2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Zhejiang Supor Co., Ltd.
2024 Semiannual Report
August 2024
1
2024 Semiannual 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 semiannual 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 report enclosed in this semiannual report is true, accurate and
complete.
All directors have attended the Board Meeting of semiannual report 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.
For details of the risk factors faced by the Company, please refer to Part X
"Risks Faced by the Company and Countermeasures" of Section III
"DISCUSSION AND ANALYSIS OF THE MANAGEMENT".
The Company plans not to distribute cash dividend, issue bonus shares, or
transfer reserve to common shares.
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2024 Semiannual 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 ........................................................................................ 9
SECTION IV CORPORATION GOVERNANCE ...............................................................................................................................21
SECTION V SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES ...........................................................................................24
SECTION VI SIGNIFICANT EVENTS ..............................................................................................................................................28
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS ............................................36
SECTION VIII INFORMATION ON PREFERRED SHARE .............................................................................................................43
SECTION IX BONDS ..........................................................................................................................................................................44
SECTION X FINANCIAL REPORT ...................................................................................................................................................45
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
CATALOG OF REFERENCE DOCUMENTS
I. 2024 Semiannual Report of the Company and Abstract with signature of legal representative;
II. Accounting statements with signature of legal representative, person in charge of accounting and person in charge of accounting
department and seal of the Company;
III. Originals of all documents and announcements published in newspapers designated by CSRC during the reporting period.
Reference documents above shall be prepared by Securities Department of the Company.
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2024 Semiannual 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
CSDCC means
Corporation Limited
The Company/this Company/Supor means Zhejiang Supor Co., Ltd.
SEB Internationale means SEB INTERNATIONALE S.A.S
Groupe SEB 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 Marketing 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 Housewares Co., Ltd.
Supor Large Kitchen Appliance 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 Trade Company means Hainan Tefal Trade 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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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION II COMPANY FILE AND MAJOR FINANCIAL
INDICATORS
I. Company Profile
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 浙江苏泊尔股份有限公司
Short Form of Chinese Name of the
苏泊尔
Company (if any)
English Name of the Company (if
ZHEJIANG SUPOR CO., LTD.
any)
Short Form of English Name of the
SUPOR
Company (if any)
Legal Representative Thierry de LA TOUR D'ARTAISE
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
III. Other Conditions
1. Way of contact
Whether the Company registered address, office address, post code, Company website, email address, etc. have changed within the
reporting period
□ Applicable Not-applicable
The Company registered address, office address, post code, Company website and email address have not changed during the
reporting period. Please refer to the 2023 Annual Report.
2. Place for information disclosure and archiving
Whether information disclosure and designated location have changed within the reporting period
□ Applicable Not-applicable
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
The securities exchange website and media name along with their respective URLs where the Company disclosed its semiannual
report, as well as the location of the Company's semiannual report archives, remain unchanged during the reporting period. For
specific details, please refer to the 2023 Annual Report.
3. Other relevant information
Change situation of other relevant data within the reporting period
□ Applicable Not-applicable
IV. Major Accounting Data and Financial Indicators
Does the Company need to retroactively adjust or restate previous year's accounting data?
□ Yes No
Increase/decrease of this
This reporting period Same period of last year reporting period from the
same period of the last year
Operating income (RMB) 10,964,777,968.45 9,982,616,440.73 9.84%
Net profit attributable to shareholders of
940,593,117.65 880,618,279.78 6.81%
listed company (RMB)
Net profit attributable to shareholders of
listed company with non-recurring profit 922,655,960.65 857,420,949.15 7.61%
or loss deducted (RMB)
Net cash flows from operating activities
548,524,464.81 555,040,511.12 -1.17%
(RMB)
Basic earnings per share (RMB/share) 1.181 1.097 7.66%
Diluted earnings per share (RMB/share) 1.181 1.095 7.85%
Increase by 2.16 percentage
Weighted average return on net assets 15.45% 13.29%
points
Increase/decrease of the end
End of this reporting
End of last year of this reporting period from
period
the end of last year
Total assets (RMB) 11,102,810,216.79 13,106,703,607.00 -15.29%
Net asset attributable to shareholders of
5,106,521,012.48 6,345,333,020.11 -19.52%
listed company (RMB)
V. Financial Data Difference on Principle of Domestic and Oversea Accounting
1. Net profit and net assets discrepancies in financial reports disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable Not-applicable
No net profit and net assets discrepancies in financial reports disclosed separately under International Accounting Standards and
Chinese Accounting Standards existed during the reporting period.
2. Net profit and net assets discrepancies in financial reports disclosed separately under Overseas
Accounting Standards and Chinese Accounting Standards
□ Applicable Not-applicable
No net profit and net assets discrepancies in financial reports disclosed separately under Overseas Accounting Standards and
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Chinese Accounting Standards existed during the reporting period.
VI. Non-recurring Profit or Loss Items and Amount
Applicable □ Not-applicable
Unit: RMB
Item Amount Notes
Profit and loss on disposal of non-current assets (including the write-off of provision
-1,405,000.23
for asset impairment)
Government subsidies included into the current profits and losses (except those that are
closely related to the Company's normal business operations, comply with national
5,841,677.89
policies and regulations, available according to determined standards, and have a
continuous impact on the profit and loss of the Company)
Except the effective hedging business related to the normal operation of the Company,
profits and losses from fair value changes of held-for-trading financial assets and
17,206,786.02
financial liabilities by non-financial enterprises and profits and losses obtained from
disposal of financial assets and financial liabilities
Other non-operating incomes or expenditures except for the foregoing items 1,366,434.45
Minus: influenced amount of income tax 5,052,136.70
Influenced amount of minority shareholders' equities (after tax) 20,604.43
Total 17,937,157.00
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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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION III DISCUSSION AND ANALYSIS OF THE
MANAGEMENT
I. Major Businesses of the Company during the Reporting Period
(I) Main businesses of the Company
As China's famous cookware and small domestic appliance R&D 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 (Binhai New Area
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.;
(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 Groupe SEB.
(II) Industry development and market position of the Company
In the first half of 2024, Consumer demand showed signs of stratification. On the one hand, consumer demands for high-quality,
high-value products maintained an upward trend; on the other hand, more consumers were willing to purchase most cost-effective
products. Facing a complex market environment and more rational consumer demand, the Company has achieved a better-than-
industry performance of domestic sales through continuous innovation and strong channel competitive advantages. The domestic
sales has increased slightly compared to the same period last year, and the online and offline market share of its core product
categories has continued to rise.
In the field of open fire cookware, live streaming e-commerce and interest-based e-commerce platforms like TikTok and
Pinduoduo continued to experience rapid growth, while traditional e-commerce platforms saw a slight decline. Overall, online
retail scale grew slightly, while offline channels were still under pressure. According to monitoring data from AVC, Supor's online
market share for cookware continued to grow in the first half of 2024, leading the second brand by more than four times. Its
overall cumulative offline market share was close to 50%, firmly maintaining the industry's top one position. In terms of product
category performance, traditional necessity products such as pressure cookers, casseroles, milk pots, and frying pans performed
steadily, with cookware made of materials like 316L stainless steel, titanium, and iron being more favored by consumers.
In the field of small domestic appliance, the domestic consumer market faced intensified competition. Supor forged ahead
under pressure, achieving a remarkable performance with the top market share in traditional e-commerce and TikTok's
comprehensive market. According to AVC's cross-channel monitoring data for the first half of 2024, Supor's sales performance in
the small domestic appliance market (including categories: electric rice cookers, induction hobs, electric pressure cookers, soymilk
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
maker, high-speed blenders, mixers, juicers, electric kettles, electric steamers and slow cookers, health kettles, electric grills,
tabletop single-function ovens, and air fryers) exceeded the industry level, with increased online and offline market shares, ranking
first in the industry. In terms of product category performance, necessity categories like electric rice cookers remained stable,
while categories related to health concepts, such as electric steamers, slow cookers, health kettles, and soymilk makers, continued
to grow.
(III) Operating condition during the reporting period
1. 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 considerate, comprehensive
consumer experiences.
In the open fire cookware business, the Company's main promotion this year was the titanium no coating &nonstick iron wok,
introducing the concept of "non-stick, non-rusting, and no maintenance required," ushering in a new era of "nonstick iron wok".
The Company continued to implement a large single-product strategy in the drinkware business, further increasing the market
share and sales scale of the water bottle category. For example, the anytime sharing series thermos bottle ranked among the top
sellers in the first half year and was repeatedly included in the sales rankings of traditional e-commerce platforms like Tmall and
JD.com.
In the small domestic appliance business, the Company further solidified its leading position in core necessity categories such
as electric rice cookers, electric pressure cookers, and electric kettles. The core product, the far-infrared rice cooker, has sold over
one million units since its launch. Simultaneously, the Company accelerated its layout in small-capacity, multi-functional, and
silver-hair product lines, launching products like small-capacity far-infrared rice cookers and upgraded portable coffee makers.
Additionally, the Company actively entered new sub-categories such as desktop water purifiers and ice makers, while accelerating
the layout of AIOT intelligent products and further promoting the implementation of the "content + service" platform strategy. The
Company's industry-first intelligent food solution for smart culinary scenarios, launched this year, won the AWE 2024 Appliance
& Electronics World Expo (AWE) "Intelligent Technology Award."
In the H&PC appliance business, Supor continued to focus on the cleaning appliances category, with its market share for
vacuum cleaners rising to the first among domestic brands and second in the industry. The Company maintained its industry-
leading position in the garment steamer category. According to AVC monitoring data, Supor's online market share for garment
steamers ranked second in the industry. Simultaneously, the Company continued developing high-speed hair dryers, electric
shavers, and other personal care products, as well as seasonal products like air-circulating fans, actively creating new sales growth
curves.
In the large kitchen appliances business, Supor remained focused on its main product categories, rapidly developing and
nurturing emerging categories, anchoring the existing replacement market, and continuously seeking breakthroughs. The
Company's shatter-proof gas stove with "extreme fire" continued to lead the industry, maintaining the top position in online single-
product sales rankings. According to AVC monitoring data, Supor's online market share for gas stoves remained first in the
industry in the first half of 2024.
(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 the first half of 2024, traditional e-commerce channels experienced a decline, while interest-based e-commerce growth
slowed down, leading to an overall slowdown in online retail growth and intensified competition. As a leading brand in the
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
industry, Supor's online sales still maintained growth momentum in the first half year. For traditional e-commerce platforms, the
Company continuously optimized its product and store matrices, consistently expanding the sales proportion of mid-to-high-end
products, increasing the market share of above products further. In interest-based e-commerce platforms, the Company combined
in-house live streaming with influencer live streaming on platforms like TikTok to continuously improve the efficiency of
expenses and gradually increase sales contributions from TikTok's store, ensuring profitability in interest-based e-commerce
platforms. Simultaneously, the Company continued to optimize its store matrix on the Pinduoduo platform, improving product
categories and introducing designated best cost-effective products to drive sales growth.
In the first half of 2024, the offline channel still faced significant challenges. As an industry leader, Supor further
consolidated its advantages in the offline retail channel, continuously expanding lower-tier channels, accelerating store penetration,
and effectively improving sales velocity. In the O2O channels like JD stores in third- and fourth-tier markets, the Company
promoted the implementation of refined distributor operations management, further enhancing store operational capabilities and
store productivity, leading to a reasonable optimization of the sales structure. In the instant retail channels of first- and second-tier
markets, the Company further upgraded its cooperation with platforms like Meituan Flash Sale and JD.com Home, and Ele.me,
injecting new vitality into the offline store ecosystem, further bringing products closer to consumers, and integrating consumption
scenarios with household scenarios, thereby achieving rapid sales growth. In the B2B business, the Company launched points
redemption programs with various large and medium-sized enterprises such as banks and airlines, providing incremental growth
for offline channels. Simultaneously, Supor continuously strengthened cooperation with regional real estate developers and
renovation companies, exploring the pre-furnished market.
(3) Brand building
In the first half of 2024, the Company strengthened user-centric brand building, solidified its user base, enhanced user
experience and loyalty, and empowered the long-term healthy development of the brand. The Company established a
comprehensive user asset system, strengthened the integration of public and private domains, fully utilized multi-channel user
touchpoints, and improved user loyalty and activity. The Company continuously provided users with a unique product and service
offering through its official WeChat mini-program, integrating lifestyle inspiration, product usage tips, immersive shopping, after-
sales service, and member activities. Through refined segmentation and personalized services, the Company improved user
lifecycle management and continuously enhanced brand experience. Furthermore, the Company fully tapped into the value of the
VOC (Voice of Customer) system and established a comprehensive user NPS (Net Promoter Score) system to gain in-depth
insights into user evaluations and suggestions, continuously improving products and services. Coinciding with the Company's 30th
anniversary this year, we conducted a series of user interaction activities, such as the "My First Supor Product" story collection,
further enhancing users' brand recognition and sense of belonging.
2. Export sales during the reporting period
In the first half of 2024, as the demands in European and American markets rebounded from inventory de-stocking phase,
orders from the Company's major export customers increased significantly compared to the same period last year, leading to rapid
growth in export operating income.
II. Core Competitiveness Analysis
(I) Superior product innovation capacity
Supor has consistently embraced the philosophy of "people-oriented, design-driven innovation" for many years. The
Company emphasizes technological leadership, green design, and collaborative innovation both internally and externally. As a
result, Supor has introduced a broader range of healthy, intelligent, and serial products tailored to meet the diverse needs and
consumption scenarios of varying consumer demographics. Under the leadership of the headquarters’ Innovation Center, Supor
has enhanced the collaboration of its R&D resources, both internal and external. Internally, the Innovation Center continually
refines its innovation incentive mechanisms, promoting ongoing innovation across business units. Externally, the Company forges
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
frequent collaborations with research institutions and universities to bring in new technologies and materials while strengthening
innovative synergies with Groupe SEB to introduce an expanded array of products and technologies, thus enriching Supor’s
product portfolio.
In the realm of product design, Supor integrates industrial design, user experience, and consumer trend analysis to drive
product innovation, which subsequently enhances the visual appeal, form, and user experience of its offerings by addressing
consumer pain points and delivering superior product experiences.
(II) Steady distributor network
Supor has a stable distribution team, maintaining long-term, favorable partnerships with distributors and operational entities.
In the online channels, Supor is advancing a direct sales, distribution, and “one-basket” stocking model, collaborating with
distributors and operators to establish a comprehensive e-commerce store matrix that ensures consumers have favorable online
shopping experiences. Meanwhile, in the offline channels, Supor has developed a vast network of sales terminals and service
points, entering major mainstream supermarkets in first- and second-tier markets, while achieving considerable penetration of
O2O channels in third- and fourth-tier markets to facilitate consumer access to our products.
(III) Strong R&D and manufacturing capabilities
Supor has built up six R&D production bases, respectively in Yuhuan City, Hangzhou City, Shaoxing City (Binhai New
Area and Keqiao District), 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. For years, the Company has focused on
enhancing industrial efficiency, and its robust R&D and manufacturing capabilities play a pivotal role in ensuring the
competitiveness of Supor’s products.
(IV) Synergistic effect of integration with SEB
Groupe SEB, a leader in cookware and small domestic appliances with a history surpassing 160 years, has been strategically
partnered with Supor since 2006. The synergy of this partnership yields stable annual export orders for Supor, continually
enhancing its overall sales volume and manufacturing capabilities. Moreover, Supor has reinforced its collaboration with the
Groupe SEB across various areas such as production, R&D, information technology, and management, providing comprehensive
support for sustainable development.
(V) Advantages of multi-brand and multi-category operations
For multi-brand operation, in addition to Supor brand, the Company also introduced a lot of high-end brands under Groupe
SEB, such as WMF, LAGOSTINA, KRUPS, and TEFAL so as to fully cover the high-end brands in small domestic appliances and
kitchen cookware fields. In pursuing multi-category operations, Supor is actively expanding its portfolio beyond traditional
categories like open fire cookware and small domestic appliances, venturing into new segments such as large kitchen appliances,
home care appliances, and personal care electronics. The establishment of a multi-brand and multi-category presence in the
domestic market has granted Supor a significant competitive edge, positioning it to evolve into a comprehensive household brand
enterprise.
III. Main Business Analysis
Overview
During the reporting period, the Company achieved operating income of RMB10,964,777,968.45, a year-on-year increase of
9.84%. For domestic business, with the complex market environment and more rational consumer demands, the Company
outperformed the industry through continuous innovation and strong channel competitive advantages, achieved a slight increase in
sales compared to the same period last year, and gained market shares for core categories on both online and offline channels. For
export business, the Company's key export customer was undergoing the de-stocking stage during the same period last year, but
the sales to the Company's key export customer increased significantly as the demand rebounded for the European and American
markets in the current period, so that the export sales has achieved rapid growth. The Company realized a net profit attributable to
the shareholders of listed company of RMB940,593,117.65, representing a year-on-year increase of 6.81%. The basic earnings per
share was RMB1.181 representing a year-on-year increase of 7.66%. Among which, the realized revenue from the main business
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
of cookware was RMB2,942,755,534.25, a year-on-year increase of 16.95%; the realized revenue from the main business of
electric appliance was RMB7,874,467,595.73, a year-on-year increase of 7.24%; the realized revenue from the main business of
domestic sales was RMB7,432,782,168.71, a year-on-year increase of 0.15%; the realized revenue from the main business of
export sales was RMB3,400,896,802.76, a year-on-year increase of 38.78%.
Year-on-year alternation conditions of main financial data
Unit: RMB
This reporting Same period of Increase/decrease
Variation reason
period last year YoY (%)
Operating income 10,964,777,968.45 9,982,616,440.73 9.84%
Operating cost 8,289,510,974.07 7,444,829,256.71 11.35%
Sales expenses 1,138,911,660.13 1,098,400,634.74 3.69%
Administrative expenses 194,416,893.38 189,032,788.40 2.85%
Mainly due to the fluctuation of the
RMB exchange rate against the US
dollar during the reporting period,
Financial expenses -57,464,983.30 -42,251,541.59 -36.01%
which led to an increase in
exchange gains compared to the
same period last year.
Income tax expenses 231,061,024.52 218,895,998.85 5.56%
R&D investment 204,504,710.21 174,383,802.42 17.27%
Net cash flows from operating
548,524,464.81 555,040,511.12 -1.17%
activities
Mainly due to the decrease in cash
outflows from investing activities
during the reporting period,
Net cash flows from investing
1,910,642,639.60 1,087,172,418.94 75.74% specifically the reduction in cash
activities
expenditures for investments in
term deposit with maturities of over
three months and financial products.
Net cash flows from financing
-2,200,649,143.14 -2,702,496,787.61 18.57%
activities
Net increase in cash and cash Mainly due to the decrease in cash
262,818,756.57 -1,051,713,681.08 124.99%
equivalents outflow from investing activities.
The profit structure or profit source within the reporting period has been significantly changed.
□ Applicable Not-applicable
The profit structure or profit source within the reporting period has no change.
Operating income constitution
Unit: RMB
This reporting period Same period of last year
Increase/decrease
Percentage to total Percentage to total YoY (%)
Amount Amount
operating income operating income
Total operating
10,964,777,968.45 100% 9,982,616,440.73 100% 9.84%
income
By industry
Cookware 2,942,755,534.25 26.84% 2,516,239,088.69 25.21% 16.95%
Electric appliance 7,874,467,595.73 71.81% 7,342,682,261.73 73.55% 7.24%
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Others 147,554,838.47 1.35% 123,695,090.31 1.24% 19.29%
By products
Cookware and
2,942,755,534.25 26.84% 2,516,239,088.69 25.21% 16.95%
utensil
Electrical cooking 4,643,226,317.56 42.35% 4,495,040,148.58 45.03% 3.30%
Food processor
1,900,634,481.61 17.33% 1,691,379,401.26 16.94% 12.37%
appliance
Other household
1,478,161,635.03 13.48% 1,279,957,802.20 12.82% 15.49%
electric appliances
By areas
Domestic sales 7,509,322,088.47 68.49% 7,501,764,475.40 75.15% 0.10%
Export sales 3,455,455,879.98 31.51% 2,480,851,965.33 24.85% 39.29%
Remarks: "Others" by industry, "Other household electric appliances" by product, and area-based operating income all include
other business incomes, the same below.
The industry, product, or region accounts for more than 10% of the Company's operating incomes or operating profits.
Applicable □ Not-applicable
Unit: RMB
Increase/ Increase/
Increase/ decrease
Gross decrease YoY decrease YoY
Operating income Operating cost YoY (%) for
margin (%) for (%) for gross
operating income
operating cost margin
By industry
Cookware 2,942,755,534.25 2,148,540,624.99 26.99% 16.95% 17.84% -0.55%
Electric
7,874,467,595.73 6,016,365,660.90 23.60% 7.24% 9.02% -1.24%
appliance
By products
Cookware and
2,942,755,534.25 2,148,540,624.99 26.99% 16.95% 17.84% -0.55%
utensil
Electrical
4,643,226,317.56 3,562,292,592.43 23.28% 3.30% 5.33% -1.48%
cooking
Food processor
1,900,634,481.61 1,513,298,778.54 20.38% 12.37% 13.19% -0.57%
appliance
Other household
electric 1,478,161,635.03 1,065,378,978.11 27.93% 15.49% 18.06% -1.57%
appliances
By areas
Domestic sales 7,509,322,088.47 5,404,596,263.65 28.03% 0.10% 0.62% -0.37%
Export sales 3,455,455,879.98 2,884,914,710.42 16.51% 39.29% 39.14% 0.08%
If the statistical caliber of the Company's operation business data is adjusted during the reporting period, the main business data for
the latest period after the statistical caliber is adjusted.
□ Applicable Not-applicable
IV. Analysis on Non-main Business
□ Applicable Not-applicable
14
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
V. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: RMB
End of this reporting period End of previous year
Increase/
Percentage Percentage decrease in Descriptions of major changes
Amount to total Amount to total proportion
assets assets
Mainly due to the dividend
expenditure in cash outflow of the
Monetary capital 1,994,094,960.25 17.96% 3,548,277,442.44 27.07% -9.11%
Company's financing activities
during the reporting period.
Mainly due to the increase in
accounts receivable of export
Accounts receivable 3,279,868,209.80 29.54% 2,858,247,356.03 21.81% 7.73%
business at the end of the reporting
period.
No significant change during the
Inventories 1,991,855,309.66 17.94% 2,262,683,387.31 17.26% 0.68%
reporting period.
Long-term equity No significant change during the
60,958,242.27 0.55% 61,678,984.35 0.47% 0.08%
investment reporting period.
No significant change during the
Fixed assets 1,188,793,243.58 10.71% 1,243,210,689.64 9.49% 1.22%
reporting period.
Construction in No significant change during the
69,151,667.36 0.62% 26,862,380.61 0.20% 0.42%
progress reporting period.
No significant change during the
Right-of-use assets 202,864,225.37 1.83% 223,503,573.14 1.71% 0.12%
reporting period.
Short-term No significant change during the
199,065,687.57 1.79% 199,741,167.36 1.52% 0.27%
borrowings reporting period.
Mainly due to the decrease in
advance payments from some
Contract liabilities 219,210,138.94 1.97% 862,706,076.18 6.58% -4.61%
distributors by subsidiaries during
the reporting period.
No significant change during the
Lease obligation 156,977,849.58 1.41% 177,281,125.36 1.35% 0.06%
reporting period.
Mainly due to the decrease in
investments in principal guaranteed
Transactional
180,164,631.01 1.62% 351,137,787.54 2.68% -1.06% floating-income financial products
financial assets
linked to interest rates at the end of
the reporting period.
Mainly due to the decrease in the
amount of the bank acceptance bills
Receivables financing 193,637,531.38 1.74% 363,532,765.35 2.77% -1.03%
of the subsidiaries at the end of the
reporting period.
Mainly due to the increase in
Non-current assets negotiable certificates of deposit
485,691,958.90 4.37% 285,783,958.92 2.18% 2.19%
due within one year due within one year at the end of the
reporting period.
Mainly due to the decrease in
negotiable certificates of deposit
Other debt investment 229,436,821.90 2.07% 665,522,383.56 5.08% -3.01%
due above one year at the end of the
reporting period.
15
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
2. Major foreign assets conditions
□ Applicable Not-applicable
3. Assets and liabilities measured at the fair value
Applicable □ Not-applicable
Unit: RMB
Accumulated
Profit and loss
fair value Impairment Amount of
from fair value Amount of purchasing
Item Opening balance changes loss of the selling of the Other changes Closing balance
changes in the of the current period
included into current period current period
current period
equity
Financial assets
1. Transactional
financial assets
351,137,787.54 2,860,671.44 180,000,000.00 353,833,827.97 180,164,631.01
(excluding derivative
financial assets)
2. Receivables
363,532,765.35 -169,895,233.97 193,637,531.38
financing
3. Other debt
951,306,342.48 81,038,191.78 331,561,868.04 14,346,114.58 715,128,780.80
investments
Total 1,665,976,895.37 2,860,671.44 261,038,191.78 685,395,696.01 -155,549,119.39 1,088,930,943.19
Financial liabilities 0.00 0.00
Content of other changes
Receivables financing: As the demand of daily fund management, Supor 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 measured at the fair value with their changes included into other comprehensive incomes.
Other debt investment: The business mode of negotiable certificates of deposit including collecting contractual cash flow and
selling the negotiable certificates of deposit as the target, so reclass the negotiable certificates of deposit as financial assets
measured at the fair value with their changes included into other comprehensive incomes. Interest revenue is accrued according to
the actual interest rate during the expected duration.
Are there any major changes about the valuation attribute of Company's main assets during the reporting period?
□ Yes No
4. Restrictions of assets and rights by the end of reporting period
Please see No.18. "Assets with title or use right restrictions" of Part VII "Notes to Items of Consolidated Financial Statements" of
SECTION X "FINANCIAL REPORT" for details.
VI. Investment Situation Analysis
1. General condition
□ Applicable Not-applicable
16
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
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
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 loss Accumulated Purchase Sales
amount in the
Initial from fair fair value amount amount
Derivative investment Opening Closing Company's net
investment value changes changes during the during the
type balance amount assets at the
amount in the current included into reporting reporting
end of the
period equity period period
reporting
period
Foreign exchange
17,602.90 17,602.90 -84.48 0 36,435.40 40,791.87 13,246.43 2.59%
derivatives
Total 17,602.90 17,602.90 -84.48 0 36,435.40 40,791.87 13,246.43 2.59%
Explanation on detailed
accounting policies and
specific accounting
The Company recognizes, measures, and presents in accordance with Accounting Standards for Business
principles of hedging
Enterprises No. 22 -- Recognition and Measurement of Financial Instruments, Accounting Standards for
business and whether
Business Enterprises No. 24 - Hedging, and Accounting Standards for Business Enterprises No. 37 -
they have been
Presentation of Financial Instruments. There are no significant changes compared to the previous
significantly changed
reporting period.
during the 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
Explanation on realized period, the amount included in the current profit and loss was RMB-844,800 yuan, and the amount
gains and losses during included in equity was 0 yuan. The amount of profit or loss is entirely derived from the net fair value
the reporting period 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.
Explanation on hedging The value of hedging tools of the Company changed inversely to that of hedged foreign exchange
effect accounts receivable and payable, effectively achieving the risk management objectives.
17
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
During the reporting period, the Company conducted assessment on the fluctuation of the value of foreign
exchange 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
Self-owned capital
derivative investment
In order to hedge the foreign exchange risk in operating activities, reduce the impact of exchange rate
fluctuations, and give full play to the hedging function of foreign exchange derivative transaction, the
Company implemented foreign exchange derivative transaction business consistent with its business
scale, term, and currency.
(I) Risks of conducting foreign exchange derivatives transactions
1. Market risks: market risks, such as losses resulted from changes in the price of foreign exchange
derivatives due to the fluctuated underlying interest rate, exchange rate or other market price, may arise.
2. Internal control risks: considering the specialty and complexity of foreign exchange derivative
transaction 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.
Risk analysis and control (II) Risk response measures
measure explanation for 1. Clarify the principles of foreign exchange derivative transaction: foreign exchange derivative
derivative holding during transaction is based on the hedging principle to avoid risks from exchange rate fluctuations to the greatest
the reporting period extent, and based on market conditions, operation strategies shall be adjusted in time to improve hedging
(including but not limited effects.
to market risk, liquidity 2. System construction: the Company has established the Management Measures for Foreign Exchange
risk, credit risk, Derivative Transactions, in which the scope of authorization, approval procedures, key operation points,
operation risk and law risk management and information disclosure concerning foreign exchange derivative transactions are well
risk) defined, so that the conduct and risks of foreign exchange derivative transactions can be effectively
regulated.
3. Product selection: prior to any FX derivative transactions, 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 derivatives 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 fair values of invested
derivatives during the
reporting period, specific The delivered foreign exchange derivatives were recorded as the profit and loss with instruments by the
methods used for Company. Changes in the fair value of undelivered foreign exchange derivatives were evaluated by the
analysis of the fair value comparison between the exchange rate of the derivative contract and the corresponding forward foreign
of derivatives and the exchange quotation provided by the contracting bank at the end of the period.
setting of related
assumptions and
parameters
Litigation-related
Not-applicable
situation (if applicable)
The disclosure date of
March 30, 2024
approval announcement
18
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
by the Board of Directors
of derivative investment
(if any)
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
VII. 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
VIII. 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 Revenue from main
Company name Registered capital Total assets Net assets Operating income Operating profit Net profit
type business
Wuhan Supor
Subsidiary Cookware 91,160,000 1,084,663,282.12 423,940,619.10 1,586,769,381.20 45,565,473.35 33,985,659.29
Cookware Co., Ltd.
Zhejiang Supor
Electrical Appliances
Subsidiary Electrical products 133,697,100 1,321,469,813.87 585,425,678.68 2,041,117,834.22 82,760,805.41 62,118,833.49
Manufacturing Co.,
Ltd.
Zhejiang Shaoxing
Small domestic
Supor Domestic
Subsidiary appliance, kitchen 610,000,000 3,429,342,938.07 2,501,354,095.63 3,456,059,410.82 545,753,009.04 464,088,780.09
Electrical Appliances
appliance
Co., Ltd.
Subsidiary obtaining and disposal details during the reporting period
□ Applicable Not-applicable
IX. Structural Subject under the Company's Control
□ Applicable Not-applicable
19
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
X. Risks Faced by the Company and Countermeasures
1. Risk from macroeconomic fluctuation
As of the first half of 2024, the domestic kitchen cookware and small domestic appliance sector experienced a challenging
retail landscape. The domestic appliances market has entered from the purely incremental era to the era of incremental and
inventory coexistence, the market shows a tendency of polarization. Looking ahead to the second half of 2024, Supor will adhere
to its strategic framework by stimulating demand for traditional product renewal through upgrades in product structure while
uncovering new growth avenues through novel categories and consumption scenarios. Furthermore, a new round of domestic
appliance ‘trade-in’ policy issued by the government is expected to boost the replacement consumption in the market.
With regards to exports, a rebound in demand is anticipated following the inventory de-stocking in European and American
markets, which suggests that Supor’s export business will likely continue its growth trajectory in the second half year. The
Company aims to collaborate with export customers to foster new product development, enhance operational efficiencies, and
reduce costs, thereby bolstering the competitiveness of its international trade operations.
2. Risk from price change of production elements
In the first half of 2024, key essential raw materials for cookware and small domestic appliances - such as aluminum, copper,
stainless steel, and plastics - have experienced relatively stable price movements, which is beneficial for production costs among
industry players. Supor will continue to implement lean cost effectiveness programs aimed at enhancing internal labor productivity,
thereby improving the cost competitiveness of its domestic and export sales. 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
As market demand for cookware and domestic appliances polarized, high-end brands are intensifying their efforts in lower-
tier channels, adjusting their product pricing strategies to capture increased market share. Concurrently, the intensifying
competition between platforms is expected to amplify sales pressures. Moving forward, a robust competition centered on price-
performance ratios is anticipated.
Supor will remain committed to its product innovation-centric strategy, continually enhancing its innovation capabilities to
launch high-value, high-margin products aimed at capturing leading positions in sales and market share within the mid to high
pricing segments. At the same time, the Company will selectively increase marketing towards online traffic-driving products while
leveraging its multi-brand and multi-category strengths. Continued investment in marketing resources will help to gain incremental
sales and boost market share, and the Company is also targeting investments in lower third- and fourth-tier markets to reach a
broader consumer group. Supor will focus on strengthening its core categories and accelerating its expansion into emerging
categories and niche markets, ensuring stable and sustained growth moving forward.
4. Product export and exchange loss caused by exchange rate fluctuation
The Company's export business with its major export customer, Groupe SEB, has been settled in RMB, with low exchange
rate risk.
XI. Implementation of the Action Plan for "Double Improvement of Quality and Return"
Whether the Company has disclosed an action plan for "double improvement of quality and return" or not.
□ Yes No
20
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION IV CORPORATION GOVERNANCE
I. General Meeting of Shareholders and Interim General Meeting of Shareholders Held
during the Reporting Period
1. General meeting of shareholders in the reporting period
Investors
Session Meeting type participation Convening date Date of disclosure Meeting resolution
ratio
See Announcement on Resolutions of
The First Interim
Interim General the First Interim General Meeting of
General Meeting
Meeting of 7.71% January 10, 2024 January 11, 2024 Shareholders 2024 (Announcement
of Shareholders
Shareholders No.: 2024-002) disclosed on
2024
http://www.cninfo.com.cn for details
See Announcement on Resolutions of
Annual General the Annual General Meeting of
Annual General
Meeting of Shareholders for 2023 Fiscal Year
Meeting of 7.10% April 25, 2024 April 26, 2024
Shareholders for (Announcement No.: 2024-026)
Shareholders
2023 Fiscal Year disclosed on
http://www.cninfo.com.cn for details
See Announcement on Resolutions of
The Second the Second Interim General Meeting
Interim General
Interim General of Shareholders 2024
Meeting of 6.76% May 13, 2024 May 14, 2024
Meeting of (Announcement No.: 2024-032)
Shareholders
Shareholders 2024 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
II. Change of Directors, Supervisors and Senior Executives
□ Applicable Not-applicable
The Company directors, supervisors and senior executives did not change within the reporting period. As for details, please see
2023 Annual Report.
III. Profit Distribution and Conversion from Capital Reserves to Share Capital during the
Reporting Period
□ Applicable Not-applicable
The Company planned not to distribute cash dividend, issue bonus shares, or convert capital reserves to share capital in the semi-
annual period.
IV. Implementation of Company's Equity Incentive Plan, Employee Stock Holding Plan or
Other Employee Incentive Measures
Applicable □ Not-applicable
21
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
1. Equity incentive
(I) 2021 Equity Incentive Plan
1. On January 26, 2024, the 6th Session of the Eighth Board of Directors and 6th Session of the Eighth Board of Supervisors
reviewed and adopted 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 Employees in the first unlock period. The
number of Restricted Stock unlocked is 555,750 shares. The date of circulation of the Restricted Stock unlockable during the first
unlock period is February 2. 2024.
For detailed contents, see 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 and 31, 2024 (Announcement No.: 2024-005, 2024-007).
2. On August 30, 2023, the 2nd Session of the Eighth Board of Directors and the 2 nd Session of the Eighth Board of Supervisors
reviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of 2 incentive
employees due to their resignation, the Company decided to repurchase and cancel 2,000 shares of restricted stock. In addition, on
March 29, 2024, the 7th Session of the Eighth Board of Directors and the 7th Session of the Eighth Board of Supervisors reviewed
and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the disqualification of 2 incentive
employees due to their resignation, the Company decided to repurchase and cancel 5,500 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
2023 Fiscal Year held on April 25, 2024. The Company repurchased and canceled 7,500 shares of restricted stock of 2021 Equity
Incentive Plan at the price of RMB 1 per share and paid totally RMB 7,500 to the above resigned incentive employees. After
confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completed
repurchase and cancellation on August 7, 2024.
For detailed contents, see 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, 2023, March 30, 2024 and August 8, 2024 (Announcement No.:
2023-063, 2024-021 and 2024-039).
(II) 2022 Equity Incentive Plan
1. On August 30, 2023, the 2nd Session of the Eighth Board of Directors and the 2 nd Session of the Eighth Board of Supervisors
reviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of 3 incentive
employees due to their resignation, the Company decided to repurchase and cancel 3,250 shares of restricted stock. In addition, on
March 29, 2024, the 7th Session of the Eighth Board of Directors and the 7th Session of the Eighth Board of Supervisors reviewed
and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the disqualification of 4 incentive
employees due to their resignation, the Company decided to repurchase and cancel 9,500 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
2023 Fiscal Year held on April 25, 2024. The Company repurchased and canceled 12,750 shares of restricted stock of 2022 Equity
Incentive Plan at the price of RMB 1 per share and paid totally RMB 12,750 to the above resigned incentive employees. After
confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completed
repurchase and cancellation on August 7, 2024.
For detailed contents, see 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, 2023, March 30, 2024 and August 8, 2024 (Announcement No.:
2023-063, 2024-021 and 2024-039).
(III) 2023 Equity Incentive Plan
During the reporting period, there were no updates on the implementation of the equity incentive plan 2023 of the Company.
22
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
2. Implementation of the employee stock holding plan
□ Applicable Not-applicable
3. Other employee incentive measures
Applicable □ Not-applicable
(I) Performance Incentive Fund
On March 29, 2024, the 7th Session of the Eighth Board of Directors and the 7th Session of the Eighth Board of Supervisors
reviewed and adopted the Proposal on Accrual and Allocation Scheme of Performance Incentive Fund in 2023. According to the
Administration Measures for the Performance Incentive Fund, the accrual condition of the Performance Incentive Fund in 2023 is
satisfied, the Company plans to accrue RMB22,903,379 incentive funds and distribute to 285 eligible reward employees.
For detailed contents, see Announcement of Accrual and Allocation Scheme of Performance Incentive Fund in 2023 disclosed
on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on March 30, 2024
(Announcement No.:2024-020).
23
2024 Semiannual 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
In accordance with the relevant system records, the status of administrative permissions for environmental protection is as
follows:
Name of the Company or subsidiary Completion date Valid period
The Company December 12, 2023 From June 30, 2023 to June 29, 2028
Zhejiang Supor Electrical April 3, 2024 From April 3, 2024 to April 2, 2029
Shaoxing Supor July 10, 2023 From July 10, 2023 to July 9, 2028
Wuhan Supor Cookware March 15, 2024 From September 11, 2023 to September 10, 2028
Industrial emission standard and pollutant discharge in production and operating activities
Type of main Name of main Number
Name of the Discharge Total
pollutant or pollutant or of Distribution of Executive pollutant Total discharge Excessive
Company or Discharge mode concentration discharge
specific specific discharge discharge ports discharge standard amount checked discharge
subsidiary /intensity amount
pollutant pollutant ports
Integrated Wastewater
CODcr 30mg/L Discharge Standard 2.65t 8.662t/a
Wastewater (GB8978-1996)
Entering the discharge port of Indirect Discharge for
Water
urban sewage 1 the wastewater Emission Limitation of
pollutants
Ammoniacal treatment plant station in plant Nitrogen and
1.5mg/L 0.13t 0.433t/a
nitrogen area Phosphorus for
Industrial Wastewater
The Company (DB33/887-2013) None
Emission Standard of
Air Pollutants for
Industrial Surface
Organized Workshops 1#, Coating (DB33/2146-
Air pollutants SO2 39 ＜200 mg/m 0.47t 3.06t/a
emission 2# and 6# 2018); Integrated
Emission Standard of
Air Pollutants
(GB16297-1996);
24
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Emission Standards of
Air Pollutants for
Industrial Kiln and
Furnace (GB9078-
1996)
Emission Standard of
Air Pollutants for
Industrial Surface
Coating (DB33/2146-
2018); Integrated
Emission Standard of
NOx ＜300 mg/m Air Pollutants 4.43t 14.66t/a
(GB16297-1996);
Emission Standards of
Air Pollutants for
Industrial Kiln and
Furnace (GB9078-
1996)
Integrated Wastewater
CODcr 139.385mg/l Discharge Standard 7.22t 111.1348t/a
(GB8978-1996)
Indirect Discharge for
Emission Limitation of
Ammoniacal General outlets of Nitrogen and
9.011 mg/l 0.42t 7.7794t/a
Zhejiang Supor Water nitrogen Indirect wastewater Phosphorus for
1
Electrical pollutants discharge (DW001) Industrial Wastewater
(DB33/887-2013)
Wastewater Quality
Total nitrogen Standards for
(calculated in 16.045mg/l Discharge to 0.7001t 15.5589t/a
N) Municipal Sewers
(GB/T 31962-2015)
Integrated Wastewater
CODcr 123.82mg/L Discharge Standard 46.345t 224.657t/a
(GB8978-1996)
Indirect Discharge for
Emission Limitation of
DW001
Ammoniacal Nitrogen and
Comprehensive 9.92mg/L 3.69t 9.363t/a
Shaoxing Supor Water nitrogen Discharge from Phosphorus for
1 Sewage
pollutants urban pipeline Industrial Wastewater
Discharge Outlet
(DB33/887-2013)
Wastewater Quality
Total nitrogen Standards for
(calculated in 14.55mg/L Discharge to 5.399t 33.447t/a
N) Municipal Sewers
(GB/T 31962-2015)
Integrated Wastewater
CODcr The main ＜500mg/L Discharge Standard 4.990t 19.38t/a
discharge outlet (GB8978-1996)
Wuhan Supor
Water Indirect of the sewage Wastewater Quality
Cookware 1
pollutants discharge treatment plant Standards for
Ammoniacal
on the north side ＜45mg/L Discharge to 0.263t 1.94t/a
nitrogen
of the plant area Municipal Sewers
(GB/T 31962-2015)
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 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
25
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
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 collects different waste gases and uses different treatment modes, and then discharges 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 waste 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, the
Company did not exceed the standard discharge, and met the relevant requirements of the competent department for ecological
environment.
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 12.809
million, including RMB 0.0317 million of environmental protection tax.
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.
Administrative penalties for environmental problems during the reporting period
None
Other environmental information that shall be made public
None
Measures and effects taken to reduce carbon emissions during the reporting period
Applicable □ Not-applicable
Supor actively responds to "carbon peaking and carbon neutrality" goals, and adhering to the operational concept of low-carbon
development, fully committed to promoting the implementation of distributed photovoltaic projects in various production bases,
facilitating the application of clean energy in production activities, cooperating with the market-oriented reform of environmental
resource elements such as carbon trading, and implementing low-carbon, green, and sustainable development through green
financial payment actions. The Company closely focuses on changes in the climate and environment, and takes multiple measures
to implement sustainable environmental protection behaviours and continuously promote green manufacturing upgrades.
In order to reduce carbon emissions in the value chain process of extracting, transporting and smelting primary mineral resources,
Supor has initiated and encouraged its customers to use raw materials such as recycled aluminium and recycled stainless steel, in
an effort to achieve a reduction in carbon footprint on the corporate side. In addision, following the photovoltaic project at the
Longshan plant area in Yuhuan Base, the Company's second photovoltaic project of Supor in Vietnam Base successfully achieved
grid-connected power generation at the end of the reporting period. During the reporting period, the Company carried out the
implementation of recycled raw materials projects, clean energy self-generation projects, etc., and achieved a reduction of 93,020
tonnes of carbon emissions.
Other environmental protection related information
None
26
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
II. Social Responsibilities
During the reporting period, the Company continued to actively support the national policies of rural revitalization and
common prosperity, adhering to its corporate vision and mission, and practicing the public welfare proposition of "sharing a better
life with every child", and gave full play to its advantages in industry and resources to donate funds and materials to improve the
conditions of basic education in rural mountainous areas in central and western China, supported life education in urban and rural
schools. It collaborated with urban and rural communities to cultivate children and adolescents of the new era who are aspiring,
active, and healthy in mind and body.
At present, the Company has completed the construction of 28 Supor Primary Schools in remote mountainous areas in the
central and western regions. In the first half of 2024, the Company has confirmed its intention to donate one more school. In
addition to the improvement of school facilities, Supor has partnered with relevant charitable organizations to continue offering
online live-streaming classes in art, foreign languages, and science to the needy Supor primary schools in mountainous areas.
Moreover, the Company also supplements volunteer teachers to make children in mountain villages to also access high-quality
educational resources. The Company also has a long-term focus on broadening the educational horizons of teachers in rural
mountainous areas, conducting teacher training and awards, which also could enhance the educational capability of each Supor
Primary School.
In the first half of 2024, Supor signed a strategic cooperation with the Zhejiang Provincial Youth Development Foundation,
which plans to donate RMB 3 million worth of money and goods during the next three years, the joint implementation of the
"Project Hope-Little Artist of Life", a project which supports the construction of life education spaces in urban and rural schools,
carries out life and labor classes, and improves life literacy education jobs, so that children can gain a better growth in practice.
Meanwhile, on the occasion of 30th anniversary, Supor has donated 10,000 children's insulated water bottles (valued at RMB
1.29 million) through the Zhejiang Provincial Youth Development Foundation. These water bottles will be delivered to remote
rural schools at the beginning of the term in the second half of the year.
In the future, the Company will actively support the national policies of rural revitalization and common prosperity, give full
play to the advantages of Supor's business capabilities and resources, 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
Coverage of rural students Person 30,000
Investment amount for improving the educational resources
RMB 10,000 184
(material value) in rural areas
Awards received (content, grade) —— ——
Benchmark Enterprise in Corporate Social Responsibility in
Zhejiang Province in 2023
27
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION VI SIGNIFICANT EVENTS
I. Commitments Fulfilled during the Reporting Period and Unfulfilled till the End of
Reporting Period by Actual Controllers, Shareholders, Related Parties, Acquirers and
Other Commitment Parties of the Company
□ Applicable Not-applicable
There were no commitments fulfilled during the reporting period and unfulfilled till the end of reporting period by actual
controllers, shareholders, related parties, acquirers and other commitment parties of the Company.
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. Employment and Disengagement of Certified Public Accountants
Whether the semiannual financial report has been audited
□ Yes No
The Company's semiannual report has not been audited.
V. Explanation on the Board of Directors and the Board of Supervisors on the "Non-
standard Audit Report" provided by the accounting firm during the reporting period
□ Applicable Not-applicable
VI. Explanation of the Board of Directors on Last Year's "Non-standard Audit Report"
□ Applicable Not-applicable
VII. Bankruptcy or Reorganization
□ Applicable Not-applicable
There was no bankruptcy, reorganization or related matters in the Company during the reporting period.
VIII. Litigation Matters
Significant litigations and arbitrations
□ Applicable Not-applicable
28
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
There was no significant litigation and arbitration occurred during the reporting period.
Other litigation matters
□ Applicable Not-applicable
IX. Punishment and Rectification
□ Applicable Not-applicable
There was no punishment and rectification during the reporting period.
X. Integrity of the Company, Its Controlling Shareholders and Actual Controllers
□ Applicable Not-applicable
XI. Major Related Transactions
1. Related transaction related to daily business
Applicable □ Not-applicable
Exceeding approved
Date of disclosure
Pricing Amount of Percentage Means of
transaction limit
Market price of
available same
(RMB 10,000)
Reference for
limit or not
Type of Contents of Price of
transaction
disclosure
Approved
principle of related to amount payments of
Related party Correlated relation related related related
related transaction of same related
transaction transaction transaction
transaction (RMB10,000) transaction transaction
Wuhan Anzai Associated Purchase of Finished Contract Bank transfer or
- 6,991.07 0.99% No -
Cookware Co., Ltd. enterprise commodity products price notes
Wuhan Anzai Associated Purchase of Bank transfer or
Accessories Market price - 1,715.82 0.24% No -
Cookware Co., Ltd. enterprise commodity notes
Same controlling
GROUPE SEB shareholder with Purchase of Finished Contract Bank transfer or
- 22.31 0.00% No -
EXPORT the controlling commodity products price notes
shareholder
Same controlling
GROUPE SEB shareholder with Purchase of Bank transfer or
Accessories Market price - 14.76 0.00% No -
EXPORT the controlling commodity notes
shareholder
Same controlling
shareholder with Purchase of Bank transfer or
TEFAL S.A.S. Accessories Market price - 1,398.99 0.20% No -
the controlling commodity notes
shareholder
Same controlling Purchase of Finished Contract Bank transfer or
LAGOSTINA S.P.A. - 240.96 0.03% No -
shareholder commodity products price notes
Same controlling
SEB
shareholder with Purchase of Bank transfer or
INTERNATIONAL Accessories Market price - 5.51 0.00% No -
the controlling commodity notes
SERVICE S.A.S.
shareholder
Same controlling
SEB
shareholder with Purchase of Finished Contract Bank transfer or
INTERNATIONAL - 16.54 0.00% No -
the controlling commodity products price notes
SERVICE S.A.S.
shareholder
Same controlling
GROUPE SEB shareholder with Purchase of Bank transfer or
Accessories Market price - 54.06 0.01% No -
MOULINEX the controlling commodity notes
shareholder
Same controlling Purchase of Finished Contract Bank transfer or
SEB ASIA LTD. - 33.37 0.00% No -
shareholder commodity products price notes
29
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Same controlling
shareholder with Purchase of Bank transfer or
ETHERA Accessories Market price - 2.37 0.00% No -
the controlling commodity notes
shareholder
WMF GROUPE Same controlling Purchase of Finished Contract Bank transfer or
- 3,062.57 0.43% No -
GMBH shareholder commodity products price notes
GROUPE SEB Same controlling Purchase of Finished Contract Bank transfer or
- 2.5 0.00% No -
KOREA LTD. shareholder commodity products price notes
SEB Professional Same controlling Purchase of Finished Contract Bank transfer or
- 9.72 0.00% No -
(Shanghai) Co,. Ltd. shareholder commodity products price notes
Wmf (heshan)
Same controlling Purchase of Finished Contract Bank transfer or
Manufacturing - 0.69 0.00% No -
shareholder commodity products price notes
Company Limited
GROUPE SEB
Same controlling Purchase of Finished Contract Bank transfer or
VIETNAM JOINT - 16.06 0.00% No -
shareholder commodity products price notes
STOCK COMPANY
Same controlling Sale of Finished Contract Bank transfer or
SEB ASIA LTD. - 319,864.22 29.17% No -
shareholder commodities products price notes
Same controlling Sale of Contract Bank transfer or
SEB ASIA LTD. Accessories - 1,678.23 0.15% No -
shareholder commodities price notes
Same controlling
shareholder with Sale of Finished Contract Bank transfer or
S.A.S. SEB - 346.6 0.03% No -
the controlling commodities products price notes
shareholder
Same controlling
shareholder with Sale of Contract Bank transfer or
S.A.S. SEB Accessories - 34.17 0.00% No -
the controlling commodities price notes
shareholder
Same controlling
shareholder with Sale of Finished Contract Bank transfer or
TEFAL S.A.S. - 176.25 0.02% No -
the controlling commodities products price notes
shareholder
Same controlling
shareholder with Sale of Contract Bank transfer or
TEFAL S.A.S. Accessories - 1,078.74 0.10% No -
the controlling commodities price notes
shareholder
Same controlling
GROUPE SEB shareholder with Sale of Finished Contract Bank transfer or
- 1,238.43 0.11% No -
MOULINEX the controlling commodities products price notes
shareholder
Company
Supor Group Co., controlled by Sale of Finished Bank transfer or
Market price - 202.23 0.02% No -
Ltd. related natural commodities products notes
person
Same controlling
SEB
shareholder with Sale of Contract Bank transfer or
INTERNATIONAL Accessories - 1,208.9 0.11% No -
the controlling commodities price notes
SERVICE S.A.S.
shareholder
Same controlling Sale of Contract Bank transfer or
LAGOSTINA S.P.A. Accessories - 42.6 0.00% No -
shareholder commodities price notes
Same controlling Sale of Finished Contract Bank transfer or
IMUSA USA LLC - 362.54 0.03% No -
shareholder commodities products price notes
Same controlling Sale of Contract Bank transfer or
IMUSA USA LLC Accessories - 1.04 0.00% No -
shareholder commodities price notes
SEB Professional Same controlling Sale of Finished Contract Bank transfer or
- 12.42 0.00% No -
(Shanghai) Co,. Ltd. shareholder commodities products price notes
GROUPE SEB
Same controlling Sale of Finished Contract Bank transfer or
VIETNAM JOINT - 742.03 0.07% No -
shareholder commodities products price notes
STOCK COMPANY
30
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
GROUPE SEB
Same controlling Sale of Contract Bank transfer or
VIETNAM JOINT Accessories - 1.83 0.00% No -
shareholder commodities price notes
STOCK COMPANY
GROUPE SEB Same controlling Sale of Finished Contract Bank transfer or
- 377.52 0.03% No -
CANADA shareholder commodities products price notes
GROUPE SEB Same controlling Sale of Contract Bank transfer or
Accessories - 432.42 0.04% No -
ANDEAN S.A. shareholder commodities price notes
Total -- -- 341,387.47 -- 0 -- -- -- -- --
Details of large sales return Not-applicable
Actual implementation of estimated total amount of related transaction by From January to June, 2024, the actual amount of daily related transactions between the Company and Groupe SEB reached RMB
category incurred during the period during the reporting period (if any) 3,324.7835 million.
Reason for the big difference between transacted price and market reference
Not-applicable
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 from external co-investment
□ Applicable Not-applicable
There was no related transaction involving joint external investment during the reporting period.
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.
31
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
XII. 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" of Part VII "Notes to Items of Consolidated Financial
Statements" of SECTION X "FINANCIAL REPORT".
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.
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
Actual Counter- Whether it is
Name of guaranteed announcement Guaranteed Actual Collateral (if Fulfilled
guaranteed Guarantee type guarantee Guarantee period guaranteed by
object related to the amount occurring date any) or not
amount (if any) related parties
guaranteed amount
Supor's distributors July 2023- General
July 2023 - June
who meet certain March 31, 2023 140,000.00 December 45,829.35 guarantee and Cash Yes Yes No
2024
conditions 2023 pledge
Supor's distributors General
January 2024- January 2024 -
who meet certain March 31, 2023 140,000.00 24,533.64 guarantee and Cash Yes No No
March 2024 September 2024
conditions pledge
Supor's distributors General
April 2024- April 2024 -
who meet certain March 30, 2024 140,000.00 13,148.21 guarantee and Cash Yes No No
June 2024 December 2024
conditions pledge
Total actual amount of external
Total external guaranteed amount approved
140,000.00 guarantee during the reporting 83,511.19
during the reporting period (A1)
period (A2)
Total external guaranteed amount approved at Total actual external guarantee
280,000.00 21,035.36
the end of the reporting period (A3) balance at the end of the reporting
32
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
period (A4)
Guarantee of the Company to subsidiaries
Disclosure date of
Actual Counter- Whether it is
Name of guaranteed announcement Guaranteed Actual Collateral (if Fulfilled
guaranteed Guarantee type guarantee Guarantee period guaranteed by
object related to the amount occurring date any) or not
amount (if any) related parties
guaranteed amount
Zhejiang Shaoxing July 2023-
Joint liability July 2023 - June
Supor Housewares Co., March 31, 2023 260,000.00 December 85,627.50 None None Yes No
guarantee 2024
Ltd. 2023
July 2023-
Wuhan Supor General July 2023 - June
March 31, 2023 30,000.00 December 4,885.00 None None Yes No
Cookware Co., Ltd. guarantee 2024
2023
Zhejiang Shaoxing
January 2024- Joint liability January 2024 -
Supor Housewares Co., March 31, 2023 260,000.00 29,103.20 None None No No
March 2024 guarantee September 2024
Ltd.
Wuhan Supor January2024- General January 2024 -
March 31, 2023 30,000.00 2,245.00 None None No No
Cookware Co., Ltd. March 2024 guarantee September 2024
Zhejiang Shaoxing
April 2024- Joint liability April 2024 -
Supor Housewares Co., March 30, 2024 260,000.00 88,810.00 None None No No
June 2024 guarantee December 2024
Ltd.
Approved total guaranteed amount towards Total actual amount of guarantee
the subsidiaries during the reporting period 400,000.00 to subsidiaries during the 210,670.70
(B1) reporting period (B2)
Total guaranteed amounts to subsidiaries Total actual guarantee balance for
approved at the end of the reporting period 700,000.00 subsidiaries at the end of the 120,158.20
(B3) reporting period (B4)
Guarantee of the subsidiaries to subsidiaries
Disclosure date of
Actual Counter- Whether it is
Name of guaranteed announcement Guaranteed Actual Collateral (if Fulfilled
guaranteed Guarantee type guarantee Guarantee period guaranteed by
object related to the amount occurring date any) or not
amount (if any) related parties
guaranteed amount
Zhejiang Shaoxing July 2023 –
General July 2023 - June
Supor Housewares Co., March 31, 2023 260,000.00 December 16,306.50 None None Yes No
guarantee 2024
Ltd. 2023
Zhejiang Shaoxing
January 2024- General January 2024 -
Supor Housewares Co., March 31, 2023 260,000.00 13,650.00 None None No No
March 2024 guarantee September 2024
Ltd.
Zhejiang Shaoxing
April 2024- General April 2024 -
Supor Housewares Co., March 30, 2024 260,000.00 6,349.00 None None No No
June 2024 guarantee December 2024
Ltd.
Approved total guaranteed amount towards Total actual amount of guarantee
the subsidiaries during the reporting period 0 to subsidiaries during the 36,305.50
(C1) reporting period (C2)
Total guaranteed amounts to subsidiaries Total actual guarantee balance for
approved at the end of the reporting period 0 subsidiaries at the end of the 19,999.00
(C3) reporting period (C4)
Total guaranteed amount of the Company (namely the total of the first three items)
Total guaranteed actual amount
Total approved guaranteed amount during the
540,000.00 during the reporting period 330,487.39
reporting period (A1+B1+C1)
(A2+B2+C2)
Total actual guarantee balance at
Total approved guaranteed amount at the end
980,000.00 the end of the reporting period 161,192.56
of the reporting period (A3+B3+C3)
(A4+B4+C4)
33
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Proportion of the total amount of actual guarantee (i.e. A4+B4+C4) to the
31.57%
net assets of the Company
Including:
Total guaranteed amount towards shareholders, actual controllers and
0
related parties (D)
Balance of debt guarantee directly or indirectly provided to the guaranteed
19,999.00
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) 19,999.00
Description of the guarantee liability occurred during the reporting period
or there is evidence that it is possible to bear joint and several liability for Not-applicable
settlement for the unexpired guarantee contract (if any)
Explanation on external guarantee provided against the established
Not-applicable
procedures (if any)
Note: The 7th Session of the Eighth Board of Directors and the Annual General Meeting of Shareholders for 2023 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 2024. Among them, the guaranteed amount for companies with higher
than 70% (inclusive) asset-liability ratio or over was RMB 2.65 billion, and RMB 1.35 billion for companies with an asset-liability
ratio below 70%.
Specific description for using the composite guarantee situation
None
3. Entrusted financing
Applicable □ Not-applicable
Unit: RMB 10,000
The amount of
impairment
Amount incurred
Source of fund for Overdue amount accrued from
Specific type of entrusted Undue balance
entrusted financing unclaimed overdue financial
financing
investment
products
Bank financial
Self-owned capital 30,000 10,000 0 0
products
Financial products
Self-owned capital 5,000 0 0 0
of securities trader
Others Self-owned capital 8,000 8,000 0 0
Total 43,000 18,000 0 0
Note: Details about the short-term financial products newly-purchased within first half year of 2024 can be found in the
Announcement of Short-term Investment Using Excessive Cash (Announcement No.: 2024-016) and Announcement of Progress of
Using Excessive Cash to Purchase Financial Products (Announcement No.: 2024-036) disclosed on the http://www.cninfo.com.cn.
Specific situation of high-risk entrusted finance with significant single amount, low security and poor liquidity
□ 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
34
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
4. Other significant contracts
□ Applicable Not-applicable
There were no other significant contracts involved in the Company during the reporting period.
XIII. Explanation on Other Important Matters
□ Applicable Not-applicable
The Company has no other important matters to be explained during the reporting period.
XIV. Important Matters of Subsidiaries
□ Applicable Not-applicable
35
2024 Semiannual 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
New Shares Converted
Share number Proportion Others Subtotal Share number Proportion
shares bonus capital
I. Restricted Outstanding
2,826,535 0.35% -655,218 -655,218 2,171,317 0.27%
Shares
1. Shares held by the state 0 0.00% 0 0 0 0.00%
2. Stated-owned legal
0 0.00% 0 0 0 0.00%
person shares
3. Other domestic
2,826,535 0.35% -655,218 -655,218 2,171,317 0.27%
shareholdings
Including: Shares held by
0 0.00% 0 0 0 0.00%
domestic legal entities
Shares held by domestic
2,826,535 0.35% -655,218 -655,218 2,171,317 0.27%
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 Outstanding
803,882,122 99.65% -4,494,782 -4,494,782 799,387,340 99.73%
Shares
1. Common shares in RMB 803,882,122 99.65% -4,494,782 -4,494,782 799,387,340 99.73%
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. Sum of Shares 806,708,657 100.00% -5,150,000 -5,150,000 801,558,657 100.00%
Reasons for the change of shares
Applicable □ Not-applicable
1. Top management of the Company unlocked 25% of the shares registered under their names based on holding shares at last
transaction date of the last year.
2. On February 2, 2024, totally 555,750 shares of Restricted Stock in the first unlock period under the 2021 Restricted Stock
Incentive Plan were unlocked and circulated on the market.
3. On April 24, 2024, totally 5,150,000 shares of repurchased shares held in the Company’s special stock repurchase account were
36
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
canceled. Following the completion of cancellation, the Company's total capital stock was reduced from 806,708,657 shares to
801,558,657 shares.
4. On August 7, 2024, totally 20,250 shares of restricted stock granted to the resigned incentive employees under Restricted Stock
Incentive Plan 2021 and 2022 were repurchased and canceled by the Company. Following the completion of repurchase and
cancellation, the Company's total capital stock was reduced from 801,558,657 shares to 801,538,407 shares.
Approval of change in shares
Applicable □ Not-applicable
1. The Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2021 Restricted Stock Incentive Plan was
reviewed and adopted by the 6th Session of the Eighth Board of Directors and 6th Session of the Eighth Board of Supervisors held
on January 26, 2024, agreeing to unlock the Restricted Stock for 270 qualified Incentive Employees in the first unlock period. The
number of Restricted Stock unlocked is 555,750 shares. The date of circulation of the Restricted Stock unlockable during the first
unlock period is February 2. 2024
2. The Proposal on Public Shares Repurchase Plan was reviewed and adopted by the 19th Session of the Seventh Board of
Directors held on March 29, 2023 and the Annual General Meeting of Shareholders for 2022 Fiscal Year held on April 25, 2023.
The above share repurchase plan was completed on April 24, 2024 and then the Company canceled 5,150,000 shares held in the
Company’s special stock repurchase account to reduce registered capital as authorized by the Annual General Meeting of
Shareholders for 2022 Fiscal Year. The Company completed the cancellation of repurchased stock on April 30, 2024, after it was
reviewed and confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
3. The Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted by the 2nd Session of the
Eighth Board of Directors and the 2nd Session of the Eighth Board of Supervisors held on August 30, 2023, and the 7 th Session of
the Eighth Board of Directors and the 7th Session of the Eighth Board of Supervisors held on March 29, 2024, totally seven
incentive employees did not meet the incentive requirements due to resignation. The Company plans to repurchase and cancel
20,250 shares of unlocked Restricted Stock at the price of RMB1.00 per share. The above proposal was reviewed and adopted by
the Annual General Meeting of Shareholders for 2023 Fiscal Year on April 25, 2024. The Company completed repurchase and
cancellation on August 7, 2024.
Transfer of shares changed
□ Applicable Not-applicable
Progress in the implementation of share repurchase
Applicable □ Not-applicable
(I) Public Shares Repurchase Plan 2023
The 19th Session of the Seventh Board of Directors held on March 29, 2023 and the Annual General Meeting of Shareholders
for 2022 Fiscal Year held on April 25, 2023 reviewed and adopted the Proposal on Public Shares Repurchase Plan, according to
which the Company shall repurchase its own shares from the secondary market through concentrated bidding at the maximum
price of no more than RMB 60.93 per share, and the top limitation of shares to be repurchased shall not exceed 16,134,174 shares
and the bottom limitation of shares shall not lower than 8,067,087 shares. The time limit for shares repurchase shall not be more
than 12 months from the date of the adoption of the plan by the general meeting of shareholders. The Company first implemented
this shares repurchase plan on June 2, 2023, and completed it on April 24, 2024. The number of shares actually repurchased by the
Company was 8,150,000 shares, accounting for 1.01% of the total shares of the Company (total capital stock before the
cancellation). In specific, the highest price is RMB 53.14 yuan per share and the lowest price is RMB 44.37 yuan per share with
total payment of RMB 400,080,700 (excluding the transaction fee). The Company canceled 5,150,000 shares held in the
Company’s special stock repurchase account to reduce registered capital as authorized by the Annual General Meeting of
Shareholders for 2022 Fiscal Year on April 30, 2024. Following the completion of cancellation, the Company's total capital stock
was reduced from 806,708,657 shares to 801,558,657 shares. There are 4,667,500 shares remaining in the Company’s special
stock repurchase account upon completion of the repurchased shares cancellation, which include the 3,000,000 repurchased shares
remained from the above-mentioned Public Shares Repurchase Plan and the 1,667,500 repurchased shares remained from previous
37
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Public Shares Repurchase Plan, and these remaining repurchased shares will be used for implementing future equity incentive
plans, and if the Company fails to do so within three years after the completion of the Public Shares Repurchase Plan, those
repurchased shares will be canceled accordingly. Before completion of cancellations and implementation of equity incentive plans,
the repurchased shares are deposited in the Company’s special stock repurchase account. Above repurchased shares are not
entitled to profit distribution, capitalization of provident fund, issuance of new shares and allotment of shares, pledge, voting rights
at shareholders' meetings and other related rights.
For detailed contents, see Announcement on Completion of Cancellation of Repurchased Shares from Public Shares
Repurchase Plan disclosed on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on May
7, 2024 (Announcement No.: 2024-031).
Progress in the reduction of shareholding of repurchased shares through auction
□ Applicable Not-applicable
Influence of shares changes on basic earnings per share and diluted earnings per share in latest year and period, net assets per share
attributable to the Company's common shareholders and other financial indexes.
Applicable □ Not-applicable
Since the repurchase and cancellation of 5,150,000 public shares has tiny influence on basic earnings per share and diluted
earnings per share in the current period and generates nearly no effect on other financial indicators (e.g. net assets per share
attributable to the Company's common shareholders).
Other contents that the Company thinks fit to disclose or the securities regulatory authority requires to disclose
□ Applicable Not-applicable
2. Changes of restricted outstanding shares
Applicable □ Not-applicable
Unit: share
Restricted Restricted
Restricted Restricted
outstanding outstanding
outstanding outstanding
Name of shares shares Restriction
shares at the shares at the Date of releasing restriction
Shareholders released in increased in reason
beginning of end of the
current current
the year year
period period
Unlocked 25% of the shares registered
Locked
under their names based on holding
Su Xianze 273,451 68,363 0 205,088 stocks of top
shares at the last transaction date of the
management
last year.
Unlocked 25% of the shares registered
Locked
under their names based on holding
Xu Bo 86,477 47,266 22,500 61,711 stocks of top
shares at the last transaction date of the
management
last year.
Unlocked 25% of the shares registered
Locked
under their names based on holding
Ye Jide 24,357 16,339 10,000 18,018 stocks of top
shares at the last transaction date of the
management
last year.
In the Company's 2021 Restricted Stock
Incentive Plan, 1,209,500 shares of
restricted stock were transferred to 293
Incentive Equity
incentive employees on January 27,
employees of incentive
1,111,500 555,750 0 555,750 2022. The above restricted stocks will
2021 Equity restricted
be unlocked in two phases after 24
Incentive Plan shares
months from the grant date, with the
unlocking proportion of each phase
being 50%. The first phase was
38
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
unlocked and listed for trading on
February 2, 2024. The second phase is
expected to be unlocked on January 27,
2025.
In the Company's 2022 Restricted Stock
Incentive Plan, 1,253,500 shares of
restricted stock were transferred to 288
incentive employees on November 10,
2022. A total of 79,000 restricted stock
of the postponed portion were
transferred to two incentive employees
on February 24, 2023. The above
restricted stocks will be unlocked in two
Incentive Equity
phases after 24 months from the grant
employees of incentive
1,330,750 0 0 1,330,750 date, with the unlocking proportion of
2022 Equity restricted
each phase being 50%. The first phase is
Incentive Plan shares
expected to be unlocked on November
10, 2024, and the first phase of the
postponed portion is expected to be
unlocked on February 24, 2025. The
second phase is expected to be unlocked
after November 10, 2025, and the
second phase of the postponed portion is
expected to be unlocked after February
24, 2026.
Total 2,826,535 687,718 32,500 2,171,317 -- --
II. Security Offering and Listing Information
□ Applicable Not-applicable
III. Number of Shareholders of the Company and Shareholding Information
Unit: share
Total number of preferred shareholder whose
Total number of common shareholders at
16,007 voting right is recovered at the end of 0
the end of the reporting period
reporting period (if any) (refer to Note 8)
Shareholding information on common shareholders holding more than 5% shares or top 10 common shareholders (excluding shares lent through refinancing
and financing)
Number of Pledge, marking or freezing
Increase/
common Number of Number of
decrease
Shareholding shares at the restricted non-restricted
Name Nature during the
ratio end of the common common Status of
reporting Share number
reporting shares shares share
period
period
SEB INTERNATIONALE Foreign Not-
83.17% 666,681,904 0 0 666,681,904 0
S.A.S legal entity applicable
Hong Kong Securities Foreign Not-
7.18% 57,576,593 -11,152,339 0 57,576,593 0
Clearing Company Ltd. legal entity applicable
Ningbo Bank-Zhongtai
Xingyuan Value-selected Not-
Others 0.81% 6,457,863 -455,777 0 6,457,863 0
Flexible Complex Securities applicable
Investment Funds
China Life Insurance Co.,
Not-
Ltd.-Traditional-General Others 0.47% 3,753,796 3,368,796 0 3,753,796 0
applicable
Insurance Products-005L-
39
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
CT001 (SSEC)
China Merchants Bank-
Zhongtai Yuheng Value- Not-
Others 0.26% 2,087,997 -302,951 0 2,087,997 0
selected Flexible Complex applicable
Securities Investment Funds
State-
Not-
SDIC Securities Co., Ltd. owned legal 0.25% 1,981,800 1,977,400 0 1,981,800 0
applicable
person
China Life Insurance Co.,
Not-
Ltd.-Individual Dividends- Others 0.24% 1,904,129 1,497,232 0 1,904,129 0
applicable
005L-FH002 (SSEC)
GF Fund Management-China
Life Insurance Co., Ltd. -
Traditional Insurance - GF
Not-
Fund China Life Stock Others 0.24% 1,904,100 1,904,100 0 1,904,100 0
applicable
Balanced Traditional&
Saleable Single Asset
Management Plan
National Social Security Fund Not-
Others 0.24% 1,897,000 1,897,000 0 1,897,000 0
No.414 applicable
GF Fund Management-China
Life Insurance Co., Ltd.-
Dividend Insurance- GF Fund Not-
Others 0.19% 1,561,802 1,561,802 0 1,561,802 0
China Life Stock Balanced applicable
Portfolio Single Asset
Management Plan (Saleable)
Strategic investor or general corporate
investor who becomes top 10 common
None
shareholder as a result of rights issue (if
any) (see Note 3)
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds and China
Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds are both
managed by Zhongtai Securities (Shanghai) Asset Management Co., Ltd. GF Fund Management-China Life
Insurance Co.,Ltd. - Traditional Insurance - GF Fund China Life Stock Balanced Traditional& Saleable Single
Explanation on the above-mentioned Asset Management Plan, National Social Security Fund No.414, and GF Fund Management-China Life
shareholder relationships or concerted Insurance Co.,Ltd.-Dividend Insurance- GF Fund China Life Stock Balanced Portfolio Single Asset
actions Management Plan (Saleable) are all managed by GF Funds Management Co., Ltd. China Life Insurance
Co.,Ltd.-Traditional-General Insurance Products-005L-CT001 (SSEC) and China Life Insurance Co., Ltd.-
Individual Dividends-005L-FH002 (SSEC) belong to China Life Insurance Company Ltd. It is unknown
whether other 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 4,667,500 shares in the special securities
repurchase special accounts of the top 10
account for repurchase.
shareholders (if any) (see Note 10)
Shareholding information of top 10 common shareholders holding non-restricted shares (excluding shares lent through refinancing and financing, and locked
stocks of top management)
Number of non-restricted Type of share
Name of Shareholders common 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
Hong Kong Securities Clearing Company Ltd. 57,576,593 RMB common shares 57,576,593
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex
6,457,863 RMB common shares 6,457,863
Securities Investment Funds
40
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
China Life Insurance Co., Ltd.-Traditional-General Insurance Products-
3,753,796 RMB common shares 3,753,796
005L- CT001 (SSEC)
China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex
2,087,997 RMB common shares 2,087,997
Securities Investment Funds
SDIC Securities Co., Ltd. 1,981,800 RMB common shares 1,981,800
China Life Insurance Co., Ltd.-Individual Dividends-005L-FH002 (SSEC) 1,904,129 RMB common shares 1,904,129
GF Fund Management-China Life Insurance Co., Ltd. - Traditional
Insurance - GF Fund China Life Stock Balanced Traditional& Saleable 1,904,100 RMB common shares 1,904,100
Single Asset Management Plan
National Social Security Fund No.414 1,897,000 RMB common shares 1,897,000
GF Fund Management-China Life Insurance Co., Ltd.-Dividend Insurance-
GF Fund China Life Stock Balanced Portfolio Single Asset Management 1,561,802 RMB common shares 1,561,802
Plan (Saleable)
Explanation on associated relationship or concerted actions among top 10
common shareholders holding non-restricted shares, and between top 10
Same as above
common shareholders holding non-restricted shares and top 10 common
shareholders
Information on top 10 common shareholders involved in securities margin
None
trading business (if any) (see Note 4)
Shareholders holding more than 5% of shares, the top 10 shareholders and the top 10 shareholders with unrestricted shares
participating in the refinancing business to lend shares
□ Applicable Not-applicable
Top 10 shareholders and the top 10 shareholders with unrestricted shares changed from the previous period due to
lending/returning of refinancing
□ Applicable Not-applicable
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?
□ 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.
IV. Shareholding Change of the Directors, Supervisors and Senior Executives
Applicable □ Not-applicable
Number of
Number of restricted Number of Number of
Number of Number of
shares held Number of stocks restricted restricted
increased decreased
at the shares held granted at stocks stocks
Position shares in shares in
Name Position beginning at the end of the granted in granted at
status the current the current
of the the period beginning the current the end of
period period
period (share) of the period the period
(share) (share)
(share) period (share) (share)
(share)
On-
Su Xianze Director 273,451 0 68,363 205,088 0 0 0
service
Cheung General On-
142,000 0 0 142,000 142,000 0 112,000
Kwok Wah Manager service
Chief Financial On-
Xu Bo 189,615 0 28,004 161,611 103,000 0 80,500
Officer service
Vice General
On-
Ye Jide Manager, 65,357 0 16,339 49,018 41,000 0 31,000
service
Board
41
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Secretary
Total -- -- 670,423 0 112,706 557,717 286,000 0 223,500
V. Change Condition of Controlling Shareholders and Actual Controllers
Change of controlling shareholders during the reporting period
□ Applicable Not-applicable
No change of controlling shareholders during the reporting period.
Change of actual controllers during the reporting period
□ Applicable Not-applicable
No change of actual controllers during the reporting period.
42
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION VIII INFORMATION ON PREFERRED SHARE
□ Applicable Not-applicable
No preferred share existed during the reporting period.
43
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION IX BONDS
□ Applicable Not-applicable
44
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION X FINANCIAL REPORT
I. Audit Report
Whether the semiannual report has been audited.
□ Yes No
The Company's semiannual financial report has not been audited.
II. Financial Statements
Unit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
June 30, 2024
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary capital 1,994,094,960.25 3,548,277,442.44
Settlement reserve
Loans to other banks
Transactional financial assets 180,164,631.01 351,137,787.54
Derivative financial assets
Notes receivable 11,404,422.19 15,311,935.98
Accounts receivable 3,279,868,209.80 2,858,247,356.03
Receivables financing 193,637,531.38 363,532,765.35
Advance payment 203,297,876.22 193,169,455.51
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 20,572,845.75 16,126,721.38
Including: interest receivable
Dividend receivable
Reverse-REPO financial assets
Inventories 1,991,855,309.66 2,262,683,387.31
Including: Data resource
Contract assets
Held-for-sale assets
45
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Non-current assets due within one year 485,691,958.90 285,783,958.92
Other current assets 136,145,137.64 142,423,696.22
Total current assets 8,496,732,882.80 10,036,694,506.68
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment 229,436,821.90 665,522,383.56
Long-term receivables
Long-term equity investment 60,958,242.27 61,678,984.35
Other equity instrument investment
Other non-current financial assets
Investment properties
Fixed assets 1,188,793,243.58 1,243,210,689.64
Construction in progress 69,151,667.36 26,862,380.61
Productive biological assets
Oil and gas assets
Right-of-use assets 202,864,225.37 223,503,573.14
Intangible assets 417,024,637.16 428,978,842.72
Including: Data resource
Development expenditures
Including: Data resource
Goodwill
Long-term unamortized expenses
Deferred income tax assets 437,848,496.35 420,252,246.30
Other non-current assets
Total non-current assets 2,606,077,333.99 3,070,009,100.32
Total assets 11,102,810,216.79 13,106,703,607.00
Current liabilities:
Short-term borrowings 199,065,687.57 199,741,167.36
Central bank loan
Loans from other banks
Transactional financial liabilities
Derivative financial liabilities
Notes payable 1,415,650,000.00 1,235,000,000.00
Accounts payable 3,254,803,073.88 3,205,607,853.18
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Advance receipt
Contract liabilities 219,210,138.94 862,706,076.18
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 257,217,660.22 332,138,705.28
Taxes payable 180,676,801.15 346,462,733.51
Other payables 131,222,347.65 147,617,550.27
Including: Interest payable
Dividend payable
Handling fee and commission payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 48,284,181.59 47,568,255.43
Other current liabilities 59,451,694.32 147,652,214.40
Total current liabilities 5,765,581,585.32 6,524,494,555.61
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 156,977,849.58 177,281,125.36
Long-term payables
Long-term employee remuneration payable 31,420,092.66 15,836,573.16
Estimated liabilities 6,590,495.50 7,258,295.50
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 194,988,437.74 200,375,994.02
Total liabilities 5,960,570,023.06 6,724,870,549.63
Owners' equities:
Share capital 801,558,657.00 806,708,657.00
Other equity instruments
47
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Including: Preferred share
Perpetual bond
Capital reserve 179,823,947.06 173,110,627.02
Minus: treasury share 235,152,830.25 488,057,333.76
Other comprehensive incomes -30,337,791.30 -19,176,454.59
Special reserve
Surplus reserve 115,870,910.37 355,939,901.82
General risk reserve
Undistributed profit 4,274,758,119.60 5,516,807,622.62
Total owners' equities belonging to parent company 5,106,521,012.48 6,345,333,020.11
Minority shareholders' equities 35,719,181.25 36,500,037.26
Total owners' equities 5,142,240,193.73 6,381,833,057.37
Total liabilities and owners' equities 11,102,810,216.79 13,106,703,607.00
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 Closing balance Opening balance
Current assets:
Monetary capital 679,383,633.86 1,992,971,901.60
Transactional financial assets 100,095,631.95 250,544,611.01
Derivative financial assets
Notes receivable 67,100.00 400,000.00
Accounts receivable 652,066,286.26 624,130,389.56
Receivables financing
Advance payment 22,772,374.78 16,615,946.99
Other receivables 621,669,532.19 674,127,502.50
Including: interest receivable
Dividend receivable
Inventories 185,178,096.49 145,018,340.32
Including: Data resource
Contract assets
Held-for-sale assets
Non-current assets due within one year 208,315,863.02
Other current assets 27,435,534.47 19,163,058.36
48
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Total current assets 2,288,668,190.00 3,931,287,613.36
Non-current assets:
Debt investment
Other debt investment 20,672,657.53
Long-term receivables
Long-term equity investment 2,850,801,729.46 2,848,631,066.61
Other equity instrument investment
Other non-current financial assets
Investment properties
Fixed assets 132,173,404.55 142,355,870.24
Construction in progress 508,356.64 973,451.33
Productive biological assets
Oil and gas assets
Right-of-use assets 3,134,642.28 3,583,014.87
Intangible assets 67,607,540.97 72,474,395.25
Including: Data resource
Development expenditures
Including: Data resource
Goodwill
Long-term unamortized expenses
Deferred income tax assets 27,967,861.04 25,592,220.27
Other non-current assets
Total non-current assets 3,102,866,192.47 3,093,610,018.57
Total assets 5,391,534,382.47 7,024,897,631.93
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable 33,950,000.00
Accounts payable 207,959,391.77 211,009,320.51
Advance receipt
Contract liabilities 4,997,556.65 1,702,589.31
Employee remuneration payable 41,212,755.52 52,532,428.56
Taxes payable 15,548,095.94 54,783,273.55
Other payables 2,446,314,120.56 1,905,723,034.41
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Including: Interest payable
Dividend payable
Held-for-sale liabilities
Non-current liabilities due within one year 1,044,513.30 965,476.36
Other current liabilities 98,585.00 462,826.72
Total current liabilities 2,717,175,018.74 2,261,128,949.42
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 2,083,779.33 2,369,608.01
Long-term payables
Long-term employee remuneration payable 14,785,891.69 7,212,613.48
Estimated liabilities
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 16,869,671.02 9,582,221.49
Total liabilities 2,734,044,689.76 2,270,711,170.91
Owners' equities:
Share capital 801,558,657.00 806,708,657.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 256,584,087.96 249,621,368.24
Minus: treasury share 235,152,830.25 488,057,333.76
Other comprehensive incomes
Special reserve
Surplus reserve 163,285,337.05 403,354,328.50
Undistributed profit 1,671,214,440.95 3,782,559,441.04
Total owners' equities 2,657,489,692.71 4,754,186,461.02
Total liabilities and owners' equities 5,391,534,382.47 7,024,897,631.93
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
3. Consolidated profit statement
Unit: RMB
Semiannual period in
Item Semiannual period in 2024
2023
I. Total Operating Incomes 10,964,777,968.45 9,982,616,440.73
Including: Operating income 10,964,777,968.45 9,982,616,440.73
Interest revenues
Premium earned
Revenue from handling fees and commissions
II. Total Operating Costs 9,832,752,716.56 8,925,480,649.92
Including: Operating cost 8,289,510,974.07 7,444,829,256.71
Interest expense
Expense of handling fees and commissions
Surrender value
Net payment for insurance claims
Net amount of withdrawn reserve fund for insured
liability
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 62,873,462.07 61,085,709.24
Sales expenses 1,138,911,660.13 1,098,400,634.74
Administrative expenses 194,416,893.38 189,032,788.40
R&D expenses 204,504,710.21 174,383,802.42
Financial expenses -57,464,983.30 -42,251,541.59
Including: interest expenses 7,397,414.94 7,200,648.89
Interest revenues 53,980,532.58 49,382,432.80
Plus: other incomes 40,169,658.31 30,211,321.84
Investment income ("-" for loss) 16,336,567.86 31,013,219.53
Including: investment income on associated enterprise
-705,587.15 -460,529.47
and joint venture
Income from derecognition of financial assets
measured at amortized cost
Exchange gain ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 164,631.01 129,103.13
Credit impairment loss ("-" for loss) -16,494,532.64 -13,035,606.89
Asset impairment loss ("-" for loss) -933,627.88 -5,771,681.15
Assets disposal income ("-" for loss) -1,320,658.00 -997,982.47
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
III. Operating Profit ("-" for Loss) 1,169,947,290.55 1,098,684,164.80
Plus: Non-operating income 3,690,918.17 1,689,086.57
Minus: Non-operating expense 2,408,825.95 2,243,477.16
IV. Total Profit ("-" for Total Loss) 1,171,229,382.77 1,098,129,774.21
Minus: Income tax expenses 231,061,024.52 218,895,998.85
V. Net Profit ("-" for Net Loss) 940,168,358.25 879,233,775.36
(I) By business continuity
1. Net profit under continuing operation ("-" for net loss) 940,168,358.25 879,233,775.36
2. Net profit under discontinuing operation ("-" for net loss)
(II) By ownership
1. Net profit attributable to the shareholders of the parent
940,593,117.65 880,618,279.78
company ("-" for net loss)
2. Minority shareholders' profit and loss ("-" for net loss) -424,759.40 -1,384,504.42
VI. After-tax Net Amount of Other Comprehensive Incomes -11,517,433.32 17,969,332.42
After-tax net amount of other comprehensive income belonging
-11,161,336.71 17,051,537.83
to the owners of parent company
(I) Other comprehensive incomes that cannot be reclassified
into profit and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive incomes 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
-11,161,336.71 17,051,537.83
profit and loss
1. Other comprehensive incomes that can 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 incomes
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial
-11,161,336.71 17,051,537.83
statement
7. Others
After-tax net amount of other comprehensive incomes
-356,096.61 917,794.59
attributable to minority shareholders
VII. Total Comprehensive Incomes 928,650,924.93 897,203,107.78
Total comprehensive incomes attributable to owners of parent
929,431,780.94 897,669,817.61
company
Total comprehensive incomes attributable to minority
-780,856.01 -466,709.83
shareholders
VIII. Earnings Per Share:
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
(I) Basic earnings per share 1.181 1.097
(II) Diluted earnings per share 1.181 1.095
For the enterprise merger under the same control in the current period, 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
4. Profit statement of the parent company
Unit: RMB
Semiannual period in
Item Semiannual period in 2024
2023
I. Operating Incomes 1,382,747,931.38 1,194,339,510.40
Minus: Operating cost 1,222,405,392.74 1,005,374,520.95
Taxes and surcharges 5,620,347.12 6,391,944.74
Sales expenses 18,767,270.13 15,107,839.17
Administrative expenses 76,890,166.72 64,044,074.29
R&D expenses 4,439,247.54 2,004,150.57
Financial expenses -38,655,392.70 -32,823,697.01
Including: interest expenses 79,770.88 74,956.71
Interest revenues 32,934,074.79 25,712,716.21
Plus: other incomes 465,330.54 3,527,610.88
Investment income ("-" for loss) 3,855,999.30 11,840,400.25
Including: investment income on associated enterprise
-705,587.15 -460,529.47
and joint 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) 95,631.95 129,103.13
Credit impairment loss ("-" for loss) -1,973,393.91 -2,598,181.78
Asset impairment loss ("-" for loss) -1,413,262.79 -299,930.56
Assets disposal income ("-" for loss) 135,792.11 95,194.01
II. Operating Profit ("-" for Loss) 94,446,997.03 146,934,873.62
Plus: Non-operating income 1,443,710.40 45,121.42
Minus: Non-operating expense 1,491,388.60 1,312,764.27
III. Total Profit ("-" for Total Loss) 94,399,318.83 145,667,230.77
Minus: Income tax expenses 23,101,698.25 33,221,156.34
IV. Net Profit ("-" for Net Loss) 71,297,620.58 112,446,074.43
(I) Net profit under continuing operation ("-" for net loss) 71,297,620.58 112,446,074.43
53
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
(II) Net profit under discontinuing operation ("-" for net loss)
V. After-tax Net Amount of Other Comprehensive Incomes
(I) Other comprehensive incomes that cannot be reclassified
into profit and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive incomes 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 loss
1. Other comprehensive incomes that can 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 incomes
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 Incomes 71,297,620.58 112,446,074.43
VII. Earnings Per Share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Semiannual period in
Item Semiannual period in 2024
2023
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of
8,765,885,030.93 7,924,920,392.30
services
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 interests, handling fees and commissions
54
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Net increase of loans from other banks
Net increase of repurchase capital
Net cash from security transaction agency
Tax refund received 251,971,215.79 131,101,803.34
Other cash receipts related to operating activities 62,494,211.70 57,545,486.47
Subtotal of cash inflows from operating activities 9,080,350,458.42 8,113,567,682.11
Cash payment for purchasing commodities and receiving
5,455,884,638.55 4,978,905,125.78
services
Net increase 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 payment for interests, handling fees and commissions
Cash payment of policy dividend
Cash paid to and for employees 1,040,161,140.75 871,059,709.61
Taxes paid 730,898,645.07 576,347,884.12
Other cash expenses related to operating activities 1,304,881,569.24 1,132,214,451.48
Subtotal of cash outflows from operating activities 8,531,825,993.61 7,558,527,170.99
Net cash flows from operating activities 548,524,464.81 555,040,511.12
II. Net Cash Flows from Investing Activities:
Cash received from return of investments
Cash received from investment incomes 56,035,340.47 53,860,834.80
Net cash received from disposal of fixed assets, intangible assets
1,900.00
and other long-term assets
Net cash receipts from disposal of subsidiaries and other
business units
Other cash receipts related to investing activities 2,200,000,000.00 2,647,094,578.70
Subtotal of cash inflows from investing activities 2,256,035,340.47 2,700,957,313.50
Net cash paid for the construction of fixed assets, intangible
85,392,700.87 73,784,894.56
assets and 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 payments related to investing activities 260,000,000.00 1,540,000,000.00
Subtotal of cash outflows from investing activities 345,392,700.87 1,613,784,894.56
Net cash flows from investing activities 1,910,642,639.60 1,087,172,418.94
III. Net Cash Flows from Financing Activities:
Cash from absorbing investments
55
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Including: cash received by subsidiaries from minority
shareholder investment
Cash received from obtaining borrowings 198,257,000.00
Other cash receipts related to financing activities 79,000.00
Subtotal of cash inflows from financing activities 198,257,000.00 79,000.00
Cash paid for debt repayment 200,000,000.00
Cash paid for distribution of dividends or profits or for payment
2,175,512,858.61 2,439,504,228.21
of interests
Including: dividends or profits paid by subsidiaries to minority
shareholders
Other cash payments related to financing activities 23,393,284.53 263,071,559.40
Subtotal of cash outflows from financing activities 2,398,906,143.14 2,702,575,787.61
Net cash flows from financing activities -2,200,649,143.14 -2,702,496,787.61
IV. Impact of Change in Exchange Rate on Cash and Cash
4,300,795.30 8,570,176.47
Equivalents
V. Net Increase in Cash and Cash Equivalents 262,818,756.57 -1,051,713,681.08
Plus: balance of cash and cash equivalents at the beginning of
1,405,752,936.36 2,395,932,752.38
the period
VI. Balance of Cash and Cash Equivalents at the End of the Period 1,668,571,692.93 1,344,219,071.30
6. Cash flow statement of parent company
Unit: RMB
Semiannual period in
Item Semiannual period in 2024
2023
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of
1,247,199,054.55 968,764,013.06
services
Tax refund received 96,971,620.67 52,436,667.54
Other cash receipts related to operating activities 25,231,429.56 18,459,582.37
Subtotal of cash inflows from operating activities 1,369,402,104.78 1,039,660,262.97
Cash payment for purchasing commodities and receiving
1,196,059,089.13 783,891,523.17
services
Cash paid to and for employees 114,388,017.61 89,142,331.41
Taxes paid 72,222,198.39 28,289,765.89
Other cash expenses related to operating activities 70,371,621.82 50,106,557.48
Subtotal of cash outflows from operating activities 1,453,040,926.95 951,430,177.95
Net cash flows from operating activities -83,638,822.17 88,230,085.02
II. Net Cash Flows from Investing Activities:
Cash received from return of investments
Cash received from investment incomes 37,841,364.97 31,219,971.79
Net cash received from disposal of fixed assets, intangible assets
and other long-term assets
Net cash receipts from disposal of subsidiaries and other
56
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
business units
Other cash receipts related to investing activities 1,440,000,000.00 1,350,000,000.00
Subtotal of cash inflows from investing activities 1,477,841,364.97 1,381,219,971.79
Net cash paid for the construction of fixed assets, intangible
8,974,479.83 10,814,471.93
assets and other long-term assets
Cash paid for investment
Net cash paid for acquiring subsidiaries and other business units
Other cash payments related to investing activities 200,051,289.70 892,817,724.85
Subtotal of cash outflows from investing activities 209,025,769.53 903,632,196.78
Net cash flows from investing activities 1,268,815,595.44 477,587,775.01
III. Net Cash Flows from Financing Activities:
Cash from absorbing investments
Cash received from obtaining borrowings
Other cash receipts related to financing activities 678,196,836.22 1,650,034,224.45
Subtotal of cash inflows from financing activities 678,196,836.22 1,650,034,224.45
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment
2,175,512,858.61 2,439,504,228.21
of interests
Other cash payments related to financing activities 262,785.24 230,282,075.87
Subtotal of cash outflows from financing activities 2,175,775,643.85 2,669,786,304.08
Net cash flows from financing activities -1,497,578,807.63 -1,019,752,079.63
IV. Impact of Change in Exchange Rate on Cash and Cash
4,215,136.49 -26,143.91
Equivalents
V. Net Increase in Cash and Cash Equivalents -308,186,897.87 -453,960,363.51
Plus: balance of cash and cash equivalents at the beginning of
987,570,531.73 1,083,953,956.62
the period
VI. Balance of Cash and Cash Equivalents at the End of the Period 679,383,633.86 629,993,593.11
7. Statement of Changes in Consolidated Owners' Equities
Amount in the current period
Unit: RMB
Semiannual period in 2024
Owners' equities belonging to parent company
Other equity Gene Total
Item Other Speci Minority
instruments Minus: ral shareholde owners'
Share Capital comprehen al Surplus Undistribute Othe rs' equities
Preferr Perpet treasury risk Subtotal equities
capital Othe reserve sive reser reserve d profit rs
ed ual share reser
rs incomes ve
share bond ve
I. Closing -
806,708,65 173,110,62 488,057,33 355,939,90 5,516,807,62 6,345,333,02 36,500,03 6,381,833,05
Balance of 19,176,454
7.00 7.02 3.76 1.82 2.62 0.11 7.26 7.37
Last Year .59
Plus:
changes of
57
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
accounting
policies
E
rror
correction
of prior
period
O
thers
II.
Opening -
806,708,65 173,110,62 488,057,33 355,939,90 5,516,807,62 6,345,333,02 36,500,03 6,381,833,05
Balance of 19,176,454
7.00 7.02 3.76 1.82 2.62 0.11 7.26 7.37
Current .59
Year
III. Current
Period - - - - - - - -
6,713,320.0
Increase 5,150,000.0 252,904,50 11,161,336 240,068,99 1,242,049,50 1,238,812,00 780,856.0 1,239,592,86
4
("-" for 0 3.51 .71 1.45 3.02 7.63 1 3.64
Decrease)
(I) Total of
- -
comprehen 940,593,117. 929,431,780. 928,650,924.
11,161,336 780,856.0
sive 65 94 93
.71 1
incomes
(II) Capital
invested - - -
6,713,320.0
and 5,150,000.0 252,904,50 247,198,75 7,269,070.04 7,269,070.04
4
reduced by 0 3.51 3.51
owners
1.
Common
shares
invested by
owners
2. Capital
invested by
other
equity
instrument
holders
3. Amount
of share-
based
payment 6,713,320.0 -
7,269,070.04 7,269,070.04
included 4 555,750.00
into
owners'
equities
- - -
4. Others 5,150,000.0 252,348,75 247,198,75
0 3.51 3.51
(III) Profit - - -
7,129,762.0
distributio 2,182,642,62 2,175,512,85 2,175,512,85
6
n 0.67 8.61 8.61
1.
Appropriat
7,129,762.0 -
ion of
6 7,129,762.06
surplus
reserve
2.
58
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Appropriat
ion of
general
risk
reserve
3.
Distributio
- - -
n to
2,175,512,85 2,175,512,85 2,175,512,85
owners (or
8.61 8.61 8.61
shareholde
rs)
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
after
carrying
over other
comprehen
sive
incomes
6. Others
(V) Special
reserve
1.
Appropriat
ion of
59
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
current
period
2.
Applicatio
n of
current
period
(VI)
Others
IV. Closing
-
Balance of 801,558,65 179,823,94 235,152,83 115,870,91 4,274,758,11 5,106,521,01 35,719,18 5,142,240,19
30,337,791
Current 7.00 7.06 0.25 0.37 9.60 2.48 1.25 3.73
.30
Period
Amount of last year
Unit: RMB
Semiannual period in 2023
Owners' equities belonging to parent company
Other equity Minority Total
Item Other
instruments Minus: General shareholde owners'
Share Capital compreh Special Surplus Undistribut
Prefer Perpet treasury risk Others Subtotal rs' equities equities
capital Oth reserve ensive reserve reserve ed profit
red ual share reserve
ers incomes
share bond
I. Closing
-
Balance 808,654, 125,368,98 99,724,823 356,924,81 5,865,316, 7,036,084, 36,605,324 7,072,690,18
20,454,8
of Last 476.00 9.44 .49 1.32 233.53 863.54 .74 8.28
23.26
Year
Plus
: changes
of
accountin
g policies
E
rror
correctio
n of prior
period
O
thers
II.
Opening
-
Balance 808,654, 125,368,98 99,724,823 356,924,81 5,865,316, 7,036,084, 36,605,324 7,072,690,18
20,454,8
of 476.00 9.44 .49 1.32 233.53 863.54 .74 8.28
23.26
Current
Year
III.
Current
Period - - - - -
26,960,674 138,472,60 17,051,5 -
Increase 1,945,81 74,841,171 1,573,832, 1,745,079, 1,745,546,19
.13 6.38 37.83 466,709.83
("-" for 9.00 .80 101.75 486.97 6.80
Decrease
)
(I) Total
of
17,051,5 880,618,27 897,669,81 - 897,203,107.
comprehe
37.83 9.78 7.61 466,709.83 78
nsive
incomes
60
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
(II)
Capital
invested - - - -
26,960,674 26,960,674 26,960,674.1
and 1,945,81 91,733,144 86,136,735 3,650,590.
.13 .13 3
reduced 9.00 .12 .12 00
by
owners
1.
Common
shares
invested
by
owners
2. Capital
invested
by other
equity
instrume
nt
holders
3.
Amount
of share-
based - - -
26,960,674 26,960,674 26,960,674.1
payment 75,750.0 3,726,340. 3,650,590.
.13 .13 3
included 0 00 00
into
owners'
equities
- - -
4. Others 1,870,06 88,006,804 86,136,735
9.00 .12 .12
(III)
- - -
Profit 11,295,563
2,450,799, 2,439,504, 2,439,504,22
distributi .32
791.53 228.21 8.21
on
1.
Appropri -
11,295,563
ation of 11,295,563
.32
surplus .32
reserve
2.
Appropri
ation of
general
risk
reserve
3.
Distributi
on to - - -
owners 2,439,504, 2,439,504, 2,439,504,22
(or 228.21 228.21 8.21
sharehold
ers)
4. Others
(IV)
Internal
carry-
over
61
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
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
comprehe
nsive
incomes
6. Others
(V)
Special
reserve
1.
Appropri
ation of
current
period
2.
Applicati
on of
current
62
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
period
- -
(VI) 230,205,75
230,205,75 230,205,750.
Others 0.50
0.50 50
IV.
Closing
-
Balance 806,708, 152,329,66 238,197,42 282,083,63 4,291,484, 5,291,005, 36,138,614 5,327,143,99
3,403,28
of 657.00 3.57 9.87 9.52 131.78 376.57 .91 1.48
5.43
Current
Period
8. Statement of Changes in Owners' Equities of the Parent Company
Amount in the current period
Unit: RMB
Semiannual period in 2024
Other equity instruments Other Speci
Item Minus: Total
Capital comprehen al Surplus Undistribute Other
Share capital treasury owners'
Preferre Perpetua Other reserve sive reserv reserve d profit s
share equities
d share l bond s incomes e
I. Closing Balance of Last 806,708,657. 249,621,368. 488,057,333. 403,354,3 3,782,559,44 4,754,186,4
Year 00 24 76 28.50 1.04 61.02
Plus: changes of
accounting policies
Error correction
of prior period
Others
II. Opening Balance of 806,708,657. 249,621,368. 488,057,333. 403,354,3 3,782,559,44 4,754,186,4
Current Year 00 24 76 28.50 1.04 61.02
III. Current Period - - - -
-
Increase ("-" for 6,962,719.72 252,904,503. 240,068,9 2,111,345,00 2,096,696,7
5,150,000.00
Decrease) 51 91.45 0.09 68.31
(I) Total of 71,297,620.5 71,297,620.
comprehensive incomes 8 58
- -
(II) Capital invested and - 7,518,469.7
6,962,719.72 252,904,503. 247,198,7
reduced by owners 5,150,000.00 2
51 53.51
1. Common shares
invested by owners
2. Capital invested by
other equity instrument
holders
3. Amount of share-based
7,518,469.7
payment included into 6,962,719.72 -555,750.00
2
owners' equities
- -
-
4. Others 252,348,753. 247,198,7
5,150,000.00
51 53.51
- -
7,129,762.
(III) Profit distribution 2,182,642,62 2,175,512,8
06
0.67 58.61
1. Appropriation of 7,129,762. -
63
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
surplus reserve 06 7,129,762.06
- -
2. Distribution to owners
2,175,512,85 2,175,512,8
(or shareholders)
8.61 58.61
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
comprehensive incomes
6. Others
(V) Special reserve
1. Appropriation of
current period
2. Application of current
period
(VI) Others
IV. Closing Balance of 801,558,657. 256,584,087. 235,152,830. 163,285,3 1,671,214,44 2,657,489,6
Current Period 00 96 25 37.05 0.95 92.71
Amount of last year
Unit: RMB
Semiannual period in 2023
Other equity instruments Other
Item Minus: Total
Capital comprehen Special Surplus Undistribute Other
Share capital treasury owners'
Preferre Perpetua Other reserve sive reserve reserve d profit s
share equities
d share l bond s incomes
I. Closing Balance of 808,654,476. 202,697,74 99,724,823.4 404,339,238. 4,331,212,70 5,647,179,3
Last Year 00 1.40 9 00 1.66 33.57
Plus: changes of
accounting policies
Error
correction of prior
period
Others
II. Opening Balance of 808,654,476. 202,697,74 99,724,823.4 404,339,238. 4,331,212,70 5,647,179,3
Current Year 00 1.40 9 00 1.66 33.57
64
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
III. Current Period - - -
- 26,617,120 138,472,606.
Increase ("-" for 74,841,171.8 2,342,004,30 2,530,646,7
1,945,819.00 .14 38
Decrease) 0 7.10 84.14
(I) Total of 112,446,074. 112,446,074
comprehensive incomes 43 .43
- -
(II) Capital invested - 26,617,120 - 26,617,120.
91,733,144.1 86,136,735.1
and reduced by owners 1,945,819.00 .14 3,650,590.00 14
2 2
1. Common shares
invested by owners
2. Capital invested by
other equity instrument
holders
3. Amount of share-
based payment 26,617,120 - - 26,617,120.
-75,750.00
included into owners' .14 3,726,340.00 3,650,590.00 14
equities
- -
-
4. Others 88,006,804.1 86,136,735.1
1,870,069.00
2 2
- -
11,295,563.3
(III) Profit distribution 2,450,799,79 2,439,504,2
2
1.53 28.21
-
1. Appropriation of 11,295,563.3
11,295,563.3
surplus reserve 2
2
2. Distribution to - -
owners (or 2,439,504,22 2,439,504,2
shareholders) 8.21 28.21
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
defined benefit plan
5. Retained earnings
after carrying over
other comprehensive
incomes
6. Others
(V) Special reserve
1. Appropriation of
current period
65
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
2. Application of
current period
-
230,205,750.
(VI) Others 230,205,750
50
.50
IV. Closing Balance of 806,708,657. 229,314,86 238,197,429. 329,498,066. 1,989,208,39 3,116,532,5
Current Period 00 1.54 87 20 4.56 49.43
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; products are
cookware and small domestic appliances.
The financial statement was released after the approval of the Company's Board of Directors on August 30, 2024.
By June 30, 2024, 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.
2. Continuing operation
The Company has the ability to continue operations for at least 12 months since the end of this reporting period, and there are no
important matters affecting the ability to continue operations.
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V. Important Accounting Policies and Estimates
Prompt for specific accounting policies and estimates:
Supor has formulated a number of specific accounting policies and estimates based on the actual characteristics of its production
and operation, as well as the relevant provisions of accounting standards for business enterprises.
When preparing the financial statement, the management layer of Supor was required to use estimation and hypothesis, which
would have influences on the application of the accounting policies as well as the amounts of the assets, liabilities, revenues and
costs. The actual situation may differ from these estimates. The management of Supor has carried out continuous evaluation for
judgment involving critical assumption and uncertainties, and alteration influence of accounting estimate shall be confirmed
during the current period of alteration and future period. The major accounting estimates of Supor includes depreciation and
amortization of fixed assets and intangible assets (refer to Note V, 17, and 20), impairment of various assets (refer to Note VII, 4,
6, 8, 13, as well as Note XIX, 1 and 2), deferred income tax asset and deferred income tax liabilities (refer to Note VII, 17),
disclosure of fair value (refer to Note XIII), and share-based payments (refer to Note XV).
1. Statement of abidance of the Accounting Standards for Business Enterprises
The financial statement conforms to the requirements of Accounting Standards for Business Enterprises issued by the Ministry
of Finance and has reflected relevant information such as the consolidated financial conditions and financial conditions on June 30,
2024, semiannual operating results and operating results, consolidated cash flow and cash flow in the half year of 2024 of the
Company and Supor on an authentic and intact basis. In addition, the financial statements of the Company and Supor 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
(hereinafter referred to as "CSRC") in 2023 and related financial statements and their notes.
2. Accounting period
The accounting period of Supor is divided into annual period and interim period; an interim period refers to a reporting period
which is shorter than a whole fiscal year. Supor 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 Supor purchases the assets used for processing to the time of
realizing cash or cash equivalents. Supor 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. Supor
uses RMB as the recording currency to prepare the financial statement.
5. Method for determining importance criteria and selection criteria
Applicable □ Not-applicable
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Item Importance criteria
Significant accounts receivable written off
Other important debt investment
Important construction in progress
5% of total profit in the last year
Significant accounts payable with an age of more than one 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 event of two or more separate enterprises combining 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 Supor 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
in enterprise merger is measured based on the book value of the merging party in the consolidated financial statements of the final
controlling party on the merger date. As to the difference between the book value of net assets 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 direct expenses incurred from enterprise merger shall be included into the 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 this is 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 included into the 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 included
into initial recognition amount of the equity securities or debt securities. Contingent consideration involved shall be included into
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the 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 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
included into the 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 included into
the 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 for 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
included into the 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 for control and preparation method for consolidated financial statements
(1) Principles for defining the scope of consolidated financial statements
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 Supor has control over an investee, Supor considers substantive rights related to
the investee (including substantive rights held by Supor 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 merger scope shall include the Company and all its subsidiaries, and "subsidiaries" refers to the bodies
under the control of Supor.
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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
From the date of obtaining actual control right of the subsidiaries' net assets and production operation decision, Supor will begin
to include them into the merger scope; subsidiaries will not be included into the merger scope from the date when Supor loses the
actual control right. As for the disposed subsidiaries, the operating results and cash flow before disposal date have been properly
included into the consolidated profit statement and consolidated cash flow statement; as for subsidiaries disposed in the current
period, the beginning amount 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
included into the consolidated profit statement and consolidated cash flow statement, and the beginning amount and contrast
amount 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 included into the consolidated profit statement
and the consolidated cash flow statement, and the contrast amount 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 included into the investment income of the current period when the control right is lost. As for other
comprehensive incomes 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 Supor 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
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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 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 Supor 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 Supor, 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 Supor 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 measured at the fair value with their changes included into other
comprehensive incomes, except that the exchange difference created by other book balance changes other than by amortized costs
(including decrease in value) is included into other comprehensive incomes, are included into the 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 measured at the fair value with their changes included into other
comprehensive incomes, and is included into other comprehensive income or recognized as other comprehensive incomes; other
differences are included into current profits and losses.
(3) Conversion method for 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'
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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.
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 Supor'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 exchange rate change 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
included into the current disposal profits and losses.
10. Financial instruments
When Supor 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, Supor
divides the financial assets into: financial assets measured by amortized cost, financial assets measured at the fair value with their
changes included into other comprehensive incomes, financial assets measured at the fair value with their changes included into
the current profits and losses.
The business mode of the Company's management of financial assets means that how Supor 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
Supor is from the collection of contractual cash flow, sales of financial assets, or both. Supor, 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.
Supor evaluates the contractual cash flow characteristic 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, Supor evaluates the contract terms that are likely to cause changes in the distribution of time
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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 Supor 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 measured at the fair value with
their changes included into the current profits and losses, related transaction cost shall be included into the current profits and
losses directly; as to other categories of financial assets, related transaction cost shall be included into initial recognition amount.
Accounts receivable or notes receivable that are from sale of products or rendering of labors, and do not include or take into
account significant financing parts are taken as initial recognition amount by Supor based on the consideration amount that Supor
is entitled to receive.
(a) Financial assets measured by amortized cost
The business mode of Supor 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 generated at specific date are only payment of principal and interests for outstanding principal amount. Effective interest
method is used by Supor 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 included into the current profits and losses.
(b) Financial assets measured at the fair value with their changes included into other comprehensive incomes
The business mode of Supor to manage such financial assets is aimed at receiving contractual cash flows as well as sales; the
contractual cash flow characteristics of such financial assets are consistent with basic loan arrangements. Supor measures such
financial assets measured at the fair value with their changes included into other comprehensive incomes, but impairment losses or
gains, exchange profits and losses, and interest revenue calculated based on effective interest method are included into the current
profits and losses. When the financial asset is derecognized, the accumulated gains or losses previously included into other
comprehensive income shall be transferred out of other comprehensive income and included into the current profits and losses.
In addition, for investments in non-transactional equity instruments, Supor can irrevocably designate them as financial assets
measured at the fair value with their changes included into 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. Supor includes the related dividend income of such financial assets into the current profits and losses with the change in
fair value included into other comprehensive income. When the financial asset is derecognized, the accumulated gains or losses
previously included into other comprehensive income shall be transferred out of other comprehensive income to retained earnings
and not included into the current profits and losses.
(c) Financial assets measured at the fair value with their changes included into the current profits and losses.
Supor recognizes foregoing financial assets measured by amortized cost and that are not financial assets measured at the fair
value with their changes included into other comprehensive incomes as financial assets measured at the fair value with their
changes included into the current profits and losses. In addition, during initial recognition, in order to eliminate or significantly
reduce accounting mismatches, Supor designates part of the financial assets measured at the fair value with their changes included
into the current profits and losses. As to such financial assets, subsequent measurement shall be carried out by Supor based on fair
value, and the resulting gains or losses (including interest and dividend income) are included into 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 measured at the fair value with their changes included into the current
profits and losses, financial guarantee liabilities and other financial liabilities upon initial recognition. As to financial liabilities
measured at the fair value with their changes included into the current profits and losses, related transaction cost shall be included
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into the current profits and losses directly; as to other financial liabilities, related transaction cost shall be included into initial
recognition amount.
(a) Financial liabilities measured at the fair value with their changes included into the current profits and losses
Financial liabilities measured at the fair value with their changes included into the 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 included into the 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 included into the current profits and losses.
For financial liabilities measured at the fair value with their changes included into the current profits and losses, changes in their
fair value caused by changes in Supor's own credit risk are included into other comprehensive income, and when such liabilities
are stopped to be recognized, accumulated changes in their fair value caused by changes in Supor's own credit risk that is included
into other comprehensive income are transferred to retained earnings. Other changes in fair value are included into 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, Supor 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
A financial guarantee contract refers to a contract that requires Supor 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 of the debt
instrument at maturity.
After initial recognition, the income related to the financial guarantee contract is apportioned and included into the 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 included into the 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 Supor 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 Supor 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 included
into other comprehensive income shall be included into the 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
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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 included into other comprehensive income, and the foregoing book value amortized
shall be included into the current profits and losses.
For financial assets sold with right of recourse, or to transfer financial assets by endorsement, Supor 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, Supor will carry
out derecognition of such financial liabilities or part of them. In case Supor (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 Supor substantially modifies the contract terms of
the 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.
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 Supor in the current
profits and losses.
(5) Offset of financial assets and financial liabilities
In case Supor has the legal right of offsetting the financial assets and financial liabilities recognized and such legal right is
executable now, and Supor 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 Supor deducts all
liabilities. Supor'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. Supor 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 Supor 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 measured at the fair value with their changes included into other comprehensive incomes, including mainly notes receivable,
accounts receivable, receivables financing, other receivables and other debt investments. Moreover, for contract assets and some
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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 Supor 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 weighed 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 Supor, namely, the present value of a shortage of cash. Wherein,
the purchased or underlying financial assets with credit impairment of Supor shall be discounted as per effective interest rate based
on credit adjustment.
The general method for measuring expected credit loss is as follows, Supor 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, Supor 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, Supor 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, Supor 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 Supor 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 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, Supor 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 Supor 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
Supor 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, Supor 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
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The expected credit losses of all kinds of financial assets are calculated by Supor 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.
The portfolio includes very low-risk amounts such as the payment of export third-party
Portfolio 2: low-risk portfolio
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 Supor 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 dividends receivable, receivables from government departments
Portfolio 2: low-risk portfolio
and others with very low risk.
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 receivables financing
Item Basis for determination of portfolio
All the notes receivable of Supor are bank acceptance bills, and Supor treats all the notes
Notes receivable
receivable as a single portfolio.
The receivables financing of Supor refers to bank acceptance bills with dual holding
Receivables financing purposes. Since the accepting banks are all highly credit-rated banks, Supor treats all
receivables financing as a single portfolio.
12. Receivables financing
The notes receivable and accounts receivable measured at the fair value with their changes included into 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.
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13. Inventories
(1) Classification
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
The low value consumables are amortized using the one-time write-off method or the half amortization method; packing
materials are amortized using the 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. As regards the raw material held for production, its
net realizable value shall be confirmed based on the realizable value of the finished product. 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 the individual inventory item and the net realizable value of the inventory is
included into the current profits and losses.
Inventory category Recognition basis of the net realizable value
Finished products Estimated selling price minus estimated sales expense and related taxes
Raw materials
Estimated selling price minus estimated costs to complete, estimated sales expense, and related
taxes
Low value consumables
14. Contract assets
Supor lists the customer's unpaid contract consideration as contract assets in the balance sheet, under which Supor 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".
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15. Held-for-sale assets
(1) Held-for-sale non-current assets or non-current assets in the disposal group
In case Supor 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; Supor 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 -- Impairment of Assets, 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 Supor, 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 included into the 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 included into the 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.
(2) Discontinuing operation
Supor defines discontinuing operation as separately identifiable components that meet one of the following conditions and have
been disposed of or classified as held for sale by Supor.
- The component represents an independent main business or a single main business place;
- The component is part of an associated plan for the disposal of an independent main business or a single main business place;
- The component is the subsidiary obtained specially for resale.
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For discontinuing operation presented in current period, Supor lists profit and loss of continuous operation as well as
discontinuing operation in the current profit statement and presents the information on previous profit and loss of continuous
operation in the profit statement in the comparison period as profit and loss of discontinuing operation in the comparable
accounting period anew.
16. Long-term equity investment
The long-term equity investment mentioned in this part refers to the long-term equity investment of which Supor has control
right, common control right or significant impact on the invested units. Long-term equity investments that Supor does not have
control, common control or significant impact on the invested unit are accounted for as financial assets measured at the fair value
with their changes included into the current profits and losses. If such assets are not non-transactional, Supor may specify these
capitals as measured at the fair value with their changes included into other comprehensive incomes at the time of initial
recognition. Relevant accounting policies can be seen in Note V. "10. Financial instruments".
Common control refers to common control on a certain arrangement according to related provisions by Supor and related
activities of the arrangement can be decided only after the consent of the participant sharing the control right. Significant impact
refers to Supor'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.
(1) Determination of investment cost
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 measured at the fair value with their
changes included into 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 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
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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 Supor, the fair value of equity securities issued
by Supor, 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 included into the
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 new 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 under the 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 included into the 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, the book value of the long-
term equity investment shall be adjusted and included into the 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 Supor, financial statements of the invested
unit shall be adjusted according to Supor's accounting policy and accounting period. Besides, investment income, other
comprehensive income, etc. shall be recognized on this basis. For transactions between Supor and associated enterprise or joint
venture, if the assets launched or sold do not constitute the business, the unrealized internal trading profits and losses shall be
offset according to the proportion attributable to Supor, and the investment profits and losses shall be recognized on this basis. In
case the part incurred between Supor and the invested unit without internal transaction loss belongs to the asset impairment loss, it
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shall not be offset. If the assets invested by Supor 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 included into the current profits and losses in full. If the assets sold by Supor 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 included into the current profits and losses. If Supor'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 Supor
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 included into the current investment losses. In case the net profit is realized by the
invested unit later, after Supor 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 interest 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 subsidiaries 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 included into the 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 for 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 included into the 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 included into 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 the investee.
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 recognized 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 direct 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.
If Supor 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
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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 included into the current
profits and losses on the date of losing control. Before Supor acquires the control of the invested unit, for other comprehensive
incomes recognized 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 recognized by the equity method shall be
settled and transferred to the current profits and losses in proportion. Among them, 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 Supor 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 included into the 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 investee due to the changes in other owners' equities, except for the net profits and losses, other comprehensive incomes and
profit distribution, will be reckoned in the current investment incomes when the equity method is abandoned.
Supor will take the multiple transactions to dispose the subsidiaries' equity investment step by step until losing 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, rendering of services, leasing or operation management with
service life of more than 1 fiscal year. The fixed assets can be recognized only when the relevant economic interests are possible to
flow into Supor 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
Depreciation life Annual depreciation
Categories Depreciation method Residual rate
(years) rate
Buildings and
Straight-line method 20-30 0%-10% 3.00%-5.00%
structures
General equipment Straight-line method 3-7 0%-10% 12.86%-33.33%
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 Supor may obtain from the current disposal of fixed assets
after deducting the expected disposal expenses at the expiration of its expected service life.
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(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 asset in Note V.
"22. Impairment of long-term assets".
(4) Other explanations
The subsequent expenditures related to fixed assets shall be included into 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 these, shall be included into the 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
Supor by different ways and apply to different rates of depreciation and depreciation methods, Supor recognizes each component
as a 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 derecognized. The difference of the amount left as the book value and relevant taxes are deducted
from the disposal income obtained from the sale, transfer, discard or damage of the fixed asset shall be included into the current
profits and losses.
Supor 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 recognized as per actual engineering expenditures, including various project
expenditures under construction, capitalized borrowing expenses 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.
Disclosure of criteria and timing for the transfer of construction in progress to fixed assets by category:
Categories Criteria and timing for the transfer of construction in progress to fixed assets
Buildings and structures Achieve the completion standards stipulated in the contract or project plan
General/special equipment Meets the design and contractual qualified standards of installation and commissioning
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".
Supor shall sell the products or by-products produced before the fixed assets reach the intended usable state, and according to the
provisions of Accounting Standards for Business Enterprises No. 14 -- Revenue, Accounting Standards for Business Enterprises
No. 1 -- Inventory, etc., the relevant income and cost will be accounted for and included into the current profits and losses.
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
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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 expenses in the occurrence 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 included into the 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 are owned or controlled by Supor and have no physical form.
The initial measurement of intangible assets shall be conducted according to costs. Expenditures related to intangible assets shall
be included into the cost of intangible assets if the relevant economic benefits may flow in Supor and costs can be reliably
measured. Other expenditures, except for these, shall be included into the current profits and losses once occurred.
Land use right acquired is usually calculated as 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 assets.
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 of each intangible asset, the basis for its determination, and the amortization method are as follows:
Amortization period
Item Determination basis Amortization method
(years)
Land use right 43-50 Allowed period Straight-line method
The term of bring economic benefits to the
Software 2-10 Straight-line method
Company.
Trademark use right 10 Allowed period Straight-line method
Pollutant discharge right 5 Contract period 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.
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(2) R&D expenditure
Expenditures on the internal R&D items of Supor are divided into research expenditure and development expenditure.
Research expenditure is included into the 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 included into the 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
have 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 included
into the 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 expenses
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 Supor mainly include improvement
expenditure of fixed assets leased for operation. Long-term unamortized expenses are amortized with 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, Supor 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.
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 included into impairment losses. The recoverable amount shall be
determined as the net amount obtained by the fair value of the asset less the 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 agreement 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 fees 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
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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 by the asset group to which the asset
belongs. Asset group refers to the minimum asset portfolio that can generate 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 Supor to transfer commodities to customers for the received or receivable
consideration from customers. In the event that customers have paid the contractual consideration or Supor has obtained the
unconditional collection right before it transfers the commodities to customers, Supor 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
(1) Employee remuneration
Supor's employee remuneration mainly includes short-term employee remuneration, post-employment benefits, termination
benefits and other long-term employee benefits. Including:
Short-term employee remuneration mainly includes salary, bonus, allowance and subsidy, employee benefits expense, medical
premium, maternity premium, occupational injuries premium, housing accumulation fund, labor union expenditure, personnel
education fund, non-monetary benefit, etc. During the accounting period in which Supor's employees provide services for Supor,
actual short-term employee remuneration incurred shall be recognized as the liabilities and included into the current profits and
losses or relevant asset costs. And the non-monetary benefits shall be measured at fair value.
Post-employment benefits mainly include basic endowment insurance, unemployment insurance, and annuity. Plans of post-
employment benefit include defined contribution plans. In case that defined contribution plans are adopted, corresponding amount
which shall be deposited will be included into the 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 Supor cannot
unilaterally withdraw termination benefits provided for cancellation of labor relation plan or downsizing suggestion and on the
date when Supor recognizes 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 and included into the 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 Supor for early retired employees from the date of stopping providing services
to the date of normal retirement are included into the current profits and losses (termination benefits) if the recognition conditions
of estimated liabilities are met.
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25. Estimated liabilities
If the obligation related to contingencies satisfies the following conditions at the same time, it shall be recognized as the
estimated liabilities: ① This obligation is the current obligation undertaken by Supor; 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 optimal estimate of the expenditure required to perform the relevant
current obligations. In case of having a great effect on time value of currency, estimated liabilities shall be confirmed based on the
amount after discounting of estimated future cash flow of assets. When confirming the optimal estimate, Supor gave
comprehensive considerations to risks related to contingencies, uncertainty, time value of money and other factors. 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.
Supor rechecked the book value of the estimated liabilities on the balance sheet date and adjusted the book value based on the
current optimal 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 confirmation 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 is 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 Supor 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
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 included into the 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.
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On each balance sheet date during the waiting period, Supor 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 included into the 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 included into the 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 Supor 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 Supor 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 included into the 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 included into the current profits and losses.
(2) Accounting treatment related to the modification and termination of share-based payment plan
When Supor 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
Supor cancels some or all of the equity instruments granted.
During the waiting period, if the granted equity instrument is cancelled, Supor will cancel the granted equity instrument as an
accelerated exercise, and the amount to be recognized in the remaining waiting period will be immediately included into the
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, Supor will treat it as a cancellation of the equity
instrument.
(3) Accounting treatment of the share-based payment transactions involving Supor and the shareholders or actual
controllers of the Company
For share-based payment transaction involving Supor or the Company's shareholders or actual controller, if either settlement
enterprise or enterprise accepting service is inside Supor or outside Supor, the accounting treatment shall be conducted in the
consolidated financial statements of Supor 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 service enterprise, it shall be recognized as the long-term equity investment of the
service enterprise 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.
-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
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payment. If the enterprise accepting service has a settlement obligation and the equity instruments granted to the enterprise
employees are not 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 Supor, if the acceptance services enterprise 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 acceptance service enterprise and the settlement enterprise shall be compared with the above
principles.
27. Revenue
Disclosure of the accounting policies adopted for revenue recognition and measurement by business type
Revenue is the total inflow of economic benefits that Supor 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 Supor 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 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 Supor; the consideration that Supor 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, Supor 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 consideration payable will be offset by the transaction price, and the current
revenue will be offset at the later point of recognition of the relevant revenue and payment (or promised) of the customer's
consideration, except for obtaining other products that can be clearly distinguished.
For contracts with quality assurance clauses, Supor 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,
Supor regards it as a single performance obligation.
Transaction price is the consideration amount Supor 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 Supor 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, Supor 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 Supor fulfills the
performance obligation; the customer manages to control the commodities in process while Supor fulfills the performance
obligation. Commodities produced during the performance period have irreplaceable purposes and Supor 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 cannot be confirmed reasonably, if it is predicted that the incurred cost of Supor 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, Supor 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
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the customer has obtained the control right of the commodity, Supor 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 clauses, when customers obtain control over related commodities, Supor 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, Supor re-estimates the future sales returns, and if there
is any change, it will be treated as a change in accounting estimates.
Supor's selling of commodities such as cookware and small domestic appliance 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, Supor mainly recognizes the control over commodity as having been transferred
to the customer and recognizes relevant commodity revenue when such commodity has left Supor'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.
Situation where similar businesses adopt different business models and involve different revenue recognition methods and
measurement methods
28. Contract cost
The incremental cost incurred by Supor 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 included into the
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 Supor'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 included into current profits and losses.
Where the book value of assets related to contract costs is higher than the difference between the following two items, Supor
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
Supor;
- 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 Supor 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 Supor 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 included into the 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 included into the current profits and
losses.
When Supor 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 Supor and the grant.
If the government subsidies concerning assets are recognized as deferred incomes and are included into the 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 included into the
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 included into the 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 Supor shall be included into other incomes, or used to offset the relevant
costs according to the economic business nature. Government subsidies not concerning daily activities will be included into the
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 included into the current profits and losses; In
other circumstances, they shall be included into the current profits and losses directly.
30. Deferred income tax assets/deferred income tax liabilities
(1) Current income taxes
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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 and 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 Supor 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, Supor shall recognize all other
deferred income tax liabilities incurred in the taxable temporary differences.
For taxable temporary differences and deductible temporary differences related to the initial recognition of assets or liabilities
arising from individual transactions that are neither enterprise merger nor affect accounting profits and taxable income (or
deductible losses) at the time of occurrence, the relevant deferred income tax liabilities and deferred income tax assets shall be
recognized separately. 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, Supor 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 included into the 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 included into other comprehensive incomes or shareholders' equities.
(4) Offset of income tax
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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 Supor 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 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, Supor'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.
Supor 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, Supor 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) Supor as the lessee
At the beginning date of the lease term, Supor 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.
Supor 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 Supor 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".
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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 Supor shall be adopted as the discount rate.
Supor calculates the interest expense of the lease obligation for each period of the lease term at a fixed periodic interest rate,
which is included into the current profits and losses or relevant asset costs. The variable lease payment not included into the
measurement of lease obligations will be included into the 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, Supor will remeasure lease obligations at
the present value of the lease payment after any change:
- 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 Supor'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, Supor 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, Supor will
include the remaining amount in the current profits and losses.
Supor 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 (individual leased assets have a lower value when they are brand new) as well as includes
related lease payment into the current profits and losses or relevant asset costs in each period within the lease term pursuant to the
straight-line method.
(2) Supor as the lessor
At the beginning date of the lease term, Supor 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.
Supor, 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 Supor chooses to apply the simplified
treatment of the above short-term lease to the original lease, then Supor classifies the sublease as an operating lease.
Under financing leases, at the beginning date of the lease term, Supor confirms financing lease receivables for financing lease
and derecognizes the financial leasing assets. Supor 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 interest rate implicit in the lease term.
Supor 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 included
into the net lease investment shall be included into 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. Supor 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 included into the lease receipt shall be included into current profits and losses when it actually occurs.
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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 Supor 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 reporting
Please refer to Note XVIII. "1. Segment information" for details of accounting policies related to segment reporting.
34. Other important accounting policies and estimates
(1) Repurchased shares
If Supor reduces its capital by acquiring the stocks of the Company with approval, then it shall reduce share captial 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
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 added with capital reserve (share capital premium).
Shares repurchased by Supor 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 cost shall increase capital reserve (share capital premium); the
part lower than their cost shall write down capital reserve (share capital premium), surplus reserve and undistributed profit in
sequence.
If Supor 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 a 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. Supor 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 a market participant is
an orderly transaction under current market conditions; supposes the orderly selling of assets or transfer of liabilities is 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. Supor adopts the assumptions that market participants use to maximize their
economic benefits when they price assets or liabilities.
Supor 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
included into the current profits and losses, unless otherwise specified by relevant accounting standards.
Supor 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 Supor 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 input values are the quotations of same assets or liabilities that can be
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obtained on the measurement date and are not adjusted in the active market; second-level input values are the direct or indirect
observable input values of relevant assets or liabilities other than the first-level input values; third-level input values are the
unobservable input values of relevant assets or liabilities.
Supor measures non-financial assets with fair value, considers market participant's ability to use them in the best way to generate
economic benefits, or the ability to sell assets to other market participants who can use them in the best way to generate economic
benefits. To measure a liability with fair value, it is supposed that 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, it is supposed that this equity instrument is transferred to other market
participants on the measurement date, and further exits after transfer, and the market participant, as the transferee, obtains relevant
rights to this instrument and undertakes corresponding obligations.
35. Change of important accounting policies and estimates
(1) Change of important accounting policies
□ Applicable Not-applicable
(2) Change of important accounting estimates
□ Applicable Not-applicable
(3) Adjustment of related items in the financial statements at the beginning of the year from 2024 following the first
implementation of the New Accounting Standards
□ Applicable Not-applicable
VI. Taxes
1. Main taxes and tax rates
Tax Tax base Tax rate
Taxable income is calculated at output tax rates of 0,
The taxable revenue from sales of 6%, 9%, and 13%, and VAT is calculated based on the
VAT
commodities or rendering of services difference after deducting the input tax allowable for
the current period.
Urban maintenance and
VAT payable 7%
construction tax
The 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 Marketing are taxed at
Enterprise income tax Taxable income
a preferential tax rate of 20%; for overseas subsidiaries,
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;
Housing property tax 1.2%, 12%
for 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 passed the hi-tech enterprise qualification in
2022 and is entitled to enjoy the preferential 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 2024.
According to the Announcement of the Ministry of Finance and the State Administration of Taxation on the Preferential Policies
for Income Tax of Small and Micro Enterprises and Individual Businesses (Announcement No. 6 of 2023), the portion of the
annual taxable income of small and micro profit enterprises that does not exceed RMB 1 million shall be reduced by 25% and
included in the taxable income, and enterprise income tax shall be paid at a tax rate of 20% from January 1, 2023 to December 31,
2024. At the same time, 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, the part of the annual taxable income of small and micro enterprises that exceeds RMB 1 million, but
does not exceed RMB 3 million will be included into the taxable income at a reduced rate of 25%, and the enterprise income tax
will be paid at a tax rate of 20%. Wuhan Recycling and Shanghai Marketing meet the criteria for small low-profit enterprises in
2024, so the preferential tax rate of 20% is applicable in 2024.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Item Closing balance Opening balance
Cash on hand 61,768.13 62,594.14
Cash in bank 1,679,560,812.34 2,964,417,369.53
Other monetary capitals 314,472,379.78 583,797,478.77
Total 1,994,094,960.25 3,548,277,442.44
Including: deposits overseas 39,811,870.33 61,122,895.90
Other remarks
1) As of June 30, 2024, there was no frozen bank account balances related to the subsidiaries that have not been cancelled (December
31, 2023: RMB 30,423.72). The total bank deposits of RMB 1,679,560,812.34 are all unrestricted, with RMB 52,256,164.38 being
held in term deposit with a maturity of more than three months.
2) As at June 30, 2024, other monetary capitals at the end of the period included RMB 214,338,000.00 (December 31, 2023: RMB
476,860,000.00) of the security for restricted acceptance bills, RMB 929,102.94 (December 31, 2023: RMB 613,739.88) of the
security for e-commerce platforms, RMB 58,000,000.00 (December 31, 2023: RMB 58,000,000.00) of the security for the deposits
of the advance payment financing business, and RMB 41,205,276.84 (December 31, 2023: RMB 48,323,738.89) of the non-restricted
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currency funds of the Alipay wallet, JD wallet, TikTok wallet, securities settlement accounts, futures settlement accounts and Youzan
account, etc.
3) As of June 30, 2024, the monetary capital held by Supor in Vietnam totaled RMB 23,621,105.52 (December 31, 2023: equivalent
to RMB 44,335,548.85); the monetary capital deposited in Singapore amounted to RMB 4,479,966.21 (December 31, 2023:
amounted to RMB 4,491,068.45); The monetary capital held in Indonesia totaled RMB 11,710,798.60 (December 31, 2023:
equivalent to RMB 12,296,278.60).
2. Transactional financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets measured at the fair value with their changes
180,164,631.01 351,137,787.54
included into the current profits and losses.
Including:
- Short-term financial products 180,164,631.01 351,137,787.54
Total 180,164,631.01 351,137,787.54
Other remarks
As at June 30, 2024, the financial assets measured at the fair value with their changes included into the current profits and losses
are the financial products purchased by Supor, amounting to RMB 180,000,000.00 (December 31, 2023: RMB 350,000,000.00).
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 164,631.01 (December 31, 2023: RMB 1,137,787.54), were 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 11,404,422.19 15,311,935.98
Total 11,404,422.19 15,311,935.98
(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
Notes receivable for
provision for bad debts
11,404,422.19 100.00% 11,404,422.19 15,311,935.98 100.00% 15,311,935.98
made on the basis of
portfolio
Including:
Portfolio: bank 11,404,422.19 100.00% 11,404,422.19 15,311,935.98 100.00% 15,311,935.98
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acceptance bill
Total 11,404,422.19 100.00% 11,404,422.19 15,311,935.98 100.00% 15,311,935.98
If provision for bad debts for notes receivable is made based on the general model of expected credit losses:
□ Applicable Not-applicable
(3) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Opening
Categories Collected or Closing balance
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 June 30, 2024, Supor had no notes receivable pledged (December 31, 2023: 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 11,404,422.19
Total 11,404,422.19
(6) Other explanations
By June 30, 2024, Supor's undue and endorsed notes receivable of RMB 11,404,422.19 (December 31, 2023, RMB 10,761,655.33)
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.
(7) 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 June 30, 2024, Supor had no notes transferred to accounts receivable due to non-performance of drawers. (December 31,
2023: None)
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4. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (including 1 year) 3,394,275,461.34 2,956,340,005.74
1-2 years 7,831,263.08 7,090,033.51
2-3 years 286,541.82 1,283,949.52
Over 3 years 1,214,507.57 880,404.97
3-4 years 385,517.40 127,479.68
4-5 years 149,712.81 96,637.91
Over 5 years 679,277.36 656,287.38
Total 3,403,607,773.81 2,965,594,393.74
(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 made 195,920.38 0.01% 195,920.38 100.00% 195,920.38 0.01% 195,920.38 100.00%
on an individual
basis
Accounts
receivable for
provision for 3,403,411,853. 3,279,868,209. 2,965,398,473. 2,858,247,356.
99.99% 123,543,643.63 3.63% 99.99% 107,151,117.33 3.61%
bad debts made 43 80 36 03
on the basis of
portfolio
Including:
Portfolio 1: age 3,338,169,286. 3,214,690,885. 2,843,635,733. 2,736,606,378.
98.07% 123,478,401.06 3.70% 95.89% 107,029,354.59 3.76%
portfolio 96 90 09 50
Portfolio 2:
low-risk 65,242,566.47 1.92% 65,242.57 0.10% 65,177,323.90 121,762,740.27 4.10% 121,762.74 0.10% 121,640,977.53
portfolio
3,403,607,773. 3,279,868,209. 2,965,594,393. 2,858,247,356.
Total 100.00% 123,739,564.01 3.64% 100.00% 107,347,037.71 3.62%
81 80 74 03
Provision for bad debts made on an individual basis: RMB 195,920.38
Unit: RMB
Opening balance Closing balance
Name Book Book Provision
Provision Provision
Reasons
balance for bad balance for bad proportion
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debts debts
It is not expected to be recovered, so
Customers A 41,463.78 41,463.78 41,463.78 41,463.78 100.00% the provision for bad debts is fully
accrued.
It is not expected to be recovered, so
Customer B 75,662.72 75,662.72 75,662.72 75,662.72 100.00% the provision for bad debts is fully
accrued.
It is not expected to be recovered, so
Customer C 78,793.88 78,793.88 78,793.88 78,793.88 100.00% the provision for bad debts is fully
accrued.
Total 195,920.38 195,920.38 195,920.38 195,920.38
The number of categories for provision for bad debts by portfolio: Portfolio 1
Provision for bad debts made on the basis of portfolio: RMB 123,478,401.06
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (including 1
3,329,032,894.87 121,965,807.66 3.66%
year)
1-2 years (including 2 years) 7,831,263.08 626,501.05 8.00%
2-3 years (including 3 years) 286,541.82 42,981.27 15.00%
3-4 years (including 4 years) 350,598.68 175,299.34 50.00%
4-5 years (including 5 years) 827.30 661.84 80.00%
Over 5 years 667,161.21 667,149.90 100.00%
Total 3,338,169,286.96 123,478,401.06
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 provision for bad debts for accounts receivable is made based on the general model of expected credit losses:
□ Applicable Not-applicable
(3) Provisions 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 107,347,037.71 16,636,225.12 -48,398.00 -195,300.82 123,739,564.01
receivable
Total 107,347,037.71 16,636,225.12 -48,398.00 -195,300.82 123,739,564.01
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Decreased provision for bad debts of RMB 195,300.82 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 48,398.00
Including significant accounts receivable written off:
None
(5) Accounts receivable and contract assets details of the top 5 closing balances by debtors
Unit: RMB
Provision for bad
Closing Proportion to the
debts for accounts
Closing balance of total closing
receivable and
Closing balance of balance of accounts balance of
Entity name closing balance of
accounts receivable contract receivable accounts
contract asset
assets and contract receivable and
impairment
assets contract assets
provision
SEB S.A. and its affiliates 2,220,687,352.01 65.25% 66,622,394.08
Customer D 509,646,342.58 14.97% 25,549,572.16
Customer E 60,936,942.51 1.79% 3,046,847.13
Customer F 53,451,863.60 1.57% 2,672,593.18
Customer G 44,478,402.77 1.31% 44,478.40
Total 2,889,200,903.47 84.89% 97,935,884.95
5. Receivables financing
(1) Presentation of receivables financing in classification
Unit: RMB
Item Closing balance Opening balance
Notes receivable 193,637,531.38 363,532,765.35
Total 193,637,531.38 363,532,765.35
Other remarks:
Supor 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, Supor 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
classified into financial assets measured at the fair value with their changes included into other comprehensive incomes, and
presented as receivables financing.
As of June 30, 2024, Supor had no receivables financing pledged (December 31, 2023: None).
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(3) Endorsed or discounted receivables financing undue at the balance sheet date at the end of the year of
the Company
Unit: RMB
Closing balance not
Item Closing balance derecognized
derecognized
Bank acceptance bill 3,286,653,789.20
Total 3,286,653,789.20
Other remarks
In order to settle part of the payables, Supor endorses the equal amount of undue notes receivable to the suppliers, and the
management of Supor 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 Supor for the continued
involvement therein is the amount of the undue notes receivable endorsed by Supor 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 20,572,845.75 16,126,721.38
Total 20,572,845.75 16,126,721.38
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 12,869,641.99 11,391,814.36
Temporary payment receivable 9,880,974.30 6,972,323.05
Personal deposit 1,648,978.13 1,457,137.01
Tax refund receivable 1,384,648.84 996,927.07
Total 25,784,243.26 20,818,201.49
2) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (including 1 year) 15,218,293.78 12,043,858.73
1-2 years 5,242,662.86 3,460,785.69
2-3 years 2,320,543.24 2,570,919.30
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Over 3 years 3,002,743.38 2,742,637.77
3-4 years 480,555.89 688,905.05
4-5 years 695,223.15 251,762.10
Over 5 years 1,826,964.34 1,801,970.62
Total 25,784,243.26 20,818,201.49
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
Accounts receivable for
provision made on an 1,190,578.89 4.62% 1,190,578.89 100.00% 0.00 1,190,578.89 5.72% 1,190,578.89 100.00%
individual basis
Notes receivable for
provision for bad debts
24,593,664.37 95.38% 4,020,818.62 16.35% 20,572,845.75 19,627,622.60 94.28% 3,500,901.22 17.84% 16,126,721.38
made on the basis of
portfolio
Including:
Portfolio 1: age
23,209,015.46 90.01% 4,020,818.62 17.32% 19,188,196.84 18,630,695.53 89.49% 3,500,901.22 18.79% 15,129,794.31
portfolio
Portfolio 2: low-risk
1,384,648.91 5.37% 0.00% 1,384,648.91 996,927.07 4.79% 996,927.07
portfolio
Total 25,784,243.26 100.00% 5,211,397.51 20.21% 20,572,845.75 20,818,201.49 100.00% 4,691,480.11 22.54% 16,126,721.38
Accounts receivable for provision made on an individual basis: RMB 1,190,578.89
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, so the
Customer H 1,187,578.89 1,187,578.89 1,187,578.89 1,187,578.89 100.00%
provision for bad debts is fully accrued.
It is not expected to be recovered, so the
Customer I 3,000.00 3,000.00 3,000.00 3,000.00 100.00%
provision for bad debts is fully accrued.
Total 1,190,578.89 1,190,578.89 1,190,578.89 1,190,578.89
The number of categories for provision for bad debts by portfolio: Portfolio 1
Provision for bad debts made on the basis of portfolio: RMB 4,020,818.62
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year
12,646,065.98 632,303.29 5.00%
(including 1 year)
1-2 years 5,242,662.86 419,413.03 8.00%
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
2-3 years 2,320,543.24 348,081.49 15.00%
3-4 years 480,555.89 240,277.95 50.00%
4-5 years 692,223.15 553,778.52 80.00%
Over 5 years 1,826,964.34 1,826,964.34 100.00%
Total 23,209,015.46 4,020,818.62
Provision for bad debts based on the general model of expected credit losses
Unit: RMB
Phase I Phase II Phase III
Provision for bad debts Expected credit loss in the Expected credit loss Total
Expected credit loss
entire duration (without in the entire duration
in future 12 months
credit impairment) (credit impairment)
Balance on January 1, 2024 3,500,901.22 1,190,578.89 4,691,480.11
Balance on January 1, 2024 in the
current period
Withdrawal in the current period 526,107.52 526,107.52
Other changes -6,190.12 -6,190.12
Balance on June 30, 2024 4,020,818.62 1,190,578.89 5,211,397.51
Other remarks:
Decreased provision for bad debts of RMB 6,190.12 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) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Opening
Categories Collected or Write-off or Closing balance
balance Accrued Others
reversed charge-off
Provision for bad
debts of other 4,691,480.11 526,107.52 -6,190.12 5,211,397.51
receivables
Total 4,691,480.11 526,107.52 -6,190.12 5,211,397.51
5) Other receivables details of the top 5 closing balances by debtors
Unit: RMB
Proportion in the Closing balance
Closing
Entity name Nature of receivables Ages total closing balance of provision for
balance
of other receivables bad debts
Customer J Deposit as security 1,681,500.00 Within 1 year 6.52% 84,075.00
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Deposit as security/ Within 1 year,
Customer K 1,438,619.81 5.58% 346,130.99
receivable suspense debits 1-5 years
Tax refund receivable Tax refund receivable 1,384,648.84 Within 1 year 5.37%
Temporary payment
Customer H 1,187,578.89 Within 1 year 4.61% 1,187,578.89
receivable
Customer L Deposit as security 1,180,000.00 2-3 years 4.58% 177,000.00
Total 6,872,347.54 26.66% 1,794,784.88
7. Advance payment
(1) Listing by ages
Unit: RMB
Closing balance Opening balance
Ages
Amount Proportion Amount Proportion
Within 1 year 200,162,743.25 98.46% 190,478,767.90 98.61%
1-2 years 2,804,428.10 1.38% 2,453,401.67 1.27%
2-3 years 222,369.71 0.11% 123,148.33 0.06%
Over 3 years 108,335.16 0.05% 114,137.61 0.06%
Total 203,297,876.22 193,169,455.51
(2) Advance payment of the top 5 closing balances by prepayment objects
Unit: RMB
Proportion in the balance of
Entity name Book balance
advance payment (%)
Supplier A 28,414,994.72 13.98%
Supplier B 22,123,718.16 10.88%
Supplier C 17,230,675.03 8.48%
Supplier D 15,511,139.21 7.63%
Supplier E 15,336,851.10 7.54%
Subtotal 98,617,378.22 48.51%
Other remarks:
Aging was calculated from the date of confirmation of advance payment.
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
(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 365,862,802.61 8,169,333.16 357,693,469.45 339,021,663.87 8,468,573.73 330,553,090.14
Unfinished
100,949,101.51 100,949,101.51 93,073,750.61 93,073,750.61
products
Finished products 1,445,573,473.78 16,700,576.12 1,428,872,897.66 1,739,751,597.38 16,482,797.36 1,723,268,800.02
Low value
95,005,347.52 1,620.00 95,003,727.52 108,345,465.67 82,857.41 108,262,608.26
consumables
Packing materials 9,336,113.52 9,336,113.52 7,525,138.28 7,525,138.28
Total 2,016,726,838.94 24,871,529.28 1,991,855,309.66 2,287,717,615.81 25,034,228.50 2,262,683,387.31
(2) Inventory depreciation reserves and impairment provision for contract performance cost
Unit: RMB
Increase Decrease
Item Opening balance Reversal or Closing balance
Accrued Others Others
write-off
Raw materials 8,468,573.73 1,635,552.00 1,823,673.62 111,118.95 8,169,333.16
Finished
16,482,797.36 4,780,709.33 4,551,867.69 11,062.88 16,700,576.12
products
Low value
82,857.41 81,237.41 1,620.00
consumables
Total 25,034,228.50 6,416,261.33 6,456,778.72 122,181.83 24,871,529.28
Other changes include a decrease in the conversion difference of foreign currency statements due to change in exchange rate,
resulting in a reduction of RMB 111,118.95 in the inventory depreciation reserve for raw materials and a reduction of RMB
11,062.88 in the inventory write-down provision for finished product.
Unit: RMB
End of this reporting period Beginning of this reporting period
Falling Falling
Portfolio name Falling price price Falling price price
Closing balance Opening balance
reserve provision reserve provision
ratio ratio
Raw materials 365,862,802.61 8,169,333.16 2.23% 339,021,663.87 8,468,573.73 2.50%
Finished
1,445,573,473.78 16,700,576.12 1.16% 1,739,751,597.38 16,482,797.36 0.95%
products
Low value
95,005,347.52 1,620.00 0.00% 108,345,465.67 82,857.41 0.08%
consumables
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Total 1,906,441,623.91 24,871,529.28 2,187,118,726.92 25,034,228.50
9. Non-current assets due within one year
Unit: RMB
Item Closing balance Opening balance
Other debt investments due within one
485,691,958.90 285,783,958.92
year
Total 485,691,958.90 285,783,958.92
(1) Debt investment due within one year
□ Applicable Not-applicable
(2) Other debt investment due within one year
Applicable □ Not-applicable
(1) Other debt investment due within one year
Unit: RMB
Impairment
Fair value provision that
changes Accumulated are cumulatively
Opening Accrued Interest
Item in the Closing balance Cost fair value determined in Remarks
balance interest adjustment
current changes other
period comprehensive
incomes
Negotiable
certificates 285,783,958.92 35,775,229.55 -83,270.65 485,691,958.90 450,000,000.00
of deposit
Total 285,783,958.92 35,775,229.55 -83,270.65 485,691,958.90 450,000,000.00
(2) Other important debt investment due within one year at the end of the period
Unit: RMB
Closing balance Opening balance
Other creditors' rights
Overdue
items Effective Overdue Effective
Face value Coupon rate Expiry date Face value Coupon rate Expiry date principa
interest rate principal interest rate
l
Shaoxing Supor
Housewares - China
200,000,000.0 April 21,
Guangfa Bank 3.55% 3.43%
0 2025
negotiable
certificates of deposit
Shaoxing Supor -
Bank of China 140,000,000.0 March 3,
3.35% 3.32%
negotiable 0 2025
certificates of deposit
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
340,000,000.0
Total
0
10. Other current assets
Unit: RMB
Item Closing balance Opening balance
Return cost receivable 12,589,289.98 15,285,358.91
Creditable VAT 120,906,931.29 111,403,625.69
Others 2,648,916.37 15,734,711.62
Total 136,145,137.64 142,423,696.22
11. Other debt investments
(1) Other debt investment
Unit: RMB
Fair value Impairment provision that
Accumulated
Accrued Interest changes in are cumulatively
Item Opening balance Closing balance Cost fair value Remarks
interest adjustment the current determined in other
changes
period comprehensive incomes
Negotiable certificates
951,306,342.48 45,340,134.05 -211,353.25 715,128,780.80 670,000,000.00
of deposit
Minus: Part due within
-285,783,958.92 -35,775,229.55 83,270.65 -485,691,958.90 -450,000,000.00
one year
Total 665,522,383.56 9,564,904.50 -128,082.60 229,436,821.90 220,000,000.00
(2) Other important debt investment at the end of the period
Unit: RMB
Closing balance Opening balance
Other creditors'
Overdue
rights items Effective Overdue Effective
Face value Coupon rate Expiry date Face value Coupon rate Expiry date principa
interest rate principal interest rate
l
Shaoxing Supor
Housewares - China
Guangfa Bank
200,000,000.00 3.55% 3.43% April 21, 2025
negotiable
certificates of
deposit
Shaoxing Supor -
Bank of China
negotiable 140,000,000.00 3.35% 3.32% March 3, 2025
certificates of
deposit
Total 340,000,000.00
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
12 Long-term equity investment
Unit: RMB
Opening Increase/decrease
balance Closing
Closing
Opening balance of Investm Adjustment balance of
Invested unit Investme Investment profit Cash dividend/ Accrued balance (book
(book value) impairme ent in other Changes in impairmen
nt or loss recognized profit declared impairment Others value)
nt decrease comprehens other equity t provision
increased by equity method for distribution provision
provision d ive income
I. Joint Venture
II. Associated Enterprise
Wuhan Anzai
Cookware Co., 61,678,984.35 -720,742.08 60,958,242.27
Ltd.
Subtotal 61,678,984.35 -720,742.08 60,958,242.27
Total 61,678,984.35 -720,742.08 60,958,242.27
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable Not-applicable
The recoverable amount is determined based on 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 1,188,793,243.58 1,243,210,689.64
Total 1,188,793,243.58 1,243,210,689.64
(1) Fixed assets
Unit: RMB
Buildings and General Special Transport
Item Total
structures equipment equipment facilities
I. Original Book Value:
1. Opening balance 1,234,240,411.28 295,292,863.08 965,149,950.66 34,174,160.70 2,528,857,385.72
2. Increase 498,215.19 5,424,266.23 13,422,507.02 800,753.79 20,145,742.23
(1) Acquisition 498,215.19 5,371,600.75 11,837,175.96 800,753.79 18,507,745.69
(2) Transferred in from
52,665.48 1,585,331.06 1,637,996.54
construction in progress
(3) Increase from
enterprise merger
3. Decrease 5,225,257.22 2,471,548.70 9,795,996.63 822,781.52 18,315,584.07
(1) Disposal or scrapping 5,225,257.22 2,471,548.70 9,795,996.63 822,781.52 18,315,584.07
(2) Transfer into
construction in progress
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4. Impact of change in exchange
-1,267,429.39 -319,985.31 -2,637,534.23 -108,330.17 -4,333,279.10
rate
5. Closing balance 1,228,245,939.86 297,925,595.30 966,138,926.82 34,043,802.80 2,526,354,264.78
II. Accumulated Depreciation
1. Opening balance 417,002,264.73 223,951,178.16 617,795,971.50 26,593,506.97 1,285,342,921.36
2. Increase 22,334,478.25 12,886,972.39 28,565,485.82 1,362,452.83 65,149,389.29
(1) Provision 22,334,478.25 12,886,972.39 28,565,485.82 1,362,452.83 65,149,389.29
3. Decrease 2,399,849.72 7,843,868.57 794,938.70 11,038,656.99
(1) Disposal or scrapping 2,399,849.72 7,843,868.57 794,938.70 11,038,656.99
(2) Transfer into
construction in progress
4. Impact of change in exchange
-476,769.16 -225,560.70 -1,308,494.50 -93,565.40 -2,104,389.76
rate
5. Closing balance 438,859,973.82 234,212,740.13 637,209,094.25 27,067,455.70 1,337,349,263.90
III. Impairment Provision
1. Opening balance 303,774.72 303,774.72
2. Increase
(1) Provision
3. Decrease 92,017.42 92,017.42
(1) Disposal or scrapping 92,017.42 92,017.42
4. Closing balance 211,757.30 211,757.30
IV. Book Value
1. Closing book value 789,385,966.04 63,501,097.87 328,929,832.57 6,976,347.10 1,188,793,243.58
2. Opening book value 817,238,146.55 71,037,910.20 347,353,979.16 7,580,653.73 1,243,210,689.64
(2) Fixed assets with certificate of titles unsettled
Unit: RMB
Item Book value Reasons for unsettlement
After all projects were completed, and the completion and
Function dormitory of Shaoxing Supor 32,996,799.93 settlement procedures were fulfilled, the property ownership
certificate shall be processed uniformly
After all projects were completed, and the completion and
No.3 plant of Shaoxing Supor 24,519,224.27 settlement procedures were fulfilled, the property ownership
certificate shall be processed uniformly
After all projects were completed, and the completion and
No.1 plant of Shaoxing Supor 22,816,586.33 settlement procedures were fulfilled, the property ownership
certificate shall be processed uniformly
After all projects were completed, and the completion and
No.8 plant of Shaoxing Supor 27,145,967.17 settlement procedures were fulfilled, the property ownership
certificate shall be processed uniformly
After all projects were completed, and the completion and
Function cafeteria of Shaoxing Supor 8,882,114.61 settlement procedures were fulfilled, the property ownership
certificate shall be processed uniformly
After all projects were completed, and the completion and
No.12 plant of Shaoxing Supor 11,598,731.60
settlement procedures were fulfilled, the property ownership
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
certificate shall be processed uniformly
After all projects were completed, and the completion and
Transformer substation (35 kV) of
1,075,101.61 settlement procedures were fulfilled, the property ownership
Shaoxing Supor
certificate shall be processed uniformly
After all projects were completed, and the completion and
No.13 plant of Shaoxing Supor 15,121,149.93 settlement procedures were fulfilled, the property ownership
certificate shall be processed uniformly
After all projects were completed, and the completion and
No.14 plant of Shaoxing Supor 23,071,838.57 settlement procedures were fulfilled, the property ownership
certificate shall be processed uniformly
After all projects were completed, and the completion and
No.15 plant of Shaoxing Supor 40,089,807.44 settlement procedures were fulfilled, the property ownership
certificate shall be processed uniformly
After all projects were completed, and the completion and
Forklift charging room of Shaoxing
820,828.61 settlement procedures were fulfilled, the property ownership
Supor
certificate shall be processed uniformly
After all projects were completed, and the completion and
No.13-B warehouse project of
13,013,916.14 settlement procedures were fulfilled, the property ownership
Shaoxing Supor
certificate shall be processed uniformly
Transfer procedures of land use right certificate were not
Generator room of P&R Products 713.89
settled due to land ownership issue
Water pump building and structures of Transfer procedures of land use right certificate were not
64,731.52
P&R Products settled due to land ownership issue
Extended plant for bakelite workshop Transfer procedures of land use right certificate were not
142,879.43
of P&R Products settled due to land ownership issue
Transfer procedures of land use right certificate were not
Polishing workshop of P&R Products 72,000.00
settled due to land ownership issue
Total 221,432,391.05
14. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 69,151,667.36 26,862,380.61
Total 69,151,667.36 26,862,380.61
(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
Shaoxing Supor Fire-fighting
60,377,948.32 60,377,948.32 20,185,019.07 20,185,019.07
Modification Project
Piecemeal projects 6,168,464.76 6,168,464.76 5,844,384.84 5,844,384.84
Equipment payment 2,605,254.28 2,605,254.28 832,976.70 832,976.70
Total 69,151,667.36 69,151,667.36 26,862,380.61 26,862,380.61
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
(2) Impairment test of 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 342,434,143.81 3,283,631.77 345,717,775.58
2. Increase 14,233,468.47 14,233,468.47
3. Decrease 15,293,432.74 15,293,432.74
4. Impact of change in
-51,503.77 -104,543.94 -156,047.71
exchange rate
5. Closing balance 341,322,675.77 3,179,087.83 344,501,763.60
II. Accumulated Depreciation
1. Opening balance 121,901,162.50 313,039.94 122,214,202.44
2. Increase 24,491,558.39 44,241.06 24,535,799.45
(1) Provision 24,491,558.39 44,241.06 24,535,799.45
3. Decrease 5,092,699.49 5,092,699.49
(1) Disposal 5,092,699.49 5,092,699.49
4. Impact of change in
-12,198.68 -7,565.49 -19,764.17
exchange rate
5. Closing balance 141,287,822.72 349,715.51 141,637,538.23
III. Impairment Provision
IV. Book Value
1. Closing book value 200,034,853.05 2,829,372.32 202,864,225.37
2. Opening book value 220,532,981.31 2,970,591.83 223,503,573.14
(2) Impairment test of right-of-use assets
□ Applicable Not-applicable
16. Intangible assets
(1) Details
Unit: RMB
Trademark use Pollutant
Item Land use right Software Total
right discharge right
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
I. Original Book Value:
1. Opening balance 474,966,791.54 47,328,811.32 102,286,810.21 9,894,760.97 634,477,174.04
2. Increase 1,879,957.66 1,879,957.66
(1) Acquisition 1,879,957.66 1,879,957.66
(2) In-house R&D
(3) Increase from
enterprise merger
3. Decrease
(1) Disposal
4. Impact of change in
-197,389.75 -35,239.80 -232,629.55
exchange rate
5. Closing balance 474,769,401.79 47,328,811.32 104,131,528.07 9,894,760.97 636,124,502.15
II. Accumulated Amortization
1. Opening balance 108,421,816.13 37,817,999.03 57,279,563.96 1,978,952.20 205,498,331.32
2. Increase 4,986,827.58 2,366,440.57 5,360,591.70 989,476.10 13,703,335.95
(1) Provision 4,986,827.58 2,366,440.57 5,360,591.70 989,476.10 13,703,335.95
3. Decrease
(1) Disposal
4. Impact of change in
-73,990.25 -27,812.03 -101,802.28
exchange rate
5. Closing balance 113,334,653.46 40,184,439.60 62,612,343.63 2,968,428.30 219,099,864.99
III. Impairment Provision
IV. Book Value
1. Closing book value 361,434,748.33 7,144,371.72 41,519,184.44 6,926,332.67 417,024,637.16
2. Opening book value 366,544,975.41 9,510,812.29 45,007,246.25 7,915,808.77 428,978,842.72
At the end of the current period, the proportion of intangible assets formed through internal R&D in the balance of intangible
assets is 0.00%.
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
137,543,096.69 29,238,278.27 121,098,089.15 26,260,667.30
of assets
Profits not realized by
68,893,204.30 16,399,850.27 69,741,065.39 16,436,357.10
internal transaction
Deductible losses 17,360,132.43 4,153,834.04 18,987,969.57 4,474,069.98
Accrued expenses 1,436,527,854.64 344,781,414.90 1,379,497,142.55 331,107,609.67
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Accrued salary 66,894,774.32 16,108,161.05 60,023,338.88 14,699,395.04
Estimated liabilities 6,590,495.50 988,574.33 7,258,295.50 1,088,744.33
Share-based payment 108,762,181.29 24,931,686.43 107,454,470.04 24,615,719.01
Expected returns 8,071,056.53 1,879,760.58 10,173,886.95 2,449,174.32
Lease obligation 205,262,031.17 48,713,356.68 224,849,380.79 53,129,092.96
Total 2,055,904,826.87 487,194,916.55 1,999,083,638.82 474,260,829.71
(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 202,864,225.37 48,121,254.03 223,503,573.14 52,776,659.15
Depreciation of fixed
8,167,774.46 1,225,166.17 8,198,493.05 1,231,924.26
assets
Total 211,031,999.83 49,346,420.20 231,702,066.19 54,008,583.41
(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 after assets or liabilities after
liabilities at the end of liabilities at the
offsetting offsetting
the period beginning of the period
Deferred income tax
49,346,420.20 437,848,496.35 54,008,583.41 420,252,246.30
assets
Deferred income tax
49,346,420.20 54,008,583.41
liabilities
(4) Detail about unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 16,491,151.40 16,278,431.89
Deductible losses 58,800,758.49 56,282,437.20
Total 75,291,909.89 72,560,869.09
(5) Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
Year Closing amount Opening balance Remarks
2024 8,287,689.09 8,287,689.09
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
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 28,065,715.38
2029 2,518,321.29
Total 58,800,758.49 56,282,437.20
18. Assets with title or use right restrictions
Unit: RMB
End of this reporting period Beginning of this reporting period
Item
Restricted
Book balance Book value Restricted situation Book balance Book value Restricted type Restricted situation
type
Monetary Bank acceptance Bank acceptance bill
214,338,000.00 214,338,000.00 Freezing 476,860,000.00 476,860,000.00 Freezing
capital bill security security
Deposit security for Deposit security for
Monetary
58,000,000.00 58,000,000.00 Freezing advance payment 58,000,000.00 58,000,000.00 Freezing advance payment
capital
financing financing
Security and frozen Security and frozen
Monetary
929,102.94 929,102.94 Freezing funds of e- 613,739.88 613,739.88 Freezing funds of e-commerce
capital
commerce platforms platforms
Write off the frozen
Monetary
30,423.72 30,423.72 Freezing amount in the bank
capital
account of the branch
Total 273,267,102.94 273,267,102.94 535,504,163.60 535,504,163.60
19. Short-term loans
(1) Classification of short-term loans
Unit: RMB
Item Closing balance Opening balance
Bank acceptance draft discount 199,065,687.57 199,741,167.36
Total 199,065,687.57 199,741,167.36
Description for classification of short-term borrowings:
There are no overdue and unpaid loans at the end of the period.
20. Notes payable
Unit: RMB
Type Closing balance Opening balance
Bank acceptance bill 1,415,650,000.00 1,235,000,000.00
Total 1,415,650,000.00 1,235,000,000.00
The amount of due unpaid notes payable is RMB 0.00 at the end of the current period.
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
The above balance is the notes payable due within a year.
21. Accounts payable
(1) Details
Unit: RMB
Item Closing balance Opening balance
Goods payment 1,703,439,387.50 1,757,840,901.20
Equipment and engineering funds 39,194,385.14 57,759,242.79
Expenses payment 1,512,169,301.24 1,390,007,709.19
Total 3,254,803,073.88 3,205,607,853.18
Other remarks:
As at June 30, 2024, Supor had no significant accounts payable with an age of more than one year (December 31, 2023: None).
22. Other payables
Unit: RMB
Item Closing balance Opening balance
Other payables 131,222,347.65 147,617,550.27
Total 131,222,347.65 147,617,550.27
(1) Other payables
1) Listing by nature
Unit: RMB
Item Closing balance Opening balance
Deposit as security 101,008,911.15 103,302,075.21
Temporary receipts payable 10,181,764.26 21,367,823.48
Others 20,031,672.24 22,947,651.58
Total 131,222,347.65 147,617,550.27
23. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advances on sales 219,210,138.94 862,706,076.18
Total 219,210,138.94 862,706,076.18
The amount with major changes in its book value during the reporting period and its reasons
Unit: RMB
Item Variation amount Variation reason
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Including the revenue recognized by the amount of book value of contract
Advances on sales -862,706,076.18
liabilities at the beginning of the year
The amount increased due to receipt of cash (excluding the amount recognized as
Advances on sales 219,210,138.94
revenue in the current year)
Total -643,495,937.24
24. Employee remunerations payable
(1) Details
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term Employee
320,212,390.06 894,703,061.80 966,671,800.66 248,243,651.20
Remuneration
II. Post-employment benefits -
10,195,224.02 56,147,452.08 58,149,972.38 8,192,703.72
defined contribution plan
III. Termination Benefit 1,731,091.20 139,690.51 1,089,476.41 781,305.30
Total 332,138,705.28 950,990,204.39 1,025,911,249.45 257,217,660.22
(2) Details of short-term employee remuneration
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus, allowance and
271,284,222.43 793,696,638.74 866,353,400.51 198,627,460.66
subsidy
2. Employee services and benefits 4,179,266.16 35,841,246.83 37,238,051.03 2,782,461.96
3. Social insurance charges 6,741,348.08 27,801,537.80 29,665,310.50 4,877,575.38
Including: Medical insurance
6,331,939.24 24,921,089.63 26,837,124.90 4,415,903.97
premium
Occupational injuries
409,408.84 2,880,448.17 2,828,185.60 461,671.41
premium
4. Housing accumulation fund 104,145.00 23,772,555.46 23,702,341.46 174,359.00
5. Trade union fund and employee
37,903,408.39 13,591,082.97 9,712,697.16 41,781,794.20
education fund
Total 320,212,390.06 894,703,061.80 966,671,800.66 248,243,651.20
(3) Details of defined contribution plan
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic endowment
9,844,178.96 54,348,902.16 56,268,806.00 7,924,275.12
insurance
2. Unemployment
351,045.06 1,798,549.92 1,881,166.38 268,428.60
insurance premium
Total 10,195,224.02 56,147,452.08 58,149,972.38 8,192,703.72
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
25. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT 18,419,481.97 37,895,819.95
Enterprise income tax 135,091,794.72 266,724,688.22
Individual income tax 3,073,721.13 3,461,145.87
Urban maintenance and construction tax 6,255,890.81 9,463,195.64
Housing property tax 5,683,964.52 10,999,275.32
Land use tax 3,477,015.85 6,702,356.51
Stamp tax 4,098,420.05 4,433,184.32
Education surcharge 2,721,861.95 4,057,809.94
Local education surcharge 1,854,650.15 2,725,257.74
Total 180,676,801.15 346,462,733.51
26. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease obligations due within one year 48,284,181.59 47,568,255.43
Total 48,284,181.59 47,568,255.43
27. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Refund payable 20,660,346.49 25,459,245.72
Endorsed bank acceptance bill
11,404,422.19 10,761,655.33
unrecognized
Output tax to be written-off 27,386,925.64 111,431,313.35
Total 59,451,694.32 147,652,214.40
28. Lease obligation
Unit: RMB
Item Closing balance Opening balance
Long-term lease obligations 205,262,031.17 224,849,380.79
Minus: Lease obligations due within one
-48,284,181.59 -47,568,255.43
year
Total 156,977,849.58 177,281,125.36
Other remarks:
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Supor also rents employee dormitories, temporary warehouses, etc. for a lease term up to one year, representing short-term leases.
Supor had chosen not to recognize the right-of-use assets and lease obligations for these leases.
29. Long-term employee remunerations payable
(1) Details
Unit: RMB
Item Closing balance Opening balance
Termination benefit 989,053.39 1,128,743.89
Other long-term welfare 30,431,039.27 14,707,829.27
Total 31,420,092.66 15,836,573.16
30. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Reasons for the balance
For details, please refer to Note XVI.
Pending lawsuit 5,538,727.50 5,538,727.50
"Commitments and Contingencies"
Financial guarantee For details, please refer to Note XVI.
1,051,768.00 1,719,568.00
contract "Commitments and Contingencies"
Total 6,590,495.50 7,258,295.50
31. Share capital
Unit: RMB
Increase/decrease in the period (+, -)
Opening balance New Shares Converted Closing balance
Others Subtotal
shares bonus capital
Total shares 806,708,657.00 -5,150,000.00 -5,150,000.00 801,558,657.00
Other remarks:
The share capital decreased by RMB 5,150,000.00 during this period, due to the cancellation of 5,150,000 shares held in the
Company’s special stock repurchase account to reduce registered capital as authorized by the Annual General Meeting of
Shareholders for 2022 Fiscal Year on April 30, 2024. Following the completion of cancellation, the Company's total capital stock
was reduced from 806,708,657 shares to 801,558,657 shares.
32. Capital reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other capital reserve 173,110,627.02 6,713,320.04 179,823,947.06
Total 173,110,627.02 6,713,320.04 179,823,947.06
Other remarks (including increase and decrease in current period and variation reason):
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
The increase of RMB 6,713,320.04 in other capital reserves in the current period refers to ① the equity-settled share-based
payment amount of RMB 7,273,890.00 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 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 -560,569.96 are directly included into the capital reserve - other capital reserves.
33. Treasury shares
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Treasury share 488,057,333.76 252,904,503.51 235,152,830.25
Total 488,057,333.76 252,904,503.51 235,152,830.25
Other remarks (including increase and decrease in current period and variation reason):
1) The 6th Session of the Eighth Board of Director reviewed and adopted 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
Employees in the first unlock period. The number of Restricted Stock unlocked is 555,750 shares. The corresponding repurchase
obligation of RMB 1 per share has disappeared, leading to a decrease in treasury shares of RMB 555,750 during this period.
2) The 19th Session of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2022 Fiscal Year
reviewed and adopted the Proposal on Public Shares Repurchase Plan. In accordance with the authorization by the Annual General
Meeting of Shareholders for 2022 Fiscal Year, a total of 5,150,000 shares held in the special securities account for repurchases
were cancelled, resulting in a reduction of registered capital by RMB 252,348,753.51.
34. Other comprehensive incomes
Unit: RMB
Amount incurred during this period
Minus: Other Minus: Other
comprehensive comprehensive Minus:
Item Opening balance Current period Attributable to Closing balance
incomes carried incomes carried Income Attributable to parent
cumulative before minority
forward forward tax company
income tax shareholder
transferred to transferred to expenses
profits and losses retained earnings
II. Other
comprehensive
incomes to be -19,176,454.59 -11,517,433.32 -11,161,336.71 -356,096.61 -30,337,791.30
reclassified into the
profit and loss
Conversion
difference in foreign
-19,176,454.59 -11,517,433.32 -11,161,336.71 -356,096.61 -30,337,791.30
currency financial
statement
Total other
comprehensive -19,176,454.59 -11,517,433.32 -11,161,336.71 -356,096.61 -30,337,791.30
income
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
35. Surplus reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
355,939,901.82 7,129,762.06 247,198,753.51 115,870,910.37
reserve
Total 355,939,901.82 7,129,762.06 247,198,753.51 115,870,910.37
Remarks on surplus reserve (including increase and decrease in current period and variation reason):
During this period, the increase in surplus reserve by RMB 7,129,762.06 is the statutory surplus reserve allocated based on 10% of
the net profit realized by the parent company. The decrease in this period is due to the cancellation of 5,150,000 repurchased
shares by the Company. The difference between the payment made for the repurchased shares and their face value are used to
offset the capital reserve - share capital premium, and the insufficient portion is offset against the surplus reserve by RMB
247,198,753.51.
36. Undistributed profits
Unit: RMB
Item Current period Preceding period
Undistributed profits at the end of last period before
5,516,807,622.62 5,865,316,233.53
adjustment
Undistributed profits at period beginning after
5,516,807,622.62 5,865,316,233.53
adjustment
Plus: Net profit attributable to owners of the parent
940,593,117.65 880,618,279.78
company
Minus: withdrawal of statutory surplus reserve 7,129,762.06 11,295,563.32
Common share dividends payable 2,175,512,858.61 2,439,504,228.21
Grant of restricted stocks 3,650,590.00
Undistributed profits at the end of the period 4,274,758,119.60 4,291,484,131.78
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.
2). Due to change of accounting policies, undistributed profit at period beginning was changed by RMB 0.
3). Due to rectification of important accounting errors, undistributed profit at period beginning was changed by RMB 0.
4). Due to change of merger scope resulted from same control, undistributed profit at period beginning was changed by RMB 0.
5). Due to other adjustment, undistributed profit at period beginning was changed by RMB 0.
37. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Main business 10,833,678,971.47 8,176,313,231.14 9,872,392,009.04 7,352,664,336.65
Revenue from other
131,098,996.98 113,197,742.93 110,224,431.69 92,164,920.06
operations
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Total 10,964,777,968.45 8,289,510,974.07 9,982,616,440.73 7,444,829,256.71
Breakdown information of operating income and operating cost:
Unit: RMB
Total
Contract classification
Operating income Operating cost
Business type
Including:
Cookware 2,942,755,534.25 2,148,540,624.99
Electric appliance 7,874,467,595.73 6,016,365,660.90
Others 147,554,838.47 124,604,688.18
Classified by business area
Including:
Domestic 7,509,322,088.47 5,404,596,263.65
Foreign 3,455,455,879.98 2,884,914,710.42
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but
have not been performed or not yet completed is RMB 219,210,138.94, of which RMB 219,210,138.94 is expected to be
recognized as revenue in 2024.
38. Taxes and surcharges
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Urban maintenance and construction tax 25,870,892.88 28,302,388.21
Education surcharge 11,288,326.73 12,198,871.58
Housing property tax 6,149,515.92 6,001,349.28
Land use tax 3,728,691.00 -1,095,848.57
Vehicle and vessel use tax 24,100.31 24,666.40
Stamp tax 8,255,533.64 7,496,718.40
Local education surcharge 7,524,662.67 8,132,580.98
Environmental protection tax 31,738.92 24,982.96
Total 62,873,462.07 61,085,709.24
Other remarks:
See Note VI. "Taxes" for calculating standard of taxes and surcharges.
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39. Administrative expenses
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Employee remuneration 117,480,975.61 116,970,686.38
Office, business traveling and depreciation and
43,702,192.80 38,412,018.68
amortization expenses
Equity incentive and performance incentive fund cost 13,690,850.13 16,286,046.00
Others 19,542,874.84 17,364,037.34
Total 194,416,893.38 189,032,788.40
40. Sales expense
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Advertising, sales promotion, and special gift
876,514,225.41 804,802,932.70
expenses
Employee remuneration 169,866,835.19 186,421,466.63
Office and business traveling expenses 59,870,086.82 69,697,274.57
Equity incentive and performance incentive fund cost 4,283,291.97 5,069,142.00
Others 28,377,220.74 32,409,818.84
Total 1,138,911,660.13 1,098,400,634.74
41. R&D expenses
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Employee remuneration 115,380,914.95 98,660,270.10
Trial production experiment cost and consumption
29,631,031.59 16,372,788.48
expenditure
New product design cost 20,891,202.96 21,374,954.51
Patent and external institutional fees 21,218,726.86 22,692,517.92
Equity incentive and performance incentive fund cost 4,020,047.53 3,635,390.00
Others 13,362,786.32 11,647,881.41
Total 204,504,710.21 174,383,802.42
42. Financial expenses
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Interest expense of loans and accounts payable 2,062,528.25 1,741,376.23
Interest revenue of deposits and receivables -53,980,532.58 -49,382,432.80
Interest expense of lease obligations 5,334,886.69 5,459,272.66
Gain on net foreign exchange -12,870,900.39 -2,424,046.37
Handling fee and other financial expenses 1,989,034.73 2,354,288.69
Total -57,464,983.30 -42,251,541.59
43. Other incomes
(1) Classification of other income
Unit: RMB
Amount incurred during prior
Source of other revenues Amount incurred during this period
period
Government subsidies concerning daily activities 36,756,610.66 29,022,563.56
Refund of handling fee for withholding individual
1,065,897.13 1,188,758.28
income tax
VAT tax plus deduction 2,347,150.52
Total 40,169,658.31 30,211,321.84
(2) Government subsidies concerning daily activities
Unit: RMB
Amount incurred during Amount incurred during
Subsidy item Related to assets/income
this period prior period
Project subsidy 2,428,630.24 1,729,084.60 Related to benefits
Government reward 2,894,000.00 Related to benefits
Tax returns 34,327,980.42 24,399,478.96 Related to benefits
Total 36,756,610.66 29,022,563.56
44. Gains from changes in fair value
Unit: RMB
Amount incurred during prior
Resource for gains from changes in fair value Amount incurred during this period
period
Transactional financial assets 164,631.01 129,103.13
Total 164,631.01 129,103.13
45. Investment income
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Income from long-term equity investments under the
-705,587.15 -460,529.47
equity method
Investment income from disposal of transactional
2,696,040.43 7,170,581.56
financial assets
Investment income from the disposal of other debt
4,108,333.76
investments
Interest from term deposit 5,852,397.27
Investment income of debt investment during the
10,237,780.82 18,450,770.17
holding period
Total 16,336,567.86 31,013,219.53
46. Credit impairment loss
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Bad debt losses for accounts receivable -16,636,225.12 -12,624,888.07
Loss for bad debts of other receivables -526,107.52 -504,792.54
Financial guarantee contract 667,800.00 94,073.72
Total -16,494,532.64 -13,035,606.89
47. Asset impairment loss
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
I. Loss on inventory depreciation and impairment loss
-933,627.88 -5,771,681.15
of contract performance cost
Total -933,627.88 -5,771,681.15
48. Assets disposal income
Unit: RMB
Amount incurred during prior
Source of assets disposal income Amount incurred during this period
period
Gains from disposal of fixed assets -1,406,833.43 -1,528,389.30
Proceeds from the disposal of the right-of-use assets 86,175.43 530,406.83
Total -1,320,658.00 -997,982.47
49. Non-operating incomes
Unit: RMB
Amount included into non-
Amount incurred during Amount incurred during
Item recurring profit or loss of
this period prior period
the current period
Damage and scrapping gains of
139,478.40 157,741.35 139,478.40
non-current assets
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Including: Gains from scrap of
139,478.40 157,741.35 139,478.40
fixed assets
Default fine revenue 1,679,748.01 939,310.46 1,679,748.01
Others 1,871,691.76 592,034.76 1,871,691.76
Total 3,690,918.17 1,689,086.57 3,690,918.17
50. Non-operating expenses
Unit: RMB
Amount included into non-
Amount incurred during Amount incurred during
Item recurring profit or loss of
this period prior period
the current period
Donation expenditures 1,391,041.79 1,162,779.05 1,391,041.79
Damage and scrapping losses of
223,820.63 765,667.84 223,820.63
non-current assets
Including: Losses from scrapping of
223,820.63 765,667.84 223,820.63
fixed assets
Others 793,963.53 315,030.27 793,963.53
Total 2,408,825.95 2,243,477.16 2,408,825.95
51. Income tax expenses
(1) Details
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Current period income tax expenses 249,217,844.53 203,086,520.76
Deferred income tax expenses -18,156,820.01 15,809,478.09
Total 231,061,024.52 218,895,998.85
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
Item Amount incurred during this period
Total profit 1,171,229,382.77
Income tax expenses based on statutory/applicable tax rate 292,807,345.69
Effect of different tax rate applicable to subsidiaries -66,743,529.82
Effect of prior income tax reconciliation 4,864,785.79
Effect of non-deductible costs, expenses and losses 992,704.63
Effect of deductible temporary differences or deductible losses of
-860,281.77
unrecognized deferred income tax assets in the current period
Income tax expenses 231,061,024.52
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
52. Other comprehensive incomes
See Note. 34 for details.
53. Cash flow statement items
(1) Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Receipt of government subsidies 5,841,677.89 4,623,084.60
Receipt of deposit, security and staff reserve fund loan 12,159,144.85 9,037,333.60
Interest revenues 31,920,212.62 21,191,658.08
Others 12,573,176.34 22,693,410.19
Total 62,494,211.70 57,545,486.47
Other cash payments related to operating activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Cash payment for sales expense 1,109,432,018.32 984,966,555.13
Cash payment for administrative expenses 88,904,349.57 70,192,567.60
Cash payment for R&D expenses 102,761,552.11 74,575,724.73
Donations payment 814,455.04 694,727.20
Other payments 2,969,194.20 1,784,876.82
Total 1,304,881,569.24 1,132,214,451.48
(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 2,200,000,000.00 2,647,094,578.70
Total 2,200,000,000.00 2,647,094,578.70
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 260,000,000.00 1,540,000,000.00
Total 260,000,000.00 1,540,000,000.00
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
(3) Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Receiving payment for equity incentive 79,000.00
Total 79,000.00
Other cash payments related to financing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Repurchase of shares and handling fees 230,205,750.50
Cash paid for repayment of lease obligation principal and
23,393,284.53 32,865,808.90
interest
Total 23,393,284.53 263,071,559.40
Changes in liabilities arising from financing activities
Applicable □ Not-applicable
Unit: RMB
Increase Decrease
Item Opening balance Non-cash Closing balance
Cash changes Non-cash changes Cash changes
changes
Short-term borrowings 199,741,167.36 198,257,000.00 1,067,520.21 200,000,000.00 199,065,687.57
Capital inter-bank
15,611,335.16 168,404.06 15,779,739.22
lending of related parties
Other payables-restricted
stock repurchase 2,442,250.00 555,750.00 1,886,500.00
obligations
Other payables - payable
2,175,512,858.61 2,175,512,858.61
dividend
Lease obligation 224,849,380.79 3,805,934.91 23,393,284.53 205,262,031.17
Total 442,644,133.31 198,425,404.06 2,180,386,313.73 2,398,906,143.14 555,750.00 421,993,957.96
54. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
Supplement information Amount in the current period Amount of last period
1. Reconciliation of net profit to cash flow from operating
activities:
Net profit 940,168,358.25 879,233,775.36
Plus: Impairment provision of assets 933,627.88 5,771,681.15
Credit impairment loss 16,494,532.64 13,035,606.89
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Depreciation of fixed assets, oil and gas assets, productive
65,149,389.29 66,601,089.78
biological assets
Depreciation of right-of-use assets 24,535,799.45 18,001,711.63
Amortization of intangible assets 13,703,335.95 13,197,324.41
Amortization of long-term unamortized expenses
Loss on disposal of fixed assets, intangible assets and
1,320,658.00 997,982.47
other long-term assets ("-" for gains)
Fixed assets retirement loss ("-" for gains) 84,342.23 607,926.49
Losses from changes in fair value ("-" for revenue) -164,631.01 -129,103.13
Financial expenses ("-" for gains) -12,870,900.39 -2,424,046.38
Investments losses ("-" for gains) -16,336,567.86 -31,013,219.53
Decrease of deferred income tax assets ("-" for increase) -17,596,250.05 15,026,101.96
Increase of deferred income tax liabilities ("-" for
decrease)
Decrease in inventories ("-" for increase) 270,990,776.88 554,366,591.39
Decrease in operating receivables ("-" for increase) -273,026,536.21 -214,465,453.45
Increase in operating payables ("-" for decrease) -471,574,790.28 -789,944,755.92
Others 6,713,320.04 26,177,298.00
Net cash flows from operating activities 548,524,464.81 555,040,511.12
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:
Cash at the end of the period 1,668,571,692.93 1,344,219,071.30
Minus: Cash at the beginning of the period 1,405,752,936.36 2,395,932,752.38
Plus: Cash equivalents at the end of the period
Minus: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents 262,818,756.57 -1,051,713,681.08
(2) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 1,668,571,692.93 1,405,752,936.36
Including: Cash on hand 61,768.13 62,594.14
Cash in bank on demand for payment 1,627,304,647.96 1,357,366,603.33
Other monetary capitals on demand for payment 41,205,276.84 48,323,738.89
131
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III. Balance of Cash and Cash Equivalents at the End of the
1,668,571,692.93 1,405,752,936.36
Period
(3) Monetary capitals that do not belong to cash and cash equivalents
Unit: RMB
Reasons for not being
Amount of last
Item Amount in the current period classified as cash and
period
cash equivalents
Term deposit over three months 52,256,164.38 50,789,657.53 Restricted liquidity
Deposit security for advance payment
58,000,000.00 58,000,000.00 Restricted use right
financing
Bank acceptance bill security 214,338,000.00 405,723,750.00 Restricted use right
Security and frozen funds of e-
929,102.94 948,609.32 Restricted use right
commerce platforms
Total 325,523,267.32 515,462,016.85
55. Foreign currency monetary item
(1) Foreign currency monetary item
Unit: RMB
Closing balance in foreign
Item Conversion rate RMB equivalent
currencies
Monetary capital
Including: USD 51,187,691.24 7.1268 364,804,437.93
EUR 22,288.01 7.6617 170,764.05
GBP 0.68 9.0430 6.15
VND 27,377,321,794.20 0.00028099 7,692,753.65
SGD 753,739.71 5.2790 3,978,991.93
IDR 26,375,672,521.52 0.000444 11,710,798.60
Accounts receivable
Including: USD 35,277,091.87 7.1268 251,412,778.34
VND 18,669,109,018.50 0.00028099 5,245,832.94
IDR 4,421,868,703.00 0.000444 1,963,309.70
Accounts payable
Including: USD 1,944,368.74 7.1268 13,857,127.14
HKD 7,690.80 0.91268 7,019.24
EUR 4,010.83 7.6617 30,729.78
VND 85,351,635,849.76 0.00028099 23,982,956.16
SGD 19,708.00 5.2790 104,038.53
IDR 5,012,245,133.04 0.000444 2,225,436.84
132
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(2) Description of overseas business entities, including important overseas business entities, shall disclose
their principal overseas place of business, the recording currency and the basis for selection, and shall
also disclose the reasons for changes in the recording currency.
□ Applicable Not-applicable
56. Lease
(1) The Company acts as the leasee
Applicable □ Not-applicable
Variable lease payments not recognized through the measurement of lease obligation
□ Applicable Not-applicable
Simplified handling of short-term leasing or leasing costs for low value assets
Applicable □ Not-applicable
Unit: RMB
Item 2024 2023
Costs of short-term leases with simplified treatment method
5,515,580.94 3,992,021.50
selected
Lease-related total cash outflow 28,908,865.47 36,857,830.40
(2) The Company acts as the leaser
Operating lease as lessor
Applicable □ Not-applicable
Unit: RMB
Including: Revenue related to variable
Item Lease revenue
lease payments not through lease receipts
Buildings and structures 285,085.68
Total 285,085.68
Financing lease as lessor
□ Applicable Not-applicable
Annual undiscounted lease receipts for the next five years
□ Applicable Not-applicable
(3) Recognition of the profit and loss of financing lease sales as a manufacturer or distributor
□ Applicable Not-applicable
VIII. R&D Expenditure
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
133
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Employee remuneration 115,380,914.95 98,660,270.10
Trial production experiment cost and
29,631,031.59 16,372,788.48
consumption expenditure
New product design cost 20,891,202.96 21,374,954.51
Patent and external institutional fees 21,218,726.86 22,692,517.92
Equity incentive and performance
4,020,047.53 3,635,390.00
incentive fund cost
Others 13,362,786.32 11,647,881.41
Total 204,504,710.21 174,383,802.42
Including: Expensed R&D expenditure 204,504,710.21 174,383,802.42
Capitalized R&D expenditure
IX. Change on merger scope
1. Others
During the current period, the Company has not changed the merger scope.
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise group
Unit: RMB
Shareholding ratio
Main operating Place of Acquisition
Subsidiary name Registered capital Business nature
place registration method
Direct Indirect
Zhejiang Supor Electrical Appliances
133,697,100.00 Hangzhou Hangzhou Manufacturing industry 100.00% Establishment
Manufacturing Co., Ltd.
Zhejiang Shaoxing Supor Domestic Electrical
610,000,000.00 Shaoxing Shaoxing Manufacturing industry 100.00% Establishment
Appliances Co., Ltd.
Supor (Vietnam) Co., Ltd. 104,934,081.16 Vietnam Vietnam Manufacturing industry 100.00% Establishment
Wuhan Supor Recycling Co., Ltd. 1,000,000.00 Wuhan Wuhan Commerce 100.00% Establishment
Wuhan Supor Cookware Co., Ltd. [Note 1] 91,160,000.00 Wuhan Wuhan Manufacturing industry 25.00% 75.00% Establishment
Hangzhou Omegna Commercial Trade Co., Ltd. 10,000,000.00 Hangzhou Hangzhou Commerce 100.00% Establishment
Shanghai Supor Cookware Marketing Co., Ltd. 5,000,000.00 Shanghai Shanghai Commerce 100.00% Establishment
Enterprise
Wuhan Supor Pressure Cooker Co., Ltd. 224,039,000.00 Wuhan Wuhan Manufacturing industry 100.00% merger under
the same control
Enterprise
Zhejiang Supor Plastic & Rubber Co., Ltd. 8,044,670.77 Yuhuan Yuhuan Manufacturing industry 100.00% merger under
the same control
Enterprise
merger not
Yuhuan Supor Cookware Marketing Co., Ltd. 8,000,000.00 Yuhuan Yuhuan Commerce 100.00%
under the same
control
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Enterprise
SEADA 23,314,945.98 Singapore Singapore Commerce 51.00% merger under
the same control
Enterprise
AFS Vietnam Management Co.,Ltd. [Note 2] 2,453,486.50 Vietnam Vietnam Commerce 100.00% merger under
the same control
Shanghai WMF Enterprise Development Co., Ltd. 50,000,000.00 Shanghai Shanghai Commerce 100.00% Establishment
Zhejiang WMF Housewares Co., Ltd. 100,000,000.00 Yuhuan Yuhuan Manufacturing industry 100.00% Establishment
Zhejiang Shaoxing Supor Housewares Co., Ltd. 50,000,000.00 Shaoxing Shaoxing Manufacturing industry 100.00% Establishment
Zhejiang Supor Large Kitchen Appliance Co., Ltd. 100,000,000.00 Shaoxing Shaoxing Manufacturing industry 100.00% Establishment
PT GROUPE SEB INDONESIA MSD [Note 3] 32,714,774.74 Indonesia Indonesia Commerce 66.67% Establishment
Zhejiang Supor Water Heater Co., Ltd. [Note 4] 100,000,000.00 Shaoxing Shaoxing Manufacturing industry 52.00% Establishment
Hainan Supor E-commerce Co., Ltd. [Note 5] 8,000,000.00 Hainan Hainan Commerce 100.00% Establishment
Hainan Tefal Trade Co., Ltd. [Note 5] 10,000,000.00 Hainan Hainan Commerce 100.00% Establishment
Explanation on shareholding ratio in subsidiary different from voting ratio:
Note 1: This Company is a 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 2: The Company holds 51% equity of SEADA, and SEB INTERNATIONALE S.A.S holds 49% equity of the Company;
AFS is a subsidiary totally held by SEADA.
Note 3: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA, a subsidiary of the Company and PT
MULTIFORTUNA in Indonesia. SEADA holds 66.67% shares and PT MULTIFORTUNA holds 33.33% shares.
Note 4: 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 5: Hainan Supor E-commerce Company and Hainan Tefal Trade Company are wholly owned subsidiaries of Zhejiang Supor
Electrical.
2. Equity in joint venture or associated enterprises
(1) Financial information summary of unimportant joint ventures and associated enterprises
Unit: RMB
Closing balance/amount incurred during Opening balance/Amount incurred
this period during prior period
Associated enterprise:
Total investment book values 60,958,242.27 61,763,872.57
Total amounts of the following items
calculated according to the shareholding
ratio
- Net profit -720,742.08 -432,266.96
- Total Comprehensive Incomes -720,742.08 -432,266.96
135
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
XI. Government subsidies
1. Government subsidies recognized as per receivable at the end of reporting period
□ Applicable Not-applicable
Reasons for not receiving the expected amount of government subsidies at the expected time point
□ Applicable Not-applicable
2. Liabilities projects involving government subsidies
□ Applicable Not-applicable
3. Government subsidies included into the current profits and losses
Applicable □ Not-applicable
Unit: RMB
Accounting item Amount incurred during this period Amount incurred during prior period
Other incomes 36,756,610.66 29,022,563.56
VII. Risks related to financial instruments
1. All kinds of risks generated by financial instruments
(I) Risk management objectives and policies
Supor 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 Supor's financial performance. Based on such objectives, Supor's risk management policies are
established to identify and analyze the risks faced by Supor, 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 Company may encounter fluctuation in fair value of financial instruments or future cash
flows due to changes in exchange rate. Supor's foreign currency risk relates mainly to foreign currency monetary assets and
liabilities of Supor. When short-term imbalance occurred to foreign currency assets and liabilities, Supor 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.
Please refer to Note VII. 55Foreign currency monetary items for details in foreign currency financial assets and liabilities at the
end of the year of Supor.
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 June 30
of Supor will be as follows. This influence is translated into RMB at the spot rate on the balance sheet date.
Shareholders' equities Net profit
June 30, 2024
USD 3,523,455.45 3,523,455.45
EUR 1,075.41 1,075.41
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GBP 0.05 0.05
HKD -59.66 -59.66
VND -88,355.59 -88,355.59
SGD 32,162.11 32,162.11
IDR 89,299.64 89,299.64
Total 3,557,577.41 3,557,577.41
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
(2) Interest risk - risk for cash flow changes
Interest risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash flows
due to market rate. As of June 30, 2024, Supor’s bank borrowings are at a fixed rate, Supor'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 Supor 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 Supor as a result of default by the counterparty.
The exposure of the maximum credit risk assumed by Supor is the book value of each financial asset in the balance sheet
(including derivative financial instruments). Except for the financial guarantee provided by Supor in Note XVI, Supor has not
provided any other guarantee that may expose Supor 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.
Supor's credit risk is primarily attributable to receivables. In order to control such risks, Supor has taken the following measures:
(1) Receivables financing and notes receivable
Receivables financing and notes receivable of Supor is mainly bank acceptance bill receivable. Supor conducts ongoing
monitoring on receivables, to avoid significant risks in bad debts.
(2) Accounts receivable
Supor only conducts business with credible and well-reputed third parties. According to Supor's policies, credit evaluations are
performed on all customers to determine the credit limit and terms applicable to the customers. In addition, Supor 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.
137
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Supor's accounts receivable from related party SEB S.A. and its affiliates accounted for 65.25% of closing balance (December
31, 2023: 60.95%), and the Company's account receivables were expected to have less credit risk. As the Company's credit risks
fall into several business partners and customers, as of June 30, 2024, 19.64% (December 31, 2023: 21.00%) of the total accounts
receivable was due from the five largest customers of the Company after deducting receivables from related party SEB S.A. and its
affiliates. The Company has no significant central credit risk.
(3) Other receivables
Other receivables of Supor are mainly export rebate receivable and deposit as security receivable, etc. Supor 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 Supor 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, Supor 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
Unit: RMB
Ending balance
Item
Book value Within 1 year 1-3 years Over 3 years Total
Financial assets
Monetary capital 1,994,094,960.25 1,994,094,960.25 1,994,094,960.25
Transactional financial
180,164,631.01 180,164,631.01 180,164,631.01
assets
Notes receivable 11,404,422.19 11,404,422.19 11,404,422.19
Accounts receivable 3,279,868,209.80 3,279,868,209.80 3,279,868,209.80
Receivables financing 193,637,531.38 193,637,531.38 193,637,531.38
Other receivables 20,572,845.75 20,572,845.75 20,572,845.75
Other debt investment 715,128,780.80 496,785,000.00 240,955,000.00 737,740,000.00
Subtotal 6,394,871,381.18 6,176,527,600.38 240,955,000.00 6,417,482,600.38
Financial liabilities
0
Short-term borrowings 199,065,687.57 200,000,000.00 200,000,000.00
Notes payable 1,415,650,000.00 1,415,650,000.00 1,415,650,000.00
Accounts payable 3,254,803,073.88 3,254,803,073.88 3,254,803,073.88
Other payables 131,222,347.65 131,222,347.65 131,222,347.65
Other current liabilities 11,404,422.19 11,404,422.19 11,404,422.19
Lease obligation 205,262,031.17 55,710,618.71 112,405,216.69 80,622,419.98 248,738,255.38
Subtotal 5,217,407,562.46 5,068,790,462.43 112,405,216.69 80,622,419.98 5,261,818,099.10
(Continued)
Item Beginning balance
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Book value Within 1 year 1-3 years Over 3 years Total
Financial assets
Monetary capital 3,548,277,442.44 3,548,277,442.44 3,548,277,442.44
Transactional financial
351,137,787.54 351,137,787.54 351,137,787.54
assets
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
Note: Other current assets are term deposits for the purpose of obtaining benefits.
(II) Transfer of financial assets
Transferred but not wholly derecognized financial assets
For details, please refer to Note VII. "3. Notes receivable" and "27. Other current liabilities".
XIII. Disclosure of Fair Value
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: RMB
Fair value as of the balance sheet date
Item
Level 1 Level 2 Level 3 Total
I. Recurring Fair Value
-- -- -- --
Measurement
(I) Transactional financial assets 180,164,631.01 180,164,631.01
(II) Other debt investments 715,128,780.80 715,128,780.80
(III) Receivables financing
(1) Notes receivable 193,637,531.38 193,637,531.38
II. Non-continued Measurement
-- -- -- --
of Fair Value
139
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
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 the financial products, other debt investment, and receivables financing are in the financial assets measured at the
fair value with their changes included into the current profits and losses and its fair value is determined by valuation technique.
The valuation technique should make the best use of available observable market data and rely as little as possible on the specific
estimates of the entity.
4. Qualitative and quantitative information of continuous and non-continuous Level 2 fair value
measurement items, valuation techniques adopted and important parameters
None
5. Fair value of the financial assets and financial liabilities not measured at fair value
As at June 30, there was not a significant difference between the book value and fair value of Supor's various financial assets and
financial liabilities.
XIV. Related Parties and Related Transactions
1. Parent company
Holding Voting right
Place of Business Registered
Company name proportion over the proportion over the
registration nature capital
Company (%) Company (%)
Investment EUR 830
SEB INTERNATIONALE S.A.S France 83.17% 83.17%
company Million
Explanation on the parent company of Supor
Business scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operation
purpose), namely, purchase and subscription of shares, 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.
Supor's final controlling party is SEB S.A.
2. Company's subsidiaries
Please refer Note X. "1. Equity in subsidiaries" for details on the Company's subsidiaries.
3. Joint ventures and associated enterprises of the Company
Please refer to Note X. "2. Equity in joint ventures or associated enterprises" for details on the Company's significant joint
140
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
ventures and associates.
Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current period
or in preceding period but with balance in current period are as follows:
Name of 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
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
SEB Professional (Shanghai) Co,. Ltd. Same controlling shareholder
WMF GROUPE GMBH Same controlling shareholder
GROUPE SEB VIETNAM JOINT STOCK COMPANY Same controlling shareholder
GROUPE SEB THAILAND Same controlling shareholder
Emsa Taicang Co., Ltd. Same controlling shareholder
Wmf (heshan) Manufacturing Company Limited 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
Groupe SEB Innovation Center (Zhe Jiang)Co. Ltd. Same controlling shareholder
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. Company controlled by related natural person
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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
Amount
Contents of Transaction Exceeding
Amount incurred incurred
Related parties related quota transaction
during this period during prior
transaction granted limit or not
period
Finished
Wuhan Anzai Cookware Co., Ltd. 69,910,686.62 No 63,625,052.86
products
Wuhan Anzai Cookware Co., Ltd. Accessories 17,158,185.35 No 25,626,690.95
Finished
GROUPE SEB EXPORT 223,104.57 No 1,151,986.78
products
GROUPE SEB EXPORT Accessories 147,620.00 No
TEFAL S.A.S. Accessories 13,989,885.04 No 4,737,263.35
Finished
LAGOSTINA S.P.A. 2,409,631.88 No 393,590.48
products
SEB INTERNATIONAL SERVICE
Accessories 55,119.64 No 84,055.57
S.A.S.
SEB INTERNATIONAL SERVICE Finished
165,447.15 No 12,778.10
S.A.S. products
Finished
SEB ASIA LTD. 333,726.61 No 43,294.99
products
GROUPE SEB MOULINEX Accessories 540,589.10 No 1,080,900.02
Wmf (heshan) Manufacturing Company Finished
6,888.85 No 116,955.76
Limited products
Finished
GROUPE SEB THAILAND No 182,892.82
products
Finished
Emsa Taicang Co., Ltd. No 234,955.76
products
ETHERA Accessories 23,654.59 No
Finished
WMF GROUPE GMBH 30,625,736.93 No 32,327,980.44
products
Finished
SEB Professional (Shanghai) Co,. Ltd. 97,168.57 No 271.41
products
Finished
GROUPE SEB KOREA LTD. 24,966.30 No 72,887.77
products
GROUPE SEB VIETNAM JOINT Finished
160,609.57 No
STOCK COMPANY products
Sale of commodities and rendering of services
Unit: RMB
Contents of
Amount incurred during this Amount incurred during prior
Related parties related
period period
transaction
Finished
SEB ASIA LTD. 3,198,642,188.81 2,317,968,141.55
products
SEB ASIA LTD. Accessories 16,782,336.05 5,444,308.05
142
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Finished
S.A.S. SEB 3,465,969.35 7,134,221.91
products
S.A.S. SEB Accessories 341,696.74 239,073.76
Finished
TEFAL S.A.S. 1,762,548.02 1,295,914.74
products
TEFAL S.A.S. Accessories 10,787,351.42 9,354,844.69
Finished
GROUPE SEB MOULINEX 12,384,297.80 6,392,956.57
products
Finished
Supor Group Co., Ltd. 2,022,282.93 7,462,121.06
products
SEB INTERNATIONAL SERVICE S.A.S. Accessories 12,088,995.01 11,780,996.71
LAGOSTINA S.P.A. Accessories 426,029.92 129,069.03
Finished
IMUSA USA LLC 3,625,408.16 5,162,890.46
products
IMUSA USA LLC Accessories 10,395.37 21,408.79
Finished
SEB Professional (Shanghai) Co,. Ltd. 124,158.64 108,194.90
products
Finished
GROUPE SEB CANADA 3,775,240.83 4,669,945.78
products
GROUPE SEB VIETNAM JOINT STOCK Finished
7,420,342.51 4,822,561.94
COMPANY products
GROUPE SEB VIETNAM JOINT STOCK
Accessories 18,348.68
COMPANY
GROUPE SEB ANDEAN S.A. Accessories 4,324,196.02 235,484.20
Wuhan Anzai Cookware Co., Ltd. Accessories 15,018.14
Zhejiang Nanyang Pharmaceutical Sales Co., Finished
778,100.88
Ltd. products
(2) Related party leases
The Company acts as the lessee:
Unit: RMB
Rent costs of short-term Variable lease payments not
leases and low-value asset included in the Interest expense of lease
Rentals Increased right-of-use asset
leases with simplified measurement of lease obligation undertaken
Types of
treatment (if applicable) obligation (if applicable)
Leaser leased
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
assets
incurred incurred incurred incurred incurred incurred incurred incurred incurred incurred
during this during prior during this during prior during this during prior during this during prior during this during prior
period period period period period period period period period period
Supor Group 11,857,927.2 19,524,643.9
Real estate 6,910,691.78 6,557,239.86 1,163,761.31 1,536,139.01
Co., Ltd. 5 9
(3) Capital inter-bank lending of related parties
Unit: RMB
Related parties Borrowed/lent amount Start date Expiry date Notes
Borrowing
SEB S.A. 168,404.06 January 1, 2024 Non-fixed term Loans
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Lending
(4) Key management's emoluments
Unit: RMB 10,000
Amount incurred Amount incurred
Item
during this period during prior period
Key management's remuneration 899.65 870.22
Share-based payment cost and performance incentive funds for key management 450.32 221.21
(5) Other related transactions
① Property management, maintenance and berth fees
Unit: RMB
Amount incurred in the Amount incurred during
Service renderer Purchasing parties
current year prior period
The Company 115,503.52
Supor Group Co., Ltd.
Zhejiang Supor Electrical 120,000.00
② Consulting fee
Unit: RMB
Amount incurred in the Amount incurred during
Service renderer Purchasing parties
current year prior period
The Company 605,916.00 448,824.00
Wuhan Supor Cookware 306,510.00 227,046.00
SEB ASIA LTD.
Shaoxing Supor 429,996.00 318,516.00
Zhejiang Supor Electrical 277,578.00 205,614.00
③ Research and development (R&D) and human resources services.
Unit: RMB
Amount incurred during Amount incurred during
Service renderer Purchasing parties
this period prior period
Groupe SEB Innovation Center (Zhe
Zhejiang Supor Electrical 264,719.02 258,617.18
Jiang)Co. Ltd.
GROUPE SEB VIETNAM JOINT
AFS 1,347,118.88 1,587,735.40
STOCK COMPANY
Groupe SEB Innovation Center (Zhe
Shaoxing Supor 1,607,272.00
Jiang)Co. Ltd.
④ Interest expenses
Unit: RMB
Amount incurred during Amount incurred during
Selling parties Purchasing parties
this period prior period
SEB S.A. SEADA 319,528.26 293,459.62
⑤ 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 in the
144
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
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 618,738.79 (2023: RMB 986,969.97),
and as of June 30, 2024 a balance of RMB 110,749.87 has not been paid ( December 31, 2023: RMB 111,278.17).
⑥ Pursuant to the Trademark License entered into between Wuhan Supor Cookware Co., Ltd. and LAGOSTINA SPA. on
December 15, 2014, LAGOSTINA SPA licensed Wuhan Supor Cookware Co., Ltd. for compensated use of its trademark
"LAGOSTINA". According to related terms in the contract signed by both parties, use charges are accrued at 4% of revenue from
sales of products licensed. This year, Wuhan Supor Cookware should pay LAGOSTINA SPA. a trademark royalty of RMB
1,689.38 (RMB 1,071.69 in 2023), which has been fully paid by June 30, 2024 (RMB 1,071.69 as of December 31, 2023).
⑦ Pursuant to the Trademark License entered into between Omegna and LAGOSTINA SPA. on December 5, 2016,
LAGOSTINA SPA licensed Omegna for compensated use of its trademark "LAGOSTINA". According to related terms 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 SPA. trademark use charges of RMB 40,131.92 (2023: RMB 6,525.10), and as of June 30,
2024, a balance of RMB 46,657.02 has not been paid (December 31, 2023: RMB 3,392,562.80).
⑧ 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 in the contract signed by both parties, Shaoxing Supor should pay technology transfer fee RMB 0 (2023: RMB
8,621.96) to ETHERA in current period, which was calculated as per corresponding unit price of actual total sales. This fee has
been fully paid by June 30, 2024 (fully paid as of December 31, 2023).
6. Receivables and payables by related parties
(1) Items receivable
Unit: RMB
Closing balance Opening balance
Items Related parties Provision for Provision for bad
Book balance Book balance
bad debts debts
Accounts
SEB ASIA LTD. 2,176,846,986.30 65,305,409.59 1,780,235,700.55 53,407,071.02
receivable:
S.A.S. SEB 1,524,932.88 45,747.99 1,406,560.86 42,196.83
TEFAL S.A.S. 8,336,417.55 250,092.53 5,793,936.65 173,818.10
SEB INTERNATIONAL SERVICE
9,153,186.43 274,595.59 5,586,161.59 167,584.85
S.A.S.
GROUPE SEB MOULINEX 7,794,489.23 235,608.21 5,481,313.07 166,201.95
IMUSA USA LLC 2,076,699.06 62,300.97 1,802,613.02 54,078.39
Supor Group Co., Ltd. 274,958.44 14,145.42 16,238.60 811.93
SEB Professional (Shanghai) Co,. Ltd. 14,744.38 442.33 101,518.92 3,045.57
GROUPE SEB CANADA 2,827,883.07 84,836.49 1,337,688.11 40,130.64
GROUPE SEB VIETNAM JOINT
7,598,883.42 227,966.50 5,001,845.80 150,055.37
STOCK COMPANY
GROUPE SEB ANDEAN S.A. 3,924,152.48 117,724.57 304,479.89 9,134.40
LAGOSTINA S.P.A. 308,603.05 9,258.09 53,387.75 1,601.63
Groupe SEB Innovation Center (Zhe
280,374.16 8,411.22 347,080.36 10,412.41
Jiang)Co. Ltd.
Total 2,220,962,310.45 66,636,539.50 1,807,468,525.17 54,226,143.09
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Advance
EMSA GMBH 197.55 197.55
payment:
Total 197.55 197.55
Other
Supor Group Co., Ltd. 165,000.00 121,000.00 165,000.00 98,500.00
receivables:
Total 165,000.00 121,000.00 165,000.00 98,500.00
(2) Payables
Unit: RMB
Items Related parties Ending book balance Beginning book balance
Accounts
Wuhan Anzai Cookware Co., Ltd. 8,677,405.45 19,000,235.48
payable:
WMF GROUPE GMBH 9,579,969.25 8,344,358.20
GROUPE SEB EXPORT 12,895.06 73,810.00
TEFAL S.A.S. 9,293,014.30 4,296,587.82
S.A.S. SEB 113,393.05 113,921.35
LAGOSTINA S.P.A. 1,460,358.00 5,725,894.53
GROUPE SEB MOULINEX 905,072.38 1,356,062.24
GROUPE SEB THAILAND 71,925.59
SEB INTERNATIONAL SERVICE
74,254.52 17,570.25
S.A.S.
ETHERA 30,729.78 54,519.37
Groupe SEB Innovation Center (Zhe
718,456.36
Jiang)Co. Ltd.
Supor Group Co., Ltd. 6,536.00
Wmf (heshan) Manufacturing Company
7,784.40
Limited
SEB Professional (Shanghai) Co,. Ltd. 129.00
SEB ASIA LTD. 342,313.62 152,068.55
SEB DEVELOPPMENT SAS 1,030,968.94
Total 30,497,189.81 40,963,043.68
Contract
Supor Group Co., Ltd. 316,092.76 381,292.07
liabilities:
Total 316,092.76 381,292.07
Other payables: SEB S.A. 15,779,739.22 15,611,300.30
Wuhan Anzai Cookware Co., Ltd. 50,000.00 50,000.00
Total 15,829,739.22 15,661,300.30
Lease
Supor Group Co., Ltd. 46,104,337.81 52,956,539.46
obligation:
Total 46,104,337.81 52,956,539.46
146
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
XV. Share-based payment
1. Overall information
Applicable □ Not-applicable
Unit: RMB
Granted in the current Vested in the current Invalid in the current
Released in the current period
Granted object period period period
category Share Share Share Share
Amount Amount Amount Amount
number number number number
Management 332,000 18,824,400.00
Sales personnel 110,000 6,237,000.00
R&D personnel 113,750 6,449,625.00
Total 555,750 31,511,025.00
Stock options or other equity instruments issued to the public at the end of the period
Applicable □ Not-applicable
Restricted stock incentive plans in 2021 and 2022:
Stock options issued to the public at the Other equity instruments issued to the
end of the period public at the end of the period
Granted object category The range of The remaining The range of The remaining
exercise price of period of the exercise price of period of the
stock options contract stock options contract
Management, sales personnel, and R&D
RMB1/share 1.58 - 2.36 years
personnel
Stock Option Incentive Plan in 2023:
Stock options issued to the public at the Other equity instruments issued to the
end of the period public at the end of the period
Granted object category The range of The remaining The range of The remaining
exercise price of period of the exercise price of period of the
stock options contract stock options contract
Management, sales personnel, and R&D personnel RMB 36.49/share 3.36 years
2. Equity-settled share-based payment
Applicable □ Not-applicable
Unit: RMB
Restricted stock incentive plans in 2021 and 2022 Related Information
Determination method for fair value of equity
According to the market price on the grant date.
instruments on grant date
Based on the corresponding equity instruments of incentive targets, the
Determination method for the optimal estimate of the
performance of the Company and the forecast of future performance of the
number of equity instruments expected to vest
Company
The significant difference between this period estimate
None
and last period
Capital reserve accumulated due to equity-settled share-
100,646,178.85
based payment
Total expenses incurred due to equity-settled share-
3,326,046.00
based payment transactions
147
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Stock Option Incentive Plan in 2023 Related Information
Determination method for fair value of equity
Fair value in accordance of the Black-Scholes model
instruments on grant date
Important parameters for fair value of equity
Estimated dividends, historical volatility, and risk-free interest rate
instruments on grant date
Based on the corresponding equity instruments of incentive targets, the
Determination method for the optimal estimate of the
performance of the Company and the forecast of future performance of the
number of equity instruments expected to vest
Company
The significant difference between this year's estimate
None
and last year
Capital reserve accumulated due to equity-settled share-
7,261,255.05
based payment
Total expenses incurred due to equity-settled share-
3,947,844.00
based payment transactions in this year
Other remarks:
According to the 2022 Equity Incentive Plan deliberated and approved by the First Interim General Meeting of Shareholders
2022 held on September 21, 2022, the Company used its self-owned capital to repurchase 1,332,500 shares of the Company's
shares in the form of centralized competitive price transaction for the incentive plan, and increased treasury shares by RMB
69,398,019.65. On October 12, 2022, the Company granted 1,253,500 shares to incentive employees at a grant price of RMB 1.00
per share. The above grant reduced the treasury shares by RMB 65,668,429.65 and offset the undistributed profit at the beginning
of the year by RMB 64,414,929.65. At the same time, the Company confirmed its stock repurchase obligation and increased
treasury shares by RMB 1,253,500.00. On February 1, 2023, the Company granted 79,000 shares to the remaining incentive
employees at a grant price of RMB 1.00 per share. The above grant reduced treasury shares by RMB 3,650,590.00 and offset the
undistributed profit at the beginning of the year by RMB 3,650,590.00. At the same time, the Company confirmed its stock
repurchase obligation and increased treasury shares by RMB 79,000.00.
The impact of 2021 Equity Incentive Plan on the capital reserve is RMB 58,961,502.97 at the beginning of the period, and
with an accrual of RMB 1,598,142.00 in the year, amounting to an accrued amount of RMB 60,559,644.97.
The impact of 2022 Equity Incentive Plan on the capital reserve was RMB 38,358,629.88 at the beginning of the period, and
with an accrual of RMB 1,727,904.00 in the year, amounting to an accrued amount of RMB 40,086,533.88.
The impact of 2023 Equity Incentive Plan on the capital reserve is RMB 3,313,411.05 at the beginning of the period, and with
an accrual of RMB 3,947,844.00 in the year, amounting to an accrued amount of RMB 7,261,255.05.
3. Current share-based payment expenses
Applicable □ Not-applicable
Unit: RMB
Equity-settled share-based payment Cash-settled share-based payment
Granted object category
amount amount
Management 4,857,231.02
Sales personnel 1,262,827.79
R&D personnel 1,153,831.19
Total 7,273,890.00
XVI. Commitments and Contingencies
1. Contingencies
(1) Significant contingencies at the date of balance sheet
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, Supor still retains an estimated liability of RMB 4 million
(December 31, 2023: RMB 4 million) as at June 30, 2024. In 2021, export customers filed claims for product quality problems
148
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
against Shaoxing Supor, a subsidiary, on the grounds of user disputes, due to the pending conclusion of the case, and based on the
principle of conservatism, Supor still retained an estimated liability of RMB 1.54 million (December 31, 2023: RMB 1.54 million)
on June 30, 2024.
Contingent liabilities formed by financial guarantee and their financial impact
Supor signs tripartite acceptance agreements with distributors and banks, and Supor provides financing guarantee for the banks to
issue bank acceptance bills to the distributors. In the event that Supor endorses and assigns an acceptance bill obtained by Supor,
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, Supor will bear part of the loss of the difference that the bank has not recovered from the distributor. As at
June 30, 2024, the risk exposure undertaken by Supor was RMB 210.35 million (December 31, 2023, RMB 343.91 million) and
the estimated liabilities accrued by the Company under the financial guarantee contracts for the risk exposure amounted to RMB
1.05 million (RMB 1.72 million as of December 31, 2023).
(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 situation
None
XVIII. Other Important Matters
1. Segment information
(1) Determination basis and accounting policy of report segment
Supor 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 Supor's organization meeting following conditions: (1) The organization can yield income and cost
in daily activity; (2) Supor's management can appraise operating result of the organization regularly, so as to allocate resources on
a targeted basis and evaluate its performance; (3) Supor 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 branch reports is conducted with the revenue of trans-branch transaction measured at the actual transaction
price. The accounting policy for branch report preparation is consistent with that used in Supor's financial statement.
Supor, 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
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Revenue from
3,002,863,732.67 7,910,223,642.64 93,097,879.86 172,506,283.70 10,833,678,971.47
main business
Cost of main
2,217,258,563.86 6,052,244,396.01 79,446,321.56 172,636,050.29 8,176,313,231.14
business
(3) Other explanations
② Geographic segment
Information on Supor's income 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. Income 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.
Item Domestic Foreign Inter-segment offsetting Total
Revenue from
7,432,782,168.71 3,417,293,105.42 16,396,302.66 10,833,678,971.47
main business
Cost of main
5,258,198,694.30 2,934,373,233.45 16,258,696.61 8,176,313,231.14
business
Non-current assets 1,994,680,999.56 61,144,804.27 117,033,788.09 1,938,792,015.74
③ Major customers
Among Supor's customers, one customer (2023: 1) whose revenue from a single customer accounted for 10% or more of Supor's
total revenue was related party SEB S.A. and its affiliates, accounting for approximately 29.89% (same period in 2023: 23.79%) of
Supor'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) 669,325,449.60 639,632,187.73
Total 669,325,449.60 639,632,187.73
(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 bad 669,325,449.60 100.00% 17,259,163.34 2.58% 652,066,286.26 639,632,187.73 100.00% 15,501,798.17 2.42% 624,130,389.56
debts made on the
basis of portfolio
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Including:
Portfolio 1: age
574,935,545.17 85.90% 17,199,766.36 2.99% 557,735,778.81 515,929,581.71 80.66% 15,395,153.38 2.98% 500,534,428.33
portfolio
Portfolio 2: low-
59,396,976.89 8.87% 59,396.98 0.10% 59,337,579.91 106,644,785.32 16.67% 106,644.79 0.10% 106,538,140.53
risk portfolio
Portfolio 3:
merged related 34,992,927.54 5.23% 0.00% 34,992,927.54 17,057,820.70 2.67% 0.00% 17,057,820.70
parties portfolio
Total 669,325,449.60 100.00% 17,259,163.34 2.58% 652,066,286.26 639,632,187.73 100.00% 15,501,798.17 2.42% 624,130,389.56
The number of categories for provision for bad debts by portfolio: Portfolio 1
Provision for bad debts made on the basis of portfolio: RMB 17,199,766.36
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year 574,935,545.17 17,199,766.36 2.99%
Total 574,935,545.17 17,199,766.36
If provision for bad debts for accounts receivable is made based on the general model of expected credit losses:
□ Applicable Not-applicable
(3) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Opening
Categories Collected or Closing balance
balance Accrued Written off Others
reversed
Provision for bad
debts for accounts 15,501,798.17 1,757,365.17 17,259,163.34
receivable
Total 15,501,798.17 1,757,365.17 17,259,163.34
(4) Accounts receivable and contract assets details of the top 5 closing balances by debtors
Unit: RMB
Provision for bad
Proportion to the
debts for accounts
Closing Closing balance of total closing
Closing balance receivable and
balance of accounts balance of
Entity name of accounts closing balance of
contract receivable and accounts
receivable contract asset
assets contract assets receivable and
impairment
contract assets
provision
SEB S.A. and its affiliates 574,380,695.74 85.81% 17,231,420.87
Customer G 44,192,988.76 6.60% 44,192.99
Supor Vietnam 13,448,673.77 2.01%
Wuhan Supor Cookware 8,975,246.19 1.34%
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Customer M 5,746,499.69 0.86% 5,746.50
Total 646,744,104.15 96.62% 17,281,360.36
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 621,669,532.19 674,127,502.50
Total 621,669,532.19 674,127,502.50
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 305,528.00 305,528.00
Fund pool 617,771,173.19 671,436,662.09
Temporary payment receivable 5,614,426.41 3,968,595.43
Personal deposit 329,174.76 551,458.41
Total 624,020,302.36 676,262,243.93
2) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (including 1 year) 621,368,151.82 675,240,966.75
1-2 years 1,730,901.36 85,528.00
2-3 years 20,000.00 34,500.00
Over 3 years 901,249.18 901,249.18
Over 5 years 901,249.18 901,249.18
Total 624,020,302.36 676,262,243.93
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
Accounts
1,187,578.89 0.19% 1,187,578.89 100.00% 1,187,578.89 0.18% 1,187,578.89 100.00%
receivable for
152
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
provision made on
an individual basis
Notes receivable
for provision for
bad debts made on 622,832,723.47 99.81% 1,163,191.28 0.19% 621,669,532.19 675,074,665.04 99.82% 947,162.54 0.14% 674,127,502.50
the basis of
portfolio
Including:
Portfolio 1: age
5,061,550.28 0.81% 1,163,191.28 22.98% 3,898,359.00 1,699,199.49 0.25% 947,162.54 55.74% 752,036.95
portfolio
Portfolio 2: low-
617,771,173.19 99.00% 617,771,173.19 673,375,465.55 99.57% 673,375,465.55
risk portfolio
Total 624,020,302.36 100.00% 2,350,770.17 0.38% 621,669,532.19 676,262,243.93 100.00% 2,134,741.43 0.32% 674,127,502.50
Provision for bad debts made on an individual basis: RMB 1,187,578.89
Unit: RMB
Opening balance Closing balance
Name Provision for Provision for Provision
Book balance Book balance Reasons
bad debts bad debts proportion
Customer It is not expected to be recovered, so the
1,187,578.89 1,187,578.89 1,187,578.89 1,187,578.89 100.00%
H provision for bad debts is fully accrued.
Total 1,187,578.89 1,187,578.89 1,187,578.89 1,187,578.89
The number of categories for provision for bad debts by portfolio: Portfolio 1
Provision for bad debts made on the basis of portfolio: RMB 1,163,191.28
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (including 1
2,409,399.74 120,469.99 5.00%
year)
1-2 years 1,730,901.36 138,472.11 8.00%
2-3 years 20,000.00 3,000.00 15.00%
Over 5 years 901,249.18 901,249.18 100.00%
Total 5,061,550.28 1,163,191.28
Provision for bad debts based on the general model of expected credit losses
Unit: RMB
Phase I Phase II Phase III
Expected credit
Provision for bad debts loss in the entire Expected credit loss in Total
Expected credit loss
duration (without the entire duration
in future 12 months
credit (credit impairment)
impairment)
Balance on January 1, 2024 947,162.54 1,187,578.89 2,134,741.43
Balance on January 1, 2024 in
the current period
Withdrawal in the current 216,028.74 216,028.74
153
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
period
Balance on June 30, 2024 1,163,191.28 1,187,578.89 2,350,770.17
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not-applicable
4) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Opening
Categories Collected or Write-off or Closing balance
balance Accrued Others
reversed charge-off
Provision for bad debts of
2,134,741.43 216,028.74 2,350,770.17
other receivables
Total 2,134,741.43 216,028.74 2,350,770.17
5) Other receivables details of the top 5 closing balances by debtors
Unit: RMB
Proportion in the
Closing balance of
Nature of total closing
Entity name Closing balance Ages provision for bad
receivables balance of other
debts
receivables
Hainan Supor E-
Fund pool 216,784,300.00 Within 1 year 34.74%
commerce Company
Zhejiang Supor
Fund pool 131,863,794.89 Within 1 year 21.13%
Electrical
Wuhan Supor
Fund pool 108,212,172.85 Within 1 year 17.34%
Cookware
Omegna Fund pool 78,898,286.53 Within 1 year 12.64%
Shanghai WMF Fund pool 60,000,000.00 Within 1 year 9.62%
Total 595,758,554.27 95.47%
6) Reported as other receivables due to centralized fund management
Unit: RMB
Reported as other receivables due to centralized fund
617,771,173.19
management
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
2,789,880,789.36 2,789,880,789.36 2,787,004,539.36 2,787,004,539.36
subsidiaries
154
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Investments in associates
60,920,940.10 60,920,940.10 61,626,527.25 61,626,527.25
and joint ventures
Total 2,850,801,729.46 2,850,801,729.46 2,848,631,066.61 2,848,631,066.61
(1) Investments in subsidiaries
Unit: RMB
Increase/decrease Closing
Opening balance
Opening balance (book Closing balance (book balance of
Invested unit of impairment Accrued
value) Investment Investment value) impairment
provision impairment Others
increased decreased provision
provision
Wuhan Supor Pressure Cooker 240,428,244.41 240,428,244.41
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 784,121,383.11 722,028.00 784,843,411.11
Shaoxing Supor 652,369,686.26 738,888.00 653,108,574.26
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 607,152,927.18 362,190.00 607,515,117.18
SEADA 11,890,622.45 11,890,622.45
Shanghai WMF 50,198,022.26 23,190.00 50,221,212.26
Zhejiang WMF 104,415,267.98 260,658.00 104,675,925.98
Supor Large Kitchen Appliance 101,226,928.70 84,528.00 101,311,456.70
Shaoxing Supor Housewares 55,458,345.57 363,246.00 55,821,591.57
Supor Water Heater 31,200,000.00 31,200,000.00
Hainan Supor E-commerce
3,605,498.07 321,522.00 3,927,020.07
Company
Total 2,787,004,539.36 2,876,250.00 2,789,880,789.36
(2) Investments in associates and joint ventures
Unit: RMB
Increase/decrease Closing
balance
Opening Opening Adjustme
of
balance balance of Investm nt in Cash Closing balance
Investing unit Investme Investment profit Accrued impairm
(book impairment ent other Changes in dividend/profit (book value)
nt or loss recognized impairment Others ent
value) provision decrease compreh other equity declared for
increased by equity method provision provisio
d ensive distribution
n
income
I. Joint Venture
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2024 Semiannual Report of Zhejiang Supor Co., Ltd.
II. Associated Enterprise
Wuhan Anzai
61,626,527.
Cookware Co., -705,587.15 60,920,940.10
25
Ltd.
61,626,527.
Subtotal -705,587.15 60,920,940.10
25
61,626,527.
Total -705,587.15 60,920,940.10
25
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable Not-applicable
The recoverable amount is determined based on 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 1,349,519,521.85 1,192,335,337.56 1,168,704,643.55 981,805,496.52
Revenue from other
33,228,409.53 30,070,055.18 25,634,866.85 23,569,024.43
operations
Total 1,382,747,931.38 1,222,405,392.74 1,194,339,510.40 1,005,374,520.95
Breakdown information of operating income and operating cost:
Unit: RMB
Total
Contract classification
Operating income Operating cost
Business type
Including:
Cookware 1,349,519,521.85 1,192,335,337.56
Others 33,228,409.53 30,070,055.18
Classified by business area
Including:
Domestic 369,748,720.19 285,952,463.58
Foreign 1,012,999,211.19 936,452,929.16
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 amount of revenue corresponding to the performance obligations that have been signed but
have not been performed or not yet completed is RMB 4,997,556.65, of which RMB 4,997,556.65 is expected to be recognized as
revenue in 2024.
5. Investment income
Unit: RMB
156
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
Item Amount incurred during this period Amount incurred during prior period
Income from long-term equity
-705,587.15 -460,529.47
investments under the equity method
Investment income from disposal of
879,291.91 2,620,258.47
transactional financial assets
Investment income from the disposal of
3,629,637.00
other debt investments
Investment income of debt investment
52,657.54 3,828,273.98
during the holding period
Interest from term deposit 5,852,397.27
Total 3,855,999.30 11,840,400.25
XX. Supplementary Information
1. Breakdown of non-recurring profit or loss in the current period
Applicable □ Not-applicable
Unit: RMB
Item Amount Notes
Profit and loss on disposal of non-current assets -1,405,000.23
Government subsidies included into the current profits and losses (except
those that are closely related to the Company's normal business operations,
comply with national policies and regulations, available according to 5,841,677.89
determined standards, and have a continuous impact on the profit and loss
of the Company)
Except the effective hedging business related to the normal operation of the
Company, profits and losses from fair value changes of held-for-trading
financial assets and financial liabilities by non-financial enterprises and 17,206,786.02
profits and losses obtained from disposal of financial assets and financial
liabilities
Other non-operating incomes or expenditures except for the foregoing
1,366,434.45
items
Minus: influenced amount of income tax 5,052,136.70
Influenced amount of minority shareholders' equities (after tax) 20,604.43
Total 17,937,157.00 --
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
2. Return on net assets and earnings per share
Profit of the reporting period Weighted average Earnings per share
157
2024 Semiannual Report of Zhejiang Supor Co., Ltd.
return on net Basic earnings per Diluted earnings per
assets share (RMB/share) share (RMB/share)
Net profit attributable to shareholders of common shares 15.45% 1.181 1.181
Net profit attributable to shareholders of common shares
15.15% 1.158 1.158
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 reports disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable Not-applicable
(2) Net profit and net assets discrepancies in financial reports 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.
Zhejiang Supor Co., Ltd.
Chairman: Thierry de LA TOUR D’ARTAISE
August 30, 2024
158
