls;
(2) Examining major sales contracts for major contractual terms and evaluating whether the revenue
recognition policy is in line with the provisions of the Accounting Standard for Business Enterprises;
(3) Implementing substantive analysis procedures for operating revenue and gross margin on a
monthly, product and customer basis to identify any significant or abnormal fluctuations and analyze the
causes of fluctuations;
(4) For domestic sales revenue, conducting sample-check on supporting documents related to revenue
recognition, including sales contracts, orders, sales invoices, outbound delivery orders, delivery notes,
transportation orders and customer sign-off sheets; for export revenue, obtaining information from the
Administration of Foreign Exchange and reconciling it with the carrying records, and checking supporting
documents such as sales contracts, export customs declarations, freight bills of lading and sales invoices
on a sample basis;
(5) Confirming with key customers on a sample basis regarding sales for the period based on the
accounts receivable letter;
(6) Verifying operating revenue recognized around the balance sheet date on a sample basis to
supporting documents such as outbound delivery orders, delivery notes, customer sign-off sheets and
freight bills of lading, and evaluating whether operating revenue is recognized in the appropriate period;
(7) Checking whether the information relating to operating revenue is properly presented in the
financial statements.
(II) Recognition, measurement and presentation of wealth management products
1. Description
For relevant information disclosed, please refer to the Notes to the Financial Statements: III (X), V
(I) 2, V (I) 10, V (II) 8, and X.
As at 31 December 2023, the wealth management balance of held-for-trading financial assets of
Goneo Group was RMB9,727 million, the wealth management balance of other current assets was RMB50
million, and the cumulative return on investment for wealth management products in 2023 amounted to
RMB191 million. We determined the recognition, measurement and presentation of wealth management
products as a key audit matter due to the large amount of wealth management products and the fact that
the return on investment of the relevant products had a significant impact on the net profit of Goneo Group
for 2023.
2. Audit response
132 / 266
Annual Report 2023
The audit procedures we performed in relation to the recognition, measurement and presentation of
wealth management products primarily include:
(1) Understanding the key internal controls relating to investments in wealth management products,
evaluating the design of those controls, determining whether they are implemented and testing the
effectiveness of the operation of the relevant internal controls;
(2) Checking whether the classification of wealth management products is correct based on the
contractual cash flow characteristics of the wealth management products and the business model of Goneo
Group in managing the wealth management products;
(3) Obtaining statements of account related to wealth management products, reconciling them with
the carrying amount and writing to banks, securities companies and trust companies to confirm the asset
balance and the existence of balances of wealth management products;
(4) Checking the supporting documents for increase and reduction in wealth management products
during the period on a sample basis, checking whether they have been authorized and approved, and
confirming that the amounts relating to the purchase, sale and return on investment of wealth management
products are correct and fully recorded;
(5) Reviewing the valuation method of wealth management products to check whether the basis for
obtaining their fair value, the measurement of their value at the end of the period and the accounting
treatment are correct;
(6) Checking whether information related to the recognition, measurement and presentation of wealth
management products has been properly presented in the financial statements.
IV Other Information
The Company’s management is responsible for the other information. The other information
comprises all of the information included in the Company’s 2021 Annual Report other than the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
V Responsibilities of Management and Those Charged with Governance for Financial
Statements
The Company’s management is responsible for the preparation of the financial statements that give
a fair view in accordance with CAS, and for designing, implementing and maintaining such internal
control as the management determines is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
133 / 266
Annual Report 2023
In preparing the financial statements, the management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern (if
applicable) and using the going concern basis of accounting unless the management either intends to
liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with CAS will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
(IV) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required by CAS to draw users’ attention
in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
(V) Evaluate the overall presentation, structure and content of the financial statements, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(VI) Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Company to express an opinion on the financial statements. We are
134 / 266
Annual Report 2023
responsible for the direction, supervision and performance of the Company audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any noteworthy deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Pan-China Certified Public Accountants LLP Chinese certified public accountant: Yao Benxia
(engagement partner)
HangzhouChina Chinese certified public accountant: Chen Zhuoyan
25 April 2024
II Financial Statements
Consolidated Balance Sheet
31 December 2023
Prepared by Goneo Group Co., Ltd.
Unit: RMB
Item Note 31 December 2023 31 December 2022
Current assets：
Monetary assets 4,743,714,425.66 4,611,966,169.54
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial
9,727,000,000.00 6,949,000,000.00
assets
Derivative financial assets 8,263,755.00 643,100.00
Notes receivable
Accounts receivable 264,754,433.75 226,808,699.19
Receivables financing 5,359,014.96 1,036,801.70
Prepayments 56,229,933.95 49,635,694.61
Premiums receivable
Reinsurance receivables
135 / 266
Annual Report 2023
Receivable reinsurance
contract reserve
Other receivables 11,433,179.13 71,887,692.32
Of which: Interest receivable
Dividends receivable
Financial assets purchased
under resale agreements
Inventories 1,421,078,059.44 1,285,218,456.09
Contract assets
Assets held for sale
Current portion of non-
current assets
Other current assets 109,982,385.06 363,825,426.89
Total current assets 16,347,815,186.95 13,560,022,040.34
Non-current assets：
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity
investments
Other equity investments
Other non-current financial
assets
Investment property
Fixed assets 1,986,168,945.03 1,854,494,510.57
Construction in progress 806,585,458.56 611,457,850.54
Productive living assets
Oil and gas assets
Right-of-use assets 18,802,451.89 13,312,707.57
Intangible assets 334,817,972.71 325,725,286.18
Development costs
Goodwill 45,133,442.04
Long-term prepaid expense 22,765,692.24 20,364,230.78
Deferred income tax assets 185,493,645.53 144,902,751.27
Other non-current assets 59,756,372.02 76,508,015.77
Total non-current assets 3,414,390,537.98 3,091,898,794.72
Total assets 19,762,205,724.93 16,651,920,835.06
Current liabilities：
Short-term borrowings 588,344,176.01 845,374,749.03
Borrowings from the central
bank
Loans from other banks and
financial institutions
Held-for-trading financial
18,200,000.00
liabilities
Derivative financial
liabilities
Notes payable
Accounts payable 2,056,657,805.40 1,643,661,963.53
Advances from customers
Contract liabilities 528,493,231.61 431,654,611.71
136 / 266
Annual Report 2023
Financial assets sold under
repurchase agreements
Customer deposits and
deposits from other banks and
financial institutions
Payables for acting trading
of securities
Payables for underwriting of
securities
Employee benefits payable 404,816,287.63 335,092,159.01
Taxes and levies payable 311,190,845.43 300,308,365.64
Other payables 705,060,906.64 446,413,870.85
Of which: Interest payable
Dividends payable
Fees and commissions
payable
Reinsurance payables
Liabilities directly
associated with assets held for
sale
Current portion of non-
406,959,339.77 8,798,658.13
current liabilities
Other current liabilities 68,532,796.91 56,140,971.75
Total current liabilities 5,070,055,389.40 4,085,645,349.65
Non-current liabilities：
Insurance contract reserve
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities 4,743,227.39 4,544,619.22
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income 68,417,470.86 53,820,328.00
Deferred income tax
72,166,350.39 57,821,992.37
liabilities
Other non-current liabilities 86,411,741.16 34,814,148.70
Total non-current
231,738,789.80 151,001,088.29
liabilities
Total liabilities 5,301,794,179.20 4,236,646,437.94
Owners’ equity (or shareholders’ equity)：
Paid-in capital (or share
891,540,875.00 601,077,590.00
capital)
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 3,760,751,549.12 3,863,547,883.54
Less: Treasury shares 165,893,723.38 129,612,354.00
Other comprehensive
13,570,498.15 4,389,526.95
income
Specific reserve
Surplus reserves 562,217,890.93 302,797,998.73
137 / 266
Annual Report 2023
General reserve
Retained earnings 9,383,734,874.02 7,756,575,284.95
Total equity attributable to
owners (or shareholders) of the 14,445,921,963.84 12,398,775,930.17
Company as the parent
Non-controlling interests 14,489,581.89 16,498,466.95
Total owners’ equity (or
14,460,411,545.73 12,415,274,397.12
shareholders’ equity)
Total liabilities and
owners’ equity (or 19,762,205,724.93 16,651,920,835.06
shareholders’ equity)
Legal representative: Ruan Liping Chief Financial Officer: Liu Shengsong
Head of the financial department: Shen Kewei
Balance Sheet of the Company as the Parent
31 December 2023
Prepared by Goneo Group Co., Ltd.
Unit: RMB
Item Note 31 December 2023 31 December 2022
Current assets：
Monetary assets 2,043,009,633.46 2,558,169,565.15
Held-for-trading financial
4,930,000,000.00 3,000,000,000.00
assets
Derivative financial
assets
Notes receivable
Accounts receivable 279,744,567.07 341,413,356.20
Receivables financing 2,996,611.56
Prepayments 80,438,282.35 60,568,126.16
Other receivables 1,933,070,108.44 2,756,026,303.85
Of which: Interest
receivable
Dividends
1,100,000,000.00 1,700,000,000.00
receivable
Inventories 351,411,922.28 292,728,441.34
Contract assets
Assets held for sale
Current portion of non-
current assets
Other current assets 50,265,479.45 253,744,657.54
Total current assets 9,670,936,604.61 9,262,650,450.24
Non-current assets：
Debt investments
Other debt investments
Long-term receivables
Long-term equity
742,389,522.46 688,178,210.52
investments
Other equity investments
Other non-current
financial assets
Investment property
Fixed assets 964,809,501.44 812,047,460.58
Construction in progress 585,682,503.17 517,776,172.33
138 / 266
Annual Report 2023
Productive living assets
Oil and gas assets
Right-of-use assets 3,090,067.64 2,707,156.94
Intangible assets 228,710,136.82 244,677,232.50
Development costs
Goodwill
Long-term prepaid
21,863,048.81 19,172,452.61
expense
Deferred income tax
9,403,769.99 8,221,067.37
assets
Other non-current assets 31,728,444.17 58,509,382.81
Total non-current
2,587,676,994.50 2,351,289,135.66
assets
Total assets 12,258,613,599.11 11,613,939,585.90
Current liabilities：
Short-term borrowings 233,206,211.94 611,169,986.13
Held-for-trading financial
18,200,000.00
liabilities
Derivative financial
liabilities
Notes payable
Accounts payable 803,088,395.25 596,911,385.90
Advances from customers
Contract liabilities 223,654,473.24 550,246,157.68
Employee benefits
134,932,917.12 108,720,042.83
payable
Taxes and levies payable 77,900,289.24 70,631,710.25
Other payables 154,649,519.47 196,246,589.96
Of which: Interest
payable
Dividends payable
Liabilities directly
associated with assets held
for sale
Current portion of non-
385,433,228.70 1,660,616.21
current liabilities
Other current liabilities 29,075,081.52 71,532,000.50
Total current liabilities 2,041,940,116.48 2,225,318,489.46
Non-current liabilities：
Long-term borrowings
Bonds payable
Of which: Preference
shares
Perpetual bonds
Lease liabilities 981,494.50 1,074,013.26
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income 14,597,142.86
Deferred income tax
25,671,672.66 25,750,110.98
liabilities
Other non-current
86,411,741.16 34,814,148.70
liabilities
139 / 266
Annual Report 2023
Total non-current
127,662,051.18 61,638,272.94
liabilities
Total liabilities 2,169,602,167.66 2,286,956,762.40
Owners’ equity (or shareholders’ equity)：
Paid-in capital (or share
891,540,875.00 601,077,590.00
capital)
Other equity instruments
Of which: Preference
shares
Perpetual bonds
Capital reserves 3,756,252,125.46 3,859,048,459.88
Less: Treasury shares 165,893,723.38 129,612,354.00
Other comprehensive
income
Specific reserve
Surplus reserves 562,217,890.93 302,797,998.73
Retained earnings 5,044,894,263.44 4,693,671,128.89
Total owners’ equity
10,089,011,431.45 9,326,982,823.50
(or shareholders’ equity)
Total liabilities and
owners’ equity (or 12,258,613,599.11 11,613,939,585.90
shareholders’ equity)
Legal representative: Ruan Liping Chief Financial Officer: Liu Shengsong
Head of the financial department: Shen Kewei
Consolidated Income Statement
January-December 2023
Unit: RMB
Item Note 2023 2022
I Total revenues 15,694,755,606.24 14,081,373,030.94
Of which: Operating revenue 15,694,755,606.24 14,081,373,030.94
Interest income
Insurance premium income
Fee and commission income
II Total costs and expenses 11,308,534,454.64 10,627,127,457.42
Of which: Cost of sales 8,914,184,532.27 8,730,082,585.08
Interest expense
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and levies 132,796,168.29 115,758,059.90
Selling expense 1,070,438,160.60 800,387,659.41
Administrative expense 626,198,552.51 500,596,373.88
R&D expense 673,427,386.61 588,296,080.11
Finance costs -108,510,345.64 -107,993,300.96
Of which: Interest expense 28,282,578.99 35,925,352.09
140 / 266
Annual Report 2023
Interest income 136,526,600.97 137,795,215.87
Add: Other income 253,389,151.69 132,940,722.76
Return on investment (“－”
198,690,784.99 271,988,811.92
for loss)
Of which: Share of profit or
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost
Exchange gain (“－” for loss)
Net gain on exposure hedges
(“－” for loss)
Gain on changes in fair value
18,200,000.00
(“－” for loss)
Credit impairment loss (“－”
-61,075,301.86 -30,470,523.21
for loss)
Asset impairment loss (“－”
-62,644,874.13 -11,504,455.94
for loss)
Asset disposal income (“－”
-5,484,474.02 -3,139,686.69
for loss)
III Operating profit (“－” for loss) 4,727,296,438.27 3,814,060,442.36
Add: Non-operating income 2,773,882.97 3,784,363.32
Less: Non-operating expense 193,735,368.88 63,388,662.51
IV Gross profit (“－” for gross loss) 4,536,334,952.36 3,754,456,143.17
Less: Income tax expense 672,008,460.95 568,905,187.60
V Net profit (“－” for net loss) 3,864,326,491.41 3,185,550,955.57
(I) By operating continuity
1.Net profit from continuing
3,864,326,491.41 3,185,550,955.57
operations (“－” for net loss)
2.Net profit from discontinued
operations (“－” for net loss)
(II) By ownership
1.Net profit attributable to
owners of the Company as the parent 3,870,135,376.47 3,188,709,584.89
(“－” for net loss)
2.Net profit attributable to non-
controlling interests (“－” for net -5,808,885.06 -3,158,629.32
loss)
VI Other comprehensive income, net
9,180,971.20 -3,147,863.42
of tax
(I) Other comprehensive income,
net of tax attributable to owners of 9,180,971.20 -3,147,863.42
the Company as the parent
1．Other comprehensive
income that will not be reclassified to
profit or loss
（1）Changes caused by
remeasurements on defined benefit
schemes
（2）Other comprehensive
income that will not be reclassified to
profit or loss under the equity
method
141 / 266
Annual Report 2023
（3）Changes in the fair value of
other equity investments
（4）Changes in the fair value
arising from changes in own credit
risk
2．Other comprehensive
income that will be reclassified to 9,180,971.20 -3,147,863.42
profit or loss
（1）Other comprehensive
income that will be reclassified to
profit or loss under the equity
method
（2）Changes in the fair value of
other debt investments
（3）Other comprehensive
income arising from the
reclassification of financial assets
（4）Credit impairment
allowance for other debt investments
（5）Reserve for cash flow
9,871,936.10 -3,182,910.54
hedges
（6）Differences arising from the
translation of foreign currency- -690,964.90 35,047.12
denominated financial statements
（7）Others
(II) Other comprehensive income,
net of tax attributable to non-
controlling interests
VII Total comprehensive income 3,873,507,462.61 3,182,403,092.15
(I) Total comprehensive income
attributable to owners of the 3,879,316,347.67 3,185,561,721.47
Company as the parent
(II) Total comprehensive income
attributable to non-controlling -5,808,885.06 -3,158,629.32
interests
VIII Earnings per share：
(I) Basic earnings per share
4.36 3.59
(RMB/share)
(II) Diluted earnings per share
4.36 3.59
(RMB/share)
Where business combinations involving entities under common control occurred in the current period, the
net profit achieved by the acquirees before the combinations was nil, with the amount for last year being
nil.
Legal representative: Ruan Liping Chief Financial Officer: Liu Shengsong
Head of the financial department: Shen Kewei
Income Statement of the Company as the Parent
January-December 2023
Unit: RMB
Item Note 2023 2022
I Operating revenue 6,046,213,479.23 5,527,593,701.30
142 / 266
Annual Report 2023
Less: Cost of sales 4,207,217,252.60 4,279,629,067.01
Taxes and levies 37,871,317.79 29,964,139.67
Selling expense 58,217,696.55 24,152,009.03
Administrative expense 303,182,739.78 257,770,302.62
R&D expense 255,939,611.18 243,157,154.27
Finance costs -47,250,144.67 -41,364,078.62
Of which: Interest expense 16,635,447.25 24,239,236.11
Interest income 64,458,205.14 66,036,418.38
Add: Other income 72,658,749.79 18,055,681.70
Return on investment (“－”
1,557,162,295.01 1,811,912,481.21
for loss)
Of which: Share of profit or
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost
Net gain on exposure hedges
(“－” for loss)
Gain on changes in fair value
18,200,000.00
(“－” for loss)
Credit impairment loss (“－”
45,336,291.05 -54,867,900.40
for loss)
Asset impairment loss (“－”
-65,852,432.40 -1,215,659.46
for loss)
Asset disposal income (“－”
-433,490.70 -1,475,418.41
for loss)
II Operating profit (“－” for loss) 2,858,106,418.75 2,506,694,291.96
Add: Non-operating income 2,221,989.66 2,547,612.90
Less: Non-operating expense 107,961,306.02 10,152,903.02
III Gross profit (“－” for gross loss) 2,752,367,102.39 2,499,089,001.84
Less Income tax expense 158,168,180.44 89,614,702.68
IV Net profit (“－” for net loss) 2,594,198,921.95 2,409,474,299.16
(I) Net profit from continuing
2,594,198,921.95 2,409,474,299.16
operations (“－” for net loss)
(II) Net profit from discontinued
operations (“－” for net loss)
V Other comprehensive income, net
of tax
(I) Other comprehensive income
that will not be reclassified to profit
or loss
1. Changes caused by
remeasurements on defined benefit
schemes
2. Other comprehensive income
that will not be reclassified to profit
or loss under the equity method
3. Changes in the fair value of
other equity investments
4. Changes in the fair value
arising from changes in own credit
risk
143 / 266
Annual Report 2023
(II) Other comprehensive income
that will be reclassified to profit or
loss
1. Other comprehensive income
that will be reclassified to profit or
loss under the equity method
2. Changes in the fair value of
other debt investments
3. Other comprehensive income
arising from the reclassification of
financial assets
4. Credit impairment allowance
for other debt investments
5. Reserve for cash flow hedges
6. Differences arising from the
translation of foreign currency-
denominated financial statements
7. Others
VI Total comprehensive income 2,594,198,921.95 2,409,474,299.16
VII Earnings per share：
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
Legal representative: Ruan Liping Chief Financial Officer: Liu Shengsong
Head of the financial department: Shen Kewei
Consolidated Cash Flow Statement
January-December 2023
Unit: RMB
Item Note 2023 2022
I Cash flows from operating activities:
Proceeds from sale of goods
17,836,040,227.21 15,641,388,293.29
and rendering of services
Net increase in customer
deposits and deposits from other
banks and financial institutions
Net increase in borrowings
from the central bank
Net increase in loans from
other financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, fees and commissions
received
Net increase in loans from
other banks and financial
institutions
Net increase in proceeds from
repurchase transactions
144 / 266
Annual Report 2023
Net proceeds from acting
trading of securities
Tax and levy rebates 15,375,947.44 25,583,045.08
Cash generated from other
484,470,792.10 370,035,518.43
operating activities
Subtotal of cash generated
18,335,886,966.75 16,037,006,856.80
from operating activities
Payments for goods and
8,552,858,075.92 8,181,607,639.34
services
Net increase in loans and
advances to customers
Net increase in deposits in the
central bank and other banks and
financial institutions
Payments for claims on
original insurance contracts
Net increase in loans to other
banks and financial institutions
Interest, fees and commissions
paid
Policy dividends paid
Cash paid to and for
2,078,209,390.40 1,902,469,445.47
employees
Taxes and levies paid 1,674,790,028.26 1,783,549,323.16
Cash used in other operating
1,202,747,373.62 1,111,466,230.67
activities
Subtotal of cash used in
13,508,604,868.20 12,979,092,638.64
operating activities
Net cash generated
4,827,282,098.55 3,057,914,218.16
from/used in operating activities
II Cash flows from investing activities:
Proceeds from disinvestment
Return on investment 194,153,746.50 290,169,702.87
Net proceeds from the disposal
of fixed assets, intangible assets 2,648,921.84 3,462,880.79
and other long-term assets
Net proceeds from the disposal
of subsidiaries and other business
units
Cash generated from other
9,076,568,830.88 9,613,715,309.31
investing activities
Subtotal of cash generated
9,273,371,499.22 9,907,347,892.97
from investing activities
Payments for the acquisition
and construction of fixed assets,
655,201,996.12 1,018,824,058.36
intangible assets and other long-
term assets
Payments for investments
Net increase in pledged loans
granted
Net payments for the
acquisition of subsidiaries and 19,107,492.09
other business units
Cash used in other investing
12,052,553,025.00 10,615,500,000.00
activities
145 / 266
Annual Report 2023
Subtotal of cash used in
12,707,755,021.12 11,653,431,550.45
investing activities
Net cash generated
-3,434,383,521.90 -1,746,083,657.48
from/used in investing activities
III Cash flows from financing activities:
Capital contributions received 110,993,059.60 94,703,508.00
Of which: Capital
contributions by non-controlling 3,800,000.00
interests to subsidiaries
Borrowings received 1,448,972,102.34 1,685,000,000.00
Cash generated from other
financing activities
Subtotal of cash generated
1,559,965,161.94 1,779,703,508.00
from financing activities
Repayment of borrowings 1,312,000,000.00 2,010,000,000.00
Interest and dividends paid 2,011,974,345.06 1,478,511,496.88
Of which: Dividends paid by
subsidiaries to non-controlling
interests
Cash used in other financing
223,036,997.15 236,647,700.66
activities
Subtotal of cash used in
3,547,011,342.21 3,725,159,197.54
financing activities
Net cash generated
-1,987,046,180.27 -1,945,455,689.54
from/used in financing activities
IV Effect of foreign exchange
rate changes on cash and cash 990,633.94 6,251,850.30
equivalents
V Net increase in cash and cash
-593,156,969.68 -627,373,278.56
equivalents
Add: Cash and cash
equivalents, beginning of the 1,925,343,174.98 2,552,716,453.54
period
VI Cash and cash equivalents,
1,332,186,205.30 1,925,343,174.98
end of the period
Legal representative: Ruan Liping Chief Financial Officer: Liu Shengsong
Head of the financial department: Shen Kewei
Cash Flow Statement of the Company as the Parent
January-December 2023
Unit: RMB
Item Note 2023 2022
I Cash flows from operating activities:
Proceeds from sale of goods
6,599,093,565.42 6,407,458,800.74
and rendering of services
Tax and levy rebates
Cash generated from other
923,317,676.31 843,447,820.27
operating activities
Subtotal of cash generated
7,522,411,241.73 7,250,906,621.01
from operating activities
Payments for goods and
4,234,884,701.23 3,994,662,575.62
services
Cash paid to and for
664,312,737.79 632,474,762.15
employees
146 / 266
Annual Report 2023
Taxes and levies paid 405,537,370.59 433,295,397.95
Cash used in other operating
921,810,410.79 1,409,134,256.52
activities
Subtotal of cash used in
6,226,545,220.40 6,469,566,992.24
operating activities
Net cash generated from/used
1,295,866,021.33 781,339,628.77
in operating activities
II Cash flows from investing activities:
Proceeds from disinvestment
Return on investment 2,160,641,473.10 2,118,439,604.49
Net proceeds from the disposal
of fixed assets, intangible assets 13,316,532.29 5,068,195.56
and other long-term assets
Net proceeds from the disposal
of subsidiaries and other business
units
Cash generated from other
4,559,069,155.00 3,920,000,000.00
investing activities
Subtotal of cash generated
6,733,027,160.39 6,043,507,800.05
from investing activities
Payments for the acquisition
and construction of fixed assets,
343,212,736.25 450,775,042.68
intangible assets and other long-
term assets
Payments for investments 57,449,318.78 148,409,344.00
Net payments for the
acquisition of subsidiaries and
other business units
Cash used in other investing
6,150,000,000.00 5,120,000,000.00
activities
Subtotal of cash used in
6,550,662,055.03 5,719,184,386.68
investing activities
Net cash generated
182,365,105.36 324,323,413.37
from/used in investing activities
III Cash flows from financing activities:
Capital contributions received 107,193,059.60 94,703,508.00
Borrowings received 800,972,102.34 1,010,000,000.00
Cash generated from other
financing activities
Subtotal of cash generated
908,165,161.94 1,104,703,508.00
from financing activities
Repayment of borrowings 795,000,000.00 1,060,000,000.00
Interest and dividends paid 2,000,859,649.52 1,466,589,386.88
Cash used in other financing
13,237,196.67 225,449,579.56
activities
Subtotal of cash used in
2,809,096,846.19 2,752,038,966.44
financing activities
Net cash generated
-1,900,931,684.25 -1,647,335,458.44
from/used in financing activities
IV Effect of foreign exchange
rate changes on cash and cash
equivalents
V Net increase in cash and cash
-422,700,557.56 -541,672,416.30
equivalents
147 / 266
Annual Report 2023
Add: Cash and cash
equivalents, beginning of the 1,187,537,825.42 1,729,210,241.72
period
VI Cash and cash equivalents,
764,837,267.86 1,187,537,825.42
end of the period
Legal representative: Ruan Liping Chief Financial Officer: Liu Shengsong
Head of the financial department: Shen Kewei
148 / 266
Annual Report 2023
Consolidated Statements of Changes in Owners’ Equity
January-December 2023
Unit: RMB
2023
Equity attributable to owners of the Company as the parent
Other equity Non- Total
Item Paid-in Other Spec Gene
instruments Less: controllin owners’
capital Capital comprehe ific Surplus ral Retained Oth g interests equity
Prefere Perpe Treasury Subtotal
(or share Oth reserves nsive reser reserves reser earnings ers
nce tual shares
capital) ers income ve ve
shares bonds
I Balance as at
601,077, 3,863,547, 129,612,3 4,389,526 302,797,9 7,756,575,2 12,398,775, 16,498,46 12,415,274,
the end of the
590.00 883.54 54.00 .95 98.73 84.95 930.17 6.95 397.12
prior year
Add: Adjustments
for changes in
accounting
policies
Adjustments
for correction of
previous errors
Other
adjustments
II Balance as at
601,077, 3,863,547, 129,612,3 4,389,526 302,797,9 7,756,575,2 12,398,775, 16,498,46 12,415,274,
the beginning of
590.00 883.54 54.00 .95 98.73 84.95 930.17 6.95 397.12
the year
III
- -
Increase/decrease 290,463, 36,281,36 9,180,971 259,419,8 1,627,159,5 2,047,146,0 2,045,137,1
102,796,33 2,008,885.
in the period (“-” 285.00 9.38 .20 92.20 89.07 33.67 48.61
4.42 06
for decrease)
(I) Total -
9,180,971 3,870,135,3 3,879,316,3 3,873,507,4
comprehensive 5,808,885.
.20 76.47 47.67 62.61
income 06
(II) Capital
increased and 1,946,06 185,720,88 36,281,36 151,385,581 3,800,000. 155,185,581
reduced by 4.00 6.58 9.38 .20 00 .20
owners
149 / 266
Annual Report 2023
1. Ordinary
1,946,06 94,557,385 96,503,449. 3,800,000. 100,303,449
shares increased
4.00 .41 41 00 .41
by owners
2. Capital
increased by
other equity
holders
3. Share-based
payments 91,163,501 36,281,36 54,882,131. 54,882,131.
recognized in .17 9.38 79 79
owners’ equity
4. Others
- - -
(III) Profit 259,419,8
2,242,975,7 1,983,555,8 1,983,555,8
distribution 92.20
87.40 95.20 95.20
1. Appropriation -
259,419,8
to surplus 259,419,89
92.20
reserves 2.20
2. Appropriation
to general reserve
3. Appropriation - - -
to owners (or 1,983,555,8 1,983,555,8 1,983,555,8
shareholders) 95.20 95.20 95.20
4. Others
(IV) Transfers -
288,517,
within owners’ 288,517,22
221.00
equity 1.00
1. Increase in
-
capital (or share 288,517,
288,517,22
capital) from 221.00
1.00
capital reserves
2. Increase in
capital (or share
capital) from
surplus reserves
3. Surplus
reserves used to
offset loss
4. Changes in
defined benefit
schemes
150 / 266
Annual Report 2023
transferred to
retained earnings
5. Other
comprehensive
income
transferred to
retained earnings
6. Others
(V) Specific
reserve
1. Increase in the
period
2. Used in the
period
(VI) Others
IV Balance as at
891,540, 3,760,751, 165,893,7 13,570,49 562,217,8 9,383,734,8 14,445,921, 14,489,58 14,460,411,
the end of the
875.00 549.12 23.38 8.15 90.93 74.02 963.84 1.89 545.73
period
2022
Equity attributable to owners of the Company as the parent
Non-
Total
Item Paid-in Other equity instruments Other Speci Gene controllin
Less: owners’
capital (or Capital comprehe fic Surplus ral Retained Oth g
Prefere Perpet Treasury Subtotal equity
share Oth reserves nsive reser reserves reser earnings ers interests
nce ual shares
capital) ers income ve ve
shares bonds
I Balance as
at the end of 601,180,5 3,914,068,2 80,711,54 7,537,390. 302,797,9 6,010,878,9 10,755,751,5 10,755,751,5
the prior 20.00 88.56 0.00 37 98.73 18.97 76.63 76.63
year
Add:
Adjustment
s for
-179,970.91 -179,970.91 -179,970.91
changes in
accounting
policies
Adjust
ments for
correction
151 / 266
Annual Report 2023
of previous
errors
Other
adjustments
II Balance
as at the 601,180,5 3,914,068,2 80,711,54 7,537,390. 302,797,9 6,010,698,9 10,755,571,6 10,755,571,6
beginning 20.00 88.56 0.00 37 98.73 48.06 05.72 05.72
of the year
III
Increase/de
- - -
crease in 48,900,81 1,745,876,3 1,643,204,32 16,498,46 1,659,702,79
102,930.0 50,520,405. 3,147,863.
the period 4.00 36.89 4.45 6.95 1.40
0 02 42
(“-” for
decrease)
(I) Total - -
3,188,709,5 3,185,561,72 3,182,403,09
comprehens 3,147,863. 3,158,629
84.89 1.47 2.15
ive income 42 .32
(II) Capital
- - - -
increased 48,900,81 19,657,09
102,930.0 50,520,405. 99,524,149.0 79,867,052.7
and reduced 4.00 6.27
0 02 2 5
by owners
1. Ordinary
- - - -
shares 215,286,3
102,930.0 127,989,88 343,379,146. 343,379,146.
increased 34.56
0 1.86 42 42
by owners
2. Capital
increased
by other
equity
holders
3. Share-
based
-
payments 77,469,476. 243,854,997. 243,854,997.
166,385,5
recognized 84 40 40
20.56
in owners’
equity
19,657,09 19,657,096.2
4. Others
6.27 7
- - -
(III) Profit
1,442,833,2 1,442,833,24 1,442,833,24
distribution
48.00 8.00 8.00
152 / 266
Annual Report 2023
1.
Appropriati
on to
surplus
reserves
2.
Appropriati
on to
general
reserve
3.
Appropriati
- - -
on to
1,442,833,2 1,442,833,24 1,442,833,24
owners (or
48.00 8.00 8.00
shareholder
s)
4. Others
(IV)
Transfers
within
owners’
equity
1. Increase
in capital
(or share
capital)
from capital
reserves
2. Increase
in capital
(or share
capital)
from
surplus
reserves
3. Surplus
reserves
used to
offset loss
4. Changes
in defined
benefit
153 / 266
Annual Report 2023
schemes
transferred
to retained
earnings
5. Other
comprehens
ive income
transferred
to retained
earnings
6. Others
(V) Specific
reserve
1. Increase
in the
period
2. Used in
the period
(VI) Others
IV Balance
as at the end 601,077,5 3,863,547,8 129,612,3 4,389,526. 302,797,9 7,756,575,2 12,398,775,9 16,498,46 12,415,274,3
of the 90.00 83.54 54.00 95 98.73 84.95 30.17 6.95 97.12
period
Legal representative: Ruan Liping Chief Financial Officer: Liu Shengsong Head of the financial department: Shen Kewei
Statements of Changes in Owners’ Equity of the Company as the Parent
January-December 2023
Unit: RMB
2023
Paid-in Other equity instruments Other
Less: Total
Item capital (or Capital comprehen Specific Surplus Retained
Preference Perpetual Treasury owners’
share Others reserves sive reserve reserves earnings
shares bonds shares equity
capital) income
I Balance as at the end of the 601,077,59 3,859,048, 129,612,35 302,797,9 4,693,671, 9,326,982,
prior year 0.00 459.88 4.00 98.73 128.89 823.50
Add: Adjustments for changes
in accounting policies
Adjustments for
correction of previous errors
154 / 266
Annual Report 2023
Other adjustments
II Balance as at the beginning 601,077,59 3,859,048, 129,612,35 302,797,9 4,693,671, 9,326,982,
of the year 0.00 459.88 4.00 98.73 128.89 823.50
-
III Increase/ decrease in the 290,463,28 36,281,369 259,419,8 351,223,1 762,028,60
102,796,33
period (“-” for decrease) 5.00 .38 92.20 34.55 7.95
4.42
(I) Total comprehensive 2,594,198, 2,594,198,
income 921.95 921.95
(II) Capital increased and 1,946,064.0 185,720,88 36,281,369 151,385,58
reduced by owners 0 6.58 .38 1.20
1. Ordinary shares increased 1,946,064.0 94,557,386 96,503,450
by owners 0 .41 .41
2. Capital increased by other
equity holders
-
3. Share-based payments 35,125,846 36,281,369
1,155,522.
recognized in owners’ equity .90 .38
48
56,037,653 56,037,653
4. Others
.27 .27
- -
259,419,8
(III) Profit distribution 2,242,975, 1,983,555,
92.20
787.40 895.20
-
1. Appropriation to surplus 259,419,8
259,419,8
reserves 92.20
92.20
- -
2. Appropriation to owners (or
1,983,555, 1,983,555,
shareholders)
895.20 895.20
3. Others
-
(IV) Transfers within owners’ 288,517,22
288,517,22
equity 1.00
1.00
-
1. Increase in capital (or share 288,517,22
288,517,22
capital) from capital reserves 1.00
1.00
2. Increase in capital (or share
capital) from surplus reserves
3. Surplus reserves used to
offset loss
155 / 266
Annual Report 2023
4. Changes in defined benefit
schemes transferred to
retained earnings
5. Other comprehensive
income transferred to retained
earnings
6. Others
(V) Specific reserve
1. Increase in the period
2. Used in the period
(VI) Others
IV Balance as at the end of the 891,540,87 3,756,252, 165,893,72 562,217,8 5,044,894, 10,089,011
period 5.00 125.46 3.38 90.93 263.44 ,431.45
2022
Paid-in Other equity instruments Other
Less: Total
Item capital (or Capital comprehen Specific Surplus Retained
Preference Perpetual Treasury owners’
share Others reserves sive reserve reserves earnings
shares bonds shares equity
capital) income
I Balance as at the end of the 601,180,52 3,909,568, 80,711,540 302,797,9 3,726,954, 8,459,790,
prior year 0.00 864.90 .00 98.73 923.09 766.72
Add: Adjustments for
changes in accounting 75,154.64 75,154.64
policies
Adjustments for
correction of previous errors
Other adjustments
II Balance as at the beginning 601,180,52 3,909,568, 80,711,540 302,797,9 3,727,030, 8,459,865,
of the year 0.00 864.90 .00 98.73 077.73 921.36
-
III Increase/ decrease in the - 48,900,814 966,641,0 867,116,90
50,520,405
period (“-” for decrease) 102,930.00 .00 51.16 2.14
.02
(I) Total comprehensive 2,409,474, 2,409,474,
income 299.16 299.16
- -
(II) Capital increased and - 48,900,814
50,520,405 99,524,149
reduced by owners 102,930.00 .00
.02 .02
- -
1. Ordinary shares increased - 215,286,33
127,989,88 343,379,14
by owners 102,930.00 4.56
1.86 6.42
156 / 266
Annual Report 2023
2. Capital increased by other
equity holders
-
3. Share-based payments 28,594,844 194,980,36
166,385,52
recognized in owners’ equity .11 4.67
0.56
48,874,632 48,874,632
4. Others
.73 .73
- -
(III) Profit distribution 1,442,833, 1,442,833,
248.00 248.00
1. Appropriation to surplus
reserves
- -
2. Appropriation to owners
1,442,833, 1,442,833,
(or shareholders)
248.00 248.00
3. Others
(IV) Transfers within owners’
equity
1. Increase in capital (or share
capital) from capital reserves
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) Specific reserve
1. Increase in the period
2. Used in the period
(VI) Others
IV Balance as at the end of 601,077,59 3,859,048, 129,612,35 302,797,9 4,693,671, 9,326,982,
the period 0.00 459.88 4.00 98.73 128.89 823.50
Legal representative: Ruan Liping Chief Financial Officer: Liu Shengsong Head of the financial department: Shen Kewei
157 / 266
Annual Report 2023
158 / 266
Annual Report 2023
III Company Profile
1. Company overview
√ Applicable □ Not applicable
Goneo Group Co., Ltd (hereinafter referred to as “the Company” or “Goneo”) is a joint stock limited
company transformed from the former Goneo Group Limited with 31 August 2017 as the base date. It was
registered with Ningbo Municipal Market Supervision Administration on 27 December 2017 and is
headquartered in Ningbo City, Zhejiang Province. The Company now holds a business license with a
unified social credit code of 91330282671205242Y, with a registered capital of RMB891.5409 million
and a total of 891.5409 million shares (each with a par value of RMB1). Among them, there are 3.5592
million restricted public A-shares and 887.9817 million unrestricted public A-shares. The Company’s
shares were listed for public trading on the Shanghai Stock Exchange on 6 February 2020.
The Company pertains to the electrical machinery and equipment manufacturing industry. It is mainly
engaged in the research, development, production and sales of power connection and power extension
products such as adaptors, wall switches and sockets, LED lighting and digital accessories. Products
mainly include adaptors, wall switches and sockets, LED lighting and digital accessories.
These financial statements have been authorized for issue by the Second Meeting of the Third Board
of Directors of the Company on 25 April 2024.
For the sake of conciseness, the subsidiaries and other related companies of the Company are
hereinafter referred to by their abbreviations as follows:
Full name Abbreviation
Subsidiaries
Ningbo Goneo Electrics Co., Ltd. Ningbo Goneo
Ningbo Goneo Photoelectric Technology Co., Ltd. Goneo Photoelectric
Ningbo Goneo Digital Technology Co., Ltd. Goneo Digital
Ningbo Goneo Precision Manufacturing Co., Ltd. Goneo Precision
Ningbo Banmen Electric Appliance Co., Ltd. Banmen Electric Appliance
Cixi Goneo Electrics Co., Ltd. Cixi Goneo
Shanghai Goneo Electrics Co., Ltd. Shanghai Goneo
Goneo International Trading (HK) Limited Goneo HK
Ningbo Goneo Supply Chain Management Co., Ltd. Goneo Management
Ningbo Goneo International Trading Co., Ltd. Goneo International Trading
Ningbo Goneo Electric Sales Co., Ltd. Electric Sales
Ningbo Xingluo Trading Co., Ltd. Xingluo Trading
Ningbo Goneo Low Voltage Electric Co., Ltd. Goneo Low Voltage Electric
Ningbo Goneo Domestic Electrical Appliance Co., Ltd. Domestic Electrical Appliance
Hainan Dacheng Supply Chain Management Co., Ltd. Hainan Dacheng
Ningbo Goneo Intelligent Technology Co., Ltd. Intelligent Technology
Dalitek Intelligent Technology (Shanghai) Inc. Dalitek
Shanghai Goneo Information Technology Co., Ltd. Information Technology
Ningbo Goneo Tool Technology Co., Ltd. Goneo Tool
Ningbo Goneo New Energy Technology Co., Ltd. Goneo New Energy
Shenzhen Goneo Intelligent Information Co., Ltd. Shenzhen Intelligent
Guangdong Murora Intelligent Lighting Co., Ltd. Murora Intelligent
Ningbo Goneo Marketing Co., Ltd. Goneo Marketing
Ningbo Qiquanyang Trading Co., Ltd. Qiquanyang Trading
159 / 266
Annual Report 2023
PT Goneo Electronic Indonesia Goneo Indonesia
GONEO New Energy Europe GmbH Goneo Germany
Goneo International Trading (SG) Pte. Ltd. Goneo Singapore
Other related parties
Ningbo Liangji Industrial Co., Ltd. Liangji Industrial
Hangzhou Liangniu Hardware and Electrical Co., Ltd. Liangniu Hardware
Hangzhou Hangniu Hardware and Electrical Co., Ltd. Hangniu Hardware
Hangzhou Feiniu Hardware and Electrical Co., Ltd. Feiniu Hardware
Yichang Yaoyang Trading Co., Ltd. Yaoyang Trading
Hubei Huantian Technology Co., Ltd. Huantian Trading
Cixi Libo Electric Co., Ltd. Cixi Libo
Suzhou Niuweiwang Trading Co., Ltd. Niuweiwang Trading
Beijing Chenhao Electronic Technology Co., Ltd. Chenhao Electronic
Changde Jianke Trading Co., Ltd. Jianke Trading
Shanghai Minshen Property Co., Ltd. Minshen Property
Hebei Qiudi Trading Co., Ltd. Qiudi Trading
Changde Guoxin Trading Co., Ltd. Guoxin Trading
Cixi Shenghui Electronics Co., Ltd. Shenghui Electronics
Ningbo Goneo Property Co., Ltd. Goneo Property
Kunshan Gaoshu Decoration Co., Ltd. Kunshan Gaoshu
Shanghai Jiangcheng Industrial Co., Ltd. Jiangcheng Industrial
IV Preparation Basis of Financial Statement
1. Basis of preparation
The financial statements of the Company are based on continuing operations.
2. Continuing operations
√ Applicable □ Not applicable
The Company does not undergo any event or situation which may cause great concern about
sustainable operation ability within 12 months since the end of the reporting period.
V Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimation hint:
□ Applicable √ Not applicable
1. Statement on Compliance with Accounting Standards for Business Enterprises
The Company’s Financial Statements are prepared in accordance with Accounting Standards for
Business Enterprises, and indicate relevant information about the Company's financial status, business
results and cash flow truly and completely.
2. Accounting period
The fiscal year of the Company is from January 1 to December 31 of every calendar year.
160 / 266
Annual Report 2023
3. Operating cycle
√ Applicable □ Not applicable
The operating cycle of the Company is short, and 12 months is taken as the liquidity criterion for
assets and liabilities.
4. Standard currency for accounting
The standard currency for accounting is RMB.
5. Method and Basis of Selection of Materiality Standards
√ Applicable □ Not applicable
The Company follows the principle of materiality in the preparation and disclosure of the financial
statements. The disclosures in the notes to the financial statements cover matters involving judgments
about materiality standards, the methods for determining materiality thresholds, and the bases for selecting
these standards are set out below:
Disclosure Matters Involving Disclosure in the
Method and Basis of Selection of Materiality
Materiality Standard Notes to the
Standards
Determination Financial Statements
No significant
individual provision
Significant individual provision
for bad debts of notes Exceeding 0.3% of the total assets
for bad debts of notes receivable
receivable in the
current period
Significant individual provision No significant
for bad debts of accounts individual provision
receivable for bad debts of Exceeding 0.3% of the total assets
Significant write-off of accounts accounts receivable
receivables in the current period
Significant individual provision The Company recognises individual other
for bad debts of other VII 8 receivables exceeding 0.3% of the total assets
receivables as significant other receivables.
The Company recognises projects with
Significant construction in amounts or balances exceeding 0.3% of the
VII 12
progress total assets as significant projects under
construction.
No significant cash
flows from investing The Company considers investing cash flows
Significant cash flows from
activities that require exceeding 5% of the total assets as significant
investing activities
disclosure in the investing cash flows.
current period
The Company identifies a subsidiary with
Significant subsidiaries and non- operating revenue exceeding 15% of the
X
wholly-owned subsidiaries Group's total operating revenue as a significant
subsidiary or non-wholly-owned subsidiary.
The Company considers commitments
Significant commitment XVI amounting to 0.3% of the total assets as
significant commitments.
The Company considers events with amounts
Significant subsequent events as
XVII exceeding 0.3% of the total assets as significant
of the balance sheet date
subsequent events on the balance sheet date.
161 / 266
Annual Report 2023
6. Accounting treatment of business combination under the same control and business combination
not under the same control
√ Applicable □ Not applicable
(1) Accounting methods of business combination under the same control
The Company’s assets and liabilities acquired from business combinations will be measured
according to the carrying value of the acquiree in financial statement of the final controlling party. The
Company will adjust capital reserves according to proportion of the acquiree’s carrying value in
consolidated financial statement of the final controlling party and the balance between carrying value and
the carrying value paid for combination consideration or total nominal value of issued shares; if the capital
reserve is insufficient to offset such difference, the difference will be offset against retained earnings.
(2) Accounting methods of business combination not under the same control
On the acquisition date, the difference between the combined cost and the fair value share of the
identifiable net assets of the acquiree obtained in the merger is recognized as goodwill. If the combined
cost is less than the fair value share of the identifiable net assets of the acquiree obtained in the combination,
firstly, the fair value of identifiable assets, liabilities and contingent liabilities of the acquiree and the
measurement of combined cost are reviewed. If the combined cost is still less than the fair value share of
identifiable net assets of the acquiree obtained in the merger after review, the difference is recorded in
profit and loss of the current period.
7. Judgment criteria for control and method of preparation of consolidated financial statements
√ Applicable □ Not applicable
(1) Judgment of control
Ownership of rights over the investee, variable returns through involvement in the investee's relevant
activities, and the ability to influence the variable returns of the investee by exercising control over it are
recognised as control.
(2) Method of preparation of consolidated financial statements
The Company as the parent brings all subsidiaries under its control into the consolidated scope of the
consolidated financial statements. The consolidated financial statements are based on the financial
statements of the Company as the parent and its subsidiaries and are prepared by the Company as the
parent according to other relevant information and Accounting Standards for Enterprises No. 33 -
Consolidated Financial Statements.
8. Classification of joint arrangements and accounting of joint operations
□ Applicable √ Not applicable
9. Criteria for recognition of cash and cash equivalents
Cash listed in cash flow statement refers to cash on hand and reserves always available for payment.
162 / 266
Annual Report 2023
Cash equivalents refer to investments that are held for short term, highly liquid, and readily convertible to
known amounts of cash and subject to insignificant risk of change in value.
10. Foreign currency business and conversion of foreign currency statement
√ Applicable □ Not applicable
(1) Conversion of foreign currency business
At the initial recognition of foreign currency transactions, foreign currency shall be converted into
RMB at the approximate exchange rate of the spot exchange rate on the transaction date. On the balance
sheet date, foreign currency monetary items are converted at the spot exchange rate on the balance sheet
date, and the exchange difference arising from different exchange rates is recorded in profit and loss of
the current period except the exchange difference between the principal and interest of foreign currency
special loans related to the purchase and construction of assets eligible for capitalization. Foreign currency
non-monetary items measured at historical cost adopt a similar exchange rate of the spot exchange rate on
the transaction date, without changing their RMB amount. Foreign currency non-monetary items measured
at fair value shall be converted at the spot exchange rate on the date when the fair value is determined, and
the difference shall be recorded in the profit and loss of the current period or other comprehensive income.
(2) Conversion of foreign currency financial statements
Assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance
sheet date. Except for the “undistributed profit” item, other items of owner’s equity items are converted at
the spot exchange rate on the transaction date; the income and expense items in the income statement are
converted at a similar exchange rate of the spot exchange rate on the transaction date. The differences
arising from the above conversion of foreign currency-denominated financial statements shall be recorded
in other comprehensive income.
11. Financial instruments
√ Applicable □ Not applicable
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when they are initially recognized:
(1) Financial assets measured at amortized cost; (2) financial assets at fair value through other
comprehensive income; (3) financial assets at fair value through current profit or loss.
Financial liabilities are classified into the following four categories when they are initially recognized:
(1) Financial liabilities at fair value through current profit or loss; (2) financial liabilities arising from the
transfer of financial assets not meeting the de-recognition criteria or from the continuing involvement in
the transferred assets; (3) financial guarantee contracts which do not fall within the category of (1) or (2)
above, and loan commitments which do not fall within category (1) above and made at an interest rate
lower than the market rate; (4) financial liabilities measured at amortized cost.
2. Recognition basis, measurement methods and derecognition conditions for financial assets and
financial liabilities
163 / 266
Annual Report 2023
(1) Determination basis and measuring methods for financial assets and financial liabilities
A financial instrument is recognized as an asset or liability when the Company becomes a party
thereto. For financial assets or financial liabilities measured at fair value through profit or loss, the
transaction expenses are directly included in profit and loss of the current period; for financial assets or
financial liabilities in other categories, the transaction expenses are included in the amount initially
recognized. However, accounts receivable initially recognized by the Company that do not include a
significant financing component or where the Company does not consider the financing component in a
contract with a term not exceeding one year will be initially measured at the transaction price defined in
Accounting Standard for Business Enterprises No.14-Income.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
Financial assets are subsequently measured at amortized cost by the effective interest method. Gains
or losses arising from a financial asset measured at amortized cost which does not form part of any hedging
relationship are recorded in current profit or loss at the time of de-recognition, reclassification,
amortization according to the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Such financial assets shall be subsequently measured at fair value. Interest, impairment loss or gain
and exchange gain/loss calculated using the effective interest method are recorded in current profit or loss,
other gains or losses are recorded in other comprehensive income. On derecognition, cumulative gains or
losses that were previously recorded in other comprehensive income are transferred from other
comprehensive income and recorded in current profit or loss.
3) Investments in equity instruments at fair value through other comprehensive income
Such financial assets shall be subsequently measured at fair value. Dividend received (except for the
portion which forms part of investment cost recovered) is recorded in current profit or loss, other gains or
losses are recorded in other comprehensive income. On derecognition, cumulative gains or losses that
were previously recorded in other comprehensive income are transferred from other comprehensive
income and recorded in retained earnings.
4) Financial assets at fair value through profit or loss
Gains or losses (including interest income and dividend income) arising from the subsequent
measurement at fair value are recorded in current profit or loss, unless the financial asset forms part of a
hedging relationship.
(3) Method for the subsequent measurement of financial liabilities
1) Financial liabilities measured at fair value through profit and loss of the current period
Such financial liabilities include transactional financial liabilities (including derivative instruments
which belong to the category of financial liabilities) and financial liabilities designated as at fair value
through current profit or loss. Such financial liabilities are subsequently measured at fair value. The
amount of changes in the fair value of financial liabilities designated as at fair value through profit or loss,
which arise from the change in the credit risk of the Company, is recorded in other comprehensive income,
164 / 266
Annual Report 2023
unless such accounting treatment would result in or increase the accounting mismatch of gain and loss.
Other gains or losses (including interest expense, except for the fair value changes arising from the change
in credit risk of the Company) on such financial liabilities are recorded in current profit or loss, unless
such financial liabilities form part of a hedging relationship. On derecognition, cumulative gains or losses
that were previously recorded in other comprehensive income are transferred from other comprehensive
income and recorded in retained earnings.
2) Financial liabilities resulting from the transfer of financial assets which does not satisfy the de-
recognition criteria or from the continuing involvement in the transferred assets are measured according
to the relevant provisions of the Accounting Standard for Business Enterprises No.23-Transfer of Financial
Assets.
3) Financial guarantee contracts that do not fall within the category of 1) or 2) above, and loan
commitments that do not fall within the category of 1) above and made at an interest rate lower than the
market rate, are subsequently measured at the higher of the two following amounts after initial recognition:
① The amount of loss provision determined according to the rules related to the impairment of financial
instruments; ② The remaining balance of the initially recognized amount after deducting the amount of
cumulative amortization determined according to relevant rules of the Accounting Standard for Business
Enterprises No.14-Income.
4) Financial liabilities measured at amortized cost
Such financial liabilities are measured at amortized cost using the effective interest method. Gains or
losses arising from a financial liability measured at amortized cost which does not form part of any hedging
relationship are recorded in current profit or loss at the time of de-recognition or amortization according
to the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when any of the following criteria is met:
① The contractual rights to receive the cash flows from the financial assets terminate; or
② The financial asset has been transferred, and such transfer satisfies the criteria set out in the
Accounting Standard for Business Enterprises No.23-Transfer of Financial Assets regarding the de-
recognition of financial assets.
2) Where the present obligation of a financial liability (or a portion thereof) has been discharged, the
Company de-recognizes the financial liability (or a portion thereof).
3. Recognition basis and measurement method of financial asset transfer
If the Company has transferred substantially all risks and rewards of ownership of the financial asset,
the financial asset is de-recognized, and the right and obligation arising from or retained in the transfer are
individually recognized as an asset or liability. If substantially all risks and rewards of ownership of the
financial asset are retained, the financial asset transferred remains recognized. If the Company has not
transferred or retained nearly all the risks and remunerations of ownership of the credit assets, different
measures should be taken in accordance with the following circumstances respectively: (1) If the Company
gives up the control of the financial assets, these financial assets shall be derecognized; (2) if the Company
165 / 266
Annual Report 2023
does not give up the control of the financial assets, the relevant financial assets shall be recognized and
the relevant liabilities shall be recognized accordingly in accordance with the extent of their continued
involvement in the transferred financial assets.
If the overall transfer of financial assets meets the conditions for derecognition, the difference
between the following two amounts shall be recorded in profit and loss of the current period: (1) The
carrying value of the transferred financial asset as of the date of derecognition; (2) Sum of the
consideration received for the transfer of the financial asset, and the portion of the cumulative amount of
fair value changes previously recorded in other comprehensive income that corresponds with the portion
of the asset de-recognized (the transferred financial asset is an investment in debt instruments at fair value
through other comprehensive income). Where a portion of the financial asset has been transferred and the
transferred portion as a whole satisfies the derecognition criteria, the carrying value of the financial asset
as a whole prior to its transfer is allocated between the portion of the asset derecognized and the portion
that remains recognized, according to their relative fair value as of the transfer date, and the difference
between the two amounts mentioned below is recorded in current profit or loss: (1) The carrying value of
the derecognized portion; (2) Sum of the consideration received for the derecognition portion, and the
portion of the cumulative amount of fair value changes previously recorded in other comprehensive
income, which corresponds with the derecognized portion (the transferred financial asset is an investment
in debt instruments at fair value through other comprehensive income).
4. Methods for determining the fair value of financial assets and financial liabilities
The Company applies valuation techniques that are applicable in the current situation and are
supported by sufficient available data and other information to determine the fair value of relevant
financial assets and financial liabilities. The Company classifies the inputs of valuation techniques into
the following levels and applies them accordingly:
(1) Level 1 inputs are the unadjusted quotation of the same assets or liabilities available on the active
market on the measurement day;
(2) Level 2 inputs are inputs for the relevant assets or liabilities other than the level 1 inputs, which
are directly or indirectly observable, including quotations for similar assets or liabilities in an active market;
quotations for the same or similar assets or liabilities in an inactive market; other observable inputs other
than quotations, such as interest rate and yield curve observable during normal quotation intervals; and
market-tested inputs;
(3) Level 3 inputs are non-observable inputs for the relevant assets or liabilities, including interest
rate and stock volatility which cannot be directly observed or cannot be verified by observable market
data, the future cash flow of a retirement obligation assumed in a business combination, and financial
forecast performed based on internal data.
5. Impairment of financial instruments
Based on the expected credit loss, for financial assets measured in amortized cost, investment in debt
instruments measured at fair value and whose changes are recorded in other comprehensive income,
contract assets, lease receivables, loan commitments classified as financial liabilities measured at fair
166 / 266
Annual Report 2023
value and whose changes are recorded in profit and loss of the current period, financial guarantee contracts
that do not belong to financial liabilities measured at fair value and whose changes are recorded in the
profits and losses of the current period or financial liabilities formed by the transfer of financial assets that
do not meet the conditions for derecognition or continue to be involved in the transferred financial assets
shall be impaired and loss reserves shall be recognized.
Expected credit loss refers to the weighted average of credit loss of financial instruments weighted
with default risks. Credit loss refers to the difference between all contractual cash flow receivable by the
Company under contracts which are discounted according to the original effective interest rate, and all the
cash flow expected to be received, namely the present value of all cash shortfall. Specifically, financial
assets acquired or derived to which credit impairment has occurred are discounted by the Company
according to the credit-adjusted effective interest rate.
For the acquired or derived financial assets with credit impairment, the Company only recognizes the
cumulative change of expected credit loss over the lifetime after initial recognition as the loss reserve on
the balance sheet date.
For lease receivables, receivables and contract assets formed by transactions regulated by Accounting
Standards for Business Enterprises No.14-Income, the Company uses simplified measurement methods to
measure the loss reserve according to the expected credit loss amount over the lifetime.
For financial assets other than the above measurement methods, at each balance sheet date, the
Company assesses the financial assets to see if the credit risk has significantly increased after initial
recognition. If the credit risk has significantly increased after initial recognition, the Company calculates
provision for loss according to the amount of expected credit loss over the lifetime of the assets; if credit
risk has not significantly increased after initial recognition, the Company calculates loss provision based
on expected credit loss in the future 12 months.
The Company uses available reasonable and well-founded information, including forward-looking
information, to determine whether the credit risk of financial instruments has increased significantly since
the initial recognition by comparing the default risk of financial instruments on the balance sheet date with
the default risk on the initial recognition date.
On the balance sheet date, if the Company judges that the financial instrument only has low credit
risk, it is assumed that the credit risk of the financial instrument has not increased significantly since the
initial recognition.
The Company assesses the expected credit risk and measures the expected credit loss on the basis of
single financial instrument or portfolios of financial instruments. When based on the portfolio of financial
instruments, the Company classifies the financial instruments into different portfolios according to the
common risk characteristics.
The Company re-measures expected credit loss at each balance sheet date, and the amount of increase
in loss provision or the written-back amount of loss provision arising from re-measurement is recorded in
current profit or loss as an impairment loss or gain. For financial assets measured at amortized cost,
impairment losses were allocated to offset the carrying value of the financial asset presented in the balance
167 / 266
Annual Report 2023
sheet. For the debt investments measured at fair value through other comprehensive income, the Company
recognized its loss reserves in other comprehensive income but did not offset the carrying value of the
financial asset.
6. Offsetting financial assets and financial liabilities
The financial assets and financial liabilities are respectively listed in the balance sheet, not offsetting
each other. However, when all the following criteria are met, financial assets and liabilities are shown on
a net basis after offsetting: (1) The Company has the statutory right to offset the recognized amounts, and
such right is currently enforceable; (2) The Company intends to settle the financial assets and liabilities
on a net basis, or to realize the assets and settle the liabilities simultaneously.
For the transfer of financial assets where the derecognition criteria are not met, the Company may
not offset the financial assets transferred against the related liabilities.
12. Notes receivable
□ Applicable √ Not applicable
Determination methods and accounting methods of the expected credit losses of notes receivable
□ Applicable √ Not applicable
Categories of groups for which allowances for doubtful accounts are established on a grouping basis
of credit risk characteristics and the basis for determining them
□ Applicable √ Not applicable
Aging methodology for age-based recognition of a group of credit risk characteristics
□ Applicable √ Not applicable
Judgment criteria for establishing allowances for doubtful accounts on an individual basis
□ Applicable √ Not applicable
13. Accounts receivable
□ Applicable √ Not applicable
Determination methods and accounting methods of the expected credit losses of accounts receivable
□ Applicable √ Not applicable
Categories of groups for which allowances for doubtful accounts are established on a grouping basis
of credit risk characteristics and the basis for determining them
□ Applicable √ Not applicable
Aging methodology for age-based recognition of a group of credit risk characteristics
√ Applicable □ Not applicable
Judgment criteria for establishing allowances for doubtful accounts on an individual basis
√ Applicable □ Not applicable
168 / 266
Annual Report 2023
14. Receivables financing
□ Applicable √ Not applicable
Determination methods and accounting methods of the expected credit losses of receivables
financing
□ Applicable √ Not applicable
Categories of groups for which allowances for doubtful accounts are established on a grouping basis
of credit risk characteristics and the basis for determining them
□ Applicable √ Not applicable
Aging methodology for age-based recognition of a group of credit risk characteristics
□ Applicable √ Not applicable
Judgment criteria for establishing allowances for doubtful accounts on an individual basis
□ Applicable √ Not applicable
15. Other receivables
√ Applicable □ Not applicable
Determination methods and accounting methods of the expected credit losses of other receivables
□ Applicable √ Not applicable
Categories of groups for which allowances for doubtful accounts are established on a grouping basis
of credit risk characteristics and the basis for determining them
□ Applicable √ Not applicable
Aging methodology for age-based recognition of a group of credit risk characteristics
√ Applicable □ Not applicable
Judgment criteria for establishing allowances for doubtful accounts on an individual basis
√ Applicable □ Not applicable
16. Inventories
√ Applicable □ Not applicable
Inventory categories, issue valuation method, inventory system, amortisation method for low-value
consumables and packing materials
√ Applicable □ Not applicable
1. Classification of inventories
Inventories refer to finished goods or commodities for sale held in daily activities, unfinished goods
in manufacturing process, and materials and supplies consumed in process of manufacturing products or
providing services, etc.
2. Valuation method of inventories upon delivery
169 / 266
Annual Report 2023
The cost measurement for the inventories delivered is made with a one-time weighted average method
at the end of the month.
3. Inventory system of inventories
The perpetual inventory system is adopted for the inventories of the Company.
4. Amortization of low-value consumables and packing materials
(1) Low-value consumables
Low-value consumables are amortized with a one-time write-off method.
(2) Packing materials
Packing materials are amortized with a one-time write-off method.
Recognition standards and establishment methods for inventory valuation allowances
√ Applicable □ Not applicable
On the balance sheet date, inventories should be measured whichever is lower in accordance with the
cost and net reliable value, and the provision for decline in value of inventories shall be made according
to the difference that the cost of inventories higher than the net realizable value. For inventories directly
used for sale, the net realizable value shall be determined by the estimated selling price of the inventory
minus the estimated selling expenses and relevant taxes and fees in the normal production and operation
process. For materials inventory requiring processing during normal process of production and operation,
the net realizable value shall be determined by deducting estimated costs occurring during completion,
estimated selling expenses and related taxes from estimated sale price of finished products. On the balance
sheet date, some of the same inventory have contract price agreed, others not; their net realizable value
shall be recognized respectively and compared with the corresponding cost to determine the amount of
provision or write-back of inventory depreciation reserve.
Categories of groups for which inventory valuation allowances are established on a grouping basis
and the basis for determining them, as well as the basis for determining net realizable value for
different categories of inventories
□ Applicable √ Not applicable
Calculation method and basis for determining the net realisable value of each age group for the
purpose of recognising the net realisable value of inventories based on the age of the inventories
□ Applicable √ Not applicable
17. Contract assets
√ Applicable □ Not applicable
Method and criteria for determining contract assets
√ Applicable □ Not applicable
The Company presented contract assets or contract liabilities on the balance sheet in accordance with
the relationship between performance obligations and customer payment. The Company will set off the
170 / 266
Annual Report 2023
contract assets and contract liabilities under the same contract and present them in net amount.
The right of the Company to receive consideration from its customers unconditionally (i.e. only
depending on the passage of time) is presented as receivables, and the right to receive consideration for
goods transferred to its customers (depending on factors other than the passage of time) is presented as a
contract asset.
The obligation to transfer goods to customers for consideration received or receivable from customers
is presented as a contract liability.
Determination methods and accounting methods of the expected credit losses of contract assets
□ Applicable √ Not applicable
Categories of groups for which allowances for doubtful accounts are established on a grouping basis
of credit risk characteristics and the basis for determining them
□ Applicable √ Not applicable
Aging methodology for age-based recognition of a group of credit risk characteristics
□ Applicable √ Not applicable
Judgment criteria for establishing allowances for doubtful accounts on an individual basis
□ Applicable √ Not applicable
18. Non-current assets or disposal groups held for sale
□ Applicable √ Not applicable
Recognition standards and accounting treatments for non-current assets or disposal groups held for
sale
□ Applicable √ Not applicable
Recognition standards and presentation methods for discontinued operations
□ Applicable √ Not applicable
19. Long-term equity investments
√ Applicable □ Not applicable
1. Judgment criteria for joint control and significant influence
Joint control refers to the control the Company shares with other entities over a certain arrangement
following relevant agreements by which any activity under the arrangement may be conducted only with
the unanimous agreement of all participants sharing the power of control. Significant influence refers to
the power to participate in making decisions on the financial and operating policies of an investee, but not
to control or do joint control together with other parties over the formulation of these policies.
2. Determination of investment cost
171 / 266
Annual Report 2023
(1) In case of a business combination under the same control, if the acquirer pays cash, transfers non-
cash assets, assumes debts or issues equity securities as merger consideration, the share of the owner’s
equity of the acquiree obtained on combination date in the carrying value of the financial statements of
the ultimate controlling party is deemed as an initial investment cost. Capital reserve is adjusted based on
the difference between initial investment cost of long-term equity investment and carrying value of paid
combination consideration or total nominal value of issued share; if the capital reserve is insufficient to
offset such difference, the difference will be offset against retained earnings.
If business combination under the same control is realized step by step through multiple transactions,
whether the multiple transactions is a “Package Deal” is determined. If the deals fell into a "Package Deal",
all transactions shall be treated as a transaction to gain control. If it is not a “package deal”, on the
combination date, the initial investment cost of the long-term equity investment shall be determined based
on the share of net assets’ carrying value of the acquiree in the consolidated financial statements of the
ultimate controlling party. The capital reserve is adjusted based on the difference between the initial
investment cost of the long-term equity investment on the combination date and the sum of the carrying
value of the long-term equity investment before the acquisition and the carrying value of the new payment
consideration on the acquisition date. If the capital reserve is insufficient to offset such difference, the
difference will be offset against retained earnings.
(2) For business combinations not under the same control, the fair value of the combination
consideration paid by it on the acquisition date shall be its initial investment cost.
For long-term equity investment formed by a business combination achieved step by step through
multiple transactions, relevant accounting treatment is performed with distinctions made between separate
financial statements and consolidated financial statements:
1) In the separate financial statements, the sum of the fair value of the originally held equity
investment and the additional investment cost shall be taken as the initial investment cost when converting
to using the cost method.
2) In the consolidated financial statements, it is determined whether it is a “package deal”. If the deals
fell into a "Package Deal", all transactions shall be treated as a transaction to gain control. If it is not a
“Package Deal”, the equity of the acquiree held prior to the acquisition date shall be re-measured according
to the fair value of the equity at the acquisition date, and the difference between the fair value and the
carrying value shall be recorded in the current investment income. Where the equity of the acquiree held
prior to the acquisition date involves other comprehensive income accounted for based on the equity
method, etc., the other comprehensive income related to it shall be converted into the current investment
income of the acquisition date. However, other comprehensive income arising from the re-measurement
of net liabilities or changes in net assets of defined benefit plans by the investee is excluded.
(3) Except for business combination: If it is acquired by paying cash, the actual acquisition price shall
be taken as its initial investment cost; if it is acquired by issuing equity securities, the fair value of the
issued equity securities shall be taken as its initial investment cost; if it is acquired by means of debt
restructuring, the initial investment cost shall be determined according to the Accounting Standards for
172 / 266
Annual Report 2023
Business Enterprises No. 12-Debt Restructuring; if it is acquired by exchange of non-monetary assets, the
initial investment cost shall be determined according to the Accounting Standards for Business Enterprises
No. 7-Exchange of Non-monetary Assets.
3. Method for subsequent measurement and recognition of profit or loss
The long-term equity investment controlled by the investee shall be accounted for by the cost method;
the long-term equity investment of associated enterprises and joint ventures shall be accounted for by the
equity method.
4. Treatment method of investing in subsidiaries until loss of control right step by step through
multiple transactions
(1) Principles for determining whether or not a transaction is a "package deal"
Multiple transactions for disposing of equity investments in subsidiaries until losing control, the
Company evaluates whether such step-by-step transactions constitute a "package deal" based on the terms,
conditions, disposal prices obtained separately, recipients of the equity sold, disposal methods, and timing
of each step of the transactions, taking into consideration their mutual influence. Terms, conditions, and
economic effects of transactions that meet one or more of the following criteria typically indicate that the
multiple transactions constitute a "package deal":
1) The transactions are concluded simultaneously or considering their mutual influence;
2) The transactions together achieve a complete commercial result;
3) The occurrence of one transaction depends on the occurrence of at least one other transaction;
4) A single transaction is uneconomical but becomes economical when considered together with other
transactions.
(2) Accounting treatment for transactions that are not "package deals"
1) Separate financial statements
For the disposal of long-term equity investments, the difference between the carrying value and the
actual price acquired shall be recorded into profit and loss of the current period. For the remaining equity,
if it still has a significant impact on the investee or implements joint control with other parties, it shall be
accounted for by the equity method; if it is no longer possible to exercise control, joint control or
significant influence on the investee, accounting shall be carried out in accordance with the relevant
provisions of Accounting Standards for Business Enterprises No. 22-Recognition and Measurement of
Financial Instruments.
2) Consolidated financial statements
Before the loss of control right, the difference between the disposal price and the share of net assets
is continuously calculated by the subsidiary from the acquisition date or combination date corresponding
to the disposal of long-term equity investment shall be adjusted, and the capital reserve (capital premium)
shall be adjusted. If the capital premium is insufficient to offset, the retained earnings shall be offset.
In case of loss of control over the original subsidiary, the remaining equity shall be re-measured
according to its fair value on the date of loss of control. The aggregate of the consideration obtained by
disposing of the equity and the fair value of the remaining equity less the portion of the net assets of the
173 / 266
Annual Report 2023
subsidiary that has been measured, as calculated at the original shareholding proportion, from the
acquisition date or combination date is recognized in profit and loss of the current period on investments
in which the control is lost, and goodwill shall be offset. Other comprehensive income, etc. related to the
original subsidiary’s equity investment will be converted into income from investment for the current
period when the control is lost.
(3) Accounting treatment for transactions that are "package deals"
1) Individual financial statements
Each transaction is accounted for as a single disposal of a subsidiary and loss of control. However,
any difference between the disposal proceeds and the carrying value of the long-term equity investment
corresponding to the disposal investment is recognised in other comprehensive income in the individual
financial statements, and transferred to the profit or loss of the period when control is lost.
2) Consolidated financial statements
The Company treats each transaction as a transaction that disposes of a subsidiary and loses control.
However, the difference between each disposal price before losing control and the share of subsidiaries’
net assets corresponding to the disposed investment shall be recognized as other comprehensive income
in the consolidated financial statements, and shall be transferred into the profits and losses of the current
period in case of loss of control.
20. Investment property
Not applicable
21. Fixed assets
(1). recognition criteria
√ Applicable □ Not applicable
The fixed assets of the Company refer to tangible assets held for production of goods, provision of
labor services, lease or business with a service life of over a fiscal year. Fixed assets shall be recognized
when the economic benefits are flowing in and the cost can be measured reliably.
(2). Depreciation method
√ Applicable □ Not applicable
Depreciation Depreciable life Residual value Annual
Category
method (year) rate depreciation rate
Straight-line
Houses and
depreciation 20 3% 4.85%
buildings
method
Straight-line
Machinery
depreciation 4-10 3% 9.70%-24.25%
equipment
method
Straight-line
Means of
depreciation 2-10 3% 9.70%-48.50%
transportation
method
174 / 266
Annual Report 2023
Straight-line
Electronic and
depreciation 2-10 3% 9.70%-48.50%
other equipment
method
Straight-line
Fixed assets
depreciation 5 0% 20%
fixtures
method
22. Construction in progress
√ Applicable □ Not applicable
1. Fixed assets shall be recognized when the economic benefits are flowing in and the cost can be
measured reliably. The construction in progress is measured according to the actual cost incurred before
the construction of the asset reaches its intended serviceable condition.
2. When construction in progress reaches expected serviceable conditions, it will be carried forward
into fixed assets based on its actual cost. For those that have reached their intended serviceable status but
have not yet completed the settlement, they shall be transferred to fixed assets according to the estimated
value, and the original provisional value shall be adjusted according to the actual cost after the final
accounts are completed, but the depreciation already accrued shall not be adjusted.
Category Standard and timing for transferring construction in progress to fixed assets
Buildings and
Transferred to fixed assets after completion inspection and fire inspection
constructions
Machinery Transferred to fixed assets after installation, commissioning, reaching the
equipment intended usable state, and passing acceptance
Electronic and other Transferred to fixed assets after installation, commissioning, reaching the
equipment intended usable state, and passing acceptance
23. Borrowing costs
√ Applicable □ Not applicable
1. Recognition principles for the capitalization of borrowing costs
The borrowing costs that have occurred and can be directly attributed to the acquisition, construction
or production of assets eligible for capitalization are capitalized by the Company and recorded in relevant
cost of assets; other borrowing costs are recognized as expenses based on the amount incurred when they
occur, and shall be recorded in profit and loss of current period.
2. Period for capitalization of borrowing costs
(1) When all the following conditions are met by the borrowing costs, capitalization will start: 1)
asset expenditure has occurred; 2) borrowing costs have occurred; 3) acquisition, construction or
production activities have started in order to make the fixed asset be ready for the intended use or sale.
(2) If the acquisition, construction or production of an asset eligible for capitalization is continuously
suspended for over 3 months for abnormal reasons, capitalization of the borrowing costs shall be
suspended; borrowing costs incurred during the suspension shall be recognized as the current expenses
until the acquisition, construction or production of the asset is resumed.
(3) When the assets with the purchase, construction or production meeting the capitalization
175 / 266
Annual Report 2023
conditions reach the expected available or marketable state, the borrowing cost ceases to be capitalized.
3. Capitalization rate and capitalization amount of borrowing costs
For a specifically borrowed fund for the acquisition, construction or production of an asset eligible for
capitalization, the amount of interest that shall be capitalized is determined based on the interest expenses
incurred in the period when a specifically borrowed fund is obtained (including the amortization of
discounts or premiums recognized according to the effective interest method) less any income earned on
the unused borrowing fund as a deposit in a bank or as a temporary investment. Where a general borrowing
is used for the acquisition, construction and production of an asset eligible for capitalization, the amount
of interest that shall be capitalized is determined by multiplying the part of the accumulative asset
disbursements in excess of the weighted average asset disbursement for the specifically borrowed fund by
the capitalization rate of the general borrowing used.
24. Biological assets
□ Applicable √ Not applicable
25. Oil and gas assets
□ Applicable √ Not applicable
26. Intangible assets
(1) Service life and determination basis, estimation, amortization method or review process
√ Applicable □ Not applicable
1. Intangible assets include land use rights, software, etc., which are initially measured at costs.
2. Intangible assets with limited service life are properly amortized within the service life based on
the expected method to realize economic benefits relating to the intangible assets. Where the expected
realization method cannot be reliably determined, Straight-line Amortization Method is adopted. The
details are as follows:
Amortization period Amortization
Item
(year) method
Land use right Duration of land use Straight line method
Software 2-5 Straight line method
27. Long-term assets impairment
√ Applicable □ Not applicable
For long-term equity investments, fixed assets, construction in progress, right-of-use assets, long-
term assets with limited service life and other long-term assets, if there are signs of impairment on the
balance sheet date, the recoverable amount shall be estimated. Goodwill and intangible assets with
uncertain service life formed by business combinations are tested for impairment every year regardless of
whether there are signs of impairment. Goodwill is tested for impairment in conjunction with the asset
176 / 266
Annual Report 2023
group or combination of asset groups to which it relates.
If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value,
the asset impairment reserve shall be recognized according to the difference and recorded in profit and
loss of the current period.
28. Long-term prepaid expense
√ Applicable □ Not applicable
Long-term prepaid expenses are accounted for all expenses that have been paid and have an
amortization period of more than one year (excluding one year). The long-term prepaid expenses are
accounted for according to the actual amount incurred and are amortized averagely over the benefit period
or the specified period. If the long-term deferred expenses item cannot bring benefit in the subsequent
accounting period, the amortized value of the item that has not been amortized will be transferred to the
profit or loss for the current period.
29. Contract liabilities
√ Applicable □ Not applicable
The Company presented contract assets or contract liabilities on the balance sheet in accordance with
the relationship of performance obligations and customer payment. The Company will set off the contract
assets and contract liabilities under the same contract and present them in net amount.
The right of the Company to receive consideration from its customers unconditionally (i.e. only
depending on the passage of time) is presented as receivables, and the right to receive consideration for
goods transferred to its customers (depending on factors other than the passage of time) is presented as
contract assets.
The obligations of transferring goods to customers as a result of the consideration that the Company
had received or shall receive from customers were presented as contract liabilities.
30. Employee remuneration
(1) Accounting treatment methods of short-term remuneration
√ Applicable □ Not applicable
Within the accounting period when employees provide service, the actual short-term remuneration
shall be recognized as liabilities and be recorded in profit and loss of the current period or relevant asset
costs.
(2) Accounting treatment method for post-employment benefits
√ Applicable □ Not applicable
The Company classifies post-employment benefit plans into the defined contribution plan and the
defined benefit plan.
(1) During the accounting period in which the employees provide services to the Company, the
177 / 266
Annual Report 2023
amount to be contributed as calculated according to the defined contribution plan is recognized as a
liability and recorded in the profit or loss for the current period or the related asset costs.
(2) The accounting handling of the defined benefit plan usually includes the following steps:
1) Based on the projected unit credit method, related demographic variables and financial variables
are estimated by using unbiased and mutually compatible actuarial assumptions, the obligations under the
defined benefit plan are measured, and the periods to which relevant obligations are attributed are
determined. Meanwhile, the Company will discount the obligations incurred from a defined benefit plan,
to determine present value of defined benefit plan and current service cost.
2) The deficit or surplus formed by present value of obligations to the defined benefit plan minus the
fair value of assets of the defined benefit plans is recognized as one net liabilities or net profits of the
defined benefit plans. If the defined benefit plans have a surplus, the Company shall measure the net profit
of the defined benefit plans according to whichever is lower between the surplus and upper limit on the
assets of the defined benefit plans.
3) At the end of the period, the employee compensation cost incurred in the defined benefit plan is
recognized as service cost, net interest arising from the net liabilities and net assets of the defined benefit
plan, and changes in the net liabilities or net assets of the remeasured defined benefit plan. Of which, the
net interest arising from the net liabilities or net assets of the defined benefit plan is recorded in profit and
loss of the current period or related asset cost, and changes in the net liabilities or net assets of the
remeasured defined benefit plan are recorded in other comprehensive income, and is not written-back to
profits and losses in subsequent accounting periods. But these amounts recognized in other comprehensive
income can be transferred within the scope of equity.
(3). Accounting treatment method for dismissal benefits
√ Applicable □ Not applicable
If the Company provides the employee with dismissal benefits, the Company shall recognize the
employee remuneration liabilities and record them in profit or loss for the current period on the following
dates (whichever is earlier): (1) the date when the Company may not unilaterally withdraw dismissal
benefits provided due to termination of labor relationship plans or layoff proposals; (2) the date when the
Company recognizes costs or expenses relating to the restructure of payments of dismissal benefits.
(4). Accounting treatment method for other long-term employee benefits
√ Applicable □ Not applicable
If other long-term benefits provided by the Company to employees meet the conditions of the defined
contribution plan, accounting treatment shall be carried out according to the relevant provisions of defined
contribution plan. Except for that, the other long-term benefits shall be subject to the accounting handling
according to the defined benefit plan. To simplify the related accounting treatment, employee
compensation cost incurred in the defined benefit plan is recognized as service costs. Net interests of net
liabilities or net assets of other long-term employee benefits, as well as the total net amount of changes
178 / 266
Annual Report 2023
caused by re-measurement of net liabilities or net assets of other long-term employee benefits, will be
recorded in profit and loss of the current period or the related asset costs.
31. Provisions
□ Applicable √ Not applicable
32. Share-based payment
√ Applicable □ Not applicable
1. Category of share-based payment
The Company's share-based payment includes equity-settled share-based payment and cash-settled
share-based payment.
2. Relevant accounting processing for the implementation, modification, and termination of share-
based payment plans
(1) Equity-settled share-based payment
For an equity-settled share-based payment in return for services of employees, if the right can be
exercised immediately after the grant, the fair value of the equity instruments shall, on the grant date, be
recorded in the relevant costs or expenses and the capital reserve shall be adjusted accordingly. For an
equity-settled share-based payment in return for employee services, if the right cannot be exercised only
after completing the service during the vesting period or meeting the prescribed performance conditions,
then on each balance sheet date within the vesting period, the services acquired in the current period shall,
based on the best estimate of the number of vested equity instruments, be recorded in the relevant costs or
expenses at the fair value of the equities instruments on the grant date, and the capital reserve shall be
increased accordingly.
For an equity-settled share-based payment in return for the service of any other party, if the fair value
of the service of any other party can be reliably measured, it shall be measured at the fair value of the
service of any other party on the acquisition date; if the fair value of the service of any other party can not
be reliably measured, but the fair value of the equity instruments can be reliably measured, it shall be
measured at the fair value of the equity instruments on the acquisition date and recorded in the relevant
costs or expenses, and the owner's equity shall be increased correspondingly.
(2) Cash-settled share payment
For a cash-settled share-based payment in return for services of employees, if the right can be
exercised immediately after the grant, the fair value of liabilities assumed by the Company shall, on the
grant date, be recorded in the relevant costs or expenses and the liabilities shall be increased accordingly.
For a cash-settled share-based payment, if the right cannot be exercised only after completing the service
during the vesting period or meeting the prescribed performance conditions, on each balance sheet date
within the vesting period, the services acquired in the current period shall, based on the best estimate of
the information about the vesting right, be recorded in the relevant costs or expenses and the corresponding
liabilities at the fair value of the liabilities assumed by the Company.
179 / 266
Annual Report 2023
(3) Modification and termination of share-based payment plans
If the modification increases the fair value of the granted equity instruments, the Company shall
recognize the increase of the services acquired according to the increase of the fair value of the equity
instruments. If the modification increases the number of the granted equity instruments, the Company
shall recognize the increased fair value of equity instruments as the increase of the services acquired. If
the Company modifies the vesting conditions in a way that is favorable to employees, the Company shall
consider the modified vesting conditions when processing vesting conditions.
If the modification reduces the fair value of the granted equity instruments, the Company shall
continue to recognize the amount of the service acquired based on the fair value of the equity instruments
on the grant date, and shall not consider the decrease of the fair value of the equity instruments. If the
modification reduces the number of equity instruments, the Company shall process equity instruments by
reducing some of them as the cancellation of the granted equity instruments. If the vesting conditions are
modified in a way that is unfavorable to employees, the Company shall not consider the modified vesting
conditions when processing vesting conditions.
If the Company cancels the granted equity instruments or settles the granted equity instruments (not
including those canceled due to failure to meet vesting conditions) during the vesting period, the
cancellation or settlement shall be processed as the vested right and the amount to be recognized within
the remaining vesting period originally shall be recognized immediately.
33. Preference shares, perpetual bonds and other financial instruments
□ Applicable √ Not applicable
34. Revenue
(1). Accounting policy for recognition and measurement of revenue by type of business
√ Applicable □ Not applicable
1. Principles of revenue recognition
On the commencement date of a contract, the Company shall assess the contract, identify each single
performance obligation in the contract, and determine that each single performance obligation is satisfied
whether within a certain period of time or at a certain point in time.
When one of the following conditions is met, it belongs to fulfilling the performance obligation within
a certain period of time, otherwise, it belongs to fulfilling the performance obligation at a certain point in
time: (1) The customer obtains and consumes the economic benefits brought by the Company's
performance while the Company performs the obligation; (2) The customer can control the goods under
construction during the performance of the Company; (3) The goods produced during the performance of
the Company have irreplaceable uses, and the Company has the right to collect amount for the cumulative
performance completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company recognizes
the revenue according to the performance progress within that period of time. When the performance
180 / 266
Annual Report 2023
progress cannot be reasonably determined, if the cost incurred is expected to be compensated, the revenue
shall be recognized according to the amount of the cost incurred until the performance progress can be
reasonably determined. For performance obligations performed at a certain point in time, revenue is
recognized at the time when the customer obtains control over related goods or services. To decide whether
the customer has obtained the control over goods, the Company takes into account the following signs: (1)
the enterprise has the present right to collection for the goods, meaning the customer bears the present
obligation to payment for the goods; (2) the enterprise has passed the legal title to the goods to the customer,
meaning the customer has had the legal title to the goods; (3) the enterprise has transferred the physical
possession of the goods to the customer, meaning the customer has had the physical possession of the
goods; (4) the enterprise has transferred the major risks and remunerations concerning the title to the goods
to the customer, meaning the customer has obtained the major risks and remunerations concerning the title
to the goods; (5) the customer has accepted the goods; (6) other signs to show that the customer has
obtained the control over the goods.
2. Principles of revenue measurement
(1) The Company measures revenue on the basis of the transaction price allocated to each
performance obligation. Transaction price is the amount of consideration that the Company is expected to
be entitled to receive for transferring goods or services to customers, excluding the amount received on
behalf of third parties and the amount expected to be refunded to customers.
(2) If there is variable consideration in a contract, the Company shall determine the best estimate of
the variable consideration according to the expected value or the most likely amount, but the transaction
price including the variable consideration shall not exceed the amount that the cumulative recognized
income will most likely not be significantly written-back when the relevant uncertainty is eliminated.
(3) If there is a significant financing component in a contract, the Company shall determine the
transaction price according to the amount payable in cash when the customer assumes control of the goods
or services. The difference between the transaction price and the contract consideration shall be amortized
by the effective interest rate method during the contract period.
(4) If a contract contains two or more performance obligations, the Company shall allocate the
transaction price to each single performance obligation according to the relative proportion of the single
selling price of the goods promised by each single performance obligation on the commencement date of
the contract.
3. Specific methods for revenue recognition
The Company mainly sells adaptors, wall switches and sockets, LED lighting and digital accessories.
(1) The specific time points for revenue recognition of various domestic sales methods of the
Company
1) Distribution method: Revenue is recognized when the goods are sent to the designated place and
the distributor receives the goods.
2) Direct sales: For direct sales by supermarkets and e-commerce, when the customer receives the
goods and publishes the information on the quantity and amount of goods received on its supplier platform,
181 / 266
Annual Report 2023
the Company recognizes the revenue when it completes the reconciliation. For sales by opening an online
shop on the e-commerce platform, the Company recognizes the revenue when the customer receives the
goods and confirms such receipt on the e-commerce platform. For offline direct sales to customers in
Shanghai, etc., the Company recognizes the revenue when the goods are delivered to the customer.
3) Consignment method: The Company recognizes the revenue when receiving the consignment list.
(2) The Company recognizes its revenue when it has completed the customs declaration formalities
and obtained the bill of lading.
(2) Different recognition and measurement methods for revenue for different business models
adopted in the same type of business
□ Applicable √ Not applicable
35. Contract costs
√ Applicable □ Not applicable
Assets related to contract costs include costs of obtaining a contract and costs to fulfill a contract.
The Company recognizes as an asset the incremental costs of obtaining a contract if it expects to
recover those costs. The costs of obtaining a contract shall be included in profit or loss if the asset's
amortization period is one year or less.
If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories,
fixed assets or intangible assets, etc., the Company shall recognize the costs to fulfill a contract as an asset
if all the following criteria are satisfied:
1. The costs relate directly to a contract or to an anticipated contract, including direct labour, direct
materials, manufacturing overhead cost (or a similar cost), costs that are explicitly chargeable to the
customer under the contract, and other costs that are only related to the contract.
2. The costs enhance the resources of the Company that will be used in satisfying performance
obligations in the future.
3. The costs are expected to be recovered.
An asset related to contract costs shall be amortized on a systematic basis that is consistent with
related goods or services and included in profit or loss.
The Company shall make provision for impairment and recognize it as impairment losses on assets
to the extent that the carrying amount of an asset related to the contract costs exceeds the remaining amount
of consideration that the Company expects to receive in exchange for the goods or services to which the
asset relates less the costs expected to be incurred. If the remaining amount of consideration that the
Company expects to receive in exchange for the goods or services to which the asset relates minus the
costs expected to be incurred is higher than the carrying amount of the asset due to the subsequent changes
in the factors of impairment in previous periods, the asset impairment provisions set aside should be
reversed and included in profit and loss of the current period. However, the carrying amount of the asset
upon the reversal should not exceed the carrying amount of the asset on the reversal date, supposing that
impairment provisions are not set aside.
182 / 266
Annual Report 2023
36. Government grants
√ Applicable □ Not applicable
1. Government grants are recognized when all the criteria below are satisfied: (1) The Company is
able to satisfy all the conditions attached to such government grant; (2) The Company is able to receive
the grants from the government. Government grants were measured at the amount received or receivable
if they were monetary assets. Non-monetary government grants were measured at fair value; if the fair
value could not be reliably obtained, they were measured at the nominal amount.
2. Judgment basis and accounting treatment method for government grants related to assets
Government documents stipulate that government grants used to purchase, build or otherwise form
long-term assets are classified as government grants related to assets. If the government documents
concerning a government grant do not specify the target of the grant, it should be determined based on the
basic conditions that must be met in order to receive the grant, and government grants which are
conditional upon a long-term asset acquired, constructed or otherwise formed are classified as asset-related
government grants. Government grants related to assets are used to offset carrying value of assets or are
recognized as deferred income. If recognized as deferred income, government grants related to assets shall
be recorded in the profit and loss in stages in a reasonable and systematic manner within the useful life of
the relevant asset. Government grants measured at nominal amount were directly recognized as profit or
loss for the current period. If the underlying assets were sold, transferred, scrapped, or damaged before
the end of the useful life, the unallocated balance of the relevant deferred income was transferred to the
profit or loss for the period of assets disposal.
3. Judgment basis and accounting treatment method for government grants related to income
Government grants other than government grants related to assets were classified as government
grants related to income. For government grants, including both asset-related parts and income-related
parts that are difficult to be distinguished, overall government grants shall be classified as government
grants related to income. Government grants related to income shall be recognized as deferred income if
they are used to compensate related future expenses or losses and recorded in profit and loss of the current
period during the period when relevant expenses are recognized, or shall be recognized as current profit
and loss or offset the related costs if they are used to compensate related expenses or losses incurred.
4. Government grants related to daily activities are recognized as other income or used to offset
relevant costs according to the substance of business activities. Government grants that are not related to
daily activities are recognized as non-operating income and expenses.
5. Accounting method for interest subsidy on policy prime loans
(1) If the fiscal system allocated the funds of interest subsidies to the lending bank, and the lending
bank provided loans to the Company at a policy prime interest rate, the actual loan amount received by
the Company was recognised as the carrying value of the loan, and the relevant borrowing costs were
calculated in accordance with the loan principal and the policy prime interest rate.
(2) If the fiscal system allocated the funds of interest subsidies to the Company directly, the Company
183 / 266
Annual Report 2023
reduced the corresponding interest subsidies against relevant borrowing costs.
37. Deferred income tax assets/Deferred income tax liabilities
√ Applicable □ Not applicable
1. Based on the difference between the carrying value of assets and liabilities and their tax bases (the
difference between the tax base and the carrying value, where tax bases of items that are not recognized
as assets and liabilities can be determined according to the tax law), deferred income tax assets or deferred
income tax liabilities are recognized in accordance with the applicable tax rates during the expected period
in which such assets are to be recovered or such liabilities are to be settled.
2. Deferred income tax assets shall be recognized to the extent of the amount of the taxable income
that is likely to be obtained and deducted from deductible temporary difference. On the balance sheet date,
if there is conclusive evidence that it is probable that sufficient taxable income will be available to offset
the deductible temporary differences in the future, the deferred income tax assets that have not been
recognized in the previous accounting period shall be recognized.
3. The Company reviews carrying values of deferred tax assets on the balance sheet date. If it is
determined that the Company is not Period likely to obtain adequate taxable income to offset benefits from
deferred tax assets, the carrying values of deferred tax assets are written down. Such write-downs are
reversed when it becomes probable that sufficient taxable income should be available.
4. The current income tax and deferred income tax of the Company shall be recorded in profit and
loss of the current period as income tax expenses or incomes, excluding the income taxes incurred in the
following circumstances: (1) Business combination; (2) Transactions or events directly recognized in the
owner's equity.
5. Deferred income tax assets and deferred income tax liabilities are presented in net amount after
offsetting when the following conditions are simultaneously met: (1) there is a legal right to settle current
income tax assets and current income tax liabilities on a net basis; (2) the deferred income tax assets and
deferred income tax liabilities are related to income taxes levied by the same tax authority on the same
taxable entity or are related to different taxable entities, but are not expected to reverse in the future in
each of the periods in which the deferred income tax assets and deferred income tax liabilities are material;
and the taxable entities involved intend to settle current income tax assets and current income tax liabilities
on a net basis. However, in each future period in which the deferred tax assets and deferred tax liabilities
are reversed, the taxable entity involved intends to either settle the current income tax assets and current
income tax liabilities on a net basis or to acquire the assets and settle the liabilities at the same time.
38. Leases
√ Applicable □ Not applicable
1. The Company as the leasee
On the beginning date of the lease term, the Company will recognize the lease with a lease term not
exceeding 12 months and excluding the purchase option as a short-term lease. Leases with lower value
184 / 266
Annual Report 2023
when a single leased asset is a brand-new asset are identified as low-value asset leases. If the Company
sublets or expects to sublet the leased assets, the original lease shall not be deemed as a low-value asset
lease.
The Company records the payments of short-term and low-value asset leases incurred during each
period of the lease term in the relevant asset costs or the profit or loss for the current period by the straight-
line method/workload method.
The Company will recognize right-of-use assets and lease liabilities on the inception date of the lease
term, excluding the above short-term and low-value asset leases.
(1) Right-of-use assets
Right-of-use assets are initially measured at costs, including: 1) The initial measurement amount of
lease liabilities; 2) If there is a lease incentive for the lease payment paid on or before the start date of the
lease term, the relevant amount of the lease incentive already enjoyed shall be deducted; 3) Initial direct
expenses incurred by the lessee; 4) The expected cost to be borne by the lessee in order to dismantle and
remove the assets leased, restore original state of the place where the assets leased are in, or restore the
assets leased to the state stipulated in the lease terms.
The Company depreciates right-of-use assets on a straight-line basis. If it is reasonably certain that
ownership of the leased asset(s) will be obtained at the end of the lease term, the Company depreciates the
leased asset(s) over its/their remaining service life. If it is not reasonably certain that the ownership of the
leasehold property will be obtained at the end of the lease term, the Company will depreciate the leased
asset(s) over the lease term or the remaining service life, whichever is shorter.
(2) Lease liabilities
On the start date of the lease term, the Company recognizes the present value of the outstanding lease
payments as lease liabilities. The Company regards the interest rate implicit in lease as the rate of discount
when calculating the present value of the lease payment. The incremental lending rate of the lessee will
be deemed as the rate of discount, if the interest rate implicit in lease cannot be confirmed. The difference
between the lease payment and its present value is regarded as an unrecognized financing expense. Interest
expense is recognized at the discount rate of the present value of the recognized lease payment during
each period of the lease term and is recorded in the profits and losses of the current period. Variable lease
payments that are not recorded in the lease liabilities measurement are recorded in profits and losses of
the current period when they are actually incurred.
After the start of the lease term, in case of any changes in actual fixed payment amount, the expected
payable amount of the guarantee residual value, the index or ratio used to determine the lease payment
amount, and the evaluation result or actual exercise of the purchase option, renewal option or termination
option, the Company will re-calculate the lease obligation using the present value of the changed lease
payment, and adjusts the carrying value of right-of-use assets accordingly. If the carrying value of right-
of-use assets has been reduced to zero, while lease liabilities still needs to be further reduced, the remaining
amount will be recorded in the profits and losses of the current period.
185 / 266
Annual Report 2023
Judgment criteria and accounting treatments for simplified treatments for short-term leases and
leases of low-value assets as lessee
□ Applicable √ Not applicable
Classification criteria and accounting treatments for leases as lessor
√ Applicable □ Not applicable
2. The Company as lessor
On the start date of the lease term, the Company divides the lease that substantially transfers almost
all risks and rewards related to the ownership of the leased assets into finance leases, except for operating
leases.
(1) Operating leases
The Company recognizes the lease payments receivable as rental earnings in each period within the
lease term on a straight-line basis. The initial direct costs related to the operating lease are capitalized,
amortized within the lease term on the same basis as the recognition of rental earnings, and included in
the profit or loss for the current period. Variable lease payments obtained by the Company in relation to
operating leases that are not included in the lease receivable are included in the profit or loss for the current
period when they are actually incurred.
(2) Finance leases
At the commencement date, the Company recognises the finance lease payment receivable based on
the net investment in the lease (sum of the present value of unguaranteed residual value and lease receipts
that are not received at the commencement date, discounted by the interest rate implicit in the lease), and
derecognises assets held under the finance lease. The Company calculates and recognises interest income
using the interest rate implicit in the lease over the lease term.
Variable lease payments not included in the measurement of the net investment in the lease are
charged as profit or loss in the periods in which they are incurred.
3. Sale and leaseback
(1) The Company as the lessee
The Company assesses whether the asset transfer in a sale and leaseback transaction is a sale in
accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 14 - Income.
If the asset transfer in a sale and leaseback transaction is a sale, the Company measures the right-of-
use assets formed by the sale and leaseback based on the portion of the original asset's carrying value that
is related to the use right acquired by the leaseback, and recognises related gains or losses only for the
right transferred to the lessor.
If the asset transfer in a sale and leaseback transaction is not a sale, the Company continues to
recognise the transferred asset and at the same time recognises a financial liability equivalent to the transfer
income, and conducts corresponding accounting treatment for the financial liability in accordance with
186 / 266
Annual Report 2023
the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments.
(2) The Company as the lessor
The Company assesses whether the asset transfer in a sale and leaseback transaction is a sale in
accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 14 - Income.
If the asset transfer in a sale and leaseback transaction is a sale, the Company applies other accounting
standards for business enterprises to the accounting treatment for asset purchase, and conducts
corresponding accounting treatment for asset lease in accordance with the Accounting Standard for
Business Enterprises No. 21 - Leases.
If the asset transfer in a sale and leaseback transaction is not a sale, the Company does not recognise
the transferred asset, but recognises a financial asset equivalent to the transfer income, and conducts
corresponding accounting treatment for the financial asset in accordance with the Accounting Standards
for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
39. Other important accounting policies and accounting estimation
√ Applicable □ Not applicable
1. Basis for applying hedge accounting, and accounting treatments
(1) The hedging relationship is classified into fair value hedge, cash flow hedge and hedge of net
investment in foreign operations.
(2) For hedging that meets the following conditions, hedging accounting methods are used to deal
with it: 1) The hedging relationship is only composed of qualified hedging instruments and hedged
instruments; 2) At the beginning of hedging, the Company formally designated hedging instruments and
hedged items, and prepared written documents on hedging relationship and risk management strategies
and risk management objectives of the Company engaged in hedging; 3) The hedging relationship meets
the requirements of hedging effectiveness.
When the hedging meets the following conditions at the same time, the Company determines that the
hedging relationship meets the requirements of hedging effectiveness: 1) There is an economic
relationship between the hedged item and the hedging instrument; 2) Credit risk does not play a dominant
role in the value changes caused by the economic relationship between hedged items and hedging
instruments; 3) The hedging ratio of the hedging relationship is equal to the ratio of the number of hedged
items actually hedged by the Company to the actual number of hedging instruments, but does not reflect
the imbalance of the relative weights of hedged items and hedging instruments.
The Company continuously evaluates whether the hedging relationship meets the hedging
effectiveness requirements on and after the hedging start date. If the hedging relationship no longer meets
the requirements of hedging effectiveness due to the hedging ratio, but the risk management objectives of
the designated hedging relationship have not changed, the Company shall rebalance the hedging
relationship.
(3) Hedging accounting treatment
1) Fair value hedge
① Gain or loss arising from a hedging instrument shall be recorded in profit and loss of the current
period. If the hedging instrument is used to hedge a non-trading equity instrument (or a component thereof)
187 / 266
Annual Report 2023
that is chosen to be measured at fair value and whose changes are included in other comprehensive income,
the gains or losses arising from the hedging instrument are included in other comprehensive income.
② Gain or loss of a hedged item arising from hedged risk exposure shall be recorded in profit and
loss of the current period and meanwhile the carrying value of the hedged item not measured at fair value
shall be adjusted. If a hedged item is classified as financial assets (or a component thereof) that are
measured at fair value and whose changes are recorded in other comprehensive income according to
Article 18 of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of
Financial Instruments, its gains or losses due to hedged risk exposure are recorded in profit and loss of the
current period, and its carrying value has been measured at fair value and will not be adjusted. If the
hedged item is a non-trading equity instrument investment (or a component thereof) that the Company
chooses to measure at fair value and its changes are recorded in other comprehensive income, the gains or
losses arising from the hedged risk exposure are recorded in other comprehensive income, and its carrying
value has been measured at fair value and will not be adjusted.
If a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative
changes in the fair value arising from hedged risk after the designation of hedging relationship shall be
recognized as an asset or liability, and the related gain or loss shall be recorded in profit and loss of the
respective periods. In case of acquiring assets or bearing liabilities for performing a firm commitment, the
initially recognized amount of the assets or liabilities shall be adjusted to include the cumulative changes
in the fair value of the recognized hedged item.
If a hedged item is a financial instrument (or a component thereof) at measured amortized cost, the
adjustment to the carrying value of the hedged item shall be amortized based on the actual interest rate
recalculated on the commencement date of amortization and recorded in profit and loss of the current
period. If a hedged item is classified as financial assets (or a component thereof) that are measured at fair
value and whose changes are recorded in other comprehensive income according to Article 18 of
Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial
Instruments, cumulative recognized hedging gains or losses are amortized in the same manner and
recorded in profit and loss of the current period, but the carrying value of financial assets (or their
components) is not adjusted.
2) Cash flow hedge
① The part of the gain or loss of the hedging instrument that belongs to the effective hedging is
included in the other comprehensive income as a reserve for cash flow hedges, and the invalid part is
included in profit and loss of the current period. The amount of reserve for cash flow hedges is recognized
as the absolute amount of the lower of the following two items: A. The cumulative gains or losses of
hedging instruments since hedging; B. The cumulative change in the present value of the estimated future
cash flows of the hedged item since hedging.
② If a hedged item is a forecast transaction and the forecast transaction leads the Company to
subsequently recognize a non-financial asset or non-financial liability, or the forecast transaction of the
non-financial asset or non-financial liability forms a recognized commitment to which fair value hedge
accounting is applicable, the original amount of reserve for cash flow hedges recognized in other
comprehensive income shall be transferred out and recorded in the initially recognized amount of such
non-financial asset or non-financial liability.
188 / 266
Annual Report 2023
③ For other cash flow hedges, the amount of reserve for cash flow hedges originally included in
other comprehensive income is transferred out during the same period when the hedged expected
transaction affects the profit and loss, and is recorded in the profit and loss of the current profit.
3) Net investment hedge in a foreign operation
The part of the gains or losses formed by hedging instruments that belong to effective hedging is
recognized as other comprehensive income, and when disposing of foreign operations, it is transferred out
and recorded in the profit and loss of the current profit. The part of the gains or losses resulting from
hedging instruments that belong to invalid hedging shall be recorded in profit and loss of the current period.
40. Changes in important accounting policies and accounting estimation
(1) Changes in important accounting policy
√ Applicable □ Not applicable
Unit: RMB
Financial
statement line
Contents of and reasons for changes in
item which is Amount of impact
accounting policy
significantly
impacted
Deferred
The Ministry of Finance of China issued in
income tax 1,423,636.74
November 2022 Interpretation No. 16, which
assets
states that “the accounting treatments of initial
Deferred
recognition exemption are not applicable to
income tax 1,513,382.32
deferred income tax related to assets and
liabilities
liabilities arising from individual transactions”.
Retained
The Company has adjusted its accounting -89,745.58
earnings
policies according to Interpretation No. 16 and
adopted the adjustments since 1 January 2023. Income tax
-90,225.33
expense
Other notes:
This change in accounting policy is a reasonable change made by the Company in accordance with the
relevant regulations and requirements of the Ministry of Finance and is in compliance with relevant laws
and regulations. The implementation of the changed accounting policies can objectively and fairly reflect
the financial position and operating results of the Company. This change in accounting policy will not
have any material impact on the Company's financial position, operating results or cash flows for the
current period, and will not be detrimental to the interests of the Company and its minority shareholders.
(2) Changes in important accounting estimates
□ Applicable √ Not applicable
(3) Adjustments to the financial statements at the beginning of the year of implementation of the
new accounting standards or interpretations of the standards for the first time since 2023
□ Applicable √ Not applicable
41. Other information
□ Applicable √ Not applicable
189 / 266
Annual Report 2023
VI Taxation
1. Main taxes and tax rates
Major types of taxes and tax rates
√ Applicable □ Not applicable
Tax Tax basis Tax rate
Revenue from commodity sales and taxable services
calculated according to the tax law are the basic
calculation of output tax. After deducting the 13%, 9%, 6%, 5% [Note
VAT
amount of input tax which is allowed to be deducted 1]
in the current period, the difference is the VAT
payable.
Ad valorem tax: levied at 1.2% of the remaining
value after deducting 30% from the original value of
Real estate tax 1.2%, 12%
the housing property; Tax levied from rent: levied at
12% of the rental income.
Urban
maintenance and Turnover tax paid 5%, 7% [Note 2]
construction tax
Educational fee Turnover tax paid 3%
Local
Turnover tax paid By 2%
educational fee
Enterprise 25%, 15%, 8.25%,
Amount of taxable income
income tax 15.825%
[Note 1] The tax of the Company's main products is levied at the tax rate of 13%, and VAT of interest
income is levied at the tax rate of 6%; VAT of the real estate rental income of subsidiaries Banmen Electric
Appliance and Shanghai Goneo is levied at a tax rate of 5% according to the simple method; VAT of
Lingbo Goneo's real estate rental income is partly levied at a tax rate of 9% and partly at 5% according to
the simple method.
[Note 2] Electric Sales is levied at a tax rate of 7%, and other companies at a tax rate of 5%
Explanation of disclosure if different income tax rates apply to different corporate taxpayers
√ Applicable □ Not applicable
Name of taxpayer Income tax rate (%)
The Company 15%
Ningbo Goneo 15%
Goneo Photoelectric 15%
Goneo Digital 15%
Domestic Electrical Appliance 15%
Goneo Low Voltage 15%
Intelligent Technology 15%
Dalitek 15%
Goneo HK 8.25%
Goneo Germany 15.825%
Other taxpayers except the above 25%
2. Tax concessions
1. According to the Notice on Publishing the List of the First Batch of High-tech Enterprises in
Ningbo in 2021 issued by Beilun District Science and Technology Bureau of Ningbo on 19 January 2022,
Ningbo Goneo and Goneo Photoelectric were recognized as high-tech enterprises in Ningbo in 2020, and
190 / 266
Annual Report 2023
their qualification is valid for 3 years. From 2021 to 2023, Ningbo Goneo and Goneo Photoelectric enjoy
a preferential corporate income tax rate of 15%.
2. According to the Notice on the Filing of the First Batch of High-tech Enterprises Identified by
Ningbo City's Accreditation Authority in 2022 issued by the Office of the National Leading Group for the
Identification and Management of High-tech Enterprises on 30 December 2022, the Company and
Domestic Electrical Appliance were identified as high-tech enterprises in Ningbo in 2022, with a valid
term of 3 years. Therefore, from 2022 to 2024, the Company and Domestic Electrical Appliance enjoy a
preferential corporate income tax rate of 15%.
3. According to the Notice on Publishing the List of the Third Batch of High-tech Enterprises-to-Be
in Shanghai in 2022 (H.G.Q.R.B [2022] No. 021) issued by the Shanghai High-tech Enterprise
Recognition Steering Group on 14 November 2022, Dalitek was recognized as a high-tech enterprise in
Shanghai in 2022. From 2022 to 2024, Dalitek enjoys a preferential corporate income tax rate of 15%.
4. According to the Public Notice on the First Batch of High-tech Enterprises Identified and Reported
by the Ningbo Municipal Accreditation Organisation for Filing in 2023 issued by the Office of the National
Leading Group for the Identification and Management of High-tech Enterprises on 8 December 2023,
Intelligent Technology and Goneo Low Voltage were recognized as High-tech Enterprises in Ningbo in
2023, and Goneo Digital passed the High-tech Enterprise review, with a valid period of three years. As
such, from 2023 to 2025, Intelligent Technology, Goneo Low Voltage, and Goneo Digital enjoy a
preferential corporate income tax rate of 15%.
VII Notes to the Consolidated Financial Statements
1. Monetary assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash on hand 14,467.69 34,167.84
Bank deposits 4,548,290,085.14 4,435,294,692.17
Other monetary assets 100,324,302.30 55,930,602.55
Interest receivable on
95,085,570.53 120,706,706.98
term deposits
Total 4,743,714,425.66 4,611,966,169.54
Of which: Total
amount deposited 23,017,044.95 174,605.10
overseas
2. Held-for-trading financial assets
√Applicable□Not applicable
Unit: RMB
Reasons and basis
Item Closing balance Opening balance
for recognition
Financial assets at fair value
9,727,000,000.00 6,949,000,000.00 /
through profit or loss
Of which:
Banking WM products 630,000,000.00 1,919,000,000.00 /
Trust product 4,617,000,000.00 1,260,000,000.00 /
191 / 266
Annual Report 2023
Asset management
4,180,000,000.00 3,420,000,000.00 /
plan
Securities return
300,000,000.00 350,000,000.00 /
voucher
Total 9,727,000,000.00 6,949,000,000.00 /
Other notes:
√Applicable□Not applicable
(1) Description of held-for-trading financial assets with restrictions on the realisation
The closing balance of held-for-trading financial assets includes closed-end WM products worth
RMB8,277 million.
(2) Details of banking WM products
Bank Closing amount Opening amount
China Everbright Bank Co., Ltd., Ningbo Branch 300,000,000.00 300,000,000.00
Bank of Ningbo Co., Ltd., Cixi Sub-branch 200,000,000.00 815,000,000.00
Industrial Bank Co., Ltd., Ningbo Cixi Sub-branch 110,000,000.00
China Minsheng Bank Co., Ltd., Ningbo Cixi Sub-
20,000,000.00 298,000,000.00
branch
Bank of China Limited, Cixi Guancheng Sub-branch 300,000,000.00
Bank of Ningbo Co., Ltd., Cixi Central District Sub-
150,000,000.00
branch
China Merchants Bank Co., Ltd., Ningbo Hangzhou
30,000,000.00
Bay New Area Sub-branch
Agricultural Bank of China Limited, Cixi Shiqiao Sub-
26,000,000.00
branch
Subtotal 630,000,000.00 1,919,000,000.00
(3) Details of trust products
Trust company Closing amount Opening amount
SDIC Taikang Trust Co., Ltd. 1,367,000,000.00 180,000,000.00
COFCO Trust Co., Ltd. 1,300,000,000.00 50,000,000.00
Lujiazui International Trust Co., Ltd. 650,000,000.00 700,000,000.00
Minmetals International Trust Co., Ltd. 450,000,000.00
Huaneng Guicheng Trust Co., Ltd. 300,000,000.00 300,000,000.00
China Railway Trust Co., Ltd. 250,000,000.00
Shaanxi International Trust Co., Ltd. 200,000,000.00
China Fortune International Trust Co., Ltd. 50,000,000.00
Everbright Xinglong Trust Co., Ltd. 50,000,000.00
Shanghai International Trust Co., Ltd. 30,000,000.00
192 / 266
Annual Report 2023
Subtotal 4,617,000,000.00 1,260,000,000.00
(4) Asset management plan
Securities firm Closing amount Opening amount
Shanghai Everbright Securities Asset Management
1,800,000,000.00 1,720,000,000.00
Co., Ltd.
Founder Securities Co., Ltd. 800,000,000.00 300,000,000.00
Huafu Securities Co., Ltd. 550,000,000.00 200,000,000.00
Soochow Securities Co., Ltd. 530,000,000.00
Southwest Securities Co., Ltd. 350,000,000.00
Shanghai Guotai Junan Securities Asset Management
100,000,000.00
Co., Ltd.
Changjiang Securities (Shanghai) Asset Management
50,000,000.00
Co., Ltd.
Shanghai Haitong Securities Asset Management Co.,
1,000,000,000.00
Ltd.
Shanghai Yongxing Securities Asset Management
200,000,000.00
Co., Ltd.
Subtotal 4,180,000,000.00 3,420,000,000.00
(5) Securities return voucher
Securities firm Closing amount Opening amount
Founder Securities Co., Ltd. 100,000,000.00
Industrial Securities Co., Ltd. 50,000,000.00 50,000,000.00
Southwest Securities Co., Ltd. 50,000,000.00
Sinolink Securities Co., Ltd. 50,000,000.00 50,000,000.00
Caitong Securities Co., Ltd. 50,000,000.00 130,000,000.00
Everbright Securities Co., Ltd. 120,000,000.00
Subtotal 300,000,000.00 350,000,000.00
3. Derivative financial assets
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Hedge instruments - commodity future
8,263,755.00 643,100.00
contract
Total 8,263,755.00 643,100.00
Other notes:
193 / 266
Annual Report 2023
The Company hedged raw materials such as copper and plastic particles purchased, performed
accounting treatment as cash flow hedges, and recorded the profit on the book in the derivative financial
assets.
4. Notes receivable
(1) Notes receivable listed by category
□Applicable√Not applicable
(2) Breakdown by method of establishing bad debt provisions
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Gross amount Bad debt provision Gross amount Bad debt provision
Provisi Carry Provisi Carry
Type on ing on ing
Percent amou Percent amou
Amount Amount percent Amount Amount percent
age (%) nt age (%) nt
age age
(%) (%)
Bad
debt
provisi
on
establis 3,712,82 3,712,82 3,712,82 3,712,82
100.00 100.00 100.00 100.00
hed on 9.75 9.75 9.75 9.75
an
individ
ual
basis
Of which:
Bank
accepta
nce
notes
Trade
accepta 3,712,82 3,712,82 3,712,82 3,712,82
100.00 100.00 100.00 100.00
nce 9.75 9.75 9.75 9.75
notes
Bad
debt
provisi
on
establis
hed on
a
groupin
g basis
Of which:
Bank
accepta
nce
notes
Trade
accepta
nce
notes
3,712,82 3,712,82 3,712,82 3,712,82
Total 100.00 100.00 100.00 100.00
9.75 9.75 9.75 9.75
Bad debt provision established on an individual basis:
√Applicable□Not applicable
Unit: RMB
Name Closing balance
194 / 266
Annual Report 2023
Bad debt Provision Reason for
Gross amount
provision percentage (%) provision
Significant
Sunac Real Estate
3,712,829.75 3,712,829.75 100.00 impairment risk
Group Co., Ltd.
expected
Total 3,712,829.75 3,712,829.75 100.00 /
Notes to bad debt provision established on an individual basis:
√Applicable□Not applicable
Note: Sunac Real Estate Group Co., Ltd. referred to the ultimate note issuers that were controlled by Sunac
Real Estate Group.
Bad debt provision established on a grouping basis:
□Applicable√Not applicable
Bad debt provision established using the general model of expected credit loss
□Applicable√Not applicable
Significant change in the gross amount of a note receivable with change in loss provision in the period:
□Applicable√Not applicable
(3) Bad debt provision
√Applicable□Not applicable
Unit: RMB
Changes for the current period
Opening Reversed or Other Closing
Type Charged-off/Written-
balance Established transferred- changes balance
off
back
Bad debt
provision
established
3,712,829.75 3,712,829.75
on an
individual
basis
Bad debt
provision
established
on a
grouping
basis
Total 3,712,829.75 3,712,829.75
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
□Applicable√Not applicable
5. Accounts receivable
(1) Breakdown by aging
√Applicable□Not applicable
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year
Of which: Sub-items within 1 year
Within 1 year 273,476,497.96 233,008,605.06
Subtotal within 1 year 273,476,497.96 233,008,605.06
1 to 2 years 7,866,907.10 5,456,955.48
2 to 3 years 3,459,391.51 1,078,528.87
195 / 266
Annual Report 2023
Over 3 years 6,542,888.61 6,932,922.28
Total 291,345,685.18 246,477,011.69
(2) Breakdown by method of establishing bad debt provisions
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Bad debt Bad debt
Gross amount Gross amount
provision provision
Type Provis Provis
Carrying Carrying
Perce ion Perce ion
amount amount
Amount ntage Amount perce Amount ntage Amount perce
(%) ntage (%) ntage
(%) (%)
Bad
debt
provis
ion
establi 4,182,35 4,182,35 100.0
1.44
shed 3.15 3.15 0
on an
indivi
dual
basis
Of which:
Bad
debt
provis
ion
establi 287,163, 22,408,8 264,754, 246,477, 100.0 19,668,3 226,808,
98.56 7.80 7.98
shed 332.03 98.28 433.75 011.69 0 12.50 699.19
on a
groupi
ng
basis
Of which:
291,345, 100.0 26,591,2 264,754, 246,477, 100.0 19,668,3 226,808,
Total 9.13 7.98
685.18 0 51.43 433.75 011.69 0 12.50 699.19
Bad debt provision established on an individual basis:
□Applicable√Not applicable
Bad debt provision established on a grouping basis:
√Applicable□Not applicable
Unit: RMB
Closing balance
Name Provision percentage
Accounts receivable Bad debt provision
(%)
Within 1 year 271,595,825.88 13,579,791.30 5.00
1 to 2 years 5,565,226.03 556,522.60 10.00
2 to 3 years 3,459,391.51 1,729,695.77 50.00
Over 3 years 6,542,888.61 6,542,888.61 100.00
Total 287,163,332.03 22,408,898.28 7.80
Notes to bad debt provision established on a grouping basis:
□Applicable√Not applicable
Bad debt provision established using the general model of expected credit loss
□Applicable√Not applicable
196 / 266
Annual Report 2023
Significant change in the gross amount of an account receivable with change in loss provision in the period:
□Applicable√Not applicable
(3) Bad debt provision
√Applicable□Not applicable
Unit: RMB
Changes for the current period
Opening Recovered Transferred Closing
Type Other
balance Established or or written- balance
changes
reversed off
Bad debt
provision
established
19,668,312.50 4,288,482.82 1,547,897.04 22,408,898.28
on a
grouping
basis
Bad debt
provision
established
4,182,353.15 4,182,353.15
on an
individual
basis
Total 19,668,312.50 8,470,835.97 1,547,897.04 26,591,251.43
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
□Applicable√Not applicable
(4) Top five entities with respect to accounts receivable and contract assets
√Applicable □Not applicable
Unit: RMB
As % of
Closing the closing
balance of balance of
Closing Closing accounts total Closing
balance of balance of receivable accounts balance of
Entity
accounts contract and receivable bad debt
receivable assets contract and provision
assts contract
combined assts
combined
Beijing Jingdong
Century Trading Co., 78,489,962.66 26.94 3,924,498.13
Ltd.
Alpha. Ltd 14,387,019.84 4.94 719,350.99
Zhejiang TMALL
11,041,168.49 3.79 552,058.42
Technology Co., Ltd.
Shenzhen Oushangte
7,040,593.45 2.42 352,029.67
Technology Co., Ltd.
Belkin International,
6,371,890.78 2.19 318,594.54
Inc
Total 117,330,635.22 40.28 5,866,531.75
Other notes:
□Applicable √Not applicable
197 / 266
Annual Report 2023
6. Receivables financing
(1) Breakdown of receivables financing
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Bank acceptance notes 5,359,014.96 1,036,801.70
Total 5,359,014.96 1,036,801.70
7. Prepayments
(1) Breakdown of prepayments by aging
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1
55,113,449.56 98.02 48,536,368.53 97.79
year
1 to 2 years 927,511.80 1.65 955,431.40 1.92
2 to 3 years 158,328.10 0.28 101,394.68 0.20
Over 3 years 30,644.49 0.05 42,500.00 0.09
Total 56,229,933.95 100.00 49,635,694.61 100.00
Reason for outstanding prepayments that are over 1 year and of a substantial amount:
None.
(2) Top five entities with respect to prepayments
√Applicable □Not applicable
As % of the closing balance of
Entity Closing balance
total prepayments
Guangxi Jingdong Qingchuan
8,774,619.05 15.60
E-commerce Co., Ltd.
State Grid Zhejiang Electric
Power Co., Ltd. Cixi Power 6,058,053.53 10.77
Supply Company
Hangzhou Alimama Software
4,166,954.20 7.41
Service Co., Ltd.
Beijing Jiahe Jingshi Culture
2,830,188.68 5.03
Media Co., Ltd.
Ningbo Funde Energy Co.,
2,740,187.64 4.87
Ltd.
Total 24,570,003.10 43.68
Other notes
□Applicable √Not applicable
8. Other receivables
Breakdown
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Interests receivable
Dividends receivable
Other receivables 11,433,179.13 71,887,692.32
Total 11,433,179.13 71,887,692.32
Other notes:
□Applicable√Not applicable
198 / 266
Annual Report 2023
Other receivables
(1) Breakdown by aging
√Applicable□Not applicable
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year
Of which: Sub-items within 1 year
Within 1 year 6,237,495.11 13,221,675.68
Subtotal within 1 year 6,237,495.11 13,221,675.68
1 to 2 years 5,865,665.18 5,000,909.07
2 to 3 years 2,356,920.27 111,402,564.49
Over 3 years 111,890,639.86 4,575,618.48
Total 126,350,720.42 134,200,767.72
(2) Breakdown by nature
√Applicable□Not applicable
Unit: RMB
Nature Closing gross amount Opening gross amount
Call money 110,000,000.00 110,000,000.00
Housing loan for employees 6,447,164.88 12,466,303.78
Guaranteed deposit 7,915,806.25 8,486,128.40
Others 1,987,749.29 3,248,335.54
Total 126,350,720.42 134,200,767.72
(3) Bad debt provision
√Applicable□Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debt 12-month Lifetime expected Lifetime expected
Total
provision expected credit loss (without credit loss (with
credit loss credit impairment) credit impairment)
Balance of 1
1,111,083.75 925,090.91 60,276,900.74 62,313,075.40
January 2023
Balance of 1
January 2023 in
1,111,083.75 925,090.91 60,276,900.74 62,313,075.40
the Current
Period
- Transferred to
-293,283.26 293,283.26
Stage 2
- Transferred to
-235,692.03 235,692.03
Stage 3
- Transferred
back to Stage 2
- Transferred
back to Stage 1
Amount accrued
for the current -505,925.74 53,884.38 53,056,507.25 52,604,465.89
period
Amount
transferred-back
for the current
period
Amount charged-
off for the
199 / 266
Annual Report 2023
current period
Amount written-
off for the
current period
Other changes
Balance as at 31
311,874.75 1,036,566.52 113,569,100.02 114,917,541.29
December 2023
Significant change in the gross amount of an other receivable with change in loss provision in the period:
□Applicable√Not applicable
Basis for a significant increase in a bad debt provision and the credit risk of a financial instrument in the
current period:
□Applicable√Not applicable
(4) Bad debt provision
√Applicable□Not applicable
Unit: RMB
Changes for the current period
Opening Reversed or Closing
Type Charged-off/Written- Other
balance Established transferred- balance
off changes
back
Bad debt
provision
established
55,500,000.00 55,000,000.00 110,500,000.00
on an
individual
basis
Bad debt
provision
established
6,813,075.40 -2,395,534.11 4,417,541.29
on a
grouping
basis
Total 62,313,075.40 52,604,465.89 114,917,541.29
Of which the bad debt provision recovered or transferred-back with significant amount during the
current period:
□Applicable√Not applicable
(5) Top five entities with respect to other receivables
√Applicable□Not applicable
Unit: RMB
As % of the
Nature of
closing balance of Closing balance of
Entity Closing balance other Aging
total other bad debt provision
receivable
receivables
Sunac Real
Over 3
Estate Group 110,000,000.00 87.06 Call money 110,000,000.00
years
Co., Ltd.
Changzhou
Pa’erlingke
Intelligent
Payment for Over 3
Lifting 1,099,532.00 0.87 1,099,532.00
goods years
Lighting
Equipment
Co., Ltd.
200 / 266
Annual Report 2023
Beijing
Jingdong
Security Within 1
Century 750,000.00 0.59 37,500.00
deposit year
Trading Co.,
Ltd.
Zhejiang
Tmall Security Within 1
643,617.22 0.51 32,180.86
Technology deposit year
Co., Ltd.
Shanghai
Mehood Hotel Security
500,000.00 0.40 1-2 years 500,000.00
Management deposit
Co., Ltd.
Total 112,993,149.22 89.43 / / 111,669,212.86
[Note] The loan was provided by the Company's subsidiary Electric Sales to Sunac Real Estate Group
Co., Ltd. Inclusive of seven of its subsidiaries in order to expand its sales to Sunac Group in the principal
amount of RMB110,000,000.00 for a period of two years, which was guaranteed by Sunac Group.
9. Inventories
(1) Category of inventories
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Inventory Inventory
valuation valuation
allowances or allowances or
Item impairment impairment
Gross amount Carrying amount Gross amount Carrying amount
allowances allowances for
for contract contract
performance performance
costs costs
Finished goods 852,787,019.73 19,542,429.66 833,244,590.07 673,207,187.70 14,761,249.29 658,445,938.41
Goods in transit 269,047,594.97 269,047,594.97 293,819,050.68 293,819,050.68
Raw materials 109,031,530.45 3,757,832.62 105,273,697.83 113,937,083.04 113,937,083.04
Work-in-
165,210,953.31 165,210,953.31 160,824,141.92 160,824,141.92
progress
Commissioned
32,755,034.14 32,755,034.14 41,122,518.19 41,122,518.19
products
Low-value
7,979,087.01 7,979,087.01 9,948,213.19 9,948,213.19
consumables
Packaging
7,567,102.11 7,567,102.11 7,121,510.66 7,121,510.66
material
Total 1,444,378,321.72 23,300,262.28 1,421,078,059.44 1,299,979,705.38 14,761,249.29 1,285,218,456.09
(2) Inventory valuation allowances and impairment allowances for contract performance costs
√Applicable□Not applicable
Unit: RMB
Increase in the current Decrease in the current
period period
Opening Closing
Item Reversed
balance Establishe balance
Others or charged Others
d
off
14,761,24 13,753,599 8,972,419. 19,542,42
Finished goods
9.29 .47 10 9.66
3,757,832. 3,757,832.
Raw materials
62 62
14,761,24 17,511,432 8,972,419. 23,300,26
Total
9.29 .09 10 2.28
201 / 266
Annual Report 2023
Reasons for charge-off/write-off of inventory valuation provisions in the current period:
√Applicable□Not applicable
The specific basis Reasons for transferred- Reasons for charged-off
Item for determining the net backing the reserve for the reserve for inventory
realizable value inventory shrinkage shrinkage
Realizable net value
determined by deducting Realizable net value of
Inventory for which
estimated selling price of inventory for which
impairment reserves were
related finished products impairment reserves
Raw materials previously recognised
from estimated cost to were previously
was consumed/sold
completion, estimated recognised increased
during the current period
selling expenses, and during the period
related taxes
The net realizable value Realizable net value of
Inventory for which
is determined by inventory for which
impairment reserves were
estimated selling price impairment reserves
Finished goods previously recognised
deducting the estimated were previously
was consumed/sold
selling expense and the recognised increased
during the current period
relevant taxes during the period
Inventory valuation allowances established on a grouping basis:
□Applicable√Not applicable
Basis for establishing inventory valuation allowances on a grouping basis:
□Applicable√Not applicable
10. Other current assets
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Contract acquisition costs
Refund costs receivable
Wealth management products 50,265,479.45 283,755,939.73
Input VAT to be credited 44,858,276.65 63,937,448.75
Advance payment of enterprise
14,858,628.96 16,132,038.41
income tax
Total 109,982,385.06 363,825,426.89
Other notes:
Details of WM products:
Item Closing balance Opening balance Type
Structured deposit of Ningbo Structured bank
50,000,000.00 150,000,000.00
Bank deposit
Yangguangbi Jigouying of
10,000.00 10,000.00 Fixed income
Everbright Bank
Return voucher of Founder
100,000,000.00 Fixed income
Securities
Structured deposit of China Structured bank
30,000,000.00
Merchants Bank deposit
Interest on structured bank
255,479.45 3,745,939.73
deposits
Total 50,265,479.45 283,755,939.73
202 / 266
Annual Report 2023
11. Fixed assets
Breakdown
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1,981,807,551.42 1,851,129,657.93
Fixed assets disposed of 4,361,393.61 3,364,852.64
Total 1,986,168,945.03 1,854,494,510.57
Other notes:
√Applicable□Not applicable
1) Schedule
Buildings and Machinery Transportation Electronic and Decoration of
Item Total
constructions equipment vehicle other equipment the fixed assets
I Gross amount:
1. Opening
1,605,846,858.69 1,035,514,604.00 34,189,267.41 149,783,413.04 68,545,313.62 2,893,879,456.76
balance
2. Increase in the
184,676,907.08 165,236,256.15 1,245,554.04 20,796,926.33 9,393,775.02 381,349,418.62
current period
(1) Purchased 56,951,149.08 21,407,351.89 1,245,554.04 6,445,625.69 605,555.97 86,655,236.67
(2) Transfer from
construction in 127,725,758.00 143,828,904.26 14,351,300.64 8,788,219.05 294,694,181.95
progress
3. Decrease in
67,557,139.56 1,972,484.87 6,440,948.80 649,658.49 76,620,231.72
the current period
(1) Disposal or
retirement 67,557,139.56 1,972,484.87 6,440,948.80 649,658.49 76,620,231.72
4. Closing
1,790,523,765.77 1,133,193,720.59 33,462,336.58 164,139,390.57 77,289,430.15 3,198,608,643.66
balance
II Accumulated
depreciation
1. Opening
303,349,247.38 530,004,540.52 32,585,039.05 120,306,218.02 51,289,287.89 1,037,534,332.86
balance
2. Increase in the
71,453,026.70 136,382,138.35 2,066,676.20 21,400,270.53 10,215,113.16 241,517,224.94
current period
(1) Established 71,453,026.70 136,382,138.35 2,066,676.20 21,400,270.53 10,215,113.16 241,517,224.94
3. Decrease in
58,136,366.67 1,859,529.51 6,332,013.80 516,723.65 66,844,633.63
the current period
(1) Disposal or
58,136,366.67 1,859,529.51 6,332,013.80 516,723.65 66,844,633.63
retirement
4. Closing
374,802,274.08 608,250,312.20 32,792,185.74 135,374,474.75 60,987,677.40 1,212,206,924.17
balance
III Impairment
allowances
1. Opening
4,595,825.79 619,640.18 5,215,465.97
balance
2. Increase in the
current period
3. Decrease in
618,451.64 2,846.26 621,297.90
the current period
(1) Disposal or
618,451.64 2,846.26 621,297.90
retirement
4. Closing
3,977,374.15 616,793.92 4,594,168.07
balance
IV Carrying
amount
1. Closing
1,415,721,491.69 520,966,034.24 670,150.84 28,148,121.90 16,301,752.75 1,981,807,551.42
carrying amount
2. Opening
1,302,497,611.31 500,914,237.69 1,604,228.36 28,857,554.84 17,256,025.73 1,851,129,657.93
carrying amount
2) Fixed assets leased out under operating leases
203 / 266
Annual Report 2023
Closing carrying
Item
amount
Buildings and constructions 2,293,354.34
Subtotal 2,293,354.34
3) Fixed assets with pending ownership certificate
Reason for not
Item Carrying amount obtaining ownership
certificate
A technology information company in Room 301 and Delivered and
others, Building 7, Zone A, Yinggang East Road, Zhao 260,040,799.00 procedures are in
Xiang Town process
Information needs to be
The 3# Factory in the Western Base of the Company changed, and ownership
206,768,408.10
and ancillary works certificate needs to be
replaced
Information needs to be
The 1# Factory and ancillary works in Cidong changed, and ownership
77,216,332.11
Precision Manufacturing Base of the Company certificate needs to be
replaced
Subtotal 544,025,539.21
Fixed assets disposed of
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Scrapped machinery
equipment yet to be 4,361,393.61 3,364,852.64
completely disposed
Total 4,361,393.61 3,364,852.64
12. Construction in progress
Construction in progress
(1) Details of construction in progress
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Impairmen Impairmen
Item Carrying Carrying
Gross amount t Gross amount t
amount amount
allowances allowances
R&D centre
and
headquarters 212,491,009.5 212,491,009.5
276,146,641.36 276,146,641.36
base 7 7
construction
project
Base
construction
project for
annual output
182,584,672.1 182,584,672.1 130,109,662.8 130,109,662.8
of 410
9 9 1 1
million sets
of wall
switches and
sockets
Ningbo 171,044,303.3 171,044,303.3
65,201,429.24 65,201,429.24
Goneo 0 0
204 / 266
Annual Report 2023
Longshan
Community
construction
project
Base
construction
project for
annual output 107,721,542.7 107,721,542.7 146,348,397.9 146,348,397.9
of 180 9 9 4 4
million sets
of LED
lamps
Information
technology
3,371,026.55 3,371,026.55 2,814,215.88 2,814,215.88
promotion
project
Construction
project for
automation
upgrading of
20,761,287.51 20,761,287.51
annual output
of 400
million sets
of adaptors
Equipment to
36,630,850.28 36,630,850.28 22,521,969.18 22,521,969.18
be installed
Other
miscellaneou 29,086,422.09 29,086,422.09 11,209,878.41 11,209,878.41
s projects
806,585,458.5 806,585,458.5 611,457,850.5 611,457,850.5
Total
6 6 4 4
205 / 266
Annual Report 2023
(2) Changes in significant construction in progress during the current period
√Applicable□Not applicable
Unit: RMB
Other Cumulative Of which: Interest
Transferred to
Period- Increase in decreases project Project Cumulative Capitalised capitalisation
fixed assets in Period-end Funding
Project Budget beginning the current in the investment progress capitalised interest in rate for the
the current balance source
balance period current as % of the (%) interest the current current
period
period budget period period (%)
R&D centre
and
headquarters Raised
708,225,600.00 212,491,009.57 67,969,770.98 4,314,139.19 276,146,641.36 90.16 90.00
base funds
construction
project
Base
construction
project for
annual Raised
743,810,500.00 146,348,397.94 92,986,257.34 131,613,112.49 107,721,542.79 29.86 35.00
output of funds
180 million
sets of LED
lamps
Base
construction
project for
annual
Raised
output of 1,204,528,600.00 130,109,662.81 68,787,053.37 16,312,043.99 182,584,672.19 42.32 45.00
funds
410 million
sets of wall
switches and
sockets
Ningbo
Goneo
Longshan Own
278,500,000.00 65,201,429.24 105,842,874.06 171,044,303.30 61.95 65.00
Community funds
construction
project
Information
technology Raised
240,350,000.00 2,814,215.88 1,743,276.54 1,186,465.87 3,371,026.55 45.93 50.00
promotion funds
project
206 / 266
Annual Report 2023
Construction
project for
automation
upgrading of
Raised
annual 999,036,300.00 20,761,287.51 36,784,559.88 57,545,847.39 81.24 100.00
funds
output of
400 million
sets of
adaptors
Equipment
Own
to be 22,521,969.18 92,238,759.97 78,129,878.87 36,630,850.28
funds
installed
Total 4,174,451,000.00 600,247,972.13 466,352,552.14 289,101,487.80 777,499,036.47 / / / /
207 / 266
Annual Report 2023
13. Right-of-use assets
(1) Details of right-of-use assets
√Applicable□Not applicable
Unit: RMB
Item Buildings and constructions Total
I Gross amount
1. Opening balance 36,547,808.12 36,547,808.12
2. Increase in the current period 22,613,890.22 22,613,890.22
(1) Rent 22,613,890.22 22,613,890.22
(2) Increase through
consolidation
3. Decrease in the current
23,439,710.77 23,439,710.77
period
(1) Disposed amount 23,439,710.77 23,439,710.77
4. Closing balance 35,721,987.57 35,721,987.57
II Accumulated depreciation
1. Opening balance 23,235,100.55 23,235,100.55
2. Increase in the current period 13,680,373.05 13,680,373.05
(1) Accrued amount 13,680,373.05 13,680,373.05
3. Decrease in the current
19,995,937.92 19,995,937.92
period
(1) Disposal 19,995,937.92 19,995,937.92
4. Closing balance 16,919,535.68 16,919,535.68
III Impairment allowances
1. Opening balance
2. Increase in the current period
(1) Accrued amount
3. Decrease in the current
period
(1) Disposal
4. Closing balance
IV Carrying amount
1. Closing carrying amount 18,802,451.89 18,802,451.89
2. Opening carrying amount 13,312,707.57 13,312,707.57
(2) Impairment tests of right-of-use assets
□Applicable√Not applicable
Determination of the net recoverable amount (fair value less costs of disposal):
□Applicable√Not applicable
Determination of the recoverable amount based on the present value of the expected future cash
flow:
□Applicable√Not applicable
Reasons for significant inconsistency between the above-mentioned information and the
information adopted in the impairment tests in the prior year or external information:
□Applicable√Not applicable
208 / 266
Annual Report 2023
Reasons for significant inconsistency between the information adopted in the impairment tests in
the prior year and the actual situation in the year:
□Applicable√Not applicable
14. Intangible assets
(1) Details of intangible assets
√Applicable □Not applicable
Unit: RMB
Non-patented Patent and
Item Land use rights Patent rights Software Total
technologies know-how
I Gross amount
1.
Opening 356,739,324.07 90,754,870.46 30,283,018.69 477,777,213.22
balance
2.
Increase in
27,830,600.00 753,214.67 28,583,814.67
the current
period
(1)
27,830,600.00 753,214.67 28,583,814.67
Purchased
(2)
Developed
internally
(3)
Increase
through
business
combination
3.
Decrease in
280,041.38 280,041.38
the current
period
(1)
280,041.38 280,041.38
Disposal
4.
Closing 384,569,924.07 91,228,043.75 30,283,018.69 506,080,986.51
balance
II Accumulated depreciation
1.
Opening 46,953,887.48 74,815,020.87 30,283,018.69 152,051,927.04
balance
2.
Increase in
7,215,511.89 12,275,393.05 19,490,904.94
the current
period
(1)
7,215,511.89 12,275,393.05 19,490,904.94
Established
3.
Decrease in
279,818.18 279,818.18
the current
period
(1)
279,818.18 279,818.18
Disposal
4.
Closing 54,169,399.37 86,810,595.74 30,283,018.69 171,263,013.80
balance
III Impairment allowances
1.
Opening
balance
2.
Increase in
209 / 266
Annual Report 2023
the current
period
(1)
Established
3.
Decrease in
the current
period
(1)
Disposal
4.
Closing
balance
IV Carrying amount
1.
Closing
330,400,524.70 4,417,448.01 334,817,972.71
carrying
amount
2.
Opening
309,785,436.59 15,939,849.59 325,725,286.18
carrying
amount
The proportion of intangible assets developed internally by the Company at the period-end to the closing
balance of intangible assets is 0.
15. Goodwill
(1) Gross amount of goodwill
√Applicable□Not applicable
Unit: RMB
Increase in the current Decrease in the current
period period
Investee or item Generated
Opening Closing
generating due to
balance balance
goodwill business Disposal
combinatio
n
45,133,44 45,133,44
Dalitek
2.04 2.04
45,133,44 45,133,44
Total
2.04 2.04
(2) Impairment allowances for goodwill
√Applicable□Not applicable
Unit: RMB
Investee or item Increase in the current Decrease in the
Opening period current period
generating Closing balance
balance
goodwill Established Disposal
Dalitek 45,133,442.04 45,133,442.04
Total 45,133,442.04 45,133,442.04
(3) Information on the asset group or combination of asset groups to which goodwill is apportioned
√Applicable□Not applicable
Composition and basis of Operating segment to Whether it is
Name the asset group or which it belongs and consistent with that
combination of asset basis of the prior years
210 / 266
Annual Report 2023
groups to which it
belongs
Dalitek assets group Dalitek’s relevant Shanghai Yes
operating assets and segment/division
liabilities/The assets
group can generate cash
flows independently
Changes in the assets group or combination of assets groups
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Approaches to calculating recoverable amounts:
Carrying value of asset group or asset
Recoverable Impairment accrued
Item group combination containing
amount during the current period
goodwill
Dalitek assets
97,849,430.93 31,438,746.96 45,133,442.04
group
Subtotal 97,849,430.93 31,438,746.96 45,133,442.04
(Continued)
Parameters of the
Parameters of the forecast stable period,
period, such as revenue including growth Discount rate and
Forecast
Item growth rate and profit rate, rate and profit rate, relevant evidence to
period
and relevant evidence to and relevant determine it
determine them evidence to
determine them
Determination based on the
Determination
Company's operating
Consistent with the according to
Dalitek The next performance in previous
figures of the final adjustments based on
assets five years, growth rate, industrial
year during the the weighted average
group years development level, and the
forecast period cost of capital
management's prediction
(WACC)
about the market development
Subtotal
(4) Performance commitments and corresponding goodwill impairment
When goodwill is formed, there is a commitment to the results and the Reporting Period or the period
preceding the Reporting Period is within the commitment period
√Applicable □Not applicable
Unit: RMB
Impairment
Item Performance commitment fulfilment status amount in the
previous period
211 / 266
Annual Report 2023
Current period Previous period
Current Previous
Committed Actual Completion Committed Actual Completion
period period
results results rate (%) results results rate (%)
95,610,240 43,910,71 79,675,200. 53,135,9 45,133,
Dalitek 45.93 66.69
.00 7.81 00 68.72 442.04
95,610,240 43,910,71 79,675,200. 53,135,9 45,133,
Subtotal 45.93 66.69
.00 7.81 00 68.72 442.04
Note: The above results are for the current year's revenue from main operations.
Other notes:
□Applicable√Not applicable
16. Long-term prepaid expense
√Applicable□Not applicable
Unit: RMB
Increase in Amortisation
Opening Other Closing
Item the current in the current
balance decreases balance
period period
2020 Special
Talent
19,172,452.61 9,835,655.00 7,145,058.80 21,863,048.81
Shareholding
Plan
Payment for
1,191,778.17 767,160.08 1,056,294.82 902,643.43
fixtures
Total 20,364,230.78 10,602,815.08 8,201,353.62 22,765,692.24
Other notes:
For details of the 2020 Special Talent Shareholding Plan, please refer to “6. Other information” under
“XV Share-based Payments” of “Part X Financial Statements” herein.
17. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets before offsetting
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Item Deductible Deferred Deductible
Deferred income
temporary income tax temporary
tax assets
differences assets differences
Discount on sale
357,643,266.34 89,410,816.58 215,847,304.76 53,961,826.18
accrued in advance
Unrealised profit of
271,313,758.99 67,271,169.94 252,930,292.22 62,732,294.01
internal transactions
Restricted share
94,025,510.93 16,173,194.84 75,629,104.14 12,895,430.16
incentive plan
Bad debt provisions 18,191,268.29 4,546,678.09 12,807,769.56 2,837,063.79
Inventory valuation
16,718,107.31 2,999,271.21 11,405,652.18 2,113,928.17
allowances
2020 Special Talent
6,812,580.85 1,135,364.21 5,153,783.46 865,523.02
Shareholding Plan
Lease liabilities 13,236,198.11 2,994,334.16 6,788,398.74 1,423,636.74
Deductible losses 3,851,266.00 962,816.50
Deferred income 53,820,328.00 8,073,049.20
Total 781,791,956.82 185,493,645.53 634,382,633.06 144,902,751.27
212 / 266
Annual Report 2023
(2) Deferred income tax liabilities before offsetting
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liabilities differences liabilities
Increase in valuation of
assets obtained in a
business combination
not involving entities
under common control
Changes in the fair
value of other debt
investments
Changes in the fair
value of other equity
investments
Depreciation policy on
fixed assets subject to 397,854,112.55 68,629,693.19 340,139,021.71 54,854,169.49
tax variances
Gain and loss of hedge
instrument included in
5,817,762.23 1,454,440.56
the other
comprehensive income
Right-of-use assets 15,382,655.83 3,536,657.20 7,136,392.05 1,513,382.32
Total 413,236,768.38 72,166,350.39 353,093,175.99 57,821,992.37
(3) Schedule of deferred income tax assets unrecognised
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Deductible temporary
119,511,709.36 88,836,167.52
differences
Deductible losses 35,440,787.99 37,516,651.15
Total 154,952,497.35 126,352,818.67
(4) Deductible losses on which deferred income tax assets were unrecognised will expire in the
following years
√Applicable□Not applicable
Unit: RMB
Year Closing balance Opening balance Remark
2026 5,998,535.59
2027 31,518,115.56
2028 35,440,787.99
Total 35,440,787.99 37,516,651.15 /
Other notes:
□Applicable√Not applicable
18. Other non-current assets
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
213 / 266
Annual Report 2023
Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowances amount allowances amount
Contract
acquisition
costs
Contract
performance
costs
Refund costs
receivable
Contract
assets
Prepayment
for
50,181,765.02 50,181,765.02 57,186,173.77 57,186,173.77
equipment
acquisition
2020 Special
Talent
9,574,607.00 9,574,607.00 19,321,842.00 19,321,842.00
Shareholding
Plan
Total 59,756,372.02 59,756,372.02 76,508,015.77 76,508,015.77
19. Assets with restricted ownership or right of use
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Condition Condition
Item Carrying Type of Carrying Type of
Gross amount of Gross amount of
amount restriction amount restriction
restriction restriction
In pledge
for short-
term Security
borrowings, deposits
and that
Monetary
243,689,624.83 243,689,624.83 Frozen security 20,916,287.58 20,916,287.58 Frozen cannot be
assets
deposits withdrawn
that cannot on
be demand
withdrawn
on demand
Notes
receivable
Inventories
Fixed
assets
Intangible
assets
Total 243,689,624.83 243,689,624.83 / / 20,916,287.58 20,916,287.58 / /
20. Short-term borrowings
(1) Category of short-term borrowings
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Borrowings secured by pledge 200,000,000.00
Borrowings secured by collateral
Borrowings secured by
5,000,000.00 4,000,000.00
guarantee [note]
Unsecured borrowings 382,972,102.34 840,000,000.00
Interest payable on short-term
372,073.67 1,374,749.03
borrowings
Total 588,344,176.01 845,374,749.03
214 / 266
Annual Report 2023
Notes of the category for short-term borrowings:
Note: Zhang Wenying, a minority shareholder of Dalitek, and her spouse, Zhou Yun, provided guarantee
for the loan to Dalitek.
21. Held-for-trading financial liabilities
√Applicable□Not applicable
Unit: RMB
Item Opening balance Closing balance Recognition basis
Held-for-trading financial /
18,200,000.00
liabilities
Of which:
Investment payables 18,200,000.00 /
Financial liabilities at fair value
through profit or loss
Of which:
Total 18,200,000.00 /
Other notes:
√Applicable□Not applicable
The contingent consideration for the Company's acquisition of Dalitek was RMB27.3 million. Dalitek
has fulfilled the performance commitment in 2021 and the Company paid the contingent consideration of
RMB9.1 million on 2 September 2022; Dalitek's audited revenue in 2022 and 2023 have not met the
performance commitment and the remaining contingent consideration was therefore not payable. This
reduced the payables for investment by RMB18.2 million and the same amount of income from changes
in fair value was recognized in the current period.
22. Accounts payable
(1) Breakdown of accounts payable
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Payment for goods 1,947,816,314.15 1,506,053,347.86
Engineering equipment 69,305,849.84 87,123,159.57
Payment for expense 39,535,641.41 50,485,456.10
Total 2,056,657,805.40 1,643,661,963.53
23. Contract liabilities
(1) Details of contract liabilities
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Advance receipt of payment
528,493,231.61 431,654,611.71
for goods
Total 528,493,231.61 431,654,611.71
24. Employee benefits payable
(1) Breakdown of employee benefits payable
√Applicable□Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I Short-term Benefits 326,610,564.37 2,021,790,969.72 1,961,196,188.03 387,205,346.06
215 / 266
Annual Report 2023
II After-service Benefits-
defined Contribution 8,414,094.64 125,113,675.01 116,078,905.08 17,448,864.57
Schemes
III Severance Benefits 67,500.00 5,996,743.49 5,902,166.49 162,077.00
IV Other Benefits that are due
within 1 year
Total 335,092,159.01 2,152,901,388.22 2,083,177,259.60 404,816,287.63
(2) Breakdown of short-term benefits
√Applicable□Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I Salaries, Bonuses,
320,756,805.77 1,821,618,990.98 1,761,947,133.25 380,428,663.50
Allowances and Subsidies
II Staff welfare 54,208,890.38 54,208,890.38
III Social Insurance
5,736,242.65 64,111,980.15 63,389,363.48 6,458,859.32
Premiums
Of which: Medical insurance
5,331,811.11 59,780,595.52 59,465,480.21 5,646,926.42
premiums
Work-related injury
404,431.54 4,331,384.63 3,923,883.27 811,932.90
insurance premiums
Maternity insurance
IV Housing Allowance 117,515.95 59,040,738.45 58,840,431.16 317,823.24
V Labour Union Expense and
22,810,369.76 22,810,369.76
Employee Education Budget
VI Short-term Paid Absence
VII Short-term Profit Sharing
Plan
Total 326,610,564.37 2,021,790,969.72 1,961,196,188.03 387,205,346.06
(3) List of defined contribution plan
√Applicable□Not applicable
Unit: RMB
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
1. Basic pension insurance 8,125,733.17 120,404,307.48 111,679,190.10 16,850,850.55
2. Unemployment
288,361.47 4,709,367.53 4,399,714.98 598,014.02
insurance premiums
3. Supplementary pension
payment
Total 8,414,094.64 125,113,675.01 116,078,905.08 17,448,864.57
Other notes:
□Applicable√Not applicable
25. Taxes and levies payable
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Enterprise income tax 187,097,927.11 203,734,037.13
VAT 70,436,420.37 58,417,765.49
Educational surcharges 2,308,204.30 1,838,024.51
Local educational fee 1,540,340.20 1,225,349.64
Real estate tax 13,388,952.58 10,551,939.19
Land use tax 4,853,339.15 4,827,210.48
Stamp duty 6,741,966.75 8,636,239.12
Personal income tax 5,465,677.83 4,800,514.20
216 / 266
Annual Report 2023
Urban construction and
3,924,664.19 3,173,319.78
maintenance tax
Disability allowance 15,417,409.54 3,103,966.10
Vehicle and vessel use tax 15,943.41
Total 311,190,845.43 300,308,365.64
26. Other payables
(1) Breakdown
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest payable
Dividends payable
Other payables
Discount on sale accrued in
357,643,266.34 215,847,304.76
advance
Obligations of restricted stock
79,475,388.22 94,791,611.30
repurchase within one year
Security deposits 149,562,097.52 90,292,099.16
Accrued expenses 116,657,943.25 44,520,261.35
Temporary receipts and advances
1,722,211.31 962,594.28
payable
Total 705,060,906.64 446,413,870.85
Other notes:
□Applicable√Not applicable
27. Current portion of non-current liabilities
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Current portion of long-term
393,000,000.00
borrowings
Current portion of bonds
payable
Current portion of long-term
payables
Lease obligation matured
13,685,200.88 8,798,658.13
within 1 year
Current portion of long-term
274,138.89
borrowings - interest payable
Total 406,959,339.77 8,798,658.13
28. Other current liabilities
Other current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Short-term bond payable
Refunds payable
Output VAT to be charged 68,532,796.91 56,140,971.75
off
Total 68,532,796.91 56,140,971.75
217 / 266
Annual Report 2023
Increase/decrease of the short-term bonds payable:
□Applicable√Not applicable
Other notes:
□Applicable√Not applicable
218 / 266
Annual Report 2023
29. Lease liabilities
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
The amount of the lease payment
4,788,785.53 4,668,943.91
that has not yet been made
Minus: Unrecognised financing
45,558.14 124,324.69
expenses
Total 4,743,227.39 4,544,619.22
30. Deferred income
Deferred income
√Applicable □Not applicable
Unit: RMB
Decrease in
Opening Increase in the Closing Reason for
Item the current
balance current period balance formation
period
Government Related to
53,820,328.00 17,030,000.00 2,432,857.14 68,417,470.86
grants assets
Total 53,820,328.00 17,030,000.00 2,432,857.14 68,417,470.86 /
Other notes:
□Applicable√Not applicable
31. Other non-current liabilities
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Contract liabilities
Obligations of restricted stock
86,411,741.16 34,814,148.70
repurchase for over one year
Total 86,411,741.16 34,814,148.70
32. Share capital
√Applicable□Not applicable
Unit: RMB
Increase/decrease in the current period (+/-)
Opening Bonus Bonus Closing
New issue issue from
balance Others Subtotal balance
issue from capital
profit reserves
Total
601,077,590 2,189,848 288,517,221 -243,784 290,463,285 891,540,875
shares
Other notes:
(1) Restricted shares were granted during the current period, increasing the total shares by 2,189,848
shares and the share capital by RMB2,189,848.00; and a bonus issue from capital reserves was carried out
during the current period, increasing the total shares by 288,517,221 shares and the share capital by
RMB288,517,221.00.
(2) Due to the departure of employees participating in the restricted share incentive plan in the current
period, the Company repurchased 243,784 shares of restricted shares, reducing the share capital by
RMB243,784.00.
219 / 266
Annual Report 2023
33. Capital reserves
√Applicable□Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Capital
premium (share 3,628,393,991.93 153,723,339.81 298,963,047.19 3,483,154,284.55
premium)
Other capital
235,153,891.61 91,163,501.17 48,720,128.21 277,597,264.57
reserves
Total 3,863,547,883.54 244,886,840.98 347,683,175.40 3,760,751,549.12
Other notes, including a description of the increase or decrease for the current period and the reasons for
the change:
(1) Restricted shares were granted during the current period, increasing capital reserves (share
premium) by RMB105,003,211.60.
(2) A bonus issue from capital reserves was carried out during the current period, decreasing capital
reserves (share premium) by RMB288,517,221; and restricted shares were repurchased, decreasing capital
reserves (share premium) by RMB10,445,826.19.
(3) Based on the performance appraisal conditions and service vesting period of the restricted shares,
the Company recognised the share-based payment cost of RMB91,163,501.17, which was recorded in
capital reserves (other capital reserves).
(4) All restricted shares under the 2020 Restricted Share Incentive Plan were unlocked, the equity
incentive expenditure of RMB48,720,128.21, recorded in other capital reserves in the prior period, was
reclassified to capital reserves (share premium).
34. Treasury shares
√Applicable□Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Treasury shares 129,612,354.00 107,193,059.60 70,911,690.22 165,893,723.38
Total 129,612,354.00 107,193,059.60 70,911,690.22 165,893,723.38
Other notes, including a description of the increase or decrease for the current period and the reasons for
the change:
(1) Restricted shares were granted during the current period, increasing treasury shares by
RMB107,193,059.60.
(2) The departure of awardees of the restricted share incentive plans in the current period resulted in
a decrease in treasury shares worth RMB10,689,610.19; the partially unlocked restricted shares in the
current period caused a decrease in treasury shares worth RMB53,754,080.03; and the dividend for the
current period includes locked-up restricted share incentives and the cash dividend is revocable, resulting
in a decrease in treasury shares worth RMB6,468,000.00.
220 / 266
Annual Report 2023
35. Other comprehensive income
√Applicable□Not applicable
Unit: RMB
Amount incurred in the current period
Less: amount
Less: amount
previously
previously
recognized in After-tax
recognized in
other amount
Amount before income tax other Less: After-tax amount
Item Opening balance comprehensive attributable Closing balance
incurred in the current comprehensive Income tax attributable to non-
income and to the
period income and expense controlling interests
currently Company as
currently
transferred to the parent
transferred to
retained
profit or loss
earnings
I Other comprehensive income that
will not be reclassified to profit or
loss
Of which: Changes caused by
remeasurements on defined benefit
schemes
Other comprehensive
income that will not be reclassified
to profit or loss under the equity
method
Changes in the fair value
of other equity investments
Changes in the fair value
arising from changes in own credit
risk
II Other comprehensive income that
4,389,526.95 9,180,971.20 9,180,971.20 13,570,498.15
will be reclassified to profit or loss
Of which: Other comprehensive
income that will be reclassified to
profit or loss under the equity
method
Changes in the fair value
of other debt investments
Other comprehensive
income arising from the
reclassification of financial assets
221 / 266
Annual Report 2023
Credit impairment
allowances for other debt
investments
Reserve for cash flow
4,363,321.67 9,871,936.10 9,871,936.10 14,235,257.77
hedges
Differences arising from
the translation of foreign currency- 26,205.28 -690,964.90 -690,964.90 -664,759.62
denominated financial statements
Total other comprehensive income 4,389,526.95 9,180,971.20 9,180,971.20 13,570,498.15
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognised amount:
None.
222 / 266
Annual Report 2023
36. Surplus reserves
√Applicable□Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Statutory surplus
302,797,998.73 259,419,892.20 562,217,890.93
reserves
Discretional
surplus reserves
Reserve funds
Enterprise
development
funds
Others
Total 302,797,998.73 259,419,892.20 562,217,890.93
Notes, including changes and reason of change:
Statutory surplus reserves were established based on 10% of the net profit of the Company as the
parent for the current period.
37. Retained earnings
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Retained earnings as at the end of the
7,756,665,030.53 6,010,878,918.97
prior year before adjustment
Adjustment to opening retained
earnings (“+” for increase, “-” for -89,745.58 -179,970.91
decrease)
Opening retained earnings after
7,756,575,284.95 6,010,698,948.06
adjustment
Add: Net profit attributable to
owners of the Company as the parent 3,870,135,376.47 3,188,709,584.89
in the current period
Less: Appropriation to statutory
259,419,892.20
surplus reserves
Appropriation to discretionary
surplus reserves
Appropriation to general reserve
Dividends payable to ordinary
1,983,555,895.20 1,442,833,248.00
shareholders
Dividends for ordinary
shareholders that are converted to
share capital
Closing retained earnings 9,383,734,874.02 7,756,575,284.95
Specific adjustments to the opening retained earnings:
1. An effect of RMB-89,745.58 was incurred on the opening retained earnings by retrospective adjustment
conducted according to the Accounting Standards for Business Enterprises and relevant new regulations.
2. An effect of RMB0.00 was incurred on the opening retained earnings by changes in accounting policies.
3. An effect of RMB0.00 was incurred on the opening retained earnings by correction of significant
accounting errors.
4. An effect of RMB0.00 was incurred on the opening retained earnings by changes in combination scope
arising from same control.
5. An effect of RMB0.00 was incurred on the opening retained earnings by other adjustments combined.
223 / 266
Annual Report 2023
38. Revenue and cost of sales
(1) Operating revenue and cost of sales
√Applicable□Not applicable
Unit: RMB
2023 2022
Item
Revenue Costs Revenue Costs
Principal
15,669,231,313.32 8,899,467,288.16 14,052,771,512.23 8,716,930,704.54
operations
Other
25,524,292.92 14,717,244.11 28,601,518.71 13,151,880.54
operations
Total 15,694,755,606.24 8,914,184,532.27 14,081,373,030.94 8,730,082,585.08
Of which:
Revenue
generated
by 15,693,833,748.56 8,913,978,591.03 14,080,683,516.01 8,729,867,530.13
contracts
with
customers
39. Taxes and levies
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Urban maintenance and
46,317,630.84 43,535,121.72
construction tax
Educational surcharges 26,534,961.64 24,378,077.48
Local education surcharge 18,164,178.51 16,252,051.57
Real estate tax 16,243,518.69 10,331,309.05
Stamp duty 20,563,494.46 16,430,918.58
Land use tax 4,911,276.63 4,770,521.69
Vehicle and vessel use tax 41,465.24 44,403.17
Environment protection tax 19,642.28 15,656.64
Total 132,796,168.29 115,758,059.90
40. Selling expense
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Marketing expense 390,294,513.42 299,723,604.19
Employee remuneration 364,755,937.75 325,364,319.34
Advertising expense 192,142,669.81 77,484,221.03
Travel expense 59,289,771.77 43,297,989.40
Administrative expense 53,807,002.61 36,290,184.82
Lease rental 1,179,097.69 9,778,151.66
Others 8,969,167.55 8,449,188.97
Total 1,070,438,160.60 800,387,659.41
41. Administrative expense
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Employee remuneration 309,588,670.20 256,350,627.82
Share-based payments 98,308,559.97 84,081,337.22
Depreciation and amortisation 64,818,434.02 52,172,006.88
Office expense 58,115,972.47 45,742,988.76
House and equipment maintenance expense 27,812,968.10 21,657,342.01
224 / 266
Annual Report 2023
Tax 26,961,305.32 3,082,509.25
Consultant service expense 19,765,182.88 16,904,014.09
Lease rental 8,361,416.56 9,285,328.92
Business entertainment expense 8,118,461.86 5,668,555.03
Others 4,347,581.13 5,651,663.90
Total 626,198,552.51 500,596,373.88
42. R&D expense
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
R&D of adaptors 267,326,234.98 249,597,370.31
R&D of wall switches and sockets 184,030,365.79 154,925,908.04
R&D of LED 82,511,039.76 67,196,736.33
R&D of digital accessories 58,579,343.70 51,413,278.02
R&D of household appliances 35,641,121.17 25,044,926.07
R&D of circuit breakers 19,437,610.52 15,897,548.30
R&D of smart door locks 15,229,440.10 12,858,419.10
R&D of smart lighting 10,672,230.59 11,361,893.94
Total 673,427,386.61 588,296,080.11
43. Finance costs
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Interest costs 28,282,578.99 35,925,352.09
Interest income -136,526,600.97 -137,795,215.87
Exchange profit and loss -1,681,603.84 -6,216,803.18
Auxiliary expense 1,780,809.64 812,258.47
Cash discount -365,529.46 -718,892.47
Total -108,510,345.64 -107,993,300.96
44. Other income
√Applicable□Not applicable
Unit: RMB
By nature 2023 2022
Government grants related to
189,400,866.48 130,991,587.24
income
Over-deduction in the
calculation of the taxable
57,939,648.64
income amount for value added
tax
Return of auxiliary expense for
1,978,429.43 1,712,485.52
individual income tax withheld
Employment VAT reduction or
exemption for veterans and key 1,637,350.00 236,650.00
groups
Government grants related to
2,432,857.14
assets
Total 253,389,151.69 132,940,722.76
45. Return on investment
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
225 / 266
Annual Report 2023
Return on long-term equity
investments measured using the equity
method
Income from the disposal of long-term
equity investments
Income derived during the period of
holding held-for-trading financial
assets
Dividend income derived during the
period of holding other equity
investments
Interest income derived during the
period of holding debt investments
Interest income derived during the
period of holding other debt
investments
Income from the disposal of held-for-
trading financial assets
Income from the disposal of other
equity investments
Income from the disposal of debt
investments
Income from the disposal of other debt
investments
Income from debt restructuring
Return on investments in bank’s wealth
190,904,769.99 279,374,491.92
management products
Income from the disposal of financial
7,786,015.00 -7,385,680.00
instruments
Of which: futures investments 7,786,015.00 -7,385,680.00
Total 198,690,784.99 271,988,811.92
46. Gain on changes in fair value
√Applicable□Not applicable
Unit: RMB
Source of gain on changes in fair
2023 2022
value
Held-for-trading financial assets
Of which: Gain on changes in the
fair value of derivative financial
instruments
Held-for-trading financial liabilities 18,200,000.00
Investment property measured at
fair value
Of which: Gain on changes in the
fair value of financial liabilities at 18,200,000.00
fair value through profit or loss
Total 18,200,000.00
Other notes:
For details, please refer to “21. Held-for-trading financial liabilities” under “VII Notes to the
Consolidated Financial Statements” of “Part X Financial Statements” herein.
47. Credit impairment loss
√Applicable□Not applicable
226 / 266
Annual Report 2023
Unit: RMB
Item 2023 2022
Loss on bad debts of notes receivable
Bad debt loss of accounts receivable
Bad debt loss of other receivables
Impairment loss on investment in debt
obligations
Impairment loss on other investment in
debt obligations
Bad debt loss of long-term receivables
Impairment loss on financial
guarantees
Contractual asset impairment loss
Bad debt loss -61,075,301.86 -30,470,523.21
Total -61,075,301.86 -30,470,523.21
48. Asset impairment loss
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
I Impairment loss on contract assets
II Inventory valuation loss and
impairment loss on contract -17,511,432.09 -11,504,455.94
performance costs
III Impairment Loss on Long-term
Equity Investment
IV Impairment Loss on Investment
Property
V Impairment loss on fixed assets
VI Depreciation Loss of
Engineering Materials
VII Impairment Losses on
Construction in Progress
VIII Impairment Losses on
Productive Living Assets
IX Impairment Losses of Oil & Gas
Assets
X Impairment Losses on Intangible
Assets
XI Impairment losses on Goodwill -45,133,442.04
XII Others
Total -62,644,874.13 -11,504,455.94
49. Gains on disposal of assets
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Gains on disposal of fixed -5,484,474.02 -3,139,686.69
assets
Total -5,484,474.02 -3,139,686.69
50. Non-operating income
Details of non-operating income:
√Applicable□Not applicable
Unit: RMB
227 / 266
Annual Report 2023
Amount recognized in
Item 2023 2022 exceptional gains and
losses
Total gains on the
disposal of non-
current assets
Of which: Gains on
the disposal of fixed
assets
Gains on
the disposal of
intangible assets
Gains on the swap of
non-monetary assets
Donations received
Government grants
Damages for
infringement and 1,949,809.06 2,952,203.08 1,949,809.06
contract breaching
Default revenue of
563,915.11 498,535.51 563,915.11
suppliers
Default revenue of
13,132.00 17,277.64 13,132.00
dealers
Payment not required
12,773.55
to be made
Others 247,026.80 303,573.54 247,026.80
Total 2,773,882.97 3,784,363.32 2,773,882.97
Other notes:
□Applicable√Not applicable
51. Non-operating expenses
√Applicable □Not applicable
Unit: RMB
Amount recognized in
Item 2023 2022 exceptional gains and
losses
Total loss on the
disposal of non- 130,259.28 841,203.58 130,259.28
current assets
Of which: Loss on
the disposal of fixed
assets
Loss on
the disposal of
intangible assets
Loss on the swap of
non-monetary assets
Donations made 193,224,919.52 62,500,296.94 193,224,919.52
Compensation
225,015.70 225,015.70
expense
Others 155,174.38 47,161.99 155,174.38
Total 193,735,368.88 63,388,662.51 193,735,368.88
Other notes:
Details of donations:
228 / 266
Annual Report 2023
Item 2023 2022
Cixi General Institution of Charity 119,480,000.00 56,275,000.00
Red Cross Society of China Cixi Branch 67,427,494.72 4,688,737.42
Renovation of the Guyaopu Village 3,000,000.00
New Energy Class, Industrial College,
College of Science and Technology, Ningbo 1,000,000.00
University
Ningbo University Sports College Basketball
1,000,000.00
Team
Shanghai Charity Foundation 1,000,000.00
Other petty donations 1,317,424.80 536,559.52
Subtotal 193,224,919.52 62,500,296.94
52. Income tax expense
(1) Income tax expense
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Current income tax expense 696,800,556.63 589,710,229.89
Deferred income tax expense -24,792,095.68 -20,805,042.29
Total 672,008,460.95 568,905,187.60
Reconciliation between accounting profit and income tax expense
Unit: RMB
Item 2023 2022
Gross profit 4,536,334,952.36 3,754,456,143.17
Income tax expense based on
the applicable tax rate of the 680,450,242.85 563,168,421.48
Company as the parent
Effects of different tax rates of
54,734,255.39 87,944,503.29
subsidiaries
Effects of adjustments to
-11,123,948.89 237,402.68
income tax of the prior period
Effects of non-deductible costs,
1,269,258.03 793,597.28
expenses and losses
Effects of the utilization of
deductible losses on which
-1,887,198.57 -10,088,778.03
deferred income tax assets were
unrecognized in the prior period
Effects of deductible temporary
differences or losses on which
deferred income tax assets are 37,870,938.40 13,199,517.70
unrecognized in the current
period
Effect of over-deduction in the
calculation of the taxable
-89,305,086.26 -77,819,239.95
amount in relation to R&D
costs
Over-dedcution in the
calculation of the taxable
-8,530,236.85
amount in relation to fixed
assets in the fourth quarter
Income tax expense 672,008,460.95 568,905,187.60
229 / 266
Annual Report 2023
53. Other comprehensive income
√Applicable□Not applicable
For details of other comprehensive income after tax, please refer to “35. Other comprehensive
income” under “VII Notes to the Consolidated Financial Statements” of “Part X Financial Statements”
herein.
54. Cash flow statement items
(1) Cash flows from operating activities
Cash generated from other operating activities:
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Income from government subsidy 206,430,866.48 184,811,915.24
Deposit received 223,283,524.93 94,815,279.98
Interest income 45,509,126.14 76,560,589.37
Return of housing loan for
3,591,449.23 8,172,679.13
employees
Others 5,655,825.32 5,675,054.71
Total 484,470,792.10 370,035,518.43
Cash used in other operating activities:
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Out-of-pocket expense 842,934,130.51 982,834,528.81
Deposit payment 159,339,465.18 58,237,557.33
Donation expenditure 191,475,200.00 62,500,296.94
Housing loan for employees 1,130,000.00 3,821,203.62
Others 7,868,577.93 4,072,643.97
Total 1,202,747,373.62 1,111,466,230.67
(2) Cash flows from investing activities
Cash generated from important investing activities:
□Applicable√Not applicable
Cash used in important investing activities:
□Applicable√Not applicable
Cash generated from other investing activities:
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Redemption of investments such as
8,999,638,611.27 9,314,400,000.00
bank wealth management
Return of futures margin 76,930,219.61 298,315,309.31
Received interest on call money 1,000,000.00
Total 9,076,568,830.88 9,613,715,309.31
Cash used in other investing activities:
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Investment expenditure such as
11,958,753,025.00 10,321,800,000.00
bank wealth management
Payment for futures margin 93,800,000.00 293,700,000.00
230 / 266
Annual Report 2023
Total 12,052,553,025.00 10,615,500,000.00
(3) Cash flows from financing activities
Cash generated from other financing activities:
□Applicable√Not applicable
Cash used in other financing activities:
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Term deposits in pledge 200,000,000.00
Repayment of lease liabilities 12,347,289.52 13,844,786.80
Repurchase of share incentives 10,689,707.63 222,802,913.86
Total 223,036,997.15 236,647,700.66
Changes in liabilities incurred in financing activities:
□Applicable√Not applicable
55. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
√Applicable□Not applicable
Unit: RMB
Supplementary information 2023 2022
1. Reconciliation of net profit to net cash generated from/used in operating activities：
Net profit 3,864,326,491.41 3,185,550,955.57
Add: Asset impairment allowances 62,644,874.13 11,504,455.94
Credit impairment loss 61,075,301.86 30,470,523.21
Depreciation of fixed assets,
depletion of oil and gas assets, and
241,517,224.94 222,420,678.01
depreciation of productive living
assets
Amortization of right-of-use assets 13,680,373.05 14,110,005.67
Amortization of intangible assets 19,490,904.94 20,494,628.97
Amortization of long-term prepaid
8,201,353.62 8,006,255.46
expense
Loss on the disposal of fixed assets,
intangible assets and other long-term 5,484,474.02 3,139,686.69
assets (“-” for gain)
Loss on the retirement of fixed assets
130,259.28 841,203.58
(“-” for gain)
Loss on changes in fair value (“-” for
-18,200,000.00
gain)
Finance costs (“-” for income) -64,416,499.68 -30,687,370.90
Loss on investment (“-” for income) -198,690,784.99 -271,988,811.92
Decrease in deferred income tax
-40,590,894.26 -24,893,024.32
assets (“-” for increase)
Increase in deferred income tax
14,344,358.02 3,808,544.99
liabilities (“-” for decrease)
Decrease in inventories (“-” for
-153,504,804.57 100,544,363.75
increase)
Decrease in operating receivables
-25,388,458.25 -72,562,204.17
(“-” for increase)
Increase in operating payables (“-”
946,014,423.86 -220,315,149.21
for decrease)
231 / 266
Annual Report 2023
Others 91,163,501.17 77,469,476.84
Net cash generated from/used in
4,827,282,098.55 3,057,914,218.16
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 under finance leases
3. Net changes in cash and cash equivalents：
Closing balance of cash 1,332,186,205.30 1,925,343,174.98
Less: Opening balance of cash 1,925,343,174.98 2,552,716,453.54
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
-593,156,969.68 -627,373,278.56
equivalents
(2) Breakdown of cash and cash equivalents
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
I Cash 1,332,186,205.30 1,925,343,174.98
Of which: Cash on hand 14,467.69 34,167.84
Bank deposits that can be readily
1,275,537,060.14 1,890,294,692.17
drawn on demand
Other monetary assets that can be
56,634,677.47 35,014,314.97
readily drawn on demand
Deposits in the central bank that
can be used for payment
Deposits in banks and other
financial institutions
Borrowings from banks and other
financial institutions
II Cash equivalents
Of which: Bond investments that will be
due within three months
III Cash and cash equivalents, end of the
1,332,186,205.30 1,925,343,174.98
period
Of which: Restricted cash and cash
equivalents of the Company as the parent
and subsidiaries within the Group
(3) Items that were restricted in use but still presented as cash and cash equivalents
√Applicable□Not applicable
Unit: RMB
Item 2023 Reason
Raised funds can only be
Raised funds 554,934,817.54 used in raised funds invested
projects.
Total 554,934,817.54 /
232 / 266
Annual Report 2023
(4) Monetary assets that were not recorded in cash and cash equivalents
√Applicable□Not applicable
Unit: RMB
Item 2023 2022 Reason
With obtaining interest
Term deposits 3,272,753,025.00 2,545,000,000.00 income as the primary
purpose
Interest receivable Not in the Company’s
95,085,570.53 120,706,706.98
on term deposits account
Futures margins 40,681,592.44 13,774,515.95 Not withdrawable on demand
Security deposits for
3,008,032.39 7,141,771.63 Not withdrawable on demand
letters of guarantee
Total 3,411,528,220.36 2,686,622,994.56 /
Other notes:
√Applicable□Not applicable
Changes in liabilities incurred in financing activities:
Increase in the current period Decrease in the current period
Change
Item Opening balance Change in non- in non- Closing balance
Change in cash Change in cash
cash items cash
items
Short-term
845,374,749.03 1,055,972,102.34 27,415,774.51 1,340,418,449.87 588,344,176.01
borrowings
Long-term
borrowings
(inclusive of
the current 393,000,000.00 274,138.89 393,274,138.89
portion of
long-term
borrowings)
Lease
liabilities
(inclusive of
the current 13,343,277.35 17,432,440.44 12,347,289.52 18,428,428.27
portion of
lease
liabilities)
Total 858,718,026.38 1,448,972,102.34 45,122,353.84 1,352,765,739.39 1,000,046,743.17
56. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
√Applicable□Not applicable
Unit: RMB
Closing balance in Closing balance in
Item Exchange rate
foreign currency RMB
Monetary assets - - 24,775,126.37
Of which: USD 3,211,721.50 7.0827 22,747,659.87
EUR 257,587.74 7.8592 2,024,433.57
HKD 2,639.78 0.9062 2,392.17
GBP 13.9 9.0411 125.67
IDR 1,030,185.00 0.0005 515.09
Accounts receivable - - 26,367,296.92
Of which: USD 3,722,774.78 7.0827 26,367,296.92
233 / 266
Annual Report 2023
57. Leases
(1) As the lessor
Operating leases as the lessor:
√Applicable□Not applicable
Unit: RMB
Of which: Income related to
Item Lease income variable lease payments and not
included in lease receipts
Building space 921,857.68
Total 921,857.68
Operating leases as the lessor:
□Applicable√Not applicable
Reconciliation of undiscounted lease receipts to net investment in leases:
□Applicable√Not applicable
Undiscounted lease receipts for the next five years:
□Applicable√Not applicable
VIII R&D Expenditures
(1) Presented by nature of expenditure
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
Employee remuneration 406,595,244.35 355,037,509.43
Direct expenditures 197,805,013.87 170,137,510.77
Depreciation and amortization 13,096,686.15 13,144,547.42
Others 55,930,442.24 49,976,512.49
Total 673,427,386.61 588,296,080.11
Of which: expensed R&D expenditures 673,427,386.61 588,296,080.11
Capitalised R&D expenditures
IX Changes to the Scope of the Consolidated Financial Statements
1. Business combinations not involving entities under common control
□Applicable√Not applicable
(1) Business combinations not involving entities under common control in the current period
□Applicable√Not applicable
(2) Cost of acquisition and goodwill
□Applicable√Not applicable
(3) Identifiable assets and liabilities of acquirees on the date of acquisition
□Applicable√Not applicable
(4) Gains or losses arising from the remeasurement at fair value of equity interests held before the
dates of acquisition
Indicate whether there were business combinations which were achieved by stages and of which control
was obtained in the Reporting Period.
□Applicable√Not applicable
234 / 266
Annual Report 2023
(5) Inability to reasonably determine the acquisition consideration or the fair value of acquirees’
identifiable assets and liabilities at acquisition dates or the period-ends of the combinations
□Applicable√Not applicable
(6) Other notes
□Applicable√Not applicable
2. Business combinations involving entities under common control
□Applicable√Not applicable
(1) Business combinations involving entities under common control in the current period
□Applicable√Not applicable
(2) Cost of acquisition
□Applicable√Not applicable
(3) Fair value of assets and liabilities of acquirees on the date of acquisition
□Applicable√Not applicable
3. Counter-purchases
□Applicable√Not applicable
235 / 266
Annual Report 2023
4. Disposal of subsidiaries
Indicate whether there was any transaction or matter in the current period where the Company ceased to control a subsidiary.
□Applicable√Not applicable
Other notes:
□Applicable√Not applicable
Indicate whether Company ceased to control a subsidiary in multiple disposals of its investment in the subsidiary.
□Applicable√Not applicable
Other notes:
□Applicable√Not applicable
5. Changes to the scope of the consolidated financial statements due to other reasons
Changes to the scope of the consolidated financial statements due to other reasons (incorporation, liquidation, etc.)：
√Applicable□Not applicable
How the interest in the Time when the interest was The Company’s capital As % of the subsidiary’s total
Company name
subsidiary was obtained obtained contribution capital
Qiquanyang Trading Incorporated September 2023 RMB10,000 100.00%
Goneo Germany Incorporated May 2023 EUR25,000 100.00%
Goneo Indonesia Incorporated November 2023 100.00%
Goneo Singapore Incorporated October 2023 100.00%
On 5 September 2023, Qiquanyang Trading completed the business registration procedures, and obtained a business license with a unified social credit code of
91330282MACU320T5A, with a registered capital of RMB10 million, and a 100% shareholding by the Company’s subsidiary Information Technology, which
incorporated it. As at 31 December 2023, Information Technology’s paid-up capital contribution was RMB10,000. Therefore, since the date of its establishment,
Qiquanyang Trading has been included in the scope of the consolidated financial statements.
Goneo Germany was incorporated in Frankfurt, Germany in 22 May 2023 with a registered capital of EUR25,000 and a 100% shareholding by Goneo HK. As at
31 December 2023, Goneo HK’s paid-up capital contribution was EUR25,000. Therefore, since the date of its establishment, Goneo Germany has been included in
the scope of the consolidated financial statements.
236 / 266
Annual Report 2023
Goneo Singapore was incorporated in Singapore on 20 October 2023 with a 100% shareholding by Goneo HK and a registered capital of USD50,000. As at 31
December 2023, Goneo HK’s paid-up capital contribution was nil. Since the date of its establishment, Goneo Singapore has been included in the scope of the
consolidated financial statements.
Goneo Indonesia was incorporated in Indonesia on 17 November 2023 with a registered capital of USD2.1021 million. It was incorporated with joint investments
from the Company’s subsidiaries Goneo HK and Goneo Singapore, with a 90% shareholding by Goneo HK and the rest 10% by Goneo Singapore. As at 31 December
2023, the paid-up capital contributions of Goneo HK and Goneo Singapore were both nil. Since the date of its establishment, Goneo Indonesia has been included in
the scope of the consolidated financial statements.
6. Others
□Applicable√Not applicable
237 / 266
Annual Report 2023
X Interests in Other Entities
1. Interests in subsidiaries
(1) Subsidiaries
√Applicable□Not applicable
Unit: RMB’0,000
Principal The Company’s How the
Registered Place of Nature of interest
Subsidiary place of subsidiary
capital registration business
business Direct Indirect was obtained
Combination
Ningbo, Ningbo, Manufacturing under
Ningbo Goneo 10,000 100.00
Zhejiang Zhejiang industry common
control
Goneo Ningbo, Ningbo, Manufacturing
1,000 100.00 Incorporated
Photoelectricity Zhejiang Zhejiang industry
Ningbo, Ningbo, Manufacturing
Goneo Digital 1,000 100.00 Incorporated
Zhejiang Zhejiang industry
Banmen
Ningbo, Ningbo, Manufacturing
Electrical 1,034.70 100.00 Incorporated
Zhejiang Zhejiang industry
Appliances
Goneo
Ningbo, Ningbo, Manufacturing
Precision 10,000 100.00 Incorporated
Zhejiang Zhejiang industry
Manufacturing
Combination
Ningbo, Ningbo, under
Electric Sales 10,000 Commercial 100.00
Zhejiang Zhejiang common
control
Combination
Ningbo, Ningbo, under
Cixi Goneo 3,066 Commercial 100.00
Zhejiang Zhejiang common
control
Combination
Shanghai under
Shanghai 3,800 Shanghai Commercial 100.00
Goneo common
control
Goneo Ningbo, Ningbo,
10,000 Commercial 100.00 Incorporated
Management Zhejiang Zhejiang
Goneo
Ningbo, Ningbo,
International 1,000 Commercial 100.00 Incorporated
Zhejiang Zhejiang
Trade
Combination
Hong Kong under
Hong Kong Hong Kong Commercial 100.00
Goneo common
control
Combination
Xingluo Ningbo, Ningbo, under
500 Commercial 100.00
Trading Zhejiang Zhejiang common
control
Goneo Low
Voltage Ningbo, Ningbo,
2,000 Commercial 100.00 Incorporated
Electric Zhejiang Zhejiang
Electrical
Household
Ningbo, Ningbo, Manufacturing
Electrical 1,000 100.00 Incorporated
Zhejiang Zhejiang industry
Appliances
Hainan Sanya, Sanya, Commercial
1,000 100.00 Incorporated
Dacheng Hainan Hainan services
Intelligent Ningbo, Ningbo, Manufacturing
1,000 100.00 Incorporated
Technology Zhejiang Zhejiang industry
Combination
not under
Dalitek Shanghai 1,500 Shanghai Commercial 70.00
common
control
238 / 266
Annual Report 2023
Information
Shanghai 10,000 Shanghai Commercial 100.00 Incorporated
technology
Ningbo, Ningbo,
Goneo Tools 3,840 Commercial 62.00 Incorporated
Zhejiang Zhejiang
Goneo New Ningbo, Ningbo,
1,000 Commercial 100.00 Incorporated
Energy Zhejiang Zhejiang
Murora Manufacturing
Guangdong 10,000 Guangdong 100.00 Incorporated
Intelligent industry
Shenzhen Manufacturing
Shenzhen 1,000 Shenzhen 100.00 Incorporated
Intelligent industry
Goneo Ningbo, Ningbo,
1,000 Commercial 100.00 Incorporated
Marketing Zhejiang Zhejiang
Notes of shareholding percentage in subsidiaries different from voting percentage:
None.
Basis of holding half or less voting rights but still controlling the investee and holding more than half of
the voting rights but not controlling the investee:
None.
Basis of controlling significant structural entities incorporated in the scope of combination:
None.
Basis of determining whether the Company is the agent or the mandator
None.
(2) Substantial non-wholly-owned subsidiaries
√Applicable□Not applicable
Unit: RMB
Net profit or loss
Declared dividends Closing balance
attributable to non-
Non-controlling for non-controlling of non-
Subsidiary controlling
interests interests in the controlling
interests in the
current period interests
current period
Dalitek 30.00% -4,385,637.44 12,112,829.51
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
□Applicable√Not applicable
Other notes:
□Applicable√Not applicable
(3) Key financial information of substantial non-wholly-owned subsidiaries
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Subs Curre Non- Curre Non-
idiar Curre Non- Total Curre Non- Total
Total nt current Total nt current
y nt current liabilit nt current liabilit
assets liabilit liabiliti assets liabilit liabiliti
assets assets ies assets assets ies
ies es ies es
54,16 4,311 58,47 17,84 252, 18,09 70,44 7,160 77,60 19,94 2,661 22,60
Dalit
0,179. ,638. 1,817. 2,776. 943. 5,719. 4,095. ,779. 4,874. 8,974. ,009. 9,984.
ek
57 29 86 42 07 49 63 01 64 82 99 81
2023 2022
Subsidi Net cash Net cash
Operating Total Operating Total
ary Net profit generated Net profit generated
revenue comprehen revenue comprehen
from/use from/use
239 / 266
Annual Report 2023
sive d in sive d in
income operating income operating
activities activities
- - - - - -
43,910,71 53,135,96
Dalitek 14,618,79 14,618,791 8,096,766 10,528,76 10,528,764 4,681,119
7.81 8.72
1.46 .46 .95 4.40 .40 .04
XI Government Grants
1. Government grants recognized at the receivable amount at the period-end
□Applicable√Not applicable
Reasons for not receiving the expected government grant at the expected time:
□Applicable√Not applicable
2. Liabilities associated with government grants
√Applicable□Not applicable
Unit: RMB
Amount
recorde
Other
Increase in d in
Financi Transferre chang
the non-
al d to other es in Related to
Opening government operatin Closing
stateme income in the assets/inco
balance grant in the g balance
nt line the current curren me
current income
item period t
period in the
period
current
period
Deferre
53,820,328. 17,030,000. 2,432,857. 68,417,470. Related to
d
00 00 14 86 assets
income
53,820,328. 17,030,000. 2,432,857. 68,417,470.
Total /
00 00 14 86
3. Government grants recorded in profit or loss
√Applicable□Not applicable
Unit: RMB
Type 2023 2022
Related to income 191,833,723.62 130,991,587.24
Total 191,833,723.62 130,991,587.24
XII Risks Related to Financial Instruments
1. Risks on financial instruments
√Applicable□Not applicable
The Company is engaged in risk management to achieve balance between risks and returns,
minimizing the negative effects of risks on its operation performance and maximizing the interests of its
shareholders and other equity investors. Based on that risk management goal, the fundamental strategy of
its risk management is to identify and analyse various risks facing the Company, establish an appropriate
risk bottom line, carry out risk management and monitor various risks in a timely and reliable manner to
control them within a restricted scope.
The Company faces various risks related to financial instruments in its routine activities, mainly
including credit risk, liquidity risk market risk. The management has reviewed and approved the policies
of managing those risks, which are summarised as follows.
(I) Credit risk
240 / 266
Annual Report 2023
Credit risk means the risk of financial losses incurred to the other party when one party of a financial
instrument is unable to fulfil its obligations.
1. Practices of credit risk management
(1) Methods for evaluating credit risk
On each balance sheet date, the Company shall evaluate whether the credit risk of relevant financial
instruments has increased significantly since the initial recognition. After determining whether the credit
risk has increased significantly since the initial recognition, the Company shall consider obtaining
reasonable and reliable information without paying unnecessary extra costs or efforts, including qualitative
and quantitative analysis based on historical data, external credit risk rating and forward-looking
information. On the basis of the single financial instrument or combination of financial instruments with
similar credit risk characteristics, the Company compares the risk of default of financial instruments on
the balance sheet date with the risk of default on the initial recognition date to determine the change of
default risk of financial instruments during their expected duration.
When one or more of the following quantitative and qualitative criteria prevails, the Company shall
believe the credit risk of financial instruments has increased significantly:
1) The quantitative criteria are mainly that the probability of default in the remaining period at the
balance sheet date increases by more than a certain percentage from the time of initial recognition;
2) The qualitative criteria are mainly material adverse changes in the debtor’s operating or financial
status, changes in the existing or expected technical, market, economic or legal environment that will have
a material adverse impact on the debtor’s ability to repay the Company.
(2) Definition of default and asset with credit impairment
When a financial instrument meets one or more of the following conditions, the Company shall define
the financial asset as having defaulted, and its criteria are consistent with the definition of having incurred
credit impairment:
1) The debtor has major financial difficulties;
2) The debtor violates the binding clauses of the contract against the debtor;
3) The debtor is likely to go bankrupt or undergo other financial restructuring;
4) The creditor, out of economic or contractual considerations related to the debtor’s financial
difficulties, gives concessions to the debtor which would not have been made in any other circumstances.
2. Measurement of expected credit losses
The key parameters for measuring expected credit loss included default probability, loss given default
and exposure at default. The Company considered quantitative analysis and forward-looking information
of historical statistical data (such as counterparty rating, guarantee method, repayment method, etc.) to
establish a model of probability of default, default loss ratio and default risk exposure.
3. For details of the reconciliation statements of opening balance and closing balance of financial
instrument loss provision, please refer to “4. Notes receivable”, “5. Accounts receivable”, “6. Receivables
financing”, and “8. Other receivables” under “VII Notes to the Consolidated Financial Statements” of
“Part X Financial Statements” herein.
4. Credit risk exposure and credit risk concentrations
The Company’s credit risk mainly comes from monetary assets and accounts receivable. To control
the aforementioned relevant risks, the Company has adopted the following measures.
(1) Monetary assets
The Company places the bank deposit and its monetary assets with financial institutions of high credit
ratings. Thus, its credit risk is low.
(2) Accounts receivable
The Company continuously conducted credit assessments for customers who trade on credit lines.
Based on the credit assessment result, the Company chooses to trade with recognised customers with good
credit and monitor the balance of the accounts receivable from them to ensure that the Company will not
face any significant bad debt risk.
Due to the Company merely trades with the authorised third party with good credit, the guarantee is
not required. Credit risk concentration is managed in accordance with the customers. As at 31 December
2023, there were certain credit concentration risks in the Company, and 41.28% of the accounts receivable
of the Company (44.01% on 31 December 2022) came from the top 5 customers by balance. The Company
hasn’t held any guarantee or other credit enhancement for accounts receivable and contract assets.
The maximum credit risk exposure the Company undertook shall be the carrying value of each
financial asset on balance sheet.
(II) Liquidity risk
241 / 266
Annual Report 2023
Liquidity risk refers to the risk of fund shortage occurring when the Company fulfils the settlement
obligation in the mode of cash delivery or other financial assets. Liquidity risk may originate from the
failure to sell financial assets at fair value as soon as possible; or from the other party’s failure to pay off
its contractual debts; or from the earlier maturity of debts; or from the failure to generate the expected cash
flow.
To control the risk, the Company comprehensively used a variety of financing methods such as bank
clearing and bank borrowing, and adopted the appropriate combination of long-term and short-term
financing methods to optimise the financing structure and maintain a balance between financing
sustainability and flexibility. The Company has obtained the line of credit from a number of commercial
banks to satisfy its operation fund needs and capital expenditure.
Financial liabilities classified by remaining maturity:
As at the end of the current period
Item Undiscounted contract Over 3
Carrying amount Within 1 year 1-3 years
amount years
Bank borrowings 981,618,314.90 992,128,718.24 992,128,718.24
Held-for-trading
financial liabilities
Accounts payable 2,056,657,805.40 2,056,657,805.40 2,056,657,805.40
Other payables 705,060,906.64 705,060,906.64 705,060,906.64
Current portion of
non-current 13,685,200.88 14,116,740.15 14,116,740.15
liabilities
Lease liabilities 4,743,227.39 4,788,785.53 4,788,785.53
Subtotal 3,761,765,455.21 3,772,752,955.96 3,767,964,170.43 4,788,785.53
(Continued)
As at the end of the prior period
Item Undiscounted Over 3
Carrying amount Within 1 year 1-3 years
contract amount years
Bank borrowings 845,374,749.03 857,063,545.21 857,063,545.21
Held-for-trading
financial 18,200,000.00 18,200,000.00 18,200,000.00
liabilities
Accounts payable 1,643,661,963.53 1,643,661,963.53 1,643,661,963.53
Other payables 446,413,870.85 446,413,870.85 446,413,870.85
Current portion of
non-current 8,798,658.13 9,116,363.36 9,116,363.36
liabilities
Lease liabilities 4,544,619.22 4,668,943.91 4,668,943.91
Subtotal 2,966,993,860.76 2,979,124,686.86 2,974,455,742.95 4,668,943.91
(III) Market risk
Market risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments arising from changes in market prices. Market risk mainly includes interest rate risk and
foreign exchange risk.
1. Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments arising from changes in market interest rates. Interest-bearing financial instruments with fixed
interest rates may bring the fair value interest rate risk to the Company, while those with floating interest
242 / 266
Annual Report 2023
rate may bring the cash flow interest rate risk to the Company. The Company will determine the proportion
between the financial instruments with fixed interest rate and those with floating interest rate in
combination with market environment, and maintain an appropriate portfolio of financial instruments
through regular review and monitoring. The interest rate risk of cash flows facing the Company is mainly
related to the bank loans calculated by floating interest rate of the Company.
As at 31 December 2023, the Company had no borrowings with floating income, and the interest rate
change would not have a significant influence on the Company’s gross profit and shareholders’ equity.
2. Foreign exchange risk
Foreign exchange risk refers to the risk that may lead to the changes of fair value of financial
instruments or future cash flows due to fluctuation in exchange rate. The Company operates in mainland
China, and the main activities are recorded by RMB. Thus, the foreign exchange market risk undertaken
is insignificant for the Company.
For details of the Company’s foreign currency monetary assets and liabilities at the end of the Current
Period, please refer to “56. Monetary items denominated in foreign currencies” under “VII Notes to the
Consolidated Financial Statements” of “Part X Financial Statements” herein.
2. Hedges
(1) The Company conducts hedging operations for risk management
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The Company used commodity future contracts to hedge the expected bulk-purchase of raw materials
of copper and plastic particles to avoid the risk of fluctuations in the future cash flows caused by the
fluctuations in the price of raw materials.
The Company's specific hedging methods are described below:
Expected bulk-purchase of raw materials such as copper and plastic
Hedged items
particles
Hedge instruments Commodity future contracts
Commodity future purchase contracts locked in changes of price in
Hedging method
expected raw materials bulk-purchase contract
Both the hedging instruments (commodity futures contracts) and the hedged items (expected bulk-
purchase of raw materials) are based on variables such as copper and plastic prices. The Company, guided
by the Group Purchasing Decision Committee and based on actual raw material demand for production,
conducts hedging to safeguard against price fluctuations effectively. The aforementioned hedging is highly
effective. Cash flow hedging is adopted for such hedging activities.
Additionally, the Company, in accordance with its risk management strategy, hedges certain raw
materials such as silver, aluminium, and tin. However, due to factors such as quantity conversion, the
hedging may not be highly effective after futures closing, resulting in ineffective hedging portions being
included in investment income.
As of 31 December 2023, the amount of futures margin occupied by the Company reported under
other monetary funds was RMB40,681,592.44. The commodity futures contracts purchased by the
Company were reported under derivative financial assets, with a fair value of RMB8,263,755.00 at the
end of the period. The Company recognised pre-tax gains from fair value changes of cash flow hedging
instruments included in other comprehensive income of RMB14,235,257.77, which is expected to
gradually transfer to the Company's profit and loss statement during subsequent raw material procurement
periods.
243 / 266
Annual Report 2023
In 2023, due to hedging, the Company recognised operating costs of RMB7,739,285.00 in the profit
and loss statement, and ineffective hedging of silver, aluminium, and tin accounted for RMB7,786,015.00
in investment income.
(2) The Company conducts qualifying hedging operations and applies hedge accounting
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3) The Company conducts hedging operations for risk management, expects to achieve its risk
management objectives, but does not apply hedge accounting.
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
3. Transfer of financial assets
(1) Classification of transfer methods
□Applicable √Not applicable
(2) Financial assets derecognised due to transfer
□Applicable √Not applicable
(3) Transferred financial assets that continue to be involved
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
XIII Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
√Applicable□Not applicable
Unit: RMB
Closing fair value
Level 1 fair Level 2 fair
Item Level 3 fair value
value value Total
measurement
measurement measurement
I Continuous fair value
measurement
(I) Held-for-trading
8,263,755.00 9,782,624,494.41 9,790,888,249.41
financial assets
1. Financial assets at fair
value through profit or
loss
(1) Debt investments
(2) Equity investments
(3) Derivative financial 8,263,755.00 8,263,755.00
assets
(4) Bank’s wealth
management and other 9,727,000,000.00 9,727,000,000.00
products
(5) Receivables financing 5,359,014.96 5,359,014.96
(6) Other current assets 50,265,479.45 50,265,479.45
244 / 266
Annual Report 2023
2. Designated financial
assets at fair value through
profit or loss
(1) Debt investments
(2) Equity investments
(II) Other debt
investments
(III) Other equity
investments
(IV) Investment property
1. Land use rights for
rental
2. Buildings for rental
3. Land use rights held for
the purpose of sale for
appreciation
(V) Living assets
1. Consumptive living
assets
2. Productive living assets
Total assets continuously
measured at fair value 8,263,755.00 9,782,624,494.41 9,790,888,249.41
(VI) Held-for-trading
financial liabilities
1. Financial liabilities at
fair value through profit or
loss
Of which: Trading bonds
issued
Derivative
financial liabilities
Others
2. Designated financial
liabilities at fair value
through profit or loss
Total liabilities
continuously measured
at fair value
II Non-continuous fair
value measurement
(I) Assets held for sale
Total assets not
continuously measured
at fair value
Total liabilities not
continuously measured
at fair value
2. Basis for determining the market prices of continuous and non-continuous Level 1 fair value
measurement items
√Applicable□Not applicable
The Company’s Level 1 fair value measurement items were derivative financial assets (futures
contracts), of which the fair value was determined based on the open quotations in the futures market.
3. Continuous and non-continuous Level 2 fair value measurement items, valuation techniques used,
and the qualitative and quantitative information of important parameters
□Applicable √Not applicable
245 / 266
Annual Report 2023
4. Continuous and non-continuous Level 3 fair value measurement items, valuation techniques used,
and the qualitative and quantitative information of important parameters
√Applicable□Not applicable
As the bank’s wealth management products, trust products, etc. held by the Company had lower
expected rates of return and smaller changes in fair value, their fair value was determined at their initially
recognised costs.
The estimated fair value of structured deposits held by the Company was based on the principal
amount and interest accrued at a determined rate.
Receivables financing held by the Company are measured at the face amount as a reasonable estimate
of fair value.
5. Continuous and non-continuous Level 3 fair value measurement items, information on the
adjustment between the opening and closing carrying amounts, and sensitivity analysis of
unobservable parameters
□Applicable √Not applicable
6. If a continuous fair value measurement item was converted between levels for the current period,
the reasons for such conversion and the policies for determining the conversion point
□Applicable √Not applicable
7. Valuation technique changes incurred in the current period and the reasons for such changes
□Applicable √Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
□Applicable √Not applicable
9. Others
□Applicable √Not applicable
XIV Related Parties and Related-party Transactions
1. The Company’s parent company
√Applicable□Not applicable
Unit: RMB’0,000
The parent
Name of the The parent
company’s
Company’s Place of Nature of Registered company’s voting
shareholding
parent registration business capital right percentage
percentage in
company in the Company
the Company
Liangji Ningbo,
Investment 50,000 53.79 53.79
Industrial Zhejiang
Notes to the Company’s parent company:
Ruan Liping and Ruan Xueping are the joint actual controllers of the Company, and the two jointly
hold 100% of Liangji Industrial, 53.79% of the equity of the Company through Liangji Industrial, directly
hold 30.24% of the equity of the Company, and indirectly holds 0.68% of the voting rights of the Company
through Ningbo Ninghui Investment Management Partnership (Limited Partnership).
The ultimate controllers of the Company are Ruan Liping and Ruan Xueping.
246 / 266
Annual Report 2023
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are in the notes
√Applicable □Not applicable
The Company’s subsidiaries are detailed in “1. Interests in subsidiaries” under “X Interests in Other
Entities” of “Part X Financial Statements” herein.
3. Joint ventures and associated enterprises of the Company
Details of joint ventures and associated enterprises of the Company are in the notes
□Applicable√Not applicable
The following are the circumstances of other joint ventures or associated enterprises that have a balance
with the Company for the current period or that have formed balances from related-party transactions with
the Company for the previous period
□Applicable√Not applicable
Other notes
□Applicable√Not applicable
4. Other related party
√Applicable□Not applicable
Name of other related party Relationship with the Company
Shenghui Electronics A company controlled by Liangji Industrial
Goneo Property A company controlled by Liangji Industrial
Actual controller Ruan Liping holds 30% of the shares,
Minshen Property and actual controller Ruan Xueping holds 20% of the
shares
A company controlled by the actual controller, Ruan
Liangniu Hardware Liping’s wife’s brother Pan Minfeng and his wife Xu
Yirong
A company controlled by the actual controller, Ruan
Hangniu Hardware Liping’s wife’s brother Pan Minfeng and his wife Xu
Yirong
The actual controller Ruan Liping’s wife’s brother Pan
Minfeng and his wife Xu Yirong’s son Pan Qianliang
Feiniu Hardware
holds 55% of the shares, and Xu Yirong holds 45% of
the shares
A company controlled by Sun Xiaoping, spouse of
Kunshan Gaoshu
Ruan Xueping, the actual controller
Ruan Shuhong Daughter of the actual controller Ruan Liping
A company controlled by Zhu Huning, the spouse of
Jiangcheng Industrial Ruan Shuhong, daughter of Ruan Liping, the actual
controller
A company controlled by Yu Shoufu, father of Director
Niuweiwang Trading
Cai Yingfeng’s daughter’s spouse
An entity controlled by Cai Libo, sister of Director Cai
Cixi Libo
Yingfeng
A company controlled by the Ying Jianguo, brother-in-
Jianke Trading
law of Director Cai Yingfeng
A company controlled by Ying Jianguo, brother-in-law
Guoxin Trading
of Director Cai Yingfeng
Zhang Meina, sister of Senior Executive Zhang Lina,
Yaoyang Trading
holds 100% of the shares
Xu Yanhao, son of Zhang Meina, sister of Senior
Huantian Trading
Executive Zhang Lina, holds 32% of the shares
A company controlled by the siblings of the spouse of
Qiudi Trading
Senior Executive Li Guoqiang
A company controlled by Xia Zhonggui, brother of
Chenhao Electronics
Supervisor Li Yu’s spouse, and his spouse Zeng Minhui
247 / 266
Annual Report 2023
5. Related-party transactions
(1) Related-party transactions involving purchase and sale of goods, as well as receipt and rendering
of services
Purchases of goods/receipt of services:
□Applicable√Not applicable
Sale of goods/rendering of services:
√Applicable□Not applicable
Unit: RMB
Related party Contents of transaction 2023 2022
Adapters, wall switches, LEDs,
Hangniu Hardware 40,461,383.23 36,858,578.23
digital accessories
Adapters, wall switches, LEDs,
Liangniu Hardware 14,005,203.73 13,079,962.46
digital accessories
Feiniu Hardware Adapters, digital accessories 1,479,757.39 1,481,704.60
Subtotal of Hangniu
55,946,344.35 51,420,245.29
Hardware
Guoxin Trading Adapters, LEDs, digital accessories 12,578,951.10 7,242,317.55
Jianke Trading Adapters, LEDs, digital accessories 917.43 3,625,007.82
Subtotal of Guoxin
12,579,868.53 10,867,325.37
Trading
Niuweiwang Trading Adapters, LEDs 24,592,948.77 21,583,182.90
Cixi Libo Adapters, LEDs, digital accessories 14,240,501.18 12,230,224.20
Huantian Trading Adapters, LEDs, digital accessories 13,575,262.69 14,088,847.19
Qiudi Trading Adapters, LEDs, digital accessories 8,060,800.82 5,174,741.27
Chenhao Electronics Digital accessories, adapters 1,420,756.10 1,116,890.54
Adapters, wall switches, LEDs,
Kunshan Gaoshu 167,924.26
digital accessories
Adapters, wall switches, LEDs,
Minshen Property 79,392.18 252,151.56
digital accessories
Adapters, wall switches, LEDs,
Jiangcheng Industrial 14,380.89
digital accessories
Goneo Property Illuminaries 9,611.57
Total 130,687,791.34 116,733,608.32
Notes to related-party transactions involving purchase and sale of goods, as well as receipt and rendering
of services:
□Applicable√Not applicable
(2) Management entrustment and contracting between the Company and related parties
The Company as the trustee of management/contractor:
□Applicable√Not applicable
Notes to related-party transactions with the Company as the trustee of management/contractor:
□Applicable√Not applicable
The Company as the trustor of management/contractee:
□Applicable√Not applicable
Notes to related-party transactions with the Company as the trustor of management/contractee:
□Applicable√Not applicable
(3) Leases between the Company and related parties
The Company as the lessor:
□Applicable√Not applicable
248 / 266
Annual Report 2023
The Company as the lessee:
√Applicable□Not applicable
Unit: RMB
Variable lease
Rental expense of
payments that are not
simplified short-term
covered in the Interest expense on Added right-of-use
Type of the leases and low-value Rent payable
Lessor measurement of the lease liabilities borne assets
leased asset asset leases (if
lease liabilities (if
applicable)
applicable)
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Ruan Buildings and
959,138.91 798,806.97 46,722.44 29,123.59
Shuhong constructions
Shenghui Buildings and
233,539.20
Electronics constructions
Notes to leases between the Company and related parties:
□Applicable√Not applicable
249 / 266
Annual Report 2023
(4) Guarantees between the Company and related parties
The Company as the guarantor:
□Applicable√Not applicable
The Company as the guaranteed party:
□Applicable√Not applicable
Notes to guarantees between the Company and related parties:
□Applicable√Not applicable
(5) Loans between the Company and related parties
□Applicable√Not applicable
(6) Asset transfers and debt restructuring involving related parties
□Applicable√Not applicable
(7) Remuneration of key management
√Applicable□Not applicable
Unit: RMB’0,000
Item 2023 2022
Remuneration of key management 3,397.19 2,507.90
(8) Other related-party transactions
□Applicable√Not applicable
6. Amounts due from and to related parties
(1) Amounts due from related parties
□Applicable√Not applicable
(2) Amounts due to related parties
√Applicable □Not applicable
Unit: RMB
Closing gross
Item Related party Opening gross amount
amount
Contract liabilities Guoxin Trading 1,024,406.47 527,657.82
Contract liabilities Hangniu Hardware 891,269.85 2,387,446.01
Contract liabilities Huantian Trading 628,223.79 234,326.66
Contract liabilities Liangniu Hardware 375,514.78 126,617.06
Contract liabilities Cixi Libo 220,379.32 437,257.56
Contract liabilities Qiudi Trading 193,819.28 3,955.24
Contract liabilities Niuweiwang Trading 191,186.78 883,947.33
Contract liabilities Goneo Property 42,521.60
Contract liabilities Chenhao Electronics 5,232.07 245.67
Contract liabilities Yaoyang Trading 3,461.19 3,461.19
Contract liabilities Feiniu Hardware 3,004.00 90,790.88
Contract liabilities Jianke Trading 194,410.70
Subtotal 3,579,019.13 4,890,116.12
Other payables Liangniu Hardware 70,000.00 70,000.00
Other payables Hangniu Hardware 70,000.00 70,000.00
Other payables Feiniu Hardware 20,000.00 20,000.00
Subtotal of Hangniu
Other payables 160,000.00 160,000.00
Hardware
Other payables Yaoyang Trading 30,000.00 30,000.00
Other payables Chenhao Electronics 30,000.00 20,000.00
Other payables Cixi Libo 30,000.00 30,000.00
250 / 266
Annual Report 2023
Other payables Qiudi Trading 23,000.00 23,000.00
Other payables Huantian Trading 20,000.00 20,000.00
Other payables Guoxin Trading 20,000.00 20,000.00
Other payables Niuweiwang Trading 20,000.00 20,000.00
Subtotal 333,000.00 323,000.00
(3) Other items
□Applicable √Not applicable
7. Commitments involving related parties
□Applicable √Not applicable
8. Others
□Applicable √Not applicable
XV Share-based Payments
1. Equity instruments
√Applicable□Not applicable
Quantity unit: Share Currency unit: RMB
Granted in the current Exercised in the Unlocked in the current Lapsing in the current
Type of
period current period period period
awardee
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Management 2,189,848 107,193,059.60 1,287,648 53,754,080.03 243,784 10,689,610.19
Total 2,189,848 107,193,059.60 1,287,648 53,754,080.03 243,784 10,689,610.19
Issued and outstanding share options or other equity instruments at the period-end:
□Applicable √Not applicable
2. Equity-settled share-based payments
√Applicable □Not applicable
Unit: RMB
Method of determining the fair value of equity The fair value of restricted shares is the closing
instruments at the date of grant price at the date of grant
Important parameters for the fair value of equity The fair value of restricted shares is the closing
instruments at the date of grant price at the date of grant
Basis for determining the number of exercisable Number of persons expected to exercise
equity instruments multiplied by the number of grants per person
Reasons for significant differences between
No
current and prior period estimates
Cumulative amount of equity-settled share-based
230,319,626.77
payments recorded in capital reserves
Other notes:
(1) Restricted Share Incentive Plan in 2020
According to the resolutions of the 12th Meeting of the 1st Board of Directors of the Company and
the 2019 Annual General Meeting, the Company granted 613,800 restricted shares to 441 employees who
met the conditions for the grant at a price of RMB76.13 per share on 3 June 2020.
The main performance appraisal requirements for restricted shares: For the first release period, the
performance appraisal target was the operating revenue or net profit attributable to the shareholders of the
listed company in 2020 was not less than the average of the previous three fiscal years (i.e. 2017 - 2019);
for the second release period, the performance appraisal target was the operating revenue or net profit
attributable to the shareholders of the listed company in 2021 was not lower than the average of the
previous three fiscal years (i.e. 2018 - 2020); for the third release period, the performance appraisal target
was the operating revenue or net profit attributable to the shareholders of the listed company in 2022 was
not lower than the average of the previous three fiscal years (i.e. 2019 - 2021).
251 / 266
Annual Report 2023
In 2023, the Company’s Restricted Share Incentive Plan in 2020 recognised equity incentive
expenses of RMB1,872,164.21. As of 31 December 2023, all the restricted shares under the Restricted
Share Incentive Plan in 2020 had been unlocked.
(2) Restricted Share Incentive Plan in 2021
According to the resolutions of the 5th Meeting of the 2nd Board of Directors of the Company and
the 2020 Annual General Meeting, the Company granted 668,400 restricted shares to 523 employees who
met the conditions for the grant at a price of RMB88.15 per share on 4 June 2021.
The main performance appraisal requirements for restricted shares: For the first release period, the
performance appraisal target was the operating revenue or net profit attributable to the shareholders of the
listed company in 2021 was not less than 110% of the average of the previous three fiscal years (i.e. 2018
- 2020); for the second release period, the performance appraisal target was the operating revenue or net
profit attributable to the shareholders of the listed company in 2022 was not less than 110% of the average
of the previous three fiscal years (i.e. 2019 - 2021); for the third release period, the performance appraisal
target was the operating revenue or net profit attributable to the shareholders of the listed company in 2023
was not less than 110% of the average of the previous three fiscal years (i.e. 2020 - 2022).
In 2023, the Company’s Restricted Share Incentive Plan in 2020 recognised equity incentive
expenses of RMB9,611,450.86.
(3) Restricted Share Incentive Plan in 2022
According to the resolutions of the 10th and 12th Meeting of the 2nd Board of Directors of the
Company and the 2021 Annual General Meeting, the Company implemented the restricted share Incentive
Plan with shares of the Company’s common stock repurchased from the secondary market. The Company
granted 1,501,800 restricted shares to 646 employees who met the conditions for the grant at a price of
RMB63.06 per share on 20 May 2022.
The main performance appraisal requirements for restricted shares in 2022: For the first release
period, the performance appraisal target was the operating revenue or net profit attributable to the
shareholders of the listed company in 2022 was not less than 110% of the average of the previous three
fiscal years (i.e. 2019 - 2021); for the second release period, the performance appraisal target was the
operating revenue or net profit attributable to the shareholders of the listed company in 2023 was not less
than 110% of the average of the previous three fiscal years (i.e. 2020 - 2022); for the third release period,
the performance appraisal target was the operating revenue or net profit attributable to the shareholders of
the listed company in 2024 was not less than 110% of the average of the previous three fiscal years (i.e.
2021 - 2023).
In 2023, the Company’s Restricted Share Incentive Plan in 2022 recognised equity incentive
expenses of RMB39,869,660.23.
(4) Restricted Share Incentive Plan in 2023
According to the resolutions of the 18th Meeting of the 2nd Board of Directors of the Company and
the 2022 Annual General Meeting, the Company granted 2,189,848 restricted shares to 750 employees
who met the conditions for the grant at a price of RMB48.95 per share on 9 June 2023.
The main performance appraisal requirements for restricted shares in 2023: For the first release
period, the performance appraisal target was the operating revenue or net profit attributable to the
shareholders of the listed company in 2023 was not less than 110% of the average of the previous three
fiscal years (i.e. 2020 - 2022); for the second release period, the performance appraisal target was the
operating revenue or net profit attributable to the shareholders of the listed company in 2024 was not less
than 110% of the average of the previous three fiscal years (i.e. 2021 - 2023); for the third release period,
the performance appraisal target was the operating revenue or net profit attributable to the shareholders of
the listed company in 2025 was not less than 110% of the average of the previous three fiscal years (i.e.
2022 - 2024).
In 2023, the Company’s restricted Share Incentive Plan in 2023 recognised equity incentive expenses
of RMB39,810,225.87.
3. Cash-settled share-based payments
□Applicable√Not applicable
4. Share-based payments in the current period
√Applicable □Not applicable
Unit: RMB
Type of awardee Equity-settled share-based Cash-settled share-based
252 / 266
Annual Report 2023
payments payments
Management 91,163,501.17
Total 91,163,501.17
5. Modification and termination of share-based payments
□Applicable√Not applicable
6. Others
√Applicable □Not applicable
On 23 April 2020, the Company held the 11th Meeting of the 1st Board of Directors, where the
Special Talent Shareholding Plan (hereinafter referred to as the “shareholding plan”) was deliberated and
adopted, which granted shares of the Shareholding Plan to eligible employees of the Company. The
number of people involved included supervisors, specially introduced talents and talents with special
contribution. The source of funds for the shareholding plan is the special fund of the shareholding plan
accrued by the Company, and the total amount is RMB50 million. The total number of shares in the
shareholding plan is 50 million, with an amount of RMB1 per share.
As of 31 December 2023, the Company had granted 40,425,393 shares under the shareholding plan,
with 9,574,607 ungranted shares. The Company presents the granted share of the plan as the long-term
prepaid expense, confirmed the amortisation of expense by the evaluation period, and presents the portion
not granted as the other non-current assets. In 2023, the Company’s amortisation by service period was
included in the administrative expense of RMB7,145,058.80.
XVI Commitments and Contingencies
1. Significant commitments
√Applicable□Not applicable
Significant ongoing commitments on the balance sheet date, as well as the nature and amounts involved:
As of 31 December 2023, the Company’s investment projects with funds raised through public
offering are as follows:
Raised funds Cumulatively used
investment amount of raised
Project
amount funds (RMB’0,000)
(RMB’0,000)
Construction project for a base with annual output of
180 million sets of LED lamps, and R&D centre and 115,203.61 86,185.73
headquarters
Channel end construction and brand promotion project 84,745.75 78,268.23
Base construction project for annual output of 410 75,452.86 50,972.50
million sets of wall switches and sockets
Construction project for automation upgrading of 58,883.63 47,836.88
annual output of 400 million sets of adaptors
Information technology promotion project 16,035.00 11,038.16
Total 350,320.85 274,301.50
2. Contingencies
(1) Significant ongoing contingencies on the balance sheet date
□Applicable √Not applicable
(2) The Company shall make it clear if it has no significant contingencies that are required to be
disclosed.
□Applicable √Not applicable
253 / 266
Annual Report 2023
(3) Other information
□Applicable √Not applicable
XVII Events after the Balance Sheet Date
1. Significant non-adjustment matters
□Applicable √Not applicable
2. Profit distribution
√Applicable□Not applicable
Unit: RMB
Profit or dividends to be distributed 2,763,776,569.90
Approved and declared profit or
dividends to be distributed
3. Return of sales
□Applicable √Not applicable
4. Other events after the balance sheet date
√Applicable□Not applicable
(1) The 2024 Restricted Share Incentive Plan
According to the 2024 Restricted Share Incentive Plan approved at the Second Meeting of the Third
Board of Directors on 25 April 2024, the Company intends to grant a total of 2,430,000 restricted shares
to 888 awardees at a certain price. The plan is subject to final approval by a general meeting of
shareholders.
The restricted shares granted under the incentive plan will be subject to performance appraisal in
three unlocking years/periods, with the achievement of the performance requirements as the condition for
the unlocking of the restricted shares for the awardees. For the first unlocking period, the operating revenue
or net profit in 2024 shall be no less than the average of the previous three fiscal years (i.e. 2021-2023)
and no less than 110% of the average of the previous two fiscal years (i.e. 2022-2023); for the second
unlocking period, the operating revenue or net profit in 2025 shall be no less than the average of the
previous three fiscal years (i.e. 2022-2024) and no less than 110% of the average of the previous two fiscal
years (i.e. 2023-2024); and for the third unlocking period, the operating revenue or net profit in 2026 shall
be no less than the average of the previous three fiscal years (i.e. 2023-2025) and no less than 110% of the
average of the previous two fiscal years (i.e. 2024-2025).
(2) 2024 Special Talent Shareholding Plan
According to the 2024 Special Talent Shareholding Plan passed at the 2nd Meeting of the 3rd Board
of Directors held by the Company on 25 April 2024, the Company plans to offer equity incentives to the
talent playing a crucial role in the Company's overall operating performance and its medium- and long-
term development, including directors (independent directors are not eligible unless otherwise specified),
supervisors, senior management, and core talent. The source of relevant funds is the Company's employee
long-term incentive rewards.
The underlying shares obtained in each batch of this shareholding plan (including first granting and
reserved granting) are granted in four phases. The proportion of underlying shares granted in each phase
254 / 266
Annual Report 2023
is 25%, 25%, 25%, and 25%, respectively. The underlying shares of a first granting shall be granted
respectively after 12 months, 24 months, 36 months, or 48 months from the date when the Company
releases them to this shareholding plan for the first time. The underlying shares of a reserved granting
shall be granted respectively after 12 months, 24 months, 36 months, or 48 months from the releasing date
according to the reserved granting agreement. The actual releasing proportion and number of the
underlying shares in each year shall be determined based on the Company's operating performance and
relevant individual performance assessment.
If the Company's operating performance targets concerning this shareholding plan are achieved, the
management committee will sell the batch of corresponding underlying shares according to market
conditions and the proceeds will be distributed to holders based on their holding proportions after
deducting relevant taxes (including personal income tax) in accordance with the law, or transfer the
corresponding underlying shares to a holder's personal securities account in a non-trading manner.
Unallocated underlying shares and relevant dividends belong to the Company.
To meet the performance assessment target for releasing each batch of underlying shares concerning
the shareholding plan, the operating revenue or net profit in the current year shall not be lower than the
average of the previous three fiscal years and also not be less than 110% of the average of the previous
two fiscal years.
(3) The Company's share repurchase plan
The Company held the Second Meeting of the Third Board of Directors on 25 April 2024, where it
intended to repurchase its shares through a call auction transaction with its own funds, and the repurchase
price shall not exceed RMB156 per share (inclusive); the total amount of repurchase shall not be less than
RMB250,000,000 (inclusive) and shall not exceed RMB350,000,000 (inclusive), and the repurchase
period shall be within 12 months from the date when the Company's Board of Directors deliberates and
adopts the repurchase scheme.
The shares repurchased by the Company will be used for equity incentives at an appropriate time in
the future, and will be granted within three years after the date of the announcement of the implementation
of the share repurchase and the announcement of the change of shares. If it is not granted, the Company
will perform the procedures for deducting the registered capital in accordance with the law, and the shares
not transferred will be retired.
XVIII Other Significant Events
1. Correction of prior accounting errors
(1) Retrospective restatement method
□Applicable √Not applicable
(2) Prospective application method
□Applicable √Not applicable
2. Significant debt restructuring
□Applicable √Not applicable
255 / 266
Annual Report 2023
3. Swap of assets
(1) Swap of non-monetary assets
□Applicable √Not applicable
(2) Swap of other assets
□Applicable √Not applicable
4. Annuity plans
□Applicable √Not applicable
5. Discontinued operations
□Applicable √Not applicable
6. Segment information
(1) Basis for the determination of the reporting segment and accounting policies
√Applicable□Not applicable
The Company determines the reporting segments on the basis of the regional divisions, the revenue
from principal operations and the cost of principal operations are divided based on the final sales places,
and the assets and liabilities are divided based on the locations of the operating entities.
(2) Financial information of reporting segments
√Applicable □Not applicable
Unit: RMB
Overseas Overseas
Offset
operations of operations of
Item Domestic among Total
domestic overseas
segments
companies companies
Revenue from
principal 15,494,120,354.44 175,092,663.92 18,294.96 15,669,231,313.32
operations
Cost of
principal 8,772,144,247.50 127,323,040.66 8,899,467,288.16
operations
Offset among
Item Domestic Overseas Total
segments
Total assets 19,739,114,169.42 23,091,555.51 19,761,948,042.96
Total liabilities 5,301,788,871.97 5,307.23 5,301,483,026.64
(3) Reasons shall be given if the Company has no reporting segments or is unable to disclose the
total assets and liabilities of the reporting segments.
□Applicable √Not applicable
(4) Other information
□Applicable √Not applicable
7. Other significant transactions and matters that may affect decision-making of investors
□Applicable √Not applicable
8. Other information
□Applicable √Not applicable
256 / 266
Annual Report 2023
XIX Notes to Key Items of the Financial Statements of the Company as the Parent
1. Accounts receivable
(1) Breakdown by aging
√Applicable □Not applicable
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year
Of which: Sub-items within 1 year
Within 1 year 294,467,965.34 359,382,480.21
Subtotal within 1 year 294,467,965.34 359,382,480.21
1 to 2 years
2 to 3 years
Over 3 years
3 to 4 years
4 to 5 years
Over 5 years
Total 294,467,965.34 359,382,480.21
(2) Breakdown by method of establishing bad debt provisions
√Applicable□Not applicable
Unit: RMB
Closing balance Opening balance
Bad debt Bad debt
Gross amount Gross amount
provision provision
Type Provis Provis
Carrying Carrying
Perce ion Perce ion
amount amount
Amount ntage Amount perce Amount ntage Amount perce
(%) ntage (%) ntage
(%) (%)
Bad
debt
provis
ion
establi
shed
on an
indivi
dual
basis
Bad
debt
provis
ion
establi 294,467, 100.0 14,723,3 279,744, 359,382, 100.0 17,969,1 341,413,
5.00 5.00
shed 965.34 0 98.27 567.07 480.21 0 24.01 356.20
on a
groupi
ng
basis
294,467, 14,723,3 279,744, 359,382, 17,969,1 341,413,
Total / / / /
965.34 98.27 567.07 480.21 24.01 356.20
(3) Bad debt provision
√Applicable□Not applicable
Unit: RMB
Changes for the current period
Opening Transferred Closing
Type Recovered Other
balance Established or written- balance
or reversed changes
off
257 / 266
Annual Report 2023
Bad debt
provision
established -
17,969,124.01 14,723,398.27
on a 3,245,725.74
grouping
basis
Total -
17,969,124.01 14,723,398.27
3,245,725.74
(4) Accounts receivable written off in the current period
□Applicable√Not applicable
Significant accounts receivable written off:
□Applicable√Not applicable
Notes to the accounts receivable written off:
□Applicable√Not applicable
(5) Top five entities with respect to accounts receivable and contract assets
√Applicable □Not applicable
Unit: RMB
As % of the
closing balance
Closing balance of
Closing of total Closing
Closing balance of accounts receivable
Entity balance of accounts balance of bad
accounts receivable and contract assts
contract assets receivable and debt provision
combined
contract assts
combined
Information
176,686,946.05 176,686,946.05 60.00 8,834,347.30
Technology
Electric Sales 113,146,238.40 113,146,238.40 38.42 5,657,311.92
China
Railway
Construction 992,800.00 992,800.00 0.34 49,640.00
Group Co.,
Ltd.
Intelligent
747,334.44 747,334.44 0.25 37,366.72
Technology
Chongqing
Seres New
Electric 490,495.95 490,495.95 0.17 24,524.80
Vehicle Sales
Co., Ltd.
Total 292,063,814.84 292,063,814.84 99.18 14,603,190.74
2. Other receivables
Breakdown
√Applicable□Not applicable
Unit: RMB
Item Closing balance Opening balance
Interests receivable
Dividends receivable 1,100,000,000.00 1,700,000,000.00
Other receivables 833,070,108.44 1,056,026,303.85
Total 1,933,070,108.44 2,756,026,303.85
Interest receivable
(1) Classification of interest receivable
□Applicable√Not applicable
258 / 266
Annual Report 2023
(2) Significant overdue interest
□Applicable√Not applicable
(3) Breakdown by method of bad debt provision establishment
□Applicable√Not applicable
(4) Bad debt provision established using the general model of expected credit loss
□Applicable√Not applicable
Significant change in the gross amount of interest receivable with change in loss provision in the period:
□Applicable√Not applicable
(5) Bad debt provision
□Applicable√Not applicable
(6) Interest receivable written off in the current period
□Applicable√Not applicable
Dividends receivable
(7) Dividends receivable
√Applicable□Not applicable
Unit: RMB
Item (or investee) Closing balance Opening balance
Ningbo Goneo 1,100,000,000.00 1,200,000,000.00
Electric Sales 500,000,000.00
Total 1,100,000,000.00 1,700,000,000.00
(8) Significant dividends receivable that are over one year
□Applicable√Not applicable
(9) Breakdown by method of bad debt provision establishment
□Applicable√Not applicable
(10) Bad debt provision established using the general model of expected credit loss
□Applicable√Not applicable
Significant change in the gross amount of dividends receivable with change in loss provision in the period:
□Applicable√Not applicable
(11) Bad debt provision
□Applicable√Not applicable
(12) Dividends receivable written off in the current period
□Applicable√Not applicable
Other receivables
(13) Breakdown by aging
√Applicable□Not applicable
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year
Of which: Sub-items within 1 year
Within 1 year 731,770,734.60 437,048,066.18
Subtotal within 1 year 731,770,734.60 437,048,066.18
1 to 2 years 152,898,549.49 711,594,599.88
2 to 3 years 558,432.05 791,002.18
Over 3 years 729,436.58 1,570,245.20
259 / 266
Annual Report 2023
3 to 4 years
4 to 5 years
Over 5 years
Total 885,957,152.72 1,151,003,913.44
(14) Breakdown by nature
√Applicable□Not applicable
Unit: RMB
Nature Closing gross amount Opening gross amount
Intercourse funds 881,424,411.48 1,143,058,695.61
Guaranteed deposit 1,694,367.06 1,858,945.12
Housing loan for employees 2,053,072.80 4,768,468.33
Others 785,301.38 1,317,804.38
Total 885,957,152.72 1,151,003,913.44
(15) Bad debt provision
√Applicable□Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debt 12-month Lifetime expected Lifetime expected Total
provision expected credit credit loss (without credit loss (with
loss credit impairment) credit impairment)
Balance of 1
21,852,403.31 71,159,459.99 1,965,746.29 94,977,609.59
January 2023
Balance of 1
January 2023 in
the Current
Period
- Transferred to
-7,644,927.47 7,644,927.47
Stage 2
- Transferred to
-55,843.21 55,843.21
Stage 3
- Transferred
back to Stage 2
- Transferred
back to Stage 1
Amount accrued
for the current 22,381,060.88 -63,458,689.30 -1,012,936.89 -42,090,565.31
period
Amount
transferred-back
for the current
period
Amount
charged-off for
the current
period
Amount written-
off for the
current period
Other changes
Balance as at 31
36,588,536.72 15,289,854.95 1,008,652.61 52,887,044.28
December 2023
260 / 266
Annual Report 2023
Significant change in the gross amount of an other receivable with change in loss provision in the period:
□Applicable√Not applicable
(16) Bad debt provision
√Applicable□Not applicable
Unit: RMB
Changes for the current period
Opening Reversed or Closing
Type Charged-off/Written- Other
balance Established transferred- balance
off changes
back
Bad debt
provision
established -
94,977,609.59 52,887,044.28
on a 42,090,565.31
grouping
basis
-
Total 94,977,609.59 52,887,044.28
42,090,565.31
Of which the bad debt provision recovered or transferred-back with significant amount during the
current period:
□Applicable√Not applicable
(17) Other receivables written off in the current period
□Applicable√Not applicable
Significant other receivables written off:
□Applicable√Not applicable
Notes to the other receivables written off:
□Applicable√Not applicable
(18) Top five entities with respect to other receivables
√Applicable□Not applicable
Unit: RMB
As % of the
Nature of Closing balance
closing balance of
Entity Closing balance other Aging of bad debt
total other
receivable provision
receivables
Transaction Within 1
307,049,080.03 34.66 15,352,454.00
amount year
Ningbo Goneo
Transaction
38,494,341.56 4.34 1-2 years 3,849,434.16
amount
Transaction Within 1
Electric Sales 255,432,408.44 28.83 12,771,620.42
amount year
Transaction Within 1
64,000,000.00 7.22 3,200,000.00
amount year
Cixi Goneo
Transaction
112,700,000.00 12.72 1-2 years 11,270,000.00
amount
Goneo Transaction Within 1
70,568,493.67 7.97 3,528,424.68
Photoelectricity amount year
Information Transaction Within 1
30,848,038.18 3.48 1,542,401.91
Technology amount year
Total 879,092,361.88 99.22 / / 51,514,335.17
(19) Centrally managed funds presented in other receivables
□Applicable√Not applicable
3. Long-term equity investments
√Applicable□Not applicable
261 / 266
Annual Report 2023
Unit: RMB
Closing balance Opening balance
Impairme
Item Gross Impairment Carrying Gross Carrying
nt
amount provision amount amount amount
provision
Investmen
ts in 805,126,253. 62,736,731. 742,389,522. 688,178,210. 688,178,210.
subsidiari 60 14 46 52 52
es
Investmen
ts in joint
ventures
and
associates
805,126,253. 62,736,731. 742,389,522. 688,178,210. 688,178,210.
Total
60 14 46 52 52
(1) Investments in subsidiaries
√Applicable□Not applicable
Unit: RMB
Impairment
Decrease Closing
provision
Opening Increase in the in the Closing balance of
Investee established in
balance current period current balance impairment
the current
period provision
period
Ningbo Goneo 156,847,510.96 15,247,961.84 172,095,472.80
Goneo
22,266,150.16 6,435,640.46 28,701,790.62
Photoelectricity
Goneo Digital 21,036,126.97 6,690,670.01 27,726,796.98
Banmen
Electrical 11,834,384.06 289,762.45 12,124,146.51
Appliances
Goneo
Precision 104,730,804.30 2,930,339.07 107,661,143.37
Manufacturing
Cixi Goneo 43,569,472.13 7,932.84 43,577,404.97
Shanghai
42,319,121.07 402,841.31 42,721,962.38
Goneo
Goneo
30,127,384.46 96,591.41 30,223,975.87
Management
Goneo
International 3,331,613.44 46,270.94 3,285,342.50
Trade
Electric Sales 21,810,748.47 6,918,407.74 28,729,156.21
Xingluo
9,910,274.20 9,910,274.20
Trading
Goneo Low
2,937,223.01 1,058,722.33 3,995,945.34
Voltage
Household
Electrical 5,463,647.05 4,493,459.14 9,957,106.19
Appliances
Hainan
10,000,000.00 10,000,000.00
Dacheng
Intelligent
2,929,997.01 1,655,655.00 4,585,652.01
Technology
Dalitek 91,000,000.00 91,000,000.00 62,736,731.14 62,736,731.14
Information
104,999,859.03 9,612,836.02 114,612,695.05
technology
Goneo New
600,000.00 9,926,482.71 10,526,482.71
Energy
262 / 266
Annual Report 2023
Shenzhen
1,271,829.22 3,227,461.01 4,499,290.23
Intelligent
Murora
1,192,064.98 15,252,892.66 16,444,957.64
Intelligent
Goneo HK 23,749,318.78 23,749,318.78
Goneo Tools 6,200,000.00 6,200,000.00
Goneo
2,797,339.24 2,797,339.24
Marketing
Total 688,178,210.52 116,994,314.02 46,270.94 805,126,253.60 62,736,731.14 62,736,731.14
[Note] The investment in Goneo International Trade was reduced by RMB46,270.94 in the current period
due to the reversal of previously recognized equity incentive expense as a result of the resignation of equity
incentive employee before the unlocking in the current period.
(2) Investments in joint ventures and associates
□Applicable√Not applicable
(3) Impairment tests of long-term equity investments
4. Operating revenue and cost of sales
(1) Details of operating revenue and cost of sales
√Applicable□Not applicable
Unit: RMB
2023 2022
Item
Revenue Costs Revenue Costs
Principal
6,013,474,226.02 4,189,846,946.77 5,488,247,628.07 4,258,503,387.22
operations
Other
32,739,253.21 17,370,305.83 39,346,073.23 21,125,679.79
operations
Total 6,046,213,479.23 4,207,217,252.60 5,527,593,701.30 4,279,629,067.01
Of which:
Revenue
generated
6,024,523,530.53 4,195,601,773.35 5,503,428,124.33 4,271,075,267.90
by contracts
with
customers
(2) Breakdown of operating revenue and cost of sales
□Applicable√Not applicable
Other notes:
□Applicable√Not applicable
(3) Notes to contract performance obligations
□Applicable√Not applicable
(4) Notes to allocation to residual contract performance obligations
□Applicable√Not applicable
(5) Significant contract change or significant adjustment to the transaction price
□Applicable√Not applicable
5. Return on investment
√Applicable□Not applicable
Unit: RMB
Item 2023 2022
263 / 266
Annual Report 2023
Return on long-term equity
investments measured using the cost 1,500,000,000.00 1,700,000,000.00
method
Return on long-term equity
investments measured using the equity
method
Income from the disposal of long-term
equity investments
Income derived during the period of
holding held-for-trading financial
assets
Dividend income derived during the
period of holding other equity
investments
Interest income derived during the
period of holding debt investments
Interest income derived during the
period of holding other debt
investments
Income from the disposal of held-for-
trading financial assets
Income from the disposal of other
equity investments
Income from the disposal of debt
investments
Income from the disposal of other debt
investments
Income from debt restructuring
Return on investments in bank’s wealth
57,162,295.01 111,912,481.21
management products, etc.
Total 1,557,162,295.01 1,811,912,481.21
6. Other information
□Applicable√Not applicable
XX Supplementary Information
1. Schedule of exceptional gains and losses in the current period
√Applicable□Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets
-5,614,733.30
(inclusive of impairment allowance write-offs)
Government grants recognised in profit or loss
(exclusive of those that are closely related to the
Company's normal business operations and given
in accordance with defined criteria and in 191,833,723.62
compliance with government policies, and have
a continuing impact on the Company's profit or
loss)
Gain or loss on fair-value changes in financial
assets and liabilities held by a non-financial
enterprise, as well as on disposal of financial
7,786,015.00
assets and liabilities (exclusive of the effective
portion of hedges that is related to the
Company's normal business operations)
264 / 266
Annual Report 2023
Capital occupation charges on a non-financial
331,702.44
enterprise that are recognised in profit or loss
Gain or loss on assets entrusted to other entities
190,904,769.99
for investment or management
Gain or loss on loan entrustments
Asset losses due to acts of God such as natural
disasters
Reversed portions of impairment allowances for
receivables which are tested individually for
impairment
Gain equal to the amount by which investment
costs for the Company to obtain subsidiaries,
associates and joint ventures are lower than the
Company’s enjoyable fair value of identifiable
net assets of investees when making investments
Current profit or loss on subsidiaries obtained in
business combinations involving entities under
common control from the period-begin to
combination dates, net
Gain or loss on non-monetary asset swaps
Gain or loss on debt restructuring
One-off costs incurred by the Company as a
result of discontinued operations, such as
expenses for employee arrangements
One-time effect on profit or loss due to
adjustments in tax, accounting and other laws
and regulations
One-time share-based payments recognized due
to cancellation and modification of equity
incentive plans
Gain or loss on changes in the fair value of
employee benefits payable after the vesting date
for cash-settled share-based payments
Gain or loss on fair-value changes in investment
property of which subsequent measurement is
carried out using the fair value method
Income from transactions with distinctly unfair
prices
Gain or loss on contingencies that are unrelated
to the Company's normal business operations
Income from charges on entrusted management
Non-operating income and expense other than
-172,631,226.63
the above
Other gains and losses that meet the definition of
exceptional gain/loss
Less: Income tax effects 45,407,663.66
Non-controlling interests effects (net of tax) 255,755.27
Total 166,946,832.19
Items unlisted in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Exceptional Gain/Loss Items are identified as exceptional and the items
are of a significant amount, and exceptional gain/loss items listed in the Explanatory Announcement No.
1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional
Gain/Loss Items are identified as recurrent.
□ Applicable √ Not applicable
Other notes:
265 / 266
Annual Report 2023
□ Applicable √ Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
√Applicable□Not applicable
EPS
Weighted average
Profit in the Reporting Period Basic earnings per Diluted earnings per
ROE (%)
share share
Net profit attributable to
ordinary shareholders of the 29.20 4.36 4.36
Company
Net profit attributable to
ordinary shareholders of the
27.94 4.18 4.17
Company before exceptional
gains and losses
3. Accounting data differences under domestic and overseas accounting standards
□ Applicable √ Not applicable
4. Other information
□ Applicable √ Not applicable
Chairman of the Board: Ruan Liping
Date when this Report was authorized for issue: 25 April 2024
Revised information:
□Applicable √Not applicable
266 / 266
