2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Infore Environment Technology Group
Co., Ltd.
2021 Annual Report
Cleaner World, Better Future
April 2022
1
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part I Important Notice, Table of Contents and Definitions
The Board of Directors, the Supervisory Committee as well as the directors,
supervisors and senior management of Infore Environment Technology Group
Co., Ltd. (hereinafter referred to as "the Company") hereby guarantee that the
information presented in this report is free of any misrepresentations,
misleading statements or materia l omissions, and shall be jointly and severally
liable for the truthfulness, accuracy and completeness of its contents.
Ma Gang, the Company's legal Representative, Lu Anfeng, the Company's
Chief Financial Officer, and Wu Shanshan, the Head of the Company's
Accounting Department (equivalent to Financial Manager) hereby guarantee
that the financial statements carried in this report are truthful, accurate and
complete.
All directors of the Company attended the Board meeting to review this
report.
Any forward-looking statements such as future plans mentioned in this
report shall not be considered as promises to investors. Investors are advised to
pay attention to possible investment risks.
The Board has approved a final dividend plan as follows: based on the to tal
share capital (minus shares in the Company's repurchase account) on the date of
record for the 2021 final dividend plan, a cash dividend of RMB 1.00 (tax
inclusive) per 10 shares will be distributed to the shareholders, with no bonus
issue from either profit or capital reserves.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Table of Contents
Part I Important Notice, Table of Contents and Definitions .......................................................... 2
Part II Company Profile and Principal Financial Indicators ........................................................ 6
Part III Manage ment Discussion and Analysis ............................................................................. 12
Part IV Corporate Governance ...................................................................................................... 49
Part V Environme ntal and Social Responsibility .......................................................................... 72
Part VI Significant Events ............................................................................................................... 80
Part VII Share Changes and Shareholder Information ............................................................... 96
Part VIII Information on Preference Shares ............................................................................... 106
Part IX Information on Bonds ...................................................................................................... 107
Part X Financial Report ................................................................................................................ 110
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Documents for Reference
(I) Financial statements with signatures and seals of the legal representative
of the company, principal officer in charge of accounting and principal officer of
the accounting division.
(II) Original audit report with seal of the accounting firm and signature(s)
and seal(s) of CPA(s).
(III) Originals of all company documents and announceme nts publicly
disclosed on the website appointed by China Securities Regulatory Commission
(CSRC) within the reporting period.
The original and notarized photocopies of the abovementioned documents
are available at the company and the stock exchange for investors' reference.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Definitions
Term means Definition
Company, the Company, Infore Enviro means Infore Environment Technology Group Co., Ltd.
Zoomlion Environmental means Changsha Zoomlion Environmental Industry Co., Ltd.
Infore Technology means Guangdong Infore Technology Co., Ltd.
Greenlander Environmental means Shenzhen Greenlander Environmental Protection Co., Ltd.
CSRC means China Securities Regulatory Commission
SZSE means Shenzhen Stock Exchange
General Meetings means General Meetings of Infore Environment Technology Group Co., Ltd.
Board of Directors means Board of Directors of Infore Environment Technology Group Co., Ltd.
Board of Supervisors means Board of Supervisors of Infore Environment Technology Group Co., Ltd.
Company Law means Company Law of the People's Republic of China
Securities Law means Securities Law of the People's Republic of China
Articles of Association of Infore Environment Technology Group Co.,
Articles of Association means
Ltd.
Private-Public Partnership: an operational model of public infrastructural
PPP means
projects
Build-Operate-Transfer: a way in which private businesses participate in
BOT means the development of public infrastructure and provide public services to
the society
Engineering, procurement and construction: a form of contract for large-
scale and complex infrastructural projects in which the contractor
EPC means coordinates all engineering, procurement and construction works and
ensures that the entire project is completed and delivered for a guaranteed
price by a fixed date and to specified standards.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part II Company Profile and Principal Financial Indicators
I. Company Profile
Abbreviated stock name Infore Enviro Stock code 000967
Stocks listed on Shenzhen Stock Exchange
Chinese name 盈峰环境科技集团股份有限公司
Chinese abbreviated name 盈峰环境科技集团
Foreign name (if any) Infore Environment Technology Group Co., Ltd.
Legal Representative Ma Gang
No. 1818 Renmin Road West, Dongguan Street, Shangyu District, Shaoxing City, Zhejiang
Registered address
Province
Postal code 312300
Historical updates to
NA
registered address
23/F, Infore Center, No. 7-8 Yixing Road, Xincheng Area, Beijiao Town, Shunde District, Foshan
Office address
City, Guangdong Province
Postal code 528300
Company website www.inforeenviro.com
Email inforeenviro@infore.com
II. Contact Details
Board Secretary Securities Representative
Name Jin Taotao Wang Fei
23/F, Infore Center, No. 7-8 Yixing Road, 23/F, Infore Center, No. 7-8 Yixing Road,
Address Xincheng Area, Beijiao Town, Shunde Xincheng Area, Beijiao Town, Shunde
District, Foshan City, Guangdong Province District, Foshan City, Guangdong Province
Telephone 0757-26335291 0757-26335291
Fax 0757-26330783 0757-26330783
Email wangyf@infore.com wangyf@infore.com
III. Information Disclosure and Access
Stock exchange website on which the report is
Shenzhen Stock Exchange: http://www.szse.cn/
published online
Publications and websites on which the report is China Securities Journal, Shanghai Securities Journal, Securities Times,
published Securities Daily and Cninfo (http://www.cninfo.com.cn/)
Securities Department, 23/F, Infore Center, No. 7-8 Yixing Road, Xincheng
Place where the report is lodged
Area, Beijiao Town, Shunde District, Foshan City
IV. Changes to Registered Information
Organization code 913300006096799222
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Since its listing in 2000, the Company has changed the scope of its business five
times. Scope of business as of November 18, 1993: the research, development and
production of ventilators, air-cooling and water-cooling equipment, air conditioners,
refrigerators, quick-freezing equipment, molds and power generators. Export (refer to
the documents of approval from the Ministry of Foreign Trade and Economic
Cooperation for details): on July 2, 2002, the scope of business expanded to include
"metal and plastic-steel composite pipes and profiles". On November 14, 2003, the
scope of business expanded to include "environmental engineering". On February 29,
2016, a strategic transformation led to an expansion of the Company's scope of
business to: the R&D, maintenance and operation of environmental monitoring
instruments; the development of as well as and consultancy and other services for
environmental management technologies; the operation of environmental management
facilities; environmental engineering; environmental conservation engineering;
municipal engineering; the design and implementation of water conservancy and other
water-related projects; the development of and services for technologies for water
pollution control, water treatment and ecological restoration; the R&D, sales and
relevant technology consultation for communication products, network products,
mechatronic products, automation control products, buildings and smart community
products; and the design, development, investment, operation, management and
technical consultancy for the disposal and recycling of municipal and solid waste and
Changes to the Company's principal relevant supporting facilities; the sales of ventilators, air-cooling and water-cooling
activities since its listing (if any)
equipment as well as air conditioners; the operation of import and export businesses,
industrial investment, investment management, asset management and investment
consultation. On May 18, 2016, "investment, the operation of import and export
businesses, industrial investment, investment management and asset management"
were removed from the Company's scope of business. On June 28, 2019, the
Company's scope of business was updated to: the R&D, manufacturing, sales,
technology consultation, maintenance and operation of sanitation equipment,
specialized industrial robots, new energy vehicles, environmental monitoring
equipment, special equipment for environmental protection and automobile charging
equipment and parts; the leasing, design, operation, management, technological
development and services for the disposal and recycling of municipal and solid waste
and relevant supporting facilities; the design, construction, operation, management,
technological development and services for environmental engineering, municipal
engineering, landscape engineering, electrical engineering, water conservancy and
other water-related projects, water pollution control, air pollution control and soil
remediation; the commercial cleaning, collection, transportation and treatment (based
on license) of urban solid waste; the development, technological consultation and
services for environmental protection, IoT and Internet technologies; the R&D and
sales of software; the sales of ventilators, air-cooling and water-cooling equipment as
well as air conditioners; import and export businesses; and investment consultation.
1. In 2000, the Company went public. Its largest shareholder was Zhejiang Fan
and Air-cooling Equipment Co., Ltd.. 2. On February 23, 2006, the former controlling
shareholder of the Company, Zhejiang Shangfeng Industry Group Co., Ltd., and the
Company's shareholder, Media Group Co., Ltd., transferred their respective stocks of
9,575,027 shares and 24,897,984 shares to Guangdong Infore Group Co., Ltd.
Guangdong Infore Group Co., Ltd. became the Company's biggest shareholder. 3. On
August 5, 2008, the Company's controlling shareholder, Guangdong Infore Group Co.,
Changes to the Company's controlling Ltd. changed its name to "Guangdong Infore Holding Investment Group Co., Ltd." 4.
shareholders since its incorporation (if
On September 30, 2010, Guangdong Infore Holding Investment Group Co., Ltd.
any)
changed its name to "Infore Holding Investment Group Co., Ltd." The latter became
the Company's controlling shareholder. 5. On January 4, 2019, the private placement of
new shares for the purchase of new assets was made and the Company issued
1,017,997,382 shares to Ningbo Infore Asset Management Co., Ltd. to acquire its 51%
share of Zoomlion Environmental. Ningbo Infore Asset Management Co., Ltd. became
the Company's largest shareholder. As of the end of the reporting period, the
Company's controlling shareholder was Ningbo Infore Asset Management Co., Ltd.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
V. Other Relevant Information
The auditor engaged by the company
Auditor Pan-China Certified Public Accountants LLP (Special General Partnership)
28/F, Block B, China Resources Building, No. 1366 Qianjiang Road, Jianggan District,
Auditor's office address
Hangzhou City, Zhejiang Province
Authorized signatories Bian Shanshan, Pan Jianwu
The sponsor engaged by the company to exercise constant supervision over the company during the reporting period
√ Applicable □ Not Applicable
Sponsor Sponsor's office address Representative Supervisory period
Room 2501, No. 575 Wusong
China Renaissance Securities
Road, Hongkou District, Li Zeming, Zheng Zaoshun 2021
(China) Co., Ltd.
Shanghai City
The financial advisor engaged by the company to exercise constant supervision over the company during the reporting period
√ Applicable □ Not Applicable
Financial advisor's office
Financial advisor Representative Supervisory period
address
Room 2501, No. 575 Wusong
China Renaissance Securities
Road, Hongkou District, Li Zeming, Zheng Zaoshun 2021
(China) Co., Ltd.
Shanghai City
VI. Major Accounting Data and Financial Indicators
Indicate whether there is any retrospectively restated datum in the table below
□ Yes √ No
2021 2020 Boy change (%) 2019
Revenue (RMB) 11,813,537,444.48 14,332,025,075.40 -17.57% 12,695,858,666.40
Net profit attributable to the listed
728,467,910.42 1,386,476,099.73 -47.46% 1,361,453,754.17
company's shareholders (RMB)
Net profit attributable to the listed
company's shareholders after non- 532,726,168.36 1,432,219,046.72 -62.80% 1,252,134,237.70
recurring gains and losses (RMB)
Net cash flows from operating activities
809,218,720.13 1,688,714,091.75 -52.08% 1,484,750,054.02
(RMB)
Basic earnings per share (RMB/share) 0.23 0.44 -47.73% 0.43
Diluted earnings per share (RMB/share) 0.23 0.44 -47.73% 0.43
Weighted average return on equity (%) 4.33% 8.62% -4.29% 9.05%
December 31, 2021 December 31, 2020 Boy change (%) December 31, 2019
Total assets (RMB) 28,332,009,628.13 30,110,536,990.88 -5.91% 24,854,667,694.94
Net assets attributable to the listed
16,903,241,702.09 16,920,214,085.42 -0.10% 15,514,697,715.97
company's shareholders (RMB)
Indicate whether the lower of the net profit attributable to the listed company's shareholders before and after non-recurring gains and
losses was negative for the last three accounting years and that there was uncertainty about the Company's ability to continue as a
going concern in the latest independent auditor's report.
□ Yes √ No
Indicate whether the lower of the net profit attributable to the listed company's shareholders before and after non-recurring gains and
losses is negative.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
□ Yes √ No
VII. Accounting Data Differences Arising from Domestic/Overseas Accounting Standards
1. Net Profit and Net Assets Under China Accounting Standards (CAS) and International Financial
Reporting Standards (IFRS)
□ Applicable √ Not Applicable
No such differences for the reporting period.
2. Net Profit and Net Assets under CAS and Overseas Accounting Standards
□ Applicable √ Not Applicable
No such differences for the reporting period.
VIII. Quarterly Key Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Revenue 2,737,466,332.64 2,710,222,451.64 2,214,117,506.71 4,151,731,153.49
Net profit attributable to the listed
151,775,586.90 219,603,321.44 189,304,686.57 167,784,315.51
company’s shareholders
Net profit attributable to the listed
company’s shareholders after non- 218,315,226.13 217,122,682.26 166,728,253.71 -69,439,993.74
recurring gains and losses
Net cash flows from operating activities -887,704,591.04 -527,674,751.33 -189,394,992.84 2,413,993,055.34
Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what have been
disclosed in the Company's quarterly or interim reports
□ Yes √ No
IX. Non-recurring Gains and Losses Items and Amounts
√ Applicable □ Not Applicable
Unit: RMB
Item 2021 2020 2019 Note
Gain of RMB 8,040,787.90 for
the disposal of long-term equity
investments; loss of RMB
Gain or loss for the disposal of non- 2,254,626.67 for the disposal of
current assets (inclusive of provisions 6,337,251.97 -42,036,810.26 -60,892,199.11 fixed assets; gain of RMB
to write off impaired assets) 1,092,784.45 for the disposal of
construction in progress; loss of
RMB 541,693.71 for the
retirement of fixed assets
Tax rebates, reductions and
exemptions granted ultra vires or 3,768,945.18 621,422.30 -- --
without official documents of
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
approval
Government subsidies recognized as
gain or loss during the reporting
period (exclusive of government
subsidies given in the Company's 55,341,877.03 42,047,479.15 104,385,272.35 --
ordinary course of business at fixed
quotas or amounts as per the
government's policies or regulations)
Guangdong Liangke
Environmental Protection
Engineering Co., Ltd., RMB
1,211,591.98; Shantou Zhonglian
Ruikang Environmental Health
Service Co., Ltd., RMB
726,429.04; minority
shareholders of Shangfeng
Industrial Company, RMB
Capital collected from non-financial
645,168.12; Lianjiang
enterprises that was recognized as
3,173,551.55 22,117,071.89 19,799,364.06 Greenlander New Energy Co.,
gain or loss during the reporting
Ltd., RMB 474,994.40; Jilin
period
Xinyu Environmental
Technology Group Co., Ltd.,
RMB 92,260.00; Shantou
Zhonglian Ruikang
Environmental Health Service
Co., Ltd, RMB 19,599.99;
Suzhou Xingzhou Environmental
Water Treatment Technology
Co., Ltd., RMB 3,508.02
Gain or loss on assets entrusted to Investment income of RMB
other parties for investment or 29,170,261.66 23,771,715.03 4,556,023.27 29,170,261.66 on investments in
management wealth management products
Changes in fair value of financial
assets held for trading: RMB -
Gain or loss arising from changes in
73,146,774.32; gain/loss for
fair value of financial assets and
disposal of financial assets held
financial liabilities held for trading as
for trading: RMB -2,883,937.64;
well as the disposal of financial assets
gain/loss for ineffective hedges
and financial liabilities held for -79,222,823.84 -90,608,285.06 24,337,671.43
that have been closed: RMB -
trading and financial assets available
3,263,048.33; changes in fair
for sale (exclusive of effective hedges
value of ineffective hedges that
that arise in relation to the Company's
remain open: RMB 72,100.27;
ordinary course of business)
gain/loss arising from futures
transaction fees: RMB -1,163.82
Reversal of provisions for impaired
receivables which have been -- -- 140,000.00 --
individually tested for impairment
Other non-operating income and
2,598,028.75 -7,514,468.68 -467,259.49 --
expense
Gain/loss from the disposal of
Guangdong Liangke
Other gains and losses that fall into
Environmental Protection
the definition of non-recurrent gains 172,459,718.81 839,195.26 24,676,400.00
Engineering Co., Ltd.'s creditors'
and losses
rights: RMB 8,999,098.81;
original shareholders of
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Greenlander Environmental's
compensation for failing to meet
committed business
performance: RMB
163,460,620.00
Less: Income tax -8,007,245.43 -8,391,224.21 6,566,767.92 --
Impact from minority shareholders’
5,892,314.48 3,371,490.83 648,988.12 --
interests (after tax)
Total 195,741,742.06 -45,742,946.99 109,319,516.47 --
Details on other gains and losses that fall into the definition of non-recurring gain/loss:
√ Applicable □ Not Applicable
Gain/loss from the disposal of Guangdong Liangke Environmental Protection Engineering Co., Ltd.'s creditors' rights: RMB
8,999,098.81; original shareholders of Greenlander Environmental's compensation for failing to meet committed business
performance: RMB 163,460,620.00
The explanation for why the Company reclassified an item defined as an non-recurring gain/loss item in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gain/Loss
Items as a recurrent item
√ Applicable □ Not Applicable
Item Amount Involved (RMB) Reason
Regular government subsidies given in the Company's ordinary course
Value-added tax rebate 22,195,312.61 of business at fixed quotas or amounts as per the government's policies
or regulations
Regular government subsidies given in the Company's ordinary course
Subsidy for sludge disposal 3,056,730.58 of business at fixed quotas or amounts as per the government's policies
or regulations
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part III Management Discussion and Analysis
I. Industry Performance During Reporting Period
1. Overview
The sanitation industry in which the Company operates is classified as a public services industry. The sanitation industry is
typically divided into two parts: sanitation equipment and sanitation services.
The year 2021 is the inaugural year for the 14th Five-Year Plan. Municipal governments have been facilitating plans for
development over the next five years and intensively launching various policies. Some sanitation projects were rescheduled for
deferred implementation. The recurring pandemic and other factors such as rising costs of raw materials have resulted in rela tively
significant fluctuations in the overall sanitation industry in the short term.
However, as a provider of essential public services that are closely intertwined with the daily livelihood of the people, the
sanitation industry is resilient against the short-term macroeconomic fluctuations, which pose little impact to the long-term
development of the sanitation industry. The long-term development of the domestic economy, government policies, expectations of
standards of sanitation and the people's standard of living, on the other hand, will determine the growth of the industry. The intensive
demand and implementation of plans for sanitation by municipal governments in 2021 will pave the way for an early resurgence of
the sanitation industry. The overall industry is set for continual growth in the long run.
2. Development Trends
(1) As separation of government and enterprise accelerates, marketization is becoming the mainstream in the industry
The marketization of China's sanitation industry refers to municipal governments' gradual withdrawal from the actual
management and operation in the sanitation industry and a shift towards an operational model in which governments source serv ices
and allow service providers to openly bid for such sourcing of services. Under such model, municipal governments make use of the
competitive market, constant supervision and other means to effectively boost the operational efficiency and quality of sanitation
services provided. The government's continual investment and implementation of policies that promote urban environmental
development have maximized the domestic sanitation industry's potential for growth.
The marketization of our domestic sanitation industry will further expand the industry's room for growth in the future. Playe rs in
sanitation industry with competitive advantages such as an established working relationship with the government, capital,
management experience, strong brand and cost synergy are well positioned to seize the opportunities granted by the current phase of
marketization and enjoy the benefits of rapid growth. The domestic sanitation industry is set for growth in the future. Increasing
market concentration is also to be expected.
(2) Rapid development of IoT technologies and increased adoption of smart sanitation
Smart sanitation primarily relies on intelligent equipment and the Smart Sanitation Cloud P latform to achieve smart operation of
environmental sanitation, reduce reliance on human labor and material resources and boost operational efficiency. It continue s to be
the future trend of the sanitation industry.
Intelligent equipment: The increased adoption of 5G sanitation robots, autonomous sanitation vehicles, and small smart
sanitation robots continues to expand the frontiers of the sanitation equipment industr y and offer highly promising market prospects.
Thus, the future of urban/rural sanitation services is increasingly steered towards one that is smart, requires less or even no human
labor. Small intelligent equipment and autonomous vehicles will present the next breakthrough and revolutionize the industry.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Smart Sanitation Cloud P latform: a platform that relies on IoT and mobile Internet technologies and integrates data generated
from all aspects involving sanitation equipment and services, such as R&D, manufacturing, logistics, vehicle operation, project
management, after-sales services, etc., in order to achieve a 24/7, all-round integration of four key elements - humans, vehicles,
objects and events- within the operating environment alongside backend and frontend platforms, delivering a precise and highly
effective model of operation, maintenance and remote monitoring. Such platform will boost the overall standards of urban
management and governmental services in the city comprehensively, from management and governance, to provision of services and
operation.
(3) Growing investment in the sanitation industry and continual expansion of market size
As an important part of public services, the sanitation industry obtains its funds mainly from allocation of government financial
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
expenditure. The infrastructure investment in the sanitation industry typically has a longer payback period and requires a la rge scale
of resources and capital. Nevertheless, as a necessary public expenditure, the industry is assured with a guaranteed and relatively
stable source of funds. In general, there has been an increase in the funds invested in the domestic sanitation industry from 2016 to
2020. There has been a gradual increase in the number of sanitation facilities and equipment, the area of roads and streets being
cleaned as well as the volume of domestic waste being collected. These indicators point to the sustained expansion of our domestic
sanitation industry, a trend that is expected to persist in the future.
For a detailed analysis on the industry, please refer to Discussion and Analysis on the Future Development of the Company
II. Principal Business During the Reporting Period
1. Principal activities
Infore Enviro is a leading investor and operator in the environmental sanitation services industry. With "smart sanitation" at the
core of its business, the Company employs a flexible business model for investment and operation and integrates new energy
equipment, autonomous vehicles and other smart sanitation equipment with a smart platform that is empowered by IoT, big data and
advanced industry-specific technologies to improve segmented full cycle dynamic control. The Company provides customers with
integrated IoT applications and a smart platform for operations and services across the full life cycle in areas such as cleaning and
disinfection in urban and rural areas, domestic waste sorting, collection, transportation and disposal of solid waste, personnel
management, collection and transportation of food waste, supervision of dirt transportation, leachate treatment and smart city
development.
In 2021, the Company rose swiftly to become a strong competitor in the sanitation services industry, ranking second in terms of
annualized new contract value. In terms of sales of sanitation equipment, the Company was ranked No.1 for the 21st consecutive year.
2. Principal products
In terms of intelligent equipment, leveraging its leading position in sanitation equipment industry, strong R&D and
manufacturing capabilities and a well-established nation-wide sales network, the Company forged a comprehensive suite of
sanitation equipment of over 400 models, providing customers with a wide range of solutions including a variety of sanitation and
cleaning equipment, waste collection and transportation equipment, new energy and clean energy sanitation equipment. The
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Company's range of products spans from 5G sanitation robots, autonomous sanitation vehicles, small smart sanitation robots, new
energy sanitation equipment, waste collection and transportation equipment, separate stations to sanitation and cleaning equipment,
showcasing its leading R&D capabilities in intelligent equipment.
Smart Sanitation Cloud Platform is a big data smart cloud platform that the Company developed independently and a pioneering
platform in the domestic sanitation industry that encompasses the full industrial chain. The platform is worth of RMB 150 million
investment, supported by over 20 smart sanitation-related copyrighted software and patents and integrating 5G, AI, big data, cloud
computing, edge computing and other advanced technologies to form an immersive framework and develop core technologies such
as integrated IoT applications, data communication, video command and control, safe driving tests, IoT software and hardware
compatible technologies and big data applications. Through the platform, the Company can monitor all humans, vehicles, objects and
events related to the management of environmental sanitation on a real-time basis and design sanitation management models
accordingly, boosting operational quality, reducing operating costs and promoting effective management of environmental sanitation
with statistical data and assessment.
Currently, the platform has provided smart services to local customers for over 50,000 products. In the future, the Company will
continue to deploy digital technologies and innovate new intelligent equipment and smart services. By synergizing with broade r
development of smart city, it will continue to promote the intensive application of its smart cloud platform as well as steer and drive
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
the digital transformation of the environmental sanitation industry.
In terms of smart services, the Company's "Environmental Sanitation APP" supports remote monitoring, data collection and
procedural approval for its line-up of smart equipment and products during operations. Through visualized data and automatic
analysis, the Smart Sanitation Cloud P latform is able to facilitate the online digitalized management of equipment, sophisticated
management of processes and quantified management of materials and achieving the operationalization of "smart services". The
entire process is smart, informatized and integrated, and its management is digitalized.
3. Performance in Key Markets
(1) Ranked second for annualized new contract value of sanitation services in 2021
According to statistics from Environmental Compass, a total of 75 new contracts for sanitation services were signed during the
reporting period. The projects are located across 25 provinces with a total contract value of RMB 8.435 billion and an annualized
contract value of RMB 1.228 billion, placing the Company as the first runner up in the industry. The Company's operating reve nue
for sanitation services in 2021 was RMB 3.025 billion, a YoY increase of 53.66%. As of the end of the reporting period, Infore
Enviro is operating 179 sanitation services projects with an annualized contract value of RMB 4.068 billion and a cumulative
contract value of RMB 45.884 billion. The total value of the Company's executory contracts reached RMB 38.273 billion. The
Company ranks second place in the industry and has performed excellently in terms of the ability to continue as a going conce rn.
According to statistics from Environmental Compass, amidst the marketization of the domestic sanitation industry, the total
value of projects that were successfully bid for reached RMB 216.3 billion in 2021, with an annualized new contract value of RMB
71.6 billion.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(2) Ranked first in terms of sales of sanitation equipment in 2021
According to the China Banking and Insurance Regulatory Commission's statistics on mandatory traffic accident liability
insurance for motor vehicles, the Company was ranked first in terms of sales of sanitation equipment in 2021 for the 21st consecutive
year. In 2021, the Company recorded sales of 16,521 units of sanitation equipment for a total of RMB 6.212 billion. Among the
products sold, 744 units were electric-only vehicles, which accounted for 18.37% of the market share.
According to the abovementioned statistics from the China Banking and Insurance Regulatory Commission, as of December 31,
2021, a total of 104,601 sanitation vehicles were sold in China. Among these, 4,050 were electric -only vehicles, amounting to a
market penetration rate of 3.87%.
4. Technological accumulation and innovation
(1) Cumulative R&D capabilities
Infore Enviro's R&D team comprises of experts from national research institutes. The company has innovation written into its
DNA. The Company has applied for 123 patents, including 69 utility patents. As of the end of the reporting period, it obtained 1,051
independent patents, of which 555 were utility patents, 415 were utility models and 81 were design patents. The Company ranke d
first for the highest number of technical patents and utility patents in the industry, took the leading role in the establish ment of
multiple national, industrial as well as local standards and established provincial research centers. It was granted the honorary title of
"Top 10 Enterprises of Intellectual Property Rights in Hunan Province" and awarded the China Machinery Industry Science and
Technology Award, the Hunan Provincial Science and Technology Progress Award, and the China Award for Science and
Technology in Construction. The Company was the first company in the environmental sanitation industry to be granted a license for
autonomous driving road testing by the government. It was also included in the Ministry of Industry and Information Technology's
list of key enterprises for China's new-generation AI industrial innovation, marking the Company as one of China's top AI research
teams and the "national team" when it comes to innovation in the field of smart sanitation robots.
(2) Innovation of cloud platform
Smart Sanitation Cloud Platform is a big data smart cloud platform that was independently developed by the Company and
supported by 14 software copyrights. By integrating advanced underlying technologies such as big data, cloud computing, IoT,
mobile Internet and AI into the platform, the Company developed core technologies such as integrated IoT applications, data
communication, video command and control, safe driving tests, IoT software and hardware compatible technologies and big data
applications. The seamless integration of sanitation equipment and operations allows the platform to achieve real-time connectivity
between humans, vehicles, objects and events involved in the provision of environmental sanitation services as well as standa rdized,
digitalized and smart operation and management. In terms of smart governance, the Company established a digital operation and
management system for plants, stations and equipment on the cloud platform. Through smart and safe operation that requires le ss
labor and energy consumption, the Company strives to develop competitive advantages with smart governance.
The platform is supported by over 20 smart sanitation-related software copyrights and patents and has won accolades such as the
Ministry of Industry and Information Technology's 2019 P ilot Demonstration of the Integration of Key Industries and the Internet,
2021 Outstanding Cases of Mobile IoT, 2021 Excellent Industrial App of Hunan, 2022 Changsha's Key R&D Project Garbage
Classification Collection and Transportation System Based on Image Recognition and CNN Deep Learning Algorithm and 2022
Changsha, Hunan's Torch Plan for an Intelligent Vehicle Industry. Currently, the platform has provided smart services to loca l
customers for over 50,000 products.
(3) Leader in new energy
The Company was the first to pioneer the development of new energy in the industry and offers the most comprehensive
portfolio of new energy products in the industry. Infore Enviro started the research and development of new energy-powered
sanitation equipment in 2007 and successfully developed the first full-electric sweeper truck in China in July 2008. The Company
was tasked with the cleaning and sanitation of the streets during the 2008 Beijing Olympics. Three decades of sustained R &D in
sanitation vehicles and over a decade of hard work has led Infore Enviro into developing over 40 types of new energy vehicles for
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
cleaning, washing, waste collection and urban sanitation. Its nearly 200 vehicle models form the most comprehensive suite of new
energy-powered sanitation vehicles in China.
During the reporting period, Infore Enviro launched its fifth-generation of new energy sanitation vehicles. This new series is the
most comprehensive array of sanitation vehicles available in the industry. The fifth-generation products have three main features:
they are safer and more reliable; more efficient and environmentally friendly, and more intelligent and energy-saving. Safe and
reliable: whole-vehicle competitiveness is improved and meets the strictest regulations of European ECE R45-04; the braking
performance exceeds the industry standard by 20%, which leads the industry standard of alternative energy sanitation equipment; the
driving assistance system is launched to allow comprehensive monitor ing and ensure safety. Efficient environmental protection:
light-weighted environmental protection design and upgraded operation system result in over 10% increase of the operating effect;
the combination of active and passive noise reduction design successfully reduced vehicle noise by 5 decibels. Intelligent and energy-
saving: the design of module-free battery pack increases the energy density by over 10%; the energy exchange system enables smart
charging and discharging, which effectively improves the battery endurance of all products, and can even be used to charge the
emergency rescue equipment in emergency situations.
(4) Pioneer in smart sanitation robots
The Company has independently developed over 10 models of smart sanitation robots (both basic and 5G smart models are
available) and offers the most comprehensive suite of cutting-edge smart sanitation robots in the market. The entire series of products
are integrated with core technologies such as green new energy, 5G+AIOT cluster control, AI, machine vision, 360-degree image
recognition and are equipped with sensors such as laser radar, ultrasonic radar, high precision differential GPS, 360-degree cameras,
allowing for smart robotic operations and smart navigation as well as paving the way for a more diverse operational capacity in a
wide range of locations and scenarios. The Company's first "5G Cloud+Sanitation Robot" is a smart remote cluster model of
operation that redefines how sanitation is carried out. By raising the standards of digitalization and efficiency in the industry
drastically and reducing safety risks to sanitation personnel as well as labor costs, the new model of operation presents cle ar social
benefits for the community and economy.
The Company's 5G smart sanitation robot crew has been deployed in Shenzhen, Changsha and Suzhou. The crew has become a
new benchmark for smart urban sanitation and has been repeatedly recognized by government agencies and other associations as a
model for technological innovation that breathes new life into the traditional sanitation industry with AI. The 5G smart sanitation
robot crew digitalizes and informatizes urban sanitation, raises the capabilities for and standards of informatization in the sanitation
industry and improves the standards of sophisticated management of urban public services, creating a better living environment for
the people.
Other businesses of the Company primarily include environmental monitoring, solid waste treatment and the manufacturing of
ventilator equipment.
The Company's environmental monitoring business covers the monitoring of smoke, air quality, haze, water quality, water
conservation, soil and dust and the provision of an integrated one-stop service for environmental protection, water conservation,
water supply and smart cities. The sales of products form the main part of the business and is supplemented by the provision of
services for operation and maintenance.
The Company's solid waste disposal business primarily encompasses the incineration of domestic waste to gene rate energy, the
landfilling of domestic waste, the recycling of food waste and the utilization of solid waste in industrial parks. The incine ration of
domestic waste for the generation of energy and the utilization of solid waste in industrial parks form the core components of the
business. The industrial parks are equipped with treatment facilities for the disposal of domestic and hazardous waste, the treatment
of sludge, food waste, sewage, construction waste, leachate and fly ash and the ecological restoration of landfills. By applying an
integrated approach to these related services, the Company is able to provide a one-stop solution for the management of solid waste.
PPP forms the primary model of operation for this business.
The Company's manufacturing of ventilation equipment extends mainly to the production of ventilators, mufflers, dampers,
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
refrigerators, magnetic levitation fans, blowers and nuclear-grade dampers in the areas of nuclear power, subways, tunnels, rail
transportation, industrial and civil construction. Its fans are mainly sold via direct sales and retailers.
III. Analysis of Core Competitiveness
1. Industry-leader of sanitation equipment
As a domestic leader in environmental sanitation equipment, the Company has state-of-the-art core technologies and offers the
most comprehensive range of environmental sanitation equipment in the industry. In terms of R&D, the Company has successfully
mastered the technologies for new energy sanitation equipment, smart sanitation robots, a utonomous vehicles and other pioneering
technologies that embody the direction in which the industry is headed. It was the first company in the environmental sanitat ion
industry to be granted a license for autonomous driving road testing by the government. The Company developed the world’s first
smart sanitation robot crew and successfully deployed the crew in Orange Isle, a 5A level national scenic spot in Changsha City,
Hunan Province. The Company's 5G autonomous sanitation robot crew has also been deployed in the college town in Changsha. The
Company has developed a comprehensive suite of environmental sanitation equipment that spans over 400 models and allows the
Company to meet the diverse sanitation demands across the country. The Company has ranked first in terms of sales in the domestic
market for 21 consecutive years. As one of the pioneers in environmental sanitation equipment, the Company developed the firs t wet
and dry vacuum sweeper truck, the first fully hydraulic mini road sweeper, the first tunnel road washer, the first electric-only road
sweeper and the first natural gas-powered road washer in China. The Company has extensive and proven experience in the
environmental sanitation industry and became the most influential brand in the industry.
2. Fast growing sanitation business with standardized management
The Company established a new sanitation ecosystem with its operational model of "mechanized production+smart
operation+standardized service". With its new operational model, the Company aims for the centralized management of services and
planning, visual monitoring of the entire process of sanitation, swift response to emergencies and a closed-loop management. With
smart analysis performed on all data and improvements to management and controls that are based on evidence and rigorous science,
the Company strives to achieve "standardized service" and lead in the new era of smart sanitation.
From 2016 to 2020, the Company recorded total contract values of RMB 1.237 billion, RMB 5.561 billion, RMB 8.711 billion,
RMB 9.72 billion and RMB 12.574 billion respectively and annual service contract values of RMB 55 million, RMB 305 million,
RMB 429 million, RMB 855 million and RMB 1.248 billion respectively for environmental sanitation services, representing annual
growths by 454.54%, 40.66%, 99.3% and 45.96% respectively from 2017 to 2020. In 2021, the Company signed a total of 75
projects for sanitation services across 25 provinces, with an annual value and total value of RMB 1.228 billion and RMB 8.435
billion respectively. In 2021, The Company's operating revenue of sanitation services was RMB 3.025 billion, a YoY increase of
53.66%.
3. The best-in-class and most comprehensive after-sales service network
Leveraging its established sales network for sanitation equipment and rich industry experience, the Company built a nationwide
service network with 300 operational centers and nearly 1,000 environmental management and service projects in 31 provinces, cities
and autonomous regions. It has nearly 500 engineers who provide after-sales services and set off within 30 minutes from receiving a
request for troubleshooting. Regardless of the location in the country, all general issues can be resolved within 24 hours.
Environmental sanitation service projects are relatively localized and necessitate customization in order to meet regional needs.
As governments at all levels pay increasing attention to environmental sanitation, providers of sanitation services are required to
possess more experience in professional operations and provide long-term monitoring services in order to keep existing projects
running and continue to win new projects. A highly specialized after-sales network is needed in the industry to improve the quality of
services and delivery, seize commercial opportunities in each region and win new contracts.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
4. Excellent corporate culture
A company's corporate culture is the cornerstone of its creativity and unity as well as an important component in a company's
key competitiveness. The Company has a corporate vision of "Cleaner World, Better Future" and a corporate philosophy of providing
services that are "simple, professional and speedily executed". Its core values represent its beliefs: "Our clients are vital to us", "Our
employees are our business partners ", "Performance-oriented, we don't settle for mediocrity" and "We are built on technical
innovation". Facilitated by tech and talent enablements, our strategy places order growth at its core. The Company is committed to
becoming a respected and trusted leader that provides smart sanitation equipment and services with sanitation robotics at the core of
its business. Throughout the years, the Company's corporate culture and spirit are closely integrated with its business objec tives and
daily operations, guiding the Company’s various business segments and its subsidiaries to fully implement benchmarking operations,
continuously promote refined management and drive quality development of all businesses.
The Company is helmed by a pragmatic and competent management team. The Company's management team endorses the
corporate culture and shares the same management philosophy. Each member of the team complements the others' strengths and ha s
clearly defined responsibilities. As a whole, the team is united and possesses strong executive abilities. With abundant industry
experience and forward-looking vision, the team identifies industry trends with precision and speed and seizes market opportunities
promptly. For many years, the Company has promoted stock incentives and employee stock ownership as well as set up team
management frameworks for cornerstone partnerships, senior partnerships and general partnerships, gathering a group of passionate
trailblazers who share the Company's values, building a community for key employees in the Company and propelling the Company
towards stable, healthy and long-term growth.
IV. Analysis of Principal Business
1. Overview
The year 2021 is the inaugural year for the 14th Five-Year Plan. Municipal governments have been facilitating plans for
development over the next five years and intensively launching various policies. Some sanitation projects were rescheduled for
deferred implementation. The recurring pandemic and other factors such as rising costs of raw materials have re sulted in relatively
significant fluctuations in the overall sanitation industry in the short term. In the face of external challenges, the Compan y remained
steadfast to its key "5115" strategy by boosting its core workforce, investing more in technologica l innovation and R&D and steadily
cultivating internal strength. The Company also pushed for digital transformation and smart upgrades to improve operations. B y
expanding online coverage, driving standardization and informatization, the Company str ove to bring the standard of operational
management to the next level and provide a new momentum to push the Company into its next bound.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
In 2021, the Company recorded RMB 11,813,537,400 in operating revenue, RMB 728,467,900 in net profit attributable to the
listed company's shareholders and RMB 532,726,200 in net profit attributable to the listed company's shareholders after non-
recurring gains and losses, a YoY decrease of 17.57%, 47.46% and 62.80% respectively. As of the end of the reporting period, the
Company's total assets amounted to RMB 28,332,009,600 and the net assets attributable to the listed company's shareholders
amounted to RMB 16,903,241,700, a YoY decrease of 5.91% and 0.10% respectively. After the divestiture of its electromagnetic
wire business, the Company recorded RMB 11,264,667,000 in operating revenue, a YoY decrease of 4.46%.
The key operational milestones during the reporting period:
1. Rapid development of environmental sanitation services
The Company's operating revenue of sanitation services in 2021 was RMB 3.025 billion, a YoY increase of 53.66%. According
to statistics from Environmental Compass, a total of 75 new contracts for sanitation services were signed during the reportin g period.
These projects are located across 25 provinces with a total contract value of RMB 8.435 billion and an annual contract value of RMB
1.228 billion, placing the Company as the first runner-up in the industry. As of the end of the reporting period, Infore Enviro is
running 179 projects for sanitation services. These contracts amounted to an annual value of RMB 4.068 billion and a cumulative
value of RMB 45.884 billion. The total value of the Company's executory contracts reached RMB 38.273 billion. The Company
ranks second place in the industry and has performed excellently in terms of sustainable operation.
2. Improvement in quality and efficiency and a focus on "Smart Sanitation"
During the reporting period, the Company kept its focus on its key "5115" strategy and relied on its competitive strengths in
sanitation equipment to proactively drive the development of the smart sanitation business and consolidate its core businesses. Its
continued focus on the leading advantage in smart sanitation resulted in an increase of 78.19% in revenue generated from this main
business segment. The Company made gradual adjustments to its non-core businesses through restructuring, divestiture and spinoffs,
revitalizing existing resources and underperforming assets and improving asset management and operational quality to pave the way
for sustained and quality growth for the Company.
3. Sustained leadership in sanitation equipment
According to the China Banking and Insurance Regulatory Commission's statistics on mandatory traffic accident liability
insurance for motor vehicles, the Company recorded sales of 16,521 sanitation equipment in 2021. The Company ranked first in
terms of sales of sanitation equipment in 2021 for the 21st consecutive year. During the reporting period, the Company contin ued to
perfect and innovate its products, injecting RMB 290 million into R&D. The funds invested in the R&D of equipment took up 3.75%
of the revenue generated from smart equipment, and created cutting-edge outcomes leading the rest of the industry.
During the reporting period, the Company launched the first compression semi-trailer garbage truck and dual function deep road
cleaner in the domestic market, developed and launched a fuel cell-powered road washer, a solar panel washer, a waste liquid
spraying vehicle and high-altitude pruning vehicle, and launched the first 5G hydrogen-powered sanitation robot in the world.
4. Digital transformation and the setup of a highly efficient operating system
Over the years, the Company has remained committed to its digital transformation and in building a digital infrastructure for the
full value chain. The entire process of digital transformation has been transparent. As at 2021, Infore Enviro's digital transformation
has reached a certain phase and achieved results. In the digital factories, the manufacturing cycles for standard and non-standard
products are cut down by 22% and 28% respectively, the rate of timely deliveries by suppliers increased by 10% and blueprints
transfer efficiency increased by 90%. The Company can now deliver orders for standard products within seven days. In after-sales
service, the rate of timely responses rose to 92% and the rate of prompt delivery of components within 15 days rose to 93%. In sales,
the accuracy of delivery orders improved to 85%, the rate for manufactured products-to-warehouse improved to 95% and the
efficiency level of completing delivery orders was up by 30%. In R&D, the accuracy of cost estimation increased to 98% while the
use of common materials increased by 25%. In the wake of its digital transformation, the Company has integrated R&D, marketing,
planning, procurement, warehousing and manufacturing in an end-to-end process. With all decisions driven by data, the standard of
management is given a boost to the next level and new momentum provided to propel the Company into its next leap.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
5. Active and committed agent to corporate social responsibilities
In 2021, Infore Enviro continued to participate in charity and anti-pandemic activities in Shenzhen, Shijiazhuang, Xingtai,
Zhuhai, Fangchenggang and Nanjing, proactively battling the pandemic and fulfilling its corporate social responsibility through the
donation of cash and goods. As the prevention and control of the pandemic becomes a norm, the digitalized, mechanized and
sophisticated operation mode of Infore Enviro provided highly efficient aid to various regions in combatting the pandemic digitally,
it has received much attention from the community as well as repeated media coverage from Shenzhen City Channel, China Scienc e
and Technology Network, Shenzhen Special Zone Daily, Securities Daily and the like. During the pandemic, Infore Enviro increased
the frequency of its mechanical operations and carried out washing, sweeping, spraying, dust suppression and disinfection on a 24/7
basis. The Company capitalized on its small smart equipment and expanded the scope of its mechanical operations in CBDs, squares
and parks, back alleys and urban villages to curb cross-infections. It assumed the work of daily sanitation monitoring, disinfection
and waste collection in the community promptly and successfully built a "safety net" with no blind spots, no hidden hazards and
where all waste are cleared on the day. Infore Enviro also concurrently strived to heed the government's call and resume work and
production. The Company actively coordinated its resources and kickstarted production quickly, delivering a set of fog cannon,
cleaning and disinfection vehicle, road washer, garbage truck and other large sanitation equipment to various regions across the
country. As Infore Enviro endeavored to achieve success in its pandemic response as well as high quality growth, the Company
remained committed to working together with the community to overcome challenges.
2. Revenue and cost
(1) Breakdown of operating revenue
Unit: RMB
2021 2020
Percentage of Percentage of YoY change (%)
Amount Amount
operating revenue operating revenue
Total revenue 11,813,537,444.48 100% 14,332,025,075.40 100% -17.57%
Sector
Smart sanitation 9,237,262,348.48 78.19% 10,323,422,172.13 72.03% -10.52%
Others 2,576,275,096.00 21.81% 4,008,602,903.27 27.97% -35.73%
Product
Intelligent
6,211,980,162.80 52.58% 8,354,554,126.13 58.29% -25.65%
equipment
Smart service 3,025,282,185.68 25.61% 1,968,868,046.00 13.74% 53.66%
Others 2,576,275,096.00 21.81% 4,008,602,903.27 27.97% -35.73%
Region
Domestic 11,770,703,070.74 99.64% 14,276,021,772.44 99.61% -17.55%
Overseas 42,834,373.74 0.36% 56,003,302.96 0.39% -23.51%
Wholesale
Direct sales 10,431,862,062.40 88.30% 12,680,076,069.55 88.47% -17.73%
Retail 1,381,675,382.08 11.70% 1,651,949,005.85 11.53% -16.36%
(2) Sector, product, region or sales model contributing to over 10% of operating revenue/profit
√ Applicable □ Not Applicable
Unit: RMB
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
YoY change in
Gross profit YoY change in YoY change in
Revenue Operating cost gross profit
margin revenue cost
margin
Sector
Smart sanitation 9,237,262,348.48 7,253,801,852.83 21.47% -10.52% -3.22% -5.93%
Others 2,576,275,096.00 1,956,516,573.54 24.06% -35.73% -40.19% 5.67%
Product
Intelligent
6,211,980,162.80 4,737,242,308.93 23.74% -25.65% -20.73% -3.49%
equipment
Smart service 3,025,282,185.68 2,516,559,543.90 16.82% 53.66% 65.70% -6.04%
Others 2,576,275,096.00 1,956,516,573.54 24.06% -35.73% -40.19% 5.67%
Region
11,770,703,070.7
Domestic 9,174,926,853.06 22.05% -17.55% -14.37% -2.89%
4
Overseas 42,834,373.74 35,391,573.31 17.38% -23.51% -30.86% 8.78%
Wholesale
10,431,862,062.4
Direct sales 8,128,524,796.71 22.08% -17.73% -14.61% -2.84%
0
Retail 1,381,675,382.08 1,081,793,629.66 21.70% -16.36% -13.22% -2.84%
The Company's main business data for the year was adjusted to take into account revised statistical standards that were updated
during the reporting period
□ Applicable √ Not Applicable
(3) Whether revenue generated from physical sales higher than service revenue
√ Yes □ No
Sector Item Unit 2021 2020 YoY change (%)
Sales Unit 18,689 24,233 -22.88%
Smart sanitation Production Unit 19,654 24,515 -19.83%
Inventory Unit 3,087 2,122 45.48%
The explanation for data with YoY differences that exceed 30%
√ Applicable □ Not Applicable
The difference is primarily a result of an increased storage capacity for the inventory.
(4) Fulfillment of major sales/procurement contracts signed during the reporting period
□ Applicable √ Not Applicable
(5) Breakdown of operating cost
Sector
Unit: RMB
2021 2020
Sector Item Percentage of Percentage of YoY change (%)
Amount Amount
operating cost operating cost
Smart
Raw materials 4,554,862,117.93 62.79% 6,641,092,791.72 88.77% -31.41%
sanitation
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Smart
Labor expense 758,997,718.92 10.46% 343,174,808.02 4.59% 121.17%
sanitation
Smart
Depreciation 340,775,770.93 4.70% 104,388,340.95 1.40% 226.45%
sanitation
Smart
Utilities 412,552,873.06 5.69% 66,597,774.16 0.89% 519.47%
sanitation
Other
Smart
manufacturing 1,186,613,371.99 16.36% 325,178,262.77 4.35% 264.91%
sanitation
overhead
Others Raw materials 1,221,921,019.77 62.45% 2,870,104,855.95 88.56% -57.43%
Others Labor expense 94,761,477.14 4.84% 97,432,062.90 3.01% -2.74%
Others Depreciation 74,879,413.01 3.83% 127,190,822.18 3.93% -41.13%
Others Utilities 23,045,821.82 1.18% 47,866,336.76 1.48% -51.85%
Other
Others manufacturing 541,908,841.79 27.70% 97,771,335.08 3.02% 454.26%
overhead
Note
Labor costs, depreciation, utilities and other manufacturing overhead rose significantly on a YoY basis. This is primarily a result
of increased revenue from sanitation services in the current period, leading to a corresponding increase in costs for support ing
facilities, labor and outsourced labor, as well as cost of construction and services for PPP projects.
(6) Changes in the scope of consolidated financial statements for the reporting period
√ Yes □ No
1. Entities newly included in the consolidated financial statements
Company Mode of Ratio of capital
Date of acquisition Capital contribution
acquisition contribution (%)
Xiangtan Yinglian Environmental Industry Co.,
Incorporation Mar. 2021 24,508,110.00 66
Ltd.
Jinzhou Yinglian Urban Environmental Sanitation
Incorporation Mar. 2021 12,000,000.00 100
Management Co., Ltd.
Handan Yinglian Environmental Sanitation
Incorporation Apr. 2021 2,000,000.00 100
Management Co., Ltd.
Ordos Environmental Sanitation Management Co.,
Incorporation Jul. 2021 1,020,000.00 100
Ltd.
Luanzhou Yinglian Environmental Service Co.,
Incorporation Aug. 2021 2,000,000.00 100
Ltd.
Guangzhou Huadu Yinglian Environment Co.,
Incorporation Sept. 2021 100,000.00 100
Ltd.
Fenghuang Yinglian Environmental Service Co.,
Incorporation Sept. 2021 2,000,000.00 100
Ltd.
Xinning Yinglian Urban Environmental Service
Incorporation Sept. 2021 8,000,000.00 100
Co., Ltd.
Wanning Yinglian Environmental Industry Co.,
Incorporation Oct. 2021 1,000,000.00 100
Ltd.
Foshan Gaoming Yingde Smart City Management
Co., Ltd. Incorporation Oct. 2021 5,000,000.00 60
Huayuan Environmental Sanitation Management
Incorporation Nov. 2021 260,000.00 100
Co., Ltd.
Zhongwei Yinglian Urban Environmental Service
Incorporation Dec. 2021 1,000,000.00 70
Co., Ltd.
Guangzhou Yingsheng Environmental Sanitation Incorporation Jan. 2021 [Note] 100
24
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Service Co., Ltd.
Yiyang Yinglian Environmental Sanitation
Incorporation Jan. 2021 [Note] 100
Management Co., Ltd.
Shenzhen Infore Enviro Robot Co., Ltd. Incorporation Feb. 2021 [Note] 100
Sanya Yinghe Environmental Sanitation Service
Incorporation Feb. 2021 [Note] 100
Co., Ltd.
Wuhan Infore Zhonghui Environmental Protection
Incorporation Feb. 2021 [Note] 100
Technology Co., Ltd.
Chongyang Yinglian Environmental Protection
Incorporation Feb. 2021 [Note] 100
Co., Ltd.
Pu'an Yinghe Environmental Sanitation
Incorporation Mar. 2021 [Note] 100
Management Co., Ltd.
Guangzhou Yinglian Environmental Sanitation
Incorporation Mar. 2021 [Note] 100
Service Co., Ltd.
Wuhu Infore Zoomlion Environmental
Incorporation Mar. 2021 [Note] 100
Technology Co., Ltd.
Suzhou Xiangcheng Yinglian Environmental
Industry Co., Ltd. Incorporation Mar. 2021 [Note] 100
Susong Yinghe Environmental Sanitation
Incorporation Apr. 2021 [Note] 100
Management Co., Ltd.
Foshan Shunde Yingsheng Urban Environmental
Incorporation Apr. 2021 [Note] 100
Management Co., Ltd.
Taizhou Zhongying Urban Environmental Service
Incorporation May 2021 [Note] 100
Co., Ltd.
Liaocheng Yinghe Environmental Sanitation
Incorporation May 2021 [Note] 100
Service Co., Ltd.
Shenzhen Tongying Environmental Industry Co.,
Incorporation May 2021 [Note] 100
Ltd.
Shenzhen Zhongfu Environmental Technology
Co., Ltd. Incorporation Apr. 2021 [Note] 100
Wuhai Yinglian Environmental Engineering Co.,
Incorporation May 2021 [Note] 100
Ltd.
Jian' ou Yingsheng Environmental Sanitation
Incorporation Jun. 2021 [Note] 100
Management Co., Ltd.
Heping Liansheng Environmental Development
Incorporation Jun. 2021 [Note] 100
Co., Ltd.
Zhongshan Yinglian Environmental Sanitation
Incorporation Jun. 2021 [Note] 100
Management Co., Ltd.
Ruili Yinglian Environmental Industry Co., Ltd. Incorporation Jul. 2021 [Note] 100
Zongyang Tongying Environmental Sanitation
Incorporation Jul. 2021 [Note] 100
Management Co., Ltd.
Guangdong Infore Smart Technology Co., Ltd. Incorporation Jul. 2021 [Note] 100
Fengxian Zhongying Urban Environmental
Incorporation Jul. 2021 [Note] 100
Sanitation Management Co., Ltd.
Shanghai Yingwofeng Environment Technology
Incorporation Jul. 2021 [Note] 100
Development Co., Ltd.
Yichang Yinglian Urban Environmental Service
Incorporation Jul. 2021 [Note] 100
Co., Ltd.
Huai' an Yinghe Environment Technology Co.,
Incorporation Jul. 2021 [Note] 100
Ltd.
Zhangjiagang Zhongying Environmental
Incorporation Aug. 2021 [Note] 100
Development Co., Ltd.
Guangde Yinghe Environmental Sanitation
Incorporation Aug. 2021 [Note] 100
Development Co., Ltd.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Foshan Shunde Yinghong Smart Environmental
Incorporation Oct. 2021 [Note] 100
Sanitation Management Co., Ltd.
Zhongshan Yinglian Urban Environmental
Incorporation Oct. 2021 [Note] 100
Management Co., Ltd.
Taizhou Zhongying Environmental Management
Incorporation Oct. 2021 [Note] 100
Co., Ltd.
Weihui Yinglian Environmental Service Co., Ltd. Incorporation Oct. 2021 [Note] 100
Baisha Yinghe Environmental Sanitation Service
Incorporation Nov. 2021 [Note] 100
Co., Ltd.
Zhoushan Yinghe Environmental Sanitation
Incorporation Nov. 2021 [Note] 100
Service Co., Ltd.
Wuhan Tongying Environmental Sanitation
Incorporation Nov. 2021 [Note] 100
Management Co., Ltd.
Nanchang Yingsheng Environmental Protection
Incorporation Nov. 2021 [Note] 100
Service Co., Ltd.
Wuhu Yinghe Environmental Sanitation
Incorporation Nov. 2021 [Note] 100
Management Co., Ltd.
Huaibei Yinghe Urban Environmental Service
Incorporation Nov. 2021 [Note] 100
Co., Ltd.
Hanshou Jinglan Environmental Protection Co.,
Ltd. Incorporation Nov. 2021 [Note] 100
Chongqing Tongliang Fenglan Environmental
Incorporation Nov. 2021 [Note] 100
Protection Technology Co., Ltd.
Shenzhen Yingli Environmental Sanitation
Incorporation Dec. 2021 [Note] 100
Service Co., Ltd.
Guangrao Yinghe Urban Service Co., Ltd. Incorporation Dec. 2021 [Note] 100
Anning Tongying Environmental Sanitation
Incorporation Dec. 2021 [Note] 100
Service Co., Ltd.
Foshan Yinghe Investment Co., Ltd Incorporation Jun. 2021 [Note] 100
Guangdong Yinglian Urban Environmental
Incorporation Jun. 2021 [Note] 100
Management Co., Ltd.
2. Disposal of subsidiaries
Single disposal of investment in a subsidiary that results in loss of control.
Difference between the
consideration of disposal and
Consideration Proportion of Mode of the share of the subsidiary's
Name of Date of loss Basis determining date
of equity equity equity net assets corresponding to
subsidiary of control of loss of control
disposal disposal (%) disposal investment disposal in
consolidated financial
statement
Foshan
Yingtong
255,000,000.0 Substantive transfer of
Electrical 51.00 Sale Feb. 2021 2,356,921.46
0 control
Materials Co.,
Ltd.
Hunan
Ningxiang
Renhe Garbage Substantive transfer of
25,170,570.60
Comprehensive 92,500,000.00 100.00 Sale Nov. 2021 control
Treating Co.,
Ltd.
Guangdong
Substantive transfer of
Yingling Testing 1.00 51.00 Sale Aug. 2021 4,276,507.83
control
Technology Co.,
26
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Ltd.
(continued)
Proportion
Other comprehensive
of
Carrying Gain or loss Methodology and key income related to
remaining Fair value of
amounts of incurred from assumptions for equity investments of
equity remaining
Name of remaining remaining equity determining fair value subsidiary, amount of
interests equity interests
subsidiary equity interests interests re- of remaining equity transfer of changes in
on date of on date of loss
on date of loss measured according interest on date of loss other owners' equity
loss of of control
of control to fair value of control to gains and losses on
control
investment
(%)
Foshan 49.00 272,872,012.67 245,000,000.00 -27,872,012.67 Determined according --
Yingtong to equity value of the
Electrical portion disposed
Materials Co.,
Ltd.
Hunan -- -- -- -- -- --
Ningxiang
Renhe Garbage
Comprehensive
Treating Co.,
Ltd.
Guangdong 49.00 -4,108,800.68 -- 4,108,800.68 Determined according --
Yingling to equity value of the
Testing portion disposed
Technology Co.,
Ltd.
3. Entities excluded from the consolidation scope
Net profit from the
Date of equity Net assets on beginning of the
Company Mode of equity disposal
disposal disposal date period to the disposal
date
Liling Zhongfeng Environmental Industry
De-registration June 29, 2021 -- -983.54
Co., Ltd.
(7) Major changes in the business, products or services in the reporting period
□ Applicable √ Not Applicable
(8) Major customers and suppliers
Major customers of the Company
Total sales to top five customers (RMB) 931,507,483.46
Total sales to top five customers as percentage of total sales of the reporting period (%) 7.88%
Total sales to related parties among top five customers as percentage of total sales of the
0.00%
reporting period (%)
Top five customers
As percentage of the total sales
No. Customer Sales revenue (RMB)
revenue of the reporting period (%)
1 Customer A 431,275,241.23 3.65%
2 Customer B 135,070,606.80 1.14%
3 Customer C 131,464,510.32 1.11%
27
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
4 Customer D 130,540,081.73 1.11%
5 Customer E 103,157,043.38 0.87%
Total -- 931,507,483.46 7.88%
Other information about major customers
□ Applicable √ Not Applicable
Major suppliers of the Company
Total purchases from top five suppliers (RMB) 1,948,795,492.30
Total purchases from top five suppliers as percentage of total purchases of the reporting
31.15%
period (%)
Total purchases from related parties among top five suppliers as percentage of total
0.00%
purchases of the Reporting Period (%)
Top five suppliers
Purchase in the reporting period As percentage of the total purchases
No. Supplier
(RMB) (%)
1 Customer A 1,311,387,884.96 20.96%
2 Customer B 200,092,183.53 3.20%
3 Customer C 195,481,317.70 3.12%
4 Customer D 125,346,682.22 2.00%
5 Customer E 116,487,423.89 1.86%
Total -- 1,948,795,492.30 31.15%
Other information about major suppliers
□ Applicable √ Not Applicable
3. Expenses
Unit: RMB
2021 2020 YoY change (%) Reason for material change
Selling expenses 738,833,571.05 801,289,013.51 -7.79% --
Administrative expenses 585,353,407.57 536,466,686.12 9.11% --
Financial Expenses 58,604,804.53 66,121,331.59 -11.37% --
R&D expenses 262,619,127.29 254,677,332.19 3.12% --
4. R&D investments
√ Applicable □ Not Applicable
Name of major Expected impact on future
Objectives Progress Proposed goals
R&D projects development of the Company
To construct an Anodic
Stripping Voltammetry
Anodic Stripping technology CP, and to To manufacture a full-range It is conducive to the
Voltammetry Heavy manufacture Trace Amount Category I Heavy Metal Trace Company's continuous
Metal Detection Heavy Metal On-line R&D Amount Water Quality advancement towards high-
Water Quality On- Monitoring equipment, so as completed Monitoring products and reach tech innovative enterprises and
line Monitoring to build up a technology and a domestic leading level of breakthroughs in technical
Series products equipment reserve for the technology. difficulties.
water quality monitoring
project expansion during the
28
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
14th Five Year Plan.
Build an Ultra-Low
Concentration Water Sample
It is conducive to the
Testing Technology CP to To complete the R&D and
Company's continuous
On-line solve the problem of on-line launch of Groundwater
R&D advancement towards high-
groundwater quality monitoring of drinking water Ammonia-Nitrogen and Total
completed tech innovative enterprises and
monitoring series sources, groundwater, lakes, Phosphorus Water Quality
breakthroughs in technical
and reservoirs with good water Analyzer.
difficulties.
quality and very low pollutant
concentrations.
To complete the R&D and
It is conducive to the
To construct a full-range launch of Atmospheric Carbon
Company's continuous
On-line carbon carbon emission monitors and Emission CO2, CH4 Analyzer,
R&D advancement towards high-
emission system to empower carbon and Systematic, Pollution
completed tech innovative enterprises and
monitoring series neutrality and emission Source Carbon Emission
breakthroughs in technical
reduction. CO2、CO、CH4 Analyzer and
difficulties.
System.
Nuclear-grade
This helps to improve the key
double-layered To explore and expand the R&D To industrialize the result and
competitive advantages of the
stack-up axial flow segment completed generate market orders
company
Fan
Large-scale urban This helps to improve the key
To explore and expand the R&D in To industrialize the result and
transportation smart competitive advantages of the
segment progress generate market orders
purification system company
Purification fan This helps to improve the key
To explore and expand the R&D To industrialize the result and
dedicated for competitive advantages of the
segment completed generate market orders
pastoral purposes company
To develop garbage
transferring trucks used for the
classified collection and It is conducive to the
To develop a full electrical wet
Electric garbage transfer of domestic waste of Company's continuous
garbage collection &
truck with places such as tenement R&D advancement towards high-
transportation truck with
detachable back residences, towns and villages, completed tech innovative enterprises and
airtight transportation and zero
container commercial area, tourist breakthroughs in technical
dripping
attractions, schools, etc., so as difficulties.
to fill our small sanitation
garbage removal spectrum
To develop a full electrical
direct-drive barrel road
It is conducive to the
sweeper product mainly used
Full electrical Company's continuous
for the sweeping and cleaning To develop a full electrical,
direct-drive R&D advancement towards high-
of urban auxiliary roads, urban direct-drive, articulated, quiet,
articulated barrel completed tech innovative enterprises and
villages and other narrow efficient, and durable product
road sweeper breakthroughs in technical
areas, in response to the trend
difficulties.
and demand for new energy in
the industry
To realize the advantages of It is conducive to the
To meet the market demand light-weight, small, durable, Company's continuous
Full electrical
for mechanized, new energy R&D zero-emission, and low noise advancement towards high-
sidewalk/auxiliary
washing of narrow paths such completed without compromising the tech innovative enterprises and
road washer
as sidewalks washing capability of the breakthroughs in technical
product difficulties.
To stockpile mowing To complete the stockpiling of It is conducive to the
Multi-functional R&D
equipment technology and mowing equipment technology Company's continuous
sweeper/mower completed
expand the field of application and the development of the advancement towards high-
29
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
device for multi-functional sweeper prototype tech innovative enterprises and
breakthroughs in technical
difficulties.
It is conducive to the
11T light-weight To solve the airtightness Company's continuous
airtight leakage-free challenge of leakage-free R&D To develop an airtight leakage- advancement towards high-
compression garbage truck's trash completed free compression garbage truck tech innovative enterprises and
garbage truck containers. breakthroughs in technical
difficulties.
To solve the customer's To meet the customer's It is conducive to the
18T short boom problem of occupying a problem of occupying a smaller Company's continuous
Dongfeng smaller section of the road R&D section of the road during advancement towards high-
commercialized during vehicle operation and completed vehicle operation and simple tech innovative enterprises and
wall cleaning truck the complicated operation of operation of adjusting the breakthroughs in technical
adjusting the boom boom difficulties.
It is conducive to the
To expand the array of our
To develop a specialized truck Company's continuous
products and meet the demand
12T tall tree R&D for the pruning of roadside advancement towards high-
for trimming roadside trees
pruning truck completed trees in the cities, highways, tech innovative enterprises and
and the pruning and
and tourist attractions breakthroughs in technical
beautifying of tall branches
difficulties.
Information about R&D personnel
2021 2020 Change (%)
Number of R&D personnel 1,407 1,356 3.76%
R&D personnel as percentage
10.53% 15.54% -5.01%
of total employees
Education background of R&D
—— —— ——
personnel
Bachelor‘s degree 1,064 1,082 -1.66%
Master's degree 303 223 35.87%
Doctoral degree 6 2 200.00%
College degree 34 49 -30.61%
Age composition of R&D
—— —— ——
personnel
< 30 years 647 586 10.41%
30~40 years 596 590 1.02%
> 40 years 114 117 -2.56%
Information about R&D investments
2021 2020 Change (%)
R&D investments (RMB) 289,920,069.26 264,110,819.71 9.77%
R&D investments percentage of
2.45% 1.84% 0.61%
sales revenue
Capitalized R&D investments
27,300,941.97 9,433,487.52 189.40%
(RMB)
Capitalized R&D investments
as percentage of total R&D 9.42% 3.57% 5.85%
investments
Reasons and impacts of material change in R&D personnel composition
□ Applicable √ Not Applicable
Reasons for material YoY change in the percentage of total R&D investments in operating revenue
30
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
□ Applicable √ Not Applicable
Reasons and rationale for significant change in capitalization rate of R&D investment
□ Applicable √ Not Applicable
5. Cash flow
Unit: RMB
Item 2021 2020 YoY change (%)
Subtotal of cash inflows from
14,872,489,012.69 15,584,916,372.80 -4.57%
operating activities
Subtotal of cash outflows from
14,063,270,292.56 13,896,202,281.05 1.20%
operating activities
Net cash flows from operating
809,218,720.13 1,688,714,091.75 -52.08%
activities
Subtotal of cash inflows from
5,412,369,009.46 5,451,867,664.79 -0.72%
investing activities
Subtotal of cash outflows from
6,534,593,586.86 6,335,579,681.05 3.14%
investing activities
Net cash flows from investing
-1,122,224,577.40 -883,712,016.26 26.99%
activities
Subtotal of cash inflows from
2,901,823,101.45 5,922,067,481.72 -51.00%
financing activities
Subtotal of cash outflows from
3,125,894,632.23 4,680,215,496.91 -33.21%
financing activities
Net cash flows from financing
-224,071,530.78 1,241,851,984.81 -118.04%
activities
Net increase in cash and cash
-539,079,213.51 2,046,145,151.54 -126.35%
equivalents
Explanation on main impact factor of significant change of the data YoY
√ Applicable □ Not Applicable
(1) Net cash generated from operating activities decreased by 52.08% YoY, mainly due to a) the expansion of business scale in
2020 led to an increase in accounts payable at the end of the reporting period, which was paid in the current period; b) incr ease in
purchase expenses due to early stocking in the current period.
(2) Cash generated from financing activities decreased by 51.00% YoY, mainly due to company's issuance of convertible
corporate bonds in the previous year.
(3) Cash used in financing activities decreased by 33.21% YoY, mainly attributable to decrease in repayment of bank loans
compared with the prior period.
Explanation on main reasons leading to the material difference between net cash flows from operating activities during the Re porting
Period and net profit for the year
□ Applicable √ Not Applicable
V. Analysis of Non-Core Business
√ Applicable □ Not Applicable
Unit: RMB
Percentage of total
Amount Reasons for generation Recurrent or non-recurrent
profit
31
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Mainly comprises performance
compensation of the original RMB 36,885,135.08 is the
shareholders of Greenlander returns on long-term equity
Environmental of RMB investments calculated using
Investment income 239,933,995.59 29.20%
163,460,620.00, return on the equity method, which is
investment recognized using the recurrent; the other portion is
equity method, and returns on non-recurrent.
wealth management product.
Gain or loss on
changes in fair -73,074,674.05 -8.89% -- No
value
Impairment of Mainly as a result of provision of
-230,940,495.92 -28.10% No
assets goodwill impairment loss
Non-operating
10,028,024.42 1.22% -- No
income
Non-operating
11,786,454.06 1.43% -- No
expenses
VI. Assets and Liabilities
1. Material changes of asset items
Unit: RMB
December 31, 2021 January 1, 2021 Change in
Reason for material
As a percentage As a percentage percentage change
Amount Amount (%)
of total assets of total assets
Cash and cash
4,583,245,371.02 16.18% 5,904,127,970.85 19.59% -3.41% --
equivalents
Accounts
4,946,704,963.71 17.46% 5,564,834,864.04 18.46% -1.00% --
receivable
Contract assets 140,367,802.53 0.50% 170,840,655.62 0.57% -0.07% --
Inventories 1,124,149,719.01 3.97% 1,305,177,407.85 4.33% -0.36% --
Investment
1,837,703.68 0.01% 2,009,006.98 0.01% 0.00% --
properties
Long-term equity
603,580,781.31 2.13% 318,243,332.69 1.06% 1.07% --
investment
Fixed assets 1,758,052,005.19 6.21% 1,640,546,747.67 5.44% 0.77% --
Construction in
224,068,633.86 0.79% 70,735,483.95 0.23% 0.56% --
progress
Right-of-use
25,505,911.86 0.09% 30,945,067.78 0.10% -0.01% --
assets
Short-term
439,024,733.46 1.55% 1,657,905,376.55 5.50% -3.95% --
borrowings
Contract
210,432,628.98 0.74% 181,051,683.90 0.60% 0.14% --
liabilities
Long-term
1,697,742,767.72 5.99% 765,643,457.78 2.54% 3.45% --
borrowings
Lease liabilities 18,523,740.10 0.07% 23,243,848.61 0.08% -0.01% --
Intangible assets 5,319,721,844.23 18.78% 4,875,729,418.41 16.18% 2.60% --
Offshore assets account for high proportion
□ Applicable √ Not Applicable
32
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
2. Assets and liabilities measured at fair value
√ Applicable □ Not Applicable
Unit: RMB
Cumulativ
Gain/loss on e changes
Accrual of Purchase Sales amount
Opening changes in fair in fair Other Closing
Item impairment in amount in the in the current
balance value in the value changes balance
current period current period period
current period included
in equity
Financial assets
1. Trading
financial assets
127,192,985 - 51,165,265.6
(exclusive of 5,263.80 0.00
.11 76,032,983.26 5
derivative
financial assets)
-
2. Derivative
824,750.00 503,500.27 1,328,250.2 0.00
financial assets
7
4. Investments in -
26,070,000. 15,702,971.
other entity 4,280,000.00 6,087,028.9
00 01
instrument 9
-
Subtotal of 154,087,735 - 51,165,265.6 15,702,971.
4,280,000.00 5,263.80 7,415,279.2
financial assets .11 75,529,482.99 5 01
6
-
154,087,735 - 51,165,265.6 15,702,971.
Total 0.00 4,280,000.00 5,263.80 7,415,279.2
.11 75,529,482.99 5 01
6
Financial
810,300.00 -431,400.00 -378,900.00 0.00
liabilities
Other changes
Other changes were due to the transfer of derivative financial assets and financial liabilities from Foshan Yingtong Electric
Material Co., Ltd. (hereinafter referred to as "Foshan Yingtong") following its disposal during the current period.
Indicate whether any material changes occurred to the measurement attributes of the major assets of the Company during the
reporting period.
□ Yes √ No
3. Restricted asset rights as of end of reporting period
Carrying amounts at Reason for restriction
Item
the end of the period
Deposits, certificate of deposit, frozen litigation
Cash and cash equivalents 464,498,485.30
preservation, escrow account
Accounts receivable 226,481,841.35 Pledged
Notes receivable - bank acceptance 5,050,609.92 Pledged
Notes receivable - trade acceptance 14,668,452.95 Pledged
Receivable financing 143,994,957.80 Pledged
Long-term account receivable and non-current assets due 49,479,996.55 Factoring financing with recourse
within one year
Fixed assets 514,793,694.20 Mortgaged
Intangible assets 215,913,237.17 Mortgaged
33
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
100% equity interests of Funan Greenlander Environmental 63,725,949.84
Protection Co., Ltd.
100% equity interests of Shouxian Greenlander New Energy 83,655,768.30
Co., Ltd.
Mortgaged [Note]
100% equity interests of Xiantao Greenlander 218,180,606.50
Environmental Protection Power Co., Ltd.
100% equity interests of Poyang Greenlander 61,177,347.25
Environmental Protection Power Co., Ltd.
100% equity interests of Lianjiang Greenlander New Energy 25,074,902.82 Frozen for litigation preservation
Co., Ltd.
Total 2,086,695,849.95 --
[Note] The pledged amount is the net assets of the Company's share of equity.
VII. Investments
1. Overview
□ Applicable √ Not Applicable
2. Significant equity investments made in the reporting period
□ Applicable √ Not Applicable
3. Significant non-equity investments ongoing in the reporting period
□ Applicable √ Not Applicable
4. Financial investments
(1) Securities investments
√ Applicable □ Not Applicable
Unit: RMB
Gain/loss
Cumulati
Carrying on Carrying
Accounti ve Purchase Sales Gain/loss
amounts changes amounts
Security Initial ng changes amount amount during Accounti
Securities Stock at the in fair at the Source of
abbreviati investme measure in fair in the in the the ng
category code beginnin value in end of funds
on nt cost ment value current current reporting subject
g of the the the
model included period period period
period current period
in equity
period
Domesti
Fair Original
cs/overs - - Trading
3,019,5 value 126,067 50,095, capital
eas- 600340 CFLD 73,125, 75,971, 0.00 financia
00.00 measure ,500.00 697.15 contributi
listed 000.00 802.85 l assets
ment on
stock
Domesti Fair Purchase
- - Trading
cs/overs 002161 Invengo 1,662,2 value 1,117,29 1,052,9 d from
25,890. 64,343. 0.00 financia
eas- 99.72 measure 3.21 50.04 secondar
93 17 l assets
listed ment y market
34
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
stock
Domesti
Fair Purchase
cs/overs Trading
Xidame 2,095.8 value 3,017.5 2,525.8 d from
eas- 605155 -433.62 -491.69 0.00 financia
n 3 measure 2 3 secondar
listed l assets
ment y market
stock
Domesti
Fair Purchase
cs/overs Trading
Yiming 2,698.5 value 5,174.3 7,157.4 1,983.0 d from
eas- 605179 -383.83 0.00 financia
Food 3 measure 8 0 2 secondar
listed l assets
ment y market
stock
Domesti
Fair Purchase
cs/overs Fuchun Trading
2,992.5 value 1,747.5 2,992.5 4,165.2 1,172.7 d from
eas- 605189 Dye and 0.00 financia
0 measure 0 0 5 5 secondar
listed Weave l assets
ment y market
stock
Domesti
Fair Purchase
cs/overs Xinya Trading
2,271.3 value 2,749.6 2,271.3 2,769.9 d from
eas- 605277 Electron 498.68 0.00 financia
0 measure 8 0 8 secondar
listed ic l assets
ment y market
stock
Other securities
investments held at the end 0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
of the reporting period
- -
4,691,8 127,192 5,263.8 51,165,
Total -- 73,147, 0.00 76,032, 0.00 -- --
57.88 ,985.11 0 265.65
211.20 983.26
Disclosure date of the
board meeting
April 23, 2018
announcement approving
the securities investments
Disclosure date of the
general meeting
announcement approving May 16, 2018
the securities investments
(if any)
(2) Derivatives investments
□ Applicable √ Not Applicable
No such cases in the reporting period.
5. Use of funds raised
√ Applicable □ Not Applicable
(1) Overall use of funds raised
√ Applicable □ Not Applicable
Unit: RMB 10,000
Total Accumulat Total Accumulat Proportion Total Raised
Total Purpose and
amount of ive amount of ive of amount of funds
Fund-raising amount of tracking of
Year raised amount of raised funds amount of accumulati unused left
type funds unused raised
funds used raised that changed raised ve raised raised unused
raised funds
in the funds used purposes funds that funds that funds for >2
35
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
current during the changed changed years
period reporting purposes purposes
period
The Proposal on
Using Part of
the Idle Raised
Funds to
Replenish
Working Capital
was deliberated
and approved at
the 15th
Meeting of the
ninth Board of
Directors and
the 14th
Meeting of the
ninth Board of
Supervisors held
by the Company
on October,22,
2021, allowing
Public the Company to
offering of use idle raised
145,733.6
2020 convertible 10,106.41 27,569.8 0 0 0.00% 118,728.9 funds of no 0
2
corporate more than RMB
bonds 1 billion for
temporary
replenishment of
working capital,
which shall be
used for the
production and
operation related
to the
Company's main
businesses with
a tenor of no
more than 12
months as of the
date when the
Proposal was
deliberated and
approved by the
Board of
Directors.
145,733.6
Total -- 10,106.41 27,569.8 0 0 0.00% 118,728.9 -- 0
2
Explanation of the overall use of funds raised
According to the Approval of the Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group
Co., Ltd. (CSRC Permit [2020] No. 2219) issued by the China Securities Regulatory Commission, the lead underwriter of the
Company, China Renaissance Securities (China) Co., Ltd. (formerly known as "Huajing Securities", hereinafter referred to as
Huaxing Securities) issued 14,761,896 convertible corporate bonds (hereinafter referred to as CB) to the public with the offe ring
price of RMB 100 and a par value of RMB 100 for each CB, raising a total of RMB 1,476,189,600.00. Specifically, priority
allotment of 9,405,386 CBs were issued to original shareholders of the Company, accounting for 63.71% of the total amount of this
public offering; 5,304,730 CBs were issued to public investors through online channels, accounting for 35.94% of the total amount
of this public offering; 51,780 CBs were to be underwritten by the lead underwriter, accounting for 0.35% of the total amount of
36
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
this public offering. Funds raised in this offering had been remitted to the Company's raised fund supervision account by the lead
underwriter Huaxing Securities on November 10, 2020, and the amount actually received after deducting RMB 15,238,100 of
underwriting and sponsorship fees (net of tax) was RMB 1,460,951,500. After deducting RMB 3,615,300 (net of tax) of external
fees that were directly related to CB such as online offering expenses, printing fee for the prospectus, fees of the reporting
accountant, counsel fee, credit rating fee, information disclosure expenses, and issuance commission fee, the net amount of raised
funds from this offering was RMB 1,457,336,200. The availability of the above-mentioned raised funds has been verified by Pan-
China Certified Public Accountants LLP in its Capital Verification Report (T.J.Y. [2020] No.490).
As of December 31, 2021, the accumulated use of raised funds was RMB 275,698,000, and the total amount of raised funds
not yet used was RMB 1,187,289,000.
(2) Committed projects of raised funds
√ Applicable □ Not Applicable
Unit: RMB 10,000
Accumulat
Whether Investment Date when
Committed Adjusted The ive Whether Whether
projects progress as the Benefits
investment Total total investment investment the there are
have been at the end projects realized
projects and amount investme amount amount as estimated material
changed of the are ready during the
investment of of funds nt during the at the end benefits changes in
(including reporting for their reporting
excessive raised raised amount reporting of the are the project
partial period intended period
funds (1) period reporting realized feasibility
change) (3)=(2)/(1) use
period (2)
Committed investment projects
The project of the
comprehensive 129,638. 129,638. December Not
No 10,106.41 11,474.67 8.85% 1,175.26 No
smart sanitation 49 49 31, 2022 applicable
allocation center
No benefit
Replenishment of 16,095.1 16,095.1 December Not
No 0 16,095.13 100.00% generated No
working capital 3 3 31, 2020 applicable
separately
Subtotal of
committed 145,733. 145,733.
-- 10,106.41 27,569.8 -- -- 1,175.26 -- --
investment 62 62
projects
Investment of excessive raised funds
Not applicable
Repayment of
-- 0 0 0 0 0.00% -- -- -- --
bank loans (if any)
Replenishment of
working capital (if -- 0 0 0 0 0.00% -- -- -- --
any)
Subtotal of
investment of
-- 0 0 0 0 -- -- 0 -- --
excessive raised
funds
145,733. 145,733.
Total -- 10,106.41 27,569.8 -- -- 1,175.26 -- --
62 62
Cases and reasons
for failing to
realize the planned
progress or None
predicted return
(by specific
projects)
Explanations of
the material None
changes in the
37
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
project feasibility
Amount, purpose,
and progress of
Not applicable
excessive raised
funds
Location changes
in the
implementation of
Not applicable
investment
projects of the
raised funds
Adjustments to the
implementation
method of
Not applicable
investment
projects of the
raised funds
Early investment
and placement of
the investment Not applicable
projects of the
raised funds
Applicable
The Proposal on Using Part of the Idle Raised Funds to Replenish Working Capital was deliberated and
approved at the 10th Extraordinary Meeting of the ninth Board of Directors and the 9th Extraordinary Meeting of
the ninth Board of Supervisors held by the Company on December 4, 2020, allowing the Company to use idle
raised funds of no more than RMB 1 billion for temporary replenishment of working capital, which shall be used
for the production and operation related to the Company's main businesses for a period of no more than 12
months as of the date when the Proposal was deliberated and approved by the Board of Directors.
Temporary The Company issue d the Announcement on the Early Return of Funds Raised for Temporary Replenishment
replenishment of of Working Capital on October 21, 2021, in which the Company returned all the above-mentioned RMB 1 billion
working capital of funds raised for temporary replenishment of working capital to the relevant designated account for funds
with the idle raised on October 20, 2021 in advance for a period not exceeding 12 months.
raised funds
The Proposal on Using Part of the Idle Raised Funds to Replenish Working Capital was deliberated and
approved at the 15th Meeting of the ninth Board of Directors and the 14th Meeting of the ninth Board of
Supervisors held by the Company on October 22, 2021, allowing the Company to use idle raised funds of no
more than RMB 1 billion for temporary replenishment of working capital, which shall be used for the production
and operation related to the Company's main businesses with a tenor of no more than 12 months as of the date
when the Proposal was deliberated and approved by the Board of Directors. As of December 31, 2021, the
balance of the idle raised funds used by the Company for temporary replenishment of working capital was RMB
1,000,000,000.
The amount of
and reasons for
the balance of the
Not applicable
raised funds from
the project
implementation
The Proposal on Using Part of the Idle Raised Funds to Replenish Working Capital was deliberated and
approved at the 15th Meeting of the ninth Board of Directors and the 14th Meeting of the ninth Board of
Supervisors held by the Company on October 22, 2021, allowing the Company to use idle raised funds of no
Purpose and more than RMB 1 billion for temporary replenishment of working capital, which shall be used for the production
tracking of the and operation related to the Company's main businesses with a tenor of no more than 12 months as of the date
unused raised
when the Proposal was deliberated and approved by the Board of Directors. As of December 31, 2021, the
funds
balance of the idle raised funds used by the Company for temporary replenishment of working capital was RMB
1,000,000,000. The other unused raised fund of RMB 187,289,000 were kept in the designated account for funds
raised in the form of demand deposits to be used for the construction of the corresponding investment projects.
Problems in the None
use of raised funds
38
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
and disclosure, or
other cases
(3) Changed projects of raised funds
□ Applicable √ Not Applicable
No such cases in the reporting period.
Ⅷ. Sale of Major Assets and Equity Investments
1. Sale of major assets
□ Applicable √ Not Applicable
No such cases in the reporting period.
2. Sale of major equity investments
√ Applicable □ Not Applicable
Net Propor
Whether
profit tion of
the
contribut the net
impleme
ed by the profit
ntation
equity contrib
Whether is on
investme uted to Related
the schedule
nt to the Impact on the party
Pricing Whether equity , and if
listed the listed relations
Transact principle it is a investme not, the
Equity company Company compa hip with Discl
Counter Selling ion price of sale related nts reasons Disclosure
investme from the from the ny the osure
party date (RMB of equity party involved and document
nts sold beginnin sale of the from transacti date
10,000) investme transacti have all measure
g of the equity the on
nt on been s taken
reporting investment sale of counterp
transferr by the
period to equity arty
ed Compan
the invest
y should
selling ment
be
date to total
explaine
(RMB net
d
10,000) profit
The sale of For details,
the wire please refer
enamel to the
business is Announcem
51% of based on ent on the
equity the overall Completion
Guangdo interest developme of the
ng in nt strategy Transfer of
Yinghe Foshan to continue At fair Marc 51% Equity
Enterpris Yington February to focus on - value h Interests in
25,500 735.48 the core No None Yes Yes
e g 28, 2021 3.55% market 17,20 Subsidiaries
Manage Electrica business of price 21 by Public
ment l "smart Listing
Co., Ltd. Material sanitation" (Announce
s Co., , optimize ment No.
Ltd. resource 2021-014)
allocation disclosed on
and asset Cninfo
structure, (www.cninf
and o.com.cn/)
strategicall
39
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
y divest
non-core
business
assets,
which has
a positive
impact on
the
company's
operations.
IX. Analysis of Major Subsidiaries and Joint Stock Companies
√ Applicable □ Not Applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company's net profit
Unit: RMB
Registered capital
Type of Principal Operating
Company (Unit: RMB Total assets Net assets Revenue Net profit
company activities profit
10,000)
Changsha
Zoomlion
Smart 13,832,759,9 7,211,512,81 8,861,710,57 896,221,466. 785,151,698.
Environment Subsidiary 235152.98
sanitation 09.86 6.31 4.04 35 46
al Industry
Co., Ltd.
Shenzhen
Greenlander
1,888,558,41 50,356,767.9 352,289,730. 10,948,736.6 10,881,641.7
Environment Subsidiary Others 15,000
0.13 0 86 6 8
al Protection
Co., Ltd.
Guangdong
Infore 926,920,963. 112,482,176. 292,885,322.
Subsidiary Others 11,000 4,122,576.57 6,253,847.02
Technology 55 21 94
Co., Ltd.
Foshan
Infore Water
546,349,317. 361,779,370. 161,634,469. 57,649,272.9 50,586,828.1
Environment Subsidiary Others 30,000
95 88 82 0 2
Investment
Co., Ltd.
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not Applicable
Acquisition and
disposal of
Company name Effects on the overall operations and performance
subsidiaries during
the reporting period
Xiangtan Yinglian Environmental Industry Co.,
Incorporation Positive effects on the Company’s business
Ltd.
Jinzhou Yinglian Urban Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Handan Yinglian Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Ordos Environmental Sanitation Management
Incorporation Positive effects on the Company’s business
Co., Ltd.
Luanzhou Yinglian Environmental Service Co.,
Incorporation Positive effects on the Company’s business
Ltd.
Guangzhou Huadu Yinglian Environment Co.,
Incorporation Positive effects on the Company’s business
Ltd.
40
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Fenghuang Yinglian Environmental Service Co.,
Incorporation Positive effects on the Company’s business
Ltd.
Xinning Yinglian Urban Environmental Service
Incorporation Positive effects on the Company’s business
Co., Ltd.
Wanning Yinglian Environmental Industry Co.,
Incorporation Positive effects on the Company’s business
Ltd.
Foshan Gaoming Yingde Smart City Management
Incorporation Positive effects on the Company’s business
Co., Ltd.
Huayuan Environmental Sanitation Management
Incorporation Positive effects on the Company’s business
Co., Ltd.
Zhongwei Yinglian Urban Environmental Service
Incorporation Positive effects on the Company’s business
Co., Ltd.
Guangzhou Yingsheng Environmental Sanitation
Incorporation Positive effects on the Company’s business
Service Co., Ltd.
Yiyang Yinglian Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Shenzhen Infore Enviro Robot Co., Ltd. Incorporation Positive effects on the Company’s business
Sanya Yinghe Environmental Sanitation Service
Incorporation Positive effects on the Company’s business
Co., Ltd.
Wuhan Infore Zhonghui Environmental
Incorporation Positive effects on the Company’s business
Protection Technology Co., Ltd.
Chongyang Yinglian Environmental Protection
Incorporation Positive effects on the Company’s business
Co., Ltd.
Pu'an Yinghe Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Guangzhou Yinglian Environmental Sanitation
Incorporation Positive effects on the Company’s business
Service Co., Ltd.
Wuhu Infore Zoomlion Environmental
Incorporation Positive effects on the Company’s business
Technology Co., Ltd.
Suzhou Xiangcheng Yinglian Environmental
Incorporation Positive effects on the Company’s business
Industry Co., Ltd.
Susong Yinghe Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Foshan Shunde Yingsheng Urban Environmental
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Taizhou Zhongying Urban Environmental Service
Incorporation Positive effects on the Company’s business
Co., Ltd.
Liaocheng Yinghe Environmental Sanitation
Incorporation Positive effects on the Company’s business
Service Co., Ltd.
Shenzhen Tongying Environmental Industry Co.,
Incorporation Positive effects on the Company’s business
Ltd.
Shenzhen Zhongfu Environmental Technology
Incorporation Positive effects on the Company’s business
Co., Ltd.
Wuhai Yinglian Environmental Engineering Co.,
Incorporation Positive effects on the Company’s business
Ltd.
Jian' ou Yingsheng Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Heping Liansheng Environmental Development
Incorporation Positive effects on the Company’s business
Co., Ltd.
Zhongshan Yinglian Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Ruili Yinglian Environmental Industry Co., Ltd. Incorporation Positive effects on the Company’s business
Zongyang Tongying Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
41
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Guangdong Infore Smart Technology Co., Ltd. Incorporation Positive effects on the Company’s business
Fengxian Zhongying Urban Environmental
Incorporation Positive effects on the Company’s business
Sanitation Management Co. , Ltd.
Shanghai Yingwofeng Environment Technology
Incorporation Positive effects on the Company’s business
Development Co., Ltd.
Yichang Yinglian Urban Environmental Service
Incorporation Positive effects on the Company’s business
Co., Ltd.
Huai' an Yinghe Environment Technology Co.,
Incorporation Positive effects on the Company’s business
Ltd.
Zhangjiagang Zhongying Environmental
Incorporation Positive effects on the Company’s business
Development Co., Ltd.
Guangde Yinghe Environmental Sanitation
Incorporation Positive effects on the Company’s business
Development Co., Ltd.
Foshan Shunde Yinghong Smart Environmental
Incorporation Positive effects on the Company’s business
Sanitation Management Co., Ltd.
Zhongshan Yinglian Urban Environmental
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Taizhou Zhongying Environmental Management
Incorporation Positive effects on the Company’s business
Co., Ltd.
Weihui Yinglian Environmental Service Co., Ltd. Incorporation Positive effects on the Company’s business
Baisha Yinghe Environmental Sanitation Service
Incorporation Positive effects on the Company’s business
Co., Ltd.
Zhoushan Yinghe Environmental Sanitation
Incorporation Positive effects on the Company’s business
Service Co., Ltd.
Wuhan Tongying Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Nanchang Yingsheng Environmental Protection
Incorporation Positive effects on the Company’s business
Service Co., Ltd.
Wuhu Yinghe Environmental Sanitation
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Huaibei Yinghe Urban Environmental Service
Incorporation Positive effects on the Company’s business
Co., Ltd.
Hanshou Jinglan Environmental Protection Co.,
Incorporation Positive effects on the Company’s business
Ltd.
Chongqing Tongliang Fenglan Environmental
Incorporation Positive effects on the Company’s business
Protection Technology Co., Ltd.
Shenzhen Yingli Environmental Sanitation
Incorporation Positive effects on the Company’s business
Service Co., Ltd.
Guangrao Yinghe Urban Service Co., Ltd. Incorporation Positive effects on the Company’s business
Anning Tongying Environmental Sanitation
Incorporation Positive effects on the Company’s business
Service Co., Ltd.
Changsha Fenglan Environmental Protection
Incorporation Positive effects on the Company’s business
Technology Co., Ltd.
Foshan Yinghe Investment Co., Ltd Incorporation Positive effects on the Company’s business
Guangdong Yinglian Urban Environmental
Incorporation Positive effects on the Company’s business
Management Co., Ltd.
Liling Zhongfeng Environmental Industry Co., Asset optimization, no major impact on the company's
De-registration
Ltd. production, operation and performance
Asset optimization, no major impact on the company's
Foshan Yingtong Electrical Materials Co., Ltd. Selling
production, operation and performance
Hunan Ningxiang Renhe Garbage Comprehensive Asset optimization, no major impact on the company's
Selling
Treating Co., Ltd. production, operation and performance
Guangdong Yingling Testing Technology Co., Asset optimization, no major impact on the company's
Selling
Ltd. production, operation and performance
42
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Fact Sheet of major subsidiaries
X. Structured Entities Controlled by the Company
□ Applicable √ Not Applicable
XI. Future Prospects of the Company
(I) Market opportunities
1. The 2021 national policies are favorable for the development of sanitation industry
On January 19, the State Administration of Market Regulation and seven other departments issued the Guidelines on Promoting
the Construction of Rural Living Environment Standard System. The framework, the construction standards, and the implementation
and promotion standards of the rural living environment standard system were identified from five aspects, namely: general
principles, rural toilets, domestic waste, domestic sewage, and the village image.
On February 21, the No. 1 Central Document - Guidelines on Pushing Forward All-Round Rural Revitalization and Speeding
Up Agriculture and Countryside Modernization was published. The State Council offered directions of action for countryside
construction and ecological optimization in the construction of rural living environments, covering many aspects including "toilet
revolution", sewage treatment and waste management.
On May 6, the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development
published the 14th Five Year Plan Development Plan for Urban-Rural Domestic Waste Classification and Disposal Facilities. Based
on the country's 14th Five Year Plan, this plan is focused on the classification and disposal of domestic waste and set out detailed
planning and goal setting for the next five years from various dimensions and layers. From this plan, we could see the market
direction and market size during the 14th Five Year Plan period.
On July 2, the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development
published the Guidelines on the Measuring and Charging of Non-Residential Kitchen Waste Disposal. The guideline requires that
"the measuring and charging of kitchen waste disposal shall be promoted"; "non-residential kitchen waste quota management and
over-quota progressive price increase mechanism shall be established gradually"; "the clarification of the management and operatio n
mechanism of the collection, transportation, and disposal non-residential kitchen waste shall be accelerated"; and "the registration
and management of non-residential kitchen waste drainage shall be improved".
On July 16, online trading was enabled in the National Carbon Emissions Trading Market. According to the reports, the first
compliance cycle encompasses the entire year of 2021, covering approximately 4.5 billion tons of CO2, making it the world's largest
carbon market. On the first day, the total volume of transactions reached 4.104 million tons, with a total transaction amount of RMB
210 million.
On October 26, the State Council published the Action Plan for Reaching Peak Carbon Emission before 2030. Domestic waste
reduction and recycling, as important aspects of carbon emission reduction, are incorporated into the action plan, mainly including:
the construction of a domestic waste collection and disposal system, treatment for plastic pollution throughout the pollution chain, the
promotion of domestic waste incineration treatment, the reduction of the proportion of landfills, the exploration of waste recycling
technology that caters to the characteristics of kitchen waste in Chinese households, and the promotion of sewage recycling.
On November 12, the Ministry of Housing and Urban-Rural Development circulated the Construction Standard for Domestic
Waste in Stock Treatment Projects for public comments. This is the first national standard regarding waste in stock.
On December 5, the General Office of the Communist Party Central Committee and the General Office of the State Council
published the Five-Year (2021-2025) Action P lan for the Remediation and Improvement of Rural Living Environment. The action
plan requires that "the rural toilet revolution shall be firmly implemented", "the promotion of rural domestic sewa ge treatment shall
43
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
be accelerated", "the standard of rural domestic waste treatment shall be improved comprehensively", and "the general improve ment
of village images shall be promoted".
On December 15, the Ministry of Ecology and Environment and other 18 ministries and commissions jointly issued the Scheme
for the Construction of 'Zero-Waste Cities' during the 14th Five Year Plan. This scheme made detailed plans for the "zero-waste city
construction" in the next 5 years. The pilot "zero-waste city" would increase from "11+5" pilots to 100. This will further facilitate the
formation of green, low-carbon lifestyles, and promote the reduction and recycling of solid domestic waste.
2. The demand for sanitation services will continue to rise
Sanitation services are public service undertakings, and the source of revenue is the government budget with the nature of rigid
expenditure and is less affected by macroeconomic regulation factors. The business is featured by continuity and stability.
(1) The scale of demand for services driven by urbanization
As urbanization continues, the construction of urban roads will directly increase the area for road cleaning, urban housing,
compound construction, and urban greening, hence increasing the demand for sanitation eq uipment and urban cleaning services.
Furthermore, sanitation is one of the prerequisites for each province, city, and district to construct urban upgrades such as "national
civilized cities", "national hygienic cities", "national model cities of environmen tal protection", and "national ecological garden
cities". According to the National Bureau of Statistics and the Ministry of Housing and Urban-Rural Development, statistics show
that from 2015 to 2020, the area of road cleaning in China's cities and counties increased from 9.678 billion sqm to 12.606 billion
sqm, an overall increase of nearly 30.25%. The domestic waste clearing and removal volume in cities and counties increased fr om
258 million tons to 303 million tons, an overall increase of 17.54%. Driven by urbanization, in order to maintain the cleanliness and
sanitation of urban roads, residential compounds, and municipal gardens, as well as the normal transfer and treatment of dome stic
waste, the release of sanitation service demands is constantly facilitated.
(2) The "Beautiful Countryside" kick-started, and the rural sanitation market is gradually gaining momentum
The Five-Year (2021-2025) Action Plan for the Remediation and Improvement of Rural Living Environment requires that "the
rural toilet revolution shall be firmly implemented", "the promotion of rural domestic sewage treatment shall be accelerated", and
"the standard of rural domestic waste treatment shall be improved comprehensively". Against the backdrop of constructing "bea utiful
countryside" and integrating urban-rural sanitation, comprehensive treatment projects pushed on the overall county level are
introduced one after another. The rural sanitation market will usher in a sprint stage of further expansion. This will provide a huge
room for improvement for the sanitation services industry and even the sanitation industry as a whole.
(3) Continued promotion of waste classification and the continued release of market demands
In September 2020, President Xi Jinping chaired the Central Comprehensively Deepening Reforms Conference to deliberate and
approve Some Opinions on the Further Promotion of Domestic Waste Classification. The accelerated implementation of waste
classification policies would lead to an overturn of the traditional domestic waste collection and transportation system. The
traditional sanitation vehicles will no longer meet the needs of the classified collection and transportation. Domestic waste is divided
into four categories in all of the four disposal processes, namely "drop-off", "collection", "transportation", and "treatment". As such,
the corresponding traditional sanitation technology and equipment ushered in the demand for upgrading and transformation. Cou pled
with the investment demand for system smart upgrade, the market demands continue to be released.
(4) The adoption of new energy for carbon neutrality and sanitation equipment would be further accelerated
With relevant policies issued by local governments to make most of the updated sanitation vehicles towards new ene rgy
powered ones, the future procurement of new energy sanitation vehicles is expected to release constantly. The process of new energy
sanitation equipment in the next few years will be further accelerated. In November 2020, the New Energy Vehicles Develo pment
Plan (2021-2035) was published. The plan requires the proportion of new energy sanitation vehicles in the public sector in key areas
to reach 80%. Since 2012, the country has made a guiding policy to accelerate the cultivation of the new energy vehic le industry, and
has successively released important documents for its promotion. After a gestation period, the promotion of new energy sanitation
vehicles has gradually entered the outbreak period.
44
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(5) The improved increase in mechanization rate will drive the incremental volume of sanitation equipment market
The improved mechanization rate of the sanitation industry will reduce the cost of sanitation operations and relieve the fina ncial
burden of governments and enterprises. With the expansion of China's urban and rural road cleaning area, the mechanization rate of
the sanitation industry is gradually increasing. Based on the Urban-Rural Construction Statistical Bulletin released by the Ministry of
Housing and Urban-Rural Development, as of the end of 2020, the national urban road sweeping and cleaning area adopting
mechanical sweeping reached 9.756 billion sqm, with a mechanical sweeping rate of 76.10%. In China, the road sweeping and
cleaning area in counties covered by mechanical sweeping reached 2.851 billion sqm, with a mechanical sweeping rate of 73.90%. In
comparison, the mechanization rate of sanitation industry in the urban area of developed countries can usually reach 80%. As such,
there is still room for development in terms of the mechanization level of sanitation industry in China. In the future, as labor costs
continue to rise, the mechanization of sanitation operations will become the main development direction of the domestic sanit ation
market, and it will cover road cleaning, guardrail cleaning, waste collection & transportation, and other segments.
(6) The trend of aging population will drive the expansion of the sanitation equipment market
China's frequent urban minimum wage adjustments in recent years had a relatively great impact on the operating costs of
sanitation services enterprises. The traditional human-labored sanitation service model is featured by higher operating costs and
lower operational efficiency, hence increasing the operating pressure of enterprises engaged in the sanitatio n operation business.
Furthermore, China's elderly population is expected to reach 267 million by 2021, with an aging population of 18.9%, accordin g to
the National Committee on Aging Population. The aging trend will exacerbate the workforce deficit in the sanitation industry.
Meanwhile, with the diversification of job options, the number of young and middle-aged laborers who are willing to engage in
sanitation work is also decreasing. Therefore, improving the mechanization rate of sanitation industry and e xpanding the use of
sanitation equipment is not only a realistic need in the face of the labor market shortage, but also the requirement of the development
of urban sanitation level.
(7) Industrial breakthrough fueled by technological advancement
The rapid development of 5G and AI technology has widened the industrial border and opened up a slew of new opportunities.
Small-sized smart devices and smart services will be the new bonanza, introducing new variables and increments for the sector.
Smart, less humanized, or even unmanned sanitation will be a general trend.
(II) Business plan of 2021
In 2021, the Company closely revolved around its development strategy and annual operation plan, focusing on its core strategic
business, divesting and splitting off non-core principle businesses, and actively promoting smart sanitation, environmental
monitoring and solid waste treatment. It achieved its business plan relatively well for 2021. The operating target set at the beginning
of the year was to achieve an annual revenue of RMB 2.8 billion with a cumulative contract value of RMB 50 billion for the
Company's smart sanitation service solutions. The actual achieved cumulative contract value of the company's smart sanitation
service solutions reached RMB 45.884 billion, and the actual achieved an annual revenue was RMB 3.025 billion.
In 2021, the company completed its annual revenue target of RMB 2.8 billion for smart services, with an achievement rate of
108%; It did not complete its operation target of RMB 50 billion in total contract value, with an achievement rate of 91.77%. The
reason for the company's failure to achieve the operating target of total contract value is the decrease of orders with long cycles of
more than 5 years in the market. The annualized rate of the company's new marketable projects of 5 years and below has reached
81.5%, resulting in a slight decrease of the total contract value of orders obtained by the Company. In 2022, the Company will take
into account the market development trend, diversif y the business forms and actively attract short-and medium-cycle projects.
2022 Operation target: to achieve a cumulative contract value of RMB 60 billion for the Company's smart sanitation service
solutions; from 2020 to 2024, the planned cumulative contract value would be RMB 100 billion, so as to achieve an annual revenue
of RMB 10 billion.
The Company will continue to increase resource input in its strategic core business, smart environmental sanitation service,
striving to be one of the top-ranking enterprises in the industry in the next five years.
45
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
In 2022, the Company will continue to focus on the core business of Smart Sanitation. It will firmly adhere to the operation
strategy of "technology leadership and product leadership". It will further strengthen and consolidate its advantages in sanitation
equipment and its smart and interconnected environmental sanitation service, and maintain the leading position in the industry.
(III) Plan for use of funds
2022 is a key period for the Company's rapid development. Given the relatively large demand for funds, the Company will
formulate a funding supply and demand plan to match the company's development. The Company will make full use of its own funds.
It will also further strengthen the management of accounts receivable while optimizing the financial structure to provide strong
financial guarantee for the Company's business development and control financial risks. The source of funds is the optimization and
combination of multiple channels including the issuance of commercial paper, medium-term note, cash flow generated by operating
activities, bank loans.
(IV) Main risk factors that may adversely affect the achievement of the Company's future development strategies and business
objectives
1. Policy risks
With the growing emphasis on environmental protection and environmental treatment, the environmental and sanitation industry
is poised for unprecedented growth opportunities. The environmental and sanitation industry, on the other hand, is a typical policy-
driven industry that strongly relies on national industrial policies. Adjustments to macroeconomic policies, tax policies,
environmental industry policies and environmental management policies will affect the Company's performance.
Countermeasures: to ra ise the scientific decision-making capacity of managers and boost the Company's ability to resist policy
risks, the Company will pay careful attention to changes in national macroeconomic policies and strengthen research and analysis of
industry policy information.
2. Operation management risks
The Company's business scale is expanding, business types are diversifying, the target market is expanding, and the number of
subsidiaries is growing. The asset size, personnel scale, and organizational scale of the Company are all rapidly expanding. The
Company's organizational structure and management system are becoming increasingly complicated. Despite the fact that the
Company has developed a more comprehensive set of internal control management systems and impro ved them year after year, the
difficulty and risk of control are increasing due to differences in industry nature, geographical distribution, humanistic characteristics,
and corporate culture of each branch.
Countermeasures: the Company is concentrating on strengthening the management and risk control systems, further improving
the operation management system and business process, continuing to refine management, and strengthening the risk control and
culture of subsidiaries, all while strengthening the talent team.
3. Heightened market competition risks
The sanitation industry in China is an emerging comprehensive industry that is still in the early stages of marketization and has a
relatively low level of concentration. However, the industry is currently in a period of rapid growth. With its rapid growth, the
involvement of upstream and downstream enterprises, and the continuous participation of new enterprises in different sectors, market
competition will continue to intensify. The Company will likely face the risk of losing market share in the future.
Countermeasures: the Company will continue to pursue a technology-driven development strategy in order to preserve its
technological leadership in the industry and, as a result, solidify its market leadership.
Nothing in this report about future plans, performance forecasts, or other matters represents a commitment by the Company to
any investors or other third parties. Investors and related parties should maintain sufficient risk awareness in this regard.
46
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
XII. Visits Paid to the Company for Purposes of Research, Communication, Interview during
the Reporting Period
√ Applicable □ Not Applicable
Main
content of
discussion Reference of the study's
Time Venue Method Visitor type Visitor
and basic information
materials
provided
GF Fund, Galaxy Fund, HSBC
Jintrust, Goldstate, CITIC Capital,
China Universal Asset
Management, Essence Fund, PICC
Asset, BOC Investment, Three
Gorges Asset, GF Securities,
Soochow Securities, Essence
Securities, Changjiang Securities,
Shenwan Hongyuan, State Power
Investment, Yujin Investment, TF
Securities, Hongshang Assets,
Penghua Fund, Guosheng
Securities, Hua Chuang Securities,
CITIC Securities, Haitong
Securities, HuaAn Funds, Hua
For details, please refer
Chuang Securities, Everbright
Business to the Investor
Securities, CN-NL Waste Solution,
strategy and Relations Activities
Shanghai, Shizhi Fund, China Development
May 7, 2021 Field study Institution operation of disclosed by the
China Bank Securities, Zhonggeng Fund,
the Company on May 10,
Aegon-industrial Fund, CPIC, Ping
Company 2021 on the Cninfo
An, Yuan Xi Group, Zhonghai
(www.cninfo.com.cn).
Fund, Northeast Securities, Sinolink
Securities, Orient Securities, Huatai
Securities, Industrial Securities,
Western Leadbank Fund, Great
Abundance Year Asset, Riverlink
Capital, EI (Shanghai) Investment,
Huajin Securities, Central China
Securities, Nuode Fund, Nord
Engine Capital, Kaiyuan Securities,
Wanjia Asset, Jisheng Investment,
Purekind Fund, Shanxi Securities,
CICC, Founder Securities, Chino
Asset, Ping An Endowment
Insurance, BNB Wealth
Management
For details, please refer
Integrated to the Investor
Panorama Investors participated in the 2020 operations Relations Activities
May 18, 2021 Roadshow Others Others Infore Enviro online performance and industry disclosed by the
Global briefing trend of the Company on May 18,
Company. 2021 on Cninfo
(www.cninfo.com.cn)
Meeting BlackRock Asset Management Strategy and For details, please refer
June 29, 2021 By phone Institution
room North Asia Limited market to the Investor
47
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
orientation Relations Activities
of the disclosed by the
Company. Company on June 30,
2021 on Cninfo
(www.cninfo.com.cn)
Huatai Asset, Changjiang Pension,
PICC Asset, Southern Asset, CCB
Principal Asset, China Future
Capital, Greenwoods Asset,
CITICPE, GTS Fund, CMB Wealth
Management, New China Fund, GF
Securities, First Beijing Investment,
Changjiang Securities, Shanghai
Junxi Investment, Shenzhen Yujin
Fund, Bank of Communications
Schroder Fund, Shanrun
Investment, CITIC Capital
(Shenzhen) Asset Management Co.,
Ltd, GF Securities, Everbright For details, please refer
Securities Asset Management, to the Investor
Operations
Essence Securities, Great Relations Activities
August 23, Foshan, and R&D of
Field study Institution Abundance Year Asset, Shenzhen disclosed by the
2021 Guangdong the
Yujin Fund, Leixin Private Company on August
Company.
Investment Fund (Nanjing), Fu 23, 2021 on Cninfot
Venture Capital, Purekind Fund, (www.cninfo.com.cn)
Hangzhou Guangtian Investment,
Zhuhai Shengping Asset, Xizang
Yuancheng Investment, Shanghai
Minghe Investment, Purekind Fund,
Shandong Camel Asset, Sanya
Hongsheng Asset, GF Venture
Capital, Zhuhai Shengping Asset,
Tebon Fund, Chengdu Songhua
Asset, Shanghai UU Wealth
Investment, Zhuhai Shengping
Asset, Discovering Investment,
Fidelity Investment, Fullerton
Investment, etc.
Understandi
For details, please refer
ng the
to the Investor
GF Securities, Soochow Securities, business
Relations Activities
October 22, Guangdong, Changjiang Securities, Orient operation
Field study Institution disclosed by the
2021 China Securities, Zhongtai Securities, and R&D
Company on October
Industrial Securities, etc. direction of
22, 2021 on Cninfo
the
(www.cninfo.com.cn)
Company.
48
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part IV Corporate Governance
I. General Information of Corporate Governance
1. The Company continuously perfects its corporate governance structure in strict accordance with the requirements of the
Company Law, the Securities Law and the relevant laws and regulations of the China Securities Regulatory Commission. The Board
of Directors has four special committees, namely, Strategy Committee, Audit Committee, Nomination Committee, and Remuneration
& Appraisal Committee, dedicated to providing advice and recommendations to ensure the Board of Directors' deliberation and
decision-making are professional and efficient.
2. The Company convenes Annual General Meeting of Shareholders in strict accordance with the relevant provisions of the
Articles of Association and Rules of Procedure of General Meeting of Shareholders of the Company. The Board of Directors, which
is the decision-making body of the Company, conscientiously implements the resolutions of General Meetings of the Shareholders.
The Supervisory Committee exercises its supervisory function and powers in strict accordance with the regulations, and it supervise s
the financial affairs of the Company as well duty performance and actions of directors and senior management members, thus
safeguarding the legitimate rights and interests of the Company and all shareholders. The Management of the Company strictly
implements the resolutions of the General Meetings of Shareholders and the Meetings of the Board of Directors and executes
decisions. All functional departments and holding subsidiaries of the Company are responsible for the day-to-day operations.
3. During the reporting period, in order to standardize its insider information management, ensure confidentiality of insider
information and effective registration and management of insiders who have access to insider information, effectively prevent
securities violations of laws and regulations such as insider trading, maintain the fairness of information disclosure, and protect the
legitimate rights and interests of the general investors, the Company promptly, truthfully and fully recorded all the persons with
access to the insider information before disclosure at stages such as discussion and planning, demonstration and consultation ,
establishment and in phases such as reporting, transmission, preparation, examination, resolution, and disclosure, as well relevant
information archives regarding the content, time, place, basis and method, etc. for the insiders to know the insider informat ion, and
file with the relevant regulatory authorities to strictly prevent the occurrence of insider trading, pursuant to the laws and regulations
such as the Securities Law, the Management Measures for Information Disclosure by Listed Companies, the relevant provisions of
the Articles of Association, Information Disclosure Management Policy and the Policy on Internal Reporting of Significant Matters
of the Company, as well as the requirements of the Regulatory Guidelines for Listed Companies No. 5—the System for Registration
and Management of Insiders Who Have Access to Insider Information of Listed Companies.
4. The Company discloses information strictly in accordance with the provisions of the Company Law, the Securities Law, the
Stock Listing Rules of the Shenzhen Stock Exchange, and other relevant laws, regulations and normative documents, as well as the
Information Disclosure Management Policy, to ensure that it makes true, accurate, complete, timely and fair information disclosure to
increase the openness and transparency of its operations. The Company has received no disciplinary actions such as criticism and
reprimand from the stock exchange for issues relating to information disclosure. During the reporting period, there were no
governance irregularities such as the provision of undisclosed information to the controlling shareholder and the de facto controller.
5. During the reporting period, when material events occurred in the Company, there was no abnormal fluctuation in the stock
price arising from leakage of inside information. As part of its next steps, the Company will constantly improve its corporate
governance structure, further standardize corporate operations, and raise the level of corporate governance pursuant to relevant laws
and regulations as well as the requirements of the Shenzhen Stock Exchange.
As to the actual status of governance of the Company, indicate whether there is any material non-compliance with laws,
administrative regulations and the rules issued by the China Securities Regulatory Commission (CSRC) on the governance of listed
49
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
companies.
□ Yes √ No
As to the actual status of governance of the Company, there is no material non-compliance with laws, administrative regulations,
and the rules issued by the CSRC on the governance of listed companies.
II. Independe nce of the Company from the Controlling Shareholder and De Facto Controller
and on Ensuring Company's Assets, Personnel, Finance, Structure and Businesses and Other
Aspects
The Company is completely independent of the controlling shareholder in terms of businesses, personnel, assets, organization
and finance, etc., and has fully independent businesses and operation capacity. Details are as follows:
(1) Business independence: The Company's businesses are independent of the controlling shareholder, and the controlling
shareholder and its affiliates are not engaged in any businesses in competition with the Company.
(2) Personnel separation: The personnel of the Company are independent of the controlling shareholder, and the President, Chief
Financial Officer, Board Secretary and other senior management members of the Company do not hold positions other than directors
in the controlling shareholder, the financial officers of the Company do not have a part-time job in affiliated companies. The
Company has put in place independent policies on labor, personnel and remuneration management and established an independent
labor and personnel management department. Thus, its labor, personnel and remuneration management are completely independent.
(3) Integrity of assets: The Company owns independent and complete assets and has independent production, supply and sales
systems, and there is no horizontal competition between the Company and its controlling shareholder in the manufacturing an d
operation of the same products.
(4) Organizational independence: The Company is organizationally complete, and there is no superior-subordinate relationship
between its controlling shareholder and functional departments thereof and the Company and functional departments thereof. The
Company's Board of Directors, Supervisory Committee and other internal institutions operate completely independently.
(5) Financial separation: The Company's finance is entirely independent, with an independent financial department. It has also
established an independent accounting system and financial accounting management system responsible for independent accounting,
independent opening of bank accounts and independent tax payment.
III. Horizontal Competition
□ Applicable √ Not Applicable
IV. Annual and Extraordinary General Meetings Convened During the Reporting Period
1. Shareholders' meeting convened during the reporting period
Investor Date of the Disclosure
Meeting Type Meeting resolution
participation ratio meeting date
The Announcement on the Resolutions of
the First Extraordinary General Meeting of
The first
Shareholders in 2021 (Announcement No.:
extraordinary Extraordinary February 24, February 25,
59.51% 2021-012) published on the Securities
general meeting of general meeting 2021 2021
Daily, the Securities Times, the China
shareholders in 2021
Securities Journal, the Shanghai Securities
News and Cninfo
50
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(http://www.cninfo.com.cn), which are
media designated by the Company for
information disclosure
The Announcement on the Resolutions of
the 2020 Annual General Meeting of
Shareholders (Announcement No.: 2021-
The 2020 Annual Annual general 046) published on the Securities Daily, the
May 15,
General Meeting of meeting of 49.89% May 14, 2021 Securities Times, the China Securities
2021
Shareholders shareholders Journal, the Shanghai Securities News and
http://www.cninfo.com.cn, which are
media designated by the Company for
information disclosure
The Announcement on the Resolutions of
the Second Extraordinary General Meeting
of Shareholders in 2021 (Announcement
The Second No.: 2021-073) published on the Securities
Extraordinary Extraordinary September 06, September Daily, the Securities Times, the China
49.97%
General Meeting of general meeting 2021 07, 2021 Securities Journal, the Shanghai Securities
Shareholders in 2021 News and Cninfo
(http://www.cninfo.com.cn), which are
media designated by the Company for
information disclosure
2. Extraordinary general meeting of shareholders convened at the request of preference shareholders with
resumed voting rights
□ Applicable √ Not Applicable
V. Information of directors, supervisors and senior manage ment members
1. Basic information
Sharehol Sharehol
Sharehol Sharehol
ding ding
ding ding
number number Other Reasons
Incumbe number number
Start of End of (share) (share) increase/ for share
Name Position nt/Forme Gender Age (share) at (share) at
tenure tenure increase decrease decrease increase/
r beginnin end of
in the in the (share) decrease
g of the the
current current
period period
period period
Chairma
n of the Decembe Decembe
Incumbe 1,654,60 1,654,60
Ma Gang Board Male 43 r 04, r 26, 0 0 0 NA
nt 0 0
and 2014 2022
President
Septemb Decembe
Incumbe
Su Bin Director Male 44 er 06, r 26, 0 0 0 0 0 NA
nt
2021 2022
Kuang Decembe
Incumbe January
Guangxi Director Male 43 r 26, 0 0 0 0 0 NA
nt 30, 2019
ong 2022
51
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Decembe
Incumbe January
Shen Ke Director Male 51 r 26, 0 0 0 0 0 NA
nt 30, 2019
2022
Independ Novemb Decembe
Shi Incumbe
ent Male 47 er 14, r 26, 0 0 0 0 0 NA
Shuiping nt
Director 2016 2022
Independ Decembe Decembe
Zhang Incumbe
ent Male 44 r 26, r 26, 0 0 0 0 0 NA
Yu nt
Director 2019 2022
Independ Decembe Decembe
Li Incumbe
ent Male 45 r 26, r 26, 0 0 0 0 0 NA
Ruidong nt
Director 2019 2022
Chairma
n of the
Jiao Novemb Decembe
Supervis Incumbe
Wanjian Male 41 er 14, r 26, 308,692 0 0 0 308,692 NA
ory nt
g 2016 2022
Committ
ee
Decembe Decembe
Supervis Incumbe
Liu Kan Male 38 r 26, r 26, 0 0 0 0 0 NA
or nt
2019 2022
Employe
Novemb Decembe
Lin e Incumbe
Female 37 er 14, r 26, 0 0 0 0 0 NA
Meiling Supervis nt
2016 2022
or
Vice
President
Novemb Decembe
Lu and Incumbe
Male 44 er 08, r 26, 486,762 0 0 0 486,762 NA
Anfeng Chief nt
2013 2022
Financial
Officer
Vice
President Decembe Decembe
Jin Incumbe
and Male 39 r 26, r 26, 0 0 0 0 0 NA
Taotao nt
Board 2019 2022
Secretary
Chen Off- January August
Director Male 50 0 0 0 0 0 NA
Peiliang office 30, 2019 02, 2021
2,450,05 2,450,05
Total -- -- -- -- -- -- 0 0 0 --
4 4
Whether there has been any off-office of any director or supervisor or removal of any senior management members in their tenures
during the reporting period
√ Yes □ No
During the reporting period, Mr. Chen Peiliang, Director of the Company, resigned from his position as Director and Vice
President and from his position in the special committees of the Board of Directors of the Company due to personal reasons. In
accordance with the Company Law of the People's Republic of China, the Self-regulatory Guidelines for the Companies Listed on
the Shenzhen Stock Exchange No. 1 - Standardized Operation of the Companies Listed on the Main Board and other laws and
regulations and the Articles of Association of the Company, Mr. Chen Peiliang's resignation application shall become effective from
the date on which it is delivered to the Board. Mr. Chen Peiliang did not directly hold any shares of the Company and has no
outstanding commitments that should be performed but have not been performed. The resignation of Mr. Chen Peiliang will not
adversely affect the production and operation of the Company.
Changes of company’s directors, supervisors and senior management members
√ Applicable □ Not Applicable
Name Position held Type Date Reason
52
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Chen Peiliang Director Off-office August 02, 2021 Personal reasons
2. Position and biographical information
Professional backgrounds, major work experience and current posts in the Company of the incumbent directors, supervisors and
senior management members:
1. Mr. Ma Gang, born in 1979, holds a master's degree, is Chairman of the eighth and ninth Board of Directors of Infore Enviro.
Starting from December 2014 till now, he has been serving as President of the Company. He joined Midea Group in June 2001, and
successively held the positions of R&D Engineer, branch salesman and Regional Director at Midea Rice Cooker Division, General
Manager at Midea Small Domestic Appliance Sales Company in China, President of China Marketing Headquarter of Midea Daily
Home Electric Appliance Group, Vice President and Domestic Sales General Manager at Midea Small Domestic Appliance Division,
Vice President of Midea Small Domestic Appliance Division and General Manager at Midea Water Material Product Company, and
Deputy Director at Midea Domestic Market Department.
2. Mr. Su Bin, born in 1978, holds a Master's degree. From October 2020 till now, he has been Vice President of Infore Group
Co., Ltd. From March 2013 to October 2020, he successively held the positions of Executive President and President of Fosun
Group's Energy and Environment Group, as well as the Executive President and Vice President of Fosun Capital, etc. He was a
Partner of Mingli China Growth Fund from January 2009 to February 2013 and an Executive Director of Hongshang Industrial
Holding Group Co., Ltd. from March 2003 to December 2008.
3. Mr. Kuang Guangxiong, born in 1979, holds a Master's degree, is PRC Certified Public Accountant and International
Accountant, in addition to Director of the eighth and ninth Board of Directors of Infore Enviro He has been Vice President of Infore
Group since October 2018. From July 2002 to October 2018, he successively held the positions of Financial Manager at Midea Daily
Home Electric Appliance Group, Financial Manager at Midea subsidiary in the US, the Financial Director at Midea Kitchen
Appliances Division, Financial Director at Midea Commercial Air Conditioner Division, and Financial Director at Midea-KUKA
Joint Venture in China.
4. Mr. Shen Ke, born in 1971, has a Master's degree, is Director of the eighth and ninth Board of Directors of Infore Enviro.
Since January 2019, he has served as Investment Director at Zoomlion Heavy Industry Science and Technology Co., Ltd. from July
2003 to January 2019, he successively held the positions of Deputy Manager and Head of Investment Development Department,
Deputy Department Director of Investment & Financing Management Department, and Board Secretary of Zoomlion Heavy Industry
Science and Technology Co., Ltd.
5. Mr. Zhang Yu, born in 1978, has a Doctoral degree. He serves as Associate Professor at China Europe International Business
School from 2015, and held the position of Assistant Professor at University of California, Irvine from 2008 to 2015.
6. Mr. Li Ruidong, born in 1977, has a Bachelor's degree. He has been President and Editor-in-chief at the China Environment
Magazine since November 2013. He served as Assistant to General Manager of Environmental Protection Magazine Co., Ltd. from
February 2012 to November 2013, and Director of the Office of Environmental Protection from March 2008 to January 2012.
7. Mr. Shi Shuiping, born in 1975, has a Doctoral degree and is Certified Anti-Fraud Professional and Independent Director of
the eighth and ninth Board of Directors of Infore Enviro. Since October 2010 till now, he has been the Professor and Supervis or to
Undergraduate Students at the School of Management, Jinan University. He is also a Visiting Scholar at Boston University and City
University of Hong Kong, Senior Member of Accounting Society of China, Senior Member of China Audit Society, Director at
Guangdong Audit Society, Executive Director at Guangzhou Audit Society, and Expert Member of Guangdong Enterprise Institute
for Internal Controls.
8. Mr. Lu Anfeng, born in 1978, holds a Master's degree, is PRC Certified Public Accountant and Certified Tax Agent. Since
September 2012 till now, he has served as Vice President and Chief Financial Officer of the Company. He held the positions of
Senior Financial Manager at Guangzhou PCI Group Co., Ltd., Audit Manager at Guangzhou Mayland Group, and Certified Public
53
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Accountant at Guangzhou Branch of Shenzhen Dahua Tiancheng Accounting Firm, etc.
9. Mr. JinTaotao, born in 1983, has a Master's degree. He is Vice President and Board Secretary of the Company. He held the
positions of Engineer at the Environmental Planning Institute of the former Ministry of Environmental Protection fro m September
2005 to April 2016, Vice President at Infore Environment Technology Group Co., Ltd. from May 2016 to June 2019, and Board
Secretary at Stariver Environmental Technology Co., Ltd. from July 2019 to November 2019. Mr. Jin Tao joined the qualification
training of Shenzhen Stock Exchange for Board Secretaries in November 2019 and obtained the qualification certificate for Boa rd
Secretary.
10. Mr. Jiao Wanjiang, born in 1981, holds a Master's degree. He is currently the General Manager of the Busines s Department
of Infore Environment Technology Group Co., Ltd. He successively served as Head of the Operation Management Department and
General Manager of the Solid Waste Treatment Department of Infore Environment Technology Group Co., Ltd. He joined Midea in
July 2005. He successively held the positions of Domestic Sales Branch Manager of Guangdong Midea Small Domestic Appliance
Sales Company in China, Senior Product Planning Manager at Headquarter and Head of Brand & Marketing Department of
Headquarter.
11. Mr. Liu Kan, born in 1984, has a Bachelor's degree. He has worked in the Company since February 2016, and is currently
Director of the Operation Management Department of Zoomlion Urban Environmental Service Co., Ltd. He served as General
Manager at Infore Network Technology Co., Ltd. from 2017 to November 2019, Director of the Operation Management Department
of Universtar Science & Technology (Shenzhen) Co., Ltd. from 2016 to 2017, and Rice Cooker Product Planning Manager at Midea
Small Domestic Appliance Shenzhen Branch and Midea Small Domestic Appliance Division from 2006 to 2015.
12. Ms. Lin Meiling, born in 1985, has a Bachelor's degree. She is currently Director of Human Resources at Infore
Environment Technology Group Co., Ltd. From 2010 to now, she is responsible for the administration and human resources affairs
of the Company.
Positions held in shareholder entities:
√ Applicable □ Not Applicable
Whether obtains
Name of the
remuneration or
personnel Position held at the
Shareholder entity Start of tenure End of tenure allowance from
holding shareholder entity
the shareholder
position
entity
Ma Gang Infore Group Co., Ltd. Director March 6, 2018 -- No
Su Bin Infore Group Co., Ltd. Director and Co-President November 13, 2020 -- Yes
Kuang
Infore Group Co., Ltd. Director and Co-President October 1, 2018 -- Yes
Guangxiong
Zoomlion Heavy Industry
Shen Ke Science and Technology Investment Director July 1, 2003 -- Yes
Co., Ltd.
Statements on Mr. Ma Gang is a Director of Infore Group Co., Ltd.;
positions held Mr. Su Bin is a Director and Co-President of Infore Group Co., Ltd.;
in shareholder Mr. Kuang Guangxiong is a Director and Co-President of Infore Group Co., Ltd.;
entities Mr. Shen Ke is an Investment Director at Zoomlion Heavy Industry Sc ience and Technology Co., Ltd.
Positions held in other entities:
√ Applicable □ Not Applicable
Whether obtains
Name of the remuneration or
Position held in End of
personnel Name of other entity Start of tenure allowance from
other entity tenure
holding position the shareholder
entity
Bichamp Cutting Technology (Hunan)
Shen Ke Director July 5, 2014 --- No
Co., Ltd.
54
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
China Europe International Business
Zhang Yu Associate Professor July 1, 2015 -- Yes
School
President and
Li Ruidong China Environment Magazine November 1, 2013 -- Yes
Editor-in-chief
Professor and
Graduate Students’
Shi Shuiping Jinan University Supervisor at the January 1, 2010 -- Yes
School of
Management
Mr. Shen Ke is a Director of Bichamp Cutting Technology (Hunan) Co., Ltd.
Statements on Mr. Zhang Yu is an Associate Professor at China Europe International Business School;
positions held Mr. Li Ruidong is the President and Editor-in-chief of the China Environment Magazine;
in other entities Mr. Shi Shuiping is a Professor and Supervisor to Undergraduate Students at the School of Management of Jinan
University.
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management members as well as those who left during the reporting period:
□ Applicable √ Not Applicable
3. Remuneration of directors, supervisors and senior management Members
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management members
The remuneration of the directors, supervisors and senior management members of the Company for year 2021 are strictly in
compliance with the Remuneration Plan for Directors, Supervisors and Senior Management Members in 2021 deliberated a nd
adopted by the Company, the Rules of Procedures for the Board of Directors formulated by the Company, the Rules of Procedures
for the Supervisory Committee and the Articles of Association of the Company, as well as the relevant provisions of the Compa ny
Law. The remuneration of the Company's directors, supervisors and senior management members shall be determined on the basis of
reasonable remuneration in the market and the Company's performance appraisal results. The remuneration of the directors of the
Company is actually paid on a yearly basis. The remuneration of senior management members is actually paid partly on a monthly
basis, and the part linked to the Company's performance appraisal is paid at the end of the year.
Remuneration of directors, supervisors and senior management members of the Company during the reporting period
Unit: RMB 10,000
Whether this
Total pre-tax person receives
remuneration remuneration
Name Position Gender Age Incumbent/Former
from the from the
Company Company's
associates
Chairman of the
Ma Gang board and Male 43 Incumbent 188.22 No
president
Su Bin Director Male 44 Incumbent 0 Yes
Kuang Yes
Director Male 43 Incumbent 0
Guangxiong
Shen Ke Director Male 51 Incumbent 0 Yes
Independent
Shi Shuiping Male 47 Incumbent 10 No
Director
Independent
Zhang Yu Male 44 Incumbent 10 No
Director
Independent
Li Ruidong Male 45 Incumbent 10 No
Director
55
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Chairman of the
Jiao Wanjiang Supervisory Male 41 Incumbent 80.37 No
Committee
Liu Kan Supervisor Male 38 Incumbent 63.76 No
Employee
Lin Meiling Female 37 Incumbent 14.02 No
Supervisor
Vice President
Lu Anfeng and Chief Male 44 Incumbent 99.75 No
Financial Officer
Vice President
Jin Taotao and Board Male 39 Incumbent 95.78 No
Secretary
Chen Peiliang Director Male 50 Off-office 359.92 No
Total -- -- -- -- 931.82 --
VI. Performance of Duties by Directors during the Reporting Period
1. Information on the board of directors during the reporting period
Meeting Date of the meeting Disclosure date Meeting resolution
The Announcement on the Resolutions of the 11th Extraordinary
The 11th Meeting of the Ninth Board of Directors (Announcement No.:
extraordinary 2021-004) was published on the Securities Daily, the Securities
January 29, 2021 January 30, 2021
meeting of the ninth Times, the China Securities Journal, the Shanghai Securities
Board of Directors News and Cninfo (www.cninfo.com.cn), which are media
designated by the Company for information disclosure
The Announcement on the Resolutions of the 12th Extraordinary
The 12th Meeting of the Ninth Board of Directors (Announcement No.:
extraordinary 2021-017) was published on the Securities Daily, the Securities
April 08, 2021 April 09, 2021
meeting of the ninth Times, the China Securities Journal, the Shanghai Securities
Board of Directors News and Cninfo (www.cninfo.com.cn), which are media
designated by the Company for information disclosure
The Announcement on the Resolutions of the 13th Meeting of
the Ninth Board of Directors (Announcement No.: 2021-023)
The 13th meeting of
was published on the Securities Daily, the Securities Times, the
the ninth Board of April 22, 2021 April 23, 2021
China Securities Journal, the Shanghai Securities News and
Directors
Cninfo (www.cninfo.com.cn), which are media designated by
the Company for information disclosure
The Announcement on the Resolutions of the 14th Meeting of
the Ninth Board of Directors (Announcement No.: 2021-064)
The 14th meeting of
was published on the Securities Daily, the Securities Times, the
the ninth Board of August 19, 2021 August 21, 2021
China Securities Journal, the Shanghai Securities News and
Directors
Cninfo (www.cninfo.com.cn), which are media designated by
the Company for information disclosure
The Announcement on the Resolutions of the 15th Meeting of
the Ninth Board of Directors (Announcement No.: 2021-079)
The 15th meeting of
was published on the Securities Daily, the Securities Times, the
the ninth Board of October 22, 2021 October 23, 2021
China Securities Journal, the Shanghai Securities News and
Directors
Cninfo (www.cninfo.com.cn), which are media designated by
the Company for information disclosure
56
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
2. Attendance of directors at board meetings and general meetings of shareholders
Attendance of directors at board meetings and general meetings of shareholders
Total number Number of
Number of
of board Number of board meetings Number of Whether the
Number of general
meetings the board meetings the director board meetings director failed
board meetings meetings of
Director's name director shall the director attended by the director to attend two
the director shareholders
attend during attended on way of attended consecutive
failed to attend attended by the
the reporting site telecommunica through proxy board meetings
director
period tion
Ma Gang 5 5 0 0 0 No 3
Su Bin 1 1 0 0 0 No 0
Kuang
5 5 0 0 0 No 3
Guangxiong
Shen Ke 5 4 1 0 0 No 3
Zhang Yu 5 4 1 0 0 No 3
Li Ruidong 5 4 1 0 0 No 3
Shi Shuiping 5 4 1 0 0 No 3
Chen Peiliang 3 2 1 0 0 No 2
Explanation of why any director failed to attend two consecutive board meetings
3. Objections raised by directors on relevant matters of the company
Indicate whether any director raised any objections on any relevant matter of the Company
□ Yes √ No
Directors did not raise any objection to the relevant matters of the Company during the reporting period.
4. Other information about the performance of duties by directors
Indicate whether any recommendation from directors were adopted by the Company.
√ Yes □ No
Explanation on adoption/rejection of recommendation of any director of the Company
During the reporting period, the directors of the Company acted in a diligent and responsible manner, and actively attended
board meetings and shareholders' general meetings in strict compliance with provisions and requirements in the Articles of
Association of the Company, the Rules of Procedures for the Board of Directors of the Company and relevant laws and regulations.
Based on the actual situation of the Company, the directors proposed relevant opinions on the Company's significant governanc e and
operation decisions, reached consensus through adequate communication and discussion, firmly supervised and promoted the
execution of resolutions of the board of directors, ensured the decision-making was scientific, timely and highly efficient and
protected the legitimate rights and interests of the Company and all shareholders.
VII. Information on Specialized Committees under the Board during the Reporting Period
Specific
Other
Number Important information
information
Name of the of Date of the opinions and on matters
Members Meeting contents on
committee meetings meeting suggestions that
performance
held proposed objections
of duties
were raised
57
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(if any)
1. Proposal on Related-party
Transactions concerning the
Provision of Temporary
Lending Funds by Infore
Holding Group Co., Ltd. to the
Company for the Year 2021; 2. Agreed to
Proposal on the Provision of pass the
January 28, Guarantee by the Company for relevant Not
--
2021 applicable
Joint-Stock Companies; 3. proposals of
Report on the Self-assessment this meeting.
of Internal Control in 2020; 4.
Report on the Planning for
Internal Audit in 2021; and 5.
Pre-communication on the 2021
Annual Report.
1. 2020 Annual Report and the
summary thereof; 2. 2020
Annual Financial Accounts
Report; 3. The main text and
full text of the 2021 First
Quarter Report; 4. Profit
Distribution P lan or 2020; 5.
Proposal regarding the
Fulfillment of Performance
Commitments for 2018- 2020
by Changsha Zoomlion Heavy
Industry Science & Technology
Shi Shuiping,
Audit Environmental Industry Co.,
Li Ruidong and 4
Committee Ltd.; 6. Internal Control Work
Chen Peiliang
Report for the First Quarter of
2021; 7. Special Report on
Annual Use of Funds Raised in
2020; 8. Annual Special Report
on Matters relating to the Agreed to
Provision of Guarantee; 9. pass the
April 21, Proposal on Guarantee Quotas relevant Not
--
2021 applicable
Provided to Subsidiaries; 10. proposals of
Proposal on Providing Buyer's this meeting.
Credit Guarantee for Clients;
11. Annual Special Report on
Related-party Transaction
Matters; 12. Proposal on
Expected Routine Related-party
Transactions in 2021; 13.
Proposal on Renewal of
Engagement of the Accounting
Firm; 14. Proposal on the
Change of Accounting Policies
of the Company and its
Subsidiaries; 15. Proposal for
the Annual P lanning on the
Entrusted Wealth Management
with Self-owned Funds for
2021; 16. Proposal on Carrying
out the Instrument Pool
Business.
58
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
1. 2021 Semi-annual Report and
the summary thereof; 2. 2021
Semi-annual Financial Report;
3. Internal Control Work Report
for the Second Quarter of 2021;
4. 2021 Semi-annual Special
Report on the Annual Use of Agreed to
Raised Funds; 5. Semi-annual pass the
August 18, Special Report on Providing relevant Not
--
2021 applicable
Guarantee; 6. Semi-annual proposals of
Special Report on Related-party this meeting.
Transactions; and 7. Proposal on
Financing Factoring and
Related-party Transactions
Conducted by Wholly-owned
Subsidiaries and Joint-stock
Subsidiaries.
1. Third Quarter Report in 2021;
2. Internal Control Work Report
in the Third Quarter of 2021; 3.
Agreed to
The Special Report on the Use
pass the
October 21, of Raised Funds in the Third relevant Not
--
2021 Quarter of 2021; and 4. applicable
proposals of
Proposal on the Use of Part of
this meeting.
the Idle Raised Funds to
Temporarily Supplement
Working Capital.
Proposal on Transferring the Agreed to
51% of the Company’s pass the
January 28, Controlling Right of the relevant Not
--
2021 applicable
Subsidiary through Public proposals of
Ma Gang, Shen Listing this meeting.
Strategy
Ke and Kuang 2
Committee Agreed to
Guangxiong 1. Proposal on the Termination
pass the
April 07, of Company Share Repurchase; Not
relevant --
2022 2. Proposal on the Company applicable
proposals of
Share Repurchase Plan.
this meeting.
1. Proposal regarding the
Remuneration Packages for
Directors, Supervisors and
Senior Management Members
for 2021; 2. Proposal regarding
the Cancellation of Partial Stock
Options Expired but Not
Exercised under Phase II Stock Agreed to
Li Ruidong, Option Incentive Plan; 3. pass the
Remuneration
Kuang April 21, relevant Not
& Appraisal 2 Proposal for the Adjustment of --
Guangxiong 2021 applicable
Committee the Eligible Participants and the proposals of
and Zhang Yu
Number of Options to Be this meeting.
Exercised under the Phase II
and Phase III Stock Option
Incentive Plans and
Cancellation of Partial Stock
Options; 4. Proposal for Matters
relating to Option Exercise in
the Third Exercise Schedule
59
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
under the Phase II Stock Option
Incentive Plan of the Company;
5. Proposal for Matters Relating
to Option Exercise in the
Second Exercise Schedule
under Phase III Stock Option
Incentive Plan of the Company.
Agreed to
Proposal for Adjustment of the
pass the
August 18, Option Exercise Prices of Phase Not
relevant --
2021 II and Phase III Stock Option applicable
proposals of
Incentive Plans
this meeting.
Agreed to
Proposal for the By-election of
pass the
August 18, Mr. Su Bin as a Non- Not
relevant --
2021 independent Director of the 9th applicable
proposals of
Board of Directors
Nomination Zhang Yu, Ma this meeting.
2
Committee Gang Agreed to
Proposal for the By-election of
pass the
October 21, Members of the Special relevant Not
--
2021 Committees of the 9th Board of applicable
proposals of
Directors
this meeting.
VIII. Work of the Supervisory Committee
Indicate whether the supervisory committee found any risk to the Company during its supervision in the reporting period.
□ Yes √ No
The supervisory committee has no objection to the supervisory matters during the reporting period.
IX. Information on Employees of the Company
1. Number, specialty and educational backgrounds of employees
Number of in-service employees of the parent company at the
228
end of the reporting period
Number of in-service employees of the major subsidiaries at the
13,135
end of the reporting period
Total number of in-service employees at the end of the reporting
13,363
period
Total number of paid employees in the reporting period 13,363
Number of retirees to whom the parent company or its major
0
subsidiaries need to pay retirement pensions
Specialty
Specialty category Number of people in the specialty
Production personnel 8,871
Sales personnel 1,453
Technical personnel 1,582
Finance personnel 222
Administrative personnel 1,235
Total 13,363
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Educational level
Types of educational level Number of people
Doctoral degree 9
Master's degree 483
Bachelor‘s degree 2,787
College 2,167
Below college 7,917
Total 13,363
2. Remuneration policy
The Company adopts a fair remuneration system featured by positive incentives. It follows the performance -oriented principle
and promotes competent personnel. The remuneration of employees is paid on time according to the remuneration policy of the
Company. The fixed remuneration of employees is determined by the Company according to the position value and individual
performance, and the floating salary of employees is determined according to the Company and individual performance. The
Company swings the weight of salary payment towards technical professionals to ensure that the income level of core talent is
competitive in the market. The employee remuneration policy will be dynamically adjusted according to regional conditions, talent
supply, staff turnover, extent of changes in the industry environment and the corporate payment capacity.
3. Training plan
In adherence to the core value of "our employees are our business partners", the Company is committed to building a team of
highly skilled personnel. It has established a multi-level talent training system ("Fenglin Program -Yingfeng Training Camp -Tanfeng
Training Camp") and a multi-category professional and general training system covering employees from fresh graduates to senior
executives, so that employees can continuously improve their comprehensive abilities through training. In order to create a good
concentrated learning atmosphere in the whole company, in 2021, the Company set up a cross-unit and cross-department Infore
Enviro Talent Training Center – "Infore Enviro Staff Ability Charging Station", and established a professional internal lecturer team
through effective selection, training and motivation to share internal excellent experience and methodology. According to the actual
needs of employees at different levels and functional departments, the Company organized multiple online or offline training sessions,
insisted on the concept of parallel progress of talent development and enterprise development, improved the multi-level talent
training system, cultivated "Infore Enviro Staff" in one continuous line, and contributed to the Company's high-quality development.
4. Labor outsourcing
√ Applicable □ Not Applicable
Total hours of labor outsourced 45,405,082.6
Total payment for labor outsourcing (RMB) 446,329,864.19
X. Company's Profit Distribution and Converting Capital Reserve into Share Capital
Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy in the reporting period
√ Applicable □ Not Applicable
According to the Articles of Association, while satisfying the conditions of cash dividend and ensuring the Company's normal
operation and long-term development, the Company shall in principle pay cash dividend on an annual basis. The Board of Directors
may propose interim cash dividends depending on the Company's profit status, cash flow status, development stage and capital
61
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
requirements. The Company shall maintain continuity and stability of the profit distribution policy. When the conditions for cash
dividends are met, the cumulative profit distributed in cash in the recent three years shall not be less than 30% of the aver age annual
attributable profit realized in the recent three years.
During the reporting period, the Company distributed profit in strict accordance with the provisions of the Articles of
Association and fully protected the legitimate rights and interests of small and medium investors. Independent Directors have voiced
their opinions on the annual profit distribution plan of the Company.
Special remarks on the cash dividend policy
Whether it is in compliance with the Company’s Articles of Association or resolutions
Yes
of the general meetings of shareholders:
Whether dividend standards and ratio are made clear: Yes
Whether the decision-making procedure and mechanism are complete: Yes
Whether Independent Directors faithfully performed their duties and played their role
Yes
with due diligence:
Whether medium and small shareholders can fully express their opinions and desire
Yes
and whether their legal rights and interests are fully protected:
In case of adjusting or changing the cash dividend policy, whether the conditions and
Yes
procedures involved are in compliance with applicable regulations and transparent:
The Company made profits in the reporting period and the parent company's profits attributable to shareholders was positive, but a
preliminary plan for cash dividend distribution was not put forward
□ Applicable √ Not Applicable
2. Profit distribution and converting capital surplus into share capital for the reporting period
√ Applicable □ Not Applicable
Bonus shares per 10 shares (share) 0
Dividend per 10 shares (RMB) (tax inclusive) 1.00
Total shares as the basis for the preliminary plan for
3,179,499,754.00
profit distribution (share)
Cash dividends (RMB) (tax inclusive) 317,949,975.40
Cash dividends in other forms (such as share
455,303,777.91
repurchase) (RMB)
Total cash dividends (inclusive of those in other forms)
773,253,753.31
(RMB)
Attributable profit (RMB) 706,488,302.65
Percentage of total cash dividends (inclusive of those in
100%
other forms) in the total distributed profit (%)
Information on this cash dividend
Others
Details about the preliminary plan for profit distribution and converting capital reserve into share capital
The profit distribution plan for 2021 is as follows: based on the total share capital (minus company shares in the Company's
repurchase account) on the date of record for the 2021 profit distribution plan, a cash dividend of RMB 1.00 (tax inclusive) per 10
shares will be distributed to the shareholders, with no bonus issue from either profit or capital reserves.
The attributable profit was 502,505,012.72 at the end of 2020, and the balance of retained earnings after the distribution of
cash dividend was RMB 130,011,840.20. For 2021, net profit realized was RMB 640,529,402.45, and RMB 64,052,940.00 was set
aside as surplus reserves. The attributable profit was RMB 706,488,302.65 at the end of 2021. If, at the time of the implementation
of the 2021 profit distribution plan, there is no share repurchase before the implementation of the 2021 equity distribution plan, the
total share capital for the 2021 profit distribution plan at the date of equity registration would be the existing share capital of
3,179,499,754 shares. And according to the 2021 profit distribution plan, a cash dividend of RMB1.00 (tax inclusive) per 10 shares
would be distributed to the shareholders. The total cash dividend payout would amount to RMB 317,949,975.40, and the balance of
retained earnings after distribution would be RMB 388,538,327.25. Where any share repurchase occurs before the implementation
of the 2021 equity distribution plan, the repurchased shares will be excluded from the total share capital for actual cash dividend,
and the total cash dividend payout will be reduced accordingly.
62
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
XI. Company's Imple mentation of Stock Incentive Plan and Employee Stock Ownership Plan
or Other Employee Incentive Measures
√ Applicable □ Not Applicable
1. Stock incentive
Overview of Phase II Stock Option Incentive Plan:
1. On March 11, 2021, the second exercise schedule of the Company's Phase II Stock Option Incentive P lan ended, a total of
18,200 stock options had been partially exercised by 46 incentive subjects, leaving 3,476,800 stock options unexercised. The
Company would cancel the 3,476,800 stock options that were granted and were not exercised during the second exercise schedule of
the Phase II Stock Option Incentive Plan, in accordance with the applicable laws and regulations.
2. On April 22, 2021, the 13th meeting of the ninth Board of Directors and the 12th meeting of the ninth Supervisory Committee
held by the Company deliberated and approved the Proposal Regarding the Cancellation of Partial Stock Options Expired but Not
Exercised under Phase II Stock Option Incentive Plan; Proposal for the Adjustment of the Eligible Participants and the Number of
Options to Be Exercised under the Phase II and Phase III Stock Option Incentive Plans and Cancellation of Partial Stock Optio ns;
Proposal for Matters relating to Option Exercise in the Third Exercise Schedule under the Phase II Stock Option Incentive Plan of the
Company.
(1) In accordance with the Phase II Stock Option Incentive Plan (Draft), considering the fact that when the second exercise
schedule of the Company's Phase II Stock Option Incentive Plan ended, a total of 18,200 stock options had been partially exercised
by 46 incentive subjects, leaving 3,476,800 stock options unexercised, the Board of Directors of the Company approved the
cancellation of the 3,476,800 stock options that were granted but were not exercised during the second exercise schedule of the Phase
II Stock Option Incentive Plan, in accordance with the relevant regulations.
(2) The Company’s six incentive subjects resigned due to personal reasons or became supervisors due to position change, and
they were identified by the Company’s Board of Directors as no longer suitable for incentives. According to the provisions of the
Phase II Stock Option Incentive Plan (Draft), their 560,000 stock options in total were canceled for the third exercise schedule. After
the adjustments, the incentive subjects of the phase II Stock Option Incentive Plan were adjusted from the original 46 to 40, and the
number of stock options granted was adjusted from 4.66 million to 4.10 million.
(3) The exercise conditions for the third exercise schedule under the Phase II Share Option Incentive Plan have been met, and
the total number of options available for exercise is 4,100,000, which are exercised by individual exercise at the price of RMB 9.15
per share. Prior to the exercise of stock option, if the Company has dividend distribution, capital reserve transferred to share capital,
distribution of share bonus, share split, share reduction or increase issue in stocks, etc., the exercise price of stock options will be
adjusted accordingly.
3. On August 19, 2021, the 14th meeting of the ninth Board of Directors and the 13th meeting of the ninth Supervisory
Committee held by the Company deliberated and approved the Proposal for Adjustment of the Option Exercise Prices of Phase II and
Phase III Stock Option Incentive Plans. In view of the fact that the Company's 2020 annual equity distribution was completed on July
8, 2021, according to relevant provisions on the adjustment of the stock option exercise price of the Phase II Stock Option Incentive
Plan (Draft), if the Company has capital reserve transferred to share capital, distribution of share bonus, share split, shar e reduction,
dividend distribution or share allotments, etc. within the validity period of the stock options, the exercise price of stock options will
be adjusted accordingly. After the implementation of this equity distribution, the exercise price of the Phase II Stock Optio n
Incentive Plan will be adjusted from RMB 9.15 per share to RMB 9.03 per share.
4. As of December 31, 2021, as the market price is lower than the exercise price, the options under the Phase II Share Option
Incentive Plan of the Company remain unexercised in the third exercise schedule.
63
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
For more information, please refer to announcements published on April 23, 2021 and August 21, 2021 on the media of
information disclosure specified by the Company and Cninfo (http://www.cninfo.com.cn).
Overview of Phase III Stock Option Incentive Plan:
1. On April 22, 2021, the 13th meeting of the ninth board of directors and the 12th meeting of the ninth Supervisory Committe e
held by the Company deliberated and approved the Proposal for the Adjustment of the Eligible Participants and the Number of
Options to Be Exercised under the Phase II and Phase III Stock Option Incentive Plans and Cancellation of Partial Stock Options an d
the Proposal for Matters Relating to Option Exercise in the Second Exercise Period under Phase III Stock Option Incentive Pla n of
the Company.
(1) Company’s 13 incentive subjects resigned due to personal reasons, and they were identified by the Company’s board of
directors as no longer suitable for incentives. According to the provisions of the Phase III Stock Option Incentive Plan (Draft), their
3,101,000 stock options in total were canceled for the second and third exercise schedules. After the adjustments, the incent ive
subjects of the Phase III Stock Option Incentive Plan were adjusted from the original 244 to 231, and the number of locked stock
options granted was adjusted from 44,667,000 to 41,566,000.
(2) The exercise conditions for the second exercise schedule under the Phase III Share Option Incentive Plan have been met, a nd
the total number of options available for exercise is 17,814,000, which are exercised by individual exercise at the price of RMB 6.34
per share. Prior to the exercise of stock option, if the Company has dividend distribution, capital reserve transferred to share capital,
distribution of share bonus, share split, share reduction or increase issue in stocks, etc., the exercise price of stock options will be
adjusted accordingly.
2. On August 19, 2021, the 14th meeting of the ninth Board of Directors and the 13th meeting of the ninth Supervisory
Committee held by the Company deliberated and approved the Proposal for Adjustment of the Option Exercise Prices of Phase II and
Phase III Stock Option Incentive Plans. In view of the fact that the Company's 2020 annual equity distribution was completed on July
8, 2021, according to relevant provisions on the adjustment of the stock option exercise price of the Phase III Stock Option Incentive
Plan (Draft), if the Company has capital reserve transferred to share capital, distribution of share bonus, share split, shar e reduction,
dividend distribution or share allotments, etc. within the validity period of the stock options, the exercise price of stock options will
be adjusted accordingly. After the implementation of this equity distribution, the exercise price of the Phas e III Stock Option
Incentive Plan will be adjusted from RMB 6.34 per share to RMB 6.22 per share.
3. As of December 31, 2021, the second exercise schedule of the Phase III stock options is still not expired, and the number of
exercised stock options is 16,384,380 shares.
For more information, please refer to announcements published on April 23, 2021 and August 21, 2021 on the media of
information disclosure specified by the Company and Cninfo (http://www.cninfo.com.cn).
Equity incentives granted to directors and senior management members of the Company:
□ Applicable √ Not Applicable
Appraisal mechanism and incentives for senior management members
The Company has established a sound performance assessment and incentive system. The Board of Directors of the Company
established the Nomination Committee and the Remuneration & Appraisal Committee as the administrative institutions for the
appointment and remuneration appraisal of the senior management members of the Company, which shall be responsible for
formulating remuneration standards and schemes for the senior management members, reviewing their performance of duties and
formulating scientific and reasonable remuneration scheme and submitting to the board for review and discussion. The senior
management members currently serving in the Company shall be subject to comprehensive performance appraisal based on their
positions, the current remuneration system of the Company, the Company's actual operating performance, individual performance ,
performance of duties and achievement of responsibilities and goals, and the result of such appraisal shall serve as the basis to
determine their remunerations. The Company pays the remunerations of senior management members based on schedule. During the
reporting period, the senior management members of the Company conscientiously performed their duties in strict accordance with
64
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
the Company Law, the Articles of Association and the relevant laws and regulations, actively implemented relevant resolutions of the
shareholders' meetings and Board meetings, and completed various tasks of the year in a quite good way.
2. Implementation of the employee stock ownership plan
√ Applicable □ Not Applicable
Information on all effective employee stock ownership plans during the reporting period
Proportion to
Total shares the total share Source of funds
Number of
Scope of employees held by Changes capital of the to implement
employees
employees listed the plan
company
Directors (excluding
Independent Employees’
As of December 31, 2021, 35,671,310 company
Directors), legitimate
shares were sold cumulatively through
supervisors, middle remuneration,
centralized price competitions by the Phase I
and senior level self-raised
Employee Stock Ownership Plan of the
management 36,211,560 funds and other
136 Company, accounting for 1.12% of the total 1.14%
personnel, key elite shares funds obtained
share capital of the Company. After the sale the
personnel through
Phase I Employee Stock Ownership Plan holds
(technology, legitimate and
540,250 company shares, accounting for 0.02%
marketing, compliant
of the total share capital of the Company.
production, etc.) of means.
the Company.
Shareholding of directors, supervisors and senior management members in the employee stock ownership plan during the reporting
period
Number of shares held at Number of shares held at Proportion to the total
Name Position the beginning of the the end of the reporting share capital of the listed
reporting period period company
Chairman of the Board
Ma Gang 8,632,835 128,795 0.00%
and President
Director and Vice
Chen Peiliang 793,033 11,831 0.00%
President
Vice President and Chief
Lu Anfeng 2,708,624 40,410 0.00%
Financial Officer
Vice President and
Jin Taotao Secretary of the Board of 409,190 6,104 0.00%
Directors
Chairman of the
Jiao Wanjiang 1,267,404 18,908 0.00%
Supervisory Committee
Changes in the asset management institution during the reporting period
□ Applicable √ Not Applicable
Changes in equity arising from disposal of shares by holders during the reporting period
□ Applicable √ Not Applicable
Exercise of shareholders' rights during the reporting period
NA
Other relevant circumstances and explanations of the employee stock ownership plan during the reporting period
√ Applicable □ Not Applicable
1. The Company disclosed the Indicative Announcement on the Expiration of the Lock-up Period of the Phase I Employee Stock
Ownership Plan on May 12, 2021, and the lock-up period of the Company's Phase I Employee Stock Ownership Plan is 12 months
65
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
from the time when the registration of last underlying stock is under the name of Phase I Employee Stock Ownership P lan was
announced by the Company (i.e., from May 13, 2020 to May 12, 2021). In accordance with the relevant prov isions of the Phase I
Employee Stock Ownership Plan (Draft) of the Company, upon expiry of the lock-up period of the employee stock ownership plan,
the asset management institution will sell the underlying shares at the right time according to the specific market conditions.
2. As of December 31, 2021, 35,671,310 shares were sold cumulatively through centralized price competitions by the Phase I
Employee Stock Ownership Plan of the Company, accounting for 1.12% of the total share capital of the Company. After the sale, the
Phase I Employee Stock Ownership P lan holds 540,250 company shares, accounting for 0.02% of the total share capital of the
Company.
Change of the members of the employee stock ownership plan management committee
□ Applicable √ Not Applica ble
The financial impact of the employee stock ownership plan on the listed company in the reporting period and relevant accounting
treatment
□ Applicable √ Not Applicable
Termination of the employee stock ownership plan in the reporting period
□ Applicable √ Not Applicable
Other statements
NA
3. Other employee incentive measures
□ Applicable √ Not Applicable
XII. Establishment and Imple mentation of the Internal Control System in the Reporting
Period
1. Establishment and implementation of internal control
I. Basic Information of the Establishment of Internal Control
Infore Enviro has established and improved various rules and regulations relating to corporate governance and internal contro l
in accordance with the requirements of the Company Law, the Securities Law, the Basic Internal Control Norms for Enterprises, the
Stock Listing Rules of the Shenzhen Stock Exchange and other statutory documents. The operations of the General Meeting of
Shareholders, the Board of Directors and the Supervisory Committee in Infore Enviro are in compliance with the provisions of the
relevant laws, regulations, the Articles of Association of the Company, the Rules of Procedures for the General Meeting of
Shareholders, the Rules of Procedures for the Board of Directors, and the Rules of Procedures for the Supervisory Committee.
Corresponding internal management systems with respect to such major issues as financial accounting, fundraising, external
investment, external guarantee, related-party transactions and information disclosure have been established in Infore Enviro to ensure
the legality and compliance of daily operations and decision-making procedures with respect to major matters.
II. Implementation of Internal Control
(I) Implementation of the information disclosure management policy
Upon verification, the Company effectively complied with the Information Disclosure Management Policy in 2021, with a good
performance in information disclosure, and has not been punished by the securities regulatory authorities for violation of rules on
information disclosure.
(II) Implementation of the financial internal control system
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Upon verification, with respect to finance and accounting, the Company has formulated the relevant internal management
system in accordance with the requirements of the Accounting Standards for Enterprises, the Company Law and other relevant laws
and regulations, which can ensure the accuracy and reliability of the financial and accounting information and the safety and
effectiveness of the financial and accounting systems.
(III) Implementation of other internal control systems
Upon verification, Infore Enviro complied with the provisions of the Articles of Association of the Company and the relevant
rules and regulations, performed necessary decision-making procedures, and implemented the internal control system quite well.
2. Details of material internal control deficiencies identified during the reporting period
□ Yes √ No
XIII. Management and Control of the Company over the Subsidiaries during the Report
Period
Integration Integration Problems in the Resolution measures Resolution Follow-up
Company
plan progress integration taken progress resolution plan
None None None None None None None
XIV. Self-assessment Report or Audit Report on Internal Control
1. Internal control self-assessment report
Date of full disclosure of the
April 29, 2022
internal control assessment report
Index of full disclosure of the For details, see the 2021 Internal Control Self-Assessment Report disclosed on Cninfo
internal control assessment report (http://www.cninfo.com.cn)
Ratio of the total assets of the
organization included in the
assessment to the total assets in the 100.00%
Company's consolidated financial
statements
Ratio of the revenue of the
organization included in the
assessment to the revenue in the 100.00%
Company's consolidated financial
statements
Deficiency identification criteria
Category Financial reports Non-financial reports
Significant deficiencies: Material deficiencies:
1. Anti-fraud procedures and controls; 1. Violations of national laws and
regulations, e.g., environmental pollution,
2. Internal control over unconventional or
serious damage to the local ecological
unsystematic transactions;
environment, failure to report or disclose
Qualitative criteria 3. Internal control over the selection and application
information as regulations;
of accounting policies with reference to the
2. Loss of more than 30% of middle and
generally accepted accounting principles;
senior managers and senior technical
4. Internal control over the financial reporting
personnel without timely replenishment,
procedures at the end of reporting period;
affecting the normal operations of the
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Material deficiencies: Company;
1. Fraud committed by directors, supervisors and 3. Failure to take timely and active
senior management members; response measures for frequent negative
2. Enterprise's correction of a financial report media reports, which involve a wide range
published or reported; of subjects, leading to a significant
3. Material misstatement in the current period's negative impact on the Company;
financial report identified by a certified public 4. Failure to remedy internal control
accountant, which was not identified in the course assessment findings, especially material
of running of internal control; or significant deficiencies;
4. Ineffective supervision over internal control by 5. Absence of policy control or systematic
the Audit Committee and internal audit agency of failure of critical businesses;
enterprise; 6. Unreasonable decision-making
5. Lack of post qualification or obvious procedures of enterprise, e.g., decision-
incompetence of principal financial personnel; making mistakes, resulting in
6. Ineffective compliance supervision and violations unsuccessful M&A;
of regulations that may have a significant impact on 7. Losses suffered by the enterprise in
the reliability of financial reports; consecutive years for reasons apart from
7. The management's failure to correct significant policy reasons, posing challenges to the
deficiency after a reasonable period of the Company's ability to continue as a going
deficiency being reported to the management. concern;
8. Lack of internal controls in
subsidiaries, leading to poor management.
Significant deficiencies:
1. Fraud committed by middle-level
managers;
2. Negative reports published by
influential media in that year;
3. Failure to remedy ordinary deficiencies
identified in the prior year without
reasonable explanation;
4. Incompetency of some managers or
operators.
Ordinary deficiencies:
1. Fraud committed by general
employees;
2. Failure to remedy ordinary deficiencies
identified in the prior year with
reasonable explanation;
Material deficiencies:
1. The potentially misstated amount in the profit
statement is greater than or equals to 1% of the
revenue in the consolidated financial statements of Ordinary deficiencies:
the Company for the most recent fiscal year or 5% Less than RMB 5 million;
of the total pre-tax profit;
Significant deficiencies:
2. The potentially misstated amount in the balance
RMB 5 million (including RMB 5
Quantitative criteria sheet is greater than or equals to 1% of the total
million) to RMB 10 million;
assets in the consolidated financial statements of the
Material deficiencies:
Company for the most recent fiscal year.
RMB 10 million and above
Significant deficiencies:
1. The potentially misstated amount in the profit
statement is greater than or equals to 0.5% of the
Company's revenue or 3% of the total pre-tax profit
in the consolidated financial statements for the most
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
recent fiscal year but less than 1% of the Company's
revenue or 5% of the total pre-tax profit in the
consolidated financial statements for the most
recent fiscal year.
2. The potentially misstated amount in the balance
sheet is greater than or equals to 0.5% of the total
assets in the consolidated financial statements of the
Company for the most recent fiscal year but less
than 1% of the total assets in the consolidated
financial statements for the most recent fiscal year.
Ordinary deficiencies:
1. The potentially misstated amount in the profit
statement is less than 0.5% of the Company's
revenue or 3% of the total pre-tax profit in the
consolidated financial statements for the most
recent fiscal year;
2. The potentially misstated amount in the balance
sheet is less than 0.5% of the total assets in the
consolidated financial statements of the Company
for the most recent fiscal year.
Number of material deficiencies in
0
financial reports
Number of material deficiencies in
0
non-financial reports
Number of significant deficiencies
0
in financial reports
Number of significant deficiencies
0
in non-financial reports
2. Audit report on internal control
√ Applicable □ Not Applicable
Opinion paragraph in the audit report on internal control
Infore Enviro maintained, in all material respects, effective internal control over financial reporting as of December 31, 20 21,
based on the Basic Internal Control Norms for Enterprises and other applicable rules.
Disclosure status of the audit report
Disclosed
on internal control
Disclosure date of the full audit
April 30, 2022
report on internal control
Index to the full audit report on
PCCPA Auditor’s Report [2022] No. 5131
internal control
Opinion type of the audit report on
Standard unqualified opinion
internal control
Indicate whether any material
deficiency in the non-financial No
reports
Indicate whether any non-standard opinion is expressed in the audit report on the Company’s internal control by the accounting firm
□ Yes √ No
Indicate whether the accounting firm’s report on the Company’s internal control is consistent with the internal control self-assessment
report issued by the Company’s Board of Directors.
69
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
√ Yes □ No
XV. Rectification of Self-Detected Problems through the Special Campaign to Improve
Governance of Listed Companies
According to the system of the CSRC for filling and reporting the special self-examination list for the governance of listed
companies, the Company conducted self-examination work during the special campaign based on the principle of seeking truth from
facts and in strict accordance with the Company Law, the Securities Law, the Standardized Operation of Companies Listed on the
Main Board and other relevant laws and regulations as well as its internal rules and regulations, carefully sorted out the is sues and
filled in the forms. Through this self-examination, the Company believes that its corporate governance complies with the
requirements of the Company Law, the Securities Law, the Standardized Operation of Companies Listed on the Main Board and
other laws and regulations, and that its corporate governance structure is relatively sound, the operations are standardized, and there
is no material problems or mistakes. The Company shall continue to strengthen management in the following aspects:
1. To further improve the internal control system of the Company
The Company shall systemically sort out and improve its corporate governance and internal control in accordance with the late st
laws and regulations and combined with the requirements of the regulatory authorities and its self-examination result, further perfect
its internal control system and implement the corresponding examination and approval procedure on the revised and improved
relevant systems.
2. To further facilitate special board committees to play their roles
During the reporting period, the Company maintained special committees in strict accordance with the relevant laws and
regulations, and the special committees conducted on-site inspection and supervised and guided the Company's operation and
management and the execution of resolutions of the Board of Directors. In the future, the Company shall continue to create
conditions for members of the special committees to familiarize with the business of the Company, facilitate them to play the ir roles
and provide advice and suggestions on the Company's development planning, operation and management, risk control, selection and
engagement of senior management members and back-up personnel, performance appraisal of senior management members, internal
control and internal audit, etc., to further improve the scientific decision-making capacity and risk prevention capacity of the
Company.
3. To further improve the quality of information disclosure
The Company shall optimize its policy system in strict accordance with the Administration of Information Disclosure Affairs
and in combination with its own situation. In daily information disclosure management, the Company shall conduct information
disclosure in a concise and easy-to-understand manner on the premise that the Company, its shareholders and other information
disclosure obligors shall ensure the authenticity, accuracy, completeness, timeliness and fairness of information disclosure. The
relevant personnel of information disclosure shall treat the information disclosure in a diligent manner, prevent mistakes and ensure
the quality of information disclosure and promote the level of information disclosure. During the reporting period, the Compa ny and
relevant personnel completed the information disclosure work in strict accordance with the requirements of laws and regulations.
4. To further strengthen the training of relevant personnel on laws and regulations
The Company shall, through optimizing internal training programs and intensifying training efforts, enhance the understanding
and memory of the relevant personnel on relevant laws and regulations and normative documents, such as the Securities Law, Stock
Listing Rules of the Shenzhen Stock Exchange, the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock
Exchange No.1 - Standardized Operation of the Companies Listed on the Main Board, Several Provisions on the Reduction of Shares
Held in a Listed Company by the Shareholders, Directors, Supervisors, and Senior Executives of the Listed Company, and the
Detailed Implementing Rules of the Shenzhen Stock Exchange for Shareholding Reduction by Shareholders, Directors, Supervisors
and Senior Executives of Listed Companies, and continuously strengthen relevant study, strictly observe relevant provisions, manage
70
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
its operation in a prudent manner and eradicate violations.
71
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part V Environmental and Social Responsibility
I. Major Environme ntal Issues
Indicate whether the listed company and its subsidiaries fell into major pollutant-discharge enterprises and institutions published by
national environmental protection authorities.
√ Yes □ No
Names of
Pollutant Total
main Number Total Excessi
Layout of Discharge discharge discha
Name of company or pollutants Way of of approved ve
discharge concentrat standards rge
subsidiary and discharge discharg discharge dischar
outlets ion implemente volum
characteristi e outlets volume ge
d e
c pollutants
Foshan Shunde
Huaqingyuan Water
Environmental Protection
Co., Ltd. (Phases I and II
Beijiang
sewage stations by the GB18918-
Continuous River trunk 325.21
gate), Foshan Shunde COD 1 8.1 mg/L 2002, Class 1606t/a None
discharge stream t
Yuanrun Water 1A
waterway
Environmental Protection
Co., Ltd. (Phase III
sewage station by the
gate)
Foshan Shunde
Huaqingyuan Water
Environmental Protection
Co., Ltd. (Phases I and II
Beijiang
sewage stations by the GB18918-
Ammonia Continuous River trunk
gate), Foshan Shunde 1 0.70 mg/L 2002, Class 28.10 t 200.75 t/a None
nitrogen discharge stream
Yuanrun Water 1A
waterway
Environmental Protection
Co., Ltd. (Phase III
sewage station by the
gate)
Foshan Shunde
Huaqingyuan Water
Environmental Protection
Co., Ltd. (Phases I and II
Beijiang
sewage stations by the GB18918-
Total Continuous River trunk
gate), Foshan Shunde 1 0.28 mg/L 2002, Class 11.24 t 20.075 t/a None
phosphorus discharge stream
Yuanrun Water 1A
waterway
Environmental Protection
Co., Ltd. (Phase III
sewage station by the
gate)
Foshan Shunde
Beijiang
Huaqingyuan Water GB18918-
Total Continuous River trunk 232.87
Environmental Protection 1 5.8mg/L 2002, Class 602.25 t/a None
nitrogen discharge stream t
Co., Ltd. (Phases I and II 1A
waterway
sewage stations by the
72
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
gate), Foshan Shunde
Yuanrun Water
Environmental Protection
Co., Ltd. (Phase III
sewage station by the
gate)
Funan Greenlander North side
Waste 80m 2.4mg/Nm GB18485-
Environmental Protection 1 of the main 1.044t 14.6t/a None
gas/smoke chimney 2014
Energy Co., Ltd. plant
Funan Greenlander North side
Waste 80m 36.9mg/N GB18485- 23.475
Environmental Protection 1 of the main 100t/a None
gas/SO2 chimney m 2014 t
Energy Co., Ltd. plant
Funan Greenlander North side
Waste 80m 159.6mg/ GB18485- 95.456
Environmental Protection 1 of the main 96.72t/a None
gas/NOx chimney Nm 2014 t
Energy Co., Ltd. plant
Funan Greenlander North side
Waste 80m 36.4mg/N GB18485- 22.857
Environmental Protection 1 of the main / None
gas/HCl chimney m 2014 t
Energy Co., Ltd. plant
Funan Greenlander North side
Waste 80m 19.1mg/N GB18485- 10.463
Environmental Protection 1 of the main / None
gas/CO chimney m 2014 t
Energy Co., Ltd. plant
Funan Greenlander North side
Waste 80m 0.02407m GB18485-
Environmental Protection 1 of the main / / None
gas/Pb chimney g/Nm 2014
Energy Co., Ltd. plant
Funan Greenlander North side
Waste 80m 0.0000163 GB18485-
Environmental Protection 1 of the main / / None
gas/Cd chimney 97mg/Nm2014
Energy Co., Ltd. plant
Funan Greenlander North side
Waste 80m 0.0048mg/ GB18485-
Environmental Protection 1 of the main / / None
gas/Hg chimney Nm 2014
Energy Co., Ltd. plant
Funan Greenlander North side
Waste 80m 0.049ng- GB18485-
Environmental Protection 1 of the main / / None
gas/dioxin chimney TEQ/m 2014
Energy Co., Ltd. plant
West side of
Shouxian Greenlander Waste 80m GB18485-
1 the main 1.79mg/m 0.81t / None
New Energy Co., Ltd. gas/smoke chimney 2014
plant
West side of
Shouxian Greenlander Waste 80m 40.97mg/ GB18485-
1 the main 29.23t 70t/a None
New Energy Co., Ltd. gas/SO2 chimney m 2014
plant
West side of
Shouxian Greenlander Waste 80m 199.09mg/ GB18485- 139.37
1 the main 144t/a None
New Energy Co., Ltd. gas/NOx chimney m 2014 t
plant
West side of
Shouxian Greenlander Waste 80m 47.41mg/ GB18485-
1 the main 30.16t / None
New Energy Co., Ltd. gas/HCl chimney m 2014
plant
West side of
Shouxian Greenlander Waste 80m GB18485-
1 the main 8.74mg/m 1.23t / None
New Energy Co., Ltd. gas/CO chimney 2014
plant
West side of
Shouxian Greenlander Waste 80m 0.024mg/ GB18485-
1 the main / / None
New Energy Co., Ltd. gas/Pb chimney m 2014
plant
Shouxian Greenlander Waste 80m 1 West side of 0.0019mg/ GB18485- / / None
73
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
New Energy Co., Ltd. gas/Cd chimney the main m 2014
plant
West side of
Shouxian Greenlander Waste 80m 0.00007m GB18485-
1 the main / / None
New Energy Co., Ltd. gas/Hg chimney g/ Nm 2014
plant
West side of
Shouxian Greenlander Waste 80m 0.0018ngT GB18485-
1 the main / / None
New Energy Co., Ltd. gas/dioxin chimney EQ/m 2014
plant
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.86mg/ GB18485-
1 the main 0.32t / None
Power Co., Ltd. (1# gas/smoke chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 12.83mg/ GB18485-
1 the main 9.35t 58t/a None
Power Co., Ltd. (1# gas/SO2 chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 180.38mg/ GB18485- 119.72
1 the main 148.85t/a None
Power Co., Ltd. (1# gas/NOx chimney Nm 2014 t
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 16.01mg/ GB18485-
1 the main 10.58t / None
Power Co., Ltd. (1# gas/HCl chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 10.97mg/ GB18485-
1 the main 7.45t / None
Power Co., Ltd. (1# gas/CO chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.006mg/ GB18485-
1 the main / / None
Power Co., Ltd. (1# gas/Pb chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.00005m GB18485-
1 the main / / None
Power Co., Ltd. (1# gas/Cd chimney g/ Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.0004mg/ GB18485-
1 the main / / None
Power Co., Ltd. (1# gas/Hg chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.021ng- GB18485-
1 the main / / None
Power Co., Ltd. (1# gas/dioxin chimney TEQ/m 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 1.12mg/ GB18485-
1 the main 0.53t / None
Power Co., Ltd. (2# gas/smoke chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 25.24mg/ GB18485-
1 the main 9.00t 58t/a None
Power Co., Ltd. (2# gas/SO2 chimney Nm 2014
plant
furnace)
Xiantao Greenlander Waste 80m 1 West side of 179.64mg/ GB18485- 93.80t 148.85t/a None
74
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Environmental Protection gas/NOx chimney the main Nm 2014
Power Co., Ltd. (2# plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 14.16mg/ GB18485-
1 the main 8.19t / Nnoe
Power Co., Ltd. (2# gas/HCl chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 31.93mg/ GB18485-
1 the main 5.76t / None
Power Co., Ltd. (2# gas/CO chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.007mg/ GB18485-
1 the main / / None
Power Co., Ltd. (2# gas/Pb chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.00007m GB18485-
1 the main / / None
Power Co., Ltd. (2# gas/Cd chimney g/ Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.0025mg/ GB18485-
1 the main / / None
Power Co., Ltd. (2# gas/Hg chimney Nm 2014
plant
furnace)
Xiantao Greenlander
West side of
Environmental Protection Waste 80m 0.010ng- GB18485-
1 the main / / None
Power Co., Ltd. (2# gas/dioxin chimney TEQ/m 2014
plant
furnace)
Poyang Greenlander North side
Waste 80m 0.790mg/ GB18485- 0.2223
Renewable Energy Co., 1 of the main 12t/a None
gas/smoke chimney Nm 2014 t
Ltd. plant
Poyang Greenlander North side
Waste 80m 22.689mg/ GB18485- 6.3807
Renewable Energy Co., 1 of the main 80t/a None
gas/SO2 chimney Nm 2014 t
Ltd. plant
Poyang Greenlander North side
Waste 80m 151.684m GB18485- 42.656
Renewable Energy Co., 1 of the main 250t/a None
gas/NOx chimney g/ Nm 2014 8t
Ltd. plant
Poyang Greenlander North side
Waste 80m 30.054mg/ GB18485- 8.4518
Renewable Energy Co., 1 of the main / None
gas/HCl chimney Nm 2014 t
Ltd. plant
Poyang Greenlander North side
Waste 80m 2.466mg/ GB18485- 0.6935
Renewable Energy Co., 1 of the main / None
gas/CO chimney Nm 2014 t
Ltd. plant
Poyang Greenlander North side
Waste 80m 0.019mg/ GB18485-
Renewable Energy Co., 1 of the main / / None
gas/Pb chimney Nm 2014
Ltd. plant
Poyang Greenlander North side
Waste 80m 0.000243 GB18485-
Renewable Energy Co., 1 of the main / / None
gas/Cd chimney mg/ Nm 2014
Ltd. plant
Poyang Greenlander North side
Waste 80m 0.000077 GB18485-
Renewable Energy Co., 1 of the main / / None
gas/Hg chimney mg/ Nm 2014
Ltd. plant
Poyang Greenlander Waste 80m 1 North side 0.0271ng- GB18485- / / None
75
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Renewable Energy Co., gas/dioxin chimney of the main TEQ/m 2014
Ltd. plant
Biyang County Fenghe South side
Waste 80m 10.64mg/ GB18485-
New Energy Power Co., 1 of the main 0.157t 10.95t/a None
gas/smoke chimney Nm 2014
Ltd. plant
Biyang County Fenghe South side
Waste 80m 38.36mg/ GB18485-
New Energy Power Co., 1 of the main 6.937t 31.68t/a None
gas/SO2 chimney Nm 2014
Ltd. plant
Biyang County Fenghe South side
Waste 80m 215.88mg/ GB18485- 33.779
New Energy Power Co., 1 of the main 159.72t/a None
gas/NOx chimney Nm 2014 t
Ltd. plant
Biyang County Fenghe South side
Waste 80m 25.6mg/ GB18485-
New Energy Power Co., 1 of the main 5.104t / None
gas/HCl chimney Nm 2014
Ltd. plant
Biyang County Fenghe South side
Waste 80m 60.8mg/ GB18485-
New Energy Power Co., 1 of the main 0.864t / None
gas/CO chimney Nm 2014
Ltd. plant
Biyang County Fenghe South side
Waste 80m 0.1221mg/ GB18485-
New Energy Power Co., 1 of the main / / None
gas/Pb chimney Nm 2014
Ltd. plant
Biyang County Fenghe South side
Waste 80m 0.000481 GB18485-
New Energy Power Co., 1 of the main / / None
gas/Cd chimney mg/ Nm 2014
Ltd. plant
Biyang County Fenghe South side
Waste 80m 0.00143m GB18485-
New Energy Power Co., 1 of the main / / None
gas/Hg chimney g/ Nm 2014
Ltd. plant
Biyang County Fenghe South side
Waste 80m 0.01195ng GB18485-
New Energy Power Co., 1 of the main / / None
gas/dioxin chimney TEQ/Nm 2014
Ltd. plant
Discharge
outlets of
kitchen
waste and
Ammonia:
sludge were
0.06mg/
Ammonia set at the
Xiantao Yinghe Nm
and end of the GB14554-
Environmental Protection Centralized 2 hydrogen NA / None
hydrogen deodorizatio 93
Co., Ltd. sulfide:
sulfide n system,
1.5mg/
and waste
Nm
gas was
discharged
through the
chimney
Discharge
outlets of
Smoke:
kitchen
20mg/ Smoke:
biogas
Nm SO2: 0.241t;
Xiantao Yinghe combustion
Smoke, SO2 50mg/ GB13271- SO2:
Environmental Protection Centralized 1 were set at 0 None
and NOX Nm 2014 0.467t;
Co., Ltd. the end of
NOX: NOX:
the
200mg/ 1.809t
combustion
Nm
system, and
waste gas
76
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
was
discharged
through the
chimney
Sewage
discharge
outlets were
set at the
end of the
COD:
sewage
2.88t;
treatment COD: COD:
ammo
Xiantao Yinghe COD and facility, and 500mg/L; 4.2627t;
GB8978- nia
Environmental Protection ammonia Centralized 1 sewage was ammonia ammonia None
1996 nitroge
Co., Ltd. nitrogen discharged nitrogen: nitrogen:
n:
to the no limit 0.427t
0.0155
sewage plant
t
in the west
of the city
after
centralized
treatment
Construction and operation of pollution prevention and control facilities:
The Company, in strict accordance with the environmental protection laws and regulations such as Environmental Protection
Law of the People's Republic of China, Law of the People's Republic of China on Prevention and Control of Air Pollution, Law of
the People's Republic of China on Prevention and Control of Environmental Pollution Caused by Solid Waste, and Law of the
People's Republic of China on Prevention and Control of Water Pollution, as well as the administrative requirements of simultaneous
design, construction and application of main works and pollution prevention and control measures, designed and constructed
pollution prevention and control facilities and main works simultaneously and carried out acceptance inspections and put them into
use simultaneously. The Company ran its water treatment projects with mature and reliable production process, conducted daily
sampling and recorded the operation in full, maintained stable operation throughout the year. The Company also ran its domest ic
waste incineration power generation projects with the most mature and stable process in the industry, ensured sufficient
environmental consumables input in these projects, maintained stable operation throughout the year. As required, all key pollutant
discharge projects of the Company were equipped with online monitoring devices at the outlets, with monitoring data directly sent to
the national environmental platform. All the projects were supervised by national environmental protection authorities, with all
emissions in 2021 meeting the requirements.
Assessment on the environmental impact of construction projects and other administrative licenses of environmental protection
The Company has been running all its key pollutant discharge projects according to laws and regulations for many years . During
the construction period, environmental impact assessment was carried out for these projects in accordance with relevant laws and
regulations such as Environmental Protection Law of the People's Republic of China and Law of the People's Republic of China on
Environmental Impact Assessment, and environmental impact assessment documents were approved by environmental authorities.
Besides, the Company obtained approval from environmental authorities before pilot production, organized environmental protection
acceptance inspection for completed project during pilot production, and simultaneously designed, constructed and put into us e the
supporting environmental protection facilities and the main works.
Contingency plan for environmental emergencies
The Company commissioned a professional third-party organization to develop a contingency plan for environmental
emergencies for each of its key pollutant discharge projects, which was approved and filed for record. In 2021, it carried out regular
training and drills among its employees in different projects according to the requirements and contents of the contingency plan to
enable them to timely and accurately deal with environmental pollution emergencies. In 2021, no major environmental risk incidents
77
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
occurred in any of the projects.
Environmental self-monitoring plan
The Company developed the 2021 Environmental Self-Monitoring Plan for each of its key pollutant discharge projects, and filed
them with local ecological and environmental protection authorities. It also commissioned a professional third-party inspection
institution to carry out regular environmental monitoring of the pollutants discharged by the projects.
Administrative penalties for environmental issues during the reporting period
Impact on the
Name of company or production and Rectification
Reason Violation Penalty
subsidiary operation of listed measures
company
The aforesaid
administrative
penalty given to
Shenzhen Yinglian
The sealing Urban
measures were not Environmental
well performed and Service Co., Ltd. is a
There is no
Shenzhen Yinglian the waste was warning on general The company was
significant impact on
Urban exposed when the violation against law. ordered to make
the production and Rectified in time
Environmental urban waste Such violation did rectification and
operation of listed
Service Co., Ltd. transport vehicles not fall into the fined RMB 2,000.
company.
transported urban situation of "failing
domestic waste to to correct within the
the designated place. time limit or causing
serious
consequences", and
did not constitute a
major illegal act.
The aforesaid
administrative
penalty given to
Shenzhen Bao’an
Yinglian Urban
The sewage was
Service Co., Ltd. is a
discharged into
warning on general The company was There is no
rainwater pipe
Shenzhen Bao’an violation against law. ordered to make significant impact on
network in the area
Yinglian Urban Such violation did rectification and the production and Rectified in time
where the rain and
Service Co., Ltd. not fall into the received a warning, operation of listed
sewage should be
situation of "failing without any fine. company.
discharged
to correct within the
separately.
time limit or causing
serious
consequences", and
did not constitute a
material illegal act.
Other environmental information to be disclosed
The Company disclosed the environmental information of each of its key pollutant discharge projects on the government's
environmental information disclosure platform on a regular basis according to the requirements of local environmental authorities.
Measures taken during the reporting period to reduce carbon emissions and their effects
√ Applicable □ Not Applicable
The Company made rational use of waste resources and effectively reduced environmental carbon emissions through
environmental protection industrial modes such as domestic waste incineration for power generation, kitchen waste resource
78
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
utilization and sewage treatment. In terms of the project of domestic waste incineration for power generation, the greenhouse gas
emission reduction is about 0.78-1.32kg per kilowatt-hour, and 0.2-0.3TCO2e per ton of waste, with sound emission reduction effect.
Other information related to environmental protection
NA
II. Corporate Social Responsibility
For details, please refer to the 2021 Corporate Social Responsibility Report disclosed at Cninfo (www.cninfo.com.cn).
III. Performance in Consolidating Achievements of Poverty Alleviation and Promoting Rural
Revitalization
In 2021, the Company actively took social responsibility, participated in local education support activities, and donated funds
and materials to help promote rural revitalization with targeted poverty alleviation. All subsidiaries of the Company actively
responded to the call of governments at all levels and actively participated in local education support activities, including a pledge of
RMB 100,000 to Shangyu People's Education Fund, which will be used to improve the conditions of local schools at all levels and
categories, encourage and reward teachers and students, help the poverty-stricken students, etc.; a donation of RMB 12,000 to Funan
Youth Volunteers Association to help impoverished college students; a donation of RMB 10,000 for the "Assisting the Impoverished
Student in Autumn" activity organized by Biyang County Education Bureau, Henan Province; a pledge of RMB 20,000 to Daliang
Educational Charity Fund; a donation of RMB 15,000 to Shenzhen Xinzhiqing Education Development Foundation.
In addition, the Company actively explored ways to carry out targeted poverty alleviation. Its subsidiaries participated in r ural
revitalization activities such as "supporting rural revitalization by Biyang Charity Fund", "paired-up assistance in poverty alleviation
in Long'an, Mashan and Shanglin counties in Guangxi", donating funds for "Anhua Rural Revitalization Fund and Shimen Citrus
Festival", participating in "Assisting in poverty alleviation in Dashuiping Village in Xinhua County and helping to improve the
village environment" activity organized by the United Front Work Department of CPC Central Committee of Hunan Province, and
donated about RMB 495,000 in funds and materials to meet local development needs, making positive contributions to rural
revitalization.
The Company always adheres to the unity of economic benefits and social benefits, and pursues healthy and sustainable
development. It aims to increase its contribution to the local economy, and finally realize the common progress and development of
enterprises and society while striving to achieve its own development and growth.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part VI Significant Events
I. Performance of undertakings
1. Undertakings of the Company’s de facto controller, shareholders, related parties, and acquirer, as well as the Company and other commitment makers
fulfilled in the reporting period or ongoing at the period-end
√ Applicable □ Not Applicable
Term of
Undertaking Party Type Content Date Fulfillment of undertakings
undertakings
Undertaking on
shareholding -- -- -- -- -- --
structure reform
Undertakings
made in
acquisition -- -- -- -- -- --
report or equity
change report
Undertaking on
De facto It is being properly fulfilled
not to relinquish I have no plan to relinquish control of the listed company in the next 60 January 3,
controller: He 60 months without breach of such
the control of the months from the date of completion of this transaction. 2019
Jianfeng undertaking.
listed company
1. The shares of the listed company acquired from this transaction shall
not be transferred within 36 months from the closing date of issuance.
Undertakings
Ningbo Infore 2. In case the closing price of the listed company's stock is lower than
made in asset It is being properly fulfilled
Asset Undertaking on its issue price for 20 consecutive trading days within 6 months from the January 3,
restructuring 42 months without breach of such
Management Co., trading restrictions completion of this transaction, or the closing price is lower than the 2019
undertaking.
Ltd. issue price at the end of six months from the completion of this
transaction, the lock-up period for Ningbo Infore's shareholding in the
listed company shall automatically extend for at least 6 months.
Counterparties Undertaking on The shares of the listed company acquired from this transaction shall January 3, It is being properly fulfilled
36 months
Ningbo Yingtai, trading restrictions not be transferred within 36 months from the closing date of issuance. 2019 without breach of such
80
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Ningbo undertaking.
Zhongfeng,
Ningbo Liantai
Undertaking to
avoid horizontal
competition,
De facto controller
regulate and It is being properly fulfilled
He Jianfeng, Undertaking to avoid horizontal competition, regulate and reduce August 15,
reduce related- Indefinitely without breach of such
Ningbo Infore, related-party transactions, and independence of listed companies 2018
party transactions, undertaking.
Infore Holding
and independence
of listed
companies
Ningbo Infore,
Undertaking to
Hongchuang
avoid horizontal
Investment, It is being properly fulfilled
competition, and Undertaking to avoid horizontal competition, and regulate and reduce August 15,
Zoomlion, Ningbo Indefinitely without breach of such
regulate and related-party transactions 2018
Yingtai, Ningbo undertaking.
reduce related-
Zhongfeng,
party transactions
Ningbo Liantai
Undertaking Core personnel such as the general manager of the Company (the
Ningbo Yingtai,
related to the specific list of main management personnel and other core personnel The undertaking has been
Ningbo November
employment term shall be verified and confirmed by Infore Enviro) shall be incumbent 36 months fulfilled and strictly observed by
Zhongfeng, 27, 2018
and non- with the target company for at least 36 months from the closing date of the undertaking parties.
Ningbo Liantai
solicitation the underlying shares.
Not fulfilled properly. The
audited net profit (net profit is the
lower of before or after deducting
non-recurring profit or loss) for
The accumulative total net profit recorded by Lianjiang Greenlander the period from 2016 to 2019 is
Greenlander
New Energy Co., Ltd, Xiantao Greenlander Environmental Protection RMB 2,156,500, RMB -
Investment Undertaking
Power Co., Ltd., Funan Greenlander Environmental Energy Co., Ltd. October 14, 24,424,500, RMB -19,192,800,
Holding Co., Ltd. related to 48 months
and Shouxian Greenlander New Energy Co., Ltd. from 2016 to 2019 2015 and RMB -625,700 respectively;
and Zheng performance
shall not be less than RMB 120 million (net profit is subject to the and the accumulated net profit is
Weixian
lower after deducting non-recurring profit or loss). RMB -42,086,600 which is RMB
162,086,600 less than the
performance commitment,
indicating a failure to achieve the
commitment in respect of the net
81
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
profit for 2016 - 2019.
From 2016 to 2019, the Greenlander Environmental signed a new BOT Not fulfilled properly. The newly
Greenlander
Agreement on Waste Incineration Power Generation (subject to the signed projects by Greenlander
Investment
Project signing of franchise agreement), with an agreed daily disposal capacity October 14, Environmental from 2016 to
Holding Co., Ltd. 48 months
undertakings of no less than 6,500 tons (the daily disposal capacity of a single project 2015 2019 totaled 1,400 tons, 5,100
and Zheng
shall be no less than 500 tons, and at least one shall be more than 2000 tons less than the project
Weixian
tons). undertaking.
Greenlander
Jiujiang Company must start the construction and obtain approval prior
Investment Project December 31,
to December 31, 2020. In case of failure to commence or the October 14,
Holding Co., Ltd. construction 2020 48 Not fulfilled properly.
construction is recovered by the government, it shall compensate the 2015
and Zheng undertakings months
listed company at a consideration of no less than RMB 5 million.
Weixian
The undertaking has been
Undertaking on The shares subscribed for this time shall not be transferred within 36 January 3,
He Jianfeng 36 months fulfilled and strictly observed by
Undertakings trading restrictions months from the closing date of this issuance. 2018
the undertaking parties.
made in IPO or
refinancing The undertaking has been
Undertaking on The shares subscribed for shall not be transferred within 36 months January 3,
She Changguang 36 months fulfilled and strictly observed by
trading restrictions from the closing date of this issuance. 2018
the undertaking parties.
Undertakings
related to equity -- -- -- -- -- --
incentives
Undertakings
made to
minority -- -- -- -- -- --
shareholders of
the company
Whether the
undertakings
No
were fulfilled on
time
If the
The main cause is that the project construction progress was slower than expected. To safeguard the rights and interests of the Company and protect the interests of
undertaking is
shareholders, the Company applied to Foshan Intermediate People's Court for asset preservation against Greenlander Investment Holding Co., Ltd., Zheng Weixian, and Ren
overdue, the
Zhe on November 5, 2018. The court has frozen 30% equity interest of Greenlander Investment Holding Co., Ltd. in Shenzhen Greenlander Environmental Protection Co., Ltd.
specific reasons
as well as Zheng Weixian's deposits of RMB 9,816.09. On August 21, 2020, the Company received a counterclaim filed by Greenla nder Investment Holding Co., Ltd. and
for not fulfilling
Zheng Weixian to the court. On August 24, 2020 and September 24, 2020, the court held two hearings on the case, and on Januar y 13, 2021, the court issued a judgment of first
it and the next
instance. Greenlander Investment Holding Co., Ltd. and Zheng Weixian filed an appeal on January 29, 2021, and the court held a public hearing on the case of second instanc e
work plan shall
82
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
be elaborated on November 2, 2021, and has not yet issued the judgment of second instance.
2. Where any earnings forecast was made for any of the Company’s assets or projects and the reporting period is still within the forecast period, the
Company shall explain whether the performance of the asset or project reaches the earnings forecast and why
□ Applicable √ Not Applicable
II. Occupation of the Company’s Capital by the Controlling Shareholder or Other Related Parties for Non-Operating Purposes
□ Applicable √ Not Applicable
No such cases in the reporting period.
III. Illegal Provision of Guarantees for External Parties
□ Applicable √ Not Applicable
No such cases in the reporting period.
IV. Explanations Given by the Board of Directors Regarding the "Non-standard Audit Opinion" for the Latest Period
□ Applicable √ Not Applicable
83
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
V. Explanation of the Board of Directors, the Supervisory Committee, and Independent
Directors (If Any) Regarding the "Non-standard Audit Opinion" for the Reporting Period
□ Applicable √ Not Applicable
VI. Reason for Changes in Accounting Policies, Accounting Estimates or Corrections of
Material Accounting Errors as Compared to the Financial Report for the Prior Year
√ Applicable □ Not Applicable
1. The Company has implemented the revised Accounting Standard No. 21 for Business Enterprises—Leasing (hereinafter
referred to as the "New Leasing Standard") since 1 January 2020 (hereinafter referred to as the first implementation date).
(1) For existing contracts prior to the first implementation date, the Company has chosen not to reassess whether they are le ases
or contain leases.
(2) For leases in which the Company is the lessee, the Company has adjusted the amount of retained earnings and other related
items in the financial statements at the beginning of the reporting period based on the cumulative effects of the first imple mentation
date of the new leasing standard and the previous standard, without adjusting the information for comparable periods. The specific
process was as follows:
For finance leases prior to the first implementation date, the Company measured the right-of-use assets and lease liabilities
respectively at the original carrying amounts of the finance lease assets and finance lease payables on the first implementat ion date.
For operating leases prior to the first implementation date, the Company measured the lease liabilities on the first
implementation date based on the present value of the remaining lease payments discounted at the Company's incremental borrow ing
rate as of the first implementation date, and measured the right-of-use assets based on an amount equal to the lease liabilities, with
necessary adjustments for prepaid rentals.
On the first implementation date, the Company conducted impairment tests on right-of-use assets and accounted for them
accordingly as per Note V.31 to the Financial Statements.
1) The major effects of implementing the new leasing standard on the financial statements as of January 1, 2021:
Balance sheet
Item December 31, 2021 Effect of the new leasing January 1, 2021
standard
Right-of-use assets 30,945,067.78 30,945,067.78
Non-current liabilities due within 150,862,201.57 7,701,219.17 158,563,420.74
one year
Lease liabilities 23,243,848.61 23,243,848.62
2) The weighted average of the Company's incremental borrowing rate used for the lease liabilities recorded in the balance sheet
on the first implementation date was 4.65%.
3) Simplified treatment of operating leases prior to the first implementation date
① For leases completed within 12 months from the first implementation date, the Company applied the simplified approach and
did not recognize right-of-use assets and lease liabilities;
② The Company used the same discount rate for lease contracts with similar characteristics when measuring the lease liability;
③ The measurement of right-of-use assets did not include initial direct costs;
④ The Company determined the lease term based on the actual exercise of the renewal option or termination option prior to the
first implementation date and other updates;
The above simplified treatment has no significant impact on the Company's financial statements.
84
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(3) For operating lease contracts for low-value assets that existed prior to the first implementation date, the Company adopted
the simplified approach of not recognizing right-of-use assets and lease liabilities and accounting for them as per the new leasing
standard from the first implementation date.
(4) Leases for which the Company is the lessor were accounted for as per the new leasing standard from the first implementation
date.
(5) Treatment of existing sale and leaseback transactions prior to the first implementation date
For sale and leaseback transactions existing prior to the first implementation date, the Company did not reassess on the firs t
implementation date whether the transfer of assets was in conformity with the provisions of Accounting Standard for Business
Enterprises No. 14 – Revenue for accounting as a sale.
For sale and leaseback transactions accounted for as sales and finance leases prior to the first implementation date, the Company,
as the seller (lessee), accounted for the leasebacks in the same manner as other finance leases existing on the first implementation
date and continued to amortize the related deferred revenue or loss over the lease term.
For sale and leaseback transactions accounted for as sales and operating leases prior to the first implementation date, the
Company, as the seller (lessee), accounted for the leasebacks in the same manner as other operating leases existing on the first
implementation date, and adjusted the right-of-use assets for the related deferred revenue or loss recorded on the balance sheet prior
to the first implementation date.
2. The Company has implemented, since January 26, 2021, Interpretation No. 14 of the Accounting Standards for Business
Enterprises (hereinafter referred to as Interpretation No. 14) issued in 2021 by the Ministry of Finance.
The Company retroactively adjusted the contracts of relevant PPP projects that commenced before December 31, 2020, and had
not been completed by the effective date of Interpretation No. 14, and the amount of relevant projects in the financial statements at
the beginning of 2021 based on the cumulative effects, without adjusting the information for comparable periods. The major ef fects
of the adjustment on the Company's financial statements as of January 1, 2021:
Balance sheet
Item
December 31, 2021 Effects January 1, 2021
Construction in progress 1,782,529,087.95 -1,711,793,604.00 70,735,483.95
Intangible assets 3,163,935,814.41 1,711,793,604.00 4,875,729,418.41
3) The Company has implemented, since December 31, 2021, the provision of "Presentation of Centralized Fund Management"
in the Interpretation No. 15 of the Accounting Standards for Business Enterprises issued by the Ministry of Finance , and such change
in accounting policies has no impact on the Company's financial statements.
VII. Reason for Changes in Scope of the Consolidated Financial Statements as Compared to
the Financial Report for the Prior Year
√ Applicable □ Not Applicable
For details of the changes in the scope of the consolidated financial statements during the reporting period, please refer to Note
VIII "Changes in the Scope of Consolidation" in Part X Financial Report.
VIII. Engage ment and Disengagement of Accounting Firm
Incumbent accounting firm
Pan-China Certified Public Accountants LLP (Special General
Name of the domestic accounting firm
Partnership)
The Company’s payment to the domestic accounting firm (RMB 310
85
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
10,000)
Consecutive years of the audit service provided by the domestic
20
accounting firm
Names of the certified public accountants from the domestic
Bian Shanshan and Pan Jianwu
accounting firm
Consecutive years of the audit service provided by the certified
3 years and 1 year respectively
public accountants from the domestic accounting firm
Name of the overseas accounting firm (if any) Not applicable
Whether the CPA firm was changed for the reporting period
□ Yes √ No
Engagement of any accounting firm for internal control audit, financial advisor, or sponsor
√ Applicable □ Not Applicable
During the year, Pan-China Certified Public Accountants LLP (Special General Partnership) was appointed as the accounting
firm for the Company's internal control audit.
IX. Possibility of Delisting after the Disclosure of this Report
□ Applicable √ Not Applicable
X. Bankruptcy and Reorganization
□ Applicable √ Not Applicable
No such cases in the reporting period.
XI. Material Litigation and Arbitration
□ Applicable √ Not Applicable
No such cases in the reporting period.
During the reporting period, other lawsuits that did not meet the disclosure criteria for material litigation primarily included
purchase and sales contract disputes, with a total amount of approximately RMB 149 million, which are not expected to incur a ny
provision of large amount.
XII. Punishme nts and Rectifications
□ Applicable √ Not Applicable
No such cases in the reporting period.
XIII. Credit Quality of the Company as well as Its Controlling Shareholder and De Facto
Controller
√ Applicable □ Not Applicable
During the reporting period, the Company as well as its controlling shareholder and de facto controller were of good credit
quality, with no such cases as non-fulfillment of effective court judgments or outstanding debts of large amounts due and unpaid.
86
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
XIV. Significant Related-Party Transactions
1. Related-party transactions arising from daily operation
√ Applicable □ Not Applicable
Proporti
Pricing Approv Availabl
Contents on in
Type of principl Transact ed e
Related of the Over Method Disclos
related- e of Transact ion transacti market
Related party related- amount the of Disclos ure
party related- ion amount on price for
party relations party of approve settleme ure date docume
transacti party price (RMB L\line similar
hip transacti similar d line nt nt
on transacti 10,000) (RMB transacti
on transacti
on 10,000) ons
ons (%)
Shareho
lder
holding Goods As per
Goods
more or contract April www.c
or Market 21,318.
Zoomlion than 5% financia -- 80,550 No ual -- 23, ninfo.c
financial price 44
of the l provisio 2021 om.cn
services
Compan services ns
y’s
shares
21,318.
Total -- -- -- 80,550 -- -- -- -- --
44
Details of any large-amount sales
None
return
Give the actual fulfillment situation in
the reporting period (if any) where an
estimate by type had been made for
None
the total amounts of daily related-
party transactions to occur in the
current period
Reason for any significant difference
between the transaction price and the Not applicable
market reference price (if applicable)
2. Related-party transactions regarding purchase or sales of assets or equity interests
□ Applicable √ Not Applicable
No such cases in the reporting period.
3. Related-party transactions regarding joint investments in external parties
□ Applicable √ Not Applicable
No such cases in the reporting period.
4. Current associated rights of credit and liabilities
√ Applicable □ Not Applicable
Indicate whether there were any associated rights of credit and liabilities for non-operating purposes
□ Yes √ No
87
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
No such cases in the reporting period.
5. Transactions with finance companies with related party relationships
√ Applicable □ Not Applicable
Deposit business
Current period actual
Maximum
Opening Total
Related party daily deposit Range of Ending balance
Related parties balance (RMB Total deposited withdrawn
relationship limit (RMB 1 deposit rate amount (RMB (RMB 10,000)
10,000) amount (RMB
0,000) 10,000)
10,000)
Related
company to a
Zoomlion shareholder
No interest
Finance Co., holding more 0 443.46 7,838.95 8,282.41 0
accrued
Ltd. than 5% of the
Company’s
shares
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not Applicable
There is no deposit, loan, credit, or other financial business between the finance company controlled by the Company and
related parties.
7. Other material related-party transactions
□ Applicable √ Not Applicable
No such cases in the reporting period.
XV. Significant Contracts and Their Execution
1. Entrustment, contracting, and leasing
(1) Entrustment
□ Applicable √ Not Applicable
No such cases in the reporting period.
(2) Contracting
□ Applicable √ Not Applicable
No such cases in the reporting period.
(3) Leasing
√ Applicable □ Not Applicable
88
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Description of leases
In accordance with the Property Lease Contract signed between the Company and the related party Foshan Shunde Yinghai
Investment Co., Ltd., the Company leased the 23rd floor of Yingfeng Business Building at 8 Yixin Road, Junlan Community, Beijiao
Town, Shunde District, Foshan City, as the business premises with a construction area of 1,578.68 sqm. The rent payable for the year
2020 was RMB 1,296,100, and the actual payment was RMB 1,296,100. As of December 31, 2021, the above amounts have been
settled.
Items that brought about profits or losses to the Company accounting for more than 10% of the gross profit of the Company during
the reporting period
□ Applicable √ Not Applicable
No leasing items brought about profits or losses to the Company accounting for more than 10% of the gross profit of the
Company during the reporting period.
2. Major guarantees
√ Applicable □ Not Applicable
Unit: RMB 10,000
Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)
Disclosure
Counter Guarante
date of the
Actual Actual - e for a
Guaranteed guarantee Line of Guarantee Security (if Term of Complete
occurrence guarantee guarant related
party line guarantee type any) guarantee d or not
date amount ees (if party or
announcem
any) not
ent
Joint and No No
Buyer's
April 23, October 29, several
credit 15,000 3,294.09 NA -- 2 years
2021 2021 liability
business
guarantee
Joint and
Buyer's
April 23, June 30, several
credit 20,000 5,749.52 NA -- 1 year No No
2021 2021 liability
business
guarantee
Joint and
Buyer's
April 23, September several
credit 16,528.1 16,528.1 NA -- 1 year No No
2021 18, 2021 liability
business
guarantee
Joint and
Buyer's
April 23, May 18, several
credit 778.23 778.23 NA -- 1 year No No
2021 2021 liability
business
guarantee
Joint and
Buyer's
April 23, May 14, several
credit 4,948 4,948 NA -- 1 year No No
2021 2021 liability
business
guarantee
Lianjiang
Joint and
Greenlande
August 21, several
r New 4,981.5 -- 4,649.34 NA -- 15 years No Yes
2020 liability
Energy Co.,
guarantee
Ltd.
Guangdong January 30, 14,000 January 1, 14,000 Joint and NA -- 5 years No Yes
89
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Wellkey 2021 2021 several
Electric liability
Material guarantee
Co., Ltd.
Guangdong
Joint and
Wellkey
January 30, June 25, several
Electric 2,000 2,000 NA -- 1 year No Yes
2021 2021 liability
Material
guarantee
Co., Ltd.
Liaoning
Joint and
Donggang
January 30, December several
Magnetic 25,000 14,800 NA -- 3 years No Yes
2021 21, 2020 liability
Wire Co.,
guarantee
Ltd.
Anhui
Joint and
Wellkey
January 30, June 21, several
Electric 4,000 3,000 NA -- 1 year No Yes
2021 2021 liability
Material
guarantee
Co., Ltd.
Anhui
Joint and
Wellkey
January 30, May 25, several
Electric 3,000 3,000 NA -- 1 year No Yes
2021 2021 liability
Material
guarantee
Co., Ltd.
Anhui
Joint and
Wellkey
January 30, June 28, several
Electric 2,000 2,000 NA -- 1 year No Yes
2021 2021 liability
Material
guarantee
Co., Ltd.
Guangdong
Wellkey
January 30,
Electric 18,000 -- -- -- -- -- -- -- --
2021
Material
Co., Ltd.
Anhui
Wellkey
January 30,
Electric 3,000 -- -- -- -- -- -- -- --
2021
Material
Co., Ltd.
Buyer's
April 23,
credit 22,745.67 -- -- -- -- -- -- -- --
2021
business
Total approved line for Total actual amount of
external guarantee external guarantee
155,981.5 74,747.28
during the reporting during the reporting
period (A1) period (A2)
Total approved line for Total actual balance of
external guarantee at the external guarantee at the
155,981.5 74,747.28
end of the reporting end of the reporting
period (A3) period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosure Counter Guarante
Guaranteed Line of Actual Actual Guarantee Security (if Term of Complete
date of the - e for a
party guarantee occurrence guarantee type any) guarantee d or not
guarantee guarant related
90
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
line date amount ees (if party or
announcem any) not
ent
Zhejiang
Shangfeng Joint and
Special April 23, November several
22,000 15,501.89 NA -- 2 years No Yes
Blower 2021 13, 2020 liability
Industrial guarantee
Co., Ltd.
Zhejiang
Shangfeng Joint and
Special April 23, December several
15,350 14,687.7 NA -- 2 years No Yes
Blower 2021 29, 2020 liability
Industrial guarantee
Co., Ltd.
Zhejiang
Shangfeng Joint and
Special April 23, October 25, several
9,100 3,883.91 NA -- 2 years No Yes
Blower 2021 2019 liability
Industrial guarantee
Co., Ltd.
Zhejiang
Shangfeng Joint and
Special April 23, December several
30,000 5,127.41 NA -- 1 year No Yes
Blower 2021 10, 2021 liability
Industrial guarantee
Co., Ltd.
Zhejiang
Shangfeng Joint and
Special April 23, August 18, several
11,000 1,579 NA -- 1 year No Yes
Blower 2021 2020 liability
Industrial guarantee
Co., Ltd.
Zhejiang
Shangfeng Joint and
Special April 23, April 23, several
10,000 10,000 NA -- 1 year No Yes
Blower 2021 2021 liability
Industrial guarantee
Co., Ltd.
Zhejiang
Shangfeng Joint and
Special April 23, March 22, several
7,500 0 NA -- 1 year No Yes
Blower 2021 2021 liability
Industrial guarantee
Co., Ltd.
Zhejiang
Shangfeng Joint and
Special April 23, November several
15,000 15,000 NA -- 1 year No Yes
Blower 2021 16, 2021 liability
Industrial guarantee
Co., Ltd.
Guangdong Joint and
April 23, June 17,
Infore 5,000 65.33 several NA -- 1 year No Yes
2021 2021
Technology liability
91
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Co., Ltd. guarantee
Guangdong Joint and
Infore April 23, March 1, several
4,000 256.04 NA -- 3 years No Yes
Technology 2021 2021 liability
Co., Ltd. guarantee
Guangdong Joint and
Infore April 23, September several
3,000 51.44 NA -- 1 year No Yes
Technology 2021 3, 2021 liability
Co., Ltd. guarantee
Guangdong Joint and
Infore December December several
15,000 9,423.05 NA -- 5 years No Yes
Technology 26, 2017 26, 2018 liability
Co., Ltd. guarantee
Shenzhen
Greenlande
Joint and
r
April 20, June 15, several
Environme 13,000 12,750 NA -- 15 years No Yes
2020 2020 liability
ntal
guarantee
Protection
Co., Ltd.
Shenzhen
Greenlande
Joint and
r
August 10, December several
Environme 25,000 15,840 NA -- 10 years No Yes
2019 27, 2019 liability
ntal
guarantee
Protection
Co., Ltd.
Shenzhen
Greenlande
Joint and
r
February 2, August 25, several
Environme 13,000 6,175 NA -- 8 years No Yes
2016 2016 liability
ntal
guarantee
Protection
Co., Ltd.
Shenzhen
Greenlande
Joint and
r
October 27, November several
Environme 12,000 5,120 NA -- 8 years No Yes
2016 15, 2016 liability
ntal
guarantee
Protection
Co., Ltd.
Shenzhen
Greenlande
Joint and
r
August 21, January 21, several
Environme 28,000 28,000 NA -- 10 years No Yes
2020 2021 liability
ntal
guarantee
Protection
Co., Ltd.
Maoming
Infore Joint and
Environme December March 20, several
15,000 11,421.05 NA -- 15 years No Yes
nt Water 26, 2017 2018 liability
Treatment guarantee
Technology
92
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Co., Ltd.
Changsha
Zoomlion
Joint and
Changgao
October 24, March 25, several
Environme 10,000 7,000 NA -- 5 years No Yes
2019 2020 liability
ntal
guarantee
Industry
Co., Ltd.
Changde
Joint and
Zelian
April 23, May 26, several
Environme 12,000 9,600 NA -- 15 years No Yes
2021 2021 liability
ntal Service
guarantee
Co., Ltd.
Lu'an
Zhongfeng Joint and
Urban April 23, June 08, several
8,000 7,800 NA -- 13 years No Yes
Environme 2021 2021 liability
ntal Service guarantee
Co., Ltd.
Tongshan
Tongda Joint and
Water April 25, February several
6,000 1,000 NA -- 18 years No Yes
Treatment 2020 01, 2021 liability
Technology guarantee
Co., Ltd.
Xiantao
Yinghe Joint and
Environme August 21, January 20, several
30,100 9,300 NA -- 15 years No Yes
ntal 2020 2021 liability
Protection guarantee
Co., Ltd.
Changsha
Zhongbiao Joint and
Environme April 23, September several
5,000 3,408.12 NA -- 1 year No Yes
ntal 2021 11, 2021 liability
Industry guarantee
Co., Ltd.
Changde
Zelian
April 23,
Environme 60 -- -- -- -- -- -- -- --
2021
ntal Service
Co., Ltd.
Guangdong
Infore April 23,
700 -- -- -- -- -- -- -- --
Technology 2021
Co., Ltd.
Other
April 23,
holding 5,450 -- -- -- -- -- -- -- --
2021
subsidiaries
Total approved Total actual guarantee
guarantee line for amount for subsidiaries
219,260 192,989.95
subsidiaries during the during the reporting
reporting period (B1) period (B2)
Total approved 330,260 Total actual guarantee 192,989.95
93
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
guarantee line for balance for subsidiaries
subsidiaries at the end of at the end of the
the reporting period (B3) reporting period (B4)
Guarantees between subsidiaries
Disclosure
Counter Guarante
date of the
Actual Actual - e for a
Guaranteed guarantee Line of Guarantee Security (if Term of Complete
occurrence guarantee guarant related
party line guarantee type any) guarantee d or not
date amount ees (if party or
announcem
any) not
ent
Total approved Total actual guarantee
guarantee line for amount for subsidiaries
0 0
subsidiaries during the during the reporting
reporting period (C1) period (C2)
Total approved Total actual guarantee
guarantee line for balance for subsidiaries
0 0
subsidiaries at the end of at the end of the
the reporting period (C3) reporting period (C4)
Total guarantee amount (total of the three kinds above)
Total actual guarantee
Total approved guarantee line
amount during the
during the reporting period 375,241.5 267,737.23
reporting period
(A1+B1+C1)
(A2+B2+C2)
Total actual guarantee
Total approved guarantee line at
balance at the end of the
the end of the reporting period 486,241.5 267,737.23
reporting period
(A3+B3+C3)
(A4+B4+C4)
Proportion of the total actual guarantee amount
15.84%
(A4+B4+C4) in the Company's net assets
Of which:
Balance of debt guarantees provided directly or
indirectly for the guaranteed party with a liability- 173,089.95
to-asset ratio over 70% (E)
Total amount of the three kinds of guarantees
173,089.95
above (D+E+F)
Description of composite guarantees
3. Entrusted cash management
(1) Entrusted wealth management
√ Applicable □ Not Applicable
Overview of entrusted wealth management during the reporting period
Unit: RMB 10,000
Accrued impairment
amount for
Unrecovered
Type Funding source Entrustment amount Undue amount unrecovered
overdue amount
overdue wealth
management
Bank’s wealth Own funds 217,895 0 0 0
management
94
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
product
Total 217,895 0 0 0
High-risk entrusted wealth management with a significant single amount or low security and low liquidity
□ Applicable √ Not Applicable
Entrusted wealth management with expected irrecoverable principal or other circumstances that may lead to impairment
□ Applicable √ Not Applicable
(2) Entrusted loans
□ Applicable √ Not Applicable
No such cases in the reporting period.
4. Other significant contracts
□ Applicable √ Not Applicable
No such cases in the reporting period.
XVI. Other Significant Events
□ Applicable √ Not Applicable
No such cases in the reporting period.
XVII. Other Significant Events of Subsidiaries
√ Applicable □ Not Applicable
On January 29, 2021, and February 24, 2021, the Company held the 11th Extraordinary Meeting of the ninth Board of Directors
and the 1st Extraordinary General Meeting of 2021 to deliberate and approve the Proposal on Public Listing Transfer of 51% of the
Controlling Right of Subsidiary. It was approved that the Company would transfer 51% of the controlling right of Foshan Yingt ong to
the transferee, Guangdong Yinghe Corporate Management Co., Ltd. (hereinafter referred to as Guangdong Yinghe). The Company
had completed the registration of the public listing transfer of 51% equity interest in Foshan Yingtong, after which the Company held
49% equity interest in Foshan Yingtong. During the reporting period, the Company had received RMB 131.9 million of the
transaction price paid by Guangdong Yinghe, and the remaining RMB 123.1 million is to be paid as per the transfer agreement. For
more information, please refer to announcements published on November 21, 2020, January 30, 2021, February 25, 2021, and March
17, 2021 on the media of information disclosure specified by the Company, Cninfo (www.cninfo.com.cn).
95
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part VII Share Changes and Shareholder Information
I. Share Changes
1. Share changes
Unit: Share
Before Increase/decrease in the current period (+/-) After
Shares as
Shares as
dividend
dividend
New converted
Quantity Ratio converted Others Sub-total Quantity Ratio
issues from
from
capital
profit
reserves
- -
1,158,356, 1,139,599
I. Restricted shares 36.62% 0 0 0 18,757,32 18,757,32 35.84%
644 ,318
6 6
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal
0 0.00% 0 0 0 0 0 0 0.00%
person shares
- -
1,158,356, 1,139,599
3. Other domestic shares 36.62% 0 0 0 18,757,32 18,757,32 35.84%
644 ,318
6 6
Including: Domestic 1,137,761, 1,137,761
35.97% 0 0 0 0 0 35.78%
legal person shares 778 ,778
- -
Domestic natural 20,594,86
0.65% 0 0 0 18,757,32 18,757,32 1,837,540 0.06%
person shares 6
6 6
4. Foreign-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
Including: Foreign legal
0 0.00% 0 0 0 0 0 0 0.00%
person share
Foreign natural
0 0.00% 0 0 0 0 0 0 0.00%
person share
2,004,705, 16,409,60 18,757,32 35,166,93 2,039,872
II. Unrestricted Shares 63.38% 0 0 64.16%
502 5 6 1 ,433
1. RMB-denominated 2,004,705, 16,409,60 18,757,32 35,166,93 2,039,872
63.38% 0 0 64.16%
ordinary shares 502 5 6 1 ,433
2. Domestically listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
3,163,062, 16,409,60 16,409,60 3,179,471
III. Total number of shares 100.00% 0 0 0 100.00%
146 5 5 ,751
Reasons for share changes
√ Applicable □ Not Applicable
1. On January 7, 2021, the Company disclosed the Reminder on Lifting Trading Restrictions on Restricted Shares in the Private
Placement. In 2017, the Company issued 73,856,975 restricted shares to 9 subscribers through private placement, with lock-up
periods of 12 months and 36 months, respectively. On January 3, 2018, the shares issue via the private placement were listed on the
96
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Shenzhen Stock Exchange (SZSE). The 18,757,326 shares subscribed by He Jianfeng and Yu Changguang were not negotiable
within 36 months upon completion of issuance. On January 8, 2021, the 18,757,326 restricted shares issued via the private placement
were lifted from trading restrictions and available for listing and circulation.
2. On March 11, 2021, the 2nd exercise schedule of the 2nd stock option incentive plan was closed. The total of stock options
exercised by 46 incentive subjects was 18,200. The number of non-restricted shares increased by 18,200. Therefore, the Company's
total share capital increased from 3,163,062,146 shares to 3,163,080,346 shares.
3. In the 2nd eligible exercise schedule of the 3rd stock option incentive plan, the total of exercised stock options was 16,384,380
(as of 31 December 2021). The number of non-restricted shares increased by 16,384,380. Therefore, the Company's total share
capital increased from 3,163,080,346 shares to 3,179,464,726 shares.
4. On January 5, 2022, the Company disclosed the Announcement on Results of Conversion of Convertible Bonds and Changes
in Share Capita l in the 4th Quarter of 2021. As of December 31, 2021, a total amount of 7,025 A shares were converted from the
"Infore Convertible Bonds" issued by the Company. The number of non-restricted shares increased by 7,025. Therefore, the
Company's total share capital increased from 3,179,464,726 shares to 3,179,471,751 shares.
Approval of changes in share capital
√ Applicable □ Not Applicable
1. On April 23, 2020, the Company convened the 4th Meeting of the 9th Board of Directors. Upon discussion, the Meeting
approved the "Proposal on Matters Related to the Exercise in the 2nd Exercise Schedule of the 2nd Stock Option Incentive Plan ". A
total of 46 incentive objects of the 2nd Stock Option Incentive Plan were deemed fit to exercise their 3,495,000 stock options
voluntarily in the 2nd exercise window before March 11, 2021.
2. On April 22, 2021, the Company convened the 13th Meeting of the ninth Board of Directors. Upon discussion, the meeting
approved the Proposal on Matters Related to the Exercise in the 2nd Exercise Schedule of the 3rd Stock Option Incentive Plan. A
total of 231 incentive subjects of the 3rd stock option incentive plan were deemed fit to exercise their 17,814,000 stock options
voluntarily in the 2nd exercise schedule before November 25, 2022.
3. With the approval granted by the CSRC under Document ZH.J.X.K [2020], the Company publicly issued 14,761,896
convertible corporate bonds on November 4, 2020, each with a par value of RMB 100 and the total issued amount is RMB
1,476,189,600. Approved by the SZSE, the Company's convertible corporate bonds of RMB 1,476,189,600 have been listed for
trading on the SZSE since December 2, 2020. The Infore Convertible Bonds in this offering have been convertible into the
Company's shares since May 10, 2021.
Transfer of shares
√ Applicable □ Not Applicable
During the reporting period, China Securities Depository and Clearing (Shenzhen) Corporation Limited handled the share
registration procedures for 18,200 exercised stock options in the 2nd stock option incentive plan, 16,384,380 exercised stock options
in the 3rd stock option incentive plan and 7,025 shares converted from the convertible corporate bonds.
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to the Co mpany’s
ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively
□ Applicable √ Not Applicable
Other information that the Company deems necessary or required to be disclosed by that the securities regulatory authorities
□ Applicable √ Not Applicable
2. Changes in restricted shares
√ Applicable □ Not Applicable
97
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Unit: Share
Number of shares
Increase of Decrease of Number of shares
Name of held at the Reasons for Date of lifting
restricted shares restricted shares held at the end of
shareholders beginning of the trading restriction trading restriction
during the period during the period the period
period
Ningbo Infore Restricted shares
Asset Management 1,017,997,382 0 0 1,017,997,382 in private July 4, 2022
Co., Ltd. placement
Ningbo Yingtai
Investment Restricted shares
Partnership 40,913,514 0 0 40,913,514 in a private January 4, 2022
(Limited placement
Partnership)
Ningbo Zhongfeng
Investment Restricted shares
Partnership 40,141,033 0 0 40,141,033 in a private January 4, 2022
(Limited placement
Partnership)
Ningbo Liantai
Investment Restricted shares
Partnership 38,709,849 0 0 38,709,849 in a private January 4, 2022
(Limited placement
Partnership)
Restricted shares
He Jianfeng 11,723,329 0 11,723,329 0 in a private January 8, 2021
placement
Restricted shares
She Changguang 7,033,997 0 7,033,997 0 in a private January 8, 2021
placement
25% of the total
Locked-up shares
shareholdings are
Others 1,837,540 0 0 1,837,540 of senior
unlocked
management
annually
Total 1,158,356,644 0 18,757,326 1,139,599,318 -- --
II. Issuance and Listing of Securities
1. Securities (exclusive of preference shares) issued in the reporting period
□ Applicable √ Not Applicable
2. Changes in total shares, shareholder structure and asset and liability structures
√ Applicable □ Not Applicable
1. On November 8, 2017, the Company received the Approval of Private Placement of Infore Environment Technology Group
Co., Ltd.(Document ZH.J.X.K [2017] No.1938) from the CSRC. On December 22, 2017, it received the Confirmation Letter of
Acceptance of Share Registration Application from the CSDC Shenzhen. In this private placement, the Company non-publicly issued
73,856,975 floating shares with trading restrictions (lock-up period of 12 months and 36 months respectively) to 9 subscribers. The
shares issued were listed on the SZSE on January 3, 2018.
On January 7, 2021, the Company disclosed the Reminder on Lifting Trading Restrictions on Restricted Shares in the Private
Placement. The 18,757,326 shares subscribed by He Jianfeng and Yu Changguang were not negotiable within 36 months upo n
completion of issuance. On January 8, 2021, the 18,757,326 restricted shares issued in the private placement were lifted from trading
restrictions and available for listing and circulation.
98
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
2. On April 23, 2020, the Company convened the 4th Meeting of the ninth Board of Directors. Upon discussion, the meeting
approved the Proposal on Matters Related to the Exercise in the 2nd Exercise Schedule of the 2nd Stock Option Incentive Plan". A
total of 46 incentive subjects of the 2nd stock option incentive plan were deemed fit to exercise their 3,495,000 stock options
voluntarily in the 2nd exercise schedule before March 21, 2021.
On March 11, 2021, the 2nd exercise schedule of the 2nd stock option incentive plan was closed. The total of stock options
exercised by 46 incentive subjects was 18,200. The number of non-restricted shares increased by 18,200. Therefore, the Company's
total share capital increased from 3,163,062,146 shares to 3,163,080,346 shares.
3. On April 22, 2021, the Company convened the 13th Meet ing of the ninth Board of Directors. Upon discussion, the Meeting
approved the Proposal on Matters Related to the Exercise in the 2nd Exercise Schedule of the 3rd Stock Option Incentive Plan. A
total of 231 incentive subjects of the 3rd stock option incent ive plan were deemed fit to exercise their 17,814,000 stock options
voluntarily in the 2nd exercise schedule before November 25, 2022.
In the 2nd eligible exercise schedule of the 3rd stock option incentive plan, the total of exercised stock options was 16,384,380
(as of December 31, 2021). The number of non-restricted shares increased by 16,384,380. Therefore, the Company's total share
capital increased from 3,163,080,346 shares to 3,179,464,726 shares.
4. With the approval granted by the CSRC under Docume nt ZH.J.X.K [2020] No.2219, the company publicly issued 14,761,896
convertible corporate bonds on November 4, 2020, each with a par value of RMB 100, and the total issued amount is RMB
1,476,189,600. Approved by the SZSE, the Company's convertible corporate bonds of RMB 1,476,189,600 have been listed for
trading on the SZSE since December 2, 2020. The Infore Convertible Bonds in this offering have been convertible into the
Company's shares since May 10, 2021.
On January 5, 2022, the Company disclosed the Announcement on Results of Conversion of Convertible Bonds and Changes in
Share Capital in the 4th Quarter of 2021. As of December 31, 2021, a total amount of 7,025 A shares were converted from the "Infore
Convertible Bonds" issued by the Company. The number of non-restricted shares increased by 7,025. Therefore, the Company's total
share capital increased from 3,179,464,726 shares to 3,179,471,751 shares.
3. Existing internal employee shares
□ Applicable √ Not Applicable
III. Controlling Shareholders and De Facto Controller
1. Shareholders and their shareholdings
Unit: Share
Preference
shareholders
Preference
Shareholders at with resumed
Shareholders of shareholders with
the end of the voting power at
common shares resumed voting
previous month the end of the
at the end of 31,113 45,043 power at the end of 0 0
prior to the previous month
the reporting the reporting
disclosure date of prior to the
period period (if any) (see
this report disclosure date of
Note 8)
this Report (if
any) (see Note 8)
Shareholders with over 5% of total shares or top 10 shareholders
Sharehold Sharehold Increase/ Shares pledged, tagged or frozen
Restricted Unrestricte
Name of Nature of ing ings at decrease shares d shares
shareholders shareholders proportio the end of during Status Quantity
held held
n the the
99
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
reporting reporting
period period
Ningbo Infore Domestic non-
1,017,997 1,017,997
Asset Management state-owned legal 32.02% 0 0 Pledged 610,798,429
,382 ,382
Co., Ltd. person
Zoomlion Heavy
Domestic non-
Industry Science 399,214,6 399,214,65
state-owned legal 12.56% 0 0 Pledged 0
and Technology 59 9
person
Co., Ltd.
Domestic non-
Infore Group Co., 359,609,7 359,609,75
state-owned legal 11.31% 0 0 Pledged 200,000,000
Ltd. 56 6
person
Hongchuang
(Shenzhen) Domestic non-
310,423,8 310,423,81
Investment Center state-owned legal 9.76% 0 0 -- --
13 3
(Limited person
Partnership)
Domestic natural 63,514,69
He Jianfeng 2.00% 0 0 63,514,690 Pledged 32,941,724
person 0
Zara Green Hong Foreign legal 54,778,33
1.72% 0 0 54,778,335 -- --
Kong Limited persons 5
Ningbo Yingtai
Investment Domestic non-
40,913,51 40,913,51
Partnership state-owned legal 1.29% 0 0 -- --
4 4
(Limited person
Partnership)
Ningbo Zhongfeng
Investment Domestic non-
40,141,03 40,141,03
Partnership state-owned legal 1.26% 0 0 -- --
3 3
(Limited person
Partnership)
Ningbo Liantai
Investment Domestic non-
38,709,84 38,709,84
Partnership state-owned legal 1.22% 0 0 -- --
9 9
(Limited person
Partnership)
Domestic natural 31,018,00
Chen Liyuan 0.98% 0 0 31,018,000 -- --
person 0
Strategic investor/general legal person
becoming a top 10 shareholder in a Not applicable.
rights issue (if any) (see note 3)
Ningbo Infore Asset Management Co., Ltd. and Infore Group Co., Ltd. share the same de facto
Related or acting-in-concert parties controller — He Jianfeng, and they act in concert. Apart from that, the Company is not aware
among the shareholders above of any related or acting-in-concert parties (as defined in the Methods for the Acquisition and
Management of Listed Companies) among the above other shareholders.
Shareholders above
entrusting/entrusted with or waiving Not applicable.
voting rights
Top 10 shareholders with repurchase There are 58,976,234 corporate shares in the Company's account for security repurchase,
account (if any) (see note 10) occupying for about 1.85% of the total shares.
Shareholding of top 10 unrestricted shareholders
Unrestricted shares at the end of the reporting Type of shares
Name of shareholders
period Type of shares Quantity
Zoomlion Heavy Industry Science and RMB-dominated
399,214,659 399,214,659
Technology Co., Ltd. common shares
RMB-dominated
Infore Group Co., Ltd. 359,609,756 359,609,756
common shares
Hongchuang (Shenzhen) Investment 310,423,813 RMB-dominated 310,423,813
100
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Center (Limited Partnership) common shares
RMB-dominated
He Jianfeng 63,514,690 63,514,690
common shares
RMB-dominated
Zara Green Hong Kong Limited 54,778,335 54,778,335
common shares
RMB-dominated
Chen Liyuan 31,018,000 31,018,000
common shares
Hong Kong Securities Clearing RMB-dominated
29,123,470 29,123,470
Company Ltd. common shares
Guangdong Hengjian Investment RMB-dominated
28,059,147 28,059,147
Holding Co., Ltd. common shares
Bank of China Limited - China AMC
RMB-dominated
Industrial Hybrid Securities 24,953,514 24,953,514
common shares
Investment Fund
RMB-dominated
Ningbo Chaoyi Commodity Co., Ltd. 18,705,329 18,705,329
common shares
Related or acting-in-concert parties
among top 10 unrestricted public He Jianfeng is the de facto controller of Infore Group Co., Ltd. Apart from that, the Co mpany
shareholders, as well as between top is not aware of any related or acting-in-concert parties (as defined in the Methods for the
10 unrestricted public shareholders Acquisition and Management of Listed Companies) among the other shareholders.
and top 10 shareholders
Top 10 common shareholders involved
in securities margin trading (if any) N/A
(see note 4)
Indicate whether any of the top 10 common shareholders or the top 10 unrestricted common shareholders of the Company conducte d
any promissory repurchase during the reporting period
□ Yes √ No
No such case during the reporting period.
2. Controlling shareholder
Nature of the controlling shareholder: Natural person
Type of the controlling shareholder: Legal person
Legal
Name of the controlling
representative/person Date of incorporation Organization code Principal business activities
shareholder
-in-charge
Asset management,
industrial investment,
investment management.
(The Company shall not
engage in financial
businesses such as
absorbing deposits,
financing guarantee, wealth
Ningbo Infore Asset
Wei Ting May 2, 2017 91330206MA290L5J3L management service, and
Management Co., Ltd.
raising/financing funds
from the public without the
approval of regulatory
authorities such as financial
regulators.) (Business
activities subject to
approval in accordance
with laws shall not be
101
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
carried out without
approval by relevant
authorities.)
Other domestically and
overseas listed companies as
controlling shareholders and Not applicable.
equity participants during the
reporting period
Changes in controlling shareholders during the reporting period
□ Applicable √ Not Applicable
During the reporting period, there was no change in controlling shareholders of the Company.
3. De facto controller and acting-in-concert parties
Nature of the de facto controller: Domestic natural person
Type of the de facto controller: Natural person
Relationship with the de Residency in other countries or regions
Name of the de facto controller: Nationality
facto controller or not
The de facto controller
He Jianfeng China Yes
himself
Main occupation and position Chairman of the Board and President of Infore Group Co., Ltd.
Controlling interests in other domestically and
Not applicable.
overseas listed companies in the past 10 years
Change in de facto controller during the reporting period
□ Applicable √ Not Applicable
During the reporting period, there was no change in de facto controller of the Company.
Ownership and control relationship between the de facto controller and the Company
The de facto controller controls the Company via trust or other asset management arrangement
□ Applicable √ Not Applicable
102
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
4. The pledged shares of the company's controlling shareholder or largest shareholder and concerted actors
account for 80% of their total shareholdings
□ Applicable √ Not Applicable
5. Other institutional shareholders with a shareholding of more than 10%
√ Applicable □ Not Applicable
Legal
Name of institutional representative/ Date of Principal business or management
Registered capital
shareholder person-in- incorporation activities
charge
Development, production, and sales of
engineering machinery, agricultural
machinery, sanitation machinery, crane
trucks and exclusive chassis, fire
engines and exclusive chassis, aerial
work machines, emergency and rescue
equipment, mining machinery,
machinery in coal mines, material
transportation facilities, other
machinery, metal and non-metal
materials, and new high-tech products
of optical-electro-mechanical
integration and provision of leasing
and after-sale technical services. Sales
of building and decorative materials,
vehicles for engineering and metal
materials, chemical materials, and
chemical products (excluding
hazardous chemicals and monitoring
Zoomlion Heavy Industry
products). Sales of lubricant oil,
Science and Technology Zhan Chunxin August 31, 1999 RMB 8,666,612,984
lubricating grease and hydraulic oil
Co., Ltd.
(excluding hazardous chemicals).
Retail of refined oil products (operated
by licensed subsidiaries only).
Operation of commodity and
technology import and export
businesses. Investment in real estate
with self-owned assets (the company
shall not engage in national financial
regulation and financial credit
businesses such as absorbing deposits,
fund-raising and collection, entrusted
loans, and issuing notes and loans).
Sales of second-hand vehicles.
Disassembly and recovery of disused
machinery equipment. (Business
activities subject to approval in
accordance with laws shall not be
carried out without approval from
relevant authorities.)
Investment in various industries,
Infore Group Co., Ltd. He Jianfeng April 19, 2002 RMB 4,450,000,000 investment management, investment
consultation, and asset management.
103
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Enterprise management and enterprise
consulting services. Computer
information services and software
services. Film production and planning
(based on validated licenses).
Advertising planning and production.
Appraisal and consultancy services of
artwork (excluding ivory and ivory
products) and collectibles. Planning of
culture and art exhibitions. Sales of
maternal and baby products and
clothing. Supply and marketing of
domestic business and goods except
the above items. Business information
consulting services. Import and export
of commodities or technologies
(excluding the import and export of
commodities and technologies that are
prohibited by the state or involve
administrative review and approval).
R&D, manufacturing, sales and leasing
of sanitation equipment, robots, new
energy vehicles, and environmental
monitoring equipment. Cleaning,
collection, recycling, transportation,
and treatment services of urban
domestic waste. Undertaking
environmental engineering and water
pollution control projects. R&D,
manufacturing and sales of ventilators,
and air-cooling, water-cooling and air
conditioning equipment. R&D,
manufacturing, and sales of new
materials, equipment, and products.
(Production and manufacturing
projects shall be operated by the
company's subsidiaries) (Business
activities subject to approval in
accordance with laws shall not be
carried out without approval from
relevant authorities.)
6. Limitations on shareholding reduction by the Company’s controlling shareholder, de facto controller,
reorganizer party and other commitment makers
□ Applicable √ Not Applicable
IV. Repurchase of Shares during the Reporting Period
The progress of share repurchase
√ Applicable □ Not Applicable
Value of shares Repurchased Repurchased
Shares to be Proportion to Repurchase Repurchase shares as a
Disclosure date to be shares
repurchased the total shares period purpose percentage of
repurchased currently
the underlying
104
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
shares included
in the stock
option
incentive plan
(if any)
Exercise of the
Company's
25,000,000 - RMB stock option
April 13, 2020
April 14, 2020 50,000,000 0.79%-1.57% 200,000,000 - incentive 7,634,138 0.00%
- April 8, 2021
shares 400,000,000 plan/employee
stock
ownership plan
Exercise of the
Company's
22,730,000 - RMB stock option
April 8, 2021 -
April 9, 2021 45,450,000 0.71% - 1.43% 200,000,000 - incentive 51,342,096 0.00%
April 7, 2022
shares 400,000,000 plan/employee
stock
ownership plan
Progress of decreasing repurchased shares by auction
□ Applicable √ Not Applicable
105
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part VIII Information on Preference Shares
□ Applicable √ Not Applicable
During the reporting period, the Company had no preference shares.
106
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Part IX Information on Bonds
√ Applicable □ Not Applicable
I. Enterprise Bond
□ Applicable √ Not Applicable
During the reporting period, the Company had no enterprise bond.
II. Corporate Bond
□ Applicable √ Not Applicable
During the reporting period, the Company had no corporate bond.
III. Debt Financing Instrume nts of Non-financial Enterprises
□ Applicable √ Not Applicable
During the reporting period, the Company had no debt financing instruments of non-financial enterprises
IV. Convertible Corporate Bonds
√ Applicable □ Not Applicable
1. Previous adjustments of the conversion price
With the approval granted by the China Securities Regulatory Commission under Document ZH.J.X.K. [2020] No. 2219, the
company publicly issued 14,761,896 convertible corporate bonds on November 4, 2020, each with a par value of RMB 100, and the
total issued amount is RMB 1,476,189,600. The initial conversion price of this tranche of convertible bonds is RMB 8.31 per share.
In case of distribution of bonus shares, increase of share capital through conversion, issuance of new shares (excluding the increased
share capital due to the conversion of convertible corporate bonds issued this time), allotment of shares and distribution of cash
dividends, the conversion price will be adjusted accordingly pursuant to relevant laws and regulations.
On July 8, 2021, the distribution of the company's equity interests in 2020 was completed. In accordance with the issuance te rms
of the Prospectus for Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co., Ltd. and the
relevant regulations of China Securities Regulatory Commission on the issuance of convertible bonds, the conversion price of "Infore
Convertible Bonds" was adjusted from the original RMB 8.31 per share to RMB 8.19 per share since July 8, 2021. The adjusted
conversion price will take effect on July 8, 2021.
2. Information on cumulative conversion of bonds into shares
√ Applicable □ Not Applicable
Abbreviated Commencem Total issued Total issued Accumulated Accumulated The Amount not Proportion of
name of ent and end number amount share share proportion of yet converted the amount
107
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
convertible date of share (sheet) conversion conversion the number into shares not converted
bond conversion amount number of shares RMB) into shares to
(RMB) (share) converted to the total
the total issued
issued shares amount
of the
Company
before the
commenceme
nt date of the
conversion
Infore Enviro
1,476,189,60 1,476,131,30
Convertible May 10, 2021 14,761,896 58,300.00 7,025 0.00% 100.00%
0.00 0.00
Bond
3. Information on top 10 convertible bond holders
Unit: Share
Number of Amount of Proportion of
Nature of
convertible bonds convertible bonds convertible
convertibl
No. Name of convertible bond holders held at the end of held at the end of bonds held at
e bond
the reporting the reporting the end of the
holders
period (sheet) period (RMB) reporting period
Industrial and Commercial Bank of China Co., Ltd --
1 Others 1,032,235 103,223,500.00 6.99%
CUAM Convertible Bond Securities Investment Fund
Agricultural Bank of China Co., Ltd -- Bocom Schroeder
2 Regular Payment Double Interest Balanced Hybrid Others 557,457 55,745,700.00 3.78%
Securities Investment Fund
Industrial and Commercial Bank of China Co., Ltd -- GF
3 Others 538,456 53,845,600.00 3.65%
Convertible Bond Initiated Securities Investment Fund
Renmin stable and double-benefit fixed-income pension
4 product -- Industrial and Commercial Bank of China Co., Others 470,001 47,000,100.00 3.18%
Ltd.
Industrial and Commercial Bank of China Co., Ltd --
5 Aegon-industrial Hengyi Bond Securities Investment Others 447,180 44,718,000.00 3.03%
Fund
Foreign
Northwest Investment Management (Hong Kong) Co.,
6 legal 409,186 40,918,600.00 2.77%
Ltd. -- Northwest Feilong Fund Co., Ltd.
persons
Fullgoal Fumin Fixed-Income Pension Product -- China
7 Others 323,482 32,348,200.00 2.19%
Construction Bank Co., Ltd
Industrial and Commercial Bank of China Co., Ltd --
8 Others 295,852 29,585,200.00 2.00%
CUAM double-Benefit bond securities investment fund
Yinhua Kunli No.2 fixed income pension product --
9 Others 239,028 23,902,800.00 1.62%
CITIC Bank Co., Ltd.
Fullgoal Fuyi aggressive fixed-income pension product --
10 Others 221,390 22,139,000.00 1.50%
Industrial and Commercial Bank of China Co., Ltd
4. Information on significant changes of the profitability, asset and credit standing of the guarantor
□ Applicable √ Not Applicable
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5. Change on the Company's liabilities and credit standing, and cash arrangements for debt repayment in
future years at the end of the reporting period
On June 21, 2021, China Chengxin International Credit Rating Co., Ltd. issued the Tracking Rating Report on the Public
Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co., Ltd. (2021) (X.P.W.H. [2021] Tracking
No.0853), maintaining the corporate credit rating of the company at AA +, maintaining the credit rating of Infore Convertible Bonds
at AA +, with a rating outlook as stable. For details, please refer to the Tracking Rating Report on Public Offering of Convertible
Corporate Bonds by the Company (2021) disclosed by the Company on June 23, 2021 on Cninfo (www.cninfo.com.cn).
The primary sources of funds for the Company to pay the principal and interest of the convertible bonds in the future are as
follows: (1) The Company seeks organic growth by strengthening financial management and increasing net cash inflow and net pr ofit
from operating activities; (2) The Company has good credit standing and a reasonable asset structure and can obtain financing fr om
banks and other channels to reasonably arrange for redemption funds.
V. During the Reporting Period, the Loss in the Scope of Consolidated Statements
Outstripped 10% of the Net Assets at the End of the Previous Year
□ Applicable √ Not Applicable
VI. Overdue Interest-Bearing Debts Other Than Bonds at the End of the Reporting Period
□ Applicable √ Not Applicable
VII. Violation of Rules and Regulations During the Reporting Period
□ Yes √ No
VIII. Main Accounting Data and Financial Indicators of the Company in Recent Two Years
as of the End of the Reporting Period
Unit: RMB 10,000
Change at the end of this
End of the current reporting
Item End of last year reporting period compared to
period
the end of prior year
Current ratio 1.7 1.51 12.58%
Liabilities-to-assets ratio 39.10% 42.64% -3.54%
Quick ratio 1.55 1.38 12.32%
YoY increase/decrease during
Current reporting period Prior year
the current reporting period
Net profit after deducting non-
53,272.62 143,221.9 -62.80%
recurring profit and loss
EBITDA/total liabilities 13.75% 17.45% -3.70%
Interest coverage ratio 5.84 11.8 -50.51%
Cash/interest coverage ratio 9.46 14.44 -34.49%
EBITDA/interest coverage ratio 9.15 14.91 -38.63%
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage ratio 100.00% 100.00% 0.00%
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Part X Financial Report
I. Audit Report
Type of audit opinions Standard unqualified opinion
Signing date of the auditor’s report April 29, 2022
Pan-China Certified Public Accountants LLP (Special General
Name of the auditor
Partnership)
No. of the auditor’s report PCCPA Auditor’s Report [2022] No. 5128
Names of certified public accountants Bian Shanshan, Pan Jianwu
Main body of the auditor's report
All shareholders of Infore Environment Technology Group Co., Ltd.:
Ⅰ. Audit Opinions
We have audited the attached financial statements of Infore Environment Technology Group Co., Ltd. (hereinafter referred to
as "the Company"), including the Consolidated and the Parent Company’s Balance Sheet as of December 31, 2021, the Consolidate d
and the Parent Company’s Income Statement, the Consolidated and the Parent Company’s Cash Flow Statement, Consolidated and
the Parent Company’s Statement of Changes in Owner's Equity and the Notes to Financial Statements of 2021.
In our opinion, the attached financial statements were prepared in accordance with the prov isions of the accounting standards
for business enterprises in all major aspects, and fairly reflected the Company's consolidated and the parent company's financial
position as of December 31, 2021, as well as the consolidated and the parent company's business results and cash flows in 2021.
Ⅱ. Basis for Forming the Audit Opinions
We conducted audit in accordance with the provisions of the Auditing Standards for the Chinese Certified Public Accountants
(CPA). The section "CPA's responsibility for audit of f inancial statements" in the audit report further provided for our responsibilities
under these accounting standards. According to the Code of Ethics for Chinese Certified Public Accountants, we are independent of
the Company and perform other duties in terms of professional ethics. We believe that the audit evidence we have obtained is
appropriate and sufficient to provide a basis for our audit opinion.
Ⅲ. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our 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 w hole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
(I) Revenue recognition
1. Description
Please refer to Notes III (XXVI) and V (II) 1 to the financial statements for details of relevant information disclosure.
The operating revenue of the Company mainly comes from the sales of environmental and sanitation machinery and
equipment, ventilator equipment and the environmental sanitation operation business. In 2021, the operating revenue of the Co mpany
was RMB 11,813,537,400, down 17.57% from the previous year.
The Company's sales of environmenta l and sanitation machinery and equipment and ventilator equipment fall into to the
performance of obligation to be fulfilled at a certain point in time, of which the income is recognized when the products are delivered
by the Company to the place agreed in the contract and are confirmed and accepted by the customer, and when the price has been
collected or the right to collect money has been obtained and the relevant economic benefits are very likely to flow in. The
Company’s sanitation operation business falls to the performance of obligation to be fulfilled within a certain period of time, of
which the income is recognized pursuant to the service assessment statement acknowledged by the labor recipient.
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As operating revenue is the key financial indicator of the Company, and the authenticity, accuracy and completeness of
revenue recognition have a significant impact on the financial statements of the Company, we identify revenue recognition as a key
audit matter.
2. Responsive audit procedures
For revenue recognition, our audit procedures mainly include:
(1) Understanding the key internal controls related to revenue recognition, evaluating the design of such controls to determine
whether they have been implemented, and testing the operational effectiveness of relevant internal controls;
(2) Checking the sales contracts signed between the Company and its customers, understanding the main contract terms or
conditions, and evaluating whether the revenue recognition policy conforms to the provisions of the Account ing Standards for
Business Enterprises;
(3) Implementing analysis procedures for operating revenue and gross profit margin based on months, products, customers or
projects, identifying potential major or abnormal fluctuations, and identifying the reasons for fluctuations;
(4) For the revenue from sales of environmental and sanitation machinery and equipment, ventilator equipment and other
products, checking the supporting documents related to revenue recognition by sampling method, including sales contract , sales
invoice, outbound delivery order, shipment order, customer receipt, etc. For the revenue from environmental sanitation operat ion
business, conducting a selective examination on the supporting documents related to revenue recognition, such as sales contract,
service assessment statement and supervision progress sheet;
(5) Implementing written confirmation procedures for key customers related to product sales and major customers related to
environmental sanitation operation business, and recognizing t he sales amount and current account balance of the current period and
the performance of contracts;
(6) Carrying out cut-off test on the operating revenue recognized before and after the balance sheet date to evaluate whether
the operating revenue is recognized in an appropriate period;
(7) Checking whether the information related to operating revenue has been properly presented in the financial statements.
(II) Impairment of accounts receivable and long-term receivables
1. Description
Please refer to Notes III (X) and V (I) 4, 10, 12 to the financial statements for details of relevant information disclosure.
As of December 31, 2021, the carrying amounts balance of accounts receivable of the Company was RMB 5,424,413,700, the
provision for bad debts was RMB 477,708,800, and the book value was RMB 4,946,705,000; The book balance of long-term
receivables (including those due within one year) was RMB 2,024,611,400, the provision for bad debts was RMB 149,338,400, and
the book value was RMB 1,757,164,400. The total carrying amounts of accounts receivable and long-term receivables (hereinafter
collectively referred to as receivables) was RMB 6,703,869,400.
According to the credit risk characteristics of various receivables, the management of the Company (hereinafter referred to as
the Management) measures its loss reserve in line with the amount equivalent to the expected credit loss in the whole duratio n based
on single receivables item or receivables portfolio. For receivables that measure expected credit losses on a single basis, the
Management estimates the expected cash flow in the light of comprehensive considerations of reasonable and based information
about past events, current conditions and prediction of future economic conditions, and determines the bad debt provision that should
be accrued accordingly; For receivables that measure expected credit losses on a collective basis, the Management divides the
portfolio according to the overdue days or aging, makes adjustments according to historical credit loss experience and forward-
looking estimates, and prepares a comparison table between the overdue days/aging of receivables and the expected credit loss rate,
so as to determine the provision for bad debts that should be accrued.
As the amount of receivables is significant and the impairment test of receivables involves major judgment of the Management,
we determine the impairment of receivables as a key audit matter.
2. Responsive audit procedures
For impairment of receivables, our audit procedures mainly include:
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(1) Understanding the key internal controls related to impairment of receivables, evaluating the design of these controls to
determine whether they have been implemented, and testing the operational effectiveness of relevant internal controls;
(2) Reviewing the subsequent actual write-off or reversal of receivables for which provision for bad debts has been made in
previous years to evaluate the accuracy of the Management's past forecasts;
(3) Reviewing the relevant considerations and objective evidence of the Management's credit risk assessment of receivables to
evaluate whether the Management properly identifies the credit risk characteristics of various receivables;
(4) For receivables that measure expected credit losses on a single basis, obta ining and checking the Management's forecast of
expected cash flow, evaluating the rationality of key assumptions used in the forecast and the accuracy of data, and checking with the
obtained external evidence;
(5) For receivables that measure expected credit losses on a collective basis, evaluating the rationality of the Management's
dividing the portfolio according to credit risk characteristics; evaluating the rationality of the comparison table between o verdue
days/aging of receivables and expected credit loss rate determined by the Management according to historical credit loss experience
and forward-looking estimation; testing the accuracy and completeness of data used by the Management (including overdue days,
aging of receivables, etc.) and the accuracy of the calculation of bad debt provision;
(6) Checking the post-period payment of receivables to evaluate the rationality of the Management's provision for bad debts of
receivables;
(7) Check whether information relating to impairment of receivables has been properly presented in the financial statements.
(III) Impairment of goodwill
1. Description
Please refer to Notes III (XX) and V (I) 21 to the financial statements for details of relevant information disclosure.
As of December 31, 2021, the original carrying amounts of goodwill of the Company was RMB 6,209,424,300, the
impairment reserve was RMB 233,232,300, and the carrying amounts was RMB 5,976,192,000, accounting for 21.09% of the total
assets.
When there are signs of impairment in the asset group or portfolio related to goodwill and at the end of each year, the
Management conducts impairment test on goodwill. The Management conducts impairment test on goodwill in combination with its
related asset groups or portfolio, and the recoverable amount of related asset groups or portfolio is calculated and determined in line
with the present value of estimated future cash flows. The key assumptions used in the impairment test include: the growth ra te of
revenue in the detailed forecast period, the growth rate of stable revenue, profit rate, pre-tax discount rate, etc.
As the amount of goodwill is significant and the goodwill impairment test involves major judgment of the Management, we
identify goodwill impairment as a key audit matter.
2. Responsive audit procedures
For impairment of goodwill, our audit procedures mainly include:
(1) Understanding the key internal controls related to impairment of goodwill, evaluating the design of these controls to
determine whether they have been implemented, and testing the operational effectiveness of relevant internal controls;
(2) Reviewing the Management's forecast of the present value of future cash flows in previous years and the actual operating
results to evaluate the accuracy of the Management's past calculation;
(3) Understanding and evaluating the competence, professionalism and objectivity of external valuation experts employed by
the management;
(4) Evaluating the competence, professionalism and objectivity of the experts we employ and the appropriateness of their work;
(5) Evaluating the rationality and consistency of the methods used by the Management in the impairment test;
(6) Evaluating the rationality of the key assumptions adopted by the Management in the impairment test, and reviewing
whether the relevant assumptions are consistent with the overall economic environment, industry conditions, operating conditions,
historical experience, operating plans, approved budgets, meeting minutes, and other assumptions related to the financial sta tements
used by the Management;
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(7) Reviewing the sensitivity analysis conducted by the management on key assumptions, evaluating the impact of changes in
key assumptions on impairment test results, and identifying possible signs of bias of the Management in the selec tion of key
assumptions;
(8) Testing the accuracy, completeness and relevance of the data used by the Management in the impairment test, and
reviewing the internal consistency of relevant information in the impairment test;
(9) Testing whether the Management's calculation of the present value of the estimated future cash flow is accurate;
(10) Checking whether information relating to impairment of goodwill has been properly presented in the financial statements.
(IV) Confirmation of performance compensation and indemnifying payment
1. Description
Please refer to Notes V (II) 8 and XIV (V) to the financial statements for details of relevant information disclosure.
As Greenlander Investment Holding Co., Ltd. and Zheng Weixian failed to fulfill the commitment on the business
performance of Shenzhen Greenlander Environmental Protection Co., Ltd. in 2016-2019, the Company confirmed the investment
income of RMB 163,460,600 for the performance compensation and indemnifying payment arising from such business performance
commitment, which accounted for 22.44% of the net profit attributable to the owner of the parent company in 2021.
In order to implement the collection of the performance compensation and indemnifying payment, the Compa ny filed a lawsuit
against Greenlander Investment Holding Co., Ltd. and Zheng Weixian. As of December 31, 2021, the Company has obtained
favorable judgment in the first instance. According to the judgment of the first instance, the public hearing of the se cond instance, the
relevant lawyers' case handling reports and lawyers' analysis reports, the Company believes that the court of second instance would
maintain the judgment of the first instance, and the economic benefits related to the performance compensation and indemnifying
payment are very likely to flow in, so the investment income is recognized in 2021. As the amount of performance compensation and
indemnifying payments is significant and involves major judgment of the Management, we determine the re cognition of performance
compensation and indemnifying payment as key audit matters.
2. Responsive audit procedures
For the recognition of performance compensation and indemnifying payment, our audit procedures mainly include:
(1) Obtaining relevant documents on equity acquisition and performance completion related to the recognition of performance
compensation and indemnifying payment, including Signing Equity Transfer Agreement, Cooperation Framework Agreement of
Shenzhen Greenlander Environmental Protection Co., Ltd. and Authentication Report on Completion of the Performance
Commitment of Shenzhen Greenlander Environmental Protection Co., Ltd., etc.;
(2) Obtaining litigation-related documents related to the recognition of performance compensation and indemnifying payment,
including the first-instance judgment of Foshan Intermediate People's Court of Guangdong Province, Greenlander Investment
Holding Co., Ltd. and Zheng Weixian's appellate petition to Guangdong Higher People's Court, the supplementary evidence
submitted by the appellant in the public hearing of the second instance, and the bill of defense of Infore Enviro;
(3) Obtaining the case handling report issued by Guangdong ETR Law Firm and the legal analysis report issued by
Guangdong Dafang Law Firm to understand the lawyer's analysis and judgment on the case;
(4) Obtaining relevant instructions issued by the Management on the recognition of performance compensation and
indemnifying payment;
(5) Reviewing the Management's assessment of the recoverability of the performance compensation and indemnifying
payment;
(6) Checking whether the information related to the recognition of performance compensation and indemnifying payment has
been properly presented in the financial statements.
Ⅳ. Other Information
The Management is responsible for other information. Other information include the information covered in the annual report,
excluding the financial statements and audit report.
Our audit opinions to the financial statements do not cover such other information, and will not give authentication
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conclusions in any form on such other information.
Our responsibility is to read such other information together with our audit of the financial statements. In this process, we
consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If we determine that there is a material misstatement in such other information based on the work we have performed, we
should report such material misstatement. In this regard, we have nothing to report.
V. The Management and Corporate Governance Team’s Responsibilities for the Financial Statements
The Management shall be responsible for the preparation and fair presentation of financial statements in accordance with the
Accounting Standards for Business Enterprises, as well as designing, implementing and maintaining the necessary internal control so
as to make the financial statements be free from any material misstatement caused by frauds and errors.
In the preparation of the financial statements, the Management was responsible for assessing the Company's ability to continue
as a going concern, disclosing the matters related to the going concern (if applicab le), and applying the going concern assumption
unless it either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The corporate governance team of the Company (hereinafter referred to as the Corporate Governance Team) is responsible for
supervising the financial reporting process of the Company.
VI. CPA’s Responsibility for Auditing Financial Statements
Our objective is to obtain reasonable assurance as to whether the entire financial statements are free from material
misstatement due to frauds or errors and to present an audit report containing audit opinions. Reasonable assurance is a high level of
assurance, but it does not guarantee that the audit performed in accordance with audit standards can always identify all material
misstatements. 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 made on the basis of these financial statements.
During the audit performed in accordance with the audit standards, we used professional judgment and maintained
professional suspicion. At the same time, we also performed the following tasks, including:
(I) Identifying and assessing risks of material misstatement of the financial statements due to fraud or errors, designing and
implementing audit procedures to address these risks, and obtaining adequate and appropriate audit evidence as a basis for expressing
audit opinions. Since frauds may involve collusion, falsification, intentional omission, misrepresentation or override of internal
controls, the risk of failing to identify a material misstatement due to frauds is higher than the risk of failing to identify a material
misstatement due to errors.
(II) Learning about the internal control related to the audit, in order to design appropriate audit procedures.
(III) Evaluating the appropriateness of the accounting policies selected by the Management and the reasonableness of the
accounting estimates and relevant disclosure made by the Management.
(IV) Drawing conclusions on the appropriateness of going concern assumptions used by the Management. Meanwhile, based
on the audit evidence acquired, conclude on the existence of material uncertainty related to matters or condition 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 the auditing standards to draw attention of the users of the statements in the audit report to the relevant disclosures in the
financial statements; If such disclosures are inadequate, we are required to express unqualified opinions. Our conclusions ar e based
on the information available as of the date of the audit report. However, future events or circumstances may impair the Company’s
ability to continue as a going concern.
(V) Evaluating the overall presentation, structure, and content of the financial statements, and evaluating whether the financial
statements fairly reflect the relevant transactions and events.
(VI) Obtaining sufficient and appropriate audit evidence on the financial information of entities or business activities in the
Company to express audit opinions on the financial statements. We are respons ible for guiding, supervising and executing audit of
the Company, and assume full responsibility for the audit opinions.
We communicated with the Corporate Governance Team on the planned audit scope, timing, and major audit findings,
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including communication on the internal control deficiencies that we identified during the audit.
We also provide those charged with the Corporate Governance Team with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and related safeguards (if applicable).
From the matters communicated with the Corporate Governance Team, 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 descr ibe 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 CPAS (Special General Partnership) Chinese Certified Public Accountant: Bian Shanshan
(Project Partner)
Hangzhou, China Chinese Certified Public Accountant: Pan Jianwu
April 29, 2022
II. Financial Statements
Currency unit of the statements in notes to the financial statements is RMB
1. Consolidated Balance Sheet
Compiled by: Infore Environment Technology Group Co., Ltd.
Unit: RMB
Item December 31, 2021 December 31, 2020
Current Assets:
Cash and bank balances 4,583,245,371.02 5,904,127,970.85
Deposit reservation for balance
Lending to banks and other
financial institutions
Held-for-trading financial assets 128,017,735.11
Derivative financial assets
Notes receivable 54,402,653.25 64,663,544.98
Accounts receivable 4,946,704,963.71 5,564,834,864.04
Financing from accounts
296,379,694.57 520,429,874.86
receivables
Prepayments 128,604,382.66 137,769,198.53
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 509,164,126.27 257,670,998.28
Including: Interest receivable
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Dividends receivable
Financial assets purchased under
resale agreement
Inventories 1,124,149,719.01 1,305,177,407.85
Contract assets 140,367,802.53 170,840,655.62
Held-for-sale assets
Non-current assets due within one
739,917,866.53 1,157,997,329.53
year
Other current assets 492,705,381.17 524,859,055.94
Total current assets 13,015,641,960.72 15,736,388,635.59
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 1,017,246,537.53 1,063,292,418.65
Long-term equity investments 603,580,781.31 318,243,332.69
Other entity instrument
15,702,971.01 26,070,000.00
investments
Other non-current financial assets
Investment properties 1,837,703.68 2,009,006.98
Fixed assets 1,758,052,005.19 1,640,546,747.67
Construction in progress 224,068,633.86 1,782,529,087.95
Bearer biological assets
Oil and gas assets
Right-of-use assets 25,505,911.86
Intangible assets 5,319,721,844.23 3,163,935,814.41
Development expenditure 15,682,278.17 4,449,066.69
Goodwill 5,976,192,021.27 6,170,809,035.86
Long-term deferred expenses 15,733,757.32 12,703,802.65
Deferred tax assets 109,565,926.15 95,270,882.31
Other non-current assets 233,477,295.83 94,289,159.43
Total non-current Assets 15,316,367,667.41 14,374,148,355.29
Total assets 28,332,009,628.13 30,110,536,990.88
Current liabilities:
Short-term borrowings 439,024,733.46 1,657,905,376.55
Borrowings from the Central Bank
Borrowings from banks and other
financial institutions
Held-for-trading financial
810,300.00
liabilities
Derivative financial liabilities
Notes payable 2,468,799,189.71 3,853,175,394.09
Accounts payable 2,960,061,508.33 3,404,825,085.03
Advance receipts
Contract liabilities 210,432,628.98 181,051,683.90
Financial assets sold under
repurchase agreement
Absorbing deposit and due to
placements with banks and other
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
financial institutions
Receivings from vicariously
traded securities
Receivings from vicariously sold
securities
Employee benefits payable 310,701,572.37 321,861,989.64
Taxes payable 139,494,861.08 372,514,942.66
Other payables 683,714,082.05 443,477,082.48
Including: Interest payable
Dividends payable
Fees and commissions payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due within
378,610,951.81 150,862,201.57
one year
Other current liabilities 62,964,777.60 55,106,039.73
Total current liabilities 7,653,804,305.39 10,441,590,095.65
Non-current liabilities:
Insurance contract reserves
Long-term borrowings 1,697,742,767.72 765,643,457.78
Bonds payable 1,254,962,176.00 1,199,466,109.60
Including: Preference shares
Perpetual bonds
Lease liabilities 18,523,740.10
Long-term payables 315,735,814.91 255,735,814.91
Long-term employee benefits
payable
Estimated liabilities 3,129,793.85 1,461,553.82
Deferred income 101,635,992.65 96,734,819.84
Deferred income tax liabilities 32,562,033.97 78,884,957.38
Other non-current liabilities
Total Non-current Liabilities 3,424,292,319.20 2,397,926,713.33
Total liabilities 11,078,096,624.59 12,839,516,808.98
Owner's equity:
Share capital 3,175,734,760.00 3,163,062,146.00
Other equity instruments 266,929,289.24 266,939,831.65
Including: Preference shares
Perpetual bonds
Capital reserve 9,772,795,863.75 9,707,741,876.49
Less: Treasury shares 455,303,777.91 8,920,597.83
Other comprehensive income -4,280,000.00
Special reserve
Surplus reserve 296,754,883.56 232,701,943.56
General risk reserve
Retained profits 3,850,610,683.45 3,558,688,885.55
Total owners' equity attributable to
16,903,241,702.09 16,920,214,085.42
equity holders of the Parent Company
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Minority interests 350,671,301.45 350,806,096.48
Total owners' equity 17,253,913,003.54 17,271,020,181.90
Total liabilities and owners' equity 28,332,009,628.13 30,110,536,990.88
Legal Representative: Ma Gang Chief Accountant: Lu Anfeng Person in Charge of Accounting Body: Wu Shanshan
2. The Parent Company’s balance sheet
Unit: RMB
Item Dec. 31, 2021 Dec. 31, 2020
Current Assets:
Cash and bank balances 920,283,773.31 1,279,695,772.57
Held-for-trading financial assets 126,075,691.90
Derivative financial assets
Notes receivable 2,964,486.88
Accounts receivable
Financing from accounts
221,756,340.36 528,356,236.97
receivables
Prepayments 601,403.69
Other receivables 3,884,005,093.84 3,095,331,754.24
Including: Interest
receivable
Dividends receivable 50,000,000.00
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within one
337,148,608.96
year
Other current assets
Total current assets 5,029,611,098.08 5,366,608,064.64
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 16,956,047,890.72 16,694,341,699.36
Other entity instrument
15,702,971.01 26,070,000.00
investments
Other non-current financial assets
Investment properties
Fixed assets
Construction in progress
Bearer biological assets
Oil and gas assets
Right-of-use assets 1,779,955.11
Intangible assets 2,755,338.15 3,395,200.95
Development expenditure
Goodwill
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Long-term deferred expenses 1,155,903.84
Deferred tax assets
Other non-current assets
Total non-current Assets 16,976,286,154.99 16,724,962,804.15
Total assets 22,005,897,253.07 22,091,570,868.79
Current liabilities:
Short-term borrowings 150,165,000.00 600,733,518.18
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1,137,507.93 3,899,667.53
Advance receipts
Contract liabilities
Employee benefits payable 3,357,619.13 8,700,968.00
Taxes payable 10,278,606.48 12,475,208.42
Other payables 892,387,560.66 753,207,113.25
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within
1,539,297.15
one year
Other current liabilities
Total current liabilities 1,058,865,591.35 1,379,016,475.38
Non-current liabilities:
Long-term borrowings 300,000,000.00
Bonds payable 1,254,962,176.00 1,199,466,109.60
Including: Preference shares
Perpetual bonds
Lease liabilities 579,712.08
Long-term payables 3,000,000.00 3,000,000.00
Long-term employee benefits
payable
Estimated liabilities 3,129,793.85 218,598.02
Deferred income 350,000.00
Deferred income tax liabilities 30,762,849.39
Other non-current liabilities
Total Non-current Liabilities 1,561,671,681.93 1,233,797,557.01
Total liabilities 2,620,537,273.28 2,612,814,032.39
Owner's equity:
Share capital 3,175,734,760.00 3,163,062,146.00
Other equity instruments 266,929,289.24 266,939,831.65
Including: Preference shares
Perpetual bonds
Capital reserve 15,433,256,911.67 15,356,688,889.72
Less: Treasury shares 455,303,777.91 8,920,597.83
Other comprehensive income -4,280,000.00
119
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Special reserve
Surplus reserve 262,534,494.14 198,481,554.14
Retained profits 706,488,302.65 502,505,012.72
Total owners' equity 19,385,359,979.79 19,478,756,836.40
Total liabilities and owners' equity 22,005,897,253.07 22,091,570,868.79
3. Consolidated income statement
Unit: RMB
Item FY2021 FY2020
I. Total operating income 11,813,537,444.48 14,332,025,075.40
Including: Operating income 11,813,537,444.48 14,332,025,075.40
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 10,909,873,152.25 12,499,304,152.40
Including: Operating costs 9,210,318,426.37 10,766,288,959.00
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
Net provision of insurance policy
reserve
Insurance policyholder dividends
Expenses for reinsurance accepted
Taxes and surcharges 54,143,815.44 74,460,829.99
Selling expenses 738,833,571.05 801,289,013.51
Administrative expenses 585,353,407.57 536,466,686.12
R&D expenses 262,619,127.29 254,677,332.19
Financial expenses 58,604,804.53 66,121,331.59
Including: Interest expense 149,868,429.63 136,661,706.73
Interest income 107,324,690.38 94,482,738.64
Add: Other income 83,541,172.51 74,276,327.83
Investment income (Loss is
239,933,995.59 78,328,670.09
indicated by "-")
Including: Income from investments
36,885,135.08 41,578,662.81
in associates and joint ventures
Gains from derecognition of
financial assets at amortized cost
Gains from foreign exchange
(losses are indicated by "-")
Net exposure hedging income (loss
is indicated by "-")
Gains from fair value changes
-73,074,674.05 -95,719,301.47
(losses are indicated by "-")
Credit impairment loss (losses are
-98,375,820.02 -119,562,421.08
indicated by "-")
Asset impairment losses on (losses
-230,940,495.92 -82,478,500.15
are indicated by "-")
120
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Gains on disposal of assets (losses
-1,161,842.22 -1,787,925.37
are indicated by "-")
III. Operating profit (loss is indicated by
823,586,628.12 1,685,777,772.85
"-")
Add: Non-operating income 10,028,024.42 9,844,019.69
Less: Non-operating expenses 11,786,454.06 58,229,724.05
IV. Total profit (loss is indicated by "-") 821,828,198.48 1,637,392,068.49
Less: Income tax expenses 53,503,488.11 207,571,413.76
V. Net profit (net loss is indicated by "-") 768,324,710.37 1,429,820,654.73
(I) Classified by business continuity
1. Net profit from going concern
761,297,012.86 1,396,598,567.79
(net loss indicated by "-")
2. Net profit from discontinued
7,027,697.51 33,222,086.94
operations (net loss indicated by "-")
(II) Classified by ownership
1. Net profit attributable to the
728,467,910.42 1,386,476,099.73
shareholders of the Parent Company
2. Profit or loss attributable to
39,856,799.95 43,344,555.00
minority shareholders
VI. Other comprehensive income, net of
-4,280,000.00 -479,437.51
tax
Other comprehensive income
attributable to the owners of the Parent -4,280,000.00 -479,437.51
Company, net of tax
(I) Other comprehensive income
that will not be reclassified to profit or -4,280,000.00
loss
1. Changes arising from re-
measurement of defined benefit plan
2. Other comprehensive
income that cannot be transferred to the
profit or loss under the equity method
3. Fair value changes of
-4,280,000.00
other equity instrument investments
4. Fair value changes of
credit risk of the Company
5. Others
(II) Other comprehensive income
-479,437.51
that will be reclassified to profit or loss
1. Other comprehensive
income that can be transferred to profit or
loss under equity method
2. Fair value changes of
other debt investments
3. Amount of financial
assets reclassified to other comprehensive
income
4. Provision for credit
impairment of other debt investments
5. Cash flow hedging
-479,437.51
reserve
6. Translation difference of
financial statement denominated in
foreign currencies
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
7. Others
Other comprehensive incomes
attributable to minority shareholders, net
of tax
VII. Total comprehensive income 764,044,710.37 1,429,341,217.22
Total comprehensive income
attributable to owners of the Parent 724,187,910.42 1,385,996,662.22
Company
Total comprehensive income
39,856,799.95 43,344,555.00
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.23 0.44
(II) Diluted earnings per share 0.23 0.44
For business combination involving enterprises under common control in the current period, the net profit realized by the acquire
before the combination was RMB 0.00, and the net profit realized by the acquire for the prior period was RMB 0.00.
Legal Representative: Ma Gang Chief Accountant: Lu Anfeng Person in Charge of Accounting Body: Wu Shanshan
4. The parent company's income statement
Unit: RMB
Item FY2021 FY2020
I. Operating income 487,932.74 7,213,284.07
Less: Operating costs 487,932.74 4,157,985.26
Taxes and surcharges 227,340.60 182,314.26
Selling expenses 562,853.92 369,570.87
Administrative expenses 24,147,760.09 39,475,371.54
R&D expenses
Financial expenses -17,684,273.22 -26,807,548.72
Including: Interest expense 23,111,838.20 39,786,911.13
Interest income 83,393,551.31 52,733,916.01
Add: Other income 184,301.81 46,200.00
Investment income (Loss is
697,535,882.88 -51,519,175.85
indicated by "-")
Including: Income from
investments in associates and joint 24,398,494.78 30,182,747.26
ventures
Gains from
derecognition of financial assets at
amortized cost (losses are indicated by
"-")
Net exposure hedging
income (loss is indicated by "-")
Gains from fair value
-73,120,883.39 -89,179,102.46
changes (losses are indicated by "-")
Credit impairment loss
-11,011,665.82 -9,948,732.66
(losses are indicated by "-")
Asset impairment losses
on (losses are indicated by "-")
Gains on disposal of
assets (losses are indicated by "-")
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
II. Operating profit (loss is indicated by
606,333,954.09 -160,765,220.11
"-")
Add: Non-operating income 1,877,643.88 4,001.38
Less: Non-operating expenses 36,656.80 6,251,989.16
III. Total profit (total loss is indicated
608,174,941.17 -167,013,207.89
by "-")
Less: Income tax expenses -32,354,461.28 -16,043,825.23
IV. Net Profit (net loss is indicated by "-
640,529,402.45 -150,969,382.66
")
(I) Net profit from going concern
640,529,402.45 -150,969,382.66
(net loss is indicated by "-")
(II) Net profit from discontinued
operations (net loss is indicated by "-")
V. Other comprehensive income, net of
-4,280,000.00
tax
(I) Other comprehensive income
that will not be reclassified to profit or -4,280,000.00
loss
1. Changes arising from re-
measurement of defined benefit plan
2. Other comprehensive
income that cannot be transferred to the
profit or loss under the equity method
3. Fair value changes of
-4,280,000.00
other equity instrument investments
4. Fair value changes of
credit risk of the Company
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss
1. Other comprehensive
income that can be transferred to profit
or loss under equity method
2. Fair value changes of
other debt investments
3. Amount of financial
assets reclassified to other
comprehensive income
4. Provision for credit
impairment of other debt investments
5. Cash flow hedging
reserve
6. Translation difference of
financial statement denominated in
foreign currencies
7. Others
VI. Total comprehensive income 636,249,402.45 -150,969,382.66
VII. Earnings Per Share:
(I) Basic earnings per share
(II) Diluted earnings per share
123
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
5. Consolidated Cash Flow Statement
Unit: RMB
Item FY2021 FY2020
I. Cash flows from operating activities:
Cash receipts from sale of goods
11,921,988,281.60 14,388,470,951.18
and rendering of services
Net Increase in customers deposits
and due to placements with from banks
and other financial institutions
Net increase in borrowings from
Central Bank
Net increase in borrowings from
banks and other financial institutions
Cash receipts from premiums
under direct insurance contracts
Net cash receipts from reinsurance
business
Net increase in policyholders'
deposits and investment
Cash receipts from interest, fees
and commissions
Net increase in borrowings from
banks and other financial institutions
Net increase in financial assets
sold under repurchase agreements
Net cash receipts from vicariously
traded securities trading agency
securities
Receipts of tax refunds 26,261,970.67 42,951,350.75
Other cash receipts relating to
2,924,238,760.42 1,153,494,070.87
operating activities
Subtotal of cash inflows from
14,872,489,012.69 15,584,916,372.80
operating activities
Cash payments for goods
9,223,061,869.14 9,435,508,509.89
purchases and services received
Net increase in loans and
advances to customers
Net increase in balance with the
Central Bank and due placements with
from banks and other financial
institutions
Cash payments for claims and
policyholders' benefits under direct
insurance contracts
Net increase in lending to banks
and other financial institutions
Cash payments for interest, fees
and commissions
Cash payments for insurance
policyholder dividends
Cash payments to and on behalf of
1,604,759,059.51 1,060,641,117.62
employees
Payments of various types of taxes 628,578,908.13 617,586,885.55
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Other cash payments relating to
2,606,870,455.78 2,782,465,767.99
operating activities
Subtotal of cash outflows from
14,063,270,292.56 13,896,202,281.05
operating activities
Net cash flows from operating
809,218,720.13 1,688,714,091.75
activities
II. Cash flows from investing activities:
Cash receipts from disposals and
56,196,352.10 25,375,775.54
recovery of investments
Cash receipts from investment
42,698,349.08 47,958,881.63
income
Net cash receipts from disposal of
fixed assets, intangible assets and other 17,760,470.09 4,912,554.51
long-term assets
Net cash receipts from disposal of
445,597,313.96 213,687,034.09
subsidiaries and other business units
Other cash receipts relating to
4,850,116,524.23 5,159,933,419.02
investing activities
Subtotal of cash inflows from
5,412,369,009.46 5,451,867,664.79
investing activities
Cash payments to acquire or
construct fixed assets, intangible assets 1,734,581,869.14 1,291,812,173.08
and other long-term assets
Cash payments to acquire
10,130,000.00 7,639,195.26
investments
Net increase in pledged loans
receivables
Net cash payments for acquisition
of subsidiaries and other business units
Other cash payments relating to
4,789,881,717.72 5,036,128,312.71
investing activities
Subtotal of cash outflows from
6,534,593,586.86 6,335,579,681.05
investing activities
Net cash flows from investing activities -1,122,224,577.40 -883,712,016.26
III. Cash flows from financing
activities:
Cash receipts from capital
96,777,104.58 64,992,660.00
contributions
Including: Cash receipts from
capital contributions from minority
17,943,815.00 64,992,660.00
shareholders' investment ins
subsidiaries
Cash receipts from borrowings 2,571,966,000.32 5,849,194,821.72
Other cash receipts relating to
233,079,996.55 7,880,000.00
financing activities
Subtotal of cash inflows from
2,901,823,101.45 5,922,067,481.72
financing activities
Cash repayments of borrowings 2,180,619,133.00 4,153,395,539.94
Cash payments for distribution of
dividends, profits or settlement of 491,122,899.60 488,778,125.98
interest expenses
Including: Payments for
distribution of dividends or profits to 339,454.75
minority shareholders by subsidiaries
Other cash payments relating to 454,152,599.63 38,041,830.99
125
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
financing activities
Subtotal of cash outflows from
3,125,894,632.23 4,680,215,496.91
financing activities
Net cash flows from financing activities -224,071,530.78 1,241,851,984.81
IV. Effect of exchange rate changes on
-2,001,825.46 -708,908.76
cash and cash equivalents
V. Net increase in cash and cash
-539,079,213.51 2,046,145,151.54
equivalents
Add: Opening balance of cash and
4,657,826,099.23 2,611,680,947.69
cash equivalents
VI. Closing balance of cash and cash
4,118,746,885.72 4,657,826,099.23
equivalents
6. The parent company's cash flow statement
Unit: RMB
Item FY2021 FY2020
I. Cash flows from operating activities:
Cash receipts from sale of goods
728,741.14 8,741,951.34
and rendering of services
Receipts of tax refunds
Other cash receipts relating to
1,467,056,243.50 532,435,143.45
operating activities
Subtotal of cash inflows from
1,467,784,984.64 541,177,094.79
operating activities
Cash payments for goods
1,743,599.35 8,712,307.61
purchases and services received
Cash payments to and on behalf of
16,185,831.90 9,702,646.88
employees
Payments of various types of taxes 383,530.02 339,945.08
Other cash payments relating to
1,235,268,785.97 1,244,340,931.04
operating activities
Subtotal of cash outflows from
1,253,581,747.24 1,263,095,830.61
operating activities
Net cash flows from operating activities 214,203,237.40 -721,918,735.82
II. Cash flows from investing activities:
Cash receipts from disposals and
549,259,519.99 513,687,034.09
recovery of investments
Cash receipts from investment
509,652,357.10 95,158,453.24
income
Net cash receipts from disposal of
fixed assets, intangible assets and other
long-term assets
Net cash receipts from disposal of
subsidiaries and other business units
Other cash receipts relating to
2,165,423,619.03 4,883,758,860.22
investing activities
Subtotal of cash inflows from
3,224,335,496.12 5,492,604,347.55
investing activities
Cash payments to acquire or
construct fixed assets, intangible assets 513,101.79 1,135,853.50
and other long-term assets
Cash payments to acquire 436,550,000.00 427,739,035.26
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
investments
Net cash payments for acquisition
of subsidiaries and other business units
Other cash payments relating to
3,012,636,177.10 4,870,251,731.64
investing activities
Subtotal of cash outflows from
3,449,699,278.89 5,299,126,620.40
investing activities
Net cash flows from investing activities -225,363,782.77 193,477,727.15
III. Cash flows from financing
activities:
Cash receipts from capital
78,833,289.58
contributions
Cash receipts from borrowings 650,000,000.00 2,497,336,184.17
Other cash receipts relating to
580,000,000.00 6,100,000.00
financing activities
Subtotal of cash inflows from
1,308,833,289.58 2,503,436,184.17
financing activities
Cash repayments of borrowings 800,000,000.00 777,500,000.00
Cash payments for distribution of
dividends, profits or settlement of 393,783,090.74 375,434,276.64
interest expenses
Other cash payments relating to
447,594,655.11 8,920,597.83
financing activities
Subtotal of cash outflows from
1,641,377,745.85 1,161,854,874.47
financing activities
Net cash flows from financing activities -332,544,456.27 1,341,581,309.70
IV. Effect of exchange rate changes on
cash and cash equivalents
V. Net increase in cash and cash
-343,705,001.64 813,140,301.03
equivalents
Add: Opening balance of cash and
1,213,988,774.95 400,848,473.92
cash equivalents
VI. Closing balance of cash and cash
870,283,773.31 1,213,988,774.95
equivalents
7. Consolidated statement of changes in owners' equity
Amount for the current period
Unit: RMB
FY2021
Equity attributable to owners of the parent company
Other equity Other Minori Total
Item instruments Less: compr
Share Specia Surplu Genera Retain ty owners
Capital Treasu ehensi Sub- interes
capita Prefe Perpe l s l risk ed Others '
reserve ry ve total
l rence tual Other reserve reserve reserve profits ts equity
bond s shares incom
share e
s
3,163
I. Closing 266,9 9,707, 232,70 3,558, 16,920 350,80 17,271
,062, 8,920,
balance of the 39,83 741,87 1,943. 688,88 ,214,0 6,096. ,020,1
146.0 597.83
prior year 1.65 6.49 56 5.55 85.42 48 81.90
0
Add: Changes
in accounting
127
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
policies
Corrections of
prior period
errors
Business
combination
involving
enterprises
under common
control
Others
3,163
II. Opening 266,9 9,707, 232,70 3,558, 16,920 350,80 17,271
,062, 8,920,
balance of the 39,83 741,87 1,943. 688,88 ,214,0 6,096. ,020,1
146.0 597.83
current year 1.65 6.49 56 5.55 85.42 48 81.90
0
III. Changes for
- -
the current 12,67 - 65,053 446,38 - 64,052 291,92 -
16,972 17,107
period (decrease 2,614 10,54 ,987.2 3,180. 4,280, ,940.0 1,797. 134,79
,383.3 ,178.3
is indicated by .00 2.41 6 08 000.00 0 90 5.03
3 6
"-")
(I) Total - 728,46 724,18 39,856 764,04
comprehensive 4,280, 7,910. 7,910. ,799.9 4,710.
income 000.00 42 42 5 37
(II) Owners' - - -
12,67 - 65,053 446,38
contributions 368,66 39,652 408,31
2,614 10,54 ,987.2 3,180.
and reduction in 7,121. ,140.2 9,261.
.00 2.41 6 08
capital 23 3 46
1. Ordinary 12,66 66,167 78,833 17,943 96,777
share invested 5,589 ,700.5 ,289.5 ,815.0 ,104.5
by owners .00 8 8 0 8
2. Capital
contribution -
7,025 52,079 48,561 48,561
from holders of 10,54
.00 .08 .67 .67
other equity 2.41
instruments
3. Share-based
10,348 10,348 10,737
payment 388,93
,242.2 ,242.2 ,181.9
recognized in 9.63
9 9 2
owners' equity
- - - -
446,38
11,514 457,89 57,984 515,88
4. Others 3,180.
,034.6 7,214. ,894.8 2,109.
08
9 77 6 63
- - -
64,052 -
(III) Profit 436,54 372,49 372,83
,940.0 339,45
distribution 6,112. 3,172. 2,627.
0 4.75
52 52 27
-
1. Withdrawal 64,052
64,052
of surplus ,940.0
,940.0
reserve 0
0
2.Withdrawal of
general risk
reserve
- - -
3. Distribution -
372,49 372,49 372,83
to owners (or 339,45
3,172. 3,172. 2,627.
shareholders) 4.75
52 52 27
4. Others
128
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(IV) Transfers
within owners'
equity
1. Capitalization
of capital
reserve (into
cash capital or
share capital)
2. Capitalization
of surplus
reserve (into
cash capital or
share capital)
3. Loss offset by
surplus reserve
4. Changes of
defined benefit
plan transferred
to retained
earnings
5. Other
comprehensive
incomes
transferred to
retained
earnings
6. Others
(V) Special
reserve
1. Withdrawal
of special 7,434, 7,434, 7,434,
reserve in the 025.58 025.58 025.58
period
2. Amount - - -
utilized in the 7,434, 7,434, 7,434,
period 025.58 025.58 025.58
(VI) Others
3,175
Ⅳ. Closing 266,9 9,772, 455,30 - 296,75 3,850, 16,903 350,67 17,253
,734,
balance of the 29,28 795,86 3,777. 4,280, 4,883. 610,68 ,241,7 1,301. ,913,0
760.0
current year 9.24 3.75 91 000.00 56 3.45 02.09 45 03.54
0
Amount for the prior period
Unit: RMB
FY2020
Equity attributable to owners of the parent company
Other equity Other Minorit
Item instruments Less: compr Total
Share Specia Surplu Genera Retain y
Capital Treasu ehensi Sub- interest owners'
capita Prefe Perp l s l risk ed Others equity
reserve ry ve total
l rence etual Other reserve reserve reserve profits s
bond s shares incom
share e
s
3,163
I. Closing 9,698, 99,993 232,70 2,520, 15,514 15,767,
,062, 479,43 252,600
balance of the 117,76 ,195.7 1,943. 329,62 ,697,7 298,314
146.0 7.51 ,598.37
prior year 2.75 5 56 1.90 15.97 .34
0
Add: Changes
in accounting
129
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
policies
Corrections of
prior period
errors
Business
combination
involving
enterprises
under common
control
Others
3,163
II. Opening 9,698, 99,993 232,70 2,520, 15,514 15,767,
,062, 479,43 252,600
balance of the 117,76 ,195.7 1,943. 329,62 ,697,7 298,314
146.0 7.51 ,598.37
current year 2.75 5 56 1.90 15.97 .34
0
III. Changes for
the current -
266,9 - 1,038, 1,405, 1,503,7
period 9,624, 91,072 98,205,
39,83 479,43 359,26 516,36 21,867.
(decrease is 113.74 ,597.9 498.11
1.65 7.51 3.65 9.45 56
indicated by "- 2
")
(I) Total - 1,386, 1,385, 1,429,3
43,344,
comprehensive 479,43 476,09 996,66 41,217.
555.00
income 7.51 9.73 2.22 22
(II) Owners' -
266,9 367,63
contributions 9,624, 91,072 54,860, 422,497
39,83 6,543.
and reduction 113.74 ,597.9 943.11 ,486.42
1.65 31
in capital 2
1. Ordinary -
8,920, 61,699, 52,778,
share invested 8,920,
597.83 287.49 689.66
by owners 597.83
2. Capital
contribution 266,9 266,93
266,939
from holders of 39,83 9,831.
,831.65
other equity 1.65 65
instruments
Share-based
11,260 11,260
payment 765,449 12,025,
,547.8 ,547.8
recognized in .01 996.82
1 1
owners' equity
-
- 98,356 -
99,993 90,752,
4. Others 1,636, ,761.6 7,603,7
,195.7 968.29
434.07 8 93.39
5
- -
-
(III) Profit 348,11 348,11
348,116
distribution 6,836. 6,836.
,836.08
08 08
1. Withdrawal
of surplus
reserve
2.Withdrawal
of general risk
reserve
- -
3. Distribution -
348,11 348,11
to owners (or 348,116
6,836. 6,836.
shareholders) ,836.08
08 08
4. Others
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(IV) Transfers
within owners'
equity
1.
Capitalization
of capital
reserve (into
cash capital or
share capital)
2.
Capitalization
of surplus
reserve (into
cash capital or
share capital)
3. Loss offset
by surplus
reserve
4. Changes of
defined benefit
plan transferred
to retained
earnings
5. Other
comprehensive
incomes
transferred to
retained
earnings
6. Others
(V) Special
reserve
1. Withdrawal
of special 8,699, 8,699, 8,699,4
reserve in the 413.98 413.98 13.98
period
2. Amount - - -
utilized in the 8,699, 8,699, 8,699,4
period 413.98 413.98 13.98
(VI) Others
3,163
Ⅳ. Closing 266,9 9,707, 232,70 3,558, 16,920 17,271,
,062, 8,920, 350,806
balance of the 39,83 741,87 1,943. 688,88 ,214,0 020,181
146.0 597.83 ,096.48
current year 1.65 6.49 56 5.55 85.42 .90
0
8. The parent company's statement of changes in owner’s equity
Amount for the current period
Unit: RMB
FY2021
Other equity
instruments Other
Item Less: Retaine Total
Share Capital compreh Special Surplus
Prefere Perpet Treasury d Others owners'
capital reserve ensive reserve reserve
nce ual Others shares profits equity
income
share bonds
I. Closing 3,163,0 266,93 15,356,6 8,920,59 198,481, 502,50 19,478,75
balance of the 62,146. 9,831.6 88,889.7 7.83 554.14 5,012.7 6,836.40
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
prior year 00 5 2 2
Add: Changes in
accounting
policies
Corrections of
prior period
errors
Others
II. Opening 3,163,0 266,93 15,356,6 502,50
8,920,59 198,481, 19,478,75
balance of the 62,146. 9,831.6 88,889.7 5,012.7
7.83 554.14 6,836.40
current year 00 5 2 2
III. Changes for
the current - - 203,98 -
12,672, 76,568,0 446,383, 64,052,9
period (decrease 10,542. 4,280,00 3,289.9 93,396,85
614.00 21.95 180.08 40.00
is indicated by "- 41 0.00 3 6.61
")
(I) Total - 640,52
636,249,4
comprehensive 4,280,00 9,402.4
02.45
income 0.00 5
(II) Owners'
- -
contributions 12,672, 76,568,0 446,383,
10,542. 357,153,0
and reduction in 614.00 21.95 180.08
41 86.54
capital
1. Ordinary -
12,665, 66,167,7 446,383,
share invested by 367,549,8
589.00 00.58 180.08
owners 90.50
2. Capital
contribution -
7,025.0 52,079.0
from holders of 10,542. 48,561.67
0 8
other equity 41
instruments
3. Share-based
payment 10,348,2 10,348,24
recognized in 42.29 2.29
owners' equity
4. Others
-
-
(III) Profit 64,052,9 436,54
372,493,1
distribution 40.00 6,112.5
72.52
2
-
1. Withdrawal of 64,052,9
64,052,
surplus reserve 40.00
940.00
-
2. Distribution to -
372,49
owners (or 372,493,1
3,172.5
shareholders) 72.52
2
3. Others
(IV) Transfers
within owners'
equity
1. Capitalization
of capital reserve
(into cash capital
or share capital)
2. Capitalization
of surplus
reserve (into
cash capital or
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
share capital)
3. Loss offset by
surplus reserve
4. Changes of
defined benefit
plan transferred
to retained
earnings
5. Other
comprehensive
incomes
transferred to
retained earnings
6. Others
(V) Special
reserve
1. Withdrawal of
special reserve in
the period
2. Amount
utilized in the
period
(VI) Others
Ⅳ. Closing 3,175,7 266,92 15,433,2 - 706,48
455,303, 262,534, 19,385,35
balance of the 34,760. 9,289.2 56,911.6 4,280,00 8,302.6
777.91 494.14 9,979.79
current year 00 4 7 0.00 5
Amount for the prior period
Unit: RMB
FY2020
Other equity
instruments Other
Item Less: Total
Share Capital compre Special Surplus Retained
Treasur Others owners'
capital Prefer Perpet reserve hensive reserve reserve profits
ence ual Others y shares equity
income
share bonds
I. Closing 3,163, 15,345,
99,993,1 198,481 1,001,411 19,608,390,
balance of the 062,14 428,341
95.75 ,554.14 ,231.44 077.73
prior year 6.00 .90
Add: Changes
in accounting
policies
Corrections of
prior period
errors
Others
II. Opening 3,163, 15,345,
99,993,1 198,481 1,001,411 19,608,390,
balance of the 062,14 428,341
95.75 ,554.14 ,231.44 077.73
current year 6.00 .90
III. Changes for
the current
266,93 - - -
period 11,260,5
9,831. 91,072,5 498,906,2 129,633,24
(decrease is 47.82
65 97.92 18.72 1.33
indicated by "-
")
(I) Total - -
comprehensive 150,969,3 150,969,38
income 82.66 2.66
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(II) Owners'
266,93 -
contributions 11,260,5 369,272,97
9,831. 91,072,5
and reduction in 47.82 7.39
65 97.92
capital
1. Ordinary -
8,920,59
share invested 8,920,597.8
7.83
by owners 3
2. Capital
contribution 266,93
266,939,83
from holders of 9,831.
1.65
other equity 65
instruments
3. Share-based
payment 11,260,5 11,260,547.
recognized in 47.82 82
owners' equity
-
99,993,195.
4. Others 99,993,1
75
95.75
- -
(III) Profit
347,936,8 347,936,83
distribution
36.06 6.06
1. Withdrawal
of surplus
reserve
2. Distribution - -
to owners (or 347,936,8 347,936,83
shareholders) 36.06 6.06
3. Others
(IV) Transfers
within owners'
equity
1.
Capitalization
of capital
reserve (into
cash capital or
share capital)
2.
Capitalization
of surplus
reserve (into
cash capital or
share capital)
3. Loss offset
by surplus
reserve
4. Changes of
defined benefit
plan transferred
to retained
earnings
5. Other
comprehensive
incomes
transferred to
retained
earnings
6. Others
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(V) Special
reserve
1. Withdrawal
of special
reserve in the
period
2. Amount
utilized in the
period
(VI) Others
Ⅳ. Closing 3,163, 266,93 15,356,
8,920,59 198,481 502,505,0 19,478,756,
balance of the 062,14 9,831. 688,889
7.83 ,554.14 12.72 836.40
current year 6.00 65 .72
III. Company Profile
Infore Environment Technology Group Co., Ltd. (the "Company"), formerly known as Zhejiang Shangfeng Industrial Co., Ltd.,
was registered with the Zhejiang Industry & Commerce Administrative Bureau on November 18, 1993. Under the approval of the
Zhejiang Share System P ilot Work Coordination Group with the document of approval numbered Zhe Gu [1993] No.51, the
Company was established by Zhejiang Fan and Air Cooling Equipment Co., Ltd., the main initiator, and Shangyu Fan Factory and
Shaoxing Fluid Engineering Research Institute, the joint initiators, through private placement. It is headquartered in Shaoxing City,
Zhejiang Province. The Company currently holds a business license with a unified social credit code of 913300006096799222. As of
December 31, 2021, its registered capital is RMB 3,163,062,146.00, and its share capital is RMB 3,175,734,760.00. The difference
between the Company’s registered capital and share capital is caused by the unfulfilled industrial and commercial change registration
of the increased share capital. According to China Securities Depository and Clearing Corporation Limited ("CSDC"), as of
December 31, 2021, the Company has 1,139,599,318 restricted outstanding shares and 2,039,872,433 unrestricted outstanding sha res,
totaling 3,179,471,751 shares, including 3,736,991 shares that were exercised by employees and paid to the CSDC’s account but not
yet transferred to the Company’s account. The Company’s shares have been listed on Shenzhen Stock Exchange since March 30,
2000.
The Company is classified as ecological protection and environmental management industry. Its main business activities include
R&D, maintenance and operation services of environmental monitoring instruments and environmental sanitation equipment,
environmental treatment technology development, consulting and services, operation services of environmental treatment facilities,
environmental engineering, environmental protection engineering, urban engineering, sale of ventilators, air-cooling, and water-
cooling and air-conditioning equipment, etc. The main revenue source categories include environmental and sanitation machinery
and equipment, sale of ventilators, and environmental sanitation operation services.
The financial statements were approved and authorized for issuance by the 18th meeting of the ninth session of the Board of
Directors dated April 29, 2022.
The Company has brought 189188 subsidiaries including Changsha Zoomlion Environmental Industry Co., Ltd., hereinafter
referred to as Zoomlion Environmental, Zhejia ng Shangfeng Hi-Tech Zhuanfeng Industrial Co., Ltd., hereinafter referred to as
Shangfeng Industrial, Guangdong Infore Technology Co., Ltd. (hereinafter referred to as Infore Technology), and Shenzhen
Greenlander Environmental Protection Co., Ltd. (hereinafter referred to as Greenlander Environmental) into the consolidation scope.
Please refer to sections VI and VII of notes to financial statements for details.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
IV. Preparation Basis of the Financial Statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. Assessment of the ability to continue as a going concern
The Company has no event or condition that may cast significant doubts upon the Company’s ability to continue as a going
concern within 12 months after the balance sheet date.
V. Significant accounting policies and estimates
Specific accounting policies and accounting estimates reminders:
Important note: The Company has set up accounting policies and estimates on transactions or events such as impairment of
financial instruments, depreciation of fixed assets, amortization of intangible assets, revenue recognition, etc. based on the
Company’s actual production and operation features.
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business
Enterprises, and present truly and completely the financial position, results of operations, cash flows, and other related information of
the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
The Company has a relatively short operating cycle for its business. An asset or a liability is classified as current if it is expected
to be realized or due within 12 months.
4. Recording currency
The Company’s recording currency is Renminbi (RMB).
5. Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from a business combination are measured at the carrying amount of the combined party included
in the consolidated financial statements of the ultimate controlling party at the combination date. The difference between the carrying
amount of the equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that
of the combination consideration or total par value of shares issued is adjusted to capital reserve , and if the balance of capital reserve
is insufficient to offset, any excess is adjusted to retained earnings.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
2. Accounting treatment of business combination not under common control
When the combination cost is in excess of the fair value of identifiable net assets obtained from the acquire on the acquisition
date, the excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities, and contingent lia bilities, and the
measurement of the combination cost are reviewed, and then the difference is recognized in profit or loss.
6. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated financial statements are
compiled by the parent company according to CASBE 33 – Consolidated Financial Statements, based on relevant information and
the financial statements of the parent company and its subsidiaries.
7. Classification of joint arrangements and accounting treatments of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation, it recognizes the following items in relation to its interest in the
joint operation:
(1) its assets, including its share of any assets held jointly;
(2) its liabilities, including its share of any liabilities incurred jointly;
(3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sales of the assets by the joint operation; and
(5) its expenses, including its share of any expenses incurred jointly.
8. Recognition criteria of cash and cash equivalents
Cash as presented in the cash flow statement refers to cash on hand and deposits on demand for payment. Cash equivalents refer
to short-term, highly liquid investments that can be readily converted to known amounts of cash and that are subject to an
insignificant risk of changes in value.
9. Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB at the spot exchange rate on the transaction date at initial
recognition. On the balance sheet date, monetary items denominated in foreign currency are translated at the spot exchange rate on
the balance sheet date with the difference, except for those arising from the principal and interest of exclusive borrowings eligible for
capitalization, included in profit or loss; non-monetary items carried at historical costs are translated at the spot exchange rate on the
transaction date, with the RMB amounts unchanged; non-monetary items carried at fair value in foreign currency are translated at the
spot exchange rate on the date when the fair value is determined, with the difference included in profit or loss or other comprehensive
income.
2. Translation of financial statements measured in foreign currency
The asset and liability items on the balance sheet are translated into RMB at the spot rate on the balance sheet date; the equity
items, other than the undistributed profit, are translated at the spot rate on the transaction date; the revenue and expense items on the
income statement are translated into RMB at the spot exchange rate on the transaction date. The difference arising from the
aforementioned foreign currency translation is included in other comprehensive income.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
10. Financial Instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1) financial assets measured at
amortized cost; (2) financial assets measured at fair value with changes included in other comprehensive income; (3) financia l assets
measured at fair value with changes include d in profit or loss.
Financial liabilities are classified into the following four categories when initially recognized: (1) financial liabilities measured
at fair value with changes included in profit or loss; (2) financial liabilities that arise when a transfer of a financial asset does not
qualify for derecognition or when the continuing involvement approach applies; (3) financial guarantee contracts not falling within
the above categories (1) and (2), and commitments to provide a loan at a below-market interest rate, which do not fall within the
above category (1); (4) financial liabilities measured at amortized cost.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
(1) Recognition criteria and initial measurement method of financial assets and financial liabilities
A financial asset or a financial liability is recognized when the Company becomes a party to a financial instrument contract.
Financial assets and financial liabilities are measured at fair value when initially recognized; for financial assets and liabilities
measured at fair value with changes included in profit or loss, the transaction expenses thereof are directly included in profit or loss;
for other categories of financial assets and financial liabilities, the transaction expenses thereof are included into the initially
recognized amount. However, at initial recognition, for accounts receivable that do not contain a significant financing compo nent or
contracts in which the financing components with an associated period less than one year are not considered, the initial measurement
is conducted at their transaction price defined in the Accounting Standard for Business Enterprises 14 – Revenues.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
This category of financial assets is measured at amortized cost using the effective interest method. Gains or losses on financial
assets that are measured at amortized cost but not part of any hedging relationship shall be included into profit or loss when they are
derecognized, reclassified, amortized using the effective interest method or recognized with impairment loss.
2) Debt instrument investments measured at fair value with changes included in other comprehensive income
Equity instrument investments are measured at fair value. Interests, impairment gains or losses, and gains and losses on fore ign
exchange that are calculated using the effective interest method shall be included into profit or loss, while other gains or losses are
included into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive income
should be transferred out into profit or loss when the financial assets are derecognized.
3) Equity instrument investments measured at fair value with changes included in other comprehensive income
Equity instrument investments are measured at fair value. Dividends obtained (other than those as part of investment cost
recovery) shall be included into profit or loss, while other gains or losses are included into other comprehensive income.
Accumulated gains or losses that initially recognized as other comprehensive income should be transferred out into retained e arnings
when these financial liabilities are derecognized.
4) Financial assets measured at fair value with changes included in profit or loss
These financial assets are measured at fair value, and gains or losses arising therefrom (including interests and dividends) shall
be included into profit or loss, except for those as part of hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities measured at fair value with changes included in profit or loss
This category of financial liabilities includes held-for-trading financial liabilities (including derivatives that are liabilities) and
financial liabilities designated as measured at fair value with changes included in profit or loss. All of them are measured at fair value.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
The amount of changes in the fair value of the financial liabilities that are attributable to changes in the Company’s own credit risk
shall be included into other comprehensive income, unless such treatment would create or enlarge accounting mismatches in profit or
loss. Other gains or losses on those financial liabilities (including interests, changes in fair value that are attributable to reasons other
than changes in the Company’s own credit risk) shall be included into profit or loss, except for those as part of hedging re lationships.
Accumulated gains or losses that initially recognized as other comprehensive income should be transferred out into retained e arnings
when these financial liabilities are derecognized.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies
The financial liabilities are measured in accordance with the Accounting Standards for Business Enterprises No. 23 - Transfer of
Financial Assets.
3) Financial guarantee contracts not falling within the above categories 1) and 2), and commitments to provide a loan at a
below-market interest rate, which do not fall within the above category 1)
Both of them are measured at the higher of: ① the amount of loss allowances in accordance with impairment requirements of
financial instruments; ② the amount initially recognized less the amount of accumulated amortization recognized in accordance with
the Accounting Standards for Business Enterprises No. 14 – Revenue.
4) Financial liabilities measured at amortized cost
They are measured at amortized cost using the effective interest method. Gains or losses on financial liabilities that are
measured at amortized cost but are not part of any hedging relationship shall be included into profit or loss when they are
derecognized or amortized using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when one of the following conditions are met:
① the contractual rights to collect cash flows from the financial assets expired; or
② the financial assets have been transferred, and the transfer qualifies for derecognition as specified in the Accounting
Standards for Business Enterprises No. 23 – Transfer of Financial Assets.
2) When the present obligations of a financial liability are relieved fully or partly, the financial liability (or this part of financial
liability) shall be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all the risks and rewards related to the ownership of the financial asset, it
derecognizes the financial asset, and any right and obligation arising or retained from such transfer is recognized independently as an
asset or a liability; if it has retained substantially all the risks and rewards related to the ownership of the financial as set, it continues
to recognize the financial asset. Where the Company neither transfers nor retains substantially all the risks and rewards related to the
ownership of a financial asset, it is dealt with according to the circumstances as follows respectively: (1) if the Company does not
retain its control over the financial asset, the financial asset is derecognized, and any right and obligation arising or retained from
such transfer is recognized independently as an asset or a liability; (2) if the Company retains its control over the financial asset,
according to the extent of its continuing involvement in the transferred financial asset, the related financial asset is recognized and
the relevant liability is recognized accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the
following two items are included in profit or loss: (1) the carrying amount of the transferred financial asset as of the date of
derecognition; (2) the sum of consideration received from the transfer of the financial asset, and the accumulative amount of the
changes of the fair value originally included in other comprehensive income corresponding to the transferred financial asset
(financial assets transferred refer to debt instrument investments at fair value with changes included in other comprehensive income).
If a part of a financial asset is transferred and satisfies the conditions for derecognition, the entire carrying amount of t he financial
asset before such transfer is, between the portion which is derecognized and the portion which is not, apportioned according to their
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
respective relative fair value, and the difference between the amounts of the following two items are included into profit or loss: (1)
the carrying amount of the portion which is derecognized; (2) the sum of consideration of the portion which is derecognized, and the
portion of the accumulative amount of the changes in the fair value originally included in other comprehensive income which is
corresponding to the portion which is derecognized (financial assets transferred refer to debt instrument investments at fair value with
changes included in other comprehensive income).
4. Fair value determination method of financial assets and financial liabilities
The Company uses valuation techniques that are appropriate in the current circumstances and for which sufficient supporting
data and other information are available to measure the fair value of relevant financial assets and financial liabilities. The inputs to
valuation techniques used to measure fair value are arranged in the following hierarchy and applied accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities available on the measur ement
date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly, including: quoted prices for similar assets or liabilities in active markets; quoted prices for ident ical or similar
assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability, for example,
interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability, inc luding interest rate that is not observable or cannot be
corroborated by observable market data, stock volatility, future cash flows to be paid to fulfill the disposal obligation ass umed in
business combination, and financial forecast developed using the Company’s own data, etc.
5. Impairment of financial instruments
(1) Measurement and accounting treatment
The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets measured at amortized cost,
debt instrument investments, contract assets or lease receivables measured at fair value with changes included in other
comprehensive income, loan commitments other than financial liabilities measured at fair value with changes included in profit or
loss, financial guarantee contracts not belonging to financial liabilities measured at fair value with changes included in profit or loss
or financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies.
Expected credit losses refer to the weighted average of credit losses of financial instruments with the respective risks of a default
occurring as the weights. Credit loss refers to the difference between all contractual cash flows tha t are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounte d at the
original effective interest rate. Among which, purchased or originated credit-impaired financial assets are discounted at the credit-
adjusted effective interest rate.
On the balance sheet date, the Company shall only recognize the cumulative changes of the lifetime expected credit losses since
the initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.
For lease receivables, accounts receivable and contract assets that incurred from the transactions as regulated in the Accounting
Standards for Business Enterprises No. 14 – Revenue, the Company utilizes the simplified approach to measure the loss allowance at
an amount equal to the lifetime expected credit losses.
At each balance sheet date, the Company assesses whether the credit risks on financial assets other than those measured by the
approach above ha ve increased significantly since the initial recognition. The Company measures the loss allowance at an amount
equal to the lifetime expected credit losses if the credit risks have increased significantly since the initial recognition; otherwise, the
Company shall measure the loss allowance for that financial instrument at an amount equal to the 12-month expected credit loss.
Considering the reasonable and based information available, including forward-looking information, the Company compares the
risk of default occurring on the financial instrument as at the balance sheet date with that as at the date of initial recognition, so as to
assess whether the credit risk on the financial instrument has increased significantly since the initial recognition.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
The Company may assume that the credit risk on a financial instrument has not increased significantly since the initial
recognition if the financial instrument is determined to have a relatively low credit risk at the balance sheet date.
The Company estimates the expected credit risk and measure the expected credit losses on an individual or a collective basis.
When the Company adopts the collective basis, financial instruments are grouped with similar credit risk features.
The Company shall remeasure expected credit losses on each balance sheet date, and the increased or reversed amounts of loss
allowance arising therefrom shall be included into profit or loss as impairment losses or gains. For a financial asset measur ed at
amortized cost, the loss allowance reduces the carrying amount of such financial asset presented in the balance sheet; for a debt
investment measured at fair value with changes included in other comprehensive income, the loss allowance shall be recognized in
other comprehensive income, without offsetting the carrying amount of such financial asset.
(2) Financial instruments with the expected credit risk assessed and expected credit losses measured on a collective basis
Item Basis for portfolio Method for measuring the expected credit loss
determination
Other receivables – Portfolio grouped by Related party dealings Based on the historical credit loss experience, the current
balance due from related parties within the within the consolidation situation and the forecast of future economic conditions, the
consolidation scope scope Company calculates the expected credit loss through exposure
at default and 12-month or lifetime expected credit loss rate
Other receivables – Portfolio grouped by Nature of the account Based on the historical credit loss experience, the current
performance compensation situation and the forecast of future economic conditions, the
Company calculates the expected credit loss through exposure
at default and 12-month or lifetime expected credit loss rate
Other receivables – Portfolio grouped by Account aging Based on the historical credit loss experience, the current
account aging situation and the forecast of future economic conditions, the
Company calculates the expected credit loss through exposure
at default and 12-month or lifetime expected credit loss rate
Long-term receivables – Portfolio grouped Nature of the account The expected credit loss rates are managed by five-level
by financial lease payment/ Long-term classification of credit assets of non-bank financial institutions
receivables – Portfolio grouped with and calculated accordingly: 1.5% for pass category, 3% for
accounts receivable and commercial special-mention category, 30% for substandard category, 60%
factoring payment/ Accounts receivable – for doubtful category, and 100% for loss category
Portfolio grouped with commercial
factoring payment
(3) Accounts receivable and contract assets with the expected credit losses measured on a collective basis
1) Specific portfolios and method for measuring the expected credit loss
Item Basis for portfolio Method for measuring the expected credit loss
determination
Bank acceptance receivable Based on the historical credit loss experience, the
current situation and the forecast of future economic
Type of notes conditions, the Company calculates the expected credit
Trade acceptance receivable loss through exposure at default and lifetime expected
credit loss rate
Accounts receivable – Based on the historical credit loss experience, the
Portfolio grouped by Related party dealings current situation and the forecast of future economic
balance due from related within the consolidation conditions, the Company calculates the expected credit
parties within the scope loss through exposure at default and lifetime expected
consolidation scope credit loss rate
Based on the historical credit loss experience, the
Accounts receivable – current situation and the forecast of future economic
Portfolio grouped by Account aging conditions, the Company prepares the comparison table
account aging between overdue days/ages and lifetime expected credit
loss rate, and calculates the expected credit loss
Accounts receivable – Based on the historical credit loss experience, the
Portfolio grouped by current situation and the forecast of future economic
Nature of the account
government subsidies conditions, the Company prepares the comparison table
receivable for new energy between overdue days/ages and lifetime expected credit
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
vehicles loss rate, and calculates the expected credit loss
Nature of the account Based on the historical credit loss experience, the
Contract assets – Portfolio current situation and the forecast of future economic
grouped by quality conditions, the Company calculates the expected credit
guarantee deposit loss through exposure at default and lifetime expected
credit loss rate
For long-term receivables within the credit period that
have not reached the contractual payment deadline, the
Long-term receivables – provision for bad debts is accrued at 5% of the balance;
Portfolio grouped by Nature of the account for the outstanding long-term receivables that have
account aging exceeded the contractual payment deadline, the
provision for bad debts is accrued based on the age of
the balance
2) Accounts receivable – comparison table of ages and lifetime expected credit loss rate of the portfolio grouped by account
aging
① The parent company and electromechanical equipment manufacturing industry
Account aging Expected credit loss rate of accounts receivable (%)
1-180 days (inclusive, the same hereinafter) 0
180 days-1 year 2
1-2 years 10
2-3 years 30
3-5 years 50
Over 5 years 80
② Ventilation equipment manufacturing industry and environmental integrated industry
Account aging Expected credit loss rate of accounts receivable (%)
Within 1 year 5
1-2 years 10
2-3 years 30
3-5 years 50
Over 5 years 100
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet without offsetting. However, the Company
offsets a financial asset and a financial liability and presents the net amount in the balance sheet when, and only when, the Company:
(1) currently has a legally enforceable right to offset the recognized amounts; and (2) intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously.
For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset the transferred asse t and
the associated liability.
11. Notes receivable
12. Accounts receivable
13. Receivables financing
14. Other receivables
The methods of determination and accounting treatment of the expected credit loss of other receivables
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15. Inventory
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the process of
production, and materials or supplies etc. to be consumed in the production process or in the rendering of services.
2. Accounting method for dispatching inventories
Inventories dispatched from storage are accounted for with the weighted average method.
3. Basis for determining the net realizable value of inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and the provisions for
inventory write-down are made on the excess of its cost over the net realizable value. The net realizable value of inventories held for
sale is determined based on the amount of the estimated selling price less the estimated selling expenses and relevant taxes and
surcharges in the ordinary course of business; the net realizable value of materials to be processed is determined based on the amount
of the estimated selling price less the estimated costs of completion, selling expenses and relevant taxes and surcharges in the
ordinary course of business; on the balance sheet date, when only part of the same item of inventories have contract prices, their net
realizable value is determined separately and is compared with their costs to set the provisions for inventory write-down to be made
or reversed.
4. Inventory system
The Company adopts the perpetual inventory system.
5. Amortization method of low-value consumables and packages
(1) Low-value consumables
Packages are amortized with the one-off method.
(2) Packages
Packages are amortized with the one-off method.
16. Contract assets
17. Contract costs
Assets related to contract costs including 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 those costs are expected
to be recovered.
If the costs incurred to fulfill 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 labor, direct materials,
manufacturing costs (or similar costs), costs that are explicitly chargeable to the customer under the contract, and
other costs that are only related to the contract;
2. The costs can increase the resources of the Company that can 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 by the Company on a same basis that is used for
recognizing the revenue of goods or services related to the asset, with amortization being included into profit or
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loss.
The Company shall make a provision for impairment and recognize an impairment loss to the extent that the
carrying amount of an asset related to 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. The provision for impairment shall be reversed and included into profit or loss if the
carrying amount of an asset is less than 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
because the impairment conditions for a previous period no longer exists. The carrying amount of the asset after
the reversal shall not exceed the amount that would have been determined on the reversal date if no provision for
impairment had been made previously.
18. Assets held for sale
1. Classification of non-current assets or disposal groups held for sale
Non-current assets or disposal groups are accounted for as held for sale when all of the following conditions are met: (1) the
asset must be available for immediate sale in its present condition subject to terms that are usual and customary for sales of such
assets or disposal groups; (2) its sales must be highly probable, i.e., the Company has made a decision on the sale plan and has
obtained a confirmed offer, and the sale is expected to be completed within one year.
When the Company acquires a non-current asset or disposal group with a view to resale, it shall classify such non-current asset
or disposal group as held for sale on the acquisition date only if the requirement of "being expected to be completed within one year"
is met on that date and it is highly probable that other criteria for held for sale will be met within a short period (usually within three
months).
An asset or a disposal group is still accounted for as held for sale when the Company remains committed to its plan to sell the
asset or disposal group in the circumstance that non-related party transactions fail to be completed within one year due to one of the
following reasons beyond the control of the Company: (1) a buyer or other party unexpectedly set conditions that will delay the sale,
while the Company has taken timely actions to respond to the conditions and expects a favorable resolution of the delaying fa ctors
within one year since the setting; (2) a non-current asset or disposal group classified as held for sale fails to be sold within one year
due to rare cases, and the Company has taken action necessary to respond to the circumstances during the initial one -year period and
the criteria for held for sale are met.
2. Measurement of non-current assets or disposal groups held for sale
(1) Initial measurement and subsequent measurement
For the initial measurement and subsequent measurement of a non-current asset or disposal group held for sale on the balance
sheet date, where the carrying amount is higher than the fair value less the costs to sell, the carrying amount is written down to the
fair value less the costs to sell, the write-down is recognized in profit or loss as the asset impairment loss, and meanwhile, the
provision for impairment of assets held for sale shall be made.
For a non-current asset or disposal group classified as held for sale on the acquisition date, the asset or disposal group is
measured upon the initial measurement at the lower of its initial measurement amount had it not been so classified and the fair value
less the costs to sell. Apart from the non-current asset or disposal group acquired through business combination, the difference
arising from the net amount of initial measurement of a non-current asset or disposal group at the fair value less the costs to sell shall
be included into profit or loss.
The asset impairment loss recognized for a disposal group held for sale shall deduct the carrying amount of goodwill in the
disposal group first, and then deduct its carrying amount based on the proportion of each non-current asset’s carrying amount in the
disposal group.
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No provision for depreciation or amortization shall be made on non-current assets held for sale or non-current assets in disposal
groups held for sale, while interest and other expenses attributable to the liabilities of a disposal group held for sale sha ll continue to
be recognized.
(2) Accounting treatment of reversal of assets impairment loss
When there is a subsequent increase in the net amount of the fair value of a non-current asset held for sale less the costs to sell
on the balance sheet date, the write-down shall be recovered, and shall be reversed not in excess of the impairment loss that has been
recognized after the non-current asset was classified as held for sale, the reversal amount shall be included into the profit or loss.
Assets impairment loss that has been recognized before the classification is not reversed.
When there is a subsequent increase in the net amount of the fair value of a disposal group held for sale less the costs to sell on
the balance sheet date, the write-down shall be recovered, and shall be reversed not in excess of the non-current assets impairment
loss that has been recognized after the disposal group was classified as held for sale, the reversal amount shall be included into the
profit or loss. The deducted carrying amount of goodwill and non-current assets impairment loss that has been recognized before the
classification are not reversed.
For the subsequent reversal amount of the impairment loss that has been recognized in a disposal group held for sale, the
carrying amount is increased based on the proportion of carrying amount of each non-current asset (excluding goodwill) in the
disposal group.
(3) Accounting treatment of those no longer classified as held for sale and derecognized
A non-current asset or disposal group that does not meet the criteria of being held for sale and no longer classified as held for
sale, or a non-current asset being removed from a disposal group held for sale shall be measured at the lower of: 1) its carrying
amount before it was classified as held for sale, adjusted for any depreciation, amortization or impairment that would have been
recognized had it not been classified as held for sale; and 2) its recoverable amount.
When a non-current asset or disposal group classified as held for sale is derecognized, the unrecognized gains or losses shall be
included into profit or loss.
19. Debt investments
20. Other debt investments
21. Long-term accounts receivable
22. Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities have been unanimously consented by the parties sharing control. Significant influence is the power to participate in
the financial and operating policy decisions of the investee but is not in control or in joint control with others of the stipulation of
these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is made by payment in cash,
transfers of non-cash assets, assumption of liabilities or issuance of equity securities, on the date of combination, it regards the share
of the carrying amount of the equity of the combined party included in the consolidated financial statements of the ultimate
controlling party as the initial investment cost. The difference between the initial investment cost of the long-term equity investments
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and the carrying amount of the combination consideration paid or the par value of shares issued offsets the capital reserve; if the
balance of the capital reserve is insufficient to offset, the retained earnings are adjusted.
When the long-term equity investments are obtained through business combination under common control achieved in stages,
the Company determines whether it is a "package deal"." If it is a "package deal", the stages as a whole are considered as one
transaction in the accounting treatment. If it is not a "package deal", on the date of combination, the initial investment cost is
recognized at the share of the carrying amount of net assets of the combine d party included the consolidated financial statements of
the ultimate controlling party. The capital reserve is adjusted according to the difference between the initial investment cost of the
long-term equity investments and the sum of the carrying amount of the long-term equity investments before combination and the
acquired carrying amount of the consideration newly paid for shares on the combination date, and if the capital reserve is insufficient
to write down, the retained earnings are adjusted.
(2) For business combination not under common control, the initial investment cost is initially recognized at the acquisition-date
fair value of the considerations paid.
If the long-term equity investments are obtained through business combination not under common control achieved in stages,
the Company determined whether they are stand-alone financial statements or consolidated financial statements in the relevant
accounting treatment:
1) In the case of stand-alone financial statements, the initial investment cost accounted for using the cost method is the sum of
the carrying amount of previously-held equity investment and the additional investment cost.
2) In the case of consolidated financial statements, the Company determines whether it is a "package deal". If it is a "package
deal", the stages as a whole are considered as one transaction in the accounting treatment. If it is not a "package deal", the carrying
amount of the acquirer’s previously held equity interest in the acquire is remeasured with the fair value on the acquisition-date fair
value, and the difference between the fair value and the carrying amount is recognized in investment income; when the acquire r’s
previously held equity interest in the acquire involves other comprehensive income under the equity method, the related other
comprehensive income is reclassified as income for the acquisition period, excluding other comprehensive income arising from
changes in net liabilities or assets from remeasurement of the defined benefit plan of the acquire.
(3) Long-term equity investments obtained by ways other than business combination: the initial investment cost of those
obtained by cash payment shall be the actually paid purchase consideration; the initial investment cost of those obtained by issuing
equity securities shall be the fair value of the equity securities issued; the initial investment cost of those obtained throu gh debt
restructuring shall be determined according to the Accounting Standards for Business Enterprises No. 12 – Debt Restructuring; and
the initial investment cost of those obtained through exchange of non-cash assets shall be determined according to the Accounting
Standards for Business Enterprises No. 7 – Non-cash Assets Exchange.
3. Subsequent measurement and recognition method of profit or loss
Long-term equity investments controlled by the investee are accounted for with the cost method, and those in associated
enterprises and joint ventures are accounted for with the equity method.
4. Disposal of a subsidiary in stages resulting in the loss of control
(1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is recognized in profit
or loss. If the disposal does not result in loss of significant influence or joint control, the remaining equity is accounted for with the
equity method; however, if the disposal results in loss of control, joint control, or significant influence, the remaining eq uity is
accounted for according to the Accounting Standards for Business Enterprises No. 22 – Financial Instruments: Recognition and
Measurement.
(2) Consolidated financial statements
1) Disposal of a subsidiary in stages not qualified as "package deal" resulting in loss of control
Before loss of control, the difference between the disposal consideration and the proportionate share of net assets in the disposed
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subsidiary from acquisition date or combination date to the disposal date is adjusted to capital reserve (capital premium); if the
balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When the control of a former subsidiary is lost, the remaining equity is remeasured at the fair value on the date of loss of control.
The aggregated value of disposal consideration and the fair value of the remaining equity, less the share of net assets in the disposed
subsidiary held before the disposal from the acquisition date or combination date to the disposal date is recognized in inves tment
income in the period when the control over such subsidiary is lost, and meanwhile goodwill is offset. Other comprehensive income
related to equity investments in the former subsidiary is reclassified as investment income upon the loss of control.
2) Disposal of a subsidiary in stages qua lified as "package deal" resulting in loss of control
In case of a "package deal", the stages as a whole are considered as one transaction resulting in loss of control in the accounting
treatment. However, before loss of control, the difference between the disposal consideration at each stage and the proportionate
share of net assets in the disposed subsidiary is recognized as other comprehensive income in the consolidated financial statements
and reclassified as profit or loss in the period when the control is lost.
23. Investment properties
Measurement mode of investment properties
Measurement by cost method
Depreciation or amortization method
1. Investment properties include leased-out land use right, land use right held for capital appreciation, and buildings that have
been leased out.
2. Investment properties are measured initially at cost, subsequently using the cost model, and depreciated or amortized with the
same method as that of fixed assets and intangible assets.
24. Fixed assets
(1) Recognition criteria
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental to others, or f or
administrative purposes, and expected to be used for more than one accounting year. Fixed assets are recognized if, and only if, it is
probable that future economic benefits associated with the assets will flow in and the cost of the assets can be measured reliably.
(2) Depreciation method
Category Depreciation method Depreciation life Salvage rate Annual depreciation rate
Houses and buildings Straight-line method 3-35 3-5 1.90-19.40
General equipment Straight-line method 3-5 3-5 9.50-32.33
Special equipment Straight-line method 2-15 0-5 6.33-47.50
Transport facilities Straight-line method 3-15 3-5 9.50-32.33
Other equipment Straight-line method 3-10 5 9.50-31.67
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(3) Basis for identification of fixed assets held under finance leases and related valuation and depreciation
methods
25. Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits associated with the item will
flow in, and the cost of the item can be measured reliably. Construction in progress is measured at the actual cost incurred to reach its
designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable conditions. When
the final accounts of the construction in progress was not finished while reaching the designed usable conditions, it is transferred to
fixed assets using the estimated value first, and then adjusted accordingly when the actual cost is settled in the final accounts, but the
accumulated depreciation is not to be adjusted retrospectively.
26. Borrowing costs
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or
production of assets eligible for capitalization, it is capitalized and included in the costs of relevant assets; other borrowing costs are
recognized as expenses on the basis of the actual amount incurred, and are included in profit or loss.
2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless all of the following requirements are met: 1) the asset disbursements have
already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or production activit ies which
are necessary to prepare the asset for its intended use or sale have already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally, and the interruption
period lasts for more than 3 months, the capitalization of the borrowing costs is suspended; the borrowing costs incurred dur ing such
period are recognized as expenses, and are included in profit or loss, until the acquisition and construction or production of the asset
restarts.
(3) When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the
capitalization of the borrowing costs is ceased.
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization, the interest
amount to be capitalized is determined in light of the actual interest expenses incurred (including amortization of premium or
discount according to the effective interest method) of the special borrowings in the current period less the interest income on the
unused borrowings as a deposit in the bank or as a temporary investment; where a general borrowing is used for the acquisitio n and
construction or production of assets eligible for capitalization, the interest amount on the general borrowing t o be capitalized is
calculated and determined by multiplying the weighted average asset disbursement on the part of the accumulative asset
disbursements in excess of the general borrowing by the capitalization rate of the general borrowing used.
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27. Biological assets
28. Oil-and-gas assets
29. Right-of-us assets
30. Intangible assets
(1) Valuation method, useful life and impairment test
1. Intangible assets, including land use rights, patent rights and non-patented technologies etc., are initially measured at cost.
2. Intangible assets with finite useful lives are amortized within their useful lives systematically and reasonably according to
economic benefits related to the intangible assets; if it is unable to reliably determine the expected realization pattern, the intangible
assets are amortized by the straight-line method, with details as follows:
Item Amortization period (years)
Franchise Contract years
Land use right 35-50
Proprietary technology Economic lifecycle
Software 3-10
Others 5
(2) Accounting policies on internal R&D expenses
Expenditures in the research phase of an internal R&D project are recognized as profit or loss d when they are incurred. An
intangible asset arising from the development phase of an internal R&D project is recognized if all of the following criteria are met:
(1) it is technically feasible to complete the intangible asset so that it will be available for use or sale; (2) there is an intention to
complete the intangible asset and use or sell it; (3) evidence of how the intangible asset will generate probable future economic
benefits, among other things, it is able to demonstrate the existence of a market for the output of the intangible asset or the intangible
asset itself or, if it is to be used internally, the usefulness of the intangible asset; (4) there are adequate technical, financial and other
resources available to complete the development and to use or sell the intangible asset; and (5) the expenditure attributable to the
intangible asset during its development can be measured reliably.
Criteria used by the Company for distinguishing the research phase from the development phase of an internal R&D project:
The planned investigation phase for acquiring new technology and knowledge should be defined as the rese arch phase, which is
characterized by the planning and exploratory nature; before commercial production or use, when the research results or other
knowledge are applied to a certain plan or design with the intention to produce new or substantially improved materials, devices,
products, etc., such stage should be determined as the development phase, which has the characteristics of pertinence and gre ater
possibility of generating results. The Company divides the research and development phases by forming the prototype drawing and
starting the prototype trial production. Expenditures in the research phase of an internal R&D project are recognized as prof it or loss
when they are incurred. When the Company enters the development phase, project expenditures are first calculated by projects under
"development expenditure", and if the capitalization conditions are met, they are reported as development expenditures in the
financial statements. The project will be transferred to intangible assets when it qualifies for sale or mass production.
31. Provisions for long-term asset impairment
For long-term assets such as long-term equity investments, investment property measured by the cost model, fixed assets,
construction in progress, right-of-use assets, intangible assets with finite useful lives, etc., if on the balance sheet date there is an
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indication of impairment, the recoverable amount is to be estimated. For goodwill recognized in business combination and inta ngible
assets with indefinite useful lives, no matter whether there is an indication of impairment, the impairment test must be performed
annually. The impairment test on goodwill is performed on its related asset group or asset group portfolio.
When the recoverable amount of such long-term assets is lower than their carrying amount, the difference is recognized as
provision for assets impairment through profit or loss.
32. Long-term deferred expenses
The long-term deferred and prepaid expenses are the expenses that have been spent but with amortization per iods of more than
one year (excluded). They are recorded with the actual amount, and evenly amortized within the beneficiary period or stipulated
period. If any items of the long-term deferred and prepaid expenses cannot be beneficial to the following accounting periods, the
residual values of such items which have not been amortized shall be fully transferred to profit or loss.
33. Contract liabilities
34. Employees’ remuneration
(1) Accounting treatment of short-term remuneration
1. Employees' remuneration includes short-term remuneration, post-employment benefits, termination benefits and other long-
term employee benefits.
2. Accounting treatment of short-term remuneration
The Company recognizes, in the accounting period in which an employee provides service, short-term remuneration actually
incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution amount payable
to a defined contribution plan as a liability, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) The accounting treatment of a defined benefit plan usually involves the following steps:
1) According to the projected unit credit method, the demographic variables, financial variables, etc. shall be estimated through
the unbiased and mutually consistent actuarial assumption, so as to measure the obligations arising from the defined benefit plan and
determine the period of relevant obligations. Meanwhile, the obligations under the defined benefit plan are discounted to determine
the present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets, the deficit or surplus by deducting the fair value of the defined benefit plan ass ets
from the present value of the defined benefit plan obligations is recognized as a net liability or asset of the defined benefit plan.
When a defined benefit plan has a surplus, the net asset of the defined benefit plan is measured at the lower of the surplus in the
defined benefit plan and the asset ceiling;
3) At the end of the period, the employee remuneration costs generated by the defined benefit plan are recognized as three pa rts:
net interests of the service costs, net liabilities or net assets of the defined benefit plan, and changes from net liabilities or net assets
of the remeasured defined benefit plan, in which the net interests of the service costs and the net liabilities or net assets of the defined
benefit plan are included in profit or loss or relevant assets cost, and the changes from net liabilities or net assets of the remeasured
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defined benefit plan are included in other comprehensive incomes, and are not allowed to be turned back to profit or loss in the
subsequent accounting period, but the amounts recognized in other comprehensive incomes can be transferred within the equity
scope.
(3) Accounting treatment of termination benefits
Termination benefits provided to employees are recognized as an employee remuneration liability generated from termination
benefits, with a corresponding charge to profit or loss on the earlier of the following dates: (1) when the Company cannot unilaterally
withdraw the offer of termination benefits because of the termination of employment or a curtailment proposal; or (2) when the
Company recognizes cost or expenses related to a restructuring that involves the payment of termination benefits.
(4) Accounting treatment of other long-term employee benefits
When other long-term employee benefits provided to the employees can meet the conditions for setting a defined contribution
plan, those benefits shall be accounted for according to the requirements relating to defined contribution plan, while other benefits
are accounted for under the requirements relating to defined benefit plan. In order to simp lify the relevant accounting treatment, the
cost of employee benefits arising therefrom are recognized as service cost, net interest on the net liability or net assets of other long-
term employee benefits, and changes as a result of remeasurement of the net liability or net assets of other long-term employee
benefits. The net total of the aforesaid amounts is recognized in profit or loss or included in the cost of a relevant asset.
35. Lease liabilities
36. Estimated liabilities
1. Obligations are recognized by the Company as estimated liabilities when they become present obligations arising from
contingencies such as providing guarantees externally, litigation matters, products quality guarantee, onerous contract, etc. , which
may cause the outflow of the economic benefits from the Company and the amount of such obligations can be reliably measured.
2. Estimated liabilities are initially measured by the Company according to the best estimated figures required for fulfillin g the
relevant present obligations, and their carrying amount is reviewed on the balance sheet date.
37. Share-based payments
1. Categories of share-based payments
Share-based payments are divided into share-based payments settle by equity and share-based payments settled by cash.
2. Accounting treatment of settlements, modifications and cancellations of share-based payment plans
(1) Share-based payments settled by equity
The share-based payments settled by equity in exchange for employees' services, if immediately exercisable upon being granted,
are recognized as relevant cost or expense at the fair value of equity instruments on the grant date, with a corresponding adjustment
in capital reserve. If the share-based payments settled by equity in exchange for employees' services can be exercisable until the
services are provided in the vesting period or the specified performance criteria are met, then on each balance sheet date within the
exercise period, based on the best estimate of the number of exercisable equity instruments, services received in the period are
recognized as relevant cost or expense at the fair value of equity instruments on the grant date, with a corresponding adjust ment in
capital reserve.
For share-based payments settled by equity in exchange for the services of parties other than employees, if the fair value of the
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services received can be measured reliably, the fair value is measured on the day when the services are received; if the fair value of
the services received cannot be measured reliably, but that of equity instruments can be measured reliably, they are measured at the
fair value of the equity instruments granted measured on the day when the services are received, and recognized as relevant c ost or
expense, with a corresponding increase in owner's equity.
(2) Share-based payments settled by cash
The share-based payments settled by cash in exchange for employees' services, if immediately exercisable upon being granted,
are recognized as relevant cost or expense at the fair value of the liabilities assumed by t he Company on the grant date, with a
corresponding increase in liabilities. If the share-based payments settled by cash in exchange for employees' services can be
exercisable until the services are provided in the exercise period or the specified performance criteria are met, then on each balance
sheet date within the exercise period, based on the best estimate of the exercisable circumstances, the services received in the period
are recognized as relevant cost or expense and the corresponding liabilities at the fair value of the liabilities assumed by the Company.
(3) Modifications and cancellations of share-based payment plan
If a modification increases the fair value of equity instruments granted, the Company recognizes the increase of services
received according to the incremental fair value of equity instruments; if a modification increases the number of equity instruments
granted, the Company recognizes the fair value of the increased equity instruments as an increase in services received; if the
Company modifies the exercise conditions in a manner that is beneficial to the employee, it may take the modified exercise
conditions into account.
If a modification reduces the fair value of equity instruments granted, the Company does not take into account the reduction in
the fair value, but continues to recognize the amount for services received based on the fair value of equity instruments on the grant
date; if a modification reduces the number of equity instruments granted, the Company treats the reduction as a cancellation of that
portion of equity instruments granted; if the exercise conditions are modified in a manner adverse to employees, the modified
exercise conditions may not be taken into account.
If the Company cancels or settles granted equity instruments during the exercise period (other than those canceled because the
exercise conditions are not satisfied), the cancellation or settlement may be treated as an acceleration of exercise, and the amount that
otherwise would have been recognized over the remainder of the exercise period shall be recognized immediately.
38. Preference shares, perpetual bonds and other financial instruments
Pursuant to the relevant accounting standards on financial instruments, Regulations for Distinguishing Financial Liab ilities and
Equity Instruments and Relevant Accounting Treatment (Cai Kuai [2014] No. 13), and Regulations on Accounting Treatments of
Perpetual Bonds (Cai Kuai [2019] No. 2), for financial instruments such as issued convertible bonds, the Company classifies
financial instruments or their components upon initial recognition as financial assets, financial liabilities or equity instr uments,
according to the contract terms of the issued financial instruments and the economic essence it reveals instead of its legal form only,
in combination with the definitions of financial asset, financial liability and equity instrument.
On the balance sheet date, for any financial instrument classified as an equity instrument, its interest expenditure or dividend
distribution is treated as the Company's profit distribution, and its repurchase and cancellation are treated as the changes in equity; for
any financial instrument classified as financial liabilities, its interest expenditure or dividend distribution is treated as borrowing
expense, and its gain or loss on repurchase or redemption is included in profit or loss.
39. Revenue
Accounting policies adopted for revenue recognition and measurement
1. Principles of revenue recognition
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On the contract effective date, the Company shall assess the contract, identify each performance obligation in the contract, and
determine whether a performance obligation is satisfied over time or at a point in time.
Performance obligation is satisfied over time if one of the following criteria is met, otherwise, it is satisfied at a point in time: (1)
the customer simultaneously receives and consumes the economic benefits provided by the Company’s performance as the Company
performs; (2) the customer controls as the goods is created during the Company’s performance; (3) goods created during the
Company’s performance have irreplaceable uses and the Company has an enforceable right to receive the payments for performanc e
completed to date during the whole contract period.
For a performance obligation satisfied over time, the Company shall recognize revenue over time according to the progress of
performance. If the progress cannot be determined reasonably, and the costs incurred are expected to be compensated, the reve nue
shall be recognized at the amount of costs incurred until the progress can be determined reasonably. For a performance obligation
satisfied at a point in time, the revenue shall be recognized at the time point that the customer obtains control of relevant goods or
services. To determine whether the customer has obtained control of the goods, the Company shall consider the following indications:
(1) the Company has a present right to payment for the goods, i.e., the customer is presently obliged to pay for the goods; ( 2) the
Company has transferred the legal title of the goods to the customer, i.e., the customer has the legal title to the goods; (3) the
Company has transferred the physical possession of the goods to the customer, i.e., the customer has physically possessed the goods;
(4) the Company has transferred the significant risks and rewards in the ownership of the goods to the customer, i.e., the customer
has obtained the significant risks and rewards in the ownership of the goods; (5) the customer has accepted the goods; (6) there is
other evidence indicating the customer has obtained control over the goods.
2. Principles of revenue measurement
(1) Revenue is measured by the Company according to the transaction price that is allocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods
or services to a customer, excluding amounts collected on behalf of third parties and those expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount, the Company shall confirm the best estimation of
variable consideration at the expected value or the most likely amount. However, the transaction price that includes the amount of
variable consideration only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
(3) If a contract contains a significant financing component, the Company shall determine the transaction price according to the
amount payable in cash by the customer for obtaining control over the goods or services. The difference between the transaction
price and the amount of contract consideration is amortized with the effective interest method over the contract period. The effects of
a significant financing component shall not be considered if the Company expects, on the contract effective date, that the pe riod
between when the customer obtains control over the goods or services and when the customer pays consideration is one year or less.
(4) For a contract containing two or more performance obligations, the Company shall determine the stand-alone selling price
on the contract effective date of the distinct good underlying each performance obligation and allocate the transaction price to each
performance obligation on a relative stand-alone selling price basis.
3. Specific methods of revenue recognition
The Company mainly sells products such as environmental and sanitation machinery and equipment, ventilator equipment, and
engages in environmental sanitation operation business.
(1) The sale of ventilator equipment is a performance obligation satisfied at a point in time. The revenue from the domestic sales
of products that do not require installation is recognized when the Company has delivered them to the place of delivery designated by
the contract and such delivery have been verified for acceptance by customers, the Company has obtained the delivery notes and
collected the payments or has obtained the right to the payments, and related economic benefits are highly probable to flow t o the
Company; for products that require installation, the revenue is recognized when the products are delivered and the installation and
commissioning are accepted. The revenue from the overseas sales is recognized when the customs clearance has been handled
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pursuant to the contract, the bill of lading has been obtained, the Company has collected the payments or has obtained the right to the
payments, and related economic benefits are highly probable to flow to the Company.
(2) The sale of environmental and sanitation machinery and equipment is a performance obligation satisfied at a point in time,
and its revenue is recognized when the goods are delivered and accepted, the Company has collected the payments or has obtained
the right to the payments, and related economic benefits are highly probable to flow to the Company.
(3) The environmental sanitation operation business is a performance obligation satisfied over time, and its revenue is
recognized according to the service assessment statement confirmed by the service recipient.
(4) The revenue recognition of PPP business with BOT models is detailed in Note III (XXXIII)1 to the financial statements.
Differences in the accounting policies of revenue recognition because the same type of business adopts different operation
models
40. Government subsidies
1. Government subsidies shall be recognized if, and only if all of the following conditions are met: (1) the Company will comply
with the conditions attaching to the subsidies; (2) the subsidies will be received. Monetary government subsidies are measure d at the
amount received or receivable. Non-monetary government subsidies are measured at fair value, and can be measured at nominal
amount in the circumstance that fair value cannot be assessed.
2. Government subsidies related to assets
Government subsidies related to assets are government subsidies with which the Company constructs or otherwise acquires
long-term assets under requirements of government. In the circumstances that there is no specific government requirement, the
Company shall determine based on the primary condition to acquire the subsidies, and government subsidies related to assets are
government subsidies whose primary condition is to construct or otherwise acquire long-term assets. They offset carrying amount of
relevant assets, or they are recognized as deferred income. If recognized as deferred income, they are included in profit or loss within
the useful lives of the relevant assets in a reasonable and systematic manner. Those measured at notional amount are directly
included into profit or loss. For assets sold, transferred, retired or damaged within the useful lives, balance of unamortized deferred
income is transferred into profit or loss of the period in which the disposal occurred.
3. Government subsidies related to income
Government grants related to income are government subsidies other than those related to assets. For government subsidies that
contain both parts related to assets and parts related to income, in which those two parts are blurred, they are thus collect ively
classified as government subsidies related to income. For government subsidies related to income used for compensating the related
future cost, expenses or losses, they are recognized as deferred income and included in profit or loss or used to offset rele vant cost
during the period in which the relevant cost, expenses or losses are recognized; for government subsidies related to income used for
compensating the related cost, expenses or losses incurred to the Company, they are directly included in profit or loss or us ed to
offset relevant cost.
4. Government subsidies related to the ordinary course of business shall be included into other income or used to offset rele vant
cost or expense based on business nature, while those not related to the ordinary course of business shall be included into non-
operating income or expense.
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41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
42. Leases
(1) Accounting treatment of operating lease
1. Company as lessee
The Company recognizes a lease with an entire term of no more than 12 months and without a purchase option as a short-term
lease, and a lease with a separate underlying asset that is of low value when it is new as a low -value asset lease, on the
commencement date of the lease term. The original lease will cease being a low-value asset lease if the Company sub-leases or
expects to sub-lease the underlying asset.
For all short-term leases and low-value asset leases, the Company includes the lease payments to the cost of the related asset or
profit or loss on a straight-line basis in each period over the lease term.
For all leases other than the above-mentioned short-term leases and low-value asset leases that are accounted for in a simplified
way, the Company recognizes a right-of-use assets and a lease liability, on the commencement date of the lease term.
(1) Right-of-use assets
The right-of-use asset is initially measured at cost, which comprises: 1) the amount equal to the lease liability at its initial
recognition; 2) the lease payments made at or before the commencement of the lease, less lease incentives received (if any) ; 3) any
initial direct costs incurred by the lessee; 4) an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and
conditions of the lease.
The Company depreciates the right-of-use assets on a straight-line basis. If the Company is reasonably certain to obtain the
ownership of the underlying asset upon the expiration of the lease term, the Company depreciates the underlying asset over the
remaining useful life. Otherwise, the Company depreciates the underlying asset over the shorter of the lease term and the remaining
useful life of the underlying asset.
(2) Lease liability
The Company recognizes the present value of the lease payments receivable as a lease liability, on the lease commencement
date. When calculating the present value of the lease payments, the Company uses the interest rate implicit in the lease as the
discount rate. However, if the interest rate implicit in the lease cannot be reasonably determined, the Company uses its incr emental
borrowing interest rate as the discount rate. The difference between the amount of lease payments and their present value is regarded
as an unrecognized financing cost, with the interest expense to be recognized at the discount rate used to recognize the pres ent value
of the lease payments and to be included in the current profit or loss in each period over the lease term. The variable lease payments
not included in the measurement of the lease liability are included in the current profit or loss when actually incurred.
After the commencement date of the lease term, in the event of any change in in-substance fixed payments, amounts expected to
be payable under residual value guarantees, the index or rate used to determine the lease payments, or the assessment result or actual
exercise of the purchase option, renewal option or termination option, the Company remeasures the lease liability at the present value
calculated based on the lease payments after the change and adjusts the carrying amount of the right-of-use assets accordingly, and if
the carrying amount of the right-of-use assets has been adjusted down to zero but the lease liability still needs to be further adjusted
down, the Company includes the remaining amount in the current profit or loss.
2. Company as lessor
The Company classifies a lease that substantially transfers all the risks and rewards incidental to ownership of an underlying
asset as a financial lease, and any other lease as an operating lease, on the lease commencement date.
(1) Operating lease
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In each period over the lease term, the Company recognizes the lease receipts as a rental income on a stra ight-line basis, and
capitalizes the initial direct costs incurred and amortizes them to the current profit or loss according to the same principles and
procedures applicable to the recognition of rental income over the lease term. The variable lease payme nts received by the Company
in relation to the operating lease but not included in the lease receipts are included in the current profit or loss when actually incurred.
(2) Financial lease
On the commencement date of the lease term, the Company recognizes a finance lease receivable at an amount equal to the net
investment in the lease (which is the sum of any unguaranteed residual value and the present value of the aggregate of lease payments
receivable as at the commencement date of the lease term, discounted at the interest rate implicit in the lease) and derecognizes a
financial lease asset. In each period over the lease term, the Company calculates and recognizes an interest income at the interest rate
implicit in the lease.
The variable lease payments received by the Company but not included in the measurement of the net investment in the lease
are included in the current profit or loss when actually incurred.
3. Sale and leaseback
(1) Company as lessee
The Company assesses and determines whether the asset transfer in a sale and leaseback transaction is a sale in accordance with
the Accounting Standards for Business Enterprises No. 14 – Revenue.
If the asset transfer in the sale and leaseback transaction is a sale, the Company measures the right-of-use asset arising from the
sale and leaseback at the carrying amount of the original asset corresponding to the part of right-of-use acquired due to the leaseback,
and only recognizes gains or losses in relation to the part of right-of-use transferred to the lessor.
If the asset transfer in the sale-and-leaseback transaction is not a sale, the Company continues recognizing the transferred asset,
and at the same time, recognizes a financial liability equal to the transfer proceeds, and accounts for the financial liability in
accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
(2) Company as lessor
The Company assesses and determines whether the asset transfer in a sale and leaseback transa ction is a sale in accordance with
the Accounting Standards for Business Enterprises No. 14 – Revenue.
If the asset transfer in the sale and leaseback transaction is a sale, the Company accounts for the purchase of the asset in
accordance with other applicable accounting standards for business enterprises, and accounts for the lease of the asset in accordance
with the Accounting Standards for Business Enterprises No. 21 - Lease.
If the asset transfer in the sale-and-leaseback transaction is not a sale, the Company does not recognize the transferred asset, but
recognizes a financial asset equal to the transfer proceeds, and accounts for the financial asset in accordance with the Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
(2) Accounting treatment of financial lease
43. Other significant accounting policies and estimates
(I) Work safety fund
The Company accrues work safety fund in accordance with the Management Measures on the Accrual and Use of Work Safety
Fund (Cai Qi [2012] No. 16) issued by the Ministry of Finance and the State Administration of Work Safety of China. The standard
work safety fund is included in cost or current profit or loss, and meanwhile accounted for under "special reserve". " When the
accrued work safety fund is used as an expense, it can offset the special reserve directly. When the work safety fund forms fixed
assets, the expenses are accounted for under "construction in progress" and recognized as fixed assets when the work safety projects
reach the designed useful conditions; meanwhile, the cost included in fixed assets is to offset the special reserve, and the accumulated
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depreciation shall be recognized with the same amount. Such fixed assets shall not be depreciated in future periods
(II) Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization, management requirements
and internal reporting system. An operating segment of the Company is a component meeting the following conditions
simultaneously:
1. the segment engages in daily activities from which it may generate revenues and incur expenses;
2. its operating results can be regularly reviewed by the management to make decisions about resource to be allocated to t he
segment and to assess its performance;
3. the accounting information regarding its financial position, operating results and cash flows is available through analysis.
(III) Other significant accounting policies and estimates
1. PPP business
The Company adopts the PPP model (by means of BOT and TOT, etc.) for participation in the public infrastructure business.
Project companies can obtain the franchise rights of public infrastructure projects from government authorities so as to take part in
the project construction and operation. Upon expiry of the franchise rights, project companies need to transfer relevant infrastructure
to government or government-designated departments.
The company provides multiple services (both asset building services of PPP projects and operation and maintenance services
after construction) according to the contractual provisions of the PPP project, identifies separate performance obligations in the
contract pursuant to the Accounting Standards for Business Enterprises No.14 – Revenue, and allocates the transaction price to each
performance obligation in proportion to the standalone selling price. If the stand-alone selling price cannot be directly observable or
the similar market price is not available, the Company will reasonably estimate the stand-alone selling price with the market
adjustment method, cost-plus method or residual method after considering information such as market conditions, company specific
factors and customer-related information. If a construction service pr ovided by the Company is satisfied over time, the revenue
should be recognized based on performance progress over time, except that the performance progress cannot be determined
reasonably. The performance progress is generally measured by the proportion of accumulative actual contract costs incurred against
the expected total contract costs. If the performance progress cannot be determined reasonably, and the Company expects that the
costs incurred can be compensated, the revenue shall be recognized at the amount of costs incurred until the progress can be
determined reasonably.
Pursuant to the contractual provisions of the PPP project, during the project operation, the Company has the right to collect
payments from the recipient of public goods and services, but such right shall not be an unconditional collection right if the payment
amount is uncertain. When the PPP project assets reach their expected usable conditions, the amount of consideration of relevant PPP
project assets or recognized amount of construction revenue is recognized as an intangible asset and subject to the accounting
treatment specified in the Accounting Standards for Business Enterprises No. 6 – Intangible Assets.
Pursuant to the contractual provisions of the PPP project, during the project operation, if the conditions for collection can be met,
the cash of a definite amount (other financial asset) is recognized as accounts receivable when the Company has the right to collect
such consideration (which depends only on the passage of time), and subject to the accounting treatment specified in the Accounting
Standards for Business Enterprises No. 22 – Financial Instruments: Recognition and Measurement. When the PPP project assets
reach their expected usable conditions, the difference of t he amount of consideration of relevant PPP project assets or the recognized
amount of construction revenue in excess of the cash of a definite amount (or other financial asset) is recognized as an inta ngible
asset.
If the amount of consideration of relevant PPP project assets or recognized amount of construction revenue is recognized as an
intangible asset, the contract assets recognized during the construction are presented under "intangible assets" in the balance sheet;
other contract assets recognized during the construction, depending on whether they will be realized within one year from the
balance-sheet date, are presented under "contract assets" or "other non-current assets" in the balance sheet.
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When the PPP project assets reach their expected usable conditions, the Company recognizes revenue related to operation
services according to the Accounting Standards for Business Enterprises No. 14 – Revenue.
2. Basis of the adoption of hedging accounting and accounting treatment
(1) Hedge includes fair value hedge, cash flow hedge and hedge of net investment in foreign operation.
(2) A hedge may qualify for hedge accounting if all the following conditions are met: 1) the hedging relationship consists on ly
of eligible hedging instruments and eligible hedged instruments; 2) at the inception of the hedge, the Company formally designates
hedging instruments and hedged item, and prepares the written documentation of the hedging relationship and the Company’s ris k
management strategy and objective for undertaking the hedge; 3) the hedging relationship meets the hedging effectiveness
requirements.
The Company recognizes that a hedging relationship meets the effectiveness requirements if the all the followings are
simultaneously satisfied: 1) there is an economic relat ionship between the hedged item and the hedging instruments; 2) the effect of
credit risk does not dominate the value changes that result from that economic relationship between the hedged item and the hedging
instruments; 3) the hedge ratio of the hedging relationship is the equal to the ratio of the quantity of the hedged item that the
Company actually hedges and the actual number of hedging instruments to hedge them, but does not reflect an imbalance between
the weightings of the hedged item and the hedging instrument.
The Company shall assess whether a hedging relationship meets the hedge effectiveness requirements on the hedge inception
date and on an ongoing basis. If a hedging relationship ceases to meet the hedge effectiveness requirements due to the hedge ratio but
the risk management objective for that designated hedging relationship remains the same, the Company shall rebalance the hedg ing
relationship.
(3) Accounting treatment of hedges
1) Fair value hedges
① Gain or loss on the hedging instrument shall be recognized in profit or loss. If a hedging instrument hedges a non-trading
equity instrument (or a component thereof) at fair value through other comprehensive income, gain or loss on the hedging instrument
may be recognized in other comprehensive income.
② The gain or loss on a hedged item arising from risk exposure should be recognized in profit or loss, and meanwhile the
carrying amount of the recognized hedged item which is not measured at fair value should be adjusted. If a hedged item is a f inancial
asset (or a component thereof) that is measured at fair value with changes included in other comprehensive income according to the
classification in Article 18 of the Accounting Standards for Business Enterprises No. 22 - Financial Instruments: Recognition and
Measurement, the gain or loss arising from the hedged risk exposure shall be recognized in profit or loss, with its carrying amount
being unadjusted because it has already been measured at fair value; if the hedged item is a non-trading equity instrument (or a
component thereof) for which the Company has elected to present changes at fair value with changes included in other
comprehensive income, the gain or loss arising from risk exposure on the hedged item shall be recognized in other compre hensive
income, with carrying amount being unadjusted because it has already been measured at fair value.
When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in the fair value of
the hedged item after its designation shall be recognized as an asset or a liability with a corresponding gain or loss being recognized
in profit or loss for each period. When a firm commitment is performed to acquire an asset or assume a liability, the initially
recognized amount of the asset or the liability is adjusted to include the cumulative change in the fair value of the hedged item that
was previously recognized.
For a hedged item that is a financial instrument (or a component thereof) measured at amortized cost, any adjustment made by
the Company on the carrying amount of the hedged item shall be amortized to profit or loss based on a recalculated effective interest
rate on the date that amortization begins. If a financial asset (or a component thereof) that is a hedged item and that is measured at
fair value with changes included in other comprehensive income according to the classification in Article 18 of the Accountin g
Standards for Business Enterprises No. 22 - Financial Instruments: Recognition and Measurement, amortization applies in the same
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manner but to the amount that represents the cumulative gain or loss previously recognized, which shall be subsequently recognized
in profit or loss, instead of by adjusting the carrying amount of the financial asset (or a componen t thereof).
2) Cash flow hedges
① The portion of the gain or loss on the hedging instrument that belongs to an effective hedge shall be recognized in other
comprehensive income as cash flow hedge reserve, while the ineffective portion shall be recognized in profit or loss. The cash flow
hedge reserve shall be recognized at the lower of the following (in absolute amounts): A. the cumulative gain or loss on the hedging
instrument from the inception of the hedge; and B. the cumulative change in the present value of the expected future cash flows of
the hedged item from the inception of the hedge.
② If a hedged item is a forecast transaction that subsequently results in the recognition of a non-financial asset or non-financial
liability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which the
fair value hedge accounting is applied, the Company shall transfer out the amount of cash flow hedge reserve previously recognized
in other comprehensive income, and include it in the initially recognized amount of the asset or the liability.
③ For other cash flow hedges, the amount of cash flow hedge reserve previously recognized in other comprehensive income
shall be transferred out into profit or loss in the same period the hedged forecast sale affects profit or loss.
3) Hedges of net investment in foreign operation
The portion of gain or loss on the hedging instrument that belongs to an effective hedge is recognized in other comprehensive
income, and rec lassified from other comprehensive income to profit or loss on the disposal of the foreign operation; and the
ineffective portion is recognized in profit or loss.
3. Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding its employees, if the
purchased shares are to be kept as treasury shares at the actually paid amount, and recorded and registered for reference. If the
repurchased shares are to be canceled, the capital reserve is reduced according to the difference between the book value of shares
canceled plus the total book value calculated by the number of shares canceled and the amount paid for the actual repurchase, or the
retained earnings are reduced when the capital reserve is not sufficient. If the reward of repurchased shares to the Company's
employees is the share-based payment settled by equity, when the employee exercises the stock purchase right and the company
receives the payment, the cost of treasury shares granted to employees and capital reserve (other capital reserve) accumulated are to
be written off, and the capital reserve (share premium) is adjusted according to the difference.
44. Significant changes in accounting policies and estimates
(1) Significant changes in accounting policies
√ Applicable □ Not Applicable
Content of and reason for the changes in accounting policies Approval procedures Remarks
The revised Accounting Standard for Business Enterprises No. 21 — Leasing
Approved by the Please refer to the
has been implemented since January 1, 2021 (hereinafter referred to as "the
Company's management statements for details
first implementation date")
The Interpretation No. 14 of the Accounting Standards for Business
Approved by the Please refer to the
Enterprises issued by the Ministry of Finance has been implemented since
Company's management statements for details
January 26, 2021
The Company has, since December 31, 2021, implemented the Interpretation
Approved by the Please refer to the
No. 15 of the Accounting Standards for Business Enterprises "Presentation of
Company's management statements for details
Centralized Fund Management" issued by the Ministry of Finance
Accounting policy changes caused by variations in the accounting standards for business enterprises
1. The Company has implemented the revised Accounting Standard No. 21 for Business Enterprises—Leasing (hereinafter
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referred to as the "New Leasing Standard") since 1 January 2021 (hereinafter referred to as the first implementation date).
(1) For existing contracts prior to the first implementation date, the Company has chosen not to reassess whether they are le ases
or contain leases.
(2) For leases in which the Company is the lessee, the Company has adjusted the amount of retained earnings and other related
items in the financial statements at the beginning of the reporting period based on the cumulative effects of the first imple mentation
date of the new leasing standard and the previous standard, without adjusting the information for comparable periods. The specific
process was as follows:
For finance leases prior to the first implementation date, the Company measured the right-of-use assets and lease liabilities
respectively at the original carrying amounts of the finance lease assets and finance lease payables on the first implementation date.
For operating leases prior to the first implementation date, the Company measured the lease liabilities on the first
implementation date based on the present value of the remaining lease payments discounted at the Company's incremental borrowing
rate as of the first implementation date, and measured the right-of-use assets based on an amount equal to the lease liabilities, with
necessary adjustments for prepaid rentals.
On the first implementation date, the Company conducted impairment tests on right-of-use assets and accounted for them
accordingly as per Note 3(2) to the Financial Statements.
1) The major effects of implementing the new leasing standard on the financial statements as of January 1, 2021:
Balance sheet
Item December 31, 2020 New leasing standard January 1, 2021
Effects
Right-of-use assets 30,945,067.78 30,945,067.78
Non-current liabilities due within 150,862,201.57 7,701,219.17 158,563,420.74
one year
Lease liabilities 23,243,848.61 23,243,848.61
2) The weighted average of the Company's incremental borrowing rate used for the lease liabilities recorded in the balance sheet
on the first implementation date was 4.65%.
3) Simplified treatment of operating leases prior to the first implementation date
① For leases completed within 12 months from the first implementation date, the Company applied the simplified approach and
did not recognize right-of-use assets and lease liabilities;
② The Company used the same discount rate for lease contracts with similar characteristics when measuring the lease liability;
③ The measurement of right-of-use assets did not include initial direct costs;
④ The Company determined the lease term based on the actual exercise of the renewal option or termination option prior to the
first implementation date and other updates;
The above simplified treatment has no significant impact on the Company's financial statements.
(3) For operating lease contracts for low-value assets that existed prior to the first implementation date, the Company adopted
the simplified approach of not recognizing right-of-use assets and lease liabilities and accounting for them as per the new leasing
standard from the first implementation date.
(4) Leases for which the Company is the lessor were accounted for as per the new leasing standard from the first implementation
date.
(5) Treatment of existing sale and leaseback transactions prior to the first implementation date
For sale and leaseback transactions existing prior to the first implementation date, the Company did not reassess on the first
implementation date whether the transfer of assets was in conformity with the provisions of Accounting Standard for Business
Enterprises No. 14 – Revenue for accounting as a sale.
For sale and leaseback transactions accounted for as sales and finance leases prior to the first implementation date, the Company,
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as the seller (lessee), accounted for the leasebacks in the same manner as other finance leases existing on the first implementation
date and continued to amortize the related deferred revenue or loss over the lease term.
For sale and leaseback transactions accounted for as sales and operating leases prior to the first implementation date, the
Company, as the seller (lessee), accounted for the leasebacks in the same manner as other operating leases existing on the first
implementation date, and adjusted the right-of-use assets for the related deferred revenue or loss recorded in the balance sheet prior
to the first implementation date.
2. The Company has implemented, since January 26, 2021, Interpretation No. 14 of the Accounting Standards for Business
Enterprises (hereinafter referred to as Interpretation No. 14) issued in 2021 by the Ministry of Finance.
The Company retroactively adjusted the contracts of relevant PPP projects that commenced before December 31, 2020, and had
not been completed by the effective date of Interpretation No. 14, and the amount of relevant projects in the financial statements at
the beginning of 2021 based on the cumulative effects, without adjusting the information for comparable periods. The major ef fects
of the adjustment on the Company's financial statements as of January 1, 2021:
Item Balance sheet
December 31, 2020 Effects January 1, 2021
Construction in progress 1,782,529,087.95 -1,711,793,604.00 70,735,483.95
Intangible assets 3,163,935,814.41 1,711,793,604.00 4,875,729,418.41
3. The Company has implemented the Interpretation No. 15 of the Accounting Standards for Business Enterprises "Presentation
of Centralized Fund Management" issued by the Ministry of Finance since December 31, 2021, and such change in accounting
policies has no impact on the Company's financial statements.
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
(3) The first implementation of the new leasing standard to adjust the year-beginning financial statement
items since 2021
√ Applicable □ Not Applicable
Whether to adjust the year-beginning balance sheet items
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Adjustment due to the
Item December 31, 2020 January 1, 2021 implementation of the revised
revenue standard
Current Assets:
Cash and bank balances 5,904,127,970.85 5,904,127,970.85
Deposit reservation for
balance
Lending to banks and
other financial institutions
Held-for-trading
128,017,735.11 128,017,735.11
financial assets
Derivative financial
assets
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Notes receivable 64,663,544.98 64,663,544.98
Accounts receivable 5,564,834,864.04 5,564,834,864.04
Financing from
520,429,874.86 520,429,874.86
accounts receivables
Prepayments 137,769,198.53 137,769,198.53
Premiums receivable
Reinsurance accounts
receivable
Reinsurance reserve
receivable
Other receivables 257,670,998.28 257,670,998.28
Including: Interest
receivable
Dividends
receivable
Financial assets
purchased under resale
agreement
Inventories 1,305,177,407.85 1,305,177,407.85
Contract assets 170,840,655.62 170,840,655.62
Held-for-sale assets
Non-current assets due
1,157,997,329.53 1,157,997,329.53
within one year
Other current assets 524,859,055.94 524,859,055.94
Total current assets 15,736,388,635.59 15,736,388,635.59
Non-current assets:
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables 1,063,292,418.65 1,063,292,418.65
Long-term equity
318,243,332.69 318,243,332.69
investments
Other entity instrument
26,070,000.00 26,070,000.00
investments
Other non-current
financial assets
Investment properties 2,009,006.98 2,009,006.98
Fixed assets 1,640,546,747.67 1,640,546,747.67
Construction in
1,782,529,087.95 70,735,483.95 1,711,793,604.00
progress
Bearer biological assets
Oil and gas assets
Right-of-use assets 30,945,067.78 -30,945,067.78
Intangible assets 3,163,935,814.41 4,875,729,418.41 -1,711,793,604.00
Development
4,449,066.69 4,449,066.69
expenditure
Goodwill 6,170,809,035.86 6,170,809,035.86
Long-term deferred
12,703,802.65 12,703,802.65
expenses
Deferred tax assets 95,270,882.31 95,270,882.31
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Other non-current
94,289,159.43 94,289,159.43
assets
Total non-current
14,374,148,355.29 14,405,093,423.07 -30,945,067.78
Assets
Total assets 30,110,536,990.88 30,141,482,058.66 -30,945,067.78
Current liabilities:
Short-term borrowings 1,657,905,376.55 1,657,905,376.55
Borrowings from the
Central Bank
Borrowings from banks
and other financial
institutions
Held-for-trading
810,300.00 810,300.00
financial liabilities
Derivative financial
liabilities
Notes payable 3,853,175,394.09 3,853,175,394.09
Accounts payable 3,404,825,085.03 3,404,825,085.03
Advance receipts
Contract liabilities 181,051,683.90 181,051,683.90
Financial assets sold
under repurchase agreement
Absorbing deposit and
due to placements with banks
and other financial
institutions
Receivings from
vicariously traded securities
Receivings from
vicariously sold securities
Employee benefits
321,861,989.64 321,861,989.64
payable
Taxes payable 372,514,942.66 372,514,942.66
Other payables 443,477,082.48 443,477,082.48
Including: Interest
payable
Dividends payable
Fees and commissions
payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities
150,862,201.57 158,563,420.74 -7,701,219.17
due within one year
Other current liabilities 55,106,039.73 55,106,039.73
Total current liabilities 10,441,590,095.65 10,449,291,314.82 -7,701,219.17
Non-current liabilities:
Insurance contract
reserves
Long-term borrowings 765,643,457.78 765,643,457.78
Bonds payable 1,199,466,109.60 1,199,466,109.60
Including:
Preference shares
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Perpetual bonds
Lease liabilities 23,243,848.61 -23,243,848.61
Long-term payables 255,735,814.91 255,735,814.91
Long-term employee
benefits payable
Estimated liabilities 1,461,553.82 1,461,553.82
Deferred income 96,734,819.84 96,734,819.84
Deferred income tax
78,884,957.38 78,884,957.38
liabilities
Other non-current
liabilities
Total Non-current Liabilities 2,397,926,713.33 2,421,170,561.94 -23,243,848.61
Total liabilities 12,839,516,808.98 12,870,461,876.76 -30,945,067.78
Owner's equity:
Share capital 3,163,062,146.00 3,163,062,146.00
Other equity instruments 266,939,831.65 266,939,831.65
Including: Preference
shares
Perpetual bonds
Capital reserve 9,707,741,876.49 9,707,741,876.49
Less: Treasury shares 8,920,597.83 8,920,597.83
Other comprehensive
income
Special reserve
Surplus reserve 232,701,943.56 232,701,943.56
General risk reserve
Retained profits 3,558,688,885.55 3,558,688,885.55
Total owners' equity
attributable to equity holders 16,920,214,085.42 16,920,214,085.42
of the Parent Company
Minority interests 350,806,096.48 350,806,096.48
Total owners' equity 17,271,020,181.90 17,271,020,181.90
Total liabilities and owners'
30,110,536,990.88 30,141,482,058.66 -30,945,067.78
equity
Adjustment description
Parent company balance sheet
Unit: RMB
Adjustment due to the
Item December 31, 2020 January 1, 2021 implementation of the revised
revenue standard
Current Assets:
Cash and bank balances 1,279,695,772.57 1,279,695,772.57
Held-for-trading
126,075,691.90 126,075,691.90
financial assets
Derivative financial
assets
Notes receivable
Accounts receivable
Financing from
528,356,236.97 528,356,236.97
accounts receivables
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Prepayments
Other receivables 3,095,331,754.24 3,095,331,754.24
Including: Interest
receivable
Dividends
50,000,000.00 50,000,000.00
receivable
Inventories
Contract assets
Held-for-sale assets
Non-current assets due
337,148,608.96 337,148,608.96
within one year
Other current assets
Total current assets 5,366,608,064.64 5,366,608,064.64
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity
16,694,341,699.36 16,694,341,699.36
investments
Other entity instrument
26,070,000.00 26,070,000.00
investments
Other non-current
financial assets
Investment properties
Fixed assets
Construction in
progress
Bearer biological assets
Oil and gas assets
Right-of-use assets 2,966,591.85 -2,966,591.85
Intangible assets 3,395,200.95 3,395,200.95
Development
expenditure
Goodwill
Long-term deferred
1,155,903.84 1,155,903.84
expenses
Deferred tax assets
Other non-current
assets
Total non-current Assets 16,724,962,804.15 16,727,929,396.00 -2,966,591.85
Total assets 22,091,570,868.79 22,094,537,460.64 -2,966,591.85
Current liabilities:
Short-term borrowings 600,733,518.18 600,733,518.18
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable
Accounts payable 3,899,667.53 3,899,667.53
Advance receipts
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Contract liabilities
Employee benefits
8,700,968.00 8,700,968.00
payable
Taxes payable 12,475,208.42 12,475,208.42
Other payables 753,207,113.25 753,207,113.25
Including: Interest
payable
Dividends
payable
Held-for-sale liabilities
Non-current liabilities
1,194,082.62 -1,194,082.62
due within one year
Other current liabilities
Total current liabilities 1,379,016,475.38 1,380,210,558.00 -1,194,082.62
Non-current liabilities:
Long-term borrowings
Bonds payable 1,199,466,109.60 1,199,466,109.60
Including:
Preference shares
Perpetual bonds
Lease liabilities 1,772,509.23 -1,772,509.23
Long-term payables 3,000,000.00 3,000,000.00
Long-term employee
benefits payable
Estimated liabilities 218,598.02 218,598.02
Deferred income 350,000.00 350,000.00
Deferred income tax
30,762,849.39 30,762,849.39
liabilities
Other non-current
liabilities
Total Non-current Liabilities 1,233,797,557.01 1,235,570,066.24 -1,772,509.23
Total liabilities 2,612,814,032.39 2,615,780,624.24 -2,966,591.85
Owner's equity:
Share capital 3,163,062,146.00 3,163,062,146.00
Other equity
266,939,831.65 266,939,831.65
instruments
Including:
Preference shares
Perpetual bonds
Capital reserve 15,356,688,889.72 15,356,688,889.72
Less: Treasury
8,920,597.83 8,920,597.83
shares
Other
comprehensive income
Special reserve
Surplus reserve 198,481,554.14 198,481,554.14
Retained profits 502,505,012.72 502,505,012.72
Total owners' equity 19,478,756,836.40 19,478,756,836.40
Total liabilities and owners'
22,091,570,868.79 22,094,537,460.64 -2,966,591.85
equity
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Adjustment description
(4) Retrospectively restated datum of the previous period since the first adoption of new accounting
standards governing leases in 2021
□ Applicable √ Not Applicable
45. Others
VI. Taxes
1. Main taxes and tax rates
Taxes Tax basis Tax rates
The output tax calculated based on the
revenue from sales of goods or rendering
3%, 6%, 9%, 13%. Exported goods are
of services in accordance with the tax law,
Value-added tax (VAT) subject to "exemption, credit, refund"
net of the input tax that is allowed to be
policies, with refund rate of 10% or 13%.
deducted in the current period, the
difference is the amount of the VAT due
Urban maintenance and construction tax Turnover tax actually paid 7%, 5%
Enterprise income tax Taxable income 15%, 20%, 25%
For housing property levied on the basis of
price, housing property tax is levied at the
rate of 1.2% of the balance after deducting
Housing property tax 30% of the cost; for housing property 1.2%, 12%
levied on the basis of rent, housing
property tax is levied at the rate of 12% of
rent revenue.
Education surcharge Turnover tax actually paid 3%
Local education surcharge Turnover tax actually paid 2%, 1%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
Infore Technology Company 15%
Zhejiang Shangfeng Special Blower Industrial Co., Ltd. 15%
Liaoning Donggang Magnetic Wire Co., Ltd. 15%
Guangdong Wellkey Electric Material Co., Ltd. 15%
Anhui Wellkey Electric Material Co., Ltd. 15%
Zoomlion Environmental 15%
Foshan Shunde Huaqingyuan Environmental Protection Co., Ltd. 15%
Fengyun IoT Technology Co., Ltd. 15%
Foshan Shunde Huabo Environmental Water Co., Ltd. 20%
Dingnan Zoomlion Environmental Industry Co., Ltd. 20%
Huichang Zoomlion Environmental Industry Co., Ltd. 20%
Huachuan Zhongfeng Urban Environmental Service Co., Ltd. 20%
Heze Yingsheng Environmental Sanitation Service Co., Ltd. 20%
Shenzhen Yinglian Environmental Industry Co., Ltd. 20%
Qixian Tongying Environmental Sanitation Service Co., Ltd. 20%
Shengzhou Yinghe Environmental Sanitation Management Co., 20%
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Ltd.
Shengzhou Zoomlion Environmental Engineering Co., Ltd. 20%
Pu'an Yinghe Environmental Sanitation Management Co., Ltd. 20%
Susong Yinghe Environmental Sanitation Management Co., Ltd. 20%
Liaocheng Yinghe Environmental Sanitation Service Co., Ltd. 20%
Changsha Zoomlion Environmental Industry Co., Ltd. Chengdu
20%
Branch
Shenzhen Tongying Environmental Industry Co., Ltd. 20%
Shenzhen Zhongfu Environmental Technology Co., Ltd. 20%
Jian' ou Yingsheng Environmental Sanitation Management Co.,
20%
Ltd.
Yichang Yinglian Urban Environmental Service Co., Ltd. 20%
Wuhan Infore Zhonghui Environmental Protection Technology
20%
Co., Ltd.
Wuhan Tongying Environmental Sanitation Management Co.,
20%
Ltd.
Shenzhen Yingli Environmental Sanitation Service Co., Ltd. 20%
Binchuan Zhongying Environmental Service Co., Ltd. 20%
Heping Hesheng Environmental Sanitation Service Co., Ltd. 20%
Suzhou Xiangcheng Yinglian Environmental Industry Co., Ltd. 20%
Foshan Gaoming Yingde Smart City Management Co., Ltd. 20%
Foshan Liansheng Environmental Sanitation Service Co., Ltd. 20%
Fengxian Zhongying Urban Environmental Sanitation
20%
Management Co., Ltd.
Taxpayers other than the above-mentioned 25%
2. Tax preferential policies
1. Enterprise income tax
No. Company Tax preferences
Zhejiang Shangfeng Special Blower Industrial Co., Ltd., Infore According to the preferential income tax policy
1 Technology Company, Guangdong Wellkey Electric Material Co., Ltd., for high-tech enterprises, its 2019-2021 enterprise
Foshan Shunde Huaqingyuan Environmental Protection Co., Ltd. income tax rate is reduced to 15%.
According to the preferential income tax policy
Zoomlion Environmental, Fengyun IoT Technology Co., Ltd., Liaoning
2 for high-tech enterprises, its 2020-2022 enterprise
Donggong Magnet Wire Co., Ltd.
income tax rate is reduced to 15%.
According to the preferential income tax policy
3 Anhui Wellkey Electric Material Co., Ltd. for high-tech enterprises, its 2021-2023 enterprise
income tax rate is reduced to 15%.
Engage in qualified environmental protection,
energy-saving and water-saving projects, it
Shimen Zoomlion Environmental Industry Co., Ltd., Huaian Chenjie
4 enjoys enterprise income tax exemption in 2016-
Environmental Engineering Co., Ltd.
2018, and enjoys a 50% reduction in income for
2019-2021.
Funan Greenlander Environmental Energy Co., Ltd., Hanshou Zoomlion
Engage in qualified environmental protection,
Environmental Industry Co., Ltd.*, Zhongfang County Zoomlion
energy-saving and water-saving projects, it
Environmental Industry Co., Ltd., Anhua Zoomlion Environmental
5 enjoys enterprise income tax exemption in 2017-
Industry Co., Ltd., Cili County Zoomlion Huabao Environmental
2019, and enjoys a 50% reduction in income for
Industry Co., Ltd., Longhui County Zoomlion Environmental Industry
2020-2022.
Co., Ltd.
Xiantao Greenlander Environmental Power Generation Co., Ltd., Engage in qualified environmental protection,
Shouxian Greenlander New Energy Co., Ltd., Zhangjiajie Zoomlion energy-saving and water-saving projects, it
6 Environmental Industry Co., Ltd., Huayuan Zoomlion Environmental enjoys enterprise income tax exemption in 2018-
Industry Co., Ltd., Fusui Zhongfeng Environmental Industry Co., Ltd., 2020, and enjoys a 50% reduction in income for
Shangsi Zoomlion Environmental Industry Co., Ltd., Ningyuan County 2021-2023.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Zoomlion Environmental Industry Co., Ltd., Lianping Zoomlion J iabao
Environmental Industry Co., Ltd., Hongjiang District Zhongfeng
Environmental Industry Co., Ltd., Meishan Pengshan Zhongfeng
Environmental Industry Co., Ltd., Liling Yingfeng Zoomlion
Environmental Industry Co., Ltd.
Changsha Zoomlion Changgao Environmental Industry Co., Ltd.,
Xiantao Yinghe Environmental Protection Co., Ltd., Kaili Zoomlion
Environmental Industry Co., Ltd., Loudi Zoomlion Huabao
Environmental Protection Technology Co., Ltd., Changsha Juzhou
Zoomlion Environmental Industry Co., Ltd., Duchang County
Zhongfeng Environmental Industry Co., Ltd., Anlong Ninghe
Environmental Protection Technology Co., Ltd., Fushun Yingfeng
Zoomlion Urban Environmental Sanitation Management Co., Ltd.,
Renshou Infore Zoomlion Urban Environmental Service Co., Ltd.,
Yichun Yinglian Urban Environmental Service Co., Ltd., Songyuan Engage in qualified environmental protection,
Zoomlion Xinyu Environmental Service Co., Ltd., Ganzhou Rongjiang energy-saving and water-saving projects, it
7 New Area Zhongfeng Environmental Technology Co., Ltd., Quyang enjoys enterprise income tax exemption in 2019-
Yinglian Environmental Service Co., Ltd., Chengdu Yinglian 2021, and enjoys a 50% reduction in income for
Environmental Management Co., Ltd., Qixian Yinglian Urban 2022-2024.
Environmental Service Co., Ltd., Fujian Nan’an Yingfeng Urban
Environmental Service Co., Ltd., Gucheng Yinglian Urban
Environmental Service Co., Ltd., Huaibei Yinglian Urban Environmental
Service Co., Ltd., Huaibei Zhongfeng Urban Environmental Service Co.,
Ltd., Jishan County Yinglian Urban Environmental Service Co., Ltd.,
Tangshan Caofeidian District Yinglian Environmental Service Co., Ltd.,
Anyi County Zhongfeng Environmental Industry Co., Ltd., Changsha
Zhongfeng Environmental Protection Technology Co., Ltd., Shenzhen
Yinglian Urban Environmental Service Co., Ltd.
Tongren Bijiang District Zhongfeng Environmental Industry Co., Ltd.,
Baise Yinglian Urban Environmental Service Co., Ltd., Chongqing
Yinglian City Sanitation Service Co., Ltd., Donglan Yinglian Urban
Environmental Service Co., Ltd., XiantaoYinglian Environmental
Technology Co., Ltd., Anhua Yingsheng Environmental Sanitation
Service Co., Ltd., Shenzhen Bao’an Yinglian City Service Co., Ltd.,
Shaoyang County Zhongfeng Environmental Industry Co., Ltd., Tangyin
County Yinglian Environmental Service Co., Ltd., Xi’an Yinglian Urban
Environmental Service Co., Ltd., Yangbi Zhongying Environmental
Services Co., Ltd., Rongcheng County Yinglian Urban Environmental
Service Co., Ltd., Infore Zoomlion City Environmental Service Co.,
Ltd., Zhaoyuan County Jincheng Environmental Sanitation Management
Engage in qualified environmental protection,
Service Co., Ltd., Ji’an Zhongfeng Environmental Technology Co., Ltd.,
energy-saving and water-saving projects, it
Anshan Yinglian Urban Environmental Sanitation Management Co.,
8 enjoys enterprise income tax exemption in 2020-
Ltd., Luannan County Yinglian Environmental Management Co., Ltd.,
2022, and enjoys a 50% reduction in income for
Guangxi Guiping Yinghe Environmental Sanitation Management Co.,
2023-2025.
Ltd., Shennongjia Forest Area Yinghe Environmental Sanitation
Management Co., Ltd., Foshan Shunde District Yinghe Urban
Environmental Service Co., Ltd., Foshan Shunde District Lianying
Environmental Development Co., Ltd., Foshan Yingshun Urban
Environmental Service Co., Ltd., Zaozhuang Yinglian Urban
Environmental Service Co., Ltd., Zaozhuang Zhongying Urban
Environmental Service Co., Ltd., Daqing Saertu District Zoomlion
Environmental Development Co., Ltd., Jilin Zhongfeng Oasis
Environmental Development Co., Ltd., Lai’an Zhongfeng Environmental
Technology Co., Ltd., Lanling Zoomlion Environmental Service Co.,
Ltd., Yuncheng Zhongying City Environmental Service Co., Ltd., Suqian
Lianying City Service Co., Ltd.
Poyang Greenlander Renewable Energy Co., Ltd., Biyang County
Fenghe New Energy Power Co., Ltd., Jiayu Xingzhou Water Treatment
Technology Co., Ltd. , Xianghe Yinglian Environmental Technology
Engage in qualified environmental protection,
Co., Ltd., Renshou Yinglian Urban and Rural Environmental Sanitation
energy-saving and water-saving projects, it
Service Co., Ltd., Liucheng Yinglian Environmental Sanitation
9 enjoys enterprise income tax exemption in 2021-
Management Co., Ltd., Chongqing Zhongying Environmental Sanitation
2023, and enjoys a 50% reduction in income for
Service Co., Ltd., Tongbai Tongying Environmental Sanitation
2024-2026.
Development Co., Ltd., Yiyang Yinglian Environmental Sanitation
Management Co., Ltd., Chongyang Yinglian Environmental Protection
Co., Ltd., Xiangtan Yinglian Environmental Industry Co., Ltd., Jinzhou
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Yinglian Urban Environmental Sanitation Management Co., Ltd.,
Handan Yinglian Environmental Sanitation Management Co., Ltd.,
Wuhai Yinglian Environmental Engineering Co., Ltd., Zongyang
Tongying Environmental Sanitation Management Co., Ltd., Ordos
Environmental Sanitation Management Co., Ltd., Luanzhou Yinglian
Environmental Service Co., Ltd., Wanning Yinglian Environmental
Industry Co., Ltd., Guangde Yinghe Environmental Sanitation
Development Co., Ltd., Weihui Yinglian Environmental Service Co.,
Ltd., Zhoushan Yinghe Environmental Sanitation Service Co., Ltd.,
Baisha Yinghe Environmental Sanitation Service Co., Ltd.,, Shouxian
Liansheng Environmental Sanitation Management Co., Ltd., Fos han
Shude Yinghong Smart Environmental Sanitation Management Co.,
Ltd., Foshan Shunde Yingsheng Urban Environment Management Co.,
Ltd., Zhongshan Yinglian Urban Environment Management Co., Ltd.
Xinning Lianying Urban Environmental Service Co., Ltd. , , Fenghuang
Lianying Environmental Service Co., Ltd. , Huayuan Environmental
Sanitation Management Co., Ltd., Nanchang Yingsheng Environment
Protection Service Co., Ltd., Zhongwei Yinglian Urban Environmental
Engaged in qualified environmental protection,
Service Co., Ltd., Huaibei Yinghe Urban Environmental Service Co.,
energy-saving and water-saving projects, it
Ltd., Guangrao Yinghe Urban Service Co., Ltd., Foshan Gaoming
10 enjoys three-year-exemption and three-year-half-
Yingde Smart Urban Administration Co., Ltd., Changde Zelian
reduction policy for enterprise income tax since
Environmental Service Co., Ltd., Yongshun Zhongfeng Jingtou
the year in which it generates its first income.
Environmental Technology Co., Ltd., Chongqing Tongliang Fenglan
Environmental Technology Co., Ltd., Hnashou Jinglan Environment
Protection Co., Ltd., Lu'an Zhongfeng Urban Environmental Service
Co., Ltd.
Foshan Shunde Huabo Environmental Water Co., Ltd., Dingnan
Zoomlion Environmental Industry Co., Ltd., Huichang Zoomlion
Environmental Industry Co., Ltd., Huachuan Zhongfeng Urban
Environmental Service Co., Ltd., Heze Yingsheng Environmental
Sanitation Service Co., Ltd., Shenzhen Yinglian Environmental Industry
Co., Ltd., Qixian Tongying Environmental Sanitation Service Co., Ltd., According to Announcement of the State
Shengzhou Yinghe Environmental Sanitation Management Co., Ltd., Taxation Administration on Implementing the
Shengzhou Zoomlion Environmental Engineering Co., Ltd., Puan Preferential Income Tax Policies for Micro and
Yinghe Environmental Sanitation Management Co., Ltd., Susong Yinghe Small Enterprises and Individual Industrial and
Environmental Sanitation Management Co., Ltd., , Liaocheng Yinghe Commercial Households (2021) No.12, from
Environmental Sanitation Service Co., Ltd., Changsha Zoomlion January 1, 2021 to December 31, 2022, for small
11 Environmental Industry Co., Ltd. Chengdu Branch, Shenzhen Tongying enterprises with low profits, the income tax is
Environmental Industry Co., Ltd., Shenzhen Zhongfu Environmental calculated by applying income tax rate of 20% to
Technology Co., Ltd., Jianou Yingsheng Environmental Sanitation the adjusted taxable income, i.e. 12.5% of the
Management Co., Ltd., Yichang Lianying Urban Environmental Service portion of taxable income not exceeding RMB
Co., Ltd., Wuhan Yingfeng Zhonghui Environmental Technology Co., 1,000,000 plus 50% of the portion of taxable
Ltd., Wuhan Tongying Environmental Sanitation Management Co., Ltd., income exceeding RMB 1,000,000 but not
Shenzhen Yingli Environmental Sanitation Service Co., Ltd., Binchuan exceeding RMB 3,000,000.
Zhongying Environmental Service Co., Ltd. , Heping County Hesheng
Environmental Sanitation Service Co., Ltd., Suzhou Xiangcheng
Yinglian Environmental Industry Co., Ltd., Foshan Liansheng
Environmental Sanitation Service Co., Ltd., Fengxian Zhongying Urban
Environmental Sanitation Manageme nt Co., Ltd.
For revenue from producing the products that are
not restricted or prohibited by the state and satisfy
the national and industrial standards using the
Foshan Shunde Huaqingyuan Environmental Protection Co., Ltd.,
resources specified in the Catalogue of
Foshan Shunde Huaying Environmental Water Co., Ltd., Foshan Shunde
12 Preferential Income Tax for Enterprises Adopting
Yuanrun Water Environmental Protection Co., Ltd., Foshan Shunde
Comprehensive Utilization of Resources (2008)
Huabo Environmental Protection Co., Ltd.
as the major raw materials, only 90% of such
revenue is included in taxable income when
calculating the enterprise income tax for 2021.
According to the Implementation P lan for the
Construction of Key Development and Opening-
Up Pilot Zone in Ruili, Yunnan (Guo Ban Han
[2012] No.103), the start-up business in the pilot
13 Ruili Yinglian Environmental Industry Co., Ltd.
zone enjoys the five-year-exemption and five-
year-half-reduction policy for the portion of local
tax (40%) of the enterprise income tax,
specifically, the local tax exemption period is
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
2021 - 2025, and 50% reduction period is 2026 -
2030. For the portion of 60% state taxation, it
enjoys the policies for small enterprises with low
profit.
2. VAT
(1) According to the Notice of MOF and STA on VAT Preferential Policies for Promoting Employment of Persons with
Disabilities (Cai Shui [2016] No. 52), taxpayers who meet the conditions for enjoying preferential tax policies shall be entitled to
enjoy VAT refund upon collection within limit according to the number of persons with disabilities employed by taxpayer. For Jan. -
Feb. 2021, the subsidiary Liaoning Donggang Magnet Wire Co., Ltd. (hereinafter referred to as "Donggang Magnet Wire Company")
enjoys the preferential policy of VAT refund upon collection at the amount of RMB 59,200 per year for each disabled person
employed, and the refunded VAT upon collection totaled RMB 2,048,320.00.
(2) According to the Notice of MOF and STA on VAT Policies for Software Products (Cai Shui [2011] No. 100), general VAT
taxpayers who sell self-developed and produced software products are subject to VAT refund upon collection for the amount
exceeding 3% of their actual VAT burdens. In 2021, the subsidiaries Zoomlion Environmental and Infore Technology Company are
entitled to enjoy the VAT refund upon collection policy for its development and sale of their self-developed software products, and
the VAT refunds received in the current period are RMB 13,995,039.60 and RMB 171,688.08 respectively.
(3) According to the Notice of MoF and STA on Policies for Weighted VAT Deductions for Consumer Services (2019) No.87,
the qualified taxpayers may apply to competent tax authority for weighted deduction of input VAT. In 2021, the subsidiaries
Zoomlion Environmental and Foshan Shunde District Yuanyi Environmental Water Co., Ltd. are engaged in consumer service
related business and enjoy the weighted deduction of input VAT of RMB 2,104,520.73 and RMB 81,887.02 respectively.
(4) According to Article 5 of the Notice of MOF and STA on Printing and Distributing the “Catalogue of Preferential VAT for
Products and Services Adopting Comprehensive Utilization of Resources" (Cai Shui [2015] No. 78), since July 1, 2015 , sewage
treatment services are entitled to enjoy 70% VAT refund upon collection. In 2021, the subsidiaries Foshan Shunde Huaqingyuan
Environmental Protection Co., Ltd., Foshan Shunde Huaying Environmental Water Co., Ltd., Foshan Shunde Yuanrun Water
Environmental Protection Co., Ltd., and Foshan Shunde Huabo Environmental Protection Co., Ltd. received VAT refund upon
collection of RMB 2,412,123.35, RMB 1,746,316.53, RMB 1,707,473.76 and RMB 114,351.29 respectively.
(5) Pursuant to the Measures for the Implementation of the Pilot Implementation of VAT Reform for the Transportation Industry
and Certain Modern Service Industries (Cai Shui [2011] No. 111), revenue from technology transfer, technology development, an d
related technical consulting, and technical service businesses is exempt from VAT. In 2021, the subsidiary Shenzhen Dingzhu
Environmental Technology Co., Ltd. meets the condition and is exempt from VAT.
3. Urban land use tax
(1) According to the Notice of MOF and STA on the Urban Land Use Tax and Other Policies for Entities with Employment of
Persons with Disabilities (Cai Shui [2010] No. 121), the Donggang Magnet Wire Company, as a social welfare company, meets the
requirement of temporary exemption of land use tax. After confirmation with Beijingzi Local Taxation Bureau of Donggang Local
Taxation Bureau, it is exempt from land use tax in Jan. - Feb. 2021.
(2) According to Opinions on Deepening the Reform of Optimal Allocation of Resource Elements for Manufacturing
Enterprises (Zhe Zheng Ban Fa [2019] No.62) of General Office of the People's Government of Zhejiang Province, the subsidiary
Zhejiang Shangfeng Special Blower Industrial Co., Ltd. satisfy the conditions for preferential tax and enjoys 100% exemption of land
use tax in 2021.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
3. Others
VII. Notes to items in the consolidated financial statements
1. Cash and bank balances
Unit: RMB
Item Closing balance Opening balance
Cash on hand 89,806.02 147,826.76
Bank deposits 4,190,857,415.70 5,334,320,758.07
Other cash and bank balances 392,298,149.30 569,659,386.02
Total 4,583,245,371.02 5,904,127,970.85
Including: Total amount deposited
4,464,479.35 4,585,104.79
overseas
Other statements
1) Closing balance of bank deposits included certificate of deposits in amount of RMB 67,743,888.90, funds frozen due to
lawsuits in amount of RMB 1,109,678.44, and engineering escrow accounts that are not available for separate use in amount of RMB
3,632,809.64, which were restricted for use.
2) Closing balance of other cash and bank balances included deposit for notes amounting to RMB 304,539,128.51, deposit for
letters of guarantee amounting to RMB 86,544,774.72, deposit for migrant workers' wages amounting to RMB 925,205.09, and ETC
deposit amounting to RMB 3,000.00, which were restricted for use.
2. Held-for-trading financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through profit
128,017,735.11
or loss
Including:
Equity instrument investments 127,192,985.11
Derivative financial assets 824,750.00
Including:
Total 128,017,735.11
3. Derivative financial assets
□ Applicable √ Not Applicable
4. Notes receivable
(1) Notes receivable presented by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance 6,412,054.79
172
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Commercial acceptance 47,990,598.46 64,663,544.98
Total 54,402,653.25 64,663,544.98
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Provision Carrying Provision Carrying
Amount Ratio Amount proportio amount Amount Ratio Amount proportio amount
n n
Including:
Notes receivable for
which bad debt 57,247,0 2,844,37 54,402,65 67,804,65 3,141,108.1 64,663,54
100.00% 4.97% 100.00% 4.63%
provision is assessed 27.23 3.98 3.25 3.12 4 4.98
collectively
Including:
6,412,05 6,412,054
Bank acceptance 11.20% 0.00 0.00%
4.79 .79
Commercial 50,834,9 2,844,37 47,990,59 67,804,65 3,141,108.1 64,663,54
88.80% 5.60% 100.00% 4.63%
acceptance 72.44 3.98 8.46 3.12 4 4.98
57,247,0 2,844,37 54,402,65 67,804,65 3,141,108.1 64,663,54
Total 100.00% 4.97% 100.00% 4.63%
27.23 3.98 3.25 3.12 4 4.98
Dad debt provision assessed collectively:
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Provision proportion
Bank acceptance portfolio 6,412,054.79
Commercial acceptance
50,834,972.44 2,844,373.98 5.60%
portfolio
Total 57,247,027.23 2,844,373.98 --
Description of basis for determining the portfolio:
If the bad debt provision for notes receivable is assessed using general model of expected credit loss, please disclose the bad debt
provision by reference to the disclosure of bad debt provision for other receivables:
□ Applicable √ Not Applicable
(2) Provision, recovery or reversal of bad debt for the period
Dad debt provision for the period:
Unit: RMB
Changes in the period
Category Opening balance Recovery or Closing balance
Provision Write-off Others
reversal
Commercial
acceptance 3,141,108.14 -296,734.16 2,844,373.98
portfolio
Total 3,141,108.14 -296,734.16 2,844,373.98
Significant recovery or reversal of bad debt provision for the period:
□ Applicable √ Not Applicable
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(3) The Company had no pledged notes receivable at the end of the period
(4) Notes receivable endorsed or discounted by the Company at the end of the period and yet undue at the
balance sheet date
Unit: RMB
Amount derecognized at the end of the Amount not derecognized at the end of the
Item
period period
Bank acceptance 5,050,609.92
Commercial acceptance 2,050,000.00 14,668,452.95
Total 2,050,000.00 19,719,062.87
The Company discounted part of the commercial acceptance to bank in the manner of buyout and no longer assumes the risk of
such commercial acceptance, therefore the Company derecognized aforesaid notes.
(5) Notes receivable transferred to accounts receivable due to the drawer's failure to perform its obligations
Unit: RMB
Amount transferred to accounts receivable at the end of the
Item
period
Commercial acceptance 3,013,368.24
Total 3,013,368.24
(6) There is no write-off of notes receivable in the period
5. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carryin
Provision Carrying
Provision g
Amount Ratio Amount Amount Ratio Amount proportio amount
proportion amount
n
Accounts receivable
for which bad debt 5,544,90 5,544,90 13,881,14 13,881,14
0.10% 100.00% 0.23% 100.00%
provision is assessed 2.60 2.60 3.78 3.78
individually
Of which:
Accounts receivable
4,946,7
for which bad debt 5,418,86 472,163, 5,965,218 400,383,5 5,564,834,8
99.90% 8.71% 04,963. 99.77% 6.71%
provision is assessed 8,812.39 848.68 ,384.23 20.19 64.04
71
collectively
Of which:
Accounts receivable
for which bad debt
4,461,9
provision is assessed 4,927,63 465,706, 5,761,903 397,132,5 5,364,771,2
90.93% 9.45% 27,754. 96.37% 6.89%
collectively on the 4,598.38 843.43 ,779.56 01.12 78.44
95
basis of account
aging
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Accounts receivable
for which bad debt
provision is assessed 419,134, 6,457,00 412,677 203,314,6 3,251,019 200,063,58
7.73% 1.54% 3.40% 1.60%
based on five-level 910.78 5.25 ,905.53 04.67 .07 5.60
classification of
credit risks
Accounts receivable
for which bad debt
provision is assessed
72,099,3 72,099,
collectively - 1.33% 0.00%
03.23 303.23
government subsidy
for new energy
vehicles
4,946,7
5,424,41 477,708, 5,979,099 414,264,6 5,564,834,8
Total 100.00% 8.81% 04,963. 100.00% 6.93%
3,714.99 751.28 ,528.01 63.97 64.04
71
Dad debt provision assessed individually:
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Provision proportion Reasons for provision
Jiande Xinyue Real Expected to be
377,496.00 377,496.00 100.00%
Estate Co., Ltd. irrecoverable
Xuzhou Weitian Expected to be
400,000.00 400,000.00 100.00%
Chemical Co., Ltd. irrecoverable
Ma'anshan Ruiheng
Expected to be
Material Trading Co., 2,137,100.00 2,137,100.00 100.00%
irrecoverable
Ltd.
Fuqing Dinghuan Expected to be
329,600.00 329,600.00 100.00%
Cleaning Co., Ltd. irrecoverable
Kunming Jialize
Expected to be
Characteristic Town Real 1,330,000.00 1,330,000.00 100.00%
irrecoverable
Estate Co., Ltd.
Nanning Mingwan
Expected to be
Environmental Protection 525,000.00 525,000.00 100.00%
irrecoverable
Engineering Co., Ltd.
Expected to be
Others 445,706.60 445,706.60 100.00%
irrecoverable
Total 5,544,902.60 5,544,902.60 -- --
Bad debt provision assessed collectively: Ventilation equipment manufacturing industry and environmental integrated industry under
aging analysis method
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Provision proportion
Within 1 year 3,640,492,179.71 182,024,609.08 5.00%
1-2 years 835,288,035.93 83,528,803.59 10.00%
2-3 years 262,860,548.89 78,858,164.66 30.00%
3-5 years 135,397,135.35 67,698,567.60 50.00%
Over 5 years 53,596,698.50 53,596,698.50 100.00%
Total 4,927,634,598.38 465,706,843.43 --
Bad debt provision assessed collectively: Commercial factoring portfolio grouped by five-level classification
Unit: RMB
Name Closing balance
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Book balance Bad debt provision Provision proportion
Normal 430,467,016.73 6,457,005.25 1.50%
Total 430,467,016.73 6,457,005.25 --
Bad debt provision assessed collectively: government subsidy for new energy vehicles
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Provision proportion
Accounts receivable – Portfolio
grouped with government
72,099,303.23 0.00
subsidy receivable for new
energy vehicles
Total 72,099,303.23 0.00 --
If the bad debt provision for notes receivable is assessed using general model of expected credit loss, please disclose the bad debt
provision by reference to the disclosure of bad debt provision for other receivables:
□ Applicable √ Not Applicable
Disclosure by account aging
Unit: RMB
Account aging Book balance
Within 1 year (inclusive) 4,131,726,393.71
1-2 years 836,618,035.93
2-3 years 263,420,548.90
Over 3 years 192,648,736.45
3-5 years 138,149,475.35
Over 5 years 54,499,261.10
Total 5,424,413,714.99
(2) Provision, recovery or reversal of bad debt for the period
Dad debt provision for the period:
Unit: RMB
Changes in the period
Category Opening balance Recovery or Closing balance
Provision Write-off Others
reversal
Dad debt
provision
13,881,143.78 1,968,398.82 10,304,640.00 5,544,902.60
assessed
individually
Dad debt
provision
400,383,520.19 78,712,815.20 6,665,916.53 266,570.18 472,163,848.68
assessed
collectively
Total 414,264,663.97 80,681,214.02 16,970,556.53 266,570.18 477,708,751.28
Other decrease of RMB 266,570.18 represents the transfer-out due to disposal of Guangdong Yingling Testing Technology
Service Co., Ltd., Hunan Ningxiang Renhe Integrated Waste Treatment Co., Ltd. and Donggang Magnet Wire Company.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(3) Accounts receivable written off in the period
Unit: RMB
Item Write-off
Trade receivable 16,970,556.53
Significant accounts receivable written off in the period:
Unit: RMB
Whether arising
Nature of accounts Write-off procedures
Debtors Write-off Reasons for write-off from related party
receivable performed
transactions
Shenzhen Weimin
Expected to be Management
Ecological Goods payment 10,304,640.00 No
irrecoverable approval
Technology Co., Ltd.
Shenzhen Jieya
Environmental Expected to be Management
Goods payment 1,525,200.00 No
Protection Industry irrecoverable approval
Co., Ltd.
Urban
Administration and
Expected to be Management
Law Enforcement Goods payment 600,000.00 No
irrecoverable approval
Bureau of Anqing
County
Ordos Municipal
Kangbashi District Expected to be Management
Goods payment 500,000.00 No
Utility Service irrecoverable approval
Center
Shenzhen Dongheng
Expected to be Management
Environmental Goods payment 450,000.00 No
irrecoverable approval
Protection Co., Ltd.
Shenghe Urban
Expected to be Management
Environmental Goods payment 447,486.02 No
irrecoverable approval
Technology Co., Ltd.
Tianjin City
Appearance and
Sanitation Expected to be Management
Goods payment 422,300.00 No
Machinery irrecoverable approval
Equipment Service
Center
Xi'an Municipal
Beilin District Urban
Expected to be Management
Administration and Goods payment 295,500.00 No
irrecoverable approval
Law Enforcement
Bureau
Tianjin Municipal
Beichen District City
Appearance and Expected to be Management
Goods payment 266,980.00 No
Gardens irrecoverable approval
Management
Committee
Xiamen Xiang'an
Municipal Group Expected to be Management
Goods payment 261,538.48 No
Environmental irrecoverable approval
Engineering Co., Ltd
Total -- 15,073,644.50 -- -- --
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(4) Details of the top 5 debtors with the largest balances of accounts receivable
Unit: RMB
Closing balance of accounts Proportion to the total balance of Closing balance of bad debt
Debtors
receivable accounts receivable (%) provision
Customer A 74,081,870.15 1.37% 3,704,093.51
Customer B 73,000,000.00 1.35% 1,136,107.50
Customer C 72,099,303.23 1.33% 0.00
Customer D 71,096,232.59 1.31% 5,439,787.47
Customer E 68,183,982.98 1.26% 5,048,890.25
Total 358,461,388.95 6.62%
(5) Assets and liabilities arising from continuing involvement in the transferred accounts receivable
NA
(6) Accounts receivable derecognized due to transfer of financial assets
1) Zhejiang Shangfeng Special Blower Industrial Co., Ltd.
Amount Gains or losses on
Item Way of transfer of financial assets
derecognized derecognition
Sales of ventilation equipment 4,711,704.53 -58,099.17 Factoring accounts receivable without recourse
Sub-total 4,711,704.53 -58,099.17
2) Zoomlion Environmental
Gains or losses on
Item Amount derecognized Way of transfer of financial assets
derecognition
Sales of sanitation vehicles 571,064,080.00 -21,967,180.07 Factoring accounts receivable without recourse
Sub-total 571,064,080.00 -21,967,180.07
6. Receivables financing
Unit: RMB
Item Closing balance Opening balance
Bank acceptance 296,379,694.57 520,429,874.86
Total 296,379,694.57 520,429,874.86
Changes in receivables financing in the current period and fair value changes
□ Applicable √ Not Applicable
If the impairment provision for receivables financing is assessed using general model of expected credit loss, please disclos e the
impairment provision by reference to the disclosure of other receivables:
□ Applicable √ Not Applicable
(1) There is no write-off of receivables financing in the current period
(2) Notes receivable pledged by the Company at the end of the period
Item Amount pledged at the end of the period
Bank acceptance 143,994,957.80
Sub-total 143,994,957.80
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(3) Notes receivable endorsed or discounted by the Company at the end of the period and yet undue at the balance sheet date
Item Amount derecognized at the end of the period
Bank acceptance 176,645,163.93
Sub-total 176,645,163.93
As the acceptor of bank acceptance is commercial bank, which has higher credit, there is minor possibility that the bank
acceptance will not be paid. Therefore, the Company derecognized the bank acceptance that has been endorsed or discounted.
However, if such bank acceptance is accepted and paid by the bank upon maturity, the Company still bears joint liability to the holder
of the bank acceptance in accordance with the Bill Law.
7. Prepayments
(1) Presentation of prepayments by aging
Unit: RMB
Closing balance Opening balance
Account aging
Amount Ratio Amount Ratio
Within 1 year 124,131,454.89 96.52% 134,718,034.94 97.79%
1-2 years 3,969,968.37 3.09% 1,328,399.29 0.96%
2-3 years 67,855.05 0.05% 1,621,900.20 1.18%
Over 3 years 435,104.35 0.34% 100,864.10 0.07%
Total 128,604,382.66 -- 137,769,198.53 --
(2) Details of the top 5 debtors with the largest balances of prepayments
Proportion to the total balance of
Debtors Book balance
prepayments (%)
Customer A 21,800,000.00 16.95
Customer B 7,722,960.00 6.01
Customer C 3,932,330.35 3.06
Customer D 3,217,699.03 2.50
Customer E 3,000,000.00 2.33
Sub-total 39,672,989.38 30.85
8. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 509,164,126.27 257,670,998.28
Total 509,164,126.27 257,670,998.28
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
179
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Nature of the account Closing balance Opening balance
Security deposits 129,986,238.82 155,500,083.80
Temporary advance payment receivable
108,556,330.04 79,760,368.16
and petty cash
Loans receivable 13,046,550.18 48,442,016.60
Equity transfer receivable [note] 115,100,000.00
Debt transfer receivable 9,000,000.00
Performance compensation 163,460,620.00
Others 2,220,686.46 3,846,217.89
Total 541,370,425.50 287,548,686.45
[Note] The equity transfer receivable represents the receivable arising from disposal of Foshan Yingtong in the current perio d
and has been received in full amount on January 26, 2022.
Bad debt provision
Unit: RMB
Stage I Stage II Stage III
Bad debt provision 12-month expected Lifetime ECL (not credit- Lifetime ECL (credit- Total
credit loss (ECL) impaired) impaired)
Balance at January 1,
9,190,094.83 4,437,355.76 16,250,237.58 29,877,688.17
2021
Balance at January 1,
2021 in the current —— —— —— ——
period
--Transfer to stage II -1,885,311.19 1,885,311.19 0.00 0.00
--Transfer to stage III 0.00 -2,323,153.72 2,323,153.72 0.00
--Reversed to stage II 0.00 0.00 0.00 0.00
--Reversed to stage I 0.00 0.00 0.00 0.00
Provision in the current
3,641,359.99 65,064.37 11,887,101.40 15,593,525.76
period
Reversal in the period 0.00 0.00 0.00 0.00
Write-off in the period 473,500.75 473,500.75
Other changes -12,791,413.95 -12,791,413.95
Balance on December 31,
10,946,143.63 4,064,577.60 17,195,578.00 32,206,299.23
2021
Changes in book balance with significant changes in loss allowance in the current period
□ Applicable √ Not Applicable
Disclosure by account aging
Unit: RMB
Account aging Book balance
Within 1 year (inclusive) 462,044,798.94
1-2 years 40,645,776.00
2-3 years 23,641,994.01
Over 3 years 15,037,856.55
3-5 years 9,861,753.55
Over 5 years 5,176,103.00
Total 541,370,425.50
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
3) Provision, recovery or reversal of bad debt in the current period
Dad debt provision for the period:
Unit: RMB
Changes in the period
Opening
Category Recovery or Closing balance
balance Provision Write-off Others
reversal
Dad debt
provision assessed 29,877,688.17 15,593,525.76 473,500.75 12,791,413.95 32,206,299.23
collectively
Total 29,877,688.17 15,593,525.76 473,500.75 12,791,413.95 32,206,299.23
[Note] Other decrease of RMB 263,601.84 represents the transfer-out due to disposal of Guangdong Yingling Testing
Technology Service Co., Ltd. and Foshan Yingtong Electrical Materials Co., Ltd.; other decrease of RMB 12,164,432.14 represents
the transfer-out due to the transfer of the Company's creditor's rights against Guangdong Liangke Environmental Engineering Co.,
Ltd.; other decrease of RMB 363,379.97 represents the transfer-out due to the sales of the creditor’s rights of Zoomlion
Environmental against Shantou Zoomlion Ruikang Environmental Sanitation Service Co., Ltd.
4) Other receivables written off in current period
Unit: RMB
Item Write-off
Dad debt provision assessed collectively 473,500.75
5) Details of the top 5 debtors with the largest balances of other receivables
Unit: RMB
Proportion to the
Nature of other Closing balance of
Debtors Closing balance Account aging total balance of other
receivables bad debt provision
receivables (%)
Performance
compensation and Within 1 year, 2-5
Customer A 163,792,911.19 30.26% 106,389.76
temporary advance years
payment receivable
Equity transfer
Customer B 115,100,000.00 Within 1 year 21.26% 2,302,000.00
receivable
0-2 years, over 5
Customer C Security deposits 12,245,069.06 2.26% 1,562,903.45
years
Debt transfer
Customer D 9,000,000.00 Within 1 year 1.66% 0.00
receivable
Customer E Security deposits 7,000,000.00 1-2 years 1.29% 700,000.00
Total -- 307,137,980.25 -- 4,671,293.21
6) Other receivables derecognized due to transfer of financial assets
NA
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
7) Assets and liabilities arising from continuing involvement in the transferred other receivables
NA
9. Inventory
Is the Company required to comply with the disclosure requirements for real estate industry
No
(1) Categories of inventories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
decline in value decline in value
Item of inventories or of inventories or
Book balance Carrying amount Book balance Carrying amount
impairment of impairment of
cost to fulfill a cost to fulfill a
contract contract
Raw materials 147,473,632.02 10,760,156.11 136,713,475.91 171,456,835.82 11,347,353.70 160,109,482.12
Work in process 181,227,151.81 2,023,841.04 179,203,310.77 243,622,797.51 12,052,957.06 231,569,840.45
Goods on hand 809,403,199.63 18,453,429.33 790,949,770.30 920,639,142.87 23,583,555.13 897,055,587.74
Consigned
processing 2,741,520.48 0.00 2,741,520.48 4,463,263.89 0.00 4,463,263.89
materials
Packaging
0.00 0.00 0.00 600,215.41 0.00 600,215.41
materials
Low-value
0.00 0.00 0.00 33,051.67 0.00 33,051.67
consumables
Cost to fulfill a
14,541,641.55 0.00 14,541,641.55 11,345,966.57 0.00 11,345,966.57
contract
Total 1,155,387,145.49 31,237,426.48 1,124,149,719.01 1,352,161,273.74 46,983,865.89 1,305,177,407.85
(2) Provision for decline in value of inventories or impairment of cost to fulfill a contract
Unit: RMB
Increase in the period Decrease in the period
Item Opening balance Reversal or write- Closing balance
Provision Others Others
off
Raw materials 11,347,353.70 6,939,879.28 0.00 6,971,978.61 555,098.26 10,760,156.11
Work in process 12,052,957.06 1,101,074.11 0.00 11,130,190.13 0.00 2,023,841.04
Goods on hand 23,583,555.13 13,558,144.28 0.00 15,964,295.04 2,723,975.04 18,453,429.33
Total 46,983,865.89 21,599,097.67 0.00 34,066,463.78 3,279,073.30 31,237,426.48
(1) Other decrease of RMB 3,279,073.30 represents the transfer-out due to disposal of Foshan Yingtong Electrical Materials Co.,
Ltd.
(2) Basis for determining the net realizable value, reasons for reversal or write-off of provision for decline in value of
inventories
Item Basis for determining the net realizable Reasons for write-off of provision for decline in
value value of inventories
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
The net realizable value is the
estimated selling price of relevant
The inventories for which the provision for
finished goods less the estimated cost
Raw materials, work in process decline in value has been made at the beginning
of completion, the estimated cost
of the period have been consumed or sold
necessary to make the sale and relevant
taxes.
The net realizable value is the
estimated selling price of relevant The inventories for which the provision for
Goods on hand finished goods less the estimated cost decline in value has been made at the beginning
necessary to make the sale and relevant of the period have been consumed or sold
taxes.
(3) Description of capitalized borrowing cost included in closing balance of inventories
□ Applicable √ Not Applicable
(4) Description of amortization of cost to fulfill a contract in the current period
Opening balance Increase in Carried forward Closing balance
Item
current period
Urban Garbage Classification EPC Project 2,726,893.11 2,726,893.11
of Changgao Project
Nanliu Bobai Project 2,445,242.48 2,445,242.48
Foshan Shunde Project 1,767,838.14 1,767,838.14
Yunli Software Project 1,319,009.81 1,319,009.81
Urban Classification Construction Project 1,310,653.98 1,310,653.98
of Baoan Project
Urban and Rural Domestic Waste 682,811.36 682,811.36
Sanitation Integration Project in Nan’an
City
Shenzhen Futian Kitchen Waste Delivery 7,541,198.74 7,541,198.74
Project
Liling MVR Concentrated Liquor Project 2,382,149.87 2,382,149.87
Qingyuan Leachate Full Capacity 1,242,114.60 1,242,114.60
Emergency Operation Project
Hanshou Rural Sewage Delivery Project 907,876.13 907,876.13
Phase II
Xi' an Chanba Transfer Station Leachate 769,578.05 769,578.05
Delivery Project
Fuzhou Jin'an District Leachate Delivery 449,012.13 449,012.13
Project
Others 1,093,517.69 36,208,148.21 36,051,953.87 1,249,712.03
Sub-total 11,345,966.57 49,500,077.73 46,304,402.75 14,541,641.55
10. Contract assets
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment
Book balance Book balance Carrying amount
provision amount provision
Quality guarantee deposit
154,503,581.34 14,135,778.81 140,367,802.53 179,821,458.38 8,980,802.76 170,840,655.62
receivable
Total 154,503,581.34 14,135,778.81 140,367,802.53 179,821,458.38 8,980,802.76 170,840,655.62
If the bad debt provision for contract assets is assessed using general model of expected credit loss, please disclose the ba d debt
183
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
provision by reference to the disclosure of other receivables:
□ Applicable √ Not Applicable
Impairment provision for contract assets for the current period
Unit: RMB
Provision in the current Write-off/ elimination in
Item Reversal in the period Reason
period the period
On collective basis 5,154,976.05
Total 5,154,976.05 --
11. Held-for-sale assets
□ Applicable √ Not Applicable
12. Non-current assets due within one year
Unit: RMB
Item Closing balance Opening balance
Quality guarantee deposit receivable 2,542,221.63
Sale of goods in installments 509,828,906.59 547,491,985.64
Guaranteed collection amount for BOT
529,174.84
projects
Payments for finance lease 164,002,734.90 97,160,974.39
Equity transfer payments received in
337,148,608.96
installments
Financial factoring of accounts receivable 66,086,225.04 167,133,864.07
Long-term loans with payment of interest
by installments and principal at the 5,990,500.00
maturity date
Total 739,917,866.53 1,157,997,329.53
13. Other current assets
Unit: RMB
Item Closing balance Opening balance
Cost to obtain a contract 14,900,623.62
Input tax to be deducted and tax credits 477,804,757.55 524,859,055.94
Total 492,705,381.17 524,859,055.94
14. Debt investments
□ Applicable √ Not Applicable
15. Other debt investments
□ Applicable √ Not Applicable
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16. Long-term receivables
(1) Long-term receivables
Unit: RMB
Closing balance Opening balance
Range of
Item Bad debt Carrying Bad debt Carrying
Book balance Book balance discount rate
provision amount provision amount
Payments for
56,739,301.32 877,857.61 55,861,443.71 41,994,262.31 667,631.54 41,326,630.77 4.75
finance lease
Sale of goods in 746,421,615.6 105,634,590.6 640,787,025.0 748,549,528.1 100,750,766.1 647,798,762.0
4.75
installments 8 1 7 8 2 6
Guaranteed
143,652,118.7 135,376,832.0 163,149,034.5 152,850,162.9
collection amount 8,275,286.70 10,298,871.59 4.75
2 2 4 5
for BOT projects
Long-term loans
with payment of
interest by
21,800,446.27 520,511.10 21,279,935.17 Not applicable
installments and
principal at the
maturity date
Financial
factoring of 188,408,490.1 185,221,236.7 203,587,199.7 200,036,927.7
3,187,253.40 3,550,272.01 4.75
accounts 3 3 1 0
receivable
1,135,221,525. 117,974,988.3 1,017,246,537. 1,179,080,471. 115,788,052.3 1,063,292,418.
Total --
85 2 53 01 6 65
Changes in book balance with significant changes in loss allowance in the current period
□ Applicable √ Not Applicable
(2) Long-term receivables derecognized due to transfer of financial assets
NA
(3) Assets and liabilities arising from continuing involvement in the transferred long-term receivables
NA
17. Long-term equity investments
Unit: RMB
Changes for the current period
Cash Closing
Opening Profit and Adjustme dividends Closing balance
balance Additi Reduction loss on nt of or profits balance of
Investee Other Impairme
(carrying onal in investmen other to be (carrying impairme
equity nt Others
amount) invest investmen ts under comprehe distribute amount) nt
changes provision
ment t the equity nsive d as provision
method income announce
d
I. Joint ventures
II. Associates
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Lianjiang
40,821
Greenlander 3,757,005 44,578,47
,473.1
New Energy .24 8.42
8
Co., Ltd.
Tengine
Innovation
29,563
(Beijing) 902,107.4 260,167.1 30,205,11
,175.0
Monitoring 2 2 5.36
6
Instrument Co.,
Ltd.
Guangdong
Shunkong 174,00
28,696,90 7,573,789 195,130,1
Environmental 7,088.
0.36 .83 99.37
Investment Co., 84
Ltd.
Guangdong
Tianshu New 8,000, -
2,688,700
Energy 000.0 5,311,299
.75
Technology Co., 0 .25
Ltd.
Shantou
Zoomlion
Ruikang 15,026
4,524,731 19,550,92
Environmental ,188.9
.63 0.59
Sanitation 6
Service Co.,
Ltd.
Shantou
Chaoyang
District
Zoomlion 16,575
2,858,291 19,433,72
Ruikang ,434.1
.55 5.73
Environmental 8
Sanitation
Service Co.,
Ltd.
Changsha Cowa
Zoomlion -
6,570, 5,429,199
Intelligent 1,141,749
949.29 .88
Technology Co., .41
Ltd.
Guangdong
Liangke 35,679 -
34,109,83
Environmental ,023.1 1,569,183
9.80
Engineering 8 .38
Co., Ltd.
Guangxi
Zoomlion Guilv
2,100,
Urban 2,136,327
000.0 36,327.10
Environmental .10
0
Service Co.,
Ltd.
Shenzheng
Yingmei City 30,00
30,000.00
Stewards Co., 0.00
Ltd.(
Foshan
Yingtong
5,288,274 245,000,0 250,288,2
Electrical
.31 00.00 74.31
Materials Co.,
Ltd. [note 1]
Guangdong
186
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Yingling Testing
Technology
Service Co.,
Ltd. [note 2]
318,24 10,13
38,041,40 7,833,956 245,000,0 603,580,7
Sub-total 3,332. 0,000.
5.57 .95 00.00 81.31
69 00
318,24 10,13
38,041,40 7,833,956 245,000,0 603,580,7
Total 3,332. 0,000.
5.57 .95 00.00 81.31
69 00
[Note 1] Other increase of RMB 245,000,000.00 represents that the Company disposed 51% equity of Foshan Yingtong
Electrical Materials Co., Ltd. resulting in that Foshan Yingtong Electrical Materials Co., Ltd. became an associate of the Company,
and the fair value of the remaining 49% equity remeasured on the date of losing control is RMB 245,000,000.00.
[Note 2] The long-term equity investments in Guangdong Yingling Testing Technology Service Co., Ltd. is RMB 0.00 mainly
represents that the Company reduced the carrying amount of the long-term equity investments to RMB 0.00 under equity method,
because the company incurred long-run loss.
18. Other equity instrument investments
Unit: RMB
Item Closing balance Opening balance
Zhejiang Shangyu Rural Commercial Bank
800,000.00 800,000.00
Co., Ltd.
Shenzhen Yingfeng Environmental
Protection Industry Fund Management Co., 270,000.00 270,000.00
Ltd.
Shenzhen Yingfeng Environmental
Protection Industry Merger and 14,632,971.01 25,000,000.00
Acquisition Fund [note]
Total 15,702,971.01 26,070,000.00
Non-held-for-trading equity instrument investments for the period
Unit: RMB
Reason for Reason for
Other
designation as at transfer from
Dividend comprehensive
Cumulative Cumulative fair value through other
Item income income
gains losses other comprehensive
recognized transferred to
comprehensive income to
retained earnings
income retained earnings
Zhejiang Shangyu Rural
Commercial Bank Co., 414,960.00
Ltd.
[Note] The Shenzhen Yingfeng Environmental Protection Industry Merger and Acquisition Fund entered into liquidation
procedures in the current period. As of December 31, 2021, the liquidation is still in progress. In the current period, the C ompany
received liquidation fund in the form of bank deposits of RMB 6,087,028.99; according to the calculation, the Company is expected
to incur loss of RMB 4,280,000.00 and made provision for fair value changes of RMB -4,280,000.00 in the current period.
19. Other non-current financial assets
□ Applicable √ Not Applicable
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
20. Investment properties
(1) Investment properties measured at cost
√ Applicable □ Not Applicable
Unit: RMB
Item Housing and Buildings Land use right Construction in progress Total
I. Cost
1. Opening balance 2,749,234.43 2,749,234.43
2. Increase in the
period
(1) Purchased
(2) Transfer from
inventories/ fixed assets/
construction in progress
(3) Increase due to
business combination
3. Decrease in the
220,550.00 220,550.00
period
(1) Disposal
(2) Other transfer-
out
(3) Disposal of
220,550.00 220,550.00
subsidiaries
4. Closing balance 2,528,684.43 2,528,684.43
II. Accumulated
depreciation and
amortization
1. Opening balance 740,227.45 740,227.45
2. Increase in the
171,303.30 171,303.30
period
(1) Provision or
amortization in the 171,303.30 171,303.30
period
3. Decrease in the period 220,550.00 220,550.00
(1) Disposal
(2) Other transfer-
out
(3) Disposal of
220,550.00 220,550.00
subsidiaries
4. Closing balance 690,980.75 690,980.75
III. Impairment provision
1. Opening balance
2. Increase in the
period
(1) Charge for the
period
3. Decrease in the period
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(1) Disposal
(2) Other transfer-
out
4. Closing balance
IV. Carrying amount
1. Closing carrying
1,837,703.68 1,837,703.68
amount
2. Opening carrying
2,009,006.98 2,009,006.98
amount
(2) Investment properties measured at fair value
□ Applicable √ Not Applicable
(3) Investment property with certificate of titles being unsettled
Unit: RMB
Reason(s) for the failure to obtain the
Item Carrying amount
certificate of title
Shangyu Wanda Real Estate 1,837,703.68 In process
Other statements
21. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1,758,052,005.19 1,640,546,747.67
Total 1,758,052,005.19 1,640,546,747.67
(1) Details of fixed assets
Unit: RMB
Houses and General Special Transport
Item Other equipment Total
buildings equipment equipment facilities
I. Original book
value
1. Opening
1,185,150,084.27 121,293,856.34 761,110,029.41 39,846,605.97 42,802,907.42 2,150,203,483.41
balance
2. Increase
165,686,166.46 34,010,803.55 220,605,077.69 24,561,781.91 1,648,036.75 446,511,866.36
in the period
(1) Purchase 3,188,473.20 32,088,672.13 73,983,327.78 24,561,781.91 1,648,036.75 135,470,291.77
(2) Transfer
from construction 162,497,693.26 1,922,131.42 135,046,081.59 0.00 0.00 299,465,906.27
in progress
(3) Increase
due to business
combination
(4) Transfer 11,575,668.32 11,575,668.32
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
from inventories
3. Decrease in the
116,622,056.20 7,531,506.32 200,096,469.31 1,342,840.56 10,051,411.82 335,644,284.21
period
(1) Disposal
2,626,064.70 4,979,884.76 15,047,460.00 111,111.11 39,917.00 22,804,437.57
or retirement
(2) Disposal
113,995,991.50 2,551,621.56 185,049,009.31 1,231,729.45 10,011,494.82 312,839,846.64
of subsidiaries
4. Closing
1,234,214,194.53 147,773,153.57 781,618,637.79 63,065,547.32 34,399,532.35 2,261,071,065.56
balance
II. Accumulated
depreciation
1. Opening
179,905,052.43 35,355,332.78 259,273,098.92 9,710,022.45 25,413,229.16 509,656,735.74
balance
2. Increase
46,220,576.04 14,368,226.22 101,340,722.61 5,992,951.40 1,493,802.29 169,416,278.56
in the period
(1) Charge
46,220,576.04 14,368,226.22 101,340,722.61 5,992,951.40 1,493,802.29 169,416,278.56
for the period
3. Decrease in the
63,235,480.81 4,846,798.21 97,776,850.30 678,059.94 9,516,764.67 176,053,953.93
period
(1) Disposal
172,451.62 3,970,065.23 5,487,151.44 75,444.45 1,222.20 9,706,334.94
or retirement
(2) Disposal
63,063,029.19 876,732.98 92,289,698.86 602,615.49 9,515,542.47 166,347,618.99
of subsidiaries
4. Closing
162,890,147.66 44,876,760.79 262,836,971.23 15,024,913.91 17,390,266.78 503,019,060.37
balance
III. Impairment
provision
1. Opening
balance
2. Increase
in the period
(1) Charge
for the period
3. Decrease
in the period
(1) Disposal
or retirement
4. Closing
balance
IV. Carrying
amount
1. Closing
1,071,324,046.87 102,896,392.78 518,781,666.56 48,040,633.41 17,009,265.57 1,758,052,005.19
carrying amount
2. Opening
1,005,245,031.84 85,938,523.56 501,836,930.49 30,136,583.52 17,389,678.26 1,640,546,747.67
carrying amount
(2) Fixed assets that are temporarily idle
NA
190
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(3) Fixed asset leased out through operating lease
NA
(4) Fixed assets with certificate of title being unsettled
Unit: RMB
Reason(s) for failure to obtain the
Item Carrying amount
certificate of title
Lu'eryuan employee dormitory 141,005,849.01 Certificate of title is in processing
Lu'eryuan exhibition center 26,684,469.11 Certificate of title is in processing
Lu'eryuan debugging shed 18,366,071.29 Certificate of title is in processing
Lu'eryuan workshop 35,032,263.47 Certificate of title is in processing
Lu'eryuan staff canteen 22,316,545.29 Certificate of title is in processing
Sub-total 243,405,198.17 --
22. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 224,068,633.86 70,735,483.95
Total 224,068,633.86 70,735,483.95
(1) Details of construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying amount Book balance Carrying amount
provision provision
Construction of
Lu'eryuan
47,031,231.64 47,031,231.64
employee
dormitory
West plot
construction of
335,590.56 335,590.56
Lueryuan North
Plant
Construction of
integrated smart
189,748,878.58 189,748,878.58
equipment and
sanitation service
Equipment to be
5,468,920.80 5,468,920.80 8,524,283.57 8,524,283.57
installed
Piecemeal
28,850,834.48 28,850,834.48 14,844,378.18 14,844,378.18
projects
Total 224,068,633.86 224,068,633.86 70,735,483.95 70,735,483.95
[Note] The difference between the opening balance and prior year closing balance (December 31, 2020) is detailed in Note V
(XLIV) 2 to the financial statements.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(2) Changes in significant construction in progress in the current period
Unit: RMB
Includin
Accumul
Accumul g:
Percenta ated Annual
Increase Transfer Other ated Capitaliz
Budget Opening Closing ge of capitaliz capitaliz Source
Item in the to fixed decrease input to ation of
s balance balance completi ation of ation rate of funds
period assets s budget interest
on (%) borrowin (%)
(%) in the
g cost
period
Constructi
on of 150,00
47,031,2 94,958,4 141,989,
Lu'eryuan 0,000.0 100.00% 100.00 Others
31.64 02.71 634.35
employee 0
dormitory
West plot
constructi
on of 44,484, 335,590. 335,590.
100.00% 100.00 Others
Lueryuan 704.00 56 56
North
Plant
Constructi
on of
integrated
300,00
smart 189,748, 189,748,
0,000.0 63.25% 63.25 Others
equipment 878.58 878.58
0
and
sanitation
service
Equipment
8,524,28 140,272, 130,998, 12,329,4 5,468,92
to be - Others
3.57 728.33 646.50 44.60 0.80
installed
Piecemeal 14,844,3 40,148,4 26,142,0 28,850,8
- Others
projects 78.18 91.16 34.86 34.48
494,48
70,735,4 465,128, 299,465, 12,329,4 224,068,
Total 4,704.0 -- -- --
83.95 500.78 906.27 44.60 633.86
0
23. Bearer biological assets
(1) Bearer biological assets measured at cost
□ Applicable √ Not Applicable
(2) Bearer biological assets measured at fair value
□ Applicable √ Not Applicable
24. Oil and gas assets
□ Applicable √ Not Applicable
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
25. Right-of-use assets
Unit: RMB
Item Houses and buildings Other equipment Total
I. Original book value
1. Opening balance 28,155,865.39 2,789,202.39 30,945,067.78
2. Increase in the period 490,555.41 0.00 490,555.41
(1) Held under lease 490,555.41 0.00 490,555.41
3. Decrease in the period 0.00 0.00 0.00
0.00
4. Closing balance 28,646,420.80 2,789,202.39 31,435,623.19
II. Accumulated depreciation 0.00
1. Opening balance 0.00 0.00 0.00
2. Increase in the period 4,608,299.09 1,321,412.24 5,929,711.33
(1) Charge for the period 4,608,299.09 1,321,412.24 5,929,711.33
0.00
3. Decrease in the period 0.00
(1) Disposal 0.00
0.00
4. Closing balance 4,608,299.09 1,321,412.24 5,929,711.33
III. Impairment provision 0.00
1. Opening balance 0.00
2. Increase in the period 0.00
(1) Charge for the period 0.00
0.00
3. Decrease in the period 0.00
(1) Disposal 0.00
0.00
4. Closing balance 0.00
IV. Carrying amount 0.00
1. Closing carrying
24,038,121.71 1,467,790.15 25,505,911.86
amount
2. Opening carrying
28,155,865.39 2,789,202.39 30,945,067.78
amount
[Note] The difference between the opening balance and prior year closing balance (December 31, 2020) is detailed in Note V
(44) 1 to the financial statements.
26. Intangible assets
(1) Details of intangible assets
Unit: RMB
Non-patented
Item Land use right Patents Franchise Software Total
technology
I. Cost
1. Opening
642,513,532.79 418,489,925.32 4,867,974,432.55 29,965,109.94 5,958,943,000.60
balance
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
2. Increase
16,067,730.49 872,440,307.47 16,090,584.84 904,598,622.80
in the period
(1) Purchase 872,440,307.47 5,008,197.47 877,448,504.94
(2) Internal
R&D
(3) Increase
due to business
combination
(4) Transfer
from construction 11,082,387.37 11,082,387.37
in progress
(5)
Independent 16,067,730.49 16,067,730.49
R&D
3. Decrease
54,874,305.42 90,945,386.56 3,572,860.03 149,392,552.01
in the period
(1) Disposal 1,835,171.80 1,835,171.80
(2) Disposal
54,874,305.42 89,110,214.76 3,572,860.03 147,557,380.21
of subsidiaries
4. Closing
587,639,227.37 434,557,655.81 5,649,469,353.46 42,482,834.75 6,714,149,071.39
balance
II. Accumulated
amortization
1. Opening
74,727,360.32 189,088,308.97 759,944,108.21 14,580,701.65 1,038,340,479.15
balance
2. Increase
12,464,449.21 34,060,104.12 314,111,404.97 3,562,666.10 364,198,624.40
in the period
(1)
Provision for the 12,464,449.21 34,060,104.12 314,111,404.97 3,562,666.10 364,198,624.40
period
3. Decrease
14,632,772.43 35,434,960.36 2,917,246.64 52,984,979.43
in the period
(1) Disposal 731,303.45 731,303.45
(2) Disposal
14,632,772.43 34,703,656.91 2,917,246.64 52,253,675.98
of subsidiaries
4. Closing
72,559,037.10 223,148,413.09 1,038,620,552.82 15,226,121.11 1,349,554,124.12
balance
III. Impairment
provision
1. Opening
20,185,580.19 24,687,522.85 44,873,103.04
balance
2. Increase
in the period
(1)
Provision for the
period
3. Decrease
in the period
(1) Disposal
4. Closing
20,185,580.19 24,687,522.85 44,873,103.04
balance
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
IV. Carrying
amount
1. Closing
515,080,190.27 191,223,662.53 4,586,161,277.79 27,256,713.64 5,319,721,844.23
carrying amount
2. Opening
567,786,172.47 209,216,036.16 4,083,342,801.49 15,384,408.29 4,875,729,418.41
carrying amount
At the end of the current period, the intangible assets arising from internal R&D accounts for 0.72% of the total intangible assets.
[Note] The difference between the opening balance and prior year closing balance (December 31, 2020) is detailed in Note V
(XLIV) 2 to the financial statements.
(2) Land use right with certificate of titles being unsettled
At the end of the period, the Company had no land use right with certificate of titles being unsettled
27. Development expenditure
Unit: RMB
Increase in the period Decrease in the period
Opening Transferred Closing
Item Internal Recognized
balance to profit or balance
development Others as intangible
loss for the
expenditure assets
period
Development 16,067,730.4 15,682,278.1
4,449,066.69 27,300,941.97 0.00
expenditure 9 7
16,067,730.4 15,682,278.1
Total 4,449,066.69 27,300,941.97 0.00
9 7
For 2021, the Company’s development expenditures mainly comprise the expenditures on development of sanitation equipment,
automatic production line, etc. The capitalization is based on project proposal, charter and periodic summary report.
28. Goodwill
(1) Original carrying amount of goodwill
Unit: RMB
Increase in current period Decrease in current period
Investee or
matters resulting Opening balance Arising from Closing balance
in goodwill business Disposal
combination
Zoomlion
5,714,428,315.99 5,714,428,315.99
Environmental
Greenlander
78,074,688.12 78,074,688.12
Environmental
Foshan Infore
Water
Environment 316,465,481.91 316,465,481.91
Investment Co.,
Ltd.
Zhejiang
Shangfeng 100,455,813.40 100,455,813.40
Special Blower
195
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Industrial Co.,
Ltd.
Donggang
Magnet Wire 14,818,794.95 14,818,794.95 0.00
Company
Total 6,224,243,094.37 0.00 0.00 14,818,794.95 0.00 6,209,424,299.42
(2) Impairment provision for goodwill
Unit: RMB
Investee or Increase in current period Decrease in current period
matters resulting Opening balance Closing balance
in goodwill Provision Disposal
Zoomlion
Environmental 38,615,263.56 194,617,014.59 233,232,278.15
[note]
Donggang
Magnet Wire 14,818,794.95 14,818,794.95
Company
Total 53,434,058.51 194,617,014.59 0.00 14,818,794.95 0.00 233,232,278.15
Details of asset groups or assets group portfolios to which goodwill belongs
[Note] For impairment of goodwill of Zoomlion Environmental, as the goodwill of RMB 92,031,026.04 was included in the
acquisition of Zoomlion Environmental, which corresponded to the original deferred tax liabilities that recognized due to appraisal
appreciation as at the date of business combination not involving enterprises under common control, provision for impairment of
RMB 7,399,380.24 was made along with changes in deferred tax liabilities in the current period, resulting in recognition of
accumulated impairment losses of goodwill of RMB 46,014,643.80; As the recoverable amount of the portfolio of equipment assets
groups of Zoomlion Environmental is below its carrying amount, an impairment loss of goodwill of RMB 187,217,634.35 was
recognized in the current period, resulting in recognition of accumulated impairment losses of goodwill of RMB 187,217,634.35.
Describe the impairment test process, key parameters (such as the growth rate for forecast period and stable period, margin, discount
rate, forecast period etc. used to estimate the present value of future cash flows) and the method of determining the impairment losses
of goodwill:
1) Details of asset groups or assets group portfolios to which goodwill belongs
Asset groups or Legal entities Carrying amount of Carrying amount of Carrying amount of asset
assets group goodwill allocated to the asset groups or assets groups or asset group
portfolios asset groups or asset group portfolios portfolios that include
group portfolios goodwill
Zoomlion Environmental
Sanitation vehicles
(sanitation vehicles and equipment
and equipment
manufacturing and sales business), 11,051,393,640.78 1,447,599,759.91 12,498,993,400.69
manufacturing and
Changsha Zhongbiao
sales asset group
Environmental Industry Co., Ltd.
Zoomlion Environmental
Urban-rural (sanitation integrated operation
sanitation business), Greenlander
integrated Environmental, Huaian Chenjie 306,455,386.89 4,027,197,129.39 4,333,652,516.28
operation asset Environmental Engineering Co.,
group portfolio Ltd. and Biyang County Fenghe
New Energy Power Co., Ltd.
Water treatment
Foshan Yingfeng Environmental
operation asset 316,465,481.91 183,632,631.24 500,098,113.15
Water Treatment Co., Ltd.
group
Ventilator Zhejiang Shangfeng Special
159,547,374.49 164,051,986.36 323,599,360.85
manufacturing and Blower Industrial Co., Ltd.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
sales asset group
Note 1: Goodwill of sanitation vehicles and equipment manufacturing and sales asset group and urban-rural sanitation integrated
operation asset group portfolio included the portion attribution to non-controlling shareholders.
Note 2: In December 2018, Zoomlion Environmental, which was acquired under business combination under common control
by the Company, had two asset groups, i.e. sanitation vehicles and equipment manufacturing and sales asset group and urban-rural
sanitation integrated operation asset group (including waste transfer, landfill and disposal). The assessment on the goodwill of
Zoomlion Environmental was based on the fair value of the identifiable net assets as of the end of June 2017 under asset-based
method in the appraisal report numbered Zhong Rui P ing Bao Z i [2017] 110731042, without considering the synergy between the
urban-rural sanitation integrated operation asset group of Zoomlion Environmental and the waste incineration power generation
operation asset group of former Greenlander Environmental. After the business combination of Zoomlion Environmental, as its
urban-rural sanitation integrated operation asset group and the waste incineration power generation operation asset group of
Greenlander Environmental were similar in terms of business acquisition, production and operation activities, and cash return
realization methods, and the Management had started to carry out integrated management, these two asset groups were identifie d as
the urban-rural sanitation integrated operation asset group portfolio.
The original goodwill of Zoomlion Environmental in the amount of RMB 5.714 billion was re-allocated to the sanitation
vehicles and equipment manufacturing and sales asset group and urban-rural sanitation integrated operation asset group portfolio
based on the gross profit ratio contributed by the two businesses, in amount of RMB 5.636 billion and RMB 78 million, respectively.
2) Impairment test process, method and conclusion
① Determination method of recoverable amount
The recoverable amount of asset groups and asset group portfolios is estimated based on the business characteristics of different
asset groups or asset group portfolios, which is based on the budget approved by the Management. The revenue growth rate of the
product production and sales asset group in 2022 is based on the existing orders, historical data and operating budget, while the
expense rate is based on the average expense rate of the previous three years, in combination with the reasonable income grow th,
capital depreciation and labor cost growth in the future; for operation asset groups or asset group portfolios, due to the large
difference in income and gross profit margin between the investment period and period of maturity of PPP operating projects, the
expected growth rate, stable period growth rate and profit rate of the asset groups and asset group portfolios show an irregular
distribution when multiple projects are run in parallel, and the income, costs and expenses are estimated based on the time to mature
operation and design capacity of each specific project.
The recoverable amount of groups and asset group portfolios is calculated based on the discounted expected future operating
cash flows of operating long-term assets excluding non-operating assets and liabilities, initial working capital, surplus assets and
interest-bearing liabilities.
② Key parameter information for adopting future cash flow discount method
Asset groups or assets group portfolios Forecast period Forecast period Stable period growth Profit margin Pre-tax discount
growth rate rate rate
Sanitation vehicles and equipment
5 years [Note 1] 0.00% 14.72%-16.29% 12.00%
manufacturing and sales asset group
Urban-rural sanitation integrated
[Note] 1 [Note 1] [Note 1] [Note 1] 10.04%-10.88%
operation asset group portfolio
Water treatment operation asset group [Note] 1 [Note 1] [Note 1] [Note 1] 10.59%
Ventilator manufacturing and sales
5 years [Note 2] 0.00% 7.67%-7.87% 12.79%
asset group
[Note1] Refer to the description of determination method of recoverable amount
[Note 2] The revenue growth rate of ventilator manufacturing and sales asset group during the forecast period from 2022 to
2026 is 7.38%, 5.00%, 4.00%, 3.00% and 2.00%, respectively.
④ Conclusion of goodwill impairment test
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Asset groups or assets group portfolios Recoverable amount asset group or Carrying amount of asset Goodwill impairment
asset group portfolios that include groups or asset group loss attributable to the
goodwill portfolios that include Company
goodwill
Sanitation vehicles and equipment
12,131,900,000.00 [Note 1] 12,498,993,400.69 187,217,634.35
manufacturing and sales asset group
Urban-rural sanitation integrated operation
4,693,983,525.19 [Note 2] 4,333,652,516.28
asset group portfolio
Water treatment operation asset group 541,800,000.00 [Note 3] 500,098,113.15
Ventilator manufacturing and sales asset
501,869,189.96 323,599,360.85
group
[Note 1] The present value of estimated future cash flows (recoverable amount) of sanitation vehicles and equipment
manufacturing and sales asset group was based on the Asset Appraisal Report Regarding the Assessment of Recoverable Amount of
Zoomlion Environment's Equipment Asset Group Containing Goodwill Involved in the Testing of Impairment of Goodwill of Infore
Environment Technology Group Co., Ltd. (Zhong Rui P ing Bao Zi (2022) No. 000422) issued by Chungrui Worldunion Assets
Appraisal Group Co., Ltd.
[Note 2] The present value of estimated future cash flows (recoverable amount) of urban-rural sanitation integrated operation
asset group was based on the Asset Appraisal Report Regarding the Assessment of Recoverable Amount of Zoomlion
Environmental's Environmental Operating (Transfer) Asset Group Involved in the Testing of Impairment of Goodwill of Infore
Environment Technology Group Co., Ltd. (Zhong Rui P ing Bao Zi (2022) No. 000422) issued by Chungrui Worldunion Assets
Appraisal Group Co., Ltd, and the Asset Appraisal Report Regarding the Assessment of Recoverable Amount of the Asset Group
Containing the Goodwill Arising from the Acquisition of ]Shenzhen Greenlander Environmental Protection Co., Ltd. Involved in the
Proposed Testing of Impairment of Goodwill of Infore Environment Technology Group Co., Ltd. (Jun Rui P ing Bao Zi (2022) No.19)
issued by Shenzhen Junrui Asset Appraisal Institute LLP.
[Note 3] The present value of estimated future cash flows (recoverable amount) of water treatment operation as set group was
based on the Asset Appraisal Report Regarding the Assessment of Recoverable Amount of the Water Treatment Operation Asset
Group Containing the Goodwill Involved in the Proposed Testing of Impairment of Goodwill of Infore Environment Technolog y
Group Co., Ltd. (Jun Rui P ing Bao Zi (2022) No.018) issued by Shenzhen Junrui Asset Appraisal Institute LLP.
Impact of impairment test of goodwill
29. Long-term deferred expenses
Unit: RMB
Increase in the
Item Opening balance Amortization Other decreases Closing balance
period
Leasehold
11,733,584.23 4,186,358.11 4,262,741.24 403,474.58 11,253,726.52
improvements
Others 970,218.42 11,542,500.63 8,032,688.25 4,480,030.80
Total 12,703,802.65 15,728,858.74 12,295,429.49 403,474.58 15,733,757.32
30. Deferred tax assets/ deferred tax liabilities
(1) Deferred tax assets before offsetting
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Provision for impairment
636,152,868.76 97,253,128.24 589,067,868.14 90,264,437.69
of assets
Unrealized profit from
22,789,085.85 7,986,502.74 13,119,836.20 1,886,494.71
internal transactions
Deductible losses 47,114,527.25 4,326,295.17 20,799,666.14 3,119,949.91
Total 706,056,481.86 109,565,926.15 622,987,370.48 95,270,882.31
(2) Deferred tax liabilities before offsetting
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Accelerated depreciation
27,522,123.27 4,128,318.49 5,789,343.84 1,447,335.96
of fixed assets
Changes in fair value of
0.00 0.00 123,048,000.00 30,762,849.39
financial asset at FVTPL
Assets appraisal
appreciation due to
business combination not 361,902,254.82 28,433,715.48 405,268,960.11 46,674,772.03
involving enterprises
under common control
Total 389,424,378.09 32,562,033.97 534,106,303.95 78,884,957.38
(3) Deferred tax assets or liabilities presented on net basis after offsetting
Unit: RMB
Offset amount of Offset amount of
Closing balance of Opening balance of
deferred tax assets and deferred tax assets and
Item deferred tax assets and deferred tax assets and
liabilities at the end of liabilities at the
liabilities after offsetting liabilities after offsetting
the period beginning of the period
Deferred tax assets 109,565,926.15 95,270,882.31
Deferred tax liabilities 32,562,033.97 78,884,957.38
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 381,701,381.09 146,931,501.30
Deductible losses 430,013,174.82 484,239,806.41
Unrealized profit from internal transactions 313,377,877.13 339,581,837.11
Total 1,125,092,433.04 970,753,144.82
(5) Maturity years of deductible losses of unrecognized deferred tax assets
Unit: RMB
Year Closing balance Opening balance Remarks
2021 0.00 35,765.88
2022 6,812,010.93 27,961,103.28
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
2023 43,809,247.32 57,039,954.82
2024 93,695,529.33 181,871,666.46
2025 214,803,545.16 217,331,315.97
2026 70,892,842.08 0.00
Total 430,013,174.82 484,239,806.41 --
31. Other non-current assets
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Book balance Book balance
provision amount provision amount
Cost to obtain a contract 17,932,020.49 17,932,020.49
Contract assets – quality
177,652,059.17 19,320,439.53 158,331,619.64 49,013,589.27 9,175,693.26 39,837,896.01
guarantee deposit receivable
Prepayments for long-term
48,695,481.45 0.00 48,695,481.45 45,933,089.17 0.00 45,933,089.17
assets
Receivables for agent
8,518,174.25 0.00 8,518,174.25 8,518,174.25 0.00 8,518,174.25
construction
Total 252,797,735.36 19,320,439.53 233,477,295.83 103,464,852.69 9,175,693.26 94,289,159.43
[Note] The closing balance has excluded unrealized financing income of RMB 156,837.00.
32. Short-term borrowings
(1) Categories of short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Mortgaged borrowings 6,959,699.59 72,104,019.96
Guaranteed borrowings 276,091,575.54 518,446,764.98
Unsecured borrowings 150,165,000.00 800,921,295.96
Guaranteed and mortgaged borrowings 4,005,800.00 260,430,637.32
Guaranteed and pledged borrowings 4,000,000.00
Mortgaged and pledged borrowings 1,802,658.33 2,002,658.33
Total 439,024,733.46 1,657,905,376.55
(2) Overdue outstanding short-term borrowings
The Company had no overdue outstanding short-term borrowings at the end of the period.
33. Held-for-trading financial liabilities
Unit: RMB
Item Closing balance Opening balance
Held-for-trading financial liabilities 810,300.00
Including:
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Derivative financial liabilities 810,300.00
Including:
Total 810,300.00
The held-for-trading financial liabilities represents the floating loss of the metal futures contract held by the previous subsidiary
Anhui Wellkey Electric Material Co., Ltd. at the end of the period. In February 2021, the Company has disposed 51% equity of
Foshan Yingtong Electrical Materials Co., Ltd., which is the parent company of Anhui Wellkey Electric Material Co., Ltd., therefore
the held-for-trading financial liability is transferred out accordingly.
34. Derivative financial liabilities
□ Applicable √ Not Applicable
35. Notes payable
Unit: RMB
Category Closing balance Opening balance
Commercial acceptance 187,465,744.62 475,474,206.32
Bank acceptance 2,281,333,445.09 3,377,701,187.77
Total 2,468,799,189.71 3,853,175,394.09
The notes payable that have fallen due but unpaid at the end of the period amount to RMB 0.00.
36. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Closing balance Opening balance
Goods payment 2,688,599,026.21 2,983,456,990.78
Payments for engineering and equipment 158,035,096.31 342,985,351.65
Others 113,427,385.81 78,382,742.60
Total 2,960,061,508.33 3,404,825,085.03
(2) Significant accounts payable with account aging over one year
The Company had no significant accounts payable with account aging over one year at the end of the period.
37. Receipts in advance
□ Applicable √ Not Applicable
38. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Payments for goods 210,432,628.98 181,051,683.90
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Total 210,432,628.98 181,051,683.90
39. Employee benefits payable
(1) Presentation of employee benefits payable
Unit: RMB
Decrease in current
Item Opening balance Increase in current period Closing balance
period
I. Short-term employee
318,508,118.79 1,514,692,741.85 1,523,379,633.52 309,821,227.12
benefits
II. Post-employment
benefits - defined 3,353,870.85 67,310,762.22 70,007,875.54 656,757.53
contribution plan
III. Termination benefits 3,922,218.84 3,698,631.12 223,587.72
Total 321,861,989.64 1,585,925,722.91 1,597,086,140.18 310,701,572.37
(2) Presentation of short-term employee benefits
Unit: RMB
Decrease in current
Item Opening balance Increase in current period Closing balance
period
1. Salary, bonus, subsidy
309,609,939.66 1,388,514,999.20 1,399,217,667.32 298,907,271.54
and allowance
2. Staff welfare 857,047.33 38,387,422.88 38,655,104.26 589,365.95
3. Social insurance 340,453.32 41,642,079.34 41,628,226.25 354,306.41
Including: Medical
340,256.07 38,550,995.84 38,557,583.14 333,668.77
insurance
Work-related injury
197.25 3,091,083.50 3,070,643.11 20,637.64
insurance
4. Housing fund 1,385,150.72 27,414,061.34 27,294,149.88 1,505,062.18
5. Labor union
expenditure and staff 6,315,527.76 18,734,179.09 16,584,485.81 8,465,221.04
education fee
Total 318,508,118.79 1,514,692,741.85 1,523,379,633.52 309,821,227.12
(3) Presentation of defined contribution plan
Unit: RMB
Decrease in current
Item Opening balance Increase in current period Closing balance
period
1. Basic pension
2,990,245.46 64,601,068.25 66,947,149.77 644,163.94
insurance
2. Unemployment
363,625.39 2,709,693.97 3,060,725.77 12,593.59
insurance
Total 3,353,870.85 67,310,762.22 70,007,875.54 656,757.53
40. Taxes payable
Unit: RMB
202
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Item Closing balance Opening balance
Value-added tax (VAT) 55,281,814.33 180,356,026.72
Enterprise income tax 64,521,114.98 163,408,107.06
Individual income tax 5,611,096.21 6,099,807.10
Urban maintenance and construction tax 5,322,911.41 11,172,773.45
Housing property tax 3,075,518.72 1,747,769.26
Land use tax 165,374.75 278,724.12
Stamp duty 1,713,517.40 1,853,506.57
Education surcharge 2,282,093.47 4,603,782.22
Local education surcharge 1,519,623.59 2,980,941.01
Other taxes 1,796.22 13,505.15
Total 139,494,861.08 372,514,942.66
41. Other payables
Unit: RMB
Item Closing balance Opening balance
Other payables 683,714,082.05 443,477,082.48
Total 683,714,082.05 443,477,082.48
(1) Other payables
1) Other payables presented by nature
Unit: RMB
Item Closing balance Opening balance
Factoring financing of accounts receivable
49,479,996.55 49,160,385.66
with recourse [note]
Temporary receipts payable 175,580,442.10 208,719,173.08
Employee stock ownership plan 180,075,747.64
Security deposits 114,857,152.31 72,880,746.04
Others 163,720,743.45 112,716,777.70
Total 683,714,082.05 443,477,082.48
[Note] The balance refers to the factoring financing of account receivable made by Zoomlion Environmental to the non-bank
financial institutions under the control of Zoomlion Heavy Industry Co., Ltd. However, as non-bank financial institutions have the
right to request Zoomlion Environmental to repurchase the accounts receivable if they are overdue, the accounts receivable shall not
be derecognized by Zoomlion Environmental, and the receipts are recognized as other payables.
2) Significant other payables with account aging over one year
The Company had no significant other payables with account aging over one year at the end of the period
42. Held-for-sale liabilities
□ Applicable √ Not Applicable
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
43. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings due within one year 373,296,214.00 150,862,201.57
Lease liabilities due within one year 5,314,737.81 7,701,219.17
Total 378,610,951.81 158,563,420.74
[Note] The difference between the opening balance and prior year closing balance (December 31, 2020) is detailed in Note V
(XLIV) 1 to the financial statements.
44. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Hedging instruments 7,415,450.00
Output tax to be written off 27,205,068.15 22,448,466.02
Customer rebates 35,759,709.45 25,242,123.71
Total 62,964,777.60 55,106,039.73
45. Long-term borrowings
(1) Category of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
Pledged borrowings 293,820,000.00 81,300,000.00
Guaranteed borrowings 171,964,611.10 197,500,000.00
Unsecured borrowings 300,000,000.00
Guaranteed and mortgaged borrowings 49,230,775.77 94,230,491.81
Guaranteed and pledged borrowings 738,727,380.85 234,212,965.97
Guaranteed, pledged and mortgaged
144,000,000.00 158,400,000.00
borrowings
Total 1,697,742,767.72 765,643,457.78
46. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
Convertible corporate bonds 1,254,962,176.00 1,199,466,109.60
Total 1,254,962,176.00 1,199,466,109.60
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(2) Change in bonds payable (excluding preference shares, perpetual bonds and other financial instruments
classified as financial liabilities)
Unit: RMB
Refund
Amortiza
Issued in Interest from
tion of Converte
Issuing Issue Opening the accrued Repayme conversi Closing
Bonds Par value Maturity premium d to
date amount balance current based on nt on of balance
and shares
period par value debt to
discount
equity
Infore
Novemb
Enviro 1,476,18 1,199,46 3,656,09 54,841,0 2,952,41 48,561.6 1,254,96
100.00 er 04, 6 years 86.18
Converti 9,600.00 6,109.60 6.99 35.47 8.21 7 2,176.00
2020
ble Bond
1,476,18 1,199,46 3,656,09 54,841,0 2,952,41 48,561.6 1,254,96
Total -- -- -- 86.18
9,600.00 6,109.60 6.99 35.47 8.21 7 2,176.00
(3) Conditions and time of converting convertible corporate bonds to shares
Under the Approval of the Public Issuance of Convertible Bonds by Infore Environment Technology Group Co., Ltd. issued by
China Securities Regulatory Commission (Zheng Jian Xu Ke [2020] 2219) on September 10, 2020, on November 4, 2020, the
Company publicly issued convertible bonds of RMB 1,476,189,600, with a total issuance of 14,761,896 sheets, and a duration of 6
years. The coupon rate of the convertible bonds issued this time is 0.20% in the first year, 0.50% in the second year, 0.80% in the
third year, 1.50% in the fourth year, 1.80% in the fifth year, and 2.00% in the sixth year. Interest of the convertible corporate bonds is
paid once a year, and principal and the last year’s interest are paid at maturity. The Company will redeem all convertible bo nds not
converted by investors at the 110% of the par value (including the last year’s interest) within 5 trading days upon maturity of the
convertible bonds issued this time.
The duration of the convertible bonds issued this time is 6 years from the date of issuance, that is, from November 4, 2020 to
November 3, 2026. The initial conversion price of the convertible bonds issued this time is RMB 8.31per share; the conversion
period of the convertible bonds issued this time starts from the first trading day (May 10, 2021), six months after the issuance ends on
November 10, 2020, to the maturity date of the convertible bonds (November 3, 2026).
As of December 31 2021, total 583 Infore Convertible Bonds were converted to ordinary A shares of the Company, with
accumulated converted share of 7,025 shares. On the basis of the difference between the aggregate of convertible bonds converted in
the period and the carrying amount of other equity instruments and the addition in share capital due to conversion to shares, the
Company recognized capital reserve (share premium) of RMB 52,079.08.
47. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Outstanding lease payments 20,701,888.38 27,297,099.21
Less: Unrecognized financing cost -2,178,148.28 -4,053,250.60
Total 18,523,740.10 23,243,848.61
[Note] The difference between the opening balance and prior year closing balance (December 31, 2020) is detailed in Note V
(XLIV) 1 to the financial statements.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
48. Long-term payables
Unit: RMB
Item Closing balance Opening balance
Special payables 315,735,814.91 255,735,814.91
Total 315,735,814.91 255,735,814.91
(1) Special payables
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance Cause
period period
Special funds for
Loan funds from
treasury bond 3,000,000.00 3,000,000.00
treasury bonds
projects
Special funds for Government special
Jiayu Sewage 123,015,774.58 53,000,000.00 176,015,774.58 funds for PPP
Treatment Project projects
Special funds for Government special
Tongshan Sewage 129,720,040.33 7,000,000.00 136,720,040.33 funds for PPP
Treatment Project projects
Total 255,735,814.91 60,000,000.00 315,735,814.91 --
49. Long-term employee benefits payable
□ Applicable √ Not Applicable
50. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Cause
Estimated liabilities provision
was made based on the first-
Pending litigation 1,000,000.00 instance judgment against
Hebei Aohan Engineering
Consulting Co., Ltd.
Credit guarantees 3,129,793.85 461,553.82 -
Total 3,129,793.85 1,461,553.82 --
51. Deferred income
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance Cause
period period
Government
Governmental
96,734,819.84 9,732,910.86 4,831,738.05 101,635,992.65 subsidies related to
subsidies
assets/ income
Total 96,734,819.84 9,732,910.86 4,831,738.05 101,635,992.65 --
Items involving government subsidies
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Unit: RMB
Amount
Charged
included in Amount Related to
Opening Increase in against cost Other
Liabilities non- included in Closing balance assets/
balance the period and changes
operating other income income
expenses
income
Special
subsidies for
Xiantao Waste 10,662,582. Related to
726,531.48 9,936,051.24
Power 72 assets
Generation
Project
Incremental tax
incentives for 8,534,520.0 Related to
948,280.00 7,586,240.00
technological 0 assets
transformation
Urban sewage
and garbage
treatment
facilities and 4,905,838.8 Related to
449,688.41 4,456,150.42
sewage pipe 3 assets
network
engineering
projects
Special funds
for air pollution Related to
900,000.00 100,000.00 800,000.00
prevention and assets
control
The Fifth batch
of Special Funds
for Raising 1,000,000.0 Related to
1,000,000.00
Manufacturing 0 assets
Capacity in
Hunan Province
Xiantao Sludge
17,700,000. Related to
Harmless 17,700,000.00
00 assets
Treatment Plant
Shouxian
Domestic Waste
14,037,333. Related to
Incineration 1,002,666.71 13,034,666.58
29 assets
Power Plant
Project
Urban and rural
domestic waste
transfer, kitchen
waste resource 11,058,965. Related to
211,034.48 10,847,931.04
utilization and 52 assets
harmless
treatment
projects
No. 2 Sewage
Treatment Plant
and Supporting
Pipe Network 7,660,000.0 Related to
7,660,000.00
Projects in 0 assets
Daban Town,
Bahrain Right
Banner
The Second
Batch of Awards 5,784,474.0 41,317.67 5,743,156.33
Related to
for Rental 0 assets
Housing in the
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
High-tech Zone
The Third Batch
of Subsidies for
Technological 2,500,000.0 Related to
2,500,000.00 437,500.00 4,562,500.00
Transformation 0 assets
of Industrial
Enterprises
Key projects of
enterprise
intelligent Related to
783,962.62 913,700.00 169,705.18 1,527,957.44
transformation assets
of 2018 and
2019
Subsidies for
enterprise Related to
857,142.86 142,857.14 714,285.72
technological assets
transformation
Special subsidy
for ecological
civilization
construction
under the Related to
2,200,000.00 2,200,000.00
investment plan assets
within 2020
budget of the
central
government
Research and
application of
water quality Related to
1,400,000.00 1,400,000.00
environmental assets
monitoring
technology
Provincial
Related to
Kunpeng plan 1,200,000.00 144,250.40 1,055,749.60
assets
support fund
Soft ionization
of VOCS in air -
development
and
demonstration
Related to
application of 425,000.00 70,833.33 354,166.67
assets
high resolution
on-line detection
time of flight
mass
spectrometry
Construction
and application
Related to
of industrial 424,343.21 7,898.45 416,444.76
assets
Internet
platform
The third batch
of special funds
for raising
Related to
manufacturing 424,343.21 7,898.45 416,444.76
assets
power in Hunan
Province in
2021
The fourth batch Related to
of special funds 131,788.55 2,230.33 129,558.22
assets
for raising
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
manufacturing
power in Hunan
Province in
2021
Provincial
special fund for
Related to
modern service 113,735.89 19,046.02 94,689.87
assets
industry in high-
tech zone
Support fund
from central
10,000,000. Related to
government for 10,000,000.00
00 income
Kaili PPP
projects
Funds for
national key Related to
350,000.00 350,000.00
R&D program income
projects of 2017
96,734,819.
Sub-total 9,732,910.86 4,831,738.05 101,635,992.65
84
[Note] Details of government grants included in profit or loss in the current period are set out in Note VII, 84 to the financial
statements.
52. Other non-current liabilities
□ Applicable √ Not Applicable
53. Share capital
Unit: RMB
Increase/decrease in the current period (+/-)
Opening Shares as Shares as Closing
balance dividend dividend balance
New issues Others Sub-total
converted from converted from
profit capital reserves
Total number 3,163,062,146. 3,175,734,760.
12,672,614.00 12,672,614.00
of shares 00 00
Other statements:
1) In the current year, the Company implements the Proposal on Matters Related to the Exercise in the Second Exercise Period
of the Phase II Stock Option Incentive P lan and a total of 3 incentive subjects subscribed a total of 18,200 shares, resulting in
increase of RMB 18,200.00 in share capital and increase of RMB 148,330.00 in capital premium (share premium).
2) In the current year, the Company implements the Proposal on Matters Related to the Exercise in the Second Exercise Period
of the Phase III Stock Option Incentive Plan and a total of 218 incentive subjects subscribed a total of 16,384,380 shares. The share
increased by 16,384,380 shares. As of December 31, 2021, the Company received share subscription amount of RMB 78,666,759.58
from the incentive subjects, resulting in increase of RMB 12,647,389.00 in share capital and increase of RMB 66,019,370.58 in
capital premium (share premium). The Company has not received the subscription payment from the rest incentive subjects, which is
still in the account of China Securities Depository and Clearing Company Limited.
3) As of December 31, 2021, convertible corporate bonds with total par value of RMB 58,300 were converted to 7,025 shares of
ordinary A shares, resulting in recognition of capital premium (share premium) of RMB 52,079.08.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
54. Other equity instruments
(1) Basic information of preference shares, perpetual bonds and other financial instruments outstanding at
the end of the period
□ Applicable √ Not Applicable
(2) Changes in preference shares, perpetual bonds and other financial instruments outstanding at the end
of the period
Unit: RMB
At the beginning of the
Outstanding Increase in current period Decrease in current period At the end of the period
period
financial
instruments Carrying Carrying Carrying Carrying
Quantity Quantity Quantity Quantity
amount amount amount amount
Convertible
266,939,831. 266,929,289.
corporate 14,761,896 583 10,542.41 14,761,313
65 24
bonds
266,939,831. 266,929,289.
Total 14,761,896 583 10,542.41 14,761,313
65 24
[Note] As of December 31, 2021, convertible corporate bonds with total par value of RMB 58,300 were converted to ordinary A
shares, resulting in decrease of RMB 10,542.41 in other equity instruments.
Other statements:
55. Capital reserve
Unit: RMB
Decrease in current
Item Opening balance Increase in current period Closing balance
period
Capital premium (share
9,655,918,551.23 62,844,934.84 9,718,763,486.07
premium)
Other capital reserve 51,823,325.26 10,348,242.29 8,139,189.87 54,032,377.68
Total 9,707,741,876.49 73,193,177.13 8,139,189.87 9,772,795,863.75
Other descriptions, including changes for the period and explanation of reason for the change:
1) Increase in capital premium (share premium) mainly represents:
① Other capital reserve of RMB 8,139,189.87 arising from original share-based payment upon expiry of vesting period of the
stock incentive plan is transferred to capital premium (share premium);
② The capital premium (share premium) increased by RMB 66,167,700.58 in the current period. Details are set out in Note VII,
53 to the financial statements.
③ The increase of RMB 52,079.08 in capital premium (share premium) represents that convertible corporate bonds with total
par value of RMB 58,300 were converted to 7,025 shares of ordinary A shares, resulting in recognition of capital premium (sha re
premium) of RMB 52,079.08.
2) The increase in other capital reserve in the period represents that: stock incentive expenses of RMB 10,737,181.92 was
recognized under the stock incentive plan, including RMB 10,348,242.29 included in capital reserve - other capital reserve, and RMB
388,939.63 included in minority interests. Details are set out in Note XIII to the financial statements. The decrease of RMB
8,139,189.87 in other capital reserve in the current period is detailed in the description of increase in capital premium (share
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
premium).
56. Treasury stock
Unit: RMB
Decrease in current
Item Opening balance Increase in current period Closing balance
period
Treasury stock 8,920,597.83 446,383,180.08 455,303,777.91
Total 8,920,597.83 446,383,180.08 455,303,777.91
Other descriptions, including changes for the period and explanation of reason for the change:
Increase in the period represents that:
1) According to the proposal on repurchase the Company's shares deliberated and approved by the 3rd interim meeting of the
ninth session of Board of Directors on April 13, 2020, the Company decided to repurchase the shares by self-financing in the manner
of centralized bidding trading. The Company had repurchased cumulative 1,137,524 shares in the manner of centralized bidding
trading in the prior period, with total payment of total RMB 8,920,597.83 (exclusive of transaction cost). In the current period, the
Company additional repurchased 6,496,614 shares in the manner of centralized bidding trading, with total additional payment of
RMB 50,934,453.02. Therefore, the Company has repurchased total 7,634,138 shares with total payment of RMB 59,855,050.85.
2) According to the Proposal on Repurchase the Company's Shares deliberated and approved by the 12th interim meeting of the
ninth session of board of directors on April 8, 2021, the Company decided to repurchase the shares by self-financing in the manner of
centralized bidding trading. In the current period, the Company repurchased total 51,342,096 shares with total payment of RMB
395,448,727.06. As of December 31, 2021, the Company has completed the implementation of the share repurchase plan.
57. Other comprehensive income
Unit: RMB
Current period actual
Less: Amount Less: Amount
recorded in recorded in other
Attributabl
other comprehensive Attributabl
Opening Pre-tax Less: e to Closing
Item comprehensive income in the prior e to the
balance amount Income minority balance
income in the period and Parent
incurred for tax shareholde
prior period and transferred to Company,
the period expense rs, net of
transferred to retained earnings net of tax
tax
profit/loss in the in the current
current period period
I. Other
comprehensive - - -
income that can't be 4,280,000.0 4,280,000. 4,280,00
reclassified to profit or 0 00 0.00
loss
Changes in fair value
- - -
of other entity
4,280,000.0 4,280,000. 4,280,00
instrument
0 00 0.00
investments
Total other - - -
comprehensive 4,280,000.0 4,280,000. 4,280,00
income 0 00 0.00
Other description, including the adjustments for the effective portion of cash flow hedging profit or loss transferred to the initial
recognition amount of the hedged items:
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
58. Special reserve
Unit: RMB
Decrease in current
Item Opening balance Increase in current period Closing balance
period
Work safety fund 7,434,025.58 7,434,025.58
Total 7,434,025.58 7,434,025.58
59. Surplus reserve
Unit: RMB
Decrease in current
Item Opening balance Increase in current period Closing balance
period
Statutory surplus reserve 232,701,943.56 64,052,940.00 296,754,883.56
Total 232,701,943.56 64,052,940.00 296,754,883.56
Description of surplus reserve, including changes for the period and explanation of reason for the change:
The increase of RMB 64,052,940.00 in surplus reserve represents the statutory surplus reserve of RMB 64,052,940.00
appropriated at 10% of the net profit of the Company for the current year.
60. Retained profits
Unit: RMB
Item Current period The prior period
Retained profits at the beginning of the period
3,558,688,885.55 2,520,329,621.90
after adjustment
Add: Net profits attributable to owners of the
728,467,910.42 1,386,476,099.73
Parent Company
Less: Appropriation to statutory surplus reserve 64,052,940.00
Ordinary share dividends payable 372,493,172.52 348,116,836.08
Retained profits at the end of the period 3,850,610,683.45 3,558,688,885.55
61. Operating income and operating costs
Unit: RMB
Current period actual Amount for the prior period
Item
Income Cost Income Cost
Main Business 11,755,843,043.12 9,174,730,011.41 14,273,213,235.36 10,720,797,390.49
Others 57,694,401.36 35,588,414.96 58,811,840.04 45,491,568.51
Total 11,813,537,444.48 9,210,318,426.37 14,332,025,075.40 10,766,288,959.00
Whether the lower of the audited net profit before and after non-recurring profit or loss is negative
□ Yes √ No
Revenue related information
Unit: RMB
Category of contract Revenue from contracts with customers Total
Type of goods 11,813,150,974.68 11,813,150,974.68
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Including: Smart sanitation 9,237,262,348.48 9,237,262,348.48
Others 2,575,888,626.20 2,575,888,626.20
Categorized by geographic location of
11,813,150,974.68 11,813,150,974.68
business
Including: Domestic 11,770,316,600.94 11,770,316,600.94
Overseas 42,834,373.74 42,834,373.74
Categorized by the time of transfer of
11,813,150,974.68 11,813,150,974.68
goods
Including: Revenue recognized at a point 7,912,717,984.99 7,912,717,984.99
in time
Revenue recognized over time 3,900,432,989.69 3,900,432,989.69
Information of performance obligations:
Details are set out in "Note V Significant Accounting Policies and Accounting Estimates: 39 Revenue" in Part X Financial
Statements of this report.
Information of transaction price allocated to remaining performance obligations:
The revenue corresponding to the performance obligations that have been entered into but not fulfilled or not completed fulfilled
at the end of the reporting period is RMB 38.596 billion, including RMB 35.556 billion expected to be recognized in 2022; RMB
3.185 billion expected to be recognized in 2023; and RMB 3.222 billion expected to be recognized in 2024.
Other statements
62. Taxes and surcharges
Unit: RMB
Item Current period actual Amount for the prior period
Urban maintenance and construction tax 20,078,805.96 31,932,708.59
Education surcharge 8,704,420.76 13,763,632.17
Housing property tax 6,991,844.08 6,046,933.52
Land use tax 8,241,902.89 8,949,626.89
Vehicle and vessel use tax 1,380,035.94 578,488.72
Stamp duty 3,049,851.77 4,012,840.78
Local education surcharge 5,684,439.06 9,173,301.02
Environmental protection tax 10,786.17 3,298.30
Others 1,728.81
Total 54,143,815.44 74,460,829.99
63. Selling expenses
Unit: RMB
Item Current period actual Amount for the prior period
Employee benefits 320,344,321.96 308,668,531.58
Marketing expenses and agency fee 203,886,678.86 217,705,086.93
Office expenses 52,439,230.50 66,589,757.23
Business entertainment expenses 45,787,322.29 60,699,969.88
Vehicle usage fees 34,084,353.47 42,291,788.33
Traveling expenses 29,426,404.02 35,222,537.93
Bidding & tendering expenses 27,560,842.44 41,237,901.47
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
After-sale service expenses 6,529,791.01 7,898,372.76
Depreciation and amortization expenses 1,634,177.49 2,203,528.84
Share-based payment 2,009,420.94 1,528,333.10
Others 15,131,028.07 17,243,205.46
Total 738,833,571.05 801,289,013.51
64. Administrative expenses
Unit: RMB
Item Current period actual Amount for the prior period
Employee benefits 308,636,988.29 270,586,381.78
Depreciation and amortization expenses 90,950,246.67 82,337,180.72
Agency consulting fees 30,647,767.32 55,508,011.48
Office expenses 57,223,541.20 47,382,856.32
Business entertainment expenses 44,724,844.78 26,542,380.63
Traveling expenses 13,652,785.76 10,444,833.47
Vehicle usage fees 10,477,269.96 7,732,891.83
Repair fees 2,929,951.84 6,350,097.09
Share-based payment 4,002,420.59 5,634,842.48
Others 22,107,591.16 23,947,210.32
Total 585,353,407.57 536,466,686.12
65. R&D expenses
Unit: RMB
Item Current period actual Amount for the prior period
Employee benefits 159,381,200.38 118,576,852.62
Direct inputs 58,423,533.28 91,469,017.06
Other expenses 41,705,479.82 43,355,945.62
Share-based payment 3,108,913.81 1,275,516.89
Total 262,619,127.29 254,677,332.19
66. Financial expenses
Unit: RMB
Item Current period actual Amount for the prior period
Interest expense 149,868,429.63 136,661,706.73
Interest income -107,324,690.38 -94,482,738.64
Exchange gains or losses 2,001,825.46 708,908.76
Others 14,059,239.82 23,233,454.74
Total 58,604,804.53 66,121,331.59
67. Other Income
Unit: RMB
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Sources of other income Current period actual Amount for the prior period
Government subsidies related to assets 4,481,738.05 3,612,643.51
Government subsidies related to income 76,124,682.16 70,086,902.87
Refund of handling fees for withholding
748,344.55 576,781.45
individual income tax
Weighted deduction of input tax 2,186,407.75
Total 83,541,172.51 74,276,327.83
68. Investment Income
Unit: RMB
Item Current period actual Amount for the prior period
Income from long-term equity investments
36,885,135.08 41,578,662.81
under equity method
Investment income from disposal of long-term
8,040,787.90 488,224.46
equity investments
Investment income from holding the held-for-
11,250,000.00
trading financial assets
Performance compensation 163,460,620.00 839,195.26
Gains on wealth management products 29,170,261.66 23,771,715.03
Others 2,377,190.95 400,872.53
Total 239,933,995.59 78,328,670.09
69. Gains on net exposure hedging
□ Applicable √ Not Applicable
70. Gains on changes in fair value
Unit: RMB
Sources of gains on changes in fair value Current period actual Amount for the prior period
Trading financial assets -73,146,774.32 -89,949,855.53
Gains or losses on ineffective portion of
72,100.27 -5,769,445.94
outstanding fair value hedges
Total -73,074,674.05 -95,719,301.47
71. Impairment loss of credit
Unit: RMB
Item Current period actual Amount for the prior period
Loss on bad debts -95,707,579.99 -119,100,867.26
Loss on credit guarantee -2,668,240.03 -461,553.82
Total -98,375,820.02 -119,562,421.08
72. Impairment losses on assets
Unit: RMB
215
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Item Current period actual Amount for the prior period
II. Losses on decline in value of
inventories or impairment of cost to fulfill -21,599,097.67 -36,270,934.35
a contract
V. Impairment losses on fixed assets -1,336,643.39
X. Impairment losses on intangible assets -20,185,580.19
XI. Impairment losses of goodwill -194,617,014.59 -25,405,362.30
XII. Impairment losses on contract assets -5,154,976.05 2,738,164.92
XIII. Others -9,569,407.61 -2,018,144.84
Total -230,940,495.92 -82,478,500.15
73. Gains on disposal of assets
Unit: RMB
Sources of gains on disposal of assets Current period actual Amount for the prior period
Gains on disposal of fixed assets -2,254,626.67 -1,787,925.37
Gains on disposal of construction in
1,092,784.45
progress
Total -1,161,842.22 -1,787,925.37
74. Non-operating income
Unit: RMB
Amount included in non-
Item Current period actual Amount for the prior period recurring profit or loss for the
period
Gains from retirement of non-
883,148.89 77,383.74 883,148.89
current assets
Penalty and compensation
5,865,087.13 4,335,373.16 5,865,087.13
income
Others 3,279,788.40 5,431,262.79 3,279,788.40
Total 10,028,024.42 9,844,019.69 10,028,024.42
75. Non-operating expenses
Unit: RMB
Amount included in non-
Item Current period actual Amount for the prior period recurring profit or loss for the
period
Donations 2,446,175.58 10,428,048.44 2,446,175.58
Losses on retirement of non-
1,424,842.60 40,814,493.09 1,424,842.60
current assets
Special fund for local water
3,814,764.68 134,126.33
conservancy construction
Others 4,100,671.20 6,853,056.19 4,100,671.20
Total 11,786,454.06 58,229,724.05 7,971,689.38
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
76. Income tax expenses
(1) Schedule of income tax expenses
Unit: RMB
Item Current period actual Amount for the prior period
Current income tax expense 102,531,906.08 240,674,591.23
Deferred income tax expense -49,028,417.97 -33,103,177.47
Total 53,503,488.11 207,571,413.76
(2) Reconciliation of accounting profit and income tax expenses
Unit: RMB
Item Current period actual
Total profit 821,828,198.48
Income tax expense calculated at statutory/applicable tax rate 205,457,049.62
Effects of different tax rates applied by subsidiaries -120,536,448.40
Effect of prior income tax reconciliation -16,697,363.73
Effect of non-taxable income -14,748,654.06
Effect of non-deductible costs, expenses and losses 5,653,209.37
Effect of utilizing deductible losses previously not recognized as
-37,647,884.38
deferred tax assets
Effect of deducible temporary differences or deductible losses
65,230,044.84
not recognized as deferred tax assets
Effect of weighted deduction -33,206,465.15
Income tax expenses 53,503,488.11
77. Other comprehensive income
Details are set out in Note VII, 57.
78. Items in the cash flow statement
(1) Other cash receipts relating to operating activities
Unit: RMB
Item Current period actual Amount for the prior period
Receipts of deposits for notes, letters of
528,970,066.36 546,629,420.18
credit and letters of guarantee
Receipts of government grants 64,060,624.96 101,409,788.44
Receipts of security deposits 123,421,879.05 87,547,183.94
Recovery of petty cash and temporary
47,474,118.30 53,990,787.31
advance payment receivable
Temporary receipts payable 77,741,104.34 97,576,945.00
Recovery of funds in escrow accounts 945,226.16 957,256.52
Receipts of interest income 34,375,977.08 32,491,002.22
Receipts of principal of factoring financing 1,177,976,505.96 192,699,970.39
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
and finance lease
Receipts of principal and interest of
714,576,527.78
certificate of time deposit
Repayments from Foshan Yingtong
99,092,452.39
Electrical Materials Co., Ltd.
Others 55,604,278.04 40,191,716.87
Total 2,924,238,760.42 1,153,494,070.87
(2) Other cash payments relating to operating activities
Unit: RMB
Item Current period actual Amount for the prior period
Payments for deposits for notes, letters of
386,586,903.23 531,970,066.36
credit and letters of guarantee
Operating period expenses 564,282,900.37 742,930,598.43
Security deposits 64,552,986.72 105,356,641.82
Payments for petty cash and temporary
75,087,728.42 69,592,540.81
advance payment receivable
Payments for principal of factoring
1,322,074,716.14 614,614,522.83
financing and finance lease
Temporary receipts payable 120,319,766.85 12,179,242.35
Certificate of time deposit 50,000,000.00 700,000,000.00
Funds allocated to escrow accounts 4,550,799.82 945,226.15
Others 19,414,654.23 4,876,929.24
Total 2,606,870,455.78 2,782,465,767.99
(3) Other cash receipts relating to investing activities
Unit: RMB
Item Current period actual Amount for the prior period
Redemption of financial products 4,730,043,650.04 5,009,700,000.00
Receipts of special government funds for
60,000,000.00 67,335,291.42
PPP projects
Receipts of futures margin 12,531,843.01 4,198,085.50
Receipts of compensation from Tengine
Innovation (Beijing) Monitoring 839,195.26
Instrument Co., Ltd.
Receipts of loan principal and interest 47,541,031.18 77,860,846.84
Total 4,850,116,524.23 5,159,933,419.02
(4) Other cash payments relating to investing activities
Unit: RMB
Item Current period actual Amount for the prior period
Purchase of financial products 4,728,990,700.00 5,009,700,000.00
Payments of margin for futures trading 23,440,407.33 13,498,236.44
Payments of equity trading margin to
36,000,000.00
Property Rights Transaction Center
218
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Payments of loan principal 12,930,076.27
Cash outflows from disposal of
1,450,610.39
subsidiaries
Total 4,789,881,717.72 5,036,128,312.71
(5) Other cash receipts relating to financing activities
Unit: RMB
Item Current period actual Amount for the prior period
Receipts of payments for employee stock
180,000,000.00 6,100,000.00
ownership plan
Loan amounts of accounts receivable
49,479,996.55
factoring with recourse right
Receipts of loans 3,600,000.00 1,780,000.00
Total 233,079,996.55 7,880,000.00
(6) Other cash payments relating to financing activities
Unit: RMB
Item Current period actual Amount for the prior period
Repurchase of treasury shares 446,383,180.08 8,920,597.83
Factoring service fees and handling fees 1,059,316.17 6,325,532.07
Acquisition of minority interests of
Zhejiang Shangfeng Special Blower 18,200,000.00
Industrial Co., Ltd.
Rental payments 6,345,974.18
Others 364,129.20 4,595,701.09
Total 454,152,599.63 38,041,830.99
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information Amount for the current period Amount for the prior period
1. Reconciliation of net profit to cash flows
-- --
from operating activities:
Net profit 768,324,710.37 1,429,820,654.73
Add: Provision for impairment of 329,316,315.94 202,040,921.23
assets
Depreciation of fixed assets, 169,587,581.86 132,977,279.08
depletion of oil and gas assets and
depreciation of bearer biological assets
Depreciation of right-of-use 5,929,711.33
assets
Amortization of intangible assets 364,198,624.40 329,434,176.13
Amortization of long-term 12,295,429.49 4,479,283.29
deferred expenses
Losses from disposal of fixed 1,161,842.22 1,787,925.37
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
assets, intangible assets and other long-term
assets (gains are indicated by "-")
Losses from retirement of fixed 541,693.71 40,737,109.35
asset (gains are indicated by "-")
Losses from changes in fair value 73,074,674.05 95,719,301.47
(gains are indicated by "-")
Financial expenses (income is 133,836,548.78 101,148,109.13
indicated by "-")
Investment loss (income is -240,822,713.67 -83,480,868.78
indicated by "-")
Decrease in deferred tax assets -14,295,043.84 -17,493,252.94
(increase is indicated by "-")
Increase in deferred tax liabilities -44,875,587.45 -41,158,220.03
(decrease is indicated by "-")
Decrease in inventories (increase -51,110,526.14 -229,881,454.67
is indicated by "-")
Decrease in operating receivables 632,657,980.48 -2,146,572,286.81
(increase is indicated by "-")
Increase in operating payables -1,367,425,471.66 1,817,968,802.17
(decrease is indicated by "-")
Others 36,822,950.26 51,186,613.03
Net cash flows from operating
809,218,720.13 1,688,714,091.75
activities
2. Material investing and financing activities
-- --
not involving cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets held under finance
lease
3. Net change in cash and cash equivalents: -- --
Closing balance of cash 4,118,746,885.72 4,657,826,099.23
Less: Opening balance of cash 4,657,826,099.23 2,611,680,947.69
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
-539,079,213.51 2,046,145,151.54
equivalents
(2) Net cash payments to acquire subsidiaries in the current period
□ Applicable √ Not Applicable
(3) Net cash receipts from disposal of subsidiaries in the current period
Unit: RMB
Amount
Cash and cash equivalent received in the current period from
92,500,000.00
disposal of subsidiaries in the current period
Of which: --
Including: Hunan Ningxiang Renhe Garbage Comprehensive 92,500,000.00
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Treatment Co., Ltd.
Less: Cash and cash equivalents held by the subsidiary at the date of
65,853.93
losing control
Of which: --
Including: Hunan Ningxiang Renhe Garbage Comprehensive
65,853.93
Treatment Co., Ltd.
Add: Cash and cash equivalents received in the current period from
353,163,167.89
disposal of subsidiaries in the prior periods
Of which: --
Including: Zhejiang Shangfeng Wind Energy Co., Ltd. 353,163,167.89
Net cash receipts from disposal of subsidiaries 445,597,313.96
(4) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 4,118,746,885.72 4,657,826,099.23
Including: Cash on hand 89,806.02 147,826.76
Bank deposits that are readily
4,118,371,038.72 4,622,411,287.34
available for payment
Other cash and bank balances
286,040.98 35,266,985.13
that are readily available for payment
III. Closing balance of cash and cash
4,118,746,885.72 4,657,826,099.23
equivalents
Other statements:
As of December 31, 2020, balance of cash and bank balances amounted to RMB 5,904,127,970.85, while balance of cash and
cash equivalents amounted to RMB 4,657,826,099.23. The difference of RMB 1,246,301,871.62 included deposit for notes
amounting to RMB 458,086,264.82, deposit for letters of guarantee amounting to RMB 75,383,801.54, deposit for migrant workers'
wages amounting to RMB 922,334.53, large amount certificate of time deposit amounting to RMB 709,048,611.10, fund frozen due
to litigation amounting to RMB 2,837,968.00 and engineering escrow accounts that are not available for separate use amounting to
RMB 22,891.63, which were not cash and cash equivalents.
As of December 31, 2021, balance of cash and bank balances amounted to RMB 4,583,245,371.02, while balance of cash and
cash equivalents amounted to RMB 4,118,746,885.72. The difference of RMB 464,498,485.30 included deposit for notes amounting
to RMB 304,539,128.51, deposit for letters of guarantee amounting to RMB 86,544,774.72, deposit for migrant workers' wages
amounting to RMB 925,205.09, ETC deposit amounting to RMB 3,000.00, large amount certificate of time deposit amounting to
RMB 67,743,888.90, fund frozen due to litigation amounting to RMB 1,109,678.44 and engineering escrow accounts that are not
available for separate use amounting to RMB 3,632,809.64, which were not cash and cash equivalents.
80. Notes to items in the statement of changes in owners' equity
□ Applicable √ Not Applicable
81. Assets with restricted ownership and use rights
Unit: RMB
Carrying amounts at the end of the
Item Reason for restriction
period
221
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Deposits, certificate of deposit, frozen
Cash and cash equivalents 464,498,485.30
litigation preservation, escrow account
Fixed assets 514,793,694.20 Mortgaged
Intangible assets 215,913,237.17 Mortgaged
Accounts receivable 226,481,841.35 Pledged
Notes receivable - bank acceptance 5,050,609.92 Pledged
Notes receivable - trade acceptance 14,668,452.95 Pledged
Receivable financing 143,994,957.80 Pledged
Long-term account receivable and non-
49,479,996.55 Factoring financing with recourse
current assets due within one year
100% equity interests of Funan Greenlander
63,725,949.84 Mortgaged [Note]
Environmental Protection Co., Ltd.
100% equity interests of Shouxian
83,655,768.30 Mortgaged [Note]
Greenlander New Energy Co., Ltd.
100% equity interests of Xiantao
Greenlander Environmental Protection 218,180,606.50 Mortgaged [Note]
Power Co., Ltd.
100% equity interests of Poyang
Greenlander Environmental Protection 61,177,347.25 Mortgaged [Note]
Power Co., Ltd.
100% equity interests of Lianjiang
25,074,902.82 Frozen litigation preservation
Greenlander New Energy Co., Ltd.
Total 2,086,695,849.95 --
[Note] The pledged amount is the net assets of the Company's share of equity.
82. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Unit: RMB
Closing balance in foreign RMB equivalent at the end of
Item Exchange rate
currencies the period
Cash and cash equivalents -- -- 20,787,624.90
Including: USD 561,032.92 6.3757 3,576,977.59
EUR 1,974,427.58 7.2197 14,254,774.80
HKD 3,615,303.95 0.8176 2,955,872.51
Accounts receivable -- -- 5,677,273.66
Including: USD 448,059.16 6.3757 2,856,690.79
EUR 390,678.68 7.2197 2,820,582.87
HKD
Long-term borrowings -- --
Including: USD
EUR
HKD
222
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(2) Description of overseas operating entity, including the disclosure of principal place of operation
overseas, recording currency and basis for determining the recording currency if it is a material overseas
operating entity, and the disclosure of reasons for change of recording currency, if applicable.
□ Applicable √ Not Applicable
83. Hedging
□ Applicable √ Not Applicable
84. Governmental subsidies
(1) Basic information of government subsidies
Unit: RMB
Amount included in
Category Amount Presentation items profit or loss in the
current period
1) Government subsidies related to assets
Shouxian domestic waste incineration power plant project 850,000.00 Other Income 850,000.00
Special subsidies for Xiantao waste power generation project 726,531.48 Other Income 726,531.48
2018 first batch of awards for tax increment from technological
transformation of industrial enterprises in Hunan Province
(painting workshop) 948,280.00 Other Income 948,280.00
The second batch of awards for rental housing in the high-tech
zone 41,317.67 Other Income 41,317.67
Urban and rural domestic waste transfer project 211,034.48 Other Income 211,034.48
2020 third batch of discounted loan interest for technological
transformation of industrial enterprises in Changsha 437,500.00 Other Income 437,500.00
Urban sewage and garbage treatment facilities and sewage pipe
network engineering projects 449,688.41 Other Income 449,688.41
Shouxian domestic waste incineration power generation project 152,666.71 Other Income 152,666.71
Subsidy for key projects of enterprise intelligent transformation
for 2018 - 2020 169,705.18 Other Income 169,705.18
Provincial Kunpeng P lan sponsorship fund 144,250.40 Other Income 144,250.40
2019 Changsha air, soil, water pollution prevention and control
project repository (painting workshop) 100,000.00 Other Income 100,000.00
Subsidies for enterprise technological transformation 142,857.14 Other Income 142,857.14
Construction and application of industrial Internet platform 7,898.45 Other Income 7,898.45
The third batch of special funds for raising manufacturing
power in Hunan Province in 2021 7,898.45 Other Income 7,898.45
Soft ionization of VOCS in air - development and
demonstration application of high resolution on-line detection
time of flight mass spectrometry 70,833.33 Other Income 70,833.33
The fourth batch of special funds for raising manufacturing
power in Hunan Province in 2021 2,230.33 Other Income 2,230.33
Provincial special fund for modern service industry in high-tech
zone 19,046.02 Other Income 19,046.02
Sub-total 4,481,738.05 4,481,738.05
2) Government subsidies related to income and used to
223
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
compensate the Company's costs and expenses or losses
incurred in subsequent periods
Funds for national key R&D program projects of 2017 350,000.00 Other Income 350,000.00
Sub-total 350,000.00 350,000.00
3) Government subsidies related to income and used to
compensate the Company's cost and expenses or losses already
incurred
Value-added tax rebate 22,195,312.61 Other Income 22,195,312.61
Subsidy for KP projects 9,300,000.00 Other Income 9,300,000.00
Special funds for raising manufacturing power in Hunan
Province 7,143,868.24 Other Income 7,143,868.24
Enterprise support funds 7,140,000.00 Other Income 7,140,000.00
Provincial subsidy for new energy vehicles 7,000,000.00 Other Income 7,000,000.00
Policy support for high-tech zone 2,209,000.00 Other Income 2,209,000.00
Subsidy for sludge disposal 3,056,730.58 Other Income 3,056,730.58
Special funds for advanced manufacturing cluster 1,800,000.00 Other Income 1,800,000.00
Job subsidy fund for steady work in the enterprise 1,202,351.97 Other Income 1,202,351.97
Special funds for modern service industry 1,086,264.12 Other Income 1,086,264.12
Key R&D project funds 1,000,000.00 Other Income 1,000,000.00
Strong cluster subsidy 1,000,000.00 Other Income 1,000,000.00
Special funds for industrial development 900,000.00 Other Income 900,000.00
Special funds for promoting high-quality development of
foreign investment 893,100.00 Other Income 893,100.00
Special funds for construction and application of industrial
Internet platform 775,656.79 Other Income 775,656.79
Subsidy for technological transformation projects 749,900.00 Other Income 749,900.00
Special funds for recycling of solid wastes 690,000.00 Other Income 690,000.00
Awards for accelerating scientific and technological innovation 549,000.00 Other Income 549,000.00
Subsidy for intelligent manufacturing 500,000.00 Other Income 500,000.00
Awards for hidden champions corporates 500,000.00 Other Income 500,000.00
Subsidy for talents projects 440,000.00 Other Income 440,000.00
R&D project rewards 424,400.00 Other Income 424,400.00
Project subsidy 350,000.00 Other Income 350,000.00
Key projects funds 348,000.00 Other Income 348,000.00
Rewards from Development and Reform Commission 308,581.00 Other Income 308,581.00
Leading talent program awards 300,000.00 Other Income 300,000.00
Capital market support rewards 300,000.00 Other Income 300,000.00
Special funds for implementation of intellectual property
strategy 268,000.00 Other Income 268,000.00
Scale up rewards 250,000.00 Other Income 250,000.00
Special subsidy for mobile web initiative 200,000.00 Other Income 200,000.00
Special funds for environmental protection enterprises 200,000.00 Other Income 200,000.00
Innovation ability rewards 200,000.00 Other Income 200,000.00
R&D project rewards 200,000.00 Other Income 200,000.00
Research support funds 200,000.00 Other Income 200,000.00
Technology trading reward funds 198,200.00 Other Income 198,200.00
Quality and standardization rewards 170,000.00 Other Income 170,000.00
Other miscellaneous subsidies 1,726,316.85 Other Income 1,726,316.85
Sub-total 75,774,682.16 75,774,682.16
224
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Total 80,606,420.21 80,606,420.21
(2) Return of government subsidies
□ Applicable √ Not Applicable
85. Others
VIII. Change in scope of consolidation
1. Business combination not involving enterprises under common control
□ Applicable √ Not Applicable
2. Business combination involving enterprises under common control
□ Applicable √ Not Applicable
3. Reverse purchase
□ Applicable √ Not Applicable
4. Disposal of subsidiaries
A single disposal of investment in a subsidiary will result in loss of control.
√ Yes □ No
Unit: RMB
Differen
ce
between
the
Other
consider
compreh
ation of Methodo
Gain or ensive
disposal logy and
loss income
and the key
Proporti Carrying incurred related to
share of Fair assumpti
on of amounts from equity
the value of ons for
Proporti Basis remainin of remainin investme
Consider subsidiar remainin determin
Name of on of Mode of Date of determin g equity remainin g equity nts in
ation of y's net g equity ing fair
subsidiar equity equity loss of ing date interests g equity interests previous
equity assets interests value of
y disposed disposal control of loss of on date interests re- subsidiar
disposal correspo on date remainin
(%) control of loss of on date measure ies
nding to of loss of g equity
control of loss of d transferr
investme control interest
(%) control accordin ed to
nt on date
g to fair investme
disposal of loss of
value nt
in control
income
consolid
or loss
ated
financial
statemen
t
Foshan 255,000, Substanti 2,356,92 272,872, 245,000, - Determin
51.00% Selling February 49.00%
Yingtong 000.00 ve 1.46 012.67 000.00 27,872,0 ed
225
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Electrica 28, 2021 transfer 12.67 accordin
l of g to
Materials control equity
Co., Ltd. value of
the
portion
disposed
Hunan
Ningxian
Substanti
g Renhe
Novemb ve
Garbage 92,500,0 25,170,5
100.00% Selling er 01, transfer 0.00% 0.00 0.00 0.00 0
Compreh 00.00 70.60
2021 of
ensive
control
Treating
Co., Ltd.
Determin
Guangdo ed
ng Substanti accordin
Yingling ve - g to
August 4,276,50 4,108,80
Testing 1.00 51.00% Selling transfer 49.00% 4,108,80 0.00 equity
01, 2021 7.83 0.68
Technolo of 0.68 value of
gy Co., control the
Ltd. portion
disposed
Other statements:
Disposal of investment in a subsidiary achieved in stages that involve multiple transactions and will result in loss of contr ol in the
current period.
□ Yes √ No
5. Changes in the consolidation scope due to other reasons
1. Entities brought into the consolidation scope
Mode of Date of Capital Ratio of capital
Company
acquisition acquisition contribution contribution (%)
Xiangtan Yinglian Environmental Industry Co., Ltd. Incorporation March 2021 24,508,110.00 66.00
Jinzhou Yinglian Urban Environmental Sanitation
Incorporation March 2021 12,000,000.00 100.00
Management Co., Ltd.
Handan Yinglian Environmental Sanitation
Incorporation April 2021 2,000,000.00 100.00
Management Co., Ltd.
Ordos Environmental Sanitation Management Co.,
Incorporation July 2021 1,020,000.00 100.00
Ltd.
Luanzhou Yinglian Environmental Service Co., Ltd. Incorporation August 2021 2,000,000.00 100.00
Guangzhou Huadu Yinglian Environment Co., Ltd. Incorporation September 2021 100,000.00 100.00
Fenghuang Yinglian Environmental Service Co.,
Incorporation September 2021 2,000,000.00 100.00
Ltd.
Xinning Yinglian Urban Environmental Service Co.,
Incorporation September 2021 8,000,000.00 100.00
Ltd.
Wanning Yinglian Environmental Industry Co., Ltd. Incorporation October 2021 1,000,000.00 100.00
Foshan Gaoming Yingde Smart City Management
Incorporation October 2021 5,000,000.00 60.00
Co., Ltd.
Huayuan Environmental Sanitation Management
Incorporation November 2021 260,000.00 100.00
Co., Ltd.
Zhongwei Yinglian Urban Environmental Service
Incorporation December 2021 1,000,000.00 70.00
Co., Ltd.
Guangzhou Yingsheng Environmental Sanitation
Incorporation January 2021 [Note] 100.00
Service Co., Ltd.
Yiyang Yinglian Environmental Sanitation
Incorporation January 2021 [Note] 100.00
Management Co., Ltd.
226
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Shenzhen Infore Enviro Robot Co., Ltd. Incorporation February 2021 [Note] 100.00
Sanya Yinghe Environmental Sanitation Service
Incorporation February 2021 [Note] 100.00
Co., Ltd.
Wuhan Infore Zhonghui Environmental Protection
Incorporation February 2021 [Note] 100.00
Technology Co., Ltd.
Chongyang Yinglian Environmental Protection Co.,
Incorporation February 2021 [Note] 100.00
Ltd.
Pu’an Yinghe Environmental Sanitation
Incorporation March 2021 [Note] 100.00
Management Co., Ltd.
Guangzhou Yinglian Environmental Sanitation
Incorporation March 2021 [Note] 100.00
Service Co., Ltd.
Wuhu Infore Zoomlion Environmental Technology
Incorporation March 2021 [Note] 100.00
Co., Ltd.
Suzhou Xiangcheng Yinglian Environmental
Incorporation March 2021 [Note] 100.00
Industry Co., Ltd.
Susong Yinghe Environmental Sanitation
Incorporation April 2021 [Note] 100.00
Management Co., Ltd.
Foshan Shunde Yingsheng Urban Environmental
Incorporation April 2021 [Note] 100.00
Management Co., Ltd.
Taizhou Zhongying Urban Environmental Service
Incorporation May 2021 [Note] 100.00
Co., Ltd.
Liaocheng Yinghe Environmental Sanitation
Incorporation May 2021 [Note] 100.00
Service Co., Ltd.
Shenzhen Tongying Environmental Industry Co.,
Incorporation May 2021 [Note] 100.00
Ltd.
Shenzhen Zhongfu Environmental Technology Co.,
Incorporation April 2021 [Note] 100.00
Ltd.
Wuhai Yinglian Environmental Engineering Co.,
Incorporation May 2021 [Note] 100.00
Ltd.
Jian’ ou Yingsheng Environmental Sanitation
Incorporation June 2021 [Note] 100.00
Management Co., Ltd.
Heping Liansheng Environmental Development Co.,
Incorporation June 2021 [Note] 100.00
Ltd.
Zhongshan Yinglian Environmental Sanitation
Incorporation June 2021 [Note] 100.00
Management Co., Ltd.
Ruili Yinglian Environmental Industry Co., Ltd. Incorporation July 2021 [Note] 100.00
Zongyang Tongying Environmental Sanitation
Incorporation July 2021 [Note] 100.00
Management Co., Ltd.
Guangdong Infore Smart Technology Co., Ltd. Incorporation July 2021 [Note] 100.00
Fengxian Zhongying Urban Environmental
Incorporation July 2021 [Note] 100.00
Sanitation Management Co., Ltd.
Shanghai Yingwofeng Environment Technology
Incorporation July 2021 [Note] 100.00
Development Co., Ltd.
Yichang Yinglian Urban Environmental Service
Incorporation July 2021 [Note] 100.00
Co., Ltd.
Huai’ an Yinghe Environment Technology Co., Ltd. Incorporation July 2021 [Note] 100.00
Zhangjiagang Zhongying Environmental
Incorporation August 2021 [Note] 100.00
Development Co., Ltd.
Guangde Yinghe Environmental Sanitation
Incorporation August 2021 [Note] 100.00
Development Co., Ltd.
Foshan Shunde Yinghong Smart Environmental
Incorporation October 2021 [Note] 100.00
Sanitation Management Co., Ltd.
Zhongshan Yinglian Urban Environmental
Incorporation October 2021 [Note] 100.00
Management Co., Ltd.
Taizhou Zhongying Environmental Management
Incorporation October 2021 [Note] 100.00
Co., Ltd.
Weihui Yinglian Environmental Service Co., Ltd. Incorporation October 2021 [Note] 100.00
Baisha Yinghe Environmental Sanitation Service
Incorporation November 2021 [Note] 100.00
Co., Ltd.
Zhoushan Yinghe Environmental Sanitation Service Incorporation November 2021 [Note] 100.00
227
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Co., Ltd.
Wuhan Tongying Environmental Sanitation
Incorporation November 2021 [Note] 100.00
Management Co., Ltd.
Nanchang Yingsheng Environmental Protection
Incorporation November 2021 [Note] 100.00
Service Co., Ltd.
Wuhu Yinghe Environmental Sanitation
Incorporation November 2021 [Note] 100.00
Management Co., Ltd.
Huaibei Yinghe Urban Environmental Service Co.,
Incorporation November 2021 [Note] 100.00
Ltd.
Hanshou Jinglan Environmental Protection Co., Ltd. Incorporation November 2021 [Note] 100.00
Chongqing Tongliang Fenglan Environmental
Incorporation November 2021 [Note] 100.00
Protection Technology Co., Ltd.
Shenzhen Yingli Environmental Sanitation Service
Incorporation December 2021 [Note] 100.00
Co., Ltd.
Guangrao Yinghe Urban Service Co., Ltd. Incorporation December 2021 [Note] 100.00
Anning Tongying Environmental Sanitation Service
Incorporation December 2021 [Note] 100.00
Co., Ltd.
Note: As of December 31, 2021, these companies’ registered capitals have not been contributed
2. Entities excluded from the consolidation scope
Mode of equity disposal Date of equity Net assets on Net profit from the
Company disposal disposal date beginning of the period
to the disposal date
Liling Zhongfeng Environmental De-registration June 29, 2021 -983.54
Industry Co., Ltd.
VII. Interest in other entities
1. Interest in significant subsidiaries
(1) Significant subsidiaries
Name of Main operating Place of Shareholding proportion Acquisition
Business nature
subsidiary place incorporation Direct Indirect method
Zhejiang
Business
Shangfeng
Shaoxing, Shaoxing, Electrical material combination not
Special Blower 60.20%
Zhejiang Zhejiang manufacturing and others under common
Industrial Co.,
control
Ltd.
Business
Greenlander Shenzhen, Shenzhen, Environmental monitoring combination not
70.00%
Environmental Guangdong Guangdong and solid waste treatment under common
control
Funan
Business
Greenlander
Environmental monitoring combination not
Environmental Funan, Anhui Funan, Anhui 100.00%
and solid waste treatment under common
Protection Co.,
control
Ltd.
Xiantao
Business
Greenlander
Environmental monitoring combination not
Environmental Xiantao, Hubei Xiantao, Hubei 100.00%
and solid waste treatment under common
Power Generation
control
Co., Ltd.
Business
Shouxian
Environmental monitoring combination not
Greenlander New Shouxian, Anhui Shouxian, Anhui 100.00%
and solid waste treatment under common
Energy Co., Ltd.
control
228
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Xiantao Yinghe
Environmental Environmental monitoring
Xiantao, Hubei Xiantao, Hubei 74.88% 5.70% Incorporation
Protection Co., and solid waste treatment
Ltd.
Infore
Foshan, Foshan, Environmental monitoring
Technology 100.00% Incorporation
Guangdong Guangdong and solid waste treatment
Company
Foshan Infore
Business
Water
Foshan, Foshan, Environmental monitoring combination not
Environment 100.00%
Guangdong Guangdong and solid waste treatment under common
Investment Co.,
control
Ltd.
Foshan Shunde
Business
Huaqingyuan
Foshan, Foshan, Environmental monitoring combination not
Environmental 100.00%
Guangdong Guangdong and solid waste treatment under common
Protection Co.,
control
Ltd.
Foshan Shunde Business
District Huaying Foshan, Foshan, Environmental monitoring combination not
100.00%
Environmental Guangdong Guangdong and solid waste treatment under common
Water Co., Ltd. control
Foshan Shunde
District Yuanrun Business
Water Foshan, Foshan, Environmental monitoring combination not
100.00%
Environmental Guangdong Guangdong and solid waste treatment under common
Protection Co., control
Ltd.
Foshan Shunde Business
Huabo Foshan, Foshan, Environmental monitoring combination not
100.00%
Environmental Guangdong Guangdong and solid waste treatment under common
Water Co., Ltd. control
Business
Zoomlion combination not
Changsha, Hunan Changsha, Hunan Smart sanitation 100.00%
Environmental under common
control
Changsha
Zoomlion
Changgao Changsha, Hunan Changsha, Hunan Smart sanitation 90.00% 10.00% Incorporation
Environmental
Industry Co., Ltd.
Fujian Nan’an
Yingfeng Urban
Changsha, Hunan Changsha, Hunan Smart sanitation 80.00% Incorporation
Environmental
Service Co., Ltd.
Zhangjiajie
Zoomlion Zhangjiajie, Zhangjiajie,
Smart sanitation 90.00% Incorporation
Environmental Hunan Hunan
Industry Co., Ltd.
Cili County
Zoomlion Huabao
Cili, Hunan Cili, Hunan Smart sanitation 85.00% Incorporation
Environmental
Industry Co., Ltd.
Hanshou
Zoomlion
Hanshou, Hunan Hanshou, Hunan Smart sanitation 90.00% Incorporation
Environmental
Industry Co., Ltd.
Longhui County
Zoomlion
Longhui, Hunan Longhui, Hunan Smart sanitation 100.00% Incorporation
Environmental
Industry Co., Ltd.
229
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Shimen Zoomlion
Environmental Shimen, Hunan Shimen, Hunan Smart sanitation 90.00% Incorporation
Industry Co., Ltd.
Ningbo Infore
Finance Lease Ningbo, Zhejiang Ningbo, Zhejiang Finance lease 100.00% Incorporation
Co., Ltd.
(2) Significant non-wholly-owned subsidiaries
Unit: RMB
Dividend declared to
Holding proportion of Non-controlling
non-controlling Closing balance of non-
Name of subsidiary non-controlling shareholders’ profit or
shareholders in the controlling interest
shareholders loss in the current period
current period
Greenlander
30.00% 3,264,492.53 15,107,030.38
Environmental
(3) Main financial information of significant non-wholly-owned subsidiaries
Unit: RMB
Closing balance Opening balance
Name of
subsidiar Current Non- Non- Non- Non-
Total Current Total Current Total Current Total
y current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Greenlan
der 442,998, 1,445,56 1,888,55 1,195,92 642,276, 1,838,20 399,254, 1,342,61 1,741,87 1,273,82 429,455, 1,703,28
Environ 198.63 0,211.50 8,410.13 4,774.00 868.23 1,642.23 690.58 8,337.55 3,028.13 4,945.87 754.84 0,700.71
mental
Unit: RMB
Current period actual Amount for the prior period
Name of Cash flows Cash flows
Total Total
subsidiary from from
Revenue Net profit comprehensi Revenue Net profit comprehensi
operating operating
ve income ve income
activities activities
Greenlander
352,289,730. 10,881,641.7 10,881,641.7 186,644,835. 181,203,208. 67,222,387.3
Environment 1,458,573.11 1,458,573.11
86 8 8 53 46 0
al
(4) Significant restrictions on usage of the enterprise group’s assets and settlement of the enterprise group’s
liabilities
□ Applicable √ Not Applicable
(5) Financial or other supports provided to the structured bodies included into the consolidation scope
□ Applicable √ Not Applicable
2. Transactions resulting in changes in subsidiaries’ equity but without losing control
□ Applicable √ Not Applicable
230
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
3. Interest in joint arrangements or associates
(1) Significant joint ventures or associates
Shareholding proportion Accounting
Names of joint treatment of
Main operating Place of
ventures or Business nature investment in
place incorporation Direct Indirect
associates joint ventures or
associates
Foshan Yingtong
Electrical
Foshan Foshan Manufacturing 49.00% Equity method
Materials Co.,
Ltd.
(2) Main financial information of significant associates
Unit: RMB
Opening balance/Amount for the prior
Closing balance/Current period actual
period
Current assets 1,217,742,853.56
Non-current assets 207,896,682.32
Total assets 1,425,639,535.88
Current liabilities 785,232,779.36
Non-current liabilities 543,576.58
Total liabilities 785,776,355.94
Minority interests 72,189,124.88
Equity attributable to shareholders of the
567,674,055.06
parent company
Share in net assets based on holding
278,160,286.98
proportion
Adjustment items
-- Goodwill
-- Unrealized profit from internal
transactions
-- Others -27,872,012.67
Carrying amount of equity investments in
250,288,274.31
associates
Having fair value of equity investment in
associates with publicly quoted price
Revenue 2,995,793,551.09
Net profit 13,526,119.01
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income
Dividend received from associates in the
Reporting Period
231
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
(4) Aggregated financial information of insignificant joint venture and associates
Unit: RMB
Opening balance/Amount for the prior
Closing balance/Current period actual
period
Associates: -- --
Total carrying amount of investments 353,292,507.00 318,243,332.69
Proportionate shares in the following items -- --
-- Net Profit 31,596,860.77 41,578,662.81
-- Total Comprehensive Income 31,596,860.77 41,578,662.81
4. Significant joint operations
□ Applicable √ Not Applicable
5. Interest in the structured bodies not included into the consolidation scope
□ Applicable √ Not Applicable
X. Risks related to financial instrume nts
In risk management, the Company aims to seek the appropriate balance between the risks and benefits from its use of financial
instruments and to mitigate the adverse impact of the risks of financial instruments on the Company’s financial performance, so as to
maximize the interest of shareholders and other equity investors. Based on such risk management objec tives, the Company’s risk
management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and
controls, and to monitor risks in a timely and reliable manner, and to control the risk to a certain extent.
The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit risk,
liquidity risk, and market risk. The Management has deliberated and approved policies concerning such risks, details as follows:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to perform
an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date, the Company assesses whether the credit risk on a financial instrument has increased significantly
since initial recognition. When assessing whether the credit risk has increased significantly since initial recognition, the Company
takes into account reasonable and evidence-based information, which is available without undue cost or effort, including qualitative
and quantitative analysis based on historical data, external credit risk rating, and forward-looking information. The Company
determines the changes in default risk of financial instruments during the estimated lifetime through comparison of the default risk at
the balance sheet date and the initial recognition date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly when one or more of the following
qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, at the balance sheet date, the probability of default in the
remaining lifetime has increased by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial position, present or
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
expected changes in technology, market, economy or legal environment that will have significant adverse impact on the debtor’s
repayment ability.
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred, of which the standard is
consistent with that for credit-impairment:
1) Significant financial difficulty of the debtor;
2) A breach of binding clause of contract;
3) It is very likely that the debtor will enter into bankruptcy or other financial restructure;
4) The creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having gran ted to
the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default, loss given default, and exposure at
default. The Company develops a model of the probability of default, loss given default , and exposure at default on the basis of
quantitative analysis of historical data (e.g. counterparty rating, guarantee measures and collateral type, payment method, e tc.) and
forward-looking information.
3. Please refer to section VII 4, 5, 8, 10, 16 and 31 of the notes to the financial statements for details on the reconciliation table
of opening balance and closing balance of provision for losses of financial instrument.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks, the
Company has taken the following measures.
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with relatively high credit
ratings, hence, its credit risk is relatively low.
(2) Receivables
The Company regularly/continuously performs credit assessment on customers using credit settlement method. The Company
selects recognized and credible customers based on credit assessment result, and conducts ongoing monitoring on balance of
receivables, to avoid significant risks of bad debts.
As the Company’s credit risks fall into several business partners and customers, as of December 31, 202 1, 6.26% (December 31,
2020: 8.26%) of the total accounts receivable was due from the top five customers of the Company. The Company has no signific ant
central credit risk.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at the balance
sheet.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter short of funds in meeting obligations associated with cash or other
financial asset settlement. Liquidity risk is possibly attributable to failure in selling financial assets at fair value in a timely manner,
or failure in collecting liabilities from counterparties of contracts, or early redemption of debts, or failure in generating estimated
cash flows.
In order to control such risk, the Company comprehensively utilized various financing tools such as notes settlement, bank
borrowings, etc., combines long-term and short-term financing methods and to optimizes financing structures to maintain a balance
between financing sustainability and flexibility. The Company has obtained credit limit from several commercial banks to meet
working capital requirements and expenditures.
Financial liabilities classification based on remaining lifetime till maturity
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Item Closing balance
Undiscounted contract
Carrying amount Within 1 year 1-3 years Over 3 years
amount
Bank
2,510,063,715.18 2,890,446,695.70 903,057,645.84 823,095,870.05 1,164,293,179.81
borrowings
Notes
2,468,799,189.71 2,468,799,189.71 2,468,799,189.71
payable
Accounts
2,960,061,508.33 2,960,061,508.33 2,960,061,508.33
payable
Other
683,714,082.05 683,714,082.05 683,714,082.05
payables
Lease
23,838,477.91 26,991,613.43 5,689,725.04 9,207,622.33 12,094,266.06
liabilities
Long-term
315,735,814.91 315,735,814.91 315,735,814.91
payables
Bonds
1,254,962,176.00 1,573,618,113.60 7,380,948.00 11,809,516.80 1,554,427,648.80
payable
Sub-total 10,217,174,964.09 10,919,367,017.73 7,028,703,098.97 844,113,009.18 3,046,550,909.58
(continued)
Item Balance at the end of last year
Undiscounted contract
Carrying amount Within 1 year 1-3 years Over 3 years
amount
Bank borrowings 2,574,411,035.90 2,816,579,057.20 1,882,635,329.74 373,683,509.83 560,260,217.63
Held-for-trading
810,300.00 810,300.00 810,300.00
financial liabilities
Notes payable 3,853,175,394.09 3,853,175,394.09 3,853,175,394.09
Accounts payable 3,404,825,085.03 3,404,825,085.03 3,404,825,085.03
Other payables 443,477,082.48 443,477,082.48 443,477,082.48
Long-term
255,735,814.91 255,735,814.91 255,735,814.91
payables
Bonds payable 1,199,466,109.60 1,576,570,492.80 2,952,379.20 7,380,948.00 1,566,237,165.60
Sub-total 11,731,900,822.01 12,351,173,226.51 9,587,875,570.54 381,064,457.83 2,382,233,198.14
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial instruments
due to changes in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial instruments due
to changes in market interest. The Company’s fair value interest risks arise from fixed-rate interest bearing financial instruments,
while the cash flow interest risks arise from floating-rate interest bearing financial instruments. The Company determines the
proportion of fixed-rate financial instruments and floating-rate financial instruments based on the market environment, and maintains
a proper financial instruments portfolio through regular review and monitoring. The Company’s interest risk in cash flows relates
mainly to bank borrowings with floating interest rate.
As of December 31, 2021, balance of borrowings with interest accrued at floating interest rate totaled RMB 1,287,312,619.35
(December 31, 2020: RMB 778,840,801.41). If interest rates had been 50 basis points higher/lower and all other variables were held
constant, the Company’s gross profit and equity will not be significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from fluctuation in fair value or future cash flows of financial instrument resulte d from
changes in exchange rate. The Company mainly operates in mainland China, and main activities are denominated in RMB. Hence,
the Company bears insignificant market risk arising from foreign exchange changes.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Please refer to section VII 82 of notes to financial statements for details in financial assets and liabilities dominated in foreign
currency at the end of the period.
XI. Fair value disclosure
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: RMB
Fair value as of the balance sheet date
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Recurring fair value
-- -- -- --
measurement
(iii) Other entity
15,702,971.01 15,702,971.01
instrument investments
2. Receivables financing 296,379,694.57 296,379,694.57
Total liabilities at
recurring fair value 312,082,665.58 312,082,665.58
measurement
II. Non-recurring fair
-- -- -- --
value measurement
2. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3 fair value
at recurring and non-recurring fair measurement
1. For receivables financing, the Company uses specific valuation technique(s) to determine its fair value based on the face
amount of receivables financing.
2. For other entity instrument investments, cost represents the best estimate of fair value, so the Company uses the cost to
determine its fair value.
XII. Related party relationships and transactions
1. The parent company
Voting right
Name of the parent Place of Holding proportion
Business nature Registered capital proportion over the
company incorporation over the Company
Company
Infore Group Co.,
Foshan, Guangdong Industrial investment 445000 43.55% 43.55%
Ltd.
The Company’s parent company
(1) In July 2021, Infore Holding Group Co., Ltd. Changed its name to Infore Group Co., Ltd. (hereinafter referred to as Infore
Group), which directly holds 11.37% of the Company’s equity, and indirectly holds 32.18% of the Company’s equity through its
wholly-owned subsidiary Ningbo Infore Asset Management Co., Ltd.
(2) The Company’s ultimate controlling party is He Jianfeng, who directly holds 2.01% of the Company’s equity, and indirectly
holds 43.55% of the Company’s equity through Infore Group.
The Company’s ultimate controlling party is He Jianfeng.
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2. The Company’s subsidiaries
Please refer to section Ⅸ of notes for details on the Company’s subsidiaries.
3. Joint ventures and associates of the Company
Please refer to section IX 3 of notes for details on the Company’s significant joint ventures or assoc iates.
Details of other joint ventures or associate carrying out related party transactions with the Company in current period or in preceding
period but with balance in current period are as follows:
Names of joint ventures or associates Relationships with the Company
Tengine Innovation (Beijing) Monitoring Instrument Co., Ltd. Associates of the Company
Guangdong Shunkong Environmental Investment Co., Ltd. Associates of the Company
Guangdong Tianshu New Energy Technology Co., Ltd. Associates of the Company
Shenzheng Yingmei City Stewards Co., Ltd.( Associates of the Company
Associate of the Company’s subsidiary Greenlander
Lianjiang Greenlander New Energy Co., Ltd.
Environmental
Shantou Zoomlion Ruikang Environmental Sanitation Service
Associate of the Company’s subsidiary Zoomlion Environmental
Co., Ltd.
Shantou Chaoyang District Zoomlion Ruikang Environmental
Associate of the Company’s subsidiary Zoomlion Environmental
Sanitation Service Co., Ltd.
Changsha Cowa Zoomlion Intelligent Technology Co., Ltd. Associate of the Company’s subsidiary Zoomlion Environmental
Chongqing Sanfeng Urban Environmental Service Co., Ltd.
Associate of the Company’s subsidiary Zoomlion Environmental
[Note 1]
Yichun Development Investment Lianfeng Environmental
Associate of the Company’s subsidiary Zoomlion Environmental
Industry Co., Ltd. [Note 2]
Associate of the Company’s subsidiary Guangdong Infore
Guangdong Liangke Environmental Engineering Co., Ltd.
Environmental Investment Co., Ltd.
Guangdong Yingling Testing Technology Co., Ltd. Associate of the Company’s subsidiary Infore Technology
[Note 1] The Company’s Subsidiary Zoomlion Environmental disposed the 100% equity of Chongqing Sanfeng Urban
Environmental Service Co., Ltd. In July 2020. It is still disclosed as related party one year after its disposal. Transactions with it from
January to July 2021 were disclosed.
[Note 2] The Company’s Subsidiary Zoomlion Environmental disposed the 100% equity of Yichun Development Investment
Lianfeng Environmental Industry Co., Ltd. In October 2020. It is still disclosed as related party one year after its disposal. Disclosure
period of the related party transactions run from January to October 2021 were disclosed.
4. Other related parties of the Company
Names of other related parties Relationships with the Company
Shareholders holding more than 5% of the Company’s shares are
Ningbo Infore Asset Management Co., Ltd.
also under the control of the de facto controller
Zoomlion Heavy Industry Science and Technology Co., Ltd. Shareholder holding more than 5% of the Company’s shares
Hongchuang (Shenzhen) Investment Center (Limited
Shareholder holding more than 5% of the Company’s shares
Partnership)
Guangdong Infore Material Technology Co., Ltd. Controlled by the de facto controller
Foshan Shunde District Yinghai Investment Co., Ltd. Controlled by the de facto controller
LADURNER SRL [Note 1] Controlled by the de facto controller
Guangdong Yingfeng Maternal and Child Business Co., Ltd. Controlled by the de facto controller
Beijing Hualu Lanhuo Sports Industry Development Co., Ltd. Controlled by the de facto controller
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Midea Group Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Midea Electric Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Midea Environmental Electrical Manufacturing Co.,
Controlled by immediate families of the de facto controller
Ltd.
Guangdong Midea Refrigeration Equipment Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Midea Commercial Air Conditioning Equipment
Controlled by immediate families of the de facto controller
Co., Ltd.
Guangdong Midea HVAC Equipment Co., Ltd. Controlled by immediate families of the de facto controller
Foshan Shunde District Midea Washing Appliance
Controlled by immediate families of the de facto controller
Manufacturing Co., Ltd.
Wuhu Midea Life Electric Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Welling (Wuhu) Motor Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Wuhu Welling Motor Sales Co., Ltd. Controlled by immediate families of the de facto controller
Foshan Shunde District Midea Electric Heating Appliance
Controlled by immediate families of the de facto controller
Manufacturing Co., Ltd.
Anhui Meizhi Precision Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Anhui Meizhi Refrigeration Equipment Co., Ltd. Controlled by immediate families of the de facto controller
Foshan Weite Packing Co., Ltd. Controlled by immediate families of the de facto controller
Foshan Welling Washing Motor Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Midea Kitchen Appliance Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Meizhi Precision Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Meizhi Refrigeration Equipment Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Welling Motor Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Ande Zhilian Technology Co., Ltd. Controlled by immediate families of the de facto controller
Huaian Welling Motor Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Foshan Shunde District Midea Hotel Management Co., Ltd. Controlled by immediate families of the de facto controller
Wuhu Midea Kitchen Appliance Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Midea Group Wuhu Refrigeration Equipment Co.,
Controlled by immediate families of the de facto controller
Ltd.
Zhejiang Meizhi Compressor Co., Ltd. Controlled by immediate families of the de facto controller
Chongqing Midea Refrigeration Equipment Co., Ltd. Controlled by immediate families of the de facto controller
Jiangsu Midea Clean Electric Co., Ltd. Controlled by immediate families of the de facto controller
Foshan Midea Carrier Refrigeration Equipment Co., Ltd. Controlled by immediate families of the de facto controller
Hefei Midea Refrigerator Co., Ltd. Controlled by immediate families of the de facto controller
Wuxi Little Swan Co., Ltd. Controlled by immediate families of the de facto controller
Hefei Midea Washing Machine Co., Ltd. Controlled by immediate families of the de facto controller
Wuhu Ande Zhilian Technology Co., Ltd. Controlled by immediate families of the de facto controller
Wuxi Feiling Electronics Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Midea Kitchen Appliance Manufacturing Co., Ltd. Controlled by immediate families of the de facto controller
Guangdong Midea Property Management Co., Ltd. Controlled by immediate families of the de facto controller
Ningbo Midea Property Management Co., Ltd. Controlled by immediate families of the de facto controller
Yuxing Technology Development (Shenzhen) Co., Ltd. [Note 2] Former subsidiary of the Company
Controlling company of the Company’s associate Foshan
Guangdong Weiqi Electrical Materials Co., Ltd. [Note 3]
Yingtong Electrical Materials Co., Ltd.
Controlling company of the Company’s associate Foshan
Donggang Magnetic Wire Co., Ltd. [Note 3]
Yingtong Electrical Materials Co., Ltd.
Controlling company of the Company’s associate Foshan
Anhui Weiqi Electrical Materials Co., Ltd. [Note 3]
Yingtong Electrical Materials Co., Ltd.
Changsha Zhonglian Hengtong Machinery Co., Ltd. Associate of the Company’s shareholder Zoomlion Heavy
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Industry Co., Ltd.
Qianxi Jinjiang Sanitation Service Co., Ltd. Investee of the Company’s subsidiary Zoomlion Environmental
Jin Taotao Board secretary
[Note 1] Before June 2019, it was controlled by the same de facto controller, and it was still disclosed as a related party one year
after its disposal. Disclosure period of related party transactions run from January to June 2020.
[Note 2] The Company disposed 100% of the subsidiary Yuxing Technology Development (Shenzhen) Co., Ltd.’s shares in
September 2019, and it was still disclosed as a related party one year after its disposal. Disclosure period of related party transactions
run from January to August 2020 were disclosed.
[Note 3] The Company disposed 51% of the former subsidiaries Foshan Yingtong Electrical Materials Co., Ltd. (Anhui Weiqi
Electrical Materials Co., Ltd., Guangdong Weiqi Electrical Materials Co., Ltd., Donggang Magnetic Wire Co., Ltd.) in Fe bruary 2021.
Such companies converted from subsidiaries into associates after February 2021 and the transactions carried out between such
companies and the Company from March to December 2021 were disclosed as related party transactions.
5. Related party transactions
(1) Purchase and sale of goods, rendering and receiving of services
Table of purchase of goods and receiving of services
Unit: RMB
Contents of
Current period Approved transaction Over the approved Amount for the prior
Related parties related-party
actual limit limit or not period
transaction
Tengine Innovation
(Beijing)
Material 4,255,866.47 5,948,329.20
Monitoring
Instrument Co., Ltd.
Guangdong
Shunkong
Environmental Service 10,008,420.70 10,324,040.41
Investment Co.,
Ltd.
Changsha Cowa
Zoomlion
Intelligent Material 17,487,345.13 18,420,246.29
Technology Co.,
Ltd.
Guangdong Tianshu
New Energy
Material 4,008,257.44 2,040,930.62
Technology Co.,
Ltd.
Guangdong Liangke
Environmental
Service 825,471.70
Engineering Co.,
Ltd.
Zoomlion Material 165,728,113.90 212,902,937.86
Foshan Weite
Material 50,126.30
Packing Co., Ltd.
Guangdong Welling
Motor
Material 1,514.00
Manufacturing Co.,
Ltd.
Ande Zhilian Service 74,500.00 344,789.17
Technology Co.,
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Ltd.
Foshan Shunde
District Midea
Service 875,868.89 258,969.00
Hotel Management
Co., Ltd.
Yuxing Technology
Development
Goods and service 414,119,447.57
(Shenzhen) Co.,
Ltd.
Ningbo Midea
Property
Service 101,650.94
Management Co.,
Ltd.
Sub-total 203,365,495.17 664,411,330.42
Table of sale of goods and rendering of services
Unit: RMB
Contents of related-party
Related parties Current period actual Amount for the prior period
transaction
Guangdong Shunkong
Environmental Investment Co., Goods and service 8,436,283.18
Ltd.
Lianjiang Greenlander New
Goods and service 2,071,112.39 1,669,383.77
Energy Co., Ltd.
Guangdong Tianshu New
Goods 36,664,775.29 4,308,486.19
Energy Technology Co., Ltd.
Shantou Zoomlion Ruikang
Environmental Sanitation Goods 70,430.81 31,087.18
Service Co., Ltd.
Shantou Chaoyang District
Zoomlion Ruikang
Goods 3,516,958.41 17,093,774.87
Environmental Sanitation
Service Co., Ltd.
Chongqing Sanfeng Urban
Goods 3,499,292.04 3,717,248.06
Environmental Service Co., Ltd.
Changsha Cowa Zoomlion
Goods 49,417.06 132,075.47
Intelligent Technology Co., Ltd.
Guangdong Liangke
Environmental Engineering Co., Goods -9,569,059.05 9,651,047.83
Ltd.
Zoomlion Goods 4,446,362.79 1,001,779.94
Guangdong Infore Material
Goods 222,817.99 894,188.70
Technology Co., Ltd.
LADURNER SRL Goods 4,419,762.20
Guangdong Midea
Environmental Electrical Goods and service 18,308,649.75 68,920,672.88
Manufacturing Co., Ltd.
Welling (Wuhu) Motor
Goods 248,644.59
Manufacturing Co., Ltd.
Foshan Shunde District Midea
Electric Heating Appliance Goods and service 4,253,728.91 23,433,965.27
Manufacturing Co., Ltd.
Anhui Meizhi Precision
Goods 74,788,944.90 190,736,216.24
Manufacturing Co., Ltd.
Anhui Meizhi Refrigeration
Goods 8,273,640.64 37,768,536.63
Equipment Co., Ltd.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Foshan Welling Washing Motor
Goods 4,739,447.22 63,898,185.18
Manufacturing Co., Ltd.
Guangdong Midea Kitchen
Appliance Manufacturing Co., Goods 8,689,087.00 63,378,147.84
Ltd.
Guangdong Meizhi Precision
Goods 67,835,355.54 242,552,390.47
Manufacturing Co., Ltd.
Guangdong Meizhi
Refrigeration Equipment Co., Goods and service 64,391,718.91 254,151,014.66
Ltd.
Guangdong Welling Motor
Goods 143,985.09 1,079,224.79
Manufacturing Co., Ltd.
Huaian Welling Motor
Goods 118.88
Manufacturing Co., Ltd.
Jiangsu Midea Clean Electric
Goods 16,626,060.13
Co., Ltd.
Wuxi Little Swan Co., Ltd. Service 279,151.44
Yuxing Technology
Development (Shenzhen) Co., Goods 98,913,778.68
Ltd.
Wuxi Feiling Electronics Co.,
Goods 434,430.62 1,517,067.01
Ltd.
Qianxi Jinjiang Sanitation
Goods 19,276.10 940.20
Service Co., Ltd.
Yichun Development
Investment Lianfeng
Goods 48,038,229.26
Environmental Industry Co.,
Ltd.
Anhui Wellkey Electric
Factoring business 877,546.38
Material Co., Ltd.
Guangdong Wellkey Electric
Factoring business 1,824,062.44
Material Co., Ltd.
Donggang Magnet Wire
Factoring business 1,947,698.76
Company
Sub-total 345,537,909.25 1,114,859,232.28
(2) Related party entrusted management/contracting and entrusting management/contracted
□ Applicable √ Not Applicable
(3) Related-party leases
The Company as the lessee:
Unit: RMB
Lease expenses for the current Lease expenses for the prior
Names of lessors Type of asset leased
period period
Foshan Shunde District Yinghai
Office building and parking lot 1,211,475.03 1,258,927.15
Investment Co., Ltd.
(4) Related party guarantees
The Company and its subsidiaries as guarantors
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Unit: RMB
Whether the guarantee is
Guaranteed parties Guarantee amount Commencement date Maturity date
mature
Guangdong Wellkey
Electric Material Co., 20,000,000.00 March 04, 2021 March 03, 2022 No
Ltd. [Note 1]
Guangdong Wellkey
Electric Material Co., 20,000,000.00 March 11, 2021 March 10, 2022 No
Ltd. [Note 1]
Guangdong Wellkey
Electric Material Co., 30,000,000.00 March 17, 2021 March 16, 2022 No
Ltd. [Note 1]
Guangdong Wellkey
Electric Material Co., 30,000,000.00 April 20, 2021 April 19, 2022 No
Ltd. [Note 1]
Guangdong Wellkey
Electric Material Co., 20,000,000.00 May 25, 2021 May 24, 2022 No
Ltd. [Note 1]
Guangdong Wellkey
Electric Material Co., 20,000,000.00 July 13, 2021 July 12, 2022 No
Ltd. [Note 1]
Guangdong Wellkey
Electric Material Co., 20,000,000.00 June 25, 2021 April 18, 2022 No
Ltd.
Liaoning Donggang
Magnetic Wire Co., Ltd. 15,000,000.00 April 15, 2021 April 14, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 May 12, 2021 May 10, 2022 No
[Note 2]
Liaoning Donggang
10,000,000.00 May 19, 2021 May 18, 2022 No
Magnetic Wire Co., Ltd.
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 June 16, 2021 June 15, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 June 23, 2021 June 22, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 July 13, 2021 July 12, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 July 15, 2021 July 14, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 July 16, 2021 July 15, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 September 08, 2021 September 07, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 13,000,000.00 September 17, 2021 September 16, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 November 12, 2021 November 11, 2022 No
[Note 2]
Liaoning Donggang
10,000,000.00 November 17, 2021 November 16, 2022 No
Magnetic Wire Co., Ltd.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 November 26, 2021 November 25, 2022 No
[Note 2]
Liaoning Donggang
Magnetic Wire Co., Ltd. 10,000,000.00 December 13, 2021 December 12, 2022 No
[Note 2]
Anhui Wellkey Electric
30,000,000.00 May 25, 2021 May 25, 2022 No
Material Co., Ltd.
Anhui Wellkey Electric
20,000,000.00 June 29, 2021 June 29, 2022 No
Material Co., Ltd.
Anhui Wellkey Electric
30,000,000.00 June 23, 2021 June 23, 2022 No
Material Co., Ltd.
Lianjiang Greenlander
New Energy Co., Ltd. 46,493,357.93 October 25, 2020 October 24, 2035 No
[Note 3]
Note 1: These guaranteed loans were also provided with mortgaged guarantee by Guang Dong Wellkey Electric Material Co.,
Ltd. with its buildings and structures with cost of RMB 44,430,347.43 and net value of RMB 17,646,852.81, and its land use right
with cost of RMB 21,913,812.79 and net value of RMB 13,528,287.81.
Note 2: These guaranteed loans were also provided with mortgaged guarantee by Donggang Magnet Wire Company with its
buildings and structures with cost of RMB 30,603,925.53 and net value of RMB 10,221,675.85, and its land use right with cost of
RMB 9,747,692.63 and net value of RMB 6,943,354.96.
Note 3: These guaranteed loans were also provided with mortgaged guarantee by Lianjiang Greenlander New Energy Co., Ltd.
with its accounts receivable with net value of RMB 25,678,745.56, and also a guarantee provided by Guangdong Hengju Energy
Conservation and Environmental Protection Investment Co., Ltd.
(5) Loans between related parties
Unit: RMB
Related parties Amount Value Date Maturity Date Note
Borrowing
Lending
According to the Loan Agreement
signed between by its subsidiary
Greenlander Environment Oriental and
Lianjiang Greenlander New Energy
Co., Ltd., at the beginning of the
period, Greenlander Environmental has
already lent RMB 7,618,680.83 to
Lianjiang Greenlander New Energy
Co., Ltd., which shall pay capital
occupation fee of RMB 5,478,222.46
Lianjiang Greenlander at the beginning of the period. For the
618,680.83 January 06, 2019 January 05, 2023 current period, Greenlander
New Energy Co., Ltd.
Environmental should collect capital
occupation fee of RMB 568,327.72
from Lianjiang Greenlander New
Energy Co., Ltd. In the current period,
Greenlander Environmental received
repayment of principal of RMB
618,680.83. As of December 31, 2021,
outstanding principal due from
Lianjiang Greenlander New Energy
Co., Ltd. is RMB 7,000,000.00 and
capital occupation fee is RMB
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
6,046,550.18.
Lianjiang Greenlander
4,000,000.00 September 28, 2020 September 30, 2023 Ibid.
New Energy Co., Ltd.
Lianjiang Greenlander
3,000,000.00 December 14, 2020 September 30, 2023 Ibid.
New Energy Co., Ltd.
According to the Loan Agreement
signed between the Company and
Guangdong Liangke Environmental
Engineering Co., Ltd., at the beginning
of the period, the Company has already
lent RMB 30,000,000.00 to
Guangdong Liangke Environmental
Engineering Co., Ltd., which shall pay
capital occupation fee of RMB
165,333.33 at the beginning of the
period. In the current period, the
Company transferred its creditor's
rights against Guangdong Liangke
Guangdong Liangke Environmental Engineering Co., Ltd.
Environmental 21,000,000.00 April 30, 2019 December 31, 2021 (gross carrying amount of RMB
Engineering Co., Ltd. 30,165,333.33, bad debt provision of
RMB 12,164,432.14 and carrying
amount of RMB 18,000,901.19) to
Foshan Shunde Yingtong
Environmental Protection Engineering
Service Co., Ltd. at the price of RMB
27,000,000.00. As of December 31,
2021, the Company has received RMB
18,000,000.00 of the transfer
consideration. The Company has
received the remaining RMB
9,000,000.00 in February 2022.
Therefore, the principal and interest of
above loan have been settled.
Guangdong Liangke
Environmental 9,000,000.00 April 30, 2019 December 31, 2021 Ibid.
Engineering Co., Ltd.
According to the Loan Agreement
signed between Ningbo Infore Finance
Lease Co., Ltd. and Shantou Zoomlion
Ruikang Environmental Sanitation
Service Co., Ltd., at the beginning of
the period, Ningbo Infore Finance
Lease Co., Ltd. has already lent RMB
22,000,370.00 to Shantou Zoomlion
Ruikang Environmental Sanitation
Service Co., Ltd. In the current period,
Ningbo Infore Finance Lease Co., Ltd.
shall collect capital occupation fee of
Shantou Zoomlion RMB 726,429.04, while actually
Ruikang Environmental received payment of principal of RMB
22,000,370.00 December 30, 2019 December 31, 2021
Sanitation Service Co., 3,016,429.04. In June 2021, Ningbo
Ltd. Infore Finance Lease Co., Ltd.
transferred its creditor's rights against
Shantou Zoomlion Ruikang
Environmental Sanitation Service Co.,
Ltd. (gross carrying amount of RMB
19,710,370.00, bad debt provision of
RMB 590,370.00 and carrying amount
of RMB 19,120,000.00) to Henan Saisi
Machinery Equipment Co., Ltd.at the
price of RMB 19,120,000.00. As of
December 31, 2021, Ningbo Infore
Finance Lease Co., Ltd. has received
the transfer consideration. Therefore,
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
the principal and interest of above loan
have been settled.
According to the Loan Agreement
signed between Zoomlion
Environmental and Shantou Zoomlion
Environmental Sanitation Service Co.,
Ltd., Zoomlion Environmental
Industry Co., Ltd. already lent RMB
1,200,000.00 to Shantou Zoomlion
Ruikang Environmental Sanitation
Service Co., Ltd., which shall pay
capital occupation fee of RMB
59,779.78 at the beginning of the
period, the capital occupation fee due
for the current period is RMB
Shantou Zoomlion
19,599.99. In the current period,
Ruikang Environmental
1,200,000.00 September 04, 2018 December 31, 2021 Zoomlion Environmental transferred
Sanitation Service Co.,
its creditor's rights against Shantou
Ltd.
Zoomlion Ruikang Environmental
Sanitation Service Co., Ltd. (gross
carrying amount of RMB
1,279,379.97, bad debt provision of
RMB 363,379.97 and carrying amount
of RMB 916,000.00) to Henan Saisi
Machinery Equipment Co., Ltd.at the
price of RMB 916,000.00. As of
December 31, 2021, Zoomlion
Environmental Company has received
the transfer consideration. Therefore,
the principal and interest of above loan
have been settled.
Sub-total 60,819,050.83
(6) Asset transfer and debt restructuring with related parties
□ Applicable √ Not Applicable
(7) Key management’s remuneration
Unit: RMB
Item Current period actual Amount for the prior period
Key management’s remuneration 9,318,141.11 11,767,886.08
(8) Other related transactions
1. Related financial services
As of December 31, 2020, the amount of bank deposits balance held by Zoomlion Environmental in the Zoomlion Finance Co.,
Ltd. is RMB 0.00 (recorded under cash and bank balances). The non-bank financial institutions of Zoomlion provided commercial
factoring financial services to Zoomlion Environmental, which recognized factoring service and handling fee of RMB 1,109,956.74
in the current period; non-bank financial institutions of Zoomlion Heavy Industry Co., Ltd. carried out sales and leaseback business
with customers, and realized sales income of RMB 20,387,256.64 (excluding tax).
2. Special agreement on continued implementation of sales contract signed in the name of Zoomlion Heavy Industry Science
and Technology Co., Ltd.
Since June 1, 2017, the sanitation business of Zoomlion was merged into Zoomlion Environmental. In order to continue the
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
implementation of the sales contract originally signed in the name of Zoomlion, Zoomlion Environmental issued invoice to Zoom lion,
which will then issue the same amount invoice to end customers. The tax-excluded amount of income on such transactions in 2021 is
RMB 2,907,933.36. Zoomlion Environmental related such transactions directly to end customers.
3. Temporary lending to/ borrowing from related parties
From January to December 2021, Infore Group provided temporary loans to the Company and its subsidiaries, totaling to RMB
1,180,000,000. As the tenor of the loans usually do exceed one work day, no interest is settled for such loans.
6. Balance due to or from related parties
(1) Balance due from related parties
Unit: RMB
Closing balance Opening balance
Item Related parties
Book balance Bad debt provision Book balance Bad debt provision
Guangdong
Shunkong
Accounts receivable 4,202,907.51 420,290.75 14,326,635.42 956,013.54
Environmental
Investment Co., Ltd.
Guangdong Tianshu
New Energy 46,417,357.14 1,431,117.86 9,839,076.38 294,006.22
Technology Co., Ltd.
Lianjiang
Greenlander New 378,000.00 18,900.00 86,391.50 23,172.40
Energy Co., Ltd.
Shantou Zoomlion
Ruikang
Environmental 7,095.00 354.75 1,804.00 90.20
Sanitation Service
Co., Ltd.
Chongqing Sanfeng
Urban
3,309,480.00 165,474.00
Environmental
Service Co., Ltd.
Guangdong Liangke
Environmental
9,830,000.00 491,500.00
Engineering Co.,
Ltd.
Zoomlion 365,661.93 36,566.19 365,661.93 18,283.10
Guangdong Infore
Material Technology 181,291.59
Co., Ltd.
Guangdong Midea
54,018.62 54,018.62 54,018.62 54,018.62
Electric Co., Ltd.
Guangdong Midea
Environmental
Electrical 17,001,270.68
Manufacturing Co.,
Ltd.
Guangdong Midea
Refrigeration 42,819.11 42,819.11 42,819.11 42,819.11
Equipment Co., Ltd.
Guangdong Midea
Commercial Air 33,413.42 33,413.42 33,413.42 33,413.42
Conditioning
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Equipment Co., Ltd.
Guangdong Midea
HVAC Equipment 42,241.88 42,241.88 42,241.88 42,241.88
Co., Ltd.
Foshan Shunde
District Midea
Electric Heating
12,253,229.14
Appliance
Manufacturing Co.,
Ltd.
Anhui Meizhi
Precision
48,419,022.58
Manufacturing Co.,
Ltd.
Anhui Meizhi
Refrigeration 11,682,642.93
Equipment Co., Ltd.
Foshan Welling
Washing Motor
15,452,106.60
Manufacturing Co.,
Ltd.
Guangdong Midea
Kitchen Appliance
31,207,585.83
Manufacturing Co.,
Ltd.
Guangdong Meizhi
Precision
44,672,031.52
Manufacturing Co.,
Ltd.
Guangdong Meizhi
Refrigeration 50,376,967.95
Equipment Co., Ltd.
Guangdong Welling
Motor
166,891.19
Manufacturing Co.,
Ltd.
Jiangsu Midea Clean
6,206,937.40
Electric Co., Ltd.
Changsha Zhonglian
Hengtong Machinery 850,000.00 85,000.00 850,000.00 42,500.00
Co., Ltd.
Wuxi Feiling
504,880.89
Electronics Co., Ltd.
Guangdong Wellkey
Electric Material 73,000,000.00 1,136,107.50
Co., Ltd.
Shantou Chaoyang
District Zoomlion
Ruikang
4,502,500.00 225,125.00
Environmental
Sanitation Service
Co., Ltd.
Changsha Cowa
Zoomlion Intelligent 55,841.28 2,792.06
Technology Co., Ltd.
Anhui Wellkey
Electric Material 34,300,000.00 530,355.75
Co., Ltd.
Donggang Magnet 31,000,000.00 485,227.50
246
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Wire Company
Sub-total 195,251,855.89 4,544,330.39 276,906,400.56 2,163,532.49
Notes receivable Zoomlion 300,000.00
Guangdong Midea
Kitchen Appliance
749,469.98
Manufacturing Co.,
Ltd.
Wuhu Welling Motor
111,985.59
Sales Co., Ltd.
Sub-total 1,161,455.57
Receivable financing Zoomlion 1,586,000.00
Guangdong Midea
Environmental
Electrical 100,000.00
Manufacturing Co.,
Ltd.
Guangdong Midea
Environmental
Electrical 5,485,875.67
Manufacturing Co.,
Ltd.
Guangdong Midea
HVAC Equipment 470,538.86
Co., Ltd.
Foshan Shunde
District Midea
Washing Appliance 1,476,232.74
Manufacturing Co.,
Ltd.
Wuhu Midea Life
Electric
885,759.28
Manufacturing Co.,
Ltd.
Wuhu Welling Motor
284,225.20
Sales Co., Ltd.
Foshan Shunde
District Midea
Electric Heating
1,818,137.80
Appliance
Manufacturing Co.,
Ltd.
Guangdong Midea
Kitchen Appliance
13,342,437.82
Manufacturing Co.,
Ltd.
Guangdong Meizhi
Refrigeration 3,744,419.06
Equipment Co., Ltd.
Wuhu Midea
Kitchen Appliance
189,549.75
Manufacturing Co.,
Ltd.
Guangdong Midea
Group Wuhu
350,000.00
Refrigeration
Equipment Co., Ltd.
Zhejiang Meizhi
Compressor Co., 1,012,405.60
Ltd.
247
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Chongqing Midea
Refrigeration 2,980,000.00
Equipment Co., Ltd.
Jiangsu Midea Clean
435,471.31
Electric Co., Ltd.
Foshan Midea
Carrier Refrigeration 146,934.55
Equipment Co., Ltd.
Hefei Midea
Refrigerator Co., 17,315,354.30
Ltd.
Hefei Midea
Washing Machine 4,555,382.40
Co., Ltd.
Sub-total 56,178,724.34
Changsha Cowa
Prepayments Zoomlion Intelligent 18,333.33
Technology Co., Ltd.
Zoomlion 3,954,000.00
Guangdong Tianshu
New Energy 32,200.00
Technology Co., Ltd.
Shenzheng Yingmei
City Stewards Co., 3,710.00
Ltd.
Sub-total 54,243.33 3,954,000.00
Guangdong
Shunkong
Other receivables 1,730,000.00 865,000.00 1,730,000.00 519,000.00
Environmental
Investment Co., Ltd.
Lianjiang
Greenlander New 12,245,069.06 1,562,903.45 13,048,263.59 1,633,347.22
Energy Co., Ltd.
Shantou Zoomlion
Ruikang
Environmental 1,259,779.98 332,233.34
Sanitation Service
Co., Ltd.
Guangdong Liangke
Environmental
30,165,333.33 6,395,734.82
Engineering Co.,
Ltd.
Zoomlion 1,160,821.56 58,041.08 60,964.27 3,048.21
Foshan Shunde
District Yinghai 205,228.40 61,568.52 205,228.40 4,104.57
Investment Co., Ltd.
Jin Taotao (note) 1,000,000.00 20,000.00
Sub-total 16,341,119.02 2,567,513.05 46,469,569.57 8,887,468.16
Long-term account
Guangdong Tianshu
receivable and non-
New Energy 8,666,666.67 137,425.00 11,736,792.59 176,051.89
current assets due
Technology Co., Ltd.
within one year
Shantou Zoomlion
Ruikang
Environmental 3,376,732.97 378,762.50 25,456,370.00 865,973.60
Sanitation Service
Co., Ltd.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Shantou Chaoyang
District Zoomlion
Ruikang
16,598,713.91 1,656,232.00 22,377,360.00 1,491,761.00
Environmental
Sanitation Service
Co., Ltd.
Sub-total 28,642,113.55 2,172,419.50 59,570,522.59 2,533,786.49
(Note) The individual petty cash of Jin Taotao has been returned and written off on March 29, 2022.
(2) Balance due to related parties
Unit: RMB
Item Related parties Closing balance Opening balance
Tengine Innovation (Beijing)
Accounts payable 750,887.68 1,701,531.98
Monitoring Instrument Co., Ltd.
Guangdong Shunkong
Environmental Investment Co., 310,000.00 937,079.65
Ltd.
Guangdong Tianshu New
2,239,549.66 867,574.51
Energy Technology Co., Ltd.
Changsha Cowa Zoomlion
367,363.53 162,901.47
Intelligent Technology Co., Ltd.
Guangdong Liangke
Environmental Engineering 825,471.70 2,776,000.50
Co., Ltd.
Zoomlion 88,865,189.93 117,954,922.58
Midea Group Co., Ltd. 587,507.93 587,507.93
Foshan Weite Packing Co., Ltd. 44,581.00
Foshan Welling Washing Motor
9,160.00
Manufacturing Co., Ltd.
Foshan Shunde District Midea
105,413.51
Hotel Management Co., Ltd.
Changsha Zhonglian Hengtong
602,880.40
Machinery Co., Ltd.
Wuhu Ande Zhilian Technology
26,257.78
Co., Ltd.
Sub-total 94,051,383.94 125,670,397.80
Tengine Innovation (Beijing)
Notes payable 668,890.00 3,977,532.00
Monitoring Instrument Co., Ltd.
Guangdong Tianshu New
2,644,400.00 2,096,770.00
Energy Technology Co., Ltd.
Changsha Cowa Zoomlion
5,184,750.00 1,712,500.00
Intelligent Technology Co., Ltd.
Zoomlion 75,448,044.94 131,784,307.87
Sub-total 83,946,084.94 139,571,109.87
Lianjiang Greenlander New
Contract liabilities 956,067.99
Energy Co., Ltd.
Guangdong Liangke
Environmental Engineering 987,079.70 15,610.67
Co., Ltd.
Zoomlion 6,081,760.12 3,857,629.05
Sub-total 7,068,839.82 4,829,307.71
Other payables Zoomlion 104,612.82 49,328,337.00
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Greenlander Investment
21,875,000.00 21,875,000.00
Holdings Co., Ltd.
Guangdong Midea Property
5,000.00 5,000.00
Management Co., Ltd.
Changsha Zhonglian Hengtong
7,500.00
Machinery Co., Ltd.
Guangdong Tianshu New
2,700.00
Energy Technology Co., Ltd.
Changsha Cowa Zoomlion
100,000.00
Intelligent Technology Co., Ltd.
Sub-total 22,087,312.82 71,215,837.00
7. Related party commitments
□ Applicable √ Not Applicable
XIII. Share-based payme nt
1. Overall information
√ Applicable □ Not Applicable
Unit: RMB
Total equity instruments granted in current period 0.00
Total equity instruments vested in current period 12,665,589.00
Total equity instruments retired in current period 3,888,800.00
Phase II stock options: the exercise price is RMB
9.03 per share; after 12 months from the date of grant, if
the exercise conditions are met, the incentive subjects
can exercise by three installments respectively at 30%,
30%, 40% within the next 36 months; as of the report
date, the first period of phase II has due and expired, the
second period of phase II exercised 18,200 shares, and
the third period of phase II is in the exercise period.
The range of exercise prices of stock options outstanding at the end of the
Phase III stock options: the exercise price is RMB 6.22
period and the remaining contractual lifetime
per share; after 12 months from the date of grant, if the
exercise conditions are met, the incentive targets can
exercise by three installments respectively at 30%,
30%, 40% within the next 36 months; as of the report
date, the first period of phase III has expired due to
failure in meeting the performance indicators, the
second period of phase II is in the exercise period, and
the third period of phase III is still in the waiting period.
The range of exercise prices of other equity instruments at the end of the
0
period and the remaining contractual life
Other statements
(1) The decision-making procedures and approval status of the Company’s phase III stock option incentive plan
According to the Proposal on the Phase III Stock Option Incentive Plan (Draft) and Its Summary approved by the Company’s
third extraordinary shareholder’s general meeting on November 12, 2019, and the Proposal on Adjusting the List of Incentive
Subjects and the Number of Granted Stock Options for Phase III Stock Options deliberated and approved by 32nd meeting of the
eighth session of the Board of Directors on November 26, 2019, the Company intends to implement stock option incentive plans for
some of the Company’s middle and senior managers and core backbones (technology, marketing, production, etc.). The total number
of stock options granted to incentive subjects is 65.09 million, accounting for approximately 2.06% of the Company’s total share
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
capital of 3,163.0621 million shares when the incentive plan is signed. If each stock option meets the exercise conditions after 12
months from the grant date, the incentive subjects may exercise the option by three installments at 30%, 30%, and 40% at the
exercise price of RMB 6.45 per share within the next 36 months.
On April 23, 2020, according to the Proposal on Adjusting the Incentive Subjects and the Number of Options Exercised in
Phase II and Phase III Stock Option Incentive Plans deliberated and approved by the 4th meeting of the ninth session of the Board of
Directors and the 3rd meeting of the ninth session of the Board of Supervisors, 5 employees who resigned due to personal reas ons
were identified by the Company’s Board of Directors as no longer suitable for incentives. According to the provisions of the Phase
III Stock Option Incentive Plan (Draft), their first, second, and third installments of stock options, a total of 1.28 millio n, were
canceled. After the adjustments, the incentive subjects of phase III stock option incentive plan have been adjusted from the original
249 to 244, and the number of locked stock options granted has been adjusted from 65.09 million to 63.81 million.
Meanwhile, the Proposal on the Company’s Phase III Stock Option Incentive Plan’s Failure to Meet the Exercising Conditions
for the First Exercise Period and Cancellation of Part of the Stock Options was deliberated and approved, given that the Company’s
performance did not reach the vesting conditions of the first period of the Phase III Stock Option Incentive Plan. The 19.143 million
stock options granted but not yet exercised in the first period cannot be exercised. According to the relevant provisions of the "Phase
III Stock Option Incentive Plan (Draft)", the Company’s Board of Directors agreed to cancel the 19.143 million stock options granted
but not yet exercised in the first period.
The Company has disclosed the Announcement on the Implementation of the Annual Equity Distribution of 2019 on July 4,
2020, based on the Company’s current total share capital after excluding the repurchased shares (0 share), i.e. 3,163,062,146 shares,
cash dividend of RMB 1.10 (tax included) for every 10 shares is to be distributed to all shareholders. The equity registration date for
this equity distribution is July 9, 2020, and the ex-rights and ex-dividend date is July 10, 2020. Given that the Company’s 2019
equity distribution has been implemented on July 10, 2020, according to provisions on the adjustment of the exercise price of the
Phase II and Phase III stock option incentive plan drafts, if the Company has capital reserve transferred to share capital, distribution
of share bonus, or share split, share reduction, dividend distribution, and share allotments, the exercise price of stock options will be
adjusted accordingly. After the implementation of this equity distribution, the exercise price of Phase III stock option ince ntive plan
will be adjusted from RMB 6.45 per share to RMB 6.34 per share.
According to the Proposal on Revising the Performance Appraisal Indicators of Phase III Stock Option Incentive Plan
deliberated and approved by the 6th meeting of the ninth session of the Board of Directors on August 20, 2020, it is agreed t o revise
the performance appraisal indicators of phase III stock option incentive plan.
On April 22, 2021, according to the Proposal on Adjusting the Incentive Subjects and the Number of Options Exercised and
Cancellation of Portion of the Options in Phase II and Phase III Stock Option Incentive Plans deliberated a nd approved by the 13th
meeting of the ninth session of the Board of Directors and the 12th meeting of the ninth session of the Board of Supervisors, 13
employees who resigned and no longer take posts in the Company and its subsidiaries due to personal rea sons were identified by the
Company’s Board of Directors as no longer suitable for incentives. According to the provisions of the Phase III Stock Option
Incentive Plan (Revised Draft), their first, second, and third installments of stock options, a total of 3,101,000 shares, were canceled.
The incentive subjects of phase III stock option incentive plan have been adjusted from the original 244 to 231, and the number of
locked stock options granted has been adjusted from 44,667,000 shares to 41,566,000 shares.
Meanwhile, the Proposal on Matters Related to the Second Exercise Period of Phase III Incentive Plan was deliberated and
approved, in view of the fact that conditions of the second exercise period of Phase III stock option incentive plan have bee n fulfilled,
the Company’s Phase III stock option incentive plan has determined and passed the assessment for a total of 231 incentive sub jects,
and 17,814,000 options were exercised during the second exercise period.
On May 14, 2021, according to the Proposal on 2020 Profit Distribution deliberated and approved by the 2020 Annual General
Meeting of the Company, based on the 3,104,109,771 shares, i.e. the Company’s current total share capital (3,163,086,005 shar es)
minus the repurchased shares (58,976,234 shares), cash dividend of RMB 1.20 (tax included) for every 10 shares is to be distributed
to all shareholders, with no bonus issue from either profit or capital reserves. The equity registration date for this equity distribution
251
2021 Annual Report of Infore Environment Technology Group Co., Ltd.
is July 7, 2021, and the ex-rights and ex-dividend date is July 8, 2021.
On August 19, 2021, the Proposal on Adjusting the Exercise Price of Phase II & III Stock Options was deliberated and approved
by 14th meeting of the ninth session of the Board of Directors of the Company. In view of the fact that the Company's 2020 annual
equity distribution has been completed on July 8, 2021, according to provisions on the adjustment of the exercise price of the phase II
and Phase III stock option incentive plan drafts, if the Company has capital reserve transferred to share capital, distribution of share
bonus, or share split, share reduction, dividend distribution, and share allotments within the effective period of the options, the
exercise price of stock options will be adjusted accordingly. After the implementation of this equity distribution, the exercise price of
phase III stock option incentive plan will be adjusted from RMB 6.34 per share to RMB 6.22 per share.
(2) The decision-making procedures and approval status of the Company’s phase II stock option incentive plan
According to the Proposal on Granting Stock Options to Phase II Stock Option Incentive Subjects deliberated and approved by
the 14th extraordinary meeting of the eighth session of the Board of Directors of the Company on March 12, 2018, the Company
intends to implement stock option incentive plan for some middle and senior managers, core backbones of the Company and key
management and core backbones of its holding subsidiaries in the environmental protection industry, and the total number of stock
options granted to the incentive subjects was 27.15 million, accounting for 2.35% of the Company’s total share capital of 1,1 66.9889
million shares at the time the incentive plan was signed. If each stock option meets the exercise conditions after 12 months from the
grant date, the incentive subjects may exercise the option by three installments at 30%, 30%, and 40% at the exercise price of RMB
9.36 per share within the next 36 months.
According to the Proposal on Adjusting the Equity Incentive Plan Exercise Price, Incentive Subjects and Number of Option
deliberated and approved by the 30th meeting of the eighth session of the Board of Directors on August 27, 2019, due to the
implementation of the 2018 equity distribution plan, as well as the resignation, position adjustment of some incentive subjec ts, and
other relevant reasons, it is agreed to adjust the equity incentive subjects, the number of options, and the exercise price. After
adjustment, the incentive subjects were adjusted from 118 to 81, and the number of locked stock options granted was adjusted from
27.15 million to 18.25 million shares, and the exercise price was adjusted from RMB 9.36 per share to RMB 9.26 per share.
According to the Proposal on Matters Related to the First Exercise Period of Phase II Incentive Plan deliberated and approved by the
30th meeting of the eighth session of the Board of Directors on August 27, 2019, given that the conditions for the first exercise
period of the Company’s phase II stock option incentive plan have been fulfilled, the Phase II equity incentive plan has dete rmined
and passed the assessment for a total of 81 incentive subjects, and a total of 5,475,000 shares were exercised in the first exercise
period.
As of the end of the first exercise period (i.e. March 11, 2020), there are still 5,475,000 stock options that have not been
exercised. According to the provisions of the Phase II stock option incentive plan, "the incentive subjects must exercise their options
within the validity period of the stock options. After the expiration date, the stock options that have been granted but not yet
exercised shall not be exercised and shall be canceled by the Company.", the Company canceled 5,475,000 outstanding stock options
granted and due in the first exercise period of the Phase II stock option incentive plan for the 81 incentive subjects mentioned above.
After the completion of the cancellation, the Company’s Phase II stock option incentive plan will continue to be implemented in
accordance with the requirements. The number of the Phase II stock options was adjusted from 18.25 million to 12.775 million.
The Company has disclosed the Announcement on the Implementation of the Annual Equity Distribution of 2019 on July 4,
2020, based on the Company’s current total share capital after excluding the repurchased shares (0 share), i.e. 3,163,062,146 shares,
cash dividend of RMB 1.10 (tax included) for every 10 shares is to be distributed to all shareholders. The equity registration date for
this equity distribution is July 9, 2020, and the ex-rights and ex-dividend date is July 10, 2020. Given that the Company’s 2019
equity distribution has been implemented on July 10, 2020, according to provisions on the adjustment of the exercise price of the
Phase II and Phase III stock option incentive plan drafts, if the Company has capital reserve transferred to share capital, d istribution
of share bonus, or share split, share reduction, dividend distribution, and share allotments, the exercise price of stock options will be
adjusted accordingly. After the implementation of this equity distribution, the exercise price of Phase II stock option incentive plan
will be adjusted from RMB 9.26 per share to RMB 9.15 per share.
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The Proposal on Cancellation of the Portion of Options Due but Unexercised in Phase II Stock Option Incentive Plan was
deliberated and approved by the 13th meeting of the ninth session of the Board of Directors on April 22, 2021. As 46 incentive
subjects s have partially exercised options totaling to 18,200 shares upon as of the maturity date of the second exercise period of
phase II stock option incentive plan, with remaining 3,476,800 shares unexercised upon the maturity, acc ording to the provisions of
the Phase II stock option incentive plan, the Board of Directors of the Company approved the cancellation of the 3,476,800 shares of
outstanding options granted and due in the second exercise period.
On April 22, 2021, according to the Proposal on Adjusting the Incentive Subjects and the Number of Options Exercised and
Cancellation of Portion of the Options in Phase II and Phase III Stock Option Incentive Plans deliberated and approved by the 13th
meeting of the ninth session of the Board of Directors, 6 employees who resigned due to personal reasons and was appointed as the
supervisor due to position changes were identified by the Company’s Board of Directors as no longer suitable for incentives.
According to the provisions of the Phase II Stock Option Incentive Plan (Draft), their third installment of stock options, a total of
560,000 shares, were canceled. The incentive subjects of Phase III stock option incentive plan have been adjusted from the or iginal
46 to 40, and the number of locked stock options granted has been adjusted from 4.66 million shares to 4.1 million shares.
The Proposal on Matters Related to the Third Exercise Period of Phase II Incentive Plan was deliberated and approved by the
13th meeting of the ninth session of Board of Directors of the Company, given that the Company’s performance has reached the
vesting conditions of the third exercise period of the Phase II Stock Option Incentive Plan, the Phase II equity incentive plan has
determined and passed the assessment for a total of 40 incentive subjects, and a total of 4.1 million shares were exercised in the third
exercise period. The Phase II Stock Option Incentive Plan has no granted locked share options.
The Company has disclosed the Announcement on the Implementation of the Annual Equity Distribution of 2020. Based on the
3,104,109,771 shares, i.e. the Company’s current total share capital (3,163,086,005 shares) minus the repurchased shares (58, 976,234
shares), cash dividend of RMB 1.20 (tax included) for every 10 shares is to be distributed to all shareholders. The equity registration
date for this equity distribution is July 7, 2021, and the ex-rights and ex-dividend date is July 8, 2021.
On August 19, 2021, the Proposal on Adjusting the Exercise Price of P hase II & III Stock Options was deliberated and approved
by 14th meeting of the ninth session of the Board of Directors of the Company. In view of the fact that the Company's 2020 an nual
equity distribution has been completed on July 8, 2021, according to provisions on the adjustment of the exercise price of the Phase II
stock option incentive plan draft, if the Company has capital reserve transferred to share capital, distribution of share bon us, or share
split, share reduction, dividend distribution, and share allotments within the effective period of the options, the exercise price of stock
options will be adjusted accordingly. After the implementation of this equity distribution, the exercise price of phase II stock option
incentive plan will be adjusted from RMB 9.15 per share to RMB 9.03 per share.
2. Equity-settled share-based payment
√ Applicable □ Not Applicable
Unit: RMB
Stock options: Fair value of the stock options at the grant date
Determination method for grant-date fair value of equity
was determined according to the Black-Scholes option pricing
instruments
model
Determination method for the number of equity instruments It is expected that all incentive subjects still with the Company
expected to vest by then will fully exercise their rights
Reasons for significant difference between the estimates in the
NA
current period and the prior period
Capital reserve accumulated due to equity-settled share-based 59,832,024.65
payment
Total expenses incurred due to equity-settled share-based payment 10,737,181.92
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
3. Cash-settled share-based payment
□ Applicable √ Not Applicable
4. Modification, termination of share-based payment
□ Applicable √ Not Applicable
XIV. Undertakings and Contingencies
1. Significant undertakings
As of December 31, 2021, the Company has no significant undertakings to be disclosed.
2. Contingencies
(1) Significant contingencies as of balance sheet date
1. Contingent liabilities incurred by pending lawsuit/arbitration and the financial effect
On November 19, 2018, Greenlander Investment Holdings Co., Ltd., the former shareholder of the Company’s 70% -controlled
subsidiary Greenlander Environmental, filed a civil complaint with the People’s Court of Shenzhen Qianhai Cooperation Zone,
requesting the Company and its sub-subsidiary Shenzhen Green Ark Investment Co., Ltd. to pay RMB 21,875,000 and interest
thereof for the 25% equity acquisition of Lianjiang Greenlander New Energy Co., Ltd. in 2016, and therefore applied for freez ing the
25% equity of Lianjiang Greenlander New Energy Co., Ltd. According to the Civil Judgment [2018] Yue 0391 Min Chu No. 4117
issued by the People’s Court of Qianhai Cooperation Zone, Shenzhen, Guangdong Province on June 18, 2019: the subsidiary
Shenzhen Green Ark Investment Co., Ltd. shall pay RMB 21,875,000 and interest thereof for the 25% equity acquisition of Lianjiang
Greenlander New Energy Co., Ltd. in 2016 to Greenlander Investment Holdings Co., Ltd. On July 12, 2019, Shenzhen Green Ark
Investment Co., Ltd. filed a civil appeal petition to Shenzhen Intermediate People’s Court, requesting to revoke the Civil Judgment
[2018] Yue 0391 Min Chu No. 4117 in accordance with the law, and to dismiss all the claims made by the appealing applicant.
On May 20, 2021, Shenzhen Intermediate People’s Court issued the Final Judgment [2019] Yue 03 Min Zhong No.24451. The
Court believed that the Company has related party relationship with Shenzhen Green Ark Investment Co., Ltd. but both of them are
independent legal persons, therefore the court didn't support the defense of Shenzhen Green Ark Investment Co., Ltd. against
Greenlander Investment Holdings Co., Ltd. on the basis of Cooperation Framework Agreement; Meanwhile, the Greenlander
Environmental and Shenzhen Green Ark Investment Co., Ltd. are also independent legal persons, the Court didn't support the claim
of Shenzhen Green Ark Investment Co., Ltd. to dismiss all the claims on the grounds that Greenlander Environmental has creditor's
right to Greenlander Investment Holdings Co., Ltd. The verdict of the first trial was upheld by the Civil Judgment [2019] Yue 03 Min
Zhong No.24451. On January 8, 2021, Shenzhen Yongshenge Electric Apparatus Co., Ltd. claimed that it has been assigned the
creditor's right determined by the Civil Judgment (2019) Yue 03 Min Zhong No.24451, and applied to People’s Court of Shenzhen
Qianhai Cooperation Zone for legal enforcement. Later, Shenzhen Green Ark Investment Co., Ltd. raised an objection to execution,
which has been accepted and filed as (2021) Yue 0391 Zhi Yi No.240 by the Court.
As of December 31, 2021, the Company has made provision of other payables to Greenlander Investment Holdings Co., Ltd.
amounting to RMB 21,875,000.00.
2. Contingent liabilities arising from provision of guarantee for the debt of other companies and the financial effect
(1) Details of guarantees for related parties are set out in Note XII to the financial statements.
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(2) Guarantees provided by the Company and its subsidiaries for non-related parties
1) Certain customers of the Company use the liquidity funds provided by banks to finance their purchase. According to the
agreement, the Company provides guarantee for such transactions and the de facto controller of the borrower also provides joint and
several liable guarantee for the full amount. As of December 31, 2021, the Company’s maximum exposure to these guarantees is
RMB 90,436,112.62.
2) Certain customers of the Company use finance lease services provided by third-party finance lease companies to finance their
purchase from the Company. According to the arrangement of the agreement, the Company provides guarantees for third-party
finance lease companies. If customers default, the Company will be required to compensate the third-party finance lease companies
for the lease payment owed by customers. Meanwhile, the Company has the right to take back and sell the machinery that is the
subject of the lease, and keep any sales income exceeding the balance of the guarantee payment to the leasing company. As of
December 31, 2021, the Company’s maximum exposure to these guarantees is RMB 445,086,544.10.
(2) Description is also required if the Company has no significant contingencies to disclose
The Company has no significant contingencies to disclose.
3. Others
XV. Events after the balance sheet date
1. Significant non-adjusting events
The Company has no significant non-adjusting events after the balance sheet date
2. Profit distribution
Unit: RMB
Proposed distribution of profit or dividends 317,949,975.40
Declared distribution of profit or dividend that has been deliberated
317,949,975.40
and approved
3. Layout of sales channels
4. Description of other events after the balance sheet date
XVI. Other significant events
1. Discontinued operations
Unit: RMB
Net profit from
Income tax discontinued
Item Income Expenses Total profit Net profit operations
expenses
attributable to the
owners of the
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parent company
Foshan Yingtong
Electrical
544,456,149.94 24,289,477.62 4,103,243.21 -4,848,372.03 8,951,615.24 7,027,697.51
Materials Co.,
Ltd.
Other statements
2. Segment information
(1) Identification basis and accounting policies for reporting segments
Operating segments are determined based on the structure of the Company’s internal organization, management requirements
and internal reporting system. The Company identifies reporting segments based on products and evaluates the operating
performance of electromechanical equipment manufacturing, ventilation equipment manufacturing and environmental integrated
industry respectively. The assets and liabilities shared by the segments are allocated among the segments in proportion to their sizes.
(2) Financial information of reporting segments
Unit: RMB
Ventilation
equipment and
Environmental Inter-segment
Item electromechanical Financial services Total
integrated industry offsetting
equipment
manufacturing
Revenue 1,548,016,765.49 10,509,379,618.68 38,247,557.74 282,106,497.43 11,813,537,444.48
Operating cost 1,223,413,744.03 8,268,455,748.28 28,763,386.77 310,314,452.71 9,210,318,426.37
Total assets 23,445,395,915.95 20,284,537,181.80 1,205,586,758.43 16,603,510,228.05 28,332,009,628.13
Total liabilities 3,780,155,297.84 12,008,744,718.33 837,784,542.82 5,548,587,934.40 11,078,096,624.59
7. Other significant transactions and matters that have impact on investors' decision-making
(I) Leasing
1. Company as lessee
(1) Details of right-of-use assets are set out in Note VII. 25 to the financial statements;
(2) The Company's accounting policies for short-term leases and leases of low-value assets are set out in Note V. 42 to the
financial statements. Expenses on short-term leases and lease of low-value assets included in profit or loss for the current period are
as follows:
Item Amount for the current period
Short-term lease expenses 14,170,570.16
Expenses on leases of low-value assets (excluding short-term
leases)
Total 14,170,570.16
(3) Profit or loss and cash flows relating to leases
Item Amount for the current period
Interest expense on lease liabilities 1,106,627.08
Variable lease payments that are included in profit or loss but
not included in the measurement of lease liabilities
Income from sublease of right-of-use assets
Total cash outflows relating to leases 20,516,544.34
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Profit or loss arising from sale and leaseback transactions
(4) Maturity analysis of lease liabilities and liquidity risk management are set out in Note X to the financial statements.
2. Company as lessor
(1) Operating lease
1) Lease income
Item Amount for the current period Amount for the same period of
prior year
Lease income 386,469.80 1,946,102.84
Including: Income relating to variable lease payments not
included in the measurement of lease receipts
2) Assets held under operating lease
Item Closing balance Balance at the end of last year
Investment properties 1,837,703.68 2,009,006.98
Sub-total 1,837,703.68 2,009,006.98
Details of investment properties leased out under operating lease are set out in Note VII. 20 to the financial statements.
3) Undiscounted future lease receipts in respect of non-cancellable leases under the lease contract signed with the lessee
Remaining maturity Closing balance
Within 1 year 157,112.00
1-2 years 157,112.00
2-3 years 157,112.00
3-4 years 157,112.00
4-5 years 157,112.00
Over 5 years 314,224.00
Total 1,099,784.00
(2) Financial lease
1) Profit or loss relating to finance lease
Item Amount for the current period
Financing gains on net lease investments 11,787,986.68
Including: Income relating to variable lease payments not
included in the net lease investments
2) Undiscounted future lease receipts in respect of non-cancellable leases under the lease contract signed with the lessee
Remaining maturity Closing balance
Within 1 year 170,788,078.94
1-2 years 52,525,528.58
2-3 years 5,998,312.06
3-4 years
4-5 years
Over 5 years
Total 229,311,919.58
3) Reconciliation between undiscounted lease receipts and net lease investments
Item Closing balance
Undiscounted lease receipts 229,311,919.58
Less: Unrealized financing gains relating to lease receipts 6,008,062.18
Add: Present value of unguaranteed residual value
Net lease investments 223,303,857.40
(II) PPP project contracts
The details of the Company's top five PPP project contracts are as follows:
Terms and conditions of the Classifi
Contract
contract that may have impact on The Company's rights and cation
No. Item General introduction of the contract modificatio
the amount, timing and risk of obligations of
n
future cash flows contrac
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t
1 Domes This is a waste incineration power Guaranteed annual waste The Urban Administrative No BOT;
tic plant project invested by the supply : no less than 180,000 and Law Enforcement Mixed
waste Company and Urban Administrative tons/year for Phase I and Bureau of Funan grant the mode
inciner and Law Enforcement Bureau of temporarily no specification for project company with
ation Funan County in the manner of BOT. Phase II; the waste treatment exclusive franchise rights in
power The plant is planned to be located in service is priced at RMB 52 per respect of the investment and
plant Funan, Anhui, and is mainly used for ton, which will be adjusted every financing, design,
project incineration treatment of domestic three years; if the annual waste construction, operation and
in waste in Funan. The planned total supply from Urban maintenance of domestic
Funan investment is RMB 1.24 billion and Administrative and Law waste power generation
Count designed domestic waste treatment Enforcement Bureau is more project within its jurisdiction;
y capacities are 500 tons (Phase I) and than 360,000 tons, the mutual the project company is
1,000 tons (Final). The franchise parties may build another plant, responsible for the
operating period is 30 years (startingfor which the Company has the investment and financing,
from the date of commercial priority in investment and design, construction,
operation). The project has started construction under the equivalent operation and maintenance of
commercial operation in 2020. conditions; the remaining the project facilities at its
electricity of the Company is own expenses,
connected to the grid in responsibilities and risks
accordance with relevant within the franchise period
procedures and priced in and transfers the project
accordance with the Electricity facilities, which should be
Purchase Contract. safe and sound, to Urban
Administrative and Law
Enforcement Bureau or its
designated institution at no
consideration upon expiry of
the franchise period.
2 Urban This is a waste treatment project From the date of operation, the During the cooperation No DBOT
and invested by the Company and Urban guaranteed annual waste supply period, the project company &ROT;
rural Administrative and Law Enforcement is 146,000 tons. If the delivered has the exclusive rights for Intangi
domest Bureau of Liling in the manner of waste is less than the guaranteed the investment, construction, ble
ic DBOT and ROT. It is mainly used to volume, the waste treatment cost operation, maintenance and assets
waste incinerate the domestic waste in will be charged based on the management of the project in mode
resour Liling, with planned total investment guaranteed volume. The unit Liling. The project company
ceful of RMB 717 million. It comprises 3 price for waste collection and provides the Urban
treatm sub-projects, including the urban and transportation is RMB 198 per Administrative and Law
ent rural domestic waste collection and ton (price for daily handling Enforcement Bureau with
PPP transportation system construction capacity below 600 tons/day); waste treatment service, and
project project (DBOT), urban and rural the unit price for waste charges waste treatment fee
in Li domestic waste disposal and pretreatment and incineration to Urban Administrative and
Ling incineration power generation project power generation service is RMB Law Enforcement Bureau;
(DBOT) and domestic waste 84 per ton (price for daily meanwhile, the project
harmless treatment Plant (ROT). The handling capacity below 600 company sells the excess
designed capacity in waste collection tons/day); the unit price for electricity generated through
and transportation is 600 tons/day, landfill service is RMB 56.71 per waste incineration to the
and the designed capacity of the ton (calculated at handling power company and charges
pretreatment and incineration power capacity of 300 tons/day) or electricity fee; it also sells
project is 600 tons/day for the near RMB 37.53 per ton (calculated at recyclable metal and refuse
term and 900 tons/day for the long handling capacity of 600 derived fuel and charges fees.
term. The project cooperation period tons/day); the excess over The project company is
is 25 years, starting from November designed waste handling capacity responsible for the
2018. will be compensated as per the investment and financing,
agreement. The remaining design, construction,
electricity of the Company is operation and maintenance of
connected to the grid in the project facilities at its
accordance with relevant own expenses,
procedures and priced in responsibilities and risks
accordance with the Electricity within the cooperation period
Purchase Contract. and transfers the project
facilities, which should be
safe and sound, to Urban
Administrative and Law
Enforcement Bureau or its
designated institution at no
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
consideration upon expiry of
the cooperation period.
3 Sanitat This is a sanitation integration project The service fee receivable of the The project company No DBOT
ion invested by the Company and Urban project is the total service fee for undertakes the investment &ROT;
Integra Administration and Law Enforcement each natural month less and financing, purchase of Intangi
tion Bureau of Baoan, Shenzhen in the deductions arising from routine vehicles and equipment, ble
PPP manner of BOT. It comprises the inspections. Operation service design and construction, assets
Project comprehensive cleaning of roads, fee of natural month = road operation, maintenance and mode
for waste sorting collection and comprehensive cleaning fee of transfer of the parking lot
Xin'an, management for public areas and natural month + waste collection during the operation period
Fuyon "village" in the city (including and transportation fee of natural and is required to transfer the
g and facility layout, maintenance and month + public toilet project assets, project
Fuhai management), other waste collection management fee of natural facilities, project sites (except
Streets and transportation, operation, month + afforested maintenance for parking lot constructed on
management and maintenance of fee of natural month + sanitation the site acquired by the
refuse transfer station, operation, parking lot service fee of natural project company on its own.
management and maintenance of month + smart sanitation However, if the land is
public toilets, construction, operation platform operation and provided by government, the
and maintenance of sanitation maintenance fee of natural site should be transferred to
parking lot, afforested maintenance, month. Since the commencement the implementation
construction and maintenance of of operation period, the price is institution) to the
smart sanitation platform and adjusted for every 3 years. implementation institution
sanitation emergency support within upon expiry of the operation
the administrative region of Xin'an, period. During the operation
Fuyong and Fuhai Sub-district of period, the project company
Baoan District. The initial investment charges fees to the Street
of this project is RMB 520 million. Office according to the
The operation period of the project is agreements.
15 years (including construction and
facility layout period of 1 year) from
June 1, 2020 to May 31, 2035.
4 Circul This is a circular economy industrial The way of return on the sub- According to the national No DBOT
ar park PPP project located in Xiantao projects including resourceful laws and regulation, Urban &ROT;
econo Municipality, Hubei Province and utilization of kitchen waste, Administration and Law Intangi
my invested by the Company and Urban harmless disposal of sludge, Enforcement Bureau of ble
industr Administration and Law Enforcement resourceful utilization of Xiantao grants Xiantao assets
ial Bureau of Xiantao in the manner of construction waste, leachate Yinghe Environmental mode
park BOT. This industrial park project treatment station (Phase II), Protection Co., Ltd. with
PPP covers 8 sub-projects including leachate treatment station (Phase exclusive rights within the
project resourceful utilization kitchen waste, I), domestic waste transfer project service area and
of harmless disposal of sludge, system and domestic waste cooperation period in respect
Xianta resourceful utilization of construction sanitary landfill site is of: (1) the investment,
o waste, leachate treatment station government subsidy for construction, operation and
Munici (Phase II), leachate treatment station feasibility gap, which is maintenance of the 5
pality (Phase I), domestic waste transfer determined by applying the unit subprojects including
system (the cooperation periods of price of waste disposal to the resourceful utilization of
the above 6 sub-projects are 30 years highest among basic supply, kitchen waste, harmless
from the commencement date of each actual disposal capacity and disposal of sludge,
sub-project, including construction designed capacity. Therein, the resourceful utilization of
period of 1 year and operation period unit price is adjusted every three construction waste, leachate
of 10 years), and domestic waste years; the fees for leachate treatment station (Phase II),
sanitary landfill site (cooperation treatment station (Phase II) and Xiantao Environmental
period is 10 years and 3 months from domestic waste sanitary landfill Science and Technology
the commencement date of the site (fly ash landfill) are solely Museum ); (2) the
project, including construction period paid by the user. For products of investment, reconstruction,
of 3 months and operation period of the Company generated by operation and maintenance of
10 years), with total investment of treatment and comprehensive the 3 subprojects including
RMB 462 million. The domestic utilization of waste, including leachate treatment station
waste transfer system was put into but not limited to electricity, (Phase I), domestic waste
use in succession during 2019 - 2020, construction materials, etc., the transfer system, and domestic
while the remaining subprojects are ownership and income of the waste sanitary landfill site.
still in construction. products are attributable to the Xiantao Yinghe
Company. Environmental Protection
Co., Ltd. is responsible for
the investment, construction,
operation and maintenance of
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
project facilities during the
cooperation period at its own
costs, responsibility and
risks, and transfers the
project facilities, which
should be safe and sound, to
Urban Administration and
Law Enforcement Bureau of
Xiantao at no consideration
and ensures the facilities
work properly upon the
expiry of the cooperation
period. Xiantao Yinghe
Environmental Protection
Co., Ltd. provides the
services including resourceful
utilization of kitchen waste,
harmless disposal of sludge,
resourceful utilization of
construction waste,
environmental science and
technology museum service,
domestic waste transfer,
emergency landfill of
domestic waste, landfill of fly
ash etc. and has the rights to
charge service fees.
5 Domes This is a waste incineration power Since the date of commercial The People's Government of No DBOT
tic plant project invested by the operation, the guaranteed annual Xiantao grants the project &ROT;
Waste Company and the People's supply is 180,000 tons for Phase company with exclusive Intangi
Inciner Government of Xiantao in the I project and 290,000 tons for franchise rights for ble
ation manner of BOT. The plant is located Final Phase project. If the supply investment and financing, assets
Power in Xiantao Municipality, Hubei is less than guaranteed volume, design, construction, mode
Plant Province, and is mainly used for the waste disposal fee is operation and maintenance of
in incineration of domestic waste in calculated based on the domestic waste power project
Xianta Xiantao. The planned total guaranteed volume; the waste in its jurisdiction. The project
o investment is RMB 455 million and treatment price is RMB 35 per company is responsible for
Munici designed capacities in disposal of ton, which is adjusted every three the investment and financing,
pality domestic waste are 500 tons (Phase I) years. The project company design, construction,
and 1,000 tons (Final). The franchise assumes the obligation to operation and maintenance of
operating period is 30 years (starting continue to construct the Phase II the project facilities at its
from the date of commercial project to satisfy the waste own expenses,
operation). The Phase I project has supply exceeding 500 tons/day responsibilities and risks
started commercial operation in 2018, by Party A. The remaining within the franchise period
while the Final Phase project has electricity (excluding the portion and transfers the project
started commercial operation in 2019. for self-use) generated by the facilities, which should be
project company is connected to safe and sound, to the
the grid in accordance with People's Government of
relevant procedures. The basic Xiantao at no consideration
quantity and price of electricity upon expiry of the franchise
connected to the grid are period.
determined in accordance with
relevant state regulations.
(III) Other significant transactions and matters that have impact on investors' decision-making
1. As of December 31, 2020, the Company’s controlling shareholder, de facto controller and persons acting in concert held a
total of 1,441,121,828 shares of the Company, accounting for 45.56% of the Company’s total share capital, of which 843,740,153
shares were pledged, accounting for 58.55% of its holdings of the Company, and 26.54% of the Company’s total share capital.
Details are as follows:
Shareholder Holder of the pledge Number of share Initial Repurchase date Remarks
pledged transaction date
China Construction Bank
November 28, December 31,
Infore Group Corporation Limited, Foshan 100,000,000 Financing
2019 2023
Branch
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Terminate until
Providing guarantee
owner of
for exchangeable
pledged
corporate bonds for
CITIC Securities Co., Ltd. 100,000,000 July 10, 2020 collateral
share swaps or
completes the
repayment of principal
termination
and interest
procedures
Sub-total 200,000,000
China Construction Bank
December 31, Replenishment of
Corporation Limited, Shunde 21,218,395 July 24, 2020
2023 working capital
Branch
He Jianfeng
China Construction Bank
December 31, Replenishment of
Corporation Limited, Shunde 11,723,329 July 24, 2020
2023 working capital
Branch
Sub-total 32,941,724
China Minsheng Banking
Ningbo Infore Asset
Corporation Limited, Foshan 610,798,429 June 25, 2021 March 29, 2024 Financing for M&A
Management Co., Ltd.
Branch
Total 843,740,153
2. Recognition of performance compensation
According to the Proposal on Signing the Equity Transfer Agreement and Cooperation Framework Agreement deliberated and
approved by the 13th interim meeting of the seventh session of Board of Directors on October 14, 2015, the Compa ny signed the
Equity Transfer Agreement and Framework Agreement on Cooperation with Shenzhen Greenlander Environmental Protection Co.,
Ltd. ("Greenlander Environmental") (the "Cooperation Framework Agreement") with the counterparty. According to the agreement,
the Company acquires the total 51% equity of Greenlander Environmental held by Shenzhen Feima Investment Co., Ltd. (Feima
Investment) and Shenzhen Qianhai Chima Environment Protection Co., Ltd.(Chima Investment) at the price of RMB 100,548,976.00,
including RMB 96,605,878.90 for the 49% equity held by Feima Investment and RMB 3,943,097.10 for the 2% equity held by
Chima Investment respectively.
According to the Cooperation Framework Agreement, the Greenlander Investment Holdings Co., Ltd. (the "HK Inve stment
Company"), Zheng Weixian made commitments in respect of the performance of Greenlander Environmental for the next four years,
specifically as follows: (1) from January 1, 2016 to December 31, 2019, the total net profit realized by Lianjiang Greenlander New
Energy Co., Ltd.("Lianjiang Company" ), Xiantao Greenlander Environmental Protection Power Co., Ltd ("Xiantao Company"),
Funan Greenlander Environmental Energy Co., Ltd. ("Funan Company"), Shouxian Greenlander New Energy Co., Ltd. ("Shouxian
Company") (hereinafter referred to as the "Four Project Companies") shall not be less than RMB 120 million, otherwise, the HK
Investment Company and Zheng Weixian would compensate Infore Enviro at 60% of the difference of committed aggregate net
profit net of accumulated profit realized. The compensation shall be made in cash, if the cash compensation is insufficient, the deficit
shall be compensated using the equity of Greenlander Environmental held by the HK Investment Company; (2) within 24 months
subsequent to the completion of commercial and industrial registration of capital increase, the HK Investment Company should
transfer its Luyi Project, Puyang Project to Greenlander Environmental and ensure the commencement of the construction accord ing
to the schedule. If the above projects can't be transferred, partially transferred within the specified period or can't be transferred, or
withdrawn or canceled by the government, the HK Investment Company and Zheng Weixian shall pay an one-off compensation to
Infore Enviro at no less than RMB 5 million for each project. (3) Poyang Project, Yangxin Project must commence and obtain
approvals prior to December 31, 2018. In case of failure to commence or withdrawal by the government, the HK Investment
Company and Zheng Weixian shall compensate the Company at no less than RMB 10 million for each project. (4) Jiujiang Company
must start the construction and obtain the approvals prior to December 31, 2020. In case of failure to commence or withdrawal by the
government, the HK Investment Company and Zheng Weixian shall compensate Infore Enviro at no less than RMB 5 million for
each project. (5) From January 1, 2016 to December 31, 2019, the Greenlander Environmental signs a new BOT Agreement on
Waste Incineration Power Generation (subject to the signing of franchise agreement), with daily disposal capacity of no less than
6,500 tons (the daily disposal capacity of each single project shall be no less than 500 tons, and at least one project have a capacity of
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
more than 2,000 tons). In case of failure to satisfy the aforesaid conditions, the HK Investment Company and Zheng Weixian shall
compensate Greenlander Environmental at RMB 5 million for every 500 tons below the specified daily disposal capacity.
In addition, in 2015, the Company and the HK Investment Company entered into the equity pledge contract, specifying that the
HK Investment Company pledges its 49% equity in Greenlander Environmental as collateral for the debt portfolio with value of
RMB 340 million specified in the Cooperation Framework Agreement. In the same year, the equity pledge procedures were
completed.
As of October 31, 2015, the Company had made full payment for the equity transfer. Greenlander Environmental was included
in the scope of the Company's consolidated financial statements since the end of October 2015. In April 2016, the Company
continued to inject capital of RMB 86,666,700 to acquire 19.00% equity of Greenlander Environmental. Finally, the Company holds
70% equity of Greenlander Environmental. On April 23, 2020, Pan-China Certified Public Accountants LLP issued the Assurance
Report on Status of Completion of the Performance Commitments of Shenzhen Greenlander Environmental Protection Co., Ltd.
(Tian Jian Shen [2020] No.3439). According to the assurance report, the audited net profits (net profit is subject to the lower after
deducting non-recurring profit or loss) of four project companies for the period from 2016 to 2019 are RMB 2,156,500, RMB -
24,424,500, RMB -19,192,800 and RMB -625,700 respectively; and the accumulated net profit is RMB -42,086,600 which is RMB
162,086,600 less than the performance commitment, indicating a failure to achieve the commitment in respect of the net profit for
2016 - 2019.
To facilitate the implementation of performance compensation, the Company filed a lawsuit with Foshan Intermediate People's
Court in Guangdong Province, requesting the HK Investment Company ad Zheng Weixian to compensate the Company in
accordance with the Cooperation Framework Agreement.
On January 13, 2021, the Foshan Intermediate People's Court in Guangdong Province issued a judgment of first instance,
requiring the HK Investment Company and Zheng Weixian to pay the compensation of RMB 113,460,620, i.e. [120,000,000 - (-
42,086,600)]*70%, for failure to achieve the performance commitment; and compensation of RMB 50 million for failure to achieve
the commitment of daily disposal capacity; meanwhile, it also supports that the Company has priority to compensation in relat ion to
the 30% equity of Greenlander Environmental held by the HK Investment Company to the extent of RMB 200 million.
On January 29, 2021, the HK Investment Company and Zheng Weixian appealed to the Higher People's Court of Guangdong
Province.
On November 2, 2021, the Higher People's Court of Guangdong Province held a public hearing of the case of second instance.
According to the Case Report on Infore Enviro and Shenzhen Greenlander Environmental Protection Co., Ltd. Filing A Lawsuit
against the HK Investment Company, Zheng Weixian, Ren Zhe etc. Regarding the Contract Disputes issued issued on March 30,
2022 by Guangdong ETR Law Firm, which is the law firm handling this case, after the public hearing of the second instance, the law
firm believes that: (1) the court of first instance held that whether the core operation team led by Zheng Weixian has been
comprehensively managing the target company all the time is not a precondition for the performance of the HK Investment Compa ny
and Zheng Weixian. This determination is in line with the contract agreement and accurate; In respect of the governance of
Greenlander Environmental, the Company has no violation of contract; It is lack of business logic that the HK Investment Company
and Zheng Weixian ascribe the failure to achieve expected performance to the ownership of operation rights. The first-instance
court's cognizance of the fact is accurate and the application of laws is correct. (2) The Higher People's Court of Guangdong Province
held a public hearing for the case of second instance. During the trial, although the HK Investment Company and Zheng Weixian
presented some evidences, the law firm believes that such evidences are not sufficient to change the verdict of the first ins tance.
Therefore, considering the first-instance court's cognizance of the fact is accurate and the application of laws is correct, the second-
instance court upheld the verdict of the first instance. As of the date of this case report, the effective judgment for the c ase (2021)
Yue Min Zhong No.1075 has not been received yet. The final outcome of the case is subject to the content of the effective judgment.
Meanwhile, the Company appointed Guangdong Dafang Law Firm, which is a law firm not related with this case, to analyze the
aforesaid case and issue a legal analysis report. The analysis report points that taking into account the terms and conditions of the
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
agreements and facts involved in this case, and the HK Investment Company and Zheng Weixian didn't present new effective
evidences that may reverse the first-instance judgment during the trial of the second instance, the lawyer of Guangdong Dafang Law
Firm believes that the first-instance court's cognizance of the fact is accurate and the application of laws is correct, the second-
instance court shall upheld the verdict of the first instance.
In conclusion, the Company believes that the above compensations of RMB 113,460,620 and RMB 50,00,000, totaling to RMB
163,460,620 represent the resources that arise from the Company's past transactions or events and are owned or controlled by the
Company and expected to bring economic benefits to the Company. The Company has won the lawsuit according to the first-instance
judgment. Up to date, the Higher People's Court of Guangdong Province held a public hearing for the case of second instance.
During the trial, although the HK Investment Company and Zheng Weixian presented some evidences, but such evidences are not
sufficient to overrule the verdict of the first instance.
In respect of the recoverability of the aforementioned compensations, the Company has pledged the equity of Greenlander
Environmental held by the HK Investment Company and Zheng Weixian in 2015. Meanwhile, the first-instance judgment also
supports that the Company has priority to compensation in relation to the 30% equity of Greenlander Environmental held by the HK
Investment Company to the extent of RMB 200 million. Therefore, the compensations of RMB 113,460,620 and RMB 50,00,000,
totaling to RMB 163,460,620 are fully recognized as investment income in 2021 financial statements.
3. On April 29, 2022, according to the Proposal on Splitting the Subsidiary Zhejiang Shangfeng Special Blower Industrial Co.,
Ltd. for GEM Listing and Proposal on Plan of Infore Environment Technology Group Co., Ltd. on the Proposal on the Subsidiary
Zhejiang Shangfeng Special Blower Industrial Co., Ltd. for GEM Listing (Revised) deliberated and approved by the 18th meeting of
the ninth session of Board of Directors of the Company, the Company proposes to split the subsidiary Zhejiang Shangfeng Special
Blower Industrial Co., Ltd. for GEM listing. The said proposal shall be submitte d to the Company’s annual general meeting of
shareholders for further consideration.
XVII. Notes to key items in the Parent Company's financial statements
1. Other receivables
Unit: RMB
Item Closing balance Opening balance
Dividend receivable 50,000,000.00
Other receivables 3,884,005,093.84 3,045,331,754.24
(1) Dividend receivable
1) Category of dividends receivable
Unit: RMB
Item (Investee) Closing balance Opening balance
Donggang Magnet Wire Company 50,000,000.00
Total 50,000,000.00
3) Bad debt provision
□ Applicable √ Not Applicable
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(3) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of the account Closing balance Opening balance
Security deposits 293,673.40 452,729.40
Loans 30,165,333.33
Temporary advance payment receivable 3,723,204,530.33 3,021,731,383.55
Performance commitments compensation 163,460,620.00
Total 3,886,958,823.73 3,052,349,446.28
2) Bad debt provision
Unit: RMB
Stage I Stage II Stage III
Bad debt provision 12-month expected Lifetime ECL (not credit- Lifetime ECL (credit- Total
credit loss (ECL) impaired) impaired)
Balance at January 1,
75,638.29 1,448,649.82 5,493,403.93 7,017,692.04
2021
Balance at January 1,
2021 in the current —— —— —— ——
period
--Transfer to stage II -75,638.29 75,638.29
--Transfer to stage III -1,448,649.82 1,448,649.82
Provision in the current
2,352,013.49 414,287.09 5,334,169.41 8,100,469.99
period
Other changes -12,164,432.14 -12,164,432.14
Balance on December 31,
2,352,013.49 489,925.38 111,791.02 2,953,729.89
2021
Changes in book balance with significant changes in loss allowance in the current period
□ Applicable √ Not Applicable
Disclosure by account aging
Unit: RMB
Account aging Book balance
Within 1 year (inclusive) 3,881,765,896.51
1-2 years 4,899,253.82
2-3 years 205,228.40
Over 3 years 88,445.00
3-5 years 68,445.00
Over 5 years 20,000.00
Total 3,886,958,823.73
3) Provision, recovery or reversal of bad debt in the current period
NA
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4) Other receivables written off in current period
NA
5) Details of the top 5 debtors with the largest balances of other receivables
Unit: RMB
Proportion to the
Nature of other Closing balance of
Debtors Closing balance Account aging total balance of other
receivables bad debt provision
receivables (%)
Temporary advance 821,959,307.56
Customer A 1-180 days 21.15% 0.00
payment receivable
Temporary advance 515,992,265.80
Customer B 1-180 days 13.26% 0.00
payment receivable
Temporary advance 456,782,205.25
Customer C 1-180 days 11.74% 0.00
payment receivable
Temporary advance 286,545,351.52
Customer D 1-180 days 7.37% 0.00
payment receivable
Temporary advance 250,082,730.73
Customer E 1-180 days 6.43% 0.00
payment receivable
Total -- 2,331,361,860.86 -- 59.98%
6) Other receivables derecognized due to transfer of financial assets
NA
7) Assets and liabilities arising from continuing involvement in the transferred other receivables
NA
2. Long-term equity investments
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying amount Book balance Carrying amount
provision provision
Investments in 16,727,278,440.0 16,727,278,440.0 16,490,166,786.4 16,490,166,786.4
subsidiaries 2 2 9 9
Investments in
associates and 228,769,450.70 228,769,450.70 204,174,912.87 204,174,912.87
joint ventures
16,956,047,890.7 16,956,047,890.7 16,694,341,699.3 16,694,341,699.3
Total
2 2 6 6
(1) Investments in subsidiaries
Unit: RMB
Opening Changes for the current period
Investee Closing balance Closing balance
balance
Additional Reduction in Impairment Others (carrying of impairment
(carrying
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amount) investment investment provision amount) provision
Infore Water
Environment 113,055,998.0
113,055,998.06
Investment Co., 6
Ltd.
Foshan Infore
Water
250,020,000.0
Environment 250,020,000.00
0
Investment Co.,
Ltd.
Guangdong
Infore 127,874,197.5
5,051,045.84 132,925,243.41
Technology Co., 7
Ltd.
Infore Zoomlion
Urban
Environmental 15,300,000.00 15,300,000.00
Service Co.,
Ltd.
Guangdong
Infore
100,000,000.0
Environmental 100,000,000.00
0
Investment Co.,
Ltd.
Foshan
Yingtong
178,500,000.0 178,500,000.0
Electrical
0 0
Materials Co.,
Ltd.
Changsha
Zhongbiao
Environmental 5,270,000.00 5,270,000.00
Industry Co.,
Ltd.
Ningbo Infore
356,322,974.6
Finance Lease 356,322,974.66
6
Co., Ltd.
Foshan Shunde
Huaqingyuan
Environmental 906,452.53 -7,242.37 899,210.16
Protection Co.,
Ltd.
Zoomlion 15,254,446,51 15,258,688,696
4,242,181.90
Environmental 4.89 .79
Zhejiang
Shangfeng
199,923,314.8
Special Blower 187,709.07 200,111,023.93
6
Industrial Co.,
Ltd.
Greenlander 190,312,493.9
617,959.09 190,930,453.01
Environmental 2
Baharian Right
Banner
Xingzhou 23,000,000.00 23,000,000.00
Environmental
Water Co., Ltd.
Xiantao Yinghe
Environmental 103,754,840.0
103,754,840.00
Protection Co., 0
Ltd.
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
16,490,166,78 438,611,653.5 201,500,000.0 16,727,278,440
Total
6.49 3 0 .02
(2) Investments in associates and joint ventures
Unit: RMB
Changes for the current period
Cash Closing
Opening Profit and Closing balance
Adjustmen dividends
balance loss on balance of
Investor Reduction t of other Other or profits
(carrying Additional in
investment
comprehen equity to be
Impairmen
Others (carrying impairme
amount) investment s under the t provision amount) nt
investment sive changes distributed
equity provision
income as
method
announced
I. Joint ventures
II. Associates
Shenzhen
g
Yingmei
0.00 30,000.00 30,000.00
City
Stewards
Co., Ltd.
Guangdo
ng
Tianshu
-
New 8,000,000 2,799,486
5,200,513
Energy .00 .97
.03
Technolo
gy Co.,
Ltd.
Tengine
Innovatio
n
(Beijing) 29,563,17 902,107.4 260,167.1 30,205,11
Monitorin 5.06 2 2 5.36
g
Instrumen
t Co., Ltd.
Guangdo
ng
Shunkong
Environm 174,611,7 28,696,90 7,573,789 195,734,8
ental 37.81 0.39 .83 48.37
Investme
nt Co.,
Ltd.
204,174,9 8,030,000 24,398,49 7,833,956 228,769,4
Sub-total
12.87 .00 4.78 .95 50.70
204,174,9 8,030,000 24,398,49 7,833,956 228,769,4
Total
12.87 .00 4.78 .95 50.70
3. Operating income and operating costs
Unit: RMB
Current period actual Amount for the prior period
Item
Income Cost Income Cost
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Main Business 487,932.74 487,932.74 7,213,284.07 4,157,985.26
Total 487,932.74 487,932.74 7,213,284.07 4,157,985.26
4. Investment income
Unit: RMB
Item Current period actual Amount for the prior period
Income from long-term equity investment
427,103,189.89
income accounted by cost method
Income from long-term equity investments
24,398,494.78 30,182,747.26
under equity method
Investment income from disposal of long-
73,073,695.75 -104,720,709.28
term equity investments
Investment income from holding the held-
11,250,000.00
for-trading financial assets
Gains on wealth management products 2,931,309.05 10,487,138.70
Performance compensation 163,460,620.00 839,195.26
Others 6,568,573.41 442,452.21
Total 697,535,882.88 -51,519,175.85
XVIII. Supple mentary information
1. Schedule of non-recurring profit or loss
√ Applicable □ Not Applicable
Unit: RMB
Item Amount Note
Gains of RMB 8,040,787.90 for the
disposal of long-term equity; loss of RMB
2,254,626.67 for the disposal of fixed
Gains or losses on disposal of non-current
6,337,251.97 assets; gains of RMB 1,092,784.45 for the
assets
disposal of assets under construction; loss
of RMB 541,693.71 for the retirement of
fixed assets
Tax rebates, reductions and exemptions
granted ultra vires or without official 3,768,945.18
documents of approval
Government subsidies recognized as gain or
loss during the reporting period (exclusive of
government subsidies given in the
55,341,877.03
Company's ordinary course of business at
fixed quotas or amounts as per the
government's policies or regulations)
Guangdong Liangke Environmental
Protection Engineering Co., Ltd., RMB
1,211,591.98; Shantou Zhonglian Ruikang
Environmental Health Service Co., Ltd.,
Capital collected from non-financial RMB 726,429.04; minority shareholders of
enterprises that was recognized as gain or 3,173,551.55 Shangfeng Industrial Company, RMB
loss during the reporting period 645,168.12; Lianjiang Greenlander New
Energy Co., Ltd., RMB 474,994.40; Jilin
Xinyu Environmental Technology Group
Co., Ltd., RMB 92,260.00; Shantou
Zhonglian Ruikang Environmental Health
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Service Co., Ltd, RMB 19,599.99; Suzhou
Xingzhou Environmental Water Treatment
Technology Co., Ltd., RMB 3,508.02
Returns of RMB 29,170,261.66 on
Gain or loss on assets entrusted to other
29,170,261.66 investments in wealth management
parties for investment or management
products
Changes in fair value of financial assets
Gain or loss arising from changes in fair held for trading: RMB -73,146,774.32;
value of financial assets and financial gain/loss for disposal of financial assets
liabilities held for trading as well as the held for trading: RMB -2,883,937.64;
disposal of financial assets and financial gain/loss for ineffective hedges that have
-79,222,823.84
liabilities held for trading and financial been closed: RMB -3,263,048.33; changes
assets available for sale (exclusive of in fair value of ineffective hedges that
effective hedges that arise in relation to the remain open: RMB72,100.27; gain/loss
Company's ordinary course of business) arising from futures transaction fees: RMB
-1,163.82
Other non-operating income and expense 2,598,028.75
Gain/loss from the disposal of Guangdong
Liangke Environmental Protection
Engineering Co., Ltd.'s creditors' rights:
Other gains and losses that fall into the RMB 8,999,098.81; original shareholders
172,459,718.81
definition of non-recurring gain/loss of Greenlander Environmental's
compensation for failing to meet
committed business performance: RMB
163,460,620.00
Less: Income tax -8,007,245.43
Non-controlling interests effects 5,892,314.48
Total 195,741,742.06 --
Details on other gains and losses that fall into the definition of non-recurring gain/loss:
√ Applicable □ Not Applicable
Gain/loss from the disposal of Guangdong Liangke Environmental Protection Engineering Co., Ltd.'s creditors' rights: RMB
8,999,098.81; original shareholders of Greenlander Environmental's compensation for failing to meet committed business
performance: RMB 163,460,620.00
The explanation for why the Company reclassified an item defined as an exceptional gain/loss item in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items as a recurrent item
√ Applicable □ Not Applicable
Item Amount Involved (RMB) Reason
Regular government subsidies given in the
Company's ordinary course of business at
Value-added tax rebate 22,195,312.61
fixed quotas or amounts as per the
government's policies or regulations
Regular government subsidies given in the
Company's ordinary course of business at
Subsidy for sludge disposal 3,056,730.58
fixed quotas or amounts as per the
government's policies or regulations
2. Return On Net Asset and Earnings Per Share
Earnings per share
Profit of the reporting period Weighted average return on equity (%) Basic earnings per share Diluted earnings per
(RMB/share) share (RMB/share)
Net profit attributable to
4.33% 0.23 0.23
shareholders of ordinary shares
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2021 Annual Report of Infore Environment Technology Group Co., Ltd.
Net profit attributable to
shareholders of ordinary shares
3.16% 0.17 0.17
after deducting non-recurring profit
or loss
3. Accounting data differences under China's Accounting Standards for Business Enterprises (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
(1) Net Profit and Equity under CAS and IFRS
□ Applicable √ Not Applicable
(2) Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not Applicable
(3) Explanation of reason for accounting data differences under CAS and IFRS and Foreign Accounting
Standards. For reconciliation of the difference of the figures audited by overseas auditor, please specify the
name of the auditor.
4. Others
270
