2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Zhejiang NHU Company Ltd.
2021 Semi-Annual Report
August, 2021
1
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Section I Important Notes, Contents and Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors
and senior executives of the Company hereby guarantee that the information
presented in this semi-annual report is authentic, accurate, complete and free of
any false records, misleading statements or material omissions, and they will
bear joint and several liabilities for such information.
Hu Baifan, the Company’s legal representative, Shi Guanqun, the person in
charge of finance and accounting work, and Wang Xiaobi, the person in charge
of accounting institution (Accounting Officer) hereby declare and warrant that
the financial statements in the semi-annual report are authentic, accurate and
complete.
All directors attended the meeting of the Board of Directors for deliberation
of this annual report.
Profit distribution proposal of semi-annual report or proposal on
capitalization of capital reserves reviewed by the Board of Directors in the
reporting period: The Company will not distribute cash dividend, distribute
bonus shares, or distribute shares from capital reserve during the current
reporting period.
Note:
This document is a translated version of the Chinese version 2021 Semi-Annual Report
（“2021 年半年度报告”）, and the published announcements in the Chinese version shall
prevail. The complete published Chinese 2021 semi-Annual Report maybe obtained at
www.cninfo.com.cn.
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Contents
Section I Important Notes, Contents and Definitions ................................................... 2
Section II Company Profile and Key Financial Indicators ........................................... 5
Section III Management Discussion and Analysis ........................................................ 9
Section IV Corporate Governance .............................................................................. 27
Section V Environmental and Social Responsibilities ................................................ 27
Section VI Significant Events ..................................................................................... 38
Section VII Changes in Shares and Information about Shareholders ......................... 48
Section VIII Information of Preferred Shares ............................................................. 56
Section IX Situation on Corporate Bonds ................................................................... 57
Section X Financial Report ......................................................................................... 58
Section XI Documents Available for Reference ....................................................... 200
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Definitions
Item Refers To Definitions
Company, the Company and NHU Refers To Zhejiang NHU Company Ltd.
CSRC Refers To China Securities Regulatory Commission
Zhejiang Regulatory Bureau of China Securities Regulatory
Zhejiang Securities Regulatory Bureau Refers To
Commission
PPS Refers To Polyphenylene sulfide
PPA Refers To Poly phthalamide
COD Refers To chemical oxygen demand
NOX Refers To nitrogen oxides
SO Refers To Sulphur dioxide
VOC Refers To volatile organic compound
Xinchang Vitamins Refers To Xinchang NHU Vitamins Co., Ltd.
Zhejiang VYS Refers To Zhejiang Vityesun Animal Nutrition And Health Co., Ltd.
Boao Lidu Refers To Qionghai Boao Lidu Real Estate Co., Ltd.
NHU Import & Export Refers To Zhejiang NHU Import&Export Co., Ltd.
Shangyu Bio-Chem Refers To Shangyu NHU Bio-Chem Co., Ltd.
Zhejiang Pharmaceutical Refers To Zhejiang NHU Pharmaceutical Co., Ltd.
Zhejiang Special Materials Refers To Zhejiang NHU Construction Material Co., Ltd.
Shandong Pharmaceutical Refers To Shandong NHU Pharmaceutical Co., Ltd.
Shandong Vitamins Refers To Shandong NHU Vitamins Co., Ltd.
Shandong NHU Fine Chemical Science and Technology CO.,
Shandong Jinghua Refers To
LTD.
Shandong Amino-acids Refers To Shandong NHU Amino-acids Co., Ltd.
Shandong Holding Refers To Shandong NHU Holdings Co., Ltd.
Heilongjiang Biological Technology Refers To Heilongjiang NHU Biotechnology Co., Ltd.
NHU (Hong Kong) Refers To NHU （HONGKONG） TRADING COMPANY LIMITED
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2021 Semi-Annual Report of Zhejiang NHU Company 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 Chinese (If
NHU
any)
Company Name in Foreign Language
ZHEJIANG NHU COMPANY LTD.
(If any)
Company Abbreviation in Foreign
NHU
Language (If any)
Legal Representative Hu Baifan
II. Contact Person and Contact Information
Item Board Secretary Securities Affairs Representative
Name Shi Guanqun 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. (0575)86017157 (0575)86017157
Fax (0575)86125377 (0575)86125377
E-mail sgq@cnhu.com 002001@cnhu.com
III. Other Information
1. Company’s Contact Information
Whether the Company’s registered address, office address, postal code, website and e-mail address has changed during the reporting
period
□ Applicable √ Not applicable
The Company’s registered address, office address, postal code, website and e-mail address have not changed during the reporting
period, which can be found in the 2020 Annual Report.
2. Information Disclosure and Location
Whether information disclosure and location has changed during the reporting period
□ Applicable √ Not applicable
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
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 2020 Annual Report.
IV. Key Accounting Data and Financial Indicators
Whether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not
√ Yes □ No
Retroactive adjustment or restatement of reasons
Consolidated under the Same Control
Increase/Decrease of the
Current Reporting Period
The Current The Same Period of the Previous Year Compared with the Same
Item
Reporting Period Period of the Previous
Year
Before adjustment After adjustment After adjustment
Operating Revenue (RMB) 7,254,221,638.01 5,290,274,214.99 5,303,165,502.25 36.79%
Net Profit Attributable to
Shareholders of the Listed Company 2,408,499,133.50 2,211,899,379.72 2,208,930,277.20 9.03%
(RMB)
Net Profit Attributable to
Shareholders of the Listed Company
2,279,454,655.63 2,114,837,105.23 2,114,837,105.23 7.78%
after Deducting Non-recurring Gains
and Losses (RMB)
Net Cash Flow Generated by
2,271,157,481.77 1,147,083,367.93 1,127,560,220.11 101.42%
Operational Activities (RMB)
Basic Earnings per Share
0.93 0.86 [Note] 0.86 [Note] 8.14%
(RMB/Share)
Diluted Earnings per Share
0.93 0.86 [Note] 0.86 [Note] 8.14%
(RMB/Share)
Decrease 0.29
Weighted Average ROE 12.02% 12.44% 12.31%
percentage point
Increase/Decrease at the
End of the Current
At the End of the
At the End of the Previous Year Reporting Period
Item Current Reporting
Compared with the End
Period
of the Previous Year
Before adjustment After adjustment After adjustment
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Total Assets (RMB) 33,647,974,809.91 30,897,007,799.54 30,897,007,799.54 8.90%
Net Assets Attributable to
Shareholders of the Listed Company 20,231,380,128.84 19,336,254,922.95 19,336,254,922.95 4.63%
(RMB)
Note: Shaoxing Rossence Material Technology Co.,Ltd and Shaoxing Qinjin New Materials Co., Ltd. were included in the scope of
the Company’s consolidated statements on September 1, 2020, and Weifang Jinghe Real Estate Co., Ltd was included in the scope of
the Company’s consolidation on November 1, 2020, and the Company made retroactive adjustments to the relevant financial
statement data.
[Note] After the implementation of the Company’s profit distribution plan for 2020, the Company’s share capital increased from
2,148,662,300.00 shares to 2,578,394,760.00 shares, and the above earnings per share for the same period of the previous year was
recalculated based on the adjusted share capital.
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences of net profits and net assets in the financial reports disclosed according to the international
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between International Financial Reporting Standards (IFRS)
and China Accounting Standards in the reporting period
2. Differences between the net profits and net assets in the financial reports disclosed according to the
overseas accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between Overseas Accounting Standards and China
Accounting Standards in the reporting period.VI. Non-recurring Gains and Losses Items and Their Amounts
VI. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount
Profits or losses from disposal of non-current assets (including
1,065,564.79
the write-off for the accrued impairment of assets)
The government subsidies included in the current profits and
losses (excluding the government subsidies closely related to
76,380,676.96
regular businesses of the Company and issued in the quota or
quantity based on the national standards)
Gains or losses from investment or asset management entrusted
29,617,969.78
to others
Profits and losses resulting from the changes in fair value for 23,301,029.03
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
holding trading financial assets, derivative financial assets and
trading financial liabilities, derivative financial liabilities and
investment income from disposal of trading financial assets,
derivative financial assets, trading financial liabilities,
derivative financial liabilities, and other obligatory right
investment, excluding the effective hedging businesses related
to the regular business operation of the Company
Non-operating revenue and expenses other than the above 9,566,525.91
Less: Impact of income tax 10,887,288.60
Total 129,044,477.87
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information Disclosure for
Companies Offering Their Securities to Public - Non-recurring Gains and Losses, or non-recurring gains and losses items listed in the
said document defined as recurring ones, please specify the reasons.
□ Applicable √ Not applicable
In the reporting period, the Company did not define any non-recurring gains and losses items defined and listed in the No. 1
Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Gains and
Losses, as recurring gains and losses items.
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Section III Management Discussion and Analysis
I. The Principal Business of the Company during the Reporting Period
NHU is a national high-tech enterprise focusing on the production and sales of nutritional health products and new polymer
materials. It has been innovating and developing around the business fields of nutritional products, aroma chemicals, and new
polymer materials, and striving to build “chemical+” and “biological+” platforms. It has been constantly enriching its products
category and developing functional chemicals. NHU adheres to the customer-oriented philosophy, takes customers as the center to
create value, providing solutions for over 100 countries and regions across the world, continuously improving quality of human life
with high-quality, healthy and green products, and creating sustainable value with win-win development. With leading technologies,
scientific management and sincere services, NHU has become a world-renowned supplier of vitamins and a large national
manufacturer of aroma chemicals.
I. Main Products and Applications
Nutritional products: NHU’s main vitamin products include vitamin E, vitamin A, vitamin C, DL-methionine, vitamin D3,
Vitamin H ,coenzyme Q10 and astaxanthin, which are mainly used as feed and food additives to enhance animal health and boost
profit of breeding industry, as well as to provide the energy and nutrition needed for human being. NHU’s vitamin products, as the
main business, have a substantial market share, with a prominent industrial position, famous brand advantages, and the market
standing of leading domestically and being well-known globally.
Aroma chemicals: NHU’s main aroma chemical products include : linalool, citral, and cis-3-hexenol series, and methyl
dihydrojasmonate, raspberry ketone and ligustral, covering fragrance and flavor market. Its main aroma chemical products currently
focus on the global market, with strong competitiveness, a high market share and relatively stable market structure.
New polymer materials: NHU’s main new material products include PPS and PPA, which are characterized by high
temperature resistance, corrosion resistance and strong stability. At present, PPS series products have successfully entered the
mainstream market application fields such as automobiles, electronic appliances and environmental protection.
II. Major Operations during the Reporting Period
During the reporting period, the Company has been actively taking countermeasures to seize market opportunities and maintain
a positive growth trend in production and operation facing the continuous impact of the global pandemic and changes in the market.
Compared with the corresponding period of last year, in the first half of 2021, NHU has achieved RMB 7,254,221,638.01 operating
income, with an increase of 36.79%; RMB 2,811,545,441.60 total profit, with an increase of 9.82%; and RMB 2,408,499,133.50 net
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
profit attributable to the shareholders of the listed company, with an increase of 9.03%.
1. Collaborations to ensure the orderly progress of production and operation. During the report period, the market department of
NHU adjusted sales strategy based on the market situation in a timely manner. The production, procurement and other functional
departments worked closely with the sales department to improve the response to customers' demand. By establishing strategic
cooperation with shipping companies and predicting the market and locking space in advance, NHU has ensured to the stable
delivery of products during special periods. And by establishing a key raw material database for weekly follow-up, implement
strategic reserves, strategic purchases and other forms, NHU has ensured to the stable supply of bulk raw materials. All such
measures guaranteed the stable operation of sales business.
2. Promoting the construction of key projects and research subject orderly. During the report period, NHU have been
improving the quality and efficiency of its products and their competitiveness through process optimization and internal tapping;
NHU’s 100,000-ton plant of the 250,000-ton-per-year DL-methionine phase II project, the biofermentation project (Phase I) and
other new projects were in stable production; NHU’s 150,000-ton plant of the 250,000-ton-per-year DL-methionine phase II project
was on schedule and the overall progress was under control. NHU has been steadily advancing other key R&D topics according to
the planned nodes, with its innovative achievements recognized by the society. The project of “The Key Innovation and
Industrialization Technology for Tailoring Supported Catalysts in the Micro-nano dimension” won the first prize of Technological
Invention in Zhejiang Province in 2020.
3. Continuously consolidating the management foundation and improving management efficiency. During the reporting period,
NHU gave full play to the advantages of overall capital operation to ensure the funds required for operation, project construction and
investment. At the same time, NHU also optimized the process information system, sorted out and optimized core business processes
to improve operational efficiency, launched the equipment integrity management system, promoted the HSE management system
pilot and intelligent manufacturing system construction, optimized the company organization, promoted the rotation and training
mechanism, and innovated an efficient salary and performance management model to stimulate the initiative of each level.
There was not any significant change on NHU’s main business and business model during the reporting period.
II. Core Competitiveness Analysis
1. Advantages of Corporate Culture and the Management Team. The Company advocates the purpose of “creating wealth,
achieving employees and benefiting society”, the values of “new, harmony, union”, the operation philosophy of “wealth creation,
balance and sustainability”, the corporate spirit of “seeking truth, innovation, quality and efficiency”, innovates and improves its
management, thereby guaranteeing the stable development of the enterprise. Under the influence of the “teacher culture”, the
Company advocates that the sage is the teacher, the competent is the teacher, being modest, and educating carefully. The human
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
resource management is transformed into the human resource business support service. The talent supply chain construction and the
leader team construction are effectively promoted. Business and professional leading talents are recruited and undergraduates are
systematically trained and reserved by introducing the business-oriented and specialty-oriented talents. The talent cultivation
measures such as employee assignment, project training and work shift are extensively implemented. A talent team which is
pioneering, innovative, pragmatic and efficient and an excellent management team which is long-term, stable and with high sense of
responsibility are developed, promoting continuous, healthy and rapid development of the Company.
2. Advantages of Technical Resources and Technology Research and Development The Company insists on the research and
development philosophy of “demand-oriented, internal and external integration”, integrates global resources, and closely cooperates
with famous domestic and foreign research institutes and universities such as Zhejiang University, Chinese Academy of Sciences,
Jiangnan University, China Agricultural University, Zhejiang University of Technology, and CysBio biotechnology company of
Denmark to jointly conduct prospective studies and application field studies on chemicals. The Company has developed research and
development institutes such as state-recognized enterprise technology center, national-level post-doctoral scientific research
workstation, and national model academician and expert workstation, set up laboratories such as bio-pharmaceutical laboratory,
supercritical reaction laboratory and engineering equipment research center, equipped cutting-edge research and development
instruments such as 600M NMR with cryoprobes, and mastered leading domestic technologies such as supercritical reaction, high
vacuum distillation and continuous reaction.
3. Advantages of processes and equipment. The Company values effective combination of processes and equipment, has set up
the process equipment research institute to cooperate with domestic and foreign famous engineering companies and scientific
research institutes. The Company keeps improving the quality of processes and equipment from all rounds through introduction,
digestion, absorption and re-innovation of advanced technologies. The Company is dedicated to large-scale, airtight, continuous and
automated transformation of equipment in process and equipment research and development, to save energy, reduce emissions,
improve the labor productivity and product quality, increase the intrinsic safety of the production process, lower the cost and 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.
4. Brand Advantages The Company insists on “good faith”, and has set the goals of serving the customers and creating industry
values together with the customers for years. The Company consistently provides the customers with secure and superior products as
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
well as efficient and satisfactory services through technical innovation. After years of development and accumulation, the Company
has been awarded several honorary titles in the global fine chemical industry, such as one of top ten feed additive brands in China and
one of large-scale vitamin feed additive enterprises in China. The favorable reputation in the market has laid a solid foundation for
the healthy and persistent development of the Company.
III. Main Business Analysis
Refer to “I. The Principal Business of the Company during the Reporting Period”
Year-on-year changes in key financial data
Unit: RMB
Year-on-year
The Current The Same Period of
Item increase or Reasons for Changes
Reporting Period the Previous Year
decrease
Mainly due to the increase in sales volume
Operating Income 7,254,221,638.01 5,303,165,502.25 36.79%
of vitamin E and DL-methionine products.
Mainly due to the increase in sales volume
of vitamin E and DL-methionine pruducts
Operating Cost 3,755,325,045.02 2,143,809,060.49 75.17% and adjusting freight and transportation
premium into operating costs for
implementing the new income standard.
Mainly due to the impact of the
implementation of the new income
Sales Expenses 55,479,574.90 132,057,487.52 -57.99% standard, adjusting freight and
transportation premium into operating
costs.
Administration Mainly due to the increase in depreciation.
187,505,914.10 183,896,476.30 1.96%
Expenses
Mainly due to the increase in loan interests
Financial and the increase in foreign exchange losses
144,530,139.09 76,306,971.80 89.41%
Expenses which caused by the fluctuation in foreign
exchange rate.
Income Tax Mainly due to the increase of taxable
394,709,861.22 345,891,461.03 14.11%
Expense income
Research and
Mainly due to the increase of material
Development 351,532,764.55 219,152,938.63 60.41%
inputs and salary
Expense
Net Cash Flow Mainly due to the increase of accordance
Generated by 2,271,157,481.77 1,127,560,220.11 101.42% with operating income growth, meanwhile
Operating sales collection increases during the
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Year-on-year
The Current The Same Period of
Item increase or Reasons for Changes
Reporting Period the Previous Year
decrease
Activities current reporting period
Net Amount of
Cash Flow Mainly due to the decrease of the expired
Generated by -1,066,449,910.49 1,519,123,736.14 -170.20% bank financial products in the current
Investment reporting period
Activities
Net Cash Flow
Generated by
351,773,744.86 -649,397,506.59 154.17% Mainly due to the increase of loans
Financing
Activities
Net Additions to
Mainly due to the decrease in expired bank
Balance of 1,512,856,721.48 2,027,758,341.46 -25.39%
financial products
Equivalents
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
The Current Reporting Period The Same Period of the Previous Year Year-on-year
Item Proportion in Proportion in increase or
Amount Amount
Operating Income Operating Income decrease
Total Revenue 7,254,221,638.01 100% 5,303,165,502.25 100% 36.79%
By Industry
Pharmaceutical 6,758,771,833.00 93.17% 36.71%
4,943,797,504.30 93.22%
Chemicals
Others 495,449,805.01 6.83% 359,367,997.95 6.78% 37.87%
By Product
Nutritional 5,452,151,744.71 75.16% 3,720,891,315.66 70.16% 46.53%
Products
Aroma Chemicals 1,126,980,745.24 15.53% 1,052,666,046.25 19.85% 7.06%
New Polymer 418,367,560.13 5.77% 324,009,632.99 6.11% 29.12%
Materials
Others 256,721,587.93 3.54% 205,598,507.35 3.88% 24.87%
By Region
Domestic Sales 3,295,559,229.13 45.43% 2,056,800,286.67 38.78% 60.23%
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Export Sales 3,958,662,408.88 54.57% 3,246,365,215.58 61.22% 21.94%
Industry, product, or region accounting for more than 10% of the Company’s operating revenue or profit
√ Applicable □ Not applicable
Unit: RMB
Increase or
Decrease of Increase and Increase or
Operating Decrease of Decrease of
Gross Revenue Operating Gross Margin
Item Operating Income Operating Cost
Margin Compared with Cost over the Compared with
the Same Same Period the Same Period
Period of Last of Last Year of Last Year
Year
By Industry
Pharmaceutical Decrease 11.08
6,758,771,833.00 3,390,108,464.20 49.84% 36.71% 75.45%
Chemicals percentage point
By Product
Nutritional Decrease 11.34
5,452,151,744.71 2,613,224,909.87 52.07% 46.53% 91.96%
Products percentage point
Decrease 12.25
Aroma Chemicals 1,126,980,745.24 625,409,670.40 44.51% 7.06% 37.41%
percentage point
By Region
Decrease 14.29
Domestic Sales 3,295,559,229.13 1,898,486,520.10 42.39% 60.23% 111.80%
percentage point
Decrease 8.48
Export Sales 3,958,662,408.88 1,856,838,524.92 53.09% 21.94% 48.85%
percentage point
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
Reasons for over 30% changes in related data on year-on-year basis
√ Applicable □ Not applicable
① By Industry: Compared with the corresponding period of last year, the operating revenue of pharmaceutical chemical industry
is increased by 36.71%, the operating cost is increased by 75.45%，mainly due to the increase of the sales of vitamin E and
DL-methionine.
② By Product: Compared with the corresponding period of last year, the operating revenue of nutrition is increased by 46.53%,
the operating cost is increased by 91.96%，mainly due to the increase of the sales of vitamin E and DL-methionine. And mainly due
to the increase of the sales, the operating cost of aroma chemicals is increased by 37.41% over the corresponding period of last year.
③ By Region: Mainly due to the sales increase of nutrition series products, the operating revenue in domestic business and the
operating cost in domestic and foreign business are increased by more than 30%.
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
IV. Non-main Business Analysis
□ Applicable √ Not applicable
V. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
At the End of the Current
At the End of the Previous Year
Reporting Period
Proportion
Proporti Statement on Significant
Item Proportion Increase and
on to Changes
Amount to Total Amount Decrease
Total
Assets
Assets
Increase
Increase in net cash flow
Cash and Bank 3.11
6,412,612,895.26 19.06% 4,927,657,236.24 15.95% generated by operating
Balances percentage
activities
point
Increase
Accounts 1.19 Increase in accordance with
2,502,876,087.12 7.44% 1,930,930,930.01 6.25%
Receivable percentage operating income growth
point
Increase
0.38
Inventories 3,522,689,642.11 10.47% 3,117,042,558.78 10.09% No significant change
percentage
point
Decrease
4.16
Fixed Assets 13,752,889,539.13 40.87% 13,914,151,215.54 45.03% No significant change
percentage
point
Decrease
Long-term
0.04
Equity 358,710,928.96 1.07% 343,378,891.18 1.11% No significant change
percentage
Investment
point
Increase Mainly due to the increase of
2.53 the investment in Shandong
Construction in
2,295,793,123.43 6.82% 1,325,545,420.56 4.29% percentage Industrial Park Project TMB
progress
point and Shangyu Industrial Park
Project PPS
Increase
Right-of-use 5,015,022.59 0.01% 0 0.00% Impact of the implementation of
0.01
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Assets percentage the new lease standard in 2021
point
Decrease
Short-term 0.52
2,398,007,852.59 7.13% 2,363,525,192.53 7.65% No significant change
Borrowings percentage
point
Decrease
Contract 0.05
44,962,287.54 0.13% 56,302,537.11 0.18% No significant change
Liabilities percentage
point
Increase
Long-term 3.83
5,794,842,788.03 17.22% 4,136,875,354.33 13.39% increase in loans
Borrowings percentage
point
Increase
Lease 0.02 Impact of the implementation of
5,398,990.60 0.02% 0 0.00%
Liabilities percentage the new lease standard in 2021
point
2. Major overseas assets
√ Applicable □ Not applicable
The
Control Proportion of Whether there
Asset Operation Measures to Overseas is a Significant
Causes Asset Size Location Earnings
Specifics Mode Safeguard Asset Assets to the Impairment
Security Company’s Risk
Net Assets
Appoint
directors and
hire accounting
NHU Lunebur
Establish Trading firms to audit
EUROPE 824,800,061.59 g, 15,167,263.78 0.61% No
ment enterprises the annual
GmbH Germany
financial report
to ensure the
safety of assets.
Appoint
NHU directors and
Lunebur
Performance Establish Trading hire accounting
25,054,953.10 g, 1,556,597.70 0.05% No
Materials ment enterprises firms to audit
Germany
GmbH the annual
financial report
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
to ensure the
safety of assets.
Subsidiari
es Appoint
acquired directors and
The
through hire accounting
Lunebur transportation
Bardoterminal business firms to audit
14,086,901.27 g, and 1,838,318.55 0.06% No
GmbH combinati the annual
Germany warehousing
ons not financial report
sector
under to ensure the
common safety of assets.
control
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Changes in Cumulat
Impairm
At the Fair Value ive Fair
ent Loss Purchase Amount Sales Amount of
Beginning of Gains and Value Other At the End of the
Item of the of the Reporting the Reporting
the Reporting Losses in the Changes Variations Reporting Period
Reportin Period Period
Period Current in
g Period
Period Equity
Financial
Assets
1. Trading
Financial
Assets
(excluding 850,000,000.00 1,320,000,000.00 850,000,000.00 1,320,000,000.00
derivative
financial
assets)
2.Derivative
Financial 2,227,964.70 4,198,235.42 6,426,200.12
Assets
Financial
Assets 852,227,964.70 4,198,235.42 1,320,000,000.00 850,000,000.00 1,326,426,200.12
Subtotal
Total 852,227,964.70 4,198,235.42 1,320,000,000.00 850,000,000.00 1,326,426,200.12
Are there any significant changes in the measurement attributes of the company's main assets during the reporting period?
□ Yes √ No
17
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
4. Restrictions on asset rights as of the end of the reporting period
(1) The right of use of RMB 230,449,397.69 various cash deposits in monetary fund is restricted due to pledge.
(2) The right of use of RMB8,890,529.21 receivables for financing is restricted due to pledge for issuing bank acceptance bill.
(3) The right of use of RMB431,546,440.19 notes receivable is restricted due to being pledged for issuing bank acceptance bill.
(4) The right of use of RMB 86,062,988.84 fixed assets is restricted due to being mortgaged to the bank for Loan.
(5) The right of use of RMB10,074,981.26 intangible assets is restricted due to being mortgaged to the bank for Loan.
VI. Investment analysis
1. Overview
√ Applicable □ Not applicable
Investment In The Reporting Period Investment Over The Corresponding
Rate Of Change
(RMB) Period Of Last Year(RMB)
1,118,444,545.53 710,039,301.37 57.52%
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investments underway during the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
No such case as securities investment during the reporting period.
18
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
(2) Derivatives investment
√ Applicable □ Not applicable
Unit: ten thousand RMB
Proportion of
Whether Types of Amount Investment
Relation Investment Amount Sold Amount of Investment Actual Profit
it is a Derivative Initial Amount Purchased Amount in the
Counterpart with Starting Termination Amount at the during the Provision for Amount at the and Loss During
Related s of Derivatives during the Company’s net
y Related Date Date Beginning of the Reporting Impairment End of the the Reporting
Transacti Investmen Investment Reporting Assets at End of
Party Period Period Accrued (if any) Period Period
on t Period the Reporting
Period
Structured
Non-related July 20, February 24,
Bank No Forward 9,753.70 2,459.60 2,459.60 9.48
party 2020 2021
Contracts
Decemb
Non-related Forward March 25,
Bank No 4,802.49 er 15, 4,802.49 4,802.49 81.84
party Contracts 2021
2020
Structured Decemb
Non-related March 25,
Bank No Forward 19,803.00 er 22, 19,803.00 19,803.00 -46.41
party 2021
Contracts 2020
Structured Decemb
Non-related February 22,
Bank No Forward 19,686.44 er 30, 13,116.48 13,116.48
party 2021
Contracts 2020
Structured Decemb
Non-related January 25,
Bank No Forward 15,744.40 er 30, 10,487.20 10,487.20
party 2021
Contracts 2020
Bank Non-related No Structured 9,840.25 Decemb January 25, 6,554.50 6,554.50
19
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
party Forward er 30, 2021
Contracts 2020
Structured
Non-related January January 19,
Bank No Forward 39,361.13 39,361.13 39,361.13 9.93
party 6, 2021 2021
Contracts
Structured
Non-related February February 18,
Bank No Forward 9,251.42 9,251.42 9,251.42 2.76
party 9, 2021 2021
Contracts
Structured
Non-related January February 22,
Bank No Forward 3,186.36 3,186.36 3,186.36 -5.69
party 8, 2021 2021
Contracts
Structured
Non-related January March 26,
Bank No Forward 41,085.00 41,085.00 41,085.00 111.66
party 8, 2021 2021
Contracts
Non-related Forward January January 25,
Bank No 12,923.70 12,923.70 12,923.70 -157.9
party Contracts 13, 2021 2021
Non-related Forward January March 26,
Bank No 8,768.32 8,768.32 8,768.32 10.58
party Contracts 13, 2021 2021
Non-related Forward January January 29,
Bank No 7,117.00 7,117.00 7,117.00 -77.88
party Contracts 14, 2021 2021
Structured
Non-related January March 25,
Bank No Forward 32,624.00 32,624.00 32,624.00 143.27
party 28, 2021 2021
Contracts
Structured
Non-related January May 25,
Bank No Forward 25,468.00 25,468.00 25,468.00 138.41
party 28, 2021 2021
Contracts
20
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Structured
Non-related February March 26,
Bank No Forward 32,516.00 32,516.00 32,516.00 93.00
party 5, 2021 2021
Contracts
Structured
Non-related February March 15,
Bank No Forward 19,485.00 19,485.00 19,485.00 22.70
party 19, 2021 2021
Contracts
Non-related Forward February April 26,
Bank No 12,625.60 12,625.60 12,625.60 207.75
party Contracts 23, 2021 2021
Non-related Forward February May 17,
Bank No 38,986.40 38,986.40 38,986.40 -58.70
party Contracts 26, 2021 2021
Non-related Forward March 8, May 25,
Bank No 13,088.15 13,088.15 13,088.15 88.86
party Contracts 2021 2021
Non-related Forward April 1, April 26,
Bank No 3,293.25 3,293.25 3,293.25 13.87
party Contracts 2021 2021
Non-related Forward April 1, April 26,
Bank No 3,293.80 3,293.80 3,293.80 14.41
party Contracts 2021 2021
Non-related Forward April 7, August 25,
Bank No 17,233.23 17,233.23 10,910.75 6,322.48 0.31% 263.29
party Contracts 2021 2021
Non-related Forward April 9, April 26,
Bank No 3,117.63 3,117.63 3,117.63 41.43
party Contracts 2021 2021
Non-related Forward April 19, June 25,
Bank No 9,431.22 9,431.22 9,431.22 94.72
party Contracts 2021 2021
Non-related Forward April 30, May 25,
Bank No 12,948.00 12,948.00 12,948.00 -31.00
party Contracts 2021 2021
Non-related Structured April 30, July 26,
Bank No 16,250.20 16,250.20 9,711.20 6,539.00 0.32% 263.97
party Forward 2021 2021
21
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Contracts
Non-related Forward May 13, July 26,
Bank No 19,397.10 19,397.10 12,923.60 6,473.50 0.32% 229.07
party Contracts 2021 2021
Non-related Forward May 18, November
Bank No 15,812.50 15,812.50 7,854.50 7,958.00 0.39% 277.65
party Contracts 2021 22, 2021
Non-related Forward June 4, June 25,
Bank No 12,815.00 12,815.00 12,815.00 100.60
party Contracts 2021 2021
Non-related Forward June 7, July 26,
Bank No 19,270.25 19,270.25 12,802.00 6,468.25 0.32% 99.98
party Contracts 2021 2021
Non-related Forward June 15, June 25,
Bank No 1,553.69 1,553.69 1,553.69 -0.71
party Contracts 2021 2021
Non-related Forward June 15, July 26,
Bank No 5,448.24 5,448.24 5,448.24 0.27% 72.51
party Contracts 2021 2021
Non-related Forward June 17, June 25,
Bank No 19,290.90 19,290.90 19,290.90 223.34
party Contracts 2021 2021
Non-related Forward June 22, June 25,
Bank No 4,527.60 4,527.60 4,527.60 77.56
party Contracts 2021 2021
Non-related Forward June 30, August 25,
Bank No 6,175.40 6,175.40 6,175.40 0.31% 15.75
party Contracts 2021 2021
Total 545,974.37 -- -- 57,223.27 466,344.09 478,182.49 45,384.87 2.24% 2,330.10
Sources of Funds for Derivatives Investment Self-owned funds
Litigation Involved (if applicable) N/A
Disclosure Date of Board of Directors’
Announcement on the Approval of Derivatives March 31, 2021
Investment (if any)
22
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Disclosure Date of Shareholder Meeting’s
Announcement on the Approval of Derivatives Not applicable.
Investment (if any)
Risk Analysis and Description of Control
Measures for Derivatives Positions during the
To prevent exchange rate risk, the Company and its subsidiaries have carried out derivative business, and the Company and its subsidiaries strictly implement the
Reporting Period (including but not limited to
Rules and Regulations for the Administration of Foreign Exchange Hedging Business
market risk, liquidity risk, credit risk,
operational risk, legal risk, etc.)
Changes in Market Prices or Product Fair Value
of Invested Derivatives during the Reporting
Period, and the Analysis of the Fair Value of The floating income of the fair value of the invested derivatives was RMB 9.3699 million at the beginning of the reporting period, and it was RMB23.67 million at
Derivatives Should Disclose the Specific the end of the reporting period.
Methods Used and the Setting of Related
Assumptions and Parameters.
Explanation of Whether the Company’s
derivatives Accounting Policies and Specific
Accounting Principles have Changed Not applicable.
Significantly during the Reporting Period
Compared with the Previous Reporting Period
The Company has formulated the Rules and Regulations for the Administration of Foreign Exchange Hedging Business, and has established specific operating
procedures for conducting foreign exchange hedging business by strengthening internal control, implementing risk prevention measures and improving the
Independent directors’ special opinions on the
management level. The Company has analyzed the feasibility of its foreign exchange hedging business. Overall, it is feasible to carry out foreign exchange
Company's derivatives investment and risk
hedging, which can effectively reduce the risk of exchange rate fluctuations and help stabilize the profit level. The content and review procedures of the matter are
control
in compliance with the relevant laws, regulations, regulatory documents and the Articles of Association, and do not constitute any damage to the interests of the
Company and its other shareholders. We unanimously agree with the Company to conduct foreign exchange hedging business.
23
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
VII. Major Assets and Equity Sales
1. Major assets sales
□ Applicable √ Not applicable
No major assets sales in the reporting period of the Company
2. Major equity sales
□ Applicable √ Not applicable
VIII. Analysis of Major Holding and Equity Participation Companies
√ Applicable □ Not applicable
Major subsidiaries and equity participation companies with a net profit impact of over 10%.
Unit: RMB
Company Company Registered Total Net Operating Operating
Main businesses Net Profit
Name Type Capital Assets Assets Income Profit
Production and
Shangyu Subsidiary RMB 50 4,403,903, 3,082,08 1,107,164, 593,492,65 514,659,51
sales of feed
Bio-Chem Company million 838.82 6,702.23 203.39 6.61 9.60
additives
Production and
Shandong Subsidiary RMB 586 2,828,418, 2,170,40 1,305,532, 485,847,71 426,226,74
sales of Aroma
Pharmaceutical Company million 701.22 4,035.10 064.37 1.12 2.46
chemicals
Production and
Shandong Subsidiary RMB 830 5,156,411, 3,378,45 1,176,845, 345,969,97 304,177,90
sales of
Amino-acids Company million 491.45 3,465.25 216.88 9.63 3.08
methionine
Production and
Shandong Subsidiary RMB 500 3,543,688, 1,481,49 1,367,424, 616,957,67 532,251,32
sales of feed
Vitamins Company million 342.06 5,520.05 696.46 5.58 3.27
additives
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production
Company Name
subsidiaries during the reporting period management and performance
Zhejiang NHU Nylon Materials Co.,
Newly established N/A
Ltd.
IX. The structured entity controlled by the Company
□ Applicable √ Not applicable
24
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
X. Risks and Countermeasures
1. Macroeconomic Risks
Influenced by the global Covid-19 pandemic, the macroeconomic direction becomes more uncertain. NHU will pay close
attention to the evolution of the Covid-19 pandemic and its influence on the macroeconomy and this industry, actively respond to the
pandemic and promote the stable development of NHU.
2. Industry and Market Competition Risk
The Company faces competition in its own industry or cross-industry entrants in the domestic and international markets, and the
emergence of new technologies and new processes will not only impact the market, but also challenge the market position of the
Company in the industry. In the future, the Company will continuously lift its capabilities of research, development and innovation,
improve its processes, enhance cost control, and improve the core competitiveness.
3. Risk in Raw Material Price Fluctuation
In view of the scale compression of industries with excess production capacity through the national supply-side reform, some
small and medium-sized upstream suppliers will face high operating pressure, which will cause reduction of raw material
procurement channels and fluctuation of the raw material prices. Due to a high proportion of the raw material cost in the total cost of
the Company, the fluctuation of the raw material prices will impact the business performance of the Company. By establishing
strategic partnership with suppliers, the Company takes such measures as strategic procurement, expansion of procurement channels,
and reasonable control of the inventory according to the market conditions, trying to guarantee the material supply and control the
cost increase at a reasonable level to the maximum extent.
4. Risk in Exchange Rate Fluctuation
Considering that the sales revenue of the Company in the foreign markets accounts for a high proportion, the sales revenue and
profitability of the Company will be influenced by the trade barriers and exchange rate fluctuation caused by trade friction between
China and US and instability of the international economic situation. In the future, the Company will take targeted measures to
respond to the international market changes, stabilize the international market position and actively expand new economic growth
points to keep stable growth of the Company’s business.
5. Environment Protection Policy Risk
The Company is a player in the chemical and pharmaceutical manufacturing industry, which will face stricter supervision in
respect of environmental protection along with rising awareness of social and environmental protection. The Company adopts the
idea of green development, implements the environmental protection management in the full life cycle, and enhances reduction,
25
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
recycling and harmless treatment of the three wastes from reduction at the source, process control and treatment at the end. In terms
of process, the Company enhances control of the process source, carries out environmental protection assessment from process
development and plans the environmental protection line to guarantee treatment of three wastes covering the whole chain and process.
The Company takes ISO14001 as the management framework during production, establishes the systematic management system, and
carries out environmental protection management covering all the employees, times and spaces from the production source to the
center of three wastes. In terms of hardware, the Company pays attention to environmental protection investment, equips multiples
sets of waste water, waste gas and solid waste treatment devices and ensures effective running of various environmental protection
facilities. The Company sees environmental protection as a responsibility rather than an obligation, continuously exploring the road
of sustainable development that is green and low-carbon.
26
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Section IV Corporate Governance
I. Relevant Situation of the Annual General Meeting of Shareholders and the Extraordinary
General Meeting of Shareholders Held in the Reporting Period
1. The shareholders’ meetings for this reporting period
Percentage
Conference Conference
of Investors Date of Conference Date of Disclosure Conference Resolution
Session Type
Involved
It reviewed and approved 10
proposals, including the
2020 Annual
“2020 Annual Report of the
General Annual General
54.00% April 21, 2021 April 22, 2021 Board of Directors”, as
Meeting of Meeting
described in Announcement
Shareholders
No. 2021-019 on
www.cninfo.com.cn
2. Convening of the extraordinary shareholders’ general meetings upon request of the preferred
stockholders whose voting rights are restored
□ Applicable √ Not applicable
II. Changes of Directors, Supervisors and Senior Executives
□ Applicable √ Not applicable
There were no changes in the directors, supervisors and senior executives of the Company during the reporting period, which can be
found in the 2020 Annual Report.
III. Profit Distribution and Capital Reserve Converted to Share Capital in the Reporting
Period
□ Applicable √ Not applicable
The Company will not distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve in the reporting
period.
IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership
Plan or Other Employee Incentive Measures
√ Applicable □ Not applicable
The third employee stock ownership plan of the Company was reviewed and approved by the second extraordinary shareholders’
27
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
meeting of 2020 held on November 11, 2020, the current employee stock ownership plan is managed by the Company itself, and
the Company’s shares are acquired and held by stock purchase through secondary market, with total funds not exceeding RMB 306
million and a duration of not more than 24 months. As of February 26, 2021, the Company has completed the stock purchase through
the secondary market bidding transaction, and purchased 8,442,935 shares of the Company, accounting for 0.39% of the total share
capital of the Company, with a transaction amount of RMB 303,710,918.74 and an average transaction price of approximately RMB
35.97 per share, with a lock-up period of 12 months from February 27, 2021. For details, please refer to the “Announcement on the
Completion of Stock Purchase under the Third Employee Stock Purchase Plan” (2021-004) published on http://www.cninfo.com.cn .
The 2020 Annual General Meeting of Shareholders reviewed and approved the “2020 Profit Distribution Proposal”, agreeing to
distribute a cash dividend of RMB 7 (including tax) for every 10 shares to all shareholders based on the total share capital of
2,148,662,300 shares at that time, and to transfer 2 shares for every 10 shares to all shareholders by capital reserve. On May 19, 2021,
the Company implemented the 2020 annual equity distribution. After the transfer, the shares held by the third employee stock
ownership plan changed from 8,442,935 shares to 10,131,522 shares, accounting for the same proportion of the Company’s total
share capital. On June 9, 2021, the second holders’ meeting of the third employee stock ownership plan elected Mr Qiu Jinzhuo as a
member of the Management Committee of the third employee stock ownership plan, and his term of office coincides with the
duration of the third employee stock ownership plan. For details, please refer to the “Announcement on Adjusting the Members of the
Management Committee of the Third Employee Stock Ownership Plan” (2021-022) published on http://www.cninfo.com.cn .
Section V Environmental and Social Responsibilities
I. Major Environmental Issues
Whether the listed company and its subsidiaries belong to the key pollutant discharging units announced by the environmental
protection department
√ Yes □ No
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Not
Emission
NHU VOC 1 Plant area 10mg/m 100mg/m 0.61t 54.95t/a exceeding the
filter
standard
Not
Emission
NHU SO2 3 Plant area 3mg/m 50mg/m 0.04t 8.612t/a exceeding the
filter
standard
Not
Emission
NHU NOX 3 Plant area 38mg/m 150mg/m 0.39t 28t/a exceeding the
filter
standard
NHU Particulate Emission 3 Plant area 5mg/m 20mg/m 0.04t 2.11t/a Not
28
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
matters filter exceeding the
standard
Not
Collection
NHU COD 1 Plant area 174mg/L 500mg/L 9.34t 189.5t/a exceeding the
pipe
standard
Not
Ammonia Collection
NHU 1 Plant area 1.7mg/L 35mg/L 0.19t 13.28t/a exceeding the
nitrogen pipe
standard
Not
Total Collection
NHU 1 Plant area 19mg/L 120mg/L 1.85t 45.52t/a exceeding the
nitrogen pipe
standard
Not
Shangyu Emission
NOX 1 Plant area 47mg/m 240mg/m 6.775t 12.96t/a exceeding the
Bio-Chem filter
standard
Not
Shangyu Emission
VOC 3 Plant area 5mg/m 150mg/m 12.624t 271.182t/a exceeding the
Bio-Chem filter
standard
Not
Shangyu Collection
COD 1 Plant area 310mg/L 500mg/L 149.862t 447.4t/a exceeding the
Bio-Chem pipe
standard
Not
Shangyu Ammonia Collection
1 Plant area 22mg/L 35mg/L 10.927t 31.318t/a exceeding the
Bio-Chem nitrogen pipe
standard
Not
Shangyu Total Collection
1 Plant area 32mg/L 70mg/L 15.184t 62.637t/a exceeding the
Bio-Chem nitrogen pipe
standard
Zhejiang Not
Particulate Emission
Pharmaceutica 1 Plant area 3mg/m 15mg/m 0.0038t 0.304t/a exceeding the
matters filter
l standard
Zhejiang Not
Particulate Emission
Pharmaceutica 1 Plant area 3mg/m 65mg/m 0.46t 8.42t/a exceeding the
matters filter
l standard
Zhejiang Not
Particulate Emission 2 Plant area 2.37mg/m 30mg/m 0.915t 77.597t/a
Pharmaceutica exceeding the
29
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
l matters filter standard
Zhejiang Not
Emission
Pharmaceutica SO2 2 Plant area 7mg/m 200mg/m 1.089t 129.40t/a exceeding the
filter
l standard
Zhejiang Not
Emission
Pharmaceutica NOX 2 Plant area 22mg/m 200mg/m 3.882t 74.49t/a exceeding the
filter
l standard
Zhejiang Not
Emission
Pharmaceutica NOX 1 Plant area 60mg/m 500mg/m 11.811t 28.08t/a exceeding the
filter
l standard
Zhejiang Not
Emission
Pharmaceutica VOC 2 Plant area 10.57mg/m 150mg/m 3.753t 167.91t/a exceeding the
filter
l standard
Zhejiang Not
Collection
Pharmaceutica COD 1 Plant area 310mg/L 500mg/L 98.058t 292.37t/a exceeding the
pipe
l standard
Zhejiang Not
Ammonia Collection
Pharmaceutica 1 Plant area 22mg/L 35mg/L 7.15t 20.467t/a exceeding the
nitrogen pipe
l standard
Zhejiang Not
Total Collection
Pharmaceutica 1 Plant area 32mg/L 70mg/L 9.935t 40.93t/a exceeding the
nitrogen pipe
l standard
Zhejiang Not
Particulate Emission
Special 2 Plant area 5mg/m 30mg/m 0.515t 18.61t/a exceeding the
matters filter
Materials standard
Zhejiang Not
Emission
Special SO2 2 Plant area 14mg/m 200mg/m 1.182t 89.7t/a exceeding the
filter
Materials standard
Zhejiang Not
Emission
Special NOX 2 Plant area 88mg/m 200mg/m 8.127t 111.04t/a exceeding the
filter
Materials standard
Zhejiang Emission Not
VOC 1 Plant area 10mg/m 60mg/m 0.752t 69.72t/a
Special filter exceeding the
30
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Materials standard
Zhejiang Not
Collection
Special COD 1 Plant area 310mg/L 500mg/L 59.517t 180.15t/a exceeding the
pipe
Materials standard
Zhejiang Not
Ammonia Collection
Special 1 Plant area 22mg/L 35mg/L 4.307t 12.611t/a exceeding the
nitrogen pipe
Materials standard
Zhejiang Not
Total Collection
Special 1 Plant area 32mg/L 70mg/L 6.046t 25.221t/a exceeding the
nitrogen pipe
Materials standard
Shandong Not
Particulate Emission
Pharmaceutica 5 Plant area 1.35mg/m 10mg/m 0.63t 5.707t/a exceeding the
matters filter
l standard
Shandong Not
Emission
Pharmaceutica SO2 4 Plant area 0.113mg/m 50mg/m 0.7956t 4.046t/a exceeding the
filter
l standard
Shandong Not
Emission
Pharmaceutica NOX 5 Plant area 14.8mg/m 100mg/m 5.149t 77.328t/a exceeding the
filter
l standard
Shandong Not
Emission
Pharmaceutica VOC 3 Plant area 20mg/m 60mg/m 2.12t 27.924t/a exceeding the
filter
l standard
Shandong Not
Collection
Pharmaceutica COD 1 Plant area 639mg/L 1000mg/L 136t 547t/a exceeding the
pipe
l standard
Shandong Not
Ammonia Collection
Pharmaceutica 1 Plant area 49.4mg/L 100mg/L 4.39t 54.7t/a exceeding the
nitrogen pipe
l standard
Shandong Not
Total Collection
Pharmaceutica 1 Plant area 54.8mg/L 120mg/L 11.4t 65.64t/a exceeding the
nitrogen pipe
l standard
Shandong
Particulate Emission Not
NHU 1 Plant area 0.325mg/m 5mg/m 0.429t 10.51t/a
matters filter exceeding the
Thermoelectri
31
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
c Branch standard
Company
Shandong
NHU Not
Emission
Thermoelectri SO2 1 Plant area 5.34mg/m 35mg/m 6.51t 73.61t/a exceeding the
filter
c Branch standard
Company
Shandong
NHU Not
Emission
Thermoelectri NOX 1 Plant area 19.7mg/m 50mg/m 28.2t 105.16t/a exceeding the
filter
c Branch standard
Company
Not
Shandong Emission
SO2 4 Plant area 7.4mg/m 50mg/m 5.66t 92.59t/a exceeding the
Amino-acids filter
standard
Not
Shandong Emission
NOX 3 Plant area 26.27mg/m 100mg/m 20.81t 230.77t/a exceeding the
Amino-acids filter
standard
Not
Shandong Particulate Emission
5 Plant area 0.56mg/m 10mg/m 1.28t 21.19t/a exceeding the
Amino-acids matters filter
standard
Not
Shandong Emission
VOC 1 Plant area 13.4mg/m 60mg/m 31.37t 184t/a exceeding the
Amino-acids filter
standard
Not
Shandong Emission
VOC / Plant area / / 31.37t 184t/a exceeding the
Amino-acids filter
standard
Not
Shandong Collection
COD 1 Plant area 482.3mg/L 1000mg/L 111.89t 361.5t/a exceeding the
Amino-acids pipe
standard
Not
Shandong Ammonia Collection
1 Plant area 8.65mg/L 100mg/L 2.02t 36.15t/a exceeding the
Amino-acids nitrogen pipe
standard
Shandong Total Collection 1 Plant area 57.4mg/L 120mg/L 14.36t 43.38t/a Not
32
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Amino-acids nitrogen pipe exceeding the
standard
Not
Shandong Emission
VOC 4 Plant area 20mg/m 60mg/m 15.95t 173.53t/a exceeding the
Vitamins filter
standard
Not
Shandong Emission
VOC / Plant area / / 15.95t 173.53t/a exceeding the
Vitamins filter
standard
Not
Shandong Emission
SO2 2 Plant area 17mg/m 50mg/m 3.22t 50.65t/a exceeding the
Vitamins filter
standard
Not
Shandong Emission
NOX 3 Plant area 95mg/m 100mg/m 5.9437t 73.66t/a exceeding the
Vitamins filter
standard
Not
Shandong Particulate Emission
4 Plant area 5mg/m 10mg/m 0.948t 7.42t/a exceeding the
Vitamins matters filter
standard
Not
Shandong Collection
COD 1 Plant area 400mg/L 2000mg/L 34.59t 1140t/a exceeding the
Vitamins pipe
standard
Not
Shandong Ammonia Collection
1 Plant area 60mg/L 100mg/L 3.32t 57t/a exceeding the
Vitamins nitrogen pipe
standard
Not
Shandong Total Collection
1 Plant area 80mg/L 120mg/L 2.96t 68.4t/a exceeding the
Vitamins nitrogen pipe
standard
Heilongjiang Not
Particulate Emission
Biological 1 Plant area 5.75mg/m 30mg/m 5.26t 37.2182t/a exceeding the
matters filter
Technology standard
Heilongjiang Not
Particulate Emission
Biological 1 Plant area 13.55mg/m 30mg/m 5.26t 37.2182t/a exceeding the
matters filter
Technology standard
Heilongjiang Not
Particulate Emission 4 Plant area 31.6mg/m 200mg/m 5.26t 37.2182t/a
Biological exceeding the
33
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Technology matters filter standard
Heilongjiang Not
Particulate Emission
Biological 1 Plant area 32.4mg/m 120mg/m 5.26t 37.2182t/a exceeding the
matters filter
Technology standard
Heilongjiang Not
Emission
Biological SO2 1 Plant area 22.1mg/m 200mg/m 20.70t 208.478t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological SO2 1 Plant area 37.2mg/m 200mg/m 20.71t 208.479t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological SO2 4 Plant area 168.6mg/m 850mg/m 20.72t 208.480t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological SO2 1 Plant area 75.4mg/m 550mg/m 20.73t 208.481t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological NOX 1 Plant area 55.3mg/m 250mg/m 14.67t 160.074t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological NOX 1 Plant area 106.3mg/m 200mg/m 14.68t 160.075t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological NOX 4 Plant area 51.1mg/m 240mg/m 14.69t 160.076t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological NOX 1 Plant area 61.8mg/m 240mg/m 14.70t 160.077t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological VOC 1 Plant area 35.4mg/m 150mg/m 8.62t 32.4t/a exceeding the
filter
Technology standard
Heilongjiang Collection Not
COD 1 Plant area 152.9mg/m 350mg/L 262.15t /
Biological pipe exceeding the
34
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Technology standard
Heilongjiang Not
Ammonia Collection
Biological 1 Plant area 4mg/m 35mg/m 3.611t / exceeding the
nitrogen pipe
Technology standard
Heilongjiang Not
Total Collection
Biological 1 Plant area 9.6mg/m 50mg/L 24.42t / exceeding the
nitrogen pipe
Technology standard
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 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 complete sewage treatment system, with a wastewater collection system for
production sewage, domestic sewage, initial rainwater and accident water to separate the clean water from the waste water, and the
rainwater from the waste water. The waste pool is sealed with a cover, and all the waste gases are effectively collected and eventually
incinerated, effectively reducing the emission of waste gases.
Waste gas treatment: The Company adopts the self-developed nitrogen sealing system to effectively reduce the waste gas
emission; it uses different pretreatment technologies according to the composition and nature of different waste gases, and it
introduces advanced foreign waste gas treatment devices to strengthen the waste gas treatment capacity. The Company regularly
conducts annual waste gas leak detection and repair (LDAR) to effectively supervise and reduce unorganized waste gases. The
Company actively upgrades coal-fired thermal oil furnaces via the “coal to gas” conversion, introduces natural gas boilers, carries out
low-NOx transformation, and adds SNCR stripping facilities to the terminal to actively carry out NOx treatment. The Company
operates and maintains the facilities of odor evaluation system, focuses all monitoring points and monitoring data daily, conducts
timely trend analysis, tracking feedback on the reasons for exceeding the standard data, and basically realizes the early warning,
traceability and evaluability of the Company’s odor.
Solid waste disposal: The Company has a standardized temporary storage warehouse for hazardous wastes and hazardous waste
incineration devices, and it can basically dispose of hazardous waste by itself. The solid wastes entrusted for external treatment are
transferred in strict accordance with the requirements of the “Bill in Five Parts of Management Measures for the Transfer of
Hazardous Wastes” and entrusted to qualified units for treatment.
Noise prevention and control: The Company chooses low-noise equipment, and adopts the noise reduction measures of
foundation damping for the equipment that does not need to be fixed. In addition to taking foundation damping for air compressors,
blowers and various pumps, the Company also installs additional soundproof covers around the noise sources for sound insulation.
35
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Emergency management: The Company installs online waste gas monitors around the plant boundary to monitor the
environment of the plant boundary in real time. It introduces VOC online monitors to monitor the emission tail gas data in real time
and uploads the detection data to the monitoring platform. It adopts waste water one enterprise one pipe online monitoring to monitor
the waste water emission index in real time and upload it to the Environmental Protection Bureau normally. It introduces domestic
first-class elevated flare technology to specifically deal with abnormal waste gas in the production process. It introduces domestic
first-class leak stoppage technology under pressure to reduce the abnormal leakage of pipelines, valves, flanges and tanks to the
minimum, thus reducing the environmental impact caused by a large number of leaks.
Environmental impact assessment of construction projects and other administrative permits for environmental
protection
The construction project of the tank area of Zhejiang NHU Construction Material Co., Ltd. has obtained the environmental
assessment filing form from Shangyu Branch of Shaoxing Ecological Environment Bureau (Yuhuan Jianbei [2021] No. 37).
Heilongjiang NHU Biotechnology Co., Ltd. has completed the environmental protection inspection and acceptance of the
completion of Heilongjiang Suihua NHU Biofermentation Industrial Park Project (Phase I). It has obtained the approval of the
environmental impact report of Heilongjiang Suihua NHU Biofermentation Industrial Park Project (Phase II) (Suihuan Letter {2020}
No. 231}).
Emergency plan for unexpected environmental incidents
Shandong NHU Pharmaceutical Co., Ltd. has formulated the Emergency Plan for Environmental Emergencies of Shandong
NHU Pharmaceutical Co., Ltd. according to the Measures for the Administration of Filing Emergency Plans for Environmental
Emergencies in Enterprises and Institutions (Trial) promulgated by the State, and filed it with Binhai Branch of Weifang Ecological
Environment Bureau for record in May 2021.
Heilongjiang NHU Biotechnology Co., Ltd. has formulated the Emergency Plan for Environmental Emergencies of
Heilongjiang NHU Biotechnology Co., Ltd., which was filed with Suihua Ecological Environment Bureau for record in April 2021.
Emergency plans by other subsidiaries are within the validity period.
Environmental self-monitoring program
The Company has strong pollutant discharge monitoring and management abilities, and it can timely inform the environmental
protection administrative departments and the public of the monitoring information. The Company has developed a relevant
self-testing program, which covers the indicators of organized waste gas, unorganized waste gas and groundwater. Meanwhile, the
Company has entrusted a third-party testing company to perform regular monitoring.
The Company discloses environmental information in strict accordance with requirements at national, provincial, municipal and
county levels on enterprise environmental information disclosure. It has disclosed its environmental protection information on the
platforms of environmental information management system of key provincial and municipal sewage units.
Administrative penalties for environmental offences during the reporting Period
Impact on the production
Name of company or management and The Company’s
Cause for penalty Offence situation Penalty result
subsidiary performance of the listed corrective measures
company
N/A N/A N/A N/A N/A N/A
36
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Other environmental information that should be disclosed
N/A
Other information related to environmental protection
N/A
II. Social Responsibilities
N/A
37
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Section VI Significant Events
I. Commitments made by the Company’s controlling shareholders, shareholders, related
parties, purchasers and purchasing companies have been fulfilled during the reporting period
and those that have not been fulfilled by the end of the reporting period
√ Applicable □ Not applicable
Party making Commitment
Commitments Content Time Term Performance
commitments Type
Equity division
reform N/A N/A N/A N/A N/A
commitments
Commitments
made in the
acquisition
N/A N/A N/A N/A N/A
report or report
on equity
changes
Commitments
made during
N/A N/A N/A N/A N/A
asset
restructuring
Commitments on They signed the “Commitment on
NHU Holding Group Co.,
horizontal Not Engaging in Horizontal
Ltd., Zhang Pingyi, Shi
competition, Competition”, and undertook not Strictly
Cheng, Yuan Yizhong, Hu June 25,
connected to engage in business activities Long-term fulfilled the
Baishan, Shi Guanqun, 2004
transactions and that constitute competition with commitments
Wang Xuewen, Cui
occupation of the Company’s business after
Xinrong and Wang Xulin
funds listing.
Commitments The directors and senior
made during executives of the Company
initial public undertake to perform their duties
offerings or faithfully and diligently to
Hu Baifan; Hu Baishan;
refinancing safeguard the legitimate rights
Shi Guanqun; Wang Strictly
and interests of the Company and January
Xuewen; Cui Xinrong; Long-term fulfilled the
all shareholders, and make the 12, 2017
Wang Zhengjiang; Zhou commitments
following commitments in
Guiyang
accordance with the relevant
provisions of the CSRC that the
Company’s measures to fill
immediate returns can be
38
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
effectively performed: 1. not to
transfer benefits to other units or
individuals without compensation
or on unfair terms, or use other
means to harm the interests of the
Company; 2. to restrain the
directors and senior managers’
position-related consumption; 3.
not to use the Company’s assets
to engage in investment or
consumption activities unrelated
to the performance of their duties;
4. to link the remuneration system
formulated by the board of
directors or the remuneration
committee to the implementation
of the Company’s measures for
filling immediate returns; 5. to
link the exercise conditions of the
Company’s equity incentives to
be announced in the future to the
implementation of the Company’s
measures for filling immediate
returns.
Not to act beyond the authority to
interfere with the Company’s
operation and management
Strictly
Hu Baifan; NHU Holding activities, not to encroach upon January
Long-term fulfilled the
Group Co., Ltd. the Company’s interests, and to 12, 2017
commitments
effectively fulfill the relevant
measures to fill in the Company’s
returns.
Equity incentive
N/A N/A N/A N/A N/A
commitment
Other
commitments to
minority N/A N/A N/A N/A N/A
shareholders of
the Company
Whether the commitment has been fulfilled on time Yes
Where the commitment is overdue, the specific reasons for not completing the performance and the following work
Not applicable.
plan shall be explained in detail
39
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
II. Non-operational capital occupation over listed companies by controlling shareholders and
their related parties
□ Applicable √ Not applicable
During the reporting period, there is no non-operational capital occupation over listed companies by controlling shareholders and
their related parties.
III. Illegal external guarantees
□ Applicable √ Not applicable
No illegal external guarantees during the reporting period.
IV. Appointment and dismissal of accounting firms
Whether the semi-annual report has been audited
□ Yes √ No
The Company’s semi-annual report has not been audited.
V. Explanations made by the Board of Directors and the Board of Supervisors on the
“Non-Standard Audit Report” from the accounting firm during the reporting period
□ Applicable √ Not applicable
VI. Statement by the Board of Directors on the “Non-Standard Audit Report” of the previous
year
□ Applicable √ Not applicable
VII. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.
VIII. Litigation Matters
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
There is no major lawsuit or arbitration during this reporting period.
Other litigation matters
√ Applicable □ Not applicable
Basic Whether an Litigation Outcome and impact Enforcement
Amount Date of Disclosure
information on estimated (arbitratio of litigation of litigation
involved Disclosure Index
litigation liability is n) (arbitration) hearings (arbitration)
40
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
(arbitration) formed progress judgments
Fujian Haixin
The dispute of Pharmaceutical Co.,
Fujian Fukang Ltd. was ordered to
Pharmaceutical compensate
Co., Ltd., Fujian ZHEJIANG NHU
Haixin Retrial of COMPANY, LTD. Not
Execution
Pharmaceutical 50 million No final for economic losses applicable
completed
Co., Ltd. and Yu appeal of RMB 25 million, .
Ke infringing on and Fujian Fukang
the trade secret Pharmaceutical Co.,
of Zhejiang Ltd. and Yu Ke bore
NHU Co., Ltd. joint and several
liability.
IX. Penalties and Rectification
√ Applicable □ Not applicable
Types of
Date of Disclosure
Name Type Causes investigation Conclusions (if any)
Disclosure Index
and penalties
An employee surnamed Li of Merit 1. Xihu District People’s Court of
Interactive Co.,Ltd. falsified several Hangzhou Municipality issued “(2021) Zhe
sales contracts and related 0106 Xing Chu Zi No. 200 Criminal
settlement documents between the Judgment”, which held that Li, a former
company and its customers by employee of Merit Interactive Co.,Ltd.,
forging seals, etc. Merit Interactive committed the crime of embezzlement and
Co.,Ltd. failed to timely discover was sentenced to fixed-term imprisonment
the falsity of the above contracts of 11 months and a fine of RMB 100,000;
and businesses, recognized the Filed for Li, the defendant, was ordered to withdraw
related sales revenues and prepare investigation the stolen money of RMB 257,027 and
Independent financial statements accordingly, or return it to Merit Interactive Co.,Ltd. 2. On
Zhu Jianmin
Director resulting in false recording of its administrative July 26, 2021, Merit Interactive Co.,Ltd.
2019 Third Quarter report, 2019 penalties by received the “Prior Notice of Administrative
Annual Report, 2020 First Quarter CSRC Penalty” issued by Zhejiang Securities
Report, 2020 Semi-Annual report, Regulatory Bureau, which concluded that
and 2020 Third Quarter Report. Merit Interactive Co.,Ltd. constituted an
Merit Interactive Co.,Ltd. was information disclosure violation and that
suspected of violating laws and Zhu Jianmin, the then deputy general
regulations in information manager and chief financial officer, who
disclosure and was investigated by was in charge of financial work, failed to
CSRC. Zhu Jianmin, an ensure the truthfulness, accuracy and
independent director of the completeness of the company’s information
41
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Types of
Date of Disclosure
Name Type Causes investigation Conclusions (if any)
Disclosure Index
and penalties
Company, was the then deputy disclosure and was the person in charge
general manager and chief financial directly responsible for the information
officer of Merit Interactive Co.,Ltd. disclosure violation. Zhu Jianmin was given
a warning and fined RMB 800,000.
Rectification explanation
√ Applicable □ Not applicable
On February 3, 2021, Zhejiang Securities Regulatory Bureau issued the “Decision on the Issuance of Warning Letters to Merit
Interactive Co.,Ltd. and Related Persons”, which concluded that the financial data of operating income, total profit and net profit
attributable to shareholders of the listed company disclosed in the 2019 Annual Report and 2020 First Quarter Report, Semi-Annual
Report and Third Quarter Report of Merit Interactive Co.,Ltd. were not accurate, and at the same time there were internal control
irregularities. Zhejiang Securities Regulatory Bureau decided to take the supervisory and management measures of issuing warning
letters to Fang Yi, Chairman and General Manager, Zhu Jianmin, Chief Financial Officer, and Li Haochuan, Board Secretary,
respectively, and recorded such letters in the securities and futures market integrity file. The above-mentioned persons were required
to perform their diligence obligations, organize the company to improve internal control, establish a sound financial and accounting
management system and information disclosure system and strictly implement them, effectively safeguard the interests of all
shareholders and submit a written report to Zhejiang Securities Regulatory Bureau before February 18, 2021.
X. Integrity of the Company, Its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
XI. Significant Related-party Transactions
1. Related transactions relevant to daily operations
□ Applicable √ Not applicable
No such case as related-party transactions connected with daily operations.
2. Related transactions in acquisition or sale of assets or equities
□ Applicable √ Not applicable
No such case as related-party transactions arising from the acquisition or sale of assets or equity.
3. Significant related-party transactions arising from joint investments on external parties
□ Applicable √ Not applicable
No such case as connected transactions of joint foreign investment during the reporting period.
42
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
4. Related-party creditor’s rights and debts
□ Applicable √ Not applicable
No such case as related credits and debts during the reporting period.
5. Transactions with related financial companies and financial companies controlled by the Company
□ Applicable √ Not applicable
No deposit, loan, credit or other financial business between the Company and the related financial company, or between the financial
company controlled by the Company and the related parties.
6. Other major related transactions
□ Applicable √ Not applicable
No other major related transactions during the reporting period.
XII. Significant Contracts and Performance
1. Matters on trusteeship, contracting, and leasehold
(1) Matters on trusteeship
□ Applicable √ Not applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
No such case as contracting during the reporting period.
(3) Leasing
□ Applicable √ Not applicable
No lease during the reporting period.
2. Significant guarantees
√ Applicable □ Not applicable
Unit: ten thousand RMB
External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries)
Announcemen Gua Guarantee
Guarant Actual Actual Counter
Guarantee t date of Type of rant Term of Due for related
ee occurrence guarantee guarantee
d party disclosure of guarantee y (if guarantee or not parties or
amount date amount (if any)
the guarantee any) not
43
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
cap
Total amount of guarantees
Total amount of guarantees approved
0 actually occurred during the 0
during the reporting period (A1)
reporting period (A2)
Total balance of guarantees at
Total amount of guarantees approved at
0 the end of the reporting period 0
the end of the reporting period (A3)
(A4)
The Company’s guarantees to subsidiaries
Announcemen
Gua Guarantee
t date of Guarant Actual Actual Counter
Guarantee Type of rant Term of Due for related
disclosure of ee occurrence guarantee guarantee
d party guarantee y (if guarantee or not parties or
the guarantee amount date amount (if any)
any) not
cap
Joint and
NHU May 14, 2019
December 28, May 14, several
(Hong 123,000 9,690.15 - May 13, Yes No
2018 2019 liability
Kong) 2021
guarantee
Heilongjia
Joint and
ng June 24, 2019
December 28, June 24, several
Biological 200,000 200,000.00 - December No No
2018 2019 liability
Technolog 31, 2023
guarantee
y
Joint and November 29,
Shandong December 28, November several 2019 -
90,000 50,000.00 No No
Vitamins 2018 29, 2019 liability December 21,
guarantee 2023
Joint and February 28,
Shangyu December 28, February several 2020 -
17,000 17,000.00 Yes No
Bio-Chem 2018 28, 2020 liability February 27,
guarantee 2021
Joint and
NHU June 30, 2020
June 30, several
Import & May 21, 2020 15,000 10,000.00 - September No No
2020 liability
Export 13, 2021
guarantee
Joint and
Shandong June 22, 2020
June 22, several
Pharmace May 21, 2020 20,000 10,000.00 - June 21, Yes No
2020 liability
utical 2021
guarantee
NHU Joint and July 15, 2020
May 21, 2020 120,000 July 15, 7,686.23 Yes No
(Hong several - June 18,
44
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Kong) 2020 liability 2021
guarantee
Joint and
NHU July 30, 2020
July 30, several
(Hong May 21, 2020 120,000 7,686.23 - July 14, No No
2020 liability
Kong) 2021
guarantee
Joint and September 7,
NHU
September several 2020 -
(Hong May 21, 2020 120,000 51,680.80 No No
7, 2020 liability September 7,
Kong)
guarantee 2023
Joint and September 22,
NHU
September several 2020 -
(Hong May 21, 2020 120,000 55.49 Yes No
22, 2020 liability January 10,
Kong)
guarantee 2021
Joint and
NHU September 24,
September several
(Hong May 21, 2020 120,000 5,168.08 2020 - May Yes No
24, 2020 liability
Kong) 21, 2021
guarantee
Joint and
NHU December 31,
December several
(Hong May 21, 2020 120,000 94.06 2020 - May Yes No
31, 2020 liability
Kong) 20, 2021
guarantee
Joint and March 24,
Shandong March 24, several 2021 -
May 21, 2020 50,000 50,000.00 No No
Jinghua 2021 liability December 25,
guarantee 2025
Joint and
NHU April 06, 2021
April 06, several
(Hong May 21, 2020 120,000 83.14 - July 30, No No
2021 liability
Kong) 2021
guarantee
Joint and
NHU June 18, 2021
June 18, several
(Hong April 21, 2021 120,000 7,686.23 - June 17, No No
2021 liability
Kong) 2022
guarantee
Joint and
NHU June 21, 2021
June 21, several
(Hong April 21, 2021 120,000 65.60 - October 30, No No
2021 liability
Kong) 2021
guarantee
Total amount of guarantees to Total amount of guarantees to
subsidiaries approved during the 455,000.00 subsidiaries actually occurred 57,834.97
reporting period (B1) during the reporting period (B2)
45
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Total balance of guarantees
Total amount of guarantees to
actually paid to subsidiaries at
subsidiaries approved at the end of the 824,450.17 377,202.00
the end of the reporting period
reporting period (B3)
(B4)
Subsidiaries' guarantees to subsidiaries
Announcemen
Gua Guarantee
t date of Guarant Actual Actual Counter
Guarantee Type of rant Term of Due for related
disclosure of ee occurrence guarantee guarantee
d party guarantee y (if guarantee or not parties or
the guarantee amount date amount (if any)
any) not
cap
Total amount of guarantees to Total amount of guarantees to
subsidiaries approved during the 0 subsidiaries actually occurred 0
reporting period (C1) during the reporting period (C2)
Total amount of guarantees to Total of actual guarantee
subsidiaries approved at the end of the 0 balance for subsidiaries at the 0
reporting period (C3) end of the reporting period (C4)
Total amount of company guarantees (namely sum of the previous three major items)
Total amount of guarantees approved Total amount of guarantees
during the reporting period 455,000.00 actually occurred during the 57,834.97
(A1+B1+C1) reporting period (A2+B2+C2)
Total amount of guarantees approved by Total balance of guarantees
the end of the reporting period 824,450.17 actually paid at the end of the 377,202.00
(A3+B3+C3) reporting period (A4+B4+C4)
Total amount of actual guarantees (A4+B4+C4) as a percentage of the
18.64%
Company's net assets
Including:
Balance of guarantees to the shareholders, actual controllers and their
0.00
related parties (D)
Balance of debt guarantees directly or indirectly offered to guaranteed
260,000.00
objects with asset-liability ratio exceeding 70% (E)
Amount of the guarantees with the total volume exceeding 50% of the
0.00
net assets (F)
Total amount of the above three guarantees (D+E+F) 260,000.00
Notes on unexpired guarantees with guarantee responsibilities
occurred or evidence of possible joint liabilities within the reporting N/A
period (if any)
Notes on providing external guarantees in violation of specified
N/A
procedures (if any)
46
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
3. Entrusted financing
√ Applicable □ Not applicable
Unit: ten thousand RMB
Impairment
Overdue amount accrued
Specific type Funding source Entrusted amount Unexpired balance outstanding for overdue
amount financial
management
Bank financial
Raised funds 362,000 357,000 0 0
products
Total 362,000 357,000 0 0
Specific matters on high-risk entrusted capital management with a large amount for a single item, or with low security, poor liquidity
and no capital preservation guarantee.
□ Applicable √ Not applicable
Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment
□ Applicable √ Not applicable
4. Major contracts in daily operations
□ Applicable √ Not applicable
5. Other significant contracts
□ Applicable √ Not applicable
No such case as other significant contract during the reporting period.
XIII. Explanations on Other Significant Matters
□ Applicable √ Not applicable
No other significant matters needed to be explained during the reporting period.
XIV. Significant Events of the Company’s Subsidiaries
□ Applicable √ Not applicable
47
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Section VII Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the change Increase or decrease in the change (+, -) After the change
Shares
Shares converted
Item Bonus Percentag
Number Percentage newly from Others Subtotal Number
shares e
issued capital
reserves
I. Shares with
limited sales 27,821,505 1.29% 5,051,846 -2,562,267 2,489,579 30,311,084 1.18%
condition
1. Other
domestic 27,821,505 1.29% 5,051,846 -2,562,267 2,489,579 30,311,084 1.18%
shares
Shares held by
domestic
27,821,505 1.29% 5,051,846 -2,562,267 2,489,579 30,311,084 1.18%
natural
persons
II. Shares
2,120,840, 424,680,6
without 98.71% 2,562,267 427,242,881 2,548,083,676 98.82%
795 14
restrictions
1. RMB 2,120,840, 424,680,6
98.71% 2,562,267 427,242,881 2,548,083,676 98.82%
common stock 795 14
2,148,662, 429,732,4
III. Total 100.00% 0 429,732,460 2,578,394,760 100.00%
300 60
Reasons for changes in shares
√ Applicable □ Not applicable
1. On March 15, 2021, Cui Xinrong, a director of the seventh-session, Ye Yueheng, Qiu Jinzhuo and Liang Xiaodong, supervisors of
the Company, had been out of office for six months. The shares held by them were released from restricted sale, and the total number
of shares subject to unlimited sale conditions increased by 2,562,267 shares.
2. On May 19, 2021, the Company implemented the annual equity distribution plan for 2020, based on the total share capital of
2,148,662,300 shares at that time, 2 shares were transferred to all shareholders by capital reserve for every 10 shares, totaling
429,732,460 shares, and the total share capital of the Company was 2,578,394,760 shares after the transfer.
48
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Approval for changes in shares
√ Applicable □ Not applicable
The 2020 Annual General Meeting of Shareholders reviewed and approved the “2020 Profit Distribution Proposal”, agreeing to
distribute a cash dividend of RMB 7 (including tax) for every 10 shares to all shareholders based on the total share capital of
2,148,662,300 shares at that time, and to transfer 2 shares for every 10 shares to all shareholders by capital reserve for a total transfer
of 429,732,460 shares, after which the total share capital of the Company was 2,578, 394,760 shares.
Transfer for changes in shares
√ Applicable □ Not applicable
This transfer of capital reserve to share capital was completed on May 19, 2021.
The progress on share repurchase
□ Applicable √ Not applicable
The progress on reduction of re-purchase shares by means of centralized competitive bidding
□ Applicable √ Not applicable
Effects of changes in shares on the basic earnings per share (“EPS”), diluted EPS, net assets per share, attributable to common
shareholders of the Company, and other financial indexes over the last year and last period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or are required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted stocks
√ Applicable □ Not applicable
Unit: share
Number
of Shares
Number of Number of
with Number of
unlocked increased
Limited shares with
Name of shares with shares with
Sales limited sales Reasons for limited
Sharehold limited sales limited sales Date of unlocking
Condition condition at sales
er condition in condition in
at the the end of
current current
Beginning the period
period period
Of the
Period
Locked-up outstanding
Annual lock-up of 75% of
Hu Baifan 7,250,936 0 1,450,187 8,701,123 shares held by senior
total shareholding
executives
Locked-up outstanding
Hu Annual lock-up of 75% of
7,602,046 0 1,520,409 9,122,455 shares held by senior
Baishan total shareholding
executives
Shi 5,457,208 0 1,091,441 6,548,649 Locked-up outstanding Annual lock-up of 75% of
49
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Guanqun shares held by senior total shareholding
executives
Locked-up outstanding
Wang Annual lock-up of 75% of
4,623,922 0 924,785 5,548,707 shares held by senior
Xuewen total shareholding
executives
Wang Locked-up outstanding
Annual lock-up of 75% of
Zhengjian 239,062 0 47,812 286,874 shares held by senior
total shareholding
g executives
Locked-up outstanding
Zhou Annual lock-up of 75% of
86,064 0 17,212 103,276 shares held by senior
Guiyang total shareholding
executives
100% lock-up of shares
Cui for 6 months after the
2,083,962 2,083,962 0 0 March 15, 2021
Xinrong senior executive’s
resignation
100% lock-up of shares
Ye for 6 months after the
191,250 191,250 0 0 March 15, 2021
Yueheng senior executive’s
resignation
100% lock-up of shares
Qiu for 6 months after the
95,805 95,805 0 0 March 15, 2021
Jinzhuo senior executive’s
resignation
100% lock-up of shares
Liang for 6 months after the
191,250 191,250 0 0 March 15, 2021
Xiaodong senior executive’s
resignation
27,821,50
Total 2,562,267 5,051,846 30,311,084 -- --
5
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total Number of
Total Number of Preferred Shareholders (If Any) (Refer to
Common
91,386 Note 8) Whose Voting Rights Have Been Recovered at the 0
Shareholders at the
End of the Reporting Period
End of the
50
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Reporting Period
Shareholding list of common shareholders with over 5% shares or top ten shareholders
Number Pledges,
Number of of Number of markings or
Shareho common Changes in common common freezings
Nature of
Name of lding shares held at the shares shares held
Sharehold
Shareholder Percenta the end of the reporting held with without State
er Num
ge reporting period limited limited sales of
ber
period sales condition Shares
conditions
Domestic
Non-state-
NHU Holding
owned 48.55% 1,251,903,644 208,650,607 1,251,903,644
Group Co., Ltd.
Legal
Person
Hong Kong Overseas
Securities Clearing Legal 2.66% 68,647,712 11,095,897 68,647,712
Co. Ltd. Person
Shanghai
Chongyang
Strategic Investment
Co., Ltd. - Others 1.75% 45,060,167 10,480,229 45,060,167
Chongyang
Strategic Huizhi
Fund
National Social
Others 0.99% 25,499,920 8,499,906 25,499,920
Security Fund 503
National Social
Others 0.94% 24,336,092 14,146,993 24,336,092
Security Fund 112
Overseas
Norges Bank -
Legal 0.57% 14,586,923 14,586,923 14,586,923
Equity Fund
Person
Aegon-Industrial
Fund - Industrial
Bank Co., Ltd. -
Xingquan - Organic
Others 0.55% 14,121,268 -1,559,081 14,121,268
Growth No. 1
Specific
Multi-Client Asset
Management Plan
Kuwait Investment Overseas 0.52% 13,525,529 13,525,529 13,525,529
51
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Authority Legal
Person
Domestic
Hu Baishan Natural 0.47% 12,163,274 2,027,212 9,122,455 3,040,819
Person
Beijing Yuanfeng
Private Equity Fund
Management
Partnership
(Limited Others 0.46% 11,977,187 -7,012,634 11,977,187
Partnership) -
Yuanfeng Value
Private Equity
Investment Fund
Strategic investors or general
legal entities becoming
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund
shareholders of the top 10
became the top 10 shareholders of the Company due to its participation in the 2017
common shares as a result of the
non-public offering of shares.
placement of new shares (if any)
(see Note 3)
Among the above shareholders, Hu Baishan is a director of NHU Holding Group Co., Ltd.
Description of the association
The Company is unaware whether there is any related relationships among other
relationship or concerted action of
shareholders and whether they are persons acting in concert as stipulated in the
above-mentioned shareholders
“Regulations on the Takeover of Listed Companies”.
Explanation of the above
shareholders involved in
N/A
proxy/trustee voting rights and
abstention from voting rights
Special note on the existence of
repurchase special accounts
Not applicable.
among the top 10 shareholders (if
any) (see Note 11)
Shareholding list of top ten common shareholders without limited sales condition
Number of common shares held without limited sales Type of Shares
Name of Shareholder
condition at the end of the reporting period Type of shares Number
RMB common
NHU Holding Group Co., Ltd. 1,251,903,644 1,251,903,644
stock
Hong Kong Securities Clearing RMB common
68,647,712 68,647,712
Co. Ltd. stock
Shanghai Chongyang Strategic
45,060,167 RMB common 45,060,167
Investment Co., Ltd. - Chongyang
52
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Strategic Huizhi Fund stock
National Social Security Fund RMB common
25,499,920 25,499,920
503 stock
National Social Security Fund RMB common
24,336,092 24,336,092
112 stock
RMB common
Norges Bank - Equity Fund 14,586,923 14,586,923
stock
Aegon-Industrial Fund -
Industrial Bank Co., Ltd. -
RMB common
Xingquan - Organic Growth No. 1 14,121,268 14,121,268
stock
Specific Multi-Client Asset
Management Plan
RMB common
Kuwait Investment Authority 13,525,529 13,525,529
stock
Beijing Yuanfeng Private Equity
Fund Management Partnership
RMB common
(Limited Partnership) - Yuanfeng 11,977,187 11,977,187
stock
Value Private Equity Investment
Fund
RMB common
Chongyang Group Co., Ltd. 11,635,159 11,635,159
stock
Explanation on associated
relationship or persons acting in
concert among top ten common Among the above shareholders, Hu Baishan is a director of NHU Holding Group Co., Ltd.
shareholders without limited The Company is unaware whether there is any related relationships among other
shares, and between top ten shareholders and whether they are persons acting in concert as stipulated in the
common shareholders without “Regulations on the Takeover of Listed Companies”.
limited shares and top ten
common shareholders
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund
Explanation on Top Ten Common holds 41,939,806 shares through the customer credit transaction guarantee securities
Shareholders’ Participation in account of Guotai Junan Securities Co., Ltd.; Beijing Yuanfeng Private Equity Fund
Securities Margin Trading (If Management Partnership (Limited Partnership) - Yuanfeng Value Private Equity Investment
Any) (see Note 4) Fund holds 5,988,587 shares through Huatai Securities Co., Ltd.’ s customer credit
transaction guarantee securities account.
Whether the Company’s top ten common shareholders or top ten common shareholders without limited shares agree on any
repurchase transaction in the reporting period
□ Yes √ No
None of the Company’s top ten common shareholders or top ten common shareholders without limited shares agreed on repurchase
in the reporting period.
53
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
IV. Shareholding Changes of Directors, Supervisors and Senior Executives
√ Applicable □ Not applicable
Numb Number of Number
Number of er of Restricted of Number of
Number of
Shares Shares Number of Stocks Restricted Restricted
Shares
Positi Held at the Decre Shares Held Granted at Stocks Stocks
Increased
Name Post on Beginning ased at the End of the Granted Granted at
in the
Status of the in the the Period Beginning During the the End of
Period
Period Period (share) of the Reporting the Period
(share)
(share) (share Period Period (share)
) (share) (share)
Incum
Hu Baifan Chairman 9,667,915 1,933,583 11,601,498 7,250,936 1,450,187 8,701,123
bent
Vice
Hu Incum
Chairman, 10,136,062 2,027,212 12,163,274 7,602,046 1,520,409 9,122,455
Baishan bent
President
Director,
Vice
President,
Shi Chief Incum
7,276,277 1,455,255 8,731,532 5,457,208 1,091,441 6,548,649
Guanqun Financial bent
Officer,
Board
Secretary
Director,
Wang Incum
Vice 6,165,230 1,233,046 7,398,276 4,623,922 924,785 5,548,707
Xuewen bent
President
Wang
Incum
Zhengjian Director 318,750 63,750 382,500 239,062 47,812 286,874
bent
g
Zhou Incum
Director 114,752 22,950 137,702 86,064 17,212 103,276
Guiyang bent
Total -- -- 33,678,986 6,735,796 0 40,414,782 25,259,238 5,051,846 30,311,084
V. Change of the Controlling Shareholders and Actual Controller
Change of the controlling shareholders in the reporting period
□ Applicable √ Not applicable
No change has happened to the controlling shareholder in the reporting period of the Company
Change of the actual controller in the reporting period
54
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
□ Applicable √ Not applicable
No change has happened to the actual controller in the reporting period
55
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Section VIII Information of Preferred Shares
□ Applicable √ Not applicable
There are no preferred shares in the reporting period.
56
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Section IX Situation on Corporate Bonds
□ Applicable √ Not applicable
57
2021 Semi-Annual Report of Zhejiang NHU Company 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
Units of financial reports in the notes: RMB
1. Consolidated Balance Sheet
Prepared by: Zhejiang NHU Co., Ltd.
Unit: RMB
Item June 30, 2021 December 31, 2020
Current Assets:
Cash and Bank Balances 6,412,612,895.26 4,927,657,236.24
Deposit Reservation for Balance
Loans to Banks and Other
Financial Institutions
Trading Financial Assets 1,326,426,200.12 852,227,964.70
Derivative Financial Assets
Notes Receivable 460,973,358.32 332,064,366.59
Accounts Receivable 2,502,876,087.12 1,930,930,930.01
Receivables Financing 33,076,624.55 295,393,346.17
Prepayments 162,474,668.98 116,063,557.59
Premium Receivable
Reinsurance Accounts
Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 210,828,040.94 178,610,951.64
Including: interest receivable
Dividends Receivable
58
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item June 30, 2021 December 31, 2020
Buying Back the Sale of
Financial Assets
Inventories 3,522,689,642.11 3,117,042,558.78
Contract Assets
Holding for-sale assets
Non-current Assets Due within 1
Year
Other Current Assets 738,127,909.93 1,777,569,473.96
Subtotal of Current Assets 15,370,085,427.33 13,527,560,385.68
Non-current Assets:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables
Long-term Equity Investment 358,710,928.96 343,378,891.18
Investment in Other Equity
22,998,147.55 22,998,147.55
Instruments
Other Non-current Financial
Assets
Investment Property
Fixed Assets 13,752,889,539.13 13,914,151,215.54
Construction in progress 2,295,793,123.43 1,325,545,420.56
Productive Biological Assets
Oil and gas assets
Right-of-use Assets 5,015,022.59
Intangible Assets 1,398,680,973.80 1,407,067,129.87
Development Expenditure
Goodwill
Long-term Deferred Expenses 12,891,187.70 13,369,412.48
Deferred Income Tax Assets 69,216,935.10 65,143,706.00
Other Non-current Assets 361,693,524.32 277,793,490.68
Subtotal of Non-current Assets 18,277,889,382.58 17,369,447,413.86
Total Assets 33,647,974,809.91 30,897,007,799.54
59
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item June 30, 2021 December 31, 2020
Current Liabilities:
Short-term Borrowings 2,398,007,852.59 2,363,525,192.53
Loan from the Central Bank
Loan from Banks and Other
Financial Institutions
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 668,896,544.92 497,644,517.23
Accounts Payable 1,445,062,033.91 1,463,728,316.04
Received Prepayments
Contract liabilities 44,962,287.54 56,302,537.11
Financial Assets Sold for
Repurchase
Deposit Taking and Interbank
Deposit
Receiving from Vicariously
Traded Securities
Receiving from Vicariously Sold
Securities
Payroll payable 231,300,374.83 322,646,061.45
Tax Payable 270,781,522.81 268,864,472.38
Other Payables 52,150,619.55 129,839,228.89
Including: interest payable
Dividends Payable
Service Charge and Commission
Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due
1,431,425,253.34 1,275,888,293.32
within 1 Year
Other Current Liabilities 3,406,847.42 4,956,463.49
Subtotal of Current Liabilities 6,545,993,336.91 6,383,395,082.44
Non-current Liabilities:
Insurance Contract Reserves
Long-term Borrowings 5,794,842,788.03 4,136,875,354.33
60
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item June 30, 2021 December 31, 2020
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 5,398,990.60
Long-term Payables
Long-term payroll payable
Expected Liabilities
Deferred Income 886,077,681.09 873,066,181.34
Deferred Income Tax Liabilities 124,527,426.39 99,839,731.45
Other Non-current Liabilities
Subtotal of Non-current Liabilities 6,810,846,886.11 5,109,781,267.12
Total Liabilities 13,356,840,223.02 11,493,176,349.56
Shareholders' Equity:
Share Capital 2,578,394,760.00 2,148,662,300.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 4,130,790,096.84 4,560,522,556.84
Less: Treasury Share
Other Comprehensive Incomes 16,401,379.92 27,803,829.31
Special Reserves 11,642,478.63 9,550,346.85
Surplus Reserves 1,074,331,150.00 1,074,331,150.00
General Risk Reserves
Undistributed Profits 12,419,820,263.45 11,515,384,739.95
Total Shareholders' Equity
20,231,380,128.84 19,336,254,922.95
Attributable to the Parent Company
Minority Shareholders' Equity 59,754,458.05 67,576,527.03
Total Shareholders' Equity 20,291,134,586.89 19,403,831,449.98
Total Liabilities and Shareholders'
33,647,974,809.91 30,897,007,799.54
Equity
Legal representative: Hu Baifan Chief accountant: Shi Guanqun Accounting officer: Wang Xiaobi
61
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
2. Balance Sheet of the Parent Company
Unit: RMB
Item June 30, 2021 December 31, 2020
Current Assets:
Cash and Bank Balances 4,366,382,608.74 2,790,740,377.97
Trading Financial Assets 1,251,547,205.78 851,949,945.63
Derivative Financial Assets
Notes receivable 294,973,691.43 332,064,366.59
Accounts receivable 843,906,718.05 704,086,691.03
Receivables Financing
Prepayments 5,834,105.35 1,631,550.49
Other Receivables 4,165,535,890.92 4,247,680,763.92
Including: interest receivable
Dividends Receivable 186,000,000.00
Inventories 560,496,728.67 566,205,506.19
Contract Assets
Holding for-sale assets
Non-current Assets Due within 1
Year
Other Current Assets 2,465,340.09 552,859,738.36
Subtotal of Current Assets 11,491,142,289.03 10,047,218,940.18
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables
Long-term Equity Investment 7,049,501,465.71 6,372,637,172.92
Investment in Other Equity
22,998,147.55 22,998,147.55
Instruments
Other Non-current Financial
Assets
Investment Property
Fixed Assets 710,974,206.57 737,784,631.31
Construction in progress 1,326,286.13
Productive Biological Assets
62
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item June 30, 2021 December 31, 2020
Oil and gas assets
Right-of-use Assets 3,218,475.32
Intangible Assets 106,175,960.34 105,425,506.93
Development Expenditure
Goodwill
Long-term Deferred Expenses 5,093,130.19 5,919,401.23
Deferred Income Tax Assets 40,798,010.31 42,345,228.44
Other Non-current Assets 3,654,720.91 7,202,988.32
Subtotal of Non-current Assets 7,943,740,403.03 7,294,313,076.70
Total Assets 19,434,882,692.06 17,341,532,016.88
Current Liabilities:
Short-term Borrowings 1,443,710,035.22 1,243,628,965.48
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 142,847,121.26 155,953,161.50
Accounts Payable 208,173,112.95 100,374,347.92
Received Prepayments
Contract liabilities 2,783,099.28 8,494,783.78
Payroll payable 55,801,303.13 82,688,797.50
Tax Payable 51,425,499.25 33,578,246.55
Other Payables 17,913,058.01 15,543,517.50
Including: interest payable
Dividends Payable
Holding for-sale liabilities
Non-current Liabilities Due
740,727,989.58 635,930,890.44
within 1 Year
Other Current Liabilities 361,802.91 1,104,321.89
Subtotal of Current Liabilities 2,663,743,021.59 2,277,297,032.56
Non-current Liabilities:
Long-term Borrowings 3,539,372,165.41 2,209,521,076.40
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
63
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item June 30, 2021 December 31, 2020
Lease Liabilities 3,303,921.56
Long-term Payables
Long-term payroll payable
Expected Liabilities
Deferred Income 16,867,691.54 18,884,041.56
Deferred Income Tax Liabilities 16,149,009.81 13,011,703.03
Other Non-current Liabilities
Subtotal of Non-current Liabilities 3,575,692,788.32 2,241,416,820.99
Total Liabilities 6,239,435,809.91 4,518,713,853.55
Shareholders' Equity:
Share Capital 2,578,394,760.00 2,148,662,300.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 3,871,120,415.45 4,300,852,875.45
Less: Treasury Share
Other Comprehensive Incomes 506,954.43 506,954.43
Special Reserves
Surplus Reserves 1,074,331,150.00 1,074,331,150.00
Undistributed Profits 5,671,093,602.27 5,298,464,883.45
Total Shareholders' Equity 13,195,446,882.15 12,822,818,163.33
Total Liabilities and Shareholders'
19,434,882,692.06 17,341,532,016.88
Equity
3. Consolidated Income Statement
Unit: RMB
Item 2021 Semi-Annual 2020 Semi-Annual
I. Total Operating Revenue 7,254,221,638.01 5,303,165,502.25
Including: Operating Income 7,254,221,638.01 5,303,165,502.25
Interest Income
Earned Premiums
Service Charge and
Commission Income
64
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
II. Total Operating Cost 4,555,167,761.74 2,805,793,794.44
Including: Operating Cost 3,755,325,045.02 2,143,809,060.49
Interest Expenditures
Service Charge and
Commission Expenses
Surrender Value
Net Claims Paid
The Net Amount
Withdrawn for Insurance Liability
Reserves
Policyholder Dividend
Expense
Reinsurance Cost
Taxes and Surcharges 60,794,324.08 50,570,859.70
Sales expenses 55,479,574.90 132,057,487.52
Administration expenses 187,505,914.10 183,896,476.30
Research and development
351,532,764.55 219,152,938.63
expense
Financial expenses 144,530,139.09 76,306,971.80
Including: interest
162,484,715.95 110,160,929.73
expenses
Interest Income 72,107,022.92 15,204,954.21
Add: Other income 74,696,050.67 45,648,659.95
Investment Income (Mark "-"
44,982,466.91 68,798,092.59
for Loss)
Including: Investment
Income from Affiliates and Joint 15,735,226.24 5,431,597.21
Ventures
Profits from recognition
Termination of Financial Assets at
Amortized Cost
Exchange Gains (Mark "-"
for Losses)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair 23,671,758.14 10,437,317.13
65
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
value (losses marked with "-")
Credit Impairment Losses
-33,637,204.20 -48,988,895.82
(Mark "-" for Loss)
Asset Impairment Losses
-6,714,482.90 -2,095,132.82
(Mark "-" for Loss)
Asset Disposal Income
1,065,564.79 84,077.01
(Mark "-" for Loss)
III. Operating Profit (Mark "-" for
2,803,118,029.68 2,571,255,825.85
Loss)
Add: Non-operating Revenues 10,346,441.45 914,723.22
Less: Non-operating Expenses 1,919,029.53 11,965,365.14
IV. Total Profit (Mark "-" for Total
2,811,545,441.60 2,560,205,183.93
Loss)
Less: Income Tax Expense 394,709,861.22 345,891,461.03
V. Net Profit (Mark "-" for Net Loss) 2,416,835,580.38 2,214,313,722.90
(I) Classified by operation continuity
1. Net Profit as a Going Concern
2,416,835,580.38 2,214,313,722.90
(Mark "-" for Net Loss)
2. Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
(II) Classified by the attribution of
ownership
1. Net Profit Attributable to the
2,408,499,133.50 2,208,930,277.20
Parent Company's Owner
2. Minority Shareholders' Profit
8,336,446.88 5,383,445.70
and Loss
VI. Net Amount of Other
-14,379,132.25 11,140,618.65
Comprehensive Incomes after Tax
Net Amount of Other
Comprehensive Incomes after Tax
-11,402,449.39 10,034,354.34
Attributable to the Parent Company's
Owner
(1) Other comprehensive income
that cannot be reclassified as P/L
1. Re-measure the
variation of the defined benefit plan
2. Other comprehensive
66
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
income that cannot be transferred to
P/L under the equity method
3. Changes in the fair
value of investment in other equity
instruments
4. Changes in the fair
value of the credit risk of the enterprise
5. Others
(II) Other comprehensive income
-11,402,449.39 10,034,354.34
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
under the equity method
2. Changes in the fair
value of investment in other creditor's
rights
3. Financial assets
reclassified into other comprehensive
income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge
reserves
6. Currency translation
-11,402,449.39 10,034,354.34
difference
7. Others
Net Amount of Other
Comprehensive Incomes After Tax -2,976,682.86 1,106,264.31
Attributable to Minority Shareholders
VII. Total Comprehensive Income 2,402,456,448.13 2,225,454,341.55
Total Comprehensive Income
Attributable to the Parent Company's 2,397,096,684.11 2,218,964,631.54
Owner
Total Comprehensive Income
5,359,764.02 6,489,710.01
Attributable to Minority Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.93 0.86
67
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
(II) Diluted Earnings per Share 0.93 0.86
In the case of enterprise consolidation under the same control in the current period, the net profit realized by the consolidated party
before consolidation was RMB 0.00 and the net profit realized by the consolidated party in the previous period was RMB
-2,969,102.52.
Legal representative: Hu Baifan Chief accountant: Shi Guanqun Accounting officer: Wang Xiaobi
4. Income Statement of the Parent Company
Unit: RMB
Item 2021 Semi-Annual 2020 Semi-Annual
I. Operating Income 2,405,071,741.42 2,245,024,997.07
Less: Operating Cost 1,649,769,660.92 1,363,865,308.22
Taxes and Surcharges 14,334,032.09 10,364,905.30
Sales expenses 12,902,562.24 14,314,223.18
Administration expenses 68,371,878.28 62,234,313.30
Research and development
96,647,099.84 79,611,214.13
expense
Financial expenses 29,735,303.93 74,671,657.49
Including: interest
86,481,023.12 84,061,987.55
expenses
Interest Income 61,283,871.93 8,820,555.09
Add: Other income 20,317,226.28 17,932,941.46
Investment Income (Mark
1,399,890,573.23 1,109,369,211.83
"-" for Loss)
Including: Investment
Income from Affiliates and Joint 16,864,292.79 7,179,396.25
Ventures
Profits from
Derecognition of Financial Assets at
Amortized Cost (Mark "-" for Loss)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in
8,196,887.24 8,520,857.22
fair value (losses marked with "-")
Credit Impairment Losses
6,804,182.64 13,874,426.31
(Mark "-" for Loss)
Asset Impairment Losses
-6,120,461.67 -1,841,639.99
(Mark "-" for Loss)
68
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
Asset Disposal Income
-2,538,880.18 -119,089.10
(Mark "-" for Loss)
II. Operating Profit (Mark "-" for
1,959,860,731.66 1,787,700,083.18
Loss)
Add: Non-operating Revenues 4,706,210.71 17,861.51
Less: Non-operating Expenses 1,100,000.00 3,516,986.34
III. Total Profit (Mark "-" for Total
1,963,466,942.37 1,784,200,958.35
Loss)
Less: Income Tax Expense 86,774,613.55 116,943,623.85
IV. Net Profit (Mark "-" for Net Loss) 1,876,692,328.82 1,667,257,334.50
(I) Net Profit as a Going
Concern (Mark "-" for Net Loss)
(II) Net Profit of Discontinued
1,876,692,328.82 1,667,257,334.50
Operation (Mark "-" for Net Loss)
V. Net Amount of Other
Comprehensive Incomes After Tax
(1) Other comprehensive income
that cannot be reclassified as P/L
1. Re-measure the
variation of the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
P/L under the equity method
3. Changes in the fair
value of investment in other equity
instruments
4. Changes in the fair
value of the credit risk of the
enterprise
5. Others
(II) Other comprehensive
income that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
under the equity method
2. Changes in the fair
value of investment in other creditor's
69
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
rights
3. Financial assets
reclassified into other comprehensive
income
4. Provisions for the
credit impairment of investment in
other creditor's rights
5. Cash flow hedge
reserves
6. Currency translation
difference
7. Others
VI. Total Comprehensive Income 1,876,692,328.82 1,667,257,334.50
VII. Earnings per Share:
(I) Basic Earnings per Share
(II) Diluted Earnings per Share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2021 Semi-Annual 2020 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
6,823,103,213.62 4,944,220,993.13
and Provision of Services
Net Increase in Customer's Bank
Deposits and Interbank Deposits
Net Increase in Loan from the
Central Bank
Net Increase in Loan from Other
Financial Institutions
Cash Arising from Receiving
Premiums for the Original Insurance
Contract
Net Amount Arising from
Reinsurance Business
Net Increase in Deposits and
Investments from Policyholders
Cash Arising from Interests,
70
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
Service Charges and Commissions
Net Increase in Loan from
Banks and Other Financial
Institutions
Net Increase in Repurchase
Business Funds
Net Amount of Cash Received
from the Vicariously Traded
Securities
Tax Refund 515,274,673.62 347,076,026.47
Other Cash Receipts Relating to
166,303,614.38 60,075,389.66
Operating Activities
Subtotal of cash inflow from
7,504,681,501.62 5,351,372,409.26
operational activities
Cash Paid for Merchandise and
3,731,367,763.85 2,861,983,420.55
Services
Net Increase in Loans and
Advances to Customers
Net Increase in Deposits with
Central Bank and Other Financial
Institutions
Cash Paid for Original Insurance
Contract Claims
Net increase of funds lent
Cash Paid for Interests, Service
Charges and Commissions
Cash Paid for Policy Dividends
Cash Paid to and for Employees 787,203,766.37 641,433,701.64
Cash Paid for Taxes and
522,757,776.92 530,604,731.09
Surcharges
Other Cash Payments Relating
192,194,712.71 189,790,335.87
to Operating Activities
Subtotal of cash outflow from
5,233,524,019.85 4,223,812,189.15
operational activities
Net cash flow generated by operating
2,271,157,481.77 1,127,560,220.11
activities
II. Cash Flow from Investment
71
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
Activities:
Cash Arising from Disposal of
2,276,538.05
Investments
Cash Arising from Investment
37,215,654.69 67,855,515.64
Incomes
Net Cash Arising from Disposal
of Fixed Assets, Intangible Assets and 8,502,600.00 1,507,223.49
Other Long-term Assets
Net Cash Arising from Disposal
of Subsidiaries and Other Business
Units
Other Cash Receipts Relating to
1,800,000,000.00 3,926,094,561.00
Investing Activities
Subtotal of cash inflow from
1,845,718,254.69 3,997,733,838.18
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets,
1,308,263,685.39 1,078,610,102.04
Intangible Assets and Other
Long-term Assets
Cash Paid for Investments
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business 83,904,479.79
Units
Other Cash Payments Relating
1,520,000,000.00 1,400,000,000.00
to Investing Activities
Subtotal of cash outflows from
2,912,168,165.18 2,478,610,102.04
investment activities
Net amount of cash flow generated by
-1,066,449,910.49 1,519,123,736.14
investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
Investments
Including: Cash Arising from
Subsidiaries Absorbing Investments
by Minority Shareholders
Cash Arising from Loan 4,130,981,309.28 2,537,832,892.26
72
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
Other Cash Receipts Relating to
73,000,000.00
Financing Activities
Subtotal of cash inflow from
4,130,981,309.28 2,610,832,892.26
financing activities
Cash Paid for Borrowings
2,095,709,235.89 2,580,070,226.36
Repayment
Cash Paid for Distribution of
Dividends and Profits or Payment of 1,680,134,920.84 670,702,742.53
Interests
Including: Dividends and Profits
Paid to Minority Shareholders by
Subsidiaries
Other Cash Payments Relating
3,363,407.69 9,457,429.96
to Financing Activities
Subtotal of cash outflow from
3,779,207,564.42 3,260,230,398.85
financing activities
Net cash flow generated by financing
351,773,744.86 -649,397,506.59
activities
IV. Impact of Fluctuation in
Exchange Rate on Cash and Cash -43,624,594.66 30,471,891.80
Equivalents
V. Net Increase in Cash and Cash
1,512,856,721.48 2,027,758,341.46
Equivalents
Add: Cash and Cash Equivalents
4,669,306,776.09 3,213,557,815.42
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
6,182,163,497.57 5,241,316,156.88
End of the Period
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2021 Semi-Annual 2020 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
2,552,072,193.45 1,924,439,288.16
and Provision of Services
Tax Refund 48,584,987.43 51,541,889.88
Other Cash Receipts Relating to 84,964,666.40 26,370,414.41
73
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
Operating Activities
Subtotal of cash inflow from
2,685,621,847.28 2,002,351,592.45
operational activities
Cash Paid for Merchandise and
1,633,400,198.22 2,215,126,164.30
Services
Cash Paid to and for Employees 149,783,536.93 132,411,814.25
Cash Paid for Taxes and
78,513,703.83 106,629,378.77
Surcharges
Other Cash Payments Relating
55,045,354.56 38,615,969.62
to Operating Activities
Subtotal of cash outflow from
1,916,742,793.54 2,492,783,326.94
operational activities
Net cash flow generated by operating
768,879,053.74 -490,431,734.49
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
2,182,000.00
Investments
Cash Arising from Investment
1,162,849,287.12 1,042,241,881.89
Incomes
Net Cash Arising from Disposal
of Fixed Assets, Intangible Assets and 995,678.52
Other Long-term Assets
Net Cash Arising from Disposal
of Subsidiaries and Other Business
Units
Other Cash Receipts Relating to
4,883,233,008.66 6,140,177,549.93
Investing Activities
Subtotal of cash inflow from
6,046,082,295.78 7,185,597,110.34
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets,
2,560,544.11 3,013,705.76
Intangible Assets and Other
Long-term Assets
Cash Paid for Investments 660,000,000.00 800,000,000.00
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
74
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item 2021 Semi-Annual 2020 Semi-Annual
Other Cash Payments Relating
4,589,000,000.00 3,234,000,000.00
to Investing Activities
Subtotal of cash outflows from
5,251,560,544.11 4,037,013,705.76
investment activities
Net amount of cash flow generated by
794,521,751.67 3,148,583,404.58
investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
Investments
Cash Arising from Loan 3,055,061,200.00 1,581,191,700.00
Other Cash Receipts Relating to
50,000,000.00
Financing Activities
Subtotal of cash inflow from
3,055,061,200.00 1,631,191,700.00
financing activities
Cash Paid for Borrowings
1,419,380,427.30 2,240,012,727.27
Repayment
Cash Paid for Distribution of
Dividends and Profits or Payment of 1,588,570,689.93 644,955,367.68
Interests
Other Cash Payments Relating
2,810,055.12 3,661,792.20
to Financing Activities
Subtotal of cash outflow from
3,010,761,172.35 2,888,629,887.15
financing activities
Net cash flow generated by financing
44,300,027.65 -1,257,438,187.15
activities
IV. Impact of Fluctuation in
Exchange Rate on Cash and Cash -8,249,728.64 2,300,417.37
Equivalents
V. Net Increase in Cash and Cash
1,599,451,104.42 1,403,013,900.31
Equivalents
Add: Cash and Cash Equivalents
2,593,272,980.50 1,339,946,642.54
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
4,192,724,084.92 2,742,960,542.85
End of the Period
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
75
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Unit: RMB
2021 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity Instruments Minority Total
Item
Less: Other General
Share Capital Special Surplus Undistribut Shareholders' Shareholders'
Treasur Comprehensive Risk Others Subtotal
Capital Reserves Reserves Reserves ed Profits Equity Equity
Preferred Perpetual Othe y Share Incomes Reserves
Stocks Bonds rs
I. Balance at
2,148,66 4,560,52 9,550,346. 1,074,33 11,515,38 19,336,254, 19,403,831,
the End of 27,803,829.31 67,576,527.03
2,300.00 2,556.84 85 1,150.00 4,739.95 922.95 449.98
Last Year
Add:
Changes in
Accounting
Policies
Correction of
Errors in the
Previous
Period
Consolidated
under the
Same Control
Others
76
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
II. Balance at
2,148,66 4,560,52 9,550,346. 1,074,33 11,515,38 19,336,254, 19,403,831,
the Start of 27,803,829.31 67,576,527.03
2,300.00 2,556.84 85 1,150.00 4,739.95 922.95 449.98
This Year
III. Increases
or Decreases
429,732, -429,73 -11,402,449.3 2,092,131. 904,435,5 895,125,205 887,303,136
in This Period -7,822,068.98
460.00 2,460.00 9 78 23.50 .89 .91
(Mark "-" for
Decreases)
(I) Total
-11,402,449.3 2,408,499, 2,397,096,6 2,402,456,4
Comprehensi 5,359,764.02
9 133.50 84.11 48.13
ve Income
(II)
Shareholders'
Contribution
and
Reduction in
Capital
1． Common
stock invested
by the owner
2． Capital
Invested by
Holders of
Other Equity
Instruments
3． Amount
of
77
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Share-based
Payments
Recorded into
Shareholders'
Equity
4． Others
(III) Profit -1,504,06 -1,504,063,6 -13,181,833.0 -1,517,245,4
Distribution 3,610.00 10.00 0 43.00
1． Appropri
ation of
Surplus
Reserves
2． Appropri
ation of
General Risk
Reserves
3． Distribut
ion to Owners -1,504,06 -1,504,063,6 -13,181,833.0 -1,517,245,4
(or 3,610.00 10.00 0 43.00
Shareholders)
4． Others
(IV) Internal
Carry-forwar
429,732, -429,73
d of
460.00 2,460.00
Shareholders'
Equity
1． Capital 429,732, -429,73
78
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Reserves 460.00 2,460.00
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-fo
rward
retained
earnings of
the variation
of the defined
benefit plan
5． Other
Carry-forwar
d Retained
Earnings of
the
Comprehensi
79
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
ve Income
6. Others
(V) Special 2,092,131. 2,092,131.7 2,092,131.7
Reserves 78 8 8
1． Withdra
5,948,742. 5,948,742.7 5,948,742.7
wal in this
71 1 1
period
2． Used in -3,856,61 -3,856,610.9 -3,856,610.9
This Period 0.93 3 3
(VI) Others
IV. Balance at
2,578,39 4,130,79 11,642,47 1,074,33 12,419,82 20,231,380, 20,291,134,
the End of 16,401,379.92 59,754,458.05
4,760.00 0,096.84 8.63 1,150.00 0,263.45 128.84 586.89
This Period
Amount of Previous Period
Unit: RMB
2020 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner
Minority Total
Item Other Equity Instruments Less: Other Special
Share Capital Surplus General Risk Undistribut Shareholders' Shareholders'
Preferred Perpetual Othe Treasur Comprehensive Reserve Others Subtotal
Capital Reserves Reserves Reserves ed Profits Equity Equity
Stocks Bonds rs y Share Incomes s
I. Balance
at the End 2,148,66 4,709,06 5,337,5 951,844, 9,158,233,9 17,010,913,3 17,063,395,447.
37,765,885.17 52,482,111.04
of Last 2,300.00 8,757.66 05.56 916.62 71.76 36.77 81
Year
80
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Add:
Changes in
Accounting
Policies
Correction
of Errors in
the
Previous
Period
Consolidate
d under the
Same
Control
Others
II. Balance
at the Start 2,148,66 4,709,06 5,337,5 951,844, 9,158,233,9 17,010,913,3 17,063,395,447.
37,765,885.17 52,482,111.04
of This 2,300.00 8,757.66 05.56 916.62 71.76 36.77 81
Year
III.
Increases or
Decreases
2,948,5 1,134,599,1 1,147,582,00 1,154,071,718.9
in This 10,034,354.34 6,489,710.01
27.39 27.20 8.93 4
Period
(Mark "-"
for
81
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Decreases)
(I) Total
Comprehen 2,208,930,2 2,218,964,63 2,225,454,341.5
10,034,354.34 6,489,710.01
sive 77.20 1.54 5
Income
(II)
Shareholder
s'
Contributio
n and
Reduction
in Capital
1． Comm
on stock
invested by
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of
Share-base
d Payments
Recorded
into
82
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Shareholder
s' Equity
4． Others
(III) Profit -1,074,331, -1,074,331,15 -1,074,331,150.
Distribution 150.00 0.00 00
1． Appro
priation of
Surplus
Reserves
2． Appro
priation of
General
Risk
Reserves
3． Distrib
ution to
-1,074,331, -1,074,331,15 -1,074,331,150.
Owners (or
150.00 0.00 00
Shareholder
s)
4． Others
(IV)
Internal
Carry-forw
ard of
Shareholder
s' Equity
1． Capital
83
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the
variation of
the defined
benefit plan
5． Other
Carry-forw
ard
Retained
Earnings of
84
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
the
Comprehen
sive
Income
6. Others
(V) Special 2,948,5
2,948,527.39 2,948,527.39
Reserves 27.39
1． Withdr
6,046,8
awal in this 6,046,872.68 6,046,872.68
72.68
period
2． Used in -3,098,
-3,098,345.29 -3,098,345.29
This Period 345.29
(VI) Others
IV. Balance
at the End 2,148,66 4,709,06 8,286,0 951,844, 10,292,833, 18,158,495,3 18,217,467,166.
47,800,239.51 58,971,821.05
of This 2,300.00 8,757.66 32.95 916.62 098.96 45.70 75
Period
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2021 Semi-Annual
Other Equity Instruments
Less: Other
Item Share Special Undistributed Total Shareholders'
Preferr Perpet
Capital Reserves Treasury Comprehensive Surplus Reserves Others
Capital ed ual Others Reserves Profits Equity
Share Incomes
Stocks Bonds
85
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
I. Balance
at the End 2,148,662,
4,300,852,875.45 506,954.43 1,074,331,150.00 5,298,464,883.45 12,822,818,163.33
of Last 300.00
Year
Add:
Changes in
Accounting
Policies
Correction
of Errors in
the
Previous
Period
Others
II. Balance
at the Start 2,148,662,
4,300,852,875.45 506,954.43 1,074,331,150.00 5,298,464,883.45 12,822,818,163.33
of This 300.00
Year
III.
Increases or
Decreases
in This 429,732,4
-429,732,460.00 372,628,718.82 372,628,718.82
Period 60.00
(Mark "-"
for
Decreases)
86
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
(I) Total
Comprehen
1,876,692,328.82 1,876,692,328.82
sive
Income
(II)
Shareholder
s'
Contributio
n and
Reduction
in Capital
1． Comm
on stock
invested by
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of
Share-base
d Payments
Recorded
into
Shareholder
87
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
s' Equity
4． Others
(III) Profit
-1,504,063,610.00 -1,504,063,610.00
Distribution
1． Appro
priation of
Surplus
Reserves
2． Distrib
ution to
Owners (or -1,504,063,610.00 -1,504,063,610.00
Shareholder
s)
3． Others
(IV)
Internal
Carry-forw 429,732,4
-429,732,460.00
ard of 60.00
Shareholder
s' Equity
1． Capital
Reserves
Transferred 429,732,4
-429,732,460.00
into Capital 60.00
(or Share
Capital)
2． Surplus
88
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the
variation of
the defined
benefit plan
5． Other
Carry-forw
ard
Retained
Earnings of
the
Comprehen
sive
Income
6. Others
(V) Special
89
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Reserves
1． Withdr
awal in this
period
2． Used in
This Period
(VI) Others
IV. Balance
at the End 2,578,394,
3,871,120,415.45 506,954.43 1,074,331,150.00 5,671,093,602.27 13,195,446,882.15
of This 760.00
Period
Amount of Previous Period
Unit: RMB
2020 Semi-Annual
Other Equity Instruments Other
Item Share Capital Comprehen Special Undistributed Total Shareholders'
Preferr Perpetu
Less: Treasury Share Surplus Reserves Others
Capital ed al Others Reserves sive Reserves Profits Equity
Stocks Bonds Incomes
I. Balance at
2,148,662,3 4,300,852,875.4
the End of 506,954.43 951,844,916.62 4,488,013,408.28 11,889,880,454.78
00.00 5
Last Year
Add:
Changes in
Accounting
Policies
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Correction of
Errors in the
Previous
Period
Others
II. Balance at
2,148,662,3 4,300,852,875.4
the Start of 506,954.43 951,844,916.62 4,488,013,408.28 11,889,880,454.78
00.00 5
This Year
III. Increases
or Decreases
in This Period 592,926,184.50 592,926,184.50
(Mark "-" for
Decreases)
(I) Total
Comprehensi 1,667,257,334.50 1,667,257,334.50
ve Income
(II)
Shareholders'
Contribution
and
Reduction in
Capital
1． Common
stock invested
by the owner
2． Capital
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Invested by
Holders of
Other Equity
Instruments
3． Amount
of
Share-based
Payments
Recorded into
Shareholders'
Equity
4． Others
(III) Profit
-1,074,331,150.00 -1,074,331,150.00
Distribution
1． Appropri
ation of
Surplus
Reserves
2． Distribut
ion to Owners
-1,074,331,150.00 -1,074,331,150.00
(or
Shareholders)
3． Others
(IV) Internal
Carry-forwar
d of
Shareholders'
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-fo
rward
retained
earnings of
the variation
of the defined
benefit plan
5． Other
Carry-forwar
d Retained
Earnings of
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
the
Comprehensi
ve Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
(VI) Others
IV. Balance at
2,148,662,3 4,300,852,875.4
the End of 506,954.43 951,844,916.62 5,080,939,592.78 12,482,806,639.28
00.00 5
This Period
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
III. Basic Information about the Company
Zhejiang NHU Co., Ltd. (hereinafter referred to as the Company or our company) was approved by the former Securities
Commission of People's Government of Zhejiang Province, Zhejiang Securities Commission [1999] No. 9 document, jointly initiated
and established by Xinchang County Synthetic Chemical Plant (renamed NHU Holding Group Co., Ltd. on November 17, 2009) and
nine natural persons including Zhang Pingyi, Yuan Yizhong, Shi Cheng, Hu Baishan, Shi Guanqun, Wang Xuewen, Shi Sanfu Cui
Xinrong, Wang Xulin, registered in Zhejiang Administration for Industry and Commerce on April 5, 1999, and headquartered in
Shaoxing, Zhejiang Province. The Company now holds a business license with a unified social credit code of 91330000712560575G,
a registered capital of RMB 2,578,394,760.00 and a total of 2,578,394,760.00 shares (par value of RMB 1 per share). Among them,
the number of liquid shares with limited sales conditions is 30,311,084; The number of liquid shares with unlimited sales conditions
is 2,548,083,676. The Company's shares were listed and traded in Shenzhen Stock Exchange on June 25, 2004.
The Company belongs to the pharmaceutical manufacturing industry. Principal business activities are the production and sale of
nutrition, flavor and fragrance and new polymer materials. Products mainly include: nutrition, flavor and fragrance and new polymer
materials.
This financial statement has been approved for public by the seventh meeting of the eighth session of the Board of Directors of
the Company on August 18, 2021.
The Company has included 23 subsidiaries such as Xinchang Vitamin, NHU Import and Export, and Zhejiang VYS in the
scope of consolidated financial statements of the current period. For details, please refer to the description of IX.1 of the financial
report in this section.
IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The financial statement of the Company has been prepared on the basis of continuing operations.
2. Going concern
The Company has no items or circumstances that cause major doubts about its ability to continue operations within 12 months
from the end of the reporting period.
V. Significant Accounting Polices and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
According to the actual production and operation characteristics, the Company has formulated specific accounting policies and
accounting estimates for transactions or items such as impairment of financial instruments, depreciation of fixed assets, amortization
of intangible assets, and revenue recognition.
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting Standard for Business
Enterprises and truly and completely reflect the company's financial position, operating results, cash flow and other relevant
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information.
2. Accounting period
The fiscal year starts from January 1 and ends on December 31 of the Gregorian calendar.
3. Operating cycle
Except for the real estate industry, the business cycle of the Company's business is relatively short, and 12 months is taken as
the liquidity classification standard of assets and liabilities. The business cycle of the real estate industry generally takes more than
12 months from real estate development to sales and revenue generation. The specific cycle is determined according to the project
development, and its business cycle is taken as the liquidity classification standard of assets and liabilities.
4. Functional currency
The Company and its domestic subsidiaries take CNY as the functional currency, and overseas subsidiaries such as NHU (Hong
Kong) Trading Co., Ltd. and NHU Europe GmbH are engaged in overseas operations. The currency in the main economic
environment in which they operate is selected as the functional currency.
5. The accounting treatment of business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
1. Accounting treatment method for business combination under the same control
The assets and liabilities acquired by the Company in business combination are measured according to the carrying amount of
the combined party in the consolidated financial statements of the ultimate controlling party on the combination date. The Company
adjusts the capital reserve according to the difference between carrying amount share of the owner's equity of the combined party in
the consolidated financial statements of the ultimate controlling party and the carrying amount of the combination consideration paid
or the total par value of issued shares; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
2. Accounting treatment method for business combination not under the same control
The Company recognizes the positive balance between the combination costs and fair value shares of identifiable net assets of
the acquiree as goodwill on the acquisition date; If the combination cost is less than the fair value of identifiable net assets of the
acquiree obtained in the combination, first review the measurement of the fair value of identifiable assets, liabilities and contingent
liabilities of the acquiree and the combination cost, if the combination cost is still less than the fair value of identifiable net assets of
the acquiree obtained in the combination after review, the difference shall be included in the current profits and losses.
6. Preparation method of consolidated financial statements
The parent company brings all subsidiaries under its control into the consolidation scope of the consolidated financial statements.
The consolidated financial statements are prepared by the parent company in accordance with the "Accounting Standard for Business
Enterprises No.33——Consolidated Financial Statements" based on the financial statements of the parent company and its
subsidiaries and other relevant materials.
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
7. Recognition criteria of cash and cash equivalents
The cash listed in the cash flow statement refers to the cash on hand and deposits that are available for payment at any time.
Cash equivalents refer to the investments held by enterprises which are short-term, highly liquid, and easy to be converted into
known amounts of cash and have little risk of value change.
8. Conversion of transactions and financial statements denominated in foreign currencies
1. Translation of foreign currency business
When the foreign currency transaction is initially recognized, it is converted into CNY at the approximate exchange rate of the
spot exchange rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spot
exchange rate on the balance sheet date. The exchange difference arising from different exchange rates, in addition to the exchange
difference between the principal and interest of foreign currency special Loan related to the acquisition and construction of assets
eligible for capitalization, is included in the current profits and losses; The foreign currency non-monetary items measured at
historical cost are still translated at the approximate exchange rate of the spot exchange rate on the transaction date, and the CNY
amount is not changed; The foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on
the date when the fair value is determined, and the difference is included in the current profits and losses or other comprehensive
income.
2. Translation of foreign currency financial statement
The asset and liability items in the balance sheet are translated at the spot exchange rate on the balance sheet date; Except for the
"undistributed profit" item, other items of owner's equity are translated at the spot exchange rate on the transaction date; The income
and expense items in the income statement are translated at the approximate exchange rate of the spot exchange rate on the
transaction date. The translation difference of foreign currency financial statements generated according to the above translation is
included in other comprehensive income.
9. Financial instruments
1.Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories on initial recognition: (1) Financial assets measured at
amortized cost; (2) Financial assets measured at fair value with changes included in other comprehensive income; (3) Financial assets
measured at fair value through profit or loss.
Financial liabilities are classified into the following four categories on initial recognition: (1) Financial liabilities measured at
fair value through profit or loss; (2) Financial liabilities arising from that the transfer of financial assets does not meet the conditions
for derecognition or continues to be involved in the transferred financial assets; (3) Financial guarantee contracts that do not belong
to (1) or (2) above, and loan commitments that do not belong to (1) above and lend at a lower market interest rate; (4) Financial
liabilities measured at amortized cost.
2. Recognition basis, measurement method and derecognition conditions of financial assets and financial liabilities
(1) Recognition basis and initial measurement method of financial assets and financial liabilities
A financial asset or financial liability is recognized when the Company becomes a party to the financial instrument contract.
When financial assets or financial liabilities are initially recognized, fair value is taken for measurement; For financial assets and
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
financial liabilities measured at fair value through profit or loss, relevant transaction costs are directly included in the current profits
and losses; For other types of financial assets or financial liabilities, relevant transaction costs are included in the initially recognized
amount. However, if the accounts receivable initially recognized by the Company does not contain major financing components or
the Company does not consider the financing components in the contract less than one year, the initial measurement shall be made
according to the transaction price defined in the "Accounting Standard for Business Enterprises No. 14——Revenue".
(2) Subsequent measurement methods of financial assets
1) Financial assets measured at amortized cost
The effective interest rate method is adopted for subsequent measurement in accordance with the amortized cost. The gains or
losses arising from financial assets measured at amortized cost and not part of any hedging relationship are included in the current
profits and losses when they are derecognized, reclassified, amortized using the effective interest rate method or recognized as
impairment.
2) Debt instrument investment measured at fair value with changes included in other comprehensive income
Fair value is adopted for subsequent measurement. The interest, impairment losses or gains and exchange gains and losses
calculated by the effective interest rate method are included in the current profits and losses, and other gains or losses are included in
other comprehensive income. Upon derecognition, the accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in the current profits and losses.
3) Equity instrument investment measured at fair value with changes included in other comprehensive income
Fair value is adopted for subsequent measurement. Dividends acquired (except those belonging to the recovery part of
investment costs) are included in the current profits and losses, and other gains or losses are included in other comprehensive income.
Upon derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred out of other
comprehensive income and included in retained earnings.
4) Financial assets measured at fair value through profit or loss
The subsequent measurement is carried out at fair value, and the gains or losses resulted (including interest and dividend income)
are included in the current profits and losses, unless the financial asset is part of the hedging relationship.
(3) Subsequent measurement method of financial liabilities
1) Financial liabilities measured at fair value through profit or loss
Such financial liabilities include trading financial liabilities (including derivatives belonging to financial liabilities) and financial
liabilities designated to be measured at fair value through profit or loss. Such financial liabilities are subsequently measured at fair
value. The amount of changes in the fair value of financial liabilities designated to be measured at fair value through profit or loss
due to changes in the Company's own credit risk are included in other comprehensive income, unless the treatment will cause or
expand the accounting mismatch in the profit or loss. Other gains or losses arising from such financial liabilities (including interest
expenses with the exception of changes in the fair value caused by changes in the Company's own credit risk) are included in the
current profits and losses, unless the financial liabilities are part of the hedging relationship. Upon derecognition, the accumulated
gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included
in retained earnings.
2) Financial liabilities arising from that the transfer of financial assets does not meet the conditions for derecognition or
continues to be involved in the transferred financial assets;
Measure in accordance with the relevant provisions of the "Accounting Standard for Business Enterprises No. 23——Transfer
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
of Financial Assets".
3) Financial guarantee contracts that do not belong to (1) or (2) above, and loan commitments that do not belong to (1) above
and lend at a lower market interest rate
After initial recognition, subsequent measurement shall be made according to the higher of the following two amounts: ① The
amount of loss reserves determined according to the provisions on impairment of financial instruments; ② The balance of the
initially recognized amount after deducting the accumulated amortization determined in accordance with the relevant provisions of
the "Accounting Standard for Business Enterprises No. 14——Revenue".
4) Financial liabilities measured at amortized cost
Adopt the effective interest method to measure at amortized cost. The gains or losses arising from financial liabilities measured
at amortized cost and not part of any hedging relationship are included in the current profits and losses when they are derecognized
and amortized according to the effective interest rate method.
(4) Derecognition of financial assets and financial liabilities
1) When one of the following conditions is met, financial assets are derecognized:
① The contractual right to receive cash flows from financial assets has been terminated;
② Financial assets have been transferred, and this transfer meets the provisions on the derecognition of financial assets in the
"Accounting Standard for Business Enterprises No. 23——Transfer of Financial Assets"
2) When the current obligation of a financial liability (or part thereof) has been discharged, the derecognition of the financial
liability (or part thereof) shall be terminated accordingly.
3. Recognition basis and measurement method of financial asset transfer
If the Company transfers almost all the risks and rewards in the title of financial assets, the financial assets shall be derecognized,
and the rights and obligations generated or retained in the transfer as assets or liabilities shall be separately recognized; If almost all
the risks and rewards in the title of financial assets are retained, the transferred financial assets shall continue to be recognized. If
the Company neither transfers nor retains almost all the risks and rewards in the title of financial assets, it shall be treated separately
according to the following circumstances: (1) If the control over the financial asset is not retained, the financial asset shall be
derecognized, and the rights and obligations arising from or retained in the transfer shall be separately recognized as assets or
liabilities; (2) If the control over the financial assets is retained, the relevant financial assets shall be recognized according to the
degree of continued involvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following two
amounts shall be included in the current profits and losses: (1) The carrying amount of the transferred financial assets on the date of
derecognition; (2) The sum of the consideration received from the transfer of financial assets and the amount of the corresponding
derecognized part of the cumulative amount of changes in fair value originally directly included in other comprehensive income (the
financial assets involved in the transfer are debt instrument investments measured at fair value with changes included in other
comprehensive income). If a part of a financial asset is transferred and the transferred part as a whole meets the conditions for
derecognition, the overall carrying amount of the financial asset before the transfer shall be apportioned between the derecognized
part and the continuously recognized part according to their respective relative fair values on the transfer date, and the difference
between the following two amounts shall be included in the current profits and losses: (1) The carrying amount of the derecognized
part; (2) The sum of the consideration of the derecognized part and the amount of the derecognized part corresponding to the
cumulative amount of changes in fair value originally directly included in other comprehensive income (the financial assets involved
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
in transfer are debt instrument investments measured at fair value with changes included in other comprehensive income).
4. Determination method of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques that are applicable in the current situation and supported by sufficient available
data and other information to determine the fair value of relevant financial assets and financial liabilities. The company divides the
input values used in the valuation techniques into the following levels and uses them in sequence:
(1) The input value of the first level is the unadjusted quotation of the same assets or liabilities that can be acquired on the
measurement date in the active market;
(2) The input value of the second level is the input value of relevant assets or liabilities directly or indirectly observable in
addition to the input value of the first level, including: the quotation of similar assets or liabilities in the active market; the quotation
of the same or similar assets or liabilities in the inactive market; other observable input values other than the quotation, such as the
observable interest rate and yield curve during normal quotation interval; the input value for market validation, etc.;
(3) The input value of the third level is the unobservable input value of relevant assets or liabilities, including the interest rates
that cannot be directly observed or verified by observable market data, stock volatility, future cash flow of retirement obligations
assumed in business combinations, financial forecasts made using their own data, etc.
5. Impairment of financial instruments
(1) Financial instrument impairment measurement and accounting treatment
On the basis of expected credit losses, the Company conducts impairment treatment based on expected credit losses and
recognizes loss reserves on the financial assets measured at amortized cost, debt instrument investments measured at fair value with
changes included in the other comprehensive income, contract assets, lease receivables, loan commitments classified other than
financial liabilities measured at fair value through profit or loss, and financial guarantee contracts that do not belong to financial
liabilities measured at fair value through profit or loss, or financial liabilities formed by the transfer of financial assets that do not
meet the conditions for derecognition or continue to be involved in the transferred financial assets.
Expected credit loss refers to the weighted average value of credit losses of financial instruments weighted by the risk of default.
Credit loss refers to the difference between all contract cash flows receivable under the contract and all cash flows expected to be
received by the Company discounted at the original effective interest rate, that is, the present value of all cash shortages. Among
them, the financial assets purchased or generated by the Company with credit impairment shall be discounted according to the actual
interest rate adjusted by the credit of the financial assets.
For the purchased or derived financial assets with credit impairment, the Company only recognizes the cumulative changes of
expected credit loss in the whole duration since initial recognition as loss reserves on the balance sheet date.
For the receivables and contract assets formed by the transactions regulated in the “Accounting Standard for Business
Enterprises No.14——Revenue" and excluding major financing components or the Company does not consider the financing
components in the contract not exceeding one year, the Company uses the simplified measurement method to measure the loss
reserve according to the amount equivalent to the expected credit loss in the whole duration.
For lease receivables, receivables and contract assets formed by the transactions regulated by the "Accounting Standard for
Business Enterprises No.14——Revenue" and containing major financing components, the Company uses the simplified
measurement method to measure the loss reserve according to the amount equivalent to the expected credit loss in the whole
duration.
For financial assets other than the above measurement methods, the Company assesses whether its credit risk has increased
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significantly since initial recognition on each balance sheet date. If the credit risk has increased significantly since initial recognition,
the Company shall measure the loss reserve according to the amount of expected credit loss during the whole duration; If the credit
risk has not increased significantly after initial recognition, the Company shall measure the loss reserve according to the amount of
expected credit loss of the financial instrument in the next 12 months.
The Company makes use of available reasonable and well-grounded information, including forward-looking information, to
determine whether the credit risk of financial instruments has increased significantly since initial recognition by comparing the risk
of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date.
On the balance sheet date, if the Company believes that the financial instrument has only low credit risk, it is assumed that the
credit risk of the financial instrument has not increased significantly since initial recognition.
The Company assesses the expected credit risk and measures the expected credit loss on the basis of individual financial
instrument or a combination of financial instruments. When based on the combination of financial instruments, the Company divides
the financial instruments into different combinations based on the common risk characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the increase or reversal amount of the loss
reserve formed thereby shall be included in the current profits and losses as impairment loss or gain. For the financial asset measured
at amortized cost, the loss reserve shall offset the carrying amount of this financial asset listed in the balance sheet; For the bond
investment measured at fair value with changes included in other comprehensive income, the Company recognizes its loss reserve in
other comprehensive income and does not deduct the carrying amount of this financial asset.
(2) Financial instruments for evaluating expected credit risk and measuring expected credit loss by mechanics
Project Basis to Determine the Portfolio Methods of measuring expected credit loss
Other receivables——Export tax rebate
With reference to the historical credit loss
receivable mechanics
experience, combined with the current
Other receivables——VAT refund situation and the prediction of future economic
Nature of the funds
receivable mechanics conditions, the expected credit loss is
Other receivables——Land bond calculated through the exposure at default and
receivable mechanics the expected credit loss rate in the next 12
Other receivables——Aging mechanics Aging months or the whole duration.
(3) Receivables and contract assets that measure expected credit loss by mechanics
1) Specific mechanics and methods of measuring expected credit loss
Basis to Determine the
Project Methods of measuring expected credit loss
Portfolio
Bank acceptance bills receivable With reference to the historical credit loss experience, combined
with the current situation and the prediction of future economic
Bill type conditions, the expected credit loss is calculated through the
Trade acceptance receivable
exposure at default and the expected credit loss rate throughout the
duration.
With reference to the historical credit loss experience, combined
with the current situation and the prediction of future economic
Accounts receivable——Aging mechanics Aging conditions, the comparison table between the aging of accounts
receivable and the expected credit loss rate throughout the
duration is prepared, and the expected credit loss is calculated.
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2) Accounts receivable——The comparison table of the aging of aging mechanics and the expected credit loss rate in the whole
duration
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (including, the same below) 5
1-2 years 20
2-3 years 80
3 years or above 100
3) Accounts receivable with insignificant single amount but single provision for bad debts
There is a significant difference between the present value of
future cash flow of accounts receivable and the present value of
Reason for making bad debt provision individually
future cash flow of accounts receivable mechanics with aging as
credit risk characteristics
The impairment test shall be conducted separately, and the
Method for bad debt provision provision for bad debts shall be based on the difference between
the present value of its future cash flow and its carrying amount
6. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and do not offset each other. However, if
the following conditions are met at the same time, the Company shall present the net amount after offsetting each other in the balance
sheet: (1) The company has the legitimate right to offset the recognized amount, and such legitimate right is currently enforceable; (2)
The company plans to settle on a net basis, or realize the financial assets and settle the financial liabilities at the same time.
For the transfer of financial assets that do not meet the conditions for derecognition, the Company will not offset the transferred
financial assets and related liabilities.
10. Inventories
1. Classification of inventories
Inventories include finished products or commodities held for sale in daily activities, products in the production process,
materials and supplies consumed in the production process or the rendering of services, etc.
2. Pricing method for issuing inventories
(1) The weighted averages method at the end of the month is adopted for the inventory issued other than developed products
(2) During the development of the project, the apportionment of land for development shall be calculated according to the area
covered by developed products and included in the development cost of the project.
(3) The average building area method is adopted for accounting to issue similar developed products.
(4) If the public supporting facilities are completed earlier than the relevant developed products, after the final settlement of the
completion of the public supporting facilities, it shall be included in the development costs of the relevant development projects
according to the budgeting absorption of costs of the relevant development projects; If the public supporting facilities are completed
later than the relevant developed products, relevant developed products shall first accrue the cost of public supporting facilities, and
the cost of relevant developed products shall be adjusted according to the difference between the actual amount and the accrued
amount after the completion and final settlement of the public supporting facilities.
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3. Basis for determining the net realizable value of inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and inventory write down
shall be accrued according to the difference between the cost of a single inventory and net realizable value. For the inventory directly
for sale, its net realizable value shall be determined by the amount of the estimated selling price of the inventory minus the estimated
marketing expenses and relevant taxes in the ordinary course of production and operation; For the inventory that needs to be
processed, its net realizable value shall be determined by the estimated selling price of finished products minus the estimated cost to
be incurred at the time of completion, estimated marketing expenses and relevant taxes in the ordinary course of production and
operation process; On the balance sheet date, if there is a contract price agreement for some part of the same inventory and no
contract price for other parts, their net realizable values shall be determined respectively, and compared with their corresponding
costs to determine the accrued or reversed amount of inventory write down respectively.
4. Inventory system
The inventory system of inventories is perpetual inventory system.
5. Amortization method of low-value consumables and packaging
(1) Low-value consumables
Amortize in accordance with the one-off writing-off process.
(2) Packaging
Amortize in accordance with the one-off writing-off process.
11. Long-term equity investment
1. Criterion of joint control and significant influence
It is recognized as joint control if there is common control over an arrangement according to the relevant agreement, and the
relevant activities of this arrangement can only be decided after the unanimous consent of the participants sharing control. It is
recognized as significant influence if have the right to participate in decision-making on the financial and operating policies of the
investee, but not being able to control or jointly control the formulation of these policies with other parties.
2. Determination of investment cost
(1) For the business combination under the same control, when the combining party takes paying cash, transferring non-cash
assets, bearing debts or issuing equity securities as the combination consideration, the share of the carrying amount of the owner's
equity of the combined party in the consolidated financial statements of the final controlling party on the combination date shall be
taken as its initial investment cost. The capital reserve shall be adjusted according to the difference between the initial investment
cost of long-term equity investment and the carrying amount of the combination consideration paid or the total par value of the issued
shares; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
The Company realizes the long-term equity investment arising from business combination under the same control step by step
through multiple transactions, and determine whether it is a "package deal". If it is a "package deal", each transaction shall be
accounted as a transaction that acquires control. If it is not a "package deal", on the combination date, the initial investment cost shall
be determined according to the share of the carrying amount of the net assets of the combined party in the consolidated financial
statements of the final controlling party. The capital reserve shall be adjusted as per the difference between the initial investment cost
of the long-term equity investment on the combination date and the sum of the carrying amount of the long-term equity investment
before the combination plus the carrying amount of the new payment of consideration for further shares on the combination date; If
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
(2) For the business combination not under the same control, the fair value of the combination consideration paid on the
acquisition date shall be taken as its initial investment cost.
The Company realizes the long-term equity investment, step by step, arising from business combination not under the same
control through multiple transactions, and distinguishes individual financial statements from consolidated financial statements for
relevant accounting treatment:
1) In the individual financial statements, the sum of the carrying amount of the equity investment originally held plus the new
investment cost is recognized as the initial investment cost calculated by cost method.
2) In the consolidated financial statements, determine whether it is a "package deal". If it is a "package deal", each transaction
shall be accounted as a transaction that acquires control. If it is not a "package deal", the equity held by the acquiree before the
acquisition date shall be re-measured according to the fair value of the equity on the acquisition date, the difference between the fair
value and its carrying amount shall be included in the current investment income; If the equity held by the acquiree before the
acquisition date involves other comprehensive income accounted by equity method, the relevant other comprehensive income shall
be transferred to the current income on the acquisition date. However, other comprehensive income arising from changes in the net
liabilities or net assets of the defined benefit plan re-measured by the investee is excluded.
(3) Except for those arising from business combination: If it is acquired by paying cash, the purchase price actually paid shall
be recognized as its initial investment cost; If it is acquired by issuing equity securities, fair value of the issued equity securities shall
be recognized as its initial investment cost; If it is acquired through debt restructuring, its initial investment cost shall be determined
in accordance with the "Accounting Standard for Business Enterprises No.12——Debt Restructuring"; If it is acquired by
exchanging the non-monetary assets, its initial investment cost shall be determined in accordance with the "Accounting Standard for
Enterprises No.7——Exchange of Non-monetary Assets".
3. Subsequent measurement and methods for profit and loss recognition
The long-term equity investment controlled by the investee shall be accounted by the cost method; The long-term equity
investment of associates and joint ventures shall be accounted for by the equity method.
4. Disposal of investment in subsidiaries through multiple transactions step by step until loss of right of control
(1) Individual financial statements
For the disposed equity, the difference between its carrying amount and the actually acquired price shall be included in the
current profits and losses. For the residual equity, if it still has a significant influence on the investee or implements joint control with
other parties, it shall be accounted by equity method; Where it can no longer exercise control, jointly control or exert significant
influence on the investee, it shall be accounted in accordance with the relevant provisions of the "Accounting Standard for Business
Enterprises No.22——Recognition and Measurement of Financial Instruments".
(2) Consolidated financial statements
1) Where the investment in subsidiaries through multiple transactions is processed step by step until loss of control, and it's not
a "package deal",
before the loss of right of control, the capital reserve (capital premium) shall be adjusted according to the difference between
the disposal price and the share of net assets of the subsidiary continuously calculated from the acquisition date or combination date
corresponding to the disposal of long-term equity investment. If the capital premium is insufficient to offset, the retained earnings
shall be offset.
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When the control over the subsidiary company is lost, the remaining equity shall be remeasured according to its fair value on
the date of loss of right control. The difference between the sum of the consideration acquired from the disposal of equity and the fair
value of the remaining equity minus the share of the net assets of the original subsidiary continuously calculated from the acquisition
date or the combination date according to the original shareholding ratio shall be included in the current investment income when the
right of control is lost, and meanwhile the goodwill shall be offset. Other comprehensive income related to the equity investment of
the original subsidiary shall be transferred to the current investment income when the right of control is lost.
2) Where the investment in subsidiaries through multiple transactions is processed step by step until loss of control, and it's not
a "package deal",
each transaction shall be accounted as the transaction in which the investment in subsidiaries is disposed and the right of
control is lost. However, before the loss of right of control, the difference between each disposal price and the share of net assets of
the subsidiary corresponding to the disposal of investment shall be recognized as other comprehensive income in the consolidated
financial statements, and shall be transferred to the current profits and losses when the control is lost.
12. Fixed assets
(1) Conditions for recognition of fixed assets
Fixed assets refer to the tangible assets held for the production of commodities, rendering of services, lease or operation and
management with the service life of more than one fiscal year. Fixed assets shall be recognized when economic benefits are likely to
flow in and costs can be measured reliably at the same time.
(2) Methods for depreciation
Useful lives of Annual depreciation
Category Depreciation method Residual Ratio
depreciation rate
Housing and building Straight-line method 7-35 5 13.57-2.71
Universal equipment Straight-line method 5-10 5 19.00-9.50
Special equipment Straight-line method 5-15 5 19.00-6.33
Means of transport Straight-line method 5-7 5 19.00-13.57
13. Construction in progress
1. The construction in progress shall be recognized when economic benefits are likely to flow in and costs can be measured
reliably at the same time. Construction in progress shall be measured at the actual cost incurred before the asset is ready for its
intended use.
2. When the construction in progress is ready for the intended use, it shall be transferred into fixed assets at actual cost of the
project. When it is ready for the intended use but the final accounting of completion has not been settled, it shall be transferred into
fixed assets at the estimated value. After the final accounting of completion is settled, the original estimated value shall be adjusted
according to the actual cost, but the originally accrued depreciation shall not be adjusted.
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14. Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Where the borrowing costs incurred by the Company can be directly attributed to the acquisition, construction or production of
assets eligible for capitalization shall be capitalized and included in the cost of relevant assets; Other borrowing costs, if recognized
as expenses when incurred, shall be included in the current profits and losses.
2. Period of capitalization of borrowing costs
(1) When the borrowing costs meet the following conditions at the same time, capitalization starts: 1) Asset expenditure has
incurred; 2) Borrowing costs have incurred; 3) The acquisition and construction or production activities necessary to make the assets
ready for intended use or sale have started.
(2) If the assets eligible for capitalization are abnormally interrupted in the process of acquisition, construction or production,
and the interruption period exceeds 3 consecutive months, the capitalization of borrowing costs shall be suspended; The borrowing
costs incurred during the interruption are recognized as current expenses until the acquisition and construction or production
activities of the assets restart.
(3) The capitalization of borrowing costs shall stop when the assets under acquisition, construction or production are ready for
the intended use or sale.
3. Capitalization rate and capitalization amount of borrowing cost
If a special loan is borrowed for the acquisition and construction or production of assets eligible for capitalization, the interest
amount shall be recognized by the interest expense actually incurred in the current period of the special loan (including the
amortization of discount or premium determined according to the effective interest rate method) minus the interest income acquired
by depositing the unused loan funds into the bank or the investment income acquired from temporary investment; If a general loan is
occupied for the acquisition and construction or production of assets eligible for capitalization, the amount of interest to be
capitalized on the general loan shall be calculated and determined according to the weighted average of the accumulative asset
expenditure exceeding the asset expenditure of the special loan multiplied by the capitalization rate of the occupied general loan.
15. The assets of right to use
1. Conditions for recognizing the assets of right to use
The assets of right to use refer to the right of the company as the lessee to use the leased assets during the lease term. The
Company recognizes the assets of right to use to the lease on the commencement of the lease term. The assets of right to use shall be
recognized when there is possible inflow of economic benefits and the costs can be reliably measured at the same time.
2. Initial measurement of the assets of right to use
The assets of right to use are initially measured at cost, which includes: (1) Initial measurement amount of lease liabilities; (2)
For the lease payment paid on or before the commencement of the lease term, if there are lease incentives, the relevant amount of
lease incentives enjoyed shall be deducted; (3) initial direct costs incurred by the lessee; (4) The estimated cost incurred by the lessee
for dismantling and removing the leased asset, restoring the site where the leased asset is located or restoring the leased asset to the
state agreed in the lease terms.
3. Subsequent measurement of the assets of right to use
(1) The Company adopts the cost model for subsequent measurement of the assets of right to use.
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(2) The Company depreciates the assets of right to use. If it can be reasonably recognized that the title of the leased asset is
acquired at the expiration of the lease term, the Company shall accrue depreciation within the remaining service life of the leased
asset. If it cannot be reasonably recognized that the title of the leased asset is acquired at the expiration of the lease term, the
Company shall accrue depreciation within the shorter of the lease term and the remaining service life of the leased asset. The specific
depreciation methods of various assets of right to use are as follows:：
Depreciation period Annual depreciation rate
Category Depreciation method Residual rate(%)
(years) (%)
Housing and building Straight-line method 7-35 5 13.57-2.71
Universal equipment Straight-line method 5-10 5 19.00-9.50
Special equipment Straight-line method 5-15 5 19.00-6.33
Means of transport Straight-line method 5-7 5 19.00-13.57
(3) When the company remeasures the lease liability according to the present value of the changed lease payment and adjusts
the carrying amount of the assets of right to use accordingly, if the carrying amount of the assets of right to use has been reduced to
zero, but the lease liability still needs to be further reduced, the remaining amount shall be included in the current profits and losses.
(4) On the balance sheet date, if there is any indication that the assets of right to use are impaired, the corresponding
impairment provision shall be made according to the difference between the carrying amount and the recoverable amount.
16. Intangible assets
(1) Valuation method, service life, impairment test
1. Intangible assets, including the land use right, patent right and non-patent technology, are initially measured at cost.
2. The intangible asset with limited service life shall be amortized systematically and reasonably according to the expected
realization mode of economic benefits related to this intangible asset within the service life. If the expected realization mode cannot
be recognized reliably, the straight-line method shall be used for amortization. The specific years are as follows:
Project Amortization period (years)
Land use rights 50、70
Softwares 10
Patent right 10
Non-patented technology 15
(2) Accounting policy for internal R&D expenditure
The expenditures in the research stage of internal research and development projects shall be included in the current profits and
losses when incurred. Expenditures in the internal research and development projects at development stage shall be recognized as
intangible assets if the following conditions are met : (1) Complete the intangible asset to make it available for use or sale technically;
(2) Have the intention to complete the intangible asset and use or sell it; (3) The ways in which the intangible assets generate
economic benefits, including the ability to prove the existence of a market for the products produced by using the intangible asset or
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the intangible asset itself, the usefulness of the intangible asset can be proved if it is internally used; (4) There are sufficient technical,
financial and other resources to support the development of the intangible asset and have the ability to use or sell the intangible asset;
(5) The expenditures for the intangible asset at development stage can be measured reliably.
17. Impairment of long-term assets
For the long-term assets such as long-term equity investment, fixed assets, construction in progress and intangible assets with
limited service life, if there is any indication of impairment on the balance sheet date, the recoverable amount shall be estimated. For
the goodwill arising from business combination and intangible assets with uncertain service life, impairment test shall be conducted
every year, regardless of whether there are signs of impairment or not. Goodwill is tested for impairment in combination with its
related asset group or combination of asset groups.
If the recoverable amount of the above long-term assets is lower than its carrying amount, the asset impairment provision shall
be recognized according to the difference and included in the current profits and losses.
18. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have been paid by the enterprise with the amortization period of more
than 1 year (excluding 1 year). Long-term deferred expenses shall be recorded according to the actual amount incurred and amortized
evenly by stages during the benefit period or within the specified period. If the long-term deferred expense item will not benefit the
future accounting period, all the amortized value of the item that has not been amortized shall be transferred to the current profits and
losses.
19. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between performance
obligations and customer payments. The Company shall present the net amount after offsetting the contract assets against contract
liabilities under the same contract. The Company lists the obligation to transfer commodities to customers for the consideration
received or receivable from customers as contract liabilities.
20. Employee compensation
(1) Accountant arrangement method of short-term remuneration
In the accounting period during which employees provide services to the company, the short-term compensation actually
incurred shall be recognized as liabilities and included in the current profits and losses or relevant asset costs.
(2) Accountant arrangement method of retirement benefit plan
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employees provide services to the company, the amount payable calculated according
to the defined contribution plan is recognized as liabilities and included in the current profits and losses or relevant asset costs.
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(2) The accounting treatment of defined benefit plans usually includes the following steps:
1) According to the expected accumulative welfare unit method, unbiased and consistent actuarial assumptions are applied to
estimate demographic variables and financial variables, measure the obligations arising from the defined benefit plan, and recognize
the period of relevant obligations. Meanwhile, the obligations arising from the defined benefit plan shall be discounted in order to
determine the present value and current service costs of the obligations thereof;
2) If there are assets in the defined benefit plan, the deficit or surplus arising from the present value of the defined benefit plan
obligations minus the fair value of the assets of the defined benefit plan shall be recognized as the net liabilities or net assets of one
defined benefit plan. If there is a surplus in the defined benefit plan, the net assets of the defined benefit plan shall be measured
according to the lower of the surplus of the defined benefit plan and the upper limit of assets;
3) At the end of term, the employee compensation cost arising from the defined benefit plan will be recognized as the service
cost, the net interest on the net liabilities or net assets of the defined benefit plan, and the changes arising from the remeasurement of
the net liabilities or net assets of the defined benefit plan, among which the service cost and the net interest on the net liabilities or net
assets of the defined benefit plan are included in the current profits and losses or relevant asset costs, the changes arising from
remeasurement of net liabilities or net assets of defined benefit plans are included in other comprehensive income, and are not
allowed to be reversed to profits or losses in the subsequent accounting periods, but these amounts recognized in other
comprehensive income can be transferred within the scope of equity.
(3) Accountant arrangement method of termination benefits
For the dismissal welfare provided to employees, the employee compensation liabilities arising from the dismissal welfare shall
be determined at the earliest of the following two, and included in the current profits and losses: (1) When the company cannot
unilaterally withdraw the dismissal welfare provided due to the termination of labor relations plan or layoff proposal; (2) When the
company determines the costs or expenses associated with the restructuring involving the payment of dismissal welfare.
(4) Accountant arrangement method of other long-term employee benefits
Other long-term welfare provided to employees, if meets the conditions of the defined contribution plan, shall be accounted for
in accordance with relevant provisions of the defined contribution plan; other long-term welfare shall be accounted for in accordance
with relevant provisions of the defined benefit plan. In order to simplify the relevant accounting treatment, the employee
compensation cost incurred is recognized as the service cost, the net interest of the net liabilities or net assets of other long-term
employee welfare, and the total net amount of changes arising from remeasuring the net liabilities or net assets of other long-term
employee welfare is included in the current profits and losses or relevant asset costs.
21. Lease liabilities
Lease liabilities shall be initially measured at the present value of the unpaid lease payments on the commencement date of the
lease term. Lease liabilities are usually listed in the illiquid liabilities and illiquid liabilities due within one year.
When calculating the present value of the lease payment, the lessee shall adopt the interest rate implicit in lease as the discount
rate; If the interest rate implicit in lease cannot be recognized, the lessee's interest rate on incremental Loan shall be applied as the
discount rate. The interest rate implicit in lease refers to the interest rate that makes the sum of the present value of the lessor's lease
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receipts and the present value of the unguaranteed residual value equal to the sum of the fair value of the leased asset and the lessor's
initial direct costs. The lessee's interest rate on incremental Loan refers to the interest rate that the lessee must pay to borrow money
with similar mortgage conditions during similar periods in order to acquire assets close to the value of the assets of right to use in the
similar economic environment.
In the subsequent measurement, the lessee shall calculate the interest expense of the lease liability during each period of the
lease term at a fixed periodic interest rate (i.e. the discount rate) and include it in the current profits and losses.
22. Revenue
Accounting policies for revenue recognition and measurement
1. Revenue recognition principle
On the commencement of the contract, the Company evaluates the contract to identify each individual performance obligation
contained in the contract, and determines whether each individual performance obligation is performed within a certain period of
time or at a certain point of time.
When one of the following conditions is met, it belongs to the performance obligation within a certain period of time, otherwise
it belongs to the performance obligation at a certain point of time: (1) The customer acquires and consumes the economic benefits
arising from the Company's performance while the company performs the contract; (2) The customer can control the commodities in
progress during the Company's performance; (3) The commodities produced by the Company during the performance possess
irreplaceable usage, and the company has the right to collect payment for the performance part accumulated so far during the whole
contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the revenue according
to the performance progress within that period of time. If the performance progress cannot be reasonably recognized and the costs
incurred are expected to be compensated, the revenue shall be recognized according to the amount of costs incurred until the
performance progress can be reasonably recognized. For the performance obligations performed at a certain point of time, revenue
shall be recognized when the customer acquires the right of control over relevant commodities or services. While determining
whether the customer has acquired the right of control over the commodities, the Company shall take the followings into
consideration: (1) The Company has the current collection right for the commodity, that is, the customer has the current payment
obligation for the commodity; (2) The Company has transferred the legal title of the commodity to the customer, that is, the customer
already has the legal title of the commodity; (3) The Company has transferred the physical commodity to the customer, that is, the
customer has possessed the physical commodity; (4) The Company has transferred the major risks and rewards of the commodity
title to the customer, that is, the customer has acquired the major risks and rewards of the commodity title; (5) The customer has
accepted the commodity; (6) other signs indicating that the customer has acquired the right of control over the commodity.
2. Revenue measurement principle
(1) The Company measures the revenue according to the transaction price apportioned to each individual performance
obligation. The transaction price refers to the amount of consideration that the company is expected to be entitled to collect due to the
transfer of commodities or services to customers, excluding the payments collected on behalf of third parties and the payments
expected to be returned to customers.
(2) Where there is variable consideration in the contract, the Company shall determine the best estimate of the variable
consideration according to the expected value or the amount most likely to occur, but the transaction price including the variable
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consideration shall not exceed the amount by which the accumulative recognized revenue is much more unlikely to be significantly
reversed when relevant uncertainties are eliminated.
(3) If there are major financing components in the contract, the Company shall determine the transaction price according to the
amount due assumed to be paid in cash when the customer acquires the right of control over the commodities or services. The
difference between this transaction price and the contract consideration shall be amortized by the effective interest rate method
during the contract period. On the commencement of the contract, if the Company expects that the interval between the customer's
acquisition of right of control over the commodities or services and the customer's payment of the price will not exceed one year, the
major financing components in the contract will not be taken into consideration.
(4) If the contract contains two or more performance obligations, the Company shall apportion the transaction price to each
individual performance obligation on the contract commencement date according to the relative proportion of the individual selling
price of the commodities promised by each individual performance obligation.
3. Specific methods of revenue recognition
(1) Revenue from product sales
The Company mainly sells nutriment, flavor and fragrance, and polymer new materials, etc. The sales of products are
performance obligations at a certain point of time. The recognition of domestic product revenue shall meet the following conditions:
The Company has delivered the products to customers according to the contract, collected the payment or acquired the right of
collection, and the relevant economic benefits are very likely to flow in. The recognition of the revenue of products for export shall
meet the following conditions: The Company has declared the products at the customs according to the contract, acquired the bill of
lading, collected the payment or acquired the right of collection, and the relevant economic benefits are very likely to flow in.
(2) Revenue from real estate sales
Real estate sales are performance obligations performed at a certain point of time. Revenue recognition shall meet the
following conditions: The Company has delivered the products to customers according to the contract, customers have signed the
delivery note, collected the payment or acquired the right of collection, and the relevant economic benefits are very likely to flow in.
23. Government grants
1. Government grants shall be recognized when the following conditions are met at the same time: (1) The Company can meet
the conditions attached to government grants; (2) The Company can receive government grants. If the government grant is a
monetary asset, it shall be measured at the amount received or receivable. If the government grant is a non-monetary asset, it shall be
measured at the fair value; If the fair value cannot be obtained reliably, it shall be measured at the nominal amount.
2. Determination basis and accounting treatment method of government grants related to assets
According to government documents, government grants applied for the acquisition and construction or the formation of
long-term assets in other ways shall be classified as the government grants related to assets. If there is no clear stipulation in the
government documents, the judgment shall be based on the basic conditions necessary for acquiring the grant, and the government
grants related to assets shall be based on the formation of long-term assets by acquisition and construction or other means.
Government grants related to assets shall offset the carrying amount of relevant assets or be recognized as deferred income. If the
government grants related to assets are recognized as deferred income, they shall be included in profits and losses by stages in a
reasonable and systematic manner during their service life. Government grants measured in nominal amount shall be directly
included in the current profits and losses. If relevant assets are sold, transferred, scrapped or damaged before the end of their service
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life, the non-allocated balance of relevant deferred income shall be transferred to the current profits and losses of the disposal of
assets.
3. Determination basis and accounting treatment method of government grants related to income
Government grants other than those related to assets shall be classified as government grants related to income. For the
government grants that contain both asset-related and income-related parts, if it is difficult to make a distinction between
asset-related and income-related government grants, they shall be classified as income-related government subsidies as a whole.
Where the government grants related to income are applied to compensate relevant costs or losses in subsequent periods, it shall be
recognized as deferred income and included in the current profits and losses or offset relevant costs during the period when relevant
costs or losses are recognized; If it is used to compensate the relevant costs or losses incurred, it shall be directly included in the
current profits and losses or offset the relevant costs.
4. Government grants related to the Company's daily business activities shall be included in other income or offset related costs
according to the essence of economic business. Government grants unrelated to the Company's daily activities shall be included in
the non-operating income.
5. Accounting treatment method of policy-oriented concessional loan discount interest
(1) Where the finance allocates the discount interest funds to the lending bank, and the lending bank provides loans to the
Company at the policy preferential interest rate, the actually received loan amount shall be taken as the entry value of the loan, and
the relevant borrowing costs shall be calculated according to the loan principal and the policy preferential interest rate.
(2) If the finance directly allocates the discount interest funds to the Company, the corresponding discount interest shall offset
the relevant borrowing costs.
24. Deferred income tax assets / deferred income tax liabilities
1. According to the difference between the carrying amount of assets and liabilities and their tax base (if the tax base of the item
is not recognized as the asset and liability can be determined according to the tax law, the difference between the tax base and its
carrying amount), the deferred income tax assets or deferred income tax liabilities are calculated and recognized according to the
applicable tax rate during the expected recovery of the assets or settlement of the liabilities.
2. The recognition of deferred income tax assets is limited to the taxable income that is very likely to be acquired to offset the
deductible temporary differences. On the balance sheet date, if there is conclusive evidence indicating that sufficient taxable income
is likely to be obtained in the future to offset the deductible temporary differences, the unrecognized deferred income tax assets in the
previous accounting periods shall be recognized.
3. On the balance sheet date, the carrying amount of deferred income tax assets shall be reviewed. If no sufficient taxable
income is likely to be obtained to offset the benefits of deferred income tax assets in the future, the carrying amount of deferred
income tax assets shall be written down. The amount written down shall be reversed when it is likely to obtain sufficient taxable
income.
4. The current income tax and deferred income tax of the Company shall be included in the current profits and losses as income
tax expenses or income, but excluding the income tax generated under the following circumstances: (1) Business combination; (2)
Transactions or items directly recognized in the owner's equity.
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25. Leases
1. The Company as a lessee
On the commencement date of lease, the Company recognizes the lease of no more than 12 months and excluding the call option
as a short-term lease; When a single leased asset is brand-new, the lease of lower value is recognized as a low-value asset lease. If the
Company sublets or is expected to sublet the leased assets, the original lease shall not be recognized as the low-value asset lease.
For all the short-term leases and low-value asset leases, the Company shall record the lease payment amount into the relevant asset
costs or current profits and losses according to the straight-line method / workload method in each period of the lease term.
In addition to the above short-term leases and low-value asset leases with simplified treatment, the Company recognizes the
right-of-use assets and lease liabilities for the lease on the commencement date of lease.
(1) Right-of-use assets
The right-of-use assets are initially measured at cost, which includes: 1) The initial measurement amount of lease liabilities; 2)
For the lease payment paid on or before the commencement of the lease, if there is a lease incentive, the relevant amount of the lease
incentive enjoyed shall be deducted; 3) Initial direct costs incurred by the lessee; 4) The estimated costs incurred by the lessee for
dismantling and removing the leased asset, restoring the site where the leased asset is located or restoring the leased asset to the state
agreed in the lease terms.
The Company depreciates the right-of-use assets according to the straight-line method / workload method. If it can be reasonably
recognized that the title of the leased asset is acquired at the expiration of the lease term, the Company shall accrue depreciation
within the remaining service life of the leased asset. If it cannot be reasonably recognized that the title of the leased asset is acquired
at the expiration of the lease term, the Company shall accrue depreciation within the shorter of the lease term and the remaining
service life of the leased asset.
(2) Lease liabilities
On commencement date of the lease, the Company recognizes the present value of the unpaid lease payments as lease liabilities.
The interest rate implicit in lease is applied as the discount rate when calculating the present value of lease payments. If the interest
rate implicit in lease cannot be determined, the Company's incremental loan interest rate is applied as the discount rate. The
difference between the lease payment amount and its present value shall be regarded as the unrecognized financing expense, and the
interest expense shall be recognized according to the discount rate of the present value of the lease payment amount during each
period of the lease term and included in the current profits and losses. The variable lease payment which is not included in the
measurement of lease liabilities shall be included in the current profits and losses when actually incurred.
After the commencement of the lease, when there are changes in the actual fixed payment, the estimated payable amount of
guarantee residual value, the index or ratio applied to determine the amount of lease payments, the evaluation results or actual
exercise of the call option, renewal option or termination option, the Company remeasures the lease liability according to the present
value of the changed lease payment, and accordingly adjusts the carrying amount of the right-of-use asset. If the carrying amount of
the right-of-use asset has been reduced to zero, but the lease liability still need to be further reduced, the remaining amount shall be
included in the current profits and losses.
2. The Company as a lessor
On the commencement date of the lease, the Company classifies the leases that have substantially transferred almost all the risks
and rewards related to the title of the leased assets as finance leases, and all other leases are operating leases.
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(1) Operating leases
The Company recognizes the lease receipts as rental income according to the straight-line method / workload method during
each period of the lease term, capitalizes the initial direct expenses incurred, apportions them on the same basis as the recognition of
rental income, and includes them into the current profits and losses by stages. The Company's variable lease payments related to
operating leases that are not included in the lease receipts shall be included in the current profits and losses when they actually occur.
(2) Finance leases
On the commencement date of lease, the Company recognizes the financial lease receivables according to the net lease
investment (the sum of the unguaranteed residual value and the present value of the unreceived lease receipts discounted according to
the interest rate implicit in the lease on the commencement date of the lease), and terminates the recognition of the financial lease
assets. During each period of the lease term, the Company calculates and recognizes interest income according to the interest rate
implicit in lease.
The Company's variable lease payments that are not included in the measurement of the net lease investment shall be included
in the current profits and losses when they actually occur.
3. Sale and leaseback
(1) The Company as a lessee
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a sale in
accordance with the provisions of the Accounting Standard for Business Enterprises No. 14——Revenue.
If the asset transfer in the sale and leaseback transaction is a sale, the Company shall measure the right-of-use asset arising from
the sale and leaseback according to the part related to the right of use acquired from the leaseback in the original carrying amount of
the asset, and only recognize relevant gains or losses on the rights transferred to the lessor.
If the asset transfer in the sale and leaseback transaction is not a sale, the Company shall continue to recognize the transferred
asset, and recognize a financial liability equal to the transfer income, and account for this financial liability in accordance with the
Accounting Standard for Business Enterprises No. 22——Recognition and Measurement of Financial Instruments.
(2) The Company as a lessor
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a sale in
accordance with the provisions of the Accounting Standard for Business Enterprises No. 14——Revenue.
If the asset transfer in the sale and leaseback transaction is a sale, the Company shall account for the asset acquisition in
accordance with other applicable accounting standards for business enterprises, and account for the asset lease in accordance with the
Accounting Standard for Business Enterprises No. 21——Lease.
If the asset transfer in the sale and leaseback transaction is not a sale, the Company shall not recognize the transferred asset, but
recognize a financial liability equal to the transfer income, and account for this financial liability in accordance with the Accounting
Standard for Business Enterprises No. 22——Recognition and Measurement of Financial Instruments.
26. Safety production expenses
The safety production expenses withdrawn by the Company in accordance with the measures for the Administration of the
Extraction and Use of Enterprise Safety Production Expenses (CQ [2012] No.16) jointly issued by the Ministry of Finance and the
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State Administration of Work Safety shall be included in the costs of relevant products or current profits and losses, and also recorded
in the "special reserve" subject. When using the drawn safety production expense, if it is the expense expenditure, it shall directly
offset against the special reserve. For the fixed assets developed, the incurred expenses collected through the "construction in
progress" shall be recognized as the fixed assets when the safety project is completed and ready for the expected use; Meanwhile, the
special reserve shall be offset according to the cost of fixed asset development, and the accumulative depreciation of the same
amount is recognized, this fixed asset shall not be depreciated in the subsequent periods.
27. Segmental report
The Company determines the Operation Subsection according to the internal organization structure, management requirements,
internal reporting system, etc. The Operation Subsection of the Company refers to the constituent parts that can fulfill all the
following conditions:
1. This component can generate revenue and expenses in daily activities;
2. The management can regularly evaluate the operating performance of this component to decide resource allocation to it and
evaluate its performance;
3. Relevant accounting information such as financial status, operating performance and cash flow of the component can be
acquired through analysis.
28. Change in Significant Accounting Policies and Accounting Estimates
(1) Changes in significant accounting policies
√ Applicable □ Not applicable
Content of and Reasons for the Change in Accounting
Approval Process Remarks
Policies
As of January 1, 2021, the Company has implemented
Accounting Standards for Enterprises No.21 – Leases
(hereinafter referred to as "new lease criteria") revised by
the Ministry of Finance. According to the regulations on
For details, see the Announcement No.
transition from the old criteria to the new, no information
2021-027 published on
is adjusted in the comparable periods. Retroactive Not applicable.
http://www.cninfo.com.cn on August 20,
adjustment on retained earnings at the beginning of the
2021.
reporting period and amount of other related item in the
financial statements shall be made due to the cumulative
impact of the new lease criteria implemented on the first
execution date.
The new lease criteria have the following main effects on the financial statements of the Company on January 1, 2021.
Affected Assets and December 31, 2020 January 1, 2021
Liabilities Consolidated Subsidiaries Parent Company Consolidated Subsidiaries Parent Company
Right-of-use assets 3,604,870.23 3,303,921.56
Lease liabilities 3,604,870.23 3,303,921.56
115
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
The Company has implemented Accounting Standards for Enterprises No.14 – Revenue (hereinafter referred to as "new income
standards") revised by the Ministry of Finance since January 1, 2020. Through which the fees incurred from performance of
obligations hereunder are included in operating cost. The new income standards has the following main effects on the financial
statements of the Company for the first half of 2021:
The amount of income statement affected from January, to June, 2021
Affected Income Statement Items
Consolidated Subsidiaries Parent Company
Operating cost 173,980,054.97 4,952,821.40
Sales expenses -173,980,054.97 -4,952,821.40
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) The first implementation of new lease criteria from 2021 to adjust the relevant items of the financial
statements implemented at the beginning of the year for the first time
Applicable.
Whether the accounts of the balance sheet at the beginning of the year shall be adjusted
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item December 31, 2020 January 1, 2021 Adjusted amount
Current Assets:
Cash and Bank
4,927,657,236.24 4,927,657,236.24
Balances
Deposit Reservation
for Balance
Loans to Banks and
Other Financial Institutions
Trading Financial
852,227,964.70 852,227,964.70
Assets
Derivative Financial
Assets
Notes receivable 332,064,366.59 332,064,366.59
Accounts receivable 1,930,930,930.01 1,930,930,930.01
Receivables
295,393,346.17 295,393,346.17
Financing
Prepayments 116,063,557.59 116,063,557.59
116
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item December 31, 2020 January 1, 2021 Adjusted amount
Premium Receivable
Reinsurance Accounts
Receivable
Reinsurance Contract
Reserves Receivable
Other Receivables 178,610,951.64 178,610,951.64
Including: interest
receivable
Dividends
Receivable
Buying Back the Sale
of Financial Assets
Inventories 3,117,042,558.78 3,117,042,558.78
Contract Assets
Holding for-sale
assets
Non-current Assets
Due within 1 Year
Other Current Assets 1,777,569,473.96 1,777,569,473.96
Subtotal of Current Assets 13,527,560,385.68 13,527,560,385.68
Non-current Assets:
Granting of loans and
advances
Investment in
Creditor's Rights
Investment in Other
Creditor's Rights
Long-term
Receivables
Long-term Equity
343,378,891.18 343,378,891.18
Investment
Investment in Other
22,998,147.55 22,998,147.55
Equity Instruments
Other Non-current
Financial Assets
Investment Property
117
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item December 31, 2020 January 1, 2021 Adjusted amount
Fixed Assets 13,914,151,215.54 13,914,151,215.54
Construction in progress 1,325,545,420.56 1,325,545,420.56
Productive Biological
Assets
Oil and gas assets
Right-of-use Assets 3,604,870.23 3,604,870.23
Intangible Assets 1,407,067,129.87 1,407,067,129.87
Development
Expenditure
Goodwill
Long-term Deferred
13,369,412.48 13,369,412.48
Expenses
Deferred Income Tax
65,143,706.00 65,143,706.00
Assets
Other Non-current
277,793,490.68 277,793,490.68
Assets
Subtotal of Non-current
17,369,447,413.86 17,373,052,284.09 3,604,870.23
Assets
Total Assets 30,897,007,799.54 30,900,612,669.77 3,604,870.23
Current Liabilities:
Short-term Borrowings 2,363,525,192.53 2,363,525,192.53
Loan from the Central
Bank
Loan from Banks and
Other Financial Institutions
Transactional
financial liabilities
Derivative Financial
Liabilities
Notes Payable 497,644,517.23 497,644,517.23
Accounts Payable 1,463,728,316.04 1,463,728,316.04
Received
Prepayments
Contract liabilities 56,302,537.11 56,302,537.11
Financial Assets Sold
for Repurchase
118
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item December 31, 2020 January 1, 2021 Adjusted amount
Deposit Taking and
Interbank Deposit
Receiving from
Vicariously Traded
Securities
Receiving from
Vicariously Sold Securities
Payroll payable 322,646,061.45 322,646,061.45
Tax Payable 268,864,472.38 268,864,472.38
Other Payables 129,839,228.89 129,839,228.89
Including: interest
payable
Dividends
Payable
Service Charge and
Commission Payable
Reinsurance Accounts
Payable
Holding for-sale
liabilities
Non-current
Liabilities Due within 1 1,275,888,293.32 1,275,888,293.32
Year
Other Current
4,956,463.49 4,956,463.49
Liabilities
Subtotal of Current
6,383,395,082.44 6,383,395,082.44
Liabilities
Non-current Liabilities:
Insurance Contract
Reserves
Long-term
4,136,875,354.33 4,136,875,354.33
Borrowings
Bonds Payable
Including:
Preferred Stocks
Perpetual
Bonds
119
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item December 31, 2020 January 1, 2021 Adjusted amount
Lease Liabilities 3,604,870.23 3,604,870.23
Long-term Payables
Long-term payroll
payable
Expected Liabilities
Deferred Income 873,066,181.34 873,066,181.34
Deferred Income Tax
99,839,731.45 99,839,731.45
Liabilities
Other Non-current
Liabilities
Subtotal of Non-current
5,109,781,267.12 5,113,386,137.35 3,604,870.23
Liabilities
Total Liabilities 11,493,176,349.56 11,496,781,219.79 3,604,870.23
Shareholders' Equity:
Share Capital 2,148,662,300.00 2,148,662,300.00
Other Equity
Instruments
Including:
Preferred Stocks
Perpetual
Bonds
Capital Reserves 4,560,522,556.84 4,560,522,556.84
Less: Treasury Share
Other Comprehensive
27,803,829.31 27,803,829.31
Incomes
Special Reserves 9,550,346.85 9,550,346.85
Surplus Reserves 1,074,331,150.00 1,074,331,150.00
General Risk
Reserves
Undistributed Profits 11,515,384,739.95 11,515,384,739.95
Total Shareholders' Equity
Attributable to the Parent 19,336,254,922.95 19,336,254,922.95
Company
Minority
67,576,527.03 67,576,527.03
Shareholders' Equity
Total Shareholders' Equity 19,403,831,449.98 19,403,831,449.98
120
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item December 31, 2020 January 1, 2021 Adjusted amount
Total Liabilities and
30,897,007,799.54 30,900,612,669.77 3,604,870.23
Shareholders' Equity
Description of the adjustment
According to Accounting Standards for Enterprises No.21 – Lease (CaiKuai [2018] No.35) issued by the Ministry of Finance in 2018,
the Company has implemented the new lease criteria and made adjustment to the relevant items in the financial statements as of
January 1, 2021.
Balance Sheet of the Parent Company
Unit: RMB
Item December 31, 2020 January 1, 2021 Adjusted amount
Current Assets:
Cash and Bank
2,790,740,377.97 2,790,740,377.97
Balances
Trading Financial
851,949,945.63 851,949,945.63
Assets
Derivative Financial
Assets
Notes receivable 332,064,366.59 332,064,366.59
Accounts receivable 704,086,691.03 704,086,691.03
Receivables
Financing
Prepayments 1,631,550.49 1,631,550.49
Other Receivables 4,247,680,763.92 4,247,680,763.92
Including: interest
receivable
Dividends
Receivable
Inventories 566,205,506.19 566,205,506.19
Contract Assets
Holding for-sale
assets
Non-current Assets
Due within 1 Year
Other Current Assets 552,859,738.36 552,859,738.36
Subtotal of Current Assets 10,047,218,940.18 10,047,218,940.18
Non-current Assets:
121
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item December 31, 2020 January 1, 2021 Adjusted amount
Investment in
Creditor's Rights
Investment in Other
Creditor's Rights
Long-term
Receivables
Long-term Equity
6,372,637,172.92 6,372,637,172.92
Investment
Investment in Other
22,998,147.55 22,998,147.55
Equity Instruments
Other Non-current
Financial Assets
Investment Property
Fixed Assets 737,784,631.31 737,784,631.31
Construction in progress
Productive Biological
Assets
Oil and gas assets
Right-of-use Assets 3,303,921.56 3,303,921.56
Intangible Assets 105,425,506.93 105,425,506.93
Development
Expenditure
Goodwill
Long-term Deferred
5,919,401.23 5,919,401.23
Expenses
Deferred Income Tax
42,345,228.44 42,345,228.44
Assets
Other Non-current
7,202,988.32 7,202,988.32
Assets
Subtotal of Non-current
7,294,313,076.70 7,297,616,998.26 3,303,921.56
Assets
Total Assets 17,341,532,016.88 17,344,835,938.44 3,303,921.56
Current Liabilities:
Short-term Borrowings 1,243,628,965.48 1,243,628,965.48
Transactional
financial liabilities
122
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item December 31, 2020 January 1, 2021 Adjusted amount
Derivative Financial
Liabilities
Notes Payable 155,953,161.50 155,953,161.50
Accounts Payable 100,374,347.92 100,374,347.92
Received
Prepayments
Contract liabilities 8,494,783.78 8,494,783.78
Payroll payable 82,688,797.50 82,688,797.50
Tax Payable 33,578,246.55 33,578,246.55
Other Payables 15,543,517.50 15,543,517.50
Including: interest
payable
Dividends
Payable
Holding for-sale
liabilities
Non-current
Liabilities Due within 1 635,930,890.44 635,930,890.44
Year
Other Current
1,104,321.89 1,104,321.89
Liabilities
Subtotal of Current
2,277,297,032.56 2,277,297,032.56
Liabilities
Non-current Liabilities:
Long-term Borrowings 2,209,521,076.40 2,209,521,076.40
Bonds Payable
Including:
Preferred Stocks
Perpetual
Bonds
Lease Liabilities 3,303,921.56 3,303,921.56
Long-term Payables
Long-term payroll
payable
Expected Liabilities
Deferred Income 18,884,041.56 18,884,041.56
123
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item December 31, 2020 January 1, 2021 Adjusted amount
Deferred Income Tax
13,011,703.03 13,011,703.03
Liabilities
Other Non-current
Liabilities
Subtotal of Non-current
2,241,416,820.99 2,244,720,742.55 3,303,921.56
Liabilities
Total Liabilities 4,518,713,853.55 4,522,017,775.11 3,303,921.56
Shareholders' Equity:
Share Capital 2,148,662,300.00 2,148,662,300.00
Other Equity
Instruments
Including:
Preferred Stocks
Perpetual
Bonds
Capital Reserves 4,300,852,875.45 4,300,852,875.45
Less: Treasury Share
Other Comprehensive
506,954.43 506,954.43
Incomes
Special Reserves
Surplus Reserves 1,074,331,150.00 1,074,331,150.00
Undistributed Profits 5,298,464,883.45 5,298,464,883.45
Total Shareholders' Equity 12,822,818,163.33 12,822,818,163.33
Total Liabilities and
17,341,532,016.88 17,344,835,938.44 3,303,921.56
Shareholders' Equity
Description of the adjustment
According to Accounting Standards for Enterprises No.21 – Lease (CaiKuai [2018] No.35) issued by the Ministry of Finance in 2018,
the Company has implemented the new lease criteria and made adjustment to the relevant items in the financial statements as of
January 1, 2021.
(4) Explanation of data comparison for early stage of retroactive adjustment due to first implementation of
the new lease criteria from 2021
□ Applicable √ Not applicable
124
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Ⅵ. Taxes
1. Major Tax Categories and Tax Rates
Tax Type Taxation Basis Tax Rate
13%, 10%, 9%, 6%, 5% and 19%; the
According to the provisions of the tax policy of “tax exemption, tax credit and
law, the sales tax shall be calculated on tax refund” is implemented for the
the basis of the income by selling goods export goods, with the tax refund rate of
and taxable services. After deducting the 0%–13%; the policy of "refund after
VAT
input tax that is allowed to be deducted collection" is implemented for the export
from the sales tax in the current period, goods of the subsidiary company,
the difference shall be the value-added Zhejiang NHU Import and Export Co.,
tax (VAT). Ltd., with the tax refund rate of
0%–13%.
Urban Maintenance and Construction
Actually paid turnover tax 5%, 7%
Tax
Enterprise Income Tax Taxable income 15%, 25%
Four-level extra progressive rate is
adopted. Calculated at a rate of 30% for
added value not exceeding 50% of the
deducted item amount; 40% for added
Compensable transfer of the added value value exceeding 50% of the deducted
arising from the right to use state-owned item amount and not exceeding 100% of
Land VAT
land, and property rights of ground the deducted item amount; 50% for
premises and other attached structures added value exceeding 100% of the
deducted item amount and not exceeding
200% of the deducted item amount; 60%
for added value exceeding 200% of the
deducted item amount
RMB 3.6/sq.m.; RMB 4/sq.m.; RMB
Calculated based on the corresponding
6/sq.m.; RMB 7.2/sq.m.; RMB 8/sq.m.;
Land Usage Tax tax of the actual land area occupied, and
RMB 9/sq.m.; RMB 10/sq.m.; RMB
levied per year and paid in installments
13/sq.m.
For the advalorem tax method,
calculated by 1.2% of the residual
following the subtraction of 30% of the
House Property Tax 1.2%, 12%
original value of the property; for the
leasing income method, calculated by
12% of the leasing income
Education Surcharges Actually paid turnover tax 3%
Local Education Surcharges Actually paid turnover tax 2%
125
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Tax Type Taxation Basis Tax Rate
Solidarity Surcharge [Note] The amount of income tax payable 5.50%
Trade Tax [Note] Taxable income 13.30%
[Note] Applicable to NHU EUROPE GmbH, NHU PERFORMANCE MATERIALS GMBH, and Bardoterminal GmbH
If there are multiple taxpayers with different enterprise income tax rates, the disclosure shall be explained
Name of Taxpayer Income Tax Rate
The Company 15%
Shangyu Bio-Chem 15%
Zhejiang Special Materials 15%
Shandong Pharmaceutical 15%
Shandong Amino-acids 15%
Shandong Vitamins 15%
NHU EUROPE GmbH 15%
NHU PERFORMANCE MATERIALS GMBH 15%
Bardoterminal GmbH 15%
Other taxpayers other than those mentioned above 25%
2. Preferential Tax Rate
According to the High and New Technology Enterprise Certificate (GR202033003531) issued by Zhejiang Provincial
Department of Science and Technology, Zhejiang Provincial Department of Finance, and Zhejiang Provincial Tax Service, State
Taxation Administration, the Company is certified as a high and new technology enterprise and enjoys the preferential income tax
policies for hi-tech enterprises from 2020 to 2022. The enterprise income tax is calculated at a rate of 15% in 2021.
According to the High and New Technology Enterprise Certificate (GR201933005736) issued by Zhejiang Provincial
Department of Science and Technology, Zhejiang Provincial Department of Finance, and Zhejiang Provincial Tax Service, State
Taxation Administration, the subsidiary company, SHANGYU NHU BIO-CHEM CO., LTD., is certified as a high and new
technology enterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2019 to 2021. The enterprise
income tax is calculated at a rate of 15% in 2021.
The High and New Technology Enterprise Certificate (2018 to 2020) for Zhejiang NHU Construction Material Co., Ltd., the
subsidiary company, has expired. The enterprise income tax is prepaid at a rate of 15% in 2021 according to Announcement of the
State Administration of Taxation on Issues Concerning the Implementation of the Preferential Income Tax Policies regarding
High-Tech Enterprises (No. 24 [2017]).
According to the High and New Technology Enterprise Certificate (GR202037001084) issued by Department of Science &
Technology of Shandong Province, Shandong Provincial Department of Finance, and Shandong Provincial Tax Service, State
Taxation Administration, the subsidiary company, Shandong NHU Pharmaceutical Co., Ltd., is certified as a high and new
technology enterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2020 to 2022. The enterprise
income tax is calculated at a rate of 15% in 2021.
126
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
According to the High and New Technology Enterprise Certificate (GR202037000197) issued by Department of Science and
Technology of Shandong Province, Shandong Provincial Department of Finance, and Shandong Provincial Tax Service, State
Taxation Administration, the subsidiary company, Shandong NHU Vitamins Co., Ltd., is certified as a high and new technology
enterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2020 to 2022. The enterprise income tax is
calculated at a rate of 15% in 2021.
The High and New Technology Enterprise Certificate (2018 to 2020) for Shandong NHU Amino-acids Co., Ltd., subsidiary
company, has expired. The enterprise income tax is prepaid at a rate of 15% in 2021 according to Announcement of the State
Administration of Taxation on Issues Concerning the Implementation of the Preferential Income Tax Policies regarding High-Tech
Enterprises (No. 24 [2017]).
Ⅶ. Notes to the Items in the Consolidated Financial Statement
Note: The opening balance of the notes to the items in the consolidated financial statement indicates the data of January 1, 2021
adjusted by the balance at the end of last year according to the new lease standards.
1. Cash and Bank Balances
Unit: RMB
Item Closing Balance Opening Balance
Cash on Hand 17,148.82 10,735.55
Bank Balance 6,182,146,348.75 4,669,296,040.54
Other Cash and Bank Balances 230,449,397.69 258,350,460.15
Total 6,412,612,895.26 4,927,657,236.24
Including: Total Amount Deposited in
13,496,972.20 21,518,199.53
Overseas Banks
Other notes
Monetary Funds - Other Monetary Funds
Unit: RMB
Project At the end of the reporting period At the beginning of the reporting period
Bank Acceptance Bill Deposit 205,331,116.11 233,849,274.66
L/C Deposit 22,854,163.27 23,350,000.00
Deposit for Project Labor Wages 1,653,668.82 741,108.87
Construction Bond 404,439.49 404,076.62
ETC Deposit 6,000.00 6,000.00
Guarantee Deposit for Water Charges 200,010.00 -
Subtotal 230,449,397.69 258,350,460.15
127
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
2. Trading Financial Assets
Unit: RMB
Item Closing Balance Opening Balance
Financial Assets at Fair Value through
1,326,426,200.12 852,227,964.70
Profit or Loss in This Period
Including: Principal-Protected Floating
1,320,000,000.00 850,000,000.00
-Income Financial Products
Including: Derivative Financial Assets 6,426,200.12 2,227,964.70
Total 1,326,426,200.12 852,227,964.70
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
Item Closing Balance Opening Balance
Bank Acceptance Notes 460,973,358.32 332,064,366.59
Total 460,973,358.32 332,064,366.59
Unit: RMB
Balance at the End of the Period Opening Balance
Bad Debt Bad Debt
Book Balance Book balance
Provision Provision
Acc
Category Accr
Book rue Book
ued
Percentag Am Value Percentag Amo d Value
Amount Prop Amount
e ount e unt Pro
ortio
port
n
ion
Notes
Receivable
with the
Bad Debt
460,973,3 332,064, 332,064,
Provision 460,973,358.32 100.00% 100.00%
58.32 366.59 366.59
Accrued
Based on
Combinatio
ns
Bank 460,973,3 332,064, 332,064,
460,973,358.32 100.00% 100.00%
Acceptance 58.32 366.59 366.59
128
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Bill
460,973,3 332,064, 332,064,
Total 460,973,358.32 100.00% 100.00%
58.32 366.59 366.59
2) Notes Receivable That the Company Has Pledged at the End of the Period
Unit: RMB
Item Pledged Amount by the End of the Period
Bank Acceptance Notes 431,546,440.19
Total 431,546,440.19
(3) Notes Receivable that the Company has Endorsed or Discounted at the End of the Period and that Have
Not Yet Expired on the Balance Sheet Date
Unit: RMB
Derecognised Amount at the End of the Not Derecognised Amount at the End of
Item
Period Period
Bank Acceptance Notes 67,677,561.91
Total 67,677,561.91
Other notes
The commercial bank is the acceptor of bank acceptance bill. The possibility that no payment is made when the bank
acceptance bill expires is low, so the Company derecognizes the endorsed or discounted bank acceptance bill. If no payment is made
when the bank acceptance bill expires, the Company also bears joint responsibilities for the holder.
4. Accounts Receivable
(1) Categorical Disclosure of Accounts Receivable
Unit: RMB
Balance at the End of the Period Opening Balance
Bad Debt Bad Debt
Book Balance Book balance
Provision Provision
Category Accrue Book Accru Book
Percentag Amoun d Value Amoun Percenta ed value
Amount Amount
e t Proport t ge Propo
ion rtion
Accounts
Receivables 2,640,177,7 137,301, 2,502,87 2,037,46 106,534, 1,930,930,
100.00% 5.20% 100.00% 5.23%
with the 19.11 631.99 6,087.12 4,941.46 011.45 930.01
Bad Debt
129
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Provision
Accrued
Based on
Combinatio
ns
2,640,177,7 137,301, 2,502,87 2,037,46 106,534, 1,930,930,
Total 100.00% 5.20% 100.00% 5.23%
19.11 631.99 6,087.12 4,941.46 011.45 930.01
Bad debt provision based on combinations: aging
Unit: RMB
Balance at the End of the Period
Name
Book balance Bad Debt Provision Accrued proportion
Within 1 Year 2,616,053,456.50 130,802,672.83 5.00%
1-2 Years 21,909,191.81 4,381,838.36 20.00%
2-3 years 489,750.00 391,800.00 80.00%
3 years or above 1,725,320.80 1,725,320.80 100.00%
5 years or above 1,725,320.80 1,725,320.80 100.00%
Total 2,640,177,719.11 137,301,631.99
Disclosure by age
Unit: RMB
Aging Balance at the End of the Period
Within 1 Year (Including 1 Year) 2,616,053,456.50
1 to 2 Years 21,909,191.81
2 to 3 Years 489,750.00
3 years or above 1,725,320.80
5 Years or above 1,725,320.80
Total 2,640,177,719.11
(2) Provision for Bad Debts Accrued, Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period Balance at the
Opening
Category Recovered or End of the
Balance Accrued Written Off Others
Reversed Period
Bad Debt
Provision 106,534,011.45 30,767,620.54 137,301,631.99
Based on
130
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Combinations
Total 106,534,011.45 30,767,620.54 137,301,631.99
(3) Accounts Receivable of the Top Five Balances at the End of the Period Collected by Indebted Parties
Unit: RMB
Balance of Accounts As a Percentage of Total Other
Bad Debt Provision at the End
Name of Unit Receivable at the End of the Receivables at the End of the
of the Period
Period Period
Customer 1 513,125,231.63 19.43% 25,656,261.58
Customer 2 252,935,288.07 9.58% 15,933,143.18
Customer 3 156,771,329.88 5.94% 7,838,566.49
Customer 4 88,892,708.00 3.37% 4,444,635.40
Customer 5 68,767,516.46 2.60% 3,438,375.82
Total 1,080,492,074.04 40.92%
5. Receivables Financing
Unit: RMB
Item Closing Balance Opening Balance
Notes receivable 33,076,624.55 295,393,346.17
Total 33,076,624.55 295,393,346.17
The increase and decrease of accounts receivable financing in the current period and the changes in the fair value
□ Applicable √ Not applicable
Please refer to the disclosing methods of other receivables for the information disclosure of depreciation provisions, if the
depreciation provisions of accounts receivable financing are made according to the general model of expected credit losses:
□ Applicable √ Not applicable
Other notes:
(1) Notes receivable pledged by the Company at the end of the period
Project Pledged Amount by the End of the Period
Bank Acceptance Bill 8,890,529.21
Subtotal 8,890,529.21
(2) Notes receivable that the Company has endorsed or discounted at the end of the period and that have not yet expired on the
balance sheet date
Project Derecognised Amount at the End of the Period
Bank Acceptance Bill 268,605,122.02
Subtotal 268,605,122.02
131
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
The commercial bank is the acceptor of bank acceptance bill. The possibility that no payment is made when the bank
acceptance bill expires is low, so the Company derecognizes the endorsed or discounted bank acceptance bill. If no payment is made
when the bank acceptance bill expires, the Company also bears joint responsibilities for the holder.
6. Prepayments
(1) Prepayments Listed by Age
Unit: RMB
Closing Balance Opening Balance
Aging
Amount Percentage Amount Percentage
Within 1 Year 161,544,227.31 99.43% 115,835,410.14 99.81%
1 to 2 Years 708,638.85 0.43% 108,449.06 0.09%
2 to 3 Years 111,959.82 0.07% 34,278.04 0.03%
3 years or above 109,843.00 0.07% 85,420.35 0.07%
Total 162,474,668.98 -- 116,063,557.59 --
(2) Advance Payment of the Top Five Closing Balances by Prepayment Parties
Unit: RMB
Name of Unit Book Balance As a Percentage of Prepayments (%)
Supplier 1 27,612,147.10 16.99
Supplier 2 21,952,237.36 13.51
Supplier 3 11,136,036.93 6.85
Supplier 4 7,535,416.79 4.64
Supplier 5 6,461,700.00 3.98
Subtotal 74,697,538.18 45.97
7. Other Receivables
Unit: RMB
Item Closing Balance Opening Balance
Other Receivables 210,828,040.94 178,610,951.64
Total 210,828,040.94 178,610,951.64
1) Other Receivables Categorized by the Nature of the Funds
Unit: RMB
Nature of the funds Closing balance Opening Balance
132
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Guarantee Deposit 126,081,892.13 126,960,566.33
Export Refunds 79,414,033.07 51,751,067.61
Refundable VAT 7,897,919.91 2,139,904.45
Employee Imprest 6,002,917.00 4,764,737.00
Temporary Payments Receivable 2,194,826.13 2,470,070.51
Others 857,757.88 584,839.49
Total 222,449,346.12 188,671,185.39
2) Bad Debt Provision
Unit: RMB
Phase One Phase Two Phase Three
Expected Credit Losses
Expected Credit Expected credit losses for
Bad Debt Provision for the Entire Extension Total
Losses in the Next the entire extension (with
(without Credit
12 Months credit impairment)
Impairment)
Balance on January 1,
573,660.51 1,522,658.59 7,963,914.65 10,060,233.75
2021
Balance in the Current
Period on January 1, —— —— —— ——
2021
--Transfer to Phase
-148,259.93 148,259.93
Two
--Transfer to Phase
-1,817,790.41 1,817,790.41
Three
Provisions in the
259,406.72 739,911.59 561,753.12 1,561,071.43
Current Period
Balance on June 30,
684,807.30 593,039.70 10,343,458.18 11,621,305.18
2021
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging Closing Balance
Within 1 Year (Including 1 Year) 109,422,899.02
1 to 2 Years 2,965,198.51
2 to 3 Years 9,088,952.04
3 years or above 100,972,296.55
133
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
3 to 4 Years 1,031,302.95
4 to 5 Years 99,271,245.29
5 Years or above 669,748.31
Total 222,449,346.12
3) Provision for Bad debts Accrued, Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bad Debt
Provision
10,060,233.75 1,561,071.43 11,621,305.18
Based on
Combinations
Total 10,060,233.75 1,561,071.43 11,621,305.18
4) Other Receivables of the Top Five Closing Balances Collected by Indebted Parties
Unit: RMB
As a Percentage of
Bad debt provision
Nature of the Balance at the End Total Other
Name of Unit Aging at the end of the
Funds of the Period Receivables at the
period
End of the Period
Weifang City
Natural Resources
and Planning Guarantee Deposit 97,900,000.00 4 years or above 44.01%
Bureau Binhai
Branch
State Taxation
Administration
Export Refunds 79,414,033.07 Within 1 year 35.70%
(Export Refunds
Receivable)
Federal Central
Refundable VAT 7,897,919.91 Within 1 Year 3.55%
Tax Office
Suihua Labor 850,000.00 1-2 years 0.38% 170,000.00
Security
Guarantee Deposit 8,328,490.53 2-3 years 3.74% 6,662,792.42
Supervision
Bureau 930,000.00 3-4 Years 0.42% 930,000.00
134
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Xinchang County
Guarantee Deposit 5,000,000.00 1-2 years 2.25%
Finance Bureau
Total -- 200,320,443.51 -- 90.05% 7,762,792.42
8. Inventories
Does the Company follow the disclosure requirements in the real estate industry?
No
(1) Categories of Inventories
Unit: RMB
Closing Balance Opening Balance
Provision for Provision for
Impairment of Impairment of
Item Inventories or Inventories or
Book Balance Book Value Book balance Book Value
Provision for Provision for
Impairment of Impairment of
Performance Cost Performance Cost
Raw
427,308,799.26 802,452.27 426,506,346.99 558,843,825.21 986,354.24 557,857,470.97
Materials
Work-in-prog
888,466,686.58 888,466,686.58 820,838,241.10 820,838,241.10
ress
Merchandise 1,528,329,198.
6,992,312.48 1,521,336,885.78 1,201,225,837.45 10,578,367.06 1,190,647,470.39
Inventories 26
Goods in
38,247,731.11 38,247,731.11 50,257,257.15 50,257,257.15
Transit
Development
394,470,197.57 394,470,197.57 294,084,933.10 294,084,933.10
Cost
Developed
124,217,237.05 124,217,237.05 129,785,192.22 129,785,192.22
Product
Commission
8,917,276.62 8,917,276.62 4,033,866.34 4,033,866.34
ed Materials
Package 12,251,594.46 12,251,594.46 15,062,156.67 15,062,156.67
Low-value
Consumption 108,275,685.95 108,275,685.95 54,475,970.84 54,475,970.84
Goods
3,530,484,406.
Total 7,794,764.75 3,522,689,642.11 3,128,607,280.08 11,564,721.30 3,117,042,558.78
86
135
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
(1) Inventories—Development Cost
Item Name Estimated Total At the beginning of the reporting At the end of the reporting period
Investment period
Boao NHU Resort Hotel 550,000,000 33,575,305.88 33,575,305.88
Weifang NHU Town II 398,531,400 260,509,627.22 360,894,891.69
Subtotal 294,084,933.10 394,470,197.57
(2) Inventories—Developed Product
Completion At the beginning of Increased in the Decreased in the Current At the end of the
Item Name
Time the reporting period Current Period Period reporting period
Boao NHU Resort
2014.12 129,785,192.22 4,049,073.54 9,617,028.71 124,217,237.05
Center
Subtotal 129,785,192.22 4,049,073.54 9,617,028.71 124,217,237.05
(3) Provision for Impairment of Inventories and Provision for Impairment of Performance Cost
Unit: RMB
Increased in the Current Period Decreased in the Current Period
Opening Closing
Item Reversals or
Balance Accrued Others Others Balance
Write-offs
Raw materials 986,354.24 183,901.97 802,452.27
Merchandise
10,578,367.06 6,714,482.90 10,300,537.48 6,992,312.48
Inventories
Total 11,564,721.30 6,714,482.90 10,484,439.45 7,794,764.75
Basis for determining the net realizable value, and reason for the reversal or write-off of inventories depreciation provision in
the current period
Reason for the Reversal of Reason for the Write-off of Inventories
Basis for Determining the Net
Project Inventories Depreciation Depreciation Provision in the Current
Realizable Value:
Provision in the Current Period Period
The net realizable value is
determined by the amount after
Increase in the net realizable The inventories for inventories
deducting the estimated cost of
value of inventories for depreciation provision at the beginning
Raw Materials completion, estimated selling
inventories depreciation of this period has been sold or used in
expenses and relevant taxes from
provision in previous periods the current period.
the estimated selling price of
finished goods.
136
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
The net realizable value is
determined by the amount after Increase in the net realizable The inventories for inventories
Merchandise deducting the estimated selling value of inventories for depreciation provision at the beginning
expenses and relevant taxes from inventories depreciation of this period has been sold in the
Inventories
the estimated selling price of provision in previous periods current period.
finished goods.
9. Other Current Assets
Unit: RMB
Item Closing Balance Opening Balance
Bank Financial Products and Structured
200,000,000.00 950,000,000.00
Deposits
Prepaid VAT or Input Tax to Be Credited 527,575,591.92 817,273,751.05
Prepaid Urban Maintenance and
16,532.22
Construction Tax
Prepaid Enterprise Income Tax 5,256,726.36 5,193,417.21
Deferred Insurance Premium 5,295,591.65 5,056,905.47
Deferred Rent Fee 12,335.78
Prepaid Education Surcharges 9,919.36
Prepaid Local Education Surcharges 6,612.87
Total 738,127,909.93 1,777,569,473.96
10. Long-term Equity Investment
Unit: RMB
Decrease/Increase in the Current Period
Investment
Closing
Opening Profit and Adjustment Cash Closing
The Provision balance of
Balance Loss on Other Other Dividends Balance
Invested Investments Investment for provision for
(Book Recognized Comprehen Changes or Profit Others (Book
Entity Increased Decreased Impairment decline in
Value) under the sive in Equity Declared to Value)
Accrued value
Equity Income Distribute
Method
Affiliate
Zhejiang
Chunhui
199,358, 16,864,292.7 216,222,
Environ
330.80 9 623.59
mental
Protectio
137
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
n Energy
Co., Ltd.
Zhejiang
Sanpo
Polymer
Co., Ltd.
Shandon
g Bin'an
6,391,06 6,258,01
Technolo -133,045.81
4.12 8.31
gy Co.,
Ltd.
DSM
NHU
Engineeri
ng
Materials
(Zhejiang
) Co.,
Ltd.
Zhejiang
Saiya
98,309,7 100,425,
Chemical 2,115,473.15
10.69 183.84
Materials
Co., Ltd.
CysBio 39,319,7 35,805,1
-3,124,190.21 -390,492.14
ApS 85.57 03.22
343,378, 15,722,529.9 358,710,
Total -390,492.14
891.18 2 928.96
11. Investment in Other Equity Instruments
Unit: RMB
Item Closing Balance Opening Balance
Second Pharma Co.,Ltd. 7,790,147.55 7,790,147.55
Shanghai NewMargin Yongjin Eqiuty
15,208,000.00 15,208,000.00
Enterprise
Total 22,998,147.55 22,998,147.55
12. Fixed assets
Unit: RMB
138
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item Closing Balance Opening Balance
Fixed Assets 13,752,889,539.13 13,914,151,215.54
Total 13,752,889,539.13 13,914,151,215.54
(1) Fixed Assets
Unit: RMB
Housing and Universal Means of
Item Special equipment Total
building equipment transport
I. Original Book Value
1. Opening Balance 5,471,048,302.28 148,005,902.83 12,294,355,532.66 25,738,968.49 17,939,148,706.26
2. Increased in the
270,285,525.10 13,966,177.98 175,413,843.67 678,422.47 460,343,969.22
Current Period
(1) Purchase 183,696,182.85 7,605,086.56 120,215,443.53 630,413.62 312,147,126.56
(2) Transferred
From Construction in 86,589,342.25 6,361,091.42 55,198,400.14 48,008.85 148,196,842.66
Progress
3. Decreased in the
16,402,192.06 2,467,122.74 84,383,612.00 1,178,037.74 104,430,964.54
Current Period
(1) Disposal or
16,402,192.06 2,467,122.74 84,383,612.00 1,178,037.74 104,430,964.54
Scrapping
4. Closing Balance 5,724,931,635.32 159,504,958.07 12,385,385,764.33 25,239,353.22 18,295,061,710.94
II. Accumulated
Depreciation
1. Opening Balance 522,190,479.09 84,230,573.73 3,401,522,313.16 16,291,440.70 4,024,234,806.68
2. Increased in the
79,152,254.88 10,553,025.09 487,259,954.40 1,114,250.87 578,079,485.24
Current Period
(1) Accrual 79,152,254.88 10,553,025.09 487,259,954.40 1,114,250.87 578,079,485.24
3. Decreased in the
15,770.27 2,976,815.08 57,052,287.43 859,931.37 60,904,804.15
Current Period
(1) Disposal or
15,770.27 2,976,815.08 57,052,287.43 859,931.37 60,904,804.15
Scrapping
4. Closing Balance 601,326,963.70 91,806,783.74 3,831,729,980.13 16,545,760.20 4,541,409,487.77
III. Provision for
Impairment
1. Opening Balance 16,110.64 1,141.64 729,136.75 16,295.01 762,684.04
2. Increased in the
Current Period
(1) Accrual
139
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
3. Decreased in the
Current Period
(1) Disposal or
Scrapping
4. Closing Balance 16,110.64 1,141.64 729,136.75 16,295.01 762,684.04
IV. Book Value
1. Closing Book
5,123,588,560.98 67,697,032.69 8,552,926,647.45 8,677,298.01 13,752,889,539.13
Value
2. Opening Book
4,948,841,712.55 63,774,187.46 8,892,104,082.75 9,431,232.78 13,914,151,215.54
Value
(2) Temporarily Idle Fixed Assets
Unit: RMB
Original Book Accumulated Provision for
Item Book value Remarks
Value Depreciation decline in value
Special equipment 47,615,262.92 23,585,973.70 24,029,289.22
(3) Fixed Assets Leased by Operating Lease
Unit: RMB
Item Closing Book Value
Housing and building 28,692,265.78
(4) Fixed Assets with Certificates of Title Not Granted
Unit: RMB
Reasons for Certificates of Title Not
Item Book Value
Granted
Housing and building 1,454,022,332.76 Related procedures not completed
13. Construction in progress
Unit: RMB
Item Closing Balance Opening Balance
Construction in progress 2,295,793,123.43 1,325,545,420.56
Total 2,295,793,123.43 1,325,545,420.56
140
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
(1) Details of Construction in Progress
Unit: RMB
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
decline in value decline in value
Shandong
Industrial Park 15,516,662.57 15,516,662.57 4,682,266.37 4,682,266.37
Project I
Heilongjiang
43,592,931.39 43,592,931.39 24,493,344.31 24,493,344.31
Xinhao Project II
Hongweisu
207,846,117.83 207,846,117.83 125,379,657.49 125,379,657.49
Project
Auxiliary
Materials
Supporting
Project for
62,373,927.07 62,373,927.07
Heilongjiang
NHU
Biofermentation
Industrial Park
Methionine
Project with
Annual 24,427,295.25 24,427,295.25 16,754,982.19 16,754,982.19
Production of
250,000 Tons
Shandong
Industrial Park 216,364,549.21 216,364,549.21 215,871,416.04 215,871,416.04
Project 615
Shandong
Industrial Park 75,335,108.66 75,335,108.66 71,756,558.71 71,756,558.71
Project 617A
Shandong
Industrial Park 72,520,845.39 72,520,845.39 47,927,444.49 47,927,444.49
Project 603
Shandong
Industrial Park 57,682,975.41 57,682,975.41 16,423,904.95 16,423,904.95
Project MH
Shangyu
Industrial Park 114,250,390.87 114,250,390.87 43,358,686.84 43,358,686.84
Project PPS
141
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Shandong
Industrial Park 999,898,646.95 999,898,646.95 448,565,055.49 448,565,055.49
Project TMB
Biochemical
Engineering
Workshop
63,214,354.21 63,214,354.21 58,503,795.45 58,503,795.45
Renovation and
Promotion
Project
Daming
Healthcare 87,487,231.15 87,487,231.15
Project
Other Projects 317,656,014.54 317,656,014.54 189,454,381.16 189,454,381.16
Total 2,295,793,123.43 2,295,793,123.43 1,325,545,420.56 1,325,545,420.56
(2) Changes in Significant Construction in Progress
Unit: RMB
Includin
Project Capitaliz
g:
Other Accumul Accumul ation
Transferr Capitaliz
Increase Amounts ative ated Rate of
ed Fixed ed
Item Opening d in the Decrease Closing Investme Project Capitaliz the Capital
Budget Assets in Interest
Name Balance Current d in Balance nt as a Progress ed Interest Source
Current Amount
Period Current Percenta Interest in the
Period in the
Period ge of the Amount Current
Current
Budget Period
Period
Shandong
Industrial 3,116,00 4,682,266 19,195,8 1,704,93 6,656,47 15,516,6 16,260,8
84.20% 99.00% Others
Park 0,000.00 .37 04.88 8.01 0.67 62.57 33.33
Project I
Heilongjia
107,462, 24,493,34 21,663,8 2,564,28 43,592,9
ng Xinhao 0.00 42.95% 52.00% Others
500.00 4.31 67.33 0.25 31.39
Project II
Hongweis 478,229, 125,379,6 82,466,4 207,846,
0.00 0.00 43.46% 72.00% Others
u Project 800.00 57.49 60.34 117.83
Auxiliary
Materials 87,396,1 62,373,92 13,054,4 75,428,3
0.00 0.00 86.31% 100.00% Others
Supportin 00.00 7.07 60.73 87.80
g Project
142
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
for
Heilongjia
ng NHU
Biofermen
tation
Industrial
Park
Methionin
e Project
Fund
with
5,369,84 16,754,98 7,672,31 24,427,2 raised
Annual 0.00 0.00 32.14% 40.00%
2,200.00 2.19 3.06 95.25 with
Production
shares
of 250,000
Tons
Shandong
Industrial
209,355, 215,871,4 493,133. 216,364,
Park 0.00 0.00 103.35% 97.50% Others
000.00 16.04 17 549.21
Project
615
Shandong
Industrial
85,000,0 71,756,55 3,578,54 75,335,1
Park 0.00 0.00 88.63% 95.00% Others
00.00 8.71 9.95 08.66
Project
617A
Shandong
Industrial
97,280,3 47,927,44 24,593,4 72,520,8
Park 0.00 0.00 74.55% 88.00% Others
00.00 4.49 00.90 45.39
Project
603
Shandong
Industrial
283,501, 16,423,90 41,259,0 57,682,9
Park 0.00 0.00 20.35% 37.00% Others
300.00 4.95 70.46 75.41
Project
MH
Shangyu
Industrial
709,000, 43,358,68 70,891,7 114,250,
Park 0.00 0.00 16.12% 31.00% Others
000.00 6.84 04.03 390.87
Project
PPS
Shandong
1,231,60 448,565,0 567,038, 15,705,1 999,898, 1,531,87 1,531,87
Industrial 0.00 82.46% 92.00% 4.28% Others
5,900.00 55.49 772.65 81.19 646.95 5.00 5.00
Park
143
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Project
TMB
Biochemic
al
Engineerin
g
69,110,0 58,503,79 4,710,55 63,214,3
Workshop 0.00 0.00 91.47% 99.00% Others
00.00 5.45 8.76 54.21
Renovatio
n and
Promotion
Project
Daming
457,720, 87,487,2 87,487,2
Healthcare 19.11% 30.00% Others
700.00 31.15 31.15
Project
12,301,5
1,136,091 944,105, 95,402,7 6,656,47 1,978,13 17,792,7 1,531,87
Total 03,800.0 -- -- --
,039.40 327.41 87.25 0.67 7,108.89 08.33 5.00
0
14. Right-of-use Assets
Unit: RMB
Item Buildings for Leasing Total
I. Original Book Value:
1. Opening Balance 3,604,870.23 3,604,870.23
2. Increased in the Current Period 1,858,538.29 1,858,538.29
3. Decreased in the Current Period 0.00 0.00
4. Closing Balance 5,463,408.52 5,463,408.52
II. Accumulated Depreciation
1. Opening Balance
2. Increased in the Current Period 448,385.93 448,385.93
(1) Accrual
3. Decreased in the Current Period
(1) Disposal
4. Closing Balance 448,385.93 448,385.93
III. Book Value
1. Closing Book Value 5,015,022.59 5,015,022.59
2. Opening Book Value 3,604,870.23 3,604,870.23
144
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Note: For the difference between the beginning of the reporting period and the end of the previous year (December 31, 2020), see
Chapter V.28 of this Section.
15. Intangible Assets
(1) Details of Intangible Assets
Unit: RMB
Non-patented
Item Land use rights Patent right Softwares Total
technology
I. Original Book
Value
1. Opening
1,535,867,143.93 15,634,893.87 1,880,000.00 24,620,367.22 1,578,002,405.02
Balance
2. Increased
in the Current 5,148,804.91 2,152,689.01 1,043,762.83 8,345,256.75
Period
(1)
5,148,804.91 2,152,689.01 1,043,762.83 8,345,256.75
Purchase
(2) Internal
Research and
Development
(3)
Acquisition
3. Decreased in
the Current Period
(1)
Disposal
4. Closing
1,541,015,948.84 17,787,582.88 1,880,000.00 25,664,130.05 1,586,347,661.77
Balance
II. Accumulated
Amortization
1. Opening
156,112,743.86 1,297,796.00 41,777.78 13,482,957.51 170,935,275.15
Balance
2. Increased
in the Current 15,117,645.60 622,354.44 62,666.67 928,746.11 16,731,412.82
Period
(1) Accrual 15,117,645.60 622,354.44 62,666.67 928,746.11 16,731,412.82
3. Decreased
in the Current
145
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Non-patented
Item Land use rights Patent right Softwares Total
technology
Period
(1)
Disposal
4. Closing
171,230,389.46 1,920,150.44 104,444.45 14,411,703.62 187,666,687.97
Balance
III. Book Value
1. Closing
1,369,785,559.38 15,867,432.44 1,775,555.55 11,252,426.43 1,398,680,973.80
Book Value
2. Opening
1,379,754,400.07 14,337,097.87 1,838,222.22 11,137,409.71 1,407,067,129.87
Book Value
The intangible assets from internal research and development of the Company at the end of this period account for 0.00% of the
intangible assets balance.
(2) Land Use Rights with Certificates of Title Not Granted
Unit: RMB
Reasons for Certificates of Title Not
Item Book Value
Granted
Land use rights 5,574,257.00 Related procedures not completed
16. Goodwill
(1) Original Book Value of Goodwill
Unit: RMB
Increased in the
Decreased in the Current Period
The Invested Entity or current period
Opening
Matters Which Formed Generated from Foreign Currency Closing Balance
Balance
Goodwill Business Disposal Translation
Combination Difference
Bardoterminal GmbH 2,307,297.60 97,409.65 2,209,887.95
Total 2,307,297.60 97,409.65 2,209,887.95
(2) Provision of Goodwill Impairment
Unit: RMB
The Invested Entity or Opening Increased in the Decreased in the Current Period Closing Balance
146
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Matters Which Formed Balance current period
Goodwill
Accrued Disposal Decreased
Bardoterminal GmbH 2,307,297.60 97,409.65 2,209,887.95
Total 2,307,297.60 97,409.65 2,209,887.95
17. Long-term Deferred Expenses
Unit: RMB
Increased in the Amortized in the Other Amounts
Item Opening Balance Closing Balance
Current Period Current Period Decreased
Renovation Cost 13,230,866.20 1,464,368.63 1,889,541.83 12,805,693.00
Gardening
89,881.48 44,940.78 44,940.70
Expense
Site Leveling 48,664.80 8,110.80 40,554.00
Total 13,369,412.48 1,464,368.63 1,942,593.41 12,891,187.70
18. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Not Written Off
Unit: RMB
Closing Balance Opening Balance
Item Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Provision for
58,537,569.64 10,555,874.72 41,096,831.73 6,778,514.76
Impairment of Assets
Unrealized Profit from
204,559,627.50 31,125,345.34 180,352,009.29 28,516,508.65
Internal Transactions
Deferred Income 129,000,956.57 19,690,804.36 132,441,298.90 19,866,194.83
Fixed Assets
Depreciation 52,299,404.53 7,844,910.68 66,549,918.38 9,982,487.76
Difference
Total 444,397,558.24 69,216,935.10 420,440,058.30 65,143,706.00
(2) Deferred Income Tax Liabilities Not Written Off
Unit: RMB
147
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Closing Balance Opening Balance
Item Taxable Temporary Deferred Income Tax Taxable temporary Deferred Income Tax
Difference Liabilities difference Liabilities
Fixed Assets Tax Basis
433,962,301.69 77,606,551.14 391,333,594.21 71,800,274.33
Difference
Profit before Tax of
NHU (HONGKONG)
311,258,629.20 46,688,794.38 184,979,768.52 27,746,965.28
TRADING
COMPANY LIMITED
Changes at Fair Value
of Trading Financial
Instruments and 1,547,205.80 232,080.87 1,949,945.63 292,491.84
Derivative Financial
Instruments
Total 746,768,136.69 124,527,426.39 578,263,308.36 99,839,731.45
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset
Unit: RMB
Amount of Deferred Balance of Deferred Amount of Deferred Balance of Deferred
Income Tax Assets Income Tax Assets or Income Tax Assets Income Tax Assets or
Item Offset against Liabilities after Offset Offset against Liabilities after Offset
Liabilities at the End of at the End of the Liabilities at the Start at the Start of the
the Period Period of the Period Period
Deferred Income Tax
69,216,935.10 65,143,706.00
Assets
Deferred Income Tax
124,527,426.39 99,839,731.45
Liabilities
(4) Details of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Closing Balance Opening Balance
Deductible Temporary Difference 382,370,680.20 253,988,934.04
Deductible Losses 420,127,591.09 428,660,231.59
Total 802,498,271.29 682,649,165.63
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets Expired in the Following Year
Unit: RMB
148
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Year Closing Balance Opening balance Remarks
2026 3,312,384.19 3,312,384.19
2027 11,527,268.52 11,527,269.04
2028 38,888,442.26 38,888,442.26
2029 104,120,797.51 104,129,305.33
2030 262,278,698.61 270,802,830.77
Total 420,127,591.09 428,660,231.59 --
19. Other Non-current Assets
Unit: RMB
Closing Balance Opening Balance
Provision
Provision
Item for
Book Balance Book value Book balance for decline Book value
decline in
in value
value
Pollutant Emission
482,349.22 482,349.22 14,447,447.94 14,447,447.94
Trading Fee
Coal Indicator Fee 44,496,000.00 44,496,000.00 68,296,000.00 68,296,000.00
Prepaid Long-term
316,715,175.10 316,715,175.10 195,050,042.74 195,050,042.74
Assets
Total 361,693,524.32 361,693,524.32 277,793,490.68 277,793,490.68
20. Short-term Borrowings
(1) Categories of Short-term Borrowings
Unit: RMB
Item Closing Balance Opening Balance
Guaranteed Borrowings 10,013,902.78
Fiduciary Borrowings 2,298,007,852.59 2,225,474,073.09
Fiduciary and Pledged Borrowings 100,000,000.00 100,000,000.00
Pledged and Guaranteed Borrowings 28,037,216.66
Total 2,398,007,852.59 2,363,525,192.53
21. Notes Payable
Unit: RMB
149
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Types Closing Balance Opening Balance
Bank acceptance bill 668,896,544.92 497,644,517.23
Total 668,896,544.92 497,644,517.23
22. Accounts Payable
(1) Details of Accounts Payable
Unit: RMB
Item Closing Balance Opening Balance
Labor and Materials Expenses 695,383,950.46 567,395,890.15
Payment for Engineering and Equipment 749,678,083.45 896,332,425.89
Total 1,445,062,033.91 1,463,728,316.04
23. Contract Liabilities
Unit: RMB
Item Closing Balance Opening Balance
Payment for Goods 44,962,287.54 56,302,537.11
Total 44,962,287.54 56,302,537.11
24. Payroll Payable
(1) Details of Payroll Payable
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
I. Short-term
322,646,061.45 763,598,251.09 854,943,937.71 231,300,374.83
Remuneration
II. Dismissal Benefits -
Defined Contribution 38,297,177.21 38,297,177.21
Scheme
Total 322,646,061.45 801,895,428.30 893,241,114.92 231,300,374.83
(2) List of short-term remuneration
Unit: RMB
Item Opening Balance Increased in the current Decreased in the Closing Balance
150
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
period Current Period
1. Wages or salaries,
bonuses, allowances 259,201,281.23 658,320,490.05 754,454,598.60 163,067,172.68
and subsidies
2. Employee Benefits 41,895,993.67 41,895,993.67
3. Social Insurance
21,157,221.74 21,157,221.74
Contributions
Including: Health
18,692,216.70 18,692,216.70
Insurance Premium
Work Injury
1,560,835.34 1,560,835.34
Insurance Premium
Maternity
904,169.70 904,169.70
Insurance Premium
4. Housing Provident
31,754,139.44 31,754,139.44
Fund
5. Labor Union and
Employee Education 63,444,780.22 10,470,406.19 5,681,984.26 68,233,202.15
Funds
Total 322,646,061.45 763,598,251.09 854,943,937.71 231,300,374.83
(3) Defined Contribution Scheme
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
1. Basic Pension
36,979,239.63 36,979,239.63
Insurance
2. Unemployment
1,317,937.58 1,317,937.58
Insurance Premium
Total 38,297,177.21 38,297,177.21
25. Taxes Payable
Unit: RMB
Item Closing Balance Opening Balance
VAT 8,905,853.03 30,247,041.09
Enterprise Income Tax 230,984,629.40 197,310,396.17
Individual Income Tax 2,442,043.62 1,951,726.31
Urban Maintenance and Construction 2,537,948.93 1,971,609.80
151
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Tax
Land VAT 14,859,137.93 14,519,045.43
House Property Tax 3,332,115.58 13,209,123.23
Land Usage Tax 5,420,464.00 8,067,682.42
Education Surcharges (including Local
2,283,195.89 1,537,328.96
Education Surcharges)
Stamp Duty 16,134.43 7,902.60
Local Water Conservancy Construction
39,142.74
Fund
Environmental Protection Tax 3,473.63
Total 270,781,522.81 268,864,472.38
26. Other Payables
Unit: RMB
Item Closing Balance Opening Balance
Other Payables 52,150,619.55 129,839,228.89
Total 52,150,619.55 129,839,228.89
1) Other Payables Listed by Nature of Funds
Unit: RMB
Item Closing Balance Opening Balance
Guarantee Deposit 32,928,013.51 23,102,033.05
Equity Transfer Fund 83,904,479.79
Borrowed Funds 3,243,666.67
Temporary Receipts Payable 6,271,104.11 9,575,676.08
Earnest Money for Housing Purchase
392,991.00 1,893,256.00
(Boao NHU Resort Center)
Others 12,558,510.93 8,120,117.30
Total 52,150,619.55 129,839,228.89
27. Non-current Liabilities Due within 1 Year
Unit: RMB
Item Closing Balance Opening Balance
Long-term Debt Due within 1 Year 1,431,425,253.34 1,275,888,293.32
152
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Total 1,431,425,253.34 1,275,888,293.32
Item At the end of the reporting period At the beginning of the reporting period
Fiduciary Loans 1,093,364,045.13 836,245,918.20
Pledged Loans 7,711,902.65 9,054,944.56
Guaranteed Loans 330,349,305.56 430,587,430.56
Subtotal 1,431,425,253.34 1,275,888,293.32
28. Other Current Liabilities
Unit: RMB
Item Closing Balance Opening Balance
To-be-transferred Sales Taxes 3,406,847.42 4,956,463.49
Total 3,406,847.42 4,956,463.49
29. Long-term Borrowings
(1) Categories of Long-term Borrowings
Unit: RMB
Item Closing Balance Opening Balance
Pledged Borrowings 43,798,750.00 49,635,844.80
Guaranteed Borrowings 1,510,573,819.42 1,175,331,152.79
Fiduciary Borrowings 4,240,470,218.61 2,911,908,356.74
Total 5,794,842,788.03 4,136,875,354.33
30. Lease Liabilities
Unit: RMB
Item Closing Balance Opening Balance
Leased Buildings and Constructions 5,398,990.60 3,604,870.23
Total 5,398,990.60 3,604,870.23
Note: For the difference between the beginning of the reporting period and the end of the previous year (December 31, 2020), see
Chapter V.28 of this Section.
31. Deferred Income
Unit: RMB
153
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Increased in Decreased in
Opening
Item the current the Current Closing Balance Causes
Balance
period Period
Received government subsidies
Government related to assets, amortized by the
873,066,181.34 53,240,000.00 40,228,500.25 886,077,681.09
Subsidies depreciation progress of the
corresponding assets
Total 873,066,181.34 53,240,000.00 40,228,500.25 886,077,681.09 --
Projects related to government subsidies:
Unit: RMB
Amount Amount
The amount Amount
Recorded as Recorded as
Opening of new Written off Other Closing Related to
Liabilities Operating Other
Balance subsidies in Costs in This variations Balance Assets/Income
Revenue in Income in
this period Period
This Period This Period
Special Funds for
Biofermentation 24,668,010. 452,246,850.0
476,914,860.00 Related to assets
Industrial Park 00 0
Project
Special Funds for
Enterprise
4,836,300.1
Development 84,635,251.75 79,798,951.65 Related to assets
0
(Shandong
Vitamin)
Special Funds for
Xinhao Combined 1,887,499.9
35,547,916.69 33,660,416.71 Related to assets
Heat and Power 8
Project
2019 Technical
Renovation for
34,260,000.00 0.00 34,260,000.00 Related to assets
Green Deep
Processing
Special Funds for
Enterprise
38,950,549.48 572,802.18 38,377,747.30 Related to assets
Development
(Amino Acid)
Subsidies for
Shandong Site 29,026,913.28 359,094.72 28,667,818.56 Related to assets
Levelling
Shandong
19,285,039.00 218,907.06 19,066,131.94 Related to assets
Enterprise
154
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Amount Amount
The amount Amount
Recorded as Recorded as
Opening of new Written off Other Closing Related to
Liabilities Operating Other
Balance subsidies in Costs in This variations Balance Assets/Income
Revenue in Income in
this period Period
This Period This Period
Development
Funds
PPS Project with
Annual
13,238,499.92 913,000.02 12,325,499.90 Related to assets
Production of
10,000 Tons
Grants for PPS
Resin with Annual
Production of
5,000 Tons and
1,425,000.0
PPS Composite 11,400,000.00 9,975,000.00 Related to assets
0
Material with
Annual
Production of
6,000 Tons
Enterprise
Development
Funds of
8,690,037.83 99,125.88 8,590,911.95 Related to assets
Advanced
Manufacturing
Industrial Park
Effective Input
Expansion for 7,022,400.00 478,800.00 6,543,600.00 Related to assets
Industry in 2016
Funds for Key
Projects of
Industry
Revitalization and 5,351,785.70 713,571.42 4,638,214.28 Related to assets
Technological
Upgrading in
2012
Fiscal Subsidies
for Low-rent 6,339,417.24 120,428.58 6,218,988.66 Related to assets
Housing
Subsidies for
Shandong Land 5,123,252.66 125,115.78 4,998,136.88 Related to assets
Leasing for
155
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Amount Amount
The amount Amount
Recorded as Recorded as
Opening of new Written off Other Closing Related to
Liabilities Operating Other
Balance subsidies in Costs in This variations Balance Assets/Income
Revenue in Income in
this period Period
This Period This Period
Dormitories
Subsidies for
Input in Shangyu
4,898,735.72 158,885.94 4,739,849.78 Related to assets
Biochemical
Infrastructure
Public Testing
Service Platform
4,000,000.00 499,999.98 3,500,000.02 Related to assets
Construction
Project
Subsidies for
8,275,875.00 398,812.50 7,877,062.50 Related to assets
Infrastructure Fee
Compensation for
2017
3,840,000.00 240,000.00 3,600,000.00 Related to assets
Environment
Resources Project
Subsidies for
Land and
3,242,880.00 405,360.00 2,837,520.00 Related to assets
Infrastructure
Construction
2017 Special
Fiscal Funds for
Real Economy
Revitalization 2,679,299.82 269,614.28 2,409,685.54 Related to assets
(Traditional
Industry
Transformation)
Subsidies for RTO
1,666,666.86 199,999.98 1,466,666.88 Related to assets
Project
2017 Special
Funds for Marine
2,000,000.00 0.00 2,000,000.00 Related to assets
Economy
Development
Special Funds for
High Quality
2,109,286.90 152,478.60 1,956,808.30 Related to assets
Development of
Manufacturing
156
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Amount Amount
The amount Amount
Recorded as Recorded as
Opening of new Written off Other Closing Related to
Liabilities Operating Other
Balance subsidies in Costs in This variations Balance Assets/Income
Revenue in Income in
this period Period
This Period This Period
Enterprise
Development
52,224,561.00 52,224,561.00 Related to assets
Funds (Shandong
Refinement)
Special Funds for
Technological
20,500,000.
Upgrading 20,500,000.00 Related to assets
00
(Shandong
Vitamin)
Special Funds for
Warehouse
25,080,000.
Logistics 25,080,000.00 Related to assets
00
Assistance
Program
7,660,000.0 1,485,693.2
Other Subsidies 12,342,952.49 18,517,259.24 Related to assets
0 5
53,240,000. 40,228,500. 886,077,681.0
Subtotal 873,066,181.34
00 25 9
Note: For the government subsidies included in the current profits and losses, see Note VII (58) of this section.
32. Share Capital
Unit: RMB
Increased or Decreased Amount in the Current Period (+/-)
Shares Shares
Item Opening Balance Bonus Closing Balance
newly converted from Others Subtotal
shares
issued capital reserves
Total Shares 2,148,662,300.00 429,732,460.00 429,732,460.00 2,578,394,760.00
Note: According to the 2020 Annual Profit Distribution Plan passed by the resolution of the 2020 Annual General Meeting of
Stockholders, based on the total capital of 2,148,662,300.00 shares at the end of 2020, the Company distributes all shareholders 2
shares for each 10 shares by capital reserve, with a total of 429,732,460.00 shares transferred. The total share capital of the Company
after transferring is 2,578,394,760.00 shares. The above capital reserve converted to share capital has been verified by Pan-China
Certified Public Accountants LLP (Special General Partnership) who issued the Capital Verification Report (T.J.Y. [2021] NO. 234).
157
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
33. Capital Reserve
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
Capital Premium
(Capital Share 4,277,237,673.92 429,732,460.00 3,847,505,213.92
Premium)
Other Capital Reserves 283,284,882.92 283,284,882.92
Total 4,560,522,556.84 429,732,460.00 4,130,790,096.84
Reason for decrease/increase in the current period: Decrease in capital premium (equity premium) in the current period is the capital
reserve converted to share capital in the current period. For details, see VII.32
34. Other Comprehensive Incomes
Unit: RMB
This Period's Amount of Occurrence
Less: Recorded Less: Recorded into
into Other Other Attributa
Amount
Comprehensive Comprehensive Less: ble to the
Opening Occurred Attributable to
Item Incomes in Incomes in Previous Income Minority Closing Balance
Balance Before Income the Company
Previous Period Period and Tax Sharehol
Tax in the after Tax
and Transferred Transferred to Expense ders after
Current Period
to P/L in the Retained Income in Tax
Current Period the Current Period
Other Comprehensive
-2,976,68
Income That Will Be 27,803,829.31 -27,560,965.25 -11,402,449.39 16,401,379.92
2.86
Reclassified into P/L
Including: Other
Comprehensive
Income That Can Be
506,954.43 506,954.43
Transferred to P/L
under the Equity
Method
Difference
from Foreign Currency -2,976,68
27,296,874.88 -27,560,965.25 -11,402,449.39 15,894,425.49
Financial Statement 2.86
Translation
Other Comprehensive -2,976,68
27,803,829.31 -27,560,965.25 -11,402,449.39 16,401,379.92
Incomes in Total 2.86
158
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
35. Special Reserves
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
Safety Production
9,550,346.85 5,948,742.71 3,856,610.93 11,642,478.63
Costs
Total 9,550,346.85 5,948,742.71 3,856,610.93 11,642,478.63
36. Surplus Reserve
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
Statutory Surplus
1,074,331,150.00 1,074,331,150.00
Reserve
Total 1,074,331,150.00 1,074,331,150.00
37. Undistributed Profits
Unit: RMB
Item Current Period Previous Period
Undistributed Profit after Adjustment at the
11,515,384,739.95 9,158,233,971.76
Start of the Period
Add: Net Profit Attributable to Parent
2,408,499,133.50 2,208,930,277.20
Company's Owner in the Current Period
Less: Payable Dividends on Ordinary Shares 1,504,063,610.00 1,074,331,150.00
Undistributed Profit at the End of the Period 12,419,820,263.45 10,292,833,098.96
38. Operating Income and Operating Costs
Unit: RMB
This Period's Amount of Occurrence Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 7,180,589,252.55 3,709,144,810.85 5,285,935,511.71 2,133,390,266.47
Other Businesses 73,632,385.46 46,180,234.17 17,229,990.54 10,418,794.02
Total 7,254,221,638.01 3,755,325,045.02 5,303,165,502.25 2,143,809,060.49
Note: Costs incurred from performance of contracts is included in the operating costs in the current period. For details, see chapter V.
28 of this section.
159
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Information about revenue:
Unit: RMB
Contract Classification Total
Principal Place of Business
Domestic 3,295,559,229.13
Overseas 3,958,662,408.88
Subtotal 7,254,221,638.01
Main Business Types
Nutritional products 5,452,151,744.71
Essences and fragrances 1,126,980,745.24
New materials 418,367,560.13
Others 256,721,587.93
Subtotal 7,254,221,638.01
Time of Revenue Recognition
Including: Commodities
7,254,221,638.01
(Transferred at a Point)
Subtotal 7,254,221,638.01
Information about performance of obligations:
N/A
Information about transaction price allocated to the remaining performance of obligations:
The revenue corresponding to the performance of obligations under the contracts which are signed but are not performed or
not performed completely at the end of this reporting period is RMB 1,021,907,408.90, in which RMB 1,021,907,408.90 is estimated
to be recognized as revenue in 2021.
39. Taxes and Surcharges
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Urban Maintenance and Construction
16,593,941.36 15,662,602.92
Tax
Education Surcharges 15,258,637.11 14,468,776.36
Land VAT 640,367.32 225,819.50
Stamp Duty 2,929,669.52 2,022,185.58
House Property Tax 11,778,391.04 5,418,917.10
Land Usage Tax 12,989,995.35 12,236,260.22
160
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Vehicle and Vessel Use Tax 24,675.80 19,653.13
Environmental Protection Tax 578,646.58 516,644.89
Total 60,794,324.08 50,570,859.70
40. Selling Expenses
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Handling Charges and Transportation
1,466,649.89 79,683,153.39
Premium
Sales Commission and Customs
17,692,240.72 18,789,506.93
Clearance Fee
Advertising and Promotion Expenses,
3,567,586.35 3,848,627.67
and Business Entertainment Expenses
Payroll 23,212,723.68 20,689,730.57
Office and Traveling Expenses 5,649,153.96 4,780,171.09
Others 3,891,220.30 4,266,297.87
Total 55,479,574.90 132,057,487.52
Note: Costs incurred from performance of contracts in the selling expenses is included in the operating costs in the current period.
For details, see V. 28 of this section.
41. Administration Expenses
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Payroll 91,901,943.55 96,800,579.80
Office and Traveling Expenses 15,975,577.72 13,006,051.13
Depreciation Cost and Intangible Asset
42,187,840.96 32,300,328.20
Amortization
Business Entertainment Expenses 9,654,999.32 6,059,332.99
Insurance Premium 7,655,409.05 6,742,146.81
Others 20,130,143.50 28,988,037.37
Total 187,505,914.10 183,896,476.30
42. R&D Expenses
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
161
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Direct Input 126,033,421.52 59,560,240.63
Payroll 149,468,367.40 110,880,668.96
Depreciation Cost and Intangible Asset
24,293,575.58 18,736,565.61
Amortization
Office and Traveling Expenses 15,628,605.63 8,169,701.42
Outsourcing Cost 13,402,568.01 10,686,584.62
Others 22,706,226.41 11,119,177.39
Total 351,532,764.55 219,152,938.63
43. Financial Expenses
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Interest Expenditures 162,484,715.95 110,160,929.73
Less: Interest Income 72,107,022.92 15,204,954.21
Exchange gains or losses (Mark "-" for
43,236,369.19 -28,926,159.63
Incomes)
Others 10,916,076.87 10,277,155.91
Total 144,530,139.09 76,306,971.80
44. Other Incomes
Unit: RMB
Sources of Other Income This Period's Amount of Occurrence Amount Occurred in the Previous Period
Government Subsidies Related to Assets 40,228,500.25 15,893,203.74
Government Subsidies Related to
33,328,436.43 28,936,325.99
Income
Charge Return for Withholding
1,139,113.99 819,130.22
Individual Income Tax
Total 74,696,050.67 45,648,659.95
Note: For the government subsidies included in other income in the current period, see Notes VII (58) of this section.
45. Investment Income
Unit: RMB
Amount Occurred in the Previous
Item This Period's Amount of Occurrence
Period
Long-term Equity Investment Income 15,735,226.24 5,431,597.21
162
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Measured by Equity Method
Investment Income from Possession of
Financial Instruments
Including: Investment in Other Equity
Instruments
Investment Income from Disposal Trading
-370,729.11 -10,125,310.54
Financial Assets
Including: Financial Assets at Fair Value
2,643,037.39 140,624.46
through Profit or Loss in the Current period
Financial Liabilities Measured at Fair Value
with Changes Recorded into Current Profit -3,013,766.50 -10,265,935.00
and Loss
Interest from Discounting Notes
Income from Bank Financial Products and
29,617,969.78 73,491,805.92
Structured Deposits
Total 44,982,466.91 68,798,092.59
46. Income from Changes in Fair Value
Unit: RMB
Sources of Income from Changes in Fair
This Period's Amount of Occurrence Amount Occurred in the Previous Period
Value
Trading Financial Assets 25,239,240.62 1,916,459.91
Transactional financial liabilities -1,567,482.48 8,520,857.22
Total 23,671,758.14 10,437,317.13
47. Credit Impairment Loss
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Losses on Bad Debts -33,637,204.20 -48,988,895.82
Total -33,637,204.20 -48,988,895.82
48. Asset Impairment Loss
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Loss from Impairment of Inventories
-6,714,482.90 -2,095,132.82
and Impairment of Performance Cost
163
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Total -6,714,482.90 -2,095,132.82
49. Asset Disposal Income
Unit: RMB
Sources of Asset Disposal Income This Period's Amount of Occurrence Amount Occurred in the Previous Period
Profit and Loss from Disposal of
1,065,564.79 84,077.01
Non-current Assets
Total 1,065,564.79 84,077.01
50. Non-operating Revenues
Unit: RMB
Amount Recorded into
This Period's Amount of Amount Occurred in the
Item Non-recurring Profit and Loss
Occurrence Previous Period
in the Current Period
Income from Indemnification 9,044,364.95 753,931.20 9,044,364.95
Others 1,302,076.50 160,792.02 1,302,076.50
Total 10,346,441.45 914,723.22 10,346,441.45
51. Non-operating Expense
Unit: RMB
Amount Recorded into
This Period's Amount of Amount Occurred in the
Item Non-recurring Profit and Loss
Occurrence Previous Period
in the Current Period
Donations 877,525.00 10,117,774.40 877,525.00
Local Water Conservancy
298,453.46
Construction Fund
Others 1,041,504.53 1,549,137.28 1,041,504.53
Total 1,919,029.53 11,965,365.14 1,919,029.53
52. Income Tax Expense
(1) Income Tax Expense Table
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Current Income Tax Expense 374,095,395.38 345,849,333.57
164
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Deferred Income Tax Expense 20,614,465.84 42,127.46
Total 394,709,861.22 345,891,461.03
(2) Reconciliation of Accounting Profits and Income Tax Expenses
Unit: RMB
Item This Period's Amount of Occurrence
Total Profit 2,811,545,441.60
Income Tax Calculated at Statutory/Applicable Tax Rate 421,731,816.24
Impact by Applying Different Tax Rates to Subsidiaries -10,673,966.07
Impact of Income Tax before Adjustment in This Period -1,775,129.65
Impact of Non-taxable Revenue -1,192,681.53
Impact of the Non-deductible Costs, Expenses and Losses 1,067,622.05
Impact of Deductible Losses from Unrecognized Deferred
-22,437,104.00
Income Tax Assets in the Previous Period
Impact of Deductible Temporary Difference or Deductible
Losses from Unrecognized Deferred Income Tax Assets in the 62,976,030.77
Current Period
Impact of Additional Deduction of the Research and
-54,986,726.59
Development Expenses
Income tax expense 394,709,861.22
53. Other Comprehensive Income
For net of tax of other comprehensive income, see Note VII (34) of this section.
54. Items of Cash Flow Statement
(1) Other Cash Receipts Relating to Operating Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Bank Interest Income 72,170,716.37 14,595,570.94
Government Subsidies Received 82,860,435.49 37,322,837.08
Temporary Loans and Guarantee
4,650.00 2,190,342.70
Deposits Received
Other Net Amounts Received 11,267,812.52 5,966,638.94
165
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Total 166,303,614.38 60,075,389.66
(2) Other Cash Payments Relating to Operating Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
R&D Expenditure 9,072,525.23 5,073,304.02
Handling Charges and Transportation
0 73,804,213.88
Premium
Office and Traveling Expenses 11,497,951.02 11,818,804.30
Advertising and Promotion Expenses,
10,942,559.78 8,101,614.52
and Business Entertainment Expenses
Sales Commission and Customs
8,641,852.83 11,610,472.33
Clearance Fee
Insurance Premium 5,366,502.83 2,357,120.82
Other Expenses and Net Amounts 146,673,321.02 77,024,806.00
Total 192,194,712.71 189,790,335.87
(3) Other Cash Receipts Relating to Investing Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Financial Products Recovered at the
1,800,000,000.00 3,850,000,000.00
Beginning of this Period
Land Deposits Recovered 71,314,561.00
Deposits of Contingent Option
4,780,000.00
Recovered
Total 1,800,000,000.00 3,926,094,561.00
(4) Other Cash Payments Relating to Investing Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Purchased Financial Products 1,520,000,000.00 1,400,000,000.00
Total 1,520,000,000.00 1,400,000,000.00
(5) Other Cash Receipts Relating to Financing Activities
Unit: RMB
166
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Recovered Cash and Bank Balances
73,000,000.00
Pledged for Borrowing
Total 73,000,000.00
(6) Other Cash Payments Relating to Financing Activities
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Paid Charges for Bank Financing 2,069,877.48 6,799,330.40
Paid Charges for Issuing Loan Guarantee 1,293,530.21 2,596,211.80
Paid Cash and Bank Balances Pledged
61,887.76
for Borrowing
Total 3,363,407.69 9,457,429.96
55. Supplementary Information about the Cash Flow Statement
(1) Supplementary Information about the Cash Flow Statement
Unit: RMB
Supplementary Information Amount of this period Amount of Previous Period
1． Reconciliation of Net Profit to Cash
-- --
Flows from Operational Activities:
Net Profit 2,416,835,580.38 2,214,313,722.90
Add: Provision for Impairment of
40,351,687.10 51,184,028.64
Assets
Depreciation of Fixed Assets,
Oil and Gas Assets, Productive Biological 578,079,485.24 343,991,868.23
Assets
Depreciation of Right-of-use
448,385.93
Assets
Amortization of Intangible
16,731,412.82 15,921,794.71
Assets
Amortization of Long-term
1,942,593.41 457,395.84
Prepaid Expenses
Losses on Disposal of Fixed
Assets, Intangible Assets and Other -1,065,564.79 -84,077.01
Long-term Assets (Mark "-" for Incomes)
Losses on Scrapping of Fixed 17,993.76
167
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Supplementary Information Amount of this period Amount of Previous Period
Assets (Mark "-" for Incomes)
Losses on Fair Value Changes
-23,671,758.14 -10,437,317.13
(Mark "-" for Incomes)
Financial Expenses (Mark "-"
209,472,718.30 88,948,908.07
for Incomes)
Losses on Investment (Mark "-"
-44,982,466.91 -68,798,092.59
for Incomes)
Decrease on Deferred Income
-4,073,229.10 -8,999,940.93
Tax Assets (Mark "-" for Incomes)
Increase on Deferred Income
24,687,694.94 9,042,068.39
Tax liabilities (Mark "-" for Decreases)
Decrease on Inventories (Mark
-401,877,126.78 -253,520,308.60
"-" for Increases)
Decrease on Operational
-234,285,135.31 -454,214,969.17
Receivables (Mark "-" for Increases)
Increase on Operational
-307,454,789.08 -800,082,861.24
Payables (Mark "-" for Decreases)
Others -162,000.00
Net cash flow generated by
2,271,157,481.77 1,127,560,220.11
operating activities
2． Major Investing and Financing
Activities Not Involving Cash Receipts -- --
and Payments:
Conversion of Debt into Capital
Convertible Bonds Due within 1 Year
Fixed Assets under Finance Lease
3． Net Changes in Cash and Cash
-- --
Equivalents:
Closing Balance of Cash 6,182,163,497.57 5,241,316,156.88
Less: Opening Balance of Cash 4,669,306,776.09 3,213,557,815.42
Add: Closing Balance of Cash
Equivalents
Less: Opening Balance of Cash
Equivalents
Net additions to balance of
1,512,856,721.48 2,027,758,341.46
equivalents
168
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
(2) Composition of Cash and Cash Equivalents
Unit: RMB
Item Closing Balance Opening Balance
I. Cash 6,182,163,497.57 4,669,306,776.09
Including: Cash on Hand 17,148.82 10,735.55
Bank Deposit for Payment at Any
6,182,146,348.75 4,669,296,040.54
Time
III. Closing Balance of Cash and Cash
6,182,163,497.57 4,669,306,776.09
Equivalents
Other notes:
The closing balance of monetary funds is RMB 6,412,612,895.26, Bank Acceptance Bill Deposit is RMB 205,331,116.11, L/C
Deposit is RMB 22,854,163.27, Deposit for Project Labor Wages is RMB 1,653,668.82, Construction Bond is RMB 404,439.49,
ETC Deposit is RMB 6,000.00, Guarantee Deposit for Water Charges is RMB 200,010.00，which is not Cash and Cash Equivalents:
The opening balance of monetary funds is RMB 4,927,657,236.24, Bank Acceptance Bill Deposit is RMB 233,849,274.66, L/C
Deposit is RMB 23,350,000.00, Deposit for Project Labor Wages is RMB 741,108.87, Construction Bond is RMB 404,076.62, ETC
Deposit is RMB 6,000.00，which is not Cash and Cash Equivalents.
56. Assets with Restricted Ownership Rights or Rights to Use
Unit: RMB
Item Closing Book Value Cause of Restrictions
See "Cash and Bank Balances" in the
Cash and Bank Balances 230,449,397.69
financial statement.
See "Notes Receivable" in the financial
Notes receivable 431,546,440.19
statement.
See "Receivables Financing" in the
Receivables Financing 8,890,529.21
financial statement.
Fixed assets 86,062,988.84 Mortgaged to bank for borrowing
Intangible Assets 10,074,981.26 Mortgaged to bank for borrowing
Total 767,024,337.19 --
57. Monetary Items in Foreign Currencies
(1) Monetary Items in Foreign Currencies
Unit: RMB
Closing Balance in Foreign Exchange Rate for Closing Balance Converted
Item
Currencies Conversion into RMB
169
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Cash and Bank Balances -- -- 690,101,206.42
Including: USD 88,548,944.83 6.4601 572,035,038.50
EUR 12,921,672.86 7.6862 99,318,561.94
HKD 1,569,397.45 0.8321 1,305,895.62
JPY 298,659,424.00 0.0584 17,441,710.36
Accounts receivable -- -- 1,980,934,756.26
Including: USD 260,651,154.68 6.4601 1,683,832,524.35
EUR 38,653,981.41 7.6862 297,102,231.91
Other Receivables 10,216,238.01
Including: EUR 1,325,734.49 7.6862 10,189,860.44
HKD 31,700.00 0.8321 26,377.57
Short-term Borrowings 512,201,680.42
Including: USD 15,032,244.28 6.4601 97,109,801.27
EUR 54,004,824.12 7.6862 415,091,879.15
Accounts Payable 76,696,793.52
Including: USD 108,418.10 6.4601 700,391.77
EUR 9,887,382.81 7.6862 75,996,401.75
Other Payables 651,815.14
Including: USD 88,746.64 6.4601 573,312.17
EUR 9,674.15 7.6862 74,357.45
HKD 4,982.00 0.8321 4,145.52
Non-current Liabilities Due
7,711,902.65
within 1 Year
Including: EUR 1,003,344.00 7.6862 7,711,902.65
Long-term Borrowings 43,798,750.00
Including: EUR 5,698,362.00 7.6862 43,798,750.00
(2) Notes on overseas business entities, including that for the important overseas business entities, the
overseas main premises, functional currency and selection basis shall be disclosed. If there are changes on
its functional currency, the causes for the changes shall be disclosed as well.
√ Applicable □ Not applicable
NHU Europe GmbH is the holding subsidiary of NHU (HONGKONG) TRADING COMPANY LIMITED, holding 51% of
shares. NHU PERFORMANCE MATERIALS GMBH is the wholly-owned subsidiary of NHU (HONGKONG) TRADING
COMPANY LIMITED; Bardoterminal GmbH is the wholly-owned subsidiary of NHU Europe GmbH. The three companies are
located at Lüneburg, German, and adopt EUR as the functional currency.
170
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
58. Government Subsidies
(1) Basic Information about Government Subsidies
1) Government subsidies related to assets
Unit: RMB
Items
Deferred Income Amortization Deferred Income
New Subsidies in Reported for
Project at the Beginning Expenses in This at the End of This Note
This Period Amortization
of This Period Period Period
in This Period
Special Funds for
S.J.K.G. (2018)
Biofermentation 476,914,860.00 24,668,010.00 452,246,850.00 Other income
No.55
Industrial Park Project
Special Funds for
Enterprise
84,635,251.75 4,836,300.10 79,798,951.65 Other income
Development
(Shandong Vitamin)
Special Funds for
Xinhao Combined S.J.K.G.W.H.
35,547,916.69 1,887,499.98 33,660,416.71 Other income
Heat and Power (2018) No.123
Project
2019 Technical
Z.F.G.M. (2019)
Renovation for Green 34,260,000.00 0.00 34,260,000.00 Other income
No.127
Deep Processing
Special Funds for
Enterprise
W.B.C.Z.Z. (2018)
Development 38,950,549.48 572,802.18 38,377,747.30 Other income
No.40
(Shandong
Amino-acids Acid)
Subsidies for
Shandong Site 29,026,913.28 359,094.72 28,667,818.56 Other income
Levelling
W.B.C.Z.Z. (2014)
No.513, W.B.C.Z.Z.
Shandong Enterprise
19,285,039.00 218,907.06 19,066,131.94 Other income (2016) No.194,
Development Funds
W.B.C.Z.Z. (2017)
No.307
PPS Project with
Annual Production of 13,238,499.92 913,000.02 12,325,499.90 Other income
10,000 Tons
Grants for PPS Resin
with Annual 11,400,000.00 1,425,000.00 9,975,000.00 Other income
Production of 5,000
171
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Items
Deferred Income Amortization Deferred Income
New Subsidies in Reported for
Project at the Beginning Expenses in This at the End of This Note
This Period Amortization
of This Period Period Period
in This Period
Tons and PPS
Composite Material
with Annual
Production of 6,000
Tons
Enterprise
Development Funds of
Advanced 8,690,037.83 99,125.88 8,590,911.95 Other income
Manufacturing
Industrial Park
Effective Input
Expansion for 7,022,400.00 478,800.00 6,543,600.00 Other income
Industry in 2016
According to Z.C.Q.
(2012) No. 276 of
Zhejiang Provincial
Department of
Finance and
Economy and
Funds for Key
Information
Projects of Industry
Technology
Revitalization and 5,351,785.70 713,571.42 4,638,214.28 Other income
Committee of
Technological
Zhejiang, the
Upgrading in 2012
company obtained
the special funds for
new cephalosporin
antibiotics project
with the annual
production of 10T.
Fiscal Subsidies for
6,339,417.24 120,428.58 6,218,988.66 Other income
Low-rent Housing
Subsidies for
Shandong Land
5,123,252.66 125,115.78 4,998,136.88 Other income
Leasing for
Dormitories
Subsidies for Input in
Shangyu Biochemical 4,898,735.72 158,885.94 4,739,849.78 Other income
Infrastructure
Public Testing Service 4,000,000.00 499,999.98 3,500,000.02 Other income
172
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Items
Deferred Income Amortization Deferred Income
New Subsidies in Reported for
Project at the Beginning Expenses in This at the End of This Note
This Period Amortization
of This Period Period Period
in This Period
Platform Construction
Project
Subsidies for
8,275,875.00 398,812.50 7,877,062.50 Other income
Infrastructure Fee
Compensation for
2017 Environment 3,840,000.00 240,000.00 3,600,000.00 Other income
Resources Project
Subsidies for Land
and Infrastructure 3,242,880.00 405,360.00 2,837,520.00 Other income
Construction
2017 Special Fiscal
Funds for Real
Economy X.C.Q. (2019)
2,679,299.82 269,614.28 2,409,685.54 Other income
Revitalization No.151
(Traditional Industry
Transformation)
Subsidies for RTO W.C.Q.Z. (2014)
1,666,666.86 199,999.98 1,466,666.88 Other income
Project No.207
2017 Special Funds
S.Y.C.J. (2018)
for Marine Economy 2,000,000.00 2,000,000.00 Other income
No.12
Development
Special Funds for
High Quality
2,109,286.90 152,478.60 1,956,808.30 Other income X.J.X. (2020) No.79
Development of
Manufacturing
Enterprise
Development Funds W.B.C.Z.Z. (2020)
52,224,561.00 52,224,561.00 Other income
(Shandong No.34
Refinement)
Special Funds for
Technological 20,500,000.00 20,500,000.00 Other income
Upgrading
Special Funds for
H.F.G.T.Z. (2020)
Warehouse Logistics 25,080,000.00 25,080,000.00 Other income
No.542
Assistance Program
Other Subsidies 12,342,952.49 7,660,000.00 1,485,693.25 18,517,259.24 Other income
Subtotal 873,066,181.34 53,240,000.00 40,228,500.25 886,077,681.09
2) Government subsidies related to income and used for compensating relevant costs or losses incurred by the Company
173
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Project Amount Items Reported Note
Government Rewards 3,542,654.00 Other income Related to income
Others 29,785,782.43 Other income Related to income
Subtotal 33,328,436.43
3) Interest subsidies
Deferred Income Amount of New Carry-forwarded Deferred Income
Items Reported in the
Project at the Beginning Subsidies in the Subsidies in the at the End of This Note
Current Period
of This Period Current Period Current Period Period
Interest
2,823,740.28 2,823,740.28 Financial expenses
subsidies
Subtotal 2,823,740.28 2,823,740.28
4) Government subsidies recorded into P/L in the current period is RMB 73,556,936.68
(2) Repayment of Government Subsidies
□ Applicable √ Not applicable
VIII. Changes in the Scope of Consolidation
1. Changes in the Scope of Consolidation for Other Reasons
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production
Company Name
subsidiaries during the reporting period management and performance
Zhejiang NHU Nylon Materials Co.,
Newly established N/A
Ltd.
Zhejiang NHU Nylon Materials Co., Ltd. was established on March 5, 2021, as a wholly-owned subsidiary of Zhejiang
NHU Co., Ltd.
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of Important Subsidiaries
Name of Main Place of Registered Business Shareholding Percentage Acquisition
Subsidiaries Business Address Nature Direct Indirect Method
Shangyu Shangyu, Shangyu,
Manufacturing 100.00% Establishment
Bio-Chem Zhejiang Zhejiang
174
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Shandong Weifang, Weifang,
Manufacturing 100.00% Establishment
Pharmaceutical Shandong Shandong
NHU (Hong Hong Kong, Hong Kong,
Commerce 100.00% Establishment
Kong) China China
Zhejiang
Shangyu, Shangyu,
Special Manufacturing 100.00% Establishment
Zhejiang Zhejiang
Materials
Shandong Weifang, Weifang,
Manufacturing 100.00% Establishment
Amino-acids Shandong Shandong
Shandong Weifang, Weifang,
Manufacturing 100.00% [Note 1] Establishment
Vitamins Shandong Shandong
NHU EUROPE Luneburg, Luneburg,
Trade 51.00% [Note 2] Establishment
GmbH Germany Germany
Shandong NHU
Weifang, Weifang,
Holdings Co., Service 100.00% Establishment
Shandong Shandong
Ltd.
Heilongjiang
Suihua, Suihua,
Biological Manufacturing 100.00% Establishment
Heilongjiang Heilongjiang
Technology
Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:
[Note 1]: Held through the subsidiary Shandong NHU Holdings Co., Ltd.
[Note 2]: Held through the subsidiary NHU (Hong Kong) Trading Co., Ltd.
(2) Important Non-Wholly Owned Subsidiaries
Unit: RMB
Profit or Loss
Dividends Declared to Minority Shareholders'
Minority Shareholding Attributable to
Name of Subsidiaries Minority Shareholders Equity Balance at the
Percentage Minority Shareholders
in the Current Period End of the Period
in the Current Period
NHU EUROPE GmbH 49.00% 8,336,446.88 13,181,833.00 59,754,458.04
(3) Main Financial Information of Important Non-Wholly Owned Subsidiaries
Unit: RMB
Closing Balance Opening Balance
Name of Non-cu Non-cu
Non-cur Current Total Non-cu Current Total
Subsidiari Current Total rrent Current Total rrent
rent Liabiliti Liabiliti rrent Liabiliti Liabiliti
es Assets Assets Liabiliti Assets Assets Liabiliti
Assets es es Assets es es
es es
175
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
NHU
719,681, 103,611, 823,293 657,546 43,798, 701,345 557,333 109,005 666,339 478,792 49,635, 528,428
EUROPE
547.47 569.82 ,117.29 ,493.74 750.00 ,243.74 ,673.19 ,921.19 ,594.38 ,469.90 844.80 ,314.70
GmbH
Unit: RMB
This Period's Amount of Occurrence Amount Occurred in the Previous Period
Cash Flow
Name of Cash Flow
Total Total Generated
Subsidia Operating Generated by Operating
Net Profit Comprehensiv Net Profit Comprehens by
ries Income Operational Income
e Income ive Income Operational
Activities
Activities
NHU
EUROPE 880,665,472.68 17,013,156.89 10,938,293.87 64,150,528.47 883,804,563.98 10,986,623.88 13,244,306.13 5,608,973.28
GmbH
2. Equity in joint venture arrangements or affiliates
(1) Essential Joint Ventures or Affiliates
Shareholding Percentage Accounting
Names of Joint Treatment of
Main Place of Registered Business
Ventures or Investment in
Business Address Nature Direct Indirect
Affiliates Joint Ventures or
Affiliates
Zhejiang
Chunhui
Environmental Shangyu, Shangyu, Equity Method
Manufacturing 34.2857%
Protection Zhejiang Zhejiang Accounting
Energy Co.,
Ltd.
DSM NHU
Engineering
Shangyu, Shangyu, Equity Method
Materials Manufacturing 40.00%
Zhejiang Zhejiang Accounting
(Zhejiang) Co.,
Ltd.
Zhejiang Saiya
Chemical Shangyu, Shangyu, Equity Method
Manufacturing 49.00%
Materials Co., Zhejiang Zhejiang Accounting
Ltd.
(2) Main Financial Information of Essential Affiliates
Unit: RMB
176
2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Closing balance / accrual of current period Opening balance / accrual of previous period
Zhejiang Zhejiang
DSM NHU DSM NHU
Chunhui Zhejiang Saiya Chunhui Zhejiang Saiya
Engineering Engineering
Item Environmental Chemical Environmental Chemical
Materials Materials
Protection Materials Co., Protection Materials Co.,
(Zhejiang) Co., (Zhejiang) Co.,
Energy Co., Ltd. Energy Co., Ltd.
Ltd. Ltd.
Ltd. Ltd.
Current Assets 280,686,009.25 52,735,054.71 75,428,896.63 315,880,629.16 46,855,677.24 45,646,530.22
Non-current
505,003,788.24 14,324,539.25 167,271,429.38 455,644,920.86 14,760,235.10 175,471,429.07
Assets
Total Assets 785,689,797.49 67,059,593.96 242,700,326.01 771,525,550.02 61,615,912.34 221,117,959.29
Current
129,316,023.82 80,713,865.12 35,917,911.67 167,519,267.96 74,217,481.09 19,238,056.31
Liabilities
Non-current
25,724,192.09 2,631,735.00 22,544,241.63 2,804,190.00
Liabilities
Total Liabilities 155,040,215.91 80,713,865.12 38,549,646.67 190,063,509.59 74,217,481.09 22,042,246.31
Equity
attributable to
shareholders of 630,649,581.58 -13,654,271.16 204,150,679.34 581,462,040.43 -12,601,568.75 199,075,712.98
the parent
company
Share of net
assets
calculated
216,222,623.59 -5,461,708.46 100,033,832.88 199,358,330.80 -5,040,627.50 97,547,099.36
based on the
shareholding
ratio
- Goodwill 762,611.33 762,611.33
Book value of
equity
216,222,623.59 100,796,444.21 199,358,330.80 98,309,710.69
investment in
affiliates
Operating
196,623,027.27 54,950,710.21 139,702,151.72 120,727,989.91 17,313,621.45 86,849,470.71
Income
Net Profit 49,187,541.15 -1,052,702.41 5,074,966.36 20,939,914.44 -11,463,484.97 1,343,850.82
Total
Comprehensive 49,187,541.15 -1,052,702.41 5,074,966.36 20,939,914.44 -11,463,484.97 1,343,850.82
Income
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(3) Financial Summary of Non-essential Joint Ventures and Affiliates
Unit: RMB
Closing balance / accrual of current Opening balance / accrual of previous
Item
period period
Affiliates: -- --
Total book value of investments 42,063,121.53 45,710,849.69
The total count of the following items
-- --
based on the shareholding ratios
--Net profit -656,507.53 -1,613,290.77
--Total comprehensive income -656,507.53 -1,613,290.77
(4) Excess Losses Incurred by Joint Ventures or Affiliates
Unit: RMB
Accumulated unrecognized Unrecognized loss in the Accumulated unrecognized
Names of Joint Ventures or
losses accumulated in the current period (or net profit losses at the end of the
Affiliates
prior period shared in the current period) current period
Zhejiang Sanpo Polymer Co.,
-46,012,244.60 -298,266.67 -46,310,511.27
Ltd.
X. Risks Relating to Financial Instruments
The objective of the Company in engaging in risk management is to strike a balance between risks and returns, to minimize the
negative impact of risks on the Company's operating performance, and to maximize the interests of shareholders and other equity
investors. Based on this risk management objective, the fundamental strategy of the Company's risk management is to identify and
analyze various risks to which the Company is exposed, establish appropriate risk tolerance bottoms and conduct risk management,
and monitor various risks in a timely and reliable manner to keep them within bounds.
The Company is exposed to various risks relating to financial instruments in its day-to-day operations, mainly including credit
risk, liquidity risk and market risk. The management has deliberated and approved policies to manage these risks, as summarized
below:
(I) Credit Risk
The credit risk refers to the risk of one party of a financial instrument suffering financial losses due to the other party's inability
to perform its obligations.
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
The Company assesses at each balance sheet date whether the credit risk of relevant financial instruments has increased
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substantially since initial recognition. In determining whether credit risk has increased substantially since initial recognition, the
Company considers reasonable and substantiated information available without incurring unnecessary additional costs or efforts,
including qualitative and quantitative analysis based on historical data, external credit risk ratings and forward-looking information.
Based on a single financial instrument or a portfolio of financial instruments with similar credit risk profiles, the Company
determines the change in the risk of default over the expected life of financial instruments by comparing the risk of default of the
financial instruments at the balance sheet date with the risk of default at the initial recognition date.
The Company considers a significant increase in the credit risk of a financial instrument to have occurred when one or more of
the following quantitative and qualitative criteria are triggered:
1) The quantitative criteria are mainly defined as an increase in the probability of default for the remaining duration on the
balance sheet date by more than a certain proportion compared to the time of initial recognition;
2) The qualitative criteria are mainly defined as material adverse changes in the debtors' operating or financial conditions,
existing or anticipated changes in the technological, market, economic or legal environment that will have material adverse effects on
the debtors' ability to repay the Company, and so on.
(2) Definition of Defaulted and Credit Impaired Assets
The Company defines a financial asset as having defaulted when the financial instrument meets one or more of the following
conditions, the criteria of which are consistent with the definition of having incurred credit impairment:
1) The debtor runs into material financial difficulties;
2) The debtor violates the terms binding on it in the contract;
3) The debtor is highly likely to become insolvent or undergo other financial restructuring;
4) The creditor grants concessions to the debtor that the debtor would not have made in any other situation due to economic or
contractual considerations related to the debtor's financial difficulties.
2. Measurement of Expected Credit Losses
The key parameters for the measurement of expected credit losses include probability of default, loss given default and
exposure to default. The Company considers quantitative analysis of historical data (such as counterparty ratings, types of guarantees
and pledges, and repayment methods) and forward-looking information to establish the probability of default, loss given default and
exposure to default risk.
3. A reconciliation of the allowance for losses on financial instruments at the beginning and end of the period is detailed in the
notes to this section VII 3, 4 and 7 of the Financial Report.
4. Credit Risk Exposure and Concentration of Credit Risk
The Company's credit risk mainly arises from monetary funds, and accounts receivable. To control the above related risks, the
Company has taken the following measures, respectively.
(1) Monetary funds
The Company places bank deposits and other monetary funds in financial institutions with high credit ratings, thus its credit
risk is low.
(2) Accounts receivable
The Company continuously conducts credit evaluations of customers who choose credit transactions. Based on the credit
evaluation results, the Company engages in transactions with approved and creditworthy customers and monitors their receivable
balances to ensure that the Company is not exposed to material bad debt risk.
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Since the Company only deals with approved and creditworthy third parties, no collateral is required. The concentration of
credit risk is managed on a customer basis. As of June 30, 2021, the Company has certain credit concentration risk, with 40.92%
(35.19% on December 31, 2020) of the Company's accounts receivable originating from the top five customers in terms of balance.
The Company does not hold any collateral or other credit enhancements on its accounts receivable balances.
The Company's maximum exposure to credit risk is the book value of each financial asset in the balance sheet.
(II) Liquidity Risk
The liquidity risk refers to the risk of a shortage of funds when the Company fulfills its obligation of settlement by cash or
other financial assets. Liquidity risk may arise from the inability to sell financial assets at fair value promptly; or from the inability of
the other party to repay its contractual debts; or from early maturity of debts; or from the inability to generate expected cash flows.
To control this risk, the Company uses a combination of financing instruments including note settlement and bank Loan, and
adopts an appropriate combination of long- and short-term financing methods to optimize the financing structure and maintain a
balance between financing sustainability and flexibility. The Company has obtained bank credit lines from a number of commercial
banks to meet working capital requirements and capital expenditures.
Classification of financial liabilities by remaining maturity
Unit: RMB
At the end of the reporting period
Project Undiscounted contractual
Book Value Within 1 Year 1-3 years 3 years or above
amount
Bank Loan 9,624,275,893.96 10,179,010,336.67 4,125,617,367.31 5,499,429,748.01 553,963,221.35
Notes Payable 668,896,544.92 668,896,544.92 668,896,544.92
Accounts 1,445,062,033.91 1,445,062,033.91
1,445,062,033.91
Payable
Other Payables 52,150,619.55 52,150,619.55 52,150,619.55
Subtotal 11,790,385,092.34 12,345,119,535.05 6,291,726,565.69 5,499,429,748.01 553,963,221.35
(Continued)
Unit: RMB
At the beginning of the reporting period
Project Undiscounted
Book Value Within 1 Year 1-3 years 3 years or above
contractual amount
Bank Loan 7,776,288,840.18 8,221,866,812.16 3,874,954,917.32 4,176,224,771.56 170,687,123.28
Notes Payable 497,644,517.23 497,644,517.23 497,644,517.23
Accounts Payable 1,463,728,316.04 1,463,728,316.04 1,463,728,316.04
Other Payables 129,839,228.89 129,839,228.89 129,839,228.89
Subtotal 9,867,500,902.34 10,313,078,874.32 5,966,166,979.48 4,176,224,771.56 170,687,123.28
(III) Market Risk
The market risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to the change
of market price. Market risk mainly includes interest rate risk and foreign exchange risk.
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1. Interest Rate Risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to the
change of market interest rate. The Company is exposed to fair value interest rate risk for fixed-rate interest-bearing financial
instruments, and to cash flow interest rate risk for floating-rate interest-bearing financial instruments. The Company determines the
proportion of fixed- and floating-rate financial instruments based on market circumstances and maintains an appropriate mix of
financial instruments through regular review and monitoring. The Company's exposure to cash flow interest rate risk relates primarily
to the Company's Loan that bear interest at floating rates.
As of June 30, 2021, the Company's bank Loan at floating interest rates is RMB 9,624,275,893.96 (RMB7,776,288,840.18 on
December 31, 2020). A hypothetical change of 50 basis points in interest rates, assuming other variables remain unchanged, would
not have a material impact on the Company's total profit and shareholders' equity.
2. Foreign Exchange Risk
The foreign exchange risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to
the change of foreign exchange rate. The Company's exposure to changes in foreign exchange rates relates primarily to the
Company's assets and liabilities denominated in foreign currencies. For assets and liabilities denominated in foreign currencies, in the
event of a short-term imbalance, the Company will buy or sell foreign currencies at market rates when necessary to ensure that the
net risk exposure is maintained at an acceptable level.
Details of the Company's period-end assets and liabilities denominated in foreign currencies are described in VII 57(1) of this
section of the Financial Report.
XI. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Fair values at period-end
Third level
Item First level measurement Second level
measurement at fair Total
ata fair value measurement at fair value
value
I. Constant
measurement at fair -- -- -- --
value
1. Trading Financial
6,426,200.12 1,320,000,000.00 1,326,426,200.12
Assets
Financial Assets at
Fair Value through
6,426,200.12 1,320,000,000.00 1,326,426,200.12
Profit or Loss in This
Period
Including:
Principal-Protected 1,320,000,000.00 1,320,000,000.00
Floating -Income
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Financial Products
Derivative Financial
6,426,200.12 6,426,200.12
Assets
2. Receivables
33,076,624.55 33,076,624.55
Financing
3. Investment in Other
22,998,147.55 22,998,147.55
Equity Instruments
Total assets constantly
6,426,200.12 1,376,074,772.10 1,382,500,972.22
measured at fair value
2. For the continuous and non-continuous second-level fair value measurement items, the valuation
techniques adopted and the qualitative and quantitative information of important parameters
The fair value was determined based on the quoted forward exchange rate published by Bank of China Limited. at the end of
the period.
3. For the continuous and non-continuous third-level fair value measurement items, the valuation
techniques adopted and the qualitative and quantitative information of important parameters
1. For the purchased principal-protected floating-income short-term bank financial products and structured deposits, their fair
values were determined by their face values.
2. For bank acceptance bills, their fair values were determined by their face values.
3. The Company adopted the cost of investment as a reasonable estimate of fair value because there were no significant
changes in the business environment, operating conditions and financial position of the invested companies, Second Pharma Co.,Ltd.
and Shanghai NewMargin Yongjin Eqiuty Enterprise
XII. Related Parties and Related-party Transactions
1. The Company's Parent Company
Shareholding ratio Proportion of
Name of parent Registered
Business Nature Registered Capital of the parent voting rights of the
company Address
company parent company
NHU Holding Xinchang,
Manufacturing 120 million 48.55% 48.55%
Group Co., Ltd. Zhejiang
Description of the Company's parent company
The ultimate controlling party of the Company is a natural person, Hu Baifan.
2. Information about the Company's subsidiaries
Details of the Company's subsidiaries are provided in the notes to this section IX.1 of the Financial Report.
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3. Information about the Company's joint ventures and affiliates
Details of the Company's essential joint ventures and affiliates are provided in the notes to this section IX.2 of the Financial Report.
Here are the information about other joint ventures and affiliates that have related-party transactions with the Company in the current
period or have balance from related-party transactions with the Company in the previous period:
Names of joint ventures and affiliates Relationship with the Company
Zhejiang Chunhui Environmental Protection Energy Co., Ltd. Affiliates of the Company
Zhejiang Saiya Chemical Materials Co., Ltd. Affiliates of the Company
DSM NHU Engineering Materials (Zhejiang) Co., Ltd. Affiliates of the Company
4. Information about other related parties
Names of other related parties Relationship between the Company and other related parties
SYNCHEM INTERNATIONAL CO.,LTD Joint-stock company by the Company's actual controller
Beijing Winsunny Pharmaceutical CO.,LTD Controlled by NHU Holding Group Co., Ltd.
Zhejiang ASEN Pharmaceutical Co.,Ltd Controlled by NHU Holding Group Co., Ltd.
Xinchang County Hechun Greening 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.
Xinchang County 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.
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.
Boao Qionghai Holliyard Hotel Management Co., Ltd Controlled by NHU Holding Group Co., Ltd.
Shaoxing Heyue Property Services Co., Ltd Controlled by NHU Holding Group Co., Ltd.
Shangyu Shaoxing NHU Real Estate Co., Ltd Controlled by NHU Holding Group Co., Ltd.
Xinchang Qinjin Investment Co., Ltd. Holding company by the Company's actual controller
Shaoxing Formost Material Co., Ltd. Joint-stock company by the Company's actual controller
Heilongjiang Haotian Corn Development Co., Ltd. Subsidiary as minority shareholder
Other notes
Customer Three holds 25% of the equity in NHU Europe GmbH, a controlling subsidiary of the Company's subsidiary, NHU
(Hong Kong) Trading Co., Ltd. For the sake of prudence, the Company discloses the transactions and payment balances between
Customer Three and the subsidiary NHU Europe GmbH in related-party transactions.
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5. Information about related-party transactions
(1) Related-party transactions involving purchase and selling of merchandise and provision and acceptance
of labor services
Merchandise purchase and acceptance of labor services
Unit: RMB
Content of the This Period's Over the Previous Period's
Approved
Related parties related - party Amount of transaction Amount of
transaction limit
transaction Occurrence limit or not Occurrence
Zhejiang Deli Equipment Purchase of
22,406,681.48 90,000,000.00 No 25,086,854.11
Co., Ltd. merchandise
Zhejiang Chunhui Purchase of steam 43,692,487.59 70,200,000.00 No 32,340,736.57
Environmental Protection Waste treatment
68,688.20 133,030.80
Energy Co., Ltd. service fee
Zhejiang Saiya Chemical Purchase of
100,257,926.52 175,000,000.00 No 75,061,380.31
Materials Co., Ltd. merchandise
Zhejiang ASEN Purchase of
1,255,535.33 1,019,964.60
Pharmaceutical Co.,Ltd merchandise
Xinchang County Hechun Purchase of
3,981,660.62 9,089,239.86
Greening Co., Ltd merchandise
Catering and
Boao Qionghai Holliyard
accommodation 64,855.00 41,229.00
Hotel Management Co., Ltd
services
Qionghai Heyue Property Property
375,616.74 317,448.87
Services Co., Ltd management
Shaoxing Heyue Property Property
187,934.15 212,058.42
Services Co., Ltd management
Catering and
Xinchang County NHU Real
accommodation 465,980.79 270,148.21
Estate Co., Ltd
services
Shandong Bin'an Technology
Training fee 185,789.16 0.00
Co., Ltd.
Subtotal 172,943,155.58 143,572,090.75
Sales of merchandise and provision of services
Unit: RMB
Content of the
This Period's Amount of Amount Occurred in the
Related parties related - party
Occurrence Previous Period
transaction
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Pharmaceutical
SYNCHEM INTERNATIONAL CO.,LTD 78,979,450.67 55,169,808.72
intermediates
Front Pharmaceutical Plc. Testing fee 6,018.87
Pharmaceutical
Beijing Winsunny Pharmaceutical CO.,LTD 141,509.43
intermediates
Pharmaceutical
Zhejiang ASEN Pharmaceutical Co.,Ltd 297,917.51 566,371.68
intermediates
New materials 40,144,943.15 13,390,484.38
Utility bill 525,305.20 181,002.80
DSM NHU Engineering Materials (Zhejiang)
Co., Ltd. Loading and
unloading 28,245.28
charges
Total 120,117,371.24 69,313,686.45
(2) Related leasing
The Company being the lessor:
Unit: RMB
Rental income
Rental income confirmed
Name of the lessee Type of the leased assets confirmed in this
in the previous period
period
Boao Qionghai Holliyard Hotel Land use rights and
60,000.00
Management Co., Ltd houses
DSM NHU Engineering Materials Land use rights and
190,139.67 191,189.91
(Zhejiang) Co., Ltd. houses
Land use rights and
NHU Holding Group Co., Ltd. 16,513.76 27,522.94
houses
The Company being the lessee:
Unit: RMB
Lease expense recognized Lease expense recognized
Name of the lessor Type of the leased assets
during the current period during the previous period
NHU Holding Group Co.,
Land use rights and houses 905,906.40 905,906.40
Ltd.
(3) Related guarantee
The Company being the secured party
Unit: RMB
Guarantor Guarantee Amount Starting date Maturity date Guarantee fulfilled
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
completely or not
500,000,000.00 January 23, 2019 December 21, 2023 No
200,000,000.00 July 31, 2020 July 18, 2022 No
200,000,000.00 July 31, 2020 June 15, 2022 No
NHU Holding Group
300,000,000.00 November 17, 2020 November 16, 2022 No
Co., Ltd.
500,000,000.00 December 03, 2020 September 21, 2025 No
200,000,000.00 January 20, 2021 January 19, 2023 No
100,000,000.00 April 14, 2021 April 12, 2023 No
Subtotal 2,000,000,000.00
(4) Remuneration to key management personnel
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Salary of key management personnel 5,177,598.00 2,982,381.00
(5) Other related-party transactions
(1) The owners of Boao Resort Center apartments entrusted the operation and management of the serviced apartments to Boao
Qionghai Holliyard Hotel Management Co., Ltd
(2) The amount of goods sold by NHU EUROPE GmbH to Customer Three during the current period was RMB 55,983,045.96, and
the balance of accounts receivable at the end of the period was RMB 7,751,954.68
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
Closing Balance Opening Balance
Item Name Related parties Bad Debt
Book Balance Book balance Bad debt provision
Provision
SYNCHEM
INTERNATIONA 28,290,235.23 1,249,559.78 24,564,693.12 1,228,234.66
L CO.,LTD
Accounts DSM NHU
receivable Engineering
Materials 22,299,897.69 1,114,994.89 18,972,791.53 948,639.58
(Zhejiang) Co.,
Ltd.
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Subtotal 50,590,132.92 2,364,554.67 43,537,484.65 2,176,874.24
Zhejiang Deli
Prepayments Equipment Co., 21,549,049.10
Ltd.
Subtotal 21,549,049.10
Zhejiang Chunhui
Environmental
Other Receivables 80,000.00 80,000.00
Protection Energy
Co., Ltd.
Subtotal 80,000.00 80,000.00
Shangyu Shaoxing
Other Non-current
NHU Real Estate 168,339,247.00 101,003,548.00
Assets
Co., Ltd
Subtotal 168,339,247.00 101,003,548.00
(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening Balance
Zhejiang Deli Equipment Co.,
3,085,920.94 7,314,438.78
Ltd.
Zhejiang Chunhui
Environmental Protection 8,159,367.60 7,449,905.70
Energy Co., Ltd.
Zhejiang Saiya Chemical
Accounts Payable 18,782,927.22 115.04
Materials Co., Ltd.
Second Pharma Co.,Ltd. 6,408.00
Suihua NHU Real Estate Co.,
10,374,876.83 10,374,865.03
Ltd
Xinchang County Hechun
777,984.05 1,943,036.80
Greening Co., Ltd
Subtotal 41,187,484.64 27,082,361.35
Zhejiang Deli Equipment Co.,
14,700.89 13,009.64
Ltd.
Contract liabilities
Zhejiang ASEN
1,858.41
Pharmaceutical Co.,Ltd
Subtotal 14,700.89 14,868.05
Other Payables Zhejiang Deli Equipment Co., 663,500.00 3,500.00
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Ltd.
Xinchang County Hechun
480.00
Greening Co., Ltd
Weifang NHU Real Estate
87,148,146.46
Co., Ltd
Subtotal 663,500.00 87,152,126.46
XIII. Commitments and Contingencies
1. Significant commitments
Important commitments on the balance sheet day
1. Forward exchange settlement contracts
According to the "Global Capital Market Transactions" and related transaction application forms signed between the Company
and HSBC Bank (China) Limited Hangzhou Branch, the "Master Agreement on Financial Derivatives Transactions in the China
Interbank Market (2009 Version)" and supplementary agreements signed with DBS Bank (China) Limited Shanghai Branch, and the
"ISDA 2002 MASTER AGREEMENT" signed with Bank of China (Hong Kong) Limited, the details of the Company's undelivered
forward exchange settlement contracts as of June 30, 2021 are as follows:
Currency Nominal amount in USD Nominal amount in Euro Agreed exchange rate Closing date
5,000,000.00 6.4710 2021/7/16
5,000,000.00 6.4660 2021/7/16
5,000,000.00 6.4760 2021/7/26
5,000,000.00 6.4705 2021/7/26
10,000,000.00 6.5390 2021/7/26
4,000,000.00 7.8920 2021/7/26
USD/EUR
7,000,000.00 7.7832 2021/7/26
4,000,000.00 7.7165 2021/8/16
4,000,000.00 7.9142 2021/8/25
4,000,000.00 7.7220 2021/8/25
5,000,000.00 7.9580 2021/10/22
5,000,000.00 7.9580 2021/11/22
Subtotal 30,000,000.00 33,000,000.00
2. Various types of unexpired guarantees issued
As of June 30, 2021, the various types of unexpired guarantees issued by the Company and its subsidiaries are as follows：
Issuing bank Applicant Type of guarantee Amount of guarantee Conditions of issuance
Bank of China Limited Performance guarantee USD128,710.00 Use of bank credit lines
The Company
Xinchang Sub-branch Performance guarantee USD101,540.00 Use of bank credit lines
HSBC Bank (China) Co., The Company Financing guarantee EUR 10,000,000.00 Use of bank credit lines
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Ltd. Hangzhou Branch Financing guarantee EUR 10,000,000.00 Use of bank credit lines
3. Unexpired letters of credit issued
As of June 30, 2021, the unexpired letters of credit issued by the Company and its subsidiaries are as follows:
Issuing bank Applicant Letter of credit balance Conditions of issuance
USD 254,151.00 Use of bank credit lines
USD 45,450.00 Use of bank credit lines
Bank of China Limited
The Company USD 751,426.20 Use of bank credit lines
Xinchang Sub-branch
USD 214,693.20 Use of bank credit lines
USD 1,019,792.70 Use of bank credit lines
China Construction Bank
Corporation Weifang Binhai Shandong Pharmaceutical EUR 2,740,000.00 Use of bank credit lines
Sub-branch
Bank of China Limited
Zhejiang Special Materials JPY 220,000,000.00 Security deposit of JPY 220,000,000.00
Shangyu Sub-branch
Bank of Communications
The Company CNY 100,000,000.00 Security deposit of CNY 10,000,000.00
Shaoxing Xinchang Sub-branch
4. "Note pool" business
The Company and its subsidiary, NHU Import & Export, entered into the "Bank of Communications Yun Tong Account Note
Pooling Service Agreement" with Bank of Communications Co., Ltd., under which the Company pledged and endorsed bank
acceptances to the depositary bank, constituting a pledged note pool; and the Company opens a margin account for the note pool, to
deposit margins as security for the credit granted under the note pledge and to deposit the pledged bank acceptances for payment. The
available credit limit of the Company's pledge is the sum of the pledged notes and the immediate balance of the margin account less
the used pledged notes, and the agreement stipulates that the sum of the pledged notes and the margin account of the Group shall not
be less than the pledged amount used for issuing the notes. The Company and its subsidiaries Shangyu NHU Bio-Chem, Zhejiang
Pharmaceutical, Zhejiang Special Material, Shaoxing Yuchen New Materials, Shandong Pharmaceutical, Shandong Vitamin,
Shandong Amino-acids Acid, Heilongjiang Biotechnology, Shandong Fine Chemical, Heilongjiang Xinhao Thermal Power,
Xinchang Vitamin and Zhejiang Vityesun entered into the "Note Pool Business Cooperation Agreement" with China Zheshang Bank
Co., Ltd., under which the Company pledged the asset pool or the note pool as security and opened a margin account for the note
pool to pay the margin at a certain ratio, with no specific agreement on the amount of the margin. As of June 30, 2021, the balance of
bank acceptance notes pledged by the Company amounted to RMB 440,436,969.40 and the deposit of RMB 196,531,116.11 in the
note pool with China Zheshang Bank Co., Ltd.
XIV. Events after the Balance Sheet Date
As of the date when this Financial Statement was approved for external reporting, the Company had no other material events
after the balance sheet date.
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XV. Other Significant Matters
1. Subsection information
(1) Basis for determining the reporting subsection and the accounting policy
The Company determines the reporting subsection according to the internal organizational structure, management requirements,
and internal reporting system, as well as the industry sections. Assets and liabilities used jointly by the sections are allocated among
the different sub-sections in proportion to their scales.
(2) Financial information of the reporting subsection
Unit: RMB
Pharmaceutical
Item Others Inter-section offset Total
chemicals
Main business revenue 7,130,020,338.49 267,320,671.46 216,751,757.40 7,180,589,252.55
Main business cost 3,705,929,273.76 219,967,294.49 216,751,757.40 3,709,144,810.85
Total assets 31,834,715,605.92 2,413,726,315.89 600,467,111.90 33,647,974,809.91
Total liabilities 12,696,364,683.97 1,260,942,650.95 600,467,111.90 13,356,840,223.02
2. Others
(1) Matters related to the Employee Stock Ownership Plan
On November 11, 2020, the Company held the Second Extraordinary General Assembly of 2020 to deliberate and approve the
proposals related to the Employee Stock Ownership Plan, including the Third Employee Stock Ownership Plan of Zhejiang NHU Co.,
Ltd. (Draft) and its Summary, and approved the implementation of the Third Employee Stock Ownership Plan of the Company. The
self-financing source of the holders of this Employee Stock Ownership Plan is the legal remuneration of the employees of the
Company, self-financing and other means permitted by laws and administrative regulations, with the amount of capital contribution
not exceeding RMB 153 million and the capital allotment not exceeding RMB 153 million (bank borrowing or major shareholder
borrowing) in the ratio of 1:1, for a total amount of funds not exceeding RMB 306 million. The occupancy fee of the major
stockholder borrowing is 6%, and the interest of the corresponding proportion of the principal is returned according to the settlement
time and proportion of the stock ownership plan, but the interest is not charged when the loss or gain of the stock ownership plan is
lower than the fee (including the management fee, transaction fee, interest of the allotment part, etc.). As of February 26, 2021, the
Company's Third Employee Stock Ownership Plan purchased a total of 8,442,935 shares of the Company through secondary market
bidding transactions, accounting for 0.39% of the total share capital of the Company, with a transaction amount of
RMB303,710,918.74 and an average transaction price of approximately RMB35.97 per share, thus completing the purchase of shares
under the Company's Third Employee Stock Ownership Plan.
(2) Purchases of financial products with funds raised
The Company held the 2020 Annual General Assembly on April 21, 2021, at which the "Proposal on the Use of Part of Unused
Funds Raised for Cash Management" was deliberated and approved, agreeing that the Company should use unused funds raised up to
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
RMB3.57 billion (including RMB3.57 billion) for cash management and purchase short-term financial products with high security,
good liquidity and capital protection agreement for a period of not more than 12 months from the date of approval at the 2020 Annual
General Assembly to the 2021 General Assembly, on a rolling basis, provided that the normal operation of the investment projects of
the funds raised is not affected. As of June 30, 2021, the actual balance of financial products and structured deposits purchased by the
Company with temporarily idle funds raised was RMB 3.57 billion.
XVI. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Categorical Disclosure of Accounts Receivable
Unit: RMB
Closing Balance Opening Balance
Book Balance Bad Debt Provision Book balance Bad Debt Provision
Category Book Book
Accrued
Percen Accrued
Amount Percentage Amount Proporti Value Amount Amount Value
tage Proportion
on
Accounts
Receivables with
the Bad Debt 44,416,1 843,906, 741,143, 100.00 37,057,194. 704,086,
888,322,861.11 100.00% 5.00% 5.00%
Provision Accrued 43.06 718.05 885.29 % 26 691.03
Based on
Combinations
44,416,1 843,906, 741,143, 100.00 37,057,194. 704,086,
Total 888,322,861.11 100.00% 5.00% 5.00%
43.06 718.05 885.29 % 26 691.03
Bad debt provision based on combinations
Unit: RMB
Closing Balance
Name
Book balance Bad Debt Provision Accrued proportion
Within 1 Year 888,322,861.11 44,416,143.06 5.00%
Disclosure by age
Unit: RMB
Aging Closing Balance
Within 1 Year (Including 1 Year) 888,322,861.11
Total 888,322,861.11
(2) Provision for Bad Debts Accrued, Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bad Debt
Provision
37,057,194.26 7,358,948.80 44,416,143.06
Based on
Combinations
Total 37,057,194.26 7,358,948.80 44,416,143.06
(3) Accounts Receivable of the Top Five Balances at the End of the Period Collected by Indebted Parties
Unit: RMB
Balance of Accounts As a Percentage of Total
Bad Debt Provision at the
Name of Unit Receivable at the End of the Other Receivables at the End
End of the Period
Period of the Period
Customer 1 482,605,460.05 54.33% 24,130,273.00
Customer 2 88,345,208.00 9.95% 4,417,260.40
Customer 3 71,589,326.08 8.06% 3,579,466.30
Customer 4 44,596,983.78 5.02% 2,229,849.19
Customer 5 24,876,357.06 2.80% 1,243,817.85
Total 712,013,334.97 80.16%
2. Other receivables
Unit: RMB
Item Closing Balance Opening Balance
Dividends Receivable 186,000,000.00
Other Receivables 3,979,535,890.92 4,247,680,763.92
Total 4,165,535,890.92 4,247,680,763.92
(1) Dividends Receivable
1) Classification of Dividends Receivable
Unit: RMB
Project (or Invested Unit) Closing Balance Opening Balance
Shandong Pharmaceutical 186,000,000.00
Total 186,000,000.00
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
(2) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening Balance
Guarantee Deposit 98,597,037.50 98,617,037.50
Export Refunds 6,807,503.13 2,982,236.49
Employee Imprest 3,378,537.00 3,754,737.00
Temporary Payments Receivable 178,933.01
Borrowed Funds 4,075,350,397.87 4,361,194,541.67
Others 758,082.17 472,076.44
Total 4,184,891,557.67 4,467,199,562.11
2) Bad Debt Provision
Unit: RMB
Phase One Phase Two Phase Three
Expected credit losses for
Expected Credit Expected Credit Losses
Bad Debt Provision the entire extension Total
Losses in the Next for the Entire Extension
(without credit
12 Months (with Credit Impairment)
impairment)
Balance on January 1,
218,136,891.03 546,150.58 835,756.58 219,518,798.19
2021
Balance in the Current
Period on January 1, —— —— —— ——
2021
--Transfer to Phase
-88,078.75 88,078.75
Two
--Transfer to Phase
-89,692.30 89,692.30
Three
Provisions in the
-14,189,368.31 -192,222.03 218,458.90 -14,163,131.44
Current Period
Balance on June 30,
203,859,443.97 352,315.00 1,143,907.78 205,355,666.75
2021
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Aging Closing Balance
Within 1 Year (Including 1 Year) 4,083,996,382.60
1 to 2 Years 1,761,574.99
2 to 3 years 448,461.51
3 years or above 98,685,138.57
3 to 4 Years 4,021.95
4 to 5 Years 98,029,884.29
5 Years or above 651,232.33
Total 4,184,891,557.67
3) Provision for Bad debts Accrued, Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bad Debt
Provision
219,518,798.19 -14,163,131.44 205,355,666.75
Based on
Combinations
Total 219,518,798.19 -14,163,131.44 205,355,666.75
4) Other Receivables of the Top Five Closing Balances Collected by Indebted Parties
Unit: RMB
As a Percentage of
Bad debt provision
Nature of the Balance at the Total Other
Name of Unit Aging at the end of the
Funds End of the Period Receivables at the
period
End of the Period
Heilongjiang
Biological Borrowed Funds 1,375,180,313.90 Within 1 Year 32.86% 68,759,015.70
Technology
Shandong
Borrowed Funds 902,126,300.98 Within 1 Year 21.56% 45,106,315.05
Amino-acids
Shandong Jinghua Borrowed Funds 562,274,895.47 Within 1 Year 13.43% 28,113,744.77
Shandong Vitamins Borrowed Funds 488,395,602.76 Within 1 Year 11.67% 24,419,780.14
Zhejiang Special Borrowed Funds 339,684,229.18 Within 1 Year 8.12% 16,984,211.46
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Materials
Total -- 3,667,661,342.29 -- 87.64% 183,383,067.12
3. Long-term equity investment
Unit: RMB
Closing Balance Opening Balance
Item Provision for Provision for
Book Balance Book value Book balance Book value
decline in value decline in value
Investment in
6,833,278,842.12 6,833,278,842.12 6,173,278,842.12 6,173,278,842.12
subsidiaries
Investment in
affiliates and 216,222,623.59 216,222,623.59 199,358,330.80 199,358,330.80
joint ventures
Total 7,049,501,465.71 7,049,501,465.71 6,372,637,172.92 6,372,637,172.92
(1) Investment in Subsidiaries
Unit: RMB
Decrease/Increase in the Current Period
Opening Provision Closing balance
The Invested Closing Balance
Balance (Book Investments Investment for of provision for
Entity Others (Book Value)
Value) Increased Decreased impairment decline in value
accrued
Xinchang
49,407,990.15 100,000,000.00 149,407,990.15
Vitamins
NHU Import &
13,500,000.00 13,500,000.00
Export
Boao Lidu 54,020,492.00 54,020,492.00
Zhejiang VYS 5,000,000.00 5,000,000.00
Shangyu
414,100,091.44 414,100,091.44
Bio-Chem
Shandong
586,000,000.00 586,000,000.00
Pharmaceutical
NHU (Hong
16,406,160.00 16,406,160.00
Kong)
Zhejiang
480,000,000.00 480,000,000.00
Pharmaceutical
Zhejiang 554,844,108.53 554,844,108.53
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Special
Materials
Shandong 2,900,000,000.0 2,900,000,000.0
Amino-acids 0 0
Shandong 586,000,000
786,000,000.00 200,000,000.00
Holding .00
Heilongjiang
1,300,000,000.0
Biological 900,000,000.00 400,000,000.00
0
Technology
Shandong
160,000,000.00 160,000,000.00
Jinghua
6,173,278,842.1 586,000,000 6,833,278,842.1
Total 1,246,000,000.00
2 .00 2
(2) Investment in affiliates and joint ventures
Unit: RMB
Decrease/Increase in the Current Period
Investment
Adjustm Cash Closing
Opening Profit and Provision Closing
Inves ent on Other Dividends balance of
Name of Balance Loss for Balance
Investments tment Other Changes or Profit provision
Investees (book Recognize Impairme Others (Book
Increased Decr Compre in Declared for decline
value) d under the nt Value)
eased hensive Equity to in value
Equity Accrued
Income Distribute
Method
Affiliate
Zhejiang
Chunhui
199,358, 16,864,292 216,222,
Environmental
330.80 .79 623.59
Protection
Energy Co., Ltd.
199,358, 16,864,292 216,222,
Total
330.80 .79 623.59
4. Operating income and operating costs
Unit: RMB
This Period's Amount of Occurrence Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 2,385,252,517.66 1,634,468,165.07 2,235,493,773.37 1,357,878,710.73
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Other Businesses 19,819,223.76 15,301,495.85 9,531,223.70 5,986,597.49
Total 2,405,071,741.42 1,649,769,660.92 2,245,024,997.07 1,363,865,308.22
Information about revenue:
Unit: RMB
Contract Classification Pharmaceutical chemicals Total
Principal Place of Business
Of which: Domestic 1,177,299,548.21 1,177,299,548.21
Overseas 1,227,772,193.21 1,227,772,193.21
Subtotal 2,405,071,741.42 2,405,071,741.42
Main Product Types
Of which: Nutritional products 2,352,864,603.63 2,352,864,603.63
Others 52,207,137.79 52,207,137.79
Subtotal 2,405,071,741.42 2,405,071,741.42
Time of Revenue Recognition
Including: Commodities (Transferred at a Point) 2,405,071,741.42 2,405,071,741.42
Subtotal 2,405,071,741.42 2,405,071,741.42
Information about performance of obligations:
N/A
Information about transaction price allocated to the remaining performance of obligations:
The revenue corresponding to the performance of obligations under the contracts which are signed but are not performed or not
performed completely at the end of this reporting period is RMB 411,632,910.53, in which RMB 411,632,910.53 is estimated to be
recognized as revenue in 2021.
5. Investment income
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Long-term equity investment income
1,289,000,000.00 955,025,000.00
calculated by cost method
Long-term Equity Investment Income
16,864,292.79 7,179,396.25
Measured by Equity Method
Investment Income from Disposal Trading
-3,841,064.35 -9,817,100.00
Financial Assets
Including: Financial Assets at Fair Value
through Profit or Loss in the Current -2,653,997.46
period
Financial Liabilities Measured at Fair -1,187,066.89 -9,817,100.00
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Value with Changes Recorded into Current
Profit and Loss
Interest income from interbank lending 74,902,773.84 89,665,090.28
Income from financial products 22,964,570.95 67,316,825.30
Total 1,399,890,573.23 1,109,369,211.83
XVII. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profit and Loss from Disposal of Non-current Assets 1,065,564.79
The government subsidies included in the current profits and losses (excluding the
government subsidies closely related to regular businesses of the Company and
issued in the quota or quantity based on the national standards) 76,380,676.96
Gains or losses from investment or asset management entrusted to others 29,617,969.78
Profits and losses resulting from the changes in fair value for holding trading
financial assets, derivative financial assets and trading financial liabilities, derivative
financial liabilities and investment income from disposal of trading financial assets,
23,301,029.03
derivative financial assets, trading financial liabilities, derivative financial liabilities,
and other obligatory right investment, excluding the effective hedging businesses
related to the regular business operation of the Company
Non-operating revenue and expenses other than the above 9,566,525.91
Less: Impact of income tax 10,887,288.60
Total 129,044,477.87 --
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information Disclosure for
Companies Offering Their Securities to Public - Non-recurring Gains and Losses, or non-recurring gains and losses items listed in the
said document defined as recurring ones, please specify the reasons.
□ Applicable √ Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit for the reporting period Weighted Average ROE Basic Earnings per Diluted Earnings per
Share (RMB/Share) Share (RMB/Share)
Net profit attributable to common 12.02% 0.93 0.93
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
shareholders of the Company
Net profit attributable to common
shareholders of the Company
11.38% 0.88 0.88
after deducting non-recurring
gains and losses
3. Differences in accounting data between domestic and overseas accounting standards
(1) Differences of net profits and net assets in the financial reports disclosed according to the international
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
(2) Differences of net profits and net assets in the financial reports disclosed according to the overseas
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
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2021 Semi-Annual Report of Zhejiang NHU Company Ltd.
Section XI Documents Available for Reference
1. Financial statements signed and sealed by the Company's legal representative, the person in
charge of finance and accounting work, and the person in charge of accounting department;
2. Originals of all the Company's documents and announcements published on newspapers
designated by the China Securities Regulatory Commission within the reporting period;
3. Other documents for reference.
Zhejiang NHU Company LTD.
Legal Representative: Hu Baifan
200
