2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Zhejiang NHU Company Ltd.
2022 Semi-Annual Report
August 2022
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section I Important Notes, Contents, and Definitions
The Board of Directors and its members, Board of Supervisors and its members,
and senior executives of the Company hereby guarantee that the information
presented in this semi-annual report is authentic, accurate, complete and free of
false records, misleading statements or material omissions, and they will bear
individual and joint liabilities for such information.
胡柏藩 (Hu Baifan), the Company’s legal representative, 石观群 (Shi Guanqun),
the officer in charge of accounting, and 王晓碧 (Wang Xiaobi), the head of
accounting department hereby declare that they guarantee the financial
statements in this semi-annual report are authentic, accurate and complete.
All members of the Board of Directors have attended the meeting of the Board of
Directors for deliberation of this semi-annual report.
The future plan and other forward-looking information disclosed in this semi-
annual report shall not be regarded as a commitment to investors. We kindly
remind investors of all possible risks in investments.
The Company will not distribute cash dividend, distribute bonus shares, or
distribute shares from capital reserve during the current reporting period.
This Semi-Annual Report is an English translation of the Chinese Semi-Annual Report. In case the English version does not
conform to the Chinese version, the Chinese version prevails.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Contents
Section I Important Notes, Contents, and Definitions .................................................................... 1
Section II Company Profile and Key Financial Indicators ............................................................ 5
Section III Management Discussion and Analysis .......................................................................... 9
Section IV Corporate Governance ................................................................................................. 20
Section V Environmental and Social Responsibilities .................................................................. 22
Section VI Significant Events .......................................................................................................... 27
Section VII Movements in Shares and Information about Shareholders ................................... 35
Section VIII Preferred Shares ........................................................................................................ 40
Section IX Bonds .............................................................................................................................. 41
Section X Financial Report ............................................................................................................. 42
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Documents Available for Reference
I. Financial statements signed and sealed by the Company’s legal representative, officer in charge of accounting, and head of
accounting department;
II. Original copy of all the Company's documents and announcements published on the newspapers designated by CSRC within the
reporting period
III. Other documents for reference.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Definitions
Abbreviations Refers to Contents of definitions
The Company, NHU Refers to ZHEJIANG NHU CO., LTD.
CSRC Refers to China Securities Regulatory Commission
PPS Refers to Polyphenylene sulfide
PPA Refers to Poly phthalamide
VOC Refers to Volatile organic compound
NH-acid Refers to Taurine
F5 Refers to Vitamin B5
ARC Refers to Accelerating ratecalori meter
NBC Refers to Azabicycles
CLA Refers to Karon anhydride
SNCR Refers to Selective non-catalytic reduction
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section II Company Profile and Key Financial Indicators
I. Company profile
Stock abbreviation NHU Stock code 002001
Stock Exchange Shenzhen Stock Exchange
Company Name in Chinese 浙江新和成股份有限公司
Company Abbreviation in 新和成
Chinese
Company name in foreign ZHEJIANG NHU CO., LTD.
language (if any)
Company Abbreviation in NHU
foreign language (if any)
Legal representative Hu Baifan
II. Contact information
Items Board secretary Securities affairs representative
Name Shi Guanqun 曾淑颖 (Zeng Shuying)
Contact address No.418 Xinchang Dadao West Road, Xinchang, No.418 Xinchang Dadao West Road, Xinchang,
Zhejiang, P.R.China Zhejiang, P.R.China
Tel. +86 575 86017157 +86 575 86017157
Fax +86 575 86125377 +86 575 86125377
E-mail address sgq@cnhu.com 002001@cnhu.com
III. Other Information
1. Company’s Contact Information
Whether the Company’s registered address, office address, zip code, website and e-mail address has changed during the reporting
period
□ Applicable √ Not applicable
The Company’s registered address, office address, zip code, website and e-mail address have not changed during the reporting period,
which can be found in the 2021 Annual Report.
2. Information Disclosure and Location
Whether information disclosure and location has changed during the reporting period
□ Applicable √ Not applicable
The name of the Company’s selected information disclosure newspaper, the URL of the website designated by the CSRC where the
semi-annual report is posted, and the place where the Company’s semi-annual report is available have not changed during the reporting
period, which can be found in the 2021 Annual Report.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
3. Other relevant Information
Whether other relecant information has changed during the reporting period
□ Applicable √ Not applicable
IV. Key accounting data and financial indicators
Whether the Company needs to perform retroactive adjustment or restatement on financial data of prior years
√ Yes □ No
Reason for retroactive adjustment or restatement
Accounting policy changes and other reasons
Increase/ Decrease at
the end of the current
reporting period
The Same Period of the Previous Year
The Current compared with the same
Items period of the previous
Reporting Period
year
Before adjustment After adjustment[Note2] After adjustment
Operating revenue (yuan) 8,215,039,277.03 7,254,221,638.01 7,340,124,310.11 11.92%
Net profit attributable to
shareholders of listed 2,213,877,419.25 2,408,499,133.50 2,426,979,148.42 -8.78%
company (yuan)
Net profit attributable to
shareholders of listed
company after deducting 2,094,055,949.62 2,279,454,655.63 2,279,438,579.04 -8.13%
non-recurring profit or
loss (yuan)
Net cash flows from
1,242,456,738.20 2,271,157,481.77 2,289,637,496.69 -45.74%
operating activities (yuan)
Basic EPS (yuan/share) 0.72 0.78[Note1] 0.79 -8.86%
Diluted EPS (yuan/share) 0.72 0.78[Note1] 0.79 -8.86%
Decreased by 2.32
Weighted average ROE 9.55% 12.02% 11.87%
percentage points
Increase/Decrease at the
end of the current
Dec. 31, 2021 reporting period
Items Jun. 30, 2022 compared with the end
of the previous year
Before adjustment After adjustment[Note2] After adjustment
Total assets (yuan) 37,815,015,843.65 34,692,165,111.88 34,724,025,476.79 8.90%
Net assets attributable to
shareholders of listed 22,113,966,711.03 21,799,977,645.94 21,831,838,010.85 1.29%
company (yuan)
[Note1] After the implementation of the Company’s 2021 profit distribution plan, its share capital was increased from 2,578,394,760
shares to 3,090,907,356 shares. The above EPS of the comparative period was recalculated based on the adjusted share capital.
[Note2] The company has implemented The Interpretation of Accounting Standards for Business Enterprises No. 15 since January 1,
2022. The interpretation requires that if the company sells the products or by-products produced before the fixed assets reach the
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
expected serviceable state or during the research and development process, the income and cost related to the trial operation sales shall
be accounted for separately and included in the current profit and loss, The net amount of the revenue from trial operation sales after
offsetting the relevant costs shall not be used to offset the cost of fixed assets or R&D expenses. The company makes retroactive
adjustment according to requirements.
V. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
1. Difference in net profit and net assets in financial statements disclosed respectively under IFRS Standards and Chinese
accounting standards
□ Applicable √ Not Applicable
The Company has no difference in net profit or net assets in financial statements disclosed respectively under IFRS Standards and
Chinese accounting standards.
2. Difference in net profit and net assets in financial statements disclosed respectively under overseas accounting standards and
Chinese accounting standards
□ Applicable √ Not Applicable
The Company has no difference in net profit or net assets in financial statements disclosed respectively under overseas accounting
standards and Chinese accounting standards.
VI. Non-recurring profit or loss
√ Applicable □ Not Applicable
Unit: RMB Yuan
Items Amount
Gains or losses on disposal of non-current assets, including
6,674,850.81
write-off of provision for impairment
Government grants included in profit or loss (excluding those
closely related to operating activities of the Company,
satisfying government policies and regulations, and 85,522,179.54
continuously enjoyed with certain quantity or quota based on
certain standards)
Gains or losses on assets consigned to the third party for 28,841,651.61
investment or management
Gains or losses on changes in fair value of held-for-trading
financial assets and held-for-trading financial liabilities, and
investment income from disposal of held-for-trading financial 9,071,898.92
assets and held-for-trading financial liabilities, excluding those
arising from hedging business related to operating activities
Other non-operating revenue or expenditures 797,805.24
Less: Enterprise income tax affected 11,046,849.16
Non-controlling interest affected (after tax) 40,067.33
Total 119,821,469.63
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□ Applicable √ Not Applicable
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.
Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria for
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.
□ Applicable √ Not Applicable
The Company has no situation of defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information
Disclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section III Management Discussion and Analysis
I. The main business of the Company during the reporting period
The Company is a national high-tech company mainly engaged in the production and sales of nutrition, flavor and fragrance, new
polymer materials, and APIs. It focuses on fine chemicals, adheres to the concept of innovation-led development and competition-
driven growth, and continuously develops various functional chemicals based on the two core platforms of chemical and biology,
providing value-added services and solutions to customers in more than 100 countries and regions around the world. It continuously
improves the quality of human life with high-quality, healthy and green products, and creates sustainable value for stakeholders. With
leading technology, scientific management and sincere service, the Company has become one of the four major world vitamin
manufacturers, one of the top 100 national fine chemical companies, one of the top 10 companies in China’s light of industry fragrance
and a well-known special engineering plastics manufacturer.
1. Main products and applications
Nutrition: The Company’s vitamin products, as the main business, have a substantial market share, with a prominent position in the
industry and obvious brand advantages. It is in a leading position in both domestic and overseas markets. Its main products include
vitamin E, vitamin A, vitamin C, methionine, vitamin D3, biotin, coenzyme Q10, carotenoids, etc. They are mainly used in feed
additives and nutrition supplements of food, beverages, health food, etc. The Company actively implements the serialized and
differentiated development of nutrition, and continuously improves the competitiveness of its products by optimizing the processing
line and tackling key issues. In addition, through internal integration and external cooperation, it embraces the ideology of open
cooperation. It actively deploys cutting-edge biotechnology, and builds the Company’s “Bio+” platform.
Flavor and fragrance: At present, the main fragrance products target the global market, in which, the products are competitive, with a
high market share and relatively stable market structure. The main products include linalool, citral, and cis-3-hexenol series, and methyl
dihydrojasmonate, raspberry ketone and ligustral, which are widely used in personal care, cosmetic and food fields. Relying on the two
major technology platforms of chemical synthesis and biological fermentation, the Company continuously enriches the varieties of
fragrance products to meet the changing market demands.
New polymer materials: The Company focuses on the development of high molecular polymers and key intermediates, and
appropriately develops downstream applications of materials according to the principles of integration and serialization. The entire
industry chain of PPS from raw materials to high molecular polymers, then through modifying processing to special fibers has enabled
the Company as the only company in China that can stably produce fiber grade, injection molding grade, extrusion grade and coating
grade PPS. The main products include PPS and PPA. They are mainly used in electronic and electrical, automotive, environmental
protection, etc.
APIs: The main products are concentrated in the series of vitamins and antibiotics. The main products include moxifloxacin
hydrochloride, vitamin A, vitamin D3, etc., which are mainly used as active pharmaceutical ingredients for processing and producing
pharmaceutical preparations.
2. Main business models
(1) Procurement model
The Company has always been adhering to the procurement principle of “fairness, transparency and optimal cost”, and adopts a
combination of long-term strategic cooperation and open competitive procurement, and makes best use of market trend analysis, to
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
ensure the stable supply of the Company’s strategic materials. The Company pays attention to source procurement, and continuously
promotes the removal of intermediate links in the supply chain to reduce procurement costs; the Company implements transparent
procurement, and launches information systems such as procurement platform, supplier and bidding management system, etc. to make
the procurement process more transparent, standardized and efficient, which promotes the healthy development of the supply chain
and reduces costs and increases efficiency for the Company’s operations.
(2) Production model
The Company has always been adhering to the production strategy based on the principle of “production and sales coordination,
efficient operation, excellent quality, and cost leadership”. The Company maintained a balance between production and sales through
analysis of changes in market demands, and reasonable production plans. In addition, the Company keeps innovating the production
model, digging out internal potentials, and optimizing the production process, in order to promote safe, green, standardized and efficient
production, and continuously improve the competitiveness of its products.
(3) Sales model
The Company has always been adhering to the “customer-centric, market-oriented” sales strategy. It divides business lines by product
application fields, and establishes a sales model that suits market needs according to market characteristics and industry practices. Most
of the Company’s sales are achieved through direct sales. By doing so, it establishes long-term and stable strategic cooperative
relationships with end customers to create greater value for them. Meanwhile, it also selects excellent agents or distributors for
distribution. By doing so, it services customers indirectly based on market and customer features.
3. Key performance drivers
The Company has built four modern industrial bases across the country. It adheres to the development strategy of integration,
serialization and synergy, and insists on innovation-driven. Relying on the solid foundation of fine chemical industry, it focuses on
“chemical+” and “biology+” to form NHU featured R&D models with industrial clusters, and technology and industry platforms
interdependent. Not only can its products connect basic chemical raw materials in the upstream, but also extend to special intermediates,
nutrition, flavor and fragrance, new polymer materials, and APIs in the downstream. It has formed a product network structure to resist
risks and respond to market emergencies.
During the reporting period, the company's original products were refined and the construction of new projects, the R&D of new
products were carried out in an orderly manner. In the nutrition sector, the Company’s second phase of methionine 250,000 tons/year
project, of which 100,000-ton equipment was operating smoothly, with comprehensive competition continuously improved. And of
which 150,000-ton equipment was constructed according to schedule and the construction is expected to be completed in June 2023.
5,000 tons / year vitamin B6 and 3,000 tons / year B12 started production and sales, 30,000 tons/year NH-acid project was constructed
under schedule. In the Flavor and fragrance sector, the project with an annual output of 5,000 tons of menthol was constructed according
to the schedule, and the project progress was controllable. In the new polymer materials sector, the commissioning of the phase III PPS
project with an annual output of 7,000 tons was progressing smoothly; The adiponitrile project was in the pilot test stage, and the
project approval process was advancing in an orderly manner. In the API sector, the 500 tons/year azabicyclo project was commissioned
and the products was sold. Now the process route has been opened and the process is in the process of continuous improvement. In the
future, the API product structure will be adjusted, transformed and upgraded, the specific project is in the process of approval.
During the reporting period, in the face of the raging Covid-19 epidemic and the more complex international economic situation, the
Company coordinated the epidemic control and business development, actively responded to market changes, adjusted sales strategies,
strengthened supply chain scheduling, reasonably arranged production plans to ensure its product supply, and strive to create value for
customers and the society, and achieved good business performance.
During the reporting period, the business of flavor and fragrance, new polymer materials developed steadily. The sales volume of
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
methionine increased, the product price was stable, and the cost advantage was provided. The sales price and sales volume of main
vitamin products decreased compared with the same period of the previous year. At the same time, affected by the domestic epidemic
and the global political and economic environment, some raw materials’ price has increased, resulting in an increase in product costs.
During the reporting period, the company realized an operating revenue of 8.22bn, with an increase of 11.92% over the same period of
the previous year; The total profit was 2.62bn, with a decrease of 7.28% over the same period of the previous year; The net profit
attributable to the shareholders of the listed company was 2.21bn, with a decrease of 8.78% over the same period of the previous year.
Overall, in the first half of 2022, the company maintained a stable operating state, and the company's performance conformed to the
development law of the industry.
During the reporting period, the Company’s main business and its business model remained unchanged.
II. Core competitiveness analysis
During the reporting period, the Company’s core competitiveness remained unchanged, please refer to 2021 Annual Report of Zhejiang
NHU Co., Ltd. for details.
III. Main Business Analysis
Overview
Refer to “I. The Main Business of the Company during the Reporting Period”
Year-on-year changes in key financial data
Unit: RMB Yuan
The Current The Same Period of YoY growth
Item Reasons for Changes
Reporting Period the Previous Year rate
It was mainly due to the business growth of
Operating revenue 8,215,039,277.03 7,340,124,310.11 11.92% flavor and fragrance, and new polymer
materials during the reporting period.
It was mainly due to the increase in the price
Operating Cost 4,945,122,803.39 3,822,747,702.20 29.36% of main raw materials during the reporting
period.
It was mainly due to the increase in salary
Sales Expenses 57,277,897.48 55,479,574.90 3.24%
during the reporting period.
Administration It was mainly due to the increase in salary
212,284,822.41 187,505,914.10 13.22% during the reporting period.
Expenses
It was mainly due to exchange gains arising
Financial Expenses 22,231,053.96 144,530,139.09 -84.62% from exchange rate fluctuations during the
reporting period.
Income Tax It was mainly due to the increase of deferred
400,099,923.62 394,709,861.22 1.37%
Expense income tax expense.
It was mainly due to the increase of material
R&D Expense 440,357,252.64 351,532,764.55 25.27% inputs and salary during the reporting
period.
Net Cash Flows It was mainly due to the increase in the
from Operating 1,242,456,738.20 2,289,637,496.69 -45.74% purchase amount of raw materials during
Activities the reporting period.
Net Cash Flows It was mainly due to the impact of the
from Investing -1,073,929,985.26 -1,084,929,925.41 1.01% decrease in the purchase of financial
Activities products during the reporting period.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
The Current The Same Period of YoY growth
Item Reasons for Changes
Reporting Period the Previous Year rate
Net Cash Flows
It was mainly due to the large amount of due
from Financing 574,156,254.26 351,773,744.86 63.22%
loans repaid in the same period of last year.
Activities
Net Increase in Cash It was mainly due to the increase in the
and Cash 737,171,030.93 1,512,856,721.48 -51.27% purchase amount of raw materials during
Equivalents the reporting period.
Significant changes in the composition of the Company’s profit or sources of profit during the reporting period
□ Applicable √ Not applicable
No significant changes in the composition of the Company’s profit or sources of profit during the reporting period.
Operating Income Structure
Unit: RMB Yuan
The Current Reporting Period The Same Period of the Previous Year
Items YoY growth rate
Amount % to total Amount % to total
Total 8,215,039,277.03 100% 7,340,124,310.11 100% 11.92%
By industry
Pharmaceutical
7,585,238,197.37 92.33% 6,844,674,505.10 93.25% 10.82%
chemicals
Others 629,801,079.66 7.67% 495,449,805.01 6.75% 27.12%
By product
Nutrition 5,768,862,111.12 70.22% 5,503,992,723.67 74.98% 4.81%
Flavor and fragrance 1,522,994,415.83 18.54% 1,161,042,438.38 15.82% 31.17%
New polymer
552,514,423.91 6.73% 418,367,560.13 5.70% 32.06%
materials
Others 370,668,326.17 4.51% 256,721,587.93 3.50% 44.39%
By region
Domestic sales 4,064,052,343.93 49.47% 3,381,461,901.23 46.07% 20.19%
Overseas sales 4,150,986,933.10 50.53% 3,958,662,408.88 53.93% 4.86%
By sales model
Direct sales 6,536,368,733.62 79.57% 5,750,096,413.40 78.34% 13.67%
Agent sales 1,678,670,543.41 20.43% 1,590,027,896.71 21.66% 5.57%
Industry, product, or regions accounting for more than 10% of the Company’s operating revenue or profit
√ Applicable □ Not applicable
Unit: RMB Yuan
Growth rate of
Items Operating revenue Operating cost Gross rate Growth rate of Growth rate of
operating
operating cost gross rate
revenue
By industry
Pharmaceutical Decreased by 7.96
7,585,238,197.37 4,435,652,768.85 41.52% 10.82% 28.29%
chemicals percentage points
By product
Decreased by11.17
Nutrition 5,768,862,111.12 3,430,472,272.00 40.53% 4.81% 29.06% percentage points
Flavor and Increased by 5.65
fragrance 1,522,994,415.83 764,130,371.15 49.83% 31.17% 17.91% percentage points
By region
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Growth rate of
Items Operating revenue Operating cost Gross rate Growth rate of Growth rate of
operating
operating cost gross rate
revenue
Domestic sales Decreased by 9.26
4,064,052,343.93 2,739,229,159.94 32.60% 20.19% 39.34%
percentage points
Overseas sales Decreased by 6.24
4,150,986,933.10 2,205,893,643.45 46.86% 4.86% 18.80%
percentage points
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 Product: Compared with the corresponding period of last year, the operating revenue of flavor and fragrance is increased by
31.17%, mainly due to the joint influence of the price rise and sales volume increase of such products.
② By Region: Compared with the corresponding period of last year, the operating cost of domestic sales is increased by 39.34%,
mainly due to the increase in sales volume of nutrition products and the increase in freight costs.
IV. Non-main business analysis
√ Applicable □ Not Applicable
Unit: RMB Yuan
% to total
Items Amount profit before Reason for balance Whether has continuity
tax
It was mainly due to gains on financial products
Investment income 51,479,744.19 1.96% and profit generated by the associates during the No
reporting period.
It was mainly due to changes in fair value of
Gains on changes in No
11,836,700.04 0.45% forward foreign exchange settlement during the
fair value
reporting period.
Credit impairment It was mainly due to bad debts accrued in No
-10,613,626.22 -0.40%
loss(or less: losses) accounts receivable.
It was mainly due to losses arising from
Assets impairment No
-7,890,179.58 -0.30% provision for impairment made on each asset in
loss(or less: losses)
accordance with assets impairment principles.
Non-operating No
2,024,074.84 0.08% It was mainly due to indemnity income.
revenue
Non-operating It was mainly due to donation expenditures No
2,330,316.96 0.09%
expenditures during the reporting period.
Gains on asset No
6,674,850.81 0.25% It was mainly due to disposal of fixed assets.
disposal
Other income It was mainly due to government grants No
86,626,226.90 3.30%
received during the reporting period.
V. Assets and liabilities analysis
1. Significant changes in asset composition
Unit: RMB Yuan
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Jun. 30, 2022 Dec. 31, 2021
Items Percentage of Remarks on
Amount % to total Amount % to total change significant changes
Cash and bank Increased by 0.29
6,590,012,908.26 17.43% 5,952,909,626.94 17.14%
balances percentage points
Accounts Increased by 0.17
3,061,875,600.52 8.10% 2,755,168,573.14 7.93%
receivable percentage points
Inventories Increased by 2.86
4,562,173,216.89 12.06% 3,193,657,367.16 9.20%
percentage points
Long-term equity There is no
383,722,022.14 1.01% 351,327,625.75 1.01%
investments change.
Decreased by
Fixed assets 14,895,938,812.24 39.39% 14,350,779,852.73 41.33% 1.94 percentage
points
Construction in Increased by 1.60
3,855,244,085.78 10.20% 2,984,835,072.82 8.60%
progress percentage points
Right-of-use There is no
3,055,722.33 0.01% 3,123,637.11 0.01%
assets change.
Short-term Increased by 2.93
2,633,945,563.46 6.97% 1,403,332,827.92 4.04%
borrowings percentage points
Increased by
Contract
82,505,836.42 0.22% 61,135,258.36 0.18% 0.04 percentage
liabilities
points
Decreased by
Long-term
5,070,255,993.98 13.41% 5,148,811,786.49 14.83% 1.42 percentage
borrowings
points
Lease liabilities There is no
2,845,348.72 0.01% 2,936,868.15 0.01%
change.
2. Major overseas assets
□ Applicable √ Not applicable
3. Assets and liabilities at fair value
√ Applicable □ Not Applicable
Unit: RMB Yuan
Accumulate Amount
Provision for Amount sold
Opening Gains on d changes in purchased
Items impairment during the Other Closing balance
changes in fair value during the
balance made in the reporting changes
fair value included in reporting
current period period
equity period
Financial assets
1. Held-for-
trading financial
assets 1,250,000,000 660,000,000.0 1,250,000,000
660,000,000.00
(derivative .00 0 .00
financial assets
excluded)
2. Derivative
736,359.24 8,819,105.53 9,555,464.77
financial assets
Subtotal of 1,250,736,359 660,000,000.0 1,250,000,000
8,819,105.53 0.00 0.00 0.00 669,555,464.77
financial assets .24 0 .00
Total 1,250,736,359 660,000,000.0 1,250,000,000
8,819,105.53 0.00 0.00 0.00 669,555,464.77
.24 0 .00
Financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
liabilities
Whether the Company has significant changes in measurement attributes of main assets during the reporting period
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
□ Yes √ No
4. Restrictions on assets as of the end of the reporting period
(1) Closing of cash and bank balances included deposits of 138,304,339.10 yuan pledged and not on demand for payments, which
was with use restrictions.
(2) Closing balance of receivables financing included 130,363,316.90 yuan pledged for bank acceptance and not on demand for
payments, which was with use restrictions.
(3) Closing balance of notes receivable included 209,801,476.61 yuan pledged for bank acceptance and not on demand for payment,
which was with use restrictions.
(4) Closing carrying amount of fixed assets included 76,487,526.23 yuan mortgaged to the bank for borrowings, which was with use
restrictions.
(5) Closing carrying amount of intangible assets included 9,186,528.93 yuan mortgaged to the bank for borrowings, which was with
use restrictions.
VI. Investment status analysis
1. Overall information
√ Applicable □ Not Applicable
Investments during the reporting period (yuan) Investments of the preceding period (yuan) Percentage of change
1,832,296,131.71 1,118,444,545.53 63.83%
2. Significant equity investments made during the reporting period
□ Applicable √ Not Applicable
3. Significant non-equity investments in progress during the reporting period
□ Applicable √ Not Applicable
4. Investments in financial assets
(1) investments in securities
□ Applicable √ Not Applicable
There is no investment in securities during the reporting period.
(2) Investments in derivatives
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
15
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Proport Profit or
Whether Categorie Amount Amount
Provision ion of loss
Counterpar Related related s of Date of purchased sold during
Initial Date of Opening for Closing investm during
party party derivative commence during the the
ty investments termination balance impairme balance ents to the
relationship transactio investme ment reporting reporting
nt (if any) net reporting
n nts period period
assets period
Non-
Forward 12/09/202 15,949.5 340,098.0 234,899.3
Bank related No 362,525.17 12/28/2022 121,148.30 5.48% 781.28
contracts 1 5 7 2
party
Structur
Non-
ed 11/19/202 13,400.0
Bank related No 56,347.80 12/23/2022 30,077.30 12,702.00 30,775.30 1.39% 125.91
forward 1 0
party
contracts
Total 418,872.97 -- -- 29,349.5 370,175.3 247,601.3
151,923.60 6.87% 907.19
5 7 2
Fund source Self-owned fund
Conditions of involved lawsuits (if
None
applicable)
Disclosure date of the Board of Directors
announcement for the approval of April 15, 2022
derivatives investment (if any)
Disclosure date of the general meeting of
shareholders announcement for the Not Applicable
approval of derivatives investment (if any)
Remarks on risk analysis and control
measures for holding derivative positions
In order to prevent exchange rate risks, the Company and its subsidiaries carried out derivative instrument
during the reporting period (including but
businesses. The Company and its subsidiaries strictly implemented the Management Measures on Foreign
not limited to market risk, liquidity risk,
Exchange Hedging Business.
credit risk, operational risk, legal risk,
etc.)
In the case of changes in market prices or
fair value of invested derivatives during
the reporting period, the analysis on fair Floating income from changes in fair value of the invested derivatives amounted to 37.86 million yuan at the
value of derivatives shall disclose the beginning of the reporting period; floating income from changes in fair value of the invested derivatives
specific methods for their uses, and the amounted to 11.84 million yuan at the end of the reporting period.
setting of relevant assumptions and
parameters
Remarks on whether there were
significant changes in the accounting
policies and specific accounting principles Not Applicable
for the Company’s derivatives during the
reporting period compared to the previous
reporting period
The Company has formulated the Management Measures on Foreign Exchange Hedging Business to strengthen
internal control, implement risk prevention measures, improve the level of operation and management, and
formulate specific operating procedures for foreign exchange hedging business. The Company has performed
Special opinions of independent directors analysis on the feasibility of carrying out foreign exchange hedging business, which indicated that in general, it
on the Company’s derivatives investment is feasible to carry out foreign exchange hedging, for it can effectively reduce the risk of exchange rate
and risk control fluctuations, and help stabilize the profit level. The contents of and review procedures for the event comply with
relevant laws, regulations, normative documents, the Articles of Association, etc., and would not damage the
interests of the Company and other shareholders. We all agree that the Company shall carry out foreign exchange
hedging business this time.
5. Use of raised funds
√ Applicable □ Not Applicable
(1) Overall use of raised funds
√ Applicable □ Not Applicable
16
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Unit: RMB 0,000 yuan
Accumulat
Total
ed amount Proportion Purposes
raised
of raised of raised of raised
Amount Accumulat funds with Total
Way of Total funds with funds with funds not Raised funds being
Year of fund-raising used in the ed amount changes in raised
fund- amount changes in changes in yet used idle for over two
current of raised uses funds not
raising raised uses uses to and the years
period funds used during the yet used
during the total raised whereabou
reporting
reporting funds ts
period
period
Deposited
in special
accounts
for raised
funds,
used to
Private
Year 2017 purchase 0
placement 486,707.55 69,281.63 278,026.26 0 0 0.00% 208,681.29
bank
of shares
financial
products,
deposited
as
structured
deposits
Total -- 486,707.55 69,281.63 278,026.26 0 0 0.00% 208,681.29 -- 0
Remarks on overall use of raised funds
The Company’s raised funds used in previous years amounted to 2,087.45 million yuan, the net amount of interest on cash in bank received in previous
years less handling charges amounted to 51.75 million yuan, gains on financial products and structured deposits received in previous years amounted to
574.66 million yuan, and the net expenditure on financial products and structured deposits purchased in previous years amounted to 2,450.00 million
yuan; the raised funds actually used in the first half of 2022 amounted to 692.82 million yuan, the net amount of interest on cash in bank received in the
first half of 2022 less handling charges amounted to 11.30 million yuan, gains on financial products and structured deposits received in the first half of
2022 amounted to 41.36 million yuan, and the net recovery from financial products and structured deposits purchased in the first half of 2022 amounted
to 1,530.00 million yuan; the accumulated amount of the raised funds used amounted to 2,780.26 million yuan, the accumulated net amount of interest on
cash in bank received less handling charges amounted to 63.05 million yuan, the accumulated amount of gains on financial products and structured
deposits received amounted to 616.01 million yuan, and net expenditure on financial products and structured deposits purchased amounted to 920.00
million yuan. As of June 30, 2022, the balance of the special account for raised funds amounted to 1,845.88 million yuan (including the net amount of
interest on cash in bank less handling charges, gains on financial products and structured deposits received on an accumulated basis).
(2) Committed projects with raised funds
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
Whether
Whether Total Total Investment Date of Benefit Whether
Input Accumulated there was
Committed investment changed committed amount progress as reaching realized in the
during the input as of the significant
projects and over-raised (including investment after of the designed the expected
reporting period end changes in
funds whereabouts partial in raised adjustment period end usable reporting benefit is
period (2) feasibility of
changed) funds (1) (3)=(2)/(1) conditions period reached
the project
Committed investment projects
Partially
Methionine project with reached the
annual output of 0.25 No 486,707.55 486,707.55 69,281.63 278,026.26 57.12% designed 35,194.89 Yes No
million tons usable
conditions
Subtotal -- 486,707.55 486,707.55 69,281.63 278,026.26 -- -- 35,194.89 -- --
Over-raised funds whereabouts
No
Total -- 486,707.55 486,707.55 69,281.63 278,026.26 -- -- 35,194.89 -- --
Pursuant to the results deliberated and approved by the eighth meeting of the eighth session of Board of Directors and the seventh
Conditions of and reasons
meeting of the eighth session of the Board of Supervisors dated October 27, 2021, the Company intended to adjust the date when the
for not meeting the planned
methionine project with annual output of 0.25 million tons reaches the designed usable conditions from the originally planned
schedule or estimated
December 2021 to June 2023, with other contents remaining unchanged. Main reasons: Due to the impact of the COVID-19 and the
revenue (by specific
macro economy, the construction progress of the project’s infrastructure has been delayed, the procurement and delivery time of some
project)
equipment and materials has been extended, the installation and commissioning of equipment has been delayed, and the overall
17
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
progress of the investment projects with raised funds has slowed down, which jointly resulted in the postponement of delivery of the
projects. Currently, the 100,000-ton production line of the project has been completed and is in normal operation, and the 150,000-
ton production line is under construction.
Remarks on significant
changes in feasibility of None.
projects
Amount, purposes and
progress of use of over- Not Applicable
raised funds
Changes in implementation
locations of investment Not Applicable
projects with raised funds
Adjustment on the
implementation method of Not Applicable
investment projects with
raised funds
Preliminary investment and Applicable
replacement of investment
Preliminary investment amounted to 36.06 million yuan, and the replacement of raised funds is completed.
projects with raised funds
Temporary replenishment
of working capital with idle Not Applicable
raised funds
Amount of and reasons for
the balance of raised funds Not Applicable
in the implementation of
projects
Uses and whereabouts of Deposited in special accounts for raised funds, used to purchase bank financial products, deposited as structured deposits
unused raised funds
Problems or other situations
in the use and disclosure of None.
raised funds
(3) Change of projects with raised funds
□ Applicable √ Not Applicable
There is no change of projects with raised funds during the reporting period.
VII. Sale of major assets and equities
1. Sale of major assets
□ Applicable √ Not Applicable
There is no sale of major assets during the reporting period.
2. Significant sale of equities
□ Applicable √ Not Applicable
VIII. Major entities controlled or invested by the Company
√ Applicable □ Not Applicable
Major subsidiaries and investees with influence on net profit of the Company over 10% (inclusive)
Unit: RMB Yuan
Entities Categories Major Registere Total assets Net assets Operating revenue Operating profit Net profit
businesses d capital
山东新和成药业
Production 586
有限公司 Subsidiary and sales of million 3,764,384,291.53 3,122,293,885.52 1,795,208,550.81 674,635,047.60 579,387,483.37
(Shandong NHU fragrances yuan
Pharmaceutical
18
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Entities Categories Major Registere Total assets Net assets Operating revenue Operating profit Net profit
businesses d capital
Co., Ltd.*)
山东新和成氨基
酸有限公司 Production 930
(Shandong NHU Subsidiary and sales of million 6,370,967,608.24 5,277,619,767.93 1,820,189,293.19 619,774,650.89 528,677,676.98
Amino-acids Co., methionine yuan
Ltd.*)
山东新和成维生
Production
素有限公司 and sales of
500
(Shandong NHU Subsidiary feed million 3,590,584,985.65 2,466,436,986.11 1,195,430,349.69 546,299,798.06 474,304,150.35
Vitamins Co., yuan
additives
Ltd.*)
上虞新和成生物
Production
化工有限公司
(Shangyu NHU Subsidiary and sales of 50 million 4,925,737,910.91 3,664,072,222.94 771,030,608.61 299,904,474.20 263,309,156.89
feed yuan
Bio-Chem Co., additives
Ltd.*)
Details of acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not Applicable
Subsidiaries Method for acquisition and disposal of Effect on the overall production, operation
subsidiaries during the reporting period and performance
NHU/Chr.Olesen Latin America A/S[Note] Acquisition No significant effect at the beginning of the
period.
[Note] NHU/CHR.OLESEN LATIN AMERICA A/S holds two subsidiaries, respectively NHU/CHR.OLESEN BRASIL LTDA.，
holding 100%, and CHR.OLESEN MEXICO SAPI DE CV, holding 88%.
IX. Structured entities controlled by the Company
□ Applicable √ Not Applicable
X. Risks and countermeasures
During the reporting period, the Company’s risks and countermeasures remained unchanged, please refer to 2021 Annual Report of
Zhejiang NHU Co., Ltd. for details.
* The English names are for identification purpose only.
19
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section IV Corporate Governance
I. Annual general meeting and extraordinary general meetings held during the reporting period
1. General meeting of shareholders
Proportion of
Session Type of meetings participating Meeting date Disclosure date Resolutions
investors
11 proposals including the
Annual Work Report of the
Board of Directors of 2021
General meeting of Annual general meeting 52..50% May 10, 2022 May 11, 2022 were deliberated and approved.
shareholders of 2021 of shareholders Please refer to Announcement
No. 2022-029 disclosed on
http://www.cninfo.com.cn for
details.
2. Preference shareholders with restored voting rights request to convene an extraordinary general meeting
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Position Type Date Reasons
Leave office upon
郑根土 Expiration of
Vice President expiration of term of Jan 31, 2022
(Zheng Gentu) employment
office
III. Profit distribution and conversion of capital reserve into share capital
□ Applicable √ Not applicable
The Company will not distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve during the current
reporting period.
IV. Implementation of equity incentive plans, employee stock ownership plans or other
employee incentive programs
√ Applicable □ Not applicable
1. Equity incentive
Not applicable.
2. Implementation of employee stock ownership plans
√ Applicable □ Not applicable
All active employee stock ownership plans during the reporting period
Proportion to total
Scope of Number of Changes Sources of fund to
Total shares held share capital of the
employees employees implement the plan
Company
Directors, Legal
supervisors, senior remuneration of
executives of the 681 12,157,826 N/A 0.39% the employees,
Company, and self-raised funds
regular employees and other methods
20
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Proportion to total
Scope of Number of Changes Sources of fund to
Total shares held share capital of the
employees employees implement the plan
Company
of the Company permitted by laws
and its holding and administrative
subsidiaries or regulations
wholly-owned
subsidiaries who
meet the criteria
Shareholdings of directors, supervisors and senior executives in the employee stock ownership plan during the reporting period
Number of shares held Number of shares held Proportion to total
Name Position at the beginning of the at the end of the share capital of the
reporting period reporting period Company
Hu Baishan, Shi
Guanqun, Wang
Xuewen, Wang
Zhengjiang, Zhou
Guiyang, Yu Baijin, Directors, supervisors
1,334,431 1,601,317 0.05%
Shi Fangbin, Lyu and senior executives
Guofeng, Yu Hongwei,
Yan Hongyue, Chen
Zhaofeng, Zheng
Gentu
Changes in asset management agency during the reporting period
□ Applicable √ Not applicable
Changes in equity during the reporting period due to disposal of shares by holders, etc.
□ Applicable √ Not applicable
3、Other remarks
1. On May 25, 2022, the Company implemented the Annual Equity Distribution of 2021, and the shares held by the third phase of
employee stock ownership plan were transferred from 10,131,522 shares to 12,157,826 shares after the transfer, with the proportion to
total share capital of the Company unchanged.
2. The number of shares held by directors, supervisors and senior executives in the employee stock ownership plan is measured based
on the proportion of shares of holders to the total shares of the employee stock ownership plan.
4. Other employee incentive programs
□ Applicable √ Not applicable
21
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section V Environmental and Social Responsibilities
I. Major environmental issues
Whether the Company and its subsidiaries belong to the key pollutant discharging units announced by departments of environmental
protection administration
√ Yes □ No
Name of main Total Excess
Distributio Executive Total
pollutants and Number of amount ive
Name Discharge n of Discharge pollutant verified
pollutant discharge of discha
method discharge concentration discharge amount of
characteristics outlets discharg rge or
1 outlets standard discharge
e not
Sewer
The Company COD 1 Plant area 153mg/L 500mg/L 12.56t ≤189.5t/a No
connection
Sewer
The Company NH3-N 1 Plant area 6.6mg/L 35mg/L 0.1t ≤13.28t/a No
connection
Filtered
The Company SO 1 Plant area 19mg/m 50mg/m 0.55t ≤8.612t/a No
discharge
Filtered
The Company NOx 1 Plant area 38mg/m 50mg/m 0.4t ≤28t/a No
discharge
Shangyu NHU Bio-Chem Sewer
COD 1 Plant area 288.144mg/L 500mg/L 144.596t ≤447.4t/a No
Co., Ltd. connection
Shangyu NHU Bio-Chem Sewer
NH3-N 1 Plant area 13.958mg/L 35mg/L 7.004t ≤31.318t/a No
Co., Ltd. connection
Shangyu NHU Bio-Chem Sewer
TN 1 Plant area 24.389mg/L 70mg/L 12.239t ≤62.637t/a No
Co., Ltd. connection
Shangyu NHU Bio-Chem Filtered
NOx 1 Plant area 8.557mg/m 200mg/m 1.501t ≤12.96t/a No
Co., Ltd. discharge
Shangyu NHU Bio-Chem Filtered
VOC 1 Plant area 4.615mg/m 100mg/m 0.883t ≤217.182t/a No
Co., Ltd. discharge
浙江新和成药业有限公司 Sewer
(Zhejiang NHU Pharmaceutical COD 1 Plant area 288.144mg/L 500mg/L 94.612t ≤292.37t/a No
Co., Ltd.2) connection
Zhejiang NHU Pharmaceutical Sewer
Co., Ltd. NH3-N 1 Plant area 13.958mg/L 35mg/L 4.583t ≤20.467t/a No
connection
Zhejiang NHU Pharmaceutical Sewer
Co., Ltd. TN 1 Plant area 24.389mg/L 70mg/L 8.008t ≤40.932t/a No
connection
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. VOC 2 Plant area 3.028mg/m 100mg/m 0.538t ≤167.91t/a No
discharge
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. NOx 1 Plant area 3.61mg/m 200mg/m 0.256t ≤8.64t/a No
discharge
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. NOx 1 Plant area 87.865mg/m 300mg/m 20.49t ≤28.08t/a No
discharge
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. NOx 1 Plant area 3mg/m 50mg/m 1.575t ≤65.85t/a No
discharge
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. SO 1 Plant area 3.521mg/m 50mg/m 0.804t ≤37.94t/a No
discharge
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. SO 1 Plant area 3mg/m 200mg/m 0.394t ≤91.42t/a No
discharge
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. PM 1 Plant area 3.034mg/m 15mg/m 0.207t ≤0.304t/a No
discharge
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. PM 1 Plant area 3.988mg/m 30mg/m 0.914t ≤8.42t/a No
discharge
Zhejiang NHU Pharmaceutical Filtered
Co., Ltd. PM 1 Plant area 3.33mg/m 20mg/m 0.194t ≤77.597t/a No
discharge
Zhejiang NHU Special Filtered
PM 2 Plant area 2.7mg/m 5mg/m 0.7644t ≤17.73t/a No
Materials Co., Ltd. discharge
1 COD, NH3-N, SO , NOx, TN, VOC, PM and TP stand for chemical oxygen demand, ammonia nitrogen, sulfur dioxide, nitrogen
oxides, total nitrogen, volatile organic compound, particulate matter and total phosphorus, respectively.
2 The English name is for identification purpose only.
22
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Name of main Total Excess
Distributio Executive Total
pollutants and Number of amount ive
Discharge n of Discharge pollutant verified
Name pollutant discharge of discha
method discharge concentration discharge amount of
characteristics outlets discharg rge or
3 outlets standard discharge
e not
Zhejiang NHU Special Filtered
SO 2 Plant area 5.8mg/m 35mg/m 1.8240t ≤67.92t/a No
Materials Co., Ltd. discharge
Zhejiang NHU Special Filtered
NOx 2 Plant area 14.8mg/m 50mg/m 2.6464t ≤83.28t/a No
Materials Co., Ltd. discharge
Zhejiang NHU Special Filtered
VOC 2 Plant area 16.1mg/m 60mg/m 1.8868t ≤69.72t/a No
Materials Co., Ltd. discharge
Zhejiang NHU Special Sewer
COD 1 Plant area 289mg/L 500mg/L 58.583t ≤182.1t/a No
Materials Co., Ltd. connection
Zhejiang NHU Special Sewer
NH3-N 1 Plant area 14mg/L 35mg/L 2.788t ≤12.747t/a No
Materials Co., Ltd. connection
Zhejiang NHU Special Sewer
TN 1 Plant area 30mg/L 70mg/L 6.156t ≤25.494t/a No
Materials Co., Ltd. connection
Shandong NHU Filtered
PM 5 Plant area 2.96mg/m 10mg/m 0.816t ≤5.761t/a No
Pharmaceutical Co., Ltd. discharge
Shandong NHU Filtered
SO 4 Plant area 2.7mg/m 50mg/m 0.210t ≤4.006t/a No
Pharmaceutical Co., Ltd. discharge
Shandong NHU Filtered
NOx 5 Plant area 31.4mg/m 100mg/m 13.28t ≤75.513t/a No
Pharmaceutical Co., Ltd. discharge
Shandong NHU Filtered
VOC 3 Plant area 28.9mg/m 60mg/m 2.388t ≤28.481t/a No
Pharmaceutical Co., Ltd. discharge
Shandong NHU Sewer
COD 1 Plant area 523mg/L 1000mg/L 127t ≤598.22t/a No
Pharmaceutical Co., Ltd. connection
Shandong NHU Sewer
NH3-N 1 Plant area 16.6mg/L 100mg/L 4.12t ≤59.82t/a No
Pharmaceutical Co., Ltd. connection
Shandong NHU Sewer
TN 1 Plant area 42.8mg/L 120mg/L 10.4t ≤65.64t/a No
Pharmaceutical Co., Ltd. connection
山东新和成药业有限公司热
电分公司 (Thermal Power Filtered
PM 1 Plant area 1.48mg/m 5mg/m 1.79t ≤10.51t/a No
Branch of Shandong NHU discharge
Pharmaceutical Co., Ltd.)
Thermal Power Branch of
Filtered
Shandong NHU SO 1 Plant area 19.9mg/m 35mg/m 22.4t ≤73.61t/a No
Pharmaceutical Co., Ltd. discharge
Thermal Power Branch of
Filtered
Shandong NHU NOx 1 Plant area 25.6mg/m 50mg/m 32.8t ≤105.16t/a No
Pharmaceutical Co., Ltd. discharge
Shandong NHU Amino- Filtered
SO 4 Plant area 7.41mg/m 50mg/m 4.8377t ≤92.59t/a No
acids Co., Ltd. discharge
Shandong NHU Amino- Filtered
NOx 3 Plant area 57.4mg/m 100mg/m51.8716t ≤230.77t/a No
acids Co., Ltd. discharge
Shandong NHU Amino- Filtered
PM 5 Plant area 1.28mg/m 10mg/m 1.4628t ≤21.19t/a No
acids Co., Ltd. discharge
Shandong NHU Amino- Filtered
VOC 4 Plant area 2.94mg/m 60mg/m 15.9256t ≤123.27t/a No
acids Co., Ltd. discharge
Shandong NHU Amino- Sewer
COD 1 Plant area 352mg/L 1000mg/L 69.71t ≤592.22t/a No
acids Co., Ltd. connection
Shandong NHU Amino- Sewer
NH3-N 1 Plant area 2.1mg/L 100mg/L 0.4191t ≤59.222t/a No
acids Co., Ltd. connection
Shandong NHU Amino- Sewer
TN 1 Plant area 46.2mg/L 120mg/L 9.28t ≤70.38t/a No
acids Co., Ltd. connection
Shandong NHU Vitamins Filtered
VOC 4 Plant area 10mg/m 60mg/m 0.96t ≤173.53t/a No
Co., Ltd. discharge
Shandong NHU Vitamins Filtered
SO 2 Plant area 13mg/m 50mg/m 1.951t ≤63.24t/a No
Co., Ltd. discharge
Shandong NHU Vitamins Filtered
NOx 4 Plant area 45mg/m 100mg/m 18.355t ≤107.53t/a No
Co., Ltd. discharge
3COD, NH3-N, SO , NOx, TN, VOC, PM and TP stand for chemical oxygen demand, ammonia nitrogen, sulfur dioxide, nitrogen
oxides, total nitrogen, volatile organic compound, particulate matter and total phosphorus, respectively.
The English name is for identification purpose only.
23
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Name of main Total Excess
Distributio Executive Total
pollutants and Number of amount ive
Discharge n of Discharge pollutant verified
Name pollutant discharge of discha
method discharge concentration discharge amount of
characteristics outlets discharg rge or
4 outlets standard discharge
e not
Shandong NHU Vitamins Filtered
PM 5 Plant area 3mg/m 10mg/m 0.861t ≤13.93t/a No
Co., Ltd. discharge
Shandong NHU Vitamins Sewer
COD 1 Plant area 510mg/L 2000mg/L 7.333t ≤40.51t/a No
Co., Ltd. connection
Shandong NHU Vitamins Sewer
NH3-N 1 Plant area 20mg/L 100mg/L 0.734t ≤4.05t/a No
Co., Ltd. connection
Heilongjiang NHU Filtered
PM 1 Plant area 8.24mg/m 30mg/m 1.47t ≤43.812t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
NOx 1 Plant area 92.81mg/m 200mg/m 16.54t ≤99.11t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
SO 1 Plant area 77.42mg/m 200mg/m 13.80t ≤142.33t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
PM 1 Plant area 26.25mg/m 200mg/m 0.22t ≤43.812t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
NOx 1 Plant area 98.13mg/m 240mg/m 0.82t ≤99.11t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
SO 1 Plant area 111.35mg/m 850mg/m 0.93t ≤142.33t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
PM 1 Plant area 20.95mg/m 200mg/m 0.17t ≤43.812t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
NOx 1 Plant area 97.27mg/m 240mg/m 0.80t ≤99.11t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
SO 1 Plant area 111.02mg/m 850mg/m 0.91t ≤142.33t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
PM 1 Plant area 19.41mg/m 200mg/m 0.15t ≤43.812t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
NOx 1 Plant area 76.49mg/m 240mg/m 0.61t ≤99.11t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
SO 1 Plant area 110.46mg/m 850mg/m 0.88t ≤142.33t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
PM 1 Plant area 28.36mg/m 200mg/m 0.21t ≤43.812t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
NOx 1 Plant area 68.78mg/m 240mg/m 0.51t ≤99.11t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
SO 1 Plant area 127.12mg/m 850mg/m 0.94t ≤142.33t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
PM 1 Plant area 8.24mg/m 120mg/m 1.05t ≤43.812t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Filtered
VOC 2 Plant area 61.64mg/m 150mg/m 6.12t ≤118.8t/a No
Biotechnology Co., Ltd. discharge
Heilongjiang NHU Sewer
COD 1 Plant area 200.23mg/L 350mg/L 540.67t / No
Biotechnology Co., Ltd. connection
Heilongjiang NHU Sewer
NH3-N 1 Plant area 1.23mg/L 35mg/m 3.33t / No
Biotechnology Co., Ltd. connection
Heilongjiang NHU Sewer
TP 1 Plant area 2.06mg/L 6mg/L 5.56t / No
Biotechnology Co., Ltd. connection
Construction and operation of pollution prevention and control facilities
The company has established the environmental protection concept of green development: 1. Introduce the concept
of green chemistry to develop and produce more environmentally friendly products. 2. We should change from a
support type to a responsibility type, and do a good job in source reduction, process control, and end treatment. 3.
Pursue reduction, resources and harmlessness, build an ecological factory, and realize the harmonious development
of human and nature.
4COD, NH3-N, SO , NOx, TN, VOC, PM and TP stand for chemical oxygen demand, ammonia nitrogen, sulfur dioxide, nitrogen
oxides, total nitrogen, volatile organic compound, particulate matter and total phosphorus, respectively.
24
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Wastewater treatment: the company has a complete wastewater treatment system; There are wastewater collection
systems for production sewage, domestic sewage, initial rainwater, accident water, etc. to achieve the separation of
clean water and sewage and the separation of rain and sewage. The waste water tank is covered and sealed, and all
the waste gas generated is effectively collected and finally incinerated to effectively reduce the waste gas emission.
Waste gas treatment: the company adopts nitrogen sealing system to effectively reduce waste gas emission;
According to different waste gas compositions and properties, different pretreatment technologies are adopted.
Meanwhile, the company introduces advanced waste gas treatment devices from abroad to strengthen the waste gas
treatment capacity. The waste gas leakage detection and repair (LDAR) shall be carried out regularly every year to
effectively supervise and reduce the unorganized waste gas. The company actively upgraded the coal-fired heat-
conducting oil furnace to "replace coal with gas", introduced natural gas boilers, carried out low nitrogen
transformation, and added SNCR denitration facilities at the end, actively carried out nitrogen oxide treatment. The
operation and maintenance of the odor evaluation system facilities, pay attention to the monitoring data of all
monitoring points every day, do a timely trend analysis, and basically realize the early warning, traceability and
evaluation of the company's odor.
Solid waste disposal: the company has built a standardized hazardous waste temporary storage warehouse and
hazardous waste incineration device. The outsourced solid waste is entrusted to a qualified unit for treatment, and
is transferred in strict accordance with the requirements of the management measures for five copies of hazardous
waste transfer.
Noise prevention and control: low noise equipment shall be selected, and noise reduction measures of foundation
vibration reduction shall be taken for equipment that does not need to be fixed. In addition to foundation vibration
reduction, sound insulation covers shall be added around the noise source for sound insulation for air compressors,
blowers and various pumps.
Emergency management: install on-line exhaust gas monitor around the plant boundary to monitor the plant
boundary environment in real time; The VOC online monitor is introduced to monitor the exhaust emission data in
real time and upload the detection data to the monitoring platform; The online monitoring of wastewater by one
enterprise and one pipe monitors the wastewater discharge indicators in real time and uploads them to the
Environmental Protection Bureau normally; Introduce the domestic first-class overhead flare technology to deal
with the waste gas produced abnormally in the production process; The introduction of domestic first-class Leakage
Stoppage Technology under pressure will reduce the abnormal leakage of pipelines, valves, flanges and tanks to the
minimum, thus reducing the impact on the environment caused by a large number of leakage.
Environmental impact assessment (EIA) of construction projects and other administrative permits for
environmental protection
The company's annual production of 500 tons of Karon anhydride, 500 tons of azabicycles and 800 tons of sodium
sulfate, and 250,000 tons of methionine (phase II) have all obtained the EIA approval.
Environmental emergency response plan
Zhejiang NHU special materials Co., Ltd. formulated the emergency plan for environmental emergencies of
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Zhejiang NHU special materials Co., Ltd. in accordance with the administrative measures for the filing of
emergency plans for environmental emergencies of enterprises and institutions (for Trial Implementation) issued
by the state and the actual situation of the company, and reported it to the Shangyu branch of Shaoxing Ecological
Environment Bureau in June 2022 for filing.
On May 25, 2022, Shandong NHU amino acid Co., Ltd. reapplied for the emergency plan for environmental
emergencies, with the number of 370703-2022-048-h, which is within the validity period.
Environmental self-monitoring program
The company has good pollutant emission monitoring and management ability and can timely inform the
environmental protection administrative department and the public of the monitoring information. The company
has developed relevant self-test plans, which cover the indicators of the company's organized waste gas, unorganized
waste gas and groundwater. At the same time, a third-party testing company is entrusted to carry out regular
monitoring. The company implements environmental information disclosure in strict accordance with the national,
provincial, municipal and county requirements on enterprise environmental information disclosure. Each subsidiary
has made enterprise environmental protection information public on platforms such as the environmental
information management system of provincial and municipal key pollutant discharge units.
Administrative penalties for environmental problems during the reporting period
Name Reasons for Violations Results of Impact on the production and Rectification measures of
punishment punishment operation of the Company the Company
N/A N/A N/A N/A N/A N/A
Other environmental information that should be disclosed
None.
Measures taken to reduce carbon dioxide emissions during the reporting period and their effects
√ Applicable □ Not applicable
In the research and development of new products, the carbon emission of 10,000 yuan output value is taken as an
important indicator for the process route and environmental feasibility assessment of new products. The green
development technology is applied in the research and development of new products to improve the atomic
utilization rate and reduce the carbon emission generated by the consumption of raw materials from the source.
Other information related to environmental protection
None.
II. Social responsibilities
None.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section VI Significant Events
I. Commitment performance fulfilled during the reporting period and not fulfilled as of the end
of the reporting period by parties related to commitments including the actual controller of the
Company, shareholders, related parties, acquirers and the Company
√ Applicable □ Not Applicable
Commitments Parties making Types of Content of commitments Time of Term of
Performance
commitments commitments commitment commitment
Commitments to None None None None None
shares reform
Commitments
made in reports
on acquisition None None None None None
and changes in
equity
Commitments
made in asset None None None None None
restructuring
NHU Holding
Group Co., Ltd. and The signing of Commitment
张平一 (Zhang Commitments on No Engagement in
Pingyi), 石程 (Shi on horizontal Horizontal Competition and
Cheng), 袁益中 competition, commitments on no
June 25, 2004 Long-term Strictly
(Yuan Yizhong), Hu related party engagement in business
performed
Baishan, Shi transactions and activities result in horizontal
Guanqun, Wang occupation of competition with operations
Xuewen, 崔欣荣 funds of the Company after
(Cui Xinrong), 王旭 listing.
林 (Wang Xulin)
The Company’s directors,
senior executives committed
to perform their duties
faithfully and diligently to
safeguard the legitimate
rights and interests of the
Company and shareholders,
Commitments and make the following
made in IPO or commitments in accordance
refinancing with the relevant provisions
of the CSRC for the full
Hu Baifan; Hu performance of measures on
Baishan;Shi filling immediate returns: 1.
Guanqun; Wang not to transfer benefits to January 12, Long-term Strictly
Xuewen; Cui other entities or individuals 2017 performed
Xinrong; Wang without compensation or on
Zhengjiang; Zhou unfair terms, and not to use
Guiyang other means to harm
benefits of the Company; 2.
to impose restrictions on
duty consumption of
member of the Board of
Directors and senior
executives; 3. not to use
assets of the Company to
engage in investment or
consumption activities not
related to duty performance;
4. to link remuneration
27
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
system formulated by the
Board of Directors or
remuneration committee to
the implementation of
measures on filling
immediate returns; 5. to link
vesting conditions of equity
incentive to be published in
the future to the
implementation of measures
on filling immediate returns.
Not to interfere in the
Company’s business and
management activities in
Hu Baifan; NHU excess of authority; not to
January 12, Long-term Strictly
Holding Group Co., encroach on benefits of the
2017 performed
Ltd. Company; to perform
measures on filling
immediate returns in a
practical way.
Commitments to None None None None None
equity incentive
During the period of
increasing the shares of the
company and within the
legal period, NHU Holding
Other
commitments to NHU Holding Share increase Group Co., Ltd. will not Strictly
minority May 18, 2022 6 months
Group Co., Ltd. commitment reduce the shares of the performed
shareholders of
the Company company and will complete
the increase plan within the
above implementation
period.
Whether commitments are performed on time Yes
If commitment performance is not fulfilled on time, please explain detailed reasons for it and the
Not applicable
next work plans.
II. Non-operating occupation of funds over listed companies by controlling shareholders and
other related parties
□ Applicable √ Not Applicable
There is no non-operating occupation of funds over listed companies by controlling shareholders and other related parties during the
reporting period.
III. Illegal external guarantees
□ Applicable √ Not Applicable
There is no illegal external guarantee during the reporting period.
IV、Engagement and dismissal of accounting firms
Whether the semi-annual report has been audited or not
28
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
□ Yes √ No
The semi-annual report has not been audited.
V. Statements by the Board of Directors, the Board of Supervisors on the “Modified Auditor’s
Report” issued by the accounting firm during the reporting period
□ Applicable √ Not Applicable
VI. Explanations by the Board of Directors on the “Modified Auditor’s Report” issued by the
accounting firm last year
□ Applicable √ Not Applicable
VII. Matters related to bankruptcy and restructuring
□ Applicable √ Not Applicable
There are no matters related to bankruptcy and restructuring during the reporting period.
VIII. Lawsuits
Significant lawsuits and arbitration
□ Applicable √ Not Applicable
There is no significant lawsuit and arbitration during the reporting period.
Other lawsuits
□ Applicable √ Not Applicable
IX. Penalties and rectification
□ Applicable √ Not Applicable
X. Integrity of the Company, its controlling shareholders and the actual controller
□ Applicable √ Not Applicable
XI. Significant related party transactions
1. Related party transactions relevant to daily operations
□ Applicable √ Not Applicable
There is no related party transaction relevant to daily operations during the reporting period.
2. Related party transactions in purchase or sale of assets or equities
□ Applicable √ Not Applicable
There is no related party transaction in purchase or sale of assets or equities during the reporting period.
3. Related party transactions in joint external investments
□ Applicable √ Not Applicable
There is no related party transaction in joint external investments during the reporting period.
29
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
4. Related party creditor’s rights and debts
□ Applicable √ Not Applicable
There is no related creditor’s rights or debts during the reporting period.
5. Transactions with related financial companies
□ Applicable √ Not Applicable
There is no business of deposits, loans, credit granting or other financial businesses between the Company and its related financial
companies.
6. Transactions between financial companies controlled by the Company and the Company’s related parties
□ Applicable √ Not Applicable
There is no business of deposits, loans, credit granting or other financial businesses between financial companies controlled by the
Company and the Company’s related parties.
7. Other significant related party transactions
□ Applicable √ Not Applicable
There is no other significant related party transaction during the reporting period.
XII. Significant contracts and performance
1. Matters of trusteeship, contracting and leases
(1) Trusteeship
□ Applicable √ Not Applicable
There is no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not Applicable
There is no contracting during the reporting period.
(3) Leases
□ Applicable √ Not Applicable
There is no lease during the reporting period.
2. Significant guarantees
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
External guarantees by the Company and its subsidiaries to third parties (guarantees to subsidiaries are excluded)
Announcement Whether Whether
Actual Actual Counter
Guaranteed date of disclosure Amount Types of Collaterals Period of the guarantee
commencemen amount guarantees
parties of amount guaranteed guarantees (if any) guarantee guarantee for related
t date guaranteed (if any)
guaranteed is mature parties
Total amount of guarantees 0 Total amount actually guaranteed during the 0
approved during the reporting reporting period (A2)
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
period (A1)
Total amount of guarantees
approved at the end of the 0 Total amount actually guaranteed at the end of 0
the reporting period (A4)
reporting period (A3)
The Company’s guarantees to subsidiaries
Announcement Whether Whether
Actual Actual Counter
Guaranteed date of disclosure Amount Types of Collaterals Period of the guarantee
commencemen amount guarantees
parties of amount guaranteed guarantees (if any) guarantee guarantee for related
t date guaranteed (if any)
guaranteed is mature parties
Heilongjiang Joint and
NHU several 06/24/2019-
12/28/2018 200,000.00 06/24/2019 200,000.0 No No
Biotechnology liability 12/31/2023
0
Co., Ltd. guarantee
Shandong Joint and
NHU several 11/29/2019-
12/28/2018 90,000.00 11/29/2019 No No
Vitamins Co., 50,000.00 liability 12/21/2023
Ltd. guarantee
Joint and
NHU (Hong
several 09/07/2020-
Kong) Trading 05/22/2020 120,000.00 09/7/2020 No No
53,691.20 liability 09/07/2023
Co., Ltd.
guarantee
Shandong Joint and
NHU Fine several
Chemical liability 03/24/2021-
05/22/2020 50,000.00 03/24/2021 No No
Science and 50,000.00 guarantee 12/25/2025
Technology
Co., Ltd.
Joint and
NHU (Hong
several 06/18/2021-
Kong) Trading 04/22/2021 120,000.00 06/18/2021 Yes No
7,008.38 liability 06/17/2022
Co., Ltd.
guarantee
Joint and
NHU (Hong
several 07/16/2021-
Kong) Trading 04/22/2021 120,000.00 07/16/2021 No No
7,008.38 liability 07/14/2022
Co., Ltd.
guarantee
Heilongjiang Joint and
NHU several 08/26/2021-
04/22/2021 40,000.00 08/26/2021 No No
Biotechnology 37,000.00 liability 12/21/2025
Co., Ltd. guarantee
Joint and
NHU (Hong
several 09/08/2021-
Kong) Trading 04/22/2021 120,000.00 09/8/2021 Yes No
82.38 liability 01/30/2022
Co., Ltd.
guarantee
Zhejiang NHU Joint and
Imports & several 09/22/2021-
04/22/2021 10,000.00 09/22/2021 Yes No
Exports Co., 10,000.00 liability 05/31/2022
Ltd. guarantee
Joint and
NHU (Hong
several 12/09/2021-
Kong) Trading 04/22/2021 120,000.00 12/9/2021 Yes No
63.93 liability 05/30/2022
Co., Ltd.
guarantee
新昌新和成维 Joint and
生素有限公司 several 12/16/2021-
(Xinchang NHU 04/22/2021 40,000.00 12/16/2021 No No
29,000.00 liability 12/25/2026
Vitamins Co., guarantee
*
Ltd. )
Joint and
NHU (Hong
several 03/28/2022-
Kong) Trading 04/22/2021 120,000.00 03/28/2022 No No
35.99 liability 09/08/2022
Co., Ltd.
guarantee
NHU (Hong Joint and 05/10/2022-
05/11/2022 130,000.00 05/10/2022 No No
Kong) Trading 5,369.12 several 05/10/2023
* The English name is for identification purpose only.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Co., Ltd. liability
guarantee
Joint and
NHU (Hong
several 05/27/2022-
Kong) Trading 05/11/2022 130,000.00 05/27/2022 No No
97.58 liability 11/01/2022
Co., Ltd.
guarantee
Zhejiang NHU Joint and
Imports & several 05/31/2022-
05/11/2022 15,000.00 05/31/2022 No No
Exports Co., 15,000.00 liability 05/30/2023
Ltd. guarantee
Joint and
NHU (Hong
several 06/17/2022-
Kong) Trading 05/11/2022 130,000.00 06/17/2022 No No
7,008.38 liability 06/18/2023
Co., Ltd.
guarantee
Joint and
Zhejiang NHU
several 06/24/2022-
Pharmaceutica 05/11/2022 60,000.00 06/24/2022 No No
55,000.00 liability 06/23/2027
l Co., Ltd.
guarantee
Total amount of guarantees
Total amount actually guaranteed for
approved for subsidiaries during 225,000 82,511.07
subsidiaries during the reporting period (B2)
the reporting period (B1)
Total amount of guarantees Total amount actually guaranteed for
approved for subsidiaries at the 651,735.57 subsidiaries at the end of the reporting period 509,210.65
end of the reporting period (B3) (B4)
Guarantees by subsidiaries to subsidiaries
Announcement Whether Whether
Actual Amount Counter
Guaranteed date of disclosure Amount Types of Collaterals Period of the guarantee
commencemen actually guarantee (if
parties of amount guaranteed guarantees (if any) guarantee guarantee for related
t date guaranteed any)
guaranteed is mature parties
Total amount of guarantees Total amount actually guaranteed
approved for subsidiaries during 0 for subsidiaries during the reporting 0
the reporting period (C1) period (C2)
Total amount of guarantees Total amount actually guaranteed
approved for subsidiaries at the 0 for subsidiaries at the end of the 0
end of the reporting period (C3) reporting period (C4)
Total amount guaranteed by the Company (namely sum of the above three items)
Total amount of guarantees Total amount actually guaranteed
approved during the reporting 225,000 during the reporting period 82,511.07
period (A1+B1+C1) (A2+B2+C2)
Total amount of guarantees Total amount actually guaranteed at
approved at the end of the 651,735.57 the end of the reporting period 509,210.65
reporting period (A3+B3+C3) (A4+B4+C4)
Proportion of the amount actually guaranteed (A4+B4+C4) to net assets of the Company 23.03%
Including:
Balance of guarantees for shareholders, the actual controller and its related parties (D) 0
Balance of debt guarantee directly or indirectly for guaranteed parties with debt to asset ratio exceeding 70% (E) 331,000
The amount of the total amount guaranteed exceeding 50% of net assets (F) 0
Total amount guaranteed of three items above (D+E+F) 331,000
Remarks on unexpired guarantee contracts with guarantee liabilities incurred or evidence indicating the None
possibility of undertaking joint liquidation liabilities during the reporting period (if applicable)
Remarks on external guarantee in violation of provisions (if applicable) None
32
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
3. Entrusted financing
√ Applicable □ Not Applicable
Entrusted financing during the reporting period
Unit: RMB 0,000 yuan
Impairment amount
Types Source of entrusted Entrusted amount Unexpired balance Overdue and not accrued for financial
funds recovered amount products overdue
and not recovered
Bank financial Raised funds 275,000 92,000 0 0
products
Total 275,000 92,000 0 0
High-risk entrusted financial products with individual significant amount or low security and poor liquidity
□ Applicable √ Not Applicable
When the principal of entrusted financial products is expected to be irrevocable or there are other conditions result in impairment of
entrusted financial products
□ Applicable √ Not Applicable
4. Other significant contracts
□ Applicable √ Not Applicable
There is no other significant contract during the reporting period.
XIII. Other significant events
√ Applicable □ Not Applicable
Ⅰ Progress of the Share Repurchase Plan
Please refer to “Progress of the Share Repurchase Plan” under the item “I. Movements in shares” in “Section VII Movements in Shares
and Conditions of Shareholders” for details.
II Progress of the Third Employee Stock Ownership Plan
The third employee stock ownership plan of the Company was deliberated and adopted by the second extraordinary shareholders’
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, the duration shall not exceed 24 months. On
February 26, 2022, the number of shares held by the third employee stock ownership plan of the Company was 10,131,522, accounting
for 0.39% of the company's total share capital at that time, and the lock-up period expired. On May 25, 2022, holding shares in the
third phase of employee stock ownership plan increased to 12,157,826 shares after the Company’s annual equity distribution of 2021,
accounting for 0.39% of total current shares. For more details, please refer to The Suggestive Announcement on the Expiration of Lock-
up period of the Third Employee Stock Ownership plan （2022-004）published on the company's designated information disclosure
media and cninfo（ http://www.cninfo.com.cn ）.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
III Progress of shareholding increase by controlling shareholders
Based on the confidence in the sustainable and stable development of the company in the future and the recognition of the company's
value, and to enhance investors’ confidence, the controlling shareholder of the company, NHU Holding Group Co., Ltd plans to increase
its holdings of the company's shares in the next six months through the ways allowed by the trading system of Shenzhen Stock Exchange
(including but not limited to centralized bidding, block trading, etc.), and the amount of shares to be increased is not less than RMB
300 mn and not more than RMB 600 mn. There is no price range in this shareholding increase plan, and the shareholding increase plan
will be gradually implemented according to the fluctuation of the company's stock price and the overall trend of the capital market. For
more details, please refer to The Announcement of Controlling Shareholders’ Share Increase Plan (2022-031) published on the
company's designated information disclosure media and cninfo（ http://www.cninfo.com.cn ）on May 18, 2022.By June 30, 2022,
NHU Holding Group Co., Ltd had increased its holdings by 4,195,452 shares.
IV Progress of Investment Project with Raised Funds
With the approval of [2017] No. 1684 document of China Securities Regulatory Commission, the company's lead underwriter, CSC
Securities Co., Ltd., privately issued 175 million common shares (A shares) to specific objects at an issue price of RMB 28.00/share,
raising a total of RMB 4,900 million. After deducting the underwriting and recommendation fees of RMB 30 million yuan (including
tax), the raised funds amounted to RMB 4,870 million, which was remitted to the raised funds supervision account of the company by
the lead underwriter, CSC Securities Co., Ltd. on December 7, 2017. In addition, after deducting lawyer fees, audit fees, capital
verification fees and other issuance expenses of RMB 4.62 million (excluding tax), and considering the deductible VAT input tax of
RMB 1.70 million of underwriting fees and recommendation fees deducted by the lead underwriter, the net amount of funds raised was
RMB 4,867.08 million. The availability of the above raised funds has been verified by Tianjian Certified Public Accountants (special
general partnership), who issued the capital verification report ([2017] No. 503).
From January 1 to June 30, 2022, the actual use of the raised funds was RMB 692.82 mn, and the accumulated investment of the raised
funds project was RMB 2,780.26 mn. By June 30, 2022, the balance of raised funds was RMB 2,765.88 mn (including financial
products and structured deposits, the net amount of interest on cash in bank less handling charges, gains on financial products and
structured deposits received on an accumulated basis).
XIV. Significant events of subsidiaries of the Company
□ Applicable √ Not Applicable
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section VII Movements in Shares and Information about
Shareholders
I. Movements in shares
1. Details
Unit: Share
Before Movements（+/-） After
Items Issue of Reserve
Quantity % to Bonus Others Subtotal Quantity % to total
new transferred to
total shares
shares shares
I. Restricted shares 30,311,835 1.18% 6,062,367 6,062,367 36,374,202 1.18%
1. Held by other
30,311,835 1.18% 6,062,367 6,062,367 36,374,202 1.18%
domestic parties
Including:
Held by domestic 30,311,835 1.18% 6,062,367 6,062,367 36,374,202 1.18%
natural persons
II. Unrestricted
2,548,082,925 98.82% 506,450,229 506,450,229 3,054,533,154 98.82%
shares
1. RMB ordinary
2,548,082,925 98.82% 506,450,229 506,450,229 3,054,533,154 98.82%
shares
III. Total 2,578,394,760 100.00% 512,512,596 512,512,596 3,090,907,356 100.00%
Reason for movements
√ Applicable □ Not Applicable
The 2021 annual general meeting of shareholders held on May 10, 2022 reviewed and approved the Proposal on Profit Distribution
Plan of 2021, which was implemented and completed on May 25, 2022. The Annual Equity Distribution Plan for 2021: Based on
2,562,562,984 shares (the total share capital of the company at that time, which was 2,578,394,760 shares, excluded 15,831,776
repurchased shares), distributated cash dividends of RMB 7 (tax included) per 10 shares to all shareholders, with a total cash distribution
of RMB 1,793,794,088.80 (tax included), and distributated 2 shares per 10 shares by converting capital reserve to all shareholders,
with a total of 512,512,596 shares added, after the increase, the total share capital amounted to 3,090,907,356 shares.
Approval on movements in shares
√ Applicable □ Not Applicable
Please refer to “Reason for movements” under the item “I. Movements in shares” in “Section VII Movements in Shares and Conditions
of Shareholders” for details.
Transfer of shares
□ Applicable √ Not Applicable
Progress of the Share Repurchase Plan
√ Applicable □ Not Applicable
At the 7th Meeting of the 8th Board of Directors held on August 18, 2021, Zhejiang NHU Co., Ltd. (hereinafter referred to as “the
company”) deliberated and adopted The Proposal on Share Repurchase Plan of the Company, agreed that the company would use its
own funds to repurchase part of the public shares of the company in the form of centralized bidding transaction. And the shares
35
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
repurchased would be used for implementing equity incentive plan or employee stock ownership plan. The total amount of repurchase
would be RMB300-600mn, and the repurchase price would be no more than RMB41/share. The specific amount of shares repurchased
and its proportion in the total share capital shall be subject to the actual amount of shares repurchased at the expiration of the repurchase
period. The implementation period of the share repurchase plan shall not exceed 12 months from the date when the board of directors
of the company deliberates and adopts The Proposal on Share Repurchase Plan of the Company.
By May 31, 2022, the company has repurchased 17,485,676 shares in the form of centralized bidding trading through Zhejiang NHU
Co., Ltd. Repurchase Securities Account, accounting for 0.5657% of the company's total share capital. The maximum transaction price
is RMB 31.88/ share, the minimum transaction price is RMB 20.20/share, and the cumulative transaction amount is RMB
500,019,703.22 (excluding transaction costs). During the reporting period, 6,497,307 shares were repurchased in total with a cumulative
transaction amount of RMB 179,684,551.90 (excluding transaction costs). The actual repurchase period is from August 31, 2021 to
May 30, 2022.The share repurchase plan complies with the requirements of relevant laws and regulations and the company's established
repurchase plan. The Share Repurchase Plan of the Company has been implelmented. For more details, please refer to The
Announcement on the progress of repurchasing shares of the company and the completion of repurchasing (2022-032) published on
the company's designated information disclosure media and cninfo（ http://www.cninfo.com.cn ）. (Note: the company implemented
the 2021 annual equity distribution on May 25, 2022, and the proportion of the number of repurchased company shares in the total
capital stock of the company has been adjusted accordingly.)
Implementation progress of shareholding reduction for shares repurchased through centralized bidding
□ Applicable √ Not applicable
Effect of movements in shares on financial indicators of preceding year and preceding eriod such as basic EPS and diluted EPS, net
assets per share attributable to shareholders of ordinary shares
√ Applicable □ Not Applicable
Please refer to “Company Profile and Key Financial Indicators” under the item “IV. Key accounting data and financial indicators” for
details.
Other contents the Company considered as necessary or securities regulatory institutions required disclosure
□ Applicable √ Not applicable
2. Movement in restricted shares
√ Applicable □ Not applicable
Unit: Share
Number of
Number of Number of Number of
restricted shares
restricted shares restricted shares restricted shares Reason for
Shareholders increased during Date of unlocking
at the beginning unlocked during at the end of the restriction
the current
of the period the current period period
period
75% of total shares
Locked up for the
Hu Baifan held by the executive
8,701,873 1,740,375 10,442,248 shares are held by
are locked up on an
the executive
annual basis.
75% of total shares
Locked up for the
Hu Baishan held by the executive
9,122,455 1,824,491 10,946,946 shares are held by
are locked up on an
the executive
annual basis.
75% of total shares
Locked up for the
Shi Guanqun held by the executive
6,548,649 1,309,730 7,858,379 shares are held by
are locked up on an
the executive
annual basis.
Wang Xuewen 5,548,707 1,109,741 6,658,448 Locked up for the 75% of total shares
36
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Number of
Number of Number of Number of
restricted shares
restricted shares restricted shares restricted shares Reason for
Shareholders increased during Date of unlocking
at the beginning unlocked during at the end of the restriction
the current
of the period the current period period
period
shares are held by held by the executive
the executive are locked up on an
annual basis.
75% of total shares
Locked up for the
Wang held by the executive
286,875 57,375 344,250 shares are held by
Zhengjiang are locked up on an
the executive
annual basis.
75% of total shares
Locked up for the
Zhou Guiyang held by the executive
103,276 20,655 123,931 shares are held by
are locked up on an
the executive
annual basis.
Total 30,311,835 0 6,062,367 36,374,202 -- --
II. Issuance and listing of securities
□ Applicable √ Not Applicable
III.Number of shareholders of the Company and their shareholding conditions
Unit: Share
Total shareholders of preferred shares with
Total shareholders of ordinary shares
93,348 voting rights restored at the end of the 0
at the end of the reporting period
reporting period
Shareholders with holding proportion over 5% or the top 10 shareholders with largest holding proportions
Quantity of Shares pledged,
ordinary Movements marked or frozen
Holding Quantity of Quantity of
Nature of shares at the during the
Shareholders proporti restricted unrestricted
shareholders end of the reporting
on shares shares Condition Quantity
reporting period
period
Domestic
NHU Holding Group non-state-
48.74% 1,506,479,825 254,576,181 0 1,506,479,825
Co., Ltd. owned legal
person
Hong Kong Securities
Overseas
Clearing Company 3.10% 95,701,262 21,807,933 0 95,701,262
legal person
Limited
Shanghai Chongyang
Strategic Investment
Co., Ltd. － Others 1.75% 54,072,200 9,012,033 0 54,072,200
Chongyang Strategic
Huizhi Fund
National Social
Security Fund Others 0.91% 28,000,000 8,000,000 0 28,000,000
No.503Portfolio
Kuwait Investment Overseas
0.56% 17,222,802 1,904,100 0 17,222,802
Authority legal person
Shanghai Chongyang
Strategic Investment
Co., Ltd. － Others 0.53% 16,248,559 1,018,422 0 16,248,559
Chongyang Strategic
Yingzhi Fund
Domestic
Hu Baishan natural 0.47% 14,595,929 2,432,655 10,946,946 3,648,983
person
Beijing Yuanfeng
Private Equity Fund Others 0.46% 14,372,624 2,395,437 0 14,372,624
Management
37
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Partnership (LP) －
Yuanfeng Value
Private Equity
Investment Fund
Domestic
Chongyang Group non-state-
0.45% 13,962,191 2,327,032 0 13,962,191
Co., Ltd. owned legal
person
Domestic
Hu Baifan natural 0.45% 13,922,998 2,320,500 10,442,248 3,480,750
person
Strategic investors or ordinary legal persons that Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Huizhi Fund
became one of the top 10 shareholders due to the became one of the top 10 shareholders with largest holding proportions due to its
allotment of new shares participation in private placement of shares in 2017.
Among the above shareholders, Hu Baifan is the chairman of the board, general manager
and actural controller of NHU Holding Group Co., Ltd.; Hu Baishan is the director of
Remarks on relationships or concerted action
NHU Holding Group Co., Ltd., and Hu Baifan and Hu Baishan are brothers. The Company
between the top 10 shareholders with largest
does not know whether other shareholders have relationships and whether they are persons
holding proportions
acting in concert as defined in Administration of the Takeover of Listed Companies
Procedures.
Remarks on proxy voting and waiver of voting None
right of the above shareholders
Special remarks on top 10 shareholders with The Company’s special securities account for repurchase is attributable to the top 10
special repurchase accounts shareholders, who however did not participate in the presentation of such balances.
Top 10 shareholders with unrestricted shares
Quantity of unrestricted shares at the end of Category of shares
Shareholders
the reporting period Category Quantity
NHU Holding Group Co., Ltd. 1,506,479,825 RMB ordinary shares 1,506,479,825
Hong Kong Securities Clearing Company RMB ordinary shares
95,701,262 95,701,262
Limited
Shanghai Chongyang Strategic Investment Co., RMB ordinary shares
54,072,200 54,072,200
Ltd. － Chongyang Strategic Huizhi Fund
National Social Security Fund No.503Portfolio 28,000,000 RMB ordinary shares 28,000,000
Kuwait Investment Authority 17,222,802 RMB ordinary shares 17,222,802
Shanghai Chongyang Strategic Investment Co., RMB ordinary shares
16,248,559 16,248,559
Ltd. － Chongyang Strategic Yingzhi Fund
Beijing Yuanfeng Private Equity Fund
Management Partnership (LP) － Yuanfeng 14,372,624 RMB ordinary shares 14,372,624
Value Private Equity Investment Fund
Chongyang Group Co., Ltd. 13,962,191 RMB ordinary shares 13,962,191
Agricultural Bank Of China Limited- Franklin
Guohai deepening value hybrid securities 13,187,519 RMB ordinary shares 13,187,519
investment fund
The Company－Employee stock ownership plan RMB ordinary shares
12,157,826 12,157,826
phase III
Among the above shareholders, Hu Baifan is the chairman of the board, general manager
Remarks on relationships or concerted action
and actural controller of NHU Holding Group Co., Ltd.; Hu Baishan is the director of
between the top 10 shareholders with unrestricted
NHU Holding Group Co., Ltd., and Hu Baifan and Hu Baishan are brothers. The Company
shares, and between the top 10 shareholders with
does not know whether other shareholders have relationships and whether they are persons
unrestricted shares and top 10 shareholders with
acting in concert as defined in Administration of the Takeover of Listed Companies
largest holding proportions.
Procedures.
Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Huizhi Fund
holds 54,072,127 shares through client account of collateral securities for margin trading
of Guotai Junan Securities Co., Ltd.; Shanghai Chongyang Strategic Investment Co., Ltd.
Remarks on top 10 shareholders of ordinary － Chongyang Strategic Yingzhi Fund holds 3,677,161 shares through client account of
shares participating in securities margin trading collateral securities for margin trading of Citic Securities Co., Ltd.; Beijing Yuanfeng
Private Equity Fund Management Partnership (LP) －Yuanfeng Value Private Equity
Investment Fund holds 7,186,304 shares through client account of collateral securities for
margin trading of Huatai Securities Co., Ltd.; Chongyang Group Co., Ltd. holds
38
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
13,961,946 shares through client account of collateral securities for margin trading of
China Merchants Securities Co., Ltd..
Note: The Company’s special securities account for repurchase is attributable to the top 10 shareholders with unrestricted shares, who
however did not participate in the presentation of such balances.
Did the top 10 shareholders of ordinary shares and the top 10 shareholders of unrestricted ordinary shares perform agreed repurchase
transaction during the reporting period?
□ Yes √ No
The top 10 shareholders of ordinary shares and the top 10 shareholders of unrestricted ordinary shares did not perform agreed
repurchase transaction during the reporting period.
IV. Movement in shares of directors, supervisors and senior executives
√ Applicable □Not Applicable
Number of Number Number of Number of
Number of Number of Number of
shares of shares unrestricted restricted
shares held shares held restricted
increased decreased shares held shares
Name Position Status at the at the end shares held
during the during the at the granted
beginning of of the at the end of
current current beginning of during this
the period period the period
period period the period period
(shares) (shares) (shares)
(shares) (shares) (shares) (shares)
Hu Baifan Chairman Incumbent 11,602,498 2,320,500 13,922,998 0 0 0
Vice
Hu Baishan Chairman, Incumbent 12,163,274 2,432,655 14,595,929 0 0 0
President
Director,
Vice
Shi President,
CFO, Incumbent 8,731,532 1,746,306 10,477,838 0 0 0
Guanqun
Secretary
of the
Board
Director,
Wang Incumbent
Vice 7,398,276 1,479,655 8,877,931 0 0 0
Xuewen
President
Wang Director Incumbent 382,500 76,500 459,000 0 0 0
Zhengjiang
Zhou Director Incumbent 137,702 27,540 165,242 0 0 0
Guiyang
Total -- -- 40,415,782 8,083,156 0 48,498,938 0 0 0
V. Changes of holding shareholders or controlling shareholders
Changes of holding shareholders during the reporting period
□ Applicable √ Not applicable
The Company has no changes of holding shareholders during the reporting period.
Changes of actual controller within the reporting period
□ Applicable √ Not applicable
The Company has no changes in actual controller within the reporting period.
39
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section VIII Preferred Shares
□ Applicable √ Not applicable
The Company has no preferred shares during the reporting period.
40
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section IX Bonds
□ Applicable √ Not applicable
41
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Section X Financial Report
I. Audit Reports
Has the semi-annual report been audited
□ Yes √ No
The Company’s semi-annual report has not been audited.
II. Financial Statements
The monetary unit of the financial statements is Renminbi (RMB) Yuan.
1. Consolidated balance sheet
Prepared by Zhejiang NHU Co., Ltd.
June 30, 2022
Unit: RMB Yuan
Items June 30, 2022 January 1, 2022
Current assets:
Cash and bank balances 6,590,012,908.26 5,952,909,626.94
Settlement funds
Loans to other banks
Held-for-trading financial assets 669,555,464.77 1,250,736,359.24
Derivative financial assets
Notes receivable 339,143,431.45 349,145,316.03
Accounts receivable 3,061,875,600.52 2,755,168,573.14
Receivables financing 198,094,359.06 182,891,179.65
Advances paid 123,291,222.99 78,969,960.60
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 247,863,734.11 254,497,248.13
Including: Interest receivable
Dividend receivable 7,159,278.00
Financial assets under reverse repo
Inventories 4,562,173,216.89 3,193,657,367.16
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 330,618,923.96 895,782,268.87
Total current assets 16,122,628,862.01 14,913,757,899.76
Non-current assets:
42
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2022 January 1, 2022
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 383,722,022.14 351,327,625.75
Other equity instrument investments 22,998,147.55 22,998,147.55
Other non-current financial assets
Investment property
Fixed assets 14,895,938,812.24 14,350,779,852.73
Construction in progress 3,855,244,085.78 2,984,835,072.82
Productive biological assets
Oil & gas assets
Right-of-use assets 3,055,722.33 3,123,637.11
Intangible assets 1,616,112,930.87 1,521,729,757.66
Development expenditures
Goodwill 4,410,005.33
Long-term prepayments 16,384,122.78 18,591,707.06
Deferred tax assets 67,981,760.16 55,805,191.95
Other non-current assets 826,539,372.46 501,076,584.40
Total non-current assets 21,692,386,981.64 19,810,267,577.03
Total assets 37,815,015,843.65 34,724,025,476.79
Current liabilities:
Short-term borrowings 2,633,945,563.46 1,403,332,827.92
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 930,489,306.12 694,124,946.73
Accounts payable 1,768,457,348.99 1,435,966,427.76
Advances received
Contract liabilities 82,505,836.42 61,135,258.36
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposit for agency security transaction
Deposit for agency security underwriting
Employee benefits payable 253,936,770.96 370,609,333.07
Taxes and rates payable 272,513,121.07 420,743,262.69
Other payables 133,386,496.99 56,712,103.36
Including: Interest payable
Dividend payable
Handling fee and commission payable
43
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2022 January 1, 2022
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 3,198,114,745.29 2,029,499,509.43
Other current liabilities 6,558,814.10 5,133,310.10
Total current liabilities 9,279,908,003.40 6,477,256,979.42
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 5,070,255,993.98 5,148,811,786.49
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2,845,348.72 2,936,868.15
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 1,072,925,873.88 1,063,699,676.16
Deferred tax liabilities 201,277,061.78 135,751,304.31
Other non-current liabilities
Total non-current liabilities 6,347,304,278.36 6,351,199,635.11
Total liabilities 15,627,212,281.76 12,828,456,614.53
Equity:
Share capital 3,090,907,356.00 2,578,394,760.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 3,613,594,210.48 4,121,063,080.96
Less: Treasury shares 500,059,711.25 320,360,784.48
Other comprehensive income 30,637,305.79 -1,614,172.31
Special reserve 17,141,311.39 12,692,218.51
Surplus reserve 1,289,197,380.00 1,289,197,380.00
General risk reserve
Undistributed profit 14,572,548,858.62 14,152,465,528.17
Total equity attributable to the parent company 22,113,966,711.03 21,831,838,010.85
Non-controlling interest 73,836,850.86 63,730,851.41
Total equity 22,187,803,561.89 21,895,568,862.26
Total liabilities & equity 37,815,015,843.65 34,724,025,476.79
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Wang Xiaobi
2. Parent company balance sheet
Unit: RMB Yuan
44
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2022 January 1, 2022
Current assets:
Cash and bank balances 4,904,862,272.30 4,319,521,960.26
Held-for-trading financial assets 400,000,000.00 200,000,000.00
Derivative financial assets
Notes receivable 309,913,802.00 349,145,316.03
Accounts receivable 849,054,429.84 746,349,980.29
Receivables financing
Advances paid 5,124,146.44 203,802,390.93
Other receivables 2,672,267,915.31 3,095,039,415.47
Including: Interest receivable
Dividend receivable 7,159,278.00
Inventories 465,108,312.18 442,360,365.52
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 2,866,947.56 552,376,721.31
Total current assets 9,609,197,825.63 9,908,596,149.81
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 8,129,972,859.07 8,054,952,017.02
Other equity instrument investments 22,998,147.55 22,998,147.55
Other non-current financial assets
Investment property
Fixed assets 645,778,266.15 674,187,271.03
Construction in progress 4,279,290.33 1,396,104.03
Productive biological assets
Oil & gas assets
Right-of-use assets 2,872,394.68 2,952,929.08
Intangible assets 111,139,636.32 113,952,307.99
Development expenditures
Goodwill
Long-term prepayments 3,440,588.11 4,266,859.15
Deferred tax assets 29,808,237.08 33,889,948.73
Other non-current assets 8,752,356.88 2,311,441.46
Total non-current assets 8,959,041,776.17 8,910,907,026.04
Total assets 18,568,239,601.80 18,819,503,175.85
Current liabilities:
Short-term borrowings 1,413,346,166.66 582,373,105.49
Held-for-trading financial liabilities
45
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items June 30, 2022 January 1, 2022
Derivative financial liabilities
Notes payable 648,046,083.95 464,150,033.90
Accounts payable 83,879,353.09 84,472,375.02
Advances received
Contract liabilities 12,538,596.01 13,839,278.19
Employee benefits payable 58,704,495.05 88,415,827.18
Taxes and rates payable 14,565,380.56 60,253,580.60
Other payables 18,739,292.29 15,631,151.00
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year 2,065,982,274.26 1,238,333,387.67
Other current liabilities 1,630,017.44 1,799,106.15
Total current liabilities 4,317,431,659.31 2,549,267,845.20
Non-current liabilities:
Long-term borrowings 2,629,531,057.76 2,935,717,876.76
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2,756,290.95 2,924,244.46
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 12,980,884.42 15,164,020.12
Deferred tax liabilities 20,079,408.57 20,547,468.08
Other non-current liabilities
Total non-current liabilities 2,665,347,641.70 2,974,353,609.42
Total liabilities 6,982,779,301.01 5,523,621,454.62
Equity:
Share capital 3,090,907,356.00 2,578,394,760.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 3,353,924,529.09 3,861,393,399.57
Less: Treasury shares 500,059,711.25 320,360,784.48
Other comprehensive income 506,954.43 506,954.43
Special reserve
Surplus reserve 1,289,197,380.00 1,289,197,380.00
Undistributed profit 4,350,983,792.52 5,886,750,011.71
Total equity 11,585,460,300.79 13,295,881,721.23
Total liabilities & equity 18,568,239,601.80 18,819,503,175.85
46
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
3. Consolidated income statement
Unit: RMB Yuan
Items 2022 Semi-Annual 2021 Semi-Annual
I. Total operating revenue 8,215,039,277.03 7,340,124,310.11
Including: Operating revenue 8,215,039,277.03 7,340,124,310.11
Interest income
Premiums earned
Revenue from handling charges and
commission
II. Total operating cost 5,728,884,500.93 4,622,590,418.92
Including: Operating cost 4,945,122,803.39 3,822,747,702.20
Interest expenses
Handling charges and commission expenditures
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 51,610,671.05 60,794,324.08
Selling expenses 57,277,897.48 55,479,574.90
Administrative expenses 212,284,822.41 187,505,914.10
R&D expenses 440,357,252.64 351,532,764.55
Financial expenses 22,231,053.96 144,530,139.09
Including: Interest expenses 152,357,156.76 162,484,715.95
Interest income 76,211,850.51 72,107,022.92
Add: Other income 86,626,226.90 74,696,050.67
Investment income (or less: losses) 51,479,744.19 44,982,466.91
Including: Investment income from associates
25,402,893.70 15,735,226.24
and joint ventures
Gains from derecognition of financial
assets at amortized cost
Gains on foreign exchange (or less: losses)
Gains on net exposure to hedging risk (or less:
losses)
Gains on changes in fair value (or less: losses) 11,836,700.04 23,671,758.14
Credit impairment loss -10,613,626.22 -33,637,204.20
Assets impairment loss -7,890,179.58 -6,714,482.90
Gains on asset disposal (or less: losses) 6,674,850.81 1,065,564.79
III. Operating profit (or less: losses) 2,624,268,492.24 2,821,598,044.60
Add: Non-operating revenue 2,024,074.84 10,346,441.45
Less: Non-operating expenditures 2,330,316.96 1,919,029.53
IV. Profit before tax (or less: total loss) 2,623,962,250.12 2,830,025,456.52
Less: Income tax 400,099,923.62 394,709,861.22
V. Net profit (or less: net loss) 2,223,862,326.50 2,435,315,595.30
(I) Categorized by the continuity of operations
47
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2022 Semi-Annual 2021 Semi-Annual
1. Net profit from continuing operations (or less: net
2,223,862,326.50 2,435,315,595.30
loss)
2. Net profit from discontinued operations (or less:
net loss)
(II) Categorized by the portion of equity ownership
1. Net profit attributable to owners of parent company 2,213,877,419.25 2,426,979,148.42
2. Net profit attributable to non-controlling
9,984,907.25 8,336,446.88
shareholders
VI. Other comprehensive income after tax 32,372,570.30 -14,379,132.25
Items attributable to the owners of the parent company 32,251,478.10 -11,402,449.39
(I) Not to be reclassified subsequently to profit or loss
1. Changes in remeasurement on the net defined
benefit plan
2. Items under equity method that will not be
reclassified to profit or loss
3. Changes in fair value of other equity
instrument investments
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss 32,251,478.10 -11,402,449.39
1. Items under equity method that may be
reclassified to profit or loss
2. Changes in fair value of other debt
investments
3. Profit or loss from reclassification of
financial assets into other comprehensive
income
4. Provision for credit impairment of other debt
investments
5. Cash flow hedging reserve
6. Translation reserve 32,251,478.10 -11,402,449.39
7. Others
Items attributable to non-controlling shareholders 121,092.20 -2,976,682.86
VII. Total comprehensive income 2,256,234,896.80 2,420,936,463.05
Items attributable to the owners of the parent
2,246,128,897.35 2,415,576,699.03
company
Items attributable to non-controlling shareholders 10,105,999.45 5,359,764.02
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 0.72 0.79
(II) Diluted EPS (yuan per share) 0.72 0.79
Net profit realized by the combined party in business combination under common control before the business combination in the
current period was 0.00 yuan, and net profit realized by the combined party in the previous period was 0.00 yuan.
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Wang Xiaobi
4. Parent company income statement
Unit: RMB Yuan
Items 2022 Semi-Annual 2021 Semi-Annual
I. Operating revenue 1,881,789,420.59 2,405,071,741.42
Less: Operating cost 1,484,626,689.83 1,649,769,660.92
48
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2022 Semi-Annual 2021 Semi-Annual
Taxes and surcharges 9,419,467.60 14,334,032.09
Selling expenses 13,475,826.45 12,902,562.24
Administrative expenses 70,457,378.58 68,371,878.28
R&D expenses 117,265,377.61 96,647,099.84
Financial expenses 19,040,753.12 29,735,303.93
Including: Interest expenses 86,733,082.30 86,481,023.12
Interest income 67,574,696.90 61,283,871.93
Add: Other income 22,525,397.54 20,317,226.28
Investment income (or less: losses) 90,072,788.02 1,399,890,573.23
Including: Investment income from associates
19,977,116.53 16,864,292.79
and joint ventures
Gains from derecognition of financial assets
at amortized cost
Gains on net exposure to hedging risk (or less:
losses)
Gains on changes in fair value (or less: losses) 8,196,887.24
Credit impairment loss 16,015,667.16 6,804,182.64
Assets impairment loss -6,715,175.00 -6,120,461.67
Gains on asset disposal (or less: losses) -79,510.57 -2,538,880.18
II. Operating profit (or less: losses) 289,323,094.55 1,959,860,731.66
Add: Non-operating revenue 56,720.00 4,706,210.71
Less: Non-operating expenditures 972,209.42 1,100,000.00
III. Profit before tax (or less: total loss) 288,407,605.13 1,963,466,942.37
Less: Income tax 30,379,735.52 86,774,613.55
IV. Net profit (or less: net loss) 258,027,869.61 1,876,692,328.82
(I) Net profit from continuing operations (or less: net
258,027,869.61 1,876,692,328.82
loss)
(II) Net profit from discontinued operations (or less:
net loss)
V. Other comprehensive income after tax
(I) Not to be reclassified subsequently to profit or loss
1. Changes in remeasurement on the net defined
benefit plan
2. Items under equity method that will not be
reclassified to profit or loss
3. Changes in fair value of other equity
instrument investments
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss
1. Items under equity method that may be
reclassified to profit or loss
2. Changes in fair value of other debt
investments
3. Profit or loss from reclassification of
financial assets into other comprehensive
income
4. Provision for credit impairment of other debt
investments
5. Cash flow hedging reserve
6. Translation reserve
49
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2022 Semi-Annual 2021 Semi-Annual
7. Others
VI. Total comprehensive income 258,027,869.61 1,876,692,328.82
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
5. Consolidated cash flow statement
Unit: RMB Yuan
Items 2022 Semi-Annual 2021 Semi-Annual
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of
7,785,627,208.41 6,909,005,885.72
services
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts from original insurance contract
premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest, handling charges and
commission
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security transaction
Receipts of tax refund 696,115,463.88 515,274,673.62
Other cash receipts related to operating activities 181,679,924.51 166,303,614.38
Subtotal of cash inflows from operating activities 8,663,422,596.80 7,590,584,173.72
Cash payments for goods purchased and services
5,623,412,196.31 3,798,790,421.03
received
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank
deposit
Cash payments for insurance indemnities of original
insurance contracts
Net increase of loans to others
Cash payments for interest, handling charges and
commission
Cash payments for policy bonus
Cash paid to and on behalf of employees 1,032,523,887.01 787,203,766.37
Cash payments for taxes and rates 618,388,114.66 522,757,776.92
Other cash payments related to operating activities 146,641,660.62 192,194,712.71
Subtotal of cash outflows from operating activities 7,420,965,858.60 5,300,946,677.03
Net cash flows from operating activities 1,242,456,738.20 2,289,637,496.69
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 37,221,964.90 37,215,654.69
Net cash receipts from the disposal of fixed assets,
4,153,451.64 8,502,600.00
intangible assets and other long-term assets
50
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2022 Semi-Annual 2021 Semi-Annual
Net cash receipts from the disposal of subsidiaries &
other business units
Other cash receipts related to investing activities 1,827,718,300.54 1,800,000,000.00
Subtotal of cash inflows from investing activities 1,869,093,717.08 1,845,718,254.69
Cash payments for the acquisition of fixed assets,
1,801,063,585.84 1,326,743,700.31
intangible assets and other long-term assets
Cash payments for investments
Net increase of pledged borrowings
Net cash payments for the acquisition of subsidiaries
5,485,385.14 83,904,479.79
& other business units
Other cash payments related to investing activities 1,136,474,731.36 1,520,000,000.00
Subtotal of cash outflows from investing activities 2,943,023,702.34 2,930,648,180.10
Net cash flows from investing activities -1,073,929,985.26 -1,084,929,925.41
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Including: Cash received by subsidiaries from non-
controlling shareholders as investments
Cash receipts from borrowings 3,790,379,237.43 4,130,981,309.28
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 3,790,379,237.43 4,130,981,309.28
Cash payments for the repayment of borrowings 1,249,162,336.86 2,095,709,235.89
Cash payments for distribution of dividends or profits
1,963,178,314.75 1,680,134,920.84
and for interest expenses
Including: Cash paid by subsidiaries to non-
controlling shareholders as dividend or profit
Other cash payments related to financing activities 3,882,331.56 3,363,407.69
Subtotal of cash outflows from financing activities 3,216,222,983.17 3,779,207,564.42
Net cash flows from financing activities 574,156,254.26 351,773,744.86
IV. Effect of foreign exchange rate changes on cash &
-5,511,976.27 -43,624,594.66
cash equivalents
V. Net increase in cash and cash equivalents 737,171,030.93 1,512,856,721.48
Add: Opening balance of cash and cash equivalents 5,714,537,538.23 4,669,306,776.09
VI. Closing balance of cash and cash equivalents 6,451,708,569.16 6,182,163,497.57
6. Parent company cash flow statement
Unit: RMB Yuan
Items 2022 Semi-Annual 2021 Semi-Annual
I. Cash flows from operating activities:
Cash receipts from sale of goods and rendering of
2,052,435,852.98 2,552,072,193.45
services
Receipts of tax refund 45,449,735.20 48,584,987.43
Other cash receipts related to operating activities 87,918,046.65 84,964,666.40
Subtotal of cash inflows from operating activities 2,185,803,634.83 2,685,621,847.28
Cash payments for goods purchased and services
1,208,399,552.39 1,633,400,198.22
received
Cash paid to and on behalf of employees 195,470,414.48 149,783,536.93
Cash payments for taxes and rates 93,367,767.02 78,513,703.83
Other cash payments related to operating activities 55,099,073.01 55,045,354.56
Subtotal of cash outflows from operating activities 1,552,336,806.90 1,916,742,793.54
51
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items 2022 Semi-Annual 2021 Semi-Annual
Net cash flows from operating activities 633,466,827.93 768,879,053.74
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 52,285,594.53 1,162,849,287.12
Net cash receipts from the disposal of fixed assets,
intangible assets and other long-term assets
Net cash receipts from the disposal of subsidiaries &
other business units
Other cash receipts related to investing activities 3,520,172,480.03 4,883,233,008.66
Subtotal of cash inflows from investing activities 3,572,458,074.56 6,046,082,295.78
Cash payments for the acquisition of fixed assets,
2,828,025.55 2,560,544.11
intangible assets and other long-term assets
Cash payments for investments 50,000,000.00 660,000,000.00
Net cash payments for the acquisition of subsidiaries
& other business units
Other cash payments related to investing activities 3,014,522,667.74 4,589,000,000.00
Subtotal of cash outflows from investing activities 3,067,350,693.29 5,251,560,544.11
Net cash flows from investing activities 505,107,381.27 794,521,751.67
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings 2,040,000,000.00 3,055,061,200.00
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 2,040,000,000.00 3,055,061,200.00
Cash payments for the repayment of borrowings 689,759,400.00 1,419,380,427.30
Cash payments for distribution of dividends or profits
1,878,276,172.00 1,588,570,689.93
and for interest expenses
Other cash payments related to financing activities 1,266,518.81 2,810,055.12
Subtotal of cash outflows from financing activities 2,569,302,090.81 3,010,761,172.35
Net cash flows from financing activities -529,302,090.81 44,300,027.65
IV. Effect of foreign exchange rate changes on cash and
806,094.12 -8,249,728.64
cash equivalents
V. Net increase in cash and cash equivalents 610,078,212.51 1,599,451,104.42
Add: Opening balance of cash and cash equivalents 4,191,863,033.83 2,593,272,980.50
VI. Closing balance of cash and cash equivalents 4,801,941,246.34 4,192,724,084.92
52
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
7. Consolidated statement of changes in equity
Current period cumulative
Unit: RMB Yuan
2022 Semi-Annual
Equity attributable to parent company
Items Non-
Other equity instruments Less: Other General
Special Surplus controlling Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk Undistributed profit Others Subtotal interest
Others reserve reserve
shares bonds shares income reserve
I. Balance at the end of
2,578,394,760.00 4,121,063,080.96 320,360,784.48 -1,614,172.31 12,692,218.51 1,289,197,380.00 14,152,465,528.17 21,831,838,010.85 63,730,851.41 21,895,568,862.26
prior year
Add: Cumulative changes
of accounting policies
Error correction of
prior period
Business combination
under common control
Others
II. Balance at the
2,578,394,760.00 4,121,063,080.96 320,360,784.48 -1,614,172.31 12,692,218.51 1,289,197,380.00 14,152,465,528.17 21,831,838,010.85 63,730,851.41 21,895,568,862.26
beginning of current year
III. Current period
increase (or less: 512,512,596.00 -507,468,870.48 179,698,926.77 32,251,478.10 4,449,092.88 420,083,330.45 282,128,700.18 10,105,999.45 292,234,699.63
decrease)
(I) Total comprehensive
32,251,478.10 2,213,877,419.25 0 2,246,128,897.35 10,105,999.45 2,256,234,896.80
income
(II) Capital contributed or
179,698,926.77 -179,698,926.77 -179,698,926.77
withdrawn by owners
1. Ordinary shares
contributed by owners
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment included in
equity
4. Others 179,698,926.77 -179,698,926.77 -179,698,926.77
(III) Profit distribution -1,793,794,088.80 -1,793,794,088.80 -1,793,794,088.80
1. Appropriation of
surplus reserve
53
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2022 Semi-Annual
Equity attributable to parent company
Items Non-
Other equity instruments Less: Other General
Special Surplus controlling Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk Undistributed profit Others Subtotal interest
Others reserve reserve
shares bonds shares income reserve
2. Appropriation of
general risk reserve
3. Appropriation of profit
-1,793,794,088.80 -1,793,794,088.80 -1,793,794,088.80
to owners
4. Others
(IV) Internal carry-over
512,512,596.00 -512,512,596.00
within equity
1. Transfer of capital
512,512,596.00 -512,512,596.00
reserve to capital
2. Transfer of surplus
reserve to capital
3. Surplus reserve to
cover losses
4. Changes in defined
benefit plan carried over
to retained earnings
5. Other comprehensive
income carried over to
retained earnings
6. Others
(V) Special reserve 4,449,092.88 4,449,092.88 4,449,092.88
1. Appropriation of
13,360,150.22 13,360,150.22 13,360,150.22
current period
2. Application of current
-8,911,057.34 -8,911,057.34 -8,911,057.34
period
(VI) Others 5,043,725.52 5,043,725.52 5,043,725.52
IV. Balance at the end of
3,090,907,356.00 3,613,594,210.48 500,059,711.25 30,637,305.79 17,141,311.39 1,289,197,380.00 14,572,548,858.62 22,113,966,711.03 73,836,850.86 22,187,803,561.89
current period
54
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Preceding period comparative
Unit: RMB Yuan
2021 Semi-Annual
Equity attributable to parent company
Items Non-
Other equity instruments Less: Other General
Special Surplus controlling Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk Undistributed profit Others Subtotal interest
Others reserve reserve
shares bonds shares income reserve
I. Balance at the end of prior
2,148,662,300.00 4,560,522,556.84 27,803,829.31 9,550,346.85 1,074,331,150.00 11,515,384,739.95 19,336,254,922.95 67,576,527.03 19,403,831,449.98
year
Add: Cumulative changes of
accounting policies
Error correction of prior
period
Business combination under
common control
Others
II. Balance at the beginning of
2,148,662,300.00 4,560,522,556.84 27,803,829.31 9,550,346.85 1,074,331,150.00 11,515,384,739.95 19,336,254,922.95 67,576,527.03 19,403,831,449.98
current year
III. Current period increase (or -
429,732,460.00 -429,732,460.00 2,092,131.78 922,915,538.42 913,605,220.81 -7,822,068.98 905,783,151.83
less: decrease) 11,402,449.39
-
(I) Total comprehensive income 2,426,979,148.42 2,415,576,699.03 5,359,764.02 2,420,936,463.05
11,402,449.39
(II) Capital contributed or
withdrawn by owners
1. Ordinary shares contributed
by owners
2. Capital contributed by holders
of other equity instruments
3. Amount of share-based
payment included in equity
4. Others
-
(III) Profit distribution -1,504,063,610.00 -1,504,063,610.00 -1,517,245,443.00
13,181,833.00
1. Appropriation of surplus
reserve
2. Appropriation of general risk
reserve
3. Appropriation of profit to -
-1,504,063,610.00 -1,504,063,610.00 -1,517,245,443.00
owners 13,181,833.00
55
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2021 Semi-Annual
Equity attributable to parent company
Items Non-
Other equity instruments Less: Other General
Special Surplus controlling Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk Undistributed profit Others Subtotal interest
Others reserve reserve
shares bonds shares income reserve
4. Others
(IV) Internal carry-over within
429,732,460.00 -429,732,460.00
equity
1. Transfer of capital reserve to
429,732,460.00 -429,732,460.00
capital
2. Transfer of surplus reserve to
capital
3. Surplus reserve to cover
losses
4. Changes in defined benefit
plan carried over to retained
earnings
5. Other comprehensive income
carried over to retained earnings
6. Others
(V) Special reserve 2,092,131.78 2,092,131.78 2,092,131.78
1. Appropriation of current
5,948,742.71 5,948,742.71 5,948,742.71
period
2. Application of current period -3,856,610.93 -3,856,610.93 -3,856,610.93
(VI) Others
IV. Balance at the end of current
2,578,394,760.00 4,130,790,096.84 16,401,379.92 11,642,478.63 1,074,331,150.00 12,438,300,278.37 20,249,860,143.76 59,754,458.05 20,309,614,601.81
period
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
8. Parent company statements of changes in equity
Current period cumulative
Unit: RMB Yuan
2022 Semi-Annual
Other equity instruments Other
Items Less: Treasury Special Undistributed
Share capital Preferred Perpetual Capital reserve comprehensive Surplus reserve Others Total equity
Others shares reserve profit
shares bonds income
I. Balance at the end of prior year 2,578,394,760.00 3,861,393,399.57 320,360,784.48 506,954.43 1,289,197,380.00 5,886,750,011.71 13,295,881,721.23
Add: Cumulative changes of
accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current
2,578,394,760.00 3,861,393,399.57 320,360,784.48 506,954.43 1,289,197,380.00 5,886,750,011.71 13,295,881,721.23
year
III. Current period increase (or less: -
512,512,596.00 -507,468,870.48 179,698,926.77 -1,710,421,420.44
decrease) 1,535,766,219.19
(I) Total comprehensive income 258,027,869.61 258,027,869.61
(II) Capital contributed or withdrawn
179,698,926.77 -179,698,926.77
by owners
1. Ordinary shares contributed by
owners
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
included in equity
4. Others 179,698,926.77 -179,698,926.77
-
(III) Profit distribution -1,793,794,088.80
1,793,794,088.80
1. Appropriation of surplus reserve
-
2. Appropriation of profit to owners -1,793,794,088.80
1,793,794,088.80
3. Others
(IV) Internal carry-over within equity 512,512,596.00 -512,512,596.00
1. Transfer of capital reserve to capital 512,512,596.00 -512,512,596.00
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2022 Semi-Annual
Other equity instruments Other
Items Less: Treasury Special Undistributed
Share capital Preferred Perpetual Capital reserve comprehensive Surplus reserve Others Total equity
Others shares reserve profit
shares bonds income
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan
carried over to retained earnings
5. Other comprehensive income carried
over to retained earnings
6. Others
(V) Special reserve
1. Appropriation of current period
2. Application of current period
(VI) Others 5,043,725.52 5,043,725.52
IV. Balance at the end of current period 3,090,907,356.00 3,353,924,529.09 500,059,711.25 506,954.43 1,289,197,380.00 4,350,983,792.52 11,585,460,300.79
Preceding period comparative
Unit: RMB Yuan
2021 Semi-Annual
Other equity instruments Less: Other
Items Special Undistributed
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Others Total equity
Others reserve profit
shares bonds shares income
I. Balance at the end of prior year 2,148,662,300.00 4,300,852,875.45 506,954.43 1,074,331,150.00 5,298,464,883.45 12,822,818,163.33
Add: Cumulative changes of accounting
policies
Error correction of prior period
Others
II. Balance at the beginning of current year 2,148,662,300.00 4,300,852,875.45 506,954.43 1,074,331,150.00 5,298,464,883.45 12,822,818,163.33
III. Current period increase (or less: decrease) 429,732,460.00 -429,732,460.00 372,628,718.82 372,628,718.82
(I) Total comprehensive income 1,876,692,328.82 1,876,692,328.82
(II) Capital contributed or withdrawn by
owners
1. Ordinary shares contributed by owners
58
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2021 Semi-Annual
Other equity instruments Less: Other
Items Special Undistributed
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Others Total equity
Others reserve profit
shares bonds shares income
2. Capital contributed by holders of other
equity instruments
3. Amount of share-based payment included
in equity
4. Others
-
(III) Profit distribution -1,504,063,610.00
1,504,063,610.00
1. Appropriation of surplus reserve
-
2. Appropriation of profit to owners -1,504,063,610.00
1,504,063,610.00
3. Others
(IV) Internal carry-over within equity 429,732,460.00 -429,732,460.00
1. Transfer of capital reserve to capital 429,732,460.00 -429,732,460.00
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried
over to retained earnings
5. Other comprehensive income carried over
to retained earnings
6. Others
(V) Special reserve
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current period 2,578,394,760.00 3,871,120,415.45 506,954.43 1,074,331,150.00 5,671,093,602.27 13,195,446,882.15
59
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
III. Company profile
Zhejiang NHU Co., Ltd. (the “Company”) was jointly established by 新昌县合成化工厂 (Xinchang County Synthetic Chemical Plant,
renamed as NHU Holding Group Co., Ltd. on November 17, 2009) and 9 natural persons including Zhang Pingyi, Yuan Yizhong, Shi
Cheng, Hu Baishan, Shi Guanqun, Wang Xuewen, 石三夫 (Shi Sanfu), Cui Xinrong, and Wang Xulin under the document of approval
numbered Zhe Zheng Wei [1999] 9 issued by the former Securities Commission of the People’s Government of Zhejiang Province.
Headquartered in Shaoxing City, Zhejiang Province, the Company was registered at Zhejiang Administration for Industry and
Commerce on April 5, 1999. Currently, the Company holds a business license with unified social credit code of 91330000712560575G,
with registered capital of 3,090,907,356.00 yuan, total share of 3,090,907,356 shares (each with par value of one yuan), of which,
36,374,202 shares are restricted outstanding shares, and 3,054,533,154 shares are unrestricted outstanding shares. The Company’s
shares were listed on Shenzhen Stock Exchange on June 25, 2004.
The Company belongs to pharmaceutical manufacturing industry and is mainly engaged in manufacturing and sales of nutrition, flavor
and fragrance, and new polymer materials. The Company’s main products are nutrition, flavor and fragrance, new polymer materials
and API.
The financial statements were approved and authorized for issue by the twelfth meeting of the eighth session of the Board of Directors
dated August 22, 2022.
The Company has brought 27 subsidiaries including Xinchang NHU Vitamins Co., Ltd., Zhejiang NHU Import & Export Co., Ltd., 浙
江维尔新动物营养保健品有限公司 (Zhejiang Vityesun Animal Nutrition and Health Co., Ltd.*), etc. into the consolidation scope.
Please refer to item VIII and IX of this section for details.
IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. The ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going concern
within the 12 months after the balance sheet date.
V. Significant accounting policies and estimates
Note to specific accounting policies and estimates: The Company has set up accounting policies and estimates on transactions or events
such as impairment of financial instruments, depreciation of fixed assets, depreciation of right-of-use assets, amortization of intangible
assets, and revenue recognition, etc. based on the Company’s actual production and operation features.
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business
Enterprises (CASBEs), and present truly and completely the financial position, results of operations and cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
The English names are for identification purpose only.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
3. Operating cycle
Except for the real estate industry, the Company has a relatively short operating cycle for its business, an asset or a liability is classified
as current if it is expected to be realized or due within 12 months. The operating cycle for real estate industry starts from the
development of property and ends at sales, which normally extends over 12 months and is subject to specific projects, therefore, an
asset or a liability is classified as current if it is expected to be realized or due within such operating cycle.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan, while the functional currency of
subsidiaries engaged in overseas operations including NHU (Hong Kong) Trading Co., Ltd., NHU Europe GmbH and NHU Singapore
PTE. LTD. is the currency of the primary economic environment in which they operate.
5. Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in the
consolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount of the
equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of the
combination consideration or total par value of shares issued is adjusted to capital reserve, if the balance of capital reserve is insufficient
to offset, any excess is adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date, the
excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and the
measurement of the combination cost are reviewed, then the difference is recognized in profit or loss.
6. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated financial statements are
compiled by the parent company according to “CASBE 33 – Consolidated Financial Statements”, based on relevant information and
the financial statements of the parent company and its subsidiaries.
7. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash equivalents refer to short-
term, highly liquid investments that can be readily converted to cash and that are subject to an insignificant risk of changes in value.
8. Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the approximate exchange rate similar to the spot
exchange rate at the transaction date at initial recognition. At the balance sheet date, monetary items denominated in foreign currency
are translated at the spot exchange rate at the balance sheet date with difference, except for those arising from the principal and interest
of exclusive borrowings eligible for capitalization, included in profit or loss; non-cash items carried at historical costs are translated at
the approximate exchange rate similar to the spot exchange rate at the transaction date, with the RMB amounts unchanged; non-cash
items carried at fair value in foreign currency are translated at the spot exchange rate at the date when the fair value was determined,
with difference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot rate at the balance sheet date; the equity items, other
than undistributed profit, are translated at the spot rate at the transaction date; the revenues and expenses in the income statement are
translated into RMB at the approximate exchange rate similar to the spot exchange rate at the transaction date. The difference arising
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
from the aforementioned foreign currency 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 when initially recognized: (1) financial assets at amortized cost; (2)
financial assets at fair value through other comprehensive income; (3) financial assets at fair value through profit or loss.
Financial liabilities are classified into the following four categories when initially recognized: (1) financial liabilities at fair value
through profit or loss; (2) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when
the continuing involvement approach applies; (3) financial guarantee contracts not fall within the above categories (1) and (2), and
commitments to provide a loan at a below-market interest rate, which do not fall within the above category (1); (4) financial liabilities
at amortized cost.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial liability. The financial
assets and financial liabilities initially recognized by the Company are measured at fair value; for the financial assets and liabilities at
fair value through profit or loss, the transaction expenses thereof are directly included in profit or loss; for other categories of financial
assets and financial liabilities, the transaction expenses thereof are included into the initially recognized amount. However, at initial
recognition, for accounts receivable that do not contain a significant financing component or in circumstances where the Company
does not consider the financing components in contracts within one year, the Company measures the transaction price in accordance
with “CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method. Gains or losses on financial assets
that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the financial
assets are derecognized, reclassified, amortized using effective interest method or recognized with impairment loss.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests, impairment gains or losses, and gains and losses on
foreign exchange that calculated using effective interest method shall be included into profit or loss, while other gains or losses are
included into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive income should
be transferred out into profit or loss when the financial assets are derecognized.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than those as part of investment cost
recovery) shall be included into profit or loss, while other gains or losses are included into other comprehensive income. Accumulated
gains or losses that initially recognized as other comprehensive income should be transferred out into retained earnings when the
financial assets are derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value (including interests and
dividends) shall be included into profit or loss, except for financial assets that are part of hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including derivatives that are
liabilities) and financial liabilities designated as at fair value through profit or loss. The Company measures such kind of liabilities at
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fair value. The amount of changes in the fair value of the financial liabilities that are attributable to changes in the Company’s own
credit risk shall be included into other comprehensive income, unless such treatment would create or enlarge accounting mismatches
in profit or loss. Other gains or losses on those financial liabilities (including interests, changes in fair value that are attributable to
reasons other than changes in the Company’s own credit risk) shall be included into profit or loss, except for financial liabilities that
are part of hedging relationships. Accumulated gains or losses that originally recognized as other comprehensive income should be
transferred out into retained earnings when the financial liabilities are derecognized.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies
The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments to provide a loan at a below-market
interest rate, which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance with impairment
requirements of financial instruments; b. the amount initially recognized less the amount of accumulated amortization recognized in
accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses on financial liabilities
that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the financial
liabilities are derecognized and amortized using effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; or
b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with “CASBE 23 – Transfer of
Financial Assets”.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial liability be
derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial asset, it
derecognizes the financial asset, and any right or liability arising from such transfer is recognized independently as an asset or a liability.
If it retained substantially all of the risks and rewards related to the ownership of the financial asset, it continues recognizing the
financial asset. Where the Company does not transfer or retain substantially all of the risks and rewards related to the ownership of a
financial asset, it is dealt with according to the circumstances as follows respectively: (1) if the Company does not retain its control
over the financial asset, it derecognizes the financial asset, and any right or liability arising from such transfer is recognized
independently as an asset or a liability; (2) if the Company retains its control over the financial asset, according to the extent of its
continuing involvement in the transferred financial asset, it recognizes the related financial asset and recognizes the relevant liability
accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the following
two items is included in profit or loss: (1) the carrying amount of the transferred financial asset as of the date of derecognition; (2) the
sum of consideration received from the transfer of the financial asset, and the accumulative amount of the changes of the fair value
originally included in other comprehensive income proportionate to the transferred financial asset (financial assets transferred refer to
debt instrument investments at fair value through other comprehensive income). If the transfer of financial asset partially satisfies the
conditions to derecognition, the entire carrying amount of the transferred financial asset is, between the portion which is derecognized
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and the portion which is not, apportioned according to their respective relative fair value, and the difference between the amounts of
the following two items is included into profit or loss: (1) the carrying amount of the portion which is derecognized; (2) the sum of
consideration of the portion which is derecognized, and the portion of the accumulative amount of the changes in the fair value
originally included in other comprehensive income which is corresponding to the portion which is derecognized (financial assets
transferred refer to debt instrument investments at fair value through other comprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and information are
available to measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following hierarchy
and used accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the
measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar
assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability, for example,
interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable and cannot
be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paid to fulfill the
disposal obligation assumed in business combination, financial forecast developed using the Company’s own data, etc.
5. Impairment of financial instruments
(1) Measurement and accounting treatment
The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets at amortized cost, debt instrument
investments at fair value through other comprehensive income, contract assets, leases receivable, loan commitments other than financial
liabilities at fair value through profit or loss, financial guarantee contracts not belong to financial liabilities at fair value through profit
or loss or financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies.
Expected credit losses refer to the weighted average of credit losses with the respective risks of a default occurring as the weights.
Credit loss refers to the difference between all contractual cash flows that are due to the Company in accordance with the contract and
all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate. Among
which, purchased or originated credit-impaired financial assets are discounted at the credit-adjusted effective interest rate.
At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expected credit losses since initial
recognition as a loss allowance for purchased or originated credit-impaired financial assets.
For leases receivable, and accounts receivable and contract assets resulting from transactions regulated in “CASBE 14 – Revenues”,
the Company chooses simplified approach to measure the loss allowance at an amount equal to lifetime expected credit losses.
For financial assets other than the above, on each balance sheet date, the Company shall assess whether the credit risk on the financial
instrument has increased significantly since initial recognition. The Company shall measure the loss allowance for the financial
instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased
significantly since initial recognition; otherwise, the Company shall measure the loss allowance for that financial instrument at an
amount equal to 12-month expected credit loss.
Considering reasonable and supportable forward-looking information, the Company compares the risk of a default occurring on the
financial instrument as at the balance sheet date with the risk of a default occurring on the financial instrument as at the date of initial
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recognition, so as to assess whether the credit risk on the financial instrument has increased significantly since initial recognition.
The Company may assume that the credit risk on a financial instrument has not increased significantly since initial recognition if the
financial instrument is determined to have relatively low credit risk at the balance sheet date.
The Company shall estimate expected credit risk and measure expected credit losses on an individual or a collective basis. When the
Company adopts the collective basis, financial instruments are grouped with similar credit risk features.
The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversed amounts of loss allowance
arising therefrom shall be included into profit or loss as impairment losses or gains. For a financial asset measured at amortized cost,
the loss allowance reduces the carrying amount of such financial asset presented in the balance sheet; for a debt investment measured
at fair value through other comprehensive income, the loss allowance shall be recognized in other comprehensive income and shall not
reduce the carrying amount of such financial asset.
(2) Financial instruments with expected credit risk assessed and expected credit losses measured on a collective basis
Items Basis for determination of portfolio Method for measuring expected credit loss
Other receivables – Portfolio grouped with
export tax refund receivable
Other receivables – Portfolio grouped with
Based on historical credit loss experience, the
VAT refund receivable
Nature of receivables current situation and the forecast of future
Other receivables – Portfolio grouped with
economic conditions, the Company calculates
land bond receivable
expected credit loss through exposure at
Other receivables – Portfolio grouped with
default and 12-month or lifetime expected
deposits receivable from customs and tax
credit loss rate.
authorities
Other receivables – Portfolio grouped with Ages
ages
(3) Accounts receivable and contract assets with expected credit losses measured on a collective basis
1) Specific portfolios and method for measuring expected credit loss
Items Basis for determination of portfolio Method for measuring expected credit loss
Based on historical credit loss experience, the
Bank acceptance receivable
current situation and the forecast of future
Type of notes economic conditions, the Company calculates
Trade acceptance receivable expected credit loss through exposure at
default and lifetime expected credit loss rate.
Based on historical credit loss experience, the
current situation and the forecast of future
Accounts receivable – Portfolio grouped Ages economic conditions, the Company prepares the
with ages comparison table of ages and lifetime expected
credit loss rate of accounts receivable, so as to
calculate expected credit loss.
2) Accounts receivable – comparison table of ages and lifetime expected credit loss rate of portfolio grouped with ages
Ages Expected credit loss rate (%)
Within 1 year (inclusive, the same hereinafter) 5
1-2 years 20
2-3 years 80
Over 3 years 100
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However, the Company offsets
a financial asset and a financial liability and presents the net amount in the balance sheet when, and only when, the Company: (1)
currently has a legally enforceable right to set off the recognized amounts; and (2) intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously.
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For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset the transferred asset and the
associated liability.
10. Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the process of production,
materials or supplies, etc. to be consumed in the production process or in the rendering of services.
2. Accounting method for dispatching inventories:
Inventories dispatched from storage are accounted for with weighted average method at the end of each month.
3. Basis for determining net realizable value
At the balance sheet date, inventories are measured at the lower of cost and net realizable value; provisions for inventory write-down
are made on the excess of its cost over the net realizable value. The net realizable value of inventories held for sale is determined based
on the amount of the estimated selling price less the estimated selling expenses and relevant taxes and surcharges in the ordinary course
of business; the net realizable value of materials to be processed is determined based on the amount of the estimated selling price less
the estimated costs of completion, selling expenses and relevant taxes and surcharges in the ordinary course of business; at the balance
sheet date, when only part of the same item of inventories have agreed price, their net realizable value are determined separately and
are compared with their costs to set the provision for inventory write-down to be made or reversed.
4. Inventory system
Perpetual inventory method is adopted.
5. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with one-off method.
(2) Packages
Packages are amortized with one-off method.
11. Contract assets, contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between its performance
obligations and customers’ payments. Contract assets and contract liabilities under the same contract shall offset each other and be
presented on a net basis.
The Company presents an unconditional right to consideration (i.e., only the passage of time is required before the consideration is due)
as a receivable, and presents a right to consideration in exchange for goods that it has transferred to a customer (which is conditional
on something other than the passage of time) as a contract asset.
The Company presents an obligation to transfer goods to a customer for which the Company has received consideration (or the amount
is due) from the customer as a contract liability.
12. Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial
and operating policy decisions of the investee but is not control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it makes payment in cash,
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transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of combination, it regards the share of the
carrying amount of the equity of the combined party included in the consolidated financial statements of the ultimate controlling party
as the initial cost of the investment. The difference between the initial cost of the long-term equity investments and the carrying amount
of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
When long-term equity investments are obtained through business combination under common control achieved in stages, the Company
determines whether it is a “bundled transaction”. If it is a “bundled transaction”, stages as a whole are considered as one transaction in
accounting treatment. If it is not a “bundled transaction”, on the date of combination, investment cost is initially recognized at the share
of the carrying amount of net assets of the combined party included the consolidated financial statements of the ultimate controlling
party. The difference between the initial investment cost of long-term equity investments at the acquisition date and the carrying amount
of the previously held long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity
is adjusted to capital reserve; if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value of
considerations paid.
When long-term equity investments are obtained through business combination not under common control achieved in stages, the
Company determined whether they are stand-alone financial statements or consolidated financial statements in accounting treatment:
1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of the previously held
long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.
2) In the case of consolidated financial statements, the Company determines whether it is a “bundled transaction”. If it is a “bundled
transaction”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction”, the
carrying amount of the acquirer’s previously held equity interest in the acquiree is remeasured at the acquisition-date fair value, and
the difference between the fair value and the carrying amount is recognized in investment income; when the acquirer’s previously held
equity interest in the acquiree involves other comprehensive income under equity method, the related other comprehensive income is
reclassified as income for the acquisition period, excluding other comprehensive income arising from changes in net liabilities or assets
from remeasurement of defined benefit plan of the acquiree.
(3) Long-term equity investments obtained through ways other than business combination: the initial cost of a long-term equity
investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuing equity
securities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according to “CASBE
12 – Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE 7 – Non-cash
Assets Exchange”.
3. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method; for long-term equity investments with
joint control or significant influence relationship, it is accounted for with equity method.
4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
(1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is recognized in profit or
loss. If the disposal does not result in the Company’s loss of significant influence or joint control, the remained equity is accounted for
with equity method; however, if the disposal results in the Company’s loss of control, joint control, or significant influence, the
remained equity is accounted for according to “CASBE 22 – Financial Instruments: Recognition and Measurement”.
(2) Consolidated financial statements
1) Disposal of a subsidiary in stages not qualified as “bundled transaction” resulting in the Company’s loss of control
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Before the Company’s loss of control, the difference between the disposal consideration and the proportionate share of net assets in
the disposed subsidiary from acquisition date or combination date to the disposal date is adjusted to capital reserve (capital premium),
if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When the Company loses control, the remained equity is remeasured at the loss-of-control-date fair value. The aggregated value of
disposal consideration and the fair value of the remained equity, less the share of net assets in the disposed subsidiary held before the
disposal from the acquisition date or combination date to the disposal date is recognized in investment income in the period when the
Company loses control over such subsidiary, and meanwhile goodwill is offset correspondingly. Other comprehensive income related
to equity investments in former subsidiary is reclassified as investment income upon the Company’s loss of control.
2) Disposal of a subsidiary in stages qualified as “bundled transaction” resulting in the Company’s loss of control
In case of “bundled transaction”, stages as a whole are considered as one transaction resulting in loss of control in accounting treatment.
However, before the Company loses control, the difference between the disposal consideration at each stage and the proportionate
share of net assets in the disposed subsidiary is recognized as other comprehensive income at the consolidated financial statements and
reclassified as profit or loss in the period when the Company loses control over such subsidiary.
13. Fixed assets
(1) Recognition principles
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental to others, or for administrative
purposes, and expected to be used during more than one accounting year. Fixed assets are recognized if, and only if, it is probable that
future economic benefits associated with the assets will flow to the Company and the cost of the assets can be measured reliably.
(2) Depreciation method
Categories Depreciation method Useful life Residual value Annual depreciation rate
(years) proportion (%) (%)
Buildings and structures Straight-line method 7-35 5 13.57-2.71
General equipment Straight-line method 5-10 5 19.00-9.50
Special equipment Straight-line method 5-15 5 19.00-6.33
Transport facilities Straight-line method 5-7 5 19.00-13.57
(3) Recognition basis, measurement and depreciation method of fixed assets leased in finance leases
None.
14. Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits associated with the item will flow
to the Company, and the cost of the item can be measured reliably. Construction in progress is measured at the actual cost incurred to
reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable conditions. When the
auditing of the construction in progress was not finished while reaching the designed usable conditions, it is transferred to fixed assets
using estimated value first, and then adjusted accordingly when the actual cost is settled, but the accumulated depreciation is not to be
adjusted retrospectively.
15. Borrowing costs
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization, it is capitalized and included in the costs of relevant assets; other borrowing costs are recognized as
expenses on the basis of the actual amount incurred, and are included in profit or loss.
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2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless the following requirements are all met: 1) the asset disbursements have already
incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or production activities which are
necessary to prepare the asset for its intended use or sale have already started.
(2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is interrupted abnormally
and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs is suspended; the borrowing costs
incurred during such period are recognized as expenses, and are included in profit or loss, till the acquisition and construction or
production of the asset restarts.
(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready for the intended use or
sale, the capitalization of the borrowing costs is ceased.
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization, the to-be-capitalized
amount of interests is determined in light of the actual interest expenses incurred (including amortization of premium or discount based
on effective interest method) of the special borrowings in the current period less the interest income on the unused borrowings as a
deposit in the bank or as a temporary investment; where a general borrowing is used for the acquisition and construction or production
of assets eligible for capitalization, the Company calculates and determines the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements less the general
borrowing by the capitalization rate of the general borrowing used.
16. Intangible assets
(1) Measurement method, useful lives and impairment test
1. Intangible assets include land use right, patent right, non-patented technology, etc. The initial measurement of intangible assets is
based on its cost.
2. For intangible assets with finite useful lives, their amortization amounts are amortized within their useful lives systematically and
reasonably, if it is unable to determine the expected realization pattern reliably, intangible assets are amortized by the straight-line
method with details as follows:
Items Amortization period (years)
Land use right 50, 70
Software 10
Patent right 10
Non-patented technology 15
(2) Accounting policies on internal R&D expenditures
Expenditures on the research phase of an internal project are recognized as profit or loss when they are incurred. An intangible asset
arising from the development phase of an internal project is recognized if the Company can demonstrate all of the followings: (1) the
technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention to complete the
intangible asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits, among other things, the
Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be
used internally, the usefulness of the intangible asset; (4) the availability of adequate technical, financial and other resources to complete
the development and to use or sell the intangible asset; and (5) its ability to measure reliably the expenditure attributable to the intangible
asset during its development.
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17. Impairment of part of long-term assets
For long-term assets such as long-term equity investments, fixed assets, construction in progress, right-of-use assets, intangible assets
with finite useful lives, etc., if at the balance sheet date there is indication of impairment, the recoverable amount is to be estimated.
For goodwill recognized in business combination and intangible assets with indefinite useful lives, no matter whether there is indication
of impairment, impairment test is performed annually. Impairment test on goodwill is performed on related asset group or asset group
portfolio.
When the recoverable amount of such long-term assets is lower than their carrying amount, the difference is recognized as provision
for assets impairment through profit or loss.
18. Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year (excluding one year). They
are recorded with actual cost, and evenly amortized within the beneficiary period or stipulated period. If items of long-term prepayments
fail to be beneficial to the following accounting periods, residual values of such items are included in profit or loss.
19. Employee benefits
(1) Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-term employee benefits actually
incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution payable to a defined
contribution plan as a liability, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial assumptions to estimate
related demographic variables and financial variables, measure the obligations under the defined benefit plan, and determine the periods
to which the obligations are attributed. Meanwhile, the Company discounts obligations under the defined benefit plan to determine the
present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the fair value of defined benefit
plan assets from the present value of the defined benefit plan obligation as a net defined benefit plan liability or net defined benefit
plan asset. When a defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at the lower of the
surplus in the defined benefit plan and the asset ceiling;
3) At the end of the period, the Company recognizes the following components of employee benefits cost arising from defined benefit
plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. changes as a result of remeasurement of the
net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevant asset. Item c is recognized
in other comprehensive income and is not to be reclassified subsequently to profit or loss. However, the Company may transfer those
amounts recognized in other comprehensive income within equity.
(3) Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits, with a
corresponding charge to profit or loss at the earlier of the following dates: a. when the Company cannot unilaterally withdraw the offer
of termination benefits because of an employment termination plan or a curtailment proposal; or b. when the Company recognizes cost
or expenses related to a restructuring that involves the payment of termination benefits.
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(4) Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a defined contribution
plan, those benefits are accounted for in accordance with the requirements relating to defined contribution plan, while other benefits
are accounted for in accordance with the requirements relating to defined benefit plan. The Company recognizes the cost of employee
benefits arising from other long-term employee benefits as the followings: a. service cost; b. net interest on the net liability or net assets
of other long-term employee benefits; and c. changes as a result of remeasurement of the net liability or net assets of other long-term
employee benefits. As a practical expedient, the net total of the aforesaid amounts is recognized in profit or loss or included in the cost
of a relevant asset.
20. Revenue
Accounting policies on revenue recognition and measurement
1. Revenue recognition principles
At contract inception, the Company shall assess the contracts and shall identify each performance obligation in the contracts, and
determine whether the performance obligation should be satisfied over time or at a point in time.
The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise, the performance obligation
is satisfied at a point in time: (1) the customer simultaneously receives and consumes the economic benefits provided by the Company’s
performance as the Company performs; (2) the customer can control goods as they are created by the Company’s performance; (3)
goods created during the Company’s performance have irreplaceable uses and the Company has an enforceable right to the payments
for performance completed to date during the whole contract period.
For each performance obligation satisfied over time, the Company shall recognize revenue over time by measuring the progress towards
complete satisfaction of that performance obligation. In the circumstance that the progress cannot be measured reasonably, but the
costs incurred in satisfying the performance obligation are expected to be recovered, the Company shall recognize revenue only to the
extent of the costs incurred until it can reasonably measure the progress. For each performance obligation satisfied at a point in time,
the Company shall recognize revenue at the time point that the customer obtains control of relevant goods or services. To determine
whether the customer has obtained control of goods, the Company shall consider the following indications: (1) the Company has a
present right to payment for the goods, i.e., the customer is presently obliged to pay for the goods; (2) the Company has transferred the
legal title of the goods to the customer, i.e., the customer has legal title to the goods; (3) the Company has transferred physical
possession of the goods to the customer, i.e., the customer has physically possessed the goods; (4) the Company has transferred
significant risks and rewards of ownership of the goods to the customer, i.e., the customer has obtained significant risks and rewards
of ownership of the goods; (5) the customer has accepted the goods; (6) other evidence indicating the customer has obtained control
over the goods.
2. Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation. The transaction price
is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer,
excluding amounts collected on behalf of third parties and those expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount, the Company shall confirm the best estimate of variable
consideration at expected value or the most likely amount. However, the transaction price that includes the amount of variable
consideration only to the extent that it is high probable that a significant reversal in the amount of cumulative revenue recognized will
not occur when the uncertainty associated with the variable consideration is subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component, the Company shall determine the transaction price
based on the price that a customer would have paid for if the customer had paid cash for obtaining control over those goods or services.
The difference between the transaction price and the amount of promised consideration is amortized under effective interest method
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over contractual period. The effects of a significant financing component shall not be considered if the Company expects, at the contract
inception, that the period between when the customer obtains control over goods or services and when the customer pays consideration
will be one year or less.
(4) For contracts containing two or more performance obligations, the Company shall determine the stand-alone selling price at contract
inception of the distinct good underlying each performance obligation and allocate the transaction price to each performance obligation
on a relative stand-alone selling price basis.
3. Revenue recognition method
(1) Revenue from sales of products
The Company’s main products are nutrition, flavor and fragrance, new polymer materials, etc. Sales of products are performance
obligations satisfied at a point in time. Revenue from domestic sales is recognized when the Company has delivered goods to the
customer as agreed by contract and has obtained delivery note signed by the customer, and the Company has collected the payments
or has obtained the right to the payments, and related economic benefits are highly probable to flow to the Company. Revenue from
overseas sales is recognized when the Company has declared goods to the customs based on contractual agreements and has obtained
a bill of lading, and the Company has collected the payments or has obtained the right to the payments, and related economic benefits
are highly probable to flow to the Company.
(2) Revenue from real estate sales
Real estate sales are performance obligations satisfied at a point in time. Revenue from real estate sales is recognized when the
Company has delivered properties to the customer as agreed by contract and has obtained the client acceptance receipts signed by the
customer, and the Company has collected the payments or has obtained the right to the payments, and related economic benefits are
highly probable to flow to the Company.
Differences in accounting policies on revenue recognition due to the adoption of different business models for similar businesses
None.
21. Government grants
1. Government grants shall be recognized if, and only if, the following conditions are all met: (1) the Company will comply with the
conditions attaching to the grants; (2) the grants will be received. Monetary government grants are measured at the amount received or
receivable. Non-monetary government grants are measured at fair value, and can be measured at nominal amount in the circumstance
that fair value cannot be assessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company constructs or otherwise acquires long-term assets
under requirements of government. In the circumstances that there is no specific government requirement, the Company shall determine
based on the primary condition to acquire the grants, and government grants related to assets are government grants whose primary
condition is to construct or otherwise acquire long-term assets. They offset carrying amount of relevant assets, or they are recognized
as deferred income. If recognized as deferred income, they are included in profit or loss on a systematic basis over the useful lives of
the relevant assets. Those measured at notional amount are directly included into profit or loss. For assets sold, transferred, disposed
or damaged within the useful lives, balance of unamortized deferred income is transferred into profit or loss of the period in which the
disposal occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. For government grants that contain both
parts related to assets and parts related to income, in which those two parts are blurred, they are thus collectively classified as
government grants related to income. For government grants related to income used for compensating the related future cost, expenses
or losses, they are recognized as deferred income and included in profit or loss or used to offset relevant cost during the period in which
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the relevant cost, expenses or losses are recognized; for government grants related to income used for compensating the related cost,
expenses or losses incurred to the Company, they are directly included in profit or loss or used to offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or used to offset relevant cost based
on business nature, while those not related to the ordinary course of business shall be included into non-operating revenue or
expenditures.
5. Policy interest subvention
(1) In the circumstance that government appropriates interest subvention to lending bank, who provides loans for the Company with a
policy subsidised interest rate, borrowings are carried at the amount received, with relevant borrowings cost computed based on the
principal and the policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company, the subsidised interest shall offset
relevant borrowing cost.
22. Deferred tax assets/Deferred tax liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the carrying amount and
tax base of assets and liabilities (and the difference of the carrying amount and tax base of items not recognized as assets and liabilities
but with their tax base being able to be determined according to tax laws) and in accordance with the tax rate applicable to the period
during which the assets are expected to be recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which is most likely to obtain and which can
be deducted from the deductible temporary difference. At the balance sheet date, if there is any exact evidence that it is probable that
future taxable income will be available against which deductible temporary differences can be utilized, the deferred tax assets
unrecognized in prior periods are recognized.
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a deferred tax asset is
reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow the benefit of the deferred
tax asset to be utilized. Such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable income
will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit or loss, excluding those
arising from the following circumstances: (1) business combination; and (2) the transactions or items directly recognized in equity.
23. Leases
(1) Operating lease
1. The Company as lessee
At the commencement date, the Company recognizes a lease that has a lease term of 12 months or less as a short-term lease, which
shall not contain a purchase option; the Company recognizes a lease as a lease of a low-value asset if the underlying asset is of low
value when it is new. If the Company subleases an asset, or expects to sublease an asset, the head lease does not qualify as a lease of a
low-value asset.
For all short-term leases and leases of low-value assets, lease payments are recognized as cost or profit or loss with straight-line
method/unit-of-production method over the lease term.
Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach, the Company recognizes
right-of-use assets and lease liabilities at the commencement date.
(1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement of the lease liability; 2)
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
any lease payments made at or before the commencement date, less any lease incentives received; 3) any initial direct costs incurred
by the lessee; and 4) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the
site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.
The Company depreciates the right-of-use asset using the straight-line method/unit-of-production method. If it is reasonable to be
certain that the ownership of the underlying asset can be acquired by the end of the lease term, the Company depreciates the right-of-
use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the
right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease
term.
(2) Lease liability
At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at
that date, discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company’s incremental
borrowing rate shall be used. Unrecognized financing expenses, calculated at the difference between the lease payment and its present
value, are recognized as interest expenses over the lease term using the discount rate which has been used to determine the present
value of lease payment and included in profit or loss. Variable lease payments not included in the measurement of lease liabilities are
included in profit or loss in the periods in which they are incurred.
After the commencement date, if there is a change in the following items: a. actual fixed payments; b. amounts expected to be payable
under residual value guarantees; c. an index or a rate used to determine lease payments; d. assessment result or exercise of purchase
option, extension option or termination option., the Company remeasures the lease liability based on the present value of lease payments
after changes, and adjusts the carrying amount of the right-of-use asset accordingly. If the carrying amount of the right-of-use asset is
reduced to zero but there shall be a further reduction in the lease liability, the remaining amount shall be recognized into profit or loss.
2. The Company as lessor
At the commencement date, the Company classifies a lease as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. Otherwise, it is classified as an operating lease.
Operating lease
Lease receipts are recognized as lease income with straight-line method/unit-of-production method over the lease term. Initial direct
costs incurred shall be capitalized, amortized on the same basis as the recognition of lease income, and included into profit or loss by
installments. Variable lease payments related to operating lease which are not included in the lease payment are charged as profit or
loss in the periods in which they are incurred.
24. Work safety fund
The Company accrues work safety fund in accordance with the “Circular on Management Measures on the Accrual and Use of Work
Safety Fund” numbered Cai Qi [2012] 16 by Ministry of Finance and State Administration of Work Safety. Standard work safety fund
is included in the cost or current profit or loss, meanwhile accounted for under “special reserve”. When work safety fund is used as an
expense, it is to offset special reserve directly. When work safety fund is qualified to be included in the cost of fixed assets, it is
accounted for under “construction in progress” and transferred to fixed assets when related safety projects reach the designed useful
conditions; meanwhile, the cost included in fixed assets is to offset “special reserve”, and accumulated depreciation shall be recognized
at the same amount. Such fixed assets shall not be depreciated in future periods.
25. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization, management requirements and
internal reporting system. An operating segment is a component of the Company:
1. that engages in business activities from which it may earn revenues and incur expenses;
2. whose financial performance is regularly reviewed by the Management to make decisions about resource to be allocated to the
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
segment and to assess its performance; and
3. for which accounting information regarding financial position, financial performance and cash flows is available through analysis.
26.Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding its employees, if the purchased
shares are to be kept as treasury shares, the treasury shares are recorded at the cash distributed to existing shareholders for repurchase;
if the purchased shares are to be retired, the difference between the total par value of shares retired and the cash distributed to existing
shareholders for repurchase is to reduce capital reserve, or retained earnings when the capital reserve is not enough to reduce. If the
Company repurchases vested equity instruments in equity-settled share-based payment transactions with employees, cost of treasury
shares granted to employees and capital reserve (other capital reserve) accumulated within the vesting period are to be written off on
the payment made to employees, with a corresponding adjustment in capital reserve (share premium).
27. Significant changes in accounting policies and estimates
(1) Significant changes in accounting policies
√ Applicable □ Not Applicable
Contents and reasons Approval process Remarks
The company will implement the revised interpretation of
accounting standards for Business Enterprises No. 15 from
January 1, 2022. According to the new standards, if the
company sells the products or by-products produced before
the fixed assets reach the expected serviceable state or during Please refer to Announcement No.
the research and development process, the income and cost N/A 2022-026 disclosed on
related to the trial operation sales shall be accounted for www.cninfo.com.cn on April 28,
separately and included in the current profit and loss. The net 2022 for details.
amount of the income related to the trial operation sales after
offsetting the relevant costs shall not be used to offset the
cost of the fixed assets or the research and development
expenditure.
The impact of the implementation of the standards on the relevant items of the company's balance sheet in 2021, profit statement and
cash flow statement in the same period of last year is retroactively adjusted as follows:
Unit: RMB Yuan
Before adjustment After adjustment
Effect due to revised
Items (Jan 1,2022/ Preceding period (Jan 1,2022/ Preceding period
lease standard
comparative) comparative)
Fixed assets 14,318,919,487.82 31,860,364.91 14,350,779,852.73
Undistributed profit 14,120,605,163.26 31,860,364.91 14,152,465,528.17
Operating revenue 7,254,221,638.01 85,902,672.10 7,340,124,310.11
Operating cost 3,755,325,045.02 67,422,657.18 3,822,747,702.20
Cash receipts from sale of goods
6,823,103,213.62 85,902,672.10 6,909,005,885.72
or rendering of services
Cash payments for goods
3,731,367,763.85 67,422,657.18 3,798,790,421.03
purchased and services received
Cash payments for the
acquisition of fixed assets,
1,308,312,685.39 18,480,014.92 1,326,792,700.31
intangible assets and other long-
term assets
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
VI. Taxes
1. Main taxes and tax rates
Taxes Tax bases Tax rates
13%, 9%, 6%, 5% and 19%; export goods enjoy the
The output tax calculated based on the
“exemption, credit and refund” policy and the refund
revenue from sales of goods or rendering
Value-added tax (VAT) rate ranges from 0% to 13%; the subsidiary Zhejiang
of services in accordance with the tax
NHU Import & Export Co., Ltd. enjoys the “refund
law, net of the input tax that is allowed to
upon collection” policy and the refund rate ranges
be deducted in the current period
from 0% to 13%.
Urban maintenance and Turnover tax actually paid 5%, 7%
construction tax
Enterprise income tax Taxable income 15%, 17%, 22%,25%
A four-grade progressive tax system is adopted. The
rates are: 30% for appreciated value not over 50% of
The incremental amount arising from the total deductible amount; 40% for appreciated value
Land appreciation tax transfer of state-owned land use right and over 50% but not over 100% of total deductible
the buildings and structures that are amount; 50% for appreciated value over 100% but not
constructed on the land over 200% of total deductible amount; and 60% for
appreciated value over 200% of total deductible
amount.
For housing property levied on the basis
of price, housing property tax is levied at
the rate of 1.2% of the balance after
Housing property tax deducting 30% of the cost; for housing 1.2%, 12%
property levied on the basis of rent,
housing property tax is levied at the rate
of 12% of rent revenue.
Education surcharge Turnover tax actually paid 3%
Local education surcharge Turnover tax actually paid 2%
Solidarity surcharge [Note] Income tax payable 5.50%
Trade tax [Note] Taxable income 13.30%
Note: The subsidiaries NHU EUROPE GmbH, NHU PERFORMANCE MATERIALS GMBH and Bardoterminal GmbH are subject
to these rates.
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
The Company 15%
Shangyu NHU Bio-Chem Co., Ltd. 15%
Zhejiang NHU Special Materials Co., Ltd. 15%
Shandong NHU Pharmaceutical Co., Ltd. 15%
Shandong NHU Amino-acids Co., Ltd. 15%
Shandong NHU Vitamins Co., Ltd. 15%
Heilongjiang NHU Biotechnology Co., Ltd. 15%
NHU EUROPE GmbH 15%
NHU PERFORMANCE MATERIALS GMBH 15%
Bardoterminal GmbH 15%
NHU/CHR.OLESEN LATIN AMERICA A/S 22%
NHU Singapore PTE. LTD. 17%
Taxpayers other than the above-mentioned 25%
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2. Tax preferential policies
According to the Hi-Tech 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 (STA),
the Company is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2020 to 2022. It is subject to the
rate of 15% for enterprise income tax in 2022.
According to the Hi-Tech Enterprise Certificate (GR201933005736) issued by Zhejiang Provincial Department of Science and
Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, STA, the subsidiary Shangyu NHU Bio-
Chem Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2019 to 2021. It is temporarily
subject to the rate of 15% for enterprise income tax in 2022.
According to the Hi-Tech Enterprise Certificate (GR202037001084) issued by Department of Science and Technology of Shandong
Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiary Shandong NHU
Pharmaceutical Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2020 to 2022. It is
subject to the rate of 15% for enterprise income tax in 2022.
According to the Hi-Tech Enterprise Certificate (GR202037000197) issued by Department of Science and Technology of Shandong
Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiary Shandong NHU
Vitamins Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2020 to 2022. It is subject
to the rate of 15% for enterprise income tax in 2022.
According to the Hi-Tech Enterprise Certificate (GR202137000086) issued by Department of Science and Technology of Shandong
Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiary Shandong NHU
Amino-Acids Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2021 to 2023. It is
subject to the rate of 15% for enterprise income tax in 2022. Amino-acids Co., Ltd.
According to the Hi-Tech Enterprise Certificate (GR202133008939) issued by Zhejiang Provincial Department of Science and
Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, STA, the subsidiary Zhejiang NHU
Special Materials Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2021 to 2023. It is
subject to the rate of 15% for enterprise income tax in 2022.
According to the Hi-Tech Enterprise Certificate (GR202123000560) issued by Heilongjiang Provincial Department of Science and
Technology, Heilongjiang Provincial Department of Finance and Heilongjiang Provincial Tax Service, STA, the subsidiary
Heilongjiang NHU Biotechnology Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from
2021 to 2023. It is subject to the rate of 15% for enterprise income tax in 2022.
VII. Notes to items of consolidated financial statements
1. Cash and bank balances
Unit: RMB Yuan
Items Closing balance Opening balance
Cash on hand 9,862.96 14,537.85
Cash in bank 6,451,698,706.20 5,684,842,466.04
Other cash and bank balances 138,304,339.10 268,052,623.05
Total 6,590,012,908.26 5,952,909,626.94
Including: Deposited overseas 44,577,418.70 38,739,302.11
Total amount of funds restricted for use due
0.00 0.00
to mortgage, pledge or freezing
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(1) Other cash and bank balances
Unit: RMB Yuan
Items Closing balance Opening balance
Deposit for bank acceptance 108,852,086.25 149,724,511.46
Deposit for letters of credit 27,364,565.06 86,212,564.30
Deposit for engineering labor costs 1,711,851.11 1,654,664.15
Deposit for construction safety 405,056.50
Deposit for ETC 16,500.00 16,500.00
Deposit for water fees 359,336.68 358,792.30
Deposited investment fund 29,680,534.34
Subtotal 138,304,339.10 268,052,623.05
2. Held-for-trading financial assets
Unit: RMB Yuan
Items Closing balance Opening balance
Financial assets at fair value through profit
669,555,464.77 1,250,736,359.24
or loss
Including: Financial products with
660,000,000.00 1,250,000,000.00
guaranteed principal and floating income
Derivative financial assets 9,555,464.77 736,359.24
Total 669,555,464.77 1,250,736,359.24
3. Notes receivable
(1) Details on categories
Unit: RMB Yuan
Items Closing balance Opening balance
Bank acceptance 303,837,602.00 349,145,316.03
Commercial acceptance 35,305,829.45
Total 339,143,431.45 349,145,316.03
Unit: RMB Yuan
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Notes receivable with provision for
341,001,633.00 100.00% 1,858,201.55 0.55% 339,143,431.45
bad debts made on a collective basis
Including:
Bank acceptance 303,837,602.00 89.10% 303,837,602.00
Commercial acceptance 37,164,031.00 10.90% 1,858,201.55 5.00% 35,305,829.45
Total 341,001,633.00 100.00% 1,858,201.55 0.55% 339,143,431.45
(Continued)
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Notes receivable with provision for
349,145,316.03 100.00% 349,145,316.03
bad debts made on a collective basis
Including:
Bank acceptance 349,145,316.03 100.00% 349,145,316.03
Commercial acceptance
Total 349,145,316.03 100.00% 349,145,316.03
If the provision for bad debt of notes receivable is withdrawn according to the general model of expected credit loss, please refer to
the disclosure method of other receivables to disclose the relevant information of bad debt provision:
□ Applicable√ Not Applicable
(2) Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Increase/Decrease
Categories Opening balance Closing balance
Accrual Recovery/ Write-off Others
Reversal
Commercial acceptance 1,858,201.55 1,858,201.55
Total 1,858,201.55 1,858,201.55
Including significant provision for bad debt recovered or reversed amount:
□ Applicable√ Not Applicable
(3) Pledged notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance of pledged notes
Bank acceptance 209,801,476.61
Total 209,801,476.61
(4) Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance derecognized Closing balance not yet derecognized
Bank acceptance 6,367,492.12
Total 6,367,492.12
Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little possibility of
failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted bank acceptance.
However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on such acceptance, according
to the China Commercial Instrument Law.
4. Accounts receivable
(1) Details on categories
Unit: RMB Yuan
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Accounts receivable with provision
for bad debts made on a collective 3,225,123,123.09 100.00% 163,247,522.57 5.06% 3,061,875,600.52
basis
Total 3,225,123,123.09 100.00% 163,247,522.57 5.06% 3,061,875,600.52
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Accounts receivable with provision
for bad debts made on a collective 2,902,396,632.04 100.00% 147,228,058.90 5.07% 2,755,168,573.14
basis
Total 2,902,396,632.04 100.00% 147,228,058.90 5.07% 2,755,168,573.14
Accounts receivable with provision for bad debts made on a collective basis using age analysis method
Unit: RMB Yuan
Closing balance
Items
Book balance Provision for bad debts Provision proportion
Within 1 year 3,222,776,842.29 161,138,841.77 5.00%
1-2 years 297,000.00 59,400.00 20.00%
2-3 years
Over 3 years 2,049,280.80 2,049,280.80 100.00%
Total 3,225,123,123.09 163,247,522.57 --
Disclose by aging
Unit: RMB Yuan
Ages Book balance
Within 1 year (inclusive) 3,222,776,842.29
1-2 years 297,000.00
2-3 years
Over 3 years 2,049,280.80
3-4 years 203,200.00
4-5 years 286,550.00
Over 5 years 1,559,530.80
Total 3,225,123,123.09
(2) Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Increase/Decrease
Categories Opening balance Closing balance
Accrual Recovery/ Write-off Others
Reversal
Provision made on a
147,228,058.90 16,019,463.67 163,247,522.57
collective basis
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Increase/Decrease
Categories Opening balance Closing balance
Accrual Recovery/ Write-off Others
Reversal
Total 147,228,058.90 16,019,463.67 163,247,522.57
(3) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Debtors Closing balance Proportion to the total balance of Closing balance of provision for
receivables (%) bad debts
Client A 370,453,247.11 11.49% 18,522,662.36
Client B 289,470,824.68 8.98% 14,473,541.23
Client C 233,254,640.83 7.23% 11,662,732.04
Client D 112,321,714.00 3.48% 5,616,085.70
Client E 73,238,065.34 2.27% 3,661,903.27
Total 1,078,738,491.96 33.45%
5. Receivables financing
Unit: RMB Yuan
Items Closing balance Opening balance
Bank acceptance 198,094,359.06 182,891,179.65
Total 198,094,359.06 182,891,179.65
Current increase/decrease and changes in fair value
□ Applicable √ Not applicable
(1) Pledged notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance of pledged notes
Bank acceptance 130,363,316.90
Subtotal 130,363,316.90
(2) Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance derecognized
Bank acceptance 938,811,673.06
Subtotal 938,811,673.06
Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little possibility of
failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted bank acceptance.
However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on such acceptance,
according to the China Commercial Instrument Law.
6. Advances paid
(1) Disclose by aging
Unit: RMB Yuan
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 115,460,768.26 93.65% 78,853,695.19 99.85%
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Closing balance Opening balance
Ages
Amount % to total Amount % to total
1-2 years 7,823,254.73 6.34% 109,065.41 0.14%
2-3 years 7,200.00 0.01%
Over 3 years 7,200.00 0.01%
Total 123,291,222.99 78,969,960.60
(2) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Debtors Book balance Proportion to the total balance of
advances paid (%)
Supplier A 20,812,893.84 16.88
Supplier B 19,554,899.89 15.86
Supplier C 10,211,361.96 8.28
Supplier D 8,106,071.73 6.57
Supplier E 6,461,700.00 5.25
Subtotal 65,146,927.42 52.84
7. Other receivables
Unit: RMB Yuan
Items Closing balance Opening balance
Dividend receivable 7,159,278.00
Other receivables 247,863,734.11 247,337,970.13
Total 247,863,734.11 254,497,248.13
(1) Dividend receivable
Unit: RMB Yuan
Items/Investees Closing balance Opening balance
浙江春晖环保能源股份有限公司
(Zhejiang Chunhui Environmental 7,159,278.00
Protection Energy Co., Ltd.*)
Total 7,159,278.00
(2) Other receivables
1) Categorized by nature
Unit: RMB Yuan
Nature of receivables Closing book balance Opening book balance
Security deposits 127,093,425.64 136,459,247.48
Export tax refund 70,511,187.22 69,372,321.60
Receivables of returned equipment 874,415.57 45,213,200.00
Refundable VAT 3,934,130.21 3,310,397.40
Employee petty cash 8,771,601.89 5,688,937.00
Temporary advance payment receivable 2,146,851.22 2,456,748.36
Others 49,216,054.21 653,640.31
Total 262,547,665.96 263,154,492.15
* The English name is for identification purpose only.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
2) Provision for bad debts
Unit: RMB Yuan
Phase I Phase II Phase III
Provision for bad debts Total
12 month expected Lifetime expected credit Lifetime expected credit
credit losses losses (credit not impaired) losses (credit impaired)
Opening balance 2,915,877.46 716,215.08 12,184,429.48 15,816,522.02
Opening balance in the current
period
--Transferred to phase II -53,622.65 53,622.65
--Transferred to phase III -667,900.07 667,900.07
Provision made in the current
252,433.43 112,552.93 -1,497,576.53 -1,132,590.17
period
Closing balance 3,114,688.24 214,490.59 11,354,753.02 14,683,931.85
Significant changes in book balance of other receivables with changes in provision for bad debts:
□ Applicable √ Not applicable
Disclose by aging
Unit: RMB Yuan
Ages Book balance
Within 1 year (inclusive) 149,037,459.84
1-2 years 1,072,453.00
2-3 years 3,339,500.36
Over 3 years 109,098,252.76
3-4 years 7,772,795.15
4-5 years 6,925.01
Over 5 years 101,318,532.60
Total 262,547,665.96
3) Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Increase/Decrease
Categories Opening balance Closing balance
Accrual Recovery/ Write-off Others
Reversal
Provision made on a
15,816,522.02 1,132,590.17 14,683,931.85
collective basis
Total 15,816,522.02 1,132,590.17 14,683,931.85
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
4) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the
Nature of Provision for bad
Debtors Book balance Ages total balance of other
receivables debts
receivables (%)
Weifang Municipal
Bureau of Land and Security deposits Over 3 years
97,900,000.00 37.29%
Resource, Binhai
District Branch
State Taxation
Administration Export tax refund Within 1 year
70,511,187.22 26.86%
(Export tax refund
receivable)
Suihua Municipal 2-3 years
Security deposits 850,000.00 0.32% 680,000.00
Labor Security
Supervision Security deposits Over 3 years
Detachment 7,428,490.53 2.83% 7,428,490.53
杭州汽轮机股份有
限公司 (Hangzhou Receivables of
7,440,000.00 Within 1 year 2.83% 372,000.00
Steam Turbine Co., returned equipment
Ltd.*)
绍兴市上虞区财政
局非税收入结算分
户(Non tax income Portfolio of land
5,570,000.00 Within 1 year 2.12%
settlement branch of deposits receivable
Shaoxing Shangyu
District Finance
Bureau)
Total -- 189,699,677.75 -- 72.25% 8,480,490.53
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
(1) Details on categories
Unit: RMB Yuan
Closing balance Opening balance
Provision for Provision for
inventory write- inventory write-
Items
Book balance down/ Provision Carrying amount Book balance down/ Provision Carrying amount
for impairment of for impairment of
cost to fulfill a cost to fulfill a
contract contract
Raw materials 560,435,992.82 638,820.20 559,797,172.62 456,431,898.77 653,463.45 455,778,435.32
Work in process 1,500,164,208.68 1,500,164,208.68 1,008,021,313.66 1,008,021,313.66
Goods on hand 1,987,440,447.37 5,153,376.38 1,982,287,070.99 1,247,338,255.71 14,685,437.55 1,232,652,818.16
Development cost 222,262,216.11 222,262,216.11 197,045,414.10 197,045,414.10
Developed
120,382,839.33 120,382,839.33 122,679,279.65 122,679,279.65
products
Goods dispatched 31,739,132.25 31,739,132.25 88,307,137.99 88,307,137.99
Materials on
consignment for 2,609,006.80 2,609,006.80 4,102,415.43 4,102,415.43
further processing
Packages 17,435,161.93 17,435,161.93 14,276,697.20 14,276,697.20
* The English names are for identification purpose only.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Closing balance Opening balance
Provision for Provision for
inventory write- inventory write-
Items
Book balance down/ Provision Carrying amount Book balance down/ Provision Carrying amount
for impairment of for impairment of
cost to fulfill a cost to fulfill a
contract contract
Low-value
125,496,408.18 125,496,408.18 70,793,855.65 70,793,855.65
consumables
Total 4,567,965,413.47 5,792,196.58 4,562,173,216.89 3,208,996,268.16 15,338,901.00 3,193,657,367.16
(2) Inventories – Development cost
Unit: RMB Yuan
Items Estimated total investment Opening balance Closing balance
Boao NHU Resort 550 million 33,723,820.73 42,322,830.63
Weifang NHU Town Phase II 398.53 million 163,321,593.67 179,939,385.48
Subtotal 197,045,414.40 222,262,216.11
(3) Inventories – Developed products
Unit: RMB Yuan
Items Date of Opening balance Increase Decrease Closing balance
completion
Boao NHU Resort Center Dec. 2014 122,679,279.65 2,616,624.57 4,913,064.89 120,382,839.33
Subtotal 122,679,279.65 2,616,624.57 4,913,064.89 120,382,839.33
(4) Provision for inventory write-down and provision for impairment of cost to fulfill a contract
Unit: RMB Yuan
Increase Decrease
Items Opening balance Closing balance
Accrual Others Recovery/ Others
Reversal
Raw materials 653,463.45 14,643.25 638,820.20
Goods on hand 14,685,437.55 7,890,179.58 17,422,240.75 5,153,376.38
Total 15,338,901.00 7,890,179.58 17,436,884.00 5,792,196.58
Determination basis of net realizable value and reasons for the reversal or write-off of provision for inventory write-down
Items Determination basis of net realizable value Reasons for write-off of provision for inventory
write-down
Estimated selling price of relevant finished goods less Inventories with provision for inventory write-down
Raw materials cost to be incurred upon completion, estimated selling made at the beginning of period were used or sold
expenses, and relevant taxes and surcharges. in the current period.
Estimated selling price of relevant finished goods less Inventories with provision for inventory write-down
Goods on hand estimated selling expenses, and relevant taxes and made at the beginning of period were sold in the
surcharges. current period.
9. Other current assets
Unit: RMB Yuan
Items Closing balance Opening balance
Bank financial products and structured
260,000,000.00 550,000,000.00
deposits
Prepaid VAT or input VAT to be credited 59,603,808.12 336,963,113.65
Prepaid enterprise income tax 5,070,275.22 5,070,275.22
Prepaid insurance premiums 5,442,975.30 3,727,306.74
85
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Closing balance Opening balance
Prepaid housing rents 488,400.00
Prepaid urban maintenance and
6,732.66 10,786.63
construction tax
Prepaid education surcharge 4,039.43 6,472.01
Prepaid local education surcharge 2,693.23 4,314.62
Total 330,618,923.96 895,782,268.87
10. Long-term equity investments
Unit: RMB Yuan
Increase/Decrease Closing
balance
Investment Cash of
Opening Adjustment Provision Closing carrying
Investees Investme Investme income/losses dividend/ provisi
carrying amount in other Changes in for Others amount
nts nts recognized Profit on for
comprehens other equity impairme
increased decreased under equity declared for impair
ive income nt
method distribution ment
I. Joint ventures
II. Associates
Zhejiang
Chunhui
5,043,725.5
Environmental 208,873,174.90 19,977,116.53 233,894,016.95
2
Protection
Energy Co., Ltd.
山东滨安职业
培训学校有限
公司 (Shandong
Bin’an 5,895,600.85 -891,366.47 5,004,234.38
Vocational
Training School
Co., Ltd.*)
[Note]
Zhejiang Saiya
-
Chemical
103,898,217.82 6,450,635.49 233,046. 110,581,899.54
Materials Co.,
23
Ltd.
CysBio ApS 1,714,730.9
32,660,632.18 -133,491.85 34,241,871.27
4
-
Subtotal 1,714,730.9 5,043,725.5
351,327,625.75 25,402,893.70 233,046. 383,722,022.14
4 2
23
-
Total 1,714,730.9 5,043,725.5
351,327,625.75 25,402,893.70 233,046. 383,722,022.14
4 2
23
11. Other equity instrument investments
Unit: RMB Yuan
Items Closing balance Opening balance
Zhejiang Second Pharma Co., Ltd. 7,790,147.55 7,790,147.55
上海联创永津股权投资企业(有限合伙)
(Shanghai NewMargin Yongjin Eqiuty 15,208,000.00 15,208,000.00
Enterprise (LP)*)
Total 22,998,147.55 22,998,147.55
12. Fixed assets
Unit: RMB Yuan
Items Closing balance Opening balance
Fixed assets 14,895,938,812.24 14,350,779,852.73
* The English names are for identification purpose only.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Closing balance Opening balance
Total 14,895,938,812.24 14,350,779,852.73
(1) Details
Unit: RMB Yuan
Transport
Items Buildings and Generali equipment Special equipment Total
structures facilities
I. Cost:
1. Opening balance 6,293,404,278.18 185,910,525.30 12,993,424,027.58 25,093,346.32 19,497,832,177.38
2. Increase 307,226,885.34 12,513,262.41 875,030,168.38 756,287.53 1,195,526,603.66
(1) Acquisition 49,606,453.52 4,119,396.73 184,642,732.27 756,287.53 239,124,870.05
(2) Transferred in
from construction in 257,620,431.82 8,393,865.68 690,387,436.11 956,401,733.61
progress
3. Decrease 4,212,678.67 1,481,292.80 60,775,319.81 1,110,178.02 67,579,469.30
(1) Disposal/
4,212,678.67 1,481,292.80 60,775,319.81 1,110,178.02 67,579,469.30
Scrapping
4. Closing balance 6,596,418,484.85 196,942,494.91 13,807,678,876.15 24,739,455.83 20,625,779,311.74
II. Accumulated
depreciation
1. Opening balance 680,779,035.53 99,138,742.55 4,320,266,548.05 17,140,892.56 5,117,325,218.69
2. Increase 88,291,408.66 11,645,400.65 522,774,833.97 992,225.43 623,703,868.71
(1) Accrual 88,291,408.66 11,645,400.65 522,774,833.97 992,225.43 623,703,868.71
3. Decrease 1,240,249.78 1,361,247.27 36,993,866.52 1,054,669.12 40,650,032.69
(1) Disposal/
1,240,249.78 1,361,247.27 36,993,866.52 1,054,669.12 40,650,032.69
Scrapping
4. Closing balance 767,830,194.41 109,422,895.93 4,806,047,515.50 17,078,448.87 5,700,379,054.71
III. Provision for
impairment
1. Opening balance 20,980,481.81 23,560.67 8,706,768.47 16,295.01 29,727,105.96
2. Increase
(1) Accrual
3. Decrease 265,661.17 265,661.17
(1) Disposal/
265,661.17 265,661.17
Scrapping
4. Closing balance 20,980,481.81 23,560.67 8,441,107.30 16,295.01 29,461,444.79
IV. Carrying amount
1. Closing balance 5,807,607,808.63 87,496,038.31 8,993,190,253.35 7,644,711.95 14,895,938,812.24
2. Opening balance 5,591,644,760.84 86,748,222.08 8,664,450,711.06 7,936,158.75 14,350,779,852.73
(2) Fixed assets temporarily idle
Unit: RMB Yuan
Items Cost Accumulated Provision for Carrying amount Remarks
depreciation impairment
Buildings and
47,473,208.51 26,497,772.70 20,975,435.81
structures
General equipment 3,155,144.40 2,503,860.84 19,086.19 632,197.37
Special equipment 258,025,988.56 212,896,623.38 7,700,174.69 37,429,190.49
Subtotal 308,654,341.47 241,898,256.92 28,694,696.69 38,061,387.86
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
(3) Fixed assets leased out under operating leases
Unit: RMB Yuan
Items Closing carrying amount
Buildings and structures 37,476,964.43
Subtotal 37,476,964.43
(4) Fixed assets with certificate of titles being unsettled
Unit: RMB Yuan
Items Carrying amount Reasons for unsettlement
Buildings and structures Relevant procedures have not yet been
1,662,828,136.50
completed.
Subtotal 1,662,828,136.50
13. Construction in progress
Unit: RMB Yuan
Items Closing balance Opening balance
Construction in progress 3,855,244,085.78 2,984,835,072.82
Total 3,855,244,085.78 2,984,835,072.82
(1) Details
Unit: RMB Yuan
Closing balance Opening balance
Items
Book balance Provision for Carrying amount Book balance Provision for Carrying amount
impairment impairment
Shandong Industrial
26,161,197.41 26,161,197.41 30,856,442.13 30,856,442.13
Park Project phase I
Hongweisu project 367,528,650.61 367,528,650.61
Heilongjiang Xinhao
92,260,783.07 92,260,783.07 83,453,010.80 83,453,010.80
Project phase II
Methionine project
with annual output of 583,534,561.06 583,534,561.06 90,355,454.04 90,355,454.04
0.25 million tons
HA project of Shandong
Industrial Park
6,765,008.56 6,765,008.56
616 Joint Production
626,422,343.97 626,422,343.97 393,488,496.81 393,488,496.81
Project
Shandong Industrial
10,552,500.84 10,552,500.84 1,718,828.38 1,718,828.38
Park 617A Project
Shandong Industrial
18,278,788.27 18,278,788.27 3,019,859.02 3,019,859.02
Park 603 Project
Shangyu Industrial
548,939,962.75 548,939,962.75 341,096,363.93 341,096,363.93
Park PPS Project
Shandong Industrial
1,187,152,322.30 1,187,152,322.30 1,173,527,758.16 1,173,527,758.16
Park TMB Project
NBC and CLA
projects of Zhejiang 74,466,178.10 74,466,178.10
Pharmaceutical
Daming Life and
Health Industry 1,831,723.64 1,831,723.64 228,847,778.44 228,847,778.44
Project
Expansion of hexoic 101,202,967.66 101,202,967.66 36,844.14 36,844.14
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Closing balance Opening balance
Items
Book balance Provision for Carrying amount Book balance Provision for Carrying amount
impairment impairment
acid production
F5 project 54,789,025.29 54,789,025.29
NH acid project 83,340,479.79 83,340,479.79 5,575,181.98 5,575,181.98
Other piecemeal
439,546,243.07 439,546,243.07 265,330,404.38 265,330,404.38
projects
Total 3,855,244,085.78 3,855,244,085.78 2,984,835,072.82 2,984,835,072.82
(2) Changes in significant projects
Unit: RMB Yuan
Including:
Budgets Accumulate
Amount of
d amount of
(RMB Opening borrowing Annual
Projects Increase Transferred to Other Closing Accumulated Completion borrowing Fund
cost capitalization
0,000 balance fixed assets decrease balance input to budget percentage cost source
capitalization rate
capitalizatio
Yuan) in current
n
period
Shandong
Industrial 311,600.0 30,856,44 34,536,537. 87,993,003. Others
39,231,781.82 26,161,197.41 85.82% 100.00%
Park Project 0 2.13 10 25
phase I
Hongweisu 367,528,6 60,572,629. 428,101,279.9 6,070,837.5
47,822.98 98.76% 100.00% 4,230,562.51 3.91% Others
project 50.61 36 7 1
Expansion
of hexoic 101,166,12 101,202,967.6 Others
24,796.00 36,844.14 40.80% 45.00%
acid 3.52 6
production
Heilongjian
g Xinhao 83,453,01 8,807,772.2 Others
10,746.25 92,260,783.07 85.86% 100.00%
Project 0.80 7
phase II
Methionine
project with
annual 536,984.2 90,355,45 493,179,10 583,534,561.0 Raised
48.04% 55.00%
output of 2 4.04 7.02 6 funds
0.25 million
tons
HA project
of
6,765,008.5 Others
Shandong 97,991.14 0.00 6,765,008.56 0.69% 0.00%
6
Industrial
Park
Shandong
Industrial 1,718,828 8,833,672.4 Others
8,500.00 10,552,500.84 96.83% 98.00%
Park 617A .38 6
Project
Shandong
Industrial 3,019,859 15,258,929. Others
8,983.60 18,278,788.27 20.35% 25.00%
Park 603 .02 25
Project
NH acid 5,575,181 77,765,297. Others
73,899.28 83,340,479.79 10.52% 20.00%
project .98 81
Shangyu
Industrial 341,096,3 207,843,59 548,939,962.7 Others
70,900.00 77.43% 80.00%
Park PPS 63.93 8.82 5
Project
Shandong
Industrial 123,160.5 1,173,527 13,624,564. 1,187,152,322 21,655,963.
100.12% 100.00% 13,936,992.97 3.70% Others
Park TMB 9 ,758.16 14 .30 48
Project
54,789,025. Others
F5 project 9,933.00 0.00 54,789,025.29 55.16% 60.00%
29
Daming
228,847,7 134,259,99 361,276,046.5 Others
Life and 45,772.07 1,831,723.64 93.08% 100.00%
78.44 1.75 5
Health
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Including:
Budgets Accumulate
Amount of
d amount of
(RMB Opening borrowing Annual
Projects Increase Transferred to Other Closing Accumulated Completion borrowing Fund
cost capitalization
0,000 balance fixed assets decrease balance input to budget percentage cost source
capitalization rate
capitalizatio
Yuan) in current
n
period
Industry
Project
616 Joint
393,488,4 308,289,71 626,422,343.9 Others
Production 77,213.69 75,355,865.07 90.89% 90.00%
96.81 2.23 7
Project
Carbonic
74,466,178. Others
anhydride 15,505.00 74,466,178.10 48.03% 75.00%
10
project
Total 1,463,807 2,719,504 1,600,158,1 903,964,973.4 3,415,697,842 115,719,80 --
18,167,555.48
.82 ,668.44 47.68 1 .71 4.24
14. Right-of-use assets
Unit: RMB Yuan
Items Buildings and structures Total
I. Cost
1. Opening balance 3,406,640.15 3,406,640.15
2. Increase 589,739.18 589,739.18
(1) Leased in 589,739.18 589,739.18
3. Decrease
4. Closing balance 3,996,379.33 3,996,379.33
II. Accumulated depreciation
1. Opening balance 283,003.04 283,003.04
2. Increase 657,653.96 657,653.96
(1) Accrual 657,653.96 657,653.96
3. Decrease
4. Closing balance 940,657.00 940,657.00
III. Carrying amount
1. Closing balance 3,055,722.33 3,055,722.33
2. Opening balance 3,123,637.11 3,123,637.11
15. Intangible assets
(1) Details
Unit: RMB Yuan
Items Land use right Patent right Non-patented Software Total
technology
I. Cost
1. Opening balance 1,671,339,796.09 28,079,514.71 2,350,000.00 25,797,067.68 1,727,566,378.48
2. Increase 104,041,811.43 3,551,460.54 900,000.00 5,015,670.48 113,508,942.45
(1) Acquisition 104,041,811.43 3,551,460.54 900,000.00 5,015,670.48 113,508,942.45
3. Closing balance 1,775,381,607.52 31,630,975.25 3,250,000.00 30,812,738.16 1,841,075,320.93
II. Accumulated amortization
1. Opening balance 187,383,747.14 2,884,411.16 208,888.88 15,359,573.64 205,836,620.82
2. Increase 16,941,850.31 1,167,744.44 83,333.34 932,841.15 19,125,769.24
(1) Accrual 16,941,850.31 1,167,744.44 83,333.34 932,841.15 19,125,769.24
3. Closing balance 204,325,597.45 4,052,155.60 292,222.22 16,292,414.79 224,962,390.06
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Land use right Patent right Non-patented Software Total
technology
III. Carrying amount
1. Closing balance 1,571,056,010.07 27,578,819.65 2,957,777.78 14,520,323.37 1,616,112,930.87
2. Opening balance 1,483,956,048.95 25,195,103.55 2,141,111.12 10,437,494.04 1,521,729,757.66
At the balance sheet date, intangible assets formed through internal research and development account for 0.00% of total intangible
assets.
(2) Land use right with certificate of titles being unsettled
Unit: RMB Yuan
Items Carrying amount Reasons for unsettlement
Land use right Relevant procedures have not yet been
169,939,239.04
completed.
Subtotal 169,939,239.04
16. Goodwill
(1) Cost
Unit: RMB Yuan
Investees or Increase Decrease
events resulting Opening balance Closing balance
Business Translation Disposal Translation
in goodwill combination reserve reserve
Bardoterminal
2,075,762.80 2,075,762.80
GmbH
NHU/Chr.Olesen
Latin America 4,410,005.33 4,410,005.33
A/S
Total 2,075,762.80 4,410,005.33 6,485,768.13
(2) Provision for impairment
Unit: RMB Yuan
Investees or Increase Decrease
events resulting Opening balance Closing balance
Accrual Translation Disposal Translation
in goodwill reserve reserve
Bardoterminal
2,075,762.80 2,075,762.80
GmbH
Total 2,075,762.80 2,075,762.80
17. Long-term prepayments
Unit: RMB Yuan
Items Opening balance Increase Amortization Other decrease Closing balance
Decoration fees 10,378,910.67 1,109,082.38 1,725,261.70 9,762,731.35
Site leveling fees 32,443.20 8,110.80 24,332.40
Catalysts 8,180,353.19 1,583,294.16 6,597,059.03
Total 18,591,707.06 1,109,082.38 3,316,666.66 16,384,122.78
18. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offset
Unit: RMB Yuan
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Closing balance Opening balance
Items
Deductible temporary Deferred tax assets Deductible temporary Deferred tax assets
difference difference
Provision for impairment
65,981,355.91 10,841,412.64 65,402,828.30 11,004,917.24
of assets
Unrealized profit from
148,892,550.32 21,957,449.07 116,662,766.83 17,499,415.02
internal transactions
Deferred income 185,344,079.25 31,457,737.97 143,266,156.26 21,489,923.45
Difference in
depreciation of fixed 24,834,403.19 3,725,160.48 38,739,574.92 5,810,936.24
assets
Total 425,052,388.67 67,981,760.16 364,071,326.31 55,805,191.95
(2) Deferred tax liabilities before offset
Unit: RMB Yuan
Closing balance Opening balance
Items
Taxable temporary Deferred tax liabilities Taxable temporary Deferred tax liabilities
difference difference
Difference due to one-off
pre-tax deduction of 715,420,690.73 131,400,770.44 513,284,381.91 89,042,045.24
fixed assets
Profit before tax of NHU
(Hong Kong) Trading 465,759,650.73 69,863,947.61 311,395,060.48 46,709,259.07
Co., Ltd.
Changes in fair value of
held-for-trading financial
49,374.92 12,343.73
instruments, derivative
financial instruments
Total 1,181,229,716.38 201,277,061.78 824,679,442.39 135,751,304.31
(3) Deferred tax assets or liabilities after offset
Unit: RMB Yuan
Closing balance of Closing balance of Opening balance of Opening balance of
Items deferred tax assets offset deferred tax assets/ deferred tax assets offset deferred tax assets/
by deferred tax liabilities liabilities after offset by deferred tax liabilities liabilities after offset
Deferred tax assets 67,981,760.16 55,805,191.95
Deferred tax liabilities 201,277,061.78 135,751,304.31
(4) Details of unrecognized deferred tax assets
Unit: RMB Yuan
Items Closing balance Opening balance
Deductible temporary difference 1,089,827,798.34 381,427,135.81
Deductible losses 719,488,177.13 976,794,270.71
Total 1,809,315,975.47 1,358,221,406.52
(5) Maturity years of deductible losses of unrecognized deferred tax assets
Unit: RMB Yuan
Maturity years Closing balance Opening balance Remarks
Year 2026 3,312,384.19
Year 2027 8,512,140.12 11,527,268.52
Year 2028 36,412,545.60 38,888,442.26
Year 2029 79,322,307.29 104,197,877.04
Year 2030 307,772,614.41 260,165,696.64
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Maturity years Closing balance Opening balance Remarks
Year 2031 287,468,569.71 558,702,602.06
Total 719,488,177.13 976,794,270.71 --
19. Other non-current assets
Unit: RMB Yuan
Closing balance Opening balance
Items Provision Provision
Book balance Carrying Book balance Carrying amount
for for
amount
impairment impairment
Pollution emission trading fees 1,292,725.74 1,292,725.74 1,611,305.24 1,611,305.24
Payments for coal quota 64,696,000.00 64,696,000.00 65,896,000.00 65,896,000.00
Prepayments for long-term
760,550,646.72 760,550,646.72 433,569,279.16 433,569,279.16
assets
Total 826,539,372.46 826,539,372.46 501,076,584.40 501,076,584.40
20. Short-term borrowings
(1) Details on categories
Unit: RMB Yuan
Items Closing balance Opening balance
Guaranteed borrowings 40,657,504.12
Credit borrowings 2,593,288,059.34 1,383,332,827.92
Credit and guaranteed borrowings 20,000,000.00
Total 2,633,945,563.46 1,403,332,827.92
21. Notes payable
Unit: RMB Yuan
Categories Closing balance Opening balance
Bank acceptance 930,489,306.12 694,124,946.73
Total 930,489,306.12 694,124,946.73
22. Accounts payable
(1) Details
Unit: RMB Yuan
Items Closing balance Opening balance
Materials and labor costs 1,040,778,914.56 658,235,707.69
Payments for engineering and equipment 727,678,434.43 777,730,720.07
Total 1,768,457,348.99 1,435,966,427.76
23. Contract liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Payments for goods received in advance 82,505,836.42 61,135,258.36
Total 82,505,836.42 61,135,258.36
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
24. Employee benefits payable
(1) Details
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
I. Short-term employee benefits 370,609,333.07 929,674,922.94 1,046,347,485.05 253,936,770.96
II. Post-employment benefits –
51,883,162.78 51,883,162.78
defined contribution plan
Total 370,609,333.07 981,558,085.72 1,098,230,647.83 253,936,770.96
(2) Details of short-term employee benefits
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
1. Wage, bonus, allowance and
317,401,585.64 805,256,294.78 915,763,606.50 206,894,273.92
subsidy
2. Employee welfare fund 57,033,926.04 57,033,926.04
3. Social insurance premium 25,723,093.08 25,723,093.08
Including: Medicare premium 22,567,820.32 22,567,820.32
Occupational injuries
2,247,661.85 2,247,661.85
premium
Maternity premium 907,610.91 907,610.91
4. Housing provident fund 38,297,393.30 38,297,393.30
5. Trade union fund and
53,207,747.43 3,364,215.74 9,529,466.13 47,042,497.04
employee education fund
Total 370,609,333.07 929,674,922.94 1,046,347,485.05 253,936,770.96
(3) Details of defined contribution plan
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
1. Basic endowment insurance
49,639,113.41 49,639,113.41
premium
2. Unemployment insurance
2,244,049.37 2,244,049.37
premium
Total 51,883,162.78 51,883,162.78
25. Taxes and rates payable
Unit: RMB Yuan
Items Closing balance Opening balance
VAT 14,343,279.38 45,928,799.96
Enterprise income tax 229,423,440.36 324,899,257.88
Individual income tax withheld for tax
2,641,901.19 3,749,309.86
authorities
Urban maintenance and construction tax 1,202,803.47 3,686,070.96
Land appreciation tax 15,304,886.02 15,244,826.82
Housing property tax 4,113,837.00 15,577,742.83
Land use tax 4,404,547.89 8,351,133.07
Education surcharge (local education
1,066,402.26 3,273,420.39
surcharge)
Stamp duty 12,023.50 32,700.92
Total 272,513,121.07 420,743,262.69
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
26. Other payables
Unit: RMB Yuan
Items Closing balance Opening balance
Other payables 133,386,496.99 56,712,103.36
Total 133,386,496.99 56,712,103.36
(1) Categorized by nature
Unit: RMB Yuan
Items Closing balance Opening balance
Security deposits 25,601,693.33 32,961,596.12
Freight premium payable 20,823.30
Temporary receipts payable 9,358,462.55 11,425,312.83
Earnest money for housing purchase (Boao
100,000.00 100,000.00
NHU Resort Center)
Call loans 70,431,907.01
Others 27,873,610.80 12,225,194.41
Total 133,386,496.99 56,712,103.36
27. Non-current liabilities due within one year
Unit: RMB Yuan
Items Closing balance Opening balance
Long-term borrowings due within one year 3,197,922,526.64 2,029,254,131.97
Lease liabilities due within one year 192,218.65 245,377.46
Total 3,198,114,745.29 2,029,499,509.43
28. Other current liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Output VAT to be recognized 6,558,814.10 5,133,310.10
Total 6,558,814.10 5,133,310.10
29. Long-term borrowings
(1) Categories
Unit: RMB Yuan
Items Closing balance Opening balance
Mortgaged borrowings 33,196,688.28 37,669,008.56
Guaranteed borrowings 542,640,333.32 945,155,611.12
Credit borrowings 4,494,418,972.38 4,165,987,166.81
Total 5,070,255,993.98 5,148,811,786.49
30. Lease liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Unpaid lease payments 4,169,914.91 4,331,618.17
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Closing balance Opening balance
Less: Unrealized financing expenses 1,324,566.19 1,394,750.02
Total 2,845,348.72 2,936,868.15
31. Deferred income
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance Reasons for balance
The Company received government
Government grants grants related to assets, which were
1,063,699,676.16 55,650,000.00 46,423,802.28 1,072,925,873.88
amortized based on the depreciation
progress of corresponding assets.
Total 1,063,699,676.16 55,650,000.00 46,423,802.28 1,072,925,873.88 --
Details of government grants
Unit: RMB Yuan
Grants
included Grants Grants Other
Items Increase Related to
Opening balance into non- included into offsetting change Closing balance
assets/income
operating other income relevant cost s
revenue
Special funds for
Biological Fermentation 427,578,840.00 24,668,010.00 402,910,830.00 Related to assets
Industrial Park Project
Special funds for
enterprise development 74,962,651.55 4,836,300.10 70,126,351.45 Related to assets
(Shandong Vitamins)
Special funds for joint
production project of 31,772,916.73 1,887,499.98 29,885,416.75 Related to assets
Xinhao Thermal Power
Technical renovation for
green deep processing of 34,260,000.00 34,260,000.00 Related to assets
2019
Special funds for
enterprise development 45,804,945.12 572,802.18 45,232,142.94 Related to assets
(Amino Acid)
Subsidies for land
28,308,723.84 359,094.72 27,949,629.12 Related to assets
leveling of Shandong
Enterprise development
18,847,224.88 218,907.06 18,628,317.82 Related to assets
funds of Shandong
PPS construction project
with annual output of 11,412,499.88 913,000.02 10,499,499.86 Related to assets
10,000 tons
Subsidies for PPS resin
with annual output of
5,000 tons and PPS
8,550,000.00 1,425,000.00 7,125,000.00 Related to assets
composite materials with
annual output of 6,000
tons
Enterprise development
funds of Advanced
8,491,786.07 99,125.88 8,392,660.19 Related to assets
Manufacturing Industrial
Park
Effective industrial input
6,064,800.00 478,800.00 5,586,000.00 Related to assets
expansion of 2016
Funds for key thematic
projects of industrial
revitalization and 3,924,642.86 713,571.43 3,211,071.43 Related to assets
technical renovation of
2012
96
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Grants
included Grants Grants Other
Items Increase Related to
Opening balance into non- included into offsetting change Closing balance
assets/income
operating other income relevant cost s
revenue
Fiscal subsidies for low-
6,098,560.08 120,428.58 5,978,131.50 Related to assets
rent housing
Subsidies from land
transfer fees of Shandong 4,873,021.09 125,115.78 4,747,905.31 Related to assets
dormitory
Subsidies for inputs in
biochemical infrastructure 4,580,963.84 158,885.94 4,422,077.90 Related to assets
of Shangyu
Construction project of
public testing service 3,000,000.04 500,000.00 2,500,000.04 Related to assets
platform
Subsidies for
infrastructure supporting 7,478,250.00 398,812.50 7,079,437.50 Related to assets
fees
Compensation for
resource conservation and
3,360,000.00 240,000.00 3,120,000.00 Related to assets
environmental protection
projects of 2017
Subsidies for new
materials, land and 2,432,160.00 405,360.00 2,026,800.00 Related to assets
infrastructure construction
Special fiscal funds for
revitalization of the
substantial economy
2,140,071.30 269,614.29 1,870,457.01 Related to assets
(transformation of
traditional industries) of
2017
Subsidies for RTO Project 1,266,666.90 199,999.98 1,066,666.92 Related to assets
Special subsidies for
development of marine 2,000,000.00 700,000.00 1,300,000.00 Related to assets
economy of 2017
Special subsidies for high-
quality development of 1,804,329.70 152,478.57 1,651,851.13 Related to assets
manufacturing industry
Enterprise development
fund (Shandong Fine 52,224,561.00 52,224,561.00 Related to assets
Chemical)
Special funds for Taishan
7,400,000.00 7,400,000.00 Related to assets
industry leading talents
Food security control and
emergency facilities 24,871,000.00 1,254,000.00 23,617,000.00 Related to assets
project
Policy incentives for
industrial production 24,213,221.35 1,396,916.64 22,816,304.71 Related to assets
projects of 2020
Special funds for
Heilongjiang Biological
111,810,000.00 111,810,000.00 Related to assets
Fermentation Industrial
Park Project
Incentives for enterprises
settling in Industrial
Collaborative Innovation
Center by Hangzhou Bay 24,255,416.73 1,603,100.04 22,652,316.69 Related to assets
Shangyu Economic and
Technological
Development Zone
Subsidies for upgrading
222,857.12 18,571.43 204,285.69 Related to assets
coal-fired boilers of 2017
Subsidies for low-nitrogen
465,535.75 35,357.13 430,178.62 Related to assets
transformation of gas-
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Grants
included Grants Grants Other
Items Increase Related to
Opening balance into non- included into offsetting change Closing balance
assets/income
operating other income relevant cost s
revenue
fired boilers of Xinchang
County
Subsidy for new PPS
material construction
15,000,000.00 15,000,000.00 Related to assets
project with an annual
output of 15000 tons
Digital (intelligent)
demonstration workshop 2,000,000.00 78,431.36 1,921,568.64 Related to assets
project award of 2021
Incentive policies and
funds for energy-saving
technological
1,000,000.00 33,613.44 966,386.56 Related to assets
transformation projects of
industrial enterprises of
2020
Enterprise Development
18,000,000.00 18,000,000.00 Related to assets
Fund (amino acid)
NHU general technology
and product R & D and
manufacturing service 19,650,000.00 233,928.57 19,416,071.43 Related to assets
integration industrial
chain project
Special funds for
20,169,603.37 443,360.92 19,726,242.45 Related to assets
technical renovation
Incentives for investment
24,982,141.71 127,033.56 24,855,108.15 Related to assets
promotion
Special fiscal supporting
funds for high-quality
development (investment
4,875,100.00 58,036.90 4,817,063.10 Related to assets
projects) of manufacturing
industry of Xinchang
County of 2021
Special funds for
supporting advanced
manufacturing industry 19,650,000.00 233,928.57 19,416,071.43 Related to assets
and modern service
industry
Other piecemeal subsidies 9,547,185.25 1,464,716.71 8,082,468.54 Related to assets
Total 1,063,699,676.16 55,650,000.00 46,423,802.28 1,072,925,873.88
Note: Please refer to item VII 59 of this section for details on government grants included in profit or loss.
32. Share capital
Unit: RMB Yuan
Movements
Items Opening balance Closing balance
Issue of new Bonus Reserve transferred to Others Subtotal
shares shares shares
Total shares 2,578,394,760.00 512,512,596.00 512,512,596.00 3,090,907,356.00
Other remarks, including remarks on current movements and reasons for movements:
Pursuant to the 2021 profit distribution plan deliberated and approved by the general meeting of 2021, based on 2,562,562,984 shares
(the total share capital of the company at that time, which was 2,578,394,760 shares, excluded 15,831,776 repurchased shares),the
Company increased shares at 2 shares per 10 shares by converting capital reserve to all shareholders. After the increase, the total share
capital amounted to RMB 3,090,907,356. Such capital increase had been verified by Pan-China Certified Public Accountants LLP,
and a Capital Verification Report numbered PCCPACVR [2022] 230 was issued thereon.
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
33. Capital reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Share/capital premium 3,847,505,213.92 0.00 512,512,596.00 3,334,992,617.92
Other capital reserve 273,557,867.04 5,043,725.52 0.00 278,601,592.56
Total 4,121,063,080.96 5,043,725.52 512,512,596.00 3,613,594,210.48
Other remarks, including remarks on current movements and reasons for movements:
Current decrease of capital premium (share premium) was due to conversion of capital reserve to share capital. Please refer to item
VII 32 of this section for details. Current increase of other capital reserve was due to changes in the Company’s proportionate share
in net assets of the associate Zhejiang Chunhui Environmental Protection Energy Co., Ltd. arising from capital increase made by
investors.
34. Treasury shares
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Treasury shares 320,360,784.48 179,698,926.77 500,059,711.25
Total 320,360,784.48 179,698,926.77 500,059,711.25
Other remarks, including remarks on current movements and reasons for movements:
Current increase of treasury shares was due to the repurchase of public shares by the Company for the purpose of equity incentive
plan and employee stock ownership plan.
35 Other comprehensive income (OCI)
Unit: RMB Yuan
Current period cumulative
Less: OCI Less: OCI
Opening previously previously
Current period Closing
Items recognized but recognized but Less: Attributable to
balance cumulative Attributable to balance
transferred to transferred to Incom non-controlling
before income parent company
profit or loss retained e tax shareholders
tax
in current earnings in
period current period
Items not to
be reclassified
30,637,30
subsequently -1,614,172.31 32,372,570.30 32,251,478.10 121,092.20
to profit or 5.79
loss
Including:
Other
comprehensiv
e income to be 506,954.4
506,954.43
transferred to 3
profit or loss
under equity
method
Translation
30,130,35
-2,121,126.74 32,372,570.30 32,251,478.10 121,092.20
reserves 1.36
Total 30,637,30
-1,614,172.31 32,372,570.30 32,251,478.10 121,092.20
5.79
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
36. Special reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Work safety fund 12,692,218.51 13,360,150.22 8,911,057.34 17,141,311.39
Total 12,692,218.51 13,360,150.22 8,911,057.34 17,141,311.39
37. Surplus reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 1,289,197,380.00 1,289,197,380.00
Total 1,289,197,380.00 1,289,197,380.00
38. Undistributed profit
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Opening balance before adjustment 14,120,605,163.26
Total undistributed profits at the beginning of the
31,860,364.91
adjustment period (increase +, decrease -)
Opening balance after adjustment 14,152,465,528.17 11,515,384,739.95
Add: Net profit attributable to owners of the
2,213,877,419.25 4,324,150,263.31
parent company
Less: Appropriation of statutory surplus reserve 214,866,230.00
Dividend payable on ordinary shares 1,793,794,088.80 1,504,063,610.00
Closing balance 14,572,548,858.62 14,120,605,163.26
Details of undistributed profits at the beginning of adjustment period:
Due to the retroactive adjustment of the accounting standards for business enterprises and relevant new regulations, the undistributed
profit at the beginning of the period was RMB 31,860,364.91.
Other remarks:
Pursuant to the 2021 profit distribution plan deliberated and approved by the general meeting of 2021, based on 2,562,562,984 shares
(the total share capital of the company at that time, which was 2,578,394,760 shares, excluded 15,831,776 repurchased shares), the
Company distributed cash dividend of 7.00 yuan (tax included) per 10 shares to all shareholders. Cash dividend distributed totaled
RMB 1,793,794,088.80(tax included).
39. Operating revenue/Operating cost
Unit: RMB Yuan
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 8,115,267,916.02 4,789,134,207.58 7,266,491,924.65 3,776,567,468.03
Other operations 99,771,361.01 155,988,595.81 73,632,385.46 46,180,234.17
Total 8,215,039,277.03 4,945,122,803.39 7,340,124,310.11 3,822,747,702.20
Details of revenue:
Unit: RMB Yuan
100
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Categories of contracts Total
By operating region
Including: Domestic 4,064,052,343.93
Overseas 4,150,986,933.10
Subtotal 8,215,039,277.03
By product
Including: Nutrition 5,768,862,111.12
Flavor and fragrance 1,522,994,415.83
New materials 552,514,423.91
Others 370,668,326.17
Subtotal 8,215,039,277.03
By revenue recognition time
Including: Goods (transferred at a point in time) 8,215,039,277.03
Subtotal 8,215,039,277.03
By sales channel
Including: Direct sales 6,536,368,733.62
Agent sales 1,678,670,543.41
Subtotal 8,215,039,277.03
Information related to performance obligations:
None.
Information related to transaction price allocated to the remaining performance obligations:
As of June 30, 2022, revenue corresponding to performance obligations for which the Company has entered into contracts but not yet
performed or fulfilled amounted to RMB 3,176.65 mn, of which, RMB 3,176.65 mn is expected to be recognized as revenue in 2022.
40. Taxes and surcharges
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Urban maintenance and construction tax 12,713,819.69 16,593,941.36
Education surcharge (local education
10,775,889.86 15,258,637.11
surcharge)
Housing property tax 15,431,428.20 11,778,391.04
Land use tax 5,892,341.09 12,989,995.35
Vehicle and vessel use tax 23,132.71 24,675.80
Stamp duty 5,558,733.12 2,929,669.52
Land appreciation tax 361,871.13 640,367.32
Environmental protection tax 853,455.25 578,646.58
Total 51,610,671.05 60,794,324.08
41. Selling expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Sales commission and customs declaration
12,731,579.13 17,692,240.72
charges
Advertising and promotion expenses, 4,600,887.46 3,567,586.35
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2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Current period cumulative Preceding period comparative
business entertainment expenses
Employee benefits 27,765,835.78 23,212,723.68
Office expenses, business traveling
7,801,633.19 5,649,153.96
expenses
Insurance fees 1,466,649.89
Others 4,377,961.92 3,891,220.30
Total 57,277,897.48 55,479,574.90
42. Administrative expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Employee benefits 115,390,102.23 91,901,943.55
Office expenses, business traveling
13,377,152.20 15,975,577.72
expenses
Depreciation, amortization of intangible
46,129,788.87 42,187,840.96
assets
Business entertainment expenses 12,437,740.12 9,654,999.32
Insurance premiums 7,564,296.84 7,655,409.05
Consulting fee 9,456,199.96 7,393,223.96
Others 7,929,542.19 12,736,919.54
Total 212,284,822.41 187,505,914.10
43. R&D expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Direct input 146,667,952.04 126,033,421.52
Employee benefits 204,036,669.50 149,468,367.40
Depreciation, amortization of intangible
32,048,604.87 24,293,575.58
assets
Office expenses, business traveling
21,270,730.68 15,628,605.63
expenses
Outsourcing expenses 5,698,974.07 13,402,568.01
Others 30,634,321.48 22,706,226.41
Total 440,357,252.64 351,532,764.55
44. Financial expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Interest expenses 152,357,156.76 162,484,715.95
Less: Interest income 76,211,850.51 72,107,022.92
Losses on foreign exchange (or less: gains) -61,972,039.28 43,236,369.19
Others 8,057,786.99 10,916,076.87
Total 22,231,053.96 144,530,139.09
45. Other income
Unit: RMB Yuan
102
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
Items Current period cumulative Preceding period comparative
Government grants related to assets [Note] 46,423,802.28 40,228,500.25
Government grants related to income
39,098,377.26 33,328,436.43
[Note]
Refund of handling fees for withholding
1,104,047.36 1,139,113.99
individual income tax
Total 86,626,226.90 74,696,050.67
Note: Please refer to item VII 59 of this section for details on government grants included in other income.
46. Investment income
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Investment income from long-term equity
25,402,893.70 15,735,226.24
investments under equity method
Investment income from disposal of
-2,764,801.12 -370,729.11
financial instruments
Including: Financial assets classified as at
7,739,778.29 2,643,037.39
fair value through profit or loss
Financial liabilities classified as at fair
-10,504,579.41 -3,013,766.50
value through profit or loss
Investment income from bank financial
28,841,651.61 29,617,969.78
products and structured deposits
Total 51,479,744.19 44,982,466.91
47. Gains on changes in fair value
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Held-for-trading financial liabilities -17,291,740.52 -1,567,482.48
Including: Gains on changes in fair value
arising from financial liabilities classified -17,291,740.52 -1,567,482.48
as at fair value through profit or loss
Held-for-trading financial assets 29,128,440.56 25,239,240.62
Including: Gains on changes in fair value
arising from financial assets classified as at 29,128,440.56 25,239,240.62
fair value through profit or loss
Total 11,836,700.04 23,671,758.14
48. Credit impairment loss
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Bad debts -10,613,626.22 -33,637,204.20
Total -10,613,626.22 -33,637,204.20
49. Assets impairment loss
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Inventory write-down loss -7,890,179.58 -6,714,482.90
Total -7,890,179.58 -6,714,482.90
103
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
50. Gains on asset disposal
Unit: RMB Yuan
Sources Current period cumulative Preceding period comparative
Gains on disposal of non-current assets 6,674,850.81 1,065,564.79
Total 6,674,850.81 1,065,564.79
51. Non-operating revenue
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative Amount included in non-
recurring profit or loss
Indemnity income 949,584.99 9,044,364.95 949,584.99
Others 1,074,489.85 1,302,076.50 1,074,489.85
Total 2,024,074.84 10,346,441.45 2,024,074.84
52. Non-operating expenditures
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative Amount included in non-
recurring profit or loss
Donation expenditures 1,416,764.60 877,525.00 1,416,764.60
Others 913,552.36 1,041,504.53 913,552.36
Total 2,330,316.96 1,919,029.53 2,330,316.96
53. Income tax expenses
(1) Details
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Current period income tax expenses 346,750,734.36 374,095,395.38
Deferred income tax expenses 53,349,189.26 20,614,465.84
Total 400,099,923.62 394,709,861.22
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB Yuan
Items Current period cumulative
Profit before tax 2,623,962,250.12
Income tax expenses based on statutory/applicable tax rate 393,594,337.52
Effect of different tax rate applicable to subsidiaries -17,190,336.70
Effect of prior income tax reconciliation 6,657,405.02
Effect of non-taxable income 5,589,023.26
Effect of non-deductible costs, expenses and losses 1,376,942.78
Effect of utilization of deductible losses not previously recognized as deferred tax
-16,496,598.96
assets
Effect of deducible temporary differences or deductible losses not recognized as
95,527,041.59
deferred tax assets in the current period
Effect of extra deduction of R&D expenses -68,957,890.89
Income tax expenses 400,099,923.62
104
2022 Semi-Annual Report of Zhejiang NHU Co., Ltd.
54. Other comprehensive income
Please refer to item VII 35 of this section for details.
55. Notes to items of the cash flow statement
(1) Other cash receipts related to operating activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Interest income from cash in bank 75,485,329.15 72,170,716.37
Receipt of government grants 95,852,424.62 82,860,435.49
Recovery of temporary borrowings and
5,016,089.54 4,650.00
security deposits
Other receipts and net current accounts 5,326,081.20 11,267,812.52
Total 181,679,924.51 166,303,614.38
(2) Other cash payments related to operating activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
R&D expenditures in the form of cash 2,053,649.86 9,072,525.23
Office expenses and business traveling
13,788,936.02 11,497,951.02
expenses
Advertising and promotion expenses,
8,869,953.87 10,942,559.78
business entertainment expenses
Sales commission and customs declaration
13,003,888.95 8,641,852.83
charges
Insurance expenses 2,327,776.16 5,366,502.83
Other payments and net current accounts 106,597,455.76 146,673,321.02
Total 146,641,660.62 192,194,712.71
(3) Other cash receipts related to investing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Redemption of financial products 1,800,000,000.00 1,800,000,000.00
Recovery of borrowings 13,423,350.06
Other receipts and net current accounts 14,294,950.48
Total 1,827,718,300.54 1,800,000,000.00
(4) Other cash payments related to investing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Payments for borrowings 36,775,804.59
Payments for purchase of financial
920,000,000.00 1,520,000,000.00
products and structured deposits
Repurchase of treasury shares 179,698,926.77
Total 1,136,474,731.36 1,520,000,000.00
105
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
(5) Other cash payments related to financing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Payments for bank financing handling
3,305,539.56 2,069,877.48
charges
Payments of handling charges for issuing
576,792.00 1,293,530.21
letters of guarantee for borrowings
Total 3,882,331.56 3,363,407.69
56. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB Yuan
Supplement information Current period cumulative Preceding period comparative
1. Reconciliation of net profit to cash flows -- --
from operating activities:
Net profit 2,223,862,326.50 2,435,315,595.30
Add: Provision for assets impairment loss 18,503,805.80 40,351,687.10
Depreciation of fixed assets, oil and gas
623,703,868.71 578,809,640.58
assets, productive biological assets
Depreciation of right-of-use assets 657,653.96 448,385.93
Amortization of intangible assets 19,125,769.24 16,731,412.82
Amortization of long-term prepayments 3,316,666.66 1,942,593.41
Losses on disposal of fixed assets,
intangible assets and other long-term -6,674,850.81 -1,065,564.79
assets (Less: gains)
Fixed assets retirement loss (Less:
17,993.76
gains)
Losses on changes in fair value (Less:
-11,836,700.04 -23,671,758.14
gains)
Financial expenses (Less: gains) 163,843,989.92 209,472,718.30
Investment losses (Less: gains) -51,479,744.19 -44,982,466.91
Decrease of deferred tax assets (Less:
-12,176,568.21 -4,073,229.10
increase)
Increase of deferred tax liabilities
65,525,757.47 24,687,694.94
(Less: decrease)
Decrease of inventories (Less:
-1,358,969,145.31 -401,877,126.78
increase)
Decrease of operating receivables
125,300,272.14 -234,285,135.31
(Less: increase)
Increase of operating payables (Less:
-560,246,363.64 -308,184,944.42
decrease)
Others
Net cash flows from operating
1,242,456,738.20 2,289,637,496.69
activities
2. Significant investing and financing
activities not related to cash receipts and
payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets leased in under finance leases
3. Net changes in cash and cash equivalents:
Cash at the end of the period 6,451,708,569.16 6,182,163,497.57
Less: Cash at the beginning of the period 5,714,537,538.23 4,669,306,776.09
106
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Supplement information Current period cumulative Preceding period comparative
Add: Cash equivalents at the end of the
period
Less: Cash equivalents at the beginning of
the period
Net increase of cash and cash equivalents 737,171,030.93 1,512,856,721.48
(2) Net cash paid for acquisition of subsidiaries in the current period
Unit: RMB Yuan
Items Amount
Cash or cash equivalents paid in the current period for business
5,406,540.13
combination occurred in the current period
Including：NHU/Chr.Olesen Latin America A/S[Note] 5,406,540.13
Add: cash or cash equivalents paid in the current period for
78,845.01
business combinations occurred in previous periods
Including：NHU/Chr.Olesen Latin America A/S 78,845.01
Net cash paid for acquisition of subsidiaries 5,485,385.14
[Note] NHU/CHR.OLESEN LATIN AMERICA A/S holds two subsidiaries, respectively NHU/CHR.OLESEN BRASIL LTDA.，
holding 100%, and CHR.OLESEN MEXICO SAPI DE CV, holding 88%.
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Items Closing balance Opening balance
I. Cash 6,451,708,569.16 5,714,537,538.23
Including: Cash on hand 9,862.96 14,537.85
Cash in bank on demand for payment 6,451,698,706.20 5,684,842,466.04
Other cash and bank balances on
29,680,534.34
demand for payment
II. Cash and cash equivalents at the end of
6,451,708,569.16 5,714,537,538.23
the period
Other Remarks:
Closing balance of cash and bank balances amounted to 6,590,012,908.26 yuan, including deposit for bank acceptance of
108,852,086.25 yuan, deposit for letters of credit of 27,364,565.06 yuan, deposit for engineering labor costs of 1,711,851.11 yuan,
deposit for ETC of 16,500.00 yuan, deposit for water fees of 359,336.68 yuan, which was not cash and cash equivalents.
Openning balance of cash and bank balances amounted to 5,952,909,626.94 yuan, including deposit for bank acceptance of
149,724,511.46 yuan, deposit for letters of credit of 86,212,564.30 yuan, deposit for engineering labor costs of 1,654,664.15 yuan,
deposit for ETC of 16,500.00 yuan, deposit for water fees of 358,792.30 yuan and deposit for construction safety of 405,056.50 yuan,
which was not cash and cash equivalents.
57. Assets with title or use right restrictions
Unit: RMB Yuan
Items Closing carrying amount Reasons for restrictions
Please refer to supplement information to
Cash and bank balances 138,304,339.10 the cash flow statement of this section for
details.
Notes receivable It is pledged due to the issuance of bank
209,801,476.61
acceptance, cannot be withdrawn freely,
107
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Items Closing carrying amount Reasons for restrictions
and its use is limited.
Fixed assets 76,487,526.23 Mortgaged for bank borrowings.
Intangible assets 9,186,528.93 Mortgaged for bank borrowings.
It is pledged due to the issuance of bank
Receivables financing 130,363,316.90 acceptance, cannot be withdrawn freely,
and its use is limited
Total 564,143,187.77 --
58. Monetary items in foreign currencies
(1) Details
Unit: RMB Yuan
Items Closing balance in foreign Exchange rate RMB equivalent at the end of the
currencies period
Cash and bank balances 629,151,551.17
Including: USD 62,634,339.30 6.7114 420,364,104.78
EUR 28,119,483.63 7.0084 197,072,589.07
HKD 1,172,063.56 0.8552 1,002,348.76
JPY 154,440,443.00 0.0491 7,583,025.75
SGD 7,785.00 4.8170 37,500.35
BRL 1,824,070.88 1.2813 2,337,182.02
MXN 618,370.72 0.3332 206,041.12
DKK 582,423.39 0.9422 548,759.32
Accounts receivable 2,199,825,187.75
Including: USD 285,423,531.03 6.7114 1,915,591,486.15
EUR 25,991,439.78 7.0084 182,158,406.55
JPY 32,800,000.00 0.0491 1,610,480.00
GBP 56,400.00 8.1365 458,898.60
BRL 54,610,749.91 1.2813 69,972,753.86
MXN 90,135,542.00 0.3332 30,033,162.59
Other receivables 51,386,506.35
Including: USD 3,779,919.03 6.7114 25,368,548.58
EUR 568,031.29 7.0084 3,980,990.49
HKD 31,700.00 0.8552 27,109.84
BRL 2,189,291.12 1.2813 2,805,138.71
MXN 57,637,211.08 0.3332 19,204,718.73
Short-term borrowings 493,033,647.49
Including: USD 5,935,604.38 6.7114 39,836,215.24
EUR 64,664,892.45 7.0084 453,197,432.25
Accounts payable 132,658,691.80
Including: USD 896,983.77 6.7114 6,020,016.87
EUR 9,785,772.00 7.0084 68,582,604.48
BRL 45,310,286.78 1.2813 58,056,070.45
Other payables 71,112,333.11
Including: USD 10,144,183.64 6.7114 68,081,674.08
108
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Items Closing balance in foreign Exchange rate RMB equivalent at the end of the
currencies period
EUR 39,019.37 7.0084 273,463.35
HKD 23,457.00 0.8552 20,060.43
MXN 8,214,691.64 0.3332 2,737,135.25
Non-current liabilities due within
6,832,476.87
one year
Including: EUR 961,662.00 7.0084 6,739,711.96
HKD 108,471.60 0.8552 92,764.91
Long-term borrowings 33,196,688.28
Including: EUR 4,736,700.00 7.0084 33,196,688.28
(2) Remarks on overseas operations. For significant overseas operating entities, their main operating places, functional
currencies and adoption basis shall be disclosed. Reasons for any changes in functional currency shall also be disclosed.
√ Applicable □ Not applicable
NHU EUROPE GmbH is a holding subsidiary of the subsidiary NHU (Hong Kong) Trading Co., Ltd. with the holding proportion of
51%; NHU Performance Materials GmbH is a wholly-owned subsidiary of the subsidiary NHU (Hong Kong) Trading Co., Ltd.;
Bardoterminal GmbH is a wholly-owned subsidiary of NHU EUROPE GmbH. The above three entities are all located in Luneburg,
Germany, with EUR as functional currency. NHU/CHR. Olesen Latin America a / S is a holding subsidiary of the company's subsidiary
NHU (Hong Kong) Trading Co., Ltd., with a shareholding ratio of 51%, located in gentovt, Denmark, and the functional currency is
euro; NHU/CHR. Olesen Brasil LTDA. Is nhu / Chr Olesen Latin America a / s, a wholly-owned subsidiary, is located in Sao Paulo,
Brazil, and its functional currency is Brazilian real; CHR. Olesen Mexico SAPI de CV is nhu / Chr Olesen Latin America a / S is a
holding subsidiary of Olesen Latin America a /s, with a shareholding ratio of 88%. It is located in cretaro, Mexico, and its functional
currency is Mexican peso.NHU Singapore PTE. LTD. is a wholly-owned subsidiary of the Company. It is located in Singapore, with
SGD as functional currency.
59. Government grants
(1) Government grants related to assets
Unit: RMB Yuan
Opening Closing balance
Items Increase Amortization Amortization Remarks
balance of of deferred
presented under
deferred income income
Pursuant to the
Special funds for
Biological Fermentation 427,578,840.00 24,668,010.00 402,910,830.00 Other income document numbered
Sui Jing Kai Guan
Industrial Park Project
[2018] 55
Special funds for
enterprise development 74,962,651.55 4,836,300.10 70,126,351.45 Other income
(Shandong Vitamins)
Pursuant to the
Special funds for joint
production project of 31,772,916.73 1,887,499.98 29,885,416.75 Other income document numbered
Sui Jing Kai Guan
Xinhao Thermal Power
Wei Han [2018] 123
Pursuant to the
Technical renovation for
document numbered
green deep processing of 34,260,000.00 - 34,260,000.00 Other income
Zhe Fa Gai Mi
2019
[2019] 127
Pursuant to the
documents
Special funds for
enterprise development 45,804,945.12 572,802.18 45,232,142.94 Other income numbered Wei Bin
Cai Zhi Zi [2018] 40
(Amino Acid)
and Wei Bin Cai Jin
Yu [2021] 44
109
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Opening Closing balance
Items Increase Amortization Amortization Remarks
balance of of deferred
presented under
deferred income income
Subsidies for land leveling
28,308,723.84 359,094.72 27,949,629.12 Other income
of Shandong
Pursuant to the
documents
numbered Wei Bin
Enterprise development Other income Cai Zhi Zi [2014]
18,847,224.88 218,907.06 18,628,317.82
funds of Shandong 513, Wei Bin Cai
Zhi Zi [2016] 194
and Wei Bin Cai Zhi
Zi [2017] 307
PPS construction project
with annual output of 11,412,499.88 913,000.02 10,499,499.86 Other income
10,000 tons
Subsidies for PPS resin
with annual output of
5,000 tons and PPS
8,550,000.00 1,425,000.00 7,125,000.00 Other income
composite materials with
annual output of 6,000
tons
Enterprise development
funds of Advanced
8,491,786.07 99,125.88 8,392,660.19 Other income
Manufacturing Industrial
Park
Effective industrial input
6,064,800.00 478,800.00 5,586,000.00 Other income
expansion of 2016
Special funds for
new cephalosporin
antibiotics project
with annual output
of 10 tons according
to the document
Funds for key thematic
numbered Zhe Cai
projects of industrial
3,924,642.86 713,571.43 3,211,071.43 Other income Qi [2012] 276 issued
revitalization and technical
by Department of
renovation of 2012
Finance of Zhejiang
Province and
Economy and
Informatization
Commission of
Zhejiang Province
Fiscal subsidies for low-
6,098,560.08 120,428.58 5,978,131.50 Other income
rent housing
Subsidies from land
transfer fees of Shandong 4,873,021.09 125,115.78 4,747,905.31 Other income
dormitory
Subsidies for inputs in
biochemical infrastructure 4,580,963.84 158,885.94 4,422,077.90 Other income
of Shangyu
Construction project of
public testing service 3,000,000.04 500,000.00 2,500,000.04 Other income
platform
Subsidies for infrastructure
7,478,250.00 398,812.50 7,079,437.50 Other income
supporting fees
Compensation for resource
conservation and
3,360,000.00 240,000.00 3,120,000.00 Other income
environmental protection
projects of 2017
Subsidies for new
materials, land and 2,432,160.00 405,360.00 2,026,800.00 Other income
infrastructure construction
110
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Opening Closing balance
Items Increase Amortization Amortization Remarks
balance of of deferred
presented under
deferred income income
Special fiscal funds for
revitalization of the Pursuant to the
substantial economy document numbered
2,140,071.30 269,614.29 1,870,457.01 Other income
(transformation of Xin Cai Qi [2019]
traditional industries) of 151
2017
Pursuant to the
Subsidies for RTO Project 1,266,666.90 199,999.98 1,066,666.92 Other income document numbered
Wei Cai Qi Zhi
[2014] 207
Pursuant to the
Special subsidies for
document numbered
development of marine 2,000,000.00 700,000.00 1,300,000.00
Shang Yu Cai Jian
economy of 2017
[2018] 12
Pursuant to the
Special subsidies for high-
document numbered
quality development of 1,804,329.70 152,478.57 1,651,851.13 Other income
Xin Jing Xin [2020]
manufacturing industry
79
Pursuant to the
Enterprise development
document numbered
fund (Shandong Fine 52,224,561.00 - 52,224,561.00
Wei Bin Cai Zhi Zi
Chemical)
[2020] 34
Pursuant to the
documents
numbered Lu Zheng
Special funds for Taishan Ban Zi [2021] 13, Lu
industry leading talents 7,400,000.00 - 7,400,000.00 Zu Zi [2021] 24,
project Wei Bin Cai Xing
Zhi Zi [2021] 1, and
Wei Cai Xing Zhi
[2021] 16
Food security control and
emergency facilities Pursuant to the
project – investment plan Other income document numbered
24,871,000.00 1,254,000.00 23,617,000.00
within budget of the Hei Fa Gai Tou Zi
central government of [2020] 542
2020
Pursuant to the
Policy incentives for
document numbered
industrial production 24,213,221.35 1,396,916.64 22,816,304.71 Other income
Hei Cai Zhi (Chan
projects of 2020
Ye) [2020] 558
Special funds for
Heilongjiang Biological
111,810,000.00 - 111,810,000.00
Fermentation Industrial
Park Project
Incentives for enterprises
settling in Industrial
Collaborative Innovation
Center by Hangzhou Bay 24,255,416.73 1,603,100.04 22,652,316.69 Other income
Shangyu Economic and
Technological
Development Zone
Pursuant to the
Subsidies for upgrading Other income document numbered
222,857.12 18,571.43 204,285.69
coal-fired boilers of 2017 Xin Cai Jian [2018]
204
Subsidies for low-nitrogen Pursuant to the
transformation of gas-fired Other income document numbered
465,535.75 35,357.13 430,178.62
boilers of Xinchang Xin Huan Yu [2018]
County 25
Subsidy for new PPS
15,000,000.00 - 15,000,000.00 Other income
material construction
111
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Opening Closing balance
Items Increase Amortization Amortization Remarks
balance of of deferred
presented under
deferred income income
project with an annual
output of 15000 tons
Digital (intelligent)
Hgxgjf [2021] No.
demonstration workshop 2,000,000.00 78,431.36 1,921,568.64 Other income
196
project award of 2021
Incentive policies and
funds for energy-saving
technological Hgxgjf [2021] No.
1,000,000.00 33,613.44 966,386.56 Other income
transformation projects of 133
industrial enterprises of
2020
Enterprise Development
18,000,000.00 - 18,000,000.00 Other income
Fund (amino acid)
NHU general technology
and product R & D and
Fgtz [2021] No.
manufacturing service 19,650,000.00 233,928.57 19,416,071.43 Other income
1117
integration industrial chain
project
Special funds for technical
20,169,603.37 443,360.92 19,726,242.45 Other income
renovation
Pursuant to the
Incentives for investment Other income document numbered
24,982,141.71 127,033.56 24,855,108.15
promotion Wei Bin Cai Gong
Zhi Zi [2021] 14
Special fiscal supporting
funds for high-quality Pursuant to the
development (investment Other income document numbered
4,875,100.00 58,036.90 4,817,063.10
projects) of manufacturing Xin Jing Xin [2021]
industry of Xinchang 50
County of 2021
Special investment plan
within budget of the
Pursuant to the
central government for
document numbered
supporting advanced 19,650,000.00 233,928.57 19,416,071.43 Other income
Fa Gai Tou Zi
manufacturing industry
[2021] 1117
and modern service of
2021
Other piecemeal subsidies
- investment plan within
9,547,185.25 1,464,716.71 8,082,468.54 Other income
budget of the central
government of 2020
Subtotal 1,063,699,676.1 1,072,925,873.8
55,650,000.00 46,423,802.28
6 8
(2) Government grants related to income and used to compensate incurred relevant costs, expenses or losses
Unit: RMB Yuan
Items Amount Presented under Remarks
Special subsidies 1,390,000.00 Other income Related to income
Government subsidies 13,608,737.71 Other income Related to income
Other subsidies 24,099,639.55 Other income Related to income
Subtotal 39,098,377.26
(3) In the current period, government grants included into profit or loss totaled RMB 85,522,179.54.
112
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
VIII. Changes in the consolidation scope
1. Business combination not under common control.
(1) Business combination not under the same control in the current period
Unit: RMB Yuan
Net profit
Income of
of the
Capital the acquiree
Basis for acquiree
Equity Capital contributio Equity from the
Purchase determining from the
Companies acquisition contributio n acquisition purchase
date the purchase purchase
date n proportion method date to the
date date to the
(%) end of the
end of the
period
period
NHU/Chr. Complete
Olesen industrial
January 6, 5,406,540.1 January 342,567,458. 2,433,913.9
Latin 51.00% Acquisition and
2022 3 6, 2022 04 3
America commercial
A/S[Note] registration
[Note] NHU/CHR.OLESEN LATIN AMERICA A/S holds two subsidiaries, respectively NHU/CHR.OLESEN BRASIL LTDA.，
holding 100%, and CHR.OLESEN MEXICO SAPI DE CV, holding 88%.
(2) Combination cost and goodwill
Unit: RMB Yuan
Combination cost NHU/Chr.Olesen Latin America A/S
Cash 5,406,540.13
Total: 5,406,540.13
Less：Fair value share of identifiable net assets obtained 996,534.80
Amount of goodwill / combination cost less than the fair value of
4,410,005.33
identifiable net assets obtained
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Unit: RMB Yuan
NHU/Chr.Olesen Latin America A/S
Items
Fair value on the purchase date Book value on the purchase date
Assets: 142,599,323.01 142,599,323 .01
Cash and bank balances 20,215,114.52 20,215,114.52
Accounts receivable 51,260,895.20 51,260,895.20
Inventories 59,256,090.18 59,256,090.18
Advances paid 89,247.04 89,247.04
Other receivables 11,777,976.07 11,777,976.07
Debt： 140,645,333.21 140,645,333.21
Borrowings 9,272,894.89 9,272,894.89
Accounts payable 123,832,330.35 123,832,330.35
Taxes and rates payable 7,401,257.04 7,401,257.04
Other payables 138,850.93 138,850.93
113
2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
NHU/Chr.Olesen Latin America A/S
Items
Fair value on the purchase date Book value on the purchase date
Equity: 1,953,989.80 1,953,989.80
Less:Non-controlling interest
Net assets acquired 1,953,989.80 1,953,989.80
IX. Interest in other entities
1. Interest in subsidiaries
(1) Composition of the group
Holding proportion (%)
Subsidiaries Main operating Place of Business nature Acquisition
place registration Direct Indirect method
Shangyu NHU Bio-Chem Shangyu, Shangyu, Manufacturing 100.00% Establishment
Co., Ltd. Zhejiang Zhejiang
Shandong NHU Weifang, Weifang, Manufacturing 100.00% Establishment
Pharmaceutical Co., Ltd. Shandong Shandong
NHU (Hong Kong) Trading Hong Kong, Hong Kong, Commerce 100.00% Establishment
Co., Ltd. China China
Zhejiang NHU Special Shangyu, Shangyu, Manufacturing 100.00% Establishment
Materials Co., Ltd. Zhejiang Zhejiang
Shandong NHU Amino- Weifang, Weifang, Manufacturing 100.00% Establishment
acids Co., Ltd. Shandong Shandong
NHU EUROPE GmbH Luneburg, Luneburg, Trade 51% [Note 1] Establishment
Germany Germany
NHU/CHR.OLESEN
Gentovt, Gentovt, Trade 51% [Note 1]
LATIN Denmark Denmark
AMERICA A/S
山东新和成控股有限公司
Weifang, Weifang, Service 100.00% Establishment
(Shandong NHU Holdings
Shandong Shandong
Co., Ltd.*)
Shandong NHU Vitamins Weifang, Weifang, Manufacturing 100.00% Establishment
Co., Ltd. Shandong Shandong [Note 2]
Heilongjiang NHU Suihua, Suihua, Manufacturing 100.00% Establishment
Biotechnology Co., Ltd. Heilongjiang Heilongjiang
NHU Singapore PTE. LTD. Singapore Singapore Trade 100.00% Establishment
Remarks on inconsistency between holding proportion and voting rights proportion in subsidiaries:
[Note 1] The Company holds shares through NHU (Hong Kong) Trading Co., Ltd.
[Note 2] The Company holds shares through Shandong NHU Holdings Co., Ltd.
(2) Significant not wholly-owned subsidiaries
Unit: RMB Yuan
Holding proportion of Non-controlling Dividend declared to
Subsidiaries Closing balance of non-
non-controlling shareholders’ profit or non-controlling
controlling interest
shareholders loss shareholders
NHU EUROPE GmbH 49.00% 8,737,310.78 70,504,576.24
NHU/CHR.OLESEN
LATIN AMERICA 49.00% 1,247,596.47 3,332,274.62
A/S[Note]
Total 9,984,907.25 73,836,850.86
[Note] NHU/CHR.OLESEN LATIN AMERICA A/S holds two subsidiaries, respectively NHU/CHR.OLESEN BRASIL LTDA.，
holding 100%, and CHR.OLESEN MEXICO SAPI DE CV, holding 88%.
* The English name is for identification purpose only.
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
(3) Main financial information of significant not wholly-owned subsidiaries
Unit: RMB Yuan
Closing balance
Subsidiaries
Current assets Non-current Total assets Current liabilities Non-current Total liabilities
assets liabilities
NHU EUROPE GmbH 847,997,714.20 92,274,363.04 940,272,077.24 763,188,498.68 33,196,688.28 796,385,186.96
NHU/CHR.OLESEN
LATIN 425,076,866.06 293,387.18 425,370,253.24 419,019,146.21 89,057.77 419,108,203.98
AMERICA A/S
Total 1,273,074,580.26 92,567,750.22 1,365,642,330.48 1,182,207,644.89 33,285,746.05 1,215,493,390.94
(Continued)
Opening balance
Subsidiaries Non-current
Current assets Total assets Current liabilities Non-current Total liabilities
assets liabilities
NHU EUROPE
860,365,259.01 95,891,993.02 956,257,252.03 788,525,281.39 37,669,008.56 826,194,289.95
GmbH
NHU/CHR.OLESEN
LATIN
AMERICA A/S
Total 860,365,259.01 95,891,993.02 956,257,252.03 788,525,281.39 37,669,008.56 826,194,289.95
Unit: RMB Yuan
Current period cumulative Preceding period comparative
Cash flows Cash flows
Subsidiaries Total Total
Operating Net profit from Operating Net profit from
comprehensi comprehensi
revenue operating revenue operating
ve income ve income
activities activities
-
NHU EUROPE 810,123,339.4 17,831,246. 13,823,928.2 880,665,472. 17,013,156. 10,938,293.8 64,150,528.
2,752,415.9
GmbH 2 48 0 68 89 7 47
7
NHU/CHR.OLES -
342,567,458.0 2,433,913.9
EN LATIN 3,388,203.70 24,173,454.
4 3
AMERICA A/S 73
-
1,152,690,797. 20,265,160. 17,212,131.9 880,665,472. 17,013,156. 10,938,293.8 64,150,528.
Total 26,925,870.
46 41 0 68 89 7 47
70
2. Interest in joint venture or associates
(1) Significant joint ventures or associates
Holding proportion (%) Accounting
treatment on
Joint ventures or associates Main operating Place of Business nature investments in joint
place registration Direct Indirect
ventures or
associates
Zhejiang Chunhui
Shangyu, Shangyu, Manufacturing 29.9307%[Note] Equity method
Environmental Protection
Zhejiang Zhejiang
Energy Co., Ltd.
DSM NHU Engineering Shangyu, Shangyu, Manufacturing 40.00% Equity method
Materials (Zhejiang) Co., Ltd. Zhejiang Zhejiang
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Holding proportion (%) Accounting
treatment on
Joint ventures or associates Main operating Place of Business nature investments in joint
place registration Direct Indirect
ventures or
associates
Zhejiang Saiya Chemical Shangyu, Shangyu, Manufacturing 49.00% Equity method
Materials Co., Ltd. Zhejiang Zhejiang
Explanation of the difference between the shareholding ratio in the joint venture or the associated enterprise and the voting ratio:
In the current period, the company's shareholding ratio in the associated enterprise Zhejiang Chunhui environmental protection and
energy Co., Ltd. changed, mainly due to the change in the company's share of net assets due to the capital increase of other investors
in January 2022.
(2) Main financial information of significant joint ventures
Unit: RMB Yuan
Closing balance/Current period cumulative Opening balance/Preceding period comparative
DSM NHU Zhejiang DSM NHU
Items Zhejiang Chunhui Zhejiang Saiya Zhejiang Saiya
Engineering Chunhui Engineering
Environmental Chemical Chemical
Materials Environmental Materials
Protection Energy Materials Co., Materials Co.,
(Zhejiang) Co., Protection (Zhejiang) Co.,
Co., Ltd. Ltd. Ltd.
Ltd. Energy Co., Ltd. Ltd.
Current assets 383,112,306.24 89,479,451.82 124,289,295.97 293,596,545.38 68,240,155.87 71,896,100.56
Non-current assets 602,750,213.70 18,063,832.98 148,614,323.72 559,076,086.33 13,956,368.94 157,938,616.58
Total assets 985,862,519.94 107,543,284.80 272,903,619.69 852,672,631.71 82,196,524.81 229,834,717.14
Current liabilities 172,268,311.38 116,025,007.52 44,595,001.38 199,269,854.33 97,736,253.17 15,537,056.20
Non-current
32,142,331.56 0.00 2,286,825.00 40,724,142.33 2,459,280.00
liabilities
Total liabilities 204,410,642.94 116,025,007.52 46,881,826.38 239,993,996.66 97,736,253.17 17,996,336.20
Equity attributable
to shareholders of 781,451,877.00 -8,481,722.72 226,021,793.31 612,678,635.05 -15,539,728.36 211,838,380.94
parent company
Proportionate share
233,894,016.95 -3,392,689.09 110,750,678.72 208,873,174.90 -6,215,891.34 103,800,806.66
in net assets
- Goodwill 762,611.33 762,611.33
- Unrealized profit
931,390.51 665,200.17
in internal trading
Accumulated
-3,392,689.09 -6,215,891.34
unrecognized losses
Carrying amount of
investments in 233,894,016.95 110,581,899.54 208,873,174.90 103,898,217.82
associates
Operating revenue 283,967,325.65 92,415,365.12 201,503,983.57 196,623,027.27 54,950,710.21 139,702,151.72
Net profit 70,472,241.95 7,058,005.64 13,640,166.75 49,187,541.15 -1,052,702.41 5,074,966.36
Total
comprehensive 70,472,241.95 7,058,005.64 13,640,166.75 49,187,541.15 -1,052,702.41 5,074,966.36
income
Dividend from
associates received
in the current period
(3) Aggregated financial information of insignificant joint ventures and associates
Unit: RMB Yuan
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Items Closing balance/ Opening balance/
Current period cumulative Preceding period comparative
Joint ventures: -- --
Proportionate shares in the following items -- --
Associates: -- --
Total carrying amount of investments 39,246,105.65 38,556,233.03
Proportionate shares in the following items
-- Net profit -911,994.44 -656,507.53
-- Total comprehensive income -911,994.44 -656,507.53
X. Risks related to financial instruments
In risk management, the Company aims to seek the appropriate balance between the risks and benefits from its use of financial
instruments and to mitigate the adverse effects that the risks of financial instruments have on the Company’s financial performance, so
as to maximize the profits of shareholders and other equity investors. Based on such risk management objectives, the Company’s risk
management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls,
and to monitor risks and adherence to limits on a timely and reliable basis.
The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit risk, liquidity
risk, and market risk. The Management has deliberated and approved policies concerning such risks, and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date, the Company assesses whether the credit risk on a financial instrument has increased significantly since
initial recognition. When assessing whether the credit risk has increased significantly since initial recognition, the Company takes into
account reasonable and supportable information, which is available without undue cost or effort, including qualitative and quantitative
analysis based on historical data, external credit risk rating, and forward-looking information. The Company determines the changes
in default risk of financial instruments during the estimated lifetime through comparison of the default risk at the balance sheet date
and the initial recognition date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly when one or more of the following
qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, at the balance sheet date, the probability of default in the remaining
lifetime has risen by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial position, present or expected
changes in technology, market, economy or legal environment that will have significant adverse impact on the debtor’s repayment
ability.
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred, of which the standard is consistent
with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having granted to the
debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default, loss rate of default, and exposure to
default risk. The Company develops a model of the probability of default, loss rate of default, and exposure to default risk on the basis
of quantitative analysis of historical data (e.g. counterparty rating, guarantee measures and collateral type, payment method, etc.) and
forward-looking information.
3. Please refer to item VII 3,4 and 7 of this section for details on the reconciliation table of opening balance and closing balance of
provision for losses of financial instrument.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks, the
Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with relatively high credit levels,
hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. The Company selects credible
and well-reputed customers based on credit assessment result, and conducts ongoing monitoring on balance of receivables, to avoid
significant risks in bad debts.
As the Company only conducts business with credible and well-reputed third parties, collateral is not required from customers. The
Company manages credit risk aggregated by customers. As of December 31, 2021, the Company has certain concentration of credit
risk, and 39.06 % (December 31, 2020: 35.19%) of the total accounts receivable was due from the five largest customers of the
Company. The Company held no collateral or other credit enhancement on balance of receivables.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at the balance sheet.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated with cash or other
financial assets settlement, which is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure
in collecting liabilities from counterparties of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company comprehensively utilized financing tools such as notes settlement, bank borrowings, etc.
and adopts long-term and short-term financing methods to optimize financing structures, and finally maintains a balance between
financing sustainability and flexibility. The Company has obtained credit limit from several commercial banks to meet working capital
requirements and expenditures.
Financial liabilities classified based on remaining time period till maturity
Unit: RMB Yuan
Closing balance
Items
Carrying amount Contract amount not Within 1 year 1-3 years Over 3 years
yet discounted
Bank borrowings 10,902,124,084.08 11,433,900,252.24 6,133,118,558 .23 4,524,209,268.74 776,572,425.27
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Closing balance
Items
Carrying amount Contract amount not Within 1 year 1-3 years Over 3 years
yet discounted
Notes payable 930,489,306.12 930,489,306.12 930,489,306.12
Accounts payable 1,768,457,348.99 1,768,457,348.99 1,768,457,348.99
Other payables 133,386,496.99 133,386,496.99 133,386,496.99
Lease liabilities 3,037,567.36 4,502,023.99 421,166.83 476,190.46 3,604,666.70
Subtotal 13,737,494,803.54 14,270,735,428.33 8,965,872,877.16 4,524,685,459.20 780,177,091.97
(Continued)
Unit: RMB Yuan
Opening balance
Items
Carrying amount Contract amount not Within 1 year 1-3 years Over 3 years
yet discounted
Bank borrowings 8,581,398,746.38 9,052,182,029.59 3,703,590,391.97 4,728,643,204.24 619,948,433.38
Notes payable 694,124,946.73 694,124,946.73 694,124,946.73
Accounts payable 1,435,966,427.76 1,435,966,427.76 1,435,966,427.76
Other payables 56,712,103.36 56,712,103.36 56,712,103.36
Lease liabilities 3,182,245.62 4,721,702.39 402,749.99 476,190.48 3,842,761.92
Subtotal 10,771,384,469.85 11,243,707,209.83 5,890,796,619.81 4,729,119,394.72 623,791,195.30
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial instruments due to
changes in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial instruments due to
changes in market interest. The Company’s fair value interest risks arise from fixed-rate financial instruments, while the cash flow
interest risks arise from floating-rate financial instruments. The Company determines the proportion of fixed-rate financial instruments
and floating-rate financial instruments based on the market environment, and maintains a proper financial instruments portfolio through
regular review and monitoring. The Company’s interest risk in cash flows relates mainly to bank borrowings with floating interest rate.
As of June 30, 2022, balance of borrowings with interest accrued at floating interest rate totaled 10,902,124,084.08 yuan (December
31, 2021: 8,581,398,746.38 yuan). If interest rates had been 50 basis points higher/lower and all other variables were held constant, the
Company’s profit before tax and equity will not be significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument resulted from changes
in exchange rate. The Company’s foreign currency risk relates mainly to foreign currency monetary assets and liabilities. When short-
term imbalance occurred to foreign currency assets and liabilities, the Company may trade foreign currency at market exchange rate
when necessary, in order to maintain the net risk exposure within an acceptable level.
Please refer to item VII 58 of the notes to the financial statements for details on foreign currency financial assets and liabilities at the
end of the period.
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XI. Fair value disclosure
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: RMB Yuan
Fair value as at the balance sheet date
Items
Level 1 fair value Level 2 fair value Level 3 fair value Total
measurement measurement measurement
I. Recurring fair value measurement -- -- -- --
1. Held-for-trading financial assets and other
9,555,464.77 660,000,000.00 669,555,464.77
non-current financial assets
Financial assets classified as at fair value
9,555,464.77 660,000,000.00 669,555,464.77
through profit or loss
Financial products with guaranteed principal
660,000,000.00 660,000,000.00
and floating income
Derivative financial assets 9,555,464.77 9,555,464.77
2. Receivables financing 198,084,359.06 198,084,359.06
3. Other equity instrument investments 22,998,147.55 22,998,147.55
Total liabilities at recurring fair value
9,555,464.77 881,082,506.61 890,637,971.38
measurement
2. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 2 fair value at recurring and
non-recurring fair measurement
Fair value was determined at forward exchange rate published by 中国银行股份有限公司 (Bank of China Limited*) at the balance
sheet date.
3. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3 fair value at recurring and
non-recurring fair measurement
1. Fair value of short-term financial products with guaranteed principal and floating income and structured deposits was determined
based on their par value.
2. Fair value of bank acceptance was determined based on its par value.
3. As there is no significant change in the operating environment, operating condition and financial position of the invested entities
Zhejiang Second Pharma Co., Ltd. and Shanghai NewMargin Yongjin Eqiuty Enterprise (LP), the Company took investment cost as
the reasonable estimation of fair value.
XII. Related parties and related party transactions
1. Parent company
Voting right
Parent company Place of registration Business nature Registered capital Holding proportion
proportion over the
over the Company
Company
NHU Holding Group Xinchang, Zhejiang Manufacturing 120.00 million 48.74% 48.74%
Co., Ltd.
Remarks on the parent company
The Company’s ultimate controlling party is the natural person Hu Baifan.
2. Subsidiaries of the Company
Please refer to item IX 1 of the notes to the financial statements for details on the Company’s subsidiaries.
* The English name is for identification purpose only.
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
3. Joint ventures and associates of the Company
Please refer to item IX 2 of the notes to the financial statements for details on the Company’s significant joint ventures and
associates.
4. Other related parties of the Company
Related parties Relationships with the Company
北京福元医药股份有限公司 (Beijing Winsunny Pharmaceutical Controlled by NHU Holding Group Co., Ltd.
Co., Ltd.*)
浙江爱生药业有限公司 (Zhejiang Asen Pharmaceutical Co., Controlled by NHU Holding Group Co., Ltd.
Ltd.*)
新昌县禾春绿化有限公司 (Xinchang County Hechun Greening Controlled by NHU Holding Group Co., Ltd.
Co., Ltd.*)
Zhejiang Deli Equipment Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
福元药业有限公司 (Front Pharmaceutical PLC.*) Controlled by NHU Holding Group Co., Ltd.
Xinchang County NHU Real Estate Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
绥化和成置业有限公司 (Suihua NHU Real Estate Co., Ltd.*) Controlled by NHU Holding Group Co., Ltd.
潍坊和成置业有限公司 (Weifang NHU Real Estate Co., Ltd.*) Controlled by NHU Holding Group Co., Ltd.
琼海和悦物业服务有限公司 (Qionghai Heyue Property Controlled by NHU Holding Group Co., Ltd.
Services Co., Ltd.*)
琼海博鳌和悦酒店管理有限公司 (Qionghai Boao Holliyard Controlled by NHU Holding Group Co., Ltd.
Hotel Management Co., Ltd.*)
绍兴和悦物业服务有限公司 (Shaoxing Heyue Property Controlled by NHU Holding Group Co., Ltd.
Services Co., Ltd.*)
绍兴上虞和成置业有限公司 (Shaoxing Shangyu NHU Real Controlled by NHU Holding Group Co., Ltd.
Estate Co., Ltd.*)
Zhejiang Jingshi Real Estate Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
Shaoxing Yuexiu Education Development Co., Ltd. Controlled by NHU Holding Group Co., Ltd.
浙江越秀外国语学院 (Zhejiang Yuexiu University of Foreign Controlled by NHU Holding Group Co., Ltd.
Languages*)
绍兴福膜新材料有限公司 (Shaoxing Formost Material Co., Its shareholder is the actual controller of the Company
Ltd.*)
黑龙江昊天玉米开发有限公司 (Heilongjiang Haotian Corn Non-controlling shareholders of subsidiaries
Development Co., Ltd.*)
Other remarks
As Client C holds 25% equity of NHU Europe GmbH, the holding subsidiary of the Company’s subsidiary NHU (Hong Kong) Trading
Co., Ltd., the Company discloses transactions between Client C and NHU Europe GmbH as well as balances in related party
transactions for the sake of prudence.
5. Related party transactions
(1) Purchase and sale of goods, rendering and receiving of services
Purchase of goods and receiving of services
Unit: RMB Yuan
Related parties Content of transaction Current period Transaction limit Whether exceeds Preceding period
cumulative approved transaction limit comparative
Zhejiang Deli Equipment Purchase of goods 55,826,474.37 160,000,000.00 No 22,406,681.48
Co., Ltd.
Zhejiang Chunhui Purchase of steam 60,245,778.74 43,692,487.59
Environmental Protection Waste disposal
Energy Co., Ltd. 984,963.43 68,688.20
service fees
Zhejiang Saiya Chemical Purchase of goods No 100,257,926.52
153,465,976.22 230,000,000.00
Materials Co., Ltd.
Xinchang County NHU Real Catering and
326,991.94 5,108,700.00 No 465,980.79
Estate Co., Ltd. accommodation
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Related parties Content of transaction Current period Transaction limit Whether exceeds Preceding period
cumulative approved transaction limit comparative
services
Shaoxing Heyue Property Property management 11,733.62 187,934.15
Services Co., Ltd.
Xinchang County Hechun Purchase of goods 12,472.77 3,981,660.62
Greening Co., Ltd.
Zhejiang Asen Purchase of goods 743,954.80 1,255,535.33
Pharmaceutical Co., Ltd.
Catering and
Qionghai Boao Holliyard
accommodation 61,979.00 64,855.00
Hotel Management Co., Ltd.
services
Qionghai Heyue Property
Property management 470,190.62 375,616.74
Services Co., Ltd.
Shandong Bin’an Training 23,177.36 185,789.16
Technology Co., Ltd.
Heilongjiang Haotian Corn Purchase of goods
520,003.54
Development Co., Ltd.
Subtotal 272,693,696.41 395,108,700.00 172,943,155.58
Sale of goods and rendering of services
Unit: RMB Yuan
Related parties Content of transaction Current period cumulative Preceding period comparative
Zhejiang Chunhui Environmental
Sale of goods 17,256.64
Protection Energy Co., Ltd.
Zhejiang Asen Pharmaceutical Pharmaceutical intermediates,
310,840.71 297,917.51
Co., Ltd. test fees
Pharmaceutical intermediates,
Beijing Winsunny Pharmaceutical
17,699.12 141,509.43
Co., Ltd. test fees
New materials 81,288,692.23 40,144,943.15
DSM NHU Engineering Materials
Hazardous waste disposal fees 816,229.00 525,305.20
(Zhejiang) Co., Ltd.
Labor costs, etc. 0.00 28,245.28
Shandong Bin’an Vocational Waste materials 21,584.50
Training School Co., Ltd.
Heilongjiang Haotian Corn Purchase of goods 82,192.66
Development Co., Ltd.
Total 82,554,494.86 41,137,920.57
(2) Related party leases
The Company as the lessor:
Unit: RMB Yuan
Lessees Types of assets leased Lease income recognized in the Lease income recognized in
current period preceding period
Zhejiang Deli Equipment Co.,
Land use right and buildings 20,183.49
Ltd.
Qionghai Boao Holliyard Hotel
Land use right and buildings 258,177.14
Management Co., Ltd.
DSM NHU Engineering
Land use right and buildings 356,400.00 190,139.67
Materials (Zhejiang) Co., Ltd.
Weifang NHU Real Estate Co.,
Land use right and buildings 13,714.29
Ltd.
NHU Holding Group Co., Ltd. Land use right and buildings 16,513.76
The Company as the lessee:
Unit: RMB Yuan
Lessors Types of assets leased Lease expenses recognized in Lease expenses recognized in
the current period preceding period
NHU Holding Group Co., Ltd. Land use right and buildings 847,107.96 905,906.40
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
(3) Related party guarantees
The Company as guaranteed parties
Unit: RMB Yuan
Guarantors Amount guaranteed Commencement date Maturity date Whether the guarantee is
mature
500,000,000.00 01/23/2019 12/21/2023 No
200,000,000.00 07/31/2020 07/18/2022 No
300,000,000.00 11/17/2020 11/16/2022 No
NHU Holding Group Co., Ltd.
500,000,000.00 12/03/2020 09/21/2025 No
200,000,000.00 01/20/2021 01/19/2023 No
100,000,000.00 04/14/2021 04/12/2023 No
Subtotal 1,800,000,000.00
(4) Key management’s emoluments
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Key management’s emoluments 5,698,512.85 5,177,598.00
(5) Other related party transactions
(1) Owners of 博鳌度假中心公寓 (Boao Resort Center Apartment*) entrusted serviced apartments to Qionghai Boao Holliyard Hotel
Management Co., Ltd. for operation and management.
(2) In the current period, NHU EUROPE GmbH sold products amounting to RMB26,564,889.94 to Client C. At the end of the period,
balance of accounts receivable amounted to RMB8,806,935.56.
6. Balance due to or from related parties
(1) Balance due from related parties
Unit: RMB Yuan
Closing balance Opening balance
Related parties
Book balance Provision for bad Book balance Provision for bad
debts debts
Items
DSM NHU
Engineering
48,754,092.34 2,437,704.62 26,166,564.42 1,308,328.22
Materials (Zhejiang)
Co., Ltd.
Subtotal 48,754,092.34 2,437,704.62 26,166,564.42 1,308,328.22
Zhejiang Chunhui
Environmental
20,000.00 1,000.00 20,000.00 1,000.00
Protection Energy
Other receivables Co., Ltd.
DSM NHU
Engineering
23,640.47 1,182.02 18,862.50 943.13
Materials (Zhejiang)
Co., Ltd.
Subtotal 43,640.47 2,182.02 38,862.50 1,943.13
Other non-current
Zhejiang Deli
70,708,195.30 45,362,374.00
assets Equipment Co., Ltd.
Subtotal 70,708,195.30 45,362,374.00
(2) Balance due to related parties
Unit: RMB Yuan
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Items Related parties Closing book balance Opening book balance
Zhejiang Deli Equipment Co., Ltd. 13,923,863.54 29,272,703.74
Zhejiang Chunhui Environmental
11,471,654.70 5,185,881.68
Protection Energy Co., Ltd.
Accounts payable Zhejiang Saiya Chemical Materials Co.,
68,070,538.72 2,640,661.94
Ltd.
Zhejiang Second Pharma Co., Ltd. 6,408.00 6,408.00
Qionghai Heyue Property Services Co.,
300,000.00
Ltd.
Subtotal 93,472,464.96 37,405,655.36
Contract liabilities Zhejiang Deli Equipment Co., Ltd. 13,009.64 13,009.64
Subtotal 13,009.64 13,009.64
Zhejiang Deli Equipment Co., Ltd. 163,500.00 443,500.00
Other payables
Xinchang County Hechun Greening
12,472.77 13,102.77
Co., Ltd.
Subtotal 175,972 .77 456,602.77
Other current liabilities Zhejiang Deli Equipment Co., Ltd. 1,691.25 1,691.25
Subtotal 1,691.25 1,691.25
XIII. Commitments and contingencies
1. Significant commitments
Significant commitments as at the balance sheet date
(I) Significant commitments
1. Forward exchange settlement contracts
Pursuant to the “ISDA 2002 MASTER AGREEMENT” entered into between the Company and Bank of China (Hong Kong) Limited,
the “ISDA 2002 MASTER AGREEMENT” entered into between the Company and DBS Bank (China) Limited, the "Global Capital
Market Transactions" and related transaction application forms entered into between the Company and HSBC Bank (China) Limited
Hangzhou Branch, the “NAFMII Master Agreement” and Supplementary agreement (No.Y161136) entered into between the Company
and Bank of China Limited Zhejiang Sub-branch*), as of June 30, 2022, details of the Company’s unsettled forward exchange
settlement contracts are as follows:
Currencies USD nominal amount EUR nominal amount Agreed exchange rate Settlement date
10,000,000.00 6.5205 07/20/2022
10,000,000.00 6.5506 07/11/2022
2,000,000.00 6.6791 12/28/2022
10,000,000.00 6.6075 07/26/2022
2,000,000.00 6.6810 12/18/2022
2,000,000.00 6.6850 12/18/2022
3,000,000.00 6.6202 07/18/2022
USD/EUR 3,000,000.00 6.6174 07/07/2022
3,000,000.00 6.6153 07/18/2022
3,000,000.00 6.6802 12/20/2022
3,000,000.00 6.6776 12/05/2022
3,000,000.00 6.6780 12/15/2022
5,000,000.00 6.6845 12/12/2022
3,000,000.00 6.7220 09/15/2022
3,000,000.00 6.7210 09/15/2022
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Currencies USD nominal amount EUR nominal amount Agreed exchange rate Settlement date
2,000,000.00 6.7200 09/15/2022
2,000,000.00 6.7250 09/15/2022
5,000,000.00 6.7280 10/17/2022
2,000,000.00 6.7385 11/15/2022
1,000,000.00 6.7705 11/15/2022
2,000,000.00 6.7300 10/17/2022
1,000,000.00 6.7605 11/15/2022
500,000.00 6.7770 08/15/2022
2,000,000.00 6.7835 11/15/2022
2,000,000.00 6.7870 11/15/2022
1,000,000.00 6.7950 11/15/2022
1,000,000.00 6.7955 11/15/2022
1,000,000.00 6.7905 11/15/2022
1,000,000.00 6.7970 11/15/2022
1,000,000.00 6.7920 10/17/2022
1,000,000.00 6.7950 10/17/2022
1,000,000.00 6.7940 10/17/2022
1,000,000.00 6.7980 10/17/2022
2,000,000.00 6.7763 10/25/2022
3,000,000.00 6.7815 10/25/2022
1,000,000.00 6.7900 10/25/2022
1,000,000.00 6.7935 10/11/2022
1,000,000.00 6.8015 10/11/2022
1,000,000.00 6.8090 10/11/2022
2,000,000.00 6.8150 10/17/2022
2,000,000.00 6.8200 10/17/2022
1,000,000.00 6.8210 11/08/2022
1,000,000.00 6.8270 11/08/2022
1,000,000.00 6.8280 11/08/2022
1,000,000.00 6.8290 11/08/2022
1,000,000.00 6.8300 11/08/2022
1,000,000.00 6.8350 09/09/2022
1,000,000.00 6.8380 12/12/2022
5,000,000.00 6.7780 10/25/2022
1,000,000.00 6.7870 10/25/2022
1,000,000.00 6.7960 10/25/2022
1,000,000.00 6.8020 10/11/2022
1,000,000.00 6.8140 10/11/2022
1,000,000.00 6.8145 10/11/2022
1,000,000.00 6.8170 11/08/2022
1,000,000.00 6.8200 11/08/2022
1,000,000.00 6.8220 11/25/2022
1,000,000.00 6.8260 11/08/2022
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Currencies USD nominal amount EUR nominal amount Agreed exchange rate Settlement date
2,000,000.00 6.8270 11/25/2022
2,000,000.00 6.8285 11/25/2022
1,000,000.00 6.8360 11/28/2022
2,000,000.00 6.7909 10/25/2022
1,000,000.00 6.7979 11/25/2022
1,000,000.00 6.8213 11/08/2022
1,000,000.00 6.8250 11/08/2022
1,000,000.00 6.8234 11/25/2022
2,000,000.00 6.8302 11/25/2022
1,000,000.00 6.8381 11/21/2022
1,000,000.00 6.8388 11/18/2022
1,000,000.00 6.8500 09/09/2022
1,000,000.00 6.8450 09/09/2022
3,000,000.00 6.701974 07/08/2022
5,000,000.00 7.0910 07/21/2022
10,000,000.00 7.0830 07/21/2022
5,000,000.00 7.1037 08/22/2022
5,000,000.00 7.1025 08/22/2022
1,000,000.00 7.2130 09/20/2022
1,000,000.00 7.2170 09/20/2022
1,000,000.00 7.2280 09/20/2022
1,000,000.00 7.2240 09/20/2022
1,000,000.00 7.2135 09/20/2022
1,000,000.00 7.1960 09/20/2022
1,000,000.00 7.2050 09/20/2022
Subtotal 146,500,000.00 32,000,000.00
2. Letters of guarantee issued but undue
As of June 30, 2022, the undue letters of guarantee issued by the Company and its subsidiaries are as follows:
Issuing banks Applicants Type of L/G Amount Conditions for issuing
中国银行股份有限公司新昌 Performance guarantee USD53,630.00 Occupying credit line
支行 (Bank of China Limited The Company
Performance guarantee USD145,390.00 Occupying credit line
Xinchang Sub-branch*)
汇丰银行（中国）有限公司 Financing guarantee EUR 10,000,000.00 Occupying credit line
杭州分行 (HSBC Bank The Company
(China) Company Limited Financing guarantee EUR 10,000,000.00 Occupying credit line
Hangzhou Branch*)
3. Letters of credit issued but undue
As of June 30, 2022, the undue letters of credit issued by the Company and its subsidiaries are as follows:
Issuing banks Applicants Balance of L/C Conditions
USD19,764.00 Occupying credit line
Bank of China Limited Xinchang The Company
USD21,984.00 Occupying credit line
Sub-branch
USD946,240.40 Occupying credit line
* The English names are for identification purpose only.
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Issuing banks Applicants Balance of L/C Conditions
Bank of China Limited Xinchang Zhejiang NHU Import & EUR 294,000.00 Occupying credit line
Sub-branch Export Co., Ltd.
中国建设银行股份有限公司潍
坊滨海支行 (China Construction Shandong NHU USD1,371.62 Occupying credit line
Bank Corporation Weifang Binhai Pharmaceutical Co., Ltd.
Sub-branch*)
中国银行股份有限公司上虞支
Zhejiang NHU Special
行 (Bank of China Limited USD62,900.00 Deposit of USD 62,900.00
*)
Materials Co., Ltd.
Shangyu Sub-branch
中国银行潍坊滨海支行 (Bank of EUR1,855,000.00 Deposit of 14,942,418.00 yuan
Shandong NHU Amino-acids
China Limited Weifang Binhai
Co., Ltd. EUR857,800.00 Deposit of 12,000,000.00 yuan
Sub-branch*)
4. The “notes pool” business
Pursuant to the “Notes Pool Service Agreement on Yuntong Account of Bank of Communications” entered into between the Company
and 交通银行股份有限公司 (Bank of Communications Co., Ltd.*), the Company pledged and endorsed bank acceptance to the
depositary bank, forming a pledged notes pool; the Company also opened a notes pool deposit account to provide guarantee for the
credit granted under the note pledge and to deposit the pledged bank acceptance for payments. The available credit line for pledge is
the sum of pledged notes and the actual balance of deposit account less pledged notes used. As stipulated in the agreement, the sum of
pledged notes and the balance of deposit account shall not be less than the pledged amount used for issuing notes. Pursuant to the
“Notes Pool Cooperation Agreement” entered into among the Company, its subsidiaries Shangyu NHU Bio-Chem Co., Ltd., Zhejiang
NHU Pharmaceutical Co., Ltd., Zhejiang NHU Special Materials Co., Ltd., 绍兴裕辰新材料有限公司 (Shaoxing Yuchen New
Materials Co., Ltd.*), Shandong NHU Pharmaceutical Co., Ltd., Shandong NHU Vitamins Co., Ltd., Shandong NHU Amino-acids Co.,
Ltd., Heilongjiang NHU Biotechnology Co., Ltd., Shandong NHU Fine Chemical Science and Technology Co., Ltd., 黑龙江新昊热
电有限公司 (Heilongjiang Xinhao Thermal Power Co., Ltd.*), Xinchang NHU Vitamins Co., Ltd., Zhejiang NHU Import & Export
Co., Ltd. and 浙商银行股份有限公司 (China Zheshang Bank Co., Ltd.*), the Company pledged assets pool or notes pool for guarantee,
and opened a notes deposit account to pay deposits at a certain percentage, with no specific agreement on the amount of deposits. As
of June 30, 2022, balance of pledged bank acceptance amounted to 340,164,793.51 yuan, deposits of notes pool in China Zheshang
Bank Co., Ltd. amounted to 108,852,086.25 yuan.
(II) As of the balance sheet date, the Company has no significant contingencies to be disclosed.
XIV. Events after the balance sheet date
1. Others
As of the date of approval for issuing the financial statements, the Company has no other significant events after the balance sheet
date to be disclosed.
XV. Other significant events
1. Segment information
(1) Identification basis and accounting policies for reportable segments
Reportable segments are identified according to the structure of the Company’s internal organization, management requirements and
internal reporting system, and based on business segments. Assets and liabilities shared by different segments are allocated among
segments proportionate to their respective sizes.
(2) Financial information of reportable segments
Unit: RMB Yuan
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Pharmaceutical
Items Others Inter-segment offsetting Total
chemicals
Revenue from main
7,556,409,496.99 672,406,486.70 113,548,067.67 8,115,267,916.02
operations
Cost of main operations 4,343,627,393.24 559,054,882.01 113,548,067.67 4,789,134,207.58
Total assets 35,872,163,095.91 2,777,478,850.41 834,626,102.67 37,815,015,843.65
Total liabilities 15,067,266,244.56 1,394,572,139.87 834,626,102.67 15,627,212,281.76
XVI. Notes to main items of parent company financial statements
1. Accounts receivable
(1) Details on categories
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Categories Carrying Carrying
Provisio Provisio
amount amount
Amount % to total Amount n Amount % to total Amount n
proporti proporti
on on
Including:
Receivables
with
provision 44,687,075. 849,054,429. 785,631,558. 39,281,577. 746,349,9
893,741,505.10 100.00% 5.00% 100.00% 5.00%
made on a 26 84 20 91 80.29
collective
basis
Total 44,687,075. 849,054,429. 785,631,558. 39,281,577. 746,349,9
893,741,505.10 100.00% 5.00% 100.00% 5.00%
26 84 20 91 80.29
Provision made on a collective basis using age analysis method
Unit: RMB Yuan
Closing balance
Items
Book balance Provision for bad debts Provision proportion
Within 1 year 893,741,505.10 44,687,075.26 5.00%
Total 893,741,505.10 44,687,075.26 --
Disclose by aging
Unit: RMB Yuan
Ages Book balance
Within 1 year (inclusive) 893,741,505.10
Total 893,741,505.10
(2) Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Increase/Decrease
Categories Opening balance Closing balance
Accrual Recovery/ Write-off Others
Reversal
Provision made on a
39,281,577.91 5,405,497.35 44,687,075.26
collective basis
Total 39,281,577.91 5,405,497.35 44,687,075.26
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
(3) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the total balance
Debtors Book balance Provision for bad debts
of accounts receivable (%)
Client 1 538,692,340.05 60.27% 26,934,617.00
Client 2 111,921,714.00 12.52% 5,596,085.70
Client 3 52,152,991.57 5.84% 2,607,649.58
Client 4 42,900,000.00 4.80% 2,145,000.00
Client 5 13,178,362.84 1.47% 658,918.14
Total 758,845,408.46 84.90%
2. Other receivables
Unit: RMB Yuan
Items Closing balance Opening balance
Dividend receivable 7,159,278.00
Other receivables 2,672,267,915.31 3,087,880,137.47
Total 2,672,267,915.31 3,095,039,415.47
(1) Dividend receivable
1) Details on categories
Unit: RMB Yuan
Items/Investees Closing balance Opening balance
Zhejiang Chunhui Environmental
7,159,278.00
Protection Energy Co., Ltd.
Total 7,159,278.00
(2) Other receivables
1) Categorized by nature
Unit: RMB Yuan
Nature of receivables Closing book balance Opening book balance
Security deposits 100,232,037.50 100,300,037.50
Export tax refund 9,689,492.75 10,812,822.80
Employee petty cash 3,861,937.00 3,148,937.00
Temporary advance payment receivable 179,078.73 178,933.01
Call loans 2,693,148,060.29 3,131,287,854.18
Others 1,760,095.29 495,303.74
Total 2,808,870,701.56 3,246,223,888.23
2) Provision for bad debts
Unit: RMB Yuan
Phase I Phase II Phase III
Provision for bad debts Total
12month expected Lifetime expected credit Lifetime expected credit
credit losses losses (credit not impaired) losses (credit impaired)
Opening balance 156,762,592.67 131,654.00 1,449,504.09 158,343,750.76
Opening balance in the
current period
--Transferred to phase II -6,750.00 6,750.00
--Transferred to phase III -171,063.16 171,063.16
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Phase I Phase II Phase III
Provision for bad debts Total
12month expected Lifetime expected credit Lifetime expected credit
credit losses losses (credit not impaired) losses (credit impaired)
Provision made in the current
-21,787,455.33 59,659.16 -13,168.34 -21,740,964.51
period
Closing balance 134,968,387.34 27,000.00 1,607,398.91 136,602,786.25
Significant changes in book balance of other receivables with changes in provision for bad debts:
□ Applicable √ Not applicable
Disclose by aging
Unit: RMB Yuan
Ages Book balance
Within 1 year (inclusive) 2,709,057,239.49
1-2 years 135,000.00
2-3 years 855,315.82
Over 3 years 98,823,146.25
3-4 years 144,304.62
4-5 years 2,725.01
Over 5 years 98,676,116.62
Total 2,808,870,701.56
3) Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Increase/Decrease
Categories Opening balance Closing balance
Accrual Recovery/Reversal Write-off Others
Portfolio grouped by ages 158,343,750.76 21,740,964.51 136,602,786.25
Total 158,343,750.76 21,740,964.51 136,602,786.25
4) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the
Nature of Provision for bad
Debtors Book balance Ages total balance of other
receivables debts
receivables (%)
Heilongjiang NHU Call loans Within 1 year
955,149,365.19 34.00% 47,757,468.26
Biotechnology Co., Ltd.
Shandong NHU Vitamins Co., Call loans Within 1 year
466,265,708.33 16.61% 23,313,285.42
Ltd.
Shandong NHU Amino-acids Call loans Within 1 year
360,485,020.74 12.83% 18,024,251.04
Co., Ltd.
Shandong NHU Fine
Chemical Science and Call loans 333,360,011.09 Within 1 year 11.87% 16,668,000.55
Technology Co., Ltd.
Heilongjiang Xinhao Thermal Call loans Within 1 year
230,353,116.66 8.20% 11,517,655.83
Power Co., Ltd.
Total -- 2,345,613,222.01 -- 83.51% 117,280,661.10
3. Long-term equity investments
Unit: RMB Yuan
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Closing balance Opening balance
Items
Book balance Provision for Carrying amount Book balance Provision for Carrying amount
impairment impairment
Investments in
7,896,078,842.12 7,896,078,842.12 7,846,078,842.12 7,846,078,842.12
subsidiaries
Investments in associates
233,894,015.72 233,894,016.95 208,873,174.90 208,873,174.90
and joint ventures
Total 8,129,972,857.84 8,129,972,859.07 8,054,952,017.02 8,054,952,017.02
(1) Investments in subsidiaries
Unit: RMB Yuan
Increase/Decrease Closing
Investees Opening carrying Closing carrying balance of
amount Investments Investments Provision for Others amount provision for
increased decreased impairment impairment
Xinchang NHU
Vitamins Co., 149,407,990.15 149,407,990.15
Ltd.
Zhejiang NHU
Import & Export 13,500,000.00 13,500,000.00
Co., Ltd.
琼海博鳌丽都
置业有限公司
(Qionghai Boao 54,020,492.00 54,020,492.00
Lidu Real Estate
Co., Ltd.*)
Zhejiang
Vityesun
Animal 5,000,000.00 5,000,000.00
Nutrition and
Health Co., Ltd.
Shangyu NHU
Bio-Chem Co., 414,100,091.44 414,100,091.44
Ltd.
NHU (Hong
Kong) Trading 586,000,000.00 586,000,000.00
Co., Ltd.
Zhejiang NHU
Pharmaceutical 16,406,160.00 16,406,160.00
Co., Ltd.
Zhejiang NHU
Special
480,000,000.00 480,000,000.00
Materials Co.,
Ltd.
Shandong NHU
Amino-acids 554,844,108.53 554,844,108.53
Co., Ltd.
Shandong NHU
Holdings Co., 3,900,000,000.00 3,900,000,000.00
Ltd.
Heilongjiang
NHU
200,000,000.00 200,000,000.00
Biotechnology
Co., Ltd.
Shandong NHU
Pharmaceutical 1,300,000,000.00 1,300,000,000.00
Co., Ltd.
Shandong NHU
Fine Chemical
160,000,000.00 160,000,000.00
Science and
Technology Co.,
* The English name is for identification purpose only.
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Increase/Decrease Closing
Investees Opening carrying Closing carrying balance of
amount Investments Investments Provision for Others amount provision for
increased decreased impairment impairment
Ltd.
NHU Singapore
12,800,000.00 12,800,000.00
PTE. LTD.
Zhejiang NHU
Nylon Materials 50,000,000.00 50,000,000.00
Co., Ltd.
Total 7,846,078,842.12 50,000,000.00 7,896,078,842.12
(2) Investments in associates and joint ventures
Unit: RMB Yuan
Increase/Decrease Closing
Investment Adjustme balance of
Opening Investm Invest Provisio Closing
Investees income nt in other Cash dividend/ provision
carrying ents ments Changes in n for carrying
recognized comprehe Profit declared Others for
amount increase decreas other equity impairm amount
under equity nsive for distribution impairmen
d ed ent t
method income
I. Joint ventures
II. Associates
Zhejiang
Chunhui
Environm
208,873,174 19,977,116.5 5,043,725. 233,894,01
ental
Protection .90 3 52 6.95
Energy
Co., Ltd.
Subtotal 208,873,174 19,977,116.5 5,043,725. 233,894,01
.90 3 52 6.95
Total 208,873,174 19,977,116.5 5,043,725. 233,894,01
.90 3 52 6.95
4. Operating revenue/Operating cost
Unit: RMB Yuan
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 1,850,628,697.19 1,460,074,892.61 2,385,252,517.66 1,634,468,165.07
Other operations 31,160,723.40 24,551,797.22 19,819,223.76 15,301,495.85
Total 1,881,789,420.59 1,484,626,689.83 2,405,071,741.42 1,649,769,660.92
Details of revenue
Unit: RMB Yuan
Categories of contracts Total
By product
Including: Nutrition 1,599,599,151.28
Others 251,029,545.91
Subtotal 1,881,789,420.59
By operating region 1,881,789,420.59
Including: Domestic 1,157,593,117.21
Overseas 724,196,303.38
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Subtotal 1,881,789,420.59
By revenue recognition time
Including: Transferred at a point in time 1,881,789,420.59
Subtotal 1,881,789,420.59
By sales model
Including: Direct sales 1,703,984,911.80
Agent sales 177,804,508.79
Subtotal 1,881,789,420.59
Information related to performance obligations:
None.
Information related to transaction price allocated to the remaining performance obligations:
As of June 30, 2022, revenue corresponding to performance obligations for which the Company has entered into contracts but not yet
performed or fulfilled amounted to RMB 717.84 mn, of which, RMB 717.84 mn is expected to be recognized as revenue in 2022.
5. Investment income
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Investment income from long-term equity
19,977,116.53 16,864,292.79
investments under equity method
Investment income from long-term equity
-3,841,064.35
investments under cost method
Investment income from disposal of
-2,653,997.46
financial instruments
Including: Financial assets classified as at
-1,187,066.89
fair value through profit or loss
Financial liabilities classified as at fair
1,289,000,000.00
value through profit or loss
Interest income from call loans 54,876,777.72 74,902,773.84
Investment income from bank financial
15,218,893.77 22,964,570.95
products and structured deposits
Total 90,072,788.02 1,399,890,573.23
XVII. Supplementary information
1. Schedule of non-recurring profit or loss
√ Applicable □ Not applicable
Unit: RMB Yuan
Items Amount Remarks
Gains on disposal of non-current assets 6,674,850.81
Government grants included in profit or loss (excluding those closely
related to operating activities of the Company, satisfying government
85,522,179.54
policies and regulations, and continuously enjoyed with certain quantity
or quota based on certain standards)
Gains on assets consigned to the third party for investment or
28,841,651.61
management
Gains or losses on changes in fair value of held-for-trading financial
assets and held-for-trading financial liabilities, and investment income
from disposal of held-for-trading financial assets and held-for-trading 9,071,898.92
financial liabilities, excluding those arising from hedging business related
to operating activities
Other non-operating revenue or expenditures 797,805.24
Less: Enterprise income tax affected 11,046,849.16
Non-controlling interest affected 40,067.33
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2022 Semi-Annual Report of Zhejiang NHU Company Ltd.
Total 119,821,469.63 --
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□ Applicable √ Not applicable
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.
Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria for
Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss
□ Applicable √ Not applicable
2. ROE and EPS
EPS (yuan/share)
Profit of the reporting period Weighted average ROE (%)
Basic EPS Diluted EPS
Net profit attributable to shareholders of
9.55% 0.72 0.72
ordinary shares
Net profit attributable to shareholders of
ordinary shares after deducting non- 9.03% 0.68 0.68
recurring profit or loss
3. Differences in accounting data under Chinese accounting standards and overseas accounting standards
(1) Difference in net profit and net assets in financial statements disclosed respectively under IFRS Standards and Chinese
accounting standards
□ Applicable √ Not applicable
(2) Difference in net profit and net assets in financial statements disclosed respectively under overseas accounting standards
and Chinese accounting standards
□ Applicable √ Not applicable
134
