2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Zhejiang Supor Co., Ltd.
2023 Semiannual Report
August 2023
1
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND
DEFINITIONS
The Board of Directors and the Board of Supervisors of Zhejiang Supor Co.,
Ltd. (hereinafter referred to as the "Company") and all its directors, supervisors
and senior executives warrant that this semiannual report is true, accurate and
complete, and does not contain any fictitious statements, misleading information
or significant omissions; all directors, supervisors and senior executives of the
Company undertake, separately and jointly, all responsibilities in relation to the
truth, accuracy and completeness hereof.
Mr. Thierry de LA TOUR D'ARTAISE, person in charge of the Company,
and Mr. Xu Bo, person in charge of accounting and person in charge of accounting
department (accountant in charge), hereby confirm that the financial report
enclosed in this semiannual report is true, accurate and complete.
All directors have attended the Board Meeting of semiannual report in
person.
It is of great uncertainty, for whether it can be realized or not depends on
multiple factors, including market change and effort of management team. Please
be careful of investment risks.
For details of the risk factors faced by the Company, please refer to Part X
"Risks Faced by the Company and Countermeasures" of Section III
"DISCUSSION AND ANALYSIS OF THE MANAGEMENT".
The Company plans not to distribute cash dividend, issue bonus shares, or
transfer reserve to common shares.
2
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Table of Contents
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND DEFINITIONS …………………………………………….…. 2
SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICATORS …………………………………………………….….. 6
SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEMENT ………………………………………………………... 10
SECTION IV CORPORATION GOVERNANCE ………………………………………………………………………………….... 22
SECTION V SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES …………………………………………………………... 25
SECTION VI SIGNIFICANT EVENTS ……………………………………………………………………………………………... 29
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS …………………………... 39
SECTION VIII INFORMATION ON PREFERRED SHARE ……………………………………………………………………….. 46
SECTION IX BONDS ………………………………………………………………………………………………………………... 47
SECTION X FINANCIAL REPORT …………………………………………………………………………………………….…... 48
3
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
CATALOG OF REFERENCE DOCUMENTS
I. 2023 Semiannual Report of the Company and Abstract with the signature of legal representative;
II. Accounting statements with signature of legal representative, person in charge of accounting and person in charge of accounting
department and seal of the Company;
III. Originals of all documents and announcements published in newspapers designated by CSRC during the reporting period.
Reference documents above shall be prepared by Securities Department of the Company.
4
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Definitions
Items to be Defined means Definitions
SZSE means Shenzhen Stock Exchange
CSRC means China Securities Regulatory Commission
Shenzhen Branch of China Securities Depository and Clearing Corporation
CSDCC means
Limited
The Company/this Company/Supor means Zhejiang Supor Co., Ltd.
SEB Internationale means SEB INTERNATIONALE S.A.S
SEB Group means SEB S.A.
Zhejiang Supor Electrical means Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd.
Shaoxing Supor means Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd.
Supor Vietnam means Supor (Vietnam) Co., Ltd.
Wuhan Recycling means Wuhan Supor Recycling Co., Ltd.
Wuhan Supor Cookware means Wuhan Supor Cookware Co., Ltd.
Wuhan Supor Pressure Cooker means Wuhan Supor Pressure Cooker Co., Ltd.
Omegna means Hangzhou Omegna Commercial Trade Co., Ltd.
Shanghai Marketing means Shanghai Supor Cookware Marketing Co., Ltd.
P&R Products means Zhejiang Supor Plastic & Rubber Co., Ltd.
Yuhuan Sales Company means Yuhuan Supor Cookware Marketing Co., Ltd.
SEADA means SOUTH EAST ASIA DOMESTIC APPLIANCES PTE. LTD.
AFS means AFS VIETNAM MANAGEMENT CO.LTD.
Shanghai WMF means Shanghai WMF Enterprise Development Co., Ltd.
Zhejiang WMF means Zhejiang WMF Housewares Co., Ltd.
Shaoxing Supor Housewares means Zhejiang Shaoxing Supor Housewares Co., Ltd.
Supor Large Kitchen Appliance means Zhejiang Supor Large Kitchen Appliance Co., Ltd.
Supor Water Heater means Zhejiang Supor Water Heater Co., Ltd.
GSIM or Indonesian Company means PT Groupe SEB Indonesia MSD
Hainan Supor E-commerce
means Hainan Supor E-Commerce Co., Ltd.
Company
Hainan Tefal Trade Company means Hainan Tefal Trade Co., Ltd.
2021 Equity Incentive Plan means 2021 Restricted Stock Incentive Plan (Draft)
2022 Equity Incentive Plan means 2022 Restricted Stock Incentive Plan (Draft)
5
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION II COMPANY FILE AND MAJOR FINANCIAL
INDICATORS
I. Company Profile
Short Form of the Stock: Supor Stock Code 002032
Short Form of the Original Stock (if
None
any)
Stock Exchange for Stock Listing Shenzhen Stock Exchange
Chinese Name of the Company 浙江苏泊尔股份有限公司
Short Form of Chinese Name of the
苏泊尔
Company (if any)
English Name of the Company (if
ZHEJIANG SUPOR CO., LTD.
any)
Short Form of English Name of the
SUPOR
Company (if any)
Legal Representative Thierry de LA TOUR D’ARTAISE
II. Contact Person and Contact Information
Board Secretary Representative of Securities Affairs
Name Ye Jide Fang Lin
Securities Department at 23F of Supor Building, Securities Department at 23F of Supor Building,
Address No.1772 Jianghui Road, New & High Tech No.1772 Jianghui Road, New & High Tech
Development Zone, Hangzhou, China Development Zone, Hangzhou, China
Tel. 0571-86858778 0571-86858778
Fax 0571-86858678 0571-86858678
Email yjd@supor.com flin@supor.com
III. Other Conditions
1. Way of contact
Whether the Company registered address, office address, post code, Company website, email address, etc. have changed within the
reporting period
□ Applicable Not-applicable
The Company registered address, office address, post code, Company website and email address have not changed during the reporting
6
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
period. Please refer to the 2022 Annual Report.
2. Place for information disclosure and archiving
Whether information disclosure and designated location have changed within the reporting period
□ Applicable Not-applicable
The securities exchange website and media name along with their respective URLs where the Company disclosed its semiannual re port,
as well as the location of the Company's semiannual report archives, remain unchanged during the reporting period. For specific details,
please refer to the 2022 Annual Report.
3. Other relevant information
Change situation of other relevant data within the reporting period
□ Applicable Not-applicable
IV. Major Accounting Data and Financial Indicators
Does the Company need to retroactively adjust or restate previous year's accounting data?
□ Yes No
Increase/decrease of
this reporting period
This reporting Same period of last
from the same
period year
period of the last
year (%)
Operating income (RMB) 9,982,616,440.73 10,323,979,744.82 -3.31%
Net profit attributable to shareholders of listed company (RMB) 880,618,279.78 932,849,164.03 -5.60%
Net profit attributable to shareholders of listed company with
857,420,949.15 909,114,292.90 -5.69%
non-recurring profit or loss deducted (RMB)
Net cash flows from operating activities (RMB) 555,040,511.12 1,308,844,866.33 -57.59%
Basic earnings per share (RMB/share) 1.097 1.155 -5.02%
Diluted earnings per share (RMB/share) 1.095 1.155 -5.19%
Increased by 0.98
Weighted average return on net assets 13.29% 12.31%
percentage points
Increase/decrease of
the end of this
End of this
End of last year reporting period
reporting period
from the end of last
year (%)
Total assets (RMB) 10,533,075,326.57 12,952,655,903.47 -18.68%
Net asset attributable to shareholders of listed company (RMB) 5,291,005,376.57 7,036,084,863.54 -24.80%
7
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
V. Financial Data Difference on Principle of Domestic and Oversea Accounting
1. Net profit and net assets discrepancies in financial reports disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable Not-applicable
No net profit and net assets discrepancies in financial reports disclosed separately under International Accounting Standards and
Chinese Accounting Standards existed during the reporting period.
2. Net profit and net assets discrepancies in financial reports disclosed separately under Overseas Accounting
Standards and Chinese Accounting Standards
□ Applicable Not-applicable
No net profit and net assets discrepancies in financial reports disclosed separately under Overseas Accounting Standards and Chinese
Accounting Standards existed during the reporting period.
VI. Non-recurring Profit or Loss Items and Amount
Applicable □ Not-applicable
Unit: RMB
Item Amount Notes
Profit and loss on disposal of non-current assets (including the write-off of provision for
-1,605,908.96
asset impairment)
Government subsidies included into the current profits and losses (except those that are
closely related to the Company's normal business operations, comply with national
5,811,842.88
policies and regulations and continuously available according to certain standard quota
or quantity)
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 25,750,454.86
transactional financial assets, transactional financial liabilities and available-for-sale
financial assets
Other non-operating incomes or expenditures except for the foregoing items 53,535.90
Minus: influenced amount of income tax 6,778,516.96
Influenced amount of minority shareholders' equities (after tax) 34,077.09
Total 23,197,330.63
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
8
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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.
9
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION III DISCUSSION AND ANALYSIS OF THE
MANAGEMENT
I. Main Business during the Reporting Period
(I) Main businesses of the Company
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 compa ny 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 appliance, large kitchen appliance and
H&PC appliance.
(1) Open fire cookware and kitchen utensils mainly include wok, pressure cooker, frying pan, sauce pan, steamer, ceramic slow
cooker, kettle, knife, spatula, thermal pot, thermos & flask, kitchen gadgets, crisper, etc.
(2) The small domestic appliance mainly includes electric rice cooker, electric pressure cooker, induction hob, soymilk maker,
electric kettle, juicer, slow cooker, electric steamer, electric chafing dish, food processor, baked machine, air fryer, etc.
(3) The large kitchen appliance mainly includes range hood, gas stove, disinfection cabinet, water purifier, embedded steaming oven,
water heater, integrated stove, etc.;
(4) The H&PC appliance mainly includes air purifier, clothes steamers, dust collector, 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.
(II) Industry development and market position of the Company
In 2023, transportation and tourism, catering service and other industries took the lead in benefiting from the recovery relatively
fast, while other industries, including cookware and small domestic appliances categories are more sluggish in consumer demands.
According to the analysis of consumption data in the first half of the year, the current consumer demand shows signs of a hierarchy.
On the one hand, consumer demand for high-quality and high-value products still maintains a rising trend; at the same time, more
consumers are willing to buy cost-effective products.
In the field of open fire cookware, online emerging platforms such as TikTok and PDD remained relatively fast-growing, while
traditional e-commerce platforms experienced a slight slump, therefore, the whole retail scale among online channels obtained slight
increase. However, the offline channels still remained subdued. According to monitoring data from AVC, in the first half of 2023,
across the eleven major categories of open fire cookware (such as woks, pressure cookers, frying pans, milk pots, stockpots, kettles,
casseroles, hot pots, steamers, cookware sets, enamel pots), traditional e-commerce platforms experienced an 11% year-on-year decline
in retail sales. Supor continued to outperform the industry in such sluggish market environment and continued to gain market shares
with online market share leading the second brand by more than 4 times and offline market share close to 50%, continuing to remain
the industry's top one. From the performance of specific categories, the performance of pressure cooker, casserole, steamer etc., that
10
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
relates to healthy concept were outstanding, and in terms of product materials, cookware made by healthy materials such as steel 316L
and titanium were more favored by consumers.
In the field of small domestic appliances, according to AVC aggregated data from January to June 2023 across all channels , small
domestic appliances (such as coffee machines, electric rice cookers, induction hobs, electric pressure cookers, soymilk maker, high-
speed blenders, mixers, juicers, electric kettles, electric steamers and slow cookers, health kettles, electric grills, tabletop single-
function ovens, and air fryers) reached a total sales of RMB 27.55 billion, with a year-on-year decrease of 8.5%. Despite the temporary
decline in industry sales scale, Supor still outperforms the industry with increasing online and offline market shares in the above
categories (excluding coffee machines) and were ranked as first and second in the industry respectively. From the performance of
specific categories, the products that are related to healthy concept such as electric steamers, soymilk maker and health kettles still
maintaining growth momentum.
(III) Operating condition 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 cons tant
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 continuously explored the consumer demand and kept accelerating the expansion of
products with core competitiveness. Also, combined with consumer demand for healthier, better-looking and other consumer demand,
Supor launched a variety of popular products such as the second generation of titanium uncoated non-stick wok, upgrading the titanium-
iron alloy overlay technology and improved its non-stick capabilities. In the category of uncoated wok, it held a significant lead in
sales. During the "618" e-commerce promotion period, it secured the first position on the "Tmall Uncoated Wok List". Another hot-
selling product is the lightweight thermo-spot non-stick wok, featuring a high-value creamy appearance and a lightweight pot body, it
ranked first in the "618 Tmall frying pan V list".
In the business of small domestic appliance, Supor always insists on combining consumer insight with differentiated product
innovation strategies, constantly launching smart, ingenious and healthy creative products. Under the premise that consumers' demand
for "one-person dish" is becoming more and more obvious, the Company has launched a series of small-capacity products, such as
small-capacity fast electric steamers, electric hot pots, soymilk makers and so on. In addition, the Company combined the Internet of
Things technology with Chinese cuisine cooking techniques, and launched an automatic cooking machine that can toss. During the
"618" e-commerce promotion period, it won the first place in the "List of Live Streaming Commodities of Kitchen Appliances Brands
in TikTok". Meanwhile, Supor seized the popularity of outdoor travel and launched a portable Mini Italian coffee machine, satisfying
the needs of coffee enthusiasts in outdoor scenes, and it achieved impressive sales results in the first half of the year.
In the business of H&PC appliances, Supor persistently facilitates the product category developments. For example, under the
cleaning appliances category, Supor newly launched a double-roller floor washer, which can easily eliminate hidden bacteria and guard
the health of the family with strong "edge" cleaning technology and electrolytic water clean sterilization. In terms of the clothes steamer
category, Supor continued 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 ranked second in the industry in the first half of 2023.
In the business of large kitchen appliances, Supor continued to enhance its brand construction and vigorously develop the integrated
stove category. For example, the newly-launched deep-cavity, far-infrared heating, steam-roasting integrated stoves, combining stove,
11
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
steaming oven, and storage cabinet, meet consumers' integrated demands very well. In terms of advantageous categories of stoves,
according to the monitoring data of AVC, the total online market share of Supor's stove category ranked first in the industry in the first
half of 2023.
2. Channel strategy
As for online channels, the Company established good cooperative relations with mainstream e-commerce platforms such as Tmall,
JD, PDD, Vipshop and TikTok, and continued to optimize the store matrix and product sales structure to enhance sales performance.
In the first half of 2023, the Company's e-commerce business maintained growth momentum, and its proportion in total domestic sales
further enhanced. In addition, the Company actively explores private traffic marketing and accelerated new member acquisition and
retention. The launch of the WeChat store this year was aimed to further tap into potential purchasing demands from WeChat me mbers
and followers to enhance customer loyalty. At the same time, the Company utilizes the marketing cloud platform, strengthens consumer
operations and lifecycle management, offering comprehensive product services to continuously enhance customer satisfaction. In the
first half of 2023, the Company’s online membership resulted in an 43% year-on-year increase.
As for offline channels, Supor has large-scale sales terminals, and in the context of reduced offline customer traffic and changes in
consumer behavior, the Company has continued to optimize its sales network, expand its brand alliances, integrate its brand resources,
and strengthen its terminal image management, which has enabled Supor to maintain a dominant position in the offline channel. In tier
one and tier two cities, while the traditional contemporary channels are still in decline, the Company maintained good growth through
community group purchases and home-delivery businesses. In tier three and tier four cities, the Company reinforces the comprehensive
cooperation with e-commerce platforms in O2O channels to create new increase points in these markets. In terms of B2B business, the
Company carries out points redemption business with a number of large and medium-sized enterprises, including banks and airlines,
to further expand its sales channels. At the same time, Supor has strengthened its cooperation with regional real estate deve lopers and
renovation companies to expand its large kitchen appliance business.
In terms of export sales, the Company's order quantity was affected by a sluggish global economy and weak demand in European
and American markets during the first quarter, resulting in its slight decrease from major export customers. From the second quarter,
the Company’s major export customers gradually digested their inventories and increased the number of orders, resulting in an overall
year-on-year increase of 7.18% in export sales in the second quarter.
II. Core Competitiveness Analysis
1. Excellent product innovation ability
Supor has long been focusing on product development, manufacturing and sales in the field of cookware and small domestic
appliance. In recent years, the Company has continued to improving the efficiency of R&D and established an innovation center at
headquarter level to enhance synergy of R&D resources within and outside the Company. Externally, the Company continues to
introduce new manufacturing processes and new materials through close cooperation with research institutions and universities.
Meanwhile, the Company has maintained close cooperation with SEB Group in innovation to introduce more new product categories
and technologies. Internally, the innovation center continuously improves the innovation incentive mechanism to encourage internal
innovation across all business units.
In the product design module, the Company integrates industrial design, user experience and consumption trend research into
product innovation, so as to further enhance the visual aesthetic feeling, sense of form and sense of experience of products. Meanwhile,
the Company has made great efforts to solve users' pain points and bring consumers a better product experience. Since the beginning
12
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
of 2023, the Company has won several design and creation related honors, such as "2023 AWE Award - Excellent Product Award",
"2023 IF Design Award", and "The First Batch of National Key Pilot Units for the Implementation of International Standards for
Intellectual Property Rights in Innovation Management in Zhejiang Province", etc.
2. Stable distribution network
Supor has a stable distribution team, and maintains a long-term, good cooperative relationship with distributors and agency
operators. In terms of online channels, the Company continues to promote the "Direct to Consumer" mode and "One-Basket Project",
and it has built a complete matrix of e-commerce stores to provide differentiated product mixes for different consumer groups together
with distributors and agency operators. In terms of offline channels, the Company has a huge number of sales terminals and service
outlets, which are stationed in large-scale mainstream superstores in tier one and two cities, and has high coverage in O2O channels in
tier three and four cities, so as to ensure that consumers can purchase the Company's products in a more convenient way.
3. Strong R&D and manufacturing capacity of open fire cookware and small domestic appliances
Supor has built up six R&D production bases, respectively in Yuhuan City, Hangzhou City, Shaoxing City (Yuecheng and Keqiao)
in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam. In particular, the annual production scale of
Wuhan Base and Shaoxing Base ranked the top in the industry. Over the years, the Company has continued to improve its industrial
efficiency, the strong R&D power and the highly professional R&D team provide a powerful guarantee for the quality and innovation
capacity of Supor products.
4. Synergistic effect of integration with SEB
Since 2006, the Company has started to establish strategic cooperation relationship with SEB 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 every year, and increased its overall business size and
manufacturing capacity. Meanwhile, the Company enhanced its the cooperation in aspects of production, R&D, quality control and
management with SEB Group, has continuously enhanced the product competitiveness of the Company through the continuous
introduction of new categories and technologies.
5. Professional advantage of multiple brands and categories in kitchen field
In terms of multi-brand operations, the Company also introduced a lot of high-end brands under SEB Group in addition to Supor
brand, such as WMF, LAGOSTINA, KRUPS, and TEFAL, so as to fully cover the mid-to-high end brands in kitchen field. As for
category expansions, the Company actively explores new categories such as large kitchen appliances and H&PC appliances in addition
to its traditional advantageous business such as open fire cookware and small domestic appliances. The Company has formed a strong
competition advantages thanks to its multiple brands layouts and product categories in kitchen field.
III. Main Business Analysis
Overview
During the reporting period, the Company achieved operating income of RMB 9,982,616,440.73, a year-on-year decrease of
3.31%. The Company realized a total profit of RMB 1,098,129,774.21, representing a year-on-year decrease of 12.36%. The earnings
per share was RMB 1.097 representing a year-on-year decrease of 5.02%. The Company's main business revenue was RMB
9,872,392,009.04, a year-on-year decrease of RMB 384,047,422.53, down by 3.74%. The Company's main business cost was RMB
7,352,664,336.65, a year-on-year decrease of RMB 270,049,050.54, down by 3.54%. The gross margin of the main business was
25.52%, a year-on-year decrease of 0.16%. Among them, the realized revenue from the main business of cooking utensils was RMB
13
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
2,516,239,088.69, a year-on-year decrease of 17.95%; the realized revenue from the main business of electric appliance was RMB
7,342,682,261.73, a year-on-year increase of 2.34%; the realized revenue from the main business of domestic sales was RMB
7,421,861,346.49, a year-on-year increase of 0.03%; the realized revenue from the main business of export sales was RMB
2,450,530,662.55, a year-on-year decrease of 13.61%.
Year-on-year alternation conditions of main financial data
Unit: RMB
Increase/dec
Same period of last
This reporting period rease YoY Variation reason
year
(%)
Operating income 9,982,616,440.73 10,323,979,744.82 -3.31%
Operating cost 7,444,829,256.71 7,670,449,954.61 -2.94%
Sales expenses 1,098,400,634.74 1,078,585,004.10 1.84%
Administrative expenses 189,032,788.40 188,658,026.76 0.20%
Financial expenses -42,251,541.59 -40,815,354.68 -3.52%
Mainly due to the decrease of total
Income tax expenses 218,895,998.85 319,256,554.10 -31.44% profits and comprehensive income
tax rate during the reporting period.
R&D investment 174,383,802.42 194,481,803.42 -10.33%
Mainly due to the decrease in cash
received from selling goods and
Net cash flows from operating
555,040,511.12 1,308,844,866.33 -57.59% rendering of services in the cash
activities
inflow from operating activities
during the reporting period.
Net cash flows from investing
1,087,172,418.94 883,025,051.67 23.12%
activities
Mainly due to the increase in
Net cash flows from financing
-2,702,496,787.61 -1,639,170,531.90 -64.87% dividend payments for 2022 Fiscal
activities
Year during the reporting period.
Net increase in cash and cash Mainly due to the increase in cash
-1,051,713,681.08 564,870,879.41 -286.19%
equivalents outflow from financing activities.
The profit structure or profit source within the reporting period has been significantly changed.
□ Applicable Not-applicable
The profit structure or profit source within the reporting period has no change.
Operating income constitution
Unit: RMB
This reporting period Same period of last year
Increase/decrea
Percentage to total Percentage to total se YoY (%)
Amount Amount
operating income operating income
Total operating
9,982,616,440.73 100% 10,323,979,744.82 100% -3.31%
income
By industry
Cookware 2,516,239,088.69 25.21% 3,066,665,527.99 29.70% -17.95%
14
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Electric appliance 7,342,682,261.73 73.55% 7,174,700,594.40 69.50% 2.34%
Others 123,695,090.31 1.24% 82,613,622.43 0.80% 49.73%
By products
Cookware and
2,516,239,088.69 25.21% 3,066,665,527.99 29.70% -17.95%
utensil
Electrical cooking 4,495,040,148.58 45.03% 4,588,882,638.90 44.45% -2.04%
Food processor
1,691,379,401.26 16.94% 1,568,135,937.20 15.19% 7.86%
appliance
Other household
1,279,957,802.20 12.82% 1,100,295,640.73 10.66% 16.33%
electric appliances
By areas
Domestic sales 7,501,764,475.40 75.15% 7,457,451,182.53 72.23% 0.59%
Export sales 2,480,851,965.33 24.85% 2,866,528,562.29 27.77% -13.45%
Remarks: "Others" by industry, "Other household electric appliances" by product, and region-based mode exceptionally include other
business incomes, the same below.
The industry, product, or region accounts for more than 10% of the Company's operating incomes or operating profits.
Applicable □ Not-applicable
Unit: RMB
Increase/decrease
Increase/decrease Increase/decrease
YoY (%)
Operating income Operating cost Gross margin YoY (%) YoY (%)
for operating
for operating cost for gross margin
income
By industry
Cookware 2,516,239,088.69 1,823,288,506.30 27.54% -17.95% -18.49% 0.48%
Electric
7,342,682,261.73 5,518,600,260.43 24.84% 2.34% 2.67% -0.24%
appliance
By products
Cookware and
2,516,239,088.69 1,823,288,506.30 27.54% -17.95% -18.49% 0.48%
utensil
Electrical
4,495,040,148.58 3,382,134,133.22 24.76% -2.04% -0.94% -0.84%
cooking
Food processor
1,691,379,401.26 1,336,989,391.45 20.95% 7.86% 7.43% 0.32%
appliance
Other household
electric 1,279,957,802.20 902,417,225.74 29.50% 16.33% 16.48% -0.09%
appliances
By areas
Domestic sales 7,501,764,475.40 5,371,477,113.45 28.40% 0.59% 1.95% -0.95%
Export sales 2,480,851,965.33 2,073,352,143.26 16.43% -13.45% -13.67% 0.21%
If the statistical caliber of the Company's operation business data is adjusted during the reporting period, the main business data for
the latest period after the statistical caliber is adjusted.
□ Applicable Not-applicable
15
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
IV. Analysis on Non-main Business
□ Applicable Not-applicable
V. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: RMB
End of this reporting period End of previous year Increase/
Percentage Percentag decrease Descriptions of major changes
Amount to total Amount e to total in
assets assets proportion
Mainly due to the increase in
dividend expenditure in cash
Monetary capital 1,859,681,088.15 17.66% 3,563,140,907.75 27.51% -9.85% outflow of the Company's
financing activities during the
reporting period.
Mainly due to the increase in
accounts receivable of export
Accounts receivable 2,253,001,396.06 21.39% 1,926,518,118.38 14.87% 6.52%
business at the end of the
reporting period.
No significant change during the
Inventories 1,937,374,529.58 18.39% 2,494,922,856.42 19.26% -0.87%
reporting period.
Long-term equity No significant change during the
61,763,872.57 0.59% 62,196,139.53 0.48% 0.11%
investment reporting period.
Mainly due to the increase in
Fixed assets 1,252,394,688.18 11.89% 1,303,075,391.03 10.06% 1.83% depreciation of fixed assets
during the reporting period.
Construction in No significant change during the
16,386,809.27 0.16% 12,005,654.73 0.09% 0.07%
progress reporting period.
No significant change during the
Right-of-use assets 189,573,789.61 1.80% 190,718,962.82 1.47% 0.33%
reporting period.
Mainly due to the decrease in
advance payments from some
Contract liabilities 480,254,227.80 4.56% 1,153,932,879.53 8.91% -4.35%
distributors by subsidiaries
during the reporting period.
No significant change during the
Lease obligation 142,355,428.33 1.35% 150,779,916.58 1.16% 0.19%
reporting period.
Mainly due to the increase in
Non-current assets due negotiable certificates of deposit
303,175,671.23 2.88% 32,157,534.25 0.25% 2.63%
within one year due within one year at the end of
the reporting period.
2. Major foreign assets conditions
□ Applicable Not-applicable
3. Assets and liabilities measured at the fair value
Applicable □ Not-applicable
Unit: RMB
16
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Profit and
Accumulate Impairme
loss from Amount of
d fair value nt loss of Amount of
Opening fair value purchasing of Other Closing
Item changes the selling of the
balance changes in the current changes balance
included current current period
the current period
into equity period
period
Financial assets
1. Transactional
financial assets
431,382,527. 7,299,684.6 250,000,000. 438,553,109. 250,129,103.
(excluding
79 9 00 35 13
derivative financial
assets)
2. Receivables 235,957,044. 238,173,347.
2,216,303.31
financing 34 65
3. Other debt 1,056,952,42 195,610,561. 167,788,701. 18,450,770.1 1,103,225,05
investments 4.68 63 68 7 4.80
1,724,291,99 7,299,684.6 445,610,561. 606,341,811. 20,667,073.4 1,591,527,50
Total
6.81 9 63 03 8 5.58
Financial liabilities 0.00 0.00
Content of other changes
Receivables financing: As the demand of daily fund management, Supor will discount or transfer an endorsed bill, the business mode
of related bank acceptance bill including not only collect contractual cash flow but sales as the target, so reclass the bank acceptance
bill as financial assets measured at the fair value with their changes included into other comprehensive incomes.
Debt investment: The business mode of negotiable certificates of deposit including collecting contractual cash flow and selling the
negotiable certificates of deposit as the target, so reclass the negotiable certificates of deposit as financial assets measured at the fair
value with their changes included into other comprehensive incomes. Interest revenue is accrued according to the actual interest rate
during the expected duration.
Are there any major changes about the valuation attribute of Company's main assets during the reporting period?
□ Yes No
4. Restrictions of assets and rights by the end of reporting period
Please see No. 53. "Assets with title or use right restrictions" of Part VII "Notes to Items of Consolidated Financial Statements" of
SECTION X "FINANCIAL REPORT" for details.
VI. Investment Situation Analysis
1. General condition
□ Applicable Not-applicable
2. Significant equity investment to be acquired during the reporting period
□ Applicable Not-applicable
17
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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
Accumulated investment amount
Initial loss from fair Purchase Sales amount
fair value at the end of the
Derivative investment investme value amount during during the Closing
changes period in the
type nt changes in the reporting reporting balance
included into Company's net
amount the current period period
equity assets at the end of
period
the reporting period
Bank - foreign exchange
4,744.22 -98.00 0 25,098.58 19,454.76 10,388.04 1.96%
derivative instruments
Total 4,744.22 -98.00 0 25,098.58 19,454.76 10,388.04 1.96%
Explanation on detailed
accounting policies and
specific accounting
The Company recognizes, measures, and presents in accordance with Accounting Standards for Business
principles of hedging
Enterprises No. 22 -- Recognition and Measurement of Financial Instruments, Accounting Standards for
business and whether they
Business Enterprises No. 24 - Hedging, and Accounting Standards for Business Enterprises No. 37 -
have been significantly
Presentation of Financial Instruments. There are no significant change compared to the previous reporting
changed during the
period.
reporting period compared
with the previous
reporting period
During the reporting period, the Company conducted derivative transactions and fair value hedging in
accordance with the variety and duration determined by the Board of Directors. During the reporting
Explanation on realized
period, the amount included in the current profit and loss was RMB-980,000 yuan, and the amount included
profit and loss during the
in equity was 0 yuan. The amount of profit or loss is entirely derived from the net fair value change formed
reporting period
by the forward settlement of foreign exchange and the hedged item. During the reporting period, the
Company did not engage in foreign exchange swap business, with no profit or loss or equity impact.
The value of hedging tools of the Company changed inversely to that of hedged foreign exchange accounts
receivable and payable, effectively achieving the risk management objectives.
During the reporting period, the Company conducted assessment on the fluctuation of the value of foreign
Explanation on hedging
exchange accounts receivable and payable, and signed forward exchange contracts with banks in the same
effect
currency. Such hedging tool was one of those approved by the Board of Directors.
The execution complied with the internal control requirements and operated within the approved quota to
ensure that the hedging tools match the hedged items in the scale, term, and currency.
18
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Capital source of
Self-owned capital
derivative investment
In order to hedge the foreign exchange risk in operating activities, reduce the impact of exchange rate
fluctuations, and give full play to the hedging function of foreign exchange derivative transaction, the
Company implemented foreign exchange derivative transaction business consistent with its business scale,
term, and currency.
(I) Risks of conducting foreign exchange 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, result ing
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
derivative holding during is based on the hedging principle to avoid risks from exchange rate fluctuations to the greatest extent, and
the reporting period based on market conditions, operation strategies shall be adjusted in time to improve hedging effects.
(including but not limited 2. System construction: the Company has established the Management Measures for Foreign Exchange
to market risk, liquidit y Derivative Transactions, in which the scope of authorization, approval procedures, key operation points,
risk, credit risk, operation risk management and information disclosure concerning foreign exchange derivative transactions are well
risk and law risk) defined, so that the conduct and risks of foreign exchange derivative transactions can be effectively
regulated.
3. Product selection: prior to any foreign exchange derivative transaction, it's necessary to select an FX
derivative that suits the company's business context best, and is highly liquid and risk through a
comparative analysis of various counterparties and products, before conducting business. The Company
used forward instruments for general hedge and swap contracts for rolling hedge.
4. Counterparty management: be prudent when selecting counterparties for foreign exchange derivatives
business. The company only conducts foreign exchange derivative transaction business with large
commercial banks and other foreign exchange organization with legal qualifications, thus avoiding
potential default and legal risks.
5. Management by specially-assigned persons: a special working group, set up by the Company's
management representatives, Fund Department, Financial Sharing Center, Audit Department, Securities
Department and other departments concerned, is responsible for the risk assessment, operation, recording
and supervision of foreign exchange derivative transactions. The working group is supposed to decide on
emergency mitigations in case of any significant changes in the market.
Changes in market prices
or fair values of invested
derivatives during the
The delivered foreign exchange derivatives were recorded as the profit and loss with instruments by the
reporting period, specific
Company. Changes in the fair value of undelivered foreign exchange derivatives were evaluated by the
methods used for analysis
comparison between the exchange rate of the derivative contract and the corresponding forward foreign
of the fair value of
exchange quotation provided by the contracting bank at the end of the period.
derivatives and the setting
of related assumptions and
parameters
Litigation-related situation
Not applicable
(if applicable)
The disclosure date of
approval announcement
by the Board of Directors March 31, 2023
of derivative investment
(if any)
The disclosure date of
Not applicable
approval announcement
19
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
by the General Meeting of
Shareholders of derivative
investment (if any)
Special opinions on
situations of the The independent directors have released the independent opinions about the Proposal for Implementation
Company's derivative of the Foreign Exchange Derivative Transaction Business of the Company, the details of which are shown
investment and risk in the Independent Opinion of Independent Directors on Relevant Matters disclosed in
control issued by http://www.cninfo.com.cn on March 31, 2023.
independent directors
2) Speculation derivative investment during the reporting period
□ Applicable Not applicable
During the reporting period, there was no speculative investment on derivatives.
5. Application of capital raised
□ Applicable Not-applicable
No capital raised was used in reporting period.
VII. Sales for Major Assets and Equity
1. Sales for major assets
□ Applicable Not-applicable
The Company did not sell major assets till the end of the reporting period.
2. Sales for major equities
□ Applicable Not-applicable
VIII. Analysis for Main Holding Companies and Joint Stock Companies
Applicable □ Not-applicable
Status of main subsidiaries and joint stock companies with influence on the Company's net profit exceeding 10%
Unit: RMB
Revenue
Company Registered Operating Operating
Company name from main Total assets Net assets Net profit
type capital income profit
business
Wuhan Supor
Subsidiar RMB 91.16 1,147,135,49 325,799,928. 1,452,022,70
Cookware Co., Cookware -2,742,722.02 -1,173,534.01
y million 5.74 23 6.38
Ltd.
Zhejiang Supor
Electrical RMB
Subsidiar Electrical 1,240,090,48 416,842,000. 1,853,742,87 46,996,102.7 39,695,390.5
Appliances 133.6971
y products 3.07 93 4.95 1 8
Manufacturing million
Co., Ltd.
20
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Zhejiang
Small
Shaoxing Supor
domestic
Domestic Subsidiar RMB 610 2,973,785,71 2,322,451,71 3,013,987,40 494,013,449. 420,424,459.
appliance,
Electrical y million 1.72 6.80 3.33 81 45
kitchen
Appliances Co.,
appliance
Ltd.
Subsidiary obtaining and disposal details during the reporting period
□ Applicable Not-applicable
IX. Structural Subject under the Company's Control
□ Applicable Not-applicable
X. Risks Faced by the Company and Countermeasures
1. Risk from macroeconomic fluctuation
In the first quarter of 2023, the consumer services sector enjoyed resilient growth, while retail demand for cookware and kitchen
appliances was relatively subdued. With the promulgation of a series of policies and measures in China to promote the growth of
consumption, the sales of home appliances improved sequentially in the second quarter, and demand for home appliances in the second
half of the year is expected to be gradually boosted. 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 exports, with the rebound in demand generated by the European and American markets after the de-stocking, it is
expected that the export business will continue to improve in the second half of the year, and the Company will cooperate with its
export customers to promote R&D of new product, efficiency improvements, cost reductions, and to enhance the competitiveness of
the Company's export business.
2. Risk from raw material price fluctuations
In the first half of 2023, the prices of main raw materials for cookware and small domestic appliances such as aluminum, copper,
stainless steel, and plastics declined and stabilized, which is beneficial for reducing production costs for industry enterprises. Supor
will continue to implement lean cost projects and improve internal productivity as to enhance the cost competitiveness of the
Company’s domestic and export business. Meanwhile, the Company is actively boosting the reasonable automation of production line,
improving the per capita labor output, and to reduce the impact caused by rise in labor cost.
3. Risk of intensifying market competitiveness
With the hierarchization of consumption in terms of cookware and home appliance market, high-end brands continue to engage in
channel penetration and adjust their product and pricing strategies in order to seize more market share, while an increasing number of
supply chain brands are reaching out to consumers through various e-commerce platforms and gaining a certain amount of sales volume
by relying on their relatively low prices, which has led to intensified market competition in the cookware and small domestic appliance
industry.
The Company will continue to adhere to its strategy centered on product innovation and launch higher value-added and high-
margin products to gain leading sales and market share in the mid-to-high price segments by continuously enhancing its innovation
capabilities. Meanwhile, the Company is also increasing the distribution of hot-selling products appropriately, giving full play to the
Company's comprehensive competitive advantages of multi-brand and multi-category, and continuously investing in marketing
resources in order to increase its market share.
4. Product export and exchange loss caused by exchange rate fluctuation
Recent exchange rate fluctuations may adversely affect export.
The Company's export business with its major export customer, SEB Group, has been settled in RMB, with low exchange rate risk.
21
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION IV CORPORATION GOVERNANCE
I. General Meetings of Shareholders and Interim General Meeting of Shareholders Held
during the Reporting Period
1. General meetings of shareholders during the reporting period
Investors
Session Meeting type Participati Convening date Date of disclosure Meeting resolution
on ratio
See Announcement on
Resolutions of the First
First Interim Interim General Meeting of
Interim General
General Meeting Shareholders 2023
Meeting of 8.55% January 19, 2023 January 20, 2023
of Shareholders (Announcement No.: 2023-
Shareholders
2023 007) disclosed on
http://www.cninfo.com.cn
for details
See Announcement on
Resolutions of the Annual
Annual General General Meeting of
Annual General
Meeting of Shareholders for 2022
Meeting of 8.04% April 25, 2023 April 26, 2023
Shareholders for Fiscal Year (Announcement
Shareholders
2022 Fiscal Year No.: 2023-041) disclosed on
http://www.cninfo.com.cn
for details
2. Interim General Meeting of Shareholders held at the request of preferred shareholders with restored
voting right
□ Applicable Not-applicable
II. Change of Directors, Supervisors and Senior Executives
During the reporting period, the Company elected the Eighth Board of Directors and the Eighth Board of Supervisors. The 1st Session
of the Eighth Board of Directors and the 1st Session of the Eighth Board of Supervisors were held on April 26, 2023 to select Board
Chairman and Chairman of the Board of Supervisors respectively. The General Manager, Chief Financial Officer, Board Secretary were
also appointed during the meeting. The Company directors, supervisors and senior executives did not change within the reporting
period. As for details, please see 2022 Annual Report.
III. Profit Distribution and Conversion from Capital Reserves to Share Capital during the
Reporting Period
□ Applicable Not-applicable
The Company planned not to distribute cash dividend, issue bonus shares, or convert capital reserves to share capital in the semi-
annual period.
22
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
IV. Implementation of Company's Equity Incentive Plan, Employee Stock Holding Plan or
Other Employee Incentive Measures
Applicable □ Not-applicable
1. Equity incentive
(I) About the 2021 Equity Incentive Plan
On August 30, 2022, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at 14th
Session of the Seventh Board of Directors and the 13th Session of the Seventh Board of Supervisors. For disqualification of 13 incentive
objects due to their resignation, the Company decided to repurchase and cancel 53,000 shares of restricted stock. In addition, on March
29, 2023, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at 19th Session of the
Seventh Board of Directors and the 18th Session of the Seventh Board of Supervisors. For the disqualification of 4 incentive objects
due to their resignation, the Company decided to repurchase and cancel 21,000 shares of restricted stock. The Proposal on
Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at the Annual General Meeting of Shareholders for
2022 Fiscal Year held on April 25, 2023. The Company repurchased and canceled 74,000 shares of restricted stock of 2021 Equity
Incentive Plan at the price of RMB 1 per share and paid totally RMB 74,000 to above resigned incentive objects. After confirmed by
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completed repurchase and
cancellation on June 29, 2023.
For detailed contents, see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of
Completion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times, China Securities Journal, Securities
Daily, and http://www.cninfo.com.cn on August 31, 2022, March 31, 2023 and June 30, 2023 (Announcement No.: 2022-050, 2023-
026 and 2023-052).
(II) About the 2022 Equity Incentive Plan
1. On January 31, 2023, the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects was reviewed and
adopted at the 18th Session of the Seventh Board of Directors and the 17th Session of the Seventh Board of Supervisors. The Company
planned to grant a total of 79,000 shares of postponed portion of restricted stock to 2 incentive objects. The Company completed the
registration of restricted stock grants on February 24, 2023.
For detailed contents, see Announcement of Grant of Postponed Portion of Restricted Stock to Incentive Objects and the
Announcement of Completion of Registration for Grant of Postponed Portion of Restricted Stock of 2022 disclosed on Securities Times,
China Securities Journal, Securities Daily, and http://www.cninfo.com.cn on February 2, 2023 and February 27, 2023 (Announcement
No.: 2023-011 and 2023-015).
2. On March 29, 2023, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at the
19th Session of the Seventh Board of Directors and the 18th Session of the Seventh Board of Supervisors. For the disqualification of 2
incentive objects due to their resignation, the Company decided to repurchase and cancel 1,750 shares of restricted stock. The Proposal
on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted at the Annual General Meeting of Shareholders
for 2022 Fiscal Year held on April 25, 2023. The Company repurchased and canceled 1,750 shares of restricted stock of 2022 Equity
Incentive Plan at the price of RMB 1 per share and paid totally RMB 1,750 to above resigned incentive objects. After confirme d by
23
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company completed repurchase and
cancellation on June 29, 2023.
For detailed contents, see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of
Completion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times, China Securities Journal, Securities
Daily, and http://www.cninfo.com.cn on March 31, 2023 and June 30, 2023 (Announcement No.: 2023-026 and 2023-052).
2. Implementation of the employee stock holding plan
□ Applicable Not-applicable
3. Other employee incentive measures
□ Applicable Not-applicable
24
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION V SOCIAL AND ENVIRONMENTAL
RESPONSIBILITIES
I. Major Environmental Issues
Do the listed company and its subsidiary belong to key pollutant discharging unit posted by the environmental protection
department?
Yes □ No
Policies and industrial standards related to environmental protection
According to the Technical Specification for Application and Issuance of Pollutant Permit General Programme (HJ942-2018),
the Self-monitoring Technology Guidelines for Pollution Sources - General Rule (HJ819-2017) and the national standards for pollutants
discharge, the environmental impact assessment documents of construction projects and their administrative licenses, and the
requirements in national environment monitoring technical specifications, the Company has improved its self-monitoring scheme,
which needs to be put on record by the competent department for ecological environment under its jurisdiction.
Administrative permissions for environmental protection
According to the relevant system records, the Company and its subsidiaries have obtained pollution discharge permits as
follows:
Name of the Company or subsidiary Completion date Valid period
The Company July 4, 2023 From June 30, 2023 to June 29, 2028
Zhejiang Supor Electrical June 25, 2023 From August 25, 2020 to August 24, 2025
Shaoxing Supor July 10, 2023 From July 10, 2023 to July 9, 2028
Wuhan Supor Cookware April 12, 2022 From September 11, 2020 to September 10, 2023
Type of Name of Numb
Discharge Total Excessi
Name of the main main er of Distribution Total
Dischar concentrat Executive pollutant discharge ve
Company or pollutant pollutant discha of discharge discharge
ge mode ion/intensi discharge standard amount dischar
subsidiary or specific or specific rge ports amount
ty checked ge
pollutant pollutant ports
Integrated
Wastewater
COD 30mg/L 2.21t 8.662t/a /
Discharge Standard
Wastewater (GB8978-1996)
discharge Indirect Discharge
Indirect
Water port of the for Emission
discharg 1
pollutants wastewater Limitation of
The e
Ammoniac station in Nitrogen and
Company 1.5mg/L 0.11t 0.433t/a /
al nitrogen plant area Phosphorus for
Industrial
Wastewater
(DB33/887-2013)
Organiz Emission Standard
Workshops
Air Sulfur ed ＜200 of Air Pollutants for
39 1#, 2# and 0.38t 3.06t/a /
pollutants Dioxide emissio mg/m Industrial Surface
6#
n Coating
25
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(DB33/2146-2018);
Integrated Emission
Standard of Air
Pollutants
(GB16297-1996);
Emission Standards
of Air Pollutants for
Industrial Kiln and
Furnace (GB9078-
1996)
Emission Standard
of Air Pollutants for
Industrial Surface
Coating
(DB33/2146-2018);
Integrated Emission
Nitrogen ＜300 Standard of Air
3.56t 14.66t/a /
Oxide mg/m Pollutants
(GB16297-1996);
Emission Standards
of Air Pollutants for
Industrial Kiln and
Furnace (GB9078-
1996)
Discharge Standard
of Pollutants for
Municipal
COD 10 mg/l 0.492 t 14.6 t/a /
Wastewater
Treatment Plant (DB
33/2169-2018)
Discharge Standard
Zhejiang General of Pollutants for
Water Indirect
Supor Ammoniac outlets of Municipal
pollutants discharg 1 0.08 mg/l 0.004 t 0.73 t/a /
Electrical al nitrogen wastewater Wastewater
e
(DW001) Treatment Plant (DB
33/2169-2018)
Discharge Standard
Total of Pollutants for
nitrogen Municipal
5.185mg/l 0.2252 t 2.667 t/a /
(calculated Wastewater
in N) Treatment Plant (DB
33/2169-2018)
Integrated
120.65mg/ Wastewater 40.229492
COD 224.657t/a /
L Discharge Standard t
(GB8978-1996)
Wastewater
Indirect Discharge
discharge
for Emission
Water port of the
Indirect Limitation of
Shaoxing pollutants wastewater
Ammoniac discharg 1 Nitrogen and
Supor station in 6.73mg/L 2.24299t 9.363t/a /
al nitrogen e Phosphorus for
plant area
Industrial
Wastewater
(DB33/887-2013)
Total Wastewater Quality
19.03mg/
nitrogen Standards for 6.345136t 33.447t/a /
L
(calculated Discharge to
26
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
in N) Municipal Sewers
(GB/T 31962-2015)
Intermitt
Integrated
ent
16.52mg/ Wastewater
COD discharg 3.685t 19.38t/a /
L Discharge Standard
e, whose
(GB8978-1996)
flow
rate is Wastewater
neither discharge
Water stable port of the
1
pollutants nor wastewater Wastewater Quality
Wuhan regular, station in Standards for
Ammoniac
Supor but it's plant area 0.67mg/L Discharge to 0.146t 1.94t/a /
al nitrogen
Cookware not an Municipal Sewers
impulsiv (GB/T 31962-2015)
e
discharg
e
Spray waste
Organiz Integrated Emission
gas
Air ed Standard of Air
VoCs 1 treatment 2.39mg/m 1.369t 12.16t/a /
pollutants emissio Pollutants
discharge
n (GB16297-1996)
port
Treatment of pollutants
Under special sewage treatment mechanism in the Company, all wastewater generated will gather at this station for central
treatment. After chemical precipitation and autocatalyzed oxidation, wastewater will meet the discharge standards and then be
discharged into urban wastewater pipes. At the same time, the Company has reclaimed water reuse facilities that can arrange water
treatment plan according to water quality. The production wastewater is first treated at the sewage treatment station and the n disposed
through the reclaimed water system for production. After that, part of the sanitary sewage after combined treatment enters municipal
sewage network.
The Company collects different waste gases and uses different treatment modes, and then discharges after reaching the standard.
The treatment processes involved are as follows: water curtain, spray tower, dry filter, low-temperature plasma, cyclone and filter dust
collector, activated carbon adsorption, UV photolysis purification, desorption and catalytic combustion and other combined treatments.
The Company has established a reliable wastewater and waste gas treatment system, and ensures that the discharge and disposal
of three wastes generated in the process of production and operation comply with relevant laws and regulations through regular
inspection, supervision and inspection mechanism and third-party inspection organizations. During the reporting period, the Company
did not exceed the standard discharge, and met the relevant requirements of the competent department for ecological environment.
Environmental emergency plan
The Company has completed the emergency plan for environmental emergencies and conducted regular emergency drills.
Environmental governance and protection input and payment of environmental protection tax
During the reporting period, the Company's total investment in environmental governance and protection was RMB 17.82 million ,
including RMB 0.025 million of environmental protection tax.
Environmental monitoring scheme
The Company has formulated an annual environmental monitoring scheme in accordance with relevant national laws and
regulations, and entrusted a qualified third party to carry out environmental monitoring.
Administrative penalties for environmental problems during the reporting period
None
27
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Other environmental information that shall be made public
None
Measures and effects taken to reduce carbon emissions during the reporting period
□ Applicable Not-applicable
Other environmental protection related information
None
II. Social Responsibilities
During the reporting period, the Company actively supported the national rural revitalization and common prosperity policies.
Adhering to its vision and mission, the Company embraced the philanthropic principle of "sharing a better life with each child". While
actively providing funds to improve basic education conditions in the central and western mountainous areas, the Company also
leveraged its industrial and resource advantages to support life education in urban and rural schools. The Company, families, and
schools have worked together to cultivate a new generation of youth who are forward-looking, love life, and care for their families.
In 2023, the Company continued to operate the "Supor Primary School" project and invested more in the life function of the rural
school. Currently, Supor has donated 28 rural schools in the central and western regions and plans to expand with a focus on improving
the living conditions of boarding schools in towns and villages. At present, 14 Supor primary schools have introduced online live-
streaming art and foreign language courses of U-light, so that rural students can also enjoy top-quality education.
The Company's new public welfare project "Supor – Little Artist of Life" is also supporting the improvement of urban and rural
school literacy education. At present, the Company has established cooperative relations with more than 10 urban and rural sc hools in
Hangzhou City, Shaoxing City, Lishui City, Xingyi City and other places to support these schools in building life education space,
carrying out labor classes, and building schools featuring life literacy education.
Supor employees also took an active part in public welfare. They sent letters and gifts to the children in the disaster areas in Henan
Province to give them warmth and encouragement. Employee volunteers of the Company made a special trip to Henan on Children's
Day, bringing companionship and joy to the children.
In the future, the Company will actively support the national policies of rural revitalization and common prosperity, give full play
to the advantages of Supor's business capabilities and resources, promote various charity programs and activities in terms of literacy
education for children in rural villages and broadening their horizons, and work with more like-minded charity partners to contribute
to a better life and better society in rural areas.
Indicator Measurement unit Quantity/fulfillment
Rural revitalization and common prosperity —— ——
Including: Investment amounts for funding poor students RMB 10,000
Coverage of rural students Person 6,000
Investment amounts for improving the education RMB 10,000 60
resources in rural areas
Awards received (content, grade) —— ——
One of 100 Companies of CCTV ESG Pioneers
Zhejiang Province Corporate Social Responsibility Outstanding
Report Award
28
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION VI SIGNIFICANT EVENTS
I. Commitments Fulfilled during the Reporting Period and Unfulfilled till the End of Reporting
Period by Actual Controllers, Shareholders, Related Parties, Acquirers and Other Commitme nt
Parties of the Company
□ Applicable Not-applicable
There were no commitments fulfilled during the reporting period and unfulfilled till the end of reporting period by actual controllers,
shareholders, related parties, acquirers and other commitment parties of the Company.
II. Occupied Non-business Capital of Listed Company for Controlling Shareholders and
Related Parties
□ Applicable Not-applicable
There was no non-operating occupation of capital of listed companies by controlling shareholders and their related parties of the
Company during the reporting period.
III. Illegal External Guarantee
□ Applicable Not-applicable
There was no illegal external guarantee of the Company during the reporting period.
IV. Employment and Disengagement of Certified Public Accountants
Whether the semiannual financial report has been audited
□ Yes No
The Company's semiannual report has not been audited.
V. Explanation on the Board of Directors and the Board of Supervisors on the "Non-standard
Audit Report" provided by the accounting firm during the reporting period
□ Applicable Not-applicable
VI. Explanation of the Board of Directors on Last Year's "Non-standard Audit Report"
□ Applicable Not-applicable
VII. Bankruptcy or Reorganization
□ Applicable Not-applicable
There was no bankruptcy, reorganization or related matters in the Company during the reporting period.
29
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
VIII. Litigation Matters
Significant litigations and arbitrations
□ Applicable Not-applicable
There was no significant litigation and arbitration occurred during the reporting period.
Other litigation matters
□ Applicable Not-applicable
IX. Punishment and Rectification
□ Applicable Not-applicable
X. Integrity of the Company, Its Controlling Shareholders and Actual Controllers
□ Applicable Not-applicable
XI. Major Related Transactions
1. Related transaction related to daily business
Applicable □ Not-applicable
Price Da
Percentag Market Refe
Pricing of Amount of Approved Exceed te
Contents e to Means of price of renc
Type of principle relate related transactio ing of
Correlated of related amount payments of available e for
Related party related of related d transaction n limit approv dis
relation transactio of same related same discl
transaction transactio trans (RMB (RMB ed limit clo
n transactio transaction transactio osur
n actio 10,000) 10,000) or not sur
n n e
n e
Wuhan Anzai Bank
Associated Purchase of Finished Contract
Cookware Co., - 6,362.51 1.02% No transfer or -
enterprise commodity products price
Ltd. notes
Wuhan Anzai Bank
Associated Purchase of Accessori Market
Cookware Co., - 2,562.67 0.41% No transfer or -
enterprise commodity es price
Ltd. notes
Same
controlling
Bank
GROUPE shareholder Purchase of Finished Contract
- 115.20 0.02% No transfer or -
SEB EXPORT with the commodity products price
notes
controlling
shareholder
Same
controlling
Bank
shareholder Purchase of Accessori Market
TEFAL S.A.S. - 473.73 0.08% No transfer or -
with the commodity es price
notes
controlling
shareholder
Same Bank
LAGOSTINA Purchase of Finished Contract
controlling - 39.36 0.01% No transfer or -
S.P.A. commodity products price
shareholder notes
SEB Same Bank
Purchase of Accessori Market
INTERNATI controlling - 8.41 0.00% No transfer or -
commodity es price
ONAL shareholder notes
30
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SERVICE with the
S.A.S. controlling
shareholder
Same
SEB
controlling
INTERNATI Bank
shareholder Purchase of Finished Contract
ONAL - 1.28 0.00% No transfer or -
with the commodity products price
SERVICE notes
controlling
S.A.S.
shareholder
Same
controlling
GROUPE Bank
shareholder Purchase of Accessori Market
SEB - 108.09 0.02% No transfer or -
with the commodity es price
MOULINEX notes
controlling
shareholder
Same Bank
SEB ASIA Purchase of Finished Contract
controlling - 4.33 0.00% No transfer or -
LTD. commodity products price
shareholder notes
WMF Same Bank
Purchase of Finished Contract
GROUPE controlling - 3,232.80 0.52% No transfer or -
commodity products price
GMBH shareholder notes
Same Bank
Emsa Taicang Purchase of Finished Contract
controlling - 23.50 0.00% No transfer or -
Co., Ltd. commodity products price
shareholder notes
GROUPE Same Bank
Purchase of Finished Contract
SEB KOREA, controlling - 7.29 0.00% No transfer or -
commodity products price
LTD shareholder notes
GROUPE Same Bank
Purchase of Finished Contract
SEB controlling - 18.29 0.00% No transfer or -
commodity products price
THAILAND shareholder notes
SEB
Same Bank
Professional Purchase of Finished Contract
controlling - 0.03 0.00% No transfer or -
(Shanghai) commodity products price
shareholder notes
Co., Ltd.
Wmf (heshan)
Same Bank
Manufacturing Purchase of Finished Contract
controlling - 11.70 0.00% No transfer or -
Company commodity products price
shareholder notes
Limited
Same Sale of Bank
SEB ASIA Finished Contract
controlling commoditie - 231,796.81 23.22% No transfer or -
LTD. products price
shareholder s notes
Same Sale of Bank
SEB ASIA Accessori Contract
controlling commoditie - 544.43 0.05% No transfer or -
LTD. es price
shareholder s notes
Same
controlling
Sale of Bank
shareholder Finished Contract
S.A.S. SEB commoditie - 713.42 0.07% No transfer or -
with the products price
s notes
controlling
shareholder
Same
controlling
Sale of Bank
shareholder Accessori Contract
S.A.S. SEB commoditie - 23.91 0.00% No transfer or -
with the es price
s notes
controlling
shareholder
TEFAL S.A.S. Same Sale of Finished Contract - 129.59 0.01% No Bank -
31
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
controlling commoditie products price transfer or
shareholder s notes
with the
controlling
shareholder
Same
controlling
Sale of Bank
shareholder Accessori Contract
TEFAL S.A.S. commoditie - 935.48 0.09% No transfer or -
with the es price
s notes
controlling
shareholder
Same
controlling
GROUPE Sale of Bank
shareholder Finished Contract
SEB commoditie - 639.30 0.06% No transfer or -
with the products price
MOULINEX s notes
controlling
shareholder
Company
controlled Sale of Bank
Supor Group Finished Market
by related commoditie - 746.21 0.07% No transfer or -
Co., Ltd. products price
natural s notes
person
Zhejiang Company
Nanyang controlled Sale of Bank
Finished Market
Pharmaceutica by related commoditie - 77.81 0.01% No transfer or -
products price
l Sales Co., natural s notes
Ltd. person
Same
SEB
controlling
INTERNATIO Sale of Bank
shareholder Accessori Contract
NAL commoditie - 1,178.10 0.12% No transfer or -
with the es price
SERVICE s notes
controlling
S.A.S.
shareholder
Wuhan Anzai Sale of Bank
Associated Accessori Contract
Cookware Co., commoditie - 1.50 0.00% No transfer or -
enterprise es price
Ltd. s notes
Same Sale of Bank
LAGOSTINA Accessori Contract
controlling commoditie - 12.91 0.00% No transfer or -
S.P.A. es price
shareholder s notes
Same Sale of Bank
IMUSA USA Finished Contract
controlling commoditie - 516.29 0.05% No transfer or -
LLC products price
shareholder s notes
Same Sale of Bank
IMUSA USA Accessori Contract
controlling commoditie - 2.14 0.00% No transfer or -
LLC es price
shareholder s notes
SEB
Same Sale of Bank
Professional Finished Contract
controlling commoditie - 10.82 0.00% No transfer or -
(Shanghai) products price
shareholder s notes
Co., Ltd.
GROUPE
SEB
Same Sale of Bank
VIETNAM Finished Contract
controlling commoditie - 482.26 0.05% No transfer or -
JOINT products price
shareholder s notes
STOCK
COMPANY
GROUPE Same Sale of Finished Contract Bank
- 466.99 0.05% No -
SEB controlling commoditie products price transfer or
32
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
CANADA shareholder s notes
GROUPE
Same Sale of Bank
SEB Accessori Contract
controlling commoditie - 23.55 0.00% No transfer or -
ANDEAN es price
shareholder s notes
S.A.
Total -- -- 251,270.71 -- -- -- -- -- --
Details of large sales return Not-applicable
Actual implementation of estimated total amount of
From January to June, 2023, the actual amount of daily related transactions between the
related transaction by category incurred during the
Company and SEB Group reached RMB 2,415.20 million.
period during the reporting period (if any)
Reason for the big difference between transacted
Not-applicable
price and market reference price (if applicable)
2. Related transactions from purchase and sales for assets or equity
□ Applicable Not-applicable
There were no related transactions from purchase and sales for assets or equity during the reporting period.
3. Related transaction from external co-investment
□ Applicable Not-applicable
There was no related transaction involving joint external investment during the reporting period.
4. Connected creditor's rights and debts
□ Applicable Not-applicable
There were no related creditor's rights and debts during the reporting period
5. Dealings with associated financial companies
□ Applicable Not-applicable
There was no deposit, loan, credit or other financial business between the Company and associated financial companies and the ir
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.
33
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
XII. Significant Contracts and Performance
1. Custody, contracting, and leasing
(1) Custody
□ Applicable Not-applicable
No custody was made during the reporting period.
(2) Contracting
□ Applicable Not-applicable
No contracting was made during the reporting period.
(3) Leasing
Applicable □ Not-applicable
Circumstances of leasing
Please refer to "15. Right-of-use assets" and "26. Lease obligation" of Part VII "Notes to Items of Consolidated Financial Statements"
of SECTION X "FINANCIAL REPORT".
The profit and loss brought to the company reaches more than 10% of the total profit of the Company during the reporting period.
□ Applicable Not-applicable
During the reporting period, there were no leasing items that brought 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
announce
Name of Actual Actual Collater Counter- is
ment Guarantee Guarantee Guarantee Fulfilled
guaranteed occurring guarantee al (if guarantee guaranteed
related to d amount type period or not
object date d amount any) (if any) by related
the
parties
guaranteed
amount
Supor's
distributors July 2022 - General July 2022
December
who meet 140,000 August 12,638.78 guarantee Cash Yes - February Yes No
14, 2021
certain 2022 and pledge 2023
conditions
Supor's
September
distributors September General
August 31, 2022 -
who meet 140,000 2022 - April 58,788.94 guarantee Cash Yes No No
2022 October
certain 2023 and pledge
2023
conditions
Supor's March 31, 140,000 May 2023 - 6,364.54 General Cash Yes May 2023 No No
34
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
distributors 2023 June 2023 guarantee -
who meet and pledge December
certain 2023
conditions
Total actual amount of
Total external guaranteed
external guarantee
amount approved during 140,000 77,792.26
during the reporting
the reporting period (A1)
period (A2)
Total external guaranteed Total actual external
amount approved at the guarantee balance at
280,000 27,927.36
end of the reporting the end of the
period (A3) reporting period (A4)
Guarantee of the Company to subsidiaries
Disclosure
date of
Whether it
announce
Name of Actual Actual Collater Counter- is
ment Guarantee Guarantee Guarantee Fulfilled
guaranteed occurring guarantee al (if guarantee guaranteed
related to d amount type period or not
object date d amount any) (if any) by related
the
parties
guaranteed
amount
Zhejiang
Shaoxing July 2022 - July 2022
April 1, General
Supor 270,000 December 67,550.55 None None - June Yes No
2022 guarantee
Housewares 2022 2023
Co., Ltd.
September
Wuhan Supor September
April 1, 2022 - General
Cookware 20,000 3,315 None None 2022 - Yes No
2022 December guarantee
Co., Ltd. June 2023
2022
Zhejiang
January
Shaoxing January
April 1, General 2023 -
Supor 270,000 2023 - April 28,868.88 None None No No
2022 guarantee October
Housewares 2023
2023
Co., Ltd.
January
Wuhan Supor January
April 1, General 2023 -
Cookware 20,000 2023 - April 1,890 None None No No
2022 guarantee October
Co., Ltd. 2023
2023
Zhejiang
May 2023
Shaoxing
March 31, May 2023 - General -
Supor 260,000 51,597 None None No No
2023 June 2023 guarantee December
Housewares
2023
Co., Ltd.
May 2023
Wuhan Supor
March 31, May 2023 - General -
Cookware 30,000 1,810 None None No No
2023 June 2023 guarantee December
Co., Ltd.
2023
Approved total
Total actual amount of
guaranteed amount
guarantee to
towards the subsidiaries 400,000 155,031.43
subsidiaries during the
during the reporting
reporting period (B2)
period (B1)
Total guaranteed Total actual guarantee
amounts to subsidiaries 700,000 balance for 84,165.88
approved at the end of subsidiaries at the end
35
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
the reporting period (B3) of the reporting period
(B4)
Guarantee of the subsidiaries to subsidiaries
Disclosure
date of
Whether it
announce
Name of Actual Actual Collater Counter- is
ment Guarantee Guarantee Guarantee Fulfilled
guaranteed occurring guarantee al (if guarantee guaranteed
related to d amount type period or not
object date d amount any) (if any) by related
the
parties
guaranteed
amount
Zhejiang
Shaoxing July 2022 - July 2022
April 1, General
Supor 270,000 December 11,900 None None - June Yes No
2022 guarantee
Housewares 2022 2023
Co., Ltd.
Zhejiang
January
Shaoxing January
April 1, General 2023 -
Supor 270,000 2023 - April 13,580 None None No No
2022 guarantee October
Housewares 2023
2023
Co., Ltd.
Approved total
Total actual amount of
guaranteed amount
guarantee to
towards the subsidiaries 0 25,480
subsidiaries during the
during the reporting
reporting period (C2)
period (C1)
Total actual guarantee
Total guaranteed
balance for
amounts to subsidiaries
0 subsidiaries at the end 13,580
approved at the end of
of the reporting period
the reporting period (C3)
(C4)
Total guaranteed amount of the Company (namely the total of the first three items)
Total approved Total guaranteed
guaranteed amount actual amount during
540,000 258,303.69
during the reporting the reporting period
period (A1+B1+C1) (A2+B2+C2)
Total approved Total actual guarantee
guaranteed amount at the balance at the end of
980,000 125,673.24
end of the reporting the reporting period
period (A3+B3+C3) (A4+B4+C4)
Proportion of the total amount of actual guarantee
23.75%
(i.e. A4+B4+C4) to 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- 97,745.88
liability ratio exceeding 70% (E)
Amount of the total guarantee exceeding 50% of
0
the net assets (F)
Total amount of the above three guarantees
97,745.88
(D+E+F)
Description of the guarantee liability occurred None
36
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
during the reporting period or there is evidence
that it is possible to bear joint and several liability
for settlement for the unexpired guarantee contract
(if any)
Explanation on external guarantee provided
None
against the established procedures (if any)
Note: The 19th Session of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2022 Fiscal Year of the
Company reviewed and adopted the Proposal on Guarantee for Wholly-owned Subsidiaries and Mutual Guarantee among Wholly-
owned Subsidiaries, and agreed that the Company and its wholly-owned subsidiaries would provide guarantees up to RMB 4 billion
for the wholly-owned subsidiaries in the year of 2023. Among them, the guaranteed amount for companies with higher than 70%
(inclusive) asset-liability ratio over was RMB 3 billion, and for companies with an asset-liability ratio below 70% was RMB 1 billion.
Specific description for using the composite guarantee situation
None
3. Entrusted financing
Applicable □ Not-applicable
Unit: RMB 10,000
The amount of
impairment accrued
Source of fund for Amount incurred of Overdue amount
Specific type Undue balance from overdue
entrusted financing entrusted financing unclaimed
financial investment
products
Bank financial
Self-owned capital 43,000 20,000 0 0
products
Financial products of
Self-owned capital 5,000 5,000 0 0
securities trader
Total 48,000 25,000 0 0
During the reporting period, financial products purchased and the principal and income recovered are as follows:
Details about the short-term financial products newly-purchased within first half year of 2023 can be found in the Announcement of
Progress of Using Excessive Cash to Purchase Financial Products (Announcement No.: 2023-006), the Announcement of Short-term
Investment Using Excessive Cash (Announcement No.: 2023-022) and the Announcement of Progress of Using Excessive Cash to
Purchase Financial Products (Announcement No.: 2023-054) released on the http://www.cninfo.com.cn.
Specific situation of high-risk entrusted finance with significant single amount, low security and poor liquidity
□ Applicable Not-applicable
Circumstances in which principal of entrusted financing may not be recovered or which may result in decrease in value
□ Applicable Not-applicable
4. Other significant contracts
□ Applicable Not-applicable
There were no other significant contracts involved in the Company during the reporting period.
XIII. Explanation on Other Important Matters
□ Applicable Not-applicable
37
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
The Company has no other important matters to be explained during the reporting period.
XIV. Important Matters of Subsidiaries
□ Applicable Not-applicable
38
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION VII CHANGES IN SHARE CAPITAL AND
PARTICULARS ABOUT SHAREHOLDERS
I. Changes of Shares
1. Changes of shares
Unit: share
Before change Increase/decrease in the period (+, -) After change
Convert
Share New Shares Share Proportio
Proportion ed Others Subtotal
number shares bonus number n
capital
I. Restricted Outstanding
3,110,073 0.38% -145,463 -145,463 2,964,610 0.37%
Shares
1. Shares held by the
0 0.00% 0 0 0 0.00%
state
2. Stated-owned legal
0 0.00% 0 0 0 0.00%
person shares
3. Other domestic
3,110,073 0.38% -145,463 -145,463 2,964,610 0.37%
shareholdings
Including: Shares held
0 0.00% 0 0 0 0.00%
by domestic legal entities
Shares held by
3,110,073 0.38% -145,463 -145,463 2,964,610 0.37%
domestic natural persons
4. Shares held by foreign
0 0.00% 0 0 0 0.00%
capitals
Including: Shares held
0 0.00% 0 0 0 0.00%
by foreign legal entities
Shares held by foreign
0 0.00% 0 0 0 0.00%
natural persons
II. Non-restricted
805,544,403 99.62% -1,800,356 -1,800,356 803,744,047 99.63%
Outstanding Shares
1. Common shares in
805,544,403 99.62% -1,800,356 -1,800,356 803,744,047 99.63%
RMB
2. Domestically listed
0 0.00% 0 0 0 0.00%
foreign shares
3. Overseas listed
0 0.00% 0 0 0 0.00%
foreign shares
4. Others 0 0.00% 0 0 0 0.00%
III. Sum of Shares 808,654,476 100.00% -1,945,819 -1,945,819 806,708,657 100.00%
Reasons for the change of shares
Applicable □ Not-applicable
39
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
1. Top management of the Company unlocked 25% of the shares registered under their names based on holding shares at last
transaction date of the last year.
2. On February 24, 2023, a total of 79,000 shares of restricted stock of postponed portion of the 2022 Restricted Stock Incentive Plan
were transferred to 2 incentive objects.
3. On April 10, 2023, the Company cancelled a total of 1,870,069 repurchased public shares. Upon the cancellation, the Company's
total share capital decreased from 808,654,476 to 806,784,407 shares.
4. On June 29, 2023, totally 75,750 shares of restricted stock that have been granted to resigned incentive objects but have not been
unlocked from restriction in 2021 and 2022 Restricted Stock Incentive Plans were repurchased and cancelled by the Company. Upon
the repurchase and cancellation, the Company's total share capital decreased from 806,784,407 shares to 806,708,657 shares.
Approval of change in shares
Applicable □ Not-applicable
1. On January 31, 2023, the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects was reviewed and adopted
at the 18th Session of the Seventh Board of Directors and the 17th Session of the Seventh Board of Supervisors, the Company agreed to
grant a total of 79,000 shares of postponed portion of restricted stocks to two incentive objects. The grant date was February 1, 2023.
After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the postponed portion of
restricted stocks in the Company's 2022 Restricted Stock Incentive Plan were transferred and registered under the name of two incentive
objects on February 24, 2023.
2. On March 29, 2023, the Proposal on Terminating the Public Shares Repurchase Plan was reviewed and adopted at the 19th Session
of the Seventh Board of Directors and the 18th Session of the Seventh Board of Supervisors of the Company, the Company plans to
cancel 1,870,069 shares held in the Company’s special stock repurchase account to reduce registered capital as authorized by the
Annual General Meeting of Shareholders for 2021 Fiscal Year. After confirmed by Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited, the Company completed the cancellation of the above shares on April 10, 2023.
3. On August 30, 2022 and on March 29, 2023, the Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed
and adopted respectively at the 14th Session of the Seventh Board of Directors and the 13th Session of the Seventh Board of Supervisors
and the 19th Session of the Seventh Board of Directors and the 18th Session of the Seventh Board of Supervisors. For the disqualificat ion
of 18 incentive objects due to their resignation, the Company has decided to repurchase and cancel 75,750 shares of restricte d stock at
the price of RMB 1 per share. The above matter of repurchase and cancellation of restricted stocks has been deliberated and approved
at the Annual General Meeting of Shareholders for 2022 Fiscal Year held on April 25, 2023. The Company has repurchased and
canceled 75,750 shares of restricted stock at the price of RMB 1 per share and paid totally RMB 75,750 to the above resigned incentive
objects. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the Company
completed the above matter of repurchase and cancellation of restricted stocks on June 29, 2023.
Transfer of shares changed
Applicable □ Not-applicable
After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, totally 79,000 shares of
postponed portion of restricted stocks under the Company's 2022 Restricted Stock Incentive Plan, were transferred and registered under
the name of two incentive objects on February 24, 2023.
Progress in the implementation of share repurchase
Applicable □ Not-applicable
(I) Public Shares Repurchase Plan 2022
On March 31, 2022, the Proposal on Public Shares Repurchase Plan was reviewed and adopted at the 12th Session of the Seventh
Board of Directors and the Annual General Meeting of Shareholders for 2021 Fiscal Year held on April 25, 2022. The Company
repurchased its own shares from the secondary market through concentrated bidding transactions. The maximum price was not higher
than RMB 54.78/share, and the bottom limitation of shares to be repurchased was not lower than 8,086,785 (inclusive), and the top
40
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
limitation of shares was not exceeding 16,173,570 shares (inclusive). Among which, 3,000,000 shares were intended for the future
implementation of equity incentive, and the remaining shares will be cancelled to reduce the registered capital. From May 6, 2022,
when the share repurchase scheme was first implemented, to February 8, 2023, totally 4,870,069 shares of the Company were
repurchased through centralized bidding transactions by special securities account, accounting for 0.60% of the Company's total share
capital. 1,253,500 and 79,000 shares of them were respectively transferred and registered under the name of incentive objects involved
in the 2022 Restricted Stock Incentive Plan on November 10, 2022 and February 24, 2023.
As the stock price in February and March continuously exceeded the maximum repurchase price disclosed in the share repurchase
plan and the validity period of the shares repurchase plan was about to expire, the Company comprehensively considered the actual
situations of the market and its own and deliberated and approved the Proposal on Terminating the Public Shares Repurchase Plan at
the 19th Session of the Seventh Board of Directors held on March 29, 2023. It decided to terminate the implementation of the above-
mentioned public shares repurchase plan. On April 10, 2023, based on the authorization of the Annual General Meeting of Shareholders
for 2021 Fiscal Year, the Company cancelled 1,870,069 shares in the special securities account for repurchase and reduced its registered
capital. After that, the total share capital of it decreased from 808,654,476 to 806,784,407 shares. The remaining 1,667,500 shares will
be used for implementing future equity incentive plans, and if the Company fails to do so within three years after the termination of
the Public Shares Repurchase Plan, those repurchased shares will be cancelled accordingly. Before completion of cancellations and
implementation of equity incentive plans, the repurchased shares are deposited in the Company’s special stock repurchase account.
Above repurchased shares are not entitled to profit distribution, capitalization of provident fund, issuance of new shares and allotment
of shares, pledge, voting rights at shareholders' meetings and other related rights.
For detailed contents, see Announcement on Completion of Cancellation of Repurchased Shares from Public Shares Repurchase
Plan (Announcement No.: 2023-038) disclosed on Securities Times, China Securities Journal, Securities Daily, and
http://www.cninfo.com.cn on April 12, 2023.
(II) Public Shares Repurchase Plan 2023
On March 29, 2023, the Proposal on Public Shares Repurchase Plan was reviewed and adopted at the 19th Session of the Seventh
Board of Directors. The Company repurchased its own shares from the secondary market through centralized bidding transactions. The
maximum price was not higher than RMB 63.95/share (which has been adjusted to RMB 60.93/share now after the implementation of
Profit Distribution Plan for 2022 Fiscal Year), and the bottom limitation of shares to be repurchased was not lower than 8,067,087
(inclusive), and the top limitation of shares was not exceeding 16,134,174 shares (inclusive). The period for the repurchase of shares
should not exceed twelve months from the date when the proposal was deliberated and approved by the General Meeting of
Shareholders. The Company initially implemented this shares repurchase plan on June 2, 2023. At the end of this reporting period, the
Company actually repurchased 3,160,000 shares, accounting for 0.39% of the Company's total share capital. The highest transac tion
price was RMB 51.20/share, the lowest one was RMB 44.37/share, and the total amount paid was RMB 150,244,900 (excluding
transaction costs). As of the disclosure date of this report, the actual number of repurchased shares by the Company was 6,700,000 ,
accounting for 0.83% of the Company's total share capital. The highest transaction price was RMB 52.79/share, the lowest one was
RMB 44.37/share, and the total amount paid was RMB 330,224,600 (excluding transaction costs).
The above matter of share repurchase was reviewed and adopted in Annual General Meeting of Shareholders for 2022 Fiscal
Year of the Company held on April 25, 2023, and the Repurchase Report on Public Shares was disclosed on April 26, 2023. For details,
please refer to the Repurchase Report on Public Shares (Announcement No.: 2023-044), Announcement on Adjusting Share Price for
Public Shares Repurchase Plan (Announcement No.: 2023-049), Announcement of Initial Repurchase of Public Shares
(Announcement No.: 2023-051), and Announcement of Progress of Public Shares Repurchase Plan (Announcement No.: 2023-050,
2023-053, 2023-057 and 2023-059) disclosed on Securities Times, China Securities Journal, Securities Daily, and
http://www.cninfo.com.cn.
Progress in the reduction of shareholding of repurchased shares through auction
□ Applicable Not-applicable
41
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Influence of shares changes on basic earnings per share and diluted earnings per share in the latest year and period, net assets per share
attributable to the Company's common shareholders and other financial indicators.
Applicable □ Not-applicable
Since tiny influence on basic earnings per share and diluted earnings per share, 1,945,819 public shares and restricted stocks
repurchased and cancelled in the current period generate no effect on other financial indicators (e.g. net assets per share attributable to
the Company's common shareholders).
Other contents that the Company thinks fit to disclose or the securities regulatory authority requires to disclose
□ Applicable Not-applicable
2. Changes of restricted outstanding shares
Applicable □ Not-applicable
Unit: share
Restricted Restricted Restricted
Restricted
outstandin outstanding outstandin
outstanding
g shares at shares g shares
Name shares at the Restriction reason Date of releasing restriction
the released in increased
end of the
beginning current in current
year
of the year period period
Unlocked 25% of the shares registered
Locked stocks of top under their names based on holding
Su Xianze 364,602 91,151 0 273,451
management shares at the last transaction date of the
last year
Unlocked 25% of the shares registered
Locked stocks of top under their names based on holding
Xu Bo 130,303 43,826 0 86,477
management shares at on the last transaction date of
the last year
Unlocked 25% of the shares registered
Locked stocks of top under their names based on holding
Ye Jide 39,143 14,786 0 24,357
management shares at the last transaction date of the
last year
Before November 19, 2023, 25% of the
Locked stocks of top
total shares can be unlocked each year,
Su Ming-Jui 137,025 2,925 3,975 138,075 management (locked
and all shares held will be completely
upon resignation)
unlocked after November 19, 2023.
For equity incentive
In the Company's 2021 Restricted Stock
restricted stocks,
Incentive Plan, 1,209,500 shares of
74,000 shares of
restricted stock were transferred to 293
restricted stock of
incentive objects on January 27, 2022.
resigned incentive
The above restricted stocks will be
Incentive objects objects that have been
unlocked in two phases after 24 months
of 2021 Equity 1,185,500 74,000 0 1,111,500 granted but failed to
from the grant date, with the unlocking
Incentive Plan meet the conditions of
proportion of each phase being 50%.
releasing restrictions
The first phase is expected to be
were repurchased and
unlocked on January 27, 2024. The
cancelled by the
second phase is expected to be unlocked
Company in the
on January 27, 2025.
current period.
For equity incentive In the Company's 2022 Restricted Stock
Incentive objects
restricted stocks, 1,750 Incentive Plan, 1,253,500 shares of
of 2022 Equity 1,253,500 1,750 79,000 1,330,750
shares of restricted restricted stock were transferred to 288
Incentive Plan
stock of resigned incentive objects on November 10,
42
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
incentive objects that 2022. A total of 79,000 restricted stock
have been granted but of the postponed portion were
failed to meet the transferred to two incentive objects on
conditions of releasing February 24, 2023. The above restricted
restrictions were stocks will be unlocked in two phases
repurchased and after 24 months from the grant date,
cancelled by the with the unlocking proportion of each
Company in the phase being 50%. The first phase is
current period. expected to be unlocked on November
10, 2024, and the first phase of the
postponed portion is expected to be
unlocked on February 24, 2025. The
second phase is expected to be unlocked
on November 10, 2025, and the second
phase of the postponed portion is
expected to be unlocked on February
24, 2026.
Total 3,110,073 228,438 82,975 2,964,610 -- --
II. Security Offering and Listing Information
□ Applicable Not-applicable
III. Number of Shareholders of the Company and Shareholding Information
Unit: share
Total number of preferred shareholder
Total number of common shareholders at the end whose voting right is recovered at the
13,595 0
of the reporting period end of reporting period (if any) (refer to
Note 8)
Shareholding information on common shareholders holding more than 5% shares or top 10 common shareholders
Number of Pledge, marking
Increase/De Number of
common Number of or freezing
Sharehol crease non-
shares at the restricted
Name Nature ding during the restricted Share
end of the common Status of
ratio reporting common numb
reporting shares share
period shares er
period
Foreign
SEB INTERNATIONALE S.A.S legal 82.64% 666,681,904 0 0 666,681,904
entity
Foreign
Hong Kong Securities Clearing
legal 9.18% 74,087,760 606,297 0 74,087,760
Company Ltd.
entity
Ningbo Bank-Zhongtai Xingyuan
Value-selected Flexible Complex Others 1.01% 8,165,740 -1,435,819 0 8,165,740
Securities Investment Funds
China Merchants Bank-Zhongtai
Yuheng Value-selected Flexible
Others 0.33% 2,649,513 -320,600 0 2,649,513
Complex Securities Investment
Funds
Foreign
BNP Paribas-Own Funds legal 0.27% 2,170,371 21,001 0 2,170,371
entity
43
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
China Construction Bank-Zhongtai
Yuanhe Value-selected Complex Others 0.24% 1,911,410 1,911,410 0 1,911,410
Securities Investment Funds
Industrial Bank-Xingquan Trend
Investment Complex Securities Others 0.22% 1,799,895 -399,961 0 1,799,895
Investment Funds
Industrial Bank-Zhongtai Xingwei
Value-selected Complex Securities Others 0.21% 1,708,227 -195,200 0 1,708,227
Investment Funds
ABC- CSI 500 Index Traded
Others 0.10% 822,021 822,021 0 822,021
Securities Investment Funds
China Merchants Bank-Baoying
New Value Flexible Complex Others 0.10% 800,000 800,000 0 800,000
Securities Investment Funds
Strategic investor or general corporate investor
who becomes top 10 common shareholder as a None
result of rights issue (if any) (see Note 3)
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities
Investment Funds, China Merchants Bank-Zhongtai Yuheng Value-selected
Flexible Complex Securities Investment Funds, China Construction Bank-Zhongtai
Explanation on the above-mentioned associated Yuanhe Value-selected Complex Securities Investment Funds and Industrial Bank-
relationships of shareholders or concerted actions Zhongtai Xingwei Value-selected Complex Securities Investment Funds belong to
Zhongtai 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 voting rights and abstaining None
from voting rights
Special instructions on the existence of
At the end of the reporting period, the Company held a total of 4,827,500 shares in
repurchase special accounts of the top 10
the special securities account for repurchase.
shareholders (if any) (see Note 11)
Shareholding information of top 10 common shareholders holding non-restricted shares
Number of non- Type of share
restricted common
Name of Shareholders
shares held at the end Type of share Share number
of the reporting period
RMB common
SEB INTERNATIONALE S.A.S 666,681,904 666,681,904
shares
RMB common
Hong Kong Securities Clearing Company Ltd. 74,087,760 74,087,760
shares
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex RMB common
8,165,740 8,165,740
Securities Investment Funds shares
China Merchants Bank-Zhongtai Yuheng Value-selected Flexible RMB common
2,649,513 2,649,513
Complex Securities Investment Funds shares
RMB common
BNP Paribas-Own Funds 2,170,371 2,170,371
shares
China Construction Bank-Zhongtai Yuanhe Value-selected Complex RMB common
1,911,410 1,911,410
Securities Investment Funds shares
Industrial Bank-Xingquan Trend Investment Complex Securities RMB common
1,799,895 1,799,895
Investment Funds shares
Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities RMB common
1,708,227 1,708,227
Investment Funds shares
RMB common
ABC- CSI 500 Index Traded Securities Investment Funds 822,021 822,021
shares
China Merchants Bank-Baoying New Value Flexible Complex 800,000 RMB common 800,000
44
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Securities Investment Funds shares
Explanation on associated relationship or
concerted actions among top 10 common
shareholders holding non-restricted shares, and
Same as above
between top 10 common shareholders holding
non-restricted shares and top 10 common
shareholders
Information on top 10 common shareholders
involved in securities margin trading business (if None
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.
IV. Shareholding Change of the Directors, Supervisors and Senior Executives
Applicable □ Not-applicable
Number of Number of Number of
Number of Number of Number of Number of
shares restricted restricted
increased decreased shares restricted
held at the stocks granted stocks
Position shares in the shares in the held at the stocks
Name Position beginning at the granted in
status current current end of the granted at the
of the beginning of the current
period period period end of the
period the period period
(share) (share) (share) period (share)
(share) (share) (share)
Su On-
Director 364,602 0 0 364,602 0 0 0
Xianze service
Cheung
General On-
Kwok 142,000 0 0 142,000 142,000 0 142,000
Manager service
Wah
Chief
On-
Xu Bo Financial 175,303 58,000 0 233,303 45,000 58,000 103,000
service
Officer
Vice General
Manager, On-
Ye Jide 59,143 21,000 0 80,143 20,000 21,000 41,000
Board service
Secretary
Total -- -- 741,048 79,000 0 820,048 207,000 79,000 286,000
V. Change Condition of Controlling Shareholders and Actual Controllers
Change of controlling shareholders during the reporting period
□ Applicable Not-applicable
No change of controlling shareholders during the reporting period.
Change of actual controllers during the reporting period
□ Applicable Not-applicable
No change of actual controllers during the reporting period.
45
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION VIII INFORMATION ON PREFERRED SHARE
□ Applicable Not-applicable
No preferred share existed during the reporting period.
46
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION IX BONDS
□ Applicable Not-applicable
47
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SECTION X FINANCIAL REPORT
I. Audit Report
Whether the semiannual report has been audited.
□ Yes No
The Company's semiannual financial report has not been audited.
II. Financial Statements
Unit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
Unit: RMB
Item June 30, 2023 January 1, 2023
Current assets:
Monetary capital 1,859,681,088.15 3,563,140,907.75
Settlement reserve
Loans to other banks
Transactional financial assets 250,129,103.13 431,382,527.79
Derivative financial assets
Notes receivable 20,847,819.64 27,325,952.95
Accounts receivable 2,253,001,396.06 1,926,518,118.38
Receivables financing 238,173,347.65 235,957,044.34
Advance payment 204,590,177.08 339,609,547.02
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 17,444,244.73 16,373,697.26
Including: Interest receivable
Dividend receivable
Reverse-REPO financial assets
Inventories 1,937,374,529.58 2,494,922,856.42
Contract assets
48
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Held-for-sale assets
Non-current assets due within one year 303,175,671.23 32,157,534.25
Other current assets 302,738,405.12 450,986,016.76
Total current assets 7,387,155,782.37 9,518,374,202.92
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment 800,049,383.57 1,024,794,890.43
Long-term receivables
Long-term equity investment 61,763,872.57 62,196,139.53
Other equity instrument investment
Other non-current financial assets
Investment properties
Fixed assets 1,252,394,688.18 1,303,075,391.03
Construction in progress 16,386,809.27 12,005,654.73
Productive biological assets
Oil and gas assets
Right-of-use assets 189,573,789.61 190,718,962.82
Intangible assets 439,304,174.11 440,017,733.16
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 386,446,826.89 401,472,928.85
Other non-current assets
Total non-current assets 3,145,919,544.20 3,434,281,700.55
Total assets 10,533,075,326.57 12,952,655,903.47
Current liabilities:
Short-term borrowings
Central bank loan
Loans from other banks
Transactional financial liabilities
Derivative financial liabilities
Notes payable 1,395,862,500.00 1,057,611,900.00
Accounts payable 2,496,406,000.99 2,635,521,548.19
49
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Advance receipt
Contract liabilities 480,254,227.80 1,153,932,879.53
Proceeds from sale of repurchase financial assets
Deposit taken and interbank deposit
Proceeds from security transaction agency
Proceeds from security underwriting agency
Employee remuneration payable 229,513,760.42 289,075,428.50
Taxes payable 168,868,980.67 204,608,713.27
Other payables 139,535,730.90 137,729,222.63
Including: Interest payable
Dividend payable
Handling fee and commission payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 45,009,692.66 41,924,940.24
Other current liabilities 94,784,755.79 194,699,612.98
Total current liabilities 5,050,235,649.23 5,715,104,245.34
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 142,355,428.33 150,779,916.58
Long-term payables
Long-term employee remuneration payable 1,255,162.03 1,441,111.55
Estimated liabilities 12,085,095.50 12,640,441.72
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 155,695,685.86 164,861,469.85
Total liabilities 5,205,931,335.09 5,879,965,715.19
Owners' equities:
Share capital 806,708,657.00 808,654,476.00
50
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 152,329,663.57 125,368,989.44
Minus: Treasury share 238,197,429.87 99,724,823.49
Other comprehensive incomes -3,403,285.43 -20,454,823.26
Special reserve
Surplus reserve 282,083,639.52 356,924,811.32
General risk reserve
Undistributed profit 4,291,484,131.78 5,865,316,233.53
Total owners' equities belonging to parent company 5,291,005,376.57 7,036,084,863.54
Minority shareholders' equities 36,138,614.91 36,605,324.74
Total owners' equities 5,327,143,991.48 7,072,690,188.28
Total liabilities and owners' equities 10,533,075,326.57 12,952,655,903.47
Legal representative: Thierry de LA TOUR D’ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting department: Xu Bo
2. Balance sheet of parent company
Unit: RMB
Item June 30, 2023 January 1, 2023
Current assets:
Monetary capital 629,993,593.11 1,484,137,518.26
Transactional financial assets 250,129,103.13 200,131,817.00
Derivative financial assets
Notes receivable 2,800,000.00 1,342,003.33
Accounts receivable 439,220,534.56 374,598,742.75
Receivables financing 175,500.00 4,800,000.00
Advance payment 4,622,546.12 46,224,404.38
Other receivables 757,789,870.82 1,174,381,191.82
Including: Interest receivable
Dividend receivable
Inventories 158,583,828.45 164,679,339.53
Contract assets
Held-for-sale assets
Non-current assets due within one year 237,631,671.23 32,157,534.25
51
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Other current assets 232,289,624.40 388,309,086.23
Total current assets 2,713,236,271.82 3,870,761,637.55
Non-current assets:
Debt investment
Other debt investment 201,645,863.02
Long-term receivables
Long-term equity investment 2,838,869,242.08 2,826,017,955.55
Other equity instrument investment
Other non-current financial assets
Investment properties
Fixed assets 146,643,360.60 155,241,036.13
Construction in progress 605,070.15
Productive biological assets
Oil and gas assets
Right-of-use assets 3,242,932.45 3,752,480.47
Intangible assets 76,178,275.77 80,034,692.59
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 20,051,720.66 15,974,025.22
Other non-current assets
Total non-current assets 3,085,590,601.71 3,282,666,052.98
Total assets 5,798,826,873.53 7,153,427,690.53
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable 22,500,000.00 15,650,000.00
Accounts payable 166,697,216.29 193,807,274.54
Advance receipt
Contract liabilities 4,864,529.55 2,796,093.48
Employee remuneration payable 31,911,435.60 41,689,539.05
Taxes payable 38,951,827.44 23,453,381.53
Other payables 2,411,113,607.34 1,224,151,285.03
52
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Including: Interest payable
Dividend payable
Held-for-sale liabilities
Non-current liabilities due within one year 1,093,595.70 227,345.02
Other current liabilities 2,869,411.10 1,447,611.99
Total current liabilities 2,680,001,623.02 1,503,222,530.64
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 2,144,732.68 2,859,701.28
Long-term payables
Long-term employee remuneration payable 147,968.40 166,125.04
Estimated liabilities
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 2,292,701.08 3,025,826.32
Total liabilities 2,682,294,324.10 1,506,248,356.96
Owners' equities:
Share capital 806,708,657.00 808,654,476.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 229,314,861.54 202,697,741.40
Minus: Treasury share 238,197,429.87 99,724,823.49
Other comprehensive incomes
Special reserve
Surplus reserve 329,498,066.20 404,339,238.00
Undistributed profit 1,989,208,394.56 4,331,212,701.66
Total owners' equities 3,116,532,549.43 5,647,179,333.57
Total liabilities and owners' equities 5,798,826,873.53 7,153,427,690.53
53
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
3. Consolidated profit statement
Unit: RMB
Semiannual period Semiannual period
Item
in 2023 in 2022
I. Total Operating Incomes 9,982,616,440.73 10,323,979,744.82
Including: Operating income 9,982,616,440.73 10,323,979,744.82
Interest revenues
Premium earned
Revenue from handling fees and commissions
II. Total Operating Costs 8,925,480,649.92 9,158,859,522.93
Including: Operating cost 7,444,829,256.71 7,670,449,954.61
Interest expense
Expense of handling fees and commissions
Surrender value
Net payment for insurance claims
Net amount of withdrawn reserve fund for insured liability
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 61,085,709.24 67,500,088.72
Sales expenses 1,098,400,634.74 1,078,585,004.10
Administrative expenses 189,032,788.40 188,658,026.76
R&D expenses 174,383,802.42 194,481,803.42
Financial expenses -42,251,541.59 -40,815,354.68
Including: Interest expenses 7,200,648.89 4,810,441.61
Interest revenues 49,382,432.80 32,112,351.33
Plus: Other incomes 30,211,321.84 40,687,848.15
Investment income ("-" for loss) 31,013,219.53 38,216,844.32
Including: Investment income on associated enterprise and joint
-460,529.47 -457,219.85
venture
Income from derecognition of financial assets measured at
amortized cost
Exchange gain ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 129,103.13 550,529.85
Credit impairment loss ("-" for loss) -13,035,606.89 25,222,441.21
Asset impairment loss ("-" for loss) -5,771,681.15 -16,045,044.53
54
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Assets disposal income ("-" for loss) -997,982.47 -193,453.10
III. Operating Profit ("-" for Loss) 1,098,684,164.80 1,253,559,387.79
Plus: Non-operating income 1,689,086.57 2,288,254.03
Minus: Non-operating expense 2,243,477.16 2,896,308.83
IV. Total Profit ("-" for Total Loss) 1,098,129,774.21 1,252,951,332.99
Minus: Income tax expenses 218,895,998.85 319,256,554.10
V. Net Profit ("-" for Net Loss) 879,233,775.36 933,694,778.89
(I) By business continuity
1. Net profit under continuing operation ("-" for net loss) 879,233,775.36 933,694,778.89
2. Net profit under discontinuing operation ("-" for net loss)
(II) By ownership
1. Net profit attributable to the shareholders of the parent company ("-" for net
880,618,279.78 932,849,164.03
loss)
2. Minority shareholders' profit and loss ("-" for net loss) -1,384,504.42 845,614.86
VI. After-tax Net Amount of Other Comprehensive Incomes 17,969,332.42 11,179,909.75
After-tax net amount of other comprehensive income attributable to the owners
17,051,537.83 11,100,770.29
of parent company
(I) Other comprehensive incomes that cannot be reclassified into profit and
loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive incomes that cannot be transferred to gain and loss
under the equity method
3. Changes in the fair value of other equity instrument investments
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes that can be reclassified into profit and loss 17,051,537.83 11,100,770.29
1. Other comprehensive incomes that can be transferred to gain and loss
under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive incomes
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial statement 17,051,537.83 11,100,770.29
7. Others
After-tax net amount of other comprehensive incomes attributable to minority
917,794.59 79,139.46
shareholders
VII. Total Comprehensive Incomes 897,203,107.78 944,874,688.64
Total comprehensive incomes attributable to owners of parent company 897,669,817.61 943,949,934.32
Total comprehensive incomes attributable to minority shareholders -466,709.83 924,754.32
55
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
VIII. Earnings Per Share:
(I) Basic earnings per share 1.097 1.155
(II) Diluted earnings per share 1.095 1.155
For the enterprise merger under the same control in the current period, the net profit realized by the merged party before me rger was
RMB 0, and the net profit realized by the merged party during the prior period was RMB 0.
Legal representative: Thierry de LA TOUR D’ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting department: Xu Bo
4. Profit statement of the parent company
Unit: RMB
Semiannual period Semiannual period
Item
in 2023 in 2022
I. Operating Income 1,194,339,510.40 1,118,472,456.99
Minus: Operating cost 1,005,374,520.95 1,025,029,076.41
Taxes and surcharges 6,391,944.74 7,884,054.34
Sales expenses 15,107,839.17 14,001,016.71
Administrative expenses 64,044,074.29 64,126,174.81
R&D expenses 2,004,150.57 2,352,554.61
Financial expenses -32,823,697.01 -27,520,636.18
Including: Interest expenses 74,956.71 6,883,884.15
Interest revenues 25,712,716.21 28,750,182.79
Plus: Other incomes 3,527,610.88 6,194,324.12
Investment income ("-" for loss) 11,840,400.25 33,451,552.55
Including: Investment income on associated enterprise and joint venture -460,529.47 -457,219.85
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) 129,103.13
Credit impairment loss ("-" for loss) -2,598,181.78 8,948,497.00
Asset impairment loss ("-" for loss) -299,930.56 -162,535.03
Assets disposal income ("-" for loss) 95,194.01 -2,477.95
II. Operating Profit ("-" for Loss) 146,934,873.62 81,029,576.98
Plus: Non-operating income 45,121.42 294,087.79
Minus: Non-operating expense 1,312,764.27 1,642,475.77
III. Total Profit ("-" for Total Loss) 145,667,230.77 79,681,189.00
Minus: Income tax expenses 33,221,156.34 16,072,382.51
IV. Net Profit ("-" for Net Loss) 112,446,074.43 63,608,806.49
56
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(I) Net profit under discontinuing operation ("-" for net loss) 112,446,074.43 63,608,806.49
(II) Net profit under discontinuing operation ("-" for net loss)
V. After-tax Net Amount of Other Comprehensive Incomes
(I) Other comprehensive incomes that cannot be reclassified into profit and
loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive incomes that cannot be transferred to gain and loss
under the equity method
3. Changes in the fair value of other equity instrument investments
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes that can be reclassified into profit and loss
1. Other comprehensive incomes that can be transferred to gain and loss
under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive incomes
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial statement
7. Others
VI. Total Comprehensive Incomes 112,446,074.43 63,608,806.49
VII. Earnings Per Share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Semiannual period Semiannual period
Item
in 2023 in 2022
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of services 7,924,920,392.30 9,104,543,317.02
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
57
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Cash receipts from interests, handling fees and commissions
Net increase of loans from other banks
Net increase of repurchase capital
Net cash from security transaction agency
Tax refund received 131,101,803.34 288,937,060.38
Other cash receipts related to operating activities 57,545,486.47 66,261,772.81
Subtotal of cash inflows from operating activities 8,113,567,682.11 9,459,742,150.21
Cash payment for purchasing commodities and receiving services 4,978,905,125.78 5,387,151,906.60
Net increase of customer loans and advances
Net increase of central bank deposit and interbank deposit
Cash payment for insurance indemnities of original insurance contracts
Net increase of loans to other banks
Cash payment for interests, handling fees and commissions
Cash payment of policy dividend
Cash paid to and for employees 871,059,709.61 973,247,343.65
Taxes paid 576,347,884.12 714,021,716.57
Other cash expenses related to operating activities 1,132,214,451.48 1,076,476,317.06
Subtotal of cash outflows from operating activities 7,558,527,170.99 8,150,897,283.88
Net cash flows from operating activities 555,040,511.12 1,308,844,866.33
II. Net Cash Flows from Investing Activities:
Cash received from return of investments
Cash received from investment incomes 53,860,834.80 151,894,174.39
Net cash received from disposal of fixed assets, intangible assets and other long-
1,900.00 541,981.84
term assets
Net cash receipts from disposal of subsidiaries and other business units
Other cash receipts related to investing activities 2,647,094,578.70 1,380,000,000.00
Subtotal of cash inflows from investing activities 2,700,957,313.50 1,532,436,156.23
Net cash paid for the construction of fixed assets, intangible assets and other
73,784,894.56 99,411,104.56
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 1,540,000,000.00 550,000,000.00
Subtotal of cash outflows from investing activities 1,613,784,894.56 649,411,104.56
Net cash flows from investing activities 1,087,172,418.94 883,025,051.67
III. Net Cash Flows from Financing Activities:
58
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Cash from absorbing investments
Including: Cash received by subsidiaries from minority shareholder investment
Cash received from obtaining borrowings
Other cash receipts related to financing activities 79,000.00
Subtotal of cash inflows from financing activities 79,000.00
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of interests 2,439,504,228.21 1,559,494,958.68
Including: Dividends or profits paid by subsidiaries to minority shareholders
Other cash payments related to financing activities 263,071,559.40 79,675,573.22
Subtotal of cash outflows from financing activities 2,702,575,787.61 1,639,170,531.90
Net cash flows from financing activities -2,702,496,787.61 -1,639,170,531.90
IV. Impact of Change in Exchange Rate on Cash and Cash Equivalents 8,570,176.47 12,171,493.31
V. Net Increase in Cash and Cash Equivalents -1,051,713,681.08 564,870,879.41
Plus: Balance of cash and cash equivalents at the beginning of the period 2,395,932,752.38 2,443,731,679.06
VI. Balance of Cash and Cash Equivalents at the End of the Period 1,344,219,071.30 3,008,602,558.47
6. Cash flow statement of parent company
Unit: RMB
Semiannual period Semiannual period
Item
in 2023 in 2022
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of services 968,764,013.06 1,324,182,549.43
Tax refund received 52,436,667.54 114,517,829.38
Other cash receipts related to operating activities 18,459,582.37 19,758,321.08
Subtotal of cash inflows from operating activities 1,039,660,262.97 1,458,458,699.89
Cash payment for purchasing commodities and receiving services 783,891,523.17 1,012,862,505.92
Cash paid to and for employees 89,142,331.41 106,996,783.81
Taxes paid 28,289,765.89 50,991,057.87
Other cash expenses related to operating activities 50,106,557.48 57,637,041.82
Subtotal of cash outflows from operating activities 951,430,177.95 1,228,487,389.42
Net cash flows from operating activities 88,230,085.02 229,971,310.47
II. Net Cash Flows from Investing Activities:
Cash received from return of investments
Cash received from investment incomes 31,219,971.79 150,204,703.19
Net cash received from disposal of fixed assets, intangible assets and other long-
14,000.00
term assets
59
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Net cash receipts from disposal of subsidiaries and other business units
Other cash receipts related to investing activities 1,350,000,000.00 1,300,000,000.00
Subtotal of cash inflows from investing activities 1,381,219,971.79 1,450,218,703.19
Net cash paid for the construction of fixed assets, intangible assets and other
10,814,471.93 29,041,702.26
long-term assets
Cash paid for investment
Net cash paid for acquiring subsidiaries and other business units
Other cash payments related to investing activities 892,817,724.85 1,042,829,946.14
Subtotal of cash outflows from investing activities 903,632,196.78 1,071,871,648.40
Net cash flows from investing activities 477,587,775.01 378,347,054.79
III. Net Cash Flows from Financing Activities:
Cash from absorbing investments
Cash received from obtaining borrowings
Other cash receipts related to financing activities 1,650,034,224.45 1,255,053,202.49
Subtotal of cash inflows from financing activities 1,650,034,224.45 1,255,053,202.49
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of interests 2,439,504,228.21 1,559,494,958.68
Other cash payments related to financing activities 230,282,075.87 58,185,415.23
Subtotal of cash outflows from financing activities 2,669,786,304.08 1,617,680,373.91
Net cash flows from financing activities -1,019,752,079.63 -362,627,171.42
IV. Impact of Change in Exchange Rate on Cash and Cash Equivalents -26,143.91 4,142,335.13
V. Net Increase in Cash and Cash Equivalents -453,960,363.51 249,833,528.97
Plus: Balance of cash and cash equivalents at the beginning of the period 1,083,953,956.62 800,923,960.55
VI. Balance of Cash and Cash Equivalents at the End of the Period 629,993,593.11 1,050,757,489.52
7. Statement of Changes in Consolidated Owners' Equities
Amount in the current period
Unit: RMB
Semiannual period in 2023
Owners' equities belonging to parent company
Other equity instruments Other Minorit
y Total
Item
Minus: compre General Undistr shareho owners'
Share Preferr Capital Special Surplus Subtota
Perpetu Treasur hensive risk ibuted Others lders'
capital Others reserve reserve reserve l equities
ed y share income reserve profit equities
al bond
share s
I. Closing 808,65 125,36 - 356,92 5,865,3 7,036,0 7,072,6
99,724, 36,605,
Balance of Last 4,476.0 8,989.4 20,454, 4,811.3 16,233. 84,863. 90,188.
823.49 324.74
Year 0 4 823.26 2 53 54 28
60
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Plus:
Changes of
accounting
policies
Error
correction of
prior period
Enterpr
ise merger under
the same control
Others
II. Opening 808,65 125,36 - 356,92 5,865,3 7,036,0 7,072,6
99,724, 36,605,
Balance of 4,476.0 8,989.4 20,454, 4,811.3 16,233. 84,863. 90,188.
823.49 324.74
Current Year 0 4 823.26 2 53 54 28
III. Current - - -
- 138,47 - -
Period Increase 26,960, 17,051, 1,573,8 1,745,0 1,745,5
1,945,8 2,606.3 74,841, 466,70
("-" for 674.13 537.83 32,101. 79,486. 46,196.
19.00 8 171.80 9.83
Decrease) 75 97 80
(I) Total of 880,61 897,66 - 897,20
17,051,
comprehensive 8,279.7 9,817.6 466,70 3,107.7
537.83
incomes 8 1 9.83 8
(II) Capital
- - - -
invested and 26,960, 26,960, 26,960,
1,945,8 91,733, 86,136, 3,650,5
reduced by 674.13 674.13 674.13
19.00 144.12 735.12 90.00
owners
1. Common
shares invested
by owners
2. Capital
invested by other
equity instrument
holders
3. Amount of
share-based - - -
26,960, 26,960, 26,960,
payment included 75,750. 3,726,3 3,650,5
674.13 674.13 674.13
into owners' 00 40.00 90.00
equities
- - -
4. Others 1,870,0 88,006, 86,136,
69.00 804.12 735.12
- - -
(III) Profit 11,295, 2,450,7 2,439,5 2,439,5
distribution 563.32 99,791. 04,228. 04,228.
53 21 21
-
1. Appropriation 11,295,
11,295,
of surplus reserve 563.32
563.32
2. Appropriation
of general risk
reserve
3. Distribution to - - -
owners (or 2,439,5 2,439,5 2,439,5
shareholders) 04,228. 04,228. 04,228.
61
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
21 21 21
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
2. Application of
current period
- -
230,20
230,20 230,20
(VI) Others 5,750.5
5,750.5 5,750.5
0
0 0
IV Closing 806,70 152,32 238,19 - 282,08 4,291,4 5,291,0 5,327,1
36,138,
Balance of 8,657.0 9,663.5 7,429.8 3,403,2 3,639.5 84,131. 05,376. 43,991.
614.91
Current Period 0 7 7 85.43 2 78 57 48
Amount of last year
Unit: RMB
Semiannual period in 2022
Owners' equities belonging to parent company
Minorit
Other equity instruments Other y Total
Item
Minus: General Undistr
Share Preferr Capital compre Special Surplus Subtota shareho owners'
Perpetu Treasur risk ibuted Others
capital Others reserve hensive reserve reserve l lders' equities
ed y share reserve profit
al bond equities
share income
62
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
s
I. Closing 808,67 122,97 - 356,92 6,451,7 7,622,6 7,658,3
76,159, 35,668,
Balance of Last 8,476.0 0,340.2 41,522, 4,811.3 48,564. 39,752. 07,846.
897.25 094.06
Year 0 7 541.60 2 12 86 92
Plus:
Changes of
accounting
policies
Error
correction of
prior period
Enterpr
ise merger under
the same control
Others
II. Opening 808,67 122,97 - 356,92 6,451,7 7,622,6 7,658,3
76,159, 35,668,
Balance of 8,476.0 0,340.2 41,522, 4,811.3 48,564. 39,752. 07,846.
897.25 094.06
Current Year 0 7 541.60 2 12 86 92
III. Current - - -
- -
Period Increase 22,605, 11,100, 702,79 652,32 924,75 651,40
24,000. 16,788,
("-" for 249.89 770.29 6,551.8 5,549.6 4.32 0,795.3
00 982.02
Decrease) 9 9 7
(I) Total of 932,84 943,94 944,87
11,100, 924,75
comprehensive 9,164.0 9,934.3 4,688.6
770.29 4.32
incomes 3 2 4
(II) Capital
- - -
invested and 22,605, 21,404, 21,404,
24,000. 74,974, 76,150,
reduced by 249.89 889.90 889.90
00 397.25 757.24
owners
1. Common
shares invested
by owners
2. Capital
invested by other
equity instrument
holders
3. Amount of
share-based - - -
22,605, 21,404, 21,404,
payment included 24,000. 74,974, 76,150,
249.89 889.90 889.90
into owners' 00 397.25 757.24
equities
4. Others
- - -
(III) Profit 1,559,4 1,559,4 1,559,4
distribution 94,958. 94,958. 94,958.
68 68 68
1. Appropriation
of surplus reserve
2. Appropriation
of general risk
reserve
3. Distribution to - - -
63
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
owners (or 1,559,4 1,559,4 1,559,4
shareholders) 94,958. 94,958. 94,958.
68 68 68
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
2. Application of
current period
- -
58,185,
(VI) Others 58,185, 58,185,
415.23
415.23 415.23
IV Closing 808,65 145,57 - 356,92 5,748,9 6,970,3 7,006,9
59,370, 36,592,
Balance of 4,476.0 5,590.1 30,421, 4,811.3 52,012. 14,203. 07,051.
915.23 848.38
Current Period 0 6 771.31 2 23 17 55
8. Statement of Changes in Owners' Equities of the Parent Company
Amount in the current period
Unit: RMB
Semiannual period in 2023
Item
Share Other equity instruments Capital Minus: Other Special Surplus Undistri Others Total
64
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
capital reserve Treasury compreh reserve reserve buted owners'
Preferre Perpetua
Others share ensive profit equities
d share l bond
incomes
I. Closing
808,654, 202,697, 99,724,8 404,339, 4,331,21 5,647,17
Balance of Last
476.00 741.40 23.49 238.00 2,701.66 9,333.57
Year
Plus:
Changes of
accounting
policies
Error
correction of
prior period
Other
s
II. Opening
808,654, 202,697, 99,724,8 404,339, 4,331,21 5,647,17
Balance of
476.00 741.40 23.49 238.00 2,701.66 9,333.57
Current Year
III. Current
- - - -
Period Increase 26,617,1 138,472,
1,945,81 74,841,1 2,342,00 2,530,64
("-" for 20.14 606.38
9.00 71.80 4,307.10 6,784.14
Decrease)
(I) Total of
112,446, 112,446,
comprehensive
074.43 074.43
incomes
(II) Capital
- - - -
invested and 26,617,1 26,617,1
1,945,81 91,733,1 86,136,7 3,650,59
reduced by 20.14 20.14
9.00 44.12 35.12 0.00
owners
1. Common
shares invested
by owners
2. Capital
invested by
other equity
instrument
holders
3. Amount of
share-based
- - -
payment 26,617,1 26,617,1
75,750.0 3,726,34 3,650,59
included into 20.14 20.14
0 0.00 0.00
owners'
equities
- - -
4. Others 1,870,06 88,006,8 86,136,7
9.00 04.12 35.12
- -
(III) Profit 11,295,5
2,450,79 2,439,50
distribution 63.32
9,791.53 4,228.21
1.
-
Appropriation 11,295,5
11,295,5
of surplus 63.32
63.32
reserve
65
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
2. Distribution - -
to owners (or 2,439,50 2,439,50
shareholders) 4,228.21 4,228.21
3. Others
(IV) Internal
carry-over
within owners'
equities
1. Transfer of
capital reserve
to capital (or
share capital)
2. Transfer of
surplus reserve
to capital (or
share capital)
3. Surplus
reserve to
cover losses
4. Retained
earnings after
carrying over
amount of
changes in
defined benefit
plan
5. Retained
earnings after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
-
230,205,
(VI) Others 230,205,
750.50
750.50
IV. Closing
806,708, 229,314, 238,197, 329,498, 1,989,20 3,116,53
Balance of
657.00 861.54 429.87 066.20 8,394.56 2,549.43
Current Period
Amount of last year
Unit: RMB
Item Semiannual period in 2022
66
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Other equity instruments Other
Minus: Undistrib Total
Share Capital comprehe Special Surplus
Preferred Perpetual Treasury uted Others owners'
capital Others reserve nsive reserve reserve
share bond share profit equities
incomes
I. Closing
808,678,4 236,901,0 76,159,89 404,339,2 5,141,307 6,515,066
Balance of Last
76.00 53.81 7.25 38.00 ,982.39 ,852.95
Year
Plus:
Changes of
accounting
policies
Error
correction of
prior period
Others
II. Opening
808,678,4 236,901,0 76,159,89 404,339,2 5,141,307 6,515,066
Balance of
76.00 53.81 7.25 38.00 ,982.39 ,852.95
Current Year
III. Current - - -
- 22,605,24
Period Increase 16,788,98 1,572,036 1,532,666
24,000.00 9.89
("-" for Decrease) 2.02 ,909.43 ,677.52
(I) Total of
63,608,80 63,608,80
comprehensive
6.49 6.49
incomes
(II) Capital
- -
invested and - 22,605,24 21,404,88
74,974,39 76,150,75
reduced by 24,000.00 9.89 9.90
7.25 7.24
owners
1. Common
shares invested
by owners
2. Capital
invested by other
equity instrument
holders
3. Amount of
share-based - -
- 22,605,24 21,404,88
payment included 74,974,39 76,150,75
24,000.00 9.89 9.90
into owners' 7.25 7.24
equities
4. Others
- -
(III) Profit
1,559,494 1,559,494
distribution
,958.68 ,958.68
1. Appropriation
of surplus reserve
2. Distribution to - -
owners (or 1,559,494 1,559,494
shareholders) ,958.68 ,958.68
3. Others
(IV) Internal
carry-over within
67
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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
-
58,185,41
(VI) Others 58,185,41
5.23
5.23
IV Closing
808,654,4 259,506,3 59,370,91 404,339,2 3,569,271 4,982,400
Balance of
76.00 03.70 5.23 38.00 ,072.96 ,175.43
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 ZSS [2000] No. 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 distribut ion
of kitchen utensils, stainless steel products, daily hardware, small domestic appliances and cookware; products are cookware and small
domestic appliances.
68
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
The financial statement was released after the approval of the Company's Board of Directors on August 30, 2023.
By June 30, 2023, there were altogether 20 subsidiaries included in the scope of consolidated financial statement. See Note IX.
"Equity in Other Entities" for details.
IV. Preparation Basis of the Financial Statements
1. Preparation basis
The financial statements of Supor are prepared based on the 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, interpreta tions 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, Supor's accounting is made on acc rual
basis. Except for certain financial instruments, measurements in these financial statements are made on the basis of historical cost. If
an asset is impaired, corresponding impairment provision will be made in accordance with relevant regulations.
2. Continuing operation
The Company has the ability to continue operations for at least 12 months since the end of this reporting period, and there are no
important matters affecting the ability to continue operations.
V. Important Accounting Policies and Estimates
Prompt for specific accounting policies and estimates:
Supor 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. For details, please refer to descriptions of Note V. "9. Financial
instruments", "12. Inventories (3)", "16. Fixed assets (2)", "19. Intangible assets (1)", "26. Revenue".
1. Statement of abidance of the 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 June 30, 2023, semiannual operating results and cash flow in 2023 of the Company and
Supor on an authentic and intact basis. In addition, the financial statements of the Company and Supor conform to the disclosur e
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.
69
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
2. Accounting period
The accounting period of Supor is divided into annual period and interim period; an interim period refers to a reporting period
which is shorter than a whole fiscal year. Supor takes calendar year as the fiscal year, i.e., from January 1 to December 31.
3. Operating cycle
The normal operating cycle means the period from the time when Supor purchases the assets used for processing to the time of
realizing cash or cash equivalents. Supor takes 12 months as an operating cycle and uses it as a standard for classifying the liquidity of
assets and liabilities.
4. Recording currency
RMB is used in the main economic environment in which the Company and its domestic subsidiaries operate and the Company
and its domestic subsidiaries use RMB as the recording currency. Recording currency for foreign subsidiaries of the Company is
determined as VND, SGD and IDR separately based on the currency in main economic environment in which they operate. Supor use s
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 event of two or more separate enterprises combining into a reporting entity.
Enterprise merger is divided into the enterprise merger under the same control and enterprise merger not under the same control.
For transactions not under the same control, the purchasing party will consider whether to choose the simplified judgment method
of "concentration test" when judging whether the acquired asset portfolio constitutes a business. If the portfolio passes the concentration
test, it is judged that it does not constitute a business. Otherwise, it shall still be judged in line with business conditions.
When Supor acquires a group of assets or net assets that do not constitute a business, the purchase cost shall be allocated on the
basis of the relative fair value of the identifiable assets and liabilities acquired on the purchase date, and shall not be treated as per the
following accounting treatment methods for enterprise merger.
(1) Enterprise merger under the same control
If enterprises involved with merger are under the final control of the same party or same multiple parties before and after merger,
and for a non-temporary period, then this is 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 participating enterprise is the merged party. The merger date refers to the day when the merging party actua lly obtains
the control rights of the merged party.
The assets and liabilities obtained by the merging party shall be measured at the 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 this is an enterprise merger not under the same control. For enterprise merger not under the same control, the party which
has obtained the control rights for other combining enterprises on the purchase date will be considered as the purchasing party, and
70
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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 liabilit ies
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 me rger cost
larger than the fair value of identifiable net assets of the purchased party acquired by it on the purchase date shall be rec ognized 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 a nd 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 recognized 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 recognized, at the same time, the goodwill shall be reduced; if the goodwill is insufficient
for offset, the differential part shall be recognized as the current profits and losses; except for above conditions, in case the deferred
income tax assets are recognized to be related to the enterprise merger, they shall be included into the current profits and losses.
As for the enterprise merger not under the same control realized step by step through multiple transactions, it shall judge whether
the multiple transactions belong to the "package deal" according to No. 5 Notice about Printing and Issuing Accounting Standards for
Business Enterprises Explanation in Ministry of Finance (CK [2012] No. 19) and the judgment standard (refer to the Note V. "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 V. "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 income; in case that equity of the purchased party held before the purchase date is involved in other
comprehensive incomes, other comprehensive incomes 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 statements
71
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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 merger scope shall include the Company and all its subsidiaries, and "subsidiaries" refer 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, Supor will begin
to include them into the merger scope; subsidiaries will not be included into the merger scope from the date when Supor loses the
actual control right. As for the disposed subsidiaries, the operating results and cash flow before disposal date have been properly
included into the consolidated profit statement and consolidated cash flow statement; as for subsidiaries disposed in the current period,
the beginning amount of the consolidated balance sheet will not be adjusted. As for the subsidiary increased due to the enterprise
merger not under the same control, its operating results and cash flow after the purchase date have been properly included into the
consolidated profit statement and consolidated cash flow statement, and the beginning amount and contrast amount of the consolidated
financial statement shall not be adjusted. As for the subsidiary increased due to the enterprise merger under the same control and the
merged party under consolidation by merger, the operating results and cash flow from the beginning of the current period of the merger
to the merger date have been properly included into the consolidated profit statement and the consolidated cash flow statement, and
the contrast amount of the consolidated financial statement shall be adjusted simultaneously.
When consolidated financial statements are prepared, in case the accounting policies or accounting periods employed by the
subsidiary and the Company are different, it's required to make necessary adjustment on the subsidiary's financial statements according
to the Company's accounting policy and accounting period. As for 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 purcha se date.
All significant current balance and transaction and unrealized profits in the Group are offset in the preparation of consolidated
financial statement.
The shareholders' equities and current net profits or losses of subsidiaries that do not belong to the part owned by the Company,
shall be separately listed in the shareholders' equities and minority shareholders' profit and loss in the consolidated financial statement
as the minority shareholders' equities and profits and losses. The share in the current net profit or loss of the subsidiary that belongs to
minority shareholders' equities shall be set out as "minority shareholders' profit and loss" under net profit in the consolidated profit
statement. In case the losses of the subsidiary shared by minority shareholders exceed the share that shall be enjoyed by minority
shareholders in the subsidiary's shareholders' equities at the beginning of period, they shall be offset with minority shareholders' equities.
In case of losing the control right for the original subsidiary due to disposal of partial equity investment or other reasons, the
residual equity shall be measured again according to the fair value at the date when the control right is lost. The difference between the
sum of the consideration acquired by equity disposal and the fair value of residual equity and the share of net assets of the original
subsidiary that shall be enjoyed and is calculated continuously from the purchase date according to the original shareholding ratio shall
be included into the investment income of the current period when the control right is lost. As for other comprehensive incomes which
relate to the equity investment of the original subsidiaries, when the control right is lost, the accounting treatment shall be carried out
on the same basis as the subsidiary's direct disposal of relevant assets or liabilities. Thereafter, the residual equity of this part shall be
further measured in accordance with Accounting Standards for Business Enterprises No. 2 -- Long-term Equity Investment or
Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial Instruments. See Note V. "15.
Long-term equity investment" or Note V. "9. Financial instruments" for details.
If Supor disposes the equity investment to subsidiaries 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 articles, terms and conditions and the economic impact of various transactions for the disposal of the equity
investment to subsidiaries are subject to one or more of the following conditions, it generally indicates that it shall conduct accounting
72
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
treatment by taking the multiple transactions as a package deal: ① where these transactions are considered to be concluded at the same
time or made in the case of considering mutual influence; ② where these transactions as a whole can reach a complete business result;
③ where the occurrence of a transaction depends on the occurrence of at least one other transaction; ④ where one transaction alone is
not economical, but when being considered together with other transactions, it is economical. If it is not a package deal, every
transaction will be subject to the accounting treatment according to the following suitable principles, namely, "partially dispose the
long-term equity investment of subsidiary when the control right is not lost" (See Note V. "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). If the transactions for the disposal of the equity investment to subsidiary until losing the control right are a package deal,
they are regarded as a transaction that disposes the subsidiary and loses the control right for the accounting treatment; 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 Supor includes cash on hand and the deposit that can be used for making payment at any time as
well as investments that are held by Supor, which 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 Supor are converted into recording currency amounts at
the spot rate prevailing on the transaction date (usually the central parity of the exchange rate quoted on the day of issuance by the
People's Bank of China, the same below).
(2) Conversion method for foreign currency monetary items and foreign currency non-monetary items
For the balance sheet date, the spot rate on the balance sheet date will be adopted in the conversion of the foreign currency
monetary items. In terms of the resulting exchange differences: ① the exchange difference of special foreign currency borrowings
related to acquiring and constructing assets which meet capitalization conditions is disposed on the principle of the capitalization of
borrowing expense; and ② foreign currency monetary items measured at the fair value with their changes included into other
comprehensive incomes, except that the exchange difference created by other book balance changes other than by amortized costs
(including decrease in value) is included into other comprehensive incomes, are included into the current profits and losses.
As to foreign currency non-monetary items measured at 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 incomes; other differences are included into current profits and losses.
(3) Conversion method for foreign currency financial statement
The foreign currency financial statement of overseas business is converted to RMB statement with the following method: the
assets and liabilities in the balance sheet shall be converted based on the spot rate on the balance sheet date; as for share holders' equities,
except the "undistributed profits", other items shall be converted at the spot rate on the date of occurrence. Items under re venues and
costs in the profit statement shall be converted at the spot rate on the transaction date. The undistributed profit at the beginning of the
year is the year-end undistributed profit after the conversion in the last year; the year-end undistributed profit is calculated and presented
according to the profit distribution of each item after conversion; the balance of the total amount among the assets and liabilities as
well as shareholders' equities after conversion serves as "conversion difference in foreign currency statement" and is recognized as
73
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
other comprehensive incomes. For the disposal of overseas business and the loss of control right, the conversion difference in foreign
currency statement related to the overseas business and presented under the shareholders' equities in the balance sheet is transferred
wholly or according to the disposal ratio of the overseas business into the current disposal profits and losses.
Foreign cash flows and cash flows of subsidiaries overseas are converted based on spot rate on the occurring date of cash flows.
The influenced amount of change in exchange rate on cash is listed separately in the cash flow statement as an adjustment item.
The beginning amount and actual amount of the year shall be presented according to the amount after conversion of financial
statement of last year.
In case of loss of control right of overseas business due to disposal of Supor's entire owners' equities in overseas business, or the
disposal of partial equity investment or other reasons, the foreign currency conversion difference listed in the shareholders' equities
items in the balance sheet, related to the overseas business and attributable to owners' equities belonging to parent company shall be
totally converted into the current disposal profits and losses.
In case of decrease of the ratio of overseas business, but no loss of control right due to disposal of partial equity investment or
other reasons, the conversion difference related to the disposal of part of related currency in the overseas business shall be attributable
to the minority shareholders' equities, and not converted into the current profits and losses.
If there are any foreign currency monetary items that substantially constitute net investment in overseas businesses, the exc hange
difference generated due to the change in exchange rate in the consolidated financial statements shall be recognized as 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 Supor becomes one party of financial instrument contract, it's required to recognize financial assets or financial liabilities.
(1) Classification, recognition and measurement of financial assets
Based on the business mode for managing financial assets and the contractual cash flow characteristics of financial assets, Supor
divides the financial assets into: financial assets measured at amortized cost, financial assets measured at the fair value w ith 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 management of financial assets means that how Supor manages its financial assets to generate cash
flows. Through business mode, it can be determined that whether the cash flow of financial assets managed by Supor is from the
collection of contractual cash flow, sales of financial assets, or both. Supor, based on the objective fact and specific business objective
of financial asset management determined by key management personnel, makes decisions on the business mode for managing financial
assets.
Supor evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash flow
generated by the relevant financial assets on the specific date is only payment of principal and interests for outstanding principal amount.
Wherein, the principal refers to the fair value of financial assets at initial recognition; interest includes consideration of the time value
of money, the credit risk related to the outstanding principal amount for a specific period, and other basic borrowing risks, costs, and
profits. Furthermore, Supor evaluates the contract terms and conditions that are likely to cause changes in the distribution of time or
amount of the contractual cash flow of financial assets, to determine whether they satisfy the requirements of the above contractual
cash flow characteristics.
Unless Supor changes its business mode for managing financial assets, all affected related financial assets are reclassified on the
first day of the first reporting period after the change of business mode, otherwise, financial assets cannot be reclassified after initial
recognition.
Financial assets shall be measured at 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 the initial recognition amount. Accounts
74
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
receivable or notes receivable that are from sale of products or rendering of services, and do not include or take into account significant
financing parts are taken as the initial recognition amount by Supor based on the consideration amount that Supor is entitled to receive.
(a) Financial assets measured at amortized cost
The business mode of Supor to manage financial assets measured at amortized cost is aimed at receiving contractual cash flows;
the contractual cash flow characteristics of such financial assets are consistent with basic loan arrangements, that is, cash flows
generated at specific date are only payment of principal and interests for outstanding principal amount. Effective interest method is
used by Supor to carry out subsequent measurement of such financial asset according to the amortized cost, and the gains or losses
arising from amortization and impairment are included into the current profits and losses.
(b) Financial assets measured at the fair value with their changes included into other comprehensive incomes
The business mode of Supor to manage such financial assets is aimed at receiving contractual cash flows as well as sales; the
contractual cash flow characteristics of such financial assets are consistent with basic loan arrangements. Such financial as sets are
measured at the fair value with their changes included into other comprehensive incomes by Supor, 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 incomes and included into the current profits and losses.
In addition, for investments in non-transactional equity instruments, Supor can irrevocably designate them as financial assets
measured at the fair value with their changes included into other comprehensive incomes upon initial recognition. The designation is
made on a single investment basis, and the relevant investment meets the definition of equity instrument from the issuer's point of view.
Supor includes the related dividend income of such financial assets into the current profits and losses with the change in fa ir value
included into other comprehensive income. When the financial asset is derecognized, the accumulated gains or losses previously
included into other comprehensive income shall be transferred out of other comprehensive income to retained earnings and not included
into the current profits and losses.
(c) Financial assets measured at the fair value with their changes included into the current profits and losses
Supor recognizes foregoing financial assets measured at amortized cost and that are not financial assets measured at the fair value
with their changes included into other comprehensive incomes as financial assets measured at the fair value with their changes included
into the current profits and losses. In addition, during initial recognition, in order to eliminate or significantly reduce accounting
mismatches, Supor designates part of the financial assets measured at the fair value with their changes included into the current profits
and losses. As to such financial assets, subsequent measurement shall be carried out by Supor based on fair value, and the re sulting
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 financ ial liabilit ies
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 the initial recognition
amount.
(a) Financial liabilities measured at the fair value with their changes included into the current profits and losses
Financial liabilities measured at the fair value with their changes included into the current profits and losses include transactional
financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities that are designated to be measured
at fair value with changes included into the current profits and losses during initial recognition.
Transactional financial liabilities (including derivatives belonging to financial liabilities) are measured subsequently at fair value
and except for those related to hedge accounting, changes in fair value are included into the current profits and losses.
For financial liabilities measured at the fair value with their changes included into the current profits and losses, changes in their
fair value caused by changes in Supor's own credit risk are included into other comprehensive incomes, and when such liabilit ies are
75
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
derecognized, accumulated changes in their fair value caused by changes in Supor's own credit risk that is included into other
comprehensive income are transferred to retained earnings. Other changes in fair value are included into current profits and losses. If
the treatment of impact of changes in credit risk of these financial liabilities in the above manner will cause or expand accounting
mismatches in profit or loss, Supor will include all gains or losses of such financial liabilities (including impact of changes in the
enterprise's own credit risk) into the current profits and losses.
(b) Financial guarantee liabilities
A financial guarantee contract refers to a contract that requires Supor to pay a specific amount to the contract holder who has
suffered a loss when the specific debtor fails to pay the debt in accordance with the original or modified terms of the debt instrument
at maturity.
After initial recognition, the income related to the financial guarantee contract is apportioned and included into the current profits
and losses in accordance with the accounting policies mentioned in Note V. "26. Revenue". Financial guarantee liabilities are
subsequently measured according to the higher of the loss provision amount determined according to the impairment principle of
financial instruments and the balance of its initial recognition amount after deducting the accumulated amortization amount of income
related to financial guarantee contracts.
(c) Other financial liabilities
In addition to financial liabilities and financial guarantee contracts as a result of financial asset transfers that are not in line with
derecognition condition or continuous involvement in transferred financial asset, other financial liabilities are classified as financial
liabilities measured at amortized cost and measured subsequently at amortized cost, and gains or losses arising from derecognition or
amortization of such liabilities are included into the current profits and losses
(3) Recognition basis and measurement method of the transfer of financial assets
If financial assets meet one of the following conditions, derecognition of such financial assets will be carried out: ① the contractual
right to receive cash flow from the financial assets is terminated; ② the financial assets have been transferred and almost all the risks
and rewards in the ownership of the financial assets are transferred to the transferee; ③ the financial assets have been transferred and,
although the enterprise has neither transferred nor retained almost all risks and rewards in the ownership of the financial a ssets, it has
waived its control over the financial assets.
If the enterprise 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 enterprise 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, Supor needs to determine whether
almost all risks and rewards related to ownership of such financial assets have been transferred. If almost all risks and rew ards 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 fina ncial 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 enterprise keeps its control over such assets and make accounting treatment based on principles as desc ribed in
the foregoing paragraphs.
76
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(4) Derecognition of financial liabilities
In case the current obligations of financial liabilities (or part of the financial liabilities) have been terminated, Supor will carry out
derecognition of such financial liabilities or part of them. In case Supor (borrower) signs an agreement with the debtor to replace the
original financial liabilities by means of bearing new financial liabilities, and contract terms and conditions related to the new financial
liabilities and original financial liabilities are different in essence, it's required to carry out derecognition of original financial liabilit ies
and recognize the new financial liabilities simultaneously. If Supor substantially modifies the contract terms and conditions 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 and conditions.
In case derecognition is carried out for the whole or part of financial liabilities, the difference between their book value and the
consideration paid (including non-cash assets transferred out or liabilities assumed) shall be included into the current profits and losses
by Supor.
(5) Offset of financial assets and financial liabilities
In case Supor has the legal right of offsetting the financial assets and financial liabilities recognized and such legal right is
executable now, and Supor plans to carry out settlement by net amount or realize the financial assets and pay off the financial liabilit ies
simultaneously, the net amount after mutual offset of such financial assets and financial liabilities shall be set out in the balance sheet.
Otherwise, financial assets and financial liabilities shall be set out in the balance sheet respectively and will not be offset mutually.
(6) Equity instruments
An equity instrument refers to a contract that can prove the ownership of residual interest in assets after Supor deducts all liabilities.
Supor's issuing (including refinancing), repurchase, sale or cancellation of equity instruments are treated as changes in equity, and
transaction costs related to equity transactions are deducted from equity. Supor does not determine changes in fair value of equity
instruments.
Distribution of dividends (including "interest" from instruments classified as equity instruments) from the equity instruments
during the duration of Supor is treated as profit distribution.
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, a ccounts
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 Supor in accordance with applicable
expected credit loss measure methods (general or simplified) based on the expected credit loss.
Credit loss refers to the difference between all contractual cash flows discounted as per the original effective interest rate and
receivable from the contract and all cash flows expected to be received by Supor, namely, the present value of a shortage of cash.
Wherein, the purchased or underlying financial assets with credit impairment of Supor shall be discounted as per effective interest rate
based on credit adjustment.
The general method for measuring expected credit loss is as follows, Supor evaluates whether credit risk of financial assets
(including contract assets and other applicable items, the same below) has remarkably increased after initial recognition on each balance
sheet date. In case of credit risk having remarkably increased after initial recognition, Supor will measure loss provision as per the
amount equivalent to expected credit loss in the entire duration; in case of credit risk failing to remarkably increase after initial
recognition, Supor will measure loss provision as per the amount equivalent to expected credit loss in the next 12 months. At the time
of evaluating expected credit loss, Supor considers all reasonable and well-founded information, including forward-looking information.
77
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
When the expected credit loss is measured, the longest period to be considered by Supor is the longest contract period when the
enterprise faces the credit risk (including considering the renewal option). The expected credit loss of the entire duration refers to the
expected credit loss arising from all possible events of default regarding financial instrument occurring during the entire expected
duration. Expected credit loss in the next 12 months refers to expected credit loss resulting from default of financial instruments likely
occurring within 12 months after the balance sheet date (expected duration if the expected duration of financial instruments is less than
12 months) which is part of expected credit loss during the entire duration.
For the financial instrument with a lower credit risk on the balance sheet date, Supor assumes that its credit risks have not increased
significantly since the initial recognition, and measures the loss provisions according to the expected credit losses of the future 12
months.
(2) Standard for judging whether credit risk has remarkably increased after initial recognition
In case that probability of default of one financial asset recognized on the balance sheet date in the expected duration is obviously
higher than that recognized at the moment of initial recognition in the expected duration, it means credit risk of such financial asset
remarkably increases. The changes of default risk within the next 12 months are adopted by Supor other than special cases as reasonable
estimate in the entire duration, ensuring whether the credit risk has increased significantly since the initial recognition.
(3) Combinatorial method of appraising future credit risk based on portfolio
Supor appraises the credit risk of the financial asset item of significantly different credit risks, such as: receivables from the related
parties; receivables disputed with the opposite side or involving litigation or arbitration; receivable amounts with obvious signs showing
that the debtor possibly is not able to perform the repayment obligations, etc.
Except financial assets of individual credit risk assessment, Supor divides financial assets into different groups based on the
common risk characteristics and appraises credit risks based on portfolio.
(4) Accounting treatment method of financial assets impairment
The expected credit losses of all kinds of financial assets are calculated by Supor at the end of the duration. If the estima ted credit
loss is greater than the book value of the current impairment provision, the difference is recognized as impairment loss; if not, it is
recognized as impairment profits.
(5) Determination method of credit losses of all kinds of financial assets
(a) Accounts receivable and contract assets
For accounts receivable and contract asset not involving significant financing part, Supor always calculates the loss provision as
the amount of expected credit loss within the entire duration.
For accounts receivable and contract asset involving significant financing part, Supor always calculates the loss provision as the
amount of expected credit loss within the duration.
The other accounts receivables other than individual credit risk assessment are divided into different portfolios based on their
credit risk characteristics:
Item Basis for determination of portfolio
Accounts receivable:
Portfolio 1: Age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
Portfolio 2: Low-risk portfolio The portfolio includes very low-risk amounts such as the payment of export third-party goods.
Portfolio 3: Merged related parties This portfolio includes current amount between related parties within the merger scope of
portfolio amounts receivable.
(b) Other receivables
The impairment loss is measured by Supor in accordance with the amount of expected credit loss equivalent to that within the
next 12 months or the entire duration based on whether the credit risk of other receivables has increased significantly since the initial
recognition. The other receivables other than individual credit risk assessment are divided into different portfolios based on their
credit risk characteristics:
78
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Item Basis for determination of portfolio
Portfolio 1: Age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
The portfolio consists of dividends receivable, receivables from government departments and
Portfolio 2: Low-risk portfolio
others with very low risk.
Portfolio 3: Merged related parties This portfolio includes current amount between related parties within the merger scope of
portfolio amounts receivable.
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 V. "9. Financial instruments" and 10 "Financial assets impairments" for relevant accounting policies.
12. Inventories
(1) Classification
Inventory mainly includes raw materials, unfinished products, finished products, low value consumables and packing materials.
(2) Valuation method for the acquisition and distribution of inventory
When inventories are acquired, they are priced at actual costs. Inventory costs include procurement costs, processing costs, and
other costs. When inventories are used and distributed, the price is calculated by the one-off weighted average method at the end of a
month.
(3) Method of recognizing net realizable value and accruing depreciation reserve of inventories
Net realizable value refers to the amount of the estimated selling price of inventories deducted by estimated costs to be inc urred
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 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 depre ciation
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 during the period of use;
packing materials shall be amortized by one-off amortization method during the requisition.
13. Contract assets
Supor lists the customer's unpaid contract consideration as contract assets in the balance sheet, under which Supor has fulfilled its
performance obligations in accordance with the contract, and it does not have the right to collect payments from customers
unconditionally (that is, only depending on the passage of time). Contract assets and liabilities under the same contract are listed in net
amount, and those under different contracts shall not be offset.
79
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
For the determination and accounting treatment methods of expected credit losses of contract assets, please refer to Note V. "10.
Financial assets impairment".
14. Held-for-sale assets and disposal group
In case Supor mainly recovers the book value by selling (including non-monetary assets exchange of commercial essence, the
same below) rather than using a non-current asset or disposal group continuously, it will be classified as held-for-sale category. The
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 a similar transaction;
Supor has made a resolution about sale plan and got certain of purchase commitment; it's predicted that the sale will be completed
within one year. Disposal group refers to a group of assets that will be disposed together as a whole by selling or other mea ns 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 held for sale during initial measurement or on the balance sheet date based on
remeasurement of Supor, if the book value is higher than the net amount by deducting the selling expenses with the fair value, the book
value shall be written down and be equal to the net amount by deducting the selling expenses with the fair value. The write -down
amount shall be recognized 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 recognized, then deduct in proportion the book value of each
non-current asset in the disposal group conforming to the measurement provisions in 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 recognized amount of asset impairment loss amount of the non-current asset as per the measurement provisions in the Standard
for Held-for-sale Non-current Assets after the assets are classified as held-for-sale category. The reverse amount shall be included into
the current profits and losses, and the book value shall be added in proportion of the book value of each non-current asset in the disposal
group applicable to the measurement provisions on the Standard for Held-for-sale Non-current Assets, except for the goodwill; Book
value of the goodwill that has been offset and asset impairment loss recognized before the non-current assets applying to the
measurement provisions in 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, Supor 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 Supor has control right,
common control right or significant impact on the invested units. Long-term equity investments that Supor does not have control,
common control or significant impact on the invested unit are accounted for as financial assets measured at the fair value with their
changes included into the current profits and losses. If such assets are not non-transactional, Supor may specify these capitals as
80
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
measured at the fair value with their changes included into other comprehensive incomes at the time of initial recognition. Re levant
accounting policies can be seen in Note V. "9. Financial instruments".
Common control refers to common control on a certain arrangement according to related provisions by Supor and related activities
of the arrangement can be decided only after the consent of the participant sharing the control right. Significant impact refers to Supor's
power on participating in the decision-making of financial and operating policies of the invested unit, but it can't control the formulation
of these policies or control the formulation commonly with other party.
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 me rged 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 a "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 a "package
deal", the share of the book value of the merged party's shareholders' equities/owners' equities in the final controlling party's
consolidated financial statement on the merger date will be taken as the initial investment cost of long-term equity investment, and the
capital reserves will be adjusted according to the difference between the initial investment cost of long-term equity investment and the
sum of book value of long-term equity investment before combination and book value of consideration newly paid for acquiring the
share; in case the capital reserve is insufficient for the offset, it's required to adjust the retained earnings. Other comprehensive income
of equity investment held before the merger date, which is accounted by equity method or recognized as financial assets measured at
the fair value with their changes included into other comprehensive incomes, is temporarily not subject to the accounting treatment.
The long-term equity investment obtained from the enterprise merger not under the same control shall be used as the initial
investment cost of long-term equity investment according to the merger cost on the purchase date. The merger cost includes the sum
of assets paid by the purchasing party, liabilities incurred or assumed, and fair value of issued equity securities. The equity of the
purchased party held obtained step by step through several transactions, which finally forms enterprise merger not under the sa me
control, shall be handled separately according to whether it belongs to "package deal": if it belongs to a "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 a "package deal", it shall
take the sum of the book value of the original equity investment held by the original purchased party and the newly investment cost as
the initial investment cost of the long-term equity investments under the cost method. If the equity originally held is accounted for by
equity method, the relevant other comprehensive incomes will not be accounted for the time being.
The initial measurement of other equity investments except for the long-term equity investment formed by the enterprise merger
shall be carried out according to the costs; in consideration of the different acquisition modes of long-term equity investment, such
costs shall be determined respectively by the cash purchase price actually paid by Supor, the fair value of equity securities issued by
Supor, value agreed in the investment contract or agreement, the fair value or original book value of assets surrendered in the non-
monetary assets exchange transaction, the fair value of the long-term equity investment, etc. The expenses, taxes and other necessary
expenditures directly related to the acquisition of the long-term equity investment shall also be included into the investment cost. If the
significant impact or common control is implemented on the invested unit due to the additional investment, but it does not constitute
the control, the long-term equity investment cost is the sum of fair value of the originally held equity investment determined according
81
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
to Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial Instruments and new
investment cost.
(2) Methods for the subsequent measurement and the profit and loss recognition
Long-term equity investments that have common control (except for joint operators) or significant impact on the invested unit are
accounted by equity method. Besides, the Company's financial statement adopts the cost method to account the long-term equity
investment that can be controlled by the invested unit.
(a) Long-term equity investments under the cost method
When the cost method is adopted for accounting, long-term equity investment is priced at the initial investment cost, and the cost
of long-term equity investment shall be adjusted when the investment is added or recovered. The current investment incomes shall be
recognized by the cash dividends or profits announced and issued by the invested unit, except for the actual price paid when the
investment is obtained or the cash dividends or profits which have been declared but not issued in the consideration.
(b) Long-term equity investments under the equity method
As to long-term equity investments under the equity method, in case the initial investment cost is more than the shares of fair
value of identifiable net assets of the invested unit that shall be enjoyed during the investment, initial investment cost of the long-term
equity investments shall not be adjusted; in case the initial investment cost is less than the shares of fair value of identifiable net assets
of the invested unit that shall be enjoyed during the investment, the difference shall be included into the current profits and losses and
the cost of long-term equity investments shall be adjusted simultaneously.
When the equity method is adopted for accounting, it's required to recognize the investment income and other comprehensive
income respectively according to net profit or loss realized by the invested unit that shall be enjoyed or shared and other comprehensive
income, and book value of the long-term equity investment shall be adjusted simultaneously. As to the part that shall be enjoyed and
calculated according to the profits or cash dividends announced and distributed by the invested unit, it's required to reduce the book
value of long-term equity investment correspondingly. As to other changes in owners' equities of the invested unit except for net profits
and losses, other comprehensive incomes and profit distribution, the book value of the long-term equity investment shall be adjusted
and included into the capital reserve. When the shares of net profit or loss of the invested unit that shall be enjoyed are recognized, it
shall be based on fair value of each identifiable net asset of the invested unit when the investment is acquired and after the adjustment
is made on net profit of the invested unit. In case the accounting policy and accounting period employed by the invested unit are
different from those employed by Supor, financial statements of the invested unit shall be adjusted according to Supor's accounting
policy and accounting period. Besides, investment income, other comprehensive income, etc. shall be recognized on this basis. For
transactions between Supor and associated enterprise or joint venture, if the assets launched or sold do not constitute the business, the
unrealized internal trading profits and losses shall be offset according to the proportion attributable to Supor, and the investment profits
and losses shall be recognized on this basis. In case the part incurred between Supor and the invested unit without internal transaction
loss belongs to the asset impairment loss, it shall not be offset. If the assets invested by Supor to the joint venture or associated enterprise
constitute the business, and the investor thereupon obtains the long-term equity investment but fails to obtain the control right, the fair
value of business launched is taken as the initial investment cost of newly long-term equity investment, and the difference between the
initial investment cost and book value of business launched shall be included into the current profits and losses in full. If the assets sold
by Supor to the joint venture or associated enterprise constitute the business, the difference between the consideration acquired and the
book value of business shall be fully included into the current profits and losses. If Supor's assets purchased from the joint venture or
associated enterprise constitute the business, accounting treatment shall be conducted in accordance with the provisions of the
Accounting Standards for Business Enterprises No. 20 -- Enterprise Merger, and the gains or losses related to the transaction shall be
fully recognized.
When the net loss of the invested unit that shall be shared is recognized, the book value of the long-term equity investment and
other long-term equity that actually constitute the net investment of the invested unit shall be written down to zero. Besides, if Supor
has the obligation to bear the additional loss for the invested unit, the estimated liabilities will be recognized according to the estimated
obligation that shall be assumed and included into the current investment losses. In case the net profit is realized by the invested unit
82
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
later, after Supor makes up the unrecognized loss amount shared by the income amount shared, it's required to recover the revenue
recognition amount shared.
(c) Acquisition of minority shareholders' equities
When compiling the consolidated financial statements, the Company shall adjust the capital reserve due to the difference between
the newly-increased long-term equity investment from the purchase of the minority shareholders' equities and the net asset shares
enjoyed according to the new shareholding proportion of the subsidiary continuously calculated from the purchase date (or the merger
date); in case that the capital reserves are not sufficient to offset, the retained earnings shall be adjusted.
(d) Disposal of the long-term equity investment
The parent company partially disposes the long-term equity investment of subsidiaries when the control right is not lost in
consolidated financial statement. The difference between disposal price and subsidiaries' net assets enjoyed corresponding to the
disposal of long-term equity investment will be included into the shareholders' equities; supposing that the parent company loses the
control right for subsidiaries due to the partial disposal of the long-term equity investment for subsidiaries, it shall be dealt with in
accordance with the relevant accounting policies as specified in the Note V. "6. Preparation method for consolidated financia l
statements (2)".
As for the disposal of the long-term equity investment under other circumstances, the difference between the book value of the
disposed equity and the actually-obtained price shall be included into the current profits and losses.
For long-term equity investments under the equity method, if the residual equities after disposal shall still be accounted by the
equity method, upon the disposal, the part of other comprehensive income that was originally included into shareholders' equities shall
be accounted for on the same basis as the invested unit's direct disposal of relevant assets or liabilities in a corresponding proportion.
However, the owners' equities that are recognized based on the changes in other owners' equities shall be carried forward to the current
profits and losses in proportion, except for the net profits and losses, other comprehensive incomes and profit distribution of the investee.
For the long-term equity investments under the cost method, if the residual equities after disposal are still under the cost method,
the accounting treatment of other comprehensive incomes recognized under the equity method or standards of recognition and
measurement of financial instruments before obtaining control of the invested unit shall be conducted on the same basis of the invested
unit's direct disposal of the relevant assets or liabilities, and it shall be carried forwarded to the current profits and losses in proportion;
except for the net profits and losses, other comprehensive incomes and profit distribution, the changes in other owners' equities in the
invested unit's net assets which are accounted and recognized by the equity method shall be carried forward to the current profits and
losses in proportion.
If Supor loses control of the invested unit due to disposal of partial equity investment, and the residual equities after disposal may
exert common control or significant impact on the invested unit while preparing individual financial statements, the equity method will
be adopted for accounting, and it will be measured by the equity method and adjusted with equity method since obtaining; if the residual
equities after disposal cannot implement the common control or exert significant impact on the invested unit, the relevant provisions
in respect of the standards of recognition and measurement of financial instruments shall be referenced for the accounting treatment,
and the difference between the fair value and book value shall be included into the current profits and losses on the date of losing
control. Before Supor acquires the control of the invested unit, for other comprehensive incomes recognized under the equity method
or standards of recognition and measurement of financial instruments, when the control of the invested unit is lost, the accounting
treatment shall be conducted on the same basis of the invested unit's direct disposal of relevant assets or liabilities; the changes in the
other owners' equities of the invested unit's net assets other than the net profits and losses, other comprehensive incomes a nd profit
distribution calculated and recognized by the equity method shall be settled and transferred to the current profits and losses in proportion.
Among them, if the residual equities after disposal are calculated by the equity method, other comprehensive incomes and othe r owners'
equities shall be carried forward in proportion; if the residual equities after disposal are to be conducted with accounting treatment in
accordance with the standards of recognition and measurement of financial instruments, other comprehensive incomes and other
owners' equities shall be carried forward.
83
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
If Supor loses the common control or significant impact on the invested unit due to disposal of partial equity investment, the
residual equities after disposal shall be accounted according to the standards of recognition and measurement of financial instruments.
The difference between the fair value and book value shall be included into the current profits and losses on the date of losing common
control or significant impact. As for other comprehensive incomes as recognized when the original equity investment is under the
equity method, it shall be subject to the accounting treatment on the same basis of the assets or liabilities which are direc tly disposed
by the invested unit when the equity method is abandoned. The owners' equities which are recognized by the investee due to the changes
in other owners' equities, except for the net profits and losses, other comprehensive incomes and profit distribution, will be reckoned
in the current investment incomes when the equity method is abandoned.
Supor will take the multiple transactions to dispose the subsidiaries' equity investment step by step until losing its control right.
When the above-mentioned transactions belong to the package deal, the transactions will be subject to the accounting treatment as an
equity investment of subsidiaries and transaction which has lost the control right. The difference between the disposal price and the
corresponding book value of long-term equity investment will be recognized as the other comprehensive incomes before losing the
control right, which will be reckoned in the current profits and losses when the control right is lost.
16. Fixed assets
(1) Recognition condition
Fixed assets refer to tangible assets held for producing commodities, rendering of services, leasing or operation management with
service life of more than 1 fiscal year. The fixed assets can be recognized only when the relevant economic interests are possible to
flow into Supor and its costs can be measured reliably. The initial measurement of fixed assets shall be carried out according to the
cost and considering the expected influence of the discard expenses.
(2) Depreciation method
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 (year) 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 Supor may obtain from the current disposal of fixed assets after
deducting the expected disposal expenses at the expiration of its expected service life.
(3) Impairment test method and counting and withdrawing method of the impairment provision of fixed
assets
See more details about the impairment test method and the withdrawing method of impairment provision of fixed asset in Note
V. "21. Impairment of long-term assets".
84
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(4) Other explanations
The subsequent expenditures related to fixed assets shall be included into fixed assets cost, and the derecognition of the book
value of the substitution part shall be carried out if economic benefits related to such fixed assets may flow in and its cost can be
reliably measured. Other subsequent expenditures, except for these, shall be included into the current profits and losses onc e occurred.
As for each component constituting fixed assets, in case that they have different service life or provide economic interest for Supor
by different ways and apply to different rates of depreciation and depreciation methods, Supor recognizes each component as a single
fixed asset, respectively.
When the fixed assets are under disposal state or it is estimated that no economic benefits can be produced through usage or
disposal, such fixed asset is derecognized. The difference of the amount left as the book value and relevant taxes are deducted from the
disposal income obtained from the sale, transfer, discard or damage of the fixed asset shall be included into the current profits and
losses.
Supor shall review the service life, expected net residual value and depreciation method of the fixed assets at least by the end of
the year. In case of any change, it shall be deemed as changes in accounting estimate.
17. Construction in progress
The cost of construction in progress shall be recognized as per actual engineering expenditures, including various project
expenditures under construction, capitalized borrowing expenses for making the project reach the expected serviceable condition, and
other relevant costs. The construction in progress shall be transferred to the fixed assets when it reaches the expected serviceable
condition.
See more details about the impairment test method and the withdrawing method of impairment provision of construction in
progress in Note V. "21. Impairment of long-term assets".
Supor shall sell the products or by-products produced before the fixed assets reach the intended usable state, and according to the
provisions of Accounting Standards for Business Enterprises No. 14 -- Revenue, Accounting Standards for Business Enterprises No. 1
-- Inventory, etc., the relevant income and cost will be accounted for and included into the current profits and losses.
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 expenses in the occurrence period.
The amount can be capitalized after the actual interest expense generated from the specific borrowing deducting the interest
revenue from the unused loan funds deposited in the bank or investment income obtained from the temporary investment in the current
period; for the general borrowing, the capitalized amount will be determined after the weighted average of excessive part of
accumulative asset expenditures compared to the asset expenditure of special borrowing multiplied by the capitalization rate of the
general borrowing occupied. The capitalization rate is determined based on the weighted average interest rate of general borrowing.
In the capitalization period, all exchange differences of special foreign currency borrowings shall be capitalized; exchange
difference of general foreign currency borrowing shall be included into the current profits and losses.
Assets meeting capitalization conditions refer to the fixed assets, investment properties, inventories, etc. which can reach the
expected serviceable state or marketable state after quite a long time of acquisition and construction or production.
85
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
If assets meeting capitalization conditions are interrupted abnormally in the process of acquisition and construction or production,
and the interruption lasts for more than 3 months, the capitalization of borrowing expense shall be suspended till the asset acquisition
and construction or production restarts.
19. Intangible assets
(1) Intangible assets
Intangible assets refer to the identifiable non-monetary assets that are owned or controlled by Supor and have no physical form.
The initial measurement of intangible assets shall be conducted according to costs. Expenditures related to intangible assets shall
be included into the cost of intangible assets if the relevant economic benefits may flow in Supor and costs can be reliably measured.
Other expenditures, except for this, shall be included into the current profits and losses once occurred.
Land use right acquired is usually calculated as intangible assets. As for buildings such as self-developed and constructed
workshops, the related land use right expenditure and construction cost of the buildings shall be calculated as intangible assets and
fixed assets respectively. As for purchased buildings and structures, the related prices are distributed between land use right and the
buildings. If it is difficult to distribute them reasonably, all of them shall be disposed as fixed assets.
As for intangible assets with a limited service life, the accumulative amount after deducting the expected net residual value and
the accrued impairment provisions with original value since the serviceable date, it is amortized with the straight-line method within
the expected service life. Intangible assets with undetermined service life will not be amortized.
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
Pollution discharge right 5 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 Supor are divided into research expenditure and development expenditure.
Research expenditure is included into the current profits and losses at the time of occurrence.
Development expenditure that can meet the following conditions will be recognized as intangible assets, while those cannot me et
will be included into the current profits and losses:
-Complete the intangible asset so as to make the use or sale of it technically feasible;
-Have the intention to complete the intangible asset and use or sell it;
-The way that an intangible asset generates economic benefits is to certify that the products produced with the intangible asset have
market or the intangible asset itself has market, or to certify its usability when it will be used internally;
-There are enough technology, financial resources and other resources to support finishing the development of an intangible asset,
and it is capable of using or selling this intangible asset;
86
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
-Expenditure attributable to the development stage of this intangible asset can be measured reliably.
If it is unable to distinguish the research expenditure from development expenditure, both R&D expenditures will be included into
the current profits and losses.
(3) Impairment test method and counting and withdrawing method of the impairment provision of
intangible assets
See more details about the impairment test method and the withdrawing method of impairment provision of intangible assets in Note
V. "21. Impairment of long-term assets".
20. Long-term unamortized expenses
Long-term unamortized expenses are expenses that have occurred but shall be borne during the reporting period and subsequent
periods with a sharing period of more than one year. Long-term unamortized expenses of Supor mainly include improvement
expenditure of fixed assets leased for operation. Long-term unamortized expenses are amortized with the straight-line method 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, Supor shall determine whether there is any sign of
impairment on the balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and impairment test
shall be carried out. Goodwill, intangible assets with undetermined service life and intangible assets that have not reached the
serviceable state, whether there is any sign of impairment, shall be subject to impairment test every year.
If the impairment test result shows that the recoverable amount of assets is lower than the book value thereof, impairment provision
shall be accrued according to the difference and included into impairment losses. The recoverable amount shall be determined as the
net amount obtained by the fair value of the asset less the disposal expense, or as the present value of the estimated future cash flow of
assets, whichever is higher. The fair value of the asset is determined according to the price in the sales agreement in the fair transaction;
if there is no sales agreement but there is an active market of assets, the fair value is determined according to buyer's price of the asset;
if there is no sales agreement and an active market of assets does not exist, the fair value of assets shall be estimated bas ed 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 as sets 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
by the asset group to which the asset belongs. Asset group refers to the minimum asset portfolio that can generate cash inflow
independently.
For the goodwill separately presented in the financial statements, during the impairment test, the book value of goodwill shall be
apportioned to the asset group or asset group portfolio expected to be benefited from the synergistic effect of enterprise merger. If the
test results show that the recoverable amount of the asset group or asset group portfolio containing the apportioned goodwill is lower
than its book value, the corresponding impairment loss shall be recognized. The amount of impairment loss firstly offsets the book
value of goodwill apportioned to the asset group or asset group portfolio, and then offsets the book value of other assets in proportion
according to the proportion of the book value other than goodwill in the asset group or asset group portfolio.
87
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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 Supor to transfer commodities to customers for the received or receivable
consideration from customers. In the event that customers have paid the contractual consideration or Supor has obtained the
unconditional collection right before it transfers the commodities to customers, Supor shall present the received or receivable account
as contract liabilities with regard to the actual payment by customers and the due payment, whichever happens earlier. Contra ct assets
and liabilities under the same contract are listed in net amount, and those under different contracts shall not be offset.
23. Employee remuneration
(1) Employee remuneration
Supor's employee remuneration mainly includes short-term employee remuneration, post-employment benefits, termination
benefits and other long-term employee benefits. Among them:
Short-term employee remuneration mainly includes salary, bonus, allowance and subsidy, employee benefits expense, medical
premium, maternity premium, occupational injuries premium, housing accumulation fund, labor union expenditure, personnel
education fund, non-monetary benefit, etc. During the accounting period in which Supor's employees provide services for Supor, actual
short-term employee remuneration incurred shall be recognized as the liabilities and included into the current profits and losses or
relevant asset costs. And the non-monetary benefits shall be measured at fair value.
Post-employment benefits mainly include basic endowment insurance, unemployment insurance, and annuity. Plans of post-
employment benefit include defined contribution plans. In case that defined contribution plans are adopted, corresponding amount
which shall be deposited will be included into the relevant asset costs or current profits and losses at the time of occurrence.
Labor relation with employees shall be cancelled before the employee's labor contract expires, or suggestion on giving
compensation shall be proposed for the purpose of encouraging employees to voluntarily accept downsizing. When Supor cannot
unilaterally withdraw termination benefits provided for cancellation of labor relation plan or downsizing suggestion and on the date
when Supor recognizes the cost related to restructuring involving payment of termination benefits, whichever is the earlier, the
employee remuneration liabilities caused by termination benefits shall be recognized and included into the current profits and losse s.
However, if it is expected that the termination benefits cannot be fully paid within twelve months after the annual reporting period is
over, it shall be handled according to other long-term employee remuneration.
The same principle for termination benefits described above shall be adopted for the plan of employee internal retirement. Staff
salary and social insurance premium to be paid by Supor for early retired employees from the date of stopping providing services to
the date of normal retirement are included into the current profits and losses (termination benefits) if the recognition conditions of
estimated liabilities are met.
24. Estimated liabilities
If the obligation related to contingencies satisfies the following conditions at the same time, it shall be recognized as the estimated
liabilities: ① This obligation is the current obligation undertaken by Supor; ② Performance of this obligation may make economic
benefits flow out of the enterprise; ③ Amount of this obligation can be reliably measured.
On the balance sheet date, considering the risks, uncertainty, time value of money and other factors related to contingencies ,
estimated liabilities are measured subject to the optimal estimate value of expenditures needed for the fulfillment of the re lated existing
responsibilities.
88
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
There is a contiguous range for expenditures needed, 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 tre ated 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 expenditures needed for paying off estimated liabilities are compensated by the third party, the compensation
amount shall be recognized separately as an asset when recognizing it may be recovered. Recognized 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 executory contract becomes a loss contract, for which the obligation can conform to the
recognition conditions of aforesaid estimated liabilities, the part the estimated losses of the contract surpass the recognized impairment
loss (if any) of the underlying asset in the contract will be recognized as estimated liabilities.
(2) Restructuring obligations
It shall determine the estimated liabilities amount according to the direct expenditures related to the restructuring which has
detailed, formal and publicly stated restructuring plan and which is in line with the recognition conditions of the aforesaid estimated
liabilities. The restructuring obligation related to partially-sold business will be recognized to be the associated obligation only when
Supor promises to sell partial businesses (namely, signs the binding-force sales agreement).
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, Supor makes the optimal estimate based on the latest information such a s
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 instruments on the acquisition date, and is included into the relevant cost or expense, and
increases the shareholders' equities accordingly.
(b) Cash-settled share-based payment
The cash-settled share-based payment is measured at the fair value of the liabilities determined by Supor based on shares or other
equity instruments. If the vesting right is granted immediately after the grant, such payment will be included into the relevant cost or
89
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
expense on the grant date, and the liabilities increase accordingly; if the service within the waiting period must be completed or the
required performance conditions must be met, according to the fair value of the liabilities assumed by Supor, and 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 increase accordingly.
The fair value of the liability is re-measured at the balance sheet date and the settlement day before the settlement of the relevant
liabilities, and the change shall be included into the current profits and losses.
(2) Accounting treatment related to the modification and termination of share-based payment plan
When Supor modifies the share-based payment plan, if the modification increases the fair value of the equity instruments granted,
the increase in the services obtained will be recognized accordingly. The increase of the fair value of equity instruments re fers 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 employees, the accounting
treatment of services obtained will be continued, as if the change has never occurred, unless Supor cancels some or all of the equity
instruments granted.
During the waiting period, if the equity instrument granted is cancelled, Supor will treat it 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 employees or other parties can choose to meet the non-vesting conditions but fail to
meet in the waiting period, Supor will treat it as a cancellation of the equity instrument.
(3) Accounting treatment of the share-based payment transactions involving Supor and the shareholders or actual controllers of the
Company
For share-based payment transaction involving Supor or the Company's shareholders or actual controllers, if either settlement
enterprise or enterprise accepting service is inside Supor or outside Supor, the accounting treatment shall be conducted in the
consolidated financial statements of Supor according to the following regulations:
-Where the settlement enterprise makes calculation by its own equity instruments, the share-based payment transaction shall be
treated as the equity-settled share-based payment; in addition, it shall be handled as a cash-settled share-based payment.
-If the settlement enterprise is an investor of an enterprise accepting service, it shall be recognized as the long-term equity
investment to the enterprise accepting service according to the fair value of the equity instrument at the grant date or the fair value of
the liability to be assumed, and the capital reserves (other capital reserves) or liabilities shall be recognized.
-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.
For the share-based payment transactions between the enterprises within Supor, if the enterprise accepting service and the
settlement enterprise are not the same enterprise, the recognition and measurement of the share-based payment transaction in individua l
financial statements of the enterprise accepting service and the settlement enterprise shall be in accordance with the above principles.
26. Revenue
Accounting policies adopted for revenue recognition and measurement
Revenue is the total inflow of economic benefits that Supor has formed in its daily activities that will result in an increase in
shareholders' equities and has nothing to do with the capital invested by shareholders. Where a contract between Supor and its customers
can meet the following conditions at the same time, the revenue shall be recognized when customers own the relevant control right of
commodities (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 transferred commodities or
rendering of services; the contract has clear payment terms and conditions related to transferred commodities; the contrac t is of the
commercial essence, which means that performance of the contract will change the risk, time distribution or amount of future cash
90
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
flow of Supor; the consideration that Supor is entitled to obtain due to the transfer of commodities to customers is likely to be recovered.
To obtain the control right of relevant commodities means to be able to lead the use of the commodities and obtain almost all economic
benefits therefrom.
On the contract commencement date, Supor identifies the individual performance obligation specified in the contract and
amortizes the transaction price to each individual performance obligation based on the relative proportion of the individual sales price
of the commodity guaranteed in individual performance obligation. Variable consideration, significant financing part in the contract,
non-cash consideration, customer consideration payable, etc. have been taken into account the transaction price.
For contracts with quality assurance terms and conditions, Supor analyzes the nature of the quality assurance provided by them.
If the quality assurance provides a separate service in addition to assuring customers that the commodities sold meet the established
standards, Supor regards it as a single performance obligation.
Transaction price is the consideration amount Supor is expected to be entitled to receive for the transfer of commodities or services
to customers, excluding payments received on behalf of third parties. The transaction price recognized by Supor does not exce ed the
amount for which it is highly probable that the accumulated recognized revenue will not be reversed significantly when the re levant
uncertainty is eliminated.
As for each individual performance obligation in the contract, if one of the following conditions is met, Supor shall recognize the
transaction price which is amortized into the individual performance obligation based on the performance progress within a re levant
performance period as the revenue: the customer obtains and consumes the economic benefits while Supor fulfills the performance
obligation; the customer manages to control the commodities in process while Supor fulfills the performance obligation; commodities
produced during the performance period have irreplaceable purposes and Supor has the right to receive payment for the performance
part which has been completed so far during the entire contract period. The performance progress shall be confirmed based on the
nature of commodities transferred by virtue of the input method or the output method. When the performance progress cannot be
confirmed reasonably, if it is predicted that the incurred cost of Supor can be compensated, the revenue shall be recognized based on
the incurred cost amount until the performance progress can be confirmed reasonably.
If one of the above conditions cannot be met, Supor recognizes 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, Supor can consider the following signs: the enterprise has the current
collection right of the commodity, namely the customer is responsible for current payment obligation of the commodity; the enterprise
has transferred the legal ownership of the commodity to the customer, namely the customer has possessed the legal ownership of the
commodity; the enterprise has transferred the real commodity to the customer, namely the customer has possessed the real commodity;
the enterprise has transferred main risks and rewards of the commodity to the customer, namely the customer has obtained the main
risks and rewards related to the ownership of the commodity; the customer has accepted the commodity; other signs indicating that the
customer has obtained the control right of the commodity.
For sales with sales return terms and conditions, when customers obtain control rights of related commodities, Supor recognizes
revenue according to the consideration amount expected to be received due to the transfer of commodities to customers (i.e., excluding
the amount expected to be refunded due to sales return), and recognizes liabilities as per the amount expected to be refunded due to
sales return. Simultaneously, according to the expected book value of the returned commodities at the time of transfer, the balance after
deducting the expected cost of recovering the commodities (including the impairment of the value of the returned commodities) is
recognized as an asset, and the net cost of the above assets is carried forward according to the book value of the transferred commodities
at the time of transfer. On each balance sheet date, Supor re-estimates the future sales returns, and if there is any change, it will be
treated as a change in accounting estimates.
Supor's selling of commodities such as cookware and small domestic appliance is a type of performance obligation at a certain
time point, of which the revenue is recognized when the control right the commodities has been transferred to the customer. According
to the agreement in the sales contract, Supor mainly recognizes the control right of commodities as having been transferred to the
customer and recognizes relevant commodity revenue when such commodity has left Supor's warehouses or its specified warehouses,
91
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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.
Different business modes of similar businesses result in differences in revenue recognition accounting policies.
27. Contract cost
The incremental cost incurred by Supor to obtain the contract and expected to be recovered shall be recognized as an asset as the
contract acquisition cost. However, if the amortization period of the asset does not exceed one year, it shall be included into the current
profits and losses at the time of occurrence.
In the event that the cost incurred for the performance of the contract does not fall within the scope of the Accounting Standards
for Business Enterprises No. 14 -- Revenue (Revised in 2017) and meets the following conditions at the same time, it shall be recognized
as an asset as the contract performance cost: ① The cost is directly related to a current or expected contract, including direct labor,
direct materials, manufacturing expenses (or similar expenses), costs borne by the customer and other costs only incurred by the
contract; ② The cost increases Supor's resources to fulfill its performance obligations in the future; ③ The cost is expected to be
recovered.
Assets recognized for contract acquisition cost and assets recognized for contract performance cost (hereinafter referred to as
"assets related to contract cost") shall be amortized on the same basis as the revenue recognition of commodities or services related to
such assets and included into current profits and losses.
Where the book value of assets related to contract costs is higher than the difference between the following two items, Supor shall
withdraw the impairment provisions of the excess part and recognize it as the asset impairment loss:
-Residual consideration expected to be obtained arising from the transfer of commodities or services related to the assets by Supor;
-Cost estimated to be occurred for the transfer of the relevant commodities or services.
28. Government subsidies
Government subsidies refer to monetary assets and non-monetary assets obtained by Supor from the government, excluding the
capital invested by the government as the investor with enjoying corresponding owners' equities. Government subsidies are divided
into government subsidies concerning assets and government subsidies concerning benefits. The government subsidies obtained by
Supor for construction, or forming long-term assets by other ways are defined as government subsidies concerning assets; other
government subsidies shall be defined as 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 at their nominal amount. The government subsidies measured at the nominal amount shall be directly included into the
current profits and losses.
When Supor actually receives the government subsidies, it shall be recognized and measured as the amount received. However,
for the end of the period, there are conclusive evidences that it can meet the relevant conditions stipulated by the financia l 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
92
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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 enterprises; ③ The relevant subsidy documents have clearly
promised the appropriation period, and the appropriation of this fund shall be safeguarded by the relevant financial budget, so it can be
reasonably guaranteed that it can be received within the specified period; ④ Other relevant conditions that shall be satisfied (if any)
based on the specific circumstances of Supor and the subsidy.
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, government subsidies including those related to assets and incomes will be subject to the accounting treatment
in different parts; for those hard to be differentiated, they shall be taken as government subsidies concerning benefits as a whole.
Government subsidies concerning daily activities of Supor shall be included into other incomes, or used to offset the relevant
costs according to the economic business nature; government subsidies not concerning daily activities will be included into the non-
operating income and expenditure.
If the government subsidies recognized 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 and deferred income tax liabilities
The difference between the book value of some assets and liabilities and their tax bases, and the temporary difference caused by
the difference between the book value of the items that are not recognized as assets and liabilities but whose tax bases can be determined
according to the tax law, shall be used to recognize deferred income tax assets and deferred income tax liabilities with the balance sheet
liability method.
For taxable temporary differences related to the initial recognition of goodwill and the initial recognition of assets or liabilit ies
arising from transactions that are neither enterprise merger nor affect accounting profit and taxable income (or deductible loss) at the
time of occurrence, the relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences
related to the investments of subsidiaries, associated enterprises and joint ventures, if Supor can control the time of reversal of the
temporary differences, and the temporary differences are likely not to be reversed in the foreseeable future, the relevant deferred income
tax liabilities shall not be recognized. Except for the above exceptions, Supor shall recognize all other deferred income tax liabilit ies
incurred in the taxable temporary differences.
For taxable temporary differences and deductible temporary differences related to the initial recognition of assets or liabilit ies
arising from individual 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 and deferred income tax assets shall be recognized separately.
In addition, for the deductible temporary differences related to the investment of subsidiaries, associated enterprises and joint ventures,
if the temporary differences are not likely to be reversed in the foreseeable future, or it is not likely to obtain the taxable income used
to offset the deductible temporary differences in the future, the relevant deferred income tax assets shall not be recognized. Except for
93
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
the above exceptions, Supor shall recognize the deferred income tax assets arising from other deductible temporary difference s 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 measured 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 profit s
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 Supor shall be presented
based on the net amount after offsetting.
When it has the legal rights of settling the current tax assets and current income tax liabilities based on the net amount, a nd 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, the involved taxpayer intends to settle the current income tax assets and liabilit ies
based on the net amount or obtain assets and pay off the liabilities at the same time, Supor's deferred income tax assets and deferred
income tax liabilities shall be presented after offsetting.
30. Lease
(1) 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 corre sponding
consideration within a certain period.
Supor evaluates whether the contract is used for lease or includes the lease on the contract commencement date. Where either
party thereto assigns one or more use rights of the identified assets under its control in a certain period to get consideration, the contract
is a lease or includes a lease.
In order to determine whether the contract transfers the right of controlling the use of an identified asset for a certain period of
time, Supor conducts the following assessment:
-Whether the contract involves the use of the identified asset. The identified asset may be explicitly specified by the contract, or
implicitly specified when the asset is available for use by the customer, and the asset is physically distinguishable, or in the event that
any production capacity of the asset or other part of the asset is physically indistinguishable, but it substantially represents the full
capacity of the asset, and thus enables the customer to have access to almost all the economic benefits arising from the use of the asset.
If the supplier of the asset has the substantial right of replacing the asset throughout the period of use, then the asset is not attributed to
an identified asset;
94
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
-Whether the lessee has the right to acquire almost all the economic benefits arising from the use of the identified asset during the
period of use;
-Whether the lessee has the right to direct the use of the identified asset during the period of use.
If the contract contains multiple separate leases at the same time, the lessee and lessor will split the contract and have ea ch separate
lease separately subject to accounting treatment. If the contract includes lease and non-lease parts at the same time, the lessee and the
lessor will split them separately.
(1) Supor as the lessee
At the beginning date of the lease term, Supor recognizes the right-of-use asset and lease obligation of the lease. The right-of-use
asset is initially measured at cost, including the initial measurement amount of the lease obligation, the lease payment paid at or before
the beginning date of the lease term (less the amount of lease incentives already granted), the initial direct expenses incurred, and the
costs expected to be incurred to demolish and remove the leased asset, restore the site where the leased asset is located or restore the
leased asset to the state agreed upon in the provisions of the lease.
Supor employs the straight-line method to depreciate right-of-use assets. If the ownership of the leased assets can be reasonably
confirmed to be obtained upon expiry of the lease term, the depreciation of leased assets shall be withdrawn by Supor during the
remaining service life thereof; otherwise, the leased asset is depreciated during the shorter of the lease term and the remaining service
life of the leased asset. Impairment provisions for right-of-use assets shall be made in accordance with the accounting policies described
in Note V. "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 Supor shall be adopted as the discount rate.
Supor calculates the interest expense of the lease obligation for each period of the lease term at a fixed periodic interest rate, which
is included into the current profits and losses or relevant asset costs. The variable lease payment not included into the mea surement of
lease obligations will be included into the current profits and losses or relevant asset costs when it actually occurs.
In case of any of following circumstances after the beginning date of the lease term, Supor will remeasure lease obligations at the
present value of the lease payment after any change:
-Where the amount payable anticipated changes according to the guaranteed residual value;
-Where the index or ratio used for recognizing the lease payment changes;
-Where there is a change in Supor's assessment results of the option of purchase, renewal option or option of termination of lease
or the actual exercising of the termination of the renewal option or option of termination of lease is inconsistent with the original
assessment result.
When the lease obligation is remeasured, Supor will adjust the book value of right-of-use assets accordingly. If the book value of
right-of-use assets has been reduced to zero, but the lease obligation still needs to be further reduced, Supor will include the remaining
amount in the current profits and losses.
Supor has chosen not to recognize 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, and includes related lease payment into the current profits and losses or relevant asset costs in
each period during the lease term pursuant to the straight-line method.
(2) Supor as the lessor
At the beginning date of the lease term, Supor divides leases into financing and operating leases. Financing lease refers to a lease
in which almost all the risks and rewards related to the ownership of the leased asset are essentially transferred, regardless of whether
the ownership is finally transferred or not. Operating lease refers to the other leases except for the financing lease.
Supor, as the lessor, provides classification of subleases based on the right-of-use assets created by the original lease rather than
the underlying assets of the original lease. If the original lease is a short-term lease and Supor chooses to apply the simplified treatment
of the above short-term lease to the original lease, then Supor classifies the sublease as an operating lease.
95
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Under financing leases, at the beginning date of the lease term, Supor recognizes financing lease receivables for financing lease
and derecognizes the financial leasing assets. Supor regards the net investment in a lease as the entry value of financing lease receivables
at the time of initial measurement of financing lease receivables. The net investment in a lease is the sum of the present va lue of
unguaranteed residual value and lease receipt not received yet on the beginning date of the lease term which is subject to discounting
at the implicit rate in the lease term.
Supor calculates and recognizes the interest revenue in each period within the lease term according to a fixed periodic rate. The
derecognition and impairment of financing lease receivables shall be treated in accordance with the accounting policies described in
Note V. "9. 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 recognized as rent revenue in each period during the lease term in light of straight-line
method. Supor capitalizes the initial direct expenses incurred in connection with operating leases, apportioned them over the lease term
on the same basis as the rent revenue recognition, and included 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 parties
If one party controls or jointly controls the other party or imposes significant impact on the other party, and two or more parties
are controlled or jointly controlled by one party, these parties are related parties. Related parties can be an individual or an enterprise.
Enterprises that are only controlled by the state but do not have other related party relationships do not constitute related parties.
In addition, the Company also determines related parties of Supor or the Company in accordance with the Administrative Measures
for the Disclosure of Information of Listed Companies promulgated by the CSRC.
32. Segment reporting
See Note XVI. "1. Segment information" for details of accounting policies related to segment reporting.
33. Other important accounting policies and estimates
(1) Repurchased shares
If Supor reduces its capital by acquiring the stocks of the Company with approval, then it shall reduce share capital according to
the total amount of the face value of cancelled stocks, and adjust owners' equities according to the difference between the price paid to
purchase stocks back (including transaction cost) and the face value of stocks. The part exceeding the total face value shall write down
capital reserve (share capital premium), surplus reserve and undistributed profit. If the price is lower than the total face value, then the
part lower shall be added with capital reserve (share capital premium).
Shares repurchased by Supor shall be managed as treasury shares before they are cancelled or transferred; total expenditure of
repurchased shares shall be transferred as the cost of treasury shares.
When treasury shares are transferred, the part higher than their cost shall increase the capital reserve (share capital premium); the
part lower than their cost shall write down capital reserve (share capital premium), surplus reserve and undistributed profit in sequence.
If Supor repurchases shares for the reason of equity incentive, it shall treat all expenses on shares repurchase as treasury shares
while repurchasing and make registration for future reference.
(2) Hedge accounting
Some financial instruments are used as hedging tools by Supor to avoid certain risks. For those hedges meeting requirements
specified, Supor will deal with them by hedge accounting method. The hedge of Supor is fair value hedge. The hedge for foreign
exchange risk of firm commitment is used as fair value hedge by Supor.
96
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
The hedging tool and the hedged item are formally specified by Supor at the beginning of hedge with written documents about
the hedging relationship, risk management strategy and risk management objectives. In addition, the hedge effectiveness will be
assessed continuously by Supor from the beginning of hedge.
(a) Fair value hedge
The gains or losses from the hedging tool specified as fair value hedge with qualification are included into the current profits and
losses. Otherwise, the 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 incomes. 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 rec ognized
hedged items not measured at fair value shall be adjusted simultaneously. The gains or losses of the hedged items that are measured at
fair value from hedging risks are included into the current profits and losses and other comprehensive incomes without book value
adjusting.
The hedge accounting is terminated when the hedging relationship is revoked by Supor, the hedging tool is expired or sold, the
contract is terminated or exercised, or the condition is out of qualification.
(3) Fair value measurement
Fair value refers to the price that a market participant can obtain or needs to pay after selling an asset or transferring a liabilit y
among the orderly transactions made on the measurement date. Supor measures relevant asset or liability and considers the
characteristics of this asset or liability at fair value; supposes the selling of assets or transfer of liabilities by a market participant is an
orderly transaction under current market conditions; supposes the orderly selling of assets or transfer of liabilities is carried out in the
main market of relevant assets or liabilities; supposes the transaction is made in the most favorable market for relevant assets or
liabilities when there is no main market. Supor adopts the assumptions that market participants use to maximize their economic benefits
when they price assets or liabilities.
Supor judges whether the fair value at initial recognition equals to its transaction price according to transaction nature and the
characteristics of relevant assets or liabilities; if the transaction price is not equal to the fair value, relevant gains or losses will be
included into the current profits and losses, unless otherwise specified by relevant accounting standards.
Supor adopts the valuation technique that is applicable to the current situation and has enough available data and other information
to support. Mainly used valuation techniques include market approach, income approach and cost method. In the application of
valuation techniques, relevant observable input values shall be used first, and unobserved input values can only be used when relevant
observable input values cannot be obtained or it is not feasible to obtain them.
Input values used by Supor for fair value measurement are divided into 3 levels. The first level of input values will be used first,
and then the second level and the third level. First-level input values are the quotations of same assets or liabilities that can be obtained
on the measurement date and are not adjusted in the active market; second-level input values are the direct or indirect observable input
values of relevant assets or liabilities other than the first-level input values; third-level input values are the unobservable input values
of relevant assets or liabilities.
Supor measures non-financial assets with fair value, considers market participant's ability to use them in the best way to generate
economic benefits, or the ability to sell assets to other market participants who can use them in the best way to generate ec onomic
benefits. To measure a liability with fair value, it is supposed that this liability is transferred to other market participants on the
measurement date, and further exists after transfer, and the market participant, who is the transferee, performs obligations. To measure
one's own equity instrument with fair value, it is supposed that this equity instrument is transferred to other market participants on the
measurement date, and further exits after transfer, and the market participant, as the transferee, obtains relevant rights to this instrument
and undertakes corresponding obligations.
97
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
34. Change of important accounting policies and estimates
(1) Change of important accounting policies
Applicable □Not-applicable
(a) Accounting Standards for Business Enterprises No. 25- Insurance Contracts (CK[2020] No. 20) (the "New Insurance Standards")
and related implementation Q&A
The "New Insurance Standards replaced the Accounting Standards for Business Enterprises No. 25- Original Insurance Contracts
and Accounting Standards for Business Enterprises No. 26- Reinsurance Contracts issued in 2006, as well as the Accounting Treatment
Regulations for Insurance Contracts issued in 2009 (CK[2009] No. 15).
There is no insurance related transactions in Supor, and the adoption of the above regulations has not had a significant impact on
Supor's financial condition and operating results.
(b) According to the Accounting Standards for Business Enterprises Interpretation No. 16 (CK [2022] 31) ("Interpretation No. 16"),
"the accounting treatment for deferred income tax related to assets and liabilities arising from individual transactions are not applicable
to initial recognition exemption."
According to this regulation, for taxable temporary differences and deductible temporary differences related to the initial
recognition of assets or liabilities arising from individual transactions that are neither enterprise merger nor affect accounting profit
and taxable income (or deductible loss) at the time of occurrence, according to Accounting Standards for Business Enterprises No. 18-
Income Tax,the relevant deferred income tax liabilities and deferred income tax assets shall be recognized separately. Instead, deferred
income tax liabilities or deferred income tax assets will no longer be recognized based on the net amount of taxable temporary
differences and deductible temporary differences generated.
The adoption of the above regulations did not have a significant impact on Supor's financial condition and operating results.
(2) Change of important accounting estimates
□ Applicable Not-applicable
(3) Adjustment of related items in the financial statements at the beginning of the year from 2023 following the first
implementation of the New Accounting Standards
□ Applicable Not-applicable
VI. Taxes
1. Main taxes and tax rates
Tax Tax base Tax rate
Taxable income is calculated at output tax rates of 0, 6%, 9%, and
Sales of commodities or rendering of
VAT 13%, and VAT is calculated based on the difference after deducting
taxable services
the input tax allowable for the current period.
Urban maintenance
VAT payable 7%
and construction tax
The corporate income tax rate is 25%. Shaoxing Supor, Zhejiang
WMF and Hainan Supor E-Commerce Company are taxed at a
Enterprise income tax Taxable income preferential tax rate of 15%; Wuhan Recycling and Shanghai
Marketing are taxed at a preferential tax rate of 20%; for overseas
subsidiaries, Indonesia Company is taxed at a 22% rate, Vietnam
98
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Supor Company 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 GKH Zi [2020] No. 32 document, Shaoxing Supor and Zhejiang WMF passed the hi-tech enterprise qualification in
2022 and is entitled to enjoy the preferential tax rate of 15% for the three-year period starting from January 1, 2022.
According to the Enterprise Income Tax Law of the People's Republic of China and its implementation regulations, the Notice on
Preferential Policies for Enterprise Income Tax in Hainan Free Trade Port (CS [2020] No. 31) and other provisions, business income
tax will be levied at a rate of 15% for encouraged industrial enterprises registered and substantially operating in the Haina n Free Trade
Port from January 1, 2020 to December 31, 2024. Meeting the e-commerce in the encouraged industries catalogue, Hainan Supor E-
commerce Company applies the preferential tax rate of 15% in 2023.
According to the Announcement on Preferential Policies on Income Tax for Small and Micro Enterprises and Individual Industrial
and Commercial Households issued by the Ministry of Finance and the State Administration of Taxation on March 26, 2023 (CS [2023]
No. 6), from January 1, 2023 to December 31, 2024,the part of the annual taxable income of small and micro enterprises that not exceed
RMB 1 million will be included into the taxable income at a reduced rate of 25%, and the enterprise income tax will be paid a t a tax
rate of 20%. At the same time, according to the Announcement of the Ministry of Finance and the State Taxation Administration on
Further Implementing the Preferential Income Tax Policies for Micro and Small Enterprises (CS [2022] No. 13), from January 1, 2022
to December 31, 2024, the part of the annual taxable income of small and micro enterprises that exceeds RMB 1 million, but does not
exceed RMB 3 million will be included into the taxable income at a reduced rate of 25%, and the enterprise income tax will be paid at
a tax rate of 20%. Wuhan Recycling and Shanghai Marketing meet the criteria for small low-profit enterprises in 2023, so the
preferential tax rate of 20% is applicable in 2023.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Item Closing balance Opening balance
Cash on hand 61,638.32 56,591.47
Cash in bank 1,370,537,068.31 3,215,677,104.23
Other monetary capitals 489,082,381.52 347,407,212.05
Total 1,859,681,088.15 3,563,140,907.75
Including: Deposits overseas 246,445,549.98 207,979,588.92
Other remarks
99
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
1) On June 30, 2023, the bank deposits with restricted use were frozen for the cancellation of the branch bank account at RMB 0
(December 31, 2022: RMB 8,541.04), the amount frozen in the bank account for changes in industrial and commercial legal persons
is RMB 0 (December 31, 2022: RMB82,189.64), term deposits pledged for the opening of bankers' acceptances at RMB 0 (December
31, 2022: 12,546,000.00), and the remaining bank deposits of RMB 1,370,537,068.31 were not restricted, including term deposit for
more than three months of RMB 50,789,657.53.
2) As at June 30, 2023, other monetary capitals at the end of the period included RMB 405,723,750.00 (December 31, 2022: RMB
254,129,233.86) of the security for restricted acceptance bills, RMB 948,609.32 (December 31, 2022: RMB 975,570.02) of the security
deposits for e-commerce platforms, RMB 58,000,000.00 (December 31, 2022: RMB 58,000,000.00) of the security for the deposits of
the advance payment financing business, and RMB 24,410,022.20 (December 31, 2022: RMB 34,302,408.17) 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 June 30, 2023, the monetary capital deposited by Supor in Vietnam amounted to RMB 229,422,652.39 (December 31, 2022:
equivalent to RMB 193,083,117.24); the monetary capital deposited in Singapore amounted to RMB 4,129,980.76 (December 31, 2022:
amounted to RMB 3,754,734.88); the monetary capital deposited in Indonesia amounted to RMB 12,892,916.83 (December 31, 2022:
equivalent to RMB 11,141,736.80).
2. Transactional financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets measured at the fair value with their changes included into the
250,129,103.13 431,382,527.79
current profits and losses.
Including:
- Short-term financial products 250,129,103.13 431,382,527.79
Total 250,129,103.13 431,382,527.79
Other remarks
As at June 30, 2023, the financial assets measured at the fair value with their changes included into the current profits and losses were
the financial products purchased by Supor, amounting to RMB 250,000,000.00 (December 31, 2022: RMB 430,000,000.00). These
financial products with floating income, and linked to interest rates and exchange rates, etc., and the corresponding gains from changes
in fair value, i.e., RMB 129,103.13 (December 31, 2022: RMB 1,382,527.79), were recognized at the end of the current period.
3. Notes receivable
(1) Details on categories
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 20,847,819.64 27,325,952.95
Total 20,847,819.64 27,325,952.95
Unit: RMB
Closing balance Opening balance
Categories Provision for bad Provision for bad Book
Book balance Book value Book balance
debts debts value
100
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Amoun Provision Amou Provision
Amount Proportion Amount Proportion
t proportion nt proportion
Notes
receivable for
provision for
20,847,819. 20,847,819. 27,325,952
bad debts 100.00% 27,325,952.95 100.00%
64 64 .95
made on the
basis of
portfolio
Including:
Portfolio:
bank 20,847,819. 20,847,819. 27,325,952
100.00% 27,325,952.95 100.00%
acceptance 64 64 .95
bill
20,847,819. 20,847,819. 27,325,952
Total 100.00% 27,325,952.95 100.00%
64 64 .95
(2) Notes receivables that the Company pledged at the end of the period
As of June 30, 2023, Supor had no notes receivable pledged (December 31, 2022: None).
(3) Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
Unit: RMB
Closing balance
Item Closing balance not derecognized
derecognized
Bank acceptance bill 16,967,274.33
Total 16,967,274.33
Other remarks
On June 30, 2023, the outstanding notes receivable of Supor was RMB16,967,274.33 (December 31, 2022: RMB22,383,800.87)
endorsed to suppliers for settlement of accounts payable were not derecognized mainly because management believes that substa ntially
all the risks and rewards of ownership of the notes have not been transferred. The face value of the above outstanding notes rece ivable
is approximately equal to their fair value. These outstanding notes receivable are due within one year.
(4) Notes the Company transferred to accounts receivable due to the drawer's failure to perform the
contract at the end of the period
As at June 30, 2023, Supor had no notes transferred to accounts receivable due to non-performance of drawers. (December 31, 2022:
None).
4. Accounts receivable
(1) Details on categories
Unit: RMB
Closing balance Opening balance
Categories
Book balance Provision for bad Book Book balance Provision for bad debts Book
101
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
debts value value
Provisi
Provision
Proporti on Proporti
Amount Amount Amount Amount proportio
on proport on
n
ion
Accounts
receivable for
provision for
2,176,088.7 1,782,151.
bad debts 0.09% 393,937.22 18.10% 41,463.78 0.00% 41,463.78 100.00%
3 51
made on an
individual
basis
Including:
Accounts
receivable for
provision for
2,345,361,9 94,142,725. 2,251,219, 2,008,279,02 81,760,902. 1,926,518,
bad debts 99.91% 4.01% 100.00% 4.07%
69.86 31 244.55 0.67 29 118.38
made on the
basis of
portfolio
Including:
Portfolio 1: 2,302,492,9 94,099,856. 2,208,393, 1,929,487,53 81,682,110. 1,847,805,
98.08% 4.09% 96.07% 4.23%
age portfolio 98.46 34 142.12 7.03 81 426.22
Portfolio 2:
42,868,971. 42,826,102 78,791,483.6 78,712,692
low-risk 1.83% 42,868.97 0.10% 3.93% 78,791.48 0.10%
40 .43 4 .16
portfolio
2,347,538,0 94,536,662. 2,253,001, 2,008,320,48 81,802,366. 1,926,518,
Total 100.00% 4.03% 100.00% 4.07%
58.59 53 396.06 4.45 07 118.38
Provision for bad debts made on an individual basis:
Unit: RMB
Closing balance
Name Provision for bad
Book balance Provision proportion Reasons
debts
Customers A 1,665,526.67 166,552.67 10.00% It was expected that the recovery was at risk.
Customer B 314,641.68 31,464.17 10.00% It was expected that the recovery was at risk.
It was not expected to be recovered, so the provision
Customer C 75,662.72 75,662.72 100.00%
for bad debts was fully accrued.
It was not expected to be recovered, so the provision
Customer D 41,463.78 41,463.78 100.00%
for bad debts was fully accrued.
It was not expected to be recovered, so the provision
Customer E 78,793.88 78,793.88 100.00%
for bad debts was fully accrued.
Total 2,176,088.73 393,937.22
Provision for bad debts made on the basis of portfolio: portfolio 1: the age portfolio
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
102
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Within 1 year (including 1
2,296,860,007.40 93,015,062.92 4.05%
year)
1-2 years (including 2 years) 4,392,264.97 351,381.20 8.00%
2-3 years (including 3 years) 588,566.02 88,284.90 15.00%
3-4 years (including 4 years) 10,147.91 5,073.96 50.00%
4-5 years (including 5 years) 9,794.00 7,835.20 80.00%
Over 5 years 632,218.16 632,218.16 100.00%
Total 2,302,492,998.46 94,099,856.34
Explanation on the basis for determining such portfolio:
The expected credit loss rate was 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 was made based on the general model of expected credit losses, please disc lose the
relevant information about the provision for bad debts with reference to the disclosure of other receivables:
□ Applicable Not-applicable
Disclosure by ages
Unit: RMB
Ages Closing balance
Within 1 year (including 1 year) 2,341,709,147.15
1-2 years 4,392,264.97
2-3 years 623,484.74
Over 3 years 813,161.73
3-4 years 158,349.42
4-5 years 10,136.00
Over 5 years 644,676.31
Total 2,347,538,058.59
(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
Opening
Categories Collected or Closing balance
balance Accrued Written off Others
reversed
Provision for bad
debts for accounts 81,802,366.07 12,624,888.07 -63,775.08 173,183.47 94,536,662.53
receivable
Total 81,802,366.07 12,624,888.07 -63,775.08 173,183.47 94,536,662.53
103
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Increased provision for bad debts of RMB 173,183.47 for conversion difference in foreign currency statement caused by the cha nge in
exchange rate.
(3) Accounts receivable actually written off in current period
Unit: RMB
Item Amount
Accounts receivable actually written off 63,775.08
Including significant accounts receivable written off:
Unit: RMB
Whether the
Write-off
Type of accounts amount was
Entity name Amount Reason procedures
receivable from related
performed
transactions
Goods payment cannot be recovered Approval by
Customer F Goods payment 63,775.08 because of the Company's capital the No
chain rupture management
Total 63,775.08
(4) Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of accounts Proportion in the total closing balance Closing balance of
Entity name
receivable of accounts receivable provision for bad debts
SEB S.A. and its affiliates 1,451,773,497.70 61.84% 50,813,861.31
Customer G 374,079,997.03 15.93% 18,723,088.06
Customer H 58,410,537.53 2.49% 2,964,843.10
Customer I 44,785,773.38 1.91% 2,239,288.67
Customer J 27,888,983.90 1.19% 1,396,494.07
Total 1,956,938,789.54 83.36%
5. Receivables financing
Unit: RMB
Item Closing balance Opening balance
Notes receivable 238,173,347.65 235,957,044.34
Total 238,173,347.65 235,957,044.34
Other remarks
Supor endorses or discounts a portion of its bankers' acceptances depending on its daily fund management needs. Considering the
amount and frequency of endorsement or discounting of bankers' acceptances, Supor determines that the objective of this business
model is to collect the contractual cash flows and sell the notes receivable at the same time, therefore, such notes receivable are
classified as financial assets at fair value through other comprehensive income and presented as receivables financing.
On June 30, 2023, Supor had no pledged receivables financing (December 31, 2022: none).
104
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Changes in receivables financing and its fair value during the period
□ Applicable Not-applicable
If receivables financing was made based on the general model of expected credit losses, please disclose the relevant information
about the impairment provision with reference to the disclosure of other receivables:
□ Applicable Not-applicable
Other remarks:
Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
Closing balance Closing balance not
Item
derecognized derecognized
Bank acceptance bill 3,210,953,970.98
Total 3,210,953,970.98
Other remarks:
In order to settle part of the payables, Supor endorses the equal amount of undue notes receivable to the suppliers, and the management
of Supor considered that certain undue notes meet the conditions, that is, almost all risks and remuneration pertaining to ownership had
been transferred and meanwhile the current obligations of the relevant payables had been fully discharged, thus the relevant notes and
payables were derecognized. The possible greatest loss undertaken by Supor for the continued involvement therein was the amount of
the undue notes receivable endorsed by Supor to suppliers. The said undue notes receivable would 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 200,723,367.83 98.11% 335,655,809.04 98.83%
1-2 years 3,699,381.80 1.81% 3,123,427.28 0.92%
2-3 years 197.55 0.00% 665,000.00 0.20%
Over 3 years 167,229.90 0.08% 165,310.70 0.05%
Total 204,590,177.08 339,609,547.02
Explanation on reasons of failure in timely settlement of advance payment with over 1 year of account age and important amounts:
Other remarks:
Aging was calculated from the date of confirmation of advance payment.
(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 26,836,352.82 13.12%
Supplier B 19,412,625.93 9.49%
Supplier C 18,501,358.00 9.04%
105
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Supplier D 15,315,007.87 7.49%
Supplier E 10,715,306.00 5.24%
Subtotal 90,780,650.62 44.37%
7. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 17,444,244.73 16,373,697.26
Total 17,444,244.73 16,373,697.26
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 11,817,653.93 10,692,374.84
Temporary payment receivable 6,705,826.23 6,434,897.15
Personal deposit 3,061,056.78 2,382,649.26
Tax refund receivable 744,280.34 1,237,388.33
Total 22,328,817.28 20,747,309.58
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 entire duration (credit
future 12 months
credit impairment) impairment)
Balance on January 1, 2023 4,373,612.32
Balance on January 1, 2023 in
the current period
Withdrawal in the current
504,792.54
period
Other changes 6,167.69
Balance on June 30, 2023 4,884,572.55
Other remarks
Other changes were due to the increase in bad debt provision of RMB6,167.69 for translation differences in foreign currency statements
as a result of exchange rate changes.
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not-applicable
106
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Disclosure by ages
Unit: RMB
Ages Closing balance
Within 1 year (including 1 year) 15,329,820.73
1-2 years 2,287,510.49
2-3 years 1,157,119.45
Over 3 years 3,554,366.61
3-4 years 1,069,250.62
4-5 years 587,355.32
Over 5 years 1,897,760.67
Total 22,328,817.28
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
4,373,612.32 504,792.54 6,167.69 4,884,572.55
of other receivables
Total 4,373,612.32 504,792.54 6,167.69 4,884,572.55
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 K 1,626,035.36 Within 1 year 7.28% 81,301.77
receivable
Temporary paragraph
Within 1 year-4
Customer L receivable/deposit as 1,503,988.38 6.74% 238,199.42
years
security
Customer M Deposit as security 1,356,870.27 Within 1 year 6.08% 67,843.51
Temporary payment
Customer N 1,312,040.00 Within 1 year 5.88% 65,602.00
receivable
Temporary payment
Customer O 1,305,031.93 Within 1 year 5.84% 65,251.60
receivable
Total 7,103,965.94 31.82% 518,198.30
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
107
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
No
(1) Inventory classification
Unit: RMB
Closing balance Opening balance
Inventory
Inventory
depreciation
depreciation
reserves or
Item reserves or
impairment
Book balance Book value Book balance impairment Book value
provision for
provision for
contract
contract
performance
performance cost
cost
Raw materials 384,132,757.00 15,281,685.54 368,851,071.46 446,471,515.87 14,369,922.27 432,101,593.60
Unfinished
84,031,630.27 84,031,630.27 84,088,800.88 84,088,800.88
products
Finished
1,409,794,085.57 22,071,918.90 1,387,722,166.67 1,885,938,291.03 19,558,744.71 1,866,379,546.32
products
Low value
87,444,342.45 136,408.25 87,307,934.20 101,274,579.44 379,610.26 100,894,969.18
consumables
Packing
9,461,726.98 9,461,726.98 11,457,946.44 11,457,946.44
materials
Total 1,974,864,542.27 37,490,012.69 1,937,374,529.58 2,529,231,133.66 34,308,277.24 2,494,922,856.42
(2) Inventory depreciation reserves and impairment provision for contract performance cost
Unit: RMB
Increase Decrease
Item Opening balance Reversal or write- Closing balance
Accrued Others Others
off
Raw materials 14,369,922.27 5,466,497.29 260,065.17 4,814,799.19 15,281,685.54
Finished products 19,558,744.71 11,616,206.15 131,428.69 9,234,460.65 22,071,918.90
Low value
379,610.26 243,202.01 136,408.25
consumables
Total 34,308,277.24 17,082,703.44 391,493.86 14,292,461.85 37,490,012.69
Other remarks:
There was an increased inventory depreciation reserves of RMB 391,493.86 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 303,175,671.23 32,157,534.25
Total 303,175,671.23 32,157,534.25
108
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Important debt investments/other debt investments
Unit: RMB
Closing balance Opening balance
Creditor's items Effective Effective
Coupon Coupon
Face value interest Expiry date Face value interest Expiry date
rate rate
rate rate
The Company - Bank
December December
of China negotiable 30,000,000.00 3.50% 3.34% 30,000,000.00 3.50% 3.34%
11, 2023 11, 2023
certificates of deposit
The Company - Bank
March 24,
of China negotiable 40,000,000.00 3.85% 3.71%
2024
certificates of deposit
The Company - Bank
April 16,
of China negotiable 60,000,000.00 3.85% 3.73%
2024
certificates of deposit
The Company - Bank
April 2,
of China negotiable 10,000,000.00 3.85% 3.80%
2024
certificates of deposit
The Company - Bank
March 25,
of China negotiable 60,000,000.00 3.85% 3.78%
2024
certificates of deposit
The Company - Bank
April 9,
of China negotiable 20,000,000.00 3.85% 3.78%
2024
certificates of deposit
Shaoxing Supor -
Bank of China February 4,
30,000,000.00 3.85% 3.57%
negotiable 2024
certificates of deposit
Shaoxing Supor -
Bank of China February 4,
30,000,000.00 3.85% 3.57%
negotiable 2024
certificates of deposit
Total 280,000,000.00 30,000,000.00
10. Other current assets
Unit: RMB
Item Closing balance Opening balance
Return cost receivable 9,998,719.65 14,266,301.12
Creditable VAT 57,221,356.01 49,236,636.79
Term deposit 220,760,000.00 381,101,095.89
Others 14,758,329.46 6,381,982.96
Total 302,738,405.12 450,986,016.76
Other remarks:
Term deposits were for the purpose of earning interest, on June 30, 2023, of which: the principal of term deposits for more than three
months was RMB 200,000,000.00 (December 31, 2022: RMB 350,000,000.00) and the interest receivable was RMB 20,760,000.00
(December 31, 2022: RMB 31,101,095.89).
109
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
11. Other debt investments
Unit: RMB
Loss provisions
Fair Accu
that were
value mulate
cumulatively
changes d fair Rema
Item Opening balance Accrued interest Closing balance Cost determined in
in the value rks
other
current change
comprehensive
period s
incomes
Negotiable
certificates of 1,056,952,424.68 54,670,493.15 1,103,225,054.80 1,048,554,561.65
deposit
Minus: Part
due within -32,157,534.25 -24,621,109.58 -303,175,671.23 -278,554,561.65
one year
Total 1,024,794,890.43 30,049,383.57 800,049,383.57 770,000,000.00
Other important debt investment
Unit: RMB
Closing balance Opening balance
Other creditors' rights Effectiv
Effective
items Coupon Coupon e
Face value interest Expiry date Face value Expiry date
rate rate interest
rate
rate
Shaoxing Supor
Housewares - China
April 21,
Guangfa Bank 200,000,000.00 3.55% 3.43% April 21, 2025 200,000,000.00 3.55% 3.43%
2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - China
March 11, March 11,
Guangfa Bank 50,000,000.00 3.55% 3.36% 50,000,000.00 3.55% 3.36%
2025 2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - China
July 25,
Guangfa Bank 100,000,000.00 3.45% 3.34% July 25, 2025 100,000,000.00 3.45% 3.34%
2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - Bank of October 17, October 17,
20,000,000.00 3.40% 3.29% 20,000,000.00 3.40% 3.29%
Ningbo negotiable 2025 2025
certificates of deposit
Shaoxing Supor
Housewares - China
July 28,
Guangfa Bank 100,000,000.00 3.45% 3.30% July 28, 2025 100,000,000.00 3.45% 3.30%
2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - China
August 4, August 4,
Guangfa Bank 100,000,000.00 3.45% 3.22% 100,000,000.00 3.45% 3.22%
2025 2025
negotiable certificates
of deposit
110
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Shaoxing Supor - Bank
November 10, November
of Ningbo negotiable 10,000,000.00 3.55% 3.30% 10,000,000.00 3.55% 3.30%
2024 10, 2024
certificates of deposit
Shaoxing Supor - Bank
January 6,
of China negotiable 50,000,000.00 3.35% 3.20%
2025
certificates of deposit
Shaoxing Supor - Bank
of China negotiable 140,000,000.00 3.35% 3.32% March 3, 2025
certificates of deposit
The Company - Bank
March 24,
of China negotiable 40,000,000.00 3.85% 3.71%
2024
certificates of deposit
The Company - Bank
April 16,
of China negotiable 60,000,000.00 3.85% 3.73%
2024
certificates of deposit
The Company - Bank
April 2,
of China negotiable 10,000,000.00 3.85% 3.80%
2024
certificates of deposit
The Company - Bank
March 25,
of China negotiable 60,000,000.00 3.85% 3.78%
2024
certificates of deposit
The Company - Bank
April 9,
of China negotiable 20,000,000.00 3.85% 3.78%
2024
certificates of deposit
Shaoxing Supor- Bank
February 4,
of China negotiable 30,000,000.00 3.85% 3.57%
2024
certificates of deposit
Shaoxing Supor - Bank
February 4,
of China negotiable 30,000,000.00 3.85% 3.57%
2024
certificates of deposit
Shaoxing Supor
Housewares - China
August 4,
Guangfa Bank 150,000,000.00 3.35% 3.21%
2025
negotiable certificates
of deposit
Shaoxing Supor
Housewares - ICBC March 30,
15,000,000.00 3.35% 3.23%
negotiable certificates 2025
of deposit
Total 770,000,000.00 995,000,000.00
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not-applicable
12. Long-term equity investment
Unit: RMB
Increase/decrease Closi
Cash ng
Inve Adjustm balan
dividend/p Accrued
Opening balance Add stme Investment ent in Chang Closing balance ce of
Invested unit rofit impairm
Inve nt profit or loss other es in
(Book value) declared ent Others (Book value) impai
stme decr recognized by compreh other rment
for provisio
nt ease equity method ensive equity provi
distributio n
d income sion
n
111
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
I. Joint Venture
II. Associated Enterprise
Wuhan Anzai
Cookware 62,196,139.53 -432,266.96 61,763,872.57
Co., Ltd.
Subtotal 62,196,139.53 -432,266.96 61,763,872.57
Total 62,196,139.53 -432,266.96 61,763,872.57
13. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1,252,394,688.18 1,303,075,391.03
Total 1,252,394,688.18 1,303,075,391.03
(1) Fixed assets
Unit: RMB
Buildings and General Transport
Item Special equipment Total
structures equipment facilities
I. Original Book Value:
1. Opening balance 1,223,555,061.57 296,185,619.01 970,045,460.97 32,943,632.66 2,522,729,774.21
2. Increase 1,550,178.51 8,815,816.01 4,067,879.31 3,438,389.51 17,872,263.34
(1) Acquisition 372,898.97 8,787,365.93 3,299,085.68 3,438,389.51 15,897,740.09
(2) Transferred in from
1,177,279.54 28,450.08 768,793.63 1,974,523.25
construction in progress
(3) Increase from
enterprise merger
3. Decrease 3,614,180.06 3,635,004.22 11,075,804.71 2,662,973.91 20,987,962.90
(1) Disposal or
3,614,180.06 3,561,037.09 11,075,804.71 2,662,973.91 20,913,995.77
scrapping
(2) Transfer into
73,967.13 73,967.13
construction in progress
4. Impact of change in
1,262,771.33 353,818.22 2,540,159.29 135,860.72 4,292,609.56
exchange rate
5. Closing balance 1,222,753,831.35 301,720,249.02 965,577,694.86 33,854,908.98 2,523,906,684.21
II. Accumulated Depreciation
1. Opening balance 374,701,516.70 215,850,570.93 602,573,724.20 26,528,571.35 1,219,654,383.18
2. Increase 22,106,976.50 13,713,752.77 29,351,870.90 1,428,489.61 66,601,089.78
(1) Provision 22,106,976.50 13,713,752.77 29,351,870.90 1,428,489.61 66,601,089.78
3. Decrease 1,543,896.00 3,268,346.66 10,267,263.15 1,640,901.09 16,720,406.90
(1) Disposal or 1,543,896.00 3,268,346.66 10,267,263.15 1,640,901.09 16,720,406.90
112
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
scrapping
4. Impact of change in
447,980.64 248,278.08 1,167,939.95 112,731.30 1,976,929.97
exchange rate
5. Closing balance 395,712,577.84 226,544,255.12 622,826,271.90 26,428,891.17 1,271,511,996.03
III. Impairment Provision
IV. Book Value
1. Closing book value 827,041,253.51 75,175,993.90 342,751,422.96 7,426,017.81 1,252,394,688.18
2. Opening book value 848,853,544.87 80,335,048.08 367,471,736.77 6,415,061.31 1,303,075,391.03
(2) Fixed assets with certificate of titles unsettled
Unit: RMB
Item Book value Reasons for unsettlement
After all projects were completed, and the completion and settlement
Multi-purpose Dormitory Hall of
35,402,162.21 procedures were fulfilled, the property ownership certificate shall be
Shaoxing Supor
processed uniformly
After all projects were completed, and the completion and settlement
No.3 plant of Shaoxing Supor 25,974,307.78 procedures were fulfilled, the property ownership certificate shall be
processed uniformly
After all projects were completed, and the completion and settlement
No.1 plant of Shaoxing Supor 23,846,757.31 procedures were fulfilled, the property ownership certificate shall be
processed uniformly
After all projects were completed, and the completion and settlement
No.8 plant of Shaoxing Supor 28,479,045.29 procedures were fulfilled, the property ownership certificate shall be
processed uniformly
After all projects were completed, and the completion and settlement
Multi-purpose Canteen Hall of
11,794,005.15 procedures were fulfilled, the property ownership certificate shall be
Shaoxing Supor
processed uniformly
After all projects were completed, and the completion and settlement
No.12 plant of Shaoxing Supor 12,065,584.66 procedures were fulfilled, the property ownership certificate shall be
processed uniformly
After all projects were completed, and the completion and settlement
Transformer substation (35 kV) of
1,138,627.81 procedures were fulfilled, the property ownership certificate shall be
Shaoxing Supor
processed uniformly
After all projects were completed, and the completion and settlement
No.13 plant of Shaoxing Supor 15,681,254.01 procedures were fulfilled, the property ownership certificate shall be
processed uniformly
After all projects were completed, and the completion and settlement
No.14 plant of Shaoxing Supor 23,927,041.58 procedures were fulfilled, the property ownership certificate shall be
processed uniformly
After all projects were completed, and the completion and settlement
No.15 plant of Shaoxing Supor 41,578,209.23 procedures were fulfilled, the property ownership certificate shall be
processed uniformly
After all projects were completed, and the completion and settlement
Forklift charging room of Shaoxing
870,216.27 procedures were fulfilled, the property ownership certificate shall be
Supor
processed uniformly
Transfer procedures of land use right certificate were not settled due to
Generator room of P&R Products 1,427.89
land ownership issue
Water pump building and structures Transfer procedures of land use right certificate were not settled due to
84,161.20
of P&R Products land ownership issue
Extended plant for bakelite Transfer procedures of land use right certificate were not settled due to
185,765.51
workshop of P&R Products land ownership issue
113
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Polishing workshop of P&R Transfer procedures of land use right certificate were not settled due to
89,280.00
Products land ownership issue
Total 221,117,845.90
14. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 16,386,809.27 12,005,654.73
Total 16,386,809.27 12,005,654.73
(1) Details of construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Piecemeal projects 4,211,093.30 4,211,093.30 82,038.73 82,038.73
Equipment payment 1,161,148.97 1,161,148.97 909,049.00 909,049.00
Warehouse project of
11,014,567.00 11,014,567.00 11,014,567.00 11,014,567.00
Shaoxing Supor
Total 16,386,809.27 16,386,809.27 12,005,654.73 12,005,654.73
(2) Changes in significant projects
Unit: RMB
Includin
Accumul
g:
ated Interest
Accumul Amount
Transferr Completi amount capitaliz
ated of
Opening ed to Other Closing on of ation rate Capital
Items Budgets Increase investme interest
balance fixed decrease balance percenta borrowin in source
nt to capitaliz
assets ge (%) g cost current
budget ation in
capitaliz period
current
ation
period
Pieceme Self-
82,038.7 5,353,32 1,224,27 4,211,09
al owned
3 7.92 3.25 3.30 capital
projects
Equipme Self-
909,049. 1,002,35 750,250. 1,161,14
nt owned
00 0.00 00 8.97 capital
payment
Wareho
use
Self-
project 13,578,3 11,014,5 11,014,5
81.12% 81.12% owned
of 53.00 67.00 67.00 capital
Shaoxing
Supor
13,578,3 12,005,6 6,355,67 1,974,52 16,386,8
Total
53.00 54.73 7.92 3.25 09.27
114
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
15. Right-of-use assets
Unit: RMB
Item Buildings and structures Land Total
I. Original Book Value
1. Opening balance 263,207,787.03 3,228,879.08 266,436,666.11
2. Increase 33,274,002.52 33,274,002.52
3. Decrease 20,794,628.41 20,794,628.41
4. Exchange rate effect 86,943.40 103,606.63 190,550.03
5. Closing balance 275,774,104.54 3,332,485.71 279,106,590.25
II. Accumulated Depreciation
1. Opening balance 75,512,489.83 205,213.46 75,717,703.29
2. Increase 17,956,059.41 45,652.22 18,001,711.63
(1) Provision 17,956,059.41 45,652.22 18,001,711.63
3. Decrease 4,209,908.96 4,209,908.96
(1) Disposal 4,209,908.96 4,209,908.96
4. Exchange rate effect 17,491.67 5,803.01 23,294.68
5. Closing balance 89,276,131.95 256,668.69 89,532,800.64
III. Impairment Provision
IV. Book Value
1. Closing book value 186,497,972.59 3,075,817.02 189,573,789.61
2. Opening book value 187,695,297.20 3,023,665.62 190,718,962.82
16. Intangible assets
(1) Details
Unit: RMB
Trademark use Pollution
Item Land use right Software Total
right discharge right
I. Original Book Value
1. Opening balance 475,027,652.21 47,328,811.32 98,175,198.47 620,531,662.00
2. Increase 2,451,105.34 9,894,760.97 12,345,866.31
(1) Acquisition 2,451,105.34 9,894,760.97 12,345,866.31
(2) In-house R&D
(3) Increase from
enterprise merger
3. Decrease 175,230.74 175,230.74
115
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(1) Disposal 175,230.74 175,230.74
4. Impact of change in
195,140.48 46,845.06 241,985.54
exchange rate
5. Closing balance 475,222,792.69 47,328,811.32 100,497,918.13 9,894,760.97 632,944,283.11
II. Accumulated Amortization
1. Opening balance 98,466,631.62 33,085,117.90 48,962,179.32 180,513,928.84
2. Increase 4,988,679.50 2,366,440.57 4,852,728.24 989,476.10 13,197,324.41
(1) Provision 4,988,679.50 2,366,440.57 4,852,728.24 989,476.10 13,197,324.41
3. Decrease 175,230.74 175,230.74
(1) Disposal 175,230.74 175,230.74
4. Impact of change in
70,194.98 33,891.51 104,086.49
exchange rate
5. Closing balance 103,525,506.10 35,451,558.47 53,673,568.33 989,476.10 193,640,109.00
III. Impairment Provision
IV. Book Value
1. Closing book value 371,697,286.59 11,877,252.85 46,824,349.80 8,905,284.87 439,304,174.11
2. Opening book value 376,561,020.59 14,243,693.42 49,213,019.15 440,017,733.16
At the end of the current period, the proportion of intangible assets formed through internal R&D in the balance of intangible assets
was 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 115,125,700.89 24,560,522.85 104,854,363.88 23,059,580.50
Profits not realized by internal
70,134,220.01 16,985,534.50 80,178,943.70 19,496,741.80
transaction
Deductible losses 47,486,329.98 11,609,800.16 16,402,564.88 3,626,289.50
Accrued expenses 1,245,872,901.05 300,889,298.42 1,349,115,519.54 326,749,720.17
Accrued salary 33,580,670.58 8,395,167.65 42,347,931.51 10,586,982.88
Estimated liabilities 12,085,095.50 1,812,764.33 12,640,441.72 1,896,066.26
Share-based payment 82,035,458.08 18,887,300.93 51,889,706.92 12,000,187.47
Expected returns 6,212,408.79 1,483,959.74 8,355,059.11 2,052,992.64
Lease obligation 196,948,156.82 48,823,611.46 198,844,124.74 48,991,135.15
Total 1,809,480,941.70 433,447,960.04 1,864,628,656.00 448,459,696.37
116
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(2) Un-offset deferred income tax liabilities
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Right-of-use assets 189,573,789.61 47,001,133.15 190,718,962.82 46,986,767.52
合计 189,573,789.61 47,001,133.15 190,718,962.82 46,986,767.52
(3) Deferred income tax assets or liabilities presented with net amount after offsetting
Unit: RMB
Offsetting amount Offsetting amount
Closing balance of Opening balance of
between deferred between deferred
deferred income tax deferred income tax
Item income tax assets and income tax assets and
assets or liabilities after assets or liabilities after
liabilities at the liabilities at the
offsetting offsetting
beginning of the period beginning of the period
Deferred income tax
47,001,133.15 386,446,826.89 46,986,767.52 401,472,928.85
assets
Deferred income tax
47,001,133.15 46,986,767.52
liabilities
(4) Detail about unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 21,785,546.88 15,629,891.75
Deductible losses 31,090,395.45 28,216,721.82
Total 52,875,942.33 43,846,613.57
(5) Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
Year Closing amount Opening balance Remarks
2024 8,287,689.09 8,287,689.09
2025 6,945,189.33 6,945,189.33
2026 7,751,051.17 7,751,051.17
2027 5,232,792.23 5,232,792.23
2028 2,873,673.63
Total 31,090,395.45 28,216,721.82
18. Notes payable
Unit: RMB
117
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Type Closing balance Opening balance
Bank acceptance bill 1,395,862,500.00 1,057,611,900.00
Total 1,395,862,500.00 1,057,611,900.00
Other remarks
All of the above amounts represent notes payable due within one year, the amount of due unpaid notes payable was RMB 0.00 at the
end of the current period.
19. Accounts payable
(1) Details
Unit: RMB
Item Closing balance Opening balance
Goods payment 1,230,849,669.91 1,274,889,065.48
Equipment and engineering funds 32,782,753.65 67,104,579.12
Expenses payment 1,232,773,577.43 1,293,527,903.59
Total 2,496,406,000.99 2,635,521,548.19
Other remarks:
As at June 30, 2023, Supor had no significant accounts payable with an age of more than one year (December 31, 2022: None).
20. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advances on sales 480,254,227.80 1,153,932,879.53
Total 480,254,227.80 1,153,932,879.53
Unit: RMB
Item Variation amount Variation reason
Including the revenue recognized by the amount of book value of contract
Advances on sales -1,153,932,879.53
liabilities at the beginning of the year
The amount increased due to receipt of cash (excluding the amount
Advances on sales 480,254,227.80
recognized as revenue in the current year)
Total -673,678,651.73
21. Employee remunerations payable
(1) Details
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term Employee Remuneration 282,609,935.60 803,028,890.22 862,803,206.31 222,835,619.51
II. Post-employment Benefits - Defined 5,885,187.48 49,626,892.19 49,245,042.83 6,267,036.84
118
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Contribution Plan
III. Termination Benefit 580,305.42 185,949.52 355,150.87 411,104.07
Total 289,075,428.50 852,841,731.93 912,403,400.01 229,513,760.42
(2) Details of short-term employee remuneration
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus, allowance and subsidy 238,523,830.57 712,337,196.96 770,116,251.42 180,744,776.11
2. Employee services and benefits 3,768,543.21 35,310,155.44 36,265,432.01 2,813,266.64
3. Social insurance charges 4,059,152.74 26,285,014.77 26,326,563.33 4,017,604.18
Including: Occupational injuries insurance
316,180.86 1,884,881.88 1,921,554.57 279,508.17
premium
Medical and Maternity insurance premium 3,742,971.88 24,400,132.89 24,405,008.76 3,738,096.01
4. Housing accumulation fund 163,804.08 21,364,095.85 21,341,685.55 186,214.38
5. Trade union fund and employee education
36,094,605.00 7,732,427.20 8,753,274.00 35,073,758.20
fund
Total 282,609,935.60 803,028,890.22 862,803,206.31 222,835,619.51
Other remarks:
On March 25, 2019, the General Office of the State Council published the Opinions on Comprehensively Promoting the Merger and
Implementation of Maternity Insurance and Employee Basic Medical Insurance to promote the merger and implementation of the two
types of insurance.
(3) Details of defined contribution plan
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic endowment insurance 5,684,246.20 48,053,674.41 47,683,344.82 6,054,575.79
2. Unemployment insurance premium 200,941.28 1,573,217.78 1,561,698.01 212,461.05
Total 5,885,187.48 49,626,892.19 49,245,042.83 6,267,036.84
(4) Termination benefit
Supor's termination benefits due to rescinding labor relations during the reporting period were RMB 355,150.87 (the same period in
2022: RMB 9,216,701.11), and the outstanding amount payable at the end of the period was RMB 411,104.07 (December 31, 2022:
RMB 580,305.42).
22. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT 20,167,342.75 29,951,962.61
119
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Enterprise income tax 123,671,132.75 141,680,509.34
Individual income tax 2,700,726.31 3,309,618.70
Urban maintenance and construction tax 4,786,540.13 5,065,611.60
Housing property tax 5,629,315.21 10,036,243.48
Land use tax 4,479,469.56 6,702,356.53
Stamp tax 3,991,774.24 4,127,604.37
Education surcharge 2,053,509.20 2,201,227.48
Local education surcharge 1,389,170.52 1,533,579.16
Total 168,868,980.67 204,608,713.27
23. Other payables
Unit: RMB
Item Closing balance Opening balance
Other payables 139,535,730.90 137,729,222.63
Total 139,535,730.90 137,729,222.63
(1) Other payables
1) Listing by nature
Unit: RMB
Item Closing balance Opening balance
Deposit as security 107,553,491.57 99,096,157.97
Temporary receipts payable 12,103,726.46 21,538,362.25
Others 19,878,512.87 17,094,702.41
Total 139,535,730.90 137,729,222.63
24. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease obligations due within one year 45,009,692.66 41,924,940.24
Total 45,009,692.66 41,924,940.24
25. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
120
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Refund payable 16,211,128.43 22,621,360.23
Endorsed bank acceptance bill unrecognized 16,967,274.33 22,383,800.87
Output tax to be written-off 61,606,353.03 149,694,451.88
Total 94,784,755.79 194,699,612.98
26. Lease obligation
Unit: RMB
Item Closing balance Opening balance
Long-term lease obligations 187,365,120.99 192,704,856.82
Minus: Lease obligations due within one year -45,009,692.66 -41,924,940.24
Total 142,355,428.33 150,779,916.58
Other remarks:
Supor also rented employee dormitories, temporary warehouses, etc. for a lease term up to one year, representing short-term leases.
Supor had chosen not to recognize the right-of-use assets and lease obligations for these leases.
27. Long-term employee remunerations payable
(1) Details
Unit: RMB
Item Closing balance Opening balance
II. Termination Benefit 1,255,162.03 1,441,111.55
Total 1,255,162.03 1,441,111.55
28. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Reasons for the balance
For details, please refer to Note XIV. "Commitments and
Pending lawsuit 10,688,727.50 11,150,000.00
Contingencies"
Financial guarantee For details, please refer to Note XIV. "Commitments and
1,396,368.00 1,490,441.72
contract Contingencies"
Total 12,085,095.50 12,640,441.72
29. Share capital
Unit: RMB
Increase/decrease in the period (+, -)
Opening Convert Closing balance
balance New shares Shares bonus ed Others Subtotal
capital
121
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Total shares 808,654,476.00 -1,945,819.00 -1,945,819.00 806,708,657.00
Other remarks:
The decrease in share capital in this year was RMB 1,945,819.00, including the repurchase and deregistration of 75,750 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 75,750.00. The 19th Session of the Seventh Board of Directors of the Company reviewed and adopted
the Proposal on Terminating the Public Shares Repurchase Plan. It decided to terminate the implementation of the Proposal on Public
Shares Repurchase Plan adopted by the Annual General Meeting of Shareholders for 2021 Fiscal Year. A total of 1,870,069
repurchased shares was cancelled, resulting in the corresponding decrease of share capital by RMB 1,870,069.00.
30. Capital reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other capital reserve 125,368,989.44 26,960,674.13 152,329,663.57
Total 125,368,989.44 26,960,674.13 152,329,663.57
Other remarks (including increase and decrease in current period and variation reason):
1) The increase of RMB 26,960,674.13 in other capital reserves in the current period refers to ① The equity-settled share-based
payment amount of RMB 26,177,298.00 in the current period included in the capital reserve (other capital reserves), as detailed in Note
XIII. "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 exceeded the cost recognized in the waiting period. The deferred income tax assets formed by the
excess of RMB 783,376.13 were directly included into the capital reserve - other capital reserves.
31. Treasury shares
Unit: RMB
Item Opening balance Increase Decrease Closing balance
treasury share 99,724,823.49 230,205,750.50 91,733,144.12 238,197,429.87
Total 99,724,823.49 230,205,750.50 91,733,144.12 238,197,429.87
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 Annual General Meeting of Shareholders for 2021 Fiscal
Year reviewed and adopted the Proposal on Public Shares Repurchase Plan. 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
was that the Company repurchased 1,545,000 shares of the Company from the secondary market in the form of centralized competitive
trading during the reporting period, totaling RMB 79,937,608.83, and the repurchase handling fee was RMB 8,073.73.
2) The 19th Session of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2022 Fiscal Year of the
Company reviewed and adopted the Proposal on Public Shares Repurchase Plan. The Company planned to use self-owned capital to
buy back its shares for the write-off and decrease of the registered capital and the implementation of equity incentives. The increase in
the current period was that, during the reporting period, the Company repurchased 3,160,000 shares of the Company from the secondary
market by way of centralized competitive bidding transactions, amounting to RMB 150,244,885.00, plus a repurchase handling fee of
RMB 15,182.94.
3) The annual decrease of the treasury share capital was RMB 91,733,144.12. ① The 19th Session of the Seventh Board of Directors
of the Company reviewed and adopted the Proposal on Terminating the Public Shares Repurchase Plan. It decided to terminate the
122
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
implementation of the Proposal on Public Shares Repurchase Plan adopted by the Annual General Meeting of Shareholders for 2021
Fiscal Year. A total of 1,870,069 shares was repurchased and cancelled during the reporting period, resulting in the corresponding
decrease of share capital by RMB 88,006,804.12.
② According to the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects reviewed and adopted at the 18th
Session of the Seventh Board of Directors and the 17th Session of the Seventh Board of Supervisors held on January 31, 2023, 79,000
restricted shares were granted to incentive objects this year, with the grant amount of RMB 3,729,590. At the same time, the treasury
shares and the liabilities for repurchase obligations were recognized at RMB 79,000 based on the number of restricted stocks issued
and the corresponding repurchase price of RMB 1 per share.
③At the 14th Session of the Seventh Board of Directors of the Company, for disqualification of thirteen incentive objects due to their
resignation, the Company decided to repurchase and cancel 53,000 shares of Restricted Stock at the price of RMB 1 per share, with
the decrease of the repurchase obligation by RMB 53,000 accordingly. At the 19th Session of the Seventh Board of Directors of the
Company, for disqualification of six incentive objects due to their resignation, the Company decided to repurchase and cancel 22,750
shares of Restricted Stock at the price of RMB 1 per share, with the decrease of the repurchase obligation by RMB 22,750 accordingly.
32. Other comprehensive incomes
Unit: RMB
Amount incurred during this period
Minus: Minus:
Other Other
comprehensi comprehensi Attributabl
Opening Current period Minus:
Item ve incomes ve incomes Attributable to e to Closing balance
balance cumulative Income
carried carried parent minority
before income tax
forward forward company shareholde
tax expenses
transferred transferred r
to profits to retained
and losses earnings
II. Other
Comprehensi
ve Incomes to
Be -20,454,823.26 17,969,332.42 17,051,537.83 917,794.59 -3,403,285.43
Reclassified
into the Profit
and Loss
Conversi
on difference
in foreign
-20,454,823.26 17,969,332.42 17,051,537.83 917,794.59 -3,403,285.43
currency
financial
statement
Total other
comprehensiv -20,454,823.26 17,969,332.42 17,051,537.83 917,794.59 -3,403,285.43
e income
33. Surplus reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserve 356,924,811.32 11,295,563.32 86,136,735.12 282,083,639.52
123
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Total 356,924,811.32 11,295,563.32 86,136,735.12 282,083,639.52
Remarks on surplus reserve (including increase and decrease in current period and variation reason):
The decrease of surplus reserve in the current period was because of the Company's deregistration of 1,870,069 repurchased shares,
where the amount of difference between the price paid for the repurchased shares and the face value of the shares was adjuste d to offset
the capital reserve-share capital premium, and the insufficient part shall be used to offset the surplus reserve by RMB 86,136,735. 12.
The increase in the current period was due to the surplus reserve balance after cancellation of repurchased shares was less than 50% of
the registered capital of the Company, so the surplus reserve was increased by RMB 11,295,563.32.
34. Undistributed profits
Unit: RMB
Item Current period Preceding period
Undistributed profits at the end of last period before adjustment 5,865,316,233.53 6,451,748,564.12
Undistributed profits at period beginning after adjustment 5,865,316,233.53 6,451,748,564.12
Plus: Net profit attributable to owners of the parent company 880,618,279.78 932,849,164.03
Minus: withdrawal of statutory surplus reserve 11,295,563.32
Common share dividends payable 2,439,504,228.21 1,559,494,958.68
Grant restricted stock 3,650,590.00 76,150,757.24
Undistributed profits at the end of the period 4,291,484,131.78 5,748,952,012.23
Adjustment of undistributed profits at period beginning:
1). Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations, undistributed profit
at period beginning was changed by RMB 0.00.
2). Due to change of accounting policies, undistributed profit at period beginning was changed by RMB 0.00.
3). Due to rectification of important accounting errors, undistributed profit at period beginning was changed by RMB 0.00.
4). Due to change of merger scope resulted from same control, undistributed profit at period beginning was changed by RMB 0.00.
5). Due to other adjustment, undistributed profit at period beginning was changed by RMB 0.00.
35. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Revenue from main
9,872,392,009.04 7,352,664,336.65 10,256,439,431.57 7,622,713,387.19
business
Revenue from other
110,224,431.69 92,164,920.06 67,540,313.25 47,736,567.42
operations
Total 9,982,616,440.73 7,444,829,256.71 10,323,979,744.82 7,670,449,954.61
Information related to revenue:
Unit: RMB
124
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Contract classification Total
Commodity type
Including:
Cookware and utensil 2,516,239,088.69
Electrical cooking 4,495,040,148.58
Food cooking appliance 1,691,379,401.26
Other domestic appliances 1,279,957,802.20
Classified by business area
Wherein:
Domestic sales 7,501,764,475.40
Export sales 2,480,851,965.33
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of this reporting period, the amount of revenue corresponding to the performance obligations that had been signed but had
not been performed or not yet completed was RMB 480,254,227.80, of which RMB 480,254,227.80 was expected to be recognized as
income in 2023 Fiscal Year.
36. Taxes and surcharges
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Urban maintenance and construction tax 28,302,388.21 34,278,449.74
Education surcharge 12,198,871.58 14,678,925.15
Housing property tax 6,001,349.28 6,514,302.51
Land use tax -1,095,848.57 -1,684,552.99
Vehicle and vessel use tax 24,666.40 27,176.40
Stamp tax 7,496,718.40 3,852,928.84
Local education surcharge 8,132,580.98 9,785,950.09
Environmental protection tax 24,982.96 46,908.98
Total 61,085,709.24 67,500,088.72
Other remarks
See Note 6, Taxes, for details of the criteria for the accrual of each tax and surcharge.
37. Sales expenses
Unit: RMB
Item Amount incurred during Amount incurred during
125
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
this period prior period
Advertising, sales promotion, and special gift expenses 804,802,932.70 793,740,249.03
Employee remuneration 186,421,466.63 200,599,623.31
Office and business traveling expenses 69,697,274.57 58,158,944.19
Others 37,478,960.84 26,086,187.57
Total 1,098,400,634.74 1,078,585,004.10
38. Administrative expenses
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Employee remuneration 116,970,686.38 109,519,189.69
Office, business traveling and depreciation and amortization expenses 38,412,018.68 38,758,513.91
Equity incentive expenses 16,286,046.00 21,404,889.90
Others 17,364,037.34 18,975,433.26
Total 189,032,788.40 188,658,026.76
39. R&D expenses
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Employee remuneration 98,660,270.10 97,605,516.41
Trial production experiment cost and consumption expenditure 16,372,788.48 45,231,026.76
New product design cost 21,374,954.51 21,083,513.80
Patent and external institutional fees 22,692,517.92 20,485,620.53
Others 15,283,271.41 10,076,125.92
Total 174,383,802.42 194,481,803.42
40. Financial expenses
Unit: RMB
Amount incurred during Amount incurred during
Item
this period prior period
Interest expense of loans and accounts payable 1,741,376.23 80,604.70
Interest revenue of deposits and receivables -49,382,432.80 -32,112,351.33
Interest expense of lease obligations 5,459,272.66 4,729,836.91
Gain or loss on net foreign exchange -2,424,046.37 -16,222,180.30
126
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Handling fee and other financial expenses 2,354,288.69 2,708,735.34
Total -42,251,541.59 -40,815,354.68
41. Other incomes
(1) Classification of other income
Unit: RMB
Source of other revenues Amount incurred during this period Amount incurred during prior period
29,022,563.56
Government subsidies concerning daily activities 39,595,641.01
1,188,758.28
Refund of handling fee for withholding individual income tax 1,092,207.14
Total 30,211,321.84 40,687,848.15
(2) Government subsidies concerning daily activities
Unit: RMB
Amount incurred during this Amount incurred during
Subsidy item Related to assets/income
period prior period
1,729,084.60
Project subsidy 11,916,692.79 Related to benefits
2,894,000.00
Government reward 9,700,000.00 Related to benefits
24,399,478.96
Tax returns 17,978,948.22 Related to benefits
Total 29,022,563.56 39,595,641.01
42. Investment income
Unit: RMB
Amount incurred Amount incurred during
Item
during this period prior period
Income from long-term equity investments under the equity method -460,529.47 -457,219.85
Investment income from disposal of transactional financial assets 7,170,581.56 2,801,323.05
Interest from term deposit 5,852,397.27 29,159,105.64
Investment income of debt investment during the holding period 18,450,770.17 6,713,635.48
Total 31,013,219.53 38,216,844.32
43. Gains from changes in fair value
Unit: RMB
Amount incurred Amount incurred during
Resource for gains from changes in fair value
during this period prior period
Transactional financial assets 129,103.13 550,529.85
Total 129,103.13 550,529.85
127
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
44. Credit impairment loss
Unit: RMB
Amount incurred Amount incurred during
Item
during this period prior period
Loss for bad debts of other receivables -504,792.54 -473,075.27
Accounts receivable -12,624,888.07 25,130,551.51
Financial guarantee contract 94,073.72 564,964.97
Total -13,035,606.89 25,222,441.21
45. Asset impairment loss
Unit: RMB
Amount incurred Amount incurred
Item
during this period during prior period
II. Loss on Inventory Depreciation and Impairment Loss of Contract
-5,771,681.15 -16,045,044.53
Performance Cost
Total -5,771,681.15 -16,045,044.53
46. Assets disposal income
Unit: RMB
Amount incurred Amount incurred during
Source of assets disposal income
during this period prior period
Profits from disposal of non-current assets (loss is filled by "-") -1,528,389.30 -498,368.94
Proceeds from the disposal of the right-of-use assets 530,406.83 304,915.84
Total -997,982.47 -193,453.10
47. Non-operating incomes
Unit: RMB
Amount included into non-
Amount incurred during this Amount incurred
Item recurring profit or loss of the
period during prior period
current period
Damage and scrapping gains of non-
157,741.35 125,962.34 157,741.35
current assets
Including: Gains from scrap of fixed
157,741.35 125,962.34 157,741.35
assets
Default fine revenue 939,310.46 937,976.52 939,310.46
Others 592,034.76 1,224,315.17 592,034.76
Total 1,689,086.57 2,288,254.03 1,689,086.57
48. Non-operating expenses
Unit: RMB
128
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Amount included into non-
Amount incurred during this Amount incurred
Item recurring profit or loss of the
period during prior period
current period
Donation expenditures 1,162,779.05 1,120,000.02 1,162,779.05
Damage and scrapping losses of non-
765,667.84 245,051.52 765,667.84
current assets
Including: Losses from scrapping of
765,667.84 245,051.52 765,667.84
fixed assets
Others 315,030.27 1,531,257.29 315,030.27
Total 2,243,477.16 2,896,308.83 2,243,477.16
49. Income tax expenses
(1) Details
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Current period income tax expenses 203,086,520.76 316,759,106.44
Deferred income tax expenses 15,809,478.09 2,497,447.66
Total 218,895,998.85 319,256,554.10
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
Amount incurred during this
Item
period
Total profit 1,098,129,774.21
Income tax expenses based on statutory/applicable tax rate 274,532,443.55
Effect of different tax rate applicable to subsidiaries -55,240,108.52
Effect of prior income tax reconciliation -3,407,872.49
Effect of deductible temporary differences or deductible losses of unrecognized deferred income
3,019,072.51
tax assets in the current period
Effect of tax rate variation on deferred income taxes balance at the beginning of the period -7,536.20
Income tax expenses 218,895,998.85
50. Other comprehensive incomes
Refer to Notes 32 for details.
129
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
51. Cash flow statement items
(1) Other cash receipts related to operating activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Receipt of government subsidies 4,623,084.60 22,708,899.93
Receipt of deposit, security and staff reserve fund loan 9,037,333.60 10,386,022.99
Interest revenues 21,191,658.08 22,572,015.53
Others 22,693,410.19 10,594,834.36
Total 57,545,486.47 66,261,772.81
(2) Other cash payments related to operating activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Cash payment for sales expense 984,966,555.13 899,665,674.62
Cash payment for administrative expenses 70,192,567.60 60,907,658.14
Cash payment for R&D expenses 74,575,724.73 109,717,018.05
Donations payment 694,727.20 673,091.00
Other payments 1,784,876.82 5,512,875.25
Total 1,132,214,451.48 1,076,476,317.06
(3) Other cash receipts related to investing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Recovery of principal of financial products and term
2,647,094,578.70 1,380,000,000.00
deposits
Total 2,647,094,578.70 1,380,000,000.00
(4) Other cash payments related to investing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Cash payment for financial products and term deposit 1,540,000,000.00 550,000,000.00
Total 1,540,000,000.00 550,000,000.00
130
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(5) Other cash receipts related to financing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Receipt of equity incentive payments 79,000.00
Total 79,000.00
(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 230,205,750.50 58,185,415.23
Cash paid for repayment of lease
32,865,808.90 21,490,157.99
obligation principal and interest
Total 263,071,559.40 79,675,573.22
52. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
Amount in the current Amount of last
Supplement information
period period
1. Reconciliation of net profit to cash flow from operating activities:
Net profit 879,233,775.36 933,694,778.89
Plus: Impairment provision of assets 5,771,681.15 16,045,044.53
Credit impairment loss 13,035,606.89 -25,222,441.21
Depreciation of fixed assets, oil and gas assets, productive biological assets 66,601,089.78 62,262,292.80
Depreciation of right-of-use assets 18,001,711.63 22,473,391.88
Amortization of intangible assets 13,197,324.41 11,583,100.10
Amortization of long-term unamortized expenses
Loss on disposal of fixed assets, intangible assets and other long-term assets
997,982.47 193,453.10
("-" for gains)
Fixed assets retirement loss ("-" for gains) 607,926.49 119,089.18
Losses from changes in fair value ("-" for revenue) -129,103.13 -550,529.85
Financial expenses ("-" for gains) -2,424,046.38 -16,222,180.30
Investments losses ("-" for gains) -31,013,219.53 -38,216,844.32
Decrease of deferred income tax assets ("-" for increase) 15,026,101.96 2,497,447.66
Increase of deferred income tax liabilities ("-" for decrease)
131
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Decrease in inventories ("-" for increase) 554,366,591.39 799,978,326.78
Decrease in operating receivables ("-" for increase) -214,465,453.45 510,296,788.15
Increase in operating payables ("-" for decrease) -789,944,755.92 -933,306,325.73
Others 26,177,298.00 -36,780,525.33
Net cash flows from operating activities 555,040,511.12 1,308,844,866.33
2. Significant investing and financing activities not related to cash receipts and
payments:
Conversion of debt into capital
Convertible bonds to be matured within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 1,344,219,071.30 3,008,602,558.47
Minus: Opening balance of cash 2,395,932,752.38 2,443,731,679.06
Plus: Closing balance of cash equivalents
Minus: Opening balance of cash equivalents
Net increase in cash and cash equivalents -1,051,713,681.08 564,870,879.41
(2) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 1,344,219,071.30 2,395,932,752.38
Including: Cash on hand 61,638.32 56,591.47
Cash in bank on demand for payment 1,319,747,410.78 2,361,573,752.74
Other monetary capitals on demand for payment 24,410,022.20 34,302,408.17
III. Balance of Cash and Cash Equivalents at the End of the Period 1,344,219,071.30 2,395,932,752.38
53. Assets with title or use right restrictions
Unit: RMB
Item Closing book value Reasons for restrictions
Monetary capital 58,000,000.00 Receipt of Deposit security for advance payment financing
Monetary capital 405,723,750.00 Bank acceptance bill security
Monetary capital 948,609.32 Security and frozen funds of e-commerce platforms
Total 464,672,359.32
132
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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 35,123,484.51 7.2258 253,795,274.37
EUR 29,790.45 7.8771 234,662.35
GBP 18,829.55 9.1432 172,162.34
VND 15,517,007,067.80 0.000306438 4,755,000.61
SGD 93,543.07 5.3442 499,912.87
IDR 26,638,257,912.92 0.000484 12,892,916.83
Accounts receivable
Including: USD 24,350,640.75 7.2258 175,952,859.93
VND 9,307,668,834.50 0.000306438 2,852,223.42
IDR 5,957,592,898.00 0.000484 2,883,474.96
Accounts payable
Including: USD 2,148,315.58 7.2258 15,523,298.72
EUR 232.00 7.8771 1,827.49
VND 72,558,811,220.86 0.000306438 22,234,776.99
SGD 30,230.00 5.3442 161,555.17
IDR 2,870,399,839.45 0.000484 1,389,273.52
(2) Description of overseas business entities, including important overseas business entities, shall disclose
their principal overseas place of business, the recording currency and the basis for selection, and shall also
disclose the reasons for changes in the recording currency.
□ Applicable Not-applicable
VIII. Change on Merger Scope
1. Others
During the current period, the Company has not changed the merger scope.
133
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
IX. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise group
Main Shareholding ratio
Place of Business Acquisition
Subsidiary name operating
registration nature Direct Indirect method
place
Manufactu
Zhejiang Supor Electrical Appliances Establishme
Hangzhou Hangzhou ring 100.00%
Manufacturing Co., Ltd. [Note 1] nt
industry
Manufactu
Zhejiang Shaoxing Supor Domestic Electrical Establishme
Shaoxing Shaoxing ring 100.00%
Appliances Co., Ltd. [Note 1] nt
industry
Manufactu
Establishme
Supor (Vietnam) Co., Ltd. [Note 1] Vietnam Vietnam ring 100.00%
nt
industry
Establishme
Wuhan Supor Recycling Co., Ltd. [Note 1] Wuhan Wuhan Commerce 100.00%
nt
Manufactu
Wuhan Supor Cookware Co., Ltd. [Note 1] [Note Establishme
Wuhan Wuhan ring 25.00% 75.00%
2] nt
industry
Hangzhou Omegna Commercial Trade Co., Ltd. Establishme
Hangzhou Hangzhou Commerce 100.00%
[Note 1] nt
Shanghai Supor Cookware Marketing Co., Ltd. Establishme
Shanghai Shanghai Commerce 100.00%
[Note 1] nt
Enterprise
Manufactu
merger
Wuhan Supor Pressure Cooker Co., Ltd. [Note 1] Wuhan Wuhan ring 100.00%
under the
industry
same control
Enterprise
Manufactu
Zhejiang Supor Plastic & Rubber Co., Ltd. [Note merger
Yuhuan Yuhuan ring 100.00%
1] under the
industry
same control
Enterprise
Yuhuan Supor Cookware Marketing Co., Ltd. merger not
Yuhuan Yuhuan Commerce 100.00%
[Note 1] under the
same control
Enterprise
merger
SEADA [Note 1] Singapore Singapore Commerce 51.00%
under the
same control
Enterprise
AFS Vietnam Management Co., Ltd. [Note 1] merger
Vietnam Vietnam Commerce 100.00%
[Note 3] under the
same control
Manufactu
Shanghai WMF Enterprise Development Co., Ltd. Establishme
Shanghai Shanghai ring 100.00%
[Note 1] nt
industry
Manufactu
Establishme
Zhejiang WMF Housewares Co., Ltd. [Note 1] Yuhuan Yuhuan ring 100.00%
nt
industry
Manufactu
Zhejiang Shaoxing Supor Housewares Products Establishme
Shaoxing Shaoxing ring 100.00%
Co., Ltd. [Note 1] nt
industry
134
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Manufactu
Zhejiang Supor Large Kitchen Appliance Co., Ltd. Establishme
Shaoxing Shaoxing ring 100.00%
[Note 1] nt
industry
Establishme
PT GROUPE SEB INDONESIA MSD [Note 4] Indonesia Indonesia Commerce 66.67%
nt
Manufactu
Zhejiang Supor Water Heater Co., Ltd. [Note 1] Establishme
Shaoxing Shaoxing ring 52.00%
[Note 5] nt
industry
Hainan Supor E-commerce Co., Ltd. [Note 1] Establishme
Hainan Hainan Commerce 100.00%
[Note 6] nt
Establishme
Hainan Tefal Trade Co., Ltd. [Note 1] [Note 6] Hainan Hainan Commerce 100.00%
nt
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, Supor Large Kitchen Appliance,
Supor Water Heater, Hainan Supor E-commerce Company and Hainan Tefal Trade Company.
Note 2: This is a subsidiary of Wuhan Supor Pressure Cooker Co., Ltd.; of which, Wuhan Supor Pressure Cooker Co., Ltd. holds 75%
shares and the Company holds 25% shares.
Note 3: The Company holds 51% equity of SEADA, and SEB INTERNATIONALE S.A.S holds 49% equity of the Company; AFS is
a subsidiary totally held by SEADA.
Note 4: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA, a subsidiary of the Company and PT
MULTIFORTUNA in Indonesia. SEADA holds 66.67% shares and PT MULTIFORTUNA holds 33.33% shares.
Note 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 Trade Company are wholly owned subsidiaries of Zhejiang Supor
Electrical.
(2) Significant not wholly-owned subsidiaries
Unit: RMB
Balance of minority
Holding proportion of Profit or loss attributable Dividend declared to
Subsidiary name shareholders' equities at
minority shareholder to minority shareholder minority shareholder
the end of the period
SEADA 49.00% -222,946.74 7,452,890.87
AFS 49.00% 70,730.19 -11,325.01
Indonesian Company 33.33% -1,451,131.79 651,539.62
Supor Water Heater 48.00% 218,843.92 28,045,509.43
(3) Main financial information of significant not wholly-owned subsidiaries
Unit: RMB
Closing balance Opening balance
Subsidiar Non- Non- Non- Non-
y name Current current
Total Current
current
Total Current
current
Total Current
current
Total
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
135
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
4,138,63 14,300,6 18,439,2 15,226,5 15,226,5 3,763,15 13,869,9 17,633,1 14,241,7 14,241,7
SEADA
5.37 19.92 55.29 89.63 89.63 7.10 63.20 20.30 65.93 65.93
3,303,78 511,819. 3,815,60 925,211. 386,931. 1,312,14 3,389,84 568,960. 3,958,80 1,070,52 439,200. 1,509,72
AFS
1.58 52 1.10 54 12 2.66 5.91 44 6.35 3.05 49 3.54
Indonesi
an 20,533,3 3,175,72 23,709,0 4,681,48 429,674. 5,111,16 19,265,2 4,387,41 23,652,6 3,939,05 487,307. 4,426,36
Compan 33.35 3.11 56.46 8.30 78 3.08 34.13 8.29 52.42 3.83 49 1.32
y
Supor
78,082,0 3,522,85 81,604,9 23,061,3 23,061,3 81,886,4 4,198,45 86,084,9 27,883,7 27,883,7
Water
85.88 8.45 44.33 16.75 16.75 79.37 0.08 29.45 42.19 42.19
Heater
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Subsidiary Cash flows Cash flows
Total Total
name Operating from Operating from
Net profit comprehensiv Net profit comprehensiv
income operating income operating
e income e income
activities activities
SEADA 301,678.75 -276,008.93 -178,688.71 72,408.63 487,263.80 880,735.29 946,504.87 202,599.96
AFS 144,347.33 233,715.07 1,656,447.93 159,433.94 238,911.66 913,081.75
Indonesian
8,025,028.37 -2,198,684.55 -628,397.72 736,297.67 7,834,711.92 699,115.39 811,416.04 699,146.18
Company
Supor Water 24,936,793.5 32,635,218.2
342,440.32 342,440.32 651,978.54 845,088.15 845,088.15 -1,246,208.23
Heater 4 7
2. Equity in joint venture or associated enterprises
(1) Significant joint venture or associated enterprises
Shareholding ratio Accounting
method for the
Main
Name of joint venture or Place of Business investment in
operating
associated enterprise registration nature Direct Indirect joint venture or
place
associated
enterprises
Wuhan Anzai Cookware Manufacturin
Wuhan Wuhan 30.00% Equity method
Co., Ltd. g industry
(2) Main financial information of significant associated enterprise
Unit: RMB
Closing balance/amount incurred during Opening balance/Amount incurred during
this period prior period
Current assets 119,924,534.32 127,719,328.09
Non-current assets 39,161,059.60 41,540,448.40
Total assets 159,085,593.92 169,259,776.49
Current liabilities 28,018,332.45 36,684,125.15
Non-current liabilities 472,500.00 540,000.00
136
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Total liabilities 28,490,832.45 37,224,125.15
Shareholders' equities attributable to the
130,594,761.47 132,035,651.34
parent company
Proportionate share in net assets 39,178,428.44 39,610,695.40
Adjusting events
--Goodwill 22,585,444.13 22,585,444.13
Book value of investments in associated
61,763,872.57 62,196,139.53
enterprises
Operating income 89,427,598.31 107,194,897.86
Net profit -1,440,889.88 -1,936,776.60
Total comprehensive income -1,440,889.88 -1,936,776.60
X. Risks Related To Financial Instruments
(I) Risk management objectives and policies
Supor aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to minimize
the adverse effects of risks on Supor's financial performance. Based on such objectives, Supor's risk management policies are
established to identify and analyze the risks faced by Supor, to set appropriate risk limits and controls, and to monitor risks and
adherence to limits.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash
flows due to changes in exchange rate. Supor's foreign currency risk relates mainly to foreign currency monetary assets and liabilit ies
of Supor. When short-term imbalance occurred to foreign currency assets and liabilities, Supor may conduct foreign exchange hedge
or trade foreign currency at market exchange rate when necessary, in order to maintain the net risk exposure within an acceptable level.
Please refer to notes to others - foreign currency monetary items for details in foreign currency financial assets and liabilities at
the end of the year of Supor.
Sensitivity analysis:
Assuming that other risk variables other than the exchange rate remain unchanged, the increase in shareholders' equities and net
profits due to the 1% appreciation of RMB due to the change in exchange rate of RMB against all foreign currencies as at June 30 of
Supor will be as follows. This influence is translated into RMB at the spot rate on the balance sheet date.
Shareholders' equities Net profit
June 30, 2023
USD 820,940.81 820,940.81
EUR 1,860.65 1,860.65
GBP 1,463.38 1,463.38
VND -117,020.42 -117,020.42
SGD 2,807.59 2,807.59
IDR 112,219.52 112,219.52
Total 822,271.53 822,271.53
137
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
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
(2) Interest risk - risk for cash flow changes
Interest risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash flows due
to market rate. As of June 30, 2023, Supor had no balance of borrowings. Supor's gross profits and shareholders' equities will not be
significantly affected by interest risk.
2. Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge
an obligation.
The monetary capital of Supor other than cash is mainly deposited in creditworthy financial institutions, and the entrusted financial
products are issued by creditworthy financial institutions. The management considers that there is not any significant credit risk and it
is not expected to create losses to Supor as a result of default by the counterparty.
The exposure of the maximum credit risk assumed by Supor is the book value of each financial asset in the balance sheet (including
derivative financial instruments). Except for the financial guarantee provided by Supor in Note XIV, Supor has not provided any other
guarantee that may expose Supor to credit risk. The exposure of the maximum credit risk assumed by the above financial guarantees
on the balance sheet date has been disclosed in Note XIV.
Supor's credit risk is primarily attributable to receivables. In order to control such risks, Supor has taken the following measures:
(1) Receivables financing and notes receivable
Receivables financing and notes receivable of Supor is mainly bank acceptance bill receivable. Supor conducts ongoing
monitoring on receivables, to avoid significant risks in bad debts.
(2) Accounts receivable
Supor only conducts business with credible and well-reputed third parties. According to Supor's policies, credit evaluations are
performed on all customers to determine the credit limit and terms applicable to the customers. In addition, Supor conducts ongoing
monitoring on accounts receivable, to avoid significant risks in bad debts.
(i) Continue to strengthen risk awareness, strengthen risk management of accounts receivable, and strengthen internal control of
customer credit policy management. Customer credit policy adjustments are required to pass the necessary approval procedures.
(ii) Keep detailed business records and accounting work. And use the records as important reference for future credit rating. Keep real
time updating on customers' information and learn their latest credit situation, in order to make suitable credit policies.
Supor's accounts receivable from related party SEB S.A. and its affiliates accounted for 61.84% of closing balance (December 31,
2022: 50.14%), and the Company's account receivables were expected to have less credit risk. As the Company's credit risks fa ll into
several business partners and customers, as of June 30, 2023, 21.52% (December 31, 2022: 26.43%) of the total accounts receivable
was due from the five largest customers of the Company after deducting receivables from related party SEB S.A. and its a ffiliates. The
Company has no significant central credit risk.
(3) Other receivables
Other receivables of Supor are mainly export rebate receivable and deposit as security receivable, etc. Supor performed colle ctive
management and ongoing monitoring on such receivables and related business to avoid significant risks in bad debts.
138
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(a) Analysis of amount of accounts receivable that is not past due and not impaired, the amount that is past due but not impa ired, and
the overdue aging of Supor is as follows:
Unit: RMB
Closing balance
Item Past due but not impaired
Neither past due nor
Total
impaired
Within 1 year 1-2 years Over 2 years
Notes receivable 20,847,819.64 20,847,819.64
Receivables financing 238,173,347.65 238,173,347.65
Other receivables 744,280.34 744,280.34
Subtotal 259,765,447.63 259,765,447.63
(Continued)
Beginning balance
Item Past due but not impaired
Neither past due nor
Total
impaired
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
(b) For individually accrued impairment receivables, please refer to related description on Note VII. "4. Accounts receivable " in the
notes to the financial statements.
3. Liquidity risk
Liquidity risk is the risk that Supor may encounter deficiency of funds in meeting obligations associated with cash or other
financial assets settlement. Liquidity risk is possibly attributable to failure in selling financial assets at fair value on a timely basis, or
failure in collecting liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, Supor optimizes the structure of assets and liabilities, and finally maintains a balance betwe en
financing sustainability and flexibility.
Financial instruments classified based on remaining time period till maturity
Unit: RMB
Closing balance
Item
Book value Within 1 year 1-3 years Over 3 years Total
Financial assets
Monetary capital 1,859,681,088.15 1,859,681,088.15 1,859,681,088.15
Transactional financial assets 250,129,103.13 250,129,103.13 250,129,103.13
Notes receivable 20,847,819.64 20,847,819.64 20,847,819.64
Accounts receivable 2,253,001,396.06 2,253,001,396.06 2,253,001,396.06
139
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Receivables financing 238,173,347.65 238,173,347.65 238,173,347.65
Other receivables 17,444,244.73 17,444,244.73 17,444,244.73
Other debt investment 1,103,225,054.80 312,025,000.00 849,875,000.00 1,161,900,000.00
Other current assets [Note] 220,760,000.00 220,760,000.00 220,760,000.00
Subtotal 5,963,262,054.16 5,172,061,999.36 849,875,000.00 6,021,936,999.36
Financial liabilities
Notes payable 1,395,862,500.00 1,395,862,500.00 1,395,862,500.00
Accounts payable 2,496,406,000.99 2,496,406,000.99 2,496,406,000.99
Other payables 139,535,730.90 139,535,730.90 139,535,730.90
Other current liabilities 16,967,274.33 16,967,274.33 16,967,274.33
Lease obligation 187,365,120.99 51,912,604.58 136,825,291.71 23,603,643.02 212,341,539.31
Subtotal 4,236,136,627.21 4,100,684,110.80 136,825,291.71 23,603,643.02 4,261,113,045.53
Note: Other current assets are term deposits for the purpose of obtaining benefits.
(Continued)
Beginning balance
Item
Book value Within 1 year 1-3 years Over 3 years Total
Financial assets
Monetary capital 3,563,140,907.75 3,563,140,907.75 3,563,140,907.75
Transactional financial assets 431,382,527.79 431,382,527.79 431,382,527.79
Notes receivable 27,325,952.95 27,325,952.95 27,325,952.95
Accounts receivable 1,926,518,118.38 1,926,518,118.38 1,926,518,118.38
Receivables financing 235,957,044.34 235,957,044.34 235,957,044.34
Other receivables 16,373,697.26 16,373,697.26 16,373,697.26
Other debt investment 1,056,952,424.68 33,150,000.00 1,101,237,500.00 1,134,387,500.00
Other current assets [Note] 381,101,095.89 381,101,095.89 381,101,095.89
Subtotal 7,638,751,769.04 6,614,949,344.36 1,101,237,500.00 7,716,186,844.36
Financial liabilities
Notes payable 1,057,611,900.00 1,057,611,900.00 1,057,611,900.00
Accounts payable 2,635,521,548.19 2,635,521,548.19 2,635,521,548.19
Other payables 137,729,222.63 137,729,222.63 137,729,222.63
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
140
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Note: Other current assets are term deposits for the purpose of obtaining benefits.
(II) Transfer of financial assets
Transferred but not wholly derecognized financial assets
For details, please refer to Note VII. "3. Notes receivable" and "25. Other current liabilities".
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
250,129,103.13 250,129,103.13
assets
(II) Other debt investments 1,103,225,054.80 1,103,225,054.80
(III) Receivables financing
(1) Notes receivable 238,173,347.65 238,173,347.65
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 June 30, there was not a significant difference between the book value and fair value of Supor's various financial asse ts and
financial liabilities.
141
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
XII. Related Parties and Related Transactions
1. Parent company
Place of Holding Voting right
Business
Parent company name registratio Registered capital proportion over the proportion over the
nature
n Company (%) Company (%)
Investment
SEB INTERNATIONALE S.A.S France EUR 830 million 82.64% 82.64%
company
Explanation on the parent company of Supor
Business scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operation
purpose), namely, purchase and subscription of shares, bonds, company shares and interest, various securities and marketable securities,
and transfer of such securities or notes, all financial operations related to equity participation, purchase, manufacturing a nd selling of
home appliances for the purpose of distribution and rendering of relevant services, all activities directly or indirectly contributing to
the realization of these operations, particularly in the areas of movable properties, real estate, finance, commerce and industry operation.
Supor's final controlling party is SEB S.A.
2. Company's subsidiaries
Please refer Note IX. "1. Equity in subsidiaries" for details on the Company's subsidiaries.
3. Joint ventures and associated enterprises of the Company
Please refer to Note IX. "2. Equity in joint ventures or associated enterprises" for details on the Company's significant joint ventures
and associates.
Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current period or
in preceding period but with balance in current period are as follows:
Name of joint venture or associated enterprise Relationships with the Company
Wuhan Anzai Cookware Co., Ltd. Associated enterprise
4. Other related parties of the Company
Related party Relationship between other related parties and the Company
SEB S.A. Final controlling shareholder
SEB ASIA LTD. Same controlling shareholder
TEFAL S.A.S. Same controlling shareholder with the controlling shareholder
S.A.S. SEB Same controlling shareholder with the controlling shareholder
SEB INTERNATIONAL SERVICE S.A.S. Same controlling shareholder with the controlling shareholder
LAGOSTINA S.P.A. Same controlling shareholder
GROUPE SEB MOULINEX Same controlling shareholder with the controlling shareholder
GROUPE SEB EXPORT Same controlling shareholder with the controlling shareholder
SEB DEVELOPPMENT SAS Same controlling shareholder with the controlling shareholder
142
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
IMUSA USA LLC Same controlling shareholder
Supor Group Co., Ltd. Company controlled by related natural person
ETHERA Same controlling shareholder with the controlling shareholder
SEB Professional (Shanghai) Co., Ltd. Same controlling shareholder
WMF GROUPE GMBH Same controlling shareholder
GROUPE SEB VIETNAM JOINT STOCK COMPANY Same controlling shareholder
GROUPE SEB THAILAND Same controlling shareholder
Emsa Taicang Co., Ltd. Same controlling shareholder
Wmf (heshan) Manufacturing Company Limited Same controlling shareholder
EMSA GMBH Same controlling shareholder
GROUPE SEB USA Same controlling shareholder
GROUPE SEB CANADA Same controlling shareholder
GROUPE SEB ANDEAN S.A. Same controlling shareholder
GROUPE SEB KOREA, LTD Same controlling shareholder
ROWENTA FRANCE Same controlling shareholder with the controlling shareholder
Saichuang (Zhejiang) Technology Co., Ltd. Same controlling shareholder
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. Company controlled by related natural person
5. Related transactions
(1) Related transactions in the purchase and sale of commodities, and provision and acceptance of labor
services
Purchase of commodities and receiving of services
Unit: RMB
Contents
Amount Transaction Exceeding Amount
of related
Related parties incurred during quota transaction incurred during
transactio
this period granted limit or not prior period
n
Finished
Wuhan Anzai Cookware Co., Ltd. 63,625,052.86 No 64,451,093.92
products
Accessori
Wuhan Anzai Cookware Co., Ltd. 25,626,690.95 No 42,746,852.61
es
Finished
GROUPE SEB EXPORT 1,151,986.78 No 4,569,624.34
products
Accessori
TEFAL S.A.S. 4,737,263.35 No 5,564,791.38
es
Finished
LAGOSTINA S.P.A. 393,590.48 No 2,194,942.00
products
Accessori
SEB INTERNATIONAL SERVICE S.A.S. 84,055.57 No 234,206.73
es
Finished
SEB INTERNATIONAL SERVICE S.A.S. 12,778.10 No
products
143
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Finished
SEB ASIA LTD. 43,294.99 No
products
Accessori
GROUPE SEB MOULINEX 1,080,900.02 No 1,839,097.62
es
Wmf (heshan) Manufacturing Company Finished
116,955.76 No 214,089.78
Limited products
Finished
GROUPE SEB THAILAND 182,892.82 No
products
Accessori
ETHERA No 319,583.04
es
Finished
WMF GROUPE GMBH 32,327,980.44 No 12,387,300.16
products
Finished
SEB Professional (Shanghai) Co., Ltd. 271.41 No
products
Finished
Supor Group Co., Ltd. No 7,471.00
products
Finished
Emsa Taicang Co., Ltd. 234,955.76 No
products
Finished
GROUPE SEB KOREA, LTD 72,887.77 No
products
Sale of commodities and rendering of services
Unit: RMB
Contents of
Amount incurred during Amount incurred
Related parties related
this period during prior period
transaction
SEB ASIA LTD. Finished products 2,317,968,141.55 2,599,590,781.21
SEB ASIA LTD. Accessories 5,444,308.05 2,648,083.19
S.A.S. SEB Finished products 7,134,221.91 10,143,181.26
S.A.S. SEB Accessories 239,073.76 495,400.35
TEFAL S.A.S. Finished products 1,295,914.74 5,771,600.06
TEFAL S.A.S. Accessories 9,354,844.69 7,810,501.26
GROUPE SEB MOULINEX Finished products 6,392,956.57 11,729,902.13
Supor Group Co., Ltd. Finished products 7,462,121.06 2,459,900.56
SEB INTERNATIONAL SERVICE S.A.S. Accessories 11,780,996.71 10,678,771.92
LAGOSTINA S.P.A. Finished products 0.00 49,269.52
LAGOSTINA S.P.A. Accessories 129,069.03 781,661.90
IMUSA USA LLC Finished products 5,162,890.46 9,872,683.87
IMUSA USA LLC Accessories 21,408.79 17,306.67
SEB Professional (Shanghai) Co., Ltd. Finished products 108,194.90 219,109.25
GROUPE SEB CANADA Finished products 4,669,945.78 8,281,052.82
GROUPE SEB VIETNAM JOINT STOCK COMPANY Finished products 4,822,561.94 12,712,078.20
GROUPE SEB VIETNAM JOINT STOCK COMPANY Accessories 0.00 11,067.77
GROUPE SEB ANDEAN S.A. Accessories 235,484.20 2,785,092.32
144
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Wuhan Anzai Cookware Co., Ltd. Accessories 15,018.14 11,947.34
Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. Finished products 778,100.88 216,700.00
(2) Related leases
The Company acts as the leasee:
Unit: RMB
Rent costs of short- Variable lease
term leases and low- payments not
Interest expense of
value asset leases included in the Increased right-of-
Rentals lease obligation
with simplified measurement of lease use asset
undertaken
Types of treatment (if obligation (if
Leaser Leasee leased applicable) applicable)
assets Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
incurred incurred incurred incurred incurred incurred incurred incurred incurred incurred
during during during during during during during during during during
this prior this prior this prior this prior this prior
period period period period period period period period period period
Shaoxi
435,031 69,393.
ng 0.00 0.00
Supor .66 51
Zhejian
g Supor 4,381,2 3,674,7 1,031,0 749,408 9,692,6
Electric 30.87 84.85 95.77 .06 01.95
al
Supor Wuhan
1,431,1 1,307,7 383,573 232,535 9,702,2
Group Cookw Real
Co., are Estate 72.80 53.94 .43 .11 66.81
Ltd. Shaoxi
ng
702,836 119,188 125,387
Supor
House .19 .97 .39
wares
P&R
68,114. 42,000. 2,280.8 4,387.8
Product
s 29 00 4 4
(3) Capital inter-bank lending of related parties
Unit: RMB
Related parties Borrowed/lent amount Start date Expiry date Notes
Borrowing
SEB S.A. 596,942.01 January 1, 2023 No fixed term Loans
Lending
(4) Key management's emoluments
Unit: RMB 10000
Item Amount incurred during this period Amount incurred during prior period
Key management’s emoluments 870.22 848.39
145
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Key management’s share-based payment
221.21 308.89
expense
(5) Other related transactions
① Water and electricity fee
Unit: RMB
Amount incurred during this Amount incurred during prior
Selling parties Purchasing parties
period period
Supor Group Co., Ltd. Zhejiang Supor Electrical 106,169.13
② Property management, maintenance and berth fees
Unit: RMB
Amount incurred during this Amount incurred during prior
Service renderer Purchasing parties
period period
Supor Group Co., Ltd. Zhejiang Supor Electrical 120,000.00
③ Consulting fee
Unit: RMB
Amount incurred during this Amount incurred during prior
Service renderer Purchasing parties
period period
The Company 448,824.00 448,824.00
Wuhan Supor Cookware 227,046.00 227,046.00
SEB ASIA LTD.
Shaoxing Supor 318,516.00 318,516.00
Zhejiang Supor Electrical 205,614.00 205,614.00
④ Cost of international shopping center
Unit: RMB
Amount incurred during this Amount incurred during prior
Service renderer Purchasing parties
period period
Shaoxing Supor 1,680,000.00
SEB DEVELOPPMENT SAS Zhejiang Supor Electrical 1,320,000.00
Wuhan Supor Cookware 834,070.74
⑤ Test service, etc.
Unit: RMB
Amount incurred during Amount incurred during
Service renderer Purchasing parties
this period prior period
The Company 62,842.64
Saichuang (Zhejiang) Technology Co., Ltd.
Zhejiang Supor Electrical 258,617.18 236,616.00
GROUPE SEB VIETNAM JOINT STOCK
AFS 1,587,735.40 1,586,131.90
COMPANY
Saichuang (Zhejiang) Technology
Shaoxing Supor 1,607,272.00 1,256,325.00
Co., Ltd.
146
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
⑥ Warehousing service
Unit: RMB
Amount incurred during this Amount incurred during prior
Service renderer Purchasing parties
period period
The Company 2,519,895.82
Wuhan Supor Cookware 986,402.20
SEB ASIA LTD.
Zhejiang Supor Electrical 351,667.60
Shaoxing Supor 1,764,063.02
⑦ Pursuant to the Technical License Contract entered into 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, Wuha n Supor
Cookware Co., Ltd. should pay S.A.S SEB technology use charges of RMB 359,408.34 (2022: RMB 526,305.07), and as of June 30,
2023, a balance of RMB 53,716.58 had not been paid (December 31, 2022: RMB 94,651.13).
⑧ Pursuant to the Trademark License entered into between Wuhan Supor Cookware Co., Ltd. and LAGOSTINA SPA. on
December 15, 2014, LAGOSTINA SPA licensed Wuhan Supor Cookware Co., Ltd. for compensated use of its trademark
"LAGOSTINA". According to related terms in the contract signed by both parties, use charges are accrued at 4% of revenue from sales
of products licensed. In the current period, Wuhan SUPOR should pay LAGOSTINA SPA. trademark use charges of RMB 1,592.95
(2022: RMB 43,093.45), and as of June 30, 2023, a balance of RMB 1,394,066.16 had not been paid (December 31, 2022: RMB
1,395,659.11).
⑨ Pursuant to the Trademark License entered into between Omegna and LAGOSTINA SPA. on December 5, 2016, LAGOSTINA
SPA licensed Omegna for compensated use of its trademark "LAGOSTINA". According to related terms in the contract signed by both
parties, use charges are accrued at 4% of revenue from sales of products licensed. In the current period, Omegna should pay
LAGOSTINA SPA. trademark use charges of RMB 13,475.46 (2022: RMB 66,105.73), and as of June 30, 2023, a balance of RMB
4,003,322.26 had not been paid (December 31, 2022: RMB 3,989,846.80).
⑩ 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 4,954.33 (2022: RMB 22,268.70)
to ETHERA in current period, which was calculated as per corresponding unit price of actual total sales. Until June 30, 2023, the
remaining RMB 1,827.49 had not been paid yet (December 31, 2022: RMB 4,424.04).
6. Receivables and payables by related parties
(1) Items receivable
Unit: RMB
Closing balance Opening balance
Items Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
SEB ASIA LTD. 1,417,903,520.86 49,626,623.23 977,231,667.49 34,203,108.36
receivable:
S.A.S. SEB 3,107,344.98 108,757.07 838,044.35 29,331.55
TEFAL S.A.S. 7,767,766.93 271,871.84 3,220,589.96 112,720.65
147
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
SEB INTERNATIONAL
8,241,163.49 288,440.72 3,296,335.17 115,371.73
SERVICE S.A.S.
GROUPE SEB MOULINEX 2,619,060.12 93,456.00 1,423,208.22 51,536.52
IMUSA USA LLC 3,617,079.47 126,597.78 3,605,881.82 126,205.86
Supor Group Co., Ltd. 13,250.00 662.50 11,010.00 550.50
SEB Professional (Shanghai)
343,090.37 12,008.16 152,845.67 5,349.60
Co., Ltd.
GROUPE SEB CANADA 2,584,201.13 90,447.04 1,896,331.22 66,371.59
GROUPE SEB VIETNAM
4,986,981.49 174,544.35 14,774,836.65 517,119.28
JOINT STOCK COMPANY
GROUPE SEB ANDEAN S.A. 240,060.44 8,402.12 112,622.53 3,941.79
Wuhan Anzai Cookware Co.,
16,500.00 825.00 16,500.00 825.00
Ltd.
LAGOSTINA S.P.A. 89,322.21 3,126.28 173,612.18 6,076.43
Saichuang (Zhejiang)
273,906.21 9,586.72 261,025.21 9,135.88
Technology Co., Ltd.
Total 1,451,803,247.70 50,815,348.81 1,007,014,510.47 35,247,644.74
Advance
Supor Group Co., Ltd. 171,428.57
payment:
EMSA GMBH 197.55
Total 197.55 171,428.57
Other
Supor Group Co., Ltd. 145,000.00 82,500.00 145,000.00 56,250.00
receivables:
Total 145,000.00 82,500.00 145,000.00 56,250.00
(2) Payables
Unit: RMB
Items Related parties Ending book balance Beginning book balance
Accounts payable: Wuhan Anzai Cookware Co., Ltd. 12,667,291.52 17,508,276.00
WMF GROUPE GMBH 13,731,050.03 6,861,332.34
GROUPE SEB EXPORT 1,156,718.79 1,836,117.60
TEFAL S.A.S. 3,751,584.73 2,376,975.15
S.A.S. SEB 56,359.76 94,651.13
LAGOSTINA S.P.A. 5,397,988.42 5,386,105.91
GROUPE SEB MOULINEX 827,599.27 131,149.87
GROUPE SEB THAILAND 61,695.15 43,382.55
SEB INTERNATIONAL SERVICE
4,038.28 114,692.08
S.A.S.
ETHERA 1,827.49 4,424.04
Saichuang (Zhejiang) Technology Co.,
265,000.00 578,673.08
Ltd.
148
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Supor Group Co., Ltd. 1,816,305.91
Wmf (heshan) Manufacturing Company
53,230.00
Limited
SEB Professional (Shanghai) Co., Ltd. 42,630.61
ROWENTA FRANCE 827,920.73
SEB ASIA LTD. 336,996.83
GROUPE SEB KOREA, LTD 46,641.34
Total 40,949,018.25 35,031,640.36
Contract liabilities: Supor Group Co., Ltd. 61,574.37 6,208,467.16
Zhejiang Nanyang Pharmaceutical Sales
304.42
Co., Ltd.
Total 61,878.80 6,208,467.16
Other payables: SEB S.A. 14,932,152.80 13,886,668.74
Wuhan Anzai Cookware Co., Ltd. 50,000.00 50,000.00
Total 14,982,152.80 13,936,668.74
Lease obligation: Supor Group Co., Ltd. 52,952,054.09 36,660,807.71
Total 52,952,054.09 36,660,807.71
XIII. Share-based Payment
1. Overall information
Applicable □ Not-applicable
Unit: RMB
Total equity instruments granted in current period 79,000.00
Total equity instruments exercised in current period 0.00
Total equity instruments expired in current period 75,750.00
The range of exercise price of stock options issued by the
2021 Equity Incentive Plan: RMB 1/share, 2.58 years
Company at the end of the period and the remaining period of
2022 Equity Incentive Plan: RMB 1/share, 3.37 years
the contract
Other remarks
Pursuant to the Proposal on 2021 Restricted Stock Incentive Plan (Draft) and its Abstract (hereinafter referred to as "2021 Equity
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 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.
Pursuant to the Proposal on 2022 Restricted Stock Incentive Plan (Draft) and its Abstract (hereinafter referred to as "2022 Equity
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 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.
149
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
According to the 18th Session of the Seventh Board of Directors held on January 31, 2023, the Company deliberated and approved
the Proposal on Grant of Postponed Portion of Restricted Stock to Incentive Objects, and the Company granted 79,000 shares at a price
of 1 per share on February 1, 2023.
The 2021 Equity Incentive Plan is valid for 4 years from the first grant date, 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 June 30, 2023,
the remaining period of the above incentive plan is 2.58 years.
The 2022 Equity Incentive Plan is valid for 4 years from the first grant date, 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 June 30, 2023,
the remaining period of the above incentive plan is 3.37 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 several Incentive Objects due to their resignation, the Company repurchased and canceled 24,000 shares
of Restricted Stock at the price of RMB 1 per share.
The 14th Session of the Seventh Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of Restricted
Stock. For disqualification of several Incentive Objects due to their resignation, the Company repurchased and canceled 53,000 shares
of Restricted Stock at the price of RMB 1 per share.
The 19th Session of the Seventh Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of Restricted
Stock. For disqualification of several Incentive Objects due to their resignation, the Company repurchased and canceled 22,750 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
According to the market price on the grant date
grant date
Based on the corresponding equity instruments of incentive
Determination method for the optimal estimate of the number of
targets, the performance of the Company and the forecast of
equity instruments expected to vest
future performance of the Company
The significant difference between this period estimate and last
None
period
Capital reserve accumulated due to equity-settled share-based
81,024,533.98
payment
Total expenses incurred due to equity-settled share-based
26,177,298.00
payment transactions
Other remarks
1. According to the 2021 Equity Incentive Plan deliberated and approved by the Company at the Third Interim General Meeting of
Shareholders 2021 held on December 30, 2021, the Company granted 1,209,500 shares repurchased in 2021 to incentive objects at a
grant price of RMB 1.00 per share on January 6, 2022. The above grant reduced treasury shares by RMB 76,159,897.25, the offset was
included into capital reserve-share capital premium of RMB 52,997,061.77, and the underwrite-down part was charged to the
undistributed profit at the beginning of the year by RMB 21,953,335.48. At the same time, the Company confirmed its stock repurchase
obligation and increased treasury shares by RMB 1,209,500.00.
150
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
According to the 2022 Equity Incentive Plan deliberated and approved by the First Interim General Meeting of Shareholders 2022 held
on September 21, 2022, the Company used its self-owned capital to repurchase 1,332,500 shares of the Company's shares in the form
of centralized competitive price transaction for the incentive plan, and increased treasury shares by RMB 69,398,019.65. On October
12, 2022, the Company granted 1,253,500 shares to incentive objects at a grant price of RMB 1.00 per share. The above grant reduced
the treasury shares by RMB 65,668,429.65 and offset the undistributed profit at the beginning of the year by RMB 64,414,929.65. At
the same time, the Company confirmed its stock repurchase obligation and increased treasury shares by RMB 1,253,500. 00.
On February 1, 2023, the Company granted 79,000 shares to incentive objects at a grant price of RMB 1.00 per share.
The above grant reduced treasury shares by RMB3,729,590.00 and offset the undistributed profit at the beginning of the year by RMB
3,650,590.00. At the same time, the Company confirmed its stock repurchase obligation and increased treasury shares by RMB
79,000.00.
2. The impact of 2021 Equity Incentive Plan on the capital reserve was RMB 40,084,396.00 at the beginning of the period, and with
an accrual of RMB 9,438,540.00 in the year, amounting to an accrued amount of RMB 49,522,936.00.
The impact of 2022 Equity Incentive Plan on the capital reserve was RMB 14,762,839.98 at the beginning of the period, and with an
accrual of RMB 16,738,758.00 in the year, amounting to an accrued amount of RMB 31,501,597.98.
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 were declared invalid by the Patent Reexamination Board of the State Intellectual Property Office, so the
litigation risk decreased. This case was settled yet. Based on the principle of conservatism, the Company still retained an e stimated
liability of RMB 5.15 million (December 31, 2022: RMB 5.15 million) on June 30, 2023. In 2020, export customers filed legal
proceedings against Shaoxing Household Electric Appliances Co., Ltd., a subsidiary, on the grounds of user disputes. This case was
settled yet. Based on the principle of conservatism, the Company still retained an estimated liability of RMB 4 million (December 31,
2022: RMB 4 million) on June 30, 2023. In 2021, export customers filed claims for product quality problems against Shaoxing Supor,
a subsidiary, on the grounds of user disputes, and one of the cases was settled in the current period, with the company bearing a cost
of RMB 461,272.50; due to the pending conclusion of another case, based on the principle of conservatism, the Company still retained
an estimated liability of RMB 1,538,727.50 (December 31, 2022: RMB 2 million) on June 30, 2023.
Contingent liabilities formed by financial guarantee and their financial impact
Supor signs tripartite acceptance agreements with distributors and banks, and Supor provides financing guarantee for the bank s
to issue bank acceptance bills to the distributors. In the event that Supor endorses and assigns an acceptance bill obtained by Supor,
and if the distributor fails to repay the difference between the security and the amount of the acceptance bill after the maturity of the
acceptance bill, Supor will bear part of the loss of the difference that the bank has not recovered from the distributor. As at June 30,
2023, the risk exposure undertaken by Supor was RMB 279,273,600.00 and the estimated liabilities accrued by the Company under
the financial guarantee contracts for the risk exposure amounted to RMB 1,396,368.00.
(2) A statement shall be given even if the Company has no significant contingencies to disclose.
The Company had no significant contingencies to disclose.
151
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
XV. Events after the Balance Sheet Date
1. Profit distribution situation
None
XVI. Other Important Matters
1. Segment information
(1) Determination basis and accounting policy of report segment
Supor establishes operating segment according to internal organizational structure, management requirement and internal report
system; determines report segment and disclose segment information based on Operating Segment.
Operating Segment refers to Supor's organization meeting following conditions: (1) The organization can yield income and cost
in daily activity; (2) Supor's management can appraise operating result of the organization regularly, so as to allocate resources on a
targeted basis and evaluate its performance; (3) Supor can obtain financial condition, operating result, cash flow and other relevant
accounting information of the organization. Two or more operating segments, which have similar economic characteristics and meet a
certain condition, can be combined into an operating segment.
The preparation of branch reports is conducted with the revenue of trans-branch transaction measured at the actual transaction
price. The accounting policy for branch report preparation is consistent with that used in Supor's financial statement.
Supor, with main product focused on cookware and SDA (small domestic appliances) in kitchen, establishes report segment based
on product and geographic segments and assets and liabilities shared by product segments is unable to be clearly distinguished.
(2) Financial information of reportable segments
Unit: RMB
Inter-segment
Item Cookware Electrical products Others Total
offsetting
Revenue from main
2,553,334,108.13 7,349,084,483.24 76,640,996.85 106,667,579.18 9,872,392,009.04
business
Cost of main
1,834,035,853.45 5,556,209,625.41 68,784,128.32 106,365,270.53 7,352,664,336.65
business
(3) Other explanations
② Geographic segment
Information on Supor's income from external transactions and non-current assets (excluding financial assets and deferred income
tax assets, the same below) by region is shown in the following table. Income from external transactions is divided according to the
location of customers who receive services or purchase products. Non-current assets are classified as per the physical location of the
assets (for fixed assets and construction in progress) or the location where they are allocated to related business (for intangible assets)
or the location of joint ventures and associated enterprises.
Item Domestic Foreign Inter-segment offsetting Total
Revenue from main
7,421,861,346.49 2,459,767,996.29 9,237,333.74 9,872,392,009.04
business
Cost of main
5,271,431,798.95 2,090,780,249.09 9,547,711.39 7,352,664,336.65
business
152
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Non-current assets 2,002,030,680.63 74,426,441.20 117,033,788.09 1,959,423,333.74
③ Major customers
Among Supor's customers, one customer (2022: 1) whose revenue from a single customer accounted for 10% or more of Supor's
total revenue was related party SEB S.A. and its affiliates, accounting for approximately 23.79% (2022: 25.21%) of Supor's total
revenue.
XVII. Notes to Items of Parent Company Financial Statements
1. Accounts receivable
(1) Details on categories
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories Provisio
Provision Book value Book value
Proportio Proportio n
Amount Amount proportio Amount Amount
n n proporti
n
on
Accounts
receivable for
452,696,56 439,220,534.5 385,536,35 374,598,742
provision for bad 100.00% 13,476,030.30 2.98% 100.00% 10,937,615.03 2.84%
4.86 6 7.78 .75
debts made on the
basis of portfolio
Including:
Portfolio 1: age 384,443,06 371,002,110.7 312,435,311 301,554,808
84.92% 13,440,953.14 3.50% 81.04% 10,880,503.86 3.48%
portfolio 3.90 6 .86 .00
Portfolio 2: low- 35,077,151. 57,111,169. 57,054,058.
7.75% 35,077.16 0.10% 35,042,074.27 14.81% 57,111.17 0.10%
risk portfolio 43 92 75
Portfolio 3: merged
33,176,349. 15,989,876. 15,989,876.
related parties 7.33% 0.00% 33,176,349.53 4.15%
53 00 00
portfolio
452,696,56 439,220,534.5 385,536,35 374,598,742
Total 100.00% 13,476,030.30 2.98% 100.00% 10,937,615.03 2.84%
4.86 6 7.78 .75
Provision for bad debts made on the basis of portfolio: 13,440,953.14
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year 384,443,063.90 13,440,953.14 3.50%
Total 384,443,063.90 13,440,953.14
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
153
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Unit: RMB
Ages Closing balance
Within 1 year (including 1 year) 452,696,564.86
Total 452,696,564.86
(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
Provision for bad debts
10,937,615.03 2,538,415.27 13,476,030.30
for accounts receivable
Total 10,937,615.03 2,538,415.27 13,476,030.30
(3) Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of accounts Proportion in the total closing balance Closing balance of
Entity name
receivable of accounts receivable provision for bad debts
SEB S.A. and its affiliates 383,074,859.53 84.62% 13,407,620.08
Customer P 22,780,709.43 5.03% 22,780.71
Wuhan Supor Cookware 19,047,459.66 4.21%
Supor Vietnam 12,080,685.90 2.67%
Customer Q 5,236,164.12 1.16% 5,236.16
Total 442,219,878.64 97.69%
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 757,789,870.82 1,174,381,191.82
Total 757,789,870.82 1,174,381,191.82
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
154
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Deposit as security 305,528.00 111,458.00
Fund pool 754,217,064.88 1,172,087,133.42
Temporary payment receivable 2,640,531.24 2,860,673.12
Personal deposit 1,703,986.84 339,400.93
Total 758,867,110.96 1,175,398,665.47
2) Provision for bad debts
Unit: RMB
Phase I Phase II Phase III
Expected credit loss in
Provision for bad debts Expected credit loss in the Total
Expected credit loss the entire duration
entire duration (credit
in future 12 months (without credit
impairment)
impairment)
Balance on January 1, 2023 1,017,473.65 1,017,473.65
Balance on January 1, 2023 in
the current period
Withdrawal in the current
59,766.49 59,766.49
period
Balance on June 30, 2023 1,077,240.14 1,077,240.14
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable Not-applicable
Disclosure by ages
Unit: RMB
Ages Closing balance
Within 1 year (including 1 year) 757,950,861.78
1-2 years 20,000.00
Over 3 years 896,249.18
Over 5 years 896,249.18
Total 758,867,110.96
3) Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Opening
Categories Collected or Closing balance
balance Accrued Written off Others
reversed
Provision for bad debts
1,017,473.65 59,766.49 1,077,240.14
of other receivables
Total 1,017,473.65 59,766.49 1,077,240.14
155
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
4) Other receivables details of the top 5 closing balances by debtors
Unit: RMB
Proportion in the Closing balance of
Entity name Nature of receivables Closing balance Ages total closing balance provision for bad
of other receivables debts
Within 1
Wuhan Supor Cookware Fund pool 330,672,603.95 43.57%
year
Hainan Supor E- Within 1
Fund pool 140,262,116.13 18.48%
commerce Company year
Zhejiang Supor Within 1
Fund pool 129,882,027.34 17.12%
Electrical year
Within 1
Omegna Fund pool 72,163,574.02 9.51%
year
Within 1
Shanghai WMF Fund pool 61,000,000.00 8.04%
year
Total 733,980,321.44 96.72%
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairme
Impairment
Book balance nt Book value Book balance Book value
provision
provision
Investment in
2,777,173,562.90 2,777,173,562.90 2,763,861,746.90 2,763,861,746.90
subsidiaries
Investments in associates
61,695,679.18 61,695,679.18 62,156,208.65 62,156,208.65
and joint ventures
Total 2,838,869,242.08 2,838,869,242.08 2,826,017,955.55 2,826,017,955.55
(1) Investments in subsidiaries
Unit: RMB
Increase/decrease Closing
Opening balance Closing balance balance of
Invested unit Investme Accrued
(Book value) Investment (Book value) impairmen
nt impairment Others
increased t provision
decreased provision
Wuhan Supor Pressure
240,428,244.41 240,428,244.41
Cooker
P&R Products 20,804,297.92 20,804,297.92
Yuhuan Sales
2,990,149.81 2,990,149.81
Company
Zhejiang Supor
777,383,633.79 4,242,660.00 781,626,293.79
Electrical
Shaoxing Supor 646,842,558.49 2,798,562.00 649,641,120.49
Supor Vietnam 105,143,165.64 105,143,165.64
Wuhan Recycling 1,000,000.00 1,000,000.00
156
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Omegna 10,000,000.00 10,000,000.00
Shanghai Marketing 5,000,000.00 5,000,000.00
Wuhan Supor
603,055,043.39 2,649,282.00 605,704,325.39
Cookware
SEADA 11,890,622.45 11,890,622.45
Shanghai WMF 50,206,659.00 8,622.00 50,215,281.00
Zhejiang WMF 102,179,399.00 1,326,468.00 103,505,867.00
Supor Large Kitchen
100,648,199.00 350,190.00 100,998,389.00
Appliance
Shaoxing Supor
54,519,526.00 455,088.00 54,974,614.00
Housewares
Supor Water Heater 31,200,000.00 31,200,000.00
Hainan Supor E-
570,248.00 1,480,944.00 2,051,192.00
commerce Company
2,777,173,562.
Total 2,763,861,746.90 13,311,816.00
90
(2) Investments in associates and joint ventures
Unit: RMB
Increase/decrease Clos
ing
Cash bala
Investment Adjustme Accrue nce
Opening dividend/
Investing Invest Invest profit or nt in Change d Closing balance of
balance profit
unit ment ment loss other s in impair Oth (Book value) impa
(Book value) declared
increa decre recognized comprehe other ment ers irme
for
sed ased by equity nsive equity provisio nt
distributi
method income n prov
on
ision
I. Joint Venture
II. Associated Enterprise
Wuhan
Anzai
62,156,208.65 -460,529.47 61,695,679.18
Cookware
Co., Ltd.
Subtotal 62,156,208.65 -460,529.47 61,695,679.18
Total 62,156,208.65 -460,529.47 61,695,679.18
4. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Revenue from main
1,168,704,643.55 981,805,496.52 1,100,175,925.03 1,008,919,142.74
business
157
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Revenue from other
25,634,866.85 23,569,024.43 18,296,531.96 16,109,933.67
operations
Total 1,194,339,510.40 1,005,374,520.95 1,118,472,456.99 1,025,029,076.41
Information related to revenue:
Unit: RMB
Contract classification Total
Commodity type
Including:
Cookware and utensil 1,168,553,304.46
Other domestic appliances 25,786,205.94
Classified by business area
Including:
Domestic 492,079,377.45
Export 702,260,132.95
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of this reporting period, the amount of revenue corresponding to the performance obligations that had been signed but had
not been performed or not yet completed is RMB 4,864,529.55, of which RMB 4,864,529.55 was expected to be recognized as incom e
in 2023 year.
5. Investment income
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Income from long-term equity investments under the equity
-460,529.47 -457,219.85
method
Investment income from disposal of transactional financial
2,620,258.47 1,534,044.99
assets
Interest from term deposit 5,852,397.27 28,822,530.29
Investment income of debt investment during the holding
3,828,273.98 3,552,197.12
period
Total 11,840,400.25 33,451,552.55
XVIII. Supplementary Information
1. Breakdown of non-recurring profit or loss in the current period
Applicable □ Not-applicable
Unit: RMB
Item Amount Notes
158
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
Profit and loss on disposal of non-current assets (including the write-off of provision for asset
-1,605,908.96
impairment)
Government subsidies included into the current profits and losses (except those that were
closely related to the Company's normal business operations, complied with national policies 5,811,842.88
and regulations and continuously available according to certain standard quota or quantity)
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 25,750,454.86
transactional financial assets, transactional financial liabilities and available-for-sale financial
assets
Other non-operating incomes or expenditures except for the foregoing items 53,535.90
Minus: influenced amount of income tax 6,778,516.96
Influenced amount of minority shareholders' equities 34,077.09
Total 23,197,330.63 --
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 did not have other specific circumstances of other items of profits and losses complying with the definition of non-
recurring profits or losses.
Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of the
Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□ Applicable Not-applicable
2. Return on net assets and earnings per share
Earnings per share:
Weighted average return Basic earnings per Diluted earnings
Profit of the reporting period
on net assets share per share
(RMB/share) (RMB/share)
Net profit attributable to shareholders of common shares 13.29% 1.097 1.095
Net profit attributable to shareholders of common shares
12.94% 1.068 1.066
after deducting non-recurring profit or loss
3. Financial Data Difference on Principle of Domestic and Oversea Accounting
(1) Net profit and net assets discrepancies in financial reports disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable Not-applicable
(2) Net profit and net assets discrepancies in financial reports disclosed separately under Overseas
Accounting Standards and Chinese Accounting Standards
□ Applicable Not-applicable
159
2023 Semiannual Report of Zhejiang Supor Co., Ltd.
(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
August 31, 2023
160
