2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Zhejiang Supor Co., Ltd.
2022 Semiannual Report
August 2022
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2022 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 statement
enclosed in this Semiannual Report is true, accurate and complete.
All directors have attended the Board Meeting in person, in which the
current report was reviewed and approved.
This Semiannual Report relating to such forward-looking statement as future
plan does not form any substantive commitment to investors. 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.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
As for the risk factors confronted by the Company, see Part 10 "Risks and
Countermeasures" of Section III "DISCUSSION AND ANALYSIS OF THE
MANAGEMENT".
The Company has planned not to distribute cash dividends or bonus shares,
and not to convert capital reserve into share capital.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Table of Contents
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND DEFINITIONS ........................................................................... 2
SECTION II COMPANY PROFILE AND MAJOR FINANCIAL INDICATORS ................................................................................ 7
SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEMENT ....................................................................................... 10
SECTION IV CORPORATE GOVERNANCE .................................................................................................................................... 22
SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITY .............................................................................................. 24
SECTION VI SIGNIFICANT EVENTS .............................................................................................................................................. 28
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS ............................................ 37
SECTION VIII INFORMATION ON PREFERRED SHARE ............................................................................................................. 43
SECTION IX INFORMATION ON BOND ......................................................................................................................................... 44
SECTION X FINANCIAL STATEMENT ........................................................................................................................................... 45
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
CATALOG OF REFERENCE DOCUMENTS
I. 2022 Semiannual Report of the Company and abstract concerned with signature of legal representative;
II. Accounting statements with signature and seal of legal representative, person in charge of accounting and person in charge of
accounting department;
III. Original of all company documents and bulletins published in newspaper designated by CSRC within the reporting period.
Reference documents above shall be prepared by Securities Department of the Company.
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2022 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 Corporation
CSDCC means
Limited
Company, the company and Supor means Zhejiang Supor Co., Ltd.
SEB Internationale means SEB INTERNATIONALE S.A.S
SEB Group means SEB S.A.
Zhejiang Supor Electrical means Zhejiang Supor Electrical Appliance 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 Cookware means Wuhan Supor Cookware Co., Ltd.
Wuhan PC 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 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.
Shanghai SEB/SSEAC means Shanghai SEB Electrical Appliances Co., Ltd.
Zhejiang WMF means Zhejiang WMF Housewares Co., Ltd.
Shaoxing Supor Housewares means Zhejiang Shaoxing Supor Housewares Co., Ltd.
Supor LKA means Zhejiang Supor Large Kitchen Appliance Co., Ltd.
Supor Water Heater means Zhejiang Supor Water Heater Co., Ltd.
GSIM or Indonesian Company means PT Groupe SEB Indonesia MSD
Hainan Supor E-commerce Company means Hainan Supor E-Commerce Co., Ltd.
Hainan Tefal Trade Company means Hainan Tefal Trade Co., Ltd.
2021 Equity Incentive Plan means 2021 Restricted Stock Incentive Plan (Draft)
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION II COMPANY PROFILE AND MAJOR FINANCIAL
INDICATORS
I. Company Information
Short Form of the Stock: Supor Stock Code 002032
Abbreviation of Unchanged Stock
None
(if any)
Stock Exchange for Stock Listing Shenzhen Stock Exchange
Chinese Name of the Company Zhejiang Supor Co., Ltd.
Abbreviated Chinese Name of the
Supor
Company (if any)
Abbreviated English Name of the
ZHEJIANG SUPOR CO., LTD.
Company (if any)
Abbreviation of English Name of
SUPOR
the 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. Contact information:
Are there any changes about the registered address, office address and postal code, website or email address of the Company in the
reporting period?
□Applicable Not-applicable
The registered address, office address and postal code, website and email address of the Company did not change in the reporting
period. See Annual Report 2021.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
2. Media for information disclosure and archiving
Are there any changes about media for information disclosure or archiving in the reporting period?
□Applicable Not-applicable
Papers appointed by the Company for information disclosure: website appointed by CSRC for publishing semiannual report, and the
place for archiving the Company's semiannual report have not been changed in the reporting period. Refer to Annual Report 2021 for
details.
3. Other relevant information
Whether other relevant information changed in 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
Same period last Increased or
This reporting period
year decreased
Operating income (RMB) 10,323,979,744.82 10,433,875,893.62 -1.05%
Net profits attributable to shareholders of listed company (RMB) 932,849,164.03 865,590,446.89 7.77%
Net profit attributable to shareholders of listed company after
909,114,292.90 860,175,721.67 5.69%
deducting non-recurring profit or loss (RMB)
Net cash flows from operating activities (RMB) 1,308,844,866.33 300,430,763.45 335.66%
Basic earnings per share (RMB/share) 1.155 1.066 8.35%
Diluted earnings per share (RMB/share) 1.155 1.063 8.65%
Return on weighted average net assets 12.31% 12.02% 0.29%
The end of the Increased or
End of last year
reporting period decreased
Total assets (RMB) 12,471,477,330.05 13,899,456,422.16 -10.27%
Net assets attributable to shareholders of listed company (RMB) 6,970,314,203.17 7,622,639,752.86 -8.56%
V. Accounting Data Discrepancies under domestic and foreign Accounting Standards
1. Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□Applicable Not-applicable
No net profit and net assets discrepancies in financial statements disclosed separately under International Accounting Standards and
Chinese Accounting Standards in the reporting period
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
2. Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□Applicable Not-applicable
No net profit and net assets discrepancies in financial statements disclosed separately under International Accounting Standards and
Chinese Accounting Standards existed in 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
-312,542.28
for asset impairment)
Government subsidies included in the current profits and losses (except those that
are closely related to the Company's normal business operations, comply with
21,616,692.79
national policies and regulations and are continuously available according to certain
standard quota or quantity)
Enterprise restructuring costs, such as resettling employees expenses, integration
-453,079.14
expenses, etc.
Except effective hedging business related to the Company's normal business
operations, profits and losses from fair value changes caused by the held
transactional financial assets and transactional financial liabilities, and investment 10,065,488.38
income acquired from disposal of transactional financial assets, transactional
financial liabilities and available-for-sale financial assets
Other non-operating incomes or expenditures except for the foregoing items 883,117.00
Minus: influenced amount of income tax 8,065,234.95
Influenced amount on minority shareholders' equities (after tax) -429.33
Total 23,734,871.13
Details of other profit and loss items complying with the definition of non-recurring profits or losses:
□Applicable Not-applicable
The Company does not have other specific circumstances of other profit and loss items complying with the definition of non-recurring
profits or losses in the Company.
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 did not define any non-recurring profit and loss that is defined and listed 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 profit
and loss.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION III DISCUSSION AND ANALYSIS OF THE
MANAGEMENT
I. Main business during reporting period
(I) Main business of the Company
As China's famous cookware R&D and manufacturing company, Zhejiang Supor Co., Ltd is a China's leading manufacturer of
small domestic appliances and also the first listed company in China's cookware industry. Established in 1994, the headquarters of the
Company locates in Hangzhou owning six R&D and manufacturing bases located in Yuhuan City, Hangzhou City, Shaoxing City
(Yuecheng District and Keqiao District) in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam.
Supor's main businesses include: open fire cookware, kitchen utensil, small domestic appliance, large kitchen appliance and H&PC
appliance.
1. Open fire cookware and kitchen utensils mainly include wok, pressure cooker, fry pan, sauce pan, steamer, pottery pot, kettle,
knife, spatula, thermal pot, thermos& flask, kitchen tool, food container, etc.
2. The small domestic appliance mainly includes: electric rice cooker, electric pressure cooker, induction hob, soymilk maker,
electric kettle, juicer, slow cooker, electric steamer, electric hotpot, food processor, baking pan, air fryer, etc.
3. The large kitchen appliance mainly includes: range hood, gas cooker, disinfection cabinets, water purifier, embedded steaming
oven, water heater, integrated stove, etc.
4. The H&PC appliance mainly includes: air purifier, clothes steamer, vacuum cleaner, floor washer, electric iron, etc.
The Company's cookware and electrical products have been exported to more than 50 countries such as Japan, European and
American countries through SEB Group.
(II) Development of the Company's industry and its market status
In the first half of 2022, affected by repeated pandemic incidents and Russia-Ukraine conflict, the global imbalance between
supply and demand intensified. In addition, the resulting impacts such as the soaring price of energies, slow growth rate of goods trade
and significant increase of inflation have impeded the recovery of global economy. Due to unfavorable macroeconomic factors, global
consumers become increasingly concerned about their purchasing power and cut spending on non-essential services and leisure. The
global cookware and small domestic appliance market have confronted great challenges in the first half year.
Domestic retail consumption was greatly impacted by the recurring outbreak of pandemic incidents. Backed by effective measures
for pandemic prevention&control and consumption-promoting policies, the consumer market gradually recovered. At the same time,
we also have observed that the general trend of consumption upgrade in the post-pandemic era remains unchanged, and the further
improvement in the urbanization rate in China, expedited facilitation of common prosperity, and popularization of pension, medical
insurance and other social benefits, have provided a long-term support for the consumption upgrade. With the general trend of
consumption upgrade, the continuous innovation and consumer research and the precise matching with the segment populations' high-
end, individualized, fashion-orientated, healthy and intellectualized demand will become the major impetus that drives the growth of
consumption in the industry.
In the field of open fire cookware, the flow of offline channels declined continuously. Due to the outbreak of pandemic in major
consumption cities in China in the first half of 2022, the sales have been further shifting from offline to online channels. According to
the data of 30 major cities in China monitored by GFK, the offline retail sales of eight major product categories of open fire cookware
(wok, pressure cooker, frying pan, stockpot, milk pot, steamer, cookware set and ceramic slow cooker) declined in double digits in the
first half of 2022 on a year-on-year basis. Supor's total offline market shares of above categories have reached 48.6% in total and
maintained the leading position in the industry steadily. According to the monitoring data of AVC, the online retail sales of 11 major
product categories of open fire cookware (wok, pressure cooker, milk pot, frying pan, kettle, casserole, stockpot, hot pot, steamer,
enamel pot and cookware set) increased flat in the first half of 2022 on a year-on-year basis. Supor’s total online market shares of above
categories have reached 22.9%, which was four times that of the 2nd brand. In terms of the sales performance of various product
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
categories, the rigidly demanded product categories of wok and pressure cooker demonstrated strong vitality; the product categories of
enamel pot with exquisite appearance and great popularity among young people had a 50% year-on-year online growth rate. The trend
of consumption upgrade in the open fire cookware market remains unchanged. In addition, consumers preferred those healthy materials,
such as 316L stainless steel and titanium.
In the field of small domestic appliance, the purchase behaviors of consumers tended to be more rational. Since consumers have
higher requirements for the technology and quality of core product categories, plus their higher sensitivity to the idling of segment
product categories, the consumption demand for small domestic appliance of kitchenware is continuously challenged. According to the
total data from AVC, the retail sales of electric rice cooker, induction hob, electric pressure cooker, soybean milk machine, high-speed
blender, mixer, juicer, electric kettle, baked machine (electric baking pan, electric barbecue oven, multifunctional pot), electric steamer,
slow cooker, health kettle, air fryer and desktop single-function oven amounted to 26.38 billion yuan, representing a year-on-year
decline of 4.9%. Supor's online market shares of above categories have reached 21.5% according to the data monitored by AVC in the
first half of 2022. The market shares ranked first in the industry with a year-on-year growth of 1.0 pct. The total offline market shares
of above categories have reached 33.5%, with a year-on-year growth of 3.3 pct., ranking second in the industry. In terms of the
performance of various categories, the rigidly demanded product categories (electric rice cooker and electric kettle) showed strong
resilience.The market of oil-free air fryer still grew rapidly in 2022. In the first half of 2022, its online retail sales achieved 160% year-
on-year growth rate, becoming the second largest category after electric rice cooker. The versatility-oriented product categories of
electric steamers increased by more than 50%, revealing consumers' preference for healthy cooking.
(III) Business performance in the reporting period
1. Product strategy
During the reporting period, Supor sustainably promoted the innovation strategy and new product development strategy of
"centering on the consumers", with the help of big data on the internet, deeply tapped the users' demands of the subdivided consumers
and different scenarios, continuously provided smart product solutions, met more diversified consumer demands and provided more
considerate and all-around consumer experience.
In the business of open fire cookware, Supor has continuously explored consumer demand and accelerated the expansion of
products with core market competitiveness. In the first half of 2022, the Company launched the ti-authentic uncoated non-stick wok,
which created the uncoated technology. The well-loved product won the first place in the "618 Most Popular and New Item List in
JD.COM".
In the business of small domestic appliance, Supor adheres to the differentiated product innovation strategy at all times, and
constantly rolls out innovative and intelligent products which provide creative functions for healthy and nutritious cooking. In the
category of electric rice cooker, Supor launched a small-capacity far-infrared IH rice cooker for small families, further consolidating
the advantages of far-infrared series. Featuring the removable and washable technology and the design of differentiated removable and
washable glass cover of air fryer, make cleaning much more easily and thoroughly. The first stirring health kettle launched in the
industry. The ingredients could be cooked thoroughly to better meet the "health" needs through stirring. In addition, Supor keeps a
close pace with the development of science and technology, and rolls out a brand-new "IOT Convenient Cuisine Pot", which combines
science and technology with cooking, and the function of "NFC Touch" has been applied to quickly realize human-computer interaction.
The versatile multi-cooker, Xiao C chef., is a hot-selling product, which wins the first place in the positive comment list of "618 Tmall
Cooking Pot" and the first place in the sales volume of "618 JD.COM POP Cooking Robot".
Meanwhile, Supor persistently promoted the development of H&PC appliance, and launched a new floor washer M1. Supported
by the "edge" cleaning technology, it cleaned with sterilized electrolyzed water, easily eliminating hidden bacteria, and creating a
healthy environment for our family. In addition, as for the category of clothes steamer, Supor continues to keep its leading position in
the industry. According to the monitoring data of AVC, the total online market shares of Supor's product category of clothes steamer
reached 12.7% in the first half of 2022, ranking second in the industry.
As for the business of large kitchen appliance, Supor continued to enhance the development in the branding of large kitchen
appliance, launched differentiated far-infrared heating, steaming and baking integrated stoves, and cooperated with sports star Zhang
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Jike to further expand its product influence. During the "618 Promotion", the sales of integrated stoves increased by more than 450%
year-on-year. According to the monitoring data of AVC, the total online market shares of Supor's product category of gas stove reached
15.5% in the first half of 2022, ranking first in the industry.
2. Channel strategy
With the accelerated integration of online and offline markets, Supor remained "centering on the consumers", kept optimizing its
channel layout based on the changes in consumers' purchase paths, thereby meeting the purchase needs of different consumers with
multi-channel and multi-mode layout matrices. Supor always insisted on winning the trust of consumers with excellent product quality
and obtaining the support of distributors and retailers by virtue of excellent services.
In terms of online channels, Supor continues to promote the online channel transformation strategy and optimize the store matrix
and product sales structure. In the first half of 2022, the Company's e-commerce business maintained rapid growth, and its proportion
to Supor's overall domestic sales continued to increase. Thanks to the steady advancement of one stock inventory model and DTC
strategy, Supor's sales during "618 Promotion" increased by 13.3% on a year-on-year basis. Meanwhile, Supor actively developed
interest-based platforms and continuously improved its operational capabilities, and its Pinduoduo and TikTok businesses grew rapidly.
In the first half of 2022, Supor ranked first in the small kitchen appliance industry in the TikTok channel. In addition, Supor attaches
importance to member operation and takes advantage of marketing cloud platform to strengthen consumer operation and life cycle
management, provide users with high-value services, continuously improve satisfaction and attract more members.
In terms of offline channels, due to the pandemic in the second quarter, customers flow in offline channels decreased, and the
operation of offline channels faced challenges in the first half of 2022. However, Supor has been working with channel clients and
agents to actively respond, expand brand alliances and integrate brand resources, and thus remaining the solid market position. Supor
maintains rapid growth among tier-1 and 2 markets by promoting community group buying and home delivery business, and continues
to enhance the cooperative relationship with head platforms to seize the opportunities of new channels. Besides, Supor continues to
promote and further deepen the development strategy for tier-3 and 4 markets, strengthen and promote comprehensive cooperation
with E-commerce platforms among the O2O channel in lower-tier cities, and give full play to the advantages of medium- and high-end
product differentiation and agency stability with a view to creating new growth points of the Company in the tier-3 and 4 markets.
In terms of export business, due to geopolitical instability such as Russia-Ukraine War and high level of inflation among overseas
countries, the demand of overseas markets such as Europe and America declined in the first half of 2022. In order to actively respond
to the instable international market, the main customers for export sales take active control on the inventory level of local channels,
therefore the Company's export business has declined after two consecutive years of rapid growth.
II. Core competitiveness analysis
1. Outstanding product innovation capability
As a company long time devoted to R&D, manufacturing and sales of open fire cookware and small domestic appliances, Supor
has an acute observation and scientific research of the needs of Chinese consumers and has developed a systematic innovation system
to ceaselessly launch new products in the market.
After 1994 when Supor launched the domestic first safety pressure cooker, the Company also launched the first electric rice cooker
with ceramic crystal liner in 2005, pioneered the uncoated stainless iron pan technology in 2007, successfully introduced SEB thermo-
spot patented technology in 2009, launched the industrial first IH electric rice cooker in 2011, pioneered the spherical liner in 2013,
ceremoniously launched the industrial first steam IH electric rice cooker with spherical liner in 2015, innovated technology of electric
rice cooker liner and launched the Shallow Pot IH Rice Cooker in 2018 and launched the handy, lighter and healthier "Core Iron II"
wok, and the "Air-cooled Xpress electric rice cooker" with the rice cooked within half the time under the same quality in 2020. In 2021,
Supor rolled out the new-generation anti-corrosion and anti-perforation ti-authentic stainless steel wok and the oil-concentrated frying
pan that can make sunny side up eggs with a little oil. In terms of small domestic appliance, the Company has launched the industry's
first far-infrared IH electric rice cooker and high-end versatile multi-cooker, Supor Xiao C chef. In 2022, the ti-authentic uncoated wok
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
was launched, which adopted the first uncoated technology in the industry.
2. Well-developed distributor network
Supor has stable distributor teams, and maintained good cooperative relationship with them. The relatively high coverage rate and
density of its sales network ensure the uninterrupted supply of Supor products.
3. Strong R&D and manufacturing capacity of open fire cookware and small domestic appliance
Supor has built up six R&D production bases, respectively in Yuhuan City, Hangzhou City, Shaoxing City (Yuecheng District
and Keqiao District) in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam. In particular, the annual
production scale of Wuhan Base and Shaoxing Base ranked the top in the industry. The strong R&D power and the highly professional
R&D team provide a powerful guarantee for the quality and innovation capacity of Supor products.
4. Synergistic effect of integration with SEB
Since 2006, the Company has started to establish strategic cooperation relationship with SEB which owns a long history of more
than 160 years with leading market shares of cookware and small domestic appliances worldwide. The powerful cooperation between
Supor and SEB has brought stable export orders to the Company, and increased its overall business size and manufacturing capacity.
Meanwhile, the cooperation in aspects of R&D and management will continuously enhance the core competitiveness of the Company.
5. Professional advantage of multiple brands and varieties in kitchen field
In addition to Supor brand, the Company also introduced a lot of high-end brands under SEB, such as WMF, LAGOSTINA,
KRUPS and TEFAL so as to fully cover the high-end brands in kitchen field. The Company's open fire cookware and small domestic
appliances rank the first class nationwide. It also explores new varieties actively such as kitchen & electric appliance and kitchen
utensils. The Company has formed its special competition advantages over other rivals due to its layout of multiple brands and varieties
in kitchen field.
III. Main Business Analysis
Overview
During the reporting period, the Company achieved an operating income of RMB10,323,979,744.82, representing a year-on-year
decrease of 1.05%. The Company realized a total profit of RMB1,252,951,332.99, representing a year-on-year growth of 12.42%; The
earnings per share is RMB1.155 with 8.35% year-on-year growth. The revenue from main business was RMB10,256,439,431.57, a
decrease of RMB125,500,311.45 or 1.21% compared with the same period of last year. The main business cost was
RMB7,622,713,387.19, a decrease of RMB72,446,623.05 or 0.94% compared with the same period of the last year. The gross margin
of main business was 25.68%, decreasing by 0.20% compared with the same period of the last year. Among them, the realized revenue
from the main business of cookware was RMB3,066,665,527.99, a decrease of 0.39% on a year-on-year basis; the realized revenue
from the main business of electric appliance was RMB7,174,700,594.40, a decrease of 1.60% on a year-on-year basis. The realized
revenue from the main business of domestic sales was RMB7,419,891,762.28, an increase of 6.54% on a year-on-year basis. The
revenue from the main business of foreign trade was RMB2,836,547,669.29, a decrease of 16.99% on a year-on-year basis.
Changes of main financial data in the same period
Unit: RMB
Increase /
This reporting Same period last
decrease Reason of change
period year
YoY (%)
Operating income 10,323,979,744.82 10,433,875,893.62 -1.05%
Operating cost 7,670,449,954.61 7,725,851,457.97 -0.72%
Sales expense 1,078,585,004.10 1,195,543,704.82 -9.78%
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Administrative expense 188,658,026.76 214,014,738.06 -11.85%
Mainly due to the increase in interest
Financial expense -40,815,354.68 -4,600,114.71 -787.27% revenue from bank deposits and exchange
gains during the reporting period.
Income tax expense 319,256,554.10 250,485,268.05 27.46%
R&D investment 194,481,803.42 192,490,424.34 1.03%
Mainly due to the increase in cash from
sales of commodities and services
Net cash flows from operating
1,308,844,866.33 300,430,763.45 335.66% provided in the cash inflow from
activities
operating activities in the reporting
period.
Mainly due to the increase in cash
Net cash flows from investing recovery from investment in financial
883,025,051.67 354,213,147.88 149.29%
activities products in cash inflow from investing
activities during the reporting period.
Net cash flows from financing
-1,639,170,531.90 -1,305,486,628.95 -25.56%
activities
Net increase in cash and cash Mainly due to the increase in operating
564,870,879.41 -651,828,253.43 186.66%
equivalents cash inflow.
Significant change of profit structure or profit resource in the reporting period
□ Applicable √ Not-applicable
No significant change of profit structure or profit resource in the reporting period
Contents of operating income
Unit: RMB
This reporting period Same period last year Increase /
decrease
Percentage to total Percentage to total
Amount Amount YoY (%)
operating income operating income
Total operating income 10,323,979,744.82 100% 10,433,875,893.62 100% -1.05%
By Industry
Cookware 3,066,665,527.99 29.70% 3,078,561,410.93 29.51% -0.39%
Electric appliances 7,174,700,594.40 69.50% 7,291,006,353.18 69.87% -1.60%
Others 82,613,622.43 0.80% 64,308,129.51 0.62% 28.47%
By Products
Cookware and utensils 3,066,665,527.99 29.70% 3,078,561,410.93 29.51% -0.39%
Cooking appliances 4,588,882,638.90 44.45% 4,584,107,417.54 43.93% 0.10%
Food processor appliances 1,568,135,937.20 15.19% 1,783,982,127.91 17.10% -12.10%
Other household electric
1,100,295,640.73 10.66% 987,224,937.24 9.46% 11.45%
appliances
By Areas
Domestic sales 7,457,451,182.53 72.23% 7,016,634,762.03 67.25% 6.28%
Export sales 2,866,528,562.29 27.77% 3,417,241,131.59 32.75% -16.12%
Note: "Others" by industry, "Other household electric appliances" by product, and region-based exceptionally include other business
14
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
incomes, the same below.
The Company's industry, products or areas with operating incomes or operating profits occupying more than 10%
Applicable □Not-applicable
Unit: RMB
Increase /
Increase / Increase /
decrease YoY
Gross decrease YoY decrease YoY
Operating income Operating cost (%) for total
margin (%) for total (%) for gross
operating
operating cost margin
income
By Industry
Cookware 3,066,665,527.99 2,236,943,528.87 27.06% -0.39% 1.21% -1.14%
Electric appliances 7,174,700,594.40 5,374,982,284.90 25.08% -1.60% -1.84% 0.18%
By Products
Cookware and utensils 3,066,665,527.99 2,236,943,528.87 27.06% -0.39% 1.21% -1.14%
Cooking appliances 4,588,882,638.90 3,414,192,626.73 25.60% 0.10% 0.51% -0.30%
Food processor appliances 1,568,135,937.20 1,244,567,449.91 20.63% -12.10% -10.17% -1.70%
Other household electric
1,100,295,640.73 774,746,349.10 29.59% 11.45% 5.67% 3.86%
appliances
By Areas
Domestic sales 7,457,451,182.53 5,268,830,298.87 29.35% 6.28% 9.94% -2.35%
Export sales 2,866,528,562.29 2,401,619,655.74 16.22% -16.12% -18.12% 2.06%
Note: In this reporting period, the overall gross margin of the Company decreased by 0.25 percentage points on a year-on-year basis.
It was mainly due to the implementation of New Revenue Standards in the current period, which reclassifies transportation expenses
related to the sales of commodities from "selling expenses" to "operating costs". According to the statistics before reclassification, the
overall gross margin of the Company increased by 2.95 percentage points on a year-on-year basis, which mainly due to channel
transformation and sales structure optimization.
The Company's main business data adjusted based on the standard at the end of the latest reporting period if statistical standard for
such data was adjusted during the reporting period
□Applicable Not-applicable
Descriptions of cause with above 30% change of relevant data on a YoY basis
□Applicable Not-applicable
IV. Analysis on Non Main Business
□Applicable Not-applicable
V. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: RMB
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
The end of the reporting period End of last year
Increase/d
Percentage Percentage ecrease in Cause of change
Amount to total Amount to total proportion
assets assets
Mainly due to the increase in cash
generated from the Company's
Monetary capital 3,479,946,026.90 27.90% 2,654,052,417.47 19.09% 8.81%
business operations during the
reporting period.
Mainly due to the decrease of export
Accounts
2,151,142,929.18 17.25% 2,716,945,985.33 19.55% -2.30% accounts receivable at the end of the
receivable
reporting period.
Mainly due to the accelerated
inventories turnover and reasonable
Inventories 2,280,319,255.52 18.28% 3,096,517,055.33 22.28% -4.00%
control of inventories during the
reporting period.
Long-term equity No significant change in the
65,019,578.66 0.52% 65,600,611.64 0.47% 0.05%
investment reporting period.
No significant change in the
Fixed assets 1,278,054,718.16 10.25% 1,291,902,992.54 9.29% 0.96%
reporting period.
Construction in No significant change in the
21,688,231.49 0.17% 26,482,779.31 0.19% -0.02%
progress reporting period.
Right-of-use No significant change in the
190,934,091.71 1.53% 195,528,644.13 1.41% 0.12%
asset reporting period.
Mainly due to the decrease in
Contract advance receipts from some
470,023,043.75 3.77% 893,741,863.21 6.43% -2.66%
liabilities distributors of its subsidiaries during
the reporting period.
No significant change in the
Lease obligation 152,646,041.84 1.22% 157,420,210.81 1.13% 0.09%
reporting period.
Mainly due to the increase in the
Receivables amount of bank acceptance bills of
232,348,975.14 1.86% 3,312,225.62 0.02% 1.84%
financing subsidiaries at the end of the
reporting period.
Mainly due to the maturity and
Other current
659,654,342.93 5.29% 2,055,027,382.63 14.78% -9.49% delivery of term deposit investment
assets
at the end of the reporting period.
Mainly due to the investment
Other debt increase in negotiable certificate of
586,813,657.54 4.71% 298,191,205.49 2.15% 2.56%
investments deposit at the end of the reporting
period.
2. Main overseas assets
□Applicable Not-applicable
3. Assets and liabilities measured at the fair value
Applicable □Not-applicable
Unit: RMB
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Profit and loss
Accumulated Amount of
from fair Impairment purchasing Amount of
fair value
Opening value changes loss of the sales of the Other Ending
Item changes
current
of the
balance in the included into current changes balance
period current
reporting equity period
period
period
Financial assets
1. Transactional
financial assets
180,312,742.3 220,000,000. 183,197,205. 220,550,529.
(excluding 3,434,993.03
1 00 49 85
derivative financial
assets)
2. Receivables 229,036,749. 232,348,975.
3,312,225.62
financing 52 14
3. Other debt 298,191,205.4 281,908,816. 586,813,657.
6,713,635.47
investments 9 58 54
481,816,173.4 501,908,816. 183,197,205. 235,750,384. 1,039,713,16
Total 3,434,993.03
2 58 49 99 2.53
Financial liabilities 0.00 0.00
Content of other changes
Receivables financing Supor discounted or transferred by endorsement part of bank acceptances before maturity as required by its daily
fund management and the business mode for such bank acceptance related to management was aimed for acquisition of contact cash
flow and for sales. Therefore, bank acceptance was classified as financial assets measured at the fair value with their changes included
into other comprehensive incomes.
Are there any major changes about the valuation attribute of Company's main assets in the reporting period?
□Yes No
4. Restrictions of assets and rights by the end of the reporting period
For details, see "52. Assets with title or use right restrictions" of "VII. Notes to items of consolidated financial statements" in Section
X "FINANCIAL STATEMENT".
VI. Analysis on Investment
1. General conditions
□Applicable Not-applicable
2. Significant equity investment to be acquired in the reporting period
□Applicable Not-applicable
3. Significant non-equity investment to be handled in the reporting period
□Applicable Not-applicable
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
4. Financial asset investment
(1) Securities investment
□Applicable Not-applicable
There was no securities investment in the Company in the reporting period.
(2) Derivative products investment
Applicable □Not-applicable
Unit: RMB10,000
Amount of impairment provision
Proportion of ending investment
assets at the end of the reporting
Original amount of derivative
amount to the Company's net
Opening investment amount
Purchase amount during the
Purchase amount during the
Name of derivative product
Ending investment amount
Type of derivative product
Connected transaction
Actual
product investment
investment handler
Correlated relation
reporting period
reporting period
profit and
investment
loss
(if any)
period
Start Expiry
amount
date date
during the
reporting
period
Foreign
14,790.5 January June 30, 14,790. 80,392. 59,671. 35,51
Bank None No exchange 0.00 5.09% -129.17
5 1, 2022 2022 55 27 22 1.60
derivatives
14,790.5 14,790. 80,392. 59,671. 35,51
Total -- -- 0.00 5.09% -129.17
5 55 27 22 1.60
Source of derivative product
Own fund
investment fund
Proceedings (if applicable) Not applicable
Disclosure date of the
announcement of the Board of
April 1, 2022
Directors on the approval of
derivatives investment (if any)
In order to hedge the exchange rate risk in operating activities, reduce the the risks arising from
fluctuations in exchange and interest rates, and make full use of the hedging function of foreign
exchange derivatives trading business, the Company has conducted foreign exchange derivatives
trading business according to business scale, term and currency of the Company.
(I) Risks
1. Market risk: loss may be caused by price fluctuation of foreign exchange derivatives that was
Description of risk analysis and
control measures for derivative resulted from the fluctuation of market price such as target interest rate and exchange rate.
positions during the reporting 2. Internal control risk: foreign exchange derivatives trading business is highly specialized and
period (including but not limited
complex, which may cause risks due to imperfect internal control mechanism.
to market risk, liquidity risk,
credit risk, operating risk, legal 3. Liquidity risk: the risk that a transaction cannot be completed due to insufficient market liquidity.
risk, etc.) 4. Performance risk: there is a risk of default caused by the failure to perform the contract.
5. Legal risk: risks may be caused due to changes in relevant laws or violation of relevant laws by
counterparties, prohibiting the execution of the contract.
(II) Risk control measures
1. Clear principle: foreign exchange derivatives trading shall be based on the principle of hedging,
to avoid the risk brought by exchange rate fluctuation to the greatest extent, and adjust the
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
operation strategy in time in combination with the market situation, so as to improve the hedging
effect.
2. System construction: the Company has established the internal control system for the
Administration of Foreign Exchange Derivatives Trading Business, which clearly defines the
scope of authorization, approval procedures, key points of operation, risk management and
information disclosure of derivatives transactions, and can effectively regulate foreign exchange
derivatives transactions and control the risks of foreign exchange derivatives transactions.
3. Product selection: comparative analysis shall be conducted for potential products. The foreign
exchange derivatives that are most suitable for the Company's business background, strong
liquidity and controllable risk shall be selected for trading. The Company uses forward as a tool
for general hedging and swap contracts for rolling hedging.
4. Counterparty management: carefully select the counterparties engaged in foreign exchange
derivatives business. The Company only conducts foreign exchange derivatives trading business
with large-scale commercial banks with legal qualifications and other foreign exchange institutions
to avoid possible default risks and legal risks.
5. Dedicated team: the Company's management representative, treasury department, the financial
sharing service center, the audit department, the securities department and other relevant
departments set up a special working team to be responsible for the risk assessment, trading
execution, booking and monitoring. The working team shall take emergent measures to stop loss
when the market changes significantly.
Changes in market prices or
product fair values of invested
derivatives during the reporting
The amount of profit and loss incurred during the reporting period of foreign exchange derivatives
period (The analysis of the fair
value of derivatives shall be made was RMB1.2917 million; It was obtained by using tools for profit and loss of delivery and
with the disclosure of specific evaluating the spot and forward foreign exchange quotations of banking institutions.
methods used, related
assumptions and parameter
settings)
Description of whether the
accounting policies and specific
accounting principles for the
Company's derivatives during the
Not applicable
reporting period have changed
significantly compared with that
during the previous reporting
period
Independent directors' special The independent directors have issued independent opinions on Proposal on Foreign Exchange
opinions on the Company's Derivatives Trading. For details, please refer to the Independent Opinions of Independent Directors
derivatives investment and risk
on Related Matters disclosed on http://www.cninfo.com.cn on April 1, 2022.
control
5. Conditions of the use of the raised funds
□Applicable Not-applicable
No situation of using raised capital of the company during the reporting period
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
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 Main Registered Total Operating Operating
Company name Net assets Net profit
type business capital assets income profit
Wuhan Supor RMB91.16 1,205,756, 426,358,851. 1,578,669,08 62,048,490.8 46,353,243.6
Subsidiary Cookware
Cookware Co., Ltd. million 642.84 62 1.43 8 3
Zhejiang Supor
Electrical Appliance Electrical RMB133.6 1,306,295, 475,701,235. 1,892,959,65 116,003,891. 84,616,558.3
Subsidiary
Manufacturing Co., product 971 million 229.02 82 7.36 58 8
Ltd.
Zhejiang Shaoxing
SDA, large
Supor Domestic RMB610 2,955,358, 2,347,633,03 3,042,695,02 566,003,878. 415,955,345.
Subsidiary kitchen
Electrical Appliances million 411.79 1.44 9.89 98 47
appliances
Co., Ltd.
Acquiring/disposing subsidiary during the reporting period
□Applicable Not-applicable
IX. Structural Subject under the Company's Control
□Applicable Not-applicable
X. Risks and Countermeasures
1. Risk from macroeconomic fluctuation
In the first half of 2022, the growth for domestic macroeconomic has slowed down significantly influenced by the international
macroeconomic and a new round of pandemic. Since May, as the situation of COVID-19 improved, domestic consumption has
gradually recovered. Although the overall scale of cookware and small domestic appliance industry in which the Company is located
has declined, the government has promoted the growth of household appliance consumption through a series of policies and measures
such as issuing consumer coupons and subsidies. The contribution of domestic demand is expected to pick up in the second half of the
year.
Outlook for the second half, there are still downside risks in the domestic economic. In the face of the potential macroeconomic
fluctuation risks, Supor will continue to adhere to its strategies, actively develop new categories and new businesses, expand market
segments and foster new growth points.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
In the first half of 2022, the comsuption end faced huge pressure influenced by Russia-Ukraine War and high level of inflation
among overseas countries. Foregin clients struggled to deal with and even strictly control their inventory. Outlook for the second half,
Supor will continue to promote innovation pf new products, enhance efficiency and reduce cost to conquer the gloomy international
market given that the uncertainty is still remaining,
2. Risk from price fluctuations of production factors
In the first half of 2022, the prices of main raw materials of cookware and small domestic appliances such as aluminum, copper,
stainless steel and plastics dropped slightly, but they remained at a high level. In order to cope with the risks caused by the price
fluctuations of production factors, Supor is actively improving the internal labor productivity and pushing to implement the lean
projects to reduce the negative impacts caused by the rise in price of raw materials on the production costs. 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 intensified market competitiveness
As the operating cost of enterprise rises, industry brand concentration will be further increased, and there is the risk of intensified
market competition in the field of cookware and small domestic appliances. In order to seize market share, high-end brand will continue
to expand sales channel and regulate product and price strategy, and some high-end brand will enter shopping mall and supermarket
channels to participate in high-end market competition, which will further intensify the competitiveness of industry.
The Company will keep on insisting in the strategy to take product innovation as the core, and keep on improving innovation
ability to create more products with high additional value and high margin, giving full play to the competitive edge of multiple brands
and multiple product categories of Supor, and continue to improve market shares and profitability of Supor.
4. Product export and exchange loss caused by exchange rate fluctuation
The current fluctuation in foreign exchange is possible to bring negative influence.
The Company has implemented the RMB settlement of export business to SEB, with low exchange risk.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION IV CORPORATE GOVERNANCE
I. Annual shareholders' meeting and interim shareholders' meeting held in the reporting
period
1. Shareholders' meeting in the Reporting Period
Proportion of
Session Meeting type participated Convening date Date of disclosure Meeting resolution
investors
For details, please refer to the
The Annual Announcement of Resolution of
Annual
General Meeting the Annual General Meeting of
Shareholders' 8.19% April 25, 2022 April 26, 2022
of Shareholders for Shareholders for 2021 Fiscal
Meeting
2021 Fiscal Year Year (2022-025) disclosed on
http://www.cninfo.com.cn
2. Interim shareholders' meeting 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 directors, supervisors and senior executives of the Company have not been changed within the report period. As for details, please
see 2021 Annual Report.
III. Profit distribution and conversion of conversion from capital reserves to share capital
during the reporting period
□Applicable Not-applicable
The Company has planned not to distribute cash dividends or bonus shares semiannually, and not to convert capital reserve into share
capital.
IV. Implementation of Company's equity incentive plan, employee equity holding plan or other
employee incentive measures
Applicable □Not-applicable
1. Equity incentive
1. On January 6 2022, the 11th Session of the Seventh Board of Directors and 10th Session of the Seventh Board of Supervisors reviewed
and adopted the Proposal on Grant of Restricted Stock to Incentive Objects, agreeing to grant 1,209,500 shares of Restricted Stock to
totally 293 Incentive Objects. Independent Directors have addressed independent opinions on above Proposals.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
For details, please refer to the Announcement of Grant of Restricted Stock to Incentive Objects disclosed on Securities Times, China
Securities Journal, Securities Daily, and http://www.cninfo.com.cn dated January 7, 2022.
2. On January 28, 2022, the Company disclosed the Announcement of Completion of Registration for Grant of Restricted Stock on
Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn. The Restricted Stock of the Company has
been registered under the name of all incentive objects on January 27, 2022.
3. On March 31, 2022, the 12th Session of the Seventh Board of Directors and 11th Session of the Seventh Board of Supervisors reviewed
and adopted the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of six incentive objects due
to their resignation, the Company has decided to repurchase and cancel 24,000 shares of Restricted Stock at the price of RMB1.00 per
share. The proposals were reviewed and approved at the Annual General Meeting of Shareholders for 2021 Fiscal Year held on April
25, 2022. The Company has repurchased and canceled 24,000 shares of Restricted Stock at the price of RMB1.00 per share and paid
totally RMB24,000 to the above resigned incentive objects. After confirmed by Shenzhen Branch of CSDCC, the Company completed
purchase and cancellation work on June 29, 2022.
For detailed contents, see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of
Completion of Repurchase and Cancellation a Part of Restricted Stock disclosed on Securities Times, China Securities Journal,
Securities Daily, and http://www.cninfo.com.cn dated April 1, 2022 and June 30, 2022 respectively.
2. Implementation of employee equity holding plan
□Applicable Not-applicable
3. Other employee incentive measures
□Applicable Not-applicable
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
I. Significant environmental protection problems
Do the listed company and its subsidiaries belong to key pollutant discharging unit posted by the environmental protection department?
Yes □No
Name of
discharge ports
Executive Total
Excessive
Number of
discharge
Name of the main Total
Discharge Distribution of Discharge pollutant discharge
Company or pollutant or discharge
mode discharge ports concentration discharge amount
subsidiary specific amount
standard checked
pollutant
"Quasi-IV"
Manage standards in the
COD Wastewater 30mg/L 3.809t 8.662t/a
after Table of Effluent
discharge port
pollutants Indexes and
of the
are treated 1 Standard Limits
wastewater
up to for Urban Sewage
Ammoniacal standards station in plant
1.5mg/L Treatment 0.19t 0.433t/a
nitrogen area
Zhejiang Stations in
Supor Co., Taizhou"
Ltd. Limitation
requirements in
SO2 ＜3 mg/m the 0.476t 3.06t/a
Manage in
Comprehensive
an No.1 and No.6
15 Air Pollution
organized workshops
Control Program
manner
NOx ＜8 mg/m for Industrial 4.45t 14.66t/a
Furnaces (HDQ
[2019] No.56)
Discharge
Standard of
Pollutants for
COD 13.007mg/l Municipal 4.59t 14.6t/a
Wastewater
Treatment Plant
(GB18918-2002)
General
Indirect Indirect
1 discharge port
discharge Discharge for
of wastewater
Zhejiang Emission
Supor Limitation of
Ammoniacal
Electrical 0.140mg/l Nitrogen and 0.049t 0.73t/a
nitrogen
Appliance Phosphorus for
Manufacturi Industrial
ng Co., Ltd. Wastewater
(DB33/887-2013)
Spraying and
Emission
drying exhaust
Standard of Air
Manage in gas discharge
Pollutants for
an port; Spraying 11.493mg/
VOCs 3 Industrial Surface 0.792t 2.067t/a
organized exhaust gas m
Coating
manner discharge port;
(DB33/2146-
Exhaust gas
2018)
discharge port
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
on plastic None
workshop
Integrated
Wastewater
COD 106.73mg/L Discharge 36.29t 69.63t/a
Standard
(GB8978-1996)
Indirect
Discharge for
Emission
Limitation of
Ammoniacal
Zhejiang Wastewater 8.38mg/L Nitrogen and 2.85t 7.43t/a
nitrogen Manage
Shaoxing discharge port Phosphorus for
after
Supor of the Industrial
pollutants 1
Domestic wastewater Wastewater
are treated
Electrical station in plant (DB33/887-2013)
up to
Appliances area Wastewater
standards
Co., Ltd. Quality Standards
Total for Discharge to
26.85mg/L 9.13t 15.07135t/a
nitrogen Municipal Sewers
(GB/T 31962-
2015)
Emission
Standard of
Total nickel 0mg/L Pollutants for 0t 0.000022t/a
Electroplating
(GB 21900-2008)
Under Integrated
intermitten Wastewater
COD t discharge, 14.19mg/L Discharge 3.31t 19.38t/a
the flow is Standard
Wastewater
unstable (GB8978-1996)
discharge port
and
of the sewage
irregular 1 Wastewater
Wuhan treatment
during Quality Standards
Supor station in plant
Ammoniacal discharge, for Discharge to
Cookware area 0.41mg/L 0.10t 1.94t/a
nitrogen but it does Municipal Sewers
Co., Ltd.
not belong (GB/T 31962-
to impact 2015)
discharge
Integrated
Manage in Spraying waste
Emission
an gas disposal 0.3103mg/N
VoCs 1 Standard of Air 1.02t 12.16t/a
organized and discharge m3
Pollutants
manner port
(GB16297-1996)
Construction and operation of pollution prevention facilities
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 municipal wastewater pipes. At the same time, the Company has reclaimed water reuse facilities that can arrange water
treatment plan according to water quality. The production wastewater is first treated at the sewage treatment station and then disposed
through the reclaimed water system for production. After that, part of the sanitary sewage after combined treatment enters municipal
sewage network.
During the reporting period, through on-line monitoring by authorities, the Company's corresponding pollution prevention and
control facilities operate normally and meet the emission standards.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Environmental impact assessment of construction projects and other administrative permissions for environmental protection
During the reporting period, the subsidiary, Shaoxing Supor, implemented the technical transformation project with an annual
output of 18 million sets of smart domestic appliance in the existing plant area. The project complies with the national and local oriented
development requirements for the relevant industry, and it also complies with the overall urban planning and land utilization planning
of Shaoxing City and the partitioned control and management plan of "Three Lines and One List" for the ecological environment of
Yuecheng District, Shaoxing City. The site election of the project is rational, and the project clean production measures are feasible,
after taken the pollution prevention and control measures, the production pollutants can all meet the discharging standards, the total
amount is under control with little implact on surrounding air environment, water environment, sound environment and other
environmental protected objects. The quality of ambient air, surface water, underground water, acoustic environment in the
surroundings of the project meet the corresponding functional requirements. Pursuant to the Notice about Enhancement on
Environmental Impact Assessment Management with Environmental Quality Improvement as the Core (HHP [2016] No.150), the
selected project site is not within the boundary line of ecological protection, and after effective governance measures are implemented
for the project, the environmental quality meets relevant requirements. Therefore, the project development meets the requirements of
"Three Lines and One List" (as set out in HHP [2016] No.150). To sum up, the project complies with the various principles of
environmental protection approval, and the implementation of the project on the existing site is feasible from the perspective of
environmental protection.
Environmental emergency plan
In order to establish and perfect the emergency mechanism of environmental events, improve the ability of enterprises to deal
with environmental events, prevent the occurrence of abrupt environmental events, and quickly and effectively carry out personnel
evacuation, cleaning and purification, environmental monitoring, pollution tracking, information disclosure, ecological environmental
impact assessment and restoration actions upon occurrence of environmental events, reduce the accident losses and social hazards to
the minimum, maintain social stability, safeguard public health and property security, protect the security of local environment and
water resources, and promote the comprehensive, coordinated and sustainable development of the society, the Company, taking into
account its actual production and operation situation, should formulate the emergency plan for abrupt environmental events on the
basis of earnest identification and evaluation of potential major hazards, accident types, occurrence possibility, accident consequences,
and degree of severity.
Currently, the Company has completed the preparation, review & approval and filing of the emergency plan for abrupt
environmental events. The Company adheres to the principles of "Prevention Orientation, Hazard Mitigation, Centralized Leadership,
Hierarchal Responsibility, Self-rescue Machanism, Localized Management, Resource Integration, Linkage Disposal", and carries out
the work in relation to the emergency plan for abrupt environmental events.
Environmental monitoring scheme
The Company has formulated the environment self-monitoring plan in accordance with relevant national laws and regulations,
and which includes: (1) Waste gas pollution source monitoring: Sampling points are set up at all discharge ports of waste gases, and
monitoring of waste gases is conducted on a quarterly/semi-annually basis and from time to time, based on different monitoring indexes;
(2) Wastewater pollution source monitoring: Monitoring and sampling are conducted on a monthly basis at the inlet and outlet of the
wastewater treatment station, in order to monitor the variation of wastewater pollution source and the up-to-standard discharge of the
wastewater treated by the wastewater treatment station. The monitoring items include: suspended matters, five-day biochemical oxygen
demand, anionic surfactant, total phosphorus, petroleum, etc.
Administrative penalty received within the reporting period due to environmental problems
None
Other environmental information that shall be made public
None
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Measures to reduce carbon emissions during the reporting period and effects
□Applicable Not-applicable
Other environmental protection related information
None
II. Social responsibilities
During the reporting period, the Company continued to support rural schools in need in remote mountainous areas in the central
and western regions to improve their school-running conditions, and comprehensively improve the school-running ability of rural
schools by means of teacher training, online & offline education support, etc.
In the context of rural revitalisation and common prosperity, the Company proposed to "share a better life with every child",
hoping to leverage its industrial strengths to support rural primary schools to further develop into "schools suitable for rural children's
lives", and to promote the practice of future-oriented life education in schools to improve the quality of education.
During the reporting period, the Company donated RMB2 million to support the post-disaster reconstruction of Supor Primary
School in Yuanzhuang, Jun County, Henan Province, and it has completed the main construction of the teaching and dormitory
buildings, which are expected to be put into use in the autumn term this year. So far, Supor has donated 28 rural schools in the central
and western China. Among which, 14 Supor primary schools have introduced Ulight online livestreaming courses of art and foreign
language for public welfare. In addition, the Company has tried to use its own products for the public good, allowing rural children to
participate in the design of children's water cup products and giving them as gifts to over 3,000 mountainous rural children on Children's
Day.
In line with the requirements for labor education in primary and secondary schools advocated by the Ministry of Education, the
Company has been implementing future-oriented life education on a pilot basis with Wentao Primary School in Binjiang District,
Hangzhou, striving to be a model implemented in more urban and rural schools.
With the promotion of rural revitalization and common prosperity, the Company will closely keep up with the national policy in
the future. The Company will actively promote various public welfare actions in the areas of life education for children in mountain
villages and broaden their horizons among young people in mountain villages by taking the advantages of own business capabilities
and resources on the public welfare platform of Supor. Besides, we will unite more like-minded public welfare partners to work together
to contribute to the realization of better life and better society in remote regions.
27
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION VI SIGNIFICANT EVENTS
I. Commitments that were fulfilled in the reporting period and had not been fulfilled till the
end of the reporting period by actual controller, shareholder, related party, acquirer and the
Company
□Applicable Not-applicable
Commitments that were fulfilled in the reporting period and had not been fulfilled till the end of the reporting period by actual controller,
shareholder, related party, acquirer and the Company.
II. Non-operating occupation of capital of listed companies by controlling shareholders and
related parties
□Applicable Not-applicable
There was no non-operating occupation of capital of listed companies by controlling shareholders and related parties of the Company
during the reporting period.
III. Conditions of illegal external guarantee
□Applicable Not-applicable
The Company involves no illegal external guarantee during the reporting period.
IV. Employment and dismissal of certified public accountants
Has the semiannual financial statement been audited?
□Yes No
The semiannual report has not been audited.
V. Explanation of the Board of Directors and the Board of Supervisors on the "Non-standard
audit report"
□Applicable Not-applicable
VI. Description of Board of Directors for "Non-standard audit report" last year
□Applicable Not-applicable
VII. Bankruptcy or reorganization
□Applicable Not-applicable
There was no bankruptcy, reorganization or related matters in the Company in the reporting period.
VIII. Lawsuits
Significant litigations and arbitrations
□Applicable Not-applicable
There was no significant litigation and arbitration occurred in the reporting period.
28
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Other lawsuits
□Applicable Not-applicable
IX. Punishment and rectification
□Applicable Not-applicable
X. Integrity Status of the Company, controlling shareholder and actual controller
□Applicable Not-applicable
XI. Significant connected transactions
1. Connected transaction related to daily business
Applicable □Not-applicable
transaction (RMB10,000)
Market price of available
Reference for disclosure
Percentage to amount of
Contents of connected
Means of payments of
connected transaction
connected transaction
Amount of connected
Approved transaction
Exceeding approved
Pricing principle of
limit (RMB10,000)
Price of connected
Date of disclosure
same transaction
same transaction
limit or not
transaction
transaction
Type of
Connected Correlated
connected
party relation
transaction
Wuhan
Bank
Anzai Associated Purchase of Finished Contract
- 6,445.11 1.01% No transfer -
Cookware enterprise commodity products price
or notes
Co., Ltd.
Wuhan
Bank
Anzai Associated Purchase of Accesso Market
- 4,274.69 0.67% No transfer -
Cookware enterprise commodity ries price
or notes
Co., Ltd.
Same
controlling
GROUPE Bank
shareholder Purchase of Finished Contract
SEB - 456.96 0.07% No transfer -
with the commodity products price
EXPORT or notes
controlling
shareholder
Same
controlling
Bank
TEFAL shareholder Purchase of Accesso Market
- 556.48 0.09% No transfer -
S.A.S. with the commodity ries price
or notes
controlling
shareholder
Same Bank
LAGOSTI Purchase of Finished Contract
controlling - 219.49 0.03% No transfer -
NA S.P.A. commodity products price
shareholder or notes
Same
SEB
controlling
INTERNA Bank
shareholder Purchase of Accesso Market
TIONAL - 23.42 0.00% No transfer -
with the commodity ries price
SERVICE or notes
controlling
S.A.S.
shareholder
GROUPE Same Purchase of Accesso Market - 183.91 0.03% No Bank -
29
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SEB controlling commodity ries price transfer
MOULIN shareholder or notes
EX with the
controlling
shareholder
Same
controlling
Bank
shareholder Purchase of Accesso Market
ETHERA - 31.96 0.00% No transfer -
with the commodity ries price
or notes
controlling
shareholder
WMF Same Bank
Purchase of Finished Contract
GROUPE controlling - 1,238.73 0.19% No transfer -
commodity products price
GMBH shareholder or notes
WMF (HE
SHAN)
MANUFA
Same Bank
CTURIN Purchase of Finished Contract
controlling - 21.41 0.00% No transfer -
G commodity products price
shareholder or notes
COMPAN
Y
LIMITED
The
company
Supor Bank
controlled Purchase of Finished Contract
Group Co., - 0.75 0.00% No transfer -
by related commodity products price
Ltd. or notes
natural
person
Same Bank
SEB ASIA Sale of Finished Contract 259,959.
controlling - 25.18% No transfer -
LTD. commodities products price 08
shareholder or notes
Same Bank
SEB ASIA Sale of Accesso Contract
controlling - 264.81 0.03% No transfer -
LTD. commodities ries price
shareholder or notes
Same
controlling
Bank
S.A.S. shareholder Sale of Finished Contract
- 1,014.32 0.10% No transfer -
SEB with the commodities products price
or notes
controlling
shareholder
Same
controlling
Bank
S.A.S. shareholder Sale of Accesso Contract
- 49.54 0.00% No transfer -
SEB with the commodities ries price
or notes
controlling
shareholder
Same
controlling
Bank
TEFAL shareholder Sale of Finished Contract
- 577.16 0.06% No transfer -
S.A.S. with the commodities products price
or notes
controlling
shareholder
Same
controlling Bank
TEFAL Sale of Accesso Contract
shareholder - 781.05 0.08% No transfer -
S.A.S. commodities ries price
with the or notes
controlling
30
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
shareholder
Same
GROUPE controlling
Bank
SEB shareholder Sale of Finished Contract
- 1,172.99 0.11% No transfer -
MOULIN with the commodities products price
or notes
EX controlling
shareholder
The
company
Supor Bank
controlled Sale of Finished Market
Group Co., - 245.99 0.02% No transfer -
by related commodities products price
Ltd. or notes
natural
person
Zhejiang The
Nanyang company
Bank
Pharmace controlled Sale of Finished Market
- 21.67 0.00% No transfer -
utical by related commodities products price
or notes
Sales Co., natural
Ltd. person
Same
SEB
controlling
INTERNA Bank
shareholder Sale of Accesso Contract
TIONAL - 1,067.88 0.10% No transfer -
with the commodities ries price
SERVICE or notes
controlling
S.A.S.
shareholder
Wuhan
Bank
Anzai Associated Sale of Accesso Contract
- 1.19 0.00% No transfer -
Cookware enterprise commodities ries price
or notes
Co., Ltd.
Same Bank
LAGOSTI Sale of Finished Contract
controlling - 4.93 0.00% No transfer -
NA S.P.A. commodities products price
shareholder or notes
Same Bank
LAGOSTI Sale of Accesso Contract
controlling - 78.17 0.01% No transfer -
NA S.P.A. commodities ries price
shareholder or notes
Same Bank
IMUSA Sale of Finished Contract
controlling - 987.27 0.10% No transfer -
USA LLC commodities products price
shareholder or notes
Same Bank
IMUSA Sale of Accesso Contract
controlling - 1.73 0.00% No transfer -
USA LLC commodities ries price
shareholder or notes
WMF
Consumer Same Bank
Sale of Finished Contract
Goods controlling - 21.91 0.00% No transfer -
commodities products price
(Shanghai) shareholder or notes
Co, Ltd.
GROUPE
SEB
VIETNA Same Bank
Sale of Finished Contract
M JOINT controlling - 1,271.21 0.12% No transfer -
commodities products price
STOCK shareholder or notes
COMPAN
Y
GROUPE
Same Bank
SEB Sale of Accesso Contract
controlling - 1.11 0.00% No transfer -
VIETNA commodities ries price
shareholder or notes
M JOINT
31
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
STOCK
COMPAN
Y
GROUPE Same Bank
Sale of Finished Contract
SEB controlling - 828.11 0.08% No transfer -
commodities products price
CANADA shareholder or notes
GROUPE
Same Bank
SEB Sale of Accesso Contract
controlling - 278.51 0.03% No transfer -
ANDEAN commodities ries price
shareholder or notes
S.A.
282,081.
Total -- -- -- -- -- -- -- --
54
Details of large sales return Not applicable
Actual implementation of estimated total
amount of connected transaction by category During January to June of 2022, the total amount of connected transactions between
incurred during the reporting period in the Supor and SEB Group and its related parties was RMB 2,710,921,400.
report period (if any)
Reason for the big difference between
transaction price and market reference price Not applicable
(if applicable)
2. Connected transaction from the acquisition and sale of assets or equity purchase
□Applicable Not-applicable
There was no connected transaction from purchase and sales for assets or equity in the Company reporting period.
3. Connected transaction for co-investment abroad
□Applicable Not-applicable
There was no connected transaction for co-investment abroad in the Company reporting period
4. Connected creditor's rights and debts
□Applicable Not-applicable
There were no related creditor's rights and debts in the Company reporting period
5. Transactions with connected financial companies
□Applicable Not-applicable
There is no deposit, loan, credit granting or other financial business between the Company and the financial companies with association
relation, and the Company and the related party.
6. The transactions between the financial company controlled by the Company and related party
□Applicable Not-applicable
There is no deposit, loan, credit granting or other financial business between the finance companies controlled by the Company and
the related party.
32
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
7. Other important connected transactions
□Applicable Not-applicable
There were no significant connected transactions in the Company reporting period.
XII. Important contracts and performances
1. Trusteeship, contracting and lease
(1) Trusteeship
□Applicable Not-applicable
The Company has no trusteeship during the reporting period.
(2) Contracting
□Applicable Not-applicable
No contracting was made in the reporting period.
(3) Lease situation
Applicable □Not-applicable
Descriptions of related lease situation
For details, see "14. Right-of-use asset" and "25. Lease obligation" of "VII. Notes to items of consolidated financial statements" in
Section X "FINANCIAL STATEMENT".
Projects that bring profit and loss exceeding 10% of the Company's total profit amount in the reporting period.
□Applicable Not-applicable
During the reporting period, there are no leasing items which bring profits and losses to the Company of more than 10% of the total
profits during the reporting period.
2. Important guarantee
Applicable □Not-applicable
Unit: RMB10,000
External guarantee of the Company and its subsidiaries (excluding the guarantee of subsidiaries)
announcement related
guaranteed by related
Guaranteed amount
Actual guaranteed
Disclosure date of
Collateral (if any)
to the guaranteed
Whether it is
Counter-
Name of Actual
amount
amount
Guarantee guarantee Guarantee Fulfilled
party
guaranteed occurring
type condition period or not
object date
(if any)
The
On July 2021 - General July 2021
distributors
January 80,000.00 December 38,324.72 guarantee Cash Yes - June Yes No
meeting
22, 2021 2021 and pledge 2022
certain
33
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
requirements
in Supor
The
distributors January
January General
meeting December 2022 -
140,000.00 2022 - June 32,108.55 guarantee Cash Yes No No
certain 14, 2021 December
2022 and pledge
requirements 2022
in Supor
Total approved external Total actual external
guaranteed amount guaranteed amount
140,000.00 70,433.27
within the reporting within the reporting
period (A1) period (A2)
Total approved external Total balance of actual
guaranteed amount at the external guarantee at
220,000.00 21,919.74
end of the reporting the end of the reporting
period (A3) period (A4)
The Company's guarantee of subsidiaries
Actual guaranteed
Disclosure date of
Collateral (if any)
announcement
guaranteed by
related to the
Whether it is
related party
Guaranteed
Counter-
guaranteed
Name of Actual
amount
amount
amount
Guarantee guarantee Guarantee Fulfilled
guaranteed occurring
type condition period or not
object date
(if any)
Zhejiang
Shaoxing July 2021
April 1, July 2021- General
Supor 200,000.00 26,600.00 None None - February Yes No
2021 August 2021 guarantee
Housewares 2022
Co., Ltd.
Zhejiang
January
Shaoxing January
April 1, General 2022 -
Supor 200,000.00 2022 - April 24,081.50 None None No No
2021 guarantee October
Housewares 2022
2022
Co., Ltd.
Zhejiang
May 2022
Shaoxing
April 1, May 2022- General -
Supor 300,000.00 41,570.00 None None No No
2022 June 2022 guarantee December
Housewares
2022
Co., Ltd.
Total approved Total actual
guaranteed amount of guaranteed amount of
400,000 92,251.50
subsidiaries within the subsidiaries within the
reporting period (B1) reporting period (B2)
Total approved Total actual guarantee
guaranteed amount of balance of subsidiaries
700,000 65,651.50
subsidiaries at the end of at the end of the
the reporting period (B3) reporting period (B4)
Subsidiaries' guarantee of subsidiaries
Guaranteed amount
guaranteed amount
Actual guaranteed
Disclosure date of
Collateral (if any)
announcement
guaranteed by
related to the
Whether it is
related party
Counter-
Name of Actual
amount
Guarantee guarantee Guarantee Fulfilled
guaranteed occurring
type condition period or not
object date
(if any)
Zhejiang
Shaoxing July 2021-
April 1, General July 2021-
Supor 200,000.00 October 8,417.50 None None Yes No
2021 guarantee April 2022
Housewares 2021
Co., Ltd.
Zhejiang
January
Shaoxing April 1, January General
200,000.00 33,667.00 None None 2022 - No No
Supor 2021 2022 guarantee
July 2022
Housewares
34
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Co., Ltd.
Zhejiang
June 2022
Shaoxing
April 1, General -
Supor 300,000.00 June 2022 5,323.50 None None No No
2022 guarantee December
Housewares
2022
Co., Ltd.
Total approved Total actual
guaranteed amount of guaranteed amount of
0 47,408.00
subsidiaries within the subsidiaries within the
reporting period (C1) reporting period (C2)
Approved total
Total actual guarantee
guaranteed amount
balance of subsidiaries
towards the subsidiaries 0 38,990.50
at the end of the
at the end of the reporting
reporting period (C4)
period (C3)
Total guaranteed amount of the Company (namely the total of the first three items)
Approved total Total guaranteed
guaranteed amount in actual amount during
540,000.00 210,092.77
reporting period the reporting period
(A1+B1+C1) (A2+B2+C2)
Total approved Total actual guarantee
guaranteed amount at the balance at the end of
920,000.00 126,561.74
end of reporting period reporting period
(A3+B3+C3) (A4+B4+C4)
Proportion (%) of the actual total guaranteed
amount (that is A4+B4+C4) in the Company's net 18.16%
assets
Including:
Total guaranteed amount of shareholders, actual
0
controllers and related party (D)
Guaranteed amount provided for guaranteed objects
with a liability rate of assets of over 70% directly or 104,642.00
indirectly (E)
Excess of total guaranteed amount over 50% of net
0
assets (F)
Total guaranteed amount of the said three items
104,642.00
(D+E+F)
Description of the situation where the guarantee
liability has occurred within the reporting period or
there is evidence that it is possible to bear joint None
liability for repayment for the unexpired guarantee
contract (if any)
Descriptions for external guarantee provided
None
against the established procedures (if any)
Note: The 12th Session of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2021 Fiscal Year
reviewed and adopted the Proposal on Guarantee for Wholly-owned Subsidiary and Mutual Guarantee among Wholly-owned
Subsidiarie. The Company and its wholly-owned subsidiary would guarantee for wholly-owned subsidiaries with a total amount not
exceeding RMB 4 billion in 2022 fiscal year.
3. Entrustment of wealth management
Applicable □Not-applicable
Unit: RMB10,000
Amount of
Amount of entrusted
Source of entrusted Overdue amount impairment accrued
Specific type financial Undue balance
financial fund unclaimed from overdue
management
financial products
Bank financial products Own fund 30,000.00 22,000.00 0 0
Total 30,000.00 22,000.00 0 0
35
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
During the reporting period, financial products were purchased and the principal and income were recovered as follows:
For the short-term financial products purchased by the Company in first half of 2022, please refer to http://www.cninfo.com.cn
Announcement of Using Excessive Cash to Purchase Short-term Financial Products (2022-015), Announcement of Progress of Using
Excessive Cash to Purchase Short-term Financial Products (2022-024) and Announcement of Progress of Using Excessive Cash to
Purchase Short-term Financial Products (2022-041).
Specific description for high-risk entrusted finance with single significant amount, low security, poor liquidity and unguaranteed
principal
□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
4. Other important contracts
□Applicable Not-applicable
There were no other significant contracts involved in the Company in the reporting period.
XIII. Introduction for Other Important Matters
□Applicable Not-applicable
There were no other important matters in the reporting period.
XIV. Important Matter of the Company's Subsidiaries
□Applicable Not-applicable
36
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION VII CHANGES IN SHARE CAPITAL AND
PARTICULARS ABOUT SHAREHOLDERS
I. Changes in Share Capital
1. Changes in share capital
Unit: share
Increase/decrease in the
Before change After change
period (+ , -)
Share New Shares Converted
Proportion Others Subtotal Share number Proportion
number shares bonus capital
I. Restricted Outstanding
848,564 0.10% 1,007,259 1,007,259 1,855,823 0.23%
Shares
1. Shares held by the
0 0.00% 0 0 0 0.00%
State
2. Shares held by state-
0 0.00% 0 0 0 0.00%
owned legal entities
3. Shares held by other
848,564 0.10% 1,007,259 1,007,259 1,855,823 0.23%
domestic investors
Including: Shares held
0 0.00% 0 0 0 0.00%
by domestic legal entities
Shares held by
848,564 0.10% 1,007,259 1,007,259 1,855,823 0.23%
domestic natural persons
4. Shares held by foreign
0 0.00% 0 0 0 0.00%
capitals
Including: Shares held
0 0.00% 0 0 0 0.00%
by foreign legal entities
Shares held by foreign
0 0.00% 0 0 0 0.00%
natural persons
II. Non-restricted
807,829,912 99.90% -1,031,259 -1,031,259 806,798,653 99.77%
Outstanding Shares
1. RMB common shares 807,829,912 99.90% -1,031,259 -1,031,259 806,798,653 99.77%
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 808,678,476 100.00% -24,000 -24,000 808,654,476 100.00%
Reasons for share capital change
Applicable □Not-applicable
1. Top management of the Company unlocked 25% of the shares registered under their names on the last transaction date of the previous
year.
2. Totally 1,209,500 shares of Restricted Stock in 2021 Restricted Stock Incentive Plan have been registered under the name of 293
incentive objects on January 27, 2022.
3. On June 29, 2022, the totally 24,000 shares of restricted stock that have been granted to resigned incentive objects but have not been
37
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
unlocked from restriction in 2021 restricted stock incentive plan were repurchased and cancelled. Upon the repurchase and cancellation,
the Company's total share capital decreased from 808,678,476 to 808,654,476 shares.
Approval of change in stock
Applicable □Not-applicable
1. On January 6 2022, the 11th Session of the Seventh Board of Directors and the 10th Session of the Seventh Board of Supervisors
reviewed and adopted the Proposal on Grant of Restricted Stock to Incentive Objects, agreeing to grant 1,209,500 shares of Restricted
Stock to totally 293 Incentive Objects. The grant date for Restricted Stock is January 6, 2022. After confirmed by Shenzhen Branch of
CSDCC, the Restricted Stock in 2021 Restricted Stock Incentive Plan were registered under all incentive objects on January 27, 2022.
2. On March 31, 2022, the 12th Session of the Seventh Board of Directors and the 11th Session of the Seventh Board of Supervisors
reviewed and adopted the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of six Incentive
Objects due to their resignation, the Company has decided to repurchase and cancel 24,000 shares of Restricted Stocks at the price of
RMB1 per share. The proposal has been deliberated and approved during the Annual General Meeting of Shareholders for 2021 Fiscal
Year held on April 25, 2022. The Company has repurchased and canceled 24,000 shares of Restricted Stock at the price of RMB1 per
share and paid totally RMB24,000 to the above resigned incentive objects. After confirmed by Shenzhen Branch of CSDCC, the
Company completed purchase and cancellation work on June 29, 2022.
Transfer of shares changed
Applicable □Not-applicable
After confirmed by Shenzhen Branch of CSDCC, totally 1,209,500 shares of Restricted Stock in 2021 Restricted Stock Incentive Plan
were transferred and registered to the names of 293 incentive objects on January 27, 2022
Progress in the implementation of share repurchase
Applicable □Not-applicable
The Proposal on Public Shares Repurchase Plan was reviewed and adopted by the 12th Session of Seventh Board of Directors held on
March 31, 2022. To effectively protect the interests of shareholders, enhance investor confidence, and consider the Company's overall
financial situation, the Company planned to repurchase the Company's shares with self-owned capital for reducing registered capital
and implementing equity incentive plan. The Company would repurchase the Company's shares from secondary market through
concentrated competitive bidding. The maximum price for repurchasing shares shall not exceed RMB57.96 per share (adjusted to
RMB56.03 per share after Profit Distribution for 2021 Fiscal Year). The top limitation of shares to be repurchased will not exceed
16,173,570 shares and the bottom limitation of shares will not be lower than 8,086,785 shares. The valid duration of public shares
repurchase plan shall be within 12 months after the general meeting of shareholders having approved the Resolution on Public Shares
Repurchase Plan. The Company initiatly implementated the share repurchase plan on May 6, 2022. As of the end of the reporting
period, the Company has repurchased 1,095,000 shares accounting for 0.14% of the total share capital of the Company; at the highest
price of RMB54.00/share and lowest price of RMB50.75/share with the payment of RMB58,179,500 (excluding transaction cost).
The Proposal on Public Share Repurchase Plan was reviewed and adopted by the Annual General Meeting of Shareholders for 2021
Fiscal Year held on April 25, 2022 and the Repurchase Report on Public Shares was published on April 26, 2022. For detailed contents,
please see the Repurchase Report on Public Shares (Announcement No.: 2022-028), Announcement on Adjusting Share Price for Public
Shares Repurchase Plan (Announcement No.: 2022-035), Announcement of Initial Repurchase of Public Shares (Announcement No.:
2022-032) and Announcement on Progress of Public Shares Repurchase Plan (Announcement No.: 2022-033, 2022-036 and 2022-038)
disclosed on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn.
Progress in the reduction of shareholding of repurchased shares through auction
□Applicable Not-applicable
Influence of shares change on basic earnings per share and diluted earnings per share in the latest year and period and net assets per
share owned by the Company's ordinary shareholder and other financial indexes
38
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Applicable □Not-applicable
Totally 24,000 shares of Restricted Stock were repurchased and cancelled which creates minor influence on the earnings per share and
diluted revenue per share and creates no influence on the net asset value per share vested in common shareholders of the Company and
other financial indexes.
The other contents the Company thinks fit to disclose or the securities regulatory authority requires disclosing
□Applicable Not-applicable
2. Changes of Restricted Stock
Applicable □Not-applicable
Unit: share
Restricted Increased
Restricted outstanding outstanding Restricted
outstanding stocks stocks outstanding
Name Restriction reason Date of unlocking restriction
stocks at unlocked in unlocked in stocks at
period-begin the reporting the reporting period-end
period period
Top management of the Company
Locked stocks of top unlocked 25% of the shares registered
Su Xianze 486,136 121,534 364,602
management under their names on the last
transaction date of the previous year.
Top management of the Company
Locked stocks of top unlocked 25% of the shares registered
Xu Bo 173,737 43,434 130,303
management under their names on the last
transaction date of the previous year.
Top management of the Company
Locked stocks of top unlocked 25% of the shares registered
Ye Jide 52,191 13,048 39,143
management under their names on the last
transaction date of the previous year.
Before November 19, 2023, 25% of
Locked stocks of top
the total shares can be unlocked each
Su Ming-Jui 136,500 225 136,275 management
year. All the shares held after the
(resignation)
above date will be unlocked.
Totally 1,209,500 shares of Restricted
Restricted Stock of Stock in 2021 Restricted Stock
equity incentive, of Incentive Plan were transferred and
which the Company registered to 293 incentive objects on
repurchased and January 27, 2022. The above
Incentive
cancelled 24,000 Restricted Stock will be unlocked in
objects of
shares of Restricted two phases after 24 months from the
2021 Equity 0 24,000 1,209,500 1,185,500
Stock granted to the date of completion of grant
Incentive
resigned incentive registration with each phase having a
Plan
objects that had not 50% unlocking ratio. The first phase
yet reached the is expected to be unlocked on January
conditions for release 27, 2024; and the second phase is
of Restricted Stock. expected to be unlocked on January
27, 2025.
Total 848,564 202,241 1,209,500 1,855,823 -- --
II. Security Offering and Listing Information
□Applicable Not-applicable
III. Number of Shareholders of the Company and Share-holding Conditions
Unit: share
39
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Total number of preferred shareholder whose
Total number of common shareholders at the
16,005 voting right is recovered at the end of 0
end of the reporting period
reporting period (if any) (refer to Note 8)
Information on shareholders holding more than 5% stocks or information on top 10 shareholders
Pledge, labeling,
Number of Number of non-
Number of Increase/decrease or freezing
Shareholding restricted restricted
Name Nature ratio
shares held at in the reporting
outstanding outstanding
Status
Share
period-end period of
shares shares number
shares
SEB INTERNATIONALE Foreign
82.44% 666,681,904 0 0 666,681,904
S.A.S legal entity
Hong Kong Securities Foreign
8.43% 68,164,438 3,696,054 0 68,164,438
Clearing Company Ltd. legal entity
Ningbo Bank-Zhongtai
Xingyuan Value-selected
Flexible Complex Others 0.70% 5,689,830 5,115,178 0 5,689,830
Securities Investment
Funds
Fidelity Mutual Fund &
Foreign
Investment Management - 0.31% 2,529,922 -1,264,800 0 2,529,922
legal entity
Customers' Capital
China Merchants Bank-
Zhongtai Yuheng Value-
selected Flexible Complex Others 0.27% 2,192,383 1,892,683 0 2,192,383
Securities Investment
Funds
Foreign
BNP Paribas - Own Funds 0.27% 2,150,145 -2,391,836 0 2,150,145
legal entity
National Social Security
Others 0.23% 1,862,265 1,862,265 0 1,862,265
Fund No. 502
Industrial Bank-Zhongtai
Xingwei Value-selected
Others 0.21% 1,680,777 1,680,777 0 1,680,777
Complex Securities
Investment Funds
Foreign
BARCLAYS BA NK PLC 0.17% 1,386,091 1,288,819 0 1,386,091
legal entity
Bank of Communications-
E-Fund Kerui Flexible
Others 0.16% 1,314,314 1,314,314 0 1,314,314
Complex Securities
Investment Funds
Strategic investor or general corporate
investor who becomes top 10 shareholder
None
as a result of rights issue (if any) (refer to
Note 3)
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment
Funds, China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex
Description on the above-mentioned Securities Investment Funds and Industrial Bank-Zhongtai Xingwei Value-selected
shareholder relationships or concerted Complex Securities Investment Funds, all of which belongs to Zhongtai Fund. It is not
actions aware of 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.
Description of the above shareholders'
involvement in entrusted/entrusted None
voting rights and waiver of voting rights
Special instructions for the existence of
special repurchase accounts among the None
top 10 shareholders (if any) (see Note 11)
Top 10 shareholders holding non-restricted outstanding shares
Name Number of non-restricted Type of share
40
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
outstanding stocks held at
Type of share Share number
reporting period-end
SEB INTERNATIONALE S.A.S 666,681,904 RMB common shares 666,681,904
Hong Kong Securities Clearing Company Ltd. 68,164,438 RMB common shares 68,164,438
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible
5,689,830 RMB common shares 5,689,830
Complex Securities Investment Funds
Fidelity Mutual Fund & Investment Management -
2,529,922 RMB common shares 2,529,922
Customers' Capital
China Merchants Bank-Zhongtai Yuheng Value-selected
2,192,383 RMB common shares 2,192,383
Flexible Complex Securities Investment Funds
BNP Paribas - Own Funds 2,150,145 RMB common shares 2,150,145
National Social Security Fund No. 502 1,862,265 RMB common shares 1,862,265
Industrial Bank-Zhongtai Xingwei Value-selected
1,680,777 RMB common shares 1,680,777
Complex Securities Investment Funds
BARCLAYS BA NK PLC 1,386,091 RMB common shares 1,386,091
Bank of Communications-E-Fund Kerui Flexible
1,314,314 RMB common shares 1,314,314
Complex Securities Investment Funds
Connected relationship or concerted parties among the top
10 shareholders holding non-restricted outstanding shares,
Same as above
and between the top 10 shareholders holding non-restricted
outstanding stocks and top 10 shareholders
Information on top 10 common shareholders involved in
None
securities margin trading business (if any) (see Note 4)
Did the top 10 common shareholders and the top 10 common shareholders holding non-restricted stocks 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 stocks did not conduct the agreed
repurchase transaction during the reporting period.
IV. Changes in share holding status of directors, supervisors and senior executives
Applicable □Not-applicable
Quantity of Quantity of
Quantity of
Quantity of Quantity of restricted restricted
Beginning Closing restricted
Position increased decreased stocks to be stocks to be
Name Position quantity of quantity of stocks to be
status stocks in stocks in granted at granted at
stocks stocks granted in
this period this period the the end of
this period
beginning period
On-
Su Xianze Director 486,136 0 121,534 364,602 0 0 0
service
Cheung
General On-
Kwok 0 0 0 0 0 60,000 60,000
Manager service
Wah
Chief
On-
Xu Bo Financial 173,737 0 0 173,737 0 45,000 45,000
service
Officer
Vice General
Manager, On-
Ye Jide 52,191 0 0 52,191 0 20,000 20,000
Board service
Secretary
41
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Total -- -- 712,064 0 121,534 590,530 0 125,000 125,000
V. Change of the controlling shareholder or actual controller
Change of controlling shareholder in the reporting period
□Applicable Not-applicable
No change of controlling shareholder occurred in the reporting period.
Change of actual controller in the reporting period
□Applicable Not-applicable
No change of actual controller occurred in the reporting period.
42
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION VIII INFORMATION ON PREFERRED SHARE
□Applicable Not-applicable
No preferred share existed in the reporting period.
43
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION IX INFORMATION ON BOND
□Applicable Not-applicable
44
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION X FINANCIAL STATEMENT
I. Audit Report
Was semiannual report audited?
□Yes No
The semiannual report has not been audited.
II. Financial statement
Unit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
June 30, 2022
Unit: RMB
Item June 30, 2022 January 1, 2022
Current asset:
Monetary capital 3,479,946,026.90 2,654,052,417.47
Settlement reserve
Loans to other banks
Transactional financial assets 220,550,529.85 180,312,742.31
Derivative financial assets
Notes receivable 35,454,679.55 54,879,357.24
Accounts receivable 2,151,142,929.18 2,716,945,985.33
Receivables financing 232,348,975.14 3,312,225.62
Advance payment 398,813,676.89 385,367,862.85
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 16,635,885.82 12,159,756.67
Including: Interest receivable
Dividends receivable
Reverse-REPO financial assets
Inventories 2,280,319,255.52 3,096,517,055.33
45
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 659,654,342.93 2,055,027,382.63
Total current assets 9,474,866,301.78 11,158,574,785.45
Non-current assets:
Loans and advances granted
Debt investment
Other debt investments 586,813,657.54 298,191,205.49
Long-term receivables
Long-term equity investment 65,019,578.66 65,600,611.64
Other equity instrument investments
Other non-current financial assets
Investment properties
Fixed assets 1,278,054,718.16 1,291,902,992.54
Construction in progress 21,688,231.49 26,482,779.31
Productive biological assets
Oil and gas assets
Right-of-use asset 190,934,091.71 195,528,644.13
Intangible assets 445,623,658.16 452,200,863.39
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 408,477,092.55 410,974,540.21
Other non-current asset
Toatl non-current asset 2,996,611,028.27 2,740,881,636.71
Total assets 12,471,477,330.05 13,899,456,422.16
Current liabilities:
Short-term borrowings
Central bank loan
Loans from others
Transactional financial liabilities
46
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Derivative financial liabilities
Notes payable 1,578,200,000.00 500,250,000.00
Accounts payable 2,554,956,770.95 3,769,700,826.50
Advance receipt
Contract liabilities 470,023,043.75 893,741,863.21
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 219,734,937.36 321,692,953.88
Taxes payable 231,014,248.04 254,094,791.55
Other payables 99,060,772.22 110,605,272.21
Including: Interest payable
Dividends payable
Handling fee and commission payable
Payable reinsurance payment
Held-for-sale liabilities
Non-current liabilities for one year 34,437,379.21 29,191,343.78
Other current liabilities 110,697,928.26 189,810,383.37
Total current liabilities 5,298,125,079.79 6,069,087,434.50
Non-current liabilities:
Reinsurance contract reserve
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease obligation 152,646,041.84 157,420,210.81
Long-term payables
Long-term employee remuneration payable 1,626,823.60 1,903,631.69
Estimated liabilities 12,172,333.27 12,737,298.24
Deferred income
Deferred income tax liabilities
47
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Non-current liabilities
Total non-current liabilities 166,445,198.71 172,061,140.74
Total liabilities 5,464,570,278.50 6,241,148,575.24
Owners' equities:
Share capital 808,654,476.00 808,678,476.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 145,575,590.16 122,970,340.27
Minus: treasury share 59,370,915.23 76,159,897.25
Other comprehensive incomes -30,421,771.31 -41,522,541.60
Special reserves
Surplus reserve 356,924,811.32 356,924,811.32
General risk reserve
Undistributed profit 5,748,952,012.23 6,451,748,564.12
Total owners' equities belonging to parent company 6,970,314,203.17 7,622,639,752.86
Minority shareholders' equities 36,592,848.38 35,668,094.06
Total owners' equities 7,006,907,051.55 7,658,307,846.92
Total liabilities and owners' equities 12,471,477,330.05 13,899,456,422.16
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 June 30, 2022 January 1, 2022
Current asset:
Monetary capital 1,050,757,489.52 800,923,960.55
Transactional financial assets 100,147,324.89
Derivative financial assets
Notes receivable 945,000.00 2,997,000.00
Accounts receivable 589,830,608.64 742,333,802.03
48
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Receivables financing
Advance payment 21,570,247.56 63,620,742.54
Other receivables 879,855,389.11 1,845,295,351.20
Including: Interest receivable
Dividends receivable
Inventories 241,333,189.94 240,622,374.15
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 564,455,967.74 1,889,046,917.63
Total current assets 3,348,747,892.51 5,684,987,472.99
Non-current assets:
Debt investment
Other debt investments 229,911,671.23 194,975,863.02
Long-term receivables
Long-term equity investment 3,024,414,764.47 3,013,961,596.02
Other equity instrument investments
Other non-current financial assets
Investment properties
Fixed assets 154,201,318.29 151,228,257.41
Construction in progress 6,112,140.82 12,559,947.93
Productive biological assets
Oil and gas assets
Right-of-use asset 2,894,545.61 3,363,931.38
Intangible assets 80,291,803.97 83,723,923.89
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 12,251,797.01 14,878,870.52
Other non-current assets
49
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Total non-current assets 3,510,078,041.40 3,474,692,390.17
Total assets 6,858,825,933.91 9,159,679,863.16
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 195,821,905.14 193,367,234.90
Advance receipts
Contract liabilities 2,398,065.17 1,510,782.40
Employee remuneration payable 40,332,025.87 56,501,055.35
Taxes payable 3,100,858.18 31,587,253.36
Other payables 1,630,691,897.71 2,355,630,738.97
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities for one year 823,513.46 289,557.95
Other current liabilities 1,048,534.25 3,038,481.86
Total current liabilities 1,874,216,799.78 2,641,925,104.79
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease obligation 2,034,457.67 2,494,235.39
Long-term payables
Long-term employee remuneration payable 174,501.03 193,670.03
Estimated liabilities
Deferred income
Deferred income tax liabilities
50
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Non-current liabilities
Total non-current liabilities 2,208,958.70 2,687,905.42
Total liabilities 1,876,425,758.48 2,644,613,010.21
Owners' equities:
Share capital 808,654,476.00 808,678,476.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 259,506,303.70 236,901,053.81
Minus: treasury share 59,370,915.23 76,159,897.25
Other comprehensive incomes
Special reserves
Surplus reserve 404,339,238.00 404,339,238.00
Undistributed profit 3,569,271,072.96 5,141,307,982.39
Total owners' equities 4,982,400,175.43 6,515,066,852.95
Total liabilities and owners' equities 6,858,825,933.91 9,159,679,863.16
3. Consolidated profit statement
Unit: RMB
Item 2022 Semiannual 2021 Semiannual
I. Total operating incomes 10,323,979,744.82 10,433,875,893.62
Including: Operating income 10,323,979,744.82 10,433,875,893.62
Interest revenue
Premium earned
Revenue from handling fees and commission
II. Total operating costs 9,158,859,522.93 9,374,133,409.86
Including: Operating cost 7,670,449,954.61 7,725,851,457.97
Interest expense
Expense for handling fees and commission
Surrender value
51
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Net payments for insurance claims
Net amount of withdrawn reserve fund for insured liability
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 67,500,088.72 50,833,199.38
Sales expense 1,078,585,004.10 1,195,543,704.82
Administrative expense 188,658,026.76 214,014,738.06
R&D expense 194,481,803.42 192,490,424.34
Financial expense -40,815,354.68 -4,600,114.71
Including: interest expense 4,810,441.61 5,136,071.01
Interest revenue 32,112,351.33 14,007,637.46
Plus: other incomes 40,687,848.15 33,089,410.91
Investment income ("-" for loss) 38,216,844.32 52,771,988.88
Including: investment income on associated enterprise and joint venture -457,219.85 1,025,583.40
Income from derecognition of financial assets measured by
amortized cost
Exchange gain ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 550,529.85 1,005,713.48
Credit impairment loss ("-" for loss) 25,222,441.21 -20,575,682.19
Asset impairment loss ("-" for loss) -16,045,044.53 -8,335,090.73
Assets disposal income ("-" for loss) -193,453.10 -540,385.03
III. Operating profit ("-" for loss) 1,253,559,387.79 1,117,158,439.08
Plus: Non-operating income 2,288,254.03 2,030,947.54
Minus: non-operating expense 2,896,308.83 4,639,873.99
IV. Total profit ("-" for total loss) 1,252,951,332.99 1,114,549,512.63
Minus: income tax expense 319,256,554.10 250,485,268.05
V. Net profit ("-" for net loss) 933,694,778.89 864,064,244.58
(I) By business continuity
1. Net profit under continuing operation ("-" for net loss) 933,694,778.89 864,064,244.58
2. Net profit under discontinuing operation ("-" for net loss)
52
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
(II) By ownership
1. Net profit belonging to the owners of parent company 932,849,164.03 865,590,446.89
2. Minority shareholders' profit and loss 845,614.86 -1,526,202.31
VI. After-tax net amount of other comprehensive income 11,179,909.75 -1,966,964.74
After-tax net amount of other comprehensive income belonging to the owners of
11,100,770.29 -1,695,778.42
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 income that cannot be transferred to gain and loss
under the equity method
3. Changes in the fair value of other equity instrument investments
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes to be reclassified into the profit and loss 11,100,770.29 -1,695,778.42
1. Other comprehensive income 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 income
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference of foreign currency financial statements 11,100,770.29 -1,695,778.42
7. Others
After-tax net amount of other comprehensive income belonging to minority
79,139.46 -271,186.32
shareholder
VII. Total comprehensive income 944,874,688.64 862,097,279.84
Total comprehensive income attributed to owners of parent company 943,949,934.32 863,894,668.47
Total comprehensive income attributed to minority shareholders 924,754.32 -1,797,388.63
VIII. Earnings per share:
(I) Basic earnings per share 1.155 1.066
(II) Diluted earnings per share 1.155 1.063
For enterprise merger under the same control in the current period, the net profit realized by the acquiree before merger was RMB0,
and the net profit realized by the acquiree during the prior period was: RMB0.
Legal representative: Thierry de LA TOUR D’ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting
department: Xu Bo
53
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
4. Profit statement of the parent company
Unit: RMB
Item 2022 Semiannual 2021 Semiannual
I. Operating incomes 1,118,472,456.99 1,353,888,354.10
Minus: Operating cost 1,025,029,076.41 1,160,224,276.22
Taxes and surcharges 7,884,054.34 7,829,816.27
Sales expense 14,001,016.71 35,788,176.87
Administrative expense 64,126,174.81 53,768,220.53
R&D expense 2,352,554.61 22,326,866.27
Financial expense -27,520,636.18 13,837,911.71
Including: interest expense 6,883,884.15 20,972,657.94
Interest revenue 28,750,182.79 8,377,902.92
Plus: other incomes 6,194,324.12 5,944,578.92
Investment income ("-" for loss) 33,451,552.55 41,632,021.76
Including: investment income on associated enterprise and joint venture -457,219.85 1,025,583.40
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)
Credit impairment loss ("-" for loss) 8,948,497.00 -3,266,715.86
Asset impairment loss ("-" for loss) -162,535.03 374,082.16
Assets disposal income ("-" for loss) -2,477.95 -128,783.76
II. Operating profit ("-" for loss) 81,029,576.98 104,668,269.45
Plus: Non-operating income 294,087.79 303,976.02
Minus: non-operating expense 1,642,475.77 1,266,531.49
III. Total profit ("-" for total loss) 79,681,189.00 103,705,713.98
Minus: income tax expense 16,072,382.51 25,680,832.65
IV. Net profit ("-" for net loss) 63,608,806.49 78,024,881.33
(I) Net profit under continuing operation ("-" for net loss) 63,608,806.49 78,024,881.33
(II) Net profit under discontinuing operation ("-" for net loss)
V. After-tax net amount of other comprehensive income
54
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
(I) Other comprehensive incomes that cannot be reclassified into profit and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive income that cannot be transferred to gain and loss under
the equity method
3. Changes in the fair value of other equity instrument investments
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes to be reclassified into the profit and loss
1. Other comprehensive income 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 income
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference of foreign currency financial statements
7. Others
VI. Total comprehensive income 63,608,806.49 78,024,881.33
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item 2022 Semiannual 2021 Semiannual
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of services 9,104,543,317.02 8,500,943,320.64
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
55
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Cash receipts from interest, handling charges and commission
Net increase of loans from others
Net increment of repurchase capital
Net cash from security transaction agency
Tax refund received 288,937,060.38 372,770,395.92
Other cash receipts related to operating activities 66,261,772.81 76,387,133.95
Subtotal of cash inflows from operating activities 9,459,742,150.21 8,950,100,850.51
Cash payments for purchasing commodities and receiving services 5,387,151,906.60 5,643,346,506.88
Net increment of customer loans and advances
Net increase of central bank deposit and interbank deposit
Cash payment for insurance indemnities of original insurance contracts
Net increase of loans to others
Cash payment of interest, handling fees and commission
Cash payment of policy dividend
Cash paid to and on behalf of employees 973,247,343.65 967,472,279.57
Taxes paid 714,021,716.57 628,745,960.07
Other cash payments related to operating activities 1,076,476,317.06 1,410,105,340.54
Subtotal of cash outflows from operating activities 8,150,897,283.88 8,649,670,087.06
Net cash flows from operating activities 1,308,844,866.33 300,430,763.45
II. Cash flows from investing activities:
Cash received from return of investments
Cash received from investment income 151,894,174.39 18,883,366.78
Net cash received from disposal of fixed assets, intangible assets and other long-
541,981.84 701,751.00
term assets
Net cash received from disposal of subsidiaries and other business units
Other cash receipts related to investing activities 1,380,000,000.00 1,015,003,017.64
Subtotal of cash inflows from investing activities 1,532,436,156.23 1,034,588,135.42
Cash paid for acquiring fixed assets, intangible assets and other long-term assets 99,411,104.56 134,374,987.54
Cash paid for investment
Net increase of pledge loans
Net cash paid for acquiring subsidiaries and other business units
56
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Other cash payments related to investing activities 550,000,000.00 546,000,000.00
Subtotal of cash outflows from investing activities 649,411,104.56 680,374,987.54
Net cash flows from investing activities 883,025,051.67 354,213,147.88
III. Cash flows from financing activities:
Cash received from investment by others
Including: cash received by subsidiaries from minority shareholder investment
Cash received from obtaining borrowings
Other cash receipts related to financing activities 892,000.00
Subtotal of cash inflows from financing activities 892,000.00
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of interest 1,559,494,958.68 1,048,601,714.34
Including: dividends or profits paid by subsidiaries to minority shareholders
Other cash payments related to financing activities 79,675,573.22 257,776,914.61
Subtotal of cash outflows from financing activities 1,639,170,531.90 1,306,378,628.95
Net cash flows from financing activities -1,639,170,531.90 -1,305,486,628.95
IV. Impact of change in exchange rate on cash and cash equivalents 12,171,493.31 -985,535.81
V. Net increase in cash and cash Equivalents 564,870,879.41 -651,828,253.43
Plus: balance of cash and cash equivalents at the beginning of the period 2,443,731,679.06 1,655,785,919.04
VI. Balance of cash and cash equivalents at the end of the period 3,008,602,558.47 1,003,957,665.61
6. Cash flow statement of parent company
Unit: RMB
Item 2022 Semiannual 2021 Semiannual
I. Cash flows from operating activities:
Cash received from sales of commodities or rendering of services 1,324,182,549.43 1,104,715,153.93
Tax refund received 114,517,829.38 106,870,814.76
Other cash receipts related to operating activities 19,758,321.08 8,240,439.60
Subtotal of cash inflows from operating activities 1,458,458,699.89 1,219,826,408.29
Cash payments for purchasing commodities and receiving services 1,012,862,505.92 1,136,899,701.62
Cash paid to and on behalf of employees 106,996,783.81 126,403,802.15
57
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Taxes paid 50,991,057.87 63,899,866.91
Other cash payments related to operating activities 57,637,041.82 25,851,310.76
Subtotal of cash outflows from operating activities 1,228,487,389.42 1,353,054,681.44
Net cash flows from operating activities 229,971,310.47 -133,228,273.15
II. Cash flows from investing activities:
Cash received from return of investments
Cash received from investment income 150,204,703.19 933,661,872.24
Net cash received from disposal of fixed assets, intangible assets and other long-
14,000.00 292,000.00
term assets
Net cash received from disposal of subsidiaries and other business units
Other cash receipts related to investing activities 1,300,000,000.00 400,000,000.00
Subtotal of cash inflows from investing activities 1,450,218,703.19 1,333,953,872.24
Cash paid for acquiring fixed assets, intangible assets and other long-term assets 29,041,702.26 11,901,615.99
Cash paid for investment
Net cash paid for acquiring subsidiaries and other business units
Other cash payments related to investing activities 1,042,829,946.14 535,510,506.31
Subtotal of cash outflows from investing activities 1,071,871,648.40 547,412,122.30
Net cash flows from investing activities 378,347,054.79 786,541,749.94
III. Cash flows from financing activities:
Cash received from investment by others
Cash received from obtaining borrowings
Other cash receipts related to financing activities 1,255,053,202.49 890,996,856.45
Subtotal of cash inflows from financing activities 1,255,053,202.49 890,996,856.45
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of interest 1,559,494,958.68 1,048,601,714.34
Other cash payments related to financing activities 58,185,415.23 257,776,914.61
Subtotal of cash outflows from financing activities 1,617,680,373.91 1,306,378,628.95
Net cash flows from financing activities -362,627,171.42 -415,381,772.50
IV. Impact of change in exchange rate on cash and cash equivalents 4,142,335.13 -147,662.14
V. Net increase in cash and cash equivalents 249,833,528.97 237,784,042.15
Plus: balance of cash and cash equivalents at the beginning of the period 800,923,960.55 231,835,282.92
58
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
VI. Balance of cash and cash equivalents at the end of the period 1,050,757,489.52 469,619,325.07
7. Consolidated statement of changes in owners' equities
Amount of this period
Unit: RMB
2022 Semiannual
Owners' equities belonging to parent company
Minority
Item Other equity Other Total
Minus: General Undistri sharehol
Share Capital compre Special Surplus owners'
instruments treasury risk buted Others Subtotal ders' equities
capital Preferred Perpetual reserves hensive reserves reserve equities
share reserve profit
shares bond Others incomes
-
I. Closing 808,67 122,97 76,159 356,92 6,451, 7,622, 35,668 7,658,
41,522
balance of last 8,476. 0,340. ,897.2 4,811. 748,56 639,75 ,094.0 307,8
,541.6
year 00 27 5 32 4.12 2.86 6 46.92
0
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Enterprise
merger under
the same
control
Others
-
II. Opening 808,67 122,97 76,159 356,92 6,451, 7,622, 35,668 7,658,
41,522
balance of 8,476. 0,340. ,897.2 4,811. 748,56 639,75 ,094.0 307,8
,541.6
current year 00 27 5 32 4.12 2.86 6 46.92
0
III. Current - - - -
- 22,605 11,100
period increase 16,788 702,79 652,32 924,75 651,4
24,000 ,249.8 ,770.2
("-" for ,982.0 6,551. 5,549. 4.32 00,79
.00 9 9
decrease) 2 89 69 5.37
(I) Total of 11,100 932,84 943,94 944,8
924,75
comprehensive ,770.2 9,164. 9,934. 74,68
4.32
incomes 9 03 32 8.64
(II) Capital - -
- 22,605 21,404 21,40
invested and 74,974 76,150
24,000 ,249.8 ,889.9 4,889.
reduced by the ,397.2 ,757.2
.00 9 0 90
owner 5 4
1. Common
shares invested
by shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount of
share-based - -
- 22,605 21,404 21,40
payment 74,974 76,150
24,000 ,249.8 ,889.9 4,889.
included into ,397.2 ,757.2
.00 9 0 90
owners' 5 4
equities
4. Others
- - -
(III) Profit 1,559, 1,559, 1,559,
distribution 494,95 494,95 494,9
8.68 8.68 58.68
1.
59
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Appropriation
of surplus
reserve
2.
Appropriation
of general risk
reserve
3.
- - -
Appropriation
1,559, 1,559, 1,559,
of profit to
494,95 494,95 494,9
owners (or
8.68 8.68 58.68
shareholders)
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. Earnings
retained
carrying over
amount of
changes in
defined benefit
plan
5. Earnings
retained after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
- -
58,185
58,185 58,18
(VI) Others ,415.2
,415.2 5,415.
3
3 23
-
IV. Closing 808,65 145,57 59,370 356,92 5,748, 6,970, 36,592 7,006,
30,421
balance of 4,476. 5,590. ,915.2 4,811. 952,01 314,20 ,848.3 907,0
,771.3
current period 00 16 3 32 2.23 3.17 8 51.55
1
Amount of last year
Unit: RMB
2021 Semiannual
Owners' equities belonging to parent company
Minority
Item Other equity Minus: Other General Undistri sharehold
Total
Share instruments Capital Special Surplus ers'
owners'
treasury compre risk buted Others Subtotal equities
capital reserves reserves reserve equities
Preferred Perpetual Others share hensive reserve profit
60
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
shares bond incomes
-
I. Closing 821,08 226,85 412,20 401,64 6,202, 7,200, 7,236,
39,031 35,784
balance of last 3,860. 9,041. 6,786. 8,181. 587,44 939,90 723,9
,832.5 ,081.11
year 00 81 34 64 4.38 8.92 90.03
7
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Enterprise
merger under
the same
control
Others
-
II. Opening 821,08 226,85 412,20 401,64 6,202, 7,200, 7,236,
39,031 35,784
balance of 3,860. 9,041. 6,786. 8,181. 587,44 939,90 723,9
,832.5 ,081.11
current year 00 81 34 64 4.38 8.92 90.03
7
III. Current - - - - - -
- - -
period increase 109,41 37,684 176,24 183,01 436,92 438,7
4,237, 1,695, 1,797,
("-" for 8,236. ,949.4 3,585. 1,267. 1,117. 18,50
199.00 778.42 388.63
decrease) 42 6 79 45 62 6.25
(I) Total of - 865,59 863,89 - 862,0
comprehensive 1,695, 0,446. 4,668. 1,797, 97,27
incomes 778.42 89 47 388.63 9.84
(II) Capital - - -
- 5,562,
invested and 109,38 295,43 176,24 5,562,
4,237, 842.8
reduced by the 7,301. 0,928. 3,585. 842.86
199.00 6
owner 34 99 79
1. Common
shares invested
by shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount of
share-based
- - 5,562,
payment 5,562, 5,562,
26,000 26,000 842.8
included into 842.86 842.86
.00 .00 6
owners'
equities
- - -
-
114,95 295,40 176,24
4. Others 4,211,
0,144. 4,928. 3,585.
199.00
20 99 79
- - -
(III) Profit 1,048, 1,048, 1,048,
distribution 601,71 601,71 601,7
4.34 4.34 14.34
1.
Appropriation
of surplus
reserve
2.
Appropriation
of general risk
reserve
3. - - -
Appropriation 1,048, 1,048, 1,048,
of profit to 601,71 601,71 601,7
61
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
owners (or 4.34 4.34 14.34
shareholders)
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. Earnings
retained
carrying over
amount of
changes in
defined benefit
plan
5. Earnings
retained after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
- -
- 257,74
257,77 257,7
(VI) Others 30,935 5,979.
6,914. 76,91
.08 53
61 4.61
-
IV. Closing 816,84 117,44 374,52 225,40 6,019, 6,764, 33,986 6,798,
40,727
balance of 6,661. 0,805. 1,836. 4,595. 576,17 018,79 ,692.4 005,4
,610.9
current period 00 39 88 85 6.93 1.30 8 83.78
9
8. Statement of changes in owners' equities of the parent company
Amount of this period
Unit: RMB
2022 Semiannual
Other equity instruments Other
Item Minus: Undistri Total
Share Capital compreh Special Surplus
Preferred Perpetual treasury buted Others owners'
capital Others reserves share ensive reserves reserve
shares bond profit equities
incomes
I. Closing
808,678, 236,901, 76,159,8 404,339, 5,141,30 6,515,06
balance of last
476.00 053.81 97.25 238.00 7,982.39 6,852.95
year
Plus:
cumulative
changes of
62
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
accounting
policies
Error
correction of
prior period
Other
s
II. Opening
808,678, 236,901, 76,159,8 404,339, 5,141,30 6,515,06
balance of
476.00 053.81 97.25 238.00 7,982.39 6,852.95
current year
III. Current
- - - -
period increase 22,605,2
24,000.0 16,788,9 1,572,03 1,532,66
("-" for 49.89
0 82.02 6,909.43 6,677.52
decrease)
(I) Total of
63,608,8 63,608,8
comprehensive
06.49 06.49
incomes
(II) Capital
- - -
invested and 22,605,2 21,404,8
24,000.0 74,974,3 76,150,7
reduced by the 49.89 89.90
0 97.25 57.24
owner
1. Common
shares invested
by shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount of
share-based
- - -
payment 22,605,2 21,404,8
24,000.0 74,974,3 76,150,7
included into 49.89 89.90
0 97.25 57.24
owners'
equities
4. Others
- -
(III) Profit
1,559,49 1,559,49
distribution
4,958.68 4,958.68
1.
Appropriation
of surplus
reserve
2.
Appropriation - -
of profit to 1,559,49 1,559,49
owners (or 4,958.68 4,958.68
shareholders)
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. Earnings
retained
63
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
carrying over
amount of
changes in
defined benefit
plan
5. Earnings
retained after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
-
58,185,4
(VI) Others 58,185,4
15.23
15.23
IV. Closing
808,654, 259,506, 59,370,9 404,339, 3,569,27 4,982,40
balance of
476.00 303.70 15.23 238.00 1,072.96 0,175.43
current period
Amount of last year
Unit: RMB
2021 Semiannual
Other equity instruments Other
Item Minus: Undistri Total
Share Capital compreh Special Surplus
Preferred Perpetual treasury buted Others owners'
capital Others reserves share ensive reserves reserve
shares bond profit equities
incomes
I. Closing
821,083, 666,767, 412,206, 410,621, 1,255,63 2,741,89
balance of last
860.00 326.32 786.34 980.00 1,844.17 8,224.15
year
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Opening
821,083, 666,767, 412,206, 410,621, 1,255,63 2,741,89
balance of
860.00 326.32 786.34 980.00 1,844.17 8,224.15
current year
III. Current
- - - - -
period increase
4,237,19 284,368, 37,684,9 970,576, 1,221,49
("-" for
9.00 054.46 49.46 833.01 7,137.01
decrease)
(I) Total of
78,024,8 78,024,8
comprehensive
81.33 81.33
incomes
(II) Capital
- - -
invested and 6,856,61
4,237,19 284,337, 295,430,
reduced by the 0.61
9.00 119.38 928.99
owner
1. Common
shares invested
by shareholders
2. Capital
64
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
invested by
other equity
instrument
holders
3. Amount of
share-based
- -
payment 6,856,61 6,856,61
26,000.0 26,000.0
included into 0.61 0.61
0 0
owners'
equities
- - -
4. Others 4,211,19 291,193, 295,404,
9.00 729.99 928.99
- -
(III) Profit
1,048,60 1,048,60
distribution
1,714.34 1,714.34
1.
Appropriation
of surplus
reserve
2.
Appropriation - -
of profit to 1,048,60 1,048,60
owners (or 1,714.34 1,714.34
shareholders)
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. Earnings
retained
carrying over
amount of
changes in
defined benefit
plan
5. Earnings
retained after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
- 257,745, -
(VI) Others
30,935.0 979.53 257,776,
65
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
8 914.61
IV. Closing
816,846, 382,399, 374,521, 410,621, 285,055, 1,520,40
balance of
661.00 271.86 836.88 980.00 011.16 1,087.14
current period
III. Basic Information of the Company
Zhejiang Supor Co., Ltd (hereinafter referred to as "the Company") is 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 specialized in the R&D, manufacturing and sales
of kitchen utensils, stainless steel products, daily hardware, small domestic appliance and cookware; the products include cookware
and small domestic appliances.
The financial statements have been approved by the Board of Directors on August 30, 2022.
As of June 30, 2022, there were altogether 21 subsidiaries included into the scope of consolidated financial statement. See Note 9
"Equity in other entities" for details.
IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements of Supor are prepared based on the continuing operation assumption and actual transactions and items
and in accordance with the Accounting Standard for Business Enterprises -- Basic Standard issued by Ministry of Finance of the
People's Republic of China (hereinafter referred to as “the Ministry of Finance”)(Released CZBL No.33, Revised CZBL No.76), 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
2014) of the China Securities Regulatory Commission.
Supor has carried out new standards on financial instruments such as Accounting Standards for Business Enterprises No. 22 --
Recognition and Measurement of Financial Instruments and Accounting Standards for Business Enterprises No. 14 - Revenue revised
by the Ministry of Finance in 2017 since January 1, 2019 and January 1, 2020 respectively. And since January 1, 2021, the Ministry of
Finance 2018 revised Accounting Standards for Business Enterprises No. 21 - Leasing.
According to the relevant regulations of the accounting standards for business enterprises, Supor'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 the reporting period, and there are no
important matters affecting the ability to continue operations.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
V. Important accounting policies and estimates
Specific accounting policies and estimates:
Supor has made accounting policies and estimates as to method for accruing provision for bad debts for receivables, method for
calculating inventory value and accruing depreciation provision, depreciation of fixed assets and amortization of intangible assets,
recognition time point of revenue and other transactions and items based on the actual production and operation features and the
provisions of related accounting standards for business enterprises. For details, please refer to descriptions of 9 "Financial instruments",
12 "Inventory" - (3), 16 "Fixed assets" - (2), 19 "Intangible assets" - (1), and 26 "Revenue" of Note 5.
1. Statement on abiding by the Accounting Standards for Business Enterprises
The financial statement prepared by the Company conforms to the requirements of the Accounting Standards for Business
Enterprises and has reflected relevant information such as the financial conditions on June 30, 2022, and operating results and cash
flow of the first half year of 2022 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 in 2014 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 and 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. Accounting treatment method for the enterprise merger under and not under the same
control
Enterprise merger refers to the transactions or events of two or more separate enterprises combing into a reporting entity.
Enterprise merger is divided into the enterprise merger under the same control and enterprise merger not under the same control.
For transactions not under the same control, the acquirer will consider whether to choose to use the simplified judgment method
of "concentration test" when determining whether the acquired asset portfolio forms a business. If the portfolio passes the concentration
test, it is judged not to form a business; otherwise, it should still be judged against business conditions.
When Supor has acquired a group of assets or net assets that do not constitute a business, the purchase cost shall be distributed
67
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
according to the relative fair value basis of all identifiable assets and liabilities acquired on the purchase date, and it shall not be handled
according to the following accounting treatment method of 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 the control is not temporary, it belongs to an enterprise merger under the same control. For enterprise merger under the same
control, the party which has obtained the control rights for other combining enterprises on the merger date will be considered as the
acquirer, and other participating enterprises are the acquiree. The merger date refers to the day when the acquirer actually obtains the
control rights of the acquiree.
The assets and liabilities obtained by the acquirer shall be measured on the basis of book value of the acquiree on the merger date.
As to the difference between the book value of net assets acquired by acquirer and the book value of merger consideration paid by it
(or total amount of the book value of shares issued), the capital reserve shall be adjusted correspondingly (share capital premium); the
retained earnings will be adjusted as long as capital reserve (share capital premium) is insufficient to be offset.
The acquirer's direct expenses incurred from enterprise merger shall be included into the current profits and losses at the time of
occurrence.
(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, it belongs to an enterprise merger not under the same control. For enterprise merger not under the same control, the party which
has obtained the control rights for other combining enterprises on the purchase date will be considered as the acquirer, and other
participating enterprises are the acquiree. The purchase date refers to the day when the acquirer obtains the control right over the
acquiree.
As for enterprise merger not under the same control, the merger costs include the assets paid by the acquirer, the liabilities accrued
and assumed, as well as the fair value of the equity security issued for obtaining acquiree'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 acquirer as merger consideration shall be included into initial recognition amount of the equity securities
or debt securities. Contingent consideration involved shall be included into 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 consolidation goodwill shall be adjusted correspondingly. The merger costs incurred by the acquirer and the identifiable
net assets obtained in the merger shall be measured at the fair value on the purchase date. The difference between the merger cost and
the fair value of the identifiable net assets of the acquiree obtained in the merger on the purchase date is recognized as goodwill. If the
merger cost is lower than the fair value of identifiable net assets of the acquiree during merger, the measurement of the identifiable
assets of the acquiree 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 acquiree during merger, the difference shall be included
into the current profits and losses.
If the deductible temporary difference of the acquiree gained by acquirer 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 acquiree from deductible temporary differences can be realized on the purchase date, relevant deferred income
tax assets shall be confirmed, and 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 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 5. 6
68
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
"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 5. 15 "Long-term equity investment" to conduct the accounting treatment; for those not
belonging to "package deal", it shall distinguish the individual financial statement and consolidated financial statement to conduct
relevant accounting treatment:
The sum of book value of the acquiree's equity investment held prior to the purchase date and the newly investment cost on the
purchase date in the individual financial statement shall be regarded as the initial investment cost of such investment; in case that the
equity of the acquiree held before the purchase date is involved in other comprehensive incomes, when disposing the investment, other
comprehensive income related shall be converted into current investment incomes.
In consolidated financial statements, the equity of the acquiree 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 the equity of the acquiree held before the purchase date is involved in other comprehensive
incomes, other comprehensive income related shall be converted into the current investment incomes of the purchase date.
6. Preparation method for consolidated financial statements
(1) Determination principles of consolidated financial statement
The merger scope of the consolidated financial statements shall depend on the control. Control refers to the power of Supor over
the investee. The Group can enjoy variable return through participating in related activities of the investee and has the ability of using
its power over the investee to influence the return amount. The merger scope includes the Company and all its subsidiaries. Subsidiaries
are entities controlled by Supor.
Supor will make a re-evaluation if the change in the relevant facts and circumstances leads to the change of the relevant elements
involved in the above definition of control.
(2) Preparation method for consolidated financial statements
From the date of obtaining actual control right of subsidiaries' net assets and production operation decision, Supor will begin to
include it into the merger scope; subsidiaries will not be included into the merger scope from the date when the Company loses its
actual control right. As for the disposed subsidiaries, the operating results and cash flow before disposal date have been properly
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 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 balance of the consolidated financial
statement shall not be adjusted. As for subsidiary increased due to the enterprise merger under the same control and the acquiree under
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 balance of the consolidated
financial statement shall be adjusted simultaneously.
When consolidated financial statements are prepared, in case the accounting policies or accounting periods employed by the
subsidiary and the Company are different, it's required to make necessary adjustment on the subsidiary's financial statements according
to the Company's accounting policy and accounting period. As to the subsidiary acquired by the enterprise merger not under the same
control, it's required to adjust its financial statement 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 statements.
The shareholders' equities and current net profits and losses of subsidiaries that do not belong to the part owned by the Company
shall be separately listed in the shareholders' equities and net profits 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
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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 the year, the minority shareholders' equities shall be offset.
When the control right of the original subsidiary is lost due to disposal of partial equity investment or other reasons, the residual
equity shall be remeasured at its fair value on the date of loss of control right. 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 related to the equity
investment of the original subsidiary, 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. As for details, please refer to Note 5. 15 "Long-
term equity investment" or Note 5. 9 "Financial instruments".
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 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 5. 15 "Long-term equity investment" (2), (d)) and "lose the control right of the
original subsidiary due to disposal of partial equity investment or other reasons" (see previous paragraph). If all transactions from the
disposal of equity investment in subsidiaries to the loss of control right are package deals, such transactions are regarded as a transaction
that disposes the subsidiary and loses the control right; however, the difference between the disposal price and the subsidiary's net asset
shares enjoyed corresponding to disposing investment before losing the control right shall be recognized as other comprehensive
incomes in the consolidated financial statement, which shall be transferred into the current profits and losses of losing the control right
when the control right is lost.
7. 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.
8. Foreign currency business and foreign currency statement conversion
(1) Conversion method for foreign currency transaction
Upon 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
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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 falls into
equity instrument measured at the fair value with their changes included into other comprehensive incomes, which shall be included
into other comprehensive incomes. Other differences are included into the current profits and losses.
(3) Conversion method of foreign currency financial statements
The foreign currency financial statement of overseas business is converted to RMB statement with the following method: the
assets and liabilities in the balance sheet shall be converted based on the spot rate on the balance sheet date; as for shareholders' equities,
except the "undistributed profits", other items shall be converted by the spot rate on the date of occurrence. Items under revenue and
cost in income 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 year-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 disposal of current 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 effect of changes in the exchange rate on cash is listed separately in the cash flow statement as an adjustment item.
The beginning amount of the year and actual amount of the previous 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.
9. Financial instrument
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
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Based on the business model for managing financial assets and the contracted cash flow features 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 model for managing financial assets means that how Supor manages its financial assets, so as to generate cash flows.
Through business model, 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 facts and specific business objectives of
financial asset management determined by key management personnel, makes decisions on the business model 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 the payment of the principal and the interest on the basis of the
outstanding principal amount. Wherein, the principal refers to the fair value of financial assets at initial recognition; the interest includes
the 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 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 the business model of the financial asset management, all influenced financial assets will be reclassified on
the first day of the first reporting period after the business model changes under such conditions. Otherwise, the financial assets cannot
be reclassified after the 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 the Group is entitled to receive.
(a) Income from derecognition of financial assets measured by amortized cost
The business model of Supor to manage financial assets measured by amortized cost is aimed at receiving contracted cash flows;
the contracted cash flow features 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 model of Supor to manage such financial assets is aimed at receiving contracted cash flows as well as sales; the
contract cash flow features of such financial assets are consistent with basic loan arrangements. Supor measures such financial assets
at fair value with their changes included into other comprehensive income, but impairment losses or gains, exchange gains and losses,
and interest revenues calculated based on effective interest method are included into the current profits and losses. At the time of
derecognition of such financial assets, the accumulated gains or losses included into other comprehensive income before will be shifted
from other comprehensive income and included into the current profits and losses.
For non-tradable equity instrument investments, Supor may, at the initial recognition, irrevocably designate it as the financial
assets measured at the fair value with their changes included into other comprehensive incomes. The assignment is based on the
independent investment and related investment conforms to the definition of equity instruments from the issuer's point of view. Supor
includes the related dividend revenue of such financial assets into the current profits and losses with the change in fair value included
into other comprehensive income. At the time of derecognition of such financial assets, the accumulated gains or losses included into
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other comprehensive income before will be shifted to retained earnings from other comprehensive income but 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 financial assets that are not measured by amortized cost nor at fair value with changes included into other
comprehensive incomes as the financial assets measured at 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 as financial assets measured at the fair value with their changes included into the current profits and losses. After the
initial recognition, such financial assets are subject to the follow-up measurement as per fair value by Supor and the gains or losses
generated (including the interest and dividend revenue) are included into current profits and losses unless such financial assets are a
part of the hedging relationship.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities are classified into financial liabilities measured at the fair value with their changes included into the current
profits and losses, financial guarantee liabilities and other financial liabilities during 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 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 financial
liabilities held for trading (including derivatives that are classified as financial liabilities) and financial liabilities that are designated to
be measured at the fair value with their changes included into the current profits and losses during initial recognition.
Financial liabilities held for trading (including derivatives that are classified as financial liabilities) are measured subsequently at
fair value and except for those related to hedge accounting, changes in fair value are included into 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
derecognized, accumulated changes in their fair value caused by changes in the Group's own credit risk that is included into other
comprehensive income are transferred to retained earnings. The remaining changes in fair value are included into the current profits
and losses. Remaining fair value changes 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) in the current profits and
losses.
(b) Financial guarantee liabilities
A financial guarantee contract refers to the 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 debt instrument terms at the
time of expiry.
After the initial recognition, the relevant incomes of the financial guarantee contracts shall be amortized and included into the
current profits and losses pursuant to accounting policy set forth in Note 5. 26 "Revenues". Financial guarantee liabilities will be treated
with subsequent measurement as per the loss provision determined as per the impairment principle of financial instruments, and the
balance after deducting the accumulative amortized amount determined as per the financial guarantee contract with the initial
recognition amount, whichever is higher.
(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
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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 the Group neither transfers nor retains almost all the risks and rewards in the ownership of the financial assets and does not
relinquish control over the financial assets, the financial assets shall be recognized according to the degree of continuous involvement
of the financial assets transferred, and the relevant liabilities shall be recognized accordingly. Degree of continuous involvement of the
financial assets transferred is the risk level of the Group due to changes in value of such financial assets.
In case whole transfer of financial assets satisfies the derecognition condition, the difference between the sum of the book value
of financial assets transferred and consideration received due to the transfer and the sum of changes in fair value original included into
other comprehensive income shall be included into current profits and losses.
In case partial transfer of financial assets satisfies the derecognition condition, book value of the financial assets transferred shall
be amortized between the derecognition part and the part without derecognition according to their own fair value, and the difference
between the sum of the consideration received for the transfer and accumulated amount of the change in fair value to be amortized to
derecognition part and originally 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 shall 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 derecognised 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
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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 is 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 existence of Supor is treated as profit distribution.
10. Financial assets impairment
Financial assets with impairment loss confirmed by Supor are financial assets measured with amortized cost and debt instrument
investment measured at the fair value with their changes included into other comprehensive incomes, mainly including notes receivable,
accounts receivable, receivables financing, other receivables, and other debt investments. Moreover, as for contract assets and some
financial guarantee contracts, it's necessary to calculate and withdraw impairment provision and recognize credit impairment losses
pursuant to accounting policy set forth in this part.
(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.
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 whole period of existence; 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 whole duration refers to the
expected credit loss arising from all possible events of default regarding financial instrument occurring during the entire duration. The
expected credit loss within the next 12 months refers to the expected credit loss caused by possible event of default concerning financial
instrument within 12 months after the balance sheet date (the expected duration, if the expected duration of the financial instrument is
less than 12 months) which is part of the expected credit losses 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 next 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 period of existence is
obviously higher than that confirmed at the moment of initial recognition in the expected period of existence, it means credit risk of
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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
The expected credit losses of all kinds of financial assets are calculated by Supor at the end of the year. If the estimated credit loss
is greater than the carrying amount of the current impairment provision, the difference is recognized as impairment loss; If not, it is
recognized as impairment profits.
(5) Test method of credit losses of all kinds of financial assets
(a) Notes receivable
Supor measures loss provision for notes receivable based on the amount equivalent to predicted credit loss in the whole period of
existence.
(b) Accounts receivable and contract assets
For accounts receivable and contract assets not containing significant financing part, Supor measures its loss provisions based on
the amount of expected credit losses during the entire duration.
For accounts receivable and contract assets containing significant financing part, Supor always selects to measure its loss
provisions based on the amount of expected credit losses during the duration.
The other accounts receivables other than individual credit risk assessment are divided into different portfolios based on their
credit risk characteristics:
Item Basis for determination of portfolio
Accounts receivable
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
Portfolio 2: low-risk portfolio The portfolio includes low-risk amounts such as the payment of third-party commodities.
Portfolio 3: merged related parties This portfolio includes current amount between related parties within the merger scope of
portfolio amounts receivable.
(c) 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 includes low-risk amounts such as dividends receivable and related receivables
Portfolio 2: low-risk portfolio
from government departments.
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Portfolio 3: merged related parties This portfolio includes current amount between related parties within the merger scope of
portfolio amounts receivable.
11. 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. For
related accounting policies, please refer to Note 5. 9 "Financial instruments" and Note 5. 10 "Financial assets impairment".
12. 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) Method of recognizing net realizable value and accruing depreciation reserve of inventories
Net realizable value refers to the amount of the estimated selling price of inventories deducted by estimated costs to be incurred
upon completion, estimated sales expenses and related taxes in daily activities. For the 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 inventories held is more
than the ordering amount in the sales contract, the net realizable value of the excess shall be measured based on the general sales price.
The determination of realizable net value of the inventory shall be based on the concrete evidence acquired and consider the purpose
of holding inventory, and impacts of the events after the balance sheet date.
At the balance sheet date, the inventory shall be measured according to the cost or realizable net value, subject to the lower one.
In case the cost is higher than realizable net value, inventory depreciation reserves shall be withdrawn. The inventory depreciation
reserve is usually withdrawn based on the difference between the cost of a single inventory item and its net realizable value.
After the inventory depreciation reserve is withdrawn, if factors that previously reduced the value of inventory disappear, causing
net realizable value of inventory to be higher than its book value, the original inventory depreciation reserves will be reversed and the
amount reversed is included into current profits and losses.
(4) Inventory system is perpetual inventory system
(5) Amortization method for low-value consumables and packing materials
Low-value consumables shall be amortized by one-off amortization method during the requisition or be amortized during usage;
packing materials shall be amortized by one-off amortization method during the requisition.
13. Contract assets
Supor lists as contract assets in the balance sheet the right that the customer has not paid the contract consideration, but Supor
has fulfilled the performance obligations according to the contract and does not belong to the unconditional (only depending on the
passage of time) collection right from the customer. Contract assets and contract liabilities under the same contract are reported in net
amount, and contract assets and contract liabilities under different contracts are not offset.
For the determination and accounting treatment methods of expected credit loss of contract assets, please refer to Note 5. 10
"Financial assets impairment".
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14. Held-for-sale assets and 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.
Among them, 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 under agreements to resell during initial measurement or on the
balance sheet day based on remeasurement of Supor, and 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 shall be 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, and then deduct
the book value of each non-current asset in the disposal group in proportion conforming to the measurement provisions of Accounting
Standards for Business Enterprises No. 42 -- Non-current Assets and Disposal Groups Held for Sale and Termination of Business
Operation (hereinafter referred to as "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 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 continuously due to failing to satisfy
the classification conditions of held-for-sale category or non-current assets are removed from the held-for-sale disposal group, the
measurement shall be carried out 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.
15. 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 checked as financial assets financial assets measured at the fair value
with their changes included into the current profits and losses. If such assets are non-transactional, Supor may specify these capitals as
financial assets measured at the fair value with their changes included into other comprehensive incomes at the time of initial
recognition. For the accounting policy, please refer to Note 5. 9 "Financial instruments".
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Common control refers to common control on a certain arrangement according to related provisions and related activities of the
arrangement by Supor 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.
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 acquiree's shareholders' equities/owners' equities
in consolidated financial statements of the final controlling party 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 case that the issuance of equity securities is used as the merger consideration, the share of the book value of the
acquiree's shareholders' equities/owners' equities in consolidated financial statements 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 book value of the issued share as share capital, and the difference between the initial investment cost of long-term
equity investment and the total book 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 acquiree held 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 the transaction as the transaction with acquisition of control right. If it
does not belong to "package deal", the share of the book value of the acquiree's shareholders' equities/owners' equities in consolidated
financial statements of the final controlling party on the merger date will be taken as the initial investment cost of long-term equity
investment, and the capital reserve 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 merger 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 not subject to the
accounting treatment temporarily.
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 acquirer, liabilities incurred or assumed, and fair value of issued equity securities. The equity of the acquiree held
step by step through several transactions, which finally forms enterprise merger not under the same control, shall be handled separately
according to whether it belongs to "package deal": if it belongs to the "package deal", the accounting treatment will be carried out by
taking the transaction as the transaction with acquisition of control right. If it does not a "package deal", it shall take the sum of the
book value of the original equity investment held by the original acquiree 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 the 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 newly
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investment cost.
(2) Methods for the subsequent measurement and the profit and loss confirmation
The long-term equity investment implementing the common control (except constituting the joint operator) or significant impact
upon the invested unit adopts the equity method for accounting. 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 the accounting, the long-term equity investment shall be valued according to the initial
investment cost and the cost of long-term equity investment shall be adjusted by additional or recovering of the investment. The current
investment incomes shall be recognized by the cash dividends or profits announced and issued by the invested unit, except for the
actual price paid when the investment is obtained or the cash dividends or profits which have been declared but not issued in the
consideration.
(b) Long-term equity investments under the equity method
As to long-term equity investments checked by equity method, in case the initial investment cost is more than the shares of fair
value of identifiable net assets of the invested unit during the investment period, 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 during the investment period, the difference shall be included into the current profits and losses and the cost of long-term
equity investments shall be adjusted simultaneously.
Under equity method, 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 owned 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 owned and calculated according to the profits
or cash dividends announced and distributed by the invested unit, it's required to reduce the book value of long-term equity investment
correspondingly. As to other changes in owners' equities of the invested unit except for net profits and losses, other comprehensive
incomes and profit distribution, book value of the long-term equity investment shall be adjusted and included into the capital reserve.
When the shares of net profit or loss of the invested unit that shall be owned are recognized, it shall be based on fair value of identifiable
assets 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 the transaction incurred between Supor and associated
enterprises and joint ventures, if the invested or sold assets do not constitute a business, the parts that do not achieve internal transaction
profits and losses or belongs to Supor calculated in proportion to entitlement will be offset, and the profits or losses on investment will
be confirmed on this basis. However, the unrealized internal transaction losses between Supor and the invested unit are not offset if
they belong to the impairment loss of the transferred assets. If the assets invested by Supor to the joint venture or associated enterprise
constitute 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 will be included into 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 business, accounting treatment shall be conducted in accordance with the provisions of the Accounting
Standards for Business Enterprises No. 20 -- Business Combinations, fully recognize the gains or losses related to the transaction.
When the net loss of the invested unit that shall be shared is recognized, it shall be limited to writing off the book value of long-
term equity investment and other long-term equity constituting the net investment in the invested unit to the zero. Besides, if Supor is
obliged to bear the extra loss for the invested unit, it shall be necessary to determine estimated liabilities and record them to current
investment loss in compliance with obligations expected to be assumed. 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 recognition of income
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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 minority shareholders' equities and the net asset shares entitled
according to the newly-increased 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 Company shall adjust the retained earnings.
(d) Disposal of the long-term equity investment
The parent company partially disposes the long-term equity investment of the subsidiary when the control right is not lost in
consolidated financial statement. The difference between disposal price and subsidiaries' net assets entitled 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
according to the related accounting policy as specified in the Note 5. 6 "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 current profits and losses.
For the long-term equity investment accounted by the equity method, if the residual equities after disposal shall still be accounted
by the equity method, upon the disposal, the part of the other comprehensive incomes that is originally included into the shareholders'
equities shall have the accounting treatment on the same basis of the invested unit's directly disposing the relevant assets or liabilities
according to the corresponding proportion. However, the owners' equities that are recognized based on the changes in other owners'
equities shall be converted into current profits and losses in proportion, except for 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 accounted with the cost
method, as for other comprehensive incomes confirmed due to adopting the equity method for accounting or adopting the standards of
recognition and measurement of financial instruments for accounting before obtaining control of the invested unit, it shall be conducted
with accounting treatment on the same basis of the invested unit's directly disposal of the relevant assets or liabilities, and it shall be
carried down to current profits and losses in proportion; changes in owners' equities other than net profits and losses, other
comprehensive incomes and profit distribution in the net assets of the invested unit recognized as a result of adopting the equity method
are 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 statement, equity method will be
adopted for accounting, and it will be accounted with equity method which is same as that when obtaining and adjusted; if the residual
equities after disposal cannot implement the common control or exert significant impact on the invested unit, the relevant provisions
in respect of the standards of recognition and measurement of financial instruments shall be referenced for the accounting treatment,
and the difference between the fair value and book value shall be included into current profits and losses on the date of losing control.
Before Supor acquires the control on the invested unit, for other comprehensive incomes confirmed due to adopting the equity method
for accounting or adopting the standards of recognition and measurement of financial instruments for accounting, when the Group loses
the control on the invested unit, it shall conduct the accounting treatment on the same basis of the invested unit's directly disposing the
relevant assets or liabilities; the changes of the other owners' equities in net assets of the invested unit other than the net profits and
losses, other comprehensive incomes and profit distribution accounted and confirmed by the equity method shall be converted into
current profits and losses when the Group loses control on invested unit. Among which, if the residual equities after disposal are
calculated by the equity method, other comprehensive incomes and other owners' equities shall be carried forward in proportion; if the
residual equities after disposal are subject to the standards of recognition and measurement of financial instruments for the accounting
treatment, other comprehensive incomes and other owners' equities shall be carried down.
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 standards of recognition and measurement of financial instruments. The
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difference between the fair value and book value shall be included into 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 accounted with the
equity method, it shall be subject to the accounting treatment on the same basis of the assets or liabilities which are directly disposed
by the invested unit when the equity method is abandoned. The owners' equities which are recognized by the invested unit due to the
changes in other owners' equities, except for net profits and losses, other comprehensive incomes and profit distribution of the investee,
will be converted into 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 lose its control right.
When the above-mentioned transactions belong to the package deal, the transactions will be subject to the accounting treatment as an
equity investment of subsidiaries and transaction which has lost the control right. The difference between 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 converted into current profits and losses when the control right is lost.
16. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for producing commodities, providing labor service, leasing or operation management with
service life of more than 1 fiscal year. The fixed asset can be confirmed only when the economic interest related to a fixed asset is
likely to flow into Supor, and the cost of such fixed asset can be reliably measured. 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
From the following month when fixed assets reach the estimated applicable state, the depreciation is withdrawn within its service
life with the straight-line method. Service life, expected net residual value, annual depreciation rate of all kinds of fixed assets are as
follows:
Estimated residual value
Categories Depreciation method Useful life (years) Annual depreciation rate
proportion
Buildings and structures Straight-line method 20-30 years 3%-10% 3.00%-4.85%
General equipment Straight-line method 3-5 years 3%-10% 18.00%-32.33%
Special equipment Straight-line method 10 years 3%-10% 9.00%-9.70%
Transport facilities Straight-line method 4-10 years 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.
(3) Impairment test method and counting and withdrawing method of the impairment provision of fixed assets
Refer to Note 5. 21 "Impairment of long-term assets" about the impairment test method and the withdrawing method of impairment
provision of fixed assets.
(4) Other remarks
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, excepting for this, shall be included into the current profits and losses at the time of
occurrence.
As for each component constituting fixed assets, in case that they have different service life or provide economic interests for Supor
by different ways and apply to different rates of depreciation and depreciation methods, Supor confirms each component as a single
fixed asset.
When the fixed assets are under disposal state or it is estimated that no economic benefits can be produced through usage or disposal,
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such fixed asset is confirmed to be derecognized. The difference between book value and relevant taxes deducted from the disposal
income obtained from the sales, transfer, discard or damage of the fixed assets 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.
17. Construction in progress
The cost of construction in progress shall be confirmed as per actual engineering expenditures, including various project
expenditures under construction, capitalized borrowing expense for making the project reach the expected serviceable condition, and
other relevant costs. The construction in progress shall be transferred to the fixed assets when it reaches the expected serviceable
condition.
Refer to Note 5. 21 "Impairment of long-term assets" about the impairment test method and the withdrawing method of impairment
provision of construction in progress.
18. Borrowing expenses
Borrowing expenses include interest on borrowing, amortization of discounts or premiums, auxiliary costs and exchange
differences arising from foreign currency borrowings, etc. For the borrowing expense generated from the acquisition and construction
or production that can be directly attributable to the assets that meet capitalization conditions, the capitalization shall be started when
the asset expenditure or the borrowing expense has incurred, or the acquisition and construction or production activities necessary for
making the assets available for expected serviceable or marketable state have been started; capitalization shall be stopped when the
assets under acquisition and construction or production that meet capitalization conditions reach the expected serviceable condition or
marketable state. Other borrowing expenses are recognized as expenses in the current period.
The amount after the actual interest expense generated from the specific borrowing deducts the interest revenue from the unused
loan funds deposited in the bank or investment income obtained from the temporary investment in the current period can be capitalized;
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 is 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 asset, investment properties, inventory, 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.
19. Intangible assets
(1) Intangible assets
Intangible assets refer to the identifiable non-monetary assets that have are owned or controlled by Supor and have no physical
form.
The initial measurement of intangible assets shall be conducted according to its costs. Expenditures related to intangible assets
shall be included into the cost of intangible assets if the relevant economic benefits may flow in Supor and its cost can be reliably
measured. Other expenditures, excepting for this, shall be included into the current profits and losses at the time of occurrence.
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Land use right acquired is usually calculated as an intangible asset. 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 houses and buildings, the related prices are distributed between land use rights and buildings.
If it is difficult to allocate reasonably, all shall be treated 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 is amortized with the straight-line method within the
expected service life. Intangible assets with undetermined service life will not be amortized.
Among them, the service life and amortization method of intangible assets of intellectual property right are as follows:
Item Amortization period (years) Amortization method
Land use right 43-50 Straight-line method
Software 2-10 Straight-line method
Trademark right 10 Straight-line method
At the end of the year, the service life of intangible assets with limited service life and the amortization method for them will be
rechecked. Changes of them will be regarded as changes of accounting estimate. In addition, the service life of intangible assets with
undetermined service life will be rechecked. If there is evidence manifesting that an intangible asset can bring economic benefits for
the enterprise within a foreseeable period, then its service life will be estimated and it will be amortized according to the amortization
policy for intangible assets with limited service life.
(2) R&D expenditure
Expenditures on the internal R&D items of Supor are divided into research expenditure and development expenditure.
Research expenditure is included into the current profits and losses when it occurs
Development expenditure that can meet the following conditions will be recognized as intangible assets, while those cannot meet
will be included into current profits and losses:
- Complete the intangible asset so as to make the use or sale of it technically feasible;
- Have the intention to complete the intangible asset and use or sell it;
- The way that an intangible asset generates economic benefits is to certify that the products produced with the intangible asset
has market or the intangible asset itself has market, or to certify its usability when it will be used internally;
- There are enough technology, financial resources and other resources to support finishing the development of an intangible asset,
and it is capable of using or selling this intangible asset;
- Expenditure within the development stage of this intangible asset can be measured reliably.
If it is unable to distinguish the research expenditure from development expenditure, both R&D expenditures will be included into
the current profits and losses.
(3) Impairment test method and counting and withdrawing method of the impairment provision of intangible assets
Refer to Note 5. 21 "Impairment of long-term assets" about the impairment test method and the withdrawing method of impairment
provision of intangible assets.
20. 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 on a straight-line basis over the
expected benefit period.
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21. 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 withdrawn according to the difference and it will be included into impairment losses. The recoverable amount shall be
determined as the net amount obtained by the fair value of assets minus 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 asset impairment provision shall be calculated and recognized
on the basis of a single asset. If it is hard to assess the recoverable amount of a single asset, the recoverable amount of the asset group
shall be determined according to the asset group including the assets. Asset group refers to the minimum asset portfolio that is capable
of independently generating cash inflow.
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
of the book value other than goodwill in the asset group or asset group portfolio.
Once the above-mentioned asset impairment losses are recognized, it will not be reversed for the part whose value has been
restored in subsequent periods.
22. Contract liabilities
Contractual liabilities refer to the obligation of Supor to transfer commodities to customers on account of the consideration
received or receivable by the Group. If a customer has paid the contract consideration or Supor has obtained the unconditional right to
receive the commodities before the transfer of the commodities from Supor to the customer, Supor will list the received amount or
account receivable as a contract liability at the earlier time of the customer's actual payment and due payment. Contract assets and
contract liabilities under the same contract are reported in net amount, and contract assets and contract liabilities under different
contracts are not offset.
23. Employee remuneration
Employee remuneration of Supor mainly includes short-term remuneration, post-employment benefit, termination benefit and
other long-term employee welfares. Including:
Short-term employee remuneration mainly includes salary, bonus, allowance and subsidy, employee benefit expense, medical
insurance premium, birth insurance premium, work-related injury insurance premium, housing accumulation fund, labor union
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expenditure and employees' educational 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 benefit mainly includes basic endowment insurance, unemployment insurance, and annuity. The plan of post-
employment benefit includes the defined contribution plan. In case that the defined contribution plan is adopted, corresponding amount
which shall be deposited will be 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 confirms the cost related to reconsolidation 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.
Personnel salary and social insurance premium to be paid by Supor for the early retired employee from the date of stopping providing
services to the date of normal retirement are included into current profits and losses (termination benefit) if the recognition conditions
of estimated liabilities are met.
24. Estimated liabilities
When the obligation related to contingencies satisfies the following conditions at the same time, they will be recognized as
estimated liabilities: ① The obligation is the present 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.
On the balance sheet date, considering the risks, uncertainties and time value of money related to contingencies, the estimated
liabilities are measured in accordance with the optimal estimate of the expenditure required to perform the relevant current obligations.
There is a continuous range of required expenditures, and the likelihood of the occurrence of outcomes within the range is the
same. The optimal estimate is determined by the intermediate value within the range. In other cases, the optimal estimate shall be
handled in accordance with the following situations respectively:
Where the contingency involves a single item, it shall be determined based on the most likely amount.
Where the contingency involves multiple items, it shall be determined based on various possible outcomes and associated
probabilities.
If all or part of the expenditure necessary for paying off estimated liabilities is compensated by the third party, the compensation
amount shall be confirmed separately as asset when confirming it may be recovered. Confirmed compensation amount shall not exceed
the book value of anticipation liabilities.
(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 executory contract becomes a loss contract, for which the liability can conform to the aforesaid
estimated liabilities confirmation conditions, the part of the estimated contract loss exceeding the confirmed impairment loss (if any)
of the underlying asset of the contract shall be recognized as the estimated liability.
(2) Restructuring obligations
The estimated liabilities shall be determined according to the direct expenditures related to the restructuring which has detailed,
formal and publicly stated restructuring plan and which are in line with the confirmation 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).
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25. 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 the waiting period, 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 after the grant, the relevant cost or expense is included into the grant date, and the capital
reserves shall be increased accordingly.
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 balance sheet date before the settlement of relevant
liabilities, and the change is 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 treatments of the share-based payment transactions involving Supor and the shareholders or actual controllers of the
Company
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For share-based payment transaction involving Supor or the Company's shareholders or actual controller, if either settlement enterprise
or service enterprise is inside Supor or outside Supor, the accounting treatment shall be conducted in the consolidated financial
statements 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 is 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 reserve) or liabilities shall be recognized.
- If the service enterprise has no settlement obligation or the equity instruments granted to employees of the enterprise are its own
equity instruments, such share-based payment transaction shall be taken as the equity-settled share-based payment treatment; If the
service enterprise has settlement obligation and the equity instruments granted to employees of the enterprise are not its own equity
instruments, such share-based payment transaction shall be taken as the cash-settled share-based payment treatment.
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 the individual
financial statements of the acceptance service enterprise and the settlement enterprise shall be compared with the above principles.
26. Revenues
Accounting policies adopted for revenue recognition and measurement
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): the parties to the contract have approved the contract and
undertake to perform their respective obligations; the contract specifies the rights and obligations of the parties to the contract in relation
to the commodities transferred or the services rendered; the contract has express terms of payment in relation to the commodities
transferred; the contract is for commercial purposes, which means the performance of the contract will change the risk, timing or
amount of Supor's future cash flows; and the consideration to which Supor is entitled as a result of the transfer of commodities to the
customer is likely to be recovered. Obtaining the control right of related commodities means being able to dominate the use of such
commodities and obtain almost all economic benefits from them.
At the commencement date of the contract, Supor identifies each individual performance obligation under the contract and apportions
the transaction price to each individual performance obligation in proportion to the selling prices of the commodities to which each
individual performance obligation relates. Variable consideration, significant financing parts in the contract, non-cash consideration
and consideration payable to the customer are taken into account in determining the transaction price.
For contracts with quality assurance terms, Supor analyzes the nature of the quality assurance provided. If the quality assurance
provides a separate service in addition to assuring customers that the goods sold meet the established standards, Supor will treat it as
an individual performance obligation.
The transaction price refers to the amount of consideration that Supor expects to be entitled to receive due to the transfer of goods or
services to the customers, excluding payments received on behalf of third parties. The transaction price recognized by Supor does not
exceed the amount at which the accumulated recognized revenue would be extremely unlikely to be significantly reversed when the
relevant uncertainty is eliminated.
For an individual performance obligation under the contract, Supor recognizes as revenue the transaction price apportioned to the
individual performance obligation during the relevant performance period based on the progress of the performance in the case of any
of the following: the customer obtains and consumes the economic benefits from Supor's performance of the contract at the same time
as Supor's performance; the customer is able to control the commodities under construction during Supor's performance of the contract;
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or the commodities produced during Supor's performance of the contract have irreplaceable uses, and Supor is entitled to receive related
amount for the cumulative performed part to date over the entire contract term. The progress of performance is determined by the input
method or the output method as applicable to the properties of the commodities transferred. If the progress of performance cannot be
reasonably determined, and the costs incurred by Supor are expected to be compensated, income is recognized based on the amount of
costs incurred until the progress of performance can be reasonably determined.
If none of the above cases occurs, Supor will recognize as revenue the transaction price apportioned to the individual performance
obligation at the time point when the customer acquires control right of relevant commodities. In determining whether the customer
has acquired control right of the commodities, Supor takes into account the following indications: the Enterprise has a current right to
receive payment for the commodities, which means the customer has a current obligation to pay for the commodities; the Enterprise
has transferred the legal ownership of the commodities to the customer, which means the customer has the legal ownership of the
commodities; the Enterprise has transferred the commodities to the customer, which means the customer holds the commodities in the
physical sense; the Enterprise has transferred the main risks and rewards pertaining to the ownership of the commodities to the customer,
that is to say, the customer has obtained the main risks and rewards pertaining to the ownership of the Goods; the customer has accepted
the commodities; and other indications that the customer has acquired control right of the commodities.
For sales with return policies, when the customers obtain the control right of relevant goods, Supor recognizes the revenues according
to the amount of consideration expected to be entitled to receive due to the transfer of goods to the customers (i.e., excluding the amount
expected to be returned due to sales return), and recognizes the liabilities according to the amount expected to be returned due to sales
return. In the meanwhile, according to the expected book value of the returned goods at the time of transfer, the balance after deducting
the estimated cost of recovering the goods (including the value impairment of the returned goods) is recognized as an asset. According
to the book value at the time of goods transfer, the net carry-over cost of the aforementioned asset cost is deducted. On each balance
sheet date, Supor will re-estimate the future sales return. In case of any change, it will conduct the accounting treatment as the change
of accounting estimate.
Supor's selling of commodities such as cooking utensils and small domestic appliances is a type of performance obligation at a certain
time point, of which the revenue is recognized when the control over commodities has been transferred to the customers. According to
the agreement in the sales contract, Supor mainly recognizes the control over commodities having been transferred to the customer and
relevant commodity revenues when such commodities have left Supor's warehouses or its specified warehouses, delivered to the
customers with the acceptance receipt issued, or such commodities have been delivered on board to the sea transport carrier with the
customs declaration for export and bill of lading obtained.
27. Contract cost
The incremental cost incurred by Supor to obtain the contract and expected to be recovered is 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 in the current profits
and losses when it occurs.
If 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 anticipated contract, including direct labor, direct
materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred solely due to the
contract; ② This cost increases the resources Supor will use to fulfill its performance obligations in the future; ③ This cost is expected
to be recovered.
Assets recognized for contract acquisition cost and those recognized for contract performance cost (hereinafter referred to as
"assets related to the contract cost") shall be amortized on the same basis as the revenue recognition of commodities or services related
to such assets and included into the current profits and losses.
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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 provision of the excess part and recognize it as the asset impairment loss:
Residual consideration expected to be obtained by Supor arising from the transfer of commodities or services related to the
assets;
Cost estimated to be occurred for the transfer of the relevant commodities or services.
28. 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 subsids are divided into
government subsidies concerning assets and government subsidies concerning benefits. Supor defines the government subsidies
obtained for the acquisition and construction or the formation of long-term assets in other ways as 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 at 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 year, 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 amount of 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 The bases are 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 official
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 incomes, and included into the current profits
and losses; 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 concerning not daily activities will be included into non-
operating income.
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If the government subsidies confirmed needs to be returned and there is the deferred incomes balance concerned, the book balance
of relevant deferred incomes shall be offset against, but the excessive part shall be included into current profits and losses; in other
circumstances, they shall be included into current profits and losses directly.
29. Deferred income tax assets/deferred income tax liabilities
(1) Current income tax
On the balance sheet date, the current income tax liabilities (or assets) incurred in the current period or prior periods shall be
measured in accordance with the expected payable (or refundable) amount of income tax which is calculated according to 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 confirmation of goodwill and related to the initial recognition of assets or
liabilities arising from transactions that are neither enterprise merger nor affecting the accounting profit and taxable income (or
deductible loss) when it occurs, the relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary
differences related to the investments of subsidiaries, joint ventures and associated enterprises, 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 deductible temporary differences related to the initial recognition of assets or liabilities arising from transactions that are
neither enterprise merger nor affecting the accounting profit and taxable income (or deductible loss) when it occurs, the relevant
deferred income tax assets shall not be recognized. In addition, for the deductible temporary differences related to the investment of
subsidiaries, joint ventures and associated enterprises, 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 forward for subsequent years, the corresponding deferred income tax
assets shall be recognized to the extent of the future taxable income 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 possible to obtain sufficient taxable income, the reduced amount shall be reversed.
(3) Income tax expense
The income tax expenses comprise the current income tax and deferred income tax.
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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) Income tax offsets
In the case of having legal rights of net settlement and intending to settle or obtain assets and pay off debts with net amount,
Supor's current income tax assets and current income tax liabilities shall be presented with the net amount after offsetting.
In the case of having legal rights to settle current income assets and current income liabilities with net amount, deferred income
tax assets and deferred income tax liabilities being related to income taxes collected by one tax collection and administration department
against the same taxpayer or related to different taxpayers, but involved tax payers intending to settle the current income tax assets and
liabilities with net amount or obtaining assets while paying off debts in any important period of reversing deferred income tax assets
and liabilities, Supor's deferred tax asset and deferred income tax liabilities shall be presented with the net amount after offsetting.
30. Leases
Lease refers to the lessor transferring the use right of assets to the lessee to get the corresponding consideration within a certain
period.
Supor evaluates whether the contract is used for lease or includes the lease on the contract commencement date. If one party of
the contract assigns the one or more use rights of the identified assets under the control in a certain period for consideration, the contract
is used for lease or includes the lease.
To determine whether the contract transfers the right to control the use of the identified assets within a certain period, the
following assessments are conducted by Supor:
Whether the contract involve the use of identified assets. Identified assets may be explicitly specified by the contract or implicitly
specified when the asset is available to customers, and the asset is physically distinguishable, or a certain part of the capacity or other
parts of the asset is physically indistinguishable but substantially represents the entire capacity of the asset, so that the customer can
obtain almost all the economic benefits arising from the use of the asset. In the event that the supplier of the asset has a substantial right
to replace the asset during the entire period of use, the asset is not an identified asset;
Whether the lessee has the right to obtain almost all the economic benefits arising from the use of the identified assets 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 account for each
separate lease separately to have accounting treatment. If the contract includes lease and non-lease parts at the same time, the lessee
and lessor will split lease and non-lease parts.
(1) Supor as the lessee
On the commencement date of the lease term, Supor recognizes the right-of-use assets and lease obligations. The right-of-use
assets are initially measured at cost, including the initial measurement amount of the lease obligation, the amount of lease payments
paid on or before the start of the lease term (deducting the amount of lease incentives already enjoyed), the initial direct expense
incurred, and the estimated cost incurred for dismantling and removing the leased asset, restoring the site where the leased asset is
located, or restoring the leased asset to the state agreed upon in the lease terms.
Supor uses the straight-line method to depreciate the 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 the leased assets shall be withdrawn during the remaining
service life by Supor. Otherwise, the leased assets shall be depreciated during the lease term or the remaining service life of the leased
assets, whichever is shorter. The impairment provision of right-of-use assets is made pursuant to the accounting policy set forth in Note
5. 21 "Impairment of long-term assets".
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The lease obligations are initially measured at the present value of the lease payment that has not been paid at the beginning 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, Supor's
incremental borrowing rate is used as the discount rate.
Supor calculates the interest expense of the lease obligation in each period of the lease terms at a fixed cyclical interest rate and
includes it into current profits and losses or relevant asset costs. The variable lease payment not included into the measurement of lease
obligations will be included into current profits and losses or relevant asset costs when it actually occurs.
In case of the following situations after the commencement date of the lease term, Supor will measure the lease obligation anew
as per the present value of lease payment after the change:
The amount payable anticipated is changed as per the guaranteed residual value changes;
The index or ratio used for confirming the lease payment changes;
Supor has a change in the assessment results of the option to purchase, renewal option or option of determination of tenancy
changes or the actual exercising of the renewal option of determination of the 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 right-of-use assets has been reduced to zero, but the lease obligation still needs to be further reduced, Supor will include the
remaining amount into the current profits and losses.
Supor chooses not to confirm the right-of-use asset and lease obligation for short-term lease (lease term not exceeding 12 months)
and low-value asset lease, and includes related lease payment into 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
Supor will divide the lease into financing lease and operating lease on the lease commencement date. Financing lease refers to
the actual transfer of the lease of almost all the risks and rewards related to the lease asset ownership regardless of whether the
ownership is finally transferred. 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 elects 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 the financing lease, at the beginning of the lease term, Supor confirms financing lease receivables for financing lease and
derecognizes the financial leasing assets. Supor makes the net investment in a lease as the entry value of financing lease receivables at
the time of initial measurement for financing lease receivables. The net investment in a lease is the sum of the present value of
unguaranteed residual value and rental receipts not gotten yet on the commencement date of the lease term which is subject to
discounting in accordance with the implicit rate of the lease.
Supor calculates and confirms the interest revenue in each period within the lease term as the fixed periodic rate. The
derecognition and impairment of financing lease receivables are made based on the accounting policies described in Note 5. 9 "Financial
instruments" and 10 "Financial assets impairment" for accounting treatment. The variable lease payment which is not included into the
net investment in the lease is included into the current profits and losses when it actually occurs.
The lease receipts of operating lease are confirmed as rental revenue within the lease term in light of straight-line method. Supor
capitalizes the initial direct expenses pertaining to operating leases as well as apportions and includes such expenses into current profits
and losses as per the same basis used for recognizing the rental revenue within the lease term. The variable lease payment which is not
included into the lease receipt is included into the current profits and losses when it actually occurs.
31. Related parties
If one party controls or jointly controls the other party or imposes a significant impact on the other party, and two or more parties
are controlled or jointly controlled by one party, these parties are related parties. A related party can be an individual or enterprise. An
enterprise that is only controlled by the state but does not have other related party relations does not constitute a related party.
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Besides, the Company confirms Supor or its related parties pursuant to the Administrative Measures for the Disclosure of
Information of Listed Companies issued by China Securities Regulatory Commission.
32. Segment report
Please refer to XVI. 1 "Segment information" for relevant accounting policies of segment reports.
33. Other important accounting policies and estimates
(1) Repurchasing shares
If Supor reduces its capital by acquiring the shares of the Company with approval, then it shall reduce equities according to the total
amount of the face value of cancelled shares, and adjust the difference between the price paid to purchase shares back (including
transaction cost) and the face value of shares. The part exceeding the total face value shall be used to write down capital reserve (share
capital premium), surplus reserve and undistributed profit. If the price is lower than the total book 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 be transferred to increase capital reserve (share capital
premium); the part lower than the cost of treasury shares shall write down capital reserve (share capital premium), surplus reserve and
undistributed profit in sequence.
If 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) Hedge accounting
Some financial instruments are used as hedging tools by Supor to avoid certain risks. For those hedges meeting requirements specified,
Supor will deal with them by hedge accounting method. The hedge of Supor is fair value hedge. The hedge for foreign exchange risk
of firm commitment is used as fair value hedge by Supor.
The hedging tool and the hedged item are formally specified by Supor at the beginning of hedge with written documents about the
hedging relationship, risk management strategy and risk management objectives. In addition, the hedge effectiveness will be assessed
continuously by Supor from the beginning of hedge.
(a) Fair value hedge
The gains or losses from the hedging tool specified as fair value hedge with qualification are included into the current profits and losses.
Otherwise, the profits or losses from non-tradable equity instruments (or their components) measured at the fair value with their changes
included into other comprehensive incomes are included into other comprehensive earning. The gains or losses formed from the
hedging risks of the hedged item shall be included into current profits and losses and the book value of the recognized hedged item not
measured at the fair value shall be adjusted simultaneously. The related gain or loss from the hedged item that is measured as fair value
is included into the current profits and losses and other comprehensive income without book value adjustment.
The hedge accounting is terminated when the hedging relationship is revoked by Supor, the hedging tool is expired or sold, the contract
is terminated or exercised, or the condition is out of qualification.
(3) Measurement of fair value
Fair value, refers to the price that market participant can obtain or needs to pay after selling an asset or transferring a liability, among
the orderly transactions made on the measurement date. Supor measures relevant asset or liability and considers the characteristics of
this asset or liability at fair value; supposes the sales of assets or transfer of liabilities by market participant are orderly transaction
under current market conditions; supposes the orderly sales of assets or transfer of liabilities are carried out in the main market of
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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 used by market participants 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 approach. 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 are divided into 3 levels. The first level of input values will be used first, and
then the second level and the third level. The first level of input values is the quotations of same assets or liabilities that can be obtained
on the measurement date and are not adjusted in the active market; the second level of input values is the direct or indirect observable
input values of relevant assets or liabilities other than the first level of input values; the third level of input values is the unobservable
input values of relevant assets or liabilities.
Supor measures non-financial assets with fair value, considers market participant's ability to use this asset in the best way to generate
economic benefits, or the ability to sell this asset to other market participants who can use this asset in the best way to generate economic
benefits. To measure a liability with fair value, the Group supposes this liability is transferred to other market participants on the
measurement date, and further exists after transfer, and the market participant, who is the transferee, performs obligations. To measure
one's own equity instrument with fair value, suppose this equity instrument is transferred to other market participants on the
measurement data, and further exits after transfer, and the market participant, as the transferee, obtains relevant rights to this instrument
and undertakes corresponding obligations.
34. 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
VI. Taxes
1. Main taxes and tax rates
Taxes Tax bases Tax rates
Taxable income is calculated at output tax
rates of 0, 6%, 9%, and 13%, and VAT is
The taxable revenue from sales of commodities or rendering
VAT calculated based on the difference after
of services
deducting the input tax allowable for the
current period.
Urban maintenance and
Actually paid VAT 7%
construction tax
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Corporate income tax rate is 25%. The
overseas subsidiary GSIM is subject to the
Enterprise income tax Taxable income
tax rate of 22%; the Vietnam Supor and
AFS, 20%; and the SEADA, 17%.
Education surcharge Actually paid VAT 3%
Local education surcharge Actually paid VAT 2%
for housing property levied on an ad valorem basis, housing
property tax is levied at the rate of 1.2% of the residual value
Housing property tax after the deduction of 30% of the original value; for housing 1.2%、12%
property levied on the basis of rent, housing property tax is
levied at the rate of 12% of rental revenue.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Item Closing balance Opening balance
Cash on hand 45,511.13 71,122.80
Cash in bank 2,982,149,647.87 2,420,563,810.46
Other monetary capital 497,750,867.90 233,417,484.21
Total 3,479,946,026.90 2,654,052,417.47
Including: deposited overseas 61,166,935.87 78,040,992.57
Other remarks:
1) On June 30, 2022, the bank deposit with restricted use was RMB263,468.43 (December 31, 2021: RMB263,468.43) of the frozen
bank account of the deregistered branch, and the remaining bank deposit of RMB2,981,886,179.44 was not restricted.
2) On June 30, 2022, other monetary capitals were the security of acceptance bills with restricted use of RMB412,530,000.00
(December 31, 2021: RMB150,545,967.12), the deposit of Kuaishou, Alipay, TikTok and other e-commerce platforms of
RMB550,000.00 (December 31, 2021: RMB1,511,302.86), and the deposit security of advance payment financing of
RMB58,000,000.00 (December 31, 2021: RMB58,000,000.00), and RMB26,670,867.90 (December 31, 2021: RMB 23,360,214.23)
of unrestricted monetary capitals such as Alipay wallet, JD Wallet, TikTok Wallet, securities settlement account, futures settlement
account and Youzan account.
3) On June 30, 2022, the monetary capital deposited by Supor in Vietnam was equivalent to RMB53,122,463.70 (December 31, 2021:
equivalent to RMB72,031,237.91); the monetary capital deposited in Singapore was equivalent to RMB3,524,393.06 (December 31,
2021: equivalent to RMB2,195,848.27); the monetary capital deposited in Indonesia was equivalent to RMB4,520,079.11 (December
31, 2021: equivalent to RMB3,813,906.39).
2. Transactional financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets measured at the fair value with their changes included into the
220,550,529.85 180,312,742.31
current profits and losses
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Including:
- Short-term financial products 220,550,529.85 180,312,742.31
Total 220,550,529.85 180,312,742.31
Other remarks:
On June 30, 2022, financial assets measured at the fair value with their changes included into the current profits and losses are the
financial products purchased by Shaoxing Supor Housewares and Shaoxing Supor, totaling RMB220,000,000.00 (December 31, 2021:
RMB180,000,000.00). The income of these financial products fluctuates and is linked to the interest rate and exchange rate. At the end
of the current period, the gains from changes in fair value was recognized to be RMB550,529.85 (December 31, 2021: RMB312,742.31).
3. Notes receivable
(1) Classification list of the notes receivable
Unit: RMB
Item Closing balance Opening balance
Bank acceptance 35,454,679.55 54,879,357.24
Total 35,454,679.55 54,879,357.24
Unit: RMB
Closing balance Opening balance
Provision for bad Provision for bad
Categories Book balance Book balance
debts debts Book
Book value
Provision Provision value
Amount Proportion Amount Amount Proportion Amount proportion
proportion
Notes receivable
for provision for 35,454,67 35,454,679. 54,879,3 54,879,3
100.00% 100.00%
bad debts on a 9.55 55 57.24 57.24
portfolio
Including:
Portfolio: Bank 35,454,67 35,454,679. 54,879,3 54,879,3
100.00% 100.00%
acceptance 9.55 55 57.24 57.24
35,454,67 35,454,679. 54,879,3 54,879,3
Total 100.00% 100.00%
9.55 55 57.24 57.24
If provision for bad debts for notes receivable is made based on the general model of expected credit losses, please disclose the relevant
information about the provision for bad debts with reference to the disclosure of other receivables:
□Applicable Not-applicable
(2) Pledged notes receivable at the end of the year for the Company
On June 30, 2022, Supor had no pledged notes receivable (December 31, 2021: None).
(3) Endorsed or discounted notes receivable undue at the balance sheet date at the end of the period for the
Company
Unit: RMB
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Item Closing balance recognized Closing balance derecognized
Bank acceptance 32,678,311.69
Total 32,678,311.69
Other remarks:
By June 30, 2022, Supor's undue and endorsed notes receivable of RMB32,678,311.69 have not been recognized as notes transferred
to the suppliers to settle the accounts 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.
(4) Notes transferring to accounts receivable because the drawer fails to perform contract at the end of the
period
On June 30, 2022, Supor had no notes transferred to accounts receivable as the result of the drawer's nonperformance (December 31,
2021: None).
4. Accounts receivable
(1) Details on categories
Unit: RMB
Closing balance Opening balance
Provision for bad Book
Categories Book balance Provision for bad debts Book balance
debts value
Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount proportion
proportion
Accounts
receivables for
4,523,32 4,523,32
provision for 0.16% 100.00%
8.43 8.43
bad debts on an
individual basis
Including:
Accounts
receivable for
2,243,674, 92,531,866 2,151,142,9 2,834,42 117,482, 2,716,945,
provision for 100.00% 4.12% 99.84% 4.14%
795.96 .78 29.18 8,535.98 550.65 985.33
bad debts by
portfolio
Including:
Portfolio 1: age 2,111,798, 92,399,990 2,019,398,6 2,751,65 117,399, 2,634,259,
94.12% 4.38% 96.92% 4.27%
portfolio 598.40 .58 07.81 9,068.87 781.18 287.69
Portfolio 2: low- 131,876,19 131,744,321 82,769,4 82,769.4 82,686,697
5.88% 131,876.20 0.10% 2.92% 0.10%
risk portfolio 7.56 .36 67.11 7 .64
2,243,674, 92,531,866 2,151,142,9 2,838,95 122,005, 2,716,945,
Total 100.00% 4.12% 100.00% 4.30%
795.96 .78 29.18 1,864.41 879.08 985.33
Provision for bad debts by portfolio: Portfolio 1: age portfolio
Unit: RMB
Name Closing balance
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Book balance Provision for bad debts Provision proportion
Within 1 year (inclusive) 2,107,141,430.57 91,198,654.34 4.33%
1-2 years (inclusive) 2,620,205.73 209,616.45 8.00%
2-3 years (inclusive) 991,416.23 148,712.43 15.00%
3-4 years (inclusive) 399,675.36 199,837.68 50.00%
4-5 years (inclusive) 13,504.15 10,803.32 80.00%
Over 5 years 632,366.36 632,366.36 100.00%
Total 2,111,798,598.40 92,399,990.58
Explanation of the basis for determining such portfolio:
The expected credit loss rate is calculated upon the experience on the 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, please disclose the
relevant information about the provision for bad debts with reference to the disclosure of other receivables:
□Applicable Not-applicable
Disclosure by ages
Unit: RMB
Ages Closing balance
Within 1 year (inclusive) 2,239,017,628.13
1-2 years 2,620,205.73
2-3 years 991,416.23
Over 3 years 1,045,545.87
3-4 years 399,675.36
4-5 years 13,504.15
Over 5 years 632,366.36
Total 2,243,674,795.96
(2) Provision for bad debts accrued, collected or reversed in the current period
Provision for bad debts in current period:
Unit: RMB
Amount of changes in the current period
Categories Opening balance Closing balance
Collected or Canceled after
Provision Others
reversed verification
Provision for bad debts
122,005,879.08 -25,130,551.51 4,523,328.43 179,867.64 92,531,866.78
for accounts receivable
Total 122,005,879.08 -25,130,551.51 4,523,328.43 179,867.64 92,531,866.78
Other remarks:
Other changes represent the increase of RMB179,867.64 in the provision for bad debts due to conversion differences of foreign currency
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
statements as a result of changes in exchange rates.
(3) Accounts receivable actually written off in current period
Unit: RMB
Item Amount
Accounts receivable actually written off 4,523,328.43
Including significant accounts receivable written off:
Unit: RMB
Whether the amount
Name of Type of accounts Write-off procedures
Amount Reason was from connected
organization receivable performed
transactions
Bad debts of long ages cannot be Approval by the
Customer A Goods payment 4,523,328.43 No
recovered. management
Total 4,523,328.43
(4) Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of accounts Proportion in the total closing Closing balance of provision for
Name of organization
receivable balance of accounts receivable bad debts
SEB ASIA LTD. 1,316,557,188.89 58.68% 52,662,287.56
Customer B 238,549,177.73 10.63% 11,934,671.97
Customer C 97,282,171.59 4.34% 97,282.17
Customer D 57,021,083.22 2.54% 2,851,054.16
Customer E 30,004,876.05 1.34% 1,541,325.92
Total 1,739,414,497.48 77.53%
5. Receivables financing
Unit: RMB
Item Closing balance Opening balance
Notes receivable 232,348,975.14 3,312,225.62
Total 232,348,975.14 3,312,225.62
Other remarks:
Taking its daily fund management needs into consideration, Supor will endorse or discount certain bank acceptance bills. In view of
the amount and frequency of endorsement or discount of bank acceptance bills, Supor judges that the objective of this business model
is to simultaneously collect the contract cash flow and sell the notes receivable. Therefore, it classifies such notes receivable as financial
assets measured at the fair value with their changes included into other comprehensive incomes and presents them as receivables
financing.
On June 30, 2022, Supor had no pledged receivables financing.
Changes in receivables financing and its fair value during the reporting period
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□Applicable Not-applicable
If impairment provision for receivables financing is made based on the general model of expected credit losses, please disclose the
relevant information about the impairment provision with reference to the disclosure of other receivables:
□Applicable Not-applicable
Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
Item Closing balance recognized Closing balance derecognized
Bank acceptance 3,594,035,426.52
Total 3,594,035,426.52
Other remarks:
In order to settle part of the payables, Supor endorsed the undue notes receivable of the same amount to the suppliers. Its management
believes that some undue notes meet almost all the risks and rewards of ownership, and that the current obligations of relevant payables
have met all the conditions for release. Therefore, the recognition of relevant notes receivable and payables is terminated. The largest
potential loss suffered by Supor's continued involvement is the amount of undue notes receivable endorsed by Supor to its suppliers.
The said undue notes receivable will get mature within 1 year.
6. Advance payment
(1) Listing by ages
Unit: RMB
Closing balance Opening balance
Ages
Amount Proportion Amount Proportion
Within 1 year 396,806,716.28 99.50% 384,209,532.57 99.70%
1-2 years 1,855,442.32 0.46% 988,460.68 0.26%
2-3 years 6,000.00 0.00%
Over 3 years 151,518.29 0.04% 163,869.60 0.04%
Total 398,813,676.89 385,367,862.85
Other remarks:
The accounting age will be calculated from the advance payment confirmation day.
(2) Advance payment of the top 5 closing balances by prepayment objects
Proportion in the balance of advance
Name of organization Book balance
payment (%)
Supplier A 52,605,307.73 13.19%
Supplier B 40,349,387.63 10.12%
Supplier C 27,348,484.59 6.86%
Supplier D 25,765,045.91 6.46%
Supplier E 23,926,576.70 6.00%
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Subtotal 169,994,802.56 42.63%
7. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 16,635,885.82 12,159,756.67
Total 16,635,885.82 12,159,756.67
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Opening book
Nature of receivables Ending book balance
balance
Deposit as security 10,262,378.88 9,533,739.58
Temporary payment receivable 3,350,336.37 2,817,399.32
Personal deposit 4,956,187.68 1,550,886.08
Tax refund receivable 1,523,227.27 1,237,370.65
Total 20,092,130.20 15,139,395.63
2) Provision for bad debts
Unit: RMB
Phase I Phase II Phase III
Predicted credit loss in Predicted credit loss in
Provision for bad debts Total
Predicted credit loss in future the whole period of the whole period of
12 months existence (without credit existence (with credit
impairment) impairment)
Amount on January 1, 2022 2,979,638.96 2,979,638.96
Balance on January 1, 2022 in
the current period
Provision for bad debts during
473,075.27 473,075.27
the reporting period
Other changes 3,530.15 3,530.15
Balance on June 30, 2022 3,456,244.38 3,456,244.38
Changes in book balance of loss provision due to significant changes in the current period
□Applicable Not-applicable
Disclosure by ages
Unit: RMB
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Ages Closing balance
Within 1 year (inclusive) 12,157,466.65
1-2 years 3,509,630.29
2-3 years 1,692,349.81
Over 3 years 2,732,683.45
3-4 years 595,495.78
4-5 years 407,956.60
Over 5 years 1,729,231.07
Total 20,092,130.20
(3) Provision for bad debts accrued, collected or reversed in the current period
Provision for bad debts in current period:
Unit: RMB
Amount of changes in the current period
Categories Opening balance Closing balance
Collected or Canceled after
Provision Others
reversed verification
Provision for bad debts
2,979,638.96 473,075.27 3,530.15 3,456,244.38
of other receivables
Total 2,979,638.96 473,075.27 3,530.15 3,456,244.38
Other remarks:
Other changes represent the increase of RMB3,530.15 in the provision for bad debts due to conversion differences of foreign currency
statements as a result of changes in exchange rates.
(4) Other receivable details of the top 5 closing balances by debtors
Unit: RMB
Proportion in the Closing balance
Name of
Nature of receivables Closing balance Ages total closing balance of provision for
organization
of other receivables bad debts
Customer F Deposit as security 1,980,000.00 1-2 years 9.85% 158,400.00
Temporary payment
Customer B 1,733,257.93 1-3 years 8.63% 122,662.90
receivable/Deposit as security
Tax refund receivable Tax refund receivable 1,523,227.27 Within 1 year 7.58%
Customer G Deposit as security 1,180,000.00 Within 1 year 5.87% 59,000.00
Temporary payment
Customer H 936,580.00 Within 1 year 4.66% 46,829.00
receivable/Deposit as security
Total 7,353,065.20 36.59% 386,891.90
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
8. Inventories
If the Company needs to comply with real estate industry disclosure requirements
No
(1) Inventory classification
Unit: RMB
Closing balance Opening balance
Inventory Inventory
depreciation depreciation
Item reserve/impairm reserve/impairm
Book balance ent provision for Book value Book balance ent provision for Book value
contract contract
performance performance
cost cost
Raw materials 465,350,909.69 14,963,593.22 450,387,316.47 600,492,823.00 10,291,195.98 590,201,627.02
Unfinished
91,113,125.00 91,113,125.00 106,157,761.25 106,157,761.25
products
Finished products 1,663,173,851.20 26,250,346.17 1,636,923,505.03 2,289,813,383.66 14,771,911.61 2,275,041,472.05
Low value
90,321,823.98 98,429.17 90,223,394.81 107,094,627.93 29,787.94 107,064,839.99
consumables
Packing materials 11,671,914.21 11,671,914.21 18,051,355.02 18,051,355.02
Total 2,321,631,624.08 41,312,368.56 2,280,319,255.52 3,121,609,950.86 25,092,895.53 3,096,517,055.33
(2) Inventory depreciation reserve and impairment provision for contract performance cost
Unit: RMB
Increase Decrease
Item Opening balance Closing balance
Reversed or
Provision Others Others
written off
Raw materials 10,291,195.98 7,266,976.22 157,317.64 2,751,896.62 14,963,593.22
Finished products 14,771,911.61 13,779,843.28 17,110.86 2,318,519.58 26,250,346.17
Low value
29,787.94 68,641.23 98,429.17
consumables
Total 25,092,895.53 21,115,460.73 174,428.50 5,070,416.20 41,312,368.56
Other remarks:
Other changes represent the increase of RMB 174,428.50 in inventory depreciation reserve due to conversion differences of foreign
currency statements as a result of changes in exchange rates.
9. Other current assets
Unit: RMB
Item Closing balance Opening balance
Return cost receivable 10,829,085.35 13,377,148.99
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Creditable VAT 42,226,764.49 171,398,751.97
Term deposit [Note] 592,407,534.24 1,863,761,369.84
Others 14,190,958.85 6,490,111.83
Total 659,654,342.93 2,055,027,382.63
Other remarks:
Note: The term deposits are for the purpose of earning interest and as at 30 June 2022, the principal amount of the term deposits was
RMB 550,000,000.00 (31 December 2021: RMB 1,700,000,000.00) and the interest receivable was RMB 42,407,534.24 (31 December
2021: RMB 163,761,369.84).
10. Other debt investment
Unit: RMB
Loss provisions
fair value that are
changes in Cumulative cumulatively
Opening Interest Closing
Item the Cost changes of determined in Remarks
balance receivable balance other
reporting fair value
period comprehensive
incomes
Negotiable certificate of 298,191,205 17,776,917. 586,813,657 569,036,7
deposit .49 81 .54 39.73
Minus: Part due within one
year
298,191,205 17,776,917. 586,813,657 569,036,7
Total
.49 81 .54 39.73
Important other debt investment
Unit: RMB
Closing balance Opening balance
Other creditor's items Face value Effective Face value Effective
Maturity Maturity
Book value interest annual Book value interest annual
date date
rate interest rate rate interest rate
The Company -
March 24, March 24,
Negotiable certificate of 40,000,000.00 3.85% 3.71% 40,000,000.00 3.85% 3.71%
2024 2024
deposit at Bank of China
The Company -
April 16, April 16,
Negotiable certificate of 60,000,000.00 3.85% 3.73% 60,000,000.00 3.85% 3.73%
2024 2024
deposit at Bank of China
The Company -
April 2, April 2,
Negotiable certificate of 10,000,000.00 3.85% 3.80% 10,000,000.00 3.85% 3.80%
2024 2024
deposit at Bank of China
The Company -
March 25, March 25,
Negotiable certificate of 60,000,000.00 3.85% 3.78% 60,000,000.00 3.85% 3.78%
2024 2024
deposit at Bank of China
The Company -
April 9, April 9,
Negotiable certificate of 20,000,000.00 3.85% 3.78% 20,000,000.00 3.85% 3.78%
2024 2024
deposit at Bank of China
Shaoxing Supor
Housewares -
February February
Negotiable certificate of 100,000,000.00 3.60% 3.50% 100,000,000.00 3.60% 3.50%
8, 2024 8, 2024
deposit at China
Guangfa Bank
The Company -
December
Negotiable certificate of 30,000,000.00 3.85% 3.93%
11, 2023
deposit at Bank of China
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Shaoxing Supor
Housewares -
April 21,
Negotiable certificate of 200,000,000.00 3.55% 3.43%
2025
deposit at China
Guangfa Bank
Shaoxing Supor
Housewares -
March 11,
Negotiable certificate of 50,000,000.00 3.55% 3.36%
2025
deposit at China
Guangfa Bank
Total 570,000,000.00 290,000,000.00
Changes in book balance of loss provision due to significant changes in the current period
□Applicable Not-applicable
Other remarks:
11. Long-term equity investment
Unit: RMB
Increase/decrease
Opening Investment Closing Closing
Invested balance Adjustment Change Cash balance balance of
profit or loss Accrued
unit (book Investment Investment in other s in dividend/profit (book impairment
recognized by impairment Others
increased decreased comprehens other declared for value) provision
value) equity
ive income equity distribution
provision
method
I. Joint Venture
II. Associated Enterprise
Wuhan
Anzai 65,600,61 65,019,57
-581,032.98
Cookware 1.64 8.66
Co., Ltd.
65,600,61 65,019,57
Subtotal -581,032.98
1.64 8.66
65,600,61 65,019,57
Total -581,032.98
1.64 8.66
12. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1,278,054,718.16 1,291,902,992.54
Total 1,278,054,718.16 1,291,902,992.54
(1) Fixed assets
Unit: RMB
Buildings and General Special Transport
Item Total
structures equipment equipment facilities
I. Original Book Value:
1. Opening balance 1,186,764,153.98 278,665,369.15 916,415,607.69 32,649,668.69 2,414,494,799.51
2. Increase 12,953,658.98 14,856,164.33 23,470,053.79 491,698.70 51,771,575.80
(1) Acquisition 2,520,607.63 9,012,554.47 13,858,303.01 491,698.70 25,883,163.81
(2)Transferred in from construction
10,433,051.35 5,843,609.86 9,611,750.78 25,888,411.99
in progress
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
(3) Increase from enterprise merger
3. Decrease 3,993,719.68 3,015,226.97 19,714,325.92 2,242,697.40 28,965,969.97
(1) Disposal or scrapping 3,993,719.68 3,015,226.97 19,714,325.92 2,242,697.40 28,965,969.97
4. Effect of changes in exchange rate 976,703.11 269,162.03 2,089,959.54 72,308.61 3,408,133.29
5. Closing balance 1,196,700,796.39 290,775,468.54 922,261,295.10 30,970,978.60 2,440,708,538.63
II. Accumulated depreciation
1. Opening balance 331,504,046.92 192,857,951.65 572,072,689.24 26,157,119.16 1,122,591,806.97
2. Increase 21,237,529.59 12,768,709.73 26,651,947.97 1,604,105.51 62,262,292.80
(1) Provision 21,237,529.59 12,768,709.73 26,651,947.97 1,604,105.51 62,262,292.80
3. Decrease 2,832,895.58 18,875,625.98 1,860,715.81 23,569,237.37
(1) Disposal or scrapping 2,832,895.58 18,875,625.98 1,860,715.81 23,569,237.37
4. Effect of changes in exchange rate 306,905.55 157,838.90 849,539.31 54,674.31 1,368,958.07
5. Closing balance 353,048,482.06 202,951,604.70 580,698,550.54 25,955,183.17 1,162,653,820.47
III. Book Value
1. Closing book value 843,652,314.33 87,823,863.84 341,562,744.56 5,015,795.43 1,278,054,718.16
2. Opening book value 855,260,107.06 85,807,417.50 344,342,918.45 6,492,549.53 1,291,902,992.54
(2) Fixed assets with certificate of titles unsettled
Unit: RMB
Item Book value Reasons for unsettlement
After all projects are completed, and the completion and settlement
Function dormitory of Shaoxing Supor 37,210,966.69 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.3 plant of Shaoxing Supor 27,429,391.29 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.1 plant of Shaoxing Supor 25,175,535.90 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.8 plant of Shaoxing Supor 29,812,123.41 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Function cafeteria of Shaoxing Supor 12,402,452.40 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.12 plant of Shaoxing Supor 12,532,437.72 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Transformer substation (35 kV) of Shaoxing
3,359,461.76 procedures are fulfilled, the property ownership certificate shall be
Supor
processed uniformly
After all projects are completed, and the completion and settlement
No.13 plant of Shaoxing Supor 16,241,358.09 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
After all projects are completed, and the completion and settlement
No.14 plant of Shaoxing Supor 24,782,244.58 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
No.15 plant of Shaoxing Supor 43,066,611.03 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Forklift charge room of Shaoxing Supor 919,603.94 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
Transfer procedures of land use right certificate are not settled due to
Generator room of P&R Products 2,141.89
land ownership issue
Water pump building and structures of P&R Transfer procedures of land use right certificate are not settled due to
103,590.88
Products land ownership issue
Extended plant for bakelite workshop of Transfer procedures of land use right certificate are not settled due to
228,651.59
P&R Products land ownership issue
Transfer procedures of land use right certificate are not settled due to
Polishing workshop of P&R Products 106,560.00
land ownership issue
After all projects are completed, and the completion and settlement
Workshop warehouse access canopy of
37,441.98 procedures are fulfilled, the property ownership certificate shall be
Supor LKA
processed uniformly
After all projects are completed, and the completion and settlement
Hood laboratory civil construction
67,586.36 procedures are fulfilled, the property ownership certificate shall be
plumbing and gas ventilation of Supor LKA
processed uniformly
After all projects are completed, and the completion and settlement
Forklift charging room of Supor LKA 163,551.03 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
Construction project of the finished product After all projects are completed, and the completion and settlement
warehouse of SuporLKA and the quality 43,713.48 procedures are fulfilled, the property ownership certificate shall be
office area processed uniformly
After all projects are completed, and the completion and settlement
Design and decoration project of the indoor
1,043,449.94 procedures are fulfilled, the property ownership certificate shall be
exhibition hall for Supor LKA
processed uniformly
After all projects are completed, and the completion and settlement
Water purifier dust-free workshop of Supor
660,644.47 procedures are fulfilled, the property ownership certificate shall be
LKA
processed uniformly
After all projects are completed, and the completion and settlement
High-voltage power distribution room of
5,657,042.52 procedures are fulfilled, the property ownership certificate shall be
Supor LKA
processed uniformly
After all projects are completed, and the completion and settlement
Stove warehouse of Supor LKA 19,292,755.88 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Dormitory of Supor LKA 24,286,349.00 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Underground water pump room of Supor
1,831,296.84 procedures are fulfilled, the property ownership certificate shall be
LKA
processed uniformly
After all projects are completed, and the completion and settlement
Reception room of Supor LKA 399,242.25 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Bottling storage room of Supor LKA 164,178.51 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
R&D workshop of Supor LKA 4,617,124.60 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Test workshop of Supor LKA 4,069,069.01 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Water purifier workshop of Supor LKA 18,926,114.17 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
After all projects are completed, and the completion and settlement
Stove workshop of Supor LKA 18,064,381.99 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
After all projects are completed, and the completion and settlement
Water purifier warehouse of Supor LKA 20,369,174.17 procedures are fulfilled, the property ownership certificate shall be
processed uniformly
Total 353,066,247.37
13. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 21,688,231.49 26,482,779.31
Total 21,688,231.49 26,482,779.31
(1) Details
Unit: RMB
Closing balance Opening balance
Item
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Piecemeal projects 13,569,301.92 13,569,301.92 18,462,190.40 18,462,190.40
Equipment payment 8,118,929.57 8,118,929.57 2,760,998.31 2,760,998.31
Zhejiang WMF factory project 5,259,590.60 5,259,590.60
Total 21,688,231.49 21,688,231.49 26,482,779.31 26,482,779.31
(2) Changes in significant projects
Unit: RMB
Including: amount of interest
rate of interest capitalization
Accumulated investment to
Accumulated amount of
capitalization in current
interest capitalization
in current period
Transferred Completion
budget
period
Opening Other Closing Capital
Item Budgets Increase to fixed percentage
balance decrease balance source
assets (%)
Piecemeal 18,462,1 11,760, 16,653,70 13,569,3
Own fund
projects 90.40 812.30 0.78 01.92
Equipment 2,760,99 6,308,1 950,213.5 8,118,92
Own fund
payment 8.31 44.76 0 9.57
Zhejiang
248,27
WMF 5,259,59 3,024,9 8,284,497.
6,513.7 97.17% 100.00% Own fund
factory 0.60 07.11 71
6
project
248,27
26,482,7 21,093, 25,888,41 21,688,2
Total 6,513.7
79.31 864.17 1.99 31.49
6
Other remarks
As at June 30, 2022, the project budget of Zhejiang WMF's plant was RMB 248,276,513.76, including land use rights of RMB
67,164,093.75.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
14. Right-of-use assets
Unit: RMB
Item Buildings and structures Land Total
I. Original Book Value:
1. Opening balance 227,141,323.93 2,997,832.55 230,139,156.48
2. Increase 37,173,206.06 37,173,206.06
3. Decrease 31,361,857.63 31,361,857.63
4. Effect of changes in exchange rate 4,324.98 90,731.77 95,056.75
5. Closing balance 232,956,997.34 3,088,564.32 236,045,561.66
II. Accumulated depreciation
1. Opening balance 34,518,604.93 91,907.42 34,610,512.35
2. Increase 22,427,196.51 46,195.37 22,473,391.88
(1) Provision 22,427,196.51 46,195.37 22,473,391.88
3. Decrease 11,972,839.10 11,972,839.10
(1) Disposal 11,972,839.10 11,972,839.10
4. Effect of changes in exchange rate -3,526.00 3,930.82 404.82
5. Closing balance 44,969,436.34 142,033.61 45,111,469.95
III. Book Value
1. Closing book value 187,987,561.00 2,946,530.71 190,934,091.71
2. Opening book value 192,622,719.00 2,905,925.13 195,528,644.13
15. Intangible assets
(1) Details
Unit: RMB
Item Land use right Trademark right Software Total
I. Original Book Value:
1. Opening balance 474,749,614.53 47,328,811.32 87,015,884.82 609,094,310.67
2. Increase 5,021,567.82 5,021,567.82
(1) Acquisition 5,021,567.82 5,021,567.82
(2) In-house R&D
(3) Increase from enterprise merger
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
3. Decrease 189,655.17 189,655.17
(1) Disposal 189,655.17 189,655.17
4. Effect of changes in exchange rate 150,933.35 23,729.95 174,663.30
5. Closing balance 474,900,547.88 47,328,811.32 91,871,527.42 614,100,886.62
II. Accumulated Amortization
1. Opening balance 88,398,664.67 28,352,236.77 40,142,545.84 156,893,447.28
2. Increase 4,985,986.95 2,366,440.57 4,230,672.58 11,583,100.10
(1) Provision 4,985,986.95 2,366,440.57 4,230,672.58 11,583,100.10
3. Decrease 64,798.86 64,798.86
(1) Disposal 64,798.86 64,798.86
4. Effect of changes in exchange rate 50,415.00 15,064.94 65,479.94
5. Closing balance 93,435,066.62 30,718,677.34 44,323,484.50 168,477,228.46
III. Book Value
1. Closing book value 381,465,481.26 16,610,133.98 47,548,042.92 445,623,658.16
2. Opening book value 386,350,949.86 18,976,574.55 46,873,338.98 452,200,863.39
The percentage of intangible assets generated from in-house R&D in intangible assets balance is 0.00%.
16. Deferred income tax assets/deferred income tax liabilities
(1) Un-offset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Impairment provision of assets 116,058,220.47 24,889,181.85 140,835,930.67 31,223,473.17
Profits not realized by internal
68,226,299.21 17,055,508.42 65,189,056.55 16,265,944.20
transaction
Deductible losses 9,974,784.69 2,194,452.63 11,483,414.26 2,526,351.14
Accrued expenses 1,403,277,066.18 346,328,975.43 1,387,553,412.35 342,490,567.25
Accrued salary 33,182,654.84 8,295,663.71 55,679,676.14 13,919,919.04
Estimated liabilities 12,172,333.27 1,928,083.32 12,737,298.24 1,910,594.74
Share-based payment 21,404,889.90 5,351,222.16
Book-tax difference for
758,178.56 189,544.64
depreciation of fixed assets
Expected returns 6,406,873.58 1,601,718.39 7,251,899.92 1,812,974.98
The impact of the new lease
3,391,336.38 832,286.64 2,601,983.12 635,171.05
standards
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Total 1,674,094,458.52 408,477,092.55 1,684,090,849.81 410,974,540.21
(2) Deferred income tax assets or liabilities presented in the net amount after offsetting
Unit: RMB
Closing balance of Opening balance of
Deferred income tax Deferred income tax
deferred income tax deferred income tax
Item assets and liabilities at assets and liabilities at
assets or liabilities after assets or liabilities after
the end of the debt period the end of the debt period
offsetting offsetting
Deferred income tax
408,477,092.55 410,974,540.21
assets
(3) Detail about unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 21,242,259.25 9,242,482.90
Deductible losses 25,452,407.22 22,983,929.59
Total 46,694,666.47 32,226,412.49
(4) Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
Year Closing balance Opening balance Remarks
2024 8,287,689.09 8,287,689.09
2025 6,945,189.33 6,945,189.33
2026 7,751,051.17 7,751,051.17
2027 2,468,477.63
Total 25,452,407.22 22,983,929.59
17. Notes payable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance 1,578,200,000.00 500,250,000.00
Total 1,578,200,000.00 500,250,000.00
Other remarks:
The closing balance are all notes payable due within one year, and total notes payable due and unpaid at the end of the period are RMB
0.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
18. Accounts payable
(1) Details
Unit: RMB
Item Closing balance Opening balance
Goods payment 1,072,983,585.28 2,385,533,206.14
Equipment and engineering funds 26,481,386.78 74,164,020.84
Expenses payment 1,455,491,798.89 1,310,003,599.52
Total 2,554,956,770.95 3,769,700,826.50
Other remarks:
As at June 30, 2022, the Group had no significant accounts payable with an age of more than one year.
19. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advances on sales 470,023,043.75 893,741,863.21
Total 470,023,043.75 893,741,863.21
Other remarks:
The contract liabilities mainly involve the advance receipts received by Supor from customers pursuant to sales contracts, which are
collected in accordance with the contractual agreements. Revenue related to these contract will be recognized when Supor has fulfilled
its performance obligations.
The amount with major changes in its book value during the reporting period and its reasons
Unit: RMB
Item Variation Amount Reason of change
Include revenue recognized for amounts in the opening book value of contract
Advances on sales -893,741,863.21
liabilities
Increase due to cash received (excluding amounts recognized as revenue in the
Advances on sales 470,023,043.75
current year)
Total -423,718,819.46 -
20. Employee remunerations payable
(1) Details
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term Employee Remuneration 303,575,560.46 825,452,544.85 915,107,361.74 213,920,743.57
II. Post-employment Benefits - Defined
9,073,751.55 48,356,790.71 52,241,223.38 5,189,318.88
Contribution Plan
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
III. Termination Benefit 9,043,641.87 797,934.15 9,216,701.11 624,874.91
Total 321,692,953.88 874,607,269.71 976,565,286.23 219,734,937.36
(2) Details of short-term employee remuneration
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Wage, bonus, allowance and subsidy 261,402,348.07 736,041,268.48 830,527,590.87 166,916,025.68
2. Employee services and benefits 5,591,592.20 35,558,044.55 32,960,268.70 8,189,368.05
3. Social insurance charges 3,795,053.66 24,823,608.25 24,777,538.57 3,841,123.34
Work-related injury insurance 231,126.92 1,608,313.06 1,630,730.61 208,709.37
Medical and maternity insurance 3,563,926.74 23,215,295.19 23,146,807.96 3,632,413.97
4. Housing provident fund 19,089,114.47 18,996,260.71 92,853.76
5. Labor union expenditure and employees'
32,786,566.53 9,940,509.10 7,845,702.89 34,881,372.74
educational fund
Total 303,575,560.46 825,452,544.85 915,107,361.74 213,920,743.57
(3) Details of defined contribution plan
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension insurance 8,917,574.02 46,899,498.61 50,813,050.78 5,004,021.85
2. Unemployment insurance premium 156,177.53 1,457,292.10 1,428,172.60 185,297.03
Total 9,073,751.55 48,356,790.71 52,241,223.38 5,189,318.88
(4) Termination benefit
The amount of the termination benefit paid by Supor for termination of employment during the reporting period was RMB 9,216,701.11
(the same period in 2021: RMB 18,745,333.69) and the amount outstanding at the end of the period payable was RMB 624,874.91
(December 31, 2021: RMB 9,043,641.87).
21. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT 32,550,273.14 16,872,131.15
Enterprise income tax 179,190,271.97 211,061,366.37
Individual income tax 2,450,288.11 3,008,686.26
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Urban maintenance and construction tax 4,066,598.66 2,435,989.79
Housing property tax 5,115,538.26 8,277,905.43
Land use tax 3,477,015.94 6,675,898.84
Stamp tax 1,240,799.60 4,014,935.73
Education surcharge 1,747,773.15 994,165.50
Local education surcharge 1,175,689.21 753,712.48
Total 231,014,248.04 254,094,791.55
22. Other payables
Unit: RMB
Item Closing balance Opening balance
Other payables 99,060,772.22 110,605,272.21
Total 99,060,772.22 110,605,272.21
(1) Other payables
1) Listing by nature
Unit: RMB
Item Closing balance Opening balance
Deposit as security 73,725,163.98 72,599,903.25
Temporary receipts payable 13,019,095.33 25,902,507.85
Others 12,316,512.91 12,102,861.11
Total 99,060,772.22 110,605,272.21
23. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease obligation due within one year 34,437,379.21 29,191,343.78
Total 34,437,379.21 29,191,343.78
24. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Refund payable 17,235,958.92 20,629,048.91
Endorsed bank acceptances that are not derecognized 32,678,311.69 53,979,357.24
Output tax to be written-off 60,783,657.65 115,201,977.22
Total 110,697,928.26 189,810,383.37
25. Lease obligation
Unit: RMB
Item Closing balance Opening balance
Long-term lease obligation 187,083,421.05 186,611,554.59
Minus: Lease obligation due within one year -34,437,379.21 -29,191,343.78
Total 152,646,041.84 157,420,210.81
Other remarks:
Supor leased employee dormitories and temporary warehouses for a period of one year, which are short-term leases. Supor acted on
these leases without recognizing right-of-use assets and lease obligation.
26. Long-term payable employee remuneration
(1) Long-term employee remuneration payable
Unit: RMB
Item Closing balance Opening balance
II. Termination Benefit 1,626,823.60 1,903,631.69
Total 1,626,823.60 1,903,631.69
27. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Reasons for the balance
Pending lawsuit 11,150,000.00 11,150,000.00 For details, please refer to Note 14. Commitments and contingencies
Financial guarantee
1,022,333.27 1,587,298.24 For details, please refer to Note 14. Commitments and contingencies
contract
Total 12,172,333.27 12,737,298.24
28. Share capital
Unit: RMB
Movements (+, -)
Opening balance Closing balance
Converted
New shares Shares bonus Others Subtotal
capital
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Total shares 808,678,476.00 -24,000.00 -24,000.00 808,654,476.00
Other remarks:
The share capital of the current period is reduced by RMB 24,000.00, which corresponds to the repurchase and write-off of the
24,000 restricted stocks from the dismissed equity incentive objects at the price of RMB 1 per share and results in a reduction of RMB
24,000.00 in share capital.
29. Capital reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share capital premium) 52,997,061.77 76,150,757.24 74,950,397.25 54,197,421.76
Other capital reserve 69,973,278.50 21,404,889.90 91,378,168.40
Total 122,970,340.27 97,555,647.14 74,950,397.25 145,575,590.16
Other notes (including increase and decrease in current period and variation reason):
1) The increase in capital premium (share capital premium) of RMB 76,150,757.24 for the year was due to the amount of RMB
76,150,757.24 set aside for restricted stock repurchase from undistributed profits for the year;
2) The decrease of capital premium (share capital premium) by RMB 74,950,397.25 was due to the grant of r restricted stocks to the
incentive objects, which was partially offset by capital reserve - share premium;
3) The increase in other capital reserve for the year of RMB 21,404,889.90 was due to the recognition of RMB 21,404,889.90 of equity-
settled share-based payment expenses in capital reserve (other capital reserve) during the year, as described in Note 13. Description of
Share-based Payment, to these financial statements.
30. Treasury share
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Treasury share 76,159,897.25 58,185,415.23 74,974,397.25 59,370,915.23
Total 76,159,897.25 58,185,415.23 74,974,397.25 59,370,915.23
Other notes (including increase and decrease in current period and variation reason):
The Proposal on Public Shares Repurchase Plan was reviewed and approved by the 12th Session of the Seventh Board of Directors
and the General Meeting of Shareholders 2021. The aim of this Stock Repurchase Plan is to reduce registered capital fund of the
Company and to implement equity incentive. The increase for the year was due to the repurchase of 1,095,000 shares of the Company
from the parallel market by way of centralized competitive trading for a total amount of RMB 58,179,536.09 and a repurchase handling
fee of RMB 5,879.14 during the reporting period.
2) The decrease of treasury shares by RMB 74,974,397.25 for the year. ① The Proposal of Granting Restricted Stocks To Incentive
Object was considered and approved at the 11th Session of the Seventh Board of Directors of the Company in 2022, and the granting
of restricted stocks to incentive objects decreased treasury shares by RMB 74,950,397.25 for the year; ② The 12th Session of the
Seventh Board of Directors of the Company in 2022 resolved that six incentive objects of the Company no longer meet the incentive
conditions due to their departure, and repurchased and cancelled a total of 24,000 restricted stocks at a price of RMB 1/share, decreasing
the repurchase obligation by RMB 24,000.00 accordingly.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
31. Other comprehensive income
Unit: RMB
Amount incurred during this period
Minus: OCI
Minus: OCI
Opening Current period carried Minus: Attributable Closing
Item carried Attributable
balance cumulative forward Income to non- balance
forward to parent
before income transferred tax controlling
transferred to company
tax to retained expense interest
profit or loss
earning
II. Other
Comprehensi
ve Incomes -
11,100,770.2
To Be -41,522,541.60 11,179,909.75 79,139.46 30,421,771.3
9
Reclassified 1
into the Profit
and Loss
Conversi
on difference
-
of foreign 11,100,770.2
-41,522,541.60 11,179,909.75 79,139.46 30,421,771.3
currency 9
1
financial
statements
Total other -
11,100,770.2
comprehensiv -41,522,541.60 11,179,909.75 79,139.46 30,421,771.3
9
e income 1
32. Surplus reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserve 356,924,811.32 356,924,811.32
Total 356,924,811.32 356,924,811.32
33. Undistributed profits
Unit: RMB
Item Current period Prior period
Undistributed profits at period beginning after adjustment 6,451,748,564.12 6,202,587,444.38
Plus: Net profit belonging to the owners of parent company in this period 932,849,164.03 865,590,446.89
Minus: Ordinary share dividends payable 1,559,494,958.68 1,048,601,714.34
Restricted stock grant 76,150,757.24
Undistributed profits at the end of the period 5,748,952,012.23 6,019,576,176.93
Adjustment of undistributed profits at period beginning:
1). Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations, Undistributed profits
at period beginning was changed by RMB 0.
2). Due to change of accounting policies, Undistributed profits 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.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
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.
34. Operating income and operating cost
Unit: RMB
Amount incurred during this period Amount incurred during last period
Item
Revenue Cost Revenue Cost
Main business 10,256,439,431.57 7,622,713,387.19 10,381,939,743.02 7,695,160,010.24
Other business 67,540,313.25 47,736,567.42 51,936,150.60 30,691,447.73
Total 10,323,979,744.82 7,670,449,954.61 10,433,875,893.62 7,725,851,457.97
Information related to revenue:
Unit: RMB
Contract Classification Total
Commodit type
Including:
Cooking utensils and utensils 3,066,665,527.99
Cooking appliances 4,588,882,638.90
Food cooking appliances 1,568,135,937.20
Other household electric appliances 1,100,295,640.73
Classified by business area
Including:
Domestic 7,457,451,182.53
Foreign 2,866,528,562.29
Classification by time of commodity transfer
Including:
Revenue recognized at a certain time point 10,323,979,744.82
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to performance obligations that have been contracted but not yet performed or not yet completed
at the end of the reporting period is RMB 470,023,043.75, of which RMB 470,023,043.75 is expected to be recognized as revenue in
fiscal 2022.
35. Taxes and surcharges
Unit: RMB
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Amount incurred during Amount incurred during
Item
this period last period
Urban maintenance and construction tax 34,278,449.74 23,543,464.32
Education surcharge 14,678,925.15 10,133,084.03
Housing property tax 6,514,302.51 5,430,607.45
Land use tax -1,684,552.99 443,100.90
Vehicle and vessel use tax 27,176.40 31,696.40
Stamp tax 3,852,928.84 4,432,175.02
Local education surcharge 9,785,950.09 6,787,694.21
Environmental protection tax 46,908.98 31,377.05
Total 67,500,088.72 50,833,199.38
Other remarks:
See Note 6. Taxes, for details of the accrual criteria for each tax and surcharge.
36. Sales expenses
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Advertising, sales promotion, and special gift expenses 793,740,249.03 630,832,596.38
Transportation expenses 300,560,031.00
Employee remuneration 200,599,623.31 190,110,925.64
Office and business traveling expenses 58,158,944.19 56,702,384.07
Others 26,086,187.57 17,337,767.73
Total 1,078,585,004.10 1,195,543,704.82
37. Administrative expense
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Employee remuneration 109,519,189.69 146,444,519.38
Office, business travelling and depreciation and amortization expenses 38,758,513.91 37,087,803.85
Equity incentive costs 21,404,889.90 5,634,982.68
Others 18,975,433.26 24,847,432.15
Total 188,658,026.76 214,014,738.06
38. R&D expenses
Unit: RMB
120
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Amount incurred during Amount incurred during
Item
this period last period
Employee remuneration 97,605,516.41 89,105,947.27
Trial production experiment cost and consumption expenditure 45,231,026.76 60,155,343.04
New product design cost 21,083,513.80 14,765,977.41
Patent and external institutional fees 20,485,620.53 20,576,192.20
Others 10,076,125.92 7,886,964.42
Total 194,481,803.42 192,490,424.34
39. Financial expenses
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Interest revenue -32,112,351.33 -14,007,637.46
Gain or loss on foreign exchange -16,222,180.30 3,200,629.44
Handling fees and others 2,708,735.34 1,070,822.30
Interest expense 4,810,441.61 5,136,071.01
Total -40,815,354.68 -4,600,114.71
40. Other incomes
(1) Classification of other incomes
Unit: RMB
Amount incurred during Amount incurred during
Source of other incomes
this period last period
Government subsidies concerning daily activities 39,595,641.01 32,166,988.75
Refund of individual income tax handling fee 1,092,207.14 922,422.16
Total 40,687,848.15 33,089,410.91
(2) Government subsidies concerning daily activities
Unit: RMB
Amount incurred during this Amount incurred during last
Subsidy item Related to assets/income
period period
Project subsidy 11,916,692.79 17,184,332.70 Related to benefits
Government reward 9,700,000.00 7,820,000.00 Related to benefits
Tax returns 17,978,948.22 7,162,656.05 Related to benefits
Total 39,595,641.01 32,166,988.75
121
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
41. Investment incomes
Unit: RMB
Amount incurred during Amount incurred
Item
this period during last period
Long-term equity investment income under the equity method -457,219.85 1,025,583.40
Investment income from disposal of transactional financial asset 2,801,323.05
Interest for term deposit 29,159,105.64 51,746,405.48
Investment income of debt investment during the holding period 6,713,635.48
Total 38,216,844.32 52,771,988.88
42. Gains from changes in fair value
Unit: RMB
Amount incurred during Amount incurred
Source of gains from changes in fair value
this period during last period
Variation in fair value of financial products 550,529.85 1,005,713.48
Total 550,529.85 1,005,713.48
43. Credit impairment losses
Unit: RMB
Amount incurred during Amount incurred
Item
this period during last period
Loss on bad debts of other receivables -473,075.27 120,275.04
Accounts receivable 25,130,551.51 -20,867,807.16
Notes receivable 171,849.93
Financial guarantee contract 564,964.97
Total 25,222,441.21 -20,575,682.19
44. Asset impairment loss
Unit: RMB
Amount incurred during Amount incurred
Item
this period during last period
I. Loss from Inventory Depreciation and Loss from Impairment of Contract
-16,045,044.53 -2,845,405.73
Performance Cost
II. Fixed asset impairment loss -5,489,685.00
Total -16,045,044.53 -8,335,090.73
122
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
45. Assets disposal income
Unit: RMB
Amount incurred during Amount incurred
Source of assets disposal income
this period during last period
Profits for non-current assets disposal Profits of non-current assets (loss "-") -498,368.94 -540,385.03
Gain on disposal of right-of-use asset 304,915.84
Total -193,453.10 -540,385.03
46. Non-operating income
Unit: RMB
Amount incurred during Amount incurred during Amount included into non-
Item
this period last period recurring profit or loss
Gains from disposal of non-current assets 125,962.34 304,679.19 125,962.34
Including: Profits for fixed assets disposal 125,962.34 304,679.19 125,962.34
Default fine revenue 937,976.52 1,350,795.41 937,976.52
Others 1,224,315.17 375,472.94 1,224,315.17
Total 2,288,254.03 2,030,947.54 2,288,254.03
47. Non-operating expenses
Unit: RMB
Amount incurred during Amount incurred during Amount included into non-
Item
this period last period recurring profit or loss
Donation expenditures 1,120,000.02 1,179,209.52 1,120,000.02
Losses from disposal of non-current assets 245,051.52 254,975.30 245,051.52
Including: Fixed asset disposal loss 245,051.52 254,975.30 245,051.52
Others 1,531,257.29 3,205,689.17 1,531,257.29
Total 2,896,308.83 4,639,873.99 2,896,308.83
48. Income tax expenses
(1) Details
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Current income tax expenses 316,759,106.44 270,175,426.88
Deferred income tax expenses 2,497,447.66 -19,690,158.83
Total 319,256,554.10 250,485,268.05
123
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
Amount incurred during this
Item
period
Total profit 1,252,951,332.99
Income tax expenses based on statutory/applicable tax rate 313,237,833.25
Effect of different tax rate applicable to subsidiaries -2,131,449.66
Effect of prior income tax reconciliation 5,640,101.11
Effect of non-taxable revenue 114,304.96
Effect of deductible temporary differences or deductible losses on unrecognized deferred income tax
2,395,764.44
assets in the current period
Income tax expense 319,256,554.10
49. Other comprehensive income
For details, please refer to Note 31.
50. Items of cash flow statement
(1) Other cash received related to operating activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Receipt of government subsidies 22,708,899.93 32,166,988.75
Receipt of deposit, security and staff reserve fund loan 10,386,022.99 25,374,312.95
Interest revenue 22,572,015.53 11,962,551.57
Others 10,594,834.36 6,883,280.68
Total 66,261,772.81 76,387,133.95
(2) Other cash payments related to operating activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Cash payment for sales expense 899,665,674.62 783,583,395.10
Cash payment for administrative expenses 60,907,658.14 82,114,394.80
Cash payment for R&D expenses 109,717,018.05 103,780,795.72
Donations payment 673,091.00 908,628.40
Deposit security payment for Note payable 434,032,922.14
124
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Other payments 5,512,875.25 5,685,204.38
Total 1,076,476,317.06 1,410,105,340.54
(3) Other cash receipts related to investing activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Cash receipt from recovery of financial products, principal and interest of term
1,380,000,000.00 1,015,003,017.64
deposit
Total 1,380,000,000.00 1,015,003,017.64
(4) Other cash payments related to investing activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Cash payment for financial products and term deposit 550,000,000.00 546,000,000.00
Total 550,000,000.00 546,000,000.00
(5) Other cash receipts related to financing activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Bank loan, etc. 892,000.00
Total 892,000.00
(6) Other cash payments related to financing activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period last period
Repurchased stock and handling fee 58,185,415.23 257,776,914.61
Cash paid for repayment of lease obligation principal and interest 21,490,157.99
Total 79,675,573.22 257,776,914.61
51. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
Amount of this Amount of last
Supplement information
period period
1. Reconciliation of net profit to cash flow from operating activities:
125
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Net profit 933,694,778.89 864,064,244.58
Plus: Impairment provision of assets 16,045,044.53 8,335,090.73
Credit impairment loss -25,222,441.21 20,575,682.19
Depreciation of fixed assets, oil and gas assets, productive biological assets 62,262,292.80 64,637,888.19
Depreciation of right-of-use assets 22,473,391.88 22,581,086.79
Amortization of intangible assets 11,583,100.10 10,682,415.26
Amortization of long-term unamortized expenses 309,232.79
Loss on disposal of fixed assets, intangible assets and other long-term assets ("-"
193,453.10 540,385.03
for gains)
Fixed assets retirement loss ("-" for gains) 119,089.18 461,304.25
Loss from fair value changes ("-" for earnings) -550,529.85 -1,005,713.48
Financial expenses ("-" for gains) -16,222,180.30 8,335,355.17
Investments losses ("-" for gains) -38,216,844.32 -52,771,988.88
Decrease of deferred income tax assets ("-" for increase) 2,497,447.66 -19,533,087.43
Increase of deferred income tax liabilities ("-" for decrease)
Decrease in inventories ("-" for increase) 799,978,326.78 439,495,557.02
Decrease in operating receivables ("-" for increase) 510,296,788.15 -451,477,284.90
Increase in operating payable ("-" for decrease) -933,306,325.73 -180,766,481.72
Others -36,780,525.33 -434,032,922.14
Net cash flows from operating activities 1,308,844,866.33 300,430,763.45
2. Significant investing and financing activities not related to cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds due within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 3,008,602,558.47 1,003,957,665.61
Minus: Opening balance of cash 2,443,731,679.06 1,655,785,919.04
Plus: closing balance of cash equivalents
Minus: opening balance of cash equivalents
Net increase in cash and cash equivalents 564,870,879.41 -651,828,253.43
(2) Cash and cash equivalents
Unit: RMB
126
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Item Closing balance Opening balance
I. Cash 3,008,602,558.47 2,443,731,679.06
Including: Cash on hand 45,511.13 71,122.80
Cash in bank on demand for payment 2,981,886,179.44 2,420,300,342.03
Other monetary capital on demand for payment 26,670,867.90 23,360,214.23
III. Balance of Cash and Cash Equivalents at the End of the Period 3,008,602,558.47 2,443,731,679.06
52. Assets with title or use right restrictions
Unit: RMB
Item Closing book value Reasons for restrictions
Monetary capital 58,000,000.00 Deposit security for advance payment financing
Monetary capital 412,530,000.00 Security for bank acceptance
Monetary capital 550,000.00 E-commerce platform security and frozen funds
Monetary capital 263,468.43 Cancellation of branch bank account frozen amount
Total 471,343,468.43
53. Foreign currency monetary items
(1) Foreign currency monetary item
Unit: RMB
Closing balance in foreign Closing balance of converted
Item Conversion rate
currencies RMB
Monetary capital
Including: USD 46,346,334.49 6.7114 311,048,789.30
EUR 3,604,059.21 7.0084 25,258,688.57
GBP 29.80 8.1365 242.47
VND 6,062,525,682.50 0.000288352 1,748,141.41
SGD 88,724.39 4.8170 427,385.39
IDR 10,022,348,361.00 0.000451 4,520,079.11
Accounts receivable
Including: USD 45,120,212.77 6.7114 302,819,795.98
VND 30,545,065,505.50 0.000288352 8,807,730.73
IDR 2,486,517,195.00 0.000451 1,121,419.25
Accounts payable
127
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Including: USD 1,785,999.08 6.7114 11,986,554.23
GBP 1,007,800.55 8.1365 8,199,969.18
EUR 620.00 7.0084 4,345.21
VND 51,832,208,886.84 0.000288352 14,945,921.10
SGD 115,375.00 4.8170 555,761.38
IDR 1,258,157,747.28 0.000451 567,429.14
VIII. Change on Merger Scope
1. Others
There was no change on merger scope in the current period.
IX. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise Group
Main Shareholding ratio
Place of Business Acquisition
The subsidiary name operating
registration nature method
place Direct Indirect
Zhejiang Supor Electrical Appliance Manufacturing Manufacturing
Hangzhou Hangzhou industry 100.00% Establishment
Co., Ltd. [Note 1]
Zhejiang Shaoxing Supor Domestic Electrical Manufacturing
Shaoxing Shaoxing industry 100.00% Establishment
Appliances Co., Ltd. [Note 1]
Manufacturing
Supor (Vietnam) Co., Ltd [Note 1] Vietnam Vietnam industry 100.00% Establishment
Wuhan Supor Recycling Co., Ltd [Note 1] Wuhan Wuhan Commerce 100.00% Establishment
Manufacturing
Wuhan Supor Cookware Co., Ltd [Note 1] & [Note 2] Wuhan Wuhan industry 25.00% 75.00% Establishment
Hangzhou Omegna Commercial Trade Co., Ltd [Note
Hangzhou Hangzhou Commerce 100.00% Establishment
1]
Shanghai Supor Cookware Marketing Co., Ltd [Note
Shanghai Shanghai Commerce 100.00% Establishment
1]
Enterprise merger
Manufacturing
Wuhan Supor Pressure Cooker Co., Ltd [Note 1] Wuhan Wuhan industry 100.00% under the same
control
Enterprise merger
Manufacturing
Zhejiang Supor Plastic & Rubber Co., Ltd [Note 1] Yuhuan Yuhuan industry 100.00% under the same
control
Enterprise merger
Yuhuan Supor Cookware Marketing Co., Ltd [Note 1] Yuhuan Yuhuan Commerce 100.00% not under the
same control
Enterprise merger
SEADA [Note 1] Singapore Singapore Commerce 51.00% under the same
control
AFS Vietnam Management Co., Ltd [Note 1] [Note Enterprise merger
Vietnam Vietnam Commerce 100.00%
3] under the same
128
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
control
Manufacturing
WMF (Shanghai) Co., Ltd [Note 1] Shanghai Shanghai industry 100.00% Establishment
Manufacturing
Zhejiang WMF Housewares Co., Ltd [Note 1] Yuhuan Yuhuan industry 100.00% Establishment
Zhejiang Shaoxing Supor Housewares Co., Ltd. Manufacturing
Shaoxing Shaoxing industry 100.00% Establishment
[Note 1]
Enterprise merger
Shanghai SEB Electrical Appliances Co., Ltd [Note Manufacturing
Shanghai Shanghai industry 100.00% under the same
1]
control
Zhejiang Supor Large Kitchen Appliance Co., Ltd Manufacturing
Shaoxing Shaoxing industry 100.00% Establishment
[Note 1]
PT GROUPE SEB INDONESIA MSD [Note 4] Indonesia Indonesia Commerce 66.67% Establishment
Zhejiang Supor Water Heater Co., Ltd. [Note 1] [Note Manufacturing
Shaoxing Shaoxing industry 52.00% Establishment
5]
Hainan Supor E-commerce Co., Ltd. [Note 1] [Note
Hainan Hainan Commerce 100.00% Establishment
6]
Hainan Tefal Trade Co., Ltd. [Note 1] [Note 6] Hainan Hainan Commerce 100.00% Establishment
Description that the shareholding ratio in the subsidiary is different from the voting right proportion:
Note 1: Hereinafter referred to as Zhejiang Supor Electrical, Shaoxing Supor, Wuhan Recycling, Wuhan Cookware, Omegna,
Shanghai Marketing, Wuhan PC, P&R, Yuhuan Sales Company, SEADA, AFS, Shanghai WMF, Zhejiang WMF, Shaoxing Supor
Housewares, Shanghai SEB, Supor kitchen & electric appliance, Supor Water Heater, Hainan Supor E-commerce and Hainan Tefal
Trade.
Note 2: The Company is subsidiary of Wuhan Supor Pressure Cooker Co., Ltd.; of which, Wuhan Supor Pressure Cooker Co.,
Ltd holds 75% shares and the Company holds 25% shares.
Note 3: The Company holds 51% of the equity of SEADA, and AFS is a 100% owned subsidiary of SEADA.
Note 4: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA, a subsidiary of the Company and the third
party PT MULTIFORTUNA in Indonesia this year. SEADA holds 66.67% shares and PT MULTIFORTUNA holds 33.33% shares.
Note 5: Zhejiang Supor Water Heater Co., Ltd. is jointly invested and established by the Company and Supor Group Co., Ltd.
The Company holds 52% shares and Supor Group Co., Ltd holds 48% shares.
Note 6: Hainan Supor E-commerce and Hainan Tefal Trade are 100% owned subsidiaries of Zhejiang Supor Electrical. Ending
on the disclosure date of this report, Hainan Supor Technology Co., Ltd. has changed new company name of Hainan Tefal Trade Co.,
Ltd. and above registration change was completed on July 26, 2022.
(2) Significant non-wholly-owned subsidiaries
Unit: RMB
Profit or loss attributable Balance of minority
Holding proportion of Dividend declared to
The subsidiary name to non-controlling shareholders' equities at
non-controlling interest non-controlling interest
interest the end of the period
SEADA 49.00% -88,014.04 6,974,435.97
AFS 49.00% 78,122.63 25,101.14
GSIM 33.33% 461,416.16 2,190,774.85
Supor Water Heater 48.00% 394,090.11 27,402,536.42
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
(3) Main financial information of significant non-wholly-owned subsidiaries
Unit: RMB
Closing balance Opening balance
The
subsidiar Non- Current Non- Non- Current Non-
Current Total Total Current Total Total
y name current liabilities current current liabilities current
assets assets liabilities assets assets liabilities
assets : liabilities assets : liabilities
3,528,62 7,852,58 11,381,2 7,949,52 7,949,52 2,201,13 7,691,05 9,892,19 7,407,01 7,407,01
SEADA
6.69 6.71 13.39 2.64 2.64 6.53 9.63 6.16 0.28 0.28
3,024,19 33,729.2 3,057,92 740,565. 740,565. 3,972,56 410,013. 4,382,57 976,857. 266,917. 1,243,77
AFS
2.95 0 2.15 64 64 1.59 58 5.17 81 90 5.71
16,985,1 3,293,58 20,278,6 4,313,46 577,114. 4,890,57 16,835,6 3,754,65 20,590,3 5,525,70 487,900. 6,013,61
GSIM
12.54 4.07 96.61 4.11 77 8.89 57.30 4.59 11.89 9.41 80 0.21
Supor
76,177,5 3,875,63 80,053,1 22,683,3 22,683,3 82,108,1 3,773,93 85,882,0 29,357,3 29,357,3
Water
11.44 3.44 44.87 79.65 79.65 07.10 1.89 38.99 61.93 61.93
Heater
Unit: RMB
Amount incurred during this period Amount incurred during last period
The
Cash flows Cash flows
subsidiary Total Total
Operating from Operating from
name Net profit comprehensiv Net profit comprehensiv
income operating income operating
e income e income
activities activities
SEADA 487,263.80 880,735.29 946,504.87 202,599.96 322,031.26 -104,497.72 -867,851.46 231,465.12
AFS 159,433.94 238,911.66 913,081.75 108,108.08 91,449.40 -47,709.90
GSIM 7,834,711.92 699,115.39 811,416.04 699,146.18 6,762,711.58 -2,047,878.29 -1,548,286.82 -2,902,272.80
Supor Water 32,635,218.2 33,709,631.1
845,088.15 845,088.15 -1,246,208.23 -567,999.40 -567,999.40 -5,936,272.42
Heater 7 5
2. Equity in joint venture or associated enterprise
(1) Significant joint venture or associated enterprise
Accounting
Shareholding ratio
method for the
Main
Name of joint venture or Place of investment in
operating Business nature
associated enterprise registration joint venture or
place Direct Indirect
associated
enterprise
Manufacturing
Wuhan Anzai Cookware Co., Ltd. Wuhan Wuhan 30.00% Equity method
industry
(2) Main financial information of significant associated enterprises
Unit: RMB
Closing balance/current Opening balance/amount
period cumulative incurred during last period
Current assets 121,253,241.05 146,447,108.80
Non-current assets 44,420,038.70 46,881,291.93
Total assets 165,673,279.75 193,328,400.73
130
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Current liabilities: 23,686,164.65 49,304,509.03
Non-current liabilities 540,000.00 640,000.00
Total liabilities 24,226,164.65 49,944,509.03
Attributable to shareholders' equities of the parent company 141,447,115.10 143,383,891.70
Proportionate share in net assets 42,434,134.53 43,015,167.51
--Goodwill 22,585,444.13 22,585,444.13
Book value of investments in associated enterprises 65,019,578.66 65,600,611.64
Operating income 107,194,897.86 123,513,682.51
Net profit -1,936,776.60 2,548,754.93
Total comprehensive income -1,936,776.60 2,548,754.93
X. Risks related to financial instruments
(I) Risk management objectives and policies
Supor aims to seek the appropriate difference between risks and returns, minimize the negative impact of risks on Supor's
operating performance, and maximize the interests of shareholders and other equity investors. 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 refers to the risk of fluctuations in the fair value of financial instruments or future cash flows due to
changes in foreign exchange rate. Supor's foreign exchange risk relates mainly to foreign currency monetary assets and liabilities.
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 notes to others - foreign currency monetary items for details in foreign currency financial assets and liabilities at
the end of the year.
Sensitivity analysis:
Assuming that other risk variables other than the exchange rate remain unchanged, the change in the exchange rate of RMB
against all foreign currencies on June 30of Supor will lead to the increase of shareholders' equities and net profit by 1%. The influence
is presented by converting it to RMB at the spot rate on the balance sheet day.
Shareholders' equities Net profit
June 30, 2022
USD 4,619,175.06 4,619,175.06
EUR 189,407.58 189,407.58
GBP -61,497.95 -61,497.95
VND -35,120.43 -35,120.43
SGD -1,066.22 -1,066.22
IDR 39,577.74 39,577.74
131
2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Total 4,750,475.78 4,750,475.78
December 31, 2021
USD 3,757,640.60 3,757,640.60
EUR 395.31 395.31
GBP 2.17 2.17
VND -93,874.85 -93,874.85
SGD -1,854.16 -1,854.16
IDR 49,730.04 49,730.04
Total 3,712,039.11 3,712,039.11
(2) Interest risk - cash flow change risk
Interest risk refers to the risk of fluctuations in the fair value of financial instruments or future cash flows due to changes in market
interest rate. As of June 30, 2022, Supor had no bank borrowings, and Supor's gross profit and shareholders' equities were not
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 are mainly deposited in financial organizations with good credit, and entrusted
financial products are issued by financial organizations with good credit. The management believes that there is no significant credit
risk and it is not expected to cause losses to Supor due to the other party's default.
The maximum credit risk exposure assumed by Supor is the book value of each financial asset in the balance sheet (including
derivative financial instruments). Supor has not provided any guarantee that could expose it to credit risk other than the financial
guarantee set out in Note XIV. The exposure of the maximum credit risk assumed by the above financial guarantees on the balance
sheet date has been disclosed in Note XIV.
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 the Supor are mainly bank acceptance 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 the 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, and 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.
At the end of the year, Supor's accounts receivable from related party SEB ASIA LTD accounted for 58.68% of closing balance
(70.35% as of December 31, 2021), and the Company's account receivables are expected to have less credit risk. As the Company's
credit risks fall into several business partners and customers, as of June 30, 2022, 18.85% (11.28% as of December 31, 2021) of the
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total accounts receivable was due from the five largest customers of the Company after deducting receivables from related party SEB
ASIA LTD. The Company had 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.
(a) Analysis of receivables not past due but impaired and receivables past due but not impaired are as follows:
Unit: RMB
Closing balance
Item Past due nor impaired
Neither past due nor
Total
impaired
Within 1 year 1-2 years Over 2 years
Receivables financing 232,348,975.14 232,348,975.14
Other receivables 1,523,227.27 1,523,227.27
Subtotal 233,872,202.41 233,872,202.41
(Continued)
Opening balance
Item Past due nor impaired
Neither past due nor
Total
impaired
Within 1 year 1-2 years Over 2 years
Receivables financing 3,312,225.62 3,312,225.62
Other receivables 1,237,370.65 1,237,370.65
Subtotal 4,549,596.27 4,549,596.27
(b) Please refer to Note VII "4. Accounts receivable" for receivables with impairment provision made on individual basis.
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 asset liabilities, and finally maintains a balance between financing sustainability
and flexibility.
Financial instruments classified based on remaining time period till maturity
Unit: RMB
Closing balance
Item
Book value Within 1 year 1-3 years Over 3 years Total
Financial assets
Monetary capital 3,479,946,026.90 3,479,946,026.90 3,479,946,026.90
Transactional financial assets 220,550,529.85 220,550,529.85 220,550,529.85
Notes receivable 35,454,679.55 35,454,679.55 35,454,679.55
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Accounts receivable 2,151,142,929.18 2,151,142,929.18 2,151,142,929.18
Receivables financing 232,348,975.14 232,348,975.14 232,348,975.14
Other receivables 16,635,885.82 16,635,885.82 16,635,885.82
Other debt investments 586,813,657.54 632,835,000.00 632,835,000.00
Other current assets [note] 592,407,534.24 592,407,534.24 592,407,534.24
Subtotal 7,315,300,218.22 6,728,486,560.68 632,835,000.00 7,361,321,560.68
Financial liabilities
Notes payable 1,578,200,000.00 1,578,200,000.00 1,578,200,000.00
Accounts payable 2,554,956,770.95 2,554,956,770.95 2,554,956,770.95
Other payables 99,060,772.22 99,060,772.22 99,060,772.22
Other current liabilities 32,678,311.69 32,678,311.69 32,678,311.69
Lease obligation 187,083,421.05 36,159,248.17 100,603,828.59 79,087,554.02 215,850,630.78
Subtotal 4,451,979,275.91 4,301,055,103.03 100,603,828.59 79,087,554.02 4,480,746,485.64
Note: Other current assets are term deposits for the purpose of earning interest.
(Continued)
Opening balance
Item
Book value Within 1 year 1-3 years Over 3 years Total
Financial assets
Monetary capital 2,654,052,417.47 2,654,052,417.47 2,654,052,417.47
Transactional financial assets 180,312,742.31 180,312,742.31 180,312,742.31
Notes receivable 54,879,357.24 54,879,357.24 54,879,357.24
Accounts receivable 2,716,945,985.33 2,716,945,985.33 2,716,945,985.33
Receivables financing 3,312,225.62 3,312,225.62 3,312,225.62
Other receivables 12,159,756.67 12,159,756.67 12,159,756.67
Other debt investments 298,191,205.49 322,745,000.00 322,745,000.00
Other current assets [note] 1,863,761,369.84 1,863,761,369.84 1,863,761,369.84
Subtotal
7,783,615,059.97 7,485,423,854.48 322,745,000.00 7,808,168,854.48
Financial liabilities
Notes payable 500,250,000.00 500,250,000.00 500,250,000.00
Accounts payable 3,769,700,826.50 3,769,700,826.50 3,769,700,826.50
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Other payables 110,605,272.21 110,605,272.21 110,605,272.21
Other current liabilities 53,979,357.24 53,979,357.24 53,979,357.24
Lease obligation 186,611,554.59 37,993,728.54 98,489,145.81 75,992,456.73 212,475,331.08
Subtotal
4,621,147,010.54 4,472,529,184.49 98,489,145.81 75,992,456.73 4,647,010,787.03
Note: Other current assets are term deposits for the purpose of earning interest.
(II) Transformation of financial assets
Financial assets that have been transferred but not collectively terminated for recognition
For details, please refer to the relevant description of Note VII "3. Notes receivable financing and 24. Other current liabilities" of this
financial statement.
XI. 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 of fair value Level 2 of fair value Level 3 of fair value
Total
measurement measurement measurement
I. Recurring fair value
-- -- -- --
measurement
(I) Transactional financial asset 220,550,529.85 220,550,529.85
(II) Other debt investments 586,813,657.54 586,813,657.54
(III)Receivables financing
（1）Notes receivable 232,348,975.14 232,348,975.14
II. Non-continued measurement
-- -- -- --
of fair value
2. Basis of determining the market price of continuous and non-continuous level 1 fair value
measurement project
None
3. Continuous and non-continuous level 2 fair value measurement item, using valuation
technique and quantitative and qualitative information of important parameters
For other debt investments and receivables financing, the fair value is determined by discounting future cash flows.
4. Continuous and non-continuous level 3 fair value measurement item, using valuation
technique and quantitative and qualitative information of important parameters
For the financial products in financial assets measured at the fair value with their changes included into the current profits and losses,
its fair value is determined by the method of discounting future cash flows which is calculated at the agreed expected rate of return.
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5. Details of the fair value of the financial assets and financial liabilities not measured at fair
value
On June 30th, there is no significant difference between the book value and fair value of Supor's financial assets and liabilities.
XII. Related parties and connected transactions
1. Parent company
Holding proportion Holding voting rights
Place of
The parent company name Business nature Registered capital over the parent over the parent
registration
company (%) company (%)
Investment
SEB INTERNATIONALE S.A.S France EUR 830 Million 82.44% 82.44%
company
Remarks on the parent company
Business scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operation
purpose), namely, purchase and subscription of stock, bonds, the 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
sales of home appliance for the purpose of distribution and rendering of relevant services, all activities directly or indirectly contributing
to the realization of these operations, particularly in the areas of movable properties, real estate, finance, commerce and industry
operation.
The Company's final controlling party is SEB S.A. .
2. Company's subsidiaries
Please refer Note IX, 1. "Equity in subsidiaries" for details on the Company's subsidiaries.
3. Joint ventures and associated enterprises of the Company
Please refer to Note IX, 2. "Equity in joint venture or associated enterprise" for details on the Company's significant joint ventures and
associated enterprises.
Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current period or
in prior period but with balance in current period are as follows:
Name of 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 Relationships with the Company
SEB S.A. Ultimate controlling shareholder
SEB ASIA LTD. Same controlling shareholder
TEFAL S.A.S. Same controlling shareholder with the controlling shareholder
ALL-CLAD METALCRAFTERS LLC Same controlling shareholder
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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
CALOR SAS Same controlling shareholder with the controlling shareholder
Supor Group Co., Ltd. The company controlled by related natural person
Zhejiang Supor Sanitary Ware Co., Ltd. The company controlled by related natural person
ETHERA Same controlling shareholder with the controlling shareholder
WMF CONSUMER ELECTRIC GMBH Same controlling shareholder
WMF Consumer Goods (Shanghai) Co, Ltd. Same controlling shareholder
WMF GROUPE GMBH Same controlling shareholder
GROUPE SEB VIETNAM JOINT STOCK COMPANY Same controlling shareholder
GROUPE SEB SINGAPORE Same controlling shareholder
GROUPE SEB THAILAND Same controlling shareholder
Emsa Taicang Co., Ltd. Same controlling shareholder
WMF (HE SHAN) MANUFACTURING COMPANY LIMITED Same controlling shareholder
ROWENTA WERKE GMBH Same controlling shareholder with the controlling shareholder
EMSA GMBH Same controlling shareholder
GROUPE SEB USA Same controlling shareholder
GROUPE SEB CANADA Same controlling shareholder
GROUPE SEB ANDEAN S.A. Same controlling shareholder
GROUPE SEB IBERICA Same controlling shareholder
GROUPE SEB SCHWEIZ GMBH Same controlling shareholder
SEB DO BRASIL PRODS.DOM.LTDA Same controlling shareholder
GROUPE SEB KOREA,LTD Same controlling shareholder
GROUPE SEB MALAYSIA Same controlling shareholder
GS INNOVATION CENTER CO., LTD. Same controlling shareholder
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. The company controlled by related natural person
Zhejiang Sukean Pharmaceutical Co., Ltd The company controlled by related natural person
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5. Situations of connected transaction
(1) Connected transactions in the purchase and sale of commodities, provision and acceptance of labor
services
Purchase of commodities and receiving of services
Unit: RMB
Contents of Amount Exceeding Amount
Transaction
Related party connected incurred during transaction incurred during
quota granted
transaction this period amount or not last period
Finished
Wuhan Anzai Cookware Co., Ltd. 64,451,093.92 No 72,149,324.35
products
Wuhan Anzai Cookware Co., Ltd. Accessories 42,746,852.61 No 50,308,402.62
Finished
GROUPE SEB EXPORT 4,569,624.34 No 4,681,888.48
products
TEFAL S.A.S. Accessories 5,564,791.38 No 11,906,028.49
Finished
LAGOSTINA S.P.A. 2,194,942.00 No 1,427,551.91
products
Finished
SEB INTERNATIONAL SERVICE S.A.S. No 89,892.57
products
SEB INTERNATIONAL SERVICE S.A.S. Accessories 234,206.73 No 0.00
GROUPE SEB MOULINEX Accessories 1,839,097.62 No 4,079,912.51
CALOR SAS Accessories No 758,681.93
WMF (HE SHAN) MANUFACTURING Finished
214,089.78 No 156,628.32
COMPANY LIMITED products
Finished
GROUPE SEB THAILAND No 237,155.10
products
Finished
EMSA GMBH No 312,245.49
products
ETHERA Accessories 319,583.04 No 2,092,156.82
Finished
WMF GROUPE GMBH 12,387,300.16 No 21,197,316.07
products
Finished
WMF Consumer Goods (Shanghai) Co, Ltd. No 357,692.92
products
Finished
Supor Group Co., Ltd. 7,471.00 No 198,449.00
products
Sale of commodities and rendering of services
Unit: RMB
Contents of connected Amount incurred Amount incurred
Related party
transaction during this period during last period
SEB ASIA LTD. Finished products 2,599,590,781.21 3,211,594,813.23
SEB ASIA LTD. Accessories 2,648,083.19 2,303,452.69
S.A.S. SEB Finished products 10,143,181.26 11,211,990.95
S.A.S. SEB Accessories 495,400.35 471,368.44
TEFAL S.A.S. Finished products 5,771,600.06 5,555,389.15
TEFAL S.A.S. Accessories 7,810,501.26 8,550,683.56
GROUPE SEB MOULINEX Finished products 11,729,902.13 20,125,024.32
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Supor Group Co., Ltd. Finished products 2,459,900.56 1,762,877.47
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. Finished products 216,700.00
SEB INTERNATIONAL SERVICE S.A.S. Finished products 50,257.57
SEB INTERNATIONAL SERVICE S.A.S. Accessories 10,678,771.92 9,538,342.63
LAGOSTINA S.P.A. Finished products 49,269.52 85,928.20
LAGOSTINA S.P.A. Accessories 781,661.90 525,338.80
ALL-CLAD METALCRAFTERS LLC Finished products 355,563.53
IMUSA USA LLC Finished products 9,872,683.87 7,116,454.14
IMUSA USA LLC Accessories 17,306.67
WMF Consumer Goods (Shanghai) Co, Ltd. Finished products 219,109.25 210,726.93
GROUPE SEB CANADA Finished products 8,281,052.82 6,332,810.49
GROUPE SEB VIETNAM JOINT STOCK COMPANY Finished products 12,712,078.20 15,780,546.35
GROUPE SEB VIETNAM JOINT STOCK COMPANY Accessories 11,067.77 11,451.68
CALOR SAS Finished products 22,887,048.00
GROUPE SEB ANDEAN S.A. Accessories 2,785,092.32 536,496.98
Wuhan Anzai Cookware Co., Ltd. Finished products 136,200.50
Wuhan Anzai Cookware Co., Ltd. Accessories 11,947.34
(2) Related party leases
Supor as the lessor:
None
Supor as the leasee:
Unit: RMB
Right-of-use asset Interest expense on
Types of Right-of-use asset
Lessor leasee confirmed on lease obligation accured
leased assets purchased in 2022
January 1, 2022 in 2022
Wuhan Cookware Real estate 12,199,661.48 232,535.11
Supor Group Co., Ltd. Zhejiang Supor Electrical Real estate 41,784,917.90 749,408.06
Shaoxing Supor Real estate 3,987,385.03 69,393.51
Other remarks:
This item is the right-of-use asset confirmed under the implementation of the New Lease Standards.
Unit: RMB
Lease income for current Lease income for last
Lessor leasee Types of leased assets
period period
Supor Group Co., Ltd. P&R Real estate 68,114.29 59,600.00
Other remarks:
This is the short-term lease cost under the implementation of the New Lease Standards.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
(3) Key management personnel's emoluments
Unit: RMB10,000
Item Amount incurred during this period Amount incurred during last period
Key management personnel's emoluments 1,091.43 690.24
(4) Other connected transaction
Unit: RMB
① Water and electricity charges
Amount incurred during this Amount incurred during last
Selling parties Purchasing parties
period period
Zhejiang Supor Electrical 106,169.13 215,047.66
Supor Group Co., Ltd. Wuhan Cookware 31,382.22
Shaoxing Supor 29,985.43
The Company Supor Group Co., Ltd. 530,222.21
② Property fee, maintenance cost and berth fee
Amount incurred during this Amount incurred during last
Service renderer Service receiver
period period
The Company 290,380.76
Supor Group Co., Ltd. Zhejiang Supor Electrical 97,142.86
Wuhan Cookware 164,285.71
③ Consulting fee
Amount incurred during this Amount incurred during last
Service renderer Service receiver
period period
The Company 448,824.00 448,824.00
Wuhan Cookware 227,046.00 -1,072,070.75
SEB ASIA LTD.
Shaoxing Supor 318,516.00 318,516.00
Zhejiang Supor Electrical 205,614.00 -972,694.61
④ Cost of international shopping center
Amount incurred during this Amount incurred during last
Service renderer Service receiver
period period
Shaoxing Supor 1,680,000.00 1,680,000.00
SEB DEVELOPPMENT SAS Zhejiang Supor Electrical 1,320,000.00 1,320,000.00
Wuhan Cookware 834,070.74 4,495,122.41
⑤ Testing services, etc.
Amount incurred during Amount incurred during
Service renderer Service receiver
this period last period
The Company GS INNOVATION CENTER CO., LTD. 62,842.64 31,967.45
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Shaoxing Supor 149,192.38
Zhejiang Supor Electrical 236,616.00 194,180.87
GROUPE SEB VIETNAM JOINT STOCK
AFS 1,586,131.90 1,757,050.03
COMPANY
GS INNOVATION CENTER CO.,
Shaoxing Supor 1,256,325.00 1,183,987.50
LTD.
⑥ Warehousing services
Amount incurred during this Amount incurred during last
Service renderer Service receiver
period period
The Company 2,519,895.82
Wuhan Cookware 986,402.20
SEB ASIA LTD.
Zhejiang Supor Electrical 351,667.60
Shaoxing Supor 1,764,063.02
⑦ Pursuant to the Technical License Contract entered into by and 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 to use its five invention patents including "Household
appliance equipped with safety valve of elastomer for cooking food under pressure" on a compensation basis. According to related
terms in the contract signed by both parties, use charges are accrued at 3% of revenue from sales of products licensed. In the current
period, Wuhan Supor Cookware Co., Ltd shall pay S.A.S. SEB technology use charges of RMB 188,839.30 (2021: RMB 959,469.90),
and as of June 30, 2022, a balance of RMB 27,003.47 has not been paid (December 31, 2021: RMB 59,092.58).
⑧ Pursuant to the Trademark License entered into by and between Wuhan Cookware and LAGOSTINA SPA. on December 15,
2014, LAGOSTINA SPA. licensed Wuhan Cookware to use its trademark "LAGE" on a compensation basis. According to the related
terms and conditions of the contract signed by both parties, the usage fee is calculated according to 4% of the sales of licensed products.
This year, Wuhan Cookware should pay LAGOSTINA SPA. trademark usage fee RMB 14,164.15 (2021: RMB 242,952.24), and on
June 30, 2022, there was still left RMB 1,366,729.81 to be paid (December 31, 2021: RMB 1,352,565.66).
⑨ Pursuant to the Trademark License Agreement entered into by and between Omegna and LAGOSTINA SPA. on December 5,
2016, LAGOSTINA SPA. licensed Omegna to use its trademark "LAGE" on a compensation basis. According to the related terms and
conditions of the contract that signed by both parties, the usage fee should be accounted according to 4% of the achieved sales of the
licensed products. This year, Omegna should pay LAGOSTINA SPA trademark usage fee RMB 60,208.52 (RMB 296,857.06 in 2021),
and there was still left RMB 3,983,949.59 to be paid on June 30, 2022 (RMB 3,923,741.07 on December 31, 2021).
⑩ Shaoxing Supor Company 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 Company on April 25, 2016 with ETHERA.
According to the related terms and conditions of the contract that signed by both parties, the usage fee should be accounted according
to 4% of the achieved sales of the licensed products. This year, Shaoxing Supor should pay ETHERA trademark usage fee RMB
10,204.23 (RMB 26,477.63 in 2021), and there was still left RMB 4,345.21 to be paid on June 30, 2022 (RMB 4,508.27 on December
31, 2021).
6. Receivables and payables by related parties
(1) Items receivable
Unit: RMB
Item Related party Closing balance Opening balance
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
SEB ASIA LTD. 1,316,557,188.89 52,662,287.56 1,997,332,966.57 79,893,318.66
receivable
S.A.S. SEB 9,841,435.47 393,657.42 6,147,139.48 245,885.58
TEFAL S.A.S. 6,475,188.73 259,007.55 8,875,016.25 355,000.65
SEB INTERNATIONAL SERVICE
6,361,517.07 254,460.68 4,644,231.13 185,769.25
S.A.S.
GROUPE SEB MOULINEX 4,038,642.41 161,545.70 11,459,698.09 458,387.92
IMUSA USA LLC 9,032,734.67 361,309.39 1,014,864.16 40,594.57
Supor Group Co., Ltd. 365,082.69 18,254.13 4,899.50 244.98
WMF Consumer Goods (Shanghai)
423,930.90 16,957.24 186,011.75 7,440.47
Co, Ltd.
GROUPE SEB CANADA 3,239,592.70 129,583.71 4,763,025.58 190,521.02
GROUPE SEB VIETNAM JOINT
13,515,419.09 540,616.76 14,256,667.31 570,266.69
STOCK COMPANY
GROUPE SEB ANDEAN S.A. 2,585,908.06 103,436.32 832.03 33.28
Wuhan Anzai Cookware Co., Ltd. 13,500.50 675.03
LAGOSTINA S.P.A. 473,709.12 18,948.36 563,856.28 22,554.25
GS INNOVATION CENTER CO.,
325,793.68 13,031.75 290,340.44 11,613.62
LTD.
Total 1,373,249,643.98 54,933,771.60 2,049,539,548.57 81,981,630.94
Advance
Supor Group Co., Ltd. 71,520.00
payment
Total 71,520.00
Other
Supor Group Co., Ltd. 145,000.00 38,750.00 145,000.00 31,250.00
receivables
Total 145,000.00 38,750.00 145,000.00 31,250.00
(2) Items payable
Unit: RMB
Item Related party Ending book balance Opening book balance
Accounts
Wuhan Anzai Cookware Co., Ltd. 12,090,496.70 25,709,129.31
payable
WMF GROUPE GMBH 3,913,213.46 9,027,718.65
GROUPE SEB EXPORT 3,324,314.50
TEFAL S.A.S. 3,158,249.22 6,211,218.34
S.A.S. SEB 27,003.47 61,735.76
LAGOSTINA S.P.A. 7,107,021.40 6,012,269.93
GROUPE SEB MOULINEX 1,206,546.65 3,082,576.38
GROUPE SEB THAILAND 417,891.72 111,031.93
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GROUPE SEB SINGAPORE 1,147,747.82
SEB INTERNATIONAL SERVICE S.A.S. 243,137.68 10,454.54
ETHERA 4,345.21 156,257.68
GS INNOVATION CENTER CO., LTD. 85,394.66 282,079.64
Supor Group Co., Ltd. 462,017.63 3,621,694.75
SEB ASIA LTD. 367,774.83
WMF (HE SHAN) MANUFACTURING COMPANY LIMITED 241,921.45
Total 32,649,328.58 55,433,914.73
Contract
Supor Group Co., Ltd. 104,203.43 405,442.77
liabilities:
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. 407.08 305.31
Total 104,610.51 405,748.08
Other payables SEB S.A. 7,228,621.42 6,839,932.07
Total 7,228,621.42 6,839,932.07
Lease
Supor Group Co., Ltd. 41,779,159.50 43,864,152.61
obligation:
Total 41,779,159.50 43,864,152.61
XIII. Share-based Payment
1. Overall information
Applicable □Not-applicable
Unit: RMB
Total amount of equity instruments granted in the current period of the company 1,209,500.00
Total amount of equity instruments exercised in the current period of the company 0.00
Total amount of equity instruments expired in the current period of the company 24,000.00
The range of exercise price of stock options issued by the company at the end of the 2021 Equity Incentive Plan: RMB 1/share,
period and the remaining term of the contract 3.58 years
Other remarks
According to the Proposal on the 2021 Restricted Stock Incentive Plan (Draft) of Zhejiang Supor Co., Ltd. and its abstract
(hereinafter referred to as the 2021 Incentive Plan) reviewed and approved at the third interim shareholders' meeting in 2021 held on
December 30, 2021, the company plans to grant 1,209,500 restricted stocks to the incentive target and completed the repurchase of
1,209,500 shares of the share capital company from December 15, 2021 to December 21, 2021. The Company granted 1,209,500 shares
on January 6, 2022 at a price of RMB 1/share.
The 2021 annual incentive plan is valid for 4 years from the first grant date. The incentive plan has a lock-up period of 24 months
and an unlock period of 36 months, which can be unlocked in two phases. If the unlock conditions are met, the incentive object can
apply for unlocking twice, and then apply for unlocking 50% and 50% of the total restricted stocks granted after 24 months and 36
months from the grant registration date respectively. As of June 30, 2022, the remaining term of the above incentive plan is 3.58 years.
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Since some incentive objects resigned from the Company, totally 24,000 shares of restricted stock that had been granted to
resigned incentive objects were repurchased at the price of RMB1 per share in accordance with the Proposal on Repurchasing and
Canceling a Part of Restricted Stock deliberated and adopted in the 12th Session of the Seventh Board of Directors.
2. Equity-settled share-based payment
Applicable □Not-applicable
Unit: RMB
Determination method for fair value of equity instruments on Grant
According to the market price on the Grant Date.
Date
Based on the corresponding equity instruments of the on-the-job
incentive targets, the Company shall determine the performance of
Basis for determining the number of exercisable equity instruments
the Company and the forecast of future performance of the
Company
Reasons for significant difference between the estimates in current
None
period and prior period
The accumulated amount of equity-settled share-based payment
21,404,889.90
included in the capital reserve
Total cost incurred due to equity-settled share-based payment
21,404,889.90
transactions
Other remarks
Note 1. According to the 2021 annual incentive plan reviewed and approved by the third interim shareholders' meeting in 2021 held on
December 30, 2021, the Company used its own funds to buy back 1,209,500 shares of the Company for the incentive plan, with the
grant price of RMB 1.00 per share, which decreased the treasury share of RMB 1,209,500 yuan, and included in the capital reserve-
capital premium of RMB 74,950,397.25.
2. The capital reserve affected by the equity incentive plan in 2021 is RMB 0 yuan at the beginning of the year, RMB 21,404,889.90
this year, and RMB 21,404,889.90 at the end of the year.
XIV. Commitments and Contingencies
1. Contingencies
(1) Significant contingencies at the date of balance sheet
Contingent liabilities arising from pending litigation and arbitration and their financial impact
In 2016, the private patent holder filed a lawsuit against its subsidiary Shaoxing Supor for infringing its patent. In 2020, the relevant
patent right held by the plaintiff was declared invalid by the Patent Reexamination Board of the State Intellectual Property Office, and
the litigation risk of Supor decreased. At present, the above-mentioned case is still inconclusive. Considering the principle of
conservatism, Supor still retained the estimated liabilities of RMB 5.15 million on June 30, 2022 (December 31, 2021: RMB 5.15
million). In 2020, an export customer filed a legal lawsuit against Shaoxing Life Electric Appliance Company, a subsidiary company,
on the grounds of a user dispute. At present, the above-mentioned case is still inconclusive. Considering the principle of conservatism,
Supor still retained the estimated liabilities of RMB 4 million on June 30, 2022 (December 31, 2021: RMB 4 million). In 2021, another
export customer filed a claim for product quality problems against its subsidiary Shaoxing Supor on the grounds of user disputes. At
present, the above case is still inconclusive. Considering the principle of conservatism, Supor still retained the estimated liabilities of
RMB 2 million on June 30, 2022 (December 31, 2021: RMB 2 million).
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Contingent liabilities formed by financial guarantee and its financial impact
Supor signed a tripartite acceptance agreement with distributors and banks, and Supor provided financing guarantee for banks to
issue bank acceptance bills to distributors. In the case of endorsement and transfer of the acceptance bill obtained by Supor, if the
distributor fails to repay the difference between the security and the amount of the acceptance bill after the maturity of the acceptance
bill, the risk exposure that Supor will bear is the partial difference loss that the bank has not recovered from the distributor. As of June
30, 2022, Supor will bear the risk exposure of RMB 204,466,653.39, and the Company will make provision for the estimated liabilities
of financial guarantee contract for this risk exposure, totaling RMB 1,022,333.27.
(2) If the Company has no important contingencies that need to be disclosed, it shall also be explained
The Company has no important contingencies to be disclosed.
XV. Events after the Balance Sheet Date
1. Liquidation of subsidiaries
On January 24, 2022, Shanghai SEB was put into liquidation with a special liquidation team established. Shanghai SEB has stopped
its production in July 2021 and moved its production line and supporting facilities as a whole to the Group's production base in Shaoxing
and Hangzhou in Zhejiang. The liquidation team filed at Minhang Market Supervision and Administration Bureau on February 16,
2022, and the liquidation began after an announcement published on the newspapers to the creditors on February 24, 2022. Shanghai
SEB is in the process of liquidation by the date of the approval of this financial statement.
XVI. Other Important Matters
1. Branch information
(1) Determination basis and accounting policy of reportable segment
Supor establishes operating segment according to internal organizational structure, management requirement and internal report
system; determines reportable segment and disclose segment information based on operating segment.
Operating Segment refers to the Supor's organization meeting following conditions: (1) The organization can yield income and
cost in daily activity; (2) The 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 information, 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 merged into an operating segment.
When preparing segment reports, inter-segment transaction income is measured based on the actual transaction price. The
accounting policies adopted in the preparation of segment reports are consistent with those adopted in the preparation of Supor's
financial statements.
Supor's main products are cooking utensils, small domestic appliance, etc. Supor determines the reportable segment based on
product and regional segment, and the assets and liabilities shared by each product segment cannot be clearly distinguished.
(2) Financial information of reportable segments
Unit: RMB
① Product segment
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Inter-segment
Item Cooking utensils Electrical product Others Total
offsetting
Revenue from main business 3,089,629,748.93 7,182,486,418.81 87,534,215.61 103,210,951.78 10,256,439,431.57
Cost of main business 2,266,959,061.22 5,383,268,896.34 75,896,893.21 103,411,463.58 7,622,713,387.19
② Geographic segment
Supor's information on foreign transaction revenue and non-current assets (excluding financial assets and deferred income tax
assets, the same below) listed by different regions is shown in the table below. Foreign transaction revenue is divided according to the
location of customers who receive services or purchase products. Non-current assets are classified according to the physical location
of assets (for fixed assets and construction in progress), the location where related businesses are assigned (for intangible assets) or the
location of joint venture and associated enterprise.
Item Domestic Foreign Inter-segment offsetting Total
Revenue from main business 7,419,891,762.28 2,846,696,169.69 10,148,500.40 10,256,439,431.57
Cost of main business 5,168,929,688.89 2,464,080,719.08 10,297,020.78 7,622,713,387.19
③ Major Customers
Among Supor's customers, there is one (2021: 1) whose revenue from a single customer accounts for 10% or more of Supor's
total revenue, which is a related party SEB ASIA LTD, accounting for about 25.21% of Supor's total revenue (2021: 30.80%).
XVII. Notes to items of parent company financial statements
1. Accounts receivable
(1) Details on categories
Unit: RMB
Closing balance Opening balance
Provision for bad Provision for bad
Categories Book balance Book balance
debts Book debts Book
Provision value Provision value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable for 608,569,5 18,738,9 589,830, 770,159,0 27,825,21 742,333
100.00% 3.08% 100.00% 3.61%
provision for bad 77.91 69.27 608.64 19.26 7.23 ,802.03
debts by portfolio
Including:
Portfolio 1: age 468,277,5 18,617,5 449,659, 695,510,0 27,765,21 667,744
76.94% 3.98% 90.31% 3.99%
portfolio 21.50 25.51 995.99 17.57 8.24 ,799.33
Portfolio 2: low- 121,443,7 121,443. 121,322, 59,998,99 59,938,
19.96% 0.10% 7.79% 59,998.99 0.10%
risk portfolio 61.99 76 318.23 1.48 992.49
Portfolio 3: merged
18,848,29 18,848,2 14,650,01 14,650,
related parties 3.10% 0.00% 1.90%
4.42 94.42 0.21 010.21
portfolio
608,569,5 18,738,9 589,830, 770,159,0 27,825,21 742,333
Total 100.00% 3.08% 100.00% 3.61%
77.91 69.27 608.64 19.26 7.23 ,802.03
Provision for bad debts by portfolio: Portfolio 1: age portfolio
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year 468,277,521.50 18,617,525.51 3.98%
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Total 468,277,521.50 18,617,525.51
If provision for bad debts for accounts receivable is made based on the general model of expected credit losses, please disclose the
relevant information about the provision for bad debts with reference to the disclosure of other receivables:
□Applicable Not-applicable
Disclosure by ages
Unit: RMB
Ages Closing balance
Within 1 year (including 1 year) 608,569,577.91
Total 608,569,577.91
(2) Provision for bad debts accrued, collected or reversed in the current period
Provision for bad debts in current period:
Unit: RMB
Amount of changes in the current period
Categories Opening balance Closing balance
Collected or Canceled after
Provision Others
reversed verification
Provision for bad
debts for accounts 27,825,217.23 -9,086,247.96 18,738,969.27
receivable
Total 27,825,217.23 -9,086,247.96 18,738,969.27
(3) Accounts receivable with top 5 closing balances collected by debtors
Unit: RMB
Closing balance of accounts Proportion in the total closing Closing balance of
Name of organization
receivable balance of accounts receivable provision for bad debts
SEB ASIA LTD. 462,358,248.67 75.97% 18,494,329.95
Customer C 97,282,171.59 15.99% 97,282.17
Wuhan Cookware 9,040,741.34 1.49%
Customer I 8,828,869.25 1.45% 8,828.87
Customer J 5,296,930.71 0.87% 5,296.93
Total 582,806,961.56 95.77%
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 879,855,389.11 1,845,295,351.20
Total 879,855,389.11 1,845,295,351.20
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Opening book balance
Fund pool 876,567,505.24 1,844,438,348.07
Temporary payment receivable 1,111,787.30 1,439,315.12
Personal deposit 3,252,497.53 356,338.04
Total 880,931,790.07 1,846,234,001.23
2) Provision for bad debts
Unit: RMB
Phase I Phase II Phase III
Predicted credit loss in the
Provision for bad debts Predicted credit loss in the Total
Predicted credit loss in whole period of existence
whole period of existence
future 12 months (without credit
(with credit impairment)
impairment)
Amount on January 1, 2022 938,650.03 938,650.03
Balance on January 1, 2022 in
the current period
Provision for bad debts during
137,750.93 137,750.93
the reporting period
Balance on June 30, 2022 1,076,400.96 1,076,400.96
Changes in book balance of loss provision due to significant changes in the current period
□Applicable Not-applicable
Disclosure by ages
Unit: RMB
Ages Closing balance
Within 1 year (including 1 year) 879,930,540.89
1-2 years 100,000.00
Over 3 years 901,249.18
4-5 years 5,000.00
Over 5 years 896,249.18
Total 880,931,790.07
3) Provision for bad debts accrued, collected or reversed in the current period
Provision for bad debts in current period:
Unit: RMB
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Amount of changes in the current period
Categories Opening balance Closing balance
Collected or Canceled after
Provision Others
reversed verification
Provision for bad debts
938,650.03 137,750.93 1,076,400.96
of other receivables
Total 938,650.03 137,750.93 1,076,400.96
4) Other receivables with top 5 closing balances collected by debtors
Unit: RMB
Proportion in the total Closing balance of
Nature of
Name of organization Closing balance Ages closing balance of other provision for bad
receivables
receivables debts
Wuhan Cookware Fund pool 340,218,591.34 Within 1 year 38.62%
Zhejiang Supor Electrical Fund pool 301,528,747.16 Within 1 year 34.23%
Shanghai WMF Fund pool 89,000,000.00 Within 1 year 10.10%
Omegna Fund pool 67,721,070.08 Within 1 year 7.69%
Zhejiang WMF Fund pool 56,760,672.49 Within 1 year 6.44%
Total 855,229,081.07 97.08%
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
2,959,452,926.82 2,959,452,926.82 2,948,542,538.52 2,948,542,538.52
subsidiaries
Investments in
associates and 64,961,837.65 64,961,837.65 65,419,057.50 65,419,057.50
joint ventures
Total 3,024,414,764.47 3,024,414,764.47 3,013,961,596.02 3,013,961,596.02
(1) Investments in subsidiaries
Unit: RMB
Increase/decrease Closing
Opening balance Closing balance balance of
Invested unit Accrued
(Book value) Investment Investment (Book value) impairment
impairment Others
increased decreased provision
provision
Wuhan PC 240,428,244.41 240,428,244.41
P&R 20,804,297.92 20,804,297.92
Yuhuan Sales Company 2,990,149.81 2,990,149.81
Zhejiang Supor Electrical 770,267,854.79 2,698,838.94 772,966,693.73
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Shaoxing Supor 639,411,908.49 3,256,304.04 642,668,212.53
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 Cookware 598,253,566.39 1,822,822.38 600,076,388.77
SEADA 11,890,622.45 11,890,622.45
Shanghai WMF 50,000,000.00 176,973.06 50,176,973.06
Shanghai SEB/SSEAC 212,152,728.62 212,152,728.62
Zhejiang WMF 100,000,000.00 805,227.36 100,805,227.36
Supor LKA 100,000,000.00 247,762.26 100,247,762.26
Shaoxing Supor Housewares 50,000,000.00 1,902,460.26 51,902,460.26
Supor Water Heater 31,200,000.00 31,200,000.00
Total 2,948,542,538.52 10,910,388.30 2,959,452,926.82
(2) Investments in associates and joint ventures
Unit: RMB
Increase/decrease
Cash dividend/profit
Investment profit or
Adjustment in other
loss recognized by
Opening Closing Closing
comprehensive
equity method
declared for
Investing balance balance balance of
distribution
Changes Accrued
income
unit (book Investment Investment (book impairment
in other impairmen Others
value) increased decreased value) provision
equity t provision
I. Joint Venture
II. Associated Enterprise
Wuhan
-
Anzai 65,419,05 64,961,
457,219.8
Cookware 7.50 837.65
5
Co., Ltd.
-
65,419,05 64,961,
Subtotal 457,219.8
7.50 837.65
5
-
65,419,05 64,961,
Total 457,219.8
7.50 837.65
5
4. Operating income and operating cost
Unit: RMB
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
Amount incurred during this period Amount incurred during last period
Item
Revenue Cost Revenue Cost
Main business 1,100,175,925.03 1,008,919,142.74 1,275,291,505.47 1,086,178,831.77
Other business 18,296,531.96 16,109,933.67 78,596,848.63 74,045,444.45
Total 1,118,472,456.99 1,025,029,076.41 1,353,888,354.10 1,160,224,276.22
Information related to revenue:
Unit: RMB
Contract Classification Total
Commodit type
Including:
Cooking utensils and utensils 1,098,857,913.76
Other household electric appliances 19,614,543.23
Classified by business area
Including:
Domestic 55,518,735.18
Foreign 1,062,953,721.81
Classification by time of commodity transfer
Including:
Revenue recognized at a certain time point 1,118,472,456.99
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 signed contracts but
have not been fulfilled is RMB 2,398,065.17, of which RMB 2,398,065.17 is expected to be recognized in 2022.
5. Investment income
Unit: RMB
Amount incurred during this Amount incurred during
Item
period last period
Long-term equity investment income under the equity method -457,219.85 1,025,583.40
Investment income from disposal of transactional financial asset 1,534,044.99
Interest for term deposit 28,822,530.29 40,606,438.36
Investment income of debt investment during the holding period 3,552,197.12
Total 33,451,552.55 41,632,021.76
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
XVIII. Supplementary information
1. Breakdown of non-recurring profit or loss in the current period
Applicable □Not-applicable
Unit: RMB
Item Amount Notes
Losses and gains from disposal of non-current assets -312,542.28
Government subsidies included in the current profits and losses (except those that are closely
related to the Company's normal business operations, comply with national policies and 21,616,692.79
regulations and are continuously available according to certain standard quota or quantity)
Enterprise restructuring costs, such as resettling employees expenses, integration expenses, etc. -453,079.14
Except effective hedging business related to the Company's normal business operations, profits
and losses from fair value changes caused by the held transactional financial assets and
transactional financial liabilities, and investment income acquired from disposal of 10,065,488.38
transactional financial assets, transactional financial liabilities and available-for-sale financial
assets
Other non-operating incomes or expenditures except for the foregoing items 883,117.00
Minus: Influenced amount of income tax 8,065,234.95
Influenced amount on minority shareholders' equities -429.33
Total 23,734,871.13 --
Details of other profit and loss items complying with the definition of non-recurring profits or losses:
□Applicable Not-applicable
The Company does not have other specific circumstances of other profit and loss items complying with the definition of non-recurring
profits or losses in the Company.
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
Earnings per share
Return on weighted
Profit of the reporting period Basic earnings per Diluted earnings
average net assets
share per share
(RMB/share) (RMB/share)
Net profit attributable to shareholders of ordinary shares 12.31% 1.155 1.155
Net profit attributable to shareholders of ordinary shares after
11.99% 1.126 1.125
deducting non-recurring profit or loss
3. Accounting Data Discrepancies under domestic and foreign Accounting Standards
(1) Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□Applicable Not-applicable
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2022 Semiannual Report of Zhejiang Supor Co., Ltd.
(2) Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□Applicable Not-applicable
(3) The reason for the accounting data difference under domestic and foreign accounting standard shall be
explained. If the data audited by the foreign audit organization carries out the difference adjustment, the
name of the foreign organization shall be indicated.
None
Zhejiang Supor Co., Ltd.
Chairman: Thierry de LA TOUR D’ARTAISE
August 31, 2022
153
