Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
Shenzhen Topband Co., Ltd.
Semi-annual Report 2024
Topband Investor Relations Applet
July 2024
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
Section I Important Notes, Contents and Definitions
The Board of Directors, the Board of Supervisors and directors, supervisors and senior
executives of the Company hereby assure that the content set out in the Semi-annual Report is true,
accurate and complete. It shall be free from false records, misleading statements or major omissions,
and shall bear individual and joint legal liabilities therein.
Wu Yongqiang, Chairman of the Company, and Luo Muchen, head of accounting and the
accounting department, hereby declare that: the data disclosed in financial reports of the semi-annual
report is true, accurate and complete.
All directors have attended the Board Meeting at which this Semi-annual Report was scrutinized.
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.
The Company is not faced with significant risks affecting its financial position and sustainable
profitability, but may be with such risks as a decline in market demand due to the domestic and
international macroeconomic downturn, technology upgrading, intensified competition in the
industry, fluctuations in the prices of raw materials and fluctuations in exchange rates. For more
detailed risk information, please see "Risks faced by the Company and countermeasures" in Section
III of the Report. Investors are kindly requested to be alert to investment risks.
The Company plans not to pay cash dividend, to issue bonus shares, or to increase the share
capital by capital reserve.
The Report is prepared in Chinese and translated into English. Should there be any discrepancies
or misunderstandings between the two versions, the Chinese version shall prevail.
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Contents
Section I Important Notes, Contents and Definitions .......................................................................... 2
Section II Company Profile and Primary Financial Indicators ............................................................ 6
Section III Management Discussion and Analysis ............................................................................. 10
Section IV Corporate Governance ..................................................................................................... 40
Section V Environmental and Social Responsibility ......................................................................... 48
Section VI Important Matters............................................................................................................. 50
Section VII Share Change and Shareholders ..................................................................................... 61
Section VIII Information on Preferred Shares ................................................................................... 70
Section IX Relevant Information of Bonds........................................................................................ 71
Section X Financial Report ................................................................................................................ 72
Section XI Other Reported Data ...................................................................................................... 223
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Directory of documents for future reference
I. Accounting statements containing the signatures and seals of the legal representative, the finance
chief and the accounting department head.
II. The originals of all the company documents publicly disclosed in newspapers designated by the
China Securities Regulatory Commission during the reporting period and the original manuscripts of
announcements.
III. Original copy of the Semi-annual Report 2024 bearing the signature of the Chairman
All the above documents are ready and 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 From January 1, 2024 to June 30, 2024
Huizhou Topband Refer to Huizhou Topband Electrical Technology Co., Ltd.
YAKO Automation Refer to Shenzhen YAKO Automation Technology Co., Ltd.
Yanxun Investment Refer to Shenzhen Yanxun Investment Enterprise (Limited Partnership)
Yanyun Investment Refer to Shenzhen Yanyun Investment Enterprise (Limited Partnership)
Allied 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
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
OPE Refer to Outdoor Power Equipment
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Section II Company Profile and Primary Financial Indicators
I. Company profile
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
Topband
Company name (if any)
Name of the Company in foreign
Shenzhen Topband Co., Ltd.
language (if any)
Name of the Company in foreign
Topband
language (if any)
Legal representative of the
Wu Yongqiang
Company
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, Shiyan Sub- Topband Industrial Park, Keji Second Road, Shiyan
Address
district, Bao'an District, Shenzhen Sub-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. Miscellaneous
1. Contact information of the Company
Whether the registered address, office address and its postal code, website, e-mail address and other information of
the Company have changed during the reporting period
□ Applicable Not applicable
The registered address, office address and its postal code, website, E-mail address, etc. of the Company were not
changed during the reporting period, and are as given in the Annual Report 2023.
2. Information disclosure and storage place
Whether the information disclosure and storage locations of the Semi-annual Report have changed during the
reporting period
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□ Applicable Not applicable
The stock exchange website and the names and websites of the media on which the semi-annual report of the
Company were disclosed and the location where the semi-annual report of the Company are kept were not changed
during the reporting period, and are as given in the Annual Report 2023.
3. Other relevant information
Whether other relevant information of the Company has changed during the reporting period
□ Applicable Not applicable
IV. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes No
Increase/decrease in this
Same period
Reporting period reporting period over the
previous year
same period of last year
Operating income (RMB) 5,015,785,165.59 4,256,121,153.72 17.85%
Net profit attributable to shareholders of listed companies
388,828,515.18 258,040,692.16 50.68%
(RMB)
Net profit attributable to shareholders of listed companies after
373,156,776.26 254,103,854.80 46.85%
deducting non-recurring profit and loss (RMB)
Net cash flow from operating activities (RMB) 470,314,174.67 527,842,471.18 -10.90%
Basic earnings per share (RMB/share) 0.31 0.20 55.00%
Diluted earnings per share (RMB/share) 0.31 0.20 55.00%
Weighted return on average equity 6.10% 4.37% 1.73%
Increase/decrease at the end
End of the End of the of the reporting period
reporting period previous year compared with the end of the
previous year
Total assets (RMB) 12,019,262,403.92 11,184,119,392.80 7.47%
Net assets attributable to shareholders of listed companies
6,403,953,083.07 6,284,917,468.50 1.89%
(RMB)
V. Differences in accounting data under domestic and overseas 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 Chinese Accounting Standards at the same
time
□ Applicable Not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with
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International Accounting Standards and those disclosed in accordance with Chinese Accounting Standards during
the reporting period.
2. Difference between the net profit and net assets in the financial reports disclosed in accordance with both
Overseas 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 reports disclosed in accordance with Overseas
Accounting Standards and those disclosed in accordance with Chinese Accounting Standards during the reporting
period.
VI. Items and amount of non-recurring profit and loss
Applicable □ Not applicable
Unit: RMB
Items Amount Description
Profits and losses on disposal of non-current assets (including the offset of the provision for impairment
-3,096,619.05
of assets accrued)
Government grants credited to income statement (except for government grants that are closely related
to the normal operation of the Company, comply with national policies and regulations, enjoy in 15,418,390.00
accordance with determined criteria, and have a continuous impact on the profit and loss of the Company)
Profit/loss arising from changes in fair value of financial assets and liabilities held by non-financial
enterprises, and profits and losses on disposal of financial assets and liabilities, except for the effective 2,159,263.40
hedging business related to the normal operation of the Company,
Reversal of impairment of receivables individually tested for impairment 3,369,846.80
Other non-operating income and expenses other than those mentioned above 776,803.05
Minus: amount affected by income tax 2,854,659.99
Amount affected by minority shareholders' equity (after tax) 101,285.29
Total 15,671,738.92
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
There is no such situation of defining the non-recurring profit and loss items listed in the Explanatory Announcement
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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. Main business engaged by the Company during the reporting period
(I) Main business and products of the Company
During the reporting period, we focused on the development, production and sales of intelligent control system
solutions. Based on the core technology system of "four electrics and one network" (electric control, motor, battery,
power and IoT platform), our solutions have been widely applied in four major sectors, including home appliances,
power tools, new energy and industry automation, providing customers around the world with innovative, efficient
and reliable customized services. We have been continuing to strengthen our ability in technological innovation and
improve our keen insight and rapid response to market needs. By continuously optimizing and upgrading our
technology platform, we are committed to providing our customers with more intelligent and personalized control
solutions to help them achieve technological breakthroughs and business growth in their respective fields.
Intelligent Control Home
Solutions Power tools New energy Industry
appliances
Applications in "Four
Industries"
Electric control Motor Battery Power
Core technology of technology technology technology technology
"Four Electrics and
One Network"
IoT platform
1. The Company's core technologies: "four electrics and one network" (electric control, motor, battery, power
and IoT platform).
1.1 Electric control technologies
Electric control technologies take micro-computer as the core to achieve intelligent control, involving a number
of technological fields such as sensing technology, power electronics technology, signal processing technology,
communication technology, interactive technology, power and energy conversion technology and electromagnetic
compatibility. We have profound accumulation in the key fields of automatic control technology, human-computer
interactive technology, embedded computing technology, machine vision technology, robotics technology,
intelligent sensor technology, motion control technology, etc.
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We have developed hundreds of electric control technology platforms that can meet the diversified needs of
home appliances, power tools, new energy and industry automation products, and our electric control technology
has been widely applied in products such as controllers, E&M integration, power and intelligent batteries.
1.2 Motor technologies
The motor technologies play a key role in converting electrical energy into kinetic energy in intelligent control
systems. By focusing on the continuous innovation of motors with high efficiency, low noise, high precision and
high stability, we have developed a comprehensive technical capability from design, simulation, testing and
verification to large-scale manufacturing of motor and built dozens of advanced motor product platforms such as
brushless DC motor (BLDC), coreless motor, stepper motor, servo motor, etc.
Our motor technologies have been successfully applied in many fields, such as power tools, automation
equipment, intelligent appliances, new energy vehicles, robots and other fields. Especially in the fields of power
tools and automation equipment, our motor technologies have become the leading technology in the industry, with
remarkable results in applications in new energy vehicles, robots and medical sectors, and has been widely
recognized in the market.
1.3 Battery technologies
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
technologies involve multiple fields like materials science, electrochemistry, electronics and control engineering,
On the basis of our technological accumulation over the years, we have developed complete technological
capabilities for design, development, customization and production, covering cell technology (CELL), battery
management technology (BMS) and battery pack (PACK) systems.
In respect of battery management system (BMS), our technology has achieved a degree of accuracy and
reliability that is leading in the industry. With advanced algorithms and control strategies, our BMS enables real-
time monitoring and management of battery status to ensure the optimal performance and safe operation of the
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battery system. Our technological innovation in this field has made us a market leader in providing efficient and
safe battery solutions for energy storage systems, backup power, electric energy conversion, portable devices, etc.
1.4 Power technologies
The power technologies, as the key to the efficient conversion of electric energy, cover analog power, switching
power and digital power technologies. We have extensive technology platforms in this field, focusing on providing
efficient and reliable power solutions.
For the power conversion system (PCS), we have adopted innovative energy management strategies and a
high-precision power quality control technology to optimize the charging and discharging process of the energy
storage system and improve the overall performance and life of the system. Our PCS technology supports a wide
range of battery types and configurations to meet the requirements of energy storage applications of different scales.
In respect of photovoltaic inverter technology, we have significantly improved the energy conversion efficiency of
solar panels through advanced control algorithms and efficient electrical energy conversion circuit design, which
support 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
applying high-efficiency power electronic conversion technologies and intelligent charging control algorithm. Our
DC charging pile design is featured in high power density and excellent heat dissipation performance, and can
ensure the high efficiency and stability of the charging process.
1.5 IoT platform
The IoT platform technology, as the key to coupling the sensing layer, the network layer and the application
layer, enables us to realize the intelligent linking of devices and the efficient management of data. Our IoT platform
consists of complete technical capabilities from modules and intelligent terminals to applications (APPs) and
Platform as a Service (PaaS), providing an integrated solution for multiple industries.
In particular, we have made significant progress in our cloud platform for home energy management. By
intelligent analysis and processing of household energy usage data, the platform helps users optimize their energy
consumption, to realize conservation and efficient use of energy. By seamlessly integrating with smart household
devices, the platform provides users with a comprehensive, easy-to-use energy management and control solution.
In the development of the optical storage and charging cloud platform, we have applied advanced IoT
technologies to realize the intelligent collaboration among solar power generation, energy storage and charging
facilities. The platform can not only improve the efficiency of energy utilization, but also provide users with
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convenient energy management and use experiences, to promote the wide application of renewable energies.
In addition, our digital energy management cloud platform also provides comprehensive energy monitoring,
analysis and optimization services for industrial, commercial and public facilities through big data and artificial
intelligence technologies. The platform can help users reduce energy consumption, improve the sustainability of
energy use, and support businesses and the society to achieve green development goals.
2. Main products of the Company: To provide customized system solutions for four major sectors: home
appliances, power tools, new energy and industry automation.
Our products are mainly classified into four categories: controller, motor, power 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 Solutions for 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 used in various fields, such as HVAC, kitchen appliances,
cleaning appliances, health care, lighting, and intelligent home.
Application
scenarios
Products
2.2 Solutions for power tools
The power tool industry mainly includes power, garden, and other professional tools. We provide brand
customers in the power tool industry with customized products and services from product conceptualization, design,
development to manufacturing and delivery. Our products mainly include four categories, i.e. controller, motor,
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battery and power, and some intelligent machine products.
Application
scenarios
Products
2.3 Solutions for new energy
Our new energy business has developed a complete product matrix covering core components, complete
machine and system solutions. In respect of core components, we have completed the deployment of the core
products, including charging module, cell, BMS, PCS and EMS. In respect of complete machine, we have developed
a complete series of products, including AC/DC charging pile, household energy storage, C&I energy storage,
backup power for communication, and portable energy storage. In terms of system solutions, we have developed
complete solutions around scenarios such as optical storage and charging, zero-carbon parks, and home green energy
by integrating the core technical capabilities of complete machine and cloud platform.
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Products Application scenarios
2.4 Industrial solutions
In the industrial control sector, our main business is the research and development, production and sales of
special industrial intelligent control products, mainly including stepping, servo drive and motion control products.
We mainly provide downstream automation equipment customers with products such as controller, drive and motor,
and the downstream applications involve such industries as 3C electronics, robotics, medical equipment,
semiconductor equipment, PV, lithium-ion battery, etc. We are committed to helping automation equipment
manufacturers improve the equipment design performance, reduce equipment manufacturing costs, and speed up
the development of new equipment.
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Application
scenarios
Products
(II) The industry in which the Company operates
1. Basic situation of the industry
Intelligent controllers, as high-tech products integrated with advanced automatic control technology, computer
technology, sensing technology, microelectronics and power electronics technology, play the role of "nerve center"
and "brain" in electronic products, like the nervous system of people. By collecting, processing and analyzing
various information and commands, intelligent controllers can realize the intelligent driving and control of the
controlled object, so as to complete various tasks. The wave of intelligent substitution has completely changed our
way of life and work. As one of the core components of intelligence, intelligent controller has a wide range of
applications, including home appliances, smart homes, smart buildings, power tools, industry and automation,
automobile electronics, new energy, medical equipment and so on.
With the continuous integration and development of new technologies on artificial intelligence, robotics, IoT
and cloud computing, the application fields of intelligent controllers have been further expanded. For example, by
combining with AI technology, intelligent controllers are now able to predict and adapt to the behaviors and needs
of users, enabling more personalized services. In the field of industry automation, intelligent controllers combined
with robotics are able to perform more complex tasks, improve production efficiency and safety, and reduce costs
at the same time. It is worth mentioning that humanoid robots are also beginning to go into the reality. From home
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 crucial role in them.
Technological progress not only accelerates the iteration of products, but also indicates a broader development
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prospect of the intelligent controller sector. We are standing on the threshold of intelligent technology revolution,
and the integration of intelligent controllers with AI and robotics is reshaping the way we live and work, opening
up infinite possibilities. In the future, with the continuous progress and innovation of technology, we can look
forward to the emergence of more new products, new business formats and new models, which will further promote
the development of the intelligent controller sector.
2. Position in industry
As a leader in intelligent control field, we are not only a pioneer in providing intelligent control solutions
worldwide, but also a synonym for innovation. Our success is because of our insistence on the core value concept
of "AgileInnovationPartnership" and our relentless drive for technological innovation. By building an integrated
technology system of "four electrics and one network" (electric control, motor, battery, power and IoT platform),
we provide advanced customized solutions for four major sectors, including home appliances, power tools, new
energy and industry automation.
Our core competence lies in our "platform-based technological innovation ability, partnering customer service
ability and systematic rapid response ability". The combination of the three abilities has not only promoted our
continuous progress, but also helped us build close relationships with our customers leading in many sectors. Now,
we have become the leading provider of intelligent control solutions for the home appliance and power tool
industries, and lead innovation in the new energy and industry automation sectors. Our leadership is not only
reflected in our market share and technological innovation, but more importantly, we have become a key force
driving the entire industry forward.
II. Analysis of core competitiveness
1. Platform-based technological innovation ability
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
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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, we have the "controller + motor + battery + power + cloud platform" overall solution capability
that is unique in the industry, the ability to continuously develop innovative new category solutions, and can help
customers innovate and win in the competition.
2. Partnering customer service ability
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.
Through deployment in many regions, we have established international production bases in the Pearl River
Delta, Yangtze River Delta, Southeast Asia, North America and Europe, have built an international market platform
to improve the local service ability from in terms of management ability and resource allocation, and have set up a
number of overseas offices to cooperate closely with customers. We have established in-depth cooperative
partnership with outstanding brand customers at home and abroad in various business fields. Through long-term
cooperation and mutual development, we have gained public praises and a good brand reputation in the industry,
and have been widely recognized and praised by our customers.
3. Systematic fast response ability
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
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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.
III. Analysis of main business
In the first half of 2024, the economic sentiment indexes of the industry have picked up, and we are committed
to using cutting-edge intelligent technologies and clean energy application technologies to develop to a more
intelligent and low-carbon future world. Although the industry faces many challenges such as multi-regional
development, supply chain reconstruction, higher export freights, trade protectionism, etc., we firmly believe that
with the general trend of interconnection of everything, intelligence and low carbon, the new energy industry will
also usher in upgrades, and the downstream application scenarios are constantly expanding and upgrading. We will
continue to adhere to the high-quality development strategy, actively grasp the structured opportunities, keep
developing our local and overseas businesses based on our strengths of being a platform-based enterprise and in
international operations, enhance our product power and improve our internal operation capability by putting more
efforts into technological innovation, and at the same time, accelerate the development of overseas market,
strengthen applications in the emerging industries and increase cooperation with the top customers to increase the
market share. During the reporting period, we achieved growth in both revenue and gross profit rate in all the
business sectors.
In the first half of 2024, with the efforts of all Topband employees, we realized an operating income of RMB
5.016 billion, with a year-on-year growth rate of 17.85%, a net profit attributable to shareholders of the listed
company of RMB 389 million, with a year-on-year growth rate of 50.68%, and a net profit attributable to
shareholders of the listed company of RMB 373 million after deducting non-recurring profits and losses, with a
year-on-year growth rate of 46.85%. In the 2nd quarter, we realized a revenue of RMB 2.698 billion, a new high in
a single quarter, with a quarter-on-quarter growth rate of 16.37% and a year-on-year growth rate of 19.31%, and a
net profit attributable to parent company of RMB 204 million after deducting non-recurring profits and losses, with
a quarter-on-quarter growth rate of 20.32% and a year-on-year growth rate of 25.18%. In the 2nd quarter, we
achieved a net cash flow of RMB 371 million from operating activities, with a quarter-on-quarter growth rate of
272.82%. In the 2nd quarter, the exchange rates fluctuated less than the same period last year, and the net profit
after deducting non-recurring profits and losses and profits and losses on foreign exchange achieved a substantial
increase on a year-on-year basis.
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(I) We realized an operating income of RMB 5.016 billion during the reporting period, with a year-on-
year growth rate of 17.85%. The business developments in the first half of 2024 are as follows:
1. Power tool sector: The economic sentiment indexes of the sector in the first half of 2024 recovered, and the
downstream inventory reached the minimum level. Our power tool sector realized a revenue of RMB 1.959 billion,
with a year-on-year growth rate of 20.90%, and a gross profit rate of 24.62%, with a year-on-year growth rate of
1.12%.
Electrification and cordless is the trend for power tools and OPE products. Electric and cordless tools have the
product advantages of better user experience, cost effectiveness, environmental protection and low noise, and are
expected to accelerate the substitution of manual and fuel tools and devices. In European and American markets,
power tools are very popular, and the demands for new products and technological upgrading continue to increase.
In the emerging markets, with the penetration of electrified and cordless tools to professional, industrial and
consumer scenarios, it will bring continuous growth momentum for the development of the power tool industry. Top
customers lay emphasis on faster supply chain transformation and product innovation to meet the market demand
for high-performance power tools more quickly and to realize diversified supply and energy consumption reduction.
As a partner of the power tool top customers leading in the world, we focus on the top customers and industrial
and professional products with high value to continue to increase sales, make special breakthroughs in the
competitive products, and incubates new business opportunities such as high-voltage and high-power tools. We have
developed the core technologies on electric control, battery pack BMS, motor, IoT and intelligent system and
complete machine, to provide customers with one-stop customized solutions. We are putting continuous efforts to
promote industry innovation, give full play to the advantages of technology platform and product platform, provide
customers with differentiated solutions based on different product positioning, and develop product application
opportunities in the surrounding scenarios of power tool use. At the same time, we rely on our leading advantage of
developing overseas markets and excellent operational capabilities to meet the multi-regional supply demands of
the top customers to achieve further increases in the share of power tools. The share of power tools in the total
revenue increased from 36.05% in 2023 to 39.05% at the end of the reporting period.
2. Home appliance sector: With the lowering of home appliance inventory and the recovery of the economic
sentiment indexes, the home appliance sector realized a sales revenue of RMB 1.773 billion in the first half of 2024,
with a year-on-year growth rate of 18.15%. With the increase of intelligent upgrading and low carbon needs of the
industry, the pace of integration of AI, voice and IoT technologies with the current technologies has become faster,
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technological innovation based products have expanded the market space, and the penetration rate of intelligent
home appliances in the emerging markets has increased. As Chinese enterprises with proprietary brands are
developing overseas markets to building a global supply chain, the market share further concentrates towards the
top enterprises.
During the reporting period, there were some short-term disturbance factors such as higher raw material prices
and rising sea freights in the industry, and the consumer confidence index improved and was still at a historical low,
but the overall impact on our home appliance business was limited. As an important partner of home appliance
brands, when brand owners pay more attention to insight into consumer needs and fast iteration of products, our
advantages in platform technology can quickly empower brand customers, and enable many home appliance top
customers in the European, American, Japanese and emerging markets to increase their market share. The segments
we have selected have all realized growth, with the refrigerator, washing machine, air conditioner, small home
appliance product, and cleaning product segment contributing most of the growth, where the air conditioner segment
that mainly focusing on the overseas markets realized the largest growth and is continuously developing at a high
growth rate. The concentration rate of the top 10 customers of the home appliance segment increased, and by
selecting product types with high growth rate for the emerging markets, we supplied more cost effective products
in virtue of our strengths in product power and supply chain to realize higher growth rates; we have made
deployment in many regions in a prospective way to stabilize the share subject to the industrial transfer of customers,
and have also developed business opportunities of overseas merger and acquisition and overseas customers for
Chinese enterprises. We will continue to intensively develop opportunities with the existing customer and expand
new categories to realize multi-category coverage for the major customers, and actively develop various incremental
markets and new customers to further increase the market share. In the future, we are expected to maintain a stable
growth rate while the industry develops.
3. New energy sector: With the core technologies on charging, cell, cloud platform, BMS, PCS and EMS, we
supply two major categories of products to customers, i.e. controller and components, and complete machine and
system, which are mainly applied in the energy storage and new energy vehicle fields. We actively grasp the
incremental market opportunities in grid-side energy storage, C&I energy storage, and new energy vehicle charging.
In the first half of 2024, we realized a sales revenue of RMB 1.04 billion in the new energy sector, with a year-on-
year growth rate of 13.74%.
We realized a revenue of RMB 760 million in the energy storage sector, with a year-on-year growth rate of
13.74%. Challenges and opportunities both exist in the energy storage sector, and supply-demand changes in the
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sector both bring about a decline in costs and accelerate the rapid increase in end demands. By supplying
autonomous and controllable components and products, complete machine products with proprietary brand and
multi-scenario solutions, we actively expand the application of household energy storage, industrial and commercial
energy storage, PV power generation, energy storage and charging, "zero-carbon park" and other scenarios in
Europe, America, Asia, South Africa, West Africa and other countries to meet the differentiated needs of different
customer types such as complete machine factories, operators, and government entities. During the reporting period,
we realized fast growth in the grid-side energy storage, commercial and industrial energy storage and BMS segments,
and made breakthroughs for inverter angle customers, and launched some new products, including hydraulic cooling
all-in-one unit, PV power generation, energy storage and charging cloud, BMS of the new generation for commercial
and industrial energy storage. The product power continued to increase. The energy storage demand is huge in the
context of global energy transition. We will continue to provide multi-scenario integrated energy storage solutions
and digitalization based upgrading for these sectors to accelerate the process of energy transition.
We realized a revenue of RMB 280 million in the new energy vehicle sector, with a year-on-year growth rate
of 14.43%. The growth rates in the PV power generation, energy storage and charging segment and the core
components for intelligent driver assistance were high. We attach importance to the development of autonomous
and controllable technologies, continuously improve the product platform, have launched certified new products for
DC charging piles, AC charging piles and chargers according to market demands, research on multi-scenario PV
power generation, energy storage and charging integrated solutions, and have implemented multiple solutions for
the PV power generation, energy storage and charging scenario in many provinces and cities across the country.
Since our PV power generation, energy storage and charging cloud platform was launched, a total of 270,000 kWh
was charge as of the end of the reporting period, an increase of 533% compared to the end of 2023.
During the reporting period, we realized a revenue of RMB 362 million from controller and component
products, with a year-on-year growth rate of 31.39%, a fast growth, and a revenue of RMB 678 million from
complete machine and system, with a year-on-year growth rate of 6.11%.
4. Industrial control sector: In the first half of 2024, we realized a sales revenue of RMB 156 million, with a
year-on-year growth rate of 13.82%, where the year-on-year growth rate of servo drive and motor system was 16%.
We mainly provide PLC, motion control cards, stepper/servo drives, motors and other core components for
downstream automation equipment and industrial robots, as well as motion control solutions based on industry
processes, which are widely used in such sectors as 3C electronics, industrial robot, medical equipment, PV
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equipment, semiconductor equipment, adhesive dispensing, engraving, SMT, etc.
Industrial control sector: The automation market is maturing, and the market is transiting from rapid growth
to a steady market. The domestic industrial control sector in the med-and-long term will benefit from "industrial
upgrading + machine replacement", domestic replacement, digitalization, intelligence, and low-carbon development.
In recent years, the attention of domestic industrial control customers has shifted from the efficiency to the security
of supply. Domestic enterprises are superior in term of security of supply, product cost-effectiveness, fast response
from engineers and other aspects. There are greater opportunities in the industry chain security and high-end
manufacturing.
During the reporting period, the Company, based on the accumulated processes, product design, continuous
improvement of product reliability, as well as quick response to user needs and feedback, has successfully met the
needs of differentiated applications while enhancing the performance, and helped manufacturers of automation
equipment improve the equipment design performance, reduce the cost of equipment manufacturing, and speed up
the development of new equipment, so as to accelerate the degree of automation of the manufacturers. The Company
is committed to becoming the "leader of efficient and easy-to-use servo and stepping products" in the industrial
control sector. During the reporting period, by focusing on the key sectors and key customers, we achieved
substantial revenue growth in such sectors as 3C, harness, engraving, adhesive dispensing, clothing, etc., and the
sales volume of servo products increased by more than 30% on a year-on-year basis.
Robot sector: We have developed the core component products and technologies for controller and algorithm,
coreless motor, servo drive, battery, etc., and our products, including controller, battery pack, BMS, motor and
integrated solution, have been applied in industrial robots, rail-mounted robots for medical purposes, mowing robots
and cleaning robots. We have the first-mover advantages of early deployment, top technology in China and a large
share in the segment of coreless motor. During the reporting period, we actively confirmed the needs of local
humanoid robot customers, completed the prototype production, sent samples to some top customers, and actively
developed market opportunities in humanoid robots, low-altitude economy and other fields.
(II) During the reporting period, we realized a net profit of RMB 373 million after deducting non-
recurring profits and losses, with a year-on-year growth rate of 46.85%, and a net profit attributable to
parent company of RMB 389 million, with a year-on-year growth rate of 50.68%. The main reasons are as
follows:
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1. Improved profitability: In the first half of 2024, the economic sentiment indexes of the industry that we
operate recovered and the supply-demand environment was friendly. By further reducing the cost and improving
the efficiency of the old businesses, and improving the comprehensive profitability through technological
innovation and adding new products, we achieved a combined gross margin of 23.90% during the reporting period,
an increase of 2.32% on a year-on-year basis, and the gross margin of several sectors all increased on a year-on-
year basis. The gross profit rate of export in the first half of the year also benefited from the slight depreciation of
China Yuan.
2. Three period expenses (selling expenses, R&D expenses, and management expenses): The total amount
of the three period expenses increased by approximately RMB 98 million on a year-on-year basis, mainly due to
investment for new businesses and new markets. The R&D expenses increased by approximately RMB 71 million
on a year-on-year basis, mainly due to investment for the development of new products, accelerated integration and
application of AI, IOT, 5G and other technologies, and quicker R&D of new businesses and new technologies; the
selling expenses increased by approximately RMB 38 million on a year-on-year basis, mainly due to the increased
expenses for domestic and overseas exhibition fees for market development and for new business and market
development in the first half of the year; the management expenses decreased by RMB 11 million on a year-on-year
basis, mainly due to the optimized internal management, improved operation efficiency and other measures of the
Company.
(III) During the reporting period, we realized a net cash flow of RMB 470 million from operating
activities, decreased by 10.9% on a year-on-year basis. The main reasons are as follows:
In the 1st and 2nd quarters, the net cash flows from operating activities were RMB 99 million and RMB 371
million respectively, with a quarter-on-quarter growth rate of 272.82% in the 2nd quarter. The net cash flow of the
1st quarter was mainly due to our increased raw material payments for increased demands; in the 2nd quarter, our
payments for raw materials and for employee remunerations both decreased, leading to a substantial increase in the
net cash flow from operating activities on a quarter-on-quarter basis.
(IV) Progress of overseas bases:
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In the first half of the year, the total revenue from our overseas bases in Vietnam, India, Mexico and Romania
was RMB 1.011 billion, with a year-on-year growth rate of 72.65%. The percentage of the revenue from overseas
bases in the total revenue increased to 20.16%, and that in the revenue from export sales increased to 31.19%.
Year-on-year changes in major financial metrics
Unit: RMB
Same period Year-on-year
Reporting period Reason for change
previous year increase/decrease
Operating
5,015,785,165.59 4,256,121,153.72 17.85%
income
Operating cost 3,817,211,001.65 3,337,826,833.15 14.36%
Compared with the same period of last year, it increased
by RMB 37.75 million during the reporting period, an
increase of 26.39%. This was mainly due to the increase
Selling expenses 180,788,131.47 143,034,445.61 26.39% in remunerations of employees for new business
development during the reporting period, as well as the
increase in travel expenses, exhibition fees and
advertising expenses incurred for market development.
Compared with the same period of last year, it decreased
by RMB 10.89 million during the reporting period, a
decrease of 5.40%. It was mainly due to the optimized
Management
190,587,638.62 201,474,565.60 -5.40% internal management and improved operation efficiency
expenses
of the Company and the absence of equity incentive
expenses during the reporting period compared with the
same period of last year.
Compared with the same period of last year, it increased
by RMB 22.21 million during the reporting period, an
Finance
-28,781,584.15 -50,992,475.24 43.56% increase of 43.56%. It was mainly due to the decreased
expenses
gains from foreign exchange during the reporting period
compared with the same period of last year.
Compared with the same period of last year, it increased
by RMB 30.73 million during the reporting period, an
Income tax
36,778,573.81 6,043,729.44 508.54% increase of 508.54%. It was mainly due to the income
expenses
tax expense for the increased profit during the reporting
period.
Compared with that at beginning of period, it increased
by RMB 66.46 million during the reporting period, an
increase of 17.09%. It was mainly due to the increased
R&D investment 455,397,817.14 388,935,143.31 17.09% investment for the key strategic projects such as
frequency variable control system, energy storage
inverter, charging pile, and C&I energy storage BMS,
etc.
Compared with the same period of last year, it decreased
Net cash flow by RMB 57.53 million during the reporting period, a
from operating 470,314,174.67 527,842,471.18 -10.90% decrease of 10.90%. It was mainly due to the increased
activities payments for remunerations and cash payments during
the reporting period.
Compared with the same period of last year, it increased
by RMB 155.5 million during the reporting period, an
Net cash flow
increase of 33.18%. It was mainly due to the decrease in
from investment -313,160,118.83 -468,657,578.93 33.18%
cash payments for purchasing long-term assets during
activities
the reporting period compared with the same period of
last year.
Net cash flow -120,296,374.28 284,893,844.15 -142.22% Compared with the same period of last year, it decreased
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from financing by RMB 405.19 million during the reporting period, a
activities decrease of 142.22%. It was mainly due to the increased
cash payments for borrowings repayment during the
reporting period.
Compared with the same period of last year, it decreased
Net increase in
by RMB 279.66 million during the reporting period, a
cash and cash 78,953,413.52 358,617,037.74 -77.98%
decrease of 77.98%. It was mainly due to the decrease
equivalents
in net cash flows from financing activities:
Significant changes in the Company's composition or source of profit during the reporting period
□ Applicable Not applicable
There was no significant change in the Company's composition or source of profit during the reporting period.
Composition of operating income
Unit: RMB
Reporting period Same period previous year
Year-on-year
Proportion in Proportion in increase/decrease
Amount Amount
operating income operating income
Total operating income 5,015,785,165.59 100% 4,256,121,153.72 100% 17.85%
By industry
Intelligent control
5,015,785,165.59 100.00% 4,256,121,153.72 100.00% 17.85%
electronics industry
By product
Power tools 1,958,638,686.77 39.05% 1,620,045,611.60 38.06% 20.90%
Home appliances 1,772,717,316.12 35.34% 1,500,351,397.24 35.25% 18.15%
New energy 1,039,957,148.27 20.73% 914,360,730.57 21.48% 13.74%
Industry 155,602,830.56 3.10% 136,712,993.99 3.21% 13.82%
Intelligent solutions and
88,869,183.87 1.77% 84,650,420.32 1.99% 4.98%
others
By region
Domestic 1,777,778,390.12 35.44% 1,634,215,062.54 38.40% 8.78%
Overseas 3,238,006,775.47 64.56% 2,621,906,091.18 61.60% 23.50%
The situation of industries, products or regions accounting for more than 10% of the Company's operating income
or operating profit
Applicable □ Not applicable
Unit: RMB
Increase/decrease Increase/decrease Increase/decrease
of operating of operating of gross profit
Operating Gross profit
Operating cost income over the costs over the rate over the
income rate
same period of same period of same period of
last year last year last year
By industry
Intelligent control
5,015,785,165.59 3,817,211,001.65 23.90% 17.85% 14.36% 2.32%
electronics industry
By product
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Power tools 1,958,638,686.77 1,476,432,898.03 24.62% 20.90% 19.12% 1.12%
Home appliances 1,772,717,316.12 1,362,701,938.28 23.13% 18.15% 13.91% 2.86%
New energy 1,039,957,148.27 803,710,510.83 22.72% 13.74% 8.56% 3.69%
By region
Domestic 1,777,778,390.12 1,412,106,339.80 20.57% 8.78% 6.28% 1.87%
Overseas 3,238,006,775.47 2,405,104,661.85 25.72% 23.50% 19.71% 2.35%
The Company's main business data for the last period adjusted according to the caliber at the end of the reporting
period when the statistical caliber of the Company's main business data is adjusted during the reporting period
□ Applicable Not applicable
IV. Analysis of non-main business
Applicable □ Not applicable
Unit: RMB
Proportion in Whether it is
Amount Explanation of reasons
total profit sustainable
Mainly investment incomes from financial
Investment income 2,025,727.35 0.48% No
products purchased during the reporting period
-
Asset impairment loss -4.95% Provision for decline in the inventory value made No
21,090,974.63
Non-operating Customer default compensations and various
1,739,303.34 0.41% No
income fines
Non-operating Mainly losses on scrapping of non-current asset
5,563,887.00 1.31% No
expenses and quality deductions by customers
Impairment losses on Mainly accounts receivable, bad debt provision
-7,181,453.97 -1.68% No
credit accrued
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
End of the reporting period End of the previous year
Increase/decrease Explanation of
Proportion in Proportion in of proportion major changes
Amount Amount
total assets total assets
Monetary No significant
1,601,763,206.84 13.33% 1,550,450,889.82 13.86% -0.53%
capital changes
Accounts No significant
2,674,255,585.49 22.25% 2,431,773,877.56 21.74% 0.51%
receivable changes
No significant
Inventory 1,847,349,634.73 15.37% 1,653,816,715.51 14.79% 0.58%
changes
Investment No significant
101,985,215.34 0.85% 103,404,402.85 0.92% -0.07%
property changes
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Long-term
No significant
equity 37,614,643.25 0.31% 37,748,179.30 0.34% -0.03%
changes
investment
No significant
Fixed assets 2,327,328,836.76 19.36% 2,102,862,886.72 18.80% 0.56%
changes
Construction No significant
527,629,047.04 4.39% 568,107,950.65 5.08% -0.69%
in progress changes
Right-of-use No significant
91,208,911.39 0.76% 101,446,985.74 0.91% -0.15%
assets changes
Short-term No significant
328,398,035.22 2.73% 279,348,750.00 2.50% 0.23%
loans changes
Contractual No significant
172,851,052.12 1.44% 168,681,571.89 1.51% -0.07%
liabilities changes
Long-term No significant
505,888,984.86 4.21% 437,747,877.47 3.91% 0.30%
loans changes
Lease No significant
55,996,796.93 0.47% 61,429,811.03 0.55% -0.08%
liabilities changes
2. Major overseas assets
Applicable □ Not applicable
Proportion
Control Whether
of foreign
measures there is a
Asset Reasons of Operation Earning assets to
Asset size Location to ensure significant
details formation mode position net assets
the safety risk of
of the
of assets impairment
Company
Financial
Operation Investment R&D, supervision
Pune,
Center in and 586,483,931.77 production and 42,469,097.16 9.16% No
India
India establishment and sales external
audit
Financial
Vietnam Dong
Investment R&D, supervision
Dong Nai Nai
and 889,524,666.33 production and 163,820,976.26 13.89% No
Operation Province,
establishment and sales external
Center Vietnam
audit
Other
None
disclosures
3. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
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Profits
and
losses Impair
from Changes in ment
Purchase amount Amount sold in
Opening changes cumulative fair accrued Amount at the
Items in the current the current Other changes
balance in fair value included in the end of the year
period period
value in in equity current
the period
current
period
Financial assets
1. Tradable
financial assets
(excluding 656,704,087.16 243,585,487.17 936,047,600.68 885,430,333.27 -1,370,000.00 705,951,354.57
derivative
financial assets)
4. Other equity
instrument 41,192,950.00 41,192,950.00
investments
Subtotal of
697,897,037.16 243,585,487.17 936,047,600.68 885,430,333.27 -1,370,000.00 747,144,304.57
financial assets
Total of the
697,897,037.16 243,585,487.17 936,047,600.68 885,430,333.27 -1,370,000.00 747,144,304.57
above
Financial
0.00 0.00
liabilities
Contents of other changes
None.
Whether there are significant changes in the measurement attributes of the Company's main assets during the
reporting period
□ Yes No
4. Restricted asset rights by the end of the reporting period
Refer to Section X Financial Report, VII. Notes to Items in Consolidated Financial Statements, 31. Assets with
limited ownership or use right for details.
VI. Investment analysis
1. General situation
Applicable □ Not applicable
Investment during the reporting period Investment amount in the same period of
Range of change
(RMB) last year (RMB)
0.00 40,000,000.00 -100.00%
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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) Derivative investments for hedging during the reporting period
Applicable □ Not applicable
Unit: RMB ten thousand
Proportion
of
Profits investment
and amount at
losses Changes Purchase Amount the end of
from in amount sold the period
Initial
Types of derivatives Beginning changes cumulative during during Ending in net
investment
investment amount in fair fair value the the amount assets of
amount
value in included reporting reporting the
the in equity period period Company
current at the end
period of the
reporting
period
Trading of foreign
10,644.08 9,917.28 0 0 726.8 9,917.28 726.8 0.11%
exchange derivatives
Total 10,644.08 9,917.28 0 0 726.8 9,917.28 726.8 0.11%
Explanation of The Company has made corresponding accounting and presentation for foreign-exchange derivative
accounting policies and transaction to be done according to Accounting Standards for Business Enterprises No. 22 - Recognition
specific accounting and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 24 -
principles for hedging Hedge Accounting, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial
business during the Instruments issued by Ministry of Finance, and other regulations and guides. Foreign exchange
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reporting period, as well derivative contracts were initially and subsequently measured using tradable financial assets, which fair
as whether there have value is priced by financial institutions based on open market trading data, and there has been no
been significant changes significant change compared to the last reporting period.
compared to the last
reporting period
Explanation of actual
The amount of our foreign exchange derivative transactions credited to the current actual profits and
profits and losses during
losses during the reporting period is RMB 155,200.
the 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
effect
costs 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 during the II. Risk control measures
reporting period
(including but not limited 1. The Company has formulated the Internal Control System for Forward Exchange Transactions,
to market risk, liquidity which provides clear regulations on the Company's foreign exchange transaction operating principles,
risk, credit risk, approval authority, internal operating procedures, responsible departments and individuals, information
operational risk, legal isolation measures, and risk management for forward exchange transaction, and can meet the needs of
risk, etc.) 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 Determine changes in fair value based on market quotes from external financial institutions.
derivatives during the
reporting period, and the
disclosure of specific
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methods used and
relevant assumptions and
parameters set in the
analysis of the fair value
of derivatives
Litigation (if applicable) Not applicable
Disclosure date of Board
of Directors
announcement for January 5, 2024
approval of derivatives
investment (if any)
2) Derivative investments for speculation during the reporting period
□ Applicable Not applicable
We had no derivative investments for 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
Amou
Total
nt of
amount Cumulati
raised
Total of raised Cumulativ ve total
Purpose capital
amount of capitals e total amount Total
Ways Total and s
Total Net raised for amount of proportio amount
Year of of amount of destinati which
amount of amount of capitals change raised n of of
raising raising raised on of have
raised raised used in of capitals raised unused
capitals capital capitals unused been
capitals funds the purpose with capitals raised
s used raised idle for
current during changed with capitals
capitals more
period the purposes changed
than
reporting purposes
two
period
years
Public
offering Not
of
2019
converti
57,300.00 56,543.65 8,741.98 56,543.65 8,241.59 8,241.59 14.38% 0 applicabl 0
ble e
bonds
Tempora
ry
Non-
public
replenish
2021 offering 105,000.00 103,684.71 9,577.86 96,911.87 0 69,144.83 65.85% 6,772.84 ment and 0
of deposit
shares in the
special
account
32
Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
for raised
capitals
Total -- 162,300.00 160,228.36 18,319.84 153,455.52 8,241.59 77,386.42 47.68% 6,772.84 -- 0
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). Through priority placement to original shareholders,
offering of the balance after priority placement to original shareholders (including the part for which the original shareholders gave up priority
placement) to public investors online through the trading system of Shenzhen Stock Exchange, and stand-by underwriting of the part with the
subscription amount less than RMB 573 million by lead underwriters. 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 RMB common stocks 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. Used amount and balance of raised funds in the first half of 2024
(1) Use of capitals raised by public issuing of convertible bonds in 2019
As of June 30, 2024, the cumulative input amount of the raised funds was RMB 565.4365 million,including RMB 456.7858 million of raised
funds directly input, RMB 26.2348 million repayment for input before the raised funds were fully funded, and RMB 82.4159 million permanently
supplemented as working capital from the balance raised fund after settlement of the fund raising projects.
(2) Non-public offering of shares to raise capitals in 2022
As of June 30, 2024, the cumulative input amount of the raised funds was RMB 969.1187 million, including RMB 748.1943 million of raised
funds directly input, RMB 45.3987 million repayment for input before the raised funds were fully funded, and RMB 175.5257 million of raised
fund investment projects paid with banker's acceptance and fund raising projects input with equal amount of raised funds. As of June 30, 2024,
RMB 63 million of idle raised funds was used for temporary supplementation of working capital; as of June 30, 2024, the balance amount in the
raised fund account was RMB 6.1031 million (including interest income).
(2) Situation of projects committed when raising capitals
Applicable □ Not applicable
Unit: RMB ten thousand
Whether
Where
the
Investment Whether there is any
Committed project Total Total Amount The date Benefits
Accumulated progress the significant
investment projects has been committed investment invested when the achieved
investment by the end expected change in
and investment changed investmen after during the project is during the
by the end of of the benefits the
direction of over (includi t of raised adjustment reporting ready for reporting
the period (2) period are feasibility
raised capitals ng some capitals (1) period use period
(3)=(2)/(1) achieved of the
changes
project
)
Committed investment projects
Construction project
Already
of Topband East
No 56,543.65 48,302.06 500.39 48,302.06 100.00% put into -1,307.13 No No
China Operation
operation
Center
Topband Huizhou
Not Not Not
No. 2 Industrial Park Yes 73,684.71 4,539.87 0 4,539.87 100.00% No
applicable applicable applicable
Project
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
Topband Nantong
Partially
Industrial Park Phase Not Not
Yes 61,000 9,577.86 54,227.17 88.90% put into No
- I Stage - 1 Project applicable applicable
operation
(Lithium Battery)
Replenish the
Not Not Not
Company's working No 30,000 46,386.42 8,241.59 46,386.42 100.00% No
applicable applicable applicable
capital
Subtotal of committed
-- 160,228.36 160,228.36 18,319.84 153,455.52 -- -- -1,307.13 -- --
investment projects
Investment direction of over raised capitals
None
Total -- 160,228.36 160,228.36 18,319.84 153,455.52 -- -- -1,307.13 -- --
Explanation of the
situation and reasons
of failing to reach the
planned progress or
expected income (by Topband East China Operation Center: The project has been accepted and put into production gradually. At present, the
specific project) production capacity is on the way up, and due to the adjustment of production capacity distribution, some production capacities
(including the reason have been moved to the overseas bases in Vietnam and Mexico.
for selecting "NA" for
"whether the expected
income has been
achieved")
Explanation of major
changes in project No
feasibility
Amount, use and
progress of over Not applicable
raised capitals
Applicable
Changes occurred in previous years
1. On January 8, 2022, the Proposal on Changing the Implementation Method, Implementation Subject and Implementation
Change of Location of Some Raised Funds Investment Projects was deliberated and passed in the 18th meeting of the 7th Board of Directors
implementation of the Company, approving the Company to change the implementation subject, implementation location and implementation
location of investment method of the lithium-ion battery business in the planned raised funds investment project. Specifically, the implementation place
projects with raised was changed from Huizhou, Guangdong Province to Nantong, Jiangsu Province.
capitals 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 Implementation Mode and Location Again in Some Capital-raising Projects, and agreed that the
implementation mode and location of "Topband Nantong Industrial 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".
Adjustment of Applicable
implementation mode Changes occurred in previous years
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
of investment 1. On January 8, 2022, the Proposal on Changing the Implementation Method, Implementation Subject and Implementation
projects with raised Location of Some Raised Funds Investment Projects was deliberated and passed in the 18th meeting of the 7th Board of Directors
capitals of the Company, approving the Company to change the implementation subject and implementation method of the lithium-ion
battery business in the planned raised funds investment project. Specifically, the implementation mode was changed from the
land acquisition for building construction to the direct purchasing of building with infrastructure constructed.
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 Implementation Mode and Location Again in Some Capital-raising Projects, and agreed that the
implementation mode and location of "Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium Battery)", where
the mode was changed from "the direct purchasing of plant with infrastructure constructed" to "the land acquisition for plant
construction".
3. On September 7, 2023, the Proposal on Changing the Purpose of Some Raised Funds to Permanent Supplementary Working
Capital was deliberated and passed in the 37th meeting of the 7th Board of Directors and the 30th meeting of the 7th Board of
Supervisors of the Company, approving the Company to change the purpose of the balance of the raised funds from the non-
publicly offered shares for the Topband Huizhou No. 2 Industrial Park Project (Motor Project) in 2021 to permanent
supplementary working capital, and the balance amount of RMB 81.4483 million (excluding interest incomes) shall permanently
supplement the working capital for daily operation activities of the Company.
4. According to the Proposal on Closing and Permanent Supplementation of Working Capital with the Balance of the Raised
Funds of the Topband East China Operation Center Project deliberated and passed in the 9th meeting of the 8th Board of Director,
the 6th meeting of the 8th Board of Supervisors and the 2023 Annual General Meeting of Shareholders, the purpose of the
balance of the raised funds for the "Topband East China Operation Center Project" through public offering of convertible bonds
in 2019 shall be changed to permanent supplementary working capital, and after settlement of the fund raising projects, the
balance amount RMB 90.7948 million (including interest incomes and financing incomes, subject to the balance of interests
settled by the bank on the date of transfer out) of the fund raising projects after settlement shall permanently supplement the
working capital for daily operation activities of the Company.
All the above changes have been deliberated and passed in 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 Meeting of the 5th Board of Directors of the
Company deliberated and passed the Proposal on Using Raised Capitals to Replace Self-raised Capitals Invested in Advance. As
Upfront investment
of August 1, 2019, the Company has completed the displacement of the self-raised funds input earlier.
and replacement of
investment projects 2. The Company invested RMB 45.3987 million in Topband Huizhou No. 2 Industrial Park Project with self-raised funds in
with raised capitals advance. Baker Tilly China Certified Public Accountants (Special General Partnership) conducted a special audit on the matter
above, and issued the Authentication Report of Pre-investment of Shenzhen Topband Co., Ltd. in 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. As of
June 10, 2021, the Company has completed the displacement of the self-raised funds input earlier.
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear consent on
the matter.
Applicable
Temporary On December 1, 2023, the Proposal on Using Some Idle Raised Funds to Temporarily Supplement Working Capital was
replenishment of deliberated and passed in the 30th meeting of the 7th Board of Directors, approving the Company to use no more than RMB 220
working capital with million idle raised funds to temporarily supplement the working capital for a period no more than 12 months. As of June 30,
idle capitals raised 2024, RMB 63 million has been used to temporarily supplement the working capital.
Both the Board of Supervisors of the Company and the sponsors have expressed clear agreement on the matter.
Applicable
1. The 2019 Convertible Bonds Public Offering Fund Raising Project has been accepted, and the balance amount of the raised
funds is RMB 82.416 million.
2. Reason for the balance of the raised funds: During the implementation of the relevant fund raising investment project, the
Amount and reasons Company strictly followed the relevant regulations on the use of the raised funds, and on the premise of ensuring the project
of the balance of quality and reasonably controlling risks, prudently used the raised funds and strengthened the control, supervision and
raised capitals in management of the costs in all aspects to reasonably reduce the project costs. In addition, due to the limitation period of fund
project payments and other reasons, the Company contributed part of its own funds in the construction of the fund raising investment
implementation project. Therefore, there is a balance for the raised funds.
3. The Proposal on Closing and Permanent Supplementation of Working Capital with the Balance of the Raised Funds of the
Topband East China Operation Center Project was deliberated and passed in the 9th meeting of the 8th Board of Directors on
March 25, 2024 and the 2023 Annual General Meeting of Shareholders on April 17, 2024, approving the Company to settle the
fund raising investment project "Topband East China Operation Center Project" and to permanently supplement the working
capital of the Company with the balance of the raised funds.
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
1. On December 1, 2023, the Proposal on Using Some Idle Raised Funds to Temporarily Supplement Working Capital was
deliberated and passed in the 4th (Extraordinary) Meeting of the 8th Board of Directors, approving the Company to use no
Purpose and more than RMB 220 million idle raised funds to temporarily supplement the working capital for a period no more than 12
whereabouts of months. As of June 30, 2024, RMB 63 million has been used to temporarily supplement the working capital.
unused raised capitals
Both the Board of Supervisors of the Company and the sponsors have expressed clear agreement on the matter.2. Other unused
raised funds shall be deposited in the special raised fund account of the Company.
Problems or other
situations in the usage
None
and disclosure of
raised capitals
(3) Change of projects with raised capitals
Applicable □ Not applicable
Unit: RMB ten thousand
Actual
Total amount Actual Whether Whether the
cumulative Investment Benefits
Corresponding of raised input the feasibility of
input progress as The date when achieved
Project after original funds to be amount expected the project
amount as of end of the project is during the
change committed input by the during the benefits after change
of end of the period ready for use reporting
project project after reporting are is subject to a
the period (3)=(2)/(1) period
change (1) period achieved major change
(2)
Topband
Topband
Huizhou No. 2
Nantong
Industrial Park
Industrial Park Partially put Not Not
Project 61,000 9,577.86 54,227.17 88.90% No
Phase - I Stage - 1 into operation applicable applicable
(Lithium-ion
Project (Lithium
Battery
Battery)
Project)
Topband
Replenish the Huizhou No. 2
Not Not
Company's Industrial Park 38,144.83 38,144.83 100.00% Not applicable No
applicable applicable
working capital Project (Motor
Project)
Topband East
Replenish the
China Not Not
Company's 8,241.6 8,241.6 8,241.6 100.00% Not applicable No
Operation applicable applicable
working capital
Center
Not
Total -- 107,386.43 17,819.46 100,613.6 -- -- -- --
applicable
1. In January 2022, due to the fast development of the lithium-ion battery business of the Company
in recent years and the strong demands of the downstream market, the Company formerly planned
to procure lands and build a plant building to promote the lithium-ion battery project, with a
construction period of 2 years, while the Nantong Lithium-ion Battery Project of the Company
purchased an existing plant building with infrastructure construction completed, which can greatly
shorten the construction period of the project. In order to promote the expansion of the lithium-ion
battery business as soon as possible to fully seize the market opportunities of the lithium-ion battery
industry and new energy industry, improve the market competitiveness and business performance
Reason for change, decision-making procedure
of the Company and use the raise funds more efficiently, after comprehensive evaluation, the
and information disclosure (by specific projects)
Company planned to change the implementation subject, implementation location and
implementation method of the original fund raising investment project for the lithium-ion battery
business.
The Proposal on Changing the Implementation Method, Implementation Subject and
Implementation Location of Some Raised Funds Investment Projects was deliberated and passed in
the 18th (Extraordinary) Meeting of the 7th Board of Directors of the Company, the 15th
(Extraordinary) Meeting of the 7th Board of Supervisors and the 1st Extraordinary General Meeting
of Shareholders in 2022, approving the Company to change the implementation subject,
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
implementation method and implementation location of the lithium-ion battery business in the non-
public offering fund raising investment project in 2021.
2. In August 2022, because the Administrative Committee of Nantong Economic & Technological
Development Area changed the overall planning for the implementation location of the "Topband
Nantong Industrial Park Phase - I Stage - 1 Project", and in consideration of the utilization efficiency
of the raised funds, the progress of the fund raising investment project and business development
requirements of the Company, the Company decided to give up purchasing the use right of the
relevant asset after consulting with the Administrative Committee, change the implementation
method and implementation location of the fund raising investment project, and procure the land
use right of approximately 250 mu in Nantong Economic & Technological Development Area with
raised funds and its own funds for its construction of the "Topband Nantong Industrial Park Phase
- I Stage - 1 Project (Lithium Battery)".
The Proposal on Re-changing the Implementation Method, Implementation Subject and
Implementation Location of Some Raised Funds Investment Projects was deliberated and passed in
the 27th (Extraordinary) Meeting of the 7th Board of Directors of the Company, the 22nd
(Extraordinary) Meeting of the 7th Board of Supervisors and the 2nd Extraordinary General
Meeting of Shareholders in 2022, approving the Company to change the implementation method
and implementation location of the lithium-ion battery business in the non-public offering fund
raising investment project in 2021.
3. In September 2023, based on the overall planning and construction period of the Topband
Huizhou No. 2 Industrial Park and the market demand of the motor project, the implementation of
the motor project was continued in the "Topband Huizhou No. 2 Industrial Park". The initial
estimated capital investment of the project can hardly cover the overall project requirement of the
Topband Huizhou No. 2 Industrial Park, or to meet the requirements of the construction period of
the motor project. At the same time, extending the construction period will make it more difficult
to meet the future market demand of the motor project. In order to cope with the complex and
changing market environment, the Company had supplemented its own funds to its mature
industrial parks in Shenzhen and Vietnam to realize an annual production capacity of 3.5 million
sets of high-efficiency motors, so as to quickly seize market opportunities. Later on, the Company
will continue to monitor the market environment, dynamically adjust the deployment, and continue
to input its own funds into project construction, to ensure the market competitiveness of the
Company in the motor sector. Therefore, the Company changed the purpose of the funds raised for
the "Topband Huizhou No. 2 Industrial Park (Motor Project)", and used the raised funds and
corresponding interest incomes to permanently supplement the working capital.
On September 7, 2023, the Proposal on Changing the Purpose of Some Raised Funds to Permanent
Supplementary Working Capital was deliberated and passed in 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 of the Company.
4. In April 2024, in order to improve the utilization efficiency of the raised funds, save finance
expenses and improve the operation performance of the Company, the Company carried out the
settlement of the "Topband East China Operation Center Project" for fund raising via public
offering of convertible bonds in 2019, and changed the purpose of the balance of the raised funds
to permanent supplementary working capital.
The Proposal on Closing and Permanent Supplementation of Working Capital with the Balance of
the Raised Funds of the Topband East China Operation Center Project was deliberated and passed
in the 9th meeting of the 8th Board of Directors on March 25, 2024, the 6th meeting of the 8th
Board of Directors and the 2023 Annual General Meeting of Shareholders on April 17, 2024.
5. The Company has disclosed the above contents in strict accordance with the information
disclosure requirements.
Failure to fulfill the planned schedule or estimated
Not applicable
revenue, and its cause (by projects)
Major change to the feasibility of the project after
Not applicable
the change
VII. Sale of major assets and equity
1. Sale of major assets
□ Applicable Not applicable
37
Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□ Applicable Not applicable
VIII. 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 Compan Main Registered Operating Operating
Total assets Net assets Net profit
name y type business capital income profit
R&D,
Huizhou production,
Topband sales,
Subsidia
Electrical import and 300 million 4,464,206,640.14 2,139,419,993.88 3,479,150,735.40 211,356,827.04 184,900,359.21
ry
Technology export of
Co., Ltd. electronic
components
R&D,
TOPBAND
production,
SMART Sub- sales,
DONG NAI USD 33.5
subsidia import and million
889,524,666.33 606,939,339.88 658,556,060.10 180,109,069.09 163,820,976.26
(VIETNAM)
ries export of
COMPANY
LIMITED electronic
components
Situation of acquisition and disposal of subsidiaries during the reporting period
□ Applicable Not applicable
Explanation of major shareholding companies
None
IX. Situation of structured entity controlled by the Company
□ Applicable Not applicable
X. Risks faced by the Company and countermeasures
1. External risks such as the macro environment
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
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 export revenue of the Company accounted for nearly 60% of the total revenue. In order to cope with the
fluctuation risk of China Yuan, the Company will mitigate and hedge foreign exchange risks through hedging against
China Yuan, international procurement, and repricing of new products.
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.
XI. Implementation of "Double Improvement of Return on Quality" Action Plan
Whether the Company disclosed the "Double Improvement of Return on Quality" Action Plan.
□ Yes No
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
Section IV Corporate Governance
I. Information on the annual and extraordinary general meetings of shareholders held during
the reporting period
1. Information on the General Meeting of Shareholders during the reporting period
Investor
Meeting Meeting Date of
Meeting session participation Meeting resolution
type date disclosure
ratio
1. Deliberated and passed the Proposal on Annual Report 2023
and Summary
2. Deliberated and passed the Proposal on Final Financial Report
2023
3. Deliberated and passed the Proposal on Profit Distribution
Plan 2023
4. Deliberated and passed the Proposal on Work Report of the
Board of Directors 2023
Annual
5. Deliberated and passed the Proposal on Work Report of the
2023 Annual General
Board of Supervisors 2023
General Meeting
20.48% 2024/4/17 2024/4/18 6. Deliberated and passed the Proposal on Remuneration of the
Meeting of of
Shareholders Sharehold Company Directors 2023
ers 7. Deliberated and passed the Proposal on Remuneration of the
Company Supervisors 2023
8. Deliberated and passed the Proposal on Application for
Comprehensive Credit Line from Banks by the Company and Its
Subsidiaries in 2024
9. Deliberated and passed the Proposal on Closing and
Permanent Supplementation of Working Capital with the
Balance of the Raised Funds of the Topband East China
Operation Center Project
2. The preferred shareholders with restored voting rights request to convene an Extraordinary General
Meeting of Shareholders
□ Applicable Not applicable
II. Changes in directors, supervisors and senior executives
□ Applicable Not applicable
The directors, supervisors and senior management of the Company did not change during the reporting period, as
detailed in the Annual Report 2023.
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
III. Profit distribution and conversion of capital accumulation fund to share capital during
the reporting period
□ Applicable Not applicable
The Company plans not to pay cash dividend, to issue bonus shares, or to increase the share capital by capital reserve
for the first half.
IV. 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 restricted stock incentive plan in 2021:
(1) On September 20, 2021, the 13th (Extraordinary) Meeting of the 7th Board of Directors deliberated and
passed the Proposal on the Company's Restricted Stock Incentive Plan in 2021, 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 Restricted Stock
Incentive Plan in 2021 (Draft) and Its Abstract, the Proposal on the Appraisal Management Measures for the
Implementation of the Restricted Stock Incentive Plan in 2021, and the Proposal on Requesting the General Meeting
of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's Restricted Stock
Incentive Plan in 2021 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, and lawyers issued legal
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
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 Restricted Stock Incentive Plan in 2021 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 Restricted Stock Incentive Plan in 2021 (Draft) and Its
Abstract, the Proposal on the Appraisal Management Measures for the Implementation of the Restricted Stock
Incentive Plan in 2021, and the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board
of Directors to Handle Matters Related to the Company's Restricted Stock Incentive Plan in 2021 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 Restricted Stock Incentive Plan in 2021 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.
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
(6) On December 7, 2021, the Company held the 17th (Extraordinary) Meeting of the 7th Board of 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 Restricted Stock Incentive Plan in 2021 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 Restricted Stock Incentive Plan in 2021, the Board of Directors of the Company adjusted the
objects and the number of shares granted under the Restricted Stock Incentive Plan in 2021 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 Restricted Stock Incentive Plan in 2021 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, as reviewed and verified by Shenzhen Stock Exchange and Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited (CSDC), the Company completed the granting of
187,054 million restricted shares (new shares) and the granting and registration of 14,838,920 restricted shares
(repurchased shares) involved in the 2021 Restricted Share Incentive Plan. The above shares were publicly 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 restricted stock incentive plan
in 2021, 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 Restricted Stock Incentive
Plan in 2021. The 2021 annual equity distribution plan was implemented, and the repurchase price was adjusted
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Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
from RMB 7.23/share to RMB 7.18/share accordingly.
(10) On August 18, 2022, the 27th (Extraordinary) Meeting of the 7th Board of Directors and the 22nd
(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 restricted stock incentive plan in 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 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 Restricted Stock Incentive Plan in 2021, and agreed to adjust
the corporate-level performance evaluation indicators of restricted stock incentive plan in 2021. 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 restricted stock incentive plan in 2021, 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 restricted stock incentive plan in 2021 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"
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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.
(14) On April 12, 2023, part of the release conditions of the first restricted share trade period stipulated in the
2021 Restricted Share Incentive Plan of the Company was fulfilled, and the Company held the 32nd meeting of the
7th Board of Directors on March 29, 2023, in which, the Proposal on Fulfillment of Restricted Share Release
Conditions after the First Restricted Share Trade Period in the 2021 Restricted Share Incentive Plan was deliberated
and passed. Upon fulfillment of the release conditions of the first restricted share trade period set in the 2021
Incentive Plan of the Company, 9,351,936 restricted shares were released, accounting for 0.7366% of the total equity
of the Company, and covering 1,109 persons under the Incentive Plan. There is no difference between relevant
contents of the 2021 Incentive Plan implemented and the Incentive Plan disclosed.
(15) On April 25, 2023, the Proposal on Adjusting the Repurchase Price in the 2021 Restricted Share Option
Incentive Plan was deliberated and passed in the 33rd meeting of the 7th Board of Directors and the 28th meeting
of the 7th Board of Supervisors. 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 Proposal on the Repurchase and Deregistration of Some Restricted Shares in
the 2021 Restricted Share Incentive Plan was deliberated and passed in the 37th meeting of the 7th Board of
Directors and the 30th meeting of the 7th Board of Supervisors. As 65 incentive objects covered by the 2021
Restricted Share Incentive Plan, including Wang Lin, Sun Liangquan, etc., had quit for personal reasons and left the
Company, they no longer meet the incentive object conditions given in the Incentive Plan, and it is approved to
repurchase and deregister the 1,062,600 restricted shares granted to those 65 incentive objects but not yet released.
The above matter has been deliberated and passed in the 2nd Extraordinary General Meeting of Shareholders in
2023.
(17) On November 16, 2023, as reviewed and verified by Shenzhen Branch of CSDC, the repurchase and
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deregistration of the 1,933,260 restricted shares granted to 104 former employees who had quit, including Li Chaoyi,
Wang Caizhi, Ding Bo, etc., and to 4 employees whose restricted shares were not released due to their performance
appraisal in the first period, including Tang Yingjie, Shi Wenhui (quit), etc. were completed. The number of incentive
objects covered by the 2021 Restricted Share Incentive Plan was reduced from 1,148 to 1,044, and the total equity
of the Company was reduced from 1,269,535,372 shares to 1,267,602,112 shares.
(18) On December 1, 2023, the Proposal on Terminating the Implementation of the 2021 Restricted Share
Incentive Plan and on the Repurchase and Deregistration of Restricted Shares was deliberated and passed in the 4th
(Extraordinary) Meeting of the 8th Board of Directors and the 3rd (Extraordinary) Meeting of the 8th Board of
Supervisors, approving to repurchase and deregister 270,900 restricted shares that had been granted to 20 incentive
objects who had quit for personal reasons, including Shen Haibin, Wang Sifu, etc., but not yet exercised, at the price
of RMB 7.12/share; approving to repurchase and deregister 20,496,224 restricted shares that had been granted to
1,024 in-service incentive objects but not yet released for trade, at the price of RMB 7.35/share (to be rounded off,
and the amount to be paid shall be subject to the actual amount calculated). The above matters had been deliberated
and passed on the 3rd Extraordinary General Meeting of Shareholders in 2023.
(19) On April 24, 2024, according to relevant provisions of the Measures for the Administration of Equity
Incentive Plans of Listed Companies and the Incentive Plan (Revised Draft), all the restricted shares that had been
granted but not yet released for trade, 20,767,124 shares in total, accounting for 1.64% of the total equity
(1,267,602,112 shares) of the Company, shall be repurchased and deregistered. The Company totally paid RMB
152,477,057.64 for repurchasing the shares from the incentive objects who had quit. As reviewed and verified by
Shenzhen Branch of CSDC, the above repurchase and deregistration matters were completed on April 24, 2024.
After the repurchase and deregistration, the total equity of the Company was reduced from 1,267,602,112 shares to
1,246,834,988 shares.
For details about the 2021 Restricted Share Incentive Plan, refer to the disclosure announcements of the
Company on the Securities Times and 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, December 2, 2023 and April 26, 2024.
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2. Implementation of employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentives
□ Applicable 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
Rectification
Name of the Company Reason for Description Impacts on production and
Punishment measures of the
or its subsidiaries punishment of violation operation of the Company
Company
Not Not Not
Not applicable Not applicable Not applicable
applicable applicable 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
Not applicable.
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Section VI Important Matters
I. Completed commitments during 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 Commitment Commitment Commitment Commitme
Commitment content Performance
commitments Party type time nt period
Mr. Wu Yongqiang, the actual
controller of the Company, has
promised that during the
period of being the controlling
shareholder and/or actual
Commitments made
Commitments controller of the Company, he Fulfill the
during the initial Wu Long
to horizontal would not directly or indirectly 2007/6/12 commitment
public offering or Yongqiang standing
competition engage in any business which strictly
refinancing
was the same, similar or
substantially competitive with
the main business of the
Company at present and in the
future.
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
Commitments made All directors duty to the Company. I strictly
accepted the supervision and Fulfill the
during the initial and senior Other
management of the Company 2020/4/29 On-going commitment
public offering or executives of commitments
to avoid extravagance or strictly
refinancing the Company
excessive consumption.
3. I would strictly abide by the
relevant laws and regulations,
the regulations and rules of the
China Securities Regulatory
Commission, the stock
exchange and other regulatory
institutions as well as the
requirements of the
Company's rules and
regulations on the code of
conduct of directors and senior
executives. Besides, I would
not use the Company's assets
to engage in investment and
consumption activities
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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
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
China Securities Regulatory
Commission. 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
Commitments made position of the controlling
shareholder/actual controller Fulfill the
during the initial Wu Other
to interfere with the operation 2020/4/29 On-going commitment
public offering or Yongqiang commitments
and management activities of strictly
refinancing
the Company beyond my
power and would not infringe
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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 the implementation
of the Company's
compensation return
measures.
5. I would support the relevant
proposals related to the
implementation of the
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
China Securities Regulatory
Commission. 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.
Whether the Yes
commitment was
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fulfilled on schedule
If the commitment
was not fulfilled
within the time limit,
the specific reasons
Not applicable
for the failure and the
next work plan shall
be explained in
detail.
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 during 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. Appointment and dismissal of accounting firms
Whether the semi-annual financial reports have been audited
□ Yes No
The semi-annual reports of the Company have not been audited.
V. Explanation of the "non-standard audit report" of the Accounting Firm during the reporting
period by the Board of Directors and the Board of Supervisors
□ Applicable Not applicable
VI. Explanation of the Board of Directors on the "non-standard audit report" of the previous
year
□ Applicable Not applicable
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VII. Matters related to bankruptcy reorganization
□ Applicable Not applicable
There were no matter related to bankruptcy reorganization during the reporting period.
VIII. Lawsuit
Major litigation and arbitration matters
□ Applicable Not applicable
The Company had no major litigation and arbitration matters during the reporting period.
Other lawsuits
□ Applicable Not applicable
IX. Punishment and rectification
□ Applicable Not applicable
The Company was not subject to any penalty or rectification during the reporting period.
X. Integrity condition of the Company, its controlling shareholders and actual controllers
□ Applicable Not applicable
XI. 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
On January 3, 2024, the Proposal on the Conclusion of a Procurement Framework Agreement with Shenzhen
Jizhiguang Electronics Co., Ltd. was deliberated and passed in the 5th meeting of the 8th Board of Directors of the
Company; as of the end of the reporting period, the amount or the expected amount of the contracts concluded for
the routine related party transactions of the Company was below the amount deliberated and passed.
Relevant inquires on websites where temporary reports on major related party transactions were disclosed
Disclosure date of Name of website with temporary notice
Title of temporary notice
temporary notice disclosed
Notice on Expected Routine Related Party
January 5, 2024 CNINFO (http://www.cninfo.com.cn)
Transactions in 2024
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XII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable Not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ Applicable Not applicable
The Company had no contracting during the reporting period.
(3) Lease
Applicable □ Not applicable
Disclosure of lease
Refer to VII. 82 in Section X.
Item with profits and losses reaching 10% of the total profit of the Company during the reporting period
□ Applicable Not applicable
The Company had no lease item with profits and losses reaching 10% of the total profit of the Company during the
reporting period.
2. Material guarantee
Applicable □ Not applicable
Unit: RMB ten thousand
External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries)
Whether
Date of
the
disclosure of Guarant Whether
Name of Actual Counter guarantee
the relevant ee Actual date of Guarantee Collateral Guarantee it was
guarantee guarantee guarantee objects
announcement amount occurrence type (if any) period complet
object amount (if any) were
of guarantee limit ed
related
amount limit
parties
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Not Not
Not Not Not Not Not Not Not
Not applicable applica Not applicable applicab
applicable applicable applicable applicable applicable applicable applicable
ble le
Guarantee of the Company to its subsidiaries
Whether
Date of
the
disclosure of Whethe
Name of Guarantee Actual Counter guarantee
the relevant Actual date of Guarantee Collateral Guarantee r it was
guarantee amount guarantee guarantee objects
announcement occurrence type (if any) period complet
object limit amount (if any) were
of guarantee ed
related
amount limit
parties
Not
Not Not Not Not Not Not Not Not
Not applicable Not applicable applica
applicable applicable applicable applicable applicable applicable applicable applicable
ble
Guarantee of the subsidiary to its subsidiaries
Whether
Date of
the
disclosure of Whethe
Name of Guarantee Actual Counter guarantee
the relevant Actual date of Guarantee Collateral Guarantee r it was
guarantee amount guarantee guarantee objects
announcement occurrence type (if any) period complet
object limit amount (if any) were
of guarantee ed
related
amount limit
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2023/1/16 3,000 liability date of No No
Automation guaranty debts of
guaranteed
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2023/4/24 1,200 liability date of No No
Automation guaranty debts of
guaranteed
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 20,000 2023/6/29 2,000 liability date of No No
Automation guaranty debts of
guaranteed
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2023/7/31 1,200 liability date of No No
Automation guaranty debts of
guaranteed
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2023/8/29 1,779.74 liability date of No No
Automation guaranty debts of
guaranteed
parties
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3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2024/1/8 1,500 liability date of No No
Automation guaranty debts of
guaranteed
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2024/1/31 1,685.98 liability date of No No
Automation guaranty debts of
guaranteed
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2024/3/28 1,500 liability date of No No
Automation guaranty debts of
guaranteed
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2024/5/8 1,250.82 liability date of No No
Automation guaranty debts of
guaranteed
parties
3 years
from
Huizhou Joint maturity
YAKO 2023/1/11 2024/5/28 450.21 liability date of No No
Automation guaranty debts of
guaranteed
parties
Total actual amount of
Total amount of guarantee for
guarantee for
subsidiaries approved during 6,387.01
subsidiaries during the
the reporting period (C1)
reporting period (C2)
Total amount of approved Total actual balance of
guarantee for subsidiaries at guarantee for
20,000 15,566.75
the end of the reporting period subsidiaries at the end of
(C3) the reporting period (C4)
Total amount of the corporate guarantee (i.e. the sum of the first three items)
Total incurred amount of
Total amount of guarantees actual guarantees
approved during the reporting provided during the 6,387.01
period (A1+B1+C1) reporting period
(A2+B2+C2)
Total actual balance of
Total amount of guarantee
guarantee at the end of
approved at the end of the 20,000 15,566.75
the reporting period
reporting period (A3+B3+C3)
(A4+B4+C4)
The proportion of the total actual amount of guarantee
2.43%
(A4+B4+C4) in the Company's net assets
Explanation of details of complex guarantee
None.
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3. Finance management agent
Applicable □ Not applicable
Unit: RMB ten thousand
Capital source of Accrued impairment amount of
Specific Amount of entrusted Unexpired Overdue amount
entrusted overdue and unrecovered wealth
types financial management balance not recovered
financing management
Bank
financial Self-own capitals 93,604.76 35,711.89 0 0
products
Total 93,604.76 35,711.89 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
4. Others major contracts
Applicable □ Not applicable
Wheth
Name of
Transactio er a Relate Implementation
company
Name of Contract Conclusion Pricing n price related d party status as of the Date of Reference for
conclude
counterparty object date principle (RMB party transac end of the disclosure disclosure
d the
10,000) transac tion reporting period
contract
tion
LFP
China battery
Tenderin Not CNINFO
Tower products Implementation
Topband 2022/8/26 g and 52,421.09 No applica 2022/7/28 (http://www.cninfo
Corporation for completed
bidding ble .com.cn)
Limited backup
power
LFP
China battery
Tenderin Not CNINFO
Tower products
Topband 2024/2/21 g and 34,004.84 No applica In progress 2024/2/21 (http://www.cninfo
Corporation for
bidding ble .com.cn)
Limited backup
power
XIII. Explanation of other major matters
Applicable □ Not applicable
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1. Share repurchase
On January 23, 2024, the Proposal on Topband Shares Repurchase Plan was deliberated and passed in the 6th
(Extraordinary) Meeting of the 8th Board of Directors of the Company, stating that the Company plans to repurchase
its shares at a price no more than RMB 13.00/share (inclusive) through centralized bidding with its own fund no
less than RMB 30 million and no more than RMB 50 million in total, for the employee shareholding program or
optional incentive, and the term for such share repurchase is 12 months from the date on which the Share Repurchase
Plan was deliberated and passed in the 6th (Extraordinary) Meeting of the 8th Board of Directors of the Company.
On February 5, 2024, the Proposal on Changing the Total Repurchase Amount in the Topband Shares Repurchase
Plan was deliberated and passed in the 7th (Extraordinary) Meeting of the 8th Board of Directors of the Company,
to change the total amount for repurchasing shares given in the Proposal on Topband Shares Repurchase Plan
deliberated and passed in the 6th (Extraordinary) Meeting of the 8th Board of Directors of the Company from "no
less than RMB 30 million and no more than RMB 50 million" to "no less than RMB 80 million and no more than
RMB 150 million", while other clauses concerning the repurchase method, term of implementation, repurchase
price, etc. in the Shares Repurchase Plan remain unchanged.
As of June 30, 2024, the Company has repurchased 10,342,300 shares through centralized bidding via the
special stock account for the repurchase, accounting for 0.83% of the total equity of the Company, for which, a
cumulative total of RMB 82,347,338.00 (excluding transaction fees) was paid, with the highest transaction price at
RMB 9.15/share and the lowest transaction price at RMB 6.34/share.
For specific details, refer to the relevant disclosure announcements of the Company on the Securities Times
and http://www.cninfo.com.cn on January 24, 2024, January 29, 2024, January 30, 2024, February 2, 2024, February
6, 2024, March 1, 2024, April 2, 2024, May 7, 2024, June 4, 2024 and July 2, 2024.
2. Termination of carveout of a subsidiary for listing on ChiNext of Shenzhen Stock Exchange
On March 11, 2024, the Proposal on Terminating the Carveout of a Subsidiary for Listing on ChiNext of
Shenzhen Stock Exchange was deliberated and passed in the 8th meeting of the 8th Board of Directors of the
Company, approving to terminate the carveout of a subsidiary, Shenzhen YAKO Automation Technology Co., Ltd.,
for listing on ChiNext of Shenzhen Stock Exchange.
Refer to the relevant announcements of the Company on the Securities Times and http://www.cninfo.com.cn
on March 12, 2024 for details.
3. Acquisition of minority shareholder equity of holding subsidiary
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On March 11, 2024, the Proposal on Planning the Acquisition of Minority Shareholder Equity of A Holding
Subsidiary was deliberated and passed in the 8th meeting of the 8th Board of Directors of the Company, approving
the Company to acquire all the equity, 28.46% in total, held by Zhu Juzhong, Yanxun Investment and Yanyun
Investment in YAKO Automation.
On May 29, 2024, the Proposal on Acquiring Remaining Equity of YAKO Automation was deliberated and
passed in the 11th meeting of the 8th Board of Directors of the Company, and a decision was made to acquire 28.46%
equity of YAKO Automation with RMB 165.068 million in cash. On May 29, 2024, the Company entered into an
Equity Transfer Agreement with Mr. Zhu Juzhong, a shareholder of YAKO Automation, Shenzhen Yanxun
Investment Enterprise (Limited Partnership) and Shenzhen Yanyun Investment Enterprise (Limited Partnership).
After completion of the transaction, the Company will hold 100% equity of YAKO Automation.
Refer to the relevant announcements of the Company on the Securities Times and http://www.cninfo.com.cn
on March 12, 2024 and May 50, 2024 respectively for details.
XIV. Major matters of subsidiaries of the Company
□ Applicable Not applicable
Section VII Share Change and Shareholders
I. Share change
1. Share change
Unit: Share
Before this change Increase/decrease of change this time (+, -) After this change
Conver
Sto sion of
Issuan
ck accumu
Proporti ce of Proporti
Quantity: div lation Others Subtotal Quantity:
on new on
ide fund
shares
nd into
shares
I. Shares with non-
223,936,357 17.67% 0 0 0 -48,503,066 -48,503,066 175,433,291 14.07%
tradable conditions
1. Shares held by the
0.00% 0 0 0 0 0 0 0.00%
state
2. Shares held by state-
0.00% 0 0 0 0 0 0 0.00%
owned legal persons
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3. Shares held by other
223,858,657 17.66% 0 0 0 -48,425,366 -48,425,366 175,433,291 14.07%
domestic capital
Including: shares held by
0.00% 0 0 0 0 0 0 0.00%
domestic legal persons
Shares held by domestic
223,858,657 17.66% 0 0 0 -48,425,366 -48,425,366 175,433,291 14.07%
natural person
4. Shares held by foreign
77,700 0.01% 0 0 0 -77,700 -77,700 0 0.00%
investment
Including: shares held by
0.00% 0 0 0 0 0 0 0.00%
overseas legal persons
Shares held by overseas
77,700 0.01% 0 0 0 -77,700 -77,700 0 0.00%
natural persons
II. Shares with unlimited
1,043,665,755 82.33% 0 0 0 27,735,942 27,735,942 1,071,401,697 85.93%
tradable conditions
1. A shares 1,043,665,755 82.33% 0 0 0 27,735,942 27,735,942 1,071,401,697 85.93%
2. Domestic listed
0.00% 0 0 0 0 0 0 0.00%
foreign shares
3. Overseas listed foreign
0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0.00% 0 0 0 0 0 0 0.00%
III. Total number of
1,267,602,112 100.00% 0 0 0 -20,767,124 -20,767,124 1,246,834,988 100.00%
shares
Reasons for share change
Applicable □ Not applicable
The changes in the equity of the Company during the reporting period were due to the repurchase and deregistration
of 20,767,124 restricted shares.
Approval of share change
Applicable □ Not applicable
The Company implemented the following decision-making procedure for the repurchase and
deregistration of the restricted shares.
On December 1, 2023, the Proposal on Terminating the Implementation of the 2021 Restricted Share Incentive
Plan and on the Repurchase and Deregistration of Restricted Shares was deliberated and passed in the 4th
(Extraordinary) Meeting of the 8th Board of Directors and the 3rd (Extraordinary) Meeting of the 8th Board of
Supervisors, approving to repurchase and deregister 270,900 restricted shares that had been granted to 20 incentive
objects who had quit for personal reasons, including Shen Haibin, Wang Sifu, etc., but not yet exercised, at the price
of RMB 7.12/share; approving to repurchase and deregister 20,496,224 restricted shares that had been granted to
1,024 in-service incentive objects but not yet released for trade, at the price of RMB 7.35/share (to be rounded off,
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and the amount to be paid shall be subject to the actual amount calculated). The above matters had been deliberated
and passed on the 3rd Extraordinary General Meeting of Shareholders in 2023.
The Company totally paid RMB 152,477,057.64 for repurchasing the shares from the above incentive objects
who had quit. Baker Tilly China Certified Public Accountants (Special General Partnership) checked the registered
capital of the Company, and issued a Capital Verification Report (TZYZ [2024] No. 32338). As reviewed and
verified by Shenzhen Branch of CSDC, the above repurchase and deregistration matters were completed on April
24, 2024. After the repurchase and deregistration, the total equity of the Company was reduced from 1,267,602,112
shares to 1,246,834,988 shares.
Transfer of share change
□ Applicable Not applicable
Implementation progress of share repurchase
Applicable □ Not applicable
On January 23, 2024, the Proposal on Topband Shares Repurchase Plan was deliberated and passed in the 6th
(Extraordinary) Meeting of the 8th Board of Directors of the Company, stating that the Company plans to repurchase
its shares at a price no more than RMB 13.00/share (inclusive) through centralized bidding with its own fund no
less than RMB 30 million and no more than RMB 50 million in total, for the employee shareholding program or
optional incentive, and the term for such share repurchase is 12 months from the date on which the Share Repurchase
Plan was deliberated and passed in the 6th (Extraordinary) Meeting of the 8th Board of Directors of the Company.
On February 5, 2024, the Proposal on Changing the Total Repurchase Amount in the Topband Shares Repurchase
Plan was deliberated and passed in the 7th (Extraordinary) Meeting of the 8th Board of Directors of the Company,
to change the total amount for repurchasing shares given in the Proposal on Topband Shares Repurchase Plan
deliberated and passed in the 6th (Extraordinary) Meeting of the 8th Board of Directors of the Company from "no
less than RMB 30 million and no more than RMB 50 million" to "no less than RMB 80 million and no more than
RMB 150 million", while other clauses concerning the repurchase method, term of implementation, repurchase
price, etc. in the Shares Repurchase Plan remain unchanged.
As of June 30, 2024, the Company has repurchased 10,342,300 shares through centralized bidding via the
special stock account for the repurchase, accounting for 0.83% of the total equity of the Company, for which, a
cumulative total of RMB 82,347,338.00 (excluding transaction fees) was paid, with the highest transaction price at
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RMB 9.15/share and the lowest transaction price at RMB 6.34/share.
For specific details, refer to the relevant disclosure announcements of the Company on the Securities Times
and http://www.cninfo.com.cn on January 24, 2024, January 29, 2024, January 30, 2024, February 2, 2024, February
6, 2024, March 1, 2024, April 2, 2024, May 7, 2024, June 4, 2024 and July 2, 2024.
Progress in the implementation of the reduction of share repurchase through centralized bid
□ 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
Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory institution
□ Applicable Not applicable
2. Changes in non-tradable shares
Applicable □ Not applicable
Unit: Share
Increase
Desterilization number of Number of
Number of non-
number of non- non- non-tradable
Name of tradable shares at Reasons for
tradable shares tradable shares at the Date of lifting sales restriction
shareholder the beginning of non-trading
in the current shares in end of the
the period
period the current period
period
Executives
Wu Yongqiang 159,006,536 0 159,006,536 Not applicable
lock-in shares
On March 25, 2024, the
Executives restriction was lifted 6 months
Ji Shuhai 27,318,642 27,318,642 0
lock-in shares after expiration of the term of
office.
On April 24, 2024, the
Executives repurchase and deregistration of
Ma Wei 6,713,200 431,200 6,282,000
lock-in shares 2021 restricted shares of the
Company were completed.
On April 24, 2024, the
Executives repurchase and deregistration of
Peng Ganquan 3,852,674 280,000 3,572,674
lock-in shares 2021 restricted shares of the
Company were completed.
On April 24, 2024, the
Executives repurchase and deregistration of
Zheng Sibin 4,752,727 373,100 4,379,627
lock-in shares 2021 restricted shares of the
Company were completed.
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On April 24, 2024, the
Executives repurchase and deregistration of
Wen Zhaohui 2,078,345 128,100 1,950,245
lock-in shares 2021 restricted shares of the
Company were completed.
Executives
Dai Huijuan 239,709 0 239,709 Not applicable
lock-in shares
On March 13, 2024, the
Executives restriction was lifted 6 months
Xiang Wei 417,300 417,300 0
lock-in shares after expiration of the term of
office.
On April 24, 2024, the
Executives repurchase and deregistration of
Luo Muchen 37,500 35,000 2,500
lock-in shares 2021 restricted shares of the
Company were completed.
Stock-option- On April 24, 2024, the
Incentive objects
incentive repurchase and deregistration of
of restricted stock 19,519,724 19,519,724 0
restricted 2021 restricted shares of the
incentive plan
stocks Company were completed.
Total 223,936,357 48,503,066 0 175,433,291 -- --
II. Issuance and listing of securities
□ Applicable Not applicable
III. Number of shareholders and shareholding situation of the Company
Unit: Share
Total number of preferred shareholders with
Total number of ordinary shareholders at
84,412 voting rights restored at the end of the 0
the end of the reporting period
reporting period (if any) (see Note 8)
Shareholding status of common shareholders holding more than 5% shares or top 10 common shareholders (excluding shares lent via refinancing)
Number of Changes in Number of Number of Pledge, marking or
Proporti ordinary increase/de ordinary ordinary freezing
Nature of on of shares held at crease shares with shares with
Name of shareholder
shareholders sharehol the end of the during the limited unlimited Share
ding reporting reporting tradable tradable Quantity:
status
period period conditions conditions
Domestic
Wu Yongqiang natural 17.00% 212,008,715 0 159,006,536 53,002,179 Pledge 38,860,000
person
Domestic
Not
Ji Shuhai natural 2.19% 27,318,642 0 0 27,318,642 0
applicable
person
Hong Kong Securities Overseas Not
2.09% 26,047,248 2,607,847 0 26,047,248 0
Clearing Company Ltd. legal person applicable
Domestic
Not
Xie Renguo natural 1.97% 24,619,688 3,518,700 0 24,619,688 0
applicable
person
Domestic
ONLINK (HK)
non-state- Not
INDUSTRIAL 0.73% 9,120,100 743,700 0 9,120,100 0
owned legal applicable
LIMITED
person
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Overseas Not
AMCM - self-own funds 0.70% 8,708,206 -9,331,600 0 8,708,206 0
legal person applicable
Domestic
Not
Ma Wei natural 0.68% 8,519,734 -431,200 6,282,000 2,237,734 0
applicable
person
Domestic
Not
Zhong Mingyu natural 0.67% 8,374,857 354,000 0 8,374,857 0
applicable
person
Kuwait Investment Overseas Not
0.64% 7,940,693 -9,097,600 0 7,940,693 0
Authority legal person applicable
Orient Securities Co.,
Ltd. - Zhonggeng Value Not
Others 0.62% 7,760,400 7,760,400 0 7,760,400 0
Pioneer Type Securities applicable
Investment Fund
The top 10 ordinary shareholders of
strategic investors or general legal persons
Not applicable
due to placement of new shares (if any)
(see Note 3)
Explanation of the above shareholders'
Not applicable
relationship or concerted action
Explanation of the above shareholders'
entrusting/entrusted voting rights and Not applicable
waiver of voting rights
The special account of the Company for the repurchase is the securities account of Shenzhen Topband
Special explanations for the existence of
Co., Ltd. especially for share repurchase. By way of centralized bidding, the Company repurchased
special repurchase accounts among the top
21,790,100.00 shares in total through the special securities account, accounting for 1.75% of the total
10 shareholders (if any) (see Note 11)
equity issued by the Company at present.
Shareholding status of top 10 common shareholders without restriction conditions (excluding shares lent via refinancing and locked shares held by
executives)
Type of shares
Number of ordinary shares held with unlimited tradable conditions at the
Name of shareholder Type of
end of the reporting period Quantity:
shares
Wu Yongqiang 53,002,179 A shares 53,002,179
Ji Shuhai 27,318,642 A shares 27,318,642
Hong Kong Securities Clearing Company
26,047,248 A shares 26,047,248
Ltd.
Xie Renguo 24,619,688 A shares 24,619,688
ONLINK (HK) INDUSTRIAL LIMITED 9,120,100 A shares 9,120,100
AMCM - self-own funds 8,708,206 A shares 8,708,206
Zhong Mingyu 8,374,857 A shares 8,374,857
Kuwait Investment Authority 7,940,693 A shares 7,940,693
Orient Securities Co., Ltd. - Zhonggeng
Value Pioneer Type Securities Investment 7,760,400 A shares 7,760,400
Fund
New China Life Insurance Co., Ltd. -
Traditional-Common Insurance Product - 7,499,978 A shares 7,499,978
018L-CT001 Shen
Explanation of the relationship or
concerted action between the top 10
ordinary shareholders with unlimited Not applicable
tradable conditions and between the top 10
ordinary shareholders with unlimited
tradable conditions and the top 10 ordinary
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shareholders
Explanation of the participation of the top
10 ordinary shareholders in securities Mr. Xie Renguo, a shareholder, holds 16,538,603 shares through a credit securities account.
margin trading (if any) (see Note 4)
Participation in lending shares via refinancing by shareholders holding over 5% shares, top 10 shareholders and top
10 circulating share shareholders without restriction
Applicable □ Not applicable
Unit: Share
Participation in lending shares via refinancing by shareholders holding over 5% shares, top 10 shareholders and top 10 circulating
share shareholders without restriction
Shares held through Shares lent through Shares held through Shares lent through
general account and credit refinancing at beginning general account and credit refinancing at the end of
Name of account at beginning of of period and not yet account at the end of the the period and not yet
shareholder period returned period returned
(full name) Percentage Percentage Percentage Percentage
Total Total Total Total
in total in total in total in total
number number number number
equity equity equity equity
AMCM -
self-own 18,039,806 1.42% 876,200 0.07% 8,708,206 0.70% 192,700 0.02%
funds
Changes from prior period due to lending via refinancing/return of shares by top 10 shareholders and top 10
circulating share shareholders without restriction
□ Applicable Not applicable
Whether the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions have
conducted the agreed repurchase transactions during the reporting period
□ Yes No
No agreed repurchase transaction was conducted by the top 10 common shareholders and top 10 common
shareholders without restriction conditions of the Company during the reporting period.
IV. Variations in shareholding of directors, supervisors and senior executives
Applicable □ Not applicable
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Number Number
Number Number
of of
Number of of Number of
restricted restricted
shares held additional of shares Number of restricted
stocks stocks
at the shares reduced shares held stocks
Position granted at granted
Name Position beginning held in in the at the end of granted
status the at the
of the the current the period in the
beginning end of
period current period (shares) current
of the the
(shares) period (shares) period
period period
(shares) (shares)
(shares) (shares)
Wu Chairman and
Incumbent 212,008,715 0 212,008,715 0 0 0
Yongqiang general manager
Director and
Zheng
deputy general Incumbent 6,336,970 373,100 5,963,870 373,100 0 0
Sibin
manager
Director and
Ma Wei deputy general Incumbent 8,950,934 431,200 8,519,734 431,200 0 0
manager
Director and
Peng
deputy general Incumbent 5,136,900 280,000 4,856,900 280,000 0 0
Ganquan
manager
Li Independent
Incumbent 0 0 0 0 0 0
Xumeng director
Chen Independent
Incumbent 0 0 0 0 0 0
Zhengxu director
Independent
Qin Wei Incumbent 0 0 0 0 0 0
director
Deputy General
Wen Manager and
Incumbent 2,771,127 128,100 2,643,027 128,100 0 0
Zhaohui Secretary of the
Board of Directors
Luo Chief financial
Incumbent 50,000 35,000 15,000 35,000 0 0
Muchen officer
Dai
Supervisor Incumbent 319,612 0 319,612 0 0 0
Huijuan
Kang
Supervisor Incumbent 0 0 0 0 0 0
Weiquan
Chen
Supervisor Incumbent 0 0 0 0 0 0
Jinzhou
Total -- -- 235,574,258 0 1,247,400 234,326,858 1,247,400 0 0
V. Variations in controlling shareholders or real controlling parties
Change of controlling shareholders during the reporting period
□ Applicable Not applicable
The controlling shareholder of the Company did not change during the reporting period.
Change of actual controller during the reporting period
□ Applicable Not applicable
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The actual controller of the Company did not change during the reporting period.
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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
Whether the semi-annual reports have been audited
□ Yes No
The semi-annual financial reports of the Company have not been audited.
II. Financial Statements
The unit of statements in the financial notes is: RMB
1. Consolidated Balance Sheet
Prepared by: Shenzhen Topband Co., Ltd.
June 30, 2024
Unit: RMB
Items Ending balance Beginning balance
Current assets:
Monetary capital 1,601,763,206.84 1,550,450,889.82
Settlement of provisions
Lending funds
Tradable financial assets 705,951,354.57 656,704,087.16
Derivative financial assets
Notes receivable 77,997,557.44 54,198,392.53
Accounts receivable 2,674,255,585.49 2,431,773,877.56
Receivables financing 302,159,864.75 278,520,642.22
Prepayments 51,430,889.79 44,088,068.53
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 36,971,780.83 36,524,343.36
Including: interest receivable
Dividends receivable
Repurchase of financial assets for resale
Inventory 1,847,349,634.73 1,653,816,715.51
Including: data resources
Contract assets
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Assets held for sale
Non-current assets due within one year
Other current assets 219,691,147.74 213,212,927.49
Total current assets 7,517,571,022.18 6,919,289,944.18
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 37,614,643.25 37,748,179.30
Other equity instrument investment 41,192,950.00 41,192,950.00
Other non-current financial assets
Investment property 101,985,215.34 103,404,402.85
Fixed assets 2,327,328,836.76 2,102,862,886.72
Construction in progress 527,629,047.04 568,107,950.65
Productive biological assets
Oil and gas assets
Right-of-use assets 91,208,911.39 101,446,985.74
Intangible assets 652,179,956.69 607,110,895.95
Including: data resources
Development expenditure 82,908,232.13 134,191,614.89
Including: data resources
Goodwill 110,732,042.84 110,732,042.84
Long-term deferred expenses 163,611,343.06 182,804,408.10
Deferred tax assets 168,935,524.91 155,039,996.53
Other non-current assets 196,364,678.33 120,187,135.05
Total non-current assets 4,501,691,381.74 4,264,829,448.62
Total assets 12,019,262,403.92 11,184,119,392.80
Current liabilities:
Short-term loans 328,398,035.22 279,348,750.00
Loan from the Central Bank
Borrowed funds
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 1,462,800,767.21 927,833,178.70
Accounts payable 2,063,045,855.42 1,957,626,396.34
Advances received 3,527,349.78 2,808,227.54
Contractual liabilities 172,851,052.12 168,681,571.89
Financial assets sold for repurchase
Deposit absorption and interbank deposit
Acting trading securities
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Acting underwriting securities
Employee compensation payable 169,554,450.89 243,267,783.13
Taxes payable 80,071,803.27 92,374,605.57
Other account payable 268,554,442.45 151,341,029.40
Including: interest payable
Dividends payable
Service charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one 361,445,125.35 370,623,598.03
year
Other current liabilities 60,377,622.16 32,561,693.03
Total current liabilities 4,970,626,503.87 4,226,466,833.63
Non-current liabilities
Insurance contract reserve
Long-term loans 505,888,984.86 437,747,877.47
Bonds payable
Including: preferred shares
Perpetual capital securities
Lease liabilities 55,996,796.93 61,429,811.03
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income 9,351,017.56 11,146,292.42
Deferred tax liabilities 73,105,967.14 77,730,856.81
Other non-current liabilities
Total non-current liabilities 644,342,766.49 588,054,837.73
Total liabilities 5,614,969,270.36 4,814,521,671.36
Owner's equity:
Share capital 1,246,834,988.00 1,246,834,988.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserves 2,132,631,591.66 2,212,629,919.51
Minus: treasury shares 194,780,122.84 112,426,101.24
Other comprehensive income -22,005,828.47 11,932,029.41
Special reserves
Surplus reserves 219,446,936.59 219,446,936.59
General risk provision
Retained earnings 3,021,825,518.13 2,706,499,696.23
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Total owner's equity attributable to the 6,403,953,083.07 6,284,917,468.50
parent company
Minority shareholders' equity 340,050.49 84,680,252.94
Total owners' equity 6,404,293,133.56 6,369,597,721.44
Total liabilities and owners' equity 12,019,262,403.92 11,184,119,392.80
Legal representative: Wu Person in charge of accounting: Luo Head of accounting firm: Luo
Yongqiang Muchen Muchen
2. Balance Sheet of Parent Company
Unit: RMB
Items Ending balance Beginning balance
Current assets:
Monetary capital 702,625,752.19 564,655,392.19
Tradable financial assets 448,132,886.74 449,502,886.74
Derivative financial assets
Notes receivable 32,214,590.46 21,283,544.89
Accounts receivable 1,365,638,215.99 1,255,501,213.69
Receivables financing 181,507,545.76 187,096,121.14
Prepayments 12,363,512.35 9,934,227.02
Other receivables 345,934,589.72 359,906,911.54
Including: interest receivable
Dividends receivable
Inventory 439,362,321.12 144,733,773.21
Including: data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1,396,632.19 6,508,120.43
Total current assets 3,529,176,046.52 2,999,122,190.85
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 4,154,461,865.33 3,987,403,182.73
Other equity instrument investment
Other non-current financial assets
Investment property
Fixed assets 173,466,752.08 168,610,949.25
Construction in progress 12,827,126.91 12,393,132.55
Productive biological assets
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Oil and gas assets
Right-of-use assets 17,384,531.63 9,098,366.55
Intangible assets 182,746,643.36 160,674,130.76
Including: data resources
Development expenditure 60,195,344.62 83,523,254.86
Including: data resources
Goodwill
Long-term deferred expenses 14,013,822.33 15,656,340.48
Deferred tax assets 50,180,733.21 44,367,498.96
Other non-current assets 14,505,254.42 9,641,839.34
Total non-current assets 4,679,782,073.89 4,491,368,695.48
Total assets 8,208,958,120.41 7,490,490,886.33
Current liabilities:
Short-term loans 100,000,000.00 204,133,333.33
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 1,302,497,751.98 1,136,576,558.75
Accounts payable 755,994,544.76 242,320,060.42
Advances received
Contractual liabilities 79,772,492.42 95,017,210.64
Employee compensation payable 96,427,778.93 134,992,084.62
Taxes payable 26,624,958.38 17,927,120.33
Other account payable 720,111,551.36 470,481,715.23
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 307,226,425.00 307,665,202.21
Other current liabilities 20,431,071.34 11,806,507.10
Total current liabilities 3,409,086,574.17 2,620,919,792.63
Non-current liabilities
Long-term loans 31,000,000.00
Bonds payable
Including: preferred shares
Perpetual capital securities
Lease liabilities 10,389,634.06 1,591,379.57
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 3,118,693.56 3,806,112.42
Deferred tax liabilities 33,512,139.45 32,635,559.80
Other non-current liabilities
Total non-current liabilities 78,020,467.07 38,033,051.79
76
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Total liabilities 3,487,107,041.24 2,658,952,844.42
Owner's equity:
Share capital 1,246,834,988.00 1,246,834,988.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserves 2,254,729,914.19 2,254,729,914.19
Minus: treasury shares 194,780,122.84 112,426,101.24
Other comprehensive income
Special reserves
Surplus reserves 219,418,418.13 219,418,418.13
Retained earnings 1,195,647,881.69 1,222,980,822.83
Total owners' equity 4,721,851,079.17 4,831,538,041.91
Total liabilities and owners' equity 8,208,958,120.41 7,490,490,886.33
3. Consolidated Income Statement
Unit: RMB
2023 Half-year
Items First half of 2024
Statements
I. Total operating income 5,015,785,165.59 4,256,121,153.72
Including: operating income 5,015,785,165.59 4,256,121,153.72
Interest income
Premium earned
Service charge and commission income
II. Total operating cost 4,578,211,459.86 3,972,666,304.82
Including: operating cost 3,817,211,001.65 3,337,826,833.15
Interest expense
Service charge and commission payment
Surrender value
Net compensation expenditure
Net reserve amount set aside for insurance liability
Policy dividend payment
Reinsurance expenses
Taxes and surcharges 29,865,374.27 24,032,385.59
Selling expenses 180,788,131.47 143,034,445.61
Management expenses 190,587,638.62 201,474,565.60
R&D expenses 388,540,898.00 317,290,550.11
Finance expenses -28,781,584.15 -50,992,475.24
Including: interest expenses 28,863,971.32 19,596,648.04
Interest income 15,326,718.58 15,720,869.63
Plus: other income 21,414,975.09 17,194,559.29
77
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Investment income (loss indicated by "-") 2,025,727.35 -3,244,186.21
Including: income from investment in associated enterprises and joint ventures -133,536.05 -941,734.97
Derecognized gains from financial assets measured at amortized cost
Exchange gain (loss indicated by "-")
Net gain from exposure hedges (loss indicated by "-")
Gain from fair-value changes (loss indicated by "-") -6,041,282.00
Loss from credit impairment (loss indicated by "-") -7,181,453.97 -2,376,908.52
Loss from asset impairment (loss indicated by "-") -21,090,974.63 -23,666,214.06
Gain from disposal of assets (loss indicated by "-") -2,580,837.22 -1,279,902.83
III. Operating profit (loss indicated by "-") 430,161,142.35 264,040,914.57
Plus: non-operating income 1,739,303.34 4,591,331.07
Minus: non-operating expenses 5,563,887.00 4,250,758.69
IV. Total profit (total loss indicated by "-") 426,336,558.69 264,381,486.95
Minus: income tax expense 36,778,573.81 6,043,729.44
V. Net profit (net loss indicated by "-") 389,557,984.88 258,337,757.51
(I) Classification according to business continuity
1. Net profit on continuing operations (net loss indicated by "-") 389,557,984.88 258,337,757.51
2. Net profit on discontinued operations (net loss indicated by "-")
(II) Classification according to ownership
1. Net profit attribute to shareholders of parent company (net loss indicated by
388,828,515.18 258,040,692.16
"-")
2. Profit/loss attributable to minority shareholders (net loss indicated by "-") 729,469.70 297,065.35
VI. Net after-tax amount of other comprehensive income -33,937,857.88 60,692,638.82
Net after-tax amount of other comprehensive income attributable to the owner
-33,937,857.88 60,692,638.82
of the parent company
(I) Other comprehensive income that cannot be reclassified into profits and
losses
1. Re-measurement of changes in the defined benefit plans
2. Other comprehensive income not available for transferring to profits and
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 losses -33,937,857.88 60,692,638.82
1. Other comprehensive income that can be transferred into profits and 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 -33,937,857.88 60,692,638.82
7. Others
Net after-tax amount of other comprehensive income attributed to the minority
of shareholders
78
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VII. Total comprehensive income 355,620,127.00 319,030,396.33
Total consolidated income attributable to the owners of the parent company 354,890,657.30 318,733,330.98
Total consolidated income attributable to minority shareholders 729,469.70 297,065.35
VIII. Earnings per share:
(I) Basic earnings per share 0.31 0.20
(II) Diluted earnings per share 0.31 0.20
In case of business merger involving enterprises under the same control in the current period, the net profit realized
by the merged party before the merger is: RMB 0.00, and the net profit realized by the merged party in the prior
period is: RMB 0.00.
Legal representative: Wu Person in charge of accounting: Luo Head of accounting firm: Luo
Yongqiang Muchen Muchen
4. Income statement of parent company
Unit: RMB
2023 Half-year
Items First half of 2024
Statements
I. Operating income 2,408,336,475.85 2,251,996,133.85
Minus: operating cost 1,950,338,909.54 1,906,539,875.63
Taxes and surcharges 8,506,336.53 5,560,404.09
Selling expenses 116,036,258.24 90,986,205.50
Management expenses 96,839,658.18 97,211,587.17
R&D expenses 222,191,120.63 156,684,225.51
Finance expenses -24,745,298.32 -30,562,740.37
Including: interest expenses 8,930,422.33 8,774,186.09
Interest income 7,037,069.58 6,279,923.28
Plus: other income 12,305,323.68 6,469,767.96
Investment income (loss indicated by "-") 470,417.09 336,904.82
Including: income from investment in associated enterprises and joint ventures -9,317.40 -40,895.19
Recognized gain of financial assets calculated based on amortized cost at the end
of the period (loss indicated by "-")
Net gain from exposure hedges (loss indicated by "-")
Gain from fair-value changes (loss indicated by "-") -6,041,282.00
Loss from credit impairment (loss indicated by "-") -3,339,018.66 -1,870,859.80
Loss from asset impairment (loss indicated by "-") -5,513,253.27 -1,949,576.95
Gain from disposal of assets (loss indicated by "-") -83,340.41 104,514.76
II. Operating profit (loss indicated by "-") 43,009,619.48 22,626,045.11
Plus: non-operating income 191,262.62 422,626.97
Minus: non-operating expenses 1,961,918.17 788,989.26
III. Total profit (total loss indicated by "-") 41,238,963.93 22,259,682.82
Minus: income tax expense -4,930,788.21 -9,738,580.52
79
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IV. Net profit (net loss indicated by "-") 46,169,752.14 31,998,263.34
(I) Net profit on continuing operations (net loss indicated by "-") 46,169,752.14 31,998,263.34
(II) Net profit on discontinued operations (net loss indicated by "-")
V. Net after-tax amount of other comprehensive income
(I) Other comprehensive income that cannot be reclassified into profits and losses
1. Re-measurement of changes in the defined benefit plans
2. Other comprehensive income not available for transferring to profits and 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 losses
1. Other comprehensive income that can be transferred into profits and 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
VI. Total comprehensive income 46,169,752.14 31,998,263.34
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
2023 Half-year
Items First half of 2024
Statements
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 4,987,452,982.82 4,469,184,753.48
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 282,746,532.49 218,867,332.07
80
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Other cash received related to operating activities 71,969,813.90 67,492,756.77
Subtotal of cash inflow from operating activities 5,342,169,329.21 4,755,544,842.32
Cash paid for purchasing goods and accepting labor services 3,517,455,046.31 3,128,270,632.34
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 986,965,195.81 810,553,360.68
Tax payments 160,449,258.75 113,547,827.98
Other cash paid in connection with operating activities 206,985,653.67 175,330,550.14
Subtotal of cash outflow from operating activities 4,871,855,154.54 4,227,702,371.14
Net cash flow from operating activities 470,314,174.67 527,842,471.18
II. Cash flow from investing activities:
Cash received from investment recovery 320,623,714.10 41,535,369.30
Cash received as return on an investment 6,726,780.63 465,610.97
Net cash recouped from disposal of fixed assets, intangible assets, and other
706,000.00 3,048,022.16
long-term assets
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investment activities 2,235,246.36
Subtotal of cash inflow from investment activities 330,291,741.09 45,049,002.43
Cash paid for the purchase and construction of fixed assets, intangible assets and
276,431,701.74 444,995,875.67
other long-term assets
Cash paid for investment 359,752,158.18 68,710,705.69
Net increase in pledged loans
Net cash obtained from subsidiaries and other business units
Other cash paid related to investment activities 7,268,000.00
Subtotal of cash outflow from investment activities 643,451,859.92 513,706,581.36
Net cash flow from investment activities -313,160,118.83 -468,657,578.93
III. Cash flow from financing activities:
Cash received from absorbing investment
Including: cash received by subsidiaries' absorption of minority shareholders'
investment
Cash received from loan 837,696,102.40 885,000,000.00
Other cash received relating to financing activities 5,021,283.53 3,101,583.74
Subtotal of cash inflow from financing activities 842,717,385.93 888,101,583.74
Cash paid for repayments of debts 727,060,000.01 481,310,000.00
Cash paid to distribute dividends, profits or pay interest 98,468,158.57 91,887,916.38
Including: dividends and profits paid by subsidiaries to minority shareholders
Other cash paid related to financing activities 137,485,601.63 30,009,823.21
Subtotal of cash outflow from financing activities 963,013,760.21 603,207,739.59
Net cash flow from financing activities -120,296,374.28 284,893,844.15
81
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IV. Impact of exchange rate fluctuations on cash and cash equivalents 42,095,731.96 14,538,301.34
V. Net increase in cash and cash equivalents 78,953,413.52 358,617,037.74
Plus: balance of cash and cash equivalents at the beginning of the period 1,494,743,705.76 1,374,281,693.23
VI. Balance of cash and cash equivalents at the end of the period 1,573,697,119.28 1,732,898,730.97
6. Cash flow statement of the parent company
Unit: RMB
2023 Half-year
Items First half of 2024
Statements
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 2,174,049,368.22 2,377,904,756.11
Refund of tax and levies 122,565,220.28 107,900,631.47
Other cash received related to operating activities 1,370,428,415.47 912,529,650.38
Subtotal of cash inflow from operating activities 3,667,043,003.97 3,398,335,037.96
Cash paid for purchasing goods and accepting labor services 1,580,535,393.06 1,865,163,048.56
Cash paid to and for employees 422,141,949.13 362,203,603.62
Tax payments 23,631,911.02 17,241,561.23
Other cash paid in connection with operating activities 1,186,205,200.13 947,072,850.31
Subtotal of cash outflow from operating activities 3,212,514,453.34 3,191,681,063.72
Net cash flow from operating activities 454,528,550.63 206,653,974.24
II. Cash flow from investing activities:
Cash received from investment recovery 200,000,000.00
Cash received as return on an investment 1,949,141.49 377,800.00
Net cash recouped from disposal of fixed assets, intangible assets, and other
320,000.00
long-term assets
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investment activities 14,235,246.36
Subtotal of cash inflow from investment activities 216,184,387.85 697,800.00
Cash paid for the purchase and construction of fixed assets, intangible assets and
59,832,583.11 64,993,076.30
other long-term assets
Cash paid for investment 231,761,025.80 5,000,000.00
Net cash obtained from subsidiaries and other business units
Other cash paid related to investment activities 7,268,000.00
Subtotal of cash outflow from investment activities 298,861,608.91 69,993,076.30
Net cash flow from investment activities -82,677,221.06 -69,295,276.30
III. Cash flow from financing activities:
Cash received from absorbing investment
Cash received from loan 131,000,000.00 230,000,000.00
Other cash received relating to financing activities
Subtotal of cash inflow from financing activities 131,000,000.00 230,000,000.00
Cash paid for repayments of debts 200,000,000.00 10,000.00
Cash paid to distribute dividends, profits or pay interest 85,212,715.51 83,201,916.97
82
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Other cash paid related to financing activities 88,026,170.65 9,876,571.83
Subtotal of cash outflow from financing activities 373,238,886.16 93,088,488.80
Net cash flow from financing activities -242,238,886.16 136,911,511.20
IV. Impact of exchange rate fluctuations on cash and cash equivalents 22,503,553.14 1,042,806.27
V. Net increase in cash and cash equivalents 152,115,996.55 275,313,015.41
Plus: balance of cash and cash equivalents at the beginning of the period 530,273,423.70 394,701,442.83
VI. Balance of cash and cash equivalents at the end of the period 682,389,420.25 670,014,458.24
83
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7. Consolidated statement of changes in owner's equity
Amount in the current period
Unit: RMB
Items First half of 2024
Owner's equity attributable to the parent company
Other
equity
instrum
ents
General risk provision
Preferred shares
Perpetual capital securities
Others
Special reserves
Minority
Minus: Other Total owners'
Others
Surplus Retained shareholders'
Share capital Capital reserves treasury comprehensi Subtotal equity
reserves earnings equity
shares ve income
I. Ending balance of last
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
year
Plus: changes in accounting
policies
Early error correction
Others
II. Beginning 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
III. Amount of changes in
increase/decrease in the
-79,998,327.85 82,354,021.60 -33,937,857.88 315,325,821.90 119,035,614.57 -84,340,202.45 34,695,412.12
current period (decrease
indicated by "-")
84
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(I) Total comprehensive
-33,937,857.88 388,828,515.18 354,890,657.30 729,469.70 355,620,127.00
income
(II) Capital invested and
82,354,021.60 -82,354,021.60 -82,354,021.60
reduced by owners
1. Common share
0.00
contribution from owners
2. Capital contribution
from other equity 0.00
instrument holders
3. Share-based payment
0.00
recorded in owner's equity
4. Others 82,354,021.60 -82,354,021.60 -82,354,021.60
(III) Profit distribution -73,502,693.28 -73,502,693.28 -73,502,693.28
1. Appropriation of surplus
0.00
reserve
2. Accrual of general risk
0.00
reserve
3. Distribution to owner (or
-73,502,693.28 -73,502,693.28 -73,502,693.28
shareholder)
4. Others 0.00
(IV) Internal carryover of
0.00
owner's equity
1. Capital reserve
transferred to paid-in 0.00
capital (or equity)
2. Surplus reserve
transferred to paid-in 0.00
capital (or equity)
3. Recover of loss by
0.00
surplus reserve
4. Defined benefit plan
changed amount carried
0.00
forward to retained
earnings
85
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5. Other comprehensive
income carried forward to 0.00
retained earnings
6. Others 0.00
(V) Special reserves 0.00
1. Accrual in the current
0.00
period
2. Utilization in the current
0.00
period
(VI) Others -79,998,327.85 -79,998,327.85 -85,069,672.15 -165,068,000.00
IV. Ending balance of the
1,246,834,988.00 2,132,631,591.66 194,780,122.84 -22,005,828.47 219,446,936.59 3,021,825,518.13 6,403,953,083.07 340,050.49 6,404,293,133.56
current year
Amount of prior year
Unit: RMB
2023 Half-year Statements
Owner's equity attributable to the parent company
Other
equity
instrume
nts
General risk provision
Special reserves
Perpetual capital securities
Items Minority
Other Total owners'
Others
Minus: Surplus Retained shareholders'
equity
Preferred shares
Share capital Capital reserves comprehensi Subtotal equity
treasury shares reserves earnings
ve income
Others
I. Ending balance of last
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
year
Plus: changes in
accounting policies
86
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Early error correction
Others
II. Beginning balance of
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
the current year
III. Amount of changes
in increase/decrease in
the current period 32,988,020.07 -67,614,497.28 60,692,638.82 182,179,441.84 343,474,598.01 -6,235,470.30 337,239,127.71
(decrease indicated by
"-")
(I) Total comprehensive
60,692,638.82 258,040,692.16 318,733,330.98 297,065.35 319,030,396.33
income
(II) Capital invested and
33,143,382.77 -67,614,497.28 100,757,880.05 100,757,880.05
reduced by owners
1. Common share
contribution from
owners
2. Capital contribution
from other equity
instrument holders
3. Share-based payment
recorded in owner's 33,143,382.77 33,143,382.77 33,143,382.77
equity
4. Others -67,614,497.28 67,614,497.28 67,614,497.28
(III) Profit distribution -75,861,250.32 -75,861,250.32 -75,861,250.32
1. Appropriation of
surplus reserve
2. Accrual of general
risk reserve
3. Distribution to owner
-75,861,250.32 -75,861,250.32 -75,861,250.32
(or shareholder)
4. Others
(IV) Internal carryover
of owner's equity
87
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1. Capital reserve
transferred to paid-in
capital (or equity)
2. Surplus reserve
transferred to paid-in
capital (or equity)
3. Recover of loss by
surplus reserve
4. Defined benefit plan
changed amount carried
forward to retained
earnings
5. Other comprehensive
income carried forward
to retained earnings
6. Others
(V) Special reserves
1. Accrual in the current
period
2. Utilization in the
current period
(VI) Others -155,362.70 -155,362.70 -6,532,535.65 -6,687,898.35
IV. Ending balance of
1,269,535,372.00 2,299,130,218.51 216,643,357.63 52,213,016.47 214,764,194.14 2,453,709,135.66 6,072,708,579.15 87,156,741.67 6,159,865,320.82
the current year
8. Parent company's statement of changes in owner's equity
Amount in the current period
Unit: RMB
First half of 2024
Other equity instruments Other Spec
Items Minus: treasury ial Oth Total owners'
Share capital Perpet Capital reserves compr Surplus reserves Retained earnings
Preferr Othe shares ehensi reser ers equity
ual rs
ed ve ves
capital
88
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shares securiti income
es
I. Ending balance of last year 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
Plus: changes in accounting
policies
Early error correction
Others
II. Beginning balance of the
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
current year
III. Amount of changes in
increase/decrease in the
82,354,021.60 -27,332,941.14 -109,686,962.74
current period (decrease
indicated by "-")
(I) Total comprehensive
46,169,752.14 46,169,752.14
income
(II) Capital invested and
82,354,021.60 -82,354,021.60
reduced by owners
1. Common share
contribution from owners
2. Capital contribution from
other equity instrument
holders
3. Share-based payment
recorded in owner's equity
4. Others 82,354,021.60 -82,354,021.60
(III) Profit distribution -73,502,693.28 -73,502,693.28
1. Appropriation of surplus
reserve
2. Distribution to owner (or
-73,502,693.28 -73,502,693.28
shareholder)
3. Others
(IV) Internal carryover of
owner's equity
1. Capital reserve transferred
to paid-in capital (or equity)
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2. Surplus reserve transferred
to paid-in capital (or equity)
3. Recover of loss by surplus
reserve
4. Defined benefit plan
changed amount carried
forward to retained earnings
5. Other comprehensive
income carried forward to
retained earnings
6. Others
(V) Special reserves
1. Accrual in the current
period
2. Utilization in the current
period
(VI) Others
IV. Ending balance of the
1,246,834,988.00 2,254,729,914.19 194,780,122.84 219,418,418.13 1,195,647,881.69 4,721,851,079.17
current year
Amount of prior year
Unit: RMB
2023 Half-year Statements
Other equity instruments
Items Other
Perpetual Minus: treasury Special Surplus Retained Total owners'
Share capital Preferred Capital reserves comprehensive Others
capital Others shares reserves reserves earnings equity
shares income
securities
I. Ending balance of
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
last year
Plus: changes in
accounting policies
Early error correction
Others
90
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II. Beginning balance
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
of the current year
III. Amount of
changes in
increase/decrease in
30,347,889.00 -67,614,497.28 -43,862,986.98 54,099,399.30
the current period
(decrease indicated
by "-")
(I) Total
comprehensive 31,998,263.34 31,998,263.34
income
(II) Capital invested
and reduced by 30,347,889.00 -67,614,497.28 97,962,386.28
owners
1. Common share
contribution from
owners
2. Capital
contribution from
other equity
instrument holders
3. Share-based
payment recorded in 30,347,889.00 30,347,889.00
owner's equity
4. Others -67,614,497.28 67,614,497.28
(III) Profit
-75,861,250.32 -75,861,250.32
distribution
1. Appropriation of
surplus reserve
2. Distribution to
owner (or -75,861,250.32 -75,861,250.32
shareholder)
3. Others
(IV) Internal
carryover of owner's
equity
1. Capital reserve
transferred to paid-in
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capital (or equity)
2. Surplus reserve
transferred to paid-in
capital (or equity)
3. Recover of loss by
surplus reserve
4. Defined benefit
plan changed amount
carried forward to
retained earnings
5. Other
comprehensive
income carried
forward to retained
earnings
6. Others
(V) Special reserves
1. Accrual in the
current period
2. Utilization in the
current period
(VI) Others
IV. Ending balance
1,269,535,372.00 2,344,714,038.44 216,643,357.63 214,735,675.68 1,212,834,404.09 4,825,176,132.58
of the current year
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III. Basic information of the Company
Shenzhen Topband Co., Ltd. (hereinafter referred to as the Company), former name: Shenzhen Topband
Electronic Equipment Co., Ltd., was incorporated and registered at Shenzhen Municipal Administration of Industry
& Commerce on February 9, 1996, and obtained the Enterprise Legal Person Business License (Registration No.
19241377-3). On January 10, 2001, after approval, Shenzhen Topband Electronic Equipment Co., Ltd. Was renamed
to Shenzhen Topband Electronics & Technology Co., Ltd. On July 15, 2002, with the approval of the People's
Government of Shenzhen Municipality by issuing the Reply on the Approval of the Reorganization and
Establishment of Shenzhen Topband Electronics & Technology Co., Ltd. (SFG [2002] No. 24), Guangdong Province,
it was agreed to reorganize Shenzhen Topband Electronics & Technology Co., Ltd. as a whole into a company
limited by shares, with five shareholders as the promoter. On June 26, 2007, with the approval of China Securities
Regulatory Commission by issuing the Notice on Approving the IPO of Shenzhen Topband Electronics &
Technology Co., Ltd. (ZJH No. 2007135), Topband issued shares to the public and was listed on the Shenzhen Stock
Exchange (stock code: 002139). The company name was changed to Shenzhen Topband Co., Ltd. In September
2009.
The registered address of the Company is F1, Topband Industrial Park Phase II, Keji Second Road, Tangtou
Community, Shiyan Sub-district, Bao'an District, Shenzhen. The unified social credit identifier on the business
license is 91440300192413773Q. The legal representative of the Company is Wu Yongqiang. As of June 30, 2024,
the share capital was RMB 1,246,834,988.
The main business activities of the Company include: the research, development, production and sales of
intelligent control system solutions, to provide customized solutions to home appliances, power tools, new energy
and industry sectors with "four electrics and one network" (electric control, motor, battery, power and IoT platform)
as the core.
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.
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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.
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.
In addition, the financial report is prepared in accordance with the reporting and disclosure requirements of the
Compilation Rules No. 15 for Information Disclosure by Companies Offering Securities to the Public - General
Provisions on Financial Reports (Revised in 2023) issued by the China Securities Regulatory Commission.
2. Accounting period
The fiscal year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31
every year.
The reporting period is from January to June 2024.
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
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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. Determination method and selection basis of importance criteria
Applicable □ Not applicable
Items Criteria of importance
The balance of individual accounts receivables and other
Accounts receivable on individual basis for material bad debt
accounts receivables at the end of the period is more than RMB
provision
1 million
The amount of individual accounts receivable is over RMB 10
Important construction in progress
million
6. Accounting treatment for business merger involving enterprises under the same control and under
different control
1. Accounting treatment for consolidation under the same control
The Company implements business merger involving enterprises under the same control through single or
multiple transactions by steps, and the assets and liabilities obtained in business merger are accounted based on
book value of the assets and liabilities of the merged 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:
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(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 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.
Situation with equity disposal by steps through multiple transactions until the control of the subsidiary is lost:
(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"
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
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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. 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 of control and methods for preparation of consolidated financial statements
The consolidation scope of consolidated financial statements of the Company shall be determined based on
control.
Control means that the Company has power over the invested party, enjoys variable returns by participating in
related activities of the invested party, and has the ability to use its power over the invested party to influence the
amount of returns. Related activities are those that have a significant impact on the return of the invested party.
Related activities of the invested party shall be judged according to specific circumstances, and usually include the
sale and purchase of goods or services, the management of financial assets, the purchase and disposal of assets,
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research and development activities, and financing activities.
The Company determines whether it has control over the invested party on the basis of comprehensive
consideration of all relevant facts and circumstances. Once changes in relevant facts and circumstances lead to
changes in the relevant elements involved in the definition of control, the Company will re-evaluate.
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
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.
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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 translation of foreign currency financial statements
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
When the Company becomes one party of the financial instrument contract, it shall recognize a financial asset
or financial liability.
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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
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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. 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
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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 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 and 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
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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
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. For details about specific assessment of credit risks
by the Company, refer to 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
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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 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 rewords 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
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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 its risk of overdue credit loss is low and 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 bad debts shall be accrued for the expected credit loss of accounts receivables according to the
accounting policy.
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 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, and reviewed the appropriateness of the provisions for bad
debts receivables in previous years based on the Company's historical impairment losses on bad debt provision. 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. Therefore, the credit risk loss of the Company on
accounts receivables is still estimated on the basis of aging according to the original loss ratio of the previous years.
The accounting policies for measuring overdue credit loss of accounts receivable adopted by the Company are as
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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:
Estimated loss of accounts Estimated loss of other
Aging
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
Write-off Write-off
be irrecoverable
Note: When measuring the expected credit loss of account 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
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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 accounts receivable
Recognition method and accounting treatment method for expected credit loss of other receivables
Recognition methods and accounting treatment of expected credit losses of other receivables. The Company
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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:
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
For contract assets without material financing components (including cases in which financing components in
contracts not exceeding one year are not taken into account in accordance with the standards) as specified in the
Accounting Standards for Business Enterprises No. 14 - Income, the Company measures provisions for losses as
per the amount of expected credit losses throughout the whole duration by using a simplified model for the expected
credit loss. The increased or reversed amount of loss provisions generated therefrom shall be credited to the current
profits and losses as impairment losses or gains.
For contract assets with material financing components, the Company measures provisions for losses as per
the amount of expected credit losses throughout the whole duration by using a simplified model for the expected
credit loss.
17. Inventory
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
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The delivered inventories are subject to the weighted-average system.
3. Inventory system
Perpetual inventory system is the inventories.
4. Amortization 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. Determination criteria and accrual method of provision for impairment on inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and provisions
of impairment on inventories are accrued with the difference between the cost of single inventory and 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 selling 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, selling 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. Determination criteria and accounting treatment of non-current assets or disposal group classified as held
for sale
The Company classifies the group components (or non-current assets) as holding for sale if both of the
following conditions are met: (1) in accordance with the practice of selling such assets or disposal groups in similar
transactions, they can be sold immediately under current conditions; (2) the sale is highly likely to occur, a sale plan
has been agreed upon and a firm purchase commitment has been obtained (a firm purchase commitment is a legally
binding purchase agreement between the enterprise and other parties that contains the major terms concerning the
price and time of transaction, severe enough penalties for breach of contract, etc. that make it highly unlikely that
the agreement will be materially adjusted or cancellation). It is expected the sale will be completed within one year.
It has been approved by relevant authorities or regulatory authorities in accordance with relevant provisions.
The Company adjusts the estimated net residual value of assets held for sale to a net amount reflecting its fair
value less selling expenses (but shall not exceed the original carrying value of the assets held for sale), the difference
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between the original carrying value and the adjusted estimated net residual value is credited to the current profit and
loss as an asset impairment loss, and at the same time, a provision for impairment is made for the assets held for
sale. For the amount of asset impairment losses recognized for the disposal group held for sale, the carrying value
of goodwill in the disposal group shall be offset first, and then the carrying value shall be offset proportionally
according to the proportion of the carrying value of each non-current asset in the disposal group applicable to the
measurement provisions of the standard.
If the net amount of the fair value of the non-current assets held for sale less the selling expenses increases on
the subsequent balance sheet date, the amount previously written down shall be restored and reversed below the
amount of asset impairment losses recognized after the assets are classified as holding for sale, and the amount
reversed shall be credited to the current profits and losses. Impairment losses on assets recognized before they are
classified as holding for sale cannot be reversed. If the net amount of the fair value of the disposal group held for
sale less the selling expenses increases on the subsequent balance sheet date, the amount previously written down
shall be restored and reversed below the amount of asset impairment losses recognized for the non-current assets
applicable to the measurement provisions of the standard after the assets are classified as holding for sale, and the
amount reversed shall be credited to the current profits and losses. The carrying value of goodwill that has been
written off and the asset impairment losses recognized before the non-current assets are classified as holding for
sale under the measurement provisions of the standard cannot be reversed. For the subsequent reversed amount of
asset impairment losses recognized for the disposal group held for sale, the carrying value shall be increased
proportionally according to the proportion of the carrying value of each non-current asset in the disposal group
applicable to the measurement provisions of the standard, except goodwill. If an enterprise loses its control over a
subsidiary due to the sale of its investment in the subsidiary, regardless of whether the enterprise retains part of the
equity investment after the sale, it shall, when the investment in the subsidiary to be sold meets the classification
conditions for holding for sale, classify the investment in the subsidiary as a whole as holding for sale in the
individual financial statements of the parent company, and classify all assets and liabilities of the subsidiary as
holding for sale in the consolidated financial statements.
2. Determination criteria and presentation of discontinued operations
Discontinued operations refer to a separable component of the enterprise that meets one of the following
conditions and has been disposed of or classified as holding for sale: (1) the component represents a separate
principal business or a separate principal operating region; (2) the component is part of an associated plan
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concerning the disposal of a separate principal business or a separate principal operating region; (3) the component
is a subsidiary acquired exclusively for resale.
The definition of discontinued operations includes the following three meanings:
(1) The discontinued operations shall be a component that can be separated by the enterprise. The operation
and cash flows of this component can be clearly distinguished from the other components of the enterprise in its
operation and in the preparation of financial statements.
(2) The discontinued operations shall have a certain scale. The discontinued operations shall represent a
separate principal business or a separate principal operating region, or part of an associated plan concerning the
disposal of a separate principal business or a separate principal operating region.
(3) The discontinued operations shall satisfy the given time requirement. A component that meets the definition
of discontinued operations shall be in one of two situations, i.e. the component has been disposed of before the
balance sheet date, including having been sold and discontinued (e.g. closure or scrapping); this component has
been classified as holding for sale prior to the balance sheet date.
19. Debt investment
None.
20. Other debt investment
None.
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
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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.
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.
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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
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for the disposed equity, and the difference between the sales price and the book value of the disposed 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 for 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 for 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
for impairment reserve shall be made accordingly based on the difference between the book value and the
recoverable amount.
See Note III. (23)"Long-term Assets Impairment" for details about the methods for impairment testing and
provision for impairment applicable to investment properties.
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
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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.
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. 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.
(2) Depreciation method
Annual depreciation
Type Depreciation method Depreciable life Residual rate, %
rate, %
Houses and buildings Straight-line method 20-40 years 5 2.375-4.75
Machinery and
Straight-line method 10 years 5 9.50
equipment
Transportation
Straight-line method 5 years 5 19.00
equipment
Tooling Straight-line method 5 years 5 19.00
Electronic equipment
Straight-line method 5 years 5 19.00
and other equipment
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
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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 construction in progress 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; 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
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the general borrowing occupied.
27. Biological assets
None.
28. Oil and gas assets
None.
29. Intangible assets
(1) Service life and its determination criteria, estimation, amortization method or review procedure
1. The intangible assets of the Company, including land use rights, software, patent rights and non-patented
technologies, are initially measured at cost.
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 signs 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 condition, the impairment tests shall be carried out every year, whether there are signs of impairment or
not.
(2) Collection range of R&D expenditures and relevant accounting treatment
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
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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 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
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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 impairment of assets 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. Contract 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.
(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
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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
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
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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 beneficial to
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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
Disclose accounting policies applied for revenue recognition and measurement by business type
1. Accounting policies applied 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 determines 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 recognizes revenues according to the following principles respectively.
When the Company meets one of the following conditions, it shall be performance obligations fulfilled in a
certain period:
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
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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.
For performance obligations fulfilled at a certain time point rather than in a certain period, the Company
recognizes revenues 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
consider 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) Revenue measurement
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, and consideration payable
to customers as well as other factors.
① Variable consideration
The Company determines the optimal estimation of variable considerations based on the expected value or the
most likely amount, but the transaction price including the variable consideration shall not exceed an amount that
is highly unlikely to result in a material reversal of cumulative recognized revenue when the 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
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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
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 Company. 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. Specific policies of the Company for revenue recognition
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 advances received are 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
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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.
Different revenue recognition and measurement methods for similar businesses using different operation modes
None.
38. Contract cost
Contract cost is divided into contract performance cost and contract acquisition cost.
The cost incurred by the enterprises of the Company for contract performance shall be deemed as a contract
performance cost and recognized as an asset if the following conditions are met:
1. The cost is directly related to a current contract or a contract expected to be acquired, including direct labor
cost, direct material cost, manufacturing (or similar) cost, cost clearly stated to be borne by the customer, and other
costs incurred only as a result of the contract;
2. The cost requires enterprises to use more resources to perform the obligation in the future;
3. The cost is expected to be recoverable.
When an incremental cost incurred by the Company for acquiring a contract is expected to be recovered, it
shall be treated as a contract acquisition cost and recognized as an asset; however, if the asset is amortized for less
than one year, it can be credited to the current profits and losses when incurred.
Assets related to contract costs are amortized on the same basis as the recognition of revenue of goods or
services related to that asset.
If the carrying value of an asset related to the contract cost is higher than the difference between the following
two items, the Company will make a provision for impairment for the excess and recognize it as an asset impairment
loss:
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1. Remaining consideration expected to be obtained as a result of the transfer of goods or services related to
the asset;
2. Cost estimated to be incurred for the transfer of the relevant goods or services.
In case of reversal of the above provision for impairment of assets, the carrying value of the asset shall not be
higher than its book value on the reversal date when the provision for impairment would have not been accrued.
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:
(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 that contain both a part related to assets and a part related to income, separate the
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different parts for accounting treatment; if indistinguishable, classify such subsidies as income-related government
subsidies as a whole.
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.
(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 income tax assets/deferred income 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
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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 for leases as a 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 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.
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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 for leases as a 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
Share repurchase
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. Changes to important accounting policies and accounting estimation
(1) Important accounting policy changes
□ Applicable Not applicable
(2) Important accounting estimation changes
□ Applicable Not applicable
(3) Relevant items in financial statements at the beginning of 2024 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%
Urban maintenance and construction tax Paid turnover tax amount 7%、5%
Please refer to the different corporate
income tax rates, subject of taxation and
Corporate income tax Taxable income
their tax rate disclosures below for
details.
Education surcharges Paid turnover tax amount 3%
Where there are any taxpayers with different corporate income tax rates, details shall be disclosed.
Name of taxpayer Corporate income tax
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%
TOPBAND INDIA PRIVATE LIMITED 25.17%
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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%
TUNNU INNOVATION,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%
TOPBAND JAPAN Co.,Ltd 23.20%
Tunnu Innovation (Hong Kong) Limited 8.25%
TOPBAND SMART DONGNAI (VIETNAM) Co.,Ltd 20.00%
Topband Germany GmbH 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%
Shenzhen Jingfei Investment Co., Ltd. 20.00%
Huizhou Chiding Technology Co., Ltd. 20.00%
Q.B.PTE.LTD 17.00%
TOPBAND MEXICO,S.DER.L.DEC.V. 30.00%
TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. 16.00%
Yolaness Technology (HK) Co., Ltd 8.25%
Huizhou Jiuwan Lvyuan Agriculture Co., Ltd. 20.00%
YOLANESS AFRICA (PTY) LTD 27.00%
2. Tax preference
Shenzhen YAKO Automation Technology Co., Ltd. was recognized as a software enterprise by Economy,
Trade and Information Commission of Shenzhen Municipality on April 27, 2013, and received the software
enterprise certification, which number is Shen R-2010-0237. According to relevant provisions in the Notice on the
Distribution of Several Policies on Further Encouraging the Development of the Software and Integrated Circuit
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Industries issued by the State Council (GF [2011] No. 4), after the sales revenue of the above products is levied for
value-added tax at the statutory tax rate of 13% during the reporting period, the refund-upon-collection policy shall
be applied to the part of actual VAT burden in excess of 3%.
Shenzhen Topband Software Technology Co., Ltd. was recognized as a software enterprise by Economy, Trade
and Information Commission of Shenzhen Municipality on June 28, 2013, and received the software enterprise
certification, which number is Shen R-2013-0616. According to relevant provisions in the Notice on the Distribution
of Several Policies on Further Encouraging the Development of the Software and Integrated Circuit Industries issued
by the State Council (GF [2011] No. 4), after the sales revenue of the above products is levied for value-added tax
at the statutory tax rate of 13% during the reporting period, the refund-upon-collection policy shall be applied to the
part of actual VAT burden in excess of 3%.
Shenzhen Yansheng Software Co., Ltd. was recognized as a software enterprise by Shenzhen Software Industry
Association on August 31, 2017, and received the software enterprise certification, which number is Shen RQ-
2017-0587. According to relevant provisions in the Notice on the Distribution of Several Policies on Further
Encouraging the Development of the Software and Integrated Circuit Industries issued by the State Council (GF
[2011] No. 4), after the sales revenue of the above products is levied for value-added tax at the statutory tax rate of
13% during the reporting period, the refund-upon-collection policy shall be applied to the part of actual VAT burden
in excess of 3%.
According to the Notice of the Ministry of Finance and the State Taxation Administration on VAT Policies for
Software Products (CS [2011] No. 100), the refund-upon-collection policy shall be applied to the part of actual VAT
burden of software products in excess of 3%. The provision of the policy is applicable to Shenzhen Allied Control
System Co., Ltd. and Shenzhen Meanstone Intelligent Technology Co., Ltd., subsidiaries of the Company.
On November 15, 2023, the Company received the Hi-tech Enterprise Certificate (No. GR202344206777)
issued by Shenzhen Science and Technology Innovation Commission, Finance Bureau of Shenzhen Municipality
and Shenzhen Tax Service, State Taxation Administration, which is valid for three years. According to the relevant
provisions of the Enterprise Income Tax Law of the People's Republic of China, the Rules for the Implementation
of the Enterprise Income Tax Law and the Measures for the Administration of the Recognition of High and New
Technology Enterprises, the enterprise income tax rate applicable to the Company for the years 2023 to 2025 is 15%.
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
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Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate
is valid within 3 years from the date of issuance. According to the relevant provisions of the Enterprise Income Tax
Law of the People's Republic of China, the Rules for the Implementation of the Enterprise Income Tax Law and the
Measures for the Administration of the Recognition of High and New Technology Enterprises, the enterprise income
tax rate applicable for the years 2022 to 2024 is 15%.
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. According to the relevant provisions of the Enterprise Income Tax Law of the
People's Republic of China, the Rules for the Implementation of the Enterprise Income Tax Law and the Measures
for the Administration of the Recognition of High and New Technology Enterprises, the enterprise income tax rate
applicable for the years 2021 to 2023 is 15%.
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. According to the
relevant provisions of the Enterprise Income Tax Law of the People's Republic of China, the Rules for the
Implementation of the Enterprise Income Tax Law and the Measures for the Administration of the Recognition of
High and New Technology Enterprises, the enterprise income tax rate applicable for the years 2021 to 2023 is 15%.
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. According to the relevant provisions of the Enterprise Income Tax
Law of the People's Republic of China, the Rules for the Implementation of the Enterprise Income Tax Law and the
Measures for the Administration of the Recognition of High and New Technology Enterprises, the enterprise income
tax rate applicable for the years 2021 to 2023 is 15%.
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
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is valid within 3 years from the date of issuance. According to the relevant provisions of the Enterprise Income Tax
Law of the People's Republic of China, the Rules for the Implementation of the Enterprise Income Tax Law and the
Measures for the Administration of the Recognition of High and New Technology Enterprises, the enterprise income
tax rate applicable for the years 2021 to 2023 is 15%.
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. According to the relevant provisions of the Enterprise
Income Tax Law of the People's Republic of China, the Rules for the Implementation of the Enterprise Income Tax
Law and the Measures for the Administration of the Recognition of High and New Technology Enterprises, the
enterprise income tax rate applicable for the years 2021 to 2023 is 15%.
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. According to the relevant
provisions of the Enterprise Income Tax Law of the People's Republic of China, the Rules for the Implementation
of the Enterprise Income Tax Law and the Measures for the Administration of the Recognition of High and New
Technology Enterprises, the enterprise income tax rate applicable for the years 2021 to 2023 is 15%.
On November 15, 2023, Shenzhen Topband Automation Technology Co., Ltd. received the Hi-tech Enterprise
Certificate (No. GR202344204958) issued by Shenzhen Science and Technology Innovation Commission, Finance
Bureau of Shenzhen Municipality and Shenzhen Tax Service, State Taxation Administration, which is valid for three
years. According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China,
the Rules for the Implementation of the Enterprise Income Tax Law and the Measures for the Administration of the
Recognition of High and New Technology Enterprises, the enterprise income tax rate applicable for the years 2023
to 2025 is 15%.
According to the provisions of the Announcement on Tax and Fee Policies for Further Supporting the
Development of Small and Micro Enterprises and Individual Businesses issued by the Ministry of Finance and the
State Taxation Administration (Announcement 2023 No. 12 by the Ministry of Finance and the State Taxation
Administration), small low-profit enterprises shall calculate their taxable income at a reduced rate of 25% and pay
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enterprise income tax at a rate of 20%, and this policy is extended till December 31, 2027. The provisions of this
policy are applicable the subsidiaries and sub-subsidiaries of the Company, including Hangzhou Zhidong Motor
Technology Co., Ltd., Shenzhen Xinghuo 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 Automobile 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.
3. Others
None.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Items Ending balance Beginning balance
Cash on hand 942,476.08 1,069,045.22
Bank deposit 1,553,769,502.27 1,352,610,241.43
Other monetary capital 47,051,228.49 196,771,603.17
Total 1,601,763,206.84 1,550,450,889.82
Including: total amount deposited abroad 209,092,202.16 270,380,160.96
Other description
1. At the end of the period, the amount of pledges, blocked funds and other restricted funds is RMB 28,066,087.56.
2. At the end of the period, there is no amount deposited overseas or with the repatriation restricted.
2. Tradable financial assets
Unit: RMB
Items Ending balance Beginning balance
Financial assets measured at fair value and whose changes are recorded in
705,951,354.57 656,704,087.16
current profits and losses
Including:
Financial products 357,118,885.97 303,000,000.00
Investment in equity instruments 348,832,468.60 352,334,087.16
Forward foreign exchange contract 1,370,000.00
135
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Including:
Total 705,951,354.57 656,704,087.16
Other description
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 71,179,083.04 48,332,530.42
Commercial acceptance bill 6,818,474.40 5,865,862.11
Total 77,997,557.44 54,198,392.53
(2) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
Type Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Book value Proportio Book value
Proportio Proportion
Amount Amount Amount Proportion Amount n of
n of provision
provision
Notes
receivable
with single
71,179,083.04 91.00% 71,179,083.04 48,332,530.42 88.87% 48,332,530.42
provision
for bad
debts
Including:
Bank
acceptance 71,179,083.04 91.00% 71,179,083.04 48,332,530.42 88.87% 48,332,530.42
bill
Notes
receivable
with
provision 7,036,609.29 9.00% 218,134.89 3.10% 6,818,474.40 6,053,521.27 11.13% 187,659.16 3.10% 5,865,862.11
for bad
debts by
portfolio
Including:
Commercial
acceptance 7,036,609.29 9.00% 218,134.89 3.10% 6,818,474.40 6,053,521.27 11.13% 187,659.16 3.10% 5,865,862.11
bill
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Total 78,215,692.33 100.00% 218,134.89 0.28% 77,997,557.44 54,386,051.69 100.00% 187,659.16 0.35% 54,198,392.53
Description of bad-debt provision on combined basis: Commercial acceptance bill
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Commercial acceptance bill 7,036,609.29 218,134.89 3.10%
Total 7,036,609.29 218,134.89
Explanation of the basis for determining the portfolio:
None.
In case of provision for bad debts on notes receivable based on the general model of expected credit loss:
□ Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Type Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for bad
debts - notes 187,659.16 30,475.73 218,134.89
receivable
Total 187,659.16 30,475.73 218,134.89
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
Unit: RMB
Items Pledged amount at the end of the period
Bank acceptance instruments 1,364,281.25
Total 1,364,281.25
(5) Notes receivable endorsed or discounted by the Company at the end of the period and not due on
balance sheet date
Unit: RMB
137
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Amount derecognized at the end of the Amount not derecognized at the end of
Items
period the period
Bank acceptance instruments 57,744,156.21
Total 57,744,156.21
5. 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) 2,750,777,993.64 2,501,663,449.76
1-2 years 25,501,412.28 26,101,888.01
2-3 years 30,788,650.65 34,426,751.55
Above 3 years 38,718,684.39 38,418,609.23
3-4 years 36,561,755.06 36,343,415.96
4-5 years 822,155.35 742,628.55
Above 5 years 1,334,773.98 1,332,564.72
Total 2,845,786,740.96 2,600,610,698.55
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(2) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type
Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Accounts
receivable with
84,187,120.77 2.96% 84,187,120.77 100.00% 90,294,270.19 3.47% 90,294,270.19 100.00%
single provision
for bad debts
Including:
Accounts
receivable with
a single
significant 81,107,488.78 2.85% 81,107,488.78 100.00% 86,711,553.79 3.33% 86,711,553.79 100.00%
amount and
single bad debt
provision
Accounts
receivable with
not significant
3,079,631.99 0.11% 3,079,631.99 100.00% 3,582,716.40 0.14% 3,582,716.40 100.00%
amount but with
single provision
for bad debts
Accounts
receivable with
provision for 2,761,599,620.19 97.04% 87,344,034.70 3.16% 2,674,255,585.49 2,510,316,428.36 96.53% 78,542,550.80 3.13% 2,431,773,877.56
bad debts by
portfolio
Including:
Provision for
impairment of
combined
2,761,599,620.19 97.04% 87,344,034.70 3.16% 2,674,255,585.49 2,510,316,428.36 96.53% 78,542,550.80 3.13% 2,431,773,877.56
accounts
receivable by
aging
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Total 2,845,786,740.96 100.00% 171,531,155.47 6.03% 2,674,255,585.49 2,600,610,698.55 100.00% 168,836,820.99 6.49% 2,431,773,877.56
140
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Description of bad-debt provisions on individual basis: Provision for impairment of individual accounts receivable
with material balance, and provision for impairment of individual accounts receivable with non-material balance
Unit: RMB
Beginning balance Ending balance
Name Proportion
Provision for Provision for Reasons for
Book balance Book balance of
bad debts bad debts provision
provision
Accounts
receivable with a
It is difficult to
single significant 86,711,553.79 86,711,553.79 81,107,488.78 81,107,488.78 100.00%
recover
amount and single
bad debt provision
Accounts
receivable with not
significant amount It is difficult to
3,582,716.40 3,582,716.40 3,079,631.99 3,079,631.99 100.00%
but with single recover
provision for bad
debts
Total 90,294,270.19 90,294,270.19 84,187,120.77 84,187,120.77
Description of bad-debt provision on combined basis: Provision for impairment of combined accounts receivable by aging
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Provision for impairment of
combined accounts receivable 2,761,599,620.19 87,344,034.70 3.16%
by aging
Total 2,761,599,620.19 87,344,034.70
Explanation of the basis for determining the portfolio:
None.
In case of provision for bad debts on accounts receivable based on the general model of expected credit loss:
□ Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Type Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for
impairment of 168,836,820.99 5,638,039.01 2,448,102.37 -495,602.16 171,531,155.47
accounts receivable
Total 168,836,820.99 5,638,039.01 2,448,102.37 -495,602.16 171,531,155.47
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Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
(4) Accounts receivable actually written off in the current period
Unit: RMB
Items Amount written off
Accounts receivable actually written off 2,448,102.37
Writing off of accounts receivables:
None.
(5) Accounts receivables with top five ending balances grouped by debtors, and contract assets
Unit: RMB
Ending balance of
Percentage in total
Ending balance of provision for
Ending balance of ending balance of
Ending balance of accounts impairment of
Name of unit accounts accounts
contract assets receivables and accounts
receivable receivables and
contract assets receivables and
contract assets
contract assets
No. 1 625,914,392.68 625,914,392.68 21.99% 19,406,301.57
No. 2 65,080,405.66 65,080,405.66 2.29% 65,080,405.66
No. 3 60,451,212.75 60,451,212.75 2.12% 1,873,987.60
No. 4 46,087,486.43 46,087,486.43 1.62% 1,428,712.08
No. 5 44,476,008.85 44,476,008.85 1.56% 1,388,578.74
Total 842,009,506.37 842,009,506.37 29.58% 89,177,985.65
(6) Notes receivable actually written off in the current period
□ Applicable Not applicable
6. Contract assets
□ Applicable Not applicable
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7. Receivables financing
(1) Classified presentation of receivables financing
Unit: RMB
Items Ending balance Beginning balance
Bank acceptance instruments 132,728,581.41 126,350,412.69
Factoring accounts receivable 135,849,185.07 111,968,012.71
Notes receivables of supply chain 33,582,098.27 40,202,216.82
Total 302,159,864.75 278,520,642.22
(2) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type
Proportion Book value Proportion Book value
Amount Proportion Amount Amount Proportion Amount
of provision of provision
Bad debt
provision on 166,310,679.68 54.26% 166,310,679.68 166,552,629.51 59.04% 166,552,629.51
individual basis
Including:
Bank acceptance
132,728,581.41 43.30% 132,728,581.41 126,350,412.69 44.79% 126,350,412.69
bill
Notes receivables
33,582,098.27 10.96% 33,582,098.27 40,202,216.82 14.25% 40,202,216.82
of supply chain
Bad debt
provision on 140,195,237.43 45.74% 4,346,052.36 3.10% 135,849,185.07 115,550,064.71 40.96% 3,582,052.00 3.10% 111,968,012.71
combined basis
Including:
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Factoring
accounts 140,195,237.43 45.74% 4,346,052.36 3.10% 135,849,185.07 115,550,064.71 40.96% 3,582,052.00 3.10% 111,968,012.71
receivable
Total 306,505,917.11 100.00% 4,346,052.36 1.42% 302,159,864.75 282,102,694.22 100.00% 3,582,052.00 1.27% 278,520,642.22
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Description of bad-debt provision on combined basis: Factoring accounts receivables
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Provision for impairment of
140,195,237.43 4,346,052.36 3.10%
factoring accounts receivable
Total 140,195,237.43 4,346,052.36
Explanation of the basis for determining the portfolio:
None.
Provision for bad debts based on the general model of expected credit loss
Unit: RMB
First stage Second stage Third stage
Provision for bad debts Expected credit loss for the Expected credit loss for the Total
Expected credit loss in
entire duration (no credit entire duration (credit
the next 12 months
impairment) impairment occurred)
Balance as of January 1,
3,582,052.00 3,582,052.00
2024
Balance as of January 1,
2024 in the current period
Accrual in the current
764,000.36 764,000.36
period
Balance as of June 30,
4,346,052.36 4,346,052.36
2024
Basis of phasing and percentage of provision for impairment
None.
Significant changes in the book balance of receivables financing with loss reserve changes occurred during the
current period
None.
(3) Provision for bad debts accrued, recovered or reversed in the current period
Unit: RMB
Amount changed in the current period
Beginning
Type Recover or Transfer or Ending balance
balance Provision Other changes
reversal write-off
Provision for
impairment of
factoring 3,582,052.00 764,000.36 4,346,052.36
accounts
receivable
Total 3,582,052.00 764,000.36 4,346,052.36
145
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Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
(4) Receivables financing pledged by the Company at the end of the period
Unit: RMB
Items Pledged amount at the end of the period
Notes receivable 2,901,642.16
Total 2,901,642.16
(5) Receivables financing endorsed or discounted by the Company at the end of the period and not due on
balance sheet date
Unit: RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Items
period the period
Discounted banker's acceptance bill 397,382,094.28
Endorsed banker's acceptance bill 424,759,570.81
Total 822,141,665.09
(6) Receivables financing actually written off in the current period
None.
(7) Changes in increase/decrease in receivables financing in the current period and changes in fair value
None.
(8) Other notes
None.
8. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividends receivable 0.00 0.00
Other receivables 36,971,780.83 36,524,343.36
Total 36,971,780.83 36,524,343.36
146
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(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
Book balance at the beginning of the
Nature of payment Book balance at the end of the period
period
Margin, deposit 30,744,447.22 24,942,814.39
Employee personal loan 7,262,937.66 7,837,283.76
Compensation 2,217,210.33 2,217,210.33
Others 1,027,709.19 2,698,876.37
Export rebate 6,209,708.13 8,682,341.31
Total 47,462,012.53 46,378,526.16
2) 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) 23,383,848.66 21,094,463.33
1-2 years 7,038,402.38 8,282,956.38
2-3 years 10,516,552.37 10,637,952.10
Above 3 years 6,523,209.12 6,363,154.35
3-4 years 504,996.69 824,947.24
4-5 years 2,489,960.27 3,683,926.82
Above 5 years 3,528,252.16 1,854,280.29
Total 47,462,012.53 46,378,526.16
147
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3) Disclosure based on accrual methods of bad-debt provision
Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type
Proportion of Book value Proportion of Book value
Amount Proportion Amount Amount Proportion Amount
provision provision
Bad debt
provision on
6,209,708.13 13.08% 0.00 0.00% 6,209,708.13 8,682,341.31 18.72% 0.00 0.00% 8,682,341.31
individual
basis
Bad debt
provision on
41,252,304.40 86.92% 10,490,231.70 25.43% 30,762,072.70 37,696,184.85 81.28% 9,854,182.76 26.14% 27,842,002.09
combined
basis
Total 47,462,012.53 100.00% 10,490,231.70 22.10% 36,971,780.83 46,378,526.16 100.00% 9,854,182.76 21.25% 36,524,343.40
148
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Description of bad debt provision on individual basis: Export rebate
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
No loss is
Export rebate 8,682,341.31 0.00 6,209,708.13 0.00 0.00% expected for
export rebates
Total 8,682,341.31 0.00 6,209,708.13 0.00
Description of bad-debt provision on combined basis: Provision for impairment of combined accounts receivable
by credit risk features
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivable on credit
risk feature combination basis 41,252,304.40 10,490,231.70 25.43%
for bad debt provision
Total 41,252,304.40 10,490,231.70
Explanation of the basis for determining the portfolio:
None.
Provision for bad debts based on the general model of expected credit loss:
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,
9,854,182.80 9,854,182.80
2024
Balance as of January 1,
2024 in the current period
Accrual in the current
636,048.90 636,048.90
period
Balance as of June 30,
10,490,231.70 10,490,231.70
2024
Basis of phasing and percentage of provision for impairment
None.
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
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4) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Type Recover or Transfer or Ending balance
balance Provision Others
reversal write-off
Provision for
9,854,182.80 748,938.87 -112,889.97 10,490,231.70
bad debts
Total 9,854,182.80 748,938.87 -112,889.97 10,490,231.70
None.
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
5) Other accounts receivable actually written off in the current period
None.
6) Other accounts receivable of the top five debtors in respect of the ending balances
Unit: RMB
Proportion to total Ending balance of
Name of unit Nature of payment Ending balance Aging ending balances of provision for bad
other receivables debts
No. 1 Export rebate 6,209,708.13 Within 1 year 13.08% 0.00
No. 2 Plant rent deposit 3,965,601.09 2-3 years 8.36% 1,189,680.33
Deposits and Within 1 year, 2-3
No. 3 2,337,136.32 4.92% 575,321.20
bonds years
No. 4 Compensation 2,217,210.33 1-2 years 4.67% 221,721.03
Deposits and
No. 5 1,520,178.00 Above 5 years 3.20% 1,520,178.00
bonds
Total 16,249,833.87 34.23% 3,506,900.56
7) Included in other accounts receivables due to centralized management of funds
None.
9. Prepayments
(1) List of prepayments by aging
Unit: RMB
150
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Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 43,795,294.88 85.15% 41,217,371.39 93.49%
1-2 years 6,422,871.68 12.49% 2,649,254.74 6.01%
2-3 years 1,058,674.14 2.06% 173,711.61 0.39%
Above 3 years 154,049.09 0.30% 47,730.79 0.11%
Total 51,430,889.79 44,088,068.53
Cause for late settlement of prepayments aging more than 1 year with significant amount:
None.
(2) Accounts prepaid of the top five prepaying entities for ending balance
The total amount of the Company's top five prepayments at the end of the reporting period grouped by debtors
is RMB 14,447,189.50, accounting for 28.09% of the total year-end balance of prepayments.
Other description:
None.
10. Inventory
Whether the Company is required to comply with the disclosure requirements of the real estate industry
No
(1) Inventory classification
Unit: RMB
Ending balance Beginning balance
Provision for Provision for
decline in value decline in value
of inventories of inventories
Items or provision for or provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
cost cost
Purchase of raw
1,054,025,793.10 86,179,485.30 967,846,307.80 883,406,451.52 84,959,315.65 798,447,135.87
materials
Goods in
140,499,323.53 140,499,323.53 187,129,741.78 187,129,741.78
process
Goods on hand 541,745,665.23 22,067,058.65 519,678,606.58 477,050,469.57 22,099,671.18 454,950,798.39
Goods shipped
132,913,533.76 4,577,489.24 128,336,044.52 118,434,872.84 4,566,699.62 113,868,173.22
in transit
Self-
manufactured 82,189,918.47 6,593,601.69 75,596,316.78 86,682,330.39 4,046,746.35 82,635,584.04
semi-finished
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product
Materials
entrusted for 14,803,522.17 14,803,522.17 16,730,489.94 16,730,489.94
processing
Low-value
589,513.35 589,513.35 54,792.27 54,792.27
consumables
Total 1,966,767,269.61 119,417,634.88 1,847,349,634.73 1,769,489,148.31 115,672,432.80 1,653,816,715.51
(2) Data resources recognized as inventory
None.
(3) Provision for impairment on inventories and on contract performance costs
Unit: RMB
Decrease amount in the current
Increase in the current period
Beginning period
Items Ending balance
balance Reversal or
Provision Others Others
write-off
Purchase of raw
84,959,315.65 13,140,758.10 -155,032.31 11,765,556.14 86,179,485.30
materials
Goods on hand 22,099,671.18 4,892,313.04 -716.94 4,924,208.63 22,067,058.65
Self-
manufactured
4,046,746.35 2,954,730.60 -2,673.94 405,201.32 6,593,601.69
semi-finished
product
Goods shipped
4,566,699.62 103,172.89 92,383.27 4,577,489.24
in transit
Total 115,672,432.80 21,090,974.63 -158,423.19 17,187,349.36 119,417,634.88
Provision for impairment on inventories on combined basis
None.
Accrual criteria for provision for impairment on inventories on combined basis
None.
(4) Closing balance of inventories with capitalized amount of borrowing costs
None.
(5) Amortized amount of contract performance cost in the current period
None.
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11. Assets held for sale
None.
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 214,291,642.32 201,581,758.39
Other prepaid taxes 5,252,767.00 6,944,576.68
Deferred expense 146,738.42 4,686,592.42
Total 219,691,147.74 213,212,927.49
Other description:
None.
14. Debt investment
□ Applicable Not applicable
15. Other debt investment
□ Applicable Not applicable
Other description:
None.
16. Other equity instrument investments
Unit: RMB
Cause for
designated
Losses Cumulative Cumulative
Gains credited Dividend measurement
credited to gain credited loss credited
to other incomes at fair value
other to other to other
Project Beginning comprehensiv recognize Ending and for
comprehensiv comprehensiv comprehensiv
name balance e income in d in the balance changes
e income in e income at e income at
the current current crediting to
the current the end of the end of
period period other
period current period current period
comprehensiv
e income
Suzhou 20,000,000.0 20,000,000.0 Strategic
Legendsem 0 0 investment
153
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i
Technology
Co., Ltd.
Suzhou
SEEEx 21,192,950.0 21,192,950.0 Strategic
Technology 0 0 investment
Co., Ltd.
41,192,950.0 41,192,950.0
Total
0 0
Other description:
None.
17. Long-term receivables
None.
154
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18. Long-term equity investment
Unit: RMB
Changes in increase/decrease in the current period
Declaration of distribution for
cash dividends or profits
Other changes in equity
Decrease in investment
comprehensive income
Additional investment
Adjustment to other
Profits and
Opening losses on Ending
Beginning
balance of investment Provision Ending balance balance of
Investee balance (book
provision for recognized for Others (book value) provision for
value)
impairment under impairment impairment
equity
method
I. Joint venture
II. Associated enterprises
Tai'an
Yuchengxin
Power 9,764,719.19 9,764,719.19
Technology
Co., Ltd.
Shenzhen Daka
Optoelectronics 5,839,292.85 -9,317.40 5,829,975.45
Co., Ltd.
Shanghai
Yidong Power
9,722,015.21 9,722,015.21
Technology
Co., Ltd.
Dongguan
Jujin Plastic
22,186,871.24 -124,218.65 22,062,652.59
Technology
Co., Ltd.
Subtotal 37,748,179.30 9,764,719.19 -133,536.05 37,614,643.25 9,764,719.19
Total 37,748,179.30 9,764,719.19 -133,536.05 37,614,643.25 9,764,719.19
Determination of net amount of recoverable amount at fair value less disposal expense
□ Applicable Not applicable
Determination of net amount of recoverable amount at present value of estimated future cash flows
□ Applicable Not applicable
Cause for significant discrepancy between abovementioned information and information used in the previous year's
impairment test or external information
None.
Cause for significant discrepancy between information used in the previous year's impairment test of the Company
and actual information in current year
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None.
Other description
None.
19. Other non-current financial assets
None.
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 15,666,159.21 15,666,159.21
2. Increase in the
1,419,187.51 1,419,187.51
current period
(1) Provision or
1,419,187.51 1,419,187.51
amortization
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3. Decrease in the
current period
(1) Disposal
(2) Other transfer out
4. Ending balance 17,085,346.72 17,085,346.72
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 101,985,215.34 101,985,215.34
2. Beginning book
103,404,402.85 103,404,402.85
value
Determination of net amount of recoverable amount at fair value less disposal expense
□ Applicable Not applicable
Determination of net amount of recoverable amount at present value of estimated future cash flows
□ Applicable Not applicable
Cause for significant discrepancy between abovementioned information and information used in the previous year's
impairment test or external information
None.
Cause for significant discrepancy between information used in the previous year's impairment test of the Company
and actual information in current year
None.
Other description:
None.
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(2) Investment property with fair value measurement model
□ Applicable Not applicable
(3) Transfer to investment property and measurement at fair value
□ Applicable Not applicable
(4) Investment property without property certificate of title
□ Applicable Not applicable
21. Fixed assets
Unit: RMB
Items Ending balance Beginning balance
Fixed assets 2,327,328,836.76 2,102,862,886.72
Total 2,327,328,836.76 2,102,862,886.72
(1) Situation about fixed assets
Unit: RMB
Houses and Machinery and Transportation Electronics and
Items Total
buildings equipment equipment other equipment
I. Original book value:
1. Beginning balance 1,345,250,527.85 1,372,182,154.73 3,590,498.65 73,330,922.05 2,794,354,103.28
2. Increase in the current
185,857,016.69 142,780,472.69 552,687.21 5,939,439.52 335,129,616.11
period
(1) Purchase 146,132.18 106,958,010.37 552,434.98 5,923,801.01 113,580,378.54
(2) Transfer into
185,442,975.97 35,636,017.71 221,078,993.68
construction in progress
(3) Increment from
consolidation
(4) Impact of exchange
267,908.54 186,444.61 252.23 15,638.51 470,243.89
rate changes
3. Decrease in the
3,138,477.24 31,595,665.84 70,540.59 1,083,655.08 35,888,338.75
current period
(1) Disposal or
19,290,970.04 569,620.16 19,860,590.20
scrapping
(2) Impact of exchange
3,138,477.24 12,304,695.80 70,540.59 514,034.92 16,027,748.55
rate changes
4. Ending balance 1,527,969,067.30 1,483,366,961.58 4,072,645.27 78,186,706.49 3,093,595,380.64
II. Accumulated
depreciation
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1. Beginning balance 175,071,877.29 474,301,808.15 2,620,340.89 39,497,190.23 691,491,216.56
2. Increase in the current
16,671,881.13 69,495,312.32 260,951.61 5,241,762.95 91,669,908.01
period
(1) Accrual 16,639,357.40 69,495,312.32 260,718.00 5,236,252.75 91,631,640.47
(2) Impact of exchange
32,523.73 233.61 5,510.20 38,267.54
rate changes
3. Decrease in the
231,719.27 15,974,235.35 19,426.20 669,199.87 16,894,580.69
current period
(1) Disposal or
13,861,520.71 511,181.69 14,372,702.40
scrapping
(2) Impact of exchange
231,719.27 2,112,714.64 19,426.20 158,018.18 2,521,878.29
rate changes
4. Ending balance 191,512,039.15 527,822,885.12 2,861,866.30 44,069,753.31 766,266,543.88
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
IV. Book value
1. Ending book value 1,336,457,028.15 955,544,076.46 1,210,778.97 34,116,953.18 2,327,328,836.76
2. Beginning book value 1,170,178,650.56 897,880,346.58 970,157.76 33,833,731.82 2,102,862,886.72
(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
□ Applicable Not applicable
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(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 527,629,047.04 568,107,950.65
Total 527,629,047.04 568,107,950.65
(1) Construction in progress
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Test equipment to be
131,735,114.43 131,735,114.43 162,683,370.16 162,683,370.16
commissioned
Decoration of
183,486.24 183,486.24 183,486.24 183,486.24
Huizhou Plant
Huizhou YAKO
172,369,153.77 172,369,153.77 112,992,616.66 112,992,616.66
Automation Plant
Sporadic items 1,064,980.66 1,064,980.66 845,983.99 845,983.99
Nantong Lithium
Battery Industrial 162,639,894.21 162,639,894.21 244,737,333.79 244,737,333.79
Park
Ningbo Topband
18,546,992.00 18,546,992.00 16,898,437.26 16,898,437.26
Industrial Park
Qingdao Plant 1,835,469.17 1,835,469.17 1,835,469.17 1,835,469.17
Topband Huizhou No.
37,559,181.34 37,559,181.34 27,708,391.40 27,708,391.40
2 Industrial Park
Topband (India) Plant 0.00 0.00 68,648.97 68,648.97
Vietnam Dong Nai
1,694,775.22 1,694,775.22 154,213.01 154,213.01
Decoration
Total 527,629,047.04 527,629,047.04 568,107,950.65 568,107,950.65
160
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(2) Changes in the important construction in progress in the current period
Unit: RMB
Interest
Proportion
Including: capitali
of Accumulated
Amount of transfer Other interest zation
Beginning Increase in the accumulat Project amount of Source of
Project name Budget into fixed assets decrements this Ending balance capitalization rate in
balance current period ed project progress interest capitals
this period period amount in the the
investmen capitalization
current period current
t in budget
period
Ningbo Topband
465,704,300 16,898,437.26 4,519,456.04 502,876.29 2,368,025.01 18,546,992.00 92.75% 93.00% 6,883,762.50 Raised funds
Industrial Park
Huizhou YAKO
370,000,000 112,992,616.66 64,477,498.50 0.00 5,100,961.39 172,369,153.77 80.63% 81.00% 2,995,081.38 2,457,373.25 3.90% Others
Automation Plant
Topband Huizhou
No. 2 Industrial 190,000,000 27,708,391.40 11,053,381.02 225,105.24 977,485.84 37,559,181.34 20.40% 20.00% Others
Park
Nantong Lithium
Battery Industrial 800,000,000 244,737,333.79 102,617,554.86 184,714,994.44 0.00 162,639,894.21 43.42% 45.00% Raised funds
Park
Total 1,825,704,300 402,336,779.11 182,667,890.42 185,442,975.97 8,446,472.24 391,115,221.32 9,878,843.88 2,457,373.25
161
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(3) Provision for impairment of construction in progress 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
(1) Productive biological assets with cost measurement model
□ Applicable Not applicable
(2) Impairment test of productive biological assets with cost measurement model
□ Applicable Not applicable
(3) Productive biological assets with fair value measurement model
□ 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 180,033,528.88 5,875,457.96 185,908,986.84
2. Increase in the current period 18,672,401.76 18,672,401.76
162
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(1) Lease contract in the current period 18,431,531.86 18,431,531.86
(2) Changes to contract 240,869.90 240,869.90
(3) Exchange rate changes
3. Decrease in the current period 7,835,237.11 7,835,237.11
(1) Contracts with lease terminated in the
1,341,819.23 1,341,819.23
current period
(2) Changes to contract 2,762,788.36 2,762,788.36
(3) Exchange rate changes 3,730,629.52 3,730,629.52
4. Ending balance 190,870,693.53 5,875,457.96 196,746,151.49
II. Accumulated depreciation
1. Beginning balance 84,290,633.58 171,367.52 84,462,001.10
2. Increase in the current period 23,173,800.79 146,886.45 23,320,687.24
(1) Accrual 23,173,800.79 146,886.45 23,320,687.24
(2) Changes to contract
(3) Exchange rate changes
3. Decrease in the current period 2,245,448.24 2,245,448.24
(1) Disposal 1,001,638.36 1,001,638.36
(2) Changes to contract
(3) Exchange rate changes 1,243,809.88 1,243,809.88
4. Ending balance 105,218,986.13 318,253.97 105,537,240.10
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 85,651,707.40 5,557,203.99 91,208,911.39
2. Beginning book value 95,742,895.30 5,704,090.44 101,446,985.74
(2) Impairment test of right-of-use assets
□ Applicable Not applicable
Other description:
None.
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26. Intangible assets
(1) Situation of intangible assets
Unit: RMB
Land usage Non-patented
Items Patent right Software Trademark Total
right technology
I. Original book
value
1. Beginning balance 391,220,157.09 435,321.58 599,800,783.26 29,281,753.38 9,728,450.00 1,030,466,465.31
2. Increase in the
118,140,301.90 1,483,823.58 119,624,125.48
current period
(1) Purchase 1,483,823.58 1,483,823.58
(2) Internal R&D 118,140,301.90 118,140,301.90
(3) Increment from
consolidation
3. Decrease in the
1,848,511.01 41,207.20 1,889,718.21
current period
(1) Disposal
(2) Decrease from
exchange rate 1,848,511.01 41,207.20 1,889,718.21
changes
4. Ending balance 389,371,646.08 435,321.58 717,941,085.16 30,724,369.76 9,728,450.00 1,148,200,872.58
II. Accumulated
amortization
1. Beginning balance 29,135,751.55 435,321.58 362,526,912.03 25,091,697.68 6,165,886.52 423,355,569.36
2. Increase in the
3,462,946.78 68,137,406.57 1,278,850.13 72,879,203.48
current period
(1) Accrual 3,462,946.78 68,137,406.57 1,278,850.13 72,879,203.48
3. Decrease in the
176,082.19 37,774.76 213,856.95
current period
(1) Disposal
(2) Decrease from
exchange rate 176,082.19 37,774.76 213,856.95
changes
4. Ending balance 32,422,616.14 435,321.58 430,664,318.60 26,332,773.05 6,165,886.52 496,020,915.89
III. Provision for
impairment
1. Beginning balance
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal
164
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4. Ending balance
IV. Book value
1. Ending book value 356,949,029.94 287,276,766.56 4,391,596.71 3,562,563.48 652,179,956.69
2. Beginning book
362,084,405.54 237,273,871.23 4,190,055.70 3,562,563.48 607,110,895.95
value
The intangible assets from internal development of the Company at the end of the current period accounts for 44.05%
of the intangible asset balance
(2) Data resources recognized as intangible asset
□ Applicable Not applicable
(3) Land-use-right without certificate of title
None.
(4) Impairment test of intangible assets
□ Applicable Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
Decrement
Increase in the current in the
Name of investees or items forming Beginning period current
period Ending balance
goodwill balance
Disposal formed by
Disposal
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
3,006,892.59 3,006,892.59
Technology 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
165
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(2) Impairment of goodwill
Unit: RMB
Increase in Decrement in
the current the current
Name of investees or items forming goodwill Beginning balance period period Ending balance
Provision Disposal
Shenzhen Allied Control System Co., Ltd. 53,768,699.68 53,768,699.68
Shenzhen Meanstone Intelligent Technology Co.,
3,006,892.59 3,006,892.59
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 collectible amounts
Determination of net amount of recoverable amount at fair value less disposal expense
□ Applicable Not applicable
Determination of net amount of recoverable amount at present value of estimated future cash flows
□ Applicable Not applicable
Cause for significant discrepancy between abovementioned information and information used in the previous year's
impairment test or external information
None.
Cause for significant discrepancy between information used in the previous year's impairment test of the Company
and actual information in current year
None.
(5) Fulfillment of performance commitment and corresponding goodwill impairment
There was a performance commitment when goodwill was established, and the reporting period or the period
preceding the reporting period is within the performance commitment period
□ Applicable Not applicable
Other description
166
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None.
28. Long-term deferred expenses
Unit: RMB
Increase in the Amortization in Other reduced
Items Beginning balance Ending balance
current period the current period amount
Renovation cost 182,289,438.61 17,446,014.88 33,497,863.02 3,111,393.84 163,126,196.63
Others 514,969.49 120,353.98 150,177.04 485,146.43
Total 182,804,408.10 17,566,368.86 33,648,040.06 3,111,393.84 163,611,343.06
Other description
None.
29. Deferred income tax assets/deferred income tax liabilities
(1) Non-offset deferred tax assets
Unit: RMB
Ending balance Beginning balance
Items Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Plus: Provision for
308,623,316.62 49,470,431.03 294,545,474.56 46,678,454.85
impairment of assets
Deductible loss 465,839,128.33 77,514,523.72 390,699,314.09 65,486,472.23
Amortization of
154,693,580.73 23,204,037.11 133,446,425.92 20,016,963.88
intangible assets
Deferred income 9,301,017.56 1,638,005.03 11,071,292.42 1,881,581.86
Lease liabilities 98,420,478.96 17,108,528.02 107,881,215.35 20,976,523.71
Total 1,036,877,522.20 168,935,524.91 937,643,722.34 155,039,996.53
(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 190,248.74 28,537.31 412,730.28 61,909.54
control
Book-tax difference of fixed assets
69,682,079.01 14,235,548.46 71,278,660.11 14,299,191.58
depreciation
Book-tax difference of rental income 6,570,083.32 1,642,520.83 6,120,608.60 1,530,152.15
Changes in fair value of tradable
243,585,487.17 40,842,306.07 248,096,517.73 41,833,063.71
financial assets
Right-of-use assets 92,493,476.58 16,357,054.47 102,290,793.51 20,006,539.83
167
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Total 412,521,374.82 73,105,967.14 428,199,310.23 77,730,856.81
(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
Deferred tax assets 168,935,524.91 155,039,996.53
Deferred tax liabilities 73,105,967.14 77,730,856.81
(4) Details of unrecognized deferred tax assets
Unit: RMB
Items Ending balance Beginning balance
Deductible temporary differences 3,673,067.23 13,441,041.61
Deductible loss 208,169,615.75 170,793,360.18
Total 211,842,682.98 184,234,401.79
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: RMB
Year Ending amount Beginning amount Remarks
2024 796.72 796.72
2025 2,046,917.10 2,106,518.93
2026 13,323,172.03 14,899,970.42
2027 18,850,821.86 26,254,597.91
2028 33,175,698.37 27,003,257.68
2019 and later 7,869,309.39
No time limit 132,902,900.28 100,528,218.52
Total 208,169,615.75 170,793,360.18
Other description
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- 196,364,678.33 196,364,678.33 120,187,135.05 120,187,135.05
168
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term assets
Total 196,364,678.33 196,364,678.33 120,187,135.05 120,187,135.05
Other description:
None.
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31. Assets with limited ownership or use right
Unit: RMB
End of period Beginning of period
Items
Book balance Book value Type of restriction Restriction situation Book balance Book value Type of restriction Restriction situation
Bonds, financial
Bonds, frozen by
management money
Monetary Bonds, frozen by Bonds, amount of court, financial
28,066,087.56 28,066,087.56 39,587,800.49 39,587,800.49 in subscription period,
capital court frozen property management in
amount of frozen
subscription period
property
Pledge borrowings Pledge borrowings
Fixed assets 120,856,655.54 118,464,700.90 Loan in mortgage 120,856,655.54 119,899,873.68 Loan in mortgage
with buildings with buildings
Intangible Pledge borrowings Pledge borrowings
61,302,043.62 58,879,881.53 Loan in mortgage 61,302,043.62 59,492,901.97 Loan in mortgage
assets with land use right with land use right
Pledge borrowings Pledge borrowings
Construction
172,369,153.77 172,369,153.77 Loan in mortgage with construction in 112,992,616.66 112,992,616.66 Loan in mortgage with construction in
in progress
progress progress
Total 382,593,940.49 377,779,823.76 334,739,116.31 331,973,192.80
Other description:
None.
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32. Short-term loans
(1) Classification of short-term loans
Unit: RMB
Items Ending balance Beginning balance
Credit loan 127,061,000.00 218,148,750.00
Letter of credit 200,000,000.00 60,000,000.00
Outstanding discounted bills 1,337,035.22 1,200,000.00
Total 328,398,035.22 279,348,750.00
Classification of short-term loans:
None.
(2) Overdue short-term loans
None.
33. Tradable financial liabilities
None.
34. Derivative financial liabilities
None.
35. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bill 1,462,800,767.21 927,833,178.70
Total 1,462,800,767.21 927,833,178.70
The total amount of notes payable due but unpaid at the end of the current period is RMB 0.00.
36. Accounts payable
(1) Accounts payable listed
Unit: RMB
Items Ending balance Beginning balance
Within 1 year 2,059,358,056.75 1,953,706,413.01
1-2 years 1,615,622.31 2,139,042.19
171
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2-3 years 445,650.16 598,185.50
3 years and above 1,626,526.20 1,182,755.64
Total 2,063,045,855.42 1,957,626,396.34
(2) Significant accounts payable aged over 1 year or overdue
None.
37. Other accounts payable
Unit: RMB
Items Ending balance Beginning balance
Interest payable 0.00 0.00
Dividends payable 0.00 0.00
Other account payable 268,554,442.45 151,341,029.40
Total 268,554,442.45 151,341,029.40
(1) Interest payable
None.
(2) Dividends payable
None.
(3) Other payables
1) Other payables listed by fund nature
Unit: RMB
Items Ending balance Beginning balance
Equity acquisition payments payable 115,547,600.00
Long-term assets 63,216,848.21 60,945,718.78
Expenses 43,194,219.04 23,067,327.79
Current accounts 30,686,290.11 37,115,852.17
Margin, deposit 8,479,699.64 9,559,259.36
Others 7,429,785.45 20,308,975.30
Restricted stock repurchase obligations 0.00 343,896.00
Total 268,554,442.45 151,341,029.40
2) Significant other accounts payable aged over 1 year or overdue
None.
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38. Advances received
(1) Advances received listed
Unit: RMB
Items Ending balance Beginning balance
Within 1 year (inclusive) 3,527,349.78 2,808,227.54
Total 3,527,349.78 2,808,227.54
(2) Significant advances received aged over 1 year or overdue
None.
39. Contract liabilities
Unit: RMB
Items Ending balance Beginning balance
Advances on sales 172,851,052.12 168,681,571.89
Total 172,851,052.12 168,681,571.89
Significant contract liabilities aged over 1 year
None.
Amount of and reasons for significant changes in book value during the reporting period
None.
40. Employee compensation payable
(1) Presentation of employee pay payable
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
I. Short-term
243,115,049.48 974,036,790.28 1,048,317,964.91 168,833,874.85
compensation
II. Post-employment
benefits - defined 152,733.65 52,659,053.95 52,091,211.56 720,576.04
contribution plan
Total 243,267,783.13 1,026,695,844.23 1,100,409,176.47 169,554,450.89
(2) Reporting of short-term remuneration
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
1. Wages, bonuses, allowances 238,419,554.35 932,079,837.31 1,005,819,179.88 164,680,211.78
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and subsidies
2. Employee benefits 112,922.58 16,269,134.85 16,039,049.87 343,007.56
3. Social insurance expense 1,513,581.33 13,211,432.46 14,250,091.66 474,922.13
Including: medical insurance 470,909.51
1,509,551.71 10,919,422.80 11,958,065.00
premiums
Industrial injury insurance 984,851.38 4,012.62
4,029.62 984,868.38
expense
Maternity insurance expense 0.00 1,307,158.28 1,307,158.28 0.00
4. Housing provident fund 0.00 11,676,496.67 11,676,496.67 0.00
5. Trade union funds and staff
489.28 279,492.05 279,442.23 539.10
education funds
6. Others 3,068,501.94 520,396.94 253,704.60 3,335,194.28
Total 243,115,049.48 974,036,790.28 1,048,317,964.91 168,833,874.85
(3) List of defined contribution plan
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
1. Basic endowment 50,795,181.00 705,631.93
146,223.44 50,235,772.51
insurance
2. Unemployment 1,863,872.95 14,944.11
6,510.21 1,855,439.05
insurance expense
Total 152,733.65 52,659,053.95 52,091,211.56 720,576.04
Other description
None.
41. Taxes payable
Unit: RMB
Items Ending balance Beginning balance
VAT (value-added tax) 11,633,980.05 38,272,199.07
Corporate income tax 33,260,417.96 27,477,646.56
Individual income tax 29,531,701.75 14,288,257.83
Urban maintenance and construction tax 83,836.40 1,068,455.46
Education surcharge 59,870.51 763,182.49
Property tax 4,838,295.65 8,767,641.43
Land use tax 461,935.79 1,184,938.91
Other taxes 201,765.16 552,283.82
Total 80,071,803.27 92,374,605.57
Other description
None.
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42. Liabilities held for sale
None.
43. Non-current liabilities due within one year
Unit: RMB
Items Ending balance Beginning balance
Long-term loans due within one year 320,778,490.00 326,208,942.16
Lease liabilities due within one year 40,666,635.35 44,414,655.87
Total 361,445,125.35 370,623,598.03
Other description:
None.
44. Other current liabilities
Unit: RMB
Items Ending balance Beginning balance
Tax amount to be resold 3,970,501.17 3,598,492.74
Notes receivable that have been endorsed
56,407,120.99 28,963,200.29
but not derecognized
Total 60,377,622.16 32,561,693.03
Changes in increase/decrease of short-term bond payable:
None.
45. Long-term loans
(1) Classification of long-term loans
Unit: RMB
Items Ending balance Beginning balance
Pledge borrowings 70,500,000.00 500,000.00
Credit loan 280,499,999.98 345,679,999.99
Pledge + guaranteed borrowings 154,888,984.88 91,567,877.48
Total 505,888,984.86 437,747,877.47
Classification of long-term loans:
None.
Additional notes, including interest rate ranges:
None.
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46. Bonds payable
None.
47. Lease liabilities
Unit: RMB
Items Ending balance Beginning balance
Lease payment 61,848,683.74 69,176,893.60
Unrecognized financing cost -5,851,886.81 -7,747,082.57
Total 55,996,796.93 61,429,811.03
Other description:
None.
48. Long-term payables
None.
49. Long-term employee compensation payable
None.
50. Estimated liabilities
None.
51. Deferred income
Unit: RMB
Increase in the Decrement in the
Items Beginning balance Ending balance Reasons of formation
current period current period
Governmental Governmental subsidies
11,146,292.42 500,000.00 2,295,274.86 9,351,017.56
subsidies related to assets
Total 11,146,292.42 500,000.00 2,295,274.86 9,351,017.56
Other description:
None.
52. Other non-current liabilities
None.
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53. Share capital
Unit: RMB
Increase/decrease of change this time (+, -)
Conversion
Beginning balance Stock of Ending balance
Issuance of new
divide accumulatio Others Subtotal
shares
nd n fund into
shares
Total number of
1,246,834,988.00 1,246,834,988.00
shares
Other description:
None.
54. Other equity instruments
None.
55. Capital reserve
Unit: RMB
Decrement in
Increase in the
Items Beginning balance the current Ending balance
current period
period
Capital premium (share
2,056,248,939.03 79,998,327.85 1,976,250,611.18
premium)
Other capital reserves 156,380,980.48 156,380,980.48
Total 2,212,629,919.51 79,998,327.85 2,132,631,591.66
Additional descriptions, including the changes in increase/decrease in the current period and the reasons for changes:
Note: The capital premium (share premium) was decreased by 79,998,327.85 due to acquisition of the equity of the
minority shareholder of YAKO Automation.
56. Treasury shares
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Repurchase of the
Company's shares by 112,426,101.24 82,354,021.60 194,780,122.84
auction trading
Total 112,426,101.24 82,354,021.60 194,780,122.84
Additional descriptions, including the changes in increase/decrease in the current period and the reasons for changes:
None.
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57. Other comprehensive income
Unit: RMB
Amount incurred in the current period
Minus:
profits and Minus:
losses current
Attribut
included in retained
able to
other earnings
Beginning Amount of pre- Minus: minorit
Items comprehens included in Attributable to Ending balance
balance income tax income y
ive income other parent company
incurred in the tax shareho
previously comprehens after tax
current period expense lders
and ive income
after
transferred in the
tax
in the previous
current period
period
II. Other
comprehensive
income that is 11,932,029.41 -33,937,857.88 -33,937,857.88 -22,005,828.47
reclassified into
profits and losses
Difference in
translation of
foreign currency 11,932,029.41 -33,937,857.88 -33,937,857.88 -22,005,828.47
financial
statements
Total amount of
other
11,932,029.41 -33,937,857.88 -33,937,857.88 -22,005,828.47
comprehensive
income
Additional note, including the adjustment to the effective portion of the profits and losses of cash flow hedging
transferred to the amount initially recognized for the hedged item:
None.
58. Special reserve
None.
59. Surplus reserves
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Statutory surplus
219,446,936.59 219,446,936.59
reserve
Total 219,446,936.59 219,446,936.59
Note for surplus reserve, including changes in increase/decrease in the current period, cause of the 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 before adjustment 2,706,499,696.23 2,271,529,693.82
Total retained earnings at the beginning of the period (+ for increase, -
0.00 0.00
for decrease)
Retained earnings at the beginning of last period after adjustment 2,706,499,696.23 2,271,529,693.82
Plus: net profit attributable to owners of parent company in current year 388,828,515.18 515,513,995.18
Minus: accrual of statutory surplus reserves 4,682,742.45
Common stock dividends payable 73,502,693.28 75,861,250.32
Retained earnings at the end of the period 3,021,825,518.13 2,706,499,696.23
Details of adjustments to beginning retained earnings:
1). Due to the retroactive adjustments made according to the Accounting Standards for Business Enterprises and
relevant new provisions therein, RMB 0.00 of the beginning/closing retained earnings was affected.
2). Due to changes to the accounting policies, RMB 0.00 of the beginning/closing retained earnings was affected.
3). Due to corrections of material accounting errors, RMB 0.00 of the beginning/closing retained earnings was
affected.
4). Due to changes to the contract scope as a result of the same control, RMB 0.00 of the beginning/closing retained
earnings was affected.
5). Due to other adjustments, RMB 0.00 of the beginning/closing retained earnings was affected in total.
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 5,005,642,038.82 3,811,892,079.31 4,245,380,855.39 3,332,427,372.30
Other business 10,143,126.77 5,318,922.34 10,740,298.33 5,399,460.85
Total 5,015,785,165.59 3,817,211,001.65 4,256,121,153.72 3,337,826,833.15
Breakdown of operating incomes and operating costs:
□ Applicable Not applicable
Information related to performance obligations:
□ Applicable Not applicable
Other description
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None.
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of income corresponding to performance obligations under the signed
contracts but not yet performed or not fully performed is RMB 0.00, including RMB 0.00 expected to be recognized
as income in Year ( ), RMB 0.00 expected to be recognized as income in Year ( ) and RMB 0.00 expected to be
recognized as income in Year ( ).
Information about variable consideration in contracts:
None.
Significant changes to contract or significant adjustments to transaction price
None.
62. Taxes and surcharges
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Urban maintenance and construction tax 12,005,978.29 8,735,223.48
Education surcharge 8,577,082.19 6,339,213.38
Property tax 5,191,428.79 5,088,912.36
Land use tax 780,357.23 650,764.25
Stamp duty 3,303,662.35 3,189,645.46
Others 6,865.42 28,626.66
Total 29,865,374.27 24,032,385.59
Other description:
None.
63. Management expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 122,566,301.05 114,187,392.52
Depreciation and amortization 33,240,964.57 35,033,783.00
Intermediary service expenses 7,423,354.12 9,399,249.84
Office and traveling expenses 7,276,860.24 6,997,968.78
Rent and utility fees 6,473,096.51 10,120,081.51
Property insurance expenses 1,649,400.64 2,052,153.88
Others 11,957,661.49 16,175,892.29
Equity incentive expenses 7,508,043.78
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Total 190,587,638.62 201,474,565.60
Other description
None.
64. Selling expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 97,956,934.31 81,107,869.20
Business entertainment fees and
28,473,653.46 18,480,497.11
traveling expenses
Intermediary service expenses 13,639,586.77 9,341,011.65
Material costs 11,641,993.77 8,184,375.87
Low-value consumables 9,398,566.87 4,016,987.34
Advertising and exhibition fees 7,009,515.84 4,731,322.60
Others 12,667,880.45 10,598,513.79
Equity incentive expenses 6,573,868.05
Total 180,788,131.47 143,034,445.61
Other description:
None.
65. R&D expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 230,923,453.91 187,631,470.05
Depreciation and amortization 78,330,098.77 53,316,811.19
Material and mould costs 38,258,046.94 31,214,349.49
Intermediary service expenses 6,255,916.91 3,290,664.70
Rent and utilities 9,829,472.60 6,440,176.21
Low-value consumables 5,072,914.74 3,829,519.60
Traveling expenses 4,614,366.71 2,884,334.59
Others 15,256,627.42 14,826,583.48
Equity incentive expenses 13,856,640.80
Total 388,540,898.00 317,290,550.11
Other description
None.
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66. Finance expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Interest expense 28,863,971.32 19,596,648.04
Minus: interest income 15,326,718.58 15,720,869.63
Profits and losses on exchange -43,037,714.77 -55,962,757.24
Others 718,877.88 1,094,503.59
Total -28,781,584.15 -50,992,475.24
Other description
None.
67. Other revenues
Unit: RMB
Source for other revenues Amount incurred in the current period Amount incurred in prior period
Governmental subsidies 15,418,390.00 13,429,284.92
Return of individual income tax service
1,125,817.55 1,169,120.09
charge
Tax reduction and exemption 404,450.00 196,389.92
VAT refund upon collection 1,910,980.21 2,399,764.36
Input tax plus tax reduction 2,555,337.33
Total 21,414,975.09 17,194,559.29
68. Net gain from exposure hedges
None.
69. Gain from fair-value changes
Unit: RMB
Sources of gain from fair-value changes Amount incurred in the current period Amount incurred in prior period
Financial liabilities held for trading -6,041,282.00
Total -6,041,282.00
Other description:
None.
70. Investment income
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Long-term equity investment income -133,536.05 -941,734.97
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accounted by the cost method
Investment income from disposal of
-2,928,835.90
long-term equity investments
Investment income from disposal of
2,004,081.40 248,584.66
tradable financial assets
Profits and losses of foreign exchange
155,182.00 377,800.00
derivatives after settlement
Total 2,025,727.35 -3,244,186.21
Other description
None.
71. Credit impairment loss
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Loss of bad debt of notes receivable -30,475.73 185,610.25
Bad debt loss of accounts receivable -5,638,039.01 -712,252.82
Bad debt loss of other receivables -748,938.87 -1,063,126.85
Loss from bad debt of receivable
-764,000.36 -787,139.10
financing
Total -7,181,453.97 -2,376,908.52
Other description
None.
72. Asset impairment loss
Unit: RMB
Amount incurred in the Amount incurred in
Items
current period prior period
I. Impairment loss on inventories and on contract performance costs -21,090,974.63 -23,666,214.06
Total -21,090,974.63 -23,666,214.06
Other description
None.
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 -2,580,837.22 -1,279,902.83
Total -2,580,837.22 -1,279,902.83
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74. Non-operating income
Unit: RMB
Amount incurred in Amount incurred in Amount included in the current non-recurring
Items
the current period prior period profit and loss
Non-current assets disposal
41,884.93 523,039.11 41,884.93
revenue
Others 1,697,418.41 4,068,291.96 1,697,418.41
Total 1,739,303.34 4,591,331.07 1,739,303.34
Other description:
None.
75. Non-operating expenses
Unit: RMB
Amount included in the
Amount incurred in the Amount incurred in prior
Items current non-recurring profit
current period period
and loss
Losses on scrapping of non-
557,666.76 2,530,330.52 557,666.76
current assets
Customer quality deduction
4,019,824.31 1,024,170.82 4,019,824.31
expenses
Others 986,395.93 696,257.35 986,395.93
Total 5,563,887.00 4,250,758.69 5,563,887.00
Other description:
None.
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 55,408,628.96 13,309,352.18
Deferred tax expense -18,630,055.15 -7,265,622.74
Total 36,778,573.81 6,043,729.44
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Items Amount incurred in the current period
Total profit 426,336,558.69
Income tax expenses calculated at statutory/applicable tax rates 63,950,483.80
Influence of different tax rates applicable to subsidiary 8,430,548.71
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Effect of income tax adjustment in previous period 1,752,590.09
Impact of non-taxable income -768,549.54
Impact of non-deductible cost, expense and loss 1,238,956.08
Impact of deductible loss of unrecognized deferred tax assets in
-2,647,397.76
previous period
Impact of deductible temporary differences or deductible losses
16,413,282.10
of unrecognized deferred tax assets in the current period
Impact of additional deductible expenses -24,551,103.91
Influence of preferential tax policy for the sub-subsidiary in
-17,975,445.05
Vietnam
The impact of changes in tax rates on the initial balance of
805,605.52
deferred tax
Other adjustments -9,870,396.23
Income tax expenses 36,778,573.81
Other description
None
77. Other comprehensive income
Refer to 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
Interest income 31,716,998.12 10,914,934.74
Governmental subsidies 17,690,558.27 15,871,269.60
Current accounts 19,012,136.34 36,602,276.24
Others 3,550,121.17 4,104,276.19
Total 71,969,813.90 67,492,756.77
Explanation of other cash received related to operating activities:
None.
Other cash paid related to operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Service charge 1,872,495.39 913,661.81
Out-of-pocket expenses 174,203,813.59 149,586,149.20
Margin and deposit expenses 5,922,397.40 4,309,067.57
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Employee loans 6,752,625.17 4,501,875.40
Others 18,234,322.12 16,019,796.16
Total 206,985,653.67 175,330,550.14
Explanation of other cash paid related to operating activities:
None.
(2) Cash related to investment activities
Other cash received related to investment activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Recovery of foreign exchange deposit 2,235,246.36
Total 2,235,246.36
Significant 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
Foreign exchange deposit 7,268,000.00
Total 7,268,000.00
Significant cash paid related to investment activities
None.
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Bill discount 5,021,283.53 3,101,583.74
Total 5,021,283.53 3,101,583.74
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
Note margin
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Share repurchase 82,697,917.60 6,199,099.20
Payment for lease liabilities 25,026,658.23 16,010,724.01
Takeover of minority equity 29,761,025.80 7,800,000.00
Total 137,485,601.63 30,009,823.21
Explanation of other cash paid related to financing activities:
None.
Changes in liabilities from financing activities
□ Applicable Not applicable
(4) Explanation of cash flows presented in net value
Information of
Items Basis for presentation in net value Financial impact
relevant facts
Cash flows from
Cash inflows and outflows of projects The net value listed for "Cash flow from
Cash paid for purchasing and
with quick turnover, large amount and payments for investments" is RMB
investment redeeming financial
short period 130,000,000.00.
management products
Cash flows from
Cash inflows and outflows of projects The net value listed for "Cash flow of cash
Cash received from purchasing and
with quick turnover, large amount and receipts from withdraw of investments" is
investment recovery redeeming financial
short period RMB 318,000,000.00.
management products
(5) Major activities not involving cash receipts and payments in the current period but influencing the
financial position of enterprise or may influence the cash flow of enterprise in the future, and their financial
influence
None.
79. Supplementary information of cash flow statement
(1) Supplementary materials of cash flow statement
Unit: RMB
Amount in the Amount in the
Supplementary information
current period previous period
1.Adjusting net profit to cash flow from operating activities:
Net profit 389,557,984.88 258,337,757.51
Plus: Provision for impairment of assets 28,272,428.60 26,043,122.58
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of
91,631,640.46 83,492,575.76
productive biological assets
Depreciation of right-of-use assets 23,320,687.24 21,919,558.35
Amortization of intangible assets 72,879,203.48 50,804,303.17
Amortization of long-term deferred expenses 33,648,040.06 21,427,228.65
Loss from disposal of fixed assets, intangible assets and other long-term assets 2,580,837.22 -1,279,902.83
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(income marked with "-")
Losses on scrapping of fixed assets (income marked with "-") 557,666.76 2,007,291.41
Loss from changes in fair value (income marked "-") 0.00 6,041,282.00
Finance expenses (income marked with "-") 14,586,264.55 -44,158,884.67
Investment loss (income marked with "-") -2,025,727.35 3,244,186.21
Decrease in deferred tax assets (increase marked with "-") -13,895,528.38 -10,498,339.47
Increase in deferred tax liabilities (decrease marked with "-") -4,624,889.67 3,097,914.16
Decrease in inventory (increase marked with "-") -214,623,893.85 216,980,327.68
Decrease in operating receivables (increase marked with "-") -408,247,566.47 82,527,391.45
Increase in operating payables (decrease marked with "-") 454,405,998.28 -222,491,229.78
Others 2,291,028.86 30,347,889.00
Net cash flow from operating activities 470,314,174.67 527,842,471.18
2Major 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 1,573,697,119.28 1,732,898,730.97
Minus: beginning balance of cash 1,494,743,705.76 1,374,281,693.23
Plus: ending balance of cash equivalents
Minus: beginning balance of cash equivalents
Net increase in cash and cash equivalents 78,953,413.52 358,617,037.74
(2) Net cash paid for obtaining subsidiaries in the current period
None.
(3) Net cash received for disposal of subsidiaries in the current period
None.
(4) Composition of cash and cash equivalents
Unit: RMB
Items Ending balance Beginning balance
I. Cash 1,573,697,119.28 1,494,743,705.76
Including: cash in stock 942,476.08 1,069,045.22
Bank deposit available for payment at
1,549,267,936.90 1,333,111,676.06
any time
Other monetary capital for payment at
23,486,706.30 160,562,984.48
any time
III. Balance of cash and cash equivalents
1,573,697,119.28 1,494,743,705.76
at the end of the period
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(5) Information listed with limited scope of use but still pertaining to cash and cash equivalents
None.
(6) Monetary capitals not falling under cash and cash equivalents
Unit: RMB
Amount in the Amount in the
Items Reason for not falling under cash and cash equivalents
current period previous period
Financial management products, freezing by court, etc.
Bank deposit 4,501,565.37 19,498,565.37
in subscription period
Other monetary Bonds and accrued but not received interests at the end
23,564,522.19 36,208,618.69
capital of period
Total 28,066,087.56 55,707,184.06
Other description:
None.
(7) Explanation of other major activities
None.
80. Notes to items in change statement of owner's equity
Provide the description of the "Other" item for adjusting the closing balance of previous year, the adjusted amount,
etc.:
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 581,698,506.49
Including: US dollars 53,899,767.64 7.1268 384,132,864.02
Euros 2,811,858.91 7.6617 21,543,619.41
Hong Kong dollars 1,889,217.75 0.9127 1,724,251.26
Indian Rupee 1,166,065,700.48 0.0854 99,556,952.07
Vietnamese Dong 224,546,057,579.00 0.0003 62,861,668.82
Japanese Yen 92,578,411.00 0.0447 4,141,772.95
Romanian Leu 964,186.86 1.5306 1,475,756.91
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Mexican Peso 16,230,866.42 0.3857 6,260,942.13
South African Rand 1,754.74 0.3869 678.92
Accounts receivable 1,388,701,169.47
Including: US dollars 171,419,313.93 7.1268 1,221,671,166.52
Euros
Hong Kong dollars
Indian Rupee 1,212,685,727.34 0.0854 103,537,295.19
Vietnamese Dong 203,685,909,356.00 0.0003 57,021,653.30
Japanese Yen 144,643,356.00 0.0447 6,471,054.46
Long-term loans
Including: US dollars
Euros
Hong Kong dollars
Receivables financing 140,195,237.46
Including: US dollars 19,671,554.90 7.1268 140,195,237.46
Accounts payable - 54,330,219.46
Including: US dollars 3,112,628.79 7.1268 22,183,082.86
Euro 6,622.53 7.6617 50,739.84
Indian Rupee 107,728,532.53 0.0854 9,197,701.12
Vietnamese Dong 60,989,120,871.00 0.0003 17,073,839.40
Japanese Yen 99,048,613.00 0.0447 4,431,236.85
Mexican Peso 3,612,818.90 0.3857 1,393,619.39
Other accounts receivable - 8,132,136.07
Including: US dollars 850,050.71 7.1268 6,058,141.40
Euro 7,885.83 7.6617 60,418.86
Indian Rupee 16,722,881.53 0.0854 1,427,774.63
Vietnamese Dong 1,446,404,003.00 0.0003 404,919.26
Japanese Yen 4,043,138.00 0.0447 180,881.91
Other accounts payable - 7,169,802.90
Including: US dollars 369,495.47 7.1268 2,633,320.32
Euro 1,035.72 7.6617 7,935.38
Vietnamese Dong 16,176,333,083.00 0.0003 4,528,547.21
Other description:
None.
(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
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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 SMART DONG NAI (VIETNAM) Co., Ltd, a sub-subsidiary of the Company, is located in
Dong Nai, Vietnam, with Vietnamese Dong as the recording currency;
3. Topband Germany GmbH, a sub-subsidiary of the Company, is located in Unterfhring, Germany, with
Euro as the recording currency;
4. TOPBAND JAPAN Co., Ltd., a sub-subsidiary of the Company, is located in Nagoya, Japan, with Japanese
Yen as the recording currency;
5. Q.B.PTE.LTD, a sub-subsidiary of the Company, is located in Singapore, with Singapore dollar as the
recording currency;
6. TOPBAND SMART EUROPE COMPANY LIMITED S.R.L., a sub-subsidiary of the Company, is located
in Timisoara, Romania, with Lei as the recording currency;
7. TOPBAND MEXICO, S.DER.L.DEC.V, a 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 lease liabilities
□ Applicable Not applicable
Rent of simply treated short-term leases or low-value assets
Applicable □ Not applicable
The rents of simply treated short-term leases credited to relevant asset costs or current profits and losses of the
current year is RMB 704,585.31.
Information involving sale and leaseback transactions
None.
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(2) The Company as the lessor
Operating lease by lessor
Applicable □ Not applicable
Unit: RMB
Including: incomes related to variable
Items Rental income lease payments not credited to rental
receipts
Rental income 11,495,486.59 0.00
Total 11,495,486.59 0.00
Financing lease by lessor
□ Applicable Not applicable
Undiscounted rental receipts for each of the next five years
□ Applicable Not applicable
Reconciliation statement of undiscounted rental receipts and net lease investment
None.
(3) Profits and losses on finance lease/sales recognized by manufacturer or distributor
□ Applicable Not applicable
83. Data resources
None.
84. Others
None.
VIII. R&D costs
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 289,007,969.63 247,893,618.50
Depreciation and amortization 79,398,391.61 54,667,719.99
Material and mould costs 42,359,538.83 38,967,345.91
Intermediary service expenses 8,037,357.06 4,469,525.83
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Rent and utilities 9,980,960.92 6,920,851.94
Low-value consumables 5,371,208.09 4,789,230.16
Traveling expenses 5,099,031.15 3,984,021.65
Others 16,143,359.85 13,386,188.53
Equity incentive expenses 13,856,640.80
Total 455,397,817.14 388,935,143.31
Including: expensed R&D costs 388,540,898.00 317,290,550.11
Capitalized R&D costs 66,856,919.14 71,644,593.20
1. R&D items satisfying the capitalization conditions
Unit: RMB
Increase in the current
Decrease amount in the current period
period
Beginning Ending
Items Internal Transferred to
balance Recognized as balance
development Others current profit
intangible assets
expenditure and loss
Intelligent controller
87,956,121.45 28,988,740.68 76,292,043.57 40,652,818.56
project
Lithium battery
40,719,362.86 31,927,745.85 41,848,258.33 30,798,850.38
project
Motor and control
5,516,130.58 5,940,432.61 0.00 11,456,563.19
system project
Total 134,191,614.89 66,856,919.14 118,140,301.90 82,908,232.13
Major capitalized R&D items
□ Applicable Not applicable
Provision for impairment of development costs
□ Applicable Not applicable
2. Major outsourced projects under development
Other description:
None.
IX. Changes in the scope of consolidation
□ Applicable Not applicable
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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 Production and
1,000,000.00 Shenzhen Shenzhen 100.00% Establishment
Technology Co., Ltd. sales
Shenzhen Topband
Production and
Automation Technology 35,000,000.00 Shenzhen Shenzhen 100.00% Establishment
sales
Co., Ltd.
Shenzhen Topband Battery Production and
50,000,000.00 Shenzhen Shenzhen 100.00% Establishment
Co., Ltd. sales
Chongqing Topband Production and
50,000,000.00 Chongqing Chongqing 100.00% Establishment
Industrial Co., Ltd. sales
Topband (Hong Kong) Co., HKD 155 Hong Hong
Investor: 100.00% Establishment
Ltd. million Kong Kong
Huizhou Topband Electrical Production and
300,000,000.00 Huizhou Huizhou 100.00% Establishment
Technology Co., Ltd. sales
TOPBAND INR 1.96 Production and
India India 100.00% Establishment
INDIA PRIVATE LIMITED billion sales
Shenzhen YAKO Consolidation
Production and
Automation Technology 60,000,000.00 Shenzhen Shenzhen 100.00% under different
sales
Co., Ltd. control
Consolidation
Shenzhen Allied Control Production and
55,999,998.00 Shenzhen Shenzhen 100.00% under different
System Co., Ltd. sales
control
Huizhou Topband Battery Production and
50,000,000.00 Huizhou Huizhou 100.00% Establishment
Co., Ltd. sales
Ningbo Topband Intelligent Production and
300,000,000.00 Ningbo Ningbo 100.00% Establishment
Control Co., Ltd. sales
Shenzhen Meanstone Consolidation
Production and
Intelligent Technology Co., 7,600,000.00 Shenzhen Shenzhen 77.25% under different
sales
Ltd. control
Consolidation
Shenzhen Yansheng Production and
1,500,000.00 Shenzhen Shenzhen 100.00% under different
Software Co., Ltd. sales
control
Consolidation
Hangzhou Zhidong Motor Production and
1,500,000.00 Hangzhou Hangzhou 75.00% under different
Technology Co., Ltd. sales
control
TOPBAND
SMART DONGNAI USD 33.5 Production and
Vietnam Vietnam 100.00% Establishment
(VIETNAM) COMPANY million sales
LIMITED
Topband
Euro 25,000 Germany Germany Sales 100.00% Establishment
Germany GmbH
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TOPBAND
Yen 30 million Japan Japan Sales 100.00% Establishment
JAPAN Co., Ltd
Shenzhen Topband Supply
5,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Chain Services Co., Ltd.
Shenzhen Topband
50,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Investment Co., Ltd.
Shenzhen Spark IOT
10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Technology Co., Ltd.
Shenzhen Tunnu Innovation
10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Co., Ltd.
Shenzhen Senxuan
10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Technology Co., Ltd.
Topband (Qingdao) Production and
10,000,000.00 Qingdao Qingdao 100.00% Establishment
Intelligent Control Co., Ltd. sales
Shenzhen Tengyi Industrial
1,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Co., Ltd.
Consolidation
Taixing Ninghui Lithium Production and
105,000,000.00 Taixing Taixing 100.00% under different
Battery Co., Ltd. sales
control
Shenzhen Topband
Automotive Electronics Co., 10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Ltd.
Q.B.PTE.LTD SGD 10,000 Singapore Singapore Sales 100.00% Establishment
TOPBAND MXN 20 Production and
Mexico Mexico 100.00% Establishment
MEXICO,S.DE R.L.DEC.V. million sales
Tunnu Innovation (Hong Hong Hong
10,000,000.00 Sales 100.00% Establishment
Kong) Limited Kong Kong
TOPBAND
SMART EUROPE ROL 20.1816
Romania Romania Sales 100.00% Establishment
COMPANY LIMITED million
S.R.L.
Huizhou YAKO Automation Production and
50,000,000.00 Shenzhen Shenzhen 100.00% Establishment
Technology Co., Ltd. sales
Shenzhen Zhongli
2,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Consulting Co., Ltd.
TUNNU The The
USD 10,000 United United Sales 100.00% Establishment
INNOVATION,INC States States
Nantong Topband Youneng Production and
100,000,000.00 Nantong Nantong 100.00% Establishment
Technology Co., Ltd. sales
Shenzhen Topband Motor Production and
10,000,000.00 Shenzhen Shenzhen 100.00% Establishment
Co., Ltd. sales
Shenzhen Yueshang Robot Production and
10,000,000.00 Shenzhen Shenzhen 100.00% Establishment
Co., Ltd. sales
Shenzhen Jingfei Investment
10,000,000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Co., Ltd.
Huizhou Chiding Production and
5,000,000.00 Huizhou Huizhou 100.00% Establishment
Technology Co., Ltd. sales
Yolaness Technology (HK) Hong Hong
USD 500,000 Sales 100.00% Establishment
Co., Limited Kong Kong
Huizhou Jiuwan Lvyuan Production and
5,000,000.00 Huizhou Huizhou 100.00% Establishment
Agriculture Co., Ltd. sales
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YOLANESS South South
Sales 100.00% Establishment
AFRICA (PTY) LTD 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 scope of consolidation, the basis for control:
None.
Basis for determining whether the Company is an agent or a principal:
None.
Other description:
None.
(2) Important non-wholly-owned subsidiaries
None.
(3) Major financial information of important non-wholly-owned subsidiaries
None.
(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.
Other description:
None.
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2. Transactions causing the owner's equity share change but still controlling the subsidiary
(1) Explanation of changes in owner's equity component in a subsidiary
On May 29, 2024, the Company entered into an Equity Transfer Agreement with Mr. Zhu Juzhong, a
shareholder of YAKO Automation, Yanxun Investment and Yanyun Investment for the acquisition of 28.46% equity
of YAKO Automation. After completion of the transaction, the Company will hold 100% equity of YAKO
Automation.
(2) Impact of transaction on minority equity and interests attributable to parent company
Unit: RMB
Purchase cost/disposal consideration
-- Cash 165,068,000.00
-- Fair value of non-cash assets
Total of purchase costs/disposal considerations 165,068,000.00
Minus: share of subsidiary net assets calculated in proportion to
85,069,672.15
equity acquired/disposed of
Difference 79,998,327.85
Including: adjusted capital reserve 79,998,327.85
Adjusted surplus reserves
Adjusted retained profit
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 the Beginning balance/amount incurred in
current period the previous period
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Joint venture:
Sum of the following items calculated
according to the shareholding ratio
Associated enterprises:
Total book value of investment 37,614,643.25 35,680,088.03
Sum of the following items calculated
according to the shareholding ratio
-- Net profit -133,536.05 -941,734.98
-- Total comprehensive income -133,536.05 -941,734.98
(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
Explanation for structured subject not included in the scope of consolidated financial statements
6. Others
None.
XI. Government subsidies
1. Government subsidies recognized as receivables at the end of the reporting period
□ Applicable Not applicable
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Reason for failure to receive a government subsidy with expected amount at the expected time point
□ Applicable Not applicable
2. Liability items involving government subsidies
Applicable □ Not applicable
Unit: RMB
Amount Transferred
Newly accounted to the
Other
increased into non- amount of
Accounting Beginning changes in Ending Related to
subsidy in operating other
title balance the current balance assets/incomes
the current income in incomes in
period
period the current the current
period period
Governmental
Deferred subsidies
11,146,292.42 500,000.00 2,295,274.86 9,351,017.56
income related to
assets
Total 11,146,292.42 500,000.00 2,295,274.86 9,351,017.56 /
3. Government subsidies included in current profits and losses
Applicable □ Not applicable
Unit: RMB
Accounting title Amount incurred in the current period Amount incurred in prior period
Other income 15,418,390.00 13,429,284.92
Other description:
None.
XII. Risks related to financial instruments
1. Various risks from financial instruments
The main financial instruments of the Company include equity investment, debt investment, borrowings,
accounts receivable, accounts payable, convertible bonds, 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.
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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 credit risk, liquidity risk and market
risk.
(I) Risk management objective and policy
The risk management of the Company is intended to achieve an appropriate balance between risks and returns,
mitigate the negative impact of risks on the Company's business performance to minimum, 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 (Hong Kong) Co., Ltd. that purchase and sell some materials and products in US dollars, Euros
and Hong Kong dollars, its subsidiary TOPBAND INDIA PRIVATE LIMITED that uses Indian Rupee, its sub-
subsidiary TOPBAND SMART DONG NAI (VIETNAM) Co., Ltd that use Vietnamese Dong, its sub-subsidiary
Topband Germany GmbH that uses Euros, its sub-subsidiary TOPBAND JAPAN Co., Ltd. that uses Japanese Yen,
its sub-subsidiary Q.B.PTE.LTD that uses Singapore dollars, its sub-subsidiary TOPBAND MEXICO,
S.DER.L.DEC.V. that uses Mexican Peso, its sub-subsidiary TOPBAND SMART EUROPE COMPANY LIMITED
S.R.L. that uses Romanian Leu, its sub-subsidiary Tunnu Innovation (Hong Kong) Limited that uses Hong Kong
dollars, its sub-subsidiary TUNNU INNOVATION, INC that uses US dollars, and its sub-subsidiary YOLANESS
AFRICA (PTY) LTD that uses Rand as the settlement currency, other major business activities of the Company are
settled in Chinese Yuan. As of June 30, 2024, the balances of assets and liabilities of the Company are in Chinese
Yuan, except the balances of assets or liabilities stated in VII. (81) foreign currency monetary items are in US dollars,
Hong Kong dollars, Euros, Vietnamese Dong, Japanese Yen, Indian Rupee, Romanian Leu, Mexican Peso, Rand
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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
As of June 30, 2024, the maximum credit risk exposure that may cause financial losses to the Company was
mainly due to a failure of the other party to fulfill obligations, which led to financial asset losses to the Company,
and financial guarantee undertaken by the Company, including recognized carrying amounts of financial assets in
consolidated balance sheets; for financial instruments measured at the fair value, the carrying value only reflects its
risk exposure, rather than the maximum risk exposure that varies with the fair value in the future.
In order to reduce credit risks, the Company has arranged special positions responsible for determining credit
limits, conducting credit review and 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.
3. Flow 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.
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2. Hedging
(1) The Company carries out hedging business for risk management
□ Applicable Not applicable
(2) The Company carries out hedging business that meets the conditions, and applies hedge accounting
□ Applicable Not applicable
(3) The Company carries out hedging business for risk management and is expected to realize the risk management objects,
but does not apply hedge 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) Transfer of financial assets with assets in continuing involvement
□ Applicable Not applicable
Other description:
None.
XIII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Unit: RMB
Ending fair value
Items The third level of fair
The first level of The second-level Total
fair value fair value value measurement
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measurement measurement
I. Continuous fair value measurement -- -- -- --
(I) Tradable financial assets 705,951,354.57 705,951,354.57
1. Financial asset at fair value and changes
705,951,354.57 705,951,354.57
through current profits and losses
(1) Debt instrument investment 357,118,885.97 357,118,885.97
(2) Equity instrument investment 348,832,468.60 348,832,468.60
(II) Other equity instrument investments 41,192,950.00 41,192,950.00
(III) Receivables financing 302,159,864.75 302,159,864.75
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.
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.
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9. Others
None.
XIV. Related parties and related party 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
Company
Wu Yongqiang Shenzhen 17.00% 17.00%
Information of parent company of the Company
None.
The ultimate controller of the Company is Wu Yongqiang.
Other description:
None.
2. Profile of subsidiaries of the Company
See Note X. 1 for information about our subsidiaries.
3. Information on the joint ventures and associated enterprises of the Company
See Note X. 3 for the key joint ventures or associated enterprises of the Company.
4. Other related parties
Names of other related parties Relationship between other related parties and the Company
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
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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
Other description
None.
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
Is the
Related Amount incurred Amount
Approved transaction
Related party transaction in the current incurred in
transaction limit limit
content period prior period
exceeded
Shenzhen Jizhiguang Electronics Purchase of
6,723,361.25 34,000,000.00 No 6,213,891.11
Co., Ltd. raw materials
Shenzhen ORVIBO Technology Co., Purchase of
No 5,534.37
Ltd. raw materials
Jiangsu Donghai Semiconductor Co., Purchase of
15,125.00 No 49,179.00
Ltd. raw materials
Dongguan Jujin Plastic Technology Purchase of
14,204,210.67 No 6,775,522.76
Co., Ltd. raw materials
Jiangxi Sarui Microelectronics Purchase of
1,915.00 No
Technology Co., Ltd. raw materials
List of goods sold/services provided
Unit: RMB
Amount incurred in the Amount incurred in prior
Related party Related transaction content
current period period
Shenzhen ORVIBO
LED product 5,010,688.23 7,332,764.07
Technology Co., Ltd.
Related transactions involving the purchase and sale of goods and the provision and acceptance of services
None.
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
None.
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(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
3,841,100.00 3,266,000.00
personnel
(8) Other related transactions
None.
6. Receivables and payables due to related parties
(1) Item receivable
Unit: RMB
Ending balance Beginning balance
Project Provision
Related party Provision for
name Book balance for bad Book balance
bad debts
debts
Accounts
Shenzhen ORVIBO Technology Co., Ltd. 1,843,588.12 57,151.23 3,747,603.20 116,175.70
receivable
Prepayment Shenzhen ORVIBO Technology Co., Ltd. 3,037.05
(2) Payables
Unit: RMB
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Book balance at the end Book balance at the
Project name Related party
of the period beginning of the period
Accounts payable Shenzhen Jizhiguang Electronics Co., Ltd. 2,185,143.57 866,888.49
Accounts payable Jiangsu Donghai Semiconductor Co., Ltd. 6,215.01 51,217.50
Accounts payable Guangdong Huixin Semiconductor Co., Ltd. 2,180.53 311.50
Jiangxi Sarui Microelectronics Technology Co.,
Accounts payable 2,113.67 100,087.00
Ltd.
Accounts payable Dongguan Jujin Plastic Technology Co., Ltd. 13,483,054.08 8,514,044.84
Other account
Dongguan Jujin Plastic Technology Co., Ltd. 39,000.00
payable
7. Commitment of related parties
None.
8. Others
None.
XV. Share-based payment
1. General situation of share-based payments
□ Applicable Not applicable
2. Equity-settled share-based payments
□ Applicable Not applicable
3. Cash-settled share-based payments
□ Applicable Not applicable
4. Share-based payments in the current period
□ Applicable Not applicable
5. Modification and termination of share-based payments
None.
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6. Others
None.
XVI. Commitments and contingencies
1. Important commitments
Important commitments that existed on the balance sheet date
None.
2. Contingencies
(1) Significant contingencies on the balance sheet date
None.
(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
None.
XVIII. Other important matters
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
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Within 1 year (including 1 year) 1,402,570,972.20 1,287,212,115.69
1-2 years 2,212,939.85 5,268,760.84
2-3 years 504,549.02 791,447.31
Above 3 years 2,108,422.46 2,078,206.45
3-4 years 127,257.51 97,063.40
4-5 years 646,390.97 648,578.33
Above 5 years 1,334,773.98 1,332,564.72
Total 1,407,396,883.53 1,295,350,530.29
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(2) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type
Proportion Book value Book value
Proportion of
Amount Proportion Amount of Amount Proportion Amount
provision
provision
Accounts receivable
with single
164,229,607.00 11.67% 2,994,574.69 1.82% 161,235,032.31 120,945,555.34 9.34% 2,994,574.69 2.48% 117,950,980.65
provision for bad
debts
Including:
Accounts receivable
with a single
significant amount 163,165,846.62 11.59% 1,930,814.31 1.18% 161,235,032.31 119,881,794.96 9.26% 1,930,814.31 1.61% 117,950,980.65
and single bad debt
provision
Accounts receivable
with insignificant
single amount but 1,063,760.38 0.08% 1,063,760.38 100.00% 1,063,760.38 0.08% 1,063,760.38 100.00% 0.00
separate bad debt
provision
Accounts receivable
with provision for
1,243,167,276.53 88.33% 38,764,092.85 3.12% 1,204,403,183.68 1,174,404,974.95 90.66% 36,854,741.91 3.14% 1,137,550,233.04
bad debts by
portfolio
Including:
Accounts receivable
with provision for
bad debts by 1,243,167,276.53 88.33% 38,764,092.85 3.12% 1,204,403,183.68 1,174,404,975.00 90.66% 36,854,741.91 3.14% 1,137,550,233.04
combination (aging
analysis method)
Total 1,407,396,883.53 100.00% 41,758,667.54 2.97% 1,365,638,215.99 1,295,350,530.29 100.00% 39,849,316.60 3.08% 1,255,501,213.69
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Description of bad-debt provisions on individual basis: Provision for impairment of individual accounts receivable
with material balance, and provision for impairment of individual accounts receivable with non-material balance
Unit: RMB
Beginning balance Ending balance
Name Reasons
Provision for Provision for Proportion
Book balance Book balance for
bad debts bad debts of provision
provision
Accounts receivable
with a single It is
significant amount 119,881,794.96 1,930,814.31 163,165,846.62 1,930,814.31 1.18% difficult to
and single bad debt recover
provision
Accounts receivable
with insignificant It is
single amount but 1,063,760.38 1,063,760.38 1,063,760.38 1,063,760.38 100.00% difficult to
separate bad debt recover
provision
Total 120,945,555.34 2,994,574.69 164,229,607.00 2,994,574.69
Description of bad-debt provision on individual basis:
□ Applicable Not applicable
Description of bad-debt provision on combined basis: Provision for impairment of combined accounts receivable
(by aging analysis)
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivable with
provision for bad debts by
1,243,167,276.53 38,764,092.85 3.12%
combination (aging analysis
method)
Total 1,243,167,276.53 38,764,092.85
Explanation of the basis for determining the portfolio:
None.
In case of provision for bad debts on accounts receivable based on the general model of expected credit loss:
□ Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
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Amount changed in the current period
Beginning
Type Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for
39,849,316.60 1,909,350.94 41,758,667.54
bad debts
Total 39,849,316.60 1,909,350.94 41,758,667.54
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
(4) Accounts receivable actually written off in the current period
□ Applicable Not applicable
(5) Accounts receivables with top five ending balances grouped by debtors, and contract assets
Unit: RMB
Ending balance of
Percentage in total
Ending balance of provision for
Ending balance of ending balance of
Ending balance of accounts impairment of
Name of unit accounts accounts
contract assets receivables and accounts
receivable receivables and
contract assets receivables and
contract assets
contract assets
No. 1 323,155,473.00 323,155,473.00 22.96% 10,017,819.67
No. 2 62,930,587.27 62,930,587.27 4.47%
No. 3 60,451,212.75 60,451,212.75 4.30% 1,873,987.60
No. 4 51,165,729.71 51,165,729.71 3.64%
No. 5 38,722,194.36 38,722,194.36 2.75% 1,200,388.03
Total 536,425,197.09 536,425,197.09 38.12% 13,092,195.30
2. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividends receivable 0.00 0.00
Other receivables 345,934,589.72 359,906,911.54
Total 345,934,589.72 359,906,911.54
(1) Interest receivable
□ Applicable Not applicable
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(2) Dividends receivable
□ Applicable Not applicable
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
Book balance at the end Book balance at the
Nature of payment
of the period beginning of the period
Other receivables 350,687,107.19 363,928,704.37
Total 350,687,107.19 363,928,704.37
2) 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) 343,578,118.20 357,493,959.23
Within 1 year (inclusive), subtotal 343,578,118.20 357,493,959.23
1-2 years 1,795,356.92 1,691,269.55
2-3 years 1,011,302.65 547,927.64
Above 3 years 4,302,329.42 4,195,547.95
3-4 years 228,279.20 556,684.11
4-5 years 1,219,964.00 2,458,782.00
Above 5 years 2,854,086.22 1,180,081.84
Total 350,687,107.19 363,928,704.37
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3) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type
Proportion of Book value Proportion of Book value
Amount Proportion Amount Amount Proportion Amount
provision provision
Bad debt provision on
337,070,238.89 96.12% 0.00% 337,070,238.89 352,237,197.66 96.79% 0.00% 352,237,197.66
individual basis
Bad debt provision on
13,616,868.30 3.88% 4,752,517.47 34.90% 8,864,350.83 11,691,506.71 3.21% 4,021,792.83 34.40% 7,669,713.88
combined basis
Total 350,687,107.19 100.00% 4,752,517.47 1.36% 345,934,589.72 363,928,704.37 100.00% 4,021,792.83 1.11% 359,906,911.54
Description of bad-debt provision on individual basis:
None.
Description of bad-debt provision on combined basis:
None.
Explanation of the basis for determining the portfolio:
None.
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Provision for bad debts based on the general model of expected credit loss:
Unit: RMB
First stage Second stage Third stage
Provision for bad Expected credit loss Expected credit loss for the Expected credit loss for the Total
debts in the next 12 entire duration (no credit entire duration (credit
months impairment) impairment occurred)
Balance as of January
4,021,792.83 4,021,792.83
1, 2024
Balance as of January
1, 2024 in the current
period
Accrual in the current
730,724.64 730,724.64
period
Balance as of June 30,
4,752,517.47 4,752,517.47
2024
Basis of phasing and percentage of provision for impairment
□ Applicable Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
4) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Type Recover or Transfer or Ending balance
balance Provision Others
reversal write-off
Provision for
4,021,792.83 730,724.64 4,752,517.47
bad debts
Total 4,021,792.83 730,724.64 4,752,517.47
None.
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
5) Other accounts receivable actually written off in the current period
□ Applicable Not applicable
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6) Other accounts receivable of the top five debtors in respect of the ending balances
Unit: RMB
Proportion to total Ending balance of
Name of unit Nature of payment Ending balance Aging ending balances of provision for bad
other receivables debts
Transactions with
No. 1 142,861,510.36 Within 1 year 40.74% 0.00
related parties
Transactions with
No. 2 68,968,536.00 Within 1 year 19.67% 0.00
related parties
Transactions with
No. 3 68,000,000.00 Within 1 year 19.39% 0.00
related parties
Transactions with
No. 4 11,940,509.87 Within 1 year 3.40% 0.00
related parties
Transactions with
No. 5 10,500,000.00 Within 1 year 2.99% 0.00
related parties
Total 302,270,556.23 86.19% 0.00
7) Included in other accounts receivables due to centralized management of funds
□ 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
4,148,631,889.88 4,148,631,889.88 3,981,563,889.88 3,981,563,889.88
subsidiaries
Investment in
associated
enterprises 18,263,630.50 12,433,655.05 5,829,975.45 18,272,947.90 12,433,655.05 5,839,292.85
and joint
ventures
Total 4,166,895,520.38 12,433,655.05 4,154,461,865.33 3,999,836,837.78 12,433,655.05 3,987,403,182.73
(1) Investment in subsidiaries
Unit: RMB
Changes in increase/decrease in the
provision for impairment
current period
Opening balance of
Ending
Beginning balance of
Provision for
Ending balance
Decrease in
impairment
investment
Investee balance (book provision
Others
Additional (book value)
value) for
investment impairment
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Shenzhen Topband Software
26,150,537.86 26,150,537.86
Technology Co., Ltd.
Shenzhen Topband Battery Co., Ltd. 628,362,316.54 628,362,316.54
Shenzhen Topband Automation
36,511,327.16 36,511,327.16
Technology Co., Ltd.
Chongqing Topband Industrial Co.,
211,708,311.75 211,708,311.75
Ltd.
Topband (Hong Kong) Co., Ltd. 528,408,500.00 528,408,500.00
Huizhou Topband Electrical
1,035,280,971.92 1,035,280,971.92
Technology Co., Ltd.
Ningbo Topband Intelligent Control
671,193,958.69 671,193,958.69
Co., Ltd.
Shenzhen Allied Control System Co.,
128,405,047.58 128,405,047.58
Ltd.
Shenzhen Meanstone Intelligent
10,000,000.00 10,000,000.00
Technology Co., Ltd.
TOPBANDINDIAPRIVATELIMITED 195,026,748.97 195,026,748.97
Shenzhen YAKO Automation
350,014,659.96 165,068,000.00 515,082,659.96
Technology Co., Ltd.
Shenzhen Topband Investment Co.,
99,314,771.98 99,314,771.98
Ltd.
Shenzhen Topband Supply Chain
5,000,000.00 5,000,000.00
Services Co., Ltd.
Shenzhen Senxuan Technology Co.,
8,035,325.03 2,000,000.00 10,035,325.03
Ltd.
Topband (Qingdao) Intelligent Control
30,000,000.00 30,000,000.00
Co., Ltd.
Shenzhen Topband Motor Co., Ltd. 12,151,412.44 12,151,412.44
Huizhou Chiding Technology Co., Ltd. 5,000,000.00 5,000,000.00
Shenzhen Jingfei Investment Co., Ltd. 1,000,000.00 1,000,000.00
Total 3,981,563,889.88 167,068,000.00 4,148,631,889.88
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(2) Investment in associated enterprises and joint ventures
Unit: RMB
Changes in increase/decrease in the current period
Profits
and losses
Opening Declaratio Ending
Beginning on Ending
balance of Decrease Adjustment to Other n of Provision balance of
Investment unit balance Additional investmen balance
provision for in other change distributio for Other provision for
(book value) investmen t (book value)
impairment investmen comprehensiv s in n for cash impairmen s impairment
t recognize
t e income equity dividends t
d under
or profits
equity
method
I. Joint venture
II. Associated enterprises
Shenzhen Daka
5,839,292.8 5,829,975.4
Optoelectronic -9,317.40
5 5
s Co., Ltd.
Tai'an
Yuchengxin
12,433,655.0 12,433,655.0
Power
5 5
Technology
Co., Ltd.
5,839,292.8 12,433,655.0 5,829,975.4 12,433,655.0
Subtotal -9,317.40
5 5 5 5
5,839,292.8 12,433,655.0 5,829,975.4 12,433,655.0
Total -9,317.40
5 5 5 5
Determination of net amount of recoverable amount at fair value less disposal expense
□ Applicable Not applicable
Determination of net amount of recoverable amount at present value of estimated future cash flows
□ Applicable Not applicable
Cause for significant discrepancy between abovementioned information and information used in the previous year's impairment test or external information
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None.
Cause for significant discrepancy between information used in the previous year's impairment test of the Company and actual information in current year
None.
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(3) Other descriptions
None.
4. Operating income and operating cost
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 2,335,186,489.30 1,887,021,091.59 2,168,888,404.03 1,828,400,603.03
Other business 73,149,986.55 63,317,817.95 83,107,729.82 78,139,272.60
Total 2,408,336,475.85 1,950,338,909.54 2,251,996,133.85 1,906,539,875.63
Breakdown of operating incomes and operating costs:
□ Applicable Not applicable
Information related to performance obligations:
None.
Information related to the transaction price allocated to the remaining performance obligations:
None.
5. Investment income
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Long-term equity investment income
-9,317.40 -40,895.18
accounted by the cost method
Investment income from disposal of
507,252.49
tradable financial assets
Interest income from other debt
-182,700.00
investments in holding period
Profits and losses of foreign exchange
155,182.00 377,800.00
derivatives after settlement
Total 470,417.09 336,904.82
6. Others
None.
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XX. Supplementary Information
1. Schedule of current non-recurring profit and loss
Applicable □ Not applicable
Unit: RMB
Items Amount Description
Profits and losses on disposal of non-current assets -3,096,619.05
Government grants credited to income statement (except for government grants
that are closely related to the normal operation of the Company, comply with
15,418,390.00
national policies and regulations, enjoy in accordance with determined criteria, and
have a continuous impact on the profit and loss of the Company)
Profit/loss arising from changes in fair value of financial assets and liabilities held
by non-financial enterprises, and profits and losses on disposal of financial assets
2,159,263.40
and liabilities, except for the effective hedging business related to the normal
operation of the Company,
Reversal of impairment of receivables individually tested for impairment 3,369,846.80
Other non-operating income and expenses other than those mentioned above 776,803.05
Minus: amount affected by income tax 2,854,659.99
Amount affected by minority shareholders' equity (after tax) 101,285.29
Total 15,671,738.92 --
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 on average
Profits of the reporting period Basic earnings per share Diluted earnings per share
equity
(RMB/share) (RMB/share)
Net profit attributable to the
ordinary shareholders of the 6.10% 0.31 0.31
Company
Net profit attributable to the
ordinary shareholders of the
5.85% 0.30 0.30
Company after deduction of non-
recurring profit and loss
221
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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 Chinese Accounting Standards
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
Overseas Accounting Standards and Chinese Accounting Standards at the same time
□ Applicable Not applicable
(3) Reasons for differences in accounting data under domestic and overseas 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
None.
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Section XI Other Reported Data
I. Other Major Social Security Issues
Whether the listed company and its subsidiaries have other major social security issues
□ Yes □ No Not applicable
Whether any administrative punishment was imposed during the reporting period
□ Yes □ No Not applicable
II. Registration form of reception, investigation, communication, interview and other activities
during the reporting period
Applicable □ Not applicable
Main contents
Location Type of
Time of Method of of interview Basic Information index for
of receptio Reception object
reception reception and materials investigation
reception n object
provided
Harvest Fund, Kaiyuan Securities, Aegon-Industrial Learn about
Conferen Fund, J.P. Morgan Asset Management, Bopu Fund, the operation
2024/1/9
ce room Field Organiz China Asset Management, China Everwin Asset, CICC of the
2024/1/10 http://www.cninfo.com.cn
of the survey ations Asset Management, China Securities, PICC Pension, Company; no
2024/1/11
Company Horizon Fund, Future Vessel Capital, Rongtong Fund, information
and Chongyang Investment provided.
Learn about
Conferen the operation
HSBC Jintrust Fund Management, TF Securities,
2024/2/22 ce room Field Organiz of the
Bosera Funds, Changjiang Securities, FORTUNE & http://www.cninfo.com.cn
2024/2/23 of the survey ations Company; no
Royal Asset, Huamei Investment
Company information
provided.
TF Securities, Regents Capital, Guotai Asset
Management, Western Securities, Taiping Asset
Management, Shengang Securities, Invesco Great Wall,
Value Partners Limited, China Merchants Securities,
Shanghai Everbest Investment Managers, Jianshun
Investment, Loyal Valley Capital, Ruiyi Investment,
Chengluo Investment, Ever Fortune, Hwabao WP
Fund, Xingyin Fund, Great Abundance Year Asset,
Zhengyuan Investment, Truvalue Asset Management, Learn about
Conferen Telephon Yuanlesheng Assets, Springs Capital, Zhongtai the operation
ce room e Organiz Securities, Bosera Fund Management, Union Asset, of the
2024/3/27 http://www.cninfo.com.cn
of the communi ations Panjing Investment, Bin Yuan Capital, Fortune Capital, Company; no
Company cation Hong Ding Wealth Management, Beijing Ding information
Investment, Century Securities, Changjiang Securities, provided.
Harvest Fund, BOC International, Zhihe Assets,
Kaiyuan Securities, Gowin AMC, BOC Investment
Management, Tourmaline Asset Management, Boyan
Ruixuan Venture Capital, Fengpei CAPITAL LLC,
China Post Life Insurance, New Thinking Investment,
Industrial Securities, Pictet Asset Management,
Amundi BOC Wealth Management, Congrong Fund,
Shinian Investment, Beijing Eastern Smart Rock Asset
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Management, China International Capital, Jumi Capital,
Haoyuan Investment, Western Leadbank FMC,
Zhonghai Fund, Qingdao Xingyuan Investment, Pacific
Securities, YuanCheng Private Fund, CIB Wealth
Management, Long Hang Assets, Beijing Zhenke Fund,
DIB Asset Management, Zhejiang Rice Bank Asset
Management, Zhongrong International Trust, Honghua
Capital, CITIC Prudential Fund, Purekind Fund
Learn about
On-line
Conferen the operation
communi
ce room of the
2024/4/12 cation on Others On-line investor http://www.cninfo.com.cn
of the Company; no
network
Company information
platforms
provided.
TF Securities, China Securities, Invesco Great Wall,
Huajin Securities, Shenwan Hongyuan Securities,
Rabbit Fund, Shifeng Asset, China Post Life Insurance,
Taikang Funds, China Merchants Securities,
Huachuang Securities, Macrotrends Fund, Regents
Capital, China International Capital, CPIC Fund,
Caitong Securities, Zhongtai Securities, Boyan Ruixuan
Venture Capital, Perseverance Asset Management,
Soochou Asset Management, Guotai Asset
Management, Xunyuan Asset, HSBC Jintrust Fund
Management, Wanjia Asset, Loyal Valley Capital,
Yude Capital, New Thinking, New China Fund,
Dongxing Asset Management, Xingyuan Investment,
SINO LIFE ASSET, CIB Wealth Management,
Tianlang Assets Management, Caixin Economics,
CITIC Securities AM, China Universal Asset
Management, Pacific Securities, Founder Securities
Asset Management, Beijing Longrising Asset
Management, Rongtong Fund, CPE Fund, Generali
China, Union Asset, Heng An Life, Yinhua Fund,
PICTET, Xingheng Fund, Yingda Insurance, Bosera
Fund Management, Century Securities, Rongtong Fund,
Shanxi Securities, Shanghai Life, BOC Investment
Learn about
Management, Heyong Investment, Gemboom
Conferen Telephon the operation
Investment, Xuanyuan Investment, Knight Investment,
ce room e Organiz of the
2024/4/23 Mingyu Assets, Truvalue Asset Management, http://www.cninfo.com.cn
of the communi ations Company; no
HENGJIAN INTERNATIONAL INVESTMENT
Company cation information
HOLDING (HONG KONG), Q.M. Fortune, Hanxiang
provided.
Investment, Hezhong Yisheng, Shenzhen Hong Ding
Wealth Management, Soochow Securities, Changsheng
Fund, Ren Bridge Fund, Fortune Capital, BNB Wealth
Management, Jt Asset Management, Milestone Assets,
Qianhai Jumpstart, Southern Asset Management, G
Fund, Orient Securities, BOC Wealth Management,
Rongtong Fund, Harvest Fund, New China Asset,
Chengluo Investment, Asia-Pacific P&C, HFT
Investment Management, CITIC Prudential Fund,
Intewise Capital, China Life AMP Asset Management,
Orient Securities, Lead Wolf Assets, Current VC,
Zhengyuan Investment, Lead Wolf Assets,
Guanghuiyuan Assets, China Securities, Truvalue Asset
Management, Huatai-Pinebridge Fund Management,
PH Capital, Guotai Junan Securities, Zinggo Fund,
Jinghe Assets, Ping An Asset Management, Chuanghua
Investment, Penghua Fund, Horizon Fund, Shanghai
Chongyun, Changjiang Pension, BNB Wealth
Management, CCB Principal Asset Management, PICC
Asset Management, Changan Fund Management,
Jianshun Investment, Ren Bridge Fund, Jianghai
Securities, dealers of Sealand Securities, Heyong
Investment, Rosefinch Fund
224
Full Text of the Semi-annual Report 2024 of Shenzhen Topband Co., Ltd.
Learn about
Conferen the operation
Tianhong Asset Management, TF Securities,
2024/4/30 ce room Field Organiz of the
Changjiang Pension, Changjiang Securities, Zhonggeng http://www.cninfo.com.cn
2024/5/6 of the survey ations Company; no
Fund
Company information
provided.
Learn about
Origin Asset Management, Jinding Capital, Regent
2024/5/27 Conferen the operation
Capital, Mondrian, Jefferies Securities, CICC
2024/5/28 ce room Field Organiz of the
Securities, Bosera Fund Management, Current VC, http://www.cninfo.com.cn
2024/5/29 of the survey ations Company; no
Hourunde Fund, GF Fund Management, China
2024/5/30 Company information
Securities,
provided.
TF Securities, Harvest Fund, CITIC Securities, China Learn about
Conferen Post AMC, Yingda Securities, Beijing Ding the operation
ce room Field Organiz Investment, BNB Wealth Management, Guotai Junan of the
2024/6/19 http://www.cninfo.com.cn
of the survey ations Assets Management, Truvalue Asset Management, Company; no
Company China Universal Asset Management, Baichuan Asset information
Management provided.
III. Fund transfers between the Company & controlling shareholders and related parties
□ Applicable Not applicable
Shenzhen Topband Co., Ltd.
July 31, 2024
225
