2022 Annual Report of Zhejiang Supor Co., Ltd.
Zhejiang Supor Co., Ltd.
2022 Annual Report
March 2023
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2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND
DEFINITIONS
The Board of Directors and the Board of Supervisors of Zhejiang Supor Co., Ltd
(hereinafter referred to as the "Company") and all its directors, supervisors and senior
executives warrant that this annual report is true, accurate and complete, and does not
contain any fictitious statements, misleading information or significant omissions; all
directors, supervisors and senior executives of the Company undertake, separately and
jointly, all responsibilities in relation to the truth, accuracy and completeness hereof.
Mr. Thierry de LA TOUR D'ARTAISE, person in charge of the Company, and Mr.
Xu Bo, person in charge of accounting and person in charge of accounting department
(accountant in charge), hereby confirm that the financial statement enclosed in this
Annual Report is true, accurate and complete.
All directors have attended the Board Meeting in person.
It is of great uncertainty, for whether it can be realized or not depends on multiple
factors, including market change and effort of management team. Please be careful of
investment risks.
As for the risk factors confronted by the Company, see Part 11 "Prospects for
Future Development" of Section III "DISCUSSION AND ANALYSIS OF THE
MANAGEMENT" for details.
The profit distribution plan adopted at this Board Meeting specifies that: based on
805,116,907 shares, the Company distributes cash dividend of RMB 30.30 per 10 shares
(tax-inclusive) to all shareholders, issues 0 bonus share (tax-inclusive) and will not
convert capital reserves to capital.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Table of Contents
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND DEFINITIONS ......................................................................... 2
SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICATORS ...................................................................................... 6
SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEMENT ....................................................................................... 10
SECTION IV CORPORATION GOVERNANCE ............................................................................................................................... 27
SECTION V SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES ........................................................................................... 50
SECTION VI SIGNIFICANT EVENTS .............................................................................................................................................. 55
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS ............................................ 64
SECTION VIII INFORMATION ON PREFERRED SHARE ............................................................................................................. 71
SECTION IX BONDS .......................................................................................................................................................................... 72
SECTION X FINANCIAL STATEMENT ........................................................................................................................................... 73
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2022 Annual Report of Zhejiang Supor Co., Ltd.
CATALOG OF REFERENCE DOCUMENTS
I. 2022 Annual Report of the Company and Abstract with signature of legal representative;
II. Financial statements with signature of legal representative, person in charge of accounting and person in charge of accounting department
and seal of the Company;
III. Original of audit report with seal of accounting firm and signature of certified public accountants (CPA);
IV. Original of all documents and announcements published in newspapers designated by CSRC during the reporting period.
Reference documents above shall be prepared by Securities Department of the Company. Securities Department of the Company
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Definitions
Items to be Defined means Definitions
SZSE means Shenzhen Stock Exchange
CSRC means China Securities Regulatory Commission
CSDCC means Shenzhen Branch of China Securities Depository and Clearing Corporation Limited
The Company/this Company/the Group means Zhejiang Supor Co., Ltd.
SEB Internationale means SEB INTERNATIONALE S.A.S
SEB Group means SEB S.A.
Zhejiang Supor Electrical means Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd.
Shaoxing Supor means Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd.
Supor Vietnam means Supor (Vietnam) Co., Ltd.
Wuhan Recycling means Wuhan Supor Recycling Co., Ltd.
Wuhan Supor Cookware means Wuhan Supor Cookware Co., Ltd.
Wuhan Supor Pressure Cooker means Wuhan Supor Pressure Cooker Co., Ltd.
Omegna means Hangzhou Omegna Commercial Trade Co., Ltd.
Shanghai Marketing means Shanghai Supor Cookware Marketing Co., Ltd.
P&R Products means Zhejiang Supor Plastic & Rubber Co., Ltd.
Yuhuan Sales Company means Yuhuan Supor Cookware Sales Co., Ltd.
SEADA means SOUTH EAST ASIA DOMESTIC APPLIANCES PTE. LTD.
AFS means AFS VIETNAM MANAGEMENT CO.LTD.
Shanghai WMF means Shanghai WMF Enterprise Development Co., Ltd.
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 Household Products Co., Ltd.
Zhejiang Supor LKA means Zhejiang Supor Large Kitchen Appliance Co., Ltd.
Supor Water Heater means Zhejiang Supor Water Heater Co., Ltd.
GSIM or Indonesian Company means PT Groupe SEB Indonesia MSD
Hainan Supor E-commerce Company means Hainan Supor E-Commerce Co., Ltd.
Hainan Tefal Trading Company means Hainan Tefal Trading Co., Ltd.
2021 Equity Incentive Plan means 2021 Restricted Stock Incentive Plan (Draft)
2022 Equity Incentive Plan means 2022 Restricted Stock Incentive Plan (Draft)
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2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICATORS
I. Company Information
Short Form of the Stock: Supor Stock Code 002032
Short Form of the Original Stock (if any) None
Stock Exchange for Stock Listing Shenzhen Stock Exchange
Chinese Name of the Company Zhejiang Supor Co., Ltd.
Short Form of Chinese Name of the Company Supor
English Name of the Company (if any) ZHEJIANG SUPOR CO., LTD.
Short Form of English Name of the Company
SUPOR
(if any)
Legal Representative Thierry de LA TOUR D'ARTAISE
Registration Place Damaiyu Economic Development Zone, Yuhuan, Zhejiang
Postal Code 317604
Historical Change Records of the Company's
None
Registered Address
15F of Supor Building, No.1772 Jianghui Road, New & High Tech Development Zone, Hangzhou,
Office Address
China
Postal Code 310051
Website www.supor.com.cn
Email 002032@supor.com
II. Contact Person and Contact Information
Board Secretary Representative of Securities Affairs
Name Ye Jide Fang Lin
Securities Department at 23F of Supor Building, No.1772 Securities Department at 23F of Supor Building, No.1772
Address Jianghui Road, New & High Tech Development Zone, Jianghui Road, New & High Tech Development Zone,
Hangzhou, China Hangzhou, China
Tel. 0571-86858778 0571-86858778
Fax 0571-86858678 0571-86858678
Email yjd@supor.com flin@supor.com
III. Place for Information Disclosure and Archiving
Securities exchange websites where the Company discloses
Securities Times, Securities Daily and China Securities Journal
the annual report
Names and websites of medias where the Company discloses
www.cninfo.com.cn
the annual report
Place for archiving of the Company's annual report: Securities Department of the Company
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2022 Annual Report of Zhejiang Supor Co., Ltd.
IV. Changes of Registration
Unified social credit code 913300007046976861
Change of main business since listing of the Company (if any) No change during the reporting period
Change of controlling shareholders (if any) No change during the reporting period
V. Other Relevant Information
Certified Public Accountants engaged by the Company
Name of the Certified Public Accountants KPMG Huazhen LLP (Special General Partnership)
8F, East 2 Office Building, Dongfang Square, No.1 East Chang'an Avenue,
Office Address of the Certified Public Accountants:
Dongcheng District, Beijing City
Name of the Signatory Accountants Huang Feng, Jin Yang
Sponsor institution engaged by the Company for performing continuous supervision duties during the reporting period
□ Applicable Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties during the reporting period
□ Applicable Not applicable
VI. Major Accounting Data and Financial Indicators
Does the company need to retroactively adjust or restate previous year's accounting data?
□ Yes No
2022 2021 Increase/decrease 2020
Operating income (RMB) 20,170,527,516.66 21,585,331,407.47 -6.55% 18,596,944,289.02
Net profit attributable to shareholders of listed company
2,067,659,526.97 1,943,943,608.94 6.36% 1,846,221,538.10
(RMB)
Net profit attributable to shareholders of listed company
1,888,197,965.28 1,858,036,556.80 1.62% 1,595,178,564.27
with non-recurring profit or loss deducted (RMB)
Net cash flows from operating activities (RMB) 3,159,955,245.84 2,049,881,568.69 54.15% 2,076,592,774.00
Basic earnings per share (RMB/share) 2.565 2.400 6.88% 2.264
Diluted earnings per share (RMB/share) 2.564 2.395 7.06% 2.261
Increased by 1.08
Weighted average return on net assets 27.89% 26.81% 26.97%
percentage points
End of 2022 End of 2021 Increase/decrease End of 2020
Total assets (RMB) 12,952,655,903.47 13,899,456,422.16 -6.81% 12,292,270,384.71
Net asset attributable to shareholders of listed company
7,036,084,863.54 7,622,639,752.86 -7.69% 7,200,939,908.92
(RMB)
The Company's net profit before or after non-recurring profit and loss are deducted for the last three fiscal years, whichever is lower, is negative,
and the audit report for the latest year indicates uncertainty about its continuing operation ability
□ Yes No
Net profit before or after non-recurring profit and loss are deducted, whichever is lower, is negative
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2022 Annual Report of Zhejiang Supor Co., Ltd.
□ Yes No
VII. Financial Data Difference on Principle of Domestic and Oversea Accounting
1. Net profit and net assets discrepancies in financial statements disclosed separately under International Accounting
Standards and Chinese Accounting Standards
□ Applicable Not applicable
No net profit and net assets discrepancies in financial statements disclosed separately under International Accounting Standards and Chinese
Accounting Standards existed during the reporting period.
2. Net profit and net assets discrepancies in financial statements disclosed separately under Overseas Accounting
Standards and Chinese Accounting Standards
□ Applicable Not applicable
No net profit and net assets discrepancies in financial statements disclosed separately under Overseas Accounting Standards and Chinese
Accounting Standards existed during the reporting period.
VIII. Quarter-based Major Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 5,611,558,380.61 4,712,421,364.21 4,656,794,210.81 5,189,753,561.03
Net profit attributable to shareholders of listed company 538,175,628.78 394,673,535.25 376,051,074.83 758,759,288.11
Net profit attributable to shareholders of listed company with
non-recurring profit or loss deducted 527,260,626.62 381,853,666.28 363,133,619.23 615,950,053.15
Net cash flows from operating activities 364,623,903.59 944,220,962.74 716,190,474.81 1,134,919,904.70
Any difference between financial indicators or the total and relevant financial indicators disclosed in quarter-based report or semiannual report
□ Yes No
IX. Non-recurring Profit or Loss Items and Amount
Applicable □ Not applicable
Unit: RMB
Item Amount of 2022 Amount of 2021 Amount of 2020 Notes
Profit and loss on disposal of non-current assets (including the write-off
of asset impairment provision) -1,189,107.57 -5,168,056.19 -1,663,881.06
Government subsidies included into the current profits and losses
(except those that are closely related to the Company's normal business
operations, comply with national policies and regulations and 199,599,828.51 181,083,262.46 202,566,619.42
continuously available according to certain standard quota or quantity)
Capital occupation fee charged to non-financial enterprises included in
current profits and losses 1,849,173.62
Enterprise restructuring costs, such as expenses for employee placement -527,780.73 -59,398,185.22
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2022 Annual Report of Zhejiang Supor Co., Ltd.
and integration costs
Except the effective hedging business related to the normal operation of
the Company, profits and losses from fair value changes caused by the
held transactional finance assets and transactional financial liabilities,
and investment income acquired from disposal of transactional financial 24,264,345.88 5,385,851.68 88,892,019.40
assets, transactional financial liabilities and available-for-sale financial
assets
Other non-operating incomes or expenditures except for the foregoing
9,796,376.97 6,654,792.26 5,607,120.28
items
Other profit or loss conforming to the definition of non-recurring profit
9,097,243.99
or loss
Minus: influenced amount of income tax 52,414,885.25 43,945,276.71 53,320,043.15
Influenced amount of minority shareholders' equities (after tax) 67,216.12 554,509.76 136,105.05
Total 179,461,561.69 85,907,052.14 251,042,973.83 --
Other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses:
□ Applicable Not applicable
The Company does not have other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits
or losses.
Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of the Information of
Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□ Applicable Not applicable
The Company does not have the description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on
Disclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEMENT
I. Industrial Situation of the Company in the Reporting Period
Owing to impacts of the geopolitical, inflation and other factors, the year of 2022 witnessed that the global imbalance between supply and
demand intensified, energy prices rose, the growth rate of goods trade slowed down, and the global economic recovery process slowed down.
Unfavorable macroeconomic factors have aggravated global consumers' worries about their purchasing power, and decreased their expenditure on
non-essential services and entertainment. The global cookware and small domestic appliance market has confronted with huge challenges. As
domestic economic activities fluctuate, the offline consumption was affected, with the total social retail sales of consumer goods decreasing by
0.2% in the whole year, which reflects a relatively weak domestic demand. However, as a series of measures to stabilize the economy and promote
the consumption took effect, the consumer market gradually revived. On the whole, China's economy will comprehensively improve in 2023,
which will effectively raise residents' purchasing power and willingness. With the general trend of consumption upgrade, the continuous innovation
and consumer insight research and the precise matching with the segment populations' high-end, individualized, fashion-orientated and
intellectualized demand will become the major impetus that drives the growth of consumption in the industry.
The Chinese consumer market of open fire cookware is kept being affected by the reduction of offline passenger flow and the poor logistics,
which causes both the online and offline channels of the cookware industry to face heavy pressure. According to the data of 30 major cities in
China monitored by GFK, the offline retail sales of the eight major product categories of open fire cookware (wok, pressure cooker, frying pan,
stockpot, milk pot, steamer, cookware set, and ceramic slow cooker) declined by a percentage of two digits in 2022 on a year-on-year basis.
According to the monitoring data of AVC, the total market shares of the eleven major product categories of Supor open fire cookware (wok,
pressure cooker, frying pan, milk pot, stockpot, kettle, casserole, hot pot, steamer, cookware set and enamel pot) on main e-commerce platforms
in 2022 declined by 1.6% year-on-year. However, in terms of the performance of different categories, the sales of rigid-demand frying pans and
pressure cookers is well. The online retail sales of enamel pots characterized by attractive appearance and popular among young people has
increased rapidly. However, the trend of consumption upgrade in the open fire cookware market remains unchanged, and healthy materials such
as 316L stainless steel and titanium are favored by consumers.
In the industry of small domestic appliances, 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 problem of segment product
categories, the consumption demand for small domestic appliances is continuously challenged. According to the traditional channel monitoring
data of AVC, the retail sales of thirteen categories of small domestic appliances (electric rice cooker, induction hob, electric pressure cooker,
soymilk maker, high-speed blender, blender, juicer, electric kettle, baked machine, health kettle, electric steamer, desktop single-function oven,
and air fryer) was RMB 52.03 billion, a year-on-year decrease of 6.7%. From the market performance of each category, consumers prefer products
with strong practicability, multifunction, easy storage and space saving, such as multifunctional electric steamer and air fryer. According to the
online traditional channel monitoring data of AVC, the retail sales of air fryers reached RMB 6.04 billion in 2022, a year-on-year increase of
46.9%; and the retail sales of electric steamers reached RMB 1.16 billion, a year-on-year increase of 54.3%. The oil-free air fryer market continues
the rapid development in 2021, becoming the 2nd largest category after electric rice cookers.
II. Main Business during the Reporting Period
As China's famous cookware R&D and manufacturing company, Zhejiang Supor Co., Ltd (hereinafter referred to as "the Company") 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 6 R&D and manufacture bases located in Yuhuan City, Hangzhou City, Shaoxing
City (Yuecheng District and Keqiao District) in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam.
Supor's main businesses include open fire cookware and kitchen utensil, small domestic appliances, large kitchen appliances and H&PC
appliances.
(1) Open fire cookware and kitchen utensils mainly include wok, pressure cooker, frying pan, sauce pan, steamer, ceramic slow cooker,
kettle, knife, spatula, thermal pot, thermos & flask, kitchen gadgets, crisper, etc.;
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2022 Annual Report of Zhejiang Supor Co., Ltd.
(2) The small domestic appliances mainly include electric rice cooker, electric pressure cooker, induction hob, soymilk maker, electric kettle,
juicer, slow cooker, electric steamer, electric hotpot, food processor, baked machine, air fryer, etc.;
(3) The large kitchen appliances mainly include range hood, gas stove, disinfection cabinet, water purifier, embedded steaming oven, water
heater, integrated stove, etc.;
(4) The H&PC appliances mainly include air purifier, garment steamers, vacuum cleaner, floor washer and electric iron.
The Company's cookware and electrical products have been exported to more than 50 countries and regions such as Japan, European and
American countries mainly through SEB Group.
III. Core competitiveness analysis
(I) Superior product innovation capacity
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 continues to strength innovation, launched a series
of hot-selling and innovative products, such as 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 first IH electric rice cooker in
2011, pioneered the spherical liner in 2013, ceremoniously launched the industrial first steam IH electric rice cooker, launched the "Core Iron II"
wok in 2020, the new-generation anti-corrosion and anti-perforation ti-authentic stainless steel wok and the oil-concentrated frying pan in 2021,
the high-end multi-cooker “Xiao C chef” in 2021, and the industrial first uncoated wok with titanium in 2022.
(II) Steady distributor network
Given years of development, Supor has stable offline 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.
In terms of e-commerce channels, while the Company was deeply engaged in traditional e-commerce platforms, it has also stated to engage
in emerging e-commerce channels, such as TikTok, Kuaishou and Xiaohongshu. The Company has built a complete matrix of stores based on
different categories, channels, and customer groups. Through hierarchical management of the stores, a good internet channel store ecosystem is
formed. On the other hand, the Company continues to promote the integration of online and offline channels, forming a closed loop of new retail
shopping experience such as content planting, offline experience, online ordering and door-to-door service, which further narrows the distance
between the brand and consumers.
(III) Strong R&D and manufacturing capacity
Supor has built up six R&D production bases, respectively in Yuhuan City, Hangzhou City, Shaoxing City (Yuecheng and Keqiao) in Zhejiang
Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam. In particular, the annual production scale of Wuhan Base and Shaoxing
Base ranked the top in the industry. 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. The Company has set up an innovation center to carry out innovation work as a whole and stayed close
exchanges and cooperation with leading laboratories in the industry and first-class universities in China to promote the development and test of
new materials, which has achieved phased progress.
(IV) Synergistic effect of integration with SEB
Since 2006, the Company has started to establish strategic cooperation relationship with SEB Group which owns a long history of more than
160 years with leading market shares of cookware and small domestic appliances worldwide. The powerful cooperation between Supor and SEB
Group has brought stable export orders to the Company, and increased its overall business size and manufacturing capacity. Meanwhile, the
cooperation in aspects of R&D and management has continuously enhanced the core competitiveness of the Company over the years.
(V) 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 Group, 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
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2022 Annual Report of Zhejiang Supor Co., Ltd.
first class nationwide. It also explores new varieties actively such as large kitchen appliances and kitchen utensils. The Company has formed its
strong competition advantages due to its layout of multiple brands and varieties in kitchen field.
IV. Main business analysis
During the reporting period, the Company achieved an operating income of RMB 20,170,527,516.66, a year-on-year decrease of 6.55%,
mainly because the domestic sales business benefited from the successful transformation toward the online channel strategy, the product sales
structure continued to be optimized, and the operating income increased steadily compared with the same period before. SEB Group, as the main
customer of export business, has a high level of inventory. In order to actively manage and control its inventory level of local channels, its orders
to the Company declined to a certain extent this year. The net profit attributable to shareholders of listed company was RMB 2,067,659,526.97, a
year-on-year increase of 6.36%; and the earnings per share were RMB 2.565, a year-on-year increase of 6.88%. Among them, the realized revenue
from the main business of cookware was RMB 6,121,737,273.97, a year-on-year decrease of 8.66%; the realized revenue from the main business
of electric appliances was RMB 13,803,483,799.48, a year-on-year decrease of 5.72%; the realized revenue from the main business of domestic
sales was RMB 14,796,684,166.64, a year-on-year increase of 5.07%; and the realized revenue from the main business of foreign trade was RMB
5,150,624,825.41, a year-on-year decrease of 29.34%.
1. Overview
(I) Domestic sales during the reporting period
(1) Product strategy
During the reporting period, Supor continued the "consumer-centric" strategy guiding its innovation and development of new products, and
deeply explored the needs of segmented users under different scenarios by means of internet data, so as to constant provide smart and ingenious
product solutions that meet diversified consumer needs and offer intimate, comprehensive consumer experiences.
In the business of open fire cookware, Supor has continuously explored the consumer demand on the use of cookware and kept accelerating
the expansion of products with core competitiveness. In 2022, titanium uncoated non-stick woks were deeply favored by consumers. On the
premise that there is no non-stick coating on the surface of the wok, good non-stick performance was achieved with professional technology,
creating a new healthy cooking experience without coating and sticking. In terms of frying pan category, Supor further optimized "patented oil-
gathering bottom" technology. The sales volume of TSP Oil-concentrating bottom frypan exceeded RMB 100 million in 2022. According to the
market share data of cookware for the 30 major cities in China as monitored by GFK, the total offline market shares of the eight major product
categories of Supor open fire cookware (wok, pressure cooker, frying pan, stockpot, milk pot, steamer, cookware set, and ceramic slow cooker)
reached 48.8% in 2022, continuing to consolidate the leading advantages as the top brand in the industry. According to the network-wide data of
AVC, the total market shares of the eleven major product categories of Supor open fire cookware (wok, pressure cooker, frying pan, milk pot,
stockpot, kettle, casserole, hot pot, steamer, cookware set and enamel pot) on main e-commerce platforms reached 23.1% in 2022, which is four
times to that of the second brand.
In terms of drinkware, Supor focuses on the coffee cup series products based on the preference of young consumers through insight into the
market demand trend of cups and pots. The dual-drinking thermal coffee cup, which was launched by the Company in 2022, is characterized by
stylish design, differentiated healthy materials and excellent cup body design. Once launched, it was sold very well, ranking first in the category
of thermal coffee cups for several consecutive months.
In the category of kitchen utensils, products are researched and developed by continuously exploring the backwards complained by
consumers and usage scenarios of products. The Company launched a series of innovative products in 2022, such as antibacterial knives and
antibacterial double-sided cutting boards, to meet the functional needs of consumers for disinfection and sterilization, etc. in daily life.
In the business of small domestic appliances, Supor adheres to the differentiated product innovation strategy at all times, and continuously
rolls out innovative and intelligent products which provide creative functions for healthy and nutritious cooking. In the category of electric rice
cookers, Supor launched a small-capacity far-infrared IH rice cookers special for small-size families, further consolidating the advantages of far-
infrared products. Supor upgraded the detachable and washable technology of air fryers and the differentiated design of detachable and washable
glass lids to facilitate cleaning and avoid oil pollution. Supor introduced the first stirring health pot in the industry, which can make ingredients
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2022 Annual Report of Zhejiang Supor Co., Ltd.
well cooked through stirring to better meet the healthy needs of consumers. In addition, Supor closely follows the development of science and
technology, and launches a brand-new form of "AIoT Fast Electric Cookers", combining science and technology with cooking, and with "NFC
Touch", human-computer interaction can be achieved quickly. The sales of “Little C” is still well, which won the first place in the category of
"Double Eleven JD.COM POP Cooking Robot". According to the traditional channel monitoring data of AVC, the online total market share of the
thirteen major product categories of Supor's small domestic appliances (electric rice cooker, induction hob, electric pressure cooker, soymilk maker,
high-speed blender, blender, juicer, electric kettle, baked machine, health kettle, electric steamer, desktop single-function oven, and air fryer)
reached 21.6% in 2022, a year-on-year increase of 1.1 percentage points and ranking first in the industry; and the total offline market share of the
above categories of Supor reached 33.0%, a year-on-year increase of 3.9 percentage points and ranking second in the industry.
Meanwhile, Supor persistently facilitates the product category development of H&PC appliances, and launched new floor washer M1. The
"keeping side" cleaning technology was applied and electrolyzed water can be used to clean and sterilize, easily eliminating hidden bacteria, and
protecting the health of the family environment. In terms of the garment steamer category, Supor continues to keep the leading position in the
industry. According to the monitoring data of AVC, the total online market share of Supor's clothes steamer category has reached 13.7%, ranking
second in the industry.
In the business of large kitchen appliances, Supor continues to enhance the brand building. The Company launched a series of differentiated
products with high cost performance, such as "7" extractor hood, three-eye gas stove, far-infrared steaming and baking integrated stove, and
independent steaming and baking integrated stove. Supor's annual stove line listing remanined the No.1 in the industry, and the overall brand line
listing accounted for the top five in the industry in 2022.
(2) Channel strategy
With the accelerated integration of online and offline markets, Supor remained "consumer-centric" and kept optimizing its layout of channels
based on the changes in consumers' purchase path, thereby meeting the needs of various consumers through a multi-channel and multi-mode layout.
The Company insisted on winning consumers' trust with high-quality products, and winning distributors' and retailers' support with excellent
services.
In 2022, Supor speeded up the channel reform, and the marketing efficiency further improved as a result. During the reporting period, the
Company continued to strengthen the construction of online channels, with the e-commerce business maintaining rapid growth, whose share in
Supor's domestic sales continued to increase. The Company enhances the construction of the e-commerce "stock-taking" model, enables the unified
warehousing and allocation for both distributor commodities and self-operating commodities, improves the channel capital turnover efficiency,
and effectively relieves the financial pressure of the distributors.
During the reporting period, the Company has been continuously implementing the strategy of promoting new products and selling high-
value products, in a bid to increase the sales proportion of high added-value and high margin products through the innovation of differentiated
products and marketing measures, and has been continuously improving the online profitability. During the grand promotion events of "618" and
"Double Eleven" in 2022, many of Supor's products ranked first in the sales of the corresponding categories, along with the significant increase in
the profitability of varied product categories.
On emerging social e-commerce platforms such as TikTok and Kuaishou, Supor positively explores growth points of new channels, acts to
embrace the distribution rules variation of platform flows, and establishes favorable strategic cooperation with the platforms and top live-streamers.
In 2022, Supor took the first-mover advantage on the major social platforms of TikTok and Kuaishou, etc., with market shares of major product
categories ranking first.
In terms of offline channels, due to the influence of industry decline, the traditional channels of primary and secondary markets are facing
great challenges in the business operating environment. Supor and distributors are working together to actively cope with the adverse situation so
as to enhance the refinement operation of the terminals and facilitate the improvement in store sales effectiveness, thus the overall market position
remains solid. Meanwhile, Supor also has kept implementing its development strategy for third and fourth markets, and speeded up the
comprehensive cooperation with e-commerce platforms such as JD, Tmall and Suning in O2O channels in lower-tier market, where its advantages
in the differentiation of mid- to high-end products and stable agents can be leveraged for new growth points in markets in lower-tier cities.
(3) Brand building
In 2022, the Company upgraded its brand and updated its brand core value. On the basis of maintaining high-quality products and
technological innovation, the industrial design is regarded as one of the brand core values for the first time to better adapt to the ever-changing
13
2022 Annual Report of Zhejiang Supor Co., Ltd.
consumption trends. The industrial design team has been gradually strengthened, and Supor's industrial design language has been established
around various categories, aiming at comprehensively creating more competitive products in terms of "appearance". In marketing, the Company
accelerated the transition to digital marketing. Through the mode of cooperation with celebrities plus IP marketing, we invited sport stars such as
Su Bingtian and Zhang Jike to participate in Tmall Happy Day, JD "618" and other activities, in order to keep enhancing the brand awareness
among young people. As we expanded investment in TikTok, GMV in live streaming increased at a high speed, and multi-category sales took the
lead in the industry. At the same time, the brand awareness on TikTok continued to grow, achieving the "balance between brand awareness and
sales result" in marketing. The exploration of the new mode of "content marketing plus attracting traffic through advertising" achieved initial
results. New products were launched successfully, such as the titanium uncoated non-stick wok, multifunctional and quick electric skillet, and the
dual-drinking thermal coffee cup, which soon became hot selling products, and the close-loop marketing was achieved more efficiently.
(II) Export sales during the reporting period
In 2022, the overall oversea trade dropped after the peak in 2021. On the one hand, our main customer, SEB Groupe, was reducing their
higher than usual inventories during the year, and as such was limiting its orders to Supor. On the other hand, the foreign customer demand further
dropped because of high prices of bulk materials such as aluminum, stainless steel and copper and continuous appreciation of the exchange rate of
RMB against USD. In 2022, the overall revenue of foreign trade business decreased by 29.09% year-on-year.
2. Revenues and costs
(1) Structure of operating incomes
Unit: RMB
2022 2021
Increase/decrease
Percentage to total Percentage to total YoY (%)
Amount Amount
operating income operating income
Total operating income 20,170,527,516.66 100% 21,585,331,407.47 100% -6.55%
By industry
Cookware 6,121,737,273.97 30.35% 6,702,257,811.38 31.05% -8.66%
Electric appliances 13,803,483,799.48 68.43% 14,641,378,116.19 67.83% -5.72%
Others 245,306,443.21 1.22% 241,695,479.90 1.12% 1.49%
By products
Cooking appliances 8,506,984,442.90 42.18% 9,034,130,069.36 41.85% -5.84%
Food processor
3,086,500,276.55 15.30% 3,563,543,509.79 16.51% -13.39%
appliances
Cookware and utensils 6,121,737,273.97 30.35% 6,702,257,811.38 31.05% -8.66%
Other household electric
2,455,305,523.24 12.17% 2,285,400,016.94 10.59% 7.43%
appliances
By areas
Domestic sales 14,975,644,970.69 74.25% 14,259,688,624.49 66.06% 5.02%
Export sales 5,194,882,545.97 25.75% 7,325,642,782.98 33.94% -29.09%
By sales mode
Direct sales 2,327,273,967.60 11.54% 1,832,866,623.49 8.49% 26.97%
Distribution 12,652,370,630.22 62.73% 12,432,653,195.35 57.60% 1.77%
OEM 5,190,882,918.84 25.73% 7,319,811,588.63 33.91% -29.08%
Remarks: "Others" by industry, "Other domestic electric appliances" by product, and region-based and sales-based modes exceptionally include
other business incomes, the same below.
14
2022 Annual Report of Zhejiang Supor Co., Ltd.
(2) Industry, product, area or sales mode that accounts for more than 10% of the Company's operating income or
operating profit
Applicable □ Not applicable
Unit: RMB
Increase/decrease Increase/decrease Increase/decrease
Gross
Operating income Operating cost YoY (%) for YoY (%) for YoY (%) for gross
margin
operating income operating cost margin
By industry
Cookware 6,121,737,273.97 4,277,114,265.06 30.13% -8.66% -13.68% 4.06%
Electric appliances 13,803,483,799.48 10,486,986,687.23 24.03% -5.72% -8.56% 2.36%
By products
Cooking appliances 8,506,984,442.90 6,446,395,980.91 24.22% -5.84% -8.25% 1.99%
Food processor
3,086,500,276.55 2,477,448,255.92 19.73% -13.39% -14.96% 1.48%
appliances
Cookware and
6,121,737,273.97 4,277,114,265.06 30.13% -8.66% -13.68% 4.06%
utensils
Other household
2,455,305,523.24 1,768,370,338.68 27.98% 7.43% 2.40% 3.54%
electric appliances
By areas
Domestic sales 14,975,644,970.69 10,734,281,393.12 28.32% 5.02% 3.32% 1.18%
Export sales 5,194,882,545.97 4,235,047,447.45 18.48% -29.09% -32.04% 3.55%
By sales mode
Direct sales 2,327,273,967.60 1,327,826,878.46 42.94% 26.97% 23.05% 1.82%
Distribution 12,652,370,630.22 9,410,048,399.91 25.63% 1.77% 1.01% 0.56%
OEM 5,190,882,918.84 4,231,453,562.20 18.48% -29.08% -32.04% 3.55%
If the statistical caliber of the Company's operation business data is adjusted during the reporting period, the main business data for the latest year
after the statistical caliber is adjusted.
□ Applicable Not applicable
(3) Practical sales revenue greater than labor income
Yes □ No
Increase/decrease YoY
Industrial classification Item Unit 2022 2021
(%)
Sales volume pcs/set 71,416,579 87,207,431 -18.11%
Cookware Output pcs/set 38,865,026 54,282,300 -28.40%
Stock pcs/set 10,549,133 13,251,243 -20.39%
Sales volume pcs/set 82,690,074 96,246,268 -14.08%
Electrical products Output pcs/set 51,085,806 68,684,534 -25.62%
Stock pcs/set 10,182,368 13,030,358 -21.86%
Sales volume pcs/set 154,106,653 183,453,699 -16.00%
Total Output pcs/set 89,950,832 122,966,834 -26.85%
Stock pcs/set 20,731,501 26,281,601 -21.12%
Descriptions of cause with above 30% change of relevant data on a YoY basis
15
2022 Annual Report of Zhejiang Supor Co., Ltd.
□ Applicable Not applicable
(4) Performance of important sales contracts and purchase contracts signed till this reporting period
□ Applicable Not applicable
(5) Structure of operating costs
Category of industry and product
Unit: RMB
2022 2021
Increase/decrease
Industrial classification Item Proportion of Proportion of
Amount Amount YoY (%)
operating cost operating cost
Cookware Operating cost 4,277,114,265.06 28.57% 4,955,161,624.35 29.81% -13.68%
Electric appliances Operating cost 10,486,986,687.23 70.06% 11,468,837,009.63 69.00% -8.56%
Others Operating cost 205,227,888.28 1.37% 197,614,526.82 1.19% 3.85%
Unit: RMB
2022 2021
Increase/decrease
Category of product Item Proportion of Proportion of
Amount Amount YoY (%)
operating cost operating cost
Cooking appliances Operating cost 6,446,395,980.91 43.07% 7,026,157,205.54 42.27% -8.25%
Food processor appliances Operating cost 2,477,448,255.92 16.55% 2,913,355,186.94 17.53% -14.96%
Cookware and utensils Operating cost 4,277,114,265.06 28.57% 4,955,161,624.35 29.81% -13.68%
Other household electric appliances Operating cost 1,768,370,338.68 11.81% 1,726,939,143.97 10.39% 2.40%
(6) Change of merger scope during the reporting period
Yes □ No
See "VIII. Change on merger scope" of SECTION X "FINANCIAL STATEMENT" for details.
(7) Important change or adjustment for the Company's businesses, products or services during the reporting period
□ Applicable Not applicable
(8) Main sales customers and suppliers
Main sales customers
Total amount of sales to top 5 customers (RMB) 7,371,337,030.15
Proportion of total amount of sales of top 5 customers in the year's total
36.54%
sales (%)
Proportion for related party's sales amount of sales amount of top 5
23.18%
customers in annual total sales amount
Information on the Company's top 5 major customers
Proportion in the total sales amount of the
SN Customer Sales amount (RMB)
year (%)
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2022 Annual Report of Zhejiang Supor Co., Ltd.
1 SEB S.A. and its subsidiaries 4,676,023,198.91 23.18%
2 Customer 1 1,097,983,191.51 5.44%
3 Customer 2 971,919,851.09 4.82%
4 Customer 3 334,773,987.60 1.66%
5 Customer 4 290,636,801.04 1.44%
Total -- 7,371,337,030.15 36.54%
Instruction for main customers' other cases
□ Applicable Not applicable
The Company's main supplier
Total purchasing value from top 5 suppliers (RMB) 1,438,678,623.26
Proportion of total purchase amount of top 5 suppliers in the year's total
11.52%
purchasing value
Proportion for related party's purchase amount of purchase amount of
0.00%
top 5 suppliers in annual total purchase amount
Information on the Company's top 5 suppliers
Proportion in the total purchase amount of
SN Supplier Purchasing value (RMB)
the year (%)
1 Supplier 1 377,079,036.68 3.02%
2 Supplier 2 327,831,500.57 2.62%
3 Supplier 3 257,127,987.95 2.06%
4 Supplier 4 239,353,204.90 1.92%
5 Supplier 5 237,286,893.16 1.90%
Total -- 1,438,678,623.26 11.52%
Instruction for main suppliers' other cases
□ Applicable Not applicable
3. Costs
Unit: RMB
Increase/decrease
2022 2021 Descriptions of major changes
YoY (%)
Sales expenses 2,156,297,058.63 1,909,953,095.54 12.90%
Administrative
374,060,640.28 400,779,608.67 -6.67%
expenses
Mainly due to the increase of deposit interests and exchange
Financial expenses -97,423,287.91 -6,482,301.16 -1,402.91%
gains during the reporting period.
R&D expenses 416,259,356.99 450,110,510.51 -7.52%
4. R&D input
Applicable □ Not applicable
Oriented by consumers' demand, the Company engages in R&D of the differential products that meet kitchen demand and local eating and
life habits. The Company lays emphasis on R&D investment, boosts technical innovation actively, further explores product category and adds
product additional value; respects customer's experience and focuses on all details of consumer use in order to realize safe, environmentally friendly,
17
2022 Annual Report of Zhejiang Supor Co., Ltd.
convenient and fashionable products. R&D expenditure in this year accounts for 5.92% and 2.06% of net assets and operating income audited in
the recent period.
R&D personnel of the Company
2022 2021 Change proportion
Quantity of R&D personnel (person) 1,363 1,378 -1.09%
Proportion of R&D personnel 13.33% 11.64% 1.69%
Educational background structure of R&D personnel
Bachelor's degree 567 513 10.53%
Master's degree 53 44 20.45%
Age composition of R&D personnel
＜ 30 years old 381 378 0.79%
30-40 years old 682 709 -3.81%
R&D investment of the Company
2022 2021 Change proportion
Amount of R&D input (RMB) 416,259,356.99 450,110,510.51 -7.52%
Proportion of R&D input in total operating
2.06% 2.09% -0.03%
income
Capitalization amount of R&D input (RMB) 0.00 0.00 0.00%
Proportion of Capitalization R&D input in
0.00% 0.00% 0.00%
R&D input
Cause and influence of major changes of the Company's R&D personnel composition
□ Applicable Not applicable
Reason for large change for proportion of total R&D input in operating income compared with that of last year
□ Applicable Not applicable
Reason and rational introduction for large capitalization change of R&D input
□ Applicable Not applicable
5. Cash flow
Unit: RMB
Item 2022 2021 Increase/decrease YoY (%)
Subtotal of cash inflows from operating
23,863,910,846.37 24,022,963,105.23 -0.66%
activities
Subtotal of cash outflows from operating
20,703,955,600.53 21,973,081,536.54 -5.78%
activities
Net cash flows from operating activities 3,159,955,245.84 2,049,881,568.69 54.15%
Subtotal of cash inflows from investing
3,290,816,398.77 1,599,917,532.89 105.69%
activities
Subtotal of cash outflows from investing
3,762,872,224.32 1,260,464,895.97 198.53%
activities
Net cash flows from investing activities -472,055,825.55 339,452,636.92 -239.06%
Subtotal of cash inflows from financing 11,094,652.76 6,308,689.63 75.86%
18
2022 Annual Report of Zhejiang Supor Co., Ltd.
activities
Subtotal of cash outflows from financing
2,776,624,440.47 1,600,215,585.25 73.52%
activities
Net cash flows from financing activities -2,765,529,787.71 -1,593,906,895.62 -73.51%
Net increase in cash and cash equivalents -47,798,926.68 787,945,760.02 -106.07%
Instruction for main influence factors of relevant data with YoY (%) changed seriously
Applicable □ Not applicable
1. The net cash flows from operating activities increased by 54.15% year-on-year, mainly due to the cash outflow decrease for goods purchased
and laboring services received during the reporting period.
2. The net cash flows from investing activities decreased by 239.06% year-on-year, mainly due to cash outflow increase for investment in financial
products and term deposits with maturity more than 3 months during the reporting period.
3. The net cash flows from financing activities decreased by 73.51% year-on-year, mainly due to the dividend expenditure increase in cash outflow
of financing activities during the reporting period.
4. The net increase in cash and cash equivalents decreased by 106.07% year-on-year, mainly due to the cash outflow increase in financing activities
during the reporting period.
Reason for great change between net cash flow caused by operating activities and annual net profits during the reporting period
□ Applicable Not applicable
V. Analysis on Non-main Business
□ Applicable Not applicable
VI. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: RMB
End of 2022 Beginning of 2022 Increase/
decrease
Percentage to Percentage to Descriptions of major changes
Amount Amount in
total assets total assets proportion
Mainly due to cash flow increase from the
Monetary
3,563,140,907.75 27.51% 2,654,052,417.47 19.09% 8.42% Company's operating activities during the
capital
reporting period.
Accounts Mainly due to the export accounts receivable
1,926,518,118.38 14.87% 2,716,945,985.33 19.55% -4.68%
receivable decrease at the end of the reporting period.
Mainly due to the reasonable control of
Inventories 2,494,922,856.42 19.26% 3,096,517,055.33 22.28% -3.02%
inventory during the reporting period.
Long-term
No significant change during the reporting
equity 62,196,139.53 0.48% 65,600,611.64 0.47% 0.01%
period.
investment
No significant change during the reporting
Fixed assets 1,303,075,391.03 10.06% 1,291,902,992.54 9.29% 0.77%
period.
Construction No significant change during the reporting
12,005,654.73 0.09% 26,482,779.31 0.19% -0.10%
in progress period.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Right-of-use No significant change during the reporting
190,718,962.82 1.47% 195,528,644.13 1.41% 0.06%
assets period.
Mainly due to the increase in advance
Contract
1,153,932,879.53 8.91% 893,741,863.21 6.43% 2.48% payments from some distributors by
liabilities
subsidiaries during the reporting period.
Lease No significant change during the reporting
150,779,916.58 1.16% 157,420,210.81 1.13% 0.03%
obligation period.
Mainly due to the increase in the amount of
Receivables
235,957,044.34 1.82% 3,312,225.62 0.02% 1.80% bank acceptance bills of subsidiaries at the end
financing
of the reporting period.
Mainly due to the maturity and delivery of
Other current
450,986,016.76 3.48% 2,055,027,382.63 14.78% -11.30% term deposit investment at the end of the
assets
reporting period.
Mainly due to the increase of negotiable
Other debt
1,024,794,890.43 7.91% 298,191,205.49 2.15% 5.76% certificates of deposit at the end of the
investment
reporting period.
High proportion of overseas assets
□ Applicable Not applicable
2. Assets and liabilities measured at the fair value
Applicable □ Not applicable
Unit: RMB
Profit and loss Accumulated
Impairment
from fair fair value Amount of Amount of
Opening loss of the
Item value changes changes purchasing of the selling of the Other changes Closing balance
balance current
in the current included into period current period current period
period equity
Financial assets
1. Transactional
financial assets
(excluding 180,312,742.31 5,768,586.86 550,000,000.00 304,698,801.38 431,382,527.79
derivative
financial assets)
2. Receivables
3,312,225.62 232,644,818.72 235,957,044.34
financing
3. Other debt
298,191,205.49 845,344,912.23 105,140,393.12 18,556,700.08 1,056,952,424.68
investments
Total 481,816,173.42 5,768,586.86 1,395,344,912.23 409,839,194.50 251,201,518.80 1,724,291,996.81
Financial
0.00 0.00 0.00 0.00 0.00 0.00
liabilities
Content of other changes
Receivables financing: As the demand of daily fund management, the Company will discount or transfer an endorsed bill, the business mode of
related bank acceptance bill including not only collect contract cash flow but sales as the target, so reclass the bank acceptance bill as financial
assets measured at the fair value with their changes included into other comprehensive incomes.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Other debt investment：Supor's business model of managing negotiable large deposit certificates is both to collect the contract cash flow and to
sell the negotiable large deposit certificates, which are classified as financial assets measured at fair value and whose changes are included in other
comprehensive income. Interest income is accrued according to the effective interest rate method during the expected duration.
Are there any major changes about the valuation attribute of Company's main assets during the reporting period?
□ Yes No
3. Restrictions of assets and rights by the end of reporting period
See 53. "Assets with title or use right restrictions", VII "Notes to items of consolidated financial statements", SECTION X "FINANCIAL
REPORT" for details.
VII. Investment Situation Analysis
1. General condition
□ Applicable Not applicable
2. Significant equity investment to be acquired during the reporting period
□ Applicable Not applicable
3. Significant non-equity investment to be handled during the reporting period
□ Applicable Not applicable
4. Investments in Financial Assets
(1) Conditions of the securities investment
□ Applicable Not applicable
The Company involves no securities investment during the reporting period.
(2) Derivative investment
Applicable □ Not applicable
1) Hedging derivative investment during the reporting period
Applicable □ Not applicable
Unit: RMB 10,000
Proportion of
Profit and loss Accumulated
investment amount at
Initial from fair fair value Purchase amount Sales amount
Closing the end of the period
Derivative investment type investment value changes changes during the during the
balance in the Company's net
amount in the current included into reporting period reporting period
assets at the end of the
period equity
reporting period
Bank - foreign exchange
14,790.55 995.28 0 140,267.02 150,313.35 4,744.22 0.67%
derivative instruments
Total 14,790.55 995.28 0 140,267.02 150,313.35 4,744.22 0.67%
21
2022 Annual Report of Zhejiang Supor Co., Ltd.
Explanation on whether the
Company's accounting
policies and specific
The company recognizes, measures, and presents in accordance with Accounting Standards for Business Enterprises
accounting principles of
No. 22 -- Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises
hedging business have
No. 24 - Hedging, and Accounting Standards for Business Enterprises No. 37 - Presentation of Financial
significantly changed during
Instruments. There are no significant changes compared to the previous reporting period.
the reporting period
compared with the previous
reporting period
During the reporting period, the company conducted derivative transactions and fair value hedging in accordance
with the variety and duration determined by the Board of Directors. During the reporting period, the amount
Explanation on realized
included in the current profit and loss was 9.9528 million yuan, and the amount included in equity was 0 yuan. The
gains and losses during the
amount of profit or loss is entirely derived from the net fair value change formed by the forward settlement of
reporting period
foreign exchange and the hedged item. During the reporting period, our company did not engage in foreign exchange
swap business, with no profit or loss or equity impact.
The value of hedging tools of our Company changed inversely to that of hedged foreign exchange accounts
receivable and payable, effectively achieving the risk management objectives.
During the reporting period, the Company conducted assessment on the fluctuation of the value of foreign exchange
Explanation on hedging
accounts receivable and payable, and signed forward exchange contracts with banks in the same currency. Such
effect
hedging tool was one of those approved by the Board of Directors.
The execution complied with the internal control requirements and operated within the approved quota to ensure
that the hedging tools match the hedged items in the scale, term, and currency.
Capital source of derivative
Self-owned capital
investment
In order to hedge the foreign exchange risk in operating activities, reduce the impact of exchange rate fluctuations,
and give full play to the hedging function of foreign exchange derivative transaction, the Company implemented
foreign exchange derivative transaction business consistent with its business scale, term, and currency.
(I) Risks of conducting foreign exchange derivative transactions
1. Market risks: market risks, such as losses resulted from changes in the price of foreign exchange derivatives due
to the fluctuated underlying interest rate, exchange rate or other market price, may arise.
2. Internal control risks: considering the specialty and complexity of foreign exchange derivative transaction
business, inadequate internal control mechanisms may lead to risks.
3. Liquidity risks: risk of failure to complete transactions due to lack of market liquidity.
4. Performance risks: foreign exchange derivatives business faces the risk of default due to failed contract fulfillment
when the contract expires.
5. Legal risks: changes in relevant laws or violations of the relevant legal system by counterparty, resulting the
contract cannot be executed properly, may cause losses to the Company.
Risk analysis and control
(II) Risk response measures
measure explanation for
1. Clarify the principles of foreign exchange derivative transaction: foreign exchange derivative transaction is based
derivative holding a position
on the hedging principle to avoid risks from exchange rate fluctuations to the greatest extent, and based on market
during the reporting period
conditions, operation strategies shall be adjusted in time to improve hedging effects.
(including but not limited to
2. System construction: the Company has established the Management Measures for Foreign Exchange Derivative
market risk, liquidity risk,
Transactions, in which the scope of authorization, approval procedures, key operation points, risk management and
credit risk, operation risk and
information disclosure concerning foreign exchange derivative transactions are well defined, so that the conduct
law risk)
and risks of foreign exchange derivative transactions can be effectively regulated.
3. Product selection: prior to any foreign exchange derivative transaction, it's necessary to select an FX derivative
that suits the company's business context best, and is highly liquid and risk through a comparative analysis of various
counterparties and products, before conducting business. The Company used forward instruments for general hedge
and swap contracts for rolling hedge.
4. Counterparty management: be prudent when selecting counterparties for foreign exchange derivatives business.
The company only conducts foreign exchange derivative transaction business with large commercial banks and
other foreign exchange organization with legal qualifications, thus avoiding potential default and legal risks.
5. Management by specially-assigned persons: a special working group, set up by the Company's management
representatives, Fund Department, Financial Sharing Center, Audit Department, Securities Department and other
departments concerned, is responsible for the risk assessment, operation, recording and supervision of foreign
exchange derivative transactions. The working group is supposed to decide on emergency mitigations in case of any
significant changes in the market.
Changes in market prices or The delivered foreign exchange derivatives were recorded as the profit and loss with instruments by our Company.
product fair values of Changes in the fair value of undelivered foreign exchange derivatives were evaluated by the comparison between
22
2022 Annual Report of Zhejiang Supor Co., Ltd.
invested derivatives during the exchange rate of the derivative contract and the corresponding forward foreign exchange quotation provided by
the reporting period, specific the contracting bank at the end of the period.
methods used for analysis of
the fair value of derivatives
and the setting of related
assumptions and parameters
Litigation-related situation
Not applicable
(if applicable)
As for approval of derivative
investment, the Board of
April 1, 2022
Directors will announce
disclosure date (if any)
Special opinion on situations The independent directors have released the independent opinions about the Proposal for Implementation of the
of the Company's derivative Foreign Exchange Derivative Transaction Business of the Company, the details of which are shown in the
investment and risk control Independent Opinion of Independent Directors on Relevant Matters disclosed in http://www.cninfo.com.cn on April
from independent directors 1, 2022.
2) Speculation derivative investment during the reporting period
□ Applicable Not applicable
During the reporting period, there was no speculative investment on derivatives.
5. Application of capital raised
□ Applicable Not applicable
No capital raised was used in reporting period
VIII. Sales for major assets and equity
1. Sales for major assets
□ Applicable Not applicable
The Company did not sell major assets till the end of the reporting period.
2. Sales for major equities
□ Applicable Not applicable
IX. Analysis for Main Holding Companies and Joint Stock Companies
Applicable □ Not applicable
Status of main subsidiaries and joint stock companies with influence on the Company's net profit exceeding 10%
Unit: RMB
Company Main Registered Operating Operating
Company name Total assets Net assets Net profit
type business capital income profit
Wuhan Supor Cookware RMB 91.16
Subsidiary Cookware 1,230,265,524.10 324,246,136.60 3,371,269,904.20 139,860,750.29 105,359,801.51
Co., Ltd. million
Zhejiang Supor RMB
Electrical
Electrical Appliances Subsidiary 133.6971 1,480,071,463.87 372,779,119.70 3,771,989,629.93 155,838,593.92 117,609,671.31
products
Manufacturing Co., Ltd. million
23
2022 Annual Report of Zhejiang Supor Co., Ltd.
Small
Zhejiang Shaoxing
domestic
Supor Domestic RMB 610
Subsidiary appliances, 2,621,794,128.67 1,899,174,648.33 5,838,977,709.44 1,084,929,408.78 943,463,674.32
Electrical Appliances million
kitchen
Co., Ltd.
appliances
Subsidiary obtaining and disposal details during the reporting period
Applicable □ Not applicable
Subsidiary obtaining and disposal mode Influence on overall production, operation and
Company name
during the reporting period performance
No influence on overall production, operation and
Shanghai SEB Electrical Appliances Co., Ltd. Cancellation
performance
X. Structural Subject under the Company's Control
□ Applicable Not applicable
XI. Prospects for Future Development
1. Future development strategy and operation plan of the Company
As a new development pattern with domestic circulation as the core is constructed, under which domestic and international circulations
reinforce each other, the policies of expanding domestic demand and promoting consumption will continue to take effect. The strong magnetic
force of China's enormous domestic market remains unchanged, where the middle class and youngsters boost consumption growth constantly. It
is predicted that the consumption will resume in 2023, and consumers will pay more attention to healthy and high-quality life, which will become
a trend of industrial evolution and consumption upgrade in the future.
The Company will persistently implement the predefined strategies and guidelines, with the consumers' demand as the orientation, constantly
promote the product innovation strategy and quality product strategy, and further give play to the competitive advantages of the Company in the
kitchenware sector in terms of diversified brands and product categories. It will take advantage of the consumption upgrade opportunity, cultivate
new businesses and new product categories, promote the development of segment categories, and meet the diversified consumption demand.
In terms of channels, the Company will make constant efforts to promote online channel renovation, consolidate and expand the achievements
of reforms, give full play to the professionalism and flexibility under the diversified business modes, and further improve the direct sale capacity
of e-commerce. It will expand the first-mover advantage of the social e-commerce platform, and improve the scale and profitability; make the
cooperation with major operators and resource utilization more efficient; innovate promotion patterns, thereby continuously expanding its online
sales and market share; continue improving the service level and efficiency in the major retail systems in China and in international shopping
market offline to strive to become the strategic supplier of more key retail channels, continuously explore the third and fourth markets, further
enhance the cooperation with e-commerce platforms on the O2O channels, and expedite the penetration into markets in lower-tier cities.
In terms of brand building, the Company will comprehensively update the visual brand image, e-commerce packaging image, and terminal
image in line with the new brand positioning, and strengthen the communication and connection between the brand and consumers, so as to
enhance the brand competitiveness. Through deepening the insight into the young generation, the Company will launch products that are more
fitting with their aesthetic and usage requirements, create more competitive product series such as kitchen utensils for solo dining and other young
and high-end ones to cover more young consumers and promote the brand development. We will continue to explore digital marketing, improve
the quality of content marketing and the efficiency of attracting traffic through advertising, and increase the success rate of newly launched products.
The Company will create a WeChat Member Shop to strengthen the consumer life time and user viscosity through exclusive member services, and
improve the operational efficiency of private traffic to form a closed loop.
With respect to export business, the Company, regardless of uncertain international situation, the Company will keep advancing the
cooperation with SEB in links such as R&D, design and manufacturing, enlarge production scale, acquire scale cost-based competitive advantage
and improve core competence of foreign trade in virtue of order transfer advantage of SEB.
24
2022 Annual Report of Zhejiang Supor Co., Ltd.
With regard to industrial aspect, the Company will further conduct cost optimization and lean economy program, actively respond to adverse
effect caused by price rise of raw materials, strengthen basic management over R&D, promote market's rapid response capacity of industrial
system, and continuously improve cost competitiveness. Meanwhile, under the guidance of the national "carbon peaking and carbon neutrality
goals " strategy, the Company continues to introduce the concepts of green operation in responsible supply, low-carbon logistics, green
consumption and other aspects. With the goal of low-carbon action, the Company improves the utilization rate of resources, continuously reduces
greenhouse gas and waste emissions, and promotes the sustainable development of the industry and enterprises. In 2022, the Company will add a
number of carbon reduction plans, such as distributed photovoltaic power generation projects, green finance payment, etc.
With respect to talent training, the Company will strengthen talent echelon construction and improve long-term incentive mechanism
continuously; improve management level of basic and medium management personnel, enhance subjective initiative of employees and build an
active and efficient working atmosphere for employees.
2. Possible risks and countermeasures
(1) Risk from macroeconomic fluctuation
In 2022, Chinese macroeconomy was hit by unexpected factors such as international macroeconomy, etc., with the growth rate slowing down
considerably. In addition, the overall industry scale of the cookware and small domestic appliances declined. However, with a series of policies
and measures to boost domestic markets consumptions, the domestic appliance market demands is expected to pick up in 2023. Looking forward
to 2023, the keynote of steady macroeconomic growth will remain unchanged. Faced with the possible macroeconomic fluctuation risks, Supor
will continuously adhere to established strategies, actively develop new categories and new businesses, expand market segments and foster new
growth points.
In terms of foreign trade, due to the impacts of geopolitical conflicts, high inflation and soaring energy prices, the prospect of global economic
growth remains bleak. The Company and its foreign trade customers will make joint efforts to advance the R&D of new products, improve
efficiency and reduce costs to cope with the weak international market.
(2) Risk from production element price change
In 2022, the prices of the main raw materials of cookware and small domestic appliances, such as aluminum, copper, stainless steel and
plastics, dropped slightly, however, still at a high level. In order to cope with the risks caused by the fluctuation of production element price, 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 intensifying market competitiveness
As the operating cost of enterprise rises, industry brand concentration will be further improved, and there is the risk of intensifying market
competition in the field of cookware and small domestic appliances. In order to seize market share, high-end brand will continue to sink channel
and regulate product and price strategy, and some high-end brand will enter shopping market 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 gross margin. The Company will give 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
Recent exchange rate fluctuations may adversely affect export.
The Company has adopted RMB settlement for main export customer SEB Groupe with low exchange rate risk.
XII. Investigation & Research, Communication and Interview Activities During the Reporting Period
Applicable □ Not applicable
Type of Main content talked
Reception Reception Reception Index for basic condition of investigation and
Reception time reception about and materials
place manner object survey
object provided
25
2022 Annual Report of Zhejiang Supor Co., Ltd.
See the Management File for Investor Relations of
Analysts and Performance and
Conference Supor on April 6, 2022 disclosed by the Company in
April 1, 2022 Company Organization institutional operating conditions
call http://www.cninfo.com.cn on April 6, 2022 for
investors in 2021
details.
See the Management File for Investor Relations of
Analysts and Performance and
Conference Supor on April 6, 2022 disclosed by the Company in
April 1, 2022 Company Organization institutional operating conditions
call http://www.cninfo.com.cn on April 6, 2022 for
investors in 2021
details.
See the Supor Performance Presentation Session
and Roadshow Activity Information on April 20,
Investors of Annual performance
April 20, 2022 Company Others Others 2022 disclosed by the Company in
the Company presentation session
http://www.cninfo.com.cn on April 20, 2022 for
details.
See the Management File for Investor Relations of
Analysts and Performance and
Conference Supor on May 5, 2022 disclosed by the Company in
April 29, 2022 Company Organization institutional operating conditions
call http://www.cninfo.com.cn on May 5, 2022 for
investors in Q1 of 2022
details.
See the Management File for Investor Relations of
Analysts and Performance and
Conference Supor on May 5, 2022 disclosed by the Company in
April 29, 2022 Company Organization institutional operating conditions
call http://www.cninfo.com.cn on May 5, 2022 for
investors in Q1 of 2022
details.
Semiannual See the Management File for Investor Relations of
Analysts and
Conference performance and Supor on September 1, 2022 (1) disclosed by the
August 31, 2022 Company Organization institutional
call operating conditions Company in http://www.cninfo.com.cn on
investors
in 2022 September 1, 2022 for details.
Semiannual See the Management File for Investor Relations of
Analysts and
Conference performance and Supor on September 1, 2022 (2) disclosed by the
August 31, 2022 Company Organization institutional
call operating conditions Company in http://www.cninfo.com.cn on
investors
in 2022 September 1, 2022 for details.
Semiannual See the Management File for Investor Relations of
Analysts and
September 1, Conference performance and Supor on September 2, 2022 (1) disclosed by the
Company Organization institutional
2022 call operating conditions Company in http://www.cninfo.com.cn on
investors
in 2022 September 2, 2022 for details.
Semiannual See the Management File for Investor Relations of
Analysts and
September 1, Conference performance and Supor on September 2, 2022 (2) disclosed by the
Company Organization institutional
2022 call operating conditions Company in http://www.cninfo.com.cn on
investors
in 2022 September 2, 2022 for details.
Semiannual See the Management File for Investor Relations of
Analysts and
September 2, Conference performance and Supor on September 5, 2022 disclosed by the
Company Organization institutional
2022 call operating conditions Company in http://www.cninfo.com.cn on
investors
in 2022 September 5, 2022 for details.
See the Management File for Investor Relations of
Analysts and Performance and
October 25, Conference Supor on October 26, 2022 (1) disclosed by the
Company Organization institutional operating conditions
2022 call Company in http://www.cninfo.com.cn on October
investors in Q3 of 2022
26, 2022 for details.
See the Management File for Investor Relations of
Analysts and Performance and
October 25, Conference Supor on October 26, 2022 (2) disclosed by the
Company Organization institutional operating conditions
2022 call Company in http://www.cninfo.com.cn on October
investors in Q3 of 2022
26, 2022 for details.
26
2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION IV CORPORATION GOVERNANCE
I. Basic Situation
During the reporting period, the Company further standardized the operation of the Company and improved the governance by continuously
building up and strengthening the corporate governance system, improving the internal control and management system, and deepening the
governing process strictly in accordance with the Company Law, the Securities Law and the Rules on the Corporate Governance of Listed
Companies, Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and the Shenzhen Stock Exchange Regulatory Guidelines for
Listed Companies No. 1-Standardized Operation of Listed Companies as well as other regulations of CSRC. By the end of the reporting period,
the actual governance of the Company was basically in compliance with the relevant regulations of corporate governance of listed companies
issued by the CSRC and Shenzhen Stock Exchange, and with the rules of established systems of the Company. No administrative regulation
measures were taken by regulatory department upon the Company.
(I) Relating to Shareholders and the General Meeting of Shareholders
During the reporting period, the Company has convened and held the general meetings of shareholders strictly according to the Rules for the
General Meetings of Shareholders of Listed Companies, Rules and Procedures for the Shareholders' Meeting, and other rules and requirements,
and ensured the legality and validity of the convening. According to the Implementing Rules for the Online Voting at the Shareholders' Assembly
of Listed Companies of Shenzhen Stock Exchange, the Company clearly defined the specific process of online voting and completely implemented
online voting of general meeting of shareholders, in order to involve medium and small investors in the online voting more effectively, and
guarantee the legitimate rights and interests of all shareholders, especially of the minority shareholders.
During the reporting period, three general meetings of shareholders were held. The convening and holding procedures, qualifications of
attended persons, voting procedures, voting results and resolution contents of the meeting conformed to laws and regulations and Articles of
Association.
(II) Relating to the Company and the Controlling Shareholder
During the reporting period, the Company was autonomous in business and operation, and kept independent of its controlling shareholder in
terms of assets, business, personnel, organization and finance. The Board of Directors, the Board of Supervisors and other internal organizations
operate independently. The Controlling Shareholder of the Company exercised its rights through the General Meeting of Shareholders, and did
not directly or indirectly intervene with the Company's decision-making or operating activities. The related transaction between the Company and
its Controlling Shareholder was fair and reasonable; the decision-making rules were in compliance with the relevant provisions; no fund occupation
by the Controlling Shareholder existed.
(III) Relating to Directors and the Board of Directors
The Company elected directors strictly according to the procedures stipulated in the Company Law and the Articles of Association, and
ensured the open, fair, equitable and independent appointment and election of directors, and the number and composition of the Board of Directors
follow relevant laws and regulations. Now the Company has three independent directors, representing 1/3 of its directors. All directors have
actively participated in the Company's operation and decision-making activities, performed their duties, attended the relevant training sessions
organized by supervisory departments, pursuant to the Company Law, the Shenzhen Stock Exchange Regulatory Guidelines for Listed Companies
No. 1-Standardized Operation of Listed Companies, the Articles of Association and the Rules and Procedures for Meetings of the Board of
Directors. The Board of Directors consists of Strategy Committee, Audit Committee and Compensation Committee with independent directors
fully exerting their specialties, which further improves the working efficiency and decision-making level of the Board of Directors and plays
significant roles in the Company's normative operation.
During the reporting period, six board meetings were held. The convening and holding procedures, qualifications of attended persons, voting
procedures, voting results and resolution contents of the meeting conformed to laws and regulations and Articles of Association.
(IV) Relating to Supervisors and the Board of Supervisors
The Company elected supervisors strictly according to the provisions under the Company Law and the Articles of Association. The number
of supervisors and composition of the Board of Supervisors met the requirement of relevant laws and regulations. All supervisors have performed
their duties as required by the Regulations of Procedure of the Board of Supervisors, effectively supervised the legality and regulatory compliance
27
2022 Annual Report of Zhejiang Supor Co., Ltd.
of important matters, related transactions, financial conditions, and duty fulfillment of directors and senior executives of the Company, and
maintained the legitimate rights and interests of the Company and its shareholders.
During the reporting period, six meetings of Board of Supervisors were held. The convening and holding procedures, qualifications of attended
persons, voting procedures, voting results and resolution contents of the meeting conformed to laws and regulations and Articles of Association.
(V) Relating to Performance Appraisal and the Incentive and Restraining Mechanism
The Company established and constantly improved the performance appraisal system and the incentive restraining mechanism for supervisors,
directors and senior executives. The appointment and remuneration for directors, supervisors and senior executives of the Company are open, clear
and in line with relevant laws and regulations. During the reporting period, the Company completed the registration of restricted stock grants
involved in the 2021 Restricted Stock Incentive Plan (Draft) and the 2022 Restricted Stock Incentive Plan (Draft), thus effectively offering
incentives for senior executives.
(VI) Relating to Information Disclosure and Transparency
The Securities Department of the Company is responsible for information disclosure and investor's relationship management. Abiding by
requirements of the CSRC and Shenzhen Stock Exchange and provisions on compilation of periodic reports in good faith, the department, in
association with the Financial Department of the Company, has timely and accurately compiled and submitted the 2021 Annual Report, 2022 First
Quarterly Report, 2022 Semiannual Report and 2022 Third Quarterly Report, based on the strict compliance with the non-disclosure rules before
the disclosure of the reports.
In accordance with the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange, the Securities Department of the Company
disclosed, after review and adoption by the Board of Directors or the General Meeting of Shareholders, the routine information (board meetings
and meetings of Board of Supervisors), fatal information (external investments, related transactions), and significant events truly, accurately,
completely, timely and fairly. During the reporting period, the Company issued 131 announcements and documents and fulfilled the filing
management of information disclosure documents and compliance with the non-disclosure rules before the disclosure of the reports. In particular,
the Company prepared process memorandums of important matter and management files of insider personnel before planned and implemented
important matters, which made the information disclosure timely, true, accurate, complete and fair. There was no irregular or untimely information
disclosure, and the Company has not been penalized by regulatory authorities. Meanwhile, in accordance with the requirements of the Investor
Relations Management System, the Company standardized the investor reception procedures. Besides, after the regular report disclosure, the
Company actively held online performance briefings and investor telephone exchange meetings to fully communicate with investors. And the
Record Sheet of Investor Relations Activities was released in time after the activities to ensure that all investors have fair access to company
information. In daily work, the Company also actively received consultations by arranging personnel to answer investors' hotlines and responding
to investors' questions on the interactive platform, so as to ensure that all shareholders of the Company, small and medium-sized investors in
particular, can gain the company information equally.
The Company won the thirteenth Tianma Award of "Best Investor Relations Award for Listed Companies in China" and the sixteenth China
Listed Companies Value Selection of "Top 100 Listed Companies on Main Board in China".
Is there any major variation between the actual situation of the Company's corporate governance, and laws, administrative regulations, and
stipulations issued by the CSRC concerning the governance of listed companies?
□ Yes No
There is no major variation between the actual situation of the Company's corporate governance, and laws, administrative regulations, and
stipulations issued by the CSRC concerning the governance of listed companies.
II. Independence of the Company Relative to the Controlling Shareholders and the Actual Controllers
in Ensuring the Company's Assets, Personnel, Finance, Organization, Business, etc.
(I) Independent and complete assets structure
The Company had its production and business operation place independent from that of the controlling shareholder, and had independent and
complete assets structure, independent production system, auxiliary production system and supporting facilities, land use right, housing ownership,
as well as independent purchasing and selling systems.
(II) Independence of personnel
28
2022 Annual Report of Zhejiang Supor Co., Ltd.
In terms of personnel, labor, personnel and remuneration management, the Company was completely independent. Such senior executives as
the General Manager, Vice General Manager, Board Secretary of Directors and Chief Financial Officer did not hold any position concurrently in
controlling shareholder or other subsidiaries excepting director and supervisors, nor receive any remuneration from the controlling shareholder or
other subsidiaries.
(III) Independence of finance
The Company has an independent financial department, has established independent accounting system and financial management system,
and makes financial decisions independently. It has opened independent bank accounts and pays taxes independently.
(IV) Independence of organizations
The Company has set up the organization independent from the controlling shareholder completely, and there exists no mixed operation or
management. It adopts a BU management system, and has departments directly under the Head Office and three BUs (cookware, small domestic
appliances and large kitchen appliances) and high-end business modules. Neither controlling shareholder nor any other company or individual has
intervened with the organization structuring of the Company. No "superior and subordinate relationship" exists between the controlling shareholder
and its functional departments on the one hand, and the Company and its functional departments on the other hand.
(V) Independence of business operation from shareholders or other related parties
The Company is mainly engaged in designing, producing and selling cookware, small domestic appliances, large kitchen appliances and
H&PC products, which are not produced by the controlling shareholder or any of its subsidiaries for the Chinese market. The Company has an
independent "procurement, production and sales" system. It operates business independently from shareholders or any other related party.
III. Horizontal Competition
□ Applicable Not applicable
IV. General Meetings of Shareholders and Interim General Meeting of Shareholders Held during the
Reporting Period
1. General meetings of shareholders during the reporting period
Proportion of
Session Meeting type participated Convening date Date of disclosure Meeting resolution
investors
Annual General Annual See Announcement on Resolutions of the Annual
Meeting of General General Meeting of Shareholders for 2021 Fiscal
8.19% April 25, 2022 April 26, 2022
Shareholders for Meeting of Year (2022-025) disclosed on
2021 Fiscal Year Shareholders http://www.cninfo.com.cn for details
First Interim Interim See Announcement on Resolution of the First
General Meeting General Interim General Meeting of Shareholders 2022
7.47% September 21, 2022 September 22, 2022
of Shareholders in Meeting of (2022-055) disclosed on
2022 Shareholders http://www.cninfo.com.cn for details
Second Interim Interim See Announcement on Resolutions of the Second
General Meeting General Interim General Meeting of Shareholders 2022
7.66% November 10, 2022 November 11, 2022
of Shareholders in Meeting of (2022-068) disclosed on
2022 Shareholders http://www.cninfo.com.cn for details
2. Interim General Meeting of Shareholders held at the request of preferred shareholders with restored voting right
□ Applicable Not applicable
29
2022 Annual Report of Zhejiang Supor Co., Ltd.
V. Directors, supervisors and senior executives
1. Basic information
Number Number
Quantity Quantity Quantity
of shares of
Expiry of of of other Reasons for
Commencement held at shares
Position date of increased decreased shares the increase
Name Position Gender Age date of term of the held at
status term of shares in shares in increased or decrease
office beginning the end
office this this or of shares
of the of the
period period reduced
period period
Thierry de LA
On- May 19,
TOUR Chairman Male 68 May 20, 2020 0 0 0 0 0 None
service 2023
D'ARTAISE
Legal
shareholding
reduction of
On- May 19,
Su Xianze Director Male 55 May 20, 2020 486,136 0 121,534 0 364,602 25% of the
service 2023
annual
shareholding
quantity
Stanislas de On- May 19,
Director Male 58 May 20, 2020 0 0 0 0 0 None
GRAMONT service 2023
Nathalie On- May 19,
Director Female 52 May 20, 2020 0 0 0 0 0 None
LOMON service 2023
Delphine
On- May 19,
SEGURA Director Female 53 April 22, 2021 0 0 0 0 0 None
service 2023
VAYLET
On- May 19,
Tai Wai Chung Director Male 63 May 20, 2020 0 0 0 0 0 None
service 2023
Independent On- May 19,
Chen Jun Male 46 May 20, 2020 0 0 0 0 0 None
director service 2023
Hervé Independent On- May 19,
Male 76 May 20, 2020 0 0 0 0 0 None
MACHENAUD director service 2023
Jean-Michel Independent On- May 19,
Male 76 May 20, 2020 0 0 0 0 0 None
PIVETEAU director service 2023
Chairman
Philippe On- May 19,
of Board of Male 63 May 20, 2020 0 0 0 0 0 None
SUMEIRE service 2023
Supervisors
On- May 19,
Zhang Junfa Supervisor Male 46 May 20, 2020 0 0 0 0 0 None
service 2023
On- May 19,
Lu Lanhua Supervisor Female 45 May 20, 2020 0 0 0 0 0 None
service 2023
Other
increased or
decreased
Cheung Kwok General On- May 19,
Male 58 March 31, 2021 0 0 0 142,000 142,000 changes are
Wah Manager service 2023
granted
restricted
stocks.
Reducing
shareholding
is the legal
Chief
On- May 19, shareholding
Xu Bo Financial Male 55 May 20, 2020 173,737 0 43,434 45,000 175,303
service 2023 reduction of
Officer
25% of the
annual
shareholding
30
2022 Annual Report of Zhejiang Supor Co., Ltd.
quantity;
Other
increased or
decreased
changes are
granted
restricted
stocks.
Reducing
shareholding
is the legal
shareholding
reduction of
25% of the
Vice
annual
General
On- May 19, shareholding
Ye Jide Manager, Male 47 May 20, 2020 52,191 0 13,048 20,000 59,143
service 2023 quantity;
Board
Other
Secretary
increased or
decreased
changes are
granted
restricted
stocks.
Total -- -- -- -- -- -- 712,064 0 178,016 207,000 741,048 --
If there is any separation of directors and supervisors and dismissal of senior executives during the reporting period
□ Yes No
Change of Directors, Supervisors and Senior Executives
□ Applicable Not applicable
2. Position information
Professional backgrounds, main working experiences, and main responsibilities in the Company of present directors, supervisors and senior
executives
1. Directors
Mr. Thierry de LA TOUR D'ARTAISE: Chairman, Master of Management of Paris ESCP; Chartered Accountant; incumbent Chairman of
SEB Group; former CEO and Vice President of Group SEB, Chairman of CALOR, CFO and CEO of CROISIERES PAQUET, audit manager of
Coopers & Lybrand.
Mr. Stanislas de GRAMONT: Director, graduated from ESSEC Business School (Paris); incumbent CEO of SEB Group, and former Chief
Operating Officer of SEB Group, executive management positions at Danone and CEO of Suntory Beverage & Food Europe.
Ms. Nathalie LOMON: Director, graduated from NEOMA Business School; incumbent chief financial officer of SEB Group, held various
executive management positions at Ingenico and Rio Tinto Alcan.
Ms. Delphine SEGURA VAYLET: Director of the Company, holds Master degree in International Labor Law of University Paris 1 Panthéon
Sorbonne; incumbent Senior Executive Vice President of Human Resources, SEB Group, and held various executive management positions at
TOTAL Group as Vice-President of Group Human Resources and Zodiac Aerospace as Group Human Resources Director and COMEX member
and STMicroelectronics as Group Human Resources Director at Digital Consumer Division.
Mr. Su Xianze: Director, CEIBS EMBA, Senior Economist; incumbent Chairman and General Manager of Supor Group Co., Ltd., Chairman
of Taizhou Supor Real Estate Development Co., Ltd. and Chairman of Zhejiang Supor Water Heater Co., Ltd.. He has severed as Chairman of the
Company from 2001 to April 2014, and General Manager from 2001 to March 2010.
31
2022 Annual Report of Zhejiang Supor Co., Ltd.
Mr. Tai Wai Chung Director: graduated from the Industrial Engineering Major of University of Hong Kong; Executive vice-president of
Asian Division of SEB S.A., had served as the director and general manager of Apple (Great China) Company, marketing director of Electrolux
Appliances Company, director and general manager of Shanghai SEB Electric Appliances Co., Ltd. and general manager of the Company before.
Mr. HervéMACHENAUD, independent director, graduated from Sciences Po; President of Hong Ma Consulting Services (Beijing) Co., Ltd..
He formerly served as Leader of EDF Group Delegation to China, Senior Executive Vice President of EDF Group, Director in charge of EDF
Generation and Engineering (DPI) and Asia-Pacific Director.
Mr. Jean-Michel PIVETEAU: independent director, doctor of business administration and master of political science. He is Senior Partner of
B&A M and A Dept. , Chairman of the Board of Supervisors of MicroCred China, Vice-Chairman of the Board of Supervisors of BAOBAB. He
formerly served as Adviser for China to BNP Paribas Chairman, Senior Adviser to BNP Paribas for China, Country Head of Paribas Bank in
numerous Asian counties and Middle East countries ; and is Chairman Emeritus of the "French Foreign Trade Advisors" of China.
Mr. Chen Jun: independent director, doctor of accounting of Xiamen University, post-doctor of business administration (accounting) of
Zhejiang University. He is now the chairman, professor, doctoral tutor of the Department of Finance and Accounting of Zhejiang University. He
is the director of the Institute of Finance and Accounting of Zhejiang University, deputy director of the Global Entrepreneurship Research Center
of Zhejiang University, director of the Research Center of Listed Companies of Zhejiang Business Research Institute of Zhejiang University. He
also serves as vice president of Zhejiang Association of Chief Accountants.
2. Supervisors
Mr. Philippe SUMEIRE: Supervisor, graduated from Aix-en-Provence Law School with PHD's degree of Private Law and Comparative Law.
He is Vice President Legal Affairs of Groupe SEB and Board Secretary. He has worked first for PEUGEOT S.A and ATOCHEM (chemical
industry) and then held the position of General Counsel and Company Secretary for CLUB MED, GIAT INDUSTRIES and MOULINEX S.A.
Mr. Zhang Junfa: Supervisor, graduated from Northwestern Polytechnical University; incumbent Chairman of the Trade Union of the
Company and office head of Yuhuan Site, and working first for security section, and then worked in legal affairs department and office.
Ms Lu Lanhua: Supervisor, graduated from Shanghai University of Finance and Economics and MBA of University of Manchester, member
of ACCA; incumbent Financial Planning & Analysis Manager; working first for Greif Flexible Products & Service (China) as Accounting Manager,
UNSA (Hangzhou) Packaging Manufacturing Ltd. as Financial Manager, and account of Bangxiang Electronics (Shenzhen) Co., Ltd.
3. Senior executives:
Mr. Cheung Kwok Wah: General Manager of the Company, Bachelor of Economics, Chinese University of Hong Kong, MBA of Kelly
School of Business, Indiana University, former Chairman and President of the International Business Department of China Feihe Co., Ltd., and
former Chairman and CEO of NestléGreater China.
Mr. Xu Bo: Chief Financial Officer, graduated from Central University of Finance and Economics; member of CICPA and ACCA; former
Senior Auditing Manager of Shenzhen Zhonghua Certified Public Accountants, Chief Financial Officer of Yue Sai Kan Cosmetics Limited, Chief
Financial Officer of Molex Interconnect (Shanghai) Co., Ltd., Chief Financial Officer of Microsoft China.
Mr. Ye Jide: Board Secretary, Vice General Manager, and manager of securities department, CEIBS EMBA; incumbent independent director
of Beijing DeepZero Intelligent Technology Co., Ltd., and former equipment section chief, office director and assistant to the general manager of
the Company.
Position information in shareholders' companies
Applicable □ Not applicable
Expiry date Payment or allowance
Shareholding Positions in shareholders' Commencement date of
Name of term of from the shareholding
company companies term of office
office company
Thierry de LA TOUR
SEB Group Chairman May 01, 2000 Yes
D'ARTAISE
Vice President Legal Affairs of
Philippe SUMEIRE SEB Group December 10, 2001 Yes
Groupe SEB and Board Secretary
Nathalie LOMON SEB Group Chief Financial Officer September 30, 2019 Yes
Stanislas de GRAMONT SEB Group CEO December 3, 2018 Yes
32
2022 Annual Report of Zhejiang Supor Co., Ltd.
Delphine SEGURA Senior Executive Vice President
SEB Group January 1, 2021 Yes
VAYLET of HR
Senior Executive Vice President
Tai Wai Chung SEB Group October 1, 2017 Yes
of Asia Continental Division
Position information in other companies
Applicable □ Not applicable
Payment or
Positions in other Commencement date of Expiry date of term of allowance from
Name Name of other unit
companies term of office office other
companies
Chairman and General
Su Xianze Supor Group Co., Ltd. March 8, 2018 Yes
Manager
Taizhou Supor Real Estate
Su Xianze Chairman May 16, 2018 No
Development Co., Ltd.
Zhejiang Supor Water
Su Xianze Chairman November 15, 2019 No
Heater Co., Ltd.
Dean of the
Department of Finance
Chen Jun Zhejiang University and Accounting, March 1, 2019 Yes
Professor and
Doctoral Supervisor
Hongma Consulting
Hervé MACHENAUD President January 1, 2017 Yes
Services (Beijing) Co., Ltd.
Beijing DeepZero
Ye Jide Intelligent Technology Co., Independent director October 30, 2021 October 29, 2024 No
Ltd.
Punishment of securities regulatory commission on directors, supervisors and senior executives of the Company at present or leaving during the
reporting period
□ Applicable Not applicable
3. Remuneration of Directors, Supervisors and Senior Executives
Decision-making procedures, determination basis of remuneration and actual payment for directors, supervisors and senior executives
Decision-making procedures The remuneration for directors, supervisors and senior executives of the Company shall be in strict compliance
of remuneration for directors, with the Rules and Procedures for the Board of Directors and the Rules and Procedures for the Shareholders'
supervisors and senior Meeting, as well as the regulations of the Company's Articles of Association and the Company Law.
executives
Remuneration basis for The directors, supervisors and senior executives of Company are paid according to their positions and
Directors, Supervisors and corresponding responsibilities and the Company's salary system, with an annual bonus based on the performance
Senior Executives evaluated.
Remuneration for Directors, Supervisors and Senior Executives during the reporting period
Unit: RMB 10,000
Whether the
Remuneration remuneration is
Name Position Gender Age Position status receivable from the gained from the
Company related party of the
Company
Thierry de LA TOUR D'ARTAISE Chairman Male 68 On-service
Su Xianze Director Male 55 On-service
Stanislas de GRAMONT Director Male 58 On-service
33
2022 Annual Report of Zhejiang Supor Co., Ltd.
Nathalie LOMON Director Female 52 On-service
Delphine SEGURA VAYLET Director Female 53 On-service
Tai Wai Chung Director Male 63 On-service
Chen Jun Independent director Male 46 On-service 25.00 No
Hervé MACHENAUD Independent director Male 76 On-service 25.00 No
Jean-Michel PIVETEAU Independent director Male 76 On-service 25.00 No
Chairman of Board of
Philippe SUMEIRE Male 63 On-service
Supervisors
Zhang Junfa Supervisor Male 46 On-service 31.74 No
Lu Lanhua Supervisor Female 45 On-service 78.38 No
Cheung Kwok Wah General Manager Male 58 On-service 911.61 No
Chief Financial
Xu Bo Male 55 On-service 308.54 No
Officer
Vice General
Ye Jide Manager, Board Male 47 On-service 114.06 No
Secretary
Total -- -- -- -- 1,519.33 --
VI. Duty Performance of Directors during the Reporting Period
1. Board of Directors during the reporting period
Session Convening date Date of disclosure Meeting resolution
See Announcement of Resolution of the 11th Meeting of the
The 11th Session of the Seventh
January 6, 2022 January 7, 2022 Seventh Board of Directors (2022-003) disclosed on
Board of Directors
http://www.cninfo.com.cn for details
See Announcement of Resolution of the 12th Meeting of the
The 12th Session of the Seventh
March 31, 2022 April 1, 2022 Seventh Board of Directors (2022-010) disclosed on
Board of Directors
http://www.cninfo.com.cn for details
See Announcement of Resolution of the 13th Session of the
The 13th Session of the Seventh
April 28, 2022 April 29, 2022 Seventh Board of Directors (2022-029) disclosed on
Board of Directors
http://www.cninfo.com.cn for details
See Announcement of Resolution of the 14th Meeting of the
The 14th Session of the Seventh
August 30, 2022 August 31, 2022 Seventh Board of Directors (2022-045) disclosed on
Board of Directors
http://www.cninfo.com.cn for details
See Announcement of Resolution of the 15th Session of the
The 15th Session of the Seventh
October 12, 2022 October 13, 2022 Seventh Board of Directors (2022-058) disclosed on
Board of Directors
http://www.cninfo.com.cn for details
See Announcement of Resolution of the 16th Session of the
The 16th Session of the Seventh
October 24, 2022 October 25, 2022 Seventh Board of Directors (2022-061) disclosed on
Board of Directors
http://www.cninfo.com.cn for details
2. Attendance of board meeting and general meeting of shareholders by directors
Attendance of board meeting and general meeting of shareholders by directors
Due attendance Presence in Presence via Entrusted Absence on Absent for twice Attendance
Name of directors
of board on-site communication presence in board continuously on of general
34
2022 Annual Report of Zhejiang Supor Co., Ltd.
meetings during board on board board meetings meetings board meetings? meeting of
the reporting meetings meetings (times) (times) shareholders
period (times) (times) (times)
Thierry de LA
6 0 6 0 0 No 0
TOUR D'ARTAISE
Stanislas de
6 0 6 0 0 No 0
GRAMONT
Nathalie LOMON 6 0 6 0 0 No 0
Delphine SEGURA
6 0 6 0 0 No 0
VAYLET
Su Xianze 6 1 5 0 0 No 0
Tai Wai Chung 6 2 4 0 0 No 1
Hervé
6 0 6 0 0 No 0
MACHENAUD
Jean-Michel
6 0 6 0 0 No 0
PIVETEAU
Chen Jun 6 0 6 0 0 No 3
Explanation on absence for twice continuously
None
3. Objections by directors to company issue
Were there any objections raised by directors to company issues?
□ Yes No
There was no objection raised by any director to company issues during the reporting period.
4. Other explanations of duty performance of directors
Was there any advice raised by directors to company issues adopted by the Company?
Yes □ No
Explanation on adoption or non-adoption of the advice from directors
During the reporting period, all directors of the Company were responsible and diligent. They paid close attention to the reports about
Company news by press and on the Internet and understood progress of the Company's important matters timely. They reviewed the information
reports provided by the Company periodically, and gave relevant comments and advices. They exerted their specialties fully, performed the duties
as directors actively and maintained the legitimate rights and interests of the Company and minority shareholders.
VII. Situation of Special Committees under the Board of Directors during the Reporting Period
Other
Specific
circumstances
Name of the Meeting Convening Important opinions and circumstances of
Members Content of the meeting relating to the
Committee times date suggestions put forward disputed matters
performance of
(if any)
duties
Chen Jun, Jean- The Audit Committee 1. The Audit Committee
Audit Michel reviewed and discussed approved the 2022 audit
March 30,
Committee PIVETEAU, 4 1. External audit plan (focusing on the None None
2022
Nathalie opinions; inventory management)
LOMON 2. Key data of the 2021 and the 2022 key follow-
35
2022 Annual Report of Zhejiang Supor Co., Ltd.
financial statement; up project plan.
3. 2021 internal control 2. The Audit Committee
achievement, and 2022 recommended sharing and
internal control plan; discussing with
4. Performance of professionals the best
internal audit projects in experiences and methods
2021, and 2022 audit in internal control
plan and key audit management.
findings rectification 3. The Audit Committee
and follow-up plan; reviewed and discussed
5. Main conclusions of the qualifications of the
external audit; external auditor and
proposed the Board of
Directors to review and
approve KPMG as the
audit service provider of
the Company in 2022.
4. The Audit Committee
fully recognized the full
communication between
external and internal audit
as well as external audit
and independent directors.
The Committee also
suggested that external
audit companies can offer
more valuable opinions
and suggestions for
Supor's internal
construction and the
Company's governnance
by making use of their
professional advantages.
The Audit Committee
reviewed and discussed
1. Progress of internal
control projects in 2022;
2. Progress of the
June 30,
implementation of None None
2022
internal audit projects
and rectification of key
audit findings in 2022;
3. Results of external
audit and review
The Audit Committee
reviewed and discussed
1. External audit
opinions; The Audit Committee
2. Progress of internal recognized the progress of
control projects in 2022; internal control projects
August 29,
3. Progress of the invloved anti-fraud policy, None None
2022
implementation of internal control manual
internal audit projects and internal control
and rectification of key evaluation.
audit findings in 2022;
4. Progress of external
audit
The Audit Committee
November
reviewed and discussed None None
30, 2022
1. Progress of internal
36
2022 Annual Report of Zhejiang Supor Co., Ltd.
control projects in 2022;
2. Progress of the
implementation of
internal audit projects
and rectification of key
audit findings in 2022;
3. Results of external
audit and review
The Compensation
Committee reviewed
and discussed 1.
Summary of the
employment situation of
the Company in 2021; 2.
Annual labor cost and The Compensation
remuneration of senior Committee agreed to the
executives and proposal and recognized
March 30, employee supervisors in the Company's efforts in
None None
2022 2021; 3. Implementation employment management,
of Restricted Stock organizational talent
Incentive Plan; 4. strategy and remuneration
Performance of strategy.
corporate social
Hervé
responsibilities; 5.
MACHENAUD,
Organization
Jean-Michel
Compensation development and
PIVETEAU,
Committee 2 position information of
Delphine
core executives.
SEGURA
The Compensation
VAYLET
Committee reviewed
and discussed 1.
Employment status of
the Company in the first The Compensation
six months of 2022; 2. Committee agreed to the
Labor costs in the first proposal and recognized
six months of 2022; 3. the Company's efforts in
August 29,
Restricted Stock employment management, None None
2022
Incentive Plan of 2022; organizational talent
4. Performance of strategy and performance
corporate social of the corporate social
responsibilities; 5. responsibility.
Organization
development and
position information of
core executives.
VIII. Work of the Board of Supervisors
During the reporting period, did the Board of Supervisors find any risk about the Company?
□ Yes No
The Board of Supervisors held no objection to the issues supervised during the reporting period.
37
2022 Annual Report of Zhejiang Supor Co., Ltd.
IX. Employees of the Company
1. Number of Employees, professional and education conditions
Number of in-service employees of the parent company at the end of the
1,848
reporting period (persons)
Number of in-service employees of the main subsidiaries at the end of
8,376
the reporting period (persons)
Total number of in-service employees at the end of the reporting period
10,224
(persons)
Total number of employees paid during current period (person) 10,224
Retired employees for whom the parent company and major subsidiaries
32
should cover expenses (person)
Profession composition
Job description Quantity (person)
Production personnel 5,683
Sales personnel 1,626
Technician 1,914
Financial personnel 180
Administrative personnel 821
Total 10,224
Education
Education category Quantity (person)
Postgraduate and above 156
Junior college or university 3,478
Technical secondary school or high school 2,918
Others 3,672
Total 10,224
2. Remuneration policy
The Company adopts floating salary system for all employees. Salary that we provide to employees includes pre-tax basic salary, performance
salary and various incentive bonuses in the form of currency; we also offer various non-monetary welfares such as commercial insurance, internal
and external training, internal development and comfortable working environment.
We provide employees with competitive salary and welfare to keep a certain degree of competitiveness and absorb talents; while in the
Company, to stabilize those key employees, embody the Company's value orientation, motivate self-improvement of employee and create high
performance.
3. Training plan
1) Training system:
Guided by strategic planning and business development needs, Supor relies on employees' career development and professional ability
improvement to carry out training on professional and technical sequences and management sequences. According to the planning of talent
38
2022 Annual Report of Zhejiang Supor Co., Ltd.
development strategy and coordinating with talent echelon construction, the Company designs learning projects systematically and at different
levels.
Training type Training hours Actual Number of Trainees Average (H)
Online trainings in 2022 57,060 3,604 15.83
Offline trainings in 2022 231,092 12,408 18.62
The detailed offline training data in 2022 are as follows:
Position level Training hours (H)
Senior management 1,927
Middle level 10,297
General employees 86,643
Front-line employees 132,225
Total training hours 231,092
Type Actual Number of Trainees
Number of male employees trained 7,734
Number of female employees trained 4,674
Total number of participants 12,408
2) Various forms
Supor lays emphasis on the innovation of employee training. In order to promote the training experience and leaning conversion rate, the
Company facilitates learning in multiple perspectives through diverse forms involved online learning, live streaming, offline learning, project
workshops, internal and external thematic exchange sessions, and cross-fields visits.
3) Internal inheritance
According to the planning of talent development strategy and coordinating with talent echelon construction, the Company irregularly
organizes professional personnel in relevant fields to extract knowledge, develop courses and impart their organizational and personal experience.
We also provide instructor and tutor resources which are mainly from internal managers to employees to improve the competence and speed up
the growth of employees and practice our talent building and development policies.
4. Labor outsourcing
Applicable □ Not applicable
Total hours of labor outsourcing (Hours) 11,560,078.77
Total remuneration paid for labor outsourcing (RMB) 251,936,898.45
X. Profit Distribution and Conversion from Capital Reserves to Share Capital during the Reporting
Period
Formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies during the reporting period
Applicable □ Not applicable
During the reporting period, the Company implemented the profit distribution plan in strict accordance with the Articles of Association and
other relevant provisions, where the dividend distribution standard and proportion were clear and definite and the relevant decision-making
procedures and mechanisms were complete.
(1) Profit Distribution Plan 2021
39
2022 Annual Report of Zhejiang Supor Co., Ltd.
The Company held the 12th Session of the Seventh Board of Directors and the 11th Session of the Seventh Board of Supervisors on March 31,
2022, and held the Annual General Meeting of Shareholders for 2021 Fiscal Year on April 25, 2022, which deliberated and approved the Proposal
on Profit Distribution Plan 2021. The Company's Profit Distribution Plan 2021 is: based on the 808,678,476 shares at the end of 2021 (shares in
the Company’s special stock repurchase account were granted to incentive objects on January 27, 2022), the Company will distribute all
shareholders cash dividends of RMB 19.30 per 10 shares (tax included), and total amount of cash dividends is RMB 1,560,749,458.68. The
Company will issue 0 bonus shares (tax included) and not convert capital reserves to capital. On May 26, 2022, the equity distribution of the
Company for 2021 was completed.
(II) Profit Distribution Plan for Third Quarter of 2022
The Company held the 16th Session of the Seventh Board of Directors and the 15th Session of the Seventh Board of Supervisors on October
24, 2022, and deliberated and approved the Proposal on Profit Distribution Plan for Third Quarter of 2022 on the Second Interim General Meeting
of Shareholders 2022 on November 10, 2022. The Company's Profit Distribution Plan for Third Quarter of 2022 is: based on the 805,329,407
shares at the end of third quarter of 2022 (total capital stock of 808,654,476 shares at the end of third quarter of 2022 deducted by 3,325,069 shares
of repurchased shares in the Company’s special stock repurchase account), the Company will distribute all shareholders cash dividends of RMB
12.50 per 10 shares (tax included), and total amount of cash dividends is RMB 1,006,661,758.75. The Company will issue 0 bonus shares (tax
included) and not convert capital reserves to capital. The equity distribution of the Company for third quarter of 2022 was completed on December
6, 2022.
Special description of cash dividend policy
Whether it meets the requirements in Articles of Associations or resolutions of the Shareholders'
Yes
Meeting:
Whether the dividend standard and proportion are definite and clear: Yes
Whether the relevant decision procedure and mechanism are complete: Yes
Whether the independent director performs obligations and plays roles: Yes
Whether the minority shareholders have opportunity in giving opinions and claims, and whether the
Yes
legal interests of minority shareholders are protected sufficiently:
Where the cash dividend policy is adjusted or changed, and whether the conditions and procedures
Yes
are compliant and transparent:
Information on profit-making during the reporting period and positive undistributed profit of parent company for shareholders but without cash
dividend distribution plan
□ Applicable Not applicable
Profit distribution and conversion from capital reserves to share capital during the reporting period
Applicable □ Not applicable
Number of bonus stock per 10 shares (shares) 0
Amount of dividend (RMB) per 10 shares (tax-inclusive) 30.30
Equity base in distribution plan (shares) 805,116,907
Amount of cash dividends (tax-inclusive) 2,439,504,228.21
Amount of cash dividends realized in other modes (e.g. repurchased
162,937,785.50
shares) (RMB)
Total cash dividends (including other modes) (RMB) 2,602,442,013.71
Distributable profits (RMB) 4,331,212,701.66
Proportion of total cash dividends (including other modes) in total
100%
distribution of profits
Cash Dividends of This Time
Others
40
2022 Annual Report of Zhejiang Supor Co., Ltd.
Detailed information on profit distribution and conversion of capital reserve to capital pre-proposal
In accordance with the standard unqualified audit report provided by KPMG Certified Public Accountants (Special General Partnership), the
parent company of Zhejiang Supor Co., Ltd. realized the net profits of RMB1,807,644,330.09 in 2022, and could distribute profits of RMB
4,331,212,701.66 to shareholders at the end of the year based on relevant provisions of Company Law and the Articles of Association, after
allocating RMB 0 as legal surplus reserve (note: the accumulated amount of legal surplus reserve reached 50% of total capital stock), plus the
undistributed profit of RMB 5,141,307,982.39 at the beginning of this reporting period, deducting the annual cash dividends for 2021 fiscal year
of RMB 1,559,494,958.68 distributed on May 26, 2022, the cash dividends for third quarter of 2022 of RMB 1,008,228,633.75 distributed on
December 6, 2022, and decreased distributable profit RMB 50,016,018.39 due to the grant of Restricted Stocks on January 27, 2022 and November
10, 2022 with respect to 2021 and 2022 Restricted Stock Incentive Plan, .
The profit distribution plan is detailed as follows: based on the 805,116,907 shares at the end of 2022 (total capital stock of 808,654,476 shares
at the end of 2022 deducted by 3,537,569 shares of repurchased shares in the Company’s special stock repurchase account), the Company will
distribute all shareholders cash dividends of RMB 30.30 per 10 shares (tax included), and total amount of cash dividends is RMB
2,439,504,228.21 . The Company will issue 0 bonus shares (tax included) and not convert capital reserves to capital.
During the period from the disclosure of this profit distribution preplan to the actual implementation date, if the Company’s capital stock changes
due to conversion of convertible bonds into stocks, share repurchases, equity incentive exercise, and refinancing and new share listing, it will be
executed based on the changed capital stock, and the above distribution ratio remains unchanged.
XI. Implementation of Company's Equity Incentive Plan, Employee Equity Holding Plan or Other
Employee Incentive Measures
Applicable □ Not applicable
1. Equity incentive
(I) 2021 Equity Incentive Plan
1.The Company deliberated and approved the Proposal on Grant of Restricted Stock to Incentive Objects at the 11th Session of the Seventh Board
of Directors held on January 6, 2022. In accordance with the authorization of the Third Interim General Meeting of Shareholders 2021, the Board
of Directors of the Company determined January 6, 2022 as the grant date to grant 1,209,500 restricted stocks to 293 eligible incentive objects.
The restricted stocks of the Company's 2021 Restricted Stock Incentive Plan were transferred and registered to incentive objects on January 27,
2022.
Please refer to the Announcement of Grant of Restricted Stock to Incentive Objects and the Announcement of Completion of Registration
for Grant of Restricted Stock of 2021 for details, which were disclosed on Securities Times, China Securities Journal, Securities Daily, and
http://www.cninfo.com.cn on January 7, 2022 and January 28, 2022 accordingly.
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 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 RMB 1 per share. The Proposal on
Repurchasing and Canceling a Part of Restricted Stock has been adopted by 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 RMB 1 per share and paid
totally RMB 24,000 to the above incentive objects. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited, the Company completed repurchase and cancellation on June 29, 2022.
Please refer to the Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of Completion of Repurchase
and Cancellation of Restricted Stock disclosed on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on
April 1, 2022, and June 30, 2022 for details.
5. On August 30, 2022, the 14th Session of the Seventh Board of Directors and the 13th Session of the Seventh Board of Supervisors reviewed and
adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of thirteen incentive objects due to their
resignation, the Company has decided to repurchase and cancel 53,000 shares of Restricted Stock at the price of RMB 1 per share. The cancellation
of restricted stock repurchase can only be implemented after the deliberation and approval by the General Meeting of Shareholders in the Company.
Please refer to the Announcement of Repurchasing and Canceling a Part of Restricted Stock disclosed on Securities Times, China Securities
Journal, Securities Daily, and http://www.cninfo.com.cn on August 31, 2022 for details.
41
2022 Annual Report of Zhejiang Supor Co., Ltd.
(II) 2022 Equity Incentive Plan
1. The 14th Session of the Seventh Board of Directors and the 13th Session of the Seventh Board of Supervisors held by the Company on August
30, 2022 reviewed and adopted the Proposal on 2022 Restricted Stock Incentive Plan (Draft) and its Abstract. The Company intended to grant a
total of 1,332,500 shares of restricted stocks to the 290 incentive objects, accounting for about 0.165% of the Company's total share capital. The
independent directors of the Company expressed their independent opinions on the equity incentive plan, and the Board of Supervisors of the
Company conducted preliminary verification on the list of incentive objects.
For details, please refer to the Restricted Stock Incentive Plan (Draft) 2022 and its Abstract disclosed on Cninfo (http://www.cninfo.com.cn)
on August 31, 2022.
2. The Company disclosed the Verification Opinions on List of Incentive Objects for 2022 Restricted Stock Incentive Plan on September 16, 2022.
According to the Company's Board of Supervisors, the incentive objects enrolled into the incentive plan meet the conditions stipulated in relevant
laws, regulations and regulatory documents, and their subject qualification as the incentive objects of the Restricted Stock Incentive Plan is legal
and effective.
For detailed contents, see Verification Opinions on List of Incentive Objects for 2022 Restricted Stock Incentive Plan disclosed on Securities
Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on September 16, 2022.
3. The First Interim General Meeting of Shareholders 2022 convened by the Company on September 21, 2022 deliberated and approved the
Proposal on 2022 Restricted Stock Incentive Plan (Draft) and its Abstract, the Proposal on Assessment Measures for the Implementation of the
2022 Restricted Stock Incentive Plan, and the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors
to Deal with Issues Related to the Company's Restricted Stock Incentive Plan.
See Announcement on Resolutions of the First Interim General Meeting of Shareholders 2022 disclosed on Securities Times, China Securities
Journal, Securities Daily, and http://www.cninfo.com.cn on September 22, 2022 for details.
4. The Company disclosed the Self-verification on Buying or Selling the Company's Shares by Insiders and Incentive Objects of 2022 Restricted
Stock Incentive Plan on September 22, 2022. During the planning of this incentive plan, the Company did not find that persons with insider
information used the information to buy or sell stocks. Moreover, 6 months prior to the first public disclosure of this Incentive Plan (Draft), the
Company found there were no persons with insider information or incentive objects used the insider information to buy and sell stocks.
For detailed contents, see Self-verification on Buying or Selling the Company's Shares by Insiders and Incentive Objects of 2022 Restricted
Stock Incentive Plan disclosed on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on September 22,
2022.
5. The Company deliberated and approved the Proposal on Grant of Restricted Stock to Incentive Objects at the 15th Session the Seventh Board of
Directors and the 14th Session of the Seventh Board of Supervisors held on October 12, 2022. The Company plans to grant 1,253,500 shares of
restricted stocks to totally 288 incentive objects, and postpone a total of 79,000 shares of restricted stocks to 2 incentive objects. The Company
completed the registration of restricted stock grants on November 10, 2022.
For detailed contents, see Announcement of Grant of Restricted Stock to Incentive Objects and the Announcement of Completion of
Registration for Grant of Restricted Stock of 2022 disclosed on Securities Times, China Securities Journal, Securities Daily, and
http://www.cninfo.com.cn on October 13, 2022, and November 11, 2022.
6. The Company deliberated and approved the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects at the 18th Session
the Seventh Board of Directors and the 17th Session of the Seventh Board of Supervisors held on January 31, 2023. The Company plans to grant
79,000 shares of restricted stocks to two incentive objects. The Company completed the registration of restricted stock grants on February 24,
2023.
Please refer to the Announcement of Grant of Postponed Portion of Restricted Stock to Incentive Objects and the Announcement of
Completion of Registration for Grant of Postponed Portion of Restricted Stock of 2022 for details, which were disclosed on Securities Times,
China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on February 2, 2023 and February 27, 2023.
Equity incentives received by the Company's directors and senior executives
Applicable □ Not applicable
Unit: share
42
2022 Annual Report of Zhejiang Supor Co., Ltd.
Number
Shares Exercise
Numbe of Shares Numbe Restricte
which price of Market Restricte
r of newly- which r of d stock Granting
have exercised price at the d stock Shares Restricte
stock granted can be stock newly price of
been shares end of held at unlocke d stock
options stock exercise options granted restricted
Name Position exercise during the reporting the d in held at
held at options d during held at during stock
d during reporting period beginnin current the end
the end during the the end the (RMB/share
the period (RMB/share g of period of period
of the the reportin of the reporting )
reportin (RMB/share ) period
year reportin g period period period
g period )
g period
Cheun
g General
0 0 0 0 0 0 0 0 0 142,000 1 142,000
Kwok Manager
Wah
Chief
Xu Bo Financia 0 0 0 0 0 0 0 0 0 45,000 1 45,000
l Officer
Vice
General
Manager
Ye Jide 0 0 0 0 0 0 0 0 0 20,000 1 20,000
, Board
Secretar
y
Total -- 0 0 0 0 -- 0 -- 0 0 207,000 -- 207,000
Mr. Cheung Kwok Wah, the General Manager, was granted 60,000 and 82,000 restricted stocks of the 2021 and 2022 Equity
Incentive Plans, respectively, for a total of 142,000 shares.
Mr. Xu Bo, Chief Financial Officer, was granted 45,000 restricted stocks in the 2021 Equity Incentive Plan. Moreover, because
Mr. Xu Bo has decreased his shareholdings of the Company on July 28, 2022, his 58,000 restricted stocks granted in the 2022
Remarks (if any) Equity Incentive Plan need to be suspended. The suspended stocks have been registered on February 24, 2023.
Mr. Ye Jide, Vice General Manager and Board Secretary, was granted 20,000 restricted stocks in the 2021 Equity Incentive Plan.
Moreover, because Mr. Ye Jide has decreased his shareholdings of the Company on July 28, 2022, his 21,000 restricted stocks
granted in the 2022 Equity Incentive Plan need to be suspended. The suspended stocks have been registered on February 24,
2023.
Evaluation mechanism and incentive of senior executives
The Company has established a perfect performance appraisal system and salary system for senior executives, which directly connects the
work performance of senior executives with their salary. Based on the indicators of the KPI system established at the beginning of 2022, the
Company has conducted the year-end appraisal in January 2023 of senior executives of their working abilities, duty performance and target
fulfillment, meanwhile, distributed annual performance salary. During the reporting period, the Company has implemented the 2022 Restricted
Stock Incentive Plan (Draft) and granted restricted stocks to senior executives. The Compensation Committee of the Board of Directors, as the
special committee under the Board of Directors, reviewed the appraisal result.
2. Implementation of the employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentive measures
□ Applicable Not applicable
43
2022 Annual Report of Zhejiang Supor Co., Ltd.
XII. Development and Implementation of Internal Control Systems during the Reporting Period
1. Development and implementation of internal controls
In accordance with the requirements of the Basic Standards for Internal Control of Enterprises and based on the principles of
comprehensiveness, significance, balance, adaptability and cost-effectiveness, the Company establishes and improves the internal control system
implemented by the Board of Directors, Board of Supervisors, managers and all employees to achieve the Company's strategic development goals,
with a view to reasonably ensuring the legal compliance of the Company's operation and management, asset security, and authenticity and integrity
of financial statements and related information, and to improving business efficiency and effectiveness.
1. Control environment
(1) Governance structure
In accordance with the provisions of national laws and regulations, resolutions of the Board of Shareholders, and the Articles of Association,
the Company defines the duties and authorities, rules of procedure, and working procedures of the Board of Shareholders, Board of Directors,
Board of Supervisors and managers, so as to form a governance mechanism for the separation of decision-making, implementation, and supervision.
The Board of Directors is accountable for the Board of Shareholders, and exercises the business decision-making power of the Company according
to law, and shall be accountable for the establishment, improvement and effective implementation of internal control. The special committees
pertaining to strategy, audit and remuneration set up under the Board of Directors provide support for scientific decision-making, in which the
Audit Committee is responsible for reviewing and supervising the effective implementation of internal controls and the self-evaluation on internal
controls. The Board of Supervisors is accountable for the Board of Shareholders and supervises the Board of Directors and senior executives of
the Company to perform their duties according to law. The senior management composed of the President and the Chief Financial Officer are
accountable for the Board of Directors, and take charge of the daily operation and management activities of the Company.
(2) Organizational structure and division of authorities and responsibilities
In view of the business characteristics and internal control requirements, the Company reasonably sets up internal organizations at all levels,
such as the functional departments of the headquarters, business departments, production bases, marketing centers and other internal institutions,
and defines the division of authorities and responsibilities in the organization structure chart, job descriptions, business flow charts, authorization
system documents and other internal management documents, so as to form a working mechanism that allows performance of corresponding duties
with mutual restriction and coordination.
(3) Internal audit
The Company has set up an audit department, which reports to the Audit Committee of the Board of Directors. The audit department evaluates
the level of internal control and the efficiency of process control and organization by means of internal audit, internal control consultation and
organizational risk assessment, and timely reports to the management and the Audit Committee for the internal control defects and potential risks
detected in the process of supervision and inspection, and promotes relevant departments to formulate action plans and follow up the corresponding
rectification performance to ensure the effective implementation of internal controls.
(4) Human resource policies
In accordance with the development strategy, current situation of human resources, and future demand forecast, the Company formulates
and implements human resources policies conducive to the sustainable development of the Company. The Personnel Management System,
Recruitment Management System, Remuneration Management System, Training Management System, Attendance Management System, and
Employee Manual formulated by the Company clearly define the principles and processes for the employees in aspects of selection and
appointment, dimission and transfer, remuneration assessment, training, rewards and punishments, labor disciplines, information confidentiality,
etc.
(5) Enterprise culture
The Company adheres to the enterprise spirit of "With Pressure, Face Pressure, Overcome pressure", sets up the enterprise style of "Patriotism,
Integrity, Modesty, Pragmatism, Innovation and Transcendence, and devotes to improving the living quality of thousands upon thousands of
families in their kitchens and homes, so that "Where there is a home, there is Supor" can become the consensus of more and more consumers.
Through the establishment of a series of internal norms such as the Basic Law of Supor, the Code of Professional Ethics of Employees and the
Rules for Anti-spam the Company integrates the efficient and pragmatic corporate culture into all aspects of daily production and operating
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2022 Annual Report of Zhejiang Supor Co., Ltd.
activities, and enhances the employees' sense of responsibility and sense of mission, normalizes employee behaviors, enhances corporate cohesion
and coagulation, and constantly improves the overall image of the Company.
2. Risk assessment
According to the established control objectives and the characteristics of business development in different stages, the Company introduces
different forms of measures, such as risk self-assessment, anti-corruption questionnaire, risk mapping, and tax risk matrix, to carry out
comprehensive, systematic and continuous collection of relevant information, with the method combining both quantitative and qualitative
measures, in order to timely identify and systematically analyze the internal risks in the production and operating processes in terms of human
resources, management, innovation, finance, assets, health, safety, environmental protection, data confidentiality, business loss, and continuing
operation, and the external risks in the production and operating processes in terms of politics, economy, law, taxation, science and technology,
natural environment, social environment, etc., and to determine the risk response strategy that matches the Company's risk bearing capacity and
take appropriate control measures to achieve effective risk control, on the basis of weighing the principle of cost-benefit.
3. Control activity
In the course of daily operation, the Company continuously establishes and improves various management systems, covering financial
accounting, internal control, human resources, material procurement, inventory management, asset management, technological R&D, production
process, quality control, product sales, health, safety and environment, comprehensive management, etc., to ensure the compliance of all work
aspects. Under the various institutional frameworks, the Company reasonably ensures the realization of business objectives through the
implementation of key control measures and procedures.
Key controls must include: separated control for incompatible posts, approval control for authorization, accounting system control, property
protection and control, budget control, operational analysis control, performance assessment control and other controls.
(1) Approval control for authorization: the Company defines the scope, authority, procedure, responsibility and other relevant aspects of
authorization and approval, and the management staff at all levels of the Company must exercise the corresponding functions and powers within
the scope of authorization, and the handling personnel must also handle economic transactions within the scope of authorization and bear
corresponding liabilities.
(2) Separated control for incompatible posts: the Company sets up a reasonable division of labor, scientifically divides responsibilities and
powers, and formulates the System of Separation of Responsibilities and Powers in accordance with the principle of separation of incompatible
duties, so as to form a mechanism of mutual checks and balances. Incompatible duties mainly include: feasibility study and decision approval,
decision approval and implementation, implementation and supervision & inspection.
(3) Accounting system control: in strict accordance with the provisions of the Accounting Standards for Business Enterprises, the Company
formulates the financial policies and processes such as the Accounting Preconditions and Basic Principles, Accounting System of Accounting
Subjects, Revenue Recognition System, Consolidated Statement System, and Account Settlement Process, clearly defines the handling procedures
for accounting vouchers, accounting books and financial statements, so as to ensure the authenticity and integrity of accounting data.
(4) Property protection and control: the Company strictly restricts unauthorized personnel from accessing and disposing assets, and adopts
measures such as regular stocktaking, asset records, account verification, and property insurance, to ensure the safety of all kinds of assets in
accordance with the requirements of the Inventory Taking and Regulation System, and Fixed Assets Management System formulated by the
Company.
(5) Budget control: the Company implements comprehensive budget management in accordance with the Budget System, and the responsible
departments at all levels prepare their budgets in accordance with their responsibilities and powers, and regularly follow up the implementation of
their budgets after being reviewed and approved by the management.
(6) Operational analysis control: the Company has established a regular operation analysis mechanism, with which the management can
utilize the data and information acquired in the production, procurement, sales, finance and other systems to comprehensively analyze and evaluate
the Company's operating risks and market situations, timely detect any problems, identify the causes and formulate effective rectification plans
for improvement.
(7) Performance assessment control: according to the requirements of the Company's Remuneration Management System, the Company's
organizations at all levels have established and implemented a comprehensive and systematic performance assessment system, to scientifically set
up performance assessment indicators of various individuals/groups, regularly organize assessment and objective evaluation, and take the
assessment results as the basis for employee remuneration adjustment, job promotion, reward and punishment, post transfer, dismissal, etc.
45
2022 Annual Report of Zhejiang Supor Co., Ltd.
4. Information and communication
According to the requirements of development strategy, risk control and performance assessment, the Company has established different
levels of internal reporting indicator systems, in order to enable the management at all levels to timely and comprehensively access all kinds of
internal and external information pertaining to production and management and promptly formulate business principles and policies adaptive to
business and environmental changes. The internal reporting systems make full use of information technology to build a scientific internal reporting
network based on reliable information systems such as SAP, BI, CRM, consolidated statements, and management statements.
The Company has established a special anti-fraud mechanism, clearly defined the key areas and key links of anti-fraud efforts and the anti-
fraud responsibilities and powers of relevant departments, and set up the solely-designated supervision channel to standardize the whistleblowing,
investigation, handling, reporting and follow-up processes of fraud cases. Besides, through e-mail, official website, WeChat official account,
contracts, training, meetings and other forms of measures, the Company publicizes the anti-fraud policies and supervision channels to employees,
suppliers, distributors and other stakeholders from time to time, so as to form an anti-fraud atmosphere which emphasizes on prevention and
combines both punishment and prevention.
5. Supervision on control
The Company has established an internal control and supervision mechanism, with which the independent directors and the Board of
Supervisors can fully and independently perform supervisory duties for the management of the Company, and carry out independent evaluation
and provide independent suggestions. The Company has formulated the Internal Audit System, and the special internal audit department under the
leadership of the Audit Committee of the Board of Directors can independently carry out internal audit, implement effective supervision over the
management and promote the effective implementation of internal controls. In the light of the situation of internal supervision, the Company
regularly carries out self-evaluation on the effectiveness of internal controls and issues Self-Evaluation Report on Internal Control System.
2. Significant internal control defects of internal control found during the reporting period
□ Yes No
XIII. Company's Management and Control of Subsidiaries during the Reporting Period
The headquarters of listed companies effectively monitors the subsidiaries through the following measures:
(1) Delegate and appoint senior executives of subordinate subsidiaries at the beginning of each year, and clearly define their terms of reference
and report objects.
(2) Supervise subordinate subsidiaries to formulate detailed management processes and risk control procedures for various business sectors and
functional areas under the principle frameworks of management systems of the headquarters and business divisions.
(3) Convene a monthly operating and financial meeting to review and follow up the implementation of the subsidiaries' business plans and the
completion of various performance evaluation indicators in a timely manner, in accordance with the Company's development and business
objectives specified in the annual budget planning meeting. Besides, various functional committees, such as product committee, and procurement
committee, also carry out effective monitoring over the daily operation and operating activities of the subsidiaries.
(4) The main financial and business information systems, including SAP, CRM, SRM, BI, OMS and BPM, are centrally managed in the
headquarters of listed companies, which is convenient for the headquarters to access and manage the production, sales and procurement of the
subsidiaries through system reports in real time. In addition, all subsidiaries are also required to submit management reports in respect of operation,
finance, industry, human resources, etc., to the headquarters on a monthly basis.
(5) The receipts and payments of major subsidiaries are subject to centralized allocation and disbursement of the Financial Sharing Center of the
headquarters of the listed companies, and the Financial Sharing Center is responsible for the preparation and reporting of the monthly balance
sheets, profit statements and cash flow statements of the subordinate subsidiaries, and convening regular meetings with subordinate subsidiaries
to analyze and follow up the changes of various financial data.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
(6) In accordance with the requirements of the Company's Management System for Information Disclosure Affairs, each subsidiary shall promptly
report to the headquarters of the listed companies relevant information pertaining to major business/financial and other matters, and provide
timely feedback on the progress or changes of major matters, and if necessary, go through the review and approval procedures of the Board of
Directors and Board of Shareholders.
(7) Timely identify the potential risks and major issues inside and outside the subsidiaries by means of internal audit, risk self-assessment, anti-
corruption questionnaire, management statement and anti-fraud investigation, etc., draw the management's attention to key areas and vulnerable
links, and promptly take measures to reduce relevant risks.
XIV. Internal Control Self-evaluation Report or Internal Control Audit Report
1. Self-evaluation report of internal control
Date of disclosure of full text of Evaluation
March 31, 2023
Report of Internal Control
Reference for disclosure of full text of Reference can be made to Self-Evaluation Report on Internal Control 2022 disclosed on
Evaluation Report of Internal Control Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn.
The proportion of total unit assets involved in
evaluation scope in total assets of the 100.00%
consolidated financial statement
The proportion of operating income involved in
evaluation scope in operating income of the 100.00%
consolidated financial statement
Defect Identification Standard
Categories Financial statement Non-financial statement
1) Identification standard of significant defects:
1) Identification standard of significant defects: unscientific decision procedure of the
fraud of directors, supervisors and senior Company, such as significant decision-making
executives of the Company; modification of mistakes which cause the M&A of significant
financial statement having been published; any enterprise project to fail in reaching expected
material misstatement of the current period objectives; violation of national laws and
financial statement found by CPA but having not regulations, such as heavy losses of enterprise
been found during internal control; and invalid caused by non-conforming products; significant
supervision by the Audit Committee, the Board adverse influence existing in the production and
of Supervisors and internal audit organization operation of enterprise caused by severe loss of
for internal control. medium and senior management persons and
2) Identification standard of important defects: senior technicians; and lack of system control or
Qualitative standard systematic invalidation for important business.
selection and application of accounting policies
violating accepted accounting criteria; one or 2) Identification standard of important defects:
several defect(s) on the control of closing defects on important business systems; failure
financial statement, and failure of reasonably of rectification for important defects found
guarantee the prepared financial statement is during internal control and internal supervision;
true and accurate; no check-and-balance system and severe loss of business persons on key
and control measures preventing fraud posts.
established. 3) Identification standard of general defects:
3) General defects refer to other internal control defects on general business systems; failure of
defects not constituting the standards of rectification for general defects found during
significant defects and important defects. internal control and internal supervision; and
severe loss of business persons on general posts.
Quantitative standard 1) Identification standard of significant defects: 1) Identification standard of significant defects:
47
2022 Annual Report of Zhejiang Supor Co., Ltd.
potential misstatement of total profit≥5% of direct property loss amount taking above
total profit; potential misstatement of total (inclusive) 0.5% in total assets, and causing
operating income≥2% of total operating significant adverse influence on the Company.
income; and potential misstatement of total 2) Identification standard of important defects:
assets≥2% of total assets. direct property loss amount taking above
2) Identification standard of important defects: (inclusive) 0.1% but no more than 0.5% in total
3% of total profit≤potential misstatement of assets, and causing no significant adverse
total profit＜5% of total profit; 1% of total influence on the Company.
operating income≤potential misstatement of 3) Identification standard of general defects:
total operating income＜2% of total operating direct property loss amount taking below 0.1%
income; and 1% of total assets≤potential in total assets, and causing significant adverse
misstatement of total assets＜2% of total assets. influence on the Company.
3) Identification standard of general defects:
potential misstatement of total profit ＜ 3% of
total profit; potential misstatement of total
operating income ＜ 1% of total operating
income; and potential misstatement of total
assets ＜ 1% of total assets.
Quantity of significant defects in financial
0
statement (pcs)
Quantity of significant defects in non-financial
0
statement (pcs)
Quantity of important defects in financial
0
statement (pcs)
Quantity of important defects in non-financial
0
statement (pcs)
2. Audit report of internal control
Applicable □ Not applicable
Deliberations in the audit report of internal control
We believe that your company has maintained effective internal control over financial reporting in all major aspects in accordance with the Basic
Standards for Internal Control of Enterprises and relevant regulations on December 31, 2022.
Disclosure of audit report of internal control Disclosed
Date of disclosure of full text of Audit Report of Internal Control March 31, 2023
Reference can be made to Audit Report on Internal Control 2022
Reference for disclosure of full text of Audit Report of Internal Control disclosed on Securities Times, China Securities Journal, Securities
Daily, and http://www.cninfo.com.cn.
Type of audit report opinion of internal control Standard opinions with no reservation
Significant defect in non-financial statements No
Did the accounting firm issue the audit report of internal control with non-standard opinions?
□ Yes No
Is the audit report of internal control issued by the accounting firm consistent with the opinions in self-evaluation report of the Board of Directors?
Yes □ No
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2022 Annual Report of Zhejiang Supor Co., Ltd.
XV. Rectification of Self-inspected Problems in the Special Action on Governance of Listed Companies
In January 2022, the CSRC revised and released the Guidelines for Articles of Association of Listed Companies, Rules for the General
Meeting of Shareholders of Listed Companies, Rules for Independent Directors of Listed Companies and other rules. In order to better improve
the Company's internal governance, the 12th Session of the Seventh Board of Directors was held on March 31, 2022, which deliberated and
approved the Proposal on Revising the Articles of Association, the Proposal on Revising Rules and Procedures for the Shareholders' Meeting, the
Proposal on Revising Rules and Procedures for the Board of Directors and the Proposal on Issuing New Working System for Independent Directors.
The abovementioned amendment to the Articles of Association and Rules and Procedures had been reviewed and approved at the Annual General
Meeting of shareholders for 2021 Fiscal Year held by the Company on April 25, 2022.
Subsequently, the Company will sort out and update the internal control systems issued by the Company in a timely manner in accordance
with the current laws and regulations, and will continuously establish and improve the internal control systems, to make them work more efficiently.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION V SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES
I. Major Environmental Issues
Do the listed company and its subsidiary belong to key pollutant discharging unit posted by the environmental protection department?
Yes □ No
Policies and industrial standards related to environmental protection
According to the Technical Specification for Application and Issuance of Pollutant Permit General Programme (HJ942-2018), the Self-
monitoring Technology Guidelines for Pollution Sources - General Rule (HJ819-2017) and the national standards for pollutants discharge, the
environmental impact assessment documents of construction projects and their administrative licenses, and the requirements in national
environment monitoring technical specifications, the Company has improved its self-monitoring scheme, which needs to be put on record by the
competent department for ecological environment under its jurisdiction.
Administrative permissions for environmental protection
In accordance with the relevant system, Zhejiang Supor Co., Ltd., Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd., Zhejiang
Shaoxing Supor Domestic Electrical Appliances Co., Ltd., Wuhan Supor Cookware Co., Ltd. have obtained the pollutant discharge permit on June
30, 2020, August 25, 2020, August 24, 2020 and September 11, 2020; The above certificates are valid for 3 years.
Industrial emission standard and pollutant discharge in production and operating activities
Type of
Name of
main Number Executive Total
Name of the main Distribution Total
pollutant Discharge of Discharge pollutant discharge Excessive
Company or pollutant or of discharge discharge
or mode discharge concentration/intensity discharge amount discharge
subsidiary specific ports amount
specific ports standard checked
pollutant
pollutant
"Quasi-IV"
standards in the
Table of
Effluent
Indexes and
Water
COD 30mg/L Standard 6.178t 8.662t/a None
pollutants
Limits for
Included
Urban Sewage
into urban
Wastewater Treatment
pipeline
discharge Stations in
after
1 port of the Taizhou
pollutants
wastewater "Quasi-IV"
are treated
station in standards in the
up to
plant area Table of
The Company standards
Effluent
Indexes and
Water Ammoniacal
1.5mg/L Standard 0.309t 0.433t/a None
pollutants nitrogen
Limits for
Urban Sewage
Treatment
Stations in
Taizhou
Comprehensive
Treatment
Workshop
Air Organized Scheme of Air
SO2 15 1# and 6# in ＜3 mg/m 0.829t 3.06t/a None
pollutants emission Pollutants for
plant area
Industrial
Furnace and
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Kiln (HDQ
[2019] No. 56)
Comprehensive
Treatment
Scheme of Air
Air Pollutants for
NOx 15 ＜8 mg/m 7.76t 14.66t/a None
pollutants Industrial
Furnace and
Kiln (HDQ
[2019] No. 56)
Discharge
Standard of
Pollutants for
Municipal
COD 1 12.2mg/l Wastewater 5.54t 14.6t/a None
Treatment
Plant
(GB18918-
General
Indirect 2002)
Water outlets of
discharge Indirect
pollutants wastewater
Discharge for
(DW001)
Emission
Limitation of
Ammoniacal Nitrogen and
1 0.18mg/l 0.059t 0.73t/a None
nitrogen Phosphorus for
Industrial
Wastewater
(DB33/887-
2013)
Discharge
Zhejiang
port of
Supor
spraying
Electrical
and drying
exhaust gas
(DA001)
Discharge
port of
Emission
catalytic
Standard of Air
combustion DA001:11.18mg/m;
Pollutants for
exhaust gas DA005:16.64mg/m;
Air Organized Industrial
VOCs 4 (DA005), DA009:13.64 2.732t 3.641t/a* None
pollutants emission Surface
discharge mg/m; DA010:0.73
Coating
port of mg/m
(DB33/2146-
spraying
2018)
exhaust gas
(DA009)
and
discharge
port of the
plastic
workshop
(DA010)
Included Integrated
Wastewater
into urban Wastewater
discharge
pipeline Discharge 69.630000t/
COD port of the66.72mg/L 47.295139t None
Shaoxing Water after Standard a
1 wastewater
Supor pollutants pollutants (GB8978-
station in
are treated 1996)
plant area
Ammoniacal up to Indirect
6.1933mg/L 4.390182t 7.430000t/a None
nitrogen standards Discharge for
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Emission
Limitation of
Nitrogen and
Phosphorus for
Industrial
Wastewater
(DB33/887-
2013)
Wastewater
Quality
Standards for
Total 15.071350t/
10.60mg/L Discharge to13.1136124t None
nitrogen a
Municipal
Sewers (GB/T
31962-2015);
Emission
Standard of
Pollutants for
Total nickel 0mg/L 0t 0.000022t/a None
Electroplating
(GB 21900-
2008)
Intermittent
discharge,
whose flow Integrated
rate is Wastewater
neither Discharge
COD 13.87mg/L 6.538t 19.38t/a None
stable nor Standard
regular, but (GB8978-
Wastewater
it's not an 1996)
discharge
impulsive
Water port of the
discharge
pollutants wastewater
Intermittent
station in
discharge,
plant area Wastewater
Wuhan Supor whose flow 1
Quality
Cookware rate is
Standards for
Ammoniacal neither
0.47mg/L Discharge to0.2145t 1.94t/a None
nitrogen stable nor
Municipal
regular, but
Sewers (GB/T
it's not an
31962-2015);
impulsive
discharge
Integrated
Spray
Emission
exhaust gas
Air Organized Standard of Air
VOCs treatment 8.57mg/m3 3.621t 12.16t/a None
pollutants emission Pollutants
discharge
(GB16297-
port
1996)
Note: According to the "Planning Environmental Assessment+Environmental Standards" inventory management reform pilot construction project environmental
impact assessment document commitment record acceptance letter "(Hang Huan Binbei (2022) No. 56), Zhejiang household Appliance company annual VOCs
allowable emissions of 3.641t/a.
Treatment of pollutants
Under special sewage treatment mechanism in the Company, all wastewater generated will gather at this station for central treatment. After
chemical precipitation and autocatalyzed oxidation, wastewater will meet the first grade discharge standards and then be discharged into urban
wastewater pipes. At the same time, the Company has reclaimed water reuse facilities that can arrange water treatment plan according to water
quality. The production wastewater is first treated at the sewage treatment station and then disposed through the reclaimed water system for
production. After that, part of the sanitary sewage after combined treatment enters municipal sewage network.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
The Company collected different exhaust gases and used different treatment modes, and then discharged after reaching the standard. The
treatment processes involved are as follows: water curtain, spray tower, dry filter, low-temperature plasma, cyclone and filter dust collector,
activated carbon adsorption, UV photolysis purification, desorption and catalytic combustion and other combined treatments.
The Company has established a reliable wastewater and exhaust gas treatment system, and ensures that the discharge and disposal of three
wastes generated in the process of production and operation comply with relevant laws and regulations through regular inspection, supervision
and inspection mechanism and third-party inspection organizations. During the reporting period, if the Company does not exceed the standard
discharge, it will meet the relevant requirements of the competent department for ecological environment.
Environmental monitoring scheme
The Company has formulated an annual environmental monitoring scheme in accordance with relevant national laws and regulations, and
entrusted a qualified third party to carry out environmental monitoring.
Environmental emergency plan
The Company has completed the emergency plan for environmental emergencies and conducted regular emergency drills.
Environmental governance and protection input and payment of environmental protection tax
During the reporting period, the Company's total investment in environmental governance and protection was RMB 21,419,500, including
RMB 60,400 of environmental protection tax.
Measures and effects taken to reduce carbon emissions during the reporting period
□ Applicable Not applicable
Administrative penalties for environmental problems during the reporting period
None
Other environmental information that shall be made public
None
Other environmental protection related information
None
II. Social Responsibilities
For details, please refer to the 2022 Environmental, Social and Governance Report released by the Company.
III. Consolidate and Expand the Achievement of Poverty Alleviation and the Implementation of Rural
Revitalization
During the reporting period, the Company actively supported the national policy of rural revitalization and common prosperity, proposed the
new public welfare proposition of "sharing a better life with each child" according to the new vision and mission of the Company, and gave full
play to its advantages in industry and resource, complied with the 2022 Labor Curriculum Standards of Compulsory Education issued by the
Ministry of Education. The Company supported urban and rural schools to promote literacy education, supported rural primary schools to further
develop into "schools suitable for the life of rural children". We cooperated with families and schools to jointly cultivate children of the new era
who are future-oriented, love life and care for family.
In 2022, the Company continued to operate the "Supor Primary School" project and invested more in the life function of the rural school. The
Supor Primary School in Yuanzhuang, Junxian, Henan Province, for which the Company donated RMB 2 million to support post-disaster
reconstruction, was put into use in September 2022. The new school is equipped with more spacious classrooms and function rooms, dormitories
and canteens, which can meet the needs of more than 300 rural students in study and life. Moreover, the Supor Primary School in Delong, Honghe
County, Yunnan Province, which was completed in 2021, was put into use in September 2022. The school not only has classrooms, dormitories
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2022 Annual Report of Zhejiang Supor Co., Ltd.
and canteens, but also has a new football field for teachers and students to do physical exercise. The Company has donated desks, bed frames,
canteen equipment and dining tables to the newly built school, and teachers and students can start learning and living better.
At present, there are 28 rural schools donated by Supor in central and western China. Wherein, 14 Supor primary schools have introduced
online live-streaming art and foreign language courses of U-Lai public welfare, so that rural students can also enjoy top-quality education.
Moreover, the Company also engaged in public welfare through its own products. Through the online art classes, the Company invited rural
children to participate in the design of children's cups, carefully printed their pictures on the product packaging, and presented them as gifts to
more than 3,000 rural children in 17 Supor primary schools in rural areas on Children's Day.
To comply with the requirements of the labor education in primary and secondary schools issued by Ministry of Education, the Company
launched a new public welfare project "Supor - Future Elegant Living" in 2022, giving full play to its industrial advantages to support the
improvement of urban and rural school literacy education. At present, the Company has established cooperative relations with urban schools such
as Hangzhou Wentao Primary School, Chunhui Primary School, Qianjiang Foreign Language Experimental School, Primary Section of Tianyuan
College, Shaoxing Keling Primary School to support these schools in building life education space, carrying out labor classes, and building schools
featuring life literacy education. The Company also donated products to support 10 rural boarding schools in Jinyun County, Lishui City to carry
out campus life festival, and supported two of them, Changkeng Primary School and Heyang Primary School, to build life education space.
Supor employees also took an active part in public welfare. They participated in board listing and tree-planting activities of "Huakailing -
Supor Staff Public Welfare Practice Base", participated in the campus life festival in Jinyun rural boarding schools, and sent letters and gifts to the
children in the disaster areas in Henan Province to give them warmth and encouragement.
With the promotion of rural revitalization strategy, in the future, the Company will strictly observe the national policies and give full play to
the advantages of Supor's business capabilities and resources on the public platform of Supor, actively promote various charity programs and
activities in terms of literacy education for children in rural villages and broadening their horizons, and work with more like-minded charity
partners to contribute to a better life and better society in rural areas.
Indicator Measurement unit Quantity/fulfillment
Rural revitalization and common prosperity -- ——
Including: Investment amounts for funding poor students RMB 10,000
Number of benefited rural students Person 6,600
Amount invested to improve the education resources in RMB 10,000 293
rural areas
Awards received (content, grade) -- ——
Outstanding Social Responsibility Report Award of the
Fifth Social Responsibility Conference
54
2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION VI SIGNIFICANT EVENTS
I. Fulfillment of Commitments
1. Commitments that were fulfilled during the reporting period and had not been fulfilled till the end of reporting
period by actual controller, shareholder, related party, acquirer and other commitment parties of the Company
□ Applicable Not applicable
There were no commitments that were fulfilled during the reporting period and had not been fulfilled till the end of reporting period by actual
controller, shareholder, related party, acquirer and other commitment parties of the Company
2. Where assets or projects of the Company are expected to make profit, and the expected profiting period is during
the reporting period, the Company hereby explains p
□ Applicable Not applicable
II. Occupied Non-business Capital of Listed Company for Controlling Shareholders and Related Parties
□ Applicable Not applicable
There was no non-operating occupation of capital of listed companies by controlling shareholders and their related parties of the Company during
the reporting period.
III. Illegal External Guarantee
□ Applicable Not applicable
There was no illegal external guarantee of the Company during the reporting period.
IV. Explanation on the Board of Directors on the Latest "Non-standard Audit Report"
□ Applicable Not applicable
V. Explanation on the Board of Directors, the Board of Supervisors and Independent Directors (If Any)
on the "Non-standard Audit Report" during the Reporting Period
□ Applicable Not applicable
VI. Representation of Changes in Accounting Policies and Accounting Estimates or Correction of
Important Accounting Errors, Compared with the Financial Statements of the Previous Year
□ Applicable Not applicable
During the reporting period, there was no change in accounting policies, accounting estimates or correction of important accounting errors.
VII. Information on Change of the Scope of Consolidated Statement Compared with the Previous Year's
Financial Statements
□ Applicable Not applicable
There was no change in the scope of consolidated statements during the reporting period.
55
2022 Annual Report of Zhejiang Supor Co., Ltd.
VIII. Employment and Disengagement of Certified Public Accountants
Certified public accountants engaged at the moment
Name of the Chinese Certified Public Accountants KPMG Huazhen LLP (Special General Partnership)
Reward for domestic certified public accountants (RMB 10,000) 250.00
Service years of audit for the Company 2
Names of CPAs from domestic certified public accountants Huang Feng, Jin Yang
Service years of audit of the CPAs Huang Feng (two years), Jin Yang (two years)
Intension of changing certified public accountants
□ Yes No
Employment of internal control counting firm, financial consultant or sponsor
Applicable □ Not applicable
Same accounting firm for internal control audit
IX. Delisting after Disclosure of Annual Report
□ Applicable Not applicable
X. Bankruptcy or Reorganization
□ Applicable Not applicable
There was no bankruptcy, reorganization or related matters in the Company during the reporting period.
XI. Important Matters of Lawsuit and Arbitration
□ Applicable Not applicable
There was no significant litigation and arbitration occurred during the reporting period.
XII. Punishment and Rectification
□ Applicable Not applicable
There was no punishment and rectification during the reporting period.
XIII. Integrity of the Company, Its Controlling Shareholders and Actual Controllers
□ Applicable Not applicable
XIV. Major Related Transactions
1. Related transaction related to daily business
Applicable □ Not applicable
Amount of Market
Pricing Percentage Approved Means of
Type of Contents of Price of related Exceeding price of Reference
Correlated principle to amount transaction payments Date of
Related party related related related transaction approved available for
relation of related of same limit (RMB of related disclosure
transaction transaction transaction (RMB limit or not same disclosure
transaction transaction 10,000) transaction
10,000) transaction
56
2022 Annual Report of Zhejiang Supor Co., Ltd.
Bank
Wuhan Anzai Associated Purchase ofFinished Contract
- 6,117.83 0.49% No transfer or0
Cookware Co., Ltd. enterprise commodity products price
notes
Bank
Wuhan Anzai Associated Purchase of Market
Accessories - 15,087.43 1.21% No transfer or0
Cookware Co., Ltd. enterprise commodity price
notes
Same
controlling
Bank
GROUPE SEBshareholderPurchase ofFinished Contract
- 706.38 0.06% No transfer or0
EXPORT with thecommodity products price
notes
controlling
shareholder
Same
controlling
Bank
GROUPE SEBshareholderPurchase of Market
Accessories - 7.38 0.00% No transfer or0
EXPORT with thecommodity price
notes
controlling
shareholder
Same
controlling
Bank
GROUPE SEBshareholderPurchase of Market
Accessories - 325.53 0.03% No transfer or0
MOULINEX with thecommodity price
notes
controlling
shareholder
Same Bank
LAGOSTINA Purchase ofFinished Contract
controlling - 219.49 0.02% No transfer or0
S.P.A. commodity products price
shareholder notes
Same
controlling
Bank
shareholderPurchase of Market
TEFAL S.A.S. Accessories - 766.00 0.06% No transfer or0
with thecommodity price
notes
controlling
shareholder
Same Bank
GROUPE SEB Purchase ofFinished Contract
controlling - 44.51 0.00% No transfer or0
THAILAND commodity products price
shareholder notes
Same Bank
Purchase ofFinished Contract
SEB ASIA LTD. controlling - 46.23 0.00% No transfer or0
commodity products price
shareholder notes
Same Bank
Heshan Demei Purchase ofFinished Contract
controlling - 31.27 0.00% No transfer or0
Tableware Co., Ltd. commodity products price
shareholder notes
Same Bank
WMF GROUPE Purchase ofFinished Contract
controlling - 2,642.33 0.21% No transfer or0
GMBH commodity products price
shareholder notes
Same Bank
Emsa Taicang Co., Purchase ofFinished Contract
controlling - 23.50 0.00% No transfer or0
Ltd. commodity products price
shareholder notes
WMF ConsumerSame Bank
Purchase ofFinished Contract
Goods (Shanghai)controlling - 3.77 0.00% No transfer or0
commodity products price
Co, Ltd. shareholder notes
Same
controlling
SEB Bank
shareholderPurchase ofFinished Contract
INTERNATIONAL - 2.93 0.00% No transfer or0
with thecommodity products price
SERVICE S.A.S. notes
controlling
shareholder
Same
controlling
SEB Bank
shareholderPurchase of Market
INTERNATIONAL Accessories - 61.28 0.00% No transfer or0
with thecommodity price
SERVICE S.A.S. notes
controlling
shareholder
Same
controlling
Bank
shareholderPurchase of Market
ETHERA Accessories - 31.79 0.00% No transfer or0
with thecommodity price
notes
controlling
shareholder
Company
controlled Bank
Purchase ofFinished Market
Supor Group by related - 1.61 0.00% No transfer or0
commodity products price
natural notes
person
Same Bank
Sale ofFinished Contract
SEB ASIA LTD. controlling - 453,503.55 22.48% No transfer or0
commoditiesproducts price
shareholder notes
Same Bank
Sale of Contract
SEB ASIA LTD. controlling Accessories - 316.34 0.02% No transfer or0
commodities price
shareholder notes
Same Bank
Sale ofFinished Contract
S.A.S. SEB controlling - 1,369.02 0.07% No transfer or0
commoditiesproducts price
shareholder notes
57
2022 Annual Report of Zhejiang Supor Co., Ltd.
with the
controlling
shareholder
Same
controlling
Bank
shareholderSale of Contract
S.A.S. SEB Accessories - 67.34 0.00% No transfer or0
with thecommodities price
notes
controlling
shareholder
Same
controlling
Bank
shareholderSale ofFinished Contract
TEFAL S.A.S. - 706.99 0.04% No transfer or0
with thecommoditiesproducts price
notes
controlling
shareholder
Same
controlling
Bank
shareholderSale of Contract
TEFAL S.A.S. Accessories - 1,366.65 0.07% No transfer or0
with thecommodities price
notes
controlling
shareholder
Same
controlling
Bank
GROUPE SEBshareholderSale ofFinished Contract
- 1,852.51 0.09% No transfer or0
MOULINEX with thecommoditiesproducts price
notes
controlling
shareholder
Company
controlled Bank
Sale ofFinished Market
Supor Group by related - 442.42 0.02% No transfer or0
commoditiesproducts price
natural notes
person
Same
controlling
SEB Bank
shareholderSale of Contract
INTERNATIONAL Accessories - 1,648.49 0.08% No transfer or0
with thecommodities price
SERVICE S.A.S. notes
controlling
shareholder
Same Bank
LAGOSTINA Sale ofFinished Contract
controlling - 4.93 0.00% No transfer or0
S.P.A. commoditiesproducts price
shareholder notes
Same Bank
LAGOSTINA Sale of Contract
controlling Accessories - 123.36 0.01% No transfer or0
S.P.A. commodities price
shareholder notes
Same Bank
GROUPE SEB Sale ofFinished Contract
controlling - 1,416.43 0.07% No transfer or0
CANADA commoditiesproducts price
shareholder notes
Same Bank
Sale ofFinished Contract
IMUSA USA LLC controlling - 1,628.53 0.08% No transfer or0
commoditiesproducts price
shareholder notes
Same Bank
Sale of Contract
IMUSA USA LLC controlling Accessories - 3.32 0.00% No transfer or0
commodities price
shareholder notes
WMF ConsumerSame Bank
Sale ofFinished Contract
Goods (Shanghai)controlling - 35.11 0.00% No transfer or0
commoditiesproducts price
Co, Ltd. shareholder notes
GROUPE SEB
Same Bank
VIETNAM JOINT Sale ofFinished Contract
controlling - 2,448.11 0.12% No transfer or0
STOCK commoditiesproducts price
shareholder notes
COMPANY
GROUPE SEB
Same Bank
VIETNAM JOINT Sale of Contract
controlling Accessories - 1.12 0.00% No transfer or0
STOCK commodities price
shareholder notes
COMPANY
Same Bank
GROUPE SEB Sale of Contract
controlling Accessories - 351.35 0.02% No transfer or0
ANDEAN S.A. commodities price
shareholder notes
Bank
Wuhan Anzai Associated Sale of Contract
Accessories - 4.22 0.00% No transfer or0
Cookware Co., Ltd. enterprise commodities price
notes
Total -- -- 493,409.05 -- -- -- -- -- -- --
Details of large sales return Not applicable
In 2022, the annual daily related transaction amount between the Company and SEB as well as its related parties was
Actual implementation of estimated total amount of
estimated to be RMB 7,654,288,862.22 and the actual daily related transaction amount was RMB 4,717,555,418.48,
related transaction by category incurred during the
decreasing by RMB 2,936,733,443.74. (References can be made to No.2022-014 Announcement on Estimated
period in the reporting period (if any)
Annual Daily Related Transactions of 2022 disclosed on http://www.cninfo.com.cn on April 1, 2022.
Reason for the big difference between transacted price
Not applicable
and market reference price (if applicable)
58
2022 Annual Report of Zhejiang Supor Co., Ltd.
2. Related transactions from purchase and sales for assets or equity
□ Applicable Not applicable
There were no related transactions from purchase and sales for assets or equity during the reporting period.
3. Related transaction for co-investment abroad
□ Applicable Not applicable
There was no related transaction involving joint external investment during the reporting period.
4. Connected creditor's rights and debts
□ Applicable Not applicable
There were no related creditor's rights and debts during the reporting period
5. Dealings with associated financial companies
□ Applicable Not applicable
There was no deposit, loan, credit or other financial business between the Company and associated financial companies and their related parties.
6. Dealings between the financial companies controlled by the Company and their related parties
□ Applicable Not applicable
There was no deposit, loan, credit or other financial business between the Company and holding financial companies and their related parties.
7. Other important Related transactions
□ Applicable Not applicable
There were no significant related transactions during the reporting period.
XV. Significant Contracts and Performance
1. Custody, contracting, and leasing
(1) Custody
□ Applicable Not applicable
No custody was made during the reporting period.
(2) Contracting
□ Applicable Not applicable
No contracting was made during the reporting period.
(3) Leasing
Applicable □ Not applicable
Circumstances of leasing
59
2022 Annual Report of Zhejiang Supor Co., Ltd.
Please refer to 15 "Right-of-use assets" and 26 "lease obligation" in section X "FINANCIAL STATEMENT" VII "Notes to items of consolidated
financial statements".
The profit and loss brought to the company reaches more than 10% of the total profit of the company during the reporting period.
□ Applicable Not applicable
During the reporting period, there are no leasing items that bring profits and losses of the Company to more than 10% of the total profits of the
Company during the reporting period.
2. Major guarantee
Applicable □ Not applicable
Unit: RMB 10,000
External guarantee of the Company and its subsidiaries (excluding the guarantee to subsidiaries)
Disclosure date
of Whether it is
Name of Actual Actual Counter-
announcement Guaranteed Guarantee Collateral (if Guarantee Fulfilled or guaranteed
guaranteed occurring guaranteed guarantee (if
related to the amount type any) period not by related
object date amount any)
guaranteed parties
amount
Supor's
distributors July 2021-
January 22, General July 2021 -
who meet 80,000.00 December 38,324.72 Cash Yes Yes No
2021 guarantee June 2022
certain 2021
conditions
Supor's
January
distributors January
December 14, General 2022 -
who meet 140,000.00 2022-June 32,108.55 Cash Yes Yes No
2021 guarantee December
certain 2022
2022
conditions
Supor's
distributors July 2022- July 2022 -
December 14, General
who meet 140,000.00 August 12,638.78 Cash Yes February No No
2021 guarantee
certain 2022 2023
conditions
Supor's
September
distributors September
August 31, 2022- General
who meet 140,000.00 26,907.20 Cash Yes 2022 - June No No
2022 December guarantee
certain 2023
2022
conditions
Total external guaranteed Total actual amount of
amount approved during the 140,000.00 external guarantee during 109,979.24
reporting period (A1) the reporting period (A2)
Total actual external
Total external guaranteed
guarantee balance at the
amount approved at the end 220,000.00 30,174.38
end of the reporting
of the reporting period (A3)
period (A4)
Guarantee of the Company to subsidiaries
Disclosure date
of Whether it is
Name of Actual Actual Counter-
announcement Guaranteed Guarantee Collateral (if Guarantee Fulfilled or guaranteed
guaranteed occurring guaranteed guarantee (if
related to the amount type any) period not by related
object date amount any)
guaranteed parties
amount
Zhejiang
Shaoxing
July 2021- July 2021 -
Supor General
April 1, 2021 200,000.00 August 26,600.00 None None February Yes No
Household guarantee
2021 2022
Products Co.,
Ltd.
Zhejiang
Shaoxing January January
Supor 2022- General 2022 -
April 1, 2021 200,000.00 24,081.50 None None Yes No
Household April guarantee October
Products Co., 2022 2022
Ltd.
60
2022 Annual Report of Zhejiang Supor Co., Ltd.
Zhejiang
Shaoxing
May May 2022 -
Supor General
April 1, 2022 270,000.00 2022-June 41,570.00 None None December Yes No
Household guarantee
2022 2022
Products Co.,
Ltd.
Zhejiang
Shaoxing
July 2022-
Supor General July 2022 -
April 1, 2022 270,000.00 December 67,550.55 None None No No
Household guarantee June 2023
2022
Products Co.,
Ltd.
September
Wuhan Supor September
2022- General
Cookware April 1, 2022 20,000.00 3,315.00 None None 2022 - June No No
December guarantee
Co., Ltd. 2023
2022
Approved total guaranteed Total actual amount of
amount towards the guarantee to subsidiaries
400,000.00 163,117.05
subsidiaries during the during the reporting
reporting period (B1) period (B2)
Total guaranteed amounts to Total actual guarantee
subsidiaries approved at the balance for subsidiaries
600,000.00 70,865.55
end of the reporting period at the end of the reporting
(B3) period (B4)
Guarantee of the subsidiaries to subsidiaries
Disclosure date
Name of of Actual Counter- Whether it is
Actual
announcement Guaranteed Guarantee Collateral Guarantee Fulfilled or guaranteed
guaranteed related to the amount
occurring guaranteed guarantee by related
date type (if any) period not
object guaranteed amount (if any) parties
amount
Zhejiang
Shaoxing
July 2021-
Supor General July 2021 -
April 1, 2021 200,000.00 October 8,417.50 None None Yes No
Household guarantee April 2022
2021
Products Co.,
Ltd.
Zhejiang
Shaoxing
January
Supor January General
April 1, 2021 200,000.00 33,667.00 None None 2022 - July Yes No
Household 2022 guarantee
2022
Products Co.,
Ltd.
Zhejiang
Shaoxing
June 2022 -
Supor General
April 1, 2022 270,000.00 June 2022 5,323.50 None None December Yes No
Household guarantee
2022
Products Co.,
Ltd.
Zhejiang
Shaoxing
July 2022-
Supor General July 2022 -
April 1, 2022 270,000.00 December 11,900.00 None None No No
Household guarantee June 2023
2022
Products Co.,
Ltd.
Approved total guaranteed Total actual amount of
amount towards the guarantee to subsidiaries
0 59,308.00
subsidiaries during the during the reporting
reporting period (C1) period (C2)
Total guaranteed amounts to Total actual guarantee
subsidiaries approved at the balance for subsidiaries
0 11,900.00
end of the reporting period at the end of the reporting
(C3) period (C4)
Total guaranteed amount of the Company (namely the total of the first three items)
Total guaranteed actual
Total approved guaranteed
amount during the
amount during the reporting 540,000.00 332,404.29
reporting period
period (A1+B1+C1)
(A2+B2+C2)
Total approved guaranteed Total actual guarantee
820,000.00 112,939.93
amount at the end of the balance at the end of the
61
2022 Annual Report of Zhejiang Supor Co., Ltd.
reporting period reporting period
(A3+B3+C3) (A4+B4+C4)
Proportion of the total amount of actual guarantee (i.e. A4+B4+C4) to
16.05%
the net assets of the Company
Including:
Total guaranteed amount towards shareholders,
0
actual controllers and related parties (D)
Balance of debt guarantee directly or indirectly
provided to the guaranteed object with an asset- 87,315.97
liability ratio exceeding 70% (E)
Amount of the total guarantee exceeding 50% of the
0
net assets (F)
Total amount of the above three guarantees (D+E+F) 87,315.97
Description of the guarantee liability occurred during
the reporting period or there is evidence that it is
possible to bear joint and several liability for None
settlement for the unexpired guarantee contract (if
any)
Descriptions for external guarantee provided against
None
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 of the Company
reviewed and adopted the Proposal on Guarantee for Wholly-owned Subsidiaries and Mutual Guarantee among Wholly-owned Subsidiaries, and
agreed that the Company and its wholly-owned subsidiaries would provide guarantees up to RMB 4 billion for the wholly-owned subsidiaries in
the year of 2022. Among them, the guaranteed amount for companies with 70% (inclusive) asset-liability ratio or over is RMB 3 billion, and RMB
1 billion for companies with a asset-liability ratio below 70%.
Specific description for using the composite guarantee situation
3. Entrusting others for cash asset management
(1) Entrustment for financial management
Applicable □ Not applicable
Overview of entrusted financing during the reporting period
Unit: RMB 10,000
The amount of
Source of fund for Amount incurred of Overdue amount impairment accrued
Specific type Undue balance
entrusted financing entrusted financing unclaimed from overdue financial
investment products
Bank financial
Self-owned capital 43,000.00 43,000.00 0 0
products
Total
43,000.00 43,000.00 0 0
The short-term financial products purchased by the Company in 2022 can be found in the Announcement of Short-term Investment Using Excessive
Cash (Announcement No.2022-015 and 2022-048) and the Announcement of Progress of Using Excessive Cash to Purchase Financial Products
(Announcement No.2022-024, 2022-041 and 2023-006) on http://www.cninfo.com.cn.
Specific situation of high-risk entrusted finance with significant single amount, low security and poor liquidity
□ Applicable Not applicable
Circumstances in which principal of entrusted financing may not be recovered or which may result in decrease in value:
□ Applicable Not applicable
(2) Entrustment for loan
□ Applicable Not applicable
62
2022 Annual Report of Zhejiang Supor Co., Ltd.
No entrustment for loan was made during the reporting period.
4. Other significant contracts
□ Applicable Not applicable
There were no other significant contracts involved in the Company during the reporting period.
XVI. Explanation on Other Important Matters
□ Applicable Not applicable
The Company has no other important matters to be explained during the reporting period.
XVII. Important Matters of Subsidiaries
□ Applicable Not applicable
63
2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS
ABOUT SHAREHOLDERS
I. Changes of shares
1. Changes of shares
Unit: share
Before change Increase/decrease in the period (+, -) After change
Share New Shares Converted
Proportion Others Subtotal Share number Proportion
number shares bonus capital
I. Restricted shares 848,564 0.10% 2,261,509 2,261,509 3,110,073 0.38%
1. Shares held by the state 0 0.00% 0 0 0 0.00%
2. Stated-owned legal
0 0.00% 0 0 0 0.00%
person shares
3. Other domestic
848,564 0.10% 2,261,509 2,261,509 3,110,073 0.38%
shareholdings
Including: Shares held
0 0.00% 0 0 0 0.00%
by domestic legal entities
Shares held by domestic
848,564 0.10% 2,261,509 2,261,509 3,110,073 0.38%
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 Shares 807,829,912 99.90% -2,285,509 -2,285,509 805,544,403 99.62%
1. Common shares in
807,829,912 99.90% -2,285,509 -2,285,509 805,544,403 99.62%
RMB
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 the change of shares
Applicable □ Not applicable
1. Top management of the Company unlocked 25% of the shares registered under their names on the last transaction date of the previous year.
2. As of the Company's 2021 Restricted Stock Incentive Plan, 1,209,500 shares of restricted stocks were transferred to 293 incentive objects on
January 27, 2022.
3. On June 29, 2022, totally 24,000 shares of restricted stock that have been granted to resigned incentive objects but have not been 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.
64
2022 Annual Report of Zhejiang Supor Co., Ltd.
4. As of the Company's 2022 Restricted Stock Incentive Plan, 1,253,500 shares of restricted stocks were transferred to 288 incentive objects on
November 10, 2022. In addition, a total of 79,000 restricted shares of the posponed portion of the 2022 Restricted Stock Incentive Plan were
transferred to two incentive objects on February 24, 2023.
Approval of change in stock
Applicable □ Not applicable
1. The Company held the 11th Session of the Seventh Board of Directors and the 10th Session of the Seventh Board of Supervisors on January 6,
2022, which deliberated and approved the Proposal on Grant of Restricted Stock to Incentive Objects, and agreed to grant 1,209,500 restricted
shares to 293 incentive objects on January 6, 2022. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited, the restricted stocks of the Company's 2021 Restricted Stock Incentive Plan were transferred and registered to 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 deliberated
and approved 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 RMB 1 per share. The Proposal
on Repurchasing and Canceling a Part of Restricted Stock has been adopted by 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 RMB 1 per share and paid
totally RMB 24,000 to the above incentive objects. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited, the Company completed repurchase and cancellation on June 29, 2022.
3. On August 30, 2022, the 14th Session of the Seventh Board of Directors and the 13th Session of the Seventh Board of Supervisors deliberated
and approved Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of thirteen incentive objects due to their
resignation, the Company has decided to repurchase and cancel 53,000 shares of Restricted Stock at the price of RMB 1 per share. The cancellation
of repurchase can only be implemented after the deliberation and approval by the General Meeting of Shareholders in the Company.
4. The Company held the 15th Session of the Seventh Board of Directors and the 14th Session of the Seventh Board of Supervisors on October 12,
2022, which deliberated and approved the Proposal on Grant of Restricted Stock to Incentive Objects, and agreed to grant 1,253,500 restricted
shares to 288 incentive objects on October 12, 2022. At the same time, the Company postponed the grant of 79,000 shares to two incentive objects.
On January 31, 2023, the 18th Session of the Seventh Board of Directors and the 17th Session of the Seventh Board of Supervisors held, which
deliberated and approved the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects. The grant date of the postponed
portion was February 1, 2023. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the
restricted stocks of the Company's 2022 Restricted Stock Incentive Plan was transferred to 288 incentive objects on November 10, 2022, and the
postponed portion was transferred to 2 incentive objects on February 24, 2023.
Transfer of shares changed
Applicable □ Not applicable
1. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, 1,209,500 restricted stocks of the
Company's 2021 Restricted Stock Incentive Plan were transferred and registered to 293 incentive objects on January 27, 2022.
2. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, 1,253,500 restricted stocks of the
Company's 2022 Restricted Stock Incentive Plan was transferred to 288 incentive objects on November 10, 2022, and the suspended grant part
was transferred to 2 incentive objects on February 24, 2023.
Influence of shares change on basic earnings per share and diluted earnings per share in latest year and period, net assets per share owned by the
Company's ordinary shareholder and other financial indexes.
Applicable □ Not applicable
Since tiny influence on basic earnings per share and diluted earnings per share, the 24,000 restricted stocks repurchased and cancelled in this
period generate no effect on other financial indicators (e.g net assets per share belonging to the Company's common stockholder).
The other contents the company thinks fit to disclose or the securities regulatory authority requires to disclose
□ Applicable Not applicable
65
2022 Annual Report of Zhejiang Supor Co., Ltd.
2. Changes of restricted shares
Applicable □ Not applicable
Unit: share
Restricted Restricted
Restricted
outstanding outstanding Restricted
outstanding
stocks stocks outstanding
Name stocks at the Restriction reason Date of unlocking restriction
increased in released in stocks at the
beginning of
current current end of the year
the year
period period
Unlocked 25% of the shares registered under their
Locked stocks of top
Su Xianze 486,136 0 121,534 364,602 names on the last transaction date of the previous
management
year.
Unlocked 25% of the shares registered under their
Locked stocks of top
Xu Bo 173,737 43,434 130,303 names on the last transaction date of the previous
management
year.
Top management of the Company unlocked 25%
Locked stocks of top
Ye Jide 52,191 13,048 39,143 of the shares registered under their names on the
management
last transaction date of the previous year.
Executive lock-up Before November 19, 2023, 25% of the total shares
Su Ming-Jui 136,500 750 225 137,025 stocks (unlock after can be lifted each year, and all shares held will be
departure) lifted after November 19, 2023.
As of the Company's 2021 Restricted Stock
24,000 shares of Incentive Plan, 1,209,500 shares of restricted
restricted stocks stocks were transferred to 293 incentive objects on
Incentive
were repurchased January 27, 2022. The above restricted stocks will
objects of 2021
0 1,209,500 24,000 1,185,500 and cancelled in be unlocked in two phases after 24 months from
Equity
consideration that the grant date, with the unlocking proportion of
Incentive Plan
parts of resigned each phase being 50%. The first phase is expected
incentive objects. to start on January 27, 2024. The second phase is
expected to start on January 27, 2025.
As of the Company's 2022 Restricted Stock
Incentive Plan, 1,253,500 shares of restricted
stocks were transferred to 288 incentive objects on
Incentive November 10, 2022. The above restricted stocks
objects of 2022 Equity incentive will be unlocked in two phases after 24 months
0 1,253,500 0 1,253,500
Equity restricted shares from the grant date, with the unlocking proportion
Incentive Plan of each phase being 50%. The first phase is
expected to start on November 10, 2024. The
second phase is expected to start on November 10,
2025.
Total 848,564 2,463,750 202,241 3,110,073 -- --
II. Security Offering and Listing Information
1. Security offering (excluding preferred share) during the reporting period
□ Applicable Not applicable
2. Total shares of the Company, change of shareholder structure, and changes of the Company's assets and liabilities
structure
Applicable □ Not applicable
During the reporting period, totally 24,000 shares of restricted stock that have been granted to resigned incentive objects but have not been
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.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
3. Staff shares
□ Applicable Not applicable
III. Shareholders and the Actual Controller
1. Number of shareholders of the Company and share-holding conditions
Unit: share
Total number of Total number of
Number of
preferred preferred
common
Total number of shareholder shareholders with
shareholders at
common whose voting restored voting right
the end of last
shareholders at the 14,971 12,838 right is recovered 0 at the end of last 0
month before
end of the reporting at the end of month before the
the disclosure
period reporting period disclosure date of the
date of the
(if any) (refer to annual report (if any)
annual report
Note 8) (see Note 8)
Information on shareholders holding more than 5% shares or information on top 10 shareholders
Pledge, marking or
Number of freezing
shares held at Increase/decrease Number of Number of
Shareholding
Status of
Name Nature the end of the during the restricted non-restricted
ratio
share
reporting reporting period shares shares Share number
period
SEB
Foreign legal
INTERNATIONALE 82.44% 666,681,904 0 0 666,681,904
entity
S.A.S
Hong Kong
Foreign legal
Securities Clearing 9.09% 73,481,463 9,013,079 0 73,481,463
entity
Company Ltd.
Ningbo Bank-
Zhongtai Xingyuan
Value-selected
Others 1.19% 9,601,559 9,026,907 0 9,601,559
Flexible Complex
Securities Investment
Funds
Fidelity Mutual Fund
& Investment Foreign legal
0.42% 3,357,132 -437,590 0 3,357,132
Management - entity
Clients' Capital
China Merchants
Bank-Zhongtai
Yuheng Value-
Others 0.37% 2,970,113 2,670,413 0 2,970,113
selected Flexible
Complex Securities
Investment Funds
Industrial Bank-
Xingquan Trend
Investment Complex Others 0.27% 2,199,856 2,199,856 0 2,199,856
Securities Investment
Funds
BNP Paribas-Own Foreign legal
0.27% 2,149,370 -2,392,611 0 2,149,370
Funds entity
Industrial Bank-
Zhongtai Xingwei
Value-selected Others 0.24% 1,903,427 1,903,427 0 1,903,427
Complex Securities
Investment Funds
BARCLAYS BANK Foreign legal
0.17% 1,371,200 1,273,928 0 1,371,200
PLC entity
Yongan Guofu Asset
Management- Others 0.11% 874,295 874,295 0 874,295
Yongan Guofu-
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Yongfu No. 19
Complex Investment
Privite Funds
Strategic investor or general
corporate investor who becomes top
None
10 shareholder as a result of rights
issue (if any) (see Note 3)
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds, China
Explanation on the above- Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds and
mentioned shareholder relationships Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities Investment Funds belong to Zhongtai
or concerted actions Fund. It is unknown whether other shareholders are associated with each other, and whether they are persons
acting in concert as stipulated in the Measures for the Administration of the Acquisition of Listed Companies.
Explanation on the above
shareholders on entrusting/entrusted
None
voting rights and abstaining from
voting rights
Special instructions on the existence
of repurchase special accounts of the At the end of the reporting period, the Company held a total of 2,071,569 shares in the Company’s special
top 10 shareholders (if any) (see stock repurchase account
Note 10)
Shareholdings of top 10 shareholders holding non-restricted shares
Number of non-restricted outstanding Type of share
Name shares held at the end of the reporting
period Type of share Share number
SEB INTERNATIONALE S.A.S 666,681,904 RMB common shares 666,681,904
Hong Kong Securities Clearing Company Ltd. 73,481,463 RMB common shares 73,481,463
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible
9,601,559 RMB common shares 9,601,559
Complex Securities Investment Funds
Fidelity Mutual Fund & Investment Management - Clients'
3,357,132 RMB common shares 3,357,132
Capital
China Merchants Bank-Zhongtai Yuheng Value-selected
2,970,113 RMB common shares 2,970,113
Flexible Complex Securities Investment Funds
Industrial Bank-Xingquan Trend Investment Complex
2,199,856 RMB common shares 2,199,856
Securities Investment Funds
BNP Paribas-Own Funds 2,149,370 RMB common shares 2,149,370
Industrial Bank-Zhongtai Xingwei Value-selected Complex
1,903,427 RMB common shares 1,903,427
Securities Investment Funds
BARCLAYS BANK PLC 1,371,200 RMB common shares 1,371,200
Yongan Guofu Asset Management-Yongan Guofu-Yongfu
874,295 RMB common shares 874,295
No. 19 Complex Investment Privite Funds
Explanation on connected relationship or concerted parties
among the top 10 shareholders holding non-restricted
outstanding shares, and between the top 10 shareholders Same as above
holding non-restricted outstanding shares 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 shares conduct the agreed repurchase transaction
during the reporting period?
□ Yes No
The top 10 common shareholders and the top 10 common shareholders holding non-restricted shares did not conduct the agreed repurchase
transaction during the reporting period.
2. Controlling shareholder
Property of controlling shareholder: foreign-controlled shareholding
Type of controlling shareholder: legal entity
Name of controlling Legal Organization
Date of establishment Main business
shareholder representative/person in code
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2022 Annual Report of Zhejiang Supor Co., Ltd.
charge
Financial participation for all kinds of French and
overseas enterprises, i.e., purchasing and
subscribing stock, bond, share and interests,
securities and negotiable securities, transfer of
such securities, participation in all financial
activities related to the aforesaid financial
SEB INTERNATIONALE Thierry de LA TOUR
December 26, 1978 None participation, purchasing, manufacturing and sales
S.A.S D'ARTAISE
of all kinds of household devices for the purpose
of marketing and involvement in related service;
all activities for helping realize the Company's
operation either directly or indirectly, particularly
the activities in personal estate, real estate, finance,
commerce and industrial field.
Shareholding of other
overseas listed companies by
the Company's controlling None
shareholder during the
reporting period
Change of controlling shareholder during the reporting period
□ Applicable Not applicable
No change of controlling shareholder occurred during the reporting period.
3. Actual controller and persons acting in concert
Nature of actual controller: other foreign organization
Type of actual controller: legal entity
Name of the actual Legal representative/person
Date of establishment Organization code Main business
controller in charge
Holding or equity
Thierry de LA TOUR participation and
SEB S.A. December 28, 1973 None
D'ARTAISE management for various
enterprises
Holding of other overseas
listed companies by the
None
Company's actual controller
during the reporting period
Change of actual controller during the reporting period
□ Applicable Not applicable
No change of actual controller occurred during the reporting period.
Property right and controlling relationship diagram between the Company and the actual controller
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Actual controller controlling the Company by trust or other assets management types
□ Applicable Not applicable
4. The number of shares accumulatively pledged by the controlling shareholder or first majority shareholder of the
Company and its persons acting in concert account for 80% of the total number of shares held by it or them.
□ Applicable Not applicable
5. Other corporate shareholders holding more than 10% shares
□ Applicable Not applicable
6. Share restriction reduction of commitment subjects such as controlling shareholder, actual controller and the
restructuring party
□ Applicable Not applicable
IV. Specific Implementation of Share Repurchase during the Reporting Period
Progress in the implementation of share repurchase
Applicable □ Not applicable
The proportion
of the number of
shares
Number of Proposed Number of
Proportion to Proposed repurchased to
Plan disclosure shares to be amount of Repurchase shares already
total share repurchase the underlying
time repurchased repurchase purpose repurchased
capital period shares involved
(shares) (RMB 10,000) (shares)
in the equity
incentive plan (if
any)
Write-off and
decrease of the
8,086,785 shares registered capital
RMB 44,299.41 - Expired on April
April 1, 2022 - 16,173,570 1%-2% and the 3,325,069 100.00%
RMB 88,598.82 24, 2023
shares implementation
of equity
incentives
Progress in the reduction of shareholding of repurchased shares through auction
□ Applicable Not applicable
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2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION VIII INFORMATION ON PREFERRED SHARE
□ Applicable Not applicable
No preferred share existed during the reporting period.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION IX BONDS
□ Applicable Not applicable
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2022 Annual Report of Zhejiang Supor Co., Ltd.
SECTION X FINANCIAL STATEMENT
I. Audit Report
Type of audit opinion Standard opinions with no reservation
Date of signature of audit report March 29, 2023
Name of audit organization KPMG Huazhen LLP (Special General Partnership)
Audit report document No. KPMG Huazhen Shenzi No. 2303560
Names of CPAs Huang Feng, Jin Yang
Main Text of Audit Report
All shareholders of Zhejiang Supor Co., Ltd.,
I. Audit Opinions
We audited the attached financial statements of Zhejiang Supor Co., Ltd (hereinafter referred to as "Supor"), including the consolidated and
parent company balance sheet as of December 31, 2022, and the consolidated and parent company income statement, consolidated and parent
company cash flow statement, consolidated and parent company statement of changes in shareholders' equities and notes to relevant financial
statements in 2022.
We think that the attached financial statements have been prepared in accordance with the provisions of the Accounting Standards for Business
Enterprises issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as "Accounting Standards for Business
Enterprises") in all major aspects, and fairly reflect Supor's consolidated and parent company financial condition as of December 31, 2022, as well
as the consolidated and parent company operating results and cash flows in 2022.
II. Basis of Forming Audit Opinions
We implemented our audit work strictly according to the stipulations of Auditing Standard for Chinese Certified Public Accountants (hereinafter
referred to as "Auditing Standard"). The content of "Responsibility of CPA for financial statement audit" in the Audit Report further describes our
responsibility under these standards. According to the Codes of Professional Ethics for Certified Public Accountants in China, we are independent
of Supor, and we have fulfilled the other responsibilities on the aspects of professional ethics. We believe the audit evidences acquired by us are
sufficient and appropriate, and provide a basis for expressing our audit opinions.
III. Key Audit Matters
The key audit items are from our professional judgment; from our perspective, the key audit items are most important to the financial statement
audit in the current period. The key audit items will be audited under the background that the financial statement will be wholly audited to form
audit opinions; we do not express independent opinions on these items. We confirm that the following items are key audit items to be discussed in
the audit report.
Revenue recognition
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Please refer to the accounting policies described in Note 26 to "V. Important Accounting Policies and Estimates" and Note 35 to "VII. Notes
to items of consolidated financial statements" (Notes to the financial statements)
Key audit items Countermeasures
Supor and its subsidiaries (hereinafter The audit procedures related to revenue recognition include the following:
referred to as "Supor") are mainly engaged in the Understand and evaluate the design and operation effectiveness of key internal
R&D, production and distribution of kitchen control related to the revenue recognition made by the management;
utensils, stainless steel products, daily hardware, Select sales contracts, check major terms governing the transfer of commodity
small domestic appliances and cookware; its control right, and review if the accounting policies for Supor revenue recognition
is in conformity with the requirements in Accounting Standards for Business
products are cookware and small domestic
Enterprises; Check if there are abnormal trading terms and conditions that indicate
appliances. In 2022, Supor's operating income potential undisclosed relations or transactions with related parties;
reached RMB 20,170,527,516.66, of which Use data analysis tools on Supor's transaction information to identify those with
domestic sales revenue was RMB abnormal revenues and check if there are any potential undisclosed relations or
14,975,644,970.69 and export sales revenue was major transactions with related parties;
RMB 5,194,882,545.97. Select major third-party customers and use enterprise information query tool on
their background information to identify if they have any relation with Supor;
Supor recognizes the revenue when the
control right of relevant commodity is transferred Select transactions of which the revenues are recorded in the year, and refer to
supporting documents such as the orders, invoices, packing lists, receipts of
to the customer. Supor assesses the contract and acceptance, customs clearances for export and bills of lading to check if the
business arrangement of the customer, and recognition of corresponding revenues is done according to Supor accounting
recognizes the commodity sales revenue after policies for revenue recognition;
such commodity has left Supor's own warehouse Based on audit sampling, carry out the external confirmation procedure for the
or its specified warehouse, or such commodity balance of accounts receivable of relevant customers on the balance sheet date
and the amount of sales transactions in the current year;
has been delivered to the customer with the
acceptance receipt issued, or such commodity has
Select transactions of which the revenue is accrued around the balance sheet date,
and refer to supporting documents such as the delivery notices, bills of lading or
been delivered on board to the sea transport receipts of the goods to check if the revenue is included in the right accounting
carrier with the customs declaration for export period;
and bill of lading obtained. Check whether there are sales returns following the balance sheet date, and check
As revenue is a KPI, and Supor has the relevant supporting documents (if any) for significant sales returns, so as to
evaluate whether the revenue is recorded in the appropriate accounting period;
announced the Restricted Stock Incentive Plan and
in 2021 and 2022 with performance appraisal
Select revenue-related entries in the current year that meet specific risk criteria,
target as a premise for lifting the sales limitation, inquire the management about the reasons for making these entries, and review
there is the risk that the management relevant supporting documents.
manipulates the revenue for realizing the
performance target. Therefore, we include the
conformation and recognition of Supor's revenue
as key auditing items.
IV. Other Information
The management of Supor is responsible for other information. Other information includes the information covered by the 2022 Supor Annual
Report, but excludes the financial statement and our audit report.
Our audit opinions on financial statement do not cover other information, and we do not express any authentication conclusions on other
information.
Integrated with our audit on financial statement, our responsibility is to read other information. In this process, we consider whether the other
information is significantly different from the information we will acquire from our audit or whether the other information has significant error.
Based on the work we have already executed, if we confirm the other information has significant error, we should report the fact. On this
aspect, we do not need to report any items.
V. Responsibilities of Management and Governance on Financial Statement
The management of Supor (hereinafter referred to as the "management") is responsible for preparing financial statement according to the
stipulations of Accounting Standards for Business Enterprises to enable fair presentation, and designing, executing and maintaining the required
internal control to keep the financial statement free of material misstatement caused by fraudulent practice or error.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
When preparing the financial statement, the management is responsible for evaluating the continuing operation ability of Supor, disclosing
the items related to continuing operation (if any), and using going-concern assumption. Unless otherwise that Supor plans to liquidate, terminates
its operation or has no other realistic choice.
The governance is responsible for supervising the financial statement process of Supor.
VI. Responsibility of CPA for Financial Statement Audit
Our objective is to acquire rational guarantee for keeping the financial statement free of material misstatement caused by fraudulent practice
or error and providing the audit report containing audit opinions. The rational guarantee is a high-level guarantee, but it cannot guarantee that a
materials misstatement can be found if it exists when we audit according to the auditing standard. The misstatement may be caused by fraudulent
practice or error. If a single or summarized rational expectation on misstatement may cause certain influence when financial statement user makes
economic decision in accordance with the financial statement, the misstatement will be deemed as "significant".
In the process of our audit according to the auditing standards, we used our professional judgment and retained our professional skepticism.
Meanwhile, we executed the following work:
1) Identify and evaluate material misstatement risk of financial statement caused by fraudulent practice or error, design and implement audit
procedures to cope with these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. A fraudulent
practice may involve in collusion, counterfeit, deliberate omission, false statement or may be above the internal control, so the risk that material
misstatement caused by fraudulent practice may not be found is higher than the risk that material misstatement caused by error may not be found.
2) Learn internal control related to the audit for the purpose of designing proper audit procedures.
3) Evaluate the appropriateness of the accounting policy selected by management and the rationality of the accounting estimate and related
disclosure made by the management.
4) Make conclusion for the appropriateness of the going-concern assumption used by management. Meanwhile, make conclusions for the
one whether there is significant uncertainty in the issue or item which may result in substantive doubt on the continuing operation ability of Supor
in accordance with the acquired audit evidences. If our conclusion thinks that there is significant uncertainty, the auditing standard requires us to
remind financial statement user in our audit report of paying attention to the related disclosure in the financial statement. If the disclosure is not
sufficient, we should present modified audit report. Our conclusion is based on the information that is available by the audit report date. However
future issue or circumstance may result in uncontinuing operation to Supor.
5) Evaluate the overall presentation (including disclosure), structure and contents of financial statement, and evaluate whether financial
statement presents related transactions and items fairly.
6) Acquire sufficient and appropriate audit evidences for financial information of entity activity or business activity of Supor, and express
opinions on audit financial statement. We are responsible for guiding, supervising and executing the audit of the Group, and bear full responsibility
for audit opinions.
We communicated audit scope, time schedule and significant audit finding and other issues with governance, including the internal control
defect that is worthy of noting in the audit process.
We have provided a declaration to the governance that we have abided by the professional ethics requirements related to independency, and
have communicated with the governance all relationships and other issues those are thought to affect our independency, as well as the related
precautionary measures (if applicable).
In the issue we communicated with the governance, we determined which issues are most important to the financial statement audit in the
current period, so which constitutes the key audit items. We described these items in our audit report, unless otherwise these items are prohibited
to openly disclose by law and regulation, or under few circumstances, if according to an rational expectation, when negative consequence of
communicating an issue in the audit report may exceed its benefit on the aspect of public benefit, we confirm that we will not communicate the
issue in our audit report.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
KPMG Huazhen LLP (Special General Partnership) Chinese CPA:
(Project partner): ________________
Huang Feng
Beijing, China Chinese CPA: ________________
Jin Yang
Date: March 29, 2023
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2022 Annual Report of Zhejiang Supor Co., Ltd.
II. Financial Statements
Unit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
December 31, 2022
Unit: RMB
Item December 31, 2022 January 1, 2022
Current assets:
Monetary capital 3,563,140,907.75 2,654,052,417.47
Settlement reserve
Loans to other banks
Transactional financial assets 431,382,527.79 180,312,742.31
Derivative financial assets
Notes receivable 27,325,952.95 54,879,357.24
Accounts receivable 1,926,518,118.38 2,716,945,985.33
Receivables financing 235,957,044.34 3,312,225.62
Advance payment 339,609,547.02 385,367,862.85
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 16,373,697.26 12,159,756.67
Including: interest receivable
Dividend receivable
Reverse-REPO financial assets
Inventories 2,494,922,856.42 3,096,517,055.33
Contract assets
Held-for-sale assets
Non-current assets due within one year 32,157,534.25
Other current assets 450,986,016.76 2,055,027,382.63
Total current assets 9,518,374,202.92 11,158,574,785.45
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment 1,024,794,890.43 298,191,205.49
Long-term receivables
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Long-term equity investment 62,196,139.53 65,600,611.64
Other equity instrument investments
Other non-current financial assets
Investment properties
Fixed assets 1,303,075,391.03 1,291,902,992.54
Construction in progress 12,005,654.73 26,482,779.31
Productive biological assets
Oil and gas assets
Right-of-use assets 190,718,962.82 195,528,644.13
Intangible assets 440,017,733.16 452,200,863.39
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 401,472,928.85 410,974,540.21
Other non-current assets
Total non-current assets 3,434,281,700.55 2,740,881,636.71
Total assets 12,952,655,903.47 13,899,456,422.16
Current liabilities:
Short-term borrowings
Central bank loan
Loans from other banks
Transactional financial liabilities
Derivative financial liabilities
Notes payable 1,057,611,900.00 500,250,000.00
Accounts payable 2,635,521,548.19 3,769,700,826.50
Advance receipt
Contract liabilities 1,153,932,879.53 893,741,863.21
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 289,075,428.50 321,692,953.88
Taxes payable 204,608,713.27 254,094,791.55
Other payables 137,729,222.63 110,605,272.21
Including: interest payable
Dividend payable
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Handling fee and commission payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 41,924,940.24 29,191,343.78
Other current liabilities 194,699,612.98 189,810,383.37
Total current liabilities 5,715,104,245.34 6,069,087,434.50
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 150,779,916.58 157,420,210.81
Long-term payables
Long-term employee remuneration payable 1,441,111.55 1,903,631.69
Estimated liabilities 12,640,441.72 12,737,298.24
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 164,861,469.85 172,061,140.74
Total liabilities 5,879,965,715.19 6,241,148,575.24
Owners' equities:
Share capital 808,654,476.00 808,678,476.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 125,368,989.44 122,970,340.27
Minus: treasury share 99,724,823.49 76,159,897.25
Other comprehensive incomes -20,454,823.26 -41,522,541.60
Special reserve
Surplus reserve 356,924,811.32 356,924,811.32
General risk reserve
Undistributed profit 5,865,316,233.53 6,451,748,564.12
Total owners' equities belonging to parent company 7,036,084,863.54 7,622,639,752.86
Minority shareholders' equities 36,605,324.74 35,668,094.06
Total owners' equities 7,072,690,188.28 7,658,307,846.92
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Total liabilities and owners' equities 12,952,655,903.47 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 December 31, 2022 January 1, 2022
Current assets:
Monetary capital 1,484,137,518.26 800,923,960.55
Transactional financial assets 200,131,817.00 100,147,324.89
Derivative financial assets
Notes receivable 1,342,003.33 2,997,000.00
Accounts receivable 374,598,742.75 742,333,802.03
Receivables financing 4,800,000.00
Advance payment 46,224,404.38 63,620,742.54
Other receivables 1,174,381,191.82 1,845,295,351.20
Including: interest receivable
Dividend receivable
Inventories 164,679,339.53 240,622,374.15
Contract assets
Held-for-sale assets
Non-current assets due within one year 32,157,534.25
Other current assets 388,309,086.23 1,889,046,917.63
Total current assets 3,870,761,637.55 5,684,987,472.99
Non-current assets:
Debt investment
Other debt investment 201,645,863.02 194,975,863.02
Long-term receivables
Long-term equity investment 2,826,017,955.55 3,013,961,596.02
Other equity instrument investments
Other non-current financial assets
Investment properties
Fixed assets 155,241,036.13 151,228,257.41
Construction in progress 12,559,947.93
Productive biological assets
Oil and gas assets
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Right-of-use assets 3,752,480.47 3,363,931.38
Intangible assets 80,034,692.59 83,723,923.89
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 15,974,025.22 14,878,870.52
Other non-current assets
Total non-current assets 3,282,666,052.98 3,474,692,390.17
Total assets 7,153,427,690.53 9,159,679,863.16
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable 15,650,000.00
Accounts payable 193,807,274.54 193,367,234.90
Advance receipt
Contract liabilities 2,796,093.48 1,510,782.40
Employee remuneration payable 41,689,539.05 56,501,055.35
Taxes payable 23,453,381.53 31,587,253.36
Other payables 1,224,151,285.03 2,355,630,738.97
Including: interest payable
Dividend payable
Held-for-sale liabilities
Non-current liabilities due within one year 227,345.02 289,557.95
Other current liabilities 1,447,611.99 3,038,481.86
Total current liabilities 1,503,222,530.64 2,641,925,104.79
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 2,859,701.28 2,494,235.39
Long-term payables
Long-term employee remuneration payable 166,125.04 193,670.03
Estimated liabilities
Deferred incomes
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 3,025,826.32 2,687,905.42
Total liabilities 1,506,248,356.96 2,644,613,010.21
Owners' equities:
Share capital 808,654,476.00 808,678,476.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 202,697,741.40 236,901,053.81
Minus: treasury share 99,724,823.49 76,159,897.25
Other comprehensive incomes
Special reserve
Surplus reserve 404,339,238.00 404,339,238.00
Undistributed profit 4,331,212,701.66 5,141,307,982.39
Total owners' equities 5,647,179,333.57 6,515,066,852.95
Total liabilities and owners' equities 7,153,427,690.53 9,159,679,863.16
3. Consolidated profit statement
Unit: RMB
Item 2022 2021
I. Total Operating Incomes 20,170,527,516.66 21,585,331,407.47
Including: Operating income 20,170,527,516.66 21,585,331,407.47
Interest revenues
Premium earned
Revenue from handling fees and commission
II. Total Operating Costs 17,949,216,147.97 19,469,391,130.25
Including: Operating cost 14,969,328,840.57 16,621,613,160.80
Interest expense
Expense of handling fees and commission
Surrender value
Net payments for insurance claims
Net amount of withdrawn reserve fund for insured liability
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 130,693,539.41 93,417,055.89
82
2022 Annual Report of Zhejiang Supor Co., Ltd.
Sales expenses 2,156,297,058.63 1,909,953,095.54
Administrative expenses 374,060,640.28 400,779,608.67
R&D expenses 416,259,356.99 450,110,510.51
Financial expenses -97,423,287.91 -6,482,301.16
Including: interest expenses 9,278,948.78 10,076,904.44
Interest revenues 76,571,126.41 32,337,493.71
Plus: other incomes 236,694,812.34 202,864,580.37
Investment income ("-" for loss) 54,047,027.80 90,885,851.42
Including: investment income on associated enterprise and joint
-3,262,848.85 1,378,149.04
venture
Income from derecognition of financial assets measured by
amortized cost
Exchange gain ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 1,382,527.79 312,742.31
Credit impairment loss ("-" for loss) 34,519,315.22 -10,395,445.48
Asset impairment loss ("-" for loss) -11,352,717.26 -14,390,694.58
Assets disposal income ("-" for loss) -1,363,504.85 -105,379.68
III. Operating Profit ("-" for Loss) 2,535,238,829.73 2,385,111,931.58
Plus: non-operating income 14,435,126.69 13,899,290.93
Minus: non-operating expense 4,464,352.44 13,229,643.55
IV. Total Profit ("-" for Total Loss) 2,545,209,603.98 2,385,781,578.96
Minus: income tax expenses 479,033,164.36 444,410,051.07
V. Net Profit ("-" for Net Loss) 2,066,176,439.62 1,941,371,527.89
(I) By business continuity
1. Net profit under continuing operation ("-" for net loss) 2,066,176,439.62 1,941,371,527.89
2. Net profit under discontinuing operation ("-" for net loss)
(II) By ownership
1. Net profit belonging to the shareholders of parent company 2,067,659,526.97 1,943,943,608.94
2. Minority shareholders' profit and loss -1,483,087.35 -2,572,081.05
VI. After-tax Net Amount of Other Comprehensive Income 20,857,374.53 -2,741,304.66
After-tax net amount of other comprehensive income belonging to the owners of
21,067,718.34 -2,490,709.03
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
83
2022 Annual Report of Zhejiang Supor Co., Ltd.
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes that can be reclassified into profit and loss 21,067,718.34 -2,490,709.03
1. Other comprehensive income that cannot be transferred to gain and loss
under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive income
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial statement 21,067,718.34 -2,490,709.03
7. Others
After-tax net amount of other comprehensive income belonging to minority
-210,343.81 -250,595.63
shareholder
VII. Total Comprehensive Incomes 2,087,033,814.15 1,938,630,223.23
Total comprehensive income attributed to owners of parent company 2,088,727,245.31 1,941,452,899.91
Total comprehensive income attributed to minority shareholders -1,693,431.16 -2,822,676.68
VIII. Earnings per Share
(I) Basic earnings per share (EPS) 2.565 2.400
(II) Diluted earnings per share (EPS) 2.564 2.395
If the enterprise under the same control is merged, the net profit realized by the merged party before merger was RMB 0, and the net profit
realized by the merged party during the prior period was RMB 0.
Legal representative: Thierry de LA TOUR D'ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting department:
Xu Bo
4. Profit statement of the parent company
Unit: RMB
Item 2022 2021
I. Operating Incomes 2,364,560,278.23 2,828,495,059.23
Minus: Operating cost 1,989,102,797.37 2,460,726,672.24
Taxes and surcharges 13,935,411.50 8,125,567.64
Sales expenses 39,335,409.39 28,094,636.49
Administrative expenses 127,077,263.72 126,191,995.70
R&D expenses 20,695,875.79 41,388,785.70
Financial expenses -58,101,403.25 21,771,525.71
Including: interest expenses 11,941,995.43 44,798,990.86
Interest revenues 56,076,101.26 28,257,409.42
Plus: other incomes 24,058,763.78 17,976,444.49
Investment income ("-" for loss) 1,596,577,717.17 5,184,243,462.90
Including: investment income on associated enterprise and joint venture -3,262,848.85 1,378,149.04
84
2022 Annual Report of Zhejiang Supor Co., Ltd.
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) 131,817.00 147,324.89
Credit impairment loss ("-" for loss) 16,808,778.58 -8,640,871.69
Asset impairment loss ("-" for loss) -715,941.15 -784,245.11
Assets disposal income ("-" for loss) -40,662.89 -134,581.34
II. Operating profit ("-" for loss) 1,869,335,396.20 5,335,003,409.89
Plus: Non-operating income 484,196.66 4,477,220.31
Minus: Non-operating expense 2,766,054.34 2,731,331.51
III. Total profit ("-" for total loss) 1,867,053,538.52 5,336,749,298.69
Minus: Income tax expenses 59,409,208.43 45,546,634.81
IV. Net profit ("-" for net loss) 1,807,644,330.09 5,291,202,663.88
(I) Net profit under continuing operation ("-" for net loss) 1,807,644,330.09 5,291,202,663.88
(II) Net profit under discontinuing operation ("-" for net loss)
V. After-tax Net Amount of Other Comprehensive Income
(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 that can be reclassified into profit and loss
1. Other comprehensive income that cannot be transferred to gain and loss
under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive income
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial statement
7. Others
VI. Total Comprehensive Incomes 1,807,644,330.09 5,291,202,663.88
VII. Earnings per Share
(I) Basic earnings per share (EPS)
(II) Diluted earnings per share (EPS)
85
2022 Annual Report of Zhejiang Supor Co., Ltd.
5. Consolidated cash flow statement:
Unit: RMB
Item 2022 2021
I. Cash Flows from Operating Activities
Cash received from sales of commodities or rendering of services 23,163,412,847.57 23,182,241,217.47
Net increase of customer deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash received from original insurance contract premium
Net cash received from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest, handling fees and commission
Net increase of loans from others
Net increment of repurchase capital
Net cash from security transaction agency
Tax refund received 403,826,573.61 610,822,240.47
Other cash receipts related to operating activities 296,671,425.19 229,899,647.29
Subtotal of cash inflows from operating activities 23,863,910,846.37 24,022,963,105.23
Cash payments for purchasing commodities and receiving services 15,899,889,917.07 17,850,456,959.80
Net increment of customer loans and advances
Net increase of central bank deposit and interbank deposit
Cash payment for insurance indemnities of original insurance contracts
Net increase of loans to other banks
Cash for interest, handling fees and commission
Cash payment of policy dividend
Cash paid to and for employees 1,782,670,318.64 1,899,260,747.79
Taxes paid 1,115,969,533.28 890,602,697.79
Other cash expenses related to operating activities 1,905,425,831.54 1,332,761,131.16
Subtotal of cash outflows from operating activities 20,703,955,600.53 21,973,081,536.54
Net cash flows from operating activities 3,159,955,245.84 2,049,881,568.69
II. Net Cash Flows from Investing Activities
Cash received from return of investments
Cash received from investment income 182,101,198.03 25,768,911.57
Net cash received from disposal of fixed assets, intangible assets and other long-
5,578,762.74 3,145,603.32
term assets
Net cash receipts from disposal of subsidiaries and other business units
86
2022 Annual Report of Zhejiang Supor Co., Ltd.
Other cash receipts related to investing activities 3,103,136,438.00 1,571,003,018.00
Subtotal of cash inflows from investing activities 3,290,816,398.77 1,599,917,532.89
Net cash paid for the construction of fixed assets, intangible assets and other
165,432,733.39 228,405,541.27
long-term assets
Cash paid for investment
Net increase of pledge loans
Net cash paid for acquiring subsidiaries and other business units
Other cash payments related to investing activities 3,597,439,490.93 1,032,059,354.70
Subtotal of cash outflows from investing activities 3,762,872,224.32 1,260,464,895.97
Net cash flows from investing activities -472,055,825.55 339,452,636.92
III. Net Cash Flows from Financing Activities
Cash from absorbing investments 2,630,661.84 2,706,689.63
Including: cash received by subsidiaries from minority shareholder investment 2,630,661.84 2,706,689.63
Cash received from obtaining borrowings 6,000,990.92 3,602,000.00
Other cash receipts related to financing activities 2,463,000.00
Subtotal of cash inflows from financing activities 11,094,652.76 6,308,689.63
Cash paid for debt repayment 3,596,000.00
Cash paid for distribution of dividends or profits or for payment of interest 2,567,723,592.43 1,048,679,452.16
Including: dividends or profits paid by subsidiaries to minority shareholders
Other cash payments related to financing activities 208,900,848.04 547,940,133.09
Subtotal of cash outflows from financing activities 2,776,624,440.47 1,600,215,585.25
Net cash flows from financing activities -2,765,529,787.71 -1,593,906,895.62
IV. Impact of Exchange Rate Changes on Cash and Cash Equivalents 29,831,440.74 -7,481,549.97
V. Net Increase in Cash and Cash Equivalents -47,798,926.68 787,945,760.02
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 2,395,932,752.38 2,443,731,679.06
6. Cash flow statement of parent company
Unit: RMB
Item 2022 2021
I. Cash Flows from Operating Activities
Cash received from sales of commodities or rendering of services 2,813,612,098.09 2,642,279,158.98
Tax refund received 192,478,449.00 238,420,004.81
Other cash receipts related to operating activities 49,326,684.43 26,558,582.66
Subtotal of cash inflows from operating activities 3,055,417,231.52 2,907,257,746.45
Cash payments for purchasing commodities and receiving services 1,997,873,868.31 2,789,379,560.55
Cash paid to and for employees 179,500,705.78 215,892,811.34
87
2022 Annual Report of Zhejiang Supor Co., Ltd.
Taxes paid 82,083,795.20 46,877,046.87
Other cash expenses related to operating activities 77,325,691.14 75,608,725.87
Subtotal of cash outflows from operating activities 2,336,784,060.43 3,127,758,144.63
Net cash flows from operating activities 718,633,171.09 -220,500,398.18
II. Net Cash Flows from Investing Activities
Cash received from return of investments
Cash received from investment income 1,787,538,717.80 6,041,421,134.66
Net cash received from disposal of fixed assets, intangible assets and other long-
863,939.72 1,056,865.14
term assets
Net cash receipts from disposal of subsidiaries and other business units 149,634,690.89
Other cash receipts related to investing activities 2,281,025,218.38 583,973,207.66
Subtotal of cash inflows from investing activities 4,219,062,566.79 6,626,451,207.46
Net cash paid for the construction of fixed assets, intangible assets and other
30,951,887.39 31,861,974.32
long-term assets
Cash paid for investment
Net cash paid for acquiring subsidiaries and other business units
Other cash payments related to investing activities 3,117,694,762.51 5,021,564,508.65
Subtotal of cash outflows from investing activities 3,148,646,649.90 5,053,426,482.97
Net cash flows from investing activities 1,070,415,916.89 1,573,024,724.49
III. Net Cash Flows from Financing Activities
Cash from absorbing investments
Cash received from obtaining borrowings
Other cash receipts related to financing activities 1,227,206,126.98 799,190,020.80
Subtotal of cash inflows from financing activities 1,227,206,126.98 799,190,020.80
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of interest 2,580,043,028.70 1,096,173,877.15
Other cash payments related to financing activities 164,163,901.01 485,317,231.86
Subtotal of cash outflows from financing activities 2,744,206,929.71 1,581,491,109.01
Net cash flows from financing activities -1,517,000,802.73 -782,301,088.21
IV. Impact of Exchange Rate Changes on Cash and Cash Equivalents 10,981,710.82 -1,134,560.47
V. Net Increase in Cash and Cash Equivalents 283,029,996.07 569,088,677.63
Plus: balance of cash and cash equivalents at the beginning of the period 800,923,960.55 231,835,282.92
VI. Balance of Cash and Cash Equivalents at the End of the Period 1,083,953,956.62 800,923,960.55
7. Statement of Changes in Consolidated Owners' Equities
Amount of this period
Unit: RMB
88
2022 Annual Report of Zhejiang Supor Co., Ltd.
2022
Minority shareholders'
Owners' equities belonging to parent company
Item
equities
Total owners'
Other equity instruments
Other equities
Share Capital Minus: treasury Special Surplus General risk Undistributed
comprehensive Others Subtotal
capital reserves share reserve reserve reserve profit
Preferred Perpetual incomes
Others
share bond
I. Closing
808,678,47 356,924,811. 7,622,639,752. 7,658,307,846.
Balance of Last 122,970,340.27 76,159,897.25 -41,522,541.60 6,451,748,564.12 35,668,094.06
6.00 32 86 92
Year
Plus: cumulative
changes of
accounting
policies
Error correction
of prior period
Enterprise
merger under the
same control
Others
II. Opening
808,678,47 356,924,811. 7,622,639,752. 7,658,307,846.
Balance of 122,970,340.27 76,159,897.25 -41,522,541.60 6,451,748,564.12 35,668,094.06
6.00 32 86 92
Current Year
III. Current
Period Increase - -
-24,000.00 2,398,649.17 23,564,926.24 21,067,718.34 -586,432,330.59 937,230.68
("-" for 586,554,889.32 585,617,658.64
Decrease)
(I) Total of
2,088,727,245. 2,087,033,814.
comprehensive 21,067,718.34 2,067,659,526.97 -1,693,431.16
31 15
incomes
(II) Capital
invested and
-24,000.00 2,398,649.17 -69,991,307.25 -86,368,265.13 -14,002,308.71 2,630,661.84 -11,371,646.87
reduced by the
owner
1. Common
shares invested
by shareholders
2. Capital
invested by other
equity instrument
holders
3. Amount of
share-based
payment -24,000.00 2,398,649.17 -69,991,307.25 -86,368,265.13 -14,002,308.71 -14,002,308.71
included into
owners' equities
4. Others 2,630,661.84 2,630,661.84
- -
(III) Profit
-2,567,723,592.43 2,567,723,592. 2,567,723,592.
distribution
43 43
1. Appropriation
of surplus reserve
2. Appropriation
of general risk
reserve
3. Appropriation - -
of profit to -2,567,723,592.43 2,567,723,592. 2,567,723,592.
owners 43 43
4. Others
(IV) Internal
carry-over within
owners' equities
1. Transfer of
capital reserve to
capital (or share
capital)
2. Transfer of
surplus reserve to
capital (or share
capital)
3. Surplus
reserve to cover
losses
4. Retained
earnings after
carrying over
amount of
changes in
defined benefit
plan
5. Retained
earnings after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1. Appropriation
of current period
89
2022 Annual Report of Zhejiang Supor Co., Ltd.
2. Application of
current period
(VI) Others 93,556,233.49 -93,556,233.49 -93,556,233.49
IV. Closing
808,654,47 356,924,811. 7,036,084,863. 7,072,690,188.
Balance of 125,368,989.44 99,724,823.49 -20,454,823.26 5,865,316,233.53 36,605,324.74
6.00 32 54 28
Current Period
Amount of last period
Unit: RMB
2021
Owners' equities belonging to parent company
Minority shareholders' equities
Other equity instruments
Item Total
Special reserve
Minus: Other General owners'
Preferred share
Capital Surplus Undistributed equities
Share capital treasury comprehensive risk Others Subtotal
Perpetual reserves reserve profit
Others share incomes reserve
bond
I. Closing
821,083,860.0 226,859,041. 412,206,786. 401,648,181. 6,202,587,444. 7,200,939,90 35,784,08 7,236,723,99
Balance of -39,031,832.57
0 81 34 64 38 8.92 1.11 0.03
Last Year
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Enterprise
merger under
the same
control
Others
II. Opening
821,083,860.0 226,859,041. 412,206,786. 401,648,181. 6,202,587,444. 7,200,939,90 35,784,08 7,236,723,99
Balance of -39,031,832.57
0 81 34 64 38 8.92 1.11 0.03
Current Year
III. Current
- - - -
Period - 421,699,843. 421,583,856.
103,888,701. 336,046,889. -2,490,709.03 44,723,370.3 249,161,119.74 115,987.0
Increase ("-" 12,405,384.00 94 89
54 09 2 5
for Decrease)
(I) Total of -
1,943,943,608. 1,941,452,89 1,938,630,22
comprehensiv -2,490,709.03 2,822,676.
94 9.91 3.23
e incomes 68
(II) Capital
- - - - -
invested and - - 2,706,689.
103,888,701. 743,777,904. 401,648,181. 63,420,326.6 60,713,637.0
reduced by the 12,405,384.00 289,255,963.54 63
54 07 64 5 2
owner
1. Common
shares
invested by
shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount of
share-based
- -
payment 11,110,370.6 74,504,697.2
-26,000.00 63,420,326.6 63,420,326.6
included into 0 5
5 5
owners'
equities
- - -
- - 2,706,689.
4. Others 114,999,072. 818,282,601. 401,648,181. 2,706,689.63
12,379,384.00 289,255,963.54 63
14 32 64
- - -
(III) Profit 356,924,811.
1,405,526,525. 1,048,601,71 1,048,601,71
distribution 32
66 4.34 4.34
1.
Appropriation 356,924,811. -
of surplus 32 356,924,811.32
reserve
2.
Appropriation
of general risk
reserve
3.
- - -
Appropriation
1,048,601,714. 1,048,601,71 1,048,601,71
of profit to
34 4.34 4.34
owners
4. Others
90
2022 Annual Report of Zhejiang Supor Co., Ltd.
(IV) Internal
carry-over
within owners'
equities
1. Transfer of
capital reserve
to capital (or
share capital)
2. Transfer of
surplus
reserve to
capital (or
share capital)
3. Surplus
reserve to
cover losses
4. Retained
earnings after
carrying over
amount of
changes in
defined
benefit plan
5. Retained
earnings after
carrying over
other
comprehensiv
e incomes
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
- -
407,731,014.
(VI) Others 407,731,014. 407,731,014.
98
98 98
IV. Closing
Balance of 808,678,476.0 122,970,340. 76,159,897.2 356,924,811. 6,451,748,564. 7,622,639,75 35,668,09 7,658,307,84
-41,522,541.60
Current 0 27 5 32 12 2.86 4.06 6.92
Period
8. Statement of Changes in Owners' Equities of the Parent Company
Amount of this period
Unit: RMB
2022
Item Other equity instruments Other Total
Capital Minus: Special Surplus Undistributed
Share capital comprehensive Others owners'
Preferred Perpetual reserves treasury share reserve reserve profit
Others incomes equities
share bond
I. Closing
236,901,053. 76,159,897.2 404,339,238. 5,141,307,98 6,515,066,
Balance of Last 808,678,476.00
81 5 00 2.39 852.95
Year
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Opening
236,901,053. 76,159,897.2 404,339,238. 5,141,307,98 6,515,066,
Balance of 808,678,476.00
81 5 00 2.39 852.95
Current Year
III. Current
- - -
Period Increase 23,564,926.2
-24,000.00 34,203,312.4 810,095,280. 867,887,51
("-" for 4
1 73 9.38
Decrease)
(I) Total of
1,807,644,33 1,807,644,
comprehensive
0.09 330.09
incomes
91
2022 Annual Report of Zhejiang Supor Co., Ltd.
(II) Capital
- - - -
invested and
-24,000.00 34,203,312.4 69,991,307.2 50,016,018.3 14,252,023
reduced by the
1 5 9 .55
owner
1. Common
shares invested
by shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount of
share-based
- - - -
payment
-24,000.00 34,203,312.4 69,991,307.2 50,016,018.3 14,252,023
included into
1 5 9 .55
owners'
equities
4. Others
- -
(III) Profit
2,567,723,59 2,567,723,
distribution
2.43 592.43
1.
Appropriation
of surplus
reserve
2.
- -
Appropriation
2,567,723,59 2,567,723,
of profit to
2.43 592.43
owners
3. Others
(IV) Internal
carry-over
within owners'
equities
1. Transfer of
capital reserve
to capital (or
share capital)
2. Transfer of
surplus reserve
to capital (or
share capital)
3. Surplus
reserve to
cover losses
4. Retained
earnings after
carrying over
amount of
changes in
defined benefit
plan
5. Retained
earnings after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
-
93,556,233.4
(VI) Others 93,556,233
9
.49
IV. Closing
202,697,741. 99,724,823.4 404,339,238. 4,331,212,70 5,647,179,
Balance of 808,654,476.00
40 9 00 1.66 333.57
Current Period
Amount of last period
Unit: RMB
92
2022 Annual Report of Zhejiang Supor Co., Ltd.
2021
Item Other equity instruments Other Total
Capital Minus: treasury Special Surplus Undistributed
Share capital comprehensive Others owners'
Preferred reserves share reserve reserve profit
Perpetual bond Others incomes equities
share
I. Closing
666,767,32 410,621,980.0 2,741,898,2
Balance of Last 821,083,860.00 412,206,786.34 1,255,631,844.17
6.32 0 24.15
Year
Plus: cumulative
changes of
accounting
policies
Error correction
of prior period
Others
II. Opening
666,767,32 410,621,980.0 2,741,898,2
Balance of 821,083,860.00 412,206,786.34 1,255,631,844.17
6.32 0 24.15
Current Year
III. Current
-
Period Increase 3,773,168,6
-12,405,384.00 429,866,27 -336,046,889.09 -6,282,742.00 3,885,676,138.22
("-" for 28.80
2.51
Decrease)
(I) Total of
5,291,202,6
comprehensive 5,291,202,663.88
63.88
incomes
(II) Capital
- - -
invested and
-12,405,384.00 429,866,27 -743,777,904.07 363,207,553.3 61,701,305.
reduced by the
2.51 2 76
owner
1. Common
shares invested
by shareholders
2. Capital
invested by other
equity
instrument
holders
3. Amount of
share-based -
12,829,391.
payment -26,000.00 74,504,697.25 61,701,305.
49
included into 76
owners' equities
- -
4. Others -12,379,384.00 442,695,66 -818,282,601.32 363,207,553.3
4.00 2
-
(III) Profit 356,924,811.3 -
1,048,601,7
distribution 2 1,405,526,525.66
14.34
1. Appropriation
356,924,811.3
of surplus -356,924,811.32
2
reserve
2. Appropriation -
-
of profit to 1,048,601,7
1,048,601,714.34
owners 14.34
3. Others
(IV) Internal
carry-over
within owners'
equities
1. Transfer of
capital reserve to
capital (or share
capital)
2. Transfer of
surplus reserve
to capital (or
share capital)
3. Surplus
reserve to cover
losses
4. Retained
earnings after
carrying over
amount of
changes in
defined benefit
plan
5. Retained
earnings after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
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2022 Annual Report of Zhejiang Supor Co., Ltd.
1. Appropriation
of current period
2. Application of
current period
-
(VI) Others 407,731,014.98 407,731,014
.98
IV. Closing
236,901,05 404,339,238.0 6,515,066,8
Balance of 808,678,476.00 76,159,897.25 5,141,307,982.39
3.81 0 52.95
Current Period
III. Company Profile
Zhejiang Supor Co., Ltd (hereinafter referred to as "the Company") is a limited liability company (by shares) transformed on an integral basis
from Zhejiang Supor Cookware Co., Ltd under the approval of Leading Group for Enterprise Listing of the People's Government of Zhejiang
Province with No. ZSS [2000] 24 approval document. On November 10, 2000, the Company registered at Zhejiang Administration for Industry
and Commerce. Registered address: Yuhuan City, Zhejiang Province; head office address: Hangzhou City, Zhejiang Province. The Company's
parent company is SEB INTERNATIONALE S.A.S whose final parent company is SEB S.A. The Company has a corporate business license
numbered 913300007046976861.
The company and its subsidiaries (hereinafter referred to as "Supor") are mainly engaged in the R&D, production and distribution of kitchen
utensils, stainless steel products, daily hardware, small domestic appliances and cookware; its products are cookware and small domestic appliances.
its products are cookware and small domestic appliances.
The financial statement was released after the approval of the Company's Board of Directors on March 29, 2023.
By December 31, 2022, there were altogether 20 subsidiaries included in the scope of consolidated financial statement. See Note 9 "Equity
in Other Entities" for details. The merger scope of the Group in the year increases by 0 company, decreases by 1 company. See Note 8 "Change
on Merger Scope" for details.
IV. Preparation Basis of the Financial Statements
1. Preparation basis
The financial statements of the Group are prepared based on the assumption of continuing operation and actual transactions and items and in
accordance with the Accounting Standard for Business Enterprises -- Basic Standard (Released CZBL No.33, Revised CZBL No.76) issued by
the Ministry of Finance of the People's Republic of China (hereinafter referred to as the "Ministry of Finance"), and 42 specific accounting
standards, guidelines for the application of accounting standards for business enterprises, interpretations to the accounting standards for business
enterprises and other provisions released and revised on and after February 15, 2006 (hereinafter referred to as accounting standards for business
enterprises) and the disclosure provisions of the Regulations of Corporate Information Disclosure and Preparation by Companies Publicly Issuing
Securities No.15 -- General Provisions on Financial Reporting (Revised in 2014) of the China Securities Regulatory Commission.
According to the relevant regulations of the accounting standards for business enterprises, the Group's accounting is made on accrual basis.
Except for certain financial instruments, measurements in these financial statements are made on the basis of historical cost. If an asset is impaired,
corresponding impairment provision will be made in accordance with relevant regulations.
2. Continuing operation
The Company has the ability to continue operations for at least 12 months since the end of the reporting period, and there are no major issues
affecting the ability to continue operations.
V. Important Accounting Policies and Estimates
Prompt for specific accounting policies and estimates:
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2022 Annual Report of Zhejiang Supor Co., Ltd.
The Group has made accounting policies and estimates as to method for accruing bad debt provision for receivables, method for calculating
inventory value and accruing depreciation provision, depreciation of fixed assets and amortization of intangible assets, recognition time point of
income and other transactions and items based on the actual production and operation features and the provisions of related accounting standards
for business enterprises. See 9 "Financial instruments", 12 "Inventory" (3), 16 "Fixed assets" (2), 19 "Intangible assets" (1), 26 "Revenue" of Note
5 for details.
1. Abidance of the statement of Accounting Standards for Business Enterprises
The financial statement conforms to the requirements of Accounting Standards for Business Enterprises and has reflected relevant information
such as the financial conditions on December 31, 2022, operating results and cash flow in 2022 of the Company and the Group on an authentic
and intact basis. In addition, the financial statements of the Company and the Group conform to the disclosure requirements of the Regulations of
Corporate Information Disclosure and Preparation by Companies Publicly Issuing Securities No 15 - General Provisions on Financial Reporting
revised by the China Securities Regulatory Commission in 2014 and related financial statements and their notes.
2. Accounting period
The accounting period of the Group is divided into annual period and interim period; an interim period refers to a reporting period which is
shorter than a whole fiscal year. The Group takes calendar year as the fiscal year, i.e., from January 1 to December 31.
3. Operating cycle
The normal operating cycle means the period from the time when the Group purchases the assets used for processing to the time of realizing
cash or cash equivalents. The Group takes 12 months as an operating cycle and uses it as a standard for classifying the liquidity of assets and
liabilities.
4. Recording currency
RMB is used in the main economic environment in which the Company and its domestic subsidiaries operate and the Company and its
domestic subsidiaries use RMB as the recording currency. Recording currency for foreign subsidiaries of the Company is determined as VND,
SGD and IDR separately based on the currency in main economic environment in which they operate. The Group uses RMB as the recording
currency to prepare the financial statement.
5. Accounting treatment method for the enterprise merger under and not under the same control
Enterprise merger refers to the transaction or events of two or more separate enterprises combing into a reporting entity. Enterprise merger is
divided into the enterprise merger under the same control and enterprise merger not under the same control.
For transactions not under the same control, the purchasing party will consider whether to choose the simplified judgment method of
"concentration test" when judging whether the acquired asset portfolio constitutes a business. If the portfolio passes the concentration test, it is
judged that it does not constitute a business. Otherwise, it shall still be judged in line with business conditions.
When the Group acquires a group of assets or net assets that do not constitute a business, the purchase cost shall be allocated on the basis of
the relative fair value of the identifiable assets and liabilities acquired on the purchase date, and shall not be treated as per the following accounting
treatment methods for enterprise merger.
(1) Enterprise merger under the same control
If enterprises involved with merger are under the final control of the same party or same multiple parties before and after merger, and for a
non-temporary period, then it belongs to an enterprise merger under the same control. 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 merging party, and other
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2022 Annual Report of Zhejiang Supor Co., Ltd.
participating enterprise is the merged party. The merger date refers to the day when the merging party actually obtains the control rights of the
merged party.
The assets and liabilities obtained by the merging party shall be measured on the basis of book value of the merged party on the merger date.
As to the difference between the book value of net assets acquired by merging party and the book value of merger consideration paid by it (or total
amount of the face value of shares issued), the capital reserve (share capital premium) shall be adjusted correspondingly; the retained earnings will
be adjusted as long as capital reserve (share capital premium) is insufficient to be offset.
The merging party's direct expenses incurred from enterprise merger shall be 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, then it
belongs to an enterprise merger not under the same control. For enterprise merger not under the same control, the party which has obtained the
control rights for other combining enterprises on the purchase date will be considered as the purchasing party, and other participating enterprise is
the purchased party. The purchase date refers to the day when the purchasing party obtains the control right over the purchased party.
As for enterprise merger not under the same control, the merger costs include the assets paid by the purchasing party, the liabilities accrued
and assumed, as well as the fair value of equity securities issued for obtaining purchased party's control right on the purchase date; the intermediary
fees, such as auditing, legal service and evaluation and consulting, and other related administrative expenses for the enterprise merger shall be
included into the current profits and losses at the time of occurrence. Transaction cost of equity securities or debt securities issued by the purchasing
party as merger consideration shall be included into initial recognition amount of the equity securities or debt securities. Contingent consideration
involved shall be included into the merger cost according to the fair value at the purchase date; if new or further proofs appearing within 12 months
after the purchase date show that the contingent consideration needs to be adjusted, the merger goodwill shall be adjusted correspondingly. The
merger costs incurred by the purchasing party and the identifiable net assets obtained in the merger shall be measured at the fair value on the
purchase date. The amount of the merger cost larger than the fair value of identifiable net assets of the purchased party acquired by it on the
purchase date shall be recognized as goodwill. If the merger cost is lower than the fair value of identifiable net assets of the purchased party
obtained during merging, the measurement of the identifiable assets of the purchased party obtained, liabilities or fair value of contingent liabilities
and the merger costs shall be reviewed firstly. If the merger cost is still lower than the fair value of identifiable net assets of the purchased party
obtained during merger, the difference shall be included into the current profits and losses.
If the deductible temporary difference of the purchased party gained by purchasing party fails to be confirmed on the purchase date due to
the inconformity of the recognition condition of deferred income tax assets, and in case new or further information obtained indicates that the
relevant conditions on the purchase date have existed within 12 months after the purchase date, and it is predicted that the economic benefits
brought by the purchased party from deductible temporary differences can be realized on the purchase date, relevant deferred income tax assets
shall be confirmed, at the same time, the goodwill shall be reduced; if the goodwill is insufficient for offset, the differential part shall be confirmed
as the current profits and losses; except for above conditions, in case the deferred income tax assets are confirmed to be related to the enterprise
merger, they shall be included into the current profits and losses.
As for the enterprise merger not under the same control realized step by step through multiple transactions, it shall judge whether the multiple
transactions belong to the "package deal" according to No. 5 Notice About Printing and Issuing Accounting Standards for Business Enterprises
Explanation in Ministry of Finance (CK [2012] No. 19) and the judgment standard (refer to the Note 5 6 "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 individual financial
statements and consolidated financial statements to conduct relevant accounting treatment.
The sum of book value of the purchased party's equity investment held prior to the purchase date and the newly investment cost on the
purchase date in individual financial statements shall be regarded as the initial investment cost of such investment; in case that the equity of the
purchased party held before the purchase date is involved in other comprehensive incomes, when disposing of the investment, other comprehensive
income related shall be transferred to the current investment income.
In consolidated financial statements, the equity of the purchased party held before the purchase date shall be measured again according to the
fair value of the equity at the purchase date, and the difference between fair value and its book value shall be included into the current investment
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2022 Annual Report of Zhejiang Supor Co., Ltd.
income; in case that equity of the purchased party held before the purchase date is involved in other comprehensive incomes, other comprehensive
income related shall be transferred to the current investment income on the purchase date.
6. Preparation method for consolidated financial statements
(1) Principles for defining the scope of consolidated financial statement
The scope of the consolidated financial statements is control-based. Control refers to that Supor has the right in an investee which allows it
to enjoy variable returns by participating relevant activities of such investee and to use such right to influence the amount of such returns. The
consolidation scope shall include the Company and all its subsidiaries, and "subsidiaries" refers to the bodies under the control of Supor.
Supor will re-evaluate the situation once the change in relevant facts and circumstances affects the factors involved in the above definition of
control.
(2) Preparation method for consolidated financial statements
From the date of obtaining actual control right of the subsidiaries' net assets and production operation decision, the Group will begin to bring
it into the merger scope; subsidiaries will not be 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 opening balance of the consolidated balance
sheet will not be adjusted. As for the subsidiary increased due to the enterprise merger not under the same control, its operating results and cash
flow after the purchase date have been properly included into the consolidated profit statement and consolidated cash flow statement, and the
opening balance and contrast balance of the consolidated financial statement shall not be adjusted. As for the subsidiary increased due to the
enterprise merger under the same control and the merged party under consolidation by merger, the operating results and cash flow from the
beginning of the current period of the merger to the merger date have been properly 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 statements on the basis of fair value of identifiable net assets at the purchase date.
All significant current balance and transaction and unrealized profits in the Group are offset in the preparation of consolidated financial
statement.
The shareholders' equities and current net profits or losses of subsidiaries that do not belong to the part owned by the Company, shall be
separately listed in the shareholders' equities and minority shareholders' profit and loss in the consolidated financial statement as the minority
shareholders' equities and profits and losses. The share in the current net profit or loss of the subsidiary that belongs to minority shareholders'
equities shall be set out as "minority shareholders' profit and loss" under net profit in the consolidated profit statement. In case the losses of the
subsidiary shared by minority shareholders exceed the share that shall be enjoyed by minority shareholders in the subsidiary's shareholders' equities
at the beginning of period, they shall be offset with minority shareholders' equities.
In case of losing the control right for the original subsidiary due to disposal of partial equity investment or other reasons, the residual equity
shall be measured again according to the fair value at the date when the control right is lost. The difference between the sum of the consideration
acquired by equity disposal and the fair value of residual equity and the share of net assets of the original subsidiary that shall be enjoyed and is
calculated continuously from the purchase date according to the original shareholding ratio shall be included into the investment income of the
current period when the control right is lost. As for other comprehensive income which relate to the equity investment of the original subsidiaries,
when the control right is lost, the accounting treatment shall be carried out on the same basis as the subsidiary's direct disposal of relevant assets
or liabilities. Thereafter, the residual equity of this part shall be further measured in accordance with Accounting Standards for Business Enterprises
No. 2 -- Long-term Equity Investment or Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial
Instruments. See Note 5 15 "Long-term Equity Investment" or Note 5 9 "Financial Instruments" for details.
If the Group disposes the equity investment of subsidiary step by step via multiple transactions until losing the control right, it is necessary
to distinguish whether transactions for disposal to the equity investment of subsidiary until losing the control right belong to the package deal.
When the disposal of the articles, conditions and the economic impact of various transactions for the equity investment of the subsidiary is subject
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2022 Annual Report of Zhejiang Supor Co., Ltd.
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 for the original subsidiary due to disposal of partial equity investment or other reasons" (see previous paragraph) for
details. If the disposal of transactions on subsidiaries' equity investments until loss of control right is a package deal, they are regarded as a
transaction that disposes the subsidiary and loses the control right; however, the difference between each disposal price and the subsidiary's net
asset share enjoyed corresponding to disposing investment before loss of control right shall be recognized as other comprehensive incomes in the
consolidated financial statements, which will be transferred into the current investment profits and losses on investments of losing the control right
when the control right is lost.
7. Determining standards for cash and cash equivalents
Cash and cash equivalents of the Group includes cash on hand and the deposit that can be used for making payment at any time as well as
investments that are held by the Group, have a short term (generally mature within 3 months since the purchase date) and strong liquidity, can be
converted into the cash of known amount easily, and have small risks in value change.
8. Foreign currency business and foreign currency statement conversion
(1) Conversion method for foreign currency transactions
After initial recognition, the foreign currency transactions occurring in the Group are converted into recording currency amounts at the spot
rate prevailing on the transaction date (usually the central parity of the exchange rate quoted on the day of issuance by the People's Bank of China,
the same below).
(2) Conversion method for foreign currency monetary items and foreign currency non-monetary items
For the balance sheet date, the spot rate on the balance sheet date will be adopted in the conversion of the foreign currency monetary items.
In terms of the resulting exchange differences: ① The exchange difference of special foreign currency borrowings related to acquiring and
constructing assets which meet capitalization conditions is disposed on the principle of the capitalization of borrowing expense; and ② foreign
currency monetary items measured at the fair value with their changes included into other comprehensive incomes, except that the exchange
difference created by other book balance changes other than by amortized costs (including decrease in value) is included into other comprehensive
incomes, are included into the current profits and losses.
As to foreign currency non-monetary items measured by historical cost, the amount in the recording currency converted at the spot rate on
the transaction date is still employed for measurement; as to foreign currency non-monetary items measured by fair value, it's required to employ
the spot rate at the fair value confirmation date for conversion, and the resulting exchange difference belongs to the difference of equity instrument
investment measured at the fair value with their changes included into other comprehensive incomes, and is included into other comprehensive
income or recognized as other comprehensive incomes; other differences are included into current profits and losses.
(3) Conversion of foreign currency financial statement
The foreign currency financial statement of overseas business is converted to RMB statement with the following method: the assets and
liabilities in the balance sheet shall be converted based on the spot rate on the balance sheet date; as for shareholders' equities, except the
"undistributed profits", other items shall be converted by the spot rate on the date of occurrence. Items under income and expense in the profit
statement shall be translated according to the spot rate at the transaction date. The undistributed profits at the beginning of the year is the year-end
undistributed profit after conversion of last year; the period-end undistributed profit is calculated and presented according to the profit distribution
of each item after conversion; the balance of the total amount among the assets and liabilities as well as shareholders' equities after conversion
serves as "conversion difference in foreign currency statement" and is recognized as other comprehensive income; For disposal of overseas business
and the loss of control right, the conversion difference in foreign currency statement related to the overseas business and presented under the
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2022 Annual Report of Zhejiang Supor Co., Ltd.
shareholders' equities in the balance sheet is transferred wholly or according to the disposal ratio of the overseas business into the current disposal
profits and losses.
Foreign cash flows and cash flows of subsidiaries overseas are converted based on spot rate on the occurring date of cash flows. The influenced
amount of changes in the exchange rate on cash is listed separately in the cash flow statement as an adjustment item.
The beginning amount and actual amount of the year shall be presented according to the amount after conversion of financial statement of
last year.
In case of loss of control right of overseas business due to disposal of the Group's entire owners' equities in overseas business, or the disposal
of partial equity investment or other reasons, the foreign currency conversion difference listed in the shareholders' equities items in the balance
sheet, related to the overseas business and attributable to owners' equities belonging to parent company shall be totally converted into the current
disposal profits and losses.
In case of decrease of the ratio of overseas business, but no loss of control right due to disposal of partial equity investment or other reasons,
the conversion difference related to the disposal of part of related currency in the overseas business shall be attributable to the minority shareholders'
equities, and not converted into the current profits and losses.
If there are any foreign currency monetary items that substantially constitute net investment in overseas businesses, the exchange difference
generated due to the 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 instruments
When the Group becomes one party of financial instrument contract, it's required to recognize financial assets or financial liabilities.
(1) Classification, recognition and measurement of financial assets
Based on the business mode for managing financial assets and the contracted cash flow features of financial assets, the Group 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, and financial assets measured at the fair value with their changes included into the current profits and losses.
The business mode of the Company's management of financial assets means that how the Group manages its financial assets so as to generate
cash flows. Through business mode, it can be determined that whether the cash flow of financial assets managed by the Group is from the collection
of contractual cash flow, sales of financial assets, or both. The Group, based on the objective fact and specific business objective of financial asset
management determined by key management personnel, makes decisions on the business mode for managing financial assets.
The Group evaluates the contractual cash flow characteristic of financial assets to determine whether the contractual cash flow generated by
the relevant financial assets on the specific date is only payment of principal and interests for outstanding principal amount. Wherein, the principal
refers to the fair value of financial assets at initial recognition; interest includes consideration of the time value of money, the credit risk related to
the outstanding principal amount for a specific period, and other basic borrowing risks, costs, and profits. Furthermore, the Group 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 the Group changes its business mode for managing financial assets, all affected related financial assets are reclassified on the first day
of the first reporting period after the change of business mode, otherwise, financial assets cannot be reclassified after initial recognition.
Financial assets shall be measured by fair value during initial recognition. As to financial assets 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 the Group based on the consideration amount that the Group is entitled to receive.
(a) Financial assets measured by amortized cost
The business mode of the Group to manage financial assets measured by amortized cost is aimed at receiving 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 the Group to carry out subsequent
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2022 Annual Report of Zhejiang Supor Co., Ltd.
measurement of such financial asset according to the amortized cost, and the gains or losses arising from amortization and impairment are included
into the current profits and losses.
(b) Financial assets measured at the fair value with their changes included into other comprehensive incomes
The business mode of the Group 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. The Group measures such financial assets measured at the
fair value with their changes included into other comprehensive incomes, but impairment losses or gains, exchange profits and losses, and interest
revenue calculated based on effective interest method are included into the current profits and losses. When the financial asset is derecognized,
the accumulated gains or losses previously included into other comprehensive income shall be transferred out of other comprehensive income and
included into the current profits and losses.
In addition, for investments in non-transactional equity instruments, the Group can irrevocably designate them as financial assets measured
at the fair value with their changes included into other comprehensive incomes upon initial recognition. The designation is made on a single
investment basis, and the relevant investment meets the definition of equity instrument from the issuer's point of view. The Group includes the
related dividend income of such financial assets into the current profits and losses with the change in fair value included into other comprehensive
income. When the financial asset is derecognized, the accumulated gains or losses previously included into other comprehensive income shall be
transferred out of other comprehensive income to retained earnings and not included into the current profits and losses.
(c) Financial assets measured at the fair value with their changes included into the current profits and losses
The Group recognizes foregoing financial assets measured by amortized cost and that are not financial assets measured at the fair value with
their changes included into other comprehensive incomes as financial assets measured at the fair value with their changes included into the current
profits and losses. In addition, during initial recognition, in order to eliminate or significantly reduce accounting mismatches, the Group designates
part of the financial assets measured at the fair value with their changes included into the current profits and losses. As to such financial assets,
subsequent measurement shall be carried out by the Group based on fair value, and the resulting gains or losses (including interest and dividend
income) are included into current profits and losses, unless the financial asset is part of the hedging relationship.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities are classified as financial liabilities measured at the fair value with their changes included into the current profits and
losses, financial guarantee liabilities and other financial liabilities upon initial recognition. As to financial liabilities measured at the fair value with
their changes included into the current profits and losses, related transaction cost shall be included into the current profits and losses directly; as
to other financial liabilities, related transaction cost shall be included into initial recognition amount.
(a) Financial liabilities measured at the fair value with their changes included into the current profits and losses
Financial liabilities measured at the fair value with their changes included into the current profits and losses include transactional financial
liabilities (including derivatives belonging to financial liabilities) and financial liabilities that are designated to be measured at fair value with
changes included into the current profits and losses during initial recognition.
Transactional financial liabilities (including derivatives belonging to financial liabilities) are measured subsequently at fair value and except
for those related to hedge accounting, changes in fair value are included into the current profits and losses.
For financial liabilities measured at the fair value with their changes included into the current profits and losses, changes in their fair value
caused by changes in the Group's own credit risk are included into other comprehensive income, and when such liabilities are stopped to be
recognized, accumulated changes in their fair value caused by changes in the Group's own credit risk that is included into other comprehensive
income are transferred to retained earnings. Other changes in fair value are included into current profits and losses. If the treatment of impact of
changes in credit risk of these financial liabilities in the above manner will cause or expand accounting mismatches in profit or loss, the Group
will include all gains or losses of such financial liabilities (including impact of changes in the Company's own credit risk) into the current profits
and losses.
(b) Financial guarantee liabilities
A financial guarantee contract refers to a contract that requires the Group to pay a specific amount to the contract holder who has suffered a
loss when the specific debtor fails to pay the debt in accordance with the original or modified terms of the debt instrument at maturity.
After initial recognition, the income related to the financial guarantee contract is apportioned and included into the current profits and losses
in accordance with the accounting policies mentioned in Note 5 26 "Revenue". Financial guarantee liabilities are subsequently measured according
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2022 Annual Report of Zhejiang Supor Co., Ltd.
to the higher of the loss provision amount determined according to the impairment principle of financial instruments and the balance of its initial
recognition amount after deducting the accumulated amortization amount of income related to financial guarantee contracts.
(c) Other financial liabilities
In addition to financial liabilities and financial guarantee contracts as a result of financial asset transfers that are not in line with derecognition
condition or continuous involvement in transferred financial asset, other financial liabilities are classified as financial liabilities measured at
amortized cost and measured subsequently at amortized cost, and gains or losses arising from derecognition or amortization of such liabilities are
included into the current profits and losses
(3) Recognition basis and measurement method of the transfer of financial assets
If financial assets meet one of the following conditions, derecognition of such financial assets will be carried out: ① the contractual right to
receive cash flow from the financial assets is terminated; ② the financial assets have been transferred and almost all the risks and rewards in the
ownership of the financial assets are transferred to the transferee; ③ the financial assets have been transferred and, although the Group has neither
transferred nor retained almost all risks and rewards in the ownership of the financial assets, it has waived its control over the financial assets.
If 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 the current profits and losses.
In case partial transfer of financial assets satisfies the derecognition condition, book value of the financial assets transferred shall be amortized
between the derecognition part and the part without derecognition according to their own fair value, and the 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, the Group needs to determine whether almost
all risks and rewards related to ownership of such financial assets have been transferred. If almost all risks and rewards related to the ownership
of such financial assets are transferred to the transferee, derecognition of such financial assets shall be conducted; derecognition of such financial
assets should not be conducted if the risks and rewards related to the ownership of such financial assets are reserved; if the risks and rewards
related to the ownership of such financial assets are not transferred nor reserved, it needs to determine whether the Company keeps its control over
such assets and make accounting treatment based on principles as described in the foregoing paragraphs.
(4) Derecognition of financial liabilities
In case the current obligations of financial liabilities (or part of the financial liabilities) have been terminated, the Group will carry out
derecognition of such financial liabilities or part of them. In case the Group (borrower) signs an agreement with the debtor to replace the original
financial liabilities by means of bearing new financial liabilities, and contract clauses related to the new financial liabilities and original financial
liabilities are different in essence, it's required to carry out derecognition of original financial liabilities and recognize the new financial liabilities
simultaneously. If the Group substantially modifies the contract terms of the original financial liability (or part of it), the original financial liability
is derecognized and a new financial liability is recognized in accordance with the revised terms.
In case derecognition is carried out for the whole or part of financial liabilities, the difference between their book value and the consideration
paid (including non-cash assets transferred out or liabilities assumed) shall be included by the Group in the current profits and losses.
(5) Offset of financial assets and financial liabilities
In case the Group has the legal right of offsetting the financial assets and financial liabilities recognized and such legal right is executable
now, and the Group plans to carry out settlement by net amount or realize the financial assets and pay off the financial liabilities simultaneously,
the net amount after mutual offset of such financial assets and financial liabilities shall be set out in the balance sheet. Otherwise, financial assets
and financial liabilities shall be set out in the balance sheet respectively and will not be offset mutually.
(6) Equity instruments
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An equity instrument refers to a contract that can prove the ownership of residual interest in assets after the Group deducts all liabilities. The
Group's issuing (including refinancing), repurchase, sale or cancellation of equity instruments are treated as changes in equity, and transaction
costs related to equity transactions are deducted from equity. The Group does not determine changes in fair value of equity instruments.
Distribution of dividends (including "interest" from instruments classified as equity instruments) from the equity instruments during the
duration of the Group is treated as profit distribution.
10. Financial assets impairment
Supor needs to recognize the financial assets with impairment losses as financial asset measured at amortized costs and debt tools measured
at the fair value with their changes included into other comprehensive incomes, including mainly notes receivable, accounts receivable, receivables
financing, other receivables and other debt investments. Moreover, for contract assets and some financial guarantee contracts, the impairment
provision shall be accrued and the credit impairment loss shall be recognized pursuant to the accounting policy set forth herein.
(1) Recognition method of impairment provision
The above items are accrued for impairment provision and credit impairment losses by the Group in accordance with applicable expected
credit loss measure methods (general or simplified) based on the expected credit loss.
Credit loss refers to the difference between all contractual cash flows discounted as per the original effective interest rate and receivable from
the contract and all cash flows expected to be received by the Group, namely, the present value of a shortage of cash. Wherein, the purchased or
underlying financial assets with credit impairment of the Group shall be discounted as per effective interest rate based on credit adjustment.
The general method for measuring expected credit loss is as follows, the Group evaluates whether credit risk of financial assets (including
contract assets and other applicable items, the same below) has remarkably increased after initial recognition on each balance sheet date. In case
of credit risk having remarkably increased after initial recognition, the Group will measure loss provision as per the amount equivalent to expected
credit loss in the entire duration; in case of credit risk failing to remarkably increase after initial recognition, the Group will measure loss provision
as per the amount equivalent to expected credit loss in the next 12 months. At the time of evaluating expected credit loss, the Group considers all
reasonable and well-founded information, including forward-looking information.
When the expected credit loss is measured, the longest period to be considered by the Group is the longest contract period when the enterprise
faces the credit risk (including considering the renewal option). The expected credit loss of the entire duration refers to the expected credit loss
arising from all possible events of default regarding financial instrument occurring during the entire expected duration. Expected credit loss in the
next 12 months refers to expected credit loss resulting from default of financial instruments likely occurring within 12 months after the balance
sheet date (expected duration if the expected duration of financial instruments is less than 12 months) which is part of expected credit loss during
the entire duration.
For the financial instrument with a lower credit risk on the balance sheet date, the Group assumes that its credit risks have not increased
significantly since the initial recognition, and measures the loss provisions according to the expected credit losses of the future 12 months.
(2) Standard for judging whether credit risk has remarkably increased after initial recognition.
In case that probability of default of one financial asset confirmed on the balance sheet date in the expected duration is obviously higher than
that confirmed at the moment of initial recognition in the expected duration, it means credit risk of such financial asset remarkably increases. The
changes of default risk within the next 12 months are adopted by the Group other than special cases as reasonable estimate in the entire duration,
ensuring whether the credit risk has increased significantly since the initial recognition.
(3) Combinatorial method of appraising future credit risk based on portfolio
the Group appraises the credit risk of the financial asset item of significantly different credit risks, such as: receivables from the related parties;
receivables disputed with the opposite side or involving litigation or arbitration; there have been obvious signs showing that the debtor possibly is
not able to perform the repayment obligations of receivable amounts, etc.
Except financial assets of individual credit risk assessment, the Group divides financial assets into different groups based on the common risk
characteristics and appraises credit risks based on portfolio.
(4) Accounting treatment method of financial assets impairment
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The expected credit losses of all kinds of financial assets are calculated by the Group at the end of the duration. If the estimated credit loss is
greater than the book value of the current impairment provision, the difference is recognized as impairment loss; if not, it is recognized as
impairment profits.
(5) Determination method of credit losses of all kinds of financial assets
(a) Accounts receivable and contract assets
For accounts receivable and contract asset not involving significant financing part, Supor always calculates the loss provision as the amount
of expected credit loss within the entire duration.
For accounts receivable and contract asset involving significant financing part, Supor always calculates the loss provision as the amount of
expected credit loss within the duration.
The other accounts receivables other than individual credit risk assessment are divided into different portfolios based on their credit risk
characteristics:
Item Basis for determination of portfolio
Accounts receivable:
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
Portfolio 2: low-risk portfolio The portfolio includes very low-risk amounts such as the payment of export third-party goods.
Portfolio 3: merged related parties This portfolio includes current amount between related parties within the merger scope of amounts
portfolio receivable.
(b) Other receivables
The impairment loss is measured by the Group in accordance with the amount of expected credit loss equivalent to that within the next 12
months or the entire duration based on whether the credit risk of other receivables has increased significantly since the initial recognition. The
other receivables other than individual credit risk assessment are divided into different portfolios based on their credit risk characteristics:
Item Basis for determination of portfolio
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
The portfolio consists of interests receivable, dividends receivable, receivables from government
Portfolio 2: low-risk portfolio
departments with very low risk.
Portfolio 3: merged related parties This portfolio includes current amount between related parties within the merger scope of amounts
portfolio 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; See the Note 5 9 "Financial
Instruments" and 10 "Financial Assets Impairments" for relevant accounting policies.
12. Inventories
(1) Category
Inventory mainly includes raw materials, unfinished products, finished products, low value consumables and packing materials.
(2) Valuation method for the acquisition and distribution of inventory
When inventories are acquired, they are priced at actual costs. Inventory costs include procurement costs, processing costs, and other costs.
When inventories are used and distributed, the price is calculated by the one-off weighted average method at the end of a month.
(3) 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 holding inventory is more than the ordering amount in
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sales contract, the net realizable value of the excess inventory shall be measured based on general sales price. The determination of net realizable
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 net realizable value, subject to the lower one. In case the
cost is higher than net realizable 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 the 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 amortize during the period of use;
packing materials shall be amortized by one-off amortization method during the requisition.
13. Contract assets
The Group lists the customer's unpaid contract consideration as contract assets in the balance sheet, under which the Group has fulfilled its
performance obligations in accordance with the contract, and it does not have the right to collect payments from customers unconditionally (that
is, only depending on the passage of time). Contract assets and liabilities under the same contract are listed in net amount, and those under different
contracts shall not be offset.
For the determination and accounting treatment methods of expected credit losses of contract assets, please refer to Note 5 10 "Financial
Assets Impairment".
14. Held-for-sale assets and disposal group
In case the Group mainly recovers the book value by selling (including non-monetary assets exchange of commercial essence, the same below)
rather than using a non-current asset or disposal group continuously, it will be classified as held-for-sale category. Specific standard refers to
meeting the following conditions at the same time: one non-current asset or disposal group can be immediately sold under the current situation
pursuant to the convention for selling such asset or disposal group in similar transaction; the Group has made a resolution about sale plan and got
certain of purchase commitment; it's predicted that the sale will be completed within one year. Disposal group refers to a group of assets that will
be disposed together as a whole by selling or other means in a transaction and the liabilities directly related to these assets and transferred in the
transaction. In case the asset group or asset group portfolio where the disposal group belongs has amortized the goodwill acquired in enterprise
merger according to Accounting Standards for Business Enterprises No. 8 -- Impairment of Assets, the disposal group shall include the goodwill
amortized to it.
If there are non-current assets or disposal groups purchased to resell during initial measurement or on the balance sheet date based on
remeasurement of the Group, if the book value is higher than the net amount by deducting the selling expenses with the fair value, the book value
shall be written down and be equal to the net amount by deducting the selling expenses with the fair value. The write-down amount shall be
confirmed as the asset impairment loss and included into the current profits and losses. At the same time, the impairment provision of the held-
for-sale assets shall be calculated and withdrawn. For the disposal group, it shall deduct the book value of the goodwill in the disposal group with
the asset impairment loss confirmed, then deduct in proportion the book value of each non-current asset in the disposal group conforming to the
measurement provisions on Accounting Standards for Business Enterprises No. 42 - Held-for-sale Non-current Assets, Disposal Group and
Discontinuing Operation (hereinafter referred to as "the Standard for Held-for-sale Non-current Assets"). For the held-for-sale disposal group, if
the net amount after deducting the selling expenses from the fair value on the subsequent balance sheet date increases, the previous write-down
amount shall be recovered and shall be reversed from the confirmed amount of asset impairment loss amount of the non-current asset as per the
measurement provisions on the Standard for Held-for-sale Non-current Assets after the assets are classified as held-for-sale category. The reverse
amount shall be included into the current profits and losses, and the book value shall be added in proportion of the book value of each non-current
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asset in the disposal group applicable to the measurement provisions on the Standard for Held-for-sale Non-current Assets, except for the goodwill;
Book value of the goodwill that has been offset and asset impairment loss recognized before the non-current assets applying to the measurement
provisions on the Standard for Held-for-sale Non-current Assets are classified as held-for-sale category shall not be reversed.
Depreciation or amortization will not be withdrawn for held-for-sale non-current assets or non-current assets in the disposal group, and the
interest of liabilities in held-for-sale disposal group and other expenses shall be recognized continuously.
When the non-current assets or disposal group can't be classified as held-for-sale category, the Group will no longer continue to classify them as
held-for-sale or remove non-current assets from the held-for-sale disposal group and measure them according to the following two items, subject
to the lower one: ① book value before the assets are classified as held-for-sale category, namely, the amount after the adjustment is carried out
according to the depreciation, amortization or impairment, etc. that shall be recognized in the condition that the assets are supposed not to be
classified as held-for-sale category; ② recoverable amount.
15. Long-term equity investment
The long-term equity investment mentioned in this part refers to the long-term equity investment of which the Group has control right,
common control right or significant impact on the invested units. Long-term equity investments that the Group does not have control, common
control or significant impact on the invested unit are accounted for as financial assets measured at the fair value with their changes included into
the current profits and losses. If such assets are not non-transactional, the Group may specify these capitals as measured at the financial assets
measured at the fair value with their changes included into other comprehensive incomes at the initial recognition. See Note 5 9 "Financial
Instruments" for details.
Common control refers to common control on a certain arrangement according to related provisions by the Group and related activities of the
arrangement can be decided only after the consent of the participant sharing the control right. Significant impact refers to the Group's power on
participating in the decision-making of financial and operating policies of the invested unit, but it can't control the formulation of these policies or
control the formulation commonly with other party.
Determination of investment cost
For the long-term equity investment obtained from the enterprise merger under the same control, the initial investment cost of the long-term
equity investment shall be taken as the share of the book value of the merged party's shareholders' equities/owners' equities in the final controlling
party's consolidated financial statements on the merger date. As to the difference between initial investment cost of long-term equity investments
and the book value of the cash paid, non-cash assets transferred and liabilities assumed, it's required to adjust the capital reserve correspondingly.
In case the capital reserve is insufficient for the offset, it's required to adjust the retained earnings. In the case of treating issued equity securities
as the merger consideration, the share of the book value of the merged party's shareholders' equities/owners' equities in the consolidated financial
statement of the final controlling party is regarded as the initial investment cost of long-term equity investment on the merger date; the capital
reserves shall be adjusted in accordance with taking the total face value of shares issued as share capital, and the difference between the initial
investment cost of long-term equity investment and the total face value of shares issued; In case the capital reserve is insufficient for the offset,
it's required to adjust the retained earnings. The equity of the merged party obtained step by step through several transactions, which finally forms
enterprise merger under the same control, shall be handled separately according to whether it belongs to "package deal": if it belongs to the
"package deal", the accounting treatment will be carried out by taking transactions as a certain one with control right. If it does not belong to
"package deal", the share of the book value of the merged party's shareholders' equities/owners' equities in the final controlling party's consolidated
financial statement on the merger date will be taken as the initial investment cost of long-term equity investment, and the capital reserves will be
adjusted according to the difference between the initial investment cost of long-term equity investment and the sum of book value of long-term
equity investment before combination and book value of consideration newly paid for acquiring the share; In case the capital reserve is insufficient
for the offset, it's required to adjust the retained earnings. Other comprehensive income of equity investment held before the merger date, which
is accounted by equity method or recognized as financial assets measured at the fair value with their changes included into other comprehensive
incomes, is temporarily not subject to the accounting treatment.
The long-term equity investment obtained from the enterprise merger not under the same control shall be used as the initial investment cost
of long-term equity investment according to the merger cost on the purchase date. The merger cost includes the sum of assets paid by the purchasing
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party, liabilities incurred or assumed, and fair value of issued equity securities. The equity of the purchased party held obtained step by step through
several transactions, which finally forms enterprise merger not under the same control, shall be handled separately according to whether it belongs
to "package deal": if it belongs to the "package deal", the accounting treatment will be carried out by taking transactions as a certain one with
control right. If it does not belong to "package deal", it shall take the sum of the book value of the original equity investment held by the original
purchased party and the newly investment cost as the initial investment cost of the long-term equity investments under the cost method. If the
equity originally held is accounted for by equity method, the relevant other comprehensive incomes will not be accounted for the time being.
The initial measurement of other equity investments except for the long-term equity investment formed by the enterprise merger shall be
carried out according to the costs; in consideration of the different acquisition modes of long-term equity investment, such costs shall be determined
respectively by the cash purchase price actually paid by the Group, the fair value of equity securities issued by the Group, value agreed in the
investment contract or agreement, the fair value or original book value of assets surrendered in the non-monetary assets exchange transaction, the
fair value of the long-term equity investment, etc. The expenses, taxes and other necessary expenditures directly related to the acquisition of the
long-term equity investment shall also be 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 investment cost.
(2) Methods for the subsequent measurement and the profit and loss confirmation
Long-term equity investments that have common control (except for joint operators) or significant impact on the invested unit are accounted
by equity method. Besides, the Company's financial statement adopts the cost method to account the long-term equity investment that can be
controlled by the invested unit.
(a) Long-term equity investments under the cost method
When the cost method is adopted for accounting, long-term equity investment is priced at the initial investment cost, and the cost of long-
term equity investment shall be adjusted when the investment is added or recovered. The current investment incomes shall be recognized by the
cash dividends or profits announced and issued by the invested unit, except for the actual price paid when the investment is obtained or the cash
dividends or profits which have been declared but not issued in the consideration.
(b) Long-term equity investments under the equity method
As to long-term equity investments checked by equity method, in case the initial investment cost is more than the shares of fair value of
identifiable net assets of the invested unit that shall be enjoyed during the investment, initial investment cost of the long-term equity investments
shall not be adjusted; in case the initial investment cost is less than the shares of fair value of identifiable net assets of the invested unit that shall
be enjoyed during the investment, the difference shall be included into the current profits and losses and the cost of long-term equity investments
shall be adjusted simultaneously.
When the equity method is adopted for accounting, it's required to recognize the investment income and other comprehensive income
respectively according to net profit or loss realized by the invested unit that shall be enjoyed or shared and other comprehensive income, and book
value of the long-term equity investment shall be adjusted simultaneously. As to the part that shall be enjoyed and calculated according to the
profits or cash dividends announced and distributed by the invested unit, it's required to reduce the book value of long-term equity investment
correspondingly. As to other changes in owners' equities of the invested unit except for net profits and losses, other comprehensive incomes and
profit distribution, book value of the long-term equity investment shall be adjusted and included into the capital reserve. When the shares of net
profit or loss of the invested unit that shall be enjoyed are recognized, it shall be based on fair value of each identifiable net asset of the invested
unit when the investment is acquired and after the adjustment is made on net profit of the invested unit. In case the accounting policy and accounting
period employed by the invested unit are different from those employed by the Group, financial statements of the invested unit shall be adjusted
according to the Group's accounting policy and accounting period. Besides, investment income, other comprehensive income, etc. shall be
recognized on this basis. For transactions between the Group and associated enterprise or joint venture, if the assets launched or sold do not
constitute the business, the unrealized internal trading profits and losses shall be offset according to the proportion attributable to the Group, and
the investment profits and losses shall be confirmed on this basis. In case the part incurred between the Group and the invested unit without internal
transaction loss belongs to the asset impairment loss, it shall not be offset. If the assets invested by the Group to the joint venture or associated
enterprise constitute the business, and the investor thereupon obtains the long-term equity investment but fails to obtain the control right, the fair
value of business launched is taken as the initial investment cost of newly long-term equity investment, and the difference between the initial
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investment cost and book value of business launched shall be included into the current profits and losses in full. If the assets sold by the Group to
the joint venture or associated enterprise constitute the business, the difference between the consideration acquired and the book value of business
shall be fully included into the current profits and losses. If the Group's assets purchased from the joint venture or associated enterprise constitute
the business, accounting treatment shall be conducted in accordance with the provisions of the Accounting Standards for Business Enterprises No.
20 - Enterprise Merger, and the gains or losses related to the transaction shall be fully recognized.
When the net loss of the invested unit that shall be shared is recognized, the book value of the long-term equity investment and other long-
term equity that actually constitute the net investment of the investee shall be written down to zero. Besides, if the Group has the obligation to bear
the additional loss for the invested unit, the estimated liabilities will be recognized according to the estimated obligation that shall be assumed and
included into the current investment losses. In case the net profit is realized by the invested unit later, after the Group makes up the unrecognized
loss amount shared by the income amount shared, it's required to recover the revenue recognition amount shared.
(c) Acquisition of minority shareholders' equities
When compiling the consolidated financial statements, the Company shall adjust the capital reserve due to the difference between the newly-
increased long-term equity investment from the purchase of the minority interest and the net asset shares enjoyed according to the new shareholding
proportion of the subsidiary continuously calculated from the purchase date (or the merger date); in case that the capital reserves are not sufficient
to offset, the retained earnings shall be adjusted.
(d) Disposal of the long-term equity investment
The parent company partially disposes the long-term equity investment of subsidiary when the control right is not lost in consolidated financial
statement. The difference between disposal price and subsidiaries' net assets enjoyed corresponding to the disposal of long-term equity investment
will be included into the shareholders' equities; supposing that the parent company loses the control right for the subsidiary due to the partial
disposal of the long-term equity investment for the subsidiary, it shall be dealt with in accordance with the relevant accounting policies as specified
in the Note 5 6 "Preparation Method for Consolidated Financial Statement" (2).
As for the disposal of the long-term equity investment under other circumstances, the difference between the book value of the disposed
equity and the actually-obtained price shall be included into the current profits and losses.
For long-term equity investments under the equity method, if the residual equities after disposal shall still be accounted by the equity method,
upon the disposal, the part of other comprehensive income that was originally included into shareholders' equities shall be accounted for on the
same basis as the invested unit's direct disposal of relevant assets or liabilities in a corresponding proportion. However, the owners' equities that
are recognized based on the changes in other owners' equities shall be carried forward to the current profits and losses in proportion, except for the
net profits and losses, other comprehensive incomes and profit distribution of investees.
For the long-term equity investments under the cost method, if the residual equities after disposal are still under the cost method, the
accounting treatment of other comprehensive incomes confirmed under the equity method or standards of recognition and measurement of financial
instruments before obtaining control of the invested unit shall be conducted on the same basis of the invested unit's directly disposal of the relevant
assets or liabilities, and it shall be carried forwarded to the current profits and losses in proportion; except for the net profits and losses, other
comprehensive incomes and profit distribution, the changes in other owners' equities in the invested unit's net assets which are accounted and
recognized by the equity method shall be carried forward to the current profits and losses in proportion.
If the Group loses control of the invested unit due to disposal of partial equity investment, and the residual equities after disposal may exert
common control or significant impact on the invested unit while preparing individual financial statements, the equity method will be adopted for
accounting, and it will be measured by the equity method and adjusted with equity method since obtaining; if the residual equities after disposal
cannot implement the common control or exert significant impact on the invested unit, the relevant provisions in respect of the standards of
recognition and measurement of financial instruments shall be referenced for the accounting treatment, and the difference between the fair value
and book value shall be included into the current profits and losses on the date of losing control. Before the Group acquires the control of the
invested unit, for other comprehensive incomes confirmed under the equity method or standards of recognition and measurement of financial
instruments, when the control of the invested unit is lost, the accounting treatment shall be conducted on the same basis of the invested unit's direct
disposal of relevant assets or liabilities; the changes in the other owners' equities of the invested unit's net assets other than the net profits and
losses, other comprehensive incomes and profit distribution calculated and confirmed by the equity method shall be settled and transferred to the
current profits and losses in proportion. Among which, if the residual equities after disposal are calculated by the equity method, other
comprehensive incomes and other owners' equities shall be carried forward in proportion; if the residual equities after disposal are to be conducted
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with accounting treatment in accordance with the standards of recognition and measurement of financial instruments, other comprehensive incomes
and other owners' equities shall be carried forward.
If the Group loses the common control or significant impact on the invested unit due to disposal of partial equity investment, the residual
equities after disposal shall be accounted according to the standards of recognition and measurement of financial instruments. The difference
between the fair value and book value shall be included into the current profits and losses on the date of losing common control or significant
impact. As for other comprehensive incomes as recognized when the original equity investment is under the equity method, it shall be subject to
the accounting treatment on the same basis of the assets or liabilities which are directly disposed by the invested unit when the equity method is
abandoned. The owners' equities which are recognized by the invested unit due to the changes in other owners' equities, except for the net profits
and losses, other comprehensive incomes and profit distribution of investees, will be reckoned in the current investment incomes when the equity
method is abandoned.
The Group will take the multiple transactions to dispose the subsidiaries' equity investment step by step until lose its control right. When the
above-mentioned transactions belong to the package deal, the transactions will be subject to the accounting treatment as an equity investment of
subsidiaries and transaction which has lost the control right. The difference between the disposal price and the corresponding book value of long-
term equity investment will be recognized as the other comprehensive incomes before losing the control right, which will be reckoned in the
current profits and losses when the control right is lost.
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 assets can be confirmed only when the relevant economic interests are possible to flow into the Group
and its costs can be measured reliably. The initial measurement of fixed assets shall be carried out according to the cost and considering the
expected influence of the discard expenses.
(2) Depreciation method
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, and annual depreciation rate of all kinds of fixed assets are as follows:
Categories Depreciation method Depreciation life (years) Residual rate Annual depreciation rate
Buildings and structures Straight-line method 20-30 3%-10% 3.00%-4.85%
General equipment Straight-line method 3-5 3%-10% 18.00%-32.33%
Special equipment Straight-line method 10 3%-10% 9.00%-9.70%
Transport facilities Straight-line method 4-10 3%-10% 9.00%-24.25%
The expected net residual value refers to the expected amount that the Group may obtain from the current disposal of fixed assets after
deducting the expected disposal expenses at the expiration of its expected service life.
(3) Impairment test method and counting and withdrawing method of the impairment provision of fixed assets
See more details about the impairment test method and the withdrawing method of impairment provision of fixed asset in Note 5 21
"Impairment of Long-term Assets".
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(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, except for this, shall be included into the current profits and losses once occurred.
As for each component constituting fixed assets, in case that they have different service life or provide economic interest for the group by
different ways and apply to different rates of depreciation and depreciation methods, the Group confirms each component as single fixed asset,
respectively.
When the fixed assets are under disposal state or it is estimated that no economic benefits can be produced through usage or disposal, such
fixed asset is confirmed to be derecognized. The difference of the amount left as the book value and relevant taxes are deducted from the disposal
income obtained from the sale, transfer, discard or damage of the fixed asset shall be included into the current profits and losses.
The Group shall review the service life, expected net residual value and depreciation method of the fixed assets at least by the end of the year.
In case of any change, it shall be deemed as changes in accounting estimate.
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.
See more details about the impairment test method and the withdrawing method of impairment provision of construction in progress in Note
5 21 "Impairment of Long-term Assets".
The income and cost of the Group's external sales of products or by-products produced before the fixed assets reach the expected serviceable
condition, the company should carry out accounting treatment separately according to Accounting Standards for Business Enterprises No. 14 -
Revenue and Accounting Standards for Business Enterprises No.1-Inventory, which shall be included into the current profits and losses.
18. Borrowing expenses
Borrowing expenses include interest on borrowings, amortization of discounts or premiums, auxiliary costs and exchange differences arising
from foreign currency borrowings, etc. For the borrowing expense generated from the acquisition and construction or production that can be
directly attributable to the assets that meet capitalization conditions, the capitalization shall be started when the asset expenditure or the borrowing
expense has incurred, or the acquisition and construction or production activities necessary for making the assets available for expected serviceable
or marketable state have been started; capitalization shall be stopped when the assets under acquisition and construction or production that meet
capitalization conditions reach the expected serviceable condition or marketable state. Other borrowing expenses are recognized as those in the
current period.
The amount can be capitalized after the actual interest expense generated from the specific borrowing deducting the interest revenue from the
unused loan funds deposited in the bank or investment income obtained from the temporary investment in the current period; for the general
borrowing, the capitalized amount will be determined after the weighted average of excessive part of accumulative asset expenditures compared
to the asset expenditure of special borrowing multiplied by the capitalization rate of the general borrowing occupied. The capitalization rate is
determined based on the weighted average interest rate of general borrowing.
In the capitalization period, all exchange differences of special foreign currency borrowings shall be capitalized; exchange difference of
general foreign currency borrowing shall be included into the current profits and losses.
Assets meeting capitalization conditions refer to the fixed assets, investment properties, inventories, etc. which can reach the expected
serviceable state or marketable state after quite a long time of acquisition and construction or production.
If assets meeting capitalization conditions are interrupted abnormally in the process of acquisition and construction or production, and the
interruption lasts for more than 3 months, the capitalization of borrowing expense shall be suspended till the asset acquisition and construction or
production restarts.
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19. Intangible assets
(1) Intangible assets
Intangible assets refer to the identifiable non-monetary assets that have are owned or controlled by the Group and have no physical form.
The initial measurement of intangible assets shall be conducted according to its costs. Expenditures related to intangible assets shall be
included into the cost of intangible assets if the relevant economic benefits may flow in the Group and its cost can be reliably measured. Other
expenditures, except for this, shall be included into the current profits and losses once occurred.
Land use right acquired is usually calculated as an intangible assets. As for buildings such as self-developed and constructed workshops, the
related land use right expenditure and construction cost of the buildings shall be calculated as intangible assets and fixed assets respectively. As
for purchased buildings and structures, the related prices are distributed between land use right and the buildings. If it is difficult to distribute them
reasonably, all of them shall be disposed as fixed asset.
As for intangible assets with a limited service life, the accumulative amount after deducting the expected net residual value and the accrued
impairment provisions with original value since the serviceable date, it is amortized with the straight-line method within the expected service life.
Intangible assets with undetermined service life will not be amortized.
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 use right 10 Straight-line method
At the end of each period, the service life of intangible assets with limited service life and the amortization method for them will be rechecked.
Changes of them will be regarded as changes of accounting estimate. In addition, the service life of intangible assets with undetermined service
life will be rechecked. If there is evidence manifesting that an intangible asset can bring economic benefits for the enterprise within a foreseeable
period, then its service life will be estimated and it will be amortized according to the amortization policy for intangible assets with limited service
life.
(2) R&D expenditure
Expenditures on the internal R&D items of the Group are divided into research expenditure and development expenditure.
Research expenditure is included into the current profits and losses at the time of occurrence.
Development expenditure that can meet the following conditions will be recognized as intangible assets, while those cannot meet will be
included into the current profits and losses.
-Complete the intangible asset so as to make the use or sale of it technically feasible;
-Have the intention to complete the intangible asset and use or sell it;
-The way that an intangible asset generates economic benefits is to certify that the products produced with the intangible asset 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
See more details about the impairment test method and the withdrawing method of impairment provision of intangible assets in Note 5 21
"Impairment of Long-term Assets".
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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 the Group 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.
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, the Group shall determine whether there is any sign of impairment on the
balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and impairment test shall be carried out. Goodwill,
intangible assets with undetermined service life and intangible assets that have not reached the serviceable state, whether there is any sign of
impairment, shall be subject to impairment test every year.
If the impairment test result shows that the recoverable amount of assets is lower than the book value thereof, impairment provision shall be
accrued according to the difference and included into impairment losses. The recoverable amount shall be determined as the net amount obtained
by the fair value of asset - disposal expense, or as the present value of the estimated future cash flow of assets, whichever is higher. The fair value
of the asset is determined according to the price in the sales 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 impairment provision shall be calculated and
recognized on the basis of the single asset. If it is hard to estimate the recoverable amount of the single asset, the recoverable amount of the asset
group shall be determined according to the asset group by the asset group to which the asset belongs. Asset group refers to the minimum asset
portfolio that is capable of generating cash inflow independently.
For the goodwill separately presented in the financial statements, during the impairment test, the book value of goodwill shall be apportioned
to the asset group or asset group portfolio expected to be benefited from the synergistic effect of enterprise merger. If the test results show that the
recoverable amount of the asset group or asset group portfolio containing the apportioned goodwill is lower than its book value, the corresponding
impairment loss shall be recognized. The amount of impairment loss firstly offsets the book value of goodwill apportioned to the asset group or
asset group portfolio, and then offsets the book value of other assets in proportion according to the proportion of the book value other than goodwill
in the asset group or asset group portfolio.
Once the above-mentioned asset impairment losses are recognized, the part of which can be recovered shall not be reversed in subsequent
periods.
22. Contract liabilities
Contract liabilities refer to the obligation of the Group to transfer commodities to customers for the received or receivable consideration from
customers. In the event that the customer has paid the contractual consideration or the Group has obtained the unconditional collection right before
it transfers the commodities to customers, the Group shall present the received or receivable account as contract liabilities with regard to the actual
payment by customers and the due payment, whichever happens earlier. Contract assets and liabilities under the same contract are listed in net
amount, and those under different contracts shall not be offset.
23. Employee remuneration
The Group's employee remuneration mainly includes short-term employee remuneration, post-employment benefits, termination benefits and
other long-term employee benefits. Including:
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Short-term employee remuneration mainly includes salary, bonus, allowance and subsidy, employee benefits expense, medicare premium,
maternity premium, occupational injuries premium, housing accumulation fund, labor union expenditure, personnel education fund, non-monetary
benefit, etc. During the accounting period in which the Group's employees provide services for the Group, actual short-term employee remuneration
incurred shall be recognized as the liabilities and 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 the Group cannot unilaterally withdraw termination
benefits provided for cancellation of labor relation plan or downsizing suggestion and on the date when the Group confirms the cost related to
restructuring involving payment of termination benefits, whichever is the earlier, the employee remuneration liabilities caused by termination
benefits shall be recognized and included into the current profits and losses. However, if it is expected that the termination benefits cannot be fully
paid within twelve months after the annual reporting period is over, it shall be handled according to other long-term employee remuneration.
The same principle for termination benefits described above shall be adopted for the plan of employee internal retirement. Staff salary and
social insurance premium to be paid by the Group for the early retired employee from the date of stopping providing services to the date of normal
retirement are included into the current profits and losses (termination benefit) if the estimated liabilities recognition conditions are met.
24. Estimated liabilities
If the obligation related to contingencies satisfies the following conditions at the same time, the Group shall recognize it as the estimated
liabilities: ① This obligation is the current obligation undertaken by the Group; ② Performance of this obligation may make economic benefits
flow out of the enterprise; ③ Amount of this obligation can be reliably measured.
On the balance sheet date, consider the risks, uncertainty, time value of money and other factors related to contingencies, conduct
measurement for estimated liabilities subject to the optimal estimate value of expenditures needed for the fulfillment of the related existing
responsibilities.
The necessary expenditure has a contiguous range, and within this range, all kinds of results have the same possibility to occur. The optimal
estimate is determined according to the median of this range. In other circumstances, the optimal estimate is treated as below:
- If the contingency involves with a single item, then the optimal estimate will be determined based on the amount that is most likely to occur.
- If the contingency involves with several items, then the optimal estimate will be determined based on all possible results and their
probabilities.
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 an asset when confirming it may be recovered. Confirmed compensation amount shall not exceed the book value of
estimated 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 enforceable contract becomes a loss contract, for which the liability can conform to the aforesaid estimated liabilities
confirmation conditions, confirm the part the estimated losses of the contract surpass the confirmed impairment loss (if any) of the underlying
asset in the contract as estimated liability.
(2) Restructuring obligations
It shall determine the estimated liabilities amount according to the direct expenditures related to the restructuring which has detailed, formal
and publicly stated restructuring plan and which 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 the Group 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 case of completing the service within the waiting period or meeting the required
performance conditions; when the vesting right is granted immediately, the relevant cost or expense is included on the grant date according to the
straight-line method, and the capital reserves shall be increased accordingly.
On each balance sheet date during the waiting period, the Group makes the optimal estimate based on the latest information such as the
change in the number of employees with vesting rights, and corrects the number of equity instruments that are expected to be vested. The impact
of the above estimates is 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 the Group based on shares or other equity
instruments. If the vesting right is granted immediately after the grant, the relevant cost or expense will be included on the grant date, and the
liabilities increased accordingly; if the service within the waiting period must be completed or the required performance conditions are met, the
fair value of the liabilities assumed by the Group is based on the optimal estimate of the vesting rights on each balance sheet date of the waiting
period. The services obtained in the current period are included into the cost or expense, and the liabilities are increased accordingly.
The fair value of the liability is re-measured at the balance sheet date and the settlement day before the settlement of the relevant liabilities,
and the change shall be included into the current profits and losses.
(2) Accounting treatment related to the modification and termination of share-based payment plan
When the Group modifies the share-based payment plan, if the modification increases the fair value of the equity instruments granted, the
increase in the fair value of the equity instruments is recognized accordingly. The increase of the fair value of equity instruments refers to the
difference between the fair value of the equity instruments before and after the modification on the modification day. If the modification reduces
the total fair value of the share-based payment or adopts other methods that are not conducive to the employee, the service obtained will continue
to be accounted for, as if the change has never occurred, unless the Group cancels some or all of the equity instruments granted.
During the waiting period, if the granted equity instrument is cancelled, the Group will cancel the granted equity instrument as an accelerated
exercise, and the amount to be recognized in the remaining waiting period will be immediately 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, the Group will treat it as a cancellation of the equity instrument.
(3) Accounting treatment of the share-based payment transactions involving the Group and the shareholders or actual controllers of the Company
For share-based payment transaction involving the Group or the Company's shareholders or actual controller, if either settlement enterprise
or enterprise accepting service is inside the Group or outside the Group, the accounting treatment shall be conducted in the consolidated financial
statements of the Group according to the following regulations:
-Where the settlement enterprise makes calculation by its own equity instruments, the share-based payment transaction shall be treated as the
equity-settled share-based payment; in addition, it shall be handled as a cash-settled share-based payment.
-If the settlement enterprise is an investor of a service enterprise, it shall be recognized as the long-term equity investment of the service
enterprise according to the fair value of the equity instrument at the grant date or the fair value of the liability to be assumed, and the capital
reserves (other capital reserves) or liabilities shall be recognized.
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-If the enterprise accepting service does not have a settlement obligation or the equity instruments granted to the enterprise employees are its
own equity instrument, such share-based payment transaction shall be treated as the equity-settled share-based payment. If the enterprise accepting
service has a settlement obligation and the equity instruments granted to the enterprise employees are not its own equity instrument, such share-
based payment transaction shall be treated as the cash-settled share-based payment.
The share-based payment transactions between the enterprises within the Group, if the acceptance services enterprise and the settlement
enterprise are not the same enterprise, and the confirmation and measurement of the share-based payment transaction in individual financial
statements of the acceptance service enterprise and the settlement enterprise shall be compared with the above principles.
26. Revenue
Accounting policies adopted for revenue recognition and measurement
Revenue is the total inflow of economic benefits that the Group has formed in its daily activities that will result in an increase in shareholders'
equities and has nothing to do with the capital invested by shareholders. Where the contract between the Group and its customers can meet the
following conditions at the same time, the revenue shall be confirmed when the customer owns the relevant control right of the commodity
(including labor service, the same below): all concerned parties have approved the contract and promised to fulfill their respective obligations; the
contract has specified rights and obligations of each concerned party related to commodity transfer or labor provision; the contract has clear
payment terms related to the transferred commodities; the contract is of the commercial essence, which means that performance of the contract
will change the risk, time distribution or amount of future cash flow of the Group; the consideration that the Group is entitled to obtain due to the
transfer of commodities to customers is likely to be recovered. To obtain the control right of relevant commodities means to be able to lead the
use of the commodities and obtain almost all economic benefits therefrom.
On the beginning date of the contract, the Group identifies the individual performance obligation specified in the contract and amortizes the
transaction price to each individual performance obligation based on the relative proportion of the individual sales price of the commodity
guaranteed in individual performance obligation. Variable consideration, significant financing part in the contract, non-cash consideration,
customer consideration payable, etc. have been taken into account the transaction price.
For contracts with quality assurance clauses, the Group analyzes the nature of the quality assurance provided by them. If the quality assurance
provides a separate service in addition to assuring customers that the commodities sold meet the established standards, the Group regards it as a
single performance obligation.
Transaction price is the consideration amount the Group is expected to be entitled to receive for the transfer of commodities or services to
customers, excluding payments received on behalf of third parties. The transaction price recognized by the Group does not exceed the amount for
which it is highly probable that the accumulated recognized revenue will not be reversed significantly when the relevant uncertainty is eliminated.
As for each individual performance obligation in the contract, if one of the following conditions is met, the Group shall confirm the transaction
price which is amortized into the individual performance obligation based on the performance progress within a relevant performance period as
the revenue: the customer obtains and consumes the economic benefits while the Group fulfills the performance obligation; the customer manages
to control the commodities in process while the Group fulfills the performance obligation. Commodities produced during the performance period
have irreplaceable purposes and the Group has the right to receive payment for the performance part which has been completed so far during the
entire contract period. The performance progress shall be confirmed based on the nature of commodities transferred by virtue of the input method
or the output method. When the performance progress cannot be confirmed reasonably, if it is predicted that the incurred cost of the Group can be
compensated, the revenue shall be confirmed based on the incurred cost amount until the performance progress can be confirmed reasonably.
If one of the above conditions cannot be met, the Group confirms the transaction price amortized to the individual performance obligation at
the time when the customer obtains the control right of relevant commodities as the revenue. When judging whether the customer has obtained the
control right of the commodity, the Group can consider the following signs: the enterprise has the current collection right of the commodity,
namely the customer is responsible for current payment obligation of the commodity; the enterprise has transferred the legal ownership of the
commodity to the customer, namely the customer has possessed the legal ownership of the commodity; the enterprise has transferred the real
commodity to the customer, namely the customer has possessed the real commodity; the enterprise has transferred main risks and rewards of the
commodity to the customer, namely the customer has obtained the main risks and rewards related to the ownership of the commodity; the customer
has accepted the commodity; other signs indicating that the customer has obtained the control right of the commodity.
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For sales with sales return clauses, when customers obtain control over related commodities, the Group recognizes revenue according to the
consideration amount expected to be received due to the transfer of commodities to customers (i.e., excluding the amount expected to be refunded
due to sales return), and recognizes liabilities as per the amount expected to be refunded due to sales return. Simultaneously, according to the
expected book value of the returned commodities at the time of transfer, the balance after deducting the expected cost of recovering the
commodities (including the impairment of the value of the returned commodities) is recognized as an asset, and the net cost of the above assets is
carried forward according to the book value of the transferred commodities at the time of transfer. On each balance sheet date, the Group re-
estimates the future sales returns, and if there is any change, it will be treated as a change in accounting estimates.
Supor's selling of commodities such as cookware and small domestic appliances is a type of performance obligation at a certain time point,
of which the revenue is recognized when the control over the commodities has been transferred to the customer. According to the agreement in
the sales contract, Supor mainly recognizes the control over commodity as having been transferred to the customer and recognizes relevant
commodity revenue when such commodity has left Supor's warehouses or its specified warehouses, delivered to the customer with acceptance
receipt issued, or such commodity has been delivered on board to the sea transport carrier with the customs declaration for export and bill of lading
obtained.
27. Contract cost
The incremental cost incurred by the Group to obtain the contract and expected to be recovered shall be recognized as an asset as the contract
acquisition cost. However, if the amortization period of the asset does not exceed one year, it shall be included into the current profits and losses
at the time of occurrence.
In the event that the cost incurred for the performance of the contract does not fall within the scope of the Accounting Standards for Business
Enterprises No. 14 - Revenue (Revised in 2017) and meets the following conditions at the same time, it shall be recognized as an asset as the
contract performance cost: ① The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing
expenses (or similar expenses), costs borne by the customer and other costs only incurred by the contract; ② The cost increases the Group's
resources to fulfill its performance obligations in the future; ③ The cost is expected to be recovered.
Assets recognized for contract acquisition cost and assets recognized for contract performance cost (hereinafter referred to as "assets related
to contract cost") shall be amortized on the same basis as the revenue recognition of commodities or services related to such assets and included
into current profits and losses.
Where the book value of assets related to contract costs is higher than the difference between the following two items, the Group shall
withdraw the impairment provisions of the excess part and recognize it as the asset impairment loss:
-Residual consideration expected to be obtained arising from the transfer of commodities or services related to the assets by the Group;
-Cost estimated to be occurred for the transfer of the relevant commodities or services.
28. Government subsidies
Government subsidies refer to monetary assets and non-monetary assets obtained by the Group from the government, excluding the capital
invested by the government as the investor with enjoying corresponding owners' equities. Government subsidies are divided into government
subsidies concerning assets and government subsidies concerning benefits. The government subsidy that is obtained by the Group used for
purchasing or acquisition and construction, or forming the long-term assets by other ways, which is confirmed the government subsidies concerning
assets; Other government subsidies shall be defined as the government subsidies concerning benefits. If the government document does not clear
the subsidy object, the subsidies will be divided based on the following modes into government subsidies concerning benefits and government
subsidies concerning assets: ① If the particular item of the subsidies is clear in the government document, it shall make a division according to
the relative proportion of expense amount of the formed assets in the budget of the particular item and the expense amount included into the cost,
review the division ratio at each balance sheet date and make changes if necessary; ② In the government document, for general terms only for the
purpose without specifying the particular item, it will be used as the government subsidies concerning benefits. If government subsidies are
monetary assets, they shall be measured according to the amount received or receivable. If not, they shall be measured according to their fair value;
if their fair value cannot be reliably obtained, they shall be measured according to their nominal amount. The government subsidies measured by
the nominal amount shall be directly included into the current profits and losses.
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When the Group actually receives the government subsidies, it shall be recognized and measured as the amount received. However, for the
end of the period, there are conclusive evidences that it can meet the relevant conditions stipulated by the financial support policy, and it is expected
that the financial support funds can be received, it shall be measured according to the amount receivable. The government subsidies measured as
the amount receivable shall comply with the following conditions: ① The subsidy receivable has been recognized by the competent government
department, or may be reasonably calculated according to the relevant provisions of the formally published financial fund management method,
and the estimated amount is free of significant uncertainty; ② It is based on the initiatively published financial support project by the local financial
department and its financial fund management method in accordance with the regulations of the Decree of Government Information Openness,
and this management method shall be favorable to the public (any enterprise qualified can apply), not just to the specified companies; ③ The
relevant subsidy documents have clearly promised the appropriation period, and the appropriation of this fund shall be safeguarded by the relevant
financial budget, so it can be reasonably guaranteed that it can be received within the specified period; ④ Other relevant conditions that shall be
satisfied (if any) based on the specific circumstances of the Group and the grant.
If the government subsidies concerning assets are recognized as deferred incomes and are included into the current profits and losses by
installments in a reasonable and systematic way within the service life of underlying assets. Government subsidies concerning benefits used to
compensate future relevant costs or losses will be recognized as deferred income, and included into the current profits and losses during the period
when the related costs or losses are recognized; those used to compensate relevant costs or losses that have occurred will be included into the
current profits and losses directly.
At the same time, it includes the government subsidies related to assets and incomes, and separates different parts for accounting treatment;
for those hard to be differentiated, it shall be taken as government subsidies concerning benefits as a whole.
The government subsidies concerning daily activities of the Group shall be included into other incomes, or used to offset the relevant costs
according to the economic business nature. government subsidies not concerning daily activities will be included into the non-operating income
and expenditure.
If the government subsidies confirmed need to be returned and there is the deferred income balance concerned, the book balance of relevant
deferred incomes shall be offset against, but the excessive part shall be included into the current profits and losses; In other circumstances, they
shall be included into the current profits and losses directly.
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) formed in the current period and previous periods shall be measured
by the expected amount of income tax payable (or returnable) calculated in accordance with the provisions of the tax law. The taxable income on
which the current income tax expenses are calculated shall be calculated after the corresponding adjustment of the pre-tax accounting profit in the
current reporting period in accordance with the relevant tax law.
(2) Deferred income tax assets/deferred income tax liabilities
The difference between the book value of some assets and liabilities and their tax bases, and the temporary difference caused by the difference
between the book value of the items that are not recognized as assets and liabilities but whose tax bases can be determined according to the tax
law, shall be used to recognize deferred income tax assets and deferred income tax liabilities with the balance sheet liability method.
For taxable temporary differences related to the initial recognition of goodwill and the initial recognition of assets or liabilities arising from
transactions that are neither enterprise merger nor affect accounting profit and taxable income (or deductible loss) at the time of occurrence, the
relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences related to the investments of
subsidiaries, associated enterprises and joint ventures, if the Group can control the time of reversal of the temporary differences, and the temporary
differences are likely not to be reversed in the foreseeable future, the relevant deferred income tax liabilities shall not be recognized. Except for
the above exceptions, the Group shall recognize all other deferred income tax liabilities incurred in the taxable temporary differences.
For deductible temporary differences related to the initial recognition of assets or liabilities arising from transactions that are neither enterprise
merger nor affect accounting profit and taxable income (or deductible loss) at the time of occurrence, the relevant deferred income tax assets shall
not be recognized. In addition, for the deductible temporary differences related to the investment of subsidiaries, associated enterprises and joint
ventures, if the temporary differences are not likely to be reversed in the foreseeable future, or it is not likely to obtain the taxable income used to
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offset the deductible temporary differences in the future, the relevant deferred income tax assets shall not be recognized. Except for the above
exceptions, the Group shall recognize the deferred income tax assets arising from other deductible temporary differences to the extent that taxable
income is likely to be obtained for deducting the deductible temporary differences.
For deductible losses and tax deductions that can be carried down in subsequent years, the corresponding deferred income tax assets shall be
recognized with the limit of the future taxable income which is likely to be obtained for deducting the deductible losses and tax deduction.
Deferred income tax assets and deferred income tax liabilities shall be calculated on the balance sheet date based on the applicable tax rate
during the period of expected recovery of relevant assets or clearing off relevant liabilities according to tax laws.
On the balance sheet date, it is required to recheck the book value of the deferred income tax assets. If sufficient taxable income is not likely
to be obtained for deducting the interest of deferred income tax assets in the future, the book value of deferred income tax assets shall be written
down. When it is very likely to obtain enough taxable income the write-down amount shall be reversed.
(3) Income tax expenses
The income tax expenses comprise the current income tax and deferred income tax.
Moreover, the other current income tax and deferred income tax expenses or earnings shall be included into the current profits and losses,
except for book value of goodwill which is adjusted on the basis of the deferred income tax caused by the enterprise merger, and that the current
income tax and the deferred income taxes related to other comprehensive incomes or transaction or affairs of direct recording in the shareholders'
equities are included into other comprehensive incomes or shareholders' equities.
(4) Offset of income tax
When it has the legal rights of settlement based on the net amount and it intends to make settlement based on net amount, obtain assets or
offset liabilities simultaneously, the current income tax assets and current income tax liabilities of the Group shall be presented based on the net
amount after offsetting.
When it has the legal rights of settling the current tax assets and current income tax liabilities based on the net amount, and the deferred
income tax assets and deferred income tax liabilities are related to income tax levied to the same subject of tax payment by the same tax collection
and administration department or are related to different taxpayer, but in each important period of deferred income tax assets and liabilities reverse
in the future, and when the involved taxpayer intend to settle the current income tax assets and liabilities based on the net amount or obtain assets
and pay off the liabilities at the same time, the Group's deferred income tax assets and deferred income tax liabilities shall be presented after
offsetting.
30. Lease
Lease refers to a contract in which it is agreed that the lessor transfers the use right of assets to the lessee to get corresponding consideration
within a certain period.
The Group evaluates whether the contract is used for lease or includes the lease on the contract commencement date. Where either party
thereto assigns one or more use rights of the recognized assets under its control in a certain period to get consideration, the contract is a lease or
includes a lease.
In order to determine whether the contract transfers the right of controlling the use of an identified asset for a certain period of time, the Group
conducts the following assessment:
- Whether the contract involves the use of the identified asset. The identified asset may be explicitly specified by the contract, or implicitly
specified when the asset is available for use by the customer, and the asset is physically distinguishable, or in the event that any production capacity
of the asset or other part of the asset is physically indistinguishable, but it substantially represents the full capacity of the asset, and thus enables
the customer to have access to almost all the economic benefits arising from the use of the asset. If the supplier of the asset has the substantial
right of replacing the asset throughout the period of use, then the asset is not attributed to an identified asset;
- Whether the lessee has the right to acquire almost all the economic benefits arising from the use of the identified asset during the period of
use;
- Whether the lessee has the right to direct the use of the identified asset during the period of use.
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If the contract contains multiple separate leases at the same time, the lessee and lessor will split the contract and have each separate lease
separately subject to accounting treatment. If the contract includes lease and non-lease parts at the same time, the lessee and the lessor will split
them separately.
(1) Lessee
At the beginning date of the lease term, the Group recognizes the right-of-use asset and lease obligation of the lease. The right-of-use asset is
initially measured at cost, including the initial measurement amount of the lease obligation, the lease payment paid at or before the beginning date
of the lease term (less the amount of lease incentives already granted), the initial direct expenses incurred, and the costs expected to be incurred to
demolish and remove the leased asset, restore the site where the leased asset is located or restore the leased asset to the state agreed upon in the
provisions of the lease.
The Group employs the straight-line method to depreciate right-of-use assets. If the ownership of the leased assets can be reasonably
confirmed to be obtained upon expiry of the lease term, the depreciation of leased assets shall be withdrawn by the Group during the remaining
service life thereof; Otherwise, the leased asset is depreciated during the shorter of the lease term and the remaining service life of the leased asset.
Impairment provisions for right-of-use assets shall be made in accordance with the accounting policies described in Note 5 21 "Impairment of
long-term assets".
The lease obligation is initially measured at the present value of the lease payment that has not been paid at the beginning date of the lease
term, and the discount rate is the implicit rate of the lease. If the implicit rate of the lease cannot be determined, the incremental borrowing rate of
the Group shall be adopted as the discount rate.
The Group calculates the interest expense of the lease obligation for each period of the lease term at a fixed periodic interest rate, which is
included into the current profits and losses or relevant asset costs. The variable lease payment not included into the measurement of lease
obligations will be included into the current profits and losses or relevant asset costs when it actually occurs.
In case of any of following circumstances after the beginning date of the lease term, the Group will remeasure lease obligations at the present
value of the lease payment after any change:
-Where the amount payable anticipated changes according to the guaranteed residual value;
-Where the index or ratio used for recognizing the lease payment changes;
-Where there is a change in the Group's assessment results of the option of purchase, renewal option or option of termination of lease or the
actual exercising of the termination of the renewal option or option of termination of lease is inconsistent with the original assessment result.
When the lease obligation is measured anew, the Group will adjust the book value of right-of-use assets accordingly. If the book value of the
right-of-use asset has been reduced to zero, but the lease obligation still needs to be further reduced, the Group will include the remaining amount
in the current profits and losses.
The Group chooses not to confirm the right-of-use asset and lease obligation for short-term lease (with a lease term not exceeding 12 months)
and low-value asset lease as well as includes related lease payment into the current profits and losses or relevant asset costs in each period within
the lease term pursuant to the straight-line method.
(2) Lessor
At the beginning date of the lease term, the Group divides leases into financing and operating leases. Financing lease refers to a lease in which
almost all the risks and rewards related to the ownership of the leased asset are essentially transferred, regardless of whether the ownership is
finally transferred or not. The operating lease refers to the other leases except for the financing lease.
The Group, as the lessor, provides classification of subleases based on the right-of-use assets created by the original lease rather than the
underlying assets of the original lease. If the original lease is a short-term lease and the Group chooses to apply the simplified treatment of the
above short-term lease to the original lease, then the Group classifies the sublease as an operating lease.
Under financing leases, at the beginning date of the lease term, the Group confirms financing lease receivables for financing lease and
derecognizes the financial leasing assets. The Group regards the net investment in a lease as the entry value of financing lease receivables at the
time of initial measurement of financing lease receivables. The net investment in a lease is the sum of the present value of unguaranteed residual
value and lease receipt not received yet on the beginning date of the lease term which is subject to discounting at the interest rate implicit in the
lease term.
The Group calculates and recognizes the Interest revenue in each period within the lease term according to a fixed periodic rate. The
derecognition and impairment of financing lease receivables shall be treated in accordance with the accounting policies described in Note 5 9
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Financial Instruments and 10 Financial Assets Impairment. The variable lease payment which is not included into the net lease investment shall
be included into current profits and losses when it actually occurs.
The lease receipts of operating lease are confirmed as rent revenue in each period within the lease term in light of straight-line method. The
Group capitalizes the initial direct expenses incurred in connection with operating leases, apportioned them over the lease term on the same basis
as the rent revenue recognition, and recorded into the current profits and losses by stages. The variable lease payment which is not included into
the lease receipt shall be included into current profits and losses when it actually occurs.
31. Related party
If one party controls or jointly controls the other party or imposes significant impact on the other party, and two or more parties are controlled
or jointly controlled by one party, these parties are related parties. Related party can be individual or enterprise. An enterprise that is only controlled
by the state but does not have other related party relationships does not constitute a related party.
In addition, the Company also determines the Group or related parties of the Company in accordance with the Administrative Measures for
the Disclosure of Information of Listed Companies promulgated by the CSRC.
32. Segment reporting
See XVI, 1 "Segment Information" for details of accounting policies related to segment reporting for details.
33. Other important accounting policies and estimates
(1) Repurchased shares
If the Group 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 owners' equities according to 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 face value, then the part lower shall be added
with capital reserve (share capital premium).
Shares repurchased by the Group shall be managed as treasury shares before they are cancelled or transferred; total expenditure of repurchased
shares shall be transferred as the cost of treasury shares.
When treasury shares are transferred, the part higher than their 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 the Group repurchase shares for the reason of equity incentive, it shall treat all expenses on shares repurchase as treasury shares while
repurchasing and make registration for future reference.
(2) Hedge accounting
Some financial instruments are used as hedging tools by the Group to avoid certain risks. For those hedges meeting requirements specified,
the Group will deal with them by hedge accounting method. The hedge of the Group is fair value hedge. The hedge for foreign exchange risk of
firm commitment is used as fair value hedge by the Group.
The hedging tool and the hedged item are formally specified by the Group 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 the
Group 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 gains and losses from non-transactional equity instruments (or their components) measured at the fair value with their changes
included into other comprehensive incomes are included into other comprehensive income. The gains or losses formed from the hedging risks of
the hedged item shall be included into the current profits and losses and the book value of the confirmed hedged items not measured at fair value
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shall be adjusted simultaneously. The gains or losses from the hedged item that are measured at fair value are included into the current profits and
losses and other comprehensive income without book value adjusting.
The hedge accounting is terminated when the hedging relationship is revoked by the Group, the hedging tool is expired or sold, the contract
is terminated or exercised, or the condition is out of qualification.
(3) Fair value measurement
Fair value, refers to the price that market participant can obtain or needs to pay after selling an asset or transferring a liability, among the
orderly transactions made on the measurement date. The Group measures relevant asset or liability and considers the characteristics of this asset
or liability at fair value; supposes the selling of assets or transfer of liabilities by market participant are orderly transaction under current market
conditions; supposes the orderly selling of assets or transfer of liabilities are carried out in the main market of relevant assets or liabilities; supposes
the transaction is made in the most favorable market for relevant assets or liabilities when there is no main market. The Group adopts the
assumptions that market participants use to maximum their economic benefits when they price assets or liabilities.
The Group judges whether the fair value at initial recognition equals to its transaction price according to transaction nature and the
characteristics of relevant assets or liabilities; if the transaction price is not equal to the fair value, relevant gains or losses will be included into the
current profits and losses, unless otherwise specified by relevant accounting standards.
The Group adopts the valuation technique that is applicable to the current situation and has enough available data and other information to
support. Mainly used valuation techniques include market approach, income approach and cost method. In the application of valuation techniques,
relevant observable input values shall be used first, and unobserved input values can only be used when relevant observable input values cannot
be obtained or it is not feasible to obtain them.
Input values used by the Group for fair value measurement is divided into 3 levels. The first level of input values will be used first, and then
the second level and the third level. First level of input values are the quotations of same assets or liabilities that can be obtained on the measurement
date and are not adjusted in the active market; the second level of input values are the direct or indirect observable input values of relevant assets
or liabilities other than the first level of input values; the third level of input values are the unobservable input values of relevant assets or liabilities.
The Group measures non-financial assets with fair value, considers market participant's ability to use this asset in the best way to generate
economic benefits, or the ability to sell this asset to other market participants who can use this asset in the best way to generate economic benefits.
To measure a liability with fair value, the Group supposes this liability is transferred to other market participants on the measurement date, and
further exists after transfer, and the market participant, who is the transferee, performs obligations. To measure one's own equity instrument with
fair value, suppose this equity instrument is transferred to other market participants on the measurement data, and further exits after transfer, and
the market participant, as the transferee, obtains relevant rights to this instrument and undertakes corresponding obligations.
34. Change of important accounting policies and estimates
(1) Change of important accounting policies
Applicable □ Not applicable
Content and reasons for changes in accounting policies
In 2022, the Group implemented the relevant provisions and guidelines of in Accounting Standards for Business Enterprises issued by the Ministry
of Finance in recent years, mainly including:
-Provisions of "Accounting treatment for enterprises to sell products or by-products produced before fixed assets reach the preset serviceable state
or during R&D" ("Accounting treatment for trial operation sales") in Interpretation No.15 of Accounting Standards for Business Enterprises (CK
[2021] No.35) (Interpretation No.15);
-Provisions in Interpretation No.15 "Judgement on Loss Contracts";
-Provisions of "Accounting Treatment on Income Tax Impact of Dividends Related to Financial Instruments Classified as Equity Instruments by
Issuers" in Accounting Standards for Business Enterprises Interpretation No.16 (CK [2022] No.31) (Interpretation No.16);
-Provisions on "Accounting treatment of enterprises to change cash-settled share-based payments to equity-settled share-based payments" in
Interpretation No.16.
The adoption of the requirements has not had a significant impact on the financial condition and operating results of the Group.
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(2) Change of important accounting estimates
□ Applicable Not applicable
VI. Taxes
1. Main taxes and tax rates
Tax Tax base Tax rate
Taxable income is calculated at output tax rates of 0, 6%, 9%, and 13%, and
The taxable revenue from sales of
VAT VAT is calculated based on the difference after deducting the input tax
commodities or rendering of services
allowable for the current period.
Urban maintenance and
VAT payable 7%
construction tax
Corporate income tax rate is 25%. Shaoxing Supor, Zhejiang WMF and
Hainan Supor E-Commerce Company are taxed at a preferential tax rate of
Enterprise income tax Taxable income 15%. Wuhan Recycling and Shanghai Marketing are taxed at a preferential tax
rate of 20%.Overseas subsidiary Indonesian Company is taxed at a 22% rate,
Supor Vietnam and AFS are taxed at 20%, and SEADA is taxed at 17%.
Education surcharge VAT payable 3%
Local education
VAT payable 2%
surcharge
1.2% of the residual value after
deducting 30% of the original value of
the property is calculated and paid in
Housing property tax case of ad valorem; for housing property 1.2%、12%
levied on the basis of rent, housing
property tax is levied at the rate of 12%
of rent revenue.
2. Tax preferences
Pursuant to GKHZ [2020] No. 32 document, Shaoxing Supor ejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd and Zhejiang
WMF renewed the hi-tech enterprise qualification in 2022 and is entitled to enjoy the preferential tax rate of 15% for the three-year period starting
from January 1, 2022.
According to the Enterprise Income Tax Law of the People's Republic of China and its implementation regulations, the Notice on Preferential
Policies for Enterprise Income Tax in Hainan Free Trade Port (CS [2020] No.31) as well other provisions, business income tax will be levied at
a rate of 15% for encouraged industrial enterprises registered and substantially operating in the Hainan Free Trade Port from January 1, 2020 to
December 31, 2024. Meeting the e-commerce in the encouraged industries catalogue, Hainan Supor E-Commerce Company applies the preferential
tax rate of 15% in 2022.
In accordance with the Announcement of the State Taxation Administration on Matters Related to the Implementation of the Preferential
Income Tax Policies for the Development of Small and Low-profit Enterprises and Individual Business (State Tax [2021]-No. 8), from January 1,
2021 to December 31, 2022, for the part of the annual taxable income of small and low-profit enterprises that does not exceed RMB 1 million, a
reduced rate of 12.5% shall be applied, and the corporate income tax shall be paid at a tax rate of 20%. Meanwhile, according to the Announcement
of the Ministry of Finance and State Taxation Administration on Further Implementation of Preferential Income Tax Policies for Small and Micro-
sized Enterprises (Finance and Taxation (2022)-No. 13), from January 1, 2022 to December 31, 2024, for the part of the annual taxable income of
small and low-profit enterprises that exceeds RMB 1 million but less than RMB 3 million yuan, a reduced rate of 25% shall be applied, and the
corporate income tax shall be paid at a tax rate of 20%. Among which, Wuhan Recycling and Shanghai Marketing meet the standards of small and
low-profit enterprises in 2022, therefore the preferential tax rate at 20% is applicable in 2022.
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VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Item Closing balance Opening balance
Cash on hand 56,591.47 71,122.80
Cash in bank 3,215,677,104.23 2,420,563,810.46
Other monetary capitals 347,407,212.05 233,417,484.21
Total 3,563,140,907.75 2,654,052,417.47
Including: deposited overseas 207,979,588.92 78,040,992.57
Other remarks:
Note: 1) On December 31, 2022, the bank deposits with restricted use were frozen at RMB 8,541.04 (December 31, 2021: RMB 263,468.43) for
the cancellation of the branch bank account, RMB 82,189.64 (December 31, 2021: none) for the change of industrial and commercial legal
person, RMB 12,546,000.00 (December 31, 2021: none) for the term deposits pledged by issuing bank acceptance bills, and the remaining bank
deposits of RMB 3,203,040,373.55 were not restricted,among them, more than three months term deposits of RMB 841,466,620.81.
2) As at December 31, 2022, other monetary capitals at the end of the period include RMB 254,129,233.86 (December 31, 2021: RMB
150,545,967.12) of the security for restricted acceptance bills, RMB 975,570.02 (December 31, 2021: RMB 1,511,302.86) of the security for e-
commerce platforms, RMB 58,000,000.00 (December 31, 2021: RMB 58,000,000.00) of the security for the deposits of the advance payment
financing business, and RMB 34,302,408.17 (December 31, 2021: RMB 23,360,214.23) of the non-restricted currency funds of the Alipay wallet,
JD wallet, TikTok wallet, securities settlement accounts, futures settlement accounts and Youzan account, etc.
3) As at December 31, 2022, the monetary capital deposited by the Group in Vietnam amounts to RMB 193,083,117.24 (December 31, 2021:
equivalent to RMB 72,031,237.91); The monetary capital deposited in Singapore amounted to RMB 3,754,734.88 (December 31, 2021: amounted
to RMB 2,195,848.27); the monetary capital deposited in Indonesia amounts to RMB 11,141,736.80 (December 31, 2021: equivalent to RMB
3,813,906.39).
2. Transactional financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets measured at the fair value with their changes included into the current
431,382,527.79 180,312,742.31
profits and losses
Including:
- Short-term financial products 431,382,527.79 180,312,742.31
Total 431,382,527.79 180,312,742.31
Other remarks:
As at December 31, 2022, the financial assets measured at the fair value with their changes included into the current profits and losses are the
financial products purchased by the Company, amounting to RMB 430,000,000.00 (December 31, 2021: RMB 180,000,000.00). These financial
products with floating income, and linked to interest rates and exchange rates, etc., and the corresponding gains from changes in fair value, i.e.
RMB 1,382,527.79 (December 31, 2021: RMB 312,742.31), are recognized at the end of the current period.
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3. Notes receivable
(1) Details on categories
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 27,325,952.95 54,879,357.24
Total 27,325,952.95 54,879,357.24
Unit: RMB
Closing balance Opening balance
Provision for bad Provision for bad
Categories Book balance Book balance
debts debts
Book value Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount proportion
proportion
Including:
Notes receivable
for provision for
bad debts made on 27,325,952.95 100.00% 27,325,952.95 54,879,357.24 100.00% 54,879,357.24
the basis of
portfolio
Including:
Portfolio: bank
27,325,952.95 100.00% 27,325,952.95 54,879,357.24 100.00% 54,879,357.24
acceptance bill
Total 27,325,952.95 100.00% 27,325,952.95 54,879,357.24 100.00% 54,879,357.24
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) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Categories Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Bank acceptance
bill
Wherein, important amounts of provision for bad debts collected or reversed in the current period:
□ Applicable Not applicable
(3) Notes receivables that the Company has pledged at the end of the period
As of December 31, 2022, the Group had no notes receivable pledged (December 31, 2021: None).
(4) Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
Unit: RMB
Closing balance not
Item Closing balance derecognized
derecognized
Bank acceptance bill 22,383,800.87
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Total 22,383,800.87
Other remarks:
By December 31, 2022, Supor's undue and endorsed notes receivable of RMB 22,383,800.87 (December 31, 2021: RMB 53,979,357.24). have
not been recognized as notes transferred to the suppliers to settle the amount payable. This is mainly because that, according to the management,
the risks and remunerations attached to the ownership of the notes have not been actually transferred. The book values of the said undue notes
receivable approximate their fair values. The said undue notes receivable will get mature within 1 year.
(5) Notes the Company transfers to accounts receivable due to the drawer's failure to perform the contract at the end
of the period
As at December 31, 2022, the Group has not any notes transferred to accounts receivable due to non-performance of drawers. (December 31, 2021:
None)
4. Accounts receivable
(1) Details on categories
Unit: RMB
Closing balance Opening balance
Categories Book balance Provision for bad debts Book balance Provision for bad debts
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable
for
provision 41,463.78 0.00% 41,463.78 100.00% 4,523,328.43 0.16% 4,523,328.43 100.00%
made on an
individual
basis
Including:
Accounts
receivable
for
provision 2,008,279,020.6 1,926,518,118. 117,482,550. 2,716,945,985.
100.00% 81,760,902.29 4.07% 2,834,428,535.98 99.84% 4.14%
for bad 7 38 65 33
debts made
on the basis
of portfolio
Including:
Portfolio 1:
1,929,487,537.0 1,847,805,426. 117,399,781. 2,634,259,287.
age 96.07% 81,682,110.81 4.23% 2,751,659,068.87 96.92% 4.27%
3 22 18 69
portfolio
Portfolio 2:
low-risk 78,791,483.64 3.93% 78,791.48 0.10% 78,712,692.16 82,769,467.11 2.92% 82,769.47 0.10% 82,686,697.64
portfolio
2,008,320,484.4 1,926,518,118. 122,005,879. 2,716,945,985.
Total 100.00% 81,802,366.07 4.07% 2,838,951,864.41 100.00% 4.30%
5 38 08 33
Provision for bad debts made on an individual basis:
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion Reasons
It is not expected to be recovered, so the provision for bad
Customer A 41,463.78 41,463.78 100.00%
debts is fully accrued.
Total 41,463.78 41,463.78
Provision for bad debts made on the basis of portfolio: Portfolio 1: age portfolio
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Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (including 1 year) 1,924,752,692.02 80,644,664.54 4.19%
1-2 years (including 2 years) 3,725,554.00 298,044.32 8.00%
2-3 years (including 3 years) 255,548.22 38,332.23 15.00%
3-4 years (including 4 years) 96,637.91 48,318.96 50.00%
4-5 years (including 5 years) 21,770.61 17,416.49 80.00%
Over 5 years 635,334.27 635,334.27 100.00%
Total 1,929,487,537.03 81,682,110.81
Explanation on the basis for determining such portfolio:
The expected credit loss rate is calculated upon the experience in actual credit loss, and adjusted based on the difference between the economy
during the historic period of data collection, the current economy and the economy during the duration expected by Supor.
If provision for bad debts for accounts receivable is made based on the general model of expected credit losses, 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 Book balance
Within 1 year (including 1 year) 2,003,575,860.86
1-2 years 3,735,332.58
2-3 years 255,548.22
Over 3 years 753,742.79
3-4 years 96,637.91
4-5 years 21,770.61
Over 5 years 635,334.27
Total 2,008,320,484.45
(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Categories Opening balance Closing balance
Accrued Collected or reversed Written off Others
Provision for bad debts for
122,005,879.08 -35,810,880.38 -4,577,358.50 184,725.87 81,802,366.07
accounts receivable
Total 122,005,879.08 -35,810,880.38 -4,577,358.50 184,725.87 81,802,366.07
Increased provision for bad debts of RMB 184,725.87 for conversion difference in foreign currency statement caused by the change in exchange
rate.
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(3) Accounts receivable actually written off in current period
Unit: RMB
Item Amount
Accounts receivable actually written off 4,577,358.50
Including significant accounts receivable written off:
Unit: RMB
Write-off Whether the amount
Type of accounts
Entity name Amount Reason procedures was from related
receivable
performed transactions
Goods payment cannot be recovered because of the Approval by the
Customer B Goods payment 4,523,328.43 No
Company's capital chain rupture management
Goods payment cannot be recovered because of the Approval by the
Customer C Goods payment 54,030.07 No
Company's capital chain rupture management
Total 4,577,358.50
(4) Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of accounts Proportion in the total closing balance of Closing balance of provision
Entity name
receivable accounts receivable for bad debts
SEB S.A. and its subsidiaries 1,006,987,000.47 50.14% 35,246,269.24
Customer D 343,118,398.18 17.08% 17,157,396.02
Customer E 94,146,045.21 4.69% 4,802,629.23
Customer F 51,675,886.25 2.57% 2,583,794.31
Customer G 41,909,033.73 2.09% 41,909.03
Total 1,537,836,363.84 76.57%
5. Receivables financing
Unit: RMB
Item Closing balance Opening balance
Notes receivable 235,957,044.34 3,312,225.62
Total 235,957,044.34 3,312,225.62
Other remarks:
The Group endorses or discounts certain bank acceptance bills by the needs of day-to-day fund management. Taking into account of the amount
and frequency of endorsement or discount of bank acceptance bills, the Group determines that the objective of such business model is to receive
contractual cash flows and sell the notes receivable simultaneously, and therefore, such notes receivable are classified into financial assets
measured at the fair value with their changes included into other comprehensive incomes, and presented as receivables financing.
As at December 31, 2022, the Group had no receivables financing pledged. (December 31, 2021: None).
Changes in receivables financing and its fair value during the period
□ Applicable Not applicable
If receivables financing is made based on the general model of expected credit losses, please disclose the relevant information about the impairment
126
2022 Annual Report of Zhejiang Supor Co., Ltd.
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 derecognized Closing balance not derecognized
Bank acceptance bill 3,024,858,504.69
Total 3,024,858,504.69
Other remarks:
In order to settle part of the payables, the Group endorses the equal amount of undue notes receivable to the suppliers, and the management of the
Group considers that certain undue notes meet the conditions, that is, almost all risks and remuneration pertaining to ownership have been
transferred and meanwhile the current obligations of the relevant payables have been fully discharged, thus the relevant notes and payables are
derecognized. The possible greatest loss undertaken by the Group for the continued involvement therein is the amount of the undue notes receivable
endorsed by the Group to suppliers. The said undue notes receivable will get mature within 1 year.
6. Advance payment
(1) Listing by ages
Unit: RMB
Closing balance Opening balance
Ages
Amount Proportion Amount Proportion
Within 1 year 335,655,809.04 98.83% 384,209,532.57 99.70%
1-2 years 3,123,427.28 0.92% 988,460.68 0.26%
2-3 years 665,000.00 0.20% 6,000.00 0.00%
Over 3 years 165,310.70 0.05% 163,869.60 0.04%
Total 339,609,547.02 385,367,862.85
Other remarks:
Aging is calculated from the date of confirmation of accounts prepaid.
(2) Advance payment of the top 5 closing balances by prepayment objects
Proportion in the balance of
Entity name Book balance
advance payment
Supplier A 42,311,341.01 12.46%
Supplier B 32,780,501.21 9.65%
Supplier C 22,531,620.00 6.63%
Supplier D 17,267,872.77 5.08%
Supplier E 16,671,812.94 4.91%
Subtotal 131,563,147.93 38.73%
7. Other receivables
Unit: RMB
127
2022 Annual Report of Zhejiang Supor Co., Ltd.
Item Closing balance Opening balance
Other receivables 16,373,697.26 12,159,756.67
Total 16,373,697.26 12,159,756.67
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 10,692,374.84 9,533,739.58
Temporary payment receivable 6,434,897.15 2,817,399.32
Personal deposit 2,382,649.26 1,550,886.08
Tax refund receivable 1,237,388.33 1,237,370.65
Total 20,747,309.58 15,139,395.63
2) Provision for bad debts
Unit: RMB
Phase I Phase II Phase III
Provision for bad debts Expected credit loss in the Expected credit loss in the Total
Expected credit loss in
entire duration (without credit entire duration (credit
future 12 months
impairment) impairment)
Balance on January 1, 2022 2,979,638.96 2,979,638.96
Balance on January 1, 2022 in the
current period
Withdrawal in the current period 1,388,421.68 1,388,421.68
Other changes 5,551.68 5,551.68
Balance on December 31, 2022 4,373,612.32 4,373,612.32
Other remarks:
Increased provision for bad debts of RMB 5,551.68 for conversion difference in foreign currency statement caused by the change in exchange rate.
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not applicable
Disclosure by ages
Unit: RMB
Ages Book balance
Within 1 year (including 1 year) 13,205,781.19
1-2 years 3,187,388.71
2-3 years 1,104,417.30
Over 3 years 3,249,722.38
128
2022 Annual Report of Zhejiang Supor Co., Ltd.
3-4 years 647,421.24
4-5 years 848,436.61
Over 5 years 1,753,864.53
Total 20,747,309.58
3) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Categories Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Provision for bad debts of other
2,979,638.96 1,388,421.68 5,551.68 4,373,612.32
receivables
Total 2,979,638.96 1,388,421.68 5,551.68 4,373,612.32
4) Other receivables details of the top 5 closing balances by debtors
Unit: RMB
Proportion in the Closing balance
Entity name Nature of receivables Closing balance Ages total closing balance of provision for
of other receivables bad debts
Temporary payment
Customer H 1,652,511.36 Within 1 year 7.96% 82,625.57
receivable
Temporary paragraph
Customer I 1,480,196.99 Within 1 year, 1-3 years 7.13% 148,509.85
receivable/deposit as security
Tax refund receivable Tax refund receivable 1,235,931.88 Within 1 year, 1-2 years 5.96%
Customer J Deposit as security 1,180,000.00 1-2 years 5.69% 94,400.00
Customer K Deposit as security 1,000,000.00 Within 1 year 4.82% 50,000.00
Total 6,548,640.23 31.56% 375,535.42
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
(1) Inventory classification
Unit: RMB
Closing balance Opening balance
Inventory
Inventory
depreciation
Item depreciation reserves
reserves or
Book balance or impairment Book value Book balance Book value
impairment
provision for contract
provision for
performance cost
contract
129
2022 Annual Report of Zhejiang Supor Co., Ltd.
performance cost
Raw materials 446,471,515.87 14,369,922.27 432,101,593.60 600,492,823.00 10,291,195.98 590,201,627.02
Unfinished products 84,088,800.88 84,088,800.88 106,157,761.25 106,157,761.25
Finished products 1,885,938,291.03 19,558,744.71 1,866,379,546.32 2,289,813,383.66 14,771,911.61 2,275,041,472.05
Low value
101,274,579.44 379,610.26 100,894,969.18 107,094,627.93 29,787.94 107,064,839.99
consumables
Packing materials 11,457,946.44 11,457,946.44 18,051,355.02 18,051,355.02
Total 2,529,231,133.66 34,308,277.24 2,494,922,856.42 3,121,609,950.86 25,092,895.53 3,096,517,055.33
(2) Inventory depreciation reserves and impairment provision for contract performance cost
Unit: RMB
Increase Decrease
Item Opening balance Reversal or write- Closing balance
Accrued Others Others
off
Raw materials 10,291,195.98 9,419,750.56 203,318.55 5,544,342.82 14,369,922.27
Finished products 14,771,911.61 14,511,022.10 21,211.02 9,745,400.02 19,558,744.71
Low value
29,787.94 379,610.26 29,787.94 379,610.26
consumables
Total 25,092,895.53 24,310,382.92 224,529.57 15,319,530.78 34,308,277.24
Other remarks:
There is an increased inventory depreciation reserves of RMB 224,529.57 for conversion difference in foreign currency statement caused by the
change in exchange rate.
9. Non-current assets due within one year
Unit: RMB
Item Closing balance Opening balance
Other debt investments due within one year 32,157,534.25
Total 32,157,534.25
Important other debt investments
Unit: RMB
Closing balance Opening balance
Creditor's
items Effective Effective
Face value Coupon rate Expiry date Face value Coupon rate Expiry date
interest rate interest rate
The Company
- Bank of
China December 11,
30,000,000.00 3.50% 3.34%
negotiable 2023
certificates of
deposit
Total 30,000,000.00
Other remarks:
10. Other current assets
Unit: RMB
130
2022 Annual Report of Zhejiang Supor Co., Ltd.
Item Closing balance Opening balance
Return cost receivable 14,266,301.12 13,377,148.99
Creditable VAT 49,236,636.79 171,398,751.97
Term deposit 381,101,095.89 1,863,761,369.84
Others 6,381,982.96 6,490,111.83
Total 450,986,016.76 2,055,027,382.63
Other remarks:
Term deposits more than three months are for the purpose of earning interest, in December 31, 2022, of which: the principal amount is RMB
350,000,000.00 (December 31, 2021: RMB 1,700,000,000.00) and the interest receivable is RMB 31,101,095.89 (December 31, 2021: RMB
163,761,369.84).
11. Other debt investments
Unit: RMB
Loss
provisions that
are
Fair value Accumulated
Opening Accrued cumulatively
Item changes in the Closing balance Cost fair value Remarks
balance interest determined in
current period changes
other
comprehensive
incomes
Negotiable
certificates of 298,191,205.49 33,064,246.58 1,056,952,424.68 1,023,888,178.10
deposit
Minus: Part
due within one -2,157,534.25 -32,157,534.25 -30,000,000.00
year
Total 298,191,205.49 30,906,712.33 1,024,794,890.43 993,888,178.10
Other important debt investment
Unit: RMB
Closing balance Opening balance
Other creditors' rights Effective
items Coupon Effective Coupon
Face value Expiry date Face value interest Expiry date
rate interest rate rate
rate
The Company - Bank
March 24,
of China negotiable 40,000,000.00 3.85% 3.71% March 24, 2024 40,000,000.00 3.85% 3.71%
2024
certificates of deposit
The Company - Bank
of China negotiable 60,000,000.00 3.85% 3.73% April 16, 2024 60,000,000.00 3.85% 3.73% April 16, 2024
certificates of deposit
The Company - Bank
of China negotiable 10,000,000.00 3.85% 3.80% April 2, 2024 10,000,000.00 3.85% 3.80% April 2, 2024
certificates of deposit
The Company - Bank
March 25,
of China negotiable 60,000,000.00 3.85% 3.78% March 25, 2024 60,000,000.00 3.85% 3.78%
2024
certificates of deposit
The Company - Bank
of China negotiable 20,000,000.00 3.85% 3.78% April 9, 2024 20,000,000.00 3.85% 3.78% April 9, 2024
certificates of deposit
131
2022 Annual Report of Zhejiang Supor Co., Ltd.
Shaoxing Supor
Housewares - China
February 8,
Guangfa Bank 100,000,000.00 3.60% 3.50%
2024
negotiable certificates
of deposit
Shaoxing Supor -
Bank of China February 4,
30,000,000.00 3.85% 3.57%
negotiable certificates 2024
of deposit
Shaoxing Supor -
Bank of China February 4,
30,000,000.00 3.85% 3.57%
negotiable certificates 2024
of deposit
Shaoxing Supor -
Bank of Ningbo November 10,
10,000,000.00 3.55% 3.30%
negotiable certificates 2024
of deposit
Shaoxing Supor
Housewares - China
Guangfa Bank 200,000,000.00 3.55% 3.43% April 21, 2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - China
Guangfa Bank 50,000,000.00 3.55% 3.36% March 11, 2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - China
Guangfa Bank 100,000,000.00 3.45% 3.34% July 25, 2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - Bank of October 17,
20,000,000.00 3.40% 3.29%
Ningbo negotiable 2025
certificates of deposit
Shaoxing Supor
Housewares - China
Guangfa Bank 100,000,000.00 3.45% 3.30% July 28, 2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - China
Guangfa Bank 100,000,000.00 3.45% 3.22% August 4, 2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - China
Guangfa Bank 150,000,000.00 3.35% 3.21% August 4, 2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - ICBC
15,000,000.00 3.35% 3.23% March 30, 2025
negotiable certificates
of deposit
Total 995,000,000.00 290,000,000.00
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not applicable
132
2022 Annual Report of Zhejiang Supor Co., Ltd.
12. Long-term equity investment
Unit: RMB
Increase/decrease
Closing Closing
Invested Opening balance Adjustment in Cash balance balance of
Investment profit Changes in Accrued
unit (book value) Investment Investment other dividend/profit (book impairment
or loss recognized other impairment Others
increased decreased comprehensive declared for value) provision
by equity method equity provision
income distribution
I. Joint Venture
II. Associated Enterprise
Wuhan
Anzai 62,196,139
65,600,611.64 -3,404,472.11
Cookware .53
Co., Ltd.
62,196,139
Subtotal 65,600,611.64 -3,404,472.11
.53
62,196,139
Total 65,600,611.64 -3,404,472.11
.53
13. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1,303,075,391.03 1,291,902,992.54
Total 1,303,075,391.03 1,291,902,992.54
(1) Fixed assets
Unit: RMB
Buildings and Transport
Item General equipment Special equipment Total
structures 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 39,081,769.63 22,770,082.49 78,542,444.00 3,367,702.88 143,761,999.00
(1) Acquisition 28,628,869.34 15,617,091.41 44,635,305.84 3,367,702.88 92,248,969.47
(2) Transferred in from
10,452,900.29 7,152,991.08 33,907,138.16 51,513,029.53
construction in progress
(3) Increase from enterprise
merger
3. Decrease 4,090,068.62 5,741,299.42 28,734,632.30 3,195,154.34 41,761,154.68
(1) Disposal or scrapping 4,090,068.62 5,383,739.18 24,906,845.00 3,195,154.34 37,575,807.14
(2) Transfer into construction
357,560.24 3,827,787.30 4,185,347.54
in progress
4. Impact of change in
1,799,206.58 491,466.79 3,822,041.58 121,415.43 6,234,130.38
exchange rate
5. Closing balance 1,223,555,061.57 296,185,619.01 970,045,460.97 32,943,632.66 2,522,729,774.21
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2022 Annual Report of Zhejiang Supor Co., Ltd.
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 42,658,435.01 27,452,441.09 55,132,842.15 3,020,592.22 128,264,310.47
(1) Provision 42,658,435.01 27,452,441.09 55,132,842.15 3,020,592.22 128,264,310.47
3. Decrease 40,194.38 4,766,973.87 26,268,133.70 2,746,329.77 33,821,631.72
(1) Disposal or scrapping 40,194.38 4,560,976.39 22,702,790.46 2,746,329.77 30,050,291.00
(2) Transfer into construction
205,997.48 3,565,343.24 3,771,340.72
in progress
4. Impact of change in
579,229.15 307,152.06 1,636,326.51 97,189.74 2,619,897.46
exchange rate
5. Closing balance 374,701,516.70 215,850,570.93 602,573,724.20 26,528,571.35 1,219,654,383.18
III. Impairment Provision
IV. Book Value
1. Closing book value 848,853,544.87 80,335,048.08 367,471,736.77 6,415,061.31 1,303,075,391.03
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 procedures
Function dormitory of Shaoxing Supor 36,306,564.45
are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
No.3 plant of Shaoxing Supor 26,701,849.53
are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
No.1 plant of Shaoxing Supor 24,511,146.60
are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
No.8 plant of Shaoxing Supor 29,145,584.35
are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
Function cafeteria of Shaoxing Supor 12,098,228.78
are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
No.12 plant of Shaoxing Supor 12,299,011.19
are fulfilled, the property ownership certificate shall be processed uniformly
Transformer substation (35 kV) of After all projects are completed, and the completion and settlement procedures
3,270,698.66
Shaoxing Supor are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
No.13 plant of Shaoxing Supor 15,961,306.05
are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
No.14 plant of Shaoxing Supor 24,354,643.08
are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
No.15 plant of Shaoxing Supor 42,322,410.13
are fulfilled, the property ownership certificate shall be processed uniformly
After all projects are completed, and the completion and settlement procedures
Forklift charging room of Shaoxing Supor 894,910.10
are fulfilled, the property ownership certificate shall be processed uniformly
Transfer procedures of land use right certificate are not settled due to land
Generator room of P&R Products 1,784.89
ownership issue
Water pump building and structures of Transfer procedures of land use right certificate are not settled due to land
93,876.04
P&R Products ownership issue
Extended plant for bakelite workshop of Transfer procedures of land use right certificate are not settled due to land
207,208.55
P&R Products ownership issue
Transfer procedures of land use right certificate are not settled due to land
Polishing workshop of P&R Products 97,920.00
ownership issue
134
2022 Annual Report of Zhejiang Supor Co., Ltd.
Total 228,267,142.40
14. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 12,005,654.73 26,482,779.31
Total 12,005,654.73 26,482,779.31
(1) Details of construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Piecemeal projects 82,038.73 82,038.73 18,454,384.74 18,454,384.74
Equipment payment 909,049.00 909,049.00 2,760,998.31 2,760,998.31
Zhejiang WMF factory project 5,259,590.60 5,259,590.60
Warehouse project of Shaoxing
11,014,567.00 11,014,567.00 7,805.66 7,805.66
Supor
Total 12,005,654.73 12,005,654.73 26,482,779.31 26,482,779.31
(2) Changes in significant projects
Unit: RMB
Including:
Capital source
Interest
Accumulated amount of
Accumulated Completion capitaliza
Opening Transferred to Other Closing amount of interest
Items Budgets Increase investment to percentage tion rate
balance fixed assets decrease balance borrowing cost capitalization
budget (%) in current
capitalization in current
period
period
capital
Self-owned
Piecemeal 18,454,384 23,291,5 41,663,877.5
projects
82,038.73
.74 31.52 3
capital
Self-owned
Equipment 2,760,998. 80,249.9
payment 1,932,199.30 909,049.00
31 9
capital
Self-owned
Zhejiang
WMF 248,276, 5,259,590. 2,657,36
7,916,952.70 97.02% 100.00%
factory 513.76 60 2.10
project
Warehous
capital
Self-owned
e project
13,578,3 11,006,7 11,014,567
of 7,805.66 81.12% 81.12%
53.00 61.34 .00
Shaoxing
Supor
135
2022 Annual Report of Zhejiang Supor Co., Ltd.
261,854, 26,482,779 37,035,9 51,513,029.5 12,005,654
Total
866.76 .31 04.95 3 .73
Other remarks:
The project budget of RMB 248,276,513.76 for the Zhejiang WMF factory in Yuhuan City includes RMB 67,164,093.75 for the land use rights
on December 31, 2022.
15 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 56,290,431.62 56,290,431.62
3. Decrease 20,261,411.47 20,261,411.47
4. Exchange rate effect 37,442.95 231,046.53 268,489.48
5. Closing balance 263,207,787.03 3,228,879.08 266,436,666.11
II. Accumulated Depreciation
1. Opening balance 34,518,604.93 91,907.42 34,610,512.35
2. Increase 47,472,224.62 99,084.01 47,571,308.63
(1) Provision 47,472,224.62 99,084.01 47,571,308.63
3. Decrease 6,506,356.74 6,506,356.74
(1) Disposal 6,506,356.74 6,506,356.74
4. Exchange rate effect 28,017.02 14,222.03 42,239.05
5. Closing balance 75,512,489.83 205,213.46 75,717,703.29
III. Impairment Provision
IV. Book Value
1. Closing book value 187,695,297.20 3,023,665.62 190,718,962.82
2. Opening book value 192,622,719.00 2,905,925.13 195,528,644.13
16. Intangible assets
(1) Details
Unit: RMB
Item Land use right Trademark use 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 11,300,065.22 11,300,065.22
(1) Acquisition 11,300,065.22 11,300,065.22
(2) In-house R&D
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2022 Annual Report of Zhejiang Supor Co., Ltd.
(3) Increase from enterprise merger
(4) Transferred in from construction in
progress
3. Decrease 189,655.19 189,655.19
(1) Disposal 189,655.19 189,655.19
4. Impact of change in exchange rate 278,037.68 48,903.62 326,941.30
5. Closing balance 475,027,652.21 47,328,811.32 98,175,198.47 620,531,662.00
II. Accumulated Amortization
1. Opening balance 88,398,664.67 28,352,236.77 40,142,545.84 156,893,447.28
2. Increase 9,973,743.25 4,732,881.13 8,849,083.33 23,555,707.71
(1) Provision 9,973,743.25 4,732,881.13 8,849,083.33 23,555,707.71
3. Decrease 64,798.86 64,798.86
(1) Disposal 64,798.86 64,798.86
4. Impact of change in exchange rate 94,223.70 35,349.01 129,572.71
5. Closing balance 98,466,631.62 33,085,117.90 48,962,179.32 180,513,928.84
III. Impairment Provision
IV. Book Value
1. Closing book value 376,561,020.59 14,243,693.42 49,213,019.15 440,017,733.16
2. Opening book value 386,350,949.86 18,976,574.55 46,873,338.98 452,200,863.39
At the end of this period, the proportion of intangible assets formed through internal R&D in the balance of intangible assets is 0.00%.
17. Deferred income tax assets/deferred income tax liabilities
(1) Un-offset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Impairment provision of assets 104,854,363.88 23,059,580.50 140,835,930.67 31,223,473.17
Profits not realized by internal transaction 80,178,943.70 19,496,741.80 65,189,056.55 16,265,944.20
Deductible losses 16,402,564.88 3,626,289.50 11,483,414.26 2,526,351.14
Accrued expenses 1,349,115,519.54 326,749,720.17 1,387,553,412.35 342,490,567.25
Accrued salary 42,347,931.51 10,586,982.88 55,679,676.14 13,919,919.04
Estimated liabilities 12,640,441.72 1,896,066.26 12,737,298.24 1,910,594.74
Share-based payment 51,889,706.92 12,000,187.47
Book-tax difference for depreciation of
758,178.56 189,544.64
fixed assets
Expected returns 8,355,059.11 2,052,992.64 7,251,899.92 1,812,974.98
Effect created by the New Lease Standards 8,125,161.92 2,004,367.63 2,601,983.12 635,171.05
Total 1,673,909,693.18 401,472,928.85 1,684,090,849.81 410,974,540.21
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2022 Annual Report of Zhejiang Supor Co., Ltd.
(2) Deferred income tax assets or liabilities presented with net amount after offsetting
Unit: RMB
Offsetting amount between Offsetting amount between
Closing balance of deferred Opening balance of
deferred income tax assets deferred income tax assets
Item income tax assets or deferred income tax assets
and liabilities at the end of and liabilities at the
liabilities after offsetting or liabilities after offsetting
the period beginning of the period
Deferred income tax assets 401,472,928.85 410,974,540.21
Deferred income tax
liabilities
(3) Detail about unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 15,629,891.75 9,242,482.90
Deductible losses 28,216,721.82 22,983,929.59
Total 43,846,613.57 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 5,232,792.23
Total 28,216,721.82 22,983,929.59
18. Notes payable
Unit: RMB
Type Closing balance Opening balance
Bank acceptance bill 1,057,611,900.00 500,250,000.00
Total 1,057,611,900.00 500,250,000.00
The above amounts are all due within one year .The amount of due unpaid notes payable is RMB 0.00 at the end of the current period.
19. Accounts payable
(1) Details
Unit: RMB
Item Closing balance Opening balance
Goods payment 1,274,889,065.48 2,385,533,206.14
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Equipment and engineering funds 67,104,579.12 74,164,020.84
Expenses payment 1,293,527,903.59 1,310,003,599.52
Total 2,635,521,548.19 3,769,700,826.50
Other remarks:
As at December 31, 2022, the Group had no significant accounts payable with an age of more than one year (December 31, 2021: None).
20. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advances on sales 1,153,932,879.53 893,741,863.21
Total 1,153,932,879.53 893,741,863.21
The amount with major changes in its book value during the reporting period and its reasons
Unit: RMB
Item Variation amount Variation reason
Including the revenue recognized by the amount of book value of contract
Advances on sales -893,741,863.21
liabilities at the beginning of the year
The amount increased due to receipt of cash (excluding the amount recognized
Advances on sales 1,153,932,879.53
as revenue in the current year)
Total 260,191,016.32 ——
21. Employee remunerations payable
(1) Details
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term employee remuneration 303,575,560.46 1,667,475,941.82 1,688,441,566.68 282,609,935.60
II. Post-employment Benefits - Defined
9,073,751.55 88,204,165.23 91,392,729.30 5,885,187.48
Contribution Plan
III. Termination Benefit 9,043,641.87 656,896.35 9,120,232.80 580,305.42
Total 321,692,953.88 1,756,337,003.40 1,788,954,528.78 289,075,428.50
(2) Details of short-term employee remuneration
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus, allowance and subsidy 261,402,348.07 1,490,517,755.60 1,513,396,273.10 238,523,830.57
2. Employee services and benefits 5,591,592.20 62,975,871.74 64,798,920.73 3,768,543.21
3. Social insurance charges 3,795,053.66 54,881,041.74 54,616,942.66 4,059,152.74
Occupational injuries premium 231,126.92 4,254,095.16 4,169,041.22 316,180.86
Medical and maternity insurance
3,563,926.74 50,626,946.58 50,447,901.44 3,742,971.88
premiums
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2022 Annual Report of Zhejiang Supor Co., Ltd.
4. Housing accumulation fund 41,323,781.55 41,159,977.47 163,804.08
5. Trade union fund and employee education
32,786,566.53 17,777,491.19 14,469,452.72 36,094,605.00
fund
Total 303,575,560.46 1,667,475,941.82 1,688,441,566.68 282,609,935.60
Other remarks:
On March 25, 2019, the General Office of the State Council released the Opinions on Comprehensively Promoting the Combined Implementation
of Maternity Insurance and Basic Medical Insurance for Employees, which promotes the combined implementation of the two insurances.
(3) Details of defined contribution plan
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic endowment insurance 8,917,574.02 84,941,205.44 88,174,533.26 5,684,246.20
2. Unemployment insurance premium 156,177.53 3,262,959.79 3,218,196.04 200,941.28
Total 9,073,751.55 88,204,165.23 91,392,729.30 5,885,187.48
(4) Termination benefit
Supor's termination benefits due to rescinding labor relations in this year are RMB 9,120,232.80 (2021: RMB 41,905,536.10), and the outstanding
amount payable at the end of the year is RMB 580,305.42 (December 31, 2021: RMB 9,043,641.87).
22. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT 29,951,962.61 16,872,131.15
Enterprise income tax 141,680,509.34 211,061,366.37
Individual income tax 3,309,618.70 3,008,686.26
Urban maintenance and construction tax 5,065,611.60 2,435,989.79
Housing property tax 10,036,243.48 8,277,905.43
Land use tax 6,702,356.53 6,675,898.84
Stamp tax 4,127,604.37 4,014,935.73
Education surcharge 2,201,227.48 994,165.50
Local education surcharge 1,533,579.16 753,712.48
Total 204,608,713.27 254,094,791.55
23. Other payables
Unit: RMB
Item Closing balance Opening balance
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Other payables 137,729,222.63 110,605,272.21
Total 137,729,222.63 110,605,272.21
(1) Other payables
1) Listing by nature
Unit: RMB
Item Closing balance Opening balance
Deposit as security 99,096,157.97 72,599,903.25
Temporary receipts payable 21,538,362.25 25,902,507.85
Others 17,094,702.41 12,102,861.11
Total 137,729,222.63 110,605,272.21
24. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease obligations due within one year 41,924,940.24 29,191,343.78
Total 41,924,940.24 29,191,343.78
25. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Refund payable 22,621,360.23 20,629,048.91
Endorsed bank acceptance bill unrecognized 22,383,800.87 53,979,357.24
Output tax to be written-off 149,694,451.88 115,201,977.22
Total 194,699,612.98 189,810,383.37
26. Lease obligation
Unit: RMB
Item Closing balance Opening balance
Long-term lease obligations 192,704,856.82 186,611,554.59
Minus: Lease obligations due within one year -41,924,940.24 -29,191,343.78
Total 150,779,916.58 157,420,210.81
Other remarks:
The Group also rents employee dormitories, temporary warehouses, etc. for a lease term up to one year, representing short-term leases. The Group
has chosen not to recognize the right-of-use assets and lease obligations for these leases.
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27. Long-term employee remunerations payable
Unit: RMB
Item Closing balance Opening balance
II. Termination Benefit 1,441,111.55 1,903,631.69
Total 1,441,111.55 1,903,631.69
28. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Reasons for the balance
Pending lawsuit 11,150,000.00 11,150,000.00 See Note 14. "Commitments and Contingencies" for details
Financial guarantee contract 1,490,441.72 1,587,298.24 See Note 14. "Commitments and Contingencies" for details
Total 12,640,441.72 12,737,298.24
29. Share capital
Unit: RMB
Increase/decrease in the period (+, -)
Opening balance Shares Closing balance
New shares Converted capital Others Subtotal
bonus
Total shares 808,678,476.00 -24,000.00 -24,000.00 808,654,476.00
Other remarks:
The decrease in share capital in the current period is RMB 24,000.00, which refers to the repurchase and deregistration of 24,000 restricted shares
from the separated equity incentive objects at the price of RMB 1 per share, resulting in the corresponding decrease of share capital in the amount
of RMB 24,000.00.
30. Capital reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share capital premium) 52,997,061.77 52,997,061.77 0.00
Other capital reserve 69,973,278.50 55,395,710.94 125,368,989.44
Total 122,970,340.27 55,395,710.94 52,997,061.77 125,368,989.44
Other remarks (including increase and decrease in current period and variation reason):
1) The decrease of share capital premium in this year is RMB 52,997,061.77, which is the cost of reselling the treasury share turn overed by the
authorized objects of the equity incentive plan after purchasing restricted stocks. The capital reserve - capital stock premium is adjusted according
to the difference.
2) The increase of RMB 55,395,710.94 in other capital reserves in the current period refers to ① the equity-settled share-based payment amount
of RMB 54,847,235.98 in the current period included in the capital reserve (other capital reserves), as detailed in Note 13 "Description of Share-
based Payment" to these financial statements. ② The estimated deductible amount of the share-based payment in the future of this year exceeds
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2022 Annual Report of Zhejiang Supor Co., Ltd.
the cost recognized in the waiting period. The deferred income tax assets formed by the excess of RMB 548,474.96 are directly included into the
capital reserve - other capital reserves.
31. Treasury shares
Unit: RMB
Item Opening balance Increase Decrease Closing balance
treasury share 76,159,897.25 162,954,253.14 139,389,326.90 99,724,823.49
Total 76,159,897.25 162,954,253.14 139,389,326.90 99,724,823.49
Other remarks (including increase and decrease in current period and variation reason):
1) The 12th Session of the Seventh Board of Directors of the Company and the General Meeting of Shareholders in 2021 reviewed and passed the
Proposal on Repurchasing Certain Public Shares. The Company planned to use its own funds to buy back its shares for the write-off and decrease
of the registered capital and the implementation of equity incentives. The increase in this year is that the Company repurchased 3,325,069 shares
of the Company from the secondary market in the form of centralized competitive trading during the reporting period, totaling RMB
162,937,785.50, and the repurchase handling fee is RMB 16,467.64, of which RMB 69,398,019.65 is proposed for the implementation of equity
incentives and RMB 93,556,233.49 is proposed for cancellation or implementation of equity incentives.
2) The annual decrease of the treasury share capital is RMB 139,389,326.90. ① The Company's 11th Meeting of the Seventh Board of Directors
in 2022 and the 15th Meeting of the 7th Board of Directors in 2022 deliberated and passed the Proposal on Granting Restricted Stocks to Incentive
Objects. A total of 2,463,000 shares of restricted stocks have been granted this year, with the grant amount of RMB 141,828,326.90. At the same
time, the treasury shares and the liabilities for repurchase obligations were recognized at RMB 2,463,000.00 based on the number of restricted
stocks issued and the corresponding repurchase price of RMB 1 per share.
② At the 12th Meeting of the Seventh Session of the Board of Directors of the Company in 2022, it was resolved that six incentive objects of the
Company no longer met the incentive conditions due to their resignation, and repurchased and cancelled a total of 24,000 shares of restricted
stocks at a price of RMB 1 per share, and decreased the repurchase obligation by RMB 24,000.00 accordingly.
32. Other comprehensive incomes
Unit: RMB
Amount incurred during this period
Minus: Other
comprehensive Minus: Other
Current period incomes comprehensive Closing
Item Opening balance cumulative Minus: Attributable to Attributable to
carried incomes carried balance
Income tax parent non-controlling
before income forward forward
expenses company interest
tax transferred to transferred to
profits and retained earnings
losses
II. Other
Comprehensive
Incomes to Be
-41,522,541.60 20,857,374.53 21,067,718.34 -210,343.81 -20,454,823.26
Reclassified
into the Profit
and Loss
Conversion
difference in
foreign currency -41,522,541.60 20,857,374.53 21,067,718.34 -210,343.81 -20,454,823.26
financial
statement
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Total other
comprehensive -41,522,541.60 20,857,374.53 21,067,718.34 -210,343.81 -20,454,823.26
income
33. 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
Remarks on surplus reserve (including increase and decrease in current period and variation reason):
The cumulative statutory surplus reserve provision by the company has reached 50% of the registered capital of the company, and it will no longer
continue to withdraw the statutory surplus reserve.
34. Undistributed profits
Unit: RMB
Item Current period Preceding period
Undistributed profits at the end of last period before adjustment 6,451,748,564.12 6,202,587,444.38
Undistributed profits at period beginning after adjustment 6,451,748,564.12 6,202,587,444.38
Plus: Net profit attributable to owners of the parent company 2,067,659,526.97 1,943,943,608.94
Minus: withdrawal of statutory surplus reserve 356,924,811.32
Ordinary share dividends payable 2,567,723,592.43 1,048,601,714.34
Offset of undistributed profits by share deregistration 289,255,963.54
Grant of restricted stocks 86,368,265.13
Undistributed profits at the end of the period 5,865,316,233.53 6,451,748,564.12
Adjustment of undistributed profits at period beginning:
1). Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations, undistributed profit at period
beginning was changed by RMB 0.
2). Due to change of accounting policies, undistributed profit at period beginning was changed by RMB 0.
3). Due to rectification of important accounting errors, undistributed profit at period beginning was changed by RMB 0.
4). Due to change of merger scope resulted from same control, undistributed profit at period beginning was changed by RMB 0.
5). Due to other adjustment, undistributed profit at period beginning was changed by RMB 0.
35. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Main business 19,947,308,992.05 14,779,802,587.93 21,372,524,970.07 16,446,814,570.16
Revenue from other operations 223,218,524.61 189,526,252.64 212,806,437.40 174,798,590.64
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Total 20,170,527,516.66 14,969,328,840.57 21,585,331,407.47 16,621,613,160.80
Whether the net profit before or after non-recurring profit and loss are deducted, whichever is lower, is negative
□ Yes No
Information related to revenue:
Unit: RMB
Contract classification Total
Commodity type
Including:
Cookware and utensil 6,121,737,273.97
Electrical cooking 8,506,984,442.90
Food cooking appliances 3,086,500,276.55
Other domestic appliances 2,455,305,523.24
Classified by business area
Including:
Domestic sales 14,975,644,970.69
Export sales 5,194,882,545.97
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but have not been
performed or not yet completed is RMB 1,153,932,879.53, of which RMB 1,153,932,879.53 is expected to be recognized as revenue in 2023.
36. Taxes and surcharges
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Urban maintenance and construction tax 60,826,714.98 40,321,696.20
Education surcharge 26,242,005.20 17,291,200.73
Housing property tax 12,328,977.15 11,059,149.84
Land use tax 1,954,421.94 3,182,999.64
Vehicle and vessel use tax 58,546.40 53,896.40
Stamp tax 11,651,100.02 9,899,325.25
Local education surcharge 17,555,804.52 11,558,151.43
Environmental protection tax 75,969.20 50,636.40
Total 130,693,539.41 93,417,055.89
Other remarks:
See Note 6. Taxes for calculating standard of taxes and surcharges.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
37. Sales expenses
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Advertising, sales promotion, and special gift expenses 1,552,778,059.77 1,361,391,136.59
Employee remuneration 401,609,998.06 374,660,735.45
Office and business traveling expenses 124,217,367.02 112,141,689.26
Others 77,691,633.78 61,759,534.24
Total 2,156,297,058.63 1,909,953,095.54
38. Administrative expenses
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Employee remuneration 218,635,148.78 250,016,795.57
Office, business traveling and depreciation and amortization expenses 87,381,475.69 88,063,375.90
Equity incentive expenses 36,289,361.98 11,269,965.47
Others 31,754,653.83 51,429,471.73
Total 374,060,640.28 400,779,608.67
39. R&D expenses
Unit: RMB
Amount incurred during this Amount incurred during
Item
period prior period
Employee remuneration 202,158,417.41 199,256,168.22
Trial production experiment cost and consumption expenditure 91,696,672.99 147,992,946.85
New product design cost 47,898,023.51 37,210,629.96
Patent and external institutional fees 43,628,185.52 45,321,522.66
Others 30,878,057.56 20,329,242.82
Total 416,259,356.99 450,110,510.51
40. Financial expenses
Unit: RMB
Amount incurred during this Amount incurred during
Item
period prior period
Interest expense of loans and accounts payable 142,176.50 77,737.82
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Interest revenue of deposits and receivables -76,571,126.41 -32,337,493.71
Interest expense of lease obligations 9,136,772.28 9,999,166.62
Gain or loss on net foreign exchange -34,786,425.70 9,569,135.05
Handling fee and other financial expenses 4,655,315.42 6,209,153.06
Total -97,423,287.91 -6,482,301.16
41. Other incomes
(1) Classification of other income
Amount incurred during this Amount incurred during Amount included into non-recurring
Source of other revenues
period prior period profit or loss of the current year
Government subsidies concerning daily activities 235,160,623.11 201,942,112.00 198,065,639.28
Withholding and paying tax expense and handling
1,534,189.23 922,468.37 1,534,189.23
fee refund
Total 236,694,812.34 202,864,580.37 199,599,828.51
(2) Government subsidies concerning daily activities
Amount incurred during this Amount incurred during prior
Subsidy item Related to assets/income
period period
Project subsidy 33,414,476.64 28,741,236.55 Related to benefits
Government reward 164,637,740.59 152,331,864.95 Related to benefits
Tax returns 37,108,405.88 20,869,010.50 Related to benefits
Total 235,160,623.11 201,942,112.00
42. Investment income
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Income from long-term equity investments under the equity method -3,262,848.85 1,378,149.04
Investment income from disposal of transactional financial assets 4,386,059.07 1,422,647.44
Interest from term deposit 34,428,058.56 84,434,593.01
Investment income of debt investment during the holding period 16,631,649.43 3,650,461.93
Investment income from disposal of debt investments 1,864,109.59
Total 54,047,027.80 90,885,851.42
43. Gains from changes in fair value
Unit: RMB
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Resource for gains from changes in fair value Amount incurred during this period Amount incurred during prior period
Transactional financial assets 1,382,527.79 312,742.31
Total 1,382,527.79 312,742.31
44. Credit impairment loss
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Loss for bad debts of other receivables -1,388,421.68 1,312,144.79
Accounts receivable 35,810,880.38 -11,351,714.61
Notes receivable 1,231,422.58
Financial guarantee contract 96,856.52 -1,587,298.24
Total 34,519,315.22 -10,395,445.48
45. Asset impairment loss
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
II. Loss on Inventory Depreciation and Impairment Loss of
-11,352,717.26 -14,390,694.58
Contract Performance Cost
Total -11,352,717.26 -14,390,694.58
46. Assets disposal income
Unit: RMB
Source of assets disposal income Amount incurred during this period Amount incurred during prior period
Gains from disposal of fixed assets -2,002,558.23 -953,474.88
Proceeds from the disposal of the right-of-use assets 639,053.38 848,095.20
Total -1,363,504.85 -105,379.68
47. Non-operating incomes
Unit: RMB
Amount included into non-
Amount incurred during this
Item Amount incurred during prior period recurring profit or loss of the
period
current period
Damage and scrapping gains of non-
775,693.99 541,643.32 775,693.99
current assets
Including: Gains from scrap of fixed
775,693.99 541,643.32 775,693.99
assets
Default fine revenue 11,310,799.88 2,180,618.19 11,310,799.88
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Reversion of estimated liabilities 6,000,000.00
Others 2,348,632.82 5,177,029.42 2,348,632.82
Total 14,435,126.69 13,899,290.93 14,435,126.69
48. Non-operating expenses
Unit: RMB
Amount incurred during this Amount incurred during prior Amount included into non-recurring
Item
period period profit or loss of the current period
Donation expenditures 2,663,130.43 2,855,363.00 2,663,130.43
Damage and scrapping losses of
601,296.71 5,604,319.83 601,296.71
non-current assets
Including: Losses from scrapping
601,296.71 5,604,319.83 601,296.71
of fixed assets
Indemnity expenditure 2,000,000.00
Others 1,199,925.30 2,769,960.72 1,199,925.30
Total 4,464,352.44 13,229,643.55 4,464,352.44
49. Income tax expenses
(1) Details
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Current period income tax expenses 468,983,078.04 494,712,607.62
Deferred income tax expenses 10,050,086.32 -50,302,556.55
Total 479,033,164.36 444,410,051.07
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
Item Amount incurred during this period
Total profit 2,545,209,603.98
Income tax expenses based on statutory/applicable tax rate 636,302,401.00
Effect of different tax rate applicable to subsidiaries -125,323,422.53
Effect of prior income tax reconciliation 2,491,214.69
Effect of non-taxable income
Effect of non-deductible costs, expenses and losses 14,344,165.13
Effect of use of the deductible losses of unconfirmed deferred income tax assets in the prior period
Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax
2,701,349.79
assets in the current period
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Deduction for the additional calculation of R&D expense -38,560,250.65
Effect of use of the deductible losses of unconfirmed deferred income tax assets in the prior period -13,363,652.98
Effect of tax rate variation on deferred income taxes balance at the beginning of the period 441,359.91
Income tax expenses 479,033,164.36
50. Other comprehensive incomes
See Note 32 for details.
51. Cash flow statement items
(1) Other cash receipts related to operating activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Receipt of government subsidies 199,599,828.51 182,005,730.83
Receipt of deposit, security and staff reserve fund loan 26,496,254.72 933,932.84
Interest revenues 66,264,180.37 31,866,526.58
Receipt of Deposit security for advance payment financing 6,000,000.00
Others 4,311,161.59 9,093,457.04
Total 296,671,425.19 229,899,647.29
(2) Other cash payments related to operating activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Cash payment for sales expense 1,594,110,566.41 960,641,231.27
Cash payment for administrative expenses 95,471,984.49 111,700,135.05
Cash payment for R&D expenses 203,782,142.17 251,058,723.03
Donations payment 2,663,130.43 2,855,363.00
Other payments 9,398,008.04 6,505,678.81
Total 1,905,425,831.54 1,332,761,131.16
(3) Other cash receipts related to investing activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Recovery of financial products, and principal of term deposit 3,103,136,438.00 1,571,003,018.00
Total 3,103,136,438.00 1,571,003,018.00
(4) Other cash payments related to investing activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Cash payment for financial products and term deposit 3,597,439,490.93 1,032,059,354.70
Total 3,597,439,490.93 1,032,059,354.70
(5) Other cash receipts related to financing activities
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Receipt of equity incentive payment 2,463,000.00
Total 2,463,000.00
(6) Other cash payments related to financing activities
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Repurchase of shares and handling fees 162,978,253.14 483,916,912.23
Cash paid for repayment of lease obligation
45,922,594.90 64,023,220.86
principal and interest
Total 208,900,848.04 547,940,133.09
52. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
Supplement information Amount of this period Amount of last period
1. Reconciliation of net profit to cash flow from operating activities
Net profit 2,066,176,439.62 1,941,371,527.89
Plus: Impairment provision of assets 11,352,717.26 14,390,694.58
Credit impairment loss -34,519,315.22 10,395,445.48
Depreciation of fixed assets, oil and gas assets, productive biological assets 128,264,310.47 128,827,418.00
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Depreciation of right-of-use assets 47,571,308.63 45,955,247.03
Amortization of intangible assets 23,555,707.71 21,778,005.36
Amortization of long-term unamortized expenses 405,414.24
Loss on disposal of fixed assets, intangible assets and other long-term assets ("-" for
1,363,504.85 105,379.68
gains)
Fixed assets retirement loss ("-" for gains) -174,397.28 5,062,676.51
Losses from changes in fair value ("-" for loss) -1,382,527.79 -312,742.31
Financial expenses ("-" for gains) -12,246,928.46 15,229,621.08
Investments losses ("-" for gains) -53,905,404.54 -90,659,995.56
Decrease of deferred income tax assets ("-" for increase) 10,050,086.32 -48,995,306.55
Increase of deferred income tax liabilities ("-" for decrease) -1,307,250.00
Decrease in inventories ("-" for increase) 590,241,481.65 -701,609,059.62
Decrease in operating receivables ("-" for increase) 751,425,931.09 -202,060,314.99
Increase in operating payables ("-" for decrease) -319,790,108.30 1,036,624,574.61
Others -48,027,560.17 -125,319,766.74
Net cash flows from operating activities 3,159,955,245.84 2,049,881,568.69
2. Significant investing and financing activities not related to cash receipts and payments
Conversion of debt into capital
Convertible bonds to be matured within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Cash at the end of the period 2,395,932,752.38 2,443,731,679.06
Minus: Cash at the beginning of the period 2,443,731,679.06 1,655,785,919.04
Plus: Cash equivalents at the end of the period
Minus: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -47,798,926.68 787,945,760.02
(2) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 2,395,932,752.38 2,443,731,679.06
Including: Cash on hand 56,591.47 71,122.80
Cash in bank on demand for payment 2,361,573,752.74 2,420,300,342.03
Other monetary capitals on demand for payment 34,302,408.17 23,360,214.23
III. Balance of Cash and Cash Equivalents at the End of the Period 2,395,932,752.38 2,443,731,679.06
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2022 Annual Report of Zhejiang Supor Co., Ltd.
53. 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 12,546,000.00 Frozen funds of term deposits pledged by issuing bank acceptance bills.
Monetary capital 254,129,233.86 Bank acceptance bill security
Monetary capital 975,570.02 Security and frozen funds of e-commerce platforms
Monetary capital 8,541.04 Write off the frozen amount in the bank account of the branch
Monetary capital 82,189.64 Frozen funds for the change of industrial and commercial legal person
Total 325,741,534.56
54. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance in foreign
Item Conversion rate RMB equivalent
currencies
Monetary capital
Including: USD 48,944,996.32 6.9646 340,882,321.37
EUR 29,814.66 7.4229 221,311.24
GBP 30.07 8.3941 252.41
VND 177,936,694,979.50 0.000295486 52,577,802.25
SGD 83,483.09 5.1831 432,701.20
IDR 25,037,610,788.47 0.000445 11,141,736.80
Accounts receivable
Including: USD 28,426,382.90 6.9646 197,978,386.35
EUR 1,023.22 7.4229 7,595.26
VND 18,817,173,843.50 0.000295486 5,560,211.43
IDR 1,781,095,028.00 0.000445 792,587.29
Accounts payable
Including: USD 434,835.42 6.9646 3,028,454.77
EUR 596.00 7.4229 4,424.05
VND 45,157,684,069.59 0.000295486 13,343,463.43
SGD 39,441.00 5.1831 204,426.65
IDR 5,217,251,169.87 0.000445 2,321,676.77
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2022 Annual Report of Zhejiang Supor Co., Ltd.
VIII. Change on Merger Scope
1. Change on merger scope for other reasons
Description of the change on the merger scope for other reasons (such as newly established subsidiaries, and liquidation subsidiaries) and related
conditions:
Supor cancelled Shanghai SEB Electrical Appliances Co., Ltd. (SSEAC) on August 17, 2022. SSEAC will no longer be included in the scope of
balance sheet consolidation at the end of the year, and its profit statement and cash flow statement from the beginning of the year to the date of
cancellation are included in the merger scope.
IX. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise Group
Main operating Place of Shareholding ratio
Subsidiary name Business nature Acquisition method
place registration Direct Indirect
Zhejiang Supor Electrical Appliances Manufacturing
Hangzhou Hangzhou 100.00% Establishment
Manufacturing Co., Ltd [Note 1] industry
Zhejiang Shaoxing Supor Domestic Manufacturing
Shaoxing Shaoxing 100.00% Establishment
Electrical Appliances Co., Ltd [Note 1] industry
Manufacturing
Supor (Vietnam) Co., Ltd [Note 1] Vietnam Vietnam 100.00% Establishment
industry
Wuhan Supor Recycling Co., Ltd [Note 1] Wuhan Wuhan Commerce 100.00% Establishment
Wuhan Supor Cookware Co., Ltd [Note 1] Manufacturing
Wuhan Wuhan 25.00% 75.00% Establishment
[Note 2] industry
Hangzhou Omegna Commercial Trade
Hangzhou Hangzhou Commerce 100.00% Establishment
Co., Ltd [Note 1]
Shanghai Supor Cookware Marketing
Shanghai Shanghai Commerce 100.00% Establishment
Co., Ltd [Note 1]
Enterprise merger
Wuhan Supor Pressure Cooker Co., Ltd Manufacturing
Wuhan Wuhan 100.00% under the same
[Note 1] industry
control
Enterprise merger
Zhejiang Supor Plastic & Rubber Co., Ltd. Manufacturing
Yuhuan Yuhuan 100.00% under the same
[Note 1] industry
control
Enterprise merger
Yuhuan Supor Cookware Sales Co., Ltd
Yuhuan Yuhuan Commerce 100.00% not under the same
[Note 1]
control
Enterprise merger
SEADA [Note 1] Singapore Singapore Commerce 51.00% under the same
control
Enterprise merger
AFS Vietnam Management Co.,
Vietnam Vietnam Commerce 100.00% under the same
Ltd. [Note 1] [Note 3]
control
Shanghai WMF Enterprise Development Manufacturing
Shanghai Shanghai 100.00% Establishment
Co., Ltd [Note 1] industry
Zhejiang WMF Housewares Co., Ltd Manufacturing
Yuhuan Yuhuan 100.00% Establishment
[Note 1] industry
Zhejiang Shaoxing Supor Household Manufacturing
Shaoxing Shaoxing 100.00% Establishment
Products Co., Ltd. [Note 1] industry
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Zhejiang Supor Large Kitchen Appliance Manufacturing
Shaoxing Shaoxing 100.00% Establishment
Co., Ltd. [Note 1] industry
PT GROUPE SEB INDONESIA MSD
Indonesia Indonesia Commerce 66.67% Establishment
[Note 4]
Zhejiang Supor Water Heater Co., Ltd Manufacturing
Shaoxing Shaoxing 52.00% Establishment
[Note 1] [Note 5] industry
Hainan Supor E-commerce Co., Ltd [Note
Hainan Hainan Commerce 100.00% Establishment
1] [Note 6]
Hainan Tefal Trading Co., Ltd. [Note 1]
Hainan Hainan Commerce 100.00% Establishment
[Note 6]
Explanation on shareholding ratio in subsidiary different from voting ratio:
Note 1: The following are abbreviations: Zhejiang Supor Electrical, Shaoxing Supor, Supor Vietnam, Wuhan Recycling, Wuhan Supor Cookware,
Omegna, Shanghai Marketing, Wuhan Supor Pressure Cooker, P&R Products, Wuhan Supor, Yuhuan Sales, SEADA, AFS, Shanghai WMF
Enterprise Development, Zhejiang WMF Housewares, Shaoxing Supor Housewares, Zhejiang Supor LKA, Supor Water Heater, Hainan Supor E-
commerce Company and Hainan Tefal Trading Company.
Note 2: The Company is subsidiary of Wuhan Supor Pressure Cooker Co., Ltd.; of which, Wuhan Supor Pressure Cooker Co., Ltd holds 75%
shares and the Company holds 25% shares.
Note 3: The Company holds 51% equity of SEADA, and AFS is totally held by SEADA.
Note 4: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA, a subsidiary of the Company and PT MULTIFORTUNA in
Indonesia this year. SEADA holds 66.67% shares and PT MULTIFORTUNA holds 33.33% shares.
Note 5: Zhejiang Supor Water Heater Co., Ltd is jointly invested and established by the Company and Supor Group Co., Ltd. The Company holds
52% of the shares, and Supor Group Co., Ltd holds 48% of the shares.
Note 6: Hainan Supor E-commerce Company and Hainan Tefal Trading Company are totally held by Zhejiang Supor Electrical. As of the
disclosure date of this report, the original Hainan Supor Technology Co., Ltd. has changed its name to Hainan Tefal Trading Co., Ltd., and the
above changes have been registered for industrial and commercial changes on July 26, 2022.
(2) Significant not wholly-owned subsidiaries
Unit: RMB
Balance of minority
Holding proportion of non- Profit or loss attributable to Dividend declared to non-
Subsidiary name shareholders' equities at the
controlling interest non-controlling interest controlling interest
end of the period
SEADA 49.00% -229,593.92 7,361,632.39
AFS 49.00% 114,580.61 987.37
Indonesian Company 33.33% -2,186,293.24 1,416,039.47
Supor Water Heater 48.00% 818,219.20 27,826,665.51
(3) Main financial information of significant not wholly-owned subsidiaries
Unit: RMB
Subsidiary
Closing balance Opening balance
name
Non-current Current Non-current Non-current Current Non-current
Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
SEADA 3,763,157.10 13,869,963.20 17,633,120.30 14,241,765.93 14,241,765.93 2,201,136.53 7,691,059.63 9,892,196.16 7,407,010.28 7,407,010.28
AFS 3,389,845.91 568,960.44 3,958,806.35 1,070,523.05 439,200.49 1,509,723.54 3,972,561.59 410,013.58 4,382,575.17 976,857.81 266,917.90 1,243,775.71
Indonesian
19,265,234.13 4,387,418.29 23,652,652.42 3,939,053.83 487,307.49 4,426,361.32 16,835,657.30 3,754,654.59 20,590,311.89 5,525,709.41 487,900.80 6,013,610.21
Company
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Supor Water
81,886,479.37 4,198,450.08 86,084,929.45 27,883,742.19 27,883,742.19 82,108,107.10 3,773,931.89 85,882,038.99 29,357,361.93 29,357,361.93
Heater
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Subsidiary Total Cash flows Total Cash flows
name Operating Operating
Net profit comprehensive from operating Net profit comprehensive from operating
income income
income activities income activities
SEADA 501,392.22 622,542.22 906,168.49 173,028.59 701,331.09 -11,140,228.84 -11,938,239.30 535,174.99
AFS 233,837.98 380,224.13 985,465.73 189,744.25 30,242.34 104,366.81
Indonesian
12,693,249.95 -3,312,565.51 -3,243,185.37 -625,541.56 15,751,790.01 -3,680,740.39 -3,436,395.54 -7,578,451.25
Company
Supor Water
73,168,043.93 1,676,510.20 1,676,510.20 -1,453,649.47 81,685,332.63 -177,202.91 -177,202.91 -937,523.81
Heater
2. Equity in joint venture or associated enterprises
(1) Significant joint venture or associated enterprises
Shareholding ratio Accounting method
for the investment
Name of joint venture or associated Place of
Main operating place Business nature in joint venture or
enterprise registration Direct Indirect associated
enterprises
Manufacturing
Wuhan Anzai Cookware Co., Ltd. Wuhan Wuhan 30.00% Equity method
industry
(2) Main financial information of significant associated enterprise
Unit: RMB
Closing balance/amount Opening balance/Amount
incurred during this period incurred during prior period
Current assets 127,719,328.09 146,447,108.80
Non-current assets 41,540,448.40 46,881,291.93
Total assets 169,259,776.49 193,328,400.73
Current liabilities 36,684,125.15 49,304,509.03
Non-current liabilities 540,000.00 640,000.00
Total liabilities 37,224,125.15 49,944,509.03
Shareholders' equities attributable to the parent company 132,035,651.34 143,383,891.70
Proportionate share in net assets 39,610,695.40 43,015,167.51
--Goodwill 22,585,444.13 22,585,444.13
Book value of investments in associated enterprises 62,196,139.53 65,600,611.64
Operating income 212,124,918.12 267,794,993.46
156
2022 Annual Report of Zhejiang Supor Co., Ltd.
Net profit -11,348,240.36 3,840,977.30
Total comprehensive income -11,348,240.36 3,840,977.30
X. Risks related to financial instruments
(I) Risk management objectives and policies
The Group aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to minimize the
adverse effects of risks on the Group's financial performance. Based on such objectives, the Group's risk management policies are established to
identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash flows due
to changes in exchange rate. The Group's foreign currency risk relates mainly to foreign currency monetary assets and liabilities of the Group.
When short-term imbalance occurred to foreign currency assets and liabilities, the Group may conduct foreign exchange hedge or trade foreign
currency at market exchange rate when necessary, in order to maintain the net risk exposure within an acceptable level.
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 of the Group.
Sensitivity analysis:
Assuming that other risk variables other than the exchange rate remain unchanged, the increase in shareholders' equities and net profits due
to the 1% appreciation of RMB due to the change in exchange rate of RMB against all foreign currencies as at 31 December of the Group will be
as follows. This influence is translated into RMB at the spot rate on the balance sheet date.
Shareholders' equities Net profit
December 31, 2022
USD 3,877,846.10 3,877,846.10
EUR 1,792.50 1,792.50
GBP 2.15 2.15
VND 358,356.14 358,356.14
SGD 1,893.94 1,893.94
IDR 74,978.65 74,978.65
Total 4,314,869.48 4,314,869.48
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 - risk for cash flow changes
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Interest risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash flows due to market
rate. As of December 31, 2022, balance of borrowings is zero, the Group's gross profits and shareholders' equities will not be significantly affected
by interest risk.
2. Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.
The monetary capital of the Group other than cash is mainly deposited in creditworthy financial institutions, and the entrusted financial
products are issued by creditworthy financial institutions. The management considers that there is not any significant credit risk and it is not
expected to create losses to the Group as a result of default by the counterparty.
The exposure of the maximum credit risk assumed by the Group is the book value of each financial asset in the balance sheet (including
derivative financial instruments). Except for the financial guarantee provided by the Group in Note 14, the Group has not provided any other
guarantee that may expose the Group to credit risk. The exposure of the maximum credit risk assumed by the above financial guarantees on the
balance sheet date has been disclosed in Note 14.
The Company's credit risk is primarily attributable to receivables. In order to control such risks, the Company has taken the following
measures:
(1) Receivables financing and notes receivable
Receivables financing and notes receivable of the Group is mainly bank acceptance bill receivable. The Group conducts ongoing monitoring
on receivables, to avoid significant risks in bad debts.
(2) Accounts receivable
The Group only conducts business with credible and well-reputed third parties. According to the Group's policies, credit evaluations are
performed on all customers to determine the credit limit and terms applicable to the customers. In addition, the Group conducts ongoing monitoring
on accounts receivable, to avoid significant risks in bad debts.
(i) Continue to strengthen risk awareness, strengthen risk management of accounts receivable, and strengthen internal control of customer credit
policy management. Customer credit policy adjustments are required to pass the necessary approval procedures.
(ii) Keep detailed business records and accounting work. And use the records as important reference for future credit rating. Keep real time updating
on customers' information and learn their latest credit situation, in order to make suitable credit policies.
The Group's accounts receivable from related party SEB S.A. and its subsidiaries accounted for 50.14% of closing balance (December 31,
2021: 70.35%), 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 December 31, 2022, 26.43% (December 31, 2021: 11.28%) of the total accounts receivable was due from the five
largest customers of the Company after deducting receivables from related party SEB S.A. The Company has no significant central credit risk.
3. Other receivables
Other receivables of the Group are mainly export rebate receivable and deposit as security receivable, etc. The Group performed collective
management and ongoing monitoring on such receivables and related business to avoid significant risks in bad debts.
(a) Analysis of amount of accounts receivable that is not past due and not impaired, the amount that is past due but not impaired, and the overdue
aging of the Group is as follows:
Unit: RMB
Closing balance
Item Past due but not impaired
Neither past due nor impaired Total
Within 1 year 1-2 years Over 2 years
Notes receivable 27,325,952.95 27,325,952.95
Receivables financing 235,957,044.34 235,957,044.34
Other receivables 1,237,388.33 1,237,388.33
Subtotal 264,520,385.62 264,520,385.62
(Continued)
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Beginning balance
Item Past due but not impaired
Neither past due nor impaired Total
Within 1 year 1-2 years Over 2 years
Notes receivable 54,879,357.24 54,879,357.24
Receivables financing 3,312,225.62 3,312,225.62
Other receivables 1,237,370.65 1,237,370.65
Subtotal 59,428,953.51 59,428,953.51
(b) For individually accrued impairment receivables, please refer to related description on Note 7 "4. Accounts receivable" in the notes to the
financial statements.
3. Liquidity risk
Liquidity risk is the risk that the Group may encounter deficiency of funds in meeting obligations associated with cash or other financial
assets settlement. Liquidity risk is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure in collecting
liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Group optimizes the structure of assets and liabilities, and finally maintains a balance between financing
sustainability and flexibility.
Financial instruments classified based on remaining time period till maturity
Item Closing balance
Book value Within 1 year 1-3 years Over 3 years Total
Financial assets
Monetary capital 3,563,140,907.75 3,563,140,907.75 3,563,140,907.75
Transactional financial assets 431,382,527.79 431,382,527.79 431,382,527.79
Notes receivable 27,325,952.95 27,325,952.95 27,325,952.95
Accounts receivable 1,926,518,118.38 1,926,518,118.38 1,926,518,118.38
Receivables financing 235,957,044.34 235,957,044.34 235,957,044.34
Other receivables 16,373,697.26 16,373,697.26 16,373,697.26
Other debt investment 1,056,952,424.68 33,150,000.00 1,101,237,500.00 1,134,387,500.00
Other current assets [note] 381,101,095.89 381,101,095.89 381,101,095.89
Subtotal 7,638,751,769.04 6,614,949,344.36 1,101,237,500.00 7,716,186,844.36
Financial liabilities
Notes payable 1,057,611,900.00 1,057,611,900.00 1,057,611,900.00
Accounts payable 2,635,521,548.19 2,635,521,548.19 2,635,521,548.19
Other payables 137,729,222.63 137,729,222.63 137,729,222.63
Other current liabilities 22,383,800.87 22,383,800.87 22,383,800.87
Lease obligation 192,704,856.82 48,581,182.84 108,232,041.03 45,611,911.42 202,425,135.29
Subtotal
4,045,951,328.51 3,901,827,654.53 108,232,041.03 45,611,911.42 4,055,671,606.98
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Note: Other current assets are term deposits for the purpose of obtaining benefits.
(Continued)
Item Beginning balance
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 investment 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
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 obtaining benefits.
(II) Transfer of financial assets
Transferred but not wholly derecognized financial assets
For details, please refer to "3. Notes receivable " in Note 7 to the financial statements.
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 Level 2 Level 3 Total
I. Recurring Fair Value Measurement -- -- -- --
(I) Transactional financial assets 431,382,527.79 431,382,527.79
(II) Other debt investments 1,056,952,424.68 1,056,952,424.68
(III) Receivables financing
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2022 Annual Report of Zhejiang Supor Co., Ltd.
(1) Notes receivable 235,957,044.34 235,957,044.34
II. Non-continued Measurement of Fair Value -- -- -- --
2. Basis for determining the market value of continuous and non-continuous Level 1 fair value measurement items
None
3. Qualitative and quantitative information of continuous and non-continuous Level 2 fair value measurement items,
valuation techniques adopted and important parameters
The fair value of other debt investments and receivables financing is calculated and determined by the method of discounted future cash flows.
4. Qualitative and quantitative information of continuous and non-continuous Level 2 fair value measurement items,
valuation techniques adopted and important parameters
The fair value of the financial products, in the financial assets measured at the fair value with their changes included into the current profits and
losses, is determined by the method of discounted future cash flows calculated by the agreed expected rate of return.
5. Fair value of the financial assets and financial liabilities not measured at fair value
As at December 31, there was not a significant difference between the book value and fair value of the Group's various financial assets and financial
liabilities.
XII. Related Parties and Related Transactions
1. Parent company
Holding proportion Holding proportion
Parent company name Place of registration Business nature Registered capital
over the Company (%) over the Company (%)
SEB
INTERNATIONALE France Investment company EUR 830 million 82.44% 82.44%
S.A.S
Explanation on the parent company of the Group
Business scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operation purpose), namely,
purchase and subscription of shares, bonds, company shares and interest, various securities and marketable securities, and transfer of such securities
or notes, all financial operations related to equity participation, purchase, manufacturing and selling of home appliances for the purpose of
distribution and rendering of relevant services, all activities directly or indirectly contributing to the realization of these operations, particularly in
the areas of movable properties, real estate, finance, commerce and industry operation.
The Group's final controlling party is SEB S.A.
2. Company's subsidiaries
See Note 9 1 "Equity in Subsidiaries" for details on the Company's subsidiaries for details.
3. Joint ventures and associated enterprises of the Company
See Note 9 2 "Equity in Joint Ventures or Associated Enterprises" for details on the Company's significant joint ventures and associates for details.
Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current period or in preceding
period but with balance in current period are as follows:
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Name of joint venture or associated enterprise Relationships with the Company
Wuhan Anzai Cookware Co., Ltd. Associated enterprise
Other remarks:
4. Other related parties of the Company
Related party Relationship between other related parties and the Company
SEB S.A. Final controlling shareholder
SEB ASIA LTD. Same controlling shareholder
TEFAL S.A.S. Same controlling shareholder with the controlling shareholder
ALL-CLAD METALCRAFTERS LLC Same controlling shareholder
S.A.S. SEB Same controlling shareholder with the controlling shareholder
SEB INTERNATIONAL SERVICE S.A.S. Same controlling shareholder with the controlling shareholder
LAGOSTINA S.P.A. Same controlling shareholder
GROUPE SEB MOULINEX Same controlling shareholder with the controlling shareholder
GROUPE SEB EXPORT Same controlling shareholder with the controlling shareholder
SEB DEVELOPPMENT SAS Same controlling shareholder with the controlling shareholder
IMUSA USA LLC Same controlling shareholder
CALOR SAS Same controlling shareholder with the controlling shareholder
Supor Group Co., Ltd. Company controlled by related natural person
Zhejiang Supor Sanitary Ware Co., Ltd. Company controlled by related natural person
ETHERA Same controlling shareholder with the controlling shareholder
WMF CONSUMER ELECTRIC GMBH Same controlling shareholder
WMF Consumer Goods (Shanghai) Co, Ltd. Same controlling shareholder
WMF GROUPE GMBH Same controlling shareholder
GROUPE SEB VIETNAM JOINT STOCK COMPANY Same controlling shareholder
GROUPE SEB SINGAPORE Same controlling shareholder
GROUPE SEB THAILAND Same controlling shareholder
Emsa Taicang Co., Ltd. Same controlling shareholder
Heshan Demei Tableware Co., Ltd. Same controlling shareholder
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
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2022 Annual Report of Zhejiang Supor Co., Ltd.
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
Saichuang (Zhejiang) Technology Co., Ltd. Same controlling shareholder
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. Company controlled by related natural person
Zhejiang Sukean Pharmaceutical Co., Ltd. Company controlled by related natural person
5. Related transactions
(1) Related transactions in the purchase and sale of commodities, and provision and acceptance of labor services
Purchase of commodities and receiving of services
Unit: RMB
Exceeding
Contents of related Amount incurred Transaction Amount incurred
Related parties transaction
transaction during this period quota granted during prior period
limit or not
Wuhan Anzai Cookware Co., Ltd. Finished products 61,178,333.58 No 156,840,291.45
Wuhan Anzai Cookware Co., Ltd. Accessories 150,874,250.24 No 105,258,885.29
GROUPE SEB EXPORT Finished products 7,063,804.76 No 4,562,743.08
GROUPE SEB EXPORT Accessories 73,815.50 No
TEFAL S.A.S. Accessories 7,660,045.82 No 22,895,481.55
LAGOSTINA S.P.A. Finished products 2,194,942.00 No 1,091,606.38
SEB INTERNATIONAL SERVICE S.A.S. Accessories 612,783.70 No 87,255.27
SEB INTERNATIONAL SERVICE S.A.S. Finished products 29,331.02 No 42,005.31
SEB ASIA LTD. Finished products 462,307.92 No 1,503,593.79
GROUPE SEB MOULINEX Accessories 3,255,315.40 No 9,634,219.00
CALOR SAS Accessories No 758,681.93
Heshan Demei Tableware Co., Ltd. Finished products 312,749.25 No 357,692.92
GROUPE SEB SINGAPORE Finished products No 71,089.76
GROUPE SEB THAILAND Finished products 445,146.13 No 847,324.66
Emsa Taicang Co., Ltd. Finished products 234,955.75 No
ETHERA Accessories 317,859.36 No 2,236,242.94
WMF GROUPE GMBH Finished products 26,423,343.21 No 47,851,816.22
WMF Consumer Goods (Shanghai) Co, Ltd. Finished products 37,726.20 No 156,628.32
Supor Group Co., Ltd. Finished products 16,092.68 No 121,869.96
GROUPE SEB MALAYSIA Finished products No 113,777.63
Sale of commodities and rendering of services
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Unit: RMB
Contents of related Amount incurred during Amount incurred during
Related parties
transaction this period prior period
SEB ASIA LTD. Finished products 4,535,035,472.36 6,673,299,860.22
SEB ASIA LTD. Accessories 3,163,380.97 5,423,325.41
S.A.S. SEB Finished products 13,690,166.60 22,578,030.75
S.A.S. SEB Accessories 673,421.95 1,205,129.20
TEFAL S.A.S. Finished products 7,069,905.25 10,919,945.13
TEFAL S.A.S. Accessories 13,666,486.47 18,127,775.58
GROUPE SEB MOULINEX Finished products 18,525,086.93 38,926,768.09
Supor Group Co., Ltd. Finished products 4,424,241.51 3,811,250.38
SEB INTERNATIONAL SERVICE S.A.S. Finished products 918,938.68
SEB INTERNATIONAL SERVICE S.A.S. Accessories 16,484,863.62 15,535,591.67
LAGOSTINA S.P.A. Finished products 49,269.52 139,902.42
LAGOSTINA S.P.A. Accessories 1,233,592.65 1,347,633.19
ALL-CLAD METALCRAFTERS LLC Finished products 355,563.53
IMUSA USA LLC Finished products 16,285,333.26 8,032,879.02
IMUSA USA LLC Accessories 33,167.16
WMF Consumer Goods (Shanghai) Co, Ltd. Finished products 351,115.82 500,029.50
GROUPE SEB CANADA Finished products 14,164,254.85 14,214,992.15
GROUPE SEB VIETNAM JOINT STOCK COMPANY Finished products 24,481,079.33 25,160,890.52
GROUPE SEB VIETNAM JOINT STOCK COMPANY Accessories 11,237.73 11,451.68
CALOR SAS Finished products 24,113,691.00
GROUPE SEB ANDEAN S.A. Accessories 3,513,457.99 865,370.01
Wuhan Anzai Cookware Co., Ltd. Finished products 151,339.61
Wuhan Anzai Cookware Co., Ltd. Accessories 42,226.55
Zhejiang Sukean Pharmaceutical Co., Ltd. Finished products 154,159.29
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. Finished products 550,425.66
Explanation on related transactions in the purchase and sale of commodities, and provision and acceptance of labor services
(2) Related party leases
The Company acts as the leasee:
Unit: RMB
Variable lease
Rent costs of short-term
payments not
leases and low-value
included in the Interest expense of lease
asset leases with Rentals Increased right-of-use asset
measurement of obligation undertaken
Types simplified treatment (if
lease obligation (if
of applicable)
Lessor Lessee applicable)
leased
Amount Amount
assets Amount Amount Amount Amount
incurred incurred Amount Amount Amount Amount
incurred incurred incurred incurred
during during incurred during incurred during incurred during incurred during
during this during prior during this during prior
this prior this period prior period this period prior period
period period period period
period period
Supor The Company Real 107,523.62
Group Shaoxing Supor estate 870,063.32 848,842.27 132,931.94 167,666.99 3,987,385.03
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Co., Zhejiang Supor
7,867,189.39 8,369,625.18 1,267,847.07 1,644,635.19 41,784,917.90
Ltd. Electrical
Wuhan Supor
81,420.00 2,679,300.75 2,647,142.15 372,324.41 512,987.90 12,199,661.48
Cookware
Shaoxing Supor
672,975.24 77,912.11 5,712,294.54
Housewares
P&R Products 68,114.29 59,600.00 40,000.00 5,138.94 149,565.14
(3) Fund allocation
Unit: RMB
Related parties Borrowed/lent amount Start date Expiry date Notes
Borrowing:
SEB S.A. 6,000,990.92 February 15, 2022 Open-ended Loan
(4) Key management's emoluments
Item Amount incurred during this period Amount incurred during prior period
Key management's emoluments RMB 15,193,300 RMB 14,815,300
Key management's Share-based payment
RMB 4,425,300 RMB 1,398,100
expenses
(5) Other related transactions
① Water and electricity fee Unit: RMB
Selling parties Purchasing parties Amount incurred during this period Amount incurred during prior period
Zhejiang Supor Electrical 106,169.13 481,419.80
Supor Group Co., Ltd. Wuhan Supor Cookware 142,934.79
Shaoxing Supor 61,419.20
② Property management, maintenance and berth fees Unit: RMB
Service renderer Purchasing parties Amount incurred during this period Amount incurred during prior period
The Company 182,857.14
Supor Group Co., Ltd. Zhejiang Supor Electrical 308,571.43 144,761.90
Wuhan Supor Cookware 354,285.71 164,285.71
③ Consulting fee Unit: RMB
Service renderer Purchasing parties Amount incurred during this period Amount incurred during prior period
The Company 1,061,677.75 687,084.08
Wuhan Supor Cookware 774,741.96 352,826.96
SEB ASIA LTD.
Shaoxing Supor 545,185.33 501,385.73
Zhejiang Supor Electrical 487,799.51 315,687.32
④ Cost of international shopping center Unit: RMB
Service renderer Purchasing parties Amount incurred during this period Amount incurred during prior period
SEB DEVELOPPMENT SAS Shaoxing Supor 358,098.81
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Zhejiang Supor Electrical 281,363.35
Wuhan Supor Cookware 5,919,010.41
⑤ R&D and Human Resources services Unit: RMB
Amount incurred during this Amount incurred during prior
Service renderer Purchasing parties
period period
Zhejiang Supor Electrical Saichuang (Zhejiang) Technology Co., Ltd. 483,081.29 456,149.12
GROUPE SEB VIETNAM JOINT STOCK
AFS 3,023,118.45 3,221,505.69
COMPANY
Saichuang (Zhejiang) Technology
Shaoxing Supor 3,018,082.00 2,629,960.37
Co., Ltd.
⑥ Warehousing service Unit: RMB
Service renderer Purchasing parties Amount incurred during this period Amount incurred during prior period
The Company 1,691,731.29 1,710,613.03
Wuhan Supor Cookware 629,912.40 629,912.40
SEB ASIA LTD.
Zhejiang Supor Electrical 677,368.19
Shaoxing Supor 1,764,063.02 2,058,892.25
⑦ Software use license, etc. Unit: RMB
Service renderer Purchasing parties 2022 2021
SEB DEVELOPPMENT SAS The Company 1,629,059.37
⑧ Pursuant to the Technical License Contract entered into between Wuhan Supor Cookware Co., Ltd and S.A.S SEB on December 29, 2013,
S.A.S SEB licensed Wuhan Supor Cookware Co., Ltd compensated use of its patent of Household Appliance for Food Cooking under Pressure
with Elastomer Safety Valve and other four utility patents. According to related terms in the contract signed by both parties, use charges are accrued
at 3% of revenue from sales of products licensed. In the current period, Wuhan Supor Cookware Co., Ltd should pay S.A.S SEB technology use
charges of RMB 526,305.07 (2021: RMB 959,469.90), and as of December 31, 2022, a balance of RMB 94,651.13 has not been paid (December
31, 2021: RMB 59,092.58).
⑨ Pursuant to the Trademark License entered into between Wuhan Supor Cookware Co., Ltd and LAGOSTINA SPA. on December 15, 2014,
LAGOSTINA SPA licensed Wuhan Supor Cookware Co., Ltd for compensated use of its trademark "LAGE". According to related terms in the
contract signed by both parties, use charges are accrued at 4% of revenue from sales of products licensed. In the current period, Wuhan SUPOR
should pay LAGOSTINA SPA. trademark use charges of RMB 43,093.45 (2021: RMB 242,952.24), and as of December 31, 2022, a balance of
RMB 1,395,659.11 has not been paid (December 31, 2021: RMB 1,352,565.66).
⑩Pursuant to the Trademark License entered into between Omegna and LAGOSTINA SPA. on December 5, 2016, LAGOSTINA SPA licensed
Omegna for compensated use of its trademark "LAGE". According to related terms in the contract signed by both parties, use charges are accrued
at 4% of revenue from sales of products licensed. In the current period, Omegna should pay LAGOSTINA SPA. trademark use charges of RMB
66,105.73 (2021: RMB 296,857.06), and as of December 31, 2022, a balance of RMB 3,989,846.80 has not been paid (December 31, 2021: RMB
3,923,741.07).
Shaoxing Supor purchased and used particles product of air purifier and relevant technology in accordance with Agreement on Purchase and
Using for Particles of Air Purifier signed by Shaoxing Supor on April 25, 2016 with ETHERA. According to relevant terms in the contract signed
by both parties, Shaoxing Supor should pay technology transfer fee RMB 22,268.70 (2021: RMB 26,477.63) to ETHERA in current period, which
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2022 Annual Report of Zhejiang Supor Co., Ltd.
was calculated as per corresponding unit price of actual total sales. Until December 31, 2022, the remaining RMB 4,424.04 had not been paid yet
(December 31, 2021: RMB 4,508.27).
6. Receivables and payables by related parties
(1) Items receivable
Unit: RMB
Closing balance Opening balance
Items Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts
SEB ASIA LTD. 977,231,667.49 34,203,108.36 1,997,332,966.57 79,893,318.66
receivable:
S.A.S. SEB 838,044.35 29,331.55 6,147,139.48 245,885.58
TEFAL S.A.S. 3,220,589.96 112,720.65 8,875,016.25 355,000.65
SEB INTERNATIONAL SERVICE S.A.S. 3,296,335.17 115,371.73 4,644,231.13 185,769.25
GROUPE SEB MOULINEX 1,423,208.22 51,536.52 11,459,698.09 458,387.92
IMUSA USA LLC 3,605,881.82 126,205.86 1,014,864.16 40,594.57
Supor Group Co., Ltd. 11,010.00 550.50 4,899.50 244.98
WMF Consumer Goods (Shanghai) Co, Ltd. 152,845.67 5,349.60 186,011.75 7,440.47
GROUPE SEB CANADA 1,896,331.22 66,371.59 4,763,025.58 190,521.02
GROUPE SEB VIETNAM JOINT STOCK
14,774,836.65 517,119.28 14,256,667.31 570,266.69
COMPANY
GROUPE SEB ANDEAN S.A. 112,622.53 3,941.79 832.03 33.28
Wuhan Anzai Cookware Co., Ltd. 16,500.00 825.00
LAGOSTINA S.P.A. 173,612.18 6,076.43 563,856.28 22,554.25
Saichuang (Zhejiang) Technology Co., Ltd. 261,025.21 9,135.88 290,340.44 11,613.62
Total 1,007,014,510.47 35,247,644.74 2,049,539,548.57 81,981,630.94
Advance payment: Supor Group Co., Ltd. 171,428.57 71,520.00
Total 171,428.57 71,520.00
Other receivables: Supor Group Co., Ltd. 145,000.00 56,250.00 145,000.00 31,250.00
Total 145,000.00 56,250.00 145,000.00 31,250.00
(2) Payables
Unit: RMB
Items Related parties Ending book balance Beginning book balance
Accounts payable: Wuhan Anzai Cookware Co., Ltd. 17,508,276.00 25,709,129.31
WMF GROUPE GMBH 6,861,332.34 9,027,718.65
GROUPE SEB EXPORT 1,836,117.60
TEFAL S.A.S. 2,376,975.15 6,211,218.34
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2022 Annual Report of Zhejiang Supor Co., Ltd.
S.A.S. SEB 94,651.13 61,735.76
LAGOSTINA S.P.A. 5,386,105.91 6,012,269.93
GROUPE SEB MOULINEX 131,149.87 3,082,576.38
GROUPE SEB THAILAND 43,382.55 111,031.93
GROUPE SEB SINGAPORE 1,147,747.82
SEB INTERNATIONAL SERVICE S.A.S. 114,692.08 10,454.54
ETHERA 4,424.04 156,257.68
Saichuang (Zhejiang) Technology Co., Ltd. 578,673.08 282,079.64
Supor Group Co., Ltd. 3,621,694.75
WMF Consumer Goods (Shanghai) Co, Ltd. 42,630.61
Heshan Demei Tableware Co., Ltd. 53,230.00
Total 35,031,640.36 55,433,914.73
Contract liabilities: Supor Group Co., Ltd. 6,208,467.16 405,442.77
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. 305.31
Total 6,208,467.16 405,748.08
Other payables: Wuhan Anzai Cookware Co., Ltd. 50,000.00
SEB S.A. 13,886,668.74 6,839,932.07
Total 13,936,668.74 6,839,932.07
Lease obligation: Supor Group Co., Ltd. 36,660,807.71 43,864,152.61
Total 36,660,807.71 43,864,152.61
XIII. Share-based Payment
1. Overall information
Applicable □ Not applicable
Unit: RMB
Total equity instruments granted in current period 2,463,000.00
Total equity instruments exercised in current period 0.00
Total equity instruments expired in current period 24,000.00
The range of exercise price of stock options issued by the Company at 2021 Equity Incentive Plan: RMB 1/share, 3.08 years
the end of the period and the remaining period of the contract 2022 Equity Incentive Plan: RMB 1/share, 3.86 years
Other remarks:
Pursuant to the 2021 Restricted Stock Incentive Plan (Revised Draft) of Zhejiang Supor Co., Ltd. and Its Summary (hereinafter referred to as
"2021 Stock Incentive Plan") deliberated and approved in the Third Interim General Meeting of Shareholders 2021 via deliberation held on
December 30, 2021, the Company was to grant 1,209,500 restricted shares to incentive objects, and repurchased 1,209,500 share capital
successfully during the period from December 15, 2021 to December 21, 2021. The Company granted 1,209,500 shares at a price of RMB 1 per
share on January 6, 2022.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
Pursuant to the Proposal for 2022 Restricted Stock Incentive Plan (Draft) of Zhejiang Supor Co., Ltd. and Its Summary (hereinafter referred
to as "2022 Stock Incentive Plan") deliberated and approved in the First Interim General Meeting of Shareholders 2022 via deliberation held on
September 21, 2022, the Company was to grant 1,332,500 restricted shares to incentive objects, and repurchased 1,332,500 share capital
successfully during the period from May 31, 2022 to July 31, 2022. The Company granted 1,253,500 shares at a price of RMB 1 per share on
October 12, 2022.
The incentive plan for the year of 2021 is valid for 4 years from the date of completion for the registration of the restricted stock granted, of
which: the sales restriction periods shall be 24 months and 36 months respectively from the date of completion for the grant registration. If the
conditions for lifting the restriction are met, the restricted shares shall be lifted in two phases, that is, upon expiry of 24 months and 36 months
from the date of completion for the grant registration, for 50% and 50% of the total restricted shares applied for restriction lifting, respectively. As
of December 31, 2022, the remaining period of the above incentive plan is 3.08 years.
The incentive plan for the year of 2022 is valid for 4 years from the date of completion for the registration of the restricted stock granted, of
which: the sales restriction periods shall be 24 months and 36 months respectively from the date of completion for the grant registration. If the
conditions for lifting the restriction are met, the restricted shares shall be lifted in two phases, that is, upon expiry of 24 months and 36 months
from the date of completion for the grant registration, for 50% and 50% of the total restricted shares applied for restriction lifting, respectively. As
of December 31, 2022, the remaining period of the above incentive plan is 3.86 years.
The 12th Session of the Seventh Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For
disqualification of three Incentive Objects due to their resignation, the Company has repurchased and canceled 24,000 shares of Restricted Stock
at the price of RMB 1 per share.
2. Equity-settled share-based payment
Applicable □ Not applicable
Unit: RMB
Determination method for fair value of equity instruments on grant date According to the market price on the grant date
Based on the corresponding equity instruments of incentive targets, the
Determination method for the optimal estimate of the number of equity
performance of the Company and the forecast of future performance of
instruments expected to vest
the Company
The significant difference between this period estimate and last period None
Capital reserve accumulated due to equity-settled share-based payment 54,847,235.98
Total expenses incurred due to equity-settled share-based payment
54,847,235.98
transactions
Other remarks:
Note 1. According to the 2021 Annual Incentive Plan approved by the Third Interim General Meeting of Shareholders held on December 30, 2021,
on January 6, 2022, the Company granted 1,209,500 shares of the Company repurchased in 2021 to incentive targets, with the grant price of RMB
1.00 per share, decreasing the treasury shares by RMB 76,159,897.25, which reverse the share capital premium RMB 52,997,061.77 and the
insuffient part reverse undistributed profit at the beginning of the year of RMB 21,953,335.48. At the same time, the company confirmed the stock
repurchase obligation and increased treasury shares by RMB 1,209,500.00.
According to the 2022 Stock Incentive Plan adopted on the Company's First Interim General Meeting of Shareholders in 2022 on September 21,
2022, the Company repurchased 1,332,500 shares of its own stocks for the plan through centralized competitive bidding with self-owned capital,
adding RMB 69,398,019.65of treasury shares. On October 12, 2022, the Company granted 1,253,500 shares to the incentive object at a grant price
of RMB 1.00 per share, with a decrease of treasury share value of RMB 65,668,429.65, and reverse undistributed profit at the beginning of the
year of RMB 64,414,929.65. At the same time, the company confirmed its stock repurchase obligation and increased its treasury stock by RMB
1,253,500.00.
2. The impact of 2021 Equity Incentive Plan on the capital reserve is RMB 0 at the beginning of the period, and with an accrual of RMB
40,084,396.00 in the year, amounting to an accrued amount of RMB 40,084,396.00.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
The impact of 2022 Equity Incentive Plan on the capital reserve is RMB 0 at the beginning of the period, and with an accrual of RMB 14,762,839.98
in the year, amounting to an accrued amount of RMB 14,762,839.98.
XIV. Commitments and Contingencies
1. Contingencies
(1) Significant contingencies at the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
In 2016, a non-governmental patent holder filed a lawsuit to the subsidiary Shaoxing Supor in the name of infringing its patent. In 2020, the
relevant patents have been declared invalid by the Patent Reexamination Board of the State Intellectual Property Office, so the litigation risk
decreased. This case has not been settled yet. Based on the principle of conservatism, the Company still retains an estimated liability of RMB 5.15
million (December 31, 2021: RMB 5.15 million) on December 31, 2022. In 2020, export customers filed legal proceedings against Shaoxing Supor,
a subsidiary, on the grounds of user disputes. This case has not been settled yet. Based on the principle of conservatism, the Company still retains
an estimated liability of RMB 4 million (December 31, 2021: RMB 4 million) on December 31, 2022. In 2021, export customers filed claims for
quality problems against Shaoxing Supor, a subsidiary, on the grounds of user disputes. This case has not been settled yet. Based on the principle
of conservatism, the Company still retains an estimated liability of RMB 2 million (December 31, 2021: RMB 2 million) on December 31, 2022.
Contingent liabilities formed by financial guarantee and their financial impact
The Group signs tripartite acceptance agreements with distributors and banks, and the Group provides financing guarantee for the banks to
issue bank acceptance bills to the distributors. In the event that the Group endorses and assigns an acceptance bill obtained by the Group, and if
the distributor fails to repay the difference between the security and the amount of the acceptance bill after the maturity of the acceptance bill, the
Group will bear part of the loss of the difference that the bank has not recovered from the distributor. As at December 31, 2022, the risk exposure
undertaken by the Group was RMB 298,088,343.35 (December 31, 2021: RMB 317,459,647.06). and the estimated liabilities accrued by the
Company under the financial guarantee contracts for the risk exposure amounted to RMB 1,490,441.72 (December 31, 2021: RMB 1,587,298.24).
(2) A statement shall be given even if the Company has no significant contingencies to disclose.
The Company has no significant contingencies to disclose.
XV. Events after the Balance Sheet Date
1. Profit distribution situation
According to the profit distribution plan for 2022 adopted at the 19th Session of the Seventh Board of Directors of the Company on March
29, 2023, profit distribution is made based on the 805,116,907 shares at the end of 2022 (total capital stock of 808,654,476 shares at the end of
2022 deducted by 3,537,569 shares of repurchased shares in the Company’s special stock repurchase account), a cash dividend of RMB 30.30
(tax-inclusive) per 10 shares is distributed to all shareholders, and the total cash dividend is RMB 2,439,504,228.21. No bonus share will be
distributed or conversion from capital reserves to share capital is made this year. The undistributed profits of parent company at the end of the
reporting period were RMB 4,331,212,701.66, including the dividends to be distributed, i.e., RMB 2,439,504,228.21.
During the period from the disclosure of this profit distribution plan to the actual implementation date, if the Company's share capital changes
due to conversion of convertible bonds into stocks, share repurchases, equity incentive exercise, and refinancing and new share listing, it will be
executed based on the changed share capital, and the above distribution ratio remains unchanged.
This profit distribution plan shall be submitted to the Annual General Meeting of Shareholders for 2022 Fiscal Year for approval after adopted
by the Board of Directors.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
XVI. Other Important Matters
1. Segment information
(1) Determination basis and accounting policy of report segment
The Group establishes operating segment according to internal organizational structure, management requirement and internal report system;
determines report segment and disclose segment information based on Operating Segment.
Operating Segment refers to the Group's organization meeting following conditions: (1) The organization can yield income and cost in daily
activity; (2) The Group's management can appraise operating result of the organization regularly, so as to allocate resources on a targeted basis
and evaluate its performance; (3) The Group can obtain financial condition, operating result, cash flow and other relevant accounting information
of the organization. Two or more operating segments, which have similar economic characteristics and meet a certain condition, can be combined
into an operating segment.
The preparation of branch reports is conducted with the revenue of trans-branch transaction measured at the actual transaction price. The
accounting policy for branch report preparation is consistent with that used in Supor's financial statement.
The Group, with main product focused on cookware and SDA (small domestic appliances) in kitchen, establishes report segment based on
product and geographic segments and assets and liabilities shared by product segments is unable to be clearly distinguished.
(2) Financial information of reportable segments
Unit: RMB
Inter-segment
Item Cookware Electrical products Others Total
offsetting
Revenue from main
6,190,244,720.49 13,817,030,898.77 150,594,465.35 210,561,092.56 19,947,308,992.05
business
Cost of main business 4,383,104,883.51 10,474,846,879.11 132,486,379.43 210,635,554.12 14,779,802,587.93
(3) Other explanations
② Geographic segment
Information on the Group's income from external transactions and non-current assets (excluding financial assets and deferred income tax
assets, the same below) by region is shown in the following table. Income from external transactions is divided according to the location of
customers who receive services or purchase products. Non-current assets are classified as per the physical location of the assets (for fixed assets
and construction in progress) or the location where they are allocated to related business (for intangible assets) or the location of joint ventures
and associated enterprises.
Item Domestic Foreign Inter-segment offsetting Total
Revenue from main business 14,796,684,166.65 5,164,864,945.22 14,240,119.82 19,947,308,992.05
Cost of main business 10,474,351,714.07 4,319,025,358.69 13,574,484.83 14,779,802,587.93
Non-current asset 2,049,752,240.36 75,295,429.00 117,033,788.09 2,008,013,881.27
③ Major customers
Among the Group's customers, one customer (2021: 1) whose revenue from a single customer accounted for 10% or more of the Group's total
revenue was related party SEB S.A. and its subsidiaries, accounting for approximately 23.18% (2021: 30.94%) of the Group's total revenue.
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2022 Annual Report of Zhejiang Supor Co., Ltd.
XVII. Notes to Items of Parent Company Financial Statements
1. Accounts receivable
(1) Details on categories
Unit: RMB
Closing balance Opening balance
Categories Book balance Provision for bad debts Book balance Provision for bad debts
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Including:
Accounts
receivable
for
provision 385,536,357.7 374,598,742.7 27,825,217.2 742,333,802.
100.00% 10,937,615.03 2.84% 770,159,019.26 100.00% 3.61%
for bad 8 5 3 03
debts made
on the basis
of portfolio
Including:
Portfolio 1:
312,435,311.8 301,554,808.0 27,765,218.2 667,744,799.
age 81.04% 10,880,503.86 3.48% 695,510,017.57 90.31% 3.99%
6 0 4 33
portfolio
Portfolio 2:
59,938,992.4
low-risk 57,111,169.92 14.81% 57,111.17 0.10% 57,054,058.75 59,998,991.48 7.79% 59,998.99 0.10%
9
portfolio
Portfolio 3:
merged
14,650,010.2
related 15,989,876.00 4.15% 15,989,876.00 14,650,010.21 1.90%
1
parties
portfolio
385,536,357.7 374,598,742.7 27,825,217.2 742,333,802.
Total 100.00% 10,937,615.03 2.84% 770,159,019.26 100.00% 3.61%
8 5 3 03
Provision for bad debts made on the basis of portfolio:
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year 312,435,311.86 10,880,503.86 3.48%
Total 312,435,311.86 10,880,503.86
Explanation on the basis for determining such portfolio:
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 Book balance
Within 1 year (including 1 year) 385,526,579.20
1-2 years (including 2 years) 9,778.58
Total 385,536,357.78
(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
172
2022 Annual Report of Zhejiang Supor Co., Ltd.
Unit: RMB
Amount of changes in current period
Categories Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Provision for bad debts for
27,825,217.23 -16,887,602.20 10,937,615.03
accounts receivable
Total 27,825,217.23 -16,887,602.20 10,937,615.03
(3) Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of accounts Proportion in the total closing balance of Closing balance of
Entity name
receivable accounts receivable provision for bad debts
SEB S.A. and its subsidiaries 312,211,857.11 80.98% 10,927,415.00
Customer L 35,367,082.13 9.17% 35,367.08
Wuhan Supor Cookware 12,117,280.87 3.14%
Customer M 8,273,346.36 2.15% 8,273.35
Customer N 4,328,326.19 1.12% 4,328.33
Total 372,297,892.66 96.56%
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 1,174,381,191.82 1,845,295,351.20
Total 1,174,381,191.82 1,845,295,351.20
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 111,458.00
Fund pool 1,172,087,133.42 1,844,438,348.07
Temporary payment receivable 2,860,673.12 1,439,315.12
Personal deposit 339,400.93 356,338.04
Total 1,175,398,665.47 1,846,234,001.23
2) Provision for bad debts
Unit: RMB
Provision for bad debts Phase I Phase II Phase III Total
173
2022 Annual Report of Zhejiang Supor Co., Ltd.
Expected credit loss in the Expected credit loss in the
Expected credit loss in
entire duration (without entire duration (credit
future 12 months
credit impairment) impairment)
Balance on January 1, 2022 938,650.03 938,650.03
Balance on January 1, 2022 in the
current period
Withdrawal in the current period 78,823.62 78,823.62
Balance on December 31, 2022 1,017,473.65 1,017,473.65
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not applicable
Disclosure by ages
Unit: RMB
Ages Book balance
Within 1 year (including 1 year) 1,174,443,084.02
1-2 years 45,000.00
2-3 years 9,332.27
Over 3 years 901,249.18
4-5 years 5,000.00
Over 5 years 896,249.18
Total 1,175,398,665.47
3) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Categories Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Provision for bad debts of
938,650.03 78,823.62 1,017,473.65
other receivables
Total 938,650.03 78,823.62 1,017,473.65
4) Other receivables details of the top 5 closing balances by debtors
Unit: RMB
Proportion in the total Closing balance of
Nature of
Entity name Closing balance Ages closing balance of other provision for bad
receivables
receivables debts
Zhejiang Supor Electrical Fund pool 472,915,525.15 Within 1 year 40.24%
Wuhan Supor Cookware Fund pool 422,093,926.95 Within 1 year 35.91%
Hainan Supor E-commerce Company Fund pool 108,998,818.36 Within 1 year 9.27%
Omegna Fund pool 69,855,503.61 Within 1 year 5.94%
174
2022 Annual Report of Zhejiang Supor Co., Ltd.
Shanghai WMF Fund pool 59,032,256.42 Within 1 year 5.02%
Total 1,132,896,030.49 96.38%
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 subsidiaries 2,763,861,746.90 2,763,861,746.90 2,948,542,538.52 2,948,542,538.52
Investments in associates and
62,156,208.65 62,156,208.65 65,419,057.50 65,419,057.50
joint ventures
Total 2,826,017,955.55 2,826,017,955.55 3,013,961,596.02 3,013,961,596.02
(1) Investments in subsidiaries
Unit: RMB
Increase/decrease Closing
Opening balance Accrued Closing balance balance of
Invested unit Investment Investment
(book value) impairment Others (book value) impairment
increased decreased provision
provision
Wuhan Supor Pressure Cooker 240,428,244.41 240,428,244.41
P&R Products 20,804,297.92 20,804,297.92
Yuhuan Sales Company 2,990,149.81 2,990,149.81
Zhejiang Supor Electrical 770,267,854.79 7,115,779.00 777,383,633.79
Shaoxing Supor 639,411,908.49 7,430,650.00 646,842,558.49
Supor Vietnam 105,143,165.64 105,143,165.64
Wuhan Recycling 1,000,000.00 1,000,000.00
Omegna 10,000,000.00 10,000,000.00
Shanghai Marketing 5,000,000.00 5,000,000.00
Wuhan Supor Cookware 598,253,566.39 4,801,477.00 603,055,043.39
SEADA 11,890,622.45 11,890,622.45
Shanghai WMF 50,000,000.00 206,659.00 50,206,659.00
SSEAC 212,152,728.62 212,152,728.62
Zhejiang WMF 100,000,000.00 2,179,399.00 102,179,399.00
Zhejiang Supor LKA 100,000,000.00 648,199.00 100,648,199.00
Shaoxing Supor Housewares 50,000,000.00 4,519,526.00 54,519,526.00
Supor Water Heater 31,200,000.00 31,200,000.00
Hainan Supor E-commerce
570,248.00 570,248.00
Company
Total 2,948,542,538.52 27,471,937.00 212,152,728.62 2,763,861,746.90
175
2022 Annual Report of Zhejiang Supor Co., Ltd.
(2) Investments in associates and joint ventures
Unit: RMB
Increase/decrease
Closing
Opening Investment Closing
Investing Adjustment in Cash balance of
balance (book profit or loss Accrued balance (book
unit Investment Investment other Changes in dividend/profit impairment
value) recognized impairment Others value)
increased decreased comprehensive other equity declared for provision
by equity provision
income distribution
method
I. Joint Venture
II. Associated Enterprise
Wuhan
Anzai -
65,419,057.50 62,156,208.65
Cookware 3,262,848.85
Co., Ltd.
-
Subtotal 65,419,057.50 62,156,208.65
3,262,848.85
-
Total 65,419,057.50 62,156,208.65
3,262,848.85
4. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Main business 2,302,742,532.78 1,935,093,847.17 2,725,835,212.58 2,362,901,800.69
Revenue from other operations 61,817,745.45 54,008,950.20 102,659,846.65 97,824,871.55
Total 2,364,560,278.23 1,989,102,797.37 2,828,495,059.23 2,460,726,672.24
Information related to revenue:
Unit: RMB
Contract classification Total
Commodity type
Including:
Cookware and utensil 2,301,287,440.30
Other domestic appliances 63,272,837.93
Classified by business area
Including:
Domestic sales 465,944,081.10
Export sales 1,898,616,197.13
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
The revenue corresponding to the performance obligations under signed contracts and pending for fulfillment or not completely fulfilled at the end
of the current reporting period is RMB 2,796,093.48. Among them, RMB 2,796,093.48 is expected to be recognized in 2023.
176
2022 Annual Report of Zhejiang Supor Co., Ltd.
5. Investment income
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Investment income from long-term equity investments under the cost method 1,618,952,576.25 5,106,240,651.28
Income from long-term equity investments under the equity method -3,262,848.85 1,378,149.04
Loss from disposal of subsidiaries -62,518,037.73
Interest from term deposit 34,428,058.56 73,053,105.12
Investment income from disposal of transactional financial assets 1,534,045.79
Investment income of debt investment during the holding period 7,443,923.15 3,571,557.46
Total 1,596,577,717.17 5,184,243,462.90
XVIII. Supplementary Information
1. Breakdown of non-recurring profit or loss in the current period
Applicable □ Not applicable
Unit: RMB
Item Amount Notes
Profit or loss on disposal of non-current assets -1,189,107.57
Government subsidies included into the current profits and losses (except those that are closely
related to the Company's normal business operations, comply with national policies and regulations 199,599,828.51
and continuously available according to certain standard quota or quantity)
Enterprise restructuring costs, such as expenses for employee placement and integration costs -527,780.73
Except the effective hedging business related to the normal operation of the Company, profits and
losses from fair value changes caused by the held transactional finance assets and transactional
24,264,345.88
financial liabilities, and investment 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 9,796,376.97
Minus: influenced amount of income tax 52,414,885.25
Influenced amount of minority shareholders' equities 67,216.12
Total 179,461,561.69 --
Other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses:
□ Applicable Not applicable
The Company does not have other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits
or losses.
Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of the Information of
Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□ Applicable Not applicable
177
2022 Annual Report of Zhejiang Supor Co., Ltd.
2. Return on net assets and earnings per share
Earnings per share
Weighted average return
Profit of the reporting period Basic earnings per share Diluted earnings per share
on net assets
(RMB/share) (RMB/share)
Net profit attributable to shareholders of ordinary shares 27.89% 2.565 2.564
Net profit attributable to shareholders of ordinary shares
25.47% 2.343 2.341
after deducting non-recurring profit or loss
3. Financial Data Difference on Principle of Domestic and Oversea Accounting
(1) Net profit and net assets discrepancies in financial statements disclosed separately under International Accounting
Standards and Chinese Accounting Standards
□ Applicable Not applicable
(2) Net profit and net assets discrepancies in financial statements disclosed separately under Overseas Accounting
Standards and Chinese Accounting Standards
□ Applicable Not applicable
(3) The reason of accounting data difference under domestic and foreign accounting standard shall be explained. If
the data audited by the foreign audit organization carries out the different adjustment, the name of foreign
organization shall be indicated.
None
Zhejiang Supor Co., Ltd.
Chairman: Thierry de LA TOUR D'ARTAISE
March 31, 2023
178
