Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Zhejiang Sanhua Intelligent Controls Co., Ltd.
2024 Semi-Annual Report
August 2024
1
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section I Important Notes, Contents and Definitions
The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior Management
of Zhejiang Sanhua Intelligent Controls Co., Ltd. (hereinafter referred to as the “Company”) hereby
guarantee that the information presented in this report shall be authentic, accurate, complete and free
from material misstatement whether due to false record, misleading statement or significant omission,
and they will bear both individual and joint legal liabilities.
Zhang Yabo, the Company's legal representative, Yu Yingkui, the person in charge of the
accounting work, and Li Zhimi, the person in charge of accounting department (Accounting Officer)
hereby declare and warrant that the financial statements in this report are authentic, accurate and
complete.
All directors attended the board meeting to review this report.
The forward-looking descriptions of future plans, development strategies and other forward-
looking statements contained in this report do not constitute substantial commitments by the
Company to investors, and investors are advised to be aware of the investment risks.
The Company describes in detail concerning the possible risks and countermeasures in Section
X "Risks and Countermeasures of the Company" under Section III "Management’s Discussion and
Analysis of Operations". Please pay particular attention to relevant contents.
The profit distribution proposal of the Company considered and approved by the Board of
Directors is as follows: on the basis of 3,731,414,614, the cash dividend of RMB1.00 (tax inclusive)
will be distributed to all shareholders for every 10 shares, 0 bonus shares will be given out (tax
inclusive), and there will be no transfer of capital to share capital from the provident fund.
Note: the Company’s share capital is 3,732,615,535 shares, the number of shares repurchased is
1,200,921 shares. In accordance with “the Company Law”, shares of the Company held by the listed
company through special account for share buyback shall not be entitled to participate in the
distribution of profits and capitalisation of capital reserve.
If the total share capital of the Company changes due to conversion of convertible bonds, share
repurchase, exercise of share incentives, listing of additional shares for refinancing, etc. prior to the
implementation of the distribution plan, the total amount of distribution will be adjusted accordingly
on the basis of the principle of unchanged distribution ratio.
2
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
CONTENTS
Section I Important Notes, Contents and Definitions .......................................................................... 2
Section II Corporate Profile and Key Financial Indicators .................................................................. 6
Section III Management’s Discussion and Analysis of Operations ................................................... 10
Section IV Corporate Governance ..................................................................................................... 30
Section V Environmental and Social Responsibility ......................................................................... 34
Section VI Significant Events ............................................................................................................ 40
Section VII Changes in Shares and Information about Shareholders ................................................ 66
Section VIII Information of Preferred Shares .................................................................................... 77
Section IX Bonds ............................................................................................................................... 78
Section X Financial Report ................................................................................................................ 79
3
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
List of Documents Available for Inspection
1. The 2024 Semi-Annual Report signed by the chairman of the board
2. The financial report signed and sealed by the Company's legal representative, chief finance officer and
person in charge of accounting department
3. The Company’s articles of association
4. Original copy of all the Company's documents and announcements published on the newspapers designated
by CSRC within the reporting period
5. Other documents available for inspection
4
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Definitions
Items Refers to Definition
The Company, Company Refers to Zhejiang Sanhua Intelligent Controls Co., Ltd.
The Articles of Association Refers to Articles of Association for Zhejiang Sanhua Intelligent Controls Co., Ltd.
The CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Zhejiang Securities Regulatory Zhejiang Securities Regulatory Bureau of China Securities Regulatory
Refers to
Bureau Commission
General Meeting Refers to General Meeting of Zhejiang Sanhua Intelligent Controls Co., Ltd.
The Board of Directors Refers to The Board of Directors of Zhejiang Sanhua Intelligent Controls Co., Ltd.
The Board of Supervisors Refers to The Board of Supervisors of Zhejiang Sanhua Intelligent Controls Co., Ltd.
Yuan Refers to RMB
5
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section II Corporate Profile and Key Financial Indicators
I. Corporate Information
Stock abbreviation Sanhua Intelligent Controls Stock code 002050
Former stock abbreviation (if
Sanhua Co.,
any)
Stock Exchange where the
shares of the Company are Shenzhen Stock Exchange
listed
Name of the Company in
浙江三花智能控制股份有限公司
Chinese
Abbr. of the Company name
三花智控
in Chinese (if any)
Name of the Company in
ZHEJIANG SANHUA INTELLIGENT CONTROLS CO., LTD.
English (if any)
Abbr. of the Company name
SANHUA
in English (if any)
Legal representative Zhang Yabo
II. Contacts and Contact Information
Board Secretary Securities Affairs Representative
Name Hu Kaicheng Wang Yutong
Office building in Sanhua Industrial Park, No. Office Building in Sanhua Industrial Park No.
Address 289 12th Baiyang Street, Qiantang New 219 Woxi Avenue, Chengtan Street,
District, Hangzhou, Zhejiang Xinchang, Shaoxing, Zhejiang
Tel. 0571-28020008 0575-86255360
Fax 0571-28876605 0575-86563888-8288
E-mail shc@zjshc.com shc@zjshc.com
III. Other Relevant Information
1. Company’s contact information
Whether there is any change in the Company’s registered address, office address, zip code, website or email
address during the reporting period.
□Applicable √Not applicable
During the reporting period, there were no changes in the Company's registered address, the address of the
Company's office and its postal code, the Company's website or e-mail address. Please refer to the 2023 Annual
6
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Report for details.
2. Information disclosure and place of the report
Whether there is any change in information disclosure and place of the report during the reporting period.
□Applicable √Not applicable
During the reporting period, there were no changes in the stock exchange website, media and website for disclosing
the semi-annual report, as well as the location of the Company's semi-annual report. Please refer to the 2023 Annual
Report for details.
3. Other relevant information
Whether other relevant information has changed during the reporting period
□Applicable √Not applicable
IV. Key Accounting Information and Financial Indicators
Whether the Company performed a retrospective adjustment or restatement of previous accounting data
□Yes √No
Corresponding Period of Last
Current Reporting Period YoY Change (%)
Year
Total Revenue (RMB) 13,676,072,161.08 12,528,920,625.59 9.16%
Net Profit Attributable to
Shareholders of the Listed 1,514,515,444.75 1,394,760,848.85 8.59%
Company (RMB)
Net Profit Attributable to
Shareholders of the Listed
Company after Deducting 1,526,827,093.52 1,467,390,266.69 4.05%
Non-recurring Gains and
Losses (RMB)
Net Cash Flow Generated
from Operational Activities 1,161,629,876.17 1,718,673,593.61 -32.41%
(RMB)
Basic Earnings per Share
0.40 0.39 2.56%
(RMB/Share)
Diluted Earnings per Share
0.40 0.39 2.56%
(RMB/Share)
Weighted Average ROE 8.32% 10.17% -1.85%
At the End of the Current
At the End of Last Year YoY Change (%)
Reporting Period
Total Assets (RMB) 33,100,790,488.42 31,890,584,773.41 3.79%
Net Assets Attributable to
Shareholders of the Listed 18,042,163,085.12 17,894,403,984.79 0.83%
Company (RMB)
7
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
V. Differences in Accounting Data between Domestic and Overseas Accounting Standards
1. Difference in net profits and net assets of this financial report between International Financial Reporting
Standards and China Accounting Standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between International Financial
Reporting Standards (IFRS) and China Accounting Standards in the reporting period.
2. Difference in net profits and net assets of this financial report between Overseas Accounting Standards
and China Accounting Standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between Overseas Accounting Standards
and China Accounting Standards in the reporting period.
VI. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Items Amount Note
Gains or Losses from Disposal of Non-
current Assets (Including the Write-off -6,146,341.57
for the Accrued Impairment of Assets)
Government grants recognised in the
current period's profit or loss (except for
government grants that are closely
related to the Company's normal business
51,359,679.62
operations, in line with national policies
and in accordance with defined criteria,
and have a continuing impact on the
Company's profit or loss)
In order to avoid raw material price risk
and prevent exchange rate risk, the
Company and its subsidiaries carried out
derivatives business, including futures
contracts and foreign exchange forward
contracts, etc. From January to June
2024, futures gained RMB 13.1419
Gains and losses from changes in fair
value of financial assets and liabilities million and forward loss was RMB
held by non-financial corporations and 76.0077 million, and from January to
gains and losses from the disposal of June 2023, futures gained RMB 4.3452
-62,865,867.03
financial assets and liabilities, except for million and forward loss was RMB
effective hedging operations related to 137.708 million. Therefore, the amount
the Company's normal business
of non-recurring profit and loss items in
operations
the first half of the two years generated
large fluctuations. Meanwhile, the
exchange gain from January to June
2024 was RMB42.0242 million, and the
exchange gain from January to June
2023 was RMB194.1929 million.
According to "Interpretative
8
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Announcement No. 1 on Information
Disclosure of Companies Issuing Public
Securities - Non-recurring Gains and
Losses", exchange gains and losses are
recurring profit and loss items, and
futures, forward gains and losses are
non-recurring profit and loss items.
Non-operating Revenue and
1,932,406.50
Expenditures Other Than the Above
Other Gains and Losses Items that Fit in
the Definition of Non-recurring Gains 1,520,214.66
and Losses
Less: Impact of Income Tax -3,260,821.02
Impact of Minority Equity (after
1,372,561.97
tax)
Total -12,311,648.77
Details of other gains and losses items that meet the definition of non-recurring gains and losses:
□Applicable √ Not applicable
The Company has no circumstances of other gains and losses items that meet the definition of non-recurring gains
and losses.
The reasons for the non-recurring gains and losses items defined or listed in the Explanatory Announcement No. 1
of Information Disclosure of Listed Companies – Non-recurring Gains and Losses are defined as recurring gains
and losses items.
□Applicable √ Not applicable
In the reporting period, the Company did not define any non-recurring gains and losses items, defined and listed in
the Explanatory Announcement No. 1 of Information Disclosure of Listed Companies – Non-recurring Gains and
Losses, as recurring gains and losses items.
9
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section III Management’s Discussion and Analysis of Operations
I. The Principal Business of the Company during the Reporting Period
1. Main business operations
The Company adheres to the "Dedication and Leadership, Innovation and Surpassing" business path, take the
research and application of heat pump technology and thermal management system products as the core, focuses on
the development of environmental thermal management solutions for heat and cold conversion and intelligent
temperature control, commits to specialized operations in the fields of building HVAC, electrical equipment and
thermal management of NEVs. According to the different stages and characteristics of strategic and mature business
development, the Company's business is mainly divided into refrigeration and air conditioning electrical
components business and automotive components business. Refrigeration and air conditioning electrical
components business is committed to building HVAC, electrical equipment specialized operation, the main products
include Four-way Reversing Valve, Electronic Expansion Valve, Solenoid Valve, Microchannel Heat Exchanger,
Omega Pumps, etc., which widely used in air conditioning, refrigerators, cold chain logistics, dishwashers and other
fields; Automotive components business focuses on in depth research in the field of automotive thermal
management, the main products include Thermal Expansion Valve, Electronic Expansion Valve, Electronic Water
Pump, New Energy Vehicle Thermal Management Integrated Modules, etc., widely used in both NEVs and ICVs.
There were no changes in the Company's principal business and business model during the reporting period.
2. Industry development
(1) Refrigeration and air conditioning electrical components industry
With the global trend of environmental protection and carbon reduction, the proposal of China's "dual carbon"
goals, and the improvement of intelligent refrigeration and air conditioning equipment and energy efficiency
standards, there is a new demand for the refrigeration and air conditioning electrical components industry around
the world, bringing new market space and value increment. As the leader in refrigeration and air conditioning control
components, the Company, with years of manufacturing experience, leading technology, and extensive and deep
cooperation with customers, will adapt to market changes, seize opportunities, and develop steadily.
(2) Automotive components industry
In recent years, the development of NEVs worldwide has continued to grow rapidly, becoming an unstoppable
trend. NEVs from different technical approaches have put forward new requirements for automotive thermal
management products, which are becoming more technology intensive and capital intensive. The Company has
been in the field
of automotive thermal management since its early years, with profound technical accumulation and widespread
customer recognition. It has entered subsystems and components from automotive thermal management components,
and has now become an important partner for customers such as BYD, Volvo, Geely, Valeo, Mahler, Volkswagen,
Mercedes Benz, BMW, Toyota, General Motors, Li Auto, NIO, etc.
3. Industry status
The Company is the world's largest manufacturer of refrigeration control components and the world's leading
10
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
manufacturer of automotive thermal management system control components. "Sanhua" refrigeration intelligent
control components have become a world-famous brand, and a strategic partner of many automobile enterprises and
air-conditioning refrigeration appliance manufacturers in the world. The Company takes improving energy
efficiency level of various end products as its responsibility, leading the global transformation of energy-saving and
environmental protection products. After more than 30 years of development, the Company has established a leading
position in the global market of refrigeration and automotive thermal management. The market share of the
Company's Electronic Expansion Valve, Four-way Reversing Valve, Solenoid Valve, Microchannel Heat
Exchanger, Automotive Electric Expansion Valve, Thermal Management Integrated Module for new energy vehicle,
Omega Pump ranks first globally. The market share of the Company's Service Valve, Automotive Thermal
Expansion Valve and Receiver Drier is in the leading position in the world.
II. Core Competitiveness Analysis
1. Clear strategic layout
The Company adheres to the "Dedication and Leadership, Innovation and Surpassing" business path, takes the
research and application of heat pump technology and thermal management system products as the core, firmly
grasps the development theme of energy conservation, environmental protection and intelligent control, upgrades
from "mechanical parts development" to "system control technology solution development of electronic control
integration". The Company’s products series are expanded from household A/C and refrigerator components to the
field of commercial A/C and commercial refrigeration, and extending to the direction of inverter control technology
and system integration and upgrading. Meanwhile, after the injection of automotive components business, it gives
full play to the synergy effect with the original business, continues to deepen the research and development of new
energy vehicle thermal management system components, and actively explores the deeper application of thermal
management components and subsystems in the automotive field, so as to provide global customers with
competitive environmental intelligent control solutions.
2. Technology leading, customer oriented
As a national high-tech enterprise, the Company has always adhered to the technological route of independent
development and innovation. For decades, it has focused on the field of intelligent control and vigorously cultivated
core technologies with independent intellectual property rights. It has been authorized with 3,966 patents both
domestic and abroad, including 1,975 invention patents. The Company has established a comprehensive multi-
disciplinary R&D team for product development and technical research, and established a matrix R&D
organizational structure. Utilizing the model of product development driven by technological research, we can
promote innovation. Meanwhile, a technical expert committee has been established to guide and manage
technological development. All products, services and quality of the Company take meeting the needs of customers
as the first priority.
3. Quality assurance, scale economy effect
The Company's products cover refrigeration A/C electrical components and automotive components industry. The
market share of the Company's Electronic Expansion Valve, Four-way Reversing Valve, Solenoid Valve,
Microchannel Heat Exchanger, Automotive Electric Expansion Valve, Thermal Management Integrated Module for
new energy vehicle, Omega Pump ranks first globally. The market share of Service Valve, Automotive Thermal
Expansion Valve and Receiver Drier is in the leading position in the world. The Company has established a complete
and strict quality assurance system, achieved ISO9001, IATF16949, QC080000 quality system certification. The
11
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Company won the National Quality Award, Zhejiang Quality Award, National Technological Innovation
Demonstration Enterprise and won the high comments from JCI, Daikin, Carrier, Midea, Gree, Haier, Toyota, Benz,
Volkswagen, Valeo and other well-known enterprises at home and abroad.
4. Advantages of global marketing network and production base
Since the 1990s, the Company has focused on expanding the international market, and has established overseas
subsidiaries in Japan, South Korea, Singapore, the United States, Mexico, Germany and other places to build a
global marketing network. At the same time, it has established overseas production bases in the United States,
Poland, Mexico, Vietnam, Thanland India and other places. And in practice, we have trained a number of
management talents who can meet the needs of business development in different countries and regions.
III. Main Business Analysis
Overview
In the first half of 2024, the world faced challenges such as high interest rates and geopolitical conflicts, but
economic growth stabilised, growth indicators in major economies such as the U.S. and Europe are picking up;
China's economy operated steadily, domestic demand continued to recover, and economic fundamentals were
positive in the long term. At the company level, refrigeration and air conditioning electrical components business
benefited from the consumer goods trade-in policy and global warming and other favourable support, the global
market share has been further consolidated and enhanced,and there is a steady growth in performance; Automotive
components business benefited from the trade-in subsidies, auto finance policy relaxation, etc., with the
development of the NEVs, the orders continue to release, empowering the performance of faster growth.
During the reporting period, the company achieved revenue of 13.676 billion yuan, up 9.16% year-on-year; net
profit attributable to shareholders of listed company 1.515 billion yuan, up 8.59% year-on-year. According to
products, the revenue of refrigeration and air conditioning electrical components business was RMB 8.279 billion,
up 7.43% year-on-year; the revenue of automotive components business was 5.397 billion yuan, up 11.91% year-
on-year.
1. Continuously update and expand the business layout with a view to improving the quality of the business
(1) Refrigeration and air conditioning electrical components business
In the first half of 2024, in addition to maintaining the market share of the leading products, the Company is
committed to increasing the market share of high technical requirements, iterative product, the new-generation
products and promoting the industrialisation of new products to create incremental business. In terms of customer
expansion, the company consolidates the orders of core customers while expanding the layout of new regional
customers. In terms of technology development, the company grows together with the market, to improve the quality
and strengthen the cost control, and increase R&D in less copper, copper-free products. In terms of patent
construction, the company focuses on key product patents, and takes patent protection as the backing of product
innovation. In terms of operation management, the company promotes the self-research of key manufacturing
equipment, lean production, digital transformation and other activities to reduce costs and increase efficiency. In
addition, the company continues to increase the globalisation of manufacturing, R&D layout and talent team
building in Vietnam, Mexico and Thailand factories to strengthen the company's global competitiveness.
(2) Automotive components business
The competition in the NEVs market has been intensifying, the company consolidates the market position through
new customer expansion, technology development, and refined operation to achieve the leadership of technology
12
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
and cost. In terms of customer development, the Company has increased the development of new projects and
business opportunities based on the demonstration effect of benchmark customers. In terms of technology
development, the company established the product power model to continuously improve product power, especially
in the promotion of intelligent, standardised and modular design of integrated components. In terms of operation
management, further promoted information technology, established the global cockpit for automotive components
business's operations, and conducted data management with visual reports. In terms of global layout, the Company
has continued to build plants in Mexico and Poland, and plants in Zhongshan, Shenyang, Tianjin, and Shaoxing
Binhai, China, as well as new production capacity, to implement the global supply map.
(3) Strategic Emerging Business
The development of artificial intelligence is rising, and the biomimetic robot industry is changing rapidly, which is
expected to become a revolutionary industry after computers, smartphones, and NEVs, with greater development
potential and wider application prospects. In the field of biomimetic robots, the company focuses on
electromechanical actuators, and cooperates with customers to carry out the full range of product research and
development, trial production, and iteration, and delivery of samples, and has been highly evaluated by customers.
In terms of energy storage, the company closely tracked the development trend of energy storage system technology,
focusing on the main models, recognizing by the head customers; focusing on the medium and long-term
development potential of the energy storage industry and the matching of the company's core technology, laying the
foundations for the subsequent development of technically superior products.
2. Sound corporate governance and incentivising core staff
The Company has implemented the 2024 Restricted Share Incentive Plan and the 2024 Stock Appreciation Right
Incentive Plan to encourage core talents to continuously improve their performance level and output and empower
the Company's performance growth. At the same time, the Company continued to strengthen and improve the
construction of internal control system, standardise the operation of the three meetings, and communicate with
investors through the Interactive Ease platform, investor call answering, on-site reception and other diversified ways.
3. Help Carbon Neutral, Establish Clean and Low Carbon Energy System
In terms of optimising energy structure, the company has accelerated the application of photovoltaic and energy
storage in the industrial park to reduce carbon emissions. In terms of low-carbon product design and development,
the company measures and evaluates the environmental impact of products at all stages of their life cycle, and
promotes the design of environmentally friendly products.
4. Proposed issuance of Global Depositary Receipts (GDRs) and listing on the Swiss Stock Exchange
In order to further promote the globalization strategy, the Company continue to promote the GDR project. The
raised funds are intended to expand the Company's global business map, strengthen the ability of the production
and manufacturing of refrigeration control components, new energy thermal management and robot
electromechanical actuator businesses, improve the Company's R&D investment and technological innovation, and
enhance the Company's intelligent manufacturing, digitization, and informatization level.
Changes in key financial data over the corresponding period of last year
Unit: RMB
Current Reporting Corresponding Period
YoY Change (%) Note of Change
Period of Last Year
13
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Mainly due to the
increase of the market
share of the
refrigeration and air-
conditioning control
components, the
Total Revenue 13,676,072,161.08 12,528,920,625.59 9.16%
development of
automotive
components industry,
to promote the solidly
development of the
company's sales.
Mainly due to the sales
Cost of sales 9,920,390,318.93 9,308,660,916.27 6.57% growth drives cost
increases
Selling Expenses 297,002,465.74 264,131,730.27 12.44%
Mainly due to the
increase in staff salary
Administrative
887,999,303.50 619,856,574.65 43.26% and intermediary
Expenses
service fees during the
period.
Mainly due to lower
Financial Expenses -51,781,709.55 -151,660,370.01 65.86% foreign exchange gains
during the period
Mainly due to higher
income tax expense as
Income Tax Expenses 332,296,145.99 263,470,197.45 26.12%
a result of higher
profits
R&D Investments 632,611,907.96 580,269,632.04 9.02%
Mainly due to the
Net Cash Flows from increase in staff salary
1,161,629,876.17 1,718,673,593.61 -32.41%
Operating Activities and cash paid for taxes
during the period.
Mainly due to the
receipt of 546 million
Net Cash Flows from yuan in compensation
-1,427,543,077.19 -990,771,136.32 -44.08%
Investment Activities for the land storage in
Xialiquan in the same
period last year.
Mainly due to the
increase in cash paid
Net Cash Flows from
-738,938,657.56 -877,206,246.29 15.76% for dividend
Financing Activities
distribution during the
period
Net Increase in Cash
-1,049,395,331.86 271,578.55
and Cash Equivalents
Whether there is significant change in Company’s profit structure or profit source during the reporting
period
□ Applicable √ Not applicable
There is no such case during the reporting period
14
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Revenue structure
Unit: RMB
Current Reporting Period Corresponding Period of Last Year
YoY Change (%)
Proportion to total Proportion to total
Amount Amount
revenue revenue
Total Revenue 13,676,072,161.08 100% 12,528,920,625.59 100% 9.16%
Classified by Industry
General
Equipment
13,676,072,161.08 100.00% 12,528,920,625.59 100.00% 9.16%
Manufacturing
Industry
Classified by Product
Refrigeration A/C
Electrical 8,278,700,304.27 60.53% 7,706,021,104.32 61.51% 7.43%
Components
Automotive
5,397,371,856.81 39.47% 4,822,899,521.27 38.49% 11.91%
Components
Classified by Region
Domestic Sales 7,826,338,533.84 57.23% 6,776,150,179.62 54.08% 15.50%
Overseas Sales 5,849,733,627.24 42.77% 5,752,770,445.97 45.92% 1.69%
Industries, products or regions accounting for more than 10% of the Company’s operating revenue or
operating profit
√ Applicable □ Not applicable
Unit: RMB
YoY Change
YoY Change YoY Change
Gross (%) of
Revenue Cost of sales (%) of Cost of (%) of gross
margin operating
sales margin
revenue
Classified by industry
General
Equipment
13,676,072,161.08 9,920,390,318.93 27.46% 9.16% 6.57% 1.76%
Manufacturing
Industry
Classified by product
Refrigeration
A/C Electrical 8,278,700,304.27 5,997,251,947.03 27.56% 7.43% 4.76% 1.85%
Components
Automotive
5,397,371,856.81 3,923,138,371.90 27.31% 11.91% 9.47% 1.62%
Components
15
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Classified by region
Domestic Sales 7,826,338,533.84 5,750,715,247.13 26.52% 15.50% 12.84% 1.73%
Overseas Sales 5,849,733,627.24 4,169,675,071.80 28.72% 1.69% -1.02% 1.95%
In the case that the Company's main business data statistics are adjusted during the reporting period, the
Company's main business data of the latest reporting period were adjusted according to the statistics at the
end of the last reporting period
□ Applicable √ Not applicable
IV. Non-Main Business Analysis
√Applicable □Not applicable
Unit: RMB
Amount Proportion to net profit Note of Change Sustainability
Floating gains/losses
on futures derivatives,
floating gains/losses on
Investment Income -11,680,068.63 -0.63% exchange rate No
derivatives, gains on
bank financial
products, etc.
Floating gains/losses
on exchange rate
derivatives, floating
Gains and Losses from
-43,077,568.28 -2.32% gains/losses on futures No
Change of Fair Value
derivatives, floating
gains/losses on bank
financial products, etc.
No requirement
payment, profit on
Non-operating compensation and
4,559,030.63 0.25% No
Revenue liquidated damages,
profit on retirement of
fixed assets, etc.
Fixed asset retirement
losses, compensation
Non-operating
8,527,704.42 0.46% and liquidated No
Expenditures
damages, donations,
etc.
Credit Impairment
-76,800,982.89 -4.14% Bad debt losses No
Loss
Loss on provision for
Assets Impairment inventory decline,
-44,434,103.33 -2.40% No
Loss impairment loss on
goodwill, etc.
Gains on Disposal of Gain on disposal of
-245,261.28 -0.01% No
Properties fixed assets
Government subsidies, "Employment of
VAT refund for persons with
"placement of disabled disabilities" VAT
Other Gains 128,552,012.14 6.93%
persons in refund, VAT refund for
employment", VAT software products in
refund for software excess of the tax
16
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
products in excess of burden, and VAT credit
the tax burden, VAT are sustainable, but the
credits, etc. rest are not sustainable
V. Analysis of Assets and Liabilities
1. Material changes of assets
Unit: RMB
At the End of Current Reporting
At the End of Last Year Note of
Period YoY Change
significant
Percentage of Percentage of (%)
Amount Amount change
total assets total assets
Cash and bank 5,222,883,432. 6,584,684,683.
15.78% 20.65% -4.87%
balance 16 93
Accounts 7,152,843,602. 5,773,991,481.
21.61% 18.11% 3.50%
receivable 65 22
4,509,575,295. 4,600,729,378.
Inventories 13.62% 14.43% -0.81%
73 19
Real estate held
7,588,431.93 0.02% 8,165,805.31 0.03% -0.01%
for investment
Long-term
equity 37,094,293.30 0.11% 37,924,431.29 0.12% -0.01%
investment
8,018,985,493. 7,730,363,778.
Fixed assets 24.23% 24.24% -0.01%
67 82
Construction in 2,746,629,632. 2,036,326,757.
8.30% 6.39% 1.91%
progress 47 72
Assets with
273,457,356.51 0.83% 313,254,745.53 0.98% -0.15%
right of use
Short-term 1,398,200,202. 1,212,150,378.
4.22% 3.80% 0.42%
borrowings 82 85
Contractual
62,714,790.24 0.19% 51,788,802.03 0.16% 0.03%
liabilities
Long-term 2,220,000,000. 1,030,801,111.1
6.71% 3.23% 3.48%
borrowings 00 3
Lease liabilities 198,342,644.46 0.60% 221,295,481.86 0.69% -0.09%
Notes 2,675,326,003. 2,476,839,413.
8.08% 7.77% 0.31%
receivable 36 89
3,520,145,951. 3,416,711,594.
Notes payable 10.63% 10.71% -0.08%
34 64
Accounts 5,033,866,555. 4,449,940,359.
15.21% 13.95% 1.26%
payable 98 81
Non-current
1,440,093,253.
liabilities due 292,569,239.45 0.88% 4.52% -3.64%
93
within one year
17
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
2. Main overseas assets
√Applicable □ Not applicable
Proportion
Whether
Control of overseas
Assets there is
Content of Operation measures to Income assets in
Formation Scale Location significant
Assets Mode ensure (RMB) net assets
(RMB) impairment
asset safety of the
risk
Company
R&D,
Sanhua Financial
manufactur
International monitoring,
Equity ing, sales
, Inc. (the 3,179,021,5 commissio 104,773,57
investmen The U.S. and No
U.S.) 85.48 ning of 3.44
t investment
(consolidate external
manageme
d) audits
nt
Sanhua Financial
Manufactur
International monitoring,
Equity ing, sales, -
Singapore 4,853,870,4 commissio
investmen Singapore investment 82,001,316. No
Pte Ltd 93.24 ning of
t manageme 76
(consolidate external
nt
d) audits
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Profit and
Cumulative
loss of fair Impairment
changes in Current Current
Opening value accrued in Other Closing
Items fair value purchase sale
balance change in the current changes balance
included in amount amount
the current period
equity
period
Financial Assets
1. Held-
for-trading
financial
assets 625,000,00 525,000,00 100,000,00
(Excluding 0.00 0.00 0.00
Derivative
Financial
Assets)
2.Derivativ -
22,636,112. 5,050,000.0 10,931,764.
e Financial 16,754,348.
68 0 44
Assets 24
Financial -
22,636,112. 625,000,00 525,000,00 5,050,000.0 110,931,76
Assets 16,754,348.
68 0.00 0.00 0 4.44
Subtotal 24
-
22,636,112. 625,000,00 525,000,00 5,050,000.0 110,931,76
Total 16,754,348.
68 0.00 0.00 0 4.44
24
-
Financial 14,219,110. 26,184,260. 36,903,370.
3,500,000.0
Liabilities 02 29 31
0
Other changes
1. Other changes in financial assets represent the purchase of options and the recognition of option expense of
5.05 million yuan.
2. Other changes in financial liabilities relate to the fulfillment of performance commitments by minority
18
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
shareholders of subsidiaries, amounting to 3.5 million yuan.
Whether there were any material changes on the measurement attributes of major assets of the Company
during the reporting period:
□ Yes √ No
4. Limitation of asset rights as of the end of reporting period
Items Book balance Book value Reason for restriction
Currency funds 50,256,461.32 50,256,461.32 Margin deposits
Notes receivable 1,866,025,559.72 1,862,419,818.56 Pledge financing
Electronic debt instruments that
have been transferred for
Accounts Receivable 62,493,748.40 59,369,060.98
payment or factored for financing
but not yet matured
Total 1,978,775,769.44 1,972,045,340.86
VI. Analysis of Investments
1. Overview
√Applicable □ Not applicable
Investment during the Reporting Period Investment over the Corresponding
Fluctuation Rate (%)
(RMB) Period of Last Year (RMB)
267,922,553.15 145,114,207.25 84.63%
2. Significant equity investment during the reporting period
□Applicable √Not applicable
3. Significant non-equity investment during the reporting period
□Applicable √ Not applicable
4. Financial asset investment
（1）Securities Investments
□ Applicable √ Not applicable
No securities investments during this reporting period.
19
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（2）Derivatives Investments
√Applicable □ Not applicable
1）Derivative investments for hedging purposes during the reporting period
√Applicable □ Not applicable
Unit: RMB in 10 thousand
Ratio of
closing
Gains and
Accumulated Purchase amount to
losses from Sales amount
Type of fair value amount the
Opening changes in during the Closing
derivatives changes during the company's
amount fair value in reporting amount
investment recognized in reporting net assets at
the current period
equity period the end of the
period
reporting
period
Futures
contracts,
foreign
exchange
contracts
Total
Accounting
policies and
specific
accounting
principles for
hedging
business
during the
reporting
period, as
well as No
explanations
on whether
there have
been
significant
changes
compared to
the previous
reporting
period
Explanation
of actual
gains and
losses during
the reporting
period
Explanation
of hedging
effectiveness
Capital
Own funds
source of
20
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
derivatives
investment
Risk analysis
and control
measures
(including
but not
limited to,
market risk,
In order to prevent raw material price risks and exchange rate risks, the Company and its subsidiaries conducted
liquidity risk,
derivative instruments business, including futures instruments and foreign exchange instruments. The Company
credit risk,
and its subsidiaries have strictly implemented the relevant provisions of the Measures for the Operation and
operational
Management of Futures Hedging Business and the Management System for Foreign Exchange Hedging Business.
risk, legal
risk, etc.) of
holding
derivatives
during the
reporting
period
Change of
market price
or fair value
of invested
derivatives
during the
reporting
period;
specific
methods,
related
assumptions
and
parameter
setting of the
derivatives’
fair value
analysis
should be
disclosed
Litigation (if
N/A
applicable)
2) Derivatives investments for speculative purposes during the reporting period
□ Applicable √ Not applicable
No derivative investments for speculative purposes during this reporting period.
21
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
5. Use of raised funds
√ Applicable □ Not applicable
（1） Overall use of raised funds
√ Applicable □ Not applicable
Unit: RMB in 10 thousand
Proporti
on of
Total accumul
Total amount Accumul ated
Raised
amount Accumul of raised ated amount Total
funds
Total Net of raised ated funds amount of raised amount Raised
has not
amount amount funds amount with use of raised funds of funds has
Year Method been
of raised of raised invested of raised alteratio funds with use unused not been
used for
funds funds in the funds n during with use alteratio raised used
two
report invested the alteratio n to the funds
years
period reporting n total
period amount
of raised
funds
Deposited
in the
Public 298,753. 11,542.5 230,218. special
2021 300,000 73,970.8
offering 1 8 31 account
for fund-
raising
298,753. 11,542.5 230,218.
Total -- 300,000 73,970.8 --
1 8 31
Description of Overall Usage of Raised Funds
(1) Actual amount of funds raised and time of fund arrival
Pursuant to the approval of the China Securities Regulatory Commission by way of Securities Regulatory Permit [2021] No. 168,
the Company made a public offering of 30 million convertible corporate bonds (the "Sanhua Convertible Bonds") with the nominal
value of RMB100 each and the total issuance amount of 3 billion yuan, raising the total of 3 billion yuan, and the net proceeds of
RMB2,987,531,008.41 after deduction of the issuance costs of RMB12,468,991.59 in 2021 June. The aforesaid arrival of the
proceeds has been verified by Tianjian Accounting Firm, which has issued the Verification Report (Tianjian Verification [2021] No.
277).
As one of the subjects for the implementation of the investment project is Zhejiang Sanhua Commercial Refrigeration
Co.(hereinafter referred to as Sanhua Commercial), the Company has allocated RMB1,487 million of the proceeds to Sanhua
Commercial by way of capital increase.
(2) Use and balance of issue proceeds
22
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Amount (Unit: RMB in 10
Items Index
thousand)
Net amount of funds raised in the current period A 298,753.10
Project investment B1 218,675.73
Accumulated amount as of the
beginning of the period
Net income from raised funds B2 5,123.08
Project investment C1 11,542.58
Amount incurred in this
reporting period
Net income from raised funds C2 312.92
Project investment D1=B1+C1 230,218.31
Accumulated amount by the
end of the period
Net income from raised funds D2=B2+C2 5,436.00
Calculated balance of raised funds E=A-D1+D2 73,970.80
Actual balance of raised funds F 73,970.80
Difference G=E-F 0.00
（2） Promised fund-raising projects
√ Applicable □ Not applicable
Unit: RMB in 10 thousand
Committ
Investme
ed
Accumul nt Whether
investme Total
Whether ative progress Whether feasibilit
nt committ Total Date of Benefits
project Investme investme at the expected y of
projects ed investme asset achieved
has been nt in the nt at the end of benefits project
and investme nt after ready for in the
(or current end of the have has
allocatio nt of alteratio intended current
partially) year the period been changed
n of raised n (1) use year
altered period (%) achieved significa
over- funds
(2) (3)=(2)/( ntly
raised
1)
funds
Committed investment projects
Construc
tion
project
of
commer
cial
refrigera
tion and
air
116,664. May 31,
conditio No 148,700 148,700 7,336.78 78.46% N/A No
93 2025
ning
intellige
nt
control
compone
nts with
an
annual
output of
23
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
65
million
sets
Technica
l
transfor
mation
project
of high-
efficienc
y and
energy-
saving
refrigera
tion and 32,279.9 May 31,
Yes 69,800 69,800 4,205.8 46.25% N/A No
air 8 2025
conditio
ning
control
compone
nts with
an
annual
output of
50.5
million
sets
Supplem
entary of
No 81,500 81,500 81,273.4 99.72% N/A No
working
capital
Subtotal
of
committ
11,542.5 230,218.
ed -- 300,000 300,000 -- -- -- --
8 31
investme
nt
projects
Ultra-purchase funds invested
No
11,542.5 230,218.
Total -- 300,000 300,000 -- -- -- --
8 31
（1）The "Annual Production Capacity of 50.5 Million Sets of Energy-Efficient Refrigeration and Air Conditioning
Circumst Control Components Technology Reform Project" is a technology reform and upgrading project, which is directly
ances implemented by the Company and included in the integrated management and unified accounting. The actual benefits
and of the investment project are not expected to be separately accounted for. According to the feasibility study report of the
reasons project, the project is expected to achieve sales revenue (including tax) of RMB1,980 million in a normal year after the
project reaches production, which will better enhance the operating results of the "energy-efficient refrigeration control
for not
components business".
reaching "Supplementary working capital" does not directly generate economic benefits and cannot be the subject of independent
the economic analyses, the estimated benefits have not been measured and the actual benefits cannot be separately
planned accounted.
progress
or (2)As approved by the Board of Directors of the Company on August 28, 2024, the date on which the "50.5 million sets
of high-efficiency energy-saving refrigeration and air-conditioning control components technical transformation
expected
project" will reach its intended state of use will be postponed from August 2024 to May 2025. Other elements of the
income project remaining unchanged. The specific reasons for the extension of the project are as follows: At present, the new
by production capacity of "50.5 million sets of high-efficiency energy-saving refrigeration and air-conditioning control
specific components technical transformation project" has been gradually released during the construction period, and the project
project construction work in progress has been gradually solidified. The Company combined with the existing product structure
and market trends, the fund-raising funds were adopt to prudent use of reasonable investment strategy. The Company
24
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
in some of the gold processing equipment, some parts of the equipment purchase, commissioning and other aspects of
the process has been delayed to a certain extent, so do not have the conditions for the completion of the project.
Considering the actual construction progress of the current project and the subsequent need to carry out equipment
debugging, commissioning and equipment acceptance work. For the principle of prudent investment, the Company will
extend the fund-raising project to reach the intended state of use date to May 2025.
Significa
nt
changes
in the No
feasibilit
y of
projects
Amount,
usage
and use
progress N/A
of over-
raised
Funds
Change
in
impleme
ntation
location
of
N/A
investme
nt
projects
of
Raised
Funds
Adjustm
ent to
impleme
ntation
method
of
N/A
investme
nt
projects
of
Raised
Funds
Advance
investme
nt and
substitut
ion of
In 2021, the Company substituted the initial investment amount of 179.3857 million yuan with raised funds
projects
invested
with
raised
funds
Tempora
ry N/A
supplem
25
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
ent of
working
capital
with idle
raised
funds
The
amount
and
reasons
of the
balance
N/A
of raised
funds in
the
project
impleme
ntation
Applicat
ions of
unused Deposited in the special account for raised funds and the subscription of large amount certificates of deposit.
raised
funds
Problem
s or
other
situation
s in the
N/A
use and
disclosur
e of
raised
funds
（3） Changes of raised funds
□ Applicable √ Not applicable
There was no change of raised funds in the reporting period.
VII. Disposal of Significant Assets and Equity
1. Disposal of significant assets
□ Applicable √ Not applicable
During the reporting period, there was no disposal of significant assets
2. Sale of significant equity
□ Applicable √ Not applicable
VIII. Analysis of Major Subsidiaries and Investees
√ Applicable □ Not applicable
26
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Information about major subsidiaries, and investees that contribute above 10% of the Company’s net profit
Unit：RMB
Company Company Principal Registered Operating Operating
Total assets Net assets Net profit
name type business capital revenue profit
Manufactur
Zhejiang
ing and
Sanhua
sales of
Commercia
refrigeratio
l 1,655.29 3,087,515,9 2,314,234,3 1,152,276,7 249,370,41 216,593,62
Subsidiary n and air
Refrigerati million 10.27 43.52 90.53 6.90 6.05
conditionin
on Co., Ltd
g electrical
(Consolidat
component
ed)
s
Sanhua Manufactur
(Hangzhou ing and
) Micro sales of
Channel refrigeratio
2,438,707,4 1,348,419,0 1,126,779,7 108,919,23 94,949,178.
Heat Subsidiary n and air 360 million
79.00 02.60 50.39 6.47 08
Exchanger conditionin
Co.,Ltd. g electrical
(Consolidat component
ed) s
Sales of
refrigeratio
Zhejiang
n and air - -
Sanhua 4,999,358,5 134,193,97 3,377,678,6
Subsidiary conditionin 50 million 50,683,366. 38,120,072.
Trading 13.39 2.48 76.80
g electrical 71 64
Co., Ltd.
component
s
Zhejiang
Sanhua Manufactur
Automotiv ing and
e 2,160 12,425,984, 6,909,005,8 5,397,371,8 832,039,39 672,670,42
Subsidiary sales of
Component million 003.84 75.31 56.81 1.74 7.81
s Co., Ltd automotive
(Consolidat parts
ed)
Manufactur
ing and
sales of
Sanhua refrigeratio
Internation n and air 37.55
al, Inc. 3,179,021,5 1,263,154,3 2,728,808,6 125,177,06 104,773,57
Subsidiary conditionin million
(USA) 85.48 23.73 73.34 2.09 3.44
(Consolidat g electrical USD
ed) component,
investment
manageme
nt
Manufactur
Sanhua ing and
Internation sales of
al refrigeratio 175.151245 - -
4,853,870,4 1,187,394,5 3,735,370,7
Singapore Subsidiary n and air 4 million 75,125,814. 82,001,316.
Pte. Ltd. 93.24 91.49 85.72
conditionin USD 01 76
(Consolidat g electrical
ed)
component,
investment
27
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
manageme
nt
Information about obtaining and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Methods of acquiring and disposing Impact on overall production, operation
Company name
subsidiaries during the reporting period and performance
Zhejiang Sanhua Intelligent Drive Co. New investment No significant impact
Zhejiang Shengtai Paper Co. New investment No significant impact
SANHUATROY PROPERTY
New investment No significant impact
MANAGEMENT,LLC
American Tubing International Leverage
Liquidation and cancellation No significant impact
Lender LLC
IX. Structural Entities Controlled by the Company
□ Applicable √ Not applicable
X. Risks and Countermeasures of the Company
(1) Risk of price fluctuation of raw materials
The raw materials needed by the Company are copper and aluminum, which account for a large proportion of the
cost composition of the products. Therefore, the fluctuation of the market price of raw materials will bring large
cost pressure to the Company. The Company will reduce the adverse impact of raw material price fluctuations
through the establishment of linkage pricing mechanism, hedging operation of commodity futures, timely
negotiation with customers and developing less copper and copper-free products to reduce the dependence on raw
materials with high price volatility.
(2) The risk of rising labor cost
The labor costs are rising year by year, which reduces the profit margin of the Company to a certain extent. In the
future, the Company will continue to improve the level of intelligent manufacturing by continuously promoting lean
production, process improvement and technical transformation.
(3) Exchange rate fluctuation risks
The Company's export volume is large, involving North America, Europe, Japan, Korea and Southeast Asia and
other regions. Due to the changes in regional trade policies, the Company's daily operation will be affected. The
Company deals with interregional trade risks through transferring production capacity to foreign countries. In
addition, the fluctuation of exchange rate will also have a certain impact on the profit. According to the actual
situation, the Company deals with and reduces this risk by means of forward foreign exchange settlement and
establishing overseas production bases in the United States, Poland, Mexico, Vietnam, Thailand, India and other
places.
28
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
XI. Implementation and enforcement of the "Double Enhancement for Quality and Returns"
action programme
The Company disclosed the announcement of the action programme of "Double Enhancement for Quality and
Returns".
□ Applicable √ Not applicable
29
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section IV Corporate Governance
I. Annual General Meeting and Extraordinary General Meetings Convened During the
Reporting Period
1. Annual General Meeting convened during the current reporting period
Proportion of
Meeting Nature participating Convened Date Disclosure Date Disclosure Index
investors
The announcement
of the resolution of
the first
extraordinary
general meeting of
First Extraordinary
Extraordinary shareholders in
General Meeting 17.37% May 6, 2024 May 7, 2024
General Meeting 2024 No. 2024-
in 2024
028 was published
in China Securities
Journal, Securities
Times and
CNINFO.
The announcement
of resolutions of
the 2023 annual
general meeting of
2023Annual Annual General shareholders
General Meeting Meeting of 60.96% May 20, 2024 May 21, 2024 (2024-038) was
of Shareholders Shareholders published in the
Securities Times,
Shanghai
Securities Journal
and CNINFO.
The announcement
on the resolution
of the second
extraordinary
Second general meeting of
Extraordinary Extraordinary shareholders in
62.34% June 20,2024 June 21, 2024
General Meeting General Meeting 2024 (2024-055)
in 2024 was published in
China Securities
Journal, Securities
Times and
CNINFO.
2. Extraordinary general meetings convened at the request of preferred shareholders with resumed voting
rights
□ Applicable √ Not applicable
30
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
II. Changes of directors, supervisors and senior management personnel
□ Applicable √ Not applicable
There were no changes in the Company's directors, supervisors, and senior management during the reporting
period. Please refer to the 2023 Annual Report for details
III. Profit distribution and conversion of capital reserve to share capital during the
reporting period
√Applicable □Not applicable
Bonus share issued per 10 shares (share) 0
Cash dividend per 10 shares (RMB) (tax inclusive) 1.00
Total capital share basis for the distribution proposal (share) 3,731,414,614
Total cash dividend (RMB) (tax inclusive) 373,141,461.40
Cash dividend amount in other ways (such as share repurchase)
0.00
(RMB)
Total cash dividends (including other ways) (RMB) 373,141,461.40
Distributable profits (RMB) 1,856,838,772.64
Percentage of cash dividends in the total distributed profit (%) 100%
Cash dividends
Other
Detailed description of profit distribution or capital reserves conversion plan
Based on provisional 3,731,414,614 shares of capital stock[note], cash dividend of RMB 1.00 (tax inclusive) will be distributed to
all shareholders for every 10 shares. The Company will not distribute bonus shares or convert capital reserves to share capital. A
total of RMB 373,141,461.40 will be distributed, and the Company's remaining undistributed profits are carried forward to the
next year.
Note: The share capital of the Company is 3,732,615,535 shares, of which the number of repurchased shares is 1,200,921.
According to the provisions of the Company Law, the shares held by the listed company through the repurchase account do not
enjoy the right to participate in profit distribution or the conversion of capital reserve into share capital
If the total share capital of the Company changes due to the conversion of convertible bonds, share repurchase, exercise of equity
incentive scheme, refinancing and listing of new shares before the implementation of the distribution plan, the total distribution
amount shall be adjusted accordingly based on the principle of unchanged distribution proportion.
31
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
IV. The Implementation of an Equity Incentive Plan, Employee Stock Incentive Plan, or
Other Incentive Plans
√Applicable □Not applicable
1. Equity incentive plan
1. In 2022, the Company launched the 2022 restricted stock incentive plan and share appreciation rights incentive
plan, granting 17.58 million shares of restricted stock to 1,366 incentive objects and 485,000 shares of share
appreciation rights were granted to 41 incentive objects. The granting date of this equity incentive plan is May 31,
2022, and the granting price is 10 yuan/share. The listing date of this restricted stock is June 30, 2022.
① On June 3, 2024, the Company held the twenty-third extraordinary meeting of the seventh session of the Board
of directors and the twentieth extraordinary meeting of the seventh session of the Board of Supervisors respectively
to consider and approve the ''Proposal on the Adjustment of the Repurchase Price of the Restricted Share Incentive
Plan for the Year 2022'', ''Proposal on the Achievement of the Conditions for the Release of the Restricted Shares
during the Second Release of Restricted Shares Period under the Restricted Share Incentive Plan for the Year 2022'',
''Proposal on the Cancellation of Particular Restricted Shares”, “The Resolution on the Adjustment of the Exercise
Price under the 2022 Stock Appreciation Right Incentive Plan” “The Resolution on the Accomplishment of the
Exercise Conditions for the Second Exercise Period under the 2022 Stock Appreciation Right Incentive Plan” and
“The Resolution on the Cancellation of Certain Stock Appreciation Rights”. The date of listing and circulation of
the shares released from restricted sale was July 1, 2024, 1,313 shareholders were released from restricted sale,
5.133 million shares could be released from restricted sale, accounting for 0.1375% of the Company's total share
capital at present; the Company plans to repurchase all or part of restricted shares held by 33 ineligibility incentive
recipients of the 2022 Restricted Stock Incentive Plan, with the total of 226,000 shares, the repurchase price of 9.40
yuan / share. The total number of incentive recipients eligible for the exercise of stock appreciation rights was 37,
and the number of feasible options was 135,000 shares; the Company cancelled all or part of the stock appreciation
rights held by 2 incentive recipients who were ineligible under the 2022 Stock Appreciation Rights Incentive Plan,
totalling 8500 shares.
② On June 20, 2024, the Company held the Second Extraordinary General Meeting of 2024 to consider and approve
the “Proposal on Cancellation of Certain Restricted Shares”. The Company plans to repurchase and cancel all or
part of the restricted shares held by 33 ineligible incentive recipients under the 2022 Restricted stock incentive plan,
totalling 226,000 shares, with the repurchase price of 9.40 yuan/share.
2. In 2024, the Company launched the 2024 restricted stock incentive plan and stock appreciation right incentive
plan, granting 24.91 million restricted shares to 1,933 incentive objects and 560,000 stock appreciation rights to 47
incentive objects. The granting dates of the share incentive plan are May 13, 2024 and June 3, 2024, and the granting
price is 11.75 yuan/share. The listing date of the restricted shares is June 20, 2024.
2. Employee stock ownership plan
□ Applicable √ Not applicable
32
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
3. Other employee incentive schemes
□ Applicable √ Not applicable
33
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section V Environmental and Social Responsibility
I. Significant environmental issues
Whether the Company or the Company’s subsidiaries are critical pollutant enterprises disclosed by National
Environmental Protection Department
√Yes □No
Environmental protection related policies and industry standards
During the reporting period, the Company strictly adhered to national environmental protection related laws and
regulations in its daily production and operation, such as the Environmental Protection Law, the Air Pollution
Prevention and Control Law, the Water Pollution Prevention and Control Law, the Solid Waste Pollution
Environmental Prevention and Control Law, the Environmental Noise Pollution Prevention and Control Law, the
Soil Pollution Prevention and Control Law, the Environmental Impact Assessment Law, etc. The Company strictly
implements national environmental protection related industry standards, such as the Electroplating Pollutant
Discharge Standard (GB2190-2008), Comprehensive Air Pollutant Discharge Standard (GB16297-1996),
Comprehensive Wastewater Discharge Standard (GB8978-1996), Emission Standard for Air Pollutants from Boilers
(GB13271-2014), Emission Standard for Pollutants in the Synthetic Resin Industry (GB31572-2015), Unorganized
Emission Control Standard for volatile organic compounds (GB37822-2019), the Electroplating Water Pollutant
Discharge Standard (DB33/2260-2020) in Zhejiang Province and Indirect Emission Limits of Nitrogen and
Phosphorus Pollutants in Industrial Enterprise Wastewater (DB33/887-2013), and Emission Standard for
Environmental Noise at the Boundary of Industrial Enterprises (GB 12348-2008).
Administrative permits for environmental protection
Since 2010, the Company has invested in the construction of Meizhu Sanhua Industrial Estate in Xinchang County,
and has obtained 25 EIA permits. All the projects have passed. In October 2023, the Company has completed the
re-issuance of the national emission permit.
Industry emission standards and specific situations of pollutant emissions involved in production and business
activities
Main Name of
pollutant main
Name of
s and pollutant Distribut Emissio Emissio
Compan Number Total Approve Over
types of s and Emissio ion of n n
y or of emission d total standard
character character n mode emission concentr standard
subsidiar outlets s emission emission
istic istic outlets ation s
y
pollutant pollutant
s s
The
Zhejiang limitatio
Sanhua n of Not
Intellige Waste Sewer ②500mg COD in 62.386 T exceedin
COD 1 North 23.14T
nt water system /L GB8978 /year g the
Controls -1996 standard
Co., Ltd. Integrate
d
34
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Wastewa
ter
Emissio
n
Standard
is
500mg /
L
The
limitatio
n listed
in
DB33/8
87-2013
Indirect
Zhejiang Emissio
Sanhua n Limits
Not
Intellige Ammoni of
Waste Sewer ②35mg/ 6.262 T exceedin
nt a 1 North Nitrogen 2.31T
water system L /year g the
Controls Nitrogen and
standard
Co., Ltd Phospho
rus
Pollutan
ts from
Industri
al
Wastewa
ter is
35mg / L
The
limitatio
n listed
in
GB1327
Zhejiang 1-2014
Sanhua Emissio Not
Intellige Waste Direct ②50mg/ n 2.15 T exceedin
SO2 1 North 0.11T
nt gas emission m3 Standard /year g the
Controls of Air standard
Co., Ltd Pollutant
s for
Boilers
is
50mg/m
3
Accordi
ng to the
low
Zhejiang Nitrogen
Sanhua emission Not
Intellige Waste Nitrogen Direct ②50mg/ requirem 10.06 T exceedin
1 North 0.46T
nt gas Oxide emission m3 ents of /year g the
Controls local standard
Co., Ltd governm
ent, the
limitatio
n of gas-
35
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
fired
boiler is
50mg /
m3
Treatment of pollutants
Adhering to the advanced management concept, the Company takes "developing energy-saving and low-carbon
economy, creating a green quality environment" as its own responsibility, constantly surpasses, and becomes an
important creator and contributor of human green quality living environment with limited resources and unlimited
wisdom.
1. Waste water treatment: The Company responded to the construction of "five water treatment", "eliminating
inferior V-type water" and "zero direct discharge of sewage" in the whole province. The Company renovated
the rainwater and sewage outlets in the factory area, implemented the separation of rainwater and sewage, and
installed cut-off valves and video monitoring equipment at the Company's rainwater discharge outlets, and
collected and treated the early rainwater. There are two wastewater treatment stations in the factory. The sewage
treatment stations have been equipped with standardized sewage outlets and set up discharge outlet signs.
Online monitoring device, solenoid valve flowmeter and card swiping sewage system are installed at the
discharge outlet, which has been connected with the environmental protection department. The monitoring
indicators include pH, COD, total copper, total zinc, total chromium, total nickel and flow. Wastewater treatment:
The Company has entrusted a third-party professional treatment unit for treatment. The discharge indicators of
the Company's internal control wastewater are stricter than the environmental discharge standard. The final
treated wastewater is discharged into the sewage collection pipe network of the industrial zone and sent to
Shengxin sewage treatment plant for retreatment.
2. Waste gas treatment: The Company has acid pickling, electroplating waste gas, welding dust and other waste
gas. All kinds of waste gas discharge cylinders are equipped with corresponding waste gas treatment devices.
The acid pickling and electroplating waste gas absorption and treatment tower is installed with automatic dosing
system, and the waste gas is discharged to air after treatment. At the same time, in order to win the blue-sky
defense activity, the Company carried out low Nitrogen emission transformation of the Company's gas boilers
in accordance with the requirements of relevant official departments in 2019. In 2021, the transformation and
upgrading of VOCs treatment facilities in industrial enterprises have been implemented. At the same time, the
process has been improved, and the water cleaning is used to replace the organic solvent cleaning, so as to
reduce the generation of VOCs. In 2022, the Company carried out an upgrade and transformation of diesel
powered mobile source emissions, upgrading from the original National II emission standard to National IV,
greatly reducing particulate matter emissions. In 2023, the Company passed the B-level acceptance of air
pollution prevention and control performance of key industry enterprises in Zhejiang Province.
3. Solid waste and soil treatment(surface water): All kinds of hazardous waste of the Company are entrusted to
the third qualified party for disposal, the general solid waste with utilization value is recycled, the domestic
waste is cleared and transported by the environmental sanitation station, and the construction waste is cleaned
and transported by the construction unit. In July 2020, the Company became one of the first "waste free
factories" in Shaoxing. The Company commissioned a third-party testing agency to conduct soil and
36
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
groundwater testing in 2022, and no contamination was found. In 2023, the Company was no longer on the list
of key soil pollution monitoring units.
4. Noise control: The Company's existing main noise is workshop production noise, air compressor room, waste
gas and waste water treatment equipment noise. Equipment layout is reasonable, and trees are planted around
the workshop. Noise at factory meets the standard.
5. The "three wastes" pollution control facilities of the Company are in normal and stable operation. The pollutants
are discharged based on the standard, and there is no environmental pollution event.
Emergency Response Plan
Zhejiang Sanhua Intelligent Controls Co., Ltd. re-prepared the Emergency Response Plan in August 2023, and filed
with Xinchang Environmental Protection Bureau on August 30, 2023 (Record No. 330624-2023-40-M).
Investment in environmental governance and protection, and payment of environmental protection taxes
During the reporting period, the Company's environmental governance investment and payment of environmental
protection tax amounted to 18.033 million yuan.
Environmental self-monitoring program
The Company formulated Self-monitoring Scheme of Zhejiang Sanhua Intelligent Control Co., Ltd. according to the
requirements of the superior environmental protection department, combined with the actual production situation
and the actual needs of environmental management of the Company. The sewage station of the Company is equipped
with a laboratory, and the detection is conducted by a specially assigned person. On line automatic monitoring
equipment such as pH, COD, TOC, total copper, total zinc, total chromium, total nickel, flow rate, etc. are installed
at the Company's total wastewater discharge outlet, so as to achieve the combination of automatic monitoring and
manual testing. For the pollution factors such as suspended matters, total Phosphorus, Ammonia Nitrogen, total Iron
and Petroleum, the Company entrusts a third-party testing agency to carry out regular monitoring according to self-
monitoring requirements for national effluent licence. The monitoring results are published regularly on the
enterprise self-monitoring information disclosure platform of Zhejiang Province.
Administrative penalties for environmental problems during the reporting period
Not applicable
Other environmental information that should be disclosed
Not applicable
Measures and effects in reducing carbon emissions during the reporting period
√ Applicable □ Not applicable
There are direct greenhouse gas emissions from the use of natural gas, gasoline, and diesel fuel, as well as indirect
greenhouse gas emissions from purchased electricity in the Company's production and operations. In this regard,
the Company is committed to energy saving and emission reduction practices, as well as continues to innovate green
product technologies to ensure effective use of resources and improve operational efficiency. As of the end of the
reporting period, the Company had prepared and issued the Energy Management Measures, Gas and Liquid
37
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Management Measures, Compressed Air Use Inspection and Reward & Penalty Management Regulations, Trial
Management Measures for Compressed Air Cost Reduction and Water Conservation System, and other management
systems relating to resource conservation. By regularly checking usage, we aim to minimize the consumption of
water, electricity, fuel, and other resources, and actively assist society in energy conservation and emission reduction
while optimizing our own energy resource costs. At the same time, the Company has always adhered to the business
philosophy of energy saving and environmental protection, constantly innovating products and technologies, and is
committed to promoting the green and low-carbon development of the industry.
1. Low-carbon design and R&D: The Company takes the initiative to incorporate the concept of ecological and
environmental protection into the process of product development, design and production, etc. Adhering to the
concept of sustainable development, the Company starts from the various stages of the life cycle of the product, and
measures and evaluates the impact of the product on the environment during the life cycle.
2. Optimize the energy structure: Large-scale use of distributed photovoltaics in the park to replace the original
purchased electricity and increase the purchase of green electricity. Achieving cleaner energy and using waste heat
recovery technology to achieve lower energy consumption and higher resource utilisation efficiency; On the other
hand, the energy storage system in the production park can comprehensively take advantage of peak and valley
electricity, which improves the efficiency of distributed photovoltaic utilization.
3. Accurate control of energy efficiency: The Company continues to promote the application of smart energy IOT
platform, and effectively controls the use efficiency of all energy within the scope through real-time display of
digital information, traceability, technical transformation and energy conservation and consumption reduction
analysis.
4. Promote green technology: The Company reduces energy consumption and improves energy efficiency through
the improvement of manufacturing and technological process. Reduce energy consumption and carbon emission by
troubleshooting of air leakage point of compressed air pipeline of equipment, upgrading and transformation of air
compressor, emission reduction of triple supply and nitrogen recycling.
5. Enhancing green cooperation: through the conversion of purchased liquid oxygen and liquid nitrogen to in-house
production, in-house oxygen and nitrogen could be used directly in production, avoiding the liquefaction of oxygen
and nitrogen by suppliers for large-volume shipments, and reducing the large amount of energy consumption for
liquefaction of gaseous state, thus reducing the impact on the climate.
6. Complete green products: the Company develops a series of low-carbon key core components, such as electronic
expansion valves, inverter controllers, micro-channel products, significantly reducing carbon emissions from the
use of end-products, to promote the industry's green and low-carbon development.
7. Green Packaging: The company is committed to reducing the environmental impact of packaging materials by
optimising the packaging process, adopting green packaging materials and implementing recycling plans for
packaging products, and planning transportation scientifically to less environmental impact and promote the saving
and recycling of packaging materials.
38
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
8. Production layout: Sanhua adheres to the concept of "wherever customers are, Sanhua is there" By setting up
factories nearby, we not only serve customers but also reduce carbon emissions in transportation. We have
established production bases in Mexico, Poland, Vietnam, India, Hangzhou, Wuhu, Zhongshan, and other areas.
At the same time, as a leading global manufacturer of thermal management system control components for new
energy vehicles, the Company fully grasps the business opportunities brought by the development of the global
new energy vehicle industry, actively explores green and efficient refrigeration technology, and continues to bring
professional and green product solutions to the industry.
Other environmental information
Not applicable
II. Social responsibility
The Company is committed to actively fulfilling the social responsibility, as well as promoting social harmony
and sustainable development through public welfare and charity programmes. The Company contributes to the
society by visiting the elderly in nursing homes, pairing up to help the needy in the community, doing donations,
etc. The Company also provides assistance and condolences to the employees in difficulty through the "Sanhua One
Family" Fund, which has set a good example for social responsibility. During the reporting period, donations were
made to the Shangyu Charity Federation to help the disadvantaged groups.
39
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section VI Significant Events
I. Complete and Incomplete Commitments of the Company and Its Actual Controller,
Shareholders, Related parties, Acquirers, and Other Related Parties by the End of the
Reporting Period
√ Applicable □ Not applicable
Commitment Details of Date of Term of
Commitments Nature Performance
party commitments commitments commitments
When the
number of
shares sold
through listing
and trading in
Shenzhen Stock
Exchange
Zhang Yabo,
Commitment reaches 1% of
controlling Until the
from Other the total number November 21st, Strict
shareholder commitment is
reformation of commitment of shares of the 2005 performance
Sanhua Holding fulfilled
shareholding Company, it
Group Co., Ltd.
shall make an
announcement
within two
working days
from the date of
the occurrence
of the fact.
Zhang Daocai
and Sanhua
holding group,
the controlling
shareholder of
Commitment
the Company,
Zhang Daocai, on horizontal
promise that
controlling competition,
there will not be January 5th, Strict
shareholder related party Long term
any competition 2009 performance
Sanhua Holding transactions and
with Sanhua
Group Co., Ltd. capital
intelligent
occupation
Commitments controls in the
from assets business scope
reorganization being or already
carried out in
the future.
Sanhua Holding
Commitment Group
Zhang Daocai, on horizontal promises: after
controlling competition, the completion
January 5th, Strict
shareholder related party of this Long term
2009 performance
Sanhua Holding transactions and transaction,
Group Co., Ltd. capital Sanhua Holding
occupation Group and
Sanhua
40
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
intelligent
controls will
sign an
agreement
according to
law, perform
legal
procedures,
fulfill the
obligation of
information
disclosure and
handle
significant
matters for
approval in
accordance
with relevant
laws,
regulations, and
articles of
association of
Sanhua
intelligent
controls. In the
process of
implementation
of related party
transactions, we
will follow the
principle of
legality and
reasonableness,
ensure the
fairness of
prices and
procedures, and
make certain
that the
legitimate
interests of
Sanhua
intelligent
controls and
other
shareholders
will not be
damaged
through related
party
transactions.
Zhang Daocai, Commitment In order to
Zhang Yabo, on horizontal avoid
horizontal
Zhang Shaobo, competition, Strict
competition July 24th, 2015 Long term
controlling related party with Sanhua performance
shareholder transactions and intelligent
Sanhua Holding capital controls, Zhang
41
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Group Co., occupation Daocai, Zhang
Ltd., Zhejiang Yabo, Zhang
Shaobo, Sanhua
Sanhua Lvneng
Holding Group
Industrial the controlling
Group Co., Ltd. shareholder of
the Company,
and Sanhua
Lvneng
Industry, the
trading partner
made the
following
commitments:
1. I (or the
Company) will
not directly or
indirectly
engage in or
participate in
the business
that constitutes
potential direct
or indirect
competition
with Sanhua
Intelligent
Controls and its
subordinate
enterprises;
guarantee that
legal and
effective
measures shall
be taken to urge
other
enterprises
controlled by
me (or the
Company) not
to engage in or
participate in
any business
competing with
Sanhua
Intelligent
Controls and its
subordinate
enterprises.
2. If Sanhua
Intelligent
Controls further
expands its
business scope,
I (or the
Company) and
other controlled
enterprises will
not compete
with Sanhua
Intelligent
Controls'
expanded
business; if it is
possible to
compete with
Sanhua
42
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Intelligent
Controls'
business after
expansion, I (or
the Company)
and other
controlled
enterprises will
withdraw from
Sanhua
Intelligent
Controls in the
following ways
of competition:
A. Stop the
businesses that
compete or may
compete with
Sanhua
Intelligent
Controls; B.
Inject the
competitive
business into
Sanhua
Intelligent
Controls; C.
Transfer the
competitive
business to an
unrelated third
party.
3. If I (or the
Company) and
other
enterprises
controlled by
me (or the
Company) have
any business
opportunities to
engage in and
participate in
any activities
that may
compete with
Sanhua
Intelligent
Controls'
business
operation, they
shall
immediately
inform Sanhua
Intelligent
Controls of the
above business
opportunities. If
Sanhua
Intelligent
Controls makes
an affirmative
reply to take
advantage of
the business
opportunity
within a
43
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
reasonable
period specified
in the notice, it
shall do its best
to give the
business
opportunity to
Sanhua
Intelligent
Controls.
4. In case of
breach of the
above
commitment, I
(or the
Company) is
willing to bear
all
responsibilities
arising
therefrom and
fully
compensate all
direct or
indirect losses
caused to
Sanhua
Intelligent
Controls.
In order to
standardize the
related party
transactions
with Sanhua
Intelligent
Controls, Zhang
Daocai, Zhang
Yabo, Zhang
Shaobo, Sanhua
Holding Group
Zhang Daocai, the controlling
Zhang Yabo, shareholder of
the Company
Zhang Shaobo, Commitment and Sanhua
controlling on horizontal Lvneng
shareholder competition, Industrial the
Strict
Sanhua Holding related party trading partner July 24th, 2015 Long term
made the performance
Group Co., transactions and
Ltd., Zhejiang capital following
commitments:
Sanhua Lvneng occupation
1. I (or the
Industrial Company) and
Group Co., Ltd. the controlled
enterprises will
reduce the
related party
transactions
with Sanhua
intelligent
controls as far
as possible, and
will not use
their own status
as shareholders
44
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
of Sanhua
intelligent
controls to seek
for superior
rights in terms
of business
cooperation and
other aspects
compared with
other third
parties;
2. I (or the
Company) will
not take
advantage of
the right to enter
into a
transaction with
Sanhua
intellectual
controls using
the position as a
shareholder.
3. If there are
necessary and
unavoidable
related party
transactions, I
(or the
Company) and
the controlled
enterprises will
sign agreements
with Sanhua
intelligent
controls in
accordance
with the
principles of
fairness, follow
legal
procedures, and
perform the
information
disclosure
obligations in
accordance
with the
requirements of
relevant laws,
regulatory
documents and
the articles of
association. It
shall also
perform
relevant
internal
decision-
making and
approval
45
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
procedures to
ensure that it
will not conduct
transactions
with Sanhua
intelligent
controls on
terms that are
obviously
unfair
compared with
the market
price, and will
not use such
transactions to
engage in any
behavior that
damages the
legitimate
rights and
interests of
Sanhua
intelligent
controls and
other
shareholders.
Zhang Daocai,
Zhang Yabo,
Zhang Shaobo
and Sanhua
holding Group,
the controlling
shareholder of
the Company,
made the
following
commitments:
after the
Zhang Daocai, completion of
Zhang Yabo, the transaction,
Zhang Shaobo, Sanhua
Other Strict
controlling intelligent July 24th, 2015 Long term
Commitment performance
shareholder controls will
Sanhua Holding continue to
Group Co., Ltd. improve the
corporate
governance
structure and
independent
operation of the
Company
management
system in
accordance
with the
requirements of
relevant laws
46
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
and regulations
and the articles
of Association,
and continue to
maintain the
independence
of Sanhua
intelligent
controls in
business, assets,
finance,
institutions,
personnel, etc.
to protect the
interests of all
shareholders.
1. I (or the
Company) and
the controlled
enterprises will
reduce the
related party
transactions
with Sanhua
intelligent
controls as far
as possible, and
will not use the
position as a
shareholder of
Sanhua
intellectual
controls to seek
the superior
Zhang Daocai, rights for
Zhang Yabo, business
Zhang Shaobo, Commitment cooperation
controlling on horizontal with Sanhua
shareholder competition, intelligent
controls September 18th, Strict
Sanhua Holding related party Long term
compared with 2017 performance
Group Co., transactions and other third
Ltd., Zhejiang capital parties;
Sanhua Lvneng occupation 2. I (or the
Industrial Company) will
Group Co., Ltd. not use my
position as a
shareholder of
Sanhua
intellectual
controls to seek
for the priority
right to
cooperate with
Sanhua
intellectual
controls;
3. If there are
necessary and
unavoidable
related party
transactions, I
(or the
47
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Company) and
the controlled
enterprises will
sign agreements
with Sanhua
intelligent
controls in
accordance
with the
principles of
fairness, follow
legal
procedures, and
perform the
information
disclosure
obligations in
accordance
with the
requirements of
relevant laws,
regulatory
documents and
the articles of
association. It
shall also
perform
relevant
internal
decision-
making and
approval
procedures to
ensure that it
will not conduct
transactions
with Sanhua
intelligent
controls on
terms that are
obviously
unfair
compared with
the market
price, and will
not use such
transactions to
engage in any
behavior that
damages the
legitimate
rights and
interests of
Sanhua
intelligent
controls and
other
48
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
shareholders.
1. I (or the
Company) will
not directly or
indirectly
engage in or
participate in
any business
that may
constitute
potential direct
or indirect
competition
with Sanhua
intelligent
controls and its
subordinate
enterprises;
guaranteed that
legal and
effective
measures will
be taken to urge
other
enterprises
controlled by
me (or the
Zhang Daocai, Company) not
Zhang Yabo, to engage in or
Zhang Shaobo, Commitment participate in
controlling on horizontal any business
shareholder competition, that is
competitive September 18th, Strict
Sanhua Holding related party Long term
with Sanhua 2017 performance
Group Co., transactions and intelligent
Ltd., Zhejiang capital controls and its
Sanhua Lvneng occupation subordinate
Industrial enterprises
Group Co., Ltd. Business.
2. If Sanhua
intelligent
controls further
expands its
business scope,
I (or the
Company) and
other
enterprises
controlled by
me (or the
Company) will
not compete
with Sanhua
intelligent
controls'
expanded
business; if it is
possible to
compete with
Sanhua
intelligent
controls'
business after
expansion, I (or
the Company)
49
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
and other
enterprises
controlled by
me (or the
Company) will
withdraw from
Sanhua
intelligent
controls in the
following ways
of competition:
A. stop the
businesses that
compete or may
compete with
Sanhua
intelligent
controls; B.
inject the
competitive
business into
Sanhua
intelligent
controls; C.
transfer the
competitive
business to an
unrelated third
party.
3. If I (or the
Company) and
other
enterprises
controlled by
me (or the
Company) have
any business
opportunities to
engage in and
participate in
any activities
that may
compete with
Sanhua
intelligent
controls'
business
operation, they
shall
immediately
inform Sanhua
intelligent
controls of the
above business
opportunities. If
Sanhua
intelligent
controls makes
an affirmative
reply to take
advantage of
the business
opportunity
within a
reasonable
period specified
in the notice, it
50
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
shall do its best
to give the
business
opportunity to
Sanhua
intelligent
controls.
4. In case of
breach of the
above
commitment, I
(or the
Company) is
willing to bear
all
responsibilities
arising
therefrom and
fully
compensate all
direct or
indirect losses
caused to
Sanhua
intelligent
controls.
After the
completion of
the transaction,
the listed
Company will
continue to
improve the
corporate
governance
structure and
independent
Zhang Daocai,
operation of the
Zhang Yabo,
Company
Zhang Shaobo,
management
controlling
system in
shareholder
Other accordance September 18th, Strict
Sanhua Holding Long term
commitment with the 2017 performance
Group Co.,
requirements of
Ltd., Zhejiang
relevant laws
Sanhua Lvneng
and regulations
Industrial
and the articles
Group Co., Ltd.
of association,
continue to
maintain the
independence
of the listed
Company in
business, assets,
finance,
institutions,
personnel and
other aspects,
51
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
and effectively
protect the
interests of all
shareholders.
The
commitment
made at the time
of IPO, it shall
not engage in
the same
production,
operation or
business as the
Company in the
future. In order
to avoid
business
competition
Commitment with the
Commitment Zhang Daocai, on horizontal Company and
made during controlling competition, clarify the non-
Strict
initial public shareholder related party competition June 7th, 2005 Long term
obligations, performance
offering or Sanhua Holding transactions and
Sanhua Holding
refinancing Group Co., Ltd. capital
Group, on
occupation behalf of itself
and its
subsidiaries
with more than
50% equity,
makes a
commitment to
Sanhua
intelligent
controls to
avoid possible
horizontal
competition.
The controlling
shareholders of
Will not
the listed
actively reduce
Other Company
holdings of the
commitments Sanhua Holding
Company's
made to Group Co., Other August 18th, Until February Strict
shares within
minority Ltd., Zhejiang commitment 2022 17, 2024 performance
eighteen
shareholders of Sanhua Lvneng
months from
the Company Industrial
August 18,
Group Co.,
2022.
Ltd., and Mr.
Zhang Yabo
Are the
commitments Yes
fulfilled on time
If the
commitment
has not been
fulfilled beyond N/A
the deadline, it
should detail
the specific
52
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
reasons for not
completing the
fulfillment and
the next step of
the work plan.
II. The Company’s funds used by the controlling shareholder or its related parties for non-
operating purposes.
□ Applicable √ Not applicable
No such case during the reporting period.
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such case during the reporting period.
IV. Engagement and disengagement of the CPA firm
Whether this financial report was audited
□Yes √ No
This report was not audited.
V. Explanation Given by the Board of Directors and Supervisory Committee Regarding
the “Non-standard Auditor’s Report” Issued by the CPA Firm for the Reporting Period
□ Applicable √ Not applicable
VI. Explanation Given by the Board of Directors Regarding the “Non-standard Auditor’s
Report” Issued by the CPA Firm for the Prior Year
□ Applicable √ Not applicable
VII. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case during the reporting period.
VIII. Material Litigation and Arbitration
Material Litigation and Arbitration
□ Applicable √ Not applicable
No such case during the reporting period.
Other litigations
□ Applicable √ Not applicable
53
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
IX. Punishments and Rectifications
□ Applicable √ Not applicable
No such case during the reporting period.
X. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□ Applicable √ Not applicable
XI. Significant Related-party Transaction
1. Significant related-party transactions arising from routine operation
□Applicable √Not applicable
No such case in the reporting period.
2. Related-party transactions regarding purchase and disposal of assets or equity
□Applicable √Not applicable
No such case in the reporting period.
3. Significant related-party transactions arising from joint investments on external parties
□Applicable √Not applicable
No such case in the reporting period.
4. Related credit and debt transactions
□ Applicable √Not applicable
No such case in the reporting period.
5. Transactions with related financial companies
□Applicable √Not applicable
No such case in the reporting period.
6. Transactions between financial companies controlled by the Company and related parties
□Applicable √Not applicable
No such case in the reporting period.
7. Other significant related party transactions
□Applicable √Not applicable
54
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
No such case in the reporting period.
XII. Significant Contracts and Execution
1. Matters on trusteeship, contracting, and leasing
（1）Trusteeship
□ Applicable √ Not applicable
No such case in the reporting period.
（2）Contracting
□ Applicable √ Not applicable
No such case in the reporting period.
（3）Leasing
√Applicable □ Not applicable
Please refer to the notes of leasing instructions for details under Section X Financial Report.
Projects with gains and losses exceeding 10% of the Company's total profit during the reporting period
□ Applicable √ Not applicable
No such case in the reporting period.
2. Significant guarantees
√Applicable □ Not applicable
Unit: RMB in 10 thousand
External Guarantees from the Company and its Subsidiaries (Excluding Guarantees to the Subsidiaries)
Disclosu
re date
Guarante
of Actual
Guarant Guarante Actual Type of Counter Term of e for
announc Guarante Collatera Due or
eed e Occurre Guarant guarante Guarante Related
ement of e l (if any) Not
Party Cap nce Date ee e (if any) e Parties
the Amount
or Not
guarante
e cap
Company's Guarantees to Subsidiaries
Disclosu
re date
Guarante
of Actual
Guarant Guarante Actual Type of Counter Term of e for
announc Guarante Collatera Due or
eed e Occurre Guarant guarante Guarante Related
ement of e l (if any) Not
Party Cap nce Date ee e (if any) e Parties
the Amount
or Not
guarante
e cap
55
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
SANHU
A
INTER
Joint 2023.3.2
NATIO
August March liability 4-
NAL 240,000 5,363.19 Yes Yes
13, 2022 24, 2023 guarante 2024.3.2
SINGAP
e 3
ORE
PTE.
LTD.
Guangd
ong
Sanhua
Joint
New Novemb Novemb 2023.11.
liability
Energy er 7, 500 er 29, 500 29- Yes Yes
guarante
Automot 2023 2023 2024.4.2
e
ive
compon
ents Co.
SANHU
A
INTER
Joint
NATIO 2023.5.4
April 29, May 4, liability
NAL 340,000 3,064.68 - Yes Yes
2023 2023 guarante
SINGAP 2024.5.3
e
ORE
PTE.
LTD.
SANHU
A
INTER
Joint
NATIO 2023.5.4
April 29, May 4, liability
NAL 340,000 4,597.02 - Yes Yes
2023 2023 guarante
SINGAP 2024.5.3
e
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2023.5.1
NATIO
April 29, May 11, liability 1-
NAL 340,000 3,830.85 Yes Yes
2023 2023 guarante 2024.5.1
SINGAP
e 0
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2023.5.2
NATIO
April 29, May 22, 14,557.2 liability 2-
NAL 340,000 Yes Yes
2023 2023 3 guarante 2024.5.2
SINGAP
e 1
ORE
PTE.
LTD.
SANHU Joint 2023.5.3
April 29, May 31,
A 340,000 7,661.7 liability 1- Yes Yes
2023 2023
INTER guarante 2024.5.3
56
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
NATIO e 0
NAL
SINGAP
ORE
PTE.
LTD.
SANHU
A Joint
2023.6.9
INTER April 29, June 9, liability
95,000 10,690.2 - Yes Yes
NATIO 2023 2023 guarante
2024.6.5
NAL,IN e
C.
SANHU
A Joint
Septemb 2023.9.8
INTER April 29, liability
95,000 er 8, 2,850.72 - No Yes
NATIO 2023 guarante
2023 2024.9.6
NAL,IN e
C.
SANHU
A Joint 2023.9.1
Septemb
INTER April 29, liability -
95,000 er 1, 1,425.36 No Yes
NATIO 2023 guarante 2024.9.3
2023
NAL,IN e 0
C.
SANHU
A
INTER
Joint
NATIO 2023.5.1
April 29, May 11, liability
NAL 340,000 2,138.04 1- No Yes
2023 2023 guarante
SINGAP 2024.7.8
e
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2023.8.2
NATIO
April 29, August liability 1-
NAL 340,000 14,253.6 No Yes
2023 21, 2023 guarante 2024.8.2
SINGAP
e 0
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2023.10.
NATIO
April 29, October liability 20-
NAL 340,000 5,363.19 No Yes
2023 20, 2023 guarante 2024.10.
SINGAP
e 19
ORE
PTE.
LTD.
SANHU
A Joint 2023.10.
INTER April 29, October liability 25-
340,000 4,597.02 No Yes
NATIO 2023 25, 2023 guarante 2024.10.
NAL e 24
SINGAP
57
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2023.11.
NATIO Novemb
April 29, liability 20-
NAL 340,000 er 20, 7,661.7 No Yes
2023 guarante 2024.11.
SINGAP 2023
e 19
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2023.11.
NATIO Novemb
April 29, liability 20-
NAL 340,000 er 20, 7,126.8 No Yes
2023 guarante 2024.11.
SINGAP 2023
e 19
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2023.12.
NATIO Decemb
April 29, liability 7-
NAL 340,000 er 7, 9,960.21 No Yes
2023 guarante 2024.12.
SINGAP 2023
e 6
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2024.3.2
NATIO
April 29, March liability 4-
NAL 340,000 5,363.19 No Yes
2023 24, 2024 guarante 2025.3.2
SINGAP
e 3
ORE
PTE.
LTD.
SANHU
A
INTER
Joint
NATIO 2024.5.3
April 30, May 3, liability
NAL 360,000 3,064.68 - No Yes
2024 2024 guarante
SINGAP 2025.5.2
e
ORE
PTE.
LTD.
SANHU
A
INTER
Joint
NATIO 2024.5.3
April 30, May 3, liability
NAL 360,000 4,597.02 - No Yes
2024 2024 guarante
SINGAP 2025.5.2
e
ORE
PTE.
LTD.
58
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
SANHU
A
INTER
Joint
NATIO 2024.5.1
April 30, May 10, liability
NAL 360,000 3,830.85 0- No Yes
2024 2024 guarante
SINGAP 2025.5.9
e
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2024.5.2
NATIO
April 30, May 21, 14,557.2 liability 1-
NAL 360,000 No Yes
2024 2024 3 guarante 2025.5.2
SINGAP
e 0
ORE
PTE.
LTD.
SANHU
A
INTER
Joint 2024.5.3
NATIO
April 30, May 30, liability 0-
NAL 360,000 7,661.7 No Yes
2024 2024 guarante 2025.5.2
SINGAP
e 9
ORE
PTE.
LTD.
SANHU
A Joint
2024.6.6
INTER April 30, June 6, liability
95,000 10,690.2 - No Yes
NATIO 2024 2024 guarante
2025.6.4
NAL,IN e
C.
Zhejiang
Joint 2024.6.2
Sanhua
April 30, June 28, liability 8-
Heat 20,000 5,000 No Yes
2024 2024 guarante 2029.7.2
Exchang
e 0
er Co.
Guangd
ong
Sanhua
Joint 2024.4.2
New Novemb
April 25, liability 5-
Energy er 7, 500 1,105.88 No Yes
2024 guarante 2024.11.
Automot 2023
e 30
ive
compon
ents Co.
Guangd
ong
Sanhua
Joint 2024.4.2
New Novemb
April 25, liability 5-
Energy er 7, 500 62.67 No Yes
2024 guarante 2024.11.
Automot 2023
e 30
ive
compon
ents Co.
59
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Guangd
ong
Sanhua
Joint 2024.4.2
New Novemb
April 25, liability 5-
Energy er 7, 500 647.41 No Yes
2024 guarante 2024.11.
Automot 2023
e 30
ive
compon
ents Co.
Guangd
ong
Sanhua
Joint 2024.4.2
New Novemb
April 25, liability 5-
Energy er 7, 500 989.29 No Yes
2024 guarante 2024.12.
Automot 2023
e 30
ive
compon
ents Co.
Guangd
ong
Sanhua
Joint 2024.4.2
New Novemb
April 25, liability 5-
Energy er 7, 500 935.38 No Yes
2024 guarante 2024.12.
Automot 2023
e 30
ive
compon
ents Co.
Subsidiaries' Guarantees to Subsidiaries
Disclosu
re date
Guarante
of Actual
Guarant Guarante Actual Type of Counter Term of e for
announc Guarante Collatera Due or
eed e Occurre Guarant guarante Guarante Related
ement of e l (if any) Not
Party Cap nce Date ee e (if any) e Parties
the Amount
or Not
guarante
e cap
Total Amount of
Total Balance of
Guarantees to
Guarantees Actually
Subsidiaries
810,000 Paid to Subsidiaries 58,505.5
Approved during the
during the Reporting
Reporting Period
Period (C2)
(C1)
Total Amount of
Total Balance of
Approved
Actual Guarantees to
Guarantees to
810,000 Subsidiaries By the 113,882.13
Subsidiaries by the
end of the Reporting
end of the Reporting
Period (C4)
Period (C3)
The total amount of the Company's guarantees (the total of the above three items)
Total Amount of Total Amount of
Guarantees Guarantees Actually
Approved during the 810,000 Occurred during the 58,505.5
Reporting Period Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total Amount of Total Balance of
Guarantees Guarantees Actually
Approved by the 810,000 Paid by the End of 113,882.13
End of the Reporting the Reporting Period
Period (A3+B3+C3) (A4+B4+C4)
60
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Total Amount of Actual Guarantees
(A4+B4+C4) as a Percentage of the 6.31%
Company's Net Assets
Of which：
Balance of Debt Guarantees Directly or
Indirectly Offered to Guaranteed Objects
with Asset-liability Ratio Exceeding 70% (E)
Total Amount of the Above Three Guarantees
(D+E+F)
3. Entrusted wealth management
√Applicable □ Not applicable
Unit: RMB in 10 thousand
Accrued
Overdue impairment
Balance before
Specific types Capital source Amount uncollected amount of overdue
maturity
amount unrecovered
financial product
Security financial The Company’s
101,000 10,000
products self-owned funds
Bank financial The Company’s
130,000 130,000
products self-owned funds
Total 231,000 140,000
Specific situation of high-risk entrusted financial management with large single amount or low security and poor
liquidity
√Applicable □ Not applicable
61
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Unit: RMB in 10 thousand
Future
Actual
Amount entruste
Referen Actual recover Event
of Throug d
Determi ce profit y of overvie
Type Termina Capital Expecte provisio h legal financia
Name of Product Amoun Capital Start nation annualiz and loss profit w and
of tion investm d return n for procedu l
trustee type t source date of ed rate in the and loss relevant
trustee date ent (if any) impair res or manage
return of reportin in the index
ment (if not ment
return g period reportin (if any)
any) plan or
g period
not
Fixed
income
Citic National
Self- April with
Securities securit debt May 6, 2.81
10,000 owned 29, guarant 1.57% 3.01 Yes /
Company y reverse 2024 1
funds 2024 ee of
Limited repurchas
principa
e
l
Fixed
National income
Citic
debt Self- April with
Securities securit May 6, 2.84
reverse 10,000 owned 29, guarant 1.59% 3.05 Yes /
Company y 2024 8
repurchas funds 2024 ee of
Limited
e principa
l
Fixed
National income
Citic
debt Self- April April with
Securities securit 4.81
reverse 20,000 owned 29, 30, guarant 1.53% 5.01 Yes /
Company y 4
repurchas funds 2024 2024 ee of
Limited
e principa
l
Fixed
National income
Citic
debt Self- April with
Securities securit May 6, 0.49
reverse 10,000 owned 30, guarant 2.18% 0.6 Yes /
Company y 2024 7
repurchas funds 2024 ee of
Limited
e principa
l
Citic National Fixed
Self- April
Securities securit debt May 6, income 0.44
10,000 owned 30, 2.00% 0.55 Yes /
Company y reverse 2024 with 7
funds 2024
Limited repurchas guarant
62
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
e ee of
principa
l
Fixed
National income
Citic
debt Self- April with
Securities securit May 6, 0.44
reverse 10,000 owned 30, guarant 1.98% 0.54 Yes /
Company y 2024 1
repurchas funds 2024 ee of
Limited
e principa
l
Fixed
National income
Citic
debt Self- with
Securities securit May 6, May 13,
reverse 50,000 owned guarant 1.92% 18.41 15.911 Yes /
Company y 2024 2024
repurchas funds ee of
Limited
e principa
l
Fixed
National income
Citic
debt Self- with
Securities securit June 6, June 7, 1.86
reverse 10,000 owned guarant 1.79% 1.96 Yes /
Company y 2024 2024 2
repurchas funds ee of
Limited
e principa
l
Fixed
National income
Citic
debt Self- with
Securities securit June 6, June 7, 1.86
reverse 10,000 owned guarant 1.79% 1.96 Yes /
Company y 2024 2024 2
repurchas funds ee of
Limited
e principa
l
Fixed
National income
Citic
debt Self- with
Securities securit June 6, June 7, 1.86
reverse 10,000 owned guarant 1.79% 1.96 Yes /
Company y 2024 2024 2
repurchas funds ee of
Limited
e principa
l
Fixed
National
Citic income
debt Self-
Securities securit June 27, July 1, with 3.00
reverse 10,000 owned 2.76% 3.03 Yes /
Company y 2024 2024 guarant 5
repurchas funds
Limited ee of
e
principa
63
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
l
Capital Fixed
Protected income
Citic
Income Self- with
Securities securit May 14, June 11,
Certificate 40,000 owned guarant 1.90% 60 60.000 Yes /
Company y 2024 2024
s "Rise funds ee of
Limited
and principa
Shine" l
200,0
Total -- -- -- -- -- -- 100.09 -- -- -- --
00
Note: The Company's accumulated financial management of RMB3,835.99 million during the reporting period, and the above breakdown represents the Company's
significant financial management of a single item (the single item amounting to RMB100 million or more
64
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Entrusted financial management is expected to be unable to recover the principal or there are other situations that
may lead to impairment
□ Applicable √ Not applicable
4. Other significant contracts
□ Applicable √ Not applicable
No such case in the reporting period.
XIII. Other significant events
□ Applicable √ Not applicable
No such case in the reporting period.
XIV. Significant events of the Company’s subsidiaries
□ Applicable √ Not applicable
No such case in the reporting period.
65
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section VII Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares
Unit: Share
Before the change Changes in the period (+, -) After the change
Share
transferre
New
Bonus d
Shares Ratio Shares Others Sub-total Shares Ratio
share from
Issued
capital
reserve
1. Shares
subject to
condition 42,522,19 19,643,31 19,643,31 62,165,50
1.14% 1.66%
al 1 1 1 2
restriction
(s)
1)
Shares
held by
the states
2)
Shares
held by
State-
owned
corporate
3)
Other 42,466,19 19,667,31 19,667,31 62,133,50
1.14% 1.66%
domestic 1 1 1 2
shares
Of
which:
Shares
held by
domestic
legal
person
Shar
es held by
42,466,19 19,667,31 19,667,31 62,133,50
domestic 1.14% 1.66%
1 1 1 2
natural
person
4)
Shares
held by 56,000 0.00% -24,000 -24,000 32,000 0.00%
overseas
investors
66
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Of
which:
Shares
held by
overseas
legal
person
Shar
es held by
overseas 56,000 0.00% -24,000 -24,000 32,000 0.00%
natural
person
2. Shares - -
3,690,093 3,670,450
without 98.86% 19,643,31 19,643,31 98.33%
,344 ,033
restriction 1 1
1)
- -
RMB 3,690,093 3,670,450
98.86% 19,643,31 19,643,31 98.33%
common ,344 ,033
1 1
shares
2)
Domestic
ally listed
foreign
shares
3)
Foreign
shares
listed
overseas
4)
Others
3,732,615 3,732,615
3. Total 100.00% 0 0 100.00%
,535 ,535
Reason for the changes in share capital
√ Applicable □ Not applicable
1. At the beginning of each year, the number of locked shares held by senior executives of the Company shall be
recalculated according to 75% of the total shares held by senior executives.
2. The Company's 2024 Restricted Stock Incentive Plan grants 24.91 million shares of restricted stock to 1,933
incentive recipients, which are sourced from the Company's repurchase account, with outstanding stocks converted
to restricted stocks.
3. On June 29, 2024, the second vesting period of the 2022 Restricted Stock Incentive Plan expired, and 5.133
million Restricted stocks of 1,313 incentive recipients who met the conditions were released from restricted sale.
Approval for changes in share capital
√ Applicable □ Not applicable
I. The Company's 2024 Restricted Stock Incentive Plan grants totally 24.91 million shares of restricted stock to
67
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
1,933 incentive recipients at a grant price of 11.75 per share, with a grant date of June 19 2024, as approved
below:
1. On April 19, 2024, the 20th interim meeting of the 7th session of the Board of Directors and the 17th interim
meeting of the 7th session of the Supervisory Committee of the Company considered and passed the "Motion on
the 2024 Restricted Share Incentive Plan (Draft) of Zhejiang SANHUA Intelligent Control Stock Co. Ltd. 2024
Equity Incentive Plan" and "Proposal to Request the General Meeting of Shareholders to Authorise the Board of
Directors to Handle Matters in Relation to the 2024 Equity Incentive Plan", the aforesaid proposals having first been
considered and approved by the Remuneration and Evaluation Committee of the Board of Directors.
2. On April 30, 2024, the Company disclosed in its announcement the ''Public Announcement and Verification
Opinions of the Supervisory Committee on the List of Incentive Recipients under the 2024 Equity Incentive Plan''.
3. On May 6, 2024, the First Extraordinary General Meeting of 2024 of the Company considered and passed the
"Motion on the 2024 Restricted Stock Incentive Plan (Draft) of Zhejiang SANHUA Intelligent Control Company
Limited and its Summary", the "Motion on the 2024 Equity Incentive Plan of Zhejiang SANHUA Intelligent Control
Company Limited and its Management Measures for the Implementation of the 2024 Equity Incentive Plan and the
"Motion on the Proposal for the General Meeting to Proposal on Requesting the Shareholders' General Meeting to
Authorise the Board of Directors to Handle Matters Relating to the 2024 Equity Incentive Plan.
4. On May 13, 2024, the ''Proposal on the Granting of Restricted Shares to the Incentive Recipients under the 2024
Restricted Share Incentive Scheme of the Company'' was considered and approved at the Twenty-second
Extraordinary Meeting of the Seventh Session of the Board of Directors and the Nineteenth Extraordinary Meeting
of the Seventh Session of the Board of Supervisors of the Company and the aforesaid proposal had been considered
and approved by the Remuneration and Evaluation Committee of the Board of Directors first.
5. On June 3, 2024, the Twenty-third Interim Meeting of the Seventh Session of the Board of Directors and the
Twentieth Interim Meeting of the Seventh Session of the Supervisory Committee of the Company considered and
passed the ''Proposal on the Granting of Restricted Shares to the Incentive Recipients of the Suspended Grants under
the Company's Restricted Share Incentive Plan for the Year 2024'', ''Proposal on the Adjustment to the List of
Incentive Recipients to be Awarded Under the Restricted Share Incentive Plan for the Year 2024, the Number of
Grants and the Grant Price , the aforesaid motions have been first considered and approved by the Compensation
and Evaluation Committee of the Board of Directors.
II. On June 3, 2024, the Twenty-third Interim Meeting of the Seventh Session of the Board of Directors and the
Twentieth Interim Meeting of the Seventh Session of the Supervisory Committee of the Company considered and
passed the ''Proposal on the Achievement of the Conditions for Unlocking of the Restricted Shares during the Second
Unlocking Period of the Restricted Share Incentive Scheme in 2022'' and the ''Proposal on the Repurchase and
Cancellation of Part of Restricted Shares'', which had been firstly considered and approved by the Remuneration
and Evaluation Committee of the Board of Directors. A total of 1,313 incentive recipients were eligible for the
release of restricted shares, and the number of shares available for release of restricted shares was 5.133 million
shares.
68
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Transfer of shares
√Applicable □Not applicable
On May 13, 2024 and June 3, 2024, the Company granted totally 24.91 million shares of restricted stock to 1,933
incentive recipients, and on June 19, 2024, the Company completed the transfer and registration of the restricted
stock.
Information about the implementation of share repurchase
√ Applicable □ Not applicable
1. As at June 30, 2024, the Company had repurchased a total of 13,961,794 shares of the Company, accounting for
0.3740% of the total share capital of the Company, at the highest trading price of RMB 29.09 per share and the
lowest trading price of RMB 19.81 per share, for a total transaction amount of RMB 319,919,680.07 through the
special securities account for share repurchases by means of centralised bidding trading (transaction costs not
included). (excluding transaction fees).
2. As at June 30, 2024, a total of 12,415,964 shares repurchased by the Company in 2021 had been fully used for
the Company's restricted share incentive scheme, of which the number of repurchased shares used for the 2022
restricted share incentive scheme was 9,783,096, and that for the 2024 restricted share incentive scheme was
4,614,060, representing a total of 4,614,060 shares. The total amount accounted for 0.3326% of the current total
share capital of the Company.
3. As at June 30, 2024, the total number of shares repurchased by the Company in 2022 was 7,535,067 shares which
have been fully utilised for the 2024 Restricted Share Incentive Scheme, accounting for 0.2019% of the current total
share capital of the Company.
The progress on reduction of re-purchase shares by means of centralized bidding
□Applicable √Not applicable
Effects of changes in share capital on the basic earnings per share ("EPS"), diluted EPS, net assets per share
attributable to common shareholders of the Company, and other financial indexes over the last year and last
period
□ Applicable √ Not applicable
Please refer to the financial report for details.
Other contents that the Company considers necessary or required by the securities regulatory authorities to
disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: Share
Opening Closing balance Note for
Name of Vested in Increased in Date of
balance of of restricted restricted
shareholder current period current period unlocking
restricted shares shares
69
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
shares
According to According to
the relevant the relevant
provisions of provisions of
Zhang Yabo 29,268,150 0 0 29,268,150 shares shares
management management
for senior for senior
executives executives
According to According to
the relevant the relevant
provisions of provisions of
shares shares
Wang Dayong 189,421 0 100,000 289,421 management management
for senior for senior
executives executives
+ equity + equity
incentive incentive
According to According to
the relevant the relevant
provisions of provisions of
shares shares
Ni Xiaoming 183,796 0 80,000 263,796 management management
for senior for senior
executives executives
+ equity + equity
incentive incentive
According to According to
the relevant the relevant
provisions of provisions of
shares shares
Chen Yuzhong 252,562 0 80,000 332,562 management management
for senior for senior
executives executives
+ equity + equity
incentive incentive
According to According to
the relevant the relevant
provisions of provisions of
shares shares
Hu Kaicheng 189,421 0 80,000 269,421 management management
for senior for senior
executives executives
+ equity + equity
incentive incentive
According to According to
the relevant the relevant
provisions of provisions of
shares shares
Yu Yingkui 212,901 0 80,000 292,901 management management
for senior for senior
executives executives
+ equity + equity
incentive incentive
According to According to
the relevant the relevant
provisions of provisions of
Mo Yang 10,926 0 0 10,926 shares shares
management management
for senior for senior
executives executives
According to According to
the relevant the relevant
Chen Xiaoming 8,325 0 0 8,325 provisions of provisions of
shares shares
management management
70
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
for senior for senior
executives executives
According to According to
the relevant the relevant
provisions of provisions of
Other incentive
11,956,000 5,016,000 24,490,000 31,430,000 shares shares
objects
management management
for equity for equity
incentive incentive
Total 42,271,502 5,016,000 24,910,000 62,165,502 -- --
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
Total Number of Preferred Shareholders
Total Number of Common
(If Any) (Refer to Note 8) Whose Voting
Shareholders at the End of 112,836 0
the Reporting Period Rights Have Been Recovered at the End
of the Reporting Period
Particulars about shares held by shareholders with a shareholding percentage over 5% or the Top 10 of them
(excluding lending shares through the facility)
The
Total The Pledged or frozen
Increase/ number of
Share- shares held number of
Nature of decrease common
Name of holding at the end shares held
sharehold during the shares held
shareholder percentage of the without
er reporting with Status Amount
(%) reporting trading
period trading
period restrictions
restrictions
Domestic
Sanhua
non-state-
Holding 948,487,07 948,487,07
owned 25.41% 0 0 N/A 0
Group Co., 7 7
corporatio
Ltd.
n
Zhejiang
Domestic
Sanhua 150,000,00
non-state-
Lvneng 742,747,95 742,747,95
owned 19.90% 0 0 Pledged 0
Industrial 4 4.00
corporatio [Note]
Group Co.,
n
Ltd.
Hong Kong -
Overseas
Central 429,302,60 429,302,60
corporatio 11.50% 149,849,40 0 N/A 0
Clearing 9 9
n 6
Limited
Domestic
Zhang Yabo 1.05% 39,024,200 0 29,268,150 9,756,050 N/A 0
Individual
Industrial
and
Commercial
Bank of
Others 0.71% 26,458,197 9,825,200 0 26,461,697 N/A 0
China
Limited -
Huatai-Perry
CSI 300
71
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Traded
Open-End
Index Fund
Zhang Domestic
0.66% 24,662,822 24,662,822 0 24,662,822 N/A 0
Jianping Individual
Industrial
and
Commercial
Bank of
China
Limited -
ETF CSI
New Energy Others 0.65% 24,383,702 7,758,712 0 24,383,702 N/A 0
Vehicle
Industry
Index
Initiated
Securities
Investment
Fund (LOF)
China
Construction
Bank
Corporation
- E Fund
CSI 300
Others 0.49% 18,317,634 2,376,600 0 18,317,634 N/A 0
Traded
Open Index
Initiated
Securities
Investment
Fund
Industrial
and
Commercia
l Bank of
China
Limited - Others 0.47% 17,552,480 11,646,500 0 17,561,480 N/A 0
HuataiPerry
CSI 300
Traded
Open-End
Index Fund
China
Merchants
Bank
Corporation
- Quanguo
Xuyuan
Three Year Others 0.46% 17,208,754 -4,210,600 0 17,208,754 N/A 0
Holding
Period
Hybrid
Securities
Investment
Fund
72
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Information about
Strategic Investors’ or
General Legal Persons’
Becoming Top Ten No
Common Shareholders for
Placement of New Shares
(If Any) (Refer to Note 3)
Explanation on Among the above shareholders, Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial
Associated Relationship Group Co., Ltd. and Zhang Yabo are the persons acting in concert. The Company does not know
or Concerted Actions whether there is any related relationship between other shareholders, or whether they belong to the
among the Above- persons acting in concert stipulated in the Administrative Measures for the Acquisition of Listed
Mentioned Shareholders Companies.
Explanation of the above
shareholders involved in
proxy/trusted voting rights No
and waiver of voting
rights
Special note on the
existence of repurchase
special accounts among No
the top 10 shareholders
( if any)(Refer to Note 11)
Particulars about Shares Held by Top Ten Common Shareholders Holding Shares That Are Not Subject to Trading Restrictions
(Excluding lending shares through the transfer facility and executive lock-up shares)
Type of shares
Number of Common Shares Held without Restrictions at the End of
Name of Shareholder
the Reporting Period
Type Amount
RMB
Sanhua Holding Group 948,487,07
948,487,077 common
Co., Ltd. 7
stock
RMB
Zhejiang Sanhua Lvneng 742,747,95
742,747,954 common
Industrial Group Co., Ltd 4
stock
RMB
Hong Kong Central 429,302,60
429,302,609 common
Clearing Limited 9
stock
Industrial and
Commercial Bank of RMB
China Limited - Huatai- 26,458,197 common 26,458,197
Perry CSI 300 Traded stock
Open-End Index Fund
RMB
Zhang Jianping 24,662,822 common 24,662,822
stock
China Life Insurance
Company Co., Ltd. - RMB
Traditional - General 24,383,702 common 24,383,702
Insurance Products -005L stock
- CT001 Shanghai
Industrial and
Commercial Bank of
China Limited - ETF CSI RMB
New Energy Vehicle 18,317,634 common 18,317,634
Industry Index Initiated stock
Securities Investment
Fund (LOF)
China Construction Bank
RMB
Corporation - E Fund CSI
17,552,480 common 17,552,480
300 Traded Open Index stock
Initiated Securities
73
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Investment Fund
China Merchants Bank
Corporation - Quanguo
RMB
Xuyuan Three Year
17,208,754 common 17,208,754
Holding Period Hybrid stock
Securities Investment
Fund
Industrial and
Commercial Bank of
China Limited - China RMB
Europe Times Vanguard 16,827,643 common 16,827,643
Equity Initiating stock
Securities Investment
Fund
Explanation of Associated
Relationship or Concerted
Actions among Top Ten
Common Shareholders Among the above shareholders, Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial
without Trading Group Co., Ltd. and Zhang Yabo are the persons acting in concert. The Company does not know
Restrictions, and among whether there is any related relationship between other shareholders, or whether they belong to the
Top Ten Common persons acting in concert stipulated in the Administrative Measures for the Acquisition of Listed
Shareholders without Companies.
Trading Restrictions and
Top Ten Common
Shareholders
Explanation of Top Ten
Common Shareholders’
Participation in Securities N/A
Margin Trading (If Any)
(Refer to Note 4)
Note: Sanhua Lvneng pledged additional 70 million shares on August 8, 2024. After this pledge, the shares of the
Company held by Sanhua Lvneng have been pledged the aggregate of 220 million shares.
Shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders with unlimited shares
in circulation participating in the lending of shares in the transfer and financing business
√ Applicable □ Not applicable
Unit: Share
Shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders with unlimited shares in circulation
participating in the lending of shares in the transfer and financing business
Shares in the common
Shares lent and not yet Shares in the common Shares lent and not yet
account and credit
returned at the period- account and credit account returned at the period-
account at the period-
Full name of begin at the period-end end
begin
shareholder
As % of As % of As % of
Total Total Total As % of total Total
total share total share total share
shares shares shares share capital shares
capital capital capital
Industrial and
Commercial
Bank of China
Limited - 24,211,3 26,458,19
0.65% 3,500 0.00% 0.71% 3,500 0.00%
Huatai-Perry 97 7
CSI 300
Traded Open-
End Index
74
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Fund
China
Construction
Bank
Corporation -
E Fund CSI
16,781,0 17,552,48
300 Traded 0.45% 52,100 0.00% 0.47% 9,000 0.00%
80 0
Open Index
Initiated
Securities
Investment
Fund
Top 10 shareholders and top 10 shareholders with unlimited number of outstanding shares changed from the
previous period due to lending/returning of convertible bonds
□ Applicable √ Not applicable
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducted any
agreed buy-back in the reporting period
□ Applicable √ Not applicable
No such cases during the current reporting period.
IV. Shareholding changes of directors, supervisors, senior management personnel
√ Applicable □ Not applicable
Number Number
Number Number
Number Number of of
of Number of
of shares of shares restricted restricted
additional of shares restricted
held at held at shares shares
Tenure shares reduced shares
Name Title the the granted granted
status held during the granted
period- period- at the at the
during the period during the
begin(sha end period- period-
period (shares) period
res) (shares) begin(sha end
(shares) (shares)
res) (shares)
Wang Direct or, Incumben
252,562 100,000 0 352,562 56,000 100,000 132,000
Dayong President t
Ni Incumben
Direct or 245,062 80,000 0 325,062 49,000 80,000 108,000
Xiaoming t
Direct or,
Chen Incumben
chief 336,750 80,000 0 416,750 56,000 80,000 112,000
Yuzhong t
engine er
Vice
president,
Hu Secretary Incumben
252,562 80,000 0 332,562 56,000 80,000 112,000
Kaicheng of the t
board of
directors
Vice
Yu Incumben
president, 283,869 80,000 0 363,869 56,000 80,000 112,000
Yingkui t
CFO
Total -- -- 1,370,805 420,000 0 1,790,805 273,000 420,000 576,000
75
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
V. Changes in Controlling Shareholders or Actual Controllers
Change of the controlling shareholder during the current reporting period
□ Applicable √ Not applicable
No such cases in the reporting period.
Change of the actual controller during the reporting period
□ Applicable √ Not applicable
No such cases in the current reporting period.
76
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section VIII Information of Preferred Shares
□ Applicable √ Not applicable
No existed preferred shares for the Company during the current reporting period.
77
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section IX Bonds
□ Applicable √ Not applicable
78
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Section X Financial Report
I. Audit report
Whether the semi-annual report is audited
□ Yes √ No
The Company’s 2024 Semi-annual Financial Report has not been audited.
II. Financial Statements
Units of financial reports in the notes: RMB
1. Consolidated balance sheet
Prepared by: Zhejiang Sanhua Intelligent Controls Co., Ltd.
June 30, 2024
Unit: RMB
Items June 30, 2024 January 1, 2024
Current asset：
Cash and Bank Balances 5,222,883,432.16 6,584,684,683.93
Settlement funds
Loans to other banks
Held-for-trading financial
100,000,000.00
assets
Derivative financial assets 10,931,764.44 22,636,112.68
Notes receivable 2,675,326,003.36 2,476,839,413.89
Accounts receivable 7,152,843,602.65 5,773,991,481.22
Receivable financing
Advances paid 151,070,635.58 133,792,623.54
Premium receivable
Reinsurance accounts
receivable
Reinsurance reserves
receivable
Other receivables 189,681,028.61 227,792,892.12
Including: Interest
receivable
Dividends
receivable
Repurchasing of financial
assets
Inventories 4,509,575,295.73 4,600,729,378.19
Including: Data
resources
Contract assets
Assets held for sales
Non-current assets due
within one year
Other current assets 191,097,848.27 251,073,584.56
79
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Total current assets 20,203,409,610.80 20,071,540,170.13
Non-current assets:
Loans and advances paid
Debt investments
Other debt investments
Long-term receivable 3,805,833.60
Long-term equity
37,094,293.30 37,924,431.29
investments
Other equity instrument
investments
Other non-current financial
assets
Investment property 7,588,431.93 8,165,805.31
Fixed assets 8,018,985,493.67 7,730,363,778.82
Construction in progress 2,746,629,632.47 2,036,326,757.72
Productive biological assets
Oil & gas assets
Right-of-use assets 273,457,356.51 313,254,745.53
Intangible assets 1,022,779,188.91 843,866,292.82
Including: Data
resources
Development expenditures
Including: Data
resources
Goodwill 6,583,577.40 6,785,228.04
Long-term prepayments 139,905,636.19 118,096,436.09
Deferred tax assets 102,523,517.15 156,432,157.23
Other non-current assets 541,833,750.09 564,023,136.83
Total non-current assets 12,897,380,877.62 11,819,044,603.28
Total assets 33,100,790,488.42 31,890,584,773.41
Current liabilities:
Short-term borrowings 1,398,200,202.82 1,212,150,378.85
Central bank loans
Loans from other banks
Held-for-trading financial
3,500,000.00
liabilities
Derivative financial liabilities 36,903,370.31 10,719,110.02
Notes payable 3,520,145,951.34 3,416,711,594.64
Accounts payable 5,033,866,555.98 4,449,940,359.81
Advances received
Contract liabilities 62,714,790.24 51,788,802.03
Selling of repurchased
financial assets
Absorbing deposit and
interbank deposit
Deposit for agency security
transaction
Deposit for agency security
underwriting
Employee benefits payable 494,084,219.25 598,801,246.34
Taxes and rates payable 272,273,758.52 382,396,791.19
Other payables 578,350,601.82 250,642,662.86
Including: Interest
Payable
Dividends
80
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Payable
Handling fee and
commission payable
Reinsurance accounts
payable
Liabilities classified as
held for sale
Non-current liabilities due
292,569,239.45 1,440,093,253.93
within one year
Other current liabilities 2,837,216.89 2,099,986.27
Total current liabilities 11,691,945,906.62 11,818,844,185.94
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 2,220,000,000.00 1,030,801,111.13
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 198,342,644.46 221,295,481.86
Long-term payables 17,497,031.70 11,290,788.32
Long-term employee
37,014,460.55 39,840,362.77
benefits payable
Provisions
Deferred income 411,084,710.03 379,140,042.48
Deferred tax liabilities 247,868,736.73 307,511,069.30
Other non-current liabilities 18,154,107.25 18,154,107.25
Total non-current liabilities 3,149,961,690.72 2,008,032,963.11
Total liabilities 14,841,907,597.34 13,826,877,149.05
Equity:
Share capital 3,732,615,535.00 3,732,615,535.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 3,198,382,978.14 3,455,643,565.98
Less: Treasury shares 435,418,676.78 423,468,591.57
Other comprehensive income -56,162,453.59 114,757,064.28
Special reserve
Surplus reserve 1,011,914,243.67 1,011,914,243.67
General risk reserve
Undistributed profit 10,590,831,458.68 10,002,942,167.43
Total equity attributable to the
18,042,163,085.12 17,894,403,984.79
parent Company
Non-controlling interest 216,719,805.96 169,303,639.57
Total equity 18,258,882,891.08 18,063,707,624.36
Total liabilities & equity 33,100,790,488.42 31,890,584,773.41
Legal representative：Zhang Yabo Officer in charge of accounting：Yu Yingkui Head of accounting
department：Li Zhimi
2. Parent Company Balance Sheet
Unit: RMB
Items June 30, 2024 January 1, 2024
Current assets:
Cash and bank balances 1,972,313,106.42 3,755,111,885.56
81
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Held-for-trading financial
100,000,000.00
assets
Derivative financial assets 8,355,659.20 1,463,100.00
Notes receivable 391,660,072.05 1,293,651,597.02
Accounts receivable 1,533,553,307.90 703,445,875.41
Receivables financing
Advances paid 8,883,876.05 7,501,313.44
Other receivables 467,355,212.61 2,269,591,236.02
Including: Interest
Receivable
Dividends
550,000,000.00
Receivable
Inventories 683,943,972.23 772,429,361.79
Including: Data
resources
Contract assets
Assets classified as held for
sale
Non-current assets due
within one year
Other current assets
Total current assets 5,166,065,206.46 8,803,194,369.24
Non-current assets:
Debt investments
Other debt investments
Long-term receivable 500,000.00 500,000.00
Long-term equity investments 9,167,742,923.42 8,880,133,268.57
Other equity instrument
investments
Other non-current financial
assets
Investment property
Fixed assets 1,654,521,000.34 1,623,330,889.08
Construction in progress 64,544,194.78 53,871,265.08
Productive biological assets
Oil & gas assets
Right-of-use assets 7,341,677.21 9,370,623.95
Intangible assets 142,242,171.23 142,130,830.79
Including: Data
resources
Development expenditures
Including: Data
resources
Goodwill
Long-term prepayments 16,887,644.98 15,876,569.88
Deferred tax assets 5,587,256.35
Other non-current assets 79,453,826.12 99,458,254.31
Total non-current assets 11,133,233,438.08 10,830,258,958.01
Total assets 16,299,298,644.54 19,633,453,327.25
Current liabilities:
Short-term borrowings 400,368,222.26 202,384,500.02
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 579,704,486.32 559,657,858.19
82
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Accounts payable 1,769,427,802.35 1,465,144,230.80
Advances received
Contract liabilities 1,053,654.28 121,488.76
Employee benefits payable 95,894,342.21 127,817,926.77
Taxes and rates payable 34,905,187.74 112,191,203.17
Other payables 749,086,724.15 4,315,100,068.76
Including: interest
payable
Dividends
Payable
Liabilities classified as held for
sale
Non-current liabilities due
236,096,564.61 1,373,267,226.41
within one year
Other current liabilities
Total current liabilities 3,866,536,983.92 8,155,684,502.88
Non-current liabilities:
Long-term borrowings 2,170,000,000.00 1,030,801,111.13
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 3,451,045.86 5,571,522.93
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 48,351,515.00 47,332,045.49
Deferred tax liabilities 72,722,628.72 81,604,566.52
Other non-current
liabilities
Total non-current liabilities 2,294,525,189.58 1,165,309,246.07
Total liabilities 6,161,062,173.50 9,320,993,748.95
Equity:
Share capital 3,732,615,535.00 3,732,615,535.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 4,100,378,768.83 4,351,276,453.48
Less: treasury shares 435,418,676.78 423,468,591.57
Other comprehensive income
Special reserve
Surplus reserve 883,822,071.35 883,822,071.35
Undistributed profit 1,856,838,772.64 1,768,214,110.04
Total equity 10,138,236,471.04 10,312,459,578.30
Total liabilities & equity 16,299,298,644.54 19,633,453,327.25
83
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
3. Consolidated Income statement
Unit: RMB
Items 2024 Interim 2023 Interim
I. Total operating revenue 13,676,072,161.08 12,528,920,625.59
Including: Operating revenue 13,676,072,161.08 12,528,920,625.59
Interest income
Premium earned
Revenue from handling
charges and commission
II. Total operating cost 11,770,455,716.86 10,680,635,898.54
Including: Operating cost 9,920,390,318.93 9,308,660,916.27
Interest expenses
Handling charges and
commission expenditures
Surrender value
Net payment of insurance
claims
Net provision of insurance
policy reserve
Premium bonus
expenditures
Reinsurance expenses
Taxes and surcharges 84,233,430.28 59,377,415.32
Selling expenses 297,002,465.74 264,131,730.27
Administrative expenses 887,999,303.50 619,856,574.65
R&D expenses 632,611,907.96 580,269,632.04
Financial expenses -51,781,709.55 -151,660,370.01
Including: Interest expenses 71,736,060.65 126,688,323.68
Interest income 84,853,231.77 87,661,462.57
Add: Other income 128,552,012.14 62,816,875.53
Investment income (or less:
-11,680,068.63 -46,142,073.31
losses)
Including: Investment
income from associates and joint 5,419,862.01 5,296,750.30
ventures
Gains from derecognition
of financial assets at amortized -8,174,613.92
cost
Gains on foreign
exchange (or less: losses)
Gains on net exposure to
hedging risk (or less: losses)
Gains on changes in fair
-43,077,568.28 -88,814,525.03
value (or less: losses)
Credit impairment loss (or
-76,800,982.89 -72,153,972.68
less: losses)
Assets impairment loss
-44,434,103.33 -24,923,403.90
(or less: losses)
Gains on asset disposal (or
-245,261.28 -406,527.50
less: losses)
III. Operating profit (or less:
1,857,930,471.95 1,678,661,100.16
losses)
Add: Non-operating revenue 4,559,030.63 4,564,351.93
84
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Less: Non-operating
8,527,704.42 5,260,738.91
expenditures
IV. Profit before tax (or less: total
1,853,961,798.16 1,677,964,713.18
loss)
Less: Income tax expense 332,296,145.99 263,470,197.45
V. Net profit (or less: net loss) 1,521,665,652.17 1,414,494,515.73
(I) Categorized by the continuity
of operations
1. Net profit from continuing
1,521,665,652.17 1,414,494,515.73
operations (or less: net loss)
2. Net profit from
discontinued operations (or
less: net loss)
(II) Categorized by the portion of
equity ownership
1. Net profit attributable to
owners of parent Company (or 1,514,515,444.75 1,394,760,848.85
less: net loss)
2. Net profit attributable to
non-controlling shareholders 7,150,207.42 19,733,666.88
(or less: net loss)
VI. Other comprehensive income
-170,919,517.87 94,145,944.13
after tax
Items attributable to the
-170,919,517.87 94,145,944.13
owners of the parent Company
(I) Not to be reclassified
subsequently to profit or loss
1.Changes in remeasurement
on the net defined benefit plan
2. Items under equity method
that will not be reclassified to
profit or loss
3. Changes in fair value of
other equity instrument
investments
4. Changes in fair value of
own credit risk
5. Others
(II) To be reclassified
-170,919,517.87 94,145,944.13
subsequently to profit or loss
1. Items under equity method
that may be reclassified to
profit or loss
2. Changes in fair value of
other debt investments
3. Profit or loss from
reclassification of financial
assets into other
comprehensive income
4. Provision for credit
impairment of other debt
investments
5.Cash flow hedging reserve
6. Translation reserve -170,919,517.87 94,145,944.13
7. Others
85
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Items attributable to non-
controlling shareholders
VII. Total comprehensive income 1,350,746,134.30 1,508,640,459.86
Items attributable to the
1,343,595,926.88 1,488,906,792.98
owners of the parent Company
Items attributable to non-
7,150,207.42 19,733,666.88
controlling shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 0.40 0.39
(II) Diluted EPS (yuan per share) 0.40 0.39
Legal representative：Zhang Yabo Officer in charge of accounting：Yu Yingkui Head of accounting
department：Li Zhimi
4. Income statement of the Parent Company
Unit: RMB
Items 2024 Interim 2023 Interim
I. Operating revenue 3,604,910,150.35 3,376,084,891.56
Less: Operating cost 2,699,896,113.74 2,626,431,304.22
Taxes and surcharges 20,108,843.46 16,723,005.44
Selling expenses 16,870,927.89 15,955,241.78
Administrative expenses 176,761,913.69 134,058,887.06
R&D expenses 146,298,916.01 153,802,234.31
Financial expenses -2,764,047.88 44,791,262.57
Including: Interest expenses 41,595,966.73 106,958,559.19
Interest income 47,883,088.75 59,962,732.06
Add: Other income 13,056,130.43 18,207,329.04
Investment income (or less:
523,114,161.13 64,615,265.38
losses)
Including: Investment
income from associates and 4,819,302.01 4,605,330.06
joint ventures
Gains from derecognition of
financial assets at amortized
cost
(or less: losses)
Gains on net exposure to
hedging (or less: losses)
Gains on changes in fair
1,842,559.20 -2,692,778.64
value (or less: losses)
Credit impairment loss (or
4,001,428.97 -3,773,476.35
less: losses)
Assets impairment loss (or
less: losses)
Gains on asset disposal (or
2,972.81 102,873.11
less: losses)
II. Operating profit (or less:
1,089,754,735.98 460,782,168.72
losses)
Add: Non-operating revenue 1,076,815.23 522,218.81
Less: Non-operating
1,652,847.65 622,679.50
expenditures
III. Profit before tax (or less:
1,089,178,703.56 460,681,708.03
total loss)
86
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Less: Income tax expense 73,927,887.46 53,317,816.09
IV. Net profit (or less: net loss) 1,015,250,816.10 407,363,891.94
(I) Net profit from continuing
1,015,250,816.10 407,363,891.94
operations (or less: net loss)
(II) Net profit from discontinued
operations (or less: net loss)
V. Other comprehensive income
after tax
(I) Not to be reclassified
subsequently to profit or loss
1.Changes in remeasurement
on the net defined benefit
plan
2. Items under equity method
that will not be reclassified
to profit or loss
3. Changes in fair value of
other equity instrument
investments
4. Changes in fair value of
own credit risk
5. Others
(II) To be reclassified
subsequently to profit or loss
1. Items under equity method
that may be reclassified to
profit or loss
2. Changes in fair value of
other debt investments
3. Profit or loss from
reclassification of financial
assets into other
comprehensive income
4. Provision for credit
impairment of other debt
investments
5. Cash flow hedging reserve
(profit or loss on cash flow
hedging)
6. Translation reserve
7. Others
VI. Total comprehensive income 1,015,250,816.10 407,363,891.94
VII. Earnings per share (EPS):
(I) Basic EPS
(II) Diluted EPS
5. Consolidated Cash Flow Statement
Unit: RMB
Items 2024 Interim 2023 Interim
I. Cash flows from operating
activities:
Cash receipts from sale of goods or
12,835,226,773.27 12,310,137,775.42
rendering of services
Net increase of client deposit and
87
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
interbank deposit
Net increase of central bank loans
Net increase of loans from other
financial institutions
Cash receipts from original
insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder
deposit and investment
Cash receipts from interest,
handling charges and commission
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency
security transaction
Receipts of tax refund 418,010,676.37 230,989,224.84
Other cash receipts related to
238,171,867.92 115,095,499.27
operating activities
Subtotal of cash inflows from
13,491,409,317.56 12,656,222,499.53
operating activities
Cash payments for goods
9,064,591,310.07 8,435,913,051.14
purchased and services received
Net increase of loans and advances
to clients
Net increase of central bank
deposit and interbank deposit
Cash payments for insurance
indemnities of original insurance
contracts
Net increase of loans to others
Cash payments for interest,
handling charges and commission
Cash payments for policy bonus
Cash paid to and on behalf of
2,086,751,143.95 1,745,042,767.20
employees
Cash payments for taxes and rates 691,470,586.47 370,908,197.71
Other cash payments related to
486,966,400.90 385,684,889.87
operating activities
Subtotal of cash outflows from
12,329,779,441.39 10,937,548,905.92
operating activities
Net cash flows from operating
1,161,629,876.17 1,718,673,593.61
activities
II. Cash flows from investing
activities:
Cash receipts from withdrawal of
investments
Cash receipts from investment
7,417,488.90 11,925,092.64
income
Net cash receipts from the disposal
of fixed assets, intangible assets and 358,018.25 560,463,829.79
other long-term assets
Net cash receipts from the disposal
of subsidiaries & other business units
Other cash receipts related to
599,458,224.67 454,311,380.20
investing activities
Subtotal of cash inflows from 607,233,731.82 1,026,700,302.63
88
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
investing activities
Cash payments for the acquisition
of fixed assets, intangible assets and 1,595,170,957.86 1,938,773,141.25
other long-term assets
Cash payments for investments 3,500,000.00
Net increase of pledged
borrowings
Net cash payments for the
acquisition of subsidiaries & other
business units
Other cash payments related to
439,605,851.15 75,198,297.70
investing activities
Subtotal of cash outflows from
2,034,776,809.01 2,017,471,438.95
investing activities
Net cash flows from investing
-1,427,543,077.19 -990,771,136.32
activities
III. Cash flows from financing
activities:
Cash receipts from absorbing
337,623,562.50 7,090,938.20
investments
Including: Cash received by
subsidiaries from non-controlling 35,010,251.75 7,090,938.20
shareholders as investments
Cash receipts from borrowings 1,390,000,000.00 918,843,500.00
Other cash receipts related to
29,918,063.05 39,626,352.75
financing activities
Subtotal of cash inflows from
1,757,541,625.55 965,560,790.95
financing activities
Cash payments for the repayment
1,140,000,000.00 967,560,802.01
of borrowings
Cash payments for distribution of
dividends or profits and for interest 993,916,578.17 806,707,757.88
expenses
Including: Cash paid by
subsidiaries to non-controlling 1,200,000.00 19,951,954.67
shareholders as dividend or profit
Other cash payments related to
362,563,704.94 68,498,477.35
financing activities
Subtotal of cash outflows from
2,496,480,283.11 1,842,767,037.24
financing activities
Net cash flows from financing
-738,938,657.56 -877,206,246.29
activities
IV. Effect of foreign exchange rate
-44,543,473.28 149,575,367.55
changes on cash & cash equivalents
V. Net increase in cash and cash
-1,049,395,331.86 271,578.55
equivalents
Add: Opening balance of cash and
3,624,955,498.84 2,050,328,601.77
cash equivalents
VI. Closing balance of cash and cash
2,575,560,166.98 2,050,600,180.32
equivalents
6. Cash Flow Statement of the Parent Company
Unit: RMB
Items 2024 Interim 2023 Interim
89
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
I. Cash flows from operating activities:
Cash receipts from sale of goods and
3,766,750,803.41 2,915,020,263.22
rendering of services
Receipts of tax refund 55,669,134.77 59,871,119.99
Other cash receipts related to
104,539,629.58 59,140,225.47
operating activities
Subtotal of cash inflows from
3,926,959,567.76 3,034,031,608.68
operating activities
Cash payments for goods purchased
1,963,487,906.98 1,801,889,579.35
and services received
Cash paid to and on behalf of
351,014,174.24 310,450,399.64
employees
Cash payments for taxes and rates 94,604,476.46 81,786,514.53
Other cash payments related to
70,526,615.25 51,315,280.70
operating activities
Subtotal of cash outflows from
2,479,633,172.93 2,245,441,774.22
operating activities
Net cash flows from operating
1,447,326,394.83 788,589,834.46
activities
II. Cash flows from investing
activities:
Cash receipts from withdrawal of
investments
Cash receipts from investment
1,060,191,424.87 61,868,191.54
income
Net cash receipts from the disposal
of fixed assets, intangible assets and 7,900.00 91,582,409.06
other long-term assets
Net cash receipts from the disposal
of subsidiaries & other business units
Other cash receipts related to
1,116,585,714.74 462,874,796.10
investing activities
Subtotal of cash inflows from investing
2,176,785,039.61 616,325,396.70
activities
Cash payments for the acquisition of
fixed assets, intangible assets and other 103,365,117.04 82,942,530.86
long-term assets
Cash payments for investments 1,230,161,306.01 145,114,207.25
Net cash payments for the
acquisition of subsidiaries & other
business units
Other cash payments related to
372,443,768.69 979,549,544.59
investing activities
Subtotal of cash outflows from
1,705,970,191.74 1,207,606,282.70
investing activities
Net cash flows from investing
470,814,847.87 -591,280,886.00
activities
III. Cash flows from financing
activities:
Cash receipts from absorbing
292,692,500.00
investments
Cash receipts from borrowings 1,340,000,000.00
Other cash receipts related to
1,022,395,689.59 573,060,328.06
financing activities
Subtotal of cash inflows from
2,655,088,189.59 573,060,328.06
financing activities
90
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Cash payments for the repayment of
1,140,000,000.00 199,092,500.00
borrowings
Cash payments for distribution of
dividends or profits and for interest 968,772,142.42 768,979,698.33
expenses
Other cash payments related to
3,754,705,275.57 1,711,728.00
financing activities
Subtotal of cash outflows from
5,863,477,417.99 969,783,926.33
financing activities
Net cash flows from financing
-3,208,389,228.40 -396,723,598.27
activities
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-1,290,247,985.70 -199,414,649.81
equivalents
Add: Opening balance of cash and
1,793,207,457.49 996,678,169.38
cash equivalents
VI. Closing balance of cash and cash
502,950,315.92 797,263,519.57
equivalents
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
91
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Unit: RMB
2024 Interim
Equity Attributable to parent Company
Other equity
Gen Non-
instruments Other Spe
Items Share Less: eral Undistrib controlli
Prefe Perp Capital compre cial Surplus Oth Total equity
Capita treasury risk uted Subtotal ng
rred etual Oth reserve hensive rese reserve ers
l shares reser profit interest
share bond ers income rve
ve
s s
I. Balance at 3,732, 1,011,91 10,002,9
3,455,64 423,468, 114,757 17,894,40 169,303, 18,063,707,6
the end of 615,5 4,243.6 42,167.4
3,565.98 591.57 ,064.28 3,984.79 639.57 24.36
prior year 35.00 7 3
Add:
Cumulative
changes of
accounting
policies
Error
correction of
prior period
Business
combination
under
common
control
Others
II. Balance at
3,732, 1,011,91 10,002,9
the beginning 3,455,64 423,468, 114,757 17,894,40 169,303, 18,063,707,6
615,5 4,243.6 42,167.4
of current 3,565.98 591.57 ,064.28 3,984.79 639.57 24.36
35.00 7 3
year
III. Current
period - -
11,950,0 587,889, 147,759,1 47,416,1 195,175,266.
increase (or 257,260, 170,919
85.21 291.25 00.33 66.39 72
less: 587.84 ,517.87
decrease)
(I) Total - 1,514,51 1,343,595 7,150,20 1,350,746,13
comprehensiv 170,919 5,444.75 ,926.88 7.42 4.30
92
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
e income ,517.87
(II) Capital
- - -
contributed or 11,950,0 41,465,9
257,260, 269,210,6 227,744,714.
withdrawn by 85.21 58.97
587.84 73.05 08
owners
1. Ordinary
-
shares 577,662,9 35,103,0 612,765,955.
577,662,
contributed 00.00 55.78 78
900.00
by owners
2. Capital
contributed
by holders of
other equity
instruments
3. Amount of
share-based - -
34,072,7 289,635,
payment 255,562,5 255,562,534.
15.35 250.00
included in 34.65 65
equity
- - -
299,977, 6,362,90
4. Others 291,333, 591,311,0 584,948,135.
735.21 3.19
303.19 38.40 21
- - - -
(III) Profit
926,626, 926,626,1 1,200,00 927,826,153.
distribution
153.50 53.50 0.00 50
1.
Appropriation
of surplus
reserve
2.
Appropriation
of general
risk reserve
3.
- - - -
Appropriation
926,626, 926,626,1 1,200,00 927,826,153.
of profit to
153.50 53.50 0.00 50
owners
4. Others
93
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
(IV) Internal
carry-over
within equity
1. Transfer of
capital
reserve to
capital
2. Transfer of
surplus
reserve to
capital
3. Surplus
reserve to
cover losses
4. Changes in
defined
benefit plan
carried over
to retained
earnings
5. Other
comprehensiv
e income
carried over
to retained
earnings
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
(VI) Others
IV. Balance at 3,732, 3,198,38 435,418, - 1,011,91 10,590,8 18,042,16 216,719, 18,258,882,8
94
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
the end of 615,5 2,978.14 676.78 56,162, 4,243.6 31,458.6 3,085.12 805.96 91.08
current period 35.00 453.59 7 8
Amount of Previous Period
Unit: RMB
2023 Interim
Equity Attributable to parent Company
Other equity
instruments Other Spec Non-
Items Share Less: Gener
Prefe Perpe Capital compreh ial Surplus al risk Undistribute Othe controlling Total equity
Capita treasury reserv d profit Subtotal interest
rred tual Oth reserve ensive reser reserve rs
l shares e
share bond ers income ve
s s
409,
I. Balance at 3,590, - 863,52 12,941,3
544, 282,602, 330,022, 8,133,33 177,989, 13,119,300,1
the end of 869,4 8,543,04 3,059.0 10,409.4
970. 695.98 975.53 6,242.88 781.40 90.82
prior year 65.00 8.33 1 2
41
Add:
Cumulative
changes of
accounting
policies
Error
correction of
prior period
Business
combination
under
common
control
Others
II. Balance at 409,
3,590, - 863,52 12,941,3
the beginning 544, 282,602, 330,022, 8,133,33 177,989, 13,119,300,1
869,4 8,543,04 3,059.0 10,409.4
of current 970. 695.98 975.53 6,242.88 781.40 90.82
65.00 8.33 1 2
year 41
III. Current 1,371, - 87,217,2 - 94,145,9 677,788, 952,088, 6,872,65 958,961,093.
95
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
period 403.0 4,47 28.12 96,038,3 44.13 338.45 443.30 0.41 71
increase (or 0 2,83 60.00
less: decrease) 0.40
(I) Total
94,145,9 1,394,76 1,488,90 19,733,6 1,508,640,45
comprehensiv
44.13 0,848.85 6,792.98 66.88 9.86
e income
(II) Capital -
1,371, -
contributed or 4,47 87,217,2 180,154, 7,090,93 187,245,098.
403.0 96,038,3
withdrawn by 2,83 28.12 160.72 8.20 92
0 60.00
owners 0.40
1. Ordinary
- - -
shares 7,090,93
180,4 1,392,36 1,572,76 7,090,938.20
contributed by 8.20
00.00 0.00 0.00
owners
2. Capital
-
contributed by 1,551,
4,47 33,834,5 30,913,5 30,913,523.7
holders of 803.0 0.00
2,83 51.10 23.70 0
other equity 0
0.40
instruments
3. Amount of
share-based
39,079,8 39,079,8 39,079,881.1
payment 0.00
81.17 81.17 7
included in
equity
-
15,695,1 110,160, 110,160,755.
4. Others 94,465,6 0.00
55.85 755.85 85
00.00
- - - -
(III) Profit
716,972, 716,972, 19,951,9 736,924,465.
distribution
510.40 510.40 54.67 07
1.
Appropriation
0.00 0.00
of surplus
reserve
2.
Appropriation
0.00 0.00
of general risk
reserve
96
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
3.
- - - -
Appropriation
716,972, 716,972, 19,951,9 736,924,465.
of profit to
510.40 510.40 54.67 07
owners
4. Others
(IV) Internal
carry-over
within equity
1. Transfer of
capital reserve
to capital
2. Transfer of
surplus
reserve to
capital
3. Surplus
reserve to
cover losses
4. Changes in
defined
benefit plan
carried over to
retained
earnings
5. Other
comprehensiv
e income
carried over to
retained
earnings
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
97
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
of current
period
(VI) Others
405,
IV. Balance at 3,592, 863,52 13,893,3
072, 369,819, 233,984, 85,602,8 8,811,12 184,862, 14,078,261,2
the end of 240,8 3,059.0 98,852.7
140. 924.10 615.53 95.80 4,581.33 431.81 84.53
current period 68.00 1 2
01
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2024 Interim
Other equity instruments Other Spec
Less:
Items Share Prefer Perpet Capital comprehe ial Surplus Undistribute Oth
treasury Total equity
Capital red ual Others reserve nsive reser reserve d profit ers
shares
shares bonds income ve
I. Balance at the 3,732,6
4,351,276,4 423,468,59 883,822,07 1,768,214,11 10,312,459,
end of prior 15,535.
53.48 1.57 1.35 0.04 578.30
year 00
Add:
Cumulative
changes of
accounting
policies
Error correction
of prior period
Others
II. Balance at 3,732,6
4,351,276,4 423,468,59 883,822,07 1,768,214,11 10,312,459,
the beginning 15,535.
53.48 1.57 1.35 0.04 578.30
of current year 00
III. Current
- -
period increase 11,950,085. 88,624,662.6
250,897,684 174,223,107
(or less: 21 0
.65 .26
decrease)
98
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
(I) Total
1,015,250,81 1,015,250,8
comprehensive
6.10 16.10
income
(II) Capital
- -
contributed or 11,950,085.
250,897,684 262,847,769
withdrawn by 21
.65 .86
owners
1. Ordinary
-
shares 577,662,900
577,662,90
contributed by .00
0.00
owners
2. Capital
contributed by
holders of other
equity
instruments
3. Amount of
share-based -
34,072,715. 289,635,25
payment 255,562,534
35 0.00
included in .65
equity
- -
299,977,73
4. Others 284,970,400 584,948,135
5.21
.00 .21
- -
(III) Profit
926,626,153. 926,626,153
distribution
50 .50
1.
Appropriation
of surplus
reserve
2.
- -
Appropriation
926,626,153. 926,626,153
of profit to
50 .50
owners
3. Others
(IV) Internal
carry-over
99
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
within equity
1.Transfer of
capital reserve
to capital
2.Transfer of
surplus reserve
to capital
3.Surplus
reserve to cover
losses
4. Changes in
defined benefit
plan carried
over to retained
earnings
5. Other
comprehensive
income carried
over to retained
earnings
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
(VI) Others
IV. Balance at 3,732,6
4,100,378,7 435,418,67 883,822,07 1,856,838,77 10,138,236,
the end of 15,535.
68.83 6.78 1.35 2.64 471.04
current period 00
Amount of Previous Period
Unit: RMB
2023 Interim
Items
Share Other equity instruments Capital Other Spec Surplus Othe Total equity
100
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Capital Prefer Perpet reserve Less: comprehen ial reserve rs
Undistribute
red ual Others treasury sive reser
d profit
shares bonds shares income ve
I. Balance at
3,590,86 409,544,97 1,180,826,3 330,022,97 735,430,88 1,335,689,2 6,922,337,98
the end of
9,465.00 0.41 55.13 5.53 6.69 78.94 0.64
prior year
Add:
Cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Balance at
the beginning 3,590,86 409,544,97 1,180,826,3 330,022,97 735,430,88 1,335,689,2 6,922,337,98
of current 9,465.00 0.41 55.13 5.53 6.69 78.94 0.64
year
III. Current
period - - - -
1,371,40 79,575,409.
increase (or 4,472,830. 96,038,360 309,608,618 137,096,276.
3.00 66
less: 40 .00 .46 20
decrease)
(I) Total
407,363,891 407,363,891.
comprehensiv
.94 94
e income
(II) Capital
- -
contributed or 1,371,40 79,575,409. 172,512,342.
4,472,830. 96,038,360
withdrawn by 3.00 66 26
40 .00
owners
1. Ordinary
- - -
shares
180,400. 1,392,360.0 1,572,760.
contributed
00 0 00
by owners
2. Capital -
1,551,80 33,834,551. 30,913,523.7
contributed 4,472,830.
3.00 10 0
by holders of 40
101
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
other equity
instruments
3. Amount of
share-based
39,079,881. 39,079,881.1
payment
17 7
included in
equity
-
8,053,337.3 102,518,937.
4. Others 94,465,600
9 39
.00
- -
(III) Profit
716,972,510 716,972,510.
distribution
.40 40
1.
Appropriation
of surplus
reserve
2.
- -
Appropriation
716,972,510 716,972,510.
of profit to
.40 40
owners
3. Others
(IV) Internal
carry-over
within equity
1.Transfer of
capital
reserve to
capital
2.Transfer of
surplus
reserve to
capital
3.Surplus
reserve to
cover losses
4. Changes in
defined
102
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
benefit plan
carried over
to retained
earnings
5. Other
comprehensiv
e income
carried over
to retained
earnings
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
(VI) Others
IV. Balance at
3,592,24 405,072,14 1,260,401,7 233,984,61 735,430,88 1,026,080,6 6,785,241,70
the end of
0,868.00 0.01 64.79 5.53 6.69 60.48 4.44
current period
103
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
III. Company profile
The Company was established by the original Sanhua Fuji Koki Co., Ltd. The Company currently holds a
business license with a unified social credit code of 913300006096907427 registered and issued by Zhejiang
Administration of Industry and Commerce, with headquarter in Shaoxing City, Zhejiang Province. The registered
capital of 3,732,615,535.00 yuan, total share of 3,732,615,535 shares (each with par value of one yuan). The
Company’s shares were listed at Shenzhen Stock Exchange.
The Company operates in the machinery manufacturing industry. Business scope includes production and
marketing of Service Valve, Electronic Expansion valve, Drainage Pump, Solenoid Valve, One-way Valve,
Compressor Parts, Pressure Pipeline Components, Electromechanical Hydraulic Control Pump and other
electromechanical hydraulic control components, undertaking services of inspection, test and analysis of
refrigeration accessories, and engaging in import and export business. Main products include control components
and parts of household appliances and automobile A/C.
The Company operates in the machinery manufacturing industry, main business activities include research
and development, production and sales of refrigeration and air-conditioning appliances and automotive
components.
This financial statement has been approved for external disclosure by the 26th extraordinary board of
directors of the company on August 28, 2024.
104
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. Going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to
continue as a going concern within the 12 months after the balance sheet date.
V. Significant accounting policies and estimates
Tips on specific accounting policies and accounting estimates:
The Company has set up accounting policies and estimates on transactions or events such as impairment of
financial instruments, inventories, depreciation of fixed assets, construction in progress, intangible assets, revenue
recognition, share-based payment,etc., based on the Company’s actual production and operation features.
1.Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of China Accounting
Standards for Business Enterprises (CASBEs), and present truly and completely the financial position, results of
operations and cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as
current if it is expected to be realized or due within 12 months.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan, while the
functional currency of subsidiaries engaged in overseas operations including SANHUA AWECO Appliance
Systems GmbH、Sanhua International Inc etc. is the currency of the primary economic environment in which
they operate.
105
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
5. Determination method and basis for selection of materiality
√ Applicable □Not Applicable
items Materiality criteria
Individual accruals accounting for more than 5% of
Significant accounts receivable with provision for bad the total bad debt provision for all types of accounts
debts made on an individual basis receivable and amounting to more than 30 million
yuan are considered significant.
Individual accruals accounting for 5% or more of the
Significant other receivables with provision for bad total bad debt provision for each category of other
debts made on an individual basis receivables and amounting to more than 20 million
yuan are considered significant.
The budget for a single project is more than 500
Significant construction in progress
million yuan.
A single investing activity that accounts for more than
5% of the total cash inflows or outflows related to the
Significant cash flows from investing activities receipt or disbursement of cash related to investing
activities and is greater than 50 million yuan is
considered to be significant.
Subsidiaries with total assets/total revenue/profit
before tax in excess of 15% of the group’s total
Significant subsidiaries, not wholly-owned
assets/total revenue/profit before tax are identified as
subsidiaries
significant subsidiaries/significant not wholly-owned
subsidiaries.
Significant joint ventures, associates and joint Joint ventures or associates with total assets exceeding
operations 1 billion yuan are considered significant.
Project matters in which the Company is involved in
Significant commitments
fundraising are considered significant.
Distribution of profit after the balance sheet date,
Significant events subsequent to the balance sheet date
significant financing, etc.
6. Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined
party included in the consolidated financial statements of the ultimate controlling party at the combination date.
Difference between carrying amount of the equity of the combined party included in the consolidated financial
statements of the ultimate controlling party and that of the combination consideration or total par value of shares
issued is adjusted to capital reserve, if the balance of capital reserve is insufficient to offset, any excess is adjusted
to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value share of identifiable net assets obtained from the
acquiree at the acquisition date, the excess is recognized as goodwill; If the combination cost is less than the fair
value share of identifiable net assets obtained from the acquiree, the fair value of the identifiable assets, liabilities,
and contingent liabilities obtained from the acquiree, as well as the measurement of the combination cost, need to
be reviewed at first. After review, if the combination cost is still less than the fair value share of the identifiable
net assets obtained from the acquiree , the difference is recognized in profit or loss.
106
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
7. Judgement criteria for control and compilation method of consolidated financial statements
1.Judgement of control
Having the power over the invested party, enjoying variable returns through participating in related activities
of the invested party, and having the ability to use the power over the invested party to influence its variable return
amount, is recognized as control.
2. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated
financial statements are compiled by the parent company according to “CASBE 33 – Consolidated Financial
Statements”, based on relevant information and the financial statements of the parent company and its
subsidiaries.
8. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash
equivalents refer to short-term, highly liquid investments that can be readily converted to cash and that are subject
to an insignificant risk of changes in value.
9. Foreign currency transactions and foreign currency statement translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate or the
approximate exchange rate similar to the spot exchange rate at the transaction date at initial recognition. At the
balance sheet date, monetary items denominated in foreign currency are translated at the spot exchange rate at the
balance sheet date with difference, except for those arising from the principal and interest of exclusive borrowings
eligible for capitalization, included in profit or loss; non-cash items carried at historical costs are translated at the
spot exchange rate at the transaction date, with its RMB amount unchanged; non-cash items carried at fair value in
foreign currency are translated at the spot exchange rate at the date when the fair value was determined, with
difference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated at the spot rate at the balance sheet date; the
equity items, other than undistributed profit, are translated at the spot rate at the transaction date; the revenues and
expenses in the income statement are translated at the approximate exchange rate similar to the systematically and
rationally determined spot exchange rate at the transaction date. The difference arising from foreign currency
translation is included in other comprehensive income.
10．Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1) financial
assets at amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets
107
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
at fair value through profit or loss.
Financial liabilities are classified into the following four categories when initially recognized: (1) financial
liabilities at fair value through profit or loss; (2) financial liabilities that arise when a transfer of a financial asset
does not qualify for derecognition or when the continuing involvement approach applies; (3) financial guarantee
contracts not fall within the above categories (1) and (2), and commitments to provide a loan at a below-market
interest rate, which do not fall within the above category (1); (4) financial liabilities at amortized cost.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial
liabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or
financial liability. The financial assets and financial liabilities initially recognized by the Company are measured
at fair value; for the financial assets and liabilities at fair value through profit or loss, the transaction expenses
thereof are directly included in profit or loss; for other categories of financial assets and financial liabilities, the
transaction expenses thereof are included into the initially recognized amount. However, at initial recognition, for
accounts receivable that do not contain a significant financing component or in circumstances where the Company
does not consider the financing components in contracts within one year, the Company measures the transaction
price in accordance with “CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized costs
The Company measures its financial assets at the amortized costs using effective interest method. Gains or
losses on financial assets that are measured at amortized cost and are not part of hedging relationships shall be
included into profit or loss when the financial assets are derecognized, reclassified, through the amortization
process or in order to recognize impairment gains or losses.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests, impairment losses or gains,
and gains and losses on foreign exchange that calculated using effective interest method shall be included into
profit or loss, while other gains or losses are included into other comprehensive income. Accumulated gains or
losses that initially recognized as other comprehensive income should be transferred out into profit or loss when
the financial assets are derecognized.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than those
as part of investment cost recovery) shall be included into profit or loss, while other gains or losses are included
into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive
income should be transferred out into retained earnings when the financial assets are derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value
(including interests and dividends) shall be included into profit or loss, except for financial assets that are part of
hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including
derivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. The
Company measures such kind of liabilities at fair value. The amount of changes in the fair value of the financial
liabilities that are attributable to changes in the Company’s own credit risk shall be included into other
108
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
comprehensive income, unless such treatment would create or enlarge accounting mismatches in profit or loss.
Other gains or losses on those financial liabilities (including interests, changes in fair value that are attributable to
reasons other than changes in the Company’s own credit risk) shall be included into profit or loss, except for
financial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognized as
other comprehensive income should be transferred out into retained earnings when the financial liabilities are
derecognized.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or
when the continuing involvement approach applies
The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial
Assets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments to provide a
loan at a below-market interest rate, which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in
accordance with impairment requirements of financial instruments; b. the amount initially recognized less the
amount of accumulated amortization recognized in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or
losses on financial liabilities that are measured at amortized cost and are not part of hedging relationships shall be
included into profit or loss when the financial liabilities are derecognized and amortized using effective interest
method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire;
b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with
“CASBE 23 – Transfer of Financial Assets”.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the
financial liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the
financial asset, it derecognizes the financial asset, and any right or liability arising from such transfer is
recognized independently as an asset or a liability. If it retained substantially all of the risks and rewards related to
the ownership of the financial asset, it continues recognizing the financial asset. Where the Company does not
transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset, it is dealt
with according to the circumstances as follows respectively: (1) if the Company does not retain its control over the
financial asset, it derecognizes the financial asset, and any right or liability arising from such transfer is
recognized independently as an asset or a liability; (2) if the Company retains its control over the financial asset,
according to the extent of its continuing involvement in the transferred financial asset, it recognizes the related
financial asset and recognizes the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the
amounts of the following two items is included in profit or loss: (1) the carrying amount of the transferred
financial asset as of the date of derecognition; (2) the sum of consideration received from the transfer of the
financial asset, and the accumulative amount of the changes of the fair value originally included in other
comprehensive income proportionate to the transferred financial asset (financial assets transferred refer to debt
instrument investments at fair value through other comprehensive income). If the transfer of financial asset
109
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
partially satisfies the conditions to derecognition, the entire carrying amount of the transferred financial asset is,
between the portion which is derecognized and the portion which is not, apportioned according to their respective
relative fair value, and the difference between the amounts of the following two items is included into profit or
loss: (1) the carrying amount of the portion which is derecognized; (2) the sum of consideration of the portion
which is derecognized, and the portion of the accumulative amount of the changes in the fair value originally
included in other comprehensive income which is corresponding to the portion which is derecognized (financial
assets transferred refer to debt instrument investments at fair value through other comprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data and information are available to measure fair value. The inputs to valuation techniques used to measure fair
value are arranged in the following hierarchy and used accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the
Company can access at the measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in
active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other
than quoted prices that are observable for the asset or liability, for example, interest rates and yield curves
observable at commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is
not observable and cannot be corroborated by observable market data at commonly quoted intervals, historical
volatility, future cash flows to be paid to fulfill the disposal obligation assumed in business combination, financial
forecast developed using the Companys own data, etc.
5. Impairment of financial instruments
The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets at
amortized cost, debt instrument investments at fair value through other comprehensive income, contract assets,
leases receivable, loan commitments other than financial liabilities at fair value through profit or loss, financial
guarantee contracts not belong to financial liabilities at fair value through profit or loss or financial liabilities that
arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement
approach applies.
Expected credit losses refer to the weighted average of credit losses with the respective risks of a default
occurring as the weights. Credit loss refers to the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash
shortfalls), discounted at the original effective interest rate. Among which, purchased or originated credit-impaired
financial assets are discounted at the credit-adjusted effective interest rate.
At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expected
credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial
assets.
For leases receivable, and accounts receivable and contract assets resulting from transactions regulated in
“CASBE 14 – Revenues”, the Company chooses simplified approach to measure the loss allowance at an amount
equal to lifetime expected credit losses.
For financial assets other than the above, on each balance sheet date, the Company shall assess whether the
credit risk on the financial instrument has increased significantly since initial recognition. The Company shall
measure the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses if
the credit risk on that financial instrument has increased significantly since initial recognition; otherwise, the
110
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Company shall measure the loss allowance for that financial instrument at an amount equal to 12-month expected
credit loss.
Considering reasonable and supportable forward-looking information, the Company compares the risk of a
default occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on the
financial instrument as at the date of initial recognition, so as to assess whether the credit risk on the financial
instrument has increased significantly since initial recognition.
The Company may assume that the credit risk on a financial instrument has not increased significantly since
initial recognition if the financial instrument is determined to have relatively low credit risk at the balance sheet
date.
The Company shall estimate expected credit risk and measure expected credit losses on an individual or a
collective basis. When the Company adopts the collective basis, financial instruments are grouped with similar
credit risk features.
The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversed
amounts of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains. For
a financial asset measured at amortized cost, the loss allowance reduces the carrying amount of such financial
asset presented in the balance sheet; for a debt investment measured at fair value through other comprehensive
income, the loss allowance shall be recognized in other comprehensive income and shall not reduce the carrying
amount of such financial asset.
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset.
However, the Company offsets a financial asset and a financial liability and presents the net amount in the balance
sheet when, and only when, the Company: (1) currently has a legally enforceable right to set off the recognized
amounts; and (2) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset the
transferred asset and the associated liability.
Recognition criteria and accrual method for expected credit losses of receivables and contract assets
1. Receivables and contract assets with expected credit losses measured on a collective basis using similar
credit risk features
Basis for
Categories determination of Method for measuring expected credit loss
portfolio
Notes receivable-Bank
acceptance receivable Based on historical credit loss experience, the current
situation and the forecast of future economic
Notes receivable -Trade
Type of notes conditions, the Company calculates expected credit
acceptance receivable
loss through exposure at default and lifetime expected
Notes receivable -finance credit loss rate.
company
Based on historical credit loss experience, the current
situation and the forecast of future economic
Accounts receivable –
Aging conditions, the Company prepares the comparison
Portfolio grouped with aging
table of accounts receivable ages and lifetime expected
credit loss rate, so as to calculate expected credit loss.
Based on historical credit loss experience, the current
situation and the forecast of future economic
Other receivable – Portfolio
Aging conditions, the Company prepares the comparison
grouped with aging
table of other receivable ages and lifetime expected
credit loss rate , so as to calculate expected credit loss.
2.Accounts receivable – comparison table of aging and lifetime expected credit loss rate of portfolio grouped
111
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
with aging.
Aging Expected credit loss rate (%)
Within 1 year 5
1-2 years 10
2-3 years 30
Over 3 years 50
Aging of accounts receivable/other receivables/… are calculated from the month when such receivables are
accrued.
3.Recognition criteria for receivables and contract assets with expected credit losses measured on an
individual basis
For receivables and contract assets whose credit risk is significantly different from that of portfolios, the
Company accrues expected credit losses on an individual basis.
11．Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process
in the process of production, materials or supplies etc., to be consumed in the production process or in the
rendering of services.
2. Accounting method for dispatching inventories
Inventories dispatched from storage are accounted for with weighted average method or specific
identification method at the end of each month.
3. Basis for determining net realizable value
At the balance sheet date, inventories are measured at the lower of cost or net realizable value; provisions for
inventory write-down are made on the excess of its cost over the net realizable value.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method of low-value consumables and packages
Low-value consumables and packages are amortized with one-off method at the time of purchase or receipt.
12．Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant
influence is the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it
makes payment in cash, transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of
combination, it regards the share of the carrying amount of the equity of the combined party included the
consolidated financial statements of the ultimate controlling party as the initial cost of the investment. The
difference between the initial cost of the long-term equity investments and the carrying amount of the combination
consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
112
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
insufficient to offset, any excess is adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at the
acquisition-date fair value of considerations paid.
(3) Long-term equity investments obtained through ways other than business combination, the initial cost of
a long-term equity investment obtained by making payment in cash is the purchase cost which is actually paid.
3. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method; for long-
term equity investments of associated enterprises and cooperative enterprises, it is accounted for with equity
method.
13. Investment property
Measurement model of investment property
Cost method measurement
Depreciation or amortization method
1. Investment property includes land use right of leased-out property and of property held for capital
appreciation and buildings that have been leased out.
2. The initial measurement of investment property is based on its cost, and subsequent measurement is made
using the cost model, the depreciation or amortization method is the same as that of fixed assets and intangible
assets.
14. Fixed assets
（1）Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental to
others, or for administrative purposes, and expected to be used during more than one accounting year. Fixed assets
are recognized if, and only if, it is probable that future economic benefits associated with the assets will flow to
the Company and the cost of the assets can be measured reliably.
（2）Depreciation method of different categories of fixed assets
Categories Depreciation Estimated residual Annual depreciation
Useful life (years)
method value proportion (%) rate (%)
Buildings and Straight-line
20-30 0-5 3.17～5.00
structures method
Machinery and Straight-line
5-12 0-5 7.92～20.00
equipment method
Measurement Straight-line
5-10 0-5 9.50～19.00
analysis equipment method
Straight-line
Vehicle 5-8 0-5 11.88～20.00
method
Office equipment Straight-line
5-8 0-5 11.88～20.00
and others method
113
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
15．Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits
associated with the item will flow to the Company, and the cost of the item can be measured reliably. Construction
in progress is measured at the actual cost incurred to reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed
usable conditions. When the auditing of the construction in progress was not finished while reaching the designed
usable conditions, it is transferred to fixed assets using estimated value first, and then adjusted accordingly when
the actual cost is settled, but the accumulated depreciation is not to be adjusted retrospectively.
Categories Standards and time point of transferring construction in progress to fixed assets
Machinery After installation and commissioning, it meets the standard of production
After installation and commissioning, the construction is completed and accepted to
Houses and buildings
meet the commissioning standards
16．Borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization, it is capitalized and included in the costs of relevant
assets; other borrowing costs are recognized as expenses on the basis of the actual amount incurred, and are
included in profit or loss.
17．Intangible assets
(1) Service life and its basis for determination, estimate, amortization method or review procedure
1.Intangible assets include land use right, land ownership, application software and intellectual property etc.
The initial measurement of intangible assets is based on its cost.
2. For intangible assets with finite useful lives, their amortization amounts are amortized within their useful
lives systematically and reasonably, if it is unable to determine the expected realization pattern reliably, intangible
assets are amortized by the straight-line method with details .as follows:
Items Useful life and determination basis Amortization method
Land use rights fifty years,Contractual service life Straight-line method
Application software 1-4,Useful life Straight-line method
Intellectual property 5-10,Useful life Straight-line method
Intangible assets with indefinite useful life are not amortized, but their useful life is reviewed annually. The
indefinite land ownership held by overseas subsidiaries abroad is not amortized due to uncertain service life.
3.R&D costs
The collection of R&D costs is directly related to the R&D activities of enterprises, including R&D
personnel salaries, R&D materials, depreciation and amortization expenses, technical cooperation fees, evaluation
and testing fees, etc. The costs incurred during the research phase of internal R&D projects are recognized in the
current period's profit and loss when incurred. Expenditures on the research phase of an internal project are
recognized as profit or loss when they are incurred. An intangible asset arising from the development phase of an
internal project is recognized if the Company can meet relevant conditions.
114
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
18．Impairment of part of long-term assets
For long-term assets such as long-term equity investments, investment property at cost model, fixed assets,
construction in progress, right-of-use assets, intangible assets with finite useful lives, etc., if at the balance sheet
date there is indication of impairment, the recoverable amount is to be estimated. For goodwill recognized in
business combination and intangible assets with indefinite useful lives, no matter whether there is indication of
impairment, impairment test is performed annually. Impairment test on goodwill is performed on related asset
group or asset group portfolio.
When the recoverable amount of such long-term assets is lower than their carrying amount, the difference is
recognized as provision for assets impairment through profit or loss.
19．Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year
(excluding one year). They are recorded with actual cost, and evenly amortized within the beneficiary period or
stipulated period. If items of long-term prepayments fail to be beneficial to the following accounting periods,
residual values of such items are included in profit or loss.
20．Employee benefits
1. Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-term
employee benefits actually incurred as liabilities, with a corresponding charge to profit or loss or the cost of a
relevant asset.
2. Post-employment benefits
Post-employment benefit plans are mainly classified as defined contribution plans. During the accounting
period employees provide services, according the defined contribution plan, the amount payable is recognized as
liabilities and included in the current profits and losses or relevant asset costs.
3. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability, with a
corresponding charge to profit or loss at the earlier of the following dates: (1) when the Company cannot
unilaterally withdraw the offer of termination benefits because of an employment termination plan or a
curtailment proposal; (2) when the Company recognizes cost or expenses related to a restructuring that involves
the payment of termination benefits.
4. Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as
a defined contribution plan, those benefits are accounted for in accordance with the requirements relating to
defined contribution plan, while other benefits are accounted for in accordance with the requirements relating to
defined benefit plan. The Company recognizes the cost of employee benefits arising from other long-term
employee benefits as the followings: (1) service cost; (2) net interest on the net liability or net assets of other long-
term employee benefits; and (3) changes as a result of remeasurement of the net liability or net assets of other
long-term employee benefits. As a practical expedient, the net total of the aforesaid amounts is recognized in
profit or loss or included in the cost of a relevant asset.
115
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
21．Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as
providing guarantee for other parties, litigation, products quality guarantee, onerous contract, etc., may cause the
outflow of the economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling
the present obligations, and its carrying amount is reviewed at the balance sheet date.
22．Share-based payment
1. Types of share-based payment
Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.
2. Accounting treatment for settlements, modifications and cancellations of share-based payment terms and
conditions
(1) Equity-settled share-based payment
For equity-settled share-based payment transaction with employees, if the equity instruments granted vest
immediately, the fair value of those equity instruments is measured at grant date and recognized as transaction
cost or expense, with a corresponding adjustment in capital reserve; if the equity instruments granted do not vest
until the counterparty completes a specified period of service, at the balance sheet date within the vesting period,
the fair value of those equity instruments measured at grant date based on the best estimate of the number of
equity instruments expected to vest is recognized as transaction cost or expense, with a corresponding adjustment
in capital reserve.
For equity-settled share-based payment transaction with parties other than employees, if the fair value of the
services received can be measured reliably, the fair value is measured at the date the Company receives the
service; if the fair value of the services received cannot be measured reliably, but that of equity instruments can be
measured reliably, the fair value of the equity instruments granted measured at the date the Company receives the
service is referred to, and recognized as transaction cost or expense, with a corresponding increase in equity.
(2) Cash-settled share-based payment
For cash-settled share-based payment transactions with employees, if share appreciation rights vest
immediately, the fair value of the liability incurred as the acquisition of goods or services is measured at grant date
and recognized as transaction cost or expense, with a corresponding increase in liabilities; if share appreciation
rights do not vest until the employees have completed a specified period of service, the liability is measured, at
each balance sheet date until settled, at the fair value of the share appreciation rights measured at grant date based
on the best estimate of the number of share appreciation right expected to vest.
(3) Modifications and cancellations of share-based payment terms and conditions
If the modification increases the fair value of the equity instruments granted, measured immediately before
and after the modification, the Company includes the incremental fair value granted in the measurement of the
amount recognized for services received as consideration for the equity instruments granted; similarly, if the
modification increases the number of equity instruments granted, the Company includes the fair value of the
additional equity instruments granted, measured at the date of the modification, in the measurement of the amount
recognized for services received as consideration for the equity instruments granted; if the Company modifies the
vesting conditions in a manner that is beneficial to the employee, the Company takes the modified vesting
conditions into account.
If the modification reduces the fair value of the equity instruments granted, measured immediately before
116
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
and after the modification, the Company does not take into account that decrease in fair value and continue to
measure the amount recognized for services received as consideration for the equity instruments based on the
grant date fair value of the equity instruments granted; if the modification reduces the number of equity
instruments granted to an employee, that reduction is accounted for as a cancellation of that portion of the grant; if
the Company modifies the vesting conditions in a manner that is not beneficial to the employee, the Company
does not take the modified vesting conditions into account.
If the Company cancels or settles a grant of equity instruments during the vesting period (other than a grant
cancelled by forfeiture when the vesting conditions are not satisfied), the Company accounts for the cancellation
or settlement as an acceleration of vesting, and therefore recognizes immediately the amount that otherwise would
have been recognized for services received over the remainder of the vesting period.
23．Revenue
Disclosure of accounting policies used for revenue recognition and measurement according to transaction type
1. Revenue recognition principles
At contract inception, the Company shall assess the contracts and shall identify each performance obligation
in the contracts, and determine whether the performance obligation should be satisfied over time or at a point in
time.
The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise,
the performance obligation is satisfied at a point in time: (1) the customer simultaneously receives and consumes
the benefits provided by the Company’s performance as the Company performs; (2) the customer can control
goods or services as they are created by the Company’s performance; (3) the Company’s performance does not
create goods or services with an alternative uses and the Company has an enforceable right to payment for
performance completed to date.
For each performance obligation satisfied over time, the Company shall recognize revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. In the circumstance that the
progress cannot be measured reasonably, but the costs incurred in satisfying the performance obligation are
expected to be recovered, the Company shall recognize revenue only to the extent of the costs incurred until it can
reasonably measure the progress. For each performance obligation satisfied at a point in time, the Company shall
recognize revenue at the time point that the customer obtains control of relevant goods or services. To determine
whether the customer has obtained control of goods, the Company shall consider the following indicators: (1) the
Company has a present right to payment for the goods, i.e., the customer is presently obliged to pay for the goods;
(2) the Company has transferred the legal title of the goods to the customer, i.e., the customer has legal title to the
goods; (3) the Company has transferred physical possession of the goods, i.e., the customer has physically
possessed the goods; (4) the Company has transferred significant risks and rewards of ownership of the goods,
i.e., the customer has obtained significant risks and rewards of ownership of the goods; (5) the customer has
accepted the goods; (6) other indicators showing the customer has obtained control over the goods.
2.Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each performance
obligation. The transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties
and those expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount, the Company shall confirm the
best estimate of variable consideration at expected value or the most likely amount. However, the transaction price
117
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
that includes the amount of variable consideration only to the extent that it is high probable that a significant
reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the
variable consideration is subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component, the Company shall
determine the transaction price based on the price that a customer would have paid for if the customer had paid
cash for obtaining control over those goods or services. The difference between the transaction price and the
amount of promised consideration is amortized under effective interest method over contractual period. The
effects of a significant financing component shall not be considered if the Company expects, at the contract
inception, that the period between when the customer obtains control over goods or services and when the
customer pays consideration will be one year or less.
(4) For contracts containing two or more performance obligations, the Company shall determine the stand-
alone selling price at contract inception of the distinct good underlying each performance obligation and allocate
the transaction price to each performance obligation on a relative stand-alone selling price basis.
3. Revenue recognition method
The company's main business activities are the R&D, production and sales of control components and parts
of household appliances and automobiles, which belong to the performance obligations at a certain point in time.
The revenue from domestic sales of products shall be recognized based on sales contracts, settlement
vouchers (delivery or usage),and other documents upon completion of product delivery; and the revenue from
export of products shall be recognized according to the sales contract, customs declaration form, bill of lading,
and other documents upon completion of customs declaration and export. The sales revenue of metal scrap is
recognized after weighing and picking up the goods and obtaining the receipt certificate.
The situation where similar businesses adopt different business models involving different revenue
recognition and measurement methods.
24．Costs of obtaining a contract and costs to fulfill a contract
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs are
expected to be recovered. The costs of obtaining a contract shall be included into profit or loss when incurred if
the amortization period of the asset is one year or less.
If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories, fixed
assets or intangible assets, etc., the Company shall recognize the costs to fulfill a contract as an asset if all the
following criteria are satisfied:
1. The costs relate directly to a contract or to an anticipated contract, including direct labor, direct materials,
manufacturing overhead cost (or similar cost), cost that are explicitly chargeable to the customer under the
contract, and other costs that are only related to the contract;
2. The costs enhance resources of the Company that will be used in satisfying performance obligations in
the future;
3. The costs are expected to be recovered.
An asset related to contract costs shall be amortized on a systematic basis that is consistent with related
goods or services, with amortization included into profit or loss.
The Company shall make provision for impairment and recognize an impairment loss to the extent that the
carrying amount of an asset related to contract costs exceeds the remaining amount of consideration that the
Company expects to receive in exchange for the goods or services to which the asset relates less the costs
expected to be incurred. The Company shall recognize a reversal of an impairment loss previously recognized in
118
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
profit or loss when the impairment conditions no longer exist or have improved. The carrying amount of the asset
after the reversal shall not exceed the amount that would have been determined on the reversal date if no provision
for impairment had been made previously.
25．Contract assets, contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship
between its performance obligations and customers’ payments. Contract assets and contract liabilities under the
same contract shall offset each other and be presented on a net basis.
The Company presents an unconditional right to consideration (i.e., only the passage of time is required
before the consideration is due) as a receivable, and presents a right to consideration in exchange for goods that it
has transferred to a customer (which is conditional on something other than the passage of time) as a contract
asset.
The Company presents an obligation to transfer goods to a customer for which the Company has received
consideration (or the amount is due) from the customer as a contract liability.
26．Government grants
1. Government grants shall be recognized if, and only if, the following conditions are all met: (1) the
Company will comply with the conditions attaching to the grants; (2) the grants will be received. Monetary
government grants are measured at the amount received or receivable. Non-monetary government grants are
measured at fair value, and can be measured at nominal amount in the circumstance that fair value can’t be
assessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company construct or otherwise
acquire long-term assets under requirements of government. In the circumstances that there is no specific
government requirement, the Company shall determine based on the primary condition to acquire the grants and
government grants related to assets are government grants whose primary condition is to construct or otherwise
acquire long-term assets. They offset carrying amount of relevant assets or recognized as deferred income. If
recognized as deferred income, they are included in profit or loss on a systematic basis over the useful lives of the
relevant assets. Those measured at notional amount is directly included into profit or loss. For assets sold,
transferred, disposed or damaged within the useful lives, balance of unamortized deferred income is transferred
into profit or loss of the year in which the disposal occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. For
government grants that contain both parts related to assets and parts related to income, in which those two parts
are blurred and thus collectively classified as government grants related to income. For government grants related
to income used for compensating the related future cost, expenses or losses of the Company are recognized as
deferred income and are included in profit or loss or offset relevant cost during the period in which the relevant
cost, expenses or losses are recognized; for government grants related to income used for compensating the
related cost, expenses or losses incurred to the Company, they are directly included in profit or loss or directly
offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or offset
119
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
relevant cost based on business nature, while those not related to the ordinary course of business shall be included
into non-operating revenue or expenditures.
5. Policy interest subvention
(1) In the circumstance that government appropriates interest subvention to lending bank, who provides
loans for the Company with a policy subsidised interest rate, borrowings are carried at the amount received, with
relevant borrowings cost computed based on the principal and the policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company, the
subsidised interest shall offset relevant borrowing cost.
27．Deferred tax assets/Deferred tax liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference
between the carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and
tax base of items not recognized as assets and liabilities but with their tax base being able to be determined
according to tax laws) and in accordance with the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely
to obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there
is any exact evidence that it is probable that future taxable income will be available against which deductible
temporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will be
available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to
the extent that it becomes probable that sufficient taxable income will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit
or loss, excluding those arising from the following circumstances: (1) business combination; and (2) the
transactions or items directly recognized in equity.
5.Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net basis when
the following conditions are all met: (1) the Company has the legal right to settle off current tax assets against
current tax liabilities; (2) Deferred income tax assets and deferred income tax liabilities are related to the income
tax levied by the same tax administration department on the same taxpayer or related to the same tax
administration department for different taxpayers. However, in each period during which significant deferred
income tax assets and deferred income tax liabilities are reversed in the future, the taxpayer involved intends to
settle the current income tax assets and liabilities on a net basis or simultaneously acquire assets and settle debts.
28. Leases
1. The Company as lessee
At the commencement date, the Company recognizes a lease that has a lease term of 12 months or less as a
short-term lease, which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-
value asset if the underlying asset is of low value when it is new.
For all short-term leases and leases of low-value assets, lease payments are recognized as cost or profit or loss
120
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
with straight-line method over the lease term.
Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach, the
Company recognizes right-of-use assets and lease liabilities at the commencement date.
(1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement
of the lease liabilities; 2) any lease payments made at or before the commencement date, less any lease incentives
received; 3) any initial direct costs incurred by the lessee; and 4) an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying
asset to the condition required by the terms and conditions of the lease.
The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be certain
that the ownership of the underlying asset can be acquired by the end of the lease term, the Company depreciates
the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise,
the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful
life of the right-of-use asset or the end of the lease term.
(2) Lease liabilities
At the commencement date, the Company measures the lease liability at the present value of the lease payments
that are not paid at that date, discounted using the interest rate implicit in the lease.Unrecognized financing expenses,
calculated at the difference between the lease payment and its present value, are recognized as interest expenses
over the lease term using the discount rate which has been used to determine the present value of lease payment and
included in profit or loss. Variable lease payments not included in the measurement of lease liabilities are included
in profit or loss in the periods in which they are incurred.
2.The Company as lessor
At the commencement date, the Company classifies a lease as a finance lease if it transfers substantially all the
risks and rewards incidental to ownership of an underlying asset. Otherwise, it is classified as an operating lease.
For operating lease,lease receipts are recognized as lease income with straight-line method over the lease
term. Initial direct costs incurred shall be capitalized, amortized on the same basis as the recognition of lease
income, and included into profit or loss by installments. Variable lease payments related to operating lease which
are not included in the lease payment are charged as profit or loss in the periods in which they are incurred.
29. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization,
management requirements and internal reporting system. An operating segment is a component of the Company:
1. That engages in business activities from which it may earn revenues and incur expenses;
2. Whose financial performance is regularly reviewed by the Management to make decisions about resource
121
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
to be allocated to the segment and to assess its performance;
3. For which accounting information regarding financial position, financial performance and cash flows is
available through analysis.
30. Share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding its
employees. The amount actually paid shall be treated as treasury stock and registered for future reference at the
same time. If the purchased shares are to be retired, the difference between the total book value of shares retired
and the cash distributed to existing shareholders for repurchase is to reduce capital reserve, or retained earnings
when the capital reserve is not enough to reduce. If the Company repurchases vested equity instruments in equity-
settled share-based payment transactions with employees, cost of treasury shares granted to employees and capital
reserve (other capital reserve) accumulated within the vesting period are to be written off on the payment made to
employees, with a corresponding adjustment in capital reserve (share premium).
31. Changes in significant accounting policies and accounting estimates
(1) Implement the relevant regulations of Interpretation of China Accounting Standards for Business
Enterprises No. 17
On October 25, 2023, the Ministry of Finance issued Interpretation No. 17 of the China Accounting
Standards for Business Enterprises (Finance and Accounting [2023] No. 21) (hereinafter referred to as
"Interpretation No. 17"), which will come into effect on January 1, 2024. Our company will implement the
provisions of Interpretation No. 17 from January 1, 2024. The relevant provisions of Interpretation No. 17 have no
significant impact on the financial statements of our company during the reporting period.
A:Classification of current liabilities and non current liabilities
Our company will implement this regulation from January 1, 2024, and its implementation will not have a
significant impact on the company.
B:Disclosure of Supplier Financing Arrangements
Our company will implement this regulation from January 1, 2024, and its implementation will not have a
significant impact on the company.
C:Accounting treatment of post-sale leaseback transactions
Our company will implement this regulation from January 1, 2024, and its implementation will not have a
significant impact on the company.
(2) Reclassification of warranty fees for guarantee category
The finance department released the "Compilation of Application Guidelines for Enterprise Accounting
Standards 2024" in March 2024, which stipulates that warranty fees should be included in operating costs.
Our company will implement this regulation from January 1, 2024, and reclassify the warranty expenses that
were originally included in sales expenses for each reporting period into operating costs.
This accounting policy change will affect the "operating costs" and "sales expenses" in the company's income
122
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
statement, but will not affect the company's "operating revenue" and "operating profit", and will not have a
significant impact on the company's financial condition and operating results. The impact of this accounting
policy change on the financial statements for the first half of 2023 is as follows:
Income Statement for January June 2023
Report project
Amount before adjustment Correction of affected amount Amount after adjustment
consolidated Income Statement
Operating costs 9,295,615,081.75 13,045,834.52 9,308,660,916.27
selling expenses 277,177,564.79 -13,045,834.52 264,131,730.27
Income Statement of the Parent Company
Operating costs 2,625,734,196.14 697,108.08 2,626,431,304.22
selling expenses 16,652,349.86 -697,108.08 15,955,241.78
Ⅵ. Taxes
1. Major categories of taxes and tax rates
Tax Type Taxation basis Tax rate
Enterprise income tax Taxable income 15%，25%
The output tax calculated based on the revenue from sales
of goods or rendering of services in accordance with the 13%，9%，
Value-added tax (VAT)
tax law, net of the input tax that is allowed to be deducted 6%
in the current period
For housing property levied on the basis of price, housing
property tax is levied at the rate of 1.2% of the balance
Housing property tax after deducting 30% of the cost; for housing property 12%,1.2%
levied on the basis of rent, housing property tax is levied
at the rate of 12% of lease income
Urban maintenance and
Turnover tax actually paid 7%，5%
construction tax
Education surcharge Turnover tax actually paid 3%
Local education surcharge Turnover tax actually paid 2%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
Zhejiang Sanhua Intelligent Controls Co., Ltd 15%
Zhejiang Sanhua Commercial Refrigeration Co. Ltd 15%
Sanhua (hangzhou) Micro Channel Heat Exchanger Co., Ltd 15%
Zhejiang Sanhua Automotive Components Co., Ltd. 15%
Shaoxing Sanhua New Energy Automotive Components Co., 15%
Ltd
Wuhu Sanhua Auto-control Components Co., Ltd and other 15%
subsidiaries
Domestic taxpayers other than the above-mentioned 25%
123
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
2. Tax preferential policies
The company and several subsidiaries can enjoy tax incentives for high-tech enterprises, and the final
settlement and payment shall prevail.
Export goods enjoy the VAT exemption and refund policy; the exceeding portion over the 3% VAT payable of
the certified software products enjoy the immediate refund policy; several subsidiaries are welfare enterprises, and
value-added tax enjoys the preferential policy of immediate collection and refund of the "employment quota for
disabled persons".
3. Others
The overseas subsidiary shall be subject to the tax regulations of its host country.
124
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Ⅶ. Notes to Items in the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB
Items Closing balance Opening balance
Cash on hand 611,537.90 291,216.13
Cash in bank 5,171,938,336.92 6,507,907,610.98
Other cash and bank balances 50,333,557.34 76,485,856.82
Total 5,222,883,432.16 6,584,684,683.93
Including: Deposited overseas 964,008,405.86 510,550,872.27
Other remarks:
As of June 30, 2024, bank deposits containing large deposit certificates with fixed interest rates amounted to
2597.0668 million yuan.
2. Held-for-trading financial assets
Unit: RMB
Items Closing balance Opening balance
Financial assets at fair value through profit
100,000,000.00
or loss
Including:
Financial products 100,000,000.00
Including:
Total 100,000,000.00
3. Derivative Financial Assets
Unit: RMB
Items Closing balance Opening balance
Foreign exchange tool 7,171,639.44 20,878,992.10
Futures tools 3,760,125.00 1,757,120.58
Total 10,931,764.44 22,636,112.68
4. Notes receivable
（1）Categories of notes receivable
Unit: RMB
Items Closing balance Opening balance
Bank acceptance 2,561,934,390.67 2,332,015,457.09
Trade acceptance 5,775,043.04 7,632,781.39
Financial company acceptance 107,616,569.65 137,191,175.41
Total 2,675,326,003.36 2,476,839,413.89
125
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（2）Provision for bad debts
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Book balance Book balance
bad debt bad debt
Categorie Amount Proport Amount Pro
Pro
s Carrying ion visi Carrying
visi on
Amou Propo on amount amount
Amount pro
nt rtion pro port
port ion
ion
Including:
Notes
receivable
with
provision 2,681,2
100.00 5,967,979. 0.22 2,675,326, 2,484,457, 7,618,345. 0.31 2,476,839,41
for bad 93,983. 100.00%
% 64 % 003.36 759.72 83 % 3.89
debt made 00
on a
collective
basis
Including:
Bank 2,561,9
95.55 2,561,934, 2,332,015, 2,332,015,45
acceptanc 34,390. 0.00 93.87%
% 390.67 457.09 7.09
e 67
Financial
company 113,280 5,664,029. 5.00 107,616,56 144,407,79 7,216,620. 5.00 137,191,175.
4.22% 5.81%
acceptanc ,599.64 99 % 9.65 5.90 49 % 41
e
Trade
6,078,9 5.00 5,775,043. 8,034,506. 5.00
acceptanc 0.23% 303,949.65 0.32% 401,725.34 7,632,781.39
92.69 % 04 73 %
e
2,681,2
100.00 5,967,979. 0.22 2,675,326, 2,484,457, 7,618,345. 0.31 2,476,839,41
Total 93,983. 100.00%
% 64 % 003.36 759.72 83 % 3.89
00
Provision for bad debt made on a collective basis:
Unit: RMB
Closing balance
Items
Book balance Provision for bad debt Provision proportion (%)
Bank acceptance
2,561,934,390.67
portfolio
Financial company
113,280,599.64 5,664,029.99 5.00%
acceptance
126
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Trade acceptance
6,078,992.69 303,949.65 5.00%
portfolio
Total 2,681,293,983.00 5,967,979.64
If the provision for bad debt of notes receivable is in accordance with the general expected credit loss model:
√ Applicable □ Not Applicable
Unit: RMB
Phase I Phase II Phase III
Provision for bad Subtotal
debt 12②month expected credit Lifetime expected credit Lifetime expected
losses losses (credit not impaired) credit losses
(credit impaired)
Balance on January
1, 2024 7,618,345.83 7,618,345.83
The balance as of
January 1, 2024 is
in the current
period
Provision for this
period
-1,650,366.19 -1,650,366.19
Balance on June 30,
2024 5,967,979.64 5,967,979.64
（3）Provision for bad debt accrued, recovered or reversed in current period
Provision for bad debt accrued in current period:
Unit: RMB
Changed amount of this period
Opening Closing
Categories Recovered or
balance Accrual Write off Others balance
reversed
Provision for
bad debt made
7,618,345.83 -1,650,366.19 5,967,979.64
on a collective
basis
Total 7,618,345.83 -1,650,366.19 5,967,979.64
Including significant provision for bad debt recovered or reversed amount:
□ Applicable √ Not Applicable
（4）Pledged notes at the balance sheet date
Unit: RMB
Items Closing balance of pledged notes
Bank acceptance 1,793,910,736.57
Financial company acceptance 72,114,823.15
Total 1,866,025,559.72
127
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（5）Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB
Closing balance not yet
Items Closing balance derecognized
derecognized
Bank acceptance 71,858,630.91
Total 71,858,630.91
5. Accounts receivable
（1）Disclosure of accounts receivable by aging
Unit: RMB
AR Aging Closing balance Opening balance
Within 1 year (including one year) 7,475,428,437.53 6,039,601,208.01
1 to 2 years 55,145,447.10 45,652,788.88
2 to 3 years 11,138,289.75 388,260.85
Over 3 years 447,720.11 265,553.29
Total 7,542,159,894.49 6,085,907,811.03
（2）Disclosure of accounts receivable by categories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Book balance Book balance
Catego bad debt bad debt
ries Amount Propo Amoun Accru Carrying Amount Propo Amoun Accru Carrying
rtion t ed amount rtion t ed amount
propo propo
rtion rtion
Receiv
ables
with
provisi
on 8,312,148. 8,312,14 100.00 5,690,817. 5,690,81 100.00
0.11% 0.09%
made 34 8.34 % 36 7.36 %
on an
individ
ual
basis
Includi
ng:
128
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Receiv
ables
with
provisi
on 7,533,847, 99.89 381,004, 7,152,843, 6,080,216, 99.91 306,225, 5,773,991,
5.06% 5.04%
made 746.15 % 143.50 602.65 993.67 % 512.45 481.22
on a
collecti
ve
basis
Includi
ng:
7,542,159, 100.00 389,316, 7,152,843, 6,085,907, 100.00 311,916, 5,773,991,
Total 5.16% 5.13%
894.49 % 291.84 602.65 811.03 % 329.81 481.22
Provision made on an individual basis:
There are no provisions made on an individual basis need to be disclosed in this period.
Unit: RMB
Closing balance
Items
Book balance Provision for bad debt Accrued proportion
Within 1 year 7,472,842,540.14 373,642,127.09 5.00%
1 to 2 years 55,145,447.10 5,514,544.71 10.00%
2 to 3 years 5,412,038.80 1,623,611.64 30.00%
Over 3 years 447,720.11 223,860.06 50.00%
Total 7,533,847,746.15 381,004,143.50
If the provision for bad debt of accounts receivable is in accordance with the general expected credit loss model:
√Applicable □ Not Applicable
Unit: RMB
Provision for bad debt Phase I Phase II Phase III
12②month expected Lifetime expected Lifetime expected Subtotal
credit losses credit losses (credit not credit losses (credit
impaired) impaired)
Balance on January 1, 2024 301,980,060.40 3,996,197.15 5,940,072.26 311,916,329.81
The balance as of January 1,
2024 is in the current period
Provision accrued in the
72,270,331.20 1,518,347.56 4,731,190.87 78,519,869.63
current period
Provision reversed in current
period 608,264.51 511,643.09 1,119,907.60
Balance on June 30, 2024
373,642,127.09 5,514,544.71 10,159,620.04 389,316,291.84
（3）Provision for bad debt accrued, recovered or reversed in current period
Provision for bad debt accrued in current period:
Unit: RMB
129
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Changed amount of the current period
Opening Recovered Closing
Categories
balance Accrued or Write off Others balance
reversed
Receivables with
provision made on 5,690,817.36 3,132,974.07 511,643.09 8,312,148.34
an individual basis
Receivables with
provision made on 306,225,512.45 75,386,895.56 608,264.51 381,004,143.50
a collective basis
Total 311,916,329.81 78,519,869.63 1,119,907.60 389,316,291.84
（4）Details about accounts receivable actually written off in the current period
Unit: RMB
Item Amount
Actually written off amount 1,119,907.60
There were no significant write-offs of accounts receivable during the period
（5）Accounts receivable and contract assets of the top five ending balances
Closing balance of top 5 debtors totaled 3835.4284 million yuan, accounting for 50.85% of the total closing
balance of accounts receivable. The corresponding provision for bad debts of accounts receivable is 191.8120
million yuan.
（6）Other remarks
Some of the company's accounts receivable are collected by digital and electronic debt vouchers. These debt
vouchers have certain credit liquidity and can be used for commercial factoring or transfer payment. As of June
30, 2024, the company had 1905.2108 million yuan of digital and electronic debt vouchers in hand, and 62.4937
million yuan of digital and electronic debt vouchers that had been transferred for payment but not expired.
6. Other receivables
Unit: RMB
Items Closing balance Opening balance
Other receivables 189,681,028.61 227,792,892.12
Total 189,681,028.61 227,792,892.12
（1）Other receivables
1）Other receivables categorized by nature
Unit: RMB
Items Closing balance Opening balance
Tax refund receivable 110,811,217.75 164,712,845.63
Guarantee deposits 27,057,636.23 45,694,632.70
Others 58,138,036.58 25,466,493.81
130
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Total 196,006,890.56 235,873,972.14
2）Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including one year) 185,914,210.46 209,294,612.66
1 to 2 years 4,500,822.46 7,805,876.63
2 to 3 years 2,040,040.72 6,125,806.34
Over 3 years 3,551,816.92 12,647,676.51
Total 196,006,890.56 235,873,972.14
3）Disclosure by categories
√ Applicable □Not Applicable
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Book balance Book balance
Catego bad debt bad debt
ries Amount Propor Amoun Accru Carrying Amount Propor Amoun Accru Carrying
tion t ed amount tion t ed amount
propor propor
tion tion
Provisi
on
made
116,157,0 116,157,0 170,268,2 170,268,2
on an 59.26% 72.19%
30.43 30.43 81.68 81.68
individ
ual
basis
Includi
ng:
131
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Provisi
on
made 79,849,86 6,325,86 73,523,99 65,605,69 8,081,08 57,524,61
40.74% 7.92% 27.81% 12.32%
on a 0.13 1.95 8.18 0.46 0.02 0.44
collect
ive
basis
Includi
ng:
196,006,8 100.00 6,325,86 189,681,0 235,873,9 100.00 8,081,08 227,792,8
Total 3.23% 3.43%
90.56 % 1.95 28.61 72.14 % 0.02 92.12
Provision made on a collective basis:
Unit: RMB
Closing balance
Items
Book balance Provision for bad debt Accrued proportion
Within 1 year 69,757,180.03 3,487,859.03 5.00%
1 to 2 years 4,500,822.46 450,082.24 10.00%
2 to 3 years 2,040,040.72 612,012.22 30.00%
Over 3 years 3,551,816.92 1,775,908.46 50.00%
Total 79,849,860.13 6,325,861.95
Provision for bad debt of other receivables in accordance with the general expected credit loss model:
Unit: RMB
Phase I Phase II Phase III
Provision for bad 12②month Lifetime expected Lifetime expected Subtotal
debt expected credit credit losses (credit credit losses (credit
losses not impaired) impaired)
Balance on January
2,301,288.08 780,587.67 4,999,204.27 8,081,080.02
1, 2024
The balance as of
January 1, 2024 is
in the current
period
Provision for this
1,186,570.95 -330,505.43 -924,586.07 -68,520.55
period
Write off for this
1,686,697.52 1,686,697.52
period
Balance on June 30,
3,487,859.03 450,082.24 2,387,920.68 6,325,861.95
2024
Loss provisions for significant changes in book balances in current period
□ Applicable √ Not Applicable
132
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
4）Provision for bad debt accrued, recovered or reversed in current period
Provision for bad debt accrued in current period:
Unit: RMB
Changed amount of the current period
Opening Closing
Categories Recovered
balance Accrued Write off Others balance
or reversed
Provision for bad debt 8,081,080.02 -68,520.55 1,686,697.52 6,325,861.95
Total 8,081,080.02 -68,520.55 1,686,697.52 6,325,861.95
（5）Details about accounts receivable actually written off in the current period
Unit: RMB
Item Amount
Actually written off amount 1,686,697.52
There were no significant write-offs of accounts receivable during the period.
6）Details of the top 5 debtors with largest balances
Unit: RMB
Proportion to Provision for
Nature of the total balance bad debt at the
Items Closing balance Ages
receivables of other end of the
receivables period
Tax refund
Tax refund 110,811,217.75 Within 1 year 56.53%
receivables
Customs
US Customs 5,345,812.68 Within 1 year 2.73%
deposit
Hailiang
(Anhui) Copper Performance
4,000,000.00 Within 1 year 2.04% 200,000.00
Industry Co., bond
Ltd
Shaoxing
Binhai New
City
Performance
Development 1,311,000.00 Within 1 year 0.67% 65,550.00
bond
and
Construction
Co., Ltd
Hisense
Performance
Refrigerator 800,000.00 0 to 2 years 0.41% 65,000.00
bond
Co., Ltd
Total 122,268,030.43 62.38% 330,550.00
133
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
7. Advances paid
（1）Advances paid by aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 142,420,509.02 94.27% 128,617,877.12 96.13%
1 to 2 years 4,641,165.56 3.07% 2,851,372.48 2.13%
2 to 3 years 3,601,200.00 2.38% 1,053,936.12 0.79%
Over 3 years 407,761.00 0.27% 1,269,437.82 0.95%
Total 151,070,635.58 133,792,623.54
（2）Top 5 debtors with the largest advances paid balances
Closing balance of top 5 debtors totaled 27,328,487.07 yuan, accounting for 18.09% of the total closing
balance.
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
□Yes √ No
（1）Categories of inventories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
decline in decline in
value of value of
inventories inventories
Items or provision Carrying or provision Carrying
Book balance Book balance
for amount for amount
impairment impairment
of contract of contract
performance performance
costs costs
Raw
1,120,760,900.49 67,612,940.35 1,053,147,960.14 932,169,486.90 61,788,757.16 870,380,729.74
materials
Work-in-
706,437,334.08 8,597,976.58 697,839,357.50 596,409,922.79 1,602,512.78 594,807,410.01
progress
Finished
2,798,119,611.53 54,209,754.07 2,743,909,857.46 3,179,557,350.47 50,888,480.61 3,128,668,869.86
goods
Others 14,678,120.63 14,678,120.63 6,872,368.58 6,872,368.58
Total 4,639,995,966.73 130,420,671.00 4,509,575,295.73 4,715,009,128.74 114,279,750.55 4,600,729,378.19
（2）Provision for decline in value of inventories and Provision for impairment of contract performance
costs
Unit: RMB
134
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Decrease in current
Increase in current period
Opening period
Items Closing balance
balance Reversal or
Accrued Others Others
write off
Raw materials 61,788,757.16 16,531,019.49 10,706,836.30 67,612,940.35
Work-in-
1,602,512.78 6,922,057.90 73,405.90 8,597,976.58
progress
Finished goods 50,888,480.61 29,728,741.33 54,502.21 26,461,970.08 54,209,754.07
Total 114,279,750.55 53,181,818.72 127,908.11 37,168,806.38 130,420,671.00
9. Other current assets
Unit: RMB
Items Closing balance Opening balance
Deductible input tax 166,625,073.66 186,254,431.54
Prepaid Enterprise income tax 13,564,061.42 61,993,000.46
Others 10,908,713.19 2,826,152.56
Total 191,097,848.27 251,073,584.56
10. Long-term receivable
（1）Long-term receivable
Unit: RMB
Closing balance Opening balance
Range of
Provision Provision
Items Book Carrying Book Carrying discount
for bad for bad
balance amount balance amount rate
debt debt
Employee
3,805,833.60 3,805,833.60
home loan
Guarantee of 35,133,388.2 35,133,388.2
quality 4 4
Unrecognised - -
financing 35,133,388.2 35,133,388.2
gain 4 4
Total 0.00 0.00 3,805,833.60 3,805,833.60
11. Long-term equity investments
Unit: RMB
Changes in current period
Opening Closing
Investm Cash
balance Adjustm balance
Opening ent dividend Closing
of Investm Investm ent in Provisio of
Investee balance income Changes / Profit balance
provisio ents ents other n for provisio
s (Book recogniz in other declared Others (Book
n for increase decrease compreh impairm n for
value) ed under equity for value)
impairm d d ensive ent impairm
equity distribut
ent income ent
method ion
135
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
1. Associates
2. Joint ventures
Chongqi
ng
-
Tainuo 18,304,17 2,882,088 16,186,26
5,000,000
Machine 6.79 .15 4.94
.00
ry Co.,
Ltd.
Qingdao
Sanhua
Jinlifeng 7,207,202 1,524,268 8,731,471
0.00
Machine .81 .57 .38
ry Co.,
Ltd.
Guochu
ang
Energy
Internet
Innovati 4,941,151 118,788.9 5,059,939
0.00
on .03 5 .98
Center
(Guangd
ong)
Co., Ltd
Ningbo
Jinlifeng -
2,818,824 648,292.4 2,217,116
Machine 1,250,000
.39 0 .79
ry Co., .00
Ltd.
Xinchan
g
zhejiang
energy
1,846,762 1,873,693
sanhua 26,931.08 0.00
.69 .77
compreh
ensive
energy
co. LTD
Zhongsh
an
Xuanyi
2,806,313 219,492.8 3,025,806
Pipe 0.00
.58 6 .44
Manufa
cturing
Co., Ltd
-
37,924,43 5,419,862 37,094,29
Subtotal 6,250,000
1.29 .01 3.30
.00
-
37,924,43 5,419,862 37,094,29
Total 6,250,000
1.29 .01 3.30
.00
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
136
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
□ Applicable √ Not Applicable
12. Investment property
（1）Investment property measured by cost method
√ Applicable □ Not Applicable
Unit: RMB
Land use right and
Items Buildings and structures Total
Overseas land ownership
②. Original Carrying
amount
1.Opening balance 12,988,799.79 3,465,907.20 16,454,706.99
2.Increase in current
450,964.17 -87,097.50 363,866.67
period
（1）Acquisition 316,459.62 316,459.62
（2）Transferred in
from inventory\fixed
assets\ construction in
progress
（3）Increase in
business merger
（4）Converted
difference in Foreign 134,504.55 -87,097.50 47,407.05
Currency Statements
3.Decrease in current
period
（1）Disposal
（2）Other transfer out
4.Closing balance 13,439,763.96 3,378,809.70 16,818,573.66
②. Accumulated
depreciation and
amortization
1.Opening balance 8,288,901.68 8,288,901.68
2. Increase in current
941,240.05 941,240.05
period
（1）Accrual or
1,130,899.10 1,130,899.10
amortization
137
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（2）Converted
difference in Foreign -189,659.05 -189,659.05
Currency Statements
3.Decrease in current
period
（1）Disposal
（2）Other transfer out
4.Closing balance 9,230,141.73 9,230,141.73
②. Provision for
impairment
1.Opening balance
2. Increase in current
period
（1）Accrual
3.Decrease in current
period
（1）Disposal
（2）Other transfer out
4.Closing balance
②. Carrying amount
1.Closing balance 4,209,622.23 3,378,809.70 7,588,431.93
2.Opening balance 4,699,898.11 3,465,907.20 8,165,805.31
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
（2）Investment properties measured using fair value measurement model
□ Applicable √ Not Applicable
13. Fixed assets
Unit: RMB
Items Closing balance Opening balance
Fixed assets 8,018,985,493.67 7,730,363,778.82
Total 8,018,985,493.67 7,730,363,778.82
138
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（1）Fixed assets
Unit: RMB
Machinery and Transportation Office and other
Items Buildings and structures Total
equipment vehicles equipment
②. Original
book
value:
1.Opening
4,047,371,816.59 7,015,745,758.89 48,012,520.72 288,532,729.20 11,399,662,825.40
balance
2. Increase
in current 168,209,500.72 369,757,804.33 2,933,853.21 56,850,274.09 597,751,432.35
period
（1）
6,766,236.50 83,549,914.18 3,046,854.53 41,720,838.45 135,083,843.66
Acquisition
（2）
Transferred in
from 189,294,675.78 291,617,863.12 15,907,577.71 496,820,116.61
construction in
progress
（3）Increase
in business
merger
（4）
Converted
difference in
-27,851,411.56 -5,409,972.97 -113,001.32 -778,142.07 -34,152,527.92
Foreign
Currency
Statements
3. Decrease
in current 13,884,008.95 1,549,497.06 1,139,488.61 16,173,567.09 32,746,561.71
period
（1）
Disposal or 13,884,008.95 1,549,497.06 1,139,488.61 16,173,567.09 32,746,561.71
scrap
4.Closing
4,201,697,308.36 7,383,954,066.16 49,806,885.32 329,209,436.20 11,964,667,696.04
balance
②.
Accumulated
depreciation
1.Opening
757,805,108.30 2,712,789,940.74 29,589,671.69 144,827,742.27 3,645,012,463.00
balance
2. Increase
in current 77,379,049.75 241,976,625.64 2,135,428.43 16,097,827.56 337,588,931.38
period
（1）Accrual 79,877,741.83 246,201,849.56 2,199,871.81 16,394,494.52 344,673,957.72
(2) Converted
difference in
Foreign -2,498,692.08 -4,225,223.92 -64,443.38 -296,666.96 -7,085,026.34
Currency
Statements
3. Decrease
in current 1,872,764.36 51,365,630.81 1,531,410.51 3,079,219.53 57,849,025.21
period
139
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（1）Disposal
1,872,764.36 51,365,630.81 1,531,410.51 3,079,219.53 57,849,025.21
or scrap
4.Closing
833,311,393.69 2,903,400,935.57 30,193,689.61 157,846,350.30 3,924,752,369.17
balance
②. Provision
for
impairment
1.Opening
23,829,156.84 457,426.74 24,286,583.58
balance
2. Increase
in current
period
（1）Accrual
3. Decrease
in current 3,327,909.66 28,840.72 3,356,750.38
period
（1）Disposal
3,327,909.66 28,840.72 3,356,750.38
or scrap
4.Closing
20,501,247.18 428,586.02 20,929,833.20
balance
②. Carrying
amount
1.Closing
3,368,385,914.67 4,460,051,883.41 19,613,195.71 170,934,499.88 8,018,985,493.67
balance
2.Opening
3,289,566,708.29 4,279,126,661.31 18,422,849.03 143,247,560.19 7,730,363,778.82
balance
（2）Temporarily idle fixed assets
Unit: RMB
Original book Accumulated Impairment
Item Net book value Notes
value depreciation provision
Machinery and
39,540,859.16 18,110,601.00 20,897,208.34 533,049.82
equipment
Office equipment
402,344.15 369,309.29 32,624.86 410.00
and others
Subtotal 39,943,203.31 18,479,910.29 20,929,833.20 533,459.82
（3）Fixed assets leased out through operating leases
Unit: RMB
Item Closing balance
Buildings and structures 33,455,808.98
（4）Fixed assets with certificate of titles being unsettled
Unit: RMB
Item Carrying amount Reasons for unsettlement
Sitong new factory1# production 36,197,351.79 New assets, the certificate of title to
140
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
workshop and power workshop be processed uniformly after the
overall completion
Parts, accessories, and Class A New assets, the certificate of title to
warehouse in the new factory of 23,701,068.10 be processed uniformly after the
Sitong overall completion
New assets, the certificate of title to
Pump and auxiliary room in the new
7,325,165.81 be processed uniformly after the
factory of Sitong
overall completion
New assets, the certificate of title to
Dormitory of Sitong 1#&2# 42,178,969.78 be processed uniformly after the
overall completion
New assets, the certificate of title to
Factory 13-15# in Meichu North
159,442,014.54 be processed uniformly after the
District
overall completion
Finished product warehouse and New assets, the certificate of title to
Class A warehouse in Meichu North 38,098,009.54 be processed uniformly after the
District overall completion
Power, tooling, experimental testing, New assets, the certificate of title to
and R&D testing workshop in 1-8 # 425,779,181.41 be processed uniformly after the
of Commercial overall completion
Commercial refrigeration product
New assets, the certificate of title to
warehouse, raw material warehouse,
62,151,537.91 be processed uniformly after the
Class A warehouse, and Class C
overall completion
warehouse
New assets, the certificate of title to
Commercial dormitory 1-4# 148,034,040.06 be processed uniformly after the
overall completion
New assets, the certificate of title to
Commercial canteens, training
38,537,450.24 be processed uniformly after the
buildings, etc
overall completion
New assets, the certificate of title to
Wuhu Sanhua Automatic Control
72,466,558.09 be processed uniformly after the
dormitory
overall completion
New assets, the certificate of title to
1 # Super workshop and power plant 187,076,296.94 be processed uniformly after the
overall completion
New assets, the certificate of title to
Heat exchanger 9 # production
140,866,562.99 be processed uniformly after the
workshop
overall completion
Commercial refrigeration hydrogen
station, 35KV substation, three
New assets, the certificate of title to
waste treatment station, activity
18,473,783.39 be processed uniformly after the
management room, administrative
overall completion
area security guard, logistics area
security guard
14. Construction in progress
Unit: RMB
Items Closing balance Opening balance
Construction in progress 2,746,629,632.47 2,036,326,757.72
Total 2,746,629,632.47 2,036,326,757.72
141
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（1）Details of construction in progress
Unit: RMB
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Annual
production of
12 million sets
of intelligent
thermal
management
159,823,657.32 159,823,657.32 259,331,934.09 259,331,934.09
components of
new energy
vehicles
technical
renovation
project
Annual
production of
12.5 million
sets of
intelligent
thermal 275,215,675.22 275,215,675.22 208,351,289.28 208,351,289.28
management
module for new
energy vehicles
construction
project
Annual
production of 8
million sets of
intelligent
230,046,921.69 230,046,921.69 186,106,762.72 186,106,762.72
thermal
management
component
project
Sanhua Minshi
Automotive
investment 21
million euros to
establish a new 104,761,923.55 104,761,923.55 138,550,445.99 138,550,445.99
automotive
parts
production line
project
Industrial Plant
Engineering in 212,595,522.92 212,595,522.92 128,804,884.71 128,804,884.71
Mexico
The new
energy vehicle
thermal
management 502,038,616.60 502,038,616.60 113,445,275.23 113,445,275.23
parts
production
project in
142
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Guangdong
Sanhua
Annual
production of
1.5 million sets
new energy
61,338,484.34 61,338,484.34 87,649,308.50 87,649,308.50
thermal
management
component
project
Annual output
of 11 million
sets of high
efficiency heat
86,172,352.42 86,172,352.42 87,188,916.55 87,188,916.55
exchange
component for
new energy
vehicles project
Dormitory of
107,369,474.19 107,369,474.19 77,248,786.37 77,248,786.37
Automotive
150-3 # -6 #
Rental
119,634,066.95 119,634,066.95 73,709,950.00 73,709,950.00
dormitory
buildings
Annual output
of 14 million
sets of new
energy cooling
76,422,286.63 76,422,286.63 66,609,673.61 66,609,673.61
component
technology
renovation
project
Annual output
of 11 million
sets of
components 90,954,786.63 90,954,786.63 61,306,246.90 61,306,246.90
technical
renovation
projects
5 million sets
of technical
renovation 23,568,313.34 23,568,313.34 28,032,778.68 28,032,778.68
projects and
equipment
Vietnam
Industrial Plant 66,584,064.04 66,584,064.04 27,351,178.96 27,351,178.96
Engineering
Annual output
of 3 million
sets of thermal
management
components for
27,831,644.68 27,831,644.68 24,537,513.20 24,537,513.20
new energy
vehicles
technical
renovation
project
143
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Annual output
of 4 million
sets of heat
pump
components for
9,255,697.81 9,255,697.81 16,303,564.10 16,303,564.10
new energy
vehicles
technical
renovation
project
Annual output
of 65 million
sets of
intelligent
control
components for 11,685,886.29 11,685,886.29 14,882,282.34 14,882,282.34
commercial
refrigeration
and air
conditioning
project
Sanhua new
energy vehicle
battery water
cooled plate 12,697,090.98 12,697,090.98 13,525,758.03 13,525,758.03
production line
construction
project
Annual output
of 3 million
sets of plate
heat exchange
units and
annual output
of 2 million 49,621,126.68 49,621,126.68 11,493,210.78 11,493,210.78
sets of EXV
electronic
expansion
valve
components
project
Others 519,012,040.19 519,012,040.19 411,896,997.68 411,896,997.68
Total 2,746,629,632.47 2,746,629,632.47 2,036,326,757.72 2,036,326,757.72
（2）Changes of significant construction in progress in current period
Unit: RMB
Transf Accu Includi
Other Accum Capitali
erred mulate ng:
amoun Comple ulated zation
Increas to d capitali
Openin ts tion amount rate for
ed in fixed Closing invest zed Fund
Items Budget g decrea percent of interest
current assets balance ment interest source
balance sed in age capitali in
period in to in
current (%) zed current
the budget current
period interest period
current (%) period
144
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
period
Annual
producti
on of 65
million
sets of
commer
cial
refrigera
tion and
1,780,5
air 14,882,2 40,415,6 43,612, 11,685,88 Raised
50,000. 75.12% 75.12%
conditio 82.34 38.32 034.37 6.29 funds
00
ning
intellige
nt
control
compon
ents
construc
tion
project
Annual
output
of 50.5
million
sets of
high
efficienc
y and
energy
785,570,0 46,423,9 46,423, Raised
saving 31.40% 31.40%
00.00 09.30 909.30 funds
refrigera
tion and
air
conditio
ning
control
compon
ents
project
Annual
producti
on of 1.5
million
sets of
new Self-
650,500,0 87,649,3 5,852,06 32,162, 61,338,4 133.25
energy 99.98% raised
00.00 08.50 5.35 889.51 84.34 %
thermal funds
manage
ment
compon
ents
project
Annual
Self-
output 940,000,0 87,188,9 126,348, 127,365 86,172,3
80.86% 80.86% raised
of 11 00.00 16.55 917.92 ,482.05 52.42
funds
million
145
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
sets of
new
energy
vehicles
high
efficienc
y heat
exchang
er
assembl
y project
Annual
output
of 12.5
million
sets
intellige
nt
thermal Self-
1,372,650 208,351, 66,864,3 275,215,
manage 20.05% 20.05% raised
,000.00 289.28 85.94 675.22
ment funds
module
for new
energy
vehicles
construc
tion
project
The new
energy
vehicle
thermal
manage
ment
Self-
parts 2,050,000 113,445,2 388,605, 11,710. 502,038,
24.49% 24.49% raised
producti ,000.00 75.23 051.99 62 616.60
funds
on
project
in
Guangd
ong
Sanhua
Annual
producti
on of 8
million
sets of
intellige Self-
＄15,000, 107,042, 135,357, 12,353, 230,046,
nt 28.85% 28.85% raised
000.00 879.46 621.95 579.72 921.69
thermal funds
manage
ment
compon
ents
project
618,559, 809,867, 261,929 1,166,49
Total
951.36 590.77 ,605.57 7,936.56
146
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（3）Impairment testing of construction in progress
□ Applicable √ Not Applicable
15. Right of use assets
（1）Details of right of use assets
Unit: RMB
Items Houses and buildings Vehicle Total
②. Original Carrying
amount
1.Opening balance 515,115,808.59 9,520,959.07 524,636,767.66
2.Increased in current
13,964,299.67 -51,329.76 13,912,969.91
period
(1) Rent 16,924,450.63 177,448.34 17,101,898.97
(2) Converted difference in
Foreign Currency -2,960,150.96 -228,778.10 -3,188,929.06
Statements
3.Decreased in current
11,321,136.66 2,187,277.61 13,508,414.27
period
(1) Disposal 11,321,136.66 2,187,277.61 13,508,414.27
4.Closing balance 517,758,971.60 7,282,351.70 525,041,323.30
②. Accumulated
amortization
1.Opening balance 208,527,758.51 2,854,263.62 211,382,022.13
2.Increased in current
47,082,269.03 -38,240.91 47,044,028.12
period
(1) Accrual 47,331,258.02 33,144.32 47,364,402.34
(2) Converted difference
in Foreign Currency -248,988.99 -71,385.23 -320,374.22
Statements
3. Decreased in
6,126,072.92 716,010.54 6,842,083.46
current period
(1) Disposal 6,126,072.92 716,010.54 6,842,083.46
4.Closing balance 249,483,954.62 2,100,012.17 251,583,966.79
②. Provision
for impairment
1.Opening balance
2. Increased in current
period
（1）Accrual
3. Decreased in
current period
（1）Disposal
4.Closing balance
②. Carrying amount
1.Closing balance 268,275,016.98 5,182,339.53 273,457,356.51
2.Opening balance 306,588,050.08 6,666,695.45 313,254,745.53
147
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（2）Impairment testing of right of use assets
□ Applicable √ Not Applicable
16. Intangible Assets
（1）Details of intangible assets
Unit: RMB
Overseas land Application Intellectual
Items Land use right Total
ownership software property
②. Original Carrying
amount
1.Opening balance
831,065,742.54 87,865,763.75 59,242,753.80 52,824,940.36 1,030,999,200.45
2.Increased in
current period
105,661,450.35 82,588,023.92 8,064,368.17 196,313,842.44
（1）
Acquisition 107,940,679.65 88,110,446.31 8,786,657.92 204,837,783.88
（2）Internal
research and
development
（3）Increased
in business merger
（4）Converted
difference in Foreign
Currency Statements
-2,279,229.30 -5,522,422.39 -722,289.75 -8,523,941.44
3.Decreased in
current period
（1）Disposal
148
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
4.Closing balance 936,727,192.89 170,453,787.67 67,307,121.97 52,824,940.36 1,227,313,042.89
②.
Accumulated
amortization
1.Opening balance 120,494,299.61 739,235.92 35,248,356.61 30,651,015.49 187,132,907.63
2.Increased in
9,306,097.54 71,309.23 4,932,552.47 3,090,987.11 17,400,946.35
current period
（1）Accrual 9,680,778.78 66,706.42 5,167,388.11 3,090,987.11 18,005,860.42
（2) Converted
difference in Foreign -374,681.24 4,602.81 -234,835.64 -604,914.07
Currency Statements
3. Decreased in
current period
（1）Disposal
4.Closing balance 129,800,397.15 810,545.15 40,180,909.08 33,742,002.60 204,533,853.98
②. Provision
for impairment
1.Opening balance
2. Increased in
current period
（1）Accrual
149
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（2) Converted
difference in Foreign
Currency Statements
3. Decreased in
current period
（1）Disposal
4.Closing balance
②. Carrying amount
1.Closing balance 806,926,795.74 169,643,242.52 27,126,212.89 19,082,937.76 1,022,779,188.91
2.Opening balance 710,571,442.93 87,126,527.83 23,994,397.19 22,173,924.87 843,866,292.82
At the end of this period, the proportion of intangible assets formed through internal research and development of
the company to the balance of intangible assets is 0.00%.
17. Goodwill
（1）Original Carrying amount of goodwill
Unit: RMB
Investee or Increased in current period Decreased in current period
events Opening Due to Closing
resulting in balance business Disposal balance
goodwill combination
R-Squared
31,959,091.60 31,959,091.60
Puckett Inc.
Goodwill of
Asset Group of
Zhejiang
Sanhua plate 5,839,387.56 5,839,387.56
Exchange
Technology
Co., Ltd
Goodwill of
Non-Asset
1,752,443.05 1,752,443.05
Group of
Zhejiang
150
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Sanhua plate
Exchange
Technology
Co., Ltd
Total 39,550,922.21 39,550,922.21
（2）Provision for goodwill impairment
Unit: RMB
Investee or Increased in current period Decreased in current period
events Opening Closing
Provision Disposal
resulting in balance balance
made
goodwill
R-Squared
31,959,091.60 31,959,091.60
Puckett Inc.
Goodwill of
Non-Asset
Group of
Zhejiang
806,602.57 201,650.64 1,008,253.21
Sanhua plate
Exchange
Technology
Co., Ltd
Total 32,765,694.17 201,650.64 32,967,344.81
（3）Other remarks
Goodwill of Non-Asset Group of Zhejiang Sanhua plate Exchange Technology Co., Ltd. refers to the
goodwill formed by recognizing deferred income tax liabilities for asset valuation appreciation, the goodwill
generated when Zhejiang Sanhua Commercial Co., Ltd. acquired and merged Zhejiang Sanhua plate Exchange
Technology Co., Ltd. under non-common control, the goodwill impairment loss is provisioned synchronously
with the reversal of deferred tax liabilities.
18. Long-term prepayments
Unit: RMB
Opening Increased in
Items Amortization Other decreases Closing balance
balance current period
Rental housing
construction
and 91,089,761.84 31,555,734.67 11,365,116.11 111,280,380.40
transformation
expenditure
Expenditures on
tooling and 27,006,674.25 7,936,545.53 6,317,963.99 28,625,255.79
molds
Total 118,096,436.09 39,492,280.20 17,683,080.10 139,905,636.19
151
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
19. Deferred tax assets / deferred tax liabilities
（1）Deferred tax assets before offset
Unit: RMB
Closing balance Opening balance
Items Deductible temporary Deferred tax Deductible temporary Deferred tax
difference assets difference assets
Provision for bad
339,588,141.88 73,560,923.63 261,315,206.58 54,641,190.49
debt
Provision for
25,678,481.74 5,596,181.53 42,325,391.26 8,139,006.84
inventory write-down
Unrealized profit
from internal 369,869,111.14 24,940,973.45 433,833,345.36 34,546,191.69
transactions
Deductible losses 92,293,578.38 23,073,394.61 76,215,945.95 18,485,636.55
Deferred income-
410,380,362.68 72,697,603.83 378,102,855.53 68,133,180.61
government grants
Provision for fixed
20,929,833.20 3,149,723.22 20,614,046.13 3,102,355.15
assets impairments
Lease liabilities 68,592,824.33 13,108,534.26 85,136,567.36 16,775,016.78
Share-based payment
149,253,576.02 22,853,190.06 115,180,902.79 17,742,289.08
expenses
Floating loss of
derivative 263,750.00 39,562.50 1,228,538.00 184,280.70
instruments
Total 1,476,849,659.37 239,020,087.09 1,413,952,798.96 221,749,147.89
（2）Deferred tax liabilities before offset
Unit: RMB
Closing balance Opening balance
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Appreciation of
assets appraisal of the
business
7,087,522.28 1,063,128.34 9,008,004.60 1,351,200.69
combinations not
under common
control
Accelerated
depreciation of 2,160,986,121.81 340,381,985.50 2,047,041,074.93 324,214,511.19
equipment
Floating gain on
3,901,784.20 585,267.63 1,463,100.00 219,465.00
derivatives
Accrued interest of
181,261,422.78 29,226,390.92 191,331,258.62 30,267,866.29
certificate of deposit
Right-of-use assets 68,592,824.33 13,108,534.28 85,136,567.36 16,775,016.78
Total 2,421,829,675.40 384,365,306.67 2,333,980,005.51 372,828,059.95
152
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
（3）Deferred tax assets or liabilities after offset shown on a net offsetting basis
Unit: RMB
Deferred tax assets Deferred tax assets
Closing balance of Opening balance of
and liabilities offset and liabilities offset
deferred tax assets deferred tax assets
Items amount at the end amount at the
or liabilities after or liabilities after
of the balance beginning of the
offset offset
amount balance amount
Deferred tax assets 136,496,569.94 102,523,517.15 65,316,990.66 156,432,157.23
Deferred tax
136,496,569.94 247,868,736.73 65,316,990.66 307,511,069.30
liabilities
（4）Details of unrecognized deferred tax assets
Unit: RMB
Items Closing balance Opening balance
Provision for bad debt 62,021,991.55 66,300,549.08
Provision for inventory write-down 104,742,189.26 71,954,359.29
Deductible losses of subsidiaries 307,426,461.72 280,085,140.01
Deferred income-government grants 704,347.35 1,037,186.95
Floating loss on derivatives 36,639,620.31 9,490,572.02
Investment losses recognized by the equity
19,494,293.30 20,324,431.29
method
Total 531,028,903.49 449,192,238.64
（5）Deductible losses of unrecognized deferred tax assets will expire in the following years
Unit: RMB
Maturity years Closing balance Opening balance Remarks
Year 2025 1,160,674.55
Year 2026 521,923.98
Year 2027 18,085,193.22 23,055,008.78
Year 2028 69,411,053.56 74,714,376.64
Year 2029 79,612,442.10 16,716,170.44
Year 2030 6,447,140.25 12,549,643.88
Year 2031 69,321,405.03 69,321,405.03
Year 2032 3,108,373.33 6,336,459.07
Year 2033 61,440,854.23 75,709,477.64
Total 307,426,461.72 280,085,140.01
20. Other non-current assets
Unit: RMB
Items Closing balance Opening balance
153
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Provision Provision
Book Carrying Carrying
for Book balance for
balance amount amount
impairment impairment
Advanced
payment for
non-current 537,847,282.09 537,847,282.09 564,023,136.83 564,023,136.83
assets
purchasing
Employee
3,986,468.00 3,986,468.00
housing loan
Total 541,833,750.09 541,833,750.09 564,023,136.83 564,023,136.83
21. Assets with title or use right restrictions
Unit: RMB
Closing Opening
Reasons Reasons
Type of Type of
Items Book Carrying for Book Carrying for
restriction restriction
balance amount restriction balance amount restriction
s s
s s
Cash and
50,256,461. 50,256,461. Guarante 76,476,700. 76,476,700. Guarante
bank Pledge Pledge
32 32 e deposit 95 95 e deposit
balances
Cash and
281,570,37 281,570,37 Pledge
bank Pledge
9.73 9.73 financing
balances
Notes
1,866,025,5 1,862,419,8 Pledge 2,214,363,8 2,208,446,8 Pledge
receivabl Pledge Pledge
59.72 18.56 financing 80.38 69.75 financing
e
Digital Digital
and and
electronic electronic
debt debt
vouchers vouchers
Accounts
62,493,748. 59,369,060. that have 66,621,446. 63,290,374. that have
receivabl Pledge Pledge
40 98 been 85 51 been
e
endorsed endorsed
or or
discounte discounte
d but are d but are
not due not due
1,978,775,7 1,972,045,3 2,639,032,4 2,629,784,3
Total
69.44 40.86 07.91 24.94
22. Short-term borrowings
（1）Categories of short-term borrowings
Unit: RMB
Items Closing balance Opening balance
Credit borrowings 400,000,000.00 200,000,000.00
154
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Overseas loan under domestic
987,273,900.00 1,002,451,361.04
guarantee
Financial asset discount financing 9,700,000.00 5,748,871.44
Accrued interest 1,226,302.82 3,950,146.37
Total 1,398,200,202.82 1,212,150,378.85
23. Trading financial liabilities
Unit: RMB
Items Closing balance Opening balance
Trading financial liabilities 3,500,000.00
Including:
Contingent consideration for
3,500,000.00
business merge
Including:
Total 3,500,000.00
24. Derivative financial liabilities
Unit: RMB
Items Closing balance Opening balance
Exchange rate derivative 36,636,918.40 10,719,110.02
Futures derivative 266,451.91
Total 36,903,370.31 10,719,110.02
25. Notes payable
Unit: RMB
Categories Closing balance Opening balance
Bank acceptance 3,520,145,951.34 3,416,711,594.64
Total 3,520,145,951.34 3,416,711,594.64
26. Accounts payable
（1）Details of accounts payable
Unit: RMB
Items Closing balance Opening balance
Within 1 year 4,882,360,110.46 4,405,227,329.99
1 to 2 years 114,033,135.57 27,522,682.35
2 to 3 years 27,678,372.62 10,155,105.49
Over 3 years 9,794,937.33 7,035,241.98
Total 5,033,866,555.98 4,449,940,359.81
27. Other payables
Unit: RMB
Item Closing balance Opening balance
Other payables 578,350,601.82 250,642,662.86
155
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Total 578,350,601.82 250,642,662.86
（1）Other payables
1）Other payables listed by nature
Unit: RMB
Items Closing balance Opening balance
Restricted shares repo obligations 410,702,774.29 118,010,274.29
Demolition of loans 33,604,994.80
Compensation for product quality
7,138,336.72 19,370,760.58
loss
Guarantee deposit 52,167,839.25 41,716,593.20
Rent and property fee 7,962,781.21 2,401,192.28
Collection of talent awards 2,529,968.59 4,114,516.00
Others 64,243,906.96 65,029,326.51
Total 578,350,601.82 250,642,662.86
28. Contract liabilities
Unit: RMB
Items Closing balance Opening balance
Customer contract advance
62,714,790.24 51,788,802.03
payment
Total 62,714,790.24 51,788,802.03
29. Employee benefits payable
（1）Details of employee benefits payable
Unit: RMB
Opening Increased in Decreased in Closing
Items
balance current period current period balance
②. Short-term employee benefits 581,554,274.99 1,875,917,342.94 1,974,595,148.52 482,876,469.41
②. Post-employment benefits -
12,017,618.66 66,644,195.72 71,378,470.28 7,283,344.10
defined contribution plan
②. Termination benefits 5,229,352.69 1,304,946.95 3,924,405.74
Total 598,801,246.34 1,942,561,538.66 2,047,278,565.75 494,084,219.25
（2）Details of Short-term employee benefits
Unit: RMB
Increased in current Decreased in current
Items Opening balance Closing balance
period period
1. Wage, bonus,
allowances and 528,759,992.88 1,416,192,432.70 1,538,847,892.16 406,104,533.42
subsidy
2. Employee welfare
805,549.18 68,972,957.07 69,197,652.44 580,853.81
fund
3. Social insurance 18,721,770.38 60,674,873.01 56,385,318.42 23,011,324.97
156
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
premium
Including:
5,616,918.92 35,782,799.71 36,612,331.42 4,787,387.21
Medicare premium
Occupational injuries 747,127.97 2,461,898.71 2,911,553.77 297,472.91
premium
121,875.86 112,835.63 80,881.69 153,829.80
Maternity premium
Overseas social
12,235,847.63 22,317,338.96 16,780,551.54 17,772,635.05
security contributions
4. Housing provident
19,286.00 37,579,813.27 37,569,495.27 29,604.00
fund
5.Dispatching
23,811,068.55 281,568,793.93 263,383,478.90 41,996,383.58
remuneration
6. Stock appreciation
7,879,890.00 760,620.00 8,640,510.00
option
7.Others 1,556,718.00 10,167,852.96 9,211,311.33 2,513,259.63
Total 581,554,274.99 1,875,917,342.94 1,974,595,148.52 482,876,469.41
（3）Details of defined contribution plan
Unit: RMB
Opening Increased in current Decreased in current Closing
Items
balance period period balance
1. Basic endowment insurance
11,603,727.01 64,425,459.91 68,994,165.93 7,035,020.99
premium
2. Unemployment insurance
413,891.65 2,218,735.81 2,384,304.35 248,323.11
premium
Total 12,017,618.66 66,644,195.72 71,378,470.28 7,283,344.10
30. Taxes and rates payable
Unit: RMB
Items Closing balance Opening balance
Enterprise income tax 163,522,335.15 186,575,216.87
VAT 53,318,488.42 30,168,036.77
Housing property tax 14,269,671.01 23,482,515.63
Land use tax 7,466,399.06 12,974,469.60
Urban maintenance and
4,868,921.43 5,330,039.26
construction tax
Education surcharge 2,463,553.88 2,459,912.39
Local education surcharge 1,643,109.17 1,639,941.61
Overseas tax 8,544,900.23 99,516,370.91
Individual income tax 9,625,590.52 12,843,108.53
Others 6,550,789.65 7,407,179.62
Total 272,273,758.52 382,396,791.19
31. Non-current liabilities due within one year
Unit: RMB
Items Closing balance Opening balance
157
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Guaranteed borrowings 230,000,000.00 1,370,000,000.00
Accrued interest 1,904,138.91 1,195,277.78
Lease liabilities 60,665,100.54 68,897,976.15
Total 292,569,239.45 1,440,093,253.93
32. Other current liabilities
Unit: RMB
Items Closing balance Opening balance
Output tax to be written off 2,837,216.89 2,099,986.27
Total 2,837,216.89 2,099,986.27
33. Long-term borrowings
（1）Categories of long-term borrowings
Unit: RMB
Items Closing balance Opening balance
Guaranteed borrowings 2,220,000,000.00 1,030,000,000.00
Accrued interest 801,111.13
Total 2,220,000,000.00 1,030,801,111.13
34. Leased liabilities
Unit: RMB
Items Closing balance Opening balance
Lease payables 259,007,745.00 290,193,458.01
Less：Leased liabilities due within 1
-60,665,100.54 -68,897,976.15
year
Total 198,342,644.46 221,295,481.86
35. Long-term payables
Unit: RMB
Items Closing balance Opening balance
Long-term payables 17,497,031.70 11,290,788.32
Total 17,497,031.70 11,290,788.32
（1）Long-term payables listed by nature
Unit: RMB
Items Closing balance Opening balance
Stock appreciation rights deposit 9,657,551.70 3,499,818.32
Retention money 7,839,480.00 7,790,970.00
Total 17,497,031.70 11,290,788.32
158
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
36. Long-term employee benefits payable
（1）Table of long-term employee benefits payable
Unit: RMB
Items Closing balance Opening balance
Long-term employee rights protection funds 37,014,460.55 39,840,362.77
Total 37,014,460.55 39,840,362.77
37. Deferred income
Unit: RMB
Opening Increased in current Decreased in Closing Reasons for
Items
balance period current period balance balance
Government Related to
379,140,042.48 66,427,000.00 34,482,332.45 411,084,710.03
grants assets
Total 379,140,042.48 66,427,000.00 34,482,332.45 411,084,710.03 --
38. Other non-current liabilities
Unit: RMB
Items Closing balance Opening balance
Engineering agent construction
18,154,107.25 18,154,107.25
fund
Total 18,154,107.25 18,154,107.25
39. Share capital
Unit: RMB
Changed amount of current period（+/-）
Issue
Opening balance Reserve Closing balance
of Bonus
transferred Others Subtotal
new shares
to shares
shares
Total
3,732,615,535.00 3,732,615,535.00
shares
40. Capital reserve
Unit: RMB
Increased in current Decreased in
Items Opening balance Closing balance
period current period
Capital premium
（Share 3,296,004,248.86 291,333,303.19 3,004,670,945.67
premium）
Other capital
159,639,317.12 34,072,715.35 193,712,032.47
reserve
Total 3,455,643,565.98 34,072,715.35 291,333,303.19 3,198,382,978.14
159
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
41. Treasury shares
Unit: RMB
Increased in current Decreased in
Items Opening balance Closing balance
period current period
Restricted shares 118,009,850.00 292,692,500.00 3,057,250.00 407,645,100.00
Repo shares 305,458,741.57 299,977,735.21 577,662,900.00 27,773,576.78
Total 423,468,591.57 592,670,235.21 580,720,150.00 435,418,676.78
42. Other comprehensive income (OCI)
Unit: RMB
Changed amount of the current period
Less:
Less: OCI Attributa
Current OCI Attributab
carried Less: ble to
period carried le to
Opening forward incom Non- Closing
Items cumulativ forward the parent
balance transferre e tax controllin balance
e before transferr Company
d to expen g
income ed to after
undistribu se interest
tax profit or tax
ted profit after tax
loss
Items to be
reclassified - - -
114,757,064
subsequentl 170,919,517 170,919,517 56,162,453
.28
y to profit .87 .87 .59
or loss
- - -
Converted 114,757,064
170,919,517 170,919,517 56,162,453
difference .28
.87 .87 .59
in Foreign
Other
- - -
comprehens 114,757,064
170,919,517 170,919,517 56,162,453
ive income .28
.87 .87 .59
in total
43. Surplus reserve
Unit: RMB
Opening Increased in current Decreased in current Closing
Items
balance period period balance
Statutory surplus
985,419,187.09 985,419,187.09
reserve
Discretionary surplus
8,681,137.20 8,681,137.20
reserve
Reserve fund 17,813,919.38 17,813,919.38
Total 1,011,914,243.67 1,011,914,243.67
44. Undistributed profit
Unit: RMB
Items Current period Previous period
Balance before adjustment at the end of the 10,002,942,167.43 8,133,336,242.88
160
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
previous period
Balance after adjustment at the end of the
10,002,942,167.43 8,133,336,242.88
previous period
Add: Net profit attributable to shareholders
1,514,515,444.75 1,394,760,848.85
of the parent Company for current year
Payable dividends on ordinary shares 926,626,153.50 716,972,510.40
Closing balance 10,590,831,458.68 8,811,124,581.33
45. Operating revenue and Operating cost
Unit: RMB
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 13,339,516,056.72 9,600,581,039.21 12,098,477,558.91 8,896,073,559.94
Other operations 336,556,104.36 319,809,279.72 430,443,066.68 412,587,356.33
Total 13,676,072,161.08 9,920,390,318.93 12,528,920,625.59 9,308,660,916.27
46. Taxes and surcharges
Unit: RMB
Items Current period cumulative Preceding period comparative
Urban maintenance and construction tax 23,537,077.44 19,076,010.08
Education surcharge 11,398,760.51 9,549,962.48
Housing property tax 16,482,455.15 13,259,614.90
Land use tax 7,044,828.51 -2,555,201.21
Stamp duty 12,321,752.89 9,273,589.74
Local education surcharge 7,620,732.33 6,366,641.58
Local foundation for water works 705,258.48 615,607.60
Others 5,122,564.97 3,791,190.15
Total 84,233,430.28 59,377,415.32
47. Administrative expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Labor cost 563,739,428.50 375,657,341.88
Share-based payment remuneration 28,245,298.77 33,770,669.95
Depreciation and amortization expense 84,573,992.63 69,142,975.31
Office expense 113,589,529.35 76,921,701.21
Intermediary organ expense 41,778,051.43 28,816,004.69
Entertainment expense 12,456,327.05 10,229,586.21
Vehicle expense 12,573,736.97 6,229,475.81
Sporadic renovation expense in the park 9,329,354.50 4,904,430.90
Others 21,713,584.30 14,184,388.69
Total 887,999,303.50 619,856,574.65
48. Selling expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Labor cost 174,823,710.59 144,826,488.29
161
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Entertainment expense 26,263,620.05 23,340,048.05
Warehousing, freight and miscellaneous
53,153,942.63 45,966,149.44
charges
Travel expense 19,582,339.16 15,714,428.65
Advertising expense 7,867,850.80 8,873,624.72
Others 15,311,002.51 25,410,991.12
Total 297,002,465.74 264,131,730.27
49. R&D expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Labor cost 387,224,362.76 336,153,051.01
Direct input expense 181,888,526.25 176,171,267.76
Depreciation and amortization expense 25,381,756.53 20,543,216.56
Mold manufacturing expense 12,203,836.61 29,986,237.50
Royalties 6,041,782.02 4,486,936.80
Outsourcing R&D expense 1,130,148.71 784,296.40
Others 18,741,495.08 12,144,626.01
Total 632,611,907.96 580,269,632.04
50. Financial expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Interest expense 71,736,060.65 126,688,323.68
Including: Interest on bond payable 67,598,047.15
Interest on lease liabilities 3,186,027.96 795,945.00
Interest income -84,853,231.77 -87,661,462.57
Exchange gains or losses -42,024,236.94 -194,192,937.27
Others 3,359,698.51 3,505,706.15
Total -51,781,709.55 -151,660,370.01
51. Other income
Unit: RMB
Source of the other income Current period cumulative Preceding period comparative
Government subsidies related to
34,482,332.45 15,329,655.57
assets
Government subsidies related to
63,514,083.32 45,391,151.86
revenue
VAT extra deductions 28,494,105.96
Handling fees for withholding
2,061,490.41 2,096,068.10
individual income tax
Total 128,552,012.14 62,816,875.53
52. Gains or losses on changes in fair value
Unit: RMB
162
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Items Current period cumulative Preceding period comparative
Floating income of bank financing
388,505.61
products
Floating income of futures
1,735,630.85 -4,993,318.34
contracts
Floating income of foreign
-44,954,858.33 -83,834,712.30
exchange contract
Floating income on option
141,659.20 -375,000.00
contracts
Total -43,077,568.28 -88,814,525.03
53. Investment income
Unit: RMB
Items Current period cumulative Preceding period comparative
Investment income from long-term
5,419,862.01 5,296,750.30
equity investments under equity method
Gains and losses on bank financial
1,168,153.45 86,531.50
products
Gains and losses on exchange rate
-31,194,534.61 -53,498,269.42
derivatives
Gains and losses on futures derivatives 11,406,235.86 9,338,561.14
Income from derecognition of financial
-8,174,613.92
assets
Others 1,520,214.66 808,967.09
Total -11,680,068.63 -46,142,073.31
54. Credit impairment loss
Unit: RMB
Items Current period cumulative Preceding period comparative
Provision for bad debt -76,800,982.89 -72,153,972.68
Total -76,800,982.89 -72,153,972.68
55. Assets impairment loss
Unit: RMB
Items Current period cumulative Preceding period comparative
I. Inventory write-down loss and contract
-44,232,452.69 -24,318,451.98
performance cost impairment loss
II. Goodwill impairment loss -201,650.64 -604,951.92
Total -44,434,103.33 -24,923,403.90
56. Gains on asset disposal
Unit: RMB
Items Current period cumulative Preceding period comparative
163
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Gains on disposal of assets -245,261.28 -406,527.50
57. Non-operating revenue
Unit: RMB
Amount recorded into the
Current period Preceding period
Items current non-recurring profit
cumulative comparative
and loss
Exempted payment 996,334.93 2,349,197.54 996,334.93
Compensation and penalty income 721,658.19 1,610,099.34 721,658.19
Gains from retirement of fixed
894,349.32 152,173.06 894,349.32
assets
Others 1,946,688.19 452,881.99 1,946,688.19
Total 4,559,030.63 4,564,351.93 4,559,030.63
58. Non-operating expenditures
Unit: RMB
Current period Preceding period Amount included in non-
Items
cumulative comparative recurring profit or loss
Losses on retirement of
6,795,429.61 2,809,729.96 6,795,429.61
fixed assets
Litigation for damages 1,173,340.79 1,767,511.58 1,173,340.79
Donation expenditure 103,060.00 106,988.95 103,060.00
Others 455,874.02 576,508.42 455,874.02
Total 8,527,704.42 5,260,738.91 8,527,704.42
59. Income tax expenses
（1）Income tax expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Current period income tax
334,407,725.47 231,976,676.94
expenses
Deferred income tax expenses -2,111,579.48 31,493,520.51
Total 332,296,145.99 263,470,197.45
（2）Reconciliation of accounting profit to income tax expenses
Unit: RMB
Items Current period cumulative
Income before tax 1,853,961,798.16
Income tax expense calculated at the applicable tax rate 347,144,631.93
Adjustment of preliminary income tax expense
21,374,962.41
settlement and payment
Plus deduction of R&D expenses -72,486,768.71
Others 36,263,320.36
Income tax expenses 332,296,145.99
164
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
60. Other comprehensive income
Please refer to the notes of balance sheet items and other comprehensive income for details.
61. Notes to items of the consolidated cash flow statement
（1）Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Government grants 86,791,211.40 41,527,261.26
Interest income 102,038,912.05 54,965,021.52
Rental income 5,453,306.75 5,521,293.13
Guarantee deposit 19,792,809.15 7,811,313.61
Net change of restricted funds 19,574,857.22
Others 4,520,771.35 5,270,609.75
Total 238,171,867.92 115,095,499.27
Other cash payments related to operating activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Guarantee deposit 10,451,246.05 15,255,451.57
Net change of restricted funds 2,046,000.00
Period expense payments 476,515,154.85 368,383,438.30
Total 486,966,400.90 385,684,889.87
（2）Cash related to investment activities
Other cash receipts related to investing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Redemption of certificates of deposit
569,000,000.00 440,000,000.00
and financial products
Net change of restricted funds 19,157,342.43 14,311,380.20
Income from futures contract
10,804,591.38
derivatives settlement
Income from national debt reverse
496,290.86
repurchase
Total 599,458,224.67 454,311,380.20
Important cash received related to investment activities
Unit: RMB
165
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Items Current period cumulative Preceding period comparative
Compensation for land collection
546,216,590.00
and storage
Total 546,216,590.00
Other cash payments related to investing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Subscription of certificates of
300,000,000.00 20,000,000.00
deposit
Net change of restricted funds 5,512,961.02 1,700,028.28
Loss on exchange rate derivatives
30,592,890.13 53,498,269.42
instrument settlement
Payment of subsidiaries'
performance commitments to 3,500,000.00
minority shareholders
Purchase of financial products 100,000,000.00
Total 439,605,851.15 75,198,297.70
（3）Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Net change of restricted funds 13,000,000.00 27,789,205.90
Loans from other banks 11,837,146.85
Accounts receivable factoring 16,918,063.05
Total 29,918,063.05 39,626,352.75
Other cash payments related to financing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Repo shares expenses（including
299,977,735.21
restricted stock)
Rental expenses 51,687,909.71 45,508,985.35
Net change of restricted funds 7,000,000.00 22,989,492.00
Interest of loans from other banks 3,898,060.02
Total 362,563,704.94 68,498,477.35
Changes in liabilities related to financing activities
√ Applicable □ Not Applicable
166
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Unit: RMB
Increase Decrease
Opening Closing
Items Changes in Changes in Changes in Changes in
balance balance
cash non-cash cash non-cash
Short-term 1,212,150,378. 1,398,200,202.
200,000,000.00 13,747,755.93 202,420.10
borrowings 85 82
Long-term
borrowings
(including
2,401,996,388. 1,140,000,000. 1,140,000,000. 2,451,904,138.
long-term 49,907,750.00
91 00 00 91
borrowings
due within
one year)
Lease
liabilities
(lease
290,193,458.01 20,673,084.36 51,687,909.71 170,887.66 259,007,745.00
liabilities due
within one
year)
Dividends
926,626,153.00 926,626,153.00
payable
3,904,340,225. 1,340,000,000. 2,132,061,818. 4,109,112,086.
Total 997,206,987.36 373,307.76
77 00 64 73
62. Supplement information to the cash flow statement
（1）Supplement information to the cash flow statement
Unit: RMB
Supplement information Current period cumulative Preceding period comparative
1. Reconciliation of net profit to
-- --
cash flow from operating activities:
Net profit 1,521,665,652.17 1,414,494,515.73
Add: Provision for assets
121,235,086.22 97,077,376.58
impairment loss
Depreciation of fixed assets,
oil and gas assets, productive 345,804,856.82 312,096,036.62
biological assets
Amortization of right-of-use
47,364,402.34 45,452,675.72
assets
Amortization of intangible
18,005,860.42 11,005,377.33
assets
Amortization of Long-term
17,683,080.10 11,273,974.46
prepayments
Loss on disposal of
fixed assets, intangible assets and 245,261.28 406,527.50
other long-term assets (Less: gains)
Loss on retirement of
5,901,080.29 2,657,556.90
fixed assets (Less: gains)
Losses on changes in fair
43,077,568.28 88,814,525.03
value (Less: gains)
167
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Financial expenses (Less:
-10,579,748.21 94,787,827.63
gains)
Investment losses (Less: gains) 13,200,283.29 38,728,801.02
Decrease of deferred tax
53,908,640.08 144,696,035.59
assets (Less: increase)
Increase of deferred tax
-59,642,332.57 -114,420,506.63
liabilities (Less: decrease)
Decrease of inventories (Less:
46,793,721.65 305,426,294.80
increase)
Decrease of operating
-1,646,868,032.49 -1,460,686,740.42
receivables (Less: increase)
Increase of operating
609,592,921.15 672,088,278.73
payables (Less: decrease)
Others 34,241,575.35 54,775,037.02
Net cash flows from operating
1,161,629,876.17 1,718,673,593.61
activities
2. Significant investing and
financing activities not related to
cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within
one year
Fixed assets leased in under
finance leases
3. Net changes in cash and cash
equivalents:
Cash at the end of the period 2,575,560,166.98 2,050,600,180.32
Less: Cash at the beginning of
3,624,955,498.84 2,050,328,601.77
the period
Add: Cash equivalents at the
end of the period
Less: Cash equivalents at the
beginning of the period
Net increase of cash and cash
-1,049,395,331.86 271,578.55
equivalents
（2）Composition of cash and cash equivalents
Unit: RMB
Items Closing balance Opening balance
I.Cash 2,575,560,166.98 3,624,955,498.84
Including: Cash on hand 611,537.90 291,216.13
Cash in bank that can be
2,574,871,533.06 3,624,655,126.84
readily drawn on demand
Other monetary funds that can
77,096.02 9,155.87
be readily for payment
III. Cash and cash equivalents at end
2,575,560,166.98 3,624,955,498.84
of year
168
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
63. Assets with restricted ownership or usage
Unit: RMB
Items Book Balance Carrying amount Reasons for restriction
Cash and bank balances 50,256,461.32 50,256,461.32 Margin Deposit
Notes receivable 1,866,025,559.72 1,862,419,818.56 Pledge financing
Electronic debt
instruments that have
been transferred for
Accounts receivable 62,493,748.40 59,369,060.98
payment or factored for
financing but not yet
matured
Total 1,978,775,769.44 1,972,045,340.86
64. Monetary items in foreign currencies
（1）Monetary items in foreign currencies
Unit: RMB
Closing balance in foreign Exchange rate RMB equivalent
Items
currencies
Cash and Bank Balances
Including: USD 153,701,911.69 7.1268 1,095,402,784.21
EUR 17,117,419.72 7.6617 131,148,534.65
Other currencies 159,052,672.82
Subtotal 1,385,603,991.68
Accounts receivable
Including: USD 302,133,839.07 7.1268 2,153,247,444.28
EUR 62,781,538.94 7.6617 481,013,316.87
Other currencies 139,979,881.67
Subtotal 2,774,240,642.82
Other receivables
Including: USD 536,034.19 7.1268 3,820,208.47
EUR 190,570.11 7.6617 1,460,091.03
Other currencies 20,848,051.54
Subtotal 26,128,351.04
Short-term borrowings
Including: USD 45,000,000.00 7.1268 320,706,000.00
EUR 87,000,000.00 7.6617 666,567,900.00
Subtotal 987,273,900.00
Derivative financial
liabilities
Including: USD 4,605,710.49 7.1268 32,823,977.52
Accounts payable
Including: USD 35,988,707.73 7.1268 256,484,322.25
EUR 2,240,643.81 7.6617 17,167,140.70
Other currencies 172,265,323.10
Subtotal 445,916,786.05
Other payables
Including: USD 6,036,575.43 7.1268 43,021,465.77
EUR 833,491.45 7.6617 6,385,961.44
169
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Other currencies 117,334,302.61
Subtotal 166,741,729.82
Non-current liabilities due
within one year
Including: USD 1,462,860.25 7.1268 10,425,512.43
EUR 1,293,471.37 7.6617 9,910,189.60
Other currencies 6,256,029.94
Subtotal 26,591,731.97
Long-term payables
Including: USD 1,884,809.65 7.1268 13,432,661.41
EUR 473,611.75 7.6617 3,628,671.14
Other currencies 459,582.03
Subtotal 17,520,914.58
Lease liabilities
Including: USD 5,334,628.91 7.1268 38,018,833.32
EUR 7,526,042.93 7.6617 57,662,283.12
Other currencies 19,025,911.58
Subtotal 114,707,028.02
（2）Notes on overseas operating entities, including for the significant overseas operating entities, its main
operating locations, reporting currency and the basis for selection should be disclosed, and the reason for
changes in reporting currency should also be disclosed.
√ Applicable □ Not Applicable
The Company has several overseas subsidiaries, locate in the United States, Europe, Japan, Poland, Mexico,
Vietnam and other countries, where US dollars, Euro, Japanese yen, Polish zloty, Mexican pesos Vietnamese
dong , etc. are used as the standard reporting currency.
65. Government grants
（1）Government grants increased in the current period
Unit: RMB
Items Amount
Government grants related to assets 66,427,000.00
Including: Included into deferred income 66,427,000.00
Government grants related to income 63,514,083.32
Including: Included into other income 63,514,083.32
Total 129,941,083.32
（2）Liabilities related to government grants
Unit:RMB
Items Opening balance Increase Carryover Closing balance Remarks
170
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Deferred Related to
379,140,042.48 66,427,000.00 34,482,332.45 411,084,710.03
income assets
Total 379,140,042.48 66,427,000.00 34,482,332.45 411,084,710.03
（3）Government grants included into profit or loss
Unit: RMB
Items Current period cumulative Preceding period comparative
Other income 97,996,415.77 60,720,807.43
Total 97,996,415.77 60,720,807.43
Ⅷ. Interest in other entities
1. Composition of enterprise group
（1）The company includes subsidiaries such as Zhejiang Sanhua Automotive Parts Co., Ltd. in the scope
of consolidated financial statements.
（2）Basic information of important subsidiaries
Main Holding proportion
operating
Subsidy Registered Business Acquisition
place and
name capital nature Direct Indirect method
place of
registration
Zhejiang Business
Sanhua combination
Automotive
Automotive 216,000 Zhejiang 100.00% under
components
Components common
Co., Ltd. control
Sanhua
Business
(hangzhou)
combination
Micro Refrigeration
36,000 Zhejiang 100.00% under
Channel Heat components
common
Exchanger
control
Co., Ltd
Zhejiang Investment
Sanhua Refrigeration and
5,000 Zhejiang 100.00%
Trading Co., components establishmen
Ltd t
Zhejiang
Investment
Sanhua
Refrigeration and
Commercial 165,529 Zhejiang 100.00%
components establishmen
Refrigeration
t
Co. Ltd
Investment
Sanhua
37.55 million and
International USA Business 100.00%
USD establishmen
Inc.
t
Wuhu 30,000 Anhui Refrigeration 100.00% Investment
171
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Sanhua components and
Automatic establishmen
Control t
Components
Co., Ltd
2. Changes in the scope of consolidation due to other reasons
（1）Increase in consolidation scope
Subsidy name Equity acquisition method Date of equity acquisition
Zhejiang Sanhua Intelligent Drive Co., Ltd. New investments 2024-06-04
Zhejiang Shengtai Paper Industry Co., Ltd. New investments 2024-06-20
SANHUATROY PROPERTY
New investments 2024-06-28
MANAGEMENT,LLC
（2）Reduction in consolidation scope
Subsidy name Equity acquisition method Date of equity acquisition
American Tubing International Leverage
Liquidation and cancellation 2024-01-24
Lender LLC
3. significant wholly-owned subsidiaries
As of June 30, 2024, the company has no significant wholly-owned subsidiaries.
4. Equity in joint ventures or associates
（1）Significant joint ventures and associates
As of June 30, 2024, the company has no significant joint ventures and associates.
（2）Aggregated financial information of insignificant joint ventures and associates
Unit: RMB
Closing balance/Current Opening balance/Preceding
Items
period cumulative period comparative
Associates
Total book value of investment 37,094,293.30 37,924,431.29
Total of the following items calculated by
shareholding ratio 5,419,862.01 5,296,750.30
-Net profit 5,419,862.01 5,296,750.30
172
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Closing balance/Current Opening balance/Preceding
Items
period cumulative period comparative
-Total comprehensive income 5,419,862.01 5,296,750.30
Ⅸ. Risks Related to Financial Instruments
In risk management, the Company aims to seek the appropriate balance between the risks and benefits from
its use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on
the Company’s financial performance, so as to maximize the profits of shareholders and other equity investors.
Based on such risk management objectives, the Company’s risk management policies are established to identify
and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and
adherence to limits on a timely and reliable basis.
The company faces various risks related to financial instruments in daily activities, mainly including credit
risk, liquidity risk, and market risk. The management has reviewed and approved policies for managing these
risks, summarized as follows.
(1) 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.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date, the Company assesses whether the credit risk on a financial instrument has
increased significantly since initial recognition. When assessing whether the credit risk has increased significantly
since initial recognition, the Company takes into account reasonable and supportable information, which is
available without undue cost or effort, including qualitative and quantitative analysis based on historical data,
external credit risk rating, and forward-looking information. The Company determines the changes in default risk
of financial instruments during the estimated lifetime through comparison of the default risk at the balance sheet
date and the initial recognition date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly when one or
more of the following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, at the balance sheet date, the probability of
default in the remaining lifetime has risen by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial
position, present or expected changes in technology, market, economy or legal environment that will have
significant adverse impact on the debtor’s repayment ability.
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred, of which
the standard is consistent with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty,
having granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default, loss rate of
173
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
default, and exposure to default risk. The Company develops a model of the probability of default, loss rate of
default, and exposure to default risk on the basis of quantitative analysis of historical data (e.g. counterparty
rating, guarantee measures and collateral type, payment method, etc.) and forward-looking information.
3. The adjustment table for the opening balance and closing balance of financial instrument loss reserves is
detailed in the relevant notes to these financial statements.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to
control such risks, the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with
relatively high credit levels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. The
Company selects credible and well-reputed customers based on credit assessment result, and conducts ongoing
monitoring on balance of receivables, to avoid significant risks in bad debts.
The Company conducts transactions with recognized and creditworthy customers, and credit risk is centrally
managed by customers. The Company had certain credit concentration risks, the account receivables mainly
originate from the top five customers with outstanding balances.The accounts receivable from the Company's
customers have been digitized and electronic, with certain credit liquidity. In addition, the balance of the
Company's accounts receivable basically does not hold collateral or other credit enhancements.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial
asset at the balance sheet.
(2) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations
associated with cash or other financial assets settlement, which is possibly attributable to failure in selling
financial assets at fair value on a timely basis, or failure in collecting liabilities from counterparties of contracts, or
early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company comprehensively utilizes financing tools such as notes settlement,
bank borrowings, etc. and adopts long-term and short-term financing methods to optimize financing structures,
and finally maintains a balance between financing sustainability and flexibility. The Company has obtained credit
limit from several commercial banks to meet working capital requirements and expenditures.
The financial liabilities of the company are classified and presented based on remaining time period till
maturity in the table below:
Closing balance
Items Carrying amount Contract amount Over 3
Within 1 year 1-3 years
not yet discounted years
Short-term borrowings 1,398,200,202.82 1,411,422,627.05 1,411,422,627.05
Notes payable 3,520,145,951.34 3,520,145,951.34 3,520,145,951.34
Accounts payable 5,033,866,555.98 5,033,866,555.98 5,033,866,555.98
Other payable 578,350,601.82 578,350,601.82 578,350,601.82
Non-current liabilities due 292,569,239.45 292,773,045.01 292,773,045.01
within one year
174
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Long-term borrowings 2,220,000,000.00 2,344,147,972.23 2,344,147,972.23
198,342,644.46 204,152,640.64 1,359,426.01 189,922,357.24
Lease liabilities 12,870,857.39
Subtotal 13,241,475,195.87 13,384,859,394.07 10,837,918,207.21 2,534,070,329.47
12,870,857.39
(Continued)
Opening balance
Items Carrying amount Contract amount
Within 1 year 1-3 years Over 3 years
not yet discounted
Short-term borrowings 1,212,150,378.85 1,220,397,152.46 1,220,397,152.46
Notes payable 3,416,711,594.64 3,416,711,594.64 3,416,711,594.64
Accounts payable 4,449,940,359.81 4,449,940,359.81 4,449,940,359.81
Other payable 250,642,662.86 250,642,662.86 250,642,662.86
Non-current liabilities due
1,440,093,253.93 1,451,597,753.93 1,451,597,753.93
within one year
Long-term borrowings 1,030,801,111.13 1,091,440,666.68 1,091,440,666.68
Lease liabilities 221,295,481.86 227,606,748.42 12,657,389.96 105,453,688.05 109,495,670.41
Subtotal 12,021,634,843.08 12,108,336,938.80 10,801,946,913.66 1,196,894,354.73 109,495,670.41
(3) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of
financial instruments due to changes in market price. Market risk mainly includes interest rate risk and exchange
rate risk.
1. Interest Rate Risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments
due to changes in market interest rates. Fair value interest risks arise from fixed-rate financial instruments. The
Company determines the proportion of fixed-rate financial instruments and floating-rate financial instruments
based on the market environment.
The scale of the company's liabilities need to pay interest is controlled at a reasonable level, and the burden
of financial expenses is not heavy. An increase in interest rates within a reasonable range will not have a
significant adverse impact on financial performance. The company's management will continue to monitor interest
rate levels and take necessary response measures in a timely manner based on the latest market conditions
2. Exchange Rate Risk
The exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in foreign exchange rates. The company's production base and sales market are
distributed in major developed and developing countries, including the United States, the European Union, Japan,
India, Mexico, etc. The business volume settled in euros and dollars has a certain proportion, and it faces
significant exchange rate risks. Based on internal risk control policies, the company's management has taken
several measures to respond exchange rate risks. Firstly, based on the trend of exchange rate fluctuations, timely
settlement or delayed settlement of export receipts; secondly, hedge foreign currency monetary assets and control
net risk exposure by overseas financing through domestic guarantee and external loan; thirdly, carry out forward
exchange settlement and foreign currency swap business, and lock in exchange rates.
175
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
The situation of the company's foreign currency monetary assets and liabilities at the end of the period can be
found in section 10 (7) of the notes to the consolidated financial statements for foreign currency monetary items in
section 64.
Ⅹ. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Fair value as of the balance sheet date
Level 1 fair Level 2 fair Level 3 fair
Item Name
value value value Total
measurement measurement measurement
I.Continuous fair value measurement -- -- -- --
(②).Held-for-trading financial assets 3,760,125.00 107,171,639.44 110,931,764.44
1.financial assets at fair value through profit
3,760,125.00 107,171,639.44 110,931,764.44
or loss.
(1) Debt instrument investment 100,000,000.00 100,000,000.00
(3) Derivative financial assets 3,760,125.00 7,171,639.44 10,931,764.44
Total amount of assets constantly measured
3,760,125.00 107,171,639.44 110,931,764.44
at their fair values
(②). Held-for-trading liabilities 266,451.91 36,636,918.40 36,903,370.31
Derivative financial liabilities 266,451.91 36,636,918.40 36,903,370.31
Total amount of liabilities constantly
266,451.91 36,636,918.40 36,903,370.31
measured at their fair values
II. Non-constant measurement at fair value -- -- -- --
2. Basis for determining the market price of items under first level constant and non-constant measurement
at fair value.
The fair value of futures contracts is measured at the exchange's open market quotes.
3. Items under second level constant and non-constant measurement at fair value, valuation technique
adopted, and qualitative and quantitative information of important parameters
The fair value of exchange rate contracts is measured based on the valuation amount of the host bank or the
forward foreign exchange rate announced by the Bank of China. Bank financing products are measured based on
the valuation amount of the issuer or manager.
XI. Related party relationships and transactions
1. Parent Company
Parent Place of Registered Holding Voting right
Business nature
Company registration capital proportion over proportion over
176
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
the Company the Company
Sanhua Holding Zhejiang Industrial 730 million
25.41% 45.31%
Group Co., Ltd Province Investment yuan
Remarks on the parent Company:
As of June 30, 2024, Sanhua Holding Group Co., Ltd. (Hereinafter referred to as SHG) directly holds
25.41% of the Company's shares, and indirectly holds 19.90% of the shares through its subsidiaries, for a total of
45.31% of the shares.
The final controllers of the Company are Mr Zhang Daocai, Mr Zhang Yabo and Zhang Shaobo.
2. Information about the Company's subsidiaries
Please refer to interest in other entities of notes to financial statements.
3. Joint ventures and associates of the Company
Please refer to notes to financial statements for details on the Company’s significant joint ventures and associates.
Details of other joint ventures or associates carrying out related party transactions with the Company in current
period or in preceding period but with balance in current period are as follows:
Associates or joint ventures Relationship with the Company
Qingdao Sanhua Jinlifeng Machinery Co., Ltd Joint ventures
Zhongshan Xuanyi Pipe Making Co., Ltd Joint ventures
4. Other related parties of the Company
Other related parties of the Company Relationship with the Company
Zhejiang Sanhua Green Energy Industrial Group Co., Ltd. Under the control of the same parent company
Hangzhou Sanhua Research Institute Co., Ltd. Under the control of the same parent company
Xinchang County Sanhua Property Management Co., Ltd. Under the control of the same parent company
Shanghai Sanhua Electric Co., Ltd Under the control of the same parent company
Under the control of the same parent company
Zhejiang Sanhua Zhicheng Real Estate Development Co.,
Ltd.
Zhejiang Haoyuan Technology Co., Ltd. Under the control of the same parent company
Wuhu Alda Technology Co., Ltd. Joint-stock enterprise of the parent company
Hangzhou Formost Material Technology Co., Ltd Joint-stock enterprise of the parent company
177
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Ningbo Jiaerling Pneumatic Machinery Co.,Ltd. Under the control of the same parent company
Tianjin Sanhua Industrial Park Management Co., Ltd. Under the control of the same parent company
Shaoxing Sanhua Zhiyue Real Estate Development Co., Under the control of the same parent company
Ltd.
Shanghai Shijia Technology Co., Ltd. Shi Jianhui as director
5. Related party transactions
（1）Purchase and sale of goods, rendering and receiving services
Purchase of goods and receiving of services
Unit: RMB
Approved Over the
Related Content of Current period Preceding period
Transaction Transaction Limit
parties transaction cumulative comparative
Limit or No
SHG Goods No 6,273.30
SHG Services No 4,182.20
ZSGE Goods 588,693.58 No
ZSGE Services 1,428,005.27 No 1,143,487.12
HSRI Goods 7,964,699.48 No
105,900,000.00
HSRI Services 62,283.39 No 22,686.23
NJPM Goods 576,873.12 No
ZHT Services 131,533.96 No
XCSP Services 546,925.25 No
TSIP Services 392,000.00 No
SSE Services 459,910.58 No 374,957.03
ZXPM Goods 6,923,209.33 20,000,000.00 No 10,034,439.41
QSJM Goods 2,209,810.55 4,500,000.00 No 3,405,710.00
WAT Goods 42,477.87 400,000.00 No 25,823.00
Sale of goods and rendering of services
Unit: RMB
Related parties Content of transaction Current period cumulative Preceding period comparative
SHG Goods 203,592.04 1,344.00
SHG Services 842,009.44
HFMT Services 74,377.36 74,377.36
ZHT Services 509,001.99
QSJM Goods 44,612.66 168,571.15
ZSGE Goods 521.59
HSRI Goods 39,278.74 910,665.24
WAT Services 104,912.24 39,875.00
SST Goods 18,795.00
Remarks of related transactions related to the purchase and sale of goods and the provision and acceptance of
services
Due to the large number of related parties involved in related party transactions between the parent Company
Sanhua Holding Group Co., Ltd and its subsidiaries, the transaction limit with Sanhua Holdings Group Co., Ltd.
178
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
and its subsidiaries is approved through a consolidated summary, with a purchase goods, purchase rent, equipment
lease, property management, water and electricity power, and service fee limit of 105.90 million yuan.
（2）Related party leases
The Company as the lessor：
Unit: RMB
Lessees Confirmed rental income
Types of asset leased
Current period Preceding period
SHG Office building 2,654,669.72
SHG Dormitory 16,640.05
HFMT Plant 150,171.42 150,171.42
WAT Plant 477,335.76 624,733.92
The Company as the lessee：
Unit: RMB
Lessor Confirmed rental expenses
Types of asset leased
Current period Preceding period
HSRI Office building 528,514.29
HSRI Plant 181,542.86
HSRI Dormitory 194,867.11
ZSGE Dormitory 555,761.15 317,647.48
ZSGE Plant 1,418,503.31 1,531,999.30
TSIP Plant 1,078,658.10
（3）Related party guarantees
Unit: RMB
Expiry date of Guarantee has been fulfilled
Guaranteed Amount Starting date of
parties guaranteed guarantee guarantee or No
SHG 2,400,000,000.00 2022.07.14 2027.01.29 NO
（4）Key management’s emoluments
Unit: RMB
Items Current period cumulative Preceding period comparative
Key management’s emoluments 11,285,801.70 9,480,670.20
（5）Other related party transactions
Unit: RMB
Preceding period
Abbreviation of associate Content of transaction Current period cumulative
comparative
Water and electricity
ZSGE 2,413,482.60 4,557,949.51
payment
Water and electricity
TSIP 1,399,386.22
payment
179
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Water and electricity
SHG 404,205.16 365,648.52
collection
Water and electricity
HFMT 161,275.44 308,968.43
collection
Water and electricity
HSRI 747,927.13 765,838.12
collection
Water and electricity
WAT 143,600.18 268,572.72
collection
Water and electricity
ZSGE 463,348.32 359,981.97
collection
Water and electricity
ZHT 14,619,762.17 11,096,279.60
collection
ZHT Steam payment 23,966,734.96 18,426,129.97
6. Balance due to or from related parties
（1）Receivables
Unit: RMB
Closing balance Opening Balance
Items Related parties Book balance Provision for Book balance Provision for
bad debts bad debts
Accounts receivable HSRI 21,329.62 1,066.48 2,542.50 127.13
Accounts receivable QSJM 60,412.31 3,020.62 10,000.00 500.00
Accounts receivable SST 21,238.35 1,061.92 48,205.80 2,410.29
Accounts receivable HFMT 418,761.25 20,938.06
Accounts receivable ZSGE 66,643.29 3,332.16
Accounts receivable SHG 65,434.25 4,305.77
Accounts receivable WAT 284,366.44 14,218.33
Other receivables SHG 20,681.18 1,034.06
Other receivables ZHT 670,000.00 67,000.00 670,000.00 67,000.00
Advances paid ZXPM 67,660.61
（2）Payables
Unit: RMB
Items Related parties Closing balance Opening Balance
Accounts payable HSRI 357,150.00 357,150.00
Accounts payable NJPM 355,624.66 300,646.95
Accounts payable QSJM 238,415.31
Accounts payable ZSGE 51,172.28
Accounts payable ZXPM 8,867,210.13
Other payables HFMT 100,000.00 100,000.00
Other payables ZSGE 4,324,140.18 387,216.00
Other payables TSIP 332,455.82 706,263.58
Other payables SSE 25,640.00
180
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
XII. Share-based payment
1. Overall information
√ Applicable □ Not applicable
Unit: RMB
Granted in the current Vested in the current Unlocked in the Expired in the
period period current period current period
Objects
Quanti Amoun
Quantity Amount Quantity Amount Quantity Amount
ty t
Management
10,490,000 99,384,600.00
personnel
R&D
10,185,000 95,739,000.00
personnel
Sales
2,400,000 22,560,000.00
personnel
Production
1,835,000 17,249,000.00
personnel
Total 24,910,000 234,932,600.00
Share options and other equity instruments outstanding at the balance sheet date
√ Applicable □ Not applicable
Share options outstanding Other equity instruments outstanding
Objects Range of exercise Remaining contractual Range of exercise Remaining contractual
prices life prices life
The adjusted restricted
stock grant price is From the date of grant,
9.40 yuan for the 2022 unlock in batches
Management
grant, the adjusted within 12 months after
personnel
restricted stock grant 12 months, 24 months,
price is 11.75 yuan for and 36 months.
the 2024 grant
The adjusted restricted
stock grant price is From the date of grant,
9.40 yuan for the 2022 unlock in batches
R&D personnel grant, the adjusted within 12 months after
restricted stock grant 12 months, 24 months,
price is 11.75 yuan for and 36 months.
the 2024 grant
The adjusted restricted
stock grant price is From the date of grant,
9.40 yuan for the 2022 unlock in batches
Sales personnel grant, the adjusted within 12 months after
restricted stock grant 12 months, 24 months,
price is 11.75 yuan for and 36 months.
the 2024 grant
The adjusted restricted
stock grant price is From the date of grant,
9.40 yuan for the 2022 unlock in batches
Production
grant, the adjusted within 12 months after
personnel
restricted stock grant 12 months, 24 months,
price is 11.75 yuan for and 36 months.
the 2024 grant
Other Remarks:
(1) Incentive plan for Restricted stock and Stock Appreciation Rights implemented in 2022
181
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
In May 2022，the Company implemented a restricted stock and stock appreciation rights incentive plan for
core employees. Among them，the number of restricted stocks granted was 17.5850 million shares, the number of
stock appreciation rights granted was 0.4850 million shares and the grant price per share was RMB 10.00，The
grant date was May 31, 2022, and it will be unlocked year by year in batches at a ratio of 30%:30%:40%.
In September 2022, the Company implemented the 2022 semi-annual equity distribution. In June 2023, the
Company implemented the 2022 equity distribution. In October 2023, the Company implemented the 2023 semi-
annual equity distribution. In June 2024, the Company implemented the 2023 equity distribution. According to the
method stipulated in the "2022 Restricted Stock Incentive Plan" and "2022 Stock Appreciation Rights Incentive
Plan" , the exercise price and quantity of the underlying stocks involved were adjusted accordingly. After the
adjustment, the number of restricted stocks granted was 17.5850 million shares, the number of stock appreciation
rights granted was 0.4850 million shares and the grant price per share was RMB 9.40.
(2) Incentive plan for Restricted stock and Stock Appreciation Rights implemented in 2024
In May 2024，the Company implemented a restricted stock and stock appreciation rights incentive plan for
core employees. Among them，the number of restricted stocks granted was 24.5700 million shares , the number
of stock appreciation rights granted was 0.5600 million shares, and the grant price per share was RMB 12.00，
The grant date was May 13 and June 3 in 2024, and it will be unlocked year by year in batches at a ratio of
30%:30%:40%.
In June 2024，the Company implemented a restricted stock and stock appreciation rights incentive plan for
core employees. Among them，the number of restricted stocks granted was 0.3400 million shares and the grant
price per share was RMB 11.75.The grant date was June 3, 2024, and it will be unlocked year by year in batches
at a ratio of 30%:30%:40%.
In June 2024, the Company implemented the 2023 equity distribution. According to the method stipulated in
the "2024 Restricted Stock Incentive Plan"and "2024 Stock Appreciation Rights Incentive Plan", the exercise
price and quantity of the underlying stocks involved were adjusted accordingly. After the adjustment, the number
of restricted stocks granted was 24.9100 million shares, the number of stock appreciation rights granted was
0.5600 million shares, and the grant price per share was RMB11.75.
2.Equity-settled share-based payment
(1) Incentive plan for Restricted stock implemented in 2022
Unit: RMB
Determination method and important parameters Calculated based on the closing price of the stock on the
for grant-date fair value of equity instruments grant date minus the grant price of the restricted stock.
Determination method for the number of equity
[Note]
instruments expected to vest
Reasons for significant difference between the
Not applicable
estimates in current period and preceding period
Capital reserve accumulated due to equity-settled
109,479,022.14
share-based payment
Note：In 2022, the Company initially granted 17.5850 million restricted stocks to incentive object. The
number is the base, it will be unlocked year by year in batches at a ratio of 30%:30%:40%. The Company
estimates the number of exercisable equity instruments on the following basis: the Company's operating
performance can meet the target，the future voluntary turnover rate of the incentive objects is 0%，and the
performance appraisal level is above C (the unlocking coefficient is 1).
(2) Incentive plan for Restricted stock implemented in 2024
Unit: RMB
182
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Determination method and key parameters of Calculated based on the closing price of the stock on the
grant-date fair value of equity instruments grant date minus the grant price of the restricted stock.
Determination method for the number of equity
[Note]
instruments expected to vest
Reasons for significant difference between the
estimates in the current period and preceding Not applicable
period
Capital reserve accumulated due to equity-settled
21,389,488.21
share-based payment
Note：In 2024, the Company initially granted 24.9100 million shares restricted stocks to incentive object.
The number is the base, it will be unlocked year by year in batches at a ratio of 30%:30%:40%. The Company
estimates the number of exercisable equity instruments on the following basis: the Company's operating
performance can meet the target，the future voluntary turnover rate of the incentive objects is 0%，and the
performance appraisal level is above C (the unlocking coefficient is 1).
3. Cash-settled share-based payment
√ Applicable □ Not applicable
Determination method and key parameters of the
Calculated based on the closing price of the stock on the
fair value of liability incurred by the Company
balance sheet date minus the grant price of the stock
and to be settled in cash or other equity
appreciation rights
instruments
Accumulated amount of liabilities incurred due to
8,640,510.00
cash-settled share-based payment
4. Total share-based payments recognized in the current period
√ Applicable □ Not applicable
Objects Equity-settled share-based payment Cash-settled share-based payment
Management personnel 34,072,715.35 760,620.00
Total 34,072,715.35 760,620.00
XIII. Commitments and contingencies
1. Significant commitments
Significant contingencies existing on the balance sheet date
With the approval of the CSRC in document CSRC License [2021] No. 168, the Company publicly issued 30
million convertible corporate bonds in June 2021, with a face value of 100 yuan each and net amount of raised
funds is 2,987.53 million yuan. In addition to replenishing working capital, the raised funds are committed to the
following projects:
Investment projects with
Committed capital Actual capital
raised funds
Annual production of 65
million sets of commercial
refrigeration and air
1487 million yuan 1166.6493 million yuan
conditioning intelligent control
components construction
project
Annual output of 50.5 million 698 million yuan 322.7998 million yuan
183
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
sets of high efficiency and
energy saving refrigeration
and air conditioning control
components project
XIV. Events after the balance sheet date
1. Dividend distribution
According to the semi-annual profit distribution plan of 2024 approved by the board of directors of the
Company on August 28, 2024, cash dividends of 1.0 yuan (including tax) for every 10 shares will be distributed to
all shareholders based on 3,731,414,614 shares on August 20, 2024, no bonus shares will be given, and no capital
reserve will be converted into share capital. A total of 373,141,461.40 yuan was distributed.
XV. Other Significant Events
1. Segment information
（1）Basis for reportable segments and the accounting policy
Reportable segments are identified based on operating segments which are determined based on the structure
of the Company’s internal organization, management requirements and internal reporting system, etc., and
identified the reportable segments based on products.
（2）Financial information of the reporting subsection
Unit: Ten thousand yuan RMB
Jan-Jun, 2024
Items Total
Operating revenue Operating cost Total assets
liabilities
Refrigeration and air-conditioning
827,870.03 599,725.19 931,914.06
electrical parts business 2,063,551.47
Auto parts business 539,737.19 392,313.84 1,246,527.58 552,276.70
Total 1,367,607.22 992,039.03
3,310,079.05 1,484,190.76
Jan-Jun, 2023
Items Total
Operating revenue Operating cost Total assets
liabilities
Refrigeration and air-conditioning
770,602.11 572,478.82 1,921,013.83 1,067,515.32
electrical parts business
Auto parts business 482,289.95 358,387.27 994,883.70 440,556.08
Total 1,252,892.06 930,866.09 2,915,897.53 1,508,071.40
184
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
XVI. Notes to items of parent Company financial statements
1. Accounts receivable
（1）Disclosure of accounts receivable by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year 1,541,924,544.21 712,624,340.09
1 to 2 year 565,333.11 5,846,510.80
2 to 3 year 5,726,250.95
Total 1,548,216,128.27 718,470,850.89
（2）Disclosure of accounts receivable by bad debt provision method
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Book balance Book balance
bad debt bad debt
Catego Carryin
Accru Carrying Accru
ry g
Propo Amoun ed amount Propo Amoun ed
Amount Amount amount
rtion t propor rtion t propor
tion tion
Receiv
ables
with
provisi
on 1,370,050, 5,726,25 1,364,323, 531,943, 5,690,81 526,252,
88.49% 0.42% 74.04% 1.07%
made 072.87 0.95 821.92 381.96 7.36 564.60
on an
individ
ual
basis
Includi
ng:
Receiv
ables
with
provisi
on 178,166,0 8,936,56 169,229,4 186,527, 9,334,15 177,193,
11.51% 5.02% 25.96% 5.00%
made 55.40 9.42 85.98 468.93 8.12 310.81
on a
collecti
ve
basis
Includi
ng:
1,548,216, 100.00 14,662,8 1,533,553, 718,470, 100.00 15,024,9 703,445,
Total 0.95% 2.09%
128.27 % 20.37 307.90 850.89 % 75.48 875.41
Provision made on an individual basis:
Unit: RMB
Name Opening balance Closing balance
185
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Book balance Provision for Book balance Provision Accrued Accrued
bad debt for bad proportion reason
debt
Dayou Vinya
(Thailand) Co., 5,690,817.36 5,690,817.36 5,726,250.95 5,726,250.95 100.00%
Ltd
Several
526,252,564.60 1,364,323,821.92
subsidiaries
Total 531,943,381.96 5,690,817.36 1,370,050,072.87 5,726,250.95
Provision made on a collective basis:
Unit: RMB
Closing balance
Items Book balance Provision for Accrued
bad debt proportion
Within 1 year 177,600,722.29 8,880,036.11 5.00%
1 to 2 year 565,333.11 56,533.31 10.00%
Total 178,166,055.40 8,936,569.42
If the provision for bad debt of accounts receivable is accrued in accordance with the general expected credit loss
model:
□ Applicable √ Not applicable
（3）Provision for bad debt accrued, recovered or reversed in current period
Provision for bad debt accrued in current period:
Unit: RMB
Changed amount of the current period
Opening Closing
Category Recovered or Write
balance Accrued Others balance
reversed off
Provision made on an individual
5,690,817.36 35,433.59 5,726,250.95
basis
Receivables with provision
9,334,158.12 397,588.70 8,936,569.42
made on a collective basis
Total 15,024,975.48 35,433.59 397,588.70 14,662,820.37
（4）Top 5 of accounts receivable
Closing balance of top 5 debtors totaled 1398.7028 million yuan, accounting for 90.34% of the total closing
balance of accounts receivable, and provision for bad debts made thereon totaled 5.1914 million yuan.
2. Other receivables
Unit: RMB
Items Closing balance Opening balance
Dividend receivable 550,000,000.00
Other receivables 467,355,212.61 1,719,591,236.02
Total 467,355,212.61 2,269,591,236.02
（1）Dividend receivable
Classification of dividends receivable
186
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Unit: RMB
Items Closing balance Opening balance
Zhejiang Sanhua Climate & Appliance Controls Group
550,000,000.00
Co.,Ltd
Total 550,000,000.00
（2）Other receivables
1）Other receivables categorized by nature
Unit: RMB
Other receivables categorized by nature Closing balance Opening balance
Principal and interest of capital assistance to
457,936,308.41 1,708,500,801.49
subsidiaries
Tax refund receivable 3,737,098.02 6,387,103.55
Others 6,250,553.53 5,207,052.58
Total 467,923,959.96 1,720,094,957.62
2）Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 466,567,302.54 1,718,634,775.79
1 to 2 years 814,723.42 793,523.42
2 to 3 years 141,934.00 481,517.41
Over 3 years 400,000.00 185,141.00
Total 467,923,959.96 1,720,094,957.62
3）Disclosure of other receivables by bad debt provision method
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Book value Book value
bad debt bad debt
Categor Net
Accru Accru Net book
y book
Propor Amou ed Propor Amou ed value
Amount value Amount
tion nt propor tion nt propor
tion tion
Receiv
ables
with
provisi
on 461,673,4 461,673,4 1,714,887, 1,714,887,
98.66% 99.70%
made 06.43 06.43 905.04 905.04
on an
individ
ual
basis
187
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Includi
ng:
Receiv
ables
with
provisi
6,250,553 568,74 5,681,806 5,207,052. 503,72 4,703,330.
on 1.34% 9.10% 0.30% 9.67%
.53 7.35 .18 58 1.60 98
made
on a
collecti
ve basis
Includi
ng:
467,923,9 100.00 568,74 467,355,2 1,720,094, 100.00 503,72 1,719,591,
Total 0.12% 0.03%
59.96 % 7.35 12.61 957.62 % 1.60 236.02
Provision made on an individual basis:
Unit: RMB
Opening balance Closing balance
Book balance Provision for Book balance Provision Accrued Accrued
Name
bad debt for bad proportion reason
debt
Tax refund
6,387,103.55 3,737,098.02
receivable
Several subsidiaries 1,708,500,801.49 457,936,308.41
Total 1,714,887,905.04 461,673,406.43
Provision made on a collective basis:
Unit: RMB
Closing balance
Items
Book balance Provision for bad debt Accrued proportion
Within 1 year 4,893,896.11 244,694.81 5.00%
1 to 2 year 814,723.42 81,472.34 10.00%
2 to 3 year 141,934.00 42,580.20 30.00%
Over 3 years 400,000.00 200,000.00 50.00%
Total 6,250,553.53 568,747.35
The remarks of determination of a collective basis:
Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
Phase I Phase II Phase III
Provision for bad Next 12②month Lifetime expected Lifetime expected
Total
debt expected credit credit losses (credit credit losses (credit
losses not impaired) impaired)
Balance on January
187,343.54 79,352.34 237,025.72 503,721.60
1, 2024
Balance in current
period on January 1,
2024
Provision made in
57,351.27 2,120.00 5,554.48 65,025.75
current period
Balance on June 30,
244,694.81 81,472.34 242,580.20 568,747.35
2024
Classification basis and bad debt provision ratio for each stage
188
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Loss provisions for significant changes in book value in current period
□ Applicable √ Not Applicable
4）Top 5 debtors with the largest other receivables balances
Unit: RMB
Proportion to
Provision for
the total
Nature of bad debt at the
Debtors Closing balance Age balance of
receivables end of the
other
period
receivables
Financial Within 1
Hangzhou Leaderway
aid to 100,180,000.00 year(including 21.41%
Electronics Co., Ltd
subsidiaries 1 year)
Sanhua New Energy
Financial Within 1
Thermal Management
aid to 77,000,000.00 year(including 16.46%
Technology (Hangzhou)
subsidiaries 1 year)
Co., Ltd
Financial Within 1
Shaoxing Shangyu Sanli
aid to 60,075,600.00 year(including 12.84%
Copper Industry Co., Ltd
subsidiaries 1 year)
Sanhua. (Jiangxi) Financial Within 1
Automatic Control aid to 45,220,200.00 year(including 9.66%
Components Co., Ltd. subsidiaries 1 year)
Wuhu Sanhua Financial Within 1
Refrigeration Fittings Co., aid to 38,934,809.11 year(including 8.32%
Ltd. subsidiaries 1 year)
Total -- 321,410,609.11 -- 68.69%
3. Long-term equity investments
Unit: RMB
Closing balance Opening balance
Book balance Provision Book balance Provision
Items Carrying Carrying
for for
amount amount
impairment impairment
Investments
in 9,135,857,304.40 9,135,857,304.40 8,846,816,951.56 8,846,816,951.56
subsidiaries
Investments
in associates
31,885,619.02 31,885,619.02 33,316,317.01 33,316,317.01
and joint
ventures
Total 9,167,742,923.42 9,167,742,923.42 8,880,133,268.57 8,880,133,268.57
（1）Investments in subsidiaries
Unit: RMB
Opening Changed amount of the current period Closing Closing
Opening
balance Investmen Investme Provisio balance balance
Investees balance(Carr Othe
of ts nts n for (Carrying of
ying amount) rs
provisio increased decrease impairm amount) provisio
189
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
n for d ent n for
impairm impairm
ent ent
Zhejiang
Sanhua
Automotiv
2,736,994,138.0 9,332,423.0 2,746,326,56
e
3 6 1.09
Compone
nts Co.,
Ltd.
Sanhua
(Hangzho
u) Micro
2,482,473.4 664,145,128.
Channel 661,662,655.05
3 48
Heat
Exchanger
Co., Ltd
Zhejiang
Sanhua
Climate &
1,376,473,565.8 1,376,473,56
Appliance 0.00
8 5.88
Controls
Group
Co., Ltd
Sanhua
307,863,648.
Internatio 307,863,648.30 0.00
30
nal Inc.
Sanhua
Internatio
168,979,091 1,128,267,19
nal 959,288,106.40
.86 8.26
Singapore
Pte. Ltd
Wuhu
Sanhua
Automatic
294,350,613.
Control 294,042,343.47 308,269.58
05
Compone
nts Co.,
Ltd
Sanhua.
(Jiangxi)
Automatic
94,327,442.6
Control 94,227,657.67 99,784.94
1
Compone
nts Co.,
Ltd.
Xinchang
Sitong
Electrical
139,439,550.
and 138,940,625.94 498,924.78
72
Mechanic
al Co.,
Ltd
Zhejiang
Sanhua 1,659,471,139.2 3,706,418.4 1,663,177,55
Commerci 0 0 7.60
al
190
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Refrigerati
on Co. Ltd
Zhejiang
Sanhua 60,641,211.9
59,656,207.70 985,004.22
Trading 2
Co. Ltd
Changzho
u Lanke
62,541,614.6
four-way 62,541,614.60 0.00
0
valve co.,
LTD
Hangzhou
Leaderwa
93,088,021. 150,688,193.
y 57,600,171.50
59 09
Electronic
s Co., Ltd
Shaoxing
Shangyu
Sanli 33,853,588.4
33,693,798.36 159,790.04
Copper 0
Industry
Co., Ltd
Zhongsha
n Sanhua
Air
conditioni
ng
5,840,963.15 43,744.18 5,884,707.33
Refrigerati
on
Compone
nts Co.,
Ltd
Wuhan
Sanhua
Refrigerati
on 5,291,974.78 163,432.52 5,455,407.30
Compone
nts Co.,
Ltd
Zhongsha
n Sanhua
Refrigerati
on 6,803,867.94 225,128.78 7,028,996.72
Compone
nts Co.,
Ltd
Suzhou
Sanhua
Air-
9,261,580.01 83,202.18 9,344,782.19
Condition
er Parts
Co.,Ltd
Sanhua
AWECO
153,852,232.
Appliance 153,515,398.66 336,833.82
48
Systems
(Wuhu)
191
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Co., Ltd.
Zhejiang
Sanhua
Minshi
Automotiv 51,025,880.6
51,000,000.00 25,880.68
e 8
Compone
nts Co.,
Ltd
Sanhua
New
Energy
Thermal
Managem
8,521,928.7 151,169,423.
ent 142,647,494.92
8 70
Technolog
y
(Hangzho
u) Co.,
Ltd
Zhejiang
Xianji
30,000,000.0
Intelligent 30,000,000.00 0.00
0
Technolog
y Co., Ltd
8,846,816,951.5 289,040,352 9,135,857,30
Total
6 .84 4.40
（2）Investments in associates and joint ventures
Unit: RMB
Openi Changed amount of the current period
ng Inves
Open Closi
balan tment Closi
ing ng
ce inco Cha Cash ng
balan Adjust balan
(Carr me nge dividen Provi balan
ce of Invest Invest ment in ce of
Investe ying recog s in d/profit sion Ot ce
provi ments ments other provi
es amou nized othe declare for her (Carr
sion increa decre compre sion
nt under r d for impai s ying
for sed ased hensive for
equit equi distribu rment amou
impai income impai
y ty tion nt)
rment rment
meth
od
②. Joint ventures
②. Associates
Guoch
uang
Energy
Internet
Innovat
4,941,1 118,78 5,059,9
ion
51.03 8.95 39.98
Center
(Guang
dong)
Co.,
Ltd.
192
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Chong
qing
Tainuo 2,882,
18,304, 5,000,00 16,186,
Machin 088.1
176.79 0.00 264.94
ery 5
Co.,
Ltd.
Ningbo
Jinlifen
g
2,818,8 648,2 1,250,00 2,217,1
Machin
24.39 92.40 0.00 16.79
ery
Co.,
Ltd
Qingda
o
Sanhua
Jinlifen 1,143,
5,405,4 6,548,6
g 201.4
02.11 03.54
Machin 3
ery
Co.,
Ltd.
Xincha
ng
zhejian
g
energy
1,846,7 26,93 1,873,6
sanhua
62.69 1.08 93.77
compre
hensive
energy
co.
LTD
4,819,
Subtota 33,316, 6,250,00 31,885,
302.0
l 317.01 0.00 619.02
1
4,819,
33,316, 6,250,00 31,885,
Total 302.0
317.01 0.00 619.02
1
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
4. Operating revenue and Operating cost
Unit: RMB
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 3,407,774,422.17 2,518,245,943.61 3,187,342,829.65 2,446,802,656.79
Other operations 197,135,728.18 181,650,170.13 188,742,061.91 179,628,647.43
193
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
Total 3,604,910,150.35 2,699,896,113.74 3,376,084,891.56 2,626,431,304.22
5. Investment income
Unit: RMB
Items Current period Preceding period
cumulative comparative
Investment income from long-term equity investments
4,819,302.01 4,605,330.06
under equity method
Dividend income 502,800,000.00 46,862,001.82
Investment income of bank financing products 693,396.23 86,531.50
Gains and losses on settlement of futures contracts 7,141,899.96 4,141,032.14
Gains and losses on settlement of foreign exchange contract -1,700,514.34 530,000.00
Interest Income of fund 8,297,712.15 7,748,626.08
Advance payment gains 1,062,365.12 641,743.78
Total 523,114,161.13 64,615,265.38
6. Others
R&D expenses
Unit: RMB
Items Jan-Jun, 2024 Jan-Jun, 2023
Labor cost 94,115,272.33 79,766,562.72
Direct input expense 38,492,107.85 66,348,245.97
Depreciation and amortization expense 6,072,563.17 5,448,825.42
Mold manufacturing expense 2,414,384.77 911,150.50
Royalties 2,074,810.41 632,046.18
Outsourcing R&D expense 484,504.85 356,340.18
Others 2,645,272.63 339,063.34
Total 146,298,916.01 153,802,234.31
XVII. Supplementary information
1. Non-recurring profit or loss in current period
√ Applicable □ Not Applicable
Unit: RMB
Items Amount Remarks
Gains or loss on disposal of non-current
-6,146,341.57
assets
Government grants included in profit or loss
(excluding those closely related to operating
activities of the Company, satisfying
51,359,679.62
government policies and regulations, and
continuously enjoyed with certain
quantity/quota based on certain standards)
Gains or losses on changes in fair value of In order to avoid the price risk of raw
held-for-trading financial assets, held-for- materials and prevent exchange rate risk, the
trading financial liabilities , and investment -62,865,867.03 Company and its subsidiaries have carried out
income from disposal of held-for-trading derivatives business, including futures
financial assets,held-for-trading financial contracts and foreign exchange forward
194
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
liabilities, and other debt investments, contracts. In January to June, 2024, the
excluding those arising from hedging futures gain was 13.1419 million yuan and
business related to operating activities the forward loss was 76.0077 million yuan; In
January to June, 2023, the futures gain was
4.3452 million yuan and the forward loss was
137.7080 million yuan. So, the amount of
non-recurring gains and losses in the first half
of both years fluctuated significantly.
Meanwhile, the exchange income was
42.0242 million yuan in January to June,
2024, the exchange income was 194.1929
million yuan in January to June, 2023.
According to “the No. 1 Explanatory
Announcement on Information Disclosure for
Companies Offering Their Securities to
Public - Non-recurring Profit or Loss”,
exchange gains and losses are recurring gains
and losses, and Futures and forward gains and
losses are non-recurring gains and losses.
Other non-operating revenue or expenditures
1,932,406.50
except the above items
Other items of profit or loss that meet the
1,520,214.66
definition of non-recurring profit or loss
Less: Enterprise income tax affected -3,260,821.02
Non-controlling interest affected (after
1,372,561.97
tax)
Total -12,311,648.77 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ Not Applicable
The Company has no specific circumstances of other profit and loss items that meet the definition of non-
recurring profit and loss.
For items defined as non-recurring profit or loss according to “the No. 1 Explanatory Announcement on
Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Profit or Loss”, non-
recurring profit or loss items listed in the said document defined as project of recurring profit or loss, specify the
reason
□ Applicable √ Not Applicable
2. ROE and EPS
EPS (yuan/share)
Weighted average
Profit of the reporting period Diluted
ROE
Basic EPS EPS
Net profit attributable to shareholders of ordinary shares 8.32% 0.40 0.40
Net profit attributable to shareholders of ordinary shares
8.39% 0.41 0.41
after deducting non-recurring profit or loss
195
Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Semi-Annual Report
3. Financial data variance between financial reporting prepared under domestic and abroad accounting
standards
（1）Differences of net profits and net assets in the financial reports disclosed according to the IFRS and
Chinese Accounting Standards
□ Applicable √ Not Applicable
（2）Differences of net profits and net assets in the financial reports disclosed according to the overseas
accounting standards and Chinese Accounting Standards
□ Applicable √ Not Applicable
（3）Explanation of the reasons for differences in accounting data under domestic and foreign accounting
standards. If adjusting for differences in data already audited by overseas auditing institutions, the name of
the overseas institution should be indicated
□ Applicable √ Not Applicable
196
