Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Shenzhen Topband Co., Ltd.
Annual Report 2023
[Date of disclosure]
Topband Investor Relations Applet
March 2024
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Annual Report 2023
Section I Important Notes, Contents and Interpretations
The Board of Directors, the Board of Supervisors and directors, supervisors and senior
executives of the Company hereby guarantee that the content set out in the Annual Report is free
from false records, misleading statements or major omissions, and undertake joint and several
liabilities for the authenticity, accuracy and integrity of the report.
Wu Yongqiang, the principal of the Company, Luo Muchen, the accounting head, and Luo
Muchen, the accounting department head (the accountant in charge) hereby guarantee the truth,
accuracy and completeness of the financial statements in this Annual Report.
All directors have attended the Board Meeting at which this Annual Report was deliberated.
Forward-looking statements such as future plans and development strategies covered in the
Report involve uncertainty, so they do not represent the Company's profit forecasts, nor are they
regarded as the substantive commitment to investors.
Topband has no material risks that affect its financial position and sustained profitability, and
the possible risks in the operation of the Company are described in detail in Section III
"Management Discussion and Analysis" of the Report. Investors are kindly reminded to pay
attention to relevant content.
The profit distribution plan approved by the Board of Directors of the Company: cash
dividends of RMB 0.6 (tax inclusive) per 10 shares are paid to all shareholders based on the
1,229,476,988 shares (excluding the repurchased shares and restricted shares to be canceled), 0
shares of bonus shares (tax inclusive), and reserves would not be converted into share capital. If
the Company's total share capital changes before the implementation of the profit distribution plan
due to share repurchase, cancellation of restricted shares or other reasons, the total distribution
amount will be adjusted accordingly based on the principle of maintaining the same distribution
ratio per share.
The Report is prepared in Chinese and translated into English. Should there be any
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discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
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Chairman's Statement
Dear shareholders, partners, and all friends concerning about Topband,
Thank you for your continuous attention and firm support to Topband. In 2023, we were
faced with multiple challenges such as demand and industry inventory, but we remained confident
in the future development prospects of the industry, increased R&D investment in key new areas
and accelerated our implementation of overseas businesses, laying a solid foundation for growth
in the future while realizing sound and healthy operations.
In 2023, we realized operating income of RMB 8.992 billion, up 1.32% YoY, and net profit
of RMB 512 million, up 5.76% YoY. Our product competitiveness and internal efficiency were
improved, with a 2.17% YoY increase in gross profit margin. In addition, we made three key
advances:
I. Reduced costs and increased efficiency, with the operational efficiency and
significantly improved. We clearly set out our strategy to reduce costs and increase efficiency in
2023. All departments worked together and effectively controlled the costs of raw materials and
various expenses, significantly reducing the total costs. Meanwhile, the inventory dropped
significantly and the inventory turnover was improved, significantly improving our health
indicators and operational efficiency.
II. Technological innovation for high-value growth. In 2023, with our existing technology
and product platforms, we strengthened our machine and system solution capabilities and
increased the value volume of our products. We also accurately identified market demands and
enhanced the value chain by self-defined products. In 2023, we increased R&D investment and
business integration in the new energy business segment, and launched many new products that
are autonomous and controllable, represented by DC charging piles and all-in-one industrial and
commercial storage products. This will drive our future growth and become our third growth
curve.
III. International layout with highlighted overseas strengths. After years of international
strategy implementation and promotion, the Vietnam and India bases have achieved large-scale
mass production and stable operation, with excellent profitability. The Romanian and Mexican
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bases have realized mass production, marking our significant breakthroughs in overseas markets.
We always believe that the "intelligent, low-carbon and international" long-term trend
remains unchanged. The Company is about to see major development opportunities in the context
of the emergence of smart products, the transformation from the old economy to the new one and
the increase in international market demand. In 2024, we will focus on the following three
strategic priorities.
First, accelerate overseas marketing. More than half of our business comes from overseas
markets. Based on the success of "manufacturing exports", we will accelerate "market expansion
overseas". In 2024, we will ask the marketing team to actively expand the market overseas. We
shall not only seize the opportunity of order transfer, but also develop the demand in the local
market to build Topband into a truly international firm.
Second, accelerate the development of new energy business. As our growth driver, new
energy business greatly relies on our technological advantages in batteries, power sources,
electronic control and motors, focuses on energy storage and charging, and provides self-defined
products and customized solutions. We will further concentrate our resources to create a product
matrix and build a unified market platform for rapid development.
III. Accelerate the creation of competitive intelligent products and their application in
emerging industries. With the rapid development of AI and humanoid robotics, the intelligent
industry has ushered in unprecedented development opportunities. As an enterprise with more
than 20 years of technology accumulation, Topband has built up strong capabilities in product
innovation and implementation. In 2024, we will be committed to deepening our insight into the
market demand, and defining and creating more autonomous and controllable core products; at
the same time, we will further explore new industrial opportunities, especially in robotics and AI
applications. We will accelerate the development of core technologies such as mobile robots,
servo drives and control technologies to create industry-leading competitive products, and
actively develop top customers in industries.
Finally, I would like to express my thanks to all shareholders and partners for their trust and
support. We will continue to offer customers with excellent products and services, and to
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contribute to build a more "intelligent and low-carbon" world. I believe our joint efforts will help
Topband realize growth in 2024 again.
President of Shenzhen Topband Co., Ltd.
March 27, 2024
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Contents
Section I Important Notes, Contents and Interpretations ..................................................................................... 2
Section II Company Profile and Primary Financial Indicators ..........................................................................10
Section III Management Discussion and Analysis ................................................................................................17
Section IV Corporate Governance ......................................................................................................................... 66
Section V Environmental and Social Responsibility .......................................................................................... 103
Section VI Important Matters .............................................................................................................................. 105
Section VII Share Change and Shareholders ......................................................................................................117
Section VIII Information on Preferred Shares ................................................................................................... 127
Section IX Relevant Information of Bonds ..........................................................................................................128
Section X Financial Report ................................................................................................................................... 129
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Directory of documents for future reference
I. The financial statements bearing the signature and seal of the principal of the Company, the
accounting head and the accounting department head.
II. The original audit report bearing the seal of the accounting firm and the signature and seal of
the certified public accountant.
III. The originals of all the company documents publicly disclosed in newspapers designated by
the CSRC during the Reporting Period and the original manuscripts of announcements.
IV. The original of the Annual Report 2023 bearing the signature of the Chairman.
V. All the above documents are complete, and are available for reference at the office of the
Board of Directors of the Company.
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Interpretations
Terms Refer to Contents
Company, the Company, Topband Refer to Shenzhen Topband Co., Ltd.
RMB, RMB ten thousand Refer to RMB, RMB ten thousand
CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting Period Refer to January 1, 2023 - December 31, 2023
Articles of Association Refer to Articles of Association of Shenzhen Topband Co., Ltd.
Huizhou Topband Refer to Huizhou Topband Electrical Technology Co., Ltd.
YAKO Automation Refer to Shenzhen YAKO Automation Technology Co., Ltd.
SZACS Refer to Shenzhen Allied Control System Co., Ltd.
Topband Software Refer to Shenzhen Topband Software Technology Co., Ltd.
ORVIBO Refer to Shenzhen ORVIBO Technology Co., Ltd.
Ningbo Topband Refer to Ningbo Topband Intelligent Control Co., Ltd.
Meanstone Intelligent Refer to Shenzhen Meanstone Intelligent Technology Co., Ltd.
HANSC Intelligent Refer to Shenzhen HANSC Intelligent Technology Co., Ltd.
Hong Kong Topband Refer to Topband (Hong Kong) Co., Ltd.
Topband Romania Refer to Topband Smart Europe Company Limited S.R.L.
Topband Mexico Refer to Topband Mexico Company Limited
Topband Battery Refer to Shenzhen Topband Battery Co., Ltd.
Ninghui Lithium Battery Refer to Taixing Ninghui Lithium Battery Co., Ltd.
HVAC Refer to Heating, Ventilation and Air Conditioning
IOT Refer to Internet of Things
AI Refer to Artificial Intelligence
BLDC Motor Refer to Brushless DC Motor
BG and BU Refer to Business Group and Business Unit
IPD Refer to Integrated Product Development
ISC Refer to Integrated Supply Chain
PLC Refer to Programmable Logic Controller
AIGC Refer to Artificial Intelligence Generated Content
1C1C3S Refer to Cell, cloud platform, BMS, PCS, EMS
Refer to An Internet-based, data-trained and text-generated deep learning model
GPT
(Generative Pre-Trained Transformer)
Refer to A language representation model (Bidirectional Encoder Representations
BERT
from Transformers)
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Section II Company Profile and Primary Financial Indicators
I. Company information
Stock abbreviation Topband Stock code 002139
Listed stock exchange Shenzhen Stock Exchange
Chinese name of the Company Shenzhen Topband Co., Ltd.
Chinese abbreviation of the Company
Topband
name
Name of the Company in foreign
Shenzhen Topband Co., Ltd.
language (if any)
Abbreviation of the Company name in
Topband
foreign language (if any)
Legal representative of the Company Wu Yongqiang
Address: F1, Topband Industrial Park Phase II, Keji Second Road, Tangtou Community,
Registered address
Shiyan Sub-district, Bao'an District, Shenzhen
Postal code of registered address 518108
The registered address of the Company is changed from "Room 413, Block B, Research
Changes of the Company's registered Institute of Tsinghua University, High-tech Industrial Park, Yuehai Sub-district, Nanshan
address District, Shenzhen" to "F1, Topband Industrial Park Phase II, Keji Second Road, Tangtou
Community, Shiyan Sub-district, Bao'an District, Shenzhen".
Topband Industrial Park, Keji Second Road, Shiyan Sub-district, Bao'an District,
Office address
Shenzhen
Postal code of office address 518108
Website http://www.topband.com.cn
Email wenzh@topband.com.cn
II. Contact person and contact information
Secretary of the Board of Directors Representative of securities affairs
Name Wen Zhaohui Zhang Yuhua
Topband Industrial Park, Keji Second Road, Topband Industrial Park, Keji Second Road, Shiyan Sub-
Address
Shiyan Sub-district, Bao'an District, Shenzhen district, Bao'an District, Shenzhen
Tel 0755-26957035 0755-26957035
Fax 0755-26957440 0755-26957440
Email wenzh@topband.com.cn zhangyuhua@topband.com.cn
III. Information disclosure and storage place
Website of the stock exchange where the Company discloses the
http://www.cninfo.com.cn
Annual Report
Name and website of the media where the Company discloses
Securities Times and CNINFO (http://www.cninfo.com.cn)
the Annual Report
Location where the Company's annual report is available Office of the Board of Directors of the Company
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IV. Changes in registration
Unified social credit code 91440300192413773Q
Changes in the main business of the Company since listing (if
No changes
any)
Previous changes in controlling shareholders (if any) No changes
V. Other relevant information
Accounting firm engaged by the Company
BAKER TILLY International Accounting Firm (Special General
Name of accounting firm
Partnership)
Area A-1 and A-5, Building 68, No. 19, Chegongzhuang West
Office address of accounting firm
Road, Haidian District, Beijing
Name of accountants Chen Zhigang, Zhao Yang, Liu Zhaoyu
Sponsor institution engaged by the Company to perform ongoing supervisory duties during the Reporting
Period
□ Applicable Not applicable
Financial consultant engaged by the Company to perform ongoing supervisory duties during the Reporting
Period
□ Applicable Not applicable
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VI. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
Yes □ No
Reasons for retrospective adjustments or restatements
Changes in accounting policies
Increase or
decrease
compared
2022 2021
with the
2023 previous
year
After Before
Before adjustment After adjustment After adjustment
adjustment adjustment
Operating income
8,992,342,169.08 8,875,099,137.06 8,875,099,137.06 1.32% 7,767,034,835.03 7,767,034,835.03
(RMB)
Net profit attributable
to shareholders of
515,513,995.18 582,655,258.38 583,000,286.76 -11.58% 564,964,282.18 564,964,282.18
listed companies
(RMB)
Net profit attributable
to shareholders of
listed companies after
511,919,208.82 483,703,060.80 484,048,089.18 5.76% 432,038,218.88 432,038,218.88
deducting non-
recurring profit and
loss (RMB)
Net cash flow from
operating activities 1,465,948,499.18 491,055,076.33 491,055,076.33 198.53% -224,562,545.86 -224,562,545.86
(RMB)
Basic earnings per
0.41 0.46 0.46 -10.87% 0.47 0.47
share (RMB/share)
Diluted earnings per
0.41 0.46 0.46 -10.87% 0.47 0.47
share (RMB/share)
Weighted return on
8.54% 10.85% 10.85% -2.31% 13.11% 13.11%
average equity
Change at
the end of
the current
Reporting
Period
End of 2022 End of 2021
compared
End of 2023 with the
end of the
previous
year
After Before
Before adjustment After adjustment After adjustment
adjustment adjustment
Total assets (RMB) 11,184,119,392.80 10,364,556,848.34 10,385,326,794.56 7.69% 9,606,992,402.39 9,606,992,402.39
Net assets attributable 6,284,917,468.50 5,728,523,458.33 5,729,233,981.14 9.70% 5,028,315,406.63 5,028,315,406.63
to shareholders of
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listed companies
(RMB)
Reasons for changes in accounting policies
Changes in the accounting policies adopted by the Company during the Reporting Period: The Ministry of
Finance released and implemented the Circular on Issuing Interpretation No. 16 of Accounting Standards for
Business Enterprises (hereinafter referred to as "Interpretation No. 16") on November 30, 2022, in which, the
requirement on the "accounting practice for deferred income taxes related to assets and liabilities generated by
individual transactions which shall not be exempted from initial confirmation" shall be implemented from
January 1, 2023.If, at the beginning of the earliest period of the financial statements to which the Interpretation
No. 16 applies for the first time, taxable temporary differences and deductible temporary differences arise from
lease liabilities and right-of-use assets recognized as a result of a single transaction to which the Interpretation
No. 16 applies, as well as from recognized projected liabilities related to abandonment obligations and related
assets, the Company will adjust the cumulative effects to the opening retained earnings and other related
financial statement items in the earliest period for which the financial statements are presented in accordance
with the provisions of the Interpretation No. 16 and those of the Accounting Standards for Business Enterprises
No. 18 - Income Taxes.
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The Company's net profit before and after deducting the non-recurring profit and loss (whichever is lower)
is negative in the last three fiscal years, and the audit report of the latest year shows that the uncertainty in the
Company's sustainable operation ability
□ Yes No
The net profit before and after deducting the non-recurring profit and loss (whichever is lower) is negative
□ Yes No
VII. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial statements disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable Not applicable
There is no difference in net profit and net assets between financial statements disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP during the Reporting
Period.
2. Difference between the net profit and net assets in the financial statements disclosed in accordance
with both foreign accounting standards and Chinese accounting standards at the same time
□ Applicable Not applicable
There is no difference in net profit and net assets between financial statements disclosed in accordance with
Overseas Accounting Standards and those disclosed in accordance with PRC GAAP during the Reporting
Period.
VIII. Quarterly primary financial indicators
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 1,995,012,860.06 2,261,108,293.66 2,105,207,153.51 2,631,013,861.85
Net profit attributable to shareholders of listed
96,349,704.80 161,690,987.36 118,356,317.31 139,116,985.71
companies
Net profit attributable to shareholders of listed
companies after deducting non-recurring profit and 91,312,201.52 162,791,653.28 125,264,407.79 132,550,946.23
loss
Net cash flow from operating activities 175,657,147.57 352,185,323.61 474,191,217.61 463,914,810.39
Whether there are major differences between the above financial indicators or the total and the financial
indicators in the quarterly report and semi-annual report disclosed by the Company
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□ Yes No
IX. Items and amount of non-recurring profit and loss
Applicable □ Not applicable
Unit: RMB
Items Amount of 2023 Amount of 2022 Amount of 2021 Description
Profits and losses on disposal of non-current
assets (including the write-off portion of the -11,399,766.84 -3,145,453.49 -789,236.29
provision for asset impairment)
Government subsidies included in current profits
and losses (except those that are closely related
to the normal business of the Company, conform
32,905,181.89 33,217,045.91 16,456,682.22
to national policies and regulations, are enjoyed
according to certain standards and have a lasting
impact on the Company's profits and losses)
Profits and losses due to fair value changes
arising from the financial assets and liabilities
held by the non-financial business, as well as the
profits and losses arising from the disposal of -1,302,568.51 90,812,862.06 133,466,036.23
financial assets and liabilities, except for the
effective hedging business related to the normal
business of the Company
Reversal of provision for impairment of accounts
receivable that has been separately tested for 120,596.48
impairment
One-time share-based payment due to
cancellation or modification of the stock -28,092,840.35
incentive plan
Including the
extra deductions
Other non-operating income and expenses other
21,796,444.13 373,250.06 -1,787,714.37 for input tax in
than those mentioned above
other earnings
reports
Other profits and losses that conform to the Including the
1,477,128.99 270,112.67 9,914,763.48
definition of non-recurring profit and loss financing income
Minus: amount affected by income tax 11,184,636.52 22,265,407.68 23,726,354.32
Amount affected by minority shareholders'
604,156.43 430,808.43 608,113.65
equity (after tax)
Total 3,594,786.36 98,952,197.58 132,926,063.30 --
Details of other items of profits and losses that conform to the definition of non-recurring profit and loss:
□ Applicable Not applicable
None.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1
on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit and
Loss as recurring profit and loss items
□ Applicable Not applicable
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There is no such situation of defining the non-recurring profit and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-
recurring Profit and Loss as recurring profit and loss items in the Company
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Section III Management Discussion and Analysis
I. Industry situation of the Company during the Reporting Period
1. Basic situation of the industry
Intelligent controllers are high-tech products that integrate the automatic control technology, computer
technology, sensor technology, micro-electronic and power electronic technology. They play the role of "nerve
center" and "brain" in electronic products just like human nerves system. Intelligent controllers can intelligently
drive and control the objects being controlled by collecting, processing and analyzing information and
instructions, so as to complete various tasks. The wave of intelligent substitution has revolutionized the way we
live and work. As one of the core components of intelligence, the intelligent controller has a wide range of
applications, including household appliances, smart home, smart buildings, electric tools, industrial automation,
automotive electronics, new energy and medical equipment.
With the continuous integration and development of new technologies such as the artificial intelligence,
robotics, Internet of Things and cloud computing, the application of intelligent controllers has been further
expanded. For example, intelligent controllers are now able to predict and adapt to user behavior and needs in
combination with AI technology to provide more personalized services. In the field of industrial automation,
intelligent controllers are capable of performing more complex tasks in combination with robotics to improve
the production efficiency and safety and reduce costs. It shall be noted that humanoid robots are also beginning
to walk into real life. From family assistants to operators in high-risk work environments, humanoid robots are
capable of performing complex human tasks in a variety of environments, and intelligent controllers play a vital
role in this.
Advances in technology not only accelerate the iteration of the products, but also indicate broader
development prospects of the intelligent controller industry. We are now standing on the threshold of an
intelligent technological revolution, and the convergence of intelligent controllers with AI and robotics is
reshaping the way we live and work, opening up a world of possibilities. In the future, with continuous
technological progress and innovation, we can expect more new products, new formats and new models, which
will further promote the prosperity of the intelligent controller industry.
2. Position in industry
As a leader in the field of intelligent control, we are not only a pioneer in providing intelligent control
solutions worldwide, but also a synonym for innovation. Our success is based on adherence to the values of
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"Agile Innovation Partner" and our relentless drive for technological innovation. We have established the
integrated technical system of "four electrics and one network" (electronic control, motor, battery, power source
and IoT platform), providing customized intelligent control solutions for four industries including the home
appliances, tools, new energy and industry.
Our core competence lies in the "platform-based technology innovation capability, partner-like customer
service capability and systematic rapid response capability". The combination of the three capabilities not only
drives our continuous improvement, but also helps us build close relationships with many industry-leading
customers. Today, as a leader in providing intelligent control solutions in the field of home appliances and tools,
we lead innovation in the field of new energy and industry. Our leadership is not only reflected in market share
and technological innovation, but more importantly, we have become a key force driving the entire industry
forward.
II. Main business engaged by the Company during the Reporting Period
During the Reporting Period, we focused on the R&D, production and sales of intelligent control system
solutions. Based on the core technology system of "four electrics and one network" (electronic control, motor,
battery, power source and IoT platform), our solutions are widely used in four major industries including the
home appliances, tools, new energy and industry, providing customers around the world with innovative,
efficient and reliable customized services. We keep strengthening us in technological innovation and improving
our keen insight and rapid response to market needs. B y continuously optimizing and upgrading our technology
platform, we are committed to providing our customers with more intelligent and personalized control solutions
so as to help them achieve technological breakthroughs and business growth in their respective fields.
Intelligent Control Industry
Solutions Applications Home appliances Power Tools New energy
Automation
in "Four Industries"
Core technology of Electronic control Motor technology Battery technology Power technology
"Four Electrics and
One Network"
IoT platform
1. The Company's core technology: "electronic control, motor, battery, power source and IoT
platform".
1.1 Electronic control technology
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The electrical control technology achieves intelligent control by taking the microcomputer as the core,
involving many technologies such as the sensor, power electronics, signal processing, communication,
interaction, power and energy conversion, electromagnetic compatibility, etc. The Company has profound
accumulation in the key fields such as automatic control, human-computer interaction, embedded computing,
machine vision, robotics, intelligent sensor and motion control.
We have established hundreds of electronic control technology platforms, which can meet the needs of
product diversification in the field of home appliances, tools, new energy and industry, and our electronic
control technology is widely used in products such as the controllers, electromechanical integration equipment,
power source and smart battery.
1.2 Motor technology
Motor technology plays a key role in converting electric energy into kinetic energy in the intelligent
control system. The Company has established complete technical capability from motor design and simulation,
testing and verification to scale manufacturing based on continuous innovation in high efficiency, low noise,
high precision and high stability of motors, forming dozens of advanced motor product platforms such as
brushless DC motor (BLDC), coreless motor, stepper motor and servo motor.
The Company's motor technology has been successfully applied in many fields, such as electric tools,
automation equipment, intelligent electrical apparatus, new energy vehicles and robots. Our motor technology
takes the lead in the field of electric tools and automation equipment, and in terms of the application of motor
technology in new energy vehicles, robots and medical care, we have achieved remarkable results, which has
been widely recognized in the market.
1.3 Battery technology
Battery technology is the technology where energy is stored and managed. Its core technologies include
battery material application, cell design and manufacturing, and battery system integration. Battery material
application technologies include positive and negative electrode materials, electrolytes, diaphragms, and other
related application technologies; cell design and manufacturing include electrochemical architecture design and
manufacturing process technologies such as coating, laminating/winding, and forming; battery system
integration consists of a series of technologies such as battery assembly, thermal management, collision and
leakage safety, accurate measurement of voltage/current/temperature signals, battery state estimation and cell
equalization. The technology spans multiple fields of material science, electrochemistry, electronics, and control
engineering. After years of accumulation, the Company has formed a complete design, development
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customization, and production technology capability from cell technology (CELL) and battery management
technology (BMS) to battery pack (PACK) system.
In terms of battery management system (BMS), we have achieved industry-leading accuracy and reliability.
With advanced algorithms and control strategies, our BMS can monitor and manage the battery status in real
time, ensuring optimal performance and safe operation of the battery system. Technological innovations in this
area have made us a market leader when providing efficient and safe battery solutions for energy storage
systems, power backup, power exchange and portable devices.
1.4 Power source technology
Power source technology, as the key to efficient conversion of electric energy, covers analog power,
switching power and digital power. We have a wide range of technology platforms in this field and focus on
providing efficient and reliable power source solutions.
With innovative energy management strategies and high-precision power quality control technology, we
have optimized the charging and discharging process of the power conversion system (PCS) and improved the
overall efficiency and life of the system. Our PCS technology supports a wide range of battery types and
configurations and meets the needs of energy storage applications varying in scale. In terms of photovoltaic
inverter technology, we have significantly improved the energy conversion efficiency of solar panels with
advanced control algorithm and efficient electrical energy conversion circuit design, supporting a variety of
communication protocols.
In the field of high power DC charging piles, we have achieved fast and safe charging of electric vehicles
by using efficient power electronic conversion technique and intelligent charging control algorithm. Our DC
charging piles are of high power density and excellent heat dissipation performance, which ensures the
efficiency and stability of the charging process.
1.5 IoT platform
The IoT platform, as the key to connecting the perception layer, network layer and application layer,
enables us to achieve intelligent connection of devices and efficient management of data. With complete
technical capabilities from modules and smart terminals to applications (APP) and Platform as a Service (PaaS),
our IoT platform can provide integrated solutions for multiple industries.
Especially in the cloud platform for household energy management, we have made remarkable
achievements. By intelligently analyzing and processing the household energy consumption data, the platform
helps users to optimize energy consumption and achieve the conservation and efficient use of energy. By
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seamlessly integrating with smart home devices, the platform provides users with a comprehensive and easy-to-
use energy management and control solution.
In the development of photovoltaic energy storage and charging cloud platform, we have achieved the
intelligent collaboration of solar power generation, energy storage and charging facilities by using advanced
Internet of Things. The platform not only improves the energy efficiency, but also provides users with
convenient energy management and use experience, promoting the wide application of renewable energy.
In addition, our digital energy management platform provides comprehensive energy monitoring, analysis
and optimization for the industrial, commercial and public facilities with big data and artificial intelligence
technology. The platform helps users to reduce energy consumption and improve the sustainability of energy
use, supporting the enterprises and society in achieving green development goals.
2. The Company's main products: customized system solutions for four major industries, i.e., home
appliances, tools, new energy and industry.
The Company's products are mainly classified into four categories: controller, motor, power source and
battery. By comprehensively utilizing the "four electrics and one network" core technology, we provide
customized products and integrated solutions to satisfy the demands of customers from the four downstream
industries including home appliances, tools, new energy and industry.
2.1 Home appliances
The Company provides a range of customized products and services, from product concept, design, and
development to manufacturing and delivery for branded customers in the home appliance industry. The products
are mainly involved in controller and motor categories, including home appliance master control, power control,
motor drive and control, display control, etc. The products are mainly used in various fields, such as HVAC,
kitchen appliances, cleaning appliances, health care, lighting, and smart home.
Application
scenarios
Products
2.2 Power Tools
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The tool industry mainly includes power, garden, and other professional tools. The Company provides a
range of customized products and services, from product concept, design and development to manufacturing
and delivery for branded customers in the tools industry. The Company's products mainly covers the four
categories of components, namely controller, motor, battery and power source, as well as some intelligent
products.
Application
scenarios
Products
2.3 New energy
In the field of new energy, the Company has formed a complete product matrix covering core components,
complete units and system solutions. In terms of core components, the Company has completed the layout of
"1C1C3S" core products, including the charging module, cell, BMS, PCS and EMS. For the complete unit, the
Company has developed a full range of products such as AC and DC charging piles, household energy storage,
industrial and commercial energy storage, communication backup power and portable energy storage devices.
At the system solution level, the Company combines the core technical capabilities of the complete unit and
cloud platform and develops the complete solutions for scenarios such as PV, energy storage and charging, zero-
carbon parks and household green energy.
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Application
Products scenarios
2.4 Industry Automation
In the industrial control industry, our business covers R&D, production and sales of specialized industrial
intelligent control products, mainly involving stepping, servo drive and motion control products. The Company
focuses on downstream automation equipment customers and provides them with controllers, drives and motors.
Downstream applications involve 3C electronics, robotics, medical equipment, semiconductor equipment, PV
and lithium battery. We committed to helping automation equipment manufacturers improve design
performance, reduce manufacturing costs, and speed up the development of new equipment.
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Application
scenarios
Products
III. Analysis of core competitiveness
1. Platform-based technology innovation capability
The Company takes technology as the gene of enterprise development and considers innovation as the core
competence of the Company. The Company has the industry-leading platform technology innovation capability,
forming a complete technology platform covering various core technology areas of intelligent control
integration solutions.
The Company has the ability of deep understanding of various control mechanisms, independent
implementation, and continuous innovation, covering the core technologies of intelligent control algorithm,
motor control, lithium battery, sodium battery, sensing, human-machine interaction, image recognition, digital
power supply, embedded software, temperature control, heating, and cooling, etc.
In addition, the Company has a rich product line that forms many product platforms. Each core product
platform has been verified in mass production to ensure quality and reliability. We can quickly provide
customers with high-quality, differentiated custom solutions to meet their needs. In addition, the Company has
the industry's unique "controller + motor + battery + power supply" total solution capability, with the ability to
continuously develop innovative solutions in new categories, which can help customers innovate in the
competition to win.
In addition, the Company is able to provide the "controller + motor + battery + power + cloud platform"
integrated solution in the industry, and continuously develop innovative new category solutions, which can help
customers in the competitive innovation to win.
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2. Partnership customer service capability
The Company values long-term development, takes value co-creation and value win-win as the
development concept, and develops long-term partnership with customers. Supported by platform-based
technology innovation capability, the Company continues to gain insight into customer needs, creates in-depth
co-creations with customers, establishes organizational customer relationships, and builds partner-based
customer service capabilities.
Based on multi-region layout, the Company has established international production bases mainly covering
Pearl River Delta, Yangtze River Delta, Southeast Asia, North America, and Europe. It also establishes
international market platforms to improve its ability to serve nearby through management capabilities, resource
allocation and other aspects. A number of overseas offices have been set up for close cooperation with
customers. The Company has established close partnerships with excellent customers at home and abroad in
various business areas. Based on long-term cooperation and mutual development, we have formed a good image
and brand reputation in the industry, widely recognized and generally praised by our customers.
3. Systematic rapid response capability
As intelligent technology evolves and uncertainty increases, the pace of global innovation iteration is
accelerating, and companies increasingly need to be more agile in their operations to serve their customers.
Based on a deep understanding of the intelligent control business, the Company has created a strong platform
system from the implementation of IPD ideas in the R&D and design process, the core customer ISC changes in
the supply chain system, the laboratory and quality assurance system, and the intelligent manufacturing
platform system to build a customer-centric process-oriented organization, internalizing the Company's superior
capabilities into agile operational capabilities, and the agile system will further strengthen the Company's
advantages, and the two form a mutually reinforcing and virtuous development, thus achieving sustainable,
high-quality growth.
IV. Analysis of main business
1. Overview
Against the backdrop of China's economy shifting from high-speed growth to high-quality development,
the Company has seized the opportunity of technological upgrading to develop high-quality business,
demonstrating the operational resilience of enterprises in different economic environments. The Company has
always insisted on helping the world with intelligence and decarbonizing with smarter technology and greener
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energy.
During the reporting period, the Company built up its comprehensive competitiveness in various aspects
through continuous product innovation, enhancing the advantages of platform enterprises and accelerating
internationalization, steadily improved the market share of high-value products in the primary business (home
appliances and tools), increased the share of the head customers, and realized the double growth in the number
of hundred million customers and ten million customers as well as the revenue; at the same time, it grasped the
opportunity of accelerated conversion of the old and new kinetic energies under the background of dual-carbon,
and gradually At the same time, seizing the opportunity of accelerated transformation of old and new kinetic
energy under the background of double carbon, we will successively launch a series of self-developed core
components and machine products to improve the capability of system solutions; accelerate the development of
new energy storage, charging business, mobile robots and other businesses, and keep investing in cutting-edge
technology to lead the wave of innovation in the intelligent control industry. In 2023, with the concerted efforts
of all employees, the Company realized operating revenue of RMB 8.992 billion, a year-on-year increase of
1.32%, net profit attributable to shareholders of listed companies of RMB 515 million, a year-on-year decrease
of 11.58%, and net profit attributable to shareholders of listed companies after deduction of non-cash dividends
of RMB 512 million, a year-on-year increase of 5.76%.
Annual operating results and core operating metrics for 2023 are set forth below:
(i) Breaking the waves and oars to achieve 11 consecutive years of revenue growth.
1. Sound operation and healthy development, focusing on long-term value creation
Despite facing multiple challenges, such as demand and industry inventory, the Company still achieved 11
consecutive years of revenue growth from RMB 1 billion in 2013 to nearly RMB 9 billion in 2023, relying on
its technology platform and product platform advantages. During the reporting period, the Company increased
investment in vital new projects, actively explored the international market, and continued to gain customer
recognition steadily; home appliances, tools, new energy and industrial segments have achieved modest growth.
In 2023, the Company's number of head customers and revenue continued to double growth; the number of head
customers increased to 115 and realized revenue accounted for 86% of the Company's total revenue, the
Company in accordance with the strategy of the orderly expansion of the market segments, to maintain the
leading edge. At the same time, it strengthens its market insight, product definition and development
capabilities. It increases its investment in innovative businesses to contribute new kinetic energy to corporate
development and create long-term corporate value with a sustainable business philosophy.
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2. Intelligent society, the future is here
As AI, IOT, AIGC and other technologies continue to advance, they will empower the innovative
development of various industries, integrate and optimize multiple application scenarios, and continue to
change the way humans live and work. As a more advanced form of society following the industrial and
information societies, the intelligent society will usher in broader and more profound changes. It is predicted
that the global AI market scale will exceed RMB 20 trillion in 2030, and the scale of China's core AI industry
will exceed RMB 4 trillion in 2030. There is still significant potential and space for development. The Company
actively embraces the development opportunities in the fields of smart home, smart manufacturing, smart
driving, smart kitchen, etc., and realizes the intelligent landing of more scenarios through intelligent upgrading,
AI algorithms, human-computer interaction, edge AI, and robot products.
3. Operation of each business segment:
(1) Tools segment: sales revenue of RMB 3.241 billion in 2023, up 0.05% year-on-year. During the
reporting period, the industry de-stocked, the growth rate slowed down, and demand gradually recovered in the
fourth quarter. The Company is working with its head customers to drive product innovation, electrification, and
cordless penetration. A steady increase in share and leading industry position.
The share of downstream customers in the tool segment is highly concentrated and mainly overseas. As a
core Chinese supplier in the tool industry, the Company provides customers with one-stop solutions, including
controllers, motors, battery packs and complete machines, and the Company continues to promote innovations in
the industry, such as innovations in super-charging control technology in the field of power tools, intelligent
control system for riding lawnmowers in the field of OPE, and four-wheel-drive mowing robots based on
binocular stereo vision, and other innovations; meanwhile, it expands the application opportunities of products in
the scenes surrounding the use of tools. Through years of implementation and promotion of the
internationalization strategy, the bases in Vietnam and India have achieved large-scale mass production and stable
operation, and the bases in Romania and Mexico have achieved mass production, making a significant
breakthrough in overseas markets. During the reporting period, we built up our ability to provide global supply to
head customers by taking advantage of our leading position in "going to sea" and introducing new head customers
to our new bases.
(2) Home appliance segment: sales revenue of RMB 3.166 billion in 2023, up 2.41% year-on-year. The
Company focuses on the development of advantageous categories in the field of home appliances. It continues to
deepen its efforts in the fields of large white goods (ice-washing and air-conditioning), kitchen and bathroom
appliances, and innovative small home appliances, as well as expanding the market applications of cleaning
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appliances, temperature control, and commercial scenarios. During the reporting period, the Company actively
seized the technological upgrading and market opportunities of its core categories to realize the rapid growth of its
core categories, such as inverter air conditioners and cleaning appliances. In terms of innovation, we have realized
technological innovations from heating temperature control to air conditioning, fresh air and 3-in-1 temperature
control, heat pumps, etc., and have broadened our business applications from commercial air conditioning to new
air conditioners, intelligent building control, etc., so as to achieve an increase in customer share.
During the reporting period, the Company actively invested in cutting-edge technologies in the field of AI+
home appliances, such as Matter intelligent gateway control system, whole-house intelligent protocol-based
gateway, human-computer interaction control system and intelligent home education robots, and co-created smart
home scenarios and AI+ product landing with customers.
(3) New energy segment: as the Company's growth business, it will realize revenue of RMB 2.14 billion in
2023, up 5.13% year-on-year, higher than the Company's overall growth rate. With the core technology of "one
core, one cloud and 3S" (battery core, cloud platform, BMS, PCS and EMS), the Company provides customers
with two categories of products: controllers and components and complete machines and systems, which are
mainly used in two major fields: energy storage and new energy vehicles. In 2023, in the face of inventory and
competitive pressure in the energy storage market, the Company actively responded by seizing the breakthrough
of new customers, technological innovation, and perfecting the whole machine and solution capabilities to meet
the scene expansion opportunities in the new energy industry due to the decline in battery costs, and profoundly
applying the advantages of the control technology to the power generation side and the user side. During the
reporting period, revenue from controllers and component products amounted to RMB 804 million, representing a
year-on-year increase of 10.17%, while revenue from complete machines and systems amounted to RMB 1.336
billion, representing a year-on-year increase of 2.31%.
(4) Industrial segment: sales revenue of RMB 251 million in 2023, an increase of 1.22% year-on-year, of
which the servo drive and motor system business increased by 26.54% year-on-year, and the servo application of
the market expansion process accelerated. The Company mainly provides downstream automation equipment
customers with PLC, motion control cards, stepper/servo drives, motors and other core components, as well as
motion control solutions based on industry process support, widely used in 3C electronics, industrial robots,
medical equipment, photovoltaic equipment, semiconductor equipment, dispensing, engraving, packaging
machinery and other industries.
Industrial control industry: automation market towards maturity, the market from high-speed growth to
stability. Domestic industrial control industry in the medium and long term will benefit from "industrial upgrading
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+ machine replacement," domestic substitution, digitalization, intelligence, and low-carbon development. In
recent years, the domestic industry has controlled customers from the efficiency of the concern to the security of
supply. Domestic enterprises have the security of supply, product cost-effectiveness, fast responsive engineers and
other advantages. In the industry chain security high-end manufacturing, there are more significant opportunities.
During the reporting period, through the accumulation of processes, product design, continuous improvement
of product reliability, as well as the ability to respond quickly based on user needs and feedback, the Company has
continued to iterate to meet the needs of differentiated applications while improving performance, to help
manufacturers of automation equipment to improve the performance of equipment design, reduce the cost of
equipment manufacturing, and speed up the development of new equipment, so as to accelerate the degree of
automation of the manufacturing industry to improve the degree, and is committed to We are committed to
becoming the "leader in efficient and easy-to-use stepper and servo drives" in the industrial control industry.
During the reporting period, by focusing on key industries and key customers, the Company's revenue in 3C,
photovoltaic, dispensing and other industries achieved substantial growth, the servo system business benefited
from the transformation and upgrading of the manufacturing industry and the acceleration of the pace of domestic
substitution, revenues to achieve rapid year-on-year growth.
Industrial robots and humanoid robot industry: China, as a large manufacturing country, has an
increasing demand for industrial robots. According to Rui industrial data, 2023 industrial robot sales grew slightly,
a slight increase of 0.4% year-on-year. Downstream industry demand differentiation is significant, and the
photovoltaic industry is the industry's growth engine. Cobots (collaborative robots) have the highest year-on-year
growth rate. The Company has realized the product application of servo drive and hollow cup motor in the field of
industrial robots; according to McKinsey's prediction, in the long run, the global market space of humanoid robots
can reach the level of trillions. With tremendous technological advances in general artificial intelligence,
perception and power systems, the pace of innovation in the humanoid robotics industry has accelerated, with a
number of companies launching humanoid robots one after another. In January 2023, the Ministry of Industry and
Information Technology (MIIT) and 16 other departments issued the "Robot+" Application Action
Implementation Plan. In November 2023, the Ministry of Industry and Information Technology (MIIT) issued the
Guidelines for the Innovative Development of Humanoid Robots. Humanoid robots have already become an
important industry at the national level. The Company has increased its investment in related fields to enhance its
capabilities in the areas of control, motors, modules, and system solutions. The Company has increased its
investment in associated fields, enhanced its capabilities in control, motors, modules and system solutions, and
pushed forward the technological innovation of related products and industrial applications.
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(ii) Increase in the proportion of innovative products, cost reduction and efficiency gains, and
improvement in gross margins and profitability
In 2023, the Company achieved a consolidated gross margin of 22.31%, an increase of 2.17% year-on-year.
During the reporting period, the gross profit margins of home appliances, tools, new energy, and industrial
industries all increased year-on-year. On the one hand, through continuous innovation in the application of
various downstream industries, we increased investment in forward-looking technologies, launched many
independently controllable new products represented by DC charging piles and industrial/commercial storage
all-in-one machines, and gave full play to the advantages of our technological platforms to increase the
reusability and enhance the market share; on the other hand, through cost-cutting and efficiency-enhancement,
lean manufacturing, and digitalization, we achieved a significant year-on-year decrease in BOM costs and
manufacturing fee rates. On the other hand, through cost reduction, efficiency enhancement, lean manufacturing
and digital transformation, we have achieved a year-on-year reduction in BOM cost and manufacturing fee rate
and significantly improved overall operational efficiency.
(iii) Insisting on a high proportion of R&D investment, building platform-based competitive
advantages and tapping the blue ocean market with innovation drive
We adhere to the concept of creating value for customers and society, always take "technological
innovation" as the engine of the Company, and continue to deepen the technological leadership and build new
kinetic energy for enterprise development. In 2023, the Company will continue to promote and deepen the
accumulation and application of "four electrics and one network" technologies in five major industries,
accelerate the integration and application of new technologies such as AI, IoT and 5G, and speed up the
investment in R&D of new businesses and new technologies. The Company has continuously maintained a high
proportion of R&D investment, and the ratio of R&D investment to operating income has been around 7% in
the past 11 years, establishing a foundation for innovation-driven business growth. During the reporting period,
the Company's total R&D investment amounted to RMB 834 million, an increase of 15.94% year-on-year,
accounting for 9.28% of the operating income, and there were 2,004 R&D and technical service personnel.
R&D investment in the main application directions:
① Platform empowerment: During the reporting period, through the establishment of device libraries
and basic BOMs, the Company was able to connect the customer's demand, purchasing side and R&D side, and
realize the preferential selection of devices and the improvement of R&D efficiency. ② Introduction and
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cultivation of high-tech talents: in the new energy industry and commerce storage, optical storage, motor and
other new business areas, increase the investment in talents and market expansion. ③ Enhancement of
laboratory capacity: On the basis of the existing UL-WTDP, TUV Rheinland CTF, CNAS, SGS CTF, TUV
Süd CTF laboratories, the Company has added an air conditioning enthalpy laboratory and a working condition
laboratory better to meet the testing needs of air conditioning customers.
The Company creates a cultural atmosphere of innovation internally, increases the protection of
independently controllable products and independent intellectual property rights externally, takes technology
leadership, achievement protection and benefit enhancement as the goal, manages the patent assets effectively,
guarantees the maximization of the value of intellectual property rights, and promotes the industrial
transformation of innovation achievements. At the end of the reporting period, the Company and its subsidiaries
formed the protection of innovations through intellectual property rights and gradually increased the
contribution of patent beneficiation. The Company has applied for 3,228 patents, including 1,138 invention
patents, 1,747 utility models, 344 designs, 42 foreign patents and 57 PCT patents; the Company and its
subsidiaries have applied for a total of 161 software copyrights and 407 trademark applications.
(iv) A Forward-looking internationalization layout builds up barriers to going overseas and opens up
room for growth.
Through years of internationalization strategy, the Company has achieved large-scale mass production and
stable operation in Vietnam and India bases, with excellent profitability. The Romanian and Mexican bases
have realized mass production and made significant breakthroughs in overseas markets.
(v) Strengthening risk management and control, improving capital turnover efficiency, and
safeguarding the healthy and sustainable development of the Company's operations
During the reporting period, the Company strengthened risk management and control, increased the
payback efforts, reduced the expenditure on provisioning, improved the efficiency of capital turnover, and
realized net cash flow from operating activities of RMB 1.466 billion, an increase of 198.53% year-on-year,
which guaranteed the Company's operational health and sustainable development.
(vi) Other important matters
During the reporting period, the Company actively observed the needs of its customers in terms of
sustainable development, responded to its customers through the establishment of an energy management team,
the layout of the "photovoltaic power generation + energy storage" green park construction, the installation of
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energy-saving equipment, the shaping of green culture, and promoted the process of the Company's low-carbon
consumption reduction, and continuously strengthened the in-depth integration of sustainable development and
business operations, achieving steady growth in both financial operations and ESG (environmental, social, and
corporate governance). The Company has achieved steady growth in both financial operations and ESG
(environmental, social and corporate governance).
2. Revenue and Cost
(1) Composition of operating income
Unit: RMB
2023 2022 YoY
Proportion in Proportion in increase or
Amount Amount decrease
operating income operating income
Total operating income 8,992,342,169.08 100% 8,875,099,137.06 100% 1.32%
By industry
Intelligent control
8,992,342,169.08 100.00% 8,875,099,137.06 100.00% 1.32%
electronics industry
By product
Tools 3,241,499,560.23 36.05% 3,240,010,210.60 36.51% 0.05%
Home appliances 3,166,494,205.15 35.21% 3,091,915,524.39 34.84% 2.41%
New energy 2,140,208,255.71 23.80% 2,035,748,139.21 22.94% 5.13%
Industry 251,380,930.79 2.80% 248,342,753.93 2.80% 1.22%
Intelligent solutions and
192,759,217.20 2.14% 259,082,508.93 2.92% -25.60%
others
By region
Domestic 3,615,419,893.91 40.21% 3,524,383,375.76 39.71% 2.58%
Export 5,376,922,275.17 59.79% 5,350,715,761.30 60.29% 0.49%
Distribution model
Basing production on
8,992,342,169.08 100.00% 8,875,099,137.06 100.00% 1.32%
sales prospects
(2) The situation of industries, products, regions or sales models accounting for more than 10% of the Company's
operating income or operating profit
Applicable □ Not applicable
Unit: RMB
Increase or Increase or Increase or
decrease of decrease of decrease of
Gross profit operating operating costs gross profit rate
Operating income Less: operating cost
rate income over the over the same over the same
same period of period of last period of last
last year year year
By industry
Intelligent
8,992,342,169.08 6,986,324,444.52 22.31% 1.32% -1.42% 2.17%
control
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electronics
industry
By product
Tools 3,241,499,560.23 2,470,602,168.11 23.78% 0.05% -4.05% 3.25%
Home
3,166,494,205.15 2,467,953,129.60 22.06% 2.41% -0.70% 2.45%
appliances
New
2,140,208,255.71 1,725,599,932.05 19.37% 5.13% 4.04% 0.85%
energy
Industry 251,380,930.79 182,028,366.30 27.59% 1.22% 0.75% 0.34%
By region
Domestic 3,615,419,893.91 2,917,987,490.65 19.29% 2.58% 1.56% 0.81%
Export 5,376,922,275.17 4,068,336,953.87 24.34% 0.49% -3.46% 3.10%
Distribution model
Intelligent
control
8,992,342,169.08 6,986,324,444.52 22.31% 1.32% -1.42% 2.17%
electronics
industry
(3) Whether the Company's revenue from physical sales is greater than that from services
Yes □ No
Industry classification Items Unit 2023 2022 YoY increase or decrease
Sales pcs 143,304,884 145,345,424 -1.40%
Intelligent control electronics
Production output pcs 138,284,579 140,109,731 -1.30%
industry
Inventory pcs 6,303,828 11,324,133 -44.33%
Reasons for year-on-year changes of relevant data exceeding 30%
Applicable □ Not applicable
The inventory decreased by 44.33% on a year-on-year basis during the Reporting Period, mainly due to the
increase in unit value of the products and decrease in production and sales volume.
When the unit selling price P >RMB 200, the sales volume is 6,611,300 PCS, and the sales revenue is RMB
3.455 billion;
When the unit selling price RMB 100≤P< RMB 200, the sales volume is 15,919,300 PCS, and the sales revenue
is RMB 2.253 billion;
When the unit selling price RMB 50≤P< RMB 100, the sales volume is 18,357,900 PCS, and the sales revenue
is RMB 1.308 billion;
When the unit selling price P< RMB 50, the sales volume is 102,416,400 PCS, and the sales revenue is RMB
1.976 billion;
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(4) Performance of major sales contracts and major procurement contracts signed by the Company as of
the Reporting Period
□ Applicable Not applicable
(5) Composition of operating costs
Industry and product classification
Unit: RMB
2023 2022 YoY
Industry
Items Proportion to Proportion to increase or
classification Amount Amount
operating costs operating costs decrease
Intelligent control Operating
6,986,324,444.52 100.00% 7,087,226,986.88 100.00% -1.42%
electronics industry costs
Unit: RMB
2023 2022 YoY
Product category Items Proportion to Proportion to increase or
Amount Amount decrease
operating costs operating costs
Tools Operating costs 2,470,602,168.11 35.36% 2,574,926,005.78 36.33% -4.05%
Home appliances Operating costs 2,467,953,129.60 35.33% 2,485,460,503.68 35.07% -0.70%
New energy Operating costs 1,725,599,932.05 24.70% 1,658,664,841.64 23.40% 4.04%
Industry Operating costs 182,028,366.30 2.61% 180,681,718.87 2.55% 0.75%
Intelligent solutions
Operating costs 140,140,848.46 2.00% 187,493,916.92 2.65% -25.26%
and others
(6) Whether the consolidation scope has changed during the Reporting Period
Yes □ No
During the Reporting Period, 3 new sub-subsidiaries were incorporated into the scope of consolidation, and one
sub-subsidiary was liquidated and cancelled.
(7) Major changes or adjustments of the Company's business, products or services during the Reporting Period
□ Applicable Not applicable
(8) Main clients and suppliers
Information on main clients of the Company
Total sales of the top five clients (RMB) 3,358,746,297.27
Proportion of total sales of the top five clients in the annual sales 37.35%
Proportion of related party sales in the total sales of the top five clients in the annual sales 0.00%
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Information of the Company's top five clients
No. Client name Sales (RMB) Proportion to the annual sales
1 No. 1 2,366,554,935.94 26.32%
2 No. 2 305,019,027.88 3.39%
3 No. 3 279,955,902.27 3.11%
4 No. 4 214,877,567.33 2.39%
5 No. 5 192,338,863.85 2.14%
Total -- 3,358,746,297.27 37.35%
Other information on main clients
□ Applicable Not applicable
Information on main suppliers of the Company
Total purchase amount of the top five suppliers (RMB) 1,803,075,727.25
Proportion of total purchase amount of the top five suppliers in
32.390%
the annual purchase amount
Proportion of related party purchase amount in the total purchase
0.00%
amount of the top five suppliers in the annual purchase amount
Information on top five suppliers of the Company
No. Supplier name Purchase amount (RMB) Proportion to the annual purchase amount
1 No. 1 1,131,337,074.37 20.32%
2 No. 2 298,942,640.13 5.37%
3 No. 3 205,720,903.53 3.70%
4 No. 4 98,039,933.80 1.76%
5 No. 5 69,035,175.42 1.24%
Total -- 1,803,075,727.25 32.39%
Other information on main suppliers
□ Applicable Not applicable
3. Expenses
Unit: RMB
YoY increase
2023 2022 Explanation of major changes
or decrease
The expenses during the Reporting Period is RMB 62.16
million more than that over the same period last year, with an
Selling increase of 23.89%.It is due to the increase in the employee
322,340,584.49 260,181,170.88 23.89%
expenses benefits for personnel engaged in new businesses, as well as
the increase in travel expenses and exhibition expenses
incurred for the development of overseas markets.
The expenses during the Reporting Period is RMB 68.86
million more than that over the same period last year, with an
increase of 18.64%.It is due to the increase in employee
Overheads 438,361,342.66 369,502,745.36 18.64% benefits as a result of the increase in staffing for the
construction of overseas bases, and the increase in depreciation
and amortization corresponding to the increase in investment
in long-term assets at overseas bases.
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
The expenses during the Reporting Period is RMB 71.46
million more than that over the same period last year, with an
Finance increase of 58.02%.It is due to decrease in exchange gain
-51,708,683.93 -123,173,262.90 58.02%
expenses compared with the same period last year due to the increase in
the exchange rate of the USD against the RMB during the
Reporting Period.
The expenses during the Reporting Period is RMB 97.62
million more than that over the same period last year, with an
R&D increase of 16.48%.It is due to the increase in the investment in
689,969,610.98 592,346,136.09 16.48%
expenses strategic key projects such as the inverter control system,
power conversion system, charging pile, and industrial and
commercial BMS.
4. R&D investment
Applicable □ Not applicable
Description of Impact on the
main R&D Project purpose Project progress Goals to be achieved Company's future
projects development
The technology has
been developed and
The energy efficiency, Expand the
This project focuses on the proved on many
vibration, noise reduction Company's
Medium and high difficulties in high power, high products, and has been
and product reliability are advantages in the
power frequency efficiency and low noise successively mass-
at the industry-leading field of the high-
conversion frequency conversion technique, produced on many
level, achieving large- end home and
control enriches the serialized product products, such as high-
scale industrial commercial
technology platforms and further expands the power air conditioners,
application of the appliances
market share. refrigerators, washing
technology. control.
machines, and range
hoods.
The fourth generation of
technology platform has
This project covers dozens of key been completed, and Achieve the leading
technologies such as robot dozens of technologies position of the mobile
mapping, positioning, planning, have been patented, and robot chassis technology Enhance the
Mobile robot navigation, movement, obstacle the research and and mass production and Company's core
chassis avoidance, multisensor fusion, development continues; application of the competitiveness
technology machine vision and AI, so as to the technology has been technology and product in various mobile
achieve fast development and applied in dozens of platform in scenarios such robot solutions.
multi-scene application of mobile projects and takes the as home, garden and
robots. lead in the field of industry.
borderless robotic lawn
mower.
The hall-free detection
and estimation algorithm
The key technologies is at the industry-leading
The Project focuses on the hall-
have been tested and level. The solution cost
free motor control technology and
verified, and research and reliability have been Consolidate the
Hall-free motor electromechanical integration
and development improved by more than Company's
drive and technology to achieve high-
continues; the ultra- 30%, and the technological and
electromechanical reliability, low-cost and small-
high-speed motor and electromechanical market leadership
integration volume tool controller solutions
the hall-free motor drive integration design in the field of
technology and expand the Company's
technology have been performance and cost tools.
technological superiority in tool
applied in tool have been improved by
products.
scenarios. more than 30%.Further
improve the advantages of
the tool controllers, such
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
as the high reliability, low
cost, small volume and
light weight.
Further improve
the Company's
This project aims to improve the competitiveness
The key technologies
performance of the permanent in the field of
have been tested and The new permanent
magnet motor in terms of noise high-performance
New permanent verified, and will be magnet motor is at the
and stationarity and minimize motors and
magnet motor mass produced and industry-leading level in
flux leakage, achieving the goal expand the
technology applied in the field of E- performance and is cost
of cost competitiveness among application
Blike and electric two- competitive.
the motors of the same market in fields
and three-wheelers.
performance. such as tools and
new energy
vehicles.
Breakthroughs have
This project has established a
been achieved in high-
large capacity and high energy
power intelligent Enrich the
density cell product platform at
lithium cell technology Company's cell
100Ah level by optimizing the
and multilayer stacked Its energy density, high and battery
Large capacity cell packaging method, increasing
energy storage battery and low temperature PACK product
iron lithium cell the cell size and capacity and
technology, and the discharge performance, line, and help the
and PACK reducing the cell redundant
research and and long cycle life are at Company expand
technology components, so as to effectively
development continues; the leading level in the its business in
platform expand the single cell capacity
the products have been industry. areas such as
and energy density, improve the
mass-produced and energy storage
PACK integration efficiency and
applied in the field of and light power.
reduce the comprehensive cost of
energy storage, UAV,
the battery system.
etc.
This project studies and solves Technological
the difficulties in using the new development and
sodium cathode material in the verification have been
New sodium-ion cell design, application and completed, and research
The energy density and
secondary cell manufacturing process, forming and development New technology
cost level are at the
technology the sodium-ion cell technology continues; the reserve
industry-leading level.
platform platform and product platform to technology can be mass-
provide new produce reserve for produced and applied in
further development of the new various business
energy business. scenarios.
This project aims at improving
the intelligence level and
reliability of the smart shared
battery swap system by deeply The smart shared battery Further improve
The technical
studying the key technologies of swap system is at the the Company's
development and
the system, including the system industry-leading level in technical solution
Smart shared verification of the
structure and design, BMS battery terms of intelligence level capability and
battery swap second generation of
management technology, and reliability, and a market share in
system products have been
intelligent charging management, large-scale industrial the battery
technology completed, and the
data transmission and processing, application of the swapping of two-
products have been
safety assurance, battery tracking technology has been and three-
delivered in bulk.
and cabinet fire protection, so as achieved. wheelers.
to provide convenient, efficient
and safe services for shared
travels.
Key technologies This project aims at improving The Company has Master the core Support the
such as the Company's technology and achieved technological technologies such as Company's new
automotive product level in the application of breakthroughs and automotive electronic business
electronic new energy vehicles by deeply product applications in controllers, motors, and development in
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
controllers, studying the automotive fields such as intelligent battery charging and swap the automotive
motors, and electronic controller and new car cabins, thermal equipment, form a mature field.
battery charging energy vehicle battery charging management, AC/DC product platform,
and swap and swap technology, exploring charging piles, and construct and improve
equipment the design principle and key motors, forming several relevant technology and
technology, developing the key mature product product test and
technology platform and product platforms and verification platforms and
platform and constructing the constructing relevant enhance the Company's
testing and verification platform. technology and product technical capability and
supporting test and quality assurance
verification platforms. capability in the field of
new energy vehicles.
A mass-produced
technology and product
platform has been
formed, and the
This project aims at improving research and
Support the
the power control, management, development continues;
Company's
testing and intelligence level by the development, The application in the
business
studying the digital architecture verification and conversion efficiency of
breakthroughs in
under different power topologies, productization of the large power supply
Digital power the field of high-
building relevant DSP processors 3KW and 5KW ranging from several
technology end digital power
and all-digital feedback bidirectional inverter kilowatts to tens of
platform and expand the
technology platform and technology platform kilowatts and in complex
Company's
mastering the core digital power have been completed; scenarios is at the
market in the
algorithm, forming the medium- the development, industry-leading level.
field of new
and high-power digital power verification and
energy.
technology and product platform. productization of the
special digital power
technology platform for
medical use have been
completed;
Improve the
This project studies the machine
Company's
vision and speech recognition The technology
product
algorithm to achieve intelligent platform is under
innovation
automatic identification and continuous The AI algorithm and
capability in
Embedded interactive operation for users, development, and performance are at the
artificial
artificial reduce the complexity of using several prototype industry-leading level, and
intelligence and
intelligence the product, improve the user products have been the embedded AI
consolidate the
technology experience, and build the promoted in the market technology has been
Company's
embedded AI algorithm and and applied in the field applied in many products.
leading position
implementation platform and of smart home and
in intelligent
develop innovative products for a home appliances.
control
variety of application scenarios.
technology.
Photovoltaic inverter and power
The key technical
conversion system are the key
problems of the 60KW Supplement the
links of energy conversion in
photovoltaic inverter Products of tens of kw to Company's
Source-Network-Load-Storage.
and 120KW power hundreds of kw have been solutions on
Photovoltaic This project studies the
conversion system have developed and the household,
inverter and photovoltaic inverter and power
been solved and they technology is at the industrial and
power conversion conversion system of different
are now in the stage of industry-leading level, commercial
system (PCS) power levels to meet the needs of
testing and verification, enriching the Company's photovoltaic
application in household,
and will be gradually products. energy storage
industrial and commercial
promoted and applied in products.
photovoltaic energy storage and
bulk.
charging projects.
This project studies the high The GB 20KW-240KW Form a full range
High power DC Develop 20kw~720kw
power DC charging piles of products have been of charging pile
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
charging pile different power levels to meet the developed and delivered charging piles. products, and
needs of application in various in bulk; the technical expand the DC
charging stations and industrial development and fast charging,
and commercial photovoltaic verification of supercharging
energy storage and charging supercharging pile and photovoltaic
projects. 360KW-720KW have energy storage
been completed. and charging
market.
This project studies a new type of Improve the
The technical
motor to meet the needs of the capability of
performance is at the
rotating mirror semi-solid radar customizing
The key technologies industry-leading level and
products for motors. This motor special motors
Intelligent driving have been delivered in meets the quality
especially meets the stringent and develop new
on-board radar bulk to well-known requirements of vehicle
environmental adaptability and markets for
motor enterprises in the specification level; the
reliability requirements in motor products of
industry. automated manufacturing
autonomous vehicle applications vehicle
of products has been
and achieves ultra-silence and specification
achieved.
other specifications. level.
The technical
This project studies the BMS development and Enrich the
system for different strings and verification have been This project develops the Company's BMS
battery specifications to manage completed, and the BMS system for different products in
and optimize the operation safety product platform strings and battery energy storage,
Energy storage
and life of energy storage continues to iterate and specifications and can be attract energy
BMS
batteries; meet the needs of have been applied in applied in various storage BMS big
various industrial and commercial bulk storage and industrial and commercial clients and
energy storage and bulk storage industrial and energy storage projects. expand the
systems. commercial energy market share.
storage systems.
Conduct
This project studies the liquid technical
The key technical
cooling technology to effectively preparation and
problems have been The technical
improve the safety and life of verification for
solved and the key performance such as the
Liquid cooling equipment and meet the cooling developing a new
technologies have been temperature control and
technology requirements of high power generation of
tested and verified in reliability are at the
systems such as the energy liquid cooling
the energy storage industry-leading level.
storage systems and charging energy storage
system.
piles. system and
charging system.
The technical
performance in revolving
The development of the speed, life, noise, power
Conduct
first generation of density and efficiency is
Coreless motor This project develops a brushless technical pre-
products has been at the industry-leading
and dexterous coreless motor and its module research and seek
completed and the level; the development of
hand module suitable for the dexterous hands opportunities for
dexterous hand module coreless motor and
technology of humanoid robots. humanoid robot
is in the technical pre- module suitable for
industry chain.
research stage. dexterous hands of
humanoid robots is
realized.
As a core unit in motion control, The technology
The technical Enrich the servo
the servo drive system can platform is under
performance is at the production line,
achieve high-precision drive and continuous
industry-leading level improve the
Servo drive positioning. This project develops development, forming a
with cost competitiveness; product
system a servo drive system that can number of product
the large-scale industrial competitiveness
control the AC permanent magnet series, and has been
application of the product and expand the
synchronous motor with high applied to the
has been achieved. market share.
precision, which will be applied automation equipment
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
to innovative products in different in many industries.
scenarios.
The technology
platform is under Improve the
The project develops the motion continuous The technical Company's
control card, PLC and encoder of development, and performance is at the market
high precision and high several prototype industry-leading level competitiveness
Motion control adaptability for the drive motor, products have been with cost competitiveness; in industrial
which will be applied to promoted in the market the large-scale industrial motor control
innovative products in different and applied in the field application of the product system and robot
scenarios. of intelligent industrial has been achieved. motor control
equipment and home system.
appliances.
This project develops a five- The technical
phase stepper driver for stepping The development and performance is at the
Expand the
motors, with uniform motion, mass production of the industry-leading level
market share of
Stepper driver strong load capacity and high five-phase stepper with cost competitiveness;
high-end stepper
precision and applied to driver have been the large-scale industrial
drivers.
innovative products in different completed. application of the product
scenarios. has been achieved.
This project studies a
cloud platform system
suitable for equipment and
energy management to Form a device-
achieve equipment cloud-APP
This project studies and develops
monitoring and integrated
a digital energy management The iterative
management, data solution in the
Digital energy platform to conduct digital development continues
analysis, storage and field of new
management management of the Company's and the product is
statistics, planning and energy, and
cloud platform new energy equipment and forms already available for
implementation, satisfying explore new
a cloud-device-APP integrated commercial use.
the enterprises' needs for business models
system solution.
equipment and energy on operation and
management and the maintenance.
users' and customers'
needs for operation and
maintenance.
The product is suitable for
Consolidate the
the application scenarios,
Company's
Smart lithium This project aims at developing Mass production has and the technical
leading position
battery for RV the anti-collision, waterproof and been completed and the performance is at the
in the market
and ship-borne anti-falling smart lithium battery product platform is industry-leading level
segments such as
electrical for RV and ship-borne electrical being upgraded and with cost competitiveness;
RV, golf cart and
appliances appliances. iterated. the large-scale industrial
ship-borne smart
application of the product
lithium battery.
has been achieved.
R&D personnel of the Company
2023 2022 Variable proportion
Number of R&D personnel (person) 2,004 1,776 12.84%
Proportion of R&D personnel 21.50% 21.20% 0.30%
Educational background of R&D personnel
Bachelor 1,317 1,186 11.05%
Master 158 125 26.40%
Doctor and above 3 3 0.00%
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Junior college degree and below 526 462 13.85%
Age composition of R&D personnel
Below 30 834 797 4.64%
30-40 936 797 17.44%
Above 40 234 182 28.57%
R&D investment of the Company
2023 2022 Variable proportion
R&D investment (RMB) 834,406,343.71 719,662,208.72 15.94%
Proportion of R&D investment in
9.28% 8.11% 1.17%
operating income
Capitalized amount of R&D
144,436,732.73 127,316,072.63 13.45%
investment (RMB)
Proportion of capitalized amount in
17.31% 17.69% -0.38%
R&D investment
Reasons for and impacts of major changes in the composition of the Company's R&D personnel
□ Applicable Not applicable
Reasons for the significant change in the proportion of total R&D investment to the operating income compared
with that of the previous year
□ Applicable Not applicable
Reasons for significant changes in the capitalization rate of R&D investment and explanation
□ Applicable Not applicable
5. Cash flow
Unit: RMB
Items 2023 2022 YoY increase or decrease
Subtotal of cash inflow from operating activities 9,742,654,137.01 9,194,212,756.21 5.97%
Subtotal of cash outflow from operating activities 8,276,705,637.83 8,703,157,679.88 -4.90%
Net cash flow from operating activities 1,465,948,499.18 491,055,076.33 198.53%
Subtotal of cash inflow from investment activities 39,243,483.78 63,633,384.24 -38.33%
Subtotal of cash outflow from investment activities 1,187,630,073.16 840,702,901.36 41.27%
Net cash flow from investment activities -1,148,386,589.38 -777,069,517.12 -47.78%
Subtotal of cash inflow from financing activities 985,342,992.26 1,118,783,953.99 -11.93%
Subtotal of cash outflow from financing activities 1,218,525,834.63 1,243,705,863.29 -2.02%
Net cash flow from financing activities -233,182,842.37 -124,921,909.30 -86.66%
Net increase in cash and cash equivalents 120,462,012.53 -361,823,264.97 133.29%
Main influencing factors of the significant year-on-year changes in relevant data
Applicable □ Not applicable
1. Net cash flow from operating activities: It is due to the excessive sales outstanding, the inventory
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
destocking and procurement scale control, the misallocation of sales collection and purchase payment period,
and the increase in the net cash flow from operating activities.
2. Net cash flow from investment activities: It is due to the increase in the purchase of financial products
during the Reporting Period compared with that over the same period of last year.
3. Net cash flow from financing activities: It is due to the termination of the stock incentive plan,
repurchase of restricted stocks and repurchase of shares during the Reporting Period.
Reasons for the significant difference between the net cash flow from operating activities during the
Reporting Period and the net profit for the year
□ Applicable Not applicable
V. Analysis of non-main business
Applicable □ Not applicable
Unit: RMB
Proportion in Is it
Amount Explanation of reasons
total profit sustainable
Actual profits and losses from forward exchange
Investment income -11,234,586.49 -2.13% and profits and losses from equity investments No
during the Reporting Period.
Profit and loss from Changes in fair value arising from equity
12,535,503.26 2.37% No
changes in fair value investments held
Provision for inventory falling price reserves and
Impairment of assets -73,727,329.86 -13.95% No
credit impairment losses
Non-operating income 6,779,756.94 1.28% No
Non-operating expenditure 21,281,506.27 4.03% No
VI. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
End of 2023 Beginning of 2023
Increase or
Proportion Proportion Explanation of major
decrease in
Amount in total Amount in total changes
proportion
assets assets
Monetary
1,550,450,889.82 13.86% 1,403,026,071.34 13.51% 0.35% No significant changes
capital
Accounts
2,431,773,877.56 21.74% 2,549,734,039.66 24.55% -2.81% No significant changes
receivable
Contract
No significant changes
assets
The amount at the end of
Inventory 1,653,816,715.51 14.79% 1,992,952,212.53 19.19% -4.40% the Reporting Period is
RMB 339.14 million less
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than that at the beginning
of the period, with a
decrease of 17.02%.It was
caused mainly by inventory
reduction and supply-side
efficiency increase during
the Reporting Period.
Investment
103,404,402.85 0.92% 106,242,777.85 1.02% -0.10% No significant changes
property
The amount at the end of
the Reporting Period is
RMB 14.2 million more
Long-term than that at the beginning
equity 37,748,179.30 0.34% 23,550,658.91 0.23% 0.11% of the period, with an
investment increase of 60.29%.It was
caused mainly by new
equity investments during
the Reporting Period.
Fixed assets 2,102,862,886.72 18.80% 1,840,358,093.74 17.72% 1.08% No significant changes
The amount at the end of
the Reporting Period is
RMB 333.33 million more
than that at the beginning
of the period, with an
increase of 141.98%.The
Construction
568,107,950.65 5.08% 234,775,312.11 2.26% 2.82% main reason is the increase
in progress
in investment in the
construction of Huizhou
YAKO Automation Plant
and Nantong Industrial
Park during the Reporting
Period.
Right-of-use
101,446,985.74 0.91% 106,196,901.87 1.02% -0.11% No significant changes
assets
Short-term
279,348,750.00 2.50% 283,351,495.57 2.73% -0.23% No significant changes
loans
Contractual
168,681,571.89 1.51% 138,281,929.17 1.33% 0.18% No significant changes
liabilities
Long-term
437,747,877.47 3.91% 581,500,000.00 5.60% -1.69% No significant changes
loans
Lease
61,429,811.03 0.55% 73,610,791.09 0.71% -0.16% No significant changes
liabilities
High proportion of overseas assets
Applicable □ Not applicable
Proportion
Control
of foreign Is there a
measures to
Reasons of Operation assets to significant
Asset details Asset size Location ensure the Earning position
formation mode net assets risk of
safety of
of the impairment
assets
Company
Financial
Operation Investment R&D,
Pune, supervision
Center in and 473,502,563.91 production 43,049,031.37 7.53% No
India and external
India establishment and sales
audit
Dong Nai Financial
Investment Dong R&D,
Operation supervision
and 825,183,505.15 Nai, production 202,974,764.93 13.13% No
Center in and external
establishment Vietnam and sales
Vietnam audit
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Explanation
of other None
situations
2. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
Profits and
Changes in Impairment
losses from Amount of Other
Opening cumulative fair accrued in Amount of sale in
Items changes in fair purchase in the change Closing balance
balance value included in the current the current period
value in the current period s
equity period
current period
Financial assets
1. Tradable
financial assets
(excluding 342,959,450.31 12,535,503.26 248,096,517.73 1,633,399,461.43 1,332,190,327.84 656,704,087.16
derivative
financial assets)
4. Other equity
instrument 41,192,950.00 41,192,950.00
investments
Subtotal of
342,959,450.31 12,535,503.26 248,096,517.73 1,674,592,411.43 1,332,190,327.84 697,897,037.16
financial assets
Total of the
342,959,450.31 12,535,503.26 248,096,517.73 1,674,592,411.43 1,332,190,327.84 697,897,037.16
above
Financial
0.00 0.00
liabilities
Contents of other changes
None.
Are there significant changes in the measurement attributes of the Company's main assets during the Reporting
Period
□ Yes No
3. Restricted asset rights by the end of the Reporting Period
Book value at the
Items Reasons for restriction
end of the period
Monetary Apply to the bank for the issuance of bills and guarantee deposits; amount of freezing of property;
39,587,800.49
capital financial subscription during the subscription period
Fixed assets 119,899,873.68 Mortgage loans for buildings
Construction
112,992,616.66 Mortgage loans for projects under construction
in progress
Intangible
59,492,901.97 Mortgage loans for land use rights
assets
Total 331,973,192.80
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VII. Investment analysis
1. General situation
Applicable □ Not applicable
Investment in the Reporting Period Investment amount in the same period of
Range of change
(RMB) last year (RMB)
61,192,950.00 42,352,940.00 44.48%
2. Major equity investment obtained during the Reporting Period
□ Applicable Not applicable
3. Major non-equity investment obtained during the Reporting Period
□ Applicable Not applicable
4. Investment in financial assets
(1) Securities investment
□ Applicable Not applicable
There was no securities investment during the Reporting Period.
(2) Derivatives investment
Applicable □ Not applicable
1) Derivatives investment for the purpose of hedging during the Reporting Period
Applicable □ Not applicable
Unit: RMB ten thousand
Proportion of
investment
Profits and Changes
amount at the
losses from in Amount of Amount of
end of the
Initial changes in cumulativ purchase sale during
Types of derivatives Beginnin Ending period in net
investment fair value e fair during the the
investment g amount amount assets of the
amount in the value Reporting Reporting
Company at
current included Period Period
the end of the
period in equity
Reporting
Period
Trading of foreign
147,320.36 0 137 0 147,320.36 137,403.08 9,917.28 1.58%
exchange derivatives
Total 147,320.36 0 137 0 147,320.36 137,403.08 9,917.28 1.58%
Explanation of accounting The Company has made corresponding accounting and presentation for foreign-exchange derivative
policies and specific transaction to be done according to Accounting Standards for Business Enterprises No. 22 - Recognition
accounting principles for and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 24 -
hedging business during Hedge Accounting, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial
the Reporting Period, as Instruments issued by Ministry of Finance, and other regulations and guides. Foreign exchange
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well as whether there have derivative contracts were initially and subsequently measured using tradable financial assets, which fair
been significant changes value is priced by financial institutions based on open market trading data, and there has been no
compared to the last significant change compared to the last Reporting Period.
Reporting Period
Explanation of actual
The amount included in current profits and losses from foreign-exchange derivative transactions
profits and losses in the
conducted during the Reporting Period was approximately RMB -1.5385 million.
Reporting Period
The Company conducted forward exchange transaction, effectively reducing the risk of exchange
Explanation of hedging
fluctuations through reasonable RMB forward exchange transaction, focusing on future transaction costs
effect
and incomes, and achieving asset hedging with the aim of avoiding risks.
Capital sources of
Self-own capitals
derivatives investment
I. Risk analysis of forward exchange transaction
The forward exchange transaction business carried out by the Company and its subsidiaries followed the
principle of locking in exchange rate risk and not engaging in speculative or arbitrage trading operations.
However, there were still certain risks in forward exchange transaction operations:
1. Exchange rate fluctuation risk: In the event of significant fluctuations in exchange rates, if the forward
settlement exchange rate stipulated in the confirmation letter for forward exchange transactions was
lower than the real-time exchange rate on the settlement day, it will cause exchange losses.
2. Internal control risk: Because forward exchange transactions are highly specialized, risks may arise
due to inadequate internal control systems.
3. Customer default risk: If the customer's accounts receivable are overdue and the payment cannot be
collected within the predicted payment period, it will cause a delay in forward exchange settlement and
result in losses for the Company.
4. Risk of payment collection prediction: In general, the Sales Department of the Company predicts
payment collection based on customer orders and expected orders. Nonetheless, during the actual
execution process, customers may adjust their own orders and the Company may make an inaccurate
payment prediction, leading to the risk of delayed delivery of forward exchange settlement.
Risk analysis and control 5. Legal risk: Changes in relevant laws or violations of relevant legal systems by counterparties may
measures of derivatives result in contracts being unable to be executed normally and cause losses to the Company.
positions in the Reporting II. Risk control measures
Period (including but not
limited to market risk, 1. The Company has formulated the Internal Control System for Forward Exchange Transactions, which
liquidity risk, credit risk, provides clear regulations on the Company's foreign exchange transaction operating principles, approval
operational risk, legal risk, authority, internal operating procedures, responsible departments and individuals, information isolation
etc.) measures, and risk management for forward exchange transaction, and can meet the needs of practical
operations, and its internal control and risk management measures formulated are practical and effective.
2. The finance center and audit department of the Company, as relevant responsible departments, have
clear management positioning and responsibilities, and responsibilities are assigned to their positions.
Through this hierarchical management, the risks of single person or individual department operations are
fundamentally eliminated, and the speed of risk response is also improved while effectively controlling
risks.
3. To prevent delayed delivery of forward exchange transactions, the Company attaches great importance
to the management of accounts receivable and actively collects accounts receivable to avoid the
phenomenon of overdue accounts receivable.
4 The Company engages in financial derivative transaction business with large commercial banks with
legal qualifications, closely monitors relevant laws and regulations in the field, avoiding potential legal
risks.
5. The Company's forward exchange transactions must be based on a cautious prediction for foreign
currency receipts (payments) of the Company, and the foreign currency amount of the foreign exchange
transaction contract must not exceed 90% of the annual planned total amount of foreign currency receipts
(payments).The delivery period of forward exchange transactions needs to match the Company's
predicted foreign currency collection time.
Changes in market price
or fair value of products
of the invested derivatives
during the Reporting
Period, and the disclosure
Determine changes in fair value based on market quotes from external financial institutions.
of specific methods used
and relevant assumptions
and parameters set in the
analysis of the fair value
of derivatives
46
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Litigation (if applicable) Not applicable
Disclosure date of Board
of Directors
announcement for January 14, 2023
approval of derivatives
investment (if any)
The forward exchange transactions carried out by the Company is to meet the needs of normal
Special opinions of
production and operation, not solely for profit, and the Company has also formulated the Internal Control
independent directors on
System for Forward Exchange Transactions to avoid and prevent exchange rate fluctuation risks and
derivatives investment
strengthen risk management and control. For details, please refer to the Company's disclosure on
and risk control of the
Independent Opinions of Independent Directors on Related Matters on CNINFO
Company
(http://www.cninfo.com.cn) on January 14, 2023
2) Derivatives investment for the purpose of speculation during the Reporting Period.
□ Applicable Not applicable
The Company did not have any derivatives investment for the purpose of speculation during the Reporting
Period.
5. Usage of raised capitals
Applicable □ Not applicable
(1) General use of raised capitals
Applicable □ Not applicable
Unit: RMB ten thousand
Total Amoun
amount t of
Cumulativ
Total of raised Cumulativ raised
e total
amount capitals e total Total capitals
Year Total amount
Total Net of raised for amount of amount Purpose and which
of Way of amount of proportion
amount of amount of capitals change raised of destination of have
raising raising raised of raised
raised raised used in of capitals unused unused raised been
capital capitals capitals capitals
capitals capitals the purpose with raised capitals idle for
s used with
current during changed capitals more
changed
period the purposes than
purposes
Reportin two
g Period years
Temporary
replenishmen
Public
t and deposit
offering of
2019 56,543.65 56,543.65 3,233.42 47,801.67 0 0 0.00% 8,741.98 in the special 0
convertibl
account for
e bonds
raised
capitals
Temporary
replenishmen
Non-
t and deposit
public 103,684.7 103,684.7 46,698.6 16,350.7
2021 87,334.01 0 69,144.83 66.69% in the special 0
offering of 1 1 9 0
account for
shares
raised
capitals
160,228.3 160,228.3 49,932.1 135,135.6 25,092.6
Total -- 0 69,144.83 43.15% -- 0
6 6 1 8 8
47
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
General use of raised capitals
1. Actual amount and time of arrival of capitals raised
(1) Public offering of convertible corporate bonds to raise funds in 2019
The Company publicly issued 5.73 million convertible corporate bonds on March 7, 2019, each with a par value of RMB 100, with a
total amount of RMB 573 million, with the approval in the Reply of China Securities Regulatory Commission on the Approval of
Public Offering of Convertible Corporate Bonds by Shenzhen Topband Co., Ltd. (ZJXK [2018] No. 1842).The issuance method was
priority placement to original shareholders, and the balance after priority placement to original shareholders (including the part for
which the original shareholders gave up priority placement) was issued to public investors online through the trading system of
Shenzhen Stock Exchange, with stand-by underwriting of the part with the subscription amount less than RMB 573 million by the
lead underwriter. Capitals with a total amount of RMB 573,000,000.00 were raised, and the net capitals raised were RMB
565,436,509.42 after deduction of all the issuance costs amounting to RMB 7,563,490.58.
The capitals arrived on March 13, 2019. Ruihua Certified Public Accountants (Special General Partnership) verified the arrival and
issued the Capital Verification Report (RHYZ [2019] No. 48270001).
(2) Non-public offering of shares to raise capitals in 2021
Shenzhen Topband Co., Ltd. issued 92,105,263 A shares to specific targets in private at the price of RMB 11.40 per stock, with a par
value of RMB 1 per stock, with the approval in the Reply of China Securities Regulatory Commission on the Approval of Non-
public Offering of Shares by Shenzhen Topband Co., Ltd. (ZJXK [2020] No. 1865). The total amount of funds raised was RMB
1,049,999,998.20, and the net funds actually available for use were RMB 1,036,847,068.71 after deduction of all the issuance costs
amounting to RMB 13,152,929.49 (tax-exclusive).
The funds were transferred to the Company's special account for raising funds on May 10, 2021.Baker Tilly China Certified Public
Accountants (Special General Partnership) verified the arrival and issued the Capital Verification Report (TZYZ [2021] No. 29460)
for the capitals.
2. Usage amount and balance of funds raised in 2023
(1) Use of capitals raised by public issuing of convertible bonds in 2019
As of December 31, 2023, the Company has invested RMB 478.0167 million in capital-raising projects. Among them, RMB
451.7819 million was directly invested in the capital-raising projects, and RMB 26.2348 million was returned before the raised
capitals were put in place. On December 31, 2023, RMB 90 million idle raised capitals was used to temporarily supplement the
working capital; as of December 31, 2023, the balance of the raised capitals account was RMB 4.0609 million (including interest
income).
(2) Non-public offering of shares to raise capitals in 2022
As of December 31, 2023, the Company had invested RMB 873.3401 million in capital-raising projects. Among others, RMB
696.0206 million was directly invested in capital-raising projects, RMB 45.3987 million was returned before the raised capitals were
put in place, and RMB 131.9208 million was used to pay for the capital-raising projects using bankers' acceptance bills and invested
in the capital-raising projects with the capital raised in equal replacement. On December 31, 2023, RMB 130 million idle raised
capitals were used to temporarily supplement the working capital, and the amount of idle raised capitals under cash management was
RMB 19.6425 million; as of December 31, 2023, the balance of the capital-raising account was RMB 15.1367 million (including
interest income).
(2) Situation of projects with capital-raising commitments
Applicable □ Not applicable
Unit: RMB ten thousand
Where
Projects with Whether
Investme there is
investment the Total Amount Accumulate Benefits Whether
Total nt The date any
commitments project committe invested d achieved the
investmen progress when the significan
and has been d during investment during expected
t after by the project is t change
investment changed investmen the by the end the benefits
adjustmen end of the ready for in the
direction of (includin t of raised Reportin of the Reportin are
t (1) period (3) use feasibilit
over raised g some capitals g Period period (2) g Period achieved
= (2)/(1) y of the
capitals changes)
project
Committed investment projects
Construction Some are
project of in use, and
Not
Topband East the rest are -
No 56,543.65 56,543.65 3,233.42 47,801.67 84.54% applicabl No
China still under 3,192.87
e
Operation constructio
Center n
Topband Not Not
Yes 73,684.71 4,539.87 0 4,539.87 100.00% No
Huizhou No. applicable applicabl
48
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
2 Industrial e
Park Project
Topband
Nantong
Industrial
Not
Park Phase-I 38,553.8
Yes 61,000 44,649.31 73.20% applicabl No
Stage-1 6
e
Project
(Lithium
Battery)
Replenish the
Not
Company's
No 30,000.00 38,144.83 8,144.83 38,144.83 100.00% applicabl No
working
e
capital
Subtotal of
committed 160,228.3 160,228.3 49,932.1 -
-- 135,135.68 -- -- -- --
investment 6 6 1 3,192.87
projects
Investment direction of over raised capitals
None
160,228.3 160,228.3 49,932.1 -
Total -- 135,135.68 -- -- -- --
6 6 1 3,192.87
Explanation
of the
situation and
reasons of
failing to
reach the
planned
progress or
expected
income (by
specific None
project)
(including the
reason for
selecting "Not
applicable"
for "whether
the expected
income has
been
achieved")
Explanation
of major
changes in None
project
feasibility
Amount, use
and progress
Not applicable
of over raised
capitals
Applicable
Changes occurred in previous years
Change of
implementatio 1. On January 8, 2022, the Company held the 18th Meeting of the 7th Board of Directors, deliberated and passed the
n location of Proposal on the Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, and
investment agreed that the Company would change the implementation subject, location and mode of the lithium battery
projects with business in the planned project. Specifically, the implementation place was changed from Huizhou, Guangdong
raised capitals Province to Nantong, Jiangsu Province.
2. On August 18, 2022, the Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors,
deliberated and passed the Proposal on Changing the Implementation Mode and Location Again in Some Capital-
raising Projects, and agreed to changes in the implementation mode and location of "Topband Nantong Industrial
49
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Park Phase-I Stage-1 Project (Lithium Battery)", where the location was changed from "Area A, Nantong Free Trade
Zone, Jiangsu" to "Nantong Economic Technological Development Area, Jiangsu".
Applicable
Changes occurred in previous years
1. On January 8, 2022, the Company held the 18th Meeting of the 7th Board of Directors, deliberated and passed the
Proposal on the Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, and
agreed that the Company would change the implementation subject, location and mode of the lithium battery
business in the planned project. Specifically, the implementation mode was changed from the land acquisition for
building construction to the direct purchasing of buildings with infrastructure constructed.
Adjustment of 2. On August 18, 2022, the Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors,
implementatio deliberated and passed the Proposal on Changing the Implementation Mode and Location Again in Some Capital-
n mode of raising Projects, and agreed to changes in the implementation mode and location of "Topband Nantong Industrial
investment Park Phase-I Stage-1 Project (Lithium Battery)", where the mode was changed from "the direct purchasing of
projects with buildings with infrastructure constructed" to "the land acquisition for building construction".
raised capitals Changes occurred during the Reporting Period:
On September 7, 2023, the Company held the 37th Meeting of the 7th Board of Directors and the 30th meeting of the
7th Board of Supervisors, deliberated and passed the Proposal on Changing the Use of Part of the Raised Funds and
Permanently Supplementing Working Capital, and agreed that the use of the remaining raised funds for the Topband
Huizhou No. 2 Industrial Park Project (Motor) for which the Company issued shares in the non-public manner in
2021 would be changed to permanently supplementing working capital, and the remaining RMB 81.4483 million
(excluding interest income) would be used to permanently supplement working capital for the Company's daily
operating activities.
The above changes were deliberated and passed by the General Meeting of Shareholders.
Applicable
1. The Company invested RMB 26.2348 million in advance in the operation center project of Topband East China
with self-raised capitals. Ruihua Certified Public Accountants (Special General Partnership) conducts a special audit
on the above matters, and issues the Authentication Report on the Report of Shenzhen Topband Co., Ltd. on the
Investment Projects with Self-raised Capitals in Advance (RHHZ [2019] No. 48250027). On July 25, 2019, the 25th
Upfront Meeting of the 5th Board of Directors of the Company deliberated and passed the Proposal on Using Raised Capitals
investment to Replace Self-raised Capitals Invested in Advance. The Company had replaced the pre-invested self-raised funds as
and of August 1, 2019.
replacement 2. The Company invested RMB 45.3987 million in Topband Huizhou No. 2 Industrial Park Project with self-raised
of investment funds in advance. Baker Tilly China Certified Public Accountants (Special General Partnership) conducted a special
projects with audit on the matter above, and issued the Authentication Report of Pre-investment of Shenzhen Topband Co., Ltd. in
raised capitals the Investment Project of Funds Raised with Self-raised Funds (TZYZ [2021] No. 31911). The 10th Meeting of the
7th Board of Directors was held to review and approve the Proposal on Replacement of Pre-invested Self-raised
Funds with Funds Raised on June 8, 2021.The Company had replaced the pre-invested self-raised funds as of June
10, 2021.
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear
consent on the matter.
Applicable
1. On December 1, 2023, the Company held the 30th Meeting of the 7th Board of Directors, deliberated and passed
Temporary
the Proposal on Temporarily Replenishing Working Capital with Some Idle Raised Capitals, and agreed that the
replenishment
Company would temporarily replenish working capital with no more than RMB 220 million idle capitals raised, with
of working
a period of not more than 12 months. As of December 31, 2023, RMB 220 million temporary supplementary current
capital with
assets had been used.
idle capitals
raised
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear
consent on the matter.
Amount and
reasons of the
balance of
raised capitals Not applicable
in project
implementatio
n
1. On December 1, 2023, the Company held the 30th Meeting of the 7th Board of Directors, deliberated and passed
Purpose and the Proposal on Temporarily Replenishing Working Capital with Some Idle Raised Capitals, and agreed that the
whereabouts Company would temporarily replenish working capital with no more than RMB 220 million idle capitals raised, with
of unused a period of not more than 12 months. As of December 31, 2023, RMB 220 million temporary supplementary current
raised capitals assets had been used.
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear
50
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
consent on the matter.
2. On March 29, 2023, the Company held the 32nd Meeting of the 7th Board of Directors, deliberated and passed the
Proposal on Cash Management with Some Idle Raised Capitals and Self-own Funds, and agreed that the Company
would purchase short-term principal-protected bank financial products with no more than RMB 100 million idle
raised capitals and no more than RMB 600 million self-own funds. The capitals can be used on a rolling basis within
the amount above. As of December 31, 2023, the Company had used RMB 19.6425 million idle capitals raised for
cash management.
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear
consent on the matter.
3. The remaining unused raised capitals are deposited in the Company's special account for raising funds.
Problems or
other
situations in
None
the usage and
disclosure of
raised capitals
(3) Change of projects with raised capitals
Applicable □ Not applicable
Unit: RMB ten thousand
Total amount Is there any
Actual Investment Whether
of raised Actual The date Benefits significant
Corresponding cumulative progress the
funds to be investment when the achieved change in
Project after originally investment by the end expected
invested in during the project is during the the
change promised by the end of the benefits
the project Reporting ready for Reporting feasibility of
project of the period (3) are
after change Period use Period the project
period (2) = (2)/(1) achieved
(1) after change
Topband
Nantong Topband
Industrial Huizhou No. 2
Not
Park Phase-I Industrial Park
61,000.00 38,553.86 44,649.31 73.20% 0 applicabl No
Stage-1 Project
e
Project (Lithium
(Lithium Battery)
Battery)
Topband
Replenish the
Huizhou No. 2 Not
Company's
Industrial Park 38,144.83 8,144.83 38,144.83 100.00% 0 applicabl No
working
Project e
capital
(Motor)
Total -- 99,144.83 46,698.69 82,794.14 -- -- 0 -- --
(1) In January 2022, the downstream market demand was strong due to the rapid
development of the Company's lithium battery business in recent years. The
Company originally planned to purchase land and construct factory buildings to
promote the lithium battery project, with a construction period of 2 years. In the
Company's Nantong lithium battery project, the infrastructure of the existing factory
buildings purchased was already completed, so the construction period of the project
will be greatly shortened. In order to promote the expansion of lithium battery
business as soon as possible, fully seize market opportunities in the lithium battery
industry and new energy industry, enhance the Company's market competitiveness
Explanation of reason for change, decision- and business performance and utilize raised funds more efficiently, the Company
making procedure, and information disclosure plans to change the implementation subject, location and mode of the lithium battery
(by specific project) business in the original fund-raising project after a comprehensive evaluation.
The Company held the 18th (Extraordinary) Meeting of the 7th Board of Directors,
the 15th (Extraordinary) Meeting of the 7th Board of Supervisors and the 1st
Extraordinary General Meeting of Shareholders in 2022, deliberated and passed the
Proposal on the Implementation Mode, Subject and Location of Changes in Some
Capital-raising Projects, and agreed that the Company would change the
implementation subject, location and mode of the lithium battery business in the
planned project.
(2) In August 2022, due to the change in the overall plan of the Management
51
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Committee of the Nantong Economic and Technological Development Zone for the
implementation location of the Company's Topband Nantong Industrial Park Phase-I
Stage-1 Project and in view of the utilization efficiency of the Company's raised
funds, the speed of promoting the fund-raising project and the Company's business
development needs, the Company decided, after friendly consultation with the
Management Committee of the Nantong Economic and Technological Development
Zone, to give up the right to purchase the use of relevant assets, change the
implementation mode and location of the fund-raising project, use the raised funds
and its own funds to purchase the land use rights of approximately 250 mu in the
Nantong Economic and Technological Development Zone, and implement the
Topband Nantong Industrial Park Phase-I Stage-1 Project (Lithium Battery) through
self-construction.
The Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors,
the 22th (Extraordinary) Meeting of the 7th Board of Supervisors, the 2nd
Extraordinary General Meeting of Shareholders in 2022, deliberated and passed the
Proposal on Changing the Implementation Mode and Location Again of Some
Capital-raising Projects, and changed the implementation mode and location of the
lithium battery business in the planned capital-raising project with the non-public
offering of shares in 2021.
(3) In September 2023, the Company continued to implement the motor project in
Topband Huizhou No. 2 Industrial Park based on the overall plan for and
construction period of Topband Huizhou No. 2 Industrial Park and the market
demand for the motor project. The input of funds estimated at the initial stage of the
project is already difficult to cover the overall project needs of Topband Huizhou No.
2 Industrial Park, and it is difficult to meet the requirements for the construction
period of the motor project. At the same time, extending the construction period will
make it difficult to meet the market demand for the motor project in the future. In
order to cope with the complex and ever-changing market environment, the
Company realized a production capacity of 3.5 million sets of high-efficiency motors
per year in mature industrial parks in Shenzhen, Vietnam, etc. simultaneously with its
own supplementary funds, in order to quickly seize market opportunities.
Subsequently, the Company will continue to pay attention to the market environment,
dynamically adjust its layout, and continue to use its own funds to invest in the
construction of the project, in order to ensure the Company's market competitiveness
in the motor field. Therefore, the Company changed the use of funds raised for
Topband Huizhou No. 2 Industrial Park (Motor), and used the raised funds and
corresponding interest income to permanently supplement working capital.
On September 7, 2023, the Company held the 37th Meeting of the 7th Board of
Directors, the 30th Meeting of the 7th Board of Supervisors and the 2nd
Extraordinary General Meeting of Shareholders in 2023, and deliberated and passed
the Proposal on Changing the Use of Part of the Raised Funds and Permanently
Supplementing Working Capital.
(4) The Company disclosed the above information in strict accordance with the
information disclosure requirements.
Explanation of the situation and reasons of
failing to reach the planned progress or Not applicable
expected income (by specific project)
Explanation of major changes in the
Not applicable
feasibility of the project after change
VIII. Sale of major assets and equity
1. Sale of major assets
□ Applicable Not applicable
The Company did not sell any major assets during the Reporting Period.
2. Sale of major equity
□ Applicable Not applicable
52
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
IX. Analysis of major holding and equity participating companies
Applicable □ Not applicable
Situation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit
of the Company
Unit: RMB
Company Company Main Registered Operating Operating
Total assets Net assets Net profit
name type business capital income profit
R&D,
Huizhou
production,
Topband
sales, import RMB
Electrical Subsidiary 4,127,523,628.15 1,954,519,634.67 5,987,503,467.89 329,563,046.59 297,238,314.09
and export of 30,000
Technology
electronic
Co., Ltd.
components
Topband R&D,
SMART production,
DONG NAI Sub- sales, import USD 33.5
825,183,505.15 465,452,939.58 865,603,001.00 204,103,659.17 202,974,764.93
(VIETNAM) subsidiary and export of million
COMPANY electronic
LIMITED components
Situation of acquisition and disposal of subsidiaries during the Reporting Period
Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production and operations and
Company name
subsidiaries during the Reporting Period results
Yolaness Technology (HK) Co.,
Newly established and acquired No significant impact on the results of the Report
Limited
Huizhou Jiuwan Lvyuan
Newly established and acquired No significant impact on the results of the Report
Agriculture Co., Ltd.
YOLANESSAFRICA(PTY)LTD Newly established and acquired No significant impact on the results of the Report
Topband（Vietnam)Co.,ltd Liquidated and deregistered No significant impact on the results of the Report
Explanation of major shareholding companies
None.
X. Situation of structured entity controlled by the Company
□ Applicable Not applicable
XI. Prospects for the future development of the Company
(I) Social development trend and 2030 vision
1. Intelligence development
The development and application expansion of new technologies such as IOT, 5G and AI will open up
growth space and continuously accelerate the process of social intelligence. It is expected that the economic
value affected by technologies will exceed USD 60 trillion by 2030. The Company will continue to explore
53
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
innovative technologies in the future world and expand new opportunities for industry intelligence in various
application scenarios such as clothing, food, housing and transportation, enterprises, and cities.
With the rapid development of artificial intelligence (AI) technology and especially breakthroughs in large
models and robotics, we are standing on the threshold of a new era of intelligence. Large AI models such as
GPT and BERT have demonstrated amazing language understanding and generation capabilities, which will not
only greatly enhance the intelligence level of our products and services, but also provide us with new
opportunities to deeply explore data value, optimize business processes and innovate user interaction methods.
Especially in the field of robotics, we foresee that with the further optimization of AI algorithms and the
in-depth application of machine learning technology, future robots will be more intelligent and autonomous.
These robots can not only perform complex physical tasks, but also carry out advanced decision-making and
learning. They will be widely used in manufacturing, service, household and medical fields to greatly improve
the efficiency of production and the quality of life.
The Company will keep pace with this trend of intelligence development and increase R&D investments in
AI, big models and robotics. We are committed to integrating these cutting-edge technologies into our products
and solutions, not only to improve the level of intelligence of existing products, but also to explore new
business models and market opportunities. Through technological innovation, we will provide customers with
more intelligent, efficient and personalized services, and promote the Company's continued growth and
development in the era of intelligence.
2. Low-carbon development
The climate crisis caused by greenhouse gases is deepening year by year, driving energy conservation and
carbon reduction in countries around the world. It is expected that by 2050, China's cumulative investment in
various aspects such as energy production, energy use and ecology will reach RMB 300 trillion. The Company
will use the technology of "four electrics and one network" and seize the market opportunities brought by the
"carbon peaking and carbon neutrality" policy, helping with the global low-carbon development.
On a global scale, low-carbon development has become an irreversible trend. Faced with the challenges
brought by climate change, the Company is actively embracing a low-carbon future with unprecedented
determination. We believe that through technological innovation, we can not only address environmental
challenges, but also create a new era of green energy and sustainable development.
We are engaged in in-depth R&D and promotion of green energy technologies centered on power
electronics, electrochemistry and digital technology. The application of these technologies will greatly improve
54
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
energy utilization efficiency, reduce carbon emissions, and promote the green transformation of the energy
industry. In particular, our integrated solutions for solar power generation, energy storage and charging provide
strong support for energy systems with zero carbon emissions by integrating solar power generation, energy
storage and intelligent charging technologies.
In the future, we will continue to explore and develop more innovative low-carbon technologies and
solutions. We are committed to becoming a leader in low-carbon transformation and helping global customers
achieve greener and more sustainable development through our technologies and solutions. We believe that
through unremitting efforts, we can make significant contributions to the global low-carbon goals and jointly
create a cleaner and better future.
3. Internationalization
As the global supply chain fluctuates more tempestuously, its safety risks are increasing, and the supply
chain is developing towards multicentralization, internationalization and multiregional localization. On the one
hand, with the increasing complexity, personalization, and differentiation of terminal products, the product
R&D and delivery are required to be fast, and the quality be reliable and stable. China's industrial clusters and
engineer dividends have promoted the transfer of industries to China. On the other hand, with the impact of
international trade conflicts, geopolitical factors, and other factors, the risk of a single Chinese industrial chain
has significantly increased. With a combination of the two factors, the industry will gradually show a trend of
mainly focusing on China and developing towards multiple regions such as Southeast Asia and North America.
The Company will actively respond to new challenges in the supply chain, expand new opportunities in
multiple regions, and accelerate the pace of internationalization.
2030 vision of the Company
By 2030, the Company's goal is to provide customers with intelligent solutions through deep insight into
the pain points of users, scenarios and industries, making the world smarter and lower-carbon.
An intelligent society is the irresistible trend, with a long-term, continuous, wide-ranging and far-reaching
change, which will deeply affect modern life and change the form of products. We will seize the historical
opportunity of intelligent, scenario-based, green and low-carbon development, actively innovate business
models, make transform from components to products and then to solutions, innovate home appliance business
around the "four electrics and one network" technology, cultivate blue ocean market, expand tool business
product categories, maintain leading market share, and accelerate the development of new energy and industrial
business, achieving scale growth.
55
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
(II) Development strategies of the Company
1. Focusing on strategy for sustained and effective growth
In 2021, based on the Company's interim development goals for 2025, a vision blueprint for the next
decade was formulated, and the long-term development goals for 2030 were clearly proposed. The Company
will continue to focus on scale growth as its core goal, deepen the implementation of the five strategic policies
of "scale growth, close customer relationship, innovation-driven development, agile operation and
organizational evolution", build a pyramid profit model, enhance leading position in global intelligent control
solution providers, and achieve sustained and effective growth.
The Company will provide one-stop intelligent control solutions and services for the world's leading brand
customers with the advantage of the "four electrics and one network" technology, especially increasing business
development in the new energy industry, focusing on four main businesses of the "home appliances + tools +
new energy + industry", and make good use of the capital market platform to achieve high growth in operating
income scale through a combination of endogenous and extended methods.
2. Continuously enhancing innovation-driven technology and product competitiveness
The Company will adhere to innovation-driven development, continuously maintain R&D investment,
strengthen basic and cutting-edge technology research, construct technology control points, strengthen product
line construction and create more high-quality product platforms, promote the protection of intellectual assets
such as patents and trade secrets, build technological barriers, cultivate innovative growth engines, and
strengthen the cultivation of innovative talents.
At the same time, the Company will seize development opportunities such as "intelligence" and "low-
carbon", actively explore innovative businesses such as the Internet of Things and green commuting,
consolidate and expand the core technical capabilities of the "four electrics and one network", enhance market
and product development capabilities, and explore more high-value markets. The Company has identified key
development plans for "knock-out products" in various fields, focused on strategic opportunities and
strengthened innovation efforts around key categories.
3. Agile operation for improving quality, reducing costs and increasing efficiency
The Company will deepen the implementation of agile operation strategy, continuously optimize business
processes such as strategy, marketing, R&D, sales, purchase and after-sales, and improve end-to-end efficiency.
The Company will also increase efforts to reduce costs and increase efficiency, and comprehensively utilize
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
various means such as R&D and design cost reduction, purchase cost reduction, and manufacturing cost
reduction to achieve effective cost reduction for mature products.
4. Organizational reform and continuous evolution of process-oriented organizations
The Company will promote organizational evolution strategy, strengthen talent team building, quickly
increase the number of key positions, strengthen the capacity building of the middle office and background,
better empower the iron triangle team, and create a customer-centered process-oriented organization.
5. Accelerating international layout and building global multi-base delivery capabilities
The Company will continue to strengthen its close customer relationship strategy. In order to meet the
needs of customers for fast and nearby delivery, and in combination with business needs, the Company has
established operation centers, production and manufacturing centers, R&D centers, and representative offices in
multiple locations around the world. During the Reporting Period, the Company accelerated the process of
achieving production capacity in Vietnam and India, and the construction and mass production introduction of
factories in Mexico and Romania; at the same time, the Company utilized the advantages of global layout to
strengthen supply chain integration and enhance local purchase capabilities.
(III) Business plan for 2024
1. Realize scale growth: Based on the core technology of "four electrics and one network", continue
implementing the strategy of leading customers, leverage platform advantages and other means to achieve scale
growth in various industries, and increase the proportion of high-value products and autonomous and
controllable business; consolidate and expand the leading advantages in the fields of home appliances and tools,
accelerate the growth of new energy business, and effectively incubate innovative business;
2. Accelerate overseas market expansion: The Company will accelerate overseas market expansion based
on overseas manufacture. In 2024, the Company will expand its overseas marketing team, not only to seize the
opportunity of order transfer, but also to explore the needs of the local market and enhance product definition
and development capabilities.
3. Deepen the application of AI and robot products: With the rapid development of artificial intelligence
(AI) and humanoid robot technology, unprecedented development opportunities have emerged in the
intelligence industry. In 2024, Topband will further explore new industrial opportunities, accelerate the
development of core technologies such as mobile robots, servo drives and control technologies, create industry-
leading flagship products, actively develop top-level industry customers, and promote the in-depth application
of AI technology in existing and emerging business fields.
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
(IV) Fund demand and utilization plan
The Company is in a stage of rapid development and has a significant funding demand in terms of
equipment upgrades, expansion of production capacity, and overseas business development. The Company has
a good credit standing, so it is able to get strong support from the bank in a timely manner. In 2024, the
Company will combine its own development situation and development strategy, and make reasonable use of
various capital-raising channels to raise the necessary funds for the Company's development.
(V) Risks faced by the Company and countermeasures
1. External risks such as the macro environment
Trade frictions and geopolitical tensions will also produce adverse influences on business confidence and
investment. The Company may continue to face an uncertain external environment, so we will further
strengthen risk identification and control for various businesses and regions and adjust strategies timely to
minimize external influences.
2. Risks of technology upgrading
The intelligent controller industry technology, as the main business of the Company, is developing rapidly
with fast product upgrading and short life cycle. Although the Company continues to invest in R&D and owns a
number of invention and utility patents, there is still a risk that the technology will not be updated in time to
meet market demand, or lag behind competitors in launching new products, resulting in a decline in the market
share and profitability of the Company.
3. Exchange rate risk
The Company's revenue from export sales accounts for nearly 60% of the total revenue. In order to cope
with the risk of exchange rate fluctuation, the Company will reduce and hedge foreign exchange risks by
conducting RMB hedging business, international purchase and re-pricing of new product.
4. Other risks
There are many uncertainties in the current macro environment at home and abroad, and there are some
factors that are unfavorable to the operation of the Company. For example, the China-United States trade war,
shortage of raw materials, rising price, insufficient labor and customer credit risk will increase the uncertainty
of the Company's operation.
XII. Reception, investigation, communication, interview and other activities during the
Reporting Period
Applicable □ Not applicable
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Main contents Basic
Method Type of
Time of Location of of interview Information
of reception Reception object
reception reception and materials index for
reception object
provided investigation
TF Securities, Everbright Securities,
Shanghai Ducheng Investment, Yimi Fund,
Hangzhou Laixing Yuanpin Investment,
Zhongrong Fund, Efunds, Western
Leadbank FMC, China Merchants
Securities, Deppon, Shanghai Sunsource, TF
Securities, Shanghai Qushi Assets, Haitong
Securities, CITIC Prudential Fund, Taikang
Pension, CITIC Wealth, Shenzhen HillView
Capital, Shanghai Lingze Investment, Ping
An Asset Management, Temasek Holdings
Consulting (Shanghai), Teng Yue Partners,
LP, Sinolink Securities, Ucan Asset
Management, Chengnuo (Shanghai)
Investment, HSBC Jintrust Fund, AXA
SPDB Investment Managers, Current VC,
Guotai Junan Securities, Sino Life Asset,
Shanghai Greenwoods, Shenzhen Hongding
Wealth Management, Western Leadbank
FMC, China Future Capital, Mingya Funds,
GuoDu Securities, Rongtong Fund, China
Asset Management, Parantoux Capital,
Harvest Fund, Lubao Investment, Shenzhen
Hongding Wealth Management, Ren Bridge
Fund, Xinghua Fund, Infore Capital, Beijing
Zhenke Fund, AEGON-Industrial Fund,
China Merchants Fund, V Fund, CCB Life
Asset Management, Jumpstart Capital,
Shenzhen Shanqi Assets, Taikang Asset
Management, China Merchants Securities,
2023/1/6 Blackrock, Western Securities, Truvalue Learn about the
Conference operation of the
2023/1/9 Field Organizat Asset Management, Springs Capital, http://www.cni
room of the Essence Securities, UBS SDIC, Invesco Company; no
2023/1/12 survey ions nfo.com.cn
Company Great Wall, Soochow Securities, Citibank, information
2023/1/16 Blackrock, Dymon Asia Capital (Singapore), provided.
HSBC Global Asset Management USA,
HelVed capital, Manulife Asset Mgmt (HK)
Ltd, Millennium Capital Management,
Neuberger Berman, New Silk Road
Investment Pte, POLYMER CAPITAL
MANAGEMENT, Templeton Global
Equity, Frankin Templeton, Decent Capital,
Matthews International Capital, Guosen
Securities, GF Securties, Hel Ved Capital
Management, Prudence Investment
Management (Hong Kong), Fangyuan Fund
(Hong Kong), Essence Fund, Eastern Smart
Rock, ACORN Asset Management, Beijing
Yutian Asset Management, Biyun Asset
Management, Bosera Funds, Dajia Asset
Management, Tebon Fund, Oriental Alpha
Fund, Soochow Securities, GF Securities,
FOUNDER Fubon Fund, FORTUNE Royal
Asset, Everbright Securities, GF Qianhe,
CGB, Guangzhou Ruimin Private Equity
Fund, Franklin Templeton Sealand Fund,
Guolian Life, Guotai Fund, Guotai Junan
Securities, SDIC UBS Fund, China Reform
Securities, Guosen Securities, Haifutong
Fund, Hangzhou White Rhino Asset
Management, Hangzhou Qinpu Private
Equity Fund, True Value Partners, Sequoia
Capital Equity Investment, Hotland
Innovation Asset Management, HuaAn
Funds, Harfor Funds, HSBC Jintrust Fund,
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
China Universal Asset Management, Rising
Asset Management, Harvest Fund, CCB Life
Asset Management, Jiangsu Ruihua
Investment, BOCOM Schroders, Kaiyuan
Securities, Ningbo Yuanzhen Mingzhi
Investment, BNB Wealth Management,
ABC Wealth Management, Lion Fund,
Penghua Fund, Ping An Asset Management,
SPDB AXA Fund, First Seafront Fund, Ren
Bridge (Beijing) Asset Management,
Rongtong Fund, Ruida AMC, Sanya
Hongsheng Asset Management, Xiamen
Zhonglue Investment, Shanghai Chengzhou
Asset Management, Shanghai Shengmeng
Asset Management, Shanghai Orient
Securities, Shanghai Coastal Horn Private
Equity Fund, Shanghai Hedao Asset
Management, Shanghai Chaos Investment,
Shanghai Mingyu Asset Management,
Panjinginvest.com, Shanghai Chaser Asset
Management, Shanghai RunSafe Fund,
Shanghai Hawthorn Tree Zhenzhuo Asset
Management, Shanghai Tuling Asset
Management, Shanghai Zongyi Holding,
Shenwan Hongyuan Securities, Shenzhen
ELITIMES Asset Management, Shenzhen
JM Investment, Shenzhen Zhongying
Investment, Shenzhen Zhengyuan
Investment, Weixing Asset Management,
Western Securities, Tibet YuanCheng
Investment, Southwest Securities, New
China Asset, First State Cinda Fund, Aegon-
Industrial Fund, Yimi Fund, Zhonghai Fund,
Bank of Beijing Scotiabank Asset
Management, BOC International, Rosefinch
Fund.
Fullgoal Fund, Shenzhen Flying Tiger
Investment, SDIC UBS Funds, Rising Asset
Management, Essence Fund, Foresea Life
Insurance, Taikang Pension Insurance,
Zoomtrend Investment, Guosen Securities,
Lion Fund, Penghua Fund, Baoying Fund,
Qianyou Investment, Yinhua Fund, Ping An
Fund, Panze Assets, Legend Investment,
2023/2/1 Shenzhen ELITIMES Fund, Shenzhen
2023/2/2 Weihong Long-term Asset Management,
China Securities, FOUNDER Fubon Fund, Learn about the
2023/2/3 Conference First Capital, Changjiang Securities, Hainan operation of the
Field Organizat http://www.cni
2023/2/6 room of the Sanhua Private Equity, Lead Horse Capital, Company; no
survey ions nfo.com.cn
2023/2/7 Company Hua Chuang Securities, Hwabao Securities, information
New China Asset, BOC Asset Management, provided.
2023/2/8 Orient Fund, Shenwan Hongyuan Securities,
2023/2/9 CMS Asset Management, Jincan Capital,
Bosera Funds, Hwabao WP Fund, China
Post Securities, Cao Yanmei, Zheshang
Communications, Hotland Innovation Asset
Management, BlackRock, China Merchants
Fund, Sinolink Securities, Aegon-Industrial
Fund, regents capita, ICBC Credit Suisse
Fund, China Merchants Securities, CICC
Securities, Foresight Fund, Harvest Fund
2023/2/14 FOUNDER Securities, Guotai Junan,
Changjiang Pension, ZSAMC, Exodus Learn about the
2023/2/16 Conference Point, Brillian Capital, Mirae Asset, Polymer operation of the
Field Organizat http://www.cni
2023/2/20 room of the Capital, Oberweis, Jefferies, China Company; no
survey ions nfo.com.cn
2023/2/22 Company Securities, Huashang Fund, Haitong, information
Harvest Fund, CICC, Yude Capital, CIGNA provided.
2023/2/23 CMB Asset Management
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
AXA SPDB Investment Managers, TF
Securities, Caitong Fund, Samsung Asset
Management, Shinhan Asset Management,
abrdn, FY Investment, Library Group
Capital, Haitong, Dymon Asia, Rongtong
Fund, Harvest Fund, Shenzhen Qianhai
2023/2/27 Yiyang Investment, Citibank, Samsung
Investment Management (Hong Kong),
2023/2/28 Learn about the
Hinrich Foundation, HSBC Global Asset
2023/3/1 Conference operation of the
Field Organizat Management (Hong Kong), Wonderland http://www.cni
room of the Company; no
2023/3/2 survey ions International, Wobai Business Consulting nfo.com.cn
Company information
2023/3/6 (Shanghai), Heqi Investment, FountainCap
provided.
Research Investment (Hong Kong),
2023/3/9 Sumitomo Mitsui DS Asset Management
(Hong Kong), Matthews Global Investors
(Hong Kong), Manulife Investment (Hong
Kong), CICC, Hel Ved capital, GLG
Partners, Pleiad Investment, OMERS Asia,
Baopurongyi Asset Management, Tiger
Pacific
TF Securities, CITIC Securities, Huatai
Securities, Zhongtai Securities, Guosen
Securities, CICC Securities, Guotai Junan
Securities, Haitong Securities, China
Merchants Securities, Shenwan Hongyuan
Securities, Changjiang Securities, Soochow
Securities, Western Securities, Everbright
Securities, Jefferies Securities, China Galaxy
Securities, China Life Asset Management,
Greenwoods Asset Management, Sinolink
Securities, TF Securities, HFT Investment
Management, Korea Investment Trust
Management, Fullgoal Fund Management,
Shanghai Panjing Investment Center
(Limited Partnership), Harvest Fund
Management, Hengtai Securities,
HENGJIAN INTERNATIONAL
INVESTMENT HOLDING (HONG
KONG), Shenzhen Hong Ding Wealth
Management, Yimi Fund Management,
Shanghai Xitai Investment Management,
Shanghai HeDao Asset Management,
Parametrica Management Limited, Learn about the
Conference operation of the
2023/3/30 Field Organizat Neuberger Berman, First-trust Fund http://www.cni
room of the Management, HSBC Jintrust Fund Company; no
2023/3/31 survey ions nfo.com.cn
Company Management, Infore Capital Management, information
Cyber Atlas Capital, provided.
JIAXUYINGHAI(Shanghai)FUND
Management, China International Capital
Corporation Limited, Shanghai Jujin
Investment, Beijing Ruigu Investment,
Beijing Ding Investment, Goldstate
Securities, Shenzhen Gemboom Investment
Management, HSBC Jintrust Fund
Management, Zhejiang Rice Bank Asset
Management, BOC International (China),
Shanghai Stock Exchange, DH Fund
Management, Beijing Yunfeng Asset
Management, Sealand Securities, Pacific
Asset Management, Essence Securities,
Mingya Fund Management, Shanghai Chaos
Investment (Group), Taiping Asset
Management, Hengtai Securities, China
Securities, Hotland Innovation Asset
Management, Fengpei CAPITAL LLC,
Shenzhen Hong Ding Wealth Management,
Everbright Securities, Shanghai Tourmaline
Asset Management, Shanghai Foresight
Investment, Huatai-Pinebridge Fund
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Management, Hang Seng Qianhai Fund
Management, Sealand Securities, China Life
AMP Asset Management, Western
Leadbank Fund Management, Ningbo
Liansheng Asset Management, Origin Asset
Management, SINO LIFE ASSET, Regent
Capital, ShenZhen Comein Finance and
Technology, HONOUR ALLIANCE
INVESTMENTS, Shengang Securities,
Maxwealth Fund Management, Yude
Capital, Tibet YuanCheng Investment.
Shenzhen Qianhai OnlyWin Fund
Management, Deju Brothers Venture
Capital, Shenzhen New Value Capital
Management, HYWIN WEALTH
MANAGEMENT, Mingfu Fund, Mondrian,
CICC Securities, Nomura Asset
2023/4/11 Management, Capital Investment Trust Learn about the
2023/4/12 Conference Corporation, Franklin Templeton SinoAM operation of the
Field Organizat http://www.cni
room of the SIM Inc., IGWT Investment, Cathay Capital Company; no
2023/4/13 survey ions nfo.com.cn
Company Management Inc., Manulife TEDA Fund information
2023/4/14 Management, Tianhong Asset Management, provided.
Bosera Fund Management, China Life Asset
Management, Huachuang Securities,
Sinosafe Asset Management, CICC
Securities, Wellington, Neuberger Berman,
CICC Securities, NanJing Double-Safeguard
Asset Management, CICC Securities
On-line Learn about the
Flush communi operation of the
Organizat http://www.cni
2023/4/14 Roadshow cation on Performance presentation session Company; no
ions nfo.com.cn
Platform network information
platforms provided.
Guotai Asset Management, BlackRock Fund
Management, BOC Insurance, China Future
Capital Group, Guodu Securities, Beijing
Longrising Asset Management, Exodus
Point, China Merchants Securities, Shanghai
Silver Leaf Investment, Harvest Fund
Management, Beijing Ding Investment,
Shanghai Everbest Investment Managers,
Truvalue Asset Management, Sinolink
Securities, Rosefinch Fund Management,
Sinosafe Asset Management, China Life
AMP Asset Management, Shanghai Chaser
Asset Management, TF Securities, Penghua
Fund Management, Xinyuan Asset
Management, Shanghai Yude Capital
Management Center (Limited Partnership), Learn about the
Telephon
Conference operation of the
e Organizat Shanghai Lingze Asset Management, http://www.cni
2023/4/25 room of the Changzhou Boyan Ruixuan Venture Capital, Company; no
communi ions nfo.com.cn
Company Beijing Eastern Smart Rock Asset information
cation
Management, Minya Fund Management, provided.
Shenzhen Hong Ding Wealth Management,
AEGON-INDUSTRIAL Fund Management,
Shanghai Panjing Investment Center
(Limited Partnership), Pinpoint Investment
Management, Orient Securities, Hotland
Innovation Asset Management, Jt Asset
Management, Beijing Ruigu Investment,
BOC International (China), Shanghai Fuge
Investment Management, Shanghai Qinyuan
Investment Management, Dajia Asset
Management, DA CHENG FUND
MANAGEMENT, Guangzhou RUIMIN
ASSET MANAGEMENT, Guosen
Securities, Western Leadbank Fund
Management, Shanghai Yingdong Private
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Fund Management, Guangzhou Jinkong
Asset Management, Nuode Asset
Management, CCB Life Insurance Asset
Management, Shanghai Lingze Asset
Management, China Post Life Insurance,
Chongqing Derui Hengfeng Asset
Management, Zheshang Securities, Bearing
No (Shanghai) Investment Management
Center (L.P.), Taikang Pension Insurance,
Beijing Ding Investment, Fuanda Fund
Management, Shanghai Chaos Investment
(Group), Neuberger Berman, Huatai
Securities, Golden Eagle Asset
Management, Taipei Fubon Securities,
Shanghai Xitai Investment Management,
CITIC Securities, ABC Wealth
Management, Haojun Asset Management,
Regents Capital, Shengang Securities,
Guotai Junan Securities, Zheshang
Securities, China Securities, Soochow
Securities, Western Securities, Changjiang
Securities, Shenwan Hongyuan Securities,
GF Securities, Sinolink Securities, CICC
Securities, Citibank, Guosen Securities,
Huatai Securities, ZHONGTAI
SECURITIES
Citibank, Citi Private Bank, Neuberger
Learn about the
Berman, Temasek Holdings, Summit
Conference operation of the
Field Organizat Partners, ICBC International, Fullgoal Fund http://www.cni
2023/5/30 room of the Company; no
survey ions Management, Hang Seng Investment nfo.com.cn
Company information
Management, Lanzhong Investment
provided.
Management
Mondrian Investment Partners Limited,
Learn about the
Jefferies, D. E. Shaw & Co., Jefferies Hong
2023/7/19 Conference operation of the
Field Organizat Kong, Lingren Investment, Goldman Sachs http://www.cni
room of the Company; no
2023/7/20 survey ions Asset Management, Canada Pension Plan nfo.com.cn
Company information
Investment Board, Government of Singapore
provided.
Investment Corporation
Tibet Yuancheng Investment, Shanghai
Xitai Investment, Harvest Fund, Fullgoal
Fund, Zheshang Securities, Nanjing Double-
Safeguard Asset Management, Penghua
Fund, HFT Fund, BOC International
Securities, Fuanda Fund, Taiping Pension,
Ren Bridge Asset Management, Guangzhou
Yourong Management Consulting,
Changzhou Boyan Ruixuan Venture Capital
Investment, Beijing Hexin Jinchuang
Investment, Bosera Fund, Nanjing Jingheng
investment, Hainan Hengli Private
Placement, Shanghai Kingsun Investment, Learn about the
Telephon Founder Securities, Rays Capital, Shanghai
2023/8/16 Conference operation of the
e Organizat United Advance Private Placement, Aspex http://www.cni
room of the Company; no
2023/8/17 communi ions Management, Shenzhen HillView Asset nfo.com.cn
Company information
cation Management, Shanghai Tianni Investment, provided.
V. Stone Fund, HSBC Jintrust Fund,
Sinolink Securities, GH Shining Asset
Management, BlackRock Fund, Aegon-
Industrial Fund, Yinhua Fund, Zhongtai
Securities, UBS Asset Management, Bearing
No (Shanghai) Investment, Shanxi
Securities, Shenzhen Upright Asset
Management, China Life, Shenzhen Qianhai
Jumpstart Asset Management, Ren Bridge
Asset Management, Hangzhou Yirong Asset
Management, Shanghai Futurus Vessel
Private Placement, Jiyuan Investment,
Shanghai Pertrust Investment, Mingya Fund,
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
China Future Asset Management, Shanghai
Panjing Investment, Ningbo Wealth
Management, China Post Life Insurance,
Neuberger Berman, New China Asset
Management, Orient Securities, Shanghai
Hexi Private Placement, Huatai PineBridge
Fund, Geru Asset Management, CICC,
Huatai Securities, Beijing Fengpei
Investment, Shanghai Silver Leaf
Investment, Merchants Securities, China
Securities, BOSC Asset, CCB Life, SWS
MU Fund, Shanghai Trony Asset
Management, Harfor Funds, BOC
Investment Management, China Wealth
Management, Changjiang Securities, Dajia
Asset Management, Lion Fund, Shenzhen
Hongding Wealth, Chang'an International
Trust, Shanghai Dazheng Asset
Management, Xinghe Fund, Bank of
Suzhou, Yuhe Asset Management, TF
Securities, Hangzhou Honghua Investment,
Nanyin Wealth Management, CUAM,
Dacheng Fund, Shanghai Qushi, Industrial
Securities, Essence Asset Management,
Great Wall Fund, Great Wall Wealth
Insurance, Shanghai Fupei investment, JT
Fund, Huashang Fund, Sun Life Everbright
Asset Management, C.C.F. Group, CCB
Principal Asset Management, Xunyuan
Asset Management, Hengtai Securities,
Heng An Standard Life, Amundi BOC
Wealth Management, China Life AMP Asset
Management, Comein Finance, Fountain
Vest, CITIC Prudential Fund, PKUFI,
Exodus Point, Western Securities, Shengang
Securities, Xingyin Securities, Jefferies, GF
Securities, Caitong Fund, Hua Chuang
Securities, Shanghai Yinsheng Asset
Management, Changsheng Fund, First-Trust
Fund, Efunds, HZBANK Wealth
Management, Xingyin Wealth Management,
GAAM, Caitong Securities, Shanghai Yude
Capital, Springs Capital, Harvest Fund,
Merchants Securities, Southern Asset
Management, China Post Life Insurance,
Hwabao WP Fund, Horizon Asset
Management, BOCOM Schroders, JT Fund,
Jingtai Lifeng, Penghua Fund, Shanghai
River Fund, BNB Wealth Management, CIB
Wealth Management, Shanghai Yude
Capital, Beixin Ruifeng Fund, Nuode Asset
Management, China Securities, HSBC
Jintrust Fund, Hang Seng Qianhai Fund,
Focus Bridge, Shanghai Leaderway
Investment, Hel Ved, Fuanda Fund, Foresea
Life Insurance, PH Capital, Guotai Junan,
Lierda, Maxwealth Fund, Oriental Alpha
TF Securities, Xingyin Fund, Pacific
Securities Asset Management, China Post
Life Insurance, Generali China Asset
Management, Great Wall Wealth Insurance, Learn about the
Telephon Foresight Fund, Zhonghai Fund, Springs
2023/10/25 Conference operation of the
e Organizat Capital (Beijing), Shanghai Puxing Asset http://www.cni
room of the Company; no
2023/8/18 communi ions Management, Hangzhou Lequ Investment, nfo.com.cn
Company information
cation Changzhou Boyan Ruixuan Venture Capital provided.
Investment, BOC International Securities,
Chengtong Fund, Zhejiang Rice Bank Asset
Management, Harvest Fund, Hwabao WP
Fund, BoCom-Schroders Fund, Loyal Valley
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Capital, Hang Seng Qianhai Fund, Ren
Bridge Asset Management, Dymon Asia
Capital (HK) Limited, Shanghai Everbest
Investment, Batach-Sophia Assets
Management, Harfor Funds, Willing Capital
Management Limited, Shenzhen Hongding
Wealth, Aegon-Industrial Fund, Amundi
BOC Wealth Management, BOC Investment
Management, CIB Fund, Ningbo High-Flyer
Quant Investment, Allianz Insurance Asset
Management, Hwabao WP Fund,
Guangdong Zhengyuan Investment,
Hangzhou Honghua Investment, Shanghai
Silver Leaf Investment, Shanghai Panjing
Investment, Guangdong Huizheng Private
Equity, Ping An Fund, Century Securities,
Guangdong Cherami Chenyang Private
Equity, Pacific Asset Management,
BlackRock Fund, Taikang Asset
Management, Exodus Point, Beijing Fengrui
Asset Management, HFT Fund, New China
Asset Management, Penghua Fund, Southern
Asset Management, HFT Fund, CITIC
Capital (Shenzhen) Investment, Shenzhen
Qianhai Jumpstart Asset Management,
Founder Securities, Beijing Chengyang
Investment, Guotai Junan, Invesco Great
Wall Fund, Shanghai Fosun, Beijing Hexin
Jinchuang Investment, Great Wall Fund,
Regents Capital, China Post Life Insurance,
Harvest Fund
XIII. Implementation of the action plan for "double improvement of quality and return"
Did the Company disclose the action plan for "double improvement of quality and return"?
□ Yes No
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Section IV Corporate Governance
I. Basic status of corporate governance
Since its listing, the Company has always adhered to standardized governance, strictly followed the
requirements of relevant laws and regulations, formulated a series of internal corporate governance systems, and
established a governance structure of the General Meeting of Shareholders, the Board of Directors and its
special committees, the Board of Supervisors and management level in accordance with the law to respectively
exercise decision-making power, executive power, supervisory power and operating responsibilities, ensuring
the Company's efficient operation with a multi-level governance system with clear powers and responsibilities.
Through the implementation of the Articles of Association and various internal systems, the Company has
defined the responsibilities, powers, procedures and obligations of organizations at all levels in terms of
decision-making, execution and supervision.
Shareholders and the General Meeting of Shareholders: The Company strictly follows the provisions
and requirements of laws and regulations such as the Company Law, the Securities Law, the Rules of Procedure
for the General Meeting of Shareholders and the Rules of Procedure for the General Meeting of Shareholders of
Listed Companies, and continually improves the standardized operation of the Company's General Meeting of
Shareholders. During the Reporting Period, the Company held a total of 4 general meetings of shareholders
(including the Annual General Meeting of Shareholders for 2022), deliberated 32 proposals, and organized
votes on all of them through a combination of on-site and online voting methods; during the deliberation of each
proposal, the Company separately counted votes on matters affecting the interests of minority shareholders, and
specially provided dialog sessions between participating shareholders and the Company's directors, supervisors
and senior executives to fully ensure that all shareholders and especially minority shareholders enjoy equal
status and fully exercise their rights.
Relationship between the controlling shareholder and the listed company: The controlling shareholder
regulates his behavior in strict accordance with the Securities Law, the Code of Governance for Listed
Companies and other laws and regulations as well as the Articles of Association, and can exercise his rights and
assume corresponding obligations in accordance with the law. The controlling shareholder of the Company is an
individual who does not have other investment projects and has not directly or indirectly intervened in the
Company's decision-making and operating activities beyond the Company's General Meeting of Shareholders.
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Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
The Board of Directors, Board of Supervisors and corresponding departments of the Company can operate
normally and have independence.
Directors and the Board of Directors: All directors of the Company can carry out their work in
accordance with laws and regulations such as the Rules of Procedure for the Board of Directors and the
Management Measures for Independent Directors of Listed Companies, attend relevant meetings seriously,
actively participate in training, and familiarize themselves with relevant laws and regulations. The Company's
Board of Directors has set up a Strategy Committee, an Audit Committee, a Salary and Assessment
Committee and a Nomination Committee as well as a mechanism of special meetings of independent directors,
and each committee performs its duties in strict accordance with the relevant laws and regulations and rules of
procedure, providing complementary information for the scientific decision-making of the Board of Directors.
During the Reporting Period, the term of the Company's 7th Board of Directors expired. After deliberation by
the General Meeting of Shareholders and the Congress of Workers and Staff, the number of members of the
Board of Directors was adjusted from 9 to 7. Re-elected members of the Board of Directors consist of 3
independent directors and 4 non-independent directors, including 2 directors on behalf of workers and staff. The
composition of the Board of Directors complies with the requirements of laws and regulations and the
Company's Articles of Association.
Supervisors and the Board of Supervisors: The formation of the Company's Board of Supervisors
strictly follows the relevant provisions of the Company Law, the Articles of Association, etc. The Board of
Supervisors consists of three supervisors. During the Reporting Period, members of the 8th Board of
Supervisors were re-elected after deliberation by the General Meeting of Shareholders and the Congress of
Workers and Staff, including one supervisor on behalf of workers and staff. The Company's supervisors and
Board of Supervisors can conscientiously perform their duties in accordance with the requirements of the Rules
of Procedure for the Board of Supervisors, review the Company's regular reports, progress in the use of raised
funds, connected transactions, equity incentives and other matters and provide written review opinions,
supervise directors and senior executives in performing their corporate duties, and safeguard the legitimate
rights and interests of the Company and shareholders.
Performance evaluation and incentive and restraint mechanism: The Company has established a series
of performance evaluation and incentive and restraint mechanisms, which are open and transparent in the
appointment of senior executives and in accordance with relevant laws and regulations.
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Relevant stakeholders: The Company can fully respect and safeguard the legitimate rights and interests of
relevant stakeholders, and actively cooperate with stakeholders to jointly promote the sustainable and healthy
development of the Company.
Information disclosure and transparency: The Company conscientiously performs the obligation of
information disclosure in accordance with the relevant provisions of laws and regulations such as the Articles of
Association, the Stock Listing Rules of Shenzhen Stock Exchange and the Management Measures for
Information Disclosure of Listed Companies. The Company has designated Securities Times and the CNINFO
as the newspaper and website for its information disclosure to ensure timely and accurate disclosure of company
information.
Is there any significant difference between the actual situation of corporate governance and laws, administrative
regulations and the regulations on corporate governance of listed companies issued by the CSRC?
□ Yes No
There is no significant difference between the actual situation of corporate governance and laws, administrative
regulations and the regulations on corporate governance of listed companies issued by the CSRC.
II. The independence of the Company relative to its controlling shareholder and actual
controller in ensuring the Company's assets, personnel, finance, organizations, business and
other aspects
The controlling shareholder of the Company is a natural person and has no other investments. The
Company is completely separated from its controlling shareholder in terms of business, personnel, assets,
finance, etc. The Company's production and operation are stable and can operate independently and in a
standardized manner.
1. Business independence: The Company's business is independent of its controlling shareholder, and the
Company has a complete and independent production, supply and sales system, without relying on shareholders
or any other related party.
2. Personnel independence: The Company has an independent workforce and has established a sound
personnel management system. The Chairman, President, Vice President, Secretary of the Board of Directors,
Chief Financial Director and other senior executives of the Company work full-time in the Company and
receive remuneration. They have not held any positions other than directors or supervisors in shareholder
entities holding more than 5% of the Company's equity and their subsidiaries, nor have they held any positions
in other companies with the same or similar business as the Company. Independent personnel management.
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3. Asset independence: The Company has independent production and business premises, production
systems, supporting facilities, land usage rights and property ownership, and does not share them with the
controlling shareholder.
4. Organizational independence: The Company has established a sound organizational system that can
operate independently. There is no subordinate relationship with the controlling shareholder.
5. Financial independence: The Company has set up an independent financial accounting department and
established independent accounting system and financial management system, and independently carries out
financial operations according to the requirements of the relevant accounting system. The Company has
separate bank accounts, and conducts independent tax declaration and performs payment obligations according
to law.
III. Competition in the same industry
□ Applicable Not applicable
IV. Information on the Annual and Extraordinary General Meeting of Shareholders held
during the Reporting Period
1. Information on the General Meeting of Shareholders during the Reporting Period
Meeting Investor Meeting Date of
Meeting type Meeting resolution
session participation ratio date disclosure
1. Deliberated and passed the Proposal on 2022
Annual Report and Abstract;
2. Deliberated and passed the Proposal on 2022
Final Financial Report;
3. Deliberated and passed the Proposal on 2022
Profit Distribution Plan;
4. Deliberated and passed the Proposal on
Formulating the Shareholders' Dividend Plan for
the Next Three Years (2023-2025) of Shenzhen
Topband Co. Ltd.;
5. Deliberated and passed the Proposal on 2022
Work Report of the Board of Directors;
2022 Annual Annual
General General 6. Deliberated and passed the Proposal on 2022
25.27% 2023/04/21/ 2023/04/22/ Work Report of the Board of Supervisors;
Meeting of Meeting of
Shareholders Shareholders 7. Deliberated and passed the Proposal on
Remuneration of Company Directors in 2022;
8. Deliberated and passed the Proposal on
Remuneration of Company Supervisors in 2022;
9. Deliberated and passed the Proposal on
Repurchase and Cancellation of Some
Restricted Stocks from Restricted Stock
Incentive Plan in 2021;
10. Deliberated and passed the Proposal on
Application for Comprehensive Credit Line
from Banks by the Company and Its
Subsidiaries in 2023;
11. Deliberated and passed the Proposal on
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Renewing the Employment of Audit Institution
in 2023.
The 1st
Extraordinary Extraordinary
1. Deliberated and passed the Proposal on
General General
24.12% 2023/06/21/ 2023/06/22/ Increasing the Company's Business Scope and
Meeting of Meeting of
Amending the Articles of Associations.
Shareholders Shareholders
in 2023
1. Deliberated and passed the Proposal on the
General Election of Non-independent Directors
for the Board of Directors;
2. Deliberated and passed the Proposal on the
General Election of Independent Directors for
the Board of Directors item by item;
2.01 Elected Mr. Li Xumeng as an independent
director of the 8th Board of Directors
2.02
Elected Mr. Chen Zhengxu as an independent
director of the 8th Board of Directors
2.03
Elected Mr. Qin Wei as an independent director
of the 8th Board of Directors
3. Deliberated and passed the Proposal on the
General Election for the Corporate Board of
Supervisors item by item;
3.01
Elected Ms. Dai Huijuan as a supervisor of the
8th Board of Supervisors
3.02
Elected Mr. Kang Weiquan as a supervisor of
the 8th Board of Supervisors
The 2nd 4. Deliberated and passed the Proposal on
Extraordinary Extraordinary Changing the Use of Part of the Raised Funds
General General and Permanently Supplementing Working
23.08% 2023/09/26/ 2023/09/27/ Capital;
Meeting of Meeting of
Shareholders Shareholders 5. Deliberated and passed the Proposal on
in 2023 Repurchase and Cancellation of Some
Restricted Stocks from Restricted Stock
Incentive Plan in 2021;
6. Deliberated and passed the Proposal on
Amending the Articles of Association;
7. Deliberated and passed the Proposal on
Amending the Rules of Procedure for the
General Meeting of Shareholders;
8. Deliberated and passed the Proposal on
Amending the Rules of Procedure for the Board
of Directors;
9. Deliberated and passed the Proposal on
Amending the Rules of Procedure for the Board
of Supervisors;
10. Deliberated and passed the Proposal on
Amending the Rules of Procedure for the Audit
Committee of the Board of Directors;
11. Deliberated and passed the Proposal on
Amending the Rules of Procedure for the
Nomination Committee of the Board of
Directors;
12. Deliberated and passed the Proposal on
Amending the Rules of Procedure for the
Salary and Assessment Committee of the Board
of Directors;
13. Deliberated and passed the Proposal on
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Amending the Rules of Procedure for the
Strategy Committee of the Board of Directors;
14. Deliberated and passed the Proposal on
Amending the Remuneration Management
System for Directors, Supervisors and Senior
Executives;
15. Deliberated and passed the Proposal on
Amending the Management Measures for the
Shares of the Company Held by Directors,
Supervisors and Senior Executives and Changes
Therein;
16. Deliberated and passed the Proposal on
Amending the Management Measures for
Raised Funds;
17. Deliberated and passed the Proposal on
Amending the External Guarantee Management
System;
18. Deliberated and passed the Proposal on
Amending the Related-party Transaction
Management System;
19. Deliberated and passed the Proposal on
Reviewing Allowances for Independent
Directors;
The 3rd
Extraordinary Extraordinary 1. Deliberated and passed the Proposal on
General General Terminating the Implementation of the
19.83% 2023/12/18/ 2023/12/19/
Meeting of Meeting of Restricted Stock Incentive Plan for 2021 and
Shareholders Shareholders Repurchasing and Cancelling Restricted Stocks.
in 2023
2. The preferred shareholders with restored voting rights request to convene an Extraordinary General
Meeting of Shareholders
□ Applicable Not applicable
V. Directors, supervisors and senior executives
1. Basic situation
Number of Number Other
Number of
additional of shares changes Number of Reasons for
shares held
Starting date Ending date shares held reduced in shares held share
Position at the
Name Gender Age Position of term of of term of in the in the increase at the end of changes in
status beginning of
office office current current or the period increase or
the period
period period decrease (shares) decrease
(shares)
(shares) (shares) (shares)
Chairman
Wu Not
Male 59 and Incumbent 2011/08/29/ 2026/09/25/ 212,008,715 0 0 0 212,008,715
Yongqiang applicable
President
Not
Ji Shuhai Male 62 Director Outgoing 2011/08/29/ 2023/09/26/ 27,318,642 0 0 0 27,318,642
applicable
Director and
Zheng Not
Male 58 Vice Incumbent 2011/08/29/ 2026/09/25/ 6,336,970 0 0 0 6,336,970
Sibin applicable
President
Director and
Not
Ma Wei Male 50 Vice Incumbent 2011/08/29/ 2026/09/25/ 8,950,934 0 0 0 8,950,934
applicable
President
Peng Not
Male 52 Director Incumbent 2011/08/29/ 2026/09/25/ 5,136,900 0 0 0 5,136,900
Ganquan applicable
Not
Wu Hang Male 40 Director Outgoing 2014/09/12/ 2023/09/26/ 0 0 0 0 0
applicable
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Huang Independent Not
Male 66 Outgoing 2020/09/14/ 2023/09/26/ 0 0 0 0 0
Yuegang director applicable
Hua Independent Not
Female 46 Outgoing 2017/09/09/ 2023/09/26/ 0 0 0 0 0
Xiuping director applicable
Independent Not
Li Xumeng Male 58 Incumbent 2021/03/31/ 2026/09/25/ 0 0 0 0 0
director applicable
Vice
President
Wen and Not
Female 50 Incumbent 2011/08/29/ 2026/09/25/ 2,771,127 0 0 0 2,771,127
Zhaohui Secretary of applicable
the Board of
Directors
The senior
executives
reduced their
holding by
80,000 shares
according to
the disclosed
holding
reduction
plan, and
continued to
reduce their
holding by
30,000 shares
six months
after leaving
office; at the
same time,
Chief
the Company
Xiang Wei Male 47 Financial Outgoing 2019/01/10/ 2023/05/30/ 764,500 0 238,100 0 526,400
repurchased
Director
and canceled
128,100
shares in
accordance
with the
Management
Measures for
Equity
Incentives of
Listed
Companies
and the
Restricted
Stock
Incentive
Plan for 2021
(Revised
Draft).
Dai Not
Female 48 Supervisor Incumbent 2011/08/29/ 2026/09/25/ 319,612 0 0 0 319,612
Huijuan applicable
Kang Not
Male 40 Supervisor Incumbent 2014/08/21/ 2026/09/25/ 0 0 0 0 0
Weiquan applicable
Chen Not
Male 46 Supervisor Incumbent 2017/02/15/ 2026/09/25/ 0 0 0 0 0
Jinzhou applicable
Chief
Luo Not
Male 41 Financial Incumbent 2023/05/30/ 2026/09/25/ 50,000 0 0 50,000
Muchen applicable
Director
Chen Independent Not
Male 56 Incumbent 2023/09/26/ 2026/09/25/ 0 0 0 0
Zhengxu director applicable
Independent Not
Qin Wei Male 45 Incumbent 2023/09/26/ 2026/09/25/ 0 0 0 0
director applicable
Total -- -- -- -- -- -- 263,657,400 0 238,100 263,419,300--
Is there any resignation of directors and supervisors during their term of office and dismissal of senior
executives during the Reporting Period?
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Yes □ No
During the Reporting Period, Mr. Xiang Wei, the Chief Financial Director of the Company, applied to
resign as the Chief Financial Director due to personal reasons. After his resignation, Mr. Xiang Wei no longer
held any position in the Company and its subsidiaries; the directors Mr. Ji Shuhai and Mr. Wu Hang and the
independent directors Mr. Huang Yuegang and Ms. Hua Xiuping left office due to the expiration of their term
of office, and they no longer held other positions in the Company and its subsidiaries after their resignation.
Changes in directors, supervisors and senior executives
Applicable □ Not applicable
Name Position Type Date Reason
Resigned upon the expiration of Resigned upon the expiration
Ji Shuhai Director 2023/09/26/
the term of office of the term of office
Resigned upon the expiration of Resigned upon the expiration
Wu Hang Director 2023/09/26/
the term of office of the term of office
Huang Resigned upon the expiration of Resigned upon the expiration
Independent director 2023/09/26/
Yuegang the term of office of the term of office
Resigned upon the expiration of Resigned upon the expiration
Hua Xiuping Independent director 2023/09/26/
the term of office of the term of office
Resigned due to personal
Xiang Wei Chief Financial Director Outgoing 2023/05/30/
reasons
Luo Muchen Chief Financial Director Appointment 2023/05/30/ Newly appointed
Wu Yongqiang Chairman and President Elected 2023/09/26/ General election
Peng Ganquan Director Elected 2023/09/26/ General election
Director on behalf of workers
Zheng Sibin Elected 2023/09/26/ General election
and staff, Vice President
Director on behalf of workers
Ma Wei Elected 2023/09/26/ General election
and staff, Vice President
Li Xumeng Independent director Elected 2023/09/26/ General election
Chen Zhengxu Independent director Elected 2023/09/26/ General election
Qin Wei Independent director Elected 2023/09/26/ General election
2. Employment status
Educational background, main working experience and major responsibilities of existing directors, supervisors
and senior executives of the Company
(I) Members of the Board of Directors
Wu Yongqiang, male, born in 1965, holds a master's degree and has no right of permanent residency
abroad. He is a local leading talent recognized by Shenzhen City. He won the honors of "Shenzhen Young
Science and Technology Leader" awarded by Shenzhen Municipal Government, "One of Top Ten Outstanding
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Young People" in Nanshan District, Shenzhen, and "Shenzhen Industrial Award". He successively served as a
lecturer of Harbin Institute of Technology and vice Chairman of the Company. Now he serves as Chairman of
the Board of Directors of the Company, Chairman of the Board of Directors of Shenzhen Topband Software
Technology Co., Ltd., executive director of Shenzhen Topband Battery Co., Ltd., executive director of
Shenzhen Hongru Investment Management Co., Ltd., a partner of Shenzhen Hongru Investment Enterprise
(Limited Partnership), executive director and President of Shenzhen Yankai Electric Technology Co., Ltd.,
executive director and President of Ningbo Topband Intelligent Control Co., Ltd., executive director of
Shenzhen Topband Automation Technology Co., Ltd., Chairman of the Board of Directors of Shenzhen YAKO
Automation Technology Co., Ltd., and a director of Topband (Hong Kong) Co., Ltd.
Zheng Sibin, male, born in 1966, holds a master's degree and is an accountant without permanent
residency abroad. He served as office director and vice factory director of Zhejiang Songyang Brewery, and
finance supervisor, manager of Finance Department and Chief Financial Director of Nam Tai Electronics
(Shenzhen) Co., Ltd. He is now a director, Vice President and President of business units of the Company, a
supervisor of Shenzhen Topband Software Technology Co., Ltd., and a supervisor of Chongqing Topband
Industrial Co., Ltd.
Ma Wei, male, born in 1974, holds a bachelor's degree without permanent residency abroad. He served as
a technical development engineer and President of Shenzhen Huafa Electronics Co., Ltd. He is now a director,
Vice President and President of business units of the Company.
Peng Ganquan, male, born in 1972, holds a master's degree without permanent residency abroad. He
served as an engineer, development engineer of the electrical business unit, technical director and Vice
President of Hunan Instrument and Meter Factory. He is now a director and President of business units of the
Company, President and executive director of Shenzhen Allied Control System Co., Ltd., President of Shenzhen
Topband Automotive Electronics Co., Ltd., and a director of TOPBAND INDIA PRIVATE LIMITED.
Li Xumeng, male, born in 1966, Chinese, holds a doctor's degree in business management without
permanent residency abroad. He served as a consultant of Beijing Shangheng Zhiben Consulting Co., Ltd. and a
consultant of Shanghai Danfu Business Consulting Center. He is now a researcher of Zhuoyuehui Innovation
and Development (Shenzhen) Co., Ltd., a partner of Beijing Danfu Investment Management Center (General
Partnership), and an independent director of the Company.
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Chen Zhengxu, male, born in 1968, Chinese, is a PhD student without permanent residency abroad. He
served as managing director of the investment banking department of Qilu Securities and Hongyuan Securities,
an off-campus supervisor of master's degree programs of School of Economics, Shenzhen University and
Department of Finance, Shanghai Normal University, an independent director of Shenzhen Kingdom
Technology Co., Ltd., and an independent director of Shenzhen BTR New Energy and Materials Co., Ltd. Now
he is executive director and President of Shenzhen Dingfeng Mingdao Asset Management Co., Ltd., a director
of Beijing Smartlink Microchip Co., Ltd., executive director and President of Shenzhen Pumao Culture and Art
Co., Ltd., executive partner of Shenzhen Daoxiang Investment Partnership (Limited Partnership), manager of
Shenzhen Mingxin Venture Capital Investment Partnership (Limited Partnership), manager of Shenzhen
Ming'ao Sensing Technology Venture Capital Investment Partnership (Limited Partnership), President of
Shenzhen Mingdao Dandelion Venture Capital Investment Partnership (Limited Partnership), head of Shenzhen
Daoxin Venture Capital Investment Partnership (Limited Partnership), and an independent director of the
Company.
Qin Wei, male, born in 1979, Chinese, holds a bachelor's degree in engineering and a master's degree in
economics without permanent residency abroad. Mr. Qin Wei is a non-practicing member of the Chinese
Institute of Certified Public Accountants. He served as a senior credit analyst of Shenzhen China Chengxin
Credit Management Co., Ltd., a business director of Huatai United Securities Co., Ltd., managing director of
Topsperity Securities Co., Ltd., and managing director of Yingda Securities Co., Ltd. Now he is a director of
Shenzhen Taotao Technology Co., Ltd., a director of Shenzhen Pallet Sharing Technology Co., Ltd., a director
of Acecamel Technology (Shenzhen) Co., Ltd., a director of Shenzhen Qicai Xiangyun Information Technology
Co., Ltd., a director of Shenzhen Hisham Technology Co., Ltd., a director of Yacovia (Guangdong) Optical
Technology Co., Ltd., a director of Shenzhen Hainav Sensor Technology Co., Ltd., executive director and
President of Shenzhen Taiya Dingfu Investment Consulting Co., Ltd., a founding partner of Xiamen Taiya
Dingfu Investment Management Co., Ltd., a partner of Xiamen Taiya Innovation Equity Investment Partnership
(Limited Partnership), an independent director of Shenzhen Fenda Technology Co., Ltd., and an independent
director of the Company.
(II) Members of the Board of Supervisors
Dai Huijuan, female, born in 1976, holds a bachelor's degree without permanent residency abroad. She
successively served as supervisor and manager of the Company's human resources department. Now she serves
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as chairwoman of the Board of Supervisors and director of the human resources center of the Company, a
director and President of Huizhou Topband Electrical Technology Co., Ltd., and a partner of Shenzhen Hongru
Investment Enterprise (Limited Partnership).
Chen Jinzhou, male, born in 1978, a permanent resident of Hong Kong, China, holds a doctor's degree
from the Chinese University of Hong Kong. He used to be an electronic engineer at Hong Kong Productivity
Council, a senior researcher at Beijing Noitom Technology Ltd., and a senior chief engineer at Johnson Electric.
Now he serves as Vice President of the microelectronics business unit and supervisor of the Company.
Kang Weiquan, male, born in 1984, holds a bachelor's degree without permanent residency abroad. He
used to be a cost accountant at Shenzhen EVA Precision Industry Holdings Limited. Now he serves as a cost
accountant and supervisor on behalf of workers and staff of the Company.
(III) Senior executives
Wu Yongqiang, the President, is detailed in the resume of members of the Board of Directors.
Zheng Sibin, the Vice President, is detailed in the resume of members of the Board of Directors.
Ma Wei, the Vice President, is detailed in the resume of members of the Board of Directors.
Wen Zhaohui, female, born in 1974, holds a bachelor's degree and is an accountant without permanent
residency abroad. She used to be the head of Finance Department, manager of Finance Department and Chief
Financial Director of Shenzhen Topband Co., Ltd., a director of Shenzhen Dynanonic Co., Ltd., and a director
of Shenzhen Zhongzhiyingke Electrical Technology Co., Ltd. She is now the Vice President and Secretary of
the Board of Directors of the Company. Ms. Wen Zhaohui was honored as "New Fortune Golden Secretary" for
five consecutive years. She won the titles of "Excellent Secretary" awarded by Shenzhen Securities Regulatory
Bureau and "Securities Times Top 100 Board Secretaries" in 2015, 2016 and 2017, and was selected into "New
Fortune Hall of Fame of Golden Secretaries in 2019".
Luo Muchen, male, born in 1983, holds a bachelor's degree and is an accountant without permanent
residency abroad. He served as an audit project manager of Shenzhen Branch of Ruihua Certified Public
Accountants, and the report supervisor and financial manager of Shenzhen Topband Co., Ltd. Now he is the
director of the Company's finance center.
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Employment in shareholder entity
□ Applicable Not applicable
Employment in other entities
Applicable □ Not applicable
Receive
Ending remuneration
Starting date
Incumbent's Position taken in date of and
Name of another entity of term of
name another entity term of allowances
office
office from another
entity?
Shenzhen Topband Software Technology
Wu Yongqiang Executive director 2014/09/18/ No
Co., Ltd.
Executive director and
Wu Yongqiang Shenzhen Topband Battery Co., Ltd. 2009/04/29/ No
President
Shenzhen Hongru Investment Management Executive (managing)
Wu Yongqiang 2015/08/20/ No
Co., Ltd. director
Shenzhen Hongru Investment Enterprise
Wu Yongqiang Partner 2015/09/02/ No
(Limited Partnership)
Shenzhen YAKO Automation Technology
Wu Yongqiang Chairman 2022/12/24/ No
Co., Ltd.
Shenzhen Topband Automation Technology
Wu Yongqiang Executive director 2016/11/24/ No
Co., Ltd.
Shenzhen Yankai Electric Technology Co., Executive director and
Wu Yongqiang 2019/05/05/ No
Ltd. President
Topband (Qingdao) Intelligent Control Co., Executive director and
Wu Yongqiang 2021/03/29/ No
Ltd. manager
Ningbo Topband Intelligent Control Co., Executive director and
Wu Yongqiang 2017/08/28/ No
Ltd. President
Executive director and
Peng Ganquan Shenzhen Allied Control System Co., Ltd. 2016/12/20/ No
President
Shenzhen Topband Automotive Electronics
Peng Ganquan President 2021/09/07/ No
Co., Ltd.
Peng Ganquan TOPBAND INDIA PRIVATE LIMITED Director 2015/12/11/ No
Shenzhen Topband Software Technology
Zheng Sibin Supervisor 2004/02/26/ No
Co., Ltd.
Zheng Sibin Chongqing Topband Industrial Co., Ltd. Supervisor 2008/03/12/ No
Zhuoyuehui Innovation and Development
Li Xumeng Researcher 2018/06/01/ Yes
(Shenzhen) Co., Ltd.
Beijing Danfu Investment Management
Li Xumeng Partner 2015/06/08/ No
Center (General Partnership)
Shenzhen Dingfeng Mingdao Asset Executive director and
Chen Zhengxu 2014/08/25/ Yes
Management Co., Ltd. President
Chen Zhengxu Beijing Smartlink Microchip Co., Ltd. Director 2017/12/21/ No
Executive director and
Chen Zhengxu Shenzhen Pumao Culture and Art Co., Ltd. 2019/06/13/ No
President
Shenzhen Daoxiang Investment Partnership
Chen Zhengxu Executive partner 2019/06/14/ No
(Limited Partnership)
Shenzhen Mingxin Venture Capital
Chen Zhengxu Investment Partnership (Limited Manager 2021/12/20/ No
Partnership)
Shenzhen Ming'ao Sensing Technology
Chen Zhengxu Venture Capital Investment Partnership Manager 2023/04/07/ No
(Limited Partnership)
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Shenzhen Mingdao Dandelion Venture
Chen Zhengxu Capital Investment Partnership (Limited President 2023/02/28/ No
Partnership)
Shenzhen Daoxin Venture Capital
Chen Zhengxu Investment Partnership (Limited Head 2022/06/17/ No
Partnership)
Qin Wei Shenzhen Taotao Technology Co., Ltd. Director 2021/03/29/ No
Shenzhen Pallet Sharing Technology Co.,
Qin Wei Director 2021/01/19/ No
Ltd.
Qin Wei Acecamel Technology (Shenzhen) Co., Ltd. Director 2021/05/12/ No
Shenzhen Qicai Xiangyun Information
Qin Wei Director 2021/10/28/ No
Technology Co., Ltd.
Qin Wei Shenzhen Hisham Technology Co., Ltd. Director 2023/08/03/ No
Yacovia (Guangdong) Optical Technology
Qin Wei Director 2020/08/10/ No
Co., Ltd.
Shenzhen Hainav Sensor Technology Co.,
Qin Wei Director 2020/12/23/ No
Ltd.
Shenzhen Taiya Dingfu Investment Executive director and
Qin Wei 2022/10/26/ No
Consulting Co., Ltd. President
Xiamen Taiya Dingfu Investment
Qin Wei Founding partner 2016/05/16/ Yes
Management Co., Ltd.
Xiamen Taiya Innovation Equity Investment
Qin Wei Partner 2019/12/18/ No
Partnership (Limited Partnership)
Qin Wei Shenzhen Fenda Technology Co., Ltd. Independent director 2022/08/22/ Yes
Huizhou Topband Electrical Technology Executive director and
Dai Huijuan 2011/11/14/ No
Co., Ltd. President
Shenzhen Topband Automotive Electronics
Dai Huijuan Supervisor 2021/09/07/ No
Co., Ltd.
Explanation of
employment in None
other entities
Punishment imposed by securities regulators in the past three years on the Company's directors, supervisors and
senior executives currently in office and left office during the Reporting Period
□ Applicable Not applicable
3. Remuneration for directors, supervisors and senior executives
Decision-making procedure, confirmation basis and actual payment of remuneration for directors,
supervisors and senior executives
1. Decision-making procedure and confirmation basis of remuneration: The remuneration of the
Company's directors, supervisors and senior executives shall be paid according to the Remuneration
Management System for Directors, Supervisors and Senior Executives deliberated and passed by the General
Meeting of Shareholders. The Salary and Assessment Committee shall formulate a remuneration plan for
directors and submit it to the Board of Directors for review and approval by the General Meeting of
Shareholders.
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2. The Remuneration Management System for Directors, Supervisors and Senior Executives revised at the
2nd Extraordinary General Meeting of Shareholders for 2023 held on September 26, 2023 and the Proposal on
Reviewing Allowances for Independent Directors deliberated at the 2nd Extraordinary General Meeting of
Shareholders for 2023 stipulate that, the allowance for independent directors of the Company is RMB 84,000
(before tax) per year, which will be paid according to their duration of service and relevant regulations. The
Company shall be responsible for the travel expenses of the independent directors who attend the Board of
Directors and the General Meeting of Shareholders and the expenses required for the exercise of their functions
and powers according to the Articles of Association of the Company
Remuneration for directors, supervisors and senior executives in the Reporting Period
Unit: RMB ten thousand
Received
Total pre-tax
remuneration
remuneration
Name Gender Age Position Position status from related
received from
parties of the
the Company
Company
Wu Yongqiang Male 59 Chairman and President Incumbent 165.62 No
Ji Shuhai Male 62 Director Outgoing 6.3 No
Zheng Sibin Male 58 Director and Vice President Incumbent 285.45 No
Ma Wei Male 50 Director and Vice President Incumbent 267.63 No
Peng Ganquan Male 52 Director Incumbent 243.76 No
Wu Hang Male 40 Director Outgoing 6.3 No
Huang
Male 66 Independent director Outgoing 6.3 No
Yuegang
Hua Xiuping Female 46 Independent director Outgoing 6.3 No
Li Xumeng Male 58 Independent director Incumbent 8.4 No
Vice President and Secretary of
Wen Zhaohui Female 50 Incumbent 92.31 No
the Board of Directors
Xiang Wei Male 47 Chief Financial Director Outgoing 41.43 No
Dai Huijuan Female 48 Supervisor Incumbent 96.12 No
Kang Weiquan Male 40 Supervisor Incumbent 43.98 No
Chen Jinzhou Male 46 Supervisor Incumbent 93.83 No
Luo Muchen Male 41 Chief Financial Director Incumbent 58.43 No
Chen Zhengxu Male 56 Independent director Incumbent 2.1 No
Qin Wei Male 45 Independent director Incumbent 2.1 No
Total -- -- -- -- 1,426.36 --
Explanation of other situations
□ Applicable Not applicable
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VI. Directors' performance of duties during the Reporting Period
1. Information on the Board of Directors during the Reporting Period
Date of
Meeting session Meeting date Meeting resolution
disclosure
The 31st 1. Deliberated and passed the Proposal on Carrying out Forward Foreign
Meeting of the Exchange Trading Business;
2023/01/12/ 2023/01/14/
7th Board of 2. Deliberated and passed the Proposal on Signing a Procurement Framework
Directors Agreement with Shenzhen Jizhiguang Electronics Co., Ltd.
1. Deliberated and passed the Proposal on Annual Report 2022 and Its Abstract;
2. Deliberated and passed the Proposal on 2022 Work Report of the Board of
Directors;
3. Deliberated and passed the Proposal on 2022 Work Report of the President;
4. Deliberated and passed the Proposal on 2022 Final Financial Report;
5. Deliberated and passed the Proposal on 2022 Profit Distribution Plan;
6. Deliberated and passed the Proposal on Formulating the Shareholders'
Dividend Plan for the Next Three Years (2023-2025) of Shenzhen Topband Co.
Ltd.;
7. Deliberated and passed the Proposal on 2022 Internal Control Evaluation
Report;
8. Deliberated and passed the Proposal on Remuneration of Company Directors
in 2022;
9. Deliberated and passed the Proposal on the Remuneration of Senior
Executives of the Company in 2022;
10. Deliberated and passed the Proposal on the Special Report on the Deposit
The 32nd
and Use of Raised Funds in 2022;
Meeting of the
2023/03/29/ 2023/03/31/ 11. Deliberated and passed the Proposal on Fulfillment of Restricted Share
7th Board of
Directors Release Conditions for 2021 Restricted Stock Incentive Plan after the First
Restricted Stock Trade Period;
12. Deliberated and passed the Proposal on Repurchase and Cancellation of
Some Restricted Stocks from Restricted Stock Incentive Plan in 2021;
13. Deliberated and passed the Proposal on Cash Management with Some Idle
Raised Capitals and Self-own Funds;
14. Deliberated and passed the Proposal on Application for Comprehensive
Credit Line from Banks by the Company and Its Subsidiaries in 2023;
15. Deliberated and passed the Proposal on Renewing the Employment of Audit
Institution in 2023.
16. Deliberated and passed the Proposal on the 2022 ESG and Social
Responsibility Report;
17. Deliberated and passed the Proposal on Provision for Asset Impairment in
2022;
18. Deliberated and passed the Proposal on Accounting Policy Changes;
19. Deliberated and passed the Proposal on Convening the 2022 Annual General
Meeting of Shareholders.
The 33rd 1. Deliberated and passed the Proposal on the First Quarter Report in 2023;
Meeting of the
2023/04/25/ 2023/04/26/ 2. Deliberated and passed the Proposal on Adjusting the Repurchase Price in the
7th Board of
Directors 2021 Restricted Stock Incentive Plan.
The 34th
(Extraordinary)
1. Deliberated and passed the Proposal on the Appointment of the Company's
Meeting of the 2023/05/30/ 2023/05/31/
Chief Financial Officer.
7th Board of
Directors
The 35th 1. Deliberated and passed the Proposal on Increasing the Company's Business
(Extraordinary) Scope and Amending the Articles of Associations;
Meeting of the 2023/06/04/ 2023/06/05/
7th Board of 2. Deliberated and passed the Proposal on Convening the 1st Extraordinary
Directors General Meeting of Shareholders in 2023.
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The 36th 1. Deliberated and passed the Proposal on Semi-annual Report 2023 and Its
Meeting of the Abstract;
2023/08/15/ 2023/08/17/
7th Board of 2. Deliberated and passed the Proposal on the Special Report on the Deposit and
Directors Use of Raised Funds in the Half Year of 2023;
1. Deliberated and passed the Proposal on the General Election of Non-
independent Directors for the Board of Directors;
2. Deliberated and passed the Proposal on the General Election of Independent
Directors for the Board of Directors;
3. Deliberated and passed the Proposal on Changing the Use of Part of the
Raised Funds and Permanently Supplementing Working Capital;
4. Deliberated and passed the Proposal on Repurchase and Cancellation of Some
Restricted Stocks from Restricted Stock Incentive Plan in 2021;
5. Deliberated and passed the Proposal on Amending the Articles of Association;
6. Deliberated and passed the Proposal on Amending the Rules of Procedure for
the General Meeting of Shareholders;
7. Deliberated and passed the Proposal on Amending the Rules of Procedure for
the Board of Directors;
8. Deliberated and passed the Proposal on Amending the Rules of Procedure for
the Audit Committee of the Board of Directors;
9. Deliberated and passed the Proposal on Amending the Rules of Procedure for
the Nomination Committee of the Board of Directors;
10. Deliberated and passed the Proposal on Amending the Rules of Procedure for
the Salary and Assessment Committee of the Board of Directors;
11. Deliberated and passed the Proposal on Amending the Rules of Procedure for
the Strategy Committee of the Board of Directors;
12. Deliberated and passed the Proposal on Amending the Remuneration
Management System for Directors, Supervisors and Senior Executives;
13. Deliberated and passed the Proposal on Amending the Management
Measures on the Shares of the Company Held by Directors, Supervisors and
Senior Executives and the Changes of These Shares;
The 37th 14. Deliberated and passed the Proposal on Formulating the Working System of
Meeting of the the Secretary of the Board of Directors;
2023/09/07/ 2023/09/09/
7th Board of 15. Deliberated and passed the Proposal on Amending the President's Work
Directors Rules;
16. Deliberated and passed the Proposal on Formulating the Working System for
Independent Directors;
17. Deliberated and passed the Proposal on Amending the Financial
Management System;
18. Deliberated and passed the Proposal on Amending the Internal Audit System;
19. Deliberated and passed the Proposal on Formulating the Management System
for Providing Financial Assistance to External Parties;
20. Deliberated and passed the Proposal on Amending the Overseas Investment
Management System;
21. Deliberated and passed the Proposal on Amending the Working System of
the Information Disclosure Committee;
22. Deliberated and passed the Proposal on Amending the Management
Measures of Raised Funds;
23. Deliberated and passed the Proposal on Amending the Public Information
Disclosure Management System;
24. Deliberated and passed the Proposal on Formulating the Management System
of Foreign Exchange Derivatives Trading;
25. Deliberated and passed the Proposal on Formulating the Entrusted Financial
Management System;
26. Deliberated and passed the Proposal on Amending the Accountability System
for Major Errors in Information Disclosure in Annual Reports;
27. Deliberated and passed the Proposal on Amending the External Guarantee
Management System;
28. Deliberated and passed the Proposal on Amending the Related-party
Transaction Management System;
29. Deliberated and passed the Proposal on Reviewing Independent Directors'
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Allowances;
30. Deliberated and passed the Proposal on Convening the 2nd Extraordinary
General Meeting of Shareholders in 2023.
1. Deliberated and passed the Proposal on the Election of the Chairman of the
8th Board of Directors of the Company;
2. Deliberated and passed the Proposal on the Election of Members of the
Special Committee of the 8th Board of Directors;
3. Deliberated and passed the Proposal on the Appointment of the Company's
President;
4. Deliberated and passed the Proposal on the Appointment of the Company's
Vice President;
The 1st Meeting 5. Deliberated and passed the Proposal on the Appointment of the Company's
of the 8th Board 2023/09/26/ 2023/09/27/ Financial Leader (Chief Financial Officer);
of Directors 6. Deliberated and passed the Proposal on the Appointment of the Company's
Secretary of the Board of Directors;
7. Deliberated and passed the Proposal on the Appointment of the Company's
Securities Affairs Representative;
8. Deliberated and passed the Proposal on the Appointment of the Head of the
Company's Audit Department;
9. Deliberated and passed the Proposal on Authorizing the Chairman to Approve
the Overseas Investments of the Company and Its Wholly-owned and Holding
Subsidiaries.
The 2nd
Meeting of the 1. Deliberated and passed the Proposal on the Third Quarter Report in 2023 and
2023/10/25/
8th Board of Abstract;
Directors
The 3rd
(Extraordinary)
1. Deliberated and passed the Proposal on the Repurchase of the Company's
Meeting of the 2023/10/27/ 2023/10/30/
Shares;
8th Board of
Directors
1. Deliberated and passed the Proposal on Terminating the Implementation of the
Restricted Stock Incentive Plan for 2021 and Repurchasing and Cancelling
Restricted Stocks;
The 4th
(Extraordinary) 2. Deliberated and passed the Proposal on Temporarily Replenishing Working
Meeting of the 2023/12/01/ 2023/12/02/ Capital with Some Idle Raised Capitals;
8th Board of 3. Deliberated and passed the Proposal on Formulating the Working System for
Directors Special Meetings of Independent Directors;
4. Deliberated and passed the Proposal on Convening the 3rd Extraordinary
General Meeting of Shareholders in 2023.
2. Directors' attendance at board meetings and general meetings of shareholders
Directors' attendance at board meetings and general meetings of shareholders
Whether you
Number of Number of
have failed to Number of
board Number of Number of board Number of
attend the board the general
Name of meetings on-site board board meetings meetings absences
meetings in meetings of
directors during the meetings attended by attended by from board
person for two shareholders
Reporting attended correspondence an authorized meetings
consecutive attended
Period person
times
Wu
11 10 1 0 0 No 4
Yongqiang
Ji Shuhai 7 5 2 0 0 No 3
Ma Wei 11 11 0 0 0 No 4
Peng
11 11 0 0 0 No 4
Ganquan
Zheng Sibin 11 10 1 0 0 No 4
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Wu Hang 7 6 1 0 0 No 3
Huang
7 2 5 0 0 No 3
Yuegang
Hua Xiuping 7 2 5 0 0 No 3
Li Xumeng 11 6 5 0 0 No 4
Chen
4 1 3 0 0 No 1
Zhengxu
Qin Wei 4 1 3 0 0 No 1
Explanation for failure to attend the board meetings in person for two consecutive times
Not applicable
3. Objections raised by Directors to the matters related to the Company
Whether Directors raise objections to matters related to the Company
□ Yes No
During the Reporting Period, the Directors raised no objections to relevant matters of the Company.
4. Other descriptions on directors' performance of duties
Whether the directors' proposals to the Company have been adopted
Yes □ No
Director's explanation on the adoption or rejection of the Company's proposals
During the Reporting Period, all directors of the Company performed their duties diligently and strictly
followed the relevant regulations of the CSRC and the Shenzhen Stock Exchange as well as the Articles of
Association, Rules of Procedure for the Board of Directors and other regulations to carry out their work. They
paid close attention to the standardized operation and management of the Company. Based on the actual
situation of the Company, they put forward professional and constructive opinions on the Company's major
decisions. After sufficient communication and discussion, resolutions were formed to ensure that decisions were
scientific, timely and efficient, so as to safeguard the legitimate rights and interests of the Company and its all
shareholders.
VII. Status of special committees under the Board of Directors during the Reporting Period
Number Other
Name of Important opinions Details of
of Meeting perform
the Members Meeting content and suggestions put objections
meeting date ance of
committee forward (if any)
s held duties
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1. Deliberated the Proposal
on the Preliminary Review The Audit
Opinion on 2022 Annual Committee
Financial Statements of the reviewed the
Company; matters under
2. Deliberated the Proposal consideration in
on the Time and strict accordance
Arrangement of Annual with the Rules of
Huang Report 2022 Audit Work of Procedure for the
Yuegang, the Company; Audit Committee of
The 7th Not
Li the Board of Not
Audit 2023/01/31/ 3. Deliberated the Proposal applicab
Xumeng, Directors and applicable
Committee on the Audit Department's le
Hua relevant laws and
Xiuping Work Report for the Fourth regulations, and
Quarter of 2022 and Work fully communicated
Plan for the First Quarter of with the Finance
2023; Department and the
4. Deliberated the Proposal Auditing Agency,
on Summary of the Audit and unanimously
Department's Work in 2022 agreed to the
and Work Plan for Next relevant proposals.
Year.
1. Deliberated the Proposal
on Opinions on 2022
Financial Accounting
Report;
2. Deliberated the Proposal
on 2022 Internal Control
Evaluation Report;
3. Deliberated the Proposal
on the Audit Opinions on The Audit
the Occupation of the Committee
Company's Funds and reviewed the
4 External Guarantees by matters under
Controlling Shareholders consideration in
and Other Related Parties; strict accordance
with the Rules of
4. Deliberated the Proposal
Huang Procedure for the
on Renewing the
Yuegang, Audit Committee of
The 7th Employment of Baker Tilly Not
Li the Board of Not
Audit 2023/03/29/ China Certified Public applicab
Xumeng, Directors and applicable
Committee Accountants as the le
Hua relevant laws and
Company's Audit
Xiuping regulations, and
Institution for 2023;
fully communicated
5. Deliberated the Proposal with the Finance
on Provision for Asset Department and the
Impairment in 2022; Auditing Agency,
6. Deliberated the Proposal and unanimously
on the Special Report on agreed to the
the Deposit and Use of relevant proposals.
Raised Funds in 2022;
7. Deliberated on the
Proposal on Reviewing the
Company's Use of Funds
and Profit and Loss
Situation in Forward
Foreign Exchange
Transactions in 2022.
1. Deliberated the Proposals The Audit
on Opinions on the Committee
Huang reviewed the
Financial Accounting
Yuegang, matters under
The 7th Statement for the First Not
Li consideration in Not
Audit 2023/04/25/ Quarter of 2023; applicab
Xumeng, strict accordance applicable
Committee 2. Deliberated the Proposal le
Hua with the Rules of
Xiuping on the Audit Department's Procedure for the
Work Report for the First Audit Committee of
Quarter of 2023 and Work the Board of
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Plan for the Second Directors and
Quarter; relevant laws and
3. Deliberated the Proposal regulations, and
on the Occupation of the fully communicated
Company's Funds and with the Finance
External Guarantees by Department and the
Controlling Shareholders Auditing Agency,
and Other Related Parties and unanimously
for the First Quarter of agreed to the
2023; relevant proposals.
4. Deliberated on the
Proposal on Reviewing the
Company's Use of Funds
and Profit and Loss
Situation in Forward
Foreign Exchange
Transactions for the First
Quarter of 2023.
1. Deliberated the Proposal
on the Audit Department's
Work Report for the Second The Audit
Quarter of 2023 and Work Committee
Plan for the Third Quarter; reviewed the
2. Deliberated the Proposal matters under
on the Occupation of the consideration in
Company's Funds and strict accordance
External Guarantees by with the Rules of
Huang Controlling Shareholders Procedure for the
Yuegang, and Other Related Parties Audit Committee of
The 7th for the Second Quarter of Not
Li the Board of Not
Audit 2023/08/15/ 2023; applicab
Xumeng, Directors and applicable
Committee le
Hua 3. Deliberated on the relevant laws and
Xiuping Proposal on Reviewing the regulations, and
Company's Use of Funds in fully communicated
Forward Foreign Exchange with the Finance
Transactions for the Second Department and the
Quarter of 2023. Auditing Agency,
and unanimously
4. Deliberated the Proposal
agreed to the
on Opinions on the
relevant proposals.
Company's Mid-year
Financial Accounting
Statement in 2023;
1. Deliberated the Proposal
on Opinions on the
Company's Financial The Audit
Accounting Statement for Committee
the Third Quarter of 2023; reviewed the
2. Deliberated the Proposal matters under
on the Audit Report on the consideration in
Deposit and Use of the strict accordance
Company's Raised Funds with the Rules of
Huang for the Third Quarter of Procedure for the
Yuegang, 2023. Audit Committee of
The 7th Not
Li 3. Deliberated the Proposal the Board of Not
Audit 2023/10/25/ applicab
Xumeng, on the Opinions on the Directors and applicable
Committee le
Hua Occupation of the relevant laws and
Xiuping Company's Funds and regulations, and
External Guarantees by fully communicated
Controlling Shareholders with the Finance
and Other Related Parties Department and the
for the Third Quarter of Auditing Agency,
2023; and unanimously
agreed to the
4. Deliberated on the relevant proposals.
Proposal on Reviewing the
Company's Use of Funds
and Profit and Loss
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Situation in Forward
Foreign Exchange
Transactions for the Third
Quarter of 2023.
1. Deliberated the Proposal
on Opinions on the
Company's Financial
Accounting Statement for
the Third Quarter of 2023; The Audit
2. Deliberated the Proposal Committee
on the Audit Report on the reviewed the
Deposit and Use of the matters under
Company's Raised Funds consideration in
for the Third Quarter of strict accordance
2023. with the Rules of
3. Deliberated the Proposal Procedure for the
Qin Wei,
on the Opinions on the Audit Committee of
The 8th Li Not
Occupation of the the Board of Not
Audit Xumeng, 1 2023/10/25/ applicab
Company's Funds and Directors and applicable
Committee Chen le
External Guarantees by relevant laws and
Zhengxu
Controlling Shareholders regulations, and
and Other Related Parties fully communicated
for the Third Quarter of with the Finance
2023; Department and the
Auditing Agency,
4. Deliberated on the
and unanimously
Proposal on Reviewing the
agreed to the
Company's Use of Funds
relevant proposals.
and Profit and Loss
Situation in Forward
Foreign Exchange
Transactions for the Third
Quarter of 2023.
1. Proposal on
Remuneration of Company The Salary and
Directors in 2022; Assessment
2. Proposal on the Committee of the
Remuneration of the Board of Directors
Company's Senior deliberated the
Executives in 2022; matters under
consideration in
Hua 3. Proposal on Fulfillment strict accordance
The 7th Xiuping, of Restricted Share Release with the Rules of Not
Salary and Wu Conditions for 2021 Not
2023/03/29/ Procedure of the applicab
Assessment Yongqiang Restricted Stock Incentive applicable
Salary and le
Committee , Huang Plan after the First Assessment
Yuegang Restricted Stock Trade Committee of the
Period; Board of Directors
4. The Proposal on and relevant laws
Repurchase and and regulations, and
2 Cancellation of Some unanimously agreed
Restricted Stocks from to the relevant
Restricted Stock Incentive proposals.
Plan in 2021;
The Salary and
Assessment
Committee of the
1. Proposal on Reviewing Board of Directors
Hua Independent Directors' deliberated the
The 7th Xiuping, Allowances; matters under Not
Salary and Wu 2. Proposal on Repurchase consideration in Not
2023/09/07/ applicab
Assessment Yongqiang and Cancellation of Some strict accordance applicable
le
Committee , Huang Restricted Stocks from with the Rules of
Yuegang Restricted Stock Incentive Procedure of the
Plan in 2021; Salary and
Assessment
Committee of the
Board of Directors
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and relevant laws
and regulations, and
unanimously agreed
to the relevant
proposals.
The Salary and
Assessment
Committee of the
Board of Directors
deliberated the
matters under
Li consideration in
Xumeng, 1. Proposal on the strict accordance
The 7th Not
Wu Appointment of the with the Rules of Not
Nomination 2023/05/30/ applicab
Yongqiang Company's Chief Financial Procedure of the applicable
Committee le
, Huang Officer. Nomination
Yuegang Committee of the
Board of Directors
and relevant laws
and regulations, and
unanimously agreed
to the relevant
proposals.
2
The Salary and
Assessment
Committee of the
Board of Directors
deliberated the
matters under
Li consideration in
Xumeng, strict accordance
The 7th 1. Proposal on the General Not
Wu with the Rules of Not
Nomination 2023/09/07/ Election of the Board Of applicab
Yongqiang Procedure of the applicable
Committee Directors. le
, Huang Nomination
Yuegang Committee of the
Board of Directors
and relevant laws
and regulations, and
unanimously agreed
to the relevant
proposals.
The Strategy
Committee of the
Board of Directors
deliberated the
Wu matters under
Yongqiang consideration in
Zheng 1. Notice on Changing the strict accordance
The 7th Sibin Use of Part of the Raised with the Rules of Not
Not
Strategy 1 2023/09/07/ Funds and Permanently Procedure of the applicab
Peng applicable
Committee Supplementing Working Nomination le
Ganquan
Capital; Committee of the
Ma Wei Board of Directors
Li Xumeng and relevant laws
and regulations, and
unanimously agreed
to the relevant
proposals.
VIII. Work of the Board of Supervisors
Whether the Board of Supervisors found any risks in the Company during its supervisory activities during the
Reporting Period
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□ Yes No
The Board of Supervisors had no objection to the supervisory matters during the Reporting Period.
IX. Information on the Company's employees
1. Number of employees, specialty composition and education level
Number of employees of the parent company at the end of the Reporting
2,373
Period (person)
Number of employees in major subsidiaries at the end of the Reporting
6,950
Period (person)
Total number of employees at the end of the Reporting Period (person) 9,323
Total number of salaried employees in the current period (person) 9,323
Number of retired employees whose expenses need to be borne by the
7
parent company and major subsidiaries (person)
Specialty composition
Specialty composition category Number of specialty composition (person)
Production personnel 5,224
Salesperson 629
Technician 2,004
Financial staff 111
Administrative personnel 655
Logistics personnel 700
Total 9,323
Education level
Education level category Number (person)
Bachelor or above 3,215
Junior college level 1,482
Below junior college level 4,626
Total 9,323
2. Remuneration policy
The Company formulates salary management regulations in accordance with relevant national labor
regulations and policies and its actual situation, and assesses and pays salaries in accordance with the salary
management regulations. The Company strictly complies with the Labor Law and relevant national and local
labor laws and regulations, signs labor contracts with employees, and pays various employee insurance
according to regulations. The Company's overall remuneration consists of the following three parts: fixed salary,
performance-based salary and welfare allowances. Fixed salary includes basic salary, position salary and
confidentiality salary; performance-based salary includes performance bonus, year-end bonus and special bonus;
and welfare includes mandated benefits, company benefits and allowances.
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3. Training plan
The Company gives a priority to the training programs, and has established a talent training system
combining professional competence and leadership, including routine training, professional module training and
management cadre training. Different training courses are formulated in stages for new employees, personnel in
professional positions such as R&D, procurement, and sales, and middle and senior managers. An annual
training plan is implemented in the areas of corporate culture, professional skills, management improvement,
professional ethics, and mental health. Through the combination of internal and external training, excellent
human resources support is provided for the sustainable development of the Company.
During the Reporting Period, in order to help new employees better adapt to the new work environment
and positions, become familiar with the Company's relevant systems, and integrate into the corporate culture,
the Company's Human Resources Center prepared courses and implemented an annual training plan in the areas
of corporate culture, professional skills, management improvement, professional ethics, and mental health.
Integrating internal and external training into the office environment. In the "New Employee Training" section,
the training content covers company profile, benefits, corporate culture, information systems, finance and
intellectual property, legal basics and commercial confidentiality knowledge, ISC core ideas and concepts, and
occupational mental health, covering all the new employees. At the same time, for employees on the production
line, the Company continues to provide on-site training, and provides special training in the terms of taking up
posts, on-duty issues, job transfers, and special skill positions, so as to improve the professional capabilities of
front-line employees in workplace safety, operating procedures, and quality control.
In addition, in order to improve the effectiveness of professional training, the module heads of departments
of the Company and the Talent Development Department of the Company's Human Resources Center jointly
formulated the 2023 professional training plan based on actual business needs; at the same time, the Talent
Development Department of the Human Resources Center supervised and managed the implementation to
ensure the feasibility of the training plan. In 2023, the Company held targeted professional training for all
professional module positions from time to time, including finance, legal affairs, patents, customs, procurement,
supply chain, sales, R&D, manufacturing and quality, etc. Experts from various fields were invited to regularly
communicate and share on these professional modules, technologies and other topics.
The Company pays attention to the training of the current managers and management trainees, and has
formulated different training plans for them at different levels. During the Reporting Period, multiple sessions
of "New Goose Training Camp" (supervisor trainees) and "Flying Goose Training Camp" (management trainees)
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were carried out in Shenzhen, Huizhou, Ningbo, Vietnam, Romania and other places. The "New Goose/Flying
Goose Training Camp" is a professional training program for the Company's internal management
trainees/current managers. The program for current managers not only allows mangers to learn management
knowledge and absorb others' experience in a timely manner, but also provides a learning platform for sharing
and communication. The program for management trainees prepares future managers for knowledge reserve and
assessment before they enter management positions, and only those who pass the assessment can successfully
enter the management talent pool. In addition to basic course training, the training plan involves targeted
training activities such as management case practice, management development, micro-lesson presentations,
and IDP instructions by internal intermediate and senior tutors. In addition to basic course activities, the
Company assigns 2-3 management tutors to each trainee, who conduct monthly face-to-face interviews to help
trainees change their mindset and quickly adapt to management roles.
In order to better assist talent development, the Company continues to promote the construction of a job
qualification system, and carries out job qualification sorting and job personnel certification. During the
Reporting Period, the Company completed the review of qualification standards for 16 positions in the fields of
manufacturing, quality, R&D, etc., and completed certification for a total of approximately 300 people. At the
same time, based on the job qualification system, the Company has built 9 job learning maps in professional
fields and output 29 learning map courses. The job learning map provides staff in different positions with clear
and definite knowledge and skills required for personal development and improvement, and provides targeted
courses on the required professional knowledge and skills for each position, effectively helping personnel in
different positions improve their professional capabilities.
4. Labor outsourcing
□ Applicable Not applicable
X. Profit distribution and conversion of capital accumulation fund to share capital in the
Reporting Period
Profit distribution policy during the Reporting Period, especially the formulation, implementation or
adjustment of the cash dividend policy
Applicable □ Not applicable
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During the Reporting Period, the Company's Board of Directors formulated the Company's 2022 Profit
Distribution Plan, after detailed consultation with and listening to the opinions of the Company's shareholders,
in combination with the Company's 2022 profit situation, investment situation and 2023 investment and
expenditure plans. The 2022 Profit Distribution Plan was deliberated and passed at the 32nd Meeting of the 7th
Board of Directors and the 2022 Annual General Meeting of Shareholders. The 2022 Profit Distribution Plan is
as follows. Based on the Company's total share capital on the equity registration date, minus 1,264,354,172
shares of the repurchased shares in the Company's repurchase account, a cash dividend of RMB 0.6 (tax
inclusive) for every 10 shares will be distributed to all shareholders. No accumulation fund will be converted to
share capital, and no bonus shares will be issued. The above profit distribution plan was implemented on May 4,
2023.The 2022 Profit Distribution Plan is in compliance with laws, regulations, the Articles of Association and
the Company's Shareholder Dividend Plan for the Next Three Years (2020-2023), and the profit distribution
decision-making procedure complies with the provisions of relevant laws, regulations, rules and codes.
Special description of cash dividend policy
Whether it complies with the provisions of the Company's Articles of Association or the requirements of the
Yes
resolutions of shareholders' meeting:
Are the dividend criteria and proportion clear and explicit? Yes
Are the relevant decision-making procedures and mechanisms complete? Yes
Have independent directors fulfilled their duties and played their due role: Yes
If the Company does not distribute cash dividends, it shall disclose the specific reasons and the measures it
Not applicable
intends to take to enhance the level of investor returns:
Do small and medium shareholders have sufficient opportunities to express their opinions and demands, and
Yes
are their legitimate rights and interests fully protected:
If the cash dividend policy is adjusted or changed, are the conditions and procedures compliant and
Not applicable
transparent?
The Company is profitable during the Reporting Period and the parent company has positive profit available for
distribution to shareholders, but no cash dividend distribution plan has been proposed
□ Applicable Not applicable
Profit distribution and conversion of capital accumulation fund to share capital in the Reporting Period
Applicable □ Not applicable
Number of bonus shares send for every 10 shares (shares) 0
Number of dividend paid for every 10 shares (RMB) (tax
0.6
inclusive)
Equity base of the distribution plan (shares) 1,229,476,988
Cash dividends (RMB) (tax inclusive) 73,768,619.28
Amount of cash dividends distributed in other ways (such as
0.00
share repurchase) (RMB)
Total cash dividends (including other methods) (RMB) 73,768,619.28
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Distributable profit (RMB) 1,222,980,822.83
The proportion of total cash dividends (including other methods)
100%
to total profit distribution
Distribution of cash dividends in this period
If the Company is in the growth period and has major capital expenditures, the cash dividend shall account for at least 20% of the
profit distribution.
Detailed description of the profit distribution or capital accumulation fund conversion plan
The Company's profit distribution plan for 2023 is as follows: Based on the Company's total share capital of 1,229,476,988 shares
(excluding repurchase accounts and restricted shares to be cancelled), a cash dividend of RMB 0.6 (tax inclusive) per 10 shares will
be paid to all shareholders. The Company will not convert its accumulation fund to share capital and will not issue bonus shares. The
accumulated undistributed profits remaining after the implementation of the profit distribution plan shall be carried forward to
subsequent years. If the Company's total share capital changes before the implementation of the profit distribution plan due to share
repurchase or other reasons, the total distribution amount will be adjusted accordingly based on the principle of maintaining the same
distribution ratio per share.
XI. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
Applicable □ Not applicable
1. Equity incentive
Implementation of the 2021 Restricted Stock Incentive Plan:
(1) On September 20, 2021, the 13th (Extraordinary) Meeting of the 7th Board of Directors deliberated and
passed the Proposal on the Company's 2021 Restricted Stock Incentive Plan, and agreed to grant up to 34
million restricted stocks to the incentive object. The shares of this plan come from the shares repurchased by the
Company's special repurchase account and the ordinary A shares issued by the Company to the incentive object.
Among them, 14,838,920 shares in the Company's special repurchase securities account will be used as a source
of some of the shares in the implementation of this plan, while the rest will be issued to the incentive object.
The restricted period of the restricted stocks granted this time is 12 months, 24 months and 36 months from the
date of completion of the granting and registration of the restricted stocks, and the restricted stocks will be lifted
at a ratio of 30%, 30% and 40%, respectively.
(2) The Company held the 14th Meeting of the 7th Board of Directors and the 11th Meeting of the 7th
Board of Supervisors on October 13, 2021, which deliberated and passed the Proposal on the Company's 2021
Restricted Stock Incentive Plan (Draft) and Its Abstract, the Proposal on the Appraisal Management Measures
for the Implementation of the 2021 Restricted Stock Incentive Plan, and the Proposal on Requesting the General
Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's 2021
Restricted Stock Incentive Plan and agreed to grant 34 million restricted stocks to 1,250 incentive objects. The
11th Meeting of the 7th Board of Supervisors of deliberated and passed relevant proposals and verified the list
of incentive objects in this incentive plan. Independent directors expressed independent opinions on this matter,
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and lawyers issued legal opinions.
(3) On October 15, 2021, the Company publicly announced the names and positions of the incentive
objects in this incentive plan on the Company's internal OA office system, with a publicity period from October
15, 2021 to October 24, 2021.No organization or individual raised any objection to the list of incentive objects
during the publicity period. On October 26, 2021, the Company disclosed the Audit Opinions of the Board of
Supervisors on the List of Incentive Objects in the 2021 Restricted Stock Incentive Plan and the Explanation of
Publicity. The Board of Supervisors believed that the proposed incentive objects in this incentive plan did not
have the situation that relevant laws and regulations do not allow them to be the incentive objects, and met the
participation qualifications within the scope of the incentive objects in this incentive plan.
(4) On November 1, 2021, the Company held the 2nd Extraordinary General Meeting of Shareholders,
which deliberated and passed the Proposal on the Company's 2021 Restricted Stock Incentive Plan (Draft) and
Its Abstract, the Proposal on the Appraisal Management Measures for the Implementation of the 2021
Restricted Stock Incentive Plan, and the Proposal on Requesting the General Meeting of Shareholders to
Authorize the Board of Directors to Handle Matters Related to the Company's 2021 Restricted Stock Incentive
Plan and other relevant proposals related to the Incentive Plan, and authorized the Board of Directors to
determine the grant date under the Incentive Plan, grant restricted stocks to incentive objects when they met the
conditions and handle all matters required for the grant of restricted stocks.
(5) On November 2, 2021, the Company held the 16th (Extraordinary) Meeting of the 7th Board of
Directors and the 13th (Extraordinary) Meeting of the 7th Board of Supervisors, which deliberated and passed
the Proposal on Adjusting the Number of Stock Options Granted under the 2021 Restricted Stock Incentive Plan
and List of Incentive Objects and the Proposal on Granting Restricted Stocks to Incentive Objects. In view of
the dimission of the incentive object Ou Li specified in the Incentive Plan and the fact that Wang Cheng, Shen
Zhiwen and Tian Conghui et al. voluntarily gave up the subscription of restricted stocks to be granted by the
Company for personal reasons, the Board of Directors of the Company decided to cancel the restricted stocks to
be granted to them. After the cancellation, the number of restricted stocks to be granted under the Incentive Plan
was reduced from 34 million to 33.951 million, and the number of incentive objects decreased from 1,250 to
1,246. November 2, 2021 was determined as the grant date, and 33.951 million restricted stocks were granted to
1,246 eligible incentive objects. The Board of Supervisors of the Company reviewed the list of incentive objects,
and independent directors expressed their independent opinions and lawyers issued legal opinions.
(6) On December 7, 2021, the Company held the 17th (Extraordinary) Meeting of the 7th Board of
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Directors and the 14th (Extraordinary) Meeting of the 7th Board of Supervisors, which deliberated and passed
the Proposal on Adjusting the Number of Stock Options Granted under the 2021 Restricted Stock Incentive Plan
and List of Incentive Objects. In view of the fact that 22 incentive objects such as Li Xiang, Yu Dingguo and Lu
Yuanshan specified in the Incentive Plan voluntarily gave up their subscription of all the restricted stocks
granted to them for personal reasons and 10 incentive targets such as Liao Xinmeng, Wang Cao and Liu
Xiaoshi voluntarily gave up their subscription of some of the restricted stocks granted to them for personal
reasons in the process of capital payment before share registration after the Board of Directors of the Company
confirmed November 2, 2021 as the grant date under the 2021 Restricted Stock Incentive Plan, the Board of
Directors of the Company adjusted the objects and the number of shares granted under the 2021 Restricted
Stock Incentive Plan according to the authorization of the 2nd Extraordinary General Meeting of Shareholders
of the Company in 2021.After adjustment, the number of incentive objects under the 2021 Restricted Stock
Incentive Plan decreased from 1,246 to 1,224, and the number of restricted stocks granted decreased from
33.951 million to 33.54432 million. The Board of Supervisors of the Company reviewed the list of incentive
objects, and independent directors expressed their independent opinions and lawyers issued legal opinions.
(7) On December 17, 2021, upon review and confirmation by the Shenzhen Stock Exchange and Shenzhen
Branch of China Securities Depository and Clearing Co., Ltd., the Company completed the granting and
registration of 187,054 million restricted stocks (new shares) and 14,838,920 restricted stocks (repurchased
shares) involved in the 2021 Restricted Stock Incentive Plan. The above shares were listed on December 17,
2021.
(8) On March 30, 2022, the 23rd (Extraordinary) Meeting of the 7th Board of Directors deliberated and
passed the Proposal on the Proposal on Repurchase and Cancellation of Some Restricted Stocks from Restricted
Stock Incentive Plan in 2021, and agreed to repurchase and cancel 201,000 restricted stocks that have been
granted but not yet unlocked of 10 incentive objects, including Wu Song and Luo Qingshan in the 2021
Restricted Stock Incentive Plan, who resigned from the Company due to personal reasons. The above matters
had been deliberated and passed by the 2021 Annual General Meeting of Shareholders.
(9) On July 25, 2022, the 26th Meeting of the 7th Board of Directors and the 22nd Meeting of the 7th
Board of Supervisors deliberated and passed the Proposal on Adjusting the Repurchase Price of 2021 Restricted
Stock Incentive Plan. The 2021 annual equity distribution plan was implemented, and the repurchase price was
adjusted from RMB 7.23 per share to RMB 7.18 per share accordingly.
(10) On August 18, 2022, the 27th (Extraordinary) Meeting of the 7th Board of Directors and the 22nd
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(Extraordinary) Meeting of the 7th Board of Supervisors deliberated and passed the Proposal on the Proposal on
Repurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021, and
agreed to repurchase and cancel 1.291 million restricted stocks that have been granted but not yet unlocked of
66 incentive objects, including Wei Yin and Li Xinwei in the 2021 Restricted Stock Incentive Plan, who
resigned from the Company due to personal reasons. The above matters had been deliberated and passed by the
2nd Extraordinary General Meeting of Shareholders in 2022.
(11) On November 23, 2022, the 28th (Extraordinary) Meeting of the 7th Board of Directors and the 23rd
(Extraordinary) Meeting of the 7th Board of Supervisors deliberated and passed the Proposal on Adjusting
Corporate-level Performance Evaluation Indicators of 2021 Restricted Stock Incentive Plan, and agreed to
adjust the corporate-level performance evaluation indicators of 2021 Restricted Stock Incentive Plan.
Independent directors expressed independent opinions, the law firm issued legal opinions, and affiliated
directors recused themselves from voting. The above matters had been deliberated and passed on the 3rd
Extraordinary General Meeting of Shareholders in 2022.
(12) On December 27, 2022, given that 76 incentive objects, including Wu Song, Luo Qingshan, Wei Yin
and Li Xinwei in the 2021 Restricted Stock Incentive Plan, resigned from the Company due to personal reasons
and no longer met the conditions of becoming the incentive object, their restricted stocks that have been granted
but not unlocked could not be unlocked and would be canceled after being repurchased by the Company. The
above repurchase and cancellation matters were completed on December 27, 2022.After the repurchase and
cancellation, the number of incentive objects in the 2021 Restricted Stock Incentive Plan reduced from 1,224 to
1,148, and the general capital reduced from 1,271,027,372 shares to 1,269,535,372 shares.
(13) On March 29, 2023, the 32nd Meeting of the 7th Board of Directors and the 27th Meeting of the 7th
Board of Supervisors, deliberated and passed the Proposal on Fulfillment of Restricted Share Release
Conditions for 2021 Restricted Stock Incentive Plan after the First Restricted Stock Trade Period and Proposal
on Repurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021.
9,351,936 shares granted to 1,109 people under the 2021 Incentive Plan can be released after the first restricted
stock trade period. Meanwhile, 39 people, including Li Chaoyi, Wang Caihui and Ding Bo, resigned and left the
Company due to personal reasons, and four of the grantees, including Tang Yingjie and Shi Wenhui, of the
incentive plan achieved a "Good" or "OK" level in the performance appraisal, resulted in the release of 80% of
the restricted stock. It was approved to repurchase and deregister a total of 870,660 restricted shares formerly
owned by the above 43 people that shall not be released. An independent director of the Company given his
independent opinion for the approval, and the law firm issued the corresponding legal opinion.
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(14) On April 12, 2023, the release conditions for the first release period under the Company's 2021
Restricted Stock Incentive Plan have been fulfilled. On March 29, 2023, the 32nd Meeting of the 7th Board of
Directors of the Company deliberated and passed the Proposal on Fulfillment of Restricted Share Release
Conditions for 2021 Restricted Stock Incentive Plan after the First Restricted Stock Trade Period. The release
conditions for the first restricted stock trade period set out in the Company's 2021 Incentive Plan have been met.
A total of 9,351,936 shares were released from the said period, accounting for 0.7366% of the Company's total
share capital. The number of incentive recipients involved is 1,109. There is no difference between the relevant
content of the 2021 Incentive Plan implemented this time and the disclosed incentive plan.
(15) On April 25, 2023, the 33rd Meeting of the 7th Board of Directors and the 28th Meeting of the 7th
Board of Supervisors deliberated and passed the Proposal on Adjusting the Repurchase Price of Restricted
Stock Option Incentive Plan in 2021.Due to the equity distribution of the Company for the year 2022, the
repurchase price of Restricted Stock was adjusted from RMB 7.18 to RMB 7.12 in accordance with (I)
Adjustment method of repurchase price in Chapter XVI Principles for Repurchase and Deregistration of
Restricted Stock in the 2021 Restricted Stock Incentive Plan (Draft Amendment).The Board of Supervisors
reviewed the adjustment procedure, an independent director of the Company gave his independent opinion for
the approval, and the law firm issued the corresponding legal opinion.
(16) On September 7, 2023, the 37th Meeting of the 7th Board of Directors and the 30th Meeting of the 7th
Board of Supervisors deliberated and passed the Proposal on Repurchase and Cancellation of Some Restricted
Stocks from Restricted Stock Incentive Plan in 2021, and agreed to repurchase and cancel 1,062,600 restricted
stocks that have been granted but not yet unlocked of 65 incentive objects, including Wang Lin and Sun
Liangquan in the 2021 Restricted Stock Incentive Plan, who resigned from the Company due to personal
reasons. The above matters had been deliberated and passed on the 2nd Extraordinary General Meeting of
Shareholders in 2023.
(17) On November 16, 2023, after review and confirmation by the Shenzhen Branch of China Securities
Depository and Clearing Co., Ltd., the repurchase and cancellation of 1,933,260 restricted shares of 104 former
employees including Li Chaoyi, Wang Caizhi, Ding Bo, and 4 employees including Tang Yingjie and Shi
Wenhui (resigned) who were unable to release the restriction on sale due to the first-period performance
appraisal were completed. The number of incentive objects in 2021 Restricted Stock Incentive Plan reduced
from 1,148 to 1,044, and the general capital reduced from 1,269,535,372 shares to 1,267,602,112 shares.
(18) On December 1, 2023, the Company held the 4th (Extraordinary) Meeting of the 8th Board of
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Directors and the 3rd (Extraordinary) Meeting of the 8th Board of Supervisors to deliberate and pass the
Proposal on Terminating the Implementation of the Restricted Stock Incentive Plan for 2021 and Repurchasing
and Cancelling Restricted Stocks, agreeing to repurchase and cancel 270,900 restricted shares that have been
granted but not yet exercised by 20 incentive objects including Shen Haibing and Wang Sifu who have resigned
for personal reasons at a price of RMB 7.12 per share; and agreeing to repurchase and cancel 20,496,224
restricted shares that have been granted but not yet released by 1,024 in-service incentive objects at a price of
RMB 7.35 per share (it was rounded off, and the payment amount was subject to the actual calculation).The
above matters had been deliberated and passed on the 3rd Extraordinary General Meeting of Shareholders in
2023.
For details of the implementation of the Restricted Stock Incentive Plan in 2021, please refer to the
Company's announcements on Securities Times and CNINFO (http://www.cninfo.com.cn) on September 22,
2021, October 14, 2021, November 2, 2021, November 3, 2021, December 9, 2021, December 16, 2021,
December 20, 2021, March 31, 2022, July 26, 2022, August 19, 2022, September 24, 2022, December 28, 2022,
March 31, 2023, April 26, 2023, September 9, 2023, November 16, 2023, and December 2, 2023.
Equity incentives received by the Company's directors and senior executives
Applicable □ Not applicable
Unit: Share
Num
Num ber of
ber new Stock Number
of stock Number Numbe market of
Number The
stock optio of shares r of price at restricte Grant
of shares Number of number
optio ns exercisa Exercise stock the end d stocks price of Number of
exercise restricted stocks of
ns grant ble price options of the newly restricted restricted stocks
Name Position d during held at the shares
held ed during (RMB/shar held at Reporti granted stocks held at the end
the beginning of the released
at the durin the e) the end ng during (RMB/sh of the period
Reportin period in this
begin g the Reportin of the Period the are)
g Period period
ning Repo g Period period (RMB/ Reportin
of the rting share) g Period
year Perio
d
Director, Vice
Ma Wei President and BG 0 0 0 0 0 0 0 616,000 184,800 0 7.23 431,200
President
Director, Vice
Zheng Sibin President and BG 0 0 0 0 0 0 0 533,000 159,900 0 7.23 373,100
President
Peng Director and BG
0 0 0 0 0 0 0 400,000 120,000 0 7.23 280,000
Ganquan President
Vice President and
Wen
Secretary of the Board 0 0 0 0 0 0 0 183,000 54,900 0 7.23 128,100
Zhaohui
of Directors
Former Chief
Xiang Wei 0 0 0 0 0 0 0 183,000 54,900 0 7.23 128,100
Financial Officer
Luo Current Chief
0 0 0 0 0 0 0 50,000 15,000 0 7.23 35,000
Muchen Financial Officer
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Total -- -- -- 1,965,000 589,500 0 -- 1,375,500
During the Reporting Period, the release conditions for the first restricted stock trade period set out in the 2021 Restricted Stock
Remarks (if any)
Incentive Plan have been met. The proportion of release is 30%.
Evaluation and incentives of senior executives
The performance appraisal of the Company's core management personnel is based on the Company's
operating efficiency and strategic goals. It is based on the Company's annual production, operation, and
management capacity building and the completion of the goals of the managers' respective work. The appraisal
is conducted in the principles of combining distribution according to work with responsibilities, rights, and
interests, linking income levels with the Company's performance and the goals of their respective work, giving
equal weight to incentives and constraints, and combining result appraisal with process management. The
remuneration distribution of senior executives is determined based on the appraisal results to promote the
Company's long-term development and the achievement of its strategic goals.
The Company's senior executive remuneration is implemented on an annual salary basis, which consists of
basic annual salary, performance-based annual salary and long-term equity incentives. The basic annual salary
is mainly determined based on the Company's average salary level of senior executives in the previous year,
with reference to factors such as industry characteristics and market salary trends. The performance-based
annual salary is determined based on the year-end management level, operating efficiency and operating quality,
and is submitted to the Board of Directors for review and distribution after assessment. The long-term equity
incentive is formulated by the Company's regular equity incentive assessment management measures.
2. Implementation of employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentives
□ Applicable Not applicable
XII. Construction and implementation of internal control system during the Reporting
Period
1. Construction and implementation of internal control
During the Reporting Period, the Company continued to update and improve its internal control system
based on the actual situation of the Company, in accordance with the Basic Standards for Enterprise Internal
Control, Management Measures for Independent Directors of Listed Companies, Guidelines for the Application
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of Enterprise Internal Control and other normative documents, combined with the Company's internal control
system and evaluation methods, on the basis of daily supervision and special supervision of internal control.
During the Reporting Period, the Company revised the Articles of Association, Rules of Procedure for the
General Meeting of Shareholders, Rules of Procedure for the Board of Directors and other systems in
accordance with the latest provisions of the latest laws, regulations and normative documents and in light of the
Company's actual situation, and new internal management systems such as the Working System for Secretary of
the Board of Directors, Working System for Independent Directors and Working System for Special Meetings
of Independent Directors. At the same time, according to management needs, the Company set up an internal
audit agency and special meetings of independent directors. These mechanisms coordinated with the audit
committee and independent directors to supervise and inspect the implementation of relevant systems. This can
effectively ensure the implementation of the Company's rules and regulations, reduce operating risks, and
strengthen internal control. The Company continued to optimize its organizational structure, and clarified the
responsibilities of each department and corresponding positions. In this way, the Company effectively
controlled the implementation of internal controls involved in the entire process of business management
activities, such as decision-making, execution, supervision, and feedback, effectively avoiding internal control
loopholes.
The Company established a rigorous, scientific, effective internal control system suitable for its actual
situation, and formulated effective internal control evaluation standards; The Company effectively prevented
risks in business management and promoted the achievement of internal control objectives through the
operation, analysis, and evaluation of its internal control system.
2. Details of major internal control deficiencies found during the Reporting Period
□ Yes No
XIII. Management and control of the Company's subsidiaries during the Reporting Period
Not applicable
XIV. Internal control evaluation report or internal control audit report
1. Internal control evaluation report
Date for disclosure of the full text of the
March 27, 2024
internal control evaluation report
Index for disclosure of the full text of the CNINFO (http://www.cninfo.com.cn)
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internal control evaluation report
The proportion of total assets of the units
included in the evaluation scope to the
100.00%
total assets of the Company's consolidated
financial statements
The proportion of operating income of the
units included in the evaluation scope to
100.00%
the operating income of the Company's
consolidated financial statements
Defect identification criteria
Category Financial report Non-financial report
Indications of major defect of financial
reports include:
(1) Fraudulent conduct by the Company's
directors, supervisors and senior
executives;
(2) The Company has corrected its
The qualitative criteria for evaluating
published financial reports;
internal control defects in non-financial
(3) Material misstatements in the current reports determined by the Company are as
financial reports discovered by the follows:
certified public accountants but not The non-financial report defect
identified by the Company's internal
identification is mainly based on the
control; influence degree of the defect on the
(4) The audit committee and audit validity of the business process and the
department were ineffective in possibility of occurrence.
supervising the Company's external
If the probability of a defect is relatively
financial reports and internal control over low and it will reduce work efficiency or
financial reports. effect, or increase the uncertainty of the
Indications of significant defect of effect, or make it deviate from the
financial reports include: expected goal, it is recognized as a
Qualitative criteria
(1) Failure to select and apply accounting general defect;
policies in accordance with generally If the probability of a defect is relatively
accepted accounting principles; high and it will significantly reduce work
(2) Failure to establish anti-fraud efficiency or effect, or significantly
procedures and control measures; increase the uncertainty of the effect, or
make it significantly deviate from the
(3) Failure to establish corresponding
expected goal, it is recognized as a
control mechanisms for the accounting
treatment of non-routine or special significant defect; If the probability of a
defect is high and it will seriously reduce
transactions or failure to implement and
work efficiency or effect, or seriously
having no corresponding compensatory
increase the uncertainty of the effect, or
controls;
make it seriously deviate from the
(4) There is one or more defects in the expected goal, it is recognized as a major
control over the final financial reporting defect.
process and there is no reasonable
assurance that the prepared financial
reports are true and complete.
General defects refer to other control
defects other than the above-mentioned
major and important defects.
The quantitative standard uses The quantitative standard uses operating
consolidated operating income and total income and total assets as measurement
assets as measurement indicators. If the indicators. If the losses that may be
losses that may be caused or were caused caused or were caused by internal control
by internal control defects are related to defects are related to the profit statement,
the profit statement, they are measured by they are measured by the consolidated
Quantitative standard the consolidated operating income operating income indicators. If the
indicators. If the amount of misstatement amount of misstatement in the financial
in the financial reports that may be caused reports that may be caused by the defect
by the defect alone or together with other alone or together with other defects is less
defects is less than 0.5% of the than 0.5% of the consolidated operating
consolidated operating income, it is income, it is considered as a general
considered as a general defect; if it defect; if it exceeds 0.5% but less than 1%
exceeds 0.5% but less than 1% of the of the consolidated operating income, it is
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consolidated operating income, it is considered as a major defect; and if it
considered as a major defect; and if it exceeds 1% of the consolidated operating
exceeds 1% of the consolidated operating income, it is considered as a material
income, it is considered as a material defect.
defect. If the losses that may be caused or were
If the losses that may be caused or were caused by internal control defects are
caused by internal control defects are related to asset management, they are
related to asset management, they are measured by the indicator of total
measured by the indicator of total consolidated assets. If the amount of
consolidated assets. If the amount of misstatement in the financial reports that
misstatement in the financial reports that may be caused by the defect alone or
may be caused by the defect alone or together with other defects is less than
together with other defects is less than 0.5% of the total consolidated assets, it is
0.5% of the total consolidated assets, it is considered as a general defect; if it
considered as a general defect; if it exceeds 0.5% but less than 1% of the total
exceeds 0.5% but less than 1% of the total consolidated assets, it is considered as a
consolidated assets, it is considered as a major defect; and if it exceeds 1% of the
major defect; and if it exceeds 1% of the total consolidated assets, it is considered
total consolidated assets, it is considered as a material defect.
as a material defect.
Number of material defects in financial
0
reports (Nr.)
Number of material defects in non-
0
financial reports (Nr.)
Number of major defects in financial
0
reports (Nr.)
Number of major defects in non-financial
0
reports (Nr.)
2. Internal control audit report
Applicable □ Not applicable
The deliberation opinion paragraph in the internal control audit report
We believe that Shenzhen Topband Co., Ltd. maintained effective internal control over financial reports in all material aspects
as of December 31, 2023 in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.
Disclosure of internal control audit report Disclosure
Date of full-text disclosure of internal audit report March 27, 2024
Index of full-text disclosure of internal audit report CNINFO (http://www.cninfo.com.cn)
Internal control audit report opinion types Standard unmodified opinion
Are there material defects in the non-financial report No
Did the accounting firm issue an internal control audit report with a non-standard opinion
□ Yes No
Is the internal control audit report issued by the accounting firm consistent with the self-examination report of
the Board of Directors
Yes □ No
XV. Rectification of self-examination problems in special actions of governance of listed
companies
Not applicable
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Section V Environmental and Social Responsibility
I. Major environmental issues
Whether the listed companies and their subsidiaries were key pollutant discharging organizations announced by
the Environmental Protection Department
□ Yes No
Administrative punishment for environmental problems during the Reporting Period
Name of the Impacts on production Rectification
Reason for Description of
Company or its Punishment and operation of the measures of the
punishment violation
subsidiaries Company Company
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Refer to other environmental information disclosed by key pollutant discharge companies
During the production of the Company, there are no heavy pollutions. The Company has always paid attention
to its social public image, considers environmental protection as an important part of its corporation social
responsibilities, and makes ensure that industrial solid wastes are effectively disposed of in accordance with
regulations and the discharge of pollutants meets the national environmental protection standards.
The Company has passed the ISO14001:2015 environmental management system certification, also implements
the HSPMQC080000 hazardous substances process management system, and has established a series of
procedure documents in respect of environmental factor identification and evaluation, environmental
monitoring and measurement management, environmental communication management, treatment and control
of wastewater/exhaust gas/solid wastes, identification and control of hazardous substances, etc. to specify the
environmental protection organization and responsibilities under the environmental management system of the
Company. The certification of the system and the establishment of the related supporting systems by the
Company indicate that it has achieved institutionalized and practicable arrangements in environmental
protection.
Measures and effects taken to reduce carbon emissions during the Reporting Period
□ Applicable Not applicable
Reasons for not disclosing other environmental information
Not applicable
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II. Social responsibility
For details, please see the full text of the Company's "2023 ESG and Social Responsibility Report" published on
CNINFO (http://www.cninfo.com.cn) on March 27, 2024.
III. Consolidated and enhanced the achievements in poverty alleviation and rural
revitalization
The Company has not carried out any targeted poverty alleviation work in the reporting year, nor does it have
any subsequent targeted poverty alleviation plans.
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Section VI Important Matters
I. Fulfillment of commitments
1. Completed commitments in the Reporting Period and uncompleted commitments within the time limit
by the end of the Reporting Period by the Company's actual controller, shareholders, related parties,
acquirers, the Company and other committed related parties
Applicable □ Not applicable
Reasons for Commitme Commitme Commitme Commitmen
Commitment content Performance
commitments nt Party nt type nt time t period
Mr. Wu Yongqiang, the actual controller of
the Company, has promised that during the
Commitme
Commitments period of being the controlling shareholder
made during nts to and/or actual controller of the Company, he Fulfill the
Wu
the initial would not directly or indirectly engage in 2006/06/12/ Long-term commitment
Yongqiang horizontal
public offering any business which was the same, similar or strictly
or refinancing competition substantially competitive with the main
business of the Company at present and in
the future.
Ji Shuhai, a director of the Company as a
Commitme
Commitments shareholder, has promised not to directly or
made during nts to indirectly engage in any business which was Completion Fulfill the
the initial Ji Shuhai the same, similar or substantially competitive 2006/06/12/ of commitment
horizontal
public offering with the main business of the Company at performance strictly
or refinancing competition present and in the future in any way during
his term of office.
1. I would not deliver benefits to other
organizations or individuals free of charge or
under unfair conditions and not damage the
interests of the Company in other means.
2. I fully supported and cooperated with the
Company in regulating the duty consumption
behavior of directors and senior executives.
Any duty consumption behaviors would
occur within the scope necessary for
fulfilling my duty to the Company. I strictly
accepted the supervision and management of
the Company to avoid extravagance or
excessive consumption.
All 3. I would strictly abide by the relevant laws
Commitments and regulations, the regulations and rules of
directors
made during Other the CSRC, the stock exchange and other Fulfill the
and senior
the initial commitmen regulatory institutions as well as the 2020/04/29/ On-going commitment
executives
public offering ts requirements of the Company's rules and strictly
of the
or refinancing regulations on the code of conduct of
Company
directors and senior executives. Besides, I
would not use the Company's assets to
engage in investment and consumption
activities unrelated to the performance of my
duties.
4. I would try my best to make the Company
implement the compensation demand return
measures.
5. I would work hard to link the
compensation system formulated by the
Board of Directors or the Compensation
Committee with the implementation of the
Company's compensation return measures.
At the same time, I would vote in favor of
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the compensation system proposal when the
Board of Directors and the General Meeting
of Shareholders of the Company deliberated
(if I have vote/voting right).
6. If the Company would implement the
employee equity incentive in the future, I
would fully support the Company to link the
arrangement of exercise conditions of the
employee incentive with the implementation
of the Company's compensation return
measures. At the same time, I would vote in
favor of the employee equity incentive
proposal when the Board of Directors and the
General Meeting of Shareholders of the
Company deliberated (if I have vote/voting
right).
7. If I violate the above commitments, I
would make an explanation and apologize
publicly at the General Meeting of
Shareholders and the designated newspapers
and magazines designated by the CSRC. I
voluntarily accept the self-discipline
supervision measures taken by the stock
exchange and China Association for Public
Companies. If my breach of the commitment
causes losses to the Company or the
shareholders, I shall be liable for
compensation in accordance with the law.
1. I would not abuse the position of the
controlling shareholder/actual controller to
interfere with the operation and management
activities of the Company beyond my power
and would not infringe the Company's
interests under any circumstances.
2. I would try my best to make the Company
implement the compensation demand return
measures.
3. I would work hard to link the
compensation system formulated by the
Board of Directors or the Compensation
Committee with the implementation of the
Company's compensation return measures.
4. I would work hard to link the exercise
conditions (if any) of the corporate equity
incentive to be published in the future with
Commitments the implementation of the Company's
made during Other compensation return measures. Fulfill the
Wu
the initial commitmen 2020/04/29/ On-going commitment
Yongqiang 5. I would support the relevant proposals
public offering ts strictly
related to the implementation of the
or refinancing
Company's compensation return measures
and would vote for them (if I have voting
right).
6. After the issuance of this commitment, if
there are other requirements in the relevant
provisions of the regulatory institution on the
compensation return measures and its
commitment and the above commitments
could not meet the relevant requirements of
the regulatory institution, I promise that I
would issue a supplementary commitment in
accordance with the relevant provisions at
that time.
7. If I violate the above commitments, I
would make an explanation and apologize
publicly at the General Meeting of
Shareholders and the designated newspapers
and magazines designated by the CSRC. I
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voluntarily accept the self-discipline
supervision measures taken by the stock
exchange and China Association for Public
Companies. If my breach of the commitment
causes losses to the Company or the
shareholders, I shall be liable for
compensation in accordance with the law.
Whether the
commitment
Yes
was fulfilled
on schedule
If the
commitment
was not
fulfilled within
the time limit,
the specific
Not applicable
reasons for the
failure and the
next work plan
shall be
explained in
detail.
2. If there was a profit forecast for the Company's assets or projects, and the Reporting Period was still
in the profit forecast period, the Company shall explain why the assets or projects reached the original
profit forecast and the reasons.
□ Applicable Not applicable
II. Non-operating capital occupation of listed companies by controlling shareholders and
their related parties
□ Applicable Not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their related
parties in the Reporting Period of the Company.
III. External guarantee in violation of regulations
□ Applicable Not applicable
The Company had no external guarantee in violation of regulations during the Reporting Period.
IV. Explanation of the Board of Directors on the latest "non-standard audit report"
□ Applicable Not applicable
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V. Explanation of the "non-standard audit report" of the Accounting Firm in the Reporting
Period by the Board of Directors, the Board of Supervisors, and Independent Directors (if
any)
□ Applicable Not applicable
VI. Description of changes in accounting policies, accounting estimates, or corrections of
significant accounting errors compared with the previous year's financial report
□ Applicable Not applicable
There were no changes in accounting policies, accounting estimates or corrections of significant accounting
errors during the Reporting Period.
VII. Explanation of changes in the scope of the consolidated financial reports compared
with the previous year's financial report
Applicable □ Not applicable
During the Reporting Period, three companies were newly included in the scope of consolidation, which were
newly established sub-subsidiaries, and one of which was liquidated and cancelled. For details, please see IX,
Changes in the Scope of Consolidation in Section X.
VIII. Appointment and dismissal of accounting firms
Currently employed accounting firm
BAKER TILLY International Accounting Firm (Special
Name of domestic accounting firm
General Partnership)
Remuneration of the domestic accounting firm (RMB ten thousand) 100
Consecutive years for domestic accounting firms to provide audit
5
service
Name of the certified public accountant of the domestic accounting
Chen Zhigang, Zhao Yang, Liu Zhaoyu
firm
Chen Zhigang and Zhao Yang have been providing audit
Consecutive years for Certified Public Accountants of domestic
services for 5 consecutive years, and Liu Zhaoyu has been
accounting firms to provide audit service
providing audit services for 1 year
Whether to hire a new accounting firm during the current period
□ Yes No
Employment of accounting firm for audit of internal controls, financial consultant, or sponsor
Applicable □ Not applicable
In 2023, the Company hired Baker Tilly China Certified Public Accountants (Special General Partnership) as its
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internal control audit agency.
IX. Delisting after disclosure of the annual report
□ Applicable Not applicable
X. Matters related to bankruptcy reorganization
□ Applicable Not applicable
There were no matter related to bankruptcy reorganization during the Reporting Period.
XI. Major litigation and arbitration matters
□ Applicable Not applicable
The Company had no major litigation and arbitration matters during the Reporting Period.
XII. Punishment and rectification
□ Applicable Not applicable
There were no penalties or rectifications during the Company's Reporting Period.
XIII. Integrity condition of the Company, its controlling shareholders and actual controllers
□ Applicable Not applicable
XIV. Major related transactions
1. Related transactions connected with the daily operation
□ Applicable Not applicable
The Company had no related transactions connected with daily operations during the Reporting Period.
2. Related transactions arising from acquisition and sale of assets or equity
□ Applicable Not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the Reporting Period.
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3. Related transactions of joint foreign investment
□ Applicable Not applicable
The Company had no related transaction of joint foreign investment during the Reporting Period.
4. Related creditor's right and debt transaction
□ Applicable Not applicable
The Company had no related creditor's right and debt transaction during the Reporting Period.
5. Transactions with associated financial companies
□ Applicable Not applicable
There was no deposit, loan, credit extension or other financial business between the Company and its related
financial companies or between the related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable Not applicable
There was no deposit, loan, credit or other financial business between financial companies controlled by the
Company and related parties.
7. Other major related transactions
□ Applicable Not applicable
The Company had no other material related-party transactions during the Reporting Period.
XV. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable Not applicable
The Company had no trusteeship during the Reporting Period.
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(2) Contracting
□ Applicable Not applicable
The Company had no contracting during the Reporting Period.
(3) Lease
Applicable □ Not applicable
See "Sections X, VII, 82" of the Report for details
2. Material guarantee
Applicable □ Not applicable
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Unit: RMB ten thousand
External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries)
Whether
Date of
the
disclosure of
Name of Guarantee Actual date Actual Counter Whether guarantee
the relevant Guarantee Collateral Guarantee
guarantee amount of amount guarantee it was objects
announcement type (if any) period
object limit occurrence guaranteed (if any) completed were
of guarantee
related
amount limit
parties
Guarantee of the Company to its subsidiaries
Whether
Date of
the
disclosure of
Name of Guarantee Actual date Actual Counter Whether guarantee
the relevant Guarantee Collateral Guarantee
guarantee amount of amount guarantee it was objects
announcement type (if any) period
object limit occurrence guaranteed (if any) completed were
of guarantee
related
amount limit
parties
The tentative
guarantee
period shall not
Joint exceed 5 years
Ningbo
2019/01/12/ 19,000 liability from the date of No No
Topband
guaranty signing the
formal
guarantee
agreement
The tentative
guarantee
period shall not
Joint exceed 5 years
Ningbo
2020/10/20/ 22,000 2020/11/05/ 22,000 liability from the date of No No
Topband
guaranty signing the
formal
guarantee
agreement
Total actual balance
Total amount of approved
of guarantee for
guarantee for subsidiaries
41,000 subsidiaries at the
at the end of the Reporting
end of the Reporting
Period (B3)
Period (B4)
Guarantee of the subsidiary to its subsidiaries
Whether
Date of
the
disclosure of
Name of Guarantee Actual date Actual Counter Whether guarantee
the relevant Guarantee Collateral Guarantee
guarantee amount of amount guarantee it was objects
announcement type (if any) period
object limit occurrence guaranteed (if any) completed were
of guarantee
related
amount limit
parties
Joint 3 years from
Huizhou liability maturity date of
YAKO 2023/01/11 20,000 2023/01/16 2,146.2 guaranty debts of No No
Automation guaranteed
parties
Joint 3 years from
Huizhou liability maturity date of
YAKO 2023/01/11 20,000 2023/04/24 858.48 guaranty debts of No No
Automation guaranteed
parties
Huizhou Joint 3 years from
YAKO 2023/01/11 20,000 2023/06/29 1,430.8 liability maturity date of No No
Automation guaranty debts of
guaranteed
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parties
Joint 3 years from
Huizhou liability maturity date of
YAKO 2023/01/11 20,000 2023/07/31 858.48 guaranty debts of No No
Automation guaranteed
parties
Joint 3 years from
Huizhou liability maturity date of
YAKO 2023/01/11 20,000 2023/08/29 1,273.22 guaranty debts of No No
Automation guaranteed
parties
Total actual amount
Total amount of guarantee
of guarantee for
for subsidiaries approved
20,000 subsidiaries during 6,567.18
during the Reporting
the Reporting Period
Period (C1)
(C2)
Total actual balance
Total amount of approved
of guarantee for
guarantee for subsidiaries
20,000 subsidiaries at the 6,567.18
at the end of the Reporting
end of the Reporting
Period (C3)
Period (C4)
Total amount of the corporate guarantee (i.e. the sum of the first three items)
Total incurred
Total amount of
amount of actual
guarantees approved in the
20,000 guarantees provided 6,567.18
Reporting Period
in the Reporting
(A1+B1+C1)
Period (A2+B2+C2)
Total amount of guarantee Total actual balance
approved at the end of the of guarantee at the
61,000 6,567.18
Reporting Period end of the Reporting
(A3+B3+C3) Period (A4+B4+C4)
The proportion of the total actual amount of
guarantee (A4+B4+C4) in the Company's net 1.04%
assets
Note: 1. The bank loan involved in the guarantee the Company provided to its subsidiary Ningbo Topband has been repaid;
however the bank line is still in the valid period, and if a guarantee emerges due to withdrawals under the bank credit line later, the
Company will perform the related obligations for information disclosure in a timely manner.
2. According to relevant provisions in "3. Significant guarantees under III. Requirements for information disclosure in regular
reports (V)" of Disclosure of Significant Events in the Self-regulatory Guide for the Companies Listed on the Shenzhen Stock
Exchange No. 1 - Business Processing, Part IV: 4.1 Issues Concerning Disclosures in Regular Reports (Revised in 2023), the
"Actual amount guaranteed" in the "Guarantee of the subsidiary to its subsidiaries" shall be filled with the product of the amount a
subsidiary guaranteed for the guaranteed subsidiary multiplied by the share proportion of the listed company in the subsidiary.
Explanation of details of complex guarantee
None.
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3. Entrusting others to manage cash assets
(1) Entrusted financial management
Applicable □ Not applicable
Overview of entrusted financial management during the Reporting Period
Unit: RMB ten thousand
Accrued
Amount of Overdue impairment amount
Capital source of Unexpired
Specific types entrusted financial amount not of overdue and
entrusted financing balance
management recovered unrecovered wealth
management
Bank financial products Self-own capitals 139,339.95 30,300.00 0 0
Bank financial products Raised capitals 24,000.00 0 0 0
Total 163,339.95 30,300.00 0 0
Specific situation of high-risk entrusted financial management with the significant single amount or low security and poor liquidity
□ Applicable Not applicable
Entrusted financial management was expected to be unable to recover the principal or there were other situations that may lead to
impairment
□ Applicable Not applicable
(2) Entrusted loans
□ Applicable Not applicable
The Company had no entrusted loans during the Reporting Period.
4. Others major contracts
□ Applicable Not applicable
There were no other significant contracts in the Reporting Period of the Company.
XVI. Explanation of other major matters
Applicable □ Not applicable
1. Circulating of released restricted shares after the first restricted stock trade period of 2021
Restricted Stock Incentive Plan
On March 29, 2023, the 32nd Meeting of the 7th Board of Directors and the 27th Meeting of the 7th Board
of Supervisors of the Company deliberated and passed the Proposal on Fulfillment of Restricted Share Release
Conditions for 2021 Restricted Stock Incentive Plan after the First Restricted Stock Trade Period. 9,351,936
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shares granted to 1,109 people under the 2021 Incentive Plan can be released after the first restricted stock trade
period, and the shares released have been listed and circulated on April 12, 2023.
Refer to the notices the Company disclosed on the Securities Times and CNINFO
(http://www.cninfo.com.cn) on March 31, 2023 and April 7, 2023 respectively for details.
2. Repurchase of the Company shares
On October 27, 2023, the 3rd (Extraordinary) Meeting of the 8th Board of Directors of the Company
deliberated and passed the Proposal on the Plan to Repurchase the Company's Shares. The Company intended to
use its own funds to repurchase the Company's shares through centralized bidding transactions. The total
repurchase amount was not less than RMB 40 million and not more than RMB 60 million. The repurchase price
did not exceed RMB 15.00 per share (inclusive), and the Share Repurchase Report was disclosed on October 30,
2023.
During the Reporting Period, the Company accumulatively repurchased 6,266,600 shares through
centralized bidding with RMB 59,969,998.65 in total (excluding the transaction charge), accounting to 0.49% of
the current total share capital of the Company, with the highest transaction price at RMB 10.19/share and the
lowest transaction price at RMB 8.88/share. The repurchase plan was completed.
For details, please refer to the relevant announcements published by the Company on Securities Times and
CNINFO (http://www.cninfo.com.cn) on October 29, 2023, October 31, 2023, November 2, 2023, December 1,
2023 and December 28, 2023.
XVII. Major matters of subsidiaries of the Company
Applicable □ Not applicable
1. In February 2023, Huizhou Topband Electrical Technology Co., Ltd., a wholly-owned subsidiary of the
Company, participated in the competitive auction for the use right of a state-owned construction land organized
via the on-line land and mining trading system of Huizhou Public Resources Trading Center, successfully
acquired the use right of the land lot concerned, and signed an Acknowledgment of Public Trading Transaction
and a Sales Contract for State-owned Construction Land Use Right with Huizhou Bureau of Natural Resources
for the land use right of total 19,590 m2 state-owned construction land, amounting to RMB 18.57 million. 2. In
March 2023, Nantong Topband, a wholly-owned sub-subsidiary of the Company, participated in the
competitive auction for the use right of a state-owned construction land organized by Nantong Bureau of
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Natural Resources and Planning, successfully acquired the use right of the land lot concerned, signed an
Acknowledgment of On-line Transaction of State-owned Construction Land and a Nantong Economic and
Technological Development Area Investment and Development Supervision Agreement and then entered into a
Sales Contract for State-owned Construction Land Use Right with Nantong Bureau of Natural Resources and
Planning within the specified time for the land use right of total 80,017.05 m2 state-owned construction land,
amounting to RMB 30.7265 million. 3. In July 2023, Shenzhen Topband Battery Co., Ltd., a wholly-owned
subsidiary of the Company, invested in the establishment of a wholly-owned sub-subsidiary, Yolaness
Technology (HK) Co., Limited, with a registered capital of USD 500,000; in October 2023, Youneng
Technology (HK) Co., Ltd. invested in the establishment of a wholly-owned sub-subsidiary, YOLANESS
AFRICA (PTY) LTD.
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Section VII Share Change and Shareholders
I. Share change
1. Share change
Unit: Share
Before change Increase or decrease of change this time (+, -) After change
Issuan Conversion of
Stock
ce of accumulation
Number Proportion divide Others Subtotal Number Proportion
new fund into
nd
shares shares
I. Shares with non-
229,172,867 18.05% -5,236,510 -5,236,510 223,936,357 17.67%
tradable conditions
1. Shares held by the
0.00% 0.00%
state
2. Shares held by state-
0.00% 0.00%
owned legal persons
3. Shares held by other
229,061,867 18.04% -5,203,210 -5,203,210 223,858,657 17.66%
domestic capital
Including: shares held by
0.00% 0.00%
domestic legal persons
Shares held by domestic
229,061,867 18.04% -5,203,210 -5,203,210 223,858,657 17.66%
natural person
4. Shares held by foreign
111,000 0.01% -33,300 -33,300 77,700 0.01%
investment
Including: shares held by
0.00% 0.00%
overseas legal persons
Shares held by overseas
111,000 0.01% -33,300 -33,300 77,700 0.01%
natural persons
II. Shares with unlimited
1,040,362,505 81.95% 3,303,250 3,303,250 1,043,665,755 82.33%
tradable conditions
1. A shares 1,040,362,505 81.95% 3,303,250 3,303,250 1,043,665,755 82.33%
2. Domestic listed
0.00% 0.00%
foreign shares
3. Overseas listed
0.00% 0.00%
foreign shares
4. Others 0.00% 0.00%
III. Total number of
1,269,535,372 100.00% -1,933,260 -1,933,260 1,267,602,112 100.00%
shares
Note: The total number of shares at the end of the Reporting Period includes restricted shares that were already deliberated for
repurchase and cancellation but were not repurchased and cancelled yet.
Reasons for share change
Applicable □ Not applicable
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The change in the Company's share capital during the Reporting Period was caused by the repurchase and
cancellation of 1,933,260 restricted shares.
Approval of share change
Applicable □ Not applicable
The Company performed the following decision-making procedures on the repurchase and
cancellation of restricted shares:
On March 29, 2023, the 32nd Meeting of the 7th Board of Directors and the 27th Meeting of the 7th Board
of Supervisors, deliberated and passed the Proposal on Fulfillment of Restricted Share Release Conditions for
2021 Restricted Stock Incentive Plan after the First Restricted Stock Trade Period and Proposal on Repurchase
and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021. 9,351,936 shares
granted to 1,109 people under the 2021 Incentive Plan can be released after the first restricted stock trade period.
According to the examination and confirmation of Shenzhen Branch of China Securities Depository and
Clearing Co., Ltd., the shares were listed and circulated on April 12, 2023.Meanwhile, 39 people, including Li
Chaoyi, Wang Caihui and Ding Bo, resigned and left the Company due to personal reasons, and four of the
grantees, including Tang Yingjie and Shi Wenhui, of the incentive plan achieved a "Good" or "OK" level in the
performance appraisal, resulted in the release of 80% of the restricted stock. It was approved to repurchase and
deregister a total of 870,660 restricted shares formerly owned by the above 43 people that shall not be released.
An independent director of the Company given his independent opinion for the approval, and the law firm
issued the corresponding legal opinion.
On April 25, 2023, the Company held the 33rd Meeting of the 7th Board of Directors and the 28th Meeting
of the 7th Board of Supervisors, and deliberated and passed the Proposal on Adjusting the Repurchase Price in
the Restricted Stock Incentive Plan for 2021. The Company implemented the annual equity distribution in
2022.The repurchase price was adjusted from RMB 7.18 per share to RMB 7.12 per share accordingly.
On September 7, 2023, the Company held the 37th (Extraordinary) Meeting of the 7th Board of Directors
and the 30th Meeting of the 7th Board of Supervisors, deliberated and passed the Proposal on the Proposal on
Repurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan for 2021, and
agreed to repurchase and cancel 1,062,600 restricted stocks that had been granted but not yet unlocked of 65
incentive objects, including Wang Lin and Sun Liangquan in the restricted stock incentive plan for 2021, who
resigned from the Company due to personal reasons. The above matters had been deliberated and passed by the
2nd Extraordinary General Meeting of Shareholders in 2023.
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As of November 16, 2023, after review and confirmation by the Shenzhen Branch of China Securities
Depository and Clearing Co., Ltd., the repurchase and cancellation of 1,933,260 restricted shares of 104 former
employees including Li Chaoyi, Wang Caizhi, Ding Bo, and 4 employees including Tang Yingjie and Shi
Wenhui (resigned) who were unable to release the restriction on sale due to the first-period performance
appraisal were completed. The number of incentive objects in 2021 Restricted Stock Incentive Plan reduced
from 1,148 to 1,044, and the general capital reduced from 1,269,535,372 shares to 1,267,602,112 shares.
On December 1, 2023, the Company held the 4th (Extraordinary) Meeting of the 8th Board of Directors
and the 3rd (Extraordinary) Meeting of the 8th Board of Supervisors, deliberated and passed the Proposal on
Terminating the Implementation of the Restricted Stock Incentive Plan for 2021 and Repurchasing and
Cancelling Restricted Stocks, and agreed to repurchase and cancel 270,900 restricted shares which had been
granted to 20 incentive objects (including Shen Haibing and Wang Sifu) resigned due to personal reasons but
whose rights had not been exercised by them at a price of RMB 7.12 per share; and agreed to repurchase and
cancel 20,496,224 restricted shares which had been granted to 1,024 in-service incentive objects but whose
sales restriction had not been lifted at a price of RMB 7.35 per share (generated after rounding, with the
payment subject to actual calculation).The above matters had been deliberated and passed on the 3rd
Extraordinary General Meeting of Shareholders in 2023.As of the end of the Reporting Period, the shares to be
repurchased and cancelled had not been deregistered yet at Shenzhen Branch of China Securities Depository
and Clearing Co., Ltd.
Transfer of share change
□ Applicable Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings
per share in the latest year and the latest period, net assets per share attributable to ordinary shareholders of the
Company, etc.
Applicable □ Not applicable
For the impact of changes in shareholding on financial indicators such as the basic earnings per share,
diluted earnings per share, and net assets per share attributable to ordinary shareholders of the Company in the
last year and the most recent period, please refer to Section X Financial Report – XX. Supplementary
Information - 2. Return on net assets and earnings per share in this Announcement.
Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory
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institution
□ Applicable Not applicable
2. Changes in non-tradable shares
Applicable □ Not applicable
Unit: Share
Increase
Desterilization
Number of non- number of Number of non-
number of non-
Name of tradable shares non-tradable tradable shares Reasons for
tradable shares Date of lifting sales restriction
shareholder at the beginning shares in the at the end of the non-trading
in the current
of the period current period
period
period
Wu Executives
160,336,536 0 1,330,000 159,006,536 Not applicable
Yongqiang lock-in shares
Executives
Ji Shuhai 20,488,981 6,829,661 27,318,642 Not applicable
lock-in shares
Executives
Ma Wei 6,713,200 184,800 184,800 6,713,200 Not applicable
lock-in shares
Peng Executives
3,852,674 120,000 120,000 3,852,674 Not applicable
Ganquan lock-in shares
Executives
Zheng Sibin 4,752,727 159,900 159,900 4,752,727 Not applicable
lock-in shares
Executives
Wen Zhaohui 2,078,345 54,900 54,900 2,078,345 Not applicable
lock-in shares
Executives
Dai Huijuan 239,709 0 239,709 Not applicable
lock-in shares
Executives
Xiang Wei 573,375 54,900 210,975 417,300 Not applicable
lock-in shares
Executives
Luo Muchen 50,000 2,500 15,000 37,500 Not applicable
lock-in shares
The ratio at which the sales
restriction is lifted is 30% for
2023, 30% for 2024 and 40%
Incentive
Stock-option- for 2025; the shares whose
objects of
incentive sales restriction was lifted in
restricted 30,087,320 0 10,567,596 19,519,724
restricted this period are the restricted
stock
stocks shares which were unlocked
incentive plan
and which were repurchased
from former employees and
cancelled in 2023.
Total 229,172,867 7,406,661 12,643,171 223,936,357 -- --
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Note: The sales restriction on Mr. Wu Yongqiang's 1.33 million shares was lifted in this period, which was caused by the fact that
the transferable quota was not transferred out simultaneously during the transfer of shares custody in 2022 and the sales restriction
was lifted automatically after the transferable quota of the account was recalculated in 2023.
II. Issuance and listing of securities
1. Issuance of securities (excluding preferred shares) during the Reporting Period
□ Applicable Not applicable
2. Explanation of changes in the Company's total number of shares and shareholder structure and
changes in the Company's structure of assets and liabilities
Applicable □ Not applicable
1. Changes in the total number of shares and shareholder structure:
During the Reporting Period, 1,933,260 restricted shares were repurchased and cancelled, resulting in a
decrease of 1,933,260 shares in the Company's total share capital, from 1,269,535,372 shares to 1,267,602,112
shares.
2. Changes in the Company's structure of assets and liabilities
As of the end of the period, the total share capital of the Company was 1,267,602,112 shares, and the total
corporate assets at the end of 2023 were RMB 11,184,119,392.80, with an assets-liabilities ratio of 43.05%.
3. Existing internal employee shares
□ Applicable Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding situation of the Company
Unit: Share
Total
Total
number of
number of
preferred
ordinary The total number of
shareholders
Total number shareholders preferred shareholders
with voting
of ordinary at the end of whose voting rights were
rights
shareholders at the previous restored at the end of the
94,836 95,338 restored at 0 0
the end of the month previous month before the
the end of
Reporting before the disclosure date of the
the
Period disclosure annual report (if any) (see
Reporting
date of the Note 8)
Period (if
annual
any) (see
report
Note 8)
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Shareholding situation of shareholders holding more than 5% of the shares or top 10 shareholders (excluding shares lent through
refinancing)
Number of Changes in Pledge, marking or
Number of Number of
shares held increase or freezing
Proportion shares with shares with
Name of Nature of at the end of decrease in
of limited unlimited
shareholder shareholders the the
shareholding tradable tradable Share status Number
Reporting Reporting
conditions conditions
Period Period
Domestic
Wu
natural 16.73% 212,008,715 0 159,006,536 53,002,179 Pledge 38,860,000
Yongqiang
person
Domestic
Not
Ji Shuhai natural 2.16% 27,318,642 0 27,318,642 0
applicable
person
Hong Kong
Securities Overseas Not
0.02% 23,439,401 -15,496,542 0 23,439,401
Clearing legal person applicable
Company Ltd.
Domestic
Not
Xie Renguo natural 1.66% 21,100,988 -1,877,400 0 21,100,988
applicable
person
AMCM - self- Overseas Not
1.42% 18,039,806 10,337,380 0 18,039,806
own funds legal person applicable
Kuwait
Overseas Not
Investment 1.34% 17,038,293 12,871,643 0 17,038,293
legal person applicable
Authority
Dajia Life
Insurance Co.,
Not
Ltd. - Others 0.77% 9,736,600 -3,191,200 0 9,736,600
applicable
Universal
Product
Domestic
Not
Ma Wei natural 0.71% 8,950,934 0 6,713,200 2,237,734
applicable
person
Dongguan Domestic
Helios non-state- Not
0.66% 8,376,400 5,402,600 0 8,376,400
Industry Co., owned legal applicable
Ltd. person
Industrial
Bank Co., Ltd.
- Fullgoal
Xingyuan
Select 12- Not
Others 0.66% 8,356,273 8,356,273 0 8,356,273
month Period applicable
Hybrid
Securities
Investment
Fund
The top 10 shareholders of
strategic investors or general
legal persons due to Not applicable
placement of new shares (if
any) (see Note 3)
Explanation of the above
shareholders' relationship or Not applicable
concerted action
Explanation of the above
shareholders'
entrusting/entrusted voting Not applicable
rights and waiver of voting
rights
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Special explanations for the
The Company's special repurchase account is the special securities repurchase account of Shenzhen
existence of special
Topband Co., Ltd. The Company repurchased a total of 11,447,800 shares by centralized bid trading
repurchase accounts among
through the special securities repurchase account, accounting for 0.90% of the Company's current
the top 10 shareholders (if
total issued share capital.
any) (see Note 10)
Shareholding of the top 10 shareholders with unlimited tradable conditions
Number of shares held with unlimited tradable conditions at the Type of shares
Name of shareholder
end of the Reporting Period Type of shares Number
Wu Yongqiang 53,002,179 A shares 53,002,179
Hong Kong Securities
23,439,401 A shares 23,439,401
Clearing Company Ltd.
Xie Renguo 21,100,988 A shares 21,100,988
AMCM - self-own funds 18,039,806 A shares 18,039,806
Kuwait Investment Authority 17,038,293 A shares 17,038,293
Dajia Life Insurance Co., Ltd.
9,736,600 A shares 9,736,600
- Universal Product
Dongguan Helios Industry
8,376,400 A shares 8,376,400
Co., Ltd.
Industrial Bank Co., Ltd. -
Fullgoal Xingyuan Select 12-
8,356,273 A shares 8,356,273
month Period Hybrid
Securities Investment Fund
Zhong Mingyu 8,020,857 A shares 8,020,857
New China Life Insurance
Co., Ltd. - Traditional -
7,348,000 A shares 7,348,000
General Insurance Product -
018L - CT001 Shenzhen
Explanation of the
relationship or concerted
action between the top 10
shareholders with unlimited
tradable conditions and Not applicable
between the top 10
shareholders with unlimited
tradable conditions and the
top 10 shareholders
Explanation of the
participation of the top 10
ordinary shareholders in Shareholder Mr. Xie Renguo holds 15,268,703 shares through the credit securities account.
securities margin trading (if
any) (see Note 4)
Participation of top ten shareholders in lending of shares through refinancing business
Applicable □ Not applicable
Unit: Share
Participation of top ten shareholders in lending of shares through refinancing
Shares held through the Shares lent through Shares held through the Shares lent through
ordinary account and refinancing but not ordinary account and credit refinancing but not
credit account at the returned at the beginning account at the end of the returned at the end of the
Name of beginning of the period of the period period period
shareholder
(full name) Proportion Proportion Proportion Proportion
in the total in the total in the total in the total
Total Total Total Total
share share share share
capital capital capital capital
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AMCM -
self-own 7,702,426 0.74% 0 0.00% 18,039,806 1.73% 876,200 0.08%
funds
Changes in top ten shareholders compared with the previous period
Applicable □ Not applicable
Unit: Share
Changes in top ten shareholders compared with the end of the previous period
Number of shares held through
Newly Number of shares lent
shareholder's ordinary account and
added/removed through refinancing but not
credit account and shares lent
shareholders returned at the end of the
Name of shareholder (full name) through refinancing and not returned
during the period
at the end of the period
Reporting
Period Proportion in the Proportion in the
Total Total
total share capital total share capital
Orient Securities Co., Ltd. - Zhonggeng
Value Pioneer Stock Securities Removed 0 0.00% 0 0.00%
Investment Fund
Basic Endowment Insurance Fund 1206
Removed 0 0.00% 0 0.00%
Portfolio
China International Capital Corporation
Limited - China Construction Bank -
Removed 0 0.00% 0 0.00%
CICC Emerging Equity Collective Asset
Management Plan
Kuwait Investment Authority Newly added 0 0.00% 17,038,293 1.34%
Dongguan Helios Industry Co., Ltd. Newly added 0 0.00% 8,376,400 0.66%
Industrial Bank Co., Ltd. - Fullgoal
Xingyuan Select 12-month Period Hybrid Newly added 0 0.00% 8,356,273 0.66%
Securities Investment Fund
Did the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions
conduct the agreed repurchase transactions during the Reporting Period
□ Yes No
The top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions did not
conduct the agreed repurchase transactions during the Reporting Period
2. Controlling shareholder of the Company
Nature of controlling shareholder: controlled by natural person
Type of controlling shareholder: natural person
Obtained the right of residence in another
Name of controlling shareholder Nationality
country or region
Wu Yongqiang China No
Main occupation and position Served as the Chairman and President of Shenzhen Topband Co., Ltd. since 2009
Equity information on other domestic and None
foreign listed companies controlled or invested
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in by him during the Reporting Period
Change of controlling shareholders during the Reporting Period
□ Applicable Not applicable
The controlling shareholder of the Company did not change during the Reporting Period.
3. The Company's actual controller and its person acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Obtained the right of residence
Name of actual controller Relationship with actual controller Nationality
in another country or region
Wu Yongqiang In person China No
Main occupation and position Served as the Chairman and President of Shenzhen Topband Co., Ltd. since 2009
Information on domestic and
foreign listed companies controlled None
by him in the past 10 years
Change of actual controller during the Reporting Period
□ Applicable Not applicable
The actual controller of the Company did not change during the Reporting Period.
Block Diagram of Property Rights and Control Relationship between the Company and the Actual Controller
Wu Yongqiang
Shenzhen Topband Co., Ltd.
The actual controller controls the Company by means of trust or other ways of assets management
□ Applicable Not applicable
4. The cumulative number of pledged shares held by the controlling shareholder or the largest
shareholder and its persons acting in concert accounts for 80% of the total number of shares held by
them in the Company
□ Applicable Not applicable
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5. Other institutional shareholders holding over 10% of the shares
□ Applicable Not applicable
6. Restrictions on the reduction of shares held by the controlling shareholder, the actual controller, the
reorganizer and other commitment entities
□ Applicable Not applicable
IV. Specific implementation of share repurchase during the Reporting Period
Implementation progress of share repurchase
Applicable □ Not applicable
Proportion of
repurchased
Amount of Number shares to
Number of Proportion
Scheme shares to be Proposed of shares underlying
shares to be in the total
disclosure repurchase repurchase Repurchase purpose repurchas stocks
repurchased share
time d (RMB ten period ed involved in
(shares) capital
thousand) (shares) the equity
incentive plan
(if any)
The repurchased company shares
are all used to implement equity
incentives or employee stock
ownership plans for core
employees. If the Company fails to
2023/10/27 implement the aforementioned
2,666,700- 0.2121%- 4,000- 6,266,60
2023/10/30/ - purposes within 36 months after 0.00%
4,000,000 0.3151% 6,000 0
2024/10/26 the completion of the share
repurchase, or if the repurchased
shares are not fully used for the
aforementioned purposes, the
unused portion will be canceled in
accordance with the law.
Progress in the implementation of the reduction of share repurchase through centralized bid trading
□ Applicable Not applicable
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Section VIII Information on Preferred Shares
□ Applicable Not applicable
The Company did not have preferred shares during the Reporting Period.
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Section IX Relevant Information of Bonds
□ Applicable Not applicable
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Section X Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date of signing the audit report March 25, 2024
Name of audit institution BAKER TILLY International Accounting Firm (Special General Partnership)
Document number of audit report TZYZ [2024] No. 11572
Name of certified public accountant Chen Zhigang, Zhao Yang, Liu Zhaoyu
Text of audit report
TZYZ [2024] No. 11572
All shareholders of Shenzhen Topband Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Shenzhen Topband Co., Ltd. (hereinafter referred to as
"Topband"), including the consolidated and parent company balance sheet as of December 31, 2023, and the
consolidated and parent company income statement, the consolidated and parent company cash flow statement,
and the consolidated and parent company statement of change in shareholder equity of 2023, as well as related
notes to the financial statements.
In our opinions, the attached financial statements have been prepared in accordance with the Accounting
Standards for Business Enterprises in all significant aspects, and given fair views on the consolidated and parent
company financial positions of Topband as of December 31, 2023, and the consolidated and parent company
operating results as well as cash flow of 2023.
II. Basis for the formation of audit opinions
We have carried out audit in compliance with Auditing Standards for Certified Public Accountants of
China. Our responsibility under these standards is further described in "Certified Public Accountants'
Responsibility for the Financial Statements" in the audit report. In accordance with the China Code of Ethics for
Certified Public Accountants, we are independent of Topband and have performed other responsibilities in
professional ethics. We believe that the audit evidence obtained by us is sufficient and appropriate and has
provided a basis for the expression of our audit opinion.
III. Key Audit Matters
The key items for audit are items that we consider the most important for the audit of the financial
statements of the current period according to the professional judgment. The response of these items is based on
an audit of the overall financial statements and the formation of audit opinions, and we do not individually
express views on these items.
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Key Audit Matter How is the matter handled in the audit
1. Revenue recognition
The main audit procedures we have carried out for revenue
recognition include, but are not limited to the following:
(1) Understand, evaluate and test the effectiveness of internal
control design and operation related to sales and collection of
Topband;
(2) Understand revenue recognition policies through
interviews with management, examine relevant clauses of major
customer contracts, analyze and evaluate whether the actual
revenue recognition policies are appropriate, and review whether
In 2023, the operating income of
relevant accounting policies are consistently applied;
Topband was RMB 8,992.3422 million.
Considering that operating income is a key (3) Query and understand the background information of
operating indicator of Topband, there may major customers or new customers through public channels, such as
be potential misstatements in whether the business registration materials, and confirm whether there are
sales revenue of products is included in the potential unrecognized related party relationships between major
appropriate accounting period. Therefore, customers and Topband and related parties;
we take the recognition of operating
(4) Analyze the rationality of changes in the sales structure of
income as a key audit matter.
main products, and the gross profit margin changes of main
Please refer to the notes to the products and customers compared with the gross profit margin of
financial statements: "(XXVIII) Revenue" the same period in history and the same industry, and review the
of "III. Important accounting policies and rationality of sales revenue;
estimates", "(XLI) Operating income and
(5) Audit and confirm the balance of accounts receivable of
cost" of "VI. Notes to main items of
major customers by letter according to accounts receivable, and
consolidated financial statements", and
perform alternative tests on customers who have not responded to
"(IV) Operating income and cost" of
the letter;
"XVIII. Notes to items of financial
(6) Select samples, check the relevant documents of sales
statements of the parent company".
revenue transactions, such as sales contracts (orders), delivery
notes, receipts (warehouse receipts), customs declarations, account
statements, and sales invoices, and verify whether the confirmed
sales revenue is true;
(7) Select samples from the sales revenue transactions
recorded before and after the balance sheet date, check supporting
vouchers for revenue recognition under each model, and assess
whether the sales revenue is recorded in an appropriate accounting
period.
2. Impairment of accounts receivable
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Key Audit Matter How is the matter handled in the audit
The main audit procedures we have carried out for the
impairment of accounts receivable include, but are not limited to
the following:
(1) Understand, evaluate and test the effectiveness of internal
control design and operation related to Topband credit policy and
At the end of 2023, the book value of accounts receivable management;
accounts receivable of Topband was RMB
(2) Analyze the rationality of the accounting policies for
2,431.7739 million. Due to the large book
accrual of bad debt reserves for accounts receivable, including the
value of accounts receivable, the evaluation
basis for determining the portfolio of accounts receivable, expected
of bad debt reserves involves significant
credit loss rate, judgment of significant individual amounts,
accounting estimates and judgments by
judgment of individual accrual of bad debt reserves, and review
management. Therefore, we take bad debt
whether they comply with relevant accounting policies;
reserves for accounts receivable as a key
audit matter. (3) Obtain accounts receivable aging analysis table and bad
debt provision table, analyze and check the rationality and accuracy
Please refer to the notes to the
of accounts receivable aging division and bad debt provision;
financial statements: "(XII) Accounts
receivable" of "III. Important accounting (4) Analyze and calculate the ratio between the amount of bad
policies and estimates", "(IV) Accounts debt reserves on the balance sheet date and the balance of accounts
receivable" of "VI. Notes to main items of receivable, compare the amount of bad debt reserves accrued in the
consolidated financial statements", and "(I) previous period with the actual amount incurred, and analyze
Accounts receivable" of "XVIII. Notes to whether the accrual of bad debt reserves for accounts receivable is
items of financial statements of the parent sufficient;
company". (5) Analyze the rationality of the scale of accounts receivable
for major customers based on the credit period of accounts
receivable, understand the reasonable reasons for accounts
receivable beyond the credit period, and identify whether there are
any situations that affect the evaluation results of bad debt reserves
for accounts receivable of Topband.
IV. Other information
Topband's management (hereinafter referred to as "management") is responsible for other information.
Other information includes the information covered in the annual report for 2023, but does not include financial
statements and our audit reports.
We do not cover other information in the audit opinions issued for the financial statements, nor do we have
any form of attestation conclusions on other information.
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In conjunction with our audit of the financial statements, our responsibility is to read other information,
and in this process, consider whether other information is materially inconsistent with the financial statements
or what we have learned in the audit process or it appears to be significant misstatement.
Based on the work we have carried out, we shall report the fact if we determine the existence of a significant
misstatement in other information. We have nothing to report in this regard.
V. Responsibility of the management and the governance to the financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of
the Accounting Standards for Business Enterprises to make it fair reflection, then designing, implementing and
maintaining the necessary internal controls so that the financial statements do not have any significant
misstatement resulting from fraud or error.
When the financial statements were prepared, the management was responsible for assessing Topband's
ability to continue as a going concern, disclosing the matters related to the going concern (if applicable) and
applying the going concern assumption unless the management planned to conduct liquidation, terminated
operation or had no other practical option.
The governance level is responsible for overseeing the financial reporting process of Topband.
VI. Certified public accountant's responsibility for audit of financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the audit standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with the audits standards, we exercise professional judgment and
maintain professional scepticism throughout the audit. Meanwhile, we also execute the following works:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. Since fraud may involve collusion, forgery,
intentional omission, false representation or not be subject to internal control, the risk of failure to find the
significant misstatement due to fraud is higher than the risk of failure to find a major misstatement due to errors.
(2) Understand internal controls related to the audit in order to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
(4) Conclude on the appropriateness of using the going concern assumption by management. At the same
time, on the basis of the acquired audit evidence, make a conclusion whether there is a significant uncertainty in
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matters or circumstances that cause significant doubts about constant operational capacity of Topband. If we
come to the conclusion that there are significant uncertainties, the audit guidelines require that we draw the
attention of the report users to the relevant disclosures in the financial statements in the audit report; if the
disclosure is not sufficient, we shall issue a modified audit report. Our conclusion is based on the information
that was available as of the date of the audit report. However, future events or conditions may cause Topband to
discontinue operation.
(5) Evaluate the overall presentation, structure and content of the financial statements and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business
activities under Topband to make an audit opinion on the financial statements. We are responsible for guiding,
supervising and implementing the Company's audit and bear full responsibility for the audit opinion.
We communicate with the governance regarding the planned scope and timing of the audit, significant
audit findings and other matters, including any notable deficiencies in internal control that we identify during
audit.
We also provide a statement to the governance level regarding compliance with the independence-related
professional ethics requirements and communicate with the governance level on all the relationships and other
matters that may reasonably be considered to affect our independence, as well as relevant preventive measures.
Among items discussed with the governance level, we determine those items most important to the audit of
the financial statements of the current period and constitute a key item for audit. We describe these items in the
audit report unless laws and regulations prohibit the disclosure of these items, or in rare cases, the negative
consequences of communicating an item in the audit report are beyond the benefits of public interest, we
determine that the item shall not be communicated in the audit report.
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II. Financial Statements
The unit of statements in the financial notes is: RMB
1. Consolidated Balance Sheet
Prepared by: Shenzhen Topband Co., Ltd.
December 31, 2023
Unit: RMB
Items December 31, 2023 January 1, 2023
Current assets:
Monetary capital 1,550,450,889.82 1,403,026,071.34
Settlement of provisions
Lending funds
Tradable financial assets 656,704,087.16 342,959,450.31
Derivative financial assets
Notes receivable 54,198,392.53 51,791,758.90
Accounts receivable 2,431,773,877.56 2,549,734,039.66
Financing of accounts receivable 278,520,642.22 254,988,202.60
Prepayments 44,088,068.53 53,005,656.95
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 36,524,343.36 77,743,150.98
Including: interest receivable
Dividends receivable
Repurchase of financial assets for resale
Inventory 1,653,816,715.51 1,992,952,212.53
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 213,212,927.49 155,126,777.31
Total current assets 6,919,289,944.18 6,881,327,320.58
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 37,748,179.30 23,550,658.91
Other equity instrument investments 41,192,950.00
Other non-current financial assets
Investment property 103,404,402.85 106,242,777.85
Fixed assets 2,102,862,886.72 1,840,358,093.74
Construction in progress 568,107,950.65 234,775,312.11
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Productive biological assets
Oil and gas assets
Right-of-use assets 101,446,985.74 106,196,901.87
Intangible assets 607,110,895.95 547,316,314.57
Development expenditure 134,191,614.89 100,947,313.14
Goodwill 110,732,042.84 110,732,042.84
Long-term deferred expenses 182,804,408.10 132,221,565.23
Deferred tax assets 155,039,996.53 129,287,204.92
Other non-current assets 120,187,135.05 172,371,288.80
Total non-current assets 4,264,829,448.62 3,503,999,473.98
Total assets 11,184,119,392.80 10,385,326,794.56
Current liabilities:
Short-term loans 279,348,750.00 283,351,495.57
Loan from the Central Bank
Borrowed funds
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 927,833,178.70 1,065,652,340.80
Accounts payable 1,957,626,396.34 1,606,446,204.02
Accounts collected in advance 2,808,227.54 1,130,165.23
Contractual liabilities 168,681,571.89 138,281,929.17
Financial assets sold for repurchase
Deposit absorption and interbank deposit
Acting trading securities
Acting underwriting securities
Employee compensation payable 243,267,783.13 206,979,773.15
Taxes payable 92,374,605.57 88,405,514.65
Other account payable 151,341,029.40 335,047,520.52
Including: interest payable
Dividends payable
Service charges and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 370,623,598.03 75,356,303.72
Other current liabilities 32,561,693.03 22,476,430.74
Total current liabilities 4,226,466,833.63 3,823,127,677.57
Non-current liabilities:
Insurance contract reserve
Long-term loans 437,747,877.47 581,500,000.00
Bonds payable
Including: preferred shares
Perpetual capital securities
Lease liabilities 61,429,811.03 73,610,791.09
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Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income 11,146,292.42 13,370,250.14
Deferred tax liabilities 77,730,856.81 71,091,882.65
Other non-current liabilities
Total non-current liabilities 588,054,837.73 739,572,923.88
Total liabilities 4,814,521,671.36 4,562,700,601.45
Owner's equity:
Share capital 1,246,834,988.00 1,269,535,372.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserves 2,212,629,919.51 2,266,142,198.44
Minus: treasury shares 112,426,101.24 284,257,854.91
Other comprehensive income 11,932,029.41 -8,479,622.35
Special reserves
Surplus reserves 219,446,936.59 214,764,194.14
General risk provision
Retained earnings 2,706,499,696.23 2,271,529,693.82
Total owners' equity attributable to the
6,284,917,468.50 5,729,233,981.14
parent company
Minority shareholders' equity 84,680,252.94 93,392,211.97
Total owners' equity 6,369,597,721.44 5,822,626,193.11
Total liabilities and owners' equity 11,184,119,392.80 10,385,326,794.56
Legal Representative: Wu Yongqiang Accounting Head: Luo Muchen Accounting Department Head: Luo Muchen
2. Balance Sheet of Parent Company
Unit: RMB
Items December 31, 2023 January 1, 2023
Current assets:
Monetary capital 564,655,392.19 417,402,306.51
Tradable financial assets 449,502,886.74 243,989,473.48
Derivative financial assets
Notes receivable 21,283,544.89 15,799,157.89
Accounts receivable 1,255,501,213.69 1,746,854,951.82
Financing of accounts receivable 187,096,121.14 188,468,485.11
Prepayments 9,934,227.02 40,076,367.47
Other receivables 359,906,911.54 902,544,005.07
Including: interest receivable
Dividends receivable
Inventory 144,733,773.21 182,264,664.43
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Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 6,508,120.43
Total current assets 2,999,122,190.85 3,737,399,411.78
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 3,987,403,182.73 3,958,403,119.94
Other equity instrument investments
Other non-current financial assets
Investment property
Fixed assets 168,610,949.25 137,310,278.44
Construction in progress 12,393,132.55 22,775,996.65
Productive biological assets
Oil and gas assets
Right-of-use assets 9,098,366.55 14,765,367.57
Intangible assets 160,674,130.76 164,654,805.95
Development expenditure 83,523,254.86 53,698,954.16
Goodwill
Long-term deferred expenses 15,656,340.48 16,270,648.51
Deferred tax assets 44,367,498.96 33,648,975.07
Other non-current assets 9,641,839.34 8,686,283.92
Total non-current assets 4,491,368,695.48 4,410,214,430.21
Total assets 7,490,490,886.33 8,147,613,841.99
Current liabilities:
Short-term loans 204,133,333.33 10,000.00
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 1,136,576,558.75 968,645,962.43
Accounts payable 242,320,060.42 610,163,494.08
Accounts collected in advance 0.00 0.00
Contractual liabilities 95,017,210.64 50,483,032.75
Employee compensation payable 134,992,084.62 107,895,045.76
Taxes payable 17,927,120.33 23,225,286.94
Other account payable 470,481,715.23 1,258,071,297.67
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 307,665,202.21 6,896,279.13
Other current liabilities 11,806,507.10 5,163,830.86
Total current liabilities 2,620,919,792.63 3,030,554,229.62
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Non-current liabilities:
Long-term loans 300,000,000.00
Bonds payable
Including: preferred shares
Perpetual capital securities
Lease liabilities 1,591,379.57 7,788,265.09
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income 3,806,112.42 5,583,950.14
Deferred tax liabilities 32,635,559.80 32,610,663.86
Other non-current liabilities
Total non-current liabilities 38,033,051.79 345,982,879.09
Total liabilities 2,658,952,844.42 3,376,537,108.71
Owner's equity:
Share capital 1,246,834,988.00 1,269,535,372.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserves 2,254,729,914.19 2,314,366,149.44
Minus: treasury shares 112,426,101.24 284,257,854.91
Other comprehensive income
Special reserves
Surplus reserves 219,418,418.13 214,735,675.68
Retained earnings 1,222,980,822.83 1,256,697,391.07
Total owners' equity 4,831,538,041.91 4,771,076,733.28
Total liabilities and owners' equity 7,490,490,886.33 8,147,613,841.99
3. Consolidated income statement
Unit: RMB
Items In 2023, 2022
I. Total operating income 8,992,342,169.08 8,875,099,137.06
Including: operating income 8,992,342,169.08 8,875,099,137.06
Interest income
Premium earned
Service charge and commission income
II. Total operating cost 8,440,752,000.64 8,245,478,544.66
Including: operating cost 6,986,324,444.52 7,087,226,986.88
Interest expense
Service charge and commission payment
Surrender value
Net compensation expenditure
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Net reserve amount set aside for insurance liability
contracts
Policy dividend payment
Reinsurance expenses
Taxes and surcharges 55,464,701.92 59,394,768.35
Selling expenses 322,340,584.49 260,181,170.88
Overheads 438,361,342.66 369,502,745.36
R&D expenses 689,969,610.98 592,346,136.09
Finance expenses -51,708,683.93 -123,173,262.90
Including: interest expenses 38,085,866.07 35,262,744.35
Interest income 36,588,417.62 22,969,451.22
Plus: other income 65,448,854.90 39,182,827.95
Investment income (loss marked with "-") -11,234,586.49 564,908.47
Including: income from investment in associated
1,126,356.29 -2,568,468.91
enterprises and joint ventures
Derecognized gains from financial assets measured
at amortized cost
Exchange gains (loss marked with "-") 0.00 0.00
Net exposure hedging income (loss marked with "-
0.00 0.00
")
Loss from changes in fair value (loss marked with
12,535,503.26 87,818,625.99
"-")
Credit impairment losses (loss marked with "-") -3,019,928.48 -49,371,999.14
Asset impairment loss (loss marked with "-") -70,707,401.38 -69,957,962.94
Assets disposal revenue (loss marked with "-") -1,426,087.98 -1,612,652.02
III. Operating profits (loss marked with "-") 543,186,522.27 636,244,340.71
Plus: non-operating income 6,779,756.94 6,343,380.95
Minus: non-operating expenses 21,281,506.27 9,310,001.33
IV. Total profit (total loss marked with "-") 528,684,772.94 633,277,720.33
Minus: income tax expense 16,736,134.41 51,082,029.49
V. Net profit (net loss marked with "-") 511,948,638.53 582,195,690.84
(I) Classification according to business continuity
1. Net profit from continuing operations (net loss
511,948,638.53 582,195,690.84
marked with "-")
2. Net profit of discontinued operation (net loss
marked with "-")
(II) Classification according to ownership
1. Net income attributable to the shareholders of
515,513,995.18 583,000,286.76
the parent company
2. Profits and losses of minority shareholders -3,565,356.65 -804,595.92
VI. Net after-tax amount of other comprehensive
20,411,651.76 83,351,874.53
income
Net after-tax amount of other comprehensive
income attributable to the owner of the parent 20,411,651.76 83,351,874.53
company
(I) Other comprehensive income that cannot be
reclassified into profits or losses
1. Re-measurement of changes in the defined
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benefit plans
2. Other comprehensive income not available for
transferring to profits or losses under equity
method
3. Changes in fair value of other equity instrument
investment
4. Changes in fair value of enterprise's own credit
risk
5. Others
(II) Other comprehensive income that is
20,411,651.76 83,351,874.53
reclassified into profits and losses
1. Other comprehensive income that can be
transferred into profits or losses under the equity
method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive income
4. Provisions for credit impairment of other debt
investment
5. Cash flow hedging reserve
6. Difference in translation of foreign currency
20,411,651.76 83,721,983.94
financial statements
7. Others -370,109.41
Net after-tax amount of other comprehensive
income attributed to the minority of shareholders
VII. Total comprehensive income 532,360,290.29 665,547,565.37
Total consolidated income attributable to the
535,925,646.94 666,352,161.29
owners of the parent company
Total consolidated income attributable to minority
-3,565,356.65 -804,595.92
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.41 0.46
(II) Diluted earnings per share 0.41 0.46
In case of consolidation under the same control in the current period, the net profit realized by the combined party before the
consolidation is RMB 0, and the net profit realized by the combined party in the previous period is RMB 0.
Legal Representative: Wu Yongqiang Accounting Head: Luo Muchen Accounting Department Head: Luo Muchen
4. Parent company income statement
Unit: RMB
Items In 2023, 2022
I. Operating income 4,556,604,247.89 5,202,648,644.72
Minus: operating cost 3,771,059,615.43 4,377,885,965.16
Taxes and surcharges 12,815,647.25 27,844,377.41
Selling expenses 203,292,991.91 161,446,390.50
Overheads 208,265,939.19 199,330,817.89
R&D expenses 354,899,847.25 288,197,868.48
Finance expenses -28,182,271.87 -97,593,261.74
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Including: interest expenses 18,633,033.66 14,742,345.29
Interest income 17,407,950.27 12,642,025.47
Plus: other income 13,658,581.00 18,196,376.76
Investment income (loss marked with "-") -13,309,330.46 2,905,522.38
Including: income from investment in associated enterprises and
-47,053.31 -88,713.69
joint ventures
Derecognized gains from financial assets measured at amortized cost
(loss marked with "-")
Net exposure hedging income (loss marked with "-")
Loss from changes in fair value (loss marked with "-") 5,513,413.26 56,977,636.74
Credit impairment losses (loss marked with "-") 5,038,682.32 -7,750,950.30
Asset impairment loss (loss marked with "-") -4,422,995.84 -4,062,161.66
Assets disposal revenue (loss marked with "-") 90,933.75 73,024.55
II. Operating profit (loss marked with "-") 41,021,762.76 311,875,935.49
Plus: non-operating income 656,080.49 3,353,859.66
Minus: non-operating expenses 9,348,080.91 3,072,574.72
III. Total profit (total loss marked with "-") 32,329,762.34 312,157,220.43
Minus: income tax expense -14,497,662.19 28,491,596.65
IV. Net profit (net loss marked with "-") 46,827,424.53 283,665,623.78
(I) Net profit from continuing operation (net loss marked with "-") 46,827,424.53 283,665,623.78
(II) Net profit from termination of operation (net loss marked with "-
")
V. Net after-tax amount of other comprehensive income -370,109.41
(I) Other comprehensive income that cannot be reclassified into
profits or losses
1. Re-measurement of changes in the defined benefit plans
2. Other comprehensive income not available for transferring to
profits or losses under equity method
3. Changes in fair value of other equity instrument investment
4. Changes in fair value of enterprise's own credit risk
5. Others
(II) Other comprehensive income that is reclassified into profits and
-370,109.41
losses
1. Other comprehensive income that can be transferred into profits or
losses under the equity method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive
income
4. Provisions for credit impairment of other debt investment
5. Cash flow hedging reserve
6. Difference in translation of foreign currency financial statements
7. Others -370,109.41
VI. Total comprehensive income 46,827,424.53 283,295,514.37
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
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5. Consolidated Cash Flow Statement
Unit: RMB
Items In 2023, 2022
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 9,179,548,776.38 8,626,949,263.26
Net increase in deposits with other banks
Net increase in borrowing from the central bank
Net increase in funds borrowed from other financial
institutions
Cash from receipt of original insurance contract premiums
Receipt of net cash for reinsurance operations
Net increase in savings and investment funds of the insured
Cash from receipt of interest, service charges and commissions
Net increase in borrowed funds
Net increase in funds from repurchase operations
Net cash received for acting trading securities
Refund of tax and levies 434,533,452.30 438,361,600.33
Other cash received related to operating activities 128,571,908.33 128,901,892.62
Subtotal of cash inflow from operating activities 9,742,654,137.01 9,194,212,756.21
Cash paid for purchasing goods and accepting labor services 6,199,684,459.33 6,729,462,234.98
Net increase in loans and advances of clients
Net increase in deposits with central banks and interbanks
Cash in compensation funds paid for the original insurance
contract
Net increase in lending funds
Cash for payment of interest, service charges and commissions
Cash for payment of policy dividends
Cash paid to and for employees 1,524,104,853.03 1,486,982,071.31
Tax payments 224,407,012.95 223,823,801.46
Other cash paid in connection with operating activities 328,509,312.52 262,889,572.13
Subtotal of cash outflow from operating activities 8,276,705,637.83 8,703,157,679.88
Net cash flow from operating activities 1,465,948,499.18 491,055,076.33
II. Cash flow from investing activities:
Cash received from investment recovery 21,000,265.52 57,000,000.00
Cash received as return on an investment 10,790,963.35 3,133,377.38
Net cash recouped from disposal of fixed assets, intangible
7,452,254.91 3,500,006.86
assets, and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash received relating to investment activities
Subtotal of cash inflow from investment activities 39,243,483.78 63,633,384.24
Cash paid for the purchase and construction of fixed assets,
796,916,014.71 734,670,701.34
intangible assets and other long-term assets
Cash paid for investment 380,124,141.64 97,032,200.02
Net increase in pledged loans
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Net cash obtained from subsidiaries and other business units
Other cash paid related to investment activities 10,589,916.81 9,000,000.00
Subtotal of cash outflow from investment activities 1,187,630,073.16 840,702,901.36
Net cash flow from investment activities -1,148,386,589.38 -777,069,517.12
III. Cash flow from financing activities:
Cash received from absorbing investment 0.00 49,875,015.00
Including: cash received by subsidiaries' absorption of
minority shareholders' investment
Cash received from loan 975,297,372.48 1,048,010,000.00
Other cash received relating to financing activities 10,045,619.78 20,898,938.99
Subtotal of cash inflow from financing activities 985,342,992.26 1,118,783,953.99
Cash paid for repayments of debts 832,250,000.01 1,054,629,259.95
Cash paid to distribute dividends, profits or pay interest 104,646,124.41 92,131,933.80
Including: dividends and profits paid by subsidiaries to
minority shareholders
Other cash paid related to financing activities 281,629,710.21 96,944,669.54
Subtotal of cash outflow from financing activities 1,218,525,834.63 1,243,705,863.29
Net cash flow from financing activities -233,182,842.37 -124,921,909.30
IV. Impact of exchange rate fluctuations on cash and cash
36,082,945.10 49,113,085.12
equivalents
V. Net increase in cash and cash equivalents 120,462,012.53 -361,823,264.97
Plus: balance of cash and cash equivalents at the beginning of
1,374,281,693.23 1,736,104,958.20
the period
VI. Balance of cash and cash equivalents at the end of the
1,494,743,705.76 1,374,281,693.23
period
6. Cash flow statement of the parent company
Unit: RMB
Items In 2023, 2022
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 5,146,532,349.10 4,734,306,171.71
Refund of tax and levies 215,907,016.90 227,237,393.79
Other cash received related to operating activities 1,924,186,614.04 3,336,116,773.24
Subtotal of cash inflow from operating activities 7,286,625,980.04 8,297,660,338.74
Cash paid for purchasing goods and accepting labor services 4,086,653,994.37 3,894,502,672.61
Cash paid to and for employees 580,575,688.20 625,644,473.84
Tax payments 24,471,056.32 47,969,809.00
Other cash paid in connection with operating activities 1,993,324,411.74 3,442,743,241.93
Subtotal of cash outflow from operating activities 6,685,025,150.63 8,010,860,197.38
Net cash flow from operating activities 601,600,829.41 286,800,141.36
II. Cash flow from investing activities:
Cash received from investment recovery 0.00 0.00
Cash received as return on an investment 6,844,619.62 2,994,236.07
Net cash recouped from disposal of fixed assets, intangible
315,914.28 2,707,761.44
assets, and other long-term assets
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Net cash received from disposal of subsidiaries and other
business units
Other cash received relating to investment activities
Subtotal of cash inflow from investment activities 7,160,533.90 5,701,997.51
Cash paid for the purchase and construction of fixed assets,
125,616,454.72 113,986,390.44
intangible assets and other long-term assets
Cash paid for investment 205,000,000.00 975,275,000.00
Net cash obtained from subsidiaries and other business units
Other cash paid related to investment activities 43,224,116.81 0.00
Subtotal of cash outflow from investment activities 373,840,571.53 1,089,261,390.44
Net cash flow from investment activities -366,680,037.63 -1,083,559,392.93
III. Cash flow from financing activities:
Cash received from absorbing investment 0.00 49,875,015.00
Cash received from loan 230,000,000.00 718,010,000.00
Other cash received relating to financing activities 4,508,032.15 16,164,446.24
Subtotal of cash inflow from financing activities 234,508,032.15 784,049,461.24
Cash paid for repayments of debts 30,010,000.00 568,000,000.00
Cash paid to distribute dividends, profits or pay interest 87,648,051.70 74,343,060.81
Other cash paid related to financing activities 229,250,301.23 64,028,921.16
Subtotal of cash outflow from financing activities 346,908,352.93 706,371,981.97
Net cash flow from financing activities -112,400,320.78 77,677,479.27
IV. Impact of exchange rate fluctuations on cash and cash
13,051,509.87 28,525,978.51
equivalents
V. Net increase in cash and cash equivalents 135,571,980.87 -690,555,793.79
Plus: balance of cash and cash equivalents at the beginning of
394,701,442.83 1,085,257,236.62
the period
VI. Balance of cash and cash equivalents at the end of the
530,273,423.70 394,701,442.83
period
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7. Consolidated statement of changes in owner's equity
Amount in the current period
Unit: RMB
In 2023,
Owner's equity attributable to the parent company
Items Other equity instruments Minority
Other General Total owners'
Minus: treasury Special shareholders'
Share capital Perpetual Capital reserves comprehensive Surplus reserves risk Retained earnings Others Subtotal equity
Preferred shares reserves equity
capital Others income provision
shares
securities
I. Ending balance
1,269,535,372.00 2,266,142,198.44 284,257,854.91 -8,479,622.35 214,764,194.14 2,271,529,693.82 5,729,233,981.14 93,392,211.97 5,822,626,193.11
of last year
Plus: changes in
accounting
policies
Early error
correction
Others
II. Beginning
balance of the 1,269,535,372.00 2,266,142,198.44 284,257,854.91 -8,479,622.35 214,764,194.14 2,271,529,693.82 5,729,233,981.14 93,392,211.97 5,822,626,193.11
current year
III. Amount of
changes in
increase or
decrease in the -22,700,384.00 -53,512,278.93 -171,831,753.67 20,411,651.76 4,682,742.45 434,970,002.41 555,683,487.36 -8,711,959.03 546,971,528.33
current period
(decrease marked
with "-")
(I) Total
comprehensive 20,411,651.76 515,513,995.18 535,925,646.94 -3,565,356.65 532,360,290.29
income
(II) Capital
invested and -22,700,384.00 -53,356,916.24 -171,831,753.67 95,774,453.43 2,498,034.93 98,272,488.36
reduced by owners
1. Ordinary shares
invested by
owners
2. Capital
contributed by
holders of other
equity instruments
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3. Amount of
share-based
85,569,433.84 85,569,433.84 2,498,034.93 88,067,468.77
payment included
in owner's equity
4. Others -22,700,384.00 -138,926,350.08 -171,831,753.67 10,205,019.59 10,205,019.59
(III) Profit
4,682,742.45 -80,543,992.77 -75,861,250.32 -75,861,250.32
distribution
1. Withdrawal of
4,682,742.45 -4,682,742.45
surplus reserve
2. Withdrawal of
general risk
provision
3. Distribution to
owners (or -75,861,250.32 -75,861,250.32 -75,861,250.32
shareholders)
4. Others
(IV) Internal
carryover of
owner's equity
1. Conversion of
surplus reserves to
additional capital
(or share capital)
2. Conversion of
surplus reserves to
additional capital
(or share capital)
3. Surplus public
reserve to
compensate losses
4. Change of
defined benefit
plans carried
forward to retained
earnings
5. Other
comprehensive
income carried
forward into
retained earnings
6. Others
(V) Special
reserves
1. Amount
withdrawn in the
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current period
2. Amount used in
the current period
(VI) Others -155,362.69 -155,362.69 -7,644,637.31 -7,800,000.00
IV. Ending
balance of the 1,246,834,988.00 2,212,629,919.51 112,426,101.24 11,932,029.41 219,446,936.59 2,706,499,696.23 6,284,917,468.50 84,680,252.94 6,369,597,721.44
current year
Amount in the previous period
Unit: RMB
2022
Owner's equity attributable to the parent company
Items Other equity instruments Minority
Other General Total owners'
Minus: treasury Special shareholders'
Share capital Perpetual Capital reserves comprehensive Surplus reserves risk Retained earnings Others Subtotal equity
Preferred shares reserves equity
capital Others income provision
shares
securities
I. Ending balance 1,256,978,072.00 2,140,053,149.74 242,525,433.60 -91,831,496.88 186,397,631.76 1,779,243,483.61 5,028,315,406.63 88,559,929.67 5,116,875,336.30
of last year
Plus: changes in 365,494.43 365,494.43 30,539.28 396,033.71
accounting
policies
Early error
correction
Others
II. Beginning 1,256,978,072.00 2,140,053,149.74 242,525,433.60 -91,831,496.88 186,397,631.76 1,779,608,978.04 5,028,680,901.06 88,590,468.95 5,117,271,370.01
balance of the
current year
III. Amount of 12,557,300.00 126,089,048.70 41,732,421.31 83,351,874.53 28,366,562.38 491,920,715.78 700,553,080.08 4,801,743.02 705,354,823.10
changes in
increase or
decrease in the
current period
(decrease marked
with "-")
(I) Total 83,351,874.53 583,000,286.76 666,352,161.29 -804,595.92 665,547,565.37
comprehensive
income
(II) Capital 12,557,300.00 160,961,901.03 41,732,421.31 131,786,779.72 131,786,779.72
invested and
reduced by
owners
1. Ordinary shares 14,049,300.00 35,825,715.00 49,875,015.00 49,875,015.00
invested by
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owners
2. Capital
contributed by
holders of other
equity instruments
3. Amount of 134,356,746.03 134,356,746.03 134,356,746.03
share-based
payment included
in owner's equity
4. Others -1,492,000.00 -9,220,560.00 41,732,421.31 -52,444,981.31 -52,444,981.31
(III) Profit 28,366,562.38 -91,079,570.98 -62,713,008.60 -62,713,008.60
distribution
1. Withdrawal of 28,366,562.38 -28,366,562.38
surplus reserve
2. Withdrawal of
general risk
provision
3. Distribution to -62,713,008.60 -62,713,008.60 -62,713,008.60
owners (or
shareholders)
4. Others
(IV) Internal
carryover of
owner's equity
1. Conversion of
surplus reserves to
additional capital
(or share capital)
2. Conversion of
surplus reserves to
additional capital
(or share capital)
3. Surplus public
reserve to
compensate losses
4. Change of
defined benefit
plans carried
forward to
retained earnings
5. Other
comprehensive
income carried
forward into
retained earnings
6. Others
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(V) Special
reserves
1. Amount
withdrawn in the
current period
2. Amount used in
the current period
(VI) Others -34,872,852.33 -34,872,852.33 5,606,338.94 -29,266,513.39
IV. Ending 1,269,535,372.00 2,266,142,198.44 284,257,854.91 -8,479,622.35 214,764,194.14 2,271,529,693.82 5,729,233,981.14 93,392,211.97 5,822,626,193.11
balance of the
current year
8. Parent company's statement of changes in owner's equity
Amount in the current period
Unit: RMB
In 2023,
Other equity instruments
Items Other
Perpetual Minus: treasury Special Total owners'
Share capital Preferred Capital reserves comprehensive Surplus reserves Retained earnings Others
capital Others shares reserves equity
shares income
securities
I. Ending balance of last year 1,269,535,372.00 2,314,366,149.44 284,257,854.91 214,735,675.68 1,256,697,391.07 4,771,076,733.28
Plus: changes in accounting policies
Early error correction
Others
II. Beginning balance of the current 1,269,535,372.00 2,314,366,149.44 284,257,854.91 214,735,675.68 1,256,697,391.07 4,771,076,733.28
year
III. Amount of changes in increase -22,700,384.00 -59,636,235.25 -171,831,753.67 4,682,742.45 -33,716,568.24 60,461,308.63
or decrease in the current period
(decrease marked with "-")
(I) Total comprehensive income 46,827,424.53 46,827,424.53
(II) Capital invested and reduced by -22,700,384.00 -59,636,235.25 -171,831,753.67 89,495,134.42
owners
1. Ordinary shares invested by
owners
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment 79,290,114.83 79,290,114.83
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included in owner's equity
4. Others -22,700,384.00 -138,926,350.08 -171,831,753.67 10,205,019.59
(III) Profit distribution 4,682,742.45 -80,543,992.77 -75,861,250.32
1. Withdrawal of surplus reserve 4,682,742.45 -4,682,742.45
2. Distribution to owners (or -75,861,250.32 -75,861,250.32
shareholders)
3. Others
(IV) Internal carryover of owner's
equity
1. Conversion of surplus reserves to
additional capital (or share capital)
2. Conversion of surplus reserves to
additional capital (or share capital)
3. Surplus public reserve to
compensate losses
4. Change of defined benefit plans
carried forward to retained earnings
5. Other comprehensive income
carried forward into retained
earnings
6. Others
(V) Special reserves
1. Amount withdrawn in the current
period
2. Amount used in the current
period
(VI) Others
IV. Ending balance of the current 1,246,834,988.00 2,254,729,914.19 112,426,101.24 219,418,418.13 1,222,980,822.83 4,831,538,041.91
year
Amount in the previous period
Unit: RMB
2022
Other equity instruments
Items Other
Perpetual Minus: treasury Special
Share capital Preferred Capital reserves comprehensive Surplus reserves Retained earnings Others Total owners' equity
capital Others shares reserves
shares income
securities
I. Ending balance of last year 1,256,978,072.00 2,189,685,216.22 242,525,433.60 370,109.41 186,369,113.30 1,064,111,338.27 4,454,988,415.60
Plus: changes in accounting
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policies
Early error correction
Others
II. Beginning balance of the current 1,256,978,072.00 2,189,685,216.22 242,525,433.60 370,109.41 186,369,113.30 1,064,111,338.27 4,454,988,415.60
year
III. Amount of changes in increase 12,557,300.00 124,680,933.22 41,732,421.31 -370,109.41 28,366,562.38 192,586,052.80 316,088,317.68
or decrease in the current period
(decrease marked with "-")
(I) Total comprehensive income -370,109.41 283,665,623.78 283,295,514.37
(II) Capital invested and reduced by 12,557,300.00 155,943,760.34 41,732,421.31 126,768,639.03
owners
1. Ordinary shares invested by 14,049,300.00 35,825,715.00 49,875,015.00
owners
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment 129,338,605.34 129,338,605.34
included in owner's equity
4. Others -1,492,000.00 -9,220,560.00 41,732,421.31 -52,444,981.31
(III) Profit distribution 28,366,562.38 -91,079,570.98 -62,713,008.60
1. Withdrawal of surplus reserve 28,366,562.38 -28,366,562.38
2. Distribution to owners (or -62,713,008.60 -62,713,008.60
shareholders)
3. Others
(IV) Internal carryover of owner's
equity
1. Conversion of surplus reserves to
additional capital (or share capital)
2. Conversion of surplus reserves to
additional capital (or share capital)
3. Surplus public reserve to
compensate losses
4. Change of defined benefit plans
carried forward to retained earnings
5. Other comprehensive income
carried forward into retained
earnings
6. Others
(V) Special reserves
1. Amount withdrawn in the current
period
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2. Amount used in the current
period
(VI) Others -31,262,827.12 -31,262,827.12
IV. Ending balance of the current 1,269,535,372.00 2,314,366,149.44 284,257,854.91 214,735,675.68 1,256,697,391.07 4,771,076,733.28
year
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III. Basic information of the Company
Shenzhen Topband Co., Ltd. (hereinafter referred to as "the Company") formerly known as Shenzhen
Topband Electronic Equipment Co., Ltd., is a limited liability company approved by Shenzhen Administration
for Industry and Commerce on February 9, 1996. It has obtained the Business License of Enterprise Legal
Person with the registration number of 19241377-3.On January 10, 2001, upon approval, the name of Shenzhen
Topband Electronic Equipment Co., Ltd. was changed to Shenzhen Topband Electronic Technology Co., Ltd.
On July 15, 2002, with the approval of Shenzhen Municipal People's Government by issuing the Reply to the
Approval of the Reorganization and Establishment of Shenzhen Topband Electronic Technology Co., Ltd. (SFG
[2002] No. 24), it was agreed that Shenzhen Topband Electronic Technology Co., Ltd. would be reorganized
into a joint stock limited company jointly by five shareholders. On June 26, 2007, with the approval of the
Notice on Approving the Initial Public Offering of Shenzhen Topband Electronic Technology Co., Ltd. (CSRC
No. 2007135) issued by the China Securities Regulatory Commission, the Company issued shares to the public
and was listed on the Shenzhen Stock Exchange with the stock code (002139).In September 2009, the
Company's name was changed to Shenzhen Topband Co., Ltd.
The Company's registered address is F1, Topband Industrial Park Phase II, Keji Second Road, Tangtou
Community, Shiyan Sub-district, Bao'an District, Shenzhen. The unified social credit code of the business
license is 91440300192413773Q. The legal representative of the Company is Wu Yongqiang. As of December
31, 2023, the share capital is RMB 1,246,834,988.00.
The Company's main operating activities are the R&D, production, and sales of intelligent control system
solutions, i.e., with the "electronic control, motor, battery, power source and IoT platform" as the core,
providing a variety of custom solutions for household appliances, tools, new energy, and industry.
Submission of financial statement: This financial statement has been approved for submission by the
Company's Board of Directors on March 25, 2024.
IV. Preparation basis of the financial statement
1. Basis of preparation
The financial statements are based on the assumption of continuation of the Company, according to the
actual transactions, in accordance with the relevant provisions of the Accounting Standards for Business
Enterprises, and based on the following important accounting policies and accounting estimates.
2. Continuation
The Company has no major doubt on the ability of continuation and other influencing factors for 12
months since the end of the Reporting Period.
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V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates reminders:
None.
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared on the basis of above compiling foundation give a true and full view of
the financial position, operating results, cash flow and other relevant information of the Company, conforming
to the requirements of the latest Accounting Standards for Business Enterprises and its application guidelines,
interpretations as well as other relevant provisions (collectively referred to as "Accounting Standards for
Business Enterprises") issued by the Ministry of Finance.
Additionally, the presentation and disclosure requirements of the No. 15 Rules for the Preparation and
Presentation of Information Disclosure of Companies Offering Securities to the Public - General Provisions on
Financial Reporting (revised in 2023) issued by the CSRC were taken as reference in the financial report.
2. Accounting period
The fiscal year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31
every year.
3. Operating cycle
The financial year of the Company adopts the Gregorian calendar year, that is, from January 1 to
December 31 every year.
4. Recording currency
The bookkeeping base currency is RMB for the Company. The Company's overseas subsidiaries may
determine their own bookkeeping base currencies based on the currencies in the main economic environments
for their operation. In preparation of financial statements, the currency used is RMB.
5. Method for determining materiality criteria and basis for selection
Applicable □ Not applicable
Items Materiality criteria
The ending balance of individual accounts receivable and other
Accounts receivable with major single provision for bad debts
receivables is greater than RMB 1 million
Important projects under construction Single item amount is greater than RMB 10 million
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6. Accounting treatment for consolidation under the same control and under different control
1. Accounting treatment for consolidation under the same control
Assets and liabilities obtained by the Company in the consolidation under the same control realized
through one transaction or multiple transactions step by step were accounted based on book value of assets and
liabilities of the consolidated party in the consolidated financial statements of the final controller on
consolidation date. Capital reserves shall be adjusted according to difference between the book value of net
assets obtained by the Company and the payment for the book value of consolidation consideration (or total
nominal value of the issued shares). If the capital reserve is insufficient to be offset, the retained earnings shall
be offset.
2. Accounting treatment for consolidation under different control
The Company, at the date of acquisition, recognizes the difference of the combination cost greater than the
fair value share of the acquiree's net identifiable assets obtained in the combination as goodwill; if the
combination cost is less than the fair value share of the acquiree's net identifiable assets obtained in the
combination, the Company first re-checks the fair value of the acquiree's identifiable assets, liabilities and
contingent liabilities as well as the measurement of combination cost. The difference shall be included in the
current profits and losses, if the combination cost is still less than the fair value share of the acquiree's net
identifiable assets obtained in the combination.
The consolidation under different control realized step by step through multiple transactions shall be
treated as follows:
(1) Adjusting the initial investment cost of long-term equity investment. If the equity held before the
acquisition date is calculated with the equity method, it shall be re-measured as per the fair value of the equity
at the date of acquisition, and the difference between the fair value and its book value shall be included in the
current investment income; if the equity of the acquiree held before the acquisition date involves changes in
other comprehensive income and other owner's equity accounted under the equity method, it shall be transferred
to the current income on the acquisition date, excluding other comprehensive income arising from changes in
net liabilities or net assets of the defined benefit plan and changes in the fair value of other equity instruments
held re-measured by the investee.
(2) Recognizing goodwill (or amount included in the current profits and losses).The initial investment cost
of long-term equity investment after the first step adjustment is compared with the fair value share of net
identifiable assets of subsidiaries at the date of acquisition. If the former is greater than the latter, the difference
is recognized as goodwill; otherwise, it is included in the current profits and losses.
The situation of disposing equity step by step through multiple transactions to losing control over
subsidiaries
(1) Judging whether the transactions in the process of disposing equity step by step to losing control over
subsidiaries belong to the principle of "package transaction"
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The terms, conditions and economic impact of transactions relating to disposal of equity investment in
subsidiaries meet one or more of the following circumstances, which generally indicates that multiple
transactions shall be accounted for as a package transaction:
1) Such transactions are concluded at the same time or under the situation of considering the impact on
each other;
2) Only can the unity of such transactions reach an integral commercial result;
3) The occurrence of a transaction is based on the occurrence of at least one of other transactions;
4) A transaction is regarded as uneconomic, but being economic when regarded along with other
transactions.
(2) Accounting treatment for transactions in the process of disposing equity step by step to losing control
over subsidiaries belonging to "package transaction"
If the transactions relating to disposal of equity investment in subsidiaries to losing control over
subsidiaries belong to "package transaction", these shall be treated as a transaction for disposing the subsidiary
and losing control; however, the difference between the price of every disposal and the net assets share held in
the subsidiary corresponding to the disposal of investment before losing control shall be recognized as other
consolidated income in the consolidated financial statements, which shall be transferred to the current profits
and losses at the time of losing control.
In the consolidated financial statements, the remaining equity shall be re-measured according to its fair
value on the date of losing control. The difference between the sum of consideration obtained from equity
disposal and fair value of remaining equity less the net assets share held in original subsidiary and continuously
calculated from the date of acquisition as per the original shareholding ratio shall be included in the investment
income of the current period of loss of control. Other comprehensive income related to the equity investment in
original subsidiary shall be transferred to the current investment income or retained earnings at the time of
losing control.
(3) Accounting treatment for transactions in the process of disposing equity step by step to losing control
over subsidiaries not belonging to "package transaction"
If no loss of control occurs in the disposal of the investment in the subsidiary, the difference between the
disposal price and the net assets share held in the subsidiary corresponding to the disposal of investment in the
consolidated financial statements shall be included in the capital reserve (capital premium or share premium). If
the capital premium is insufficient to offset, the retained earnings shall be adjusted.
In case of loss of control of the investment of the subsidiary, in the consolidated financial statements, the
remaining equity shall be re-measured according to its fair value on the date of losing control. The difference
between the sum of consideration obtained from equity disposal and fair value of remaining equity less the net
assets share held in original subsidiary and continuously calculated from the date of acquisition as per the
original shareholding ratio shall be included in the investment income of the current period of loss of control.
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Other comprehensive income related to the equity investment in original subsidiary shall be transferred to the
current investment income or retained earnings at the time of losing control.
7. Criteria for determining control and methods for preparing consolidated financial statements
The scope of consolidation of the Company's consolidated financial statements shall be determined on the
basis of control.
Control refers to that the Company has power over the investee, enjoys variable returns through
participation in the relevant activities of the investee, and has the ability to use its power over the investee to
influence the amount of its returns. Relevant activities are those activities that have a significant impact on the
returns of the investee. The relevant activities of the investee shall be judged based on the specific
circumstances, and usually include the sale and purchase of goods or services, the management of financial
assets, the purchase and disposal of assets, research and development activities, and financing activities.
The Company makes a determination as to whether it controls an investee based on a comprehensive
consideration of all relevant facts and circumstances. Once changes in relevant facts and circumstances result in
changes in the relevant elements involved in the definition of control, the Company will reassess.
The consolidated financial statements, based on the financial statements of the parent company and its
subsidiaries, are prepared by the Company in accordance with the Accounting Standards for Business
Enterprises No. 33 - Consolidated Financial Statements and with reference to other relevant information.
8. Classification of joint venture arrangements and accounting treatment for joint operation
1. Identification and classification of joint venture arrangements
Joint venture arrangement refers to an arrangement under joint control by two or more parties. The joint
venture arrangement has the following features: (1) all parties are bound by the arrangement; (2) two or more
parties jointly control the arrangement. No single party can control the arrangement solely, and any party with
joint control over the arrangement can prevent other parties or a combination of party alliance from controlling
the arrangement alone.
Joint control refers to the common control of an arrangement in accordance with relevant agreements, and
the activities related to the arrangement must be agreed upon by the parties holding control right before the
decision can be made.
Joint venture arrangement includes joint operation and joint venture. Joint operation is the joint venture
arrangement in which the joint venture party holds the relevant assets of the arrangement and assumes the
relevant liabilities. Joint venture refers to a joint venture arrangement in which the joint venture party has rights
only to the net assets of the arrangement.
2. Accounting treatment for joint venture arrangement
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Parties in joint operation shall recognize the following items related to their share of interests in joint
operation, and perform accounting treatment in accordance with the relevant provisions of the Accounting
Standards for Business Enterprises: (1) recognize the assets held separately and those held jointly as per their
share; (2) recognize the liabilities assumed separately and those assumed jointly as per their share; (3) recognize
the income generated from the sale of its share of joint operation output; (4) recognize the income from the sale
of the output of the joint operation as per its share; (5) recognize the expenses incurred separately and those
incurred in the joint operation as per its share.
The parties of a joint venture shall make accounting treatment for the investment in the joint venture in
accordance with the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment.
9. Standards for determining cash and cash equivalents
Cash in the cash flow statement refers to cash on hand and deposits that are available for payment at any
time. Cash equivalents refer to investments with short term (generally due within three months from the date of
purchase), strong liquidity, easy to convert into known amount of cash and low risk of value change.
10. Foreign currency transaction and foreign currency statement translation
1. The translation of foreign currency transactions
When foreign currency transactions are initially recognized, they are converted into RMB at the spot
exchange rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated
at the spot exchange rate on the balance sheet date. The exchange difference arising from different exchange
rates shall be included in the current profits and losses, except for the exchange difference of the principal and
interest of foreign currency special borrowings related to the acquisition and construction of assets that meet the
capitalization conditions; foreign currency non-monetary items measured at historical cost shall be translated at
the spot exchange rate on the transaction date, with the amount in RMB maintaining unchanged; foreign
currency non-monetary items measured at fair value shall be translated at the spot exchange rate on the date of
determining fair value, with the difference included in the current profits and losses or other comprehensive
income.
2. Translation of foreign currency financial statements
The assets and liabilities in balance sheet shall be translated at the spot exchange rate on the balance sheet
date; except for the "retained earnings", other items in the owner's equity shall be converted at the spot
exchange rate on the transaction date; the income and expense in the income statement shall be converted at the
spot exchange rate on the transaction date. The difference in translation of foreign currency financial statements
generated from the above conversion is recognized as other comprehensive income.
11. Financial instruments
1. Recognition and derecognition of financial instruments
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When the Company becomes one party of the financial instrument contract, it shall recognize a financial
asset or financial liability.
The trading of financial assets in a conventional manner shall be recognized and derecognized according to
the accounting of the trading day. Conventional trading of financial assets refers to the collection or delivery of
financial assets within the time limit specified by laws and regulations or common practice in accordance with
the terms of the contract. Trading day refers to the date when the Company promises to buy or sell financial
assets.
If the following conditions are met, the financial assets (or a part of financial assets, or a part of a set of
similar financial assets) shall be derecognized, i.e., they shall be written off from its accounts and balance sheets:
(1) The right to receive cash flow of financial assets has expired;
(2) The right to receive cash flow of financial assets has been transferred, or the Company has assumed the
obligation to timely pay the full amount of the cash flow received to a third party under the "transfer agreement";
and (a) has transferred substantially all the risks and rewards from the ownership of financial assets, or (b)
abandoned the control of the financial asset, though almost all risks and rewards from the ownership of the
financial asset are neither transferred nor retained.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified according to the
Company's business model for the management of financial assets and the contractual cash flow characteristics
of financial assets as follows: financial assets measured at amortized cost, financial assets measured at fair value
through other comprehensive income, and financial assets measured at fair value through current profits and
losses. The subsequent measurement of financial assets depends on its classification.
The classification of financial assets is based on the Company's business model for the management of
financial assets and the cash flow characteristics of financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at amortized cost: the Company's business mode of managing the financial assets is to collect the
contract cash flow as the target; the contract terms of the financial asset stipulate that the cash flow generated on
a specific date is only the payment of principal and interest based on the amount of outstanding principal. For
such financial assets, the effective interest rate method is adopted, and subsequent measurement is made at
amortized cost, and the gains or losses arising from amortization or impairment are included in the current
profits and losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensive
income
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value with their changes included in other comprehensive income: the Company's business
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mode of managing the financial assets aims to collect the contract cash flow and sell them; the contract terms of
the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and
interest based on the amount of outstanding principal. For such financial assets, fair value is adopted for
subsequent measurement. The discount or premium is amortized using the effective interest rate method and
recognized as interest income or expense. Except the impairment loss and the exchange difference of foreign
currency monetary financial assets are recognized as the current profits and losses, the changes in the fair value
of such financial assets are recognized as other comprehensive income until their accumulated gains or losses
are transferred into the current profits and losses when the financial asset is derecognized. Interest income
related to such financial assets is included in the current profits and losses.
(3) Equity instruments investment measured at fair value with changes included in other comprehensive
income
The Company irrevocably chooses to designate part of the non-tradable equity instrument investment as
financial assets measured at fair value through other comprehensive income. Only the relevant dividend income
is included in the current profits and losses, and the changes in fair value are recognized as other comprehensive
income, until their accumulated gains or losses are transferred into retained earnings when the financial asset is
derecognized.
(4) Financial assets measured at fair value with changes included in the current profits and losses
The financial assets other than the above financial assets measured at amortized cost and those at fair value
through other comprehensive income are classified as financial assets measured at fair value with changes
included in the current profits and losses. At the time of initial recognition, for the purpose of elimination or
significant reduction of accounting mismatch, financial assets can be designated as those measured at fair value
with changes included in the current profits and losses. For such financial assets, fair value is used for
subsequent measurement, and all changes in fair value are included in the current profits and losses.
If and only when the Company changes the business model for managing financial assets, it will reclassify
all the affected financial assets.
For the financial assets measured at fair value and whose changes are included in the current profits and
losses, the relevant transaction costs are directly included in the current profits and losses, and such costs of
other types of financial assets are included in the initial recognition amount.
3. Classification and measurement of financial liabilities
During initial recognition, the Company's financial liabilities are classified as: "financial liabilities
measured at amortization cost" and "financial liabilities measured at fair value with their changes included into
the current profit and loss".
Financial liabilities satisfying one of the following requirements can be designated as financial liabilities
measured at fair value with their changes included in the current profit and loss during initial measurement: (1)
Such designation can eliminate or remarkably reduce the accounting mismatch; (2) According to group risk
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management or investment strategy in the formal written documents, the management and performance
evaluation of the portfolio of financial liabilities or portfolio of financial assets and financial liabilities are
conducted on the basis of fair price, and within the Group, it is reported to the key management personnel on
such basis; (3) Such financial liabilities include embedded derivatives requiring separate splitting.
The Company determines the classification of financial liabilities at the time of the initial recognition. For
the financial liabilities measured at fair value with changes included in the current profits and losses, the
relevant transaction costs are directly included in the current profits and losses, and such costs of other financial
liabilities are included in the initial recognition amount.
The subsequent measurement of financial liabilities depends on its classification:
(1) Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest rate method is adopted and the subsequent measurement
is conducted as per the amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and losses
Such financial liabilities include tradable financial liabilities (including derivatives that belong to financial
liabilities) and financial liabilities designated upon initial recognition as those measured at fair value with
changes included in the current profits or losses.
4. Set off of financial instruments
If the following conditions are met at the same time, financial assets and financial liabilities are presented
in the balance sheet at the net amount after offsetting each other: the Company has the legal right to offset the
recognized amount, which is currently enforceable; they plan to settle at the net amount, or realize the financial
assets and pay off the financial liabilities at the same time.
5. Impairment of financial assets
The Company recognizes the loss provision based on the expected credit loss for the financial assets
measured at the amortized cost, the debt instrument investment and financial guarantee contract measured at the
fair value and whose changes are included in other comprehensive income. The term "credit loss" refers to the
difference between all the contractual cash flows that the Company discounted at the original effective interest
rate and received according to the contract and all the expected cash flows, i.e., the present value of all the cash
shortage.
Upon considering all reasonable and well-founded information (including forward-looking information),
the Company estimates the expected credit impairment loss is withdrawn for "financial assets measured at
amortized cost" and "financial asset (debt instruments) measured at fair value with their changes included in
other comprehensive income" in single or combined manner.
(1) General model of expected credit loss
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If the credit risk of this financial instrument has increased obviously since initial recognition, the Company
will measure the loss reserves according to the expected credit loss amount of such financial instrument in the
whole duration; if the credit risk of this financial instrument hasn't increased obviously since initial recognition,
the Company will measure the loss reserves according to the expected credit loss amount of such financial
instrument in the next 12 months. The increased or reversed amount of the loss provisions arising therefrom
shall be included in the current profits and losses as impairment losses or gains. The specific assessment of
credit risk by the Company is detailed in the Note "XI. Risks Associated with Financial Instruments".
Generally, in case of overdue for more than 30 days, the Company will consider that the credit risk of such
financial instrument has increased obviously, unless conclusive evidence is available to prove that the credit risk
of such financial instrument hasn't obviously increased since the initial recognition.
To be specific, the Company divides the credit impairment process of financial instruments that have not
been impaired at the time of purchase or origination into three stages, with different accounting treatment for
the impairment of financial instruments at different stages:
First stage: credit risk has not increased significantly since initial recognition
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss in the next 12 months, and calculate the interest income as per its book balance (i.e. without
deducting the provision for impairment) and the actual interest rate (if the instrument is a financial asset, the
same below).
Second stage: the credit risk has increased significantly since the initial recognition, but the credit
impairment has not occurred
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration, and calculate the interest income as per its
book balance and the actual interest rate.
Third stage: credit impairment occurs after initial recognition
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration, but the calculation of interest income is
different from the financial assets at the first two stages. For the financial assets with credit impairment, the
enterprise shall calculate the interest income according to its amortized cost (book balance minus accrued
provision for impairment, i.e. book value) and the actual interest rate.
For the financial assets with credit impairment at the time of purchase or origination, the enterprise shall
only recognize the change of expected credit loss in the whole duration after initial recognition as loss provision,
and calculate the interest income as per its amortized cost and the effective interest rate adjusted by credit.
(2) Receivables and lease receivables
The Company measures the loss provisions as per the amount of expected credit losses throughout the
whole duration by the use of simplified model for expected credit loss for receivables specified in Accounting
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Standards for Business Enterprises No. 14 - Income, excluding significant financing components (including
cases in which financing components in contracts not exceeding one year are not taken into account in
accordance with the standards).
The Company makes accounting policy choices to adopt a simplified model for expected credit loss, i.e.,
measuring the loss provisions as per the amount equivalent to the expected credit loss throughout the whole
duration for receivables including significant financing components and lease receivables regulated by
Accounting Standards for Business Enterprises No. 21 - Leasing.
6. Transfer of financial assets
The financial assets shall be derecognized when the Company has transferred all the risks and rewards on
the ownership of the financial assets to the transferee. The financial assets shall not be derecognized if the
Company retains all the risks and rewards on the ownership of the financial assets.
If the Company neither transfers nor retains almost all the risks and rewards in the ownership of the
financial asset, the following conditions shall be referred to: if it gives up the control over the financial asset, it
shall terminate the recognition of the financial asset and recognize the assets and liabilities generated; if it does
not abandon the control over the financial asset, the relevant financial assets shall be recognized according to
the extent to which it continues to be involved in the transferred financial asset, and the relevant liabilities shall
be recognized accordingly.
If the financial guarantee is provided to the transferred financial assets to continue to be involved, the
assets generated from the continued involvement shall be recognized according to the lower of the book value
of the financial assets and the amount of financial guarantee. Financial guarantee amount refers to the maximum
amount that will be required to be repaid out of consideration received.
12. Notes receivable
The Company divides notes receivable into two portfolios of bank acceptance bills and commercial
acceptance bills by type of financial instrument. With respect to bank acceptance bills, the Company considers
its overdue default risk to be 0 for it has low overdue credit loss which has not significantly increased since the
initial recognition, because the acceptance bank pays the payee or holder a certain amount unconditionally when
the bill is due. In respect of commercial acceptance bills, the Company believes that the probability of default is
correlated with the aging, and the bad debts shall be accrued according to the accounting policy of expected
credit loss of accounts receivable.
13. Accounts receivable
The Company measures the loss provisions as per the amount of expected credit losses throughout the
whole duration by the use of simplified model for expected credit loss for receivables specified in Accounting
Standards for Business Enterprises No. 14 - Income, excluding significant financing components (including
cases in which financing components in contracts not exceeding one year are not taken into account in
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accordance with the standards). The increased or reversed amount of loss provisions generated therefrom shall
be included in the current profits and losses as impairment losses or gains.
The Company has implemented Accounting Standard No. 22 - Recognition and Measurement of Financial
Instruments (CK [2017] No. 7) since January 1, 2019. The Company believes that the probability of default is
related to the aging, which is still a mark of whether the credit risk of the Company's accounts receivable
increases significantly, after it has reviewed the appropriateness of the provision for bad debts receivable in
previous years based on the Company's historical bad debt losses. Therefore, credit risk loss of the Company's
accounts receivable is still estimated on the basis of aging according to the original loss ratio of previous years.
The accounting policies for measuring overdue credit loss of accounts receivable adopted by the Company are
as follows:
1. Receivables with significant individual amount and individual provision for bad debts
Significant individual amount refers to the amount of which the ending balance of individual receivables is
more than RMB 1 million.
At the end of the period, a separate impairment test will be carried out on the individual receivables with
significant amount. If there is objective evidence that it is impaired, the impairment loss shall be recognized
with provision for bad debts according to the difference between the present value of future cash flow and the
book value.
2. Receivables with provision for bad debts by portfolio
The individual receivables with not significant amount at the end of the period, together with the
receivables that have not been impaired after separate test, are divided into several portfolios according to the
aging as the credit risk characteristics, and the impairment loss is calculated and determined according to a
certain proportion of the ending balance of these receivables portfolio (the impairment test can be conducted
separately), with provision for bad debts.
Except for the receivables for which provision for impairment has been made separately, the Company
determines the proportion for following bad debt provision based on the actual loss rate of the portfolio of the
same or similar receivables in previous years with the aging of receivables as the credit risk feature and in
combination with the current situation:
Aging Estimated loss of accounts Estimated loss of other
receivable (note) receivables
Within 1 year (including 1 year) 3.10% 5.00%
1-2 years (including 2 years) 9.04% 10.00%
2-3 years (including 3 years) 22.11% 30.00%
3-4 years (including 4 years) 47.51% 50.00%
4-5 years (including 5 years) 84.26% 80.00%
Above 5 years 100.00% 100.00%
Including: those that have been determined to be irrecoverable Write-off Write-off
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Note: when measuring the expected credit loss of receivables, the Company has referred to the historical
experience of credit loss and adjusted it based on forward-looking estimates.
3. Receivables with not significant amount but with single provision for bad debts
Reasons for individual provision for bad debts: the Company conducts a separate impairment test for the
receivables with the following characteristics, although its amount is not significant. If there is objective
evidence that the receivables are impaired, the impairment loss shall be recognized with provision for bad debts
according to the difference between the present value of future cash flow and the book value; receivables that
are in dispute with the other party or involved in litigation or arbitration; receivables that have obvious
indications that the debtor is likely to be unable to perform the repayment obligation, etc.
Method for bad debt provision: the impairment test shall be conducted separately. If there is objective
evidence that it has been impaired, the impairment loss shall be recognized with provision for bad debts
according to the difference between the present value of future cash flow and its book value.
The Company measures the loss provisions as per the amount of expected credit losses throughout the
whole duration by the use of simplified model for expected credit loss for receivables specified in Accounting
Standards for Business Enterprises No. 14 - Income, excluding significant financing components (including
cases in which financing components in contracts not exceeding one year are not taken into account in
accordance with the standards). The increased or reversed amount of loss provisions generated therefrom shall
be included in the current profits and losses as impairment losses or gains.
14. Receivables financing
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value with their changes included in other comprehensive income: the Company's business
mode of managing the financial assets aims to collect the contract cash flow and sell them; the contract terms of
the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and
interest based on the amount of outstanding principal.
The receivables held by the Company transferred in the endorsed or discounted form that such transactions
are frequent and involve significant amounts and the management mode aims to collect the contract cash flow
and sell them in nature, are classified as financial assets measured at fair value with their changes included in
other comprehensive income in accordance with the relevant provisions of the Financial Instruments Standards.
15. Other receivables
Recognition methods and accounting treatment of expected credit losses of other receivables. The
Company measures the impairment loss by an amount equivalent to the expected credit loss within the next 12
months or over the entire duration, depending on whether the credit risk of other receivables has increased
significantly since the initial recognition. In addition to other receivables with individual credit risk assessment,
they are divided into different portfolios based on their credit risk characteristics:
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Portfolio name Basis for determining the portfolios Provision methods
Portfolio I Risk-free portfolio This portfolio is a risk-free account.
Portfolio II Aging portfolio The credit risk of the portfolio is characterized by the aging.
16. Contract assets
1. Recognition methods and standards for the contractual assets
The Company presents contractual assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Company's right to receive
consideration for goods or services transferred to customers (excluding receivables) is listed as contractual
assets.
2. The recognition method and accounting treatment for expected credit loss of contractual assets
The Company measures the loss provisions as per the amount of expected credit losses throughout the
whole duration by the use of simplified model for expected credit loss for receivables specified in Accounting
Standards for Business Enterprises No. 14 - Income, excluding significant financing components (including
cases in which financing components in contracts not exceeding one year are not taken into account in
accordance with the standards). The increased or reversed amount of loss provisions generated therefrom shall
be included in the current profits and losses as impairment losses or gains.
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for contractual assets including significant
financing components.
17. Inventories
1. Classification of inventories
The inventory includes the finished products or commodities held for sale in daily activities, the unfinished
products and the materials consumed in the production or in the provision of labor services, etc.
2. Pricing method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. Inventory system
Perpetual inventory system is the inventories.
4. Amortization method of low-value consumables and packaging materials
One-off write-off method is employed for both the low-value consumables and the packaging materials.
5. Recognition criteria and provision method for inventory revaluation reserve
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On the balance sheet date, the inventories are measured at the lower of cost and net realizable value, and
the inventory revaluation reserves are calculated at the difference between the cost of inventory category and
the net realizable value. The net realizable value of the inventories ready for sale is determined at the estimated
sale price of such inventories minus the estimated sales expenses and relevant taxes during normal production
and operation, and that of the inventories to be processed is determined at the estimated sale price of the
finished products minus the costs, sales expenses and relevant taxes estimated to be incurred up to completion
during normal production and operation. On the balance sheet date, the net realizable values are determined
separately and compared with the corresponding costs to determine the amount of withdrawal or reversal of
inventory revaluation reserve if a part of inventory is subject to the contractual price agreement and the rest is
not.
18. Assets held for sale
1. Recognition criteria and accounting treatment for non-current assets or disposal groups classified as held
for sale
The Company classifies group components (or non-current assets) as held for sale if they meet all of the
following conditions: (1) they are readily available for sale in their current state based on the practice of selling
such assets or disposal groups in similar transactions; and (2) it is highly likely that a sale will occur, a
resolution has been made on a sale plan, and a firm purchase commitment has been obtained (a firm purchase
commitment refers to a legally binding purchase agreement signed between an enterprise and another party,
which contains important terms such as transaction price, time, and sufficiently severe penalty for breach of
contract, so that the possibility of significant adjustment or cancellation of the agreement is extremely
small).The sale is expected to be completed within one year. The approval required by relevant authorities or
regulatory departments has been obtained in accordance with relevant regulations.
The Company adjusts the estimated net residual value of assets held for sale to reflect the net amount of its
fair value less selling expenses (but not exceeding the original book value of the asset held for sale). The
difference between the original book value and the adjusted estimated net residual value is recorded in the
current profit and loss as an asset impairment loss, and a provision for asset impairment held for sale is made at
the same time. The amount of asset impairment loss recognized for a disposal group held for sale shall first be
offset against the carrying amount of goodwill in the disposal group, and then the carrying amount of each non-
current asset in the disposal group that is subject to the measurement requirements of the Criteria shall be offset
in proportion to its share.
If the net amount of the fair value of non-current assets held for sale less selling expenses increases on
subsequent balance sheet dates, the amount previously written down shall be restored and reversed within the
amount of the asset impairment loss recognized after classification as held for sale, and the reversed amount
shall be included in the current profit and loss. Impairment losses recognized before the asset is classified as
held for sale shall not be reversed. If the net amount of the fair value of a disposal group held for sale less
selling expenses increases on subsequent balance sheet dates, the amount previously written down shall be
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restored and reversed within the amount of the asset impairment loss recognized for non-current assets in
accordance with the measurement requirements of the Criteria after classification as held for sale, and the
reversed amount shall be included in the current profit and loss. The carrying amount of goodwill that has been
written off and the impairment losses on non-current assets subject to the measurement requirements of the
Criteria recognized before they are classified as held for sale shall not be reversed. The amount of subsequent
reversal of impairment losses recognized by a disposal group held for sale shall be increased in proportion to the
carrying amounts of various non-current assets in the disposal group that are subject to the measurement
requirements of the Standard, except goodwill. If an enterprise loses control over a subsidiary due to sales of its
investment in the subsidiary or other reasons, regardless of whether the enterprise retains part of the equity
investment after the sale, it shall classify the investment in the subsidiary as a whole as held for sale in the
parent company's individual financial statements and classify all assets and liabilities of the subsidiary as held
for sale in the consolidated financial statements when the investment in the subsidiary to be sold meets the
conditions for classification as held for sale.
2. Criteria for determining and reporting discontinued operations
Discontinued operations refer to separately identifiable components of an enterprise that meet any of the
following conditions and have been disposed of or classified as held for sale: (1) the component represents an
independent major business or a separate major operating area; (2) the component is part of a related plan to
dispose of an independent major business or a separate major operating area; or (3) the component is a
subsidiary acquired specifically for resale.
The definition of discontinued operations includes the following three aspects:
(1) The discontinued operations shall be a separately identifiable component of the enterprise. The
operations and cash flows of this component can be clearly distinguished from other parts of the enterprise
when the enterprise is operated and the financial statements are prepared.
(2) The discontinued operations must be of a certain scale. The discontinued operations shall represent a
separate principal business or a separate major operating area, or be part of a related plan to dispose of a
separate principal business or a separate major operating area.
(3) The discontinued operations must meet certain timing requirements. A component that meets the
definition of discontinued operations shall fall into one of the following two situations: the component has been
disposed of before the balance sheet date, including being sold and discontinued (such as shut down or
scrapped); the component has been classified as held for sale before the balance sheet date.
19. Debt investment
None.
20. Other debt investment
None.
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21. Long-term receivables
None.
22. Long-term equity investment
1. Determination of investment costs
(1) If the investment cost is incurred in consolidation under the same control in which case the combining
party pays the combination consideration in cash, by transferring the non-cash assets, undertaking the debts or
issuing the equity securities, the initial investment cost shall be determined on the basis of the share of the
owner's equity of the combined party in the book value of the ultimate controlling party's consolidated financial
statements on the combination date. For the difference between the initial investment cost of long-term equity
investment and the book value of the consideration paid for combination or the total face value of the issued
shares, the capital reserve (capital premium or share premium) shall be adjusted. If the capital reserve is
insufficient to be offset, the retained earnings shall be adjusted.
If a consolidation under the same control is realized step by step, the initial investment cost shall be
determined on the basis of the share of the owner's equity of the combining party in book that is obtained from
the combined party on the combination date and calculated at shareholding ratio. For the difference between the
initial investment cost and the sum of the book value of the original long-term equity investment plus the book
value of the consideration newly paid for acquiring further shares on the combination date, the capital reserve
(capital premium or share premium) shall be adjusted. If the capital reserve is insufficient to be offset, the
retained earnings shall be adjusted.
(2) If the investment cost is incurred in the consolidation under different control, the initial investment cost
shall be determined as the fair value of the consideration paid for combination on the purchase date.
(3) Investment costs other than those incurred in consolidation: The initial investment cost shall be the
purchase price paid actually if the investment is obtained by paying cash, the fair value of the issued equity
securities if by issuing the equity securities, and the value specified in the investment contract or agreement in
case of investment from an investor (unless the unfair value is specified in the contract or agreement).
2. Subsequent measurement and recognition methods for profits and losses
The long-term equity investment that the Company has the control over the investee shall be calculated
with cost method in its individual financial statement; those under the same control or significant influence shall
be calculated with equity method.
If the cost method is applied, the long-term equity investments shall be priced at the initial investment cost.
The cash dividends or profits declared to be distributed by the investee other than those that have been declared
but not distributed and included in the price or consideration paid actually when the investment is obtained shall
be recognized as the current investment income, and it is necessary to consider whether the long-term
investment is impaired in accordance with the relevant policy of asset impairment.
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When the equity method is applied, if the initial investment cost of a long-term equity investment is greater
than the share of fair value of identifiable net assets entitled from the investee at the time of investment, it shall
be included in the initial investment cost of the long-term equity investment; otherwise, the difference shall be
included in the current profits and losses and the cost of long-term equity investment shall be adjusted.
When the equity method is applied, the profits and losses on investment shall be recognized and the book
value of the long-term equity investment shall be adjusted according to share of the net profits and losses that
shall be entitled or shared and have been realized by the investee after the long-term equity investment is
obtained. When the share of the net profit and loss entitled from the investee is recognized, the proportion
attributable to the investor shall be calculated at the shareholding ratio after offsetting the profits and losses of
internal transactions with associated enterprises and joint ventures (full amount shall be recognized if the losses
of internal transactions are the asset impairment losses) in light of the accounting policies and period of the
Company on the basis of the fair value of the identifiable assets of the investee when the investment is obtained,
and the net profit of the investee shall be recognized after adjustment. The portion to be distributed shall be
calculated with reference to the profits or cash dividends declared to be distributed by the investee, and the book
value of the long-term equity investment shall be reduced accordingly. If a net loss of the investee confirmed by
the Company, the book value of the long-term equity investment, as well as other long-term equity investment
which form the net investment of the investment units shall be written down until zero limits, except that the
Company has to undertake obligations of additional losses. The book value of the long-term equity investment
was adjusted and included in the owner's equity for other changes in the owner's equity other than the net profits
and losses of the investee.
3. Basis for determination of control over and significant influence on the investee
Control refers to having the power over the investee, being entitled to variable returns by participating in
the relevant activities of the investee and able to influence the amount of return by exercising the power over
the investee. Significant influence refers to that the investor has the right to participate in decision-making in
terms of the financial and operating policies of the investee but has no right to control or jointly control the
formulation of these policies with other parties.
4. Disposal of long-term equity investments
(1) Partial disposal of long-term equity investments into subsidiaries without loss of control
The difference between the disposal price and the corresponding book value of the disposed investment
shall be recognized as the current investment income in case of partial disposal of long-term equity investments
into subsidiaries without loss of control.
(2) Loss of control over subsidiaries due to partial disposal of long-term equity investments or other
reasons
If the control over the subsidiaries is lost due to partial disposal of long-term equity investments or other
reasons, the book value of the long-term equity investment corresponding to the sold equity shall be carried
forward for the disposed equity, and the difference between the sales price and the book value of the disposed
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long-term equity investment shall be recognized as investment income (loss). In addition, the remaining equity
shall be recognized as long-term equity investment or other related financial assets at its book value. The
remaining equity after disposal that has joint control or significant influence on the subsidiaries shall be subject
to the accounting treatment in accordance with the relevant regulations on the conversion from the cost method
to the equity method.
5. Methods for impairment test and provision of impairment reserve
If there is any objective evidence showing that the investments into subsidiaries, associated enterprises and
joint ventures are impaired on the balance sheet date, the provision of impairment reserve shall be made
accordingly based on the difference between the book value and the recoverable amount.
23. Investment property
Measurement model of investment property
Measurement with cost method
Depreciation or amortization method
1. Investment property includes leased land use rights, land use rights held and ready to be assigned after
appreciation, and leased buildings.
2. Investment property is measured initially at cost and subsequently with cost model. The provision for
depreciation and amortization of the investment property are made in the way as used for fixed assets and
intangible assets. If there is any sign showing that the investment property is impaired on the balance sheet date,
the provision of impairment reserve shall be made accordingly based on the difference between the book value
and the recoverable amount.
See Note III. (XXIII). "Long-term Assets Impairment" for details of the methods for impairment test and
provision of impairment reserve applicable to investment property.
If the real estate for private use or inventory is converted to an investment property or the investment
property is converted to a real estate for private use, the book value before such conversion shall be deemed as
the entry value after the conversion.
If the purpose of an investment property is changed to private use, this investment property shall be
converted into a fixed or intangible asset from the date of change. If the purpose of a property is changed to rent
gains or capital appreciation from private use, the fixed asset or intangible asset shall be converted into an
investment property from the date of change. If the purpose of a property is changed to rent gains or capital
appreciation from private use, the fixed asset or intangible asset shall be converted into an investment property
from the date of change. If any asset is converted into an investment property measured with the cost model, the
book value before the conversion shall be deemed as the entry value after the conversion. If any asset is
converted into an investment property measured with the fair value model, the fair value on the conversion date
shall be deemed as the entry value after the conversion.
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An investment property shall be derecognized if this investment property is disposed of or permanently
retired, and it is expected that no economic benefits can be obtained from its disposal. The disposal income
from the sale, transfer, scrapping or damage of an investment property shall be included in the current profits
and losses after deducting its book value and relevant taxes and dues.
24. Fixed assets
(1) Conditions for recognition
Fixed assets refer to the tangible assets that are held for production of goods, provision of labor services,
lease or operation management and of which the service life exceeds one fiscal year.
Fixed assets shall be recorded at the actual cost upon the acquisition and subject to the provision for
straight-line depreciation from the next month following the date when they are ready for use as intended.
(2) Depreciation method
Category Depreciation method Depreciable life Residual rate Annual depreciation rate
Houses and buildings Straight-line method 20-40 years 5 2.375%-4.75%
Machinery and equipment Straight-line method 10 years 5 9.50
Transportation equipment Straight-line method 5 years 5 19.00
Tooling Straight-line method 5 years 5 19.00
Electronics and other equipment Straight-line method 5 years 5 19.00
25. Construction in progress
1. The construction in progress shall be transferred to fixed assets at the actual cost of the project when it is
ready for use as intended. If a product under construction has been ready for use as intended but has not
undergone final settlement of account, this project shall be transferred to fixed assets at the estimated value first.
After final settlement of account is made, the original temporary estimated value shall be adjusted according to
the actual cost without adjustment of depreciation previously accrued.
2. If there is any sign showing that a project under construction is impaired on the balance sheet date, the
provision for impairment shall be made accordingly at the difference between the book value and the
recoverable amount.
26. Borrowing costs
1. Recognition principle for capitalizing borrowing cost
Borrowing costs occurred by the Company that may be directly attributable to the acquisition or
construction of assets eligible for capitalization, are capitalized and accounted in the cost of relevant assets;
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while other borrowing costs are recognized as expenses and accounted into current profits and losses whenever
occurred.
2. Capitalization period of borrowing costs
(1) The borrowing costs shall be capitalized if they meet the following conditions: 1) Asset expenditures
have been incurred; 2) Borrowing costs have been incurred; 3) Acquisition, construction or production activities
necessary for the assets to reach the usable or marketable state as intended have begun.
(2) The capitalization of borrowing costs shall be discontinued if the acquisition, construction or
production of an asset that meets the conditions for capitalization is abnormally interrupted for more than 3
successive months. The borrowing costs incurred during the period of interruption shall be recognized as
current expenses until the acquisition, construction or production of assets is resumed.
(3) The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets
that meet the conditions for capitalization reaches the intended usable or marketable state.
3. Capitalized amount of borrowing costs
If special borrowings are for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount of interest to be capitalized shall be determined as the interest expenses
actually incurred (including the amortization of discounts or premiums determined with the effective interest
rate method) in the current period of the special borrowing minus the interest income from the unused
borrowings that have been deposited in the bank or the profit from temporary investment by the unused
borrowings. If general borrowings are used for the purpose of purchase, construction or production of assets that
meet the conditions for capitalization, the amount of interest to be capitalized shall be determined as the
weighted average of asset expenditure with accumulated asset expenditure exceeding special borrowing
multiplied by capitalization rate of the general borrowing occupied.
27. Biological assets
None.
28. Oil and gas assets
None.
29. Intangible assets
(1) Service life and its basis for determination, estimation, amortization method or review procedure
1. Intangible assets of the Company include land usage right, software, patent rights and non-patent
technologies, etc., and are initially measured at cost.
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2. Intangible assets with limited service life shall be systematically and reasonably amortized according to
the expected realization mode of economic benefits related within the service life, and in case the expected
realization mode cannot be reliably determined, the straight-line method shall be adopted for amortization.
The land usage right shall be averagely amortized within the remaining service life (generally 50 years),
the software shall be averagely amortized within 3-5 years, and the patent rights and non-patent technologies
within 5-10 years.
3. In case of evidence of impairment of intangible assets with defined service life on the balance sheet date,
corresponding provision for impairment shall be made according to the difference between the book value and
the recoverable amount; For intangible assets with uncertain service life and intangible assets that have not
reached the serviceable state, the impairment tests shall be carried out every year, whether there are signs of
impairment or not.
(2) Scope of R&D expenditures and related accounting treatment methods
Research stage expenditures of internal R&D projects shall be included in the current profits and losses at
the time of occurrence. In case following conditions have been met at the same time, expenditure of internal
R&D projects in development stage shall be recognized as intangible assets: (1) It is technically feasible to
complete the intangible assets for adoption and sale; (2) There is the intention to complete the intangible assets
for adoption and sale; (3) There exist ways for intangible assets to generate economic benefits, including the
evidence that there is a market for products produced by using the intangible assets or for the intangible assets.
If the intangible assets will be used internally, it can be proved that they are useful; (4) There are sufficient
technical, financial and other resources to support the development of the intangible assets and to use or sell the
intangible assets; (5) Expenditure of the intangible assets in development stage can be measured reliably.
30. Long-term assets impairment
The enterprise shall judge whether there is any sign of possible assets impairment on the balance sheet date.
Goodwill arising from consolidation and intangible assets with uncertain service life shall be tested for
impairment every year, no matter whether there is any sign of impairment.
In case of following signs, the assets may be impaired:
(1) Market price of assets falls sharply in the current period, which is significantly higher than the expected
decline due to time or normal use; (2) There are significant changes in current and future economic,
technological or legal environment in which the enterprise operates and the market where assets are located,
bringing adverse effects on the enterprise; (3) The market interest rate or other market return on investment has
been increased in the current period, affecting the discount rate of the enterprise to calculate the present value of
the expected future cash flow of the assets and resulting in a significant decrease in the recoverable amount of
the assets; (4) There exists evidence showing that the assets have become obsolete or the entity has been
damaged; (5) Assets have been or will be idle, terminated or planned to be disposed in advance; (6) Evidence in
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the internal report of the enterprise shows that economic performance of assets has been or will be lower than
the expected, for instance, the net cash flow arising from assets or the realized operating profit (or loss) is far
lower (or higher) than the expected amount, etc. (7) Other indications showing that assets may have been
impaired.
In case of signs of assets impairment, corresponding recoverable amount shall be estimated.
Recoverable amount shall be determined based on the higher of the net amount of fair value of assets
minus the disposal expenses and the present value of expected future cash flow of assets.
Disposal expenses include legal expenses, relevant taxes and handling fees related to disposal of assets as
well as direct expenses incurred to make the assets marketable.
Present value of expected future cash flow of assets shall be determined by selecting an appropriate
discount rate based on the expected future cash flow generated during continuous use and final disposal of the
assets. To estimate present value of future cash flow of assets, measures shall be taken to comprehensively
consider factors as the expected future cash flow, service life and discount rate of the assets.
In case of measurement result of recoverable amount showing that recoverable amount of the asset is lower
than its book value, the book value shall be written down to the recoverable amount, and the written down
amount shall be recognized as the asset impairment loss and included in the current profits and losses; besides,
corresponding provision for asset impairment shall be made at the same time.
31. Long-term deferred expenses
Long-term deferred expenses shall be recorded according to the actual amount, and shall be averagely
amortized in the benefit period or the specified period. In case future accounting period cannot benefit from
long-term deferred expenses, all unamortized value of the item shall be transferred into the current profits and
losses.
32. Contractual liabilities
The Company presents contractual assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Company's obligation to transfer
commodities or services to customers for consideration received or receivable by the Company is listed as
contract liability.
33. Employee compensation
(1) Accounting treatment of short-term compensation
During the accounting period when employees provide service for the Company, the actual short-term
remuneration is recognized as liabilities and included in the current profits and losses or the relevant assets cost.
Where, non-monetary welfare shall be measured at fair value.
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(2) Accounting treatment of post-employment benefits
Post-employment benefit mainly includes basic endowment insurance, unemployment insurance and so on.
Post-employment benefit plan includes defined contribution plan. Where the defined contribution plan is used,
the corresponding amount shall be recorded into relevant asset costs or current profits and losses.
(3) Accounting treatment of dismissal benefits
In case the Company terminates labor relationship with employees prior to the expiration of employee's
labor contract, or offers compensation to encourage employees to accept the layoff voluntarily, it shall confirm
the compensation for termination of labor relationship with employees and include the compensation amount in
the current profits and losses at the earlier time when it fails to unilaterally withdraw labor relationship
termination plan or layoff proposal and confirms costs related to reorganization involving the payment of
dismissal benefits.
(4) Accounting treatment of other long-term employee benefits.
None.
34. Estimated liabilities
None.
35. Share-based payment
1. Types of share-based payment
It includes equity-settled share-based payment and cash-settled share-based payment
2. Determination method of fair value of equity instrument
(1) In case of active market, it shall be determined according to the quoted price in the active market.
(2) In case of no active market, it shall be determined by adopting valuation technologies, including
referring to prices used in recent market transactions by parties familiar with the situation and willing to trade,
current fair value of other financial instruments that are essentially the same, discounted cash flow method and
option pricing model.
3. Basis for confirming the best estimate of vesting equity instruments
Estimation shall be based on the latest available changes on vesting employee number and other
subsequent information.
4. Accounting treatment of implementing, modifying and terminating share-based payment plan
(1) Equity-settled share-based payment
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Equity-settled share-based payment in exchange for employee services that can be exercised immediately
after the grant shall be included in the relevant costs or expenses according to the fair value of equity
instruments on the grant date, and the capital reserve shall be adjusted accordingly. For equity-settled share-
based payment in exchange for employee services only after completing service within the waiting period or
reaching the specified performance conditions, it is required to include the services obtained in the current
period into relevant costs or expenses according to the best estimate of number of vesting equity instruments
and the fair value on the grant date of equity instruments on each balance sheet date within the waiting period,
and the capital reserve shall be adjusted accordingly.
For equity-settled share-based payment in exchange for other party's services, if the fair value of other
party's services can be reliably measured, it shall be measured based on the fair value of other party's services
on the acquisition date; In case the fair value of other party's services cannot be reliably measured, but the fair
value of equity instruments can be reliably measured, it shall be measured based on the fair value of equity
instruments on the acquisition date and shall be included in relevant costs or expenses; besides, the owner's
equity shall be increased accordingly.
(2) Cash-settled share-based payment
Cash-settled share-based payment in exchange for employee services that can be exercised immediately
after the grant shall be included in relevant costs or expenses according to the fair value of the liabilities
undertaken by the Company on the grant date, and the liabilities shall be increased accordingly. For cash-settled
share-based payment in exchange for employee services only after completing service within the waiting period
or reaching the specified performance conditions, it is required to include the services obtained in the current
period into relevant costs or expenses and relevant liabilities according to the best estimate of vesting situation
and the fair value of the liabilities assumed by the Company on each balance sheet date within the waiting
period.
(3) Modification and termination of share-based payment plan
In case of increase of fair value of the equity instruments granted due to modification, the Company shall
recognize the increase of services obtained based on the increase of fair value of equity instruments; In case of
increase of the number of equity instruments granted due to modification, the Company shall recognize the fair
value of the increased equity instruments as the increase of services obtained accordingly. Besides, if the
Company modifies vesting conditions in a way beneficial to employees, it shall consider all modified vesting
conditions when dealing with the vesting conditions.
In case of decrease of fair value of the equity instruments granted due to modification, the Company shall
continue to recognize the amount of services obtained based on the fair value of equity instruments on the grant
date without considering the decrease of fair value of equity instruments; In case of decrease of the number of
equity instruments granted due to modification, the Company shall recognize the decreased part as the
cancellation of granted equity instruments; Besides, if the Company modifies vesting conditions in a way not
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beneficial to employees, it shall not consider the modified vesting conditions when dealing with vesting
conditions.
In case the Company cancels or settles the granted equity instruments within the waiting period (except
those cancelled due to failure to meet the vesting conditions), the cancellation or settlement shall be accelerated
for vesting, and the amount originally recognized in the remaining waiting period shall be recognized
immediately.
36. Preferred shares, perpetual bonds and other financial instruments
None.
37. Revenue
Disclosing the accounting policies adopted for revenue recognition and measurement by business type
1. Accounting policies adopted for revenue recognition and measurement
(1) Revenue recognition
The Company's revenue mainly includes sales revenue of intelligent controller, lithium battery, motor and
control system.
The Company has fulfilled performance obligation in the Contract, that is, recognizing revenue when the
customer obtains the control right of relevant commodities. Obtaining of the control right of relevant
commodities means to be able to dominate the use of the commodities and obtain almost all economic benefits
arising therefrom.
2. The Company shall judge the nature of relevant performance obligations as "performance obligations
fulfilled in a certain period" or "performance obligations fulfilled at a certain time point" based on relevant
provisions of revenue standards, and shall confirm revenue according to the following principles respectively.
In case the Company meets one of the following conditions, it shall fulfill the performance obligations
within a certain period of time:
① Customers obtain and consume economic benefits arising from performance of the Company during the
Company's performance of the Contract.
② Customers can control the assets under construction during the Company's performance of the Contract.
③ Assets of the Company during the performance of the Contract are irreplaceable, and the Company
shall be entitled to collect money for the performance part completed so far in the whole contract period.
For performance obligations fulfilled within a certain period of time, the Company shall recognize revenue
according to the performance progress within that period, except that the performance progress cannot be
reasonably determined. The Company shall consider the nature of commodities, and shall determine the proper
performance progress by adopting the output method or the input method.
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For performance obligations fulfilled at a certain time point rather than in a certain period, the Company
shall recognize revenue at the time when customers obtain the control right of relevant commodities.
When judging whether customers have obtained the control right of relevant commodities, the Company
considers the following signs:
① The Company shall be entitled to immediately collect revenues from commodities, which means that
customers have the obligation to pay for commodities immediately.
② The Company has transferred the legal ownership of commodities to customers, which means that
customers have obtained the legal ownership of commodities.
③ The Company has transferred commodities in kind to customers, which means that customers have
possessed commodities in kind.
④ The Company has transferred main risks and rewards related to the ownership of commodities to
customers, which means that customers have obtained main risks and rewards related to the ownership of
commodities.
⑤ Customers have accepted the commodities.
⑥ Other indications that customers have obtained the control right of commodities.
(3) Measurement of revenue
The Company shall measure revenue according to the transaction price allocated to each individual
performance obligation. In determining the transaction price, the Company shall consider the influence of
variable consideration, significant financing components in the Contract, non-cash consideration, consideration
payable to customers as well as other factors.
1 Variable consideration
The Company shall determine the best estimate of variable consideration according to the expected value
or the most likely amount, but the transaction price including the variable consideration shall not exceed the
accumulated recognized revenue that will not be significantly reversed when relevant uncertainty is eliminated.
When evaluating whether the accumulative recognized revenue is unlikely to be significantly reversed, the
enterprise shall further consider the possibility and proportion of revenue reversal.
2 Significant financing components
In case of significant financing components in the Contract, the Company shall determine the transaction
price according to the amount payable in cash when assuming that customers obtain the control right of
commodities. Difference between the transaction price and the contract consideration shall be amortized by
adopting the effective interest rate method during the contract period.
3 Non-cash consideration
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In case customers pay non-cash consideration, the Company shall determine the transaction price
according to the fair value of the non-cash consideration. In case the fair value of non-cash consideration cannot
be reasonably estimated, the Company shall indirectly determine the transaction price by referring to the
separate selling price of commodities for transferring commodities to customers that it promises.
④ Consideration payable to customers
Consideration payable to customers shall be written down against the transaction price, and the current
income shall be offset at the later of confirming relevant income or paying (or promising to pay) customer's
consideration, except that the consideration payable to customers is to obtain other clearly distinguishable
commodities from customers.
In case the consideration payable by an enterprise to customers is to obtain other clearly distinguishable
commodities from customers, the purchased commodities shall be confirmed in a way consistent with other
purchases of the enterprise. In case the consideration payable by an enterprise to customers exceeds the fair
value of a clearly distinguishable commodity obtained from the customer, the excess amount shall be used to
offset the transaction price. In case the fair value of clearly distinguishable commodities obtained from
customers cannot be reasonably estimated, the enterprise shall offset the transaction price with the consideration
payable to customers in full.
2. The specific policies of revenue recognition of the Company are as follows:
In case the sales contract between the Company and customers has been deemed as a performance
obligation fulfilled at a certain time point, the specific revenue recognition method shall be formulated
according to the actual situation of the Company's product sales as follows:
Domestic sales: ① The customer picks up the goods in cash. After the payment and delivery, it is
considered that the customer has obtained the control of the relevant goods, and the Company has recognized
the sales revenue; ② If the advance payment is used for settlement, and the other party's customer confirmation
receipt is obtained after the delivery, it is considered that the customer has obtained the control of the relevant
commodities, and the Company has recognized the sales revenue; ③ If the credit sale is adopted according to a
certain payment period, within which the customer settles, and after the delivery, the other party's customer
confirmation receipt is obtained, it is considered that the customer has obtained the control of the relevant goods,
and the Company has recognized the sales revenue.
Foreign sales: the Company shall deliver commodities according to the signed order, hold special export
invoice, delivery note and other original documents for customs clearance and export, pass customs audit,
complete export declaration procedures, obtain the customs declaration documents as the point of transfer of
control of the relevant goods, and recognize the sales revenue by recording the revenue based on the delivery
order, special export invoice and customs declaration form.
The same type of business adopting different operating models involving different revenue recognition methods
and measurement methods
None.
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38. Contractual costs
Contractual costs are divided into contract performance costs and contract acquisition costs.
The costs incurred by the Company to perform a contract shall be recognized as an asset as contract
performance costs if the following conditions are met at the same time:
1. The costs are directly related to a current or anticipated contract, including direct labor, direct materials,
manufacturing overhead (or similar costs), costs clearly borne by the client, and other costs incurred solely for
the contract;
2. The cost increases the resources that the enterprise will use to fulfill its performance obligations in the
future;
3. The costs are expected to be recovered.
The Company recognizes the incremental costs incurred to obtain a contract as an asset if it expects to
recover the incremental costs incurred to obtain the contract; however, if the asset is amortized for no more than
one year, it may be included in the current profit and loss when incurred.
Assets related to contractual costs are amortized on the same basis as revenue from goods or services
related to the asset.
If the carrying amount of an asset related to contractual costs exceeds the difference between the following
two items, the Company will make an provision for impairment for the excess and recognize it as an asset
impairment loss:
1. The remaining consideration expected to be obtained from the transfer of goods or services related to the
asset;
2. The estimated costs to be incurred for the transfer of the relevant goods or services.
If the above-mentioned provision for asset impairment is subsequently reversed, the book value of the asset
after the reversal shall not exceed the book value of the asset on the reversal date assuming no provision for
impairment was made.
39. Government subsidies
1. Government subsidies include government subsidies related to assets and government subsidies related
to income.
2. In case the government subsidies can be included in monetary assets, they shall be measured according
to the amount received or receivable; In case the government subsidies can be classified as non-monetary assets,
they shall be measured at fair value, and once the fair value cannot be obtained reliably, they shall be measured
in nominal amount.
3. Government subsidies calculated by adopting the gross method:
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(1) Government subsidies related to assets shall be recognized as deferred income and included in profits
and losses by stages in a reasonable and systematic way within the service life of relevant assets. In case
relevant assets are sold, transferred, scrapped or damaged prior to the end of their service life, the balance of
relevant deferred income that has not been allocated shall be transferred to the profits and losses of the current
period of asset disposal.
(2) Government subsidies related to income and used to compensate related expenses or losses in the later
period shall be recognized as deferred income, and shall be included in the current profits and losses during the
period when related expenses are recognized; subsidies used to compensate relevant expenses or losses incurred
shall be directly included in the current profits and losses.
4. Government subsidies calculated by adopting the net method:
(1) Government subsidies related to assets shall be used to offset the book value of relevant assets;
(2) Government subsidies related to income and used to compensate related expenses or losses in the later
period shall be recognized as deferred income, and shall be used to offset related costs when related expenses
are recognized; subsidies used to compensate relevant expenses or losses incurred shall be directly used to
offset related costs.
5. For government subsidies including asset-related part and income-related part, measures shall be taken
to distinguish different parts and carry out accounting treatment separately; Part difficult to distinguish shall be
classified as government subsidies related to income.
6. The government subsidies related to the daily activities of the Company shall be included into other
incomes or used to write down related costs and expenses in accordance with the essence of economic
operations; the government subsidies independent of the daily activities shall be included into the non-operating
income and expense.
7. For discount interest of preferential policy loans to be obtained by the Company, two measures shall be
adopted, including that the Ministry of Finance allocates the discount funds to the lending banks and that the
Ministry of Finance allocates the discount funds to the Company:
(1) In case the Ministry of Finance allocates the discount funds to the lending banks, and the lending bank
provides loans to the Company at preferential policy interest rate, the Company shall choose the following
methods for accounting treatment:
1) Taking the loan amount actually received as the entry value of the loan, and calculating relevant
borrowing costs based on the loan principal and the preferential policy interest rate.
2) Taking the fair value of loan as the entry value, calculate the borrowing costs by adopting the effective
interest rate method, and recognizing the difference between the actual received amount and the fair value of the
loan as deferred income. Deferred income shall be amortized by adopted the effective interest rate method
within the duration of loan to offset relevant borrowing costs.
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(2) In case the Ministry of Finance allocates the discount funds to the Company, the Company will write
down the corresponding discount interest against relevant borrowing costs.
40. Deferred tax assets/deferred tax liabilities
1. It is required to calculate and recognize the deferred tax assets or liabilities according to the difference
between the book value of the assets and liabilities and corresponding tax base (in case the tax base of items not
recognized as assets and liabilities can be determined according to the provisions of the tax law, the difference
between the tax base and their book amount shall be adopted) as well as the applicable tax rate during the period
of expected recovery of the assets or settlement of the liabilities.
2. Recognition of deferred tax assets shall be limited to the taxable income that is likely to be obtained to
offset temporary deductible differences. On the balance sheet date, if there is conclusive evidence that it is
likely to obtain sufficient taxable income in the future periods to offset the deductible temporary differences, the
deferred tax assets not recognized in the previous accounting periods shall be recognized.
3. The book value of deferred tax assets shall be reviewed on the balance sheet date. In case it is
impossible to obtain enough taxable income to offset the benefits of the deferred tax assets in the future, the
book value of the deferred tax assets shall be written down. If it is likely to obtain enough taxable income, the
write down amount shall be reversed.
4. The current income tax and deferred tax of the Company shall be recognized as income tax expense or
income, and shall be included in the current profits and losses, except for income tax arising from the following
circumstances: (1) consolidation; (2) transactions or matters directly recognized in the owner's equity.
41. Lease
(1) Accounting treatment of lease as the lessee
As the lessee, the Company recognizes the right-of-use assets and lease liabilities for the lease on the
beginning date of the lease term excluding short-term leases and leases of low-value assets to which the
simplified treatment applies.
After the starting date of the lease term, the Company uses the cost model to make subsequent
measurement of the right-of-use assets. The provision for the depreciation of the right-of-use assets shall be
made with reference to the relevant depreciation provisions of the Accounting Standards for Business
Enterprises No. 4 - Fixed Assets. If the lessee can reasonably determine that it will obtain the ownership of the
leased assets upon the expiration of the lease term, provision for depreciation shall be made within the
remaining service life of the leased assets. If it is not reasonable to be certain that the lessee will obtain the
ownership of the leased assets at the expiry of the lease term, the leased assets shall be calculated and
withdrawn as depreciation over the shorter one of the lease term or the remaining service life. The Company
determines whether the right-of-use assets are impaired in accordance with the Accounting Standards for
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Business Enterprises No. 8 - Asset Impairment, and carries out accounting treatment for the identified
impairment losses.
The Company calculates the interest expense of the lease liabilities in each period of the lease at the fixed
periodic interest rate, which is included in the current profits and losses. If the cost shall be included in the cost
of relevant assets in accordance with the Accounting Standards for Business Enterprises No. 17 - Borrowing
Costs and other standards, such provisions shall prevail.
For short-term leases and low-value asset leases, the Company shall choose not to recognize right-of-use
assets and lease liabilities, and include the lease payments for short-term leases and low-value asset leases in the
relevant asset cost or current profit and loss according to the straight-line method during each period of the lease
term.
(2) Accounting treatment of lease as the lessor
During each period of the lease term, the Company as the lessor shall adopt the straight-line method to
recognize the rental revenue from operating lease as rental income. The lessor shall capitalize the initial direct
cost related to operating lease, and amortizes and includes such cost into the current profits and losses by
installment according to the same recognition base of the rental revenue during the lease term.
As for the fixed assets subject to operating leases, the Company shall calculate the depreciation of it by
adopting depreciation policy for similar assets. As for other leased assets, systematic and reasonable methods
shall be adopted for its amortization according to the Accounting Standards for Business Enterprises applicable
to this asset. The Company determines whether the operating lease assets are impaired in accordance with
Accounting Standards for Business Enterprises, No. 8 - Asset Impairment, and carries out corresponding
accounting treatment.
42. Other important accounting policies and accounting estimation
Repurchase shares
If the Company or its subsidiaries shares are acquired due to the reduction of registered capital or reward
of employees, the amount actually paid shall be treated as the treasury share, and the record shall be made for
reference. If the repurchase shares are cancelled, the capital reserve will be offset by the difference between the
total par value of the cancelled shares and the number of cancelled shares and the amount paid for the actual
repurchase. If the capital reserve is insufficient to be offset, the retained earnings shall be offset; If the
repurchase shares are awarded to the employees of the Company as equity-settled share-based payment, when
the employees exercise the right to purchase the shares of the Company or its subsidiaries and receive the price,
the cost of treasury shares delivered to the employees and the accumulated amount of capital reserve (other
capital reserves) during the waiting period shall be resold, and the capital reserve (capital premium or share
premium) shall be adjusted according to the difference.
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43. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
Applicable □ Not applicable
Unit: RMB
Name of the statement item Amount
Contents and reasons of the accounting policy change
that is significantly affected affected
Deferred tax assets 20,769,946.22
"Accounting practice for deferred income taxes related to assets and
Deferred tax liabilities 19,947,728.52
liabilities generated by individual transactions which shall not be
exempted from initial confirmation" in Interpretation No. 16 of Retained earnings 710,522.81
Accounting Standards for Business Enterprises (CK [2022] No. 31)
Minority shareholders' equity 111,694.89
(hereinafter referred to as "Interpretation No. 16")
Income tax expenses -426,183.99
The Company began to implement the relevant provisions of Interpretation No. 16 of Accounting
Standards for Business Enterprises (CK [2022] No. 31) from January 1, 2023, and adjusted the beginning
retained earnings and other relevant financial statement items of the earliest period reported in the financial
statements by the cumulative impact amounts.
In response to the implementation of this provision, the Company retroactively adjusted the deferred
income tax assets of RMB 20,769,946.22, deferred income tax liabilities of RMB 19,947,728.52, retained
earnings of RMB 710,522.81, minority shareholders' equity of RMB 111,694.89, and income tax expense for
2022 of RMB -426,183.99 in the consolidated financial statements as of December 31, 2022.
(2) Important accounting estimation changes
□ Applicable Not applicable
(3) Relevant items in financial statements at the beginning of 2023 when such adjustments were made for the first time for
initial implementation of the new accounting standard
□ Applicable Not applicable
44. Others
None.
VI. Tax
1. Main tax types and tax rate
Tax type Tax basis Tax rate
VAT (value-added tax) Revenue from sales of goods 13%、9%、6%、3%、0%
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Urban maintenance and construction tax Paid turnover tax amount 7%、5%
Education surcharge Paid turnover tax amount 3%
Please refer to the different corporate
Corporate income tax Taxable income income tax rates, subject of taxation and
their tax rate disclosures below for details.
Where there are any taxpayers with different corporate income tax rates, details shall be disclosed.
Name of taxpayer Corporate income tax rate
Shenzhen Topband Co., Ltd. 15.00%
Shenzhen Topband Software Technology Co., Ltd. 15.00%
Shenzhen Topband Automation Technology Co., Ltd. 15.00%
Shenzhen Topband Battery Co., Ltd. 15.00%
Chongqing Topband Industrial Co., Ltd. 25.00%
Topband (Hong Kong) Co., Ltd. 16.50%
Huizhou Topband Electrical Technology Co., Ltd. 15.00%
TOPBANDINDIAPRIVATELIMITED 25.17%
Shenzhen YAKO Automation Technology Co., Ltd. 15.00%
Shenzhen Allied Control System Co., Ltd. 15.00%
Shenzhen Yansheng Software Co., Ltd. 15.00%
Ningbo Topband Intelligent Control Co., Ltd. 25.00%
Shenzhen Meanstone Intelligent Technology Co., Ltd. 20.00%
Hangzhou Zhidong Motor Technology Co., Ltd. 20.00%
Taixing Ninghui Lithium Battery Co., Ltd. 15.00%
Shenzhen Topband Supply Chain Services Co., Ltd. 25.00%
Shenzhen Topband Investment Co., Ltd. 25.00%
Shenzhen Spark IOT Technology Co., Ltd. 20.00%
Shenzhen Zhongli Consulting Co., Ltd. 20.00%
Shenzhen Tunnu Innovation Co., Ltd. 20.00%
TUNNUINNOVATION,INC 21.00%
Shenzhen Senxuan Technology Co., Ltd. 20.00%
Shenzhen Tengyi Industrial Co., Ltd. 20.00%
Topband (Qingdao) Intelligent Control Co., Ltd. 20.00%
Shenzhen Topband Automotive Electronics Co., Ltd. 20.00%
TOPBANDJAPANCo.,Ltd 23.20%
Tunnu Innovation (Hong Kong) Limited 8.25%
Topband（Vietnam)Co.,ltd 20.00%
TOPBANDSMARTDONGNAI(VIETNAM)Co.,ltd 20.00%
TopbandGermanyGmbH 15.83%
Huizhou Topband Battery Co., Ltd. 20.00%
Nantong Topband Youneng Technology Co., Ltd. 25.00%
Huizhou YAKO Automation Technology Co., Ltd. 25.00%
Shenzhen Topband Motor Co., Ltd. 20.00%
Shenzhen Yueshang Robot Co., Ltd. 20.00%
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Shenzhen Jingfei Investment Co., Ltd. 20.00%
Huizhou Chiding Technology Co., Ltd. 20.00%
Q.B.PTE.LTD 17.00%
TOPBANDMEXICO,S.DER.L.DEC.V. 30.00%
TOPBANDSMARTEUROPECOMPANYLIMITEDS.R.L. 16.00%
Yolaness Technology (HK) Co., Limited 8.25%
Huizhou Jiuwan Lvyuan Agriculture Co., Ltd. 20.00%
YOLANESSAFRICA(PTY)LTD 27.00%
2. Tax preference
Shenzhen YAKO Automation Technology Co., Ltd. was recognized as a software enterprise by Shenzhen
Economic, Trade and Information Commission on April 27, 2013, and obtained the Software Enterprise
Certificate that is numbered Shen R-2010-0237.In accordance with the provisions of the Notice on Issuing
Several Policies to Further Encourage the Development of the Software Industry and the Integrated Circuit
Industry (GF [2011] No. 4) issued by the State Council, during the Reporting Period, after the above-mentioned
product sales revenue was levied with value-added tax at the statutory tax rate of 13%, the portion of its actual
value-added tax burden that exceeded 3% was subject to a tax refund policy.
Shenzhen Topband Software Technology Co., Ltd. was recognized as a software enterprise by Shenzhen
Economic, Trade and Information Commission on June 28, 2013, and obtained the Software Enterprise
Certificate that is numbered Shen R-2013-0616.In accordance with the provisions of the Notice on Issuing
Several Policies to Further Encourage the Development of the Software Industry and the Integrated Circuit
Industry (GF [2011] No. 4) issued by the State Council, during the Reporting Period, after the above-mentioned
product sales revenue was levied with value-added tax at the statutory tax rate of 13%, the portion of its actual
value-added tax burden that exceeded 3% was subject to a tax refund policy.
Shenzhen Yansheng Software Co., Ltd. was recognized as a software enterprise by the Shenzhen Software
Industry Association on August 31, 2017, and obtained the Software Enterprise Certificate that is numbered
Shen RQ-2017-0587.In accordance with the provisions of the Notice on Issuing Several Policies to Further
Encourage the Development of the Software Industry and the Integrated Circuit Industry (GF [2011] No. 4)
issued by the State Council, during the Reporting Period, after the above-mentioned product sales revenue was
levied with value-added tax at the statutory tax rate of 13%, the portion of its actual value-added tax burden that
exceeded 3% was subject to a tax refund policy.
According to the Notice on Value-added Tax Policy for Software Products (CS [2011] No. 100) issued by
the Ministry of Finance and the State Taxation Administration, the portion of the actual value-added tax burden
on software product sales that exceeds 3% shall be subject to a tax refund policy. The provisions of this policy
apply to the Company's two subsidiaries, Shenzhen Allied Control System Co., Ltd. and Shenzhen Meanstone
Intelligent Technology Co., Ltd.
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On November 15, 2023, the Company obtained the Certificate for High-tech Enterprise that is numbered
GR202344206777 and issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance
Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate is valid within 3 years from
the date of issuance. The corporate income tax rate applicable for the Company from 2023 to 2025 is 15% in
accordance with relevant provisions of the Law of the People's Republic of China on Enterprise Income Tax,
Regulations of the People's Republic of China on the Implementation of Enterprise Income Tax and the
Management Measures for the Certification of High-tech Enterprises.
On December 19, 2022, Shenzhen Topband Software Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR202244203890 and issued by Shenzhen Science and Technology
Innovation Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration.
This Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for
the Company from 2022 to 2024 is 15% in accordance with relevant provisions of the Law of the People's
Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on the
Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.
On December 23, 2021, Shenzhen Topband Battery Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144203102 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic
of China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of
Enterprise Income Tax and the Management Measures for the Certification of High-tech Enterprises.
On December 20, 2021, Huizhou Topband Electrical Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR202144003640 and issued by the Department of Science and
Technology of Guangdong Province, the Department of Finance of Guangdong Province, and Guangdong
Provincial Tax Service, State Taxation Administration. This Certificate is valid within 3 years from the date of
issuance. The corporate income tax rate applicable for the Company from 2021 to 2023 is 15% in accordance
with relevant provisions of the Law of the People's Republic of China on Enterprise Income Tax, Regulations of
the People's Republic of China on the Implementation of Enterprise Income Tax and the Management Measures
for the Certification of High-tech Enterprises.
On December 23, 2021, Shenzhen YAKO Automation Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR202144205479 and issued by Shenzhen Science and Technology
Innovation Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration.
This Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for
the Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's
Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on the
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Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.
On December 23, 2021, Shenzhen Allied Control System Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144206368 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic
of China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of
Enterprise Income Tax and the Management Measures for the Certification of High-tech Enterprises.
On December 23, 2021, Shenzhen Yansheng Software Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144207744 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic
of China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of
Enterprise Income Tax and the Management Measures for the Certification of High-tech Enterprises.
On November 30, 2021, Taixing Ninghui Lithium Battery Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202132010782 and issued by the Jiangsu Provincial Department of Science and
Technology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service, State
Taxation Administration. This Certificate is valid within 3 years from the date of issuance. The corporate
income tax rate applicable for the Company from 2021 to 2023 is 15% in accordance with relevant provisions
of the Law of the People's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of
China on the Implementation of Enterprise Income Tax and the Management Measures for the Certification of
High-tech Enterprises.
On November 15, 2023, Shenzhen Topband Automation Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR202344204958 and issued by Shenzhen Science and Technology
Innovation Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration.
This Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for
the Company from 2023 to 2025 is 15% in accordance with relevant provisions of the Law of the People's
Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on the
Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.
According to the provisions of the Announcement on Tax and Fee Policies to Further Support the
Development of Small and Micro Enterprises and Individual Businesses ([2023] No. 12) issued by the Ministry
of Finance and the State Taxation Administration, the policy of calculating the taxable income of small and
micro-profit enterprises at a reduced rate of 25% and paying corporate income tax at a rate of 20% shall
continue to be implemented until December 31, 2027.The provisions of this Policy apply to Hangzhou Zhidong
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Motor Technology Co., Ltd., Shenzhen Spark IOT Technology Co., Ltd., Shenzhen Tunnu Innovation Co., Ltd.,
Huizhou Topband Battery Co., Ltd., Shenzhen Topband Motor Co., Ltd., Shenzhen Meanstone Intelligent
Technology Co., Ltd., Shenzhen Zhongli Consulting Co., Ltd., Shenzhen Senxuan Technology Co., Ltd.,
Shenzhen Tengyi Industrial Co., Ltd., Topband (Qingdao) Intelligent Control Co., Ltd., Shenzhen Topband
Automotive Electronics Co., Ltd., Shenzhen Yueshang Robot Co., Ltd., Shenzhen Jingfei Investment Co., Ltd.,
Huizhou Chiding Technology Co., Ltd. and Huizhou Jiuwan Lvyuan Agriculture Co., Ltd. that are subsidiaries
and sub-subsidiaries of the Company.
3. Others
None.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Items Ending balance Beginning balance
Cash on hand 1,069,045.22 606,436.16
Bank deposit 1,352,610,241.43 1,210,218,469.79
Other monetary capital 196,771,603.17 192,201,165.39
Total 1,550,450,889.82 1,403,026,071.34
Including: total amount deposited abroad 270,380,160.96 412,196,063.34
Other descriptions:
1. At the end of the period, there were pledged, frozen or other funds with restrictions on use totaling RMB
39,587,800.49.
2. At the end of the period, there is no amount deposited overseas and with the repatriation restricted.
2. Tradable financial assets
Unit: RMB
Items Ending balance Beginning balance
Financial assets measured at fair value and whose
656,704,087.16 342,959,450.31
changes are recorded in current profit or loss
Including:
Financial products 303,000,000.00 1,790,866.41
Investment in equity instruments 352,334,087.16 341,168,583.90
Forward foreign exchange contract 1,370,000.00
Including:
Total 656,704,087.16 342,959,450.31
Other descriptions:
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None.
3. Derivative financial assets
□ Applicable Not applicable
4. Notes receivable
(1) List of classification of notes receivable
Unit: RMB
Items Ending balance Beginning balance
Bank acceptance instruments 48,332,530.42 40,056,132.32
Commercial acceptance bill 5,865,862.11 11,735,626.58
Total 54,198,392.53 51,791,758.90
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Provision for bad
Book balance Book balance Provision for bad debts
debts
Category
Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Notes
receivable with
single 48,332,530.42 88.87% 48,332,530.42 40,056,132.32 76.78% 40,056,132.32
provision for
bad debts
Including:
Bank
48,332,530.42 88.87% 48,332,530.42 40,056,132.32 76.78% 40,056,132.32
acceptance bill
Commercial
acceptance bill
Notes
receivable with
provision for 6,053,521.27 11.13% 187,659.16 3.10% 5,865,862.11 12,111,069.74 23.22% 375,443.16 3.10% 11,735,626.58
bad debts by
portfolio
Including:
Commercial
6,053,521.27 11.13% 187,659.16 3.10% 5,865,862.11 12,111,069.74 23.22% 375,443.16 3.10% 11,735,626.58
acceptance bill
Total 54,386,051.69 100.00% 187,659.16 0.35% 54,198,392.53 52,167,202.06 100.00% 375,443.16 0.72% 51,791,758.90
Provision for bad debts by portfolio: 187,659.16
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Commercial acceptance bill 6,053,521.27 187,659.16 3.10%
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Total 6,053,521.27 187,659.16
Explanation of the basis for determining the portfolio:
None
If the provision for bad debts of notes receivable is made according to the general model of expected credit
losses:
□ Applicable Not applicable
(3) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Beginning Amount changed in the current period
Category Ending balance
balance Provision Recover or reversal Write-off Others
Provision for bad debts -
375,443.16 -187,784.00 187,659.16
notes receivable
Total 375,443.16 -187,784.00 187,659.16
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable Not applicable
(4) Notes receivable pledged by the Company at the end of the period
□ Applicable Not applicable
(5) Notes receivable endorsed or discounted by the Company at the end of the period and not due yet on
balance sheet date
Unit: RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Items
period the period
Bank acceptance instruments 30,163,200.29
Commercial acceptance bill
Total 30,163,200.29
(6) Notes receivable actually written off in the current period
□ Applicable Not applicable
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5. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Book balance at the end of the period Book balance at the beginning of the period
Within 1 year (including 1 year) 2,501,663,449.76 2,634,692,660.36
1-2 years 26,101,888.01 41,435,174.20
2-3 years 34,426,751.55 37,842,457.63
Above 3 years 38,418,609.23 2,835,672.10
3-4 years 36,343,415.96 1,167,983.94
4-5 years 742,628.55 1,387,990.68
Above 5 years 1,332,564.72 279,697.48
Total 2,600,610,698.55 2,716,805,964.29
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(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion of Book value Proportion of Book value
Amount Proportion Amount Amount Proportion Amount
provision provision
Accounts receivable with single
90,294,270.19 3.47% 90,294,270.19 100.00% 82,546,521.29 3.04% 82,546,521.29 100.00%
provision for bad debts
Including:
Accounts receivable with a
single significant amount and 86,711,553.79 3.33% 86,711,553.79 100.00% 82,546,521.29 3.04% 82,546,521.29 100.00%
single bad debt provision
Accounts receivable with not
significant amount but with 3,582,716.40 0.14% 3,582,716.40 100.00%
single provision for bad debts
Accounts receivable with
provision for bad debts by 2,510,316,428.36 96.53% 78,542,550.80 3.13% 2,431,773,877.56 2,634,259,443.00 96.96% 84,525,403.34 3.21% 2,549,734,039.66
portfolio
Including:
Accounts receivables with
provision for bad debts by aging 2,510,316,428.36 96.53% 78,542,550.80 3.13% 2,431,773,877.56 2,634,259,443.00 96.96% 84,525,403.34 3.21% 2,549,734,039.66
portfolio
Total 2,600,610,698.55 100.00% 168,836,820.99 6.49% 2,431,773,877.56 2,716,805,964.29 100.00% 167,071,924.63 6.15% 2,549,734,039.66
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Single provision for bad debts: 90,294,270.19
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Proportion of Reasons for
Book balance Book balance
bad debts bad debts provision provision
Accounts receivable with a
single significant amount It is difficult
82,546,521.29 82,546,521.29 86,711,553.79 86,711,553.79 100.00%
and single bad debt to recover
provision
Accounts receivable with
not significant amount but It is difficult
3,582,716.40 3,582,716.40 100.00%
with single provision for to recover
bad debts
Total 82,546,521.29 82,546,521.29 90,294,270.19 90,294,270.19
Provision for bad debts by portfolio: 78,542,550.80
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivables with provision for bad
2,510,316,428.36 78,542,550.80 3.13%
debts by aging portfolio
Total 2,510,316,428.36 78,542,550.80
Explanation of the basis for determining the portfolio:
None.
If the provision for bad debts of accounts receivable is made according to the general model of expected
credit losses:
□ Applicable Not applicable
(3) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for
167,071,924.63 3,041,800.93 1,269,324.37 -7,580.20 168,836,820.99
bad debts
Total 167,071,924.63 3,041,800.93 1,269,324.37 -7,580.20 168,836,820.99
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
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(4) Accounts receivable actually written off in the current period
Unit: RMB
Items Amount of write-off
Accounts receivable actually written off 1,269,324.37
Among them, the important accounts receivable write-offs are:
None.
(5) Accounts receivable and contract assets of top five ending balances grouped by debtors
Unit: RMB
Proportion to total Ending balance of bad
Ending balances
Ending balance ending balances debt provision for
Ending balance of of accounts
Name of unit of contract of accounts accounts receivable and
accounts receivable receivable and
assets receivable and provision for impairment
contract assets
contract assets of contract assets
No. 1 630,305,220.75 630,305,220.75 24.24% 19,674,452.32
No. 2 110,510,961.39 110,510,961.39 4.25% 3,425,839.80
No. 3 82,546,521.27 82,546,521.27 3.17% 82,546,521.27
No. 4 75,696,409.27 75,696,409.27 2.91% 2,355,853.02
No. 5 65,510,995.69 65,510,995.69 2.52% 2,030,840.87
Total 964,570,108.37 964,570,108.37 37.09% 110,033,507.28
6. Contract assets
□ Applicable Not applicable
7. Receivables financing
(1) Classification of accounts receivable financing
Unit: RMB
Items Ending balance Beginning balance
Bank acceptance bill 126,350,412.69 79,652,525.19
Factored accounts receivable 111,968,012.71 173,392,414.33
Supply chain notes receivable 40,202,216.82 1,943,263.08
Total 278,520,642.22 254,988,202.60
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(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion of Book value Proportion of Book value
Amount Proportion Amount Amount Proportion Amount
provision provision
Single provision for bad debts 166,552,629.51 59.04% 166,552,629.51 81,595,788.27 31.32% 81,595,788.27
Including:
Bank acceptance bill 126,350,412.69 44.79% 126,350,412.69 79,652,525.19 30.57% 79,652,525.19
Supply chain notes receivable 40,202,216.82 14.25% 40,202,216.82 1,943,263.08 0.75% 1,943,263.08
Provision for bad debts by
115,550,064.71 40.96% 3,582,052.00 3.10% 111,968,012.71 178,939,540.07 68.68% 5,547,125.74 3.10% 173,392,414.33
portfolio
Including:
Factored accounts receivable 115,550,064.71 40.96% 3,582,052.00 3.10% 111,968,012.71 178,939,540.07 68.68% 5,547,125.74 3.10% 173,392,414.33
Total 282,102,694.22 100.00% 3,582,052.00 1.27% 278,520,642.22 260,535,328.34 100.00% 5,547,125.74 2.13% 254,988,202.60
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Single provision for bad debts: 0.
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Proportion Reasons for
Book balance Book balance
bad debts bad debts of provision provision
Bank acceptance bill 79,652,525.19 126,350,412.69
Supply chain notes
1,943,263.08 40,202,216.82
receivable
Total 81,595,788.27 166,552,629.51
Provision for bad debts by portfolio: 3,582,052.00
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Bad debt provision for
115,550,064.71 3,582,052.00 3.10%
factored accounts receivable
Explanation of the basis for determining the portfolio:
None.
Provision for bad debts based on the general model of expected credit losses
Unit: RMB
First stage Second stage Third stage
Provision for bad debts Expected credit loss Expected credit loss for the Expected credit loss for Total
in the next 12 entire duration (no credit the entire duration (credit
months impairment) impairment occurred)
Balance as of January 1, 2023 5,547,125.74 5,547,125.74
Balance as of January 1, 2023
in the current period
Accrual in the current period -1,965,073.74 -1,965,073.74
Balance as of December 31,
3,582,052.00 3,582,052.00
2023
Basis for division into different stages and bad debt provision ratio
None.
Description of significant changes in the balance of accounts receivable financing for which loss reserves
have changed during the current period:
None.
(3) Changes in increase or decrease in receivables financing and changes in fair value in the current
period
None.
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(4) Other descriptions
None.
8. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Other receivables 36,524,343.36 77,743,150.98
Total 36,524,343.36 77,743,150.98
(1) Interest receivable
□ Applicable Not applicable
(2) Dividends receivable
□ Applicable Not applicable
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
Nature of payment Book balance at the end of the period Book balance at the beginning of the period
Margin, deposit 24,942,814.39 25,628,574.96
Employee personal loan 7,837,283.76 12,085,358.61
Export rebate 8,682,341.31 21,954,980.84
Convertible loan 14,000,000.00
Compensation 2,217,210.33 10,820,710.33
Others 2,698,876.37 882,396.18
Total 46,378,526.16 85,372,020.92
2) Disclosure by aging
Unit: RMB
Aging Book balance at the end of the period Book balance at the beginning of the period
Within 1 year (including 1 year) 21,094,463.33 58,018,314.17
1-2 years 8,282,956.38 18,433,375.67
2-3 years 10,637,952.10 1,554,331.57
Above 3 years 6,363,154.35 7,365,999.51
3-4 years 824,947.24 5,508,631.96
4-5 years 3,683,926.82 728,086.38
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Above 5 years 1,854,280.29 1,129,281.17
Total 46,378,526.16 85,372,020.92
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3) Disclosure by bad debt provision method
Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion of Book value Proportion of Book value
Amount Proportion Amount Amount Proportion Amount
provision provision
Single provision for bad debts 8,682,341.31 18.72% 8,682,341.31 35,954,980.84 42.12% 35,954,980.84
Provision for bad debts by
37,696,184.85 81.28% 9,854,182.80 26.14% 27,842,002.05 49,417,040.08 57.88% 7,628,869.94 15.44% 41,788,170.14
portfolio
Total 46,378,526.16 100.00% 9,854,182.80 21.25% 36,524,343.36 85,372,020.92 100.00% 7,628,869.94 8.94% 77,743,150.98
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Single provision for bad debts: 0.
Beginning balance Ending balance
Name Provision for Book Provision for Proportion
Book balance Reasons for provision
bad debts balance bad debts of provision
Export tax rebate 8,682,341.3 No loss is expected in
21,954,980.84
receivable 1 export tax rebates
Provision for bad debts by portfolio: 9,854,182.80
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivable for which bad debt provision is
37,696,184.85 9,854,182.80 26.14%
made by credit risk feature portfolio
Total 37,696,184.85 9,854,182.80
Explanation of the basis for determining the portfolio: None.
Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
First stage Second stage Third stage
Expected credit loss for
Provision for bad debts Expected credit Expected credit loss for Total
the entire duration
loss in the next 12 the entire duration (no
(credit impairment
months credit impairment)
occurred)
Balance as of January 1, 2023 7,628,869.94 7,628,869.94
Balance as of January 1, 2023
in the current period
Accrual in the current period 2,130,985.29 2,130,985.29
Reversal in the current period 10,964.00 10,964.00
Other changes 105,291.57 105,291.57
Balance as of December 31,
9,854,182.80 9,854,182.80
2023
Basis for division into different stages and proportion of bad debt provision: None.
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
4) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning Ending
Category Recover or Reversal or write-
balance Provision Others balance
reversal off
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Provision for bad
7,628,869.94 2,130,985.29 10,964.00 105,291.57 9,854,182.80
debts
Total 7,628,869.94 2,130,985.29 10,964.00 105,291.57 9,854,182.80
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable Not applicable
5) Other receivables actually written off in the current period
Unit: RMB
Items Amount of write-off
Accounts receivable actually written off 10,964.00
Among them, the important other receivables were written off:
□ Applicable Not applicable
6) Other receivables of top five ending balances grouped by debtors
Unit: RMB
Name of Ending Proportion to total ending Ending balance of
Nature of payment Aging
unit balance balances of other receivables provision for bad debts
No. 1 Export rebate 8,682,341.31 Within 1 year 18.72% 0.00
No. 2 Guarantee deposit 3,555,451.67 2-3 years 7.67% 1,066,635.50
No. 3 Guarantee deposit 3,500,000.00 2-3 years 7.55% 1,050,000.00
Deposit and security Less than 1
No. 4 2,337,136.32 5.04% 575,321.20
deposit year, 2-3 years
No. 5 Compensation 2,217,210.33 1-2 years 4.78% 221,721.03
Total 20,292,139.63 43.76% 2,913,677.73
7) Reported in other receivables due to centralized fund management
Other descriptions: None.
9. Prepayments
(1) List of advance payments by aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 41,217,371.39 93.49% 52,386,993.93 93.35%
1-2 years 2,649,254.74 6.01% 512,018.85 5.06%
2-3 years 173,711.61 0.39% 16,728.11 1.08%
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Above 3 years 47,730.79 0.11% 89,916.06 0.51%
Total 44,088,068.53 53,005,656.95
Explanation of the cause for untimely settlement of advance payments aging more than one year with
important amounts: The terms of settlement have not been met.
(2) Accounts prepaid of the top five prepaying entities for ending balance
The total amount of accounts prepaid of the top five prepaying entities for ending balance grouped by
debtors in the year was RMB 16,440,759.83, accounting for 37.29% of the total ending balances of accounts
receivable.
Other descriptions: None.
10. Inventories
Whether the Company is required to comply with the disclosure requirements of the real estate industry
No
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(1) Inventory classification
Unit: RMB
Ending balance Beginning balance
Items Provision for decline in value of Provision for decline in value of
Book balance inventories or provision for impairment Book value Book balance inventories or provision for impairment Book value
of contract performance cost of contract performance cost
Purchase of raw materials 883,406,451.52 84,959,315.65 798,447,135.87 1,109,830,117.82 83,688,904.02 1,026,141,213.80
Goods in process 187,129,741.78 187,129,741.78 125,103,265.61 125,103,265.61
Goods on hand 477,050,469.57 22,099,671.18 454,950,798.39 577,165,161.12 12,958,236.03 564,206,925.09
Goods shipped in transit 118,434,872.84 4,566,699.62 113,868,173.22 114,595,833.38 3,797,469.37 110,798,364.01
Self-manufactured semi-finished
86,682,330.39 4,046,746.35 82,635,584.04 107,003,988.63 4,809,578.57 102,194,410.06
product
Materials entrusted for processing 16,730,489.94 16,730,489.94 64,442,573.06 64,442,573.06
Low-value consumables 54,792.27 54,792.27 65,460.90 65,460.90
Total 1,769,489,148.31 115,672,432.80 1,653,816,715.51 2,098,206,400.52 105,254,187.99 1,992,952,212.53
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(2) Provision for decline in value of inventories and provision for impairment of contract performance
cost
Unit: RMB
Decrease amount in the current
Beginning Increase in the current period
Items period Ending balance
balance
Provision Others Reversal or write-off Others
Purchase of raw
83,688,904.02 46,739,129.34 -12,344.35 45,456,373.36 84,959,315.65
materials
Goods on hand 12,958,236.03 18,873,809.80 507.59 9,732,882.24 22,099,671.18
Goods shipped in
3,797,469.37 2,410,823.43 1,641,593.18 4,566,699.62
transit
Self-manufactured
4,809,578.57 2,683,638.81 -1,242.30 3,445,228.73 4,046,746.35
semi-finished product
Total 105,254,187.99 70,707,401.38 -13,079.06 60,276,077.51 115,672,432.80
Inventory revaluation reserve was made on a portfolio basis
□ Applicable Not applicable
(3) Explanation of capitalized amount of borrowing costs included in ending balance of inventory
None.
(4) Explanation of current amortization amount of contract performance cost
None.
11. Assets held for sale
□ Applicable Not applicable
12. Non-current assets due within one year
□ Applicable Not applicable
13. Other current assets
Unit: RMB
Items Ending balance Beginning balance
VAT to be deducted 201,581,758.39 143,163,557.71
Other prepaid taxes 6,944,576.68 10,472,653.58
IPO-related fees 1,490,566.02
Deferred expenses 4,686,592.42
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Total 213,212,927.49 155,126,777.31
14. Debt investment
□ Applicable Not applicable
15. Other debt investment
□ Applicable Not applicable
16. Other equity instrument investment
Unit: RMB
Reasons
Losses
Gains and specified as
Losses accumulated at
Gains included losses included Dividend measured at
recognized in the end of the
in other in other revenue fair value with
Project Ending Beginning other period and
comprehensive comprehensive recognized changes
name balance balance comprehensive included in
revenue for the revenue at the in this included in
revenue for the other
period end of the period other
period comprehensive
period comprehensive
revenue
income
Suzhou
Legendsemi Strategic
20,000,000.00
Technology investment
Co., Ltd.
Suzhou
Suyu Strategic
21,192,950.00
Technology investment
Co., Ltd.
Total 41,192,950.00
There is termination confirmation in this period
□ Applicable Not applicable
Disclosure of non-trading equity instrument investments in the current period by item
□ Applicable Not applicable
17. Long-term receivables
□ Applicable Not applicable
207
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18. Long-term equity investment
Unit: RMB
Changes in increase or decrease in the current period
Beginning Profits and Declaration Ending
Beginning losses on Adjustment Other of Ending
balance of Provision balance of
Investee balance Additional Decrease in investment to other changes distribution balance (book
provision for for Others provision for
(book value) investment investment recognized comprehens in for cash value)
impairment impairment impairment
under equity ive income equity dividends
method or profits
I. Joint venture
II. Associated enterprises
Tai'an Yuchengxin
Power Supply 9,764,719.19 9,764,719.19
Technology Co., Ltd.
Shenzhen Daka
Optoelectronics Co., 5,886,346.16 -47,053.31 5,839,292.85
Ltd.
Pas Electronic
Technology (Nanjing) 6,928,835.90 6,928,835.90 0
Co., Ltd.
Shanghai Yidong
Power Technology Co., 10,735,476.85 -1,013,461.64 9,722,015.21
Ltd.
Dongguan Jujin Plastic
20,000,000.00 2,186,871.24 22,186,871.24
Technology Co., Ltd.
Subtotal 23,550,658.91 9,764,719.19 20,000,000.00 6,928,835.90 1,126,356.29 37,748,179.30 9,764,719.19
Total 23,550,658.91 9,764,719.19 20,000,000.00 6,928,835.90 1,126,356.29 37,748,179.30 9,764,719.19
208
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The recoverable amount was determined as the net amount of fair value less disposal costs.
□ Applicable Not applicable
The recoverable amount was determined based on the present value of expected future cash flows.
□ Applicable Not applicable
Reasons for significant inconsistency between the aforementioned information and the information used in
impairment tests in previous years or external information: None.
Reasons for the significant inconsistency between the information used in the impairment test of the
Company in previous years and the actual situation of the current year: None.
Other descriptions: None.
19. Other non-current financial assets
□ Applicable Not applicable
20. Investment property
(1) Investment property with cost measurement model
Applicable □ Not applicable
Unit: RMB
Construction in
Items Houses and buildings Land usage right Total
progress
I. Original book value
1. Beginning balance 119,070,562.06 119,070,562.06
2. Increase in the current period
(1) Outsourcing
(2) Transfer in of inventory, fixed assets and
construction in progress
(3) Increment from consolidation
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 119,070,562.06 119,070,562.06
II. Accumulated depreciation and accumulated
amortization
1. Beginning balance 12,827,784.21 12,827,784.21
2. Increase in the current period 2,838,375.00 2,838,375.00
(1) Provision or amortization 2,838,375.00 2,838,375.00
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3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 15,666,159.21 15,666,159.21
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 103,404,402.85 103,404,402.85
2. Beginning book value 106,242,777.85 106,242,777.85
The recoverable amount was determined as the net amount of fair value less disposal costs.
□ Applicable Not applicable
The recoverable amount was determined based on the present value of expected future cash flows.
□ Applicable Not applicable
Reasons for significant inconsistency between the aforementioned information and the information used in
impairment tests in previous years or external information: None.
Reasons for the significant inconsistency between the information used in the impairment test of the
Company in previous years and the actual situation of the current year: None.
Other descriptions: None.
(2) Investment property with fair value measurement model
□ Applicable Not applicable
(3) Conversion to investment property and measurement at fair value
□ Applicable Not applicable
(4) Investment property without property certificate of title
□ Applicable Not applicable
210
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21. Fixed assets
Unit: RMB
Items Ending balance Beginning balance
Fixed assets 2,102,862,886.72 1,840,358,093.74
Disposal of fixed assets
Total 2,102,862,886.72 1,840,358,093.74
(1) Situation about fixed assets
Unit: RMB
Office
Houses and Machinery and Transportation
Items equipment and Total
buildings equipment equipment
others
I. Original book value:
1. Beginning balance 1,210,636,967.86 1,121,012,648.11 2,952,750.39 67,432,207.98 2,402,034,574.34
2. Increase in the current period 135,845,791.52 307,171,809.54 875,973.26 15,322,104.70 459,215,679.02
(1) Purchase 14,789.14 227,437,235.64 255,946.23 13,520,601.50 241,228,572.51
(2) Transfer into projects under
135,399,615.57 73,986,849.74 549,253.54 1,589,582.98 211,525,301.83
construction
(3) Increment from
consolidation
(4) Impact of exchange rate
431,386.81 5,747,724.16 70,773.49 211,920.22 6,461,804.68
changes
3. Decrease in the current period 1,232,231.53 56,002,302.92 238,225.00 9,423,390.63 66,896,150.08
(1) Disposal or scrapping 1,232,231.53 56,002,302.92 238,225.00 9,423,390.63 66,896,150.08
4. Ending balance 1,345,250,527.85 1,372,182,154.73 3,590,498.65 73,330,922.05 2,794,354,103.28
II. Accumulated depreciation
1. Beginning balance 143,928,870.29 379,576,810.02 2,288,706.56 35,882,093.73 561,676,480.60
2. Increase in the current period 31,238,119.87 128,979,938.68 495,974.57 10,831,134.10 171,545,167.22
(1) Accrual 31,202,321.89 128,839,435.71 482,267.68 10,812,851.18 171,336,876.46
(2) Impact of exchange rate
35,797.98 140,502.97 13,706.89 18,282.92 208,290.76
changes
3. Decrease in the current period 95,112.87 34,254,940.55 164,340.24 7,216,037.60 41,730,431.26
(1) Disposal or scrapping 95,112.87 34,254,940.55 164,340.24 7,216,037.60 41,730,431.26
4. Ending balance 175,071,877.29 474,301,808.15 2,620,340.89 39,497,190.23 691,491,216.56
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal or scrapping
4. Ending balance
211
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IV. Book value
1. Ending book value 1,170,178,650.56 897,880,346.58 970,157.76 33,833,731.82 2,102,862,886.72
2. Beginning book value 1,066,708,097.57 741,435,838.09 664,043.83 31,550,114.25 1,840,358,093.74
(2) Temporary idle fixed assets
□ Applicable Not applicable
(3) Fixed assets leased out through operating lease
□ Applicable Not applicable
(4) Fixed assets without certificate of title
Unit: RMB
Items Book value Reasons for not obtaining the title certificate
Short completion time, the property rights are currently being
Dong Nai Factory, Vietnam 75,624,339.74
processed
It shall be handled together after the second phase of the factory
Huizhou YAKO Automation Plant 120,856,655.54
is completed
(5) Impairment test of fixed assets
□ Applicable Not applicable
(6) Disposal of fixed assets
□ Applicable Not applicable
22. Construction in progress
Unit: RMB
Items Ending balance Beginning balance
Construction in progress 568,107,950.65 234,775,312.11
Total 568,107,950.65 234,775,312.11
(1) Projects under construction
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Decoration of
183,486.24 183,486.24 1,155,051.38 1,155,051.38
Huizhou Plant
Topband (India) 68,648.97 68,648.97 5,360,095.79 5,360,095.79
212
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Plant
Ningbo Topband
16,898,437.26 16,898,437.26 6,548,784.76 6,548,784.76
Industrial Park
Test equipment to
162,683,370.16 162,683,370.16 90,444,560.92 90,444,560.92
be commissioned
Vietnam Dong
154,213.01 154,213.01 1,229,894.49 1,229,894.49
Nai Decoration
Dormitory
renovation of 689,406.28 689,406.28
Huizhou plant
Huizhou YAKO
112,992,616.66 112,992,616.66 78,399,893.68 78,399,893.68
Automation Plant
Qingdao Plant 1,835,469.17 1,835,469.17 1,804,902.19 1,804,902.19
Topband Huizhou
No. 2 Industrial 27,708,391.40 27,708,391.40 16,352,994.82 16,352,994.82
Park
Plant in Romania 22,102,695.19 22,102,695.19
Plant Decoration
2,314,190.12 2,314,190.12
in Shenzhen
Nantong Lithium
Battery Industrial 244,737,333.79 244,737,333.79 5,259,209.25 5,259,209.25
Park
Sporadic items 845,983.99 845,983.99 3,113,633.24 3,113,633.24
Total 568,107,950.65 568,107,950.65 234,775,312.11 234,775,312.11
213
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(2) Changes in the important projects under construction in the current period
Unit: RMB
Proportion Including:
Interest
Amount of of Accumulated interest
Other capitalization
Beginning Increase in the transfer into Ending accumulated Project amount of capitalization Source of
Project name Budget decrements rate in the
balance current period fixed assets balance project progress interest amount in capitals
this period current
this period investment capitalization the current
period
in budget period
Ningbo Topband Raised
465,704,300.00 6,548,784.76 28,997,753.27 12,046,591.59 6,601,509.18 16,898,437.26 91.78% 92.00% 6,883,762.50 1,821,262.50 4.12%
Industrial Park capitals
Huizhou YAKO Self-own
370,000,000.00 78,399,893.68 155,449,378.52 120,856,655.54 112,992,616.66 63.20% 63.00% 537,708.13 537,708.13 3.90%
Automation Plant capitals
Topband
Self-own
Huizhou No. 2 190,000,000.00 16,352,994.82 11,355,396.58 27,708,391.40 14.58% 15.00%
capitals
Industrial Park
Plant Decoration Self-own
31,220,000.00 22,102,695.19 14,275,234.74 36,377,929.93 116.52% 100.00%
in Romania capitals
Nantong Lithium
Raised
Battery Industrial 800,000,000.00 5,259,209.25 239,478,124.54 244,737,333.79 30.59% 31.00%
capitals
Park
Total 1,856,924,300.00 128,663,577.70 449,555,887.65 132,903,247.13 42,979,439.11 402,336,779.11 7,421,470.63 2,358,970.63
214
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(3) Provision for impairment of project under construction in the current period
□ Applicable Not applicable
(4) Impairment test of construction in progress
□ Applicable Not applicable
(5) Project material
□ Applicable Not applicable
23. Productive biological assets
□ Applicable Not applicable
24. Oil and gas assets
□ Applicable Not applicable
25. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Items Houses and buildings Land Total
I. Original book value
1. Beginning balance 151,222,723.36 151,222,723.36
2. Increase in the current period 38,527,606.68 5,875,457.96 44,403,064.64
(1) New lease 30,994,048.00 5,875,457.96 36,869,505.96
(2) Impact of exchange rate changes 6,558,550.85 6,558,550.85
(3) Change of contract 975,007.83 975,007.83
3. Decrease in the current period 9,716,801.16 9,716,801.16
(1) Termination of contract 9,716,801.16 9,716,801.16
(2) Change of contract
4. Ending balance 180,033,528.88 5,875,457.96 185,908,986.84
II. Accumulated depreciation
1. Beginning balance 45,025,821.49 45,025,821.49
2. Increase in the current period 46,248,994.56 171,367.52 46,420,362.08
(1) Accrual 44,789,885.11 171,367.52 44,961,252.63
(2) Impact of exchange rate changes 1,459,109.45 1,459,109.45
3. Decrease in the current period 6,984,182.47 6,984,182.47
(1) Disposal 6,984,182.47 6,984,182.47
215
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4. Ending balance 84,290,633.58 171,367.52 84,462,001.10
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 95,742,895.30 5,704,090.44 101,446,985.74
2. Beginning book value 106,196,901.87 106,196,901.87
(2) Impairment test of right-of-use assets
□ Applicable Not applicable
26. Intangible assets
(1) Situation of intangible assets
Unit: RMB
Non-patented
Items Land usage right Patent right Trademark Total
technology
I. Original book value
1. Beginning balance 27,456,858.38 340,787,809.19 489,043,673.86 9,728,450.00 867,016,791.43
2. Increase in the current period 1,693,827.04 50,432,347.90 111,323,498.94 163,449,673.88
(1) Purchase 1,689,601.43 50,784,728.62 131,067.96 52,605,398.01
(2) Internal R&D 111,192,430.98 111,192,430.98
(3) Increment from consolidation
(4) Impact of exchange rate
4,225.61 -352,380.72 -348,155.11
changes
3. Decrease in the current period
(1) Disposal
4. Ending balance 29,150,685.42 391,220,157.09 600,367,172.80 9,728,450.00 1,030,466,465.31
II. Accumulated amortization
1. Beginning balance 22,759,462.08 21,339,657.64 269,435,470.62 6,165,886.52 319,700,476.86
2. Increase in the current period 2,280,808.41 7,796,093.91 93,578,190.18 103,655,092.50
(1) Accrual 2,279,876.48 7,835,295.71 93,578,190.18 103,693,362.37
(2) Impact of exchange rate
931.93 -39,201.80 -38,269.87
changes
3. Decrease in the current period
216
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(1) Disposal
4. Ending balance 25,040,270.49 29,135,751.55 363,013,660.80 6,165,886.52 423,355,569.36
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 4,110,414.93 362,084,405.54 237,353,512.00 3,562,563.48 607,110,895.95
2. Beginning book value 4,697,396.30 319,448,151.55 219,608,203.24 3,562,563.48 547,316,314.57
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the
end of the period accounted for 39.10%.
(2) Situation of land usage right without property certificate of title
None.
(3) Impairment test of intangible assets
□ Applicable Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
Increase in the current Decrement in the
Beginning period current period
Name of investees or items forming goodwill Ending balance
balance Disposal formed
Disposal
by consolidation
Shenzhen YAKO Automation Technology
107,314,446.71 107,314,446.71
Co., Ltd.
Shenzhen Allied Control System Co., Ltd. 53,768,699.68 53,768,699.68
Shenzhen Meanstone Intelligent Technology
3,006,892.59 3,006,892.59
Co., Ltd.
Hangzhou Zhidong Motor Technology Co.,
1,322,921.77 1,322,921.77
Ltd.
Taixing Ninghui Lithium Battery Co., Ltd. 1,962,891.12 1,962,891.12
Shenzhen Tengyi Industrial Co., Ltd. 131,783.24 131,783.24
Total 167,507,635.11 167,507,635.11
217
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(2) Impairment of goodwill
Unit: RMB
Increase in the Decrement in the
Name of investees or items forming goodwill Beginning balance current period current period Ending balance
Provision Disposal
Shenzhen Allied Control System Co., Ltd. 53,768,699.68 53,768,699.68
Shenzhen Meanstone Intelligent Technology
3,006,892.59 3,006,892.59
Co., Ltd.
Total 56,775,592.27 56,775,592.27
(3) Information about the asset group or portfolio of goodwill
None
(4) Specific method for determining recoverable amount
The recoverable amount was determined as the net amount of fair value less disposal costs.
□ Applicable Not applicable
The recoverable amount was determined based on the present value of expected future cash flows.
□ Applicable Not applicable
Reasons for the significant inconsistency between the above-mentioned information and the information used in
the impairment test in previous years or external information
Reasons for the significant inconsistency between the information used in the impairment test of the Company
in previous years and the actual situation of the current year
(5) Completion of performance commitments and corresponding goodwill impairment
There was a performance commitment when goodwill was formed and the Reporting Period or the period
before the Reporting Period was within the performance commitment period
□ Applicable Not applicable
Other descriptions: None
28. Long-term deferred expenses
Unit: RMB
Increase in the Amortization in the Other reduced
Items Beginning balance Ending balance
current period current period amount
218
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Decoration costs 132,090,828.44 106,944,571.48 52,053,096.14 4,692,865.17 182,289,438.61
Others 130,736.79 555,889.34 171,656.64 514,969.49
Total 132,221,565.23 107,500,460.82 52,224,752.78 4,692,865.17 182,804,408.10
29. Deferred tax assets/deferred tax liabilities
(1) Non-offset deferred tax assets
Unit: RMB
Ending balance Beginning balance
Items Deductible temporary Deferred tax Deductible temporary Deferred tax
differences assets differences assets
Provision for asset impairment 294,545,474.56 46,678,454.85 281,652,280.08 43,628,391.64
Deductible loss 390,699,314.09 65,486,472.23 188,813,388.08 39,381,980.91
Amortization difference of
133,446,425.92 20,016,963.88 94,689,166.74 14,203,375.01
intangible assets
Deferred income 11,071,292.42 1,881,581.86 13,245,250.14 1,986,787.52
Equity incentive expenses 62,111,490.83 9,316,723.62
New leasing criteria book-tax
107,881,215.35 20,976,523.71 109,622,378.17 20,769,946.22
difference
Total 937,643,722.34 155,039,996.53 750,133,954.04 129,287,204.92
(2) Deferred tax liabilities without offset
Unit: RMB
Ending balance Beginning balance
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Valuation and appreciation of assets of
business consolidation under different 412,730.28 61,909.54 857,693.62 128,654.04
control
Changes in fair value of tradable
248,096,517.73 41,833,063.71 235,561,014.47 39,250,529.22
financial assets
Book-tax difference of fixed assets
71,278,660.11 14,299,191.58 51,414,751.05 10,622,182.15
depreciation
Book-tax difference of rental income 6,120,608.60 1,530,152.15 4,571,154.88 1,142,788.72
New leasing criteria book-tax
102,290,793.51 20,006,539.83 105,092,583.59 19,947,728.52
difference
Total 428,199,310.23 77,730,856.81 397,497,197.61 71,091,882.65
(3) Deferred tax assets or liabilities listed by net amount after offset
Unit: RMB
Amount of mutual
Amount of offset
Ending balance of offset between deferred Beginning balance of
between deferred tax
Items deferred tax assets or tax assets and liabilities deferred tax assets or
assets and liabilities at
liabilities after offset at the beginning of the liabilities after offset
the end of the period
period
219
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Deferred tax assets 155,039,996.53 129,287,204.92
Deferred tax liabilities 77,730,856.81 71,091,882.65
(4) Details of unrecognized deferred tax assets
Unit: RMB
Items Ending balance Beginning balance
Deductible temporary differences 13,441,041.61 14,185,355.88
Deductible loss 170,793,360.18 73,447,423.03
Total 184,234,401.79 87,632,778.91
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: RMB
Year Ending amount Beginning amount Remarks
2024 796.72
2025 2,106,518.93 2,034,722.96
2026 14,899,970.42 14,435,579.52
2027 26,254,597.91 27,240,120.80
2028 27,003,257.68
No time limit 100,528,218.52 29,736,999.75
Total 170,793,360.18 73,447,423.03
Note: The deductible losses of unrecognized deferred tax assets with no maturity period are recoverable
losses of overseas subsidiaries, and there are no local policy requirements for deductible periods.
30. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepaid long-
120,187,135.05 120,187,135.05 172,371,288.80 172,371,288.80
term assets
Total 120,187,135.05 120,187,135.05 172,371,288.80 172,371,288.80
31. Assets with limited ownership or use right
Unit: RMB
End of the period Beginning of the period
Items Book Restriction Restriction Book Restriction Restriction
Book value Book value
balance type situation balance type situation
Security Security Security
deposit, deposit, Security deposit,
Monetary
39,587,800.49 39,587,800.49 judicial financial 18,937,494.54 18,937,494.54 deposit, and frozen
capital freeze, and management frozen funds funds, long-
financial funds in the term
220
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management subscription suspended
in the period, and account, etc.
subscription frozen funds
period
Mortgage
Mortgage
Fixed assets 120,856,655.54 119,899,873.68
loan
loans for
buildings
Mortgage
Intangible Mortgage
61,302,043.62 59,492,901.97 loans for land
assets loan
use rights
Mortgage
Construction Mortgage loans for
112,992,616.66 112,992,616.66
in progress loan projects under
construction
Total 334,739,116.31 331,973,192.80 18,937,494.54 18,937,494.54
32. Short-term loans
(1) Classification of short-term loans
Unit: RMB
Items Ending balance Beginning balance
Credit loan 218,148,750.00 12,325,580.00
Letter of credit 60,000,000.00 265,000,000.00
Discounted unexpired notes receivable 1,200,000.00 6,025,915.57
Total 279,348,750.00 283,351,495.57
(2) Overdue short-term loans
The total amount of overdue short-term loans at the end of this period is 0.
33. Tradable financial liabilities
None.
34. Derivative financial liabilities
None.
35. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Commercial acceptance bill 927,833,178.70 1,065,652,340.80
Total 927,833,178.70 1,065,652,340.80
The total amount of notes payable due but unpaid at the end of the current period was RMB 0.00.
221
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36. Accounts payable
(1) Accounts payable listed
Unit: RMB
Items Ending balance Beginning balance
Within 1 year (including 1 year) 1,953,706,413.01 1,601,875,172.01
1-2 years (including 2 years) 2,139,042.19 940,565.81
2-3 years (including 3 years) 598,185.50 2,570,462.09
Above 3 years 1,182,755.64 1,060,004.11
Total 1,957,626,396.34 1,606,446,204.02
(2) There were no significant accounts payable over one year or overdue at the end of the period.
37. Other payables
Unit: RMB
Items Ending balance Beginning balance
Other account payable 151,341,029.40 335,047,520.52
Total 151,341,029.40 335,047,520.52
(1) Interest payable
□ Applicable Not applicable
(2) Dividends payable
□ Applicable Not applicable
(3) Other payables
1) Other payables listed by fund nature
Unit: RMB
Items Ending balance Beginning balance
Restricted stock repurchase obligations 343,896.00 231,812,873.60
Expenses 23,067,327.79 25,199,800.55
Long-term assets 60,945,718.78 42,160,937.47
Margin, deposit 9,559,259.36 7,162,370.39
Current accounts 37,115,852.17 17,398,987.82
Others 20,308,975.30 11,312,550.69
Total 151,341,029.40 335,047,520.52
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2) Other significant payables aged over 1 year or overdue
□ Applicable Not applicable
3) Other accounts payable of the top five ending balances by counterparty
Other descriptions: None.
38. Advance collections
(1) Presentation of advance collections
Unit: RMB
Items Ending balance Beginning balance
Within 1 year (including 1 year) 2,808,227.54 1,130,165.23
Total 2,808,227.54 1,130,165.23
(2) Important advance collections with aging over 1 year or overdue
□ Applicable Not applicable
39. Contractual liabilities
Unit: RMB
Items Ending balance Beginning balance
Advances on sales 168,681,571.89 138,281,929.17
Total 168,681,571.89 138,281,929.17
Significant contract liabilities aged over 1 year
□ Applicable Not applicable
40. Employee pay payable
(1) Presentation of employee pay payable
Unit: RMB
Increase in the Decrement in the
Items Beginning balance Ending balance
current period current period
I. Short-term compensation 206,810,975.44 1,633,454,392.76 1,597,150,318.72 243,115,049.48
II. Post-employment benefits -
168,797.71 77,933,749.19 77,949,813.25 152,733.65
defined contribution plan
Total 206,979,773.15 1,711,388,141.95 1,675,100,131.97 243,267,783.13
(2) Presentation of short-term remuneration
Unit: RMB
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Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
1. Wages, bonuses, allowances and
203,678,977.95 1,508,440,413.03 1,473,699,836.63 238,419,554.35
subsidies
2. Employee benefits 43,226.15 38,436,266.96 38,366,570.53 112,922.58
3. Social insurance expense 529,503.33 43,288,620.01 42,304,542.01 1,513,581.33
Including: medical insurance
525,104.36 39,332,379.75 38,347,932.40 1,509,551.71
premiums
Industrial injury insurance expense 4,398.97 1,741,208.50 1,741,577.85 4,029.62
Maternity insurance expense 2,215,031.76 2,215,031.76
4. Housing provident fund 41,972,694.87 41,972,694.87
5. Trade union funds and staff
50,089.90 354,559.90 404,160.52 489.28
education funds
8. Others 2,509,178.11 961,837.99 402,514.16 3,068,501.94
Total 206,810,975.44 1,633,454,392.76 1,597,150,318.72 243,115,049.48
(3) List of defined contribution plan
Unit: RMB
Beginning Increase in the Decrement in the
Items Ending balance
balance current period current period
1. Basic endowment insurance 161,799.37 76,468,177.52 76,483,753.45 146,223.44
2. Unemployment insurance expense 6,998.34 1,465,571.67 1,466,059.80 6,510.21
Total 168,797.71 77,933,749.19 77,949,813.25 152,733.65
41. Taxes payable
Unit: RMB
Items Ending balance Beginning balance
VAT (value-added tax) 38,272,199.07 53,017,545.90
Corporate income tax 27,477,646.56 19,648,268.34
Individual income tax 14,288,257.83 11,251,522.04
Urban maintenance and construction tax 1,068,455.46 336,488.64
Education surcharge 763,182.49 240,581.55
Property tax 8,767,641.43 3,647,511.72
Land use tax 1,184,938.91 174,669.06
Stamp duty and others 552,283.82 88,927.40
Total 92,374,605.57 88,405,514.65
42. Liabilities held for sale
□ Applicable Not applicable
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43. Non-current liabilities due within one year
Unit: RMB
Items Ending balance Beginning balance
Long-term borrowings due within one year 326,208,942.16 37,135,000.00
Lease liabilities due within one year 44,414,655.87 38,221,303.72
Total 370,623,598.03 75,356,303.72
44. Other current liabilities
Unit: RMB
Items Ending balance Beginning balance
Tax amount to be resold 3,598,492.74 3,379,987.09
Notes receivable that have been endorsed but
28,963,200.29 19,096,443.65
not derecognized
Total 32,561,693.03 22,476,430.74
45. Long-term loans
(1) Classification of long-term loan
Unit: RMB
Items Ending balance Beginning balance
Mortgage loan 500,000.00
Guaranteed loan 84,000,000.00
Credit loan 345,679,999.99 497,500,000.00
Mortgage + guaranteed loan 91,567,877.48
Total 437,747,877.47 581,500,000.00
Explanation of long-term loan classification: None.
Other descriptions, including interest rate ranges: None.
46. Bonds payable
□ Applicable Not applicable
47. Lease liabilities
Unit: RMB
Items Ending balance Beginning balance
Rental payment 69,176,893.60 86,053,288.78
Unrecognized financing expenses -7,747,082.57 -12,442,497.69
Total 61,429,811.03 73,610,791.09
Other descriptions: None.
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48. Long-term payables
□ Applicable Not applicable
49. Long-term employee compensation payable
□ Applicable Not applicable
50. Estimated liabilities
□ Applicable Not applicable
51. Deferred income
Unit: RMB
Increase in the Decrement in the Reasons of
Items Beginning balance Ending balance
current period current period formation
Governmental
Governmental
13,370,250.14 2,761,100.00 4,985,057.72 11,146,292.42 subsidies related to
subsidies
assets
Total 13,370,250.14 2,761,100.00 4,985,057.72 11,146,292.42 --
52. Other non-current liabilities
□ Applicable Not applicable
53. Share capital
Unit: RMB
Increase or decrease of change this time (+, -)
Beginning Conversion of
Issuance Ending balance
balance Stock accumulation
of new Others Subtotal
dividend fund into
shares
shares
Total
number 1,269,535,372.00 -22,700,384.00 -22,700,384.00 1,246,834,988.00
of shares
Note: The share capital decreased by RMB 22,700,384.00 in this period, which was due to the repurchase
and cancellation resulted from the resignation of the incentive targets and the cancellation of the 2021
Restricted Stock Incentive Plan.
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54. Other equity instruments
(1) Basic information on other financial instruments such as preferred shares and perpetual bonds outstanding at the end
of the period
None.
(2) Changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period
None.
55. Capital reserve
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Capital premium (share premium) 2,121,733,860.51 73,441,428.60 138,926,350.08 2,056,248,939.03
Other capital reserves 144,408,337.93 85,569,433.84 73,596,791.29 156,380,980.48
Total 2,266,142,198.44 159,010,862.44 212,523,141.37 2,212,629,919.51
Note 1: RMB 73,441,428.60 was increased in the capital premium this year as RMB 73,441,428.60 option
fee recognized in other capital surplus of the prior period was transferred to the capital premium because of the
release of the restricted shares. The decrease of RMB 138,926,350.08 in share premium this year was due to the
repurchase and cancellation of stocks resulting from the termination of the 2021 Restricted Stock Incentive Plan
and the resignation of incentive targets, which offset the share premium.
Note 2: Other capital reserves increased by RMB 85,569,433.84 this year, including RMB 79,290,114.83
of share-based payment expenses confirmed by restricted stock equity incentive plan in the current period and
RMB 6,279,319.01 of share-based payment confirmed by Huizhou YAKO Automation Technology Co., Ltd.
(subsidiary).Other capital reserves decreased by RMB 73,596,791.29 this year, of which: the release and
exercise of restricted shares was transferred to share premium, which reduced other capital reserves by RMB
73,441,428.60; the capital increase of Taixing Ninghui Lithium Battery Co., Ltd. affected the capital reserve at
the consolidated level to decrease by RMB 155,362.69.
56. Treasury shares
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Restricted stock
231,812,873.60 231,812,873.60
repurchase obligations
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Repurchase of company
shares in competitive 52,444,981.31 59,981,119.93 112,426,101.24
trading
Total 284,257,854.91 59,981,119.93 231,812,873.60 112,426,101.24
57. Other comprehensive income
Unit: RMB
Amount incurred in the current period
Minus: profits
Minus: current
and losses
retained
included in
Amount of earnings
Beginning other Minus: Attributable to Attributable Ending
Items pre-income included in
balance comprehensive income parent to minority balance
tax incurred in other
income tax company after shareholders
the current comprehensive
previously and expense tax after tax
period income in the
transferred in
previous
the current
period
period
II. Other
comprehensive
income that is -
20,411,651.76 20,411,651.76 11,932,029.41
reclassified 8,479,622.35
into profits and
losses
Difference in
translation of
foreign -
20,411,651.76 20,411,651.76 11,932,029.41
currency 8,479,622.35
financial
statements
Total amount
of other -
20,411,651.76 20,411,651.76 11,932,029.41
comprehensive 8,479,622.35
income
58. Special reserve
□ Applicable Not applicable
59. Surplus reserves
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Statutory surplus reserve 214,764,194.14 4,682,742.45 219,446,936.59
Total 214,764,194.14 4,682,742.45 219,446,936.59
Explanation of the surplus reserve, including the changes in increase or decrease in the current period and
the reasons for changes: None.
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60. Retained earnings
Unit: RMB
Items Current period Previous period
Retained earnings at the end of the previous period 2,270,819,171.01 1,779,243,483.61
before adjustment
Total retained earnings at the beginning of the period (+ 710,522.81 365,494.43
for increase, - for decrease)
Retained earnings at the beginning of last period after 2,271,529,693.82 1,779,608,978.04
adjustment
Plus: net profit attributable to owners of parent company 515,513,995.18 583,000,286.76
in current year
Minus: appropriation of statutory surplus reserves 4,682,742.45 28,366,562.38
Common stock dividends payable 75,861,250.32 62,713,008.60
Retained earnings at the end of the period 2,706,499,696.23 2,271,529,693.82
Details of retained earnings at the beginning of adjustment period:
1) Due to retrospective adjustment in accordance with the Accounting Standards for Business Enterprises
and its related new regulations, the beginning retained earnings of RMB 0.00 were affected.
2) Due to the change in accounting policy, the beginning retained earnings of RMB 710,522.81 were
affected.
3) Due to the correction of major accounting errors, the beginning retained earnings of RMB 0.00 were
affected.
4) Due to the change in the scope of consolidation caused by common control, the beginning retained
earnings of RMB 0.00 were affected.
5) The beginning retained earnings of RMB 0.00 were affected by other adjustments.
61. Operating income and operating costs
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 8,934,867,692.01 6,955,649,634.03 8,836,386,705.11 7,078,885,305.98
Other business 57,474,477.07 30,674,810.49 38,712,431.95 8,341,680.90
Total 8,992,342,169.08 6,986,324,444.52 8,875,099,137.06 7,087,226,986.88
Is the audited net profit before and after deducting the non-recurring profit and loss (whichever is lower)
negative?
□ Yes No
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The breakdown of operating income and operating costs:
□ Applicable Not applicable
Information related to performance obligations:
□ Applicable Not applicable
Significant contract changes or significant transaction price adjustments
□ Applicable Not applicable
62. Taxes and surcharges
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Urban maintenance and construction tax 20,889,516.99 22,104,766.90
Education surcharge 14,922,148.34 15,789,417.57
Property tax 10,911,411.26 10,105,204.62
Land use tax 1,939,963.52 1,640,955.29
Stamp duty 6,713,329.11 9,544,596.67
Others 88,332.70 209,827.30
Total 55,464,701.92 59,394,768.35
63. Overheads
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 237,347,006.91 202,600,465.16
Decoration costs 27,505,219.23 20,922,117.86
Intermediary service expenses 18,641,303.03 14,920,006.17
Depreciation and amortization 57,553,657.92 42,055,068.30
Rent and utilities 15,076,698.26 6,564,412.32
Low-value consumables 10,420,181.65 9,426,710.31
Property insurance expenses 6,696,256.30 5,465,439.61
Office expenses 8,159,259.57 9,427,291.32
Equity incentive expenses 20,519,411.61 30,803,647.94
Travel expenses 10,496,552.41 7,853,325.04
Recruitment expenses 668,210.10 1,479,131.93
Royalties 3,012,624.33 3,928,633.31
Business entertainment expenses 4,526,740.60 3,154,186.69
Maintenance fees 4,717,311.59 1,880,084.37
Others 13,020,909.15 9,022,225.03
Total 438,361,342.66 369,502,745.36
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64. Sales expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 177,930,070.58 154,170,333.91
Low-value consumables 6,248,905.04 4,674,650.75
Business entertainment expenses 24,191,961.31 15,604,369.50
Travel expenses 21,837,455.26 8,814,511.30
Intermediary service expenses 24,056,095.72 19,354,887.13
Exhibition and advertising fees 11,939,949.08 7,559,811.10
Materials expenses 14,618,806.87 11,175,625.80
Mail expenses 2,127,799.43 1,954,588.01
Equity incentive expenses 16,782,757.00 22,864,675.20
Customs charges 2,332,947.47 2,883,673.61
Rent and utilities 2,795,464.97 2,964,947.90
Others 17,478,371.76 8,159,096.67
Total 322,340,584.49 260,181,170.88
65. R&D expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 402,934,357.32 335,394,101.32
Depreciation and amortization 114,207,065.14 92,403,641.99
Material expenses 46,759,862.86 30,803,656.42
Equity incentive expenses 34,765,522.02 56,384,583.55
Mold fee 19,041,570.90 20,693,229.51
Intermediary service expenses 12,732,354.18 10,656,282.28
Low-value consumables 9,121,231.77 5,457,987.48
Testing expense 10,684,965.27 7,199,211.70
Decoration costs 4,179,747.04 5,203,379.48
Rent and utilities 10,501,013.89 10,313,572.30
Travel expenses 7,391,806.97 3,544,510.11
Others 17,650,113.62 14,291,979.95
Total 689,969,610.98 592,346,136.09
66. Financial expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Interest expense 38,085,866.07 35,262,744.35
Interest revenue (income marked with "-") -36,588,417.62 -22,969,451.22
Exchange gains (income marked with "-") -55,439,182.32 -138,431,161.16
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Procedure fees and others 2,233,049.94 2,964,605.13
Total -51,708,683.93 -123,173,262.90
67. Other revenues
Unit: RMB
Source for other revenues Amount incurred in the current period Amount incurred in prior period
Governmental subsidies 32,905,181.89 33,217,045.91
Value-added tax rebate and refund on
7,901,050.41 5,231,680.35
demand
Return of individual income tax service
1,169,120.09 734,101.69
charge
Additional deduction of input tax 23,473,502.51
Total 65,448,854.90 39,182,827.95
68. Net exposure hedging revenue
□ Applicable Not applicable
69. Fair value change revenue
Unit: RMB
Sources of income from change in fair value Amount incurred in the current period Amount incurred in prior period
Tradable financial assets 12,535,503.26 87,818,625.99
Total 12,535,503.26 87,818,625.99
70. Investment income
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Long-term equity investment income
1,126,356.29 -2,568,468.91
accounted by the equity method
Investment income from disposal of long-
-2,928,835.90
term equity investments
Investment income from disposal of
-12,299,596.79
trading financial assets
Investment income of financial products 4,405,964.89 139,141.31
Forward foreign exchange contract
-1,538,474.98 2,994,236.07
settlement profit and loss
Total -11,234,586.49 564,908.47
71. Credit impairment loss
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Bad debt loss on notes receivable 187,784.00 -28,563.01
232
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Bad debt loss of accounts receivable -1,076,727.19 -46,998,677.16
Bad debt loss of other receivables -2,130,985.29 -2,344,758.97
Total -3,019,928.48 -49,371,999.14
72. Asset impairment loss
Unit: RMB
Amount incurred in the current
Items Amount incurred in prior period
period
I. Loss on inventory valuation and contract
-70,707,401.38 -69,957,962.94
performance cost impairment loss
Total -70,707,401.38 -69,957,962.94
73. Assets disposal revenue
Unit: RMB
Source of assets disposal revenue Amount incurred in the current period Amount incurred in prior period
Non-current assets disposal revenue -1,426,087.98 -1,612,652.02
Total -1,426,087.98 -1,612,652.02
74. Non-operating income
Unit: RMB
Amount incurred in the current Amount incurred in prior Amount included in the current
Items
period period non-recurring profit and loss
Gains on damage and
6,918.33 906,885.79 6,918.33
scrapping of non-current assets
Others 6,772,838.61 5,436,495.16 6,772,838.61
Total 6,779,756.94 6,343,380.95
Other descriptions:
None.
75. Non-operating expenses
Unit: RMB
Amount incurred in the Amount incurred in Amount included in the current
Items
current period prior period non-recurring profit and loss
External donations 100,000.00 100,000.00
Loss on damage and scrapping of non-
9,980,597.19 2,439,687.26 9,980,597.19
current assets
Customer quality deduction expenses 2,301,946.85 5,072,526.83 2,301,946.85
Others 8,898,962.23 1,797,787.24 8,898,962.23
Total 21,281,506.27 9,310,001.33 21,281,506.27
233
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76. Income tax expenses
(1) Table of income tax expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Current income tax expenses 35,722,550.85 63,736,073.65
Deferred tax expense -18,986,416.44 -12,654,044.16
Total 16,736,134.41 51,082,029.49
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Items Amount incurred in the current period
Total profit 528,684,772.94
Income tax expenses calculated at statutory/applicable tax rates 79,302,715.94
Influence of different tax rates applicable to subsidiary 11,906,258.38
Effect of income tax adjustment in previous period -10,582,760.20
Impact of non-taxable income -1,280,573.50
Impact of non-deductible cost, expense and loss 3,127,437.52
Impact of deductible temporary differences or deductible losses of unrecognized deferred
23,507,474.94
tax assets in the current period
The impact of changes in tax rates on the initial balance of deferred tax 3,645,279.15
Additional deduction of technical development cost -55,843,353.71
Vietnam subsidiaries enjoy half tax reduction and tax exemption -41,781,286.39
Other adjustment impact 4,734,942.28
Income tax expenses 16,736,134.41
77. Other comprehensive income
See Note VII.57 for details.
78. Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Current accounts 49,712,189.21 66,422,718.48
Interest income 30,275,917.62 22,969,451.22
Governmental subsidies 39,284,724.17 32,202,096.05
Deposits and security deposits received 7,526,394.61 3,458,869.84
Others 1,772,682.72 3,848,757.03
234
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Total 128,571,908.33 128,901,892.62
Explanation of other cash received related to operating activities:
None.
Other cash paid in connection with operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Service charge 2,233,049.94 2,964,605.13
Out-of-pocket expenses 305,150,285.53 243,947,454.24
Margin and deposit expenses 5,334,308.14 8,772,578.49
Others 15,791,668.91 7,204,934.27
Total 328,509,312.52 262,889,572.13
Explanation of other cash paid related to operating activities:
None.
(2) Other cash received relating to investment activities
Other cash received relating to investment activities
□ Applicable Not applicable
Important cash received relating to investment activities
□ Applicable Not applicable
Explanation of other cash received related to investment activities:
None.
Other cash paid related to investment activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Convertible loan 9,000,000.00
Forex margin 2,234,116.83
Forward foreign exchange liquidation losses paid 8,355,799.98
Total 10,589,916.81 9,000,000.00
Important cash paid related to investment activities
□ Applicable Not applicable
(3) Cash relating to financing activities
Other cash received relating to financing activities
Unit: RMB
235
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Items Amount incurred in the current period Amount incurred in prior period
Margins for bills and notes 16,164,446.24
Discounted unexpired notes receivable 10,045,619.78 4,734,492.75
Total 10,045,619.78 20,898,938.99
Explanation of other cash received related to financing activities:
None.
Other cash paid related to financing activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Share repurchase funds 221,263,958.01 63,157,541.31
Lease payments paid 52,565,752.20 33,787,128.23
Purchase of minority equity 7,800,000.00
Total 281,629,710.21 96,944,669.54
Explanation of other cash paid related to financing activities:
None.
Changes in liabilities arising from financing activities
□ Applicable Not applicable
(4) Description on presenting cash flows on a net basis
Items Relevant facts Basis for net presentation Financial impact
Cash inflows and outflows for projects The net amount is listed in
Cash paid for Cash flow from purchasing and
with fast turnover, large amounts, and "Cash flow from investment",
investment redeeming financial products
short terms which is RMB 318,000,000.00
(5) Major activities and financial impacts that do not involve current cash receipts and payments but
affect the Company's financial position or may affect the Company's cash flow in the future
None.
79. Supplementary information of cash flow statement
(1) Supplementary materials of cash flow statement
Unit: RMB
Amount in the current Amount in the
Supplementary information
period previous period
1. Adjusting net profit to cash flow from operating activities
Net profit 511,948,638.53 582,195,690.84
Plus: provision for asset impairment 73,727,329.86 119,329,962.09
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of 172,559,699.78 144,630,956.80
236
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productive biological assets
Depreciation of right-of-use assets 44,961,252.63 31,615,539.58
Amortization of intangible assets 103,132,673.05 86,884,445.54
Amortization of long-term deferred expenses 52,087,562.28 35,618,497.97
Loss from disposal of fixed assets, intangible assets and other long-term assets
1,483,081.27 1,612,652.02
(income marked with "-")
Losses on scrapping of fixed assets (income marked with "-") 9,967,980.43 1,532,801.47
Loss from changes in fair value (income marked with "-") -12,535,503.26 -87,818,625.99
Financial expenses (income marked with "-") 6,073,896.85 -3,114,719.50
Investment income (income marked with "-") 11,234,586.49 -564,908.47
Decrease in deferred tax assets (increase marked with "-") -24,180,744.09 -48,206,297.70
Increase in deferred tax liabilities (decrease marked with "-") 5,194,327.64 35,552,253.54
Decrease in inventory (increase marked with "-") 270,031,968.61 130,052,908.43
Decrease in operating receivables (increase marked with "-") -172,697,744.27 -623,114,911.86
Increase in operating payables (decrease marked with "-") 324,892,024.61 -51,504,228.19
Others 88,067,468.77 136,353,059.76
Net cash flow from operating activities 1,465,948,499.18 491,055,076.33
2. Major investment and financing activities not involving cash receipts and
payments
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired under finance leases
3. Net change in cash and cash equivalents:
Ending balance of cash 1,494,743,705.76 1,374,281,693.23
Minus: beginning balance of cash 1,374,281,693.23 1,736,104,958.20
Plus: ending balance of cash equivalents
Minus: beginning balance of cash equivalents
Net increase in cash and cash equivalents 120,462,012.53 -361,823,264.97
(2) Net cash paid for obtaining subsidiaries in current period
□ Applicable Not applicable
(3) Net cash received for disposal of subsidiaries in current period
□ Applicable Not applicable
(4) Composition of cash and cash equivalents
Unit: RMB
Items Ending balance Beginning balance
I. Cash 1,494,743,705.76 1,374,281,693.23
Including: cash in stock 1,069,045.22 606,436.16
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Bank deposit available for payment at any
1,333,111,676.06 1,207,740,732.40
time
Other monetary capital for payment at any
160,562,984.48 165,934,524.67
time
III. Balance of cash and cash equivalents
1,494,743,705.76 1,374,281,693.23
at the end of the period
(5) Circumstances where the scope of use is limited but still included in the list of cash and cash
equivalents
□ Applicable Not applicable
(6) Monetary funds other than cash and cash equivalents
Unit: RMB
Amount in the Reasons for not being cash and cash
Items Amount in the current period
previous period equivalents
19,498,565.37 2,477,737.39 Financial products, judicial freezing, etc.
Bank deposit
during the subscription period
36,208,618.69 26,266,640.72 Security deposit, interest accrued but not
Other monetary capital
received at the end of the period
Total 55,707,184.06 28,744,378.11
(7) Description of other major activities
None.
80. Notes to items in change statement of owner's equity
Describe the names and adjusted amounts of "other" items that adjusted the closing balance of the previous year: None.
81. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Foreign currency balance at Balance converted into RMB
Items Exchange rate for conversion
the end of the period at the end of the period
Monetary capital 641,419,708.38
Including: US dollars 72,802,991.87 7.0829 515,654,054.22
Euros
Hong Kong dollars 1,691,738.73 0.9062 1,533,087.47
Vietnamese Dong 70,773,258,160.00 0.0003 20,665,791.38
Euros 1,490,630.26 7.8592 11,715,192.64
Indian Rupee 1,016,225,423.83 0.0851 86,527,529.94
Romanian Leu 1,047,475.43 1.5826 1,657,700.05
Mexican Peso 1,308,820.72 0.4181 547,280.77
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Japanese Yen 61,528,230.00 0.0502 3,089,517.01
Rand 1,182.08 0.3819 451.47
Canadian Dollar 5,422.36 5.3673 29,103.43
Accounts receivable 1,284,511,083.48
Including: US dollars 160,816,368.62 7.0681 1,136,667,300.76
Euros 432,380.06 7.8592 3,398,161.37
Hong Kong dollars 3,864.32 0.9062 3,501.92
Japanese Yen 19,799,148.00 0.0502 994,174.62
Indian Rupee 1,428,158,223.94 0.0851 121,601,960.14
Vietnamese Dong 73,096,150,476.00 0.0003 21,344,075.94
Romanian Leu 317,148.49 1.5826 501,908.73
Financing of accounts 115,550,064.84
receivable
Including: US dollars 16,314,409.03 7.0827 115,550,064.84
Other receivables 17,230,390.50
Including: Romanian Leu 1,464,575.19 1.5826 2,317,788.36
US dollars 546,580.16 7.0764 3,867,833.51
Mexican Peso 1,769,313.90 0.4180 739,601.52
Euros 8,485.83 7.8592 66,691.84
Japanese Yen 2,837,099.00 0.0502 142,459.25
Indian Rupee 16,593,130.11 0.0851 1,412,838.66
Vietnamese Dong 29,736,908,765.00 0.0003 8,683,177.36
Accounts payable 73,538,086.10
Including: US dollars 7,060,979.50 7.0827 50,010,820.69
Euros 1,436.40 7.8726 11,308.25
Mexican Peso 60,314.51 0.4181 25,220.33
Japanese Yen 32,647,724.00 0.0502 1,639,340.17
Indian Rupee 157,713,679.83 0.0851 13,428,688.98
Vietnamese Dong 28,844,889,326.00 0.0003 8,422,707.68
Other account payable 15,715,490.56
Including: Rand 2,615.08 0.4550 1,189.73
Romanian Leu 2,481,848.57 1.5826 3,927,691.65
US dollars 268,312.23 6.0710 1,628,917.91
Mexican Peso 1,856,646.77 0.4181 776,353.13
Euros 264,518.00 7.8469 2,075,634.66
Indian Rupee 10,099,169.33 0.0851 859,913.97
Vietnamese Dong 22,074,621,616.00 0.0003 6,445,789.51
Other descriptions: None.
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(2) Explanation of overseas business entities, including for important overseas business entities,
disclosure of main overseas business locations, recording currency and selection basis as well as
disclosure of reasons for changes in recording currency.
Applicable □ Not applicable
1. Topband India Private Limited, a subsidiary of the Company, is mainly located in Pune City,
Maharashtra, India, with Indian Rupee as the recording currency;
2. Topband (Vietnam) Co., Ltd., a sub-subsidiary of the Company, is mainly located in Binh Duong,
Vietnam, with Vietnamese Dong as the recording currency;
3. TOPBAND SMART DONG NAI (VIETNAM) Co., Ltd., a sub-subsidiary of the Company, is mainly
located in Dong Nai, Vietnam, with Vietnamese Dong as the recording currency;
4. Topband Germany GmbH, a sub-subsidiary of the Company, is mainly located in Unterfhring,
Germany, with Euro as the recording currency;
5. TOPBAND JAPAN Co., Ltd., a sub-subsidiary of the Company, is mainly located in Nagoya, Japan,
with Japanese Yen as the recording currency;
6. Q.B.PTE.LTD, a sub-subsidiary of the Company, is located in Singapore, with Singapore dollar as the
bookkeeping base currency;
7. TOPBAND SMART EUROPE COMPANY LIMITED S.RL., a sub-subsidiary of the Company, is
located in Timisoara, Romania, with Leu as the recording currency;
8. TOPBAND MEXICO, S.DER.L.DEC.V, the sub-subsidiary of the Company, is located in Monterrey,
Mexico, with peso as the recording currency.
82. Lease
(1) The Company as the Lessee
Applicable □ Not applicable
Variable lease payments not included in the measurement of the lease liability
□ Applicable Not applicable
Rental expenses of simplified short-term leases or low-value assets
Applicable □ Not applicable
The short-term rental expenses of RMB 16,112,923.71 included in the cost of related assets or the
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simplified current profit and loss this year.
Situations involving sale and leaseback transactions: None.
(2) The Company as the Lessor
Operating lease as lessor
Applicable □ Not applicable
Unit: RMB
Including: revenue related to variable lease payments not
Items Rental revenue
included in lease collection amount
Rental revenue 23,506,064.47
Total 23,506,064.47
Finance lease as lessor
□ Applicable Not applicable
Undiscounted lease collection amount for each of the next five years.
□ Applicable Not applicable
Reconciliation statement of undiscounted lease collection amount to net investment in leases: None.
(3) Recognition of finance lease sales gains and losses as a manufacturer or distributor
□ Applicable Not applicable
VIII. R&D expenditure
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 527,263,890.90 439,350,510.57
Depreciation and amortization 115,822,616.82 94,521,158.35
Material expenses 55,454,167.38 43,071,054.75
Equity incentive expenses 34,765,522.02 56,384,583.55
Mold fee 21,905,175.37 23,257,757.38
Intermediary service expenses 14,203,295.26 11,669,481.90
Low-value consumables 9,723,117.58 6,593,448.78
Testing expense 11,494,607.23 7,666,376.50
Decoration costs 4,472,201.29 5,348,308.20
Rent and utilities 11,029,383.78 11,474,297.29
Travel expenses 8,479,596.38 4,445,768.88
Others 19,792,769.70 15,879,462.57
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Total 834,406,343.71 719,662,208.72
Including: expensed R&D expenditure 689,969,610.98 592,346,136.09
Capitalized R&D expenditures 144,436,732.73 127,316,072.63
1. R&D projects that meet capitalization conditions
Unit: RMB
Increase in the current Decrease amount in the current
period period
Beginning Transferred
Items Internal Ending balance
balance Recognized as to current
development Others
intangible assets profit and
expenditure
loss
Intelligent controller
70,263,773.15 91,923,909.20 74,231,560.90 87,956,121.45
project
Motor and control
17,993,758.94 11,793,460.67 24,271,089.03 5,516,130.58
system project
Lithium battery project 12,689,781.05 40,719,362.86 12,689,781.05 40,719,362.86
Total 100,947,313.14 144,436,732.73 111,192,430.98 134,191,614.89
Significant capitalized R&D projects
□ Applicable Not applicable
Development expenditure provision for impairment
□ Applicable Not applicable
2. Important outsourced projects under development
□ Applicable Not applicable
IX. Changes in the scope of consolidation
1. Consolidation under different control
(1) Business merger under common control during the period
□ Applicable Not applicable
(2) Merger costs and goodwill
□ Applicable Not applicable
(3) The acquiree's identifiable assets and liabilities on the acquisition date
□ Applicable Not applicable
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(4) Gains or losses arising from the remeasurement of equity interests held before the acquisition date to
fair value
Are there any transactions that achieve business mergers in steps through multiple transactions and obtain
control during the Reporting Period?
□ Yes No
(5) Description on the inability to reasonably determine the merger consideration or the fair value of the
identifiable assets and liabilities of the acquiree at the acquisition date or at the end of the merger period
Not applicable.
(6) Other descriptions
Not applicable.
2. Consolidation under the same control
(1) Merger of companies under common control during the current period
□ Applicable Not applicable
(3) Book value of the merged party's assets and liabilities on the merger date
□ Applicable Not applicable
3. Reverse purchase
Basic information of the transaction, the basis for the reverse purchase of the transaction, whether the
assets and liabilities retained by the listed company constitute the business and its basis, the determination of the
consolidation cost, the amount of the adjustment of the equity when the transaction is processed as an equity
transaction and its calculation: not applicable.
4. Disposal of subsidiaries
Whether there are any transactions or events in this period in which the control of the subsidiary is lost
□ Yes No
Whether there are step-by-step disposal of the investment in a subsidiary through multiple transactions and
loss of control in the current period
□ Yes No
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5. Changes in the scope of consolidation due to other reasons
Explanations for the changes in the scope of the consolidation caused by other reasons (e.g., establishment
of new subsidiaries, or liquidation of subsidiaries, etc.) and relevant circumstances:
1. New subsidiaries (sub-subsidiaries)
During the Reporting Period, the Company established 3 new subsidiaries (sub-subsidiaries), the details of
which are as follows:
Registration Proportion of shareholding
No. Name of subsidiary Registered place
date
Direct Indirect
Hong Kong,
1 Yolaness Technology (HK) Co., Limited 2023/7/4 100%
China
Huizhou,
2 Huizhou Jiuwan Lvyuan Agriculture Co., Ltd. 2023/7/24 100%
Guangdong
3 YOLANESSAFRICA(PTY) LTD South Africa 2023/8/10 100%
2. During the Reporting Period, the Company liquidated 1 subsidiary (sub-subsidiary), the details of which
are as follows:
Proportion of previous
Liquidation shareholding
No. Name of subsidiary Registered place
date
Direct Indirect
1 Topband（Vietnam)Co., ltd Vietnam 2023/10/23 100%
X. Interests in other entities
1. Equities in subsidiaries
(1) Composition of enterprise group
Unit: RMB
Principal Proportion of
Registered Registered Nature of shareholding Acquisition
Name of subsidiary place of
capital place business method
business Direct Indirect
Shenzhen Topband Software Technology Production
1,000,000.00 Shenzhen Shenzhen 100.00% Establishment
Co., Ltd. and sales
Shenzhen Topband Automation Production
35,000,000.00 Shenzhen Shenzhen 100.00% Establishment
Technology Co., Ltd. and sales
Production
Shenzhen Topband Battery Co., Ltd. 50,000,000.00 Shenzhen Shenzhen 100.00% Establishment
and sales
Production
Chongqing Topband Industrial Co., Ltd. 50,000,000.00 Chongqing Chongqing 100.00% Establishment
and sales
HKD 155 Hong
Topband (Hong Kong) Co., Ltd. Hong Kong Investment 100.00% Establishment
million Kong
Huizhou Topband Electrical Technology Production
300,000,000.00 Huizhou Huizhou 100.00% Establishment
Co., Ltd. and sales
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Production
TOPBAND INDIA PRIVATE LIMITED INR 1.96 billion India India 100.00% Establishment
and sales
Consolidation
Shenzhen YAKO Automation Technology Production under
60,000,000.00 Shenzhen Shenzhen 71.54%
Co., Ltd. and sales different
control
Consolidation
Production under
Shenzhen Allied Control System Co., Ltd. 55,999,998.00 Shenzhen Shenzhen 100.00%
and sales different
control
Production
Huizhou Topband Battery Co., Ltd. 50,000,000.00 Huizhou Huizhou 100.00% Establishment
and sales
Ningbo Topband Intelligent Control Co., Production
300,000,000.00 Ningbo Ningbo 100.00% Establishment
Ltd. and sales
Consolidation
Shenzhen Meanstone Intelligent Production under
7,600,000.00 Shenzhen Shenzhen 77.25%
Technology Co., Ltd. and sales different
control
Consolidation
Production under
Shenzhen Yansheng Software Co., Ltd. 1,500,000.00 Shenzhen Shenzhen 71.54%
and sales different
control
Consolidation
Hangzhou Zhidong Motor Technology Production under
1,500,000.00 Hangzhou Hangzhou 53.66%
Co., Ltd. and sales different
control
USD 12.5 Production
Topband（Vietnam)Co.,ltd Vietnam Vietnam 100.00% Establishment
million and sales
TOPBAND SMART DONGNAI USD 33.5 Production
Vietnam Vietnam 100.00% Establishment
(VIETNAM) COMPANY LIMITED million and sales
Topband Germany GmbH EUR 25,000 Germany Germany Sales 100.00% Establishment
TOPBAND JAPAN Co., Ltd JPY 30 million Japan Japan Sales 100.00% Establishment
Shenzhen Topband Supply Chain Services
5,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Co., Ltd.
Shenzhen Topband Investment Co., Ltd. 50,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Shenzhen Spark IOT Technology Co., Ltd. 10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Shenzhen Tunnu Innovation Co., Ltd. 10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Shenzhen Senxuan Technology Co., Ltd. 10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Topband (Qingdao) Intelligent Control Production
10,000,000.00 Qingdao Qingdao 100.00% Establishment
Co., Ltd. and sales
Shenzhen Tengyi Industrial Co., Ltd. 1,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Consolidation
Production under
Taixing Ninghui Lithium Battery Co., Ltd. 105,000,000.00 Taixing Taixing 100.00%
and sales different
control
Shenzhen Topband Automotive
10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Electronics Co., Ltd.
Q.B.PTE.LTD SGD 10,000 Singapore Singapore Sales 100.00% Establishment
Production
TOPBAND MEXICO,S.DE R.L.DEC.V. MXN 20 million Mexico Mexico 100.00% Establishment
and sales
Hong
Tunnu Innovation (Hong Kong) Limited 10,000,000.00 Hong Kong Sales 100.00% Establishment
Kong
TOPBAND SMART EUROPE ROL 20.1816
Romania Romania Sales 100.00% Establishment
COMPANY LIMITED S.R.L. million
Huizhou YAKO Automation Technology Production
50,000,000.00 Shenzhen Shenzhen 71.54% Establishment
Co., Ltd. and sales
Shenzhen Zhongli Consulting Co., Ltd. 2,000,000.00 Shenzhen Qingdao Sales 100.00% Establishment
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TUNNU INNOVATION,INC USD 10,000 USA USA Sales 100.00% Establishment
Nantong Topband Youneng Technology Production
100,000,000.00 Nantong Nantong 100.00% Establishment
Co., Ltd. and sales
Production
Shenzhen Topband Motor Co., Ltd. 10,000,000.00 Shenzhen Shenzhen 100.00% Establishment
and sales
Production
Shenzhen Yueshang Robot Co., Ltd. 10,000,000.00 Shenzhen Shenzhen 100.00% Establishment
and sales
Shenzhen Jingfei Investment Co., Ltd. 10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Production
Huizhou Chiding Technology Co., Ltd. 5,000,000.00 Huizhou Huizhou 100.00% Establishment
and sales
Hong
Yolaness Technology (HK) Co., Limited USD 500,000 Hong Kong Sales 100.00% Establishment
Kong
Huizhou Jiuwan Lvyuan Agriculture Co., Production
5,000,000.00 Huizhou Huizhou 100.00% Establishment
Ltd. and sales
South South
YOLANESS AFRICA (PTY) LTD Sales 100.00% Establishment
Africa Africa
Explanation of the shareholding ratio in the subsidiary being different from the voting rights ratio: None.
Basis for holding half or less of the voting rights but still controlling the investee, and holding more than
half of the voting rights but not controlling the investee:
None.
For important structured entities included in the consolidation scope, the basis for control: None.
Basis for determining whether a company is an agent or a principal: None.
Other descriptions: None.
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Profits and losses Dividends declared and
Ending balance of
Shareholding ratio of attributable to minority distributed to minority
Name of subsidiary minority shareholders'
minority shareholders shareholders during the shareholders during the
equity
current period current period
Shenzhen YAKO
Automation 28.46% -2,359,678.17 83,893,186.88
Technology Co., Ltd.
Explanation of the shareholding ratio of minority shareholder in subsidiary shareholder being different
from the voting rights ratio: None.
Other descriptions: None.
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(3) Major financial information of important non-wholly-owned subsidiaries
Unit: RMB
Ending balance Beginning balance
Name of
subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
Shenzhen
YAKO
Automation 222,174,685.26 301,231,220.59 523,405,905.85 133,458,199.07 95,089,231.86 228,547,430.93 242,689,924.08 138,192,840.18 380,882,764.26 79,730,092.08 6,353,732.52 86,083,824.60
Technology
Co., Ltd.
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Name of subsidiary Total Total
Operating Cash flow from Operating Cash flow from operating
Net profit comprehensive Net profit comprehensive
income operating activities income activities
income income
Shenzhen YAKO Automation 954,217.01 954,217.01
250,599,704.63 -8,717,818.68 -8,717,818.68 -15,977,430.98 248,511,066.02 22,473,846.35
Technology Co., Ltd.
Other descriptions: None.
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(4) Significant restrictions on the use of enterprise group assets and the liquidation of enterprise group
debts
None.
(5) Financial support or other support provided to structured entities included in the scope of the
consolidated financial statements
None.
2. Transactions causing the owner's equity share change but still controlling the subsidiary
(1) Changes in the owner's equity in subsidiaries
None.
(2) Impact of the transaction on minority shareholders' equity and owner's equity attributable to the
parent company
□ Applicable Not applicable
3. Interests in joint venture arrangements or associated enterprises
(1) Important joint ventures or associated enterprises
□ Applicable Not applicable
(2) Major financial information of important joint ventures
□ Applicable Not applicable
(3) Major financial information of important associated enterprises
□ Applicable Not applicable
(4) Summarized financial information of unimportant joint ventures and associated enterprises
Unit: RMB
Ending balance/amount incurred in Beginning balance/amount incurred in the
current period previous period
Joint venture:
Total book value of investment 37,748,179.30 23,550,658.91
Sum of the following items calculated
according to the shareholding ratio
Associated enterprises:
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Sum of the following items calculated
according to the shareholding ratio
--Net profit 1,126,356.29 -2,568,468.91
--Total comprehensive income 1,126,356.29 -2,568,468.91
(5) Statement that there is a material limitation on the ability of the joint venture or associated enterprise
to transfer funds to the Company
None.
(6) Excess losses incurred by the joint ventures or associated enterprises
None.
(7) Unconfirmed commitments related to the investment of joint ventures
None.
(8) Contingent liabilities related to the investment of joint ventures or associated enterprises
None.
4. Important joint operation
□ Applicable Not applicable
5. Rights and interests in structured entities not included in the scope of the consolidated financial
statements
Relevant explanations of structured entities not included in the scope of the consolidated financial
statements: None.
6. Others
None.
XI. Government subsidies
1. Government grants recognized as receivable at the end of the Reporting Period
□ Applicable Not applicable
Reasons for not receiving the expected amount of government subsidies at the expected time
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□ Applicable Not applicable
2. Liabilities involving government subsidies
Applicable □ Not applicable
Unit: RMB
Newly Amount Amount
increased accounted into included in Other Asset-
Accounting Beginning Ending
subsidy in non-operating other income changes in related/revenue-
items balance balance
the current income in the in the current this period related
period current period period
Deferred
13,370,250.14 2,761,100.00 4,985,057.72 11,146,292.42 Asset-related
income
3. Government subsidies included in the current profits and losses
Applicable □ Not applicable
Unit: RMB
Accounting items Amount incurred in the current period Amount incurred in prior period
Other income 32,905,181.89 33,217,045.91
Other descriptions:
None.
XII. Risks associated with financial instruments
1. Risks arising from financial instruments
The main financial instruments of the Company include equity investment, debt investment, borrowings,
accounts receivable, accounts payable, etc. For details of each financial instrument, please refer to the relevant
items in Note VI. The risks associated with these financial instruments and the risk management policies
adopted by the Company to mitigate these risks are described below. In order to ensure all the above risks to be
controlled within a limited scope, the management of the Company has controlled and supervised the risk
exposure.
Sensitivity analysis technique is used for analyzing reasonableness of risk variable and possible impacts
from its variation on current profits and losses or shareholders' equity. Since any risk variable rarely changes in
isolation, and the correlation between the variables will have a significant effect on the final amount affected by
a change in a risk variable, the following contents are based on the assumption that changes in each variable are
made in isolation. The main risks arising from the Company's financial instruments include the market risk,
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credit risk, and liquidity risk.
(I) Classification of financial instruments
1. Book value of financial assets on the balance sheet date
(1) December 31, 2023
Financial assets
Financial assets measured
Financial assets measured at fair value
at fair value and whose
Financial assets measured at amortized with changes included Total
changes are recorded in
cost in the other
current profit or loss
comprehensive income
Monetary capital 1,550,450,889.82 - - 1,550,450,889.82
Tradable financial assets 656,704,087.16 656,704,087.16
Notes receivable 54,198,392.53 54,198,392.53
Accounts receivable 2,431,773,877.56 2,431,773,877.56
Financing of accounts receivable 278,520,642.22 278,520,642.22
Other receivables 36,524,343.36 36,524,343.36
Other equity instrument
41,192,950.00 41,192,950.00
investments
(2) December 31, 2022
Financial assets
Financial assets measured
Financial assets measured at fair value
at fair value and whose
Financial assets measured at amortized with changes included Total
changes are recorded in
cost in the other
current profit or loss
comprehensive income
Monetary capital 1,403,026,071.34 1,403,026,071.34
Tradable financial assets 342,959,450.31 342,959,450.31
Notes receivable 51,791,758.90 51,791,758.90
Accounts receivable 2,549,734,039.66 2,549,734,039.66
Financing of accounts receivable 254,988,202.60 254,988,202.60
Other receivables 77,743,150.98 77,743,150.98
2. Book value of financial liabilities on the balance sheet date
(1) December 31, 2023
Financial liabilities measured at fair value
Financial liabilities with changes included in the current Other financial liabilities Total
profits and losses
Short-term loans 279,348,750.00 279,348,750.00
Notes payable 927,833,178.70 927,833,178.70
Accounts payable 1,957,626,396.34 1,957,626,396.34
Other account payable 151,341,029.40 151,341,029.40
Non-current liabilities due within
370,623,598.03 370,623,598.03
one year
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Financial liabilities measured at fair value
Financial liabilities with changes included in the current Other financial liabilities Total
profits and losses
Long-term loans 437,747,877.47 437,747,877.47
Lease liabilities 61,429,811.03 61,429,811.03
(2) December 31, 2022
Financial liabilities measured at fair value
Financial liabilities with changes included in the current Other financial liabilities Total
profits and losses
Short-term loans 283,351,495.57 283,351,495.57
Notes payable 1,065,652,340.80 1,065,652,340.80
Accounts payable 1,606,446,204.02 1,606,446,204.02
Other account payable 335,047,520.52 335,047,520.52
Non-current liabilities due within
75,356,303.72 75,356,303.72
one year
Long-term loans 581,500,000.00 581,500,000.00
Lease liabilities 73,610,791.09 73,610,791.09
(II) Risk management objective and policy
The Company's risk management objective is to strike an appropriate balance between risks and returns,
reduce the negative impact of risks on the Company's business performance to the lowest level, and maximize
the interests of shareholders and other equity investors. Based on this risk management objective, the basic risk
management strategy of the Company is to determine and analyze various risks faced by it, establish an
appropriate risk bearing bottom line and carry out risk management, and conduct timely and reliable supervision
of various risks to control risks within the limited scope.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations. The Company's exposure
to foreign exchange risks is mainly related to US dollars and Hong Kong dollars. Except for the Company and
its subsidiary, Topband (HK) Co., Limited, which purchases and sells some materials and products in US dollars,
Euros and Hong Kong dollars, TOPBAND INDIA PRIVATE LIMITED, the subsidiary, uses Indian Rupee,
Topband (Vietnam) Co., Ltd. and TOPBAND SMART DONG NAI (VIETNAM) Co., Ltd., the sub-subsidiaries,
use Vietnamese Dong, and Topband Germany GmbH, the sub-subsidiary, uses Euros; TOPBAND JAPAN Co.,
Ltd., the sub-subsidiary, uses Japanese Yen, Q.B.PTE.LTD, the sub-subsidiary, uses Singapore dollars, and
TOPBAND MEXICO, S.DER.L.DEC.V., the sub-subsidiary, uses Mexican Peso; TOPBAND SMART
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EUROPE COMPANY LIMITED S.R.L., the sub-subsidiary, uses Romanian Leu, Tunnu Innovation HK
Limited, the sub-subsidiary, uses Hong Kong dollars, and TUNNU INNOVATION, INC., the sub-subsidiary,
uses US dollars; other major business activities of the Company are settled in RMB.As of December 31, 2023,
the assets and liabilities of the Company are RMB balances, except that the assets or liabilities stated in VI.
(LIX) foreign currency monetary items are US dollars, Hong Kong dollars, Euros, Vietnamese Dong, Japanese
Yen, Indian Rupee, Romanian Leu and Mexican Peso balances, Rand and Canadian dollars. The foreign
exchange risks arising from the assets and liabilities of such foreign currency balances may have an impact on
the Company's operating results.
The Company pays close attention to the impact of exchange rate fluctuations on the Company's foreign
exchange risks. The Company currently takes no measures to avoid foreign exchange risks.
(2) Other price risks
Investments held by the Company and classified as tradable financial assets are measured at fair value on
the balance sheet date. Therefore, the Company is exposed to the risk of changes in the securities market.
2. Credit risk
On December 31, 2023, the maximum credit risk exposure causing the Company's financial losses is
mainly incurred from the other party's failure to fulfill obligations, which leads the Company to financial asset
losses, and financial guarantee undertaken by the Company, including confirmed carrying amounts of financial
assets in consolidated balance sheets; the carrying value only reflects risk exposure of financial instruments
measured at fair value rather than the maximum risk exposure, that varies with the fair value in the future.
In order to reduce credit risks, the Company has set up special positions responsible for determining credit
limits, conducting credit approval, and implementing other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition, the Company reviews the recovery of each individual
receivable on each balance sheet date to ensure that adequate provision is made for uncollectible amounts. As a
result, the management of the Company believes that the credit risk assumed by the Company has been
significantly reduced.
The Company's working capital is deposited in a bank with a high credit rating, so the credit risk of
working capital is low.
The Company has adopted necessary policies to ensure that all sales customers have good credit records.
The Company has no other major credit concentration risk.
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3. Liquidity risk
When managing liquidity risk, the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitors them to meet the Company's operational needs and reduce the impact of cash
flow fluctuations. The management of the Company monitors the use of bank loans and ensures compliance
with loan agreements.
(III) Transfer of financial assets
There were no events related to the transfer of financial assets in the Company this year.
(IV) Offsetting between financial assets and financial liabilities
There were no events related to the offsetting between financial assets and financial liabilities in the
Company this year.
2. Hedging
(1) The Company conducts hedging business for risk management
□ Applicable Not applicable
(2) The Company conducts qualified hedging business and applies hedging accounting
Other descriptions
None.
(3) The Company conducts hedging business for risk management and expects to achieve the risk management objectives,
but does not apply hedging accounting
□ Applicable Not applicable
3. Financial assets
(1) Classification of transfer methods
□ Applicable Not applicable
(2) Derecognized financial assets due to transfer
□ Applicable Not applicable
(3) Financial assets in which asset transfer continues
□ Applicable Not applicable
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Other descriptions
None.
XIII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Unit: RMB
Ending fair value
The second-
Items The first level The third level
level fair
of fair value of fair value Total
value
measurement measurement
measurement
I. Continuous fair value measurement -- -- -- --
(I) Tradable financial assets 656,704,087.16 656,704,087.16
1. Financial asset at fair value and changes through current
656,704,087.16 656,704,087.16
profits and losses
(1) Debt instrument investment 304,370,000.00 304,370,000.00
(2) Equity instrument investment 352,334,087.16 352,334,087.16
(II) Receivables financing 278,520,642.22 278,520,642.22
(1) Bank acceptance bill 126,350,412.69 126,350,412.69
(2) Factored accounts receivable 111,968,012.71 111,968,012.71
(3) Supply chain notes receivable 40,202,216.82 40,202,216.82
Total assets continuously measured at fair value 935,224,729.38 935,224,729.38
II. Non-continuous fair value measurement -- -- -- --
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
None.
3. Continuous and non-continuous second-level fair value measurement items, valuation techniques
adopted and qualitative and quantitative information of important parameters
None.
4. Continuous and non-continuous third-level fair value measurement items, valuation techniques
adopted and qualitative and quantitative information of important parameters
None.
5. Continuous third-level fair value measurement items, adjustment information between beginning and
ending book value and sensitivity analysis of unobservable parameters
None.
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6. For continuous fair value measurement items, if the conversion occurs among different levels in the
current period, the reasons for the conversion and the policies for determining the conversion time point
None.
7. Technical changes in valuation during the current period and the reasons for such changes
None.
8. Fair value of financial assets and financial liabilities not measured at fair value
None.
9. Others
None.
XIV. Related parties and related transactions
1. Profile of parent company of the Company
Proportion of the
Shareholding ratio
Name of parent parent company's
Registered place Nature of business Registered capital of parent company
company voting rights in the
to the Company
Enterprise
Wu Yongqiang Shenzhen 16.73% 16.73%
Profile of parent company of the Company
None.
The ultimate controller of the Company is Wu Yongqiang.
2. Profile of subsidiaries of the Company
For details of the subsidiaries of the Company, please see Note X.1.
3. Information on the joint ventures and associated enterprises of the Company
See the Note X.3 on key joint ventures or associated enterprises of the Company.
Other joint ventures or associated enterprises having related-party transaction in current period or in previous period to form
balance are listed as follows:
Name of joint venture or associated enterprise Relationship with the Company
Dongguan Jujin Plastic Technology Co., Ltd. Shareholding companies of the Company
4. Other related parties
Names of other related parties Relationship between other related parties and the Enterprise
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A company substantially controlled by the relative of the
Shenzhen Jizhiguang Electronics Co., Ltd.
Company's legal representative
Shenzhen Lianghui Technology Co., Ltd. Shareholding companies of the Company
Shenzhen ORVIBO Technology Co., Ltd. Shareholding companies of the Company
Shenzhen HANSC Intelligent Technology Co., Ltd. Shareholding companies of the Company
Guangdong Zhongchuang Zhijia Scientific Research Co., Ltd. Shareholding companies of the Company
Guangdong Huixin Semiconductor Co., Ltd. Shareholding companies of the Company
Fujian Mini Dolphin New Energy Technology Co., Ltd. Shareholding companies of the Company
Chengdu Senwei Technology Co., Ltd. Shareholding companies of the Company
Shenzhen Youbi Technology Co., Ltd. Shareholding companies of the Company
Shanghai Yidong Power Technology Co., Ltd. Shareholding companies of the Company
Companies in which the Company has previously held shares
Pas Electronic Technology (Nanjing) Co., Ltd.
(sold in June 2023)
Jiangsu Donghai Semiconductor Co., Ltd. Shareholding companies of the Company
Jiangxi Sarui Microelectronics Technology Co., Ltd. Shareholding companies of the Company
Shanghai Xinggan Semiconductor Co., Ltd. Shareholding companies of the Company
Shenzhen Jizhi Laser Technology Co., Ltd. Shareholding companies of the Company
Dongguan Jujin Plastic Technology Co., Ltd. Shareholding companies of the Company
5. Related party transaction
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance of
services
List of goods purchased/services received
Unit: RMB
Amount Approved Amount
Related transaction Is the transaction
Related party incurred in the transaction incurred in
content limit exceeded
current period limit prior period
Shenzhen Jizhiguang Electronics Purchase of raw 16,943,886.18
12,448,395.74 25,000,000.00 No
Co., Ltd. materials
Shenzhen ORVIBO Technology Purchase of raw 28,062.77
5,534.37 No
Co., Ltd. materials
Jiangsu Donghai Semiconductor Purchase of raw 38,775.00
95,491.50 No
Co., Ltd. materials
Jiangxi Sarui Microelectronics Purchase of raw
87.00 No
Technology Co., Ltd. materials
Dongguan Jujin Plastic Technology Purchase of raw
17,192,446.68 No
Co., Ltd. materials
List of goods sold/services provided
Unit: RMB
Related transaction Amount incurred in the current Amount incurred in prior
Related party
content period period
Shenzhen ORVIBO Technology
Goods on hand 12,408,176.66 23,106,968.00
Co., Ltd.
Related transactions involving the purchase and sale of goods and the provision and acceptance of services
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None.
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
□ Applicable Not applicable
(3) Related lease
□ Applicable Not applicable
(4) Related party guarantee situation
□ Applicable Not applicable
(5) Interbank lending of related parties
□ Applicable Not applicable
(6) Asset transfer and debt restructuring of related parties
□ Applicable Not applicable
(7) Remuneration of key management personnel
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Remuneration of key management personnel 14,263,600.00 12,635,800.00
(8) Other related transactions
None.
6. Receivables and payables due to related parties
(1) Item receivable
Unit: RMB
Ending balance Beginning balance
Project name Related party Provision Provision
Book Book
for bad for bad
balance balance
debts debts
Accounts
Shenzhen ORVIBO Technology Co., Ltd. 3,747,603.20 116,175.70 6,487,666.99 201,117.68
receivable
Accounts Fujian Mini Dolphin New Energy Technology 1,753,420.02 158,509.17
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receivable Co., Ltd.
Prepayments Shenzhen ORVIBO Technology Co., Ltd. 3,037.05
(2) Payables
Unit: RMB
Book balance at the Book balance at the
Project name Related party
end of the period beginning of the period
Accounts payable Shenzhen Jizhiguang Electronics Co., Ltd. 866,888.49 1,411,710.91
Accounts payable Jiangsu Donghai Semiconductor Co., Ltd. 51,217.50 43,708.50
Accounts payable Guangdong Huixin Semiconductor Co., Ltd. 311.50
Jiangxi Sarui Microelectronics Technology Co.,
Accounts payable 100,087.00
Ltd.
Accounts payable Dongguan Jujin Plastic Technology Co., Ltd. 8,514,044.84
Notes payable Shenzhen Jizhiguang Electronics Co., Ltd. 110,000.00
Guangdong Zhongchuang Zhijia Scientific
Contractual liabilities 132,075.47
Research Co., Ltd.
Other account payable Dongguan Jujin Plastic Technology Co., Ltd. 39,000.00
7. Commitment of related parties
None.
8. Others
None.
XV. Share-based payment
1. General situation of share-based payments
Applicable □ Not applicable
Unit: RMB
Granted in the Exercised in the
Grant object Released in the current period Invalidated in the current period
current period current period
category
Number Amount Number Amount Number Amount Number Amount
2021 Restricted
Stock Incentive 9,351,936.00 67,614,497.28 22,700,384.00 164,123,776.32
Plan
Total 9,351,936.00 67,614,497.28 22,700,384.00 164,123,776.32
Stock options or other equity instruments outstanding at the end of the period
□ Applicable Not applicable
Other descriptions:
None.
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2. Equity-settled share-based payments
Applicable □ Not applicable
Unit: RMB
Method for determining the fair value of the equity instrument Fair value of equity instruments = (market price on grant date -
on the grant date grant price) * number of shares
Important parameters of fair value of equity instruments on the
Stock market price on grant date
grant date
Basis for determining the number of exercisable equity Estimation shall be based on the latest available changes on
instruments vesting employee number and other subsequent information.
Reasons for the significant difference between the estimates of Terminating the implementation of the 2021 Restricted Stock
the current period and that of the previous period Incentive Plan by the Company
Accumulated amount of equity-settled share-based payments
152,886,906.12
included in capital reserves
Total amount of expenses recognized by equity-settled share-
79,290,114.83
based payments in the current period
Other descriptions:
None.
3. Cash-settled share-based payments
□ Applicable Not applicable
4. Share-based payment for the current period
Applicable □ Not applicable
Unit: RMB
Grant object category Equity-settled share-based payment Cash-settled share-based payment
2021 Restricted Stock Incentive Plan 79,290,114.83 0.00
Total 79,290,114.83 0.00
Other descriptions:
In December 2023, the Company terminated the implementation of the 2021 Restricted Stock Incentive
Plan, and has accelerated the recognition of share-based payment expenses that would have been recognized
during the remaining waiting period.
5. Modification and termination of share-based payments
On December 1, 2023, the 4th (Extraordinary) Meeting of the 8th Board of Directors of the Company
deliberated and passed the Proposal on Terminating the Implementation of the Restricted Stock Incentive Plan
for 2021 and Repurchasing and Cancelling Restricted Stocks. In view of the fact that the current economic
situation and internal and external environment have changed significantly compared to when the Company's
equity incentive plan was announced, the continued implementation of the 2021 Restricted Stock Incentive Plan
is difficult to achieve the expected incentive purposes and effects. The Company then decided to terminate the
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implementation of this incentive plan and repurchase and cancel the restricted stocks that have been granted but
have not yet been released from the restriction on sale. With the termination of the implementation of this
incentive plan, the Company repurchased and cancelled 20,496,224 restricted shares that had been granted but
not yet released from the restrictions on sale to 1,024 incentive targets. According to the relevant provisions of
the Accounting Standards for Business Enterprises, for the repurchase and cancellation of share-based payments
corresponding to the termination of the incentive plan and the related release period, the accrued share-based
payment expenses are not reversed, and the share-based payment expenses that shall have been recognized
within the remaining waiting period are recognized at an accelerated rate.
6. Others
None.
XVI. Commitments and contingencies
1. Important commitments
Important commitments that existed on the balance sheet date
As of December 31, 2023, the Company has no commitments that need to be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
(2) The important contingencies not required to be disclosed shall be explained as well
No signification contingencies need to be disclosed by the Company.
3. Others
None.
XVII. Events after the balance sheet date
1. Important non-adjusting matters
□ Applicable Not applicable
2. Profit distribution
3. Sales return
None.
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4. Explanation of other events after the balance sheet date
None.
XVIII. Other important matters
1. Correction of early accounting errors
(1) Retrospective restatement
□ Applicable Not applicable
(2) Future application
□ Applicable Not applicable
2. Debt restructuring
None.
3. Asset replacement
(1) Exchange of non-monetary assets
(2) Replacement of other assets
4. Annuity plan
None.
5. Discontinued operation
□ Applicable Not applicable
6. Division information
(1) Basis for determining reportable segments and accounting policies
None.
(2) Financial information of reportable segments
□ Applicable Not applicable
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(3) If a company does not have a reportable segment, or cannot disclose the total assets and liabilities of
each reportable segment, it shall explain the reason.
None.
(4) Other descriptions
None.
7. Other important transactions and matters that have an impact on investors' decisions
None.
8. Others
None.
XIX. Notes to main items of financial statements of the parent company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Book balance at the beginning of the
Aging Book balance at the end of the period
period
Within 1 year (including 1 year) 1,287,212,115.69 1,781,879,318.05
1-2 years 5,268,760.84 5,015,015.44
2-3 years 791,447.31 1,465,220.68
Above 3 years 2,078,206.45 1,991,907.84
3-4 years 97,063.40 659,343.12
4-5 years 648,578.33 1,332,564.72
Above 5 years 1,332,564.72
Total 1,295,350,530.29 1,790,351,462.01
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(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion of Book value Proportion Book value
Amount Proportion Amount Amount Proportion Amount
provision of provision
Accounts receivable with
single provision for bad 120,945,555.34 9.34% 2,994,574.69 2.48% 117,950,980.65 450,165,784.04 25.14% 450,165,784.04
debts
Including:
Accounts receivable with a
single significant amount
119,881,794.96 9.26% 1,930,814.31 1.61% 117,950,980.65 449,954,452.01 25.13% 449,954,452.01
and single bad debt
provision
Accounts receivable with
insignificant single amount
1,063,760.38 0.08% 1,063,760.38 100.00% 0.00 211,332.03 0.01% 211,332.03
but separate bad debt
provision
Accounts receivable with
provision for bad debts by 1,174,404,974.95 90.66% 36,854,741.91 3.14% 1,137,550,233.04 1,340,185,677.97 74.86% 43,496,510.19 3.25% 1,296,689,167.78
portfolio
Including:
Accounts receivable with
provision for bad debts by
1,174,404,975.00 90.66% 36,854,741.91 3.14% 1,137,550,233.04 1,340,185,677.97 74.86% 43,496,510.19 3.25% 1,296,689,167.78
combination (aging analysis
method)
Total 1,295,350,530.29 100.00% 39,849,316.60 3.08% 1,255,501,213.69 1,790,351,462.01 100.00% 43,496,510.19 2.43% 1,746,854,951.82
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Single provision for bad debts: 2,994,574.69
Unit: RMB
Beginning balance Ending balance
Name Provision Proportion Reasons
Provision for
Book balance for bad Book balance of for
bad debts
debts provision provision
Accounts receivable with a single
significant amount and single bad 449,954,452.01 119,881,794.96 1,930,814.31 1.61%
debt provision
Accounts receivable with
insignificant single amount but 211,332.03 1,063,760.38 1,063,760.38 100.00%
separate bad debt provision
Total 450,165,784.04 120,945,555.34 2,994,574.69
Provision for bad debts by portfolio:
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivable with provision
for bad debts by combination (aging 1,174,404,975.00 36,854,741.91 3.14%
analysis method)
Total 1,174,404,975.00 36,854,741.91
Explanation of the basis for determining the portfolio:
None.
If the provision for bad debts of accounts receivable is made according to the general model of expected credit losses:
□ Applicable Not applicable
(3) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for
43,496,510.19 -3,643,333.74 3,859.85 39,849,316.60
bad debts
Total 43,496,510.19 -3,643,333.74 3,859.85 39,849,316.60
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable Not applicable
(4) Accounts receivable actually written off in the current period
□ Applicable Not applicable
(5) Accounts receivable and contract assets of top five ending balances grouped by debtors
Unit: RMB
Ending balance of Ending balance Ending balances Proportion to total Ending balance of bad debt
Name of unit accounts of contract of accounts ending balances of provision for accounts
receivable assets receivable and accounts receivable receivable and provision
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contract assets and contract assets for impairment of contract
assets
No. 1 309,660,920.87 309,660,920.87 23.91% 9,733,472.14
No. 2 79,232,145.18 79,232,145.18 6.12% 2,456,196.50
No. 3 69,890,866.55 69,890,866.55 5.40%
No. 4 65,510,995.69 65,510,995.69 5.06% 2,030,840.87
No. 5 62,180,414.80 62,180,414.80 4.80% 1,927,592.86
Total 586,475,343.09 586,475,343.09 45.29% 16,148,102.37
2. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Other receivables 359,906,911.54 902,544,005.07
Total 359,906,911.54 902,544,005.07
(1) Interest receivable
1) Classification of interest receivable
□ Applicable Not applicable
2) Significant overdue interest
□ Applicable Not applicable
3) Disclosure by bad debt provision method
□ Applicable Not applicable
4) Bad debt provision withdrawn, recovered or reversed in the current period
□ Applicable Not applicable
5) Interests receivable actually written off in the current period
□ Applicable Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
□ Applicable Not applicable
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2) Significant dividends receivable aged over 1 year
□ Applicable Not applicable
3) Disclosure by bad debt provision method
□ Applicable Not applicable
4) Bad debt provision withdrawn, recovered or reversed in the current period
□ Applicable Not applicable
5) Dividends receivable actually written off in the current period
□ Applicable Not applicable
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
Nature of payment Book balance at the end of the period Book balance at the beginning of the period
Other receivables 359,906,911.54 902,544,005.07
Total 359,906,911.54 902,544,005.07
2) Disclosure by aging
Unit: RMB
Aging Book balance at the end of the period Book balance at the beginning of the period
Within 1 year (including 1 year) 357,493,959.23 899,507,615.15
Subtotal within 1 year (including 1 year) 357,493,959.23 899,507,615.15
1-2 years 1,691,269.55 1,718,310.98
2-3 years 547,927.64 877,475.83
Above 3 years 4,195,547.95 3,684,156.58
3-4 years 556,684.11 2,500,962.00
4-5 years 2,458,782.00 69,484.58
Above 5 years 1,180,081.84 1,113,710.00
Total 363,928,704.37 905,787,558.54
3) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Category Book balance Provision for bad debts Book balance Provision for bad debts
Book value Book value
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
of of
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provision provision
Single
provision
352,237,197.66 96.79% 352,237,197.66 891,733,595.91 98.45% 891,733,595.91
for bad
debts
Provision
for bad
11,691,506.71 3.21% 4,021,792.83 34.40% 7,669,713.88 14,053,962.63 1.55% 3,243,553.47 23.08% 10,810,409.16
debts by
portfolio
Total 363,928,704.37 100.00% 4,021,792.83 1.11% 359,906,911.54 905,787,558.54 100.00% 3,243,553.47 0.36% 902,544,005.07
Single provision for bad debts: 0
□ Applicable Not applicable
Provision for bad debts by portfolio:
□ Applicable Not applicable
Explanation of the basis for determining the portfolio:
□ Applicable Not applicable
Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
First stage Second stage Third stage
Expected credit loss for
Provision for bad debts Expected credit loss for Total
Expected credit loss in the entire duration
the entire duration (no
the next 12 months (credit impairment
credit impairment)
occurred)
Balance as of January 1, 2023 3,243,553.47 3,243,553.47
Balance as of January 1, 2023
in the current period
Accrual in the current period 778,239.36 778,239.36
Balance as of December 31,
4,021,792.83 4,021,792.83
2023
Basis for division into different stages and bad debt provision ratio
□ Applicable Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
4) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Reversal or Ending balance
balance Provision Others
reversal write-off
Provision for
3,243,553.47 778,239.36 4,021,792.83
bad debts
Total 3,243,553.47 778,239.36 4,021,792.83
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable Not applicable
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5) Other receivables actually written off in the current period
□ Applicable Not applicable
6) Other receivables of top five ending balances grouped by debtors
Unit: RMB
Proportion to total Ending balance of
Name of
Nature of payment Ending balance Aging ending balances of provision for bad
unit
other receivables debts
No. 1 Transactions with related parties 141,979,246.90 Within 1 year 39.01% 0.00
No. 2 Transactions with related parties 73,966,100.00 Within 1 year 20.32% 0.00
No. 3 Transactions with related parties 70,481,867.11 Within 1 year 19.37% 0.00
No. 4 Transactions with related parties 33,183,871.71 Within 1 year 9.12% 0.00
No. 5 Transactions with related parties 10,500,000.00 Within 1 year 2.89% 0.00
Total 330,111,085.72 90.71% 0.00
7) Reported in other receivables due to centralized fund management
□ Applicable Not applicable
3. Long-term equity investment
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
3,981,563,889.88 3,981,563,889.88 3,952,516,773.78 3,952,516,773.78
subsidiaries
Investment in
associated
18,272,947.90 12,433,655.05 5,839,292.85 18,320,001.21 12,433,655.05 5,886,346.16
enterprises and
joint ventures
Total 3,999,836,837.78 12,433,655.05 3,987,403,182.73 3,970,836,774.99 12,433,655.05 3,958,403,119.94
(1) Investment in subsidiaries
Unit: RMB
Beginning Changes in increase or decrease in the current Ending
Beginning balance of period balance of
Ending balance
Investee balance (book provision Provision provision
Additional Decrease in (book value)
value) for for Others for
impairment investment investment impairment
impairment
Shenzhen
Topband Software
24,095,074.68 2,055,463.18 26,150,537.86
Technology Co.,
Ltd.
Shenzhen
Topband Battery 623,157,548.45 5,204,768.09 628,362,316.54
Co., Ltd.
Shenzhen 35,743,370.43 767,956.73 36,511,327.16
269
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Topband
Automation
Technology Co.,
Ltd.
Chongqing
Topband
211,139,884.59 568,427.16 211,708,311.75
Industrial Co.,
Ltd.
Topband (Hong
528,408,500.00 528,408,500.00
Kong) Co., Ltd.
Huizhou Topband
Electrical 1,024,724,989.
10,555,982.28 1,035,280,971.92
Technology Co., 64
Ltd.
Ningbo Topband
Intelligent Control 670,583,468.55 610,490.14 671,193,958.69
Co., Ltd.
Shenzhen Allied
Control System 125,645,445.51 2,759,602.07 128,405,047.58
Co., Ltd.
Shenzhen
Meanstone
Intelligent 10,000,000.00 10,000,000.00
Technology Co.,
Ltd.
TOPBAND
INDIA PRIVATE 195,026,748.97 195,026,748.97
LIMITED
Shenzhen YAKO
Automation
350,014,659.96 350,014,659.96
Technology Co.,
Ltd.
Shenzhen
Topband
100,236,468.18 78,303.80 1,000,000.00 99,314,771.98
Investment Co.,
Ltd.
Shenzhen
Topband Supply
5,000,000.00 5,000,000.00
Chain Services
Co., Ltd.
Shenzhen
Senxuan
8,074,247.94 -38,922.91 8,035,325.03
Technology Co.,
Ltd.
Topband
(Qingdao)
30,000,000.00 30,000,000.00
Intelligent Control
Co., Ltd.
Shenzhen
Topband Motor 10,666,366.88 1,485,045.56 12,151,412.44
Co., Ltd.
Huizhou Chiding
Technology Co., 5,000,000.00 5,000,000.00
Ltd.
Shenzhen Jingfei
Investment Co., 1,000,000.00 1,000,000.00
Ltd.
3,952,516,773.
Total 30,047,116.10 1,000,000.00 3,981,563,889.88
78
270
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
(2) Investment in associated enterprises and joint ventures
Unit: RMB
Changes in increase or decrease in the current period
Profits
Beginning and Ending
Beginning Declaratio Ending
balance of Addition Decrease losses on Adjustment Other n of Provision balance of
balance investme balance
Investee provision al in to other change distributio for Other provision
(book nt (book
for investme investme comprehensi s in n for cash impairme s for
value) recognize value)
impairment nt nt ve income equity dividends nt impairment
d under
or profits
equity
method
I. Joint venture
II. Associated enterprises
Shenzhen
-
Daka 5,886,346. 5,839,292.
47,053.3
Optoelectroni 16 85
1
cs Co., Ltd.
Tai'an
Yuchengxin
12,433,655. 12,433,655.
Power Supply
05 05
Technology
Co., Ltd.
-
5,886,346. 12,433,655. 5,839,292. 12,433,655.
Subtotal 47,053.3
16 05 85 05
1
-
5,886,346. 12,433,655. 5,839,292. 12,433,655.
Total 47,053.3
16 05 85 05
1
The recoverable amount was determined as the net amount of fair value less disposal costs.
□ Applicable Not applicable
The recoverable amount was determined based on the present value of expected future cash flows.
□ Applicable Not applicable
Reasons for the significant inconsistency between the above-mentioned information and the information
used in the impairment test in previous years or external information
None.
Reasons for the significant inconsistency between the information used in the impairment test of the
Company in previous years and the actual situation of the current year
None.
(3) Other descriptions
4. Operating income and operating cost
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
271
Full Text of Annual Report 2023 of Shenzhen Topband Co., Ltd.
Main business 4,375,490,048.36 3,610,380,372.83 5,013,119,851.86 4,207,791,500.54
Other business 181,114,199.53 160,679,242.60 189,528,792.86 170,094,464.62
Total 4,556,604,247.89 3,771,059,615.43 5,202,648,644.72 4,377,885,965.16
Information related to performance obligations:
None
Other descriptions:
None.
5. Investment income
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Long-term equity investment income accounted by
-47,053.31 -88,713.69
the cost method
Investment income from disposal of trading financial
-12,299,596.79
assets
Forward foreign exchange settlement profit and loss -3,529,674.98 2,994,236.07
Income of financial products 2,384,294.62
Interest income received 182,700.00
Total -13,309,330.46 2,905,522.38
6. Others
XX. Supplementary Information
1. Schedule of current non-recurring profit and loss
Applicable □ Not applicable
Unit: RMB
Items Amount Description
Non-current assets disposal profit and loss -11,399,766.84
Government subsidies included in current profits and losses
(except those that are closely related to the normal business of
the Company, conform to national policies and regulations, are 32,905,181.89
enjoyed according to certain standards and have a lasting impact
on the Company's profits and losses)
Profits and losses due to fair value changes arising from the
financial assets and liabilities held by the non-financial business,
as well as the profits and losses arising from the disposal of -1,302,568.51
financial assets and liabilities, except for the effective hedging
business related to the normal business of the Company
One-time share-based payment due to cancellation or
-28,092,840.35
modification of the stock incentive plan
Other non-operating income and expenses other than those 21,796,444.13
mentioned above
Other profits and losses that conform to the definition of non- 1,477,128.99
recurring profit and loss
272
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Minus: amount affected by income tax 11,184,636.52
Amount affected by minority shareholders' equity (after tax) 604,156.43
Total 3,594,786.36 --
Details of other items of profits and losses that conform to the definition of non-recurring profit and loss:
□ Applicable Not applicable
None.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit and Loss as recurring profit and loss items
□ Applicable Not applicable
2. Return on equity and earnings per share
Earnings per share
Weighted return
Profits of the Reporting Period Basic earnings per share Diluted earnings per share
on average equity
(RMB/share) (RMB/share)
Net income attributable to the ordinary
8.54% 0.41 0.41
shareholders of the Company
Net profit attributable to the ordinary
shareholders of the Company after 8.48% 0.40 0.40
deduction of non-recurring profit and loss
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable Not applicable
(2) Difference between the net profit and net assets in the financial reports disclosed in accordance with
both foreign accounting standards and Chinese accounting standards at the same time
□ Applicable Not applicable
(3) Reasons for differences in accounting data under domestic and foreign accounting standards. If the
data audited by an overseas audit institution is adjusted for differences, the name of the overseas audit
institution shall be indicated
4. Others
273
