2023 Annual Report of Zhejiang Supor Co., Ltd.
Zhejiang Supor Co., Ltd.
2023 Annual Report
March 2024
1
2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND
DEFINITIONS
The Board of Directors and the Board of Supervisors of Zhejiang Supor Co.,
Ltd (hereinafter referred to as the "Company") and all its directors, supervisors
and senior executives warrant that this annual report is true, accurate and
complete, and does not contain any fictitious statements, misleading information
or significant omissions; all directors, supervisors and senior executives of the
Company undertake, separately and jointly, all responsibilities in relation to the
truth, accuracy and completeness hereof.
Mr. Thierry de LA TOUR D'ARTAISE, person in charge of the Company,
and Mr. Xu Bo, person in charge of accounting and person in charge of accounting
department (accountant in charge), hereby confirm that the financial statement
enclosed in this Annual Report is true, accurate and complete.
All directors have attended the Board Meeting in person.
It is of great uncertainty, for whether it can be realized or not depends on
multiple factors, including market change and effort of management team. Please
be careful of investment risks.
As for the risk factors confronted by the Company, see Part 11 "Prospects
for Future Development" of SECTION III "DISCUSSION AND ANALYSIS OF
THE MANAGEMENT" for details.
The profit distribution plan adopted at this Board Meeting specifies that:
based on 796,891,157 shares, the Company distributes cash dividend of RMB
27.30 per 10 shares (tax-inclusive) to all shareholders, and total amount of cash
dividends is RMB 2,175,512,858.61, issues 0 bonus shares (tax-inclusive) and will
not convert capital reserves to capital.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Table of Contents
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND DEFINITIONS ........................................................................... 2
SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICATORS ........................................................................................ 6
SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEMENT........................................................................................10
SECTION IV CORPORATION GOVERNANCE ................................................................................................................................29
SECTION V SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES............................................................................................55
SECTION VI SIGNIFICANT EVENTS ...............................................................................................................................................60
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS .............................................70
SECTION VIII INFORMATION ON PREFERRED SHARE ..............................................................................................................79
SECTION IX BONDS ..........................................................................................................................................................................80
SECTION X FINANCIAL STATEMENT ............................................................................................................................................81
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2023 Annual Report of Zhejiang Supor Co., Ltd.
CATALOG OF REFERENCE DOCUMENTS
I. 2023 Annual Report of the Company and Abstract with signature of legal representative;
II. Financial statements with signature of legal representative, person in charge of accounting and person in charge of accounting
department and seal of the Company;
III. Original of audit report with seal of accounting firm and signature of certified public accountants (CPA);
IV. Original of all documents and announcements published in newspapers designated by CSRC during the reporting period.
Reference documents above archived at the Securities Department of the Company.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Definitions
Items to be Defined means Definitions
SZSE means Shenzhen Stock Exchange
CSRC means China Securities Regulatory Commission
Shenzhen Branch of China Securities Depository and Clearing Corporation
CSDCC means
Limited
The Company/this Company/the Group means Zhejiang Supor Co., Ltd.
SEB Internationale means SEB INTERNATIONALE S.A.S
SEB Group means SEB S.A.
Zhejiang Supor Electrical means Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd.
Shaoxing Supor means Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd.
Supor Vietnam means Supor (Vietnam) Co., Ltd.
Wuhan Recycling means Wuhan Supor Recycling Co., Ltd.
Wuhan Supor Cookware means Wuhan Supor Cookware Co., Ltd.
Wuhan Supor Pressure Cooker means Wuhan Supor Pressure Cooker Co., Ltd.
Omegna means Hangzhou Omegna Commercial Trade Co., Ltd.
Shanghai Marketing means Shanghai Supor Cookware Marketing Co., Ltd.
P&R Products means Zhejiang Supor Plastic & Rubber Co., Ltd.
Yuhuan Sales Company means Yuhuan Supor Cookware Sales Co., Ltd.
SEADA means SOUTH EAST ASIA DOMESTIC APPLIANCES PTE. LTD.
AFS means AFS VIETNAM MANAGEMENT CO.LTD.
Shanghai WMF means Shanghai WMF Enterprise Development Co., Ltd.
Zhejiang WMF means Zhejiang WMF Housewares Co., Ltd.
Shaoxing Supor Housewares means Zhejiang Shaoxing Supor Household Products Co., Ltd.
Zhejiang Supor LKA means Zhejiang Supor Large Kitchen Appliance Co., Ltd.
Supor Water Heater means Zhejiang Supor Water Heater Co., Ltd.
GSIM or Indonesian Company means PT Groupe SEB Indonesia MSD
Hainan Supor E-commerce Company means Hainan Supor E-Commerce Co., Ltd.
Hainan Tefal Trading Company means Hainan Tefal Trading Co., Ltd.
2021 Equity Incentive Plan means 2021 Restricted Stock Incentive Plan (Draft)
2022 Equity Incentive Plan means 2022 Restricted Stock Incentive Plan (Draft)
2023 Equity Incentive Plan means 2023 Stock Option Incentive Plan (Draft)
Performance Incentive Fund means Administration Measures for the Performance Incentive Fund
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2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION II COMPANY FILE AND MAJOR FINANCIAL
INDICATORS
I. Company Information
Short Form of the Stock Supor Stock Code 002032
Short Form of the Original Stock (if
None
any)
Stock Exchange for Stock Listing Shenzhen Stock Exchange
Chinese Name of the Company Zhejiang Supor Co., Ltd.
Short Form of Chinese Name of the
Supor
Company
English Name of the Company (if any) ZHEJIANG SUPOR CO., LTD.
Short Form of English Name of the
SUPOR
Company (if any)
Legal Representative Thierry de LA TOUR D’ARTAISE
Registration Place Damaiyu Economic Development Zone, Yuhuan, Zhejiang
Postal Code 317604
Historical Change Records of the
None
Company's Registered Address
15F of Supor Building, No.1772 Jianghui Road, New & High Tech Development Zone,
Office Address
Hangzhou, China
Postal Code 310051
Website www.supor.com.cn
Email 002032@supor.com
II. Contact Person and Contact Information
Board Secretary Representative of Securities Affairs
Name Ye Jide Fang Lin
Securities Department at 23F of Supor Building, Securities Department at 23F of Supor Building,
Address No.1772 Jianghui Road, New & High Tech No.1772 Jianghui Road, New & High Tech
Development Zone, Hangzhou, China Development Zone, Hangzhou, China
Tel. 0571-86858778 0571-86858778
Fax 0571-86858678 0571-86858678
Email yjd@supor.com flin@supor.com
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2023 Annual Report of Zhejiang Supor Co., Ltd.
III. Place for Information Disclosure and Archiving
Securities exchange websites where the Company discloses the
Securities Times, Securities Daily and China Securities Journal
annual report
Names and websites of medias where the Company discloses the
www.cninfo.com.cn
annual report
Place for archiving of the Company's annual report: Securities Department of the Company
IV. Changes of Registration
Unified social credit code 913300007046976861
Change of main business since listing of the Company (if any) No change during the reporting period
Change of controlling shareholders (if any) No change during the reporting period
V. Other Relevant Information
Certified Public Accountants engaged by the Company
Name of the Certified Public Accountants KPMG Huazhen LLP (Special General Partnership)
8F, East 2 Office Building, Dongfang Square, No.1 East Chang'an
Office Address of the Certified Public Accountants:
Avenue, Dongcheng District, Beijing City
Name of the Signatory Accountants Huang Feng, Jin Yang
Sponsor institution engaged by the Company for performing continuous supervision duties during the reporting period
□ Applicable Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties during the reporting period
□ Applicable Not applicable
VI. Major Accounting Data and Financial Indicators
Does the company need to retroactively adjust or restate previous year's accounting data?
□ Yes No
2023 2022 Increase/decrease 2021
Operating income (RMB) 21,303,948,642.66 20,170,527,516.66 5.62% 21,585,331,407.47
Net profit attributable to shareholders of listed
2,179,798,147.27 2,067,659,526.97 5.42% 1,943,943,608.94
company (RMB)
Net profit attributable to shareholders of listed
company with non-recurring profit or loss 1,994,465,695.85 1,888,197,965.28 5.63% 1,858,036,556.80
deducted (RMB)
Net cash flows from operating activities (RMB) 2,034,909,336.20 3,159,955,245.84 -35.60% 2,049,881,568.69
Basic earnings per share (RMB/share) 2.719 2.565 6.00% 2.400
Diluted earnings per share (RMB/share) 2.719 2.564 6.05% 2.395
Increased by 6.73
Weighted average return on net assets 34.62% 27.89% 26.81%
percentage points
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2023 Annual Report of Zhejiang Supor Co., Ltd.
End of 2023 End of 2022 Increase/decrease End of 2021
Total assets (RMB) 13,106,703,607.00 12,952,655,903.47 1.19% 13,899,456,422.16
Net asset attributable to shareholders of listed
6,345,333,020.11 7,036,084,863.54 -9.82% 7,622,639,752.86
company (RMB)
The Company's net profit before or after non-recurring profit and loss are deducted for the last three fiscal years, whichever is lower,
is negative, and the audit report for the latest year indicates uncertainty about its continuing operation ability
□ Yes No
Net profit before or after non-recurring profit and loss are deducted, whichever is lower, is negative
□ Yes No
VII. Financial Data Difference on Principle of Domestic and Oversea Accounting
1. Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable Not applicable
No net profit and net assets discrepancies in financial statements disclosed separately under International Accounting Standards and
Chinese Accounting Standards existed during the reporting period.
(2) Net profit and net assets discrepancies in financial statements disclosed separately under Overseas
Accounting Standards and Chinese Accounting Standards
□ Applicable Not applicable
No net profit and net assets discrepancies in financial statements disclosed separately under Overseas Accounting Standards and
Chinese Accounting Standards existed during the reporting period.
VIII. Quarter-based Major Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 4,962,675,878.22 5,019,940,562.51 5,384,493,499.25 5,936,838,702.68
Net profit attributable to shareholders of listed
437,905,012.74 442,713,267.04 481,582,219.60 817,597,647.89
company
Net profit attributable to shareholders of listed
company with non-recurring profit or loss 426,372,629.58 431,048,319.57 476,888,535.07 660,156,211.63
deducted
Net cash flows from operating activities 753,030,095.68 -197,989,584.56 606,709,345.76 873,159,479.32
Any difference between financial indicators or the total and relevant financial indicators disclosed in quarter-based report or semiannual
report
□ Yes No
IX. Non-recurring Profit or Loss Items and Amount
Applicable □ Not applicable
Unit: RMB
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Item Amount of 2023 Amount of 2022 Amount of 2021 Notes
Profit and loss on disposal of non-current assets (including
-6,956,266.86 -1,189,107.57 -5,168,056.19
the write-off of asset impairment provision)
Government subsidies recognized through current profits
and losses (except those that are closely related to the
Company's normal business operations, comply with
196,125,471.29 199,599,828.51 181,083,262.46
national policies and regulations and available according to
certain standard quota or continuously affect the Company's
profits and losses)
Except the effective hedging business related to the normal
operation of the Company, profits and losses from fair value
changes caused by the finance assets and financial liabilities 43,047,593.88 24,264,345.88 5,385,851.68
held by non-financial enterprises, and profits and losses
from disposal of financial assets and financial liabilities
Capital occupation fee charged to non-financial enterprises
1,849,173.62
included in current profits and losses
Nonrecurring expenses incurred by the enterprise due to the
discontinuation of related operating activities, such as -527,780.73 -59,398,185.22
expenses for employee placement.
Other non-operating incomes or expenditures except for the
6,289,885.37 9,796,376.97 6,654,792.26
foregoing items
Minus: influenced amount of income tax 52,980,777.54 52,414,885.25 43,945,276.71
Influenced amount of minority shareholders' equities
193,454.72 67,216.12 554,509.76
(after tax)
Total 185,332,451.42 179,461,561.69 85,907,052.14 --
Other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses:
□ Applicable Not applicable
The Company does not have other specific circumstances of other items of profits and losses complying with the definition of non-
recurring profits or losses.
Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of the
Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□ Applicable Not applicable
The Company does not have the description of defining non-recurring profits or losses items listed in the Explanatory Announcement
No.1 on Disclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring
profits and losses.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION III DISCUSSION AND ANALYSIS OF THE
MANAGEMENT
I. Industrial Situation of the Company in the Reporting Period
Since 2023, industries such as transportation, tourism, and catering services are the first to pick up quick recovery. However,
consumer demands in other industries, including cookware and small domestic appliances, are relatively weaker. Thanks to excellent
channel operation and management capabilities and strong product competitiveness, the Company has achieved more satisfactory
performance than the industry average under the background of the current stress on the consumer market as a whole.
In the field of open fire cookware in 2023, the growth rate of online retail slowed down, and the conventional e-commerce was
stressful, with interest-based e-commerce and live streaming e-commerce bringing new vitality to the industry, which further diverted
the purchasing channels of consumers. Supor actively responds to the varied needs of online and offline consumers, adopts
digitalization as an anchoring point, constantly explores new models to match consumer demand, and continuously builds competitive
advantages. According to monitoring data of AVC, the online cookware market share of Supor increased by 24% year-on year in 2023,
leading the second-ranked brand by more than four times. The total share in the offline market has reached approximately 50% in total,
firmly occupying the top position in the industry. From the perspective of product category performance, the categories related to health
concepts are outrunning the others, such as pressure cookers, casseroles, steamers. From the perspective of product materials, cookware
made of healthy materials such as stainless steel 316L and titanium are more favored by consumers.
In the field of small domestic appliances, customer demands tend to be more rational due to macroeconomic impacts. Striving
forward under pressure, Supor has achieved a good result that the comprehensive market share of traditional e-commerce and the
Douyin channel ranks the first. According to the overall monitoring data of AVC in 2023, the sales performance of Supor's small
domestic appliances (including the following categories: coffee machines, electric rice cookers, induction hobs, electric pressure
cookers, soymilk makers, high-speed blenders, mixers, juicers, electric kettles, electric steamers, health kettles, baked machines, small
desktop single function ovens, and air fryers) is outrunning the industry average, and their shares in the online and offline markets have
improved, ranking first and second respectively in the industry. From the perspective of category performance, the rigid-demand
categories such as electric rice cookers have a stable market, and the categories related to health concepts such as electric steamers and
soymilk makers continue with the growth momentum.
II. Main Business during the Reporting Period
As China's famous cookware and small domestic appliance R&D and manufacturing company and leading brand, the Company
is also the first listed company in China's cookware industry. Established in 1994, the headquarters of the Company locates in Hangzhou
and owning six R&D and manufacture bases located in Yuhuan City, Hangzhou City, Shaoxing City (Yuecheng District and Keqiao
District) in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam.
Supor's main businesses include open fire cookware and kitchen utensil, small domestic appliances, large kitchen appliances and
H&PC appliances.
(1) Open fire cookware and kitchen utensils mainly include wok, pressure cooker, frying pan, sauce pan, steamer, ceramic slow
cooker, kettle, knife, spatula, thermal pot, thermos & flask, kitchen gadgets, crisper, etc.;
(2) The small domestic appliances mainly include electric rice cooker, electric pressure cooker, induction hob, soymilk maker,
electric kettle, juicer, slow cooker, electric steamer, electric hotpot, food processor, baked machine, air fryer, coffee machine, etc.;
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2023 Annual Report of Zhejiang Supor Co., Ltd.
(3) The large kitchen appliances mainly include range hood, gas stove, disinfection cabinet, water purifier, embedded steaming
oven, integrated stove, water heater, etc.;
(4) The H&PC appliances mainly include air purifier, garment steamers, vacuum cleaner, floor washer and electric iron, electric
heater, air-circulating fans, etc..
The Company's cookware and electrical products have been exported to more than 50 countries and regions such as Japan,
European and American countries mainly through SEB Group.
III. Core Competitiveness Analysis
(I) Superior product innovation capacity
Supor has been upholding the philosophy of "People Orientation, Design Driven Product Innovation" over the years, with the
adherence on technological leading, green design development, internal and external innovation synergy, and enhancement on
international cooperation. In 2023, Supor Domestic Appliance Design Center was honorably accredited as a "National Industrial Design
Center". Under the leadership of the innovation center of the headquarters, the Company further strengthens the collaboration of internal
and external R&D resources. Internally, the innovation center continuously improves its innovation incentive mechanism and
encourages the continuous innovation in various internal business units. Externally, the Company continuously introduces new
processes and materials through close cooperation with research institutions, universities, and other organizations, and strengthens
innovation collaboration with SEB Group to a greater extent to introduce more new products and technologies.
In terms of the design modules for unfinished products, the Company integrates industrial design, user experience, and
consumption trend into product innovation to further enhance the visual aesthetic feeling, form, and experience of products, address
user pain points, and bring consumers a better product experience.
(II) Steady distribution network
Supor has a reliable distribution team and maintains long-term and sound cooperative relationships with distributors and operators.
In terms of online channels, the Company continuously promotes the direct sales, agency and “one-basket” model, and works together
with distributors and operators to build a complete matrix of e-commerce stores, providing differentiated product portfolios for different
consumer groups. In terms of offline channels, the Company has established a great number of point-of-sale terminals and service
outlets, and has entered large-scale mainstream supermarkets and stores in the primary and secondary markets, in addition to a high
coverage rate in the O2O channels in the third and fourth markets, ensuring that consumers can purchase the Company's products more
conveniently.
(III) Strong R&D and manufacturing capabilities
Supor has built up six R&D production bases, respectively in Yuhuan City, Hangzhou City, Shaoxing City (Yuecheng and Keqiao)
in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam. In particular, the annual production scale of
Wuhan Base and Shaoxing Base ranked the top in the industry. Over the years, the Company has been continuously improving industrial
efficiency, and the strong R&D and manufacturing capabilities in the base and the superior R&D team of the Company have robustly
supported the product competitiveness of Supor.
(IV) Synergistic effect of integration with SEB
Since 2006, the Company has started to establish strategic cooperation relationship with SEB Group which owns a long history
of more than 160 years with leading market shares of cookware and small domestic appliances worldwide. The powerful cooperation
between Supor and SEB Group has brought stable export orders to the Company, and increased its overall business size and
manufacturing capacity. Meanwhile, the Company strengthens cooperation with SEB Group in varied fields such as production, R&D,
IT, and management, and providing comprehensive support for the Company's development continuously .
(V) Advantage of multiple brands and categories
In terms of the multi-brand operation, in addition to Supor brand, the Company also introduced a lot of high-end brands under
SEB Group, such as WMF, LAGOSTINA, KRUPS, and TEFAL so as to fully cover the high-end brands in small domestic appliances
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2023 Annual Report of Zhejiang Supor Co., Ltd.
and kitchen cookware fields. In terms of the category expansion, the Company actively explores new product categories for kitchen
appliances, H&PC appliances, personal care appliances, and others on the basis of the existing advantageous categories such as open
fire cookware and small domestic appliances. Supor has established a strong competitive advantage with the multi-band and multi-
category layout in the domestic market.
IV. Main business analysis
During the reporting period, the Company achieved an operating income of RMB 21,303,948,642.66, a year-on-year increase of
5.62%, mainly because the domestic sales kept positive growth with market shares of core categories on both online and offline
channels gained during reporting period compared with that last year among such challenging market environment. For export business,
it has improved obviously since 2023Q3 and the export sales achieved fast growth during reporting period compared with that last year.
The net profit attributable to shareholders of listed company was RMB 2,179,798,147.27, a year-on-year increase of 5.42%; and the
earnings per share were RMB 2.719, a year-on-year increase of 6.00%. Among them, the realized revenue from the main business of
cookware was RMB 6,056,346,176.44, a year-on-year decrease of 1.07%; the realized revenue from the main business of electric
appliances was RMB 14,963,200,632.70, a year-on-year increase of 8.40%; the realized revenue from the main business of domestic
sales was RMB 14,937,286,741.50, a year-on-year increase of 0.95%; and the realized revenue from the main business of export
business was RMB 6,110,174,972.63, a year-on-year increase of 18.63%.
1. Overview
(I) Domestic sales during the reporting period
(1) Product strategy
During the reporting period, Supor continued the "consumer-centric" strategy guiding its innovation and development of new
products, and deeply explored the needs of segmented users under different scenarios by means of internet data, so as to constant
provide smart and ingenious product solutions that meet diversified consumer needs and offer intimate, comprehensive consumer
experiences.
In the business of open fire cookware, Supor actively responds to the needs of online and offline target consumer groups through
continuous product innovation and iteration, with a focus on making breakthroughs in the key categories. In 2023, the Company has
upgraded the titanium uncoated non-stick wok product, which continues to dictate the "Uncoated and Non-stick" upsurge in the
cookware industry. Meanwhile, the Company targeted young generation and small-sized families and launched a hit product, the
lightweight thermal-spot nonstick wok, through Red Book influencer recommendations, short video streaming, and in-site&out-site
promoting to accurately reach the target groups, and to gain incremental market shares, and this product achieved a sale of nearly one
million pieces in 2023. In terms of drinkware, the Company has continued to promote the strategy of major flagship product, the big
capacity thermos bottle launched in the year sold nearly one million units, and ranked as the No. 1 on the hot-selling list for several
consecutive months. At the same time, the Company has successfully launched a series of products such as stainless steel thermos jugs
and thermos pots based on profound insights into customer needs, driving the market share of thermos jugs and thermos pots to continue
to take the lead.
In the business of small domestic appliances, Supor adheres to the differentiated product innovation strategy at all times, and
continuously rolls out innovative and intelligent products which provide creative functions for healthy and nutritious cooking. On the
one hand, the Company's leading position in core rigid-demand categories such as electric rice cookers, electric pressure cookers, and
electric kettles has been further strengthened, and the core product of far-infrared rice cooker has been sold over a million pieces
accumulatively since its launch. On the other hand, the Company is accelerating the layout of small capacity, multifunctional, and
outdoor product lines, actively exploring the market of new sub-categories. The intelligent automatic cooker product and portable
coffee maker product launched by the Company have achieved good sales results, and were respectively awarded as the "No. 1 Sales
for the Category of Automatic Cookers on June 18", "Tmall's No. 1 Sales for the Category of Portable Semi-automatic Coffee Makers
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2023 Annual Report of Zhejiang Supor Co., Ltd.
on June 18", and "Douyin's No. 1 Sales for the Category of Portable Coffee Makers on November 11" respectively, with an upsurging
year-on-year increase.
In the business of H&PC appliances, Supor persistently promotes the development of the home appliance category and continues
to strengthen the cleaning category, with the market share of vacuum cleaners improved to the first place among all domestic brands
and to the second place in the industry. In terms of the garment steamer category, Supor continues to keep the leading position in the
industry. According to the monitoring data of AVC, the online market share of Supor's clothes steamer category ranks second in the
industry. Meanwhile, the Company actively develops emerging seasonal product categories such as the electric heaters and air-
circulating fans, with a total scale of annual sales exceeding RMB 100 million, which is incubating to become a new engine of sales
growth.
In the business of kitchen appliances, Supor insists on focusing on its main operating categories, rapidly develops and cultivates
distinct categories, solidifies the foothold in the existing replacement market, and constantly seeks breakthroughs. The "Extreme Fire"
gas stove category launched by the Company continues to lead the industry. According to the monitoring data of AVC, the online
market share of Supor's gas stove category remains the first in the industry, and the overall online market share of Super remains in the
top five in the industry in 2023.
(2) Channel strategy
With the accelerated integration of online and offline markets, Supor remained "consumer-centric" and kept optimizing its layout
of channels based on the changes in consumers' purchase path, thereby meeting the needs of various consumers through a multi-channel
and multi-mode layout. The Company insisted on winning consumers' trust with high-quality products, and winning distributors' and
retailers' support with excellent services.
In 2023, the overall growth rate of online retail has slowed down, and the conventional e-commerce is under pressure. With the
significantly increased cost of customer acquisition, the price war between platforms has become increasingly fierce, and consumer
purchasing channels have been further diverted. Under such background, by actively grasping the varied shopping needs of consumers
and through excellent business capabilities in all fields, Supor has maintained a relatively robust trend as a leading brand in the industry,
with the market shares of various categories on various platforms have reached new highs. In terms of conventional e-commerce, the
Company continuously expands the sales proportion of mid- to high-end products through the portfolio optimization of product matrix
and store matrix, which has further enhanced the market share of mid to high price products. In terms of interest-based e-commerce,
the Company has successfully incubated differentiated products such as intelligent automatic cookers, portable coffee makers and
foldable electric kettles on Douyin through the combination of shop livestreaming and influencer promotion. The Company has
launched specialized models on Pinduoduo to continuously optimize the sales structure on the platform, reasonably control the
proportion of high cost-effective single products, and continuously strengthen store operation capabilities with a focus on flagship
stores.
In 2023, the landscape and competitive environment of offline retail continues to change, and there is not a significant recovery
in customer flow at the retail terminals of cookware and small domestic appliances. As an industry leader, Supor has always adhered
to winning the trust of consumers with excellent product quality, and has gained support from distributors and retailers with strong new
product expansion capabilities and excellent services. In the offline market, the Company has newly established the promotion project
of "Retail Expansion", and actively launched the "Trade in", brand alliance, cross industry linkage, and other local promotion activities
in old communities, quasi-new communities, and building materials markets in an environment of fragmented and pre-positioned retail
channels, which helps to keep offline sales relatively stable.
In terms of lower-tier markets, the Company continues to improve refined operations with the continued growth of the O2O
business. In addition, the instant retail develops rapidly, and the Company's cooperation with platforms such as Meituan Flash Sale and
JD.com Home has been further upgraded, which injects new vitality into the offline store ecosystem, further narrows the gap between
products and consumers, and achieves the integration of consumption scenes with household scenes. In terms of B2B business, the
Company has established the credit redemption business with large-scale banks, airline operators, and other large- and medium-sized
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2023 Annual Report of Zhejiang Supor Co., Ltd.
enterprises, further expanding the sales channels. Meanwhile, Supor continues to strengthen the cooperation with regional property
developers and decoration companies, expanding the engineering-based kitchen appliance business.
(3) Brand building
In 2023, the Company has expedited the process of brand rejuvenation from multiple dimensions such as consumer insight, product
layout, industrial design, and marketing method, and the proportion of young people in the brand user asset has significantly improved.
In terms of consumer insight, the Company deeply explores the needs of young people through the implementation of qualitative and
quantitative researches and big data analysis, and has set indicators to continuously track the brand rejuvenation performance. In terms
of industrial design, through the trials of different design styles of rejuvenation and the enrichment of color combinations, the Company
has launched a series of "attractive-appearance" products such as the lightweight thermo-spot non-stick wok and the instant cooking
pots. In terms of marketing, the Company continuously makes breakthroughs in the interest position and aesthetic culture of young
people through the operation of "Audience + Content", which induces emotional resonance and delivers emotional value.
The Company has also conducted a comprehensive upgrade to the e-commerce detail pages, e-commerce packaging, and offline
terminals, which optimizes the online and offline shopping experiences, strengthens the communication between the brand and
consumers, and enhances the brand competitiveness. Meanwhile, the Company also strengthens the private traffic operation and has
launched the official WeChat mini-program version 2.0 that integrates life inspiration proposals, product usage tips, immersive
shopping, after-sales services, and membership activities, and provides the members with a unique product and service experience and
enhance the added value of products and the brand reputation.
(II) Export sales during the reporting period
In the second half of 2023, thanks to the organic growth of SEB Group and its demand for channel-based replenishment of
inventory, the prospect of the Company's export business continues to recover and has achieved a rapid growth throughout the year.
2. Revenues and costs
(1) Structure of operating incomes
Unit: RMB
2023 2022
Increase/decreas
Percentage to total Percentage to total e YoY (%)
Amount Amount
operating income operating income
Total operating income 21,303,948,642.66 100% 20,170,527,516.66 100% 5.62%
By industry
Cookware 6,056,346,176.44 28.43% 6,121,737,273.97 30.35% -1.07%
Electric appliances 14,963,200,632.70 70.24% 13,803,483,799.48 68.43% 8.40%
Others 284,401,833.52 1.33% 245,306,443.21 1.22% 15.94%
By products
Cooking appliances 8,892,495,620.60 41.74% 8,506,984,442.90 42.18% 4.53%
Food processor
3,483,787,979.06 16.35% 3,086,500,276.55 15.30% 12.87%
appliances
Cookware and utensils 6,056,346,176.44 28.43% 6,121,737,273.97 30.35% -1.07%
Other household electric
2,871,318,866.56 13.48% 2,455,305,523.24 12.17% 16.94%
appliances
By areas
Domestic sales 15,107,615,309.80 70.91% 14,975,644,970.69 74.25% 0.88%
14
2023 Annual Report of Zhejiang Supor Co., Ltd.
Export sales 6,196,333,332.86 29.09% 5,194,882,545.97 25.75% 19.28%
By sales mode
Direct sales 2,491,265,297.18 11.69% 2,327,273,967.60 11.54% 7.05%
Distribution 12,627,187,506.73 59.27% 12,652,370,630.22 62.73% -0.20%
OEM 6,185,495,838.75 29.04% 5,190,882,918.84 25.73% 19.16%
Remarks: "Others" by industry, "Other domestic electric appliances" by product, and region-based and sales-based modes exceptionally
include other business incomes, the same below.
(2) Industry, product, area or sales mode that accounts for more than 10% of the Company's operating income or operating
profit
Applicable □ Not applicable
Unit: RMB
Increase/decrease Increase/decrease Increase/decrea
Gross
Operating income Operating cost YoY (%) for YoY (%) for se YoY (%) for
margin
operating income operating cost gross margin
By industry
Cookware 6,056,346,176.44 4,320,256,178.21 28.67% -1.07% 1.01% -1.46%
Electric appliances 14,963,200,632.70 11,141,680,549.71 25.54% 8.40% 6.24% 1.51%
By products
Cooking appliances 8,892,495,620.60 6,636,399,009.13 25.37% 4.53% 2.95% 1.15%
Food processor
3,483,787,979.06 2,714,622,203.95 22.08% 12.87% 9.57% 2.35%
appliances
Cookware and
6,056,346,176.44 4,320,256,178.21 28.67% -1.07% 1.01% -1.46%
utensils
Other household
2,871,318,866.56 2,028,851,458.02 29.34% 16.94% 14.73% 1.36%
electric appliances
By areas
Domestic sales 15,107,615,309.80 10,771,952,519.69 28.70% 0.88% 0.35% 0.38%
Export sales 6,196,333,332.86 4,928,176,329.62 20.47% 19.28% 16.37% 1.99%
By sales mode
Direct sales 2,491,265,297.18 1,404,342,328.21 43.63% 7.05% 5.76% 0.69%
Distribution 12,627,187,506.73 9,377,921,888.23 25.73% -0.20% -0.34% 0.10%
OEM 6,185,495,838.75 4,917,864,632.87 20.49% 19.16% 16.22% 2.01%
If the statistical caliber of the Company's operation business data is adjusted during the reporting period, the main business data for the
latest year after the statistical caliber is adjusted.
□ Applicable Not applicable
(3) Practical sales revenue greater than labor income
Yes □ No
15
2023 Annual Report of Zhejiang Supor Co., Ltd.
Industrial Increase/decrease
Item Unit 2023 2022
classification YoY (%)
Sales volume pcs/set 76,737,832 71,416,579 7.45%
Cookware Output pcs/set 43,455,407 38,865,026 11.81%
Stock pcs/set 9,247,340 10,549,133 -12.34%
Sales volume pcs/set 90,512,223 82,690,074 9.46%
Electrical products Output pcs/set 59,397,238 51,085,806 16.27%
Stock pcs/set 10,372,883 10,182,368 1.87%
Sales volume pcs/set 167,250,055 154,106,653 8.53%
Total Output pcs/set 102,852,645 89,950,832 14.34%
Stock pcs/set 19,620,223 20,731,501 -5.36%
Descriptions of cause with above 30% change of relevant data on a YoY basis
□ Applicable Not applicable
(4) Performance of important sales contracts and purchase contracts signed till this reporting period
□ Applicable Not applicable
(5) Structure of operating costs
Category of industry and product
Unit: RMB
2023 2022
Industrial Increase/decr
Item Proportion of Proportion of
classification Amount Amount ease YoY (%)
operating cost operating cost
Cookware Operating cost 4,320,256,178.21 27.52% 4,277,114,265.06 28.57% 1.01%
Electric
Operating cost 11,141,680,549.71 70.97% 10,486,986,687.23 70.06% 6.24%
appliances
Others Operating cost 238,192,121.39 1.51% 205,227,888.28 1.37% 16.06%
Unit: RMB
2023 2022
Category of Increase/decr
Item Proportion of Proportion of
product Amount Amount ease YoY (%)
operating cost operating cost
Cooking
Operating cost 6,636,399,009.13 42.27% 6,446,395,980.91 43.07% 2.95%
appliances
Food processor
Operating cost 2,714,622,203.95 17.29% 2,477,448,255.92 16.55% 9.57%
appliances
Cookware and
Operating cost 4,320,256,178.21 27.52% 4,277,114,265.06 28.57% 1.01%
utensils
Other household
electric Operating cost 2,028,851,458.02 12.92% 1,768,370,338.68 11.81% 14.73%
appliances
16
2023 Annual Report of Zhejiang Supor Co., Ltd.
(6) Change of merger scope during the reporting period
□ Yes No
(7) Important change or adjustment for the Company's businesses, products or services during the reporting period
□ Applicable Not applicable
(8) Main sales customers and suppliers
Main sales customers
Total amount of sales to top 5 customers (RMB) 8,867,018,817.23
Proportion of total amount of sales of top 5 customers in the year's total sales (%) 41.63%
Proportion for related party's sales amount of sales amount of top 5 customers in annual total sales
27.45%
amount
Information on the Company's top 5 major customers
Proportion in the total sales
SN Customer Sales amount (RMB)
amount of the year (%)
1 SEB S.A. and its subsidiaries 5,847,094,927.83 27.45%
2 Customer 1 1,298,686,493.62 6.10%
3 Customer 2 975,221,875.17 4.58%
4 Customer 3 412,687,675.57 1.94%
5 Customer 4 333,327,845.04 1.56%
Total -- 8,867,018,817.23 41.63%
Instruction for main customers' other cases
□ Applicable Not applicable
The Company's main supplier
Total purchasing value from top 5 suppliers (RMB) 1,275,239,201.21
Proportion of total purchase amount of top 5 suppliers in the year's total purchasing value 9.59%
Proportion for related party's purchase amount of purchase amount of top 5 suppliers in annual total
0.00%
purchase amount
Information on the Company's top 5 suppliers
Proportion in the total purchase
SN Supplier Purchasing value (RMB)
amount of the year (%)
1 Supplier 1 341,512,061.90 2.57%
2 Supplier 2 277,959,376.46 2.09%
3 Supplier 3 248,469,619.54 1.87%
4 Supplier 4 203,761,108.94 1.53%
5 Supplier 5 203,537,034.37 1.53%
Total -- 1,275,239,201.21 9.59%
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Instruction for main suppliers' other cases
□ Applicable Not applicable
3. Costs
Unit: RMB
Increase/dec
2023 2022 rease YoY Descriptions of major changes
(%)
Sales expenses 2,297,847,425.74 2,156,297,058.63 6.56%
Administrative expenses 393,597,966.82 374,060,640.28 5.22%
Mainly due to the decrease in foreign exchange gains
compared to the same period last year as a result of
Financial expenses -67,629,941.36 -97,423,287.91 30.58%
RMB exchange rate fluctuations during the reporting
period.
R&D expenses 431,288,536.29 416,259,356.99 3.61%
4. R&D input
Applicable □ Not applicable
Oriented by consumers' demand, the Company engages in R&D of the differential products that meet kitchen demand and local
eating and life habits. The Company lays emphasis on R&D investment, boosts technical innovation actively, further explores product
category and adds product additional value; respects customer's experience and focuses on all details of consumer use in order to realize
safe, environmentally friendly, convenient and fashionable products. R&D expenditure in this year accounts for 6.80% and 2.02% of
net assets and operating income audited in the recent period.
R&D personnel of the Company
2023 2022 Change proportion
Quantity of R&D personnel (person) 1,372 1,363 0.66%
Proportion of R&D personnel 12.76% 13.33% -0.57%
Educational background structure of R&D personnel
Bachelor's degree 605 567 6.70%
Master's degree 60 53 13.21%
Doctor's degree 2 0 100.00%
Age composition of R&D personnel
＜ 30 years old 358 381 -6.04%
30-40 years old 669 682 -1.91%
R&D investment of the Company
2023 2022 Change proportion
Amount of R&D input (RMB) 431,288,536.29 416,259,356.99 3.61%
Proportion of R&D input in total operating income 2.02% 2.06% -0.04%
18
2023 Annual Report of Zhejiang Supor Co., Ltd.
Capitalization amount of R&D input (RMB) 0.00 0.00 0.00%
Proportion of Capitalization R&D input in R&D input 0.00% 0.00% 0.00%
Cause and influence of major changes of the Company's R&D personnel composition
□ Applicable Not applicable
Reason for large change for proportion of total R&D input in operating income compared with that of last year
□ Applicable Not applicable
Reason and rational introduction for large capitalization change of R&D input
□ Applicable Not applicable
5. Cash flow
Unit: RMB
Increase/decrease YoY
Item 2023 2022
(%)
Subtotal of cash inflows from operating activities 22,567,791,526.90 23,863,910,846.37 -5.43%
Subtotal of cash outflows from operating activities 20,532,882,190.70 20,703,955,600.53 -0.83%
Net cash flows from operating activities 2,034,909,336.20 3,159,955,245.84 -35.60%
Subtotal of cash inflows from investing activities 2,816,155,174.07 3,290,816,398.77 -14.42%
Subtotal of cash outflows from investing activities 3,060,601,235.74 3,762,872,224.32 -18.66%
Net cash flows from investing activities -244,446,061.67 -472,055,825.55 48.22%
Subtotal of cash inflows from financing activities 198,583,388.57 11,094,652.76 1,689.90%
Subtotal of cash outflows from financing activities 2,980,245,622.68 2,776,624,440.47 7.33%
Net cash flows from financing activities -2,781,662,234.11 -2,765,529,787.71 -0.58%
Net increase in cash and cash equivalents -990,179,816.02 -47,798,926.68 -1,971.55%
Instruction for main influence factors of relevant data with YoY (%) changed seriously
Applicable □ Not applicable
1. The net cash flows from operating activities decreased by 35.60 year-on-year, mainly due to the cash inflow decrease for goods sold
and rendering of services during the reporting period.
2. The net cash flows from investing activities increased by 48.22% year-on-year, mainly due to the cash outflow decrease in investing
activities during the reporting period in term deposits and financial products for a period of more than 3 months.
3. The net increase in cash and cash equivalents decreased by 1,971.55% year-on-year, mainly due to the cash inflow decrease in
operating activities during the reporting period.
Reason for great change between net cash flow caused by operating activities and annual net profits during the reporting period
□ Applicable Not applicable
V. Analysis on Non-main Business
□ Applicable Not applicable
19
2023 Annual Report of Zhejiang Supor Co., Ltd.
VI. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: RMB
End of 2023 Beginning of 2023
Increase/dec
Percentage Percentage rease in Descriptions of major changes
Amount to total Amount to total proportion
assets assets
No significant change during the
Monetary capital 3,548,277,442.44 27.07% 3,563,140,907.75 27.51% -0.44%
reporting period.
Mainly due to the export accounts
Accounts
2,858,247,356.03 21.81% 1,926,518,118.38 14.87% 6.94% receivable increase at the end of the
receivable
reporting period.
Mainly due to the reasonable
Inventories 2,262,683,387.31 17.26% 2,494,922,856.42 19.26% -2.00% control of inventory during the
reporting period.
Long-term equity No significant change during the
61,678,984.35 0.47% 62,196,139.53 0.48% -0.01%
investment reporting period.
No significant change during the
Fixed assets 1,243,210,689.64 9.49% 1,303,075,391.03 10.06% -0.57%
reporting period.
Construction in No significant change during the
26,862,380.61 0.20% 12,005,654.73 0.09% 0.11%
progress reporting period.
Right-of-use No significant change during the
223,503,573.14 1.71% 190,718,962.82 1.47% 0.24%
assets reporting period.
Mainly due to the discount of bank
Short-term
199,741,167.36 1.52% 1.52% acceptance bills of subsidiaries at
borrowings
the reporting period.
Mainly due to the decrease in
Contract advance payments from some
862,706,076.18 6.58% 1,153,932,879.53 8.91% -2.33%
liabilities distributors by subsidiaries during
the reporting period.
No significant change during the
Lease obligation 177,281,125.36 1.35% 150,779,916.58 1.16% 0.19%
reporting period.
Mainly due to the decrease in the
Advance payment 193,169,455.51 1.47% 339,609,547.02 2.62% -1.15% prepaid material payments at the
end of the reporting period.
Mainly due to the maturity and
Other current
142,423,696.22 1.09% 450,986,016.76 3.48% -2.39% delivery of term deposit investment
assets
at the end of the reporting period.
Mainly due to the increase in
Non-current
negotiable certificates of deposit
assets due within 285,783,958.92 2.18% 32,157,534.25 0.25% 1.93%
due within one year at the end of the
one year
reporting period.
Mainly due to the decrease in
Other debt negotiable certificates of deposit
665,522,383.56 5.08% 1,024,794,890.43 7.91% -2.83%
investment due over one year at the end of the
reporting period.
High proportion of overseas assets
□ Applicable Not applicable
20
2023 Annual Report of Zhejiang Supor Co., Ltd.
2. Assets and liabilities measured at the fair value
Applicable □ Not applicable
Unit: RMB
Profit and
Accumulated
loss from fair Impairment
fair value Amount of Amount of
value loss of the
Item Opening balance changes purchasing of the selling of the Other changes Closing balance
changes in current
recognized current period current period
the current period
through equity
period
Financial assets
1. Transactional financial
assets (excluding
431,382,527.79 9,108,058.94 450,000,000.00 539,352,799.19 351,137,787.54
derivative financial
assets)
2. Receivables financing 235,957,044.34 127,575,721.01 363,532,765.35
3. Other debt investments 1,056,952,424.68 267,798,711.63 407,384,328.77 33,939,534.94 951,306,342.48
Total 1,724,291,996.81 9,108,058.94 717,798,711.63 946,737,127.96 161,515,255.95 1,665,976,895.37
Financial liabilities 0.00 0.00
Content of other changes
Receivables financing: As the demand of daily fund management, the Company will discount or transfer an endorsed bill, the business
mode of related bank acceptance bill including not only collect contractual cash flow but sales as the target, so reclass the bank
acceptance bill as financial assets at fair value through other comprehensive incomes.
Other debt investment: Supor's business model of managing negotiable large deposit certificates is both to collect the contractual cash
flow and to sell the negotiable certificates of deposit, which are classified as financial assets at fair value through other comprehensive
incomes. Interest revenue is accrued according to the effective interest rate method during the expected duration.
Are there any major changes about the valuation attribute of Company's main assets during the reporting period?
□ Yes No
3. Restrictions of assets and rights by the end of reporting period
See 18. "Assets with title or use right restrictions", VII "Notes to items of consolidated financial statements", SECTION X
"FINANCIAL REPORT" for details.
VII. Investment Situation Analysis
1. General condition
□ Applicable Not applicable
2. Significant equity investment to be acquired during the reporting period
□ Applicable Not applicable
3. Significant non-equity investment to be handled during the reporting period
□ Applicable Not applicable
21
2023 Annual Report of Zhejiang Supor Co., Ltd.
4. Investments in financial assets
(1) Conditions of the securities investment
□ Applicable Not applicable
The Company involves no securities investment during the reporting period.
(2) Derivative investment
Applicable □ Not applicable
1) Hedging derivative investment during the reporting period
Applicable □ Not applicable
Unit: RMB 10,000
Proportion of
investment
Profit and Accumulated amount at the
Purchase
loss from fair value Sales amount end of the
Initial amount
Opening fair value changes during the Closing period in the
Derivative investment type investment during the
balance changes in recognized reporting amount Company's net
amount reporting
the current through period assets at the
period
period equity end of the
reporting
period
Foreign exchange derivatives 4,744.22 4,744.22 -97.03 0 80,127.89 67,269.21 17,602.90 2.77%
Total 4,744.22 4,744.22 -97.03 0 80,127.89 67,269.21 17,602.90 2.77%
Explanation on whether the
Company's accounting policies
and specific accounting The company recognizes, measures, and presents in accordance with Accounting Standards for Business Enterprises
principles of hedging business No. 22 -- Recognition and Measurement of Financial Instruments, Accounting Standards for Business
have significantly changed Enterprises No. 24 - Hedging, and Accounting Standards for Business Enterprises No. 37 - Presentation
during the reporting period of Financial Instruments . There are no significant changes compared to the previous reporting period.
compared with the previous
reporting period
During the reporting period, the company conducted derivative transactions and fair value hedging in accordance
with the variety and duration determined by the Board of Directors. During the reporting period, the amount
Explanation on realized gains and recognized through current profits and losses was RMB -970,300, and the amount recognized through equity was
losses during the reporting period RMB 0. The amount of profit or loss is entirely derived from the net fair value change formed by the forward
settlement of foreign exchange and the hedged item. During the reporting period, the Company did not engage in
foreign exchange swap business, with no profit or loss or equity impact.
The value of hedging tools of the Company changed inversely to that of hedged foreign exchange accounts receivable
and payable, effectively achieving the risk management objectives.
During the reporting period, the Company conducted assessment on the fluctuation of the value of foreign exchange
Explanation on hedging effect accounts receivable and payable, and signed forward exchange contracts with banks in the same currency. Such
hedging tool was one of those approved by the Board of Directors.
The execution complied with the internal control requirements and operated within the approved quota to ensure that
the hedging tools match the hedged items in the scale, term, and currency.
Capital source of derivative
Self-owned capital
investment
In order to hedge the foreign exchange risk in operating activities, reduce the impact of exchange rate fluctuations,
Risk analysis and control
and give full play to the hedging function of foreign exchange derivative transaction, the Company implemented
22
2023 Annual Report of Zhejiang Supor Co., Ltd.
measure explanation for foreign exchange derivative transaction business consistent with its business scale, term, and currency.
derivative holding a position (I) Risks of conducting foreign exchange derivative transactions
during the reporting period 1. Market risks: market risks, such as losses resulted from changes in the price of foreign exchange derivatives due
(including but not limited to to the fluctuated underlying interest rate, exchange rate or other market price, may arise.
market risk, liquidity risk, credit 2. Internal control risks: considering the specialty and complexity of foreign exchange derivative transaction
risk, operation risk and law risk) business, inadequate internal control mechanisms may lead to risks.
3. Liquidity risks: risk of failure to complete transactions due to lack of market liquidity.
4. Performance risks: foreign exchange derivatives business faces the risk of default due to failed contract fulfillment
when the contract expires.
5. Legal risks: changes in relevant laws or violations of the relevant legal system by counterparty, resulting the
contract cannot be executed properly, may cause losses to the Company.
(II) Risk response measures
1. Clarify the principles of foreign exchange derivative transaction: foreign exchange derivative transaction is based
on the hedging principle to avoid risks from exchange rate fluctuations to the greatest extent, and based on market
conditions, operation strategies shall be adjusted in time to improve hedging effects.
2. System construction: the Company has established the Management Measures for Foreign Exchange Derivative
Transactions, in which the scope of authorization, approval procedures, key operation points, risk management and
information disclosure concerning foreign exchange derivative transactions are well defined, so that the conduct and
risks of foreign exchange derivative transactions can be effectively regulated.
3. Product selection: prior to any foreign exchange derivative transaction, it's necessary to select an FX derivative
that suits the company's business context best, and is highly liquid and risk through a comparative analysis of various
counterparties and products, before conducting business. The Company used forward instruments for general hedge
and swap contracts for rolling hedge.
4. Counterparty management: be prudent when selecting counterparties for foreign exchange derivatives business.
The Company only conducts foreign exchange derivative transaction business with large commercial banks and other
foreign exchange organization with legal qualifications, thus avoiding potential default and legal risks.
5. Management by specially-assigned persons: a special working group, set up by the Company's management
representatives, Fund Department, Financial Sharing Center, Audit Department, Securities Department and other
departments concerned, is responsible for the risk assessment, operation, recording and supervision of foreign
exchange derivative transactions. The working group is supposed to decide on emergency mitigations in case of any
significant changes in the market.
Changes in market prices or
product fair values of invested
derivatives during the reporting The delivered foreign exchange derivatives were recorded as the profit and loss with instruments by our Company.
period, specific methods used for Changes in the fair value of undelivered foreign exchange derivatives were evaluated by the comparison between
analysis of the fair value of the exchange rate of the derivative contract and the corresponding forward foreign exchange quotation provided by
derivatives and the setting of the contracting bank at the end of the period.
related assumptions and
parameters
Litigation-related situation (if
Not applicable
applicable)
As for approval of derivative
investment, the Board of
March 31, 2023
Directors will announce
disclosure date (if any)
In the opinion of the Company's independent directors, the foreign exchange derivatives business carried out by the
Company is closely related to the daily operation demand, which is conducive to avoiding the risk of exchange rate
Special opinion on situations of fluctuation, enhancing the financial stability of the Company, and meeting the needs of the Company's operation and
the Company's derivative development. The Company has formulated the Internal Control System of Foreign Exchange Derivatives and
investment and risk control from relevant risk control measures, which are conducive to strengthening the risk management and control of foreign
independent directors exchange derivatives transactions. The Company has fulfilled the corresponding approval procedures and
information disclosure obligations, and there is no damage to the interests of the Company and all shareholders,
especially small and medium shareholders. We agree to carry out foreign exchange derivatives trading business.
23
2023 Annual Report of Zhejiang Supor Co., Ltd.
2) Speculation derivative investment during the reporting period
□ Applicable Not applicable
During the reporting period, there was no speculative investment on derivatives.
5. Application of capital raised
□ Applicable Not applicable
No capital raised was used in reporting period
VIII. Sales for major assets and equity
1. Sales for major assets
□ Applicable Not applicable
The Company did not sell major assets till the end of the reporting period.
2. Sales for major equities
□ Applicable Not applicable
IX. Analysis for Main Holding Companies and Joint Stock Companies
Applicable □ Not applicable
Status of main subsidiaries and joint stock companies with influence on the Company's net profit exceeding 10%
Unit: RMB
Company Registered Operating
Company name Main business Total assets Net assets Operating profit Net profit
type capital income
Wuhan Supor Cookware RMB 91.16
Subsidiary Cookware 1,188,975,833.22 389,638,504.94 3,377,165,420.21 103,007,739.66 77,771,419.02
Co., Ltd. million
Zhejiang Supor Electrical RMB
Electrical
Appliances Subsidiary 133.6971 1,513,408,752.24 522,665,906.31 4,090,061,770.47 190,209,857.89 142,895,007.53
products
Manufacturing Co., Ltd. million
Small domestic
Zhejiang Shaoxing Supor
appliances, RMB 610
Domestic Electrical Subsidiary 3,008,387,070.85 2,036,578,112.96 6,493,321,049.09 1,222,688,830.71 1,075,167,205.87
kitchen million
Appliances Co., Ltd.
appliances
Subsidiary obtaining and disposal details during the reporting period
□ Applicable Not applicable
X. Structural Subject under the Company's Control
□ Applicable Not applicable
XI. Prospects for Future Development
1. Future development strategy and operation plan of the Company
24
2023 Annual Report of Zhejiang Supor Co., Ltd.
As a new development pattern with domestic circulation as the core is constructed, under which domestic and international
circulations reinforce each other, the policies of expanding domestic demand and promoting consumption will continue to take effect.
The strong magnetic force of China's enormous domestic market remains unchanged, where the middle class and young generation
boost consumption growth constantly. The Company will persistently implement the predefined strategies and guidelines, with the
consumers' demand as the orientation, constantly promote the product innovation strategy and quality product strategy, and further
give play to the competitive advantages of the Company in the small domestic appliances and kitchen filed in terms of diversified
brands and product categories, cultivate new businesses and new product categories, promote the development of segment categories,
and meet the diversified consumption demand.
In terms of channels, the Company will strengthen the refined management of internet platforms and continuously improve the
precise operation with the help of digitalization. In terms of conventional e-commerce, the Company actively cooperate with the
strategies of various platforms, utilizes the policy opportunities in relation to the platforms, manages the category and price system
across the platforms, continuously improves the market share and sales scale of conventional e-commerce market. In terms of emerging
and live streaming e-commerce platforms, the Company focuses on high-quality output of short videos and contents, with a view to
creating best-seller products in core categories, gaining more traffic opportunities, and continuously improving the conversion rate and
repurchase rate which helps to effectively improving marketing efficiency. In terms of offline business, the Company continues to
improve and optimize the sales network on the basis of the original tens of thousands sales terminals across China, and deepen the
channels such as internet sinking, conventional distribution, home decoration, instant retail. The Company expedites the penetration
into the third, fourth, and even rural markets through the distribution platforms of JD.com, Alibaba, and Suning. In addition, the
Company fully takes advantage of its excellent distributor network coverage capabilities to utilize online and offline business
opportunities in instant retail, community services, etc.; further enhances the cooperation with primary stores, consolidates the
advantageous position of the Supor brand in major retail channels.
In terms of brand building, the Company will strengthen the brand coverage of segmented groups (e.g., mothers and infants, and
silver hair) and scenes (e.g., outdoor activities), continuously explore new business growth points, and maintain the brand vitality. For
the maternal and child population, the Company develops a sub-brand with feeding appliances and feeding tools as the core categories
to further explore the maternal and child market. In terms of marketing, the Company will actively try out new marketing tools and
models, explore the application of AI technology in marketing, and use tools such as AI virtual human livestreaming, AI drawing, and
AI video production to promote the cost reduction and efficiency increase in marketing. At the same time, the Company will strengthen
the brand communication, consolidate the brand image, and launch a series of membership activities by taking the 30th anniversary of
the Company's establishment as a tipping point, to give back to brand fans and enhance user loyalty.
With respect to export business, the Company, regardless of uncertain international situation, the Company keeps advancing the
cooperation with SEB Group in links such as R&D, design and manufacturing, enlarge production scale, acquire scale cost-based
competitive advantage and improve core competence of foreign trade in virtue of order transfer advantage of SEB.
With regard to industrial aspect, the Company will further conduct cost optimization and lean economy program, strengthen basic
management over R&D, promote market's rapid response capacity of industrial system, and continuously improve cost competitiveness.
Meanwhile, under the guidance of the national "carbon peaking and carbon neutrality goals" strategy, the Company continues to
introduce the concepts of green operation in responsible supply, low-carbon logistics, green consumption and other aspects. With the
goal of low-carbon action, the Company improves the utilization rate of resources, continuously reduces greenhouse gas and waste
emissions, and promotes the sustainable development of the industry and enterprises. With the WMF factory in Yuhuan successfully
generates photovoltaic powers in November 2023, it is expected that the proportion of green photovoltaic energy consumption in the
total power consumption will reach 15% for each year in the future, representing a reduction of about 12% in the total carbon emission.
Meanwhile, the Company will gradually carry out carbon reduction projects such as deploying smart meters and replacing high energy-
consuming equipment to achieve the carbon neutrality goal sooner.
25
2023 Annual Report of Zhejiang Supor Co., Ltd.
With respect to talent training, the Company will strengthen talent echelon construction and improve long-term incentive
mechanism continuously; improve management level of basic and medium management personnel, enhance subjective initiative of
employees and build an active and efficient working atmosphere for employees.
2. Possible risks and countermeasures
(1) Risk from macroeconomic fluctuation
In 2023, the domestic service-oriented consumer industry is experiencing growth for recovery, while the demand for cookware
and domestic appliances at the retail end remains sluggish. The home appliance market in China has developed from a simple
incremental market to an incremental and inventory market, where a new consumption format is formed with the prevailing
consumption rationality and the coexistence of consumption degradation and consumption upgrade. In 2024, Supor will continue to
insist on its established strategy to upgrade the product structure to stimulate the demand for conventional product replacement on the
one hand; and to look for new growth point through exploration of new categories and new scenes on the other hand.
In terms of exports, with the recovery of the demand in the European and American markets after destocking, it is expected that
the export business will continue to improve in 2024, and the Company will work with foreign trade customers to promote new product
R&D, improve efficiency, reduce costs, and enhance the competitiveness of the Company's foreign trade business together.
(2) Risk from production element price change
In 2023, the prices of main bulk raw materials such as aluminum, copper, stainless steel, and plastic for cookware and small
domestic appliances have declined to a stabilized state, which has played a positive role in reducing production costs for industry
enterprises. Supor will continue to implement cost-reduction lean projects to improve the internal labor productivity, so that the cost
competitiveness of the Company's internal and external sales business can be enhanced. Besides the Company is actively boosting the
automation of production line, improving the per capita labor output, and reduce the impact caused by rise in labor cost.
(3) Risk of intensifying market competitiveness
With the grading of consumption in the cookware and home appliance market, on the one hand, high-end brands continue to sink
their channels and adjust their product and price strategies in order to take up more market share, and on the other hand, the sales
impact brought by competitions between platforms and is expected to intensify the cost performance battle in the coming year.
The Company will continue to adhere to the strategy of product innovation as its core, and launch more high value-added and
high margin products through continuous improvement of innovation capacity, in order to gain a leading sales position and a leading
market share in the mid to high price range. Meanwhile, the Company will also increase the product marketing through online terminal
traffic appropriately, take advantage of its comprehensive competitive advantage in terms of multiple brands and categories, and
continuously input marketing resources to improve market shares. In addition, the Company will actively invest in the markets in
lower-tier cities in order to reach more consumer groups. The Company will continue to strengthen and expand its core categories,
expedite the product layout in emerging categories and segment markets, and to maintain a steady and sustainable growth for the
Company in the future.
(4) Product export and exchange loss caused by exchange rate fluctuation
The Company has adopted RMB settlement for main export customer SEB Group with low exchange rate risk.
XII. Investigation & Research, Communication and Interview Activities During the Reporting
Period
Applicable □ Not applicable
Type of Main content talked
Reception Reception Index for basic condition of
Reception time reception Reception object about and materials
place manner investigation and survey
object provided
Analysts and Annual performance See the Management File for
February 6, 2023 Company Field survey Institution
institutional and operating Investor Relations of Supor on
26
2023 Annual Report of Zhejiang Supor Co., Ltd.
investors conditions in 2022 February 7, 2023 (1) disclosed
by the Company in
http://www.cninfo.com.cn on
February 7, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Annual performance
February 7, 2023 (2) disclosed
February 6, 2023 Company Field survey Institution institutional and operating
by the Company in
investors conditions in 2022
http://www.cninfo.com.cn on
February 7, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Annual performance
February 13, 2023 disclosed by
February 10, 2023 Company Field survey Institution institutional and operating
the Company in
investors conditions in 2022
http://www.cninfo.com.cn on
February 13, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Annual performance
Conference April 3, 2023 (1) disclosed by
March 31, 2023 Company Institution institutional and operating
call the Company in
investors conditions in 2022
http://www.cninfo.com.cn on
April 3, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Annual performance
Conference April 3, 2023 (2) disclosed by
March 31, 2023 Company Institution institutional and operating
call the Company in
investors conditions in 2022
http://www.cninfo.com.cn on
April 3, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Annual performance
Conference April 4, 2023 (1) disclosed by
April 3, 2023 Company Institution institutional and operating
call the Company in
investors conditions in 2022
http://www.cninfo.com.cn on
April 4, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Annual performance
Conference April 4, 2023 (2) disclosed by
April 3, 2023 Company Institution institutional and operating
call the Company in
investors conditions in 2022
http://www.cninfo.com.cn on
April 4, 2023 for details.
See the Supor Performance
Presentation Session and
Roadshow Activity Information
Investors of the Annual performance
April 12, 2023 Company Others Others on April 12, 2023 disclosed by
Company presentation session
the Company in
http://www.cninfo.com.cn on
April 12, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Performance and
Conference May 4, 2023 (1) disclosed by
April 28, 2023 Company Institution institutional operating conditions in
call the Company in
investors Q1 of 2023
http://www.cninfo.com.cn on
May 4, 2023 for details.
See the Management File for
Analysts and Performance and
Conference Investor Relations of Supor on
April 28, 2023 Company Institution institutional operating conditions in
call May 4, 2023 (2) disclosed by
investors Q1 of 2023
the Company in
27
2023 Annual Report of Zhejiang Supor Co., Ltd.
http://www.cninfo.com.cn on
May 4, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Performance and
May 18, 2023 - May 22, 2023 disclosed by the
Company Field survey Institution institutional operating conditions in
May 19, 2023 Company in
investors Q1 of 2023
http://www.cninfo.com.cn on
May 22, 2023 for details.
See the Management File for
Semiannual Investor Relations of Supor on
Analysts and
Conference performance and August 2, 2023 (1) disclosed by
August 1,2023 Company Institution institutional
call operating conditions in the Company in
investors
2023 http://www.cninfo.com.cn on
August 2, 2023 for details.
See the Management File for
Semiannual Investor Relations of Supor on
Analysts and
Conference performance and August 2, 2023 (2) disclosed by
August 1,2023 Company Institution institutional
call operating conditions in the Company in
investors
2023 http://www.cninfo.com.cn on
August 2, 2023 for details.
See the Management File for
Semiannual Investor Relations of Supor on
Analysts and
Conference performance and September 4, 2023 (1) disclosed
August 31, 2023 Company Institution institutional
call operating conditions in by the Company in
investors
2023 http://www.cninfo.com.cn on
September 4, 2023 for details.
See the Management File for
Semiannual Investor Relations of Supor on
Analysts and
Conference performance and September 4, 2023 (2) disclosed
September 1,2023 Company Institution institutional
call operating conditions in by the Company in
investors
2023 http://www.cninfo.com.cn on
September 4, 2023 for details.
See the Management File for
Semiannual Investor Relations of Supor on
Analysts and
performance and September 25, 2023 disclosed
September 21, 2023 Company Field survey Institution institutional
operating conditions in by the Company in
investors
2023 http://www.cninfo.com.cn on
September 25, 2023 for details.
See the Management File for
Investor Relations of Supor on
Analysts and Performance and
Conference October 30, 2023 disclosed by
October 27, 2023 Company Institution institutional operating conditions in
call the Company in
investors Q3 of 2023
http://www.cninfo.com.cn on
October 30, 2023 for details.
XIII、Implementation of the Action Plan for "Dual Improvement of Quality and Return"
Has the company disclosed an action plan for "dual improvement of quality and return"。
□Yes No
28
2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION IV CORPORATION GOVERNANCE
I. Basic Situation
During the reporting period, the Company further standardized the operation of the Company and improved the governance by
continuously building up and strengthening the corporate governance system, improving the internal control and management system,
and deepening the governing process strictly in accordance with the Company Law, the Securities Law and the Rules on the Corporate
Governance of Listed Companies, Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and the Shenzhen Stock Exchange
Regulatory Guidelines for Listed Companies No. 1-Standardized Operation of Listed Companies as well as other regulations of CSRC.
By the end of the reporting period, the actual governance of the Company was basically in compliance with the relevant regulations of
corporate governance of listed companies issued by the CSRC and Shenzhen Stock Exchange, and with the rules of established systems
of the Company. No administrative regulation measures were taken by regulatory department upon the Company.
(I) Relating to Shareholders and the General Meeting of Shareholders
During the reporting period, the Company has convened and held the general meetings of shareholders strictly according to the
Rules for the General Meetings of Shareholders of Listed Companies, Rules and Procedures for the Shareholders' Meeting, and other
rules and requirements, and ensured the legality and validity of the convening. According to the Implementing Rules for the Online
Voting at the Shareholders' Assembly of Listed Companies of Shenzhen Stock Exchange, the Company clearly defined the specific
process of online voting and completely implemented online voting of general meeting of shareholders, in order to involve medium
and small investors in the online voting more effectively, and guarantee the legitimate rights and interests of all shareholders, especially
of the minority shareholders.
During the reporting period, four General Meetings of Shareholders were held. The convening and holding procedures,
qualifications of attended persons, voting procedures, voting results and resolution contents of the meeting conformed to laws and
regulations and Articles of Association.
(II) Relating to the Company and the Controlling Shareholder
During the reporting period, the Company was autonomous in business and operation, and kept independent of its controlling
shareholder in terms of assets, business, personnel, organization and finance. The Board of Directors, the Board of Supervisors and
other internal organizations operate independently. The Controlling Shareholder of the Company exercised its rights through the
General Meeting of Shareholders, and did not directly or indirectly intervene with the Company's decision-making or operating
activities. The related transaction between the Company and its Controlling Shareholder was fair and reasonable; the decision-making
rules were in compliance with the relevant provisions; no fund occupation by the Controlling Shareholder existed.
(III) Relating to Directors and the Board of Directors
The Company elected directors strictly according to the procedures stipulated in the Company Law and the Articles of Association,
and ensured the open, fair, equitable and independent appointment and election of directors, and the number and composition of the
Board of Directors follow relevant laws and regulations. Now the Company has three independent directors, representing 1/3 of its
directors. All directors have actively participated in the Company's operation and decision-making activities, performed their duties,
attended the relevant training sessions organized by supervisory departments, pursuant to the Company Law, the Shenzhen Stock
Exchange Regulatory Guidelines for Listed Companies No. 1-Standardized Operation of Listed Companies, the Articles of Association
and the Rules and Procedures for the Board of Directors. The Board of Directors consists of Strategy Committee, Audit Committee
and Compensation Committee with independent directors fully exerting their specialties, which further improves the working efficiency
and decision-making level of the Board of Directors and plays significant roles in the Company's normative operation.
During the reporting period, eight board meetings were held. The convening and holding procedures, qualifications of attended
persons, voting procedures, voting results and resolution contents of the meeting conformed to laws and regulations and Articles of
29
2023 Annual Report of Zhejiang Supor Co., Ltd.
Association. In addition, the Company held an election of new Board of Directors and elected the members of the Eighth Board of
Directors at the Annual General Meeting of Shareholders for 2022 Fiscal Year.
(IV) Relating to Supervisors and the Board of Supervisors
The Company elected supervisors strictly according to the provisions under the Company Law and the Articles of Association.
The number of supervisors and composition of the Board of Supervisors met the requirement of relevant laws and regulations. All
supervisors have performed their duties as required by the Regulations of Procedure of the Board of Supervisors, effectively supervised
the legality and regulatory compliance of important matters, related transactions, financial conditions, and duty fulfillment of directors
and senior executives of the Company, and maintained the legitimate rights and interests of the Company and its shareholders.
During the reporting period, eight meetings of Board of Supervisors were held. The convening and holding procedures,
qualifications of attended persons, voting procedures, voting results and resolution contents of the meeting conformed to laws and
regulations and Articles of Association. In addition, the Company held an election of new Board of Supervisors and elected the members
of the Eighth Board of Supervisors at the Annual General Meeting of Shareholders for 2022 Fiscal Year.
(V) Relating to Performance Appraisal and the Incentive and Restraining Mechanism
The Company established and constantly improved the performance appraisal system and the incentive restraining mechanism for
supervisors, directors and senior executives who are employed and paid by the listed company. The appointment and remuneration for
directors, supervisors and senior executives of the Company are open, clear and in line with relevant laws and regulations. During the
reporting period, the Company completed the registration of restricted stock grants related to the deferred grant part under the 2022
Restricted Stock Incentive Plan (Draft) and the registration of stock option grants related to the 2023 Stock Option Incentive Plan
(Draft), and deliberated and approved the Company's Administration Measures for the Performance Incentive Fund with a view to
providing effective incentives to senior executives.
(VI) Relating to Information Disclosure and Transparency
The Securities Department of the Company is responsible for information disclosure and investor's relationship management.
Abiding by requirements of the CSRC and Shenzhen Stock Exchange and provisions on compilation of periodic reports in good faith,
the department, in association with the Financial Department of the Company, has timely and accurately compiled and submitted the
2022 Annual Report, 2023 First Quarterly Report, 2023 Semiannual Report and 2023 Third Quarterly Report, based on the strict
compliance with the non-disclosure rules before the disclosure of the reports.
In accordance with the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange, the Securities Department of the
Company disclosed, after review and adoption by the Board of Directors or the General Meeting of Shareholders, the routine
information (board meetings and meetings of Board of Supervisors), fatal information (external investments, related transactions), and
significant events truly, accurately, completely, timely and fairly. During the reporting period, the Company issued 156 announcements
and documents and fulfilled the filing management of information disclosure documents and compliance with the non-disclosure rules
before the disclosure of the reports. In particular, the Company prepared process memorandums of important matter and management
files of insider personnel before planned and implemented important matters, which made the information disclosure timely, true,
accurate, complete and fair. There was no irregular or untimely information disclosure, and the Company has not been penalized by
regulatory authorities. Meanwhile, in accordance with the requirements of the Investor Relations Management System, the Company
standardized the investor reception procedures. Besides, after the regular report disclosure, the Company actively held online
performance briefings and investor telephone exchange meetings to fully communicate with investors. And the Record Sheet of Investor
Relations Activities was released in time after the activities to ensure that all investors have fair access to company information. In
daily work, the Company also actively received consultations by arranging personnel to answer investors' hotlines and responding to
investors' questions on the interactive platform, so as to ensure that all shareholders of the Company, small and medium-sized investors
in particular, can gain the company information equally.
During the reporting period, the Company issued the Internal Control System on Entrusted Financial Management of Zhejiang
Supor Co., Ltd. The Company will continue to sort out and update the internal control systems issued by the Company in a timely
30
2023 Annual Report of Zhejiang Supor Co., Ltd.
manner in accordance with the current laws and regulations, and will continuously establish and improve the internal control systems,
to make them work more efficiently.
Is there any major variation between the actual situation of the Company's corporate governance, and laws, administrative regulations,
and stipulations issued by the CSRC concerning the governance of listed companies?
□ Yes No
There is no major variation between the actual situation of the Company's corporate governance, and laws, administrative regulations,
and stipulations issued by the CSRC concerning the governance of listed companies.
II. Independence of the Company Relative to the Controlling Shareholders and the Actual
Controllers in Ensuring the Company's Assets, Personnel, Finance, Organization, Business, etc.
(I) Independent and complete assets structure
The Company had its production and business operation place independent from that of the controlling shareholder, and had
independent and complete assets structure, independent production system, auxiliary production system and supporting facilities, land
use right, housing ownership, as well as independent purchasing and selling systems.
(II) Independence of personnel
In terms of personnel, labor, personnel and remuneration management, the Company was completely independent. Such senior
executives as the General Manager, Vice General Manager, Board Secretary of Directors and Chief Financial Officer did not hold any
position concurrently in controlling shareholder or other subsidiaries excepting director and supervisors, nor receive any remuneration
from the controlling shareholder or other subsidiaries.
(III) Independence of finance
The Company has an independent financial department, has established independent accounting system and financial management
system, and makes financial decisions independently. It has opened independent bank accounts and pays taxes independently.
(IV) Independence of organizations
The Company has set up the organization independent from the controlling shareholder completely, and there exists no mixed
operation or management. It adopts a BU management system, and has departments directly under the Head Office and three BUs
(cookware, small domestic appliances and large kitchen appliances) and high-end business modules. Neither controlling shareholder
nor any other company or individual has intervened with the organization structuring of the Company. No "superior and subordinate
relationship" exists between the controlling shareholder and its functional departments on the one hand, and the Company and its
functional departments on the other hand.
(V) Independence of business operation from shareholders or other related parties
The Company is mainly engaged in designing, producing and selling cookware, small domestic appliances, large kitchen
appliances and H&PC products, which are not produced by the controlling shareholder or any of its subsidiaries for the Chinese market.
The Company has an independent "procurement, production and sales" system. It operates business independently from shareholders
or any other related party.
III. Horizontal Competition
□ Applicable Not applicable
31
2023 Annual Report of Zhejiang Supor Co., Ltd.
IV. General Meetings of Shareholders and Interim General Meeting of Shareholders Held
during the Reporting Period
1. General meetings of shareholders during the reporting period
Proportion
of
Session Meeting type Convening date Date of disclosure Meeting resolution
participated
investors
See Announcement on Resolutions
of the First Interim General
The First Interim Interim General Meeting of Shareholders 2023
General Meeting of Meeting of 8.55% January 19, 2023 January 20, 2023 (Announcement No.: 2023-007)
Shareholders 2023 Shareholders disclosed on
http://www.cninfo.com.cn for
details
See Announcement on Resolutions
of the Annual General Meeting of
Annual General
Annual General Shareholders for 2022 Fiscal Year
Meeting of
Meeting of 8.04% April 25, 2023 April 26, 2023 (Announcement No.: 2023-041)
Shareholders for
Shareholders disclosed on
2022 Fiscal Year
http://www.cninfo.com.cn for
details
See Announcement on Resolutions
of the Second Interim General
The Second Interim Interim General Meeting of Shareholders 2023
General Meeting of Meeting of 7.62% October 19, 2023 October 20, 2023 (Announcement No.: 2023-073)
Shareholders 2023 Shareholders disclosed on
http://www.cninfo.com.cn for
details
See Announcement on Resolutions
of the Third Interim General
The Third Interim Interim General Meeting of Shareholders 2023
General Meeting of Meeting of 7.46% November 14, 2023 November 15, 2023 (Announcement No.: 2023-085)
Shareholders 2023 Shareholders disclosed on
http://www.cninfo.com.cn for
details
2. Interim General Meeting of Shareholders held at the request of preferred shareholders with restored voting
right
□ Applicable Not applicable
V. Directors, supervisors and senior executives
1. Basic information
Number of Number
Commence shares held Quantity of Quantity of Quantity of of shares
Positio Expiry date
ment date of at the increased decreased other shares held at Reasons for the increase or
Name Gender Age Position n of term of
term of beginning shares in shares in increased or the end decrease of shares
status office
office of the this period this period reduced of the
period period
32
2023 Annual Report of Zhejiang Supor Co., Ltd.
Thierry de LA
On- January 28, April 24,
TOUR Male 69 Chairman 0 0 0 0 0 None
service 2008 2026
D'ARTAISE
Legal shareholding reduction of
On- October 25, April 24,
Su Xianze Male 56 Director 364,602 0 91,151 0 273,451 25% of the annual shareholding
service 2000 2026
quantity
Stanislas de On- January 3, April 24,
Male 59 Director 0 0 0 0 0 None
GRAMONT service 2019 2026
Nathalie Dismis November September
Female 53 Director 0 0 0 0 0 None
LOMON sal 18, 2019 28, 2023
Olivier On- November April 24,
Male 58 Director 0 0 0 0 0 None
CASANOVA service 14, 2023 2026
Delphine
On- April 22, April 24,
SEGURA Female 54 Director 0 0 0 0 0 None
service 2021 2026
VAYLET
On- April 19, April 24,
Tai Wai Chung Male 64 Director 0 0 0 0 0 None
service 2018 2026
Independent On- May 20, April 24,
Chen Jun Male 47 0 0 0 0 0 None
director service 2020 2026
Hervé Independent On- April 19, April 24,
Male 77 0 0 0 0 0 None
MACHENAUD director service 2019 2026
Jean-Michel Independent On- April 19, April 24,
Male 77 0 0 0 0 0 None
PIVETEAU director service 2019 2026
Chairman of
Philippe On- April 1, April 24,
Male 64 Board of 0 0 0 0 0 None
SUMEIRE service 2009 2026
Supervisors
On- April 20, April 16,
Zhang Junfa Male 47 Supervisor 0 0 0 0 0 None
service 2011 2026
On- March 17, April 16,
Lu Lanhua Female 46 Supervisor 0 0 0 0 0 None
service 2016 2026
Cheung Kwok General On- March 31, April 24,
Male 59 142,000 0 0 0 142,000 None
Wah Manager service 2021 2026
Reducing shareholding is the
legal shareholding reduction of
Chief
On- October 20, April 24, 25% of the annual shareholding
Xu Bo Male 56 Financial 175,303 0 43,688 58,000 189,615
service 2009 2026 quantity; Other increased or
Officer
decreased changes are granted
restricted stocks.
Reducing shareholding is the
Vice
legal shareholding reduction of
General
On- October 25, April 24, 25% of the annual shareholding
Ye Jide Male 48 Manager, 59,143 0 14,786 21,000 65,357
service 2000 2026 quantity; Other increased or
Board
decreased changes are granted
Secretary
restricted stocks.
Total -- -- -- -- -- -- 741,048 0 149,625 79,000 670,423 --
If there is any separation of directors and supervisors and dismissal of senior executives during the reporting period
Yes □ No
During the reporting period, Ms. Nathalie LOMON, a former director of the Company, applied for resigning from her position as
a director of the Eighth Board of Directors and a member of the Audit Committee due to personal reasons, who will no longer hold
any position in the Company following the resignation.
Change of Directors, Supervisors and Senior Executives
Applicable □ Not applicable
33
2023 Annual Report of Zhejiang Supor Co., Ltd.
Name Position Type Date Reason
During the reporting period, the Company
held the elections of the Eighth Board of
Directors and Board of Supervisors, and held
the 1st Session of the Eighth Board of
Directors and Board of Supervisors on April
The Eighth Board of
Directors and 26, 2023, in which the Board Chairman of the
Directors/Board of Elected April 25, 2023
Supervisors Company and the Chairman of the Board of
Supervisors
Supervisors were elected, and the senior
executives of the Company including the
General Manager, Chief Financial Officer,
and Board Secretary were appointed at the
same time.
Nathalie LOMON Director Resigned September 28, 2023 Resignation for personal reasons
Elected as a director of the Company in the
Olivier CASANOVA Director Elected November 14, 2023
Shareholders' Meeting
2. Position information
Professional backgrounds, main working experiences, and main responsibilities in the Company of present directors, supervisors and
senior executives
1. Directors
Mr. Thierry de LA TOUR D'ARTAISE: Chairman, Master of Management of Paris ESCP; Chartered Accountant; Chairman of
SEB Group; former CEO and Vice President of SEB Group, Chairman of CALOR, CFO and CEO of CROISIERES PAQUET, audit
manager of Coopers & Lybrand.
Mr. Stanislas de GRAMONT: Director, graduated from ESSEC Business School (Paris); CEO of SEB Group, and former Chief
Operating Officer of SEB Group, executive management positions at Danone and CEO of Suntory Beverage & Food Europe.
Mr. Olivier CASANOVA: Director, graduated from HEC Paris. Chief Financial Officer of SEB S.A.. He formerly served as
Deputy CFO of CMA CGM, CEO of CMA CGM Air Cargo and CFO of CEVA Logistics, CFO of Tereos, Head of Financing &
Treasury and Corporate Finance for PSA Peugeot Citron, and Head of Group Strategy, Marketing and M&A for Thomson, etc..
Ms. Delphine SEGURA VAYLET: Director of the Company, holds Master degree in International Labor Law of University Paris
1 Panthéon Sorbonne; Senior Executive Vice President of Human Resources of SEB Group, and held various executive management
positions at TOTAL Group as Vice-President of Group Human Resources and Zodiac Aerospace as Group Human Resources Director
and COMEX member and STMicroelectronics as Group Human Resources Director at Digital Consumer Division.
Mr. Su Xianze: Director, CEIBS EMBA, Senior Economist; Chairman and General Manager of Supor Group Co., Ltd., Chairman
of Taizhou Supor Real Estate Development Co., Ltd. and Chairman of Zhejiang Supor Water Heater Co., Ltd.. He has severed as
Chairman of the Company from 2001 to April 2014, and General Manager from 2001 to March 2010.
Mr. Tai Wai Chung: Director: graduated from the Industrial Engineering Major of University of Hong Kong; Executive Vice-
President of Asian Division of SEB S.A., had served as the director and general manager of Apple (Great China) Company, marketing
director of Electrolux Appliances Company, director and general manager of Shanghai SEB Electric Appliances Co., Ltd and general
manager of the Company before.
Mr. Hervé MACHENAUD: independent director, graduated from Sciences Po; President of Hong Ma Consulting Services
(Beijing) Co., Ltd.. He formerly served as Leader of EDF Group Delegation to China, Senior Executive Vice President of EDF Group,
Director in charge of EDF Generation and Engineering (DPI) and Asia-Pacific Director.
Mr. Jean-Michel PIVETEAU: independent director, doctor of business administration and master of political science. He is Senior
Consultant of CFI Financial Consultant, Chairman of the Board of Supervisors of MicroCred China, Vice-Chairman of the Board of
34
2023 Annual Report of Zhejiang Supor Co., Ltd.
Supervisors of BAOBAB, and member of the Board of Directors of French Foreign Trade Advisors. He formerly served as Adviser
for China to BNP Paribas Chairman, Senior Adviser to BNP Paribas for China, Country Head of Paribas Bank in numerous Asian
countries and Middle East countries.
Mr. Chen Jun: independent director, doctor of accounting of Xiamen University, post-doctor of business administration
(accounting) of Zhejiang University. He is now the Chairman, Professor, Doctoral Tutor of the Department of Finance and Accounting
of Zhejiang University. He is the Director of the Institute of Finance and Accounting of Zhejiang University, Deputy Director of the
Global Entrepreneurship Research Center of Zhejiang University, Director of the Research Center of Listed Companies of Zhejiang
Business Research Institute of Zhejiang University. He also serves as Vice President of Zhejiang Association of Chief Accountants
and independent director of the listing company.
2. Supervisors
Mr. Philippe SUMEIRE: Supervisor, graduated from Aix-en-Provence Law School with PHD's degree of Private Law and
Comparative Law; Vice President Legal Affairs of Groupe SEB and Board Secretary. He has worked first for PEUGEOT S.A and
ATOCHEM (chemical industry) and then held the position of General Counsel and Company Secretary for CLUB MED, GIAT
INDUSTRIES and MOULINEX S.A.
Mr. Zhang Junfa: Supervisor, graduated from Northwestern Polytechnical University; Chairman of the Trade Union of the
Company and senior manager of Administration Department of Yuhuan Site, he was working for Security Department and then worked
in Legal Affairs Department and office.
Ms. Lu Lanhua: Supervisor, graduated from Shanghai University of Finance and Economics and MBA of University of
Manchester, member of ACCA. Currently the financial director of Cookware Business Unit of the Company; she previously worked
as the Company’s Financial planning & analysis manager, worked for Greif Flexible Products& Service (China) as accounting manager,
UNSA (Hangzhou) Packaging Manufacturing Ltd. as financial manager.
3. Senior executives
Mr. Cheung Kwok Wah: General Manager of the Company, Bachelor of Economics, Chinese University of Hong Kong, MBA of
Kelly School of Business, Indiana University, former Chairman and President of the International Business Department of China Feihe
Co., Ltd., and former Chairman and CEO of NestléGreater China.
Mr. Xu Bo: Chief Financial Officer, graduated from Central University of Finance and Economics; member of CICPA and ACCA;
former Senior Auditing Manager of Shenzhen Zhonghua Certified Public Accountants, Chief Financial Officer of Yue Sai Kan
Cosmetics Limited, Chief Financial Officer of Molex Interconnect (Shanghai) Co., Ltd., Chief Financial Officer of Microsoft China.
Mr. Ye Jide: Board Secretary, Vice General Manager, and Director of Securities Department, CEIBS EMBA. He is Independent
Director of Beijing DeepZero Intelligent Technology Co., Ltd., has worked successively as the chief of equipment sector, office head
and assistant to the general manager of the Company.
Position information in shareholders' companies
Applicable □ Not applicable
Payment or
Commencement allowance
Shareholding Positions in shareholders' Expiry date of term
Name date of term of from the
company companies of office
office shareholding
company
Thierry de LA TOUR
SEB Group Chairman May 1, 2000 Yes
D'ARTAISE
Vice President Legal Affairs
Philippe SUMEIRE SEB Group of Groupe SEB and Board December 10, 2001 Yes
Secretary
Stanislas de
SEB Group CEO December 3, 2018 Yes
GRAMONT
35
2023 Annual Report of Zhejiang Supor Co., Ltd.
Olivier CASANOVA SEB Group Chief Financial Officer September 15, 2023 Yes
Delphine SEGURA Senior Executive Vice
SEB Group January 1, 2021 Yes
VAYLET President of HR
Senior Executive Vice
Tai Wai Chung SEB Group President of Asia Continental October 1, 2017 Yes
Division
Position information in other companies
Applicable □ Not applicable
Payment or
Commencement
Expiry date of term allowance
Name Name of other unit Positions in other companies date of term of
of office from other
office
companies
Chairman and General
Su Xianze Supor Group Co., Ltd. March 8, 2018 Yes
Manager
Taizhou Supor Real
Su Xianze Estate Development Chairman May 16, 2018 No
Co., Ltd.
Zhejiang Supor Water
Su Xianze Chairman November 15, 2019 No
Heater Co., Ltd.
Dean of the Department of
Finance and Accounting,
Chen Jun Zhejiang University March 1, 2019 Yes
Professor and Doctoral
Supervisor
Hangzhou EZVIZ
Chen Jun Independent director June 23, 2021 June 22, 2024 Yes
Network Co., Ltd.
Chen Jun WZ Group Independent director May 17, 2022 May 16, 2025 Yes
Hongma Consulting
Hervé
Services (Beijing) Co., President January 1, 2017 Yes
MACHENAUD
Ltd.
Beijing DeepZero
Ye Jide Intelligent Technology Independent director October 20, 2021 October 19, 2024 No
Co., Ltd.
Punishment of securities regulatory commission on directors, supervisors and senior executives of the Company at present or leaving
during the reporting period
□ Applicable Not applicable
3. Remuneration of Directors, Supervisors and Senior Executives
Decision-making procedures, determination basis of remuneration and actual payment for directors, supervisors and senior executives
Decision-making The remuneration for directors, supervisors and senior executives of the Company shall be in strict
procedures of remuneration compliance with the Rules and Procedures for the Board of Directors and the Rules and Procedures for
for directors, supervisors the Shareholders' Meeting, as well as the regulations of the Company's Articles of Association and the
and senior executives Company Law.
Remuneration basis for The directors, supervisors and senior executives of Company are paid according to their positions and
Directors, Supervisors and corresponding responsibilities and the Company's salary system, with an annual bonus based on the
Senior Executives performance evaluated.
Remuneration for Directors, Supervisors and Senior Executives during the reporting period
36
2023 Annual Report of Zhejiang Supor Co., Ltd.
Unit: RMB 10,000
Whether the
remuneration
Remuneration
is gained
receivable
Name Gender Age Position Position status from the
from the
related party
Company
of the
Company
Thierry de LA TOUR D'ARTAISE Male 69 Chairman On-service Yes
Su Xianze Male 56 Director On-service Yes
Stanislas de GRAMONT Male 59 Director On-service Yes
Nathalie LOMON Female 53 Director Resigned Yes
Olivier CASANOVA Male 58 Director On-service Yes
Delphine SEGURA VAYLET Female 54 Director On-service Yes
Tai Wai Chung Male 64 Director On-service Yes
Chen Jun Male 47 Independent director On-service 25 No
Hervé MACHENAUD Male 77 Independent director On-service 25 No
Jean-Michel PIVETEAU Male 77 Independent director On-service 25 No
Chairman of Board of
Philippe SUMEIRE Male 64 On-service Yes
Supervisors
Zhang Junfa Male 47 Supervisor On-service 42.45 No
Lu Lanhua Female 46 Supervisor On-service 98.33 No
Cheung Kwok Wah Male 59 General Manager On-service 874.17 No
Xu Bo Male 56 Chief Financial Officer On-service 318.59 No
Vice General Manager,
Ye Jide Male 48 On-service 119.03 No
Board Secretary
Total -- -- -- -- 1,527.57 --
Description of other situations
□ Applicable Not applicable
VI. Duty Performance of Directors during the Reporting Period
1. Board of Directors during the reporting period
Session Convening date Date of disclosure Meeting resolution
See Announcement of Resolutions of the 17th Session of
The 17th Session of the Seventh the Seventh Board of Directors (Announcement No.:
January 3, 2023 January 4, 2023
Board of Directors 2023-001) disclosed on http://www.cninfo.com.cn for
details
See Announcement of Resolutions of the 18th Session of
The 18th Session of the Seventh the Seventh Board of Directors (Announcement No.:
January 31, 2023 February 2, 2023
Board of Directors 2023-009) disclosed on http://www.cninfo.com.cn for
details
37
2023 Annual Report of Zhejiang Supor Co., Ltd.
See Announcement of Resolutions of the 19th Session of
The 19th
Session of the Seventh the Seventh Board of Directors (Announcement No.:
March 29, 2023 March 31, 2023
Board of Directors 2023-017) disclosed on http://www.cninfo.com.cn for
details
See Announcement of Resolutions of the 1st Session of
The 1st Session of the Eighth the Eighth Board of Directors (Announcement No.:
April 26, 2023 April 28, 2023
Board of Directors 2023-045) disclosed on http://www.cninfo.com.cn for
details
See Announcement of Resolutions of the 2nd Session of
The 2nd Session of the Eighth the Eighth Board of Directors (Announcement No.:
August 30, 2023 August 31, 2023
Board of Directors 2023-060) disclosed on http://www.cninfo.com.cn for
details
See Announcement of Resolutions of the 3rd Session of
The 3rd Session of the Eighth the Eighth Board of Directors (Announcement No.:
September 27, 2023 September 28, 2023
Board of Directors 2023-066) disclosed on http://www.cninfo.com.cn for
details
See Announcement of Resolutions of the 4th Session of
The 4th Session of the Eighth the Eighth Board of Directors (Announcement No.:
October 26, 2023 October 27, 2023
Board of Directors 2023-076) disclosed on http://www.cninfo.com.cn for
details
See Announcement of Resolutions of the 5th Session of
The 5th Session of the Eighth the Eighth Board of Directors (Announcement No.:
December 21, 2023 December 22, 2023
Board of Directors 2023-087) disclosed on http://www.cninfo.com.cn for
details
2. Attendance of board meeting and general meeting of shareholders by directors
Attendance of board meeting and general meeting of shareholders by directors
Due attendance
Presence via
of board Presence in on- Entrusted Absence on Attendance of
communication Absent for twice
meetings site board presence in board general
Name of directors on board continuously on
during the meetings board meetings meetings meeting of
meetings board meetings?
reporting (times) (times) (times) shareholders
(times)
period (times)
Thierry de LA TOUR D'ARTAISE 8 1 7 0 0 No 0
Stanislas de GRAMONT 8 2 6 0 0 No 0
Nathalie LOMON 6 2 4 0 0 No 0
Olivier CASANOVA 1 0 1 0 0 No 0
Delphine SEGURA VAYLET 8 2 6 0 0 No 0
Su Xianze 8 2 6 0 0 No 1
Tai Wai Chung 8 2 6 0 0 No 0
Hervé MACHENAUD 8 2 6 0 0 No 0
Jean-Michel PIVETEAU 8 2 6 0 0 No 0
Chen Jun 8 1 7 0 0 No 4
Explanation on absence for twice continuously
None
38
2023 Annual Report of Zhejiang Supor Co., Ltd.
3. Objections by directors to company issue
Were there any objections raised by directors to company issues?
□ Yes No
There was no objection raised by any director to company issues during the reporting period.
4. Other explanations of duty performance of directors
Was there any advice raised by directors to company issues adopted by the Company?
Yes □ No
Explanation on adoption or non-adoption of the advice from directors
During the reporting period, all directors of the Company were responsible and diligent. They paid close attention to the reports
about Company news by press and on the Internet and understood progress of the Company's important matters timely. They reviewed
the information reports provided by the Company periodically, and gave relevant comments and advices. They exerted their specialties
fully, performed the duties as directors actively and maintained the legitimate rights and interests of the Company and minority
shareholders.
VII. Situation of Special Committees under the Board of Directors during the Reporting Period
Other
circumsta
Specific
nces
circumstances
Name of the Convening Important opinions and relating to
Members Meeting times Content of the meeting of disputed
Committee date suggestions put forward the
matters (if
performan
any)
ce of
duties
The Compensation Committee
reviewed and discussed
1. Summary of the employment
situation of the Company in
2022;
2. Annual labor cost and
The Compensation
remuneration of senior
Committee agreed to the
executives and employee
proposal and recognized the
March 29, supervisors in 2022;
Hervé Company's efforts in None None
2023 3. Remuneration adjustment
MACHENAUD, employment management,
policy in 2023
Compensation Jean-Michel organizational talent strategy
4. Implementation of Restricted
and Appraisal PIVETEAU, 3 and remuneration strategy.
Stock Incentive Plan;
Committee Delphine
5. Performance of corporate
SEGURA
social responsibilities;
VAYLET
6. Organization development
and position information of core
executives.
The Compensation Committee The Compensation
reviewed and discussed Committee agreed to the
August 30, 1. Employment situation of the proposal and recognized the
None None
2023 Company in the first six months Company's efforts in
of 2023; employment management,
2. Labor costs in the first six organizational talent strategy
39
2023 Annual Report of Zhejiang Supor Co., Ltd.
months of 2023; and performance of the
3. Actual remuneration corporate social
adjustment in 2023; responsibility.
4. Long-term incentive plan of
2023;
5. Performance of corporate
social responsibilities;
6. Organization development
and position information of core
executives.
The Compensation Committee
reviewed and discussed
1. 2023 Stock Option Incentive
Plan (Draft) and Its Abstract;
2. Assessment Measures for the The Compensation
September 26,
Implementation of the 2023 Committee agreed to the None None
2023
Stock Option Incentive Plan; proposal.
3. Measures for the
Management of the
Performance Incentive Fund in
2023
1. The Audit Committee
approved the 2023 audit plan
(focusing on the sales
allowance and market costs)
The Audit Committee reviewed and the 2023 key follow-up
and discussed project plan.
1. External audit opinions; 2. The Audit Committee
2. Key data of the 2022 financial advised to strengthen
statement; corresponding internal
3. 2022 internal control control procedures based on
achievement, and 2023 internal the findings on the matters
March 29, control plan; reported by supervision.
None None
2023 4. Performance of internal audit 3. The Audit Committee
projects in 2022, and 2023 audit reviewed and discussed the
plan and key audit findings qualifications of the external
rectification and follow-up plan; auditor and proposed the
Chen Jun, Jean- 5. Main conclusions of external Board of Directors to review
Michel audit; and approve KPMG as the
Audit
PIVETEAU, 4 6. Matters of audit organization audit service provider of the
Committee
Nathalie renewal in 2023. Company in 2023.
LOMON 4. The Audit Committee
advised to evaluate the need
of audit on overseas bases of
Supor.
The Audit Committee reviewed
and discussed
1. Progress of internal control
projects in 2023;
2. Progress of the
June 30, 2023 None None
implementation of internal audit
projects and rectification of key
audit findings in 2023;
3. Results of external audit and
review
The Audit Committee reviewed 1. The Audit Committee
August 30,
and discussed advised to strengthen the None None
2023
1. External audit opinions; quantitative impact analysis
40
2023 Annual Report of Zhejiang Supor Co., Ltd.
2. Key data in the semiannual of audit findings in internal
financial statement of 2023; audit projects.
3. Progress of internal control 2. The Audit Committee
projects in 2023; advised to strengthen and
4. Progress of the formalize the communication
implementation of internal audit process between internal
projects and rectification of key auditors and external auditors
audit findings in 2023; regarding high-risk internal
5. Progress of external audit; audit findings and required
6. The Audit Committee that external auditors shall
consulted external auditors to evaluate the impact of high-
learn about the communication risk internal audit findings on
with external regulatory audit opinions and
agencies. appropriately record and
report it to the management of
the Company.
The Audit Committee reviewed
and discussed
1. Progress of internal control
Chen Jun, Jean-
projects in 2023;
Michel
December 21, 2. Progress of the
PIVETEAU, None None
2023 implementation of internal audit
Olivier
projects and rectification of key
CASANOVA
audit findings in 2023;
3. Results of external audit and
review
VIII. Work of the Board of Supervisors
During the reporting period, did the Board of Supervisors find any risk about the Company?
□ Yes No
The Board of Supervisors held no objection to the issues supervised during the reporting period.
IX. Employees of the Company
1. Number of Employees, professional and education conditions
Number of in-service employees of the parent company at the end
1,850
of the reporting period (persons)
Number of in-service employees of the main subsidiaries at the end
8,903
of the reporting period (persons)
Total number of in-service employees at the end of the reporting
10,753
period (persons)
Total number of employees paid during current period (person) 10,753
Retired employees for whom the parent company and major
16
subsidiaries should cover expenses (person)
Profession composition
Job description Quantity (person)
Production personnel 6,305
Sales personnel 1,516
41
2023 Annual Report of Zhejiang Supor Co., Ltd.
Technician 1,936
Financial personnel 183
Administrative personnel 813
Total 10,753
Education
Education category Quantity (person)
Postgraduate and above 177
Junior college or university 3,628
Technical secondary school or high school 3,219
Others 3,729
Total 10,753
2. Remuneration policy
The Company adopts floating salary system for all employees. Salary that we provide to employees includes pre-tax basic salary,
performance salary and various incentive bonuses in the form of currency; we also offer various non-monetary welfares such as
commercial insurance, internal and external training, internal development and comfortable working environment.
We provide employees with competitive salary and welfare to keep a certain degree of competitiveness and absorb talents; while
in the Company, to stabilize those key employees, embody the Company's value orientation, motivate self-improvement of employee
and create high performance.
3. Training plan
1) Training system:
Guided by strategic planning and business development needs, Supor relies on employees' career development and professional
ability improvement to carry out training on professional and technical sequences and management sequences. According to the
planning of talent development strategy and coordinating with talent echelon construction, the Company designs learning projects
systematically and at different levels.
Training type Training hours Actual Number of Trainees Average (H)
Online trainings in 2023 38,762 3,436 11.28
Offline trainings in 2023 258,203 9,907 26.06
The detailed offline training data in 2023 are as follows:
Position level Training hours (H)
Senior management 2,755.40
Middle level 14,152.50
General employees 83,728.40
Front-line employees 157,566.35
Total training hours 258,202.65
42
2023 Annual Report of Zhejiang Supor Co., Ltd.
Type Actual Number of Trainees
Number of male employees trained 6,304
Number of female employees trained 3,603
Total number of participants 9,907
2) Various forms
Supor lays emphasis on the innovation of employee training. In order to promote the training experience and leaning conversion
rate, the Company facilitates learning in multiple perspectives through diverse forms involved online learning, live streaming, offline
learning, project workshops, internal and external thematic exchange sessions, and cross-fields visits.
3) Internal inheritance
According to the planning of talent development strategy and coordinating with talent echelon construction, the Company
irregularly organizes professional personnel in relevant fields to extract knowledge, develop courses and impart their organizational
and personal experience. We also provide instructor and tutor resources which are mainly from internal managers to employees to
improve the competence and speed up the growth of employees and practice our talent building and development policies.
4. Labor outsourcing
Applicable □ Not applicable
Total hours of labor outsourcing (Hours) 11,819,387.44
Total remuneration paid for labor outsourcing (RMB) 261,022,753.72
X. Profit distribution and conversion from capital reserves to share capital
Formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies during the reporting period
Applicable □ Not applicable
During the reporting period, the Company implemented the profit distribution plan in strict accordance with the Articles of
Association and other relevant provisions, where the dividend distribution standard and proportion were clear and definite and the
relevant decision-making procedures and mechanisms were complete. The Company held the 19 th Session of the Seventh Board of
Directors and the 18th Session of the Seventh Board of Supervisors on March 29, 2023, and held the Annual General Meeting of
Shareholders for 2022 Fiscal Year on April 25, 2023, which deliberated and approved the Proposal on Profit Distribution Plan 2022.
The Company's Profit Distribution Plan 2022 is: based on the 805,116,907 shares (total capital stock of 808,654,476 shares at the end
of 2022 deducted by 3,537,569 shares of repurchased shares in the Company’s special stock repurchase account, the Company have
canceled 1,870,069 shares in the special stock repurchase account on April 10, 2023, the latest total capital stock of the Company is
806,784,407 shares and the latest number of shares in the special stock repurchase account is 1,667,500 shares), the Company will
distribute all shareholders cash dividends of RMB 30.30 per 10 shares (tax included), and total amount of cash dividends is RMB
2,439,504,228.21. The Company will issue 0 bonus shares (tax included) and not convert capital reserves to capital. On May 26, 2023,
the profit distribution plan of the Company for 2022 Fiscal Year was completed.
Special description of cash dividend policy
Whether it meets the requirements in Articles of Associations or resolutions of the Shareholders' Meeting: Yes
Whether the dividend standard and proportion are definite and clear: Yes
43
2023 Annual Report of Zhejiang Supor Co., Ltd.
Whether the relevant decision procedure and mechanism are complete: Yes
Whether the independent director performs obligations and plays roles: Yes
If without distribution of cash dividends, the Company shall disclose the specific reasons of non-
Yes
distribution, as well as the subsequent measures to be taken to enhance investor returns:
Whether the minority shareholders have opportunity in giving opinions and claims, and whether the legal
Yes
interests of minority shareholders are protected sufficiently:
Where the cash dividend policy is adjusted or changed, and whether the conditions and procedures are
Yes
compliant and transparent:
Information on profit-making during the reporting period and positive undistributed profit of parent company for shareholders but
without cash dividend distribution plan
□ Applicable Not applicable
Profit distribution and conversion from capital reserves to share capital during the reporting period
Applicable □ Not applicable
Number of bonus stock per 10 shares (shares) 0
Amount of dividend (RMB) per 10 shares (tax-inclusive) 27.30
Equity base in distribution plan (shares) 796,891,157
Amount of cash dividends (tax-inclusive) 2,175,512,858.61
Amount of cash dividends realized in other modes (e.g. repurchased shares) (RMB) 480,065,768.74
Total cash dividends (including other modes) (RMB) 2,655,578,627.35
Distributable profits (RMB) 3,782,559,441.04
Proportion of total cash dividends (including other modes) in total distribution of profits 100%
Cash Dividends of This Time
Others
Detailed information on profit distribution and conversion of capital reserve to capital pre-proposal
In accordance with the standard unqualified audit report provided by KPMG Certified Public Accountants (Special General
Partnership), the parent company of Zhejiang Supor Co., Ltd. realized the net profits of RMB 1,979,653,497.56 in 2023, and could
distribute profits of RMB 3,782,559,441.04 to shareholders at the end of the year based on relevant provisions of Company Law and
the Articles of Association, after allocating RMB 85,151,939.97 as legal surplus reserve (note: the accumulated amount of legal surplus
reserve reached 50% of total capital stock), plus the undistributed profit of RMB 4,331,212,701.66 at the beginning of this reporting
period, deducting the annual cash dividends for 2022 fiscal year of RMB 2,439,504,228.21 distributed on May 26, 2023, and decreased
distributable profit RMB 3,650,590.00 due to the grant of Restricted Stocks on February 24, 2023 with respect to2022 Restricted
Stock Incentive Plan.
The profit distribution plan is detailed as follows: based on the 796,891,157shares at the end of 2023 (total capital stock of 806,708,657
shares at the end of 2023 deducted by 9,817,500 shares of repurchased shares in the Company’s special stock repurchase account),
the Company will distribute all shareholders cash dividends of RMB 27.30 per 10 shares (tax included), and total amount of cash
dividends is RMB 2,175,512,858.61. The Company will issue 0 bonus shares (tax included) and not convert capital reserves to capital.
During the period from the disclosure of this profit distribution preplan to the actual implementation date, if the Company’s capital
stock changes due to conversion of convertible bonds into stocks, share repurchases, equity incentive exercise, and refinancing and
new share listing, it will be executed based on the changed capital stock, and the above distribution ratio remains unchanged.
XI. Implementation of Company's Equity Incentive Plan, Employee Equity Holding Plan or
Other Employee Incentive Measures
Applicable □ Not applicable
44
2023 Annual Report of Zhejiang Supor Co., Ltd.
1. Equity incentive
(I) 2021 Equity Incentive Plan
1. The 14th Session of the Seventh Board of Directors and the 13th Session of the Seventh Board of Supervisors of the Company held
on August 30, 2022 deliberated and approved the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For
disqualification of 13 incentive objects due to their resignation, the Company decided to repurchase and cancel 53,000 shares of
restricted stock. In addition, the 19th Session of the Seventh Board of Directors and the 18th Session of the Seventh Board of Supervisors
of the Company held on March 29, 2023 deliberated and approved the Proposal on Repurchasing and Canceling a Part of Restricted
Stock. For the disqualification of 4 incentive objects due to their resignation, the Company decided to repurchase and cancel 21,000
shares of restricted stock. The Proposal on Repurchasing and Canceling a Part of Restricted Stock has been adopted by the Annual
General Meeting of Shareholders for 2022 Fiscal Year held on April 25, 2023. The Company has repurchased and canceled 74,000
shares of restricted stocks in 2021 Equity Incentive Plan at the price of RMB 1 per share and paid totally RMB 74,000 to the above
resigned incentive objects. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited,
the Company completed repurchase and cancellation on June 29, 2023.
For details, please refer to the Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of
Completion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times, China Securities Journal, Securities
Daily, and http://www.cninfo.com.cn on August 31, 2022, March 31, 2023, and June 30, 2023 (Announcement No.: 2022-050, 2023-
026, and 2023-052).
2. The 2nd Session of the Eighth Board of Directors and the 2 nd Session of the Eighth Board of Supervisors of the Company held on
August 30, 2023 deliberated and approved the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the
disqualification of 2 incentive objects due to their resignation, the Company decided to repurchase and cancel 2,000 shares of restricted
stock. Above repurchase and cancelation of Restricted Stocks shall be submitted to the General Meeting of Shareholders for approval.
For details, please refer to the Announcement of Repurchasing and Canceling a Part of Restricted Stock disclosed on Securities
Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on August 31, 2023 (Announcement No.: 2023-063).
3. The 6th Session of the Eighth Board of Directors and the 6th Session of the Eighth Board of Supervisors of the Company held on
January 26, 2024 deliberated and approved the Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2021
Restricted Stock Incentive Plan, agreeing to unlock the Restricted Stock for 270 qualified Incentive Objects in the first unlock period.
The number of Restricted Stock unlocked is 555,750 shares, and the restricted stocks in the first unlock period had been listed and
circulated on February 2, 2024.
For details, please refer to the Announcement of Unlocking of Restricted Stock within the First Unlock Period of 2021 Restricted
Stock Incentive Plan and the Suggestive Announcement on Listing of Restricted Stock Unlockable during the First Unlock Period of
2021 Restricted Stock Incentive Plan disclosed on Securities Times, China Securities Journal, Securities Daily, and
http://www.cninfo.com.cn on January 27, 2024 and January 31, 2024 (Announcement No.: 2024-005, 2024-007).
(II) 2022 Equity Incentive Plan
1. The 18th Session of the Seventh Board of Directors and the 17th Session of the Seventh Board of Supervisors held on January 31,
2023 deliberated and approved the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects. The Company
plans to grant 79,000 shares of postponed portion of restricted stocks to 2 incentive objects. The Company completed the registration
of restricted stock grants on February 24, 2023.
For details, please refer to the Announcement of Grant of Postponed Portion of Restricted Stock to Incentive Objects and the
Announcement of Completion of Registration for Grant of Postponed Portion of Restricted Stock of 2022 disclosed on Securities Times,
China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on February 2, 2023 and February 27, 2023 (Announcement
No.: 2023-011, 2023-015).
45
2023 Annual Report of Zhejiang Supor Co., Ltd.
2. The 19th Session of the Seventh Board of Directors and the 18th Session of the Seventh Board of Supervisors of the Company held
on March 29, 2023 deliberated and approved the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the
disqualification of 2 incentive objects due to their resignation, the Company decided to repurchase and cancel 1,750 shares of restricted
stock. The Proposal on Repurchasing and Canceling a Part of Restricted Stock has been adopted by the Annual General Meeting of
Shareholders for 2022 Fiscal Year held on April 25, 2023. The Company repurchased and canceled 1,750 shares of restricted stock of
2022 Equity Incentive Plan at the price of RMB 1 per share and paid totally RMB 1,750 to above resigned incentive objects. After
confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completed repurchase
and cancellation on June 29, 2023.
For details, please refer to the Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of
Completion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times, China Securities Journal, Securities
Daily, and http://www.cninfo.com.cn on March 31, 2023, and June 30, 2023 (Announcement No.: 2023-026, 2023-052).
3. The 2nd Session of the Eighth Board of Directors and the 2 nd Session of the Eighth Board of Supervisors of the Company held on
August 30, 2023 deliberated and approved the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the
disqualification of 3 incentive objects due to their resignation, the Company decided to repurchase and cancel 3,250 shares of restricted
stock. Above repurchase and cancelation of Restricted Stocks shall be submitted to the General Meeting of Shareholders for approval.
For details, please refer to the Announcement of Repurchasing and Canceling a Part of Restricted Stock disclosed on Securities
Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on August 31, 2023 (Announcement No.: 2023-063).
(III) 2023 Equity Incentive Plan
1. The 3rd Session of the Eighth Board of Directors and the 3rd Session of the Eighth Board of Supervisors of the Company held on
September 27, 2023 reviewed and adopted the Proposal on 2023 Stock Option Incentive Plan (Draft) and its Abstract. The Board of
Supervisors of the Company conducted preliminary verification on the list of incentive objects.
For details, please refer to the 2023 Stock Option Incentive Plan (Draft) and its Abstract of Zhejiang Supor Co., Ltd. disclosed on
Cninfo (http://www.cninfo.com.cn) on September 28, 2023.
2. On October 14, 2023, the Company disclosed the Verification Opinions on List of Incentive Objects for 2023 Stock Option Incentive
Plan. The Board of Supervisors has verified the Incentive Objects of 2023 Stock Option Incentive Plan and concluded that the
subjective qualifications of the Incentive Objects involved in this plan are legal and valid.
For details, please refer to the Verification Opinions on List of Incentive Objects for 2023 Stock Option Incentive Plan disclosed
on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on October 14, 2023 (Announcement
No.: 2023-072).
3. The Second Interim General Meeting of Shareholders 2023 convened by the Company on October 19, 2023 deliberated and approved
the Proposal on 2023 Stock Option Incentive Plan (Draft) and its Abstracts, the Proposal on Assessment Measures for the
Implementation of the 2023 Stock Option Incentive Plan, and the Proposal on Requesting the General Meeting of Shareholders to
Authorize the Board of Directors to Deal with Issues Related to the Company's 2023 Stock Option Incentive Plan.
For details, please refer to the Announcement on Resolutions of the Second Interim General Meeting of Shareholders 2023
disclosed on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on October 20, 2023
(Announcement No.: 2023-073).
4. On October 20, 2023, the Company disclosed the Self-verification on Buying or Selling the Company's Shares by Insiders and
Incentive Objects of 2023 Stock Option Incentive Plan. The Company’s insiders did not trade the Company’s shares or involved in
insider trading during the process of planning. In addition, the Company’s insiders and Incentive Objects did not trade the Company’s
shares or involved in insider trading within six months before the publication of the Incentive Plan..
46
2023 Annual Report of Zhejiang Supor Co., Ltd.
For details, please refer to the Self-verification on Buying or Selling the Company's Shares by Insiders and Incentive Objects of
2023 Stock Option Incentive Plan disclosed on Securities Times, China Securities Journal, Securities Daily, and
http://www.cninfo.com.cn on October 20, 2023 (Announcement No.: 2023-074).
5. On October 26, 2023, the 4th Session of the Eighth Board of Directors and the 4th Session of the Eighth Board of Supervisors of the
Company deliberated and approved the Proposal on Grant of Stock Option to Incentive Objects. The Company planned to grant
1,075,000 Stock Options to totally 53 Incentive Objects. The Company completed the registration of stock option on November 7,
2023.
For details, please refer to the Announcement of Grant of Stock Option to Incentive Objects and the Announcement of Completion
of Registration for Grant of Restricted Stock of 2023 disclosed on Securities Times, China Securities Journal, Securities Daily, and
http://www.cninfo.com.cn on October 27, 2023 and November 8, 2023 (Announcement No.: 2023-079, 2023-084).
Equity incentives received by the Company's directors and senior executives
Applicable □ Not applicable
Unit: share
Exercise
Number
Shares Shares price of Market Restricted
Number of newly- Number Restricted Granting
which can which exercised price at stock Restricted
of stock granted of stock stock held Shares price of
be have been shares the end of newly stock held
options stock options at the unlocked restricted
Name Position exercised exercised during the reporting granted at the end
held at the options held at the beginning in current stock
during the during the reporting period during the of the
end of the during the end of the of the period (RMB/sha
reporting reporting period (RMB/sha reporting period
year reporting period period re)
period period (RMB/sha re) period
period
re)
Cheung
General
Kwok 0 96,000 0 0 0 96,000 53.01 142,000 0 0 1 142,000
Manager
Wah
Chief
Xu Bo Financial 0 68,000 0 0 0 68,000 53.01 45,000 0 58,000 1 103,000
Officer
Vice
General
Ye Jide Manager, 0 25,000 0 0 0 25,000 53.01 20,000 0 21,000 1 41,000
Board
Secretary
Total -- 0 189,000 0 0 -- 189,000 -- 207,000 0 79,000 -- 286,000
Mr. Cheung Kwok Wah, the General Manager, was granted 60,000 and 82,000 restricted stocks of the 2021 and 2022 Equity Incentive
Plans, respectively, for a total of 142,000 shares. Amongst others, 30,000 unlockable restricted stocks in the first unlock period of the
2021 Equity Incentive Plan had been listed and circulated on February 2, 2024. In addition, 96,000 stock options under the 2023 Equity
Incentive Plan were granted to Mr. Cheung Kwok Wah.
Mr. Xu Bo, the Chief Financial Officer, was granted 45,000 and 58,000 restricted stocks of the 2021 and 2022 Equity Incentive Plans,
respectively, for a total of 103,000 shares. Amongst others, 22,500 unlockable restricted stocks in the first unlock period of the 2021
Equity Incentive Plan had been listed and circulated on February 2, 2024, and the restricted stocks granted under the 2022 Equity Incentive
Remarks (if any)
Plan had been registered on February 24, 2023. In addition, 68,000 stock options under the 2023 Equity Incentive Plan were granted to
Mr. Xu Bo.
Mr. Ye Jide, the Vice General Manager and Board Secretary, was granted 20,000 and 21,000 restricted stocks of the 2021 and 2022 Equity
Incentive Plans, respectively, for a total of 41,000 shares. Amongst others, 10,000 unlockable restricted stocks in the first unlock period
of the 2021 Equity Incentive Plan had been listed and circulated on February 2, 2024, and the restricted stocks granted under the 2022
Equity Incentive Plan had been registered on February 24, 2023. In addition, 25,000 stock options under the 2023 Equity Incentive Plan
were granted to Mr. Ye Jide.
Evaluation mechanism and incentive of senior executives
47
2023 Annual Report of Zhejiang Supor Co., Ltd.
The Company has established a perfect performance appraisal system and salary system for senior executives, which directly
connects the work performance of senior executives with their salary. Based on the indicators of the KPI system established at the
beginning of 2023, the Company has conducted the year-end appraisal in January 2024 of senior executives of their working abilities,
duty performance and target fulfillment, meanwhile, distributed annual performance salary. During the reporting period, the Company
implemented the 2023 Stock Option Incentive Plan (Draft), and deliberated and approved the Administratiom Measures for the
Performance Incentive Fund, with a view to achieving effective motivation of the senior executives. Besides, the Company held the
6th Session of the Eighth Board of Directors on January 26, 2024, and agreed to unlock restricted stocks granted to the senior executives
that are unlockable in the first unlock period in accordance with the 2021 Restricted Stock Incentive Plan (Draft). The Compensation
and Appraisal Committee of the Board of Directors, as the special committee under the Board of Directors, reviewed the appraisal
result.
2. Implementation of the employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentive measures
□ Applicable Not applicable
XII. Development and Implementation of Internal Control Systems during the Reporting
Period
1. Development and implementation of internal controls
In accordance with the requirements of the Basic Standards for Internal Control of Enterprises, its supporting guidelines, as well
as other requirements for internal control supervision and based on the principles of comprehensiveness, significance, balance,
adaptability and cost-effectiveness, the Company establishes and improves the internal control system implemented by the Board of
Directors, Board of Supervisors, managers and all employees to achieve the Company's strategic development goals, with a view to
reasonably ensuring the legal compliance of the Company's operation and management, asset security, and authenticity and integrity
of financial statements and related information, and to improving business efficiency and effectiveness.
1. Control environment
(1) Governance structure
In accordance with the provisions of national laws and regulations, resolutions of the Board of Shareholders, and the Articles of
Association, the Company defines the duties and authorities, rules of procedure, and working procedures of the Board of Shareholders,
Board of Directors, Board of Supervisors and managers, so as to form a governance mechanism for the separation of decision-making,
implementation, and supervision. The Board of Directors is accountable for the Board of Shareholders, and exercises the business
decision-making power of the Company according to law, and shall be accountable for the establishment, improvement and effective
implementation of internal control. The special committees pertaining to strategy, audit and remuneration set up under the Board of
Directors provide support for scientific decision-making, in which the Audit Committee is responsible for reviewing and supervising
the effective implementation of internal controls and the self-evaluation on internal controls. The Board of Supervisors is accountable
for the Board of Shareholders and supervises the Board of Directors and senior executives of the Company to perform their duties
48
2023 Annual Report of Zhejiang Supor Co., Ltd.
according to law. The senior management composed of the President and the Chief Financial Officer are accountable for the Board of
Directors, and take charge of the daily operation and management activities of the Company.
(2) Organizational structure and division of authorities and responsibilities
In view of the business characteristics and internal control requirements, the Company reasonably sets up internal organizations
at all levels, such as the functional departments of the headquarters, business departments, production bases, marketing centers and
other internal institutions, and defines the division of authorities and responsibilities in the organization structure chart, job descriptions,
business flow charts, authorization system documents and other internal management documents, so as to form a working mechanism
that allows performance of corresponding duties with mutual restriction and coordination.
(3) Internal audit
The Company has set up an audit department, which reports to the Audit Committee of the Board of Directors. The audit
department evaluates the level of internal control and the efficiency of process control and organization by means of internal audit,
internal control consultation and organizational risk assessment, and timely reports to the management and the Audit Committee for
the internal control defects and potential risks detected in the process of supervision and inspection, and promotes relevant departments
to formulate action plans and follow up the corresponding rectification performance to ensure the effective implementation of internal
controls.
(4) Human resource policies
In accordance with the development strategy, current situation of human resources, and future demand forecast, the Company
formulates and implements human resources policies conducive to the sustainable development of the Company. The Personnel
Management System, Recruitment Management System, Remuneration Management System, Training Management System,
Attendance Management System, and Employee Manual formulated by the Company clearly define the principles and processes for the
employees in aspects of selection and appointment, dimission and transfer, remuneration assessment, training, rewards and punishments,
labor disciplines, information confidentiality, etc.
(5) Enterprise culture
The Company adheres to the enterprise spirit of "With Pressure, Face Pressure, Overcome pressure", sets up the enterprise style
of "Patriotism, Integrity, Modesty, Pragmatism, Innovation and Transcendence, and devotes to improving the living quality of
thousands upon thousands of families in their kitchens and homes, so that "Where there is a home, there is Supor" can become the
consensus of more and more consumers. Through the establishment of a series of internal norms such as the Basic Law of Supor, the
Code of Professional Ethics of Employees and the Rules for Anti-fault the Company integrates the efficient and pragmatic corporate
culture into all aspects of daily production and operating activities, and enhances the employees' sense of responsibility and sense of
mission, normalizes employee behaviors, enhances corporate cohesion and coagulation, and constantly improves the overall image of
the Company.
2. Risk assessment
According to the established control objectives and the characteristics of business development in different stages, the Company
introduces different forms of measures, such as risk self-assessment, anti-corruption questionnaire, risk mapping, and tax risk matrix,
to carry out comprehensive, systematic and continuous collection of relevant information, with the method combining both quantitative
and qualitative measures, in order to timely identify and systematically analyze the internal risks in the production and operating
processes in terms of human resources, management, innovation, finance, assets, health, safety, environmental protection, data
49
2023 Annual Report of Zhejiang Supor Co., Ltd.
confidentiality, business loss, and continuing operation, and the external risks in the production and operating processes in terms of
politics, economy, law, taxation, science and technology, natural environment, social environment, etc., and to determine the risk
response strategy that matches the Company's risk bearing capacity and take appropriate control measures to achieve effective risk
control, on the basis of weighing the principle of cost-benefit.
3. Control activity
In the course of daily operation, the Company continuously establishes and improves various management systems, covering
financial accounting, internal control, human resources, material procurement, inventory management, asset management,
technological R&D, production process, quality control, product sales, health, safety and environment, comprehensive management,
etc., to ensure the compliance of all work aspects. Under the various institutional frameworks, the Company reasonably ensures the
realization of business objectives through the implementation of key control measures and procedures.
Key controls must include: separated control for incompatible posts, approval control for authorization, accounting system control,
property protection and control, budget control, operational analysis control, performance assessment control and other controls.
(1) Approval control for authorization: the Company defines the scope, authority, procedure, responsibility and other relevant
aspects of authorization and approval, and the management staff at all levels of the Company must exercise the corresponding functions
and powers within the scope of authorization, and the handling personnel must also handle economic transactions within the scope of
authorization and bear corresponding liabilities.
(2) Separated control for incompatible posts: the Company sets up a reasonable division of labor, scientifically divides
responsibilities and powers, and formulates the System of Separation of Responsibilities and Powers in accordance with the principle
of separation of incompatible duties, so as to form a mechanism of mutual checks and balances. Incompatible duties mainly include:
feasibility study and decision approval, decision approval and implementation, implementation and supervision & inspection.
(3) Accounting system control: in strict accordance with the provisions of the Accounting Standards for Business Enterprises, the
Company formulates the financial policies and processes such as the Accounting Preconditions and Basic Principles, Accounting
System of Accounting Subjects, Revenue Recognition System, Consolidated Statement System, and Account Settlement Process, clearly
defines the handling procedures for accounting vouchers, accounting books and financial statements, so as to ensure the authenticity
and integrity of accounting data.
(4) Property protection and control: the Company strictly restricts unauthorized personnel from accessing and disposing assets,
and adopts measures such as regular stocktaking, asset records, account verification, and property insurance, to ensure the safety of all
kinds of assets in accordance with the requirements of the Inventory Taking and Regulation System, and Fixed Assets Management
System formulated by the Company.
(5) Budget control: the Company implements comprehensive budget management in accordance with the Budget System, and the
responsible departments at all levels prepare their budgets in accordance with their responsibilities and powers, and regularly follow
up the implementation of their budgets after being reviewed and approved by the management.
(6) Operational analysis control: the Company has established a regular operation analysis mechanism, with which the
management can utilize the data and information acquired in the production, procurement, sales, finance and other systems to
comprehensively analyze and evaluate the Company's operating risks and market situations, timely detect any problems, identify the
causes and formulate effective rectification plans for improvement.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
(7) Performance assessment control: according to the requirements of the Company's Remuneration Management System, the
Company's organizations at all levels have established and implemented a comprehensive and systematic performance assessment
system, to scientifically set up performance assessment indicators of various individuals/groups, regularly organize assessment and
objective evaluation, and take the assessment results as the basis for employee remuneration adjustment, job promotion, reward and
punishment, post transfer, dismissal, etc.
4. Information and communication
According to the requirements of development strategy, risk control and performance assessment, the Company has established
different levels of internal reporting indicator systems, in order to enable the management at all levels to timely and comprehensively
access all kinds of internal and external information pertaining to production and management and promptly formulate business
principles and policies adaptive to business and environmental changes. The internal reporting systems make full use of information
technology to build a scientific internal reporting network based on reliable information systems such as SAP, BI, CRM, consolidated
statements, and management statements.
The Company has established a special anti-fraud mechanism, clearly defined the key areas and key links of anti-fraud efforts and
the anti-fraud responsibilities and powers of relevant departments, and set up the solely-designated supervision channel to standardize
the whistleblowing, investigation, handling, reporting and follow-up processes of fraud cases. Besides, through e-mail, official website,
WeChat official account, contracts, training, meetings and other forms of measures, the Company publicizes the anti-fraud policies and
supervision channels to employees, suppliers, distributors and other stakeholders from time to time, so as to form an anti-fraud
atmosphere which emphasizes on prevention and combines both punishment and prevention.
5. Supervision on control
The Company has established an internal control and supervision mechanism, with which the independent directors and the Board
of Supervisors can fully and independently perform supervisory duties for the management of the Company, and carry out independent
evaluation and provide independent suggestions. The Company has formulated the Internal Audit System, and the special internal audit
department under the leadership of the Audit Committee of the Board of Directors can independently carry out internal audit, implement
effective supervision over the management and promote the effective implementation of internal controls. In the light of the situation
of internal supervision, the Company regularly carries out self-evaluation on the effectiveness of internal controls and issues Self-
Evaluation Report on Internal Control System.
2. Significant internal control defects of internal control found during the reporting period
□ Yes No
XIII. Company's Management and Control of Subsidiaries during the Reporting Period
The headquarters of listed companies effectively monitors the subsidiaries through the following measures:
(1) Delegate and appoint senior executives of subordinate subsidiaries at the beginning of each year, and clearly define their terms of
reference and report objects.
(2) Supervise subordinate subsidiaries to formulate detailed management processes and risk control procedures for various business
sectors and functional areas under the principle frameworks of management systems of the headquarters and business divisions.
51
2023 Annual Report of Zhejiang Supor Co., Ltd.
(3) Convene a monthly operating and financial meeting to review and follow up the implementation of the subsidiaries' business plans
and the completion of various performance evaluation indicators in a timely manner, in accordance with the Company's development
and business objectives specified in the annual budget planning meeting. Besides, various functional committees, such as product
committee, and procurement committee, also carry out effective monitoring over the daily operation and operating activities of the
subsidiaries.
(4) The main financial and business information systems, including SAP, CRM, SRM, BI, OMS and BPM, are centrally managed in
the headquarters of listed companies, which is convenient for the headquarters to access and manage the production, sales and
procurement of the subsidiaries through system reports in real time. In addition, all subsidiaries are also required to submit
management reports in respect of operation, finance, industry, human resources, etc., to the headquarters on a monthly basis.
(5) The receipts and payments of major subsidiaries are subject to centralized allocation and disbursement of the Financial Sharing
Center of the headquarters of the listed companies, and the Financial Sharing Center is responsible for the preparation and reporting
of the monthly balance sheets, profit statements and cash flow statements of the subordinate subsidiaries, and convening regular
meetings with subordinate subsidiaries to analyze and follow up the changes of various financial data.
(6) In accordance with the requirements of the Company's Management System for Information Disclosure Affairs, each subsidiary
shall promptly report to the headquarters of the listed companies relevant information pertaining to major business/financial and other
matters, and provide timely feedback on the progress or changes of major matters, and if necessary, go through the review and approval
procedures of the Board of Directors and Board of Shareholders.
(7) Timely identify the potential risks and major issues inside and outside the subsidiaries by means of internal audit, risk self-
assessment, anti-corruption questionnaire, management statement and anti-fraud investigation, etc., draw the management's attention
to key areas and vulnerable links, and promptly take measures to reduce relevant risks.
XIV. Evaluation Report of Internal Control or Internal Control Audit Report
1. Evaluation Report of Internal Control
Date of disclosure of full text of Evaluation
March 30, 2024
Report of Internal Control
Reference can be made to Self-Evaluation Report on Internal Control 2023 disclosed on
Reference for disclosure of full text of
Securities Times, China Securities Journal, Securities Daily, and
Evaluation Report of Internal Control
http://www.cninfo.com.cn.
The proportion of total unit assets involved
in evaluation scope in total assets of the 100.00%
consolidated financial statement
The proportion of operating income
involved in evaluation scope in operating
100.00%
income of the consolidated financial
statement
Defect Identification Standard
Categories Financial statement Non-financial statement
1) Identification standard of significant 1) Identification standard of significant
defects: fraud of directors, supervisors and defects: unscientific decision procedure of
Qualitative standard senior executives of the Company; the Company, such as significant decision-
modification of financial statement having making mistakes which cause the M&A of
been published; any material misstatement significant enterprise project to fail in
52
2023 Annual Report of Zhejiang Supor Co., Ltd.
of the current period financial statement reaching expected objectives; violation of
found by CPA but having not been found national laws and regulations, such as heavy
during internal control; and invalid losses of enterprise caused by non-
supervision by the Audit Committee, the conforming products; significant adverse
Board of Supervisors and internal audit influence existing in the production and
organization for internal control. operation of enterprise caused by severe loss
2) Identification standard of important of medium and senior management persons
defects: selection and application of and senior technicians; and lack of system
accounting policies violating accepted control or systematic invalidation for
accounting criteria; one or several defect(s) important business.
on the control of closing financial statement, 2) Identification standard of important
and failure of reasonably guarantee the defects: defects on important business
prepared financial statement is true and systems; failure of rectification for
accurate; no check-and-balance system and important defects found during internal
control measures preventing fraud control and internal supervision; and severe
established. loss of business persons on key posts.
3) General defects refer to other internal 3) Identification standard of general defects:
control defects not constituting the defects on general business systems; failure
standards of significant defects and of rectification for general defects found
important defects. during internal control and internal
supervision; and severe loss of business
persons on general posts.
1) Identification standard of significant
defects: potential misstatement of total
profit ≥ 5% of total profit; potential
misstatement of total operating income ≥
2% of total operating income; and potential 1) Identification standard of significant
misstatement of total assets ≥ 2% of total defects: direct property loss amount taking
assets. above (inclusive) 0.5% in total assets, and
2) Identification standard of important causing significant adverse influence on the
defects: 3% of total profit ≤ potential Company.
misstatement of total profit ＜ 5% of total 2) Identification standard of important
profit; 1% of total operating income ≤ defects: direct property loss amount taking
Quantitative standard potential misstatement of total operating above (inclusive) 0.1% but no more than
income ＜ 2% of total operating income; 0.5% in total assets, and causing no
and 1% of total assets ≤ potential significant adverse influence on the
misstatement of total assets ＜ 2% of total Company.
assets. 3) Identification standard of general defects:
3) Identification standard of general defects: direct property loss amount taking below
potential misstatement of total profit ＜ 3% 0.1% in total assets, and causing significant
of total profit; potential misstatement of adverse influence on the Company.
total operating income ＜ 1% of total
operating income; and potential
misstatement of total assets ＜ 1% of total
assets.
Quantity of significant defects in financial
0
statement (pcs)
Quantity of significant defects in non-
0
financial statement (pcs)
Quantity of important defects in financial
0
statement (pcs)
Quantity of important defects in non-
0
financial statement (pcs)
53
2023 Annual Report of Zhejiang Supor Co., Ltd.
2. Audit report of internal control
Applicable □ Not applicable
Deliberations in the audit report of internal control
We believe that your company has maintained effective internal control over financial reporting in all major aspects in accordance
with the Basic Standards for Internal Control of Enterprises and relevant regulations on December 31, 2023.
Disclosure of audit report of internal control Disclosed
Date of disclosure of full text of Audit Report of Internal Control March 30, 2024
Reference can be made to Audit Report on Internal Control 2023
Reference for disclosure of full text of Audit Report of Internal
disclosed on Securities Times, China Securities Journal, Securities
Control
Daily, and http://www.cninfo.com.cn.
Type of audit report opinion of internal control Standard opinions with no reservation
Significant defect in non-financial statements No
Did the accounting firm issue the audit report of internal control with non-standard opinions?
□ Yes No
Is the audit report of internal control issued by the accounting firm consistent with the opinions in self-evaluation report of the Board
of Directors?
Yes □ No
XV. Rectification of Self-inspected Problems in the Special Action on Governance of Listed
Companies
Not applicable
54
2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION V SOCIAL AND ENVIRONMENTAL
RESPONSIBILITIES
I. Major Environmental Issues
Do the listed company and its subsidiary belong to key pollutant discharging unit posted by the environmental protection department?
Yes □ No
Policies and industrial standards related to environmental protection
According to the Technical Specification for Application and Issuance of Pollutant Permit General Programme (HJ942-2018),
the Self-monitoring Technology Guidelines for Pollution Sources - General Rule (HJ819-2017) and the national standards for pollutants
discharge, the environmental impact assessment documents of construction projects and their administrative licenses, and the
requirements in national environment monitoring technical specifications, the Company has improved its self-monitoring scheme,
which needs to be put on record by the competent department for ecological environment under its jurisdiction.
Administrative permissions for environmental protection
According to the information from related systems, the relevant administrative permits of environmental protection are as follows:
Name of the Company or subsidiary Date of completion Validity period
The Company December 12, 2023 June 30, 2023 - June 29, 2028
Zhejiang Supor Electrical October 23, 2023 August 25, 2020 - August 24, 2025
Shaoxing Supor July 10, 2023 July 10, 2023 - July 9, 2028
Wuhan Supor Cookware September 15, 2023 September 11, 2023 - September 10, 2028
Industrial emission standard and pollutant discharge in production and operating activities
Name of
Type of main Number Total
Name of the main Discharge Total Excessiv
pollutant or Discharge of Distribution of Executive pollutant discharge
Company or pollutant or concentration discharge e
specific mode discharge discharge ports discharge standard amount
subsidiary specific /intensity amount discharge
pollutant ports checked
pollutant
Integrated
Indirect Wastewater
COD 1 30mg/L 5.19t 8.662t/a None
discharge Discharge Standard
(GB8978-1996)
Wastewater
Indirect Discharge
discharge port of
Water for Emission
the wastewater
pollutants Limitation of
The station in plant
Ammoniacal Indirect Nitrogen and
Company 1 area 1.5mg/L 0.26t 0.433t/a None
nitrogen discharge Phosphorus for
Industrial
Wastewater
(DB33/887-2013)
Emission Standard
Sulfur Organized No.1, No.2 and
Air pollutants 39 ＜200 mg/m of Air Pollutants for 0.95t 3.06t/a None
dioxide emission No.6 plants
Industrial Surface
55
2023 Annual Report of Zhejiang Supor Co., Ltd.
Coating
(DB33/2146-2018);
Integrated Emission
Standard of Air
Pollutants
(GB16297-1996);
Emission Standard
of Air Pollutants for
Industrial Kiln and
Furnace (GB9078-
1996)
Emission Standard
of Air Pollutants for
Industrial Surface
Coating
(DB33/2146-2018);
Integrated Emission
Organized Standard of Air
Oxynitride 39 ＜300 mg/m 8.86t 14.66t/a None
emission Pollutants
(GB16297-1996);
Emission Standard
of Air Pollutants for
Industrial Kiln and
Furnace (GB9078-
1996)
Integrated
Chemical
Wastewater
oxygen 1 136 mg/l 17.49t 111.1348t/a None
Discharge Standard
demand
(GB8978-1996)
Indirect Discharge
for Emission
General outlets Limitation of
Zhejiang Indirect
Water Ammoniacal of wastewater Nitrogen and
Supor discharge 1 6.19 mg/l 1t 7.7794t/a None
pollutants nitrogen (DW001) Phosphorus for
Electrical
Industrial
Wastewater
(DB33/887-2013)
Emission Standard
Total of Pollutants for
1 10.4 mg/l 1.2675t 3.334t/a None
nitrogen Electroplating (GB
21900-2008)
Integrated
Chemical
Wastewater
oxygen 1 ＜200mg/L 144.29t 224.657t/a None
Discharge Standard
demand
(GB8978-1996)
Indirect Discharge
for Emission
Limitation of
Indirect Comprehensive
Shaoxing Water Ammoniacal Nitrogen and
discharge 1 sewage ＜10mg/L 7.215t 9.363t/a None
Supor pollutants nitrogen Phosphorus for
discharge port
Industrial
Wastewater
(DB33/887-2013)
Wastewater Quality
Total Standards for
1 ＜20mg/L 14.429t 33.447t/a None
nitrogen Discharge to
Municipal Sewers
56
2023 Annual Report of Zhejiang Supor Co., Ltd.
(GB/T 31962-2015);
Integrated
Chemical
General Wastewater
oxygen 1 ＜500mg/L 9.317t 19.38t/a None
discharge port of Discharge Standard
demand
the sewage (GB8978-1996)
Water Indirect
treatment station Wastewater Quality
pollutants discharge
Wuhan Supor to the north of Standards for
Ammoniacal
Cookware 1 the plant area ＜45mg/L Discharge to 0.573t 1.94t/a None
nitrogen
Municipal Sewers
(GB/T 31962-2015);
Emission port of Integrated Emission
Volatile
Organized waste gas ＜ Standard of Air
Air pollutants organic 1 2.587t 12.16t/a None
emission treatment of 120mg/Nm Pollutants
compounds
No.1 workshop (GB16297-1996)
Treatment of pollutants
Under special sewage treatment mechanism in the Company, all wastewater generated will gather at this station for central
treatment. After chemical precipitation and autocatalyzed oxidation, wastewater will meet the first grade discharge standards and then
be discharged into urban wastewater pipes. At the same time, the Company has reclaimed water reuse facilities that can arrange water
treatment plan according to water quality. The production wastewater is first treated at the sewage treatment station and then disposed
through the reclaimed water system for production. After that, part of the sanitary sewage after combined treatment enters municipal
sewage network.
The Company collected different exhaust gases and used different treatment modes, and then discharged after reaching the
standard. The treatment processes involved are as follows: water curtain, spray tower, dry filter, low-temperature plasma, cyclone and
filter dust collector, activated carbon adsorption, UV photolysis purification, desorption and catalytic combustion and other combined
treatments.
The Company has established a reliable wastewater and exhaust gas treatment system, and ensures that the discharge and disposal
of three wastes generated in the process of production and operation comply with relevant laws and regulations through regular
inspection, supervision and inspection mechanism and third-party inspection organizations. During the reporting period, if the
Company does not exceed the standard discharge, it will meet the relevant requirements of the competent department for ecological
environment.
Environmental monitoring scheme
The Company has formulated an annual environmental monitoring scheme in accordance with relevant national laws and
regulations, and entrusted a qualified third party to carry out environmental monitoring.
Environmental emergency plan
The Company has completed the emergency plan for environmental emergencies and conducted regular emergency drills.
Environmental governance and protection input and payment of environmental protection tax
During the reporting period, the Company's total investment in environmental governance and protection was RMB 20.14 million,
including RMB 0.055 million of environmental protection tax.
Measures and effects taken to reduce carbon emissions during the reporting period
□ Applicable Not applicable
Administrative penalties for environmental problems during the reporting period
None
Other environmental information that shall be made public
None
Other environmental protection related information
None
57
2023 Annual Report of Zhejiang Supor Co., Ltd.
II. Social responsibilities
For details, please refer to the Environmental, Social and Governance Report 2023 released by the Company.
III. Consolidate and Expand the Achievement of Poverty Alleviation and the Implementation
of Rural Revitalization
During the reporting period, the Company actively supported the national policy of rural revitalization and common prosperity,
adhered to the Company's vision and mission, practiced the welfare proposition of "sharing a better life with each child", actively
donated funds to improve the basic education conditions in remote mountainous areas in the central and western regions, actively
leveraged its industrial and resource advantages to support urban and rural schools in promoting life literacy education. In doing so,
the Company collaborated with the families and schools to jointly cultivate future-oriented, life-loving, and new-generation children
who care for their families.
At present, the Company has donated for the construction of 28 Supor Primary Schools in remote mountainous areas in the central
and western regions, and will steadily increase the number of schools in the future. In 2023, Supor joined hands with public welfare
partners to continue to provide online livestreaming courses of art, foreign language, and science to 14 Supor Primary Schools, allowing
children in mountain villages to access high-quality education. The Company has also been focusing on improving the educational
perspectives and abilities of rural teachers in mountainous areas over the years. In the summer of 2023, the study tour for rural teachers
at Supor Primary Schools resumed, and 41 rural teachers came to Hangzhou with the support of the Company to carry out educational
exchanges.
The "Supor – Little Artists of Life" project, which supports the improvement of life literacy education in urban and rural schools,
is also progressing steadily, and perfecting progressively. To date, over 20 urban and rural schools across Hangzhou, Shaoxing, Lishui,
Wuhan, Xingyi, and more have received support, creating life education space and conducting life skills classes, enabling children to
achieve better growth through practical experiences.
Supor employees also took an active part in public welfare. On the eve of the Children's Day, hundreds of employees of the
Company participated in the "Running for Children" campaign to provide donations based on the number of running steps, supporting
the children in need. During the public welfare week in December, employee volunteers visited Qinglong Dasendian Supor Primary
School in Hebei on behalf of the Company, offering interest classes in cooking, crafts, reading, and hosting to the children, spending
joyful time together.
In addition, the Company also actively donated useful supplies for rural revitalization and earthquake relief, bringing warmth to
rural children and victims.
In the future, the Company will continue to actively respond to the national policy of rural revitalization and common prosperity,
give full play to the advantages of Supor's business capabilities and resources, actively promote various charity programs and activities
in terms of literacy education for children in rural villages and broadening their horizons, and work with more like-minded charity
partners to contribute to a better life and better society in rural areas.
Indicator Measurement unit Quantity/fulfillment
Rural revitalization and common prosperity —— ——
Including: Investment amounts for funding poor students RMB 10,000
Number of benefited rural students Person 10,000
Amount invested to improve the education resources in rural areas (material value) RMB 10,000 867
Awards received (content, grade) —— ——
58
2023 Annual Report of Zhejiang Supor Co., Ltd.
CCTV Top 100 ESG Pioneers
Zhejiang Province Corporate Social Responsibility Outstanding Report
Most Influential Brand of the Social Responsibility Assembly
Responsibility Brand Award in the Public Welfare Festival
59
2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION VI SIGNIFICANT EVENTS
I. Fulfillment of Commitments
1. Commitments that were fulfilled during the reporting period and had not been fulfilled till the end of
reporting period by actual controller, shareholder, related party, acquirer and other commitment parties of
the Company
□ Applicable Not applicable
There were no commitments that were fulfilled during the reporting period and had not been fulfilled till the end of reporting period
by actual controller, shareholder, related party, acquirer and other commitment parties of the Company.
2. Where assets or projects of the Company are expected to make profit, and the expected profiting period is
during the reporting period, the Company hereby explains
□ Applicable Not applicable
II. Occupied Non-business Capital of Listed Company for Controlling Shareholders and
Related Parties
□ Applicable Not applicable
There was no non-operating occupation of capital of listed companies by controlling shareholders and their related parties of the
Company during the reporting period.
III. Illegal External Guarantee
□ Applicable Not applicable
There was no illegal external guarantee of the Company during the reporting period.
IV. Explanation on the Board of Directors on the Latest "Non-standard Audit Report"
□ Applicable Not applicable
V. Explanation on the Board of Directors, the Board of Supervisors and Independent Directors
(If Any) on the "Non-standard Audit Report" during the Reporting Period
□ Applicable Not applicable
VI. Representation of Changes in Accounting Policies and Accounting Estimates or Correction
of Important Accounting Errors, Compared with the Financial Statements of the Previous Year
□ Applicable Not applicable
During the reporting period, there was no change in accounting policies, accounting estimates or correction of important accounting
errors.
60
2023 Annual Report of Zhejiang Supor Co., Ltd.
VII. Information on Change of the Scope of Consolidated Statement Compared with the
Previous Year's Financial Statements
□ Applicable Not applicable
There was no change in the scope of consolidated statements during the reporting period.
VIII. Employment and Disengagement of Certified Public Accountants
Certified public accountants engaged at the moment
Name of the Chinese Certified Public Accountants KPMG Huazhen LLP (Special General Partnership)
Reward for domestic certified public accountants (RMB 10,000) 280.00
Service years of audit for the Company 3
Names of CPAs from domestic certified public accountants Huang Feng, Jin Yang
Service years of audit of the CPAs Huang Feng (three years), Jin Yang (three years)
Intension of changing certified public accountants
□ Yes No
Employment of internal control counting firm, financial consultant or sponsor
Applicable □ Not applicable
Same accounting firm for internal control audit
IX. Delisting after Disclosure of Annual Report
□ Applicable Not applicable
X. Bankruptcy or Reorganization
□ Applicable Not applicable
There was no bankruptcy, reorganization or related matters in the Company during the reporting period.
XI. Important Matters of Lawsuit and Arbitration
□ Applicable Not applicable
There was no significant litigation and arbitration occurred during the reporting period.
XII. Punishment and Rectification
□ Applicable Not applicable
There was no punishment and rectification during the reporting period.
XIII. Integrity of the Company, Its Controlling Shareholders and Actual Controllers
□ Applicable Not applicable
61
2023 Annual Report of Zhejiang Supor Co., Ltd.
XIV. Major Related Transactions
1. Related transaction related to daily business
Applicable □ Not applicable
Appro Marke
Pricing Percenta ved t price
Amount of Exceedin
principle Price of ge to transa Means of of Referen
Type of Contents of related g Date of
Association of related amount ction payments of availa ce for
Related party related related transaction approved disclosur
relationships related transacti of same limit related ble disclosu
transaction transaction (RMB limit or e
transacti on transacti (RMB transaction same re
10,000) not
on on 10,000 transa
) ction
Wuhan Anzai Associated Purchase of Finished Contract Bank transfer
- 12,917.47 0.97% No -
Cookware Co., Ltd. enterprise commodity products price or notes
Wuhan Anzai Associated Purchase of Accessorie Market Bank transfer
- 5,250.52 0.39% No -
Cookware Co., Ltd. enterprise commodity s price or notes
Same
controlling
GROUPE SEB Purchase of Finished Contract Bank transfer
shareholder with - 132.33 0.01% No -
EXPORT commodity products price or notes
the controlling
shareholder
Same
controlling
GROUPE SEB Purchase of Accessorie Market Bank transfer
shareholder with - 7.38 0.00% No -
EXPORT commodity s price or notes
the controlling
shareholder
Same
controlling
GROUPE SEB Purchase of Accessorie Market Bank transfer
shareholder with - 287.17 0.02% No -
MOULINEX commodity s price or notes
the controlling
shareholder
Same
Purchase of Finished Contract Bank transfer
LAGOSTINA S.P.A. controlling - 282.13 0.02% No -
commodity products price or notes
shareholder
Same
controlling
Purchase of Accessorie Market Bank transfer
TEFAL S.A.S. shareholder with - 2,021.35 0.15% No -
commodity s price or notes
the controlling
shareholder
Same
GROUPE SEB Purchase of Finished Contract Bank transfer
controlling - 1.76 0.00% No -
SINGAPORE commodity products price or notes
shareholder
Same
GROUPE SEB Purchase of Finished Contract Bank transfer
controlling - 41.37 0.00% No -
THAILAND commodity products price or notes
shareholder
Same
Purchase of Finished Contract Bank transfer
SEB ASIA LTD. controlling - 26.05 0.00% No -
commodity products price or notes
shareholder
Same
Heshan Demei Purchase of Finished Contract Bank transfer
controlling - 18.47 0.00% No -
Tableware Co., Ltd. commodity products price or notes
shareholder
Same
WMF GROUPE Purchase of Finished Contract Bank transfer
controlling - 5,599.11 0.42% No -
GMBH commodity products price or notes
shareholder
62
2023 Annual Report of Zhejiang Supor Co., Ltd.
WMF Consumer Same
Purchase of Finished Contract Bank transfer
Goods (Shanghai) controlling - 1.02 0.00% No -
commodity products price or notes
Co, Ltd. shareholder
Same
SEB controlling
Purchase of Finished Contract Bank transfer
INTERNATIONAL shareholder with - 2.11 0.00% No -
commodity products price or notes
SERVICE S.A.S. the controlling
shareholder
Same
SEB controlling
Purchase of Accessorie Market Bank transfer
INTERNATIONAL shareholder with - 8.41 0.00% No -
commodity s price or notes
SERVICE S.A.S. the controlling
shareholder
Same
controlling
Purchase of Accessorie Market Bank transfer
ETHERA shareholder with - 14.14 0.00% No -
commodity s price or notes
the controlling
shareholder
Same
GROUPE SEB Purchase of Finished Market Bank transfer
controlling - 17.12 0.00% No -
KOREA LTD commodity products price or notes
shareholder
Same Sale of
Finished Contract Bank transfer
SEB ASIA LTD. controlling commoditi - 571,865.12 26.84% No -
products price or notes
shareholder es
Same Sale of
Accessorie Contract Bank transfer
SEB ASIA LTD. controlling commoditi - 2,235.54 0.10% No -
s price or notes
shareholder es
Same
controlling Sale of
Finished Contract Bank transfer
S.A.S. SEB shareholder with commoditi - 1,572.28 0.07% No -
products price or notes
the controlling es
shareholder
Same
controlling Sale of
Accessorie Contract Bank transfer
S.A.S. SEB shareholder with commoditi - 47.19 0.00% No -
s price or notes
the controlling es
shareholder
Same
controlling Sale of
Finished Contract Bank transfer
TEFAL S.A.S. shareholder with commoditi - 267.48 0.01% No -
products price or notes
the controlling es
shareholder
Same
controlling Sale of
Accessorie Contract Bank transfer
TEFAL S.A.S. shareholder with commoditi - 1,824.55 0.09% No -
s price or notes
the controlling es
shareholder
Same
controlling Sale of
GROUPE SEB Finished Contract Bank transfer
shareholder with commoditi - 1,434.42 0.07% No -
MOULINEX products price or notes
the controlling es
shareholder
Company
Sale of
Supor Group Co., controlled by Finished Market Bank transfer
commoditi - 997.67 0.05% No -
Ltd. related natural products price or notes
es
person
Zhejiang Nanyang Company Sale of Finished Market - 88.15 0.00% No Bank transfer-
63
2023 Annual Report of Zhejiang Supor Co., Ltd.
Pharmaceutical Sales controlled by commoditi products price or notes
Co., Ltd. related natural es
person
Same
SEB controlling Sale of
Accessorie Contract Bank transfer
INTERNATIONAL shareholder with commoditi - 2,017.58 0.09% No -
s price or notes
SERVICE S.A.S. the controlling es
shareholder
Same Sale of
Accessorie Contract Bank transfer
LAGOSTINA S.P.A. controlling commoditi - 44.02 0.00% No -
s price or notes
shareholder es
Same Sale of
GROUPE SEB Finished Contract Bank transfer
controlling commoditi - 1,107.06 0.05% No -
CANADA products price or notes
shareholder es
Same Sale of
Finished Contract Bank transfer
IMUSA USA LLC controlling commoditi - 755.94 0.04% No -
products price or notes
shareholder es
Same Sale of
Accessorie Contract Bank transfer
IMUSA USA LLC controlling commoditi - 4.31 0.00% No -
s price or notes
shareholder es
WMF Consumer Same Sale of
Finished Contract Bank transfer
Goods (Shanghai) controlling commoditi - 22.69 0.00% No -
products price or notes
Co, Ltd. shareholder es
GROUPE SEB Same Sale of
Finished Contract Bank transfer
VIETNAM JOINT controlling commoditi - 1,359.23 0.06% No -
products price or notes
STOCK COMPANY shareholder es
Same Sale of
GROUPE SEB Accessorie Contract Bank transfer
controlling commoditi - 152.07 0.01% No -
ANDEAN S.A. s price or notes
shareholder es
Total -- -- 612,423.21 -- 0 -- -- -- -- --
Details of large sales return Not applicable
In 2023, the annual daily related transaction amount between the Company and SEB as well as its
related parties was estimated to be RMB 6,000 million, and the actual amount of daily related
Actual implementation of estimated total amount of related transactions is RMB5,931.69 million, which is RMB 68.31million less than the total amount of
transaction by category incurred during the period in the daily related transaction estimated in the announcement. (See details in the Announcement of
reporting period (if any) Increasing Estimation of Daily Connected Transactions in 2023 and Estimation of Daily Connected
Transactions in 2024 (No.: 2023-089) disclosed by the Company on December 22, 2023 on
http://www.cninfo.com.cn).
Reason for the big difference between transacted price and
Not applicable
market reference price (if applicable)
2. Related transactions from purchase and sales for assets or equity
□ Applicable Not applicable
There were no related transactions from purchase and sales for assets or equity during the reporting period.
3. Related transaction for co-investment abroad
□ Applicable Not applicable
There was no related transaction involving joint external investment during the reporting period.
64
2023 Annual Report of Zhejiang Supor Co., Ltd.
4. Connected creditor's rights and debts
□ Applicable Not applicable
There were no related creditor's rights and debts during the reporting period
5. Dealings with associated financial companies
□ Applicable Not applicable
There was no deposit, loan, credit or other financial business between the Company and associated financial companies and their related
parties.
6. Dealings between the financial companies controlled by the Company and their related parties
□ Applicable Not applicable
There was no deposit, loan, credit or other financial business between the Company and holding financial companies and their related
parties.
7. Other important Related transactions
□ Applicable Not applicable
There were no significant related transactions during the reporting period.
XV. Significant Contracts and Performance
1. Custody, contracting, and leasing
(1) Custody
□ Applicable Not applicable
No custody was made during the reporting period.
(2) Contracting
□ Applicable Not applicable
No contracting was made during the reporting period.
(3) Leasing
Applicable □ Not applicable
Circumstances of leasing
Please refer to 15 "Right-of-use assets" and 28 "lease obligation" in SECTION X "FINANCIAL STATEMENT" VII "Notes to items
of consolidated financial statements".
The profit and loss brought to the company reaches more than 10% of the total profit of the company during the reporting period.
□ Applicable Not applicable
During the reporting period, there are no leasing items that bring profits and losses of the Company to more than 10% of the total
profits of the Company during the reporting period.
65
2023 Annual Report of Zhejiang Supor Co., Ltd.
2. Major guarantee
Applicable □ Not applicable
Unit: RMB 10,000
External guarantee of the Company and its subsidiaries (excluding the guarantee to subsidiaries)
Disclosure date
of
Name of Actual Counter- Whether it is
announcement Guaranteed Actual Collateral (if Guarantee
guaranteed guaranteed Guarantee type guarantee (if Fulfilled or not guaranteed by
related to the amount occurring date any) period
object amount any) related parties
guaranteed
amount
Supor's
distributors
December 14, July 2022 - General July 2022 -
who meet 140,000.00 12,638.78 Cash Yes Yes No
2021 August 2022 guarantee February 2023
certain
conditions
Supor's
distributors September September
August 31, General
who meet 140,000.00 2022 - April 58,788.94 Cash Yes 2022 - October Yes No
2022 guarantee
certain 2023 2023
conditions
Supor's
distributors
May 2023 - General May 2023 -
who meet March 31, 2023 140,000.00 52,193.89 Cash Yes No No
December 2023 guarantee June 2024
certain
conditions
Total external guaranteed Total actual amount of external
amount approved during the 140,000.00 guarantee during the reporting 123,621.61
reporting period (A1) period (A2)
Total external guaranteed Total actual external guarantee
amount approved at the end of 280,000.00 balance at the end of the 34,391.36
the reporting period (A3) reporting period (A4)
Guarantee of the Company to subsidiaries
Disclosure date
of
Name of Actual Counter- Whether it is
announcement Guaranteed Actual Collateral (if Guarantee
guaranteed guaranteed Guarantee type guarantee (if Fulfilled or not guaranteed by
related to the amount occurring date any) period
object amount any) related parties
guaranteed
amount
Zhejiang
Shaoxing
Supor July 2022 - General July 2022 -
April 1, 2022 270,000.00 67,550.55 None None Yes No
Household December 2022 guarantee June 2023
Products Co.,
Ltd.
Wuhan Supor September September
General
Cookware Co., April 1, 2022 20,000.00 2022 - 3,315.00 None None 2022 - June Yes No
guarantee
Ltd. December 2022 2023
Zhejiang
Shaoxing
January 2023 - General January 2023 -
Supor April 1, 2022 270,000.00 28,868.88 None None Yes No
April 2023 guarantee October 2023
Household
Products Co.,
66
2023 Annual Report of Zhejiang Supor Co., Ltd.
Ltd.
Wuhan Supor
January 2023 - General January 2023 -
Cookware Co., April 1, 2022 20,000.00 1,890.00 None None Yes No
April 2023 guarantee October 2023
Ltd.
Zhejiang
Shaoxing
Supor May 2023 - General May 2023 -
March 31, 2023 260,000.00 137,224.50 None None No No
Household December 2023 guarantee June 2024
Products Co.,
Ltd.
Wuhan Supor
May 2023 - General May 2023 -
Cookware Co., March 31, 2023 30,000.00 6,355.00 None None No No
December 2023 guarantee June 2024
Ltd.
Approved total guaranteed Total actual amount of guarantee
amount towards the subsidiaries 400,000.00 to subsidiaries during the 245,203.93
during the reporting period (B1) reporting period (B2)
Total guaranteed amounts to Total actual guarantee balance
subsidiaries approved at the end 700,000.00 for subsidiaries at the end of the 83,172.50
of the reporting period (B3) reporting period (B4)
Guarantee of the subsidiaries to subsidiaries
Disclosure date
of
Name of Actual Counter- Whether it is
announcement Guaranteed Actual Collateral (if Guarantee
guaranteed guaranteed Guarantee type guarantee (if Fulfilled or not guaranteed by
related to the amount occurring date any) period
object amount any) related parties
guaranteed
amount
Zhejiang
Shaoxing
Supor July 2022 - General July 2022 -
April 1, 2022 270,000.00 11,900.00 None None Yes No
Household December 2022 guarantee June 2023
Products Co.,
Ltd.
Zhejiang
Shaoxing
Supor January 2023 - General January 2023 -
April 1, 2022 270,000.00 13,580.00 None None Yes No
Household April 2023 guarantee October 2023
Products Co.,
Ltd.
Zhejiang
Shaoxing
Supor May 2023 - General May 2023 -
March 31, 2023 260,000.00 16,306.50 None None No No
Household December 2023 guarantee June 2024
Products Co.,
Ltd.
Approved total guaranteed Total actual amount of guarantee
amount towards the subsidiaries 0 to subsidiaries during the 41,786.50
during the reporting period (C1) reporting period (C2)
Total guaranteed amounts to Total actual guarantee balance
subsidiaries approved at the end 0 for subsidiaries at the end of the 16,306.50
of the reporting period (C3) reporting period (C4)
Total guaranteed amount of the Company (namely the total of the first three items)
Total approved guaranteed Total guaranteed actual amount
540,000.00 410,612.04
amount during the reporting during the reporting period
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2023 Annual Report of Zhejiang Supor Co., Ltd.
period (A1+B1+C1) (A2+B2+C2)
Total approved guaranteed Total actual guarantee balance at
amount at the end of the 980,000.00 the end of the reporting period 133,870.36
reporting period (A3+B3+C3) (A4+B4+C4)
Proportion of the total amount of actual guarantee (i.e A4+B4+C4)
21.10%
to the net assets of the Company
Including:
Total guaranteed amount towards shareholders, actual controllers
0
and related parties (D)
Balance of debt guarantee directly or indirectly provided to the
99,479.00
guaranteed object with an asset-liability ratio exceeding 70% (E)
Amount of the total guarantee exceeding 50% of the net assets (F) 0
Total amount of the above three guarantees (D+E+F) 99,479.00
Description of the guarantee liability occurred during the reporting
period or there is evidence that it is possible to bear joint and
Not applicable
several liability for settlement for the unexpired guarantee contract
(if any)
Descriptions for external guarantee provided against the
Not applicable
established procedures (if any)
Note: The 19th Session of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2022 Fiscal Year of the
Company reviewed and adopted the Proposal on Guarantee for Wholly-owned Subsidiaries and Mutual Guarantee among Wholly-
owned Subsidiaries, and agreed that the Company and its wholly-owned subsidiaries would provide guarantees up to RMB 4 billion
for the wholly-owned subsidiaries in the year of 2023. Among them, the guaranteed amount for companies with 70% (inclusive) asset-
liability ratio or over is RMB 3 billion, and RMB 1 billion for companies with a asset-liability ratio below 70%.
Specific description for using the composite guarantee situation
None
3. Entrusting others for cash asset management
(1) Entrustment for financial management
Applicable □ Not applicable
Overview of entrusted financing during the reporting period
Unit: RMB 10,000
The amount of impairment
Source of fund for Amount incurred of Overdue amount
Specific type Undue balance accrued from overdue
entrusted financing entrusted financing unclaimed
financial investment products
Bank financial
Self-owned capital 43,000 30,000 0 0
products
Financial products of
Self-owned capital 5,000 5,000 0 0
securities trader
Total 48,000 35,000 0 0
Note: The short-term financial products purchased by the Company in 2023 can be found in the Announcement of Short-term Investment
Using Excessive Cash (Announcement No. 2023-022) and the Announcement of Progress of Using Excessive Cash to Purchase
Financial Products (Announcement No. 2023-006, 2023-054 and 2023-075) on http://www.cninfo.com.cn.
Specific situation of high-risk entrusted finance with significant single amount, low security and poor liquidity
68
2023 Annual Report of Zhejiang Supor Co., Ltd.
□ Applicable Not applicable
Circumstances in which principal of entrusted financing may not be recovered or which may result in decrease in value:
□ Applicable Not applicable
(2) Entrustment for loan
□ Applicable Not applicable
No entrustment for loan was made during the reporting period.
4. Other significant contracts
□ Applicable Not applicable
There were no other significant contracts involved in the Company during the reporting period.
XVI. Instructions for other important matters
□ Applicable Not applicable
The Company has no other important matters to be explained during the reporting period.
XVII. Important matters of subsidiaries
□ Applicable Not applicable
69
2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION VII CHANGES IN SHARE CAPITAL AND
PARTICULARS ABOUT SHAREHOLDERS
I. Changes of shares
1. Changes of shares
Unit: share
Before change Increase/decrease in the period (+, -) After change
Conve
Share New Shares Share Proportio
Proportion rted Others Subtotal
number shares bonus number n
capital
I. Restricted shares 3,110,073 0.38% -283,538 -283,538 2,826,535 0.35%
1. Shares held by the state 0 0.00% 0 0 0 0.00%
2. Stated-owned legal person
0 0.00% 0 0 0 0.00%
shares
3. Other domestic
3,110,073 0.38% -283,538 -283,538 2,826,535 0.35%
shareholdings
Including: Shares held by
0 0.00% 0 0 0 0.00%
domestic legal entities
Shares held by domestic
3,110,073 0.38% -283,538 -283,538 2,826,535 0.35%
natural persons
4. Shares held by foreign
0 0.00% 0 0 0 0.00%
capitals
Including: Shares held by
0 0.00% 0 0 0 0.00%
foreign legal entities
Shares held by foreign
0 0.00% 0 0 0 0.00%
natural persons
II. Non-restricted Shares 805,544,403 99.62% -1,662,281 -1,662,281 803,882,122 99.65%
1. RMB common share 805,544,403 99.62% -1,662,281 -1,662,281 803,882,122 99.65%
2. Domestically listed
0 0.00% 0 0 0 0.00%
foreign shares
3. Overseas listed foreign
0 0.00% 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0.00%
III. Total shares 808,654,476 100.00% -1,945,819 -1,945,819 806,708,657 100.00%
Reasons for the change of shares
Applicable □ Not applicable
1. Top management of the Company unlocked 25% of the shares registered under their names on the last transaction date of the previous
year.
70
2023 Annual Report of Zhejiang Supor Co., Ltd.
2. On February 24, 2023, a total of 79,000 shares of restricted stock of postponed portion of the 2022 Restricted Stock Incentive Plan
were transferred to 2 incentive objects.
3. On April 10, 2023, the Company cancelled a total of 1,870,069 repurchased public shares. Upon the cancellation, the Company's
total share capital decreased from 808,654,476 to 806,784,407 shares.
4. On June 29, 2023, totally 75,750 shares of restricted stock that have been granted to resigned incentive objects but have not been
unlocked from restriction in 2021 and 2022 Restricted Stock Incentive Plans were repurchased and cancelled by the Company. Upon
the repurchase and cancellation, the Company's total share capital decreased from 806,784,407 shares to 806,708,657 shares.
5. On November 17, 2023, the shares held by Mr. Su Ming-Jui, former General Manager of the Company that were originally locked
due to resignation were unlocked fully.
Approval of change in share
Applicable □ Not applicable
1. On January 31, 2023, the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects was reviewed and adopted
at the 18th Session of the Seventh Board of Directors and the 17th Session of the Seventh Board of Supervisors, the Company agreed to
grant a total of 79,000 shares of postponed portion of restricted stocks to two incentive objects. The grant date was February 1, 2023.
After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the postponed portion of
restricted stocks in the Company's 2022 Restricted Stock Incentive Plan were transferred and registered under the name of two incentive
objects on February 24, 2023.
2. On March 29, 2023, the Proposal on Terminating the Public Shares Repurchase Plan was reviewed and adopted at the 19th Session
of the Seventh Board of Directors and the 18th Session of the Seventh Board of Supervisors of the Company, the Company plans to
cancel 1,870,069 shares held in the Company’s special stock repurchase account to reduce registered capital as authorized by the
Annual General Meeting of Shareholders for 2021 Fiscal Year. After confirmed by Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited, the Company completed the cancellation of the above shares on April 10, 2023.
3. On August 30, 2022 and on March 29, 2023, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed
and adopted respectively at the 14th Session of the Seventh Board of Directors and the 13th Session of the Seventh Board of Supervisors
and the 19th Session of the Seventh Board of Directors and the 18th Session of the Seventh Board of Supervisors. For the disqualification
of 18 incentive objects due to their resignation, the Company has decided to repurchase and cancel 75,750 shares of restricted stock at
the price of RMB 1 per share. The above matter of repurchase and cancellation of restricted stocks has been deliberated and approved
at the Annual General Meeting of Shareholders for 2022 Fiscal Year held on April 25, 2023. The Company has repurchased and
canceled 75,750 shares of restricted stock at the price of RMB 1 per share and paid totally RMB 75,750 to the above resigned incentive
objects. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company
completed the above matter of repurchase and cancellation of restricted stocks on June 29, 2023.
Transfer of shares changed
Applicable □ Not applicable
After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, totally 79,000 shares of
postponed portion of restricted stocks under the Company's 2022 Restricted Stock Incentive Plan were transferred and registered under
the name of two incentive objects on February 24, 2023.
Influence of shares change on basic earnings per share and diluted earnings per share in latest year and period, net assets per share
owned by the Company's ordinary shareholder and other financial indicators.
Applicable □ Not applicable
71
2023 Annual Report of Zhejiang Supor Co., Ltd.
There are 1,870,069 public shares repurchased and cancelled and 75,750 restricted stocks repurchased and cancelled in the period in
total, which creates a minor impact on the earnings per share and dilution of earnings per share, and creates no impact on other financial
indicators such as the net asset per share attributable to common share shareholders of the Company.
The other contents the company thinks fit to disclose or the securities regulatory authority requires to disclose
□ Applicable Not applicable
2. Changes of restricted shares
Applicable □ Not applicable
Unit: share
Restricted Restricted Restricted Restricted
outstanding outstanding outstanding outstanding
Name stocks at the stocks stocks stocks at the Restriction reason Date of unlocking restriction
beginning of increased in released in end of the
the year current period current period year
Unlock 25% of the shares registered under
Locked stocks of top
Su Xianze 364,602 0 91,151 273,451 their names on the last transaction date of
management
the last year.
Unlock 25% of the shares registered under
Locked stocks of top
Xu Bo 130,303 0 43,826 86,477 their names on the last transaction date of
management
the last year.
Unlock 25% of the shares registered under
Locked stocks of top
Ye Jide 39,143 0 14,786 24,357 their names on the last transaction date of
management
the last year.
Executive lock-up
The shares held were completed unlocked
Su Ming-Jui 137,025 1,050 138,075 0 stocks (unlock after
on November 17, 2023.
departure)
As of the Company's 2021 Restricted Stock
Incentive Plan, 1,209,500 shares of
74,000 shares of restricted stocks were transferred to 293
restricted stocks were incentive objects on January 27, 2022. The
Incentive objects of repurchased and above restricted stocks were lifted in two
2021 Equity 1,185,500 0 74,000 1,111,500 cancelled in portions within 24 months from the date of
Incentive Plan consideration that parts grant registration, and the lift ratio of both
of resigned incentive portions is 50%. The first phase was
objects. unlocked, listed and circulated on February
2, 2024; The second phase is expected to
start after January 27, 2025.
1,253,500 restricted stocks of the
Company's 2022 Restricted Stock Incentive
Plan was transferred to 288 incentive
objects on November 10, 2022, and the
1,750 shares of suspended grant part was transferred to 2
restricted stocks were incentive objects on February 24, 2023. The
Incentive objects of repurchased and above restricted stocks were lifted in two
2022 Equity 1,253,500 79,000 1,750 1,330,750 cancelled in portions within 24 months from the date of
Incentive Plan consideration that parts grant registration, and the lift ratio of both
of resigned incentive portions is 50%. The first portion is
objects. expected to be unlocked after November 10,
2024, and the first portion of the suspended
grant part is expected to be lifted after
February 24, 2025; The second portion is
expected to be unlocked after November 10,
72
2023 Annual Report of Zhejiang Supor Co., Ltd.
2025, and the second portion of the
suspended grant part is expected to be
unlocked after February 24, 2026.
Total 3,110,073 80,050 363,588 2,826,535 -- --
II. Security Offering and Listing Information
1. Security offering (excluding preferred share) during the reporting period
□ Applicable Not applicable
2. Total shares of the Company, change of shareholder structure, and changes of the Company's assets and
liabilities structure
Applicable □ Not applicable
During the reporting period, the Company cancelled 1,870,069 public shares repurchased, and 75,750 restricted stocks granted to
resigned incentive objects under the 2021 Restricted Stock Incentive Plan and 2022 Restricted Stock Incentive Plan but not lifted for
sales, which in combination are 1,945,819 shares in total. Upon the cancellation, the Company's total share capital decreased from
808,654,476 shares to 806,708,657 shares.
3. Staff shares
□ Applicable Not applicable
III. Shareholders and the Actual Controller
1. Number of shareholders of the Company and share-holding conditions
Unit: share
Total number of
Number of
preferred
common Total number of preferred
shareholder
shareholders at shareholders with restored
Total number of common whose voting
the end of last voting right at the end of last
shareholders at the end of 12,314 14,111 right is recovered 0 0
month before month before the disclosure date
the reporting period at the end of
the disclosure of the annual report (if any) (see
reporting period
date of the Note 8)
(if any) (refer to
annual report
Note 8)
Shareholding of shareholders holding more than 5% shares or top 10 shareholders (excluding shares lent out through securities financing)
Number of Pledge, marking or freezing
shares held at Increase/decrease Number of
Shareholding Number of non-
Name Nature the end of the during the restricted
ratio restricted shares Status of
reporting reporting period shares Share number
share
period
SEB
Foreign legal Not
INTERNATIONALE 82.64% 666,681,904 0 0 666,681,904 0
entity applicable
S.A.S
Hong Kong Securities Foreign legal Not
8.52% 68,728,932 -4,752,531 0 68,728,932 0
Clearing Company Ltd. entity applicable
73
2023 Annual Report of Zhejiang Supor Co., Ltd.
Ningbo Bank-Zhongtai
Xingyuan Value-selected
Not
Flexible Complex Others 0.86% 6,913,640 -2,687,919 0 6,913,640 0
applicable
Securities Investment
Funds
China Merchants Bank-
Zhongtai Yuheng Value-
Not
selected Flexible Others 0.30% 2,390,948 -579,165 0 2,390,948 0
applicable
Complex Securities
Investment Funds
Foreign legal Not
BNP Paribas-Own Funds 0.23% 1,885,220 -264,150 0 1,885,220 0
entity applicable
Industrial Bank-Zhongtai
Xingwei Value-selected Not
Others 0.20% 1,602,727 -300,700 0 1,602,727 0
Complex Securities applicable
Investment Funds
China Construction
Bank-Zhongtai Yuanhe
Not
Value-selected Complex Others 0.20% 1,577,810 1,577,810 0 1,577,810 0
applicable
Securities Investment
Funds
ICBC-Rongtong Fund
Power Pionner Complex Not
Others 0.15% 1,217,603 1,217,603 0 1,217,603 0
Securities Investment applicable
Funds
ABC- CSI 500 Index
Not
Traded Securities Others 0.12% 928,121 928,121 0 928,121 0
applicable
Investment Funds
Industrial Bank-
Xingquan Trend
Not
Investment Complex Others 0.11% 880,070 -1,319,786 0 880,070 0
applicable
Securities Investment
Funds
Strategic investor or general corporate
investor who becomes top 10 shareholder
None
as a result of rights issue (if any) (see Note
3)
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds, China Merchants
Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds, Industrial Bank-Zhongtai
Explanation on the above-mentioned
Xingwei Value-selected Complex Securities Investment Funds, and China Construction Bank-Zhongtai Yuanhe
shareholder relationships or concerted
Value-selected Complex Securities Investment Funds belong to Zhongtai Fund. It is unknown whether other
actions
shareholders are associated with each other, and whether they are persons acting in concert as stipulated in the
Measures for the Administration of the Acquisition of Listed Companies.
Explanation on the above shareholders on
entrusting/entrusted voting rights and None
abstaining from voting rights
Special instructions on the existence of
At the end of the reporting period, the Company held a total of 9,817,500 shares in the Company's special stock
repurchase special accounts of the top 10
repurchase account.
shareholders (if any) (see Note 10)
Shareholdings of top 10 shareholders holding non-restricted shares
Number of non-restricted outstanding Type of share
Name shares held at the end of the reporting
period Type of share Share number
SEB INTERNATIONALE S.A.S 666,681,904 RMB common shares 666,681,904
74
2023 Annual Report of Zhejiang Supor Co., Ltd.
Hong Kong Securities Clearing Company Ltd. 68,728,932 RMB common shares 68,728,932
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex
6,913,640 RMB common shares 6,913,640
Securities Investment Funds
China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex
2,390,948 RMB common shares 2,390,948
Securities Investment Funds
BNP Paribas-Own Funds 1,885,220 RMB common shares 1,885,220
Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities
1,602,727 RMB common shares 1,602,727
Investment Funds
China Construction Bank-Zhongtai Yuanhe Value-selected Complex
1,577,810 RMB common shares 1,577,810
Securities Investment Funds
ICBC-Rongtong Fund Power Pionner Complex Securities Investment Funds 1,217,603 RMB common shares 1,217,603
ABC- CSI 500 Index Traded Securities Investment Funds 928,121 RMB common shares 928,121
Industrial Bank-Xingquan Trend Investment Complex Securities Investment
880,070 RMB common shares 880,070
Funds
Explanation on connected relationship or concerted parties among the top 10
shareholders holding non-restricted outstanding shares, and between the top
Same as above
10 shareholders holding non-restricted outstanding shares and top 10
shareholders
Information on top 10 common shareholders involved in securities margin
None
trading business (if any) (see Note 4)
Top 10 shareholders' involvement in shares lent out through securities financing
□ Applicable Not applicable
Changes of top 10 shareholders compared with that in the last period
Applicable □ Not applicable
Unit: share
Changes of top 10 shareholders compared with that at the end of the last period
Number of shares held by shareholders
Number of unrecovered shares let
New through general accounts and credit
out through securities financing at
increase/withdra accounts, and unrecovered shares lent out
Name of shareholder (full name) the end of the period
wal in the through securities financing
reporting period Proportion to total Proportion to total
Total quantity Total quantity
share capital share capital
Fidelity Mutual Fund & Investment
Withdraw 0 0.00% 0 0.00%
Management - Clients' Capital
BARCLAYS BANK PLC Withdraw 0 0.00% 0 0.00%
Yongan Guofu Asset Management-
Yongan Guofu-Yongfu No. 19 Withdraw 0 0.00% 0 0.00%
Complex Investment Privite Funds
China Construction Bank-Zhongtai
Yuanhe Value-selected Complex New 0 0.00% 0 0.00%
Securities Investment Funds
ICBC-Rongtong Fund Power
Pionner Complex Securities New 0 0.00% 0 0.00%
Investment Funds
ABC- CSI 500 Index Traded
New 0 0.00% 0 0.00%
Securities Investment Funds
Did the top 10 common shareholders and the top 10 common shareholders holding non-restricted shares conduct the agreed repurchase
transaction during the reporting period?
75
2023 Annual Report of Zhejiang Supor Co., Ltd.
□ Yes No
The top 10 common shareholders and the top 10 common shareholders holding non-restricted shares did not conduct the agreed
repurchase transaction during the reporting period.
2. Controlling shareholder
Property of controlling shareholder: foreign-controlled shareholding
Type of controlling shareholder: legal entity
Legal
Name of controlling Date of Organization
representative/person Main business operation
shareholder establishment code
in charge
Financial participation for all kinds of
French and overseas enterprises, i.e.,
purchasing and subscribing share capital,
bond, share and interests, securities and
negotiable securities, transfer of such
securities, participation in all financial
SEB activities related to the aforesaid financial
Thierry de LA TOUR December 26,
INTERNATIONALE None participation, purchasing, manufacturing
D'ARTAISE 1978
S.A.S and sales of all kinds of household devices
for the purpose of marketing and
involvement in related service; all activities
for helping realize the Company's operation
either directly or indirectly, particularly the
activities in personal estate, real estate,
finance, commerce and industrial field.
Shareholding of other
overseas listed
companies by the
None
Company's controlling
shareholder during the
reporting period
Change of controlling shareholder during the reporting period
□ Applicable Not applicable
No change of controlling shareholder occurred during the reporting period.
3. Actual controller and persons acting in concert
Nature of actual controller: other foreign organization
Type of actual controller: legal entity
Legal
Name of the actual Main business
representative/person Date of establishment Organization code
controller operation
in charge
Holding or equity
Thierry de LA TOUR participation and
SEB S.A. December 28, 1973 None
D'ARTAISE management for
various enterprises
Holding of other
overseas listed
companies by the None
Company's actual
controller during the
76
2023 Annual Report of Zhejiang Supor Co., Ltd.
reporting period
Change of actual controller during the reporting period
□ Applicable Not applicable
No change of actual controller occurred during the reporting period.
Property right and controlling relationship diagram between the Company and the actual controller
Actual controller controlling the Company by trust or other assets management types
□ Applicable Not applicable
4. The number of shares accumulatively pledged by the controlling shareholder or first majority shareholder
of the Company and its persons acting in concert account for 80% of the total number of shares held by it or
them.
□ Applicable Not applicable
5. Other corporate shareholders holding more than 10% shares
□ Applicable Not applicable
6. Share restriction reduction of commitment subjects such as controlling shareholder, actual controller and
the restructuring party
□ Applicable Not applicable
IV. Specific Implementation of Share Repurchase during the Reporting Period
Progress in the implementation of share repurchase
Applicable □ Not applicable
The proportion
of the number
of shares
Number of Proposed Number of
Proportion to Proposed repurchased to
Plan disclosure shares to be amount of Repurchase shares already
total share repurchase the underlying
time repurchased repurchase purpose repurchased
capital period shares involved
(shares) (RMB 10,000) (shares)
in the equity
incentive plan
(if any)
77
2023 Annual Report of Zhejiang Supor Co., Ltd.
Write-off and
decrease of the
8,067,087 - RMB registered
Expired on
March 31, 2023 16,134,174 1%-2% 491,527,600 - capital and the 8,150,000
April 25, 2024
shares 983,055,200 implementation
of equity
incentives
Progress in the reduction of shareholding of repurchased shares through auction
□ Applicable Not applicable
78
2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION VIII INFORMATION ON PREFERRED SHARE
□ Applicable Not applicable
No preferred share existed during the reporting period.
79
2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION IX BONDS
□ Applicable Not applicable
80
2023 Annual Report of Zhejiang Supor Co., Ltd.
SECTION X FINANCIAL STATEMENT
I. Audit report
Type of audit opinion Standard opinions with no reservation
Date of signature of audit report March 29, 2024
Name of audit organization KPMG Huazhen LLP (Special General Partnership)
Audit report document No. KPMG Huazhen Shenzi No. 2404032
Names of CPAs Huang Feng, Jin Yang
Main Text of Audit Report
All shareholders of Zhejiang Supor Co., Ltd.,
I. Opinion
We audited the attached financial statements of Zhejiang Supor Co., Ltd (hereinafter referred to as "Supor"), including the
consolidated and parent company balance sheet as of December 31, 2023, and the consolidated and parent company profit statement,
consolidated and parent company cash flow statement, consolidated and parent company statement of changes in shareholders' equities
and notes to relevant financial statements in 2022.
We think that the attached financial statements have been prepared in accordance with the provisions of the Accounting Standards
for Business Enterprises issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as "Accounting
Standards for Business Enterprises") in all major aspects, and fairly reflect Supor's consolidated and parent company financial condition
as of December 31, 2023, as well as the consolidated and parent company operating results and cash flows in 2023.
II. Basis of Forming Audit Opinions
We implemented our audit work strictly according to the stipulations of Auditing Standard for Chinese Certified Public
Accountants (hereinafter referred to as "Auditing Standard"). The content of "Responsibility of CPA for financial statement audit" in
the Audit Report further describes our responsibility under these standards. According to the Codes of Professional Ethics for Certified
Public Accountants in China, we are independent of Supor, and we have fulfilled the other responsibilities on the aspects of professional
ethics. We believe the audit evidences acquired by us are sufficient and appropriate, and provide a basis for expressing our audit
opinions.
III. Key audit matters
The key audit items are from our professional judgment; from our perspective, the key audit items are most important to the
financial statement audit in the current period. The key audit items will be audited under the background that the financial statement
will be wholly audited to form audit opinions; we do not express independent opinions on these items.
Revenue recognition
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Please refer to the accounting policies described in Note 27 to "V. Important Accounting Policies and Estimates" and Note 37
to "VII. Notes to items of consolidated financial statements" (Notes to the financial statements)
Key Audit Matters Countermeasures
Supor and its subsidiaries (hereinafter referred The audit procedures related to revenue recognition include the
to as "Supor") are mainly engaged in the R&D, following:
production and distribution of kitchen utensils, Understand and evaluate the design and operation
stainless steel products, daily hardware, small effectiveness of key internal control related to the revenue
recognition made by the management;
domestic appliances and cookware; its products are
Select sales contracts, check major terms governing the
cookware and small domestic appliances. In 2023,
transfer of commodity control right, and review if the
Supor's operating income reached RMB accounting policies for Supor revenue recognition is in
21,303,948,642.66, of which domestic sales revenue conformity with the requirements in Accounting Standards for
was RMB 15,107,615,309.80 and export sales Business Enterprises; Check if there are abnormal trading
terms and conditions that indicate potential undisclosed
revenue was RMB 6,196,333,332.86.
relations or transactions with related parties;
Supor recognizes the revenue when the control Use data analysis tools on Supor's transaction information to
right of relevant commodity is transferred to the identify those with abnormal revenues and check if there are
customer. Supor assesses the contract and business any potential undisclosed relations or major transactions with
arrangement of the customer, and recognizes the related parties;
commodity sales revenue after such commodity has Select major third-party customers and use enterprise
information query tool on their background information to
left Supor's own warehouse or its specified
identify if they have any relation with Supor;
warehouse, or such commodity has been delivered to
Select transactions of which the revenues are recorded in the
the customer with the acceptance receipt issued, or year, and refer to supporting documents such as the orders,
such commodity has been delivered on board to the invoices, packing lists, receipts of acceptance, customs
sea transport carrier with the customs declaration for clearances for export and bills of lading to check if the
export and bill of lading obtained. recognition of corresponding revenues is done according to
Supor accounting policies for revenue recognition;
As revenue is a KPI, and Supor has announced
Based on audit sampling, carry out the external confirmation
the Restricted Stock Incentive Plan in 2021 and procedure for the balance of accounts receivable of relevant
2022, Restricted Stock Incentive Plan and customers on the balance sheet date and the amount of sales
Performance Incentive Fund Plan in 2023 with transactions in the current year;
performance appraisal target as a premise for lifting Select transactions of which the revenue is accrued around the
the sales limitation, there is the risk that the balance sheet date, and refer to supporting documents such as
the delivery notices, bills of lading or receipts of the goods to
management manipulates the revenue for realizing check if the revenue is included in the right accounting period;
the performance target. Therefore, we include the
Check whether there are sales returns following the balance
conformation and recognition of Supor's revenue as sheet date, and check the relevant supporting documents (if
key auditing items. any) for significant sales returns, so as to evaluate whether the
revenue is recorded in the appropriate accounting period; and
Select revenue-related entries in the current year that meet specific risk
criteria, inquire the management about the reasons for making these
entries, and review relevant supporting documents.
IV. Other information
The management of Supor is responsible for other information. Other information includes the information covered by the 2023
Supor Annual Report, but excludes the financial statement and our audit report.
Our audit opinions on financial statement do not cover other information, and we do not express any authentication conclusions
on other information.
Integrated with our audit on financial statement, our responsibility is to read other information. In this process, we consider
whether the other information is significantly different from the information we will acquire from our audit or whether the other
information has significant error.
Based on the work we have already executed, if we confirm the other information has significant error, we should report the fact.
On this aspect, we do not need to report any items.
V. Responsibilities of Management and Governance on Financial Statement
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2023 Annual Report of Zhejiang Supor Co., Ltd.
The management of Supor (hereinafter referred to as the "management") is responsible for preparing financial statement according
to the stipulations of Accounting Standards for Business Enterprises to enable fair presentation, and designing, executing and
maintaining the required internal control to keep the financial statement free of material misstatement caused by fraudulent practice or
error.
When preparing the financial statement, the management is responsible for evaluating the continuing operation ability of Supor,
disclosing the items related to continuing operation (if any), and using going-concern assumption. Unless otherwise that Supor plans
to liquidate, terminates its operation or has no other realistic choice.
The governance is responsible for supervising the financial statement process of Supor.
VI. Responsibility of CPA for Financial Statement Audit
Our objective is to acquire rational guarantee for keeping the financial statement free of material misstatement caused by
fraudulent practice or error and providing the audit report containing audit opinions. The rational guarantee is a high-level guarantee,
but it cannot guarantee that a materials misstatement can be found if it exists when we audit according to the auditing standard. The
misstatement may be caused by fraudulent practice or error. If a single or summarized rational expectation on misstatement may cause
certain influence when financial statement user makes economic decision in accordance with the financial statement, the misstatement
will be deemed as "significant".
In the process of our audit according to the auditing standards, we used our professional judgment and retained our professional
skepticism. Meanwhile, we executed the following work:
(1)Identify and evaluate material misstatement risk of financial statement caused by fraudulent practice or error, design and
implement audit procedures to cope with these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit
opinions. A fraudulent practice may involve in collusion, counterfeit, deliberate omission, false statement or may be above the internal
control, so the risk that material misstatement caused by fraudulent practice may not be found is higher than the risk that material
misstatement caused by error may not be found.
(2) Learn internal control related to the audit for the purpose of designing proper audit procedures.
(3) Evaluate the appropriateness of the accounting policy selected by management and the rationality of the accounting estimate
and related disclosure made by the management.
(4) Make conclusion for the appropriateness of the continuing operation assumption used by management. Meanwhile, make
conclusions for the one whether there is significant uncertainty in the issue or item which may result in substantive doubt on the
continuing operation ability of Supor in accordance with the acquired audit evidences. If our conclusion thinks that there is significant
uncertainty, the auditing standard requires us to remind financial statement user in our audit report of paying attention to the related
disclosure in the financial statement. If the disclosure is not sufficient, we should present modified audit report. Our conclusion is based
on the information that is available by the audit report date. However future issue or circumstance may result in discontinuing operation
to Supor.
(5) Evaluate the overall presentation (including disclosure), structure and contents of financial statement, and evaluate whether
financial statement presents related transactions and items fairly.
(6) Acquire sufficient and appropriate audit evidences for financial information of entity activity or business activity of Supor,
and express opinions on audit financial statement. We are responsible for guiding, supervising and executing the audit of the Group,
and bear full responsibility for audit opinions.
We communicated audit scope, time schedule and significant audit finding and other issues with governance, including the
internal control defect that is worthy of noting in the audit process.
We have provided a declaration to the governance that we have abided by the professional ethics requirements related to
independency, and have communicated with the governance all relationships and other issues those are thought to affect our
independency, as well as the related precautionary measures (if applicable).
In the issue we communicated with the governance, we determined which issues are most important to the financial statement
audit in the current period, so which constitutes the key audit items. We described these items in our audit report, unless otherwise
83
2023 Annual Report of Zhejiang Supor Co., Ltd.
these items are prohibited to openly disclose by law and regulation, or under few circumstances, if according to an rational expectation,
when negative consequence of communicating an issue in the audit report may exceed its benefit on the aspect of public benefit, we
confirm that we will not communicate the issue in our audit report.
KPMG Huazhen LLP (Special General Partnership) Chinese CPA:
(Project partner): ________________
Huang Feng
Beijing, China Chinese CPA: ________________
Jin Yang
Date: March 29, 2024
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2023 Annual Report of Zhejiang Supor Co., Ltd.
II. Financial Statements
Unit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
December 31, 2023
Unit: RMB
Item December 31, 2023 January 1, 2023
Current assets:
Monetary capital 3,548,277,442.44 3,563,140,907.75
Settlement reserve
Loans to other banks
Transactional financial assets 351,137,787.54 431,382,527.79
Derivative financial assets
Notes receivable 15,311,935.98 27,325,952.95
Accounts receivable 2,858,247,356.03 1,926,518,118.38
Receivables financing 363,532,765.35 235,957,044.34
Advance payment 193,169,455.51 339,609,547.02
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 16,126,721.38 16,373,697.26
Including: interest receivable
Dividend receivable
Reverse-REPO financial assets
Inventories 2,262,683,387.31 2,494,922,856.42
Contract assets
Held-for-sale assets
Non-current assets due within one year 285,783,958.92 32,157,534.25
Other current assets 142,423,696.22 450,986,016.76
Total current assets 10,036,694,506.68 9,518,374,202.92
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment 665,522,383.56 1,024,794,890.43
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Long-term receivables
Long-term equity investment 61,678,984.35 62,196,139.53
Other equity instrument investments
Other non-current financial assets
Investment properties
Fixed assets 1,243,210,689.64 1,303,075,391.03
Construction in progress 26,862,380.61 12,005,654.73
Productive biological assets
Oil and gas assets
Right-of-use assets 223,503,573.14 190,718,962.82
Intangible assets 428,978,842.72 440,017,733.16
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 420,252,246.30 401,472,928.85
Other non-current assets
Total non-current assets 3,070,009,100.32 3,434,281,700.55
Total assets 13,106,703,607.00 12,952,655,903.47
Current liabilities:
Short-term borrowings 199,741,167.36
Central bank loan
Loans from other banks
Transactional financial liabilities
Derivative financial liabilities
Notes payable 1,235,000,000.00 1,057,611,900.00
Accounts payable 3,205,607,853.18 2,635,521,548.19
Advance receipt
Contract liabilities 862,706,076.18 1,153,932,879.53
Proceeds from sale of repurchase financial assets
Deposit taken and interbank deposit
Proceeds from security transaction agency
Proceeds from security underwriting agency
Employee remuneration payable 332,138,705.28 289,075,428.50
Taxes payable 346,462,733.51 204,608,713.27
86
2023 Annual Report of Zhejiang Supor Co., Ltd.
Other payables 147,617,550.27 137,729,222.63
Including: interest payable
Dividend payable
Handling fee and commission payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 47,568,255.43 41,924,940.24
Other current liabilities 147,652,214.40 194,699,612.98
Total current liabilities 6,524,494,555.61 5,715,104,245.34
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 177,281,125.36 150,779,916.58
Long-term payables
Long-term employee remuneration payable 15,836,573.16 1,441,111.55
Estimated liabilities 7,258,295.50 12,640,441.72
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 200,375,994.02 164,861,469.85
Total liabilities 6,724,870,549.63 5,879,965,715.19
Owners' equities:
Share capital 806,708,657.00 808,654,476.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 173,110,627.02 125,368,989.44
Minus: Treasury share 488,057,333.76 99,724,823.49
Other comprehensive incomes -19,176,454.59 -20,454,823.26
Special reserve
Surplus reserve 355,939,901.82 356,924,811.32
87
2023 Annual Report of Zhejiang Supor Co., Ltd.
General risk reserve
Undistributed profit 5,516,807,622.62 5,865,316,233.53
Total owners' equities belonging to parent company 6,345,333,020.11 7,036,084,863.54
Minority shareholders' equities 36,500,037.26 36,605,324.74
Total owners' equities 6,381,833,057.37 7,072,690,188.28
Total liabilities and owners' equities 13,106,703,607.00 12,952,655,903.47
Legal representative: Thierry de LA TOUR D' ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting
department: Xu Bo
2. Balance sheet of parent company
Unit: RMB
Item December 31, 2023 January 1, 2023
Current assets:
Monetary capital 1,992,971,901.60 1,484,137,518.26
Transactional financial assets 250,544,611.01 200,131,817.00
Derivative financial assets
Notes receivable 400,000.00 1,342,003.33
Accounts receivable 624,130,389.56 374,598,742.75
Receivables financing 4,800,000.00
Advance payment 16,615,946.99 46,224,404.38
Other receivables 674,127,502.50 1,174,381,191.82
Including: interest receivable
Dividend receivable
Inventories 145,018,340.32 164,679,339.53
Contract assets
Held-for-sale assets
Non-current assets due within one year 208,315,863.02 32,157,534.25
Other current assets 19,163,058.36 388,309,086.23
Total current assets 3,931,287,613.36 3,870,761,637.55
Non-current assets:
Debt investment
Other debt investment 201,645,863.02
Long-term receivables
Long-term equity investment 2,848,631,066.61 2,826,017,955.55
Other equity instrument investments
88
2023 Annual Report of Zhejiang Supor Co., Ltd.
Other non-current financial assets
Investment properties
Fixed assets 142,355,870.24 155,241,036.13
Construction in progress 973,451.33
Productive biological assets
Oil and gas assets
Right-of-use assets 3,583,014.87 3,752,480.47
Intangible assets 72,474,395.25 80,034,692.59
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 25,592,220.27 15,974,025.22
Other non-current assets
Total non-current assets 3,093,610,018.57 3,282,666,052.98
Total assets 7,024,897,631.93 7,153,427,690.53
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable 33,950,000.00 15,650,000.00
Accounts payable 211,009,320.51 193,807,274.54
Advance receipt
Contract liabilities 1,702,589.31 2,796,093.48
Employee remuneration payable 52,532,428.56 41,689,539.05
Taxes payable 54,783,273.55 23,453,381.53
Other payables 1,905,723,034.41 1,224,151,285.03
Including: interest payable
Dividend payable
Held-for-sale liabilities
Non-current liabilities due within one year 965,476.36 227,345.02
Other current liabilities 462,826.72 1,447,611.99
Total current liabilities 2,261,128,949.42 1,503,222,530.64
Non-current liabilities:
Long-term borrowings
89
2023 Annual Report of Zhejiang Supor Co., Ltd.
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 2,369,608.01 2,859,701.28
Long-term payables
Long-term employee remuneration payable 7,212,613.48 166,125.04
Estimated liabilities
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 9,582,221.49 3,025,826.32
Total liabilities 2,270,711,170.91 1,506,248,356.96
Owners' equities:
Share capital 806,708,657.00 808,654,476.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 249,621,368.24 202,697,741.40
Minus: Treasury share 488,057,333.76 99,724,823.49
Other comprehensive incomes
Special reserve
Surplus reserve 403,354,328.50 404,339,238.00
Undistributed profit 3,782,559,441.04 4,331,212,701.66
Total owners' equities 4,754,186,461.02 5,647,179,333.57
Total liabilities and owners' equities 7,024,897,631.93 7,153,427,690.53
3. Consolidated profit statement
Unit: RMB
Item 2023 2022
I. Total operating income 21,303,948,642.66 20,170,527,516.66
Including: Operating income 21,303,948,642.66 20,170,527,516.66
Interest revenues
Premium earned
Revenue from handling fees and commission
90
2023 Annual Report of Zhejiang Supor Co., Ltd.
II. Total Operating Costs 18,897,483,488.23 17,949,216,147.97
Including: Operating cost 15,700,128,849.31 14,969,328,840.57
Interest expense
Expense of handling fees and commission
Surrender value
Net payments for insurance claims
Net amount of withdrawn reserve fund for insured liability
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 142,250,651.43 130,693,539.41
Sales expenses 2,297,847,425.74 2,156,297,058.63
Administrative expenses 393,597,966.82 374,060,640.28
R&D expenses 431,288,536.29 416,259,356.99
Financial expenses -67,629,941.36 -97,423,287.91
Including: interest expenses 14,343,311.85 9,278,948.78
Interest revenues 80,404,233.22 76,571,126.41
Plus: Other incomes 248,917,540.31 236,694,812.34
Investment income ("-" for loss) 48,812,244.43 54,047,027.80
Including: investment income on associated enterprise and joint
-529,681.40 -3,262,848.85
venture
Income from derecognition of financial assets measured
by amortized cost
Exchange gain ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 1,137,787.54 1,382,527.79
Credit impairment loss ("-" for loss) -26,219,380.58 34,519,315.22
Asset impairment loss ("-" for loss) 6,271,490.06 -11,352,717.26
Assets disposal income ("-" for loss) -4,061,512.01 -1,363,504.85
III. Operating profit ("-" for loss) 2,681,323,324.18 2,535,238,829.73
Plus: Non-operating income 15,268,837.43 14,435,126.69
Minus: non-operating expense 11,873,706.91 4,464,352.44
IV. Total profit ("-" for total loss) 2,684,718,454.70 2,545,209,603.98
Minus: income tax expenses 505,298,017.49 479,033,164.36
V. Net profit ("-" for net loss) 2,179,420,437.21 2,066,176,439.62
(I) By business continuity
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2023 Annual Report of Zhejiang Supor Co., Ltd.
1. Net profit under continuing operation ("-" for net loss) 2,179,420,437.21 2,066,176,439.62
2. Net profit under discontinuing operation ("-" for net loss)
(II) By ownership
1. Net profit belonging to the shareholders of parent company 2,179,798,147.27 2,067,659,526.97
2. Minority shareholders' profit and loss -377,710.06 -1,483,087.35
VI. After-tax net amount of other comprehensive income 1,550,791.25 20,857,374.53
After-tax net amount of other comprehensive income belonging to the
1,278,368.67 21,067,718.34
owners of parent company
(I) Other comprehensive incomes that can not be reclassified into profit
and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive income that cannot be transferred to gain and
loss under the equity method
3. Changes in the fair value of other equity instrument investments
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes that can be reclassified into profit and
1,278,368.67 21,067,718.34
loss
1. Other comprehensive income that cannot be transferred to gain and
loss under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive
income
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial statement 1,278,368.67 21,067,718.34
7. Others
After-tax net amount of other comprehensive income belonging to minority
272,422.58 -210,343.81
shareholder
VII. Total comprehensive income 2,180,971,228.46 2,087,033,814.15
Total comprehensive income attributed to owners of parent company 2,181,076,515.94 2,088,727,245.31
Total comprehensive income attributed to minority shareholders -105,287.48 -1,693,431.16
VIII. Earnings per share
(I) Basic earnings per share (EPS) 2.719 2.565
(II) Diluted earnings per share (EPS) 2.719 2.564
If the enterprise under the same control is merged, the net profit realized by the merged party before merger was RMB 0, and the net
profit realized by the merged party during the prior period was RMB 0.
Legal representative: Thierry de LA TOUR D' ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting
department: Xu Bo
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2023 Annual Report of Zhejiang Supor Co., Ltd.
4. Profit statement of the parent company
Unit: RMB
Item 2023 2022
I. Operating income 2,800,805,334.77 2,364,560,278.23
Minus: Operating cost 2,370,968,026.25 1,989,102,797.37
Taxes and surcharges 11,856,409.25 13,935,411.50
Sales expenses 38,814,845.01 39,335,409.39
Administrative expenses 142,007,126.23 127,077,263.72
R&D expenses 8,598,131.92 20,695,875.79
Financial expenses -51,724,651.97 -58,101,403.25
Including: interest expenses 14,377,169.62 11,941,995.43
Interest revenues 70,180,881.22 56,076,101.26
Plus: Other incomes 19,729,508.39 24,058,763.78
Investment income ("-" for loss) 1,766,607,997.40 1,596,577,717.17
Including: investment income on associated enterprise and joint
-529,681.40 -3,262,848.85
venture
Income from derecognition of financial assets measured by
amortized cost ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 544,611.01 131,817.00
Credit impairment loss ("-" for loss) -5,681,450.92 16,808,778.58
Asset impairment loss ("-" for loss) 682,560.59 -715,941.15
Assets disposal income ("-" for loss) -33,004.39 -40,662.89
II. Operating profit ("-" for loss) 2,062,135,670.16 1,869,335,396.20
Plus: Non-operating income 5,940,618.29 484,196.66
Minus: non-operating expense 5,350,542.11 2,766,054.34
III. Total profit ("-" for total loss) 2,062,725,746.34 1,867,053,538.52
Minus: income tax expenses 83,072,248.78 59,409,208.43
IV. Net profit ("-" for net loss) 1,979,653,497.56 1,807,644,330.09
(I) Net profit under continuing operation ("-" for net loss) 1,979,653,497.56 1,807,644,330.09
(II) Net profit under discontinuing operation ("-" for net loss)
V. After-tax net amount of other comprehensive income
(I) Other comprehensive incomes that can not be reclassified into profit
and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive income that cannot be transferred to gain and
loss under the equity method
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2023 Annual Report of Zhejiang Supor Co., Ltd.
3. Changes in the fair value of other equity instrument investments
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes that can be reclassified into profit and
loss
1. Other comprehensive income that cannot be transferred to gain and
loss under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive
income
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial statement
7. Others
VI. Total comprehensive income 1,979,653,497.56 1,807,644,330.09
VII. Earnings per share
(I) Basic earnings per share (EPS)
(II) Diluted earnings per share (EPS)
5. Consolidated cash flow statement
Unit: RMB
Item 2023 2022
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of services 21,943,107,463.51 23,163,412,847.57
Net increase of customer deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash received from original insurance contract premium
Net cash received from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest, handling fees and commission
Net increase of loans from others
Net increment of repurchase capital
Net cash from security transaction agency
Tax refund received 356,790,351.15 403,826,573.61
Other cash receipts related to operating activities 267,893,712.24 296,671,425.19
Subtotal of cash inflows from operating activities 22,567,791,526.90 23,863,910,846.37
94
2023 Annual Report of Zhejiang Supor Co., Ltd.
Cash payments for purchasing commodities and receiving services 15,769,508,361.73 15,899,889,917.07
Net increment of customer loans and advances
Net increase of central bank deposit and interbank deposit
Cash payment for insurance indemnities of original insurance contracts
Net increase of loans to other banks
Cash for interest, handling fees and commission
Cash payment of policy dividend
Cash paid to and for employees 1,779,509,629.09 1,782,670,318.64
Taxes paid 1,028,954,311.82 1,115,969,533.28
Other cash expenses related to operating activities 1,954,909,888.06 1,905,425,831.54
Subtotal of cash outflows from operating activities 20,532,882,190.70 20,703,955,600.53
Net cash flows from operating activities 2,034,909,336.20 3,159,955,245.84
II. Net Cash Flows from Investing Activities:
Cash received from return of investments
Cash received from investment income 75,313,420.68 182,101,198.03
Net cash received from disposal of fixed assets, intangible assets and other
2,626,672.37 5,578,762.74
long-term assets
Net cash receipts from disposal of subsidiaries and other business units
Other cash receipts related to investing activities 2,738,215,081.02 3,103,136,438.00
Subtotal of cash inflows from investing activities 2,816,155,174.07 3,290,816,398.77
Net cash paid for the construction of fixed assets, intangible assets and
137,477,524.11 165,432,733.39
other long-term assets
Cash paid for investment
Net increase of pledge loans
Net cash paid for acquiring subsidiaries and other business units
Other cash expenses related to investing activities 2,923,123,711.63 3,597,439,490.93
Subtotal of cash outflows from investing activities 3,060,601,235.74 3,762,872,224.32
Net cash flows from investing activities -244,446,061.67 -472,055,825.55
III. Net Cash Flows from Financing Activities:
Cash from absorbing investments 2,630,661.84
Including: cash received by subsidiaries from minority shareholder
2,630,661.84
investment
Cash received from obtaining borrowings 198,504,388.57 6,000,990.92
Other cash receipts related to financing activities 79,000.00 2,463,000.00
Subtotal of cash inflows from financing activities 198,583,388.57 11,094,652.76
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of interest 2,439,504,228.21 2,567,723,592.43
95
2023 Annual Report of Zhejiang Supor Co., Ltd.
Including: dividends or profits paid by subsidiaries to minority
shareholders
Other cash payments related to financing activities 540,741,394.47 208,900,848.04
Subtotal of cash outflows from financing activities 2,980,245,622.68 2,776,624,440.47
Net cash flows from financing activities -2,781,662,234.11 -2,765,529,787.71
IV. Impact of Exchange Rate Changes on Cash and Cash Equivalents 1,019,143.56 29,831,440.74
V. Net increase in cash and cash equivalents -990,179,816.02 -47,798,926.68
Plus: Balance of cash and cash equivalents at the beginning of the period 2,395,932,752.38 2,443,731,679.06
VI. Balance of cash and cash equivalents at the end of the period 1,405,752,936.36 2,395,932,752.38
6. Cash flow statement of parent company
Unit: RMB
Item 2023 2022
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of services 2,675,975,306.62 2,813,612,098.09
Tax refund received 154,933,316.86 192,478,449.00
Other cash receipts related to operating activities 70,788,457.00 49,326,684.43
Subtotal of cash inflows from operating activities 2,901,697,080.48 3,055,417,231.52
Cash payments for purchasing commodities and receiving services 2,448,288,210.73 1,997,873,868.31
Cash paid to and for employees 170,100,393.05 179,500,705.78
Taxes paid 72,211,600.02 82,083,795.20
Other cash expenses related to operating activities 72,825,973.49 77,325,691.14
Subtotal of cash outflows from operating activities 2,763,426,177.29 2,336,784,060.43
Net cash flows from operating activities 138,270,903.19 718,633,171.09
II. Net Cash Flows from Investing Activities:
Cash received from return of investments
Cash received from investment income 1,788,640,317.70 1,787,538,717.80
Net cash received from disposal of fixed assets, intangible assets and other
603,663.57 863,939.72
long-term assets
Net cash receipts from disposal of subsidiaries and other business units 149,634,690.89
Other cash receipts related to investing activities 1,105,049,702.00 2,281,025,218.38
Subtotal of cash inflows from investing activities 2,894,293,683.27 4,219,062,566.79
Net cash paid for the construction of fixed assets, intangible assets and
23,182,198.26 30,951,887.39
other long-term assets
Cash paid for investment
Net cash paid for acquiring subsidiaries and other business units
Other cash expenses related to investing activities 1,465,412,274.03 3,117,694,762.51
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Subtotal of cash outflows from investing activities 1,488,594,472.29 3,148,646,649.90
Net cash flows from investing activities 1,405,699,210.98 1,070,415,916.89
III. Net Cash Flows from Financing Activities:
Cash from absorbing investments
Cash received from obtaining borrowings
Other cash receipts related to financing activities 1,297,348,085.21 1,227,206,126.98
Subtotal of cash inflows from financing activities 1,297,348,085.21 1,227,206,126.98
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of interest 2,454,574,408.09 2,580,043,028.70
Other cash payments related to financing activities 480,891,856.13 164,163,901.01
Subtotal of cash outflows from financing activities 2,935,466,264.22 2,744,206,929.71
Net cash flows from financing activities -1,638,118,179.01 -1,517,000,802.73
IV. Impact of Exchange Rate Changes on Cash and Cash Equivalents -2,235,360.05 10,981,710.82
V. Net increase in cash and cash equivalents -96,383,424.89 283,029,996.07
Plus: Balance of cash and cash equivalents at the beginning of the period 1,083,953,956.62 800,923,960.55
VI. Balance of cash and cash equivalents at the end of the period 987,570,531.73 1,083,953,956.62
7. Statement of Changes in Consolidated Owners' Equities
Amount of this period
Unit: RMB
2023
Owners' equities belonging to parent company
Minority Total
Item Other
Other equity instruments sharehold
Minus: General Undistrib owners'
Share Capital comprehe Special Surplus ers'
Treasury risk uted Others Subtotal equities equities
capital Preferred Perpetu reserves nsive reserve reserve
Others share reserve profit
share al bond incomes
I. Closing
-
Balance of 808,654, 125,368, 99,724,8 356,924, 5,865,31 7,036,084, 36,605,3 7,072,69
20,454,82
the Last 476.00 989.44 23.49 811.32 6,233.53 863.54 24.74 0,188.28
3.26
Year
Plus:
cumulative
changes of
accounting
policies
Er
ror
correction of
prior period
Ot
hers
97
2023 Annual Report of Zhejiang Supor Co., Ltd.
II. Opening
-
Balance of 808,654, 125,368, 99,724,8 356,924, 5,865,31 7,036,084, 36,605,3 7,072,69
20,454,82
the Current 476.00 989.44 23.49 811.32 6,233.53 863.54 24.74 0,188.28
3.26
Year
III. Current
Period - - - - - -
47,741,6 388,332, 1,278,368.
Increase ("-" 1,945,81 984,909. 348,508, 690,751,84 105,287. 690,857,
37.58 510.27 67
for 9.00 50 610.91 3.43 48 130.91
Decrease)
(I) Total of -
1,278,368. 2,179,79 2,181,076, 2,180,97
comprehens 105,287.
67 8,147.27 515.94 1,228.46
ive incomes 48
(II) Capital
- - - -
invested and 47,741,6 47,741,637 47,741,6
1,945,81 91,733,2 86,136,8 3,650,59
reduced by 37.58 .58 37.58
9.00 58.47 49.47 0.00
the owner
1. Common
shares
invested by
shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount
of share-
based
- - -
payment 47,741,6 47,741,637 47,741,6
75,750.0 3,726,34 3,650,59
recognized 37.58 .58 37.58
0 0.00 0.00
through
owners'
equities
- - -
4. Others 1,870,06 88,006,9 86,136,8
9.00 18.47 49.47
- - -
(III) Profit 85,151,9
2,524,65 2,439,504, 2,439,50
distribution 39.97
6,168.18 228.21 4,228.21
1.
-
Appropriati 85,151,9
85,151,9
on of surplus 39.97
39.97
reserve
2.
Appropriati
on of
general risk
reserve
3.
- - -
Appropriati
2,439,50 2,439,504, 2,439,50
on of profit
4,228.21 228.21 4,228.21
to owners
4. Others
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2023 Annual Report of Zhejiang Supor Co., Ltd.
(IV) Internal
carry-over
within
owners'
equities
1. Transfer
of capital
reserve to
capital (or
share
capital)
2. Transfer
of surplus
reserve to
capital (or
share
capital)
3. Surplus
reserve to
cover losses
4. Retained
earnings
after
carrying
over amount
of changes
in defined
benefit plan
5. Retained
earnings
after
carrying
over other
comprehens
ive incomes
6. Others
(V) Special
reserve
1.
Appropriati
on of current
period
2.
Application
of current
period
- -
480,065,
(VI) Others 480,065,76 480,065,
768.74
8.74 768.74
IV. Closing
-
Balance of 806,708, 173,110,6 488,057, 355,939, 5,516,80 6,345,333, 36,500,0 6,381,83
19,176,45
the Current 657.00 27.02 333.76 901.82 7,622.62 020.11 37.26 3,057.37
4.59
Period
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Amount of the prior period
Unit: RMB
2022
Owners' equities belonging to parent company
Minority
Item Total
Other equity instruments Other sharehold
Minus: General Undistrib owners'
Share Capital comprehe Special Surplus ers'
Treasury risk uted Others Subtotal equities
capital Preferred Perpetu reserves nsive reserve reserve equities
Others share reserve profit
share al bond incomes
I. Closing
-
Balance of 808,678, 122,970, 76,159,8 356,924, 6,451,74 7,622,639, 35,668,0 7,658,30
41,522,5
the Last 476.00 340.27 97.25 811.32 8,564.12 752.86 94.06 7,846.92
41.60
Year
Plus:
cumulative
changes of
accounting
policies
Er
ror
correction of
prior period
Ot
hers
II. Opening
-
Balance of 808,678, 122,970, 76,159,8 356,924, 6,451,74 7,622,639, 35,668,0 7,658,30
41,522,5
the Current 476.00 340.27 97.25 811.32 8,564.12 752.86 94.06 7,846.92
41.60
Year
III. Current
Period - - - -
2,398,64 23,564,9 21,067,7 937,230.
Increase ("-" 24,000.0 586,432, 586,554,88 585,617,
9.17 26.24 18.34 68
for 0 330.59 9.32 658.64
Decrease)
(I) Total of -
21,067,7 2,067,65 2,088,727, 2,087,03
comprehens 1,693,43
18.34 9,526.97 245.31 3,814.15
ive incomes 1.16
(II) Capital
- - - - -
invested and 2,398,64 2,630,66
24,000.0 69,991,3 86,368,2 14,002,308 11,371,64
reduced by 9.17 1.84
0 07.25 65.13 .71 6.87
the owner
1. Common
shares
invested by
shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount - - - - -
2,398,64
of share- 24,000.0 69,991,3 86,368,2 14,002,308 14,002,3
9.17
based 0 07.25 65.13 .71 08.71
100
2023 Annual Report of Zhejiang Supor Co., Ltd.
payment
recognized
through
owners'
equities
2,630,66 2,630,66
4. Others
1.84 1.84
- - -
(III) Profit
2,567,72 2,567,723, 2,567,72
distribution
3,592.43 592.43 3,592.43
1.
Appropriati
on of surplus
reserve
2.
Appropriati
on of
general risk
reserve
3.
- - -
Appropriati
2,567,72 2,567,723, 2,567,72
on of profit
3,592.43 592.43 3,592.43
to owners
4. Others
(IV) Internal
carry-over
within
owners'
equities
1. Transfer
of capital
reserve to
capital (or
share
capital)
2. Transfer
of surplus
reserve to
capital (or
share
capital)
3. Surplus
reserve to
cover losses
4. Retained
earnings
after
carrying
over amount
of changes
in defined
benefit plan
5. Retained
earnings
101
2023 Annual Report of Zhejiang Supor Co., Ltd.
after
carrying
over other
comprehens
ive incomes
6. Others
(V) Special
reserve
1.
Appropriati
on of current
period
2.
Application
of current
period
- -
93,556,2
(VI) Others 93,556,233 93,556,2
33.49
.49 33.49
IV. Closing
-
Balance of 808,654, 125,368, 99,724,8 356,924, 5,865,31 7,036,084, 36,605,3 7,072,69
20,454,8
the Current 476.00 989.44 23.49 811.32 6,233.53 863.54 24.74 0,188.28
23.26
Period
8. Statement of Changes in Owners' Equities of the Parent Company
Amount of this period
Unit: RMB
2023
Other equity instruments Minus: Other
Item
Capital Special Surplus Undistribut Total owners'
Share capital Treasury comprehens Others
Preferred Perpetua reserves reserve reserve ed profit equities
Others share ive incomes
share l bond
I. Closing
808,654,476. 202,697,74 99,724,823. 404,339,23 4,331,212,7 5,647,179,333.
Balance of the
00 1.40 49 8.00 01.66 57
Last Year
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Opening
808,654,476. 202,697,74 99,724,823. 404,339,23 4,331,212,7 5,647,179,333.
Balance of the
00 1.40 49 8.00 01.66 57
Current Year
III. Current - -
46,923,626. 388,332,51
Period Increase -1,945,819.00 -984,909.50 548,653,26 892,992,872.5
84 0.27
("-" for 0.62 5
102
2023 Annual Report of Zhejiang Supor Co., Ltd.
Decrease)
(I) Total of
1,979,653,4 1,979,653,497.
comprehensive
97.56 56
incomes
(II) Capital
- - -
invested and 46,923,626.
-1,945,819.00 91,733,258. 86,136,849. 3,650,590.0 46,923,626.84
reduced by the 84
47 47 0
owner
1. Common
shares invested
by shareholders
2. Capital
invested by other
equity instrument
holders
3. Amount of
share-based
- -
payment 46,923,626.
-75,750.00 3,726,340.0 3,650,590.0 46,923,626.84
recognized 84
0 0
through owners'
equities
- -
4. Others -1,870,069.00 88,006,918. 86,136,849.
47 47
- -
(III) Profit 85,151,939.
2,524,656,1 2,439,504,228.
distribution 97
68.18 21
-
1. Appropriation 85,151,939.
85,151,939.
of surplus reserve 97
97
2. Appropriation - -
of profit to 2,439,504,2 2,439,504,228.
owners 28.21 21
3. Others
(IV) Internal
carry-over within
owners' equities
1. Transfer of
capital reserve to
capital (or share
capital)
2. Transfer of
surplus reserve to
capital (or share
capital)
3. Surplus
reserve to cover
losses
4. Retained
earnings after
carrying over
amount of
changes in
103
2023 Annual Report of Zhejiang Supor Co., Ltd.
defined benefit
plan
5. Retained
earnings after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1. Appropriation
of current period
2. Application of
current period
-
480,065,76
(VI) Others 480,065,768.7
8.74
4
IV. Closing
806,708,657. 249,621,36 488,057,33 403,354,32 3,782,559,4 4,754,186,461.
Balance of the
00 8.24 3.76 8.50 41.04 02
Current Period
Amount of the prior period
Unit: RMB
2022
Other equity instruments Minus: Other
Item
Capital Special Surplus Undistribut Total owners'
Share capital Treasury comprehens Others
Preferred Perpetua reserves reserve reserve ed profit equities
Others share ive incomes
share l bond
I. Closing
808,678,476. 236,901,05 76,159,897. 404,339,23 5,141,307,9 6,515,066,852.
Balance of the
00 3.81 25 8.00 82.39 95
Last Year
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Opening
808,678,476. 236,901,05 76,159,897. 404,339,23 5,141,307,9 6,515,066,852.
Balance of the
00 3.81 25 8.00 82.39 95
Current Year
III. Current
- - -
Period Increase 23,564,926.
-24,000.00 34,203,312. 810,095,28 867,887,519.3
("-" for 24
41 0.73 8
Decrease)
(I) Total of
1,807,644,3 1,807,644,330.
comprehensive
30.09 09
incomes
104
2023 Annual Report of Zhejiang Supor Co., Ltd.
(II) Capital
- - -
invested and
-24,000.00 34,203,312. 69,991,307. 50,016,018. -14,252,023.55
reduced by the
41 25 39
owner
1. Common
shares invested
by shareholders
2. Capital
invested by other
equity instrument
holders
3. Amount of
share-based
- - -
payment
-24,000.00 34,203,312. 69,991,307. 50,016,018. -14,252,023.55
recognized
41 25 39
through owners'
equities
4. Others
- -
(III) Profit
2,567,723,5 2,567,723,592.
distribution
92.43 43
1. Appropriation
of surplus reserve
2. Appropriation - -
of profit to 2,567,723,5 2,567,723,592.
owners 92.43 43
3. Others
(IV) Internal
carry-over within
owners' equities
1. Transfer of
capital reserve to
capital (or share
capital)
2. Transfer of
surplus reserve to
capital (or share
capital)
3. Surplus
reserve to cover
losses
4. Retained
earnings after
carrying over
amount of
changes in
defined benefit
plan
5. Retained
earnings after
carrying over
other
105
2023 Annual Report of Zhejiang Supor Co., Ltd.
comprehensive
incomes
6. Others
(V) Special
reserve
1. Appropriation
of current period
2. Application of
current period
93,556,233.
(VI) Others -93,556,233.49
49
IV. Closing
808,654,476. 202,697,74 99,724,823. 404,339,23 4,331,212,7 5,647,179,333.
Balance of the
00 1.40 49 8.00 01.66 57
Current Period
III. Company Profile
Zhejiang Supor Co., Ltd (hereinafter referred to as "the Company") is a limited liability company (by shares) transformed on an
integral basis from Zhejiang Supor Cookware Co., Ltd under the approval of Leading Group for Enterprise Listing of the People's
Government of Zhejiang Province with No. ZSS [2000] 24 approval document. On November 10, 2000, the Company registered at
Zhejiang Administration for Industry and Commerce. Registered address: Yuhuan City, Zhejiang Province; head office address:
Hangzhou City, Zhejiang Province. The Company's parent company is SEB INTERNATIONALE S.A.S whose final parent company
is SEB S.A. The Company has a corporate business license numbered 913300007046976861.
The company and its subsidiaries (hereinafter referred to as "Supor") are mainly engaged in the R&D, production and distribution
of kitchen utensils, stainless steel products, daily hardware, small domestic appliances and cookware; its products are cookware and
small domestic appliances.
The financial statement was released after the approval of the Company's Board of Directors on March 29 2024.
By December 31, 2023, there were altogether 20 subsidiaries included in the scope of consolidated financial statement. See Note
X "Equity in Other Entities" for details.
IV. Preparation Basis of the Financial Statements
1. Preparation basis
The financial statements of the Group are prepared based on the assumption of continuing operation and actual transactions and
items and in accordance with the Accounting Standard for Business Enterprises -- Basic Standard (Released CZBL No.33, Revised
CZBL No.76) issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as the "Ministry of Finance"),
and 42 specific accounting standards, guidelines for the application of accounting standards for business enterprises, interpretations to
the accounting standards for business enterprises and other provisions released and revised on and after February 15, 2006 (hereinafter
referred to as accounting standards for business enterprises) and the disclosure provisions of the Regulations of Corporate Information
Disclosure and Preparation by Companies Publicly Issuing Securities No.15 -- General Provisions on Financial Reporting (Revised
in 2023) of the China Securities Regulatory Commission.
According to the relevant regulations of the accounting standards for business enterprises, the Group's accounting is made on
accrual basis. Except for certain financial instruments, measurements in these financial statements are made on the basis of historical
cost. If an asset is impaired, corresponding impairment provision will be made in accordance with relevant regulations.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
2. Continuing operation
The Company has the ability to continue operations for at least 12 months since the end of the reporting period, and there are no
major issues affecting the ability to continue operations.
V. Important Accounting Policies and Estimates
Prompt for specific accounting policies and estimates:
The Group has formulated several specific accounting policies and estimates based on the actual production and operation
characteristics and relevant accounting standards for enterprises.
When preparing financial statements, the group's management needs to use estimates and assumptions, which will affect the
application of accounting policies and the amounts of assets, liabilities, income, and expenses. The actual situation may differ from
these estimates. The management of the group continuously evaluates the key assumptions and uncertainties involved in the estimation,
and recognizes the impact of changes in accounting estimates in the current and future periods of the change. The group 's main
accounting estimates include depreciation and amortization of fixed assets and intangible assets (see notes V, 17, and 20), impairment
of various assets (see notes VII, 4, 6, 8, 13, and XIX, 1, and 2), recognition of deferred tax assets and liabilities (see notes VII, 17),
disclosure of fair value (see note XIII), and share based payments (see note XV).
1. Abidance of the statement of Accounting Standards for Business Enterprises
The financial statement conforms to the requirements of Accounting Standards for Business Enterprises and has reflected relevant
information such as the financial condition and consolidated financial condition as at December 31, 2023, and the operating result,
consolidated operating result, cash flow, and consolidated cash flow for the year of 2023, of the Company and Supor. In addition, the
financial statements of the Company and the Group conform to the disclosure requirements of the Regulations of Corporate Information
Disclosure and Preparation by Companies Publicly Issuing Securities No. 15 - General Provisions on Financial Reporting revised by
the China Securities Regulatory Commission (CSRC) in 2023 and related financial statements and their notes.
2. Accounting period
The accounting period of the Group is divided into annual period and interim period; an interim period refers to a reporting period
which is shorter than a whole fiscal year. The Group takes calendar year as the fiscal year, i.e., from January 1 to December 31.
3. Operating cycle
The normal operating cycle means the period from the time when the Group purchases the assets used for processing to the time
of realizing cash or cash equivalents. The Group takes 12 months as an operating cycle and uses it as a standard for classifying the
liquidity of assets and liabilities.
4. Recording currency
RMB is used in the main economic environment in which the Company and its domestic subsidiaries operate and the Company
and its domestic subsidiaries use RMB as the recording currency. Recording currency for foreign subsidiaries of the Company is
determined as VND, SGD and IDR separately based on the currency in main economic environment in which they operate. The Group
uses RMB as the recording currency to prepare the financial statement.
107
2023 Annual Report of Zhejiang Supor Co., Ltd.
5. Determination method and selection basis of significance standards
Applicable □ Not applicable
Item Significant standard
Significant accounts receivable written off
Important other debt investments
Significant construction in progress
5% of Profit before tax
Significant accounts payable with an aging of over 1 year
Significant not wholly-owned subsidiaries
Significant joint venture or associated enterprises
6. Accounting treatment method for the enterprise merger under and not under the same control
Enterprise merger refers to the transaction or events of two or more separate enterprises combing into a reporting entity. Enterprise
merger is divided into the enterprise merger under the same control and enterprise merger not under the same control.
For transactions not under the same control, the purchasing party will consider whether to choose the simplified judgment method
of "concentration test" when judging whether the acquired asset portfolio constitutes a business. If the portfolio passes the concentration
test, it is judged that it does not constitute a business. Otherwise, it shall still be judged in line with business conditions.
When the Group acquires a group of assets or net assets that do not constitute a business, the purchase cost shall be allocated on
the basis of the relative fair value of the identifiable assets and liabilities acquired on the purchase date, and shall not be treated as per
the following accounting treatment methods for enterprise merger.
(1) Enterprise merger under the same control
If enterprises involved with merger are under the final control of the same party or same multiple parties before and after merger,
and for a non-temporary period, then it belongs to an enterprise merger under the same control. The assets and liabilities obtained by
the merging party shall be measured on the basis of book value of the merged party on the merger date. As to the difference between
the book value of net assets acquired by merging party and the book value of merger consideration paid by it (or total amount of the
face value of shares issued), the capital reserve (share capital premium) shall be adjusted correspondingly; the retained earnings will
be adjusted as long as capital reserve (share capital premium) is insufficient to be offset.The merging party's direct expenses incurred
from enterprise merger shall be recognized through current profits and losses at the time of occurrence. The merger date refers to the
day when the merging party actually obtains the control rights of the merged party.
(2) Enterprise merger not under the same control
If enterprises involved with merger are not under the final control of the same party or same multiple parties before and after
merger, then it belongs to an enterprise merger not under the same control. For enterprise merger not under the same control, the party
which has obtained the control rights for other combining enterprises on the purchase date will be considered as the purchasing party,
and other participating enterprise is the purchased party. The purchase date refers to the day when the purchasing party obtains the
control right over the purchased party.
As for enterprise merger not under the same control, the merger costs include the assets paid by the purchasing party, the liabilities
accrued and assumed, as well as the fair value of equity securities issued for obtaining purchased party's control right on the purchase
date; the intermediary fees, such as auditing, legal service and evaluation and consulting, and other related administrative expenses for
the enterprise merger shall be recognized through current profits and losses at the time of occurrence. Transaction cost of equity
securities or debt securities issued by the purchasing party as merger consideration shall be recognized through initial recognition
amount of the equity securities or debt securities. Contingent consideration involved shall be recognized through merger cost according
to the fair value at the purchase date; if new or further proofs appearing within 12 months after the purchase date show that the
108
2023 Annual Report of Zhejiang Supor Co., Ltd.
contingent consideration needs to be adjusted, the merger goodwill shall be adjusted correspondingly. The merger costs incurred by
the purchasing party and the identifiable net assets obtained in the merger shall be measured at the fair value on the purchase date. The
amount of the merger cost larger than the fair value of identifiable net assets of the purchased party acquired by it on the purchase date
shall be recognized as goodwill. If the merger cost is lower than the fair value of identifiable net assets of the purchased party obtained
during merging, the measurement of the identifiable assets of the purchased party obtained, liabilities or fair value of contingent
liabilities and the merger costs shall be reviewed firstly. If the merger cost is still lower than the fair value of identifiable net assets of
the purchased party obtained during merger, the difference shall be recognized through current profits and losses.
If the deductible temporary difference of the purchased party gained by purchasing party fails to be confirmed on the purchase
date due to the inconformity of the recognition condition of deferred income tax assets, and in case new or further information obtained
indicates that the relevant conditions on the purchase date have existed within 12 months after the purchase date, and it is predicted
that the economic benefits brought by the purchased party from deductible temporary differences can be realized on the purchase date,
relevant deferred income tax assets shall be confirmed, at the same time, the goodwill shall be reduced; if the goodwill is insufficient
for offset, the differential part shall be confirmed as the current profits and losses; except for above conditions, in case the deferred
income tax assets are confirmed to be related to the enterprise merger, they shall be recognized through current profits and losses.
As for the enterprise merger not under the same control realized step by step through multiple transactions, it shall judge whether
the multiple transactions belong to the "package deal" according to No. 5 Notice About Printing and Issuing Accounting Standards for
Business Enterprises Explanation in Ministry of Finance (CK [2012] No. 19) and the judgment standard (refer to the Note V 7 "
Judgment criteria of control, and preparation method for consolidated financial statements " (2)) about "package deal" in Article 51 of
the Accounting Standards for Business Enterprises No. 33 -- Consolidated Financial Statement. If the multiple transactions belong to
the "package deal", refer to the above descriptions of the part and Note V 16 "Long-term Equity Investment" to conduct the accounting
treatment; for those not belonging to "package deal", it shall distinguish individual financial statements and consolidated financial
statements to conduct relevant accounting treatment.
The sum of book value of the purchased party's equity investment held prior to the purchase date and the newly investment cost
on the purchase date in individual financial statements shall be regarded as the initial investment cost of such investment; in case that
the equity of the purchased party held before the purchase date is involved in other comprehensive incomes, when disposing of the
investment, other comprehensive income related shall be transferred to the current investment income.
In consolidated financial statements, the equity of the purchased party held before the purchase date shall be measured again
according to the fair value of the equity at the purchase date, and the difference between fair value and its book value shall be recognized
through current investment income; in case that equity of the purchased party held before the purchase date is involved in other
comprehensive incomes, other comprehensive income related shall be transferred to the current investment income on the purchase
date.
7. Judgment criteria of control, and preparation method for consolidated financial statements
(1) Principles for defining the scope of consolidated financial statement
The scope of the consolidated financial statements is control-based. Control refers to that Supor has the right in an investee which
allows it to enjoy variable returns by participating relevant activities of such investee and to use such right to influence the amount of
such returns. In determining whether the Group has control over an investee, the Group considers substantive rights related to the
investee (including substantive rights held by the Group itself and those held by other parties). The financial condition, operating results,
and cash flows of the subsidiaries are included in the consolidated financial statements from the date control commences to the date
control ceases. The consolidation scope shall include the Company and all its subsidiaries, and "subsidiaries" refers to the bodies under
the control of Supor.
Supor will re-evaluate the situation once the change in relevant facts and circumstances affects the factors involved in the above
definition of control.
(2) Preparation method for consolidated financial statements
109
2023 Annual Report of Zhejiang Supor Co., Ltd.
From the date of obtaining actual control right of the subsidiaries' net assets and production operation decision, the Group will
begin to bring it into the merger scope; subsidiaries will not be recognized through merger scope from the date when the Company
loses its actual control right. As for the disposed subsidiaries, the operating results and cash flow before disposal date have been
properly recognized through consolidated profit statement and consolidated cash flow statement; as for subsidiaries disposed in the
current period, the opening balance of the consolidated balance sheet will not be adjusted. As for the subsidiary increased due to the
enterprise merger not under the same control, its operating results and cash flow after the purchase date have been properly recognized
through consolidated profit statement and consolidated cash flow statement, and the opening balance and contrast balance of the
consolidated financial statement shall not be adjusted. As for the subsidiary increased due to the enterprise merger under the same
control and the merged party under consolidation by merger, the operating results and cash flow from the beginning of the current
period of the merger to the merger date have been properly recognized through consolidated profit statement and the consolidated cash
flow statement, and the contrast balance of the consolidated financial statement shall be adjusted simultaneously.
When consolidated financial statements are prepared, in case the accounting policies or accounting periods employed by the
subsidiary and the Company are different, it's required to make necessary adjustment on the subsidiary's financial statements according
to the Company's accounting policy and accounting period. As to the subsidiary acquired by the enterprise merger not under the same
control, it's required to adjust its financial statements on the basis of fair value of identifiable net assets at the purchase date.
All significant current balance and transaction and unrealized profits in the Group are offset in the preparation of consolidated
financial statement.
The shareholders' equities and current net profits or losses of subsidiaries that do not belong to the part owned by the Company,
shall be separately listed in the shareholders' equities and minority shareholders' profit and loss in the consolidated financial statement
as the minority shareholders' equities and profits and losses. The share in the current net profit or loss of the subsidiary that belongs to
minority shareholders' equities shall be set out as "minority shareholders' profit and loss" under net profit in the consolidated profit
statement. In case the losses of the subsidiary shared by minority shareholders exceed the share that shall be enjoyed by minority
shareholders in the subsidiary's shareholders' equities at the beginning of period, they shall be offset with minority shareholders' equities.
In case of losing the control right for the original subsidiary due to disposal of partial equity investment or other reasons, the
residual equity shall be measured again according to the fair value at the date when the control right is lost. The difference between the
sum of the consideration acquired by equity disposal and the fair value of residual equity and the share of net assets of the original
subsidiary that shall be enjoyed and is calculated continuously from the purchase date according to the original shareholding ratio shall
be recognized through investment income of the current period when the control right is lost. As for other comprehensive income which
relate to the equity investment of the original subsidiaries, when the control right is lost, the accounting treatment shall be carried out
on the same basis as the subsidiary's direct disposal of relevant assets or liabilities. Thereafter, the residual equity of this part shall be
further measured in accordance with Accounting Standards for Business Enterprises No. 2 -- Long-term Equity Investment or
Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial Instruments. See Note V 16
"Long-term Equity Investment" or Note V 10 "Financial Instruments" for details.
If the Group disposes the equity investment of subsidiary step by step via multiple transactions until losing the control right, it is
necessary to distinguish whether transactions for disposal to the equity investment of subsidiary until losing the control right belong to
the package deal. When the disposal of the articles, conditions and the economic impact of various transactions for the equity investment
of the subsidiary is subject to one or more of the following conditions, it generally indicates that it shall conduct accounting treatment
by taking the multiple transactions as a package deal: ① These transactions are considered to be concluded at the same time or made
in the case of considering mutual influence; ② These transactions as a whole can reach a complete business result; ③ The occurrence
of a transaction depends on the occurrence of at least one other transaction; ④ One transaction alone is not economical, but when being
considered together with other transactions, it is economical. If it is not package deal, every transaction will be conducted by the
accounting treatment according to the following suitable principles, namely, "partially dispose the long-term equity investment of
subsidiary when the control right is not lost" (See Note V 16 "Long-term Equity Investment" (2) (d)) and "lose the control right for the
original subsidiary due to disposal of partial equity investment or other reasons" (see previous paragraph) for details. If the disposal of
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2023 Annual Report of Zhejiang Supor Co., Ltd.
transactions on subsidiaries' equity investments until loss of control right is a package deal, they are regarded as a transaction that
disposes the subsidiary and loses the control right; however, the difference between each disposal price and the subsidiary's net asset
share enjoyed corresponding to disposing investment before loss of control right shall be recognized as other comprehensive incomes
in the consolidated financial statements, which will be transferred into the current investment profits and losses on investments of
losing the control right when the control right is lost.
8. Determining standards for cash and cash equivalents
Cash and cash equivalents of the Group includes cash on hand and the deposit that can be used for making payment at any time
as well as investments that are held by the Group, have a short term (generally mature within 3 months since the purchase date) and
strong liquidity, can be converted into the cash of known amount easily, and have small risks in value change.
9. Foreign currency business and foreign currency statement conversion
(1) Conversion method for foreign currency transactions
After initial recognition, the foreign currency transactions occurring in the Group are converted into recording currency amounts
at the spot rate prevailing on the transaction date (usually the central parity of the exchange rate quoted on the day of issuance by the
People's Bank of China, the same below).
(2) Conversion method for foreign currency monetary items and foreign currency non-monetary items
For the balance sheet date, the spot rate on the balance sheet date will be adopted in the conversion of the foreign currency
monetary items. In terms of the resulting exchange differences: ① The exchange difference of special foreign currency borrowings
related to acquiring and constructing assets which meet capitalization conditions is disposed on the principle of the capitalization of
borrowing expense; and ② foreign currency monetary items at fair value through other comprehensive incomes, except that the
exchange difference created by other book balance changes other than by amortized costs (including decrease in value) is recognized
through other comprehensive incomes, are recognized through current profits and losses.
As to foreign currency non-monetary items measured by historical cost, the amount in the recording currency converted at the
spot rate on the transaction date is still employed for measurement; as to foreign currency non-monetary items measured by fair value,
it's required to employ the spot rate at the fair value confirmation date for conversion, and the resulting exchange difference belongs to
the difference of equity instrument investment at fair value through other comprehensive incomes, and is recognized through other
comprehensive income or recognized through other comprehensive incomes; other differences are recognized through current profits
and losses.
(3) Conversion of foreign currency financial statement
The foreign currency financial statement of overseas business is converted to RMB statement with the following method: the
assets and liabilities in the balance sheet shall be converted based on the spot rate on the balance sheet date; as for shareholders' equities,
except the "undistributed profits", other items shall be converted by the spot rate on the date of occurrence. Items under income and
expense in the profit statement shall be translated according to the spot rate at the transaction date. The undistributed profits at the
beginning of the year is the year-end undistributed profit after conversion of last year; the period-end undistributed profit is calculated
and presented according to the profit distribution of each item after conversion; the balance of the total amount among the assets and
liabilities as well as shareholders' equities after conversion serves as "conversion difference in foreign currency statement" and is
recognized as other comprehensive income; For disposal of overseas business and the loss of control right, the conversion difference
in foreign currency statement related to the overseas business and presented under the shareholders' equities in the balance sheet is
transferred wholly or according to the disposal ratio of the overseas business into the current disposal profits and losses.
Foreign cash flows and cash flows of subsidiaries overseas are converted based on spot rate on the occurring date of cash flows.
The influenced amount of changes in the exchange rate on cash is listed separately in the cash flow statement as an adjustment item.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
The beginning amount and actual amount of the year shall be presented according to the amount after conversion of financial
statement of last year.
In case of loss of control right of overseas business due to disposal of the Group's entire owners' equities in overseas business, or
the disposal of partial equity investment or other reasons, the foreign currency conversion difference listed in the shareholders' equities
items in the balance sheet, related to the overseas business and attributable to owners' equities belonging to parent company shall be
totally converted into the current disposal profits and losses.
In case of decrease of the ratio of overseas business, but no loss of control right due to disposal of partial equity investment or
other reasons, the conversion difference related to the disposal of part of related currency in the overseas business shall be attributable
to the minority shareholders' equities, and not converted into the current profits and losses.
If there are any foreign currency monetary items that substantially constitute net investment in overseas businesses, the exchange
difference generated due to the change in exchange rate in the consolidated financial statements shall be determined to other
comprehensive incomes as "conversion difference in foreign currency statements"; when disposing overseas business, it shall be
recognized through current disposal profits and losses.
10. Financial instruments
When the Group becomes one party of financial instrument contract, it's required to recognize financial assets or financial
liabilities.
(1) Classification, recognition and measurement of financial assets
Based on the business mode for managing financial assets and the contractual cash flow characteristics of financial assets, the
Group divides the financial assets into: financial assets measured by amortized cost, financial assets at fair value through other
comprehensive incomes, financial assets at fair value through current profits and losses
The business mode of the Company's management of financial assets means that how the Group manages its financial assets so
as to generate cash flows. Through business mode, it can be determined that whether the cash flow of financial assets managed by the
Group is from the collection of contractual cash flow, sales of financial assets, or both. The Group, based on the objective fact and
specific business objective of financial asset management determined by key management personnel, makes decisions on the business
mode for managing financial assets.
The Group evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash flow
generated by the relevant financial assets on the specific date is only payment of principal and interests for outstanding principal amount.
Wherein, the principal refers to the fair value of financial assets at initial recognition; interest includes consideration of the time value
of money, the credit risk related to the outstanding principal amount for a specific period, and other basic borrowing risks, costs, and
profits. Furthermore, the Group evaluates the contract terms and conditions that are likely to cause changes in the distribution of time
or amount of the contractual cash flow of financial assets, to determine whether the terms satisfy the requirements of the above
contractual cash flow characteristics.
Unless the Group changes its business mode for managing financial assets, all affected related financial assets are reclassified on
the first day of the first reporting period after the change of business mode, otherwise, financial assets cannot be reclassified after initial
recognition.
Financial assets shall be measured by fair value during initial recognition. As to financial assets at fair value through current
profits and losses, related transaction cost shall be recognized through current profits and losses directly; as to other categories of
financial assets, related transaction cost shall be recognized through initial recognition amount. Accounts receivable or notes receivable
that are from sale of products or rendering of services, and do not include or take into account significant financing parts are taken as
initial recognition amount by the Group based on the consideration amount that the Group is entitled to receive.
(a) Financial assets measured by amortized cost
The business mode of the Group to manage financial assets measured by amortized cost is aimed at receiving contractual cash
flows; the contractual cash flow characteristics of such financial assets are consistent with basic loan arrangements, that is, cash flows
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generated at specific date are only payment of principal and interests for outstanding principal amount. Effective interest method is
used by the Group to carry out subsequent measurement of such financial asset according to the amortized cost, and the gains or losses
arising from amortization and impairment are recognized through current profits and losses.
(b) financial assets at fair value through other comprehensive incomes
The business mode of the Group to manage such financial assets is aimed at receiving contracted cash flows as well as sales; the
contractual cash flow characteristics of such financial assets are consistent with basic loan arrangements. The Group measures such
financial assets measured at fair value through other comprehensive incomes, but impairment losses or gains, exchange profits and
losses, and interest revenue calculated based on effective interest method are recognized through current profits and losses. When the
financial asset is derecognized, the accumulated gains or losses previously recognized through other comprehensive income shall be
transferred out of other comprehensive income and recognized through current profits and losses.
In addition, for investments in non-transactional equity instruments, the Group can irrevocably designate them as financial assets
at fair value through other comprehensive incomes upon initial recognition. The designation is made on a single investment basis, and
the relevant investment meets the definition of equity instrument from the issuer's point of view. The Group includes the related
dividend income of such financial assets into the current profits and losses with the change in fair value recognized through other
comprehensive income. When the financial asset is derecognized, the accumulated gains or losses previously recognized through other
comprehensive income shall be transferred into retained earnings and recognized through current profits and losses.
(c) Financial assets at fair value through current profits and losses
The Group recognizes foregoing financial assets measured by amortized cost and that are not financial assets at fair value through
other comprehensive incomes as financial assets at fair value through current profits and losses. In addition, during initial recognition,
in order to eliminate or significantly reduce accounting mismatches, the Group designates part of the financial assets at fair value
through current profits and losses. As to such financial assets, subsequent measurement shall be carried out by the Group based on fair
value, and the resulting gains or losses (including interest and dividend income) are recognized through current profits and losses,
unless the financial asset is part of the hedging relationship.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities are classified as financial liabilities at fair value through current profits and losses, financial guarantee
liabilities and other financial liabilities upon initial recognition. As to financial liabilities at fair value through current profits and losses,
related transaction cost shall be recognized through current profits and losses directly; as to other financial liabilities, related transaction
cost shall be recognized through initial recognition amount.
(a) Financial liabilities at fair value through current profits and losses
Financial liabilities at fair value through current profits and losses include transactional financial liabilities (including derivatives
belonging to financial liabilities) and financial liabilities that are designated to be measured at fair value with changes recognized
through current profits and losses during initial recognition.
Transactional financial liabilities (including derivatives belonging to financial liabilities) are measured subsequently at fair value
and except for those related to hedge accounting, changes in fair value are recognized through current profits and losses.
For financial liabilities at fair value through current profits and losses, changes in their fair value caused by changes in the Group's
own credit risk are recognized through other comprehensive income, and when such liabilities are stopped to be recognized,
accumulated changes in their fair value caused by changes in the Group's own credit risk that is recognized through other comprehensive
income are transferred to retained earnings. Other changes in fair value are recognized through current profits and losses. If the
treatment of impact of changes in credit risk of these financial liabilities in the above manner will cause or expand accounting
mismatches in profit or loss, the Group will include all gains or losses of such financial liabilities (including impact of changes in the
Company's own credit risk) into the current profits and losses.
(b) Financial guarantee liabilities
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A financial guarantee contract refers to a contract that requires the Group to pay a specific amount to the contract holder who has
suffered a loss when the specific debtor fails to pay the debt in accordance with the original or modified terms and conditions of the
debt instrument at maturity.
After initial recognition, the income related to the financial guarantee contract is apportioned and recognized through current
profits and losses in accordance with the accounting policies mentioned in Note V. 27 "Revenue". Financial guarantee liabilities are
subsequently measured according to the higher of the loss provision amount determined according to the impairment principle of
financial instruments and the balance of its initial recognition amount after deducting the accumulated amortization amount of income
related to financial guarantee contracts.
(c) Other financial liabilities
In addition to financial liabilities and financial guarantee contracts as a result of financial asset transfers that are not in line with
derecognition condition or continuous involvement in transferred financial asset, other financial liabilities are classified as financial
liabilities measured at amortized cost and measured subsequently at amortized cost, and gains or losses arising from derecognition or
amortization of such liabilities are recognized through current profits and losses
(3) Recognition basis and measurement method of the transfer of financial assets
If financial assets meet one of the following conditions, derecognition of such financial assets will be carried out: ① the contractual
right to receive cash flow from the financial assets is terminated; ② the financial assets have been transferred and almost all the risks
and rewards in the ownership of the financial assets are transferred to the transferee; ③ the financial assets have been transferred and,
although the Group has neither transferred nor retained almost all risks and rewards in the ownership of the financial assets, it has
waived its control over the financial assets.
If the Group neither transfers nor retains almost all the risks and rewards in the ownership of the financial assets and does not
relinquish control over the financial assets, the financial assets shall be recognized according to the degree of continuous involvement
of the financial assets transferred, and the relevant liabilities shall be recognized accordingly. Degree of continuous involvement of the
financial assets transferred is the risk level of the Group due to changes in value of such financial assets.
In case whole transfer of financial assets satisfies the derecognition condition, the difference between the sum of the book value
of financial assets transferred and consideration received due to the transfer and the sum of changes in fair value original recognized
through other comprehensive income shall be recognized through current profits and losses.
In case partial transfer of financial assets satisfies the derecognition condition, book value of the financial assets transferred shall
be amortized between the derecognition part and the part without derecognition according to their own fair value, and the difference
between the sum of the consideration received for the transfer and accumulated amount of the change in fair value to be amortized to
derecognition part and originally recognized through other comprehensive income, and the foregoing book value amortized shall be
recognized through current profits and losses.
For financial assets sold with right of recourse, or to transfer financial assets by endorsement, the Group needs to determine
whether almost all risks and rewards related to ownership of such financial assets have been transferred. If almost all risks and rewards
related to the ownership of such financial assets are transferred to the transferee, derecognition of such financial assets shall be
conducted; derecognition of such financial assets should not be conducted if the risks and rewards related to the ownership of such
financial assets are reserved; if the risks and rewards related to the ownership of such financial assets are not transferred nor reserved,
it needs to determine whether the Company keeps its control over such assets and make accounting treatment based on principles as
described in the foregoing paragraphs.
(4) Derecognition of financial liabilities
In case the current obligations of financial liabilities (or part of the financial liabilities) have been terminated, the Group will carry
out derecognition of such financial liabilities or part of them. In case the Group (borrower) signs an agreement with the debtor to
replace the original financial liabilities by means of bearing new financial liabilities, and contract clauses related to the new financial
liabilities and original financial liabilities are different in essence, it's required to carry out derecognition of original financial liabilities
and recognize the new financial liabilities simultaneously. If the Group substantially modifies the contract terms and conditions of the
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original financial liability (or part of it), the original financial liability is derecognized and a new financial liability is recognized in
accordance with the revised terms and conditions.
In case derecognition is carried out for the whole or part of financial liabilities, the difference between their book value and the
consideration paid (including non-cash assets transferred out or liabilities assumed) shall be included by the Group in the current profits
and losses.
(5) Offset of financial assets and financial liabilities
In case the Group has the legal right of offsetting the financial assets and financial liabilities recognized and such legal right is
executable now, and the Group plans to carry out settlement by net amount or realize the financial assets and pay off the financial
liabilities simultaneously, the net amount after mutual offset of such financial assets and financial liabilities shall be set out in the
balance sheet. Otherwise, financial assets and financial liabilities shall be set out in the balance sheet respectively and will not be offset
mutually.
(6) Equity instruments
An equity instrument refers to a contract that can prove the ownership of residual interest in assets after the Group deducts all
liabilities. The Group's issuing (including refinancing), repurchase, sale or cancellation of equity instruments are treated as changes in
equity, and transaction costs related to equity transactions are deducted from equity. The Group does not determine changes in fair
value of equity instruments.
Distribution of dividends (including "interest" from instruments classified as equity instruments) from the equity instruments
during the duration of the Group is treated as profit distribution.
11. Financial assets impairment
Supor needs to recognize the financial assets with impairment losses as financial asset measured at amortized costs and debt tools
at fair value through other comprehensive incomes, including mainly notes receivable, accounts receivable, receivables financing, other
receivables and other debt investments. Moreover, for contract assets and some financial guarantee contracts, the impairment provision
shall be accrued and the credit impairment loss shall be recognized pursuant to the accounting policy set forth herein.
(1) Recognition method of impairment provision
The above items are accrued for impairment provision and credit impairment losses by the Group in accordance with applicable
expected credit loss measure methods (general or simplified) based on the expected credit loss.
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of default. Credit
loss refers to the difference between all contractual cash flows discounted as per the original effective interest rate and receivable from
the contract and all cash flows expected to be received by the Group, namely, the present value of a shortage of cash. Wherein, the
purchased or underlying financial assets with credit impairment of the Group shall be discounted as per effective interest rate based on
credit adjustment.
The general method for measuring expected credit loss is as follows, the Group evaluates whether credit risk of financial assets
(including contract assets and other applicable items, the same below) has remarkably increased after initial recognition on each balance
sheet date. In case of credit risk having remarkably increased after initial recognition, the Group will measure loss provision as per the
amount equivalent to expected credit loss in the entire duration; in case of credit risk failing to remarkably increase after initial
recognition, the Group will measure loss provision as per the amount equivalent to expected credit loss in the next 12 months. At the
time of evaluating expected credit loss, the Group considers all reasonable and well-founded information, including forward-looking
information.
When the expected credit loss is measured, the longest period to be considered by the Group is the longest contract period when
the enterprise faces the credit risk (including considering the renewal option). The expected credit loss of the entire duration refers to
the expected credit loss arising from all possible events of default regarding financial instrument occurring during the entire expected
duration. Expected credit loss in the next 12 months refers to expected credit loss resulting from default of financial instruments likely
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occurring within 12 months after the balance sheet date (expected duration if the expected duration of financial instruments is less than
12 months) which is part of expected credit loss during the entire duration.
For the financial instrument with a lower credit risk on the balance sheet date, the Group assumes that its credit risks have not
increased significantly since the initial recognition, and measures the loss provisions according to the expected credit losses of the
future 12 months.
(2) Standard for judging whether credit risk has remarkably increased after initial recognition.
In case that probability of default of one financial asset confirmed on the balance sheet date in the expected duration is obviously
higher than that confirmed at the moment of initial recognition in the expected duration, it means credit risk of such financial asset
remarkably increases. The changes of default risk within the next 12 months are adopted by the Group other than special cases as
reasonable estimate in the entire duration, ensuring whether the credit risk has increased significantly since the initial recognition.
(3) Combinatorial method of appraising future credit risk based on portfolio
The Group appraises the credit risk of the financial asset item of significantly different credit risks, such as: receivables from the
related parties; receivables disputed with the opposite side or involving litigation or arbitration; there have been obvious signs showing
that the debtor possibly is not able to perform the repayment obligations of receivable amounts, etc.
Except financial assets of individual credit risk assessment, the Group divides financial assets into different groups based on the
common risk characteristics and appraises credit risks based on portfolio.
(4) Accounting treatment method of financial assets impairment
The expected credit losses of all kinds of financial assets are calculated by the Group at the end of the duration. If the estimated
credit loss is greater than the book value of the current impairment provision, the difference is recognized as impairment loss; if not, it
is recognized as impairment profits.
(5) Determination method of credit losses of all kinds of financial assets
(a) Accounts receivable and contract assets
For accounts receivable and contract asset not involving significant financing part, Supor always calculates the loss provision as
the amount of expected credit loss within the entire duration.
For accounts receivable and contract asset involving significant financing part, Supor always calculates the loss provision as the
amount of expected credit loss within the duration.
The other accounts receivables other than individual credit risk assessment are divided into different portfolios based on their
credit risk characteristics:
Item Basis for determination of portfolio
Accounts receivable:
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
Portfolio 2: low-risk portfolio The portfolio includes very low-risk amounts such as the payment of export third-party goods.
Portfolio 3: merged related parties This portfolio includes current amount between related parties within the merger scope of
portfolio amounts receivable.
(b) Other receivables
The impairment loss is measured by the Group in accordance with the amount of expected credit loss equivalent to that within
the next 12 months or the entire duration based on whether the credit risk of other receivables has increased significantly since the
initial recognition. The other receivables other than individual credit risk assessment are divided into different portfolios based on their
credit risk characteristics:
Item Basis for determination of portfolio
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
The portfolio consists of interests receivable, dividends receivable, receivables from
Portfolio 2: low-risk portfolio
government departments with very low risk.
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Portfolio 3: merged related parties This portfolio includes current amount between related parties within the merger scope of
portfolio amounts receivable.
（c）Notes receivable and accounts receivable financing
Item Basis for determination of portfolio
The Group 's Notes receivable are all bank acceptance bills, and the group combines all Notes
Notes receivable
receivable into one group.
The Receivables financing of the group is for bank acceptance bills with dual holding purposes.
Receivables financing Due to the fact that the acceptance banks are all banks with higher credit ratings, the Group
considers all Receivables financing as a combination.
12. Receivables financing
The notes receivable and accounts receivable at fair value through other comprehensive incomes are listed as receivables financing
with a term of less than one year (including one year) from the initial recognition; See the Note V.10 "Financial Instruments" and 11
"Financial Assets Impairments" for relevant accounting policies.
13. Inventories
(1) Category
Inventory mainly includes raw materials, unfinished products, finished products, low value consumables and packing materials.
(2) Valuation method for the acquisition and distribution of inventory
When inventories are acquired, they are priced at actual costs. Inventory costs include procurement costs, processing costs, and
other costs. When inventories are used and distributed, the price is calculated by the one-off weighted average method at the end of a
month.
(3) Inventory system is perpetual inventory system
(4) Amortization method for low value consumables and packing materials
Low value consumables are amortized by the one-off write-off method or amortized over two years; Packaging materials are
amortized using a one-time write off method.
(5) Method of recognizing net realizable value and accruing depreciation reserve of inventories
At the balance sheet date, the inventory shall be measured according to the cost or net realizable value, subject to the lower one.
Net realizable value refers to the amount of the estimated selling price of inventories deducted by estimated costs to be incurred
upon completion, estimated sales expenses and related taxes in daily activities. For the raw materials held for production, the net
realizable value shall be measured based on the net realizable value of the finished products they produce.For the inventories held for
executing the sales contract or labor contract, the net realizable value shall be measured based on the contract price. When the amount
of holding inventory is more than the ordering amount in sales contract, the net realizable value of the excess inventory shall be
measured based on general sales price. The difference between the cost calculated by inventory category and its net realizable value
shall be recognized as a provision for inventory impairment and recognized in the current period's profit and loss.
Basis for determining net realizable value
Inventory category
Estimated selling price minus estimated selling expenses and
Finished products
related taxes and fees
Raw materials
Estimated selling price minus estimated costs to be incurred until
completion, estimated sales expenses, and related taxes and fees
Low value consumables
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14. Contract assets
The Group lists the customer's unpaid contract consideration as contract assets in the balance sheet, under which the Group has
fulfilled its performance obligations in accordance with the contract, and it does not have the right to collect payments from customers
unconditionally (that is, only depending on the passage of time). Contract assets and liabilities under the same contract are listed in net
amount, and those under different contracts shall not be offset.
For the determination and accounting treatment methods of expected credit losses of contract assets, please refer to Note V. 11
"Financial Assets Impairment".
15. Held-for-sale assets and disposal groups
(1) held for sale Non current assets or disposal groups
In case the Group mainly recovers the book value by selling (including non-monetary assets exchange of commercial essence, the
same below) rather than using a non-current asset or disposal group continuously, it will be classified as held-for-sale category. Specific
standard refers to meeting the following conditions at the same time: one non-current asset or disposal group can be immediately sold
under the current situation pursuant to the convention for selling such asset or disposal group in similar transaction; the Group has
made a resolution about sale plan and got certain of purchase commitment; it's predicted that the sale will be completed within one
year. Disposal group refers to a group of assets that will be disposed together as a whole by selling or other means in a transaction and
the liabilities directly related to these assets and transferred in the transaction. In case the asset group or asset group portfolio where
the disposal group belongs has amortized the goodwill acquired in enterprise merger according to Accounting Standards for Business
Enterprises No. 8 - Asset Impairment, the disposal group shall include the goodwill amortized to it.
If there are non-current assets or disposal groups purchased to resell during initial measurement or on the balance sheet date based
on remeasurement of the Group, if the book value is higher than the net amount by deducting the selling expenses with the fair value,
the book value shall be written down and be equal to the net amount by deducting the selling expenses with the fair value. The write-
down amount shall be confirmed as the asset impairment loss and recognized through current profits and losses. At the same time, the
impairment provision of the held-for-sale assets shall be calculated and withdrawn. For the disposal group, it shall deduct the book
value of the goodwill in the disposal group with the asset impairment loss confirmed, then deduct in proportion the book value of each
non-current asset in the disposal group conforming to the measurement provisions on Accounting Standards for Business Enterprises
No. 42 - Held-for-sale Non-current Assets, Disposal Group and Discontinuing Operation (hereinafter referred to as "the Standard for
Held-for-sale Non-current Assets"). For the held-for-sale disposal group, if the net amount after deducting the selling expenses from
the fair value on the subsequent balance sheet date increases, the previous write-down amount shall be recovered and shall be reversed
from the confirmed amount of asset impairment loss amount of the non-current asset as per the measurement provisions on the Standard
for Held-for-sale Non-current Assets after the assets are classified as held-for-sale category. The reverse amount shall be recognized
through current profits and losses, and the book value shall be added in proportion of the book value of each non-current asset in the
disposal group applicable to the measurement provisions on the Standard for Held-for-sale Non-current Assets, except for the goodwill.
Book value of the goodwill that has been offset and asset impairment loss recognized before the non-current assets applying to the
measurement provisions on the Standard for Held-for-sale Non-current Assets are classified as held-for-sale category shall not be
reversed.
Depreciation or amortization will not be withdrawn for held-for-sale non-current assets or non-current assets in the disposal group,
and the interest of liabilities in held-for-sale disposal group and other expenses shall be recognized continuously.
When the non-current assets or disposal group can't be classified as held-for-sale category, the Group will no longer continue to
classify them as held-for-sale or remove non-current assets from the held-for-sale disposal group and measure them according to the
following two items, subject to the lower one: ① book value before the assets are classified as held-for-sale category, namely, the
amount after the adjustment is carried out according to the depreciation, amortization or impairment, etc. that shall be recognized in
the condition that the assets are supposed not to be classified as held-for-sale category; ② recoverable amount.
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(2) Termination of operations
The group will define the termination of operations as a separately identifiable component that meets one of the following
conditions and has been disposed of by the Group or classified as held for sale:
-This component represents an independent main business or a separate main operating area;
-This component is part of a related plan to dispose of an independent main business or a separate main operating area;
-This component is a subsidiary acquired specifically for resale.
The group separately presents the continuing operations profit and loss and the termination operations profit and loss in the current
profit and loss statement, and re presents the information previously reported as continuing operations profit and loss as the termination
operations profit and loss for comparable accounting periods in the profit and loss statement for the comparative period.
16. Long-term equity investment
The long-term equity investment mentioned in this part refers to the long-term equity investment of which the Group has control
right, common control right or significant impact on the invested units. Long-term equity investments that the Group does not have
control, common control or significant impact on the invested unit are accounted for as financial assets at fair value through current
profits and losses. If such assets are not non-transactional, the Group may specify these capitals as measured at the financial assets at
fair value through other comprehensive incomes at the initial recognition. See Note V. 10"Financial Instruments" for details.
Common control refers to common control on a certain arrangement according to related provisions by the Group and related
activities of the arrangement can be decided only after the consent of the participant sharing the control right. Significant impact refers
to the Group's power on participating in the decision-making of financial and operating policies of the invested unit, but it can't control
the formulation of these policies or control the formulation commonly with other party.
Determination of investment cost
(1) Determination of investment costs
For the long-term equity investment obtained from the enterprise merger under the same control, the initial investment cost of the
long-term equity investment shall be taken as the share of the book value of the merged party's shareholders' equities/owners' equities
in the final controlling party's consolidated financial statements on the merger date. As to the difference between initial investment cost
of long-term equity investments and the book value of the cash paid, non-cash assets transferred and liabilities assumed, it's required
to adjust the capital reserve correspondingly. In case the capital reserve is insufficient for the offset, it's required to adjust the retained
earnings. In the case of treating issued equity securities as the merger consideration, the share of the book value of the merged party's
shareholders' equities/owners' equities in the consolidated financial statement of the final controlling party is regarded as the initial
investment cost of long-term equity investment on the merger date; the capital reserves shall be adjusted in accordance with taking the
total face value of shares issued as share capital, and the difference between the initial investment cost of long-term equity investment
and the total face value of shares issued; In case the capital reserve is insufficient for the offset, it's required to adjust the retained
earnings. The equity of the merged party obtained step by step through several transactions, which finally forms enterprise merger
under the same control, shall be handled separately according to whether it belongs to "package deal": if it belongs to the "package
deal", the accounting treatment will be carried out by taking transactions as a certain one with control right. If it does not belong to
"package deal", the share of the book value of the merged party's shareholders' equities/owners' equities in the final controlling party's
consolidated financial statement on the merger date will be taken as the initial investment cost of long-term equity investment, and the
capital reserves will be adjusted according to the difference between the initial investment cost of long-term equity investment and the
sum of book value of long-term equity investment before combination and book value of consideration newly paid for acquiring the
share; In case the capital reserve is insufficient for the offset, it's required to adjust the retained earnings. Other comprehensive income
of equity investment held before the merger date, which is accounted by equity method or recognized as financial assets at fair value
through other comprehensive incomes, is temporarily not subject to the accounting treatment.
The long-term equity investment obtained from the enterprise merger not under the same control shall be used as the initial
investment cost of long-term equity investment according to the merger cost on the purchase date. The merger cost includes the sum
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of assets paid by the purchasing party, liabilities incurred or assumed, and fair value of issued equity securities. The equity of the
purchased party held obtained step by step through several transactions, which finally forms enterprise merger not under the same
control, shall be handled separately according to whether it belongs to "package deal": if it belongs to the "package deal", the accounting
treatment will be carried out by taking transactions as a certain one with control right. If it does not belong to "package deal", it shall
take the sum of the book value of the original equity investment held by the original purchased party and the newly investment cost as
the initial investment cost of the long-term equity investments under the cost method. If the equity originally held is accounted for by
equity method, the relevant other comprehensive incomes will not be accounted for the time being.
The initial measurement of other equity investments except for the long-term equity investment formed by the enterprise merger
shall be carried out according to the costs; in consideration of the different acquisition modes of long-term equity investment, such
costs shall be determined respectively by the cash purchase price actually paid by the Group, the fair value of equity securities issued
by the Group, value agreed in the investment contract or agreement, the fair value or original book value of assets surrendered in the
non-monetary assets exchange transaction, the fair value of the long-term equity investment, etc. The expenses, taxes and other
necessary expenditures directly related to the acquisition of the long-term equity investment shall also be recognized through
investment cost. If the significant impact or common control is implemented on the invested unit due to the additional investment, but
it does not constitute the control, the long-term equity investment cost is the sum of fair value of the originally held equity investment
determined according to Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial
Instruments and newly investment cost.
(2) Methods for the subsequent measurement and the profit and loss confirmation
Long-term equity investments that have common control (except for joint operators) or significant impact on the invested unit are
accounted by equity method. Besides, the Company's financial statement adopts the cost method to account the long-term equity
investment that can be controlled by the invested unit.
(a) Long-term equity investments under the cost method
When the cost method is adopted for accounting, long-term equity investment is priced at the initial investment cost, and the cost
of long-term equity investment shall be adjusted when the investment is added or recovered. The current investment incomes shall be
recognized by the cash dividends or profits announced and issued by the invested unit, except for the actual price paid when the
investment is obtained or the cash dividends or profits which have been declared but not issued in the consideration.
(b) Long-term equity investments under the equity method
As to long-term equity investments checked by equity method, in case the initial investment cost is more than the shares of fair
value of identifiable net assets of the invested unit that shall be enjoyed during the investment, initial investment cost of the long-term
equity investments shall not be adjusted; in case the initial investment cost is less than the shares of fair value of identifiable net assets
of the invested unit that shall be enjoyed during the investment, the difference shall be recognized through current profits and losses
and the cost of long-term equity investments shall be adjusted simultaneously.
When the equity method is adopted for accounting, it's required to recognize the investment income and other comprehensive
income respectively according to net profit or loss realized by the invested unit that shall be enjoyed or shared and other comprehensive
income, and book value of the long-term equity investment shall be adjusted simultaneously. As to the part that shall be enjoyed and
calculated according to the profits or cash dividends announced and distributed by the invested unit, it's required to reduce the book
value of long-term equity investment correspondingly. As to other changes in owners' equities of the invested unit except for net profits
and losses, other comprehensive incomes and profit distribution, book value of the long-term equity investment shall be adjusted and
recognized through capital reserve. When the shares of net profit or loss of the invested unit that shall be enjoyed are recognized, it
shall be based on fair value of each identifiable net asset of the invested unit when the investment is acquired and after the adjustment
is made on net profit of the invested unit. In case the accounting policy and accounting period employed by the invested unit are
different from those employed by the Group, financial statements of the invested unit shall be adjusted according to the Group's
accounting policy and accounting period. Besides, investment income, other comprehensive income, etc. shall be recognized on this
basis. For transactions between the Group and associated enterprise or joint venture, if the assets launched or sold do not constitute the
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business, the unrealized internal trading profits and losses shall be offset according to the proportion attributable to the Group, and the
investment profits and losses shall be confirmed on this basis. In case the part incurred between the Group and the invested unit without
internal transaction loss belongs to the asset impairment loss, it shall not be offset. If the assets invested by the Group to the joint
venture or associated enterprise constitute the business, and the investor thereupon obtains the long-term equity investment but fails to
obtain the control right, the fair value of business launched is taken as the initial investment cost of newly long-term equity investment,
and the difference between the initial investment cost and book value of business launched shall be recognized through current profits
and losses in full. If the assets sold by the Group to the joint venture or associated enterprise constitute the business, the difference
between the consideration acquired and the book value of business shall be fully recognized through current profits and losses. If the
Group's assets purchased from the joint venture or associated enterprise constitute the business, accounting treatment shall be conducted
in accordance with the provisions of the Accounting Standards for Business Enterprises No. 20 - Enterprise Merger, and the gains or
losses related to the transaction shall be fully recognized.
When the net loss of the invested unit that shall be shared is recognized, the book value of the long-term equity investment and
other long-term equity that actually constitute the net investment of the investee shall be written down to zero. Besides, if the Group
has the obligation to bear the additional loss for the invested unit, the estimated liabilities will be recognized according to the estimated
obligation that shall be assumed and recognized through current investment losses. In case the net profit is realized by the invested unit
later, after the Group makes up the unrecognized loss amount shared by the income amount shared, it's required to recover the revenue
recognition amount shared.
(c) Acquisition of minority shareholders' equities
When compiling the consolidated financial statements, the Company shall adjust the capital reserve due to the difference between
the newly-increased long-term equity investment from the purchase of the minority shareholders' equities and the net asset shares
enjoyed according to the new shareholding proportion of the subsidiary continuously calculated from the purchase date (or the merger
date); in case that the capital reserves are not sufficient to offset, the retained earnings shall be adjusted.
(d) Disposal of the long-term equity investment
The parent company partially disposes the long-term equity investment of subsidiary when the control right is not lost in
consolidated financial statement. The difference between disposal price and subsidiaries' net assets enjoyed corresponding to the
disposal of long-term equity investment will be recognized through shareholders' equities; supposing that the parent company loses the
control right for the subsidiary due to the partial disposal of the long-term equity investment for the subsidiary, it shall be dealt with in
accordance with the relevant accounting policies as specified in the Note V. 7" Judgment criteria of control, and preparation method
for consolidated financial statements " (2).
As for the disposal of the long-term equity investment under other circumstances, the difference between the book value of the
disposed equity and the actually-obtained price shall be recognized through current profits and losses.
For long-term equity investments under the equity method, if the residual equities after disposal shall still be accounted by the
equity method, upon the disposal, the part of other comprehensive income that was originally recognized through shareholders' equities
shall be accounted for on the same basis as the invested unit's direct disposal of relevant assets or liabilities in a corresponding
proportion. However, the owners' equities that are recognized based on the changes in other owners' equities shall be carried forward
to the current profits and losses in proportion, except for the net profits and losses, other comprehensive incomes and profit distribution
of investees.
For the long-term equity investments under the cost method, if the residual equities after disposal are still under the cost method,
the accounting treatment of other comprehensive incomes confirmed under the equity method or standards of recognition and
measurement of financial instruments before obtaining control of the invested unit shall be conducted on the same basis of the invested
unit's directly disposal of the relevant assets or liabilities, and it shall be carried forwarded to the current profits and losses in proportion;
except for the net profits and losses, other comprehensive incomes and profit distribution, the changes in other owners' equities in the
invested unit's net assets which are accounted and recognized by the equity method shall be carried forward to the current profits and
losses in proportion.
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If the Group loses control of the invested unit due to disposal of partial equity investment, and the residual equities after disposal
may exert common control or significant impact on the invested unit while preparing individual financial statements, the equity method
will be adopted for accounting, and it will be measured by the equity method and adjusted with equity method since obtaining; if the
residual equities after disposal cannot implement the common control or exert significant impact on the invested unit, the relevant
provisions in respect of the standards of recognition and measurement of financial instruments shall be referenced for the accounting
treatment, and the difference between the fair value and book value shall be recognized through current profits and losses on the date
of losing control. Before the Group acquires the control of the invested unit, for other comprehensive incomes confirmed under the
equity method or standards of recognition and measurement of financial instruments, when the control of the invested unit is lost, the
accounting treatment shall be conducted on the same basis of the invested unit's direct disposal of relevant assets or liabilities; the
changes in the other owners' equities of the invested unit's net assets other than the net profits and losses, other comprehensive incomes
and profit distribution calculated and confirmed by the equity method shall be settled and transferred to the current profits and losses
in proportion. Among which, if the residual equities after disposal are calculated by the equity method, other comprehensive incomes
and other owners' equities shall be carried forward in proportion; if the residual equities after disposal are to be conducted with
accounting treatment in accordance with the standards of recognition and measurement of financial instruments, other comprehensive
incomes and other owners' equities shall be carried forward.
If the Group loses the common control or significant impact on the invested unit due to disposal of partial equity investment, the
residual equities after disposal shall be accounted according to the standards of recognition and measurement of financial instruments.
The difference between the fair value and book value shall be recognized through current profits and losses on the date of losing
common control or significant impact. As for other comprehensive incomes as recognized when the original equity investment is under
the equity method, it shall be subject to the accounting treatment on the same basis of the assets or liabilities which are directly disposed
by the invested unit when the equity method is abandoned. The owners' equities which are recognized by the invested unit due to the
changes in other owners' equities, except for the net profits and losses, other comprehensive incomes and profit distribution of investees,
will be reckoned in the current investment incomes when the equity method is abandoned.
The Group will take the multiple transactions to dispose the subsidiaries' equity investment step by step until lose its control right.
When the above-mentioned transactions belong to the package deal, the transactions will be subject to the accounting treatment as an
equity investment of subsidiaries and transaction which has lost the control right. The difference between the disposal price and the
corresponding book value of long-term equity investment will be recognized as the other comprehensive incomes before losing the
control right, which will be reckoned in the current profits and losses when the control right is lost.
17. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for producing commodities, providing labor service, leasing or operation management
with service life of more than 1 fiscal year. The fixed assets can be confirmed only when the relevant economic interests are possible
to flow into the Group and its costs can be measured reliably. The initial measurement of fixed assets shall be carried out according to
the cost and considering the expected influence of the discard expenses.
(2) Depreciation method
Categories Depreciation method Depreciation life (Years) Residual rate Annual depreciation rate
Buildings and structures Straight-line method 20-30 0%-10% 3.00%-5.00%
General equipment Straight-line method 3-7 0%-10% 12.86%-33.33%
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Special equipment Straight-line method 3-10 3%-10% 9.00%-32.33%
Transport facilities Straight-line method 4-10 3%-10% 9.00%-24.25%
The expected net residual value refers to the expected amount that the Group may obtain from the current disposal of fixed assets
after deducting the expected disposal expenses at the expiration of its expected service life.
(3) Impairment test method and counting and withdrawing method of the impairment provision of fixed
assets
See more details about the impairment test method and the withdrawing method of impairment provision of fixed assets in Note
V. 22 "Impairment of Long-term Assets".
(4) Other remarks
The subsequent expenditures related to fixed assets shall be recognized through fixed assets cost, and the derecognition of the
book value of the substitution part shall be carried out if economic benefits related to such fixed assets may flow in and its cost can be
reliably measured. Other subsequent expenditures, except for this, shall be recognized through current profits and losses once occurred.
As for each component constituting fixed assets, in case that they have different service life or provide economic interest for the
group by different ways and apply to different rates of depreciation and depreciation methods, the Group confirms each component as
single fixed asset, respectively.
When the fixed assets are under disposal state or it is estimated that no economic benefits can be produced through usage or
disposal, such fixed asset is confirmed to be derecognized. The difference of the amount left as the book value and relevant taxes are
deducted from the disposal revenue obtained from the sale, transfer, discard or damage of the fixed asset shall be recognized through
current profits and losses.
The Group shall review the service life, expected net residual value and depreciation method of the fixed assets at least by the end
of the year. In case of any change, it shall be deemed as changes in accounting estimate.
18. Construction in progress
The cost of construction in progress shall be confirmed as per actual engineering expenditures, including various project
expenditures under construction, capitalized borrowing expense for making the project reach the expected serviceable condition, and
other relevant costs. The construction in progress shall be transferred to the fixed assets when it reaches the expected serviceable
condition.
Standard and time spot of converting construction in progress disclosed per category to fixed assets:
Categories Standard and time point of carrying forward construction in progress to fixed assets
Buildings and structures Meeting the completion standard specified in the contract or project plan
General/special equipment Installation and commissioning meeting the design standard and contract standard
See more details about the impairment test method and the withdrawing method of impairment provision of construction in
progress in Note V. 22 "Impairment of Long-term Assets".
The income and cost of the Group's external sales of products or by-products produced before the fixed assets reach the expected
serviceable condition, the company should carry out accounting treatment separately according to Accounting Standards for Business
Enterprises No. 14 - Revenue and Accounting Standards for Business Enterprises No.1 - Inventory, which shall be recognized through
current profits and losses.
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19. Borrowing expenses
Borrowing expenses include interest on borrowings, amortization of discounts or premiums, auxiliary costs and exchange
differences arising from foreign currency borrowings, etc. For the borrowing expense generated from the acquisition and construction
or production that can be directly attributable to the assets that meet capitalization conditions, the capitalization shall be started when
the asset expenditure or the borrowing expense has incurred, or the acquisition and construction or production activities necessary for
making the assets available for expected serviceable or marketable state have been started; capitalization shall be stopped when the
assets under acquisition and construction or production that meet capitalization conditions reach the expected serviceable condition or
marketable state. Other borrowing expenses are recognized as those in the current period.
The amount can be capitalized after the actual interest expense generated from the specific borrowing deducting the interest
revenue from the unused loan funds deposited in the bank or investment income obtained from the temporary investment in the current
period; for the general borrowing, the capitalized amount will be determined after the weighted average of excessive part of
accumulative asset expenditures compared to the asset expenditure of special borrowing multiplied by the capitalization rate of the
general borrowing occupied. The capitalization rate is determined based on the weighted average interest rate of general borrowing.
In the capitalization period, all exchange differences of special foreign currency borrowings shall be capitalized; exchange
difference of general foreign currency borrowing shall be recognized through current profits and losses.
Assets meeting capitalization conditions refer to the fixed assets, investment properties, inventories, etc. which can reach the
expected serviceable state or marketable state after quite a long time of acquisition and construction or production.
If assets meeting capitalization conditions are interrupted abnormally in the process of acquisition and construction or production,
and the interruption lasts for more than 3 months, the capitalization of borrowing expense shall be suspended till the asset acquisition
and construction or production restarts.
20. Intangible assets
(1) Intangible assets
Intangible assets refer to the identifiable non-monetary assets that have been owned or controlled by the Group and have no
physical form.
The initial measurement of intangible assets shall be conducted according to its costs. Expenditures related to intangible assets
shall be recognized through cost of intangible assets if the relevant economic benefits may flow in the Group and its cost can be reliably
measured. Other projects' expenditures, except for this, shall be recognized through current profits and losses once occurred.
Land use right acquired is usually calculated as an intangible assets. As for buildings such as self-developed and constructed
workshops, the related land use right expenditure and construction cost of the buildings shall be calculated as intangible assets and
fixed assets respectively. As for purchased buildings and structures, the related prices are distributed between land use right and the
buildings. If it is difficult to distribute them reasonably, all of them shall be disposed as fixed asset.
As for intangible assets with a limited service life, the accumulative amount after deducting the expected net residual value and
the accrued impairment provisions with original value since the serviceable date, it is amortized with the straight-line method within
the expected service life. Intangible assets with undetermined service life will not be amortized.
The service life, determination basis, and amortization method of various intangible assets are::
Amortization period
Item Determination basis Amortization method
(years)
Land use right 43-50 Legal term Straight-line method
Software 2-10 The duration that can bring economic benefits to the company Straight-line method
Trademark use right 10 Legal term Straight-line method
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Dumping right 5 Contract term Straight-line method
At the end of each period, the service life of intangible assets with limited service life and the amortization method for them will
be rechecked. Changes of them will be regarded as changes of accounting estimate. In addition, the service life of intangible assets
with undetermined service life will be rechecked. If there is evidence manifesting that an intangible asset can bring economic benefits
for the enterprise within a foreseeable period, then its service life will be estimated and it will be amortized according to the amortization
policy for intangible assets with limited service life.
(2) R&D expenditure
Expenditures on the internal R&D items of the Group are divided into research expenditure and development expenditure.
Research expenditure is recognized through current profits and losses at the time of occurrence.
Development expenditure that can meet the following conditions will be recognized as intangible assets, while those cannot meet
will be recognized through current profits and losses.
- Complete the intangible asset so as to make the use or sale of it technically feasible;
- Have the intention to complete the intangible asset and use or sell it;
- The way that an intangible asset generates economic benefits is to certify that the products produced with the intangible asset has
market or the intangible asset itself has market, or to certify its usability when it will be used internally;
- There are enough technology, financial resources and other resources to support finishing the development of an intangible asset,
and it is capable of using or selling this intangible asset;
- Expenditure within the development stage of this intangible asset can be measured reliably.
If it is unable to distinguish the research expenditure from development expenditure, both R&D expenditures will be recognized
through current profits and losses.
(3) Impairment test method and counting and withdrawing method of the impairment provision of intangible
assets
See more details about the impairment test method and the withdrawing method of impairment provision of intangible assets in Note
V. 22 "Impairment of Long-term Assets".
21. Long-term unamortized expense
Long-term unamortized expenses are expenses that have occurred but shall be borne during the reporting period and subsequent
periods with a sharing period of more than one year. Long-term unamortized expenses of the Group mainly include improvement
expenditure of fixed assets leased for operation. Long-term unamortized expenses are amortized by the straight-line method over the
expected benefit period.
22. Impairment of long-term assets
As for fixed assets, construction in progress, right-of-use assets, intangible assets with a limited service life, investment properties
measured by cost measurement, long-term unamortized expenses, and non-current and non-financial assets such as the long-term equity
investment and goodwill of subsidiaries, joint ventures and associated enterprises, the Group shall determine whether there is any sign
of impairment on the balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and impairment
test shall be carried out. Goodwill, intangible assets with undetermined service life and intangible assets that have not reached the
serviceable state, whether there is any sign of impairment, shall be subject to impairment test every year.
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If the impairment test result shows that the recoverable amount of assets is lower than the book value thereof, impairment provision
shall be accrued according to the difference and recognized through impairment losses. The recoverable amount shall be determined
as the net amount obtained by the fair value of asset - disposal expense, or as the present value of the estimated future cash flow of
assets, whichever is higher. The fair value of the asset is determined according to the price in the sales agreed price in the fair transaction;
if there is no sales agreement but there is an active market of assets, the fair value is determined according to buyer's price of the asset;
if there is no sales agreement and an active market of assets does not exist, the fair value of assets shall be estimated based on the best
information obtained. The disposal expenses include the legal cost related to the asset disposal, relevant taxes, carriage expenses as
well as direct expenses for achieving the marketable state status. The present value of the estimated future cash flow of assets shall be
determined by the discounted amount by an appropriate discount rate, on the basis of the estimated future cash flow generated during
the continuous usage and final disposal of assets. The impairment provision shall be calculated and recognized on the basis of the single
asset. If it is hard to estimate the recoverable amount of the single asset, the recoverable amount of the asset group shall be determined
according to the asset group by the asset group to which the asset belongs. Asset group refers to the minimum asset portfolio that is
capable of generating cash inflow independently.
For the goodwill separately presented in the financial statements, during the impairment test, the book value of goodwill shall be
apportioned to the asset group or asset group portfolio expected to be benefited from the synergistic effect of enterprise merger. If the
test results show that the recoverable amount of the asset group or asset group portfolio containing the apportioned goodwill is lower
than its book value, the corresponding impairment loss shall be recognized. The amount of impairment loss firstly offsets the book
value of goodwill apportioned to the asset group or asset group portfolio, and then offsets the book value of other assets in proportion
according to the proportion of the book value other than goodwill in the asset group or asset group portfolio.
Once the above-mentioned asset impairment losses are recognized, the part of which can be recovered shall not be reversed in
subsequent periods.
23. Contract liabilities
Contract liabilities refer to the obligation of the Group to transfer commodities to customers for the received or receivable
consideration from customers. In the event that the customer has paid the contractual consideration or the Group has obtained the
unconditional collection right before it transfers the commodities to customers, the Group shall present the received or receivable
account as contract liabilities with regard to the actual payment by customers and the due payment, whichever happens earlier. Contract
assets and liabilities under the same contract are listed in net amount, and those under different contracts shall not be offset.
24. Employee remuneration
The Group's employee remuneration mainly includes short-term employee remuneration, post-employment benefits, termination
benefits and other long-term employee welfare. Including:
Short-term employee remuneration mainly includes salary, bonus, allowance and subsidy, employee benefits expense, medicare
premium, maternity premium, occupational injuries premium, housing accumulation fund, labor union expenditure, personnel
education fund, non-monetary welfare, etc. During the accounting period in which the Group's employees provide services for the
Group, actual short-term employee remuneration incurred shall be recognized as the liabilities and recognized through current profits
and losses or relevant asset costs. And the non-monetary welfare shall be measured at fair value.
Post-employment benefit mainly includes basic endowment insurance, unemployment insurance, and annuity. The plan of post-
employment benefit includes the defined contribution plan. In case that the defined contribution plan is adopted, corresponding amount
which shall be deposited will be recognized through relevant asset costs or current profits and losses at the time of occurrence.
Labor relation with employees shall be cancelled before the employee's labor contract expires, or suggestion on giving
compensation shall be proposed for the purpose of encouraging employees to voluntarily accept downsizing. When the Group cannot
unilaterally withdraw termination benefits provided for cancellation of labor relation plan or downsizing suggestion and on the date
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when the Group confirms the cost related to restructuring involving payment of termination benefits, whichever is the earlier, the
employee remuneration liabilities caused by termination benefits shall be recognized through current profits and losses. However, if it
is expected that the termination benefits cannot be fully paid within twelve months after the annual reporting period is over, it shall be
handled according to other long-term employee remuneration.
The same principle for termination benefits described above shall be adopted for the plan of employee internal retirement. Staff
salary and social insurance premium to be paid by the Group for the early retired employee from the date of stopping providing services
to the date of normal retirement are recognized through current profits and losses (termination benefit) if the estimated liabilities
recognition conditions are met.
25. Estimated liabilities
If the obligation related to contingencies satisfies the following conditions at the same time, the Group shall recognize it as the
estimated liabilities: ① This obligation is the current obligation undertaken by the Group; ② Performance of this obligation may make
economic benefits flow out of the enterprise; ③ Amount of this obligation can be reliably measured.
The estimated liabilities are initially measured based on the best estimate of the expenses required to fulfill the relevant current
obligations. For those with significant impact on the time value of currency, estimated liabilities are determined based on the discounted
amount of expected future cash flows. When determining the best estimate, the Group comprehensively considers factors such as risk,
uncertainty, and time value of money related to contingencies.The necessary expenditure has a contiguous range, and within this range,
all kinds of results have the same possibility to occur. The optimal estimate is determined according to the median of this range. In
other circumstances, the optimal estimate is treated as below:
- If the contingency involves with a single item, then the optimal estimate will be determined based on the amount that is most likely
to occur.
- If the contingency involves with several items, then the optimal estimate will be determined based on all possible results and their
probabilities.
The group reviews the book value of estimated liabilities on the balance sheet date and adjusts the book value based on the current
best estimate.
(1) Loss contract
The loss contract refers to a contract whose performance of the contractual obligations will inevitably incur costs in excess of the
expected economic benefits. When an enforceable contract becomes a loss contract, for which the liability can conform to the aforesaid
estimated liabilities recognition conditions, confirm the part the estimated losses of the contract surpass the confirmed impairment loss
(if any) of the underlying asset in the contract as estimated liability.
(2) Restructuring obligations
It shall determine the estimated liabilities amount according to the direct expenditures related to the restructuring which has
detailed, formal and publicly stated restructuring plan and which are in line with the recognition conditions of the aforesaid estimated
liabilities. The restructuring obligation related to partially-sold business will be recognized to be the associated obligation only when
the Group promises to sell partial businesses (namely, signs the binding-force sales agreement).
26. Share-based payment
(1) Accounting treatment of share-based payment
A share-based payment is a transaction that grants the equity instruments or assumes a liability determined on the basis of the
equity instruments in order to obtain services from employees or other parties. Share-based payments are divided into equity-settled
share-based payments and cash-settled share-based payments.
(a) Equity-settled share-based payment
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Equity-settled share-based payments in exchange for services provided by employees are measured at the fair value with the equity
instruments granted to the employees at the grant date. The amount of the fair value is recognized through relevant cost or expense
based on the optimal estimate of the number of vesting equity instruments in case of completing the service within the waiting period
or meeting the required performance conditions; when the vesting right is granted immediately, the relevant cost or expense is included
on the grant date according to the straight-line method, and the capital reserves shall be increased accordingly.
On each balance sheet date during the waiting period, the Group makes the optimal estimate based on the latest information such
as the change in the number of employees with vesting rights, and corrects the number of equity instruments that are expected to be
vested. The impact of the above estimates is recognized through current relevant cost or expense, and the capital reserves shall be
adjusted accordingly.
In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of other parties' services
can be reliably measured, the fair value of other parties' services is measured at the fair value on the date of acquisition; if the fair value
of other parties' services cannot be reliably measured, but the fair value of equity instruments can be measured reliably, it shall be
measured at the fair value of the equity instrument on the acquisition date, and is recognized through relevant cost or expense, and
increases the shareholders' equities accordingly.
(b) Cash-settled share-based payment
The cash-settled share-based payment is measured at the fair value of the liabilities determined by the Group based on shares or
other equity instruments. If the vesting right is granted immediately after the grant, the relevant cost or expense will be included on the
grant date, and the liabilities increased accordingly; if the service within the waiting period must be completed or the required
performance conditions are met, the fair value of the liabilities assumed by the Group is based on the optimal estimate of the vesting
rights on each balance sheet date of the waiting period. The services obtained in the current period are recognized through cost or
expense, and the liabilities are increased accordingly.
The fair value of the liability is re-measured at the balance sheet date and the settlement day before the settlement of the relevant
liabilities, and the change shall be recognized through current profits and losses.
(2) Accounting treatment related to the modification and termination of share-based payment plan
When the Group modifies the share-based payment plan, if the modification increases the fair value of the equity instruments
granted, the increase in the fair value of the equity instruments is recognized accordingly. The increase of the fair value of equity
instruments refers to the difference between the fair value of the equity instruments before and after the modification on the
modification day. If the modification reduces the total fair value of the share-based payment or adopts other methods that are not
conducive to the employee, the service obtained will continue to be accounted for, as if the change has never occurred, unless the
Group cancels some or all of the equity instruments granted.
During the waiting period, if the granted equity instrument is cancelled, the Group will cancel the granted equity instrument as an
accelerated exercise, and the amount to be recognized in the remaining waiting period will be immediately recognized through current
profits and losses, and the capital reserves shall be recognized at the same time. If the employee or other party can choose to meet the
non-vesting conditions but fails to meet in the waiting period, the Group will treat it as a cancellation of the equity instrument.
(3) Accounting treatment of the share-based payment transactions involving the Group and the shareholders or actual controllers of the
Company
For share-based payment transaction involving the Group or the Company's shareholders or actual controller, if either settlement
enterprise or enterprise accepting service is inside the Group or outside the Group, the accounting treatment shall be conducted in the
consolidated financial statements of the Group according to the following regulations:
- Where the settlement enterprise makes calculation by its own equity instruments, the share-based payment transaction shall be
treated as the equity-settled share-based payment; in addition, it shall be handled as a cash-settled share-based payment.
- If the settlement enterprise is an investor of a enterprise accepting service, it shall be recognized as the long-term equity
investment of the enterprise accepting service according to the fair value of the equity instrument at the grant date or the fair value of
the liability to be assumed, and the capital reserves (other capital reserves) or liabilities shall be recognized.
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- If the enterprise accepting service does not have a settlement obligation or the equity instruments granted to the enterprise
employees are its own equity instrument, such share-based payment transaction shall be treated as the equity-settled share-based
payment. - If the enterprise accepting service have a settlement obligation and the equity instruments granted to the enterprise
employees are its own equity instrument, such share-based payment transaction shall be treated as the cash-settled share-based payment.
The share-based payment transactions between the enterprises within the Group, if the enterprise accepting service and the
settlement enterprise are not the same enterprise, and the confirmation and measurement of the share-based payment transaction in
individual financial statements of the enterprise accepting service and the settlement enterprise shall be compared with the above
principles.
27. Revenues
Accounting policy adopted for recognition and measurement of revenues disclosed per business type
Revenue is the total inflow of economic benefits that the Group has formed in its daily activities that will result in an increase in
shareholders' equities and has nothing to do with the capital invested by shareholders. Where the contract between the Group and its
customers can meet the following conditions at the same time, the revenue shall be confirmed when the customer owns the relevant
control right of the commodity (including labor service, the same below): all concerned parties have approved the contract and promised
to fulfill their respective obligations; the contract has specified rights and obligations of each concerned party related to commodity
transfer or labor provision; the contract has clear payment terms and conditions related to the transferred commodities; the contract is
of the commercial essence, which means that performance of the contract will change the risk, time distribution or amount of future
cash flow of the Group; the consideration that the Group is entitled to obtain due to the transfer of commodities to customers is likely
to be recovered. To obtain the control right of relevant commodities means to be able to lead the use of the commodities and obtain
almost all economic benefits therefrom.
On the beginning date of the contract, the Group identifies the individual performance obligation specified in the contract and
amortizes the transaction price to each individual performance obligation based on the relative proportion of the individual sales price
of the commodity guaranteed in individual performance obligation. Variable consideration, significant financing part in the contract,
non-cash consideration, customer consideration payable, etc. have been taken into account the transaction price.
For the consideration payable to customers, the payable consideration should be offset against the transaction price, and the
current income should be offset at the later of the recognition of relevant income and the payment (or commitment to pay) of customer
consideration, except for the consideration payable to customers for the purpose of obtaining other clearly distinguishable goods from
customers.
For contracts with quality assurance terms and conditions, the Group analyzes the nature of the quality assurance provided by
them. If the quality assurance provides a separate service in addition to assuring customers that the commodities sold meet the
established standards, the Group regards it as a single performance obligation.
Transaction price is the consideration amount the Group is expected to be entitled to receive for the transfer of commodities or
services to customers, excluding payments received on behalf of third parties. The transaction price recognized by the Group does not
exceed the amount for which it is highly probable that the accumulated recognized revenue will not be reversed significantly when the
relevant uncertainty is eliminated.
As for each individual performance obligation in the contract, if one of the following conditions is met, the Group shall confirm
the transaction price which is amortized into the individual performance obligation based on the performance progress within a relevant
performance period as the revenue: the customer obtains and consumes the economic benefits while the Group fulfills the performance
obligation; the customer manages to control the commodities in process while the Group fulfills the performance obligation.
Commodities produced during the performance period have irreplaceable purposes and the Group has the right to receive payment for
the performance part which has been completed so far during the entire contract period. The performance progress shall be confirmed
based on the nature of commodities transferred by virtue of the input method or the output method. When the performance progress
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cannot be confirmed reasonably, if it is predicted that the incurred cost of the Group can be compensated, the revenue shall be confirmed
based on the incurred cost amount until the performance progress can be confirmed reasonably.
If one of the above conditions cannot be met, the Group confirms the transaction price amortized to the individual performance
obligation at the time when the customer obtains the control right of relevant commodities as the revenue. When judging whether the
customer has obtained the control right of the commodity, the Group can consider the following signs: the enterprise has the current
collection right of the commodity, namely the customer is responsible for current payment obligation of the commodity; the enterprise
has transferred the legal ownership of the commodity to the customer, namely the customer has possessed the legal ownership of the
commodity; the enterprise has transferred the real commodity to the customer, namely the customer has possessed the real commodity;
the enterprise has transferred main risks and rewards of the commodity to the customer, namely the customer has obtained the main
risks and rewards related to the ownership of the commodity; the customer has accepted the commodity; other signs indicating that the
customer has obtained the control right of the commodity.
For sales with sales return terms and conditions, when customers obtain control over related commodities, the Group recognizes
revenue according to the consideration amount expected to be received due to the transfer of commodities to customers (i.e., excluding
the amount expected to be refunded due to sales return), and recognizes liabilities as per the amount expected to be refunded due to
sales return. Simultaneously, according to the expected book value of the returned commodities at the time of transfer, the balance after
deducting the expected cost of recovering the commodities (including the impairment of the value of the returned commodities) is
recognized as an asset, and the net cost of the above assets is carried forward according to the book value of the transferred commodities
at the time of transfer. On each balance sheet date, the Group re-estimates the future sales returns, and if there is any change, it will be
treated as a change in accounting estimates.
The Group's selling of commodities such as cookware and small domestic appliances is a type of performance obligation at a
certain time point, of which the revenue is recognized when the control over the commodities has been transferred to the customer.
According to the agreement in the sales contract, the group mainly recognizes the control over commodity as having been transferred
to the customer and recognizes relevant commodity revenue when such commodity has left the group's warehouses or its specified
warehouses, delivered to the customer with acceptance receipt issued, or such commodity has been delivered on board to the sea
transport carrier with the customs declaration for export and bill of lading obtained.
28. Contract costs
The incremental cost incurred by the Group to obtain the contract and expected to be recovered shall be recognized as an asset as
the contract acquisition cost. However, if the amortization period of the asset does not exceed one year, it shall be recognized through
current profits and losses at the time of occurrence.
In the event that the cost incurred for the performance of the contract does not fall within the scope of the Accounting Standards
for Business Enterprises No. 14 - Revenue (Revised in 2017) and meets the following conditions at the same time, it shall be recognized
as an asset as the contract performance cost: ① The cost is directly related to a current or expected contract, including direct labor,
direct materials, manufacturing expenses (or similar expenses), costs borne by the customer and other costs only incurred by the
contract; ② The cost increases the Group's resources to fulfill its performance obligations in the future; ③ The cost is expected to be
recovered.
Assets recognized for contract acquisition cost and assets recognized for contract performance cost (hereinafter referred to as
"assets related to contract cost") shall be amortized on the same basis as the revenue recognition of commodities or services related to
such assets and recognized through current profits and losses.
Where the book value of assets related to contract costs is higher than the difference between the following two items, the Group
shall withdraw the impairment provisions of the excess part and recognize it as the asset impairment loss:
- Residual consideration expected to be obtained arising from the transfer of commodities or services related to the assets by the
Group;
- Cost estimated to be occurred for the transfer of the relevant commodities or services.
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29. Government subsidies
Government subsidies refer to monetary assets and non-monetary assets obtained by the Group from the government, excluding
the capital invested by the government as the investor with enjoying corresponding owners' equities. Government subsidies are divided
into government subsidies concerning assets and government subsidies concerning benefits. The government subsidy that is obtained
by the Group used for purchasing or acquisition and construction, or forming the long-term assets by other ways, which is confirmed
the government subsidies concerning assets; Other government subsidies shall be defined as the government subsidies concerning
benefits. If the government document does not clear the subsidy object, the subsidies will be divided based on the following modes
into government subsidies concerning benefits and government subsidies concerning assets: ① If the particular item of the subsidies
is clear in the government document, it shall make a division according to the relative proportion of expense amount of the formed
assets in the budget of the particular item and the expense amount recognized through cost, review the division ratio at each balance
sheet date and make changes if necessary; ② In the government document, for general terms only for the purpose without specifying
the particular item, it will be used as the government subsidies concerning benefits. If government subsidies are monetary assets, they
shall be measured according to the amount received or receivable. If not, they shall be measured according to their fair value; if their
fair value cannot be reliably obtained, they shall be measured according to their nominal amount. The government subsidies measured
by the nominal amount shall be directly recognized through current profits and losses.
When the Group actually receives the government subsidies, it shall be recognized and measured as the amount received. However,
for the end of the period, there are conclusive evidences that it can meet the relevant conditions stipulated by the financial support
policy, and it is expected that the financial support funds can be received, it shall be measured according to the amount receivable. The
government subsidies measured as the amount receivable shall comply with the following conditions: ① The subsidy receivable has
been recognized by the competent government department, or may be reasonably calculated according to the relevant provisions of the
formally published financial fund management method, and the estimated amount is free of significant uncertainty; ② It is based on
the initiatively published financial support project by the local financial department and its financial fund management method in
accordance with the regulations of the Decree of Government Information Openness, and this management method shall be favorable
to the public (any enterprise qualified can apply), not just to the specified companies; ③ The relevant subsidy documents have clearly
promised the appropriation period, and the appropriation of this fund shall be safeguarded by the relevant financial budget, so it can be
reasonably guaranteed that it can be received within the specified period; ④ Other relevant conditions that shall be satisfied (if any)
based on the specific circumstances of the Group and the grant.
If the government subsidies concerning assets are recognized as deferred incomes and are recognized through current profits and
losses by installments in a reasonable and systematic way within the service life of underlying assets. Government subsidies concerning
benefits used to compensate future relevant costs or losses will be recognized as deferred income, and recognized through current
profits and losses during the period when the related costs or losses are recognized; those used to compensate relevant costs or losses
that have occurred will be recognized through current profits and losses directly.
At the same time, it includes the government subsidies related to assets and incomes, and separates different parts for accounting
treatment; for those hard to be differentiated, it shall be taken as government subsidies concerning benefits as a whole.
The government subsidies concerning daily activities of the Group shall be recognized through other incomes, or used to offset
the relevant costs according to the economic business nature. Government subsidies not concerning daily activities will be recognized
through non-operating income and expenditure.
If the government subsidies confirmed need to be returned and there is the deferred income balance concerned, the book balance
of relevant deferred incomes shall be offset against, but the excessive part shall be recognized through current profits and losses; In
other circumstances, they shall be recognized through current profits and losses directly.
30. Deferred income tax assets/deferred income tax liabilities
(1) Current income tax
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On the balance sheet date, the current income tax liabilities (or assets) formed in the current period and previous periods shall be
measured by the expected amount of income tax payable (or returnable) calculated in accordance with the provisions of the tax law.
The taxable income on which the current income tax expenses are calculated shall be calculated after the corresponding adjustment of
the pre-tax accounting profit in the current reporting period in accordance with the relevant tax law.
(2) Deferred income tax assets/deferred income tax liabilities
The difference between the book value of some assets and liabilities and their tax bases, and the temporary difference caused by
the difference between the book value of the items that are not recognized as assets and liabilities but whose tax bases can be determined
according to the tax law, shall be used to recognize deferred income tax assets and deferred income tax liabilities with the balance sheet
liability method.
For taxable temporary differences related to the initial recognition of goodwill and the initial recognition of assets or liabilities
arising from transactions that are neither enterprise merger nor affect accounting profit and taxable income (or deductible loss) at the
time of occurrence, the relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences
related to the investments of subsidiaries, associated enterprises and joint ventures, if the Group can control the time of reversal of the
temporary differences, and the temporary differences are likely not to be reversed in the foreseeable future, the relevant deferred income
tax liabilities shall not be recognized. Except for the above exceptions, the Group shall recognize all other deferred income tax liabilities
incurred in the taxable temporary differences.
Taxable temporary differences and deductible temporary differences related to the initial recognition of assets or liabilities arising
from a single transaction that is neither a enterprise merger nor affects accounting profits and taxable incomes (or deductible losses)
shall be respectively recognized as deferred income tax liabilities and deferred income tax assets at the time of transaction. In addition,
for the deductible temporary differences related to the investment of subsidiaries, associated enterprises and joint ventures, if the
temporary differences are not likely to be reversed in the foreseeable future, or it is not likely to obtain the taxable income used to
offset the deductible temporary differences in the future, the relevant deferred income tax assets shall not be recognized. Except for the
above exceptions, the Group shall recognize the deferred income tax assets arising from other deductible temporary differences to the
extent that taxable income is likely to be obtained for deducting the deductible temporary differences.
For deductible losses and tax deductions that can be carried down in subsequent years, the corresponding deferred income tax
assets shall be recognized with the limit of the future taxable income which is likely to be obtained for deducting the deductible losses
and tax deduction.
Deferred income tax assets and deferred income tax liabilities shall be calculated on the balance sheet date based on the applicable
tax rate during the period of expected recovery of relevant assets or clearing off relevant liabilities according to tax laws.
On the balance sheet date, it is required to recheck the book value of the deferred income tax assets. If sufficient taxable income
is not likely to be obtained for deducting the interest of deferred income tax assets in the future, the book value of deferred income tax
assets shall be written down. When it is very likely to obtain enough taxable income the write-down amount shall be reversed.
(3) Income tax expenses
The income tax expenses comprise the current income tax and deferred income tax.
Moreover, the other current income tax and deferred income tax expenses or earnings shall be recognized through current profits
and losses, except for book value of goodwill which is adjusted on the basis of the deferred income tax caused by the enterprise merger,
and that the current income tax and the deferred income taxes related to other comprehensive incomes or transaction or affairs of direct
recording in the shareholders' equities are recognized through other comprehensive incomes or shareholders' equities.
(4) Offset of income tax
When it has the legal rights of settlement based on the net amount and it intends to make settlement based on net amount, obtain
assets or offset liabilities simultaneously, the current income tax assets and current income tax liabilities of the Group shall be presented
based on the net amount after offsetting.
When it has the legal rights of settling the current tax assets and current income tax liabilities based on the net amount, and the
deferred income tax assets and deferred income tax liabilities are related to income tax levied to the same subject of tax payment by
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the same tax collection and administration department or are related to different taxpayer, but in each important period of deferred
income tax assets and liabilities reverse in the future, and when the involved taxpayer intend to settle the current income tax assets and
liabilities based on the net amount or obtain assets and pay off the liabilities at the same time, the Group's deferred income tax assets
and deferred income tax liabilities shall be presented after offsetting.
31. Lease
Lease refers to a contract in which it is agreed that the lessor transfers the use right of assets to the lessee to get corresponding
consideration within a certain period.
The Group evaluates whether the contract is used for lease or includes the lease on the contract commencement date. Where either
party thereto assigns one or more use rights of the recognized assets under its control in a certain period to get consideration, the
contract is a lease or includes a lease.
In order to determine whether the contract transfers the right of controlling the use of an identified asset for a certain period of
time, the Group conducts the following assessment:
- Whether the contract involves the use of the identified asset. The identified asset may be explicitly specified by the contract, or
implicitly specified when the asset is available for use by the customer, and the asset is physically distinguishable, or in the event that
any production capacity of the asset or other part of the asset is physically indistinguishable, but it substantially represents the full
capacity of the asset, and thus enables the customer to have access to almost all the economic benefits arising from the use of the asset.
If the supplier of the asset has the substantial right of replacing the asset throughout the period of use, then the asset is not attributed to
an identified asset;
- Whether the lessee has the right to acquire almost all the economic benefits arising from the use of the identified asset during
the period of use;
- Whether the lessee has the right to direct the use of the identified asset during the period of use.
If the contract contains multiple separate leases at the same time, the lessee and lessor will split the contract and have each separate
lease separately subject to accounting treatment. If the contract includes lease and non-lease parts at the same time, the lessee and the
lessor will split them separately.
(1) Lessee
At the beginning date of the lease term, the Group recognizes the right-of-use asset and lease obligation of the lease. The right-
of-use asset is initially measured at cost, including the initial measurement amount of the lease obligation, the lease payment paid at or
before the beginning date of the lease term (less the amount of lease incentives already granted), the initial direct expenses incurred,
and the costs expected to be incurred to demolish and remove the leased asset, restore the site where the leased asset is located or
restore the leased asset to the state agreed upon in the provisions of the lease.
The Group employs the straight-line method to depreciate right-of-use assets. If the ownership of the leased assets can be
reasonably confirmed to be obtained upon expiry of the lease term, the depreciation of leased assets shall be withdrawn by the Group
during the remaining service life thereof; Otherwise, the leased asset is depreciated during the shorter of the lease term and the
remaining service life of the leased asset. Impairment provisions for right-of-use assets shall be made in accordance with the accounting
policies described in Note V. 22 "Impairment of long-term assets".
The lease obligation is initially measured at the present value of the lease payment that has not been paid at the beginning date of
the lease term, and the discount rate is the implicit rate of the lease. If the implicit rate of the lease cannot be determined, the incremental
borrowing rate of the Group shall be adopted as the discount rate.
The Group calculates the interest expense of the lease obligation for each period of the lease term at a fixed periodic interest rate,
which is recognized through current profits and losses or relevant asset costs. The variable lease payment not recognized through
measurement of lease obligations will be recognized through current profits and losses or relevant asset costs when it actually occurs.
In case of any of following circumstances after the beginning date of the lease term, the Group will remeasure lease obligations
at the present value of the lease payment after any change:
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-Where the amount payable anticipated changes according to the guaranteed residual value;
- Where the index or ratio used for recognizing the lease payment changes;
- Where there is a change in the Group's assessment results of the option of purchase, renewal option or option of termination of
lease or the actual exercising of the termination of the renewal option or option of termination of lease is inconsistent with the original
assessment result.
When the lease obligation is measured anew, the Group will adjust the book value of right-of-use assets accordingly. If the book
value of the right-of-use asset has been reduced to zero, but the lease obligation still needs to be further reduced, the Group will include
the remaining amount in the current profits and losses.
The Group chooses not to confirm the right-of-use asset and lease obligation for short-term lease (with a lease term not exceeding
12 months) and low-value asset lease (the value of a single leased asset is lower when it is a brand new asset) as well as includes related
lease payment into the current profits and losses or relevant asset costs in each period during the lease term pursuant to the straight-
line method.
(2) Lessor
At the beginning date of the lease term, the Group divides leases into financing and operating leases. Financing lease refers to a
lease in which almost all the risks and rewards related to the ownership of the leased asset are essentially transferred, regardless of
whether the ownership is finally transferred or not. The operating lease refers to the other leases except for the financing lease.
The Group, as the lessor, provides classification of subleases based on the right-of-use assets created by the original lease rather
than the underlying assets of the original lease. If the original lease is a short-term lease and the Group chooses to apply the simplified
treatment of the above short-term lease to the original lease, then the Group classifies the sublease as an operating lease.
Under financing leases, at the beginning date of the lease term, the Group confirms financing lease receivables for financing lease
and derecognizes the financial leasing assets. The Group regards the net investment in a lease as the entry value of financing lease
receivables at the time of initial measurement of financing lease receivables. The net investment in a lease is the sum of the present
value of unguaranteed residual value and lease receipt not received yet on the beginning date of the lease term which is subject to
discounting at the implicit rate in the lease term.
The Group calculates and recognizes the Interest revenue in each period within the lease term according to a fixed periodic rate.
The derecognition and impairment of financing lease receivables shall be treated in accordance with the accounting policies described
in Note V. 10 "Financial Instruments" and 11 "Financial Assets Impairment". The variable lease payment which is not recognized
through net lease investment shall be recognized through current profits and losses when it actually occurs.
The lease receipts of operating lease are confirmed as rent revenue in each period within the lease term in light of straight-line
method. The Group capitalizes the initial direct expenses incurred in connection with operating leases, apportioned them over the lease
term on the same basis as the rent revenue recognition, and recorded into the current profits and losses by stages. The variable lease
payment which is not recognized through lease receipt shall be recognized through current profits and losses when it actually occurs.
32. Related parties
If one party controls or jointly controls the other party or imposes significant impact on the other party, and two or more parties
are controlled or jointly controlled by one party, these parties are related parties. Related party can be individual or enterprise. An
enterprise that is only controlled by the state but does not have other related party relationships does not constitute a related party.
In addition, the Company also determines the Group or related parties of the Company in accordance with the Administrative
Measures for the Disclosure of Information of Listed Companies promulgated by the CSRC.
33. Segment report
See Note XVIII, 1 "Segment Information" for details of accounting policies related to segment reporting for details.
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34. Other important accounting policies and estimates
(1) Repurchased shares
If the Group reduces its capital by acquiring the stocks of the Company with approval, then it shall reduce equities according to
the total amount of the face value of cancelled stocks, and adjust owners' equities according to the difference between the price paid to
purchase stocks back (including transaction cost) and the face value of stocks. The part exceeding the total face value shall be used to
write down capital reserve (share capital premium), surplus reserve and undistributed profit. If the price is lower than the total face
value, then the part lower shall be increased with capital reserve (share capital premium).
Shares repurchased by the Group shall be managed as treasury shares before they are cancelled or transferred; total expenditure
of repurchased shares shall be transferred as the cost of treasury shares.
When treasury shares are transferred, the part higher than their revenue shall be transferred to increase capital reserve (share
capital premium); the part lower than the cost of treasury shares shall write down capital reserve (share capital premium), surplus
reserve and undistributed profit in sequence.
If the Group repurchase shares for the reason of equity incentive, it shall treat all expenses on shares repurchase as treasury shares
while repurchasing and make registration for future reference.
(2) Fair value measurement
Fair value, refers to the price that market participant can obtain or needs to pay after selling an asset or transferring a liability,
among the orderly transactions made on the measurement date. The Group measures relevant asset or liability and considers the
characteristics of this asset or liability at fair value; supposes the selling of assets or transfer of liabilities by market participant are
orderly transaction under current market conditions; supposes the orderly selling of assets or transfer of liabilities are carried out in the
main market of relevant assets or liabilities; supposes the transaction is made in the most favorable market for relevant assets or
liabilities when there is no main market. The Group adopts the assumptions that market participants use to maximum their economic
benefits when they price assets or liabilities.
The Group judges whether the fair value at initial recognition equals to its transaction price according to transaction nature and
the characteristics of relevant assets or liabilities; if the transaction price is not equal to the fair value, relevant gains or losses will be
recognized through current profits and losses, unless otherwise specified by relevant accounting standards.
The Group adopts the valuation technique that is applicable to the current situation and has enough available data and other
information to support. Mainly used valuation techniques include market approach, income approach and cost method. In the
application of valuation techniques, relevant observable input values shall be used first, and unobserved input values can only be used
when relevant observable input values cannot be obtained or it is not feasible to obtain them.
Input values used by the Group for fair value measurement is divided into 3 levels. The first level of input values will be used
first, and then the second level and the third level. First level of input values are the quotations of same assets or liabilities that can be
obtained on the measurement date and are not adjusted in the active market; the second level of input values are the direct or indirect
observable input values of relevant assets or liabilities other than the first level of input values; the third level of input values are the
unobservable input values of relevant assets or liabilities.
The Group measures non-financial assets with fair value, considers market participant's ability to use this asset in the best way to
generate economic benefits, or the ability to sell this asset to other market participants who can use this asset in the best way to generate
economic benefits. To measure a liability with fair value, the Group supposes this liability is transferred to other market participants
on the measurement date, and further exists after transfer, and the market participant, who is the transferee, performs obligations. To
measure one's own equity instrument with fair value, suppose this equity instrument is transferred to other market participants on the
measurement data, and further exits after transfer, and the market participant, as the transferee, obtains relevant rights to this instrument
and undertakes corresponding obligations.
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35. Change of important accounting policies and estimates
(1) Change of important accounting policies
Applicable □ Not applicable
The Group implemented the relevant provisions and guidelines of the Enterprise Accounting Standards issued by the Ministry of
Finance in recent years in 2023.
The provision in Interpretation No. 16 of the Accounting Standards for Business Enterprises (CK [2022] No.31) ("Interpretation
No. 16"), that is, the provision "regarding the accounting treatment of non-applicability of initial recognition exemption to the deferred
income tax related to assets and liabilities arising from individual transactions"
According to this provision, for taxable temporary differences and deductible temporary differences arising from initial
recognition of assets and liabilities in individual transactions that do not fall in the definition of enterprise merger and do not affect
accounting profits or taxable income (or deductible losses) at the time of transaction and whose initial recognition of assets and
liabilities results in equal taxable temporary differences and deductible temporary differences, Supor respectively recognizes the
corresponding deferred income tax liabilities and deferred income tax assets at the time of transaction in line with relevant regulations
such as the Accounting Standards for Enterprises No.18 - Income Tax, and no longer recognizes deferred income tax liabilities or
deferred income tax assets based on the net amount of taxable temporary differences and deductible temporary differences accrued.
The adoption of the requirements has not had a significant impact on the financial condition and operating results of the Group.
(2) Change of important accounting estimates
□ Applicable Not applicable
(3) First implementation of new accounting standards adjusts the related items in financial statements since 2023
□ Applicable Not applicable
VI. Taxes
1. Main taxes and tax rates
Tax Tax base Tax rate
Taxable revenue is calculated at output tax rates of 0, 6%, 9%,
The taxable revenue from sales of
VAT and 13%, and VAT is calculated based on the difference after
commodities or rendering of services
deducting the input tax allowable for the current period.
Urban maintenance and
VAT payable 7%
construction tax
Corporate income tax rate is 25%. Shaoxing Supor, Zhejiang
WMF and Hainan Supor E-Commerce Company are taxed at
a preferential tax rate of 15%. Wuhan Recycling and Shanghai
Enterprise income tax Taxable income Marketing are taxed at a preferential tax rate of 20%. Overseas
subsidiary Indonesian Company is taxed at a 22% rate, Supor
Vietnam and AFS are taxed at 20%, and SEADA is taxed at
17%.
Education surcharge VAT payable 3%
Local education
VAT payable 2%
surcharge
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1.2% of the residual value after deducting 30%
of the original value of the property is
calculated and paid in case of ad valorem; for
Housing property tax 1.2%, 12%
housing property levied on the basis of rent,
housing property tax is levied at the rate of
12% of rent revenue.
2. Tax preferences
Pursuant to GKH Zi [2020] No. 32 document, Shaoxing Supor and Zhejiang WMF renewed the hi-tech enterprise qualification in
2022 and is entitled to enjoy the preferential enterprise income tax rate of 15% for the three-year period starting from January 1, 2022.
According to the Enterprise Income Tax Law of the People's Republic of China and its implementation regulations, the Notice on
Preferential Policies for Enterprise Income Tax in Hainan Free Trade Port (CS [2020] No.31) as well other provisions, business
income tax will be levied at a rate of 15% for encouraged industrial enterprises registered and substantially operating in the Hainan
Free Trade Port from January 1, 2020 to December 31, 2024. Meeting the e-commerce in the encouraged industries catalogue, Hainan
Supor E-Commerce Company applies the preferential tax rate of 15% in 2023.
Pursuant to the Announcement of the Ministry of Finance and the State Taxation Administration on the Preferential Income Tax
Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households (CS [2023] No.6) on March 26, 2023,
from January 1, 2023 to December 31, 2024, the portion of the annual taxable income of small and micro profit enterprises that does
not exceed RMB 1 million shall be taken into the taxable income at the ratio of 25%, and the enterprise income tax payable thereof
shall be settled at the rate of 20%. Meanwhile, according to the Announcement of the Ministry of Finance and the State Taxation
Administration on Further Implementing the Preferential Income Tax Policies for Micro and Small Enterprises (CS [2022] No. 13),
from January 1, 2022 to December 31, 2024, for the part of the annual taxable income of small and low-profit enterprises that exceeds
RMB 1 million but less than RMB 3 million, a reduced rate of 25% shall be applied, and the enterprise income tax shall be paid at a
tax rate of 20%. Among which, Wuhan Recycling and Shanghai Marketing meet the standards of small and low-profit enterprises in
2023, therefore the preferential tax rate at 20% is applicable in 2023.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Item Closing balance Opening balance
Cash on hand 62,594.14 56,591.47
Cash in bank 2,964,417,369.53 3,215,677,104.23
Other monetary capitals 583,797,478.77 347,407,212.05
Total 3,548,277,442.44 3,563,140,907.75
Including: deposited overseas 61,122,895.90 207,979,588.92
Other remarks:
1) As at December 31, 2023, the restricted bank deposit is the cancelled frozen amount of RMB 30,423.72 (December 31, 2022: RMB
8,541.04) in the branch company's bank account, there is no frozen amount (December 31, 2022: RMB 82,189.64) in the bank account
for change of judicial person for industrial and commercial purpose, and there is no term deposit amount (December 31, 2022: RMB
12,546,000.00) pledged for issuing bank acceptance bills, and the remaining RMB 2,964,386,945.81 in bank deposits is not restricted
for use,among them, more than three months term deposits of RMB 1,607,020,342.48.
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2) As at December 31, 2023, other monetary capitals include the restricted acceptance bill security of RMB 476,860,000.00 (December
31, 2022: RMB 254,129,233.86), e-commerce platform security of RMB 613,739.88 (December 31, 2022: RMB 975,570.02), advance
payment financing deposit security of RMB 58,000,000.00 (December 31, 2022: RMB 58,000,000.00), and unrestricted monetary
capital of RMB 48,323,738.89 (December 31, 2022: RMB 34,302,408.17) in Alipay wallet, JD pay, Douyin wallet, securities settlement
account, futures settlement account, and Youzan account, etc.
3) As at December 31, 2023, the monetary capital deposited by Supor in Vietnam is equivalent to RMB 44,335,548.85 (December 31,
2022: equivalent to RMB 193,083,117.24). The monetary capital deposited by Supor in Singapore is equivalent to RMB 4,491,068.45
(December 31, 2022: equivalent to RMB 3,754,734.88). The monetary capital deposited by Supor in Indonesia is equivalent to RMB
12,296,278.60 (December 31, 2022: equivalent to RMB 11,141,736.80).
2. Transactional financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through current profits and losses 351,137,787.54 431,382,527.79
Including:
- Short-term financial products 351,137,787.54 431,382,527.79
Total 351,137,787.54 431,382,527.79
Other remarks:
As at December 31, 2023, the financial assets at fair value through current profits and losses are the financial products purchased by
the Company, amounting to RMB 350,000,000.00 (December 31, 2022: RMB 430,000,000.00). These financial products with floating
income, and linked to interest rates and exchange rates, etc., and the corresponding gains from changes in fair value, i.e RMB
1,137,787.54 (December 31, 2022: RMB 1,382,527.79), are recognized at the end of the current period.
3. Notes receivable
(1) Details on categories
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 15,311,935.98 27,325,952.95
Total 15,311,935.98 27,325,952.95
(2) Classified disclosure by the bad debt provision method
Unit: RMB
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
Categories debts debts
Book value Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Notes receivable for
15,311,935.98 100.00% 15,311,935.98 27,325,952.95 100.00% 27,325,952.95
provision for bad debts
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2023 Annual Report of Zhejiang Supor Co., Ltd.
made on the basis of
portfolio
Including:
Portfolio：Bank
15,311,935.98 100.00% 15,311,935.98 27,325,952.95 100.00% 27,325,952.95
acceptance bill
Total 15,311,935.98 100.00% 15,311,935.98 27,325,952.95 100.00% 27,325,952.95
Provision for bad debts made on a portfolio basis: 0
If yes, a provision for bad debts for notes receivable shall be accrued according to the general model of expected credit loss:
□ Applicable Not applicable
(3) Provision for bad debts made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Categories Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Bank acceptance
bill
Wherein, important amounts of provision for bad debts collected or reversed in the current period:
□ Applicable Not applicable
(4) Notes receivables that the Company has pledged at the end of the period
As of December 31, 2023, the Group had no notes receivable pledged (December 31, 2022: None).
(5) Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
Unit: RMB
Closing balance not
Item Closing balance derecognized
derecognized
Bank acceptance bill 10,761,655.33
Total 10,761,655.33
Other remarks:
By December 31, 2023, Supor's undue and endorsed notes receivable of RMB 10,761,655.33 (December 31, 2022: RMB
22,383,800.87). have not been recognized as notes transferred to the suppliers to settle the amount payable. This is mainly because
that, according to the management, the risks and remunerations attached to the ownership of the notes have not been actually transferred.
The book values of the said undue notes receivable approximate their fair values. The said undue notes receivable will get mature
within 1 year.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
(6) Notes the Company transfers to accounts receivable due to the drawer's failure to perform the contract
at the end of the period
As at December 31, 2023, the Group has not any notes transferred to accounts receivable due to non-performance of drawers.
(December 31, 2022: None)
4. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (including 1 year) 2,956,340,005.74 2,003,575,860.86
1-2 years 7,090,033.51 3,735,332.58
2-3 years 1,283,949.52 255,548.22
Over 3 years 880,404.97 753,742.79
3-4 years 127,479.68 96,637.91
4-5 years 96,637.91 21,770.61
Over 5 years 656,287.38 635,334.27
Total 2,965,594,393.74 2,008,320,484.45
(2) Classified disclosure by the bad debt provision method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories
Book value Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable for
provision for
195,920.38 0.01% 195,920.38 100.00% 41,463.78 0.00% 41,463.78 100.00%
bad debts made
on an individual
basis
Accounts
receivable for
provision for 2,965,398,47 107,151,117. 2,858,247,356 2,008,279,020. 81,760,902.2 1,926,518,11
99.99% 3.61% 100.00% 4.07%
bad debts made 3.36 33 .03 67 9 8.38
on the basis of
portfolio
Including:
Portfolio 1: age 2,843,635,73 107,029,354. 2,736,606,378 1,929,487,537. 81,682,110.8 1,847,805,42
95.89% 3.76% 96.07% 4.23%
portfolio 3.09 59 .50 03 1 6.22
Portfolio 2: low- 121,762,740. 121,640,977.5 78,712,692.1
4.10% 121,762.74 0.10% 78,791,483.64 3.93% 78,791.48 0.10%
risk portfolio 27 3 6
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2023 Annual Report of Zhejiang Supor Co., Ltd.
2,965,594,39 107,347,037. 2,858,247,356 2,008,320,484. 81,802,366.0 1,926,518,11
Total 100.00% 3.62% 100.00% 4.07%
3.74 71 .03 45 7 8.38
Provision for bad debts made on an individual basis: RMB195,920.38
Unit: RMB
Opening balance Closing balance
Name Provision for Provision for Provision
Book balance Book balance Reasons
bad debts bad debts proportion
It is not expected to be recovered, so the
Customer A 41,463.78 41,463.78 41,463.78 41,463.78 100.00%
provision for bad debts is fully accrued.
It is not expected to be recovered, so the
Customer B 75,662.72 75,662.72 100.00%
provision for bad debts is fully accrued.
It is not expected to be recovered, so the
Customer C 78,793.88 78,793.88 100.00%
provision for bad debts is fully accrued.
Total 41,463.78 41,463.78 195,920.38 195,920.38
Categories for bad debts provision: Portfolio 1
Provision for bad debts made on a portfolio basis: RMB 107,029,354.59
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (including 1 year) 2,834,577,265.47 105,598,288.66 3.73%
1-2 years (including 2 years) 7,090,033.51 567,202.68 8.00%
2-3 years (including 3 years) 1,283,709.91 192,556.49 15.00%
3-4 years (including 4 years) 17,461.50 8,730.75 50.00%
4-5 years (including 5 years) 23,433.47 18,746.78 80.00%
Over 5 years 643,829.23 643,829.23 100.00%
Total 2,843,635,733.09 107,029,354.59
Explanation on the basis for determining such portfolio:
The expected credit loss rate is calculated upon the experience in actual credit loss, and adjusted based on the difference between the
economy during the historic period of data collection, the current economy and the economy during the duration expected by Supor.
If yes, a provision for bad debts for accounts receivable shall be accrued according to the general model of expected credit loss:
□ Applicable Not applicable
(3) Provision for bad debts made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Categories Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Provision for bad debts
for accounts 81,802,366.07 25,670,079.70 -65,161.50 -60,246.56 107,347,037.71
receivable
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Total 81,802,366.07 25,670,079.70 -65,161.50 -60,246.56 107,347,037.71
Decreased provision for bad debts of RMB 60,246.56 for conversion difference in foreign currency statement caused by the change in
exchange rate.
(4) Accounts receivable actually written off in current period
Unit: RMB
Item Amount
Accounts receivable actually written off 65,161.50
Including significant accounts receivable written off:
None
(5) Accounts receivable and contract asset details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of
impairment
Proportion in the
provision for bad
Closing balance Accounts receivable sum of accounts
Closing balance of debts for accounts
Entity name of contract and closing balance receivable and
accounts receivable receivable and
asset of contract asset closing balance of
impairment
contract asset
provision for
contract assets
SEB S.A. and its
1,807,452,286.57 1,807,452,286.57 60.95% 54,225,331.16
subsidiaries
Customer D 418,821,362.13 418,821,362.13 14.12% 21,014,332.83
Customer E 108,893,639.26 108,893,639.26 3.67% 108,893.64
Customer F 49,873,457.58 49,873,457.58 1.68% 2,496,277.88
Customer G 45,458,471.29 45,458,471.29 1.53% 2,272,923.56
Total 2,430,499,216.83 2,430,499,216.83 81.95% 80,117,759.07
5. Receivables financing
(1) Classification of receivables financing
Unit: RMB
Item Closing balance Opening balance
Notes receivable 363,532,765.35 235,957,044.34
Total 363,532,765.35 235,957,044.34
Other remarks:
The Group endorses or discounts certain bank acceptance bills by the needs of day-to-day fund management. Taking into account of
the amount and frequency of endorsement or discount of bank acceptance bills, the Group determines that the objective of such business
model is to receive contractual cash flows and sell the notes receivable simultaneously, and therefore, such notes receivable are
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2023 Annual Report of Zhejiang Supor Co., Ltd.
classified into financial assets measured at the fair value with their changes included into other comprehensive incomes, and presented
as receivables financing.
As at December 31, 2023, the Group had no receivables financing pledged. (December 31, 2022: None).
(2) Endorsed or discounted receivables financing undue at the balance sheet date at the end of the year
Unit: RMB
Closing balance not
Item Closing balance derecognized
derecognized
Bank acceptance bill 3,449,160,781.19
Total 3,449,160,781.19
Other remarks:
In order to settle part of the payables, the Group endorses the equal amount of undue notes receivable to the suppliers, and the
management of the Group considers that certain undue notes meet the conditions, that is, almost all risks and remuneration pertaining
to ownership have been transferred and meanwhile the current obligations of the relevant payables have been fully discharged, thus the
relevant notes and payables are derecognized. The possible greatest loss undertaken by the Group for the continued involvement therein
is the amount of the undue notes receivable endorsed by the Group to suppliers. The said undue notes receivable will get mature within
1 year.
6. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 16,126,721.38 16,373,697.26
Total 16,126,721.38 16,373,697.26
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 11,391,814.36 10,692,374.84
Temporary payment receivable 6,972,323.05 6,434,897.15
Personal deposit 1,457,137.01 2,382,649.26
Tax refund receivable 996,927.07 1,237,388.33
Total 20,818,201.49 20,747,309.58
2) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Within 1 year (including 1 year) 12,043,858.73 13,205,781.19
1-2 years 3,460,785.69 3,187,388.71
2-3 years 2,570,919.30 1,104,417.30
Over 3 years 2,742,637.77 3,249,722.38
3-4 years 688,905.05 647,421.24
4-5 years 251,762.10 848,436.61
Over 5 years 1,801,970.62 1,753,864.53
Total 20,818,201.49 20,747,309.58
3) Classified disclosure by the bad debt provision method
Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories
Book value Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other receivables
for provision for
1,190,578.89 5.72% 1,190,578.89 100.00%
bad debts made on
an individual basis
Other receivables
for provision for
bad debts made on 19,627,622.60 94.28% 3,500,901.22 17.84% 16,126,721.38 20,747,309.58 100.00% 4,373,612.32 21.08% 16,373,697.26
the basis of
portfolio
Including:
Portfolio 1: age
18,630,695.53 89.49% 3,500,901.22 18.79% 15,129,794.31 19,509,921.25 94.04% 4,373,612.32 22.42% 15,136,308.93
portfolio
Portfolio 2: low-
996,927.07 4.79% 996,927.07 1,237,388.33 5.96% 1,237,388.33
risk portfolio
Total 20,818,201.49 100.00% 4,691,480.11 22.54% 16,126,721.38 20,747,309.58 100.00% 4,373,612.32 21.08% 16,373,697.26
Provision for bad debts made on an individual basis: RMB1,190,578.89
Unit: RMB
Opening balance Closing balance
Name Provision for Provision for Provision
Book balance Book balance Reasons
bad debts bad debts proportion
It is not expected to be recovered,
Customer H 1,187,578.89 1,187,578.89 100.00% so the provision for bad debts is
fully accrued.
It is not expected to be recovered,
Customer I 3,000.00 3,000.00 100.00% so the provision for bad debts is
fully accrued.
Total 1,190,578.89 1,190,578.89
Categories for bad debts provision: Portfolio 1
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Provision for bad debts made on a portfolio basis: RMB 3,500,901.22
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (including 1 year) 9,859,352.77 492,967.64 5.00%
1-2 years (including 2 years) 3,460,785.69 276,862.86 8.00%
2-3 years (including 3 years) 2,570,919.30 385,637.90 15.00%
3-4 years (including 4 years) 688,905.05 344,452.52 50.00%
4-5 years (including 5 years) 248,762.10 199,009.68 80.00%
Over 5 years 1,801,970.62 1,801,970.62 100.00%
Total 18,630,695.53 3,500,901.22
A provision for bad debts that are accrued according to the general model of the expected credit loss:
Unit: RMB
Phase I Phase II Phase III
Expected credit loss in
Provision for bad debts Expected credit loss Total
Expected credit loss the entire duration
in the entire duration
in future 12 months (without credit
(credit impairment)
impairment)
Balance on January 1, 2023 4,373,612.32 4,373,612.32
Balance on January 1, 2023 in the
current period
Accrued 1,190,578.89 1,190,578.89
Write-off -870,404.29 -870,404.29
Others -2,306.81 -2,306.81
Balance on December 31, 2023 3,500,901.22 1,190,578.89 4,691,480.11
Other remarks:
Decreased provision for bad debts of RMB 2,306.81 for conversion difference in foreign currency statement caused by the change in
exchange rate.
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not applicable
4) Provision for bad debts made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Categories Opening Amount of changes in current period Closing balance
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2023 Annual Report of Zhejiang Supor Co., Ltd.
balance Collected or Write-off or
Accrued Others
reversed charge-off
Provision for bad debts of
4,373,612.32 1,190,578.89 -870,404.29 -2,306.81 4,691,480.11
other receivables
Total 4,373,612.32 1,190,578.89 -870,404.29 -2,306.81 4,691,480.11
5) Other receivables of the top 5 closing balances by debtors
Unit: RMB
Proportion in the total Closing balance
Entity name Nature of receivables Closing balance Ages closing balance of of provision for
other receivables bad debts
Temporary paragraph
Within 1 year, 1-4
Customer J receivable/deposit as 1,422,681.47 6.83% 249,934.07
years
security
Temporary payment
Customer H 1,187,578.89 Within 1 year 5.70% 1,187,578.89
receivable
Customer K Deposit as security 1,180,000.00 2-3 years 5.67% 177,000.00
Customer L Deposit as security 1,000,000.00 1-2 years 4.80% 80,000.00
Tax refund receivable Tax refund receivable 996,927.07 Within 1 year 4.79%
Total 5,787,187.43 27.79% 1,694,512.96
7. Advance payment
(1) Listing by ages
Unit: RMB
Closing balance Opening balance
Ages
Amount Proportion Amount Proportion
Within 1 year 190,478,767.90 98.61% 335,655,809.04 98.83%
1-2 years 2,453,401.67 1.27% 3,123,427.28 0.92%
2-3 years 123,148.33 0.06% 665,000.00 0.20%
Over 3 years 114,137.61 0.06% 165,310.70 0.05%
Total 193,169,455.51 339,609,547.02
(2) Advance payment of the top 5 closing balances by prepayment objects
Unit: RMB
Proportion in the balance of advance
Entity name Book balance
payment
Supplier A 24,117,310.00 12.49%
Supplier B 22,743,320.00 11.77%
Supplier C 18,541,281.80 9.60%
146
2023 Annual Report of Zhejiang Supor Co., Ltd.
Supplier D 13,047,590.11 6.75%
Supplier E 12,707,184.97 6.58%
Subtotal 91,156,686.88 47.19%
Other remarks:
Aging is calculated from the date of confirmation of the advance payment.
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
(1) Inventory classification
Unit: RMB
Closing balance Opening balance
Inventory Inventory
depreciation depreciation
Item reserves or reserves or
Book balance impairment Book value Book balance impairment Book value
provision for provision for
contract contract
performance cost performance cost
Raw materials 339,021,663.87 8,468,573.73 330,553,090.14 446,471,515.87 14,369,922.27 432,101,593.60
Unfinished
93,073,750.61 93,073,750.61 84,088,800.88 84,088,800.88
products
Finished products 1,739,751,597.38 16,482,797.36 1,723,268,800.02 1,885,938,291.03 19,558,744.71 1,866,379,546.32
Low value
108,345,465.67 82,857.41 108,262,608.26 101,274,579.44 379,610.26 100,894,969.18
consumables
Packing materials 7,525,138.28 7,525,138.28 11,457,946.44 11,457,946.44
Total 2,287,717,615.81 25,034,228.50 2,262,683,387.31 2,529,231,133.66 34,308,277.24 2,494,922,856.42
(2) Inventory depreciation reserves and impairment provision for contract performance cost
Unit: RMB
Increase Decrease
Item Opening balance Reversal or write- Closing balance
Accrued Others Others
off
Raw materials 14,369,922.27 2,557,307.61 8,430,970.38 27,685.77 8,468,573.73
Finished products 19,558,744.71 11,285,511.03 66,824.36 14,428,282.74 16,482,797.36
Low value
379,610.26 82,857.41 379,610.26 82,857.41
consumables
Total 34,308,277.24 13,925,676.05 66,824.36 23,238,863.38 27,685.77 25,034,228.50
Other remarks:
There is an increased inventory depreciation reserves of RMB 39,138.59 for conversion difference in foreign currency statement caused
by the change in exchange rate.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Closing balance Opening balance
Provision
Item Inventory Provision for Inventory
for
Book balance depreciation Inventory Book balance depreciation
Inventory
reserves depreciation reserves
depreciation
Raw materials 339,021,663.87 8,468,573.73 2.50% 446,471,515.87 14,369,922.27 3.22%
Finished
1,739,751,597.38 16,482,797.36 0.95% 1,885,938,291.03 19,558,744.71 1.04%
products
Low value
108,345,465.67 82,857.41 0.08% 101,274,579.44 379,610.26 0.37%
consumables
Total 2,187,118,726.92 25,034,228.50 2,433,684,386.34 34,308,277.24
9. Non-current assets due within one year
Unit: RMB
Item Closing balance Opening balance
Other debt investments due within one year 285,783,958.92 32,157,534.25
Total 285,783,958.92 32,157,534.25
(1) Debt investment due within one year
□ Applicable Not applicable
(2) Other debt investment due within one year
Applicable □ Not applicable
1) Other debt investments due within one year
Unit: RMB
Impairment
Fair provisions that
Accum
value are
Interest ulated
Opening Interest changes Closing cumulatively
Item adjustme Cost fair Remarks
balance receivable in the balance determined in
nt value
current other
changes
period comprehensive
incomes
Negotiable 25,590,193.4 193,765.
260,000,000.0
certificates 32,157,534.25 8 44 285,783,958.92
0
of deposit
25,590,193.4 193,765. 260,000,000.0
Total 32,157,534.25 285,783,958.92
8 44 0
10. Other current assets
Unit: RMB
Item Closing balance Opening balance
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Return cost receivable 15,285,358.91 14,266,301.12
Creditable VAT 111,403,625.69 49,236,636.79
Term deposit 381,101,095.89
Others 15,734,711.62 6,381,982.96
Total 142,423,696.22 450,986,016.76
11. Other debt investments
(1) Situation of other debt investment
Unit: RMB
Impairment
Fair value Accumula provisions that are
Interest
Interest changes in ted fair cumulatively
Item Opening balance adjustm Closing balance Cost Remarks
receivable the current value determined in other
ent
period changes comprehensive
incomes
Negotiable -
certificates of 1,056,952,424.68 61,494,063.11 187,720 951,306,342.48 890,000,000.00
deposit .63
Minus: Part -
due within one -32,157,534.25 -25,590,193.48 193,765 -285,783,958.92 -260,000,000.00
year .44
-
Total 1,024,794,890.43 35,903,869.63 381,486 665,522,383.56 630,000,000.00
.07
(2) Important other debt investment at the end of the period
Unit: RMB
Closing balance Opening balance
Other creditors' Effecti Overd Effecti
rights items Coupo ve ue Coupo ve Overdue
Face value Expiry date Face value Expiry date
n rate interes princip n rate interes principal
t rate al t rate
Shaoxing Supor
Housewares - China
Guangfa Bank 200,000,000.00 3.55% 3.43% 2025-04-21 200,000,000.00 3.55% 3.43% 2025-04-21
negotiable
certificates of deposit
Shaoxing Supor
Housewares - China
Guangfa Bank 150,000,000.00 3.35% 3.21% 2025-08-04
negotiable
certificates of deposit
Shaoxing Supor -
Bank of China
140,000,000.00 3.35% 3.32% 2025-03-03
negotiable
certificates of deposit
Total 340,000,000.00 350,000,000.00
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2023 Annual Report of Zhejiang Supor Co., Ltd.
12. Long-term equity investment
Unit: RMB
Increase/decrease
Opening Closing
Opening Investment Cash Closing
Invested balance of Invest Adjustment balance of
balance Investmen profit or loss Changes dividend/pro Accrued balance
unit impairment ment in other Other impairmen
(book value) t recognized in other fit declared impairmen (book value)
provision increa comprehensi s t provision
decreased by equity equity for t provision
sed ve income
method distribution
I. Joint venture
II. Associated enterprises
Wuhan
Anzai 62,196,139.5 61,678,984.3
-517,155.18
Cookware 3 5
Co., Ltd.
62,196,139.5 61,678,984.3
Subtotal -517,155.18
3 5
62,196,139.5 61,678,984.3
Total -517,155.18
3 5
The recoverable amount is determined as the net amount of the fair value less disposal expenses
□ Applicable Not applicable
The recoverable amount is determined as the present value of estimated future cash flow of assets
□ Applicable Not applicable
13. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1,243,210,689.64 1,303,075,391.03
Total 1,243,210,689.64 1,303,075,391.03
(1) Fixed assets
Unit: RMB
Buildings and General Special Transport
Item Total
structures equipment equipment facilities
I. Original book value:
1. Opening balance 1,223,555,061.57 296,185,619.01 970,045,460.97 32,943,632.66 2,522,729,774.21
2. Increase 15,254,301.96 20,812,950.05 43,960,772.50 4,119,896.35 84,147,920.86
(1) Acquisition 3,885,864.04 20,174,238.28 36,665,545.92 4,119,896.35 64,845,544.59
(2) Transferred in from
11,368,437.92 638,711.77 7,295,226.58 19,302,376.27
construction in progress
(3) Increase from enterprise
merger
3. Decrease 4,179,352.03 21,612,225.91 48,057,938.09 2,888,015.40 76,737,531.43
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2023 Annual Report of Zhejiang Supor Co., Ltd.
(1) Disposal or scrapping 4,179,352.03 21,537,004.66 47,799,384.47 2,888,015.40 76,403,756.56
(2) Transfer into construction in
75,221.25 258,553.62 333,774.87
progress
4. Impact of change in exchange rate -389,600.22 -93,480.07 -798,344.72 -1,352.91 -1,282,777.92
5. Closing balance 1,234,240,411.28 295,292,863.08 965,149,950.66 34,174,160.70 2,528,857,385.72
II. Accumulated depreciation
1. Opening balance 374,701,516.70 215,850,570.93 602,573,724.20 26,528,571.35 1,219,654,383.18
2. Increase 44,437,029.92 27,435,004.65 58,507,811.29 2,756,041.86 133,135,887.72
(1) Provision 44,437,029.92 27,435,004.65 58,507,811.29 2,756,041.86 133,135,887.72
3. Decrease 1,987,442.21 19,269,223.30 42,891,396.96 2,681,321.35 66,829,383.82
(1) Disposal or scrapping 1,987,442.21 19,226,031.12 42,780,438.29 2,681,321.35 66,675,232.97
(2) Transfer into construction in
43,192.18 110,958.67 154,150.85
progress
4. Impact of change in exchange rate -148,839.68 -65,174.12 -394,167.03 -9,784.89 -617,965.72
5. Closing balance 417,002,264.73 223,951,178.16 617,795,971.50 26,593,506.97 1,285,342,921.36
III. Impairment provision
1. Opening balance
2. Increase 303,774.72 303,774.72
(1) Provision 303,774.72 303,774.72
3. Decrease
(1) Disposal or scrapping
4. Closing balance 303,774.72 303,774.72
IV. Book value
1. Closing book value 817,238,146.55 71,037,910.20 347,353,979.16 7,580,653.73 1,243,210,689.64
2. Opening book value 848,853,544.87 80,335,048.08 367,471,736.77 6,415,061.31 1,303,075,391.03
(2) Fixed assets with property ownership certificate unsettled
Unit: RMB
Item Book value Reasons for unsettlement
After all projects are completed, and the completion and settlement
Function dormitory of Shaoxing Supor 34,497,759.97 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.3 plant of Shaoxing Supor 25,246,766.02 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.1 plant of Shaoxing Supor 23,485,831.72 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.8 plant of Shaoxing Supor 27,812,506.23 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
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2023 Annual Report of Zhejiang Supor Co., Ltd.
After all projects are completed, and the completion and settlement
Function cafeteria of Shaoxing Supor 11,489,781.53 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.12 plant of Shaoxing Supor 11,832,158.13 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Transformer substation (35 kV) of
1,106,864.71 procedures are fulfilled, the property ownership certificate shall be
Shaoxing Supor
processed uniformly
After all projects are completed, and the completion and settlement
No.13 plant of Shaoxing Supor 15,401,201.97 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.14 plant of Shaoxing Supor 23,499,440.07 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.15 plant of Shaoxing Supor 40,834,008.34 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Forklift charging room of Shaoxing Supor 845,522.44 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
13-B# warehouse project of Shaoxing
13,216,929.29 procedures are fulfilled, the property ownership certificate shall be
Supor
processed uniformly
Transfer procedures of land use right certificate are not settled due to
Generator room of P&R Products 1,070.89
land ownership issue
Water pump building and structures of P&R Transfer procedures of land use right certificate are not settled due to
74,446.36
Products land ownership issue
Extended plant for bakelite workshop of Transfer procedures of land use right certificate are not settled due to
164,322.47
P&R Products land ownership issue
Transfer procedures of land use right certificate are not settled due to
Polishing workshop of P&R Products 80,640.00
land ownership issue
Total 229,589,250.14
14. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 26,862,380.61 12,005,654.73
Total 26,862,380.61 12,005,654.73
(1) Details of construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Warehouse project of
11,014,567.00 11,014,567.00
Shaoxing Supor
Shaoxing Supor fire
20,185,019.07 20,185,019.07
protection renovation project
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Piecemeal projects 5,844,384.84 5,844,384.84 82,038.73 82,038.73
Equipment payment 832,976.70 832,976.70 909,049.00 909,049.00
Total 26,862,380.61 26,862,380.61 12,005,654.73 12,005,654.73
(2) Impairment test of the construction in progress
□ Applicable Not applicable
15. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Item Buildings and structures Land Total
I. Original book value:
1. Opening balance 263,207,787.03 3,228,879.08 266,436,666.11
2. Increase 86,837,495.69 86,837,495.69
3. Decrease 7,601,989.10 7,601,989.10
4. Exchange rate effect -9,149.81 54,752.69 45,602.88
5. Closing balance 342,434,143.81 3,283,631.77 345,717,775.58
II. Accumulated depreciation
1. Opening balance 75,512,489.83 205,213.46 75,717,703.29
2. Increase 49,480,267.17 103,851.78 49,584,118.95
(1) Provision 49,480,267.17 103,851.78 49,584,118.95
3. Decrease 3,079,194.21 3,079,194.21
(1) Disposal 3,079,194.21 3,079,194.21
4. Exchange rate effect -12,400.29 3,974.70 -8,425.59
5. Closing balance 121,901,162.50 313,039.94 122,214,202.44
III. Impairment provision
IV. Book value
1. Closing book value 220,532,981.31 2,970,591.83 223,503,573.14
2. Opening book value 187,695,297.20 3,023,665.62 190,718,962.82
(2) Impairment test of right-of-use assets
□ Applicable Not applicable
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2023 Annual Report of Zhejiang Supor Co., Ltd.
16. Intangible assets
(1) Intangible assets
Unit: RMB
Pollutant
Trademark use
Item Land use right Software Discharge Total
right
Permit
I. Original book value:
1. Opening balance 475,027,652.21 47,328,811.32 98,175,198.47 620,531,662.00
2. Increase 5,809,868.28 9,894,760.97 15,704,629.25
(1) Acquisition 5,809,868.28 9,894,760.97 15,704,629.25
(2) In-house R&D
(3) Increase from enterprise merger
3. Decrease 1,704,286.59 1,704,286.59
(1) Disposal 1,704,286.59 1,704,286.59
4. Impact of change in exchange rate -60,860.67 6,030.05 -54,830.62
5. Closing balance 474,966,791.54 47,328,811.32 102,286,810.21 9,894,760.97 634,477,174.04
II. Accumulated amortization
1. Opening balance 98,466,631.62 33,085,117.90 48,962,179.32 180,513,928.84
2. Increase 9,978,253.20 4,732,881.13 10,011,431.48 1,978,952.20 26,701,518.01
(1) Provision 9,978,253.20 4,732,881.13 10,011,431.48 1,978,952.20 26,701,518.01
3. Decrease 1,698,569.58 1,698,569.58
(1) Disposal 1,698,569.58 1,698,569.58
4. Impact of change in exchange rate -23,068.69 4,522.74 -18,545.95
5. Closing balance 108,421,816.13 37,817,999.03 57,279,563.96 1,978,952.20 205,498,331.32
III. Impairment provision
IV. Book value
1. Closing book value 366,544,975.41 9,510,812.29 45,007,246.25 7,915,808.77 428,978,842.72
2. Opening book value 376,561,020.59 14,243,693.42 49,213,019.15 440,017,733.16
At the end of this period, the proportion of intangible assets formed through internal R&D in the balance of intangible assets is 0.00%.
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17. Deferred income tax assets/deferred income tax liabilities
(1) Un-offset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Impairment provision of assets 121,098,089.15 26,260,667.30 104,854,363.88 23,059,580.50
Profits not realized by internal
69,741,065.39 16,436,357.10 80,178,943.70 19,496,741.80
transaction
Deductible losses 18,987,969.57 4,474,069.98 16,402,564.88 3,626,289.50
Accrued expenses 1,379,497,142.55 331,107,609.67 1,349,115,519.54 326,749,720.17
Accrued salary 60,023,338.88 14,699,395.04 42,347,931.51 10,586,982.88
Estimated liabilities 7,258,295.50 1,088,744.33 12,640,441.72 1,896,066.26
Share-based payment 107,454,470.04 24,615,719.01 51,889,706.92 12,000,187.47
Expected returns 10,173,886.95 2,449,174.32 8,355,059.11 2,052,992.64
Lease obligation 224,849,380.79 53,129,092.96 198,844,124.74 48,991,135.15
Total 1,999,083,638.82 474,260,829.71 1,864,628,656.00 448,459,696.37
(2) Un-offset deferred income tax liabilities
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Right-of-use assets 223,503,573.14 52,776,659.15 190,718,962.82 46,986,767.52
Depreciation of fixed assets 8,198,493.05 1,231,924.26
Total 231,702,066.19 54,008,583.41 190,718,962.82 46,986,767.52
(3) Deferred income tax assets or liabilities presented with net amount after offsetting
Unit: RMB
Offsetting amount Offsetting amount
Closing balance of Opening balance of
between deferred between deferred
deferred income tax deferred income tax
Item income tax assets and income tax assets and
assets or liabilities assets or liabilities after
liabilities at the end of liabilities at the
after offsetting offsetting
the period beginning of the period
Deferred income tax assets 54,008,583.41 420,252,246.30 46,986,767.52 401,472,928.85
Deferred income tax liabilities 54,008,583.41 46,986,767.52
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2023 Annual Report of Zhejiang Supor Co., Ltd.
(4) Detail about unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 16,278,431.89 15,629,891.75
Deductible losses 56,282,437.20 28,216,721.82
Total 72,560,869.09 43,846,613.57
(5) Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
Closing balance closing
Year Opening balance Remarks
amount
2024 8,287,689.09 8,287,689.09
2025 6,945,189.33 6,945,189.33
2026 7,751,051.17 7,751,051.17
2027 5,232,792.23 5,232,792.23
2028 28,065,715.38
Total 56,282,437.20 28,216,721.82
18. Assets with title or use right restrictions
Unit: RMB
End of the term Beginning of the term
Item
Type of Type of
Book balance Book value Restriction Book balance Book value Restriction
restriction restriction
Monetary Bank acceptance Bank acceptance
476,860,000.00 476,860,000.00 Frozen 254,129,233.86 254,129,233.86 Frozen
capital bill security bill security
Deposit security for Deposit security
Monetary
58,000,000.00 58,000,000.00 Frozen advance payment 58,000,000.00 58,000,000.00 Frozen for advance
capital
financing payment financing
Security and frozen Security and frozen
Monetary funds of e- funds of e-
613,739.88 613,739.88 Frozen 975,570.02 975,570.02 Frozen
capital commerce commerce
platforms platforms
Write off the frozen Write off the
Monetary amount in the bank frozen amount in
30,423.72 30,423.72 Frozen 8,541.04 8,541.04 Frozen
capital account of the the bank account of
branch the branch
Frozen funds of
term deposits
Monetary
12,546,000.00 12,546,000.00 Frozen pledged by issuing
capital
bank acceptance
bills.
Frozen funds for
Monetary
82,189.64 82,189.64 Frozen the change of
capital
industrial and
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2023 Annual Report of Zhejiang Supor Co., Ltd.
commercial legal
person
Total 535,504,163.60 535,504,163.60 325,741,534.56 325,741,534.56
19. Short-term loans
(1) Classification of short-term loans
Unit: RMB
Item Closing balance Opening balance
Bank acceptance discount 199,741,167.36
Total 199,741,167.36
There are no overdue and unpaid loans at the end of this year.
20. Notes payable
Unit: RMB
Type Closing balance Opening balance
Bank acceptance bill 1,235,000,000.00 1,057,611,900.00
Total 1,235,000,000.00 1,057,611,900.00
The amount of due unpaid notes payable is RMB 0.00 at the end of the current period.
The above amounts are all notes payable due within one year.
21. Accounts payable
(1) Details
Unit: RMB
Item Closing balance Opening balance
Goods payment 1,757,840,901.20 1,274,889,065.48
Equipment and engineering funds 57,759,242.79 67,104,579.12
Cost payment 1,390,007,709.19 1,293,527,903.59
Total 3,205,607,853.18 2,635,521,548.19
Other remarks:
As at December 31, 2023, Supor had no significant accounts payable with an age of more than one year ( December 31, 2022: None).
22. Other payables
Unit: RMB
Item Closing balance Opening balance
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Other payables 147,617,550.27 137,729,222.63
Total 147,617,550.27 137,729,222.63
(1) Other payables
1) Listing by nature
Unit: RMB
Item Closing balance Opening balance
Deposit as security 103,302,075.21 99,096,157.97
Temporary receipts payable 21,367,823.48 21,538,362.25
Others 22,947,651.58 17,094,702.41
Total 147,617,550.27 137,729,222.63
23. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advances on sales 862,706,076.18 1,153,932,879.53
Total 862,706,076.18 1,153,932,879.53
The amount with major changes in its book value during the reporting period and its reasons
Unit: RMB
Item Variation amount Variation reason
Including the revenue recognized by the amount of book value of contract
Advances on sales -1,153,932,879.53
liabilities at the beginning of the year
The amount increased due to receipt of cash (excluding the amount recognized as
Advances on sales 862,706,076.18
revenue in the current year)
Total -291,226,803.35 ——
24. Payable employee remuneration
(1) Details
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term employee remuneration 282,609,935.60 1,728,602,885.42 1,691,000,430.96 320,212,390.06
II. Post-employment Benefits - Defined
5,885,187.48 101,998,486.56 97,688,450.02 10,195,224.02
Contribution Plan
III. Termination benefit 580,305.42 4,954,852.15 3,804,066.37 1,731,091.20
Total 289,075,428.50 1,835,556,224.13 1,792,492,947.35 332,138,705.28
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2023 Annual Report of Zhejiang Supor Co., Ltd.
(2) Details of short-term employee remuneration
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus, allowance and subsidy 238,523,830.57 1,534,488,739.84 1,501,728,347.98 271,284,222.43
2. Employee services and benefits 3,768,543.21 68,061,382.96 67,650,660.01 4,179,266.16
3. Social insurance premiums 4,059,152.74 61,794,443.09 59,112,247.75 6,741,348.08
Including: medical insurance
3,742,971.88 57,566,222.64 54,977,255.28 6,331,939.24
premium
occupational injuries
316,180.86 4,228,220.45 4,134,992.47 409,408.84
premium
4. Housing accumulation fund 163,804.08 44,473,847.74 44,533,506.82 104,145.00
5. Trade union fund and employee
36,094,605.00 19,784,471.79 17,975,668.40 37,903,408.39
education fund
Total 282,609,935.60 1,728,602,885.42 1,691,000,430.96 320,212,390.06
(3) Details of defined contribution plan
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic endowment insurance 5,684,246.20 98,222,479.40 94,062,546.64 9,844,178.96
2. Unemployment insurance premiums 200,941.28 3,776,007.16 3,625,903.38 351,045.06
Total 5,885,187.48 101,998,486.56 97,688,450.02 10,195,224.02
Other remarks:
On March 25, 2019, the General Office of the State Council released the Opinions on Comprehensively Promoting the Combined
Implementation of Maternity Insurance and Basic Medical Insurance for Employees, which promotes the combined implementation
of the two insurances.
(4) Termination benefit
The termination benefit paid by Supor in the year for termination of labor relations is RMB 3,804,066.37 (2022: RMB 9,120,232.80),
and the outstanding payable amount at the end of the year is RMB 1,731,091.20 (as of December 31, 2022: RMB 580,305.42).
25. Taxes and fees payable
Unit: RMB
Item Closing balance Opening balance
VAT 37,895,819.95 29,951,962.61
Enterprise income tax 266,724,688.22 141,680,509.34
Individual income tax 3,461,145.87 3,309,618.70
Urban maintenance and construction tax 9,463,195.64 5,065,611.60
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Housing property tax 10,999,275.32 10,036,243.48
Land use tax 6,702,356.51 6,702,356.53
Stamp tax 4,433,184.32 4,127,604.37
Education surcharge 4,057,809.94 2,201,227.48
Local education surcharge 2,725,257.74 1,533,579.16
Total 346,462,733.51 204,608,713.27
26. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease obligations due within one year 47,568,255.43 41,924,940.24
Total 47,568,255.43 41,924,940.24
27. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Refund payable 25,459,245.72 22,621,360.23
Endorsed bank acceptance bill unrecognized 10,761,655.33 22,383,800.87
Output tax to be written-off 111,431,313.35 149,694,451.88
Total 147,652,214.40 194,699,612.98
28. Lease obligation
Unit: RMB
Item Closing balance Opening balance
Long-term lease obligations 224,849,380.79 192,704,856.82
Minus: Lease obligations due within one year -47,568,255.43 -41,924,940.24
Total 177,281,125.36 150,779,916.58
Other remarks:
The Group also rents employee dormitories, temporary warehouses, etc. for a lease term up to one year, representing short-term leases.
The Group has chosen not to recognize the right-of-use assets and lease obligations for these leases.
29. Long-term payroll payable to employees
(1) Long-term payroll payable to employees
Unit: RMB
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Item Closing balance Opening balance
Termination benefit 1,128,743.89 1,441,111.55
Other long-term benefits 14,707,829.27
Total 15,836,573.16 1,441,111.55
30. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Reasons for the balance
See Note XVI "Commitments and Contingencies" for
Pending lawsuit 5,538,727.50 11,150,000.00
details
Financial guarantee See Note XVI "Commitments and Contingencies" for
1,719,568.00 1,490,441.72
contract details
Total 7,258,295.50 12,640,441.72
31. Share capital
Unit: RMB
Increase/decrease in the period (+, -)
Opening Closing
balance Converted balance
New shares Shares bonus Others Subtotal
capital
Total shares 808,654,476.00 -1,945,819.00 -1,945,819.00 806,708,657.00
Other remarks:
The decrease in share capital in the current period is RMB 1,945,819.00, which refers to the repurchase and deregistration of 75,750
restricted stocks from the separated equity incentive objects at the price of RMB 1 per share, resulting in the corresponding decrease
of share capital in the amount of RMB 75,750.00. The 19th meeting of the 7th Board of Directors in 2023 reviewed and approved the
Proposal to terminate the repurchase of Certain Public Shares, thereby the Company repurchased and cancelled 1,870,069 shares,
representing a corresponding reduction of RMB 1,870,069.00 in share capital.
32. Capital reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other capital reserve 125,368,989.44 47,741,637.58 173,110,627.02
Total 125,368,989.44 47,741,637.58 173,110,627.02
Remarks (including increase and decrease in current period and variation reason):
1) The increase of RMB 47,741,637.58 in other capital reserves in the current period refers to ① the equity-settled share-based payment
cost of RMB 45,786,307.92 in the current period included in the capital reserve (other capital reserves), as detailed in Note XV
"Description of Share-based Payment" to these financial statements. ② The estimated deductible amount of the share-based payment
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2023 Annual Report of Zhejiang Supor Co., Ltd.
in the future of this year exceeds the cost recognized in the waiting period. The deferred income tax assets formed by the excess of
RMB 1,955,329.66 are directly recognized through capital reserve - other capital reserves.
33. Treasury shares
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Treasury share 99,724,823.49 480,065,768.74 91,733,258.47 488,057,333.76
Total 99,724,823.49 480,065,768.74 91,733,258.47 488,057,333.76
Remarks (including increase and decrease in current period and variation reason):
1) The 12th Session of the Seventh Board of Directors of the Company and 2021 Annual General Meeting of Shareholders deliberated
and approved the Proposal on Repurchasing Certain Public Shares. The Company planned to use its self-owned capital to buy back
its shares for the write-off and decrease of the registered capital and the implementation of equity incentives. The increase in the year
is due to the Company's repurchase of 1,545,000 shares of the Company from the secondary market through centralized bid transactions
during the reporting period, totaling RMB 79,937,608.83, including the repurchase handling fee of RMB 8073.73. Among them, RMB
79,945,682.56 of treasury shares are intended for cancellation or implementation of equity incentives.
2) The 2022 Annual General Meeting of Shareholders of the Company deliberated and approved the Proposal on Repurchasing Certain
Public Shares, and the Company planned to repurchase its shares through self-owned capital for part cancellation and decrease of the
registered capital and implementation of equity incentive. The increase in the year is due to the Company's repurchase of 8,150,000
shares of the Company from the secondary market through centralized bid transactions during the reporting period, totaling RMB
400,080,671.30, including the repurchase handling fee of RMB 39,414.88. Among them, RMB 400,120,086.18 of treasury shares are
intended for cancellation or implementation of equity incentives.
3) The treasury share capital decreased by RMB 91,733,258.47 in the year, ① The 11th meeting of the 7th Board of Directors in 2022
and the 15th meeting of the 7th Board of Directors in 2022 approved the Proposal on Granting Restricted Stocks to Incentive Objects.
A total of 79,000 restricted stocks have been granted to incentive objects this year, with a grant amount of RMB 3,650,590.00 ②At
the 14th meeting of the 7th Board of Directors in 2022, it was decided that thirteen incentive recipients of the company, who have
resigned and no longer meet the incentive conditions, will repurchase and cancel a total of 53,000 restricted shares at a price of RMB
1 per share, reducing the repurchase obligation by RMB 53,000.00. ③The 19th meeting of the 7th Board of Directors of the company
in 2023 has decided that five incentive recipients who have left the company and no longer meet the incentive conditions will repurchase
and cancel a total of 22,750 restricted shares at a price of RMB 1 per share, reducing the repurchase obligation by RMB 22,750.00.
④This year, the company cancelled and repurchased 1,870,069 shares, totaling RMB 88,006,918.47.
34. Other comprehensive incomes
Unit: RMB
Amount incurred during this period
Minus: other
Minus: other
comprehensive
Current period comprehensive
Item Opening balance incomes Minus: Attributable Closing balance
cumulative incomes carried Attributable to
carried forward income tax to minority
before income forward parent company
transferred to expenses shareholder
tax transferred to
profits and
retained earnings
losses
II. Other
-20,454,823.26 1,550,791.25 1,278,368.67 272,422.58 -19,176,454.59
comprehensive
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2023 Annual Report of Zhejiang Supor Co., Ltd.
incomes that can
be reclassified
into profit and
loss
Conversion
difference in
foreign currency -20,454,823.26 1,550,791.25 1,278,368.67 272,422.58 -19,176,454.59
financial
statement
Total other
comprehensive -20,454,823.26 1,550,791.25 1,278,368.67 272,422.58 -19,176,454.59
income
35. Surplus reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserve 356,924,811.32 85,151,939.97 86,136,849.47 355,939,901.82
Total 356,924,811.32 85,151,939.97 86,136,849.47 355,939,901.82
Remarks on surplus reserve (including increase and decrease in current period and variation reason):
The increase in surplus reserve this year is based on the provision of statutory surplus reserve based on the company's net profit realized
this year. The cumulative statutory surplus reserve withdrawn by our company has reached 50% of the registered capital, and we will
no longer continue to withdraw statutory surplus reserve.The decrease in surplus reserve in the year is due to the cancellation of
1,870,069 repurchased shares of the Company, where the difference between the price paid for the cancellation of repurchased shares
and the face value of the shares is offset against the capital reserve - share capital premium, and the shortfall is offset against the surplus
reserve by RMB 86,136,849.47.
36. Undistributed profits
Unit: RMB
Item Current period Prior period
Undistributed profits at period beginning after adjustment 5,865,316,233.53 6,451,748,564.12
Plus: net profit attributable to owners of the parent company 2,179,798,147.27 2,067,659,526.97
Minus: withdrawal of statutory surplus reserve 85,151,939.97
Common share dividends payable 2,439,504,228.21 2,567,723,592.43
Grant of restricted stocks 3,650,590.00 86,368,265.13
Undistributed profits at the end of the period 5,516,807,622.62 5,865,316,233.53
Adjustment of undistributed profits at period beginning:
1). Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations, undistributed profit
at period beginning was changed by RMB 0.00.
2) Due to change of accounting policies, undistributed profit at period beginning was changed by RMB 0.00.
3) Due to rectification of important accounting errors, undistributed profit at period beginning was changed by RMB 0.00.
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4) Due to change of merger scope resulted from same control, undistributed profit at period beginning was changed by RMB 0.00.
5) Due to other adjustment, undistributed profit at period beginning was changed by RMB 0.00.
37. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Main business 21,047,461,714.13 15,482,918,819.24 19,947,308,992.05 14,779,802,587.93
Revenue from other operations 256,486,928.53 217,210,030.07 223,218,524.61 189,526,252.64
Total 21,303,948,642.66 15,700,128,849.31 20,170,527,516.66 14,969,328,840.57
Whether the net profit before or after non-recurring profit and loss are deducted, whichever is lower, is negative
□ Yes No
Breakdown information of operating income and operating cost:
Unit: RMB
Contract classification Operating income Operating cost
Business type
Including:
Cookware 6,056,346,176.44 4,320,256,178.21
Electric appliances 14,963,200,632.70 11,141,680,549.71
Others 284,401,833.52 238,192,121.39
Classified by business area
Including:
Domestic 15,107,615,309.80 10,771,952,519.69
Foreign 6,196,333,332.86 4,928,176,329.62
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of this reporting period, the revenue from the performance obligations that have not been fulfilled or completely fulfilled
under existing contract is RMB 862,706,076.18, of which RMB 862,706,076.18 is expected to be recognized as income in 2024.
38. Taxes and surcharges
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Urban maintenance and construction tax 64,295,557.27 60,826,714.98
Education surcharge 27,696,208.95 26,242,005.20
Housing property tax 13,343,358.14 12,328,977.15
Land use tax 1,630,388.68 1,954,421.94
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Vehicle and vessel use tax 51,074.40 58,546.40
Stamp tax 16,715,072.33 11,651,100.02
Local education surcharge 18,464,139.22 17,555,804.52
Environmental protection tax 54,852.44 75,969.20
Total 142,250,651.43 130,693,539.41
Other remarks:
See Note VI. Taxes for calculating standard of taxes and surcharges.
39. Administrative expenses
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Employee remuneration 232,400,181.10 218,635,148.78
Office, business traveling and depreciation and
89,412,248.70 87,381,475.69
amortization expenses
Cost of equity incentive and performance incentive
35,864,304.26 36,289,361.98
fund
Others 35,921,232.76 31,754,653.83
Total 393,597,966.82 374,060,640.28
40. Sales expense
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Advertising, sales promotion, and special gift
1,706,028,199.93 1,552,778,059.77
expenses
Employee remuneration 363,916,013.14 401,609,998.06
Office and business traveling expenses 146,017,301.34 124,217,367.02
Cost of equity incentive and performance incentive
11,796,303.73 10,709,983.00
fund
Others 70,089,607.60 66,981,650.78
Total 2,297,847,425.74 2,156,297,058.63
41. R&D expense
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Employee remuneration 218,391,753.12 202,158,417.41
Trial production experiment cost and consumption
80,046,107.59 91,696,672.99
expenditure
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New product design cost 42,518,700.10 47,898,023.51
Patent and external institutional fees 52,659,379.35 43,628,185.52
Cost of equity incentive and performance incentive
10,098,463.21 7,847,891.00
fund
Others 27,574,132.92 23,030,166.56
Total 431,288,536.29 416,259,356.99
42. Financial expenses
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Interest expense of loans and accounts payables 3,816,340.07 142,176.50
Interest revenue of deposits and receivables -80,404,233.22 -76,571,126.41
Interest expense of lease obligations 10,526,971.78 9,136,772.28
Gain on net foreign exchange -6,403,128.91 -34,786,425.70
Handling fee and other financial expenses 4,834,108.92 4,655,315.42
Total -67,629,941.36 -97,423,287.91
43. Other income
(1) Classification of other income
Amount recognized through non-
Amount incurred during this Amount incurred
Source of other revenues recurring profit or loss of the
period during prior period
current year
Government subsidies concerning daily
244,371,726.06 235,160,623.11 191,579,657.04
activities
Withholding and paying tax expense and
1,188,766.09 1,534,189.23 1,188,766.09
handling fee refund
Input tax plus deduction 3,357,048.16 3,357,048.16
Total 248,917,540.31 236,694,812.34 196,125,471.29
(2) Government subsidies concerning daily activities
Amount incurred during this Amount incurred
Subsidy item Related to assets/income
period during prior period
Project subsidy 25,116,349.04 33,414,476.64 Related to benefits
Government reward 166,463,308.00 164,637,740.59 Related to benefits
Tax returns 52,792,069.02 37,108,405.88 Related to benefits
Total 244,371,726.06 235,160,623.11
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44. Gains from changes in fair value
Unit: RMB
Resource for gains from changes in fair value Amount incurred during this period Amount incurred during prior period
Transactional financial assets 1,137,787.54 1,382,527.79
Total 1,137,787.54 1,382,527.79
45. Investment incomes
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Long-term equity investment income under the equity
-529,681.40 -3,262,848.85
method
Investment income from disposal of transactional
7,970,271.40 4,386,059.07
financial assets
Interest from term deposit 7,432,119.49 34,428,058.56
Investment income of debt investment during the
29,040,658.23 16,631,649.43
holding period
Investment income from disposal of debt investments 4,898,876.71 1,864,109.59
Total 48,812,244.43 54,047,027.80
46. Credit impairment losses
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Loss for bad debts of other receivables -320,174.60 -1,388,421.68
Accounts receivable -25,670,079.70 35,810,880.38
Financial guarantee contract -229,126.28 96,856.52
Total -26,219,380.58 34,519,315.22
47. Asset impairment losses
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
I. Loss on inventory depreciation and impairment loss of
6,575,264.78 -11,352,717.26
contract performance cost
IV. Loss on fixed asset impairment loss -303,774.72
Total 6,271,490.06 -11,352,717.26
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2023 Annual Report of Zhejiang Supor Co., Ltd.
48. Assets disposal income
Unit: RMB
Amount incurred during prior
Source of assets disposal income Amount incurred during this period
period
Disposal losses of fixed assets -4,212,813.38 -2,002,558.23
Proceeds from the disposal of the right-of-use assets 151,301.37 639,053.38
Total -4,061,512.01 -1,363,504.85
49. Non-operating income
Unit: RMB
Amount recognized through
Amount incurred during this Amount incurred during
Item non-recurring profit or loss
period prior period
of the current period
Damage and scrapping gains of non-
171,685.02 775,693.99 171,685.02
current assets
Including: Gains from scraping of fixed
171,685.02 775,693.99 171,685.02
assets
Default fine revenue 9,243,680.81 11,310,799.88 9,243,680.81
Reversion of estimated liabilities 5,150,000.00 5,150,000.00
Others 703,471.60 2,348,632.82 703,471.60
Total 15,268,837.43 14,435,126.69 15,268,837.43
Other remarks:
50. Non-operating expense
Unit: RMB
Amount recognized through
Amount incurred during this Amount incurred during
Item non-recurring profit or loss
period prior period
of the current period
Donation expenditures 5,868,685.02 2,663,130.43 5,868,685.02
Damage and scrapping losses of non-
3,066,439.87 601,296.71 3,066,439.87
current assets
Including: Scrapping losses of fixed
3,066,439.87 601,296.71 3,066,439.87
assets
Others 2,938,582.02 1,199,925.30 2,938,582.02
Total 11,873,706.91 4,464,352.44 11,873,706.91
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51. Income tax expenses
(1) Details
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Current income tax expenses 522,122,005.28 468,983,078.04
Deferred income tax expenses -16,823,987.79 10,050,086.32
Total 505,298,017.49 479,033,164.36
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
Item Amount incurred during this period
Total profit 2,684,718,454.70
Income tax expenses based on statutory/applicable tax rate 671,179,613.68
Effect of different tax rate applicable to subsidiaries -122,260,430.66
Effect of prior income tax reconciliation -21,529,266.14
Effect of non-deductible costs, expenses and losses 11,607,160.43
Effect of deductible temporary differences or deductible losses of unrecognized deferred
9,329,818.57
income tax assets in the current period
Deduction for the additional calculation of R&D expense -42,842,474.68
Using previous years' deductible losses -147,710.21
Effect of tax rate variation on deferred income taxes balance at the beginning of the period -38,693.50
Income tax expenses 505,298,017.49
52. Other comprehensive incomes
See Note 34 for details.
53. Items of cash flow statement
(1) Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Receipt of government subsidies 196,125,471.29 199,599,828.51
Receipt of deposit, security and employee reserve fund loan 4,205,917.24 26,496,254.72
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Interest revenues 53,992,386.07 66,264,180.37
Others 13,569,937.64 4,311,161.59
Total 267,893,712.24 296,671,425.19
Other cash payments related to operating activities
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Cash payment for sales expense 1,633,323,496.20 1,594,110,566.41
Cash payment for administrative expenses 108,299,990.50 95,471,984.49
Cash payment for R&D expenses 200,066,224.77 203,782,142.17
Donations payment 5,868,685.02 2,663,130.43
Other payments 7,351,491.57 9,398,008.04
Total 1,954,909,888.06 1,905,425,831.54
(2) Cash related to investing activities
Other cash receipts related to investing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Recovery of financial products, and principal of term deposit 2,738,215,081.02 3,103,136,438.00
Total 2,738,215,081.02 3,103,136,438.00
Other cash payments related to investing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Cash payment for financial products and term deposit 2,923,123,711.63 3,597,439,490.93
Total 2,923,123,711.63 3,597,439,490.93
(3) Cash related to financing activities
Other cash payments related to financing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Receipt of equity incentive payment 79,000.00 2,463,000.00
Total 79,000.00 2,463,000.00
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Other cash payments related to financing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Repurchase of stocks and handling fees 480,141,518.74 162,978,253.14
Cash paid for repayment of lease obligation principal and
60,599,875.73 45,922,594.90
interest
Total 540,741,394.47 208,900,848.04
Changes in various liabilities arising from financing activities
Applicable □Not applicable
Unit: RMB
Increase Decrease
Item Opening balance Closing balance
Non-cash Non-cash
Cash change Cash change
change change
250,000,000.0
Short-term borrowings 446,779,722.15 2,961,445.21 199,741,167.36
0
Fund allocation of
13,886,668.74 1,724,666.42 15,611,335.16
related parts
Other payable-
Restricted stock 2,439,000.00 79,000.00 75,750.00 2,442,250.00
repurchase obligation
Other payables - 2,439,504,228. 2,439,504,228
dividends payable 21 .21
Lease liabilities 192,704,856.82 92,744,399.70 60,599,875.73 224,849,380.79
2,535,210,073. 2,750,179,853
Total 209,030,525.56 448,583,388.57 442,644,133.31
12 .94
(4) Net amounts presented in cash flows
Item Related facts Basis of presentation as net amount Financial impacts
Cash inflows and outflows on items which are
Short-term borrowings Bank acceptance discount quick in circulation, large in amounts, and short 250,000,000.00
in maturity
54. Supplementary information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
Amount of the prior
Supplement information Amount of this period
period
1. Reconciliation of net profit to cash flow from operating activities
Net profit 2,179,420,437.21 2,066,176,439.62
Plus: impairment provision of assets -6,271,490.06 11,352,717.26
Credit impairment loss 26,219,380.58 -34,519,315.22
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depreciation of fixed assets, oil and gas assets, productive biological
133,135,887.72 128,264,310.47
assets
depreciation of right-of-use assets 49,584,118.95 47,571,308.63
amortization of intangible assets 26,701,518.01 23,555,707.71
amortization of long-term unamortized expenses
loss on disposal of fixed assets, intangible assets and other long-term
4,061,512.01 1,363,504.85
assets ("-" for gains)
fixed assets retirement loss ("-" for gains) 2,894,754.85 -174,397.28
losses from changes in fair value ("-" for revenue) -1,137,787.54 -1,382,527.79
financial expenses ("-" for gains) -10,405,102.90 -12,246,928.46
investments losses ("-" for gains) -48,824,770.65 -53,905,404.54
decrease of deferred income tax assets ("-" for increase) -16,823,987.79 10,050,086.32
increase of deferred income tax liabilities ("-" for decrease)
decrease in inventories ("-" for increase) 238,814,733.91 590,241,481.65
decrease in operating receivables ("-" for increase) -1,010,714,769.68 751,425,931.09
decrease in operating payables ("-" for increase) 644,777,222.70 -319,790,108.30
others -176,522,321.12 -48,027,560.17
net cash flows from operating activities 2,034,909,336.20 3,159,955,245.84
2. Significant investing and financing activities not related to cash receipts and
payments
Conversion of debt into capital
Convertible bonds to be matured within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 1,405,752,936.36 2,395,932,752.38
Minus: Opening balance of cash 2,395,932,752.38 2,443,731,679.06
Plus: closing balance of cash equivalents
Minus: opening balance of cash equivalents
Net increase in cash and cash equivalents -990,179,816.02 -47,798,926.68
(2) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 1,405,752,936.36 2,395,932,752.38
Including: Cash on hand 62,594.14 56,591.47
Cash in bank on demand for payment 1,357,366,603.33 2,361,573,752.74
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Other monetary capitals on demand for payment 48,323,738.89 34,302,408.17
II. Cash equivalents
III. Balance of cash and cash equivalents at the end of the period 1,405,752,936.36 2,395,932,752.38
(3) Monetary funds that do not belong to cash and cash equivalents
Unit: RMB
Reasons that do not
Item Amount of this period Amount of the prior period belong to cash and cash
equivalents
Restricted funds in bank deposit 30,423.72 90,730.68 Restricted usage rights
Term deposit beyond three months 1,607,020,342.48 854,012,620.81 Restricted usage rights
Deposit security for advance payment financing 58,000,000.00 58,000,000.00 Restricted usage rights
Bank acceptance bill security 476,860,000.00 254,129,233.86 Restricted usage rights
Security and frozen funds of e-commerce platforms 613,739.88 975,570.02 Restricted usage rights
Total 2,142,524,506.08 1,167,208,155.37
55. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance in foreign
Item Conversion rate RMB equivalent
currencies
Monetary capital
Including: USD 45,024,429.69 7.0827 318,894,528.17
EUR 29,299.34 7.8592 230,269.37
GBP 0.67 9.0411 6.06
VND 37,874,627,823.50 0.00029207 11,062,042.55
SGD 89,553.52 5.3772 481,547.19
IDR 26,673,055,534.62 0.000461 12,296,278.60
Accounts receivable
Including: USD 39,500,231.16 7.0827 279,768,287.24
VND 8,168,244,650.50 0.00029207 2,385,699.22
IDR 8,763,160,043.00 0.000461 4,039,816.78
Accounts payable
Including: USD 1,450,614.74 7.0827 10,274,269.02
EUR 6,937.01 7.8592 54,519.35
VND 73,786,717,466.48 0.00029207 21,550,886.57
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SGD 58,994.00 5.3772 317,222.54
IDR 5,897,346,518.41 0.000461 2,718,676.74
(2) Description of overseas business entities, including important overseas business entities, indicated that its
main overseas business entity, recording currency and selection basis, as well as the reasons for changes of
recording currency shall be disclosed.
□ Applicable Not applicable
56. Lease
(1) The company as the lessee
Applicable □ Not applicable
Variable lease payments not recognized through measurement of lease obligation
□ Applicable Not applicable
Leasing costs of short-term leases or low value assets with simplified treatment
Applicable □ Not applicable
Unit: RMB
Item Year 2023 Year2022
Short term lease expenses with simplified
8,541,439.82 8,614,386.82
processing methods
Total cash outflows related to leasing 69,141,315.55 54,536,981.72
(2) The company as the leaser
Operating lease as the lessor
Applicable □ Not applicable
Unit: RMB
Among them: income related to variable
Item Rental Income lease payments not included in lease
payments
Real estate 1,412,896.44
Total 1,412,896.44
Financing lease as the lessor
□ Applicable Not applicable
Annual undiscounted lease receipts for the future five years
□ Applicable Not applicable
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(3) Sales profit and loss of financing leases recognized as manufacturer or distributor
□ Applicable Not applicable
VIII. R&D Expenditure
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Employee remuneration 218,391,753.12 202,158,417.41
Trial production experiment cost and
80,046,107.59 91,696,672.99
consumption expenditure
New product design cost 42,518,700.10 47,898,023.51
Patent and external institutional fees 52,659,379.35 43,628,185.52
Cost of equity incentive and performance
10,098,463.21 7,847,891.00
incentive fund
Others 27,574,132.92 23,030,166.56
Total 431,288,536.29 416,259,356.99
Including: expensed R&D expenditure 431,288,536.29 416,259,356.99
Capitalized R&D expenditure
IX. Change on merger scope
1. Others
There is no change in the merger scope of the Company in the period.
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise Group
Unit: RMB
Main Shareholding ratio
Place of Business Acquisition
Subsidiary name Registered capital operating
registration nature Direct Indirect method
place
Zhejiang Supor Electrical
Manufacturing
Appliances Manufacturing Co., 133,697,100.00 Hangzhou Hangzhou 100.00% Establishment
industry
Ltd [Note 1]
Zhejiang Shaoxing Supor
Manufacturing
Domestic Electrical Appliances 610,000,000.00 Shaoxing Shaoxing 100.00% Establishment
industry
Co., Ltd [Note 1]
Supor (Vietnam) Co., Ltd [Note Manufacturing
104,934,081.16 Vietnam Vietnam 100.00% Establishment
1] industry
Wuhan Supor Recycling Co.,
1,000,000.00 Wuhan Wuhan Commerce 100.00% Establishment
Ltd [Note 1]
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Wuhan Supor Cookware Co., Manufacturing
91,160,000.00 Wuhan Wuhan 25.00% 75.00% Establishment
Ltd [Note 1] [Note 2] industry
Hangzhou Omegna
Commercial Trade Co., Ltd 10,000,000.00 Hangzhou Hangzhou Commerce 100.00% Establishment
[Note 1]
Shanghai Supor Cookware
5,000,000.00 Shanghai Shanghai Commerce 100.00% Establishment
Marketing Co., Ltd [Note 1]
Enterprise
Wuhan Supor Pressure Cooker Manufacturing merger under
224,039,000.00 Wuhan Wuhan 100.00%
Co., Ltd [Note 1] industry the same
control
Enterprise
Zhejiang Supor Plastic & Manufacturing merger under
8,044,670.77 Yuhuan Yuhuan 100.00%
Rubber Co., Ltd. [Note 1] industry the same
control
Enterprise
Yuhuan Supor Cookware Sales merger not
8,000,000.00 Yuhuan Yuhuan Commerce 100.00%
Co., Ltd. [Note 1] under the same
control
Enterprise
merger under
SEADA [Note 1] 23,314,945.98 Singapore Singapore Commerce 51.00%
the same
control
Enterprise
AFS Vietnam Management merger under
2,453,486.50 Vietnam Vietnam Commerce 100.00%
Co., Ltd. [Note 1] [Note 3] the same
control
Shanghai WMF Enterprise Manufacturing
50,000,000.00 Shanghai Shanghai 100.00% Establishment
Development Co., Ltd [Note 1] industry
Zhejiang WMF Housewares Manufacturing
100,000,000.00 Yuhuan Yuhuan 100.00% Establishment
Co., Ltd [Note 1] industry
Zhejiang Shaoxing Supor
Manufacturing
Household Products Co., Ltd. 50,000,000.00 Shaoxing Shaoxing 100.00% Establishment
industry
[Note 1]
Zhejiang Supor Large Kitchen Manufacturing
100,000,000.00 Shaoxing Shaoxing 100.00% Establishment
Appliance Co., Ltd. [Note 1] industry
PT GROUPE SEB
32,714,774.74 Indonesia Indonesia Commerce 66.67% Establishment
INDONESIA MSD [Note 4]
Zhejiang Supor Water Heater Manufacturing
100,000,000.00 Shaoxing Shaoxing 52.00% Establishment
Co., Ltd [Note 1] [Note 5] industry
Hainan Supor E-commerce Co.,
8,000,000.00 Hainan Hainan Commerce 100.00% Establishment
Ltd [Note 1] [Note 6]
Hainan Tefal Trading Co., Ltd
10,000,000.00 Hainan Hainan Commerce 100.00% Establishment
[Note 1] [Note 6]
Unit: RMB
Explanation on shareholding ratio in subsidiary different from voting ratio:
Note 1: The following are abbreviations: Zhejiang Supor Electrical, Shaoxing Supor, Supor Vietnam, Wuhan Recycling, Wuhan Supor
Cookware, Omegna, Shanghai Marketing, Wuhan Supor Pressure Cooker, P&R Products, Wuhan Supor, Yuhuan Sales, SEADA, AFS,
Shanghai WMF Enterprise Development, Zhejiang WMF Housewares, Shaoxing Supor Housewares, Zhejiang Supor LKA, Supor
Water Heater, Hainan Supor E-commerce Company and Hainan Tefal Trading Company.
Note 2: The Company is subsidiary of Wuhan Supor Pressure Cooker Co., Ltd.; of which, Wuhan Supor Pressure Cooker Co., Ltd
holds 75% shares and the Company holds 25% shares.
Note 3: The Company holds 51% equity of SEADA, and AFS is totally held by SEADA. SEADA holds 100% shares of AFS.
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Note 4: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA, a subsidiary of the Company and PT
MULTIFORTUNA in Indonesia this year. SEADA holds 66.67% shares and PT MULTIFORTUNA holds 33.33% shares.
Note 5: Zhejiang Supor Water Heater Co., Ltd is jointly invested and established by the Company and Supor Group Co., Ltd. The
Company holds 52% of the shares, and Supor Group Co., Ltd holds 48% of the shares.
Note 6: Hainan Supor E-commerce Company and Hainan Tefal Trading Company are totally held by Zhejiang Supor Electrical.
2. Equity in joint venture or associated enterprises
(1) Insignificant joint venture or associated enterprises
Unit: RMB
Closing balance/amount incurred during Opening balance/amount incurred during
this period prior period
Associated enterprise ：
Book value of investments in associated
61,678,984.35 62,196,139.53
enterprises
Total amount of the following items
calculated based on shareholding ratio
-- Net profit -517,155.18 -3,404,472.11
-- Other comprehensive income
-- Total comprehensive income -517,155.18 -3,404,472.11
XI. Government subsidies
1. Government subsidies affirmed as per receivable at the end of reporting period
□ Applicable Not applicable
Reasons for not receiving the expected amount of government subsidies at expected time points
□ Applicable Not applicable
2. Liability projects with government subsidies
□ Applicable Not applicable
3. Government subsidy recognized through current profits and losses
Applicable □ Not applicable
Unit: RMB
Accounting item Amount incurred during this period Amount incurred during prior period
Other incomes 244,371,726.06 235,160,623.11
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VII. Risks related to financial instruments
1. Various risks arising from financial instruments
(I) Risk management objectives and policies
The Group aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to
minimize the adverse effects of risks on the Group's financial performance and maximize the interests of shareholders and other equity
investors. Based on such objectives, the Group's risk management policies are established to identify and analyze the risks faced by
the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk is the risk that the Group may encounter fluctuation in fair value of financial instruments or future cash
flows due to changes in exchange rate. The Group's foreign currency risk relates mainly to foreign currency monetary assets and
liabilities of the Group. When short-term imbalance occurred to foreign currency assets and liabilities, the Group may conduct foreign
exchange hedge or trade foreign currency at market exchange rate when necessary, in order to maintain the net risk exposure within an
acceptable level.
The list of foreign currency financial assets and liabilities at the end of the year in Supor is shown in Note VII. 55Foreign currency
monetary items.
Sensitivity analysis:
Assuming that other risk variables other than the exchange rate remain unchanged, the increase in shareholders' equities and net
profits due to the 1% appreciation of RMB due to the change in exchange rate of RMB against all foreign currencies as at 31 December
of the Group will be as follows. This influence is translated into RMB at the spot rate on the balance sheet date.
Shareholders' equities Net profit
December 31, 2023
USD 3,347,158.67 3,347,158.67
EUR 1,375.88 1,375.88
GBP 0.05 0.05
VND -64,825.16 -64,825.16
SGD 1,363.89 1,363.89
IDR 106,215.87 106,215.87
Total 3,391,289.20 3,391,289.20
December 31, 2022
USD 3,877,846.10 3,877,846.10
EUR 1,792.50 1,792.50
GBP 2.15 2.15
VND 358,356.14 358,356.14
SGD 1,893.94 1,893.94
IDR 74,978.65 74,978.65
Total 4,314,869.48 4,314,869.48
178
2023 Annual Report of Zhejiang Supor Co., Ltd.
(2) Interest risk - risk for cash flow changes
Interest risk is the risk that the Group may encounter fluctuation in fair value of financial instruments or future cash flows due to
changes in market interest rate. As of December 31, 2023, the Group's Bank's loan is at a fixed interest rate, the Group's gross profits
and shareholders' equities will not be significantly affected by interest risk.
2. 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.
The monetary capital of the Group other than cash is mainly deposited in creditworthy financial institutions, and the entrusted
financial products are issued by creditworthy financial institutions. The management considers that there is not any significant credit
risk and it is not expected to create losses to the Group as a result of default by the counterparty.
The exposure of the maximum credit risk assumed by the Group is the book value of each financial asset in the balance sheet
(including derivative financial instruments). Except for the financial guarantee provided by the Group in Note XIV, the Group has not
provided any other guarantee that may expose the Group to credit risk. The exposure of the maximum credit risk assumed by the above
financial guarantees on the balance sheet date has been disclosed in Note XVI.
The Company's credit risk is primarily attributable to receivables. In order to control such risks, the Company has taken the
following measures.
(1) Receivables financing and notes receivable
Receivables financing and notes receivable of the Group is mainly bank acceptance bill receivable. The Group conducts ongoing
monitoring on receivables, to avoid significant risks in bad debts.
(2) Accounts receivable
The Group only conducts business with credible and well-reputed third parties. According to the Group's policies, credit
evaluations are performed on all customers to determine the credit limit and terms applicable to the customers. In addition, the Group
conducts ongoing monitoring on accounts receivable, to avoid significant risks in bad debts.
(i) Continue to strengthen risk awareness, strengthen risk management of accounts receivable, and strengthen internal control of
customer credit policy management. Customer credit policy adjustments are required to pass the necessary approval procedures.
(ii) Keep detailed business records and accounting work. And use the records as important reference for future credit rating. Keep real
time updating on customers' information and learn their latest credit situation, in order to make suitable credit policies.
The Group's accounts receivable from related party SEB S.A. and its subsidiaries accounted for 60.95% of closing balance
( December 31, 2022: 50.14%), and the Group's account receivables are expected to have less credit risk. As the Company's credit risks
fall into several business partners and customers, as of December 31, 2023, 21.00% (December 31, 2022: 26.43%) of the total accounts
receivable was due from the five largest customers of the Company after deducting receivables from related party SEB S.A. The
Company has no significant central credit risk.
(3) Other receivables
Other receivables of the Group are mainly export rebate receivable and deposit as security receivable, etc. The Group performed
collective management and ongoing monitoring on such receivables and related business to avoid significant risks in bad debts.
3. Liquidity risk
Liquidity risk is the risk that the Group may encounter deficiency of funds in meeting obligations associated with cash or other
financial assets settlement. Liquidity risk is possibly attributable to failure in selling financial assets at fair value on a timely basis, or
failure in collecting liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Group optimizes the structure of assets and liabilities, and finally maintains a balance between
financing sustainability and flexibility.
Financial instruments classified based on remaining time period till maturity
Closing balance
Item
Book value Within 1 year 1-3 years Over 3 years Total
179
2023 Annual Report of Zhejiang Supor Co., Ltd.
Financial assets
Monetary capital 3,548,277,442.44 3,548,277,442.44 3,548,277,442.44
Transactional financial assets 351,137,787.54 351,137,787.54 351,137,787.54
Notes receivable 15,311,935.98 15,311,935.98 15,311,935.98
Accounts receivable 2,858,247,356.03 2,858,247,356.03 2,858,247,356.03
Receivables financing 363,532,765.35 363,532,765.35 363,532,765.35
Other receivables 16,126,721.38 16,126,721.38 16,126,721.38
Other debt investment 951,306,342.48 289,940,000.00 695,085,000.00 985,025,000.00
Subtotal 8,103,940,351.20 7,442,574,008.72 695,085,000.00 8,137,659,008.72
Financial liabilities
Short-term borrowings 199,741,167.36 200,000,000.00 200,000,000.00
Notes payable 1,235,000,000.00 1,235,000,000.00 1,235,000,000.00
Accounts payable 3,205,607,853.18 3,205,607,853.18 3,205,607,853.18
Other payables 147,617,550.27 147,617,550.27 147,617,550.27
Other current liabilities 10,761,655.33 10,761,655.33 10,761,655.33
Lease obligation 224,849,380.79 58,560,520.38 117,066,276.20 91,225,179.97 266,851,976.55
Subtotal 5,023,577,606.93 4,857,547,579.16 117,066,276.20 91,225,179.97 5,065,839,035.33
(Continued)
Beginning balance
Item
Book value Within 1 year 1-3 years Over 3 years Total
Financial assets
Monetary capital 3,563,140,907.75 3,563,140,907.75 3,563,140,907.75
Transactional financial assets 431,382,527.79 431,382,527.79 431,382,527.79
Notes receivable 27,325,952.95 27,325,952.95 27,325,952.95
Accounts receivable 1,926,518,118.38 1,926,518,118.38 1,926,518,118.38
Receivables financing 235,957,044.34 235,957,044.34 235,957,044.34
Other receivables 16,373,697.26 16,373,697.26 16,373,697.26
Other debt investment 1,056,952,424.68 33,150,000.00 1,101,237,500.00 1,134,387,500.00
Other current assets [note] 381,101,095.89 381,101,095.89 381,101,095.89
Subtotal 7,638,751,769.04 6,614,949,344.36 1,101,237,500.00 7,716,186,844.36
Financial liabilities
Notes payable 1,057,611,900.00 1,057,611,900.00 1,057,611,900.00
Accounts payable 2,635,521,548.19 2,635,521,548.19 2,635,521,548.19
Other payables 137,729,222.63 137,729,222.63 137,729,222.63
180
2023 Annual Report of Zhejiang Supor Co., Ltd.
Other current liabilities 22,383,800.87 22,383,800.87 22,383,800.87
Lease obligation 192,704,856.82 48,581,182.84 108,232,041.03 45,611,911.42 202,425,135.29
Subtotal 4,045,951,328.51 3,901,827,654.53 108,232,041.03 45,611,911.42 4,055,671,606.98
Note: Other current assets are term deposits for the purpose of obtaining interests.
(II) Transfer of financial assets
Transferred but not wholly derecognized financial assets
For details, please refer to "3. Notes receivable" in Note VII to the financial statements.
XIII. Fair Value Disclosure
1. Fair value as of the balance sheet date of the assets and liabilities measured at the fair value
Unit: RMB
Fair value as of the balance sheet date
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value measurement -- -- -- --
(I) Transactional financial assets 351,137,787.54 351,137,787.54
(II) Other debt investments 951,306,342.48 951,306,342.48
(III) Receivables financing
(1) Notes receivable 363,532,765.35 363,532,765.35
II. Non-continuous measurement of fair value -- -- -- --
2. Basis for determining the market value of continuous and non-continuous Level 1 fair value measurement
items
None
3. Qualitative and quantitative information of continuous and non-continuous Level 2 fair value
measurement items, valuation techniques adopted and important parameters
The fair value of financial assets measured at fair value through profit or loss, including wealth management products,other debt
investments and receivable financing is determined based on valuation techniques. Valuation techniques should make use of observable
market data as much as possible and rely less on specific estimates from entities.
4. Qualitative and quantitative information of continuous and non-continuous Level 3 fair value
measurement items, valuation techniques adopted and important parameters
None
181
2023 Annual Report of Zhejiang Supor Co., Ltd.
5. Fair value of the financial assets and financial liabilities not measured at fair value
As of December 31, there was not a significant difference between the book value and fair value of the Group's various financial assets
and financial liabilities.
XI. Related parts and related transactions
1. Parent company
Holding proportion Voting right
Place of Registered
Parent company name Business nature over the Company proportion over the
registration capital
(%) Company (%)
Investment EUR 830
SEB INTERNATIONALE S.A.S France 82.64% 82.64%
company million
Explanation on the parent company of the Group
Business scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operation
purpose), namely, purchase and subscription of stocks, bonds, company shares and interest, various securities and marketable securities,
and transfer of such securities or notes, all financial operations related to equity participation, purchase, manufacturing and selling of
home appliances for the purpose of distribution and rendering of relevant services, all activities directly or indirectly contributing to
the realization of these operations, particularly in the areas of movable properties, real estate, finance, commerce and industry operation.
The Group's final controlling party is SEB S.A.
2. Company's subsidiaries
See Note X "1. Equity in subsidiaries" for details on the Company's subsidiaries for details.
3. Joint ventures and associated enterprises of the Company
See Note X "2. Equity in joint ventures or associated enterprises" for details on the Company's significant joint ventures and associates
for details.
Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current period or
in Prior period but with balance in current period are as follows:
Name of the joint venture or associated enterprise Relationships with the Company
Wuhan Anzai Cookware Co., Ltd. Associated enterprise
4. Other related parties of the Company
Related party Relationship between other related parties and the Company
SEB S.A. Final controlling shareholder
SEB ASIA LTD. Same controlling shareholder
TEFAL S.A.S. Same controlling shareholder with the controlling shareholder
S.A.S. SEB Same controlling shareholder with the controlling shareholder
182
2023 Annual Report of Zhejiang Supor Co., Ltd.
SEB INTERNATIONAL SERVICE S.A.S. Same controlling shareholder with the controlling shareholder
LAGOSTINA S.P.A. Same controlling shareholder
GROUPE SEB MOULINEX Same controlling shareholder with the controlling shareholder
GROUPE SEB EXPORT Same controlling shareholder with the controlling shareholder
SEB DEVELOPPMENT SAS Same controlling shareholder with the controlling shareholder
IMUSA USA LLC Same controlling shareholder
Supor Group Co., Ltd. Company controlled by related natural person
ETHERA Same controlling shareholder with the controlling shareholder
WMF CONSUMER ELECTRIC GMBH Same controlling shareholder
WMF Consumer Goods (Shanghai) Co, Ltd. Same controlling shareholder
WMF GROUPE GMBH Same controlling shareholder
GROUPE SEB VIETNAM JOINT STOCK COMPANY Same controlling shareholder
GROUPE SEB SINGAPORE Same controlling shareholder
GROUPE SEB THAILAND Same controlling shareholder
Emsa Taicang Co., Ltd. Same controlling shareholder
Heshan Demei Tableware Co., Ltd. Same controlling shareholder
EMSA GMBH Same controlling shareholder
GROUPE SEB CANADA Same controlling shareholder
GROUPE SEB ANDEAN S.A. Same controlling shareholder
GROUPE SEB KOREA LTD. Same controlling shareholder
Saichuang (Zhejiang) Technology Co., Ltd. Same controlling shareholder
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. Company controlled by related natural person
5. Related transactions
(1) Related transactions in the purchase and sale of commodities, and provision and acceptance of labor
services
Purchase of commodities and receiving of services
Unit: RMB
Transaction Exceeding
Contents of related Amount incurred Amount incurred
Related party quota transaction
transaction during this period during prior period
granted limit or not
Wuhan Anzai Cookware Co., Ltd. Finished products 129,174,736.13 No 61,178,333.58
Wuhan Anzai Cookware Co., Ltd. Accessories 52,505,244.94 No 150,874,250.24
GROUPE SEB EXPORT Finished products 1,323,298.24 No 7,063,804.76
183
2023 Annual Report of Zhejiang Supor Co., Ltd.
GROUPE SEB EXPORT Accessories 73,810.00 No 73,815.50
TEFAL S.A.S. Accessories 20,213,451.95 No 7,660,045.82
LAGOSTINA S.P.A. Finished products 2,821,255.84 No 2,194,942.00
SEB INTERNATIONAL SERVICE S.A.S. Accessories 84,055.57 No 612,783.70
SEB INTERNATIONAL SERVICE S.A.S. Finished products 21,064.57 No 29,331.02
SEB ASIA LTD. Finished products 260,526.98 No 462,307.92
GROUPE SEB MOULINEX Accessories 2,871,660.72 No 3,255,315.40
Heshan Demei Tableware Co., Ltd. Finished products 184,681.57 No 312,749.25
GROUPE SEB SINGAPORE Finished products 17,600.69 No
GROUPE SEB THAILAND Finished products 413,719.66 No 445,146.13
Emsa Taicang Co., Ltd. Finished products No 234,955.75
ETHERA Accessories 141,420.43 No 317,859.36
WMF GROUPE GMBH Finished products 55,991,104.27 No 26,423,343.21
WMF Consumer Goods (Shanghai) Co,
Finished products 10,220.71 No 37,726.20
Ltd.
Supor Group Co., Ltd. Finished products No 16,092.68
GROUPE SEB KOREA LTD. Finished products 171,210.71 No
Sale of commodities and rendering of services
Unit: RMB
Contents of related Amount incurred during Amount incurred during
Related party
transaction this period prior period
SEB ASIA LTD. Finished products 5,718,651,248.45 4,535,035,472.36
SEB ASIA LTD. Accessories 22,355,391.81 3,163,380.97
S.A.S. SEB Finished products 15,722,826.89 13,690,166.60
S.A.S. SEB Accessories 471,895.40 673,421.95
TEFAL S.A.S. Finished products 2,674,842.16 7,069,905.25
TEFAL S.A.S. Accessories 18,245,450.86 13,666,486.47
GROUPE SEB MOULINEX Finished products 14,344,236.48 18,525,086.93
Supor Group Co., Ltd. Finished products 9,976,697.94 4,424,241.51
SEB INTERNATIONAL SERVICE S.A.S. Accessories 20,175,797.39 16,484,863.62
LAGOSTINA S.P.A. Finished products 49,269.52
LAGOSTINA S.P.A. Accessories 440,230.62 1,233,592.65
IMUSA USA LLC Finished products 7,559,422.13 16,285,333.26
IMUSA USA LLC Accessories 43,099.33 33,167.16
WMF Consumer Goods (Shanghai) Co, Ltd. Finished products 226,850.81 351,115.82
GROUPE SEB CANADA Finished products 11,070,592.32 14,164,254.85
184
2023 Annual Report of Zhejiang Supor Co., Ltd.
GROUPE SEB VIETNAM JOINT STOCK
Finished products 13,592,296.18 24,481,079.33
COMPANY
GROUPE SEB VIETNAM JOINT STOCK
Accessories 11,237.73
COMPANY
GROUPE SEB ANDEAN S.A. Accessories 1,520,747.00 3,513,457.99
Wuhan Anzai Cookware Co., Ltd. Accessories 42,226.55
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. Finished products 881,453.10
(2) Related party leases
The Company as the lessee:
Unit: RMB
Rent costs of short- Variable lease
term leases and low- payments not included Interest expense of
Increased right-of-use
value asset leases with in the measurement of Rentals lease obligation
asset
simplified treatment (if lease obligation (if undertaken
Types of applicable) applicable)
Leaser leased
assets Amount Amount Amount Amount
Amount Amount Amount Amount Amount Amount
incurred incurred incurred incurred
incurred incurred incurred incurred incurred incurred
during during during during
during this during this during this during this during this during prior
prior prior prior prior
period period period period period period
period period period period
Supor
Real 149,534.2 12,772,02 12,129,52 2,898,045 1,856,154 25,053,60 5,861,859
Group
estate 9 0.32 8.70 .38 .47 8.23 .68
Co., Ltd.
(3) Fund allocation of the related parts
Unit: RMB
Related party Borrowed/lent amount Start date Expiry date Notes
Borrowing
SEB S.A. 1,724,666.42 January 1, 2023 Open-ended Loan
(4) Key management's emoluments
Amount incurred Amount incurred during
Item
during this period prior period
Key management's remuneration RMB 15,275,700 RMB 15,193,300
Equity incentive and performance incentive fund for key management personnel RMB 7,182,900 RMB 4,425,300
(5) Other related transactions
① Water and electricity fee
Unit: RMB
185
2023 Annual Report of Zhejiang Supor Co., Ltd.
Selling parties Purchasing parties Amount incurred during this period Amount incurred during prior period
Supor Group Co., Ltd. Zhejiang Supor Electrical 106,169.13
②Property management, maintenance and berth fees
Unit: RMB
Amount incurred in current Amount incurred during
Service renderer Purchasing parties
year prior period
The Company 171,428.57
Supor Group Co., Ltd. Zhejiang Supor Electrical 308,571.43 308,571.43
Wuhan Supor Cookware 177,142.86 354,285.71
③Consulting fee
Unit: RMB
Amount incurred in current Amount incurred during
Service renderer Purchasing parties
year prior period
The Company 1,114,578.46 1,061,677.75
Wuhan Supor Cookware 813,341.40 774,741.96
SEB ASIA LTD.
Shaoxing Supor 572,353.11 545,185.33
Zhejiang Supor Electrical 512,104.35 487,799.51
④ R&D and human resources services
Unit: RMB
Amount incurred during Amount incurred during
Service renderer Purchasing parties
this period prior period
Saichuang (Zhejiang)
Zhejiang Supor Electrical 586,266.58 483,081.29
Technology Co., Ltd.
GROUPE SEB VIETNAM
AFS 2,881,836.67 3,023,118.45
JOINT STOCK COMPANY
Saichuang (Zhejiang) Technology Co.,
Shaoxing Supor 4,286,270.02 3,018,082.00
Ltd.
⑤Warehousing service
Unit: RMB
Amount incurred during Amount incurred during
Service renderer Purchasing parties
this period prior period
The Company 1,691,731.29
Wuhan Supor Cookware SEB ASIA LTD. 629,912.40
Shaoxing Supor 1,764,063.02
⑥Interest expense
Unit: RMB
Amount incurred during Amount incurred during
Selling parties Purchasing parties
this period prior period
SEB S.A. SEADA 596,062.26 142,176.51
⑦Software use license, etc.
Unit: RMB
Amount incurred Amount incurred during
Service renderer Purchasing parties
during this period prior period
SEB DEVELOPPMENT SAS The Company 1,145,521.04 1,629,059.37
186
2023 Annual Report of Zhejiang Supor Co., Ltd.
⑧ Pursuant to the Technical License Contract entered into between Wuhan Supor Cookware Co., Ltd and S.A.S. SEB on
December 29, 2013, S.A.S.SEB licensed Wuhan Supor Cookware Co., Ltd compensated use of its patent of Household Appliance for
Food Cooking under Pressure with Elastomer Safety Valve and other four utility patents. According to related terms and conditions in
the contract signed by both parties, use charges are accrued at 3% of revenue from sales of products licensed. In the current period,
Wuhan Supor Cookware Co., Ltd should pay S.A.S.SEB technology use charges of RMB 986,969.97 (2022: RMB 526,305.07), and
as of December 31, 2023, a balance of RMB 111,278.17 has not been paid (December 31, 2022: RMB 94,651.13).
⑨ Pursuant to the Trademark License entered into between Wuhan Supor Cookware Co., Ltd and LAGOSTINA S.P.A. on
December 15, 2014, LAGOSTINA S.P.A licensed Wuhan Supor Cookware Co., Ltd for compensated use of its trademark "LAGE".
According to related terms and conditions in the contract signed by both parties, use charges are accrued at 4% of revenue from sales
of products licensed. In the current period, Wuhan SUPOR should pay LAGOSTINA S.P.A. trademark use charges of RMB 1,071.69
(2022: RMB 43,093.45), and as of December 31, 2023, a balance of RMB 1,071.69 has not been paid (December 31, 2022: RMB
1,395,659.11).
⑩ Pursuant to the Trademark License entered into between Omegna and LAGOSTINA S.P.A. on December 5, 2016,
LAGOSTINA S.P.A licensed Omegna for compensated use of its trademark "LAGE". According to related terms and conditions in
the contract signed by both parties, use charges are accrued at 4% of revenue from sales of products licensed. In the current period,
Omegna should pay LAGOSTINA S.P.A. trademark use charges of RMB 6,525.10 (2022: RMB 66,105.73), and as of December 31,
2023, a balance of RMB 3,392,562.80 has not been paid (December 31, 2022: RMB 3,989,846.80).
Shaoxing Supor purchased and used particles product of air purifier and relevant technology in accordance with Agreement on
Purchase and Using for Particles of Air Purifier signed by Shaoxing Supor on April 25, 2016 with ETHERA. According to relevant
terms and conditions in the contract signed by both parties, Shaoxing Supor should pay technology transfer fee RMB 8,621.96 (2022:
RMB 22,268.70) to ETHERA in current period, which was calculated as per corresponding unit price of actual total sales. Until
December 31, 2023, all payments have been made (December 31, 2022: RMB 4,424.04).
6. Receivables and payables by related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Items Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
SEB ASIA LTD. 1,780,235,700.55 53,407,071.02 977,231,667.49 34,203,108.36
receivable:
S.A.S. SEB 1,406,560.86 42,196.83 838,044.35 29,331.55
TEFAL S.A.S. 5,793,936.65 173,818.10 3,220,589.96 112,720.65
SEB INTERNATIONAL SERVICE
5,586,161.59 167,584.85 3,296,335.17 115,371.73
S.A.S.
GROUPE SEB MOULINEX 5,481,313.07 166,201.95 1,423,208.22 51,536.52
IMUSA USA LLC 1,802,613.02 54,078.39 3,605,881.82 126,205.86
Supor Group Co., Ltd. 16,238.60 811.93 11,010.00 550.50
WMF Consumer Goods (Shanghai)
101,518.92 3,045.57 152,845.67 5,349.60
Co, Ltd.
GROUPE SEB CANADA 1,337,688.11 40,130.64 1,896,331.22 66,371.59
GROUPE SEB VIETNAM JOINT
5,001,845.80 150,055.37 14,774,836.65 517,119.28
STOCK COMPANY
187
2023 Annual Report of Zhejiang Supor Co., Ltd.
GROUPE SEB ANDEAN S.A. 304,479.89 9,134.40 112,622.53 3,941.79
Wuhan Anzai Cookware Co., Ltd. 16,500.00 825.00
LAGOSTINA S.P.A. 53,387.75 1,601.63 173,612.18 6,076.43
Saichuang (Zhejiang) Technology
347,080.36 10,412.41 261,025.21 9,135.88
Co., Ltd.
Total 1,807,468,525.17 54,226,143.09 1,007,014,510.47 35,247,644.74
Advance
Supor Group Co., Ltd. 171,428.57
payment:
EMSA GMBH 197.55
Total 197.55 171,428.57
Other
receivables Supor Group Co., Ltd. 165,000.00 98,500.00 145,000.00 56,250.00
:
Total 165,000.00 98,500.00 145,000.00 56,250.00
(2) Payables
Unit: RMB
Items Related party Ending book balance Beginning book balance
Accounts
Wuhan Anzai Cookware Co., Ltd. 19,000,235.48 17,508,276.00
payable:
WMF GROUPE GMBH 8,344,358.20 6,861,332.34
GROUPE SEB EXPORT 73,810.00 1,836,117.60
TEFAL S.A.S. 4,296,587.82 2,376,975.15
S.A.S. SEB 113,921.35 94,651.13
LAGOSTINA S.P.A. 5,725,894.53 5,386,105.91
GROUPE SEB MOULINEX 1,356,062.24 131,149.87
GROUPE SEB THAILAND 71,925.59 43,382.55
SEB INTERNATIONAL SERVICE S.A.S. 17,570.25 114,692.08
ETHERA 54,519.37 4,424.04
Saichuang (Zhejiang) Technology Co., Ltd. 718,456.36 578,673.08
Supor Group Co., Ltd. 6,536.00
Heshan Demei Tableware Co., Ltd. 53,230.00
WMF Consumer Goods (Shanghai) Co, Ltd. 129.00 42,630.61
SEB ASIA LTD. 152,068.55
SEB DEVELOPPMENT SAS 1,030,968.94
Total 40,963,043.68 35,031,640.36
Contract
Supor Group Co., Ltd. 381,292.07 6,208,467.16
liabilities:
Total 381,292.07 6,208,467.16
188
2023 Annual Report of Zhejiang Supor Co., Ltd.
Other payables: Wuhan Anzai Cookware Co., Ltd. 50,000.00 50,000.00
SEB S.A. 15,611,300.30 13,886,668.74
Total 15,661,300.30 13,936,668.74
Lease obligation: Supor Group Co., Ltd. 52,956,539.46 36,660,807.71
Total 52,956,539.46 36,660,807.71
XV. Share-based payment
1. Overall information
Applicable □ Not applicable
Unit: RMB
Exercise in the current Invalidation in the current
Grant in the current period Release in the current period
Category of period period
grant objects Share
Share number Amount Amount Share number Amount Share number Amount
number
Administrativ
751,526 10,988,338.89 75,750 4,211,242.85
e personnel
Sales
206,510 2,362,474.40
personnel
R&D
195,964 2,241,828.16
personnel
Total 1,154,000 15,592,641.45 75,750 4,211,242.85
Outstanding stock options or other equity instruments at the end of the period
Applicable □ Not applicable
Restricted stock incentive plans for 2021 and 2022:
Outstanding Restricted stock options at the Outstanding other equity instruments at
end of the period the end of the period
Category of grant objects
Scope of the exercise Remaining Scope of the Remaining
price contract term exercise price contract term
Administrative personnel /Sales
1 yuan/share 2.08-2.83 years
personnel/ R&D personnel
2023 Stock Option Incentive Plan:
Outstanding stock options at the end of the Outstanding other equity instruments at
period the end of the period
Category of grant objects
Scope of the exercise Remaining Scope of the Remaining
price contract term exercise price contract term
Administrative personnel /Sales
36.49 yuan/share 3.83 years
personnel/ R&D personnel
2. Equity-settled share-based payment
Applicable □ Not applicable
Unit: RMB
189
2023 Annual Report of Zhejiang Supor Co., Ltd.
Restricted stock incentive plans for 2021 and 2022 Relevant content
Determination method for fair value of equity instruments on
According to the market price on the grant date
grant date
Based on the corresponding equity instruments of incentive
Determination method for the optimal estimate of the number of
targets, the performance of the Company and the forecast of future
equity instruments expected to vest
performance of the Company
The significant difference between this period estimate and last
None
period
Capital reserve accumulated due to equity-settled share-based
97,320,132.85
payment
Total expenses incurred due to equity-settled share-based
42,472,896.87
payment transactions
2023 Stock Option Incentive Plan Relevant content
Determination method for fair value of equity instruments on
Fair value calculated according to the Black-Scholes model
grant date
Important parameters of fair value of equity instruments on
Expected dividend, historical volatility, risk-free interest rate
grant date
Based on the corresponding equity instruments of incentive
Determination method for the optimal estimate of the number
targets, the performance of the Company and the forecast of
of equity instruments expected to vest
future performance of the Company
The significant difference between this period estimate and
None
last period
Capital reserve accumulated due to equity-settled share-based
3,313,411.05
payment
Total expenses incurred due to equity-settled share-based
3,313,411.05
payment transactions
Other remarks:
According to the 2022 Stock Incentive Plan adopted on the Company's First Interim General Meeting of Shareholders in 2022 on
September 21, 2022, the Company repurchased 1,332,500 shares of its own stocks for the plan through centralized competitive bidding
with self-owned capital, adding RMB 69,398,019.65of treasury shares. On October 12, 2022, the Company granted 1,253,500 shares
to the incentive object at a grant price of RMB 1.00 per share, with a decrease of treasury share value of RMB 65,668,429.65, and
reverse undistributed profit at the beginning of the year of RMB 64,414,929.65. At the same time, the company confirmed its stock
repurchase obligation and increased its treasury stock by RMB 1,253,500.00.
On February 1, 2023, the company granted 79,000 shares to the remaining incentive recipients at a grant price of RMB 1.00 per share,
with a decrease of treasury share value of RMB 3,650,590.00 and offsets the beginning undistributed profits by RMB 3,650,590.00. At
the same time, the company confirms its stock repurchase obligation and increases its treasury stock by RMB 79,000.00.The impact of
2021 Equity Incentive Plan on the capital reserve is RMB 40,084,396.00 at the beginning of the period, and with an accrual of RMB
18,877,106.97 in the year, amounting to an accrued amount of RMB 58,961,502.97.
The impact of 2022 Equity Incentive Plan on the capital reserve is RMB 14,762,839.98 at the beginning of the period, and with an
accrual of RMB 23,595,789.90 in the year, amounting to an accrued amount of RMB 38,358,629.88.
The impact of 2023 Equity Incentive Plan on the capital reserve is RMB 0 at the beginning of the period, and with an accrual of RMB
3,313,411.05 in the year, amounting to an accrued amount of RMB 3,313,411.05.
3. Share-based payment expenses for this year
Applicable □ Not applicable
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Unit: RMB
Category of grant objects Equity settled share based payment expenses
Administrative personnel 29,398,068.74
Sales personnel 8,970,896.48
R&D personnel 7,417,342.70
Total 45,786,307.92
XII. Commitments and contingencies
1. Contingencies
(1) Significant contingencies at the balance sheet date
In 2016, a private patent holder filed a lawsuit against the subsidiary Shaoxing Supor for patent infringement. In 2020, the related
patent rights held by the plaintiff had been declared invalid by the Patent Reexamination Board of the China National Intellectual
Property Administration. In 2023,the litigation case has been issued an administrative ruling by the Beijing Intellectual Property Court,
which will be processed as the plaintiff withdrawing the lawsuit. Therefore, the original provision of RMB 5.15 million in estimated
liabilities has been reversed . In 2020, export customers filed legal proceedings against Shaoxing Supor, a subsidiary, on the grounds
of user disputes. This case has not been settled yet. Based on the principle of conservatism, the Company still retains an estimated
liability of RMB 4 million (December 31, 2022: RMB 4 million) on December 31, 2023. In 2021, export customers filed claims for
product quality issues against the subsidiary Shaoxing Supor on the grounds of user disputes. One of the claims was settled in the
period, and the Company bore the cost of RMB 461,300. Due to the uncertainty of another claim and considering the principle of
conservatism, Supor reserved an estimated liability of RMB 1,538,700 as at Dec 31, 2023 (December 31, 2022: RMB 2 million).
Contingent liabilities formed by financial guarantee and their financial impact
The Group signs tripartite acceptance agreements with distributors and banks, and the Group provides financing guarantee for the
banks to issue bank acceptance bills to the distributors. In the event that the Group endorses and assigns an acceptance bill obtained by
the Group, and if the distributor fails to repay the difference between the security and the amount of the acceptance bill after the
maturity of the acceptance bill, the Group will bear part of the loss of the difference that the bank has not recovered from the distributor.
As of December 31, 2023, the risk exposure undertaken by Supor is RMB 343.9136 million (December 31, 2022: RMB 298.0883
million), and the Company has provisioned a total estimated liability of RMB 1.7197 million (December 31, 2022: RMB 1.4904 million)
under financial guarantee contracts for this risk exposure.
(2) A statement shall be given even if the Company has no significant contingencies to disclose.
The Company has no significant contingencies to disclose.
XVII. Events after the balance sheet date
1. Profit distribution
According to the profit distribution plan for 2023 adopted at the 7th Session of the Eighth Board of Directors of the Company on
March 29, 2024, Company distributes cash dividend of 796,891,157 shares at the end of 2023 (total share capital of 806,708,657 shares
at the end of 2023 deducted by 9,817,500 shares of special securities account for repurchase), a cash dividend of RMB 27.30 (tax-
191
2023 Annual Report of Zhejiang Supor Co., Ltd.
inclusive) per 10 shares is distributed to all shareholders, and the total cash dividend was RMB 2,175,512,858.61. No bonus share will
be distributed or conversion from capital reserves to share capital is made this year The undistributed profits of parent company at the
end of the reporting period were RMB 3,782,559,441.04, including the dividends to be distributed RMB 2,175,512,858.61.
During the period from the disclosure of this profit distribution plan to the actual implementation date, if the Company's share
capital changes due to conversion of convertible bonds into stocks, share repurchases, equity incentive exercise, and refinancing and
new share listing, it will be executed based on the changed share capital, and the above distribution ratio remains unchanged.
This profit distribution plan shall be submitted to the Annual General Meeting of Shareholders for 2023 Fiscal Year for approval
after adopted by the Board of Directors.
XVIII. Other important matters
1. Segment information
(1) Determination basis and accounting policy of report segment
The Group establishes operating segment according to internal organizational structure, management requirement and internal
report system; determines report segment and disclose segment information based on Operating Segment.
Operating Segment refers to the Group's organization meeting following conditions: (1) The organization can yield revenue and
cost in daily activity; (2) The Group's management can appraise operating result of the organization regularly to allocate resources on
a targeted basis and evaluate its performance; (3) The Group can obtain financial condition, operating result, cash flow and other
relevant accounting information of the organization. Two or more operating segments, which have similar economic characteristics
and meet a certain condition, can be combined into an operating segment.
The preparation of segment reports is conducted with the revenue of trans-branch transaction measured at the actual transaction
price. The accounting policy for segment report preparation is consistent with that used in Supor's financial statement.
The Group, with main product focused on cookware and SDA (small domestic appliances) in kitchen, establishes report segment
based on product and geographic segments and assets and liabilities shared by product segments is unable to be clearly distinguished.
(2) Financial information of reportable segments
Unit: RMB
Inter-segment
Item Cookware Electrical products Others Total
offsetting
Revenue from main
6,159,739,779.99 14,995,308,681.62 166,805,821.68 274,392,569.16 21,047,461,714.13
business
Cost of main
4,438,233,089.06 11,173,663,650.69 144,875,976.65 273,853,897.16 15,482,918,819.24
business
(3) Other explanations
② Geographic segment
Information on the Group's revenue from external transactions and non-current assets (excluding financial assets and deferred
income tax assets, the same below) by region is shown in the following table. Revenue from external transactions is divided according
to the location of customers who receive services or purchase products. Non-current assets are classified as per the physical location
of the assets (for fixed assets and construction in progress) or the location where they are allocated to related business (for intangible
assets) or the location of joint ventures and associated enterprises.
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Item Domestic Foreign Inter-segment offsetting Total
Revenue from main
14,937,286,741.50 6,131,661,653.35 21,486,680.72 21,047,461,714.13
business
Cost of main business 10,465,424,512.47 5,038,996,154.59 21,501,847.82 15,482,918,819.24
Non-current assets 2,033,564,424.41 67,703,834.14 117,033,788.09 1,984,234,470.46
③ Major customers
Among the Group's customers, one customer (2022: 1) whose revenue from a single customer accounted for 10% or more of the
Group's total revenue was related party SEB S.A. and its subsidiaries, accounting for approximately 27.45% (2022: 23.18%) of the
Group's total revenue.
XIX. Notes to items of parent company financial statements
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (including 1 year) 639,632,187.73 385,526,579.20
1-2 years 9,778.58
Total 639,632,187.73 385,536,357.78
(2) Classified disclosure by the bad debt provision method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories Provisio
Book value Book value
Provision n
Amount Proportion Amount Amount Proportion Amount
proportion proportio
n
Accounts
receivable for
provision for 624,130,389. 385,536,357. 10,937,615.0 374,598,742.
639,632,187.73 100.00% 15,501,798.17 2.42% 100.00% 2.84%
bad debts made 56 78 3 75
on the basis of
portfolio
Including:
Portfolio 1: age 500,534,428. 312,435,311. 10,880,503.8 301,554,808.
515,929,581.71 80.66% 15,395,153.38 2.98% 81.04% 3.48%
portfolio 33 86 6 00
Portfolio 2: low- 106,538,140. 57,111,169.9 57,054,058.7
106,644,785.32 16.67% 106,644.79 0.10% 14.81% 57,111.17 0.10%
risk portfolio 53 2 5
Portfolio 3:
17,057,820.7 15,989,876.0 15,989,876.0
merged related 17,057,820.70 2.67% 0.00% 4.15%
0 0 0
parties portfolio
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2023 Annual Report of Zhejiang Supor Co., Ltd.
624,130,389. 385,536,357. 10,937,615.0 374,598,742.
Total 639,632,187.73 100.00% 15,501,798.17 2.42% 100.00% 2.84%
56 78 3 75
Categories for bad debts provision: Portfolio 1
Provision for bad debts made on a portfolio basis: RMB 15,395,153.38
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year 515,929,581.71 15,395,153.38 2.98%
Total 515,929,581.71 15,395,153.38
If yes, a provision for bad debts for accounts receivable shall be accrued according to the general model of expected credit loss:
□ Applicable Not applicable
(3) Provision for bad debts made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Categories Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Provision for bad debts
10,937,615.03 4,564,183.14 15,501,798.17
for accounts receivable
Total 10,937,615.03 4,564,183.14 15,501,798.17
(4) Accounts receivable and contract asset details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of
impairment
Proportion in the
provision for bad
Closing balance of Accounts receivable sum of accounts
Closing balance debts for accounts
Entity name accounts and closing balance receivable and
of contract asset receivable and
receivable of contract asset closing balance of
impairment
contract asset
provision for
contract assets
SEB S.A. and its
514,734,045.73 514,734,045.73 80.47% 15,442,021.37
subsidiaries
Customer E 98,045,649.44 98,045,649.44 15.33% 98,045.65
Supor Vietnam 9,915,898.56 9,915,898.56 1.55%
Wuhan Supor Cookware 3,260,961.20 3,260,961.20 0.51%
Shanghai WMF 3,079,967.24 3,079,967.24 0.48%
Total 629,036,522.17 629,036,522.17 98.34% 15,540,067.02
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2023 Annual Report of Zhejiang Supor Co., Ltd.
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 674,127,502.50 1,174,381,191.82
Total 674,127,502.50 1,174,381,191.82
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 305,528.00 111,458.00
Fund pool 671,436,662.09 1,172,087,133.42
Temporary payment receivable 3,968,595.43 2,860,673.12
Personal deposit 551,458.41 339,400.93
Total 676,262,243.93 1,175,398,665.47
2) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (including 1 year) 675,240,966.75 1,174,443,084.02
1-2 years 85,528.00 45,000.00
2-3 years 34,500.00 9,332.27
Over 3 years 901,249.18 901,249.18
4-5 years 5,000.00
Over 5 years 901,249.18 896,249.18
Total 676,262,243.93 1,175,398,665.47
3) Classified disclosure by the bad debt provision method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories
Book value Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other receivables
1,187,578.89 0.18% 1,187,578.89 100.00% 0.00
for provision for
195
2023 Annual Report of Zhejiang Supor Co., Ltd.
bad debts made on
an individual basis
Other receivables
for provision for
675,074,665.0 1,174,381,191.
bad debts made on 99.82% 947,162.54 0.14% 674,127,502.50 1,175,398,665.47 100.00% 1,017,473.65 0.09%
4 82
the basis of
portfolio
Including:
Portfolio 1: age
1,699,199.49 0.25% 947,162.54 55.74% 752,036.95 3,311,532.05 0.28% 1,017,473.65 30.73% 2,294,058.40
portfolio
Portfolio 2: low- 673,375,465.5 1,172,087,133.
99.57% 0.00% 673,375,465.55 1,172,087,133.42 99.72% 0.00%
risk portfolio 5 42
676,262,243.9 1,174,381,191.
Total 100.00% 2,134,741.43 0.32% 674,127,502.50 1,175,398,665.47 100.00% 1,017,473.65 0.09%
3 82
Provision for bad debts made on an individual basis: RMB 1,187,578.89
Unit: RMB
Opening balance Closing balance
Name Book Provision for Provision for Provision
Book balance Reasons
balance bad debts bad debts proportion
It is not expected to be
Customer H 1,187,578.89 1,187,578.89 100.00% recovered, so the provision for
bad debts is fully accrued.
Total 1,187,578.89 1,187,578.89
Provision for bad debts made on a portfolio basis: RMB 947,162.54
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (including 1 year) 677,922.31 33,896.12 5.00%
1-2 years (including 2 years) 85,528.00 6,842.24 8.00%
2-3 years (including 3 years) 34,500.00 5,175.00 15.00%
Over 5 years 901,249.18 901,249.18 100.00%
Total 1,699,199.49 947,162.54
A provision for bad debts that are accrued according to the general model of the expected credit loss:
Unit: RMB
Phase I Phase II Phase III
Expected credit loss
Provision for bad debts Expected credit loss Total
Expected credit loss in the entire duration
in the entire duration
in future 12 months (without credit
(credit impairment)
impairment)
Balance on January 1, 2023 1,017,473.65 1,017,473.65
Balance on January 1, 2023 in the
current period
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Accrued 1,187,578.89 1,187,578.89
Write-off -70,311.11 -70,311.11
Balance on December 31, 2023 947,162.54 1,187,578.89 2,134,741.43
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not applicable
4) Provision for bad debts made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Categories Opening balance Collected or Write-off or Closing balance
Accrued Others
reversed charge-off
Provision for bad debts of
1,017,473.65 1,187,578.89 -70,311.11 2,134,741.43
other receivables
Total 1,017,473.65 1,187,578.89 -70,311.11 2,134,741.43
5) Other receivables of the top 5 closing balances by debtors
Unit: RMB
Proportion in the Closing balance of
Nature of
Entity name Closing balance Ages total closing balance provision for bad
receivables
of other receivables debts
Zhejiang Supor Electrical Fund pool 228,163,357.68 Within 1 year 33.74%
Hainan Supor E-commerce
Fund pool 150,493,122.57 Within 1 year 22.25%
Company
Wuhan Supor Cookware Fund pool 145,485,813.46 Within 1 year 21.51%
Omegna Fund pool 73,691,393.73 Within 1 year 10.90%
Shanghai WMF Fund pool 58,031,647.77 Within 1 year 8.58%
Total 655,865,335.21 96.98%
6) Presented in other receivables due to centralized fund management
Unit: RMB
Amount presented in other receivables due to centralized fund
671,436,662.09
management
3. Long-term equity investment
Unit: RMB
Item Closing balance Opening balance
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2023 Annual Report of Zhejiang Supor Co., Ltd.
Impairmen Impairment
Book balance Book value Book balance Book value
t provision provision
Investment in subsidiaries 2,787,004,539.36 2,787,004,539.36 2,763,861,746.90 2,763,861,746.90
Investments in associates and
61,626,527.25 61,626,527.25 62,156,208.65 62,156,208.65
joint ventures
Total 2,848,631,066.61 2,848,631,066.61 2,826,017,955.55 2,826,017,955.55
(1) Investments in subsidiaries
Unit: RMB
Opening Increase/decrease
Closing balance
Opening balance (book balance of Closing balance (book
Invested unit Accrued of impairment
value) impairment Investment Investment value)
impairment Others provision
provision increased decreased
provision
Wuhan Supor Pressure
240,428,244.41 240,428,244.41
Cooker
P&R Products 20,804,297.92 20,804,297.92
Yuhuan Sales Company 2,990,149.81 2,990,149.81
Zhejiang Supor Electrical 777,383,633.79 6,737,749.32 784,121,383.11
Shaoxing Supor 646,842,558.49 5,527,127.77 652,369,686.26
Supor Vietnam 105,143,165.64 105,143,165.64
Wuhan Recycling 1,000,000.00 1,000,000.00
Omegna 10,000,000.00 10,000,000.00
Shanghai Marketing 5,000,000.00 5,000,000.00
Wuhan Supor Cookware 603,055,043.39 4,097,883.79 607,152,927.18
SEADA 11,890,622.45 11,890,622.45
Shanghai WMF 50,206,659.00 8,636.74 50,198,022.26
Zhejiang WMF 102,179,399.00 2,235,868.98 104,415,267.98
Zhejiang Supor LKA 100,648,199.00 578,729.70 101,226,928.70
Shaoxing Supor Housewares 54,519,526.00 938,819.57 55,458,345.57
Supor Water Heater 31,200,000.00 31,200,000.00
Hainan Supor E-commerce
570,248.00 3,035,250.07 3,605,498.07
Company
Total 2,763,861,746.90 23,151,429.20 8,636.74 2,787,004,539.36
(2) Investments in associates and joint ventures
Unit: RMB
Opening Increase/decrease Closing Closing
Opening
balance of balance balance of
Invested unit balance
impairmen Investm Investmen Investment Adjustme Changes Cash Accrued Other (book impairmen
(book value)
t provision ent t profit or loss nt in other in other dividend/pro impairmen s value) t provision
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2023 Annual Report of Zhejiang Supor Co., Ltd.
increase decreased recognized comprehe equity fit declared t provision
d by equity nsive for
method income distribution
I. Joint venture
II. Associated enterprises
Wuhan Anzai
62,156,208.6 61,626,527
Cookware Co., -529,681.40
5 .25
Ltd.
62,156,208.6 61,626,527
Subtotal -529,681.40
5 .25
62,156,208.6 61,626,527
Total -529,681.40
5 .25
The recoverable amount is determined as the net amount of the fair value less disposal expenses
□ Applicable Not applicable
The recoverable amount is determined as the present value of estimated future cash flow of assets
□ Applicable Not applicable
4. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Main business 2,730,903,877.45 2,307,291,786.04 2,302,742,532.78 1,935,093,847.17
Revenue from other
69,901,457.32 63,676,240.21 61,817,745.45 54,008,950.20
operations
Total 2,800,805,334.77 2,370,968,026.25 2,364,560,278.23 1,989,102,797.37
Breakdown information of operating income and operating cost:
Unit: RMB
Total
Contract classification
Operating income Operating cost
Business type
Including:
Cookware 2,730,903,877.45 2,307,291,786.04
Others 69,901,457.32 63,676,240.21
Classified by business area
Including:
Domestic 933,645,081.75 731,272,837.83
Foreign 1,867,160,253.02 1,639,695,188.42
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
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2023 Annual Report of Zhejiang Supor Co., Ltd.
At the end of this reporting period, the revenue from the performance obligations that have not been fulfilled or completely fulfilled
under existing contract is RMB 1,702,589.31, of which RMB 1,702,589.31 is expected to be recognized as income in 2024.
5. Investment incomes
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Long-term equity investment income under the cost method 1,748,623,145.25 1,618,952,576.25
Long-term equity investment income under the equity method -529,681.40 -3,262,848.85
Loss from disposal of subsidiaries -62,518,037.73
Interest from term deposit 7,432,119.49 34,428,058.56
Investment income from disposal of transactional financial assets 3,419,948.31 1,534,045.79
Investment income from other debt investments during the
7,662,465.75 7,443,923.15
holding period
Total 1,766,607,997.40 1,596,577,717.17
XX. Supplementary Data
1. Breakdown of non-recurring profit or loss in the current period
Applicable □ Not applicable
Unit: RMB
Item Amount Notes
Profit or loss on disposal of non-current assets -6,956,266.86
Government subsidies recognized through current profits and losses (except those that are
closely related to the Company's normal business operations, comply with national
196,125,471.29
policies and regulations and available according to certain standard quota or continuously
affect the Company's profits and losses)
Except the effective hedging business related to the normal operation of the Company,
profits and losses from fair value changes caused by the finance assets and financial
43,047,593.88
liabilities held by non-financial enterprises, and profits and losses from disposal of
financial assets and financial liabilities
Other non-operating incomes or expenditures except for the foregoing items 6,289,885.37
Minus: influenced amount of income tax 52,980,777.54
Influenced amount of minority shareholders' equities (after tax) 193,454.72
Total 185,332,451.42 --
Other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses:
□ Applicable Not applicable
The Company does not have other specific circumstances of other items of profits and losses complying with the definition of non-
recurring profits or losses.
Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of the
Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
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2023 Annual Report of Zhejiang Supor Co., Ltd.
□ Applicable Not applicable
2. Return on net assets and earnings per share
Weighted average Earnings per share
Profit of the reporting period return on net Basic earnings per share Diluted earnings per share
assets (RMB/share) (RMB/share)
Net profit attributable to shareholders of common shares 34.62% 2.719 2.719
Net profit attributable to shareholders of common shares
31.67% 2.487 2.487
after deducting non-recurring profit or loss
3. Financial Data Difference on Principle of Domestic and Oversea Accounting
(1) Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable Not applicable
(2) Net profit and net assets discrepancies in financial statements disclosed separately under Overseas
Accounting Standards and Chinese Accounting Standards
□ Applicable Not applicable
(3) The reason of accounting data difference under domestic and foreign accounting standard shall be
explained. If the data audited by the foreign audit organization carries out the different adjustment, the name
of foreign organization shall be indicated.
None
Zhejiang Supor Co., Ltd.
Chairman: Thierry de LA TOUR D'ARTAISE
March 30, 2024
201
