Full text of Semiannual Report 2021 of Shenzhen Topband Co., Ltd.
Shenzhen Topband Co., Ltd.
Semiannual Report 2021
Topband investor relations applet
July 2021
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Full text of Semiannual Report 2021 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 Semiannual Report is true,
accurate and complete, and free from any false from any false record, misleading representation or
material omission, and are individually and jointly responsible for the content set out therein.
Wu Yongqiang, the principal of the Company, Xiang Wei, accounting head, and Xiang Wei,
accounting department head (the person in charge of accounting department) hereby certify that the
financial report in the Semiannual Report is true, accurate and complete.
All directors have attended the Board meeting at which the Report was scrutinized.
If the Report involves forward-looking statements such as future plans, they do not constitute
the Company's substantive commitments to investors, and investors and relevant persons shall
maintain sufficient risk awareness and understand the differences between plans, forecasts and
commitments.
There is no significant risk affecting the financial condition and sustainable profitability of the
Company, but there may be risks of declining market demand, increased competition in the industry,
raw material price fluctuations, changes in export tax rebate policy and foreign exchange rate
fluctuations due to the macro environment home and abroad. For detailed risk warnings, please
refer to the “Possible Risk Factors” in Section III of the Report and investors are advised to pay
attention to investment risks.
The Company plans not to distribute cash dividends or bonus shares or increase share capital
with the provident fund.
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Contents
Section I Important Notes, Contents and Definitions .......................................................................... 2
Section II Company Profile and Main Financial Indicators................................................................. 6
Section III Discussion and Analysis of the Management................................................................... 10
Section IV Corporate Governance ..................................................................................................... 37
Section V Environmental and Social Responsibility ......................................................................... 39
Section VI Important Matters............................................................................................................. 40
Section VII Share Change and Shareholders ..................................................................................... 49
Section VIII Information on Preferred Shares ................................................................................... 58
Section IX Relevant Information of Bonds ........................................................................................ 59
Section X Financial Report ................................................................................................................ 60
Section XI Other Data Submitted .................................................................................................... 225
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Directory of documents for future reference
I. Accounting statements containing the signatures and seals of the legal representative, the financial
head and the accounting department head.
II. The originals of all the company documents publicly disclosed in newspapers designated by the
CSRC during the reporting period and the original manuscripts of announcements.
III. The original of the Semiannual Report 2021 indicating 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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Definitions
Term Definitions
Company, the Company, Topband shares Refers to Shenzhen Topband Co., Ltd.
Yuan, 10,000 yuan Refers to Yuan, RMB 10,000
CSRC Refers to China Securities Regulatory Commission
Exchange Refers to Shenzhen Stock Exchange
Reporting period Refers to January 1, 2021 - June 30, 2021
Articles of Association Refers to Articles of Association of Shenzhen Topband Co., Ltd.
ORVIBO Refers to Shenzhen ORVIBO Technology Co., Ltd.
Chongqing Yiyuan Refers to Chongqing Topband Industrial Co., Ltd.
Meanstone Intelligent Refers to Shenzhen Meanstone Intelligent Technology Co., Ltd.
Topband Lithium Battery Refers to Shenzhen Topband Lithium Battery Co., Ltd.
Ninghui Lithium Battery Refers to Taixing Ninghui Lithium Battery Co., Ltd.
Huizhou Topband Refers to Huizhou Topband Electrical Technology Co., Ltd.
ICT Refers to Information Communications Technology
T-SMART Refers to Topband One-Stop Smart Home Solution
AI Refers to Artificial Intelligence
BLDC Refers to Brushless DC Motor
CELL Refers to Lithium battery monomer
BMS Refers to Battery Management System
PACK Refers to The packaging, encapsulation and assembly of batteries
IPD Refers to Integrated Product Development
APP Refers to An application program
PaaS Refers to Platform-as-a-Service
SaaS Refers to Software-as-a-Service
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Section II Company Profile and Main Financial Indicators
I. Company information
Stock abbreviation Topband Stock code 002139
Listed stock exchange Shenzhen Stock Exchange
Chinese name of the Company 深圳拓邦股份有限公司
Chinese abbreviation of the
拓邦股份
Company (if any)
Name of the Company in
Shenzhen Topband Co.,Ltd
foreign 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 Yang Qiaoqiao
Topband Industrial Park, Keji Second Road, Shiyan Topband Industrial Park, Keji Second Road, Shiyan
Address
Subdistrict, Baoan District, Shenzhen Subdistrict, Baoan District, Shenzhen
Tel 0755-26957035 0755-26957035
Fax 0755-26957440 0755-26957440
Email wenzh@topband.com.cn yangqq@topband.com.cn
III. Other situations
1. Company's contact information
Were the Company's registered address, office address and postal code, website and e-mail address changed
during the reporting period
□ applicable √ not applicable
The Company's registered address, office address and postal code, website and e-mail address remained
unchanged during the reporting period. For details, please refer to the Annual Report 2020.
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2. Information disclosure and storage place
Was the location of information disclosure and storage changed during the reporting period
□ applicable √ not applicable
The name of the information disclosure newspaper selected by the Company, and the website designated by the
CSRC that publishes the semiannual report. There was no change in the reporting period of the Company's
semiannual report. For details, please refer to the Annual Report 2020.
IV. Key accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes √ No
Corresponding period of
Current reporting period Y-o-y increase /decrease
last year
Operating income (yuan) 3,644,045,612.40 1,997,427,900.70 82.44%
Net profit attributable to shareholders of
428,185,704.03 208,913,599.16 104.96%
listed companies (yuan)
Net profit attributable to shareholders of
listed company after deducting 319,714,520.44 133,416,997.04 139.64%
non-recurring profit and loss (yuan)
Net cash flow from operating activities
-225,705,738.12 119,136,253.19 -289.45%
(yuan)
Basic earnings per share (yuan / share) 0.38 0.20 90.00%
Diluted earnings per share (yuan / share) 0.37 0.19 94.74%
Weighted average return on net assets 11.13% 8.01% 3.12%
Increase or decrease at the end of
At the end of the
End of last year the reporting period over the
reporting period
same period of last year
Total assets (yuan) 8,619,107,470.07 6,808,735,037.28 26.59%
Net assets attributable to shareholders of
4,923,684,343.80 3,463,681,980.54 42.15%
listed companies (yuan)
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V. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP simultaneously
□ applicable √ not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP during the reporting
period.
2. Differences in net profit and net assets between financial reports disclosed in accordance with foreign
accounting standards and those disclosed in accordance with PRC GAAP simultaneously
□ applicable √ not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with foreign
accounting standards and those disclosed in accordance with PRC GAAP during the reporting period.
VI. Items and amount of non-recurring profit and loss
√ applicable □ not applicable
Unit: Yuan
Items Amount Description
Profit and loss on disposal of non-current assets (including the write-off portion of the
-465,795.21
provision for asset impairment)
Government subsidies recognized in the current profits and losses (except those closely
related to the business of the enterprise and enjoyed in a fixed or quantitative amount 6,479,445.63
according to the national uniform standard)
Profit and loss from changes in fair value of trading financial assets, derivative financial
assets, trading financial liabilities and derivative financial liabilities, and investment income
from disposal of trading financial assets, derivative financial assets, trading financial 122,379,119.84
liabilities, derivative financial liabilities and other creditor's rights investments, except for
effective hedging business related to the normal business of the Company
Other non-operating income and expenses other than those mentioned above -1,672,760.04
Other profit and loss items that meet the definition of non-recurring profit and loss 1,200,855.83 Financing income
Less: amount affected by income tax 19,200,380.11
Amount affected by minority shareholder’s interest (after tax) 249,302.35
Total 108,471,183.59 --
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For the items of non-recurring profit and loss defined by the Company in accordance with the definition of
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to Public -
Non-Recurring Profits and Losses, the reasons why the items of non-recurring profit and loss listed as
non-recurring in Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities
to Public - Non-Recurring Profits and Losses to be defined as recurring profit and loss should be explained.
□ applicable √ not applicable
During the reporting period, the items of non-recurring profit and loss defined and listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Securities to Public - Non-Recurring
Profits and Losses are not defined as the recurring profit and loss.
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Section III Discussion and Analysis of the Management
I. Main businesses during the reporting period
(1) Major business scope
The Company mainly engages in R&D, production and sales of intelligent control system solutions, i.e.,
providing diversified customized solutions for four industries of home appliances, tools, industry and new energy,
with the “three electrics and one network” technology of electric control, motor, battery and IoT platform as its
core. The Company is a global leading provider of intelligent control technology, a pioneer of intelligent control
solutions for the home appliances and tool industries, and an innovator in intelligent control solutions for the
industry and lithium battery industry.
Intelligent control business Home Lithium
application in "four appliance Tool sector Industry sector battery
industries" sector industry
Electric control Motor technology Battery
Core technology layout of technology technology
"three electrics and one
network"
IoT platform
1. Core technology of the Company: “three electrics and one network”: electric control, motor, battery
technology and IoT platform.
1.1 Electric control technology. The electric control technology is a technology to achieve intelligent
control with the microcomputer as the core, including: sensing technology, power electronics, signal processing
technology, communication technology, interactive technology, power and energy conversion technology,
electromagnetic compatibility and so on. The Company has established hundreds of electric control technology
platforms, which completely cover the demand range of products in four major industries.
1.2 Motor technology. The motor technology is a technology that converts electrical energy into kinetic
energy. The Company has built dozens of advanced motor technology platforms around various types of motors
such as brushless DC motors (BLDC), stepper motors, and servo motors. Among them, the Company takes the
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lead in the tool motor and motion control industries. Motion control refers to the real-time control of the position,
speed and direction of mechanical moving parts, so that such mechanical moving parts move in accordance with
the expected trajectory and the specified motion parameters. The motion control system is generally composed of
man-machine interaction interface, controller, driver, motor and other components, which are the core components
of intelligent manufacturing equipment, and is the premise and basis for the realization of intelligent
manufacturing.
1.3 Battery technology. The battery technology is a technology for energy storage and management. The
Company has complete design, development customization and production capacities from cell technology
(CELL), battery management technology (BMS) to battery pack (PACK).
1.4 IoT platform. The IoT platform is a technology that integrates perception layer, connection layer and
application layer, mainly including connection management, device management and application. The Company
has formed a complete technical capability from IoT module, intelligent terminal to APP, and PaaS IoT platform,
and has developed solutions for more than ten business scenarios.
2. Main products of the Company: customized system solutions to “home appliances, tools, and
industry and lithium battery” industries
2.1 Intelligent control of home appliances
The Company provides brand customers in the home appliance industry with customized product concepts,
design, development, manufacturing and delivery services, including the master control, power control, motor
drive and control and display control of home appliances.
2.2 Tool intelligent control
The tool industry mainly includes electric tools, garden tools and other professional tools. The Company
provides its customers with customized product concepts, design, development, manufacturing and delivery
services. The business scope covers electronic controls, motors and batteries, and product forms include
controllers, modules and complete machines.
2.3 Lithium battery and its intelligent control
The Company mainly provides products and system solutions, including battery cells, battery management
system (BMS), battery packs and charging cabinets for communication base station energy storage, home energy
storage, power batteries for two- or three- wheeled vehicles and other special vehicles, mobile charging power and
IoT.
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2.4 Industrial intelligent control
In the industrial control industry, the Company’s main business includes research and development,
production, sales of step and servo drives and control products with focus on special industrial intelligent control
solutions. The Company mainly provides controllers, drivers and motors for downstream automation equipment
customers, which are widely used in 3C electronics, robotics, medical equipment, semiconductor equipment,
textile machinery, packaging machinery, etc. The Company is committed to helping automation equipment
manufacturers improve equipment design performance, reduce equipment manufacturing costs, and speed up the
development of new equipment.
(2) Industry development prospect, competition situation and industry status
The future will be an intelligent society, and intelligentization will be a long-term, lasting and far-reaching
change having a wide influence, and will deeply affect modern life, and change product forms at the same time.
Intelligent control is the core technology of the future intelligent society and the brain and nervous system of
intelligent equipment, and will become the necessity of the intelligent society. We think that the intelligent control
industry is a big industry without a ceiling and the next gold mine of the intelligent society. There are currently
three trends of shift, concentration and growth in the industry:
1. There is an obvious trend that international market is shifting to China. The shift is accelerated by
industrial clusters and the advantages of the engineer bonus in China as products become increasingly complex,
individualized and differentiated, requiring fast R&D and product delivery, as well as reliable and consistent
quality.
2. Domestic shares are concentrated in the top enterprises. In the past three years, the growth rate and order
concentration of leading enterprises have been better than those of other peers. With the development trend of
"desinicization" under the trade war, leading enterprises with global operation ability have taken the lead in global
layout and accelerated the secondary concentration of the industry;
3. New technology and application development has created space for growth. The expansion of industry
applications and the upgrades of technology have accelerated the process of human intelligence, and new
technologies such as 5G, IoT, and AI are driving the development of intelligent society, providing the intelligent
control industry a historic opportunity.
As a global leading provider of intelligent control technology, the Company focuses on the field of intelligent
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control, adheres to the concept of value creation, and constantly strengthens its technical capabilities, and has
formed a comprehensive technology system of “three electrics and one network” for four industries of home
appliances, tools, lithium battery application and industry, providing intelligent control solutions for downstream
machine manufacturers. Intelligent controllers are technology-intensive products including algorithm and
hardware. With the continuous and in-depth development of intelligentization, the rapid iteration of technology
will improve intelligent controller ODM (original design manufacturer) customization demands, and brand
owners' requirements for technological innovation ability of suppliers will become increasingly higher. Relying on
25 years of continued R&D investment, the Company has core competitiveness in terms of technology and
product innovation, and it has become a leader in intelligent control solutions for the home appliance and tool
industries, and an innovator in the industry and lithium battery application industry.
1. Home appliance industry
The Company is the pioneer and leader in the home appliance control segment in China. In recent years, the
global home appliances show a trend of accelerated concentration of brands, and the “head effect” is more and
more obvious; on the other hand, a trend of increasingly mature of the IoT technology, accelerated infrastructure
construction, and accelerated “intelligent” penetration rate can be found. As the total growth of the global home
appliance market is slowing down, in order to gain stronger market competitiveness, major home appliance brand
owners are putting forward higher and more comprehensive requirements for upstream solution providers, such as
differentiated and innovative solutions, high-quality and low-cost products, and stable and reliable delivery, etc. In
addition, international big customers require upstream with multinational localization service capabilities because
of increased international trade protectionism.
In order to seize the opportunities mentioned above, the Company has adopted a multi-dimensional
structured change strategy for customer structure, product structure, cost structure and operation
structure to achieve sustained and stable high growth in performance.
1.1 Customer structure: The Company has made some adjustments and optimization on the basis of the
“spindle shaped” customer structure, increased the development of global integrated customers (big customers)
and actively cultivated innovative customers (sci-tech innovation customers) on the basis of deep cultivation of
top customers (strategic customers) in segments.
1.2 Product structure: The Company has increased its investment in product platform and IoT platform,
adopted the strategy of “technology platform + product platform + customized solutions”, systematically sorted
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out hundreds of electric control technology platforms and home appliance product platforms, and increased the
efforts of platform reuse to maintain the agility and efficiency of innovation while reducing the marginal cost of
customized R&D. The Company can now quickly provide customers with customized services in different
application scenarios, gradually playing the pooling effect of the platform, while ensuring the innovation of the
solutions. In addition, the IoT platform of the Company can offer customers with one-stop, scenario-based and
customizable services, and has now accumulated nearly 100 projects, some of which have already entered the
mass production stage.
1.3 Cost structure: After the implementation of centralized purchase, the Company has strengthened the
control of key categories and general categories and given full play to the advantages of batch purchase. At the
same time, on the basis of ensuring quality and delivery reliability, the Company increased the efforts of cost
reduction of solution design and material procurement by using batch production to ensure that customers are
provided with high-quality and low-cost products to enhance the overall competitiveness in the customer end.
1.4 Operation structure: In order to meet the demand for localized and agile services for internationalized
big customers, the Company has accelerated the construction of domestic operation bases in Yangtze River Delta
(Ningbo) and Vietnam (Dong Nai), and sped up the introduction of customers and mass production in India
(Pune).
2. Tool industry
The tool industry mainly includes electric tools, gardening tools and other professional tools. The user
market is mainly concentrated in Europe, the United States and other developed countries and regions, with high
brand concentration and high requirements for quality. In recent years, the tool industry has ushered in the
opportunity of “oil to electricity” and “cordless” technology upgrading. Many products powered by fuel before
have been gradually powered by lithium batteries instead. The battery, electric control and electric of the products
motor also need to be upgraded. At the same time, some domestic traditional OEMs start to conduct industrial
upgrading and branding operations, and gradually show up prominently. In addition, since the tools are mainly
exported to developed regions such as Europe and the United States, and they are greatly affected by trade policies
and tariffs, the Company is also required to have overseas delivery capabilities.
As the leader of the subdivided tool control industry in China, the Company has the unique competitive
advantage of "electric control + motor + battery", playing a unique value in promoting the development of the tool
industry. In terms of customer strategy, the Company adopts the strategy of "international big customers as the
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main, regional customers as a supplement". Customers are mainly divided into American, European, Japanese and
domestic customers. At present, the Company has cooperated with most leading customers in the industry; in
terms of the industrial chain, the Company has a unique technological combination of "electric control + motor +
battery + Internet of Things platform", provides diversified services from "controller + motor + battery pack"
components to "module" and "whole machine", and continuously introduces products and solutions with high
added value to meet the rapid innovation needs of the industry; in terms of product structure, in the mode of
"technology platform + product platform + customized solutions", the Company has focused on increasing the
development and promotion of "oil to electricity" and "cordless" solutions, and formed a deep cooperation
relationship with customers; in terms of regional operation, the Company has accelerated the delivery of overseas
bases such as Vietnam and India, and actively cooperated with the needs of some overseas customers for
international and domestic delivery.
3. Lithium battery application industry
In the context of global energy revolution, new energy represented by lithium battery is rapidly replacing
traditional fossil energy and lead-acid batteries, etc. The lithium battery industry is divided into general and
specialized segments. The general segment mainly refers to new energy vehicle batteries, standard batteries, etc.
Due to continuous progress of technology, increased competition and economies of scale, the cost of lithium
batteries in the general segment continues to decrease, with serious homogenization and fierce price competition.
The specialized segment is for a large number of customized batteries for various industries, such as
communications, power conversion, IoT, special vehicles, recreational vehicles, home storage and ships. Although
the single market size of the specialized lithium battery is relatively small, but the added value is also relatively
high. The prospect of lithium battery for replacing the original fuel power or lead-acid battery is very broad, and
opportunities for large-scale applications in many market segments are produced.
The Company focuses on the specialized segment of lithium battery, with “energy storage + small-scale
power” as the main development direction, and achieves sustained rapid development in a number of market
segments relying on safe and innovative technology and products. In the field of communications, with the
construction of 5G and other “new infrastructure” information infrastructures, a large number of equipment that
originally achieve energy storage for electricity with lead-acid batteries need to be provided with lithium batteries
instead; in the field of electricity, due to the high volatility of PV wind power and other new energy generation,
new energy power stations are required to be provided with a certain proportion of lithium battery energy storage,
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bringing opportunities for market growth of energy storage on the power generation side; in the field of
individuals and families, as a portable and environmentally friendly source of energy, lithium battery offers
convenient and intelligent experience for home energy management and use, low-speed vehicle power and
consumer electronics, and its scope of application is gradually expanded. In terms of technology and products,
based on the comprehensive advantages of "battery + electronic control + Internet of Things platform", the
Company has the ability of R&D, manufacturing and packing of multiple types of cells, and provides solutions
from cells and the battery management system (BMS) to the Internet of Things system.
4. Industrial control industry
In recent years, the efforts of policy support and industrial support for the intelligent manufacturing
equipment industry have been further strengthened in China, the domestic substitution has accelerated, the
capacity of domestic industrial control market has increased significantly, and the industry maintains the
momentum of sound development. At present, there is still a large space for improving the overall degree of
localization of industrial and automation equipment, and there are medium- and long-term opportunities to
develop domestic substitution for core control components. Compared to the giant companies of foreign industrial
control, there are absolute advantages for the localization solution in terms of cost. At present, the breakthroughs
of core technology and product reliability verification have gradually matured, and the domestic substitution trend
is irreversible and has great prospects.
The Company has a leading domestic market share in the field of stepper motor industrial control and is in
the first echelon in the field of servo motor industrial control. The Company now has more than 3,000 automation
equipment manufacturer customers, with whom it has established and maintained continuous and stable
cooperative relationships directly. The Company has advanced technology in servo motor control solution, and
has made the products pass three iterations to achieve large-scale applications. The Company actively promotes
servo products based on existing customers, and continues to develop 3C, semiconductor equipment, textile
machinery, medical devices and other segments.
II. Core competitiveness analysis
1. Platform-based technological innovation capability. With the technology as DNA and the innovation as the
gene of development, the Company has formed a unique innovation leading capability. The Company has
accumulated and formed the most complete technology platform in the industry, with capabilities for in-depth
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understanding of various control mechanisms, independent implementation and industry leading, covering all
aspects of core technologies of intelligent control integration solutions, such as: intelligent control algorithms,
motor electric control, sensing, man-machine interaction, image recognition, power technology, Android
technology, temperature control technology, heating, cooling, etc. The Company has the most abundant product
lines in its industry, each of which has accumulated and formed a complete, mass-production-proven product
platform covering white home appliances, small home appliances, power tools, gardening tools, intelligent
hardware, smart campus, consumer electronics and other fields, and can quickly provide customers with the best
and most guaranteed customized solutions. In addition, the Company has a unique overall solution capacity of
“intelligent controller + high efficiency motor + lithium battery” in industry, further strengthening the capacity of
the Company to lead the technology.
2. Partnership-based customer service capability. The Company takes “agile innovation partner” as its
technology value proposition, and develops partnership with customers with the development concept of value
co-creation and value co-win. Relying on the advantage of leading technology capacity and based on the deep
insight of customer needs, the Company has formed the partnership-based customer service capacity with the
fastest response and the most powerful value creation, established in-depth cooperation partnership with domestic
and foreign excellent brand customers in various business fields, and formed a good reputation and brand
reputation in the industry. The partnership-based customer service capacity is widely recognized and praised by
customers.
3. Systematic rapid response capability. With the development of ICT technology and the accelerated speed
of global innovation iteration, the services provided by the Company to customers increasingly need to be more
agile in terms of operation. Based on a deep understanding of the intelligent control business, the Company has
created a strong platform system from the implementation of IPD concept of R&D and design process, ISC reform
of core customers of supply chain system, laboratory and quality assurance system, and intelligent manufacturing
platform system, internalizing the strengths and capabilities of the Company into agile capabilities of operation,
thus further strengthening the differentiated capabilities of rapid innovation and response, and guarantee
sustainable and high-speed growth of the Company.
III. Main business analysis
Refer to "I. Main businesses during the reporting period" for the main business contents of the Company. The
analysis of the operation in the reporting period is as follows:
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(1) Semiannual operating performance and core operating indicators in 2021
The year 2021 is the beginning of the 14th five-year plan. Scientific and technological innovation, peak
carbon dioxide emissions and carbon neutralization will be the two important factors in the next stage of
economic growth. The Company's intelligent control and lithium battery application business complied with
national economic development and achieved good growth during the reporting period. In the first half of 2021,
the epidemic at home and abroad still recurred, sometimes had a local rebound, and was not fundamentally
controlled yet. In the face of the complex and changeable business environment such as the rise in the price of raw
materials and the shortage of goods under the influence of the epidemic and inflation, the Company's management
actively responded, and seized the opportunity of intelligent upgrading and demand concentration enhancement
depending on its product power, technology platform innovation power, ISC integrated supply chain and strong
systematic management ability accumulated for many years. In the face of risks and difficulties, we chose to face
them together with our customers and overcome difficulties together with our upstream and downstream partners,
and obtained the trust of downstream customers, the opportunity of incremental orders, and the supply support of
upstream suppliers. In the first half of 2021, with the efforts of all Topband people, the performance achieved
relatively high-speed growth, and various business indicators continued to be improved. During the reporting
period, the Company realized an operating income of 3.644 billion yuan with a year-on-year growth of 82.44%, a
net profit attributable to the listed company in the amount of 428 million yuan with a year-on-year growth of
104.96%, and a net profit attributable to the shareholders of the listed company in the amount of 320 million yuan
after deduction of non-recurring profit and loss with a year-on-year growth of 139.64%.
During the semiannual period of 2021, focusing on the business objectives set at the beginning of the
year, the Company has made breakthroughs in the following aspects:
1. Demand side: With the accelerated arrival of the intelligent society, the industry development has entered
the fast lane and will be a long-term process, the application scenarios of intelligent controllers continue to expand,
and the downstream demand still maintains a high degree of prosperity. The competitive advantage of China’s
supply chain in the world has been revealed, and overseas production capacity has continued to transfer to China
and Southeast Asia. At the same time, the industry is centralizing to the top. As a leading enterprise of intelligent
controller, the Company’s industry position and market share are increasing year by year. In the first half of 2021,
the Company's operating income increased by 82.44% on a year-on-year basis. After deduction of the low base
during the epidemic in the first half of last year, the compound growth rate of income in the past three years
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reached 44.10%.
In the first half of 2021, the four major industries achieved rapid growth on a year-on-year basis, and the
advantageous sector still maintained a strong growth trend. The operating income of home appliances accounted
for 45% of operating income, with a year-on-year growth rate of 90%, and the proportion of innovative intelligent
devices increased rapidly; the operating income of the tool sector accounted for 37% of operating income, which
doubled year-on-year. The leading position and advantages in the industry have been further reflected.
2. Supply side: In the first half of 2021, the factors related to the shortage of raw materials and the
continuous rise in prices become more severe from both year-on-year and month-on-month perspectives. The
Company's management arranged in advance, responded actively, and put ensuring supply safety in the primary
position of operation. We ensured the timely delivery of customers’ orders by actively communicating with
customers about demand plans, preparing goods in advance, substituting domestic goods for imported ones or
otherwise, and hence reduced the impact of the rise in price and the shortage of goods on operating profits in the
reporting period.
During the reporting period, adversely affected by the appreciation of the RMB exchange rate and the sharp
rise in the price of upstream raw materials, the average gross profit rate of the Company was 24.11% with a slight
year-on-year increase. The Company's anti-risk ability and management ability have been rapidly improved.
3. Core competitiveness: The Company adheres to the mission of creating value for customers and society,
always takes "technological innovation" as its engine, continuously deepens the technological leading ability and
constructs a new driving force for enterprise development. During the reporting period, the total R&D investment
was 234 million yuan with a year-on-year growth of 40.12%, accounting for 4.74% of the Company's net assets
attributable to the parent company and 6.41% of the operating income. While increasing investment in
technological innovation, the Company has strengthened the protection of intellectual property rights and
technological achievements. By the end of the reporting period, the Company and its subsidiaries had applied for
1,947 patents, including 720 invention patents, 1,002 utility models, 163 appearance designs, 12 foreign patents
and 50 PCTs; the Company and its subsidiaries had applied for 73 software copyrights and made 294 trademark
applications in total. During the reporting period, the proportion of income from innovative products and high
value-added products increased steadily, and the product structure and customer structure continued to be
optimized.
4. Progress of core strategy: In the first half of 2021, the Company's five core strategies were promoted
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Full text of Semiannual Report 2021 of Shenzhen Topband Co., Ltd.
simultaneously. The number and share of top customers increased steadily, and the income increased rapidly on a
year-on-year basis; the Company's technological innovation and leading ability continued to deepen, and the
proportion of income from innovative products and high value-added products increased steadily during the
reporting period; the measures for increasing efficiency and reducing cost were continuously promoted, and the
organization and the process system were further improved to provide strong support and guarantee for the rapid
development of business.
5. Globalization layout and layout of main production capacity: The production capacity was improved
steadily, with rapidly boosting globalization layout, ensuring the fast growth of the business.
We are an international company with customers all over the world. Focus on the strategy of “customer
intimacy”, we serve customers closely and improve the service responsiveness and the service quality further.
According to the needs of business development, more than ten regional operation centers, manufacturing centers,
R&D centers and representative offices have been established in many places around the world, including the
United States, Japan, Germany, India and Vietnam. The globalization layout has been promoted rapidly, and
overseas operation centers such as those in Eastern Europe and North America have been actively prepared to
accelerate the globalization layout and realize agile delivery. The current main production capacity layout of the
Company is as follows:
The Pearl River Delta: Include the Shenzhen headquarters and Huizhou. The subsidiary in Huizhou is
the main source of production capacity. Through the rapid improvement of production efficiency in 2020, the
current production capacity and quality are stable. At the same time, some rented plants have been added to meet
the rapidly growing demand;
The Yangtze River Delta: The main plant site in Ningbo operation base has been completed, which is
estimated to be put into operation service in the second half of 2021.
Southeast Asia - Vietnam: In the first half of 2021, although the sub-subsidiary in Binh Duong, Vietnam
(Phase I) was affected by the epidemic, the Company overcame many difficulties including those related to
personnel and materials, and helped customers realize the agility and security of the supply chain. It only took half
a year for the main body of Phase II in Vietnam to be capped in the reporting period, and it is expected to be
completed by the end of 2021 and gradually release production capacity;
Southeast Asia - India: India is the hardest hit area of the epidemic this year. In the first half of the year, the
Company overcame many difficulties and achieved the goal set at the beginning of the reporting period through
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remote office means such as video and network. During the reporting period, the Indian subsidiary also obtained
the BIS product certification certificate of variable frequency air conditioning controllers in India as issued by the
Bureau of Indian Standards (BIS).As one of the first enterprises that have passed this certification in the world,
Topband has successfully demonstrated its excellent technology and leading position in the field of intelligent
control, adding powerful strength to its overseas market expansion.
6. Capital operation:
(1) During the reporting period, the Company privately issued 92,105,263 A-share stocks to 14 subscribers,
raising 1.05 billion yuan in total, the privately issued shares were listed on Shenzhen Stock Exchange on June 3,
2021, and the raised funds are intended to be used for the construction of Huizhou No. 2 Industrial Park and
supplement the Company's working capital;
(2) During the reporting period, Topband Lithium Battery, a wholly-owned subsidiary of the Company, used
its own capital of 33.4 million yuan to hold 83.5% of the equity of Ninghui Lithium Battery Co., Ltd. by acquiring
part of the equity of Taixing Ninghui Lithium Battery Co., Ltd. and increasing its capital. After this acquisition,
the Company will increase its cylindrical battery production capacity, share technical resources and customer
resources, explore the market, and accelerate the achievement of the Company's strategic objectives.
7. Other business situation: Non-recurring profit and loss increased significantly, which enhanced the
Company's net profit. During the reporting period, the book value of the Company's equity investment in
ORVIBO increased somewhat than at the end of 2020, and the change in the fair value of the investment increased
the Company's annual net profit by about 93.347 million yuan in 2021.
(2) Execution of core strategy
During the reporting period, the Company took the “scale growth” as the goal, implemented the strategic
concept of “customer intimacy, innovation driving, agile operation and lean improvement”, which is driven by
four major core capacities.
1. Customer intimacy strategy: The Company focused on the professional strategic customer of all
specified fields, positively expanded the global comprehensive big customer and the rapidly growing customer of
the technology innovation type, vigorously expanded three kinds of top customers including “big customers,
strategic customers and sci-tech innovation customers”, built the enterprise culture focusing on the customers,
established the “iron triangle” customer service organization, formed the first-class B2B brand of the intelligent
control and forged the all-around intimate partnership with the top customer base.
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Through the building of the customer-centered enterprise culture, thus the service concept of the staff was
improved and the customer service quality was optimized, with the strengthened harmony in the customer service.
Organization construction of the “iron triangle” of the customer service was strengthened. Taking the product line
as the unit, the customer service organization including the customer manager, solution specialist team and
delivery team was established, which has improved the service capacity and responsiveness of the top customers
remarkably. The first-class B2B brand image of the intelligent control was strengthened. A great number of brand
marketing campaigns were launched, centering on the “exhibition hall + exhibition + media”, which spreads the
brand core value of “agile innovation partner” through multiple channels.
2. Innovation-driven strategy: The customer value was driven by the technological innovation, and the
industry upgrading was driven by the business innovation, with the operation performance driven by management
innovation.
The Company persisted in driving the creation of customer value using the technology, keeping
strengthening the research development efforts in general technology and platform technology and creating the
multi-layered and three-dimensional advanced technology system of “product scheme + product platform +
technology platform”; Through scientific planning, both the near-term technology application and the mid-long
term technology reserve were considered to improve the Company’s capacity of technology leading. In terms of
technology product, it has aimed at providing the industry-leading solution to the intelligent control, promotion of
the “high-end orientation, intellectualization and personalization” of the technology product and continuous
improvement in the added value of products. The Company has formed dozens of core technology platforms,
hundreds of key products platforms, possessing the capacity of providing thousands of product customization
solutions.
The Company has actively made use of the business innovation to drive the industry upgrading. The
Company positively promoted the implementation of “intelligent + upgrading strategy”, took T-SMART as the
core platform, expedited the intelligent Internet of things layout, facilitated the Company’s upgrading from the
“supplier of intelligent control product” to the “supplier of intelligent control scheme” and the “service provider of
intelligent system”, which improved the customers’ core competitiveness and differentiation capacity in the age of
intelligent Internet of things.
The Company has continued to carry out management reform, driving the operation performance
improvement by management innovations, carrying out a series of management reform actions at all levels of the
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Company, the business unit and the product line, and continuously optimizing the management efficiency of all
levels to realize the operation performance improvement accordingly.
3. Agile operation strategy
The Company vigorously promotes agile culture. It has promoted the agile work culture and concept at all
levels, trained agile talents and constructed the agile organizations. Efforts were made to build the core platform
combining the agile research development, intelligent manufacturing and agile delivery. The capacity of systems
such as the research development, the supply chain, manufacturing and quality was continuously established and
strengthened. Centering on the method combining “agile + lean”, the agile excellent operation was realized. The
global layout was expedited and the step in the construction of the introducing of the customers in Indian
operation center to Ningbo operation center was rapidly promoted, with the capacity of closely serving customers
increased.
The Company's forward-looking layout promotes digital transformation. The digital reform was promoted.
With the comprehensive application of the information, network and automation and the strengthening in the
intelligent operation capacity, the agile future-oriented operation capacity has been improved.
The Company achieves full cost improvement through special projects. We are committed to conducting
all-round cost improvement, establishing a perfect quality verification system, focusing on process control and
optimization, and continuously improving the PDCA cycle. The Company promotes the cost reduction of
materials and processing fees through various special activities. Meanwhile, the Company promotes the
reconstruction of process-oriented organization centering on the customers and drives the process reform to keep
improving the efficiency in an end-to-end way, improving the quality control level of all links and realizing the
circulation improvement effect advocated by the quality idea of “zero defect”.
4. Organizational evolution strategy
In 2021, the Company gradually implemented eight business processes and built an "iron triangle" customer
service organization (BU) consisting of customer managers, solution expert teams and delivery teams based on
product lines and customers. The original organization BG energized the front end as a middle ground, and the
function platform served as a background to provide agile service and ensure the rapid implementation of the
business.
The Company has created a number of excellent BU general managers, trained a number of iron triangle
teams, steadily increased the number of key posts, and trained the first echelon of professionals in marketing,
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R&D and supply chain. The Company has defined the core key positions through the sorting of job qualifications,
and strengthened the introduction and training of key talents through the establishment of the cadre department. In
the future, through continuous improvement of evolution capacity of the organization, the Company’s capacity of
capturing opportunities and opportunity-based profit-making capacity will be rapidly improved.
Year-on-year change of main financial data
Unit: Yuan
Corresponding Y-o-y
Current reporting
period of last increase/de Reasons for change
period
year crease
Operating income: It increased by 1,646.62 million yuan
during the reporting period than during the same period of
last year, with an increase of 82.44%.The main reason is
as follows: The impact of COVID-19 on the Company's
Operating income 3,644,045,612.40 1,997,427,900.70 82.44% income in January to June 2021 was less severe than last
year, the impact of the epidemic was eased in January to
June 2021, and the development of customers and the
supply of product platforms jointly affected the increase
of income.
Operating cost: It increased by 1,239.20 million yuan
during the reporting period than during the same period of
Operating cost 2,765,295,741.39 1,526,098,258.54 81.20% last year, with an increase of 81.20%.The main reason is
that the increase in income during the reporting period
resulted in a corresponding increase in costs.
Sales expenses 76,889,884.59 59,922,424.82 28.32%
Management expense: It increased by 28.52 million yuan
during the reporting period than during the same period of
last year, with an increase of 42.99%.The main reason is
Management that during the reporting period, the Company adjusted its
94,842,819.69 66,326,771.94 42.99%
expenses organizational structure to meet the needs of future
strategic implementation, resulting in an increase in
expenses due to the corresponding increase in the number
of employees.
Financial expenses: compared with the same period last
year, it increased by 24.81 million yuan in the reporting
Financial period, with an increase of 85.68%.The main reason is
53,761,157.16 28,953,109.37 85.68%
expenses that the exchange rate rise of US dollars against RMB
during the same period of last year resulted in large
exchange gains while there were large exchange losses in
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the reporting period.
Income tax expense: It increased by 18.12 million yuan
during the reporting period than during the same period of
Income tax last year, with an increase of 65.82%.The main reason is
45,639,842.16 27,524,309.02 65.82%
expenses the increase of deferred income tax expenses accrued due
to changes in the fair value of financial assets held in the
current period over during the same period of last year.
R & D Investment: It increased by 66.89 million yuan
during the reporting period than during the same period of
R&D investment 233,628,312.83 166,733,759.63 40.12% last year, with an increase of 40.12%.The main reason is
that the Company increased R & D investment and R & D
personnel.
Net cash flow from operating activities: It decreased by
344.84 million yuan during the reporting period than
Net cash flow during the same period of last year, with a decrease of
from operating -225,705,738.12 119,136,253.19 -289.45% 289.45%. The main reason is the increase of the payment
activities for raw material preparation by the Company in response
to the shortage of raw materials and the rapidly growing
order demand.
The net cash flow from investment activities decreased by
258.87 million yuan during the current period than during
the same period of last year, with a year-on-year decrease
of 172.05%, which was mainly due to the increase in cash
Net cash flow
paid for the purchase and construction of fixed assets,
from investment -409,322,535.05 -150,456,848.85 -172.05%
intangible assets and other long-term assets during the
activities
current period than during the same period of last year,
and the decrease in cash recovered from wealth
management and investment over the same period of last
year.
Net cash flow from financing activities: It increased by
631.14 million yuan during the reporting period than
Net cash flow
during the same period of last year, with an increase of
from financing 748,918,536.69 117,774,942.35 535.89%
535.89%, which was mainly due to the receipt of funds
activities
raised through non-public offering of shares in the
reporting period.
Net increase in
cash and cash 87,547,923.94 86,244,023.17 1.51%
equivalents
Significant change in the Company's profit composition or profit source during the reporting period
□ applicable √ not applicable
There is no significant change in the Company's profit composition or profit source during the reporting period.
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Composition of operating income
Unit: Yuan
Current reporting period Corresponding period of last year
Y-o-y
Proportion in Proportion in
Amount Amount increase/decrease
operating income operating income
Total operating
3,644,045,612.40 100% 1,997,427,900.70 100% 82.44%
income
By industry
Intelligent control
3,644,045,612.40 100.00% 1,997,427,900.70 100.00% 82.44%
electronics industry
By product
Home appliances 1,626,940,673.61 44.65% 856,306,321.93 42.87% 90.00%
Tool 1,349,771,247.20 37.04% 667,366,394.41 33.41% 102.25%
Lithium battery 426,946,801.69 11.72% 277,118,460.37 13.87% 54.07%
Industry 166,694,953.58 4.57% 130,041,600.00 6.51% 28.19%
Others 73,691,936.32 2.02% 66,595,123.99 3.33% 10.66%
By region
Domestic 1,550,764,762.74 42.56% 843,429,180.61 42.23% 83.86%
Foreign 2,093,280,849.66 57.44% 1,153,998,720.09 57.77% 81.39%
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: Yuan
YoY change (%)
YoY change of YoY change of
Operating income Operating cost Gross profit rate of operating
operating costs gross profit rate
revenue
By industry
Intelligent control
3,644,045,612.40 2,765,295,741.39 24.11% 82.44% 81.20% 0.51%
electronics industry
By product
Home appliances 1,626,940,673.61 1,279,417,419.67 21.36% 90.00% 88.52% 0.61%
Tool 1,349,771,247.20 992,780,182.34 26.45% 102.25% 106.22% -1.41%
Lithium battery 426,946,801.69 328,540,290.00 23.05% 54.07% 53.50% 0.29%
By region
Domestic 1,550,764,762.74 1,154,759,649.45 25.54% 83.86% 81.09% 1.14%
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Foreign 2,093,280,849.66 1,610,536,091.94 23.06% 81.39% 81.28% 0.05%
When the statistical caliber of the Company's main business data is adjusted in the reporting period, the
Company's main business data in the latest period shall be the data adjusted according to the caliber at the end of
the reporting period
□ applicable √ not applicable
Reasons for the change of more than 30% in relevant data
√ applicable □ not applicable
The Company's revenue growth was mainly due to the rapid development of the intelligent society, the increase of
application scenarios, and the continuous improvement of the industry. The competitive advantage of China's
supply chain in the world has been revealed, overseas production capacity has been transferred to China and
Southeast Asia, and the development of new technology and new demand has brought incremental opportunities
to the industry. At the same time, the industry is concentrated on top enterprises. As a leading enterprise of
intelligent controllers, the Company's industry status and market share have increased year by year.
IV. Analysis of non-main business
√ applicable □ not applicable
Unit: Yuan
Proportion in total Whether it is
Amount Explanation of formation reason
profit sustainable
Income from Arising from disposal of Dynanonic and purchase
23,876,616.37 4.96% No
investment of financial products during the reporting period
Profit and loss from Arising from changes in fair value of Dynanonic,
changes in fair 98,312,768.52 20.41% ORVIBO and forward foreign exchange contracts No
value during the reporting period
Impairment of Due to the provision for inventory falling price
-114,456,207.37 -23.76% No
assets and expected credit impairment loss
Non-operating
1,581,081.80 0.33% No
income
Non-operating
4,486,165.70 0.93% No
expenses
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V. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: Yuan
At the end of the reporting Increase
End of last year
period or
Proportion Proportion decrease Description of major changes
Amount in total Amount in total of
assets assets proportion
Monetary capital 1,289,864,224.89 14.97% 1,219,095,476.50 17.90% -2.94%
Accounts
2,043,391,892.07 23.71% 1,701,111,153.84 24.98% -1.28%
receivable
Inventory: It increased by 760.75
million yuan during the reporting
period than at the beginning of the
period, with an increase of 68.21%.The
Inventory 1,876,064,400.39 21.77% 1,115,312,868.62 16.38% 5.39% main reason is that in order to cope
with the impact of the shortage of raw
materials and the rapidly growing order
demand, the Company prepared some
scarce raw materials.
Investment real
88,106,690.01 1.02% 89,238,265.71 1.31% -0.29%
estate
Long-term equity investment :
Long-term equity investment in the
reporting period The investment
increased by 8.61 million yuan than at
Long-term equity the beginning of the period, with an
15,111,937.35 0.18% 6,502,528.13 0.10% 0.08%
investment increase of 132.40%.The main reason is
the realization of partial equity
investment in Pas Electronic
Technology (Nanjing) Co., Ltd. during
the reporting period.
Fixed assets 1,165,010,173.60 13.52% 1,096,875,640.94 16.11% -2.59%
Construction in progress: It increased
by 94.13 million yuan during the
reporting period than at the beginning
Construction in
386,601,265.30 4.49% 292,474,798.41 4.30% 0.19% of the period, with an increase of
progress
32.18%. The main reason is the
increase of construction investment in
Ningbo East China Operation Center
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and the Phase II project in Vietnam.
Right to use assets: It increased by
69.40 million at the end of the reporting
period than at the beginning of the
Use right assets 69,398,303.91 0.81% 0.00% 0.81% period, with an increase of 100%. The
main reason is the implementation of
the new lease standards by the
Company during the reporting period.
Short-term loans: They decreased by
266.26 million yuan during the
reporting period than at the beginning
Short-term loans 135,890,741.95 1.58% 402,151,500.00 5.91% -4.33% of the period, with a decrease of
66.21%. The main reason is that some
short-term loans were repaid during the
reporting period.
Contractual
78,883,302.66 0.92% 72,576,117.56 1.07% -0.15%
liabilities
Long-term loans 169,564,000.00 1.97% 200,000,000.00 2.94% -0.97%
Lease liabilities 54,349,922.77 0.63% 0.00% 0.83%
2. Major foreign assets
√ applicable □ not applicable
Unit: Yuan
Proportion
Control Whether
of foreign
measures to there is a
Asset Reasons for Operation Earning assets to
Asset size Location ensure the significant
details formation mode position net assets
safety of risk of
of the
assets impairment
Company
Financial
Operation Investment R&D,
India supervision,
Center in and 278,011,437.53 production 1,878,916.68 5.65% No
(Pune) external
India establishment and sales
audit
Financial
Operation Investment Binh R&D,
supervision,
Center in and 375,092,031.73 Duong, production 81,840,334.96 7.62% No
external
Vietnam establishment Vietnam and sales
audit
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3. Assets and liabilities measured at fair value
√ applicable □ not applicable
Unit: Yuan
Profit and
loss from Changes in Impairment
Purchase Amount sold in
Opening changes in cumulative fair accrued in Other Closing
Items amount in the the current
balance fair value in value included the current changes balance
current period period
the current in equity period
period
Financial
assets
1. Trading
financial
assets
(excluding 226,491,482.10 98,312,768.52 145,703,179.70 352,000,000.00 346,382,339.75 330,421,910.87
derivative
financial
assets)
Subtotal of
financial 226,491,482.10 98,312,768.52 145,703,179.70 352,000,000.00 346,382,339.75 330,421,910.87
assets
Total of the
226,491,482.10 98,312,768.52 145,703,179.70 352,000,000.00 346,382,339.75 330,421,910.87
above
Financial
0.00 0.00 0.00 0.00 0.00 0.00 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
Book value at the
Items Restricted reasons
end of the period
Monetary Security deposits for application to banks for issuance of bank acceptance bills, bank deposits
5,480,466.03
capital frozen in litigation, etc.
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Fixed assets 333,098,600.00 Mortgage housing loan
Total 338,579,066.03 --
VI. Investment analysis
1. General situation
√ applicable □ not applicable
Investment amount in the same period of
Investment in the reporting period (yuan) Range of change
last year (yuan)
46,000,000.00 0.00 100.00%
2. Major equity investment obtained during the reporting period
√ applicable □ not applicable
Unit: Yuan
Whe
Shar
Esti ther
ehol Source Term Progress Current
Name of Invest mate invo Disclosu
Main Investment ding of Partn of Produc as of the investment Disclosure index
invested ment d lved re date
business amount prop capital er invest t type balance profit and (if any)
company mode inco in (if any)
ortio s ment sheet date loss
me litig
n
ation
The
industrial
and
commerci
al change
was
Taixing R & D,
completed
Ninghui production Own Not
Acqui 83.5 on January http://www.cninfo.
Lithium and sales of 33,400,000.00 capital Non None applic 0.00 -717,938.81 No
sition 0% February 16, 2021 com.cn/
Battery Co., lithium s e able
5, 2021
Ltd. batteries
and
included
in the
scope of
consolidati
on
Total -- -- 33,400,000.00 -- -- -- -- -- -- 0.00 -717,938.81 -- -- --
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3. Major non-equity investment in progress during the reporting period
□ applicable √ not applicable
4. Investment of financial assets
(1) Securities investment
√ applicable □ not applicable
Unit: Yuan
Profit and
Account Changes in Purchase
Book value loss from Amount Profit and Source
Security Initial ing cumulative amount Book value Account
Securit Securit at the changes in sold in the loss in the of
abbrevia investment measure fair value in the at the end of ing
y type y code beginning of fair value in current reporting capital
tion cost ment included in current the period subjects
the period the current period period s
model equity period
period
Domesti
Fair value Trading
c and Dynanoni Own
300769 10,000,000.00 measurem 31,033,991.99 -16,960,721.35 13,280,809.13 512,339.75 7,105,629.97 13,560,930.89 financial
foreign c capitals
ents assets
stocks
Total 10,000,000.00 -- 31,033,991.99 -16,960,721.35 13,280,809.13 0.00 512,339.75 7,105,629.97 13,560,930.89 -- --
Disclosure date of
announcement of Board
of Directors for Not applicable
approval of securities
investment
Disclosure date of
announcement of
Shareholders’ Meeting
Not applicable
for approval of
securities investment (if
any)
(2) Derivatives investment
√ applicable □ not applicable
Unit: 10,000 yuan
32
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Ending
Amoun Amount Actual
Purchase investmen
Name of Whether it Types of Initial t sold of profit
Initial amount Investment t amount
derivative is derivative investment during provisio and loss
Relationshi Termination investm during amount at as % of
s connected s amount of Start date the n for amount
p date ent the the end of the
investmen transactio investmen derivatives reportin impairm in the
amount reporting the period Co mpany’
t operator n t investment g ent (if reportin
period s ending
period any) g period
net assets
Forward
settlement
Non-related
Bank No and sale of 33,155.50 2021/1/4 2021/12/31 0 33,155.50 0 0 33,155.50 6.73% 450.79
party
foreign
exchange
Forward
settlement
Non-related
Bank No and sale of 6,635.50 2021/3/8 2021/12/31 0 6,635.50 0 0 6,635.50 1.35% 94.56
party
foreign
exchange
Total 39,791.00 -- -- 0 39,791 0 0 39,791.00 8.08% 545.35
Capital sources of derivatives investment Expo rt collection
Litigation (if applicab le) Not applicable
Disclosure date of announcement of Board of
Directors for approval of derivatives January 14, 2021
investment (if any)
Disclosure date of announcement of
Shareholders’ Meeting for approval of
derivatives investment (if any)
1. Market risk: changes in the do mestic and international economic situation may cause substantial fluctuations
in the exchange rate, and the forward foreign exchange trading business faces certain market risks. The purpose
of the Co mpany’s forward foreign exchange trading business is t o lock in the price of fo reign exchange
settlement or sale and reduce the impact of exchange rate fluctuations on the Company’s profits. The Co mpany
will closely track the change of exchange rate. Based on the target exchange rate determined by the busines s,
Risk analysis and control measures of
through the research and judgment of the trend of foreign exchange rate, co mb ined with the Co mpany’s forecast
derivatives positions in the reporting period
of foreign exchange receipt and payment and the bearing capacity of price change caused by exchange rate
(including but not limited to market risk,
fluctuation, the Co mpany will determine the plan of signing forward foreign exchange trading contract, and
liquid ity risk, credit risk, operational risk, legal
implement dynamic management of the business, so as to ensure the reasonable profit level o f the Co mpany.
risk, etc.)
2. Liquid ity risk: All forward fo reign exchange transactions of the Co mpany are b ased on reasonable estimation
of the Co mpany’s future import and export business to meet the demand of trade authenticity.
3. Bank defau lt risk: If the cooperative bank fails during the term of the contract due to its bankruptcy, the
Co mpany will not be able to deliver the original foreign exchange contract at the contract price, and there is a
risk of uncertain inco me. Therefore, the Co mpany selects a bank with high credit rating and rich experience in
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the foreign exchange trading market as the bank for the Company's engagement in foreign exchange trading
business, and the risk of its bankruptcy that may bring losses to the Company is very low.
4. Operat ional risk: The Co mpany may have relevant risks due to imp roper operation of the handling personnel
in the forward foreign exchange transaction business. The Co mpany has formulated a relevant management
system, and has clarified the operation process and responsible person, which is conducive to preventing and
controlling risks.
5. Legal risk: The Co mpany’s forward foreign exchange trading business may cause legal d isputes due to the
signing of relevant trading contracts with banks and unclear agreements. The Co mpany will strengthen the legal
review of relevant contracts, and select banks with good credit to carry out such business and control risks.
The Company carries out the confirmation and measurement in accordance with Chapter 7 Determination of
Fair Value of Art icle 22 of the Accounting Standards for Business Enterprises -Recognition and Measurement of
In the case of changes in the market price of the Financial Instruments, and the fair value is basically determined according to the price provided or obtained by
invested derivatives or the fair value of the pricing service institutions such as banks. The Co mpany’s accounting for the fair value o f derivatives is main ly
products during the reporting period, the the unexpired forward foreign exchange settlement and sale contract signed by the Company and the bank
analysis of the fair value of derivatives should during the reporting period. According to the difference between the exchange rate agreed in the unexpired
disclose the specific methods used and the forward fo reign exchange settlement and sale contract on the balance sheet date and the delivery exchange rate
setting of relevant assumptions and parameters indicated in the forward contract signed by the bank with the same term as the remain ing term of the fo rward
contract, it is recognized as trad ing financial assets or liabilit ies. During the report ing period, the pro fit and loss
of forward foreign exchange contracts of the Company was 5.4535 million yuan.
Whether the accounting policies and
accounting principles of the Co mpany’s
derivatives in the reporting period have None
changed significantly co mpared with those in
the previous reporting period
Special opinions of independent directors on
derivatives investment and risk control of the None
Co mpany
VII. Sale of major assets and equity
1. Sale of major assets
□ applicable √ not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□ applicable √ not applicable
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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: Yuan
Company Company Registered
Main business Total assets Net assets Operating income Operating profit Net profit
name type capital
R&D,
Shenzhen
production,
YAKO
sales, import RMB 14
Automation Subsidiary 386,053,421.43 309,958,801.40 166,417,599.85 33,704,452.07 30,329,229.86
and export of million
Technology
electronic parts
Co., Ltd.
and components
R&D,
Huizhou
production,
Topband
sales, import RMB 300
Electrical Subsidiary 3,422,932,581.13 1,057,271,286.09 2,317,404,565.31 101,851,607.85 93,926,431.46
and export of million
Technology
electronic parts
Co., Ltd.
and components
R&D,
production,
Topband USD
Sub-subsi sales, import
（Vietnam) 12.50 375,092,031.73 227,168,205.06 334,171,814.40 81,727,697.45 81,840,334.96
diary and export of
Co.,ltd million
electronic parts
and components
Note: The Company holds part of the equity of Shenzhen ORVIBO Technology Co., Ltd. During the reporting period, due to the
improvement of ORVIBO's overall valuation, the change in the fair value of the equity held by the Company increased the
Company's annual net profit by 93.347 million yuan in 2021.
Situation of acquisition and disposal of subsidiaries during the reporting period
√ applicable □ not applicable
Method of acquisition and disposal of Impact on overall production and
Company name
subsidiaries during the reporting period operations and results
Topband (Qingdao) Intelligent Control Co., No significant impact on the results of the
Newly established and acquired
Ltd. Report
Shenzhen Tengyi Industrial Co., Ltd. Acquisition through M & A No significant impact on the results of the
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Report
No significant impact on the results of the
Shenzhen Zhongli Consulting Co., Ltd. Newly established and acquired
Report
No significant impact on the results of the
Taixing Ninghui Lithium Battery Co., Ltd. Acquisition through M & A
Report
No significant impact on the results of the
Tulu Innovation (Hong Kong) Limited Newly established and acquired
Report
IX. Situation of structured entity controlled by the Company
□ applicable √ not applicable
X. Risks faced by the Company and countermeasures
1. Risk 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 research and
development 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.
2. Exchange rate risk
The Company's revenue from export sales accounts for more than half of total revenue. In order to cope with
the risk of exchange rate fluctuation, the Company will reduce and avoid foreign exchange risks by conducting
RMB hedging business, international procurement and re-pricing of new product.
3. Global operation risk
The Company provides more convenient services to customers by establishing operation centers and offices
in foreign countries. There are potential risks arising from changes of national conditions and policies in the
global operation.
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 Sino-US trade war, the recurrence
of COVID-19, the shortage of raw materials or the price rise, and the lack of manpower will increase the
uncertainty of the Company's operation.
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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 Date of
Meeting session Meeting type Meeting date Meeting resolution
participation ratio disclosure
Annual General
2020 Annual General
Meeting of 26.49% March 30, 2021 March 31, 2021 http://www.cninfo.com.cn
Meeting of Shareholders
Shareholders
First Extraordinary Extraordinary
General Meeting of General Meeting of 28.12% May 10, 2021 May 11, 2021 http://www.cninfo.com.cn
Shareholders in 2021 Shareholders
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 of the Company
√ applicable □ not applicable
Name Position Type Date Reason
Shi Yun Independent director Outgoing March 31, 2021 Resignation
Li Xumeng Independent director Be elected March 31, 2021 By-election of independent directors
III. Profit distribution and conversion of capital accumulation fund to share capital in the
reporting period
□ applicable √ not applicable
The Company plans not to distribute cash dividends or bonus shares or increase share capital with the provident
fund for the semiannual period.
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IV. Imple mentation of the Company’s equity incentive plan, employee stock ownership plan
or other employee incentive measures
√ applicable □ not applicable
Implementation of the 2018 stock option incentive plan during the reporting period
1. On January 14, 2021, the 5th Meeting of the 7th Board of Directors of the Company deliberated and
approved the Proposal on Canceling the Stock Options Granted But Not Exercised by the Resigned Employees of
the 2018 Stock Option Incentive Plan. Because 76 incentive objects including Huang Xinyu and Yang Shengcang
resigned and left the Company for personal reasons, 2.773 million stock options granted but not exercised shall
not be exercised, and were uniformly canceled by the Company.
2. On March 5, 2021, the 6th Meeting of the 7th Board of Directors and the 6th Meeting of the 7th Board of
Supervisors of the Company deliberated and approved the Proposal on the Second Exercise Period of 2018 Stock
Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights, the Proposal on Adjusting the
Incentive Objects and the Number of Stock Options in the 2018 Stock Option Incentive Plan and the Proposal on
Adjusting the Exercise Price of the 2018 Stock Option Incentive Plan. There were 569 incentive objects in the
second exercise period of the 2018 stock option incentive plan, and the number of the exercisable stock options
was 10.9851 million. Because from the announcement on March 9, 2021 to the vesting date, 39 incentive objects
including Xie Yong and Wu Shi resigned and left the Company for personal reasons, 2.4479 million stock options
granted but not exercised shall not be exercised and will be uniformly canceled by the Company. As the Company
implemented the 2019 annual equity distribution plan, the exercise price was adjusted from 3.70yuan / share to
3.65yuan / share.
3. As of March 31, 2021, a total of 10.9326 million stock options of 566 incentive objects who met the
exercise conditions in the second exercise period had been exercised, increasing the registered capital of the
Company by 10.9326 million yuan.
4. On April 26, 2021, the 9th Meeting of the 7th Board of Directors and the 8th Meeting of the 7th Board of
Supervisors deliberated and approved the Proposal on Adjusting the Exercise Price of the 2018 Stock Option
Incentive Plan. Due to the implementation of the 2020 annual equity distribution plan, the exercise price was
adjusted from 3.65 yuan / share to 3.60 yuan / share.
For details of the implementation of the 2018 stock option incentive plan, please refer to the announcements
made by the Company on the Securities Times and www.cninfo.com.cn on January 16, 2021, March 9, 2021 and
April 27, 2021.
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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
No
There is no heavy pollution in the production process of the Company's products. The Company has always
paid attention to the social public image of the enterprise, and has implemented environmental protection as an
important part of its social responsibility, so as to ensure that industrial solid waste is effectively treated according
to regulations, and that the discharge of various pollutants meets the national environmental protection standards.
The Company has passed ISO14001:2015 environmental management system certification, implemented
HSPMQC08000 hazardous substance process management system, and established a series of procedure
documents in terms of environmental factor identification and evaluation, environmental monitoring and
measurement management, environmental communication management, waste water, waste gas and solid waste
treatment control, hazardous substance identification and control, etc., clarifying the Company's environmental
protection organization system and responsibilities under the environmental management system. The passing of
the system certification and the establishment of relevant supporting systems of the Company show that the
Company has realized institutionalized and operable arrangements in terms of environmental protection.
II. Social responsibility
Not applicable
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Section VI Important Matters
I. Completed commitme nts in the reporting period and overdue uncompleted commitments
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
Commitment Commitm Commitm Commitm Performan
Reasons for commitments Commitment content
Party ent type ent time ent period ce
Share reform
commitments
Commitments made in the
acquisition report or the
equity change report
Commitments made in
asset restructuring
Mr. Wu Yongqiang, the actual controller of
the Company, has promised that during the
Commitm period of being the controlling shareholder
ents to and/or actual controller of the Company, he Fulfill the
Long-term
Wu Yongqiang horizontal would not directly or indirectly engage in any 2007/6/12 commitme
effective
competitio business which was the same, similar or nt strictly
n substantially competitive with the main
business of the Company at present and in the
future.
Ji Shuhai, a director of the Company as a
Commitments made
Commitm shareholder, has promised not to directly or
during the initial public
ents to indirectly engage in any business which was Fulfill the
offering or refinancing Long-term
Ji Shuhai horizontal the same, similar or substantially competitive 2007/6/12 commitme
effective
competitio with the main business of the Company at nt strictly
n present and in the future in any way during
his term of office.
1. I would not deliver benefits to other
organizations or individuals free of charge or
All directors and Other Fulfill the
under unfair conditions and not damage the
senior executives commitme 2020/4/29 On-going commitme
interests of the Company in other means.
of the Company nts nt strictly
2. I fully supported and cooperated with the
Company in regulating the duty consumption
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behavior of directors and senior executives.
Any duty consumption behaviors would occur
within the scope necessary for fulfilling my
duty to the Company. I strictly accepted the
supervision and management of the Company
to avoid extravagance or excessive
consumption.
3. I would strictly abide by the relevant laws
and regulations, the regulations and rules of
the CSRC, 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
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
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publicly at the General Meeting of
Shareholders and the designated newspapers
and magazines designated by the CSRC. I
voluntarily accept the self-discipline
supervision measures taken by the stock
exchange and China Association for Public
Companies. If my breach of the commitment
causes losses to the Company or the
shareholders, I shall be liable for
compensation in accordance with the law.
1. I would not abuse the position of the
controlling shareholder/actual controller to
interfere with the operation and management
activities of the Company beyond my power
and would not infringe the Company’s
interests under any circumstances.2. I would
try my best to make the Company implement
the compensation demand return measures.
3. I would work hard to link the compensation
system formulated by the Board of Directors
or the Compensation Committee with the
implementation of the Company’s
compensation return measures.
4. I would work hard to link the exercise
conditions (if any) of the corporate equity
Other incentive to be published in the future with Fulfill the
Wu Yongqiang commitme the implementation of the Company’s 2020/4/29 On-going commitme
nts compensation return measures. nt strictly
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.
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7. If I violate the above commitments, I
would make an explanation and apologize
publicly at the General Meeting of
Shareholders and the designated newspapers
and magazines designated by the CSRC. I
voluntarily accept the self-discipline
supervision measures taken by the stock
exchange and China Association for Public
Companies. If my breach of the commitment
causes losses to the Company or the
shareholders, I shall be liable for
compensation in accordance with the law.
If Huizhou Topband Electrical Technology
Co., Ltd., a wholly-owned subsidiary of
Shenzhen Topband Co., Ltd., failed to bid for
the land usage right of the plot DN-02-16 at
the southeast of the intersection of Dongxin
Avenue and Xing’an Road of Dongjiang
Other Fulfill the
High-tech Industrial Park in HZZK Hi-tech
Wu Yongqiang commitme 2020/7/30 On-going commitme
Industrial Development Zone to be used by
nts nt strictly
“Huizhou Topband No. 2 Industrial Park
Project” and Huizhou Topband was required
to purchase or lease other lands while the
Company would suffer from heavy losses, I
would compensate for such losses (such as
overpayment of land-transferring fees, rents).
I promise that I would not transfer all the
Peng Ganquan,
Other Company’s shares (including the shares Fulfill the
Equity incentive Zheng Sibin, Ma
commitme obtained from exercise and other shares) 2021/3/22 2021/9/22 commitme
commitment Wei, Wen Zhaohui
nts within six months after the exercise of the nt strictly
and Xiang Wei
stock option incentive plan in 2018.
Other commitments to
medium and small
shareholders of the
Company
Whether the commitment
Yes
was fulfilled on schedule
If the commitment was
not fulfilled within the
time limit, the specific
Not applicable
reasons for the failure and
the next work plan shall
be explained in detail
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II. Non-operating capital occupation of listed companies by controlling shareholders and their
related parties
□ applicable √ not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their related
parties in the reporting period of the Company.
III. External guarantee in violation of regulations
□ applicable √ not applicable
The Company had no external guarantee in violation of regulations during the reporting period.
IV. Appointme nt and dismissal of the accounting firm
Has the semiannual financial report been audited
□ Yes √ No
The semiannual report of the Company has not been audited.
V. Description of the “non-standard audit report” of the Accounting Firm in the reporting
period by the Board of Directors and the Board of Supervisors
□ applicable √ not applicable
VI. Description of the Board of Directors on the "non-standard audit report" of last year
□ applicable √ not applicable
VII. Matters related to bankruptcy reorganization
□ applicable √ not applicable
There were no matter related to bankruptcy reorganization during the reporting period.
VIII. Litigation matters
Major litigation and arbitration matters
□ applicable √ not applicable
The Company had no major litigation and arbitration matters during the reporting period.
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Other litigation matters
□ applicable √ not applicable
IX. Punishme nt and rectification
□ applicable √ not applicable
The Company had no punishment 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.
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 related financial companies and financial companies controlled by the Company
□ applicable √ not applicable
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There is no deposit, loan, credit extension or other financial business between the Company and its related
financial companies or between the financial companies controlled by the Company and the related parties.
6. Other major related transactions
□ applicable √ not applicable
The Company had no other major related transactions during the reporting period.
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
The Company had no lease during the reporting period.
2. Material guarantee
□ applicable √ not applicable
The Company had no major guarantee during the reporting period.
3. Entrusted wealth management
√ applicable □ not applicable
Unit: 10,000 yuan
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Accrued impairment
Amount of entrusted
Capital source of entrusted Unexpired Overdue amount not amount of overdue
Specific types financial
financing balance recovered and unrecovered
management
wealth management
Bank financial
Others 35,240 11,650 0 0
products
Total 35,240 11,650 0 0
Specific situation of high-risk entrusted financial management with the significant single amount or low security,
poor liquidity and unstable principal assurance
□ 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. Major contracts for daily operation
□ applicable √ not applicable
5. Other major contracts
□ applicable √ not applicable
XIII. Description of other major matters
√ applicable □ not applicable
1. Matters of the private issuing of stock in 2020
On April 29, 2021, the Company privately issued 92,105,263 A-share stocks to 14 subscribers at an issue
price of 11.40yuan / share, and the total amount of the funds raised was 1,049,999,998.20 yuan. On May 11, 2021,
BAKER TILLY International Accounting Firm (Special General Partnership) verified that the funds raised in this
offering reached the issuer's account and issued the Capital Verification Report of Shenzhen Topband Co., Ltd.
(TZYZ [2021] No. 29460).
On June 1, 2021, the Company issued the Report of Shenzhen Topband Co., Ltd. on the Issuance of Privately
Issued A-Share Stocks and the Listing Announcement, and 92,105,26 new shares were issued in this non-public
offering and listed on Shenzhen Stock Exchange on June 3, 2021, with a sales restriction period of 6 months.
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For details, please refer to the announcement made by the Company on the Securities Times and
www.cninfo.com.cnon June 1, 2021.
2. During the reporting period, the book value of the Company's equity investment in ORVIBO increased
than at the end of 2020, and the change in fair value increased the Company's annual net profit by 93.347 million
yuan in 2021.
XIV. Major matters of subsidiaries of the Company
√ applicable □ not applicable
1. On January 14, 2021, the 5th Meeting of the 7th Board of Directors of the Company deliberated and
approved the Proposal on the Subsidiary's Acquisition of 83.5% of the equity in Taixing Ninghui Lithium Battery
Co., Ltd. through Equity Transfer and Capital Increase, agreeing that the wholly-owned subsidiary of the
Company, Topband Lithium Battery, will use its own or self-raised funds of 15.40 million yuan to acquire 70% of
the equity in Taixing Ninghui Lithium Battery Co., Ltd. and increase the capital of the Target Company by 18
million yuan, and the registered capital of the Ninghui Lithium will increase from 22 million yuan to 40 million
yuan. After the completion of this transaction, Topband Lithium Battery will hold 83.5% of the equity in Ninghui
Lithium Battery. This matter has finished the industrial and commercial change on February 5, 2021 and included
in the scope of the Company's consolidated statements.
2. The plots numbered DX-41-02-01 and DX-41-02-02 with a total area of 49,674 square meters in Huizhou
Zhongkai High-Tech Zone, which was acquired by Huizhou Topband, the Company's subsidiary, in March 2021,
will be used for the construction of Huizhou No. 2 Industrial Park.
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Section VII Share Change and Shareholders
I. Share change
1. Share change
Unit: share
Before this change Changes in the period (+, -) After this change
Conversion
of
Issuance of Stock
Quantity Proportion accumulation Others Subtotal Quantity Proportion
new shares dividend
fund into
shares
I. Shares subject to
198,249,297 17.46% 92,105,2631 -3,180,000 88,925,263 287,174,560 23.19%
conditional restriction(s)
1. Shares held by the state 0.00% 0.00%
2. Shares held by
0.00% 3,508,771 3,508,771 3,508,771 0.28%
state-owned legal persons
3. Shares held by other
198,249,297 17.46% 88,596,492 -3,180,000 85,416,492 283,665,789 22.91%
domestic capital
Including: shares held by
0.00% 85,964,914 85,964,914 85,964,914 6.94%
domestic legal persons
Shares held by domestic
198,249,297 17.46% 2,631,578 -3,180,000 -548,422 197,700,875 15.97%
natural persons
4. Shares held by foreign
0.00% 0.00%
investment
Including: shares held by
0.00% 0.00%
overseas legal persons
Shares held by overseas
0.00% 0.00%
natural persons
II. Shares without restriction 936,967,512 82.54% 10,032,6002 4,080,000 14,112,600 951,080,112 76.81%
1. RM B ord inary share 936,967,512 82.54% 10,032,600 4,080,000 14,112,600 951,080,112 76.81%
2. Do mestic listed foreign
0.00% 0.00%
shares
3. Overseas listed foreign
0.00% 0.00%
shares
4. Others 0.00% 0.00%
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III. Total nu mber of shares 1,135,216,809 100.00% 102,137,863 0 0 900,000 103,037,863 1,238,254,672 100.00%
Note 1: During the reporting period, the Company privately issued 92,105,263 shares to 14 subscribers. As of the end of the reporting
period, all the shares were restricted shares;
Note 2: During the reporting period, 10,032,600 shares without restriction conditions were increased during the second exercise
period of the Company's 2018 stock option incentive plan.
Reasons for share change
√ applicable □ not applicable
The change in the Company's share capital during the reporting period was due to the following facts: the second
exercise period of the 2018 stock option incentive plan complied with the exercise conditions, and the incentive
objects increased 1,093.26 shares of share capital through independent exercise; and the non-public offering of
shares increased the share capital by 92,105,263 shares.
Approval of share change
√ applicable □ not applicable
1. The following decision-making procedures have been performed for the Company's stock option incentive plan:
On March 5, 2021, the 6th Meeting of the 7th Board of Directors and the 6th Meeting of the 7th Board of
Supervisors of the Company deliberated and approved the Proposal on the Second Exercise Period of the Second
Phase Stock Option Incentive Plan Meeting with the Exercise Conditions and Exercisable Rights, the Proposal on
Adjusting the Incentive Objects and the Number of Stock Options in the 2018 Stock Option Incentive Plan, and
the Proposal on Adjusting the Exercise Price of the 2018 Stock Option Incentive Plan, the board of supervisors of
the Company expressed verification opinions on the adjustment of the exercise price of the 2018 stock option
incentive plan and the list and number of incentive objects involved in the second exercise period of granting
stock options, and the independent directors expressed their independent opinions, agreeing that 569 incentive
objects would exercise their rights independently in the second exercise period, and the total number of
exercisable stock options was 10.9851 million.
2. The Company has performed the following decision-making procedures for this non-public offering:
(1) On April 28, 2020 and May 20, 2020, the Company held the 23rd Meeting of the 6th Board of Directors
and the 2019 Annual General Meeting of Shareholders respectively, which deliberated and approved the Proposal
on the Scheme for the Company's Non-Public Offering of Shares, the Proposal on Requesting the General
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Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's
Non-Public Offering of Shares and other proposals related to the non-public offering of shares.
(2) On August 10, 2020, the Company's application for non-public offering of shares was approved by the
issuance examination committee of the CSRC. On August 18, 2020, the Company received the Reply on
Approving the Non-Public Offering of Shares by Shenzhen Topbang Co., Ltd. (ZJXK [2020] No. 1865) as issued
by the China Securities Regulatory Commission. On April 29, 2021, the Company privately issued 92,105,263
ordinary shares (A shares) in RMB to 14 specific investors. On May 20, 2021, the Company obtained the
Confirmation of Acceptance of Share Registration Application as issued by Shenzhen Branch of China Securities
Depository and Clearing Company Limited, and the relevant shares were officially included in the register of
shareholders of the Company after they were registered in the account.
Transfer of share change
√ applicable □ not applicable
1. For the second exercise period of the 2018 stock option incentive plan, the exercise of 10.9851 million
stock options was approved. As of the end of the reporting period, 1,093.26 additional shares for stock option
exercise had been registered under the names of incentive objects respectively.
2. The securities registration formalities for the Company's non-public offering of 92,105,263 shares (RMB
ordinary shares) were completed in Shenzhen Branch of China Securities Depository and Clearing Company
Limited, and such shares were listed on Shenzhen Stock Exchange on June 3, 2021.
Implementation progress of share repurchase
□ applicable √ not applicable
Progress in the implementation of the reduction of share repurchase through centralized bidding
□ 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 common shareholders of the Company,
etc.
√ applicable □ not applicable
January to June 2021 January to December 2020
Calculation Calculation
Items Calculation based on Calculation based on
based on new based on original
new share capital original share capital
share capital share capital
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Basic earnings per share 0.35 0.38 0.43 0.47
Diluted earnings per share 0.35 0.37 0.43 0.47
Net assets per share attributable
3.98 4.34 2.80 3.05
to the parent company
Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory
institution
□ applicable √ not applicable
2. Changes in restricted shares
√ applicable □ not applicable
Unit: share
Number of Desterilization Increase number Number of
Date of
Name of restricted shares at number of restricted of restricted shares restricted shares at Reasons for
lifting sales
shareholder the beginning of the shares in the current in the current the end of the restricted shares
restriction
period period period period
Executives Not
Wu Yongqiang 159,006,536 0 0 159,006,536
lock-in shares applicable
Executives Not
Ji Shuhai 24,613,981 4,125,000 20,488,981
lock-in shares applicable
Executives Not
Ma Wei 5,726,200 0 225,000 5,951,200
lock-in shares applicable
Executives Not
Peng Ganquan 2,922,674 0 270,000 3,192,674
lock-in shares applicable
Executives Not
Zheng Sibin 3,932,977 0 180,000 4,112,977
lock-in shares applicable
Executives Not
Wen Zhaohui 1,581,095 0 180,000 1,761,095
lock-in shares applicable
Executives Not
Dai Huijuan 239,709 0 0 239,709
lock-in shares applicable
Executives Not
Xiang Wei 226,125 0 90,000 316,125
lock-in shares applicable
Non-public Restricted
offering of shares after December 3,
0 0 92,105,263 92,105,263
restricted shares non-public 2021
in 2021 offering
Total 198,249,297 4,125,000 93,050,263 287,174,560 -- --
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II. Issuance and listing of securities
√ applicable □ not applicable
Number of
Names of stocks and Issue price shares Termination
Issuing Issued Listing Disclosure
their derivative (or interest approved for date of Disclosure index
date quantity Date Date
securities rate) listing and transaction
trading
Stock category
Topband 2021/4/29 11.40 92,105,263 2021/6/3 0 http://www.cninfo.com.cn 2021/6/1
Description of securities issuance during the reporting period
On April 29, 2021, the Company privately issued 92,105,263 A-share stocks to 14 subscribers at an issue
price of 11.40 yuan / share, and the total amount of funds raised was 1,049,999,998.20 yuan. After deduction of
the relevant issuance expenses of 13,152,929.49 yuan (excluding tax), the net amount of funds actually raised was
1,036,847,068.71 yuan, of which the increased share capital was 92,105,263.00 yuan, and the capital reserve
increased by 944,741,805.71 yuan. The new shares in this non-public offering were listed on June 3, 2021, and
their sale will be restricted and locked within 6 months from the date of listing of the new shares. For details, refer
to the Report of Shenzhen Topband Co., Ltd. on the Issuance of Privately Issued A-Share Stocks and the Listing
Announcement as published on www.cninfo.com.cn on June 1, 2021.
III. Number of shareholders and shareholding situation of the Company
Unit: share
Total number of preferred
Total number of common shareholders at shareholders with voting rights
72,451 0
the end of the reporting period restored at the end of the reporting
period (if any) (see Note 8)
Shareholding of common shareholders holding more than 5% or the top 10 common shareholders
Increase Pledge, marking or
Number of
and freezing
ordinary shares Restricted Unrestricted
Nature of Shareholding decrease in
Name of shareholder held at the end ordinary ordinary
shareholders Proportion the Share
of the reporting shares held shares held Quantity
reporting status
period
period
Domestic
Wu Yongqiang 17.12% 212,008,715 0 159,006,536 53,002,179 Pledge 100,320,163
natural
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person
Hong Kong Securities Overseas
5.09% 62,973,224 48,699,664 0 62,973,224
Clearing Company Ltd. legal person
Domestic
Ji Shuhai natural 2.21% 27,318,642 0 20,488,981 6,829,661
person
First State Investment
Management (UK) Limited -
Overseas
First State Global Umbrella 1.84% 22,835,255 -4,621,100 0 22,835,255
legal person
Fund: First State Greater
China Growth Fund
National Social Security
Others 1.57% 19,498,162 19,498,162 0 19,498,162
Fund 406 Portfolio
Domestic
Xie Renguo natural 1.48% 18,280,080 1,674,280 0 18,280,080
person
Agricultural Bank of China
Limited - Harvest Emerging
Others 1.31% 16,185,354 16,185,354 5,001,953 11,183,401
Industry Equity Securities
Investment Fund
Harvest Fund - Guoxin
Investment Co., Ltd. -
Harvest Fund - Guoxin No. 2 Others 1.07% 13,281,957 13,281,957 4,617,188 8,664,769
Single Asset Management
Plan
Agricultural Bank of China
Limited - Harvest Core
Others 0.87% 10,806,815 10,806,815 0 10,806,815
Growth Hybrid Securities
Investment Fund
China Merchants Bank Co.,
Ltd. - Harvest Vision
Selected Two-Year Holding Others 0.72% 8,862,500 8,862,500 0 8,862,500
Hybrid Securities Investment
Fund
The top 10 common shareholders of
strategic investors or general legal persons
None
due to placement of new shares (if any)
(see Note 3)
Among the top ten shareholders, the fund manager of Agricultural Bank of China Limited - Harvest
Description of the above shareholders’
Emerging Industry Equity Securities Investment Fund, Harvest Fund - Guoxin Investment Co., Ltd. -
relationship or concerted action
Harvest Fund - Guoxin No. 2 Single Asset Management Plan, Agr icultural Bank of China Limited -
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Harvest Core Growth Hybrid Securities Investment Fund and China Merchants Bank Co., Ltd. -
Harvest Vision Selected Two-Year Holding Hybrid Securities Investment Fund is Harvest Fund
Management Co., Ltd. In addition to the foregoing, the Company does not know whether the top ten
shareholders are related or whether they are persons acting in concert.
Description of the above shareholders'
entrusting / entrusted voting rights and None
waiver of voting rights
Special explanations for the existence of At the end of the reporting period, the Company's special securities repurchase account held
special repurchase accounts among the top 14,838,920 ordinary shares in RMB of the Company, which accounted for 1.20% of the Company's
10 shareholders (if any) (see Note 11) total share capital.
Shareholding of the top 10 common shareholders without trading restrictions
Number of ordinary shares held without trading restrictions at Types of shares
Name of shareholder
the end of the reporting period Types of shares Quantity
Hong Kong Securities Clearing Company
62,973,224 RMB ordinary share 62,973,224
Ltd.
Wu Yongqiang 53,002,179 RMB ordinary share 53,002,179
First State Investment Management (UK)
Limited - First State Global Umbrella
22,835,255 RMB ordinary share 22,835,255
Fund: First State Greater China Growth
Fund
National Social Security Fund 406
19,498,162 RMB ordinary share 19,498,162
Portfolio
Xie Renguo 18,280,080 RMB ordinary share 18,280,080
Agricultural Bank of China Limited -
Harvest Emerging Industry Equity 11,183,401 RMB ordinary share 11,183,401
Securities Investment Fund
Agricultural Bank of China Limited -
Harvest Core Growth Hybrid Securities 10,806,815 RMB ordinary share 10,806,815
Investment Fund
China Merchants Bank Co., Ltd. - Harvest
Vision Selected Two-Year Holding Hybrid 8,862,500 RMB ordinary share 8,862,500
Securities Investment Fund
Harvest Fund - Guoxin Investment Co.,
Ltd. - Harvest Fund - Guoxin No. 2 Single 8,664,769 RMB ordinary share 8,664,769
Asset Management Plan
China CITIC Bank Co., Ltd. - HFT
Growth Value Hybrid Securities 8,336,482 RMB ordinary share 8,336,482
Investment Fund
Description of the association relationship Among the top ten shareholders, the fund manager of Agricultural Bank of China - Harvest
or concerted action between the top 10 Emerging Industry Equity Securities Investment Fund, Agricultural Bank of China - Harvest Core
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common shareholders without sale Growth Hybrid Securities Investment Fund, China Merchants Bank - Harvest Vision Selected
restriction conditions and between the top Two-Year Holding Hybrid Securities Investment Fund and Harvest Fund - Guoxin Investment Co.,
10 common shareholders without sale Ltd. - Harvest Fund - Guoxin No. 2 Single Asset Management Plan is Harvest Fund Management
restriction conditions and the top 10 Co., Ltd.In addition to the foregoing, the Company does not know whether the top ten shareholders
common shareholders are related or whether they are persons acting in concert.
Description of the participation of the top
10 common shareholders in securities None
margin trading (if any) (see Note 4)
Whether the top 10 common shareholders and the top 10 shareholders of the ordinary share without trading
restrictions have conducted the agreed repurchase transactions during the reporting period
□ Yes √ No
The top 10 common shareholders of ordinary share and the top 10 shareholders of ordinary share without trading
restrictions did not carry out the agreed repurchase transaction during the reporting period.
IV. Changes in shareholding of directors, supervisors and senior executives
√ applicable □ not applicable
Number
Number of Number Number of
of Number of Number of
shares held of shares Number of restricted
additional restricted restricted
at the reduced in shares held shares granted
Position shares shares granted shares granted
Name Position beginning the at the end of at the
status held in the in the current at the end of
of the current the period beginning of
current period the period
period period (shares) the period
period (shares) (shares)
(shares) (shares) (shares)
(shares)
Wu Chairman of the
Incumbent 212,008,715 212,008,715
Yongqiang Board
Ji Shuhai Director Incumbent 27,318,642 27,318,642
Director and
Zheng
deputy general Incumbent 5,243,970 240,000 5,483,970
Sibin
manager
Director and
Ma Wei deputy general Incumbent 7,634,934 300,000 7,934,934
manager
Peng
Director Incumbent 3,896,900 360,000 4,256,900
Ganquan
Wu Hang Director Incumbent 0
Hua Independent Incumbent 0
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Xiuping director
Independent
Shi Yun Outgoing 0
director
Li Independent
Incumbent 0
Xumeng director
Huang Independent
Incumbent 0
Yuegang director
Deputy general
manager,
Wen secretary of the
Incumbent 2,108,127 240,000 2,348,127
Zhaohui Board and
investment
director
Chief financial
Xiang Wei Incumbent 301,500 120,000 421,500
officer
Dai
Supervisor Incumbent 319,612 319,612
Huijuan
Kang
Supervisor Incumbent
Weiquan
Chen
Supervisor Outgoing 0
Jinzhou
Total -- -- 258,832,400 1,260,0001 0 260,092,400 0 0 0
Note 1: Among the above increased shares held in the current period, the exercise of stock options by directors and senior executives
increased by 1.2 million shares, and Ms. Wen Zhaohui, who served as deputy general manager, secretary of the Board of Directors
and investment director in the Company, increased 60,000 shares in the secondary market.
V. Change of controlling shareholder or actual controller
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
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
Has the Semiannual Report been audited
□ Yes √ No
The semiannual financial report of the Company has not been audited.
II. Financial Statements
The unit of statements in the financial notes is: Yuan (RMB)
1. Consolidated balance sheet
Prepared by: Shenzhen Topband Co., Ltd.
June 30, 2021
Unit: Yuan
Items June 30, 2021 December 31, 2020
Current assets:
Monetary capital 1,289,864,224.89 1,219,095,476.50
Settlement of provisions
Loans to other banks
Trading financial assets 330,421,910.87 226,491,482.10
Derivative financial assets
Notes receivable 68,545,551.44 39,477,930.63
Accounts receivable 2,043,391,892.07 1,701,111,153.84
Receivables financing 289,248,841.88 246,656,027.27
Prepayments 31,232,814.57 17,735,229.99
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 19,880,174.91 40,728,126.64
Including: interest receivable
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Dividends receivable
Repurchase of financial assets for resale
Inventory 1,876,064,400.39 1,115,312,868.62
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 117,000,552.09 68,175,222.37
Total current assets 6,065,650,363.11 4,674,783,517.96
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 15,111,937.35 6,502,528.13
Other equity instrument investment
Other non-current financial assets
Investment real estate 88,106,690.01 89,238,265.71
Fixed assets 1,165,010,173.60 1,096,875,640.94
Construction in progress: 386,601,265.30 292,474,798.41
Productive biological assets
Oil and gas assets
Use right assets 69,398,303.91
Intangible assets 367,214,534.15 309,794,540.63
Development expenditure 83,564,062.23 68,518,375.79
Goodwill 110,584,369.36 108,637,368.48
Long-term deferred expenses 83,025,073.79 72,077,671.09
Deferred income tax assets 77,026,168.91 55,192,974.75
Other non-current assets 107,814,528.35 34,639,355.39
Total non-current assets 2,553,457,106.96 2,133,951,519.32
Total assets 8,619,107,470.07 6,808,735,037.28
Current liabilities:
Short-term loans 135,890,741.95 402,151,500.00
Borrowing money from the central bank
Borrowed funds
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Trading financial liabilities
Derivative financial liabilities
Notes payable 1,009,181,787.24 715,574,653.91
Accounts payable 1,882,551,558.88 1,549,906,339.72
Advance receipt 294,460.10 487,267.17
Contractual liabilities 78,883,302.66 72,576,117.56
Financial assets sold for repurchase
Deposit absorption and interbank deposit
Acting trading securities
Acting underwriting securities
Employee compensation payable 85,602,453.15 175,503,764.12
Taxes payable 34,339,526.87 60,256,015.60
Other payables 69,253,389.96 57,160,615.93
Including: Interest payable
Dividends payable
Service charges and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 38,891,387.34
Other current liabilities
Total current liabilities 3,334,888,608.15 3,033,616,274.01
Non-current liabilities
Insurance contract reserve
Long-term loans 169,564,000.00 200,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 54,349,922.77
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 15,984,300.00 14,624,770.00
Deferred income tax liabilities 26,520,140.43 11,819,861.30
Other non-current liabilities
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Total non-current liabilities 266,418,363.20 226,444,631.30
Total liabilities 3,601,306,971.35 3,260,060,905.31
Owner's equity:
Share capital 1,238,254,672.00 1,135,216,809.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 1,960,086,381.40 956,734,039.75
Less: treasury shares 80,017,965.68 80,017,965.68
Other comprehensive income -42,563,250.94 -24,555,229.97
Special reserve
Surplus reserves 151,359,957.53 151,359,957.53
General risk provision
Undistributed profit 1,696,564,549.49 1,324,944,369.91
Total owner's equity attributable to the parent
4,923,684,343.80 3,463,681,980.54
company
Minority equity 94,116,154.92 84,992,151.43
Total owners' equity 5,017,800,498.72 3,548,674,131.97
Total liabilities and owners' equity 8,619,107,470.07 6,808,735,037.28
Legal Representative: Wu Yongqiang Accounting Head: Xiang Wei Accounting Department Head: Xiang Wei
2. Balance sheet of the parent company
Unit: Yuan
Items June 30, 2021 December 31, 2020
Current assets:
Monetary capital 879,435,960.62 705,163,083.52
Trading financial assets 249,934,410.87 102,133,982.10
Derivative financial assets
Notes receivable 35,595,124.85 6,939,021.98
Accounts receivable 1,270,734,326.96 896,265,475.70
Receivables financing 234,949,010.36 217,543,679.19
Prepayments 5,648,082.47 6,953,106.28
Other receivables 35,903,482.71 41,159,647.12
Including: interest receivable
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Dividends receivable
Inventory 263,579,317.26 209,965,269.91
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 21,748,429.53 12,054,327.33
Total current assets 2,997,528,145.63 2,198,177,593.13
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 2,430,013,395.44 2,200,934,231.94
Other equity instrument investment
Other non-current financial assets
Investment real estate
Fixed assets 134,147,372.89 120,829,877.70
Construction in progress: 1,435,904.64 2,392,458.84
Productive biological assets
Oil and gas assets
Use right assets 697,546.57
Intangible assets 134,596,577.03 132,732,792.93
Development expenditure 61,286,664.99 44,248,718.56
Goodwill
Long-term deferred expenses 24,319,292.31 27,739,322.93
Deferred income tax assets 42,163,062.25 27,692,977.98
Other non-current assets 9,917,663.95 6,997,597.90
Total non-current assets 2,838,577,480.07 2,563,567,978.78
Total assets 5,836,105,625.70 4,761,745,571.91
Current liabilities:
Short-term loans 50,000,000.00 102,151,500.00
Trading financial liabilities
Derivative financial liabilities
Notes payable 720,962,031.81 696,684,142.33
Accounts payable 352,811,969.26 471,203,775.42
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Advance receipt
Contractual liabilities 35,468,003.49 29,103,190.50
Employee compensation payable 33,507,303.52 91,953,399.79
Taxes payable 12,243,422.66 28,211,920.73
Other payables 298,986,605.60 299,042,515.61
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 318,306.63
Other current liabilities
Total current liabilities 1,504,297,642.97 1,718,350,444.38
Non-current liabilities
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 337,314.33
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 9,869,500.00 10,535,500.00
Deferred income tax liabilities 22,842,926.07 8,106,676.00
Other non-current liabilities
Total non-current liabilities 33,049,740.40 18,642,176.00
Total liabilities 1,537,347,383.37 1,736,992,620.38
Owner's equity:
Share capital 1,238,254,672.00 1,135,216,809.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2,010,834,687.21 1,007,315,299.41
Less: treasury shares 80,017,965.68 80,017,965.68
Other comprehensive income 5,316,991.05 5,569,575.04
Special reserve
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Surplus reserves 151,331,439.07 151,331,439.07
Undistributed profit 973,038,418.68 805,337,794.69
Total owners' equity 4,298,758,242.33 3,024,752,951.53
Total liabilities and owners' equity 5,836,105,625.70 4,761,745,571.91
3. Consolidated income statement
Unit: Yuan
Items Semiannual period of 2021 Semiannual period of 2020
I. Total operating income 3,644,045,612.40 1,997,427,900.70
Including: operating income 3,644,045,612.40 1,997,427,900.70
Interest income
Premium earned
Service charge and commission income
II. Total operating costs 3,178,835,573.38 1,825,721,505.86
Including: Operating cost 2,765,295,741.39 1,526,098,258.54
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 13,278,244.24 10,668,199.68
Sales expenses 76,889,884.59 59,922,424.82
Management expenses 94,842,819.69 66,326,771.94
Research and development expenses 174,767,726.31 133,752,741.51
Finance charges 53,761,157.16 28,953,109.37
Including: Interest expenses 6,676,232.42 27,903,509.75
Interest income 4,397,537.66 4,449,371.38
Plus: other income 12,006,181.38 19,504,668.08
Return on investment (loss marked with "-") 23,876,616.37 77,494,488.36
Including: income from investment in associated enterprises
-1,390,590.78 -144,574.55
and joint ventures
Income from derecognition of financial assets measured at
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amortized cost
Exchange gains (loss marked with "-")
Net exposure hedge gain (loss marked with "-")
Income from changes in fair value (loss marked with "-") 98,312,768.52 3,711,170.46
Credit impairment loss (loss marked with "-") -15,163,819.96 2,991,413.90
Asset impairment loss (loss marked with "-") -99,292,387.41 -23,788,421.51
Income from disposal of assets (loss marked with "-") -317,178.75 -893,602.45
III. Operating profit (loss marked with "-") 484,632,219.17 250,726,111.68
Plus: non-operating income 1,581,081.80 977,834.68
Less: non-operating expenses 4,486,165.70 3,168,658.11
IV. Total profit (total loss marked with "-") 481,727,135.27 248,535,288.25
Less: income tax expense 45,639,842.16 27,524,309.02
V. Net profit (net loss marked with "-") 436,087,293.11 221,010,979.23
(I) Classification according to business continuity
1. Net profit from continuing operation (net loss marked
436,087,293.11 221,010,979.23
with "-")
2. Net profit from termination of operation (net loss marked
with "-")
(II) Classification according to ownership
1. Net profits attributable to the owner of the parent
428,185,704.03 208,913,599.16
company
2. Profits and losses of minority shareholders 7,901,589.08 12,097,380.07
VI. Net after-tax amount of other comprehensive income -18,008,020.97 -5,441,663.04
Net after-tax amount of other comprehensive income
-18,008,020.97 -5,441,663.04
attributable to the owner of the parent company
(I) Other comprehensive income that cannot be reclassified
into profits or losses
1. Remeasurement of changes in defined benefit plans
2. Other comprehensive income that cannot be transferred
to profits and losses under the equity method
3. Changes in the fair value of other equity instrument
investments
4. Changes in fair value of the enterprise's own credit risk
5. Others
(II) Other comprehensive income that is reclassified into
-18,008,020.97 -5,441,663.04
profits and losses
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1. Other comprehensive income transferable to profits and
losses under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive income
4. Provision for credit impairment of other debt investment
5. Cash flow hedge reserve
6. Difference in translation of foreign-currency financial
-17,755,436.98 -5,441,663.04
statements
7. Others -252,583.99
Net after-tax amount of other comprehensive income
attributable to minority shareholders
VII. Total comprehensive income 418,079,272.14 215,569,316.19
Total consolidated income attributable to the owners of the
410,177,683.06 203,471,936.12
parent company
Total consolidated income attributable to minority
7,901,589.08 12,097,380.07
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.38 0.20
(II) Diluted earnings per share 0.37 0.19
In case of merger of enterprises under the same control in the current period, the net profit realized by the
combined party before the merger is 0 yuan, and the net profit realized by the combined party in the previous
period is 0 yuan.
Legal Representative: Wu Yongqiang Accounting Head: Xiang Wei Accounting Department Head: Xiang Wei
4. Income statement of the parent company
Unit: Yuan
Items Semiannual period of 2021 Semiannual period of 2020
I. Operating income 2,161,935,231.31 1,263,648,661.10
Less: operating cost 1,795,042,018.32 1,047,271,899.65
Taxes and surcharges 4,438,662.57 5,684,505.03
Sales expenses 46,844,689.71 34,755,904.46
Management expenses 58,380,674.25 44,015,940.91
Research and development expenses 93,574,802.25 81,007,968.60
Finance charges 32,579,149.03 26,300,463.75
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Including: Interest expense 1,261,238.91 23,717,076.39
Interest income 2,906,961.53 3,646,196.88
Plus: other income 4,582,626.08 12,634,521.80
Return on investment (loss marked with "-") 37,623,948.49 79,877,364.53
Including: income from investment in associated enterprises
-495,808.80 -144,574.55
and joint ventures
Income from derecognition of financial assets measured at
0.00 0.00
amortized cost (loss marked with "-")
Net exposure hedge gain (loss marked with "-") 0.00 0.00
Income from changes in fair value (loss marked with "-") 98,312,768.52 3,711,170.46
Credit impairment loss (loss marked with "-") -9,738,998.19 2,353,332.04
Asset impairment loss (loss marked with "-") -5,238,034.46 -4,583,523.18
Income from disposal of assets (loss marked with "-") 699,460.42 -308,498.91
II. Operating profit (loss marked with "-") 257,317,006.04 118,296,345.44
Plus: non-operating income 154,957.57 409,169.15
Less: non-operating expenses 2,818,249.19 1,962,144.73
III. Total profit (total loss marked with "-") 254,653,714.42 116,743,369.86
Less: income tax expense 30,387,565.98 13,615,774.91
IV. Net profit (net loss marked with "-") 224,266,148.44 103,127,594.95
(I) Net profit from continuing operation (net loss marked
224,266,148.44 103,127,594.95
with "-")
(II) Net profit from termination of operation (net loss
marked with "-")
V. Net after-tax amount of other comprehensive income 0.00 0.00
(I) Other comprehensive income that cannot be reclassified
0.00 0.00
into profits or losses
1. Remeasurement of changes in defined benefit plans 0.00 0.00
2. Other comprehensive income that cannot be transferred to
0.00 0.00
profits and losses under the equity method
3. Changes in the fair value of other equity instrument
0.00 0.00
investments
4. Changes in fair value of the enterprise's own credit risk 0.00 0.00
5. Others 0.00 0.00
(II) Other comprehensive income that is reclassified into
0.00 0.00
profits and losses
1. Other comprehensive income transferable to profits and 0.00 0.00
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losses under the equity method
2. Changes in the fair value of other debt investments 0.00 0.00
3. Amount of financial assets reclassified into other
0.00 0.00
comprehensive income
4. Provision for credit impairment of other debt investment 0.00 0.00
5. Cash flow hedge reserve 0.00 0.00
6. Difference in translation of foreign-currency financial
0.00 0.00
statements
7. Others -252,583.99 0.00
VI. Total comprehensive income 224,266,148.44 103,127,594.95
VII. Earnings per share:
(I) Basic earnings per share 0.20 0.10
(II) Diluted earnings per share 0.20 0.10
5. Consolidated cash flow statement
Unit: Yuan
Items Semiannual period of 2021 Semiannual period of 2020
I. Cash flow from operating activities:
Cash received from selling goods and providing services 3,223,676,867.56 2,072,020,392.01
Net increase in customer deposits and interbank deposits
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
Tax rebates received 211,748,519.91 118,278,020.67
Receipt of other cash related to operating activities 31,046,302.40 68,964,767.70
Subtotal of cash inflow from operating activities 3,466,471,689.87 2,259,263,180.38
Cash paid for purchasing goods and accepting services 2,793,464,547.98 1,557,251,884.99
Net increase in customer loans and advances
Net increase in deposits with central banks and interbanks
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Cash for payment of claims under original insurance contracts
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 671,904,067.00 444,463,597.74
Various taxes paid 113,796,964.36 45,335,658.19
Other cash paid in connection with operating activities 113,011,848.65 93,075,786.27
Subtotal of cash outflow from operating activities 3,692,177,427.99 2,140,126,927.19
Net cash flow from operating activities -225,705,738.12 119,136,253.19
II. Cash flow from investing activities:
Cash received from investment recovery 349,382,339.75 337,273,086.77
Cash received as return on an investment 25,253,304.38 77,680,146.00
Net cash recovered from the disposal of fixed assets, intangible
815,062.65 415,293.95
assets and other long-term assets
Net cash recovered from the disposal of subsidiaries and other
business units
Other cash received relating to investment activities 0.00
Subtotal of cash inflow from investment activities 375,450,706.78 415,368,526.72
Cash paid for the purchase and construction of fixed assets,
402,240,855.04 248,825,375.57
intangible assets and other long-term assets
Cash paid for investment 371,250,000.00 317,000,000.00
Net increase in pledged loans
Net cash paid for acquiring subsidiaries and other business units 11,282,386.79 0.00
Other cash paid in connection with investment activities 0.00 0.00
Subtotal of cash outflow from investment activities 784,773,241.83 565,825,375.57
Net cash flow from investment activities -409,322,535.05 -150,456,848.85
III. Cash flow from financing activities:
Cash received from absorbing investment 1,078,017,195.75 44,442,375.30
Including: cash received by subsidiaries' absorption of minority
shareholders' investment
Cash received from loans 255,055,700.02 298,786,666.67
Other cash received in connection with financing activities 18,039,024.44 52,360,005.58
Subtotal of cash inflow from financing activities 1,351,111,920.21 395,589,047.55
Cash paid to repay debts 527,265,500.00 108,000,000.00
Cash paid to distribute dividends, profits or pay interest 65,867,823.74 83,169,748.80
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Including: dividends and profits paid by subsidiaries to minority
4,061,400.15
shareholders
Other cash paid in connection with financing activities 9,060,059.78 86,644,356.40
Subtotal of cash outflow from financing activities 602,193,383.52 277,814,105.20
Net cash flow from financing activities 748,918,536.69 117,774,942.35
IV. Impact of exchange rate fluctuations on cash and cash
-26,342,339.58 -210,323.52
equivalents
V. Net increase in cash and cash equivalents 87,547,923.94 86,244,023.17
Plus: balance of cash and cash equivalents at the beginning of
1,196,835,834.93 761,845,320.50
the period
VI. Balance of cash and cash equivalents at the end of the period 1,284,383,758.87 848,089,343.67
6. Cash flow statement of the parent company
Unit: Yuan
Items Semiannual period of 2021 Semiannual period of 2020
I. Cash flow from operating activities:
Cash received from selling goods and providing services 2,021,396,547.85 1,492,388,161.16
Tax rebates received 142,309,354.93 75,259,932.18
Receipt of other cash related to operating activities 424,206,181.63 452,608,881.68
Subtotal of cash inflow from operating activities 2,587,912,084.41 2,020,256,975.02
Cash paid for purchasing goods and accepting services 2,356,322,702.66 1,057,280,107.03
Cash paid to and for employees 269,073,726.98 220,884,221.13
Various taxes paid 44,861,325.36 13,941,413.27
Other cash paid in connection with operating activities 392,382,205.31 442,833,120.19
Subtotal of cash outflow from operating activities 3,062,639,960.31 1,734,938,861.62
Net cash flow from operating activities -474,727,875.90 285,318,113.40
II. Cash flow from investing activities:
Cash received from investment recovery 512,339.75 59,273,086.77
Cash received as return on an investment 38,119,757.29 80,005,428.67
Net cash recovered from the disposal of fixed assets, intangible
564,922.65 312,800.00
assets and other long-term assets
Net cash recovered from the disposal of subsidiaries and other
0.00 0.00
business units
Other cash received relating to investment activities 0.00 0.00
Subtotal of cash inflow from investment activities 39,197,019.69 139,591,315.44
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Cash paid for the purchase and construction of fixed assets,
71,540,415.92 37,562,393.32
intangible assets and other long-term assets
Cash paid for investment 279,794,442.93 281,643,000.00
Net cash paid for acquiring subsidiaries and other business units 0.00 0.00
Other cash paid in connection with investment activities 0.00 0.00
Subtotal of cash outflow from investment activities 351,334,858.85 319,205,393.32
Net cash flow from investment activities -312,137,839.16 -179,614,077.88
III. Cash flow from financing activities:
Cash received from absorbing investment 1,078,017,195.75 44,442,375.30
Cash received from loans 170,000,000.00 0.00
Other cash received in connection with financing activities 8,672,342.48 18,199,609.19
Subtotal of cash inflow from financing activities 1,256,689,538.23 62,641,984.49
Cash paid to repay debts 218,569,500.00 100,000,000.00
Cash paid to distribute dividends, profits or pay interest 57,431,645.93 75,722,595.33
Other cash paid in connection with financing activities 2,494,819.08 46,094,403.16
Subtotal of cash outflow from financing activities 278,495,965.01 221,816,998.49
Net cash flow from financing activities 978,193,573.22 -159,175,014.00
IV. Impact of exchange rate fluctuations on cash and cash
-9,917,875.85 -489,772.91
equivalents
V. Net increase in cash and cash equivalents 181,409,982.31 -53,960,751.39
Plus: balance of cash and cash equivalents at the beginning of
696,490,741.04 367,236,925.96
the period
VI. Balance of cash and cash equivalents at the end of the period 877,900,723.35 313,276,174.57
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7. Consolidated statement of changes in owner's equity
Current amount
Unit: Yuan
Semiannual period of 2021
Owner's equity attributable to the parent company
Other equity
Items Specia General
instruments Other Minority Total owners'
Less: treasury l Surplus risk Undistributed Othe
Share capital Preferr Perpet Capital reserves comprehensiv Subtotal equity equity
Othe shares reserv reserves provisio profit rs
ed ual e income
rs e n
shares bonds
I. Ending balance of last year 1,135,216,809.00 0.00 0.00 0.00 956,734,039.75 80,017,965.68 -24,555,229.97 0.00 151,359,957.53 0.00 1,324,944,369.91 0.00 3,463,681,980.54 84,992,151.43 3,548,674,131.97
Plus: Changes in accounting
0.00
policies
Early error correction 0.00
Merger of enterprises under the
0.00
same control
Others 0.00
II. Balance at the beginning of
1,135,216,809.00 0.00 0.00 0.00 956,734,039.75 80,017,965.68 -24,555,229.97 0.00 151,359,957.53 0.00 1,324,944,369.91 3,463,681,980.54 84,992,151.43 3,548,674,131.97
the current year
III. Amount of increase or
decrease in the current period 103,037,863.00 0.00 0.00 0.00 1,003,352,341.65 0.00 -18,008,020.97 0.00 0.00 0.00 371,620,179.58 1,460,002,363.26 9,124,003.49 1,469,126,366.75
(decrease marked with "-")
(I) Total comprehensive income -18,008,020.97 428,185,704.03 410,177,683.06 7,901,589.08 418,079,272.14
(II) Capital invested and 103,037,863.00 976,663,746.46 1,079,701,609.46 1,079,701,609.46
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reduced by owners
1.Ordinary shares invested by
103,037,863.00 982,896,579.72 1,085,934,442.72 1,085,934,442.72
owners
2.Capital contributed by holders
0.00
of other equity instruments
3.Amount of share-based
payment included in owner's -6,232,833.26 -6,232,833.26 -6,232,833.26
equity
4.Others
(III) Profit distribution -56,565,524.45 -56,565,524.45 -5,197,835.08 -61,763,359.53
1.Withdrawal of surplus reserve
2.Withdrawal of general risk
provision
3.Distribution to owners (or
-56,565,524.45 -56,565,524.45 -5,197,835.08 -61,763,359.53
shareholders)
4.Others
(IV) Internal carryover of
owner's equity
1.Conversion of capital reserves
to additional capital (or share
capital)
2.Conversion of surplus
reserves to additional capital (or
share capital)
3.Losses covered with surplus
reserve
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4.Change of defined benefit
plans carried forward to retained
earnings
5.Other comprehensive income
carried forward to retained
earnings
6.Others
(V) Special reserve
1.Withdrawal in the current
period
2.Use in the current period
(VI) Others 26,688,595.19 26,688,595.19 6,420,249.49 33,108,844.68
IV. Ending balance of the
1,238,254,672.00 1,960,086,381.40 80,017,965.68 -42,563,250.94 151,359,957.53 1,696,564,549.49 4,923,684,343.80 94,116,154.92 5,017,800,498.72
current period
Amount of the previous period
Unit: Yuan
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Semiannual period of 2020
Owner's equity attributable to the parent company
Other equity instruments
Items Spec Gener
Less: Other Total owners'
Pref Perp Minority equity
Capital ial Surplus al risk Undistributed Othe
Share capital erred etual treasury comprehensi Subtotal equity
Others reserves reser reserves provisi profit rs
shar bond shares ve income
ve on
es s
I. Ending balance of last
1,018,775,769.00 104,535,879.24 456,556,282.32 60,009,612.52 -3,059,762.06 127,284,211.74 866,301,932.11 2,510,384,699.83 124,782,540.90 2,635,167,240.73
year
Plus: Changes in
accounting policies
Early error correction
Merger of enterprises
under the same control
Others
II. Balance at the
beginning of the current 1,018,775,769.00 104,535,879.24 456,556,282.32 60,009,612.52 -3,059,762.06 127,284,211.74 866,301,932.11 2,510,384,699.83 124,782,540.90 2,635,167,240.73
year
III. Amount of increase or
decrease in the current
12,036,415.00 -21,976.27 37,931,231.49 20,008,353.16 -5,441,663.04 0.00 158,114,968.70 182,610,622.72 8,035,979.92 190,646,602.64
period (decrease marked
with "-")
(I) Total comprehensive
-5,441,663.04 208,913,599.16 203,471,936.12 12,097,380.07 215,569,316.19
income
(II) Capital invested and
12,036,415.00 -21,976.27 37,108,916.43 20,008,353.16 29,115,002.00 29,115,002.00
reduced by owners
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1.Ordinary shares invested
12,014,700.00 39,748,172.38 51,762,872.38 51,762,872.38
by owners
2.Capital contributed by
holders of other equity 21,715.00 -21,976.27 98,540.52 98,279.25 98,279.25
instruments
3.Amount of share-based
payment included in 4,582,020.53 4,582,020.53 4,582,020.53
owner's equity
4.Others -7,319,817.00 20,008,353.16 -27,328,170.16 -27,328,170.16
(III) Profit distribution -50,798,630.46 -50,798,630.46 -4,061,400.15 -54,860,030.61
1.Withdrawal of surplus
reserve
2.Withdrawal of general
risk provision
3.Distribution to owners
-50,798,630.46 -50,798,630.46 -4,061,400.15 -54,860,030.61
(or shareholders)
4.Others
(IV) Internal carryover of
owner's equity
1.Conversion of capital
reserves to additional
capital (or share capital)
2.Conversion of surplus
reserves to additional
capital (or share capital)
3.Losses covered with
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surplus reserve
4.Change of defined
benefit plans carried
forward to retained
earnings
5.Other comprehensive
income carried forward to
retained earnings
6.Others
(V) Special reserve
1.Withdrawal in the
current period
2.Use in the current period
(VI) Others 822,315.06 822,315.06 822,315.06
IV. Ending balance of the
1,030,812,184.00 104,513,902.97 494,487,513.81 80,017,965.68 -8,501,425.10 127,284,211.74 1,024,416,900.81 2,692,995,322.55 132,818,520.82 2,825,813,843.37
current period
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8. Parent company's statement of changes in owner's equity
Current amount
Unit: Yuan
Semiannual period of 2021
Other equity instruments Other
Items Less: treasury Special Surplus Undistributed Othe
Share capital Preferre Perpetua Capital reserves comprehensiv Total owners' equity
Others shares reserve reserves profit rs
d shares l bonds e income
I. Ending balance of last year 1,135,216,809.00 1,007,315,299.41 80,017,965.68 5,569,575.04 151,331,439.07 805,337,794.69 3,024,752,951.53
Plus: Changes in accounting policies
Early error correction
Others
II. Balance at the beginning of the
1,135,216,809.00 1,007,315,299.41 80,017,965.68 5,569,575.04 151,331,439.07 805,337,794.69 3,024,752,951.53
current year
III. Amount of increase or decrease in
the current period (decrease marked 103,037,863.00 1,003,519,387.80 -252,583.99 167,700,623.99 1,274,005,290.80
with "-")
(I) Total comprehensive income -252,583.99 224,266,148.44 224,013,564.45
(II) Capital invested and reduced by
103,037,863.00 976,663,746.46 1,079,701,609.46
owners
1.Ordinary shares invested by owners 103,037,863.00 982,896,579.72 1,085,934,442.72
2.Capital contributed by holders of
other equity instruments
3.Amount of share-based payment
-6,232,833.26 -6,232,833.26
included in owner's equity
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4.Others
(III) Profit distribution -56,565,524.45 -56,565,524.45
1.Withdrawal of surplus reserve
2.Distribution to owners (or
-56,565,524.45 -56,565,524.45
shareholders)
3.Others
(IV) Internal carryover of owner's
equity
1.Conversion of capital reserves to
additional capital (or share capital)
2.Conversion of surplus reserves to
additional capital (or share capital)
3.Losses covered with surplus reserve
4.Change of defined benefit plans
carried forward to retained earnings
5.Other comprehensive income carried
forward to retained earnings
6.Others
(V) Special reserve
1.Withdrawal in the current period
2.Use in the current period
(VI) Others 26,855,641.34 26,855,641.34
IV. Ending balance of the current period 1,238,254,672.00 2,010,834,687.21 80,017,965.68 5,316,991.05 151,331,439.07 973,038,418.68 4,298,758,242.33
Amount of the previous period
Unit: Yuan
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Semiannual period of 2020
Other equity instruments
Pref Other Specia
Items Perp
erre Less: treasury comprehe l Undistributed Othe
Share capital etual Capital reserves Surplus reserves Total owners' equity
d Others shares nsive reserv profit rs
bond
shar income e
s
es
I. Ending balance of last year 1,018,775,769.00 104,535,879.24 457,944,801.38 60,009,612.52 127,255,693.28 639,454,712.99 2,287,957,243.37
Plus: Changes in accounting policies
Early error correction
Others
II. Balance at the beginning of the current
1,018,775,769.00 104,535,879.24 457,944,801.38 60,009,612.52 127,255,693.28 639,454,712.99 2,287,957,243.37
year
III. Amount of increase or decrease in the
12,036,415.00 -21,976.27 37,931,231.45 20,008,353.16 52,328,964.50 82,266,281.52
current period (decrease marked with "-")
(I) Total comprehensive income 103,127,594.95 103,127,594.95
(II) Capital invested and reduced by
12,036,415.00 -21,976.27 37,108,916.39 20,008,353.16 29,115,001.96
owners
1.Ordinary shares invested by owners 12,014,700.00 39,748,172.38 51,762,872.38
2.Capital contributed by holders of other
21,715.00 -21,976.27 98,540.52 98,279.25
equity instruments
3.Amount of share-based payment
4,582,020.49 4,582,020.49
included in owner's equity
4.Others -7,319,817.00 20,008,353.16 -27,328,170.16
(III) Profit distribution -50,798,630.45 -50,798,630.45
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1.Withdrawal of surplus reserve
2.Distribution to owners (or shareholders) -50,798,630.45 -50,798,630.45
3.Others
(IV) Internal carryover of owner's equity
1.Conversion of capital reserves to
additional capital (or share capital)
2.Conversion of surplus reserves to
additional capital (or share capital)
3.Losses covered with surplus reserve
4.Change of defined benefit plans carried
forward to retained earnings
5.Other comprehensive income carried
forward to retained earnings
(V) Special reserve
1.Withdrawal in the current period
2.Use in the current period
(VI) Others 822,315.06 822,315.06
IV. Ending balance of the current period 1,030,812,184.00 104,513,902.97 495,876,032.83 80,017,965.68 127,255,693.28 691,783,677.49 2,370,223,524.89
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III. Basic information of the Company
(I) Basic information of the Company
Registered Chinese name of the Company: 深圳拓邦股份有限公司
Address: Room 413, Area B, Tsinghua University Research Institute, High-tech Industrial Park, Yuehai
Street, Nanshan District, Shenzhen
Legal representative: Wu Yongqiang
Registered capital: 1,135,216,809.00 yuan
Share capital: 1,135,216,809.00 yuan
Company type: company limited by shares (listing)
Business scope: intelligent control of electrical products, intelligent power supply and control, high
efficiency lighting products and its control, high efficiency precision motor and control research and development,
production and sales.
Business term: sustainable operation
Unified social credit code: 91440300192413773Q
(II) Historical development of the Company
Shenzhen Topband Co., Ltd. (hereinafter referred to as “the Company” or “Company”) formerly known as
Shenzhen Topband Electronic Equipment Co., Ltd., is a limited liability company approved by Shenzhen
Administration for Industry and Commerce on February 9, 1996. It has obtained the business license of enterprise
legal person with the registration number of 19241377-3 and the registered capital of 2 million yuan.
On May 19, 1997, the registered capital of Shenzhen Topband Electronic Equipment Co., Ltd. was increased
to 3.2 million yuan after the resolution of the Shareholders’ Meeting of Shenzhen Topband Electronic Equipment
Co., Ltd. and approved by Shenzhen Administration for Industry and commerce.
On January 10, 2001, with the resolution of the Shareholders’ Meeting of Shenzhen Topband Electronic
Equipment Co., Ltd. and the approval of Shenzhen Administration for Industry and Commerce (Shenzhen) name
change NZ [2001] No. 0154224 Enterprise Name Change Approval Notice, it was agreed to change the name of
Shenzhen Topband Electronic Equipment Co., Ltd. to Shenzhen Topband Electronic Technology Co., Ltd.
On July 15, 2002, with the approval of SFG (2002) No. 24 issued by Shenzhen Municipal People’s
Government, it was agreed that Shenzhen Topband Electronic Technology Co., Ltd. would be reorganized into a
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joint stock limited company jointly by five shareholders, namely Wu Yongqiang, Ji Shuhai, Zhuhai Tsinghua
Science and Technology Park Venture Capital Co., Ltd., Qi Hongwei and Li Xianqian. After the reorganization,
the total share capital of the Company is 21 million yuan. Shenzhen Pengcheng Accounting Firm issued the
Capital Verification Report (SPSYZ (2002) No. 67) to verify the share capital of the Company. On August 16,
2002, the Company was approved by Shenzhen Administration for Industry and Commerce to register the change
of industry and commerce, in exchange for the business license of enterprise legal person with Registration No.
4403012049338. The business period is from February 9, 1996 to February 9, 2046.
On November 23, 2004, the registered capital of the Company was increased to 22.8 million yuan upon the
resolution of the Shareholders’ Meeting and the document of Shenzhen Municipal People’s Government “SFG
[2004] No. 38” and approved by Shenzhen Administration for Industry and Commerce.
On March 15, 2006, the registered capital of the Company was increased to 31.92 million yuan upon the
resolution of the Shareholders’ Meeting of the Company, and change in the industrial and commercial registration
was handled on July 24, 2006.
On June 26, 2007, the Company issued 18.08 million yuan ordinary shares (face value of each share is 1
yuan) to the public with an increase of registered capital of 18.08 million yuan, and the registered capital after the
change is 50 million yuan by the approval of “ZJH No. 2007135” Notice on Approving the Initial Public Offering
of Shenzhen Topband Electronic Technology Co., Ltd. by China Securities Regulatory Commission. The
investment business has been verified by Shenzhen Pengcheng Accounting Firm Co., Ltd. and the capital
verification report SPSYZ [2007] No. 059 has been issued.
On August 29, 2008, according to the resolution of the Annual General Meeting of Shareholders in 2008, the
Company increased the registered capital by 50 million yuan with capital reserve, and the registered capital after
the change was 100 million yuan. The capital increase has been verified by Shenzhen Pengcheng Accounting
Firm Co., Ltd., and the capital verification report SPSYZ [2008] No. 179 has been issued.
The 3rd Board of Directors of the Company deliberated and approved the Plan on the Distribution of
Mid-term Profits in 2009 at the 6th meeting in 2009: Based on the total share capital of the Company at the end of
the reporting period of 100 million shares, 4 shares were added in share capitals per 10 shares for all shareholders
regarding the capital reserves, and the total share capital increased by 40 million shares. After the increase by
conversion, the total share capital of the Company increased from 100 million shares to 140 million shares.
On April 7, 2010, the Company held a meeting of the Board of Directors to deliberate and approve the profit
distribution plan for 2009: Based on the total share capital of 140 million shares as of December 31, 2009, the
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Company will pay cash dividends of 1.50 yuan (tax included) per 10 shares, and based on the total share capital of
140 million shares as of December 31, 2009, 2 shares will be added per 10 shares. After the increase by
conversion, the total share capital of the Company increased from 140 million shares to 168 million shares.
The Company held the 2nd meeting of the 4th Board of Directors in 2012 on March 26, 2012, deliberated
and approved the profit distribution plan for 2011: Based on the total share capital 168 million shares of the
Company on December 31, 2011, 2 shares were additionally given to all shareholders for every 10 shares, and
cash dividend of 2 yuan (tax included) was distributed. 1 share was added per 10 shares for all shareholders
regarding the capital reserves. The equity distribution was completed on May 4, 2012. After the increase by
conversion, the total share capital of the Company increased from 168 million shares to 218.4 million shares.
According to the resolutions of 1st Extraordinary General Meeting of Shareholders of the Company in 2014,
after the approval of ZJXK [2014] No. 1425 of China Securities Regulatory Commission, the Company’s
non-public offering did not exceed 36,935,679 new shares. On February 5, 2015, the Company privately issued
23,521,768 ordinary shares (A shares) in RMB to specific investors at the price of 13.63 yuan per share. After the
issuance, the registered capital of the Company was increased to 241,921,768.00 yuan.
According to the Revised Draft of the Second Option Incentive Plan (Draft) of Shenzhen Topband Co., Ltd.
reviewed and approved by the Company in 2012 Annual General Meeting of Shareholders and the Proposal on the
Second Exercise Period of the Second Phase Stock Option Incentive Plan Meeting with the Exercise Conditions
and Exercisable Rights, which was deliberated and approved by the 9th Meeting of the 5th Board of Directors of
the Company, the total exercise was 3,101,700 stock options in 2015, exercise price was 5.72 yuan each. After
exercise, the registered capital of the Company was increased to 245,023,468.00 yuan.
According to the Restricted Stock Incentive Plan (Draft) of Shenzhen Topband Co., Ltd. in 2015 approved
by the 2nd Extraordinary General Meeting of Shareholders in 2015 and the Proposal on Adjusting the Number of
Restricted Stock Incentive Plans Granted and List of Incentive Objects approved at the 18th Meeting of the 5th
Board of Directors, the Company granted 359 incentive objects restricted shares 17.633 million shares. The
registered capital of the Company was increased to 262,656,468.00 yuan after the issuance.
According to the resolution of the 3rd Extraordinary General Meeting of Shareholders of the Company in
2015, and approved by the Reply to the Approval of Non-public Development of Shares of Shenzhen Topband
Co., Ltd. issued by China Securities Regulatory Commission (ZJXK [2016] No. 205), the Company non-publicly
issued 35,864,345 ordinary shares (A shares) in RMB to specific investors on March 28, 2016, with the issuance
price of 16.66 yuan per share. The registered capital of the Company was increased to 298,520,813.00 yuan after
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the issuance.
According to the Revised Draft of the Second Phase Stock Option Incentive Plan (Draft) of Shenzhen
Topband Co., Ltd. deliberated and approved by the 2012 Annual General Meeting of Shareholders of the
Company and the Proposal on the Third Exercise Period of the Second Phase Stock Option Incentive Plan
Meeting Exercise Conditions and Exercisable Rights deliberated and approved by the 23rd Meeting of the 5th
Board of Directors of the Company, a total of 4,594,000 shares were exercised in 2016. After exercise, the
registered capital of the Company was increased to 303,114,813.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and
approved by the 24th meeting of the 5th Board of Directors of the Company held on April 26, 2016, as for the
incentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentive
object, those 72,000 restricted stocks that have not been unlocked held by the incentive object were repurchased
and cancelled. After cancellation, the registered capital of the Company was reduced to 303,042,813.00 yuan.
The Company held the 2015 Annual General Meeting of Shareholders on May 11, 2016 and approved the
2015 annual equity distribution plan. Based on the Company’s current total share capital of 301,520,013 shares,
the Company distributed 1.50 yuan to all shareholders for every 10 shares. At the same time, the Company
increased 5 shares to all shareholders for every 10 shares with the capital accumulation fund, and the capital
increased by 150,760,006 yuan. After the capital was increased, the Company’s registered capital was increased to
453,802,819.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and
approved by the 28th Meeting of the 5th Board of Directors of the Company held on October 26, 2016, as for the
incentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentive
object, those 331,500 shares of restricted stocks that have not been unlocked held by the incentive object were
repurchased and cancelled. After cancellation, the registered capital of the Company was reduced to
453,471,319.00 yuan.
The 2016 Annual General Meeting of Shareholders of the Company was held on April 11, 2017, and the
2016 annual equity distribution plan was approved. Based on the Company’s existing total share capital of
453,471,319 shares, the Company distributed 1.50 yuan in cash to all shareholders for every 10 shares. At the
same time, the Company increased 5 shares to all shareholders for every 10 shares with the capital accumulation
fund, and the capital increased by 226,735,659 yuan. After the capital increased, the registered capital of the
Company was increased to 680,206,978.00 yuan.
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According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and
approved by the 32nd meeting of the 5th Board of Directors of the Company held on June 13, 2017, as for the
incentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentive
object, the 346,500 restricted stocks that have not been unlocked held by the incentive object were repurchased
and cancelled. After cancellation, the registered capital of the Company was reduced to 679,860,478.00 yuan.
The Company held the 2017 Annual General Meeting of Shareholders on April 17, 2018 to review and
approve the 2017 equity distribution plan. Based on the existing total capital of 679,860,478 shares, the Company
sent 1.0 yuan in cash to all shareholders every 10 shares, and transferred 5 shares to all shareholders with the
capital accumulation fund, and the capital increased by 339,930,239.00 yuan. After the capital conversion, the
registered capital of the Company was increased to 1,019,790,717.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and
approved by the 6th Meeting of the 6th Board of Directors of the Company held on July 27, 2018, as for the
incentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentive
object, the 744,186 restricted stocks that have not been unlocked held by the incentive object were repurchased
and cancelled. After cancellation, the registered capital of the Company was reduced to 1,019,046,531.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and
approved by the 6th Meeting of the 6th Board of Directors of the Company held on July 27, 2018, as for the
incentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentive
object, the 744,186 restricted stocks that have not been unlocked held by the incentive object were repurchased
and cancelled. After cancellation, the registered capital of the Company was reduced to 1,019,046,531.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and
approved by the 15th Meeting of the 6th Board of Directors of the Company held on July 26, 2019, as for the
incentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentive
object, the 310,800 restricted stocks that have not been unlocked held by the incentive object were repurchased
and cancelled. After cancellation, the registered capital of the Company was reduced to 1,018,735,692 yuan. With
the approval of “SZS [2019] No. 164” issued by Shenzhen Stock Exchange, the Company’s 573 million yuan
convertible corporate bonds will be listed and traded in Shenzhen Stock Exchange from April 8, 2019. Since
September 16, 2019, bondholders can exercise the right to transfer shares. As of December 31, 2019, the
Company has transferred 2,223.00 shares of bonds and increased the share capital by 40,077.00 yuan. After the
share transfer, the registered capital of the Company will increase to 1,018,775,769.00 yuan.
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The 22nd Meeting of the 6th Board of Directors deliberated and approved the Proposal on the First Exercise
Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and Proposal
on Adjustment of the Incentive Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan:
there are 606 incentive objects in the first exercise period of the 2018 stock option incentive plan in the Company,
in total of 12,014,700 shares of stock options, that meet the exercise conditions and can be exercised. The
Company plans to adopt the independent exercise mode. As of December 31, 2020, 606 incentive objects in the
first exercise period had completed the exercise of 12,014,700 stock options, increased the Company’s share
capital by 12,014,700 yuan, and the share capital increased to 1,030,790,469.00 yuan after the exercise of the
stock options.
According to the document of “SZS [2019] No. 164” by the Shenzhen Stock Exchange, the Company’s
convertible corporate bonds of 573 million yuan are listed and traded on Shenzhen Stock Exchange from April 8,
2019. Since September 16, 2019, the bondholders can exercise the equity transfer. In 2020, a total of 5,712,224.00
bonds were converted into shares, increasing the share capital by 104,426,340.00 yuan. After the conversion, the
registered capital of the Company was increased to 1,135,216,809.00 yuan.
The 6th Meeting of the 7th Board of Directors deliberated and approved the Proposal on the Second Exercise
Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and Proposal
on Adjustment of the Incentive Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan:
there are 567 incentive objects in the second exercise period of the 2018 stock option incentive plan in the
Company, in total of 10,950,600 shares of stock options, that meet the exercise conditions and can be exercised.
The Company plans to adopt the independent exercise mode. As the incentive objects Cheng Xuejing and Lin
Qiao resigned and left the Company for personal reasons, 80,500 stock options granted but not exercised shall not
be exercised and shall be uniformly canceled by the Company. The procedures such as the review of the
adjustment of the number of such options will be performed later. As of June 30, 2021, a total of 10.9326 million
stock options were exercised by 565 incentive objects in the second exercise period, increasing the Company's
share capital by 10.9326 million yuan. After the exercise of the stock options, the share capital increased to
1,146,149,409.00 yuan.
According to the resolution of the 2019 Annual General Meeting of Shareholders held by the Company in
2020 and based on the approval in the CSRC's document numbered ZJXK [2020] No. 1865, the Company
privately issued not more than 309,243,655 new shares. On May 20, 2021, the Company privately issued
92,105,263 ordinary shares (A shares) in RMB to specific investors at the price of 11.40 yuan per share. After the
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issuance, the registered capital of the Company was increased to 1,238,254,672.00 yuan.
(III) Submission of financial report
The financial report is approved and submitted by the Board of Directors of the Company on July 26, 2021.
From January to June 2021, there are 30 subsidiaries and sub-subsidiaries of the Company included in the
scope of merger. For details, please refer to Interests in Other Entities in Note 9.The merger scope of the
Company in the reporting period increased by 6 compared with that in the previous year. For details, please refer
to Note 8 "Changes in the Scope of Consolidation".
IV. Preparation basis of the financial report
1. Preparation basis
The financial statements are based on the assumption of continuation of the Company, according to the
actual transactions, in accordance with the relevant provisions of the accounting standards for business enterprises,
and based on the following important accounting policies and accounting estimates.
2. Continuation
The Company has no major doubt on the ability of continuation and other influencing factors for 12 months
since the end of the reporting period.
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
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requirements of the latest accounting standards for business enterprises and its application guidelines,
interpretations as well as other relevant provisions (collectively referred to as “accounting standards for business
enterprises”) issued by the Ministry of Finance.
Additionally, the presentation and disclosure requirements of the No. 15 Rules for the Preparation and
Presentation of Information Disclosure of Companies Offering Securities to the Public - General Provisions on
Financial Reporting (revised in 2014) (hereinafter referred to as “No. 15 Document (revised in 2014)”) and the
Notice on Matters Related to the Implementation of the New Accounting Standards for Business Enterprises by
Listed Companies (No. 453 letter from Accounting Department [2018]) were taken as reference in these financial
statements.
2. Accounting period
The accounting period of the Company is divided into an annual period and an interim period, and an interim
period refers to the reporting period shorter than a complete accounting year. The financial year of the Company
adopts the Gregorian calendar year, that is, from January 1 to December 31 every year.
3. Operating cycle
The operating cycle of the Company is from January 1 to December 31 of the Gregorian calendar.
4. Recording currency
RMB is the currency of the main economic environment in which the Company and its domestic subsidiaries
operate, so the Company and its domestic subsidiaries use RMB as the recording currency. The recording
currency for the foreign subsidiaries of the Company shall be determined in accordance with the currency of the
main economic environment in which they operate. These financial statements of the Company are stated in
RMB.
5. Accounting treatment for business combination under and not under common control
The Company, at the date of acquisition, recognizes the difference of the combination cost greater than the
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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 business combination under different control realized step by step through multiple transactions shall be
treated as follows:
1. Adjusting the initial investment cost of long-term equity investment. If the equity held before the
acquisition date is calculated with the equity method, it shall be re-measured as per the fair value of the equity at
the date of acquisition, and the difference between the fair value and its book value shall be included in the current
investment income; if the equity of the Acquiree held before the acquisition date involves changes in other
comprehensive income and other 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 re-measured by the investee.
2. Recognizing goodwill (or amount included in the current profits and losses).The initial investment cost of
long-term equity investment after the first step adjustment is compared with the fair value share of net identifiable
assets of subsidiaries at the date of acquisition. If the former is greater than the latter, the difference is recognized
as goodwill, otherwise, it is included in the current profits and losses.
The situation of disposing equity step by step through multiple transactions to losing control over
subsidiaries:
1. Judging whether the transactions in the process of disposing equity step by step to losing control over
subsidiaries belong to the principle of “package transaction”
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
should be accounted for as a package transaction:
(1) These transactions were concluded simultaneously or with consideration of mutual influence;
(2) These transactions as a whole can achieve a complete business outcome;
(3) The occurrence of a transaction depends on the occurrence of at least one other transaction;
(4) A transaction is not economical by itself, but it is economical when considered in conjunction with other
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transactions.
2. Accounting treatment for transactions in the process of disposing equity step by step to losing control over
subsidiaries belonging to “package transaction”
If the transactions relating to disposal of equity investment in subsidiaries to losing control over subsidiaries
belong to “package transaction”, these shall be treated as a transaction for disposing the subsidiary and losing
control; however, the difference between the price of every disposal and the net assets share held in the subsidiary
corresponding to the disposal of investment before losing control shall be recognized as other consolidated
income in the consolidated financial statements, which shall be transferred to the current profits and losses at the
time of losing control.
In the consolidated financial statements, the remaining equity shall be re-measured according to its fair value
on the date of losing control. The difference between the sum of consideration obtained from equity disposal and
fair value of remaining equity less the net assets share held in original subsidiary and continuously calculated
from the date of acquisition as per the original shareholding proportion 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 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 losing control over the investment in a subsidiary, the remaining equity shall be re-measured
according to its fair value on the date of loss of control in the consolidated financial statements. 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 proportion 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 at the time of losing control.
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6. Compiling method of consolidated financial statements
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.
During the combination, the internal equity investment and the owner’s equity of the subsidiaries, the
internal investment income and the profit distribution of the subsidiaries, the internal transactions, the internal
claims and debts are offset. The accounting policies adopted by the subsidiaries shall be consistent with those
adopted by the parent company.
7. 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 applicable 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
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operation as per its share; (5) recognize the expenses incurred separately and those incurred in the joint operation
as per its share.
The parties of a joint venture shall make accounting treatment for the investment in the joint venture in
accordance with the Accounting Standards for Business Enterprises No.2 - Long-Term Equity Investment.
8. 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.
9. Foreign currency transaction and foreign currency statement translation
1. Foreign currency transaction conversion
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 “undistributed profit”, 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.
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10. Financial instruments
1. Recognition and de-recognition of financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to a financial
instrument contract.
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 satisfying the following conditions at the same time are classified as financial assets
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measured at amortized cost: The business model for managing such financial assets by the Company is to collect
contractual cash flows as the goal; the contract terms of the financial assets stipulate that the cash flow generated
on a specific date is only the payment of the principal and the interest based on the outstanding principal amount.
For such financial assets, the effective interest rate method is adopted, and subsequent measurement is made at
amortized cost, and the gains or losses arising from amortization or impairment are included in the current profits
and losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensive
income
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value through other comprehensive income: The business model for managing the financial
assets by the Company is to collect contractual cash flows and to sell financial assets; The contract terms of the
financial asset stipulate that the cash flow generated on a specific date is only the payment of the principal and the
interest based on the outstanding principal amount. 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 instrument 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
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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
The financial liabilities of the Company are classified at the initial recognition as follows: financial liabilities
measured at amortized cost and financial liabilities measured at fair value through current profits and losses.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities
measured at fair value through current profits and losses at the time of initial measurement: (1) such designation
can eliminate or significantly reduce accounting mismatch; (2) according to the company risk management or
investment strategy stated in formal written documents, the management and performance evaluation for the
financial liabilities portfolio or portfolio of financial assets and financial liabilities is conducted on the basis of fair
value, which is reported to key management personnel within the Company on this basis; (3) the financial
liabilities include embedded derivatives that need to be split separately.
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
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conducted as per the amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and losses
Financial liabilities measured at fair value through current profits and losses include trading financial
liabilities (including derivatives belonging to financial liabilities) and financial liabilities designated at initial
recognition as 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 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.
The Company, taking into account all reasonable and well founded information (including forward-looking
information) estimates the expected credit losses of financial assets measured at amortized cost and financial
assets (debt instruments) measured at fair value with changes included in other comprehensive income in a single
or combined way.
(1) Measurement of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the
Company measures its loss provision according to the amount equivalent to the expected credit loss of the
financial instrument in the whole duration; if the credit risk of the financial instrument has not increased
significantly since the initial recognition, the Company measures its loss provision according to the amount
equivalent to the expected credit loss of the financial instrument in the next twelve months. The increased or
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reversed amount of the loss provisions arising therefrom shall be included in the current profits and losses as
impairment losses or gains. The specific assessment of credit risk by the Company is detailed in the Note “9.
Risks Associated with Financial Instruments”.
Generally, if it is overdue for more than 30 days, the Company considers that the credit risk of the financial
instrument has increased significantly, unless there is conclusive evidence to prove that the credit risk of the
financial instrument has not increased significantly 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 impairment provision) and the actual interest rate (if the instrument is a financial asset, the same
below).
Second stage: the credit risk has increased significantly since the initial recognition, but the credit
impairment has not occurred
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration, and calculate the interest income as per its book
balance and the actual interest rate.
Third stage: credit impairment occurs after initial recognition
For the financial instrument at this stage, the enterprise should 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
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calculate the interest income as per its amortized cost and the effective interest rate adjusted by credit.
(2) For financial instruments with low credit risk on the balance sheet date, the Company directly assumes
that the credit risk of such instruments has not increased significantly since the initial recognition, while not
comparing them with the credit risk at the time of initial recognition.
A financial instrument may be considered to have a lower credit risk if the enterprise recognizes that the
financial instruments feature low default risk, the borrower is able to fulfill its obligations to pay the contractual
cash flow in the short term, and that even if there are adverse changes in economic situation and operating
environment over a longer period of time, it does not necessarily reduce the borrower’s ability to fulfill its
obligations to pay the contractual cash flow.
(3) 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
If the Company has transferred almost all risks and rewards in the ownership of financial assets to the
transferee, it shall terminate the recognition of the financial assets, and if it retains almost all risks and rewards in
the ownership of the financial assets, it shall not terminate the recognition of the financial assets.
If the Company neither transfers nor retains almost all the risks and rewards in the ownership of the financial
asset, the following conditions shall be referred to: if it gives up the control over the financial asset, it shall
terminate the recognition of the financial asset and recognize the assets and liabilities generated; if it does not
abandon the control over the financial asset, the relevant financial assets shall be recognized according to the
extent to which it continues to be involved in the transferred financial asset, and the relevant liabilities shall be
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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.
11. Notes receivable
The Company divides notes receivable into two portfolios of bank acceptance bills and commercial
acceptance bills by type of financial instrument. With respect to bank acceptance bills, the Company considers its
overdue default risk to be 0 for it has low overdue credit loss which has not significantly increased since the initial
recognition, because the acceptance bank pays the payee or holder a certain amount unconditionally when the bill
is due. In respect of commercial acceptance bills, the Company believes that the probability of default is
correlated with the aging, and the transfer provision shall be accrued according to the accounting estimate policy
of expected credit loss of above accounts receivable.
12. 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. The Company believes that the probability of default is
related to the aging, which is still a mark of whether the credit risk of the Company’s accounts receivable
increases significantly, after it has reviewed the appropriateness of the provision for bad debts receivable in
previous years based on the Company’s historical bad debt losses. Therefore, credit risk loss of the Company’s
accounts receivable is still estimated on the basis of aging according to the original loss ratio of previous years.
The accounting policies for measuring overdue credit loss of accounts receivable adopted by the Company are as
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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 1 million yuan.
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 impairment provision has been made separately, the Company
determines the proportion for following bad debt provision based on the actual loss rate of the portfolio of the
same or similar receivables in previous years with the aging of receivables as the credit risk feature and in
combination with the current situation:
Aging Estimated loss of accounts Estimated loss of other
receivable (note) receivables
Less than 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%
Over 5 years 100.00% 100.00%
Among which: those that have been determined to be Write off Write off
irrecoverable
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Note: when measuring the expected credit loss of receivables, the Company has referred to the historical
experience of credit loss and adjusted it based on the forward-looking estimates.
3. Receivables with not significant amount but with individual provision for bad debts
Reasons for individual provision for bad debts: the Company conducts a separate impairment test for the
receivables with the following characteristics, although its amount is not significant. If there is objective evidence
that the receivables are impaired, the impairment loss shall be recognized with provision for bad debts according
to the difference between the present value of future cash flow and the book value; receivables that are in dispute
with the other party or involved in litigation or arbitration; receivables that have obvious indications that the
debtor is likely to be unable to perform the repayment obligation, etc.
Method for bad debt provision: the impairment test shall be conducted separately. If there is objective evidence
that it has been impaired, the impairment loss shall be recognized with provision for bad debts according to the
difference between the present value of future cash flow and its book value.
13. Receivables financing
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value through other comprehensive income: The business model for managing the financial
assets by the Company is to collect contractual cash flows and to sell financial assets; The contract terms of the
financial asset stipulate that the cash flow generated on a specific date is only the payment of the principal and the
interest based on the outstanding principal amount.
If the Company transfers the receivables held by it in the form of discount or endorsement, which is frequent
and involves a large amount, and its management business mode is essentially the collection and sale of the
contractual cash flow, it is classified into financial assets whose changes are measured at fair value and included
in other comprehensive income in accordance with the accounting standards of financial instruments.
14. Other receivables
Recognition method and accounting treatment for expected credit loss of other receivables
The Company measures the impairment loss by an amount equivalent to the expected credit loss within the next
12 months or over the entire duration, depending on whether the credit risk of other receivables has increased
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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:
Items Basis for determining the portfolios
Risk-free portfolio This portfolio is a risk-free account receivable.
Aging portfolio The credit risk of the portfolio is characterized by the aging of
receivables.
15. Inventories
1. Classification of inventories
Inventories refer to the finished products or commodities held by a company for sale, the unfinished products
in the process of production and outsourced processing, and the materials and supplies consumed for production
or rendering of labor service in daily activities of the company.
The Company’s inventories mainly include raw materials (including auxiliary materials and wrappages),
outside processing materials, unfinished products, self-made semi-finished products, goods on hand and low value
consumables.
2. Valuation method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. The basis for determination of net realizable value of inventories and the method for calculation of
inventory revaluation reserves
On the balance sheet date, the inventories are measured at the lower of cost and net realizable value, and the
inventory revaluation reserves are calculated at the difference between the cost of inventory category and the net
realizable value. The net realizable value of the inventories ready for sale is determined at the estimated sale price
of such inventories minus the estimated sales expenses and relevant taxes during normal production and operation,
and that of the inventories to be processed is determined at the estimated sale price of the finished products minus
the costs, sales expenses and relevant taxes estimated to be incurred up to completion during normal production
and operation. On the balance sheet date, the net realizable values are determined separately and compared with
the corresponding costs to determine the amount of withdrawal or reversal of inventory revaluation reserve if a
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part of inventory is subject to the contractual price agreement and the rest is not.
Net realizable value refers to the amount of the estimated sale price of the inventories minus the costs, sales
expenses and relevant taxes estimated to be incurred up to completion in daily activities. For the provision of
inventory revaluation reserve, it is made based on a single inventory item for various inventories and in a
combined manner for the inventories which are related to the product line produced and sold in the same region,
difficult to be measured separately from other items and for the same or similar end use or purpose.
4. Inventory system
Perpetual inventory system is applied for the inventories.
5. Amortization method of low value consumables and wrappage
Both low value consumables and wrappage are amortized with one-off amortization method when they are
received.
16. Contractual assets
None
17. Contract costs
None
18. Assets held for sale
The Company classifies corporate components (or non-current assets) that meet the following conditions as
the assets held for sale: (1) The corporate components can be sold immediately under current background in
accordance with the practice of sales of such assets or disposal portfolio in similar transactions; (2) The sale is
very likely to take place and expected to be completed within one year since a resolution has been made on a sale
plan and a definite purchase commitment has been obtained (definite purchase commitment refers to a legally
binding purchase agreement that is signed by a company with other parties and indicates the important clauses
with respect to the transaction price, time and severe penalties for breach of contract to minimize the possibility of
major adjustment or revocation of the agreement.).It has been approved by the relevant authority or regulators in
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accordance with relevant regulations.
The Company adjusted the estimated net residual value of the asset held for sale to the net amount (not more
than the original book value of such asset held for sale) reflecting its fair value minus the sales expenses. If the
original book value is higher than the adjusted estimated net residual value, the difference between the two was
deemed as the asset impairment loss and included in the current profits and losses, and the provision for
impairment of assets held for sale shall be made. For the amount of asset impairment loss recognized for the
disposal portfolio held for sale, it is necessary to offset the book value of goodwill in the disposal portfolio and
then offset the book value of the specified non-current assets in the disposal portfolio applicable for being
measured in accordance with the Standard in proportion.
If the net amount of the fair value of the non-current assets held for sale minus the sales expenses increases
on the subsequent balance sheet date, the amount written-down previously shall be recovered and reversed within
the amount of asset impairment loss recognized after such non-current assets are classified as the assets held for
sale. The reversed amount shall be included in the current profits and losses. The asset impairment loss recognized
before such non-current assets are classified as the assets held for sale shall not be reversed. If the net amount of
the fair value of the disposal portfolio held for sale minus the sales expenses increases on the subsequent balance
sheet date, the amount written-down previously shall be recovered and reversed within the amount of impairment
loss recognized for the non-current assets applicable for being measured in accordance with the Standard after
such disposal portfolio is classified as the assets held for sale. The reversed amount shall be included in the
current profits and losses. It is not allowed to reverse the book value of the goodwill that has been written down
and the impairment loss recognized for the non-current assets applicable for being measured in accordance with
the Standard before such assets are classified as the assets held for sale. The book value of the subsequently
reversed amount of the asset impairment loss recognized for the disposal portfolio held for sale shall be increased
according to the proportion of the book value of non-current assets applicable for being measured in accordance
with the Standard except for the goodwill in the disposal portfolio.
If the Company loses control over its subsidiary for some reasons such as the sale of its investment into its
subsidiary, it shall classify the entire investment into its subsidiary as the assets held for sale in the individual
financial statement of the parent company and classify all assets and liabilities of the subsidiary as the assets held
for sale in the consolidated financial statements provided that the investment into its subsidiary to be sold meets
the conditions for classification of assets held for sale.
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19. Debt investment
None
20. Other debt investment
None
21. Long-term receivables
None
22. Long-term equity investment
1. Determination of investment cost
(1) If the investment cost is incurred in business combination under the same control in which case the
combining party pays the combination consideration in cash, by transferring the non-cash assets, undertaking the
debts or issuing the equity securities, the initial investment cost shall be determined on the basis of the share of the
owner's equity of the combined party in the book value of the ultimate controlling party's consolidated financial
statements on the combination date. For the difference between the initial investment cost of long-term equity
investment and the book value of the consideration paid for combination or the total face value of the issued
shares, the capital reserve (capital premium or share premium shall be adjusted). If the capital reserve is
insufficient to be offset, the retained earnings shall be adjusted.
If a business combination 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 business combination under different control, the initial investment
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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 business combination: 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 profit and loss
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 profit, 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.
When the equity method is applied, the profit and loss on investment shall be recognized and the book value
of the long-term equity investment shall be adjusted according to share of the net profit and loss that should 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
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investment shall be reduced accordingly. The Company recognizes the net loss incurred by the investee to the
extent that the book value of the long-term equity investment and other long-term equity substantially constituting
the net investment into the investee are written down to zero, unless the Company is liable for extra 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 profit and loss 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 investment
(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 profit in case of partial disposal of long-term equity investments into
subsidiaries without loss of control.
(2) Loss of control over subsidiaries due to partial disposal of long-term equity investments or other reasons
If the control over the subsidiaries is lost due to partial disposal of long-term equity investments or other
reasons, the book value of the long-term equity investment corresponding to the sold equity shall be carried
forward for the disposed equity, and the difference between the sales price and the book value of the disposed
long-term equity investment shall be recognized as investment profit (loss). In addition, the remaining equity shall
be recognized as long-term equity investment or other related financial assets at its book value. The remaining
equity after disposal that has joint control or significant influence on the subsidiaries shall be subject to the
accounting treatment in accordance with the relevant regulations on the conversion from the cost method to the
equity method.
5. Methods for impairment test and provision of impairment reserve
If there is any objective evidence showing that the investments into subsidiaries, associated enterprises and
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joint ventures are impaired on the balance sheet date, the provision of impairment reserve shall be made
accordingly based on the difference between the book value and the recoverable amount.
23. Investment real estate
Measurement model of investment real estate
Measurement with cost method
Depreciation or amortization method
1. Investment real estate includes leased land use rights, land use rights held and ready to be assigned after
appreciation, and leased buildings.
2. Investment real estate is measured initially at cost and subsequently with cost model. The provision for
depreciation and amortization of the investment real estate are made in the way as used for fixed assets and
intangible assets. If there is any sign showing that the investment real estate is impaired on the balance sheet date,
the provision of impairment reserve shall be made accordingly based on the difference between the book value
and the recoverable amount.
The Company applied the cost model to subsequent measurement of investment real estate, and depreciated
or amortized it in accordance with the policy as used for the buildings or land use rights.
See Note III (21) "Long-term assets impairment" for details of the methods for impairment test and provision
of impairment reserve applicable to investment real estate.
If the real estate for private use or inventory is converted to an investment real estate or the investment real
estate 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 real estate is changed to private use, this investment real estate shall be
converted into a fixed or intangible asset from the date of change. If the purpose of a real estate is changed to rent
gains or capital appreciation from private use, the fixed asset or intangible asset shall be converted into an
investment real estate from the date of change. If any asset is converted into an investment real estate 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 real estate measured with the fair value model, the fair value on the
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conversion date shall be deemed as the entry value after the conversion.
An investment real estate shall be de-recognized if this investment real estate 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 real estate 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
The fixed assets of the company refer to the tangible assets that are held for production of goods, rendering
of labor services, and leasing or operating management and have a useful life of more than one fiscal year. Fixed
assets shall be recorded at the actual cost upon the acquisition and subject to the provision for straight-line
depreciation from the next month following the date when they are ready for use as intended.
The straight-line method shall be used to calculate the depreciation of the fixed assets of the company, and
the service life and depreciation methods of the fixed assets shall be checked at the end of each year based on the
estimated net residual value and service life of various types of fixed assets. If there is a significant variance with
the estimation, adjustment shall be made accordingly. If the provision for impairment is not considered, the
depreciable life and the yearly depreciation, according to the type, estimated economic useful life and estimated
net residual value of the fixed assets, shall be determined respectively as follows:
(2) Depreciation method
Category Depreciation method Depreciable life Residual rate Yearly depreciation
Houses and buildings Straight-line method 20-40 years 5.00 2.375-4.75
Machinery and equipment Straight-line method 10 years 5.00 9.50
Transportation equipment Straight-line method 5 years 5.00 19.00
Molds Straight-line method 5 years 5.00 19.00
Electronic equipment and other equipment Straight-line method 5 years 5.00 19.00
If the provision for impairment is considered, the depreciation during each period shall be determined and
calculated according to the book value of a single fixed asset minus provision for impairment and the remaining
depreciable life. If there is any sign showing that a fixed asset is impaired on the balance sheet date, the provision
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for impairment shall be made accordingly at the difference between the book value and the recoverable amount.
(3) Basis for recognition, valuation and depreciation method of fixed assets under financing lease
Financing lease will be recognized if one or more of following criteria is or are met: ① The ownership of
the leased asset is transferred to the lessee at the expiration of the lease term; ② It can be reasonably determined
that the lessee will exercise the option at the start of the lease since the lessee has such option to purchase the
leased asset and the agreed purchase price is expected to be much lower than the fair value of the leased asset
when the option is exercised; ③ The lease term accounts for most of the service life of the leased asset
[generally, it accounts for more than 75% (including 75%)] of the service life of the leased asset even if the
ownership of the asset will not be transferred; ④ The present value of the minimum lease payment made by the
lessee on the start date of lease is almost equivalent to the fair value [90% and above (including 90%)] of the
leased asset on the start date of lease; the present value of the minimum lease payment received by the lessor on
the start date of lease is almost equivalent to the fair value [90% and above (including 90%)] of the leased asset on
the start date of lease; ⑤ The leased asset is of a special nature and will be only used by the lessee if no major
transformation is made. The fixed assets under financing lease shall be recorded at the lower of the fair value of
the leased assets on the start date of lease and the present value of the minimum lease payment and shall be
subject to provision for depreciation in accordance with the depreciation policy of self-owned fixed assets.
25. Construction in progress:
1. The construction in progress shall be transferred to fixed assets at the actual cost of the project when it is
ready for use as intended. If a product under construction has been ready for use as intended but has not
undergone final settlement of account, this project shall be transferred to fixed assets at the estimated value first.
After final settlement of account is made, the original temporary estimated value shall be adjusted according to the
actual cost without adjustment of depreciation previously accrued.
2. If there is any sign showing that a project under construction is impaired on the balance sheet date, the
provision for impairment shall be made accordingly at the difference between the book value and the recoverable
amount.
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26. Borrowing costs
1. Recognition principle for capitalization of borrowing costs
The borrowing costs of the company that can be directly attributable to the acquisition, construction or
production of assets that meet the conditions for capitalization shall be capitalized and included in the cost of the
relevant assets, and other borrowing costs shall be recognized as expenses at the time of occurrence and included
in the current profits and losses.
2. Period of capitalization of borrowing costs
(1) The borrowing costs shall be capitalized if they meet the following conditions: 1) Asset expenditures
have been incurred; 2) Borrowing costs have been incurred; 3) Acquisition, construction or production activities
necessary for the assets to reach the usable or marketable state as intended have begun.
(2) The capitalization of borrowing costs shall be discontinued if the acquisition, construction or production
of an asset that meets the conditions for capitalization is abnormally interrupted for more than 3 successive
months. The borrowing costs incurred during the period of interruption shall be recognized as current expenses
until the acquisition, construction or production of assets is resumed.
(3) The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets that
meet the conditions for capitalization reaches the intended usable or marketable state.
3. Capitalized amount of borrowing costs
If special borrowings are for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount of interest to be capitalized shall be determined as the interest expenses
actually incurred (including the amortization of discounts or premiums determined with the effective interest rate
method) in the current period of the special borrowing minus the interest income from the unused borrowings that
have been deposited in the bank or the profit from temporary investment by the unused borrowings. If general
borrowings are used for the purpose of purchase, construction or production of assets that meet the conditions for
capitalization, the amount of interest to be capitalized shall be determined as the weighted average of asset
expenditure with accumulated asset expenditure exceeding special borrowing multiplied by capitalization rate of
the general borrowing occupied.
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27. Biological assets
None
28. Oil and gas assets
None
29. Use right assets
On the beginning date of the lease term, the Company recognizes the right to use the leased asset within the
lease term as a use right asset, including: the initial measurement amount of the lease liability; for the lease
payment paid on or before the beginning date of the lease term, if there is lease incentive, the relevant amount of
lease incentive enjoyed shall be deducted; initial direct expenses incurred by the lessee; and the estimated cost to
be incurred by the lessee in dismantling and removing the leased asset, restoring the site where the leased asset is
located or restoring the leased asset to the state agreed in the lease terms. The Company subsequently makes
provision for the depreciation of the use right asset using the straight-line method. If there is reasonable certainty
that the lessee will obtain ownership of the leased assets when the lease term expires, the Company shall make
depreciation of leased assets over their remaining service life. 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 should be calculated
and withdrawn as depreciation over the shorter one of the lease term or the remaining service life by the Company.
When the Company remeasures the lease liability according to the present value of the changed lease payment and
adjusts the book value of the use right asset accordingly, if the book value of the use right asset has been reduced
to zero, but the lease liability still needs to be further reduced, the Company shall include the remaining amount in
the current profits and losses. For the impairment test method and impairment provision method of use right assets,
see Note 31: Long-term assets impairment.
30. Intangible assets
(1) Valuation method, service life and impairment test
1. Intangible assets include land usage right and software, and shall be initially measured at cost.
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2. Intangible assets with limited service life shall be systematically and reasonably amortized according to
the expected realization mode of economic benefits related within the service life, and in case the expected
realization mode cannot be reliably determined, the straight-line method shall be adopted for amortization.
The land usage right shall be averagely amortized within the remaining service life (generally 50 years), and
the software shall be averagely amortized within 3-5 years.
3. In case of evidence of impairment of intangible assets with defined service life on the balance sheet date,
corresponding provision for impairment shall be made according to the difference between the book value and the
recoverable amount; For intangible assets with uncertain service life and intangible assets that have not reached
the serviceable state, the impairment tests shall be carried out every year, whether there are signs of impairment or
not. Currently, the Company has no intangible assets with uncertain service life.
(2) Accounting policy of internal R&D expenditure
Research stage expenditures of internal R&D projects shall be included in the current profits and losses at the
time of occurrence. In case following conditions have been met at the same time, expenditure of internal R&D
projects in development stage shall be recognized as intangible assets: (1) It is technically feasible to complete the
intangible assets for adoption and sale; (2) There is the intention to complete the intangible assets for adoption and
sale; (3) There exist ways for intangible assets to generate economic benefits, including the evidence that there is a
market for products produced by using the intangible assets or for the intangible assets. If the intangible assets
will be used internally, it can be proved that they are useful; (4) There are sufficient technical, financial and other
resources to support the development of the intangible assets and to use or sell the intangible assets; (5)
Expenditure of the intangible assets in development stage can be measured reliably.
31. 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 business combination 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
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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 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 loss of asset impairment and included in the current profits and losses; besides,
corresponding provision for asset impairment shall be made at the same time.
32. 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
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losses.
33. Contractual liabilities
The Company shall list contractual assets or liabilities in the balance sheet based on the relationship between
the performance of obligations and customer payment. Obligation of the Company to transfer commodities or
provide services to customers for consideration received or receivable from customers shall be listed as
contractual liabilities.
34. Employee compensation
(1) Accounting treatment of short-term compensation
Employee compensation refers to various forms of remuneration or compensation provided by the Company
for obtaining services provided by employees or dissolving labor relations. Employee compensation includes
short-term compensation, post-employment benefits, dismissal benefits and other long-term employee benefits.
Benefits provided by the Company to employees’ spouses, children and dependants, family members of deceased
employees as well as other beneficiaries shall also be included in employee compensation.
Share-based payments issued by the enterprise to its employees shall also be included in employee
compensation, and shall be handled in accordance with relevant provisions of Accounting Standards for Business
Enterprises No.11- Share-based Payments.
The Company shall recognize actual short-term compensation as liabilities and include it in the current
profits and losses or related asset costs during the accounting period when employees provide services. Where,
non-monetary welfare shall be measured at fair value.
(2) Accounting treatment of post-employment benefits
(3) Accounting treatment of dismissal benefits
In case the Company terminates labor relationship with employees prior to the expiration of employee’s
labor contract, or offers compensation to encourage employees to accept the layoff voluntarily, it shall confirm the
compensation for termination of labor relationship with employees and include the compensation amount in the
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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.
Employees of the Company have accepted the social basic endowment insurance organized and implemented by
the local labor and social security departments. The Company shall pay endowment insurance premium to the
local agency handling with social basic endowment insurance on a monthly basis based on the payment base and
proportion of the local social basic endowment insurance. After employee retirement, the local labor and social
security department shall pay basic social pension to retired employees. The Company shall recognize amount to
be paid according to the above social security provisions as liabilities and include it into the current profits and
losses or related asset cost during the accounting period when employees provide services.
35. Lease liabilities
On the beginning date of the lease term, the Company recognizes the present value of the unpaid lease
payments as lease liabilities (except for short-term leases and low-value asset leases).When calculating the present
value of lease payments, the Company adopts the interest rate implicit in the lease as the discount rate; if the
interest rate implicit in the lease cannot be determined, the lessee's incremental loan interest rate shall be used as
the discount rate. The Company calculates the interest expense of the lease liability in each period of the lease
term according to the fixed periodic interest rate and includes it in the current profit and loss, unless it is otherwise
specified that it shall be included in the relevant asset cost. The amount of variable lease payments not included in
the measurement of lease liabilities shall be included in the current profit and loss when they actually occur,
unless it is otherwise specified that they shall be included in the relevant asset cost. After the beginning date of the
lease term, when the substantial fixed payment amount changes, the expected amount payable for the guaranteed
residual value changes, the index or ratio used to determine the lease payment amount changes, or the evaluation
result or actual exercise of the purchase option, renewal option or termination option changes, the Company shall
remeasure the lease liabilities according to the present value of the changed lease payments.
36. Estimated liabilities
None
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37. 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 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
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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, expenses and corresponding liabilities according to the best estimate of vesting rights and the fair
value of the liabilities undertaken 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 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 confirmed in the remaining waiting period shall be recognized immediately.
Share-based payment refers to the transaction of granting equity instruments or undertaking liabilities
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determined on the basis of equity instruments to obtain services provided by employees and other parties.
Share-based payment can be divided into equity-settled share-based payment and cash-settled share-based
payment
Equity-settled share-based payment in exchange for employee services shall be measured at the fair value of
equity instruments granted to employees. Cash-settled share-based payment shall be measured at the fair value of
the Company’s liabilities calculated and determined on the basis of shares or other equity instruments.
38. Preferred shares, perpetual bonds and other financial instruments
None
39. Revenue
Accounting policies adopted for revenue recognition and measurement
1. Revenue recognition
The Company’s revenue mainly includes sales revenue of intelligent controller, lithium battery, motor and
control system.
The Company has fulfilled performance obligation in the Contract, that is, recognizing revenue when the
customer obtains the control right of relevant commodities. Obtaining of the control right of relevant commodities
means to be able to dominate the use of the commodities and obtain almost all economic benefits arising
therefrom.
2. The Company shall judge nature of relevant performance obligations as “performance obligations fulfilled
in a certain period” or “performance obligations fulfilled at a certain time point” based on relevant provisions of
revenue standards, and shall confirm revenue according to the following principles respectively.
(1) In case the Company meets one of the following conditions, it shall fulfill the performance obligat ions
within a certain period of time:
① Customers obtain and consume economic benefits arising from performance of the Company during the
Company’s performance of the Contract.
② Customers can control the assets under construction during the Company’s performance of the Contract.
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③ Assets of the Company during the performance of the Contract are irreplaceable, and the Company shall
be entitled to collect money for the performance part completed so far in the whole contract period.
For performance obligations fulfilled within a certain period of time, the Company shall recognize revenue
according to the performance progress within that period, except that the performance progress cannot be
reasonably determined. The Company shall consider nature of commodities, and shall determine the proper
performance progress by adopting the output method or the input method.
(2) For performance obligations fulfilled at a certain time point rather than in a certain period, the Company
shall recognize revenue at the time when customers obtain the control right of relevant commodities.
When judging whether customers have obtained the control right of relevant commodities, the Company
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.
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. Specific revenue recognition method of the Company
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 In case customers take delivery of commodities in cash, the Company shall consider that
risks and rewards of the ownership of products have been transferred to customers, and shall confirm the sales
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revenue. ② In case of advance collection and settlement, the receiving order shall be confirmed by the opposite
customer after delivery, then the Company shall consider that risks and rewards of the ownership of products have
been transferred to customers, and shall confirm the sales revenue. ③ In case of sale on credit, customers shall
settle according to the account period, and shall obtain the confirmation receipt from the opposite customer after
delivery according to Customers’ order, so as to transfer risks and rewards of product ownership to customers;
besides, the Company shall confirm 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 relevant declaration documents to transfer risk reward, and record
the sales revenue based on the delivery order, special export invoice and customs declaration form.
4. Measurement of revenue
The Company shall measure revenue according to the transaction price allocated to each individual
performance obligation. In determining the transaction price, the Company shall consider the influence of variable
consideration, significant financing components in the Contract, non-cash consideration, consideration payable to
customers as well as other factors.
(1) Variable consideration
The Company shall determine the best estimate of variable consideration according to the expected value or
the most likely amount, but the transaction price including the variable consideration shall not exceed the
accumulated recognized revenue that will not be significantly reversed when relevant uncertainty is eliminated.
When evaluating whether the accumulative recognized revenue is unlikely to be significantly reversed, the
enterprise shall further consider the possibility and proportion of revenue reversal.
(2) Significant financing components
In case of significant financing components in the Contract, the Company shall determine the transaction
price according to the amount payable in cash when assuming that customers obtain the control right of
commodities. Difference between the transaction price and the contract consideration shall be amortized by
adopting the effective interest rate method during the contract period.
(3) Non-cash consideration
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In case customers pay non-cash consideration, the Company shall determine the transaction price according
to the fair value of the non-cash consideration. In case the fair value of non-cash consideration cannot be
reasonably estimated, the Company shall indirectly determine the transaction price by referring to the separate
selling price of commodities for transferring commodities to customers that it promises.
(4) Consideration payable to customers
Consideration payable to customers shall be written down against the transaction price, and the current
income shall be offset at the later of confirming relevant income or paying (or promising to pay) customer’s
consideration, except that the consideration payable to customers is to obtain other clearly distinguishable
commodities from customers.
In case the consideration payable by an enterprise to customers is to obtain other clearly distinguishable
commodities from customers, the purchased commodities shall be confirmed in a way consistent with other
purchases of the enterprise. In case the consideration payable by an enterprise to customers exceeds the fair value
of a clearly distinguishable commodity obtained from the customer, the excess amount shall be used to offset the
transaction price. In case the fair value of clearly distinguishable commodities obtained from customers cannot be
reasonably estimated, the enterprise shall offset the transaction price with the consideration payable to customers
in full.
Differences in revenue recognition accounting policies caused by different business models of similar
businesses
None
40. Government subsidies
1. Government subsidies include government subsidies related to assets and government subsidies related to
income.
2. In case the government subsidies can be included in monetary assets, they shall be measured according to
the amount received or receivable; In case the government subsidies can be classified as non-monetary assets,
they shall be measured at fair value, and once the fair value cannot be obtained reliably, they shall be measured in
nominal amount.
3. Government subsidies calculated by adopting the gross method
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(1) Government subsidies related to assets shall be recognized as deferred income and included in profits and
losses by stages in a reasonable and systematic way within the service life of relevant assets. In case relevant
assets are sold, transferred, scrapped or damaged prior to the end of their service life, the balance of relevant
deferred income that has not been allocated shall be transferred to the profits and losses of the current period of
asset disposal.
(2) Government subsidies related to income and used to compensate related expenses or losses in the later
period shall be recognized as deferred income, and shall be included in the current profits and losses during the
period when related expenses are recognized; subsidies used to compensate relevant expenses or losses incurred
shall be directly included in the current profits and losses.
4. Government subsidies calculated by adopting the net method
(1) Government subsidies related to assets shall be used to offset the book value of relevant assets;
(2) Government subsidies related to income and used to compensate related expenses or losses in the later
period shall be recognized as deferred income, and shall be used to offset related costs when related expenses are
recognized; subsidies used to compensate relevant expenses or losses incurred shall be directly used to offset
related costs.
5. The Company shall adopt the gross method to calculate the government subsidies received.
6. For government subsidies including asset-related part and income-related part, measures shall be taken to
distinguish different parts and carry out accounting treatment separately; Part difficult to distinguish shall be
classified as government subsidies related to income.
7. The Company shall include the government subsidies related to its daily activities in other income
according to the essence of economic business, and shall include the government subsidies unrelated to its daily
activities in non-operating income and expenditure.
8. 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:
a. 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.
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b. 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.
41. Deferred income tax assets / Deferred income tax liabilities
1. It is required to calculate and recognize the deferred income 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 income tax assets shall be limited to the taxable income that is likely to be
obtained to offset temporary deductible differences. In case of conclusive evidence showing that sufficient taxable
income is likely to be obtained in the future to offset temporary deductible differences, the deferred income tax
assets not recognized in the previous accounting period shall be recognized on the balance sheet date.
3. The book value of deferred income 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 income tax assets in the future,
the book value of the deferred income 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 income 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) business combination; (2) transactions or matters directly recognized in the owner’s
equity.
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42. Lease
(1) Accounting treatment of operating lease
1. Lessee
When the Company is a lessee, except for short-term leases and low-value asset leases with simplified
treatment, the use right assets and lease liabilities shall be recognized for the lease on the beginning date of the
lease term.
After the beginning date of the lease term, the Company adopts the cost model for subsequent measurement of the
use right assets. The provision for the depreciation of the use right 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 asset upon the expiration of the
lease term, it shall make provision for the depreciation within the remaining service life of the leased asset. 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 should be calculated and withdrawn as depreciation over the shorter one of the lease term
or the remaining service life. The Company determines whether the use right 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 liability in each period of the lease term according
to the fixed periodic interest rate and includes it in the current profit and loss. If it shall be included in the relevant
asset cost according to the Accounting Standards for Business Enterprises No. 17 - Borrowing Costs and other
standards, the provisions thereof shall apply.
For short-term leases and low-value asset leases, the Company chooses not to recognize use right assets and
lease liabilities, and the lease payments for short-term leases and low-value asset leases are included in the
relevant asset cost or current profit and loss according to the straight-line method in each period of the lease term.
2. Lessor
If the Company is the lessor, it adopts the straight-line method to recognize the lease receipts of operating
leases as rental income during each period of the lease term. The initial direct expenses related to operating leases
shall be capitalized, amortized on the same basis as the recognition of rental income during the lease term, and
included in the current profit and loss by stages.
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For the fixed assets in the operating lease assets, the Company shall adopt the depreciation policy of similar
assets for depreciation; other operating lease assets shall be amortized by systematic and reasonable methods in
accordance with the accounting standards for business enterprises applicable to the assets. The Company
determines whether the operating lease assets are impaired in accordance with the Accounting Standards for
Business Enterprises No. 8 - Asset Impairment, and carries out corresponding accounting treatment.
(2) Accounting treatment of financing lease
1. Lessee
When the Company is a lessee, except for short-term leases and low-value asset leases with simplified
treatment, the use right assets and lease liabilities shall be recognized for the lease on the beginning date of the
lease term.
After the beginning date of the lease term, the Company adopts the cost model for subsequent measurement of the
use right assets. The provision for the depreciation of the use right 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 asset upon the expiration of the
lease term, it shall make provision for the depreciation within the remaining service life of the leased asset. 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 should be calculated and withdrawn as depreciation over the shorter one of the lease term
or the remaining service life. The Company determines whether the use right 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 liability in each period of the lease term according
to the fixed periodic interest rate and includes it in the current profit and loss. If it shall be included in the relevant
asset cost according to the Accounting Standards for Business Enterprises No. 17 - Borrowing Costs and other
standards, the provisions thereof shall apply.
For short-term leases and low-value asset leases, the Company chooses not to recognize use right assets and
lease liabilities, and the lease payments for short-term leases and low-value asset leases are included in the
relevant asset cost or current profit and loss according to the straight-line method in each period of the lease term.
2. Lessor
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If the Company is a lessor, on the beginning date of the lease term, the finance lease receivables shall be
recognized for the financing lease, the finance lease assets shall be derecognized, and the interest income in each
period within the lease term shall be calculated and recognized according to the fixed periodic interest rate.
43. Other important accounting policies and accounting estimation
Hedge accounting
The hedge means the risk management activity where the enterprise designates the financial instruments as
the hedge instruments for the risk exposure due to the management of the specific risks such as foreign exchange
risk, interest rate risk, price risk, credit risk so that the fair value or the cash flow changes, which is expected to
countervail all or part of the fair value or cash flow change of the hedged projects.
1. In the hedge accounting, the hedge is divided into fair value hedge, cash flow hedge, and net investment
hedge for overseas operation.
2. Only when the fair value hedge, cash flow hedge, or net investment hedge for overseas operation meet the
following conditions at the same time can the hedge accounting method stipulated by the Code for handling.
(1) The hedge relationship is only composed of the hedge instruments and hedged projects that meet the
conditions; (2) When the hedge begins, the enterprise officially designates the hedge instruments and hedged
projects and prepares the written documents about hedge relationship and the risk management strategies and risk
management objectives related to the hedge for the enterprise. These documents at least describe the hedge
instrument, hedged projects, nature of the hedged risks, and evaluation methods on hedge effectiveness (including
the forming reason analysis for invalid part of the hedge and the confirmation methods of the hedge ratio) etc. (3)
The hedge relationship conforms to the requirements of hedge effectiveness.
If the hedge meets the following conditions at the same time, the enterprise shall identify that the hedge
relationship conforms to the requirements of hedge effectiveness:
(a) There is the economic relationship between the hedged projects and hedge instruments. The economic
relationship makes the value of the hedge instruments and hedged projects change in the reverse direction due to
the same hedged risks.
(b) In the value change generated for the hedged projects and hedge instruments, the effect of the credit risk
is not dominant.
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(c) The hedge ratio of the hedge relationship shall be equal to the ratio between the hedged project quantity
of the actual hedge for the enterprise and the actual quantity of the hedge instruments and shall not reflect the
unbalance of the relative weight between the hedged projects and hedge instruments, which will cause the hedge
invalidation and may generate the accounting results not consistent with the hedge accounting objectives.
The enterprise shall continuously evaluate whether the hedge relationship conforms to the hedge
effectiveness requirements when the hedge begins and during sequent periods, especially for the analysis the
forming reasons why it is expected to affect the hedge relationship due to the invalid part of the hedge during the
residual periods of the hedge. The enterprise shall at least evaluate the hedge relationship on the day of balance
sheet and when the major changes will happen for relevant situations affecting the hedge effectiveness
requirements.
If the hedge relationship does not conform to the hedge effectiveness requirements any more due to the
hedge ratio, but the risk management objective to designate the hedge relationship does not change, the enterprise
shall re-balance the hedge relationship.
3. Accounting handling of the hedge.
(1) Fair value hedge
If the fair value hedge meets the conditions of the hedge accounting methods, it shall be handled in
accordance with the provisions below:
(a) The profit or loss generated by the hedge instrument shall be incorporated into the profits and losses. If
the hedge instrument is used to hedge the non-tradable equity instrument investment (or its components) which is
measured at fair value with the changes including in other comprehensive income, the profit or loss generated by
the hedge instruments shall be incorporated into other comprehensive income.
(b) The profit or loss generated by the hedged projects due to the hedge risk exposure shall be incorporated
into the current profit or loss. At the same time, the account value shall be adjusted for the confirmed hedged
projects measured at the fair value.
(2) Cash flow hedge
If the cash flow value hedge meets the conditions to apply the hedge accounting methods, it shall be handled
in accordance with the provisions below:
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(a) If the profit or loss generated by the hedge instrument belongs to the valid part of the hedge as the cash
flow hedge reserve, it shall be incorporated into other comprehensive income. The amount of cash flow hedge
reserve included in other comprehensive income in each period shall be the change amount of cash flow hedge
reserve in the current period.
(b) If the profit or loss generated by the hedge instrument belongs to the invalid part of the hedge (that is,
other profit or loss after deducting other comprehensive income), it shall be incorporated into the current profits
and losses.
(3) Net investment hedge for overseas operation
As for the net investment hedge for overseas operation, including the hedge of monetary items accounting as
part of net investment, it shall be handled in accordance with the provisions similar to the cash flow hedge
accounting:
(a) If the profit or loss generated by the hedge instrument belongs to the valid part of the hedge, it shall be
incorporated into other comprehensive income.
When all or part of the overseas business is disposed, the above profit or loss of hedge instruments included
in other comprehensive income shall be transferred out and incorporated into the current profits and losses.
(b) If the profit or loss generated by the hedge instrument belongs to the invalid part of the hedge, it shall be
incorporated into the current profits and losses.
Repurchase shares
If the Company or its subsidiaries shares are acquired due to the reduction of registered capital or reward of
employees, the amount actually paid shall be treated as the treasury share, and the record shall be made for
reference. If the repurchase shares are cancelled, the capital reserve will be offset by the difference between the
total par value of the cancelled shares and the number of cancelled shares and the amount paid for the actual
repurchase. If the capital reserve is insufficient to be offset, the retained earnings shall be offset; If the repurchase
shares are awarded to the employees of the Company as equity-settled share-based payment, when the employees
exercise the right to purchase the shares of the Company or its subsidiaries and receive the price, the cost of
treasury shares delivered to the employees and the accumulated amount of capital reserve (other capital reserves)
during the waiting period shall be resold, and the capital reserve (capital premium or share premium) shall be
adjusted according to the difference.
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44. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
√ applicable □ not applicable
Approval
Contents and reasons of the accounting policy change Remarks
procedures
On December 7, 2018, the Ministry of Finance revised and issued the Accounting Standards for Business
Enterprises No. 21 - Lease (CK [2018] No. 35), requiring domestic listed enterprises to implement the new
Not applicable
lease standards as of January 1, 2021.According to the revised accounting standards, the Company was
required to make corresponding changes to the original accounting policies.
Impact of changes in new lease standards on the Company:
1. Under the new lease standards, except for short-term leases and low-value asset leases, the lessee will no longer
distinguish between financing leases and operating leases, and for all leases, the same accounting treatment will
be adopted, and use right assets and lease liabilities must be recognized;
2. For the use right 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 should be calculated and withdrawn as depreciation over
the shorter one of the lease term or the remaining service life. At the same time, the lessee shall determine whether
the use right assets are impaired and carry out accounting treatment for the identified impairment losses;
3. For lease liabilities, the lessee shall calculate the interest expenses of the lease liabilities during each period of
the lease term and include them in the current profit and loss;
4. For short-term leases and low-value asset leases, the lessee may choose not to recognize use right assets and
lease liabilities, and shall include them in the relevant asset cost or current profit and loss according to the
straight-line method or other systematic and reasonable methods during each period of the lease term.
Specifically, the implementation of the new lease standards resulted in an increase of 30.94 million yuan in the
Company's use right assets and 30.94 million yuan in lease liabilities than at the beginning of the period. Except
that, they had no other impact on the data of the statements at the beginning of the period.
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(2) Important accounting estimation changes
□ applicable √ not applicable
(3) Related items in financial statements at the beginning of the year when the new lease standards are
implemented from 2021 at the first time
Applicable
Whether it is needed to adjust the balance sheet account at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
Unit: Yuan
Items December 31, 2020 January 1, 2021 Adjustment quantity
Current assets:
Monetary capital 1,219,095,476.50 1,219,095,476.50
Settlement of provisions
Loans to other banks
Trading financial assets 226,491,482.10 226,491,482.10
Derivative financial assets
Notes receivable 39,477,930.63 39,477,930.63
Accounts receivable 1,701,111,153.84 1,701,111,153.84
Receivables financing 246,656,027.27 246,656,027.27
Prepayments 17,735,229.99 17,735,229.99
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 40,728,126.64 40,728,126.64
Including: interest receivable
Dividends receivable
Repurchase of financial assets for resale
Inventory 1,115,312,868.62 1,115,312,868.62
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 68,175,222.37 68,175,222.37
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Total current assets 4,674,783,517.96 4,674,783,517.96
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 6,502,528.13 6,502,528.13
Other equity instrument investment
Other non-current financial assets
Investment real estate 89,238,265.71 89,238,265.71
Fixed assets 1,096,875,640.94 1,096,875,640.94
Construction in progress: 292,474,798.41 292,474,798.41
Productive biological assets
Oil and gas assets
Use right assets 30,939,385.41 30,939,385.41
Intangible assets 309,794,540.63 309,794,540.63
Development expenditure 68,518,375.79 68,518,375.79
Goodwill 108,637,368.48 108,637,368.48
Long-term deferred expenses 72,077,671.09 72,077,671.09
Deferred income tax assets 55,192,974.75 55,192,974.75
Other non-current assets 34,639,355.39 34,639,355.39
Total non-current assets 2,133,951,519.32 2,164,890,904.73 30,939,385.41
Total assets 6,808,735,037.28 6,839,674,422.69 30,939,385.41
Current liabilities:
Short-term loans 402,151,500.00 402,151,500.00
Borrowing money from the central bank
Borrowed funds
Trading financial liabilities
Derivative financial liabilities
Notes payable 715,574,653.91 715,574,653.91
Accounts payable 1,549,906,339.72 1,549,906,339.72
Advance receipt 487,267.17 487,267.17
Contractual liabilities 72,576,117.56 72,576,117.56
Financial assets sold for repurchase
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Deposit absorption and interbank deposit
Acting trading securities
Acting underwriting securities
Employee compensation payable 175,503,764.12 175,503,764.12
Taxes payable 60,256,015.60 60,256,015.60
Other payables 57,160,615.93 57,160,615.93
Including: Interest payable
Dividends payable
Service charges and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 3,033,616,274.01 3,033,616,274.01
Non-current liabilities
Insurance contract reserve
Long-term loans 200,000,000.00 200,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 30,939,385.41 30,939,385.41
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 14,624,770.00 14,624,770.00
Deferred income tax liabilities 11,819,861.30 11,819,861.30
Other non-current liabilities
Total non-current liabilities 226,444,631.30 257,384,016.71 30,939,385.41
Total liabilities 3,260,060,905.31 3,291,000,290.72 30,939,385.41
Owner's equity:
Share capital 1,135,216,809.00 1,135,216,809.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
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Capital reserves 956,734,039.75 956,734,039.75
Less: treasury shares 80,017,965.68 80,017,965.68
Other comprehensive income -24,555,229.97 -24,555,229.97
Special reserve
Surplus reserves 151,359,957.53 151,359,957.53
General risk provision
Undistributed profit 1,324,944,369.91 1,324,944,369.91
Total owner's equity attributable to the parent
3,463,681,980.54 3,463,681,980.54
company
Minority equity 84,992,151.43 84,992,151.43
Total owners' equity 3,548,674,131.97 3,548,674,131.97
Total liabilities and owners' equity 6,808,735,037.28 6,839,674,422.69 30,939,385.41
Adjustment situation representation
In accordance with the requirements of the Accounting Standards for Business Enterprises No. 21 - Lease as
issued by the Accounting Department of the Ministry of Finance on December 7, 2018, the new standards shall be
implemented for enterprises listed at home and abroad as of January 1, 2021. The standards require that any lessee
shall choose one of the following methods to conduct bridging accounting treatment for leases, which shall be
uniformly applied to all leases in which it is a lessee: (i) The retroactive adjustment method shall be adopted in
accordance with the Accounting Standards for Business Enterprises No. 28 - Changes in Accounting Policies,
Accounting Estimates and Error Correction.(ii) The amounts of retained earnings and other relevant items in the
financial statements at the beginning of the year in which the standards are first implemented shall be adjusted
according to the cumulative impact of the first implementation of the standards, and the information of
comparable periods shall not be adjusted. In light of with the actualities, the Company chooses the following:
"The amounts of retained earnings and other relevant items in the financial statements at the beginning of the year
in which the standards are first implemented shall be adjusted according to the cumulative impact of the first
implementation of the standards, and the information of comparable periods shall not be adjusted. "Therefore, the
Company measures lease liabilities and use right assets at the present value discounted at the lessee's incremental
loan interest rate on the first implementation date according to the remaining lease payments of all lease contracts.
Balance Sheet of Parent Company
Unit: Yuan
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Items December 31, 2020 January 1, 2021 Adjustment quantity
Current assets:
Monetary capital 705,163,083.52 705,163,083.52
Trading financial assets 102,133,982.10 102,133,982.10
Derivative financial assets
Notes receivable 6,939,021.98 6,939,021.98
Accounts receivable 896,265,475.70 896,265,475.70
Receivables financing 217,543,679.19 217,543,679.19
Prepayments 6,953,106.28 6,953,106.28
Other receivables 41,159,647.12 41,159,647.12
Including: interest receivable
Dividends receivable
Inventory 209,965,269.91 209,965,269.91
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 12,054,327.33 12,054,327.33
Total current assets 2,198,177,593.13 2,198,177,593.13
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 2,200,934,231.94 2,200,934,231.94
Other equity instrument investment
Other non-current financial assets
Investment real estate
Fixed assets 120,829,877.70 120,829,877.70
Construction in progress: 2,392,458.84 2,392,458.84
Productive biological assets
Oil and gas assets
Use right assets
Intangible assets 132,732,792.93 132,732,792.93
Development expenditure 44,248,718.56 44,248,718.56
Goodwill
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Long-term deferred expenses 27,739,322.93 27,739,322.93
Deferred income tax assets 27,692,977.98 27,692,977.98
Other non-current assets 6,997,597.90 6,997,597.90
Total non-current assets 2,563,567,978.78 2,563,567,978.78
Total assets 4,761,745,571.91 4,761,745,571.91
Current liabilities:
Short-term loans 102,151,500.00 102,151,500.00
Trading financial liabilities
Derivative financial liabilities
Notes payable 696,684,142.33 696,684,142.33
Accounts payable 471,203,775.42 471,203,775.42
Advance receipt
Contractual liabilities 29,103,190.50 29,103,190.50
Employee compensation payable 91,953,399.79 91,953,399.79
Taxes payable 28,211,920.73 28,211,920.73
Other payables 299,042,515.61 299,042,515.61
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,718,350,444.38 1,718,350,444.38
Non-current liabilities
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 10,535,500.00 10,535,500.00
Deferred income tax liabilities 8,106,676.00 8,106,676.00
Other non-current liabilities
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Total non-current liabilities 18,642,176.00 18,642,176.00
Total liabilities 1,736,992,620.38 1,736,992,620.38
Owner's equity:
Share capital 1,135,216,809.00 1,135,216,809.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 1,007,315,299.41 1,007,315,299.41
Less: treasury shares 80,017,965.68 80,017,965.68
Other comprehensive income 5,569,575.04 5,569,575.04
Special reserve
Surplus reserves 151,331,439.07 151,331,439.07
Undistributed profit 805,337,794.69 805,337,794.69
Total owners' equity 3,024,752,951.53 3,024,752,951.53
Total liabilities and owners' equity 4,761,745,571.91 4,761,745,571.91
Adjustment situation representation
None
(4) Comparison data declaration at the early stage for the traceability and adjustment for new lease
standards implemented from 2021 at the first time
□ applicable √ not applicable
45. Others
None
VI. Tax
1. Main tax type and rate
Tax type Taxation basis Tax rate
VAT (value-added tax) Revenue from sales of goods 13%、9%、6%、3%
City maintenance and construction tax Actually paid goods turnover tax 7%
Corporate income tax Taxable income 15%、25%、16.5%、25.17%、20%、15.825%、22.46%
Education surcharge Actually paid goods turnover tax 3%
Local education surcharge Actually paid goods turnover tax 2%
Explanation shall be made by means of disclosure where there is any taxpayer with different corporate income tax rates
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Name of taxpayer Income tax rate
Shenzhen Topband Co., Ltd. 15%
Shenzhen Topband Software Technology Co., Ltd. 15%
Shenzhen Topband Automation Technology Co., Ltd. 25%
Chongqing Topband Industrial Co., Ltd. 25%
Huizhou Topband Electrical Technology Co., Ltd. 15%
Shenzhen Topband Lithium Battery Co., Ltd. 15%
Shenzhen YAKO Automation Technology Co., Ltd. 15%
Shenzhen Yansheng Software Co., Ltd. 12.5%
Topband (Hong Kong) Co., Ltd. 16.5%
TOPBAND INDIA PRIVATE LIMITED 25.17%
Shenzhen Allied Control System Co., Ltd. 15%
Huizhou Topband Lithium Battery Co., Ltd. 25%
Topband (Qingdao) Intelligent Control Co., Ltd. 25%
Shenzhen Meanstone Intelligent Technology Co., Ltd. 20%
Topband （Vietnam） Co.,ltd 20%
Hangzhou Zhidong Motor Technology Co., Ltd. 25%
TOPBAND SMART DONGNAI(VIETNAM) Co.,ltd 20%
Shenzhen Topband Supply Chain Services Co., Ltd. 25%
Shenzhen Spark IOT Technology Co., Ltd. 20%
Shenzhen Topband Investment Co., Ltd. 25%
Topband Germany GmbH 15.825%
Shenzhen Senxuan Technology Co., Ltd. 20%
TOPBAND JAPAN Co., Ltd. 22.46%
Shenzhen Tengyi Industrial Co., Ltd. 20%
Taixing Ninghui Lithium Battery Co., Ltd. 25%
Topband (Qingdao) Intelligent Control Co., Ltd. 25%
Shenzhen Zhongli Consulting Co., Ltd. 20%
Shenzhen Tulu Innovation Co., Ltd. 20%
Tulu Innovation (Hong Kong) Limited 16.5%
2. Tax preference
On October 31, 2017, the Company obtained the Certificate for High-tech Enterprise that is numbered
GR201744204652 and issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance
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Commission, Shenzhen Municipal Office, SAT and Shenzhen Local Taxation Administration. This Certificate is
valid within 3 years from the date of issuance. On February 5, 2021, the Company has received the Certificate for
High-tech Enterprise jointly issued by Shenzhen Science and Technology Innovation Commission, Shenzhen
Finance Bureau, and Shenzhen Tax Service, State Taxation Administration, and passed the re-certification of
high-tech enterprises. This certification is a renewal of the original certificate that has been expired. According to
relevant regulations, the Company will be entitled to the preferential policies stated by China for the high-tech
enterprise income tax for three consecutive years after passing the re-certification of high-tech enterprises. That is,
the company shall pay its corporate income tax at 15% of corporate income tax rate from 2021 to 2023.
On October 16, 2018, Shenzhen Yansheng Software Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR201844200095 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2019 to 2021 is 15% in accordance with relevant provisions of the Law of the People's Republic
of China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of
Enterprise Income Tax and the Management Measures for the Certification of High-tech Enterprises.
On November 9, 2018, Shenzhen Topband Lithium Battery Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR201844202311 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2019 to 2021 is 15% in accordance with relevant provisions of the Law of the People's Republic
of China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of
Enterprise Income Tax and the Management Measures for the Certification of High-tech Enterprises.
On November 9, 2018, Shenzhen Allied Control System Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR201844202356 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen Local Taxation
Administration. This Certificate is valid within 3 years from the date of issuance. The corporate income tax rate
applicable for the Company from 2018 to 2021 is 15% in accordance with relevant provisions of the Law of the
People's Republic of China on Enterprise Income Tax, the Regulations of the People's Republic of China on the
Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
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Enterprises.
On November 9, 2018, Shenzhen YAKO Automation Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR201844204122 and issued by Shenzhen Science and Technology
Innovation Commission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen Local
Taxation Administration. This Certificate is valid within 3 years from the date of issuance. The corporate income
tax rate applicable for the Company from 2018 to 2021 is 15% in accordance with relevant provisions of the Law
of the People's Republic of China on Enterprise Income Tax, the Regulations of the People's Republic of China on
the Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.
On November 9, 2018, Huizhou Topband Electrical Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR201844010394 and issued by the Department of Science and
Technology of Guangdong Province, the Department of Finance of Guangdong Province, and Guangdong
Provincial Tax Service, State Taxation Administration. This Certificate is valid within 3 years from the date of
issuance. The corporate income tax rate applicable for the Company from 2019 to 2021 is 15% in accordance with
relevant provisions of the Law of the People's Republic of China on Enterprise Income Tax, Regulations of the
People's Republic of China on the Implementation of Enterprise Income Tax and the Management Measures for
the Certification of High-tech Enterprises.
On December 9, 2019, Shenzhen Topband Software Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR201944201381 and issued by Shenzhen Science and Technology
Innovation Commission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen Local
Taxation Administration. This Certificate is valid within 3 years from the date of issuance. The corporate income
tax rate applicable for the Company from 2019 to 2021 is 15% in accordance with relevant provisions of the Law
of the People's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on the
Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.
On July 11, 2018, the Ministry of Finance and the State Taxation Administration issued CS [2018] No. 77
Notice on Further Strengthening the Efforts in Preferential Income Tax Policies for Small and Low-Profit
Enterprises. According to the Notice, from January 1, 2018 to December 31, 2020, the cap of the annual taxable
income of small and low-profit enterprises shall be increased from 500,000 yuan to 1 million yuan, and the small
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and low-profit enterprises with annual taxable income of less than 1 million yuan (inclusive) shall pay their
corporate income taxes at 20% of tax rate with including their incomes reduced by 50% into their taxable incomes.
Shenzhen Meanstone Intelligent Technology Co., Ltd., a subsidiary of the Company, was recognized as a small
and micro business, and shall apply 20% tax rate for its corporate income tax from 2018 to 2020.
According to CS [2019] No. 13 Notice on the Implementation of Inclusive Tax Relief Policies for Small and
Micro Businesses, the small and micro businesses shall pay their corporate income taxes at 20% of tax rate, and
reduce the portion of not more than 1 million yuan in their annual taxable incomes by 25% and that of more than 1
million yuan but not more than 3 million yuan in their annual taxable incomes by 50% before including such
portion into their taxable incomes. The provisions of this Policy apply to Shenzhen Topband Investment Co., Ltd.,
Shenzhen Senxuan Technology Co., Ltd., Shenzhen Spark IOT Technology Co., Ltd., Shenzhen Tulu Innovation
Co., Ltd., Huizhou Topband Lithium Battery Co., Ltd., Shenzhen Meanstone Intelligent Technology Co., Ltd.,
Shenzhen Zhongli Consulting Co., Ltd., and Shenzhen Tengyi Industrial Co., Ltd. that are subsidiaries and
sub-subsidiaries.
On September 15, 2020, Shenzhen Yansheng Software Co., Ltd. passed the verification carried out by the
Industry and Information Technology Bureau of Shenzhen Municipality on the preferential income tax conditions
for the enterprises engaged in software and integrated circuit design in Shenzhen. According to the provisions of
No. 68 Announcement of Ministry of Finance and State Taxation Administration on Corporate Income Tax
Policies for Integrated Circuit Design and Software Industry issued by the Ministry of Finance and State Taxation
Administration in 2019, Shenzhen Yansheng Software Co., Ltd. shall be entitled to the preferential tax policy of
exemptions in two years and reduction in three years, that is, its corporate income tax shall be exempted from the
first to the second year and reduced by 50% at 25% of statutory tax rate from the third to the fifth year until the
expiration of the preferential period provided that the preferential period shall be calculated from the
profit-making year before December 31, 2018.
3. Others
Topband (Hong Kong) Co., Ltd. (hereinafter referred to as "Hong Kong Topband") is a subsidiary of the
Company. It is established in Hong Kong Special Administrative Region and is subject to 16.5% of profit tax rate.
TOPBAND INDIA PRIVATE LIMITED is a subsidiary of the Company. It is established in India and is
subject to 25.17% of income tax rate.
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Topband (Vietnam) Co., Ltd. is a sub-subsidiary of the Company. It is established in Vietnam and is subject
to 20% of income tax rate.
TOPBAND SMART DONGNAI (VIETNAM) Co., Ltd. is a sub-subsidiary of the Company. It is established
in Vietnam and is subject to 20% of income tax rate.
Topband Germany GmbH is a sub-subsidiary of the Company. It is established in Germany and is subject to
15.825% of income tax rate.
TOPBAND JAPAN Co., Ltd. is a sub-subsidiary of the Company. It is established in Japan and is subject to
22.46% of corporate income tax rate.
Tulu Innovation (Hong Kong) Co., Ltd. (hereinafter referred to as "Hong Kong Tulu"), a sub-sub-subsidiary
of the Company, is an enterprise established in the Hong Kong Special Administrative Region and implements a
profit tax rate of 16.5%.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: Yuan
Items Ending balance Beginning balance
Cash on hand 712,197.18 604,492.12
Bank deposit 1,271,197,999.84 1,196,226,680.89
Other monetary capital 17,954,027.87 22,264,303.49
Total 1,289,864,224.89 1,219,095,476.50
Including: total amount deposited abroad 158,988,673.32 153,809,647.09
Total amount restricted for use due to mortgage, pledge or freezing, etc. 5,480,466.03 22,264,303.49
Other description:
The restricted part of other monetary funds at the end of the period includes the guarantee amount of
4,719,904.03 yuan for bank acceptance bill deposits and letters of guarantee and the frozen funds of in 760,562.00
yuan in labor arbitration; the unrestricted accounts include the amount of 12,335,497.27 yuan in Huatai Securities
Account and China Securities Depository and Clearing Company Limited Account and the e-commerce platform
collection amount of 138,064.57 yuan.
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2. Trading financial assets
Unit: Yuan
Items Ending balance Beginning balance
Financial assets measured at fair value with changes included
330,421,910.87 226,491,482.10
in the current profits and losses
Including:
Financial products 116,500,000.00 112,970,000.00
Investment in equity instruments 208,468,430.89 113,521,482.10
Others 5,453,479.98
Total 330,421,910.87 226,491,482.10
3. Derivative financial assets
None
4. Notes receivable
(1) Notes receivable listed by category
Unit: Yuan
Items Ending balance Beginning balance
Bank acceptance bill 57,981,029.52 33,560,579.23
Commercial acceptance bill 10,564,521.92 5,917,351.40
Total 68,545,551.44 39,477,930.63
Unit: Yuan
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Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportio Proportion Book value Proportion Book value
Amount Amount Amount Proportion Amount
n of provision of provision
Notes receivable
with single provision 57,981,029.52 99.90% 0.00% 57,981,029.52 33,560,579.23 99.90% 33,560,579.23
for bad debts
Including:
Bank acceptance bill 57,981,029.52 99.90% 0.00% 57,981,029.52 33,560,579.23 99.90% 33,560,579.23
Notes receivable
with provision for
10,902,499.40 0.10% 337,977.48 3.10% 10,564,521.92 6,106,657.79 0.10% 189,306.39 3.10% 5,917,351.40
bad debts by
portfolio
Including:
Co mmercial
10,902,499.40 0.10% 337,977.48 3.10% 10,564,521.92 6,106,657.79 0.10% 189,306.39 5.00% 5,917,351.40
acceptance bill
Total 68,883,528.92 100.00% 337,977.48 0.01% 68,545,551.44 39,667,237.02 100.00% 189,306.39 0.00% 39,477,930.63
Single provision for bad debts: 0
Unit: Yuan
Ending balance
Name Proportion of
Book balance Provision for bad debts Reasons for provision
provision
No risk of cashing bank
Bank acceptance bill 57,981,029.52 0.00 0.00%
acceptance bill
Total 57,981,029.52 0.00 -- --
Provision for bad debts by portfolio: 337,977.48
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Commercial acceptance bill 10,902,499.40 337,977.48 3.10%
Total 10,902,499.40 337,977.48 --
If the provision for bad debts on notes receivable is based on the general model of expected credit loss, the
information about the provision for bad debts shall be disclosed by referring to the disclosure method of other
receivables:
□ applicable √ not applicable
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(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
Amount changed in current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for bad
debts - notes 189,306.39 148,671.09 337,977.48
receivable
Total 189,306.39 148,671.09 337,977.48
Of which the amount of provision for bad debts recovered or reversed in current period is significant
□ applicable √ not applicable
(3) Notes receivable pledged by the Company at the end of the period
□ applicable √ not applicable
(4) Notes receivable endorsed or discounted by the Company at the end of the period but not yet due at the
balance sheet date
Unit: Yuan
Amount derecognized at the end of the Amount not derecognized at the end of the
Items
period period
Bank acceptance bill 353,505,320.01
Commercial acceptance bill 2,625,670.04
Total 356,130,990.05
(5) Notes that the Company transferred to accounts receivable at the end of the period due to
non-performance by drawer
□ applicable √ not applicable
(6) Notes receivable actually written off in current period
□ applicable √ not applicable
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5. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: Yuan
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportio
Proportio Proportion Book value Proportio Book value
Amount Amount Amount Amount n of
n of provision n
provision
Accounts receivable with
provision for bad debts 5,737,558.17 0.27% 5,737,558.17 100.00% 0.00 3,787,463.00 0.21% 3,787,463.00 100.00% 0.00
by single item
Including:
Accounts receivable with
a single significant
1,712,057.63 0.08% 1,712,057.63 100.00% 0.00
amount and single bad
debt provision
Accounts receivable with
insignificant single
amount but single 4,025,500.54 0.19% 4,025,500.54 100.00% 0.00 3,787,463.00 0.21% 3,787,463.00 100.00% 0.00
provision made for bad
debts
Accounts receivable with
provision for bad debts 2,112,835,192.14 99.73% 69,443,300.07 3.29% 2,043,391,892.07 1,758,425,185.47 99.79% 57,314,031.63 3.26% 1,701,111,153.84
by portfolio
Including:
Accounts receivable with
provision for bad debts 2,112,835,192.14 99.73% 69,443,300.07 3.29% 2,043,391,892.07 1,758,425,185.47 99.79% 57,314,031.63 3.26% 1,701,111,153.84
by aging combination
Total 2,118,572,750.31 100.00% 75,180,858.24 3.55% 2,043,391,892.07 1,762,212,648.47 100.00% 61,101,494.63 3.47% 1,701,111,153.84
Single provision for bad debts: 5,737,558.17
Unit: Yuan
Ending balance
Name Provision for Proportion Reasons for
Book balance
bad debts of provision provision
Accounts receivable with a single significant amount and It is difficult to
1,712,057.63 1,712,057.63 100.00%
single bad debt provision recover
Accounts receivable with insignificant single amount but It is difficult to
4,025,500.54 4,025,500.54 100.00%
single provision made for bad debts recover
Total 5,737,558.17 5,737,558.17 -- --
Provision for bad debts by portfolio: 69,443,300.07
Unit: Yuan
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Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Within 1 year 2,068,294,754.73 64,032,008.93 3.10%
1 to 2 years 40,075,933.50 3,622,864.39 9.04%
2 to 3 years 2,654,776.63 586,971.12 22.11%
3 to 4 years 1,156,380.49 549,396.37 47.51%
4-5 years 8,180.00 6,892.47 84.26%
Over 5 years 645,166.80 645,166.80 100.00%
Total 2,112,835,192.14 69,443,300.07 --
Disclosure by aging
Unit: Yuan
Aging Ending balance
Less than 1 year (including 1 year) 2,074,032,312.89
1 to 2 years 40,075,933.50
2 to 3 years 2,654,776.63
More than 3 years 1,809,727.29
3 to 4 years 1,156,380.49
4 to 5 years 8,180.00
Over 5 years 645,166.80
Total 2,118,572,750.31
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
Amount changed in current period
Beginning Ending
Category Recover or
balance Provision Write-off Others balance
reversal
Accounts receivable with provision for bad
3,787,463.00 1,950,095.17 5,737,558.17
debts by single item
Accounts receivable with provision for bad
57,314,031.63 12,209,373.44 80,105.00 69,443,300.07
debts by portfolio
Total 61,101,494.63 14,159,468.61 80,105.00 75,180,858.24
(3) Accounts receivable actually written off in current period
Unit: Yuan
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Items Write-off amount
Accounts receivable actually written off 80,105.00
Of which the significant write-offs of accounts receivable:
Unit: Yuan
Nature of Write-off Whether the amount
Write-off Reasons for
Name of Entity accounts procedures was generated by
amount write off
receivable performed related transactions
Shanghai Haoze Noorey Environmental Payment for It is not expected
80,000.00 No
Protection Technology Co., Ltd. goods to be recovered
Payment for It is not expected
Shenzhen Xiongtao Lithium Battery Co., Ltd. 105.00 No
goods to be recovered
Total -- 80,105.00 -- -- --
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: Yuan
Ending balance of accounts Proportion to total ending balances of Ending balance of provision for
Name of Entity
receivable accounts receivable bad debts
No.1 548,318,747.84 25.88% 16,997,881.18
No.2 86,182,630.10 4.07% 2,671,661.53
No.3 74,623,188.11 3.52% 2,313,318.83
No.4 72,586,233.44 3.43% 2,250,173.24
No.5 53,183,957.62 2.51% 1,648,702.69
Total 834,894,757.11 39.41%
(5) Accounts receivable derecognized due to transfer of financial assets
□ applicable √ not applicable
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be
involved
□ applicable √ not applicable
6. Receivables financing
Unit: Yuan
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Items Ending balance Beginning balance
Notes receivable 140,104,632.86 90,426,713.39
Accounts receivable 149,144,209.02 156,229,313.88
Total 289,248,841.88 246,656,027.27
Changes in increase/decrease in receivables financing and changes in fair value in current period
□ applicable √ not applicable
If the provision for bad debts on receivables financing is based on the general model of expected credit loss, the
information about the provision for bad debts shall be disclosed by referring to the disclosure method of other
receivables:
√ applicable □ not applicable
Provision for bad debts Phase 1 Phase 2 Phase 3 Total
Expected credit loss in Expected credit loss for the Expected credit loss for the entire duration (credit
the next 12 months entire duration (no credit impairment occurred)
impairment)
Balance as of January 1,
4,843,108.73 4,843,108.73
2021
Reversal in current period 219,638.25 219,638.25
Balance on June 30, 2021 4,623,470.48 - - 4,623,470.48
7. Prepayments
(1) Prepayments are listed by aging
Unit: Yuan
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 30,215,158.44 83.63% 16,968,264.14 95.68%
1 to 2 years 920,219.12 15.53% 627,825.07 3.54%
2 to 3 years 47,508.97 0.26% 113,188.10 0.64%
More than 3 years 49,928.04 0.58% 25,952.68 0.15%
Total 31,232,814.57 -- 17,735,229.99 --
(2) Prepayment of top five ending balance grouped by prepaid object
The total amount of prepayments of top five ending balances grouped by debtors in the year was 6,507,824.26
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yuan, accounting for 20.84% of the total ending balances of prepayments.
8. Other receivables
Unit: Yuan
Items Ending balance Beginning balance
Other receivables 19,880,174.91 40,728,126.64
Total 19,880,174.91 40,728,126.64
(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: Yuan
Nature of payment Book balance at the end of the period Book balance at the beginning of the period
VAT rebate 1,698,394.56 23,817,036.82
Employee loans 7,493,171.55 7,886,380.07
Reserve fund 79,316.67
Margin, deposit 13,205,256.61 11,276,827.12
Compensation 33,648.22
Others 683,479.54 187,249.47
Total 23,193,267.15 43,167,493.48
2) Provision for bad debts
Unit: Yuan
Phase 1 Phase 2 Phase 3
Provision for bad debts Expected credit Expected credit loss for the Expected credit loss for the Total
loss in the next entire duration (no credit entire duration (credit
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12 months impairment) impairment occurred)
Balance as of January 1, 2021 2,439,366.84 2,439,366.84
Balance as of January 1, 2021
—— —— —— ——
in the current period
Accrued in current period 873,725.40 873,725.40
Balance on June 30, 2021 3,313,092.24 0.00 0.00 3,313,092.24
Changes in book balance with significant changes in loss reserves in current period
□ applicable √ not applicable
Disclosure by aging
Unit: Yuan
Aging Ending balance
Less than 1 year (including 1 year) 12,445,998.20
1 to 2 years 5,225,223.50
2 to 3 years 2,655,079.87
More than 3 years 2,866,965.58
3 to 4 years 2,819,951.11
4 to 5 years 5,000.00
Over 5 years 42,014.47
Total 23,193,267.15
3) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
Amount changed in current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for bad
2,439,366.84 873,725.40 3,313,092.24
debts
Total 2,439,366.84 873,725.40 3,313,092.24
4) Other receivables actually written off in current period
□ applicable √ not applicable
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5) Other receivables of top five ending balances grouped by debtors
Unit: Yuan
Proportion to Ending
total ending balance of
Name of Entity Nature of payment Ending balance Aging
balances of other provision for
receivables bad debts
Within one year: 2,030,629.92;
No.1 Rent deposit 2,168,401.92 9.35% 115,308.70
1-2 years: 137,772
No.2 VAT export tax rebate 1,698,394.56 Within 1 year 7.32%
No.3 Margin, deposit 1,630,359.50 3 to 4 years 7.03% 815,179.75
No.4 Rental deposit 1,520,178.00 2~3 years 6.55% 456,053.40
No.5 Margin, deposit 1,000,000.00 3 to 4 years 4.31% 500,000.00
Total -- 8,017,333.98 -- 34.57% 1,886,541.85
6) Receivables involving government subsidies
□ applicable √ not applicable
7) Other receivables derecognized due to transfer of financial assets
□ applicable √ not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
□ applicable √ not applicable
9. Inventory
Whether the Company is required to comply with the disclosure requirements of the real estate industry
No
(1) Inventory classification
Unit: Yuan
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
decline in value decline in value
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of inventories or of inventories or
provision for provision for
impairment of impairment of
contract contract
performance cost performance cost
Raw materials 1,345,468,260.81 84,915,773.03 1,260,552,487.78 669,357,860.89 56,781,506.42 612,576,354.47
Products in
99,829,106.18 99,829,106.18 65,058,584.18 65,058,584.18
process
Goods on hand 406,153,373.42 15,656,821.59 390,496,551.83 340,321,032.11 9,669,035.83 330,651,996.28
Goods shipped in
62,057,717.00 3,351,523.57 58,706,193.43 48,921,114.18 3,963,402.85 44,957,711.33
transit
Self-manufactured
semi-finished 70,577,947.74 4,342,484.96 66,235,462.78 60,865,430.27 3,717,115.68 57,148,314.59
product
Low-value
215,050.70 215,050.70 84,986.73 84,986.73
consumables
Materials
entrusted for 29,547.69 29,547.69 4,834,921.04 4,834,921.04
processing
Total 1,984,331,003.54 108,266,603.15 1,876,064,400.39 1,189,443,929.40 74,131,060.78 1,115,312,868.62
(2) Provision for decline in value of inventories and provision for impairment of contract performance cost
Unit: Yuan
Increase in current period Decrease in current period
Beginning
Items Reversal or Ending balance
balance Provision Others Others
write-off
Raw materials 56,781,506.42 86,611,430.80 58,477,164.19 84,915,773.03
Goods on hand 9,669,035.83 11,312,911.18 5,325,125.42 15,656,821.59
Goods shipped in
3,963,402.85 611,879.28 3,351,523.57
transit
Self-manufactured
semi-finished 3,717,115.68 1,329,283.50 703,914.22 4,342,484.96
product
Total 74,131,060.78 99,253,625.48 65,118,083.11 108,266,603.15
(3) Description of capitalized amount of borrowing costs included in ending balance of inventory
□ applicable √ not applicable
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(4) Description of current amortization amount of contract performance cost
□ applicable √ not applicable
10. Contract assets
□ applicable √ not applicable
11. Assets held for sale
□ applicable √ not applicable
12. Non-current assets due within one year
□ applicable √ not applicable
13. Other current assets
Unit: Yuan
Items Ending balance Beginning balance
Input tax of VAT 102,825,873.72 66,429,956.99
Other taxes paid in advance 14,174,678.37 1,716,313.34
Prepaid and amortized expenses 28,952.04
Total 117,000,552.09 68,175,222.37
14. Debt investment
□ applicable √ not applicable
15. Other debt investment
□ applicable √ not applicable
16. Long-term receivables
□ applicable √ not applicable
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17. Long-term equity investment
Unit: Yuan
Changes in increase/decrease in current period
Adjustm Declaratio
Profit and loss Ending
Beginning Decrea ent to Other n of Provisi Ending
on investment balance of
Investee balance (book Additional se in other change distributio on for balance (book
recognized Others provision for
value) investment invest compreh s in n for cash impair value)
under equity impairment
ment ensive equity dividends ment
method
income or profits
I. Joint venture
II. Associates enterprises
Shenzhen Yuchengxin
Power Technology 9,764,719.19 9,764,719.19
Co., Ltd.
Shenzhen Daka
Optoelectronics Co., 6,502,528.13 -495,808.80 6,006,719.33
Ltd.
Pas Electronic
Technology (Nanjing) 10,000,000.00 -894,781.98 9,105,218.02
Co., Ltd.
Subtotal 6,502,528.13 10,000,000.00 -1,390,590.78 24,876,656.54 9,764,719.19
Total 6,502,528.13 10,000,000.00 -1,390,590.78 24,876,656.54 9,764,719.19
18. Investment in other equity instruments
□ applicable √ not applicable
19. Other non-current financial assets
□ applicable √ not applicable
20. Investment property
(1) Investment property with cost measurement model
√ applicable □ not applicable Unit: Yuan
Items Houses and buildings Land usage right Construction in progress Total
I. Original book value
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1. Beginning balance 94,945,556.51 94,945,556.51
2. Increase in current period
(1) Outsourcing
(2) Transfer in of inventory, fixed
assets and construction in progress
(3) Increase in business merger
3. Decrease in current period
(1) Disposal
(2) Other transfer out
4. Ending balance 94,945,556.51 94,945,556.51
II. Accumulated depreciation and
accumulated amortization
1. Beginning balance 5,707,290.80 5,707,290.80
2. Increase in current period 1,131,575.70 1,131,575.70
(1) Provision or amortization 1,131,575.70 1,131,575.70
3. Decrease in current period
(1) Disposal
(2) Other transfer out
4. Ending balance 6,838,866.50 6,838,866.50
III. Provision for impairment
1. Beginning balance
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 88,106,690.01 88,106,690.01
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2. Beginning book value 89,238,265.71 89,238,265.71
(2) Investment property with fair value measurement model
□ applicable √ not applicable
(3) Investment property without property certificate of title
□ applicable √ not applicable
21. Fixed assets
Unit: Yuan
Items Ending balance Beginning balance
Fixed assets 1,164,624,452.06 1,096,875,640.94
Disposal of fixed assets 385,721.54
Total 1,165,010,173.60 1,096,875,640.94
(1) Fixed assets
Unit: Yuan
Houses and Machinery and Transportation Electronics and
Items Total
buildings equipment equipment other equipment
I. Original book value
1. Beginning balance 752,994,459.37 527,780,882.24 2,365,946.85 160,407,486.10 1,443,548,774.56
2. Increase in current period 289,104.03 123,357,240.61 7,836,532.24 131,482,876.88
(1) Acquisition 289,104.03 92,455,755.13 7,836,532.24 100,581,391.40
(2) Transfer in of construction in
8,517,537.94 8,517,537.94
progress
(3) Increment from enterprises merged 22,383,947.54 22,383,947.54
3. Decrease in current period 2,344,616.13 14,530,058.27 115,910.40 1,279,604.40 18,270,189.21
(1) Disposal or scrap 13,367,404.82 113,173.28 1,153,593.33 14,634,171.43
(2) Exchange rate changes 2,344,616.13 1,162,653.45 2,737.12 126,011.07 3,636,017.78
4. Ending balance 750,938,947.27 636,608,064.58 2,250,036.45 166,964,413.94 1,556,761,462.23
II. Accumulated depreciation
1. Beginning balance 100,672,188.32 169,824,966.14 1,905,112.82 74,270,866.34 346,673,133.62
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2. Increase in current period 9,126,574.35 37,214,947.48 153,600.48 4,568,445.96 51,063,568.27
(1) Provision 9,126,574.35 36,075,666.33 153,600.48 4,568,445.96 49,924,287.12
(2) Increment from enterprises merged 1,139,281.15 1,139,281.15
3. Decrease in current period 216,523.50 4,260,491.91 52,496.32 1,070,179.98 5,599,691.72
(1) Disposal or scrap 4,152,121.49 51,045.29 1,000,489.84 5,203,656.62
(2) Exchange rate changes 216,523.50 108,370.42 1,451.03 69,690.14 396,035.10
4. Ending balance 109,582,239.17 202,779,421.71 2,006,216.98 77,769,132.32 392,137,010.17
III. Provision for impairment
1. Beginning balance
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal or scrap
4. Ending balance
IV. Book value
1. Ending book value 641,356,708.10 433,828,642.87 243,819.47 89,195,281.62 1,164,624,452.06
2. Beginning book value 652,322,271.05 357,955,916.10 460,834.03 86,136,619.76 1,096,875,640.94
(2) Temporary idle fixed assets
□ applicable √ not applicable
(3) Fixed assets leased out through operating lease
□ applicable √ not applicable
(4) Fixed assets without certificate of title
Unit: Yuan
Items Book value Reasons for failure to complete certificate of title
Chongqing Yiyuan 85,379,333.91 It is being carried out
India Plant 83,550,035.39 It is being carried out
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(5) Disposal of fixed assets
Unit: Yuan
Items Ending balance Beginning balance
Disposal of fixed assets 385,721.54
Total 385,721.54
22. Construction in progress
Unit: Yuan
Items Ending balance Beginning balance
Construction in progress 386,601,265.30 292,474,798.41
Total 386,601,265.30 292,474,798.41
(1) Situation of construction in progress
Unit: Yuan
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Phase I of Topband Huizhou
1,459,431.59 1,459,431.59
No. 2 Industrial Park
Chongqing Yiyuan 1,950,206.53 1,950,206.53 1,950,161.78 1,950,161.78
Huizhou Plant Phase II 12,069,381.93 12,069,381.93 19,675,613.36 19,675,613.36
India Plant 15,680,714.79 15,680,714.79 12,113,644.14 12,113,644.14
Ningbo East China
257,123,749.91 257,123,749.91 208,173,673.86 208,173,673.86
Operation Center
Plant in Dong Nai, Vietnam 60,769,246.59 60,769,246.59 14,686,143.94 14,686,143.94
Equipment to be
32,562,368.39 32,562,368.39 34,312,847.55 34,312,847.55
commissioned
Other sporadic works 4,986,165.57 4,986,165.57 1,562,713.78 1,562,713.78
Total 386,601,265.30 386,601,265.30 292,474,798.41 292,474,798.41
(2) Changes of major projects under construction in the current period
Unit: Yuan
162
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Includin
Proporti
g:
Amount on of Cumula Capitali
capitaliz
of fixed cumulati ted zation
ation
assets Other ve Project amount rate of
Amount Beginning Increase in Ending amount Source of
Project name transferr decreases in investme progre of interest
budgeted balance current period balance of capitals
ed in current period nt in the ss interest in
interest
current project capitali current
in
period to zed period
current
budget
period
Phase I of
Topband Fund
650,000,000.00 1,459,431.59 1,459,431.59 0.22% 0.20%
Huizhou No. 2 raising
Industrial Park
Chongqing Fund
200,000,000.00 1,950,161.78 44.75 1,950,206.53 96.49% 96.00%
Yiyuan raising
Huizhou Plant Fund
290,000,000.00 19,675,613.36 3,347,018.58 31,597.63 10,921,652.38 12,069,381.93 99.18% 99.00%
Phase II raising
India Plant 136,004,000.00 12,113,644.14 3,567,070.66 15,680,714.79 84.66% 84.00% Others
Funds
Ningbo East raised
China Operation 465,704,300.00 208,173,673.86 48,950,076.05 257,123,749.91 55.21% 55% through
Center convertible
bonds
Plant in Dong
140,000,000.00 14,686,143.94 46,083,102.65 60,769,246.59 32.92% 32% Others
Nai, Vietnam
Total 1,881,708,300.00 256,599,237.08 103,406,744.28 31,597.63 10,921,652.38 349,052,731.34 -- -- --
(3) Provision for impairment of project under construction in current period
□ applicable √ not applicable
(4) Engineering materials
□ applicable √ not applicable
23. Productive biological assets
(1) Productive biological assets with cost measurement model
□ applicable √ not applicable
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(2) Productive biological assets with fair value measurement model
□ applicable √ not applicable
24. Oil and gas assets
□ applicable √ not applicable
25. Use right assets
Unit: Yuan
Items Houses and buildings Total
I. Original book value
1. Beginning balance 30,939,385.41 30,939,385.41
2. Increase in current period 49,184,898.48 49,184,898.48
3. Decrease in current period 4,935,343.72 4,935,343.72
(1) Disposal 4,935,343.72 4,935,343.72
4. Ending balance 75,188,940.17 75,188,940.17
II. Accumulated depreciation and
accumulated amortization
1. Beginning balance
2. Increase in current period 6,241,851.65 6,241,851.65
(1) Provision 6,241,851.65 6,241,851.65
3. Decrease in current period 451,215.39 451,215.39
(1) Disposal 451,215.39 451,215.39
4. Ending balance 5,790,636.26 5,790,636.26
III. Book value
1. Ending book value 69,398,303.91 69,398,303.91
2. Beginning book value 30,939,385.41 30,939,385.41
26. Intangible assets
(1) Situation of intangible assets
Unit: Yuan
164
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Non-patented
Items Land usage right Patent right Software Trademark Total
technology
I. Original book value
1. Beginning balance 124,135,401.04 435,321.58 329,300,501.38 22,316,899.23 9,728,450.00 485,916,573.23
2. Increase in current period 44,136,315.00 43,814,900.08 911,508.13 88,862,723.21
(1) Acquisition 44,136,315.00 911,508.13 45,047,823.13
(2) Internal R&D 43,814,900.08 43,814,900.08
(3) Increase in business
merger
3. Decrease in current
531,982.64 531,982.64
period
(1) Disposal
(2) Exchange rate changes 531,982.64 531,982.64
4. Ending balance 167,739,733.40 435,321.58 373,115,401.46 23,228,407.36 9,728,450.00 574,247,313.80
II. Accumulated
amortization
1. Beginning balance 11,381,245.39 435,321.58 142,607,782.33 17,038,370.79 4,659,312.50 176,122,032.59
2. Increase in current period 1,519,038.10 27,587,393.90 1,480,426.99 482,775.00 31,069,633.99
(1) Provision 1,519,038.10 27,587,393.90 1,480,426.99 482,775.00 31,069,633.99
3. Decrease in current
158,886.94 158,886.94
period
(1) Disposal
(2) Exchange rate changes 158,886.94 158,886.94
4. Ending balance 12,741,396.55 435,321.58 170,195,176.23 18,518,797.78 5,142,087.50 207,032,779.64
III. Provision for
impairment
1. Beginning balance
2. Increase in current period
(1) Provision
3. Decrease in current
period
(1) Disposal
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4. Ending balance
IV. Book value
1. Ending book value 154,998,336.85 202,920,225.23 4,709,609.58 4,586,362.50 367,214,534.16
2. Beginning book value 112,754,155.65 186,692,719.05 5,278,528.44 5,069,137.50 309,794,540.64
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end of
the period accounted for 7.63%.
(2) Situation of Land usage right without property certificate of title
□ applicable √ not applicable
27. Development expenditure
Unit: Yuan
Increase in current period Decrease in current period
Transferred
Beginning Internal
Items Recognized as to current Ending balance
balance development Others
intangible assets profit and
expenditure
loss
Intelligent controller
45,281,204.14 38,785,462.54 26,808,817.81 57,257,848.87
project
Lithium battery project 3,803,053.77 5,653,726.73 4,405,703.64 5,051,076.86
Motor and control
5,656,596.57 6,841,040.78 2,918,579.55 9,579,057.80
system project
Other projects 13,777,521.31 7,580,356.47 9,681,799.08 11,676,078.70
Total 68,518,375.79 58,860,586.52 43,814,900.08 83,564,062.23
28. Goodwill
(1) Original book value of goodwill
Unit: Yuan
Increase in current Decrease in
period current period
Name of investee or matters forming goodwill Beginning balance Ending balance
Resulted from
Disposal
business merger
Shenzhen YAKO Automation Technology Co., Ltd. 107,314,446.71 107,314,446.71
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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.
Hangzhou Zhidong Motor Technology Co., Ltd. 1,322,921.77 1,322,921.77
Taixing Ninghui Lithium Battery Co., Ltd. 1,755,000.88 1,755,000.88
Shenzhen Tengyi Industrial Co., Ltd. 192,000.00 192,000.00
Total 165,412,960.75 1,947,000.88 167,359,961.63
(2) Provision for impairment of goodwill
Unit: Yuan
Increase in Decrease in
Beginning
Name of investee or matters forming goodwill current period current period Ending balance
balance
Provision Disposal
Shenzhen Allied Control System Co., Ltd. 53,768,699.68 53,768,699.68
Shenzhen Meanstone Intelligent Technology Co., Ltd. 3,006,892.59 3,006,892.59
Total 56,775,592.27 56,775,592.27
Information about the asset group or portfolio of goodwill
Description of goodwill impairment test process, key parameters (e.g. growth rate during the forecast period,
growth rate during the stabilization period, profitability, discount rate, forecast period, etc. when the present value
of future cash flow is expected) and method for recognizing impairment loss of goodwill:
Impact of goodwill impairment test
29. Long-term deferred expense
Unit: Yuan
Increase in current Current amortization Other reduced
Items Beginning balance Ending balance
period amount amount
Decoration cost 71,797,383.61 22,728,212.12 11,905,866.86 122,393.48 82,497,335.39
Others 280,287.48 337,787.20 90,336.28 527,738.40
Total 72,077,671.09 23,065,999.32 11,996,203.14 122,393.48 83,025,073.79
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30. Deferred income tax assets / deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: Yuan
Ending balance Beginning balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for asset
190,396,981.24 29,564,214.81 149,075,252.50 23,312,424.21
impairment
Deductible loss 53,662,926.67 11,290,513.09 43,740,568.84 10,286,420.54
Amortization differences
46,555,870.17 6,991,661.87 36,167,726.46 5,441,721.65
on intangible assets
Deferred income 15,694,300.00 2,354,145.00 14,279,770.00 2,141,965.50
Option fee 178,837,560.94 26,825,634.14 93,402,952.30 14,010,442.85
Total 485,147,639.02 77,026,168.91 336,666,270.10 55,192,974.75
(2) Deferred income tax liabilities without offset
Unit: Yuan
Ending balance Beginning balance
Items Taxable temporary Deferred income Taxable temporary Deferred income tax
difference tax liabilities difference liabilities
Valuation and appreciation of assets of
3,934,809.78 590,221.47 5,279,699.53 791,954.93
business merger under different control
Changes in fair value of trading
160,387,159.68 24,058,073.95 62,074,391.17 9,311,158.68
financial assets
Book-tax difference in rental income 4,141,899.22 1,035,474.81 3,411,531.24 852,882.81
Others 3,694,680.02 836,370.20 3,830,509.95 863,864.88
Total 172,158,548.70 26,520,140.43 74,596,131.89 11,819,861.30
(3) Deferred income tax assets or liabilities listed by net amount after offset
Unit: Yuan
Amount of offset between Ending balance of Amount of mutual offset Beginning balance of
deferred income tax deferred income tax between deferred income deferred income tax
Items
assets and liabilities at the assets or liabilities after tax assets and liabilities at assets or liabilities after
end of the period offset the beginning of the offset
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period
Deferred income tax
77,026,168.91 55,192,974.75
assets
Deferred income tax
26,520,140.43 11,819,861.30
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: Yuan
Items Ending balance Beginning balance
Deductible loss 17,378,644.86 14,481,679.98
Provision for asset impairment 6,466,269.06 3,393,804.05
Total 23,844,913.92 17,875,484.03
(5) Deductible loss of unrecognized deferred income tax assets will mature in the following years
Unit: Yuan
Year Ending amount Beginning amount Remarks
2021
2022
2023
2024
2025
No time limit 17,378,644.86 14,481,679.98
Total 17,378,644.86 14,481,679.98 --
31. Other non-current assets
Unit: Yuan
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepaid long-term
107,814,528.35 0.00 107,814,528.35 34,639,355.39 0.00 34,639,355.39
assets
Total 107,814,528.35 0.00 107,814,528.35 34,639,355.39 0.00 34,639,355.39
169
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32. Short-term loans
(1) Classification of short-term loans
Unit: Yuan
Items Ending balance Beginning balance
Credit loan 135,890,741.95 402,151,500.00
Total 135,890,741.95 402,151,500.00
(2) Overdue short-term loans
□ applicable √ not applicable
33. Trading financial liabilities
□ applicable √ not applicable
34. Derivative financial liabilities
□ applicable √ not applicable
35. Notes payable
Unit: Yuan
Category Ending balance Beginning balance
Bank acceptance bill 1,009,181,787.24 715,574,653.91
Total 1,009,181,787.24 715,574,653.91
The total amount of notes payable due but unpaid at the end of the period was 0.00 yuan.
36. Accounts payable
(1) Accounts payable listed
Unit: Yuan
Items Ending balance Beginning balance
Within 1 year 1,878,591,862.69 1,540,652,638.39
1~2 years 1,487,227.83 7,398,205.08
2~3 years 819,094.56 484,275.57
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More than 3 years 1,653,373.80 1,371,220.68
Total 1,882,551,558.88 1,549,906,339.72
(2) Significant accounts payable aged over 1 year
□ applicable √ not applicable
37. Advances received
(1) Advances received listed
Unit: Yuan
Items Ending balance Beginning balance
Within 1 year 294,460.10 487,267.17
Total 294,460.10 487,267.17
(2) Significant advances received aged over 1 year
□ applicable √ not applicable
38. Contractual liabilities
Unit: Yuan
Items Ending balance Beginning balance
Advances on sales 78,883,302.66 72,576,117.56
Total 78,883,302.66 72,576,117.56
39. Employee compensation payable
(1) Employee compensation payable listed
Unit: Yuan
Decrease in current
Items Beginning balance Increase in current period Ending balance
period
I. Short-term compensation 174,617,927.43 652,973,804.59 742,084,760.65 85,506,971.37
II. Post-employment benefits -
885,836.69 25,664,714.99 26,455,069.90 95,481.78
defined contribution plan
Total 175,503,764.12 678,638,519.58 768,539,830.55 85,602,453.15
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(2) Short-term compensation listed
Unit: Yuan
Increase in current
Items Beginning balance Decrease in current period Ending balance
period
1. Wages, bonuses, allowances
173,067,023.16 622,428,438.27 711,793,372.41 83,702,089.02
and subsidies
2. Employee benefits 261,063.79 12,419,233.42 12,610,509.35 69,787.86
3. Social insurance expense 231,998.20 8,896,524.21 9,073,809.42 54,712.99
Including: medical
210,694.44 7,731,783.58 7,890,172.26 52,305.76
insurance expense
Industrial injury
13,785.25 282,946.36 294,882.39 1,849.22
insurance expense
Maternity
7,518.51 881,794.27 888,754.77 558.01
insurance expense
4. Housing provident fund 8,372,320.38 8,372,320.38
5. Trade union funds and staff
209.26 1,046.30 1,046.30 209.26
education funds
6. Others 1,057,633.02 856,242.01 233,702.79 1,680,172.24
Total 174,617,927.43 652,973,804.59 742,084,760.65 85,506,971.37
(3) Defined contribution plan listed
Unit: Yuan
Items Beginning balance Increase in current period Decrease in current period Ending balance
1. Basic endowment
861,046.07 25,176,354.69 25,944,580.27 92,820.49
insurance
2. Unemployment
24,790.62 488,360.30 510,489.63 2,661.29
insurance expense
Total 885,836.69 25,664,714.99 26,455,069.90 95,481.78
40. Taxes payable
Unit: Yuan
Items Ending balance Beginning balance
VAT (value-added tax) 1,979,565.50 12,524,919.27
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Corporate income tax 13,520,055.78 41,728,458.33
Individual income tax 15,788,083.28 5,003,297.27
City maintenance and construction tax 180,014.22 188,254.81
Education surcharge 128,581.61 134,467.71
Property tax 2,502,358.84 429,548.57
Other taxes 240,867.64 247,069.64
Total 34,339,526.87 60,256,015.60
41. Other payables
Unit: Yuan
Items Ending balance Beginning balance
Other payables 69,253,389.96 57,160,615.93
Total 69,253,389.96 57,160,615.93
(1) Interest payable
□ applicable √ not applicable
(2) Dividends payable
□ applicable √ not applicable
(3) Other payables
1) Other payables listed by nature
Unit: Yuan
Items Ending balance Beginning balance
Payment for equipment 33,310,693.24 23,095,663.10
Payment for tooling 804,693.97 654,303.42
Transportation expenses 8,252,605.28 7,252,963.43
Rent and utilities 4,866,958.37 3,105,044.79
Margin, deposit 6,528,933.22 7,034,660.06
Wages for labor dispatching 878,445.97 2,150,932.92
Consultation fee 691,808.49 1,515,229.67
Fuel card fee 1,503,438.82
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Payment of decoration 413,135.84 6,055,915.48
Others 2,916,749.58 4,792,464.24
Housing subsidy for talents 1,259,366.00
Equity acquisition amount payable 9,330,000.00
Total 69,253,389.96 57,160,615.93
2) Other significant payables aged over 1 year
□ applicable √ not applicable
42. Liabilities held for sale
□ applicable √ not applicable
43. Non-current liabilities due within one year
√ applicable □ not applicable
Items Ending balance Beginning balance
Long-term loans due within one year 21,740,000.00
Bonds payable due within one year
Long-term accounts payable due within 1 year
Lease liabilities due within 1 year 17,151,387.34
Total 38,891,387.34
44. Other current liabilities
□ applicable √ not applicable
45. Long-term loans
(1) Classification of long-term loans
Unit: Yuan
Items Ending balance Beginning balance
Mortgage loan 169,564,000.00 200,000,000.00
Total 169,564,000.00 200,000,000.00
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46. Bonds payable
□ applicable √ not applicable
47. Lease liabilities
Unit: Yuan
Items Ending balance Beginning balance
Lease liabilities 54,349,922.77 30,939,385.41
Total 54,349,922.77 30,939,385.41
48. Long-term accounts payable
□ applicable √ not applicable
49. Long-term employee compensation payable
□ applicable √ not applicable
50. Estimated liabilities
□ applicable √ not applicable
51. Deferred income
Unit: Yuan
Beginning Increase in current Decrease in
Items Ending balance Reasons for formation
balance period current period
Governmental Governmental subsidies related to
14,624,770.00 3,120,700.00 1,761,170.00 15,984,300.00
subsidies assets
Total 14,624,770.00 3,120,700.00 1,761,170.00 15,984,300.00 --
Items involving government subsidies:
Unit: Yuan
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Amount Amount Amount of
New subsidy included in included in write-down
Beginning Other Ending Asset-related/re
Liability items amount in non-operating other income costs in
balance changes balance venue-related
current period income in in current current
current period period period
Special fund for the industrialization
of high-efficiency energy-saving 1,300,000.00 97,500.00 1,202,500.00 Asset-related
rare-earth permanent magnet motor
R&D equip ment project of intelligent
home management system such as 394,500.00 131,500.00 263,000.00 Asset-related
IoT cloud computing technology
R&D pro ject of key technology for
clean energy DC system 225,000.00 25,000.00 200,000.00 Asset-related
measurement
Nano lithiu m iron phosphate power
750,000.00 125,000.00 625,000.00 Asset-related
battery project
Key technology research and
development of 18650-2.8A.h high 561,000.00 102,000.00 459,000.00 Asset-related
power battery
Intelligent grid connected project of
distributed photovoltaic power 120,000.00 30,000.00 90,000.00 Asset-related
station
R&D pro ject of 60A solar charging
controller with peak power tracking 530,000.00 60,000.00 470,000.00 Asset-related
technology
R&D pro ject of un manned Robot
3,000,000.00 150,000.00 2,850,000.00 Asset-related
Cleaner
Key technology research and
development project of rare-earth
permanent magnet brushless DC 4,000,000.00 4,000,000.00 Asset-related
motor and controller with high speed
ratio and variable frequency
Technological transformat ion
supported by 2020 anti-epidemic 3,744,270.00 1,040,170.00 2,704,100.00 Asset-related
national debt funds
Special project for technical
transformation of intelligent
3,120,700.00 3,120,700.00 Asset-related
controllers and lithiu m batteries in
2021
Total 14,624,770.00 3,120,700.00 1,761,170.00 15,984,300.00
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52. Other non-current liabilities
□ applicable √ not applicable
53. Share capital
Unit: Yuan
Changes in the period (+, -)
Beginning Conversion of
Issuance of new Stock Ending balance
balance accumulation Others Subtotal
shares dividend
fund into shares
Total number
1,135,216,809.00 103,037,863.00 0.00 103,037,863.00 1,238,254,672.00
of shares
Other description:
Note: (1) The 6th Meeting of the 7th Board of Directors deliberated and approved the Proposal on the Second
Exercise Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and
the Proposal on Adjustment of the Incentive Objects and the Number of Stock Options of 2018 Stock Option
Incentive Plan: there are 567 incentive objects in the second exercise period of the 2018 stock option incentive
plan in the Company, in total of 10,950,600 shares of stock options, that meet the exercise conditions and can be
exercised. The Company plans to adopt the independent exercise mode. As the incentive objects Cheng Xuejing
and Lin Qiao resigned and left the Company for personal reasons, 80,500 stock options granted but not exercised
shall not be exercised and shall be uniformly canceled by the Company. The procedures such as the review of the
adjustment of the number of such options will be performed later. As of June 30, 2021, a total of 10.9326 million
stock options were exercised by 565 incentive objects in the second exercise period, increasing the Company's
share capital by 10.9326 million yuan. After the exercise of the stock options, the share capital increased to
1,146,149,409.00 yuan.
(2) According to the resolution of the 2019 Annual General Meeting of Shareholders held by the Company in
2020 and based on the approval in the CSRC's document numbered ZJXK [2020] No. 1865, the Company
privately issued not more than 309,243,655 new shares. On May 20, 2021, the Company privately issued
92,105,263 ordinary shares (A shares) in RMB to specific investors at the price of 11.40 yuan per share. After the
issuance, the registered capital of the Company was increased to 1,238,254,672.00 yuan.
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54. Other equity instruments
□ applicable √ not applicable
55. Capital reserve
Unit: Yuan
Decrease in current
Items Beginning balance Increase in current period Ending balance
period
Capital premium (share
923,946,067.35 995,999,836.77 167,046.15 1,919,778,857.97
premium)
Other capital reserve 32,787,972.40 16,989,701.54 9,470,150.51 40,307,523.43
Total 956,734,039.75 1,012,989,538.31 9,637,196.66 1,960,086,381.40
Other description, including the changes in increase and decrease in current period and the reasons for changes:
Note 1: The increase in share premium for the year was 995,999,836.77 yuan, of which: 944,741,805.72 yuan was
increased due to the non-public offering of shares, 9,183,384 yuan of option expenses previously included in other
capital surplus was transferred to share premium due to the unlocking of options, and 38,154,774 yuan of the
excess of issuance proceeds received from the unlocking of options was included over the balance of other capital
surplus previously accrued. The deferred income tax of 3,919,873.05 yuan corresponding to the excess of pre-tax
deductible expenses of the exercised options in the current year was included in the share premium. The decrease
in share premium of 167,046.15 yuan for the year was mainly due to the write-down of capital surplus share
premium of 167,046.15 yuan as a result of the dilution of minority shareholders' interests by Meanstone
Intelligent's capital increase.
Note 2: Other capital reserves increased by 16,989,701.54 yuan this year, including 3,237,317.25 yuan of
share-based payment expenses confirmed according to the stock option plan in this period; the deferred income
tax assets of 13,752,384.29 yuan were recognized according to the pretax deductible stock option expenses
expected to be exercised in the future; other capital reserves decreased by 9,470,150.51 yuan this year, including
decreasing other capital reserves by 9,183,384.00 yuan due to the transfer of the stock option exercise into the
capital premium; and decreasing other capital reserves by 286,766.51 yuan due to the offset of share-based
payment expenses arising from the departure of incentive objects.
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56. Treasury shares
Unit: Yuan
Beginning Increase in current Decrease in
Items Ending balance
balance period current period
Obligation to repurchase the Company's shares
80,017,965.68 80,017,965.68
due to equity incentive
Total 80,017,965.68 80,017,965.68
57. Other comprehensive income
Unit: Yuan
Amount incurred in current period
Less: current Less: current
profits and retained
Attributa
losses earnings
ble to
Beginning Amount before included in included in Less: Attributable to
Items minority Ending balance
balance income tax in other other income tax parent company
sharehol
current period comprehensiv comprehensi expense after tax
ders
e income in ve income in
after tax
the previous the previous
period period
II. Other comprehensive income
that is reclassified into profits and -24,555,229.97 -17,975,075.23 32,945.74 -18,008,020.97 -42,563,250.94
losses
Translation difference of
foreign currency financial -30,124,805.01 -17,755,436.98 -17,755,436.98 -47,880,241.99
statements
Others 5,569,575.04 -219,638.25 32,945.74 -252,583.99 5,316,991.05
Total amount of other
-24,555,229.97 -17,975,075.23 32,945.74 -18,008,020.97 -42,563,250.94
comprehensive income
58. Special reserve
□ applicable √ not applicable
59. Surplus reserve
Unit: Yuan
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Decrease in current
Items Beginning balance Increase in current period Ending balance
period
Statutory surplus reserve 151,359,957.53 151,359,957.53
Total 151,359,957.53 151,359,957.53
60. Undistributed profit
Unit: Yuan
Items Current period Prior period
Undistributed profit at the end of last period before
1,324,944,369.91 866,301,932.11
adjustment
Undistributed profit at the beginning of last period
1,324,944,369.91 866,301,932.11
after adjustment
Plus: net profit attributable to the owners of the
428,185,704.03 533,516,814.04
parent company in current period
Less: withdrawal of statutory surplus reserve 24,075,745.79
Common Stock dividends payable 56,565,524.45 50,798,630.45
Undistributed profit at the end of the period 1,696,564,549.49 1,324,944,369.91
Details of undistributed profit at the beginning of adjustment period:
1. Due to retroactive adjustment under the Accounting Standards for Business Enterprises and other relevant new regulations, the
undistributed profit at the beginning of the period is affected by RMB 0.
2. Due to changes in accounting policies, the undistributed profit at the beginning of the period is affected by RMB 0.
3. Due to correction of significant accounting errors, the undistributed profit at the beginning of the period is affected by RMB 0.
4. Due to changes in enterprise merging scope under the same control, the undistributed profit at the beginning of the period is
affected by RMB 0.
5. The total amount of other adjustments affects the undistributed profit at the beginning of the period by RMB 0.
61. Operating income and operating costs
Unit: Yuan
Amount incurred in current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 3,613,778,665.34 2,751,947,592.34 1,977,022,442.54 1,517,922,534.93
Other business 30,266,947.06 13,348,149.05 20,405,458.16 8,175,723.61
Total 3,644,045,612.40 2,765,295,741.39 1,997,427,900.70 1,526,098,258.54
Information related to performance obligations:
For the sales of goods to customers, the Company recognizes the income when the control of the goods is
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transferred, that is, when the goods are transported to the designated place of the other party, or delivered to the
carrier designated by the other party, or when they are delivered to the other party and their acceptance is
completed. As the delivery of the goods to the customer represents the right to receive the contract consideration
unconditionally, and the maturity of the payment only depends on the passage of time, the Company recognizes an
amount receivable when the goods are delivered to the customer. When the customer pays the purchase price in
advance, the Company recognizes the transaction amount received as a contract liability until the goods are
delivered to the customer.
The amount of income corresponding to the performance obligations that have signed contracts but have not been
performed or completed at the end of this reporting period is 2.406 billion yuan, and the income of the above
amount is expected to be recognized within one year.
62. Taxes and surcharges
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
City maintenance and construction tax 4,966,766.89 3,841,048.56
Education surcharge 3,547,687.35 2,748,128.95
Property tax 3,185,254.25 2,937,455.95
Land use tax 267,163.92 267,163.93
Stamp duty 1,278,559.97 867,480.37
Others 32,811.86 6,921.92
Total 13,278,244.24 10,668,199.68
63. Sales expenses
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Employee compensation 41,877,611.55 28,005,041.33
Transportation expenses 1,403,606.36 11,865,194.00
Business entertainment expenses 8,822,018.86 4,011,636.41
Travel expenses 4,242,288.17 2,505,381.06
Intermediary service expenses 4,907,544.95 6,810,355.87
Exhibition expenses 1,032,138.04 585,300.88
Materials expenses 5,050,324.90 1,593,730.27
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Mail expenses 1,170,285.37 970,486.35
Advertising expenses 916,778.99 109,433.35
Option fee 320,885.87 573,816.62
Others 7,146,401.53 2,892,048.68
Total 76,889,884.59 59,922,424.82
64. Administrative expenses
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Employee compensation 59,721,623.90 38,687,179.37
Decoration cost 6,465,540.78 4,737,307.62
Intermediary service expenses 4,322,142.87 4,057,017.80
Depreciation expense 6,619,979.60 3,704,993.16
Amortization of intangible assets 2,677,290.87 2,341,492.81
Rent and utilities 3,404,885.34 1,051,974.50
Property insurance expenses 758,226.43 842,406.49
Office expenses 1,246,496.01 1,145,389.13
Option fee 571,018.75 1,117,093.98
Travel expenses 802,360.66 341,909.63
Recruitment expenses 906,502.78 1,187,624.20
Others 7,346,751.70 7,112,383.25
Total 94,842,819.69 66,326,771.94
65. R&D expenses
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Employee compensation 107,357,106.03 85,346,278.12
Amortization of intangible assets 27,849,377.95 21,036,485.82
Material expenses 11,634,261.27 6,816,162.14
Depreciation expense 4,465,093.77 2,763,557.13
Option fee 1,590,663.41 2,206,846.64
Tooling expense 6,365,344.99 3,080,200.51
Travel expenses 1,805,639.42 1,255,044.78
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Intermediary service expenses 1,867,115.15 677,432.91
Utilities 1,636,703.79 1,011,072.65
Rentals 922,869.58 810,251.65
Others 9,273,550.95 8,749,409.16
Total 174,767,726.31 133,752,741.51
66. Financial expenses
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Interest expense 6,676,232.42 27,903,509.75
Less: interest income 4,397,537.66 4,449,371.38
Profit or loss on exchange 23,768,783.43 -8,918,245.74
Others 27,713,678.97 14,417,216.74
Total 53,761,157.16 28,953,109.37
67. Other revenues
Unit: Yuan
Source for other revenues Amount incurred in current period Amount incurred in prior period
Governmental subsidies 6,479,445.63 15,939,969.80
Added-value tax refund on demand 4,443,028.35 2,805,391.14
Return of individual income tax service
1,083,707.40 759,307.14
charge
Total 12,006,181.38 19,504,668.08
68. Investment revenue
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Long-term equity investment revenue
-1,390,590.78 -144,574.55
accounted by equity method
Investment revenue from disposal of trading
24,066,351.32 74,522,738.91
financial assets
Investment revenue of financial products 1,200,855.83 3,116,324.00
Total 23,876,616.37 77,494,488.36
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69. Net exposure hedging revenue
□ applicable √ not applicable
70. Fair value change revenue
Unit: Yuan
Sources of income from change in fair
Amount incurred in current period Amount incurred in prior period
value
Trading financial assets 98,312,768.52 10,951,270.47
Trading financial liabilities -7,240,100.01
Total 98,312,768.52 3,711,170.46
71. Credit impairment loss
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Bad debt loss of other receivables -1,036,235.40 1,953,668.63
Bad debt loss of accounts receivable -14,198,551.72 1,034,327.66
Bad debt loss of commercial acceptance
-148,671.09 3,417.61
bill
Bad debt loss of receivables financing 219,638.25
Total -15,163,819.96 2,991,413.90
72. Asset impairment loss
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Loss on inventory valuation and contract performance cost
-99,292,387.41 -23,788,421.51
impairment loss
Total -99,292,387.41 -23,788,421.51
73. Assets disposal revenue
Unit: Yuan
Source of assets disposal revenue Amount incurred in current period Amount incurred in prior period
Revenue from disposal of non-current -317,178.75 -893,602.45
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assets
Total -317,178.75 -893,602.45
74. Nonbusiness income
Unit: Yuan
Amount incurred in current Amount included in the current
Items Amount incurred in prior period
period non-recurring profit and loss
Supplied goods deduction
49,698.80 9,500.00 49,698.80
income
Others 1,531,383.00 968,334.68 1,531,382.99
Total 1,581,081.80 977,834.68 1,581,081.79
Government subsidy included in the current profits and losses:
Unit: Yuan
Whether the
subsidy Whether
Grant Amount Amount Asset-related/
Grant Nature affect the it is the
Subsidy project reason incurred in the incurred in the revenue-relate
entity type profit and special
s current period last period d
loss of the subsidy
year
Related to
Software tax rebate 4,443,028.35 2,805,391.14
revenue
Related to
Return of individual income tax service charge 1,083,707.40 759,307.14
revenue
Related to
R & D expense subsidy 1,465,000.00 1,422,600.00
revenue
Subsidy from the foreign trade quality growth Related to
1,453,557.00
support program of the bureau of commerce revenue
Technical transformation project of the intelligent
Related to
controller and lithium battery automation 832,155.00
revenue
production line
Related to
Industrial and commercial electricity subsidy 459,804.80 65,447.97
revenue
Related to
Provincial economic promotion subsidy in 2021 300,000.00
revenue
Related to
Training replaced for operation subsidy 288,500.00
revenue
Technological transformation supported by 2020 208,015.00 Asset-related
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anti-epidemic national debt funds
Related to
Patent application subsidy 157,650.00 169,500.00
revenue
R&D project of unmanned Robot Cleaner 150,000.00 Asset-related
Research and development equipment funding of
smart home management system based on Internet 131,500.00 131,500.00 Asset-related
of Things cloud computing technology
Nano lithium iron phosphate power battery project 125,000.00 125,000.00 Asset-related
Financial support fund of Xinqiao Town of Related to
110,000.00
Songjiang District of Shanghai revenue
High rate 18650-2.8Ah power battery key
102,000.00 102,000.00 Asset-related
technology research and development project
Related to
Subsidy for the talent quality improvement project 100,000.00
revenue
Industrialization of high efficiency energy saving
97,500.00 97,500.00 Asset-related
motor for permanent magnet with rare earth
Related to
Policy measure bonus 70,000.00
revenue
Related to
Exhibition subsidy 68,400.00 5,000.00
revenue
Related to
Employment filing subsidy 65,000.00
revenue
Related to
Business development subsidy 60,258.00
revenue
Research and development of 60A solar charging
60,000.00 60,000.00 Asset-related
controller with peak power tracking technology
Urban land use tax exemption and subsidy due to Related to
43,592.50
the epidemic revenue
Intelligent grid connected project of distributed
30,000.00 30,000.00 Asset-related
photovoltaic power station
Clean energy projects subsidy 25,000.00 25,000.00 Asset-related
Related to
Position stabilization subsidy 24,413.33 482,937.13
revenue
Related to
Industrial enterprise bonus 20,000.00
revenue
Related to
Ningbo demonstration project subsidy 20,000.00
revenue
Subsidy for newly recruited Hubei employees of 7,000.00 Related to
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small, medium-sized and micro enterprises revenue
Related to
Subsidy for software copyright registration 5,100.00
revenue
Related to
Return of unemployment insurance premium 5,991,047.80
revenue
Support and subsidy for enterprises to expand Related to
2,511,000.00
production and increase efficiency revenue
Related to
Export premium subsidy 1,552,992.00
revenue
Related to
Two-tax financial subsidy 1,540,000.00
revenue
Special subsidy for technological transformation
Related to
and subsidy for technological transformation 330,000.00
revenue
investment projects
Related to
Reward for scale growth of industrial enterprises 300,000.00
revenue
Double promotion funding for technically
Related to
innovative doubling special funding plan quality 280,000.00
revenue
brand
Enterprise high-tech enterprise recognition award Related to
200,000.00
subsidy revenue
Related to
Subsidy project for stabilizing growth 200,000.00
revenue
Related to
Double support plan for high-tech enterprises 100,000.00
revenue
Subsidy for special funds for intellectual property Related to
59,998.00
protection revenue
Subsidy for integration of informatization and Related to
50,000.00
industrialization revenue
Related to
Maternity allowance 27,563.87
revenue
Related to
Refund of sewage charges 23,795.10
revenue
Subsidy for domestic market development of Related to
17,480.00
enterprises revenue
Related to
Pre-position training subsidy 14,600.00
revenue
Related to
Subsidy for domestic market development projects 12,140.00
revenue
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Related to
VAT exemption for recruitment of veterans 9,000.00
revenue
Related to
Subsidy for Party construction funds 3,000.00
revenue
Refund of service fees for urban construction tax Related to
624.64
and surtax collected on an agency basis revenue
Refund of service fees for urban construction tax Related to
243.29
and surtax deducted on an agency basis revenue
Total 12,006,181.38 19,504,668.08
75. Non-operating expenses
Unit: Yuan
Amount incurred in current Amount incurred in prior Amount included in the current
Items
period period non-recurring profit and loss
External donations 50,000.00 50,000.00
Loss on damage and scrapping
148,616.46 854,624.88 148,616.46
of non-current assets
Customer quality deduction
3,039,355.65 1,659,827.00 3,039,355.65
expenditure
Others 1,248,193.58 654,206.23 1,248,193.58
Total 4,486,165.70 3,168,658.11 4,486,165.70
76. Income tax expense
(1) Table of income tax expense
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Current income tax expense 24,865,568.64 27,473,081.87
Deferred income tax expense 20,774,273.52 51,227.15
Total 45,639,842.16 27,524,309.02
(2) Adjustment process of accounting profit and income tax expense
Unit: Yuan
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Items Amount incurred in current period
Total profits 481,727,135.27
Income tax expenses calculated at statutory / applicable tax rates 72,259,070.29
Impact of different tax rates on subsidiaries 191,776.66
Effect of income tax adjustment in previous period -3,723,025.97
Impact of non-deductible costs, expenses and losses 880,932.65
Impact of deductible loss of unrecognized deferred income tax assets in
-348,905.11
previous period
Impact of deductible temporary difference or deductible loss of unrecognized
314,487.96
deferred income tax assets in the current period
Impact of additional deductible expenses -13,362,620.59
Changes in the balance of deferred income tax assets / liabilities at the
274,063.01
beginning of the year due to tax rate adjustment
Impact of tax exemption policy for sub-subsidiaries in Vietnam -11,889,543.96
Impact of other adjustments 1,043,607.20
Income tax expenses 45,639,842.16
77. Other comprehensive income
See Note 57. Other comprehensive income for details.
78. Items of cash flow statement
(1) Other cash received related to operating activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Interest income 4,397,537.66 4,449,371.38
Governmental subsidies 8,671,130.63 15,368,969.80
Deposit and margin collection 1,058,934.03 7,503,298.55
Exercise-related individual income tax
11,047,469.30 13,111,463.49
collected on an agency basis
Personal borrowings and expenditures 779,256.00 702,406.46
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Litigation execution amount 827,707.00 23,524,991.79
Others 4,264,267.78 4,304,266.23
Total 31,046,302.40 68,964,767.70
(2) Other cash paid related to operating activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Service charge 1,542,403.90 1,156,868.91
Management expenses 25,252,906.57 20,476,012.62
Research and development expenses 33,505,485.16 22,399,573.80
Sales expenses 34,691,387.17 31,343,566.87
Margin and deposit expenses 3,479,392.66 4,502,592.47
Employee borrowings 3,763,609.50 2,685,937.37
Others 10,776,663.69 10,511,234.23
Total 113,011,848.65 93,075,786.27
(3) Other cash received related to investment activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Total 0.00
(4) Other cash paid related to investment activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Total 0.00 0.00
(5) Other cash received related to financing activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Note margin 18,039,024.44 52,360,005.58
Total 18,039,024.44 52,360,005.58
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(6) Other cash paid related to financing activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Note margin 1,561,294.47 66,636,003.24
Auction transaction repurchase 20,008,353.16
Lease liability payment amount 6,693,452.50
Intermediary fees for non-public offering 805,312.81
Total 9,060,059.78 86,644,356.40
79. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Unit: Yuan
Supplementary information Current amount Amount of the previous period
1.Adjusting net profit to cash flow from operating activities: -- --
Net profit 436,087,293.11 221,010,979.23
Plus: Impairment of assets 114,456,207.37 18,355,617.01
Depreciation of fixed assets, depletion of oil and gas assets as well as
49,924,287.12 37,258,997.23
depreciation of productive biological assets
Depreciation of use right assets 6,241,851.65
Amortization of intangible assets 31,069,633.99 23,327,469.99
Amortization of long-term deferred expenses 11,996,203.14 5,755,160.88
Losses from disposal of fixed assets, intangible assets and other long-term
-317,178.75 -893,602.45
assets (income marked with “-”)
Losses on scrapping of fixed assets (income marked with “-”) 259,335.13 854,624.88
Loss from fair value change (income marked with “-”) -98,312,768.52 -3,711,170.46
Financial expenses (income marked with “-”) 33,018,572.00 15,324,983.08
Return on investment (loss marked with "-") -23,876,616.37 -77,494,488.36
Decrease in deferred income tax assets (increase marked with “-”) -21,833,194.16 -2,223,294.00
Increase in deferred income tax liabilities (decrease marked with “-”) 14,700,279.13 1,452,205.62
Decrease in inventory (increase marked with “-”) -794,887,074.14 -290,933,568.72
Decrease in operating receivables (increase marked with “-”) -470,369,225.23 74,855,753.95
Increase in operating payables (decrease marked with “-”) 484,777,126.41 89,674,703.41
Others 1,359,530.00 6,521,881.90
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Net cash flow from operating activities -225,705,738.12 119,136,253.19
2.Major investment and financing activities not involving cash receipts and
-- --
payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired under finance leases
3.Net change in cash and cash equivalents: -- --
Ending balance of cash 1,284,383,758.87 848,089,343.67
Less: beginning balance of cash 1,196,835,834.93 761,845,320.50
Plus: Ending balance of cash equivalents
Less: beginning balance of cash equivalents
Net increase in cash and cash equivalents 87,547,923.94 86,244,023.17
(2) Net cash paid for acquirement of subsidiaries in the current period
Unit: Yuan
Amount
Cash or cash equivalents paid in the current period for business
12,320,000.00
combination occurring in the current period
Including: --
Taixing Ninghui Lithium Battery Co., Ltd. 12,320,000.00
Less: cash and cash equivalents held by the subsidiary on the date of
1,037,613.21
purchase
Including: --
Plus: cash or cash equivalents paid in the current period for business
0.00
combinations occurring in previous periods
Including: --
Net cash paid for acquirement of subsidiaries 11,282,386.79
(3) Net cash received for disposal of subsidiaries in the current period
□ applicable √ not applicable
(4) Composition of cash and cash equivalents
Unit: Yuan
Items Ending balance Beginning balance
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I. Cash 1,284,383,758.87 1,196,835,834.93
Including: cash in stock 712,197.18 604,492.12
Bank deposit available for payment at any time 1,225,199,499.85 1,196,226,680.89
Other monetary capital available for payment at any time 12,473,561.84
III. Balance of cash and cash equivalents at the end of the period 1,284,383,758.87 1,196,835,834.93
80. Notes to items in change statement of owner’s equity
□ applicable √ not applicable
81. Assets with limited ownership or use right
Unit: Yuan
Items Book value at the end of the period Restricted reasons
Monetary Security deposits for application to banks for issuance of bank acceptance bills,
5,480,466.03
capital bank deposits frozen in litigation, etc.
Fixed assets 333,098,600.00 Mortgage housing loan
Total 338,579,066.03 --
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: Yuan
Foreign currency balance at Balance converted into RMB at
Items Conversion rate
the end of the period the end of the period
Monetary capital -- -- 201,743,053.36
Including: USD 21,866,009.41 6.4601 141,256,607.38
Euro 1,186,523.96 7.6862 9,119,860.47
Hong Kong Dollar 588,674.67 0.8321 489,824.43
Vietnamese dong 14,750,222,213.24 0.0003 4,138,903.70
Indian rupee 532,591,735.72 0.0870 46,308,851.42
Japanese Yen 7,342,472.00 0.0584 429,005.95
Accounts receivable -- -- 878,573,153.68
Including: USD 127,772,824.24 6.4601 825,425,221.87
Euro 523,231.34 7.6862 4,021,660.73
Hong Kong Dollar 8,227,219.75 0.8321 6,845,869.55
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Vietnamese dong 46,501,637,017.00 0.0003 13,950,491.11
Indian rupee 325,631,154.31 0.0870 28,329,910.42
Receivables financing 149,144,209.02
Including: USD 23,086,981.47 6.4601 149,144,209.02
Accounts payable 31,156,300.43
Including: Hong Kong Dollar 35,810.06 0.8321 29,797.55
USD 4,237,716.64 6.4601 27,376,073.27
Vietnamese dong 10,534,699,013.00 0.0003 3,160,409.70
Indian rupee 6,781,838.00 0.0870 590,019.91
Long-term loans -- --
Including: USD
Euro
Hong Kong Dollar
Vietnamese dong
Indian rupee
(2) Description of overseas business entities, including for important overseas business entities, disclosure of
main overseas business locations, recording currency and selection basis as well as disclosure of reasons for
changes in recording currency.
√ applicable □ not applicable
1. Topband India Private Limited, a subsidiary of the Company, is mainly located in Pune City, Maharashtra, India,
with Indian Rupee as the recording currency;
2. Topband (Vietnam) Co., Ltd, a sub-subsidiary of the Company, is mainly located in Binh Duong, Vietnam, with
Vietnamese dong as the recording currency;
3. TOPBAND SMART DONGNAI (VIETNAM) Co., ltd, a sub-subsidiary of the Company, is mainly located in
Dong Nai, Vietnam, with Vietnamese dong as the recording currency;
4. Topband Germany GmbH, a sub-subsidiary of the Company, is mainly located in Unterfhring, Germany, with
Euro as the recording currency;
5. TOPBAND JAPAN Co., Ltd., a sub-subsidiary of the Company, is mainly located in Nagoya, Japan, with
Japanese Yen as the recording currency;
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83. Hedging
□ applicable √ not applicable
84. Government subsidies
(1) Basic information of government subsidies
Unit: Yuan
Amount included in
Category Amount Items presented
current profit and loss
Software tax rebate 4,443,028.35 Other income 4,443,028.35
Return of individual income tax service charge 1,083,707.40 Other income 1,083,707.40
R & D expense subsidy 1,465,000.00 Other income 1,465,000.00
Subsidy from the foreign trade quality growth support program of the
1,453,557.00 Other income 1,453,557.00
bureau of commerce
Technical transformation project of the intelligent controller and lithium
832,155.00 Other income 832,155.00
battery automation production line
Industrial and commercial electricity subsidy 459,804.80 Other income 459,804.80
Provincial economic promotion subsidy in 2021 300,000.00 Other income 300,000.00
Training replaced for operation subsidy 288,500.00 Other income 288,500.00
Technological transformation supported by 2020 anti-epidemic national
208,015.00 Deferred income 208,015.00
debt funds
Patent application subsidy 157,650.00 Other income 157,650.00
R&D project of unmanned Robot Cleaner 150,000.00 Deferred income 150,000.00
Research and development equipment funding of smart home
management system based on Internet of Things cloud computing 131,500.00 Deferred income 131,500.00
technology
Nano lithium iron phosphate power battery project 125,000.00 Deferred income 125,000.00
Financial support fund of Xinqiao Town of Songjiang District of
110,000.00 Other income 110,000.00
Shanghai
High rate 18650-2.8Ah power battery key technology research and
102,000.00 Deferred income 102,000.00
development project
Subsidy for the talent quality improvement project 100,000.00 Other income 100,000.00
Industrialization of high efficiency energy saving motor for permanent
97,500.00 Deferred income 97,500.00
magnet with rare earth
Policy measure bonus 70,000.00 Other income 70,000.00
Exhibition subsidy 68,400.00 Other income 68,400.00
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Employment filing subsidy 65,000.00 Other income 65,000.00
Business development subsidy 60,258.00 Other income 60,258.00
Research and development of 60A solar charging controller with peak
60,000.00 Deferred income 60,000.00
power tracking technology
Urban land use tax exemption and subsidy due to the epidemic 43,592.50 Other income 43,592.50
Intelligent grid connected project of distributed photovoltaic power
30,000.00 Other income 30,000.00
station
Clean energy projects subsidy 25,000.00 Other income 25,000.00
Position stabilization subsidy 24,413.33 Other income 24,413.33
Industrial enterprise bonus 20,000.00 Other income 20,000.00
Ningbo demonstration project subsidy 20,000.00 Other income 20,000.00
Subsidy for newly recruited Hubei employees of small, medium-sized
7,000.00 Other income 7,000.00
and micro enterprises
Subsidy for software copyright registration 5,100.00 Other income 5,100.00
(2) Situation of government subsidies refund
□ applicable √ not applicable
85. Others
□ applicable √ not applicable
VIII. Changes in the scope of consolidation
1. Merger of enterprises under different control
(1) Merger of enterprise under different control occurred in the current period
Unit: Yuan
Revenue of the Net profit of
Date of Ratio of Basis for acquiree from the acquiree from the
Name of Cost of equity Equity acquired Date of
equity equity determination of date of purchasing acquisition date to
acquiree acquired via purchasing
acquired acquired acquisition date to the end of the the end of the
period period
Merger of Investment
Taixing Ninghui
February 5, enterprises February 5, agreement and
Lithium Battery 33,400,000.00 83.50% 19,237,620.78 -717,938.81
2021 under different 2021 industrial and
Co., Ltd.
control commercial
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change
registration
(2) Merging cost and goodwill
Unit: Yuan
Merging cost
--Cash 33,400,000.00
Total merging cost 33,400,000.00
Less: share of fair value of the net identifiable assets acquired 19,898,202.54
The amount of which the goodwill/merging cost is less than the share of
1,755,000.88
fair value of the net identifiable assets acquired
The determination method of the fair value of the merger cost, the contingent consideration and the description of
its changes:
Note: Of the merger cost, 15.4 million yuan was used to purchase part of the equity of the original shareholders;
of the merger cost, 18 million yuan was used to increase the capital of the investee.
(3) Identifiable assets and liabilities of the acquiree
Unit: Yuan
Fair value on the acquisition date Book value on the acquisition date
Monetary capital 1,037,613.21 1,037,613.21
Accounts receivable 127,205.42 127,205.42
Inventory 10,795,207.69 10,795,207.69
Fixed assets 21,244,666.39 21,244,666.39
Accounts payable 5,204,644.68 5,204,644.68
Net assets 19,898,202.54 19,898,202.54
Less: minority shareholders' equity 0.00
Net assets acquired 19,898,202.54 19,898,202.54
(4) Gains or losses arising from remeasurement of equity held before the acquisition date at fair value
Was there a transaction that realized business combination step by step through multiple transactions and obtained
control during the reporting period
□ Yes √ No
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(5) Relevant explanations for the inability to reasonably determine the merger consideration or the fair
value of the identifiable assets and liabilities of the acquiree on the acquisition date or at the end of the
current period
□ applicable √ not applicable
(6) Other description
□ applicable √ not applicable
2. Merger of enterprises under the same control
□ applicable √ not applicable
3. Reverse purchase
□ applicable √ not applicable
4. Disposal of subsidiaries
Is there single disposal of the investment in a subsidiary which results in loss of control
□ Yes √ No
Are there are step-by-step disposal of the investment in a subsidiary through multiple transactions and loss of
control in the current period
□ Yes √ No
5. Changes in the scope of merger due to other reasons
□ applicable √ not applicable
6. Others
□ applicable √ not applicable
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IX. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of enterprise group
Principal place Registered Shareholding proportion Acquisition
Name of subsidiary Nature of business
of business place Direct Indirect method
Shenzhen Topband Software Technology
Shenzhen Shenzhen Production and sales 100.00% Establishment
Co., Ltd.
Shenzhen Topband Lithium Battery Co.,
Shenzhen Shenzhen Production and sales 100.00% Establishment
Ltd.
Shenzhen Topband Automation
Shenzhen Shenzhen Production and sales 100.00% Establishment
Technology Co., Ltd.
Chongqing Topband Industrial Co., Ltd. Chongqing Chongqing Production and sales 100.00% Establishment
Topband (Hong Kong) Co., Ltd. Hong Kong Hong Kong Investment 100.00% Establishment
Huizhou Topband Electrical Technology
Huizhou Huizhou Production and sales 100.00% Establishment
Co., Ltd.
Huizhou Topband Lithium Battery Co.,
Huizhou Huizhou Production and sales 100.00% Establishment
Ltd.
Topband (Qingdao) Intelligent Control
Ningbo Ningbo Production and sales 100.00% Establishment
Co., Ltd.
Merger of
enterprises
Shenzhen Allied Control System Co., Ltd. Shenzhen Shenzhen Production and sales 100.00%
under different
control
Merger of
Shenzhen Meanstone Intelligent enterprises
Shenzhen Shenzhen Production and sales 77.25%
Technology Co., Ltd. under different
control
Binh Duong, Binh Duong,
Topband （Vietnam) Co.,ltd Production and sales 100.00% Establishment
Vietnam Vietnam
Topband India Private Limited India India Sales 100.00% Establishment
Dong Nai Dong Nai
TOPBAND SMART
Province, Province, Production and sales 100.00% Establishment
DONGNAI(VIETNAM) Co.,ltd
Vietnam Vietnam
Merger of
Shenzhen YAKO Automation Technology enterprises
Shenzhen Shenzhen Production and sales 73.00%
Co., Ltd. under different
control
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Merger of
Hangzhou Zhidong Motor Technology enterprises
Hangzhou Hangzhou Production and sales 52.50%
Co., Ltd. under different
control
Merger of
enterprises
Shenzhen Yansheng Software Co., Ltd. Shenzhen Shenzhen Software development 73.00%
under different
control
Unterfohring, Unterfohring
Topband Germany GmbH Sales 100.00% Establishment
Germany City, Germany
Sales, import and
Shenzhen Topband Supply Chain Services export business and
Shenzhen Shenzhen 100.00% Establishment
Co., Ltd. supply chain
management services
Research and
Shenzhen Spark IOT Technology Co.,
Shenzhen Shenzhen development as well 100.00% Establishment
Ltd.
as sales
Shenzhen Topband Investment Co., Ltd. Shenzhen Shenzhen Investment 100.00% Establishment
Sales, import and
export business and
Shenzhen Tulu Innovation Co., Ltd. Shenzhen Shenzhen 100.00% Establishment
supply chain
management services
Sales, import and
export business and
Shenzhen Senxuan Technology Co., Ltd. Shenzhen Shenzhen 100.00% Establishment
supply chain
management services
Sales, import and
Nagoya City, Nagoya City, export business and
TOPBAND JAPAN Co., Ltd. 100.00% Establishment
Japan Japan supply chain
management services
Topband (Qingdao) Intelligent Control
Qingdao Qingdao Production and sales 100.00% Establishment
Co., Ltd.
Merger of
enterprises
Shenzhen Tengyi Industrial Co., Ltd. Shenzhen Shenzhen Sales 100.00%
under different
control
Consulting and
Shenzhen Zhongli Consulting Co., Ltd. Shenzhen Shenzhen 100.00% Establishment
training
Merger of
Taixing Ninghui Lithium Battery Co.,
Taixing Taixing Production and sales 83.50% enterprises
Ltd.
under different
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control
Tulu Innovation (Hong Kong) Limited Hong Kong Hong Kong Sales 100.00% Establishment
(2) Important non-wholly-owned subsidiaries
Unit: Yuan
Shareholding Profits and losses Dividends declared and
ratio of attributable to minority distributed to minority Ending balance of
Name of subsidiary
minority shareholders during the shareholders during the minority equity
shareholders current period current period
Shenzhen YAKO Automation
27.00% 8,203,014.78 5,197,835.08 88,285,489.37
Technology Co., Ltd.
(3) Major financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance Beginning balance
Name of Non-curre Non-curre
Non-current Current Total Current Non-current Current Total
subsidiary Current assets Total assets nt Total assets nt
assets liab ilit ies liab ilit ies assets assets liab ilit ies liab ilit ies
liab ilit ies liab ilit ies
Shenzhen YAKO 320,471,958.72 65,581,462.71 386,053,421.43 62,999,334.09 12,027,541.21 75,026,875.30 303,827,572.37 47,014,094.08 350,841,666.45 50,893,109.13 - 50,893,109.13
Automation
Technology Co.,
Ltd.
Unit: Yuan
Amount incurred in current period Amount incurred in prior period
Cash flow
Name of Total Total Cash flow from
Operating from Operating
subsidiary Net profit comprehensi Net profit comprehensi operating
income operating income
ve income ve income activities
activities
Shenzhen YAKO
Automation
166,417,599.85 30,329,229.86 30,329,229.86 -3,857,802.79 130,041,552.68 27,227,181.75 27,227,181.75 -24,396,996.43
Technology Co.,
Ltd.
(4) Significant restrictions on the use of enterprise group assets and the liquidation of enterprise group
debts
□ applicable √ not applicable
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(5) Financial support or other support provided to structured entities included in the scope of the
consolidated financial statements
□ applicable √ not applicable
2. Transaction in respect of which the share of the owner's equity of a subsidiary is changed and the
subsidiary is still under control
□ applicable √ not applicable
3. Interests in joint venture arrangements or associated enterprises
(□Applicable √ not applicable
4. Important joint operation
□ applicable √ not applicable
5. Interests in structured entities not included in the scope of the consolidated financial statements
□ applicable √ not applicable
6. Others
□ applicable √ not applicable
X. Risks Associated with Financial Instruments
The main financial instruments of the Company include equity investment, borrowings, accounts receivable,
accounts payable, etc. For the detailed description of each financial instrument, refer to relevant items in this 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. The Management of the Company manages and monitors
these risk exposures to ensure that these risks are controlled within the limited scope.
The Company uses sensitivity analysis technology to analyze the possible impact of reasonable and possible
changes in risk variables 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
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variable are made in isolation.
(I) Risk management objective and policy
The Company's risk management objective is to strike an appropriate balance between risks and returns, reduce
the negative impact of risks on the Company's business performance to the lowest level, and maximize the
interests of shareholders and other equity investors. Based on this risk management objective, the basic risk
management strategy of the Company is to determine and analyze various risks faced by it, establish an
appropriate risk bearing bottom line and carry out risk management, and conduct timely and reliable supervision
of various risks to control risks within the limited scope.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations. The Company's foreign
exchange risks are mainly related to US dollars and Hong Kong dollars. In addition, the Company and its
subsidiary Topband (Hong Kong) Co., Ltd. purchase some materials and sell products in US dollars and Hong
Kong dollars. Topband India Private Limited, a subsidiary of the Company, is denominated in Indian Rupee;
Topband (Vietnam) Co., Ltd. and Topband Smart Dongnai (Vietnam) Co., Ltd., sub-subsidiaries of the Company,
are denominated in Vietnamese Dong; Topband Germany GmbH, a sub-subsidiary of the Company, is
denominated in Euro; Topband Japan Co., Ltd., a sub-subsidiary of the Company, is denominated in Japanese Yen.
Other major business activities of the Company are denominated and settled in RMB.As of June 30, 2021, the
Company's assets and liabilities were balances in RMB except that the assets or liabilities described in the table
below were balances in USD, HKD, INR, VDN and YEN. 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.
Items Amount at the end of the year Amount at the beginning of the year
Cash and cash equivalents 201,743,053.36 147,083,094.22
Hong Kong Dollar 489,824.43 588,457.79
USD 141,256,607.38 130,907,063.75
Euro 9,119,860.47 4,622,874.52
Vietnamese dong 4,138,903.70 10,964,698.16
Indian rupee 46,308,851.42 52,805,773.23
Japanese Yen 429,005.95 1,685,384.53
Accounts receivable 878,573,153.68 720,991,666.44
Hong Kong Dollar 6,845,869.55 16,137,574.75
USD 825,425,221.87 684,814,883.97
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Euro 4,021,660.73 7,427,921.54
Vietnamese dong 13,950,491.11 3,739,078.18
Indian rupee 28,329,910.42 8,872,208.00
Receivables financing 149,144,209.02
USD 149,144,209.02 0.00
Accounts payable 31,156,300.43 14,905,145.96
Hong Kong Dollar 29,797.55 30,139.18
USD 27,376,073.27 12,599,740.06
Vietnamese dong 3,160,409.70 1,899,388.63
Indian rupee 590,019.91 375,878.09
The Company pays close attention to the impact of exchange rate fluctuations on the Company's foreign exchange
risks. At present, the Company has taken measures such as purchasing forward foreign exchange sales contracts to
avoid foreign exchange risks.
Foreign exchange risk sensitivity analysis:
Assumption of foreign exchange risk sensitivity analysis: All net investment hedging and cash flow hedging of
overseas operations are highly effective. On the basis of the above assumption, if other variables remain
unchanged, the pretax impact of possible reasonable changes in the exchange rate on the current profits and losses
and shareholders' equity is as follows:
Exchange rate
Items Current year Last year
changes
Impact on Impact on
Impact on
Impact on profits shareholders' shareholders'
profits
equity equity
Cash and cash Appreciate 1%
2,017,430.53 2,017,430.53 2,015,742.52 2,015,742.52
equivalents against RMB
Cash and cash Depreciate 1%
-2,017,430.53 -2,017,430.53 -2,015,742.52 -2,015,742.52
equivalents against RMB
Accounts Appreciate 1%
8,785,731.54 8,785,731.54 7,209,908.99 7,209,908.99
receivable against RMB
Accounts Depreciate 1%
-8,785,731.54 -8,785,731.54 -7,209,908.99 -7,209,908.99
receivable against RMB
Receivables Appreciate 1%
1,491,442.09 1,491,442.09
financing against RMB
Receivables Depreciate 1%
-1,491,442.09 -1,491,442.09
financing against RMB
Appreciate 1%
Accounts payable -311,563.00 -311,563.00 -149,051.45 -149,051.45
against RMB
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Depreciate 1%
Accounts payable 311,563.00 311,563.00 149,051.45 149,051.45
against RMB
(2) Other price risks
Investments held by the Company and classified as trading 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, 2021, the maximum credit risk exposure that might cause financial loss of the Company mainly
came from the loss of the Company's financial assets caused by the failure of the other party to the contract to
perform obligations and the financial guarantee undertaken by the Company, specifically including the carrying
amount of the financial assets recognized in the consolidated balance sheet.
In order to reduce credit risks, the Company has set up special positions responsible for determining credit limits,
conducting credit approval, and implementing other monitoring procedures to ensure that necessary measures are
taken to recover overdue claims. In addition, the Company reviews the recovery of each individual receivables 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.
(1) Aging analysis of overdue unimpaired financial assets
Items 2021-6-30
Within 1 year 1~2 years 2~3 years 3~5 years Over 5 years Total
Accounts 158,618,993.20 40,075,933.50 2,654,776.63 1,164,560.49 645,166.80 271,261,281.76
receivable
Items 2020-12-31
Within 1 year 1~2 years 2~3 years 3~5 years Over 5 years Total
Accounts
66,900,889.84 20,639,335.42 5,908,366.30 632,811.52 639,506.80 94,720,909.88
receivable
(2) 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
In managing liquidity risks, the Company maintains and monitors cash and cash equivalents deemed sufficient by
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the Management 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.
The Company relies on bank loans as its main source of funds. On June 30, 2021, the Company's unused bank
loan limit was 5,969,850,500 yuan.
The maturity term analysis of the financial assets held by the Company and the maturity term analysis of the
financial liabilities based on undiscounted remaining contractual obligations are as follows:
Items Within 1 year 1~2 years 2~3 years 3~5 years Over 5 years Total
Non-derivative financial assets and liabilities:
Monetary capital 1,289,864,224.89 1,289,864,224.89
Notes receivable 68,545,551.44 68,545,551.44
Accounts receivable 2,118,572,750.32 2,118,572,750.32
Receivables
289,248,841.88 289,248,841.88
financing
Other receivables 19,526,612.06 19,526,612.06
Short-term loans 135,890,741.95 135,890,741.95
Notes payable 1,009,181,787.24 1,009,181,787.24
Accounts payable 1,882,551,558.88 1,882,551,558.88
Other payables 69,253,389.96 69,253,389.96
Non-current
liabilities due within 38,891,387.34 38,891,387.34
one year
Long-term loans 21,740,000.00 34,784,000.00 78,260,000.00 56,520,000.00 169,564,000.00
XI. Disclosure of Fair Value
1. Ending fair value of assets and liabilities measured at fair value
Unit: Yuan
Ending fair value
Items The first level of fair The second level of fair The third level of fair
Total
value measurement value measurement value measurement
I. Continuous fair value
-- -- -- --
measurement
1. Financial assets measured at fair
value and whose changes are
13,560,930.89 316,860,979.98 330,421,910.87
included in the current profits and
losses
(1) Debt instrument investment 116,500,000.00 116,500,000.00
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(2) Equity instrument investment 13,560,930.89 200,360,979.98 213,921,910.87
(VIII) Financial assets measured at
fair value and whose changes are
289,584,260.14 289,584,260.14
included in other comprehensive
income
Receivables financing 289,584,260.14 289,584,260.14
Including: bank acceptance bills 140,440,051.12 140,440,051.12
Accounts receivable 149,144,209.02 149,144,209.02
Total liabilities continuously
13,560,930.89 606,445,240.12 620,006,171.01
measured at fair value
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
The market value of financial assets measured at fair value with the changes included in the current profits and
losses are determined mainly on the basis of the closing price at the end of the accounting period of the stock
exchange.
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3. Continuous and non-continuous second-level fair value measurement items, valuation techniques
adopted and qualitative and quantitative information of important parameters
4. Continuous and non-continuous third-level fair value measurement items, valuation techniques adopted
and qualitative and quantitative information of important parameters
5. Continuous third-level fair value measurement items, adjustment information between beginning and
ending book value and sensitivity analysis of unobservable parameters
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
7. Technical changes in valuation during the current period and the reasons for such changes
8. Fair value of financial assets and financial liabilities not measured at fair value
9. Others
XII. Related Parties and Related Transactions
1. Information on the parent company of the Enterprise
The parent Proportion of the
Name of parent company's parent company's
Registered place Nature of business Registered capital
company shareholding ratio in voting rights in the
the Enterprise Enterprise
Natural person
Wu Yongqiang Shenzhen 17.12% 17.12%
shareholder
2. Information on the Company's subsidiaries
The information on the subsidiaries of the Enterprise is detailed in "1. Interests in Subsidiaries" in "Interests in
Other Entities" in Note 9.
3. Information on the joint ventures and associated enterprises of the Enterprise
□ applicable √ not applicable
4. Other related parties
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Names of other related parties Relationship between other related parties and the Enterprise
A company substantially controlled by the relative of the
Shenzhen Jizhiguang Electronics Co., Ltd.
Company's legal representative
Shenzhen Lianghui Technology Co., Ltd. A company whose shares are held by the Company
Shenzhen ORVIBO Technology Co., Ltd. A company whose shares are held by the Company
Shenzhen HANSC Intelligent Technology Co., Ltd. A company whose shares are held by the Company
Guangdong Zhongchuang Zhijia Scientific Research Co., Ltd. A company whose shares are held by the Company
Guangdong Huixin Semiconductor Co., Ltd. A company whose shares are held by the Company
Fujian Mini Dolphin New Energy Technology Co., Ltd. A company whose shares are held by the Company
Shenzhen Youbi Technology Co., Ltd. A company whose shares are held by the Company
Pas Electronic Technology (Nanjing) Co., Ltd. A company whose shares are held by the Company
Shanghai Yidong Power Technology Co., Ltd. A company whose shares are held by the Company
5. Related transactions
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance of
services
List of goods purchased/services received
Unit: Yuan
Related Is the
Amount incurred Approved Amount incurred in
Related party transaction transaction
in current period transaction limit prior period
content limit exceeded
Shenzhen Jizhiguang Electronics
Raw materials 10,416,476.86 40,000,000.00 No 5,285,786.51
Co., Ltd.
Shenzhen ORVIBO Technology
Raw materials 14,150.94
Co., Ltd.
List of goods sold/services provided
Unit: Yuan
Related party Related transaction content Amount incurred in current period Amount incurred in prior period
Shenzhen ORVIBO Technology
LED products 29,087,963.75 2,212,389.67
Co., Ltd.
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
□ applicable √ not applicable
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(3) Related lease
□ applicable √ not applicable
(4) Related guarantee
□ applicable √ not applicable
(5) Related parties' loans at call
□ applicable √ not applicable
(6) Asset transfer and debt restructuring of related parties
□ applicable √ not applicable
(7) Remuneration of key management personnel
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Remuneration of key management personnel 3,310,400.00 3,169,600.00
(8) Other related transactions
□ applicable √ not applicable
6. Payables due to related parties
(1) Item receivable
Unit: Yuan
Ending balance Beginning balance
Project
Related party Provision for bad Provision for bad
name Book balance Book balance
debts debts
Accounts Shenzhen ORVIBO Technology
7,477,003.34 231,787.10 11,456,976.61 355,166.27
receivable Co., Ltd.
(2) Item payable
Unit: Yuan
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Book balance at the end of the Book balance at the beginning
Project name Related party
period of the period
Accounts payable Shenzhen Jizhiguang Electronics Co., Ltd. 2,312,108.90 3,600,589.88
Notes payable Shenzhen Jizhiguang Electronics Co., Ltd. 4,118,472.70 1,560,000.00
7. Commitment of related parties
□ applicable √ not applicable
8. Others
□ applicable √ not applicable
XIII. Share-based payme nt
1. General situation of share-based payment
√ applicable □ not applicable
Unit: Yuan
Total amount of equity
instruments granted by
0.00
the Company during the
current period
Total amount of equity
instruments exercised
10,950,600.00
by the Company during
the current period
Total amount of the
Company's equity
instruments that expired 283,300.00
during the current
period
The Company granted 42.8870 million stock options to 684 incentive recipients on November 27, 2018. The
The range of the
performance evaluation and exercise of the Company and the individuals of the incentive objects are conducted by
exercise price of the
the year, and the evaluation is conducted once each fiscal year. The achievement of the performance evaluation target
Company's stock
is taken as the exercise condition of the incentive objects. This plan is valid for a maximum period of 48 months from
options outstanding at
the date of authorization of stock options to the date on which all options are exercised or cancelled. After the
the end of the period
expiration of 12 months from the authorization date of the incentive plan of the current period, the incentive objects
and the remaining term
shall exercise the stock options by stages according to the exercise proportion of 30%, 30% and 40% within the
of the contract
vesting date. The grant price of the stock options that have not been unlocked at the end of the period is RMB 3.60.
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Other description:
1. Stock options in 2018
On November 27, 2018, the ninth meeting of the sixth Board of Directors of the Company deliberated and passed
the Proposal on Granting Stock Options to Incentive Objects, granting 42,887,000 stock options to 684 eligible
incentive objects at a grant price of RMB 3.80 per share.
On July 26, 2019, the 15th meeting of the sixth Board of Directors of the Company deliberated and passed the
Proposal on Adjusting the Stock Option Exercise Price of the 2018 Stock Option Incentive Plan, which adjusted
the exercise price of the 2018 Stock Option Incentive Plan from RMB 3.80 to RMB 3.70 due to the Company's
2018 annual equity distribution.
On March 30, 2020, the Company held the 22nd Meeting of the 6th Board of Directors, deliberating and
approving the Proposal on the First Exercise Period of 2018 Stock Option Incentive Plan Meeting the Exercise
Conditions and Exercisable Rights and the Proposal on Adjustment of the Incentive Objects and the Number of
Stock Options of 2018 Stock Option Incentive Plan: In the first exercise period of the 2018 stock option incentive
plan of the Company, a total of 606 incentive objects with 12,014,700 stock options in total were eligible for
exercise. In May 2020, a total of 606 incentive objects with 12,014,700 stock options in total in the first exercise
period completed exercise.
On January 16, 2020, given that 76 original incentive objects of the Company, including Huang Xinyu and Yang
Shengcang, left office due to personal reasons, according to relevant provisions of the 2018 Stock Option
Incentive Plan (Revised Draft), the above personnel did not meet the incentive conditions, and a total of 2,773,000
stock options that were granted to the 76 original incentive objects but were not exercised may not be exercised.
The Company completed the cancellation of such stock options on January 29, 2021.
On March 9, 2021, the 6th Meeting of the 7th Board of Directors of the Company deliberated and approved the
Proposal on the Second Exercise Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions
and Exercisable Rights and Proposal on Adjustment of the Incentive Objects and the Number of Stock Options of
2018 Stock Option Incentive Plan: there are 567 incentive objects in the second exercise period of the 2018 stock
option incentive plan in the Company, in total of 10,950,600 shares of stock options, that meet the exercise
conditions and can be exercised. The Company plans to adopt the independent exercise mode. As the incentive
objects Cheng Xuejing and Lin Qiao resigned and left the Company for personal reasons, 80,500 stock options
granted but not exercised shall not be exercised and shall be uniformly canceled by the Company. The procedures
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such as the review of the adjustment of the number of such options will be performed later. By March 2021, a
total of 10.9326 million stock options had been exercised by 565 incentive objects in the second exercise period.
2. Equity-settled share-based payments
√ applicable □ not applicable
Unit: Yuan
Method for determining the fair value of the equity instrument on the
Black-Scholes option pricing model
grant date
It is expected that the exercise condition can be met and the
Basis for determining the number of exercisable equity instruments
granted objects will exercise
Accumulated amount of equity-settled share-based payments
82,321,190.45
included in capital reserves
Total amount of expenses recognized by equity-settled share-based
2,950,550.74
payments in the current period
3. Cash-settled share-based payments
□ applicable √ not applicable
4. Modification and termination of share-based payments
□ applicable √ not applicable
XIV. Commitments and contingencies
1. Important commitments
□ applicable √ not applicable
2. Contingencies
□ applicable √ not applicable
XV. Events after the balance sheet date
□ applicable √ not applicable
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XVI. Other important matters
□ applicable √ not applicable
XVII. Notes on Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: Yuan
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Accounts
receivable with
provision for bad 217,161,121.16 16.60% 2,309,518.00 1.01% 214,851,603.16 70,467,909.49 0.08% 597,758.70 1.00% 69,870,150.79
debts by single
item
Including:
Accounts
receivable with a
single significant 216,563,660.79 16.55% 1,712,057.63 0.79% 214,851,603.16 69,868,984.66 7.56% 0.00% 69,868,984.66
amount and single
bad debt provision
Accounts
receivable with
insignificant
single amount but 597,460.37 0.05% 597,460.37 100.00% 0.00 598,924.83 0.06% 597,758.70 99.81% 1,166.13
single provision
made for bad
debts
Accounts
receivable with
1,091,171,870.83 83.40% 35,289,147.03 3.23% 1,055,882,723.80 854,095,677.91 92.38% 27,700,353.00 3.24% 826,395,324.91
provision for bad
debts by portfolio
Including:
Accounts
receivable with
provision for bad 1,091,171,870.83 83.40% 35,289,147.03 3.23% 1,055,882,723.80 854,095,677.91 92.38% 27,700,353.00 3.24% 826,395,324.91
debts by aging
combination
Total 1,308,332,991.99 100.00% 37,598,665.03 2.87% 1,270,734,326.96 924,563,587.40 100.00% 28,298,111.70 3.06% 896,265,475.70
Single provision for bad debts: 2,309,518.00
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision Reasons for provision
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Customer 1 155,217,059.18 0.00 0.00% Intragroup related transactions
Customer 2 22,369,082.99 0.00 0.00% Intragroup related transactions
Customer 3 10,905,846.75 0.00 0.00% Intragroup related transactions
Customer 4 12,734,253.24 0.00 0.00% Intragroup related transactions
Customer 5 6,336,826.69 0.00 0.00% Intragroup related transactions
Customer 6 5,982,449.72 0.00 0.00% Intragroup related transactions
Customer 7 1,306,084.59 0.00 0.00% Intragroup related transactions
Customer 8 1,712,057.63 1,712,057.63 100.00% It is not expected to be recovered
Customer 9 300,000.00 300,000.00 100.00% It is not expected to be recovered
Customer 10 297,460.37 297,460.37 100.00% It is not expected to be recovered
Total 217,161,121.16 2,309,518.00 -- --
Provision for bad debts by portfolio:
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Provision for bad debts by aging
1,091,171,870.83 35,289,147.03 3.23%
portfolio
Total 1,091,171,870.83 35,289,147.03 --
Provision for bad debts by portfolio:
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Description of the basis for determining the portfolio:
If the provision for bad debts on accounts receivable is based on the general model of expected credit loss, the
information about the provision for bad debts shall be disclosed by referring to the disclosure method of other
receivables:
□ applicable √ not applicable
Disclosure by aging
Unit: Yuan
Aging Ending balance
Less than 1 year (including 1 year) 1,290,662,573.49
1 to 2 years 15,202,351.20
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2 to 3 years 2,111,296.50
More than 3 years 356,770.80
3 to 4 years 356,770.80
4 to 5 years 0.00
Over 5 years 0.00
Total 1,308,332,991.99
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
Amount changed in current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for bad
28,298,111.70 9,380,553.33 80,000.00 37,598,665.03
debts
Total 28,298,111.70 9,380,553.33 80,000.00 37,598,665.03
(3) Accounts receivable actually written off in current period
Unit: Yuan
Items Write-off amount
Shanghai Haoze Noorey Environmental Protection Technology Co., Ltd. 80,000.00
Of which the significant write-offs of accounts receivable:
Unit: Yuan
Nature of Whether the amount
Write-off Reasons for write Write-off procedures
Name of Entity accounts was generated by
amount off performed
receivable related transactions
Shanghai Haoze Noorey
It is not expected to
Environmental Protection 80,000.00
be recovered
Technology Co., Ltd.
Total -- 80,000.00 -- -- --
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: Yuan
Ending balance of accounts Proportion to total ending Ending balance of provision for
Name of Entity
receivable balances of accounts receivable bad debts
216
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No.1 401,550,889.96 30.69% 12,448,077.59
No.2 155,217,059.18 11.86%
No.3 41,484,004.93 3.17% 1,286,004.15
No.4 40,273,861.57 3.08% 1,248,489.71
No.5 27,014,388.53 2.06% 837,446.04
Total 665,540,204.17 50.86%
(5) Accounts receivable derecognized due to transfer of financial assets
□ applicable √ not applicable
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be
involved
□ applicable √ not applicable
2. Other receivables
Unit: Yuan
Items Ending balance Beginning balance
Other receivables 35,903,482.71 41,159,647.12
Total 35,903,482.71 41,159,647.12
(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: Yuan
Nature of payment Book balance at the end of the period Book balance at the beginning of the period
Intragroup related transaction funds 28,300,055.06 13,021,127.03
VAT refund 20,264,087.02
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Employee loans 4,752,275.19 4,589,352.52
Margin, deposit 4,273,003.64 4,493,457.54
Others 157,008.91 62,346.03
Total 37,482,342.80 42,430,370.14
2) Provision for bad debts
Unit: Yuan
Phase 1 Phase 2 Phase 3
Expected credit Expected credit loss for the Expected credit loss for the
Provision for bad debts Total
loss in the next entire duration (no credit entire duration (credit
12 months impairment) impairment occurred)
Balance as of January 1, 2021 1,270,723.01 1,270,723.01
Balance as of January 1, 2021
—— —— —— ——
in the current period
Accrued in current period 308,137.08 308,137.08
Balance on June 30, 2021 1,578,860.09 1,578,860.09
Changes in book balance with significant changes in loss reserves in current period
□ applicable √ not applicable
Disclosure by aging
Unit: Yuan
Aging Ending balance
Less than 1 year (including 1 year) 32,783,328.33
1 to 2 years 1,575,684.20
2 to 3 years 1,923,094.34
More than 3 years 1,200,235.93
3 to 4 years 1,158,123.61
4 to 5 years 5,000.00
Over 5 years 37,112.32
Total 37,482,342.80
3) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
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Amount changed in current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Others
reversal
Provision for bad
1,270,723.01 308,137.08 1,578,860.09
debts
Total 1,270,723.01 308,137.08 1,578,860.09
4) Other receivables actually written off in current period
□ applicable √ not applicable
5) Other receivables of top five ending balances grouped by debtors
Unit: Yuan
Ending
Proportion to total
balance of
Name of Entity Nature of payment Ending balance Aging ending balances of
provision for
other receivables
bad debts
No.1 Intragroup related transaction funds 19,278,092.80 Within 1 year 51.43%
No.2 Intragroup related transaction funds 4,672,771.52 Within 1 year 12.47%
No.3 Intragroup related transaction funds 1,835,195.55 Within 1 year 4.90%
No.4 Margin, deposit 1,520,178.00 2~3 years 4.06% 456,053.40
No.5 Intragroup related transaction funds 1,229,228.83 Within 1 year 3.28%
Total -- 28,535,466.70 -- 76.14% 456,053.40
6) Receivables involving government subsidies
□ applicable √ not applicable
7) Other receivables derecognized due to transfer of financial assets
□ applicable √ not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
□ applicable √ not applicable
219
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3. Long-term equity investment
Unit: Yuan
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
2,424,006,676.11 2,424,006,676.11 2,194,431,703.81 2,194,431,703.81
subsidiaries
Investment in associated
enterprises and joint 18,440,374.38 12,433,655.05 6,006,719.33 18,936,183.18 12,433,655.05 6,502,528.13
ventures
Total 2,442,447,050.49 12,433,655.05 2,430,013,395.44 2,213,367,886.99 12,433,655.05 2,200,934,231.94
(1) Investment in subsidiaries
Unit: Yuan
Changes in increase/decrease in current period Ending balance of
Beginning balance Ending balance
Investee Additional Decrease in Provision for provision for
(book value) Others (book value)
investment investment impairment impairment
Huizhou Topband
Electrical Technology 633,267,784.97 45,740,270.78 679,008,055.75
Co., Ltd.
Shenzhen YAKO
Automation 350,014,659.96 350,014,659.96
Technology Co., Ltd.
Chongqing Topband
210,135,072.74 20,688.88 210,155,761.62
Industrial Co., Ltd.
Shenzhen Allied
Control System Co., 120,984,983.52 189,746.66 121,174,730.18
Ltd.
Topband (Qingdao)
Intelligent Control 350,044,696.18 59,690,246.60 409,734,942.78
Co., Ltd.
TOPBAND INDIA
195,026,748.97 195,026,748.97
PRIVATE LIMITED
Shenzhen Topband
Software Technology 17,044,333.03 301,112.00 17,345,445.03
Co., Ltd.
Shenzhen Topband
24,416,539.46 6,008,866.67 30,425,406.13
Automation
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Technology Co., Ltd.
Topband (Hong Kong)
249,076,900.00 64,525,000.00 313,601,900.00
Co., Ltd.
Shenzhen Topband
Lithium Battery Co., 4,417,413.65 95,494.05 4,512,907.70
Ltd.
Shenzhen Meanstone
Intelligent Technology 3,000,000.00 7,000,000.00 10,000,000.00
Co., Ltd.
Shenzhen Topband
Supply Chain Services 5,000,000.00 5,000,000.00
Co., Ltd.
Shenzhen Topband
30,002,571.33 10,003,546.66 40,006,117.99
Investment Co., Ltd.
Shenzhen Senxuan
2,000,000.00 6,000,000.00 8,000,000.00
Technology Co., Ltd.
Topband (Qingdao)
Intelligent Control 30,000,000.00 30,000,000.00
Co., Ltd.
Total 2,194,431,703.81 229,574,972.30 2,424,006,676.11
(2) Investment in associated enterprises and joint ventures
Unit: Yuan
Changes in increase/decrease in current period
Declaration
Profit and loss Ending
Beginning Adjustment to Other of Ending
Decrease on investment Provision balance of
Investment unit balance Additional other changes distribution balance
in recognized for Others provision for
(book value) investment comprehensive in for cash (book value)
investment under equity impairment impairment
income equity dividends
method
or profits
I. Joint venture
II. Associates enterprises
Shenzhen
Yuchengxin
Power 12,433,655.05
Technology Co.,
Ltd.
Shenzhen Daka
6,502,528.13 -495,808.80 6,006,719.33
Optoelectronics
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Co., Ltd.
Subtotal 6,502,528.13 -495,808.80 6,006,719.33 12,433,655.05
Total 6,502,528.13 -495,808.80 6,006,719.33 12,433,655.05
(3) Other description
4. Operating income and operating cost
Unit: Yuan
Amount incurred in current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 2,108,115,155.95 1,747,449,569.91 1,231,665,083.62 1,020,764,208.76
Other business 53,820,075.36 47,592,448.41 31,983,577.48 26,507,690.89
Total 2,161,935,231.31 1,795,042,018.32 1,263,648,661.10 1,047,271,899.65
Information related to performance obligations:
For the sales of goods to customers, the Company recognizes the income when the control of the goods is
transferred, that is, when the goods are transported to the designated place of the other party, or delivered to the
carrier designated by the other party, or when they are delivered to the other party and their acceptance is
completed. As the delivery of the goods to the customer represents the right to receive the contract consideration
unconditionally, and the maturity of the payment only depends on the passage of time, the Company recognizes an
amount receivable when the goods are delivered to the customer. When the customer pays the purchase price in
advance, the Company recognizes the transaction amount received as a contract liability until the goods are
delivered to the customer. The amount of income corresponding to the performance obligations that have signed
contracts but have not been performed or completed at the end of the reporting period is RMB 1.264 billion, and
the income of the above amount is expected to be recognized within one year.
5. Return on investment
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Long-term equity investment revenue
-495,808.80 -144,574.55
accounted by equity method
Investment revenue from disposal of trading
24,066,351.32 74,522,738.91
financial assets
222
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Income from bank financial products 535,266.66
Dividend income from subsidiaries 14,053,405.97 4,963,933.51
Total 37,623,948.49 79,877,364.53
XVIII. Supple mentary Information
1. Schedule of current non-recurring profits and losses
√ applicable □ not applicable
Unit: Yuan
Items Amount Description
Profits and losses on disposal of non-current assets -465,795.21
Government subsidies recognized in the current profits and losses (except those closely
related to the business of the enterprise and enjoyed in a fixed or quantitative amount 6,479,445.63
according to the national uniform standard)
Profit and loss from changes in fair value of trading financial assets, derivative financial
assets, trading financial liabilities and derivative financial liabilities, and investment income
from disposal of trading financial assets, derivative financial assets, trading financial 122,379,119.84
liabilities, derivative financial liabilities and other creditor's rights investments, except for
effective hedging business related to the normal business of the Company
Other non-operating income and expenses other than those mentioned above -1,672,760.04-
Financing
Other profit and loss items that meet the definition of non-recurring profit and loss 1,200,855.83
income
Less: amount affected by income tax 19,200,380.11
Impact amount of minority shareholders' equity 249,302.35
Total 108,471,183.59 --
For the items of non-recurring profit and loss defined by the Company in accordance with the definition of
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to Public -
Non-Recurring Profits and Losses, the reasons why the items of non-recurring profit and loss listed as
non-recurring in Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities
to Public - Non-Recurring Profits and Losses to be defined as recurring profit and loss should be explained.
□ applicable √ not applicable
2. Return on equity and earnings per share
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Weighted Earnings per share
Profit in the reporting period average return Basic earnings per share Diluted earnings per
on net assets (yuan / share) share (yuan / share)
Net income attributable to the common shareholders of the
11.13% 0.38 0.37
Company
Net profit attributable to the common shareholders of the
8.31% 0.28 0.28
Company after deduction of non-recurring profits and losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Difference between the net profit and net assets in the financial reports disclosed in accordance with
both international accounting standards and 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 foreign accounting standards. If the data
audited by an overseas audit institution is adjusted for differences, the name of the overseas audit
institution shall be indicated
4. Others
□ applicable √ not applicable
224
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Section XI Other Data Submitted
1. Other major social security proble ms
Do the listed company and its subsidiaries have other major social security problems
□ NA □ Yes □ No
Existing problems and rectification
Was it subject to administrative punishment during the reporting period
□ NA □ Yes □ No
Punishment items, punishment measures and rectification
II. Registration form of reception, investigation, communication, interview and other
activities during the reporting period
√ applicable □ not applicable
Main
Locati Metho Index of basic
Type of contents of
Time of on of d of information
receptio Reception object interview and
reception recepti recepti of
n object materials
on on investigation
provided
Confe Learn about
rence Fuguo Fund Management Co., Ltd., Zhonggeng Fund the operation
2021/1/19 Spot
room Organiz Management Co., Ltd., Shenzhen Yitong Investment Co., of the http://www.cn
2021/1/20 investi
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Comp Fortune Investment Management Co., Ltd. information
any provided.
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HTF Fund Management Co., Ltd., Xingquan Fund
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of the ations planning of info.com.cn
2021/1/29 one Investment Management Co., Ltd., Dajia Asset Management
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survey Co., Ltd., Bank of Communications Co., Ltd., New China
any no
Asset Management Co., Ltd., Guosheng Securities Co., Ltd.
information
and Tianfeng Securities Co., Ltd.
provided.
Confe Teleph Tianfeng Securities Co., Ltd., Great Wall Securities Co., Ltd., Learn about
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rence one Zhongtai Securities Co., Ltd., Guotai Junan Securities Co., the operation
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room survey ations Ltd., China Merchants Fund Management Co., Ltd., Guohai and financial info.com.cn
of the Securities Asset Management Branch, Harvest Fund situation of
Comp Management Co., Ltd., HSBC Jinxin Fund Management Co., the Company;
any Ltd., China Post & Capital Fund Management Co., Ltd., no
Sinowise Investment Management Co., Ltd., Zhongrong information
Fund Management Co., Ltd., China CICC Wealth provided.
Management Securities Co., Ltd., GTS Fund Management
Co., Ltd., Yinhua Fund Management Co., Ltd., Xingquan
Fund Management Co., Ltd., Southwest Securities
Investment Department, Tianzhi Fund Management Co., Ltd.,
Tianhong Fund Management Co., Ltd., Tianfeng
International Securities Co., Ltd., Taixin Fund Management
Co., Ltd., Shenzhen Qianhai Prudence Investment Asset
Management Co., Ltd., Shenzhen Qianhai Guhe Asset
Management Co., Ltd., Shenzhen Qianhai Dengcheng Asset
Management Co., Ltd., Shenzhen Hongding Wealth
Management Co., Ltd., Shenzhen Gangli Investment
Consulting Co., Ltd., Shenzhen Fengling Capital
Management Co., Ltd., Shanghai Zhunjin Investment
Management Co., Ltd., Shanghai Yuyi Asset Management
Co., Ltd., Shanghai Life Insurance Co., Ltd., Shanghai
Panjing Investment Management Center, Shanghai Mingyu
Asset Management Co., Ltd., Shanghai Chengrui Investment
Management Co., Ltd., Shandao Investment Management
Co., Ltd., Sansheng Group Co., Ltd., Rongtong Fund
Management Co., Ltd., Fund Management Co., Ltd., Nuode
Fund Management Co., Ltd., Minsheng Royal Fund
Management Co., Ltd., Junhe Capital Management Co., Ltd.,
Jiutai Fund Management Co., Ltd., BOCOM Schroders Fund
Management Co., Ltd., Jiangsu Hengdao Capital
Management Co., Ltd., Hunan Yuancheng Investment
Management Co., Ltd., Hotland Innovation Asset
Management Co., Ltd., Heyong Investment Management Co.,
Ltd., Hangzhou Lequ Investment Management Co., Ltd.,
Guoxin Investment Co., Ltd., SDIC UBS, Guotai Asset
Management Co., Ltd., China Life AMP Asset Management
Co., Ltd., Guangdong Tengrun Investment Co., Ltd., Founder
Fubon Fund Management Co., Ltd., Dunhe Asset
Management Co., Ltd., Dongzheng Ronghui Asset
Management Co., Ltd., Soochow Asset Management Co.,
Ltd., Springs Capital Investment Management Co., Ltd.,
Dacheng Fund Management Co., Ltd., Caitong Fund
Management Co., Ltd., Bohai Huijin Securities Asset
Management Co., Ltd., Beixin Ruifeng Fund Management
226
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Co., Ltd., Beijing Yuanlesheng Asset Management Co., Ltd.,
Beijing Jiashu Asset Management Co., Ltd., Beijing Fengpei
Investment Management Co., Ltd., Anxin Fund Management
Co., Ltd., Vontobel Asset Management Asia Pacific Limited,
Point Poplar Management Co., Ltd., Shenzhen Qianhai Junjie
Asset Management Co., Ltd. and Tongtai Fund Management
Co., Ltd.
China Securities Co., Ltd., Zhongtai Securities Co., Ltd.,
Anxin Fund Management Co., Ltd., Beijing Zeming
Investment Co., Ltd., Fuyun investment, TruValue Asset
Management Co., Ltd., Chunhou Fund Management Co.,
Ltd., Topsperity Securities Co., Ltd., Soochow Securities Co.,
Ltd., Everbright Securities Co., Ltd., Guangdong Yuancheng
Private Equity Securities Investment Fund Co., Ltd., Guokai
Securities, China Life AMP Asset Management Co., Ltd.,
Guoxin Investment, HFT Fund Management Co., Ltd. ,
Sequoia Capital, Sinosafe Property Insurance Asset
Management Co., Ltd., Harvest Fund Management Co., Ltd.,
BOCOM Schroeder Fund Management Co., Ltd., Mingyu
Assets, ABC-CA Fund Management Co., Ltd., Lion Fund Learn about
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Confe Annuity Insurance Company of China, Ltd., Ping An Asset financial
rence Management Co., Ltd., Qianhai Life Insurance Co., Ltd., situation and
Teleph
room Organiz Rose Capital, Shanghai Tongyuan Investment Co., Ltd., strategic http://www.cn
2021/3/9 one
of the ations Shanghai Xinlan Investment Management Co., Ltd., China planning of info.com.cn
survey
Comp International Fund Management Co., Ltd., Shenwan the Company;
any Hongyuan Securities Co., Ltd., Shenzhen Wangzheng Asset no
Management Co., Ltd., Taiping Fund Management Co., Ltd., information
Taixin Fund Management Co., Ltd., Tianhong Fund provided.
Management Co., Ltd., Western Leadbank Fund Management
Co., Ltd., Western Securities Co., Ltd., Xingzheng Global
Fund Management Co., Ltd., Sunshine Tianhong Fund,
Yonghe Capital, Investment Department of Yuntong
Automobile Group, Great Wall Wealth Asset Management
Co., Ltd., Changjiang Endowment Insurance Co., Ltd.,
Changsheng Fund Management Co., Ltd., China Merchants
Fund Management Co., Ltd., Zhejiang Chujiu Investment
Management Co., Ltd., Zhonghai Fund Management Co.,
Ltd., Zhong Ou Asset Management Co., Ltd., CITIC
Prudential Fund Management Co., Ltd., Bank of China
Investment Management Co., Ltd. and China CITIC Bank.
Confe Spot Proxim Hong Kong Co., Ltd., Haocheng Asset Management Learn about
2021/3/10 Organiz http://www.cn
rence investi Co., Ltd., Wanlian Securities Co., Ltd., Guosen Securities the operation,
2021/3/11 ations info.com.cn
room gation Co., Ltd., Huatai Securities Co., Ltd., ZTF Securities Co., financial
227
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of the Ltd., Wenyuan Capital Management Co., Ltd. and Caitong situation and
Comp Fund Management Co., Ltd. strategic
any planning of
the Company;
no
information
provided.
Learn about
Mondrian Asset Management Co., Ltd., New Thinking (Hong the operation,
Confe Kong) Investment Management Co., Ltd., Zongcai financial
Teleph
2021/3/15 rence Investment Management Co., Ltd., Shanghai Jiuge situation and
one
2021/3/16 room Organiz Investment Management Co., Ltd., Shanghai Panjing strategic http://www.cn
and
2021/3/17 of the ations Investment Management Center, Chunhou Fund Management planning of info.com.cn
field
2021/3/18 Comp Co., Ltd., Anxin Securities Co., Ltd., Huachuang Securities the Company;
survey
any Co., Ltd., Ruiyuan Fund Management Co., Ltd. and no
Industrial Securities Co., Ltd. information
provided.
Tianfeng Securities Co., Ltd., SDIC UBS Fund Management
Co., Ltd., First State Cinda Fund Management Co., Ltd.,
Penghua Fund Management Co., Ltd., Zhengyi Asset
Management Co., Ltd., Zhonggeng Fund Management Co.,
Ltd., Yinhua Fund Management Co., Ltd., Fuguo Fund
Management Co., Ltd., Shanghai Xitai Investment Learn about
Management Co., Ltd., Kaifeng Investment Management the operation,
Confe Co., Ltd., Shenzhen Fengling Capital Management Co., Ltd., financial
rence Wangzheng Investment Management Co., Ltd., Guangdong situation and
Teleph
room Organiz Huayin Tianxia Fund Management Co., Ltd., Shanghai strategic http://www.cn
2021/4/15 one
of the ations Shengyu Equity Investment Fund Management Co., Ltd., planning of info.com.cn
survey
Comp Everbright PGIM Fund Management Co., Ltd., Guangzhou the Company;
any Yourong Equity Investment Management Co., Ltd., Honghua no
Capital Management (Shenzhen) Co., Ltd., Furong Fund information
Management Co., Ltd., Huabao Fund Management Co., Ltd., provided.
Beijing Dingsa Investment Co., Ltd., Yihe Jiufu Investment
Management Co., Ltd., ICBC Credit Suisse Fund
Management Co., Ltd., Tianhong Fund Management Co.,
Ltd. and Jinxiu Zhonghe (Beijing) Capital Management Co.,
Ltd.
Confe Tianfeng Securities Co., Ltd., Great Wall Securities Co., Ltd., Learn about
rence Tianfeng Securities Asset Management Branch, Xingquan the operation,
Teleph
2021/4/26 room Organiz Fund Management Co., Ltd., Junhe Capital, Harvest Fund financial http://www.cn
one
2021/4/27 of the ations Management Co., Ltd., Fuguo Fund Management Co., Ltd., situation and info.com.cn
survey
Comp China Life Asset Management Co., Ltd., China Merchants strategic
any Fund Management Co., Ltd., Huatai Securities Asset planning of
228
Full text of Semiannual Report 2021 of Shenzhen Topband Co., Ltd.
Management Department, Ruiyuan Fund Management Co., the Company;
Ltd., Shanghai Fosun High Technology (Group) Co., Ltd., no
Sinosafe Property Insurance Asset Management Co., Ltd., information
Taikang Asset Management Co., Ltd., Southern Asset provided.
Management Co., Ltd., Bank of China Investment
Management Co., Ltd., Founder Fubon Fund Management
Co., Ltd., Taiping Asset Management Co., Ltd., Hangzhou
Guangtian Investment Management Co., Ltd., Shenzhen
Fengling Capital Management Co., Ltd., GTS Fund
Management Co., Ltd., Jiuyan Asset Management Co., Ltd.,
Shenzhen Qianhai Evolutionism Asset Management Co.,
Ltd., Beijing Xinhan Capital Management Co., Ltd.,
Hongshang Capital Equity Investment Co., Ltd., Shenzhen
Hongding Wealth Management Co., Ltd., Shanghai Tuling
Asset Management Co., Ltd., China Merchants Securities
Asset Management Co., Ltd., Vontobel Asset Management
Asia Pacific Limited, Pebble Capital Management Co., Ltd.,
Qianhe Capital Management Co., Ltd., Zhejiang Yingrui
Investment Management Co., Ltd., Huatai Insurance Group
Co., Ltd., Hangzhou Lequ Investment Management Co., Ltd.,
Prudential Fund Management Co., Ltd., Hengyue Fund
Management Co., Ltd., Shanghai Pertrust Capital
Management Co., Ltd., HFT Fund Management Co., Ltd,
Yihe Jiufu Investment Management Co., Ltd., Shenzhen
Xishan Capital Management Co., Ltd., Shenzhen Yitong
Investment Management Co., Ltd., Hangzhou Micang Capital
Management Co., Ltd., Hong Kong Innovation Fund
Management Co., Ltd., Beijing Keywise Capital
Management Co., Ltd., Guotai Asset Management Co., Ltd.,
Topsperity Securities Asset Management Co., Ltd., Hubei
Zhongjing Capital Investment Development Co., Ltd.,
Shenzhen Qianhai Guhe Asset Management Co., Ltd.,
Point72, Shanghai Zhunjin Investment Management Co.,
Ltd., Bank of China Investment Management Co., Ltd.,
Minsheng Royal Fund Management Co., Ltd., Ningbo
Liansheng Investment Co., Ltd., Huashang Fund
Management Co., Ltd., Qingdao Yinsheng Asset
Management Co., Ltd., Wea lth Management Subsidiary of
Agricultural Bank of China, Orient Jiafu (Ningbo) Asset
Management Co., Ltd., Orient Securities Co., Ltd., Shanghai
Self-Operated Branch of Guojin Securities, Shenzhen
Qianhai Prudence Investment Asset Management Co., Ltd.,
Shenzhen Headquarters of Huaneng Guicheng Trust Co.,
Ltd., Rosefinch Fund Management Co., Ltd., Asset
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Management Branch of Guohai Securities, Galaxy Securities
Co., Ltd., Beijing Chengsheng Investment Management Co.,
Ltd., Shenzhen Qianhai Evolutionism Asset Management
Co., Ltd., Shanghai Gaoyi Asset Management Co., Ltd.,
Taiping Asset Management Co., Ltd., Boyan Capital
Management Co., Ltd., GTS Fund Management Co., Ltd.,
Beijing Xinhan Capital Management Co., Ltd., Fengrui Asset
Management Co., Ltd., Beijing Fengpei Investment
Management Co., Ltd., SDIC UBS Fund Management Co.,
Ltd., Manulife, Shenzhen Pengcheng Jishi Investment
Management Co., Ltd., Shanghai Zhuoshang Asset
Management Co., Ltd., Honghua Capital Management
(Shenzhen) Co., Ltd., Beijing Zuoyou Investment Co., Ltd.,
Shenzhen Qianhai Dengcheng Asset Management Co., Ltd.,
PICC Asset Management Co., Ltd., CICC Asset Management
Department, Hotland Innovation Asset Management Co.,
Ltd., TruValue Asset Management Co., Ltd., Jingtai Lifeng
Asset Management Co., Ltd., ABC-CA Fund Management
Co., Ltd., Beijing Carrie's Wealth Investment Management
Co., Ltd., Qianhai First Seafront Fund Management Co., Ltd.,
Guoxin Investment Co., Ltd., Teda Dingsheng Asset
Management Co., Ltd., Pengyang Fund Management Co.,
Ltd., Zhonghai Fund Management Co., Ltd., Shanghai
Loujiang Investment Management Center, Minsheng Royal
Fund Management Co., Ltd., Beijing CUFE Long Ma Capital
Investment Co., Ltd., Fuanda Fund Management Co., Ltd.,
BlackRock Asset Management North Asia Limited, Xingyin
Fund Management Co., Ltd., Anxin Fund Management Co.,
Ltd., Teda Manulife Fund Management Co., Ltd., Guotai
Yuanxin Asset Management Co., Ltd., Sinosafe Fund
Management Co., Ltd., Orient Fund Management Co., Ltd.,
Panjing Investment Management Co., Ltd. and Tianzhi Fund
Management Co., Ltd.
BlackRock Fund Management Co., Ltd., Kaiji Securities Co.,
Learn about
Ltd., Harvest Fund Management Co., Ltd., Rongtong Fund
the operation,
Management Co., Ltd., Tianhong Fund Management Co.,
Confe financial
Field Ltd., EFund management Co., Ltd., GTS Fund Management
2021/5/11 rence situation and
and Co., Ltd., Zhong Ou Fund Management Co., Ltd., Dajia
2021/5/12 room Organiz strategic http://www.cn
teleph Asset Management Co., Ltd., Fuguo Fund Management Co.,
2021/5/13 of the ations planning of info.com.cn
one Ltd., Shanghai Fusheng Asset Management Partnership,
Comp the Company;
survey China Securities Co., Ltd., Guokai Securities Co., Ltd.,
any no
Guangdong Hongchang Private Equity Securities Investment
information
Management Co., Ltd., Hongta Hongtu Fund Management
provided.
Co., Ltd., Huabao Fund Management Co., Ltd., Huaxia
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Full text of Semiannual Report 2021 of Shenzhen Topband Co., Ltd.
Wealth Management Co., Ltd., CCB Principal Asset
Management Co., Ltd., Penghua Fund Management Co.,
Ltd., Ping An Asset Management Co., Ltd., Qianhai Kaiyuan
Fund Management Co., Ltd., Rixing Asset Management Co.,
Ltd., Zhuque Fund Management Co., Ltd., New China Asset
Management Co., Ltd., First Beijing Investment Co., Ltd.,
Hezhong Asset Management Co., Ltd. and Highclere.
BlackRock Fund Management Co., Ltd., HTF Fund Learn about
Management Co., Ltd., Guosheng Securities Co., Ltd., HFT the operation,
Confe Fund Management Co., Ltd., First State Cinda Fund financial
Field
2021/5/18 rence Management Co., Ltd., Huatai Baoxing Fund Management situation and
and
2021/5/19 room Organiz Co., Ltd., Shenzhen Jindou Investment Co., Ltd., Zhonghai strategic http://www.cn
teleph
2021/5/20 of the ations Fund Management Co., Ltd., Shenzhen Qianhai Evolutionism planning of info.com.cn
one
2021/5/21 Comp Asset Management Co., Ltd., Anhui Zhongjue Investment the Company;
survey
any Management Co., Ltd., Guotai Junan Securities Co., Ltd., no
Harvest Fund Management Co., Ltd. and Point72 Hong Kong information
Limited. provided.
Confe Teleph Organiz Greenwoods Asset Management, Springs Capital (Beijing)
2021/6/4 rence one ations Investment Management Co., Ltd., Harvest Fund
room survey Management Co., Ltd., Baichuan Wealth (Beijing)
of the Investment Management Co., Ltd., Beijing Fengpei
Comp Investment Management Co., Ltd., BlackRock Institutional
any Trust Co., Ltd., Brilliance Capital Management Co., Ltd.,
Guangxi Junjing Ggarden Engineering Co., Ltd., Guangzhou
Zhaoshi Investment Partnership (Limited Partnership),
Guojin Fund Management Co., Ltd., Huabao Securities Co.,
Ltd., Huaneng Guicheng Trust Co., Ltd., Shenzhen Qianhai
Huaqiang Financial Holding Co., Ltd., Huarong Securities
Co., Ltd., CCB Principal Asset Management Co., Ltd.,
Jiangsu Ruihua Investment Management Co., Ltd., Keywise
Capital Management (Tianjin) Co., Ltd., Keywise Capital
Management (Hong Kong) Co., Ltd., Kunlun Health
Insurance Co., Ltd., Minsheng Royal Fund Management Co.,
Ltd., Shanghai Luyong Asset Management Co., Ltd.,
Shanghai Lubao Investment Management Co., Ltd., Shanghai
Shunzhu Asset Management Co., Ltd., Shanghai Tongyuan
Investment Development Co., Ltd., Shanghai Yinye
Investment Co., Ltd., Shanghai Yuanhao Investment
Management Co., Ltd., Shanghai Zhengxingu Investment
Management Co., Ltd., Shanghai Chongyang Strategic
Investment Co., Ltd., Shanghai Zhuoshang Asset
Management Co., Ltd., Shenzhen Jinguang Asset
Management Co., Ltd., Shenzhen Lianxi Yongshi Asset
Management Co., Ltd., Shenzhen Lingji Capital Management
231
Full text of Semiannual Report 2021 of Shenzhen Topband Co., Ltd.
Co., Ltd., Shenzhen Mingda Asset Management Co., Ltd.,
Shenzhen Mingji Investment Management Co., Ltd.,
Shenzhen Ruisibo Investment Management Co., Ltd., Taiping
Asset Management Co., Ltd., Taixin Fund Management Co.,
Ltd., New China Pension Co., Ltd., New Idea Investment
Co., Ltd., Xinghua Fund Management Co., Ltd., Industrial
Securities Co., Ltd., AIA Life Insurance Co., Ltd., Yuanda
Securities Investment Trust Co., Ltd., CMB International
Finance Co., Ltd., Zheshang Fund Management Co., Ltd.,
PICC Asset Management Co., Ltd., China Life Asset
Management Co., Ltd., CITIC CLSA Securities Co., Ltd.,
BOC International Securities Co., Ltd., Zhuhai Hengqin
Yuexin Asset Management Co., Ltd. and CITIC Securities
Co., Ltd.
2021/6/8 Confe Field Organiz Southern Asset Management Co., Ltd., Huachuang Securities Learn about http://www.cn
2021/6/9 rence and ations Co., Ltd., HFT Fund Management Co., Ltd., Springs Capital the operation, info.com.cn
room teleph (Beijing) Investment Management Co., Ltd., Manulife Asset financial
of the one Management Hong Kong Co., Ltd., Sinosafe Property situation and
Comp survey Insurance Co., Ltd., Fuguo Fund Management Co., Ltd., strategic
any Shenzhen Kaifeng Investment Management Co., Ltd., CITIC planning of
Prudential Life Insurance Co., Ltd., Maxwealth Fund the Company;
Management Co., Ltd., Everbright Securities Co., Ltd., CPIC no
Fund Management Co., Ltd., Manulife Asset Management information
(Thailand) Co,Ltd, Point72 Asset Management, Ruiyuan provided.
Fund Management Co., Ltd., Founder Fubon Fund
Management Co., Ltd., Taiping Fund Management Co., Ltd.,
Qunyi Securities Investment Trust Co., Ltd., Nuode Fund
Management Co., Ltd., Taikang Asset Management Co., Ltd.,
Shanghai Fosun High Technology (Group) Co., Ltd.,
Tianchong Capital Management Co., Ltd. and Fuanda Fund
Management Co., Ltd.
CITIC Asset Management Co., Ltd., Anhui Conch Venture
Capital Co., Ltd., Anhui Mingze Investment Management
Learn about
Co., Ltd., Baoer Taiping Co., Ltd., PKU Founder Life Asset
the operation,
Management Center, Beijing Fengpei Investment
Confe financial
Management Co., Ltd., Beijing Hongcheng Investment
rence situation and
Teleph Management Co., Ltd., Beijing Xingshi Investment
2021/6/24 room Organiz strategic http://www.cn
one Management Co., Ltd., Caitong Securities Asset Management
2021/6/25 of the ations planning of info.com.cn
survey Co., Ltd., Dajia Asset Management Co., Ltd., Topsperity
Comp the Company;
Securities Co., Ltd., Northeast Securities Co., Ltd., Oriental
any no
Alpha Fund Management Co., Ltd., Orient Fund
information
Management Co., Ltd., Orient Securities Co., Ltd., ICBC
provided.
Credit Suisse Fund Management Co., Ltd., Everbright PGIM
Fund Management Co., Ltd., Everbright Securities Asset
232
Full text of Semiannual Report 2021 of Shenzhen Topband Co., Ltd.
Management Co., Ltd., GF Fund Management Co., Ltd.,
Guohai Franklin Fund Management Co., Ltd., CPIC Fund
Management Co., Ltd., China Life AMP Asset Management
Co., Ltd., HFT Fund Management Co., Ltd., Evergrande Life
Insurance Co., Ltd., Sinosafe Fund Management Co., Ltd.,
Huachuang Securities Co., Ltd., Huafu Securities Co., Ltd.,
Huatai (Shanghai) Asset Management Co., Ltd., Harvest
Fund Management Co., Ltd., CCB Principal Asset
Management Co., Ltd., Nuode Fund Management Co., Ltd.,
Penghua Fund Management Co., Ltd., Ping An Fund
Management Co., Ltd., Ping An Asset Management Co., Ltd.,
AXA SPDB Fund Management Co., Ltd., Qianhai Kaiyuan
Fund Management Co., Ltd., Shanghai Aijian Trust Co., Ltd.,
Shanghai Chengzhou Asset Management Co., Ltd., Shanghai
Fengchi Asset Management Co., Ltd., Shanghai Chaos
Investment (Group) Co., Ltd., Shanghai Lanmo Investment
Management Co., Ltd., Shanghai Liuhe Investment Co., Ltd.,
Shanghai Panjing Investment Management Center (Limited
Partnership), Shanghai Panhou Investment Management Co.,
Ltd., Shanghai Puyi Asset Management Co., Ltd., Shanghai
Ruiyi Investment Development Center, Shanghai Tongyu
Investment Management Center (Limited Partnership),
Shanghai Tongyuan Investment Development Co., Ltd.,
Shanghai Xueshi Asset Management Co., Ltd., BOSC Asset
Management Co., Ltd., Shenwan Hongyuan Securities Co.,
Ltd., Shenzhen Orient Harbor Investment Management Co.,
Ltd., Shenzhen Fengling Capital Management Co., Ltd.,
Shenzhen Foresight Asset Management Company (Limited
Partnership), Pacific Asset Management Co., Ltd., Tianzhi
Fund Management Co., Ltd., Western Securities Co., Ltd.,
Southwest Securities Co., Ltd., New China Fund
Management Co., Ltd., Industrial Bank Co., Ltd., Industrial
Securities Co., Ltd., Xingzheng Securities Asset Management
Co., Ltd., EFund Management Co., Ltd., Galaxy Fund
Management Co., Ltd., GTS Fund Management Co., Ltd.,
Changjiang Securities (Shanghai) Asset Management Co.,
Ltd., China Merchants Fund Management Co., Ltd., China
Merchants Securities Asset Management Co., Ltd., PICC
Pension Company Limited, Zhong Ou Fund Management
Co., Ltd., CITIC Prudential Fund Management Co., Ltd.,
CITIC Securities Co., Ltd., BOC International Securities Co.,
Ltd., BOC Fund Management Co., Ltd. and Rosefinch Fund
Management Co., Ltd.
233
Full text of Semiannual Report 2021 of Shenzhen Topband Co., Ltd.
III. Capital transactions between listed companies and controlling shareholders and their
related parties
□ applicable √ not applicable
Shenzhen Topband Co., Ltd.
Aug 20, 2021
234
