2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Zhejiang NHU Company Ltd.
2024 Semi-Annual Report
【August 2024】
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section I Important Notes, Contents, and Definitions
The Board of Directors and its members, Board of Supervisors and its members,
and senior executives of the Company hereby guarantee that the information
presented in this semi-annual report is authentic, accurate, complete and free of
false records, misleading statements or material omissions, and they will bear
individual and joint liabilities for such information.
胡柏藩 (Hu Baifan), the Company’s legal representative, 石观群 (Shi Guanqun),
the officer in charge of accounting, and 何江勇 (He Jiangyong), the head of
accounting department hereby declare that they guarantee the financial
statements in this semi-annual report are authentic, accurate and complete.
All members of the Board of Directors have attended the meeting of the Board
of Directors for deliberation of this semi-annual report.
The future plan and other forward-looking information disclosed in this semi-
annual report shall not be regarded as a commitment to investors. We kindly
remind investors of all possible risks in investments. The company provides a
detailed description of the potential risks and countermeasures that may exist in
the company's operations in X. Risks and countermeasures under Section III
Management Discussion and Analysis section of this report. We kindly remind
investors of all possible risks in investments.
The Company will not distribute cash dividend, distribute bonus shares, or
distribute shares from capital reserve during the current reporting period.
This Semi-Annual Report is an English translation of the Chinese Semi-Annual Report. In case the English version does
not conform to the Chinese version, the Chinese version prevails.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Contents
Section I Important Notes, Contents, and Definitions .......................................................................................... 1
Section II Company Profile and Key Financial Indicators .................................................................................. 5
Section III Management Discussion and Analysis ................................................................................................ 8
Section IV Corporate Governance ....................................................................................................................... 23
Section V Environmental and Social Responsibilities ........................................................................................ 26
Section VI Significant Events................................................................................................................................ 35
Section VII Movements in Shares and Information about Shareholders ......................................................... 43
Section VIII Preferred Shares .............................................................................................................................. 48
Section IX Bonds.................................................................................................................................................... 49
Section X Financial Report ................................................................................................................................... 50
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Documents Available for Reference
I. Financial statements signed and sealed by the Company’s legal representative, officer in charge of accounting,
and head of accounting department;
II. Original copy of all the Company's documents and announcements published on the newspapers designated by
CSRC within the reporting period
III. Other documents for reference.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Definitions
Abbreviations Refers to Contents of definitions
The Company, NHU Refers to ZHEJIANG NHU CO., LTD.
CSRC Refers to China Securities Regulatory Commission
PPS Refers to Polyphenylene Sulfide
PPA Refers to Poly Phthalamide
New material project, products including HDI and
HA Refers to
IPDA
HDI Refers to Hexamethylene Diisocyanate|
IPDA Refers to Isophorone Diamine
VOC Refers to Volatile Organic Compound
HSE Refers to Health, safety and environment
ESG Refers to Environmental, social and corporate governance
Ecovadis Refers to Corporate social responsibility assessment and rating
CLA Refers to Karon anhydride
NBC Refers to Azabicycles
SA Refers to Anisole
EJ Refers to Nylon material
Seiri、Seiton、Seiso、Seiketsu、Shitsuke、Safety and
7S Refers to
Saving
A4 Refers to Cystine Project
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section II Company Profile and Key Financial Indicators
I. Company profile
Stock abbreviation NHU Stock code 002001
Stock Exchange Shenzhen Stock Exchange
Company Name in Chinese 浙江新和成股份有限公司
Company Abbreviation in
新和成
Chinese
Company name in foreign
ZHEJIANG NHU COMPANY LTD.
language (if any)
Company Abbreviation in
NHU
foreign language (if any)
Legal representative Hu Baifan
II. Contact information
Items Board secretary Securities affairs representative
Name 石观群（Shi Guanqun） 曾淑颖 (Zeng Shuying)
No.418 Xinchang Dadao West Road, No.418 Xinchang Dadao West Road,
Contact address
Xinchang, Zhejiang, P.R.China Xinchang, Zhejiang, P.R.China
Tel. +86 575 86017157 +86 575 86017157
Fax +86 575 86125377 +86 575 86125377
E-mail address sgq@cnhu.com 002001@cnhu.com
III. Other Information
1. Company’s Contact Information
Whether the Company’s registered address, office address, zip code, website and e-mail address has changed during the reporting
period
□ Applicable √ Not applicable
The Company’s registered address, office address, zip code, website and e-mail address have not changed during the reporting
period, which can be found in the 2023 Annual Report.
2. Information Disclosure and Location
Whether information disclosure and location has changed during the reporting period
□ Applicable √ Not applicable
The name of the Company’s selected information disclosure newspaper, the URL of the website designated by the CSRC where
the semi-annual report is posted, and the place where the Company’s semi-annual report is available have not changed during the
reporting period, which can be found in the 2023 Annual Report.
3. Other relevant Information
Whether other relecant information has changed during the reporting period
□ Applicable √ Not applicable
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
IV. Key accounting data and financial indicators
Whether the Company needs to perform retroactive adjustment or restatement on financial data of prior years
□Yes √ No
Increase/ Decrease at the end of the
The Current Reporting The Same Period of the current reporting period compared
Items
Period Previous Year with the same period of the previous
year
Operating revenue (yuan) 9,844,712,214.36 7,418,514,576.09 32.70%
Net profit attributable to
shareholders of listed company 2,204,361,642.96 1,483,229,236.96 48.62%
(yuan)
Net profit attributable to
shareholders of listed company after
2,157,462,467.70 1,375,218,885.82 56.88%
deducting non-recurring profit or
loss (yuan)
Net cash flows from operating
2,138,324,059.35 1,235,562,621.93 73.06%
activities (yuan)
Basic EPS (yuan/share) 0.71 0.48 47.92%
Diluted EPS (yuan/share) 0.71 0.48 47.92%
Weighted average ROE 8.58% 6.09% Increased by 2.49 percentage points
Increase/Decrease at the end of the
Items Jun. 30, 2024 Dec. 31, 2023 current reporting period compared
with the end of the previous year
Total assets (yuan) 40,094,294,896.00 39,156,246,864.67 2.40%
Net assets attributable to
shareholders of listed 25,658,295,255.25 24,804,662,320.99 3.44%
company (yuan)
V. Differences in accounting data under Chinese accounting standards and overseas
accounting standards
1. Difference in net profit and net assets in financial statements disclosed respectively under IFRS Standards and Chinese
accounting standards
□ Applicable √ Not Applicable
The Company has no difference in net profit or net assets in financial statements disclosed respectively under IFRS Standards and
Chinese accounting standards.
2. Difference in net profit and net assets in financial statements disclosed respectively under overseas accounting standards
and Chinese accounting standards
□ Applicable √ Not Applicable
The Company has no difference in net profit or net assets in financial statements disclosed respectively under overseas accounting
standards and Chinese accounting standards.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
VI. Non-recurring profit or loss
√ Applicable □ Not Applicable
Unit: RMB Yuan
Items Amount Remarks
Gains or losses on disposal of non-current assets,
-1,128,442.54
including write-off of provision for impairment
Government grants included in profit or loss
(excluding those closely related to operating
activities of the Company, satisfying government
59,818,451.66
policies and regulations, and continuously enjoyed
with certain quantity or quota based on certain
standards)
Gains or losses on changes in fair value of held-for-
trading financial assets and held-for-trading financial
liabilities, and investment income from disposal of
-4,445,860.49
held-for-trading financial assets and held-for-trading
financial liabilities, excluding those arising from
hedging business related to operating activities
Gains or losses on assets consigned to the third party
808,128.72
for investment or management
Other non-operating revenue or expenditures -203,096.63
Less: Enterprise income tax affected 7,854,767.77
Non-controlling interest affected (after tax) 95,237.69
Total 46,899,175.26
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□ Applicable √ Not Applicable
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.
Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria for
Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.
□ Applicable √ Not Applicable
The Company has no situation of defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information
Disclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section III Management Discussion and Analysis
I. The main business of the Company during the reporting period
The Company is a national high-tech company mainly engaged in the production and sales of nutrition, aroma chemicals,
new polymer materials, and APIs. It focuses on fine chemicals, adheres to the concept of innovation-led development
and competition-driven growth, and continuously develops various functional chemicals based on the two core
platforms of chemical and biology, providing value-added services and solutions to customers in more than 100
countries and regions around the world. It continuously improves the quality of human life with high-quality, healthy
and green products, and creates sustainable value for stakeholders. With leading technology, scientific management and
sincere service, the Company has become one of the top 100 national fine chemical companies, one of the top 10
companies in China’s light of industry fragrance and a well-known special engineering plastics manufacturer.
1. Main products and applications
Nutrition: The current products mainly cover vitamins, amino acids and pigments, etc. Specific products include vitamin E, vitamin
A, vitamin C, methionine, vitamin D3, biotin, coenzyme Q10, carotenoids, vitamin B5, vitamin B6, vitamin B12, taurine, serine, etc.
They are mainly used in feed additives and nutrition supplements of food, beverages, health food, etc. The Company actively
implements the serialized and differentiated development of nutrition, and continuously improves the competitiveness of its products
by optimizing the processing line and tackling key issues. In addition, through internal integration and external cooperation, it
embraces the ideology of open cooperation. It actively deploys cutting-edge biotechnology, and builds the Company’s “Bio+”
platform.
Aroma Chemicals: At present, our main fragrance products include linalool, citral, and cis-3-hexenol series, and methyl
dihydrojasmonate, raspberry ketone and ligustral, which are widely used in personal care, cosmetic and food fields. From the
perspective of competitiveness and market share, NHU becomes an important supplier in the global aroma chemicals industry. The
Company continuously enriches the varieties of fragrance products to meet the changing market demands.
Polymer materials: The company focuses on the development of high-performance polymers and key intermediates, moderate
development of downstream applications of materials, the main products include polyphenyl sulfide (PPS), high temperature nylon
(PPA), HDI, IPDA, downstream applications include automotive, electronic appliances, environmental protection, industrial
applications and other fields. At present, the company has created a whole industry chain of PPS from basic raw materials to high
polymer, then to modified processing, to special fibers, becoming the only domestic enterprise that can stably produce fiber grade,
injection grade, extrusion grade, coating grade PPS, and is developing new material projects in the whole industry chain.
APIs: The main products are concentrated in the series of vitamins and antibiotics. The main products include moxifloxacin
hydrochloride, vitamin A, vitamin D3, etc., which are mainly used as active pharmaceutical ingredients for processing and producing
pharmaceutical preparations.
2. Main business models
(1) Procurement model
The company has always adhered to the procurement principle of “fairness, transparency and optimal cost”, adopted the dual strategy
of long-term strategic cooperation and open competitive procurement, deepened the market trend and market analysis, and ensured
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
the steady supply of strategic materials. Pay attention to source procurement, reduce intermediate links, reduce procurement costs.
Promote sunshine procurement, establish an information system, and make the procurement process transparent, standardized and
efficient. Select suppliers with good reputation and quality products, and sign quality assurance agreements to ensure stable and
reliable performance of purchased items. We will give priority to environmentally friendly, energy-saving and sustainable products
and services, encourage suppliers to achieve green production and operation, and gradually promote carbon emission reduction and
carbon neutrality plans. Select suppliers with a good sense of social responsibility, pay attention to their social responsibility
performance, establish long-term cooperative relations, and achieve sustainable development of procurement activities.
(2) Production model
The Company has always been adhering to the production strategy based on the principle of “production and sales coordination,
efficient operation, excellent quality, and cost leadership”. The Company maintained a balance between production and sales
through analysis of changes in market demands, effective response to repeated epidemic waves and dual-control power cuts, and
reasonable production plans. In addition, the Company keeps innovating the production model, digging out internal potentials, and
optimizing the production process, in order to promote safe, green, standardized and efficient production, and continuously improve
the competitiveness of its products.
(3) Sales model
The Company has always been adhering to the “customer-centric, market-oriented” sales strategy. It divides business lines by product
application fields, and establishes a sales model that suits market needs according to market characteristics and industry practices.
Most of the Company’s sales are achieved through direct sales. By doing so, it establishes long-term and stable strategic cooperative
relationships with end customers to create greater value for them. Meanwhile, it also selects excellent agents or distributors for
distribution. By doing so, it services customers indirectly based on market and customer features. At the same time, through measures
such as holding customer service months, strengthening customer strategic cooperation, establishing customer evaluation models,
and optimizing customer classification management, we will continue to expand market areas, increase new large-scale customers,
and enhance brand influence.
3. Key performance drivers
The Company has built four modern industrial bases across the country. It adheres to the development strategy of integration,
serialization and synergy, and insists on innovation-driven. Relying on the solid foundation of fine chemical industry, it focuses on
“chemical+” and “biology+” to form NHU featured R&D models with industrial clusters, and technology and industry platforms
interdependent. Not only can its products connect basic chemical raw materials in the upstream, but also extend to special
intermediates, nutrition, aroma chemicals, new polymer materials, and APIs in the downstream. It has formed a product network
structure to resist risks and respond to market emergencies.
During the reporting period, the development and construction of new projects and new products were carried out in an orderly
manner. In the nutrition sector, the production capacity of the methionine project released, achieving normal production and sales of
300,000 tons/year of products, and enhancing market competitiveness. The 180,000 tons/year liquid methionine (conversion) project
of the company and China Petroleum & Chemical Corporation was put into construction; 4,000 tons/year cystine project was in
stable production operation, the pilot project of glufosinate-ammonium project went smoothly . In the aroma chemicals sector,the
series of aldehyde projects, SA projects, and the first phase project of the spice industrial park were steadily promoted. In the new
polymer materials sector, the development of PPS new field applications was smooth, continuous detail optimization of EJ project
and promotion of large-scale production approval, the HA project products were smoothly produced and sold.
During the reporting period, the company's main product market prices were restored, and the company took multiple measures to
expand market share, accelerate the market development of new products and applications, strengthen sales team building, optimize
customer service, strengthen brand building, and achieve steady growth in the sales volume of its main products. At the same time,
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
the company achieved stable growth in performance by continuously innovating to reduce costs and increase efficiency, optimizing
production processes, resource allocation, energy consumption, and reasonably reducing operating costs.
During the reporting period, the Company’s main business and its business model remained unchanged.
II. Core competitiveness analysis
Since its establishment, the Company has focused on fine chemicals, and adhered to innovation-driven development. Through
decades of development, it has gradually formed an industrial system with nutrition, aroma chemicals, new polymer materials and
APIs as its main business. The market share of its main products is among the top tier in the world market. The Company’s core
competitiveness lies in its cooperate culture, R&D, management, talent and brand.
1. Corporate culture
Adhering to the enterprise objective of “creating wealth, employees’ success, and benefit the society”, core values of “new, harmony,
union”, business philosophy of “create wealth, balanced and sustainable”, and enterprise spirit of “realism, innovation, high-quality
and efficiency”, the Company innovates its operation, and continuously improves management, to ensure the steady development.
Under the guidance of the “teacher culture”, the Company pursues high-quality and sustainable development, creates spiritual wealth
and material wealth, provides a platform and opportunity for employees to develop and realize life value, and contributes to social
innovation development, green development, and shared development. During the reporting period, the Company deepened cultural
publicity and implementation, organized corporate culture lectures, strengthened the integration of corporate culture and
management,promoting the improvement of management capabilities.
2. R&D
The company adheres to the research and development concept of "demand-oriented, internal and external integration", and has
invested more than 5% of its operating income in research and development for many consecutive years. Through the establishment
of an innovative organizational structure at three levels of science, technology and application, the company has formed a three-level
innovative research and development system of scientific research, technology transformation and technology application, and
formed a research and development model with the General research Institute as the core, research branches, four production bases,
NHU-Zhejiang University joint research and development center, and external scientific research cooperation institutions. The
company cooperates closely with well-known research institutes and universities at home and abroad, such as Zhejiang University,
Chinese Academy of Sciences, Jiangnan University, China Agricultural University, Zhejiang University of Technology, and CysBio
Biotechnology Co., LTD., organizing and utilizing global basic science research resources to jointly carry out prospective and applied
research in chemistry. As the core of enterprise technology innovation, the research institute of the company has set up biomedical
laboratory, supercritical reaction laboratory, engineering equipment research center and other laboratories, equipped with 600M ultra-
low temperature probe nuclear magnetic resonance instrument and other world advanced scientific research equipment, master the
supercritical reaction, high vacuum distillation, high pressure hydrogenation continuous, peroxide and continuous crystallization and
other leading technologies at home and abroad. It has been rated as a national enterprise technology center, a national postdoctoral
research workstation, and a national model academician expert workstation.
3. Production management
The Company has always been adhering to the production strategy based on the principle of “production and sales coordination,
efficient operation, excellent quality, and cost leadership” and the HSE guideline of “safety first, green development, full
participation, and continuous improvement”. The Company takes planning as the goal, cost management as the main line, and
maximizing company benefits as the principle for the allocation of resources. Through oriented management and the cyclic operation
of planning, organization, implementation and control of the operation process, the Company continuously strengthens the level of
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
cost control. Meanwhile, it also improves the level of digitalization and intelligence. Through process reform, efficient management,
and intelligent operation, it promotes the continuous improvement of management efficiency. In addition, the Company is committed
to the development of green chemicals, vigorously promotes clean production, recyclable economy and 7S on-site management, and
adopts an environmental governance model that focuses on source control and final disposal. It is determined to take the road of
sustainable development.
4. Process and equipment
The Company values highly the effective combination of process and equipment. It has a process and equipment research institute,
and cooperates with famous engineering companies and scientific research institutes at home and abroad. Through joint innovation
and other methods, the Company improves the overall level of its process and equipment. The Company is dedicated to the R&D of
process and equipment towards larger scale, better airtightness, greater continuity, and higher level of automation, aiming to save
energy and reduce emissions, to improve productivity and product quality, to increase the intrinsic safety of production process, to
lower production costs, and to improve the level of automation. Currently, the Company has developed various efficient reaction and
separation platforms including continuous reaction, high vacuum distillation, continuous extraction, continuous crystallization,
efficient filtration, simulated moving bed separation, microchannel and micro-interface reaction with respect to specific processes,
and remarkable results have been achieved in continuous transformation of reaction, vapor-liquid-solid heterogeneous reaction, and
separation of air sensitive and heat sensitive materials through continuous improvement of large-size equipment.
5. Talent
The company has always adhered to the management concept of "standardized and efficient" and the employment concept of "both
virtue and talent, people and posts matching", and has shaped a pioneering and innovative, pragmatic, and efficient talent team and a
long-term stable and excellent management team with a high sense of responsibility, to promote the sustainable, healthy and rapid
development of the company. The company continues to strengthen the construction of talent supply chain, constantly improve the
talent training system, strengthen the training of "management talents, skilled talents, international talents, core technical talents, and
leadership talents", systematically train and reserve college students, introduce various professional talents, continue to promote the
training of reserve cadres such as the sailing class and the departure class, and promote the cross-sequence rotation training of the
font type. Promote the improvement of management and professional ability, and build a balanced talent structure.
6. Brand
The company adheres to the "integrity-based", and has always adhered to serving customers and creating industry value with
customers as the goal pursued by enterprises over the years. Through technological innovation, the company continues to provide
customers with safe and high-quality products and efficient and satisfactory services. After years of development and accumulation,
the company has won many honorary titles in the global fine chemical industry, such as one of China's top ten feed additive brands,
one of the country's large vitamin feed additive enterprises, and won the list of China's top 500 petroleum and chemical enterprises
(comprehensive) and China's top 100 basic chemical raw material manufacturing enterprises. Good market reputation has laid a
solid foundation for the healthy and long-term development of the company. In addition, the company has repeatedly won the top
30 best internal control in Zhejiang Province, the mainstream media listed companies "Best Investor relations Award", "Best Board
of Directors award" and other awards, widely favored by the market and investors. During the reporting period,the company was
rated as "Zhejiang Export Famous Brand", "Top 100 Private Enterprises in Shaoxing City 2024", and won the "15th Tianma Award
for Investor Relations of Chinese Listed Companies Tianma Award for Shareholder Return" and "Top 30 Zhejiang Listed
Companies Best Internal Control Award in 2023".
7. Globalization
Globally oriented, the company has set up overseas sales companies in Hong Kong, Singapore, Germany, Mexico, Brazil and other
regions or countries, and built overseas research institutes in Singapore to connect global innovation resources, providing
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
comprehensive solutions in the fields of nutrition and health, daily care, transportation, environmental protection, energy, and other
fields for customers in more than 100 countries and regions around the world. We will strive to optimize the allocation of resources at
home and abroad, help expand overseas markets and provide localized services, and continue to move toward "Global NHU".
8. Intelligent Manufacturing
The company establishes the "one headquarters and multiple bases" management and control mode, builds a large-middle desk
technical route with new and successful characteristics, and strengthens the awareness of data management and the management
platform support system by building the business center, data center and technology center, so as to realize the smooth
management process of the headquarters and production base, the same source of business data, and supports the efficient business
decision-making of enterprises. The company constantly promotes automation, informatization and digitalization, strives to create
a new and characteristic intelligent manufacturing system, build smart factories, promote intelligent operation management,
achieve efficient, flexible, punctual, lean production of high-quality products, better meet and serve customers, and shape new
advantages of industrial competition.
III. Main Business Analysis
Overview
Refer to “I. The Main Business of the Company during the Reporting Period”
Year-on-year changes in key financial data
Unit: RMB Yuan
The Current The Same Period of YoY growth
Item Reasons for Changes
Reporting Period the Previous Year rate
It was mainly due to the increase in
Operating revenue 9,844,712,214.36 7,418,514,576.09 32.70% volume and price of methionine and
vitamins during the reporting period.
It was mainly due to the increase in
Operating Cost 6,191,379,061.37 4,989,533,832.95 24.09% sales of major products during the
reporting period.
It was mainly due to the increase in
Sales Expenses 74,869,581.39 66,941,370.80 11.84% remuneration of sales staff during the
reporting period.
It was mainly due to the increase in
Administration personnel remuneration and loss on
295,567,957.53 244,646,451.17 20.81%
Expenses work stoppage of CLA and NBC
projects during the reporting period.
It was mainly due to the increase in
direct material inputs in research and
R&D Expense 480,961,724.14 416,575,391.59 15.46%
development projects during the
reporting period.
It was mainly due to the decrease in
Financial Expenses 71,051,340.26 -37,162,425.39 291.19% interest income and foreign exchange
gains during the reporting period.
It was mainly due to the increase in
Income Tax Expense 482,498,449.43 251,283,197.83 92.01% total profit during the reporting
period.
It was mainly due to the increase in
Net Cash Flows from
2,138,324,059.35 1,235,562,621.93 73.06% revenue and the rise in payment for
Operating Activities
goods during the reporting period..
It was mainly due to t lower
Net Cash Flows from
-745,685,689.42 -2,089,507,038.68 64.31% expenditure on acquisition of fixed
Investing Activities
assets during the reporting period
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
The Current The Same Period of YoY growth
Item Reasons for Changes
Reporting Period the Previous Year rate
It was mainly due to the decrease in
Net Cash Flows from
-1,070,263,034.77 -865,319,516.45 -23.68% bank loans during the reporting
Financing Activities
period.
It was mainly due to the increase in
payment for goods and the decrease
Net Increase in Cash
383,746,932.62 -1,643,950,329.76 123.34% in expenditure on the purchase and
and Cash Equivalents
construction of fixed assets during the
reporting period.
Significant changes in the composition of the Company’s profit or sources of profit during the reporting period
□ Applicable √ Not applicable
No significant changes in the composition of the Company’s profit or sources of profit during the reporting period.
Operating Income Structure
Unit: RMB Yuan
The Current Reporting Period The Same Period of the Previous Year
Items YoY growth rate
Amount % to total Amount % to total
Total 9,844,712,214.36 100% 7,418,514,576.09 100% 32.70%
By industry
Pharmaceutical
9,076,866,530.54 92.20% 6,771,211,341.41 91.27% 34.05%
chemicals
Others 767,845,683.82 7.80% 647,303,234.68 8.73% 18.62%
By product
Nutrition 6,680,260,846.33 67.86% 4,830,212,886.75 65.10% 38.30%
Aroma Chemicals 1,924,696,068.19 19.55% 1,631,864,728.45 22.00% 17.94%
New polymer
722,250,116.77 7.34% 578,308,624.04 7.80% 24.89%
materials
Others 517,505,183.07 5.25% 378,128,336.85 5.10% 36.86%
By region
Domestic sales 4,404,308,500.06 44.74% 3,557,426,385.63 47.95% 23.81%
Overseas sales 5,440,403,714.30 55.26% 3,861,088,190.46 52.05% 40.90%
By sales model
Direct sales 7,519,499,621.91 76.38% 5,896,114,550.44 79.48% 27.53%
Agent sales 2,325,212,592.45 23.62% 1,522,400,025.65 20.52% 52.73%
Industry, product, or regions accounting for more than 10% of the Company’s operating revenue or profit
√ Applicable □ Not applicable
Unit: RMB Yuan
Growth rate of
Growth rate of Growth rate of
Items Operating revenue Operating cost Gross rate operating
operating cost gross rate
revenue
By industry
Increased by
Pharmaceutical
9,076,866,530.54 5,615,207,021.00 38.14% 34.05% 23.86% 5.09 percentage
chemicals
points
By product
Nutrition 6,680,260,846.33 4,284,597,858.42 35.86% 38.30% 24.73% Increased by
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Growth rate of
Growth rate of Growth rate of
Items Operating revenue Operating cost Gross rate operating
operating cost gross rate
revenue
6.98 percentage
points
Aroma Decreased by
Chemicals 1,924,696,068.19 968,275,425.04 49.69% 17.94% 22.29% 1.79percentage
points
By region
Increased by
Domestic sales 4,404,308,500.06 2,828,623,386.54 35.78% 23.81% 8.66% 8.96 percentage
points
Overseas sales 5,440,403,714.30 3,362,755,674.83 38.19% 40.90% 40.92% stay level
When the statistical caliber of the Company’s main business data is adjusted in the reporting period, the Company’s main business
data in the most recent period should be subject to the one after the statistical caliber adjusted at the end of the reporting period.
□ Applicable √ Not applicable
IV. Non-main business analysis
√ Applicable □ Not Applicable
Unit: RMB Yuan
% to total profit Whether has
Items Amount Reason for balance
before tax continuity
It was mainly due to the transfer of equity
Investment income 47,554,398.65 1.76% interests in subsidiaries and profits realized No
by associates during the reporting period.
Gains on changes in fair
It was mainly due to changes in the fair
value
-4,445,860.49 -0.16% value of forward exchange products during No
(Losses are shown with
the reporting period.
a "- " sign)
It was mainly due to the receipt of
Other income 130,215,288.28 4.82% government grants during the reporting No
period.
It was mainly due to the increase in credit
Credit impairment loss impairment losses as a result of the increase
(Losses are shown with -98,041,802.36 -3.63% in accounts receivable as a result of the No
a "-" sign) increase in revenue during the reporting
period.
Impairment losses on It was mainly due to due to the impairment
assets of losses arising from the provision for
-10,175,642.76 -0.38% No
(Losses are shown with decline in value of inventories during the
a "-" sign) reporting period.
Non-operating revenue 2,373,545.46 0.09% It is mainly due to income from claims. No
Non-operating This was mainly due to losses on assets
3,797,633.81 0.14% No
expenditures scrapped during the reporting period.
14
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
V. Assets and liabilities analysis
1. Significant changes in asset composition
Unit: RMB Yuan
Jun. 30, 2024 Dec. 31, 2023 Remarks on
Percentage of
Items significant
% to total Amount % to total % to total change
changes
Cash and bank Increased by 0.63
4,901,773,897.05 12.23% 4,543,361,146.98 11.60%
balances percentage points
Accounts Increased by 1.76
3,246,276,963.34 8.10% 2,483,266,952.88 6.34%
receivable percentage points
Decreased by 0.33
Inventories 4,289,303,730.42 10.70% 4,318,878,875.34 11.03%
percentage points
Long-term
Increased by 0.37
equity 862,008,342.50 2.15% 697,145,200.08 1.78%
percentage points
investments
Decreased by 0.87
Fixed assets 22,034,912,795.44 54.96% 21,860,082,637.13 55.83%
percentage points
Construction in Decreased by 1.86
912,349,768.88 2.28% 1,621,882,507.56 4.14%
progress percentage points
Right-of-use Decreased by 0.01
5,658,877.20 0.01% 6,603,631.56 0.02%
assets percentage points
Short-term Increased by 0.77
1,576,838,512.31 3.93% 1,235,688,062.90 3.16%
borrowings percentage points
Contract Decreased by 0.21
174,322,469.67 0.43% 251,008,240.97 0.64%
liabilities percentage points
Long-term Decreased by 1.08
6,551,494,021.20 16.34% 6,821,643,194.58 17.42%
borrowings percentage points
Lease liabilities 4,299,247.61 0.01% 5,240,136.43 0.01% stay level
2. Major overseas assets
□ Applicable √ Not applicable
3. Assets and liabilities at fair value
√ Applicable □ Not Applicable
Unit: RMB Yuan
Accumulated Amount
Provision for
Gains on changes in purchased Amount sold
Opening impairment Other Closing
Items changes in fair fair value during the during the
balance made in the changes balance
value included in reporting reporting period
current period
equity period
Financial assets
1. Held-for-trading
financial assets
145,000,000.00 145,000,000.00 0.00
(derivative financial
assets excluded)
15
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Accumulated Amount
Provision for
Gains on changes in purchased Amount sold
Opening impairment Other Closing
Items changes in fair fair value during the during the
balance made in the changes balance
value included in reporting reporting period
current period
equity period
2. Derivative financial
28,056,050.95 -19,314,954.56 8,741,096.39
assets
Subtotal of financial
173,056,050.95 -19,314,954.56 145,000,000.00 8,741,096.39
assets
Total 173,056,050.95 -19,314,954.56 145,000,000.00 8,741,096.39
Financial liabilities 0.00 0.00 0.00 0.00
Whether the Company has significant changes in measurement attributes of main assets during the reporting period
□ Yes √ No
4. Restrictions on assets as of the end of the reporting period
Unit: RMB Yuan
Type of Restrictions
Items Book balance Carrying amount
restriction
55,388,324.90 55,388,324.90 pledged Banker's acceptance deposit
1,641,394.48 1,641,394.48 pledged Letter of Credit Deposit
3,830,850.00 3,830,850.00 pledged customs Deposit
Cash and bank 872,914.81 872,914.81 pledged Safety Construction deposit
balances 854,083.87 854,083.87 pledged Project works labor wage deposit
661,888.24 661,888.24 pledged Water deposit
8,183,592.83 8,183,592.83 pledged Letter of Guarantee Deposit
23,500.00 23,500.00 pledged ETC Deposit
Opening a pledge of banker's
Notes receivable 32,594,214.73 32,594,214.73 pledged
acceptances
Opening a pledge of banker's
Receivables financing 174,672,943.58 174,672,943.58 pledged
acceptances
94,874,505.48 77,901,231.39 Mortgage to a bank for the purpose of
Fixed assets mortgaged
obtaining a loan
10,042,866.95 10,042,866.95 Mortgage to a bank for the purpose of
Intangible assets mortgaged
obtaining a loan
Total 383,641,079.87 366,667,805.78
VI. Investment status analysis
1. Overall information
√ Applicable □ Not Applicable
Investments during the reporting period Investments of the preceding period
Percentage of change
(yuan) (yuan)
848,541,432.20 2,011,618,396.22 -57.82%
16
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2. Significant equity investments made during the reporting period
□ Applicable √ Not Applicable
3. Significant non-equity investments in progress during the reporting period
□ Applicable √ Not Applicable
4. Investments in financial assets
(1) investments in securities
□ Applicable √ Not Applicable
There is no investment in securities during the reporting period.
(2) Investments in derivatives
√ Applicable □ Not Applicable
1） Derivative investments for hedging purposes during the reporting period
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
Investment amount at
Accumulated Amount
Gains or losses Amount sold the end of the period
Types of Initial fair value purchased
Opening on changes in during the End of period as a percentage of the
Derivatives Investment changes during the
amount fair value for reporting amount company's net assets
Investments Amount recorded in reporting
the period period at the end of the
equity period
reporting period
Forward
195,647.20 195,647.20 -744.44 288,974.90 381,173.30 103,448.80 4.03%
contracts
Structured
Forward 0 0 299.85 85,443.50 26,536.50 58,907.00 2.30%
Contracts
Total 195,647.20 195,647.20 -444.59 374,418.40 407,709.80 162,355.80 6.33%
The Company accounts for the hedging business conducted in accordance with
description of the accounting policies and specific
the relevant provisions of the Ministry of Finance's AS 22 - Recognition and
principles of accounting for hedging operations during
AS 23 - Transfer of Financial Assets and AS 37 - Presentation of Financial
the reporting period, and whether there have been any
Instruments and its guidance. There were no significant changes in accounting
significant changes compared to the previous reporting
policies and specific principles of accounting compared with the previous
period
reporting period.
In order to reduce the impact of exchange rate fluctuations on the Company's
operating results, the Company carried out foreign exchange hedging business
in accordance with a certain percentage of its export business, with business
Description of actual profit or loss for the reporting
varieties mainly including forward exchange settlement and other foreign
period
exchange derivative products, all of which were within the expected scale of
sales business, and the actual gain on derivatives at the end of the reporting
period was 7.55 million yuan.
The Company carries out foreign exchange hedging business based on the
Description of the hedging effect principle of exchange rate risk neutrality. By carrying out foreign exchange
hedging business, the Company reduces the impact of exchange rate
17
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
fluctuation on the Company's operation and effectively controls the operation
risk.
Derivatives Investment Funding Self-funded.
Risk analysis and description of control measures for In order to prevent exchange rate risk, the Company and its subsidiaries have
derivative positions during the reporting period carried out derivative business and the Company and its subsidiaries have
(including but not limited to market risk, liquidity risk, strictly implemented the "Foreign Exchange Hedging Business Management
credit risk, operational risk, legal risk, etc.) Regulations".
Changes in market prices or product fair values of
invested derivatives during the reporting period, and the The floating loss on fair value of derivatives during the reporting period was
analysis of the fair value of derivatives should disclose 4.45 million Yuan. Changes in fair value are determined at the end of each
the specific methods used and the setting of relevant month based on quoted market prices from external financial institutions.
assumptions and parameters
Litigation involved (if applicable) No
Date of disclosure of board announcement for approval of
April 23, 2024
derivative investments (if any)
2） Investments in derivatives for speculative purposes during the reporting period
□ Applicable √ Not Applicable
The Company had no derivative investments for speculative purposes during the reporting period.
5. Use of raised funds
√ Applicable □ Not Applicable
(1) Overall use of raised funds
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
Total raised Accumulated Proportion Raised
Purposes of
Year Amount Accumulate funds with amount of raised of raised Total funds
Way of Total raised funds
of Net amount used in the d amount of changes in funds with funds with raised being
fund- amount not yet used
fund- raised current raised funds uses during changes in uses changes in funds not idle for
raising raised and the
raising period used the reporting during the uses to total yet used over two
whereabouts
period reporting period raised funds years
Transfer out
Private of permanent
Year
placement 486,707.55 486,707.55 16,001.17 527,880.92 0 0 0.00% 34,323.48 supplementary 0
2017
of shares working
capital
Total -- 486,707.55 486,707.55 16,001.17 527,880.92 0 0 0.00% 34,323.48 -- 0
Remarks on overall use of raised funds
The Company’s raised funds used in previous years amounted to5,118.80 million yuan, the net amount of interest on cash in bank received in previous
years less handling charges amounted to 105.69 million yuan, gains on financial products and structured deposits received in previous years amounted to
644.29 million yuan, and the net expenditure on financial products and structured deposits purchased in previous years amounted to 145.00 million yuan;
the raised funds actually used in 2024 amounted to 160.01 million yuan, the net amount of interest on cash in bank received in 2024 less handling charges
amounted to 4.12 million yuan, gains on financial products and structured deposits received in 2024 amounted to 0.86 million yuan, and the net recovery
from financial products and structured deposits purchased in 2024 amounted to 145.00 million yuan; the accumulated amount of the raised funds used
18
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
amounted to 5,278.81 million yuan, the accumulated net amount of interest on cash in bank received less handling charges amounted to 109.81 million
yuan, the accumulated amount of gains on financial products and structured deposits received amounted to 645.16 million yuan, and net expenditure on
financial products and structured deposits purchased amounted to 0 yuan, supplementary liquidity transfer out of 343.23 million yuan. As of June 30,
2024, the balance of raised funds was 0.00 yuan.
The Company held the Third Meeting of the Ninth Session of the Board of Directors and the Third Meeting of the Ninth Session of the Board of
Supervisors on 19 April 2024 and considered and passed the ''Proposal on the Closing of Fund Raising Investment Project and Permanent
Supplementation of Current Funds with Surplus Fund Raising'', and agreed to close the project and permanently supplement the current funds with
surplus fund raising investment project ''Project of 250,000 Tons of Methionine Per Annum'' for the purpose of enhancing the efficiency of the use of
surplus fund raising. 250,000 tonnes of methionine project" and permanently replenish the working capital with the surplus proceeds. As at 23 May 2024,
the balance of the special account for fund-raising of the Company has been transferred to the general settlement account of the Company, and the
relevant procedures for cancellation of the special account for fund-raising have been completed.
(2) Committed projects with raised funds
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
Whether
Whether Investment Date of Whether there was
Committed Total Total amount Accumulated Benefit
changed Input during progress as reaching the significant
investment projects committed after input as of the realized in
(including the reporting of the period designed expected changes in
and over-raised investment in adjustment period end the reporting
partial period end usable benefit is feasibility
funds whereabouts raised funds (1) (2) period
changed) (3)=(2)/(1) conditions reached of the
project
Committed investment projects
Methionine project Decemb
with annual output No 486,707.55 486,707.55 16,001.17 527,880.92 108.46% er 31, 93,119.92 Yes No
of 0.25 million tons 2023
Subtotal -- 486,707.55 486,707.55 16,001.17 527,880.92 -- -- 93,119.92 -- --
Over-raised funds whereabouts
No 0 0 0 0 0.00% 0
Total -- 486,707.55 486,707.55 16,001.17 527,880.92 -- -- 93,119.92 -- --
Pursuant to the results deliberated and approved by the eighth meeting of the eighth session of Board of
Directors and the seventh meeting of the eighth session of the Board of Supervisors dated October 27,
2021, the Company intended to adjust the date when the methionine project with annual output of 0.25
million tons reaches the designed usable conditions from the originally planned December 2021 to June
Conditions of and reasons for not meeting the planned schedule or 2023, with other contents remaining unchanged. Main reasons: Due to the impact of the macro economy,
estimated revenue (by specific project) the construction progress of the project’s infrastructure has been delayed, the procurement and delivery
time of some equipment and materials has been extended, the installation and commissioning of
equipment has been delayed, and the overall progress of the investment projects with raised funds has
slowed down, which jointly resulted in the postponement of delivery of the projects. Currently, The
project's 0.25million tons production line is now operating normally .
Remarks on significant changes in feasibility of projects None.
Amount, purposes and progress of use of over-raised funds Not Applicable
Changes in implementation locations of investment projects with raised
Not Applicable
funds
Adjustment on the implementation method of investment projects with
Not Applicable
raised funds
Preliminary investment and replacement of investment projects with Applicable
raised funds Preliminary investment amounted to 36.06 million yuan, and the replacement of raised funds is completed.
19
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Temporary replenishment of working capital with idle raised funds Not Applicable
Amount of and reasons for the balance of raised funds in the
Not Applicable
implementation of projects
Completed and put into production of the fund-raising projects to close and use the savings of the fund-
raising funds to permanently replenish the working capital, the fund-raising projects to close and use the
Uses and whereabouts of unused raised funds savings of the fund-raising funds to permanently replenish the working capital of the matter has been
considered and approved by the Ninth Session of the Board of Directors of the Company at its Third
Meeting and the Ninth Supervisory Committee of the Company at its Third Meeting.
Problems or other situations in the use and disclosure of raised funds None.
(3) Change of projects with raised funds
□ Applicable √ Not Applicable
There is no change of projects with raised funds during the reporting period.
VII. Sale of major assets and equities
1. Sale of major assets
□ Applicable √ Not Applicable
There is no sale of major assets during the reporting period.
2. Significant sale of equities
□ Applicable √ Not Applicable
VIII. Major entities controlled or invested by the Company
√ Applicable □ Not Applicable
Major subsidiaries and investees with influence on net profit of the Company over 10% (inclusive)
Unit: RMB 0,000 yuan
Registered Operating Operating
Entities Categories Major businesses Total assets Net assets Net profit
capital revenue profit
Shandong NHU
Production and 590 million
Pharmaceutical Co., Subsidiary 429,313.45 349,110.74 208,580.99 77,328.68 66,686.44
sales of fragrances yuan
Ltd.
Shandong NHU
Production and 1,100
Amino-acids Co., Subsidiary 1,092,450.99 964,066.91 320,550.76 139,781.76 118,095.83
sales of methionine million yuan
Ltd.
Production and
Shandong NHU 500 million
Subsidiary sales of feed 436,062.15 356,683.60 162,306.85 66,464.23 57,134.74
Vitamins Co., Ltd. yuan
additives
Details of acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not Applicable
Method for acquisition and disposal of Effect on the overall production,
Subsidiaries
subsidiaries during the reporting period operation and performance
Qionghai Boao Lidu Real Estate Co.,
shareholding transfer None.
Ltd.
Tianjin NHU Materials Technology Co.,
investment establishment Initial no significant impact .
Ltd.
20
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
IX. Structured entities controlled by the Company
□ Applicable √ Not Applicable
X. Risks and countermeasures
(1) Macroeconomic risks
The global economy is facing numerous uncertainties due to international trade frictions and possible intensification of geopolitical
conflicts. The company will accelerate the pace of globalization, speed up the global strategic layout, continuously improve the
construction of global innovation, sales, and information centers, establish a diversified innovation chain, supply chain, and customer
base, to promote the company's steady development.
(2) Industry and market competition risks
The Company is facing peer competition in both domestic and international markets. The development of new technologies by its
competitors will not only impact the market, but also challenge the Company’s market position in the industry. In the future, the
Company will continuously enhance its R&D and innovation capabilities, improve its technology, strengthen cost control, and
improve the competitiveness in the industry.
(3) Risks of raw material price fluctuation
As cost of raw materials accounts for a relatively high proportion of the total cost, the price fluctuations caused by the supply-
demand imbalance of raw material will have an impact on the Company’s profit. In the future, the Company will reduce the adverse
impact of raw material price fluctuations through market research and judgment, establishing strategic partnership with suppliers, and
improving the utilization rate of raw materials.
(4) Exchange rate and trade risks
The company provides products and services to customers in more than 100 countries and regions around the world. Political risks,
trade obstacles and exchange rate fluctuations caused by Sino-US trade frictions, international political and economic instability will
have a certain impact on the company's sales revenue and profitability. In the future, the company will take targeted measures to
actively respond to changes in the international market, strive to stabilize its international market position and actively explore new
economic growth points to maintain the steady growth of the company's performance.
(5) Risks of changes in environmental protection policies
With the increased social awareness of environmental protection, the promotion of the ecological civilization construction of the CPC
Central Committee, and the strategic goal of “carbon emission peak and carbon neutrality”, the requirements for energy conservation,
emission reduction, safety, and environmental protection in the chemical and pharmaceutical manufacturing industry in which the
Company operates are stricter than before. The Company will operate with higher standards and explore more environmentally
friendly ways of production to achieve sustainable development.
XI. Implementation of the "Quality-Return dual improvement" action plan
Whether the company disclosed the "quality-return dual improvement" action plan.
√Yes □ No
In order to implement the guiding ideology of "to activate the capital market and boost investor confidence" proposed by the
Political Bureau meeting of the CPC Central Committee and "to vigorously improve the quality and investment value of listed
21
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
companies, to take more effective and effective measures to stabilize the market and stabilize confidence", safeguard the rights and
interests of all shareholders, enhance investor confidence, and promote the long-term sustainable development of the company.
The Company published the "Announcement on the Action Plan of" Double Improvement of Quality and Return "(2024-002) on
designated information disclosure media and http://www.cninfo.com.cn on March 9, 2024, The main content of the action plan
includes four aspects: "Innovation-driven development, excellence and specialization", "Contributor-based sharing of the
company's development results", "deepening corporate governance and improving the standard operation level", and "compliance
information disclosure and sincere two-way communication".
During the reporting period, the company continued to actively return shareholders with relatively stable profit distribution
policies and cash dividend programs, allowing investors to share the results of the company's business development. In addition, in
order to boost market confidence, the controlling shareholder NHU Holding Group Co., Ltd. proposed the plan to increase its
holdings in 2023, with the amount for increasing the shares not less than 200 million yuan and not more than 300 million yuan,
and the implementation was completed in March 2024, with the purchase amount of 300 million yuan. During the reporting period,
the Company implemented the 2023 annual equity distribution based on 3,073,421,680 shares of the Company's existing total
share capital excluding 17,485,676 shares that have been repurchased, and distributed RMB4.50 in cash to all shareholders for
every 10 shares, totaling RMB1,383,039,756.00 (tax included).
The company will continue to develop functional chemicals through technology development and product innovation, enrich the
product line of the fine "chemical +" and "biological +" platform, do the best and specialize in the main fine chemical industry,
constantly improve the core competitiveness, and achieve steady and sustainable development of enterprises. In the future, under
the premise of ensuring normal operation, the company insists on providing investors with continuous and stable cash dividends,
and combines the company's operating status and business development goals to bring long-term investment returns to
shareholders. At the same time, the company continues to deepen corporate governance, improve the standard operation level, take
the initiative to convey value concepts to investors, understand investors' views and suggestions on the company's operation and
development, guide investors to take the initiative to pay attention to the company's announcement, news and other official
channel information, and constantly improve the two-way communication mechanism between the company and investors.
22
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section IV Corporate Governance
I. Annual general meeting and extraordinary general meetings held during the reporting period
1. General meeting of shareholders
Proportion of
Session Type of meetings participating Meeting date Disclosure date Resolutions
investors
19 proposals including the
Annual Work Report of the
Board of Directors of 2023
General meeting of Annual general meeting were deliberated and approved.
60.20% May 15, 2024 May 16, 2024
shareholders of 2023 of shareholders Please refer to Announcement
No. 2024-022 disclosed on
http://www.cninfo.com.cn for
details.
2. Preference shareholders with restored voting rights request to convene an extraordinary general meeting
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
The Company’s directors, supervisors and senior executives remains unchanged during the current reporting period,
please refer to the 2023 Annual Report for details.
III. Profit distribution and conversion of capital reserve into share capital
□ Applicable √ Not applicable
The Company will not distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve
during the current reporting period.
IV. Implementation of equity incentive plans, employee stock ownership plans or other
employee incentive programs
√ Applicable □ Not applicable
1. Equity incentive
Not applicable.
2. Implementation of employee stock ownership plans
√ Applicable □ Not applicable
All active employee stock ownership plans during the reporting period
Proportion to
Number of Total shares total share Sources of fund to
Scope of employees Changes
employees held capital of the implement the plan
Company
The forth phase of employee Legal
627 29,528,181 N/A 0.96%
stock ownership plan: directors, remuneration of
23
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Proportion to
Number of Total shares total share Sources of fund to
Scope of employees Changes
employees held capital of the implement the plan
Company
supervisors, senior executives the employees,
of the Company, and regular self-raised funds
employees of the Company and and other methods
its holding subsidiaries or permitted by laws
wholly-owned subsidiaries who and administrative
meet the criteria regulations
Shareholdings of directors, supervisors and senior executives in the employee stock ownership plan during the
reporting period
Number of shares
Number of shares Proportion to total
held at the beginning
Name Position held at the end of the share capital of the
of the reporting
reporting period Company
period
The fourth phase of employee
stock ownership plan:Hu Baifan,
Hu Baishan, Shi Guanqun, Wang
Xuewen, Wang Zhengjiang, Zhou Directors,
Guiyang, Shi Fangbin, Lyu supervisors and 8,664,835 8,664,835 0.28%
Guofeng, Yu Hongwei, Yan senior executives
Hongyue, Chen Zhaofeng, Wang
Xiaobi, Li Huafeng, Zhang
Liying
Changes in asset management agency during the reporting period
□ Applicable √ Not applicable
Changes in equity during the reporting period due to disposal of shares by holders
□ Applicable √ Not applicable
Exercise of shareholders’ rights during the reporting period
Pursuant to the Forth Phase of Employee Stock Ownership Plan (Draft), such plan voluntarily waives the voting
rights of holding shares in the general meeting of the Company, while shares acquired through the employee stock
ownership plan carry no voting rights in the general meeting. During the reporting period, the employee stock
ownership plan did not exercise the voting rights of holding shares in the general meeting, but still enjoyed the right
to profit distribution.
Other relevant situations and remarks of the employee stock ownership plan during the reporting period
□ Applicable √ Not applicable
Change in membership of the management committee of employee stock ownership plan
□ Applicable √ Not applicable
Financial impact of employee stock ownership plan on the Company in the reporting period and related accounting
treatments
□ Applicable √ Not applicable
24
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Termination of employee stock ownership plan during the reporting period
□ Applicable √ Not applicable
Other remarks
The number of shares held by directors, supervisors and senior managers in the employee stock ownership plan is
calculated according to the proportion of the holder's share in the total share of the employee stock ownership plan..
Other employee incentive programs
□ Applicable √ Not applicable
25
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section V Environmental and Social Responsibilities
I. Major environmental issues
Whether the Company and its subsidiaries belong to the key pollutant discharging units announced by
departments of environmental protection administration
√ Yes □ No
Environmental protection-related policies and industry standards
Interim Regulations on the Administration of Carbon Emission Trading (Decree No. 775 of the State Council of the People's
Republic of China)
Action Programme for Energy Conservation and Carbon Reduction 2024-2025 (Guo Fa [2024] No. 12)
Announcement on the publication of the Catalogue of Solid Waste Classification and Codes (Ministry of Ecology and
Environment No. 4 of 2024)
Nomenclature for Environmental Management of Chemical Substances (Ministry of Ecology and Environment 2024, No. 10)
Measures for the Administration of Sewage Discharge Permits (Decree No. 32 of the Ministry of Ecology and Environment)
Implementation Programme on the Establishment of Carbon Footprint Management System (Ministry of Ecology and
Environment, Environmental Climate [2024] No. 30)
Administrative permits for environmental protection
On 12 April 2024, Zhejiang NHU Pharmaceutical Co., Ltd. completed the re-application for the sewage discharge permit, and
completed the change on 1 July 2024, with the validity period until 11 April 2029.
On 17 May 2024, Zhejiang NHU Special Materials Co., Ltd. completed the re-application of sewage discharge permit, which is
valid until 13 May 2029.
On 28 May 2024, Shandong NHU Amino Acid Co., Ltd. completed the re-application for the sewage discharge permit, which is
valid until 27 May 2029.
On 18 June 2024, Heilongjiang NHU Bio-Technology Co., Ltd. completed the change of emission permit, which is valid until 17
May 2028.
On 22 June 2024, Shandong NHU Pharmaceutical Co., Ltd. completed the re-application for the sewage discharge permit, which
is valid until 20 June 2029.
26
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Industry emission standards and the specific circumstances of pollutant emissions involved in production
and operation activities
Executi
ve
Types of major Name of main Number Distributio pollutan
Total Total verified Excessive
and pollutants and Discharge of n of Discharge t
Name amount of amount of discharge
characteristic pollutant method discharge discharge concentration dischar
discharge discharge or not
pollutants characteristics1 outlets outlets ge
standar
d
water Sewer Plant 500m
The Company COD 1 155mg/L 17.35t ≤189.5t/a No
pollution connection area g/L
water Sewer Plant 35mg/
The Company NH3-N 1 0.9mg/L 0.11t ≤13.28t/a No
pollution connection area L
Atmospheric Filtered Plant 50mg/
The Company SO 1 19mg/m 0.49t ≤8.612 t/a No
pollutants discharge area m
Atmospheric Filtered Plant 50mg/
The Company NOx 1 33mg/m 0.33t ≤28t/a No
pollutants discharge area m
Shangyu NHU
water Sewer Plant 226.466mg/ 500m 242.995
Bio-Chem Co., COD 1 ≤999.65t/a No
pollution connection area L g/L t
Ltd.
Shangyu NHU
water Sewer Plant 35mg/ ≤69.976
Bio-Chem Co., NH3-N 1 6.634 mg/L 7.118t No
pollution connection area L t/a
Ltd.
Shangyu NHU
water Sewer Plant 18.348 70mg/ ≤139.951
Bio-Chem Co., TN 1 19.687t No
pollution connection area mg/L L t/a
Ltd.
Shangyu NHU
Atmospheric Filtered Plant 5.739 100m ≤57.6
Bio-Chem Co., VOC 1 0.525t No
pollutants discharge area mg/m g/m t/a
Ltd.
Shangyu NHU
Atmospheric Filtered Plant 8.987 100m ≤43.2
Bio-Chem Co., VOC 1 0.379t No
pollutants discharge area mg/m g/m t/a
Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 2.918 100m
Pharmaceutical VOC 1 0.135t ≤120.7t No
pollutants discharge area mg/m g/m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 2.812 100m
Pharmaceutical VOC 1 0.475t ≤1.98t No
pollutants discharge area mg/m g/m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 100m
Pharmaceutical VOC 1 0.7 mg/m 0.007t ≤0.288t No
pollutants discharge area g/m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 100m
Pharmaceutical VOC 1 1mg/m 0.002t ≤0.01t No
pollutants discharge area g/m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 0.387 100m
Pharmaceutical VOC 1 0.001t ≤0.032t No
pollutants discharge area mg/m g/m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 5.233 200m
Pharmaceutical NOx 1 0.242t ≤19.8t No
pollutants discharge area mg/m g/m
Co., Ltd.
Zhejiang NHU Atmospheric Filtered Plant 125.11 300m
NOx 1 21.112t ≤28.08t No
Pharmaceutical pollutants discharge area mg/m g/m
1 COD, NH3-N, SO , NOx, TN, VOC, PM and TP stand for chemical oxygen demand, ammonia nitrogen, sulfur dioxide, nitrogen
oxides, total nitrogen, volatile organic compound, particulate matter and total phosphorus, respectively.
27
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Executi
ve
Types of major Name of main Number Distributio pollutan
Total Total verified Excessive
and pollutants and Discharge of n of Discharge t
Name amount of amount of discharge
characteristic pollutant method discharge discharge concentration dischar
discharge discharge or not
pollutants characteristics1 outlets outlets ge
standar
d
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 14.949 150m
Pharmaceutical NOx 1 0.389t ≤8.44t No
pollutants discharge area mg/m g/m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 100m
Pharmaceutical SO 1 3.44 mg/m 0.159t ≤9.295t No
pollutants discharge area g/m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 14.62 100m
Pharmaceutical SO 1 2.467t ≤37.94t No
pollutants discharge area mg/m g/m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 4.927 50mg/
Pharmaceutical SO 1 0.128t ≤10.905t No
pollutants discharge area mg/m m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 5.175 20mg/
Pharmaceutical PM 1 0.239t ≤5.164t No
pollutants discharge area mg/m m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 3.375 30mg/
Pharmaceutical PM 1 0.569t ≤8.42t No
pollutants discharge area mg/m m
Co., Ltd.
Zhejiang NHU
Atmospheric Filtered Plant 5.839 20mg/
Pharmaceutical PM 1 0.152t ≤5.626t No
pollutants discharge area mg/m m
Co., Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 5
PM 1 1.35mg/m 0.149t ≤17.73 t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 20
PM 1 0.5mg/m 0.108t ≤17.73 t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 20
PM 1 2.8mg/m 0.031t ≤17.73 t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 35
SO 1 4.62mg/m 0.486t ≤67.92t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 50
SO 1 2 mg/m 0.278t ≤67.92t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 50
SO 1 3 mg/m 0.038t ≤67.92t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Zhejiang NHU Atmospheric Filtered Plant 23.44 50
NOx 1 3.192t ≤83.28 t/a No
Special pollutants discharge area mg/m mg/m
28
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Executi
ve
Types of major Name of main Number Distributio pollutan
Total Total verified Excessive
and pollutants and Discharge of n of Discharge t
Name amount of amount of discharge
characteristic pollutant method discharge discharge concentration dischar
discharge discharge or not
pollutants characteristics1 outlets outlets ge
standar
d
Materials Co.,
Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 100
NOx 1 13mg/m 2.25t ≤83.28 t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 150
NOx 1 32mg/m 0.27t ≤83.28 t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Zhejiang NHU
Special Atmospheric Filtered Plant 60
VOC 2 4.56 mg/m 0.2304t ≤69.72 t/a No
Materials Co., pollutants discharge area mg/m
Ltd.
Shandong NHU
Atmospheric Filtered Plant 10
Pharmaceutical PM 5 1.21 mg/m 0.29t ≤14.366t/a No
pollutants discharge area mg/m
Co., Ltd.
Shandong NHU
Atmospheric Filtered Plant 50
Pharmaceutical SO 4 2.70 mg/m 0.41t ≤4.006t/a No
pollutants discharge area mg/m
Co., Ltd.
Shandong NHU
Atmospheric Filtered Plant 48.35 100
Pharmaceutical NOx 5 8.46t ≤76.458t/a No
pollutants discharge area mg/m mg/m
Co., Ltd.
Shandong NHU
Atmospheric Filtered Plant 10.33 60
Pharmaceutical VOC 3 9.81t ≤154.36t/a No
pollutants discharge area mg/m mg/m
Co., Ltd.
Shandong NHU
water Sewer Plant 436.94 1000
Pharmaceutical COD 1 46.6t ≤719.42t/a No
pollution connection area mg/L mg/L
Co., Ltd.
Shandong NHU
water Sewer Plant 100m
Pharmaceutical NH3-N 1 6.47 mg/L 0.69t ≤71.94t/a No
pollution connection area g/L
Co., Ltd.
Shandong NHU
water Sewer Plant 120m
Pharmaceutical TN 1 34.86 mg//L 3.63t ≤86.33 t/a No
pollution connection area g/L
Co., Ltd.
Shandong NHU
Atmospheric Filtered Plant 11.23 50 ≤162.472
Amino-acids SO 7 10.83t No
pollutants discharge area mg/m mg/m t/a
Co., Ltd.
Shandong NHU
Atmospheric Filtered Plant 100
Amino-acids NOx 9 35.4 mg/m 69.69t ≤415.75 t/a No
pollutants discharge area mg/m
Co., Ltd.
Shandong NHU
Atmospheric Filtered Plant 10
Amino-acids PM 12 1.16 mg/m 4.32t ≤29.314 t/a No
pollutants discharge area mg/m
Co., Ltd.
Shandong NHU
Atmospheric Filtered Plant 16.58 60mg ≤381.846
Amino-acids VOC 6 25.57t No
pollutants discharge area mg/m /m t/a
Co., Ltd.
Shandong NHU water Sewer Plant 1000 ≤1073.97
COD 1 715 mg/L 204.55t No
Amino-acids pollution connection area mg/L t/a
29
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Executi
ve
Types of major Name of main Number Distributio pollutan
Total Total verified Excessive
and pollutants and Discharge of n of Discharge t
Name amount of amount of discharge
characteristic pollutant method discharge discharge concentration dischar
discharge discharge or not
pollutants characteristics1 outlets outlets ge
standar
d
Co., Ltd.
Shandong NHU
water Sewer Plant 100 ≤107.397
Amino-acids NH3-N 1 8.83 mg/L 2.71t No
pollution connection area mg/L t/a
Co., Ltd.
Shandong NHU
water Sewer Plant 120 ≤128.874
Amino-acids TN 1 68.8 mg/L 13.21t No
pollution connection area mg/L t/a
Co., Ltd.
Shandong NHU
Atmospheric Filtered Plant 60
Vitamins Co., VOC 4 8.66 mg/m 2.69t ≤85.67 t/a No
pollutants discharge area mg/m
Ltd.
Shandong NHU
Atmospheric Filtered Plant 50
Vitamins Co., SO 3 5.19 mg/m 1.52t ≤21.14 t/a No
pollutants discharge area mg/m
Ltd.
Shandong NHU 100
Atmospheric Filtered Plant
Vitamins Co., NOx 4 52mg/m mg/ 24.98t ≤65.27 t/a No
pollutants discharge area
Ltd. m
Shandong NHU
Atmospheric Filtered Plant 10
Vitamins Co., PM 5 3.54 mg/m 0.73t ≤4.8 t/a No
pollutants discharge area mg/m
Ltd.
Shandong NHU
water Sewer Plant 2000
Vitamins Co., COD 1 226mg/L 18.23t ≤1376.56t/a No
pollution connection area mg/L
Ltd.
Shandong NHU
water Sewer Plant 100
Vitamins Co., NH3-N 1 3.44mg/L 0.23t ≤68.61 t/a No
pollution connection area mg/L
Ltd.
Shandong NHU
water Sewer Plant 120
Vitamins Co., TN 1 56.1mg/L 2.18t ≤93.21 t/a No
pollution connection area mg/L
Ltd.
Shandong NHU
Fine
Atmospheric Filtered Plant 60
ChemicalScienc VOC 2 17mg/m 0.98t ≤18.031 t/a No
pollutants discharge area mg/m
e and
Technology Co.
Shandong NHU
Fine
Atmospheric Filtered Plant 100
ChemicalScienc NOx 2 31mg/m 3.19t ≤37.61 t/a No
pollutants discharge area mg/m
e and
Technology Co.
Shandong NHU
Fine
Atmospheric Filtered Plant 10
ChemicalScienc PM 1 3.2mg/m 0.296t ≤5.544 t/a No
pollutants discharge area mg/m
e and
Technology Co.
Heilongjiang
NHU Atmospheric Filtered Plant 30
PM 1 14.39mg/m 3.26t ≤19.224t No
Biotechnology pollutants discharge area mg/m
Co., Ltd.
Heilongjiang Atmospheric PM Filtered 1 Plant 11.53mg/m 30 0.00480 ≤.68t No
30
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Executi
ve
Types of major Name of main Number Distributio pollutan
Total Total verified Excessive
and pollutants and Discharge of n of Discharge t
Name amount of amount of discharge
characteristic pollutant method discharge discharge concentration dischar
discharge discharge or not
pollutants characteristics1 outlets outlets ge
standar
d
NHU pollutants discharge area mg/m 7t
Biotechnology
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 13.14 30 0.01836
PM 1 ≤0.55t/a No
Biotechnology pollutants discharge area mg/m mg/m 6t
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 30
PM 1 7.06 mg/m 0.177t ≤3.6t/a No
Biotechnology pollutants discharge area mg/m
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 50.44 200
NOx 1 12.08t ≤128.16 t/a No
Biotechnology pollutants discharge area mg/m mg/m
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 84.22 200
SO 1 18.4t ≤128.16 t/a No
Biotechnology pollutants discharge area mg/m mg/m
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 150
VOC 1 10.5 mg/m 2.43t ≤96.12 t/a No
Biotechnology pollutants discharge area mg/m
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 15.98 150 0.00757
VOC 1 ≤3.38t/a No
Biotechnology pollutants discharge area mg/m mg/m 9t
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 14.51 150 0.02488
VOC 1 ≤2.77t/a No
Biotechnology pollutants discharge area mg/m mg/m 1t
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 150 0.02488
VOC 1 9.7 mg/m ≤2.80t/a No
Biotechnology pollutants discharge area mg/m 1t
Co., Ltd.
Heilongjiang
NHU Atmospheric Filtered Plant 13.56 150
VOC 1 0.339t ≤17.98 t/a No
Biotechnology pollutants discharge area mg/m mg/m
Co., Ltd.
Heilongjiang
NHU water Sewer Plant 300m
COD 1 116.51mg/L 303.69t ≤2089.8 t/a No
Biotechnology pollution connection area g/L
Co., Ltd.
Heilongjiang
NHU water Sewer Plant 35mg/
NH3-N 1 1.95mg/L 4.26t ≤243.81 t/a No
Biotechnology pollution connection area L
Co., Ltd.
31
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Construction and operation of pollution prevention and control facilities
The Company has established the environmental protection concept of green development: 1. Introducing the concept of green
chemistry, developing and producing products that are more environment-friendly. 2. Transferring from support-orientation to
responsibility-orientation, to conduct source reduction, process control and end-of-pipe treatment properly. 3. Pursuing reduction,
recycling and harmlessness to create ecological factories, and realize the harmonious development of man and nature.
Wastewater treatment: The company has a perfect sewage treatment system; there are production sewage, domestic sewage, initial
rainwater, accident water and other wastewater collection system, so as to achieve clean sewage diversion, rain and sewage
diversion. The waste water pool is sealed with a cover, and all the waste gases are effectively collected and finally incinerated,
which effectively reduces the emission of waste gases.
Exhaust gas treatment: The company adopts self-developed nitrogen sealing system to effectively reduce the exhaust gas emission;
according to the composition and nature of different exhaust gases, it adopts different pre-treatment technologies; meanwhile, the
company introduces foreign advanced exhaust gas treatment devices to strengthen the capacity of exhaust gas treatment. Exhaust
gas leakage detection and repair (LDAR) is carried out regularly every year; the company continues to implement the construction
of odourless factories, comprehensively carry out exhaust gas treatment, and solve the problem of odour at the factory boundary;
in 2024, it will comprehensively investigate the point of unorganised leakage and incorporate it into the management and control,
and carry out comprehensive supervision and emission reduction of unorganised exhaust gases.
Solid Waste Disposal: The company has a standardised hazardous waste storage warehouse and hazardous waste incineration
device, and the company basically disposes of hazardous waste on its own. The company basically disposes of hazardous wastes
by itself. The outsourced hazardous wastes are transferred in strict accordance with the requirements of ‘Management Measures
for the Transfer of Hazardous Wastes’, and entrusted to qualified units.
Noise prevention and control: low-noise equipment is selected, and the noise reduction measures of foundation damping are
adopted for the equipment that does not need to be fixed; in addition to foundation damping for the air compressor, blower and
various pumps, a sound insulation cover is also added around the noise source for sound insulation.
Emergency management: installing exhaust gas online monitor around the plant boundary, real-time monitoring of the plant
environment; introducing VOC online monitor, real-time monitoring of the emission of exhaust gas data, test data uploaded to the
monitoring platform; wastewater, one enterprise, one pipe online monitoring of wastewater emission indexes real-time monitoring,
normal uploading to the Environmental Protection Bureau; the introduction of first-class pressure leakage plugging technology in
China, will be the pipelines, valves, flanges, tanks appearing abnormal The introduction of domestic first-class pressure leakage
plugging technology reduces the abnormal leakage of pipelines, valves, flanges and tanks to the lowest amount, thus reducing the
impact on the environment due to massive leakage.
Environmental emergency response plan
On 8 April 2024, The Company re-filed the emergency response plan for environmental emergencies.
On 1 February 2024, Shandong NHU Pharmaceutical Co., Ltd. re-filed the emergency response plan for environmental
emergencies.
Investment in environmental treatment and protection and payment of environmental protection
tax
The Company's environmental protection treatment and investment in the first half of 2024 amounted to RMB 281.29 million
and paid environmental protection tax of RMB 1.01 million.
32
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Environmental self-monitoring program
The company has good pollutant emission monitoring and management ability and can timely inform the environmental protection
administrative department and the public of the monitoring information. The company has developed relevant self-test plans,
which cover the indicators of the company's organized waste gas, unorganized waste gas and groundwater. At the same time, a
third-party testing company is entrusted to carry out regular monitoring.
The company implements environmental information disclosure in strict accordance with the national, provincial, municipal and
county requirements on enterprise environmental information disclosure. Each subsidiary has made enterprise environmental
protection information public on platforms such as the environmental information management system of provincial and municipal
key pollutant discharge units.
Administrative penalties for environmental problems during the reporting period
Rectification
Reasons for Results of Impact on the production and
Name Violations measures of the
punishment punishment operation of the Company
Company
N/A N/A N/A N/A N/A N/A
Other environmental information that should be disclosed
None.
Measures taken to reduce carbon dioxide emissions during the reporting period and their effects
√ Applicable □ Not applicable
In the research and development of new products, the carbon emission of 10,000 yuan output value is taken as an important
indicator for the process route and environmental feasibility assessment of new products. The green development technology is
applied in the research and development of new products to improve the atomic utilization rate and reduce the carbon emission
generated by the consumption of raw materials from the source. （The photovoltaic power generation project of Shandong NHU
Vitamins Co., Ltd.）
Other information related to environmental protection
None.
II. Social responsibilities
NHU has always adhered to long-termism, focusing on the strategic main channels of "Chemistry +" and
"Biology +", strengthening innovation leadership, practicing green development, and continuously taking on
responsibility. The company continues to exert efforts in the research and development of innovative green
products, promoting green bio-manufacturing, and the layout of renewable energy. The company has increased
its attention to ESG issues, initiated ESG research, and continuously improved ESG performance, winning the
silver medal in the Ecovadis assessment, highlighting the company's outstanding performance in actively taking
responsibility for the environment, society, and stakeholders. The company has always integrated the concept of
sustainable development into the entire process of production operations and daily management, focusing on the
coordination between the industrial chain and the circular use of resources, to meet the human desire for a better
life and the needs of social sustainable development in high-quality development.
We continuously deepen research on energy conservation and carbon reduction, improve the energy
management system, promote process optimization and production line upgrades, and transitions towards large-
scale, automated, and continuous production. This has led to an increase in the energy efficiency of products
and equipment, with a reduction in energy consumption per ten thousand yuan of output value by 7% in the first
half of the year. The company has accelerated the layout of renewable energy, achieved the first green certificate
33
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
transaction, and promoted the development and utilization of renewable energy. The company has completed
the environmental carbon footprint accounting for three products: Vitamin C, Vitamin E, and Astaxanthin,
taking substantial steps in carbon reduction efforts.
We will continue to focus on key business areas such as production and operation, and HSE (Health, Safety,
and Environment), building a dual intelligent system of smart operations and smart factories. This system will
be based on the automation of processes and production to gradually improve operational efficiency. The
intelligent amino acid factory in Shandong has been fully built, achieving full process integration from
production to supply, sales, and finance, and creating a model workshop for large-scale chemical industry. The
HSE digital platform has been fully promoted and constructed in various bases, effectively realizing risk
identification, monitoring, and early warning. The construction of the smart operation system and the middle
platform is progressing steadily and orderly. By empowering with digital technology, the company continues to
enhance its refined management capabilities, achieving a deep integration of digitalization, intelligence, and
greening, and empowering the enterprise's green and low-carbon development.
We earnestly practice the corporate mission of "benefiting society". While promoting the development of
the enterprise, we actively assume social responsibility as a corporate citizen and actively carries out public
welfare projects such as blood donation, poverty alleviation, and educational funding. The company has
established an industry cooperation and communication platform, hosting the 2024 NHU Human Nutrition
High-Quality Development Forum and special seminars on aquaculture and poultry nutrition, to jointly explore
innovative technologies and the path to sustainable development in the field of nutrition and health. During the
reporting period, the company was awarded the first place on the "Independent Innovation" list of Chinese
brand value, one of the top 100 leading enterprises in Zhejiang Province for private enterprise social
responsibility, and the Tianma Award for investor relations and shareholder reporting, among other honors.
34
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section VI Significant Events
I. Commitment performance fulfilled during the reporting period and not fulfilled as of the
end of the reporting period by parties related to commitments including the actual controller
of the Company, shareholders, related parties, acquirers and the Company
√ Applicable □ Not Applicable
Commitments Parties making Types of Content of commitments Time of Term of
Performance
commitments commitments commitment commitment
Commitments to None None None None None None
shares reform
Commitments
made in reports
on acquisition None None None None None None
and changes in
equity
Commitments
made in asset None None None None None None
restructuring
NHU Holding
Group Co., Ltd. and
Commitments The signing of “Commitment on
Zhang Pingyi, Shi
on horizontal No Engagement in Horizontal
Cheng, Yuan
competition, Competition” and commitments June 25,
Yizhong, Hu Long-term Strictly
related party on no engagement in business
Baishan, Shi 2004 performed
transactions and activities result in horizontal
Guanqun, Wang
occupation of competition with operations of the
Xuewen, Cui
funds Company after listing
Xinrong, Wang
Xulin
The Company’s directors, senior
executives committed to perform
their duties faithfully and
diligently to safeguard the
legitimate rights and interests of
the Company and shareholders,
and make the following
commitments in accordance with
the relevant provisions of the
Commitments CSRC for the full performance of
made in IPO or measures on filling immediate
refinancing returns: 1. not to transfer benefits
to other entities or individuals
Hu Baifan; Hu
without compensation or on unfair
Baishan; Guanqun;
terms, and not to use other means
Wang Xuewen; Cui January 12, Long-term Strictly
to harm benefits of the Company;
Xinrong; Wang 2017 performed
2. to impose restrictions on duty
Zhengjiang; Zhou
consumption of member of the
Guiyang
Board of Directors and senior
executives; 3. not to use assets of
the Company to engage in
investment or consumption
activities not related to duty
performance; 4. to link
remuneration system formulated
by the Board of Directors or
remuneration committee to the
implementation of measures on
filling immediate returns; 5. to
link vesting conditions of equity
incentive to be published in the
35
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
future to the implementation of
measures on filling immediate
returns.
Not to interfere in the Company’s
business and management
Hu Baifan; NHU activities in excess of authority;
January 12, Long-term Strictly
Holding Group Co., not to encroach on benefits of the
2017 performed
Ltd. Company; to perform measures
on filling immediate returns in a
practical way.
Commitments to None None None None None None
equity incentive
Other
commitments to
small and None None None None None None
medium-sized
shareholders of
the Company
During the period of increasing
the shares of the company and
within the legal period, NHU
NHU Holding Share increase October 27, Fulfillment
Other Holding Group Co., Ltd. will not 6 months
commitments Group Co., Ltd. commitment reduce the shares of the company 2023 completed
and will complete the increase
plan within the above
implementation period.
Whether commitments are performed on time Yes
If commitment performance is not fulfilled on time, please explain detailed reasons for it and the next
Not applicable
work plans.
II. Non-operating occupation of funds over listed companies by controlling shareholders and
other related parties
□ Applicable √ Not Applicable
There is no non-operating occupation of funds over listed companies by controlling shareholders and other related
parties during the reporting period.
III. Illegal external guarantees
□ Applicable √ Not Applicable
There is no illegal external guarantee during the reporting period.
IV、Engagement and dismissal of accounting firms
Whether the semi-annual report has been audited or not
□ Yes √ No
The semi-annual report has not been audited.
V. Statements by the Board of Directors, the Board of Supervisors on the “Modified Auditor’s
Report” issued by the accounting firm during the reporting period
□ Applicable √ Not Applicable
36
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
VI. Explanations by the Board of Directors on the “Modified Auditor’s Report” issued by the
accounting firm last year
□ Applicable √ Not Applicable
VII. Matters related to bankruptcy and restructuring
□ Applicable √ Not Applicable
There are no matters related to bankruptcy and restructuring during the reporting period.
VIII. Lawsuits
Significant lawsuits and arbitration
□ Applicable √ Not Applicable
There is no significant lawsuit and arbitration during the reporting period.
Other lawsuits
□ Applicable √ Not Applicable
IX. Penalties and rectification
□ Applicable √ Not Applicable
There is no penalties and rectification during the reporting period.
X. Integrity of the Company, its controlling shareholders and the actual controller
□ Applicable √ Not Applicable
XI. Significant related party transactions
1. Related party transactions relevant to daily operations
□ Applicable √ Not Applicable
There is no related party transaction relevant to daily operations during the reporting period.
2. Related party transactions in purchase or sale of assets or equities
□ Applicable √ Not Applicable
There is no related party transaction in purchase or sale of assets or equities during the reporting period.
3. Related party transactions in joint external investments
□ Applicable √ Not Applicable
There is no related party transaction in joint external investments during the reporting period.
4. Related party creditor’s rights and debts
□ Applicable √ Not Applicable
There is no related creditor’s rights or debts during the reporting period.
5. Transactions with related financial companies
□ Applicable √ Not Applicable
There is no business of deposits, loans, credit granting or other financial businesses between the Company and its
related financial companies.
37
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
6. Transactions between financial companies controlled by the Company and the Company’s related
parties
□ Applicable √ Not Applicable
There is no business of deposits, loans, credit granting or other financial businesses between financial companies
controlled by the Company and the Company’s related parties.
7. Other significant related party transactions
□ Applicable √ Not Applicable
There is no other material connected transactions during the reporting period.
XV. Significant contracts and performance
1. Matters of trusteeship, contracting and leases
(1) Trusteeship
□ Applicable √ Not Applicable
There is no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not Applicable
There is no contracting during the reporting period.
(3) Leases
□ Applicable √ Not Applicable
There is no lease during the reporting period.
2. Significant guarantees
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
External guarantees by the Company and its subsidiaries to third parties (guarantees to subsidiaries are excluded)
Announce Count
ment date er Whether Whether
Actual Actual Collater
of Amount Types of guara Period of the guarantee
Guaranteed parties commencement amount als (if
disclosure guaranteed guarantees ntees guarantee guarantee for related
date guaranteed any)
of amount (if is mature parties
guaranteed any)
No
Total amount of guarantees approved during the Total amount actually guaranteed during the
0 0
reporting period (A1) reporting period (A2)
Total amount of guarantees approved at the end Total amount actually guaranteed at the end of
0 0
of the reporting period (A3) the reporting period (A4)
38
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
The Company’s guarantees to subsidiaries
Announce Count
ment date er Whether Whether
Actual Actual Collater
of Amount Types of guara Period of the guarantee
Guaranteed parties commencement amount als (if
disclosure guaranteed guarantees ntees guarantee guarantee for related
date guaranteed any)
of amount (if is mature parties
guaranteed any)
Shandong NHU
Joint and 3/24/2021
Fine
several -
ChemicalScience 5/22/2020 50,000 3/24/2021 50,000 No No
liability 12/25/202
and Technology 5
guarantee
Co.
Joint and 8/26/2021
Heilongjiang NHU
several -
Biotechnology Co., 4/22/2021 40,000 8/26/2021 37,000 No No
liability 12/21/202
Ltd. 5
guarantee
Joint and 12/16/202
Zhejiang NHU
several 1
Imports & Exports 5/20/2023 25,000 6/16/2023 10,000 Yes No
liability -
Co., Ltd. 6/15/2024
guarantee
Joint and 12/16/202
Xinchang NHU several 1-
4/22/2021 40,000 12/16/2021 29,000 12/25/202 No No
Vitamins Co. liability
6
guarantee
Joint and
6/12/2023
NHU (Hong Kong) several
5/20/2023 100,000 6/12/2023 15.97 - Yes No
Trading Co., Ltd. liability 3/1/2024
guarantee
Joint and
8/4/2023
NHU (Hong Kong) several
5/20/2023 100,000 8/4/2023 97.92 - Yes No
Trading Co., Ltd. liability 5/1/2024
guarantee
Joint and
9/26/2023
NHU (Hong Kong) several
5/20/2023 100,000 9/26/2023 26.85 - Yes No
Trading Co., Ltd. liability 6/1/2024
guarantee
Joint and
12/5/2023
NHU (Hong Kong) several
5/20/2023 100,000 12/5/2023 4.03 - No No
Trading Co., Ltd. liability 9/1/2024
guarantee
Joint and
3/12/2024
NHU (Hong Kong) several
5/20/2023 100,000 3/12/2024 130.68 - No No
Trading Co., Ltd. liability 12/1/2024
guarantee
Joint and
NHU (Hong Kong) several 6/5/2024-
5/16/2024 50,000 6/5/2024 105.48 2/20/2025 No No
Trading Co., Ltd. liability
guarantee
Joint and
Zhejiang NHU 6/24/2022
several
Pharmaceutical 5/11/2022 60,000 6/24/2022 55,000 - No No
liability 6/23/2027
Co., Ltd
guarantee
Joint and 10/14/202
Xinchang NHU several 2-
5/11/2022 20,000 10/14/2022 18,000 10/14/202 No No
Vitamins Co. liability
7
guarantee
NHU (Hong Kong) 5/20/2023 100,000 6/12/2023 7,839.48 Joint and 6/12/2023 Yes No
39
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Trading Co., Ltd. several -
liability 6/12/2024
guarantee
Joint and
6/12/2024
NHU (Hong Kong) several
5/16/2024 50,000 6/12/2024 7,839.48 - No No
Trading Co., Ltd. liability 6/12/2025
guarantee
Shandong NHU
Joint and
Fine 6/6/2023
several
ChemicalScience 5/20/2023 58,600 6/6/2023 58,600 - No No
liability 3/29/2028
and Technology
guarantee
Co.
Joint and
11/8/2023
NHU (Hong Kong) several
5/20/2023 100,000 11/20/2023 57,014.40 - No No
Trading Co., Ltd. liability 11/8/2026
guarantee
Joint and
Zhejiang NHU 6/24/2024
several
Imports & Exports 5/16/2024 25,000 6/24/2024 15,000 - No No
liability 6/23/2025
Co., Ltd.
guarantee
Total amount of guarantees approved for Total amount actually guaranteed for
175,000 23,075.64
subsidiaries during the reporting period (B1) subsidiaries during the reporting period (B2)
Total amount of guarantees approved for Total amount actually guaranteed for
subsidiaries at the end of the reporting period 479,749.11 subsidiaries at the end of the reporting period 327,694.07
(B3) (B4)
Guarantees by subsidiaries to subsidiaries
Announce Count
ment date er Whether Whether
Actual Amount Collater
of Amount Types of guara Period of the guarantee
Guaranteed parties commencement actually als (if
disclosure guaranteed guarantees ntee guarantee guarantee for related
date guaranteed any)
of amount (if is mature parties
guaranteed any)
No
Total amount of guarantees approved for Total amount actually guaranteed for sub-
0 0
subsidiaries during the reporting period (C1) sidiaries during the reporting period (C2)
Total amount of guarantees approved for Total amount actually guaranteed for
subsidiaries at the end of the reporting period 0 subsidiaries at the end of the reporting period 0
(C3) (C4)
Total amount guaranteed by the Company (namely sum of the above three items)
Total amount of guarantees approved during the Total amount actually guaranteed during the
175,000 23,075.64
reporting period (A1+B1+C1) reporting period (A2+B2+C2)
Total amount of guarantees approved at the end Total amount actually guaranteed at the end of
479,749.11 327,694.07
of the reporting period (A3+B3+C3) the reporting period (A4+B4+C4)
Proportion of the amount actually guaranteed (A4+B4+C4) to net assets of the
12.77%
Company
Including:
Balance of guarantees for shareholders, the actual controller and its related parties
272,694.07
(D)
Balance of debt guarantee directly or indirectly for guaranteed parties with debt to
272,694.07
asset ratio exceeding 70% (E)
The amount of the total amount guaranteed exceeding 50% of net assets (F) None
Total amount guaranteed of three items above (D+E+F) None
40
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Specific description of the use of composite guarantees:
None
3. Entrusted financing
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
Overdue and Impairment amount accrued for
Source of Unexpired
Types Entrusted amount not recovered financial products overdue and
entrusted funds balance
amount not recovered
Bank financial products Raised funds 14,500.00 0.00 0.00 0.00
Total 14,500.00 0.00 0.00 0.00
High-risk entrusted financial products with individual significant amount or low security and poor liquidity
□ Applicable √ Not Applicable
When the principal of entrusted financial products is expected to be irrevocable or there are other conditions result in impairment of
entrusted financial products
□ Applicable √ Not Applicable
4. Other significant contracts
□ Applicable √ Not Applicable
There is no other significant contract during the reporting period.
XIII. Other significant events
√ Applicable □ Not Applicable
I Progress of Investment Project with Raised Funds
With the approval of [2017] No. 1684 document of China Securities Regulatory Commission, the company's lead underwriter,
CSC Securities Co., Ltd., privately issued 175 million common shares (A shares) to specific objects at an issue price of RMB
28.00/share, raising a total of RMB 4,900 million. After deducting the underwriting and recommendation fees of RMB 30 million
yuan (including tax), the raised funds amounted to RMB 4,870 million, which was remitted to the raised funds supervision account
of the company by the lead underwriter, CSC Securities Co., Ltd. on December 7, 2017. In addition, after deducting lawyer fees,
audit fees, capital verification fees and other issuance expenses of RMB 4.62 million (excluding tax), and considering the
deductible VAT input tax of RMB 1.70 million of underwriting fees and recommendation fees deducted by the lead underwriter,
the net amount of funds raised was RMB 4,867.08 million. The availability of the above raised funds has been verified by Tianjian
Certified Public Accountants (special general partnership), who issued the capital verification report ([2017] No. 503).
The company convened the third meeting of the ninth board of directors and the third meeting of the ninth supervisory board on
April 19, 2024. The "Proposal on the Completion of the Fundraising Investment Project and the Permanent Supplement of the
Surplus Raised Funds to Working Capital" was reviewed and approved. In order to improve the efficiency of the use of surplus
raised funds, it was agreed to terminate the "Annual Production of 250,000 Tons of Methionine Project," which was funded by the
non-public issuance of shares in 2017 and to permanently supplement working capital with the surplus raised funds. During the
reporting period, the balance of the company's raised funds special account has been transferred to the company's general
settlement account, and the relevant cancellation procedures of the raised funds special account have been completed. The relevant
41
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
fund raising supervision agreements signed by the Company and its subsidiaries with the sponsor institutions and the commercial
banks depositing the raised funds shall terminate accordingly. For details, please refer to Announcement on the Completion of the
Cancellation of the Special Account for raised funds (2024-024) published by the Company on designated information disclosure
media and http://www.cninfo.com.cn.
II Progress of the controlling shareholder in increasing the company's shares
Based on the confidence of the company's future sustainable development, and the recognition of the company's value, to enhance
investor confidence, the company's controlling shareholder NHU Holding Group Co., Ltd. plans to increase its shares of the
Company in the next six months from October 26, 2023, through the means permitted by the trading system of Shenzhen Stock
Exchange (including but not limited to centralized bidding, block trading, etc.). The amount of shares to be increased shall not be
less than RMB 200 million and shall not exceed RMB 300 million. There is no price range for this plan, and the plan will be
gradually implemented according to the volatility of the company's stock price and the overall trend of the capital market. As of
March 15, 2024, NHU Holding Company has accumulated 17,869,906 shares of the Company, accounting for 0.58% of the total
share capital of the Company, and accumulated additional holdings of 299,656,526.16 yuan (excluding transaction fees). For
details, please refer to Announcement on the results of the implementation of the controlling shareholder's plan to increase the
company's shares (2024-003) published by the Company on designated information disclosure media and
http://www.cninfo.com.cn.
XIV. Significant events of subsidiaries of the Company
√ Applicable □ Not Applicable
In order to further optimise the Company's assets, improve the industrial structure, focus on the main business of fine chemicals,
and improve the profit level and asset quality. The Company sold 100% equity interest of its wholly-owned subsidiary, Qionghai
Boao Lido Real Estate Co., Ltd. to Xinhecheng Holding Group Limited at a price of RMB82.791 million. For details, please refer
to the Announcement on Disposal of Assets and Connected Transaction (2024-026) published on the designated information
disclosure media and Juchao Information Website (http://www.cninfo.com.cn) on June 19,2024.
42
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section VII Movements in Shares and Information about
Shareholders
I. Movements in shares
1. Details
Unit: Share
Before Movements（+/-） After
Items Issue of Reserve
Quantity Bonus Others Subtotal Quantity % to total
% to total new transferred
shares
shares to shares
I. Restricted
36,409,752 1.18% 36,409,752 1.18%
shares
1. Held by
other domestic 36,409,752 1.18% 36,409,752 1.18%
parties
Including:
Held by domestic 36,409,752 1.18% 36,409,752 1.18%
natural persons
II. Unrestricted
3,054,497,604 98.82% 3,054,497,604 98.82%
shares
1. RMB
3,054,497,604 98.82% 3,054,497,604 98.82%
ordinary shares
III. Total 3,090,907,356 100.00% 3,090,907,356 100.00%
Reason for movements
□ Applicable √ Not Applicable
Approval on movements in shares
□ Applicable √ Not Applicable
Transfer of shares
□ Applicable √ Not Applicable
Progress of the Share Repurchase Plan
□ Applicable √ Not Applicable
Implementation progress of shareholding reduction for shares repurchased through centralized bidding
□ Applicable √ Not applicable
Effect of movements in shares on financial indicators of preceding year and preceding period such as basic EPS and
diluted EPS, net assets per share attributable to shareholders of ordinary shares
□ Applicable √ Not applicable
Other contents the Company considered as necessary or securities regulatory institutions required disclosure
43
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
□ Applicable √ Not applicable
2. Movement in restricted shares
□ Applicable √ Not applicable
II. Issuance and listing of securities
□ Applicable √ Not Applicable
III.Number of shareholders of the Company and their shareholding conditions
Unit: Share
Total shareholders of preferred shares with
Total shareholders of ordinary shares
86,381 voting rights restored at the end of the 0
at the end of the reporting period
reporting period
Shareholders with holding proportion over 5% or the top 10 shareholders with largest holding proportions
(Excluding lending shares through refinancing)
Quantity of Shares pledged,
ordinary Movements marked or frozen
Holding Quantity of Quantity of
Nature of shares at the during the
Shareholders proporti restricted unrestricted
shareholders end of the reporting
on shares shares Condition Quantity
reporting period
period
Domestic
NHU Holding Group non-state-
49.80% 1,539,232,431 2,823,080 0 1,539,232,431 N/A 0
Co., Ltd. owned legal
person
Hong Kong Securities
Overseas
Clearing Company 4.19% 129,400,780 29,917,783 0 129,400,780 N/A 0
legal person
Limited
Shanghai Chongyang
Strategic Investment
Co., Ltd. － Others 1.75% 54,072,200 0 0 54,072,200 N/A 0
Chongyang Strategic
Huizhi Fund
National Social
Security Fund Others 1.33% 41,000,091 -9 0 41,000,091 N/A 0
No.503Portfolio
The Company－
Employee stock Others 0.96% 29,528,181 0 0 29,528,181 N/A 0
ownership plan phase
IV
China Construction
Bank Corporation -E
Fund Shanghai and
Shenzhen 300 Others 0.90% 27,971,477 4,971,800 0 27,971,477 N/A 0
Medical and Health
Trading Open-end
Index Fund
China Industrial and
Commercial Bank
Corporation-
Huatai-Burry CSI 300 Others 0.70% 21,707,021 10,124,862 0 21,707,021 N/A 0
exchange-traded
index Securities
Investment Fund
Shanghai Chongyang
Strategic Investment
Others 0.53% 16,248,559 0 0 16,248,559 N/A 0
Co., Ltd. －
Chongyang Strategic
44
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Yingzhi Fund
National Social
Security Fund No.117 Others 0.52% 16,019,748 -2,000,000 0 16,019,748 N/A 0
Portfolio
China Construction
Bank Corporation - E
Fund Shanghai and
Shenzhen 300 Others 0.47% 14,639,831 10,344,600 0 14,639,831 N/A 0
Medical and Health
Trading Open-end
Index Fund
Strategic investors or ordinary legal persons that Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Huizhi
became one of the top 10 shareholders due to the Fund became one of the top 10 shareholders with largest holding proportions due to its
allotment of new shares participation in private placement of shares in 2017.
Remarks on relationships or concerted action The Company does not know whether other shareholders have relationships and whether
between the top 10 shareholders with largest they are persons acting in concert as defined in Administration of the Takeover of Listed
holding proportions Companies Procedures.
Remarks on proxy voting and waiver of voting None
right of the above shareholders
Special remarks on top 10 shareholders with The Company’s special securities account for repurchase is attributable to the top 10
special repurchase accounts shareholders, who however did not participate in the presentation of such balances.
Top 10 shareholders with unrestricted shares
(Excluding shares lent through refinancing and executive lock up shares)
Quantity of unrestricted shares at the end of Category of shares
Shareholders
the reporting period Category Quantity
NHU Holding Group Co., Ltd. 1,539,232,431 RMB ordinary shares 1,539,232,431
Hong Kong Securities Clearing Company RMB ordinary shares
129,400,780 129,400,780
Limited
Shanghai Chongyang Strategic Investment Co., RMB ordinary shares
54,072,200 54,072,200
Ltd. － Chongyang Strategic Huizhi Fund
National Social Security Fund No.503Portfolio 41,000,091 RMB ordinary shares 41,000,091
The Company－Employee stock ownership plan RMB ordinary shares
29,528,181 29,528,181
phase IV
China Construction Bank Corporation -E Fund
Shanghai and Shenzhen 300 Medical and Health 27,971,477 RMB ordinary shares 27,971,477
Trading Open-end Index Fund
China Industrial and Commercial Bank
Corporation- RMB ordinary shares
21,707,021 21,707,021
Huatai-Burry CSI 300 exchange-traded index
Securities Investment Fund
Shanghai Chongyang Strategic Investment Co., RMB ordinary shares
16,248,559 16,248,559
Ltd. － Chongyang Strategic Yingzhi Fund
National Social Security Fund No.117 Portfolio 16,019,748 RMB ordinary shares 16,019,748
China Construction Bank Corporation - E Fund
Shanghai and Shenzhen 300 Medical and Health 14,639,831 RMB ordinary shares 14,639,831
Trading Open-end Index Fund
Remarks on relationships or concerted action
between the top 10 shareholders with unrestricted The Company does not know whether other shareholders have relationships and whether
shares, and between the top 10 shareholders with they are persons acting in concert as defined in Administration of the Takeover of Listed
unrestricted shares and top 10 shareholders with Companies Procedures.
largest holding proportions.
Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Huizhi
Fund holds 54,072,127 shares through client account of collateral securities for margin
Remarks on top 10 shareholders of ordinary
trading of Guotai Junan Securities Co., Ltd.; Shanghai Chongyang Strategic Investment
shares participating in securities margin trading
Co., Ltd. － Chongyang Strategic Yingzhi Fund holds 16,248,559 shares through client
account of collateral securities for margin trading of Citic Securities Co., Ltd.
Note: The Company’s special securities account for repurchase is attributable to the top 10 shareholders with
unrestricted shares, who however did not participate in the presentation of such balances.
45
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
46
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders with unlimited shares in circulation
participating in the lending of shares in the transfer and financing business.
√Applicable □Not applicable
Unit: Share
Shareholders with holding proportion over 5% , the top 10 shareholders and the top 10 shareholders' participation in securities lending
and borrowing transactions
Shares borrowed for
Holdings in ordinary Shares borrowed for
securities lending at the Holdings in ordinary
account and credit securities lending at the
beginning of the period account and credit account
account at the beginning end of the period and have
Shareholder name and have not yet been at the end of the period
of the period not yet been returned
(full name) returned
Ratio to Ratio to Ratio to Ratio to
Total Total Total Total
total share total share total share total share
quantity quantity quantity quantity
capital capital capital capital
China Construction
Bank Corporation -
E Fund Shanghai
and Shenzhen 300 22,999,677 0.74% 252,800 0.01% 27,971,477 0.90% 0 0.00%
Medical and Health
Trading Open-end
Index Fund
China Industrial and
Commercial Bank
Corporation-
Huatai-Burry CSI
11,582,159 0.37% 35,600 0.00% 21,707,021 0.70% 0 0.00%
300 exchange-
traded index
Securities
Investment Fund
The top 10 shareholders and the top 10 holders of unlimited shares have experienced changes due to participating in
the lending of shares in the transfer and financing business compared to the previous period.
□ Applicable √Not applicable
Did the top 10 shareholders of ordinary shares and the top 10 shareholders of unrestricted ordinary shares perform
agreed repurchase transaction during the reporting period?
□ Yes √ No
The top 10 shareholders of ordinary shares and the top 10 shareholders of unrestricted ordinary shares did not perform
agreed repurchase transaction during the reporting period.
IV. Movement in shares of directors, supervisors and senior executives
□ Applicable √ Not applicable
The shares of the company’s directors, supervisors and senior executives remains unchanged during the current
reporting period, please refer to the 2023 Annual Report for details.
V. Changes of holding shareholders or controlling shareholders
Changes of holding shareholders during the reporting period
□ Applicable √ Not applicable
The Company has no changes of holding shareholders during the reporting period.
Changes of actual controller within the reporting period
□ Applicable √ Not applicable
The Company has no changes in actual controller within the reporting period.
47
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section VIII Preferred Shares
□ Applicable √ Not applicable
The Company has no preferred shares during the reporting period.
48
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section IX Bonds
□ Applicable √ Not applicable
49
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section X Financial Report
I. Audit Reports
Has the semi-annual report been audited
□ Yes √ No
The Company’s semi-annual report has not been audited.
II. Financial Statements
The monetary unit of the financial statements is Renminbi (RMB) Yuan.
1. Consolidated balance sheet
Prepared by Zhejiang NHU Co., Ltd.
June 30, 2024
Unit: RMB Yuan
Items June 30, 2024 January 1, 2024
Current assets:
Cash and bank balances 4,901,773,897.05 4,543,361,146.98
Settlement funds
Loans to other banks
Held-for-trading financial assets 8,741,096.39 173,056,050.95
Derivative financial assets
Notes receivable 190,699,104.28 116,125,267.70
Accounts receivable 3,246,276,963.34 2,483,266,952.88
Receivables financing 537,845,382.40 331,634,090.61
Advances paid 167,536,465.65 209,274,602.05
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 184,691,433.46 142,060,705.67
Including: Interest receivable
Dividend receivable
Financial assets under reverse repo
Inventories 4,289,303,730.42 4,318,878,875.34
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
50
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2024 January 1, 2024
Other current assets 18,335,275.71 68,232,745.03
Total current assets 13,545,203,348.70 12,385,890,437.21
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 862,008,342.50 697,145,200.08
Other equity instrument investments 21,998,147.55 22,998,147.55
Other non-current financial assets
Investment property
Fixed assets 22,034,912,795.44 21,860,082,637.13
Construction in progress 912,349,768.88 1,621,882,507.56
Productive biological assets
Oil & gas assets
Right-of-use assets 5,658,877.20 6,603,631.56
Intangible assets 2,521,574,569.05 2,407,560,753.82
Including: Data resources
Development expenditures
Including: Data resources
Goodwill 3,622,704.97 3,622,704.97
Long-term prepayments 11,228,786.75 11,697,961.72
Deferred tax assets 4,843,514.77 650,079.18
Other non-current assets 170,894,040.19 138,112,803.89
Total non-current assets 26,549,091,547.30 26,770,356,427.46
Total assets 40,094,294,896.00 39,156,246,864.67
Current liabilities:
Short-term borrowings 1,576,838,512.31 1,235,688,062.90
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 307,717,300.33 349,347,472.36
Accounts payable 1,746,004,140.97 1,930,958,598.05
Advances received
Contract liabilities 174,322,469.67 251,008,240.97
Financial liabilities under repo
Absorbing deposit and interbank
deposit
51
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2024 January 1, 2024
Deposit for agency security
transaction
Deposit for agency security
underwriting
Employee benefits payable 284,307,639.90 418,273,203.88
Taxes and rates payable 339,696,046.49 301,794,080.40
Other payables 167,570,834.36 53,671,773.90
Including: Interest payable
Dividend payable
Handling fee and commission
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
1,850,286,515.25 1,564,392,458.67
year
Other current liabilities 18,929,551.34 17,260,124.76
Total current liabilities 6,465,673,010.62 6,122,394,015.89
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 6,551,494,021.20 6,821,643,194.58
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 4,299,247.61 5,240,136.43
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 1,048,201,721.31 1,065,586,274.49
Deferred tax liabilities 241,604,864.92 221,675,090.41
Other non-current liabilities
Total non-current liabilities 7,845,599,855.04 8,114,144,695.91
Total liabilities 14,311,272,865.66 14,236,538,711.80
Equity:
Share capital 3,090,907,356.00 3,090,907,356.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 3,613,345,485.13 3,613,345,485.13
Less: Treasury shares 500,059,711.25 500,059,711.25
Other comprehensive income 106,065,011.81 103,920,732.85
52
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2024 January 1, 2024
Special reserve 91,027,587.10 60,860,818.76
Surplus reserve 1,545,453,678.00 1,545,453,678.00
General risk reserve
Undistributed profit 17,711,555,848.46 16,890,233,961.50
Total equity attributable to the parent
25,658,295,255.25 24,804,662,320.99
company
Non-controlling interest 124,726,775.09 115,045,831.88
Total equity 25,783,022,030.34 24,919,708,152.87
Total liabilities & equity 40,094,294,896.00 39,156,246,864.67
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
2. Parent company balance sheet
Unit: RMB Yuan
Items June 30, 2024 January 1, 2024
Current assets:
Cash and bank balances 3,074,454,540.77 2,944,073,209.24
Held-for-trading financial assets
Derivative financial assets
Notes receivable 188,647,102.48 116,657,645.60
Accounts receivable 709,940,277.16 626,644,050.39
Receivables financing
Advances paid 6,560,737.51 4,143,777.83
Other receivables 2,077,641,921.09 2,908,050,463.81
Including: Interest receivable
Dividend receivable
Inventories 342,337,638.09 295,102,427.23
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 4,009,196.74 1,925,459.39
Total current assets 6,403,591,413.84 6,896,597,033.49
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 11,392,951,139.09 10,678,236,147.42
Other equity instrument investments 71,998,147.55 72,998,147.55
Other non-current financial assets
53
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2024 January 1, 2024
Investment property
Fixed assets 576,306,595.49 612,700,666.98
Construction in progress 112,955,029.44 71,331,975.01
Productive biological assets
Oil & gas assets
Right-of-use assets 2,550,257.08 2,630,791.48
Intangible assets 277,028,936.86 145,613,180.34
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term prepayments 716,686.40 1,165,411.93
Deferred tax assets 6,933,439.73 10,794,527.34
Other non-current assets 29,178,888.64 29,165,952.28
Total non-current assets 12,470,619,120.28 11,624,636,800.33
Total assets 18,874,210,534.12 18,521,233,833.82
Current liabilities:
Short-term borrowings 452,458,527.77 496,760,409.72
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 122,822,203.69 109,519,196.45
Accounts payable 99,773,414.34 115,590,089.62
Advances received
Contract liabilities 4,332,288.12 3,836,737.57
Employee benefits payable 44,039,075.11 74,330,678.60
Taxes and rates payable 2,209,257.45 13,608,334.34
Other payables 129,075,526.83 16,876,789.87
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one
1,242,203,001.42 687,277,786.06
year
Other current liabilities 545,953.63 494,804.24
Total current liabilities 2,097,459,248.36 1,518,294,826.47
Non-current liabilities:
Long-term borrowings 3,914,123,266.66 4,350,488,292.95
Bonds payable
Including: Preferred shares
Perpetual bonds
54
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2024 January 1, 2024
Lease liabilities 2,542,661.88 2,715,619.54
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 13,711,087.08 11,067,751.34
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 3,930,377,015.62 4,364,271,663.83
Total liabilities 6,027,836,263.98 5,882,566,490.30
Equity:
Share capital 3,090,907,356.00 3,090,907,356.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 3,353,675,803.74 3,353,675,803.74
Less: Treasury shares 500,059,711.25 500,059,711.25
Other comprehensive income 506,954.43 506,954.43
Special reserve 15,010,114.75 10,583,344.97
Surplus reserve 1,545,453,678.00 1,545,453,678.00
Undistributed profit 5,340,880,074.47 5,137,599,917.63
Total equity 12,846,374,270.14 12,638,667,343.52
Total liabilities & equity 18,874,210,534.12 18,521,233,833.82
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
3. Consolidated income statement
Unit: RMB Yuan
Items 2024 Semi-Annual 2023 Semi-Annual
I. Total operating revenue 9,844,712,214.36 7,418,514,576.09
Including: Operating revenue 9,844,712,214.36 7,418,514,576.09
Interest income
Premiums earned
Revenue from handling charges and commission
II. Total operating cost 7,207,812,239.51 5,746,931,719.68
Including: Operating cost 6,191,379,061.37 4,989,533,832.95
Interest expenses
Handling charges and commission expenditures
Surrender value
Net payment of insurance claims
55
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2024 Semi-Annual 2023 Semi-Annual
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 93,982,574.82 66,397,098.56
Selling expenses 74,869,581.39 66,941,370.80
Administrative expenses 295,567,957.53 244,646,451.17
R&D expenses 480,961,724.14 416,575,391.59
Financial expenses 71,051,340.26 -37,162,425.39
Including: Interest expenses 143,713,361.26 163,988,612.81
Interest income 67,461,973.58 78,203,398.06
Add: Other income 130,215,288.28 102,847,223.45
Investment income (or less: losses) 47,554,398.65 43,899,900.63
Including: Investment income from associates
25,496,597.50 34,855,314.27
and joint ventures
Gains from derecognition of financial
assets at amortized cost
Gains on foreign exchange (or less: losses)
Gains on net exposure to hedging risk (or less:
losses)
Gains on changes in fair value (or less: losses) -4,445,860.49 -11,268,469.70
Credit impairment loss -98,041,802.36 6,389,579.21
Assets impairment loss -10,175,642.76 -81,296,758.10
Gains on asset disposal (or less: losses) -1,128,442.54 13,545,778.16
III. Operating profit (or less: losses) 2,700,877,913.63 1,745,700,110.06
Add: Non-operating revenue 2,373,545.46 3,576,842.57
Less: Non-operating expenditures 3,797,633.81 1,619,001.38
IV. Profit before tax (or less: total loss) 2,699,453,825.28 1,747,657,951.25
Less: Income tax 482,498,449.43 251,283,197.83
V. Net profit (or less: net loss) 2,216,955,375.85 1,496,374,753.42
(I) Categorized by the continuity of operations
1. Net profit from continuing operations (or less: net
2,216,955,375.85 1,496,374,753.42
loss)
2. Net profit from discontinued operations (or less: net
loss)
(II) Categorized by the portion of equity ownership
1. Net profit attributable to owners of parent company 2,204,361,642.96 1,483,229,236.96
2. Net profit attributable to non-controlling
12,593,732.89 13,145,516.46
shareholders
VI. Other comprehensive income after tax -768,510.72 36,723,815.69
Items attributable to the owners of the parent company 2,144,278.96 29,652,134.01
(I) Not to be reclassified subsequently to profit or loss
1. Changes in remeasurement on the net defined
56
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2024 Semi-Annual 2023 Semi-Annual
benefit plan
2. Items under equity method that will not be
reclassified to profit or loss
3. Changes in fair value of other equity instrument
investments
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss 2,144,278.96 29,652,134.01
1. Items under equity method that may be
reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial
assets into other comprehensive income
4. Provision for credit impairment of other debt
investments
5. Cash flow hedging reserve
6. Translation reserve 2,144,278.96 29,652,134.01
7. Others
Items attributable to non-controlling shareholders -2,912,789.68 7,071,681.68
VII. Total comprehensive income 2,216,186,865.13 1,533,098,569.11
Items attributable to the owners of the parent company 2,206,505,921.92 1,512,881,370.97
Items attributable to non-controlling shareholders 9,680,943.21 20,217,198.14
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 0.71 0.48
(II) Diluted EPS (yuan per share) 0.71 0.48
Net profit realized by the combined party in business combination under common control before the business combination in the
current period was 0.00 yuan, and net profit realized by the combined party in the previous period was 0.00 yuan.
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
4. Parent company income statement
Unit: RMB Yuan
Items 2024 Semi-Annual 2023 Semi-Annual
I. Operating revenue 1,678,611,503.49 1,467,649,891.79
Less: Operating cost 1,478,674,881.01 1,286,663,766.90
Taxes and surcharges 1,801,342.29 5,272,107.65
Selling expenses 17,887,398.02 14,547,584.98
Administrative expenses 86,384,680.36 71,695,788.38
R&D expenses 104,631,263.58 105,896,011.00
Financial expenses 36,830,555.80 26,721,645.73
Including: Interest expenses 82,789,341.19 82,410,752.78
Interest income 47,586,057.68 55,944,010.36
Add: Other income 18,076,084.86 20,950,696.09
57
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2024 Semi-Annual 2023 Semi-Annual
Investment income (or less: losses) 1,586,250,480.59 1,460,083,688.60
Including: Investment income from
13,076,861.11 17,189,195.23
associates and joint ventures
Gains from derecognition of financial
assets at amortized cost
Gains on net exposure to hedging risk (or less:
losses)
Gains on changes in fair value (or less: losses)
Credit impairment loss 39,523,400.83 -76,822,623.15
Assets impairment loss -5,439,745.02 -1,816,889.00
Gains on asset disposal (or less: losses) -451,622.70 12,144,624.20
II. Operating profit (or less: losses) 1,590,359,980.99 1,371,392,483.89
Add: Non-operating revenue 555,050.49 1,629,246.59
Less: Non-operating expenditures 733,814.28 70,000.00
III. Profit before tax (or less: total loss) 1,590,181,217.20 1,372,951,730.48
Less: Income tax 3,861,304.36 -9,060,433.16
IV. Net profit (or less: net loss) 1,586,319,912.84 1,382,012,163.64
(I) Net profit from continuing operations (or less: net
1,586,319,912.84 1,382,012,163.64
loss)
(II) Net profit from discontinued operations (or less:
net loss)
V. Other comprehensive income after tax
(I) Not to be reclassified subsequently to profit or
loss
1. Changes in remeasurement on the net defined
benefit plan
2. Items under equity method that will not be
reclassified to profit or loss
3. Changes in fair value of other equity
instrument investments
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or
loss
1. Items under equity method that may be
reclassified to profit or loss
2. Changes in fair value of other debt
investments
3. Profit or loss from reclassification of
financial assets into other comprehensive income
4. Provision for credit impairment of other debt
investments
5. Cash flow hedging reserve
6. Translation reserve
7. Others
VI. Total comprehensive income 1,586,319,912.84 1,382,012,163.64
58
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2024 Semi-Annual 2023 Semi-Annual
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
5. Consolidated cash flow statement
Unit: RMB Yuan
Items 2024 Semi-Annual 2023 Semi-Annual
I. Cash flows from operating activities:
Cash receipts from sale of goods or
8,604,890,987.69 7,691,504,205.43
rendering of services
Net increase of client deposit and
interbank deposit
Net increase of central bank loans
Net increase of loans from other
financial institutions
Cash receipts from original insurance
contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit
and investment
Cash receipts from interest, handling
charges and commission
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security
transaction
Receipts of tax refund 366,540,460.23 623,052,104.04
Other cash receipts related to
153,666,344.64 211,777,249.15
operating activities
Subtotal of cash inflows from operating
9,125,097,792.56 8,526,333,558.62
activities
Cash payments for goods purchased
4,967,376,966.76 5,567,275,176.60
and services received
Net increase of loans and advances to
clients
Net increase of central bank deposit
and interbank deposit
Cash payments for insurance
indemnities of original insurance
contracts
Net increase of loans to others
Cash payments for interest, handling
charges and commission
Cash payments for policy bonus
Cash paid to and on behalf of
1,135,778,052.77 1,092,533,915.84
employees
59
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2024 Semi-Annual 2023 Semi-Annual
Cash payments for taxes and rates 682,887,168.82 447,327,818.25
Other cash payments related to
200,731,544.86 183,634,026.00
operating activities
Subtotal of cash outflows from operating
6,986,773,733.21 7,290,770,936.69
activities
Net cash flows from operating activities 2,138,324,059.35 1,235,562,621.93
II. Cash flows from investing activities:
Cash receipts from withdrawal of
1,000,000.00
investments
Cash receipts from investment income 16,184,824.86 30,163,695.90
Net cash receipts from the disposal of
fixed assets, intangible assets and other 160,774.19 140,680.08
long-term assets
Net cash receipts from the disposal of
80,930,328.36
subsidiaries & other business units
Other cash receipts related to investing
145,000,000.00 740,938,810.13
activities
Subtotal of cash inflows from investing
243,275,927.41 771,243,186.11
activities
Cash payments for the acquisition of
fixed assets, intangible assets and other 833,286,216.66 2,373,242,224.79
long-term assets
Cash payments for investments 155,675,400.17 237,508,000.00
Net increase of pledged borrowings
Net cash payments for the acquisition
of subsidiaries & other business units
Other cash payments related to
250,000,000.00
investing activities
Subtotal of cash outflows from investing
988,961,616.83 2,860,750,224.79
activities
Net cash flows from investing activities -745,685,689.42 -2,089,507,038.68
III. Cash flows from financing activities:
Cash receipts from absorbing
1,927,407.95
investments
Including: Cash received by
subsidiaries from non-controlling 1,927,407.95
shareholders as investments
Cash receipts from borrowings 2,383,504,630.93 3,618,534,438.57
Other cash receipts related to
financing activities
Subtotal of cash inflows from financing
2,385,432,038.88 3,618,534,438.57
activities
Cash payments for the repayment of
1,931,710,157.62 2,772,078,719.75
borrowings
Cash payments for distribution of
dividends or profits and for interest 1,523,177,553.77 1,710,367,614.94
expenses
Including: Cash paid by subsidiaries to
non-controlling shareholders as dividend
or profit
Other cash payments related to 807,362.26 1,407,620.33
60
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2024 Semi-Annual 2023 Semi-Annual
financing activities
Subtotal of cash outflows from financing
3,455,695,073.65 4,483,853,955.02
activities
Net cash flows from financing activities -1,070,263,034.77 -865,319,516.45
IV. Effect of foreign exchange rate
61,371,597.46 75,313,603.44
changes on cash & cash equivalents
V. Net increase in cash and cash
383,746,932.62 -1,643,950,329.76
equivalents
Add: Opening balance of cash and
4,446,570,415.30 5,151,841,931.86
cash equivalents
VI. Closing balance of cash and cash
4,830,317,347.92 3,507,891,602.10
equivalents
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
6. Parent company cash flow statement
Unit: RMB Yuan
Items 2024 Semi-Annual 2023 Semi-Annual
I. Cash flows from operating activities:
Cash receipts from sale of goods and
1,562,609,239.27 1,621,333,193.57
rendering of services
Receipts of tax refund 52,439,904.66 52,307,259.26
Other cash receipts related to 70,576,046.68
82,446,555.85
operating activities
Subtotal of cash inflows from operating 1,685,625,190.61
1,756,087,008.68
activities
Cash payments for goods purchased
1,542,197,500.63 1,423,009,942.09
and services received
Cash paid to and on behalf of
215,665,834.99 199,303,567.32
employees
Cash payments for taxes and rates 10,889,249.62 10,958,178.21
Other cash payments related to
86,102,146.54 62,126,529.37
operating activities
Subtotal of cash outflows from operating
1,854,854,731.78 1,695,398,216.99
activities
Net cash flows from operating activities -169,229,541.17 60,688,791.69
II. Cash flows from investing activities:
Cash receipts from withdrawal of
83,791,000.00
investments
Cash receipts from investment income 1,530,581,043.13 1,438,665,904.66
Net cash receipts from the disposal of
fixed assets, intangible assets and other
long-term assets
Net cash receipts from the disposal of
subsidiaries & other business units
Other cash receipts related to investing
2,613,000,000.00 2,152,600,000.00
activities
Subtotal of cash inflows from investing
4,227,372,043.13 3,591,265,904.66
activities
Cash payments for the acquisition of
fixed assets, intangible assets and other 56,124,869.55 12,931,959.73
long-term assets
61
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2024 Semi-Annual 2023 Semi-Annual
Cash payments for investments 755,672,000.00 1,187,508,000.00
Net cash payments for the acquisition
of subsidiaries & other business units
Other cash payments related to
1,720,830,000.00 3,352,754,775.00
investing activities
Subtotal of cash outflows from investing
2,532,626,869.55 4,553,194,734.73
activities
Net cash flows from investing activities 1,694,745,173.58 -961,928,830.07
III. Cash flows from financing activities:
Cash receipts from absorbing
investments
Cash receipts from borrowings 750,000,000.00 1,850,000,000.00
Other cash receipts related to
financing activities
Subtotal of cash inflows from financing
750,000,000.00 1,850,000,000.00
activities
Cash payments for the repayment of
676,000,000.00 1,603,000,000.00
borrowings
Cash payments for distribution of
dividends or profits and for interest 1,465,505,652.48 1,619,589,051.11
expenses
Other cash payments related to
460,205.73 1,126,850.43
financing activities
Subtotal of cash outflows from financing
2,141,965,858.21 3,223,715,901.54
activities
Net cash flows from financing activities -1,391,965,858.21 -1,373,715,901.54
IV. Effect of foreign exchange rate
-70,342.71 969,709.78
changes on cash and cash equivalents
V. Net increase in cash and cash
133,479,431.49 -2,273,986,230.14
equivalents
Add: Opening balance of cash and
2,903,317,341.85 4,054,348,356.27
cash equivalents
VI. Closing balance of cash and cash
3,036,796,773.34 1,780,362,126.13
equivalents
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
62
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
7. Consolidated statement of changes in equity
Current period cumulative
Unit: RMB Yuan
2024 Semi-Annual
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
Undistributed interest
Share capital Capital reserve comprehensive Special reserve risk Others Subtotal
Preferred Perpetual Treasury shares reserve profit
Others income reserve
shares bonds
I. Balance at the end of
3,090,907,356.00 3,613,345,485.13 500,059,711.25 103,920,732.85 60,860,818.76 1,545,453,678.00 16,890,233,961.50 24,804,662,320.99 115,045,831.88 24,919,708,152.87
prior year
Add: Cumulative changes
of accounting policies
Error correction of prior
period
Others
II. Balance at the
3,090,907,356.00 3,613,345,485.13 500,059,711.25 103,920,732.85 60,860,818.76 1,545,453,678.00 16,890,233,961.50 24,804,662,320.99 115,045,831.88 24,919,708,152.87
beginning of current year
III. Current period increase
2,144,278.96 30,166,768.34 821,321,886.96 853,632,934.26 9,680,943.21 863,313,877.47
(or less: decrease)
(I) Total comprehensive
2,144,278.96 2,204,361,642.96 2,206,505,921.92 9,680,943.21 2,216,186,865.13
income
(II) Capital contributed or
withdrawn by owners
1. Ordinary shares
contributed by owners
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment included in equity
4. Others
(III) Profit distribution -1,383,039,756.00 -1,383,039,756.00 -1,383,039,756.00
1. Appropriation of surplus
reserve
2. Appropriation of general
risk reserve
3. Appropriation of profit
-1,383,039,756.00 -1,383,039,756.00 -1,383,039,756.00
to owners
4. Others
63
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2024 Semi-Annual
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
Undistributed interest
Share capital Capital reserve comprehensive Special reserve risk Others Subtotal
Preferred Perpetual Treasury shares reserve profit
Others income reserve
shares bonds
(IV) Internal carry-over
within equity
1. Transfer of capital
reserve to capital
2. Transfer of surplus
reserve to capital
3. Surplus reserve to cover
losses
4. Changes in defined
benefit plan carried over to
retained earnings
5. Other comprehensive
income carried over to
retained earnings
6. Others
(V) Special reserve 30,166,768.34 30,166,768.34 30,166,768.34
1. Appropriation of current
41,724,799.37 41,724,799.37 41,724,799.37
period
2. Application of current
-11,558,031.03 -11,558,031.03 -11,558,031.03
period
(VI) Others
IV. Balance at the end of
3,090,907,356.00 3,613,345,485.13 500,059,711.25 106,065,011.81 91,027,587.10 1,545,453,678.00 17,711,555,848.46 25,658,295,255.25 124,726,775.09 25,783,022,030.34
current period
Preceding period comparative
Unit: RMB Yuan
2023 Semi-Annual
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
Special interest
Share capital Capital reserve comprehensive risk Undistributed profit Others Subtotal
Preferred Perpetual Treasury shares reserve reserve
Others income reserve
shares bonds
I. Balance at the end of
3,090,907,356.00 3,613,097,510.81 500,059,711.25 76,577,564.17 26,196,894.55 1,444,413,940.89 15,823,725,913.44 23,574,859,468.61 87,289,766.85 23,662,149,235.46
prior year
64
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2023 Semi-Annual
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
Special interest
Share capital Capital reserve comprehensive risk Undistributed profit Others Subtotal
Preferred Perpetual Treasury shares reserve reserve
Others income reserve
shares bonds
Add: Cumulative changes
19,857.63 19,857.63 19,857.63
of accounting policies
Error correction of prior
period
Others
II. Balance at the
3,090,907,356.00 3,613,097,510.81 500,059,711.25 76,577,564.17 26,196,894.55 1,444,413,940.89 15,823,745,771.07 23,574,879,326.24 87,289,766.85 23,662,169,093.09
beginning of current year
III. Current period
increase (or less: 29,652,134.01 17,629,528.47 -53,481,603.04 -6,199,940.56 20,217,198.14 14,017,257.58
decrease)
(I) Total comprehensive
29,652,134.01 1,483,229,236.96 1,512,881,370.97 20,217,198.14 1,533,098,569.11
income
(II) Capital contributed or
withdrawn by owners
1. Ordinary shares
contributed by owners
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment included in
equity
4. Others
(III) Profit distribution -1,536,710,840.00 -1,536,710,840.00 -1,536,710,840.00
1. Appropriation of
surplus reserve
2. Appropriation of
65
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2023 Semi-Annual
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
Special interest
Share capital Capital reserve comprehensive risk Undistributed profit Others Subtotal
Preferred Perpetual Treasury shares reserve reserve
Others income reserve
shares bonds
general risk reserve
3. Appropriation of profit
-1,536,710,840.00 -1,536,710,840.00 -1,536,710,840.00
to owners
4. Others
(IV) Internal carry-over
within equity
1. Transfer of capital
reserve to capital
2. Transfer of surplus
reserve to capital
3. Surplus reserve to cover
losses
4. Changes in defined
benefit plan carried over
to retained earnings
5. Other comprehensive
income carried over to
retained earnings
6. Others
(V) Special reserve 17,629,528.47 17,629,528.47 17,629,528.47
1. Appropriation of
26,153,211.92 26,153,211.92 26,153,211.92
current period
2. Application of current
-8,523,683.45 -8,523,683.45 -8,523,683.45
period
(VI) Others
IV. Balance at the end of
3,090,907,356.00 3,613,097,510.81 500,059,711.25 106,229,698.18 43,826,423.02 1,444,413,940.89 15,770,264,168.03 23,568,679,385.68 107,506,964.99 23,676,186,350.67
current period
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
8. Parent company statements of changes in equity
Current period cumulative
Unit: RMB Yuan
2024 Semi-Annual
Items Other equity instruments
Other comprehensive Undistributed
Share capital Capital reserve Less: Treasury shares Special reserve Surplus reserve Others Total equity
Preferred Perpetual income profit
Others
shares bonds
I. Balance at the end of prior year 3,090,907,356.00 3,353,675,803.74 500,059,711.25 506,954.43 10,583,344.97 1,545,453,678.00 5,137,599,917.63 12,638,667,343.52
Add: Cumulative changes of
accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current
3,090,907,356.00 3,353,675,803.74 500,059,711.25 506,954.43 10,583,344.97 1,545,453,678.00 5,137,599,917.63 12,638,667,343.52
year
III. Current period increase (or less:
4,426,769.78 203,280,156.84 207,706,926.62
decrease)
(I) Total comprehensive income 1,586,319,912.84 1,586,319,912.84
(II) Capital contributed or withdrawn
by owners
1. Ordinary shares contributed by
owners
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
included in equity
4. Others
(III) Profit distribution -1,383,039,756.00 -1,383,039,756.00
1. Appropriation of surplus reserve
2. Appropriation of profit to owners -1,383,039,756.00 -1,383,039,756.00
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2024 Semi-Annual
Items Other equity instruments
Other comprehensive Undistributed
Share capital Capital reserve Less: Treasury shares Special reserve Surplus reserve Others Total equity
Preferred Perpetual income profit
Others
shares bonds
2. Transfer of surplus reserve to
capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan
carried over to retained earnings
5. Other comprehensive income
carried over to retained earnings
6. Others
(V) Special reserve 4,426,769.78 4,426,769.78
1. Appropriation of current period 5,513,474.04 5,513,474.04
2. Application of current period -1,086,704.26 -1,086,704.26
(VI) Others
IV. Balance at the end of current
3,090,907,356.00 3,353,675,803.74 500,059,711.25 506,954.43 15,010,114.75 1,545,453,678.00 5,340,880,074.47 12,846,374,270.14
period
Preceding period comparative
Unit: RMB Yuan
2023 Semi-Annual
Other equity instruments Other
Items Less: Treasury Surplus Undistributed Other
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve Total equity
Others shares reserve profit s
shares bonds income
I. Balance at the end of prior year 3,090,907,356.00 3,353,427,829.42 500,059,711.25 506,954.43 1,444,413,940.89 5,489,904,970.92 12,879,101,340.41
Add: Cumulative changes of
19,857.63 19,857.63
accounting policies
Error correction of prior
period
Others
II. Balance at the beginning of current 3,090,907,356.00 3,353,427,829.42 500,059,711.25 506,954.43 1,444,413,940.89 5,489,924,828.55 12,879,121,198.04
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2023 Semi-Annual
Other equity instruments Other
Items Less: Treasury Surplus Undistributed Other
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve Total equity
Others shares reserve profit s
shares bonds income
year
III. Current period increase (or less:
-154,698,676.36 -154,698,676.36
decrease)
(I) Total comprehensive income 1,382,012,163.64 1,382,012,163.64
(II) Capital contributed or withdrawn
by owners
1. Ordinary shares contributed by
owners
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
included in equity
4. Others
(III) Profit distribution -1,536,710,840.00 -1,536,710,840.00
1. Appropriation of surplus reserve
2. Appropriation of profit to owners -1,536,710,840.00 -1,536,710,840.00
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to
capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan
carried over to retained earnings
5. Other comprehensive income
carried over to retained earnings
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2023 Semi-Annual
Other equity instruments Other
Items Less: Treasury Surplus Undistributed Other
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve Total equity
Others shares reserve profit s
shares bonds income
6. Others
(V) Special reserve
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current
3,090,907,356.00 3,353,427,829.42 500,059,711.25 506,954.43 1,444,413,940.89 5,335,226,152.19 12,724,422,521.68
period
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
III. Company profile
Zhejiang NHU Co., Ltd. (the “Company”) was jointly established by Xinchang County Synthetic Chemical Plant, renamed as
NHU Holding Group Co., Ltd. on November 17, 2009) and 9 natural persons including Zhang Pingyi, Yuan Yizhong, Shi Cheng,
Hu Baishan, Shi Guanqun, Wang Xuewen, Shi Sanfu, Cui Xinrong, and Wang Xulin under the document of approval numbered
Zhe Zheng Wei [1999] 9 issued by the former Securities Commission of the People’s Government of Zhejiang Province.
Headquartered in Shaoxing City, Zhejiang Province, the Company was registered at Zhejiang Administration for Industry and
Commerce on April 5, 1999. Currently, the Company holds a business license with unified social credit code of
91330000712560575G, with registered capital of 3,090,907,356.00 yuan, total share of 3,090,907,356 shares (each with par value
of one yuan), of which, 36,409,752 shares are restricted outstanding shares, and 3,054,497,604 shares are unrestricted outstanding
shares. The Company’s shares were listed on Shenzhen Stock Exchange on June 25, 2004.
The Company belongs to pharmaceutical manufacturing industry and is mainly engaged in manufacturing and sales of nutrition,
Aroma Chemicals, and new polymer materials. The Company’s main products are nutrition, Aroma Chemicals, and new polymer
materials.
These financial statements were approved for external reporting by the Company at the seventh meeting of the Ninth Board of
Directors on August 21, 2024.
IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. The ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going concern
within the 12 months after the balance sheet date.
V. Significant accounting policies and estimates
Note to specific accounting policies and estimates: The Company has set up accounting policies and estimates on transactions or
events such as impairment of financial instruments, depreciation of fixed assets, depreciation of right-of-use assets, amortization of
intangible assets, and 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 (CASBEs), and present truly and completely the financial position, results of operations and cash flows 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
Except for the real estate industry, the Company has a relatively short operating cycle for its business, an asset or a liability is
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
classified as current if it is expected to be realized or due within 12 months. The operating cycle for real estate industry starts from
the development of property and ends at sales, which normally extends over 12 months and is subject to specific projects, therefore,
an asset or a liability is classified as current if it is expected to be realized or due within such operating cycle.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan, while the functional currency of
subsidiaries engaged in overseas operations including NHU (Hong Kong) Trading Co., Ltd., NHU Europe GmbH and NHU
Singapore PTE. LTD. , NHU/CHR. OLESEN LATIN AMERICA A/S is the currency of the primary economic environment in which
they operate.
5. Methodology for determining materiality criteria and basis for selection
√applicable □Not applicable
Items Importance Criteria
Significant write-offs of receivables 0.5% of total assets
Significant prepayments aged over 1 year 0.5% of total assets
Significant construction projects in progress 0.5% of total assets
Significant accounts payable aged over 1 year 0.5% of total assets
Significant other accounts payable aged over 1 year 0.5% of total assets
Significant contractual liabilities older than 1 year 0.5% of total assets
Significant cash flows from investing activities 10.00% of total assets
The Company identifies overseas operating entities whose total
assets/total revenues/total profits exceed 15% of the Group's total
Significant offshore operating entities
assets/total revenues/total profits as significant overseas operating
entities
Significant capitalized R&D projects, outsourced R&D
0.5% of total assets
projects
The Company identifies subsidiaries with total assets/total
revenues/total profits exceeding 15% of the Group's total assets/total
Significant subsidiaries, non-wholly owned subsidiaries
revenues/total profits as important subsidiaries, important non-wholly
owned subsidiaries
The company identifies joint ventures, associates, and joint operations
whose total assets/total revenues/total profits exceed 15% of the
Significant Joint Ventures, Associates, Co-Operations
group's total assets/total revenues/total profits as significant joint
ventures, associates, and joint operations
6、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 business combination are measured at carrying amount of the combined party included in the
consolidated financial statements of the ultimate controlling party at the combination date. Difference between 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, if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date, the
excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and the
measurement of the combination cost are reviewed, then the difference is recognized in profit or loss.
7. Criteria for judging control and preparation of consolidated financial statements
1. Controlled judgment
A parent company is recognized as controlling if it has power over the investee, enjoys variable returns through participation in the
investee's relevant activities, and has the ability to use its power over the investee to affect the amount of its variable returns.
2. 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.
8. Classification of joint venture arrangements and accounting treatment of joint operations
1. Joint arrangements are categorized as joint operations and joint ventures.
2. When the company is a joint venture partner in a joint operation, the following items related to the share of interest in the joint
operation are recognized:
(1) Recognize assets held separately and assets held jointly in proportion to the share held;
(2) Recognize liabilities assumed individually, and liabilities assumed jointly in proportion to the share held;
(3) Recognize revenues from the sale of the company's share of joint operating outputs;
(4) Recognize income from joint operations arising from the sale of assets based on the company's share of ownership;
(5) Recognition of expenses incurred individually, as well as expenses incurred by the joint operation based on the company's
share of ownership.
9. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash equivalents refer to
short-term, highly liquid investments that can be readily converted to cash and that are subject to an insignificant risk of changes in
value.
10. Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the approximate exchange rate similar to the spot
exchange rate at the transaction date at initial recognition. At the balance sheet date, monetary items denominated in foreign
currency are translated at the spot exchange rate at the balance sheet date with difference, except for those arising from the
principal and interest of exclusive borrowings eligible for capitalization, included in profit or loss; non-cash items carried at
historical costs are translated at the approximate exchange rate similar to the spot exchange rate at the transaction date, with the
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
RMB amounts unchanged; non-cash items carried at fair value in foreign currency are translated at the spot exchange rate at the
date when the fair value was determined, with difference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot rate at the balance sheet date; the equity items,
other than undistributed profit, are translated at the spot rate at the transaction date; the revenues and expenses in the income
statement are translated into RMB at the approximate exchange rate similar to the spot exchange rate at the transaction date. The
difference arising from the aforementioned foreign currency translation is included in other comprehensive income.
11. 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 at amortized cost;
(2) financial assets at fair value through other comprehensive income; (3) financial assets at fair value through profit or loss.
Financial liabilities are classified into the following four categories when initially recognized: (1) financial liabilities at fair value
through 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 fall 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 at amortized cost.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial liability. The
financial assets and financial liabilities initially recognized by the Company are measured at fair value; for the financial assets and
liabilities at fair value through 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 component or in
circumstances where the Company does not consider the financing components in contracts within one year, the Company
measures the transaction price in accordance with “CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method. Gains or losses on financial
assets that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the
financial assets are derecognized, reclassified, amortized using effective interest method or recognized with impairment loss.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests, impairment gains or losses, and gains and losses on
foreign exchange that calculated using effective interest method shall be included into profit or loss, while other gains or losses are
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
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 at fair value through other comprehensive income
The Company measures its equity instrument investments 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
earnings when the financial assets are derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value (including interests and
dividends) shall be included into profit or loss, except for financial assets that are part of hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including derivatives that are
liabilities) and financial liabilities designated as at fair value through profit or loss. The Company measures such kind of liabilities
at fair value. 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
financial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognized as other
comprehensive income should be transferred out into retained earnings when the 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 Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.
3) Financial guarantee contracts not fall 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)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance with impairment
requirements of financial instruments; b. the amount initially recognized less the amount of accumulated amortization recognized
in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses on financial
liabilities that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when
the financial liabilities are derecognized and amortized using effective interest method.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; or
b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with “CASBE 23 – Transfer
of Financial Assets”.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial liability be
derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial asset, it
derecognizes the financial asset, and any right or liability arising from such transfer is recognized independently as an asset or a
liability. If it retained substantially all of the risks and rewards related to the ownership of the financial asset, it continues
recognizing the financial asset. Where the Company does not transfer or retain substantially all of 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, it derecognizes the financial asset, and any right or liability arising 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, it recognizes the related financial asset and recognizes
the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the
following two items is 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 proportionate to the transferred financial asset
(financial assets transferred refer to debt instrument investments at fair value through other comprehensive income). If the transfer
of financial asset partially satisfies the conditions to derecognition, the entire carrying amount of the transferred financial asset is,
between the portion which is derecognized and the portion which is not, apportioned according to their respective relative fair
value, and the difference between the amounts of the following two items is 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 through other
comprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and information are
available to measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following
hierarchy and used accordingly:
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at
the measurement 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. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in markets that are not active; 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. Level 3 inputs include interest rate that is not observable and
cannot be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paid
to fulfill the disposal obligation assumed in business combination, 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 at amortized cost, debt
instrument investments at fair value through other comprehensive income, contract assets, leases receivable, loan commitments
other than financial liabilities at fair value through profit or loss, financial guarantee contracts not belong to financial liabilities at
fair value through 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 with the respective risks of a default occurring as the weights.
Credit loss refers to the difference between all contractual cash flows that 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), discounted at the original effective interest rate.
Among which, purchased or originated credit-impaired financial assets are discounted at the credit-adjusted effective interest rate.
At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expected credit losses since
initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.
For leases receivable, and accounts receivable and contract assets resulting from transactions regulated in “CASBE 14 –
Revenues”, the Company chooses simplified approach to measure the loss allowance at an amount equal to lifetime expected
credit losses.
For financial assets other than the above, on each balance sheet date, the Company shall assess whether the credit risk on the
financial instrument has increased significantly since initial recognition. The Company shall measure the loss allowance for the
financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has
increased significantly since initial recognition; otherwise, the Company shall measure the loss allowance for that financial
instrument at an amount equal to 12-month expected credit loss.
Considering reasonable and supportable forward-looking information, the Company compares the risk of a default occurring on
the financial instrument as at the balance sheet date with the risk of a default occurring on the financial instrument as at the date of
initial recognition, so as to assess whether the credit risk on the financial instrument has increased significantly since initial
recognition.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
The Company may assume that the credit risk on a financial instrument has not increased significantly since initial recognition if
the financial instrument is determined to have relatively low credit risk at the balance sheet date.
The Company shall estimate expected credit risk and measure 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 loss on each balance sheet date, and 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 measured 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 through other comprehensive income, the loss allowance shall be recognized in other
comprehensive income and shall not reduce the carrying amount of such financial asset.
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset against each other.
However, the company presents them in the balance sheet at the net amount after offsetting each other if the following conditions
are simultaneously met: (1) the company has a legal right to offset the recognized amount and such legal right is currently
enforceable; (2) the company plans to settle the net amount, or to realize the financial asset and settle the financial liability at the
same time.
For transfers of financial assets that do not meet the conditions for derecognition, the company does not offset the transferred
financial assets and related liabilities.
12．Criteria for recognizing and providing for expected credit losses on receivables
1. Receivables with expected credit losses based on a combination of credit risk characteristics
Basis for determining
Portfolio Type Methodology for measuring expected credit losses
the portfolio
Expected credit losses are calculated by reference to
Bankers' acceptances receivable historical credit loss experience, taking into account current
Type of notes conditions and projections of future economic conditions,
Commercial acceptances receivable through default exposures and expected credit loss rates
over the entire duration
Prepare a table of accounts receivable aging versus
expected credit loss rates to calculate expected credit
Accounts receivable – Portfolio grouped
Age of accounts losses, taking into account historical credit loss experience,
with ages
current conditions and projections of future economic
conditions
Other receivables - export tax refund
receivable portfolio
Expected credit losses are calculated by reference to
Other receivables - VAT refund
historical credit loss experience, taking into account current
receivable portfolio
conditions as well as projections of future economic
Other receivables - land bond receivable Nature of receivables
conditions, through default exposures and expected credit
portfolio
loss rates within the next 12 months or over the entire life
Other receivables - portfolio of security span
deposits receivable from customs and tax
authorities
Calculate expected credit losses by reference to historical
credit loss experience and by preparing a table of the
Other receivables - ageing portfolio Age of accounts ageing of other receivables against the expected credit loss
rate, taking into account current conditions and projections
of future economic conditions
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2. Accounts receivable – comparison table of ages and lifetime expected credit loss rate of portfolio grouped with ages
Ages Accounts Receivable Expected credit loss Other receivables Expected credit loss
ratio (%) ratio (%)
Within 1 year (inclusive, the same
5.00 5.00
hereinafter)
1-2 years 20.00 20.00
2-3 years 80.00 80.00
Over 3 years 100.00 100.00
The ageing of accounts receivable/other receivables is calculated from the month in which the amounts are actually incurred.
3. Criteria for identifying receivables for which expected credit losses are provided on an individual basis
For receivables and contract assets with credit risk significantly different from that of the portfolio, the Company accrues
expected credit losses on an individual basis.
13．Inventories
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, materials or supplies, etc. to be consumed in the production process or in the rendering of services.
2. Accounting method for dispatching inventories:
(1) Inventories other than development products are issued using the month-end lump-sum weighted-average method.
(2) When a project is developed, the land used for development is included in the development cost of the project by calculating
the apportionment based on the floor area of the development products.
(3) Issuance of similar development products is accounted for by the average floor area method.
(4) If the public ancillary facilities are completed earlier than the relevant development products, after the public ancillary facilities
are completed and finalized, they are allocated to the development costs of the relevant development projects according to the
budgeted costs of the relevant development projects; if the public ancillary facilities are completed later than the relevant
development products, the public ancillary facilities fees are first withheld from the relevant development products, and then
adjusted according to the difference between the actual number of fees incurred and the number of fees withdrawn after the
completion and finalization of the public ancillary facilities. If the public facilities are later than the completion of the relevant
development products, the public facilities fees will be withheld by the relevant development products first, and the difference
between the actual amount incurred and the amount withheld will be adjusted according to the final account after the completion
of the public facilities.
3. Inventory system
Perpetual inventory method is adopted.
4. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with one-off method.
(2) Packages
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Packages are amortized with one-off method.
5. Criteria for recognizing and providing for provision for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost or net realizable value, and provision for decline in
value of inventories is made for the difference between cost and net realizable value. The net realizable value of inventories used
directly for sale is determined in the normal course of production and operation by the estimated selling price of the inventories
less estimated selling expenses and related taxes; the net realizable value of inventories requiring processing is determined in the
normal course of production and operation by the estimated selling price of the finished goods produced less estimated costs to be
incurred up to the time of completion, estimated selling expenses and related taxes; At the balance sheet date, if there is a contract
price agreed for one part of the same inventory and no contract price exists for the other part, the net realizable value is determined
separately and compared with its corresponding cost, and the amount of provision or reversal of allowance for decline in value of
inventories is determined separately.
14 .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 require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it makes payment in cash,
transfers non-cash assets, assumes its liabilities or issues 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 cost of the investment. The difference between the initial cost of the long-term equity investments and the
carrying amount of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of
capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When long-term equity investments are obtained through business combination under common control achieved in stages, the
Company determines whether it is a “bundled transaction”. If it is a “bundled transaction”, stages as a whole are considered as one
transaction in accounting treatment. If it is not a “bundled transaction”, on the date of combination, investment cost is initially
recognized at the share of the carrying amount of net assets of the combined party included the consolidated financial statements
of the ultimate controlling party. The difference between the initial investment cost of long-term equity investments at the
acquisition date and the carrying amount of the previously held long-term equity investments plus the carrying amount of the
consideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to
offset, any excess is adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value of
considerations paid.
When 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 accounting
treatment:
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1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of the previously
held long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.
2) In the case of consolidated financial statements, the Company determines whether it is a “bundled transaction”. If it is a
“bundled transaction”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundled
transaction”, the carrying amount of the acquirer’s previously held equity interest in the acquiree is remeasured at the acquisition-
date fair value, and the difference between the fair value and the carrying amount is recognized in investment income; when the
acquirer’s previously held equity interest in the acquiree involves other comprehensive income under 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 defined benefit plan of the acquiree.
(3) Long-term equity investments obtained through ways other than business combination: the initial cost of a long-term equity
investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuing
equity securities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according to
“CASBE 12 – Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE 7 –
Non-cash Assets Exchange”
3. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method; for long-term equity investments
with joint control or significant influence relationship, it is accounted for with equity method.
4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
(1) Principles for determining whether or not a transaction is a "package deal"
In the case of a step-by-step disposal of equity investments in subsidiaries through multiple transactions until loss of control, the
Company determines whether a step-by-step transaction is a "package deal" by taking into account the terms and conditions of the
transaction agreement for each step of the step-by-step transaction, the respective disposal consideration, the target of the disposal,
the method of disposal, and the point of time of the disposal, among other information. If the terms, conditions and economic
impacts of each transaction meet one or more of the following conditions, it is generally recognized that multiple transactions are
"package deals":
1) The transactions are entered into at the same time or in consideration of the effects of each other;
2) The transactions as a whole achieve a complete business result;
3) the occurrence of one transaction is dependent on the occurrence of at least one other transaction;
4) a transaction is uneconomic when viewed in isolation, but is economic when considered in conjunction with other transactions.
(2) Accounting treatment for transactions that are not "package deals"
1) Individual financial statements
For equity interests disposed of, the difference between the book value and the actual acquisition price is recognized in profit or
loss for the current period. For the remaining equity interest, if it still has significant influence over the investee unit or exercises
joint control with other parties, it is transferred to the equity method of accounting; if it can no longer exercise control, joint
control or significant influence over the investee unit, it is accounted for in accordance with the relevant provisions of "Accounting
Standard for Business Enterprises (ASBE) No. 22 - Recognition and Measurement of Financial Instruments".
2) Consolidated financial statements
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Prior to the loss of control, the difference between the disposal price and the disposal long-term equity investment's corresponding
share of the subsidiary's net assets calculated on a continuous basis from the date of purchase or the date of consolidation is
adjusted to capital surplus (capital premium), and if capital premium is not sufficient to be eliminated, it is eliminated to retained
earnings.
Upon loss of control over Atomics, the remaining equity interest is remeasured at its fair value at the date of loss of control. The
difference between the sum of the consideration obtained from the disposal of the equity interest and the fair value of the
remaining equity interest, less the share of the original subsidiary's net assets continuously measured from the date of purchase or
the date of consolidation based on the original shareholding ratio, is recognized as investment income in the period in which
control is lost, and goodwill is also eliminated. Other comprehensive income, such as other comprehensive income related to
equity investments in the original subsidiaries, should be transferred to investment income in the current period when control is
lost.。
(3) Accounting treatment of "package transactions
1) Individual financial statements
Each transaction is accounted for as a disposal of a subsidiary and loss of control. However, the difference between the disposal
price and the carrying value of the long-term equity investment corresponding to the disposal of the investment in each case before
the loss of control is recognized as other comprehensive income in the individual financial statements and transferred to profit or
loss in the period of the loss of control when the loss of control occurs.
2) Consolidated financial statements
Each transaction is accounted for as a disposal of a subsidiary and loss of control. However, the difference between the disposal
price and the share of the net assets of the subsidiary corresponding to the disposal of the investment in each case before the loss of
control is recognized as other comprehensive income in the consolidated financial statements and transferred to profit or loss in the
period of loss of control when the control is lost.
15. Fixed assets
(1) Recognition principles
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental to others, or for
administrative purposes, and expected to be used during 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 to the Company and the cost of the assets can be
measured reliably.
(2) Depreciation method
Residual value Annual depreciation
Categories Depreciation method Useful life (years)
proportion (%) rate (%)
Buildings and structures Straight-line method 7-70 5 13.57-1.36
General equipment Straight-line method 5-10 5 19.00-9.50
Special equipment Straight-line method 5-15 5 19.00-6.33
Transport facilities Straight-line method 5-7 5 19.00-13.57
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16. 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 to the Company, 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 auditing of the construction in progress was not finished while reaching the designed usable conditions, it is transferred to
fixed assets using estimated value first, and then adjusted accordingly when the actual cost is settled, but the accumulated
depreciation is not to be adjusted retrospectively.
Categories Standards and timing for transferring construction in progress to fixed assets
Buildings and structures Construction works reach the state of intended use from the date of reaching the state of intended use
General equipment After installation and commissioning to meet the design requirements or contractual standards
Special equipment After installation and commissioning to meet the design requirements or contractual standards
17、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 the following requirements are all met: 1) the asset disbursements have already
incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or production activities which are
necessary to prepare the asset for its intended use or sale have already started.
(2) Suspension of capitalization: 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 during such period are recognized as expenses, and are included in profit or loss, till the acquisition and construction
or production of the asset restarts.
(3) Ceasing of capitalization: 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 to-be-
capitalized amount of interests is determined in light of the actual interest expenses incurred (including amortization of premium
or discount based on 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 acquisition
and construction or production of assets eligible for capitalization, the Company calculates and determines the to-be-capitalized
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amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the
accumulative asset disbursements less the general borrowing by the capitalization rate of the general borrowing used.
18. Intangible assets
(1) Measurement method, useful lives and impairment test
1. Intangible assets include land use right, patent right, non-patented technology, etc. The initial measurement of intangible assets is
based on its cost.
2. For intangible assets with finite useful lives, their amortization amounts are amortized within their useful lives systematically and
reasonably, if it is unable to determine the expected realization pattern reliably, intangible assets are amortized by the straight-line
method with details as follows:
Items Useful life and the basis for its determination Amortization method
Land use right 50,70,(Based on the number of years contained in the warrants) linear method
Software 10,(Based on projected years of benefit) linear method
Patent right 10, (Based on projected years of benefit) linear method
Non-patented technology 15, (Based on projected years of benefit) linear method
(2) Accounting policies on internal R&D expenditures
(1) Personnel labor costs
Personnel labor costs include salaries and wages, basic pension insurance premiums, basic medical insurance premiums,
unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing fund of
the Company's research and development personnel, as well as labor costs of external research and development personnel.
Where research and development personnel serve on multiple research and development projects at the same time, the recognition
of labor costs is based on the records of hours worked by the research and development personnel of each research and
development project provided by the management of the Company, which are allocated proportionately among the different
research and development projects.
Where personnel directly engaged in research and development activities and external research and development personnel are
simultaneously engaged in non-research and development activities, the Company allocates the personnel labor costs actually
incurred by the research and development personnel between research and development expenses and production and operating
expenses based on the records of their working hours in different positions, in accordance with the proportion of their actual
working hours and other reasonable methods.
(2) Direct input costs
Direct input costs refer to the relevant expenditures actually incurred by the Company for the implementation of research and
development activities. It includes: 1) directly consumed materials, fuel and power costs; 2) the development and manufacturing
costs of molds and process equipment used for intermediate tests and product trial production, the purchase costs of samples,
prototypes and general testing means that do not constitute fixed assets, and the inspection costs of trial products; and 3) the costs
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of operating and maintaining, adjusting, inspecting, testing and repairing instruments and equipment used for research and
development activities.
(3) Depreciation expense and long-term amortization expense
Depreciation expense refers to the depreciation of instruments, equipment and buildings in use used in research and development
activities.
If instruments, equipment and buildings in use are used for research and development activities and are also used for non-research
and development activities, necessary records are kept of the use of such instruments, equipment and buildings in use, and the
depreciation expense actually incurred is allocated between research and development expenses and production and operating
expenses using a reasonable method based on factors such as actual man-hours worked and square footage of space utilized.
Long-term amortized expenses are long-term amortized expenses incurred in the course of alteration, modification, renovation and
repair of research and development facilities, which are summarized on the basis of actual expenditures and amortized equally
over a specified period of time.
(4) Amortization expense of intangible assets
Amortization expense of intangible assets is the amortization expense of software, intellectual property, and non-patented
technologies (know-how, licenses, designs and calculation methods, etc.) used in research and development activities.
(5) Design costs
Design expenses are expenses incurred for the conception, development and manufacture of new products and processes, design of
processes, technical specifications, formulation of protocols, operational characteristics, etc., including expenses related to creative
design activities for obtaining innovative, creative and breakthrough products.
(6) Equipment debugging costs and test costs
Equipment debugging costs are costs incurred for research and development activities in the process of preparing workpieces,
including costs incurred for activities such as the development of special, specialized production machines, changes in production
and quality control procedures, or the development of new methods and standards.
Costs incurred for routine tooling preparation and industrial engineering for mass production and commercialization are not
included in the scope of collection.
(7) Commissioned external research and development costs
Entrusted external research and development expenses are expenses incurred by the Company for research and development
activities entrusted to other organizations or individuals inside or outside the country (the results of the research and development
activities are owned by the Company and are closely related to the Company's main business operations).
(8) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to research and development activities,
including technical library and data fees, data translation fees, expert consultation fees, insurance fees for high-tech research and
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development, search, demonstration, evaluation, appraisal and acceptance fees for research and development results, application
fees, registration fees and agency fees for intellectual property rights, meeting fees, travel fees and communication fees.
4. Expenditures on the research phase of an internal project are recognized as profit or loss when they are incurred. An intangible
asset arising from the development phase of an internal project is recognized if the Company can demonstrate all of the followings:
(1) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention to
complete the intangible asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits,
among other things, the Company can 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) the availability of adequate technical, financial
and other resources to complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably the
expenditure attributable to the intangible asset during its development.
19. Impairment of part of long-term assets
For long-term assets such as long-term equity investments, fixed assets, construction in progress, right-of-use assets, intangible
assets with finite useful lives, etc., if at the balance sheet date there is indication of impairment, the recoverable amount is to be
estimated. For goodwill recognized in business combination and intangible assets with indefinite useful lives, no matter whether
there is indication of impairment, impairment test is performed annually. Impairment test on goodwill is performed on 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.
20. Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year (excluding one year).
They are recorded with actual cost, and evenly amortized within the beneficiary period or stipulated period. If items of long-term
prepayments fail to be beneficial to the following accounting periods, residual values of such items are included in profit or loss.
21. Employee benefits
(1) Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-term employee benefits actually
incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution 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) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial assumptions to estimate
related demographic variables and financial variables, measure the obligations under the defined benefit plan, and determine the
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periods to which the obligations are attributed. Meanwhile, the Company discounts obligations under the defined benefit plan 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 Company recognizes the deficit or surplus by deducting the fair value of defined
benefit plan assets from the present value of the defined benefit plan obligation as a net defined benefit plan liability or net defined
benefit plan asset. When a defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at the lower of
the surplus in the defined benefit plan and the asset ceiling;
3) At the end of the period, the Company recognizes the following components of employee benefits cost arising from defined
benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. changes as a result of
remeasurement of the net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevant
asset. Item c is recognized in other comprehensive income and is not to be reclassified subsequently to profit or loss. However, the
Company may transfer those amounts recognized in other comprehensive income within equity.
(3) Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits, with a
corresponding charge to profit or loss at the earlier of the following dates: a. when the Company cannot unilaterally withdraw the
offer of termination benefits because of an employment termination plan or a curtailment proposal; or b. when the Company
recognizes cost or expenses related to a restructuring that involves the payment of termination benefits.
(4) Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a defined contribution
plan, those benefits are accounted for in accordance with the requirements relating to defined contribution plan, while other benefits
are accounted for in accordance with the requirements relating to defined benefit plan. The Company recognizes the cost of employee
benefits arising from other long-term employee benefits as the followings: a. service cost; b. net interest on the net liability or net
assets of other long-term employee benefits; and c. changes as a result of remeasurement of the net liability or net assets of other
long-term employee benefits. As a practical expedient, the net total of the aforesaid amounts is recognized in profit or loss or
included in the cost of a relevant asset.
22. projected liability
1. When an obligation arising from contingencies such as guarantees given to others, litigation matters, product quality assurance,
loss contracts, etc. becomes a present obligation of the company, and it is probable that the performance of the obligation will
result in an outflow of economic benefits to the company and the amount of the obligation can be measured reliably, the company
recognizes the obligation as a projected liability.
2. The company initially measures a projected liability on the basis of the best estimate of the expenditure required to settle the
relevant present obligation and reviews the carrying amount of the projected liability at the balance sheet date.
23. Revenue
Accounting policies on revenue recognition and measurement
1. Revenue recognition principles
At contract inception, the Company shall assess the contracts and shall identify each performance obligation in the contracts, and
determine whether the performance obligation should be satisfied over time or at a point in time.
The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise, the performance
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obligation 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 can control goods as they are created by the Company’s
performance; (3) goods created during the Company’s performance have irreplaceable uses and the Company has an enforceable
right to the payments for performance completed to date during the whole contract period.
For each performance obligation satisfied over time, the Company shall recognize revenue over time by measuring the progress
towards complete satisfaction of that performance obligation. In the circumstance that the progress cannot be measured reasonably,
but the costs incurred in satisfying the performance obligation are expected to be recovered, the Company shall recognize revenue
only to the extent of the costs incurred until it can reasonably measure the progress. For each performance obligation satisfied at a
point in time, the Company shall recognize revenue at the time point that the customer obtains control of relevant goods or services.
To determine whether the customer has obtained control of 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 legal title to the goods; (3) the Company has
transferred physical possession of the goods to the customer, i.e., the customer has physically possessed the goods; (4) the Company
has transferred significant risks and rewards of ownership of the goods to the customer, i.e., the customer has obtained significant
risks and rewards of ownership of the goods; (5) the customer has accepted the goods; (6) other evidence indicating the customer has
obtained control over the goods.
2. Revenue measurement principle
(1) Revenue is measured at the amount of 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 estimate of variable
consideration at 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 high 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) In the circumstance that the contract contains a significant financing component, the Company shall determine the transaction
price based on the price that a customer would have paid for if the customer had paid cash for obtaining control over those goods or
services. The difference between the transaction price and the amount of promised consideration is amortized under effective interest
method over contractual period. The effects of a significant financing component shall not be considered if the Company expects, at
the contract inception, that the period between when the customer obtains control over goods or services and when the customer pays
consideration will be one year or less.
(4) For contracts containing two or more performance obligations, the Company shall determine the stand-alone selling price at
contract inception 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. Revenue recognition method
(1) Revenue from sales of products
The Company’s main products are nutrition, Aroma Chemicals, new polymer materials, etc. Sales of products are performance
obligations satisfied at a point in time. Revenue from domestic sales is recognized when the Company has delivered goods to the
customer as agreed by contract and has obtained delivery note signed by the customer, and 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. Revenue from
overseas sales is recognized when the Company has declared goods to the customs based on contractual agreements and has obtained
a bill of lading, and 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.
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(2) Revenue from real estate sales
Real estate sales are performance obligations satisfied at a point in time. Revenue from real estate sales is recognized when the
Company has delivered properties to the customer as agreed by contract and has obtained the client acceptance receipts signed by the
customer, and 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.
24. Contract assets, contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between its performance
obligations and customers’ payments. Contract assets and contract liabilities under the same contract shall offset each other and be
presented on a net basis.
The Company presents an unconditional right to consideration (i.e., only the passage of time is required before the consideration is
due) as a receivable, and presents a right to consideration in exchange for goods that it has transferred to a customer (which is
conditional on something other than the passage of time) as a contract asset.
The Company presents an obligation to transfer goods to a customer for which the Company has received consideration (or the
amount is due) from the customer as a contract liability.
25．Government grants
1. Government grants shall be recognized if, and only if, the following conditions are all met: (1) the Company will comply with the
conditions attaching to the grants; (2) the grants will be received. Monetary government grants are measured at the amount received
or receivable. Non-monetary government grants are measured at fair value, and can be measured at nominal amount in the
circumstance that fair value cannot be assessed.
2. Government grants related to assets
Government grants related to assets are government grants 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 grants, and government grants related to assets are government grants 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 on a systematic basis over the
useful lives of the relevant assets. Those measured at notional amount are directly included into profit or loss. For assets sold,
transferred, disposed 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 grants related to income
Government grants related to income are government grants other than those related to assets. For government grants that contain
both parts related to assets and parts related to income, in which those two parts are blurred, they are thus collectively classified as
government grants related to income. For government grants 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 relevant cost during the
period in which the relevant cost, expenses or losses are recognized; for government grants 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 used to offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or used to offset relevant cost
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based on business nature, while those not related to the ordinary course of business shall be included into non-operating revenue or
expenditures.
5. Policy interest subvention
(1) In the circumstance that government appropriates interest subvention to lending bank, who provides loans for the Company with
a policy subsidised interest rate, borrowings are carried at the amount received, with relevant borrowings cost computed based on the
principal and the policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company, the subsidised interest shall offset
relevant borrowing cost.
26. Deferred tax assets/Deferred tax liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the carrying amount
and tax base of assets and liabilities (and the difference of the carrying amount and tax base of items not recognized as assets and
liabilities but with their tax base being able to be determined according to tax laws) and in accordance with the tax rate applicable to
the period during which the assets are expected to be recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which is most likely to obtain and which can
be deducted from the deductible temporary difference. At the balance sheet date, if there is any exact evidence that it is probable that
future taxable income will be available against which deductible temporary differences can be utilized, the deferred tax assets
unrecognized in prior periods are recognized.
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a deferred tax asset is
reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow the benefit of the deferred
tax asset to be utilized. Such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable income
will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit or loss, excluding those
arising from the following circumstances: (1) business combination; and (2) the transactions or items directly recognized in equity.
5. Deferred income tax assets and deferred income tax liabilities are stated at net amounts after offsetting when the following
conditions are simultaneously met: (1) there is a legal right to settle current income tax assets and current income tax liabilities on a
net basis; (2) the deferred income tax assets and deferred income tax liabilities relate to income taxes levied by the same tax authority
on the same taxpaying entity, or relate to different taxpaying entities but are not realized or settled during each significant future
period in which the deferred income tax assets and deferred income tax liabilities are reversed. each future period in which the
deferred income tax assets and deferred income tax liabilities are reversed to the extent that the taxable entity involved intends to
either settle the current income tax assets and current income tax liabilities on a net basis or to acquire the assets and settle the
liabilities at the same time.
27. Leases
（1）Operating lease
1. Accounting treatment of leases as les see
At the commencement date, the Company recognizes a lease that has a lease term of 12 months or less as a short-term lease, which
shall not contain a purchase option; the Company recognizes a lease as a lease of a low-value asset if the underlying asset is of low
value when it is new. If the Company subleases an asset, or expects to sublease an asset, the head lease does not qualify as a lease of
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a low-value asset.
For all short-term leases and leases of low-value assets, lease payments are recognized as cost or profit or loss with straight-line
method/unit-of-production method over the lease term.
Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach, the Company recognizes
right-of-use assets and lease liabilities at the commencement date.
1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement of the lease liability;
2) any lease payments made at or before the commencement date, less any lease incentives received; 3) any initial direct costs
incurred by the lessee; and 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 asset using the straight-line method/unit-of-production method. If it is reasonable to be
certain that the ownership of the underlying asset can be acquired by the end of the lease term, the Company depreciates the right-of-
use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the
right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the
lease term.
2) Lease liability
At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at
that date, discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company’s incremental
borrowing rate shall be used. Unrecognized financing expenses, calculated at the difference between the lease payment and its
present value, are recognized as interest expenses over the lease term using the discount rate which has been used to determine the
present value of lease payment and included in profit or loss. Variable lease payments not included in the measurement of lease
liabilities are included in profit or loss in the periods in which they are incurred.
After the commencement date, if there is a change in the following items: a. actual fixed payments; b. amounts expected to be
payable under residual value guarantees; c. an index or a rate used to determine lease payments; d. assessment result or exercise of
purchase option, extension option or termination option., the Company remeasures the lease liability based on the present value of
lease payments after changes, and adjusts the carrying amount of the right-of-use asset accordingly. If the carrying amount of the
right-of-use asset is reduced to zero but there shall be a further reduction in the lease liability, the remaining amount shall be
recognized into profit or loss.
（2） Accounting for leases as lessor
At the inception date of a lease, the Company classifies leases that transfer substantially all the risks and rewards associated with
ownership of the leased asset as finance leases, and all other leases as operating leases.
1) Operating leases
The Company recognizes lease receipts as rental income on a straight-line basis in each period of the lease term. Initial direct costs
incurred are capitalized and amortized on the same basis as rental income and recognized in profit or loss in the current period.
Variable lease payments related to operating leases that are not recognized as lease receipts are recognized in profit or loss when
they are actually incurred.
2) Finance leases
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At the commencement date of the lease term, the Company recognizes a finance lease receivable based on the net investment in
the lease (the sum of the unguaranteed residual value and the present value of the lease receipts not yet received at the
commencement date of the lease term discounted at the interest rate embedded in the lease) and derecognizes the asset under a
finance lease. During each period of the lease term, the Company calculates and recognizes interest income based on the interest
rate embedded in the lease.
Variable lease payments acquired by the Company that are not included in the measurement of the net investment in the lease are
recognized in profit or loss when they are actually incurred.
（3） Sale and leaseback
1) Company as lessee
The Company evaluates to determine whether the transfer of assets in a sale and leaseback transaction is a sale in accordance with
the provisions of ASBE No. 14, "Revenue".
If the transfer of an asset in a sale and leaseback transaction is a sale, the Company measures the right-of-use asset resulting from
the sale and leaseback at the portion of the original asset's carrying value that relates to the right-of-use acquired by leasing it back
and recognizes the related gain or loss only on the transfer of the right to the lessor.
If the transfer of an asset in a sale-leaseback transaction is not a sale, the Company continues to recognize the transferred asset,
and at the same time recognizes a financial liability equal to the amount of the transfer proceeds and accounts for the financial
liability in accordance with Accounting Standard for Business Enterprises (ASBE) No. 22, "Recognition and Measurement of
Financial Instruments".
2) The Company as Lessor
The Company evaluates to determine whether the transfer of assets in a sale-and-leaseback transaction is a sale in accordance with
ASBE No. 14, "Revenue".
If the transfer of assets in a sale-leaseback transaction is a sale, the Company accounts for the purchase of assets in accordance
with other applicable corporate accounting standards and for the lease of assets in accordance with ASBE No. 21 - Leasing.
If the transfer of assets in a sale-leaseback transaction is not a sale, the company does not recognize the transferred assets, but
recognizes a financial asset equal to the transfer proceeds and accounts for the financial asset in accordance with ASBE No. 22,
"Recognition and Measurement of Financial Instruments".
28. Work safety fund
Safety production fees extracted by the Company in accordance with the Administrative Measures for the Extraction and Use of
Enterprise Production Safety Expenses (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the Ministry of Emergency
Response are included in the cost of the relevant products or in current profit or loss, and are also recorded in the account of
"special reserve". When the safety production fee is used, if it is an expense, it is directly deducted from the special reserve. If a
fixed asset is formed, the expenditure incurred is summarized under the "construction in progress" account and recognized as a
fixed asset when the safety project is completed and reaches the intended state of use; at the same time, the special reserve is
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
deducted in accordance with the cost of forming the fixed asset and accumulated depreciation of the same amount is recognized,
and no depreciation will be provided for the fixed asset in the subsequent period.
29. 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 is a component of the Company:
1. that engages in business activities from which it may earn revenues and incur expenses;
2. whose financial performance is regularly reviewed by the Management to make decisions about resource to be allocated to the
segment and to assess its performance; and
3. for which accounting information regarding financial position, financial performance and cash flows is available through
analysis.
30.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, the treasury shares are recorded at the cash distributed to existing shareholders
for repurchase; if the purchased shares are to be retired, the difference between the total par value of shares retired and the cash
distributed to existing shareholders for repurchase is to reduce capital reserve, or retained earnings when the capital reserve is not
enough to reduce. If the Company repurchases vested equity instruments in equity-settled share-based payment transactions with
employees, cost of treasury shares granted to employees and capital reserve (other capital reserve) accumulated within the vesting
period are to be written off on the payment made to employees, with a corresponding adjustment in capital reserve (share
premium).
31.Significant changes in accounting policies and estimates
(1) Significant changes in accounting policies
□ Applicable √ Not Applicable
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
（3）Adjustments to items related to financial statements at the beginning of the year of first-time
implementation of new accounting standards from 2024onwards
□ Applicable √ Not Applicable
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VI. Taxes
1. Main taxes and tax rates
Taxes Tax bases Tax rates
13%, 9%, 8%, 6%, 5% and 19%; export goods enjoy
The output tax calculated based on the revenue
the “exemption, credit and refund” policy and the
from sales of goods or rendering of services in
Value-added tax refund rate ranges from 0% to 13%; the subsidiary
accordance with the tax law, net of the input tax
(VAT) Zhejiang NHU Import & Export Co., Ltd. enjoys the
that is allowed to be deducted in the current
“refund upon collection” policy and the refund rate
period
ranges from 0% to 13%.
Urban maintenance
Turnover tax actually paid 5%, 7%
and construction tax
15%、16.5%、17%、20%、22%、25%、25.5%、
Enterprise income tax Taxable income
34%
A four-grade progressive tax system is adopted. The
rates are: 30% for appreciated value not over 50% of
The incremental amount arising from the total deductible amount; 40% for appreciated value
transfer of state-owned land use right and the over 50% but not over 100% of total deductible
Land appreciation tax
buildings and structures that are constructed on amount; 50% for appreciated value over 100% but
the land not over 200% of total deductible amount; and 60%
for appreciated value over 200% of total deductible
amount.
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 30% of
Housing property tax 1.2%、12%
the cost; for housing property 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
Turnover tax actually paid 2%
surcharge
Solidarity surcharge
Income tax payable 5.5%
[Note]
Trade tax [Note] Taxable income 13.3%
Note: The subsidiaries NHU EUROPE GmbH, NHU PERFORMANCE MATERIALS GMBH and Bardoterminal GmbH are subject
to these rates.
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
The Company 15%
Shangyu NHU Bio-Chem Co., Ltd. 15%
Shandong NHU Pharmaceutical Co., Ltd. 15%
Shandong NHU Vitamins Co., Ltd. 15%
Shandong NHU Amino-acids Co., Ltd. 15%
Zhejiang NHU Special Materials Co., Ltd. 15%
Heilongjiang NHU Biotechnology Co., Ltd. 15%
Zhejiang NHU Pharmaceutical Co., Ltd 15%
Shandong NHU Fine Chemical Science and Technology Co. 15%
NHU (Hong Kong) Trading Co., Ltd. Adoption of the territorial source principle of taxation, with
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Taxpayers Income tax rate
profits tax rate of 8.25% for the first HK$2 million of Hong
Kong-sourced profits and 16.5% for the subsequent Hong
Kong-sourced profits, while profits sourced elsewhere are not
subject to Hong Kong profits tax
NHU EUROPE GmbH 15%
NHU PERFORMANCE MATERIALS GMBH 15%
Bardoterminal GmbH 15%
NHU Singapore PTE. LTD. 17%
Shandong New Shuang'an Biotechnology Co., Ltd 20%
NHU/CHR.OLESEN LATIN AMERICA A/S 22%
NHU CHR.OLESEN MEXICO S.A.P.I. DE C.V. 25.5%
NHU/CHR.OLESEN
34%
BRASIL LTDA
Other tax paying entities other than the above 25%
2. Tax preferential policies
1. Enterprise income tax
(1) Tax incentives for high-tech enterprises
1) According to the Hi-Tech Enterprise Certificate (GR202333009429) issued by Zhejiang Provincial Department of Science
and Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, State Taxation Administration
(STA), the Company is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2023 to 2025. It is
subject to the rate of 15% for enterprise income tax in 2024.
2) According to the Hi-Tech Enterprise Certificate (GR202233002530) issued by Zhejiang Provincial Department of Science
and Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, STA, the subsidiary Shangyu
NHU Bio-Chem Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2022 to 2024. It
is subject to the rate of 15% for enterprise income tax in 2024.
3) According to the Hi-Tech Enterprise Certificate (GR202337003609) issued by Department of Science and Technology of
Shandong Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiary
Shandong NHU Pharmaceutical Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from
2023 to 2025. It is subject to the rate of 15% for enterprise income tax in 2024.
4) According to the Hi-Tech Enterprise Certificate (GR202337002254) issued by Department of Science and Technology of
Shandong Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the grandson
Shandong NHU Vitamins Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2023
to 2025. It is subject to the rate of 15% for enterprise income tax in 2024.
5) According to the Hi-Tech Enterprise Certificate (GR202137000086) issued by Department of Science and Technology of
Shandong Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiary
Shandong NHU Amino Acid Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from
2021 to 2023. It is subject to the rate of 15% for enterprise income tax in 2024.
6) According to the Hi-Tech Enterprise Certificate (GR202133008939) issued by Zhejiang Provincial Department of Science
and Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, STA, the subsidiary Zhejiang
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
NHU Special Materials Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2021 to
2023. It is subject to the rate of 15% for enterprise income tax in 2024.
7) According to the Hi-Tech Enterprise Certificate (GR202123000560) issued by Heilongjiang Provincial Department of
Science and Technology, Heilongjiang Provincial Department of Finance and Heilongjiang Provincial Tax Service, STA, the
subsidiary Heilongjiang NHU Biotechnology Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential
policy from 2021 to 2023. It is subject to the rate of 15% for enterprise income tax in 2024.
8) According to the Hi-Tech Enterprise Certificate (GR202233004365) issued by Zhejiang Provincial Department of
Science and Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, STA, the subsidiary
Zhejiang NHU Pharmaceutical Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from
2022 to 2024. It is subject to the rate of 15% for enterprise income tax in 2024.
9) According to the Hi-Tech Enterprise Certificate (GR202237005690) issued by Department of Science and Technology of
Shandong Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiary
Shandong NHU Fine ChemicalScience and Technology Co. is accredited as a hi-tech enterprise and entitled to enjoy the tax
preferential policy from 2022 to 2024. It is subject to the rate of 15% for enterprise income tax in 2024.
(2) Tax incentives for micro and small enterprises
According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Preferential Policies
on Income Tax for Small and Micro Enterprises and Individual Entrepreneurs (Announcement of the Ministry of Finance and the
State Administration of Taxation No. 6 of 2023) and the Announcement on Further Implementation of Preferential Policies on the
Income Tax for Small and Micro Enterprises (Announcement of the Ministry of Finance and the State Administration of Taxation
No. 13 of 2022), from 1 January 2023 to 31 December 2024, small and micro enterprises are entitled to a reduction of 25% of their
annual taxable income and a tax rate of 20%. taxable income of small micro-profit enterprises not exceeding 1 million yuan shall
be reduced by 25% of the taxable income and subject to enterprise income tax at a rate of 20%. From January 1, 2022 to December
31, 2024, the portion of the annual taxable income of small micro-profit enterprises exceeding 1 million yuan but not exceeding 3
million yuan shall be reduced by 25% of the taxable income and subject to enterprise income tax at a rate of 20%. The grandson
company, Shandong New Shuang'an Biotechnology Co., Ltd is subject to enterprise income tax at the corresponding preferential
tax rate.
(3) Tax Benefits for Foreign Enterprises
According to Section 14 of the Inland Revenue Ordinance, Chapter 112 of the Laws of Hong Kong, Hong Kong adopts the
territorial source principle of taxation, i.e. only profits derived from Hong Kong are subject to Hong Kong tax, whereas profits
derived from elsewhere are not subject to Hong Kong profits tax. The subsidiary, Sun Woo Shing (Hong Kong) Trading Company
Limited, is subject to enterprise income tax at the corresponding preferential tax rate.
2. VAT
(According to the Announcement of the Ministry of Finance and the State Administration of Taxation on the Policy of Value-
added Tax Credits for Enterprises in the Advanced Manufacturing Industry (Announcement of the Ministry of Finance and the
State Administration of Taxation No. 43 of 2023), from 1 January 2023 to 31 December 2027, enterprises in the advanced
manufacturing industry are allowed to offset the payable value-added tax by adding 5% to the current period's creditable input tax
amount. Subsidiaries Shangyu NHU Bio-Chem Co., Ltd., Shandong NHU Pharmaceutical Co., Ltd., Ltd.and Zhejiang NHU
Special Materials Co., Ltd., and grandson Shandong NHU Vitamins Co., Ltd., enjoy the preferential policy of adding 5% to the
input tax credits.
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VII. Notes to items of consolidated financial statements
1. Cash and bank balances
Unit: RMB Yuan
Items Closing balance Opening balance
Cash on hand 25,690.31 21,747.98
Cash in bank 4,830,283,255.54 4,445,046,788.85
Other cash and bank balances 71,464,951.20 97,192,582.33
Digital Currency - RMB 1,100,027.82
Total 4,901,773,897.05 4,543,361,146.98
Including: Deposited overseas 97,689,798.21 89,207,212.60
Other remarks
Other cash and bank balances
Unit: RMB Yuan
Items Closing balance Opening balance
Deposit for bank acceptance 55,388,324.90 77,905,369.24
Deposit for letters of credit 1,641,394.48 12,048,779.84
Customs Margin 3,830,850.00 3,929,600.00
Deposit for construction safety 872,914.81 870,050.56
Deposit for engineering labor costs 854,083.87 853,216.21
Deposit for water fees 661,888.24 661,215.83
Letter of Guarantee Deposit 8,183,592.83 500,000.00
Deposited investment fund 1.00 393,449.58
Deposit for ETC 23,500.00 22,500.00
Alipay balance 8,401.07 8,401.07
Total 71,464,951.20 97,192,582.33
2. Held-for-trading financial assets
Unit: RMB Yuan
Items Closing balance Opening balance
Financial assets at fair value through
8,741,096.39 173,056,050.95
profit or loss
Including:
Financial products with guaranteed
145,000,000.00
principal and floating income
Derivative financial assets 8,741,096.39 28,056,050.95
Total 8,741,096.39 173,056,050.95
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3. Notes receivable
(1) Details on categories
Unit: RMB Yuan
Items Closing balance Opening balance
Bank acceptance 181,217,154.28 116,125,267.70
Commercial Acceptance 9,481,950.00
Total 190,699,104.28 116,125,267.70
(2) Classified disclosure by bad debt provision method
Unit: RMB Yuan
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Notes receivable with provision for 191,198,154.28 100.00% 499,050.00 0.26% 190,699,104.28
bad debts made on a collective basis
Including:
Bank acceptance 181,217,154.28 94.78% 181,217,154.28
Commercial Acceptance 9,981,000.00 5.22% 499,050.00 5.00% 9,481,950.00
Total 191,198,154.28 100.00% 499,050.00 0.26% 190,699,104.28
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Notes receivable with provision for
116,125,267.70 100.00% 116,125,267.70
bad debts made on a collective basis
Including:
Bank acceptance 116,125,267.70 100.00% 116,125,267.70
Commercial acceptance
Total 116,125,267.70 100.00% 116,125,267.70
Provision for bad debts by portfolio Category name: Bank/commercial acceptances portfolio
Unit: RMB Yuan
Closing balance
Categories
Book balance Provision for bad debts Provision proportion
Bank acceptance 181,217,154.28
Commercial acceptance 9,981,000.00 499,050.00 5.00%
Total 191,198,154.28 499,050.00
If the allowance for bad debts on notes receivable is based on a general model of expected credit losses:
□ Applicable √ Not Applicable
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(3) Provision for bad debts made, recovered or reversed during the period
Provision for bad debts in the current period:
Unit: RMB Yuan
Increase/Decrease
Opening
Categories Recovery/ Closing balance
balance Accrual Write-off Others
Reversal
Provision made
on a collective 499,050.00 499,050.00
basis
Total 499,050.00 499,050.00
Of which the amount of bad debt provision recovered or reversed during the period is significant:
□ Applicable √ Not Applicable
(4) Pledged notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance of pledged notes
Bank acceptance 32,594,214.73
Total 32,594,214.73
(5) Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance derecognized Closing balance not yet derecognized
Bank acceptance 394,216,061.95
Total 394,216,061.95
（6）Other remarks
The acceptors of these bankers' acceptances are commercial banks with high creditworthiness, and the probability of non-payment of
bankers' acceptances accepted by them at maturity is relatively low, therefore, the Company will derecognize these bankers'
acceptances that have been endorsed or discounted. However, if the notes are not paid when due, the Company will still be jointly
and severally liable to the bearer in accordance with the provisions of the Bills of Exchange Act.
4. Accounts receivable
（1） Age analysis
Unit: RMB Yuan
Ages Closing balance Opening balance
Within 1 year (inclusive) 3,380,909,745.18 2,540,372,908.81
1-2 years 22,452,142.58 87,390,861.85
2-3 years 82,254,956.50
Over 3 years 2,106,280.80 2,106,280.80
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Ages Closing balance Opening balance
3-4 years 57,000.00 57,000.00
4-5 years 203,200.00
Over 5 years 2,049,280.80 1,846,080.80
Total 3,487,723,125.06 2,629,870,051.46
（2） Details on categories
Unit: RMB Yuan
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Accounts receivable with provision
for bad debts made on a collective 3,487,723,125.06 100.00% 241,446,161.72 6.92% 3,246,276,963.34
basis
Total 3,487,723,125.06 100.00% 241,446,161.72 6.92% 3,246,276,963.34
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Accounts receivable with provision
for bad debts made on a collective 2,629,870,051.46 100.00% 146,603,098.58 5.57% 2,483,266,952.88
basis
Total 2,629,870,051.46 100.00% 146,603,098.58 5.57% 2,483,266,952.88
Provision for bad debts by portfolio Category name: Accounts receivable for which provision for bad debts is made using ageing
portfolios
Unit: RMB Yuan
期末余额
Ages Closing balance of provision Proportion to the total balance
Closing balance
for bad debts of receivables
Within 1 year (inclusive) 3,380,909,745.18 169,045,487.18 5.00%
1-2 years 22,452,142.58 4,490,428.53 20.00%
2-3 years 82,254,956.50 65,803,965.21 80.00%
Over 3 years 2,106,280.80 2,106,280.80 100.00%
Total 3,487,723,125.06 241,446,161.72
A description of the basis for determining the portfolio:
Provision for bad debts using an ageing portfolio
If the allowance for bad debts for accounts receivable is based on the general model of expected credit losses:
□ Applicable √ Not Applicable
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（3） Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Increase/Decrease
Opening
Categories Recovery/ Closing balance
balance Accrual Write-off Others
Reversal
Provision made
on a collective 146,603,098.58 94,843,063.14 241,446,161.72
basis
Total 146,603,098.58 94,843,063.14 241,446,161.72
（4）Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the total balance of Closing balance of provision
Debtors Closing balance
receivables for bad debts
Client A 366,824,260.14 10.52% 18,341,213.01
Client B 279,142,788.47 8.00% 16,910,777.69
Client C 93,786,644.46 2.69% 66,370,253.57
Client D 60,510,394.73 1.73% 3,025,519.74
Client E 59,929,667.43 1.72% 2,996,483.37
Total 860,193,755.23 24.66% 107,644,247.38
5. Receivables financing
（1） Presentation of receivable financing classifications
Unit: RMB Yuan
Items Closing balance Opening balance
Bank acceptance 537,845,382.40 331,634,090.61
Total 537,845,382.40 331,634,090.61
（2） Pledged notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance of pledged notes
Bank acceptance 174,672,943.58
Subtotal 174,672,943.58
（3） Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance derecognized Closing balance not yet derecognized
Bank acceptance 701,104,911.77
Total 701,104,911.77
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（4） Other remarks:
Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little possibility
of failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted bank
acceptance. However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on such
acceptance, according to the China Commercial Instrument Law.
6. Other receivables
Unit: RMB Yuan
Items Closing balance Opening balance
Other receivables 184,691,433.46 142,060,705.67
Total 184,691,433.46 142,060,705.67
（1） Dividend receivable
1） Categorized by nature
Unit: RMB Yuan
Nature of receivables Closing book balance Opening book balance
Export tax refund 96,004,673.38 59,999,917.27
Security deposits 24,090,926.26 26,223,295.23
Refundable VAT 42,110,754.72 49,708,056.90
Employee petty cash 17,871,621.36 5,892,932.02
Temporary advance payment receivable 4,884,395.25 5,105,463.95
Others 6,781,993.55 2,290,423.97
Total 191,744,364.52 149,220,089.34
2） Ages analysis
Unit: RMB Yuan
Ages Closing book balance Opening book balance
Within 1 year (inclusive) 169,631,451.69 121,257,098.80
1-2 years 4,410,671.00 4,774,411.02
2-3 years 1,454,853.23 5,220,071.25
Over 3 years 16,247,388.60 17,968,508.27
3-4 years 2,356,106.18 1,111,491.23
4-5 years 504,362.31 3,390,964.34
Over 5 years 13,386,920.11 13,466,052.70
Total 191,744,364.52 149,220,089.34
3） Classified disclosure by bad debt provision method
√ Applicable □ Not Applicable
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Unit: RMB Yuan
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount
proportion
Including:
Provision for bad
191,744,364.52 100.00% 7,052,931.06 3.68% 184,691,433.46
debts by portfolio
Total 191,744,364.52 100.00% 7,052,931.06 3.68% 184,691,433.46
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount
proportion
Including:
Provision for bad
149,220,089.34 100.00% 7,159,383.67 4.80% 142,060,705.67
debts by portfolio
Total 149,220,089.34 100.00% 7,159,383.67 4.80% 142,060,705.67
Provision for Bad Debts by Portfolio Category Name:
Unit: RMB Yuan
Closing balance
Categories
Amount Carrying amount % to total
Export tax refund receivable
96,004,673.38
portfolio
VAT refund receivable
42,110,754.72
portfolio
Land bond receivable
17,354,493.50
portfolio
Portfolio of deposits
receivable from customs and 1,114,528.35
tax authorities
Ages 35,159,914.57 7,052,931.06 20.06%
Within 1 year (inclusive) 25,565,764.24 1,278,288.25 5.00%
1-2 years 4,410,671.00 882,134.13 20.00%
2-3 years 1,454,853.23 1,163,882.58 80.00%
Over 3 years 3,728,626.10 3,728,626.10 100.00%
Total 191,744,364.52 7,052,931.06
Provision for bad debts is made on the basis of a general model of expected credit losses:
Unit: RMB Yuan
Phase I Phase II Phase III
Provision for bad debts Lifetime expected Lifetime expected Total
12month expected
credit losses (credit not credit losses (credit
credit losses
impaired) impaired)
Opening balance 603,066.99 799,098.71 5,757,217.97 7,159,383.67
Opening balance in the
current period
104
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Phase I Phase II Phase III
Provision for bad debts Lifetime expected Lifetime expected Total
12month expected
credit losses (credit not credit losses (credit
credit losses
impaired) impaired)
--Transferred to phase
-220,533.55 220,533.55
II
--Transferred to phase
-290,970.65 290,970.65
III
Provision made in the
895,754.81 153,472.52 -1,155,679.94 -106,452.61
current period
Closing balance 1,278,288.25 882,134.13 4,892,508.68 7,052,931.06
Classification of stages and bad debt provisioning ratio
The basis of classification by stages: Accounts aged less than one year are classified as stage I, accounts aged 1 to 2 years are
classified as stage II, and accounts aged more than 2 years are classified as stage III.
Changes in carrying amounts for which the amount of change in the provision for losses during the period is material.
□Applicable √ Not applicable
4） Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Opening Increase/Decrease
Categories Closing balance
balance Accrual Recovery/Reversal Write-off Others
Provision made
on a collective 7,159,383.67 -106,452.61 7,052,931.06
basis
Total 7,159,383.67 -106,452.61 7,052,931.06
5） Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the Provision
Nature of
Debtors Book balance Ages total balance of for bad
receivables
other receivables debts
National Revenue
Within 1 year
Service (export tax Export tax refund 96,004,673.38 50.07%
(inclusive)
refunds receivable)
Servicio de
Within 1 year
Administración Refundable VAT 21,033,746.39 10.97%
(inclusive)
Tributaria
Weifang Security deposits 4,835,731.00 2-3 years 2.52%
Municipal Bureau
of Land and
Security deposits 12,518,762.50 Over 3 years 6.53%
Resource, Binhai
District Branch
Within 1 year
Bundeskasse Refundable VAT 15,021,190.45 7.83%
(inclusive)
Secretaria da
Within 1 year
Fazenda Refundable VAT 5,480,141.18 2.86%
(inclusive)
do Estado
合计 154,894,244.90 80.78%
105
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
7. Advances paid
(1) Age analysis
Unit: RMB Yuan
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 166,506,680.76 99.39% 206,538,373.94 98.69%
1-2 years 108,272.82 0.06% 2,623,068.38 1.25%
2-3 years 839,596.86 0.50% 97,159.73 0.05%
Over 3 years 81,915.21 0.05% 16,000.00 0.01%
Total 167,536,465.65 209,274,602.05
Explanation of the reasons for untimely settlement of prepayments aged over 1 year and of significant amount: None
(2) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the total balance of advances
Debtors Book balance
paid (%)
Supplier A 26,475,446.78 15.80%
Supplier B 21,825,705.94 13.03%
Supplier C 13,540,925.74 8.08%
Supplier D 10,546,547.97 6.30%
Supplier E 10,075,183.74 6.01%
Subtotal 82,463,810.17 49.22%
8. Inventories
Is the company subject to disclosure requirements for the real estate industry
No
(1) Inventory classification
Unit: RMB Yuan
Closing balance Opening balance
Provision for Provision for
inventory write- inventory write-
Items down/ Provision down/ Provision
Book balance Carrying amount Book balance Carrying amount
for impairment for impairment of
of cost to fulfill cost to fulfill a
a contract contract
Raw materials 481,956,305.79 6,293,242.29 475,663,063.50 527,624,081.09 6,293,242.29 521,330,838.80
Work in process 1,243,703,289.24 6,519,042.73 1,237,184,246.51 1,178,294,229.77 6,519,042.73 1,171,775,187.04
Goods on hand 2,529,309,730.55 143,316,807.37 2,385,992,923.18 2,417,138,791.32 216,472,992.13 2,200,665,799.19
Goods dispatched 109,009,048.46 0.00 109,009,048.46 108,180,564.86 108,180,564.86
Development cost 54,960,480.22 0.00 54,960,480.22 98,068,949.58 98,068,949.58
106
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Closing balance Opening balance
Provision for Provision for
inventory write- inventory write-
Items down/ Provision down/ Provision
Book balance Carrying amount Book balance Carrying amount
for impairment for impairment of
of cost to fulfill cost to fulfill a
a contract contract
Developed
122,563,022.12 122,563,022.12
products
Materials on
consignment for 5,397,665.27 0.00 5,397,665.27 5,430,259.53 5,430,259.53
further processing
Packages 19,451,169.29 0.00 19,451,169.29 17,397,177.94 17,397,177.94
Low-value
1,645,133.99 0.00 1,645,133.99 73,467,076.28 73,467,076.28
consumables
Total 4,445,432,822.81 156,129,092.39 4,289,303,730.42 4,548,164,152.49 229,285,277.15 4,318,878,875.34
(2) Inventories – Development cost
Unit: RMB Yuan
Estimated total
Items Opening balance Closing balance
investment
Weifang NHU Town Phase II 398 million 54,960,480.22 54,960,480.22
Boao NHU Resort[Note] 550 million 43,108,469.36
Subtotal 98,068,949.58 54,960,480.22
[Note] Qionghai Boao Lidu Real Estate Co., Ltd. was sold in June 2024 for transfer and assignment.
(3) Inventories – Developed products
Unit: RMB Yuan
Date of Opening
Items Increase Decrease Closing balance
completion balance
Boao NHU Resort Center[Note] December 2014 122,563,022.12 122,563,022.12
Subtotal 122,563,022.12 122,563,022.12
[Note] Qionghai Boao Lidu Real Estate Co., Ltd. was sold in June 2024 for transfer and assignment.
(4)Provision for inventory write-down and provision for impairment of cost to fulfill a
contract
Unit: RMB Yuan
Increase Decrease
Opening
Items Recovery/ Closing balance
balance Accrual Others Others
Reversal
Raw materials 6,293,242.29 6,293,242.29
Work in
6,519,042.73 6,519,042.73
process
Goods on hand 216,472,992.13 10,175,642.76 83,331,827.52 143,316,807.37
Total 229,285,277.15 10,175,642.76 83,331,827.52 156,129,092.39
107
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Reasons for write-off of
Determination basis of net realizable Reasons for reversal of provision
Items provision for inventory write-
value for decline in value of inventories
down
Net realizable value is determined as the Increase in net realizable value
Consumption of inventories for
estimated selling price of the relevant of inventories for which
which provision for decline in
Raw materials finished goods, less costs estimated to be provision for decline in value of
value of inventories has been made
incurred to completion, estimated selling inventories was made in prior
during the period
expenses and related taxes. periods
Net realizable value is determined as the Increase in net realizable value
Inventories for which provision for
estimated selling price of the relevant of inventories for which
Work in inventory write-downs was made at
finished goods, less costs estimated to be provision for decline in value of
process the beginning of the period were
incurred to completion, estimated selling inventories was made in prior
depleted during the period.
expenses and related taxes. periods
Increase in net realizable value
Net realizable value is determined as the Inventories for which provision for
of inventories for which
Goods on estimated selling price of the relevant decline in value of inventories was
provision for decline in value of
hand finished goods, less estimated selling made at the beginning of the period
inventories was made in prior
expenses and related taxes. were sold during the period
periods
9. Other current assets
Unit: RMB Yuan
Items Closing balance Opening balance
Prepaid VAT or input VAT to be credited 10,642,974.64 47,538,826.76
Prepaid enterprise income tax 5,070,275.22
Prepaid insurance premiums 5,363,109.87 4,738,519.69
Prepaid rental costs 1,870,678.68
Prepaid urban maintenance and
13,194.85
construction tax
Prepaid education surcharge 7,916.74
Prepaid local education surcharge 5,278.11
Amortized catalyst costs 458,512.52 10,858,733.66
Total 18,335,275.71 68,232,745.03
10、Other equity instrument investments
Unit: RMB Yuan
Profit Losses
Profit Reasons for
Loss for the accumulated accumulated in
recognized in designation as
period charged in other other Dividend income
other at fair value
Items Opening balance Closing balance to other comprehensiv comprehensive recognized during
comprehensive through other
comprehensive e income at income at the the period
income for the comprehensive
income the end of the end of the
period income
period period
Zhejiang Second
7,790,147.55 7,790,147.55
Pharma Co., Ltd.
Shanghai
NewMargin
15,208,000.00 14,208,000.00 1,500,000.00
Yongjin Eqiuty
Enterprise (LP)
Total 22,998,147.55 21,998,147.55 1,500,000.00
108
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Other remarks: During the reporting period, RMB1,000,000.00 was recovered from the investment in Shanghai Lianchuang
Yongjin Equity Investment Enterprise (Limited Partnership) and RMB1,500,000.00 was received as dividend from Shanghai
Lianchuang Yongjin Equity Investment Enterprise (Limited Partnership).
11. Long-term equity investments
Unit: RMB Yuan
Increase/Decrease
Closing
Cash balance
Opening Closing Investment Adjustment dividen Closing of
Invest Chan Provis
Investees carrying carrying income/losses in other d/ Profit carrying provisi
Investments ments ges in ion for
amount amount recognized comprehen declared Others amount on for
increased decrea other impair
under equity sive for impair
sed equity ment
method income distribut ment
ion
I. Joint ventures
Ningbo ZRCC NHU
Biotechnology Co., 216,166,978.49 155,672,000.00 -15,649,565.41 356,189,413.08
Ltd.
Subtotal 216,166,978.49 155,672,000.00 -15,649,565.41 356,189,413.08
II. Associates
Zhejiang Chunhui
Environmental
281,395,724.54 28,351,365.91 -13,377.44 309,733,713.01
Protection Energy Co.,
Ltd.
Zhejiang sanbo
polymer
Co., Ltd
Envalior NHU
Engineering Materials 27,298,340.00 7,637,695.80 -2,296,983.17 32,639,052.63
(Zhejiang) Co.,Ltd.
Zhejiang Saiya
14,700,
Chemical Materials 131,603,201.04 7,537,514.10 517,607.75 124,958,322.89
000.00
Co., Ltd.
CysBio ApS 31,028,778.21 -1,932,131.62 187,297.78 29,283,944.37
Shandong Bin’an
Vocational Training
5,057,575.53 -823,341.89 4,234,233.64
School Co., Ltd.
[Note1]]
Anhui Innovation
4,594,602.27 375,060.61 4,969,662.88
Technology Co., Ltd
14,700,
Subtotal 480,978,221.59 41,146,162.91 187,297.78 -1,792,752.86 505,818,929.42
000.00
14,700,
Total 697,145,200.08 155,672,000.00 25,496,597.50 187,297.78 -1,792,752.86 862,008,342.50
000.00
[Note1] The Company received cash dividends of RMB 14,700,000.00 yuan in the current period
Recoverable amount determined as fair value less costs of disposal, net
□Applicable √ Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
□Applicable √ Not applicable
109
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
12. Fixed assets
Unit: RMB Yuan
Items Closing balance Opening balance
Fixed assets 22,034,912,795.44 21,860,082,637.13
Total 22,034,912,795.44 21,860,082,637.13
(1) Details
Unit: RMB Yuan
Buildings and Generali
Items Special equipment Transport facilities Total
structures equipment
I. Cost:
1. Opening
8,220,153,443.34 246,508,090.08 21,354,530,121.42 31,963,168.08 29,853,154,822.92
balance
2. Increase 91,732,463.86 12,778,563.96 1,150,301,170.54 890,268.63 1,255,702,466.99
(1) Acquisition 26,140,070.12 2,864,396.21 167,460,910.59 890,268.63 197,355,645.55
(2) Transferred in
from construction 65,592,393.74 9,914,167.75 982,840,259.95 1,058,346,821.44
in progress
3. Decrease 799,266.52 1,663,480.47 77,941,247.87 4,629,750.09 85,033,744.95
(1) Disposal/
799,266.52 1,663,480.47 77,941,247.87 4,629,750.09 85,033,744.95
Scrapping
4. Closing balance 8,311,086,640.68 257,623,173.57 22,426,890,044.09 28,223,686.62 31,023,823,544.96
II. Accumulated
depreciation
1. Opening
1,071,234,328.09 156,415,458.02 6,719,751,917.92 16,912,727.74 7,964,314,431.77
balance
2. Increase 116,720,929.89 15,885,054.98 924,244,498.45 1,466,380.18 1,058,316,863.50
(1) Accrual 116,720,929.89 15,885,054.98 924,244,498.45 1,466,380.18 1,058,316,863.50
3. Decrease 2,559,062.65 1,433,555.27 54,038,256.98 4,419,255.16 62,450,130.06
(1) Disposal/
2,559,062.65 1,433,555.27 54,038,256.98 4,419,255.16 62,450,130.06
Scrapping
4. Closing balance 1,185,396,195.33 170,866,957.73 7,589,958,159.39 13,959,852.76 8,960,181,165.21
III. Provision for
impairment
1. Opening
20,980,481.81 7,112.74 7,770,159.47 28,757,754.02
balance
2. Increase
3. Decrease 28,169.71 28,169.71
(1) Disposal/
28,169.71 28,169.71
Scrapping
4. Closing balance 20,980,481.81 7,112.74 7,741,989.76 28,729,584.31
IV. Carrying
amount
1. Closing balance 7,104,709,963.54 86,749,103.10 14,829,189,894.94 14,263,833.86 22,034,912,795.44
2. Opening
7,127,938,633.44 90,085,519.32 14,627,008,044.03 15,050,440.34 21,860,082,637.13
balance
110
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(2) Fixed assets temporarily idle
Unit: RMB Yuan
Accumulated Provision for
Items Cost Carrying amount Remarks
depreciation impairment
Buildings and
194,194,911.61 52,617,330.83 20,975,435.81 120,602,144.97
structures
General equipment 45,557.02 35,565.46 1,916.23 8,075.33
Special equipment 469,001,238.81 375,143,971.34 3,408,235.85 90,449,031.62
Subtotal 663,241,707.44 427,796,867.63 24,385,587.89 211,059,251.92
(3) Fixed assets leased out under operating leases
Unit: RMB Yuan
Items Closing carrying amount
Buildings and structures 32,365,638.71
Subtotal 32,365,638.71
(4) Fixed assets with certificate of titles being unsettled
Unit: RMB Yuan
Items Carrying amount Reasons for unsettlement
Relevant procedures have not yet been
Buildings and structures 783,482,254.92
completed.
Subtotal 783,482,254.92
(5)Impairment testing of fixed assets
□Applicable √Not applicable
13. Construction in progress
Unit: RMB Yuan
Items Closing balance Opening balance
Construction in progress 912,349,768.88 1,621,882,507.56
Total 912,349,768.88 1,621,882,507.56
(1) Details
Unit: RMB Yuan
Closing balance Opening balance
Items Provision Provision
Book balance for Carrying amount Book balance for Carrying amount
impairment impairment
Shandong Industrial
601,552,381.89 601,552,381.89
Park HA Project
Daming Life and
Health Industry 54,993,665.48 54,993,665.48 180,316,245.04 180,316,245.04
Project
111
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Closing balance Opening balance
Items Provision Provision
Book balance for Carrying amount Book balance for Carrying amount
impairment impairment
Workshop 617 West
40,846,076.50 40,846,076.50
Project
Series Aldehyde
Switching
Production Project 62,897,287.60 62,897,287.60 41,051,446.96 41,051,446.96
of 1500 tons in
Workshop 615
Project A4 303,813,822.78 303,813,822.78 232,798,676.59 232,798,676.59
Annual production
capacity of 300 tons
of ketone
30,141,232.47 30,141,232.47
technology reform
and production
expansion project
Process and
legitimacy project
with annual
production capacity 43,907,037.16 43,907,037.16 29,410,485.13 29,410,485.13
of 0.02 million of
glufosinate
ammonium chloride
311 Workshop
Phase II VA 25,128,612.00 25,128,612.00 21,645,004.53 21,645,004.53
Expansion Project
Public
Multifunctional
Productive Services 59,797,642.57 59,797,642.57 37,345,453.89 37,345,453.89
Integrated Platform
Construction Project
Project with an
annual production
43,287,282.66 43,287,282.66
capacity of 30 tons
of Apolyester
Multi-functional
production
78,277,973.72 78,277,973.72 65,875,103.23 65,875,103.23
workshop
construction project
Other piecemeal
283,533,727.57 283,533,727.57 297,613,118.67 297,613,118.67
projects
1,621,882,507.5
Total 912,349,768.88 912,349,768.88 1,621,882,507.56
6
(2) Changes in significant projects
Unit: RMB Yuan
Including:
Amount
Comp Accumulated of
Budgets Accumul Annual
letion amount of borrowing
Transferred to Other ated input capitali Fund
Projects RMB 0000 Opening balance Increase Closing balance percen borrowing cost
fixed assets decrease to budget zation source
Yuan tage cost capitalizat
（%） rate
（%） capitalization ion in
current
period
Shandong
Industrial Park 97,991.14 601,552,381.89 79,608,221.98 681,160,603.87 78.50 100 Others
HA Project
Daming Life and
Health Industry 76,203.56 180,316,245.04 17,192,132.85 142,514,712.41 54,993,665.48 82.91 98 4,394,033.27 Others
112
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Including:
Amount
Comp Accumulated of
Budgets Accumul Annual
letion amount of borrowing
Transferred to Other ated input capitali Fund
Projects RMB 0000 Opening balance Increase Closing balance percen borrowing cost
fixed assets decrease to budget zation source
Yuan tage cost capitalizat
（%） rate
（%） capitalization ion in
current
period
Project
Project A4 40,067.95 232,798,676.59 71,015,146.19 303,813,822.78 75.82 100 Others
合计 214,262.65 1,014,667,303.52 167,815,501.02 823,675,316.28 358,807,488.26 4,394,033.27
(3) Impairment testing of construction in progress
□Applicable √Not applicable
14. Right-of-use assets
(1) Details
Unit: RMB Yuan
Items Buildings and structures Total
I. Cost
1.Opening balance 8,430,844.79 8,430,844.79
2. Increase 19,122.61 19,122.61
(1) Leased in 19,122.61 19,122.61
3. Decrease
4.Closing balance 8,449,967.40 8,449,967.40
II. Accumulated depreciation
1. Opening balance 1,827,213.23 1,827,213.23
2. Increase 963,876.97 963,876.97
(1) Accrual 963,876.97 963,876.97
3. Decrease
(1) Disposal
4.Closing balance 2,791,090.20 2,791,090.20
III. Carrying amount
1. Closing balance 5,658,877.20 5,658,877.20
2. Opening balance 6,603,631.56 6,603,631.56
(2) Impairment testing of right-of-use assets
□Applicable √Not applicable
113
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
15. Intangible assets
(1) Details
Unit: RMB Yuan
Non-patented
Items Land use right Patent right Software Total
technology
I. Cost
1. Opening balance 2,539,212,600.22 37,310,535.25 65,368,458.25 69,814,952.59 2,711,706,546.31
2. Increase 68,967.97 144,800,267.08 1,827,068.67 146,696,303.72
(1) Acquisition 68,967.97 144,800,267.08 1,827,068.67 146,696,303.72
3. Closing balance 73,463.97 14,812.50 5,611.37 93,887.84
(1) Disposal 73,463.97 14,812.50 5,611.37 93,887.84
4.Closing balance 2,539,208,104.22 37,295,722.75 210,168,725.33 71,636,409.89 2,858,308,962.19
II. Accumulated
amortization
1. Opening balance 265,286,407.60 8,156,816.64 6,299,039.16 24,403,529.09 304,145,792.49
2. Increase 25,158,939.14 1,488,231.21 2,934,242.34 3,007,187.96 32,588,600.65
(1) Accrual 25,158,939.14 1,488,231.21 2,934,242.34 3,007,187.96 32,588,600.65
3. Decrease
(1) Disposal/
Scrapping
4. Closing balance 290,445,346.74 9,645,047.85 9,233,281.50 27,410,717.05 336,734,393.14
IV. Carrying amount
1. Closing balance 2,248,762,757.48 27,650,674.90 200,935,443.83 44,225,692.84 2,521,574,569.05
2. Opening balance 2,273,926,192.62 29,153,718.61 59,069,419.09 45,411,423.50 2,407,560,753.82
At the balance sheet date, intangible assets formed through internal research and development account for 0.00% of total intangible
assets.
16. Goodwill
(1) Cost
Unit: RMB Yuan
Investees or Increase Decrease
Opening
events resulting Business Translation Translation Closing balance
balance Disposal
in goodwill combination reserve reserve
Bardoterminal
2,259,627.83 2,259,627.83
GmbH
NHU/CHR.OL
ESEN LATIN 3,622,704.97 3,622,704.97
AMERICA A/S
Total 5,882,332.80 5,882,332.80
114
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(2) Provision for impairment
Unit: RMB Yuan
Investees or Increase Decrease
Opening
events resulting Business Translation Translation Closing balance
balance Disposal
in goodwill combination reserve reserve
Bardoterminal
2,259,627.83 2,259,627.83
GmbH
Total 2,259,627.83 2,259,627.83
(3) Information about the asset group or combination of asset groups in which goodwill is located
Composition and basis of the asset Operating segments
Categories Consistency with prior years
group or portfolio to which it belongs and basis
Offshore self-accounting warehousing
and logistics companies, which Independent
Bardoterminal GmbH management recognises as an asset warehousing and Yes
group in its entirety from the point of logistics company
acquisition
Foreign self-accounting sales entities,
NHU/CHR.OLESEN LATIN which management identifies as an Independent sales
Yes
AMERICA A/S asset group in its entirety from the agents
point of acquisition
(4) Specific determination of recoverable amount
The recoverable amount is determined as fair value less costs of disposal.
□Applicable √Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
√Applicable □Not applicable
Unit: RMB Yuan
Key parameters for Basis for determining key
Impairment Years of the Key parameters for the
Items Amount recoverable amount the stabilisation parameters for the stabilisation
amount projection period forecast period
period period
Bardoterminal GmbH was acquired in 2017 5%，The discount rate is
and the company's business is gradually commensurate with the
Projections of
maturing in size over the period 2017 to 2022, corresponding macro, industry,
expected future
Bardoterminal with an annual business growth rate of 0 per geographic, market-specific
3,167,484.69 114,007,846.23 cash flows are
GmbH cent from the forecast period to the and market-entity-specific risk
based on
stabilisation period, a gross margin of 35 per factors, and is consistent with
financial
cent and an expense ratio of 22.5 per cent. future net cash flows on a pre-
projections for
tax basis.
the most recent
NHU/CHR.OLESEN LATIN AMERICA A/S 13%，The discount rate is
five years
was acquired in 2022, the company's business commensurate with the
approved by
NHU/CHR.OLESE is gradually maturing in size between 2022 and corresponding macro, industry,
management.
N LATIN 2028, with revenue growth rates of 15% in geographic, market-specific
47,096,504.75 285,866,835.72 The stabilisation
AMERICA 2024, 19% in 2025-2026, and 5% in 2027- and market-entity-specific risk
period is based
A/S 2028; the stabilised revenue growth rate is 0%, factors, and is consistent with
on 20 years.
and the company's Gross profit margin of 4.5 future net cash flows on a pre-
per cent, expense ratio of 2.5 per cent. tax basis.
Total 50,263,989.44 399,874,681.95
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(5) Completion of performance commitments and corresponding impairment of goodwill
Performance commitments existed at the time goodwill was formed and the reporting period or the previous period of the
reporting period was within the performance commitment period
□Applicable √Not applicable
17. Long-term prepayments
Unit: RMB Yuan
Items Opening balance Increase Amortization Other decrease Closing balance
Decoration fees 6,343,215.51 1,955,235.25 4,387,980.26
Catalysts 5,354,746.21 2,500,000.00 3,724,542.80 4,130,203.41
Institute fees 2,710,603.08 2,710,603.08
Total 11,697,961.72 5,210,603.08 5,679,778.05 11,228,786.75
18. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offset
Unit: RMB Yuan
Closing balance Opening balance
Items Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
difference difference
Provision for
80,637,611.91 13,134,329.96 71,881,471.48 11,135,696.68
impairment of assets
Unrealized profit from
121,173,945.85 20,656,497.00 71,231,525.39 10,684,728.85
internal transactions
Deferred income 172,206,171.83 25,830,925.78 193,224,271.51 28,983,640.72
Difference in
depreciation of fixed -832,892.27 -124,933.84 287,023.76 43,053.56
assets
Lease liabilities 2,658,626.07 398,793.91 2,822,404.05 423,360.61
Total 375,843,463.39 59,895,612.81 339,446,696.19 51,270,480.42
(2) Deferred tax liabilities before offset
Unit: RMB Yuan
Closing balance Opening balance
Items Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
difference difference
Difference due to one-
off pre-tax deduction 1,627,262,408.99 261,686,219.79 1,575,781,538.31 247,043,712.25
of fixed assets
Profit before tax of
NHU (Hong Kong) 229,024,007.07 34,353,601.06 164,156,999.23 24,623,549.88
Trading Co., Ltd.
usufructuary assets 2,556,875.40 383,531.31 2,630,791.48 394,618.72
116
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Closing balance Opening balance
Changes in fair value
of trading financial
934,443.21 233,610.80 934,443.21 233,610.80
instruments, derivative
financial instruments
Total 1,859,777,734.67 296,656,962.96 1,743,503,772.23 272,295,491.65
(3) Deferred tax assets or liabilities after offset
Unit: RMB Yuan
Closing balance of Opening balance of
Closing balance of Opening balance of
deferred tax assets deferred tax assets
Items deferred tax assets/ deferred tax assets/
offset by deferred tax offset by deferred tax
liabilities after offset liabilities after offset
liabilities liabilities
Deferred tax assets 55,052,098.04 4,843,514.77 50,620,401.24 650,079.18
Deferred tax liabilities 55,052,098.04 241,604,864.92 50,620,401.24 221,675,090.41
(4) Details of unrecognized deferred tax assets
Unit: RMB Yuan
Items Closing balance Opening balance
Deductible temporary difference 156,818,216.64 436,744,796.84
Deductible losses 2,874,857,029.72 3,044,096,175.08
Total 3,031,675,246.36 3,480,840,971.92
(5) Maturity years of deductible losses of unrecognized deferred tax assets
Unit: RMB Yuan
Maturity years Closing balance Opening balance Remarks
Year 2027 4,380,243.82
Year 2028 560,199,090.37 34,126,279.57
Year 2029 502,457,474.51 68,271,533.21
Year 2030 189,818,992.65 232,539,024.92
Year 2031 233,378,345.64 284,461,823.88
Year 2032 159,969,062.01 1,081,974,270.06
Year 2033 603,379,732.81 1,338,342,999.62
Year 2034 625,654,331.73
Total 2,874,857,029.72 3,044,096,175.08
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19. Other non-current assets
Unit: RMB Yuan
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Pollution
emission 13,851,533.98 13,851,533.98 15,360,572.70 15,360,572.70
trading fees
Payments for
77,696,000.00 77,696,000.00 78,962,800.00 78,962,800.00
coal quota
Prepayments
for long-term 79,346,506.21 79,346,506.21 43,789,431.19 43,789,431.19
assets
Total 170,894,040.19 170,894,040.19 138,112,803.89 138,112,803.89
20. Restrictions on assets as of the end of the reporting period
Unit: RMB Yuan
Closing balance Opening balance
Items Carrying Type of Carrying Type of
Book balance Restrictions Book balance Restrictions
amount restriction amount restriction
Cash and Banker's Banker's
bank 71,456,549.13 71,456,549.13 pledges acceptance 96,790,731.68 96,790,731.68 pledges acceptance
balances deposit deposit
Opening a Opening a
Notes pledge of pledge of
32,594,214.73 32,594,214.73 pledges 94,097,743.14 94,097,743.14 pledges
receivable banker's banker's
acceptances acceptances
Mortgage to
Mortgage to a
a bank for
Fixed bank for the
94,874,505.48 77,901,231.39 collateral 97,257,595.52 81,371,634.23 collateral the purpose
assets purpose of
of obtaining
obtaining a loan
a loan
Mortgage to
Mortgage to a
a bank for
Intangible bank for the
10,042,866.95 10,042,866.95 collateral 10,301,747.64 10,301,747.64 collateral the purpose
assets purpose of
of obtaining
obtaining a loan
a loan
Opening a Opening a
Receivabl
pledge of 143,872,489.1 pledge of
es 174,672,943.58 174,672,943.58 pledges 143,872,489.15
5 pledges
banker's banker's
financing
acceptances acceptances
426,434,345.8
Total 383,641,079.87 366,667,805.78 442,320,307.13
4
21. Short-term borrowings
(1) Details on categories
Unit: RMB Yuan
Items Closing balance Opening balance
Guaranteed borrowings 45,750,198.04 12,686,706.84
Credit borrowings 1,531,088,314.27 1,223,001,356.06
Total 1,576,838,512.31 1,235,688,062.90
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22. Notes payable
Unit: RMB Yuan
Categories Closing balance Opening balance
Bank acceptance 307,717,300.33 349,347,472.36
Total 307,717,300.33 349,347,472.36
23. Accounts payable
(1) Details
Unit: RMB Yuan
Items Closing balance Opening balance
Materials and labor costs 950,985,900.65 692,476,954.09
Payments for engineering and equipment 795,018,240.32 1,238,481,643.96
Total 1,746,004,140.97 1,930,958,598.05
24. Other payables
Unit: RMB Yuan
Items Closing balance Opening balance
Other payables 167,570,834.36 53,671,773.90
Total 167,570,834.36 53,671,773.90
1) Categorized by nature
Unit: RMB Yuan
Items Closing balance Opening balance
Security deposits 17,545,965.92 22,235,033.12
Unpaid expenses payable 6,399,080.24 12,568,235.33
Temporary receipts payable 4,830,313.96 13,765,955.47
Earnest money for housing purchase
600,000.00
(Boao NHU Resort Center)
Call loans 8,536,895.76
Others 130,258,578.48 4,502,549.98
Total 167,570,834.36 53,671,773.90
25. Contract liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Payments for goods received in advance 174,322,469.67 251,008,240.97
Total 174,322,469.67 251,008,240.97
119
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26. Employee benefits payable
(1) Details
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
I. Short-term employee
418,273,203.88 1,010,136,491.17 1,144,102,055.15 284,307,639.90
benefits
II. Post-employment
benefits – defined 65,071,491.46 65,071,491.46
contribution plan
Total 418,273,203.88 1,075,207,982.63 1,209,173,546.61 284,307,639.90
(2) Details of short-term employee benefits
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
1. Wage, bonus, allowance and subsidy 393,259,909.40 883,502,285.82 1,016,690,832.88 260,071,362.34
2. Employee welfare fund 55,762,488.65 55,762,488.65
3. Social insurance premium 33,963,886.10 33,963,886.10
Including: Medicare premium 29,373,359.63 29,373,359.63
Occupational injuries premium 4,256,297.16 4,256,297.16
Maternity premium 334,229.31 334,229.31
4. Housing provident fund 31,858,031.18 31,858,031.18
5. Trade union fund and employee
25,013,294.48 5,049,799.42 5,826,816.34 24,236,277.56
education fund
Total 418,273,203.88 1,010,136,491.17 1,144,102,055.15 284,307,639.90
(3) Details of defined contribution plan
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
1. Basic endowment
62,772,606.11 62,772,606.11
insurance premium
2. Unemployment insurance
2,298,885.35 2,298,885.35
premium
Total 65,071,491.46 65,071,491.46
27. Taxes and rates payable
Unit: RMB Yuan
Items Closing balance Opening balance
VAT 36,985,031.54 25,412,719.25
Enterprise income tax 276,012,168.64 205,149,607.58
Individual income tax withheld for tax 3,441,658.62 12,600,229.27
120
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Closing balance Opening balance
authorities
Urban maintenance and construction tax 5,799,066.50 2,768,413.70
Land appreciation tax 4,185,749.32 2,052,563.31
Housing property tax 7,702,107.10 19,557,360.54
Land use tax 5,570,264.77 18,825,864.81
Education surcharge (local education
15,427,321.94
surcharge)
Total 339,696,046.49 301,794,080.40
28. Non-current liabilities due within one year
Unit: RMB Yuan
Items Closing balance Opening balance
Long-term borrowings due within one year 1,848,725,931.41 1,562,730,340.48
Lease liabilities due within one year 1,560,583.84 1,662,118.19
Total 1,850,286,515.25 1,564,392,458.67
29. Other current liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Output VAT to be recognized 18,929,551.34 17,260,124.76
Total 18,929,551.34 17,260,124.76
30. Long-term borrowings
(1) Categories
Unit: RMB Yuan
Items Closing balance Opening balance
Mortgaged borrowings 21,874,475.29 26,217,293.08
Guaranteed borrowings 628,607,666.66 748,822,433.32
Credit borrowings 5,901,011,879.25 6,046,603,468.18
Total 6,551,494,021.20 6,821,643,194.58
31. Lease liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Unpaid lease payments 5,379,712.29 6,464,449.62
Add: Unrealized financing expenses -1,080,464.68 -1,224,313.19
Total 4,299,247.61 5,240,136.43
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32. Deferred income
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance Reasons for balance
The Company received
government grants
related to assets, which
Government grants 1,065,586,274.49 50,570,300.00 67,954,853.18 1,048,201,721.31 were amortized based
on the depreciation
progress of
corresponding assets.
Total 1,065,586,274.49 50,570,300.00 67,954,853.18 1,048,201,721.31
33. Share capital
Unit: RMB Yuan
Movements（+、-）
Items Opening balance Reserve Closing balance
Issue of
Bonus shares transferred to Others Subtotal
new shares
shares
Total shares 3,090,907,356.00 3,090,907,356.00
34. Capital reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Share/capital premium 3,334,992,617.92 3,334,992,617.92
Other capital reserve 278,352,867.21 278,352,867.21
Total 3,613,345,485.13 3,613,345,485.13
35. Treasury shares
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Treasury shares 500,059,711.25 500,059,711.25
Total 500,059,711.25 500,059,711.25
36.Other comprehensive income (OCI)
Unit: RMB Yuan
Current period cumulative
Less: OCI Less: OCI
Current period previously previously
Items Opening balance cumulative recognized but recognized but
Less:
Attributable to
Attributable to non- Closing balance
Income controlling
before income transferred to transferred to parent company
tax shareholders
tax profit or loss in retained earnings
current period in current period
Items not to be reclassified
103,920,732.85 -768,510.72 2,144,278.96 -2,912,789.68 106,065,011.81
subsequently to profit or loss
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Current period cumulative
Less: OCI Less: OCI
Current period previously previously
Items Opening balance Less: Attributable to non- Closing balance
cumulative recognized but recognized but Attributable to
Income controlling
before income transferred to transferred to parent company
tax shareholders
tax profit or loss in retained earnings
current period in current period
Including: Other comprehensive
income to be transferred to profit or 506,954.43 506,954.43
loss under equity method
Translation reserves 103,413,778.42 -768,510.72 2,144,278.96 -2,912,789.68 105,558,057.38
Total 103,920,732.85 -768,510.72 2,144,278.96 -2,912,789.68 106,065,011.81
37. Special reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Work safety fund 60,860,818.76 41,724,799.37 11,558,031.03 91,027,587.10
Total 60,860,818.76 41,724,799.37 11,558,031.03 91,027,587.10
Other remarks, including remarks on current movements and reasons for movements:
According to the "enterprise safety production costs and the use of management practices," the production and storage of dangerous
goods enterprises based on the actual business income of the previous year, the adoption of the regressive approach to the average
monthly withdrawal in accordance with the following standards: 1) operating income of up to 10 million yuan, in accordance with
4.5%; 2) operating income of more than 10 million yuan to 100 million yuan, in accordance with 2.25% extraction; 3) operating
income of more 100 million to 1 billion yuan, in accordance with 0.55% extraction; 4) 0.2% for the part of business income
exceeding RMB 1 billion.
According to the " Electricity production and supply enterprises," the production and storage of dangerous goods enterprises based
on the actual business income of the previous year, the adoption of the regressive approach to the average monthly withdrawal in
accordance with the following standards: 1) operating income of up to 10 million yuan, in accordance with 3%; 2) operating income
of more than 10 million yuan to 100 million yuan, in accordance with 1.5% extraction; 3) 0.8% for the part of business income
exceeding 100 million to 1 billion; 4) 0.6% for the part of business income exceeding RMB 1 billion.
38. Surplus reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Statutory surplus
1,545,453,678.00 1,545,453,678.00
reserve
Total 1,545,453,678.00 1,545,453,678.00
39. Undistributed profit
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Unallocated earnings at the end of the
16,890,233,961.50 15,823,725,913.44
previous period before adjustment
Adjustments to total unappropriated earnings
18,898.47
at the beginning of the period (increase +,
123
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Current period cumulative Preceding period comparative
decrease -)
Adjustment to unappropriated earnings at the
16,890,233,961.50 15,823,744,811.91
beginning of the period
Add: Net profit attributable to owners of the
2,204,361,642.96 2,704,238,767.54
parent company
Less: Appropriation of statutory surplus
101,038,777.95
reserve
Dividend payable on ordinary shares 1,383,039,756.00 1,536,710,840.00
Closing balance 17,711,555,848.46 16,890,233,961.50
According to the profit distribution plan for the year 2023 resolved at the annual general meeting of the Company for the year
2023, based on the total share capital of 3,090,907,356 excluding the repurchased shares of 17,485,676 shares, 3,073,421,680
shares, a cash dividend of RMB4.50 (tax included) per 10 shares will be paid to all shareholders, making a total of
RMB1,383,039,756.00 yuan.
40. Operating revenue/Operating cost
Unit: RMB Yuan
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 9,724,806,954.17 6,107,204,399.47 7,320,741,964.94 4,925,581,429.30
Other operations 119,905,260.19 84,174,661.90 97,772,611.15 63,952,403.65
Total 9,844,712,214.36 6,191,379,061.37 7,418,514,576.09 4,989,533,832.95
Including: Revenue
from contracts with 9,840,985,911.28 6,191,168,443.70 7,416,241,598.70 4,989,358,403.24
customers
Details of revenue:
Unit: RMB Yuan
Categories of contracts Revenue Cost
By product
Including:
Nutrition 6,680,260,846.33 4,284,597,858.42
Aroma Chemicals 1,924,696,068.19 968,275,425.04
New materials 722,250,116.77 519,394,694.87
Others 513,778,879.99 418,900,465.37
Subtotal 9,840,985,911.28 6,191,168,443.70
By operating region
Including:
Domestic 4,400,582,196.98 2,828,412,768.87
Overseas 5,440,403,714.30 3,362,755,674.83
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Categories of contracts Revenue Cost
Subtotal 9,840,985,911.28 6,191,168,443.70
By revenue recognition time
Including:
Goods (transferred at a point in time) 9,840,985,911.28 6,191,168,443.70
Subtotal 9,840,985,911.28 6,191,168,443.70
By sales channel
Including:
Direct sales 7,515,773,318.83 4,671,712,548.49
Agent sales 2,325,212,592.45 1,519,455,895.21
Subtotal 9,840,985,911.28 6,191,168,443.70
Information related to transaction price allocated to the remaining performance obligations:
As of June 30, 2024 revenue corresponding to performance obligations for which the Company has entered into contracts but not
yet performed or fulfilled amounted to 2,051.31 million yuan, of which, 2,051.31 million yuan is expected to be recognized as
revenue in 2024.
41. Taxes and surcharges
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Urban maintenance and construction tax 27,950,701.13 16,139,986.76
Education surcharge (local education
21,044,886.66 12,568,962.34
surcharge)
Housing property tax 17,957,390.24 16,543,479.78
Land use tax 19,771,525.43 13,595,984.53
Vehicle and vessel use tax 27,613.13 31,354.61
non-residential property 6,121,701.84 6,523,091.10
Environmental protection tax 1,010,089.72 994,239.44
Land appreciation tax 98,666.67
Total 93,982,574.82 66,397,098.56
42. Administrative expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Employee benefits 147,795,992.48 134,360,487.91
Depreciation, amortization of intangible assets 57,880,982.28 55,032,882.01
Office expenses, business traveling expenses 14,857,158.93 18,001,839.38
Business entertainment expenses 10,334,287.75 10,453,876.07
consultancy fee 8,965,176.43 9,344,412.68
Insurance premiums 8,250,263.26 7,863,383.20
Long-term stoppage losses 18,229,044.65
Others 29,255,051.75 9,589,569.92
Total 295,567,957.53 244,646,451.17
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
43. Selling expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Employee benefits 39,905,704.51 30,266,930.02
Sales commission and customs
10,294,553.22 16,644,358.83
declaration charges
Office expenses, business traveling
10,531,658.41 9,598,115.80
expenses
Advertising and promotion expenses,
7,467,376.85 5,805,395.37
business entertainment expenses
Others 6,670,288.40 4,626,570.78
Total 74,869,581.39 66,941,370.80
44. R&D expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Employee benefits 212,938,383.40 199,709,646.94
Direct input 198,007,999.74 150,730,396.75
Depreciation, amortization of intangible
43,345,244.55 38,536,030.81
assets
Outsourcing expenses 6,414,946.81 3,267,672.12
Office expenses, business traveling
4,938,593.21 4,840,225.31
expenses
Others 15,316,556.43 19,491,419.66
Total 480,961,724.14 416,575,391.59
45. Financial expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Interest expenses 143,713,361.26 163,988,612.81
Less: Interest income 67,461,973.58 78,203,398.06
Losses on foreign exchange (or less:
-18,026,719.38 -132,095,878.10
gains)
Others 12,826,671.96 9,148,237.96
Total 71,051,340.26 -37,162,425.39
46. Other income
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Government grants related to assets 67,954,853.18 63,691,888.18
Government grants related to income 61,039,443.38 37,629,789.92
Refund of handling fees for withholding
1,220,991.72 1,525,545.35
individual income tax
Total 130,215,288.28 102,847,223.45
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47. Gains on changes in fair value
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Held-for-trading financial assets 11,140,363.10 1,735,988.41
Including: Gains on changes in fair
value arising from financial assets
11,140,363.10 1,735,988.41
classified as at fair value through profit
or loss
Held-for-trading financial liabilities -15,586,223.59 -13,004,458.11
Including: Gains on changes in fair value
arising from financial liabilities
-15,586,223.59 -13,004,458.11
classified as at fair value through profit
or loss
Total -4,445,860.49 -11,268,469.70
48. Investment income
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Investment income from long-term
25,496,597.50 34,855,314.27
equity investments under equity method
Investment income from disposal of
27,067,307.36
long-term equity investments
Investment income from disposal of
-7,317,634.93 -30,080.26
financial instruments
Including: Financial assets classified as
-5,489,429.09 996,763.92
at fair value through profit or loss
Financial liabilities classified as at fair
-1,828,205.84 -1,026,844.18
value through profit or loss
Investment income from bank financial
808,128.72 8,894,052.73
products and structured deposits
Interest income from split loans 180,613.89
Dividend income earned on investments
in other equity instruments during the 1,500,000.00
holding period
Total 47,554,398.65 43,899,900.63
49. Credit impairment loss
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Bad debts -98,041,802.36 6,389,579.21
Total -98,041,802.36 6,389,579.21
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
50. Assets impairment loss
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Inventory write-down loss -10,175,642.76 -81,296,758.10
Total -10,175,642.76 -81,296,758.10
51. Gains on asset disposal
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Gains on disposal of non-current assets -1,128,442.54 13,545,778.16
Total -1,128,442.54 13,545,778.16
52. Non-operating revenue
Unit: RMB Yuan
Amount included in non-
Items Current period cumulative Preceding period comparative
recurring profit or loss
Indemnity income 2,205,585.34 3,394,701.03 2,205,585.34
Others 167,960.12 182,141.54 167,960.12
Total 2,373,545.46 3,576,842.57 2,373,545.46
53. Non-operating expenditures
Unit: RMB Yuan
Amount included in non-
Items Current period cumulative Preceding period comparative
recurring profit or loss
Donation expenditures 290,144.43 591,259.90 290,144.43
Others 3,507,489.38 1,027,741.48 3,507,489.38
Total 3,797,633.81 1,619,001.38 3,797,633.81
54. Income tax expenses
(1) Schedule of income tax expense
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Current period income tax expenses 466,762,110.51 273,369,295.58
Deferred income tax expenses 15,736,338.92 -22,086,097.75
Total 482,498,449.43 251,283,197.83
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB Yuan
Items Current period cumulative
Profit before tax 2,699,453,825.28
Income tax expenses based on statutory/applicable tax rate 404,918,073.79
Effect of different tax rate applicable to subsidiaries 5,416,833.10
Effect of prior income tax reconciliation 12,171,153.76
Effect of non-taxable income -1,954,918.97
Effect of non-deductible costs, expenses and losses 3,975,997.51
Effect of utilization of deductible losses not previously
130,486,731.81
recognized as deferred tax assets
Effect of extra deduction of R&D expenses -72,515,421.57
Income tax expenses 482,498,449.43
55. Other comprehensive income
Please refer to item VII 36 of this section for details.
56. Notes to items of the cash flow statement
(1) Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Interest income from cash in bank 67,372,735.75 77,998,992.00
Receipt of government grants 79,176,571.17 127,517,191.82
Recovery of temporary borrowings and
500.00 1,665,000.00
security deposits
Other receipts and net current accounts 7,116,537.72 4,596,065.33
Total 153,666,344.64 211,777,249.15
Other cash payments related to operating activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
R&D expenditures in the form of cash 7,704,883.00 28,971,437.79
Office expenses and business traveling
51,265,858.74 24,331,184.10
expenses
Advertising and promotion expenses,
14,130,735.80 13,968,143.32
business entertainment expenses
Sales commission and customs
8,404,749.45 16,317,917.34
declaration charges
Insurance expenses 1,140,556.20 2,686,385.45
Other payments and net current accounts 118,084,761.67 97,358,958.00
Total 200,731,544.86 183,634,026.00
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(2) Cash related to investing activities
Other cash receipts related to investing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Redemption of financial products 145,000,000.00 720,000,000.00
Receipt of demobilized loans and interest 20,938,810.13
Total 145,000,000.00 740,938,810.13
Other cash payments related to investing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Payments for purchase of financial
250,000,000.00
products and structured deposits
Total 250,000,000.00
(3) Cash related to financing activities
Other cash payments related to financing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Payments for bank financing handling
807,362.26 1,206,719.90
charges
Payments of handling charges for issuing
200,900.43
letters of guarantee for borrowings
Total 807,362.26 1,407,620.33
Changes in liabilities related to financing activities
√Applicable □ Not applicable
Unit: RMB Yuan
Increase Decrease
Items Opening balance Non-cash Closing balance
Cash movements Non-cash changes Cash movements
changes
Short-term
1,235,688,062.90 1,020,762,913.11 15,252,929.95 694,865,393.65 1,576,838,512.31
borrowings
Long-term
borrowings(including
8,384,373,535.06 1,261,000,000.00 122,672,559.21 1,367,826,141.66 8,400,219,952.61
long-term loans due
within one year)
Lease
liabilities(including
6,902,254.62 1,042,423.17 5,859,831.45
lease liabilities due
within one year)
dividend payable 1,383,039,756.00 1,383,039,756.00
Other accounts
14,858,932.78 103,669,125.77 8,921,359.16 96,239,489.67 13,367,209.72
payable
Total 9,641,822,785.36 2,385,432,038.88 1,520,965,245.16 3,455,695,073.64 96,239,489.67 9,996,285,506.09
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(4) Net presentation of cash flows
Items Basis for net presentation Financial impact
The cash flows related to the Company's investment
business are the cash inflows and outflows of fast-turnover,
large-amount and short-term projects, and the presentation
Other cash receipts related to of the above cash flows on a net basis is more indicative of
investing activities their impact on the Company's ability to pay and solvency, 145,000,000.00
and is more useful for evaluating the Company's ability to
pay and solvency, and analysing the Company's future cash
flows, therefore the Company has presented the cash flows
related to the above business on a net basis.
57. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB Yuan
Supplement information Current period cumulative Preceding period comparative
1. Reconciliation of net profit to cash flows from
operating activities:
Net profit 2,216,955,375.85 1,496,374,753.42
Add: Provision for assets impairment loss 108,217,445.12 74,907,178.89
Depreciation of fixed assets, oil and gas assets,
1,058,316,863.50 803,970,477.86
productive biological assets
Depreciation of right-of-use assets 963,876.97 360,873.71
Amortization of intangible assets 32,588,600.65 26,371,053.50
Amortization of long-term prepayments 5,679,778.05 3,834,293.78
Losses on disposal of fixed assets, intangible
1,128,442.54 -13,545,778.16
assets and other long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains)
Losses on changes in fair value (Less: gains) 4,445,860.49 11,268,469.70
Financial expenses (Less: gains) 74,353,659.15 -36,396,626.05
Investment losses (Less: gains) -47,554,398.65 -43,899,900.63
Decrease of deferred tax assets (Less: increase) -4,193,435.59 -7,849,564.21
Increase of deferred tax liabilities (Less: decrease) 19,929,774.51 -14,236,533.54
Decrease of inventories (Less: increase) 102,731,329.68 -433,678,248.93
Decrease of operating receivables (Less: increase) -961,441,855.30 351,542,987.52
Increase of operating payables (Less: decrease) -473,797,257.62 -983,460,814.93
Others
Net cash flows from operating activities 2,138,324,059.35 1,235,562,621.93
2. Significant investing and financing activities not
related to cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
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Supplement information Current period cumulative Preceding period comparative
Fixed assets leased in under finance leases
3. Net changes in cash and cash equivalents:
Cash at the end of the period 4,830,317,347.92 3,507,891,602.10
Less: Cash at the beginning of the period 4,446,570,415.30 5,151,841,931.86
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase of cash and cash equivalents 383,746,932.62 -1,643,950,329.76
(2) Net cash received for disposal of subsidiaries during the period
Unit: RMB Yuan
Items amounts
Cash or cash equivalents received in the period from disposal of subsidiaries during the period 82,791,000.00
Net cash received on disposal of subsidiaries 82,791,000.00
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Items Closing balance Opening balance
I. Cash 4,830,317,347.92 4,446,570,415.30
Including: Cash on hand 25,690.31 21,747.98
Cash in bank on demand for payment 4,830,283,255.54 4,445,046,788.85
Other cash and bank balances on demand for payment 8,402.07 1,501,878.47
II. Cash and cash equivalents at the end of the period 4,830,317,347.92 4,446,570,415.30
(4) Restricted use but still cash and cash equivalents
Unit: RMB Yuan
Reasons for remaining cash
Items Current period cumulative Preceding period comparative
and cash equivalents
97,689,798.21 89,207,212.60 Deposited overseas
Cash and bank balances
0.00 353,268,853.53 Raised funds
Total 97,689,798.21 442,476,066.13
(5) Monetary funds other than cash and cash equivalents
Unit: RMB Yuan
Current period Reasons for not being cash and cash
Items Preceding period comparative
cumulative equivalents
55,388,324.90 77,905,369.24 Banker's acceptance deposit
Cash and bank balances 1,641,394.48 12,048,779.84 Letter of Credit Deposit
3,830,850.00 3,929,600.00 customs Deposit
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Current period Reasons for not being cash and cash
Items Preceding period comparative
cumulative equivalents
854,083.87 853,216.21 Project works labor wage deposit
872,914.81 870,050.56 Safety Construction deposit
661,888.24 661,215.83 Water deposit
8,183,592.83 500,000.00 Letter of Guarantee Deposit
23,500.00 22,500.00 ETC Deposit
Total 71,456,549.13 96,790,731.68
58. Monetary items in foreign currencies
(1) Details
Unit: RMB Yuan
RMB equivalent at the end of
Items Closing balance in foreign currencies Exchange rate
the period
Cash and bank balances 382,105,443.26
Including: USD 25,308,374.48 7.1268 180,367,723.24
EUR 22,600,141.86 7.6617 173,155,506.92
HKD 3,110,968.51 0.9127 2,839,318.74
JPY 186,470,611.00 0.0447 8,342,323.23
GBP 342,999.39 9.0430 3,101,743.48
SGD 477,979.67 5.2790 2,523,254.68
BRL 8,362,499.66 1.3005 10,875,152.96
MXN 2,044,970.46 0.3857 788,832.92
PLN 63,083.53 1.7689 111,587.09
Accounts receivable 2,819,288,005.50
Including: USD 330,993,185.00 7.1268 2,358,922,230.86
EUR 45,267,427.49 7.6617 346,825,449.27
GBP 529,959.34 9.0430 4,792,422.31
BRL 83,622,000.55 1.3005 108,747,903.06
Other receivables 50,824,998.98
Including: USD 10,265.00 7.1268 73,156.60
EUR 2,961,749.26 7.6617 22,692,034.31
HKD 31,700.00 0.9127 28,932.59
BRL 4,507,120.57 1.3005 5,861,510.30
MXN 56,431,009.55 0.3857 21,765,440.38
SGD 76,515.40 5.2790 403,924.80
Long-term borrowings 45,580,633.21
Including: USD 4,628,121.54 7.1268 32,983,696.59
EUR 732,662.73 7.6617 5,613,442.04
DKK 6,825,818.18 1.0231 6,983,494.58
Accounts payable 514,728,062.82
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RMB equivalent at the end of
Items Closing balance in foreign currencies Exchange rate
the period
Including: USD 47,621,384.86 7.1268 339,388,085.62
EUR 10,813,262.17 7.6617 82,847,970.78
BRL 70,881,476.17 1.3005 92,181,359.76
MXN 805,320.41 0.3857 310,646.66
Other payables 21,236,113.30
Including: USD 2,451,765.95 7.1268 17,473,245.57
EUR 465,110.36 7.6617 3,563,536.05
HKD 33,870.00 0.9127 30,912.47
SGD 31,903.62 5.2790 168,419.21
Non-current liabilities due
7,367,965.75
within one year
Including: EUR 961,662.00 7.6617 7,367,965.75
Long-term borrowings 21,874,475.29
Including: EUR 2,855,042.00 7.6617 21,874,475.29
Lease liabilities 442,221.78
Including: HKD 106,492.90 0.9127 97,193.94
BRL 265,310.77 1.3005 345,027.84
(2) Remarks on overseas operations. For significant overseas operating entities, their main operating places,
functional currencies and adoption basis shall be disclosed. Reasons for any changes in functional currency
shall also be disclosed.
√ Applicable □ Not applicable
NHU EUROPE GmbH is a holding subsidiary of the subsidiary NHU (Hong Kong) Trading Co., Ltd. with the holding proportion
of 51%; Change of shareholding in NHU Performance Materials GmbH：from a wholly owned subsidiary of NHU (Hong Kong)
Trading Ltd. to a subsidiary of NHU Singapore PTE. LTD. with the holding proportion of 85%, Bardoterminal GmbH is a wholly-
owned subsidiary of NHU EUROPE GmbH. The above three entities are all located in Luneburg, Germany, with EUR as
functional currency. NHU Singapore PTE. LTD. is a wholly-owned subsidiary of the Company. It is located in Singapore, with
SGD as functional currency
NHU/Chr.Olesen Latin America A/S, with a shareholding ratio of 51%, located in Gentovt, Denmark, and the functional currency
is EUR; NHU/CHR.OLESEN BRASIL LTDA..is a wholly-owned subsidiary of NHU/Chr.Olesen Latin America A/S , located in
Sao Paulo, Brazil, and its functional currency is BRL; CHR. Olesen Mexico SAPI DE CV is a holding subsidiary of NHU/Olesen
Latin America A/S, with a shareholding ratio of 87%. It is located in Cretaro, Mexico, and its functional currency is MXN.
NHU Singapore PTE. LTD. is a wholly-owned subsidiary of the Company. It is located in Singapore, with SGD as functional
currency.
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59. Leasing
(1) The Company as a les see
√ Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable √ Not applicable
Lease costs for short-term leases or low-value assets with simplified treatment
√ Applicable □ Not applicable
1) Information on right-to-use assets Please refer to item VII 14 of this section for details
2) The Company's accounting policies for short-term leases and leases of low-value assets Please refer to item V 27 of this
section for details. The amounts of short-term lease charges and lease charges for low-value assets recognized in profit or loss are
as follows:
Unit: RMB Yuan
Items Current period Increase Preceding period Decrease
Short-term rental costs 8,166,223.97 3,538,563.64
Total 8,166,223.97 3,538,563.64
3) Current profit or loss and cash flows related to leases
Unit: RMB Yuan
Items Current period Increase Preceding period Decrease
Interest expense on lease liabilities 67,698.96 70,141.71
Total cash outflows related to leases 8,736,731.81 3,831,411.86
4) The maturity analysis of lease liabilities and the corresponding liquidity risk management Please refer to item XII 1 of this
section for details.
(2) The Company as lessor
Operating leases as lessor
√ Applicable □ Not applicable
Unit: RMB Yuan
Of which: Income related to variable lease
Items Rental income
payments not included in lease receipts
Rental income 3,726,303.08
Total 3,726,303.08
Financial leases as lessor
□Applicable √ Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable √ Not applicable
Operating lease assets
Operating lease inventory Please refer to item VII 13 of this section for details.
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Fixed assets under operating leasesPlease refer to item VII 15 of this section for details .
Future undiscounted lease receipts to be received under non-cancellable leases based on lease contracts with lessees
Unit: RMB Yuan
Remaining term Closing balance Opening balance
First year 127,522.95 349,330.00
second year 41,520.00
Total 127,522.95 390,850.00
(3) Recognition of gains and losses on sales under finance leases as a manufacturer or distributor
□Applicable √ Not applicable
VIII. R&D expenses
Unit: RMB Yuan
Items Current period Increase Preceding period Decrease
Employee benefits 212,938,383.40 199,709,646.94
Direct input 198,007,999.74 150,730,396.75
Depreciation, amortization of intangible
43,345,244.55 38,536,030.81
assets
Outsourcing expenses 6,414,946.81 3,267,672.12
Office expenses, business traveling
4,938,593.21 4,840,225.31
expenses
Others 15,316,556.43 19,491,419.66
Total 480,961,724.14 416,575,391.59
Of which: Expensed research and
480,961,724.14 416,575,391.59
development expenditure
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
IX. Changes in the scope of consolidation
1. Disposal of subsidiaries
Whether there were any transactions or events during the period in which control of subsidiaries was lost
√ Applicable □ Not applicable
Unit: RMB Yuan
Difference between
the disposal price
Carrying value of Method of determining
and the share of net Fair value of the Gains or losses Amount of other
the remaining the fair value of the
Basis for assets of the remaining equity arising from the comprehensive income
Disposal at Percentage of equity interest at remaining equity interest
Disposal price at Percentage of Point of determinin subsidiary at the interest at the level remeasurement related to equity
the point of remaining the level of the at the level of the
Name of Subsidiary point of loss of disposals at point loss of g the point level of the of the consolidated of the investments in atomic
loss of equity at date of consolidated consolidated financial
control of loss of control control of loss of consolidated financial statements remaining companies transferred to
control loss of control financial statements statements at the date of
control financial statements at the date of loss equity at fair investment profit or loss
at the date of loss loss of control and key
corresponding to the of control value or retained earnings
of control assumptions
disposal of the
investment
Equity
transfer
Qionghai Boao Lidu offer for 19
82,791,000.00 100.00% agreement 28,770,508.00 0.00% 54,020,492.00 82,791,000.00 28,770,508.00 None 0.00
Real Estate Co., Ltd. sale June ,2024
signed and
in force
Whether there is a step-by-step disposal of investments in subsidiaries through multiple transactions and loss of control during the period
□Applicable √ Not applicable
2. Changes in the scope of consolidation for other reasons
Company names Mode of acquisition of equity Point of acquisition of equity
Tianjin NHU Materials Technology Co., Ltd. investment establishment June 7 , 2024
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
X. Interest in other entities
1. Interest in subsidiaries
(1) Composition of the group
Unit: RMB Yuan
Main Holding proportion (%)
Place of Acquisition
Subsidiaries registered capital operating Business nature
registration Direct Indirect method
place
NHU (Hong Kong) Hong Kong, Hong Kong,
USD2.40millions Commerce 100.00% Establishment
Trading Co., Ltd. China China
Shandong NHU
Weifang, Weifang,
Amino-acids Co., 1,100million(yuan) Manufacturing 100.00% Establishment
Shandong Shandong
Ltd.
Shandong NHU
Weifang, Weifang,
Pharmaceutical 590million(yuan) Manufacturing 100.00% Establishment
Shandong Shandong
Co., Ltd.
Heilongjiang NHU
Suihua, Suihua,
Biotechnology Co., 1,000millions(yuan) Manufacturing 100.00% Establishment
Heilongjiang Heilongjiang
Ltd.
Shandong NHU
Suihua, Suihua,
Vitamins Co., Ltd. 500millions(yuan) Manufacturing 100.00% Establishment
Heilongjiang Heilongjiang
[Note]
The percentage of shareholding in subsidiaries is different from the description of the percentage of voting rights:
[Note] The Company holds shares through Shandong NHU Holdings Co., Ltd.
2. Interests in joint arrangements or associates
(1) Aggregated financial information of insignificant joint ventures and associates
Unit: RMB Yuan
Closing balance/ Opening balance/
Item
Current period cumulative Preceding period comparative
Joint ventures:
Total carrying amount of investments 356,189,413.08 216,166,978.49
Total of the following by percentage of
shareholding
-- Net profit -15,649,565.41 -3,169,284.18
-- Total comprehensive income -15,649,565.41 -3,169,284.18
Associates:
Total carrying value of investments 505,818,929.42 480,978,221.59
Total of the following by percentage of
shareholding
-- Net profit 39,911,718.06 46,985,604.13
-- Other comprehensive income 39,911,718.06 46,985,604.13
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
XI. Government grants
1. Government grants recognized at the end of the reporting period at the amount receivable
□Applicable √ Not applicable
Reasons for not receiving the projected amount of government grants at the projected point in time
□Applicable √ Not applicable
2. Liability items involving government grants
√ Applicable □ Not applicable
Unit: RMB Yuan
non-
Asset/revenue
Item Opening balance Increase operating Decrease other Closing balance
related
income
Deferred
1,065,586,274.49 50,570,300.00 67,954,853.18 1,048,201,721.31 Asset-related
income
Total 1,065,586,274.49 50,570,300.00 67,954,853.18 1,048,201,721.31
3. Government grants related to income
√ Applicable □Not applicable
Unit: RMB Yuan
Item Current period Increase Preceding period Decrease
Government grants related to income 128,994,296.56 101,321,678.10
XII. Risks related to financial instruments
1. Various types of risks arising from financial instruments
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 effects that the risks of financial instruments have on the Company’s financial
performance, so as to maximize the profits of shareholders and other equity investors. Based on such risk management objectives,
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 and adherence to limits on a timely and reliable basis.
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, and details are:
(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
discharge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
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 supportable 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 risen 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
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 bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having granted
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 rate of default, and
exposure to default risk. The Company develops a model of the probability of default, loss rate of default, and exposure to default
risk on the basis of quantitative analysis of historical data (e.g. counterparty rating, guarantee measures and collateral type,
payment method, etc.) and forward-looking information.
3. Please refer to item VII 3、4、5、 and 7 of this section 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
levels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. The Company selects
credible and well-reputed customers based on credit assessment result, and conducts ongoing monitoring on balance of receivables,
to avoid significant risks in bad debts.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
As the Company only conducts business with credible and well-reputed third parties, collateral is not required from
customers. The Company manages credit risk aggregated by customers. As of June 30, 2024, the Company has certain
concentration of credit risk, and 24.66% (December 31, 2023: 22.95%) of the total accounts receivable was due from the five
largest customers of the Company. The Company held no collateral or other credit enhancement on balance of receivables.
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 deficiency of funds in meeting obligations associated with cash or other
financial assets settlement, which is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure
in collecting liabilities from counterparties of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company comprehensively utilized financing tools such as notes settlement, bank borrowings, etc.
and adopts long-term and short-term financing methods to optimize financing structures, and finally maintains 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 classified based on remaining time period till maturity
Unit: RMB Yuan
June 30, 2024
Items Contract amount not yet
Carrying amount Within 1 year 1-3 years Over 3 years
discounted
Bank
9,977,058,464.92 10,421,547,524.48 3,766,596,651.36 6,462,057,074.80 192,893,798.32
borrowings
Notes payable 307,717,300.33 307,717,300.33 307,717,300.33
Accounts
1,746,004,140.97 1,746,004,140.97 1,746,004,140.97
payable
Other payables 167,570,834.36 167,570,834.36 167,570,834.36
Lease liabilities 5,859,831.45 7,204,764.08 1,825,051.79 2,251,236.09 3,128,476.20
Subtotal 12,204,210,572.03 12,650,044,564.22 5,989,713,978.81 6,464,308,310.89 196,022,274.52
(Continued)
Unit: RMB Yuan
December 31, 2023
Items Contract amount not yet
Carrying amount Within 1 year 1-3 years Over 3 years
discounted
Bank borrowings 9,620,061,597.96 10,115,809,381.27 3,052,860,592.80 6,305,307,508.57 757,641,279.90
Notes payable 349,347,472.36 349,347,472.36 349,347,472.36
Accounts
1,930,958,598.05 1,930,958,598.05 1,930,958,598.05
payable
Other payables 53,671,773.90 53,671,773.90 53,671,773.90
Lease liabilities 6,902,254.62 8,401,587.43 1,937,137.81 3,097,878.18 3,366,571.44
Subtotal 11,960,941,696.89 12,458,188,813.01 5,388,775,574.92 6,308,405,386.75 761,007,851.34
(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.
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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 financial instruments, while the cash flow
interest risks arise from floating-rate 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 June 30, 2024, balance of borrowings with interest accrued at floating interest rate totaled 9,977.05 million yuan (December 31,
2023: 9,620.06 million yuan). If interest rates had been 50 basis points higher/lower and all other variables were held constant, the
Company’s profit before tax and equity will not be significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument resulted from changes
in exchange rate. The Company’s foreign currency risk relates mainly to foreign currency monetary assets and liabilities. When
short-term imbalance occurred to foreign currency assets and liabilities, the Company may trade foreign currency at market exchange
rate when necessary, in order to maintain the net risk exposure within an acceptable level.
Please refer to item VII 58 of the notes to the financial statements for details on foreign currency financial assets and liabilities at the
end of the period.
2. Hedging
(1) The Company conducts hedging business for risk management.
√ Applicable □Not applicable
1) During the period under review, the Company carried out foreign exchange hedging business, using forward settlement and
other derivative contracts as hedging instruments, and some of the expected purchases and sales transactions involving foreign
exchange cash flows as hedged items, as a means of hedging the risk of fluctuations in expected future cash flows arising from
expected purchases and sales borne by the Company as the prices in the foreign exchange market fluctuate.
2) During the period under review, the Company conducted foreign exchange hedging business, using forward settlement and
other derivative contracts as hedging instruments and certain foreign exchange deposits as hedged items, as a means of hedging the
Company's exposure to the risk of fluctuations in existing foreign exchange deposits in response to fluctuations in foreign
exchange market prices.
(2) The Company conducts eligible hedging operations and applies hedge accounting
□Applicable √ Not applicable
(3) The Company conducts hedging operations for risk management and expects to achieve its risk management objectives,
but does not apply hedge accounting
√ Applicable □Not applicable
Items Reasons for not applying hedge accounting Effect on the financial statements
The Company extensively uses foreign exchange forward
contracts and other tools for foreign exchange risk
management between USD, EUR, CNY, and JPY on a Derivative financial assets: 8,741,096.39yuan
foreign exchange global scale; because there is a certain offsetting Investment income: -7,317,634.93yuan
swap (FX) contract relationship between the exchange rate changes between Gains on changes in fair value: -
different currencies, which can, to a certain extent, have 4,445,860.49yuan
the same effect as that of hedge accounting, hedge
accounting has not been applied.
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3. Financial assets
(1) Classification of transfer methods
√ Applicable □Not applicable
Unit: RMB Yuan
Nature of financial Amount of financial Status of
Items Basis for determining derecognition
assets transferred assets transferred derecognition
The main risks and rewards, such as the
related interest rate risk and credit risk,
endorsements Receivables financing 734,164,568.98 Full derecognition
have been transferred to banks and third
parties
The main risks and rewards, such as the
related interest rate risk and credit risk,
discounted Receivables financing 252,523,552.48 Full derecognition
have been transferred to banks and third
parties
total 986,688,121.46
(2) Financial assets derecognized due to transfers
√ Applicable □Not applicable
Unit: RMB Yuan
Modalities for the transfer of Amount of financial assets Gains or losses related to
Items
financial assets derecognized derecognition
Receivables financing Endorsements/ discounted 986,688,121.46 -1,049,522.31
total 986,688,121.46 -1,049,522.31
(3) Transfer of financial assets that continue to be involved in the asset
□ Applicable √ Not applicable
XIII. Fair value disclosure
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: RMB Yuan
Fair value as at the balance sheet date
Items Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Recurring fair value measurement -- -- -- --
（I）Held-for-trading financial assets and other
8,741,096.39 8,741,096.39
non-current financial assets
1. Financial assets at fair value through profit or
8,741,096.39 8,741,096.39
loss
(1)derivative financial asset 8,741,096.39 8,741,096.39
Total liabilities at recurring fair value
8,741,096.39 8,741,096.39
measurement
II. Discontinued fair value measurements -- -- -- --
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 2 fair
value at recurring and non-recurring fair measurement
Fair value was determined at forward exchange rate published by Bank of China Limited at the balance sheet date.
3. 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. Fair value of short-term financial products with guaranteed principal and floating income and structured deposits was determined
based on their par value.
2. Fair value of bank acceptance was determined based on its par value.
3. As there is no significant change in the operating environment, operating condition and financial position of the invested entities
Zhejiang Second Pharma Co., Ltd. and Shanghai NewMargin Yongjin Eqiuty Enterprise (LP), the Company took investment cost as
the reasonable estimation of fair value.
XIV Related parties and related party transactions
1. Parent company
Holding Voting right
Place of
Parent company Business nature Registered capital proportion over the proportion over the
registration
Company Company
NHU Holding Xinchang,
Manufacturing 120.00 million 49.80% 49.80%
Group Co., Ltd. Zhejiang
Remarks on the parent company
The Company’s ultimate controlling party is the natural person Hu Baifan.
2. Subsidiaries of the Company
Please refer to item IX 1(1) of the notes to the financial statements for details on the Company’s subsidiaries.
3. Joint ventures and associates of the Company
Please refer to item VII 10 of the notes to the financial statements for details on the Company’s significant joint ventures and
associates.
Other joint ventures or associates that had related party transactions with the Company during the current period, or had balances
arising from related party transactions with the Company in prior periods, are as follows:
Related parties Relationships with the Company
Beijing Foyou Pharma Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Zhejiang Asen Pharmaceutical Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Zhejiang Deli Equipment Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Front Pharmaceutical PLC. Controlled by NHU Holding Group Co., Ltd.
Weifang NHU Real Estate Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Qionghai Heyue Property Services Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Qionghai Boao Holliyard Hotel Management Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
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Related parties Relationships with the Company
Shaoxing Heyue Property Services Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Xinchang County NHU Real Estate Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Zhejiang Jingshi Real Estate Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Shaoxing Yuexiu Education Development Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Shaoxing Jinghe Hotel Management Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Shaoxing Shangyu NHU Real Estate Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Suihua NHU Real Estate Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Zhejiang Yuexiu University of Foreign Languages Controlled by NHU Holding Group Co., Ltd.
Heilongjiang Haotian Corn Development Co., Ltd. Minority Shareholders of Subsidiaries
CHR.OLESEN A/S Minority Shareholders of Subsidiaries
Shaoxing Heyue Property Service Co., Ltd. Shangyu Branch Branch of Xinchang County NHU Real Estate Co., Ltd.
Other remarks：
As CHR.OLESEN A/S holds 25% equity of NHU Europe GmbH, the holding subsidiary of the Company’s subsidiary NHU
(Hong Kong) Trading Co., Ltd., the Company discloses transactions between CHR.OLESEN A/S and NHU Europe GmbH as well
as balances in related party transactions for the sake of prudence.
4. Related party transactions
(1) Purchase and sale of goods, rendering and receiving of services
Purchase of goods and receiving of services
Unit: RMB Yuan
Content of Current period Transaction Whether exceeds Preceding period
Related parties
transaction cumulative limit approved transaction limit comparative
Zhejiang Deli
Equipment Co., Purchase of goods 87,399,810.62 164,550,000.00 No 83,333,232.99
Ltd.
Zhejiang Chunhui Purchase of steam 53,776,671.24 60,694,568.26
Environmental
Protection Energy Waste disposal
330,547.17 147,459.89
Co., Ltd. service fees
Zhejiang Saiya
Chemical Purchase of goods 129,190,831.15 238,940,000.00 No 138,488,066.99
Materials Co., Ltd.
Zhejiang Asen
Pharmaceutical Purchase of goods 103,812.56 774,003.49
Co., Ltd.
Qionghai Boao
Catering and
Holliyard Hotel
accommodation 11,565.62 234,525.72
Management Co.,
services
Ltd.
Shaoxing Jinghe Catering and
4,290,000.00 No
Hotel Management accommodation 733,057.43 831,053.37
Co., Ltd services
Qionghai Heyue Property
Property Services management 108,074.04 219,042.13
Co., Ltd.
Shaoxing Heyue Property
Property Services management 214,360.00 203,704.00
Co., Ltd.
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Content of Current period Transaction Whether exceeds Preceding period
Related parties
transaction cumulative limit approved transaction limit comparative
Shaoxing Yuexiu
Education Receiving of
496.00
Development Co., services
Ltd.
Zhejiang Yuexiu
Receiving of
University of 4,388.00
services
Foreign Languages
Zhejiang Jingshi
Receiving of
Real Estate Co., 43,594.01
services
Ltd.
Changbai
Mountain
Protection and
Receiving of
Development Zone 17,368.50
services
Heyue Hotel
Management Co.,
Ltd
Heilongjiang
Haotian Corn
Purchase of goods 700,819.04 108,479.87
Development Co.,
Ltd.
Shandong Bin’an
Vocational Receiving of
2,674.53
Training School services
Co., Ltd.
Subtotal 272,630,511.38 407,780,000.00 285,041,695.24
Sale of goods and rendering of services
Unit: RMB Yuan
Related parties Content of transaction Current period cumulative Preceding period comparative
Zhejiang Deli Equipment Co., Ltd. Scrapped materials 77,876.10 92,969.09
Zhejiang Chunhui Environmental
Waste and scrap materials 53,097.35
Protection Energy Co., Ltd.
Zhejiang Asen Pharmaceutical Co., Pharmaceutical
6,735.85
Ltd. intermediates, test fees
Shandong Bin’an Vocational
Management Service Fee 23,372.54
Training School Co., Ltd.
Pharmaceutical
Front Pharmaceutical PLC. 353,982.31 575,409.92
intermediates, testing fees
Scrapped materials 71,388,365.86 71,867,299.71
Envalior NHU Engineering
Labor costs, etc. 12,933.42 413,070.59
Materials (Zhejiang) Co.,Ltd.
Utilities fees 802,824.33
Beijing Winsunny Pharmaceutical Pharmaceutical
47,169.81
Co., Ltd. intermediates
Total 71,833,157.69 73,881,949.19
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(2) Related party leases
The Company as the lessor:
Unit: RMB Yuan
Lease income recognized in Lease income recognized in
Lessees Types of assets leased
the current period preceding period
Envalior NHU Engineering Materials Land use right and
422,065.14 347,147.50
(Zhejiang) Co.,Ltd. buildings
Qionghai Boao Holliyard Hotel Land use right and
156,000.00 240,000.00
Management Co., Ltd. buildings
Land use right and
Zhejiang Jingshi Real Estate Co., Ltd. 326,238.53 266,666.67
buildings
Land use right and
Weifang NHU Real Estate Co., Ltd. 5,142.86 5,142.86
buildings
Land use right and
NHU Holding Group Co., Ltd. 16,513.76 16,513.76
buildings
The Company as the lessee:
Unit: RMB Yuan
Rental costs for short-term leases and leases of low-value assets
with simplified treatment (if applicable)
Lessors Types of assets leased
Lease expenses recognized Lease expenses recognized in
in the current period preceding period
Rental costs for short-term Rental costs for short-term
leases and leases of low-value leases and leases of low-value
847,107.96
assets with simplified assets with simplified
treatment (if applicable) treatment (if applicable)
(3) Related party guarantees
The Company as a guaranteed party
Unit: RMB Yuan
Amount Whether the guarantee
Guarantors Commencement date Maturity date
guaranteed is mature
353,000,000.00 December 03, 2020 September 21, 2025 No
NHU Holding Group Co.,
300,000,000.00 September 19, 2022 September 18, 2025 No
Ltd.
200,000,000.00 November 17, 2022 November 14, 2025 No
Total 853,000,000.00
(4) Key management’s emoluments
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Key management’s emoluments 5,926,687.50 5,533,632.28
(5) Other related party transactions
(1) In the current period, NHU EUROPE GmbH sold products amounting to 97.75 million yuan to Client B. At the end of the period,
balance of accounts receivable amounted to 41.22 million yuan.
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(2) According to the patent technology licensing agreement and the related equipment sales contract signed between the company
and Ningbo ZRCC NHU Biotechnology Co., Ltd., the Company provides Ningbo ZRCC NHU Biotechnology Co., Ltd. with
mature and reliable liquid methionine production technology developed, owned, or controlled by the company, including the
technical implementation license related to patents and proprietary technologies, and sells related equipment, which is produced
and supplied by Zhejiang Deli Equipment Co., Ltd. The total contract amount is agreed to be 442,917,139.59 yuan. As of June 30,
2024, the company has received 289,332,233.93 yuan, of which the amount for equipment had been fully recovered.
5. Balance due to or from related parties
(1) Balance due from related parties
Unit: RMB Yuan
Closing balance Opening balance
Items Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Envalior NHU
Accounts
Engineering Materials 38,334,572.21 1,916,728.61 41,837,233.16 2,091,861.66
receivable
(Zhejiang) Co.,Ltd.
Subtotal 38,334,572.21 1,916,728.61 41,837,233.16 2,091,861.66
Zhejiang Deli Equipment
Advance paid 45,926,357.35
Co., Ltd.
Subtotal 45,926,357.35
Shaoxing Heyue Property
18,400.00 920.00 18,400.00 920.00
Services Co., Ltd.
Zhejiang Chunhui
Other Environmental Protection 20,000.00 16,000.00 20,000.00 16,000.00
receivables Energy Co., Ltd.
Envalior NHU
Engineering Materials 1,244,660.08 62,233.00 711.08 35.55
(Zhejiang) Co.,Ltd.
Subtotal 1,283,060.08 79,153.00 39,111.08 16,955.55
(2) Balance due to related parties
Unit: RMB Yuan
Items Related parties Closing book balance Opening book balance
Zhejiang Deli Equipment Co., Ltd. 22,447,219.98 13,573,871.90
Zhejiang Saiya Chemical Materials
75,985,639.17 199,699.11
Co., Ltd.
Accounts payable Zhejiang Second Pharma Co., Ltd. 6,408.00 6,408.00
Heilongjiang Haotian Corn
221,823.07 110,873.46
Development Co., Ltd.
Zhejiang Chunhui Environmental
8,681,561.70 12,040,573.60
Protection Energy Co., Ltd.
Subtotal 107,342,651.92 25,931,426.07
Zhejiang Deli Equipment Co., Ltd. 13,009.64 13,009.64
Contract liabilities Ningbo ZRCC NHU Biotechnology
178,858,243.73
Co., Ltd.
Subtotal 13,009.64 178,871,253.37
Other payables Zhejiang Deli Equipment Co., Ltd. 3,500.00 3,740.00
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Related parties Closing book balance Opening book balance
Ningbo ZRCC NHU Biotechnology
12,750.00
Co., Ltd.
Subtotal 3,500.00 16,490.00
Zhejiang Deli Equipment Co., Ltd. 1,691.25 1,691.25
Other current liabilities Ningbo ZRCC NHU Biotechnology
13,180,653.87
Co., Ltd.
Subtotal 1,691.25 13,182,345.12
XV. Commitments and contingencies
1. Significant commitments
Significant commitments as at the balance sheet date
(I) Significant commitments
1. Forward exchange settlement contracts
Pursuant to “ISDA 2002 MASTER AGREEMENT” entered into between the Company and Bank of China (Hong Kong) Limited,
“ISDA 2002 MASTER AGREEMENT” entered into with DBS Bank (China) Limited, the GLOBAL CAPITAL MARKETS
TRANSACTION and the related transaction application form entered into with HSBC Bank (China) Limited Hangzhou Branch,
the NAFMII Master Agreement and Supplemental Agreement (No. Y161136) with the Bank of China Limited, Zhejiang Branch,
NAFMII Master Agreement and Supplemental Agreement (No. Y161136), as of June 30, 2024, the details of the Company's
undelivered forward settlement contracts are as follows:
Currency Amount Exchang Rate Settlement Date
10,000,000.00 7.2630 2024/7/10
10,000,000.00 7.2605 2024/7/16
10,000,000.00 7.2605 2024/7/16
10,000,000.00 7.2710 2024/7/24
10,000,000.00 7.2910 2024/7/3
USD 10,000,000.00 7.2790 2024/7/25
10,000,000.00 7.2735 2024/8/7
10,000,000.00 7.2705 2024/8/14
10,000,000.00 7.2665 2024/8/21
10,000,000.00 7.2665 2024/8/21
10,000,000.00 7.2625 2024/8/28
10,000,000.00 7.2915 2024/7/24
Subtotal 120,000,000.00
10,000,000.00 7.8300 2024/7/16
10,000,000.00 7.8286 2024/7/23
EUR 10,000,000.00 7.8257 2024/8/6
10,000,000.00 7.9070 2024/7/5
10,000,000.00 7.9000 2024/8/6
Subtotal 50,000,000.00
2. Letters of guarantee issued but undue
As of June 30, 2024, the undue letters of credit issued by the Company and its subsidiaries are as follows:
Issuing banks Applicants Type of L/G Amount Conditions for issuing
Bank of China Limited Performance Occupying credit line
The Company USD5,660.00
Xinchang Sub-branch guarantee
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Issuing banks Applicants Type of L/G Amount Conditions for issuing
Performance Occupying credit line
USD183,370.00
guarantee
Performance Occupying credit line
USD148,000.00
guarantee
Shandong NHU Occupying credit line
China Merchants Bank Financing
Vitamins Co., CNY2,120,000.00
Co., Ltd. Weifang Branch Guarantee
Ltd.
Shandong NHU
Bank of China Limited Performance Deposit of 8,183,592.83 yuan
Amino-acids Co., CNY8,183,592.83
Weifang Binhai Branch guarantee
Ltd.
3. Letters of credit issued but undue
As of June 30, 2024, the undue letters of credit issued by the Company and its subsidiaries are as follows:
Issuing banks Applicants Balance of L/C Conditions
USD19,622.40 Occupying credit line
USD1,669,836.00 Occupying credit line
Bank of China Limited Xinchang
The Company USD620,224.80 Occupying credit line
Branch
CNY100,000,000.00 Occupying credit line
CNY90,000,000.00 Occupying credit line
CNY90,000,000.00 Occupying credit line
China Merchants Bank Hangzhou
The Company CNY160,000,000.00 Occupying credit line
Jiefang Branch
CNY50,000,000.00 Occupying credit line
CITIC Bank Corporation Hangzhou
The Company CNY50,000,000.00 Occupying credit line
Branch
China Construction Bank
The Company CNY100,000,000.00 Occupying credit line
Corporation Xinchang Branch
Industrial and Commercial Bank of
The Company CNY85,000,000.00 Occupying credit line
China Limited Xinchang Branch
Agricultural Bank of China Limited
The Company CNY100,000,000.00 Occupying credit line
Xinchang Branch
Bank of China Limited Xinchang Zhejiang NHU Imports &
EUR185,500.00 Deposit of EUR 185,500.00
Branch Exports Co., Ltd.
Bank of China Limited Shangyu Zhejiang NHU Special
JPY4,230,000 Deposit of 220,000.00 yuan
Sub-branch Materials Co., Ltd.
China Merchants Bank Hangzhou Shangyu NHU Bio-Chem
CNY 150,000,000.00 Occupying credit line
Jiefang Branch Co., Ltd.
CNY25,000,000.00 Occupying credit line
China Merchants Bank Co., Ltd. Shandong NHU CNY26,224,348.26 Occupying credit line
Weifang Branch Pharmaceutical Co., Ltd. CNY20,895,878.61 Occupying credit line
CNY21,643,085.00 Occupying credit line
China Merchants Bank Co., Ltd. Shandong NHU Vitamins
CNY9,726,000.00 Occupying credit line
Weifang Branch Co., Ltd.
4. The “notes pool” business
Pursuant to the “Notes Pool Service Agreement on Yuntong Account of Bank of Communications” entered into between the
Company and Bank of Communications Co., Ltd., the Company pledged and endorsed bank acceptance to the depositary bank,
forming a pledged notes pool; the Company also opened a notes pool deposit account to provide guarantee for the credit granted
under the note pledge and to deposit the pledged bank acceptance for payments. The available credit line for pledge is the sum of
pledged notes and the actual balance of deposit account less pledged notes used. As stipulated in the agreement, the sum of
pledged notes and the balance of deposit account shall not be less than the pledged amount used for issuing notes. Pursuant to the
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2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
“Notes Pool Cooperation Agreement” entered into among the Company, its subsidiaries Shangyu NHU Bio-Chem Co., Ltd.,
Zhejiang NHU Pharmaceutical Co., Ltd., Zhejiang NHU Special Materials Co., Ltd., Shaoxing Yuchen New Materials Co., Ltd.,
Shandong NHU Pharmaceutical Co., Ltd., Shandong NHU Vitamins Co., Ltd., Shandong NHU Amino-acids Co., Ltd.,
Heilongjiang NHU Biotechnology Co., Ltd., Shandong NHU Fine Chemical Science and Technology Co., Ltd., Heilongjiang
Xinhao Thermal Power Co., Ltd., Xinchang NHU Vitamins Co., Ltd., Zhejiang Vityesun Animal Nutrition and Health Co., Ltd,
Zhejiang NHU Imports & Exports Co., Ltd.. and China Zheshang Bank Co., Ltd., the Company pledged assets pool or notes pool
for guarantee, and opened a notes deposit account to pay deposits at a certain percentage, with no specific agreement on the
amount of deposits. As of June 30, 2024, balance of pledged bank acceptance amounted to 207,267,158.31 yuan, deposits of notes
pool in China Zheshang Bank Co., Ltd. amounted to 55,388,324.90 yuan.
5. Besides the aforementioned events and assets with title or use right restrictions as stated in this section, the Company has no
other significant commitments to be disclosed as of the balance sheet date.
2. Contingencies
(1) There are no material contingencies that the Company is required to disclose, which should also be
explained
The Company has no material contingencies that require disclosure.
XVI. Events after the balance sheet date
1. Description of other events after the balance sheet date
As of the date of approval for issuing the financial statements, the Company has no other significant events after the balance sheet
date to be disclosed.
XVII. Other significant events
1. Segment information
(1) Identification basis and accounting policies for reportable segments
Reportable segments are identified according to the structure of the Company’s internal organization, management requirements and
internal reporting system, and based on business segments. Assets and liabilities shared by different segments are allocated among
segments proportionate to their respective sizes.
(2) Financial information of reportable segments
Unit: RMB Yuan
Pharmaceutical Inter-segment
Items Others Total
chemicals offsetting
Operating revenue 9,756,862,100.44 601,767,401.58 513,917,287.66 9,844,712,214.36
Including: Revenue from
6,309,180,450.59 396,115,898.44 513,917,287.66 6,191,379,061.37
contracts with customers
Operating cost 37,070,434,414.59 3,544,388,315.87 520,527,834.46 40,094,294,896.00
Total assets 13,215,121,264.78 1,616,679,435.34 520,527,834.46 14,311,272,865.66
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XVIII. Notes to the main items of the parent company's financial statements
1. Accounts receivable
(1) Age analysis
Unit: RMB Yuan
Ages Closing balance Opening balance
Within 1 year 747,305,554.92 659,625,316.20
Total 747,305,554.92 659,625,316.20
(2) Details on categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories Carrying Carrying
Provision Provision
Amount % to total Amount amount Amount % to total Amount amount
proportion proportion
Including：
Receivables
with provision
747,305, 37,365,2 709,940, 659,625, 32,981,2 626,644,
made on a 100.00% 5.00% 100.00% 5.00%
554.92 77.76 277.16 316.20 65.81 050.39
collective
basis
747,305, 37,365,2 709,940, 659,625, 32,981,2 626,644,
Total 100.00% 5.00% 100.00% 5.00%
554.92 77.76 277.16 316.20 65.81 050.39
Provision for bad debts by portfolio Category name: Accounts receivable with bad debt provision by age portfolio
Unit: RMB Yuan
Closing balance
Items
Book balance Provision for bad debts Provision proportion
Within 1 year 747,305,554.92 37,365,277.76 5.00%
Total 747,305,554.92 37,365,277.76 5.00%
Provision for bad debts on accounts receivable is made in accordance with the general model of expected credit losses, if any:
□Applicable √ Not applicable
(3) Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Opening Increase/Decrease
Categories Closing balance
balance Accrual Recovery/Reversal Write-off Others
Provision made
on a collective 32,981,265.81 4,384,011.95 37,365,277.76
basis
Total 32,981,265.81 4,384,011.95 37,365,277.76
153
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(4) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the total balance of
Debtors Book balance Provision for bad debts
accounts receivable (%)
Client 1 392,395,238.78 52.51% 19,619,761.94
Client 2 89,601,009.88 11.99% 4,480,050.49
Client 3 39,596,211.97 5.30% 1,979,810.60
Client 4 20,612,744.97 2.76% 1,030,637.25
Client 5 15,534,121.08 2.08% 776,706.05
Total 557,739,326.68 74.64% 27,886,966.33
2. Other receivables
Unit: RMB Yuan
Items Closing balance Opening balance
Other receivables 2,077,641,921.09 2,908,050,463.81
Total 2,077,641,921.09 2,908,050,463.81
(1) Dividend receivable
1) Details on categories
Unit: RMB Yuan
Items/Investees Closing balance Opening balance
loan splitting 2,162,676,254.98 3,038,350,000.01
Deposit Guarantee 13,158,059.00 13,376,459.00
Export Tax Refund 4,381,724.63 5,735,604.80
Employee reserve fund 5,010,000.00 2,436,000.00
Other 1,628,367.96 1,336,185.69
Accounts receivable in suspense 9,687.43
Total 2,186,864,094.00 3,061,234,249.50
2) Age analysis
Unit: RMB Yuan
Ages Closing book balance Opening book balance
Within 1 year (inclusive) 2,173,583,234.06 3,047,240,876.60
1-2 years 457,610.37
2-3 years 13,280,859.94 13,535,762.53
Over 3 years 25,770.00
3-4 years 12,455.81 162,455.81
4-5 years 13,268,404.13 13,347,536.72
Over 5 years 2,186,864,094.00 3,061,234,249.50
154
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
3) Disclosure by bad debt accrual method
Unit: RMB Yuan
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories Carrying Carrying
Provision amount Provision amount
Amount % to total Amount Amount % to total Amount
proportion proportion
Including：
Receivables
with provision 2,186,864, 109,222, 2,077,641, 3,061,234, 153,183,7 2,908,050,
100.00% 5.00% 100.00% 5.00%
made on a 094.00 172.91 921.09 249.50 85.69 463.81
collective basis
2,186,864, 109,222, 2,077,641, 3,061,234, 153,183,7 2,908,050,
Total 100.00% 5.00% 100.00% 5.00%
094.00 172.91 921.09 249.50 85.69 463.81
Provision for bad debts by portfolio Category name: Provision for bad debts by portfolio
Unit: RMB Yuan
Closing balance
Items
Book balance Provision for bad debts Provision proportion
Land bond receivable
12,518,762.50
portfolio
Export tax refund receivable
4,381,724.63
portfolio
Ageing portfolio 2,169,963,606.87 109,222,172.91 5.03%
Including:1-2 years 2,169,201,509.43 108,460,075.47 5.00%
2-3 years 20.00%
Over 3 years 762,097.44 762,097.44 100.00%
Total 2,186,864,094.00 109,222,172.91
Provision for bad debts is made on the basis of a general model of expected credit losses:
Unit: RMB Yuan
Phase I Phase II Phase III
Provision for bad debts Lifetime expected Lifetime expected Total
12month expected
credit losses (credit not credit losses (credit
credit losses
impaired) impaired)
Opening balance 152,075,263.59 91,522.07 1,017,000.03 153,183,785.69
Opening balance in the
current period
Provision made in the
-43,615,188.12 -91,522.07 -254,902.59 -43,961,612.78
current period
Closing balance 108,460,075.47 0.00 762,097.44 109,222,172.91
The basis for the classification of each stage and the percentage of provision for bad debts:
Accounts aged less than one year are classified as stage I, those aged 1-2 years are classified as stage II, and those aged more than
2 years are classified as stage III.
Changes in the carrying amount of the provision for losses that are significant in terms of the amount of change during the period.
□Applicable √Not Applicable
155
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
4) Provisions made, collected or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB Yuan
Increase/Decrease
Categories Opening balance Closing balance
Accrual Recovery/Reversal Write-off Others
Portfolio grouped by
153,183,785.69 -43,961,612.78 109,222,172.91
ages
Total 153,183,785.69 -43,961,612.78 109,222,172.91
5) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the
Nature of total balance of Provision for bad
Debtors Book balance Ages
receivables other receivables debts
(%)
Heilongjiang NHU Within 1 year
Call loans 1,129,437,562.47 51.65% 56,471,878.12
Biotechnology Co., Ltd. (inclusive)
Shandong NHU Fine
Within 1 year
Chemical Science and Call loans 750,685,903.85 34.33% 37,534,295.19
(inclusive)
Technology Co., Ltd.
Within 1 year
Xinchang NHU Vitamins Co. Call loans 163,761,872.33 7.49% 8,188,093.62
(inclusive)
Shandong NHU Holdings Within 1 year
Call loans 49,233,158.10 2.25% 2,461,657.91
Co., Ltd (inclusive)
Zhejiang NHU Special Within 1 year
Call loans 45,383,812.49 2.08% 2,269,190.62
Materials Co., Ltd. (inclusive)
Total 2,138,502,309.24 97.80% 106,925,115.46
3. Long-term equity investments
Unit: RMB Yuan
Closing balance Opening balance
Items Provision Provision
Carrying
Book balance for Book balance for Carrying amount
amount
impairment impairment
Investments in
10,722,058,350.12 10,722,058,350.12 10,176,078,842.12 10,176,078,842.12
subsidiaries
Investments in
associates and 670,892,788.97 670,892,788.97 502,157,305.30 502,157,305.30
joint ventures
Total 11,392,951,139.09 11,392,951,139.09 10,678,236,147.42 10,678,236,147.42
156
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(1) Investments in subsidiaries
Unit: RMB Yuan
Opening Increase/Decrease Closing
Opening carrying balance of Closing carrying balance of
Investees
amount provision for Investments Investments Provision for amount provision for
impairment Others impairment
increased decreased impairment
Xinchang NHU Vitamins
149,407,990.15 149,407,990.15
Co., Ltd.
Zhejiang NHU Import &
13,500,000.00 13,500,000.00
Export Co., Ltd.
Qionghai Boao Lidu Real
54,020,492.00 54,020,492.00
Estate Co., Ltd.
Zhejiang Vityesun
Animal Nutrition and 5,000,000.00 5,000,000.00
Health Co., Ltd.
Shangyu NHU Bio-Chem
414,100,091.44 414,100,091.44
Co., Ltd.
NHU (Hong Kong)
16,406,160.00 16,406,160.00
Trading Co., Ltd.
Zhejiang NHU
480,000,000.00 480,000,000.00
Pharmaceutical Co., Ltd.
Zhejiang NHU Special
554,844,108.53 554,844,108.53
Materials Co., Ltd.
Shandong NHU Amino-
5,800,000,000.00 5,800,000,000.00
acids Co., Ltd.
Shandong NHU Holdings
200,000,000.00 200,000,000.00
Co., Ltd.
Heilongjiang NHU
1,300,000,000.00 600,000,000.00 1,900,000,000.00
Biotechnology Co., Ltd.
Shandong NHU
586,000,000.00 586,000,000.00
Pharmaceutical Co., Ltd.
Shandong NHU Fine
Chemical Science and 590,000,000.00 590,000,000.00
Technology Co., Ltd.
NHU Singapore PTE.
12,800,000.00 12,800,000.00
LTD.
Total 10,176,078,842.12 600,000,000.00 54,020,492.00 10,722,058,350.12
(2) Investments in associates and joint ventures
Unit: RMB Yuan
Increase/Decrease
Opening
balance Cash Closing
Adjustm
Opening of Inves Investment dividend Closing balance of
Invest ent in Provisio
Investees carrying provision tment income Changes / Profit carrying provision
amount for ments other n for
s recognized in other declared Others amount for
impairme increas compreh impairm
decre under equity equity for impairment
nt ed ensive ent
ased method distribut
income
ion
I. joint venture
Ningbo Zhenhai
Refining and
Chemical 216,166,9 155,672 356,189,413.
-15,649,565.41
Xinhecheng 78.49 ,000.00 08
Biotechnology Co.,
Ltd
216,166,9 155,672 356,189,413.
Subtotal 78.49 ,000.00
-15,649,565.41
08
II. Associates
Zhejiang Chunhui
Environmental 281,395,7 - 309,733,713.
28,351,365.91
Protection Energy 24.54 13,377.44 01
Co., Ltd.
Zhejiang Sanbo
Polymer Co., Ltd
Anhui Yingna
4,594,602
Weixun Technology .27
375,060.61 4,969,662.88
Co., Ltd
285,990,3 - 314,703,375.
Subtotal 26.81
28,726,426.52
13,377.44 89
502,157,3 155,672 - 670,892,788.
Total 05.30 ,000.00
13,076,861.11
13,377.44 97
157
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
The recoverable amount is determined as the net of fair value less costs of disposal
□Applicable √Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
□Applicable √Not applicable
4. Operating revenue/Operating cost
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Revenue Cost Revenue Cost
Main operations 1,648,027,716.97 1,455,263,461.14 1,438,268,120.92 1,261,740,406.31
Other operations 30,583,786.52 23,411,419.87 29,381,770.87 24,923,360.59
Total 1,678,611,503.49 1,478,674,881.01 1,467,649,891.79 1,286,663,766.90
Including: Revenue
from contracts with 1,676,857,697.21 1,478,180,865.14 1,465,736,240.87 1,286,663,766.90
customers
Information on the breakdown of operating revenues and operating costs:：
Unit: RMB Yuan
Categories of contracts Revenue Cost
By product
Including:
Nutrition 1,648,027,716.97 1,455,263,461.14
Others 28,829,980.24 22,917,404.00
Subtotal 1,676,857,697.21 1,478,180,865.14
By operating region
Including:
Domestic 1,099,410,499.47 936,602,333.77
Overseas 577,447,197.74 541,578,531.37
Subtotal 1,676,857,697.21 1,478,180,865.14
By revenue recognition time
Including:
Transferred at a point in time 1,676,857,697.21 1,478,180,865.14
Subtotal 1,676,857,697.21 1,478,180,865.14
Information related to transaction price allocated to the remaining performance obligations:
As of June 30, 2024, revenue corresponding to performance obligations for which the Company has entered into contracts but not
yet performed or fulfilled amounted to 520.78 million yuan, of which, 520.78 million yuan is expected to be recognized as revenue
in 2024.
5. Investment income
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Investment income from long-term equity investments under
1,501,500,000.00 1,390,000,000.00
cost method
Investment income from long-term equity investments under
13,076,861.11 17,189,195.23
equity method
Investment income from disposal of long-term equity 28,770,508.00
158
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Current period cumulative Preceding period comparative
investments
Interest income from call loans 42,903,111.48 50,158,644.31
Returns on Wealth Management Products and Structured
2,735,849.06
Deposits
Total 1,586,250,480.59 1,460,083,688.60
XIX. Supplementary information
1. Schedule of non-recurring profit or loss
√ Applicable □ Not applicable
Unit: RMB Yuan
Items Amount Remarks
Gains or losses on disposal of non-current assets, including write-off of provision for
-1,128,442.54
impairment
Government grants included in profit or loss (excluding those closely related to operating
activities of the Company, satisfying government policies and regulations, and continuously 59,818,451.66
enjoyed with certain quantity or quota based on certain standards)
Gains or losses on changes in fair value of held-for-trading financial assets and held-for-trading
financial liabilities, and investment income from disposal of held-for-trading financial assets
-4,445,860.49
and held-for-trading financial liabilities, excluding those arising from hedging business related
to operating activities
Gains or losses on assets consigned to the third party for investment or management 808,128.72
Other non-operating revenue or expenditures -203,096.63
Less: Enterprise income tax affected 7,854,767.77
Non-controlling interest affected (after tax) 95,237.69
Total 46,899,175.26
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□ Applicable √ Not applicable
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.
Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria for
Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss
□ Applicable √ Not applicable
2. ROE and EPS
EPS (yuan/share)
Profit of the reporting period Weighted average ROE (%)
Basic EPS Diluted EPS
Net profit attributable to shareholders
8.58% 0.71 0.71
of ordinary shares
Net profit attributable to shareholders
of ordinary shares after deducting 8.40% 0.70 0.70
non-recurring profit or loss
159
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
3. Differences in accounting data under Chinese accounting standards and overseas accounting standards
(1) Difference in net profit and net assets in financial statements disclosed respectively under IFRS
Standards and Chinese accounting standards
□ Applicable √ Not Applicable
(2) Difference in net profit and net assets in financial statements disclosed respectively under overseas
accounting standards and Chinese accounting standards
□ Applicable √ Not Applicable
(3) Explanation of the reasons for differences in accounting data under domestic and foreign accounting
standards. If adjusting for differences in data already audited by overseas auditing institutions, the name
of the overseas institution should be indicated
□ Applicable √ Not Applicable
4. Other
(1) Calculation process for weighted average return on net assets
Unit: RMB Yuan
Current period
Items Serial number
cumulative
Net profit attributable to shareholders of listed company A 2,204,361,642.96
Non-recurring profit or loss B 46,899,175.26
Net profit attributable to shareholders of listed company after deducting
C=A-B 2,157,462,467.70
non-recurring profit or loss
Opening net assets attributable to the Company's ordinary shareholders D 24,804,662,320.99
Net assets attributable to ordinary shareholders of the Company arising
E
from the issue of new shares or conversion of debt to equity, etc.
Cumulative number of months from the month following the month in
F
which the net assets were added to the end of the reporting period
Decrease in net assets attributable to the Company's common shareholders
G 1,383,039,756.00
as a result of repurchases or cash dividends, etc.
Cumulative number of months from the month following the month in
H 1
which net assets were reduced to the end of the reporting period
Translation differences in foreign currency statements I1 2,144,278.96
Cumulative number of months from the month following
the month of increase or decrease in net assets to the end of J1 3.00
the reporting period
other
Special reserve I2 30,166,768.34
Cumulative number of months from the month following
the month of increase or decrease in net assets to the end of J2 3.00
the reporting period
Number of months in the reporting period K 6
L= D+A/2+ E×F/K-
Weighted average net assets 25,692,492,040.12
G×H/K±I×J/K
Weighted average ROE M=A/L 8.58%
Weighted average ROE after extraordinary gains and losses N=C/L 8.40%
160
2024 Semi-Annual Report of Zhejiang NHU Co., Ltd.
（2） Calculation process of basic earnings per share and diluted earnings per share
1) Basic earnings per share calculation process
Unit: RMB Yuan
Current period
Items Serial number
cumulative
Net profit attributable to shareholders of listed company A 2,204,361,642.96
Non-recurring profit or loss B 46,899,175.26
Net profit attributable to shareholders of listed company after deducting
C=A-B 2,157,462,467.70
non-recurring profit or loss
Total number of shares at the beginning of the period D 3,090,907,356.00
Net profit attributable to shareholders of listed company E
Increase in the number of shares by issuing new shares or converting
F
debt to equity, etc.
Cumulative number of months from the month following the increase in
G
shares to the end of the reporting period
Reduction in the number of shares due to buybacks, etc. H
Cumulative number of months from the month following the reduction
I
of shares to the end of the reporting period
Number of drawdowns during the reporting period J
Number of months in the reporting period K 6
Weighted average number of ordinary shares outstanding L=D+E+F×G/K-H×I/K-J 3,090,907,356.00
Basic EPS M=A/L 0.71
Basic EPS after extraordinary gains and losses N=C/L 0.70
2) Calculation of diluted earnings per share
The process of calculating diluted earnings per share is the same as that for basic earnings per share.
161
