Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Shenzhen Topband Co., Ltd.
Annual Report 2021
Topband's investor relations mini-program
March 2022
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Full text of Annual 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 Annual Report is true,
accurate and complete. It shall be free from false records, misleading statements or major omissions,
and shall bear individual and joint legal liabilities therein.
Wu Yongqiang, the principal of the Company, Xiangwei, accounting head, and Luo Muchen,
accounting department head (the person in charge of accounting department) hereby guarantee the
truth, accuracy and completeness of the financial report in this annual report.
All directors have attended the Board meeting at which the Report was scrutinized.
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 this report and investors are advised to pay
attention to investment risks.
The profit distribution plan approved by the Board of Directors was as follows: based on
1,256,978,072 shares, a cash dividend of 0.50 yuan (tax included) for every 10 shares should be
distributed to all shareholders, with 0 bonus shares (tax included) and no capital increase by way of
transfer of reserved funds. If the total share capital of the Company changed due to the share
repurchase, exercise of stock options and other reasons before the implementation of the profit
distribution plan, the total amount of distribution should be adjusted accordingly in the principle
that the distribution ratio per share remains unchanged. Investors are advised to pay attention to the
risk that the total distribution may be adjusted due to changes in total share capital.
This report has been prepared in Chinese and translated into English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Chairman’s Address
Dear shareholders and all friends who care about Topband:
Topband is a technical company always insisting on one thing - providing customers with
intelligent control solutions to benefit everyone based on the core technology of "electronic control,
motor, battery, power supply and Internet of Things platform".
All employees made hard efforts in 2021 in the face of many challenges from the external
environment. Customers and suppliers gave great trust to us. Finally, the Company exceeded the
revenue target set at the beginning of the year and ensured the supply to customers.
Co-creation and sharing of values, and common construction of sustainable ecology . For
a long time, Topband has adhered to the core values of "accomplishing customers and achieving
common development" and the concept of "equality, health, fairness and justice", and has been
working with industrial chain partners to build sustainable development of ecology, achieving
mutual benefit and common growth. In 2021, the supply side faced severe difficulties, i.e. the
shortage of raw materials accompanied by the price increase. We formulated the priority supply
guarantee strategy quickly to ensure the delivery of customer orders by stocking in advance and
stock allocation at high prices, and provided supplier empowerment training. Although we lost
some profits, we won the trust and support of customers and suppliers. We believe that the more we
are in danger, the more we should show our responsibility and truly regard our customers and
suppliers as a community of destiny. We insist on embracing partners with common values actively
to create a healthier ecological environment.
Adhering to the value of technology and the development of the future market growth
under innovation-driven strategy. Topband has always insisted on providing various intelligent
solutions for sectors such as tools, household appliances, new energy and industry based on the core
technology of "electronic control, motor, battery, power supply and Internet of Things platform ". In
the past decade, the R&D investment of the Company accounted for about 7% of its operating
revenues, and technology and product innovation boosted the performance growth of the Company
continuously. In 2021, the innovative product platform of the Company grew rapidly, further
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consolidating its position in the intelligent control industry. The proportion of our independent and
controllable business increased steadily. Many innovative products emerged, such as inverters,
thermostats, cooking machines, lawn mowers and floor washers, contributing a steady stream of
power to the future development of the Company. Topband has truly entered the business model of
long-term development under innovation-driven strategy. There is no ceiling for the future
development of the Company. As long as we firmly grasp the technology and product innovation,
there will be no shortage of market, which is especially worthy of our pride.
Constant evolution of the organization and simulation of vitality to improve
organizational capacity. Topband is a self-circulating and self-growing organism, which can adapt
to the changes of the external environment quickly and grow continuously. In 2021, we reorganized
the process and organization, reduced the decision-making level and determined the mission and
vision of each organization, making everyone clear about their respective responsibilities and
perform their own duties. We adhered to the employment philosophy of "respecting human nature,
identifying needs, giving opportunities, giving full play to value, and achieving common
development", and promoted more than 40 BU (Business Unit) general managers from successful
practice, allowing more outstanding talents with great ambition, sense of mission and internal drive,
market insight and determination, battle control ability and courage to take up management
positions. At the same time, we strengthened the construction of cadre and key professional teams,
integrated excellent resources and formed a reasonable talent structure to promote the value
realization of employees and achieve common development of the Company and individuals.
Organizational dividends have been gradually manifested with the improvement of organizational
capacity, which will become the greatest wealth of the Company.
Looking forward to 2022, Topband is also welcoming new development opportunities with the
development of society towards the trend of "intelligence, low carbonization, regionalization and
short chain". The Company formulated a blueprint for the next ten years and strategies for each
business unit for the next three years in 2021. To achieve our long-term goals, we will seize the
historical opportunities of intelligence, scenarios and green and low carbon systems to innovate the
business model actively, focus on independent innovation and provide customers with intelligent
solutions through insight into the pain spots of users, scenarios and industries while building
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demand insight, resource integration and core platform capabilities. In 2022, we will seize business
opportunities and further optimize internal management.
Seizing opportunities to lead industry growth. For mature business, we should go to the
front end to gain insight into market opportunities, deeply understand customer needs, seize new
opportunities constantly and strive for more orders to ensure the scale advantage of the Company.
For growing business, we should improve our ability continuously and give full play to our existing
advantages to incubate and market innovative products constantly and achieve commercial success.
At the same time, we should continue to expand new tracks and open up new growth points, and
finally achieve long-term strategic goals.
Optimization of internal management and improvement of operational efficiency. With
the gradual diversification of the Company's business, in order to adapt to the ever-changing
business structure and promote the faster development of business, we will deepen the business
model of independent operation, clear responsibilities and effective supervision of different
business under the control of the Group and the support of the platform, continue to consolidate the
results of process reengineering, focus on customer satisfaction and the improvement of operational
efficiency, insist on shifting the business focus forward, change the operation mode of
middleground and background functions actively, and meanwhile promote the improvement of
digitalization, intelligent manufacturing and integrated supply chain continuously to make different
businesses grow healthily on the platform of the Company.
Facing the future, the fearless Topband staff will continue to uphold the customer-centered
concept and create value for society under the guidance of entrepreneurship. Let's go forward hand
in hand, contribute our strength to the intelligent and low-carbon society, and create an intelligent
and bright future together.
Chairman of Shenzhen Topband Co., Ltd.
March 22, 2022
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Contents
Section I Important Notes, Contents and Definitions ..................................................................... 2
Section II Company Profile and Main Financial Indicators .......................................................... 9
Section III Discussion and Analysis of the Management .............................................................. 15
Section IV Corporate Governance ................................................................................................. 78
Section V Environmental and Social Responsibility ................................................................... 116
Section VI Important Matters ...................................................................................................... 117
Section VII Share Change and Shareholders .............................................................................. 135
Section VIII Information on Preferred Shares ............................................................................ 148
Section IX Relevant Information of Bonds .................................................................................. 149
Section X Financial Report ........................................................................................................... 150
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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 original audit report bearing the seal of the accounting firm and the signatures and seals of
the certified public accountants.
III. The originals of all the company documents publicly disclosed in newspapers designated by the
CSRC during the reporting period and the original manuscripts of announcements.
IV. The original of the Annual Report 2021 bearing the signature of the chairman.
V. 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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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Interpretation
Term Mean Definitions
Company, the Company, Topband shares Mean Shenzhen Topband Co., Ltd.
Yuan, 10,000 yuan Mean Yuan, 10,000 yuan
CSRC Mean China Securities Regulatory Commission
Exchange Mean Shenzhen Stock Exchange
Reporting period Mean From January 1, 2021 to December 31, 2021
Articles of Association Mean Articles of Association of Shenzhen Topband Co., Ltd.
Huizhou Topband Mean Huizhou Topband Electrical Technology Co., Ltd.
YAKO Automation Mean Shenzhen YAKO Automation Technology Co., Ltd.
HCD Mean Shenzhen Allied Control System Co., Ltd.
Topband Software Mean Shenzhen Topband Software Technology Co., Ltd.
ORVIBO Mean Shenzhen ORVIBO Technology Co., Ltd.
Chongqing Yiyuan Mean Chongqing Topband Industrial Co., Ltd.
Topband Ningbo Mean Ningbo Topband Intelligent Control Co., Ltd.
Meanstone Intelligent Mean Shenzhen Meanstone Intelligent Technology Co., Ltd.
HANSC Intelligent Mean Shenzhen HANSC Intelligent Technology Co., Ltd.
Hong Kong Topband Mean Topband (Hong Kong) Co., Ltd.
Topband Smart Europe Mean Topband Smart Europe Company Limited
Topband Mexico Mean Topband Mexico Company Limited
Topband Lithium Battery Mean Shenzhen Topband Battery Co., Ltd.
IOT Mean Internet of Things
ICT Mean Information Communications Technology
T-SMART Mean Topband One-Stop Smart Home Solution
AI Mean Artificial Intelligence
BLDC Motor Mean Brushless DC Motor
BG and BU Mean Business Group and Business Unit
IPD Mean Integrated Product Development
ISC Mean Integrated Supply Chain
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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 Shenzhen Topband Co., Ltd.
Chinese abbreviation of the
Topband
Company name
Name of the Company in foreign
Shenzhen Topband Co., Ltd.
language (if any)
Legal representative of the
Wu Yongqiang
Company
Room 413, Block B, Research Institute of Tsinghua University, High-Tech Industrial Park,
Registered address
Yuehai Street, Nanshan District, Shenzhen
Postal code of registered address 518057
Historical changes of registered
None
address of the Company
Office address Topband Industrial Park, Keji Second Road, Shiyan Subdistrict, Baoan District, Shenzhen
Postal code of office address 518108
Company website http://www.topband.com.cn
Email wenzh@topband.com.cn
II. Contact person and contact information
Secretary of the Board of Directors
Name Wen Zhaohui
Address Topband Industrial Park, Keji Second Road, Shiyan Subdistrict, Baoan District, Shenzhen
Tel 0755-26957035
Fax 0755-26957440
Email wenzh@topband.com.cn
III. Information disclosure and storage place
Website of the stock exchange for disclosure of the
http://www.cninfo.com.cn
Company's annual report
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Name and website of the media for disclosure of the
Securities Times and CNINFO (http://www.cninfo.com.cn)
Company's annual report
Location where the Company’s annual report is available Office of the Board of Directors of the Company
IV. Changes in registration
Organization code 91440300192413773Q
Changes in the main business of the Company
No change
since its listing (if any)
Previous changes in controlling shareholders (if
No change
any)
V. Other relevant information
Accounting firm engaged by the Company
Name of accounting firm BAKER TILLY International Accounting Firm (Special General Partnership)
Areas A-1 and A-5, Building 68, No. 19 Chegongzhuang West Road, Haidian District, Beijing
Office address of accounting firm
City
Name of undersigned accountant Chen Zhigang, Zhao Yang
Sponsor engaged by the Company to perform continuous supervision duties during the reporting period
√ applicable □ not applicable
Name of Sponsor’s Continuous
Name of Sponsor Office address of Sponsor
representative supervision period
Room 2203, North Tower, Shanghai Securities Building, Xu Chao and Zhu
China Securities Co., Ltd. 2021/6/3-2022/12/31
No. 528 Pudong South Road, Shanghai Mingqiang
Financial consultant engaged by the Company to perform continuous supervision duties during the reporting
period
□ applicable √ not applicable
VI. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
√ Yes □ No
Reasons for retroactive adjustment and restatement
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Correction of accounting errors
Unit: Yuan
Increase or
decrease in the
2020 2019
current year over
2021
the previous year
Before
After adjustment After adjustment Before adjustment After adjustment
adjustment
Operating income
7,767,034,835.03 5,560,182,998.21 5,560,182,998.21 39.69% 4,098,855,380.70 4,098,855,380.70
(yuan)
Net profit attributable
to shareholders of
564,964,282.18 533,516,814.04 532,161,123.64 6.16% 330,827,437.00 326,982,110.07
listed companies
(yuan)
Net profit attributable
to shareholders of
listed company after
432,038,218.88 382,743,934.45 381,388,244.05 13.28% 198,463,874.89 194,618,547.96
deducting
non-recurring profit
and loss (yuan)
Net cash flow from
operating activities -224,562,545.86 647,900,708.38 647,900,708.38 -134.66% 404,477,700.20 404,477,700.20
(yuan)
Basic earnings per
0.47 0.51 0.51 -7.84% 0.33 0.32
share (yuan / share)
Diluted earnings per
0.47 0.51 0.51 -7.84% 0.32 0.32
share (yuan / share)
Weighted average
13.11% 19.04% 19.12% -6.01% 13.92% 13.62%
return on net assets
Increase or
decrease at the
end of the current
End of 2020 End of 2019
year compared
End of 2021
with the end of
the previous year
Before After adjustment After adjustment Before After adjustment
adjustment adjustment
Total assets (yuan) 9,606,992,402.39 6,808,735,037.28 6,774,684,691.87 41.81% 5,121,650,811.96 5,089,457,576.89
Net assets attributable 5,028,315,406.63 3,463,681,980.54 3,457,256,863.83 45.44% 2,510,384,699.83 2,492,678,420.43
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to shareholders of
listed companies
(yuan)
Reasons for changes in accounting policies and correction of accounting errors
In view of the Company's plan to split its holding subsidiary Shenzhen Yako Automation Technology Co.,
Ltd. (hereinafter referred to as Yakotec) for A-share listing, the Company found important early errors in the audit
process of share reform of Yakotec and made the following adjustments to its accounting based on the principle
of prudence in order to maintain the consistency of IPO audits:
(1) Capitalization adjustment of research and development expenses
R&D projects of Yakotec are divided into research stage and development stage. Projects meeting R&D
capitalization conditions were capitalized in previous years. We made retroactive adjustments and expensed the
projects capitalized in the previous period in this audit.
(2) Adjustment of share-based payment
Yakotec granted equity to key employees through the shareholding platform. However, it was not recognized
as share-based payment, and the corresponding expenses were not accrued. According to the definition in the
Accounting Standards for Business Enterprises No.11 - Share-based Payment, share-based payment refers to the
transaction in which an enterprise grants equity instruments or undertakes liabilities determined on the basis of
equity instruments in order to obtain services from employees and other parties. Therefore, the equity granted to
employees by Yakotec was retroactively recognized as share-based payment, and the corresponding expenses
were adjusted and accrued. Corrections were made with the retroactive restatement method.
Whichever was the lower of the Company’s net profit before or after deduction of non-recurring profit and loss for
the last three fiscal years was negative, and the audit report for the latest year showed that there was uncertainty
about the Company’s ability to continue as a going concern.
□ Yes √ No
The lower of the net profit before or after deduction of non-recurring profit and loss was negative
□ Yes √ No
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VII. 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) Difference between the net profit and net assets in the financial reports disclosed in accordance with
both overseas accounting standards and Chinese accounting standards at the same time
□ applicable √ not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with foreign
accounting standards and those disclosed in accordance with PRC GAAP during the reporting period.
VIII. Main financial indicators by quarters
Unit: Yuan
First quarter Second quarter Third quarter Fourth quarter
Operating income 1,697,665,239.89 1,946,380,372.51 1,974,866,843.92 2,148,122,378.71
Net profit attributable to
239,380,556.42 188,805,147.61 137,288,117.55 -509,539.40
shareholders of listed company
Net profit attributable to
shareholders of listed company
153,267,330.93 166,447,189.51 130,866,684.30 -18,542,985.86
after deducting non-recurring profit
and loss
Net cash flow from operating
-151,010,247.06 -74,695,491.07 50,414,589.82 -49,271,397.56
activities
Whether the above financial indicators or their sums are materially different from the relevant financial indicators
in the disclosed quarterly and semi-annual reports of the Company
□ Yes √ No
IX. Items and amount of non-recurring profit and loss
√applicable □ not applicable
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Unit: Yuan
Amount in Amount in Amount in
Items Description
2021 2020 2019
Profit and loss on disposal of non-current assets (including the
-789,236.29 -2,162,674.03 -2,689,991.66
write-off portion of the provision for asset impairment)
Government subsidies included in current profits and losses (except
those that are closely related to the normal business of the Company,
conform to national policies and regulations and are continuously 16,456,682.22 27,326,933.85 40,716,240.12
enjoyed in a fixed or quantitative manner according to certain
standards)
Gains and losses due to fair value changes arising from the holding of
trading financial assets and liabilities, as well as the investment
income from the disposal of trading financial assets and liabilities and 133,466,036.23 147,775,030.77 109,833,096.66
available-for-sale financial assets, except for the effective hedging
business related to the normal business of the Company
Other non-operating income and expenses other than those mentioned
-1,787,714.37 43,836.85 4,385,194.03
above
Other profit and loss items that meet the definition of non-recurring Financing
9,914,763.48 5,602,702.63 4,847,353.13
profit and loss income
Minus: amount affected by income tax 23,726,354.32 27,106,631.22 23,696,511.92
Amount affected by minority shareholder’s interest (after tax) 608,113.65 706,319.26 1,031,818.25
Total 132,926,063.30 150,772,879.59 132,363,562.11 --
Details of other profit and loss items that conform to the definition of non-recurring profits and losses:
□ applicable √ not applicable
The company has no other profit or loss items that meet the definition of non-recurring profit or loss.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profits and Losses
as recurring profit and loss items
□ applicable √ not applicable
The items of non-recurring profit and loss listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public — Non-Recurring Profits and Losses are not defined
as the recurring profit and loss by the Company.
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Section III Discussion and Analysis of the Management
I. Conditions of the industry of the Company during the reporting period
1. Basic information of the industry
Intelligent controllers are high-tech products developed by integration of sensing technology, microelectronic
technology and power electronic technology based on automatic control technology and computer technology,
which serve as a "nerve center" and "brain". Their application covers all walks of life, mainly in the fields of
household appliances, smart homes, intelligent buildings, power tools, industry and automation, automotive
electronics, new energy and medical equipment. In recent years, intelligent control technology has been
continuously integrated with new technologies such as 5G, Internet of Things, artificial intelligence and cloud
computing, accompanied with accelerated iteration of all products, continuously improved intelligence,
continuous emergence of new products, formats and models and a better development prospect of the intelligent
controller industry.
2. Position in the industry
The Company is a global leading provider of intelligent control solutions, focusing on the field of intelligent
control, adhering to the value concept of "agile innovation partner" and driving its development with
technological innovation. It has formed a comprehensive technical system of "electronic control, motor, battery,
power supply and Internet of Things platform" to provide customized intelligent control solutions for downstream
customers in industries such as home appliances, tools, new energy, industry and intelligent solutions. Centering
on the three unique capabilities, i.e. "platform-based technological innovation capability, partnership customer
service capability and systematic quick response capability", the Company keeps forging ahead and has
established close cooperative relations with a large number of industry heading customers. It has now become a
leader in intelligent control solutions in home appliance and tool industries and an innovation leader in new energy,
industry and intelligent solutions.
II. Main businesses during the reporting period
The Company mainly engages in R&D, production and sales of intelligent control system solutions, i.e.,
providing diversified customized solutions for industries of home appliances, tools, new energy, industrial and
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intelligent solutions, etc., with the “four electrics and one network” technology of electric control, motor, battery,
power supply 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
innovative leader in new energy, industrial and intelligent solutions.
Intelligent control
Home New Intelligent
business application Tool Industry
applianc energy solutions
in "five industries" es
Electric control Motor Battery Power source
Core technology technology technology technology technology
layout of "four
electrics and one
network"
IoT platform
1. Core technology of the Company: “four electrics and one network”: electric control, motor, battery,
power supply 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
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.
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1.3 Battery technology. The battery technology is a technology for energy storage and management. Its core
technologies include battery material application technology, cell design and manufacturing technology and
battery system integration technology. Battery material application technology includes related application
technologies of positive and negative electrode materials, electrolytes and diaphragm. Cell design and
manufacturing technology includes electrochemical architecture design, coating, lamination/winding, formation
and other manufacturing technologies. Battery system integration technology includes a series of technologies
such as battery assembly, thermal management, collision and leakage safety, accurate measurement of
voltage/current/temperature signals, battery state estimation and cell balance. The technology spans many fields
such as material science, electrochemistry, electronics and control engineering. After years of accumulation, the
Company has developed complete technical capabilities of design, development, customization and production
ranging from cell technology (CELL), battery management technology (BMS) to battery pack (PACK) system.
1.4 Power technology. Power technology is a kind of electric energy conversion technology, which can
transform the front-end input into the output required by the load safely, efficiently and intelligently. The
Company has analog power, switching power and digital power technology platforms of different power levels
and various types, which can provide charging and inversion solutions and various customized power solutions.
1.5 Internet of Things 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 for five industries, namely home
appliances, tools, new energy, industry and intelligent solutions.
2.1 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
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controllers, modules and complete machines.
2.3 New energy business
New energy business is mainly oriented to energy storage and green commuting, in which products and
system solutions including inverters, battery cells, battery management systems, battery packs, battery swap
cabinets, PACK and motor control are provided for fields such as energy storage of communication base stations,
household energy storage, motorcycles and tricycles, other special vehicles, new energy vehicles and the Internet
of Things.
2.4 Industry
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. We are committed to helping automation equipment manufacturers
improve equipment design performance, reduce equipment manufacturing costs, and speed up the development of
new equipment.
2.5 Intelligent solutions
In the field of intelligent solutions, comprehensive solutions of "innovative products + AIoT platform +
customized service" are provided for the subdivided scenes such as "food, clothing, housing and transportation"
and "industry, restaurants, hotels and parks" based on the AloT (Artificial Internet of Things) technology platform
and intelligent product innovation capability of the Company.
III. 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
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
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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, building a customer-centered process-oriented organization and 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.
IV. Main business analysis
1. Overview
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
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national economic development and achieved rapid growth during the reporting period.
In 2021, the epidemic at home and abroad still recurred, sometimes had a local rebound, and the impact is
still not eliminated. 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, localization transfer and
demand concentration enhancement depending on its product power, technological innovation, systematic
management ability accumulated for many years. Faced with difficulties and challenges, we chose to share risks
and benefits, conduct long-term cooperation with our customers and accomplish customers so as to achieve
mutual prosperity and development and boost the development of an intelligent and low-carbon world.
Thanks to the efforts of all Topband staff, operating revenues of the Company achieved a compound growth
rate of over 30% in the past five years. The Company achieved operating revenues of 7.767 billion yuan during
the reporting period, a year-on-year increase of 39.69%, net profits of 565 million yuan attributable to
shareholders of listed companies, a year-on-year increase of 6.16%, and net profits of 432 million yuan
attributable to shareholders of listed companies after deduction of non-recurring gains and losses, a year-on-year
increase of 13.28%.
Annual operating performance and core operating indicators in 2021:
(I) Revenues more than expected and achievement of annual sales targets
1. Expansion of intelligent scenarios, opening up the space for industry growth
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 will still maintain a high degree of prosperity. External factors such as the epidemic and
turbulence in the supply market may affect the rhythm of industry demands in the short term, but will not affect
the sustained growth of the industry brought about by intelligence, low carbon and multi-regional development.
For mature business, we went to the front end to gain insight into market opportunities, deeply understand
customer needs, seize new opportunities constantly and strive for more orders to ensure the scale advantage of the
Company. For growing business, we improved our ability continuously and gave full play to our existing
advantages to incubate and market innovative products constantly and achieve commercial success. At the same
time, we continued to expand new tracks and open up new growth points, and finally achieved long-term strategic
goals. Looking forward to the future, we are confident to grasp new opportunities in the market, continue to
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deepen the intelligent control industry, lead the industry forward, and become a global leading and respected
intelligent control solution provider.
2. Achievement of annual sales targets beyond the expected and consolidation of the leading position of
the Company
The epidemic in China and abroad had repeated outbreaks in 2021. Facing the complicated and volatile
business environment such as raw material price increase and shortage under the influence of the epidemic and
inflation, the management of the Company responded positively, seized the opportunity of intelligent upgrading
and demand concentration improvement according to the strategy of "supply guarantee" formulated at the
beginning of the year, and implemented the five core strategies unswervingly to seize market share rapidly. In
2021, the five major sectors of the Company achieved good growth year on year, and the customer structure
became healthier. The number of head customers exceeded 100, revenues from which accounted for more than
80% of the Company's total operating revenues. We realized the growth of both the number and volume of head
customers, laying a solid foundation for the subsequent sustained and steady growth.
3. Shoulder-to-shoulder and distinctive development of all business units
(1) Tool unit: becoming the first business unit of the Company. In 2021, the sales revenue was 2.994 billion
yuan, a year-on-year increase of 43.36%.The downstream market of the tool unit is concentrated. With obvious
advantages in the unit, the Company has entered the supply system of several head customers. Its market share
increased steadily. Product categories expanded horizontally. Except for electric tools, garden tools, utility lights
and floor care and cleaning products all achieved rapid growth during the reporting period. The main driving force
for the growth of the unit is the continuous expansion of application scenarios, the opening of incremental market,
the upgrading of technology in stock market, and the realization of lithium battery and cordless application. The
sustained growth of the industry will not be changed by short-term factors such as the epidemic.
(2) Home appliance unit: maintaining a strong growth trend with the growth rate higher than the average of
the industry as the basic business of the Company. In 2021, the sales revenue was 2.959 billion yuan, a
year-on-year increase of 37.36%.The main reasons included the smooth development of big customers, the
increase of the number and volume of customers, and the constant emergence of innovative products, e.g. the
rapid growth of innovative intelligent devices, kitchen appliances, purification products and service robots which
opened up the growth space of the home appliance unit. For the traditional business, the Company will strengthen
the ability to gain insight into market opportunities, deeply understand customer needs, improve its resource
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integration ability and internal operational efficiency, and strive for more orders to ensure its scale advantages. For
innovative business, we will make use of the core advantages of technological innovation to incubate and market
innovative products continuously so as to achieve both commercial success and rapid growth.
(3) New energy unit: In 2021, the sales revenue reached 1.241 billion yuan, up 38.86% year-on-year.
Focusing on energy storage, green commuting and other fields, the unit has become the third growth curve of the
Company. Relying on years of technology accumulation and stable quality assurance, we can open the market
quickly with the advantages of customized solutions and continue the trend of high growth in the future.
Energy storage: In 2021, the sales revenue was 881 million yuan, accounting for about 70% of the new
energy unit, a year-on-year growth of 37.74%.The main application fields of energy storage were household
energy storage, portable energy storage, standby power for communication and industrial and commercial energy
storage. The operating revenue of household energy storage and portable energy storage doubled during the
reporting period. It is expected to continue the high growth trend in 2022.In terms of household energy storage,
complete lithium battery products were provided for overseas household energy storage and electrical power
supply for RVs and yachts. In portable energy storage, inverter products were mainly provided for head customers
in China. The proportion of standby power for communication decreased year on year due to the price increase of
upstream materials and the limitation of production capacity. Industrial and commercial energy storage accounted
for a low proportion. It is expected to build a new growth point in the future.
Green travel. In 2021, the sales revenue reached 360 million yuan, accounting for about 30% of the new
energy unit, a year-on-year growth of 41.66%.The main application fields were new energy vehicles and light
power. In the field of new energy vehicles, charging pile controllers, electronic water pumps and DC brushless
motors were mainly provided. In 2021, the sales revenue was about 100 million yuan, a year-on-year growth of
157.30%.With the popularization of new energy vehicles, it is expected to continue the trend of high growth. In
the field of light power, BMS or complete products were mainly provided for swap cabinets, electric motorcycles
and tricycles and mobile robots. The growth of the unit was lower than expected due to the influence of upstream
materials.
(4) Industrial unit: In 2021, the sales revenue was 295 million yuan, a year-on-year increase of 14.41%. 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. We are committed to helping automation equipment manufacturers improve
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equipment design performance, reduce equipment manufacturing costs, and speed up the development of new
equipment. Benefiting from domestic substitutions and intelligent upgrading of factories, the unit will usher in a
new boom cycle in the future.
(5) Intelligent solutions: In the field of intelligent solutions, comprehensive solutions of "innovative
products + AIoT platform + customized service" are provided for the subdivided scenes such as "food, clothing,
housing and transportation" and "industry, restaurants, hotels and parks" based on the AloT (Artificial Internet of
Things) technology platform and intelligent product innovation capability of the Company. In 2021, the sales
revenue was 221 million yuan, a year-on-year increase of 60.40%, among which the revenue of networked
products doubled.
(II) Supply side faced with severe challenges
The supply market was extremely turbulent in 2021. The extensive shortage of raw materials and the
continuous sharp increase of prices aggravated the original complex supply and manufacturing pattern. Due to the
variety of upstream raw materials of the Company, the uncertainty of supply brought great challenges to its
procurement, production and delivery. In comparison with the shortage of materials in 2018, the management of
the Company anticipated the severe situation in advance and formulated important strategic measures of "supply
guarantee" in time at the beginning of the year. It guaranteed the timely delivery of customer orders to the greatest
extent and reduced the impact of shortage and price increase on business delivery greatly by communication with
customers in advance about demand plans, stocking in advance, domestic substitutions and stock allocation at
high prices. However, the Company failed to achieve the goals of material cost reduction and manufacturing
efficiency improvement set at the beginning of the year due to the significant price rise of some raw materials and
the serious shortage of supply. Some orders experienced stock allocation at high prices in the second half of 2021,
and the costs were not greatly transmitted to downstream and new products, which had a certain impact on the
Company's operating profits in the short term. With the gradual decline of raw material prices in the future, its
profitability is expected to return to the normal level and the growth rate of profits will also recover gradually.
(3) Adhering to R&D investment and tapping the blue ocean market driven by innovation
The Company adheres to the concept 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. In 2021, the Company continued to promote and deepen the
technology accumulation and application of "electronic control, motor, battery, power supply and Internet of
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Things platform" in five major industries, and accelerated the integration and application of new technologies
such as AI, IOT and 5G and the implementation of more scenarios.
The total R&D investment of the Company was 560 million yuan during the reporting period, up 41.02%
year-on-year, accounting for 7.21% of operating revenues. There were nearly 1,600 R&D and technical service
personnel. The Company created an innovative cultural atmosphere internally and strengthened the protection of
independent and controllable products and independent intellectual property rights externally. The Company and
its subsidiaries applied for 2,346 patents, including 868 patents for invention, 1,209 utility models, 193 design
patents, 23 foreign patents and 53 PCTs, 85 software copyrights and 276 trademarks accumulatively at the end of
the reporting period. The R&D investment of the Company accounted for about 7% of its operating revenues in
the past ten years. With a high proportion of continuous R&D investment, a lot of innovative products emerged,
such as inverters, thermostats, cooking machines, lawn mowers and floor washers. The proportion of independent
and controllable business increased rapidly in 2021, contributing a steady stream of power to the future
sustainable development. The Company also started a business model of long-term development driven by
innovation.
(IV) Multi-regional common development and accelerated process of internationalization
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. We
set up more than ten regional operation centers, manufacturing centers, R&D centers and representative offices in
many places around the world based on the needs of business development. In 2021, Vietnam Phase II went into
production quickly in spite of many difficulties, and overseas operation centers in Germany and North America
and manufacturing centers in Romania and Mexico were newly established to accelerate the international 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. Huizhou Subsidiary is the main
source of production capacity, with stable production capacity and quality. At the same time, some leased factories
have been added to meet the fast-growing demand.
Yangtze River Delta region: Ningbo Operation Base was completed at the end of 2021 and put into service
in 2022 and has now entered the capacity climbing period. It will gradually release the capacity. Nantong Lithium
Battery Industrial Park is going through property rights delivery according to the agreement and is expected to be
put into service in the second half of 2022.
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Southeast Asia - Vietnam: Though Vietnam Binh Duong Company (Phase I) was affected by the epidemic
in 2021, it overcame many difficulties, including personnel and materials, to help customers realize the agility and
safety of the supply chain and contributed an output value of 552 million yuan. Vietnam Dong Nai Company
(Phase II) was put into production successfully during the reporting period, and will contribute new capacity in
2022.
Southeast Asia - India: India experienced severe epidemic in 2021. The Company achieved the production
capacity target set at the beginning of the year during the reporting period by telecommuting means such as video
and internet. During the reporting period, Indian Subsidiary also obtained the BIS product certification of inverter
air conditioner controllers in India issued by the Bureau of Indian Standards (BIS for short), and became one of
the first enterprises in the world to pass the certification.
(V) Cash flow from operating activities
In 2021, the net cash flow generated by the Company's operating activities was -225 million yuan, down by
134.66% year-on-year, mainly due to the epidemic in combination with the turbulent supply of raw materials and
the stocking in advance, stock allocation at high prices and advance payment for the purpose of ensuring the
timely delivery of customer products. It is expected that the operating cash flow will improve after stabilization of
the supply.
(VI) Capital operation: non-public offering + acquisition + equity incentive
1. Non-public offering of shares, raising funds of 1.05 billion yuan successfully. 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; To speed up the project, the implementation site and mode of some raised funds were changed upon
review and approval of the shareholders’ meeting of the Company in January 2022.
2. Acquisition of the equity of Ninghui Lithium Battery and expansion of the lithium battery product line
with self-owned fundsTopband Lithium Battery, a wholly-owned subsidiary of the Company, obtained 90.48% of
the equity of Taixing Ninghui Lithium Battery Co., Ltd. through partial equity acquisition and capital increase
with its self-owned funds amounting to 33.4 million yuan. The lithium battery product line was expanded through
this acquisition, and the cylindrical battery capacity of the Company was improved for use in the light power field.
3. Launch of a new equity incentive plan to enrich the medium- and long-term incentive mechanism of the
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Company. During the reporting period, the Company launched a restricted stock incentive plan, granting a total of
33.54432 million restricted stocks to 1,224 employees, and practiced its philosophy of "value co-creation and
sharing" with the continuous high growth of performance as the unlocking condition, allowing the core backbone
of the Company to truly become its owner and stimulating the internal drive of employees to realize the common
growth of individuals and organizations.
(VII) Other factors influencing profits
1. Increase of fair value gains, increasing the Company's non-recurring operating 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 non-recurring operating profit
by about 93.347 million yuan in 2021.
2. Provision for credit impairment, reducing the Company's current recurring operating profit. With the
increasing complexity of the global economic situation, the uncertainty faced by business entities has increased.
Individual customers of the Company made overdue payment and had business risks. The Company fully accrued
69.2331 million yuan of provision for credit impairment reserve according to the requirements of accounting
standards.
2. Revenue and cost
(1) Composition of operating income
Unit: Yuan
2021 2020
Year-on-year
Proportion in Proportion in
Amount Amount increase and decrease
operating income operating income
Total operating
7,767,034,835.03 100% 5,560,182,998.21 100% 39.69%
income
By industry
Intelligent control
7,767,034,835.03 100.00% 5,560,182,998.21 100.00% 39.69%
electronics industry
By product
Tool 2,994,451,368.50 38.55% 2,088,701,558.30 37.57% 43.36%
Home appliances 2,959,263,866.21 38.10% 2,154,454,813.96 38.75% 37.36%
New energy 1,241,478,904.30 15.98% 894,062,480.43 16.08% 38.86%
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Industry 295,153,637.29 3.80% 257,988,191.43 4.64% 14.41%
Intelligent solutions 221,269,657.19 2.85% 137,950,247.99 2.48% 60.40%
Other 55,417,401.54 0.71% 27,025,706.10 0.49% 105.05%
By region
Domestic 3,427,652,622.28 44.13% 2,495,663,711.95 44.88% 37.34%
Foreign 4,339,382,212.75 55.87% 3,064,519,286.26 55.12% 41.60%
By sales model
Basing production on
7,767,034,835.03 100.00% 5,560,182,998.21 100.00% 39.69%
sales prospects
(2) The situation of industries, products, regions or sales models accounting for more than 10% of the
Company’s operating income or operating profit
√ applicable □ not applicable
Unit: Yuan
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Gross profit
Operating income Operating cost operating income operating costs profit rate over
rate
over the same over the same the same period
period of last year period of last year of last year
By industry
Intelligent control
7,767,034,835.03 6,114,531,354.87 21.28% 39.69% 45.44% -3.11%
electronics industry
By product
Tool 2,994,451,368.50 2,322,704,928.43 22.43% 43.36% 53.21% -4.99%
Home appliances 2,959,263,866.21 2,380,662,056.81 19.55% 37.36% 40.73% -1.93%
New energy 1,241,478,904.30 971,706,470.22 21.73% 38.86% 41.45% -1.44%
By region
Domestic 3,427,652,622.28 2,696,541,712.06 21.33% 37.34% 42.10% -2.63%
Foreign 4,339,382,212.75 3,417,989,642.81 21.23% 41.60% 48.18% -3.50%
By sales model
Basing production
7,767,034,835.03 6,114,531,354.87 21.28% 39.69% 45.44% -3.11%
on sales prospects
When the statistical caliber of the Company's main business data is adjusted in the reporting period, the
Company's main business data for the most recent year shall be the data adjusted according to the caliber at the
end of the reporting period
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□ applicable √ not applicable
(3) Whether the Company’s income from physical sales greater than that from labor services
√ Yes □ No
Industry Year-on-year
Items Unit 2021 2020
classification increase and decrease
Sales volume PCS 174,889,510 138,520,341 26.26%
Intelligent control
Production output PCS 181,035,707 143,306,093 26.33%
electronics industry
Inventory PCS 16,559,826 10,413,629 59.02%
Reasons for the change of more than 30% in relevant data
√ applicable □ not applicable
The sales volume of P>200 yuan was 4.1964 million PCS, and the sales revenue was 1.820 billion yuan;
The sales volume of 100 yuan≤ P< 200 yuan was 13.7210 million PCS, and the sales revenue was 1.844 billion
yuan;
The sales volume of 50 yuan≤ P< 100 yuan was 24.0538 million PCS, and the sales revenue was 1.776 billion
yuan;
The sales volume of P< 50 yuan was 132.9184 million PCS, and the sales revenue was 2.327 billion yuan.
During the reporting period, the sales volume increased by 26.26% year-on-year, mainly due to the increase of
customer orders and shipments during the reporting period.
During the reporting period, the production increased by 26.33% year-on-year, mainly due to the increase of
customer orders and production capacity during the reporting period.
During the reporting period, the inventory increased by 59.02% year-on-year, mainly due to the increase of
production capacity during the reporting period and Spring Festival stock.
(4) Performance of major sales contracts and major procurement contracts signed by the Company up to
the reporting period
□ applicable √ not applicable
(5) Composition of operating cost
Industry and product classification
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Unit: Yuan
2021 2020 Year-on-year
Industry
Items Proportion in Proportion in increase and
classification Amount Amount
operating cost operating cost decrease
Intelligent control
electronics Operating cost 6,114,531,354.87 100.00% 4,204,293,830.77 100.00% 45.44%
industry
Unit: Yuan
2021 2020 Year-on-year
Product
Items Proportion in Proportion in increase and
classification Amount Amount
operating cost operating cost decrease
Tool Operating cost 2,322,704,928.43 37.99% 1,516,015,580.60 36.06% 53.21%
Home appliances Operating cost 2,380,662,056.81 38.93% 1,691,624,876.57 40.24% 40.73%
New energy Operating cost 971,706,470.22 15.89% 686,947,605.50 16.34% 41.45%
Industry Operating cost 203,688,366.55 3.33% 172,445,418.80 4.10% 18.12%
Intelligent
Operating cost 188,848,535.84 3.09% 114,016,149.82 2.71% 65.63%
solutions
Other Operating cost 46,920,997.03 0.77% 23,244,199.48 0.55% 101.86%
Description
The Company readjusted the statistical caliber of product classification and added the classification of intelligent
solutions during the reporting period.
(6) Whether the consolidation scope has changed during the reporting period
√ Yes □ No
Nine new companies were included in the scope of consolidation during the reporting period, of which 7 were
newly established subsidiaries or sub-subsidiaries and the other 2 were merged enterprises not under the same
control.
(7) Major changes or adjustments in the Company’s business, products or services during the reporting
period
□ applicable √ not applicable
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(8) Main sales customers and suppliers
Main sales customers of the Company
Total sales amount of top five customers (yuan) 3,027,015,495.94
Proportion of total sales amount of top five customers in
38.97%
total annual sales
Proportion of related party sales in the top five customers’
0.00%
sales in the total annual sales
Top 5 customers material of the Company
No. Customer name Sales amount (yuan) Proportion of total annual sales
1 No.1 2,146,374,063.53 27.63%
2 No.2 256,155,125.44 3.30%
3 No.3 230,042,772.28 2.96%
4 No.4 200,175,407.21 2.58%
5 No.5 194,268,127.48 2.50%
Total -- 3,027,015,495.94 38.97%
Other information of main customers
□ applicable √ not applicable
Main suppliers of the Company
Total purchase amount of top five suppliers (yuan) 1,771,252,023.14
Proportion of total purchase amount of top five suppliers
29.04%
in total annual purchase amount
Proportion of purchase amount of related parties in total
0.00%
annual purchase amount of top five suppliers
Top 5 suppliers materials of the Company
No. Supplier name Purchase amount (yuan) Proportion of total annual procurement
1 No.1 1,372,501,493.15 22.50%
2 No.2 196,184,134.41 3.22%
3 No.3 73,476,265.45 1.20%
4 No.4 65,385,874.24 1.07%
5 No.5 63,704,255.89 1.04%
Total -- 1,771,252,023.14 29.04%
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Other information of main suppliers
□ applicable √ not applicable
3. Expenses
Unit: Yuan
Year-on-year
2021 2020 increase and Description of major changes
decrease
Sales expenses: The sales expenses in the reporting period increased
by 75.66 million yuan compared with those in the same period of last
Sales year, with an increase rate of 56.93%,mainly due to the increase of
208,562,819.10 132,898,433.70 56.93%
expenses salaries of staff, intermediary service fees and business entertainment
expenses incurred to achieve income growth within the reporting
period.
Management expense: It increased by 74.29 million yuan during the
reporting period than during the same period of last year, with an
increase of 40.36％.The main reason is that during the reporting
Management
258,345,031.89 184,057,471.19 40.36% period, the Company adjusted its organizational structure to meet the
expenses
needs of future strategic implementation, resulting in an increase in
expenses due to the corresponding increase in the number of
employees.
Financial expenses: The financial expenses in the reporting period
decreased by 113.2 million yuan compared with those in the same
Finance period of last year, with a reduction rate of 63.96%,mainly due to the
63,785,550.48 176,986,013.49 -63.96%
charges reduction of exchange loss caused by the exchange rate change
compared with that in the same period of last year and the income
offset by cash discount according to the new income standard.
Research R&D expenses: The R&D expenses in the reporting period increased
and by 132.41 million yuan compared with that in the same period of last
449,950,052.11 317,542,654.15 41.70%
development year, with an increase rate of 41.70%, mainly due to the increase of
expenses R&D resources input by the Company during the reporting period.
4. Research and development investment
√ applicable □ not applicable
Expected impact on the
Name of main
Project objective Project progress Intended goal future development of the
R&D project
Company
Research and Frequency conversion technology has The development Up to 20kw power section It can be widely used in
development of been widely applied with the increasing and verification of is supported. Energy the household and
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medium and demand of intelligent and low-carbon technology and efficiency, vibration and commercial electrical
high-power society. The project aims to overcome the product platform noise suppression are at appliance solutions of the
frequency technical difficulties of high-power, technology have the leading level in the Company, and will
conversion high-efficiency and low-noise frequency been completed, industry. The reliability of accelerate its exploration
control conversion, enrich the serial product and the products in complex and development in the
technology platforms of medium and high-power technology has application environments high-end ODM market.
electrical appliances in the Company, and been such as high temperature
further expand the application of its mass-produced in and high humidity is at the
frequency conversion technology. a number of leading level in the
products. industry.
With intelligent products, aging society
and rising labor costs, mobile service
robots have been applied rapidly in all Through the project, the
Three generations The mobile robot chassis
walks of life. Mobile robot chassis is the Company can keep the
of technology platform technology of the
core platform for synthesizing key leading position in the
platforms have third generation is at the
technologies of various robots as well as core underlying
been developed leading level. The product
Research and the most difficult and valuable part of technology of mobile
and are under platform has been applied
development of mobile robot product solutions. In the robots, and further
continuous in mass production in
mobile robot project, we will research and develop enhance its innovation
research and many scenes, such as
chassis dozens of key technologies, such as robot ability and
development. The home, garden and
technology mapping, positioning, planning, competitiveness in the
product platform industry, with leading
navigation, moving, obstacle avoidance, development of mobile
has been applied technical level and
multi-sensor fusion, machine vision and robot solutions. Some
in dozens of comprehensive
AI, and an integrated robot chassis projects will be scaled up
projects. competitiveness.
product platform, and realize mass successively.
production and application in multiple
scenes.
The Hall-less (sensorless)
Various electric tools and garden tools
detection estimation
have been applied widely and rapidly
algorithm leads the
with the development of society in order The technology can be
industry in the estimation
to improve the work efficiency and reduce Key technologies widely used in dozens of
accuracy of high, medium,
the labor intensity. Brushless DC motors have been products of electric and
Research and low and even zero speed
and their control technology are the core verified, and the garden tools, providing
development of positions. The cost and
technologies of electric and garden tools. results can be advantages in system
Hall-less motor reliability of the solution
The project focuses on the research of applied to the reliability, cost, volume,
drive and using Hall-less technology
Hall-less motor control technology and mass production weight and grip and
mechatronics are improved
mechatronics technology and the of products, further consolidating the
technology comprehensively by more
development and realization of which are being leading position of the
than 30%.The
high-reliability, low-cost and marketed. Company in the tool
performance and cost of
small-volume tool product solutions, market.
mechatronics design are
further expanding the leading position of
improved
the Company in tool products.
comprehensively by more
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
than 30%.
There are increasing market demands for
product miniaturization, light weight,
high reliability and low cost in the The technology can be
application of various hand-held electric widely applied in electric
Research and and garden tools. The project aims to Technology and tools, providing
development of develop a solution platform of motor product modules The solution is optimized advantages in product
control and control and switch integration. Tool have been tested by more than 30% in reliability, volume and
switch switches and drive controllers are highly and verified, and reliability, volume and comprehensive cost and
integration integrated through innovative research on are being comprehensive cost. further consolidating the
technology structure, circuit and assembly process, marketed. leading position of the
thus greatly improving the integration and Company in the tool
reliability of the solution and further market.
optimizing the product design, assembly
process and comprehensive cost.
Permanent magnet motors are widely
used. The project aims to improve the
performance of permanent magnet
motors, reduce their noise, and design and
The performance and The technology has a
develop new permanent magnet motor
noise level of new wide application prospect
technology. It intends to improve the
permanent magnet motors in DC brushless motor
stability of motor operation and greatly
Research and Technical are at the leading level in products of the Company,
improve the vibration of motors through
development of verification has the industry. Permanent which can further
the research on the innovative application
new permanent been completed in magnet motors with new enhance its
of permanent magnet structure, enhance
magnet motor the research and structure can be used in competitiveness in the
the magnetism gathering ability and the
technology development. mass production in field of high-performance
magnetic energy product of permanent
high-efficiency DC motors and strengthen its
magnets and realize ultra-low magnetic
brushless motors and strength of application in
leakage by optimizing the motor structure
other products. tools and other fields.
and the fixing of magnetic steel, thus
achieving the goal of greatly reducing the
performance requirements of magnetic
steel under the same motor performance.
New energy is a revolution in the field of
energy, and large-capacity single cells The technology enriches
Research on indicate an important development The energy density, high the battery cell and
technology direction of power and energy storage and low temperature battery product lines of
Mass production
platform of lithium batteries. The project develops a discharge performance the Company and will
has been
large-capacity high-capacity and high-energy density and long cycle life of the help the Company to
achieved.
single lithium battery cell product platform of the product are at the leading develop its business in
iron battery cells Company at the 100Ah level by level in the industry. the fields of energy
optimizing the packaging mode of battery storage and light power.
cells, increasing their size and capacity
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
and reducing redundant components,
which can effectively improve the
capacity and energy density of single
battery cells, increase the integration
efficiency of PACK and reduce the
comprehensive cost of battery system.
The successful research
and development of the
Sodium ion secondary batteries have
technology platform and
unique advantages in safety, cost,
product platform will
low-temperature capacity retention and
help the Company to
over-discharge resistance, and indicate an
launch a series of sodium
important future development direction of
The technical ion battery products
Research on batteries because of their abundant
principle has been which will supplement
technology sodium salt raw materials. The project
verified, and the Energy density and cost the existing series of
platform of new studies and addresses difficult problems
technology is level rank among the top lithium iron phosphate
sodium ion of new sodium cathode materials existing
under continuous in the industry. battery products
secondary in cell design, application and
research and effectively. It is expected
batteries manufacturing process, develops a
development. to improve the
technology platform and product platform
competitiveness of the
of sodium ion secondary batteries, and
Company in the
makes a good reserve of new products for
large-scale energy
the further development of new energy
storage application
business.
market and gain more
market share.
The application of servo system is
becoming more and more popular with The driver can realize As one of the
the development of automation and automatic identification representative
intelligence in the industrial field. The and optimization of manufacturers of servo
field parameter adjustment of servo motor R&D and mass dozens of important localization, the
Research on drive system is a big difficulty in production have parameters that affect the Company has developed
parameter application. It is necessary to study been completed, servo drive effect so that several generations of
self-tuning automatic parameter calibration and and the the servo system can servo drive, control and
technology of setting technology so as to improve the technology is achieve the best motion motor products. The
servo drivers debugging efficiency and obtain the best under continuous control performance. The implementation of the
servo drive effect. The research provides optimization. products are leading the project will accelerate the
convenience for the parameter adjustment industry in terms of the promotion and
of servo motor drive system and allows ease of use and application of servo
the debugger to deal with various intelligence. products of the Company.
debugging problems easily.
Research on The social demand for green new energy A technology and The technology is at the The leading technology
digital power and efficient power supply technology has product platform leading level in the supports the business
technology risen sharply with the implementation of for mass industry in terms of the breakthrough of the
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
platform the national "double carbon" policy. production has high-power (from several Company in the field of
Digital power supply technology is a been formed, and kw to tens of kw) power high-end digital power
revolutionary technology of high-power the technology is conversion efficiency and supply, and is widely
and high-efficiency power supply. The under continuous reliability in complex applied in green
project studies the digital architecture research and application scenes. commuting, energy
under different power supply topologies, development and storage and other new
builds related DSP processors and upgrading. energy sources.
all-digital feedback technology platforms
and grasps the core digital power supply
algorithm so as to improve the control,
management, detection and intelligence
level of power supply comprehensively
and develop a technology and product
platform of medium- and high- power
digital power supply.
With the extensive application of artificial
intelligence technology and the
continuous development of product
intelligence, how to apply artificial
The embedded AI
intelligence technology in embedded
technology will further
products such as smart home appliances
consolidate the leading
and innovative hardware has become a Several prototype The AI algorithm and
Research and position of the Company
hot spot. The project can realize more products have performance are at the
development of in the new generation of
intelligent automatic recognition and been marketed in leading level in the
embedded intelligent control
interactive operation in place of users the continuous industry, and the
artificial technology, and support
through the research of machine vision development of embedded AI technology
intelligence the Company in the
and speech recognition algorithm, thus the technology is leading in more than
technology innovation and creation
reducing the complexity of use of platform. three product applications.
of more new products
products by users and greatly improving
and the development of
the user experience. The project will also
more blue ocean markets.
build an algorithm and implementation
platform for embedded AI, and develop
innovative products for various
application scenes.
R&D personnel of the Company
2021 2020 Change ratio
Number of research and
1,582 1,345 17.62%
development personnel (person)
Proportion of research and
18.73% 21.59% -2.86%
development personnel
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Academic structure of R&D
—— —— ——
personnel
Undergraduate 1,059 883 19.93%
Master 113 116 -2.59%
Doctor and above 1 4 -75.00%
Junior college degree and below 409 342 19.59%
Age structure of R&D personnel —— —— ——
Below 30 707 483 46.38%
30 ~ 40 735 716 2.65%
Above 40 140 146 -4.11%
Research and development investment of the Company
2021 2020 Change ratio
Research and development
559,857,194.43 397,002,480.37 41.02%
investment amount (yuan)
Proportion of research and
development investment in 7.21% 7.14% 0.07%
operating income
Capitalization amount of
research and development 109,907,142.32 79,459,826.22 38.32%
investment (yuan)
Proportion of capitalized
research and development
19.63% 20.01% -0.38%
investment in research and
development investment
Reasons for and influences of significant changes in the composition of R&D personnel in the Company
□ applicable √ not applicable
The reason why the proportion of total research and development investment in operating income changed
significantly compared with that of the previous year
□ applicable √ not applicable
The reason and rationality of the great change of research and development investment capitalization rate
□ applicable √ not applicable
5. Cash flow
Unit: Yuan
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Year-on-year increase
Items 2021 2020
and decrease
Subtotal of cash inflow from operating activities 7,877,451,630.46 5,365,550,244.38 46.82%
Subtotal of cash outflow from operating activities 8,102,014,176.32 4,717,649,536.00 71.74%
Net cash flow from operating activities -224,562,545.86 647,900,708.38 -134.66%
Subtotal of cash inflow from investment activities 591,071,911.81 829,117,841.78 -28.71%
Subtotal of cash outflow from investment activities 1,339,243,115.38 1,210,840,008.02 10.60%
Net cash flow from investment activities -748,171,203.57 -381,722,166.24 -96.00%
Subtotal of cash inflow from financing activities 2,395,480,159.32 595,643,453.03 302.17%
Subtotal of cash outflow from financing activities 852,767,599.74 390,804,539.83 118.21%
Net cash flow from financing activities 1,542,712,559.58 204,838,913.20 653.13%
Net increase in cash and cash equivalents 539,269,123.28 434,990,514.43 23.97%
Description of main influencing factors of significant changes in relevant data year-on-year
√ applicable □ not applicable
1. Net cash flow from operating activities: It decreased by 134.66% in the reporting period compared with
that in the same period of last yearmainly due to the increased purchase of materials in response to the rising price
and shortage of materials, and the cash outflow from operating activities greater than the inflow caused by the
increase of various expenses.
2. Net cash flow from investment activities: It decreased by 96.00% in the reporting period compared with
that in the same period of last year, mainly due to the successive construction of production bases and the
investment in overseas bases and domestic equity investment expenditures leading to the outflow from investment
activities exceeding the inflow.
3. Net cash flow from financing activities: It increased by 653.13% in the reporting period compared with
that in the same period of last year, mainly due to the receipt of funds raised by non-public offering of shares and
equity incentives in the reporting period.
Reasons for the significant difference between the net cash flow generated by the Company’s operating activities
and the net profit of the current year in the reporting period
√ applicable □ not applicable
Net cash flow from operating activities: It was -224.56 million yuan in the reporting period, for the main
reasons that the Company greatly increased the stock amount and meanwhile supported suppliers by prepayment
and advance payment so as to ensure delivery due to the tight supply of raw materials and the rising prices of raw
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materials such as chips in 2021, and that some period expenses were increased in order to achieve its strategic
objectives.
V. Analysis of non-main business
√ applicable □ not applicable
Unit: Yuan
Whether it
Proportion in
Amount Explanation of formation reason is
total profit
sustainable
It mainly refers to the investment income and temporary idle capital
Income from Not
54,827,083.25 8.84% financing income generated from the disposal of tradable financial assets
investment sustainable
of Dynanonic held during the reporting period
It is mainly caused by the changes in fair value of the shares held by
Profit and loss
ORVIBO during the reporting period and the profit and loss of fair value Not
from changes 85,670,316.15 13.81%
changes recognized in the early stage of the transfer out of tradable sustainable
in fair value
financial assets of Dynanonic held during the reporting period
Impairment of The main reason is that the impairment loss of accounts receivable in the Not
-185,588,973.64 -29.92%
assets reporting period was greater than that in the same period of last year. sustainable
Non-operating
2,260,355.74 0.36%
income
Non-operating
5,538,292.94 0.89%
expenses
VI. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: Yuan
End of 2021 Beginning of year 2021
Increase or
Proportion Proportion
decrease of Description of major changes
Amount in total Amount in total
proportion
assets assets
Monetary
1,767,580,056.07 18.40% 1,219,095,476.50 17.99% 0.41%
capital
Accounts receivable: The
accounts receivable increased by
Accounts
2,188,161,465.48 22.78% 1,701,111,153.84 25.11% -2.33% about 487.05 million yuan in the
receivable
reporting period compared with
those at the beginning of the
38
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
period, with an increase rate of
28.63%.The main reason is that
the sales revenue in the reporting
period increased greatly
compared with that in the same
period of last year, resulting in
the increase of the corresponding
accounts receivable at the end of
the period.
Inventory: increase of
1,069,090,000 yuan than at the
beginning of the period, with an
increase of 95.86%.The main
reason is that the Company
Inventory 2,184,402,766.04 22.74% 1,115,312,868.62 16.46% 6.28% increased raw material stock and
in-process products and finished
products to meet the order
delivery in response to the impact
of rising prices and shortage of
supply of raw materials.
Investment
86,975,114.31 0.91% 89,238,265.71 1.32% -0.41%
Property
Long-term equity investment:
The long-term equity investment
increased by 19.62 million yuan
Long-term in the reporting period compared
equity 26,119,127.82 0.27% 6,502,528.13 0.10% 0.17% with that at the beginning of the
investment period, with an increase rate of
301.68%,mainly due to the
increase of equity investment in
the reporting period.
Fixed assets 1,299,517,887.54 13.53% 1,096,875,640.94 16.19% -2.66%
Construction in progress: The
cost increased by 202.77 million
yuan in the reporting period
compared with that at the
Construction beginning of the period, with an
495,248,025.93 5.16% 292,474,798.41 4.32% 0.84%
in progress increase rate of 69.33%,mainly
due to the great increase of the
investment in project
construction of operation centers
in various places.
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Right-of-use assets: The
Right-of-use Company implemented the new
58,168,151.88 0.61% 30,939,385.41 0.00% 0.61%
assets lease standards during the
reporting period.
Short-term
409,531,107.26 4.26% 402,151,500.00 5.94% -1.68%
loans
Contractual
93,328,006.70 0.97% 72,576,117.56 1.07% -0.10%
liabilities
Long-term loans: Long-term
loans increased by 275.02 million
yuan at the end of the reporting
period compared with those at
Long-term
475,020,000.00 4.94% 200,000,000.00 2.95% 1.99% the beginning of the period, with
loans
an increase rate of 137.51%,
mainly due to the increase of
long-term loans from banks
during the reporting period.
Lease liabilities: The company
Lease implemented the new leasing
40,290,402.14 0.42% 30,939,385.41 0.00% 0.42%
liabilities criteria during the reporting
period.
High proportion of overseas assets
√ applicable □ not applicable
Control Proportion Whether
measures to of foreign there is a
Asset Reasons for Locatio Operation
Asset size ensure the Earning position assets to net significant
details formation n mode
safety of assets of the risk of
assets Company impairment
Financial
Operation Investment R&D,
Pune, supervision,
Center in and 285,430,219.92 production -902,626.68 5.68% No
India external
India establishment and sales
audit
Financial
Operation Investment Binh R&D,
supervision,
Center in and 371,439,978.15 Duong, production 123,337,066.73 7.39% No
external
Vietnam establishment Vietnam and sales
audit
2. Assets and liabilities measured at fair value
√ applicable □ not applicable
40
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Unit: Yuan
Profit and Impairm
Changes in
loss from ent
cumulative Purchase Amount sold Other
Opening changes in accrued Closing
Items fair value amount in the in the current change
balance fair value in in the balance
included in current period period s
the current current
equity
period period
Financial assets
1. Tradable 214,999,336.74
financial assets
(excluding
226,491,482.10 85,670,316.15 138,514,207.31 440,000,000.00 537,162,461.51
derivative
financial
assets)
Subtotal of 214,999,336.74
226,491,482.10 85,670,316.15 138,514,207.31 440,000,000.00 537,162,461.51
financial assets
Total of the 214,999,336.74
226,491,482.10 85,670,316.15 138,514,207.31 440,000,000.00 537,162,461.51
above
Financial 0.00
0.00 0.00 0.00 0.00 0.00
liabilities
Contents of other changes
Whether there are significant changes in the measurement attributes of the Company’s main assets during the
reporting period
□ Yes √ No
3. Restricted asset rights by the end of the reporting period
See Sections X, VII and (LXXXI) of this report for details.
VII. Investment analysis
1. General situation
√ applicable □ not applicable
Investment in the reporting period (yuan) Investment amount in the same period of last year (yuan) Range of change
68,500,000.00 5,250,000.00 1,204.76%
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
2. Major equity investment obtained during the reporting period
√ applicable □ not applicable
Unit: Yuan
Ter
Whethe
Sou m Pro Esti
Sharehol r
Name of Inves rce Par of duc mate Current
Main Investment ding Progress as of the involve Disclosure Disclosure index (if
invested tment of tne inv t d investment
business amount proporti balance sheet date d in date (if any) any)
company mode capi r est typ inco profit and loss
on litigatio
tals me e me
n
nt
The industrial and
R D, commercial
Taixing
productio Ow Not Not change was
Ninghui Acqu
n and n No app app completed on http://www.cninfo.co
Lithium isitio 33,400,000.00 83.50% 0.00 -4,005,560.30 No 2021/1/16
sales of capi ne lica lica February 5, 2021 m.cn/
Battery n
lithium tals ble ble and included in
Co., Ltd.
batteries the scope of
consolidation
Total -- -- 33,400,000.00 -- -- -- -- -- -- 0.00 -4,005,560.30 -- -- --
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
42
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Unit: Yuan
Boo
Changes k
Profit and Purcha
Book in valu
loss from se Amount
Accountin value at cumulat Profit and e at Sourc
Securi Security Initial changes in amoun sold in Account
Securit g the ive fair loss in the the e of
ty abbreviat investment fair value t in the the ing
y type measurem beginning value reporting end capit
code ion cost in the curren current subjects
ent model of the included period of als
current t period
period in the
period period
equity peri
od
Domes
Fair value Tradable Own
tic and 30076 Dynanon 10,000,00 31,033,99 -30,241,53 792,461. 7,979,584
measurem 0.00 financial capit
foreign 9 ic 0.00 1.99 0.48 51 .91
ents assets als
stocks
Other investment in
securities held at the end 0.00 -- -- --
of the period
10,000,00 31,033,99 -30,241,53 792,461. 7,979,584
Total -- 0.00 0.00 0.00 -- --
0.00 1.99 0.48 51 .91
Disclosure date of
announcement of Board
of Directors for approval
of securities investment
Disclosure date of
announcement of
Shareholders’ Meeting
for approval of securities
investment (if any)
(2) Derivatives investment
√ applicable □ not applicable
Unit: 1,0000 yuan
Purchase Amount Proportion Actual
Initial Amount of
Name of Whether it amount sold Investment of profit
Types of investment Initial provision
derivatives is Start Termination during during amount at investment and loss
Relationship derivatives amount of investment for
investment connected date date the the the end of amount at amount
investment derivatives amount impairment
operator transaction reporting reporting the period the end of in the
investment (if any)
period period the period reporting
43
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
in net period
assets of
the
Company
at the end
of the
reporting
period
Forward
settlement
Non-related
Bank No and sale of 33,155.5 2021/1/4 2021/12/31 0 33,155.5 33,155.5 0 0.00% 819.3
party
foreign
exchange
Forward
settlement
Non-related
Bank No and sale of 6,635.5 2021/3/8 2021/12/31 0 6,635.5 6,635.5 0 0.00% 137.6
party
foreign
exchange
Total 39,791 -- -- 0 39,791 39,791 0 0.00% 956.9
Capital sources of derivatives investment Export collection
Litigation (if applicable) Not applicable
Disclosure date of announcement of Board of
Directors for approval of derivatives January 14, 2021
investment (if any)
Disclosure date of Shareholders’ Meeting
announcement for approval of derivatives
investment (if any)
1. Market risk: changes in the domestic 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 Company’s forward foreign exchange trading business is to lock in the price of foreign
exchange settlement or sale and reduce the impact of exchange rate fluctuations on the Company’s profits. The
Company will closely track the change of exchange rate. Based on the target exchange rate determined by the
Risk analysis and control measures of
business, through the research and judgment of the trend of foreign exchange rate, combined with the
derivatives positions in the reporting period
Company’s forecast of foreign exchange receipt and payment and the bearing capacity of price change caused
(including but not limited to market risk,
by exchange rate fluctuation, the Company will determine the plan of signing forward foreign exchange
liquidity risk, credit risk, operational risk, legal
trading contract, and implement dynamic management of the business, so as to ensure the reasonable profit
risk, etc.)
level of the Company.
2. Liquidity risk: All forward foreign exchange transactions of the Company are based on reasonable
estimation of the Company’s future import and export business to meet the demand of trade authenticity.3.
Bank default risk: If the cooperative bank fails during the term of the contract due to its bankruptcy, the
Company will not be able to deliver the original foreign exchange contract at the contract price, and there is a
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
risk of uncertain income. Therefore, the banks that the Company chooses to carry out foreign exchange trading
business are large and medium-sized banks, and the risk of its bankruptcy may bring losses to the Company is
very low.4. Operational risk: The Company may have relevant risks due to improper operation of the handling
personnel in the forward foreign exchange transaction business. The Company 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 Company’s forward foreign exchange trading business may
cause legal disputes due to the signing of relevant trading contracts with banks and unclear agreements. The
Company 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 Article 22 of the Accounting Standards for Business Enterprises-Recognition and Measurement
of Financial Instruments, and the fair value is basically determined according to the price provided or obtained
In the case of changes in the market price of
by pricing service institutions such as banks. The Company’s accounting for the fair value of derivatives is
the invested derivatives or the fair value of the
mainly the unexpired forward foreign exchange settlement and sale contract signed by the Company and the
products during the reporting period, the
bank during the reporting period. According to the difference between the exchange rate agreed in the
analysis of the fair value of derivatives should
unexpired forward foreign exchange settlement and sale contract at the end of the period and the delivery
disclose the specific methods used and the
exchange rate indicated in the forward contract signed by large and medium-sized banks on the balance sheet
setting of relevant assumptions and parameters
date with the same term as the remaining term of the forward contract, it is recognized as trading finance
assets or liabilities. During the reporting period, the actual profit and loss of forward foreign exchange
contracts of the Company was 9,569,000 yuan.
Whether the accounting policies and
accounting principles of the Company’s
derivatives in the reporting period have None
changed significantly compared with those in
the previous reporting period
Special opinions of independent directors on
derivatives investment and risk control of the None
Company
5. Usage of raised capitals
□ applicable √ not applicable
(1) Overall usage of raised capitals
√ applicable □ not applicable
45
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Unit: 1,0000 yuan
Total Cumulative
Cumulative Amount of
Total amount of proportion
total raised
amount of Total raised of total Total
Total amount of Purpose and capitals
Year of Ways of raised amount of capitals amount of amount of
amount of raised destination of which
raising raising capitals raised for change raised unused
raised capitals unused raised have been
capitals capitals used in the capitals of purpose capitals raised
capitals with capitals idle for
current used during the with capitals
changed more than
period reporting changed
purposes two years
period purposes
Temporary
replenishment
Public
and deposit in
offering of
2019 56,543.65 16,188.44 38,800.5 0 0 0.00% 17,743.15 the special 0
convertible
account for
bonds
raised
capitals
Temporary
replenishment
Non-public and deposit in
2021 offering of 103,684.71 34,539.87 34,539.87 0 0 0.00% 69,144.84 the special 0
shares account for
raised
capitals
Total -- 160,228.36 50,728.31 73,340.37 0 0 0.00% 86,887.99 -- 0
General use of raised capitals
1. Actual amount and time of arrival of funds raised
(1) Public offering of convertible corporate bonds to raise funds in 2019
The Company publicly issued 5.73 million convertible corporate bonds on March 7, 2019, each with a par value of 100 yuan, with a
total amount of 573 million yuan, through priority placement to original shareholders, offering of the balance after priority placement
to original shareholders (including the part for which the original shareholders gave up priority placement) to public investors online
through the trading system of Shenzhen Stock Exchange, and stand-by underwriting of the part with the subscription amount less
than 573 million yuan by lead underwriters with the approval in the Reply of China Securities Regulatory Commission on the
Approval of Public Offering of Convertible Corporate Bonds by Shenzhen Topband Co., Ltd. (ZJXK [2018] No.1842).Funds with a
total amount of 573,000,000.00 yuan were raised, and the net funds raised were 565,436,509.42 yuan after deduction of all the
issuance costs amounting to 7,563,490.58 yuan.
The funds arrived on March 13, 2019. Ruihua Certified Public Accountants (Special General Partnership) verified the arrival and
issued the Capital Verification Report (RHYZ [2019] No.48270001).
(2) Non-public offering of shares to raise funds in 2021
Shenzhen Topband Co., Ltd. issued 92,105,263 RMB common stocks to specific targets in private at the price of 11.40 yuan per
stock, with a par value of 1 yuan per stock, with the approval in the Reply of China Securities Regulatory Commission on the
46
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Approval of Non-public Offering of Shares by Shenzhen Topband Co., Ltd. (ZJXK [2020] No.1865). The total amount of funds
raised was 1,049,999,998.20 yuan, and the net funds actually available for use were 1,036,847,068.71 yuan after deduction of all the
issuance costs amounting to 13,152,929.49 yuan (tax-exclusive).
The funds arrived on May 10, 2021.Baker Tilly China Certified Public Accountants (Special General Partnership) verified the arrival
and issued the Capital Verification Report (TZYZ [2021] No. 29460).
2. Usage amount and balance of funds raised in 2021
(1) Use of capitals raised by public issuing of convertible bonds in 2019
As of December 31, 2021, the Company has invested 388,005,000 yuan in capital-raising projects. Among them, 361,770,100 yuan
was directly invested in the capital-raising projects, and 26,234,800 yuan was returned before the capitals were put in place. On
December 31, 2021, 150,000,000 yuan idle raised capitals have been used to temporarily supplement the working capital; as of
December 31, 2021, the balance of the raised capitals account is 33,976,600 yuan (including interest income).
(2) Non-public offering of shares to raise funds in 2021
As of December 31, 2021, the Company has invested 345,398,700 yuan in capital-raising projects. Among them, funds of 300
million yuan were used for direct and permanent replenishment of the working capital of the Company, and 45.3987 million yuan
input before the arrival of the funds raised was returned. On December 31, 2021, 690,000,000 yuan idle raised capitals have been
used to temporarily supplement the working capital; as of December 31, 2021, the balance of the raised capitals account is 1,336,400
yuan (including interest income).
(2) Situation of projects committed when raising capitals
√ applicable □ not applicable
Unit: 1,0000 yuan
Whether The
the Investment date Benefits Whether Where there
Total Total Investment Accumulated
Committed investment project progress when achieved the is any
committed investment amount in investment
projects and investment has been by the end the during expected significant
investment after this by the end of
direction of over raised changed of the project the benefits change in the
of raised adjustment reporting the period
capitals (including period is reporting are feasibility of
capitals (1) period (2)
some (3)=(2)/(1) ready period achieved the project
changes) for use
Committed investment projects
Topband East China Not
No 56,543.65 56,543.65 16,188.44 38,800.5 68.62% No
Operation Center applicable
Topband Huizhou No. 2 Not
No 73,684.71 73,684.71 4,539.87 4,539.87 6.16% No
Industrial Park Project applicable
Replenish the
Not
Company’s working No 30,000 30,000 30,000 30,000 100.00% No
applicable
capital
Subtotal of committed
-- 160,228.36 160,228.36 50,728.31 73,340.37 -- -- -- --
investment projects
Investment direction of over raised capitals
47
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
None
Total -- 160,228.36 160,228.36 50,728.31 73,340.37 -- -- 0 -- --
Situation and reason of
failing to reach the
planned progress or None
expected income (by
specific project)
Description of major
changes in project None
feasibility
Amount, use and
progress of over raised Not applicable
capitals
Change of
implementation location
Not applicable
of investment projects
with raised capitals
Adjustment of
implementation mode
Not applicable
of investment projects
with raised capitals
Applicable
1. The Company invested 26,234,800 yuan in advance in the operation center project of Topband East China with
self-raised capitals. Ruihua Certified Public Accountants (special general partnership) conducts a special audit on
the above matters, and issues the Authentication Report on the Report of Shenzhen Topband Co., Ltd. on the
Investment Projects with Self-raised Capitals in Advance (RHHZ [2019] No. 48250027). On July 25, 2019, the
25th Meeting of the 5th Board of Directors of the Company deliberated and passed the proposal on using raised
Upfront investment and capitals to replace self-raised capitals invested in advance. As of December 31, 2021, the Company has completed
replacement of the replacement of self-raised capitals invested in advance.
investment projects 2. The Company invested 45.3987 million yuan in Topband Huizhou No. 2 Industrial Park Project with self-raised
with raised capitals funds in advance. Baker Tilly China Certified Public Accountants (Special General Partnership) conducted a
special audit on the matter above, and issued the Authentication Report of Pre-investment of Shenzhen Topband
Co., Ltd. in the Investment Project of Funds Raised with Self-raised Funds (TZYZ [2021] No.31911).The 10th
meeting of the 7th Board of Directors was held to review and approve the Proposal on Replacement of Pre-invested
Self-raised Funds with Funds Raised on June 8, 2021.The Board of Supervisors, independent directors and
sponsors of the Company had all expressed their clear consent to the replacement of pre-invested self-raised funds
completed by December 31, 2021.
Temporary Applicable
replenishment of 1. On June 8, 2021, the Company held the 10th Meeting of the 7th Board of Directors, deliberated and passed the
working capital with Proposal on Temporarily Replenishing Working Capital with Some Idle Raised Capitals, and agreed that the
idle capitals raised Company should temporarily replenish working capital with no more than 950,000,000 yuan of idle capitals raised,
48
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
with a period of not more than 12 months. As of December 31, 2021, 84,000 yuan of temporary supplementary
current assets have been used.
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear
consent on the matter.
Amount and reasons of
the balance of raised
Not applicable
capitals in project
implementation
1. On June 8, 2021, the Company held the 10th Meeting of the 7th Board of Directors, deliberated and passed the
Proposal on Temporarily Replenishing Working Capital with Some Idle Raised Capitals, and agreed that the
Company should temporarily replenish working capital with no more than 950,000,000 yuan of idle capitals raised,
with a period of not more than 12 months. As of December 31, 2021, 84,000 yuan of temporary supplementary
current assets have been used.
Purpose and 2. The 10th meeting of the 7th Board of Directors was held on June 8, 2021, at which the Proposal on Increasing
whereabouts of unused the Amount of Idle Raised Funds to Buy Bank Financial Products was reviewed and approved. It was agreed to
raised capitals increase the amount of idle raised funds by no more than 850 million yuan to buy financial products. The
accumulated amount of funds that can be used to buy bank financial products totaled 1.6 billion yuan after the
increase, of which idle raised funds were not more than 1 billion yuan and idle self-owned funds not more than 0.6
billion yuan. The funds can be used on a rolling basis within the amount above. Funds of 350 million yuan for
temporary replenishment of the working capital had been used to purchase large-amount certificates of deposit by
December 31, 2021.
Problems or other
situations in the usage
None
and disclosure of raised
capitals
(3) Change of projects with raised capitals
□ applicable √ not applicable
During the reporting period, there is no change for the project with raised capitals.
VIII. Sale of major assets and equity
1. Sale of major assets
□ applicable √ not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□ applicable √ not applicable
49
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
IX. Analysis of major holding and equity participating companies
√ applicable □ not applicable
Situation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit of
the Company
Unit: Yuan
Company Company Main Registered Operating Operating
Total assets Net assets Net profit
name type business capital income profit
R&D,
production,
Shenzhen
sales,
YAKO 14.286
import and
Automation Subsidiary million 370,049,120.13 286,722,962.27 296,759,371.59 34,873,937.86 29,933,264.92
export of
Technology yuan
electronic
Co., Ltd.
parts and
components
R&D,
production,
Huizhou
sales,
Topband 300
import and
Electrical Subsidiary million 3,901,127,952.63 1,412,363,549.26 5,202,426,420.34 124,342,463.12 120,745,030.05
export of
Technology yuan
electronic
Co., Ltd.
parts and
components
R&D,
production,
sales,
Topband USD
import and
（Vietnam) Subsidiary 12.50 371,439,978.15 267,782,559.04 552,234,399.01 123,561,320.20 123,337,066.73
export of
Co.,ltd million
electronic
parts and
components
Situation of acquisition and disposal of subsidiaries during the reporting period
√ applicable □ not applicable
Method of acquisition and disposal of Impact on overall production and
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
50
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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
Shenzhen Topband Automotive Electronics No significant impact on the results of the
Newly established and acquired
Co., Ltd. Report
Huizhou Yako Automation Technology Co., No significant impact on the results of the
Newly established and acquired
Ltd. Report
No significant impact on the results of the
Q.B.PTE.LTD Newly established and acquired
Report
No significant impact on the results of the
TOPBAND MEXICO,S.DE R.L.DE C.V. Newly established and acquired
Report
TOPBAND SMART EUROPE COMPANY No significant impact on the results of the
Newly established and acquired
LIMITED S.R.L. Report
No significant impact on the results of the
TUNNU INNOVATION,INC Newly established and acquired
Report
Nantong Topband Youneng Technology No significant impact on the results of the
Newly established and acquired
Co., Ltd. Report
Description of major shareholding companies
None
X. Situation of structured entity controlled by the Company
□ applicable √ not applicable
XI. Prospects for the future development of the Company
(I) Social development trend and 2030 vision
1. Intelligence
The development of IOT, 5G, AI and other new technologies and the expansion of application fields will
open up space for growth and accelerate the process of social intelligence continuously. It is estimated that the
economic value of technological impact will exceed USD 60 trillion by 2030.We will continue to explore the
future world with innovative technologies and expand new opportunities for industry intelligence in various
51
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
application scenes in medicine, food, housing, transportation, enterprises and cities.
2. Low carbon
The climate crisis caused by greenhouse gases is deepening year by year, accelerating energy conservation
and carbon reduction in countries all over the world. It is estimated that China's accumulated investment in energy
production, energy use and ecology will reach 300 trillion yuan by 2050.We will seize the market opportunities
brought by the double carbon policy and help the world to develop with low carbon based on intelligent control
technology.
3. Multi-regional development
The global supply chain is going towards multi-regional development. It is required that R&D and product
delivery should be fast, and the quality should be reliable and stable as terminal products become more and more
complicated, individualized and differentiated. The advantages of China's industrial clusters and engineer
dividends have accelerated the trend of transfer. With the influence of international trade conflicts, the industry
has gradually shown the trend of development mainly in China and towards Vietnam, India, Indonesia and other
regions. The Company will actively expand new opportunities in many regions.
4. Short chain
The industrial chain is shortened in value and the products directly address the needs of users. The traditional
value chain is transformed into a new value chain. We will explore new opportunities with more partners and
users boldly.
Description of 2030 vision of the Company
"In 2030, the Company will provide intelligent solutions through insight into users, scenes and industry pain
points, making the world smarter and lower-carbon and greatly increasing the proportion of solution revenues.”
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.
We will seize the historical opportunity of intelligent, scene-based and green- and low-carbon development,
innovate the business model actively, realize transformation from components to products to solutions, innovate
home appliance business around "electronic control, motor, battery, power supply, Internet of Things platform and
five industries", find the blue ocean market, maintain the dominant position of tool business and the leading
market share, accelerate the development of new energy and industrial business, and achieve scale growth.
(II) Development strategy of the Company
52
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
1. Focus on strategy and sustained and effective growth
A vision blueprint for the next ten years was formulated in 2021 based on the medium-term development
goal of the Company in 2025, in which the long-term development goal in 2030 was made clear. The Company
will continue to focus on scale growth, deepen the implementation of the four strategic policies - "customer
intimacy, innovation drive, fine operation and organizational evolution", build a pyramid profit model, enhance its
leading position in global intelligent control solution providers, and achieve sustained and effective growth.
The Company will provide one-stop intelligent control solutions and services for the world’s leading brand
customers with the advantage of the “four electrics and one network” technology, and focusing on five main
businesses of the “home appliances + tools + new energy + industry + intelligent solutions”, and make good use
of the capital market platform to achieve high growth in operating income scale through a combination of
endogenous and extended methods.
2. Innovation drive and continuous enhancement of the competitiveness of technologies and products
The Company will adhere to innovation drive, maintain R&D investment continuously, strengthen basic and
cutting-edge technology research, and set up technical control points; strengthen the construction of product lines
and build more high-quality product platforms; promote the protection of intellectual assets such as patents and
trade secrets, and build technical barriers; cultivate the engine of innovation and growth, and strengthen the
cultivation of innovative talents.
It will meanwhile seize the development opportunities such as "intelligence" and "low-carbon development",
actively explore innovative services such as the Internet of Things and green commuting, consolidate and expand
the core technical capabilities of "electronic control, motor, battery, power supply and Internet of Things
platform", enhance the market and product development capabilities, and explore more high-value markets.
3. Fine operation and improvement of quality and efficiency
The Company will deepen the implementation of the fine operation strategy, optimize business processes
such as strategy, market, R&D, sales, procurement and after-sales service continuously, and improve the
end-to-end efficiency.
4. Organizational reform and continuous evolution of process-oriented organization
The Company will implement the organizational evolution strategy, strengthen the construction of talent
teams, increase the number of talents in key positions rapidly, strengthen the capacity building of middleground
and background, better empower the Iron Triangle team, and build a customer-centered process-oriented
53
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
organization.
5. Acceleration of global layout and construction of global delivery capability
The Company will continue to strengthen the customer intimacy strategy. To meet customer demands for fast
delivery and delivery with proximity, the Company has established operation centers, manufacturing centers,
R&D centers and representative offices in many places around the world based on business needs. During the
reporting period, it completed the construction of Ningbo Industrial Park, realized the rapid commissioning of the
plant in Binh Duong, Vietnam, and accelerated the construction of plants in Mexico and Romania. At the same
time, the Company has strengthened the integration of supply chain based on global layout advantages and
enhanced the local purchasing ability.
(III) Business plan for 2022
1. Realization of scale growth: The Company will continue to implement the head customer strategy, give
full play to platform advantages and increase the share of overseas plants to achieve scale growth of various
industries based on the core technology of "electronic control, motor, battery, power supply and Internet of Things
platform", and meanwhile increase the proportion of high-value products and independent and controllable
businesses;
2. Improvement of profitability: The Company will improve its full-cost efficiency, increase efficiency and
reduce costs to improve its profitability, and meanwhile improve the cash flow from operating activities through
"three reductions and one optimization", process optimization and promotion of the level of digitalization and
automation;
3. Organizational evolution: The Company will incubate BUs on a large scale, build corporate culture of a
fearless organization, strengthen the sense of mission and internal drive of all Topband employees, stimulate their
creativity and release their potential to accomplish them.
(IV) Fund demand and utilization plan
Since the Company is in the stage of rapid development, it has a huge fund demand in equipment upgrading
and capacity expansion. The Company has a good credit standing, so it is able to get strong support from the bank
in a timely manner. In 2022, taking into account its own development situation and development strategy, the
Company has raised the funds required for its development through reasonable use of various ways.
(V) Risks faced by the Company and countermeasures
1. External risks such as the macro environment
54
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
The global epidemic will still make impact on economic activities before control, and trade frictions and
geopolitical tensions will also produce adverse influences on business confidence and investment. The Company
may continue to face an uncertain external environment, so we will further strengthen risk identification and
control for various businesses and regions and adjust strategies timely to minimize external influences.
2. 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.
3. 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 hedge foreign exchange risks by conducting
RMB hedging business, international procurement and re-pricing of new product.
(4) Other risks
There are many uncertainties in the current macro environment at home and abroad, and there are some
factors that are unfavorable to the operation of the Company. For example, the Sino-US trade war, the recurrence
of COVID-19, the shortage of raw materials or the price rise, the lack of manpower and customer credit risk will
increase the uncertainty of the Company's operation.
XII. Reception, investigation, communication, interview and other activities during the
reporting period
√ applicable □ not applicable
Main contents
Type of
Time of Location of Method of of interview Index of basic information
reception Reception object
reception reception reception and materials of investigation
object
provided
Fuguo Fund Management Co., Ltd., Learn about the
2021/1/19 Conference Zhonggeng Fund Management Co., operation of the
Field
2021/1/20 room of the Organizations Ltd., Shenzhen Yitong Investment Company; no http://www.cninfo.com.cn
survey
2021/1/21 Company Co., Ltd., Wanhe Securities Co., information
Ltd. and Shenzhen Capital Fortune provided.
55
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Investment Management Co., Ltd.
HTF Fund Management Co., Ltd.,
Xingquan Fund Management Co.,
Ltd., Sinosafe Fund Management
Co., Ltd., Taiping Asset Learn about the
Management Co., Ltd., Huabao operation,
Fund Management Co., Ltd., Guotai financial
2021/1/26 Conference Telephone Asset Management Co., Ltd., situation and
2021/1/27 room of the and field Organizations Changjiang Asset Management Co., strategic http://www.cninfo.com.cn
2021/1/29 Company survey Ltd., Shanghai Panjing Investment planning of the
Management Co., Ltd., Dajia Asset Company; No
Management Co., Ltd., Bank of information
Communications Co., Ltd., New provided.
China Asset Management Co., Ltd.,
Guosheng Securities Co., Ltd. and
Tianfeng Securities Co., Ltd.
Tianfeng Securities Co., Ltd., Great
Wall Securities Co., Ltd., Zhongtai
Securities Co., Ltd., Guotai Junan
Securities Co., Ltd., China
Merchants Fund Management Co.,
Ltd., Guohai Securities Asset
Management Branch, Harvest Fund
Management Co., Ltd., HSBC
Jinxin Fund Management Co., Ltd.,
China Post Capital Fund
Management Co., Ltd., Sinowise
Learn about the
Investment Management Co., Ltd.,
operation and
Zhongrong Fund Management Co.,
Conference financial
Telephone Ltd., China CICC Wealth
2021/3/9 room of the Organizations situation of the http://www.cninfo.com.cn
survey Management Securities Co., Ltd.,
Company Company; no
GTS Fund Management Co., Ltd.,
information
Yinhua Fund Management Co.,
provided.
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
56
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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
57
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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
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.,
Learn about the
Everbright Securities Co., Ltd.,
operation,
Guangdong Yuancheng Private
financial
Equity Securities Investment Fund
Conference situation and
Telephone Co., Ltd., Guokai Securities, China
2021/3/9 room of the Organizations strategic http://www.cninfo.com.cn
survey Life AMP Asset Management Co.,
Company planning of the
Ltd., Guoxin Investment, HFT Fund
Company; no
Management Co., Ltd., Sequoia
information
Capital, Sinosafe Property
provided.
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 Management
Co., Ltd., ABC Wealth
Management, Ping An Annuity
Insurance Company of China, Ltd.,
58
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Ping An Asset Management Co.,
Ltd., Qianhai Life Insurance Co.,
Ltd., Rose Capital, Shanghai
Tongyuan Investment Co., Ltd.,
Shanghai Xinlan Investment
Management Co., Ltd., China
International Fund Management
Co., Ltd., Shenwan Hongyuan
Securities Co., Ltd., Shenzhen
Wangzheng Asset Management Co.,
Ltd., Taiping Fund Management
Co., Ltd., Taixin Fund Management
Co., Ltd., Tianhong Fund
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.
Learn about the
Proxim Hong Kong Co., Ltd.,
operation,
Haocheng Asset Management Co.,
financial
Ltd., Wanlian Securities Co., Ltd.,
Conference situation and
2021/3/10 Field Guosen Securities Co., Ltd., Huatai
room of the Organizations strategic http://www.cninfo.com.cn
2021/3/11 survey Securities Co., Ltd., ZTF Securities
Company planning of the
Co., Ltd., Wenyuan Capital
Company; no
Management Co., Ltd. and Caitong
information
Fund Management Co., Ltd.
provided.
59
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Mondrian Asset Management Co.,
Ltd., New Thinking (Hong Kong)
Investment Management Co., Ltd., Learn about the
Zongcai Investment Management operation,
Co., Ltd., Shanghai Jiuge financial
2021/3/15
Conference Telephone Investment Management Co., Ltd., situation and
2021/3/16
room of the and field Organizations Shanghai Panjing Investment strategic http://www.cninfo.com.cn
2021/3/17
Company survey Management Center, Chunhou Fund planning of the
2021/3/18
Management Co., Ltd., Anxin Company; no
Securities Co., Ltd., Huachuang information
Securities Co., Ltd., Ruiyuan Fund provided.
Management Co., Ltd. and
Industrial Securities Co., Ltd.
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 Management Co., Ltd.,
Kaifeng Investment Management Learn about the
Co., Ltd., Shenzhen Fengling operation,
Capital Management Co., Ltd., financial
Conference Wangzheng Investment situation and
Telephone
2021/4/15 room of the Organizations Management Co., Ltd., Guangdong strategic http://www.cninfo.com.cn
survey
Company Huayin Tianxia Fund Management planning of the
Co., Ltd., Shanghai Shengyu Equity Company; no
Investment Fund Management Co., information
Ltd., Everbright PGIM Fund provided.
Management Co., Ltd., Guangzhou
Yourong Equity Investment
Management Co., Ltd., Honghua
Capital Management (Shenzhen)
Co., Ltd., Furong Fund
Management Co., Ltd., Huabao
Fund Management Co., Ltd.,
Beijing Dingsa Investment Co.,
Ltd., Yihe Jiufu Investment
Management Co., Ltd., ICBC Credit
Suisse Fund Management Co., Ltd.,
60
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Tianhong Fund Management Co.,
Ltd. and Jinxiu Zhonghe (Beijing)
Capital Management Co., Ltd.
Tianfeng Securities Co., Ltd., Great
Wall Securities Co., Ltd., Tianfeng
Securities Asset Management
Branch, Xingquan Fund
Management Co., Ltd., Junhe
Capital, Harvest Fund Management
Co., Ltd., Fuguo Fund Management
Co., Ltd., China Life Asset
Management Co., Ltd., China
Merchants Fund Management Co.,
Ltd., Huatai Securities Asset
Management Department, Ruiyuan
Fund Management Co., Ltd.,
Shanghai Fosun High Technology
(Group) Co., Ltd., Sinosafe
Property Insurance Asset
Management Co., Ltd., Taikang Learn about the
Asset Management Co., Ltd., operation,
Southern Asset Management Co., financial
Conference Ltd., Bank of China Investment situation and
2021/4/26 Telephone
room of the Organizations Management Co., Ltd., Founder strategic http://www.cninfo.com.cn
2021/4/27 survey
Company Fubon Fund Management Co., Ltd., planning of the
Taiping Asset Management Co., Company; no
Ltd., Hangzhou Guangtian information
Investment Management Co., Ltd., provided.
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
61
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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., Wealth
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.,
62
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Ltd., Shenzhen Headquarters of
Huaneng Guicheng Trust Co., Ltd.,
Rosefinch Fund Management Co.,
Ltd., Asset 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.,
63
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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., Ltd.,
Harvest Fund Management Co.,
Ltd., Rongtong Fund Management
Co., Ltd., Tianhong Fund
Management Co., Ltd., EFund
management Co., Ltd., GTS Fund
Management Co., Ltd., Zhong Ou
Fund Management Co., Ltd., Dajia
Learn about the
Asset Management Co., Ltd., Fuguo
operation,
Fund Management Co., Ltd.,
financial
Shanghai Fusheng Asset
2021/5/11 Conference Telephone situation and
Management Partnership, China
2021/5/12 room of the and field Organizations strategic http://www.cninfo.com.cn
Securities Co., Ltd., Guokai
2021/5/13 Company survey planning of the
Securities Co., Ltd., Guangdong
Company; no
Hongchang Private Equity
information
Securities Investment Management
provided.
Co., Ltd., Hongta Hongtu Fund
Management Co., Ltd., Huabao
Fund Management Co., Ltd.,
Huaxia 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
64
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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 Management Co.,
Ltd., Guosheng Securities Co., Ltd.,
HFT Fund Management Co., Ltd.,
First State Cinda Fund Management Learn about the
Co., Ltd., Huatai Baoxing Fund operation,
2021/5/18 Management Co., Ltd., Shenzhen financial
Conference Field Jindou Investment Co., Ltd., situation and
2021/5/19
room of the Telephone Organizations Zhonghai Fund Management Co., strategic http://www.cninfo.com.cn
2021/5/20
Company survey Ltd., Shenzhen Qianhai planning of the
2021/5/21
Evolutionism Asset Management Company; no
Co., Ltd., Anhui Zhongjue information
Investment Management Co., Ltd., provided.
Guotai Junan Securities Co., Ltd.,
Harvest Fund Management Co.,
Ltd. and Point72 Hong Kong
Limited.
Greenwoods Asset Management,
Springs Capital (Beijing)
Investment Management Co., Ltd.,
Harvest Fund Management Co.,
Ltd., Baichuan Wealth (Beijing)
Investment Management Co., Ltd.,
Beijing Fengpei Investment
Management Co., Ltd., BlackRock
Conference Institutional Trust Co., Ltd.,
Telephone
2021/6/4 room of the Organizations Brilliance Capital Management Co.,
survey
Company 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
65
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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 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
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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.
Southern Asset Management Co.,
Ltd., Huachuang Securities Co.,
Ltd., HFT Fund Management Co.,
Ltd., Springs Capital (Beijing)
Investment Management Co., Ltd.,
Manulife Asset Management Hong
Kong Co., Ltd., Sinosafe Property
Insurance Co., Ltd., Fuguo Fund
Management Co., Ltd., Shenzhen
Kaifeng Investment Management
Co., Ltd., CITIC Prudential Life
Learn about the
Insurance Co., Ltd., Maxwealth
operation,
Fund Management Co., Ltd.,
financial
Everbright Securities Co., Ltd.,
Conference Field and situation and
2021/6/8 CPIC Fund Management Co., Ltd.,
room of the telephone Organizations strategic http://www.cninfo.com.cn
2021/6/9 Manulife Asset Management
Company survey planning of the
(Thailand) Co,Ltd, Point72 asset
Company; no
management, Ruiyuan Fund
information
Management Co., Ltd.,
provided.
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., Learn about the
Anhui Conch Venture Capital Co., operation,
Conference
2021/6/24 Telephone Ltd., Anhui Mingze Investment financial
room of the Organizations http://www.cninfo.com.cn
2021/6/25 survey Management Co., Ltd., Baoer situation and
Company
Taiping Co., Ltd., PKU Founder strategic
Life Asset Management Center, planning of the
67
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Beijing Fengpei Investment Company; no
Management Co., Ltd., Beijing information
Hongcheng Investment provided.
Management Co., Ltd., Beijing
Xingshi Investment Management
Co., Ltd., Caitong Securities Asset
Management Co., Ltd., Dajia Asset
Management Co., Ltd., Topsperity
Securities Co., Ltd., Northeast
Securities Co., Ltd., Oriental Alpha
Fund Management Co., Ltd., Orient
Fund Management Co., Ltd., Orient
Securities Co., Ltd., ICBC Credit
Suisse Fund Management Co., Ltd.,
Everbright PGIM Fund
Management Co., Ltd., Everbright
Securities Asset 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
68
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
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 Tongben 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.,
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Full text of Annual Report 2021 of Shenzhen Topband 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.
Tianfeng Securities Co., Ltd., Fuguo
Fund Management Co., Ltd.,
Xingquan Fund Management Co.,
Ltd., Harvest Fund Management
Co., Ltd., Huatai-PineBridge
Investments Management Co., Ltd.,
CITIC Securities Asset
Management Department, Wealth
Management Subsidiary of
Agricultural Bank of China, Loyal
Valley Capital Co., Ltd., China
Merchants Securities Asset
Management Co., Ltd., Changjiang
Endowment Insurance Co., Ltd.,
Changan Funds Management Co., Learn about the
Ltd., GTS Fund Management Co., operation,
2021/7/27 Ltd., Yinhua Fund Management financial
Conference Field and Co., Ltd., Yihe Jiufu Investment situation and
2021/7/28
room of the telephone Organizations Management Co., Ltd., Industrial strategic http://www.cninfo.com.cn
2021/7/29
Company survey Securities Co., Ltd., Southwest planning of the
2021/7/30
Securities Investment Department, Company; no
Taiping Asset Management Co., information
Ltd., Taiping Fund Management provided.
Co., Ltd., Sichuan Jinduo
Investment Co., Ltd., Simu
Gongchang Siyuan No.1 Securities
Investment Funds, Shenzhen Xishan
Capital Management Co., Ltd.,
Shenzhen Wangzheng Asset
Management Co., Ltd., Shenzhen
Yitong Investment Management
Co., Ltd., Shenzhen Jinzhihao Fund
Management Co., Ltd., Shenzhen
Guanghuiyuan Asset Management
Co., Ltd., Shenzhen Fengling
Capital Management Co., Ltd.,
SWS MU Fund Management Co.,
70
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Ltd., China International Fund
Management Co., Ltd., Shanghai
Xingrang Asset Management Center
(Limited Partnership), Shanghai
Tongyuan Investment Development
Co., Ltd., Shanghai Jujing
Investment Co., Ltd., Shanghai
Chaos Investment Co., Ltd.,
Rongtong Fund Management Co.,
Ltd., Qingdao Yinsheng Asset
Management Co., Ltd., Qingdao
Luoji Fund Management Co., Ltd.,
AXA SPDB Fund Management Co.,
Ltd., Ningbo Liansheng Investment
Co., Ltd., Southern Asset
Management Co., Ltd., Greenland
Finance Holding Group, Sinosafe
Property Insurance Asset
Management Co., Ltd., Hunan
Yuancheng Investment Management
Co., Ltd., Guoxin Investment Co.,
Ltd., SDIC UBS Fund Management
Co., Ltd., Guangzhou Jinkong Asset
Management Co., Ltd., Granford
Capital Management Co., Ltd.,
Sunrise Asset Management Co.,
Ltd., Perseverance Asset
Management Co., Ltd., Founder
Fubon Fund Management Co., Ltd.,
TruValue Asset Management Co.,
Ltd., Ivy Shanghai Assets
Management Co., Ltd., Brilliance
Capital Management Co., Ltd.,
Beijing Kendall Square Capital
Management Co., Ltd., Beijing
Dingsa Investment Co., Ltd., Anxin
Fund Management Co., Ltd.,
Vontobel Asset Management Asia
Pacific Limited, TX Capital Rays
Capital, BlackRock Asset
Management Co., Ltd., Bosheng
Investment Holding Group Co.,
Ltd., Orient Capital Management
Co., Ltd., Shenzhen Yitong
71
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Investment Co., Ltd.;
China Securities Co., Ltd., Zhongtai
Securities Co., Ltd., China CICC
Wealth Management Securities Co.,
Ltd., CICC Capital Operation Co.,
Ltd., Guosen Securities Co., Ltd.,
Harvest Fund Management Co.,
Ltd., Fuguo Fund Management Co.,
Ltd., Point72, First State Cinda
Fund Management Co., Ltd., Dalian
Tonghe Investment Co., Ltd., Hony
Capital Co., Ltd., Guotai Asset
Management Co., Ltd., Yude
Investment Co., Ltd., Beijing
Shitianfeng Investment
Management Co., Ltd., Guhe Asset
Management Co., Ltd., Fosun Asset
Management Co., Ltd., Dalian
Tonghe Investment Co., Ltd.,
Guosheng Securities Co., Ltd.,
Tengyue Capital Management Co.,
Ltd., Changan Fund Management
Co., Ltd., Shenwan Hongyuan
Securities Co., Ltd., Guotai Junan
Securities Co., Ltd., Hengsheng
Fund Management Co., Ltd., Guojin
Securities Co., Ltd., Shenzhen
Gentai Investment Management
Co., Ltd., Orient Securities Co.,
Ltd., Zheshang Securities Co., Ltd.,
Nightyone, Manulife, Guoyuan
Securities Co., Ltd., Haitong Asset
Management Co., Ltd., Shanghai
Trust Bridge Partners Management
Co., Ltd., Hongta Securities Co.,
Ltd., Jiulong Asset Management
Co., Ltd., Fulida Fund Management
(Zhuhai) Co., Ltd., China Asset
Management Co., Ltd., Changxin
Asset Management Co., Ltd.,
Shanghai Panjing Investment
Management Co., Ltd., Bosera
Funds Management Co., Ltd., CPIC
Fund Management Co., Ltd., HTF
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Fund Management Co., Ltd.,
Yinhua Fund Management Co.,
Ltd., China Merchants Securities
Co., Ltd., Shenzhen Wukong
Investment Management Co., Ltd.
Learn about the
China Asset Management Co., Ltd., operation,
China CICC Wealth Management financial
Conference Field and Securities Co., Ltd., Credit Suisse situation and
2021/9/7
room of the telephone Organizations (Hong Kong) Co., Ltd., Fuda Fund strategic http://www.cninfo.com.cn
2021/9/9
Company survey Management (China) Co., Ltd., planning of the
BlackRock Fund Management Co., Company; no
Ltd. information
provided.
Tianfeng Securities, Harvest Fund,
Xingquan Fund, Zhonggeng Fund,
BlackRock Fund Management, HFT
Fund Management, SDIC UBS
Fund, Bosera Funds, Taikang Asset
Management, First State Cinda
Fund, BOC Fund, Ping An Annuity
Insurance, Hillhouse Investment,
EFund, Southern Asset, BOCOM
Schroders Fund, Deppon
Self-operated, ABC Wealth
Learn about the
Management, Ningbo Liansheng
operation,
Investment, Rongtong Fund,
financial
Caitong Fund, Huaneng Guicheng
2021/9/21 Conference Field and situation and
Trust, Hengtou Securities, CITIC
2021/9/22 room of the telephone Organizations strategic http://www.cninfo.com.cn
Securities, Haizhengsong
2021/9/23 Company survey planning of the
Investment; PICC, Zhongshan
Company; no
Securities, Baixi Private Equity
information
Fund Management, Shanghai
provided.
Dazheng Investment, Nanjing
Double-Safeguard Asset
Management, AXA SPDB Fund,
Shenzhen Wangzheng Asset
Management, Orient Fund, Zhejiang
Minong Investment, Anxin Fund,
Shanghai Jinyin Investment,
Founder Fubon Fund, China Life
AMP Asset, New China Pension,
Guotai Junan Securities, Shanghai
Hehe, Changjun Capital, Orient
73
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Jiafu (Ningbo) Asset Management,
Guoxin Investment, Dantai Capital
Limited.New China Fund, Orient
Securities, Western Securities, Jiutai
Fund, Qianhai Taihang Capital
Management, Oriental Alpha Fund,
Rongtong Fund, Anhui Conch
Venture Capital, Hotland
Innovation, Prudential Fund, Ren
Bridge (Beijing) Asset
Management, Yongan Insurance,
Infore Capital, Shanghai Chaos
Investment.
Huachuang Securities, Huatai
Pine-Bridge Investments, New
China Fund, Lion Fund, Efund,
Ping An Fund, China International
Fund, Golden Eagle Fund, Furong
Fund Management, Shanghai
Panhou Investment, Southern Asset,
Beijing Fengpei Investment,
Qianhai Alliance Asset
Management, Essence Fund,
Minsheng Royal Fund, Harvest
Fund, Orient Securities, Western
Securities, Zheshang Securities,
Jiutai Fund, Qianhai Taihang
Capital Management, Oriental
Alpha Fund, Rongtong Fund, Anhui
Conch Venture Capital, Hotland
Innovation, Prudential Fund,
Sangeng Asset Management, Ren
Bridge (Beijing) Asset
Management, Yongan Insurance,
Infore Capital Management, Fosun
Asset Management, Chaos
Investment, Yinhua Fund, Deppon
Securities, Shenzhen Hechuang
Asset Management, Everbright
Securities, Shanghai Changjian
Investment, CPIC Fund, Huatai
Securities, Zhongrong International
Trust, Huatai Pine-Bridge
Investments, Anxin Fund, BOC
74
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
International Securities, Southern
Asset, Sinosafe Fund, Shanghai
Gaoyi Asset Management, Ningbo
Huanfang Quantitative Investment
Management, TruValue Asset
Management, China Merchants
Securities, Industrial Securities,
Shanghai Securities, Beijing
Zundao Asset Management, Taiping
Asset Management, ABC Wealth
Management, Shenwan Asset
Management, Beijing Hongcheng
Investment, Mingya Fund, Shanghai
Fusheng Asset Management, CICC
Fund, Bank of China Investment
Management Co., Ltd., Guohai
Securities, Generali China Asset
Management, Yinhua Fund, China
Life Endowment Insurance, PKU
Founder Life Management, Beijing
Zundao Asset Management,
Universal Wisdom Investment,
Huatai Baoxing, Shanghai
Tongyuan Investment, Shenzhen
Yujin Fund, Shanghai Panjing
Investment, Dajia Asset
Management, Shanda Capital,
Efund, Hotland Innovation, Nuode
Fund.
Zheshang Securities: ICBC Credit
Suisse Fund, Shenzhen Happy Time
Fund.
CITIC Securities: Neuberger
Berman
Citi Orient Securities: Harvest
Learn about the
Fund, AIA Insurance, Guotai
operation,
Securities Investment Trust
financial
Company, Fangying Yanjiuxing
Conference Field and situation and
2021/9/27 Investment, Houhua Investment
room of the telephone Organizations strategic http://www.cninfo.com.cn
2021/9/30 Trust Asset Management, Green
Company survey planning of the
Court Capital Management,
Company; no
Matthews International Capital
information
Management, Yingde Gases Group,
provided.
Power Corporation of Canada.
75
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Deppon Securities: Shanghai Fosun
Technology.
Guosen Securities: Fenghe Asia.
Learn about the
operation,
financial
Conference situation and
2021/10/14 Field Huachuang Securities, HTF Fund,
room of the Organizations strategic http://www.cninfo.com.cn
2021/10/15 survey Yinhua Fund, China Post Fund.
Company planning of the
Company; no
information
provided.
Tianfeng Securities, Zhongtai
Securities, Guosen Securities,
CITIC Securities, Everbright
Securities, CICC Securities,
Huachuang Securities, Guotai Junan
Securities, Shenwan Hongyuan
Securities, Changjiang Securities,
Guosheng Securities, CMB Wealth
Management, BlackRock Fund,
HTF Fund, Xingquan Fund, Harvest
Fund, Harvest Fund, HFT Fund,
Yinhua Fund, Ping An Fund, Learn about the
Baichuang Capital, Fuguo Fund, operation,
Chang An Fund, Southern Asset, financial
Conference Field Baoying Fund, Huatai-PineBridge, situation and
2021/10/27
room of the telephone Organizations Guotai Asset Management, China strategic http://www.cninfo.com.cn
2021/10/28
Company survey International Fund, Hongta Hongtu planning of the
Fund, Hotland Innovation Fund, Company; no
Lion Fund, Greenwoods Asset, information
Maoding Asset, Vontobel Fund, provided.
Jinda Investment, Value Investment,
Guhe Asset, Bosera Funds, Deppon
Securities, Beixin Ruifeng,
Rongtong Fund, Lubao Investment,
Dacheng Fund, CCB Principal
Asset, Fosun Asset Management,
Qianhai Kaiyuan Fund, Shenzhen
Fengling Capital, Shanghai
Yongjian Asset Management, Tibet
Yuancheng Asset Management,
Xinyang Fund, Cigna CMB Asset
76
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Management, Shenzhen Ruifu Asset
Management, Shanghai Universal
Wisdom Investment, Shouyuan
Investment, Lingze Capital,
Founder Fubon Fund, Panjing
Investment, Cephei Capital, First
State Cinda Fund, Jiangsu Ruihua
Investment, Panhou Dynamic
(Shanghai) Capital Management,
DH Fund Management, Jiutai Fund,
Foresight Fund, Tengyue
Fund.China Securities, Ping An
Annuity, Ping An Fund, Wanjia
Asset, Springs Capital, Pacific Asset
Management, BOCOM Schroders
Fund, Huabao Fund, Oriental Alpha
Fund, Xinyuan Asset Management,
HFT Fund, GTS Fund, Rongtong
Fund, CPIC Fund, Industrial
Securities, Guotai Junan Securities,
Shenwan Hongyuan Securities.
Learn about the
operation,
financial
Conference Yongan Guofu, Orient Securities situation and
Field
2021/11/12 room of the Organizations Asset Management, Lead Wolf strategic http://www.cninfo.com.cn
survey
Company Fund, Ruiyuan Fund planning of the
Company; no
information
provided.
77
Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Section IV Corporate Governance
I. Basic situation of corporate governance
Since its listing, the Company has revised the Articles of association, the Rules of Procedure of the General
Meeting of Shareholders, the Rules of Procedure of the Board of Directors and the Rules of Procedure of the
Board of Supervisors and established a series of corporate governance systems such as the Management System of
Raised Funds and the Management System of Public Information Disclosure in strict accordance with the
requirements of relevant laws and regulations such as the Company Law, the Securities Law, the Code on the
Governance of Listed Companies, the Guidelines for the Articles of Association of Listed Companies and the
Stock Listing Rules of Shenzhen Stock Exchange. During the reporting period, the corporate governance was in
line with the requirements of the Code on the Governance of Listed Companies and other normative documents on
corporate governance issued by the CSRC.
1. About shareholders and the General Meeting of Shareholders: The Company has convened and held the
General Meeting of Shareholders in strict accordance with the provisions and requirements of the Rules of
Procedure of the General Meeting of shareholders and the Normative Opinions of the General Meeting of
Shareholders of the Listed Company, so as to ensure that all shareholders, especially minority shareholders can
enjoy equal status and fully exercise their rights.
2. The relationship between the controlling shareholder and the listed company: The controlling shareholder
regulates his behavior in strict accordance with the Code on the Governance of Listed Companies and the Articles
of Association, and is able to exercise his rights and assume corresponding obligations according to law. The
controlling shareholder of the Company is an individual who does not have other investment projects and does not
directly or indirectly interfere with the Company's decision-making and business activities beyond the General
Meeting of Shareholders. The Board of Directors, the Board of Supervisors and the corresponding departments of
the Company can operate normally and have independence.
3. About directors and the Board of Directors: All the directors of the Company can carry out work in
accordance with the Rules of Procedure of the Board of Directors, the Independent Director System, and the
Guidelines on the Conduct of Directors of Listed Companies in the SME Board, attend relevant meetings seriously,
actively participate in training, and be familiar with relevant laws and regulations. The Company elects directors
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
in strict accordance with the recruitment procedures prescribed in the Articles of Association. At present, the
Company has 3 independent directors and 6 non-independent directors. The composition of the Board of Directors
complies with the requirements of laws and regulations and the Articles of Association.
4. Supervisors and the Board of Supervisors: The Board of Supervisors is formed in strict accordance with
relevant provisions of the Company Law and the Articles of Association. The Company's supervisors can, in
accordance with the Rules of Procedure of the Board of Supervisors, conscientiously perform their duties,
supervise the legality and compliance of the Company's financial status and major matters in good faith and
responsibly, and safeguard the legitimate rights and interests of the Company and its shareholders.
5. Performance evaluation and incentive and restraint mechanisms: The Company has established a series of
performance evaluation and incentive and restraint mechanisms, and the appointment of senior executives is open
and transparent and complies with the requirements of relevant laws and regulations.
6. Relevant stakeholders: The Company can fully respect and safeguard the legitimate rights and interests of
relevant stakeholders, and actively cooperate with stakeholders to jointly promote the sustainable and healthy
development of the Company.
7. Information disclosure and transparency: The Company conscientiously performs the obligation of
information disclosure in accordance with relevant laws and regulations such as the Articles of Association, the
Stock Listing Rules of Shenzhen Stock Exchange, and the Company Information Disclosure System. The Company
designates Securities Times and www.cninfo.com.cn as the newspaper and website for its information disclosure,
and ensures the timeliness and accuracy of its information disclosure.
Is there any significant difference between the actual situation of corporate governance and laws, administrative
regulations and the regulations on corporate governance of listed companies issued by China Securities
Regulatory Commission?
□ Yes √ No
No.
II. The independence of the Company from the controlling shareholder and actual controller
in terms of ensuring the Company's assets, personnel, finance, organization, business, etc.
The controlling shareholder of the Company is a natural person, and the controlling shareholder has no other
investment. The Company and the controlling shareholder are completely separated in terms of business,
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personnel, assets, finance, etc. The Company has stable production and operation, and can operate independently
and normatively.
1. Independent business: The business of the Company is independent from the controlling shareholder, with
a complete and independent production, supply and marketing system, and is not dependent on shareholders or
any other related parties.
2. Personnel independence: The Company has an independent staff team, and has established a sound
personnel management system. The Company's chairman, general manager, deputy general managers, board
secretary, chief financial officer and other senior executives work full-time in the Company and receive
remuneration. They have not held any positions except directors and supervisors in the shareholder units holding
more than 5% of the shares of the Company and their subordinate enterprises, or held any positions in other
enterprises with the same or similar business as the Company. Personnel management is independent.
3. Independent assets: The Company has independent production and operation sites, production systems,
supporting facilities, land use rights and house ownership, which are not shared with the controlling shareholder.
4. Institutional independence: The Company has set up a sound organizational system and can operate
independently. There is no subordinate relationship with the controlling shareholder.
5. Financial independence: The Company has set up an independent financial accounting department and
established an independent accounting system and financial management system, and carries out independent
financial operations under the requirements of relevant accounting systems. The Company has separate bank
accounts, and conducts independent tax declaration and performs payment obligations according to law.
III. Competition in the same industry
□ applicable √ not applicable
IV. Information on the annual and extraordinary general meetings of shareholders held
during the reporting period
1. Information on the General Meeting of Shareholders during the reporting period
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Investor
Meeting
Meeting type participation Meeting date Date of disclosure Meeting resolution
session
ratio
1. Reviewed and approved the Proposal on
2020 Annual Report and Summary; 2.
Reviewed and approved the Proposal on
2020 Final Financial Report; 3. Reviewed
and approved the Proposal on 2020 Profit
Distribution Plan; 4. Reviewed and
approved the Proposal on 2020 Work Report
of the Board of Directors; 5. Reviewed and
approved the Proposal on 2020 Work Report
of the Board of Supervisors; 6. Reviewed and
approved the Proposal on Remuneration of
Company Directors in 2020; 7. Reviewed
and approved the Proposal on Remuneration
2020 Annual
Annual General of Company Supervisors in 2020; 8.
General
Meeting of 26.49% March 30, 2021 March 31, 2021 Reviewed and approved the Proposal on
Meeting of
Shareholders Application for Comprehensive Credit Line
Shareholders
from Banks by the Company and Its
Subsidiaries in 2021; 9. Reviewed and
approved the Proposal on Renewing the
Employment of Audit Institution in 2021; 10.
Reviewed and approved the Proposal on
Increasing the Registered Capital of the
Company; 11. Reviewed and approved the
Proposal on Changing Business Scope of the
Company; 12. Reviewed and approved the
Proposal on Amendment of the Articles of
Association; 13. Reviewed and approved the
Proposal on By-election of Independent
Directors of the Company.
1. Reviewed and approved the Proposal on
Extending the Validity Period of the
First Resolution of the Shareholders' Meeting for
Extraordinary Extraordinary Non-public Offering of Stocks of the
General General Company in 2020; 2. Reviewed and
28.12% May 10, 2021 May 11, 2021
Meeting of Meeting of approved the Proposal on Requesting the
Shareholders Shareholders Shareholders' Meeting to Extend the Validity
in 2021 Period of Authorization to the Board of
Directors of the Company for Handling
Matters Related to the 2020 Non-public
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Offering of Stocks.
1. Reviewed and approved the Proposal on
the Company's 2021 Restricted Stock
Incentive Plan (Draft) and Its Summary; 2.
Reviewed and approved the Proposal on
Administrative Measures for the
Implementation and Evaluation of the
Second
Company's 2021 Restricted Stock Incentive
Extraordinary Extraordinary
Plan; 3. Reviewed and approved the
General General November 1,
37.85% November 2, 2021 Proposal on Requesting the Shareholders'
Meeting of Meeting of 2021
Meeting to Authorize the Board of Directors
Shareholders Shareholders
to Handle Matters Related to the Company's
in 2021
2021 Restricted Stock Incentive Plan; 4.
Reviewed and approved the Proposal on
Increasing the Registered Capital of the
Company; 5. Reviewed and approved the
Proposal on Amendment of the Articles of
Association.
Third
Extraordinary Extraordinary Reviewed and approved the Proposal on
General General December 27, Foreign Investment of and Signing of
31.92% December 28, 2021
Meeting of Meeting of 2021 Investment Agreement by Wholly Owned
Shareholders Shareholders Subsidiaries
in 2021
2. The preferred shareholders with restored voting rights request to convene an Extraordinary General
Meeting of Shareholders
□ applicable √ not applicable
V. Information of directors, supervisors and senior management
1. Overview
Number Numb
Number of of er of
Number Number of Reasons
shares held addition shares
of shares held for
Commencem Terminati at the al reduce Other
Position Gend Ag Stock restricte at the end increase
Name Position ent date of on date of beginning shares d in changes
status er e option d shares of the or
tenure tenure of the held in the (shares)
granted period decrease
period the curren
(shares) (shares) of shares
(shares) current t
period period
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(shares) (share
s)
Wu Chairman Not
2023/9/1 212,008,71 212,008,71
Yongqia of the Incumbent Male 57 2011/8/29 0 0 0 0 0 applicab
3 5 5
ng Board le
Not
Ji 2023/9/1
Director Incumbent Male 60 2011/8/29 27,318,642 0 0 0 0 0 27,318,642 applicab
Shuhai 3
le
The
second
exercise
period of
stock
options
in 2018
met the
exercise
Director
conditio
and
Zheng 2023/9/1 ns, and
deputy Incumbent Male 56 2011/8/29 5,243,970 240,000 533,000 0 0 773,000 6,016,970
Sibin 3 restricte
general
d shares
manager
were
granted
accordin
g to the
restricte
d stock
incentiv
e plan in
2021.
The
second
exercise
period of
Director stock
and options
2023/9/1
Ma Wei deputy Incumbent Male 47 2011/8/29 7,634,934 300,000 616,000 0 0 916,000 8,550,934 in 2018
3
general met the
manager exercise
conditio
ns, and
restricte
d shares
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
were
granted
accordin
g to the
restricte
d stock
incentiv
e plan in
2021.
The
second
exercise
period of
stock
options
in 2018
met the
exercise
conditio
Peng
2023/9/1 ns, and
Ganqua Director Incumbent Male 50 2011/8/29 3,896,900 360,000 400,000 0 0 760,000 4,656,900
3 restricte
n
d shares
were
granted
accordin
g to the
restricte
d stock
incentiv
e plan in
2021.
Not
Wu 2023/9/1
Director Incumbent Male 38 2014/9/12 00 0 0 0 0 0 applicab
Hang 3
le
Independ Not
Huang 2023/9/1
ent Incumbent Male 64 2020/9/14 00 0 0 0 0 0 applicab
Yuegang 3
Director le
Independ Not
Hua Fema 2023/9/1
ent Incumbent 44 2017/9/09 00 0 0 0 0 0 applicab
Xiuping le 3
Director le
Li Independ 2023/9/1 Not
Incumbent Male 56 2021/3/31 00 0 0 0 0 0
Xumeng ent 3 applicab
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Director le
Independ Appointm Not
2021/3/3
Shi Yun ent ent and Male 44 2017/9/09 00 0 0 0 0 0 applicab
1
Director removal le
The
second
exercise
period of
stock
options
in 2018
Deputy met the
General exercise
Manager conditio
Wen and Fema 2023/9/1 ns, and
Incumbent 48 2011/8/29 2,108,127 180,000 183,000 60,000 0 363,000 2,531,127
Zhaohui Secretary le 3 restricte
of the d shares
Board of were
Directors granted
accordin
g to the
restricte
d stock
incentiv
e plan in
2021.
The
second
exercise
period of
stock
options
in 2018
Finance met the
Xiang 2023/9/1
Chief Incumbent Male 45 2019/1/10 301,500 120,000 183,000 0 0 303,000 604,500 exercise
Wei 3
Director conditio
ns, and
restricte
d shares
were
granted
accordin
g to the
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restricte
d stock
incentiv
e plan in
2021.
Not
Dai Superviso Fema 2023/9/1
Incumbent 46 2011/8/29 319,612 0 0 0 0 0 319,612 applicab
Huijuan r le 3
le
Not
Kang Superviso 2023/9/1
Incumbent Male 38 2014/8/21 00 0 0 0 0 0 applicab
Weiquan r 3
le
Not
Chen Superviso 2023/9/1
Incumbent Male 44 2017/2/15 00 0 0 0 0 0 applicab
Jinzhou r 3
le
258,832,4 1,200,0 1,915,0 3,115,0 262,007,4
Total -- -- -- -- -- -- 60,000 0 --
00 00 00 00 00
Whether there is any demission of directors and supervisors and dismissal of senior management during the term
of office in the reporting period
√ Yes □ No
Mr. Shi Yun applied to resign as an independent director of the seventh Board of Directors of the Company
for personal reasons on March 31, 2021. The Company has completed the by-election of independent directors.
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
2. Employment status
Professional background and main work experience of the Company's current directors, supervisors and senior
executives and their main responsibilities in the Company
(1) Members of the Board of Directors
Wu Yongqiang, male, born in 1965, holds a master's degree and has no right of permanent residence abroad.
He is a local leading talent recognized by Shenzhen City. He has won the titles "Shenzhen Young Science and
Technology Leader" awarded by Shenzhen Municipal Government and "Top Ten Outstanding Young People" in
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Nanshan District, Shenzhen. He served successively as lecturer of Harbin Institute of Technology and vice
chairman of the Company. Now he serves as chairman of the Board of Directors of the Company, chairman of the
Board of Directors of Shenzhen Topband Software Technology Co., Ltd., executive director of Shenzhen
Topband Battery Co., Ltd., executive (managing) director of Shenzhen Hongru Investment Management Co., Ltd.,
partner of Shenzhen Hongru Investment Enterprise (Limited Partnership), executive director of Shenzhen Yankai
Electric Technology Co., Ltd., executive director and general manager of Ningbo Topband Intelligent Control Co.,
Ltd., and director of Topband (Hong Kong) Co., Ltd.
Zheng Sibin: Male, born in 1966, master's degree, certified public accountant. He has no right of permanent
residence abroad. He served successively as office director and deputy factory director of Zhejiang Songyang
Brewery, financial supervisor of Nantai Electronics (Shenzhen) Co., Ltd., and manager and chief financial officer
of the financial department of the Company. Now he serves as director, deputy general manager and general
manager of the business unit of the Company, supervisor of Shenzhen Topband Software Technology Co., Ltd.
and supervisor of Chongqing Topband Industrial Co., Ltd.
Ma Wei: Male, born in 1974. He holds a bachelor's degree and has no right of permanent residence abroad.
He served successively as technical development engineer of Shenzhen Huafa Electronics Co., Ltd., technical
development engineer and general manager of the Company. Now he serves as director, deputy general manager
and general manager of the business unit of the Company.
Ji Shuhai: Male, born in 1962, master's degree, senior engineer. He has no right of permanent residence
abroad. He served successively as engineer of Guangzhou Wanbao Electrical Appliance Group Company and
chairman and general manager of the Company. Now he serves as director and general manager of Shenzhen
Shuofang Precision Machinery Co., Ltd.
Peng Ganquan: Male, born in 1972, master's degree. He has no right of permanent residence abroad. He
served successively as engineer of Hunan Instrument and Meter General Factory, development engineer, technical
director and deputy general manager of the electrical business unit of the Company. Now he serves as director of
the Company, general manager and executive director of Shenzhen Allied Control System Co., Ltd., and director
of Topband India Private Limited.
Wu Hang: Male, born in 1984, master's degree. He has no right of permanent residence abroad; He once
serves as design conversion engineer of Shenzhen Mindray Bio-Medical Electronics Co., Ltd. Now he serves as
director of the Company.
Huang Yuegang: Male, born in October 1958, graduated from Jilin University of Finance and Economics
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with a bachelor's degree, senior accountant. He once served as deputy director of the office and deputy director of
the Publicity Department of the Party Committee at Jilin University of Finance and Economics, chief financial
officer of Shenzhen Far East Hotel Co., Ltd., credit director of Shenzhen Branch of Guangfa Bank, president of
Zhenhua Road Sub-branch, executive president of Shenzhen Golden Lighting (Group) Co., Ltd., chairman of
Dalian Changxing Industrial Co., Ltd., deputy general manager of Tianjin Guangxia Real Estate Development Co.,
Ltd., deputy general manager of Shenzhen Zhongnan Hotel (Group) Management Co., Ltd. and president of
Shenzhen Binji Industrial Group Co., Ltd. He is currently an independent director of Guizhou Tyre Co., Ltd. and
Shenzhen Aoya Design Co., Ltd.
Hua Xiuping: Female, born in 1978, Ph.D. She has no right of permanent residence abroad. She served
successively as researcher of China Finance Forty Forum, visiting scholar of School of Oriental and African
Studies, University of London funded by British Academy of Sciences, guest editor of European Finance Journal,
part-time vice president and partner of Junrun Capital. She is currently an independent director of the Company,
professor of finance and doctoral supervisor in Nottingham University Business School (China), and an
independent director of the Bank of Dongguan Co., Ltd., Ningbo Fubang Jingyi Group Co., Ltd. and Ningbo
Yuyao Rural Commercial Bank Co., Ltd.
Li Xumeng: Male, born in 1966, Chinese nationality, no permanent residence abroad, Ph.D. in business
management. He served as a consultant in Beijing Shangheng Zhiben Management Consulting Co., Ltd. and
Shanghai Danfu Business Consulting Center. He is currently a researcher at Zhuoyuehui Innovation Development
(Shenzhen) Co., Ltd.
(2) Members of the Board of Supervisors
Dai Huijuan: Dai Huijuan, female, born in 1976. She holds a bachelor's degree and has no right of
permanent residence abroad. She served successively as supervisor and manager of the Company's human
resources department. Now she serves as chairwoman of the Board of Supervisors and director of the human
resources center at the Company, director and general manager of Huizhou Topband Electrical Technology Co.,
Ltd., partner of Shenzhen Hongru Investment Enterprise (Limited Partnership), and executive director and
manager of Huizhou Topband New Energy Co., Ltd.
Chen Jinzhou: Male, born in 1978, permanent resident of Hong Kong, China, and doctor of The Chinese
University of Hong Kong. He served successively as electronic engineer of Hong Kong Productivity Council,
senior researcher of Beijing Noitom Technology Co., Ltd., and senior chief engineer of Johnson Electric. Now he
serves as deputy general manager of the microelectronics business unit of the Company and supervisor of the
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board of supervisors of the Company.
Kang Weiquan, male, born in 1984, bachelor's degree. He has no right of permanent residence abroad. He
once served as cost accountant of Shenzhen Yihe Precision Industry Holding Co., Ltd. Now he serves as cost
accountant and employee representative supervisor at the Company.
(3) Senior executives
Wu Yongqiang, general manager. See the resumes of the members of the Board of Directors.
Zheng Sibin, deputy general manager. See the resumes of the members of the Board of Directors.
Ma Wei, deputy general manager. See the resumes of the members of the Board of Directors.
Wen Zhaohui: Female, born in 1974, bachelor's degree, accountant. She has no right of permanent
residence abroad. She served successively as supervisor of the financial department and manager and chief
financial officer of the financial department at Shenzhen Topband Co., Ltd., director of Shenzhen Dynanonic Co.,
Ltd., and director of Shenzhen Zhongzhi Yingke Electric Technology Co., Ltd. Now she serves as deputy general
manager, secretary of the Board of Directors of the Company and director of Shenzhen Yuchengxin Power
Technology Co., Ltd.Ms. Wen Zhaohui has been honored as "New Fortune Golden Secretary" for five consecutive
years. She won the titles of "Excellent Secretary" awarded by Shenzhen Securities Regulatory Bureau and
"Securities Times Top 100 Board Secretaries" in 2015, 2016 and 2017, and was selected into "New Fortune Hall
of Fame of Golden Secretaries in 2019".
Xiang Wei: male, born in 1977, bachelor's degree, senior management accountant and international
accountant. He has no right of permanent residence abroad. He served successively as chief accountant of North
China Aluminum Co., Ltd., accounting officer and subsidiary financial manager of Yiyang Jewelry Industry Co.,
Ltd., and deputy financial manager and financial manager of Shenzhen Topband Co., Ltd. Now he serves as chief
financial officer of the Company.
Positions in the shareholders' units
□ applicable √ not applicable
Positions in other units
√ applicable □ not applicable
Are remuneration
Positions held
Commencement Termination and allowances
Name of staff Names of other companies in other
date of tenure date of tenure received from
companies
other companies
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Shenzhen Topband Software Technology Executive
Wu Yongqiang September 18, 2014 No
Co., Ltd. director
Executive
director and
Wu Yongqiang Shenzhen Topband Battery Co., Ltd. April 29, 2009 No
general
manager
Executive
Shenzhen Hongru Investment Management
Wu Yongqiang (Managing) August 20, 2015 No
Co. Ltd.
Director
Shenzhen Hongru Investment Enterprise
Wu Yongqiang Partner September 2, 2015 No
(Limited Partnership)
Executive
Shenzhen Topband Suzhou Intelligent director and
Wu Yongqiang February 7, 2017 No
Technology Co., Ltd. general
manager
Shenzhen YAKO Automation Technology Chairman of
Wu Yongqiang December 24, 2022 No
Co., Ltd. the Board
Shenzhen Topband Automation Technology Executive
Wu Yongqiang November 24, 2016 No
Co., Ltd. director
Executive
Shenzhen Yankai Electrical Technology Co., director and
Wu Yongqiang May 5, 2019 No
Ltd. general
manager
Executive
Topband (Qingdao) Intelligent Control Co., director and
Wu Yongqiang March 29, 2021 No
Ltd. general
manager
Executive
Ningbo Topband Intelligent Control Co., director and
Wu Yongqiang August 28, 2017 No
Ltd. general
manager
Executive
Shenzhen Shuofang Precision Machinery director and
Ji Shuhai May 24, 2010 Yes
Co., Ltd. general
manager
Executive
director and
Peng Ganquan Shenzhen Allied Control System Co., Ltd. December 20, 2016 No
general
manager
Peng Ganquan Shenzhen Topband Automotive Electronics General September 7, 2021 No
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Co., Ltd. Manager
Peng Ganquan TOPBAND INDIA PRIVATE LIMITED Director December 11, 2015 No
Shenzhen Topband Software Technology
Zheng Sibin Supervisor February 26, 2004 No
Co., Ltd.
Zheng Sibin Chongqing Topband Industrial Co., Ltd. Supervisor March 12, 2008 No
Independent
Hua Xiuping Ningbo Fubang Jingye Group Co., Ltd. March 28, 2020 Yes
director
Ningbo Yuyao Rural Commercial Bank Co., Independent
Hua Xiuping February 17, 2022 Yes
Ltd. director
Independent
Hua Xiuping Bank of Dongguan Co. Ltd. June 1, 2020 Yes
director
Associate
Nottingham University Business School
Hua Xiuping Professor of July 1, 2016 Yes
(China)
Finance
Zhuoyuehui Innovation Development
Li Xumeng Researcher June 1, 2018 Yes
(Shenzhen) Co., Ltd.
Independent
Huang Yuegang Shenzhen Aoya Design Co., Ltd. July 6, 2021 Yes
director
Independent
Huang Yuegang Guizhou Tyre Co., Ltd. March 1, 2019 Yes
director
Executive
Huizhou Topband Electrical Technology Co., director and
Dai Huijuan November 14, 2011 No
Ltd. general
manager
Shenzhen Topband Automotive Electronics
Dai Huijuan Supervisor September 7, 2021 No
Co., Ltd.
Description of
employment in None
other units
Punishments imposed by securities regulatory authorities on current and outgoing directors, supervisors and senior
executives of the company in recent three years
□ applicable √ not applicable
3. Remuneration of directors, supervisors and senior executives
The decision-making procedure, determination basis and actual payment of the remuneration for directors,
supervisors and senior executives
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1. Decision-making procedure and determination basis of the remuneration: According to the "Salary
Management System for Directors, Supervisors and Senior Executives" approved by the resolution of the General
Meeting of Shareholders of the Company, salaries shall be paid to the directors, supervisors and senior executives
of the Company. After the salary and assessment committee formulates a salary scheme for directors, it shall be
submitted to the Board of Directors for deliberation and application shall be to the General Meeting of
Shareholders for approval.
2. The "Salary Management System for Directors, Supervisors and Senior Executives of Shenzhen Topband
Co., Ltd.", revised at the 2011 Annual General Meeting of Shareholders held on April 17, 2012, stipulates that the
allowance for independent directors of the Company is RMB 84,000 per year (before tax), which will be paid
according to length of employment period and relevant regulations. The Company shall be responsible for the
travel expenses of the independent directors who attend the Board of Directors and the General Meeting of
Shareholders and the expenses required for the exercise of their functions and powers according to the Articles of
Association of the Company.
Remuneration of directors, supervisors and senior executives during the reporting period
Unit: 1,0000 yuan
Total pre-tax Is remunerations
remuneration received from
Name Position Gender Age Position status
received from the related parties of
Company the Company
Chairman of the
Wu Yongqiang Male 57 Incumbent 157.7 No
Board
Ji Shuhai Director Male 60 Incumbent 8.4 No
Director and
Zheng Sibin deputy general Male 56 Incumbent 167.87 No
manager
Director and
Ma Wei deputy general Male 48 Incumbent 166.9 No
manager
Peng Ganquan Director Male 50 Incumbent 160.15 No
Wu Hang Director Male 38 Incumbent 8.4 No
Independent
Li Xumeng Male 56 Incumbent 6.3 No
director
Independent
Hua Xiuping Female 44 Incumbent 8.4 No
director
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Independent
Shi Yun Male 44 Incumbent 2.1 No
director
Deputy General
Manager and
Wen Zhaohui Secretary of the Female 48 Incumbent 89.96 No
Board of
Directors
Chief financial
Xiang Wei Male 45 Incumbent 74.03 No
officer
Dai Huijuan Supervisor Female 46 Incumbent 96.12 No
Kang Weiquan Supervisor Male 38 Incumbent 34.11 No
Chen Jinzhou Supervisor Male 44 Incumbent 89.09 No
Independent
Huang Yuegang Male 64 Incumbent 8.4 No
director
Total -- -- -- -- 1,077.93 --
VI. Performance of duties by directors during the reporting period
1. Conditions of the Board of Directors during the reporting period
Meeting session Meeting date Date of disclosure Meeting resolution
1. Reviewed and approved the Proposal on the Acquisition of
83.5% Equity of Taixing Ninghui Lithium Battery Co., Ltd. by
Subsidiaries through Equity Transfer and Capital Increase; 2.
Reviewed and approved the Proposal on Developing Forward
The Fifth Meeting of the Foreign Exchange Trading Business; 3. Reviewed and approved
January 14, 2021 January 16, 2021
Seventh Board of Directors the Proposal on Signing the Purchase Framework Agreement
with Shenzhen Jizhiguang Electronics Co., Ltd.; 4. Reviewed
and approved the Proposal on Cancelling the Awarded but
Unexercised Stock Options of Ex-employees under the 2018
Stock Option Incentive Plan.
1. Reviewed and approved the Proposal on 2020 Annual Report
and Summary; 2. Reviewed and approved the Proposal on 2020
Work Report of the Board of Directors; 3. Reviewed and
approved the Proposal on 2020 Work Report of the General
The Sixth Meeting of the Manager; 4. Reviewed and approved the Proposal on 2020
March 5, 2021 March 9, 2021
Seventh Board of Directors Final Financial Report; 5. Reviewed and approved the Proposal
on 2020 Profit Distribution Plan; 6. Reviewed and approved the
Proposal on 2020 Annual Internal Control Evaluation Report;
7. Reviewed and approved the Proposal on Remuneration of
Company Directors in 2020; 8. Reviewed and approved the
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
Proposal on Remuneration of Senior Management of the
Company in 2020; 9. Reviewed and approved the Proposal on
Special Report on Deposit and Actual Use of Raised Funds in
2020; 10. Reviewed and approved the Proposal on the Second
Exercise Period of 2018 Stock Option Incentive Plan Meeting
the Exercise Conditions and Exercisable Rights; 11. Reviewed
and approved the Proposal on Adjustment of the Incentive
Objects and the Number of Stock Options of 2018 Stock Option
Incentive Plan; 12. Reviewed and approved the Proposal on
Adjusting the Exercise Price of the 2018 Stock Option Incentive
Plan; 13. Reviewed and approved the Proposal on Using Part
of Idle Raised Funds and Self-owned Funds to Purchase Bank
Financial Products; 14. Reviewed and approved the Proposal
on Application for Comprehensive Credit Line from Banks by
the Company and Its Subsidiaries in 2021; 15. Reviewed and
approved the Proposal on Renewing the Employment of Audit
Institution in 2021; 16. Reviewed and approved the Proposal on
Social Responsibility Report in 2020; 17. Reviewed and
approved the Proposal on Provision for Asset Impairment in
2020; 18. Reviewed and approved the Proposal on Increasing
the Registered Capital of the Company; 19. Reviewed and
approved the Proposal on Changing Business Scope of the
Company; 20. Reviewed and approved the Proposal on
Amendment of the Articles of Association; 21. Reviewed and
approved the Proposal on the Notice of Holding the 2020
Annual General Meeting of Shareholders
1. Reviewed and approved the Proposal on Adding Temporary
The Seventh (Extraordinary)
Proposals at the 2020 Annual General Meeting of Shareholders
Meeting of the Seventh March 18, 2021 March 19, 2021
of the Company; 2. Reviewed and approved the Proposal on
Board of Directors
By-election of Independent Directors of the Company
1. Reviewed and approved the Proposal on Requesting the
Shareholders' Meeting to Extend the Validity Period of
Authorization to the Board of Directors of the Company for
Handling Matters Related to the 2020 Non-public Offering of
The Eighth (Extraordinary)
Stocks; 2. Reviewed and approved the Proposal on Extending
Meeting of the Seventh April 21, 2021 April 23, 2021
the Validity Period of the Resolution of the Shareholders'
Board of Directors
Meeting for Non-public Offering of Stocks of the Company in
2020; 3. Reviewed and approved the Proposal on Convening
the First Extraordinary Shareholders' Meeting of the Company
in 2021
1. Reviewed and approved the Proposal on the Full Text and
The Ninth Meeting of the
April 26, 2021 April 27, 2021 Main Body of the First Quarter Report of 2021; 2. Reviewed
Seventh Board of Directors
and approved the Proposal on Adjusting the Exercise Price of
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the 2018 Stock Option Incentive Plan; 3. Reviewed and
approved the Proposal on Formulating the Management System
of Subsidiaries; 4. Reviewed and approved the Proposal on
Formulating the Internal Control Management System; 5.
Reviewed and approved the Proposal on Amending the
Management System of Public Information Disclosure; 6.
Reviewed and approved the Proposal on the Company Opening
a Special Account for Funds Raised from Non-public Offerings
and Signing a Supervision Agreement for Raised Funds.
1. Reviewed and approved the Proposal on Increasing the
Amount of Idle Raised Funds to Buy Bank Financial Products 2.
Reviewed and approved the Proposal on Using Part of Idle
The Tenth Meeting of the
June 8, 2021 June 9, 2021 Raised Funds for Temporary Supplementation of Working
Seventh Board of Directors
Capital 3. Reviewed and approved the Proposal on
Replacement of Pre-invested Self-raised Funds with Raised
Funds
1. Reviewed and approved the Proposal on Semi-annual Report
The Eleventh Meeting of the and Summary in 2021; 2. Reviewed and approved the Proposal
July 26, 2021 July 28, 2021
Seventh Board of Directors on Semi-annual Special Report on Deposit and Use of Raised
Funds in 2021;
1. Reviewed and approved the Proposal on Increasing
The Twelfth Meeting of the
August 17, 2021 August 18, 2021 Investment in Wholly Owned Subsidiaries and Foreign
Seventh Board of Directors
Investment
The Thirteenth
(Extraordinary) Meeting of September 20, September 22, 1. Reviewed and approved the Proposal on the 2021 Restricted
the Seventh Board of 2021 2021 Stock Incentive Plan (Plan) of the Company
Directors
1. Reviewed and approved the Proposal on the Company's 2021
Restricted Stock Incentive Plan (Draft) and Its Summary; 2.
Reviewed and approved the Proposal on Administrative
Measures for the Implementation and Evaluation of the
Company's 2021 Restricted Stock Incentive Plan; 3. Reviewed
The Fourteenth Meeting of and approved the Proposal on Requesting the Shareholders'
the Seventh Board of October 13, 2021 October 14, 2021 Meeting to Authorize the Board of Directors to Handle Matters
Directors Related to the Company's 2021 Restricted Stock Incentive Plan;
4. Reviewed and approved the Proposal on Increasing the
Registered Capital of the Company; 5. Reviewed and approved
the Proposal on Amendment of the Articles of Association; 6.
Reviewed and approved the Proposal on Convening the Second
Extraordinary Shareholders’ Meeting in 2021
The Fifteenth 1. Reviewed and approved the Proposal on the Third Quarter
October 27, 2021
(Extraordinary) Meeting of Report of 2021
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the Seventh Board of
Directors
1. Reviewed and approved the Proposal on Adjusting the
The Sixteenth
Number of Stock Options Granted under the 2021 Restricted
(Extraordinary) Meeting of
November 2, 2021 November 3, 2021 Stock Incentive Plan and List of Incentive Objects; 2. Reviewed
the Seventh Board of
and approved the Proposal on Granting Restricted Shares to
Directors
Incentive Objects
1. Reviewed and approved the Proposal on Foreign Investment
of and Signing of Investment Agreement by Wholly Owned
The Seventeenth
Subsidiaries; 2. Reviewed and approved the Proposal on
(Extraordinary) Meeting of
December 7, 2021 December 9, 2021 Adjusting the Number of Stock Options Granted under the 2021
the Seventh Board of
Restricted Stock Incentive Plan and List of Incentive Objects;3.
Directors
Reviewed and approved the Proposal on Convening the Third
Extraordinary Shareholders' Meeting in 2021
2. Attendance of directors at board meetings and the general meetings of shareholders
Attendance of directors at board meetings and the general meetings of shareholders
Number of Did any of
board meetings Number of Number of Number of them fail to Number of the
Number of
that shall be board meetings board meetings times of attend board general
times of
Names of directors attended that shall be attended by entrusted meetings in meetings of
absence from
during this attended on the means of attendance at person for two shareholders
board meetings
reporting spot communication board meetings consecutive attended
period times
Wu Yongqiang 13 13 0 0 0 No 4
Ji Shuhai 13 0 13 0 0 No 4
Ma Wei 13 13 0 0 0 No 4
Peng Ganquan 13 13 0 0 0 No 4
Zheng Sibin 13 13 0 0 0 No 4
Wu Hang 13 0 13 0 0 No 4
Shi Yun 3 0 3 0 0 No 1
Huang Yuegang 13 1 12 0 0 No 4
Hua Xiuping 13 0 13 0 0 No 4
Li Xumeng 10 0 10 0 0 No 3
Description of absence from board meetings for two consecutive times
Not applicable
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3. Objections raised by directors to relevant matters of the Company
Did any director raise any objection to relevant matters of the Company
□ Yes √ No
During the reporting period, no director raised any objection to relevant matters of the Company.
4. Other descriptions of directors' performance of duties
Were the relevant suggestions of directors to the Company adopted
√ Yes □ No
Description of the fact that the relevant suggestions of directors to the Company were or were not adopted
Not applicable
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VII. Information of special committees under the Board of Directors during the reporting
period
Number
Information Other Details of
Names of of Meeting Important opinions and
about Meeting content performance objections
committees meetings date suggestions put forward
members of duties (if any)
held
Deliberation: 1. Proposal on
the Work Report of the Audit
Department in the Fourth
Quarter of 2020 and the Work
Plan for the First Quarter of
2021; 2. Proposal on the Work
Summary of the Audit
Department in 2020 and the
Not Not
2021/1/21 Work Plan for the Next Year; 3.
applicable applicable
Proposal on the Audit Work
Schedule of Topband's 2020
Annual Report; 4. Proposal on
Financial Department The Audit Committee
Huang Providing Preliminary audited the matters under
Yuegang, Examination Opinions on consideration in strict
2
Hua Xiuping, Financial and Accounting accordance with the
Shi Yun Statements in 2020. Working Rules of the Audit
Deliberation: 1. Proposal on Committee under the Board
Audit
Opinions of 2020 Financial of Directors and relevant
Committee
and Accounting Report of the laws and regulations, fully
Company; 2. Proposal on 2020 communicated with the
Internal Control Evaluation Financial Department and
Report of the Company; 3. the audit institution, and
Not Not
2021/3/5 Proposal on Renewing the unanimously agreed to the
applicable applicable
Employment of Baker Tilly relevant proposal.
China Certified Public
Accountants as the Audit
Institution in 2021; 4. Proposal
on Provision for Asset
Impairment in 2020
Deliberation: 1. Proposal on
Opinions of Financial and
Huang
Accounting Statements of the
Yuegang, Not Not
3 2021/4/26 Company for the First Quarter
Hua Xiuping, applicable applicable
of 2021; 2. Proposal on First
Li Xumeng
Quarter Work Report and
Second Quarter Work Plan of
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Audit Department in 2021
Deliberation: 1. Proposal on
Opinions of Financial and
Accounting Report of the
Company for the Second
Not Not
2021/7/27 Quarter of 2021; 2. Proposal
applicable applicable
on the Second Quarter Work
Report and Third Quarter
Work Plan of Audit Department
in 2021.
Deliberation: 1. Proposal on
Opinions of Financial and
Accounting Report of the
Company for the Third Quarter
Not Not
2021/10/27 of 2021; 2. Proposal on the
applicable applicable
Third Quarter Work Report
and Fourth Quarter Work Plan
of the Audit Department in
2021
The Nominating Committee
Shi Yun, Wu Reviewed and approved the
examined the qualifications
Nomination Yongqiang, Proposal on By-election of Not Not
1 2021/3/17 of candidates carefully and
committee Huang Independent Directors of the applicable applicable
unanimously agreed to the
Yuegang Company
relevant proposal.
Deliberation: 1. Proposal on
Remuneration of Company
Directors in 2020 2. Proposal
2021/3/5 The Remuneration and
on Remuneration of Senior
Appraisal Committee under
Management of the Company
the Board of Directors
in 2020
reviewed the matters under
Deliberation: Proposal on the
Hua Xiuping, consideration in strict
Company's 2021 Restricted
Salary and Wu accordance with the
Stock Incentive Plan (Draft) Not Not
Assessment Yongqiang, 2 Working Rules of
and Its Summary; 2. Proposal applicable applicable
Committee Huang Remuneration and Appraisal
on Administrative Measures for
Yuegang Committee under the Board
the Implementation and
2021/10/13 of Directors and relevant
Evaluation of the Company's
laws and regulations, and
2021 Restricted Stock Incentive
unanimously agreed to the
Plan; 3. Proposal on the List of
relevant proposal.
Incentive Objects under the
Company's 2021 Restricted
Stock Incentive Plan; N/A
Strategy Wu Not Not
0 - - Not applicable
Committee Yongqiang, applicable applicable
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Zheng Sibin,
Peng
Ganquan, Ma
Wei, Li
Xumeng
Li Xumeng, The Nominating Committee
Wu Proposal on By-election of examined the qualifications
Nomination Not Not
Yongqiang, 1 2021/3/17 Independent Directors of the of candidates carefully and
committee applicable applicable
Huang Company unanimously agreed to the
Yuegang relevant proposal.
VIII. Work of the Board of Supervisors
Did the Board of Supervisors find that the Company had any risk in the supervision activities during the reporting
period
□ Yes √ No
The Board of Supervisors had no objection to the supervisory matters during the reporting period.
IX. Information on the Company's employees
1. Number, professional composition and education level of employees
Number of on-the-job employees in the parent company at the end
2,235
of the reporting period (persons)
Number of on-the-job employees in major subsidiaries at the end
6,210
of the reporting period (persons)
Total number of on-the-job employees at the end of the reporting
8,445
period (persons)
Total number of salaried employees in the current period
8,454
(persons)
Number of retired employees paid by the parent company and
6
major subsidiaries (persons)
Professional composition
Major composition category Number of persons of professional composition (persons)
Production personnel 5,001
Sales personnel 546
Technical personnel 1,582
Financial personnel 84
Administrative personnel 606
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Logistics personnel 626
Total 8,445
Education level
Education level category Number (persons)
Bachelor's degree or above 2,608
Junior college level 1,205
Below junior college level 4,632
Total 8,445
2. Salary policy
According to the relevant national labor laws and policies and the actualities of the Company, the Company has
formulated salary management regulations, and the salary is assessed and paid in accordance with the salary
management regulations. The Company strictly abides by the Labor Law and relevant national and local labor
laws and regulations, signs labor contracts with employees, and pays various employee insurance premiums
according to the regulations. The overall salary of the Company consists of the following three parts: fixed salary,
performance salary and welfare allowance. Fixed salary includes basic salary, post salary and confidential salary;
performance salary includes a performance bonus, a year-end bonus and a special bonus; benefits include
statutory benefits, company benefits and allowances.
3. Training plan
The Company has established a talent training system combining professional competence and leadership,
including routine training and professional module training. The Company develops different training courses for
new employees, R&D, purchasing, sales and middle and senior management personnel by stages, and implements
annual training plans from the perspective of corporate culture, professional skills, management improvement,
professional quality and mental health. Through the combination of internal and external training, excellent
human resources support is provided for the sustainable development of the Company.
In 2021, the talent development department of the Company and other relevant departments carried out a
series of training. In order to help new employees better adapt to the new work environment and operating posts,
understand relevant systems of the Company and integrate themselves into the enterprise culture, the human
resource center of the Company has specially arranged a systemic training plan for "Topband New Employee
Training", and the training covers the company profile, welfare, corporate culture, information system, finance,
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and intellectual property rights, legal basis, ISC core ideas and professional mental health, etc."Topband
Newcomer Training" has become a systematic newcomer training plan of the Company. In 2021, the Company
held 14 sessions of new employee training and 94 sessions of employee training in Shenzhen and Huizhou.
In addition to SAP system training and TC system training, the Company will also hold various professional
training for different positions from time to time, including financial, legal, patent, customs, procurement and
supply chain training, sales training, R&D training, manufacturing and quality training, as well as subject
exchange and sharing of various professional modules and technologies. The Company's training topics in 2021
covered R&D modules, manufacturing and quality modularization, power IC technology, trademarks, customs
knowledge, PCB design specifications, prevention and response of workplace-related psychological problems,
project management, supply chain strategy and plan change, supplier negotiation and other topics. To meet
employees’ needs of self-competence improvement and make full use of the Company's internal wisdom, the
Company invited internal lecturers for development according to the needs of students during the reporting period,
including skills such as PPT Production, management such as the Improvement of Team Cohesion, mental health such as
Mental Health Sandplay Experience, Flower Arrangement Experience, Learning Photography and other interest courses,
which won unanimous praise within the Company. The Company will also seek for external high-quality training
and communication opportunities actively to improve the professional ability of employees effectively. In 2021,
external communication topics of the Company covered innovative methodology (TRIZ), electromagnetic
compatibility (EMC) design and test case analysis, electronic product reliability and DOE test design, etc.
In terms of the training of leadership promotion, the Company designed and implemented training camps for
management ability and leadership promotion at all levels in 2021, realizing the full coverage of training of
management cadres at all levels from grass-roots reserve cadres, grass-roots team leaders to middle-level
supervisors and managers, and then to managers of BUs of the Company, with an aim to improve the
comprehensive ability of its management and provide talent guarantee for its strategic implementation.
During the reporting period, Topband adhered to the concept of mutual benefit, mutual trust, mutual
assistance and common development with its supplier partners over the years, and started from five major areas,
including supply chain, quality, management, HR and EAP, and set up a supplier communication platform initially,
which was committed to the common growth of the Company and suppliers.
The Company always pays more attention to the training plan. In order to improve the pertinence of training
and enhance the professional ability of personnel in all departments of the Company, the module heads of all the
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departments of the Company and the talent development department of the human resources center of the
Company have jointly formulated the 2022 annual training plan. In order to improve the internal implementation
ability of each department, the module heads of all departments and the corresponding lecturers ensure that the
training plan will be carried out in an effective and orderly manner, and the talent development department of the
human resources center will supervise and manage the implementation. The training plan for 2022 covers topics
such as management, professional technical theory and practice, negotiation, customer development and
management. In terms of course design, teaching method, training system, instructor team and other resources, the
Company has effectively guaranteed the opportunities for employees to learn and grow, safeguarding the career
development of employees.
4. Information on labor outsourcing
□ applicable √ not applicable
X. Profit distribution of the Company and conversion of capital accumulation fund into share capital
Profit distribution policy during the reporting period, especially the formulation, implementation or adjustment of
the cash dividend policy
√ applicable □ not applicable
During the reporting period, the Board of Directors of the Company formulated the profit distribution
proposal in 2020 after detailed consultation and listening to the opinions of the shareholders of the Company in
combination with the Company’s profit situation and investment situation in 2020 and the investment and
expenditure plans in 2021, which was deliberated and approved by the 6th Meeting of the 7th Board of Directors
and the Annual General Meeting of Shareholders in 2020. The profit distribution plan of the Company in 2020
was based on the total share capital of 1,120,377,889 shares (excluding 14,838,920 shares of treasury stock that
have been repurchased) of the Company and the cash dividends of 0.5 yuan (including tax) for every 10 shares
was distributed to all shareholders. Besides, no share capital was converted from the accumulation fund and no
bonus share was given. The profit distribution plan above was implemented on April 9, 2021.The 2020 annual
profit distribution plan complied with laws, regulations, the Articles of Association and the Company's
Shareholders' Dividend Plan for the Next Three Years (2020-2022). The profit distribution decision-making
procedure complied with relevant laws, regulations and rules.
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Special explanation of cash dividend policy
Whether it met the requirements of the Articles of Association or
Yes
the resolution of the General Meeting of Shareholders:
Whether the dividend standard and proportion were definite and
Yes
clear:
Whether the relevant decision-making procedures and
Yes
mechanisms were complete:
Whether the Independent Director performed their duties and
Yes
played their due roles:
Whether the medium and small shareholders had the opportunity
to fully express their opinions and demands and whether their Yes
legitimate rights and interests have been fully protected:
If the cash dividend policy is adjusted or changed, whether the
Not applicable
conditions and procedures were compliant and transparent:
The Company made a profit during the reporting period and the profit of the parent company available for
shareholders’ distribution was positive, but no cash dividend distribution proposal was proposed
□ applicable √ not applicable
Profit distribution and conversion of capital accumulation fund to share capital in the reporting period
√ applicable □ not applicable
Number of bonus shares send for every 10 shares
0
(shares)
Number of dividend paid for every 10 shares (yuan)
0.50
(including tax)
Number of conversion for every 10 shares (shares) 0
Share capital base of the distribution proposal
1,256,978,072
(shares)
Cash dividend amount (yuan) (including tax) 62,848,903.601
Cash dividend amount (yuan) by other means (such
0
as share repurchase)
Total cash dividends (including other means) (yuan) 62,848,903.60
Distributable profit (yuan) 1,064,111,338.27
Proportion of total cash dividends (including other
100%
means) in total profit distribution
Cash dividend situation of this time
If the development stage of the Company is a growth period and there are major capital expenditure arrangements, the minimum
proportion of cash dividends in this profit distribution should reach 20% during profit distribution
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Detailed description of the profit distribution or capital accumulation fund conversion proposal
Profit distribution proposal in 2021: It was based on 1,256,978,072 shares of the Company’s total share capital and the cash
dividends of 0.5 yuan (including tax) for every 10 shares were distributed to all shareholders. Besides, no share capital was converted
from the accumulation fund and no bonus share was given. The accumulated undistributed profits remaining after the implementation
of the profit distribution plan will be carried forward to subsequent years. If the total share capital of the Company changed due to the
share repurchase, exercise of stock options and other reasons before the implementation of the profit distribution plan, the total
amount of distribution should be adjusted accordingly in the principle that the distribution ratio per share remains unchanged.
Note 1: The dividend amount is the estimated amount calculated based on the share capital and dividend ratio at
the end of the reporting period. The specific dividend amount is subject to the subsequent actual dividend.
XI. Implementation of the Company’s equity incentive plan, employee stock ownership plan
or other employee incentive measures
√ applicable □ not applicable
1. Stock incentive
1. Implementation of the stock option incentive plan in 2018
On October 26, 2018, the 7th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th Board of
Supervisors of the Company deliberated and approved the Proposal on the Company’s 2018 Stock Option
Incentive Plan (Draft) and Its Abstract, which was approved by the Company’s first Extraordinary General
Meeting of Shareholders in 2018. The grant registration was completed on January 4, 2019 and a total of 684
incentive objects were granted 42.887 million stock options. Among them, 684 incentive objects were all directors,
middle and senior executives and core technology (business) backbones of the Company. The grant price was 3.80
yuan/share and the grant date was November 27, 2018. The stock option was locked within 12 months from the
date of grant. After meeting the exercise conditions, the incentive objects could apply for exercise in three phases
within 48 months after the date of grant.
On July 26, 2019, the 15th Meeting of the 6th Board of Directors and the 12th Meeting of the 6th Board of
Supervisors of the Company deliberated and approved the Proposal on Adjustment of the Exercise Price of the
Stock Option Incentive Plan in 2018. As the Company implemented the equity distribution in 2018, the exercise
price was adjusted from 3.80 yuan/share to 3.70 yuan/share.
On March 30, 2020, the 22nd Meeting of the 6th Board of Directors of the Company deliberated and
approved 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
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Stock Options of 2018 Stock Option Incentive Plan". There were 606 incentive objects in the first exercise period
of the 2018 stock option incentive plan and a total of 12.0147 million stock options meeting the exercise
conditions could be exercised, and the Company planned to adopt the independent exercise mode. Since the
announcement on March 31 to the exercise date, the 7 incentive objects, such as Fang Dikui and Zhang Rong,
resigned and left the Company due to personal reasons. 142,000 stock options granted but not exercised by them
could not be exercised and would be canceled by the Company. The review procedure for adjusting the number of
these options would be performed in the future.
As of May 21, 2020, 606 incentive objects in the first exercise period have completed the exercise of 12.0147
million stock options, increasing the Company’s share capital by 12,014,700 yuan.
As of August 6, 2021, 567 incentive objects in the second exercise period have completed the exercise of
10.9506 million stock options, increasing the Company’s share capital by 10.9506 million yuan.
For details of the implementation of the stock option incentive plan in 2018, please refer to the Company’s
announcements disclosed in the Securities Times and CNINFO (http://www.cninfo.com.cn) on July 30, 2019,
March 31, 2020, May 11, 2020 and March 22, 2021.
2. Implementation of the 2021 Restricted Stock Incentive Plan:
(1) The Company held the 13th (extraordinary) meeting of the 7th Board of Directors on September 20, 2021,
which reviewed and approved the Proposal on the Company's 2021 Restricted Stock Incentive Plan and agreed to
grant a total of no more than 34 million restricted shares to incentive objects. The stocks under the Plan came from
the shares repurchased by the Company's special account and A-share common stocks offered directly to incentive
objects by the Company, among which 14,838,920 shares in the Company's special securities account for
repurchase will be used as part of the stock source for the implementation of the Plan and the rest will be offered
directly to incentive objects. The restricted sale period of the restricted shares granted is 12, 24 and 36 months
from the date of their registration, and the restricted sale will be lifted in the proportion of 30%, 30% and 40%.
(2) The Company held the 14th meeting of the 7th Board of Directors and the 11th meeting of the 7th Board
of Supervisors on October 13, 2021, which reviewed and approved the Proposal on the Company's 2021
Restricted Stock Incentive Plan (Draft) and Its Summary, the Proposal on Administrative Measures for the
Implementation and Evaluation of the Company's 2021 Restricted Stock Incentive Plan, and the Proposal on
Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters Related to the
Company's 2021 Restricted Stock Incentive Plan and agreed to grant 34 million restricted shares to 1,250
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incentive objects. The 11th meeting of the 7th Board of Supervisors of the Company reviewed and approved the
relevant proposal and checked the list of incentive objects under the Incentive Plan. Independent directors
expressed their independent opinions on this and lawyers issued legal opinions.
(3) The Company publicized the names and positions in the list of incentive objects under the Incentive Plan
in the Company's internal OA office system on October 15, 2021. The publicity period was from October 15, 2021
to October 24, 2021.No organization or individual raised any objection to the list of incentive objects during the
publicity period. On October 26, 2021, the Company disclosed the Audit Opinions and Publicity Statement of the
Board of Supervisors on the List of Incentive Objects under the 2021 Restricted Stock Incentive Plan. The Board
of Supervisors of the Company believed that the proposed incentive objects under the Incentive Plan did not have
any situation making them incapable of being incentive objects according to relevant laws and regulations and met
the participation qualification conditions for the scope of incentive objects under the Incentive Plan of the
Company.
(4) On November 1, 2021, the Company held the second extraordinary shareholders’ meeting, which
reviewed and approved the Proposal on the Company's 2021 Restricted Stock Incentive Plan (Draft) and Its
Summary, the Proposal on Administrative Measures for the Implementation and Evaluation of the Company's
2021 Restricted Stock Incentive Plan, and the Proposal on Requesting the Shareholders' Meeting to Authorize the
Board of Directors to Handle Matters Related to the Company's 2021 Restricted Stock Incentive Plan and other
relevant proposals related to the Incentive Plan, and authorized the Board of Directors to determine the grant date
under the Incentive Plan, grant restricted shares to incentive objects when they met the conditions and handle all
matters required for the grant of restricted shares.
(5) On November 2, 2021, the Company held the 16th (extraordinary) meeting of the 7th Board of Directors
and the 13th (extraordinary) meeting of the 7th Board of Supervisors, which reviewed and approved the Proposal
on Adjusting the Number of Stock Options Granted under the 2021 Restricted Stock Incentive Plan and List of Incentive Objects and
the Proposal on Granting Restricted Shares to Incentive Objects. In view of the demission of the incentive object Ou Li
specified in the Incentive Plan and the fact that Wang Cheng, Shen Zhiwen and Tian Conghui et al. voluntarily
gave up the subscription of restricted shares to be granted by the Company for personal reasons, the Board of
Directors of the Company decided to cancel the restricted shares to be granted to them. After the cancellation, the
number of restricted shares to be granted under the Incentive Plan was reduced from 34 million to 33.951 million,
and the number of incentive objects from 1,250 to 1,246. November 2, 2021 was determined as the grant date, and
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33.951 million restricted shares were granted to 1,246 eligible incentive objects. The Board of Supervisors of the
Company reviewed the list of incentive objects, and independent directors expressed their independent opinions
and lawyers issued legal opinions.
(6) On December 7, 2021, the Company held the 17th (extraordinary) meeting of the 7th Board of Directors
and the 14th (extraordinary) meeting of the 7th Board of Supervisors, which reviewed and approved the Proposal
on Adjusting the Number of Stock Options Granted under the 2021 Restricted Stock Incentive Plan and List of Incentive Objects . In
view of the fact that 22 incentive objects such as Li Xiang, Yu Dingguo and Lu Yuanshan specified in the
Incentive Plan voluntarily gave up their subscription of all the restricted shares granted to them for personal
reasons and ten incentive targets such as Liao Xinmeng, Wang Cao and Liu Xiaoshi voluntarily gave up their
subscription of some of the restricted shares granted to them for personal reasons in the process of capital payment
before share registration after the Board of Directors of the Company confirmed November 2, 2021 as the grant
date under the 2021 Restricted Stock Incentive Plan, the Board of Directors of the Company adjusted the objects
and the number of shares granted under the 2021 Restricted Stock Incentive Plan according to the authorization of
the second extraordinary shareholders’ meeting of the Company in 2021.After adjustment, the number of
incentive objects under the 2021 Restricted Stock Incentive Plan decreased from 1,246 to 1,224, and the number
of restricted shares granted decreased from 33.951 million to 33.54432 million. The Board of Supervisors of the
Company reviewed the list of incentive objects, and independent directors expressed their independent opinions
and lawyers issued legal opinions.
(7) On December 16, 2021, Shenzhen Stock Exchange and Shenzhen Branch of China Securities Depository
and Clearing Co., Ltd. confirmed that the Company had completed the grant registration of 187.054 billion
restricted shares (new) and 14.83892 million restricted shares (repurchased) involved in the 2021 Restricted Stock
Incentive Plan. The shares above were listed on December 17, 2021.
For details of the implementation of the 2021 Restricted Stock Incentive Plan, please check the Company's
announcements in Securities Times and Juchao Information Network (http://www.cninfo.com.cn) on September
22, October 14, November 2, November 3, December 9, December 16 and December 20, 2021.
Equity incentives obtained by directors and senior management of the Company
√ applicable □ not applicable
Unit: share
Number Number Number Number Number of Number Market Number Number Number Grant Number
Name Position
of stock of new of shares of shares exercised of stock price at the of of of new price of of
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options stock exercisabl exercise shares and options end of the restricte shares restricte restricted restricte
held at options e during d during exercise held at reporting d stocks unlocke d stocks stocks d stocks
the granted the the price the end period held at d in the granted (yuan/shar held at
beginnin during reporting reportin during the of the (yuan/shar the current during e) the end
g of the the period g period reporting period e) beginnin period the of the
year reportin period g of the reportin period
g period (yuan/shar period g period
e)
Director
, deputy
general
manage
Zheng
r and 560,000 0 240,000 240,000 3.65 320,000 18.69 0 0 533,000 7.23 533,000
Sibin
BG
general
manage
r
Director
, deputy
general
manage
Ma Wei r and 700,000 0 300,000 300,000 3.65 400,000 18.69 0 0 616,000 7.23 616,000
BG
general
manage
r
Director
Peng and BG
Ganqua General 840,000 0 360,000 360,000 3.65 480,000 18.69 0 0 400,000 7.23 400,000
n Manage
r
Deputy
General
Manage
r and
Wen
Secretar
Zhaohu 420,000 0 180,000 180,000 3.65 240,000 18.69 0 0 183,000 7.23 183,000
y of the
i
Board
of
Director
s
Xiang Chief
280,000 0 120,000 120,000 3.65 160,000 18.69 0 0 183,000 7.23 183,000
Wei financia
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l officer
2,800,00 1,200,00 1,600,00 1,915,00 1,915,00
Total -- 0 1,200,000 -- -- 0 0 --
0 0 0 0 0
During the reporting period, the exercise conditions corresponding to the second exercise period of the 2018 Stock Option
Incentive Plan were met, and all the options of the directors and senior management above were exercised in the
Remarks (if any)
corresponding proportions. At the same time, the 2021 Restricted Stock Incentive Plan had not reached the unlocking
period, and all stocks were restricted.
Appraisal system and incentive methods of senior executives
The performance appraisal of the key management of the Company based on its operating benefits and
strategic objectives was conducted according to the Company's annual production, operation and management
capacity building, the achievement of objectives of managers' responsibilities and the principles of distribution on
the basis of labor, combination of responsibilities, rights and benefits, combination of the income level with the
Company's performance and objectives of the work in charge, equal attention to incentives and constraints, and
combination of result appraisal with process management. The salary distribution of senior management was
determined according to the appraisal results so as to promote the Company's long-term development and
achievement of strategic objectives.
The salary of senior management of the Company was subject to the annual salary system, which consisted
of basic annual salary, annual performance salary and long-term equity incentive. The basic annual salary was
mainly determined according to the average salary level of senior management of the Company in the previous
year, with reference to the characteristics of the same industry, market salary and other factors. The annual
performance salary was submitted to the Board of Directors for consideration and distribution after assessment
according to the year-end management, operating efficiency and operating quality. Long-term equity incentive
was formulated by the Company's administrative measures for periodical equity incentive assessment.
2. Implementation of employee stock ownership plan
□ applicable √ not applicable
3. Other employee incentives
□ applicable √ not applicable
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XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
During the reporting period, the Company updated and improved the internal control system on the basis of
daily supervision and special supervision of internal control and the actual situation of the Company according to
the Basic Standards for Enterprise Internal Control and its supporting guidelines in combination with its internal
control system and evaluation method, and revised and formulated the Administrative Measures for Seals,
Certificates and Qualification Documents and the Management System for Conference Confidentiality. At the same
time, the Company set up an internal audit institution to supervise and inspect the implementation of relevant
systems in collaboration with the audit committee according to the management requirements, so as to ensure the
implementation of its rules and regulations effectively, reduce operational risks and strengthen internal control. It
continuously optimized the organizational structure, clarified the responsibilities of various departments and
corresponding posts, and controlled the implementation of internal control involved in the whole process of
operation and management activities such as control decision-making, execution, supervision and feedback
effectively to avoid internal control loopholes.
The Company established a set of rigorous, scientific and effective internal control system appropriate for its
practical conditions, and formulated effective internal control evaluation standards. It prevented risks in operation
and management effectively and promoted the realization of internal control objectives through the operation,
analysis and evaluation of the internal control system.
2. Details of major defects in internal control found during the reporting period
□ Yes √ No
XIII. Management and control of subsidiaries by the Company during the reporting period
Problem Progress of Subsequent plan
Integration Measures taken to
Company name Integration plan encountered in solving the for solving the
progress solve the problem
integration problem problem
1. Reorganization Employees Several all-staff Employees have
Taixing Ninghui and adjustment of needed a process meetings were basically Active training
Completion of all
Lithium Battery the organizational of adaptation for held to publicize recognized and cultural
work as planned
Co., Ltd. structure; 2. full recognition of and provide Topband’s culture integration
Check, the corporate training in and can abide by
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confirmation and culture. Topband’s various systems
delivery of claims corporate culture, consciously. The
and debts; 3. various rules and operation of the
Check of fixed regulations and Company has
assets and core values of the gradually got on
inventories to Company. the right track.
ensure the
consistency
between accounts
and items; 4.
Organization and
improvement of
the sales customer
files.
XIV. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
Date of disclosure of the full text of the
March 22, 2022
internal control evaluation report
Index for disclosure of the full text of the
CNINFO (http://www.cninfo.com.cn)
internal control evaluation report
The ratio of the total assets of the unit
included in the evaluation scope to the total
100.00%
assets in the consolidated financial
statement of the Company
The ratio of the operating income of the
unit included in the evaluation scope to the
100.00%
operating income in the consolidated
financial statements of the Company
Defect identification criteria
Category Financial report Non-financial report
Signs of major financial report defects Qualitative criteria for the evaluation of
include: internal control defects of non-financial
(1) Fraud of directors, supervisors and senior reports determined by the Company:
management of the Company; Non-financial report defects are mainly
Qualitative standard (2) Correction of the published financial identified based on the degree of their
report by the Company; influence on the effectiveness of business
(3) Significant misstatements in the current processes and the possibility of their
financial report discovered by certified public occurrence.
accountants but not recognized by internal Defects with small possibility of
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control of the Company; occurrence, which will reduce the work
(4) Ineffective supervision of the audit efficiency or effect or increase the
committee and the audit department on uncertainty of the effect or make it
external financial reports and internal control deviate from the expected goal, are
of financial reports of the Company. general defects;
Signs of important financial report defects Those with relatively high possibility of
include: occurrence, which will greatly reduce the
(1) Failure to select and apply accounting work efficiency or effect or greatly
policies in accordance with generally increase the uncertainty of the effect or
accepted accounting standards; make it deviate significantly from the
expected goal, are important defects.
(2) Failure to establish anti-fraud procedures
Those with high possibility of
and control measures;
occurrence, which will reduce the work
(3) Failure to establish or implement the
efficiency or effect seriously or increase
corresponding control mechanism for the
the uncertainty of the effect seriously or
accounting treatment of unconventional or
make it deviate seriously from the
special transactions and lack of
expected goal, are major defects.
corresponding compensatory control;
(4) Existence of one or more defects in the
control of the final financial reporting process
and failure to reasonably guarantee the
authenticity and completeness of the financial
statement prepared.
General defects refer to other control defects
except the above-mentioned major defects
and important defects.
In quantitative standards, the consolidated In quantitative standards, the operating
operating income and total assets are income and total assets are measurement
measurement indicators. Internal control indicators. Internal control defects with
defects with losses or possible losses incurred losses or possible losses incurred related
related to the income statement are measured to the income statement are measured by
by the consolidated operating income. Such a the consolidated operating income. Such
defect is identified as a general one if the a defect is identified as a general one if
financial report misstatement amount caused the financial report misstatement amount
by it alone or together with other defects is caused by it alone or together with other
Quantitative standard
less than 0.5% of the consolidated operating defects is less than 0.5% of the
income, an important one if the same is more consolidated operating income, an
than 0.5% but less than 1% of the important one if the same is more than
consolidated operating income, and a major 0.5% but less than 1% of the consolidated
one if the same is more than 1% of the operating income, and a major one if the
consolidated operating income. same is more than 1% of the consolidated
Internal control defects with losses or operating income.
possible losses incurred related to the asset Internal control defects with losses or
management are measured by total possible losses incurred related to the
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consolidated assets. Such a defect is asset management are measured by total
identified as a general one if the financial consolidated assets. Such a defect is
report misstatement amount caused by it identified as a general one if the financial
alone or together with other defects is less report misstatement amount caused by it
than 0.5% of total consolidated assets, an alone or together with other defects is
important one if the same is more than 0.5% less than 0.5% of total consolidated
but less than 1% of total consolidated assets, assets, an important one if the same is
and a major one if the same is more than 1% more than 0.5% but less than 1% of total
of total consolidated assets. consolidated assets, and a major one if
the same is more than 1% of total
consolidated assets.
Number of major defects in financial
0
reports (defects)
Number of major defects in non-financial
0
reports (defects)
Number of major defects in financial
0
reports (defects)
Number of major defects in non-financial
0
reports (defects)
2. Internal control audit report
√ applicable □ not applicable
The deliberation opinion paragraph in the internal control audit report
Baker Tilly International Accounting Firm (Special General Partnership) deems that as of December 31, 2021, the Company
maintained effective internal control related to financial reports in all material aspects in accordance with the Basic Code of Internal
Control of Enterprises and relevant norms.
Disclosure of internal control audit report Disclosure
Disclosure date of the full text of internal
March 22, 2022
audit report
Index of full-text disclosure of internal audit
CNINFO (http://www.cninfo.com.cn)
report
Opinion type of internal control audit report Standard and unqualified opinion
Were there major defects in the
No
non-financial report
Did the accounting firm issue an internal control audit report with a non-standard opinion
□ Yes √ No
Is the internal control audit report issued by the accounting firm consistent with the self-evaluation report of the
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Board of Directors
√ Yes □ No
XV. Rectification of self-examination problems in special actions of governance of listed
companies
Not applicable
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Section V Environmental and Social Responsibility
I. Major environmental issues
Whether the listed companies and their subsidiaries were key pollutant discharging organizations announced by
the Environmental Protection Department
□ Yes √ No
Administrative punishment for environmental problems during the reporting period
Influence on production and Rectification
Name of company or Reason for
Violation Punishment result operation of listed measures of the
subsidiary punishment
companies Company
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Refer to other environmental information disclosed by key pollutant discharge companies
□ applicable √ not applicable
Measures and effects taken to reduce carbon emissions during the reporting period
□ applicable √ not applicable
Reasons for not disclosing other environmental information
Not applicable
II. Social responsibility
The full text of the Report on Environment, Social Responsibility and Corporate Governance in 2021 was
published on CNINFO (http://www.cninfo.com.cn) on March 22, 2022.
III. Consolidation and expansion of the achievements of poverty alleviation and rural
revitalization
The Company has not carried out targeted poverty alleviation work in the reporting year and there was no
follow-up targeted poverty alleviation plan.
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Section VI Important Matters
I. Performance of commitments
1. Completed commitments in the reporting period and 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
Reasons for Commitment Commitment Commitment Commitment
Commitment content Performance
commitments Party type time period
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 period of
being the controlling shareholder
Commitments and/or actual controller of the Fulfill the
June 12, Long-term
Wu Yongqiang to horizontal Company, he would not directly or commitment
2007 effective
competition indirectly engage in any business strictly
Commitments
which was the same, similar or
made during the
substantially competitive with the
initial public
main business of the Company at
offering or
present and in the future.
refinancing
Ji Shuhai, a director of the Company
as a shareholder, has promised not to
Commitments directly or indirectly engage in any Fulfill the
June 12, Long-term
Ji Shuhai to horizontal business which was the same, commitment
2007 effective
competition similar or substantially competitive strictly
with the main business of the
Company at present and in the future
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in any way during his term of office.
1. I would not deliver benefits to
other organizations or individuals
free of charge or under unfair
conditions and not damage the
interests of the Company in other
means.
2. I fully supported and cooperated
with the Company in regulating the
duty consumption behavior of
directors and senior executives. Any
duty consumption behaviors would
occur within the scope necessary for
fulfilling my duty to the Company. I
strictly accepted the supervision and
management of the Company to
avoid extravagance or excessive
consumption.
3. I would strictly abide by the
relevant laws and regulations, the
regulations and rules of the CSRC,
All directors
the stock exchange and other Fulfill the
and senior Other April 29,
regulatory institutions as well as the On-going commitment
executives of commitments 2020
requirements of the Company’s rules strictly
the Company
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
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of Shareholders of the Company
deliberated (if I have vote/voting
right).6. If the Company would
implement the employee equity
incentive in the future, I would fully
support the Company to link the
arrangement of exercise conditions
of the employee incentive with the
implementation of the Company’s
compensation return measures. At
the same time, I would vote in favor
of the employee equity incentive
proposal when the Board of
Directors and the General Meeting
of Shareholders of the Company
deliberated (if I have vote/voting
right).7. If I violate the above
commitments, I would make an
explanation and apologize publicly
at the General Meeting of
Shareholders and the designated
newspapers and magazines
designated by the CSRC. I
voluntarily accept the self-discipline
supervision measures taken by the
stock exchange and China
Association for Public Companies. If
my breach of the commitment
causes losses to the Company or the
shareholders, I shall be liable for
compensation in accordance with the
law.
1. I would not abuse the position of
the controlling shareholder/actual
controller to interfere with the
operation and management activities
of the Company beyond my power
Fulfill the
Other and would not infringe the April 29,
Wu Yongqiang On-going commitment
commitments Company’s interests under any 2020
strictly
circumstances.2. I would try my best
to make the Company implement the
compensation return measures.3. I
would work hard to link the
compensation system formulated by
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the Board of Directors or the
Compensation Committee with the
implementation of the Company’s
compensation return measures.4. I
would work hard to link the exercise
conditions (if any) of the corporate
equity incentive to be published in
the future with the implementation
of the Company’s compensation
return measures.5. I would support
the relevant proposals related to the
implementation of the Company’s
compensation return measures and
would vote for them (if I have voting
right).6. After the issuance of this
commitment, if there are other
requirements in the relevant
provisions of the regulatory
institution on the compensation
return measures and its commitment
and the above commitments could
not meet the relevant requirements
of the regulatory institution, I
promise that I would issue a
supplementary commitment in
accordance with the relevant
provisions at that time.7. If I violate
the above commitments, I would
make an explanation and apologize
publicly at the General Meeting of
Shareholders and the designated
newspapers and magazines
designated by the 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.
Other If Huizhou Topband, a July 30, Fulfill the
Wu Yongqiang On-going
commitments wholly-owned subsidiary of 2020 commitment
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Shenzhen Topband Co., Ltd., failed strictly
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
High-tech Industrial Park in HZZK
Hi-tech Industrial Development
Zone to be used by “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
Peng Ganquan,
all the Company’s shares (including
Zheng Sibin, Fulfill the
Equity incentive Other the shares obtained from exercise Six months
Ma Wei, Wen commitment
commitment commitments and other shares) within six months after exercise
Zhaohui and strictly
after the exercise of the stock option
Xiang Wei
incentive plan in 2018.
Other commitments
to medium and
small shareholders
of the Company
Whether the
commitment was
Yes
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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2. If there is a profit forecast for the assets or projects of the Company and the reporting period is still in
the profit forecast period, the Company will explain why the assets or projects reached the original profit
forecast
□ applicable √ not applicable
II. Non-operating capital occupation of listed companies by controlling shareholders and their
related parties
□ applicable √ not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their related
parties in the reporting period of the Company.
III. External guarantee in violation of regulations
□ applicable √ not applicable
The Company had no external guarantee in violation of regulations during the reporting period.
IV. Explanation of the Board of Directors on the latest "non-standard audit report"
□ applicable √ not applicable
V. Description of the “non-standard audit report” of the Accounting Firm in the reporting
period by the Board of Directors, the Board of Supervisors and the independent directors (if
any)
□ applicable √ not applicable
VI. Descriptions of changes in accounting policy and accounting estimate or corrections of
major accounting errors in comparison with the financial report of the previous year
√ applicable □ not applicable
1. Descriptions of corrections of accounting errors in the previous period
In view of the Company's plan to split its holding subsidiary Shenzhen Yako Automation Technology Co.,
Ltd. (hereinafter referred to as Yakotec) for A-share listing, the Company found important early errors in the audit
process of share reform of Yakotec and made the following adjustments to its accounting based on the principle of
prudence in order to maintain the consistency of IPO audits:
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(1) Capitalization adjustment of research and development expenses
R&D projects of Yakotec are divided into research stage and development stage. Projects meeting R&D
capitalization conditions were capitalized in previous years. We made retroactive adjustments and expensed the
projects capitalized in the previous period in this audit.
(2) Adjustment of share-based payment
Yakotec granted equity to key employees through the shareholding platform. However, it was not recognized
as share-based payment, and the corresponding expenses were not accrued. According to the definition in the
Accounting Standards for Business Enterprises No.11 - Share-based Payment, share-based payment refers to the
transaction in which an enterprise grants equity instruments or undertakes liabilities determined on the basis of
equity instruments in order to obtain services from employees and other parties. Therefore, the equity granted to
employees by Yakotec was retroactively recognized as share-based payment, and the corresponding expenses
were adjusted and accrued. Corrections were made with the retroactive restatement method.
2. Influence of corrections of accounting errors in the previous period on the financial statement
(1) Specific impact on items in the consolidated balance sheet at the end of 2020:
Unit: Yuan
Items December 31, 2020
Amount of the report item before Adjustment amount Amount of the report item
adjustment after adjustment
Other current assets 68,175,222.37 2,121,222.39 70,296,444.76
Intangible assets 309,794,540.63 -30,514,971.23 279,279,569.40
Development expenditure 68,518,375.79 -5,656,596.57 62,861,779.22
Total assets 6,808,735,037.28 -34,050,345.41 6,774,684,691.87
Capital reserves 956,734,039.75 12,636,853.09 969,370,892.84
Undistributed profit 1,324,944,369.91 -19,061,969.80 1,305,882,400.11
Minority equity 84,992,151.43 -27,625,228.70 57,366,922.73
Net profit attributable to the 533,516,814.04 -1,355,690.40 532,161,123.64
parent company
Profits and losses of minority 17,678,270.05 -3,262,712.60 14,415,557.45
shareholders
According to the table above, other current assets increased by 2,121,222.39 yuan, intangible assets
decreased by 30,514,971.23 yuan, development expenditures decreased by 5,656,596.57 yuan, capital reserve
increased by 12,636,853.09 yuan, undistributed profits decreased by 19,061,969.80 yuan and interests in minority
shares decreased by 27,625,228.70 yuan in the consolidated balance sheet on December 31, 2020.
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(2) Specific impact on items in the consolidated income statement in 2020:
Unit: Yuan
Items 2020
Amount of the report item Adjustment amount Amount of the report item
before adjustment after adjustment
Management expenses 181,296,178.33 2,761,292.86 184,057,471.19
Research and development expenses 313,618,277.57 3,924,376.58 317,542,654.15
Operating profit 628,132,789.53 -6,685,669.44 621,447,120.09
Total profits 626,166,509.85 -6,685,669.44 619,480,840.41
Income tax expenses 74,971,425.76 -2,067,266.44 72,904,159.32
Net profit 551,195,084.09 -4,618,403.00 546,576,681.09
Net profit attributable to the parent 533,516,814.04 -1,355,690.40 532,161,123.64
company
Net profit attributable to minority 17,678,270.05 -3,262,712.60 14,415,557.45
shareholders
According to the table above, management expenses increased by 2,761,292.86 yuan, research and
development expenses increased by 3,924,376.58 yuan, operating profits decreased by 6,685,669.44 yuan, the
total profit decreased by 6,685,669.44 yuan, income tax expenses decreased by 2,067,266.44 yuan, and net profits
decreased by 4,618,403.00 yuan in the consolidated income statement in 2020.
(3) There was no impact on items in the balance sheet of the parent company at the end of 2020 and those in
the income statement of the parent company in 2020.
VII. Description of changes in the consolidated statements compared with the financial report of the
previous year
√ applicable □ not applicable
35 subsidiaries and sub-subsidiaries were included in this consolidated statement. See Note VIII (I) for
details. Nine new companies were included in the scope of consolidation during the reporting period, of which
seven were newly established subsidiaries or sub-subsidiaries and the other two were merged enterprises not under
the same control. See Note VII (III) for details.
VIII. Appointment and dismissal of accounting firms
Accounting firms currently employed
BAKER TILLY International Accounting Firm (Special General
Name of domestic accounting firms
Partnership)
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Remuneration of the domestic accounting firm (10,000 yuan) 80
Continuous years of audit services of the domestic accounting
3
firm
Name of the certified public accountant of the domestic
Chen Zhigang, Zhao Yang
accounting firm
Continuous years of audit services of the certified public
3
accountant of the domestic accounting firm
Whether to change the current employment of the accounting firm
□ Yes √ No
Employment of internal control audit accounting firm, financial consultant or sponsor
□ applicable √ not applicable
IX. Delisting after disclosure of the annual report
□ applicable √ not applicable
X. Matters related to bankruptcy reorganization
□ applicable √ not applicable
There were no matter related to bankruptcy reorganization during the reporting period.
XI. Major litigation and arbitration matters
□ applicable √ not applicable
The Company had no major litigation and arbitration matters during the reporting period.
XII. Punishment and rectification
□ applicable √ not applicable
The Company had no punishment or rectification during the reporting period.
XIII. Integrity condition of the Company, its controlling shareholders and actual controllers
□ applicable √ not applicable
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XIV. Major related transactions
1. Related transactions connected with the daily operation
□ applicable √ not applicable
The Company had no related transactions connected with daily operations during the reporting period.
2. Related transactions arising from acquisition and sale of assets or equity
□ applicable √ not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the reporting period.
3. Related transactions of joint foreign investment
□ applicable √ not applicable
The Company had no related transaction of joint foreign investment during the reporting period.
4. Related creditor’s right and debt transaction
□ applicable √ not applicable
The Company had no related creditor’s right and debt transaction during the reporting period.
5. Transactions with associated financial companies
□ applicable √ not applicable
There is no deposit, loan, credit extension or other financial business between the Company and its related
financial companies or between the related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ applicable √ not applicable
There was no deposit, loan, credit or other financial business between financial companies controlled by the
Company and related parties.
7. Other major related transactions
□ applicable √ not applicable
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The Company had no other major related transactions during the reporting period.
XV. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ applicable √ not applicable
The Company had no trusteeship during the reporting period.
(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
Unit: 1,0000 yuan
External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries)
Whether
Date of
the
disclosure of
Name of Guarantee Actual date Actual Counter Whether guarantee
the relevant Guarantee Collateral Guarantee
guarantee amount of guarantee guarantee it was objects
announcement type (if any) period
object limit occurrence amount (if any) completed were
of guarantee
related
amount limit
parties
Guarantee of the Company to its subsidiaries
Date of Whether
Name of Guarantee Actual date Actual Counter Whether
disclosure of Guarantee Collateral Guarantee the
guarantee amount of guarantee guarantee it was
the relevant type (if any) period guarantee
object limit occurrence amount (if any) completed
announcement objects
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of guarantee were
amount limit related
parties
The
tentative
guarantee
period
shall not
Joint exceed 5
Topband January 12,
19,000 liability years No No
Ningbo 2019
guaranty from the
date of
signing
the formal
guarantee
agreement
The
tentative
guarantee
period
shall not
Joint exceed 5
Topband October 20, November
22,000 22,000 liability years No No
Ningbo 2020 5, 2020
guaranty from the
date of
signing
the formal
guarantee
agreement
Total actual balance of
Total amount of approved
guarantee for
guarantee for subsidiaries
41,000 subsidiaries at the end 22,000
at the end of the reporting
of the reporting period
period (B3)
(B4)
Guarantee of the subsidiary to its subsidiary
Whether
Date of
the
disclosure of
Name of Guarantee Actual date Actual Counter Whether guarantee
the relevant Guarantee Collateral Guarantee
guarantee amount of guarantee guarantee it was objects
announcement type (if any) period
object limit occurrence amount (if any) completed were
of guarantee
related
amount limit
parties
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Total amount of the corporate guarantee (i.e. the sum of the first three items)
Total actual balance of
Total amount of guarantee
guarantee at the end of
approved at the end of the 41,000 22,000
the reporting period
reporting period (A3+B3+C3)
(A4+B4+C4)
The proportion of the total actual amount of
4.38%
guarantee (A4+B4+C4) in the Company’s net assets
Including:
Description of details of complex guarantee
3. Cash asset management entrusted by others
(1) Entrusted financial management
√ applicable □ not applicable
Overview of entrusted financial management during the reporting period
Unit: 1,0000 yuan
Accrued impairment
Capital source of Amount of entrusted Overdue amount amount of overdue and
Specific types Unexpired balance
entrusted financing financial management not recovered unrecovered wealth
management
Bank financial
Other 42,740 400 0 0
products
Total 42,740 400 0 0
Specific situation of high-risk entrusted financial management with the significant single amount or low security,
poor liquidity
□ applicable √ not applicable
Entrusted financial management was expected to be unable to recover the principal or there were other situations
that may lead to impairment
□ applicable √ not applicable
(2) Entrusted loans
□ applicable √ not applicable
There was no entrusted loan during the reporting period.
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4. Other major contracts
□ applicable √ not applicable
The Company had no other major contract during the reporting period.
XVI. Description of other major matters
√ applicable □ not applicable
1. Matters of the private issuing of stock in 2020
(1) On April 28, 2020, the 23rd Meeting of the 6th Board of Directors of the Company deliberated and
approved the Proposal on the Plan of the Company’s Private Issuing of Stock and other relevant proposals. It was
proposed to approve the private issuing of stock to raise funds of not more than 1.05 billion yuan, which would be
used for the Topband Huizhou No. 2 Industrial Park Project and the supplementary working capital.
(2) On May 20, 2020, the Company held the Annual General Meeting of Shareholders in 2019 to review and
approve the matter.
(3) On June 17, 2020, the Company issued "the announcement on Receiving the Acceptance Form of
Administrative License Application of the CSRC" and the CSRC accepted the Company’s application for the
private issuing of stock.
(4) On July 9, 2020, the Company issued “the announcement on receiving the Notice of the First Batches of
Feedbacks on the Review of the Administrative License Project of the CSRC”.
(5) On July 14, 2020, the Company replied to the feedback and announced the Reply to the Feedback of the
Application Document regarding the Private Issuing of Stock.
(6) On August 25, 2020, the Company issued the Announcement on the Approval and Reply of the CSRC for
the Private Issuing of Stock, and the application for this private issuing was approved with a reply by the CSRC.
(7) 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 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).
(8) On June 1, 2021, the Company issued the Report of Shenzhen Topband Co., Ltd. on the Issuance of
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Privately Issued A-Share Stocks and the Listing Announcement, and 92,105,263 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.
(9) The Company issued the Suggestive Announcement on the Listing and Circulation of Restricted Shares
Offered Non-publicly on December 1, 2021. 92,105,263 restricted shares were offered non-publicly and listed and
circulated on December 3, 2021.
For details, please check the announcements disclosed by the Company in the Securities Times and CNINFO
(http://www.cninfo.com.cn) on April 29, 2020, May 21, 2020, June 17, 2020, July 9, 2020, July 14, 2020, August
25, 2020, June 1, 2021, and December 3, 2021.
2. Restricted stock incentives in 2021
(1) The Company held the 13th (extraordinary) meeting of the 7th Board of Directors on September 20, 2021,
which reviewed and approved the Proposal on the Company's 2021 Restricted Stock Incentive Plan and agreed to
grant a total of no more than 34 million restricted shares to incentive objects.
(2) The Company held the 14th meeting of the 7th Board of Directors on October 13, 2021, which reviewed
and approved the Proposal on the Company's 2021 Restricted Stock Incentive Plan (Draft) and Its Abstract, the
Proposal on Administrative Measures for the Implementation and Evaluation of the Company's 2021 Restricted
Stock Incentive Plan, and the Proposal on Requesting the Shareholders' Meeting to Authorize the Board of
Directors to Handle Matters Related to the Company's 2021 Restricted Stock Incentive Plan and agreed to grant
34 million restricted shares to 1,250 incentive objects. The 11th meeting of the 7th Board of Supervisors of the
Company reviewed and approved the relevant proposal and checked the list of incentive objects under the
Incentive Plan. Independent directors expressed their independent opinions on this and lawyers issued legal
opinions.
(3) The Company publicized the names and positions in the list of incentive objects under the Incentive Plan
in the Company's internal OA office system on October 15, 2021. The publicity period was from October 15, 2021
to October 24, 2021.No organization or individual raised any objection to the list of incentive objects during the
publicity period. On October 26, 2021, the Company disclosed the Audit Opinions and Publicity Statement of the
Board of Supervisors on the List of Incentive Objects under the 2021 Restricted Stock Incentive Plan. The Board
of Supervisors of the Company believed that the proposed incentive objects under the Incentive Plan did not have
any situation making them incapable of being incentive objects according to relevant laws and regulations and met
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the participation qualification conditions for the scope of incentive objects under the Incentive Plan of the
Company.
(4) On November 1, 2021, the Company held the second extraordinary shareholders’ meeting, which
reviewed and approved the Proposal on the Company's 2021 Restricted Stock Incentive Plan (Draft) and Its
Abstract, the Proposal on Administrative Measures for the Implementation and Evaluation of the Company's 2021
Restricted Stock Incentive Plan, and the Proposal on Requesting the Shareholders' Meeting to Authorize the Board
of Directors to Handle Matters Related to the Company's 2021 Restricted Stock Incentive Plan and other relevant
proposals related to the Incentive Plan, and authorized the Board of Directors to determine the grant date under
the Incentive Plan, grant restricted shares to incentive objects when they met the conditions and handle all matters
required for the grant of restricted shares.
(5) On November 2, 2021, the Company held the 16th (extraordinary) meeting of the 7th Board of Directors,
which reviewed and approved the Proposal on Adjusting the Number of Stock Options Granted under the 2021
Restricted Stock Incentive Plan and List of Incentive Objects and the Proposal on Granting Restricted Shares to
Incentive Objects. In view of the demission of the incentive object Ou Li specified in the Incentive Plan and the
fact that Wang Cheng, Shen Zhiwen and Tian Conghui et al. voluntarily gave up the subscription of restricted
shares to be granted by the Company for personal reasons, the Board of Directors of the Company decided to
cancel the restricted shares to be granted to them. After the cancellation, the number of restricted shares to be
granted under the Incentive Plan was reduced from 34 million to 33.951 million, and the number of incentive
objects decreased from 1,250 to 1,246. November 2, 2021 was determined as the grant date, and 33.951 million
restricted shares were granted to 1,246 eligible incentive objects. The Board of Supervisors of the Company
reviewed the list of incentive objects, and independent directors expressed their independent opinions and lawyers
issued legal opinions.
(6) On December 7, 2021, the Company held the 17th (extraordinary) meeting of the 7th Board of Directors,
which reviewed and approved the Proposal on Adjusting the Number of Stock Options Granted under the 2021
Restricted Stock Incentive Plan and List of Incentive Objects. In view of the fact that 22 incentive objects such as
Li Xiang, Yu Dingguo and Lu Yuanshan specified in the Incentive Plan voluntarily gave up their subscription of
all the restricted shares granted to them for personal reasons and ten incentive targets such as Liao Xinmeng,
Wang Cao and Liu Xiaoshi voluntarily gave up their subscription of some of the restricted shares granted to them
for personal reasons in the process of capital payment before share registration after the Board of Directors of the
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Company confirmed November 2, 2021 as the grant date under the 2021 Restricted Stock Incentive Plan, the
Board of Directors of the Company adjusted the objects and the number of shares granted under the 2021
Restricted Stock Incentive Plan according to the authorization of the second extraordinary shareholders’ meeting
of the Company in 2021.After adjustment, the number of incentive objects under the 2021 Restricted Stock
Incentive Plan decreased from 1,246 to 1,224, and the number of restricted shares granted decreased from 33.951
million to 33.54432 million. The Board of Supervisors of the Company reviewed the list of incentive objects, and
independent directors expressed their independent opinions and lawyers issued legal opinions.
(7) On December 16, 2021, Shenzhen Stock Exchange and Shenzhen Branch of China Securities Depository
and Clearing Co., Ltd. confirmed that the Company had completed the grant registration of restricted shares (new
and repurchased) involved in the 2021 Restricted Stock Incentive Plan, which were listed on December 17, 2021.
XVII. Major matters of subsidiaries of the Company
√ applicable □ not applicable
1. On January 14, 2021, the 5th Meeting of the 7th Board of Directors 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. (hereinafter referred to as "Ninghui Lithium") 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.
3. On September 7, 2021, the Company invested in the establishment of a wholly-owned subsidiary,
Shenzhen Topband Automotive Electronics Co., Ltd. with a registered capital of 10 million yuan, which was
included in the scope of consolidated statements from the date of establishment.
4. On September 24, 2021, the Company increased the capital of Hong Kong Topband and set up Topband
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Intelligent Europe Company by investing abroad in Romania, and obtained the registration document issued by
Romania's National Business Registration Office. The wholly-owned sub-subsidiary in Romania has now
completed the registration.
5. On November 11, 2021, the Company increased the capital of Hong Kong Topband and set up Topband
Mexico Co., Ltd. by investing abroad in Mexico, and obtained the registration document issued by Mexico's
Public Business Registration Office. The wholly-owned sub-subsidiary in Mexico has now completed the
registration.
6. Shenzhen Topband Battery Co., Ltd. (hereinafter referred to as "Topband Lithium Battery"), a
wholly-owned subsidiary of the Company, signed an Investment Agreement and a Supplementary Agreement with
effective conditions with the Management Committee of Nantong Economic and Technological Development
Zone on December 7, 2021. The Company planned to set up a new company in Nantong, invest in the
construction of lithium battery projects with its own funds or self-raised funds, and purchase the plant asset at
No.69 Zhongyang Road, Nantong Economic and Technological Development Zone with the basic construction
completed for the construction of square aluminum shell cells, pouch cells, large cylindrical cells and battery
PACK production lines.
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Section VII Share Change and Shareholders
I. Share change
1. Share change
Unit: share
Before this change Increase and decrease of change this time (+, -) After this change
Conversion
Stock of
Issuance of Proportio
Quantity Proportion dividen accumulation Other Subtotal Quantity
new shares n
d fund into
shares
I. Shares with
non-tradable 198,249,297 17.46% 18,705,400 11,658,920 30,364,320 228,613,617 18.19%
conditions
1. Shares held by
0.00% 0.00%
the state
2. Shares held by
state-owned legal 0.00% 0.00%
persons
3. Shares held by
other domestic 198,249,297 17.46% 18,705,400 11,658,920 30,364,320 228,613,617 18.19%
capital
Including: shares
held by domestic 0.00% 0.00%
legal persons
Shares held by
domestic natural 198,249,297 17.46% 18,705,400 11,658,920 30,364,320 228,613,617 18.19%
persons
4. Shares held by
0.00% 0.00%
foreign investment
Including: shares
held by overseas 0.00% 0.00%
legal persons
Shares held by
overseas natural 0.00% 0.00%
persons
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II. Shares without
non-tradable 936,967,512 82.54% 92,105,263 -708,320 91,396,943 1,028,364,455 81.81%
conditions
1. RMB ordinary
936,967,512 82.54% 92,105,263 -708,320 91,396,943 1,028,364,455 81.81%
share
2. Domestic listed
0.00% 0.00%
foreign shares
3. Overseas listed
0.00% 0.00%
foreign shares
4. Other 0.00% 0.00%
III. Total number 1,135,216,80 110,810,66
100.00% 10,950,600 121,761,263 1,256,978,072 100.00%
of shares 9 3
Reasons for share change
√ applicable □ not applicable
The change in the company's share capital during the reporting period was due to the joint effect of the
following: the second exercising period of the stock option incentive plan in 2018 met the relevant conditions, and
the incentive objects increased by 10,950,600 shares through independent exercise; non-publicly issued shares
increased by 92,105,263 shares; according to the restricted stock incentive plan in 2021, 18,705,400 shares was
privately issued to some incentive objects.
Approval of share change
√ applicable □ not applicable
1. During the second exercising period of the company's stock option incentive plan in 2018, the
following decision-making procedures have been executed:
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
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exercisable stock options was 10,985,100. As of August 6, 2021, 10,950,600 stock options involving 567
incentive objects that meet the exercising conditions has been exercised, increasing the number of shares.
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
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 April 21, 2021 and May 10, 2021, the company held the eighth (extraordinary) meeting of the seventh
board of directors, the seventh (extraordinary) meeting of the seventh board of supervisors, and the first
extraordinary general meeting in 2021, reviewing and approving the Proposal on Requesting the General Meeting
of Shareholders to Extend the Validity Period of Authorizing the Company's Board of Directors to Handle Matters
Related to the Non-public Issuance of Shares in 2020, the Proposal on Extending the Validity Period of the
Resolutions of the General Meeting of Shareholders on the Non-public Issuance of Shares in 2020, and other
proposals related to the non-public offering of shares.
(3) 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.
3. According to the restricted stock incentive plan in 2021, the company has executed the following
decision-making procedures:
For details, please refer to "Section 6 Important Matters XVI: Explanation of Other Important Matters".
Transfer of share change
√ applicable □ not applicable
1. For the second exercise period of the 2018 stock option incentive plan, the exercise of 10,985,100 stock
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options was approved. As of the end of the reporting period, 10,950,600 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.
3. According to the restricted stock incentive plan in 2021, it was approved to issue 18,705,400 shares to
1,026 incentive objects. As of the end of the reporting period, 18,705,400 new restricted shares had been
registered in the names of each incentive object.
4. According to the restricted stock incentive plan in 2021, it was approved to grant 14,838,920 shares in the
company's special securities account for repurchase to 198 incentive objects. As of the end of the reporting period,
the 14,838,920 shares in the restricted stock repurchase portion had been registered in the names of each incentive
object.
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
For the impact of changes in shareholding on financial indicators such as the basic earnings per share, diluted
earnings per share, and net assets per share attributable to ordinary shareholders of the company in the last year
and the most recent period, please refer to Section X Financial Report XVIII: Supplementary Information 2.
Return on net assets and earnings per share in this Announcement.
Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory
institution
□ applicable √ not applicable
2. Changes in non-tradable shares
√ applicable □ not applicable
Unit: share
Number of Increase number Desterilization Number of
Name of Reasons for Date of lifting
non-tradable of non-tradable number of non-tradable
shareholder non-trading sales restriction
shares at the shares in the non-tradable shares at the end
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beginning of the current period shares in the of the period
period current period
Executives lock-in
Wu Yongqiang 159,006,536 0 0 159,006,536 Not applicable
shares
Executives lock-in
Ji Shuhai 24,613,981 0 4,125,000 20,488,981 Not applicable
shares
Executive lock-up Released from
shares and restricted trading
shares of restricted restrictions
Ma Wei 5,726,200 841,000 0 6,567,200
stock according to the
stock incentive
plan
Executive lock-up Released from
shares and restricted trading
shares of restricted restrictions
Peng Ganquan 2,922,674 670,000 0 3,592,674
stock according to the
stock incentive
plan
Executive lock-up Released from
shares and restricted trading
shares of restricted restrictions
Zheng Sibin 3,932,977 713,000 0 4,645,977
stock according to the
stock incentive
plan
Executive lock-up Released from
shares and restricted trading
shares of restricted restrictions
Wen Zhaohui 1,581,095 363,000 0 1,944,095
stock according to the
stock incentive
plan
Executive lock-up Released from
shares and restricted trading
shares of restricted restrictions
Dai Huijuan 239,709 0 0 239,709
stock according to the
stock incentive
plan
Executive lock-up Released from
shares and restricted trading
shares of restricted restrictions
Xiang Wei 226,125 273,000 0 499,125
stock according to the
stock incentive
plan
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Released from
Incentive objects trading
of restricted Stock-option-incentive restrictions
0 31,629,320 0 31,629,320
stock incentive restricted shares according to the
plan stock incentive
plan
Total 198,249,297 34,489,320 4,125,000 228,613,617 -- --
II. Issuance and listing of securities
1. Issuance of securities (excluding preferred shares) during the reporting period
√ applicable □ not applicable
Names of Number of
stocks and Issue price shares Transaction
Issued Date of
their Issuing date (or interest Listing date approved termination Disclosure index
quantity disclosure
derivative rate) for listing date
securities and trading
Stock category
Topband 2021/4/29 11.4 92,105,263 2021/06/03 92,105,263 http://www.cninfo.com.cn 2021/6/1
Topband 2021/12/16 7.23 18,705,400 2021/12/17 0 http://www.cninfo.com.cn 2021/12/16
Convertible bonds, separate-bargaining convertible bonds and corporation bonds
Other derivative securities
Explanation on the issuance of securities (excluding preferred shares) during the reporting period
1. Matters of the private issuing of stock in 2021
(1) Matters related to the company's non-public offering of shares in 2021 have been reviewed and approved
by the 23rd meeting of the 6th Board of Directors, the 8th (extraordinary) meeting of the 7th Board of Directors,
the 7th (extraordinary) meeting of the 7th Board of Supervisors, and the annual general meeting in 2019 and the
first extraordinary general meeting in 2021.
(2) On August 18, 2020, with the approval of the Reply on the Non-public Issuance of Shares by Shenzhen
Topband Co., Ltd. (ZJXK [2020] No. 186) issued by the China Securities Regulatory Commission, the company
adopted an inquiry method to privately issue 92,105,263 RMB common stocks (A-shares) to 14 investors.
(3) On June 3, 2021, with the approval of the Shenzhen Stock Exchange, the company's non-public issuance
of 92,105,263 new shares was listed on the Stock Exchange with a 6-month restricted stock trade period.
(4) On December 3, 2021, the restricted stock trade period of the company’s non-public offering of stocks
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
expired, and the company applied to the Shenzhen Stock Exchange and China Securities Depository and Clearing
Corporation Limited in November 2021 for the lifting of the sales restriction. The application was approved by
Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited, releasing a total of
92,105,263 shares from trading restrictions.
2. New stocks in the restricted stock incentive plan in 2021
(1) The restricted stock incentive plan in 2021 was reviewed and approved by the thirteenth (extraordinary)
meeting of the seventh board of directors, the fourteenth meeting of the seventh board of directors, the second
extraordinary general meeting of shareholders in 2021, the 16th (extraordinary) meeting of the seventh board of
directors, the 17th (extraordinary) meeting of the seventh board of directors, allowing to grant a total of
33,544,320 restricted shares to 1,224 incentive objects. Among them, 14,838,920 shares in the company's special
account for repurchase were issued to 198 incentive objects; 187,054 million new shares were issued to 1,026
incentive objects.
(2) On December 16, 2021, upon review and confirmation by the Shenzhen Stock Exchange and the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the company granted and
registered the 187,054 million restricted (new) shares involved in the restricted stock incentive plan in 2021, and
14,838,920 restricted (repurchased) shares. Those shares were listed on December 17, 2021.The restricted shares
granted by the incentive plan were locked up after the grant registration, and 30%, 30% and 40% were unlocked
from the first trading day after 12 months, 24 months, and 36 months since the grant date to the last trading day
within 24 months, 36 months, and 48 months since the grant date, respectively.
2. Description of changes in the total number of shares and shareholder structure of the Company and
changes in the structure of assets and liabilities of the Company
√ applicable □ not applicable
1. Changes in the total number of shares and shareholder structure:
During the reporting period, the stock option incentive in 2018 was exercised in the second period, adding
the capital stock of 10,950,600 shares and 92,105,263 non-publicly issued shares; according to the restricted stock
incentive plan in 2021, additional 18,705,400 shares was issued to incentive objects, jointly resulting in the
increase of the company’s general capital by 121,761,263 shares, namely, changing from 1,135,216,809 shares to
1,256,978,072 shares.
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Full text of Annual Report 2021 of Shenzhen Topband Co., Ltd.
2. Changes in the structure of assets and liabilities of the Company
As of the end of the period, the company's general capital was 1,256,978,072 shares, and the total assets
increased to 9,607,792,402.39 yuan, with the asset-liability ratio of 46.74%. At the end of 2020, the company's
total assets were 6,803,891,928.56 yuan, with the asset-liability ratio of 48.12%.
3. Existing situation of internal staff shares
□ applicable √ not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding situation of the Company
Unit: share
The total number
of preferred
shareholders
Total number of whose voting
Total number of
common rights were
Total number of preferred shareholders
shareholders at the restored at the
common shareholders with voting rights
63,350 end of the previous 89,748 0 end of the 0
at the end of the restored at the end of
month before the previous month
reporting period the reporting period (if
disclosure date of before the
any) (see Note 8)
the annual report disclosure date of
the annual report
(if any) (see Note
8)
Shareholding situation of shareholders holding more than 5% or top 10 shareholders
Number of Number of Pledge, marking or freezing
Increase and Number of
shares held shares
Nature of Shareholding decrease in shares without
Name of shareholder at the end of without
shareholders proportion the reporting non-tradable Share status Quantity
the reporting non-tradable
period conditions
period conditions
Domestic
Wu Yongqiang 16.87% 212,008,715 0 159,006,536 53,002,179 Pledge 36,010,000
natural person
Hong Kong Securities Overseas legal
7.77% 97,714,150 83,440,590 0 97,714,150
Clearing Company Ltd. person
Domestic
Ji Shuhai 2.17% 27,318,642 0 20,488,981 6,829,661
natural person
Xie Renguo Domestic 1.68% 21,149,588 4,543,788 0 21,149,588
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natural person
Agricultural Bank of
China Limited - Cathay
Pacific Smart Car Other 1.48% 18,657,912 18,657,912 0 18,657,912
Equity Securities
Investment Fund
First State Investment
Management (UK)
Limited - First State Overseas legal
1.43% 17,948,155 -9,508,200 0 17,948,155
Global Umbrella Fund: person
First State Greater
China Growth Fund
Industrial and
Commercial Bank of
China Limited - China
Europe Times Pioneer Other 1.26% 15,899,200 15,899,200 0 15,899,200
Stock Initiated
Securities Investment
Fund
China Construction
Bank Corporation -
China Europe Mingrui
Other 0.94% 11,805,300 11,805,300 0 11,805,300
New Normal Hybrid
Securities Investment
Fund
Bank of China Limited -
Cathay Pacific
Intelligent Equipment Other 0.85% 10,692,650 10,692,650 0 10,692,650
Equity Securities
Investment Fund
Basic Endowment
Insurance Fund 1206 Other 0.84% 10,576,756 10,576,756 0 10,576,756
Portfolio
The top 10 shareholders of strategic
investors or general legal persons due to
Not applicable
placement of new shares (if any) (see
Note 3)
Except for Agricultural Bank of China Limited - Cathay Pacific Smart Car Equity Securities Investment
Fund and Bank of China Limited - Cathay Pacific Intelligent Equipment Equity Securities Investment
Description of the above shareholders’
Fund, which are managed by the same fund manager, and Industrial and Commercial Bank of China
relationship or concerted action
Limited - China Europe Times Pioneer Stock Initiated Securities Investment Fund and China
Construction Bank Corporation - China Europe Mingrui New Normal Hybrid Securities Investment
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Fund, which are managed by the same fund manager, the company does not know whether there is an
associated relationship between other shareholders or whether it falls under the “persons acting in
concert” specified in the Measures for the Administration on Acquisition of Listed Companies.
Description of the above shareholders'
entrusting / entrusted voting rights and Not applicable
waiver of voting rights
Special explanations for the existence of
special repurchase accounts among the Not applicable
top 10 shareholders (if any) (see Note 11)
Shareholding of the top 10 shareholders without non-tradable conditions
Number of shares held without non-tradable conditions at the Types of shares
Name of shareholder
end of the reporting period Types of shares Quantity
Hong Kong Securities Clearing Company
97,714,150 RMB ordinary share 97,714,150
Ltd.
Wu Yongqiang 53,002,179 RMB ordinary share 53,002,179
Xie Renguo 21,149,588 RMB ordinary share 21,149,588
Agricultural Bank of China Limited -
Cathay Pacific Smart Car Equity 18,657,912 RMB ordinary share 18,657,912
Securities Investment Fund
First State Investment Management (UK)
Limited - First State Global Umbrella
17,948,155 RMB ordinary share 17,948,155
Fund: First State Greater China Growth
Fund
Industrial and Commercial Bank of China
Limited - China Europe Times Pioneer
15,899,200 RMB ordinary share 15,899,200
Stock Initiated Securities Investment
Fund
China Construction Bank Corporation -
China Europe Mingrui New Normal 11,805,300 RMB ordinary share 11,805,300
Hybrid Securities Investment Fund
Bank of China Limited - Cathay Pacific
Intelligent Equipment Equity Securities 10,692,650 RMB ordinary share 10,692,650
Investment Fund
Basic Endowment Insurance Fund 1206
10,576,756 RMB ordinary share 10,576,756
Portfolio
Shanghai Pudong Development Bank
Co., Ltd. - China Europe Innovation
9,623,700 RMB ordinary share 9,623,700
18-month Closed Operation Hybrid
Securities Investment Fund
Description of the relationship or Except for Agricultural Bank of China Limited - Cathay Pacific Smart Car Equity Securities Investment
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concerted action between the top 10 Fund and Bank of China Limited - Cathay Pacific Intelligent Equipment Equity Securities Investment
shareholders with unlimited tradable Fund, which are managed by the same fund manager, and Industrial and Commercial Bank of China
shares and between the top 10 Limited - China Europe Times Pioneer Stock Initiated Securities Investment Fund, China Construction
shareholders with unlimited tradable Bank Corporation - China Europe Mingrui New Normal Hybrid Securities Investment Fund and
shares and the top 10 shareholders Shanghai Pudong Development Bank Co., Ltd. - China Europe Innovation 18-month Closed Operation
Hybrid Securities Investment Fund, which are managed by the same fund manager, the company does
not know whether there is an associated relationship between other shareholders or whether it falls
under the “persons acting in concert” specified in the Measures for the Administration on Acquisition of
Listed Companies.
Description of the participation of the top
10 common shareholders in securities Not applicable
margin trading (if any) (see Note 4)
Whether the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions
have conducted the agreed repurchase transactions during the reporting period
□ Yes √ No
The top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions did not
carry out the agreed repurchase transaction during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholder: controlling by natural person
Type of controlling shareholder: natural person
Whether the right of residence in other countries or regions was
Name of controlling shareholder Nationality
obtained
Wu Yongqiang China No
Since 2009, holding the post of the Chairman and General Manager of Shenzhen
Main position and occupation
Topband Co., Ltd.
Equity of other domestic and foreign listed
companies holding shares or participating in None
shares during the reporting period
Change of controlling shareholders during the reporting period
□ applicable √ not applicable
The controlling shareholder of the Company did not change during the reporting period.
3. The actual controller of the Company and the person acting in concert
Nature of actual controller: foreign natural person
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Type of actual controller: natural person
Relationship with actual Whether the right of residence in other countries
Name of actual controller Nationality
controller or regions was obtained
Wu Yongqiang Oneself China No
Since 2009, holding the post of the Chairman and General Manager of Shenzhen Topband Co.,
Main position and occupation
Ltd.
Situation of listed companies both at
home and abroad that have been held None
in the past 10 years
Change of actual controller during the reporting period
□ applicable √ not applicable
The actual controller of the Company did not change during the reporting period.
Block Diagram of Property Rights and Control Relationship between the Company and the Actual Controller
Wu Yongqiang
Shenzhen Topband Co., Ltd.
The actual controller controlled the Company through trust or other asset management methods
□ applicable √ not applicable
4. The accumulative pledged shares of the company's controlling shareholder or the first majority
shareholder and its persons acting in concert account for 80% of the total shares.
□ applicable √ not applicable
5. Other corporate shareholders holding more than 10% shares
□ applicable √ not applicable
6. Limited reduction of shares of controlling shareholders, actual controllers, reorganizers and other
committed entities
□ applicable √ not applicable
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IV. The specific implementation of targeted share repurchase during the reporting period
Implementation progress of share repurchase
□ applicable √ not applicable
Progress in the implementation of the reduction of share repurchase through centralized bidding
□ applicable √ not applicable
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Section VIII Information on Preferred Shares
□ applicable √ not applicable
The Company did not have preferred shares during the reporting period.
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Section IX Relevant Information of Bonds
□ applicable √ not applicable
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Section X Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date of signing of audit report March 18, 2022
BAKER TILLY International Accounting Firm (Special General
Name of audit Institution
Partnership)
Document number of audit report TZYZ [2022] No. 12262
Name of certified public accountant Chen Zhigang, Zhao Yang
Text of audit report
TZYZ [2022] No. 12262
All shareholders of Shenzhen Topband Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Shenzhen Topband Co., Ltd. (hereinafter referred to as "Topband
Company"), including the consolidated and parent company's balance sheets as of December 31, 2021, the
consolidated and parent company's income statements, the consolidated and parent company's cash flow
statements and the consolidated and parent company's statements of changes in shareholders' equity for 2021, and
the relevant notes to the financial statements.
In our opinion, the attached financial statements prepared in all material respects in accordance with the
Accounting Standards for Business Enterprises fairly reflect the consolidated and parent company's financial
position as of December 31, 2021, and the consolidated and parent company's operating results and cash flows for
2021.
II. Basis for the Formation of the Audit Opinion
We have carried out the audit according to the Audit Standards for Chinese Certified Public Accountants.
Our responsibility under these standards is further described in “Certified Public Accountants’ Responsibility for
the Financial Statements” in the audit report. According to the Code of Professional Ethics of Chinese Certified
Public Accountants, we are independent from Topband Company and have performed other responsibilities in
terms of professional ethics. We believe that the audit evidence obtained by us is sufficient and appropriate and
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has provided a basis for the expression of our audit opinion.
III. Key Audit Matters
Key audit matters are those which, in our professional judgment, we deem to be the most important for the
audit of the financial statements for the current period. These matters shall be handled in the context of the audit
of the financial statements as a whole and the formation of an audit opinion, and we do not separately express an
opinion on these matters.
Key Audit Matters How are the matter handled in the audit
1. Revenue recognition
In 2021, the operating income of Topband The main audit procedures we have carried out for
Company is 7,767,034,800 yuan. Considering that revenue recognition include, but are not limited to the
operating income is a key operating indicator of following:
the Topband Company, whether the sales revenue
(1) Understand, evaluate and test the effectiveness of the
of products is included in the appropriate
design and operation of internal control related to the sales and
accounting period may be potentially misstated, so
collection of Topband Company;
we regard the recognition of operating income as a
key audit matter. (2) Understand revenue recognition policies through
interviews with the management, check relevant terms of
Please refer to the accounting policies
major customer contracts, analyze and evaluate whether the
described in "(28) Income" in "III. Important
revenue recognition policies actually implemented are
Accounting Policies and Accounting Estimates",
appropriate, and recheck whether relevant accounting policies
"(41) Operating Income and Operating Cost" in
are consistently used;
"VI. Notes to Items in the Consolidated Financial
Statements" and "(4) Operating Income and (3) Inquire and understand the background information of
Operating Cost" in "XVII. Annotations to Major major customers or new customers through open channels,
Items in the Parent Company's Financial such as industrial and commercial registration information,
Statements" in the notes to the financial and confirm whether there is any potential unidentified related
statements. party relationship between major customers and Topband
Company and its related parties;
(4) Analyze the rationality of changes in the sales
structure of major products, compare with the gross profit rate
in the same period in history and in the same industry, analyze
changes in the gross profit rate of major products and major
customers, and recheck the rationality of sales revenue;
(5) Verify the balance of accounts receivable of major
customers in combination with the audit of accounts
receivable, and perform substitution tests for customers who
did not reply;
(6) Take samples to check the relevant documents of
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sales revenue transactions, such as sales contracts (orders),
delivery notes, receipts (warehouse receipts), customs
declarations, statements of account and sales invoices, so as to
verify whether the confirmed sales revenue is true;
(7) Spot-check sales revenue transactions recorded before
and after the balance sheet date to check the supporting
vouchers of revenue recognition under each mode, so as to
evaluate whether sales revenue is recorded in the appropriate
accounting period.
Audit Report (Continued)
TZYZ [2022] No. 12262
Key Audit Matters How are the matter handled in the audit
2. Impairment of accounts receivable
At the end of 2021, the book value of The main audit procedures we have carried out for the
accounts receivable of Topband Co., Ltd. was impairment of accounts receivable include, but are not limited
2,188,161,500 yuan. Due to the large book value to the following:
of accounts receivable, the assessment of bad-debt
(1) Understand, evaluate and test the effectiveness of the
provision involved significant accounting
design and operation of internal control related to the credit
estimates and judgments of the management.
policy and accounts receivable management of Topband
Therefore, the bad-debt provision for accounts
Company;
receivable was regarded as a key audit item.
(2) Analyze the rationality of the accounting policies for
Please refer to the accounting policies
the bad debt provision of accounts receivable, including the
described in "(11) Receivables" in "III. Important
basis for determining the combination of accounts receivable,
Accounting Policies and Accounting Estimates",
the expected credit loss rate, the judgment of a single item
"(4) Accounts Receivable "in "VI. Notes to Items
with a significant amount, the judgment of a single item with
in the Consolidated Financial Statements" and "(1)
bad debt provision, and check whether it conforms to relevant
Receivables" in "XVII. Notes to Major Items in
accounting policies;
the Parent Company's Financial Statements" in the
notes to the financial statements. (3) Obtain the aging analysis table and bad debt provision
table of accounts receivable, analyze and check the rationality
and accuracy of the aging division and bad debt provision of
accounts receivable;
(4) Analyze and calculate the ratio between the amount of
bad debt provision and the balance of accounts receivable on
the balance sheet date, compare the amount of previous bad
debt provision and the actual amount incurred, and analyze
whether the amount of bad debt provision of accounts
receivable is sufficient;
(5) Analyze the rationality of the scale of accounts
receivable of major customers in combination with the credit
period of accounts receivable. At the same time, understand
the reasonable cause for the accounts receivable beyond the
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credit period, so as to identify whether there is any situation
that affects the assessment result of bad debt provision for
accounts receivable of Topband Company.
IV. Other Information
The management of Topband Company (hereinafter referred to as the "Management") is responsible for other
information. Other information includes information covered in the 2021 Annual Report, but does not include the
financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information, nor do we issue any form of
authentication conclusions on other information.
In conjunction with our audit of the financial statements, it is our responsibility to read other information and,
in doing so, consider whether other information is materially inconsistent or appears to be materially misstated
with the financial statements or what we have learned in the course of our audit. Based on the work we have
performed, if we determine that there is a material misstatement of other information, we shall report that fact. In
this regard, we have nothing to report.
V. Responsibilities of the Management and the Governance Body for Financial
Statements
The Management is responsible for preparing the financial statements in accordance with the Accounting
Standards for Business Enterprises, causing them to realize fair presentation and designing, implementing and
maintaining necessary internal control so that the financial statements contain no misstatement caused by fraud or
errors.
When the financial statements were prepared, the Management was responsible for assessing Topband
Company’s ability to continue as a going concern, disclosing the matters related to the going concern (if
applicable) and applying the going concern assumption unless the Management planned to conduct liquidation,
terminated operation or had no other practical option.
The Governance Body is responsible for overseeing the financial reporting process of Topband Company.
V. Responsibilities of Certified Public Accountants for Auditing the Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statements contain no
misstatement caused by fraud or errors on the whole and to issue an audit report including an audit opinion.
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Reasonable assurance is a high level of assurance, but cannot guarantee that a certain material misstatement can
always be detected in an audit carried out according to audit standards. A misstatement may be caused by fraud or
errors. Misstatements are generally deemed to be material if it is reasonably expected that they may, individually
or collectively, influence the economic decisions made by the users of the financial statements according to the
financial statements.
We have exercised our professional judgment and maintained our professional skepticism in carrying out the
audit according to audit standards. At the same, we have carried out the following work:
(1) We have identified and assessed the risks of material misstatements caused by fraud or errors in the
financial statements; have designed and implemented audit procedures to cope with such risks; and have obtained
sufficient and appropriate audit evidence as a basis for the expression of the audit opinion. Because fraud may
involve collusion, falsification, intentional omission, misrepresentation or precedence over internal control, the
risk of failure to detect material misstatements caused by fraud is higher than the risk of failure to detect material
misstatements caused by errors.
(2) We have understood the internal control related to the audit to design appropriate audit procedures, but
our purpose is not to express our opinion on the effectiveness of internal control.
(3) We have evaluated the appropriateness of the accounting polices chosen by the Management and the
reasonableness of the accounting estimates and relevant disclosure made by it.
(4) We have reached a conclusion on the appropriateness of the use of the going concern assumption. At the
same time, according to the received audit evidence, we have reached a conclusion on the existence or
non-existence of material uncertainty about any matter or situation that may cast considerable doubt on Topband
Company's ability to continue as a going concern. If our conclusion is that material uncertainty exists, the audit
standards require us to bring relevant disclosure in the financial statements to the attention of the users of the
statements in the audit report; if such disclosure is inadequate, we shall express a non-unqualified opinion. Our
conclusion is based on the information that was available as of the date of the audit report. However, future
matters or situations may cause Topband Company to lose the ability to continue as a going concern.
(5) We have evaluated the overall presentation, structure and content of the financial statements and have
evaluated whether the financial statements fairly present relevant transactions and matters.
(6) We have obtained sufficient and appropriate audit evidence for the financial information on the entity or
business activities of Topband Company to express our audit opinion on the financial statements. We are
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responsible for guiding, supervising and implementing the group’s audit and bear full responsibility for the audit
opinion.
We have communicated with the Governance Body about the planned audit scope, timing and significant
audit discovery, including internal control defects identified by us in the audit and deserving attention.
We have also provided the Governance Body with a statement that we have complied with the professional
ethics requirements relating to our independence and have communicated with the Governance Body about all
relationships and other matters that may reasonably be believed to affect our independence, as well as relevant
precautions.
From the issues we have communicated with the Governance Body, we have determined which issues are the
most important to the audit of the financial statements for the current period and thus constitute key audit matters.
We describe these matters in our audit report, unless laws and regulations prohibit public disclosure of such
matters or, in rare circumstances, we determine that we shall not communicate a certain matter in our audit report
if it is reasonably expected that the negative consequences of communicating such matter in our audit report will
exceed the benefits derived in the public interest.
Beijing, China
Chinese Certified Public Accountants:
March 18, 2022
(Project Partners)
Chinese Certified Public Accountants:
II. Financial Statements
The unit of statements in the financial notes is: Yuan (RMB)
1. Consolidated balance sheet
Prepared by: Shenzhen Topband Co., Ltd.
December 31, 2021
Unit: Yuan
Items December 31, 2021 December 31, 2020
Current assets:
Monetary capital 1,767,580,056.07 1,219,095,476.50
Settlement of provisions
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Loans to other banks
Tradable financial assets 214,999,336.74 226,491,482.10
Derivative financial assets
Notes receivable 161,659,470.21 39,477,930.63
Accounts receivable 2,188,161,465.48 1,701,111,153.84
Receivables financing 36,902,507.85 246,656,027.27
Prepayments 41,320,285.02 17,735,229.99
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 50,156,221.82 40,728,126.64
Including: interest receivable
Dividends receivable
Repurchase of financial assets for
resale
Inventory 2,184,402,766.04 1,115,312,868.62
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 113,071,619.93 70,296,444.76
Total current assets 6,758,253,729.16 4,676,904,740.35
Non-current assets:
Loans and advances granted
Debt investment 0.00
Other debt investment
Long-term receivables
Long-term equity investment 26,119,127.82 6,502,528.13
Other equity instrument investment
Other non-current financial assets
Investment property 86,975,114.31 89,238,265.71
Fixed assets 1,299,517,887.54 1,096,875,640.94
Construction in progress 495,248,025.93 292,474,798.41
Productive biological assets
Oil and gas assets
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Right-of-use assets 58,168,151.88
Intangible assets 435,639,773.29 279,279,569.40
Development expenditure 66,358,407.48 62,861,779.22
Goodwill 110,732,042.84 108,637,368.48
Long-term deferred expenses 95,151,616.38 72,077,671.09
Deferred tax assets 102,787,097.36 55,192,974.75
Other non-current assets 72,041,428.40 34,639,355.39
Total non-current assets 2,848,738,673.23 2,097,779,951.52
Total assets 9,606,992,402.39 6,774,684,691.87
Current liabilities:
Short-term loans 409,531,107.26 402,151,500.00
Borrowing money from the central
bank
Borrowed funds
Trading financial liabilities
Derivative financial liabilities
Notes payable 1,231,106,148.24 715,574,653.91
Accounts payable 1,511,284,996.56 1,549,906,339.72
Advance receipt 353,895.16 487,267.17
Contractual liabilities 93,328,006.70 72,576,117.56
Financial assets sold for repurchase
Deposit absorption and interbank
deposit
Acting trading securities
Acting underwriting securities
Employee compensation payable 198,863,796.02 175,503,764.12
Taxes payable 16,254,542.45 60,256,015.60
Other payables 318,632,275.66 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 47,721,695.74
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year
Other current liabilities 107,064,543.82
Total current liabilities 3,934,141,007.61 3,033,616,274.01
Non-current liabilities
Insurance contract reserve
Long-term loans 475,020,000.00 200,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 40,290,402.14
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income 14,385,200.00 14,624,770.00
Deferred tax liabilities 26,280,456.34 11,819,861.30
Other non-current liabilities
Total non-current liabilities 555,976,058.48 226,444,631.30
Total liabilities 4,490,117,066.09 3,260,060,905.31
Owner's equity:
Share capital 1,256,978,072.00 1,135,216,809.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2,140,053,149.74 969,370,892.84
Minus: treasury shares 242,525,433.60 80,017,965.68
Other comprehensive income -91,831,496.88 -24,555,229.97
Special reserve
Surplus reserves 186,397,631.76 151,359,957.53
General risk provision
Retained Earnings 1,779,243,483.61 1,305,882,400.11
Total owner's equity attributable to the
5,028,315,406.63 3,457,256,863.83
parent company
Minority equity 88,559,929.67 57,366,922.73
Total owners' equity 5,116,875,336.30 3,514,623,786.56
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Total liabilities and owners' equity 9,606,992,402.39 6,774,684,691.87
Legal Representative: Wu Yongqiang Accounting Head: Xiang Wei Accounting Department Head: Luo Muchen
2. Balance sheet of the parent company
Unit: Yuan
Items December 31, 2021 December 31, 2020
Current assets:
Monetary capital 1,110,855,192.86 705,163,083.52
Tradable financial assets 187,011,836.74 102,133,982.10
Derivative financial assets
Notes receivable 50,356,382.14 6,939,021.98
Accounts receivable 1,496,921,254.34 896,265,475.70
Receivables financing 13,909,195.16 217,543,679.19
Prepayments 11,308,739.07 6,953,106.28
Other receivables 141,619,648.22 41,159,647.12
Including: interest receivable
Dividends receivable
Inventory 343,548,795.39 209,965,269.91
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 14,074,292.52 12,054,327.33
Total current assets 3,369,605,336.44 2,198,177,593.13
Non-current assets:
Debt investment 0.00
Other debt investment
Long-term receivables
Long-term equity investment 2,947,556,465.89 2,200,934,231.94
Other equity instrument investment
Other non-current financial assets
Investment property
Fixed assets 145,229,190.35 120,829,877.70
Construction in progress 6,486,761.99 2,392,458.84
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Productive biological assets
Oil and gas assets
Right-of-use assets 554,157.99
Intangible assets 161,311,708.12 132,732,792.93
Development expenditure 43,638,980.21 44,248,718.56
Goodwill
Long-term deferred expenses 20,573,462.40 27,739,322.93
Deferred tax assets 55,938,073.37 27,692,977.98
Other non-current assets 8,160,527.96 6,997,597.90
Total non-current assets 3,389,449,328.28 2,563,567,978.78
Total assets 6,759,054,664.72 4,761,745,571.91
Current liabilities:
Short-term loans 153,591,779.50 102,151,500.00
Trading financial liabilities
Derivative financial liabilities
Notes payable 990,389,640.00 696,684,142.33
Accounts payable 368,537,246.64 471,203,775.42
Advance receipt
Contractual liabilities 37,061,438.92 29,103,190.50
Employee compensation payable 105,820,526.01 91,953,399.79
Taxes payable 10,652,318.75 28,211,920.73
Other payables 568,675,865.75 299,042,515.61
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
326,602.76
year
Other current liabilities 38,799,661.21
Total current liabilities 2,273,855,079.54 1,718,350,444.38
Non-current liabilities
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
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Lease liabilities 221,776.58
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income 9,053,500.00 10,535,500.00
Deferred tax liabilities 20,935,893.00 8,106,676.00
Other non-current liabilities
Total non-current liabilities 30,211,169.58 18,642,176.00
Total liabilities 2,304,066,249.12 1,736,992,620.38
Owner's equity:
Share capital 1,256,978,072.00 1,135,216,809.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2,189,685,216.22 1,007,315,299.41
Minus: treasury shares 242,525,433.60 80,017,965.68
Other comprehensive income 370,109.41 5,569,575.04
Special reserve
Surplus reserves 186,369,113.30 151,331,439.07
Undistributed profit 1,064,111,338.27 805,337,794.69
Total owners' equity 4,454,988,415.60 3,024,752,951.53
Total liabilities and owners' equity 6,759,054,664.72 4,761,745,571.91
3. Consolidated income statement
Unit: Yuan
Items 2021 2020
I. Total operating income 7,767,034,835.03 5,560,182,998.21
Including: operating income 7,767,034,835.03 5,560,182,998.21
Interest income
Premium earned
Service charge and
commission income
II. Total operating costs 7,124,228,676.16 5,037,468,985.99
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Including: Operating cost 6,114,531,354.87 4,204,293,830.77
Interest expense
Service charge and commission
payment
Surrender value
Net compensation expenditure
Net reserve amount set aside for
insurance liability contracts
Policy dividend payment
Reinsurance expenses
Taxes and surcharges 29,053,867.71 21,690,582.69
Sales expenses 208,562,819.10 132,898,433.70
Management expenses 258,345,031.89 184,057,471.19
Research and development
449,950,052.11 317,542,654.15
expenses
Finance charges 63,785,550.48 176,986,013.49
Including: Interest expenses 24,677,917.47 41,611,921.13
Interest income 8,722,530.08 7,457,090.20
Plus: other income 26,208,046.69 35,265,593.47
Return on investment (loss
54,827,083.25 258,578,241.24
marked with "-")
Including: income from
investment in associated -2883,400.31 -360,946.80
enterprises and joint ventures
Income from derecognition of
financial assets measured at
amortized cost
Exchange gains (loss marked
with "-")
Net exposure hedge gain (loss
marked with "-")
Loss from fair value change
85,670,316.15 -105,561,454.64
(income marked with “-”)
Credit impairment loss (loss
-85,593,629.08 10,647,224.22
marked with "-")
Asset impairment loss (loss
-99,995,344.56 -99,263,678.59
marked with "-")
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Income from disposal of assets
-404,389.75 -932,817.83
(loss marked with "-")
III. Operating profit (loss marked with
623,518,241.57 621,447,120.09
"-")
Plus: non-operating income 2,260,355.74 3,091,552.14
Minus: non-operating expenses 5,538,292.94 5,057,831.82
IV. Total profit (total loss marked with
620,240,304.37 619,480,840.41
"-")
Minus: income tax expense 48,127,689.76 72,904,159.32
V. Net profit (net loss marked with "-") 572,112,614.61 546,576,681.09
(I) Classification according to
business continuity
1. Net profit from continuing
572,112,614.61 546,576,681.09
operation (net loss marked with "-")
2. Net profit from termination of
operation (net loss marked with "-")
(II) Classification according to
ownership
1. Net profit attributable to the
564,964,282.18 532,161,123.64
shareholders of the parent company
2. Profits and losses of minority
7,148,332.43 14,415,557.45
shareholders
VI. Net after-tax amount of other
-67,276,266.91 -21,495,467.91
comprehensive income
Net after-tax amount of other
comprehensive income attributable -67,276,266.91 -21,495,467.91
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
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4. Changes in fair value of the
enterprise's own credit risk
5. Others
(II) Other comprehensive income
that is reclassified into profits and -67,276,266.91 -21,495,467.91
losses
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 -62,076,801.28 -27,065,042.95
statements
7. Others -5,199,465.63 5,569,575.04
Net after-tax amount of other
comprehensive income attributable
to minority shareholders
VII. Total comprehensive income 504,836,347.70 525,081,213.18
Total consolidated income
attributable to the owners of the 497,688,015.27 510,665,655.73
parent company
Total consolidated income
7,148,332.43 14,415,557.45
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.47 0.51
(II) Diluted earnings per share 0.47 0.51
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 0.00 yuan, and the net profit realized by the combined party in the previous
period is 0.00 yuan.
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Legal Representative: Wu Yongqiang Accounting Head: Xiang Wei Accounting Department Head: Luo Muchen
4. Income statement of the parent company
Unit: Yuan
Items 2021 2020
I. Operating income 4,564,044,890.75 3,382,368,020.38
Minus: operating cost 3,792,141,796.05 2,795,048,150.10
Taxes and surcharges 12,625,707.59 9,802,314.00
Sales expenses 130,293,799.46 85,887,555.58
Management expenses 151,795,451.87 116,464,465.35
Research and development
186,514,426.05 139,910,160.61
expenses
Finance charges 37,274,271.38 137,498,249.51
Including: Interest expenses 12,147,542.62 34,251,784.01
Interest income 5,763,930.72 5,563,022.74
Plus: other income 8,563,323.92 19,920,775.54
Return on investment (loss
69,299,464.03 260,450,508.23
marked with "-")
Including: income from
investment in associated -527,468.28 -360,946.80
enterprises 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
0.00 0.00
marked with "-")
Loss from fair value change
85,670,316.15 -105,561,454.64
(income marked with “-”)
Credit impairment loss (loss
-12,263,755.40 12,890,980.63
marked with "-")
Asset impairment loss (loss
-8,393,828.43 -6,126,212.74
marked with "-")
Income from disposal of assets
870,158.85 -286,627.68
(loss marked with "-")
II. Operating profit (loss marked with
397,145,117.47 279,045,094.57
"-")
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Plus: non-operating income 406,354.97 2,033,271.44
Minus: non-operating expenses 3,621,199.53 2,747,958.93
III. Total profit (total loss marked with
393,930,272.91 278,330,407.08
"-")
Minus: income tax expense 43,553,530.65 37,572,949.14
IV. Net profit (net loss marked with "-") 350,376,742.26 240,757,457.94
(I) Net profit from continuing
operation (net loss marked with 350,376,742.26 240,757,457.94
"-")
(II) Net profit from termination of
operation (net loss marked with
"-")
V. Net after-tax amount of other
-5,199,465.63 5,569,575.04
comprehensive income
(I) Other comprehensive income
that cannot be reclassified into 0.00 0.00
profits or losses
1. Remeasurement of changes
0.00 0.00
in defined benefit plans
2. Other comprehensive
income that cannot be
0.00 0.00
transferred to 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
0.00 0.00
enterprise's own credit risk
5. Others 0.00 0.00
(II) Other comprehensive income
that is reclassified into profits and -5,199,465.63 5,569,575.04
losses
1. Other comprehensive
income transferable to profits
0.00 0.00
and losses under the equity
method
2. Changes in the fair value of
0.00 0.00
other debt investments
3. Amount of financial assets 0.00 0.00
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reclassified into other
comprehensive income
4. Provision for credit
impairment of other debt 0.00 0.00
investment
5. Cash flow hedge reserve 0.00 0.00
6. Difference in translation of
foreign-currency financial 0.00 0.00
statements
7. Others -5,199,465.63 5,569,575.04
VI. Total comprehensive income 345,177,276.63 246,327,032.98
VII. Earnings per share:
(I) Basic earnings per share 0.28 0.23
(II) Diluted earnings per share 0.28 0.23
5. Consolidated cash flow statement
Unit: Yuan
Items 2021 2020
I. Cash flow from operating activities:
Cash received from selling goods
7,379,366,133.60 5,029,358,595.65
and providing services
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
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repurchase operations
Net cash received for acting trading
securities
Tax rebates received 408,342,014.70 236,631,627.27
Receipt of other cash related to
89,743,482.16 99,560,021.46
operating activities
Subtotal of cash inflow from operating
7,877,451,630.46 5,365,550,244.38
activities
Cash paid for purchasing goods and
6,328,279,127.11 3,505,711,340.07
accepting services
Net increase in customer loans and
advances
Net increase in deposits with
central banks and interbanks
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 1,315,339,474.82 915,077,720.87
Various taxes paid 156,592,618.79 113,556,882.14
Other cash paid in connection with
301,802,955.60 183,303,592.92
operating activities
Subtotal of cash outflow from operating
8,102,014,176.32 4,717,649,536.00
activities
Net cash flow from operating activities -224,562,545.86 647,900,708.38
II. Cash flow from investing activities:
Cash received from investment
526,447,603.26 591,409,909.06
recovery
Cash received as return on an
57,710,483.56 235,969,188.04
investment
Net cash recovered from the
disposal of fixed assets, intangible 6,913,824.99 1,738,744.68
assets and other long-term assets
Net cash recovered from the
disposal of subsidiaries and other
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business units
Other cash received relating to
0.00
investment activities
Subtotal of cash inflow from
591,071,911.81 829,117,841.78
investment activities
Cash paid for the purchase and
construction of fixed assets,
854,193,345.35 573,790,008.02
intangible assets and other
long-term assets
Cash paid for investment 470,500,000.00 617,034,000.00
Net increase in pledged loans
Net cash paid for acquiring
subsidiaries and other business 14,549,770.03 0.00
units
Other cash paid in connection with
20,016,000.00
investment activities
Subtotal of cash outflow from
1,339,243,115.38 1,210,840,008.02
investment activities
Net cash flow from investment activities -748,171,203.57 -381,722,166.24
III. Cash flow from financing activities:
Cash received from absorbing
1,341,854,327.60 44,442,375.30
investment
Including: cash received by
subsidiaries' absorption of minority 21,246,898.25
shareholders' investment
Cash received from loans 1,026,376,959.97 499,724,833.34
Other cash received in connection
27,248,871.75 51,476,244.39
with financing activities
Subtotal of cash inflow from financing
2,395,480,159.32 595,643,453.03
activities
Cash paid to repay debts 726,099,200.02 274,767,315.35
Cash paid to distribute dividends,
86,470,656.52 77,989,846.88
profits or pay interest
Including: dividends and profits
paid by subsidiaries to minority 5,197,835.08 4,061,400.15
shareholders
Other cash paid in connection with
40,197,743.20 38,047,377.60
financing activities
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Subtotal of cash outflow from financing
852,767,599.74 390,804,539.83
activities
Net cash flow from financing activities 1,542,712,559.58 204,838,913.20
IV. Impact of exchange rate fluctuations
-30,709,686.87 -36,026,940.91
on cash and cash equivalents
V. Net increase in cash and cash
539,269,123.28 434,990,514.43
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 1,196,835,834.92 761,845,320.49
period
VI. Balance of cash and cash
1,736,104,958.20 1,196,835,834.92
equivalents at the end of the period
6. Cash flow statement of the parent company
Unit: Yuan
Items 2021 2020
I. Cash flow from operating activities:
Cash received from selling goods
4,281,179,459.86 3,371,191,145.42
and providing services
Tax rebates received 257,161,861.26 156,974,447.43
Receipt of other cash related to
686,667,031.96 981,628,989.96
operating activities
Subtotal of cash inflow from
5,225,008,353.08 4,509,794,582.81
operating activities
Cash paid for purchasing goods and
3,729,736,400.30 2,594,237,500.42
accepting services
Cash paid to and for employees 456,452,513.20 401,882,971.23
Various taxes paid 74,299,409.46 42,011,867.61
Other cash paid in connection with
1,073,422,053.80 823,048,596.85
operating activities
Subtotal of cash outflow from operating
5,333,910,376.76 3,861,180,936.11
activities
Net cash flow from operating activities -108,902,023.68 648,613,646.70
II. Cash flow from investing activities:
Cash received from investment
50,792,461.51 171,209,909.06
recovery
Cash received as return on an 69,826,932.31 237,841,455.03
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investment
Net cash recovered from the
disposal of fixed assets, intangible 3,706,391.67 9,857,495.16
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
0.00 0.00
investment activities
Subtotal of cash inflow from
124,325,785.49 418,908,859.25
investment activities
Cash paid for the purchase and
construction of fixed assets,
132,018,239.35 101,947,971.74
intangible assets and other
long-term assets
Cash paid for investment 465,477,642.93 503,777,500.00
Net cash paid for acquiring
subsidiaries and other business 0.00 0.00
units
Other cash paid in connection with
0.00 20,016,000.00
investment activities
Subtotal of cash outflow from
597,495,882.28 625,741,471.74
investment activities
Net cash flow from investment activities -473,170,096.79 -206,832,612.49
III. Cash flow from financing activities:
Cash received from absorbing
1,320,607,429.35 44,442,375.30
investment
Cash received from loans 371,000,000.00 102,151,500.00
Other cash received in connection
12,264,121.98 18,199,609.19
with financing activities
Subtotal of cash inflow from financing
1,703,871,551.33 164,793,484.49
activities
Cash paid to repay debts 623,151,500.00 166,767,315.35
Cash paid to distribute dividends,
68,705,946.59 67,753,957.44
profits or pay interest
Other cash paid in connection with
27,128,147.14 28,680,695.64
financing activities
Subtotal of cash outflow from financing
718,985,593.73 263,201,968.43
activities
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Net cash flow from financing activities 984,885,957.60 -98,408,483.94
IV. Impact of exchange rate fluctuations
-14,047,341.55 -14,118,735.18
on cash and cash equivalents
V. Net increase in cash and cash
388,766,495.58 329,253,815.09
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 696,490,741.04 367,236,925.95
period
VI. Balance of cash and cash
1,085,257,236.62 696,490,741.04
equivalents at the end of the period
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7. Consolidated statement of changes in owner's equity
Current amount
Unit: Yuan
2021
Owner's equity attributable to the parent company
Items Other equity instruments Minority Total owners'
Other General
Minus: treasury Special Surplus Undistributed
Share capital Capital reserves comprehensive risk Other Subtotal equity equity
Preferred Perpetual
Other shares reserve reserves profit
shares bonds income provision
I. Ending balance
1,135,216,809.00 956,734,039.75 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
of last year
Plus: Changes in
accounting policies
Early error
12,636,853.09 -19,061,969.80 -6,425,116.71 -27,625,228.70 -34,050,345.41
correction
Merger of
enterprises under
the same control
Other
II. Balance at the
beginning of the 1,135,216,809.00 969,370,892.84 80,017,965.68 -24,555,229.97 0.00 151,359,957.53 0.00 1,305,882,400.11 3,457,256,863.83 57,366,922.73 3,514,623,786.56
current year
III. Amount of
increase or
121,761,263.00 1,170,682,256.90 162,507,467.92 -67,276,266.91 0.00 35,037,674.23 0.00 473,361,083.50 1,571,058,542.80 31,193,006.94 1,602,251,549.74
decrease in the
current period
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(decrease marked
with "-")
(I) Total
comprehensive -67,276,266.91 564,964,282.18 497,688,015.27 7,148,332.43 504,836,347.70
income
(II) Capital
invested and 121,761,263.00 1,182,369,916.81 162,507,467.92 1,141,623,711.89 1,141,623,711.89
reduced by owners
1.Ordinary shares
121,761,263.00 1,130,665,320.69 1,252,426,583.69 1,252,426,583.69
invested by owners
2.Capital
contributed by
0.00
holders of other
equity instruments
3.Amount of
share-based
51,704,596.12 242,525,433.60 -190,820,837.48 -190,820,837.48
payment included
in owner's equity
4.Other -80,017,965.68 80,017,965.68 80,017,965.68
(III) Profit
35,037,674.23 -91,603,198.68 -56,565,524.45 -5,197,835.08 -61,763,359.53
distribution
1.Withdrawal of
35,037,674.23 -35,037,674.23
surplus reserve
2.Withdrawal of
general risk
provision
3.Distribution to -56,565,524.45 -56,565,524.45 -5,197,835.08 -61,763,359.53
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owners (or
shareholders)
4.Other
(IV) Internal
carryover of
owner's equity
1.Conversion of
surplus reserves to
additional capital
(or share capital)
2.Conversion of
surplus reserves to
additional capital
(or share capital)
3.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.Other
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(V) Special reserve
1.Withdrawal in the
current period
2.Use in the current
period
(VI) Others -11,687,659.91 -11,687,659.91 29,242,509.59 17,554,849.68
IV. Ending balance
of the current 1,256,978,072.00 2,140,053,149.74 242,525,433.60 -91,831,496.88 186,397,631.76 1,779,243,483.61 5,028,315,406.63 88,559,929.67 5,116,875,336.30
period
Amount of the previous period
Unit: Yuan
2020
Owner's equity attributable to the parent company Minority Total owners'
Items equity equity
Other equity instruments Minus: Other General
Capital Special Surplus Undistributed
Share capital Preferred Perpetual treasury comprehensive risk Other Subtotal
Other reserves reserve reserves profit
shares bonds shares income provision
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
12,636,853.09 -17,706,279.40 -5,069,426.31 -24,362,516.10 -29,431,942.41
correction
Merger of
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enterprises
under the same
control
Other
II. Balance at
the beginning
1,018,775,769.00 104,535,879.24 469,193,135.41 60,009,612.52 -3,059,762.06 127,284,211.74 848,595,652.71 2,505,315,273.52 100,420,024.80 2,605,735,298.32
of the current
year
III. Amount of
increase or
decrease in the
current period 116,441,040.00 -104,535,879.24 500,177,757.43 20,008,353.16 -21,495,467.91 24,075,745.79 457,286,747.40 951,941,590.31 -43,053,102.07 908,888,488.24
(decrease
marked with
"-")
(I) Total
comprehensive -21,495,467.91 532,161,123.64 510,665,655.73 14,415,557.45 525,081,213.18
income
(II) Capital
invested and
116,441,040.00 -104,426,340.00 540,143,546.42 20,008,353.16 532,149,893.26 532,149,893.26
reduced by
owners
1.Ordinary
shares
12,014,700.00 32,428,355.38 44,443,055.38 44,443,055.38
invested by
owners
2.Capital
104,426,340.00 -104,426,340.00 498,506,425.85 498,506,425.85 498,506,425.85
contributed by
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holders of
other equity
instruments
3.Amount of
share-based
payment 9,208,765.19 9,208,765.19 9,208,765.19
included in
owner's equity
4.Other 20,008,353.16 -20,008,353.16 -20,008,353.16
(III) Profit
24,075,745.79 -74,874,376.24 -50,798,630.45 -4,061,400.15 -54,860,030.60
distribution
1.Withdrawal
of surplus 24,075,745.79 -24,075,745.79
reserve
2.Withdrawal
of general risk
provision
3.Distribution
to owners (or -50,798,630.45 -50,798,630.45 -4,061,400.15 -54,860,030.60
shareholders)
4.Other
(IV) Internal
carryover of
owner's equity
1.Conversion
of surplus
reserves to
additional
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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.Other
(V) Special
reserve
1.Withdrawal
in the current
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period
2.Use in the
current period
(VI) Others -109,539.24 -39,965,788.99 -40,075,328.23 -53,407,259.37 -93,482,587.60
IV. Ending
balance of the 1,135,216,809.00 969,370,892.84 80,017,965.68 -24,555,229.97 151,359,957.53 1,305,882,400.11 3,457,256,863.83 57,366,922.73 3,514,623,786.56
current period
8. Parent company's statement of changes in owner's equity
Current amount
Unit: Yuan
2021
Other equity instruments Other
Items Minus: Special Surplus Undistributed Total owners'
Share capital Preferred Perpetual Capital reserves comprehensive Other
Other treasury shares reserve reserves profit equity
shares bonds income
I. Ending balance of
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
last year
Plus: Changes in
accounting policies
Early error correction
Other
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 121,761,263.00 1,182,369,916.81 162,507,467.92 -5,199,465.63 35,037,674.23 258,773,543.58 1,430,235,464.07
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increase or decrease in
the current period
(decrease marked with
"-")
(I) Total
comprehensive -5,199,465.63 350,376,742.26 345,177,276.63
income
(II) Capital invested
and reduced by 121,761,263.00 1,182,369,916.81 162,507,467.92 1,141,623,711.89
owners
1.Ordinary shares
121,761,263.00 1,130,665,320.69 1,252,426,583.69
invested by owners
2.Capital contributed
by holders of other
equity instruments
3.Amount of
share-based payment
51,704,596.12 242,525,433.6 -190,820,837.48
included in owner's
equity
4.Other -80,017,965.68 80,017,965.68
(III) Profit distribution 35,037,674.23 -91,603,198.68 -56,565,524.45
1.Withdrawal of
35,037,674.23 -35,037,674.23
surplus reserve
2.Distribution to
owners (or -56,565,524.45 -56,565,524.45
shareholders)
3.Other
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(IV) Internal
carryover of owner's
equity
1.Conversion of
surplus reserves to
additional capital (or
share capital)
2.Conversion of
surplus reserves to
additional capital (or
share capital)
3.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.Other
(V) Special reserve
1.Withdrawal in the
current period
2.Use in the current
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period
(VI) Others
IV. Ending balance of
1,256,978,072.00 2,189,685,216.22 242,525,433.60 370,109.41 186,369,113.30 1,064,111,338.27 4,454,988,415.60
the current period
Amount of the previous period
Unit: Yuan
2020
Other equity instruments Minus: Other
Items Special Surplus Undistributed Total owners'
Share capital Preferred Perpetual Capital reserves treasury comprehensive Other
Other reserve reserves profit equity
shares bonds shares income
I. Ending balance
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
of last year
Plus: Changes in
accounting
policies
Early error
correction
Other
II. Balance at the
beginning of the 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
current year
III. Amount of
increase or
decrease in the 116,441,040.00 -104,535,879.24 549,370,498.03 20,008,353.16 5,569,575.04 24,075,745.79 165,883,081.70 736,795,708.16
current period
(decrease marked
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with "-")
(I) Total
comprehensive 5,569,575.04 240,757,457.94 246,327,032.98
income
(II) Capital
invested and 116,441,040.00 -104,426,340.00 540,143,546.42 20,008,353.16 532,149,893.26
reduced by owners
1.Ordinary shares
invested by 12,014,700.00 32,428,355.38 44,443,055.38
owners
2.Capital
contributed by
104,426,340.00 -104,426,340.00 498,506,425.85 498,506,425.85
holders of other
equity instruments
3.Amount of
share-based
9,208,765.19 9,208,765.19
payment included
in owner's equity
4.Other 20,008,353.16 -20,008,353.16
(III) Profit
24,075,745.79 -74,874,376.24 -50,798,630.45
distribution
1.Withdrawal of
24,075,745.79 -24,075,745.79
surplus reserve
2.Distribution to
owners (or -50,798,630.45 -50,798,630.45
shareholders)
3.Other
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(IV) Internal
carryover of
owner's equity
1.Conversion of
surplus reserves to
additional capital
(or share capital)
2.Conversion of
surplus reserves to
additional capital
(or share capital)
3.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.Other
(V) Special
reserve
1.Withdrawal in
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the current period
2.Use in the
current period
(VI) Others -109,539.24 9,226,951.61 9,117,412.37
IV. Ending
balance 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 period
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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: CNY 1,256,978,072.00 yuan
Capital stock: CNY 1,256,978,072.00 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
(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
joint stock limited company jointly by five shareholders, namely Wu Yongqiang, Ji Shuhai, Zhuhai Tsinghua
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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
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price of 16.66 yuan per share. The registered capital of the Company was increased to 298,520,813.00 yuan after
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
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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.
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 Document” 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,
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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.
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 “SZS [2019] No. 164 Document” 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.
On August 18, 2020, the China Securities Regulatory Commission issued the Reply on Approving the
Non-Public Offering of Shares by Shenzhen Topbang Co., Ltd. (ZJXK [2020] No. 1865), and approved the
Company's non-public offering of no more than 309,243,655 new shares. In June 2021, the non-public issuance of
92,105,263 new shares was listed on the Stock Exchange, with the registered capital increased by 92,105,263 yuan,
and the company's registered capital increased to 1,238,254,672.00 yuan after the change.
The company granted 33,544,320 restricted shares to 1,224 eligible incentive objects on November 2, 2021,
the grant date, at a grant price of 7.23 yuan per share. The restricted stocks are set with a restricted period. In the
three fiscal years from 2022 to 2024, the performance assessment will be carried out on an annual basis and the
restricted shares will be lifted at a ratio of 30%, 30% and 40%, respectively. The 14,838,920 shares granted come
from the repurchase shares, and 18,705,400 shares come from private placement. By granting the restricted shares,
the registered capital of the company increases by 18,705,400 shares, and the registered capital increases to
1,256,978,072.00 yuan after the change.
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(III) The financial report is approved and submitted by the Board of Directors of the Company on March 18,
2022.
(IV) Scope of the Consolidated Financial Statements
There are a total of 35 subsidiary companies included in the scope of the consolidated statement this time, as
shown in Note VIII (1); during the reporting period, nine companies were newly included in the scope of
consolidation, of which seven were newly-established subsidiaries or grandson companies, and two companies
were merged not under the same control, as described in Note VII (3).
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
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
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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
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
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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
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
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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.
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
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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
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.
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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.
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
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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
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
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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
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.
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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
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
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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
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).
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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
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.,
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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
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
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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
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
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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
Note: when measuring the expected credit loss of receivables, the Group has referred to the historical
experience of credit loss and adjusted it based on forward-looking estimates.
3. Receivables with not significant amount but with 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
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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
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 wrappage),
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
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of such inventories minus the estimated sales expenses and relevant taxes during normal production and operation,
and that of the inventories to be processed is determined at the estimated sale price of the finished products minus
the costs, sales expenses and relevant taxes estimated to be incurred up to completion during normal production
and operation. On the balance sheet date, the net realizable values are determined separately and compared with
the corresponding costs to determine the amount of withdrawal or reversal of inventory revaluation reserve if a
part of inventory is subject to the contractual price agreement and the rest is not.
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.
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 wrappage),
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
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realizable value. The net realizable value of the inventories ready for sale is determined at the estimated sale price
of such inventories minus the estimated sales expenses and relevant taxes during normal production and operation,
and that of the inventories to be processed is determined at the estimated sale price of the finished products minus
the costs, sales expenses and relevant taxes estimated to be incurred up to completion during normal production
and operation. On the balance sheet date, the net realizable values are determined separately and compared with
the corresponding costs to determine the amount of withdrawal or reversal of inventory revaluation reserve if a
part of inventory is subject to the contractual price agreement and the rest is not.
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.
16. Contractual assets
None
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
accordance with relevant regulations.
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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 the business combination under different control, the initial
investment cost shall be determined as the fair value of the consideration paid for combination on the purchase
date.
(3) Investment costs other than those incurred in business combination: The initial investment cost shall be
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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
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
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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
joint ventures are impaired on the balance sheet date, the provision of impairment reserve shall be made
accordingly based on the difference between the book value and the recoverable amount.
23. Investment property
Measurement model of investment property
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Measurement with cost method
Depreciation or amortization method
1. Investment property includes leased land use rights, land use rights held and ready to be assigned after
appreciation, and leased buildings.
2. Investment property is measured initially at cost and subsequently with cost model. The provision for
depreciation and amortization of the investment property are made in the way as used for fixed assets and
intangible assets. If there is any sign showing that the investment property is impaired on the balance sheet date,
the provision of impairment reserve shall be made accordingly based on the difference between the book value
and the recoverable amount.
The Company applied the cost model to subsequent measurement of investment property, and depreciated or
amortized it in accordance with the policy as used for the buildings or land use rights.
See Note V (23) "Long-term Assets Impairment" for details of the methods for impairment test and provision
of impairment reserve applicable to investment property.
If the real estate for private use or inventory is converted to an investment property or the investment
property is converted to a real estate for private use, the book value before such conversion shall be deemed as the
entry value after the conversion.
If the purpose of an investment property is changed to private use, this investment property shall be
converted into a fixed or intangible asset from the date of change. If the purpose of a 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 property from the date of change. If any asset is converted into an investment property measured with
the cost model, the book value before the conversion shall be deemed as the entry value after the conversion. If
any asset is converted into an investment property measured with the fair value model, the fair value on the
conversion date shall be deemed as the entry value after the conversion.
An investment property shall be de-recognized if this investment property is disposed of or permanently
retired, and it is expected that no economic benefits can be obtained from its disposal. The disposal income from
the sale, transfer, scrapping or damage of an investment property shall be included in the current profits and losses
after deducting its book value and relevant taxes and dues.
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24. Fixed assets
(1) Conditions for recognition
1. Recognition conditions, classification and pricing of fixed assets
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.
(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
Straight-line method 10 years 5.00% 9.50%
equipment
Transportation equipment Straight-line method 5 years 5.00% 19.00%
Molds Straight-line method 5 years 5.00% 19.00%
Electronic equipment and
Straight-line method 5 years 5.00% 19.00%
other equipment
(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 useful life of the leased asset [generally,
it accounts for more than 75% (including 75%) of the useful 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.
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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.
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
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meet the conditions for capitalization reaches the intended usable or marketable state.
3. Capitalized amount of borrowing costs
If special borrowings are for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount of interest to be capitalized shall be determined as the interest expenses
actually incurred (including the amortization of discounts or premiums determined with the effective interest rate
method) in the current period of the special borrowing minus the interest income from the unused borrowings that
have been deposited in the bank or the profit from temporary investment by the unused borrowings. If general
borrowings are used for the purpose of purchase, construction or production of assets that meet the conditions for
capitalization, the amount of interest to be capitalized shall be determined as the weighted average of asset
expenditure with accumulated asset expenditure exceeding special borrowing multiplied by capitalization rate of
the general borrowing occupied.
27. Biological assets
None
28. Oil and gas assets
None
29. Right-of-use assets
On the start date of lease, the Company recognizes right-of-use assets and lease liabilities for leases, except
for short-term leases and leases of low-value assets for which the application of the standard provides simplified
treatment.
The right-of-use assets shall be initially measured by the Company at the cost,The cost includes:
1. The initial measurement amount of the lease liability;
2. For lease payments paid on or before the starting date of the lease term, if there are lease incentives, the
amount of lease incentives already enjoyed shall be deducted;
3. The initial direct expenses incurred by the Company;
4. Estimated costs to dismantle and remove the leased asset, restore the site where the leased asset is located,
or restore the leased asset to the state agreed upon in the lease terms.The aforementioned costs are incurred for the
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make-to-stock production, and the Accounting Standards for Business Enterprises No. 1 - Inventories shall apply.
The company recognizes and measures the costs mentioned in Item 4 above in accordance with the
Accounting Standards for Business Enterprises No. 13 - Contingencies.
Initial direct costs are the incremental costs incurred to achieve the lease. Incremental costs are the costs that
would not have been incurred if the enterprise did not complete the lease.
The provision for the depreciation of the right-of-use assets shall be made with reference to the relevant
depreciation provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets. If 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.
The Company determines whether the right-of-use assets are impaired in accordance with the Accounting
Standards for Business Enterprises No. 8 - Asset Impairment, and carries out accounting treatment for the
identified impairment losses.
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.
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.
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(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
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
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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
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.
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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
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
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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
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
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Equity-settled share-based payment in exchange for employee services that can be exercised immediately
after the grant shall be included in the relevant costs or expenses according to the fair value of equity instruments
on the grant date, and the capital reserve shall be adjusted accordingly. For equity-settled share-based payment in
exchange for employee services only after completing service within the waiting period or reaching the specified
performance conditions, it is required to include the services obtained in the current period into relevant costs or
expenses according to the best estimate of number of vesting equity instruments and the fair value on the grant
date of equity instruments on each balance sheet date within the waiting period, and the capital reserve shall be
adjusted accordingly.
For equity-settled share-based payment in exchange for other party’s services, if the fair value of other
party’s services can be reliably measured, it shall be measured based on the fair value of other party’s services on
the acquisition date; In case the fair value of other party’s services cannot be reliably measured, but the fair value
of equity instruments can be reliably measured, it shall be measured based on the fair value of equity instruments
on the acquisition date and shall be included in relevant costs or expenses; besides, the owner’s equity shall be
increased accordingly.
(2) Cash-settled share-based payment
Cash-settled share-based payment in exchange for employee services that can be exercised immediately after
the grant shall be included in relevant costs or expenses according to the fair value of the liabilities undertaken by
the Company on the grant date, and the liabilities shall be increased accordingly. For cash-settled share-based
payment in exchange for employee services only after completing service within the waiting period or reaching
the specified performance conditions, it is required to include the services obtained in the current period into
relevant costs, 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.
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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
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
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therefrom.
2. The Company shall judge the nature of relevant performance obligations as “performance obligations
fulfilled in a certain period” or “performance obligations fulfilled at a certain time point” based on relevant
provisions of revenue standards, and shall confirm revenue according to the following principles respectively.
(1) In case the Company meets one of the following conditions, it shall fulfill the performance obligations
within a certain period of time:
① Customers obtain and consume economic benefits arising from performance of the Company during the
Company’s performance of the Contract.
② Customers can control the assets under construction during the Company’s performance of the Contract.
③ Assets of the Company during the performance of the Contract are irreplaceable, and the Company shall
be entitled to collect money for the performance part completed so far in the whole contract period.
For performance obligations fulfilled within a certain period of time, the Company shall recognize revenue
according to the performance progress within that period, except that the performance progress cannot be
reasonably determined. The Company shall consider the nature of commodities, and shall determine the proper
performance progress by adopting the output method or the input method.
(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 immediately.
② The Company has transferred the legal ownership of commodities to customers, which means that
customers have obtained the legal ownership of commodities.
③ The Company has transferred commodities in kind to customers, which means that customers have
possessed commodities in kind.
④ The Company has transferred main risks and rewards related to the ownership of commodities to
customers, which means that customers have obtained main risks and rewards related to the ownership of
commodities.
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⑤ Customers have accepted the commodities.
⑥ Other indications that customers have obtained the control right of commodities.
3. The specific method of revenue recognition of the group
In case the sales contract between the Company and customers has been deemed as a performance obligation
fulfilled at a certain time point, the specific revenue recognition method shall be formulated according to the
actual situation of the Company’s product sales as follows:
Domestic sales: ① The customer picks up the goods in cash. After the payment and delivery, it is
considered that the customer has obtained the control of the relevant goods, and the company has recognized the
sales revenue; ② If the advance payment is used for settlement, and the other party's customer confirmation
receipt is obtained after the delivery, it is considered that the customer has obtained the control of the relevant
commodities, and the company has recognized the sales revenue; ③ If the credit sale is adopted according to a
certain payment period, within which the customer settles, and after the delivery, the other party's customer
confirmation receipt is obtained, it is considered that the customer has obtained the control of the relevant goods,
and the company has recognized the sales revenue.
Foreign sales: the Company shall deliver commodities according to the signed order, hold special export
invoice, delivery note and other original documents for customs clearance and export, pass customs audit,
complete export declaration procedures, obtain the customs declaration documents as the point of transfer of
control of the relevant goods, and recognize the sales revenue by recording the revenue based on the delivery
order, special export invoice and customs declaration form.
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
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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
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
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
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the amount received or receivable; In case the government subsidies can be classified as non-monetary assets,
they shall be measured at fair value, and once the fair value cannot be obtained reliably, they shall be measured in
nominal amount.
3. Government subsidies calculated by adopting the gross method
(1) Government subsidies related to assets shall be recognized as deferred income and included in profits and
losses by stages in a reasonable and systematic way within the service life of relevant assets. In case relevant
assets are sold, transferred, scrapped or damaged prior to the end of their service life, the balance of relevant
deferred income that has not been allocated shall be transferred to the profits and losses of the current period of
asset disposal.
(2) Government subsidies related to income and used to compensate related expenses or losses in the later
period shall be recognized as deferred income, and shall be included in the current profits and losses during the
period when related expenses are recognized; subsidies used to compensate relevant expenses or losses incurred
shall be directly included in the current profits and losses.
4. Government subsidies calculated by adopting the net method
(1) Government subsidies related to assets shall be used to offset the book value of relevant assets;
(2) Government subsidies related to income and used to compensate related expenses or losses in the later
period shall be recognized as deferred income, and shall be used to offset related costs when related expenses are
recognized; subsidies used to compensate relevant expenses or losses incurred shall be directly used to offset
related costs.
5. 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:
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(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.
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 tax assets / Deferred tax liabilities
1. It is required to calculate and recognize the deferred tax assets or liabilities according to the difference
between the book value of the assets and liabilities and corresponding tax base (in case the tax base of items not
recognized as assets and liabilities can be determined according to the provisions of the tax law, the difference
between the tax base and their book amount shall be adopted) as well as the applicable tax rate during the period
of expected recovery of the assets or settlement of the liabilities.
2. Recognition of deferred tax assets shall be limited to the taxable income that is likely to be obtained to
offset temporary deductible differences. 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 tax assets not recognized
in the previous accounting period shall be recognized on the balance sheet date.
3. The book value of deferred tax assets shall be reviewed on the balance sheet date. In case it is impossible
to obtain enough taxable income to offset the benefits of the deferred tax assets in the future, the book value of the
deferred tax assets shall be written down. If it is likely to obtain enough taxable income, the write down amount
shall be reversed.
4. The current income tax and deferred tax of the Company shall be recognized as income tax expense or
income, and shall be included in the current profits and losses, except for income tax arising from the following
circumstances: (1) 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) Operating lease business recorded by the Company as the lessee
Rental expenditure of operating lease shall be included in relevant asset cost or current profits and losses by
adopting the straight-line method in each period of the lease term. Initial direct expenses shall be included in the
current profits and losses. Contingent rents shall be included in the current profits and losses at the time of
occurrence.
(2) Operating lease business recorded by the Company as the lessor
Rental income of operating lease shall be recognized as the current profits and losses by adopting the
straight-line method in each period of the lease term. Initial direct expenses with large amount shall be capitalized
at the time of occurrence, and shall be included in the current profits and losses by stages on the same basis as the
rental revenue during the whole lease term; Other initial direct expenses with small amount shall be included in
the current profits and losses at the time of occurrence. Contingent rents shall be included in the current profits
and losses at the time of occurrence.
(2) Accounting treatment of financing lease
(1) Financial lease business recorded by the Company as the lessee
The lower of the fair value of the leased asset and the present value of the minimum lease payment on the
beginning date of lease term shall be taken as the entry value of the leased asset, the minimum lease payment shall
be taken as the entry value of the long-term accounts payable, and the difference of the above two shall be taken
as the unrecognized financing expense at the beginning of the lease term. In addition, initial direct expenses that
can be attributed to the leased item in the process of lease negotiation and signing the lease contract shall also be
included in leased assets. Balance of the minimum lease payment after deducting the unrecognized financing
expenses shall be listed as long-term liabilities or long-term liabilities due within one year.
During the lease term, the unrecognized financing expenses shall be calculated and recognized by adopting
the effective interest rate method. Contingent rents shall be included in the current profits and losses at the time of
occurrence.
(2) Financial lease business recorded by the Company as the lessor
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The sum of the minimum lease receipts and the initial direct expenses on the beginning date of lease term
shall be taken as the entry value of the financing lease receivables, and the unguaranteed residual value shall be
recorded at the same time at the beginning of the lease term; and the sum of minimum lease collection, initial
direct cost and difference between unguaranteed residual value and its present value shall be recognized as
unrealized financing income. Balance of financing lease receivables after deducting the unrealized financing
income shall be listed as long-term creditor’s right or long-term creditor’s right due within one year.
During the lease term, the unrealized financing income shall be calculated and recognized by adopting the
effective interest rate method. Contingent rents shall be included in the current profits and losses at the time of
occurrence.
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:
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(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.
(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 the sequent periods, especially for the analysis of
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.
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(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:
(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)
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during the waiting period shall be resold, and the capital reserve (capital premium or share premium) shall be
adjusted according to the difference.
44. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
√ applicable □ not applicable
Contents and reasons of the accounting policy change Approval procedures Remarks
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
Not applicable
new 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 right-of-use assets and lease liabilities must be recognized;
2. For the right-of-use 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 right-of-use 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 right-of-use 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.
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Specifically, the implementation of the new lease standards resulted in an increase of 30.94 million yuan in
the Company's right-of-use 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.
(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 □ not 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
Tradable 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
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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 70,296,444.76 70,296,444.76
Total current assets 4,676,904,740.35 4,676,904,740.35
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 property 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
Right-of-use assets 30,939,385.41 30,939,385.41
Intangible assets 279,279,569.40 279,279,569.40
Development expenditure 62,861,779.22 62,861,779.22
Goodwill 108,637,368.48 108,637,368.48
Long-term deferred expenses 72,077,671.09 72,077,671.09
Deferred 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 2,097,779,951.52 2,128,719,336.93 30,939,385.41
Total assets 6,774,684,691.87 6,805,624,077.28 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
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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
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 tax liabilities 11,819,861.30 11,819,861.30
Other non-current liabilities
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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
Capital reserves 969,370,892.84 969,370,892.84
Minus: 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 1,305,882,400.11 1,305,882,400.11
Total owner's equity attributable to the parent
3,457,256,863.83 3,457,256,863.83
company
Minority equity 57,366,922.73 57,366,922.73
Total owners' equity 3,514,623,786.56 3,514,623,786.56
Total liabilities and owners' equity 6,774,684,691.87 6,805,624,077.28 30,939,385.41
Adjustment details
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
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implementation of the standards, and the information of comparable periods shall not be adjusted." Therefore, the
Company measures lease liabilities and right-of-use 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
Items December 31, 2020 January 1, 2021 Adjustment quantity
Current assets:
Monetary capital 705,163,083.52 705,163,083.52
Tradable 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 property
Fixed assets 120,829,877.70 120,829,877.70
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Construction in progress 2,392,458.84 2,392,458.84
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 132,732,792.93 132,732,792.93
Development expenditure 44,248,718.56 44,248,718.56
Goodwill
Long-term deferred expenses 27,739,322.93 27,739,322.93
Deferred 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
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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 tax liabilities 8,106,676.00 8,106,676.00
Other non-current liabilities
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
Minus: 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 details
Not applicable
(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
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45. Others
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%
Consumption tax Paid turnover tax amount 7%
City maintenance and construction tax Paid turnover tax amount 3%
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
Name of taxpayer Income tax rate
Shenzhen Topband Co., Ltd. 15.00%
Shenzhen Topband Software Technology Co., Ltd. 15.00%
Shenzhen Topband Automation Technology Co., Ltd. 25.00%
Shenzhen Topband Battery Co., Ltd. 15.00%
Chongqing Topband Industrial Co., Ltd. 25.00%
Topband (Hong Kong) Co., Ltd. 16.50%
Huizhou Topband Electrical Technology Co., Ltd. 15.00%
TOPBAND INDIA PRIVATE LIMITED 25.17%
Shenzhen YAKO Automation Technology Co., Ltd. 15.00%
Shenzhen Allied Control System Co., Ltd. 15.00%
Shenzhen Yansheng Software Co., Ltd. 12.5%
Ningbo Topband Intelligent Control Co., Ltd. 25.00%
Shenzhen Meanstone Intelligent Technology Co., Ltd. 20.00%
Hangzhou Zhidong Motor Technology Co., Ltd. 25.00%
Taixing Ninghui Lithium Battery Co., Ltd. 15.00%
Shenzhen Topband Supply Chain Services Co., Ltd. 25.00%
Shenzhen Topband Investment Co., Ltd. 25.00%
Shenzhen Spark IOT Technology Co., Ltd. 20.00%
Shenzhen Zhongli Consulting Co., Ltd. 20.00%
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Shenzhen Tulu Innovation Co., Ltd. 20.00%
TUNNU INNOVATION,INC 29.84%
Shenzhen Senxuan Technology Co., Ltd. 20.00%
Shenzhen Tengyi Industrial Co., Ltd. 20.00%
Topband (Qingdao) Intelligent Control Co., Ltd. 20.00%
Shenzhen Topband Automotive Electronics Co., Ltd. 20.00%
TOPBAND JAPAN Co., Ltd. 22.46%
Tulu Innovation (Hong Kong) Limited 16.50%
Topband （Vietnam) Co.,ltd 20.00%
TOPBAND SMART DONGNAI(VIETNAM) Co.,ltd 20.00%
Topband Germany GmbH 15.825%
Huizhou Topband Lithium Battery Co., Ltd. 20.00%
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
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 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
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Enterprises.
On December 23, 2021, Shenzhen Allied Control System Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144206368 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance 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 2021 to 2023 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 December 23, 2021, Shenzhen YAKO Automation Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR202144205479 and issued by Shenzhen Science and Technology
Innovation Commission, Shenzhen Finance 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 2021 to 2023 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 December 23, 2021, Shenzhen Topband Battery Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144203102 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic of
China on Enterprise Income Tax, 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 December 20, 2021, Huizhou Topband Electrical Technology Co., Ltd. obtained the Certificate for
High-tech Enterprise that is numbered GR202144003640 and issued by the Department of Science and
Technology of Guangdong Province, the Department of Finance of Guangdong Province, and Guangdong
Provincial Tax Service, State Taxation Administration. This Certificate is valid within 3 years from the date of
issuance. The corporate income tax rate applicable for the Company from 2021 to 2023 is 15% in accordance with
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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 December 23, 2021, Shenzhen Yansheng Software Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144207744 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic of
China on Enterprise Income Tax, 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 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.The company's corporate income tax rate from 2019 to 2021 was
12.5%.
On November 25, 2021, the Taizhou Science & Technology Bureau issued the Announcement on the
Enterprises to be Included in the National High-tech Enterprise Cultivation Library of Taizhou in 2021,
recognizing Ninghui Lithium Battery Co., Ltd. as a high-tech enterprise. On November 30, 2022, at the working
net of High-tech Enterprise Identification Management, the Third Batch of High-tech Enterprises for
Identification and Filing in 2021 in Jiangsu Province was published. The company's applicable corporate income
tax rate from 2021 to 2023 is 15%.
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
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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. According to Announcement of the State Taxation Administration on Matters
Concerning the Implementation of Preferential Income Tax Policies Supporting the Development of Small
Low-Profit Enterprises and Individual Industrial and Commercial Households (CS [2021] No. 12), the annual
taxable income of small and low-profit enterprises shall not exceed 1 million yuan. On the basis of the preferential
policies stipulated in Article 2 of the Notice of the Ministry of Finance and the State Administration of
Taxation on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises
(CS [2019] No. 13), the corporate income tax will be halved. 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., Shenzhen Tengyi Industrial Co., Ltd.,
and Shenzhen Topband Automotive Electronics Co., Ltd. that are subsidiaries and sub-subsidiaries.
3. Other
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: Yuan
Items Ending balance Beginning balance
Cash on hand 1,015,081.13 604,492.12
Bank deposit 1,337,414,181.07 1,196,226,680.89
Other monetary capital 429,150,793.87 22,264,303.49
Total 1,767,580,056.07 1,219,095,476.50
Including: total amount deposited abroad 177,157,407.24 153,809,647.09
Other description:
Other monetary capital mainly includes the large-denomination certificates of deposit of CNY
330,000,000.00 yuan and the fixed-time deposit of CNY 50,000,000.00 yuan.At the end of the period, the other
restricted monetary capital amounts to CNY 31,475,097.87. For details, please refer to Note “VI (57)” in this
financial report.At the end of the period, there is no amount deposited overseas and with the repatriation restricted.
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2. Tradable financial assets
Unit: Yuan
Items Ending balance Beginning balance
Financial assets measured at fair value with changes
214,999,336.74 226,491,482.10
included in the current profits and losses
Including:
Financial products 4,000,000.00 112,970,000.00
Investment in equity instruments 210,999,336.74 113,521,482.10
Including:
Total 214,999,336.74 226,491,482.10
Other description:
3. Derivative financial assets
Unit: Yuan
Items Ending balance Beginning balance
Other description:
4. Notes receivable
(1) Notes receivable listed by category
Unit: Yuan
Items Ending balance Beginning balance
Bank acceptance bill 141,695,340.12 33,560,579.23
Commercial acceptance bill 19,964,130.09 5,917,351.40
Total 161,659,470.21 39,477,930.63
Unit: Yuan
Category Ending balance Beginning balance
Book balance Provision for bad debts Book value Book balance Provision for bad debts Book value
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
of of
provision provision
Notes 150,816,667.92 93.09% 0.00% 150,816,667.92 33,560,579.23 84.61% 33,560,579.23
receivable with
single provision
for bad debts
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Including:
Bank 141,695,340.12 87.46% 0.00% 141,695,340.12 33,560,579.23 84.61% 33,560,579.23
acceptance bill
Commercial 9,121,327.80 5.63% 0.00% 9,121,327.80
acceptance bill
Notes 11,189,682.44 6.91% 346,880.15 3.10% 10,842,802.29 6,106,657.79 15.39% 189,306.39 3.10% 5,917,351.40
receivable with
provision for
bad debts by
portfolio
Including:
Commercial 11,189,682.44 6.91% 346,880.15 3.10% 10,842,802.29 6,106,657.79 15.39% 189,306.39 3.10% 5,917,351.40
acceptance bill
Total 162,006,350.36 100.00% 346,880.15 0.21% 161,659,470.21 39,667,237.02 100.00% 189,306.39 0.48% 39,477,930.63
Single provision for bad debts: 0
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision Reasons for provision
No risk of cashing bank
Bank acceptance bill 141,695,340.12 0.00 0.00%
acceptance bill
Discounted or endorsed
Commercial acceptance bill 9,121,327.80 0.00 0.00%
notes receivable
Total 150,816,667.92 0.00 -- --
Single provision for bad debts:
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision Reasons for provision
Provision for bad debts by portfolio: 346,880.15
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Commercial acceptance bill 11,189,682.44 346,880.15 3.10%
Description of the basis for determining the portfolio:
Provision for bad debts by portfolio:
Unit: Yuan
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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 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
(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 Other
reversal
Provision for bad debts -
189,306.39 157,573.76 346,880.15
notes receivable
Total 189,306.39 157,573.76 346,880.15
Of which the amount of provision for bad debts reversed or recovered in current period is significant:
□ applicable √ not applicable
(3) Notes receivable pledged by the Company at the end of the period
Unit: Yuan
Items Amount pledged at the end of the period
Bank acceptance bill 2,040,042.80
Commercial acceptance bill 10,000.00
Total 2,050,042.80
(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
Items Amount derecognized at the end of the period Amount not derecognized at the end of the period
Bank acceptance bill 104,278,163.47
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Commercial acceptance bill 9,121,327.80
Total 113,399,491.27
(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
5. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: Yuan
Category Ending balance Beginning balance
Book balance Provision for bad debts Book value Book balance Provision for bad Book value
debts
Amount Proport Amount Proportio Amount Proportion Amount Proportio
ion n of n of
provision provision
Accounts
receivable with
provision for bad 84,081,324.25 3.60% 70,915,243.12 84.34% 13,166,081.13 3,787,463.00 0.21% 3,787,463.00 100.00%
debts by single
item
Including:
Accounts
receivable with a
single significant 82,399,228.55 3.53% 69,233,147.42 84.02% 13,166,081.13
amount and single
bad debt provision
Accounts
receivable with
insignificant single
1,682,095.70 0.07% 1,682,095.70 100.00% 3,787,463.00 0.21% 3,787,463.00 100.00%
amount but single
provision made for
bad debts
Accounts 2,247,009,076 96.40% 72,013,691.92 3.20% 2,174,995,384.35 1,758,425,18 99.79% 57,314,031.63 3.26% 1,701,111,153.84
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receivable with .27 5.47
provision for bad
debts by portfolio
Including:
Accounts
receivable with
2,247,009,076 1,758,425,18
provision for bad 96.40% 72,013,691.92 3.20% 2,174,995,384.35 99.79% 57,314,031.63 3.26% 1,701,111,153.84
.27 5.47
debts by aging
combination
2,331,090,400 1,762,212,64
Total 100.00% 142,928,935.04 6.13% 2,188,161,465.48 100.00% 61,101,494.63 3.47% 1,701,111,153.84
.52 8.47
Single provision for bad debts: 70,915,243.12
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision Reasons for provision
Accounts receivable with
a single significant
82,399,228.55 69,233,147.42 84.02% It is difficult to recover
amount and single bad
debt provision
Accounts receivable with
insignificant single
amount but single 1,682,095.70 1,682,095.70 100.00% It is difficult to recover
provision made for bad
debts
Total 84,081,324.25 70,915,243.12 -- --
Single provision for bad debts:
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision Reasons for provision
Provision for bad debts by portfolio: 72,013,691.92
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivable with provision for
2,247,009,076.27 72,013,691.92 3.20%
bad debts by aging combination
Total 2,247,009,076.27 72,013,691.92 --
Description of the basis for determining the portfolio:
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Provision for bad debts by portfolio:
□ applicable √ not applicable
Description of the basis for determining the portfolio:
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
Disclosure by aging
Unit: Yuan
Aging Book balance
Less than 1 year (including 1 year) 2,268,073,021.54
1 to 2 years 55,023,639.35
2 to 3 years 3,892,587.98
Above 3 years 4,101,151.65
3 to 4 years 3,379,186.52
4 to 5 years 72,198.33
Above 5 years 649,766.80
Total 2,331,090,400.52
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
Beginning Amount changed in current period
Category Ending balance
balance Provision Recover or reversal Write-off Other
Provision for bad debts 61,101,494.63 86,416,341.20 4,588,900.79 142,928,935.04
Total 61,101,494.63 86,416,341.20 4,588,900.79 142,928,935.04
Of which the amount of provision for bad debts reversed or recovered in current period is significant: None
(3) Accounts receivable actually written off in current period
Unit: Yuan
Items Write-off amount
Accounts receivable actually written off 4,588,900.79
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Of which the significant write-offs of accounts receivable: None
(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
No.1 629,407,436.86 27.00% 19,511,630.53
No.2 86,449,968.60 3.71% 2,679,949.03
No.3 65,830,405.66 2.82% 52,664,324.53
No.4 56,820,453.86 2.44% 1,761,434.07
No.5 46,483,916.71 1.99% 1,441,001.42
Total 884,992,181.69 37.96%
(5) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be
involved
Other description:
(6) Accounts receivable derecognized due to transfer of financial assets
6. Receivables financing
Unit: Yuan
Items Ending balance Beginning balance
Bank acceptance bill 26,520,757.05 90,426,713.39
Accounts receivable 10,381,750.80 156,229,313.88
Total 36,902,507.85 246,656,027.27
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
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the next 12 months entire duration (no credit the entire duration
impairment) (credit impairment
occurred)
Balance as of January 1,
4,843,108.73 4,843,108.73
2021
Reversal in current period 4,521,274.46 4,521,274.46
Balance as of December
321,834.27 - - 321,834.27
31, 2021
Other description:
7. Prepayments
(1) Prepayments are listed by aging
Unit: Yuan
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 40,538,366.14 98.11% 16,968,264.14 95.68%
1 to 2 years 666,816.83 1.61% 627,825.07 3.54%
2 to 3 years 94,392.13 0.23% 113,188.10 0.64%
Above 3 years 20,709.92 0.05% 25,952.68 0.15%
Total 41,320,285.02 -- 17,735,229.99 --
Explanation of the cause for untimely settlement of advance payments aging more than one year with important
amounts
(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
19,648,064.39 yuan, accounting for 47.55% of the total ending balances of prepayments.
Other description:
None
8. Other receivables
Unit: Yuan
Items Ending balance Beginning balance
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Other receivables 50,156,221.82 40,728,126.64
Total 50,156,221.82 40,728,126.64
(1) Interest receivable
1) Classification of interest receivable
□ applicable √ not applicable
2) Significant overdue interest
□ applicable √ not applicable
3) Provision for bad debts
□ applicable √ not applicable
(2) Dividends receivable
1) Classification of interest receivable
□ applicable √ not applicable
2) Important dividends receivable aged over 1 year
□ applicable √ not applicable
3) Provision for bad debts
□ applicable √ not applicable
Other description:
(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
Margin, deposit 28,560,062.74 11,276,827.12
Employee personal loan 11,891,648.41 7,886,380.07
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Export rebate amount 14,317,249.26 23,817,036.82
Other 638,217.83 187,249.47
Total 55,407,178.24 43,167,493.48
2) Provision for bad debts
Unit: Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss for the Expected credit loss for the
Provision for bad debts Expected credit loss Total
entire duration (no credit entire duration (credit
in the next 12 months
impairment) impairment occurred)
Balance as of January 1,
2,439,366.84
2021
Balance as of January 1,
—— —— —— ——
2021 in the current period
Accrued in current period 3,478,279.55
Cancel after verification
666,689.97
in the current period
Balance as of December
5,250,956.42
31, 2021
Changes in book balance with significant changes in loss reserves in current period
□ applicable √ not applicable
Disclosure by aging
Unit: Yuan
Aging Book balance
Less than 1 year (including 1 year) 43,323,546.41
1 to 2 years 2,561,108.59
2 to 3 years 6,626,239.26
Above 3 years 2,896,283.98
3 to 4 years 1,734,261.72
4 to 5 years 1,121,468.00
Above 5 years 40,554.26
Total 55,407,178.24
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3) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
Beginning Amount changed in current period
Category Ending balance
balance Provision Recover or reversal Write-off Other
Bad-debt
provision for other
2,439,366.84 3,478,279.55 666,689.97 5,250,956.42
accounts
receivable
Total 2,439,366.84 3,478,279.55 666,689.97 5,250,956.42
Of which the amount of provision for bad debts reversed or recovered in current period is significant: None
4) Other receivables actually written off in current period
Unit: Yuan
Items Write-off amount
Other accounts receivable cancelled after verification 666,689.97
Of which the significant write-offs of other receivables: None
Description of other receivable written off: None
5) Other receivables of top five ending balances grouped by debtors
Unit: Yuan
Proportion to total Ending balance of
Name of Entity Nature of payment Ending balance Aging ending balances of provision for bad
other receivables debts
No.1 Export rebate amount 14,317,249.26 Within 1 year 25.84%
No.2 Investment margin 5,000,000.00 Within 1 year 9.02%
No.3 Margin, deposit 3,500,000.00 Within 1 year 6.32% 175,000.00
No.4 Margin, deposit 3,203,622.59 Within 1 year 5.78% 160,181.13
No.5 Margin, deposit 2,030,629.92 Within 1 year 3.66% 101,531.50
Total -- 28,051,501.77 -- 50.62% 436,712.63
6) Receivables involving government subsidies
□ applicable √ not applicable
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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
Other description:
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
Provision for Provision for
decline in value decline in value
of inventories or of inventories or
Items
Book balance provision for Book value Book balance provision for Book value
impairment of impairment of
contract contract
performance cost performance cost
Raw materials 1,373,010,350.15 87,214,891.71 1,285,795,458.44 669,357,860.89 56,781,506.42 612,576,354.47
Products in
108,042,400.38 14,608.82 108,027,791.56 65,058,584.18 65,058,584.18
process
Goods on hand 601,322,955.25 15,911,446.54 585,411,508.71 340,321,032.11 9,669,035.83 330,651,996.28
Goods shipped in
122,939,046.46 3,114,595.53 119,824,450.93 48,921,114.18 3,963,402.85 44,957,711.33
transit
Self-manufactured
semi-finished 80,789,830.12 3,169,232.84 77,620,597.28 60,865,430.27 3,717,115.68 57,148,314.59
product
Low-value
97,460.86 97,460.86 84,986.73 84,986.73
consumables
Materials
entrusted for 7,625,498.26 7,625,498.26 4,834,921.04 4,834,921.04
processing
Total 2,293,827,541.48 109,424,775.44 2,184,402,766.04 1,189,443,929.40 74,131,060.78 1,115,312,868.62
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(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
Items Beginning balance Ending balance
Provision Other Reversal or write-off Other
Raw materials 56,781,506.42 71,134,786.86 40,701,401.57 87,214,891.71
Products in
14,608.82 14,608.82
process
Goods on hand 9,669,035.83 28,074,800.18 21,832,389.47 15,911,446.54
Goods shipped in
3,963,402.85 -835,710.32 13,097.00 3,114,595.53
transit
Self-manufactured
semi-finished 3,717,115.68 1,606,859.02 2,154,741.86 3,169,232.84
product
Total 74,131,060.78 99,995,344.56 64,701,629.90 109,424,775.44
(3) Description of capitalized amount of borrowing costs included in ending balance of inventory
□ applicable √ not applicable
(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
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Items Ending balance Beginning balance
Input tax of VAT 92,861,498.25 66,429,956.99
Other taxes paid in advance 19,851,631.11 3,837,535.73
Upfront IPO-related fees 358,490.57
Prepaid and amortized expenses 28,952.04
Total 113,071,619.93 70,296,444.76
Other description:
14. Debt investment
□ applicable √ not applicable
15. Other debt investment
□ applicable √ not applicable
16. Long-term receivables
(1) Situation of long-term receivables
□ applicable √ not applicable
(2) Long-term receivables derecognized due to transfer of financial assets
(3) Amount of assets and liabilities formed by transferring long-term receivables and continuing to be
involved
Other description:
17. Long-term equity investment
Unit: Yuan
Investee Beginning Changes in increase/decrease in current period Ending Ending
balance Additional Decrease Profit and Adjustment to Other Declaration Provision Other balance (book balance of
(book value) investment in loss on other changes of for value) provision for
investment investment comprehensive in distribution impairment impairment
recognized income equity for cash
under equity dividends
method or profits
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I. Joint venture
II. Associates enterprises
Shenzhen 9,764,719.19 9,764,719.19
Yuchengxin
Power
Technology
Co., Ltd.
Shenzhen Daka 6,502,528.13 -527,468.28 5,975,059.85
Optoelectronics
Co., Ltd.
Pas Electronic 10,000,000.00 -2,032,566.01 7,967,433.99
Technology
(Nanjing) Co.,
Ltd.
Shanghai 12,500,000.00 -323,366.02 12,176,633.98
Yidong Power
Technology
Co., Ltd.
Subtotal 6,502,528.13 22,500,000.00 -2,883,400.31 35,883,847.01 9,764,719.19
Total 6,502,528.13 22,500,000.00 -2,883,400.31 35,883,847.01 9,764,719.19
Other description:
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
1. Beginning 94,945,556.51 94,945,556.51
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balance
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
5,707,290.80 5,707,290.80
balance
2. Increase in current
2,263,151.40 2,263,151.40
period
(1) Provision or
2,263,151.40 2,263,151.40
amortization
3. Decrease in
current period
(1) Disposal
(2) Other transfer
out
4. Ending balance 7,970,442.20 7,970,442.20
III. Provision for
impairment
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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
86,975,114.31 86,975,114.31
value
2. Beginning book
89,238,265.71 89,238,265.71
value
(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 1,299,517,887.54 1,096,875,640.94
Total 1,299,517,887.54 1,096,875,640.94
(1) Fixed assets
Unit: Yuan
Houses and Machinery and Transportation Office equipment and
Items Total
buildings equipment equipment others
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I. Original book value
1. Beginning balance 752,994,459.37 525,970,142.85 2,365,946.85 162,218,225.49 1,443,548,774.56
2. Increase in current
63,665,845.71 192,044,577.70 311,834.38 73,177,944.57 329,200,202.36
period
(1) Acquisition 1,057,156.18 171,692,846.26 248,060.05 49,732,248.89 222,730,311.38
(2) Transfer in of
construction in 62,608,689.53 19,865,971.04 354,007.87 82,828,668.44
progress
(3) Increase in business
63,774.33 22,320,173.21 22,383,947.54
merger
(4) Other 485,760.40 771,514.60 1,257,275.00
3. Decrease in current
22,822,527.32 110,521.70 8,303,605.56 31,236,654.58
period
(1) Disposal or scrap 21,033,077.07 106,452.48 8,146,785.50 29,286,315.05
(2) Other 253,576.96 253,576.96
(3) Impact of exchange
1,535,873.29 4,069.22 156,820.06 1,696,762.57
rate changes
4. Ending balance 816,660,305.08 695,192,193.23 2,567,259.53 227,092,564.50 1,741,512,322.34
II. Accumulated
depreciation
1. Beginning balance 100,672,188.32 168,725,723.97 1,905,112.82 75,370,108.51 346,673,133.62
2. Increase in current
18,166,677.70 57,564,573.12 344,533.32 31,473,025.96 107,548,810.10
period
(1) Provision 18,047,211.98 57,564,573.12 319,099.85 30,091,013.16 106,021,898.11
(2) Increment from
25,433.47 1,113,847.68 1,139,281.15
enterprises merged
(3) Other 119,465.72 268,165.12 387,630.84
3. Decrease in current
5,827,634.57 50,352.86 6,349,521.49 12,227,508.92
period
(1) Disposal or scrap 5,665,179.07 50,352.86 6,239,457.04 11,954,988.97
(2) Other 162,455.50 110,064.45 272,519.95
4. Ending balance 118,838,866.02 220,462,662.52 2,199,293.28 100,493,612.98 441,994,434.80
III. Provision for
impairment
1. Beginning balance
2. Increase in current
period
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(1) Provision
3. Decrease in current
period
(1) Disposal or scrap
4. Ending balance
IV. Book value
1. Ending book value 697,821,439.06 474,729,530.71 367,966.25 126,598,951.52 1,299,517,887.54
2. Beginning book value 652,322,271.05 357,244,418.88 460,834.03 86,848,116.98 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
□ applicable √ not applicable
(5) Disposal of fixed assets
□ applicable √ not applicable
22. Construction in progress
Unit: Yuan
Items Ending balance Beginning balance
Construction in progress 495,248,025.93 292,474,798.41
Total 495,248,025.93 292,474,798.41
(1) Situation of construction in progress
Unit: Yuan
Items Ending balance Beginning balance
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Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Chongqing Yiyuan 16,356,912.92 16,356,912.92 1,950,161.78 1,950,161.78
Decoration of Huizhou
2,966,677.50 2,966,677.50 19,675,613.36 19,675,613.36
Plant
Topband (India) Plant 15,671,909.07 15,671,909.07 12,113,644.13 12,113,644.13
Ningbo Topband Industrial
342,090,917.50 342,090,917.50 208,173,673.86 208,173,673.86
Park
Decoration project 189,761.68 189,761.68
Test equipment to be
102,011,463.64 102,011,463.64 34,312,847.55 34,312,847.55
commissioned
Vietnam Dong Nai
7,740,644.30 7,740,644.30 14,686,143.94 14,686,143.94
Decoration
Dormitory renovation of
953,557.22 953,557.22 1,372,952.11 1,372,952.11
Huizhou plant
Huizhou YAKO
3,452,853.07 3,452,853.07
Automation Plant
Qingdao Plant 1,086,337.54 1,086,337.54
Huizhou No.2 Industrial
2,916,753.17 2,916,753.17
Park
Total 495,248,025.93 495,248,025.93 292,474,798.41 292,474,798.41
(2) Changes of major projects under construction in the current period
Unit: Yuan
Proporti
Including
on of
Amount Accumul :
cumulat
of fixed Other ated capitaliza Capitaliza
ive Proje Sour
Increase in assets decreas amount tion tion rate
Project Amount Beginning Ending investm ct ce of
current transferre es in of amount of interest
name budgeted balance balance ent in progr capit
period d in current interest of in current
the ess als
current period capitalize interest in period
project
period d current
to
period
budget
Chongq Fund
230,000,00 1,950,161. 14,406,751 16,356,912
ing 90.17% 90% raisin
0.00 78 .14 .92
Yiyuan g
Topban 136,004,00 12,113,644 4,058,258. 499,993 15,671,909 Othe
84.67% 84%
d 0.00 .13 92 .98 .07 r
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(India)
Plant
Ningbo
Topban Fund
465,704,30 208,173,67 133,917,24 342,090,91
d 73.28% 73% raisin
0.00 3.86 3.64 7.50
Industri g
al Park
Dong
Nai
Provinc 75,000,000 11,997,186 45,735,111 57,732,29 Othe
76.97% 77%
e, .00 .05 .41 7.46 r
Vietna
m
906,708,30 234,234,66 198,117,36 57,732,29 499,993 374,119,73
Total -- -- --
0.00 5.82 5.11 7.46 .98 9.49
(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
(2) Productive biological assets with fair value measurement model
□ applicable √ not applicable
24. Oil and gas assets
□ applicable √ not applicable
25. Right-of-use assets
Unit: Yuan
267
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Items Houses and buildings Total
1. Beginning balance 30,939,385.41 30,939,385.41
2. Increase in current period 44,052,298.83 44,052,298.83
(1) New lease 44,052,298.83 44,052,298.83
3. Decrease in current period 916,406.75 916,406.75
(1) Termination of contract 916,406.75 916,406.75
4. Ending balance 74,075,277.49 74,075,277.49
2. Increase in current period 16,234,413.73 16,234,413.73
(1) Provision 16,234,413.73 16,234,413.73
3. Decrease in current period 327,288.12 327,288.12
(1) Disposal 327,288.12 327,288.12
4. Ending balance 15,907,125.61 15,907,125.61
1. Ending book value 58,168,151.88 58,168,151.88
2. Beginning book value 30,939,385.41 30,939,385.41
Other descriptions: None
26. Intangible assets
(1) Situation of intangible assets
Unit: Yuan
Items Land usage right Patent right Non-patented technology Software Trademark Total
I. Original book value
1. Beginning balance 124,135,401.05 435,321.58 289,470,671.25 22,316,899.22 9,728,450.00 446,086,743.11
2. Increase in current period 114,095,830.12 106,410,514.06 1,437,032.79 222,580,569.33
(1) Acquisition 114,095,830.12 1,437,032.79 116,170,055.27
(2) Internal R&D 106,410,514.06 106,410,514.06
(3) Increase in business merger
3. Decrease in current period
(1) Disposal
(2) Impact of exchange rate
changes
4. Ending balance 238,231,231.17 435,321.58 395,881,185.31 23,753,932.01 9,728,450.00 668,030,120.07
II. Accumulated amortization
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1. Beginning balance 11,381,245.40 435,321.58 133,292,923.43 17,038,370.79 4,659,312.50 166,807,173.70
2. Increase in current period 4,297,784.55 57,270,050.06 3,049,788.47 965,550.00 65,583,173.08
(1) Provision 4,297,784.55 57,270,050.06 3,049,788.47 965,550.00 65,583,173.08
3. Decrease in current period
(1) Disposal
4. Ending balance 15,679,029.95 435,321.58 190,562,973.49 20,088,159.26 5,624,862.50 232,390,346.78
III. Provision for impairment
1. Beginning balance
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 222,552,201.22 205,318,211.82 3,665,772.75 4,103,587.50 435,639,773.29
2. Beginning book value 112,754,155.65 156,177,747.82 5,278,528.43 5,069,137.50 279,279,569.40
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end of
the period accounted for 15.93%.
(2) Situation of Land usage right without property certificate of title
Unit: Yuan
Items Book value Reasons for failure to complete certificate of title
Ningbo Plant 30,898,573.26 Under construction
Other description:
27. Development expenditure
Unit: Yuan
Beginning Increase in current period Decrease in current period
Items Ending balance
balance Internal Other Recognized as Transferred to
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development intangible assets current profit
expenditure and loss
Intelligent
45,281,204.14 75,909,919.52 77,296,763.57 43,894,360.09
controller project
Lithium battery
3,803,053.77 10,628,061.51 7,755,872.71 6,675,242.57
project
Motor and control
10,500,319.42 10,500,319.42
system project
Other projects 13,777,521.31 12,868,841.87 21,357,877.78 5,288,485.40
Total 62,861,779.22 109,907,142.32 106,410,514.06 66,358,407.48
Other description:
28. Goodwill
(1) Original book value of goodwill
Unit: Yuan
Name of investee or Increase in current period Decrease in current period
Beginning
matters forming Resulted from Ending balance
balance Disposal
goodwill business merger
Shenzhen YAKO
Automation 107,314,446.71 107,314,446.71
Technology Co., Ltd.
Shenzhen Allied
Control System Co., 53,768,699.68 53,768,699.68
Ltd.
Shenzhen Meanstone
Intelligent 3,006,892.59 3,006,892.59
Technology Co., Ltd.
Hangzhou Zhidong
Motor Technology 1,322,921.77 1,322,921.77
Co., Ltd.
Taixing Ninghui
Lithium Battery Co., 1,962,891.12 1,962,891.12
Ltd.
Shenzhen Tengyi
131,783.24 131,783.24
Industrial Co., Ltd.
Total 165,412,960.75 2,094,674.36 167,507,635.11
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(2) Provision for impairment of goodwill
Unit: Yuan
Name of investee Increase in current period Decrease in current period
Beginning
or matters Ending balance
balance Provision Disposal
forming goodwill
Shenzhen Allied
Control System 53,768,699.68 53,768,699.68
Co., Ltd.
Shenzhen
Meanstone
Intelligent 3,006,892.59 3,006,892.59
Technology Co.,
Ltd.
Total 56,775,592.27 56,775,592.27
Information about the asset group or portfolio of goodwill
None
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:
None
Impact of goodwill impairment test
None
Other description:
None
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 50,816,411.50 26,819,984.79 1,029,895.74 94,763,914.58
Other 280,287.48 464,091.69 356,677.37 387,701.80
Total 72,077,671.09 51,280,503.19 27,176,662.16 1,029,895.74 95,151,616.38
Other description:
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30. Deferred tax assets / deferred tax liabilities
(1) Deferred tax assets without offset
Unit: Yuan
Ending balance Beginning balance
Items Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset
261,692,978.84 40,332,191.17 149,075,252.50 23,312,424.21
impairment
Deductible loss 69,221,226.16 13,336,499.73 43,740,568.84 10,286,420.54
Amortization differences
60,259,563.87 9,038,934.58 36,167,726.46 5,441,721.65
on intangible assets
Deferred income 14,150,200.00 2,122,530.00 14,279,770.00 2,141,965.50
Option fee 253,046,279.23 37,956,941.88 93,402,952.30 14,010,442.85
Total 658,370,248.10 102,787,097.36 336,666,270.10 55,192,974.75
(2) Deferred tax liabilities without offset
Unit: Yuan
Ending balance Beginning balance
Items Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
difference difference
Valuation and
appreciation of assets of
2,589,919.73 388,487.96 5,279,699.53 791,954.93
business merger under
different control
Changes in fair value of
147,744,707.31 22,161,706.10 62,074,391.17 9,311,158.68
tradable financial assets
Book-tax difference of
10,334,504.12 2,570,545.66 3,830,509.95 863,864.88
fixed assets depreciation
Book-tax difference of
4,638,866.49 1,159,716.62 3,411,531.24 852,882.81
rental income
Total 165,307,997.65 26,280,456.34 74,596,131.89 11,819,861.30
(3) Deferred tax assets or liabilities listed by net amount after offset
Unit: Yuan
Items Amount of offset between Ending balance of Amount of mutual offset Beginning balance of
272
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deferred tax assets and deferred tax assets or between deferred tax deferred tax assets or
liabilities at the end of the liabilities after offset assets and liabilities at the liabilities after offset
period beginning of the period
Deferred tax assets 102,787,097.36 55,192,974.75
Deferred tax liabilities 26,280,456.34 11,819,861.30
(4) Details of unrecognized deferred tax assets
Unit: Yuan
Items Ending balance Beginning balance
Deductible temporary differences 6,322,216.54 3,393,804.05
Deductible loss 32,682,476.84 14,481,679.98
Total 39,004,693.38 17,875,484.03
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: Yuan
Year Ending amount Beginning amount Remarks
2022
2023
2024
2025
2026 2,183,482.54
No time limit 30,498,994.30 14,481,679.98
Total 32,682,476.84 14,481,679.98 --
Other description:
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
Advanced engineering
22,516,684.86 22,516,684.86 9,807,616.29 9,807,616.29
funds
Prepayment for fixed
48,511,362.98 48,511,362.98 24,831,739.10 24,831,739.10
assets
Prepayment for 1,013,380.56 1,013,380.56
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intangible assets
Total 72,041,428.40 72,041,428.40 34,639,355.39 34,639,355.39
Other description:
32. Short-term loans
(1) Classification of short-term loans
Unit: Yuan
Items Ending balance Beginning balance
Credit loan 150,321,259.95 102,151,500.00
Letter of credit 250,000,000.00 300,000,000.00
Bills receivable discounted but not due 9,209,847.31
Total 409,531,107.26 402,151,500.00
Description of classification of short-term loans
(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 1,231,106,148.24 715,574,653.91
Total 1,231,106,148.24 715,574,653.91
The total amount of notes payable due but unpaid at the end of the period was 0.00 yuan.
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36. Accounts payable
(1) Accounts payable listed
Unit: Yuan
Items Ending balance Beginning balance
Less than 1 year (including 1 year) 1,493,504,084.34 1,540,652,638.39
1-2 years (including 2 years) 11,697,003.66 7,398,205.08
2-3 years (including 3 years) 4,533,633.55 484,275.57
Above 3 years 1,550,275.01 1,371,220.68
Total 1,511,284,996.56 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
Less than 1 year (including 1 year) 353,895.16 487,267.17
Total 353,895.16 487,267.17
(2) Significant advances received aged over 1 year
□ applicable √ not applicable
38. Contractual liabilities
Unit: Yuan
Items Ending balance Beginning balance
Advances on sales 93,328,006.70 72,576,117.56
Total 93,328,006.70 72,576,117.56
Amount of and reasons for significant changes in book value during the reporting period
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39. Employee compensation payable
(1) Employee compensation payable listed
Unit: Yuan
Items Beginning balance Increase in current period Decrease in current period Ending balance
I. Short-term
174,617,927.43 1,392,579,469.40 1,368,422,777.24 198,774,619.59
compensation
II. Post-employment
benefits - defined 885,836.69 41,106,087.75 41,902,748.01 89,176.43
contribution plan
Total 175,503,764.12 1,433,685,557.15 1,410,325,525.25 198,863,796.02
(2) Short-term compensation listed
Unit: Yuan
Items Beginning balance Increase in current period Decrease in current period Ending balance
1. Wages, bonuses,
173,067,023.16 1,303,110,713.26 1,279,689,007.03 196,488,729.39
allowances and subsidies
2. Employee benefits 261,063.79 30,923,662.71 30,537,277.66 647,448.84
3. Social insurance
231,998.20 38,336,814.21 38,422,135.37 146,677.04
expense
Including: medical
210,694.44 35,472,068.93 35,541,646.15 141,117.22
insurance expense
Industrial injury
13,785.25 892,358.46 902,809.11 3,334.60
insurance expense
Maternity
7,518.51 1,972,386.82 1,977,680.11 2,225.22
insurance expense
4. Housing provident
19,644,540.36 19,644,540.36
fund
5. Trade union funds and
209.26 41,117.54 41,077.51 249.29
staff education funds
8. Others 1,057,633.02 522,621.32 88,739.31 1,491,515.03
Total 174,617,927.43 1,392,579,469.40 1,368,422,777.24 198,774,619.59
(3) Defined contribution plan listed
Unit: Yuan
Items Beginning balance Increase in current period Decrease in current Ending balance
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period
1. Basic endowment
861,046.07 40,208,215.16 40,982,196.73 87,064.50
insurance
2. Unemployment insurance
24,790.62 897,872.59 920,551.28 2,111.93
expense
Total 885,836.69 41,106,087.75 41,902,748.01 89,176.43
Other description:
40. Taxes payable
Unit: Yuan
Items Ending balance Beginning balance
VAT (value-added tax) 1,412,358.17 12,524,919.27
Corporate income tax 435,351.06 41,728,458.33
Individual income tax 13,324,912.30 5,003,297.27
City maintenance and construction tax 145,831.34 188,254.81
Education surcharge 103,910.96 134,467.71
Property tax 751,908.84 429,548.57
Land use tax 174,669.06
Stamp duty and others 80,269.78 72,400.58
Total 16,254,542.45 60,256,015.60
Other description:
41. Other payables
Unit: Yuan
Items Ending balance Beginning balance
Other payables 318,632,275.66 57,160,615.93
Total 318,632,275.66 57,160,615.93
(1) Interest payable
□ applicable √ not applicable
(2) Dividends payable
□ applicable √ not applicable
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(3) Other payables
1) Other payables listed by nature
Unit: Yuan
Items Ending balance Beginning balance
Payment for equipment 28,870,825.20 23,095,663.10
Payment for tooling 965,441.44 654,303.42
Transportation expenses 10,878,639.69 7,252,963.43
Rent and utilities 4,127,402.12 3,105,044.79
Margin, deposit 5,830,893.34 7,034,660.06
Wages for labor dispatching 3,595,257.44 2,150,932.92
Consultation fee 1,283,728.33 1,515,229.67
Fuel card fee 2,977,890.66 1,503,438.82
Payment of decoration 3,254,149.87 6,055,915.48
Restricted share repurchase obligations 242,525,433.60
Other 14,322,613.97 4,792,464.24
Total 318,632,275.66 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
Unit: Yuan
Items Ending balance Beginning balance
Long-term loans due within one year 27,209,500.00
Lease liabilities due within 1 year 20,512,195.74
Total 47,721,695.74
Other description:
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44. Other current liabilities
Unit: Yuan
Items Ending balance Beginning balance
Tax amount to be resold 2,874,899.86
Notes receivable that have been endorsed
104,189,643.96
or discounted but not derecognized
Total 107,064,543.82
Changes in short-term bonds payable: None
45. Long-term loans
(1) Classification of long-term loans
Unit: Yuan
Items Ending balance Beginning balance
Credit loan 318,500,000.00
Pledged borrowings 156,520,000.00 200,000,000.00
Total 475,020,000.00 200,000,000.00
Description of classification long-term loan-term loans:
Additional notes, including interest rate ranges:
46. Bonds payable
(1) Bonds payable
□ applicable √ not applicable
(2) Changes in increase or decrease of bonds payable (excluding preferred shares, perpetual bonds and
other financial instruments classified as financial liabilities)
□ applicable √ not applicable
(3) Description of conversion conditions and time of convertible corporate bond
□ applicable √ not applicable
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(4) Description of other financial instruments classified as financial liabilities
□ applicable √ not applicable
47. Lease liabilities
Unit: Yuan
Items Ending balance Beginning balance
Housing and building rents 40,290,402.14 30,939,385.41
Total 40,290,402.14 30,939,385.41
Other description:
48. Long-term accounts payable
Unit: Yuan
Items Ending balance Beginning balance
(1) Long-term payables listed according to the nature of the payment
□ applicable √ not applicable
(2) Special payable
□ applicable √ not applicable
49. Long-term employee compensation payable
(1) Long-term payroll payable table
□ applicable √ not applicable
(2) Changes in the defined benefit plan
□ applicable √ not applicable
50. Estimated liabilities
□ applicable √ not applicable
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51. Deferred income
Unit: Yuan
Increase in current Decrease in current Reasons for
Items Beginning balance Ending balance
period period formation
Governmental
Governmental
14,624,770.00 3,120,700.00 3,360,270.00 14,385,200.00 subsidies related to
subsidies
assets
Total 14,624,770.00 3,120,700.00 3,360,270.00 14,385,200.00 --
Items involving government subsidies:
Unit: Yuan
Amount
Amount Amount of
New subsidy included in
included in write-down
Beginning amount in non-operating Other Ending
Liability items other income costs in Asset-related/revenue-related
balance current income in changes balance
in current current
period current
period period
period
Special fund for the
industrialization of
high-efficiency
energy-saving 1,300,000.00 195,000.00 1,105,000.00 Asset-related
rare-earth
permanent magnet
motor
R&D equipment
project of
intelligent home
management 394,500.00 263,000.00 131,500.00 Asset-related
system such as IoT
cloud computing
technology
R&D project of
key technology for
clean energy DC 225,000.00 50,000.00 175,000.00 Asset-related
system
measurement
Nano lithium iron
phosphate power 750,000.00 250,000.00 500,000.00 Asset-related
battery project
Key technology
561,000.00 204,000.00 357,000.00 Asset-related
research and
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development of
18650-2.8A.h high
power battery
Intelligent grid
connected project
of distributed 120,000.00 60,000.00 60,000.00 Asset-related
photovoltaic power
station
R&D project of
60A solar charging
controller with
530,000.00 120,000.00 410,000.00 Asset-related
peak power
tracking
technology
R&D project of
unmanned Robot 3,000,000.00 450,000.00 2,550,000.00 Asset-related
Cleaner
Key technology
research and
development
project of
rare-earth
permanent magnet 4,000,000.00 4,000,000.00 Asset-related
brushless DC
motor and
controller with high
speed ratio and
variable frequency
Monthly
Acceptance
Amortization of
Huizhou
Anti-epidemic
3,744,270.00 832,060.00 2,912,210.00 Asset-related
National Debt
Technical
Transformation
Project in 2006 for
5 Years
Monthly
Acceptance
3,120,700.00 936,210.00 2,184,490.00 Asset-related
Amortization of
Technical
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Transformation
Project of
Intelligent
Controller in
Huizhou Province
and Technical
Transformation of
Lithium Battery
Automation
Production Line in
2006 for 5 Years
Total 14,624,770.00 3,120,700.00 3,360,270.00 14,385,200.00
Other description:
52. Other non-current liabilities
□ applicable √ not applicable
53. Share capital
Unit: Yuan
Increase and decrease of change this time (+, -)
Conversion of
Beginning balance Issuance of new Stock accumulation Ending balance
Other Subtotal
shares dividend fund into
shares
Total number
1,135,216,809.00 110,810,663.00 10,950,600.00 121,761,263.00 1,256,978,072.00
of shares
Other description:
Note: The share capital increased by CNY 121,761,263.00 yuan in the current period, including CNY
92,105,263.00 yuan due to the non-public issuance of shares, CNY 18,705,400.00 yuan due to the implementation
of restricted stock incentives, and CNY 10,950,600.00 yuan due to the exercise of stock options.
54. Other equity instruments
(1) Basic information of preferred shares, perpetual bonds and other financial instruments issued at the
end of the period
□ applicable √ not applicable
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(2) Changes in preferred shares, perpetual bonds and other financial instruments issued at the end of the
period
□ applicable √ not applicable
55. Capital reserve
Unit: Yuan
Items Beginning balance Increase in current period Decrease in current period Ending balance
Capital premium (share
936,582,920.43 1,139,848,687.71 2,076,431,608.14
premium)
Other capital reserve 32,787,972.41 52,097,203.15 21,263,633.96 63,621,541.60
Total 969,370,892.84 1,191,945,890.86 21,263,633.96 2,140,053,149.74
Other description, including the changes in increase and decrease in current period and the reasons for changes:
Note 1: The share premium increased by CNY 1,139,848,687.71 yuan this year, including: CNY
143,802,067.92 yuan due to the subscription of restricted shares by the company, and CNY 996,046,619.79 yuan,
which is transferred to the share premium due to the unlocking of options, and was previously included in other
capital reserves as the options tariff.
Note 2: Other capital surplus was increased by 52,097,203.21 yuan during the year, of which: 31,425,929.41
yuan of share-based payment expense was recognized during the period under the stock option plan and issuance
of restricted stock; 20,671,273.74 yuan of deferred tax assets was recognized based on the pre-tax deductible
stock option expense expected to be exercised in the future. Other capital reserves decreased by CNY
9,575,974.17 yuan this year, including CNY 9,183,384.00 due to the capital premium transferred from the
exercise of stock options; CNY 392,590.17 due to the resignation of incentive objects and the resulting reversal of
share payment expenses; CNY 11,699,698.63 yuan due to the fact that Shenzhen YAKO Automation Technology
Co., Ltd. adjusted the capital increase of minority shareholders, affecting the capital reserve at the merger level;
CNY 1,759,546.07 yuan due to the fact that Shenzhen Mintai Intelligent Technology Co., Ltd. adjusted the capital
increase of minority shareholders, affecting the capital reserve at the merger level; CNY 1,771,584.91 yuan at the
merger level due to the acquisition of Ninghui Lithium Battery Co., Ltd.
56. Treasury shares
Unit: Yuan
284
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Items Beginning balance Increase in current period Decrease in current period Ending balance
Restricted share
242,525,433.60 242,525,433.60
repurchase obligations
Repurchase of company
shares in competitive 80,017,965.68 80,017,965.68
trading
Total 80,017,965.68 242,525,433.60 80,017,965.68 242,525,433.60
Other description, including the changes in increase and decrease in current period and the reasons for changes:
Note: The increase of treasury shares in this period is caused by the accrued restricted stock repurchase
obligation of CNY 242,525,433.60 yuan due to the implementation of stock ownership incentive by major
companies.
57. Other comprehensive income
Unit: Yuan
Amount incurred in current period
Minus: current Minus: current
profits and retained
losses earnings
Minus: Attributable to Attributable
Beginning Amount before included in included in Ending
Items income parent to minority
balance income tax in other other balance
tax company after shareholders
current period comprehensive comprehensive
expense tax after tax
income in the income in the
previous previous
period period
(II) Other
comprehensive
income that is -24,555,229.97 -67,324,542.05 -48,275.14 -67,276,266.91 -91,831,496.88
reclassified into
profits and losses
Translation
difference of
-30,124,805.01 -62,076,801.28 -62,076,801.28 -92,201,606.29
foreign currency
financial statements
Other 5,569,575.04 -5,247,740.77 -48,275.14 -5,199,465.63 370,109.41
Total amount of
other
-24,555,229.97 -67,324,542.05 -48,275.14 -67,276,266.91 -91,831,496.88
comprehensive
income
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Other description, including the adjustment to the effective portion of the profit and loss of cash flow
hedging transferred to the amount initially recognized for the hedged item:
58. Special reserve
□ applicable √ not applicable
59. Surplus reserve
Unit: Yuan
Decrease in current
Items Beginning balance Increase in current period Ending balance
period
Statutory surplus reserve 151,359,957.53 35,037,674.23 186,397,631.76
Total 151,359,957.53 35,037,674.23 186,397,631.76
Explanation of the surplus reserve, including the increase or decrease in the current period and the reasons for the
change:
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
Total undistributed profit at the beginning of the
-19,061,969.80 -17,706,279.40
period (+ for increase, - for decrease)
Undistributed profit at the beginning of last period
1,305,882,400.11 848,595,652.71
after adjustment
Plus: net profit attributable to the owners of the
564,964,282.18 532,161,123.64
parent company in current period
Minus: withdrawal of statutory surplus reserve 35,037,674.23 24,075,745.79
Common Stock dividends payable 56,565,524.45 50,798,630.45
Undistributed profit at the end of the period 1,779,243,483.61 1,305,882,400.11
Details of undistributed profit at the beginning of adjustment period:
1) Due to the retroactive adjustment of Accounting Standards for Business Enterprises and related new
regulations, the undistributed profit at the beginning of the period was 0.00 yuan.
2) Due to the change of accounting policy, the undistributed profit at the beginning of the period was 0.00 yuan.
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3) Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was
-19,061,969.80 yuan.
4) Due to the change in merger under the same control, the undistributed profit at the beginning of the period was
0.00 yuan.
5) The undistributed profit at the beginning of the period was 0.00 yuan with other adjustments.
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 7,717,976,814.04 6,107,767,617.78 5,509,664,078.91 4,183,169,715.86
Other business 49,058,020.99 6,763,737.09 50,518,919.30 21,124,114.91
Total 7,767,034,835.03 6,114,531,354.87 5,560,182,998.21 4,204,293,830.77
Whether the lower of audited net income before or after deducting the non-recurring profit and loss is negative
□ Yes √ No
Income-related information:
Unit: Yuan
Contract classification Intelligent Control Division Total
Including:
Tool 2,994,451,368.50 2,994,451,368.50
Home appliances 2,959,263,866.21 2,959,263,866.21
New energy 1,241,478,904.30 1,241,478,904.30
Industry 295,153,637.29 295,153,637.29
Intelligent solutions 221,269,657.19 221,269,657.19
Other 55,417,401.54 55,417,401.54
Total 7,767,034,835.03 7,767,034,835.03
Including:
Domestic 3,427,652,622.28 3,427,652,622.28
Foreign 4,339,382,212.75 4,339,382,212.75
Total 7,767,034,835.03 7,767,034,835.03
Including:
Transfer at a certain point 7,767,034,835.03 7,767,034,835.03
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Information related to performance obligations:
Not applicable
Information related to the transaction price allocated to the remaining performance obligations:
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 0.00 yuan, and 0.00 yuan is expected to be
recognized within one year.
Other description:
62. Taxes and surcharges
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
City maintenance and construction tax 9,880,306.75 6,324,873.31
Education surcharge 7,057,104.39 4,517,766.67
Property tax 7,220,449.07 6,798,046.02
Land use tax 768,937.95 761,833.73
Stamp duty 4,088,571.43 3,161,739.96
Other 38,498.12 126,323.00
Total 29,053,867.71 21,690,582.69
Other description:
63. Sales expenses
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Employee compensation 117,940,781.05 84,228,078.15
Low-value consumables 4,721,582.36 1,518,012.92
Business entertainment expenses 16,931,032.05 11,324,256.98
Travel expenses 11,055,029.71 7,151,311.70
Intermediary service expenses 19,280,507.23 12,857,876.78
Exhibition expenses 2,256,350.43 1,883,321.83
Materials expenses 12,365,975.47 4,981,728.64
Mail expenses 3,187,394.23 2,083,622.84
Option fee 4,731,183.73 1,070,281.42
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Advertising expenses 4,568,296.26 585,897.69
Customs charges 2,542,454.90 1,315,519.21
Rentals 1,980,077.01 1,144,877.48
Other 7,002,154.67 2,753,648.06
Total 208,562,819.10 132,898,433.70
Other description:
64. Administrative expenses
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Employee compensation 155,978,506.36 101,669,023.72
Decoration cost 17,168,830.94 15,080,374.60
Intermediary service expenses 12,359,796.94 11,006,233.18
Depreciation and amortization 19,379,537.14 15,388,899.93
Rent and utilities 6,233,831.28 4,678,076.32
Low-value consumables 2,819,301.47 4,814,426.22
Property insurance expenses 4,833,375.18 3,943,952.43
Office expenses 8,227,084.07 4,856,861.79
Option fee 10,472,082.30 4,922,832.16
Travel expenses 4,686,846.18 2,851,141.72
Recruitment expenses 2,814,710.51 1,761,794.56
Royalties 3,844,108.79 4,013,172.39
Business entertainment expenses 1,936,130.95 951,643.69
Maintenance fees 2,493,243.02 2,283,380.83
Other 5,097,646.76 5,835,657.65
Total 258,345,031.89 184,057,471.19
Other description:
65. R&D expenses
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Employee compensation 270,040,042.63 209,691,514.52
Depreciation and amortization 67,822,294.92 47,941,714.20
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Material expenses 32,453,761.31 17,494,266.42
Option fee 13,876,403.61 4,721,777.37
Tooling expense 19,674,097.73 4,480,409.98
Intermediary service expenses 8,558,169.27 4,028,380.25
Low-value consumables 5,380,174.29 5,367,907.74
Testing expense 6,429,992.15 5,009,617.91
Decoration cost 3,724,447.95 3,624,175.64
Utilities 4,942,111.11 2,880,537.35
Travel expenses 4,141,146.62 3,210,677.11
Rentals 1,266,488.74 1,876,088.61
Other 11,640,921.78 7,215,587.05
Total 449,950,052.11 317,542,654.15
Other description:
66. Financial expenses
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Interest expense 24,677,917.47 41,611,921.13
Minus: interest income 8,722,530.08 7,457,090.20
Exchange gains (loss marked with "-") 44,680,917.00 98,517,832.20
Handling fee and others 3,149,246.09 44,313,350.36
Total 63,785,550.48 176,986,013.49
Other description:
67. Other revenues
Unit: Yuan
Source for other revenues Amount incurred in current period Amount incurred in prior period
Governmental subsidies 16,456,682.22 27,326,933.85
Added-value tax refund on demand 8,646,329.13 7,158,399.28
Return of individual income tax service
1,105,035.34 766,726.03
charge
Other 13,534.31
Total 26,208,046.69 35,265,593.47
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68. Investment revenue
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Long-term equity investment revenue
-2,883,400.31 -360,946.80
accounted by equity method
Investment revenue of tradable financial assets
38,226,720.08 230,366,485.41
during holding period
Investment revenue of financial products 9,914,763.48 5,602,702.63
Forward foreign exchange contract settlement
9,569,000.00 22,970,000.00
profit and loss
Total 54,827,083.25 258,578,241.24
Other description:
69. Net exposure hedging revenue
□ applicable √ not applicable
70. Fair value change revenue
Unit: Yuan
Sources of income from change in fair value Amount incurred in current period Amount incurred in prior period
Tradable financial assets 85,670,316.15 -105,561,454.64
Total 85,670,316.15 -105,561,454.64
Other description:
71. Credit impairment loss
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Bad debt loss of other receivables -3,478,279.55 1,590,385.44
Bad debt loss of receivables -81,957,775.77 9,229,256.64
Bad debt loss of commercial acceptance bill -157,573.76 -172,417.86
Total -85,593,629.08 10,647,224.22
Other description:
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72. Asset impairment loss
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
II. Loss on inventory valuation and contract
-99,995,344.56 -64,732,329.22
performance cost impairment loss
XI. Goodwill impairment loss -34,531,349.37
Total -99,995,344.56 -99,263,678.59
Other description:
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 assets -415,086.11 -932,817.83
Right-of-use asset derecognition 10,696.36
Total -404,389.75 -932,817.83
74. Non-operating income
Unit: Yuan
Amount included in the current
Items Amount incurred in current period Amount incurred in prior period
non-recurring profit and loss
Accepting donations 22,475.87 22,475.87
Quality deduction income 59,263.20 10,645.00 59,263.20
Other 2,178,616.67 3,080,907.14 2,178,616.67
Total 2,260,355.74 3,091,552.14 2,260,355.74
Government subsidy included in the current profits and losses:
Unit: Yuan
Whether the
Amount Amount
subsidy affect Whether it is Asset-related/
incurred in incurred in
Subsidy project Grant entity Grant reasons Nature type the profit and the special revenue-relat
the current the last
loss of the subsidy ed
period period
year
Added-value tax Related to
8,646,329.13 7,158,399.28
refund on demand revenue
Return of Related to
1,105,035.34 766,726.03
individual income revenue
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tax service charge
Technological
transformation
supported by 2020 832,060.00 416,030.00 Asset-related
anti-epidemic
national debt funds
R&D equipment
project of
intelligent home
management 263,000.00 263,000.00 Asset-related
system such as IoT
cloud computing
technology
Nano lithium iron
phosphate power 250,000.00 250,000.00 Asset-related
battery project
High rate
18650-2.8Ah
power battery key
technology 204,000.00 204,000.00 Asset-related
research and
development
project
Special fund for the
industrialization of
high-efficiency
energy-saving 195,000.00 195,000.00 Asset-related
rare-earth
permanent magnet
motor
R&D project of
60A solar charging
Related to
controller with 120,000.00 120,000.00
revenue
peak power
tracking technology
Intelligent grid
connected project
of distributed 60,000.00 60,000.00 Asset-related
photovoltaic power
station
R&D project of key
50,000.00 50,000.00 Asset-related
technology for
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clean energy DC
system
measurement
R&D project of
unmanned Robot 450,000.00 Asset-related
Cleaner
Special fund for
intelligent
controller and Related to
936,210.00
lithium battery revenue
technology
transformation
Return of
Related to
unemployment 5,991,047.80
revenue
insurance premium
Training replaced
Related to
for operation 288,500.00 2,709,000.00
revenue
subsidy
Support and
subsidy for
enterprises to Related to
2,476,845.00 2,511,000.00
expand production revenue
and increase
efficiency
Enterprise
Related to
development and 1,699,000.00 2,199,800.00
revenue
research funding
Export credit Related to
1,031,335.00 2,052,992.00
insurance subsidy revenue
Industrial and
Related to
commercial 459,804.80 1,629,404.77
revenue
electricity subsidy
Two-tax financial Related to
1,540,000.00
subsidy revenue
Position
Related to
stabilization 231,269.09 1,311,398.13
revenue
subsidy
Technical
transformation and Related to
150,000.00 950,000.00
improvement revenue
project funding
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Special funds for
foreign trade Related to
543,789.00 655,162.00
development of revenue
enterprises
Support and
Related to
subsidiary for 520,000.00
revenue
emerging industries
Denglinghui
Related to
multiplying plan 500,000.00
revenue
subsidy
Industrial Internet
Related to
development 350,000.00
revenue
support plan
Reward for scale
Related to
growth of industrial 500,000.00 300,000.00
revenue
enterprises
2020 Science and
Technology Related to
296,300.00
Finance Subsidy revenue
Scheme Project
Double promotion
funding for
technically
Related to
innovative 340,000.00 280,000.00
revenue
doubling special
funding plan
quality brand
Related to
Filing subsidy 50,000.00 270,000.00
revenue
Special fund for
Huizhou industry
and informatization
Related to
issued by Zhongkai 250,000.00 250,000.00
revenue
Economic
Development
Bureau
Subsidy for
recognition of
Related to
high-tech 200,000.00
revenue
enterprises for
counseling services
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Steady growth Related to
200,000.00
subsidy revenue
Related to
Patent subsidy 287,750.00 169,500.00
revenue
Pre-position Related to
127,600.00
training subsidy revenue
Sub-item funds for
energy Related to
56,073.15
conservation and revenue
emission reduction
Enterprise
high-tech enterprise Related to
50,000.00 50,000.00
recognition award revenue
subsidy
Related to
Exhibition subsidy 68,400.00 5,000.00
revenue
National
Related to
Innovation Carrier 2,000,000.00
revenue
Support Program
Promotion of Related to
300,000.00
financial aid revenue
Growth incentive Related to
1,600,000.00
fund in 2020 revenue
Financial support
fund of Xinqiao
Related to
Town of Songjiang 170,000.00
revenue
District of
Shanghai
Related to
Other projects 599,719.33 658,160.31
revenue
26,208,046.6 35,265,593.4
Total
9 7
Other description:
75. Non-operating expenses
Unit: Yuan
Amount incurred in current Amount included in the current
Items Amount incurred in prior period
period non-recurring profit and loss
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External donations 300,000.00 300,000.00
Profits and losses on disposal of
384,846.54 1,229,856.20 384,846.54
non-current assets
Customer quality deduction
4,211,737.26 3,257,648.65 4,211,737.26
expenditure
Other 641,709.14 570,326.97 641,709.14
Total 5,538,292.94 5,057,831.82 5,538,292.94
Other description:
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 47,133,452.67 93,853,943.96
Deferred tax expense 994,237.09 -20,949,784.64
Total 48,127,689.76 72,904,159.32
(2) Adjustment process of accounting profit and income tax expense
Unit: Yuan
Items Amount incurred in current period
Total profits 620,240,304.37
Income tax expenses calculated at statutory / applicable tax rates 93,036,045.66
Impact of different tax rates on subsidiaries -6,293,349.43
Effect of income tax adjustment in previous period -3,658,050.20
Impact of non-taxable income 79,120.24
Impact of non-deductible costs, expenses and losses 1,332,705.87
Impact of deductible temporary difference or deductible loss of
2,086,012.87
unrecognized deferred tax assets in the current period
The impact of changes in tax rates on the initial balance of deferred
716,712.84
income tax
Impact of additional deductible expenses -29,431,470.21
Impact of tax exemption policy for companies in Vietnam -12,333,706.67
Effects of deductable temporary difference and deductable losses of
531,342.96
deferred tax recognized in previous years
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Impact of other adjustments 2,062,325.84
Income tax expenses 48,127,689.76
Other description:
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
Intercourse funds 51,529,019.88 7,457,090.20
Interest income 8,722,530.08 31,929,203.85
Governmental subsidies 16,217,112.22 16,606,451.15
Other 3,784,144.14 5,887,567.72
Deposit and earnest money received 3,213,112.84 12,076,403.76
Housing subsidy for talents 6,277,563.00 25,603,304.78
Total 89,743,482.16 99,560,021.46
Description of other cash received related to operating activities:
(2) Other cash paid related to operating activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Service charge 3,149,246.09 2,319,492.32
Management expenses 55,426,043.19 53,061,394.35
Research and development expenses 126,948,109.79 55,001,890.87
Sales expenses 91,330,261.82 47,229,489.36
Margin and deposit expenses 15,969,153.96 9,802,400.50
Other 8,980,140.75 15,888,925.52
Total 301,802,955.60 183,303,592.92
Description of other cash paid related to operating activities:
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(3) Other cash received related to investment activities
□ applicable √ not applicable
(4) Other cash paid related to investment activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Individual income tax on acquisition of
20,016,000.00
shares
Total 20,016,000.00
Description of other cash paid related to investment activities:
(5) Other cash received related to financing activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Margins for bills and notes 18,039,024.44 51,476,244.39
Bills receivable discounted but not due 9,209,847.31
Total 27,248,871.75 51,476,244.39
Description of other cash received related to funding activities:
(6) Other cash paid related to financing activities
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
Margins for bills and notes 25,597,956.24 18,039,024.44
Stock issue cost 1,266,137.03
Repurchase of treasury stock 20,008,353.16
Lease payments paid 13,333,649.93
Total 40,197,743.20 38,047,377.60
Description of other cash paid related to funding activities:
79. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Unit: Yuan
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Supplementary information Current amount Amount of the previous period
1.Adjusting net profit to cash flow from operating activities: -- --
Net profit 572,112,614.61 546,576,681.09
Plus: Impairment of assets 184,862,507.33 88,616,454.37
Depreciation of fixed assets, depletion of oil and gas assets as
106,211,599.68 80,597,211.85
well as depreciation of productive biological assets
Depreciation of right-of-use assets 16,234,413.73
Amortization of intangible assets 65,392,596.89 54,282,270.44
Amortization of long-term deferred expenses 27,180,925.99 15,207,218.24
Losses from disposal of fixed assets, intangible assets and other
415,188.40 932,817.83
long-term assets (income marked with “-”)
Losses on scrapping of fixed assets (income marked with “-”) 374,047.89 1,229,856.20
Loss from fair value change (income marked with “-”) -85,670,316.15 105,561,454.64
Financial expenses (income marked with “-”) 52,717,851.97 93,764,044.38
Return on investment (loss marked with "-") -54,827,083.25 -258,578,241.24
Decrease in deferred tax assets (increase marked with “-”) -12,739,891.64 -5,331,660.91
Increase in deferred tax liabilities (decrease marked with “-”) 14,523,480.93 -15,619,358.99
Decrease in inventory (increase marked with “-”) -1,161,081,258.04 -673,392,280.59
Decrease in operating receivables (increase marked with “-”) -593,959,509.24 -510,665,644.85
Increase in operating payables (decrease marked with “-”) 608,846,276.29 1,115,511,120.73
Other 34,844,008.75 9,208,765.19
Net cash flow from operating activities -224,562,545.86 647,900,708.38
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 1,736,104,958.20 1,196,835,834.92
Minus: beginning balance of cash 1,196,835,834.92 761,845,320.49
Plus: Ending balance of cash equivalents
Minus: beginning balance of cash equivalents
Net increase in cash and cash equivalents 539,269,123.28 434,990,514.43
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(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
15,587,383.24
combination occurring in the current period
Including: --
Taixing Ninghui Lithium Battery Co., Ltd. 15,365,383.24
Shenzhen Tengyi Industrial Co., Ltd. 222,000.00
Minus: cash and cash equivalents held by the subsidiary on the date
1,037,613.21
of purchase
Including: --
Including: --
Net cash paid for acquirement of subsidiaries 14,549,770.03
Other description:
(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
I. Cash 1,736,104,958.20 1,196,835,834.92
III. Balance of cash and cash equivalents at
1,736,104,958.20 1,196,835,834.92
the end of the period
Other description:
80. Notes to items in change statement of owner’s equity
Describe the names and adjusted amounts of "other" items that adjusted the closing balance of the previous year:
□ applicable √ not applicable
81. Assets with limited ownership or use right
Unit: Yuan
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Items Book value at the end of the period Restricted reasons
Security deposit used for applying to the bank
Monetary capital 31,475,097.87 for issuing bills and letters of guarantee, and
the funds frozen in labor arbitration
Notes pledged to the bank due to the
Notes receivable 4,466,422.16 application to the bank for the issuance of
notes
Fixed assets 245,121,797.68 Mortgage housing loan
Total 281,063,317.71 --
Other description:
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: Yuan
Foreign currency balance at the end Balance converted into RMB at
Items Conversion rate
of the period the end of the period
Monetary capital -- --
Including: USD 72,228,950.81 6.3757 460,510,131.02
Euro 1,726,388.63 7.2197 12,464,008.00
Hong Kong Dollar 198,996.13 0.8176 162,699.24
Indian rupee 559,042,303.93 0.0857 47,897,413.38
Vietnamese dong 52,702,580,152.00 0.0003 14,756,722.44
Japanese Yen 4,750,644.00 0.0554 263,256.94
Romanian Leu 95,485.52 1.4581 139,230.88
Mexican Peso 104,962.44 0.3116 32,708.77
Accounts receivable -- --
Including: USD 163,210,123.54 6.3757 1,040,578,805.41
Euro 1,265,108.55 7.2197 9,133,704.20
Hong Kong Dollar 2,951,083.29 0.8176 2,412,805.72
Vietnamese dong 77,610,399,338.00 0.0003 21,730,911.81
Indian rupee 373,111,525.00 0.0857 31,967,306.99
Receivables financing
Including: USD 1,510,654.47 6.3757 9,631,479.90
Accounts payable
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Including: USD 14,992,451.78 6.3757 95,587,376.72
Hong Kong Dollar 35,810.06 0.8176 29,278.31
Vietnamese dong 59,184,893,993.00 0.0003 16,571,770.32
Indian rupee 72,157,556.80 0.0857 6,182,287.64
Long-term loans -- --
Including: USD
Euro
Hong Kong Dollar
Other description:
(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;
6. QBPTE.LTD, the grandson company of Topband, is located in Singapore, with Singapore dollar as the
bookkeeping base currency;
7. TOPBAND SMART EUROPE COMPANY LIMITED SRL., the grandson company of Topband, is located in
Timisoara, Romania, with Lei as the bookkeeping base currency;
8. TOPBAND MEXICO, S.DE RLDEC.V, the grandson company of Topband, is located in Monterrey, Mexico,
with peso as the bookkeeping base currency.
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83. Hedging
The qualitative and quantitative information on hedging items, related hedging instruments, and hedged risks is
disclosed according to the type of hedging:
84. Government subsidies
(1) Basic information of government subsidies
Unit: Yuan
Items Amount included in current
Category Amount
presented profit and loss
Technological transformation supported by 2020 anti-epidemic national Deferred
832,060.00 832,060.00
debt funds income
R&D equipment project of intelligent home management system such as Deferred
263,000.00 263,000.00
IoT cloud computing technology income
Deferred
Nano lithium iron phosphate power battery project 250,000.00 250,000.00
income
High rate 18650-2.8Ah power battery key technology research and Deferred
204,000.00 204,000.00
development project income
Special fund for the industrialization of high-efficiency energy-saving Deferred
195,000.00 195,000.00
rare-earth permanent magnet motor income
R&D project of 60A solar charging controller with peak power tracking Deferred
120,000.00 120,000.00
technology income
Deferred
Intelligent grid connected project of distributed photovoltaic power station 60,000.00 60,000.00
income
Deferred
R&D project of key technology for clean energy DC system measurement 50,000.00 50,000.00
income
Deferred
R&D project of unmanned Robot Cleaner 450,000.00 450,000.00
income
Special fund for intelligent controller and lithium battery technology Deferred
936,210.00 936,210.00
transformation income
Added-value tax refund on demand 8,646,329.13 Other income 8,646,329.13
Return of individual income tax service charge 1,105,035.34 Other income 1,105,035.34
Training replaced for operation subsidy 288,500.00 Other income 288,500.00
Support and subsidy for enterprises to expand production and increase
2,476,845.00 Other income 2,476,845.00
efficiency
Enterprise development and research funding 1,699,000.00 Other income 1,699,000.00
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Export credit insurance subsidy 1,031,335.00 Other income 1,031,335.00
Industrial and commercial electricity subsidy 459,804.80 Other income 459,804.80
Position stabilization subsidy 231,269.09 Other income 231,269.09
Technical transformation and improvement project funding 150,000.00 Other income 150,000.00
Special funds for foreign trade development of enterprises 543,789.00 Other income 543,789.00
Reward for scale growth of industrial enterprises 500,000.00 Other income 500,000.00
Double promotion funding for technically innovative doubling special
340,000.00 Other income 340,000.00
funding plan quality brand
Filing subsidy 50,000.00 Other income 50,000.00
Special fund for Huizhou industry and informatization issued by Zhongkai
250,000.00 Other income 250,000.00
Economic Development Bureau
Patent subsidy 287,750.00 Other income 287,750.00
Enterprise high-tech enterprise recognition award subsidy 50,000.00 Other income 50,000.00
Exhibition subsidy 68,400.00 Other income 68,400.00
National Innovation Carrier Support Program 2,000,000.00 Other income 2,000,000.00
Promotion of financial aid 300,000.00 Other income 300,000.00
Growth incentive fund in 2020 1,600,000.00 Other income 1,600,000.00
Financial support fund of Xinqiao Town of Songjiang District of Shanghai 170,000.00 Other income 170,000.00
Other projects 599,719.33 Other income 599,719.33
(2) Situation of government subsidies refund
□ applicable √ not applicable
Other description:
85. Others
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
Basis for Revenue of Net profit of
Ratio of Equity
Name of Date of equity Cost of equity Date of determination the acquiree acquiree from
equity acquired
acquiree acquired acquired purchasing of acquisition from the date the acquisition
acquired via
date of purchasing date to the end
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to the end of of the period
the period
Investment
Taixing Merger of
agreement and
Ninghui enterprises
February 5, February 5, industrial and
Lithium 33,400,000.00 83.50% under 26,725,657.01 -4,005,560.30
2021 2021 commercial
Battery Co., different
change
Ltd. control
registration
Investment
Merger of
Shenzhen agreement and
enterprises
Tengyi February 4, February 4, industrial and
222,000.00 100.00% under 16,268,795.85 -4,186,494.10
Industrial Co., 2021 2021 commercial
different
Ltd. change
control
registration
Other description:
(2) Merging cost and goodwill
Unit: Yuan
Merging cost Taixing Ninghui Lithium Battery Co., Ltd. Shenzhen Tengyi Industrial Co., Ltd.
--Cash 33,400,000.00 222,000.00
Total merging cost 33,400,000.00 222,000.00
Minus: share of fair value of the net
19,649,232.19 90,216.76
identifiable assets acquired
The amount of which the goodwill/merging
cost is less than the share of fair value of 1,962,891.12 131,783.24
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:
The main reasons for the formation of large-denomination goodwill:
Other description:
(3) Identifiable assets and liabilities of the acquiree
Unit: Yuan
Taixing Ninghui Lithium Battery Co., Ltd. Shenzhen Tengyi Industrial Co., Ltd.
Fair value on the Book value on the Fair value on the Book value on the
acquisition date acquisition date acquisition date acquisition date
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Monetary capital 1,037,613.21 1,037,613.21 40,216.76 40,216.76
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 19,649,232.19 19,649,232.19 90,216.76 90,216.76
Net assets acquired 19,649,232.19 19,649,232.19 90,216.76 90,216.76
Methods for determining the fair value of identifiable assets and liabilities:
Contingent liabilities of the acquiree assumed in a business merger:
Other description:
(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
(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
Not applicable
(6) Other description
2. Merger of enterprises under the same control
(1) Merger of enterprise under the same control occurred in the current period
□ applicable √ not applicable
(2) Combined cost
Other description:
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(3) The book value of the assets and liabilities of the merged party on the combining date
□ applicable √ not applicable
3. Reverse purchase
Basic information of the transaction, the basis for the reverse purchase of the transaction, whether the assets and
liabilities retained by the listed company constitute the business and its basis, the determination of the merger cost,
the amount of the adjustment of the equity when the transaction is processed as an equity transaction and its
calculation:
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
Explanations for the changes in the scope of the merger caused by other reasons (e.g., establishment of new
subsidiaries, or liquidation of subsidiaries, etc.) and relevant circumstances:
1. Newly-established subsidiary (grandson) company
During the reporting period, the company established a total of 7 new subsidiaries (grandson companies), as
follows:
Shareholding proportion (%)
No. Name of subsidiary Registered place Registration date
Direct Indirect
1 Q.B.PTE.LTD Singapore 2020-1-6 100
2 TOPBAND MEXICO,S.DE R.L.DE C.V. Mexico 2020-9-30 100
3 TOPBAND SMART EUROPE COMPANY Romania 2020-03-13 100
LIMITED S.R.L.
4 Tulu Innovation (Hong Kong) Limited Hong Kong 2020-03-16 100
5 TUNNU INNOVATION,INC the United States 2020-04-08 100
6 Topband (Qingdao) Intelligent Control Co., Qingdao 2020-09-07 100
Ltd.
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7 Shenzhen Topband Automotive Electronics Shenzhen 2020-10-29 100
Co., Ltd.
6. Others
IX. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of enterprise group
Principal Shareholding
Registered Nature of Acquisition
Name of subsidiary place of proportion
place business method
business Direct Indirect
Production
Shenzhen Topband Software Technology Co., Ltd. Shenzhen Shenzhen 100.00% Establishment
and sales
Shenzhen Topband Automation Technology Co., Production
Shenzhen Shenzhen 100.00% Establishment
Ltd. and sales
Production
Shenzhen Topband Battery Co., Ltd. Shenzhen Shenzhen 100.00% Establishment
and sales
Production
Chongqing Topband Industrial Co., Ltd. Chongqing Chongqing 100.00% Establishment
and sales
Hong Hong
Topband (Hong Kong) Co., Ltd. Investment 100.00% Establishment
Kong Kong
Production
Huizhou Topband Electrical Technology Co., Ltd. Huizhou Huizhou 100.00% Establishment
and sales
TOPBAND INDIA PRIVATE LIMITED India India Sales 100.00% Establishment
Merger of
Production
Shenzhen YAKO Automation Technology Co., Ltd. Shenzhen Shenzhen 71.54% enterprises under
and sales
different control
Merger of
Production
Shenzhen Allied Control System Co., Ltd. Shenzhen Shenzhen 100.00% enterprises under
and sales
different control
Production
Huizhou Topband Lithium Battery Co., Ltd. Huizhou Huizhou 100.00% Establishment
and sales
Production
Ningbo Topband Intelligent Control Co., Ltd. Ningbo Ningbo 100.00% Establishment
and sales
Merger of
Shenzhen Meanstone Intelligent Technology Co., Production
Shenzhen Shenzhen 77.25% enterprises under
Ltd. and sales
different control
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Merger of
Production
Shenzhen Yansheng Software Co., Ltd. Shenzhen Shenzhen 71.54% enterprises under
and sales
different control
Merger of
Production
Hangzhou Zhidong Motor Technology Co., Ltd. Hangzhou Hangzhou 53.66% enterprises under
and sales
different control
Production
Topband（Vietnam)Co.,ltd Vietnam Vietnam 100.00% Establishment
and sales
TOPBAND SMART DONG NAI (VIETNAM) Production
Vietnam Vietnam 100.00% Establishment
COMPANY LIMITED and sales
Topband Germany GmbH Germany Germany Sales 100.00% Establishment
TOPBAND JAPAN Co.,Ltd Japan Japan Sales 100.00% Establishment
Shenzhen Topband Supply Chain Services Co.,
Shenzhen Shenzhen Sales 100.00% Establishment
Ltd.
Shenzhen Topband Investment Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
Shenzhen Spark IOT Technology Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
Shenzhen Tulu Innovation Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
Shenzhen Senxuan Technology Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
Topband (Qingdao) Intelligent Control Co., Ltd. Qingdao Qingdao Sales 100.00% Establishment
Shenzhen Tengyi Industrial Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
Merger of
Taixing Ninghui Lithium Battery Co., Ltd. Taixing Taixing Manufacturing 90.48% enterprises under
different control
Shenzhen Topband Automotive Electronics Co.,
Shenzhen Qingdao Sales 100.00% Establishment
Ltd.
Q.B.PTE.LTD Singapore Singapore Sales 100.00% Establishment
TOPBAND MEXICO,S.DE R.L.DE C.V. Mexico Mexico Sales 100.00% Establishment
Hong Hong
Tulu Innovation (Hong Kong) Limited Sales 100.00% Establishment
Kong Kong
TOPBAND SMART EUROPE COMPANY
Romania Romania Sales 100.00% Establishment
LIMITED S.R.L.
Huizhou Yako Automation Technology Co., Ltd. Shenzhen Shenzhen Manufacturing 71.54% Establishment
Shenzhen Zhongli Consulting Co., Ltd. Shenzhen Qingdao Sales 100.00% Establishment
the United the United
TUNNU INNOVATION,INC Sales 100.00% Establishment
States States
Explanation of the shareholding ratio in the subsidiary being different from the voting rights ratio:
Basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of
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the voting rights but not controlling the investee:
For important structured entities included in the consolidation scope, the basis for control:
Basis for determining whether a company is an agent or a principal:
Other description:
(2) Important non-wholly-owned subsidiaries
Unit: Yuan
Profits and losses Dividends declared and
Shareholding ratio of attributable to minority distributed to minority Ending balance of
Name of subsidiary
minority shareholders shareholders during the shareholders during the minority equity
current period current period
Shenzhen YAKO
Automation Technology 28.46% 8,100,059.05 5,197,835.08 81,331,985.33
Co., Ltd.
Explanation of the shareholding ratio of minority shareholder in subsidiary shareholder being different from the
voting rights ratio:
Other description:
(3) Major financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance Beginning balance
Name of
Current Non-current Total Current Non-current Total Current Non-current Total Current Non-current Total
subsidiary
assets assets assets liabilities liabilities liabilities assets assets assets liabilities liabilities liabilities
Shenzhen 308,879,580.82 61,169,539.31 370,049,120.13 74,267,013.30 9,059,144.56 83,326,157.86 305,948,794.76 10,842,526.28 316,791,321.04 50,893,109.13 50,893,109.13
YAKO
Automation
Technology
Co., Ltd.
Unit: Yuan
Amount incurred in current period Amount incurred in prior period
Cash flow Cash flow
Name of Total Total
Operating from Operating from
subsidiary Net profit comprehensiv Net profit comprehensiv
income operating income operating
e income e income
activities activities
Shenzhen 296,759,371.5 29,933,264.9 29,933,264.92 -14,283,982.6 257,988,191.4 43,475,918.2 43,475,918.21 62,625,702.5
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YAKO 9 2 9 3 1 4
Automatio
n
Technology
Co., Ltd.
Other description:
(4) Significant restrictions on the use of enterprise group assets and the liquidation of enterprise group
debts
□ applicable √ not applicable
(5) Financial support or other support provided to structured entities included in the scope of the
consolidated financial statements
Other description:
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
(1) Changes of the share of owner's equity in a subsidiary:
□ applicable √ not applicable
(2) The impact of the transaction on the minority shareholders' equity and the owners' equity attributable
to the parent company:
□ applicable √ not applicable
3. Interests in joint venture arrangements or associated enterprises
(1) Important joint ventures or associated enterprises
Explanation of the shareholding ratio in the joint venture or associated enterprise being different from the voting
rights ratio:
Basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of
the voting rights but having no significant influence:
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(2) Major financial information of important joint ventures
□ applicable √ not applicable
(3) Major financial information of important associated enterprises
□ applicable √ not applicable
(4) Summarized financial information of unimportant joint ventures and associated enterprises
Unit: Yuan
Ending balance/Amount incurred in the Beginning balance/Amount incurred in the
current period previous period
Joint Venture: -- --
Sum of the following items calculated
-- --
according to the shareholding ratio
Associated enterprises: -- --
Total book value of investment 29,002,528.13 6,502,528.13
Sum of the following items calculated
-- --
according to the shareholding ratio
- Net profit -2,883,400.31 -360,946.80
- Total comprehensive income -2,883,400.31 -360,946.80
Other description:
(5) Statement that there is a material limitation on the ability of the joint venture or associated enterprise to
transfer funds to the Company
□ applicable √ not applicable
(6) Excess losses incurred by the joint venture or an associated enterprise
□ applicable √ not applicable
(7) Unconfirmed commitments related to the investment of joint ventures
□ applicable √ not applicable
(8) Contingent liabilities related to the investment of joint ventures or associated enterprises
□ applicable √ not applicable
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3. Important joint operation
□ applicable √ not applicable
4. 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, debt investment, borrowings,
accounts receivable, accounts payable, convertible bonds, etc. For details of each financial instrument, please refer
to the relevant items in Note VI. The risks associated with these financial instruments and the risk management
policies adopted by the Company to mitigate these risks are described below. 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
variable are made in isolation. The main risks arising from the group's financial instruments include the credit risk,
liquidity risk and market risk.
(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
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Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations. The company's exposure to
foreign exchange risks is mainly related to US dollars and Hong Kong dollars. Except for the company and its
subsidiary, Topband (HK) Co., Limited, which purchases and sells some materials and products in US dollars,
euros and Hong Kong dollars, TOPBAND INDIA PRIVATE LIMITED, the subsidiary, uses Indian rupees,
Topband (Vietnam) Co., Ltd. and TOPBAND SMART DONGNAI (VIETNAM) Co., Ltd., the grandson
companies, use Vietnamese dong, and Topband Germany GmbH, the grandson company, uses euros; TOPBAND
JAPAN Co.,Ltd., the grandson company, uses Japanese yen, Q.B.PTE. LTD, the grandson company, uses
Singapore dollars, and TOBAND MEXICO, S.DE R.L.DE C.V., the grandson company, uses Mexican pesos;
TOBAND SMART EUROPE COMPANY LIMITED S.R.L., the grandson company, uses Romanian Lei, Tunnu
Innovation HK Limited, the grandson company, uses Hong Kong dollars, and TUNNU INNOVATION, INC., the
grandson company, uses US dollars; other major business activities of Topband are settled in RMB.As of
December 31, 2021, the assets and liabilities of the company are all in RMB, except for those described in VI (56)
“Foreign currency monetary items” that the assets and liabilities are in U.S. dollars, Hong Kong dollars, euro,
Vietnamese dong and Indian rupees. The foreign exchange risks arising from the assets and liabilities of such
foreign currency balances may have an impact on the Company's operating results.
The Company pays close attention to the impact of exchange rate fluctuations on the Company's foreign
exchange risks. The Company currently does not take any measures to avoid foreign exchange risks.
(2) Other price risks
Investments held by the Company and classified as tradable financial assets are measured at fair value on the
balance sheet date. Therefore, the Company is exposed to the risk of changes in the securities market.
2. Credit risk
On December 31, 2021, the maximum credit risk exposure causing the company's financial losses is mainly
incurred from the other party's failure to fulfill obligations, which leads the company to financial asset losses, and
financial guarantee undertaken by the company, including confirmed carrying amounts of financial assets in
consolidated balance sheets; the carrying value only reflects risk exposure of financial instruments measured at
fair value rather than the maximum risk exposure, that varies with the fair value in the future.
In order to reduce credit risks, the Company has set up special positions responsible for determining credit
limits, conducting credit approval, and implementing other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition, the Company reviews the recovery of each individual
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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.
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 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.
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 included in the current 214,999,336.74 214,999,336.74
profits and losses
(1) Debt instrument investment 4,000,000.00 4,000,000.00
(2) Equity instrument investment 210,999,336.74 210,999,336.74
(II) Receivables financing
1. Financial assets measured at fair value and
whose changes are included in other 36,902,507.85 36,902,507.85
comprehensive income
(1) Bank acceptance bills 26,520,757.05 26,520,757.05
(2) Accounts receivable 10,381,750.80 10,381,750.80
251,901,844.59 251,901,844.59
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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
□ applicable √ not applicable
3. Continuous and non-continuous second-level fair value measurement items, valuation techniques
adopted and qualitative and quantitative information of important parameters
□ applicable √ not applicable
4. Continuous and non-continuous third-level fair value measurement items, valuation techniques adopted
and qualitative and quantitative information of important parameters
□ applicable √ not applicable
5. Continuous third-level fair value measurement items, adjustment information between beginning and
ending book value and sensitivity analysis of unobservable parameters
□ applicable √ not applicable
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
□ applicable √ not applicable
7. Technical changes in valuation during the current period and the reasons for such changes
□ applicable √ not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
□ applicable √ not applicable
9. Others
□ applicable √ not applicable
XII. Related Parties and Related Transactions
1. Information on the parent company of the Enterprise
Name of parent Registered Nature of Registered The parent company's shareholding Proportion of the parent company's
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company place business capital ratio in the Enterprise voting rights in the Enterprise
Wu Yongqiang Shenzhen 16.87% 16.87%
Description of the parent company
The ultimate controller of the enterprise is
Other description:
2. Information on the Company's subsidiaries
For the subsidiaries the company, please refer to notes.
3. Information on the joint ventures and associated enterprises of the Enterprise
□ applicable √ not applicable
4. Other related parties
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 Dynanonic Co., Ltd. A company whose shares are held by the Company
A subsidiary of the company whose shares are held by the
Foshan Dynanonic Technology Co., Ltd.
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
Chengdu Senwei 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
Shanghai Yidong Power 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
Other description:
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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 transaction Amount incurred Approved transaction Is the transaction limit Amount incurred in
Related party
content in current period limit exceeded prior period
Shenzhen
Jizhiguang Raw materials 18,415,795.03 40,000,000.00 No 15,939,982.64
Electronics Co., Ltd.
Foshan Dynanonic
Technology Co., Raw materials 49,756,548.15 No 13,268,725.49
Ltd.
Shenzhen
Raw materials 1,216,814.15 No
Dynanonic 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
Goods on hand 32,048,669.89 13,158,867.26
Co., Ltd.
Related transactions involving the purchase and sale of goods and the provision and acceptance of services
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
□ applicable √ not applicable
(3) Related lease
□ applicable √ not applicable
(4) Related guarantee
□ applicable √ not applicable
(5) Related parties' loans at call
□ applicable √ not applicable
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(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
10,758,300.00 10,583,700.00
personnel
(8) Other related transactions
□ applicable √ not applicable
6. Payables due to related parties
(1) Item receivable
Unit: Yuan
Ending balance Beginning balance
Project name Related party
Book balance Provision for bad debts Book balance Provision for bad debts
Accounts Shenzhen ORVIBO Technology
10,396,665.72 322,296.64 11,456,976.61 355,166.27
receivable Co., Ltd.
(2) Item payable
Unit: Yuan
Book balance at the end of the Book balance at the beginning
Project name Related party
period of the period
Shenzhen Jizhiguang
Accounts payable 3,099,592.01 3,600,589.88
Electronics Co., Ltd.
Foshan Dynanonic Technology
Accounts payable 2,209,999.98 4,573,368.10
Co., Ltd.
Accounts payable Shenzhen Dynanonic Co., Ltd. 161,905.76
Shenzhen Jizhiguang
Notes payable 2,376,908.03 1,560,000.00
Electronics Co., Ltd.
Foshan Dynanonic Technology
Notes payable 30,562,779.66 1,283,800.00
Co., Ltd.
Notes payable Shenzhen Dynanonic Co., Ltd. 1,374,999.99
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7. Commitment of related parties
□ applicable √ not applicable
8. Others
XIII. Share-based payment
1. General situation of share-based payment
√ applicable □ not applicable
Unit: Yuan
Total amount of equity instruments granted by the Company during the
33,544,320.00
current period
Total amount of equity instruments exercised by the Company during the
44,494,920.00
current period
Total amount of the Company's equity instruments that expired during the
80,500.00
current period
The Company granted 42.8870 million stock options to
684 incentive recipients on November 27, 2018.The
performance evaluation and exercise of the Company
and the individuals of the incentive objects are
conducted by the year, and the evaluation is conducted
once each fiscal year. The achievement of the
performance evaluation target is taken as the exercise
condition of the incentive objects. This plan is valid for a
maximum period of 48 months from the date of
authorization of stock options to the date on which all
options are exercised or cancelled. After the expiration
of 12 months from the authorization date of the
The range of the exercise price of the Company's stock options outstanding
incentive plan of the current period, the incentive objects
at the end of the period and the remaining term of the contract
shall exercise the stock options by stages according to
the exercise proportion of 30%, 30% and 40% within the
vesting date. The grant price of the stock options that
have not been unlocked at the end of the period is RMB
3.60.On November 2, 2021, the company granted
restricted shares to incentive objects at a grant price of
7.23 yuan per share, including 1,224 registered objects
and 33,544,320 restricted shares in total. Topband
carried out the performance appraisal for companies and
the individual incentive objects once in each fiscal year,
taking the performance appraisal target as the unlocking
condition for restricted stocks. This incentive plan was
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valid from the grant date of restricted shares to the date
when all restricted shares were unlocked or canceled,
with the maximum time of 48 months. After 12 months
from the grant date of the restricted shares granted this
time, the incentive objects that meet the unlocking
conditions could be unlocked at the exercise ratio of
30%, 30% and 40% within the unlocking day.
Other description:
Description of share-based payment:
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 5, 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
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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. Cheng Xueqing and
Lin Qiao, the incentive objects, resigned from the company due to personal reasons, and their 80,500 stock
options that have been granted but not yet exercised would not be exercised and would be canceled by the
company. On August 6, 2021, 10,950,600 stock options involving 567 incentive objects that meet the exercising
conditions had been exercised.
2. Restricted stock in 2021
On October 13, 2021, the company held the 14th meeting of the seventh session of the board of directors, and
reviewed and approved the Proposal on the < Company's Restricted Stock Incentive Plan in 2021 (Draft)> and its
Summary, Proposal on the < Appraisal Management Measures for the Implementation of the Restricted Stock
Incentive Plan in 2021> and Proposal on Requesting the General Meeting of Shareholders to Authorize the Board
of Directors to Handle Matters Related to the Company's Restricted Stock Incentive Plan in 2021, agreeing that
the company would grant 34 million restricted shares to 1,250 incentive objects.
On November 2, 2021, the company held the 16th (Extraordinary) meeting of the seventh session of the
board of directors and the 13th (Extraordinary) meeting of the seventh session of the board of supervisors, to
review and approve the Proposal on Adjusting the Number of Granted Options and List of Incentive Objects in
Restricted Stock Incentive Plan in 2021.In view of the resignation of the incentive objects, Ou Li, Wang Cheng,
Shen Zhiwen and Tian Conghui, which voluntarily gave up the subscription of the restricted shares granted due to
personal reasons, incentive objects were adjusted from 1,250 to 1,246, and the total restricted shares granted for
the first time was changed from 34 million to 33,951,000.
On December 7, 2021, the company held the 17th (extraordinary) meeting of the seventh session of the board
of directors, to review and approve the Proposal on Adjusting the Number of Granted Options and List of
Incentive Objects in Restricted Stock Incentive Plan in 2021.The board of directors believed that after determining
November 2, 2021 as the grant date of the restricted stock incentive plan in 2021, in the process of capital
payment before the share registration, 22 incentive objects determined in this incentive plan, including Li Xiang,
Yu Dingguo and Lu Yuanshan, voluntarily gave up the subscription of all the restricted stocks granted due to
personal reasons, and 10 incentive objects, including Ao Xinmeng, Wang Cao, and Liu Xiaoshi, voluntarily gave
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up the subscription of some of the restricted stocks granted to them due to personal reasons. With the
authorization of the second extraordinary general meeting of shareholders, the board of directors adjusted the
grant objects and grant quantities of this incentive plan. After adjustment, the number of incentive objects under
the 2021 Restricted Stock Incentive Plan decreased from 1,246 to 1,224, and the number of restricted shares
granted decreased from 33.951 million to 33.54432 million.
2. Equity-settled share-based payments
√ applicable □ not applicable
Unit: Yuan
Method for determining the fair value of the equity instrument on the Fair value of equity instruments = (market price on grant date -
grant date grant price) * number of shares
Estimation shall be based on the latest available changes on
Basis for determining the number of exercisable equity instruments
vesting employee number and other subsequent information.
Reasons for the significant difference between the estimates of the
None
current period and that of the previous period
Accumulated amount of equity-settled share-based payments
110,403,979.07
included in capital reserves
Total amount of expenses recognized by equity-settled share-based
31,033,339.36
payments in the current period
Other description:
3. Cash-settled share-based payments
□ applicable √ not applicable
4. Modification and termination of share-based payments
□ applicable √ not applicable
5. Others
XIV. Commitments and contingencies
1. Important commitments
Important commitments that existed on the balance sheet date
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2. Contingencies
(1) Significant contingencies in the balance sheet
(2) If the company has no important contingencies that need to be disclosed, they should also be explained
No signification contingencies need to be disclosed by the Company.
3. Other
XV. Events after the balance sheet date
1. Important non-adjustment matters
□ applicable √ not applicable
2. Profit distribution
□ applicable √ not applicable
3. Sales return
□ applicable √ not applicable
4. Description of other events after the balance sheet date
□ applicable √ not applicable
XVI. Other important matters
1. Correction of early accounting errors
(1) Retrospective restatement method
Affected report item name
Cumulative
Contents of accounting error correction Handling procedure for each comparison
number affected
period
(1) Capitalization adjustment of research and The proposal was Other current assets 2,121,222.39
development expenses deliberated on the Intangible assets -30,514,971.23
R&D projects of Yakotec are divided into research stage 21st meeting of the Development expenditure -5,656,596.57
and development stage. Projects meeting R&D 7th session of the
board of directors Total assets -34,050,345.41
capitalization conditions were capitalized in previous
years. We made retroactive adjustments and expensed and the 17th Capital reserves 12,636,853.09
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the projects capitalized in the previous period in this meeting of the 7th Undistributed profit -19,061,969.80
audit. session of the board
Minority equity -27,625,228.70
(2) Adjustment of share-based payment of supervisors.
Management expenses 2,761,292.86
Meanwhile, the
Yakotec granted equity to key employees through the
audit institution Research and
shareholding platform. However, it was not recognized 3,924,376.58
issued a special development expenses
as share-based payment, and the corresponding expenses
explanation, and the Operating profit
were not accrued. According to the definition in the -6,685,669.44
independent
Accounting Standards for Business Enterprises No.11 - Total profits -6,685,669.44
directors expressed
Share-based Payment, share-based payment refers to the
their opinions. Income tax expenses -2,067,266.44
transaction in which an enterprise grants equity
instruments or undertakes liabilities determined on the Net profit -4,618,403.00
basis of equity instruments in order to obtain services Net profit attributable to
-1,355,690.40
from employees and other parties. Therefore, the equity the parent company
granted to employees by Yakotec was retroactively
recognized as share-based payment, and the
Profits and losses of
corresponding expenses were adjusted and accrued. -3,262,712.60
minority shareholders
Corrections were made with the retroactive restatement
method.
(2) Prospective application method
□ applicable √ not applicable
2. Debt restructuring
□ applicable √ not applicable
3. Asset replacement
(1) Non-monetary asset exchange
□ applicable √ not applicable
(2) Other asset replacement
□ applicable √ not applicable
4. Annuity plan
□ applicable √ not applicable
5. Termination of operation
□ applicable √ not applicable
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6. Division information
1. Determination basis and accounting policy of report segment
□ applicable √ not applicable
(2) Financial information of reportable segments
□ applicable √ not applicable
(3) If the company has no reportable segments, or fails to disclose the total assets and liabilities of each
segment, the reasons shall be given.
□ applicable √ not applicable
(4) Other descriptions
□ applicable √ not applicable
7. Other important transactions and matters that have an impact on investors' decisions
□ applicable √ not applicable
8. Others
□ 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
Category Ending balance Beginning balance
Book balance Provision for bad debts Book Book balance Provision for bad debts Book
value value
Amount Proportion Amount Proportion of Amount Proportion Amount Proportion of
provision provision
Accounts
231,814,138. 69,870,1
receivable with 231,814,138.25 15.06% 70,467,909.49 7.62% 597,758.70 99.81%
25 50.79
provision for bad
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debts by single
item
Including:
1. Receivables
with significant
individual
231,795,120. 69,868,9
amount and 231,795,120.17 15.06% 69,868,984.66 7.56%
17 84.66
individual
provision for bad
debts
Accounts
receivable with
insignificant
single amount 19,018.08 0.00% 19,018.08 598,924.83 0.06% 597,758.70 99.81% 1,166.13
but single
provision made
for bad debts
Accounts
receivable with
1,265,107,11 826,395,
provision for bad 1,306,965,149.94 84.94% 41,858,033.85 3.20% 854,095,677.91 92.38% 27,700,353.00 3.24%
6.09 324.91
debts by
portfolio
Including:
Accounts
receivable with
provision for bad
1,265,107,11 826,395,
debts by 1,306,965,149.94 84.94% 41,858,033.85 3.20% 854,095,677.91 92.38% 27,700,353.00 3.24%
6.09 324.91
combination
(aging analysis
method)
Total 1,496,921,25 896,265,
1,538,779,288.19 100.00% 41,858,033.85 2.72% 924,563,587.40 100.00% 28,298,111.70 3.06%
4.34 475.70
Single provision for bad debts:
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision Reasons for provision
1. Receivables with
significant individual amount
231,795,120.17
and individual provision for
bad debts
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Accounts receivable with
insignificant single amount
19,018.08
but single provision made for
bad debts
Total 231,814,138.25 -- --
Single provision for bad debts:
Provision for bad debts by portfolio:
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivable with provision
for bad debts by combination (aging 1,306,965,149.94 41,858,033.85 3.20%
analysis method)
Total 1,306,965,149.94 41,858,033.85 --
Description of the basis for determining the portfolio:
Provision for bad debts by portfolio:
□ applicable √ not applicable
Description of the basis for determining the portfolio:
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
Disclosure by aging
Unit: Yuan
Aging Book balance
Less than 1 year (including 1 year) 1,532,571,697.48
1 to 2 years 1,644,720.17
2 to 3 years 3,080,499.38
Above 3 years 1,482,371.16
3 to 4 years 1,481,027.31
4 to 5 years 1,343.85
Total 1,538,779,288.19
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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 Other
reversal
Provision for bad
28,298,111.70 15,465,253.39 1,905,331.24 41,858,033.85
debts
Total 28,298,111.70 15,465,253.39 1,905,331.24 41,858,033.85
Of which the amount of provision for bad debts reversed or recovered in current period is significant:
(3) Accounts receivable actually written off in current period
Unit: Yuan
Items Write-off amount
Accounts receivable actually written off 1,905,331.24
Of which the significant write-offs of accounts receivable:
Description of accounts receivable written off:
(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
No.1 531,632,597.55 34.55% 16,480,610.51
No.2 166,233,853.47 10.80%
No.3 99,449,573.86 6.46% 3,082,936.79
No.4 44,619,403.18 2.90% 1,383,201.50
No.5 32,095,302.19 2.09% 994,954.37
Total 874,030,730.25 56.80% --
(5) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be
involved
Other description:
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(6) Accounts receivable derecognized due to transfer of financial assets
2. Other receivables
Unit: Yuan
Items Ending balance Beginning balance
Other receivables 141,619,648.22 41,159,647.12
Total 141,619,648.22 41,159,647.12
(1) Interest receivable
1) Classification of interest receivable
□ applicable √ not applicable
2) Significant overdue interest
□ applicable √ not applicable
3) Provision for bad debts
□ applicable √ not applicable
(2) Dividends receivable
1) Classification of interest receivable
□ applicable √ not applicable
2) Important dividends receivable aged over 1 year
□ applicable √ not applicable
3) Provision for bad debts
□ applicable √ not applicable
Other description:
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(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
Receivables and payables 131,639,091.99 13,021,127.03
Margin, deposit 5,474,993.31 4,493,457.54
Employee loans 6,888,020.46 4,589,352.52
Export rebate amount 20,264,087.02
Other 7,693.46 62,346.03
Total 144,009,799.22 42,430,370.14
2) Provision for bad debts
Unit: Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss for the Expected credit loss for the
Provision for bad debts Expected credit loss Total
entire duration (no credit entire duration (credit
in the next 12 months
impairment) impairment occurred)
Balance as of January 1,
1,270,723.02
2021
Balance as of January 1,
—— —— —— ——
2021 in the current period
Accrued in current period 1,120,427.98
Cancel after verification
1,000.00
in the current period
Balance as of December
2,390,151.00
31, 2021
Changes in book balance with significant changes in loss reserves in current period
□ applicable √ not applicable
Disclosure by aging
Unit: Yuan
Aging Book balance
Less than 1 year (including 1 year) 138,220,430.47
1 to 2 years 1,375,978.09
2 to 3 years 3,172,076.12
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Above 3 years 1,241,314.54
3 to 4 years 94,902.22
4 to 5 years 1,110,000.00
Above 5 years 36,412.32
Total 144,009,799.22
3) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
Beginning Amount changed in current period
Category Ending balance
balance Provision Recover or reversal Write-off Other
Provision for bad
1,270,723.02 1,120,427.98 1,000.00 2,390,151.00
debts
Total 1,270,723.02 1,120,427.98 1,000.00 2,390,151.00
Of which the amount of provision for bad debts reversed or recovered in current period is significant:
□ applicable √ not applicable
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
Proportion to total Ending balance of
Name of Entity Nature of payment Ending balance Aging ending balances of provision for bad
other receivables debts
No.1 Intercourse funds 114,130,751.36 Within 1 year 79.25%
No.2 Intercourse funds 14,633,556.05 Within 1 year 10.16%
No.3 Guarantee deposit 1,520,178.00 2~3 years 1.06% 456,053.40
No.4 Intercourse funds 1,303,519.10 Within 1 year 0.91%
No.5 Guarantee deposit 1,000,000.00 4-5 years 0.69% 800,000.00
Total -- 132,588,004.51 -- 92.07% 1,256,053.40
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6) Receivables involving government subsidies
Unit: Yuan
Name of government Estimated time, amount
Name of Entity Ending balance Ending aging
subsidy project and basis for collection
7) Other receivables derecognized due to transfer of financial assets
Not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
Other descriptions: None
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
2,941,581,406.04 2,941,581,406.04 2,194,431,703.81 2,194,431,703.81
subsidiaries
Investment in
associated
18,408,714.90 12,433,655.05 5,975,059.85 18,936,183.18 12,433,655.05 6,502,528.13
enterprises and
joint ventures
Total 2,959,990,120.94 12,433,655.05 2,947,556,465.89 2,213,367,886.99 12,433,655.05 2,200,934,231.94
(1) Investment in subsidiaries
Unit: Yuan
Investee Beginning Changes in increase/decrease in current period Ending balance Ending
balance (book (book value) balance of
Additional Decrease Provision Other
value) investment in for provision
investment impairment for
impairment
Shenzhen Topband Software 17,044,333.03 1,655,117.41 18,699,450.44
Technology Co., Ltd.
Shenzhen Topband Battery Co., Ltd. 4,417,413.65 1,546,395.25 5,963,808.90
Shenzhen Topband Automation 24,416,539.46 10,218,201.67 34,634,741.13
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Technology Co., Ltd.
Chongqing Topband Industrial Co., 210,135,072.74 195,673.13 210,330,745.87
Ltd.
Topband (Hong Kong) Co., Ltd. 249,076,900.00 115,434,600.00 364,511,500.00
Huizhou Topband Electrical 633,267,784.97 374,013,935.38 1,007,281,720.35
Technology Co., Ltd.
Ningbo Topband Intelligent Control 350,044,696.18 169,824,138.89 519,868,835.07
Co., Ltd.
Shenzhen Allied Control System Co., 120,984,983.52 1,160,561.29 122,145,544.81
Ltd.
Shenzhen Meanstone Intelligent 3,000,000.00 7,000,000.00 10,000,000.00
Technology Co., Ltd.
TOPBANDINDIAPRIVATELIMITED 195,026,748.97 195,026,748.97
Shenzhen YAKO Automation 350,014,659.96 350,014,659.96
Technology Co., Ltd.
Shenzhen Topband Investment Co., 30,002,571.33 30,089,631.29 60,092,202.62
Ltd.
Shenzhen Topband Supply Chain 5,000,000.00 5,000,000.00
Services Co., Ltd.
Shenzhen Senxuan Technology Co., 2,000,000.00 6,011,447.92 8,011,447.92
Ltd.
Topband (Qingdao) Intelligent Control 30,000,000.00 30,000,000.00
Co., Ltd.
Total 2,194,431,703.81 747,149,702.23 2,941,581,406.04
(2) Investment in associated enterprises and joint ventures
Unit: Yuan
Changes in increase/decrease in current period
Declarati
Profit and Ending
Beginning Adjustmen on of Ending
Addition Decrease loss on Other Provision balance of
Investment balance t to other distributi balance
al in investment change for Othe provision
unit (book comprehen on for (book
investme investme recognized s in impairme r for
value) sive cash value)
nt nt under equity equity nt impairment
income dividends
method
or profits
I. Joint venture
II. Associates enterprises
Shenzhen 6,502,528. -527,468. 5,975,059.
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Daka 13 28 85
Optoelectroni
cs Co., Ltd.
Shenzhen
Yuchengxin
12,433,655.
Power
05
Technology
Co., Ltd.
6,502,528. -527,468. 5,975,059. 12,433,655.
Subtotal
13 28 85 05
6,502,528. -527,468. 5,975,059. 12,433,655.
Total
13 28 85 05
(3) Other description
None
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 4,371,958,034.40 3,624,790,477.82 3,260,338,225.11 2,683,111,915.01
Other business 192,086,856.35 167,351,318.23 122,029,795.27 111,936,235.09
Total 4,564,044,890.75 3,792,141,796.05 3,382,368,020.38 2,795,048,150.10
Information related to performance obligations:
Not applicable
Information related to the transaction price allocated to the remaining performance obligations:
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 0.00 yuan, and 0.00 yuan is expected to be
recognized within one year.
Other description:
5. Return on investment
Unit: Yuan
Items Amount incurred in current period Amount incurred in prior period
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Long-term equity investment income
14,053,405.97 4,963,933.51
accounted by cost method
Long-term equity investment revenue
-527,468.28 -360,946.80
accounted by equity method
Investment revenue from disposal of tradable
38,226,720.08 230,366,485.41
financial assets
Forward foreign exchange settlement profit
9,569,000.00 22,970,000.00
and loss
Investment revenue from financial products 7,977,806.26 2,511,036.11
Total 69,299,464.03 260,450,508.23
6. Others
XVIII. Supplementary 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
-789,236.29
assets
Government subsidies included in current
profits and losses (except those that are
closely related to the normal business of the
Company, conform to national policies and 16,456,682.22
regulations and are continuously enjoyed in a
fixed or quantitative manner according to
certain standards)
Gains and losses due to fair value changes
arising from the holding of tradable financial
assets and liabilities, as well as the
investment income from the disposal of
133,466,036.23
tradable financial assets and liabilities and
available-for-sale financial assets, except for
the effective hedging business related to the
normal business of the Company
Other non-operating income and expenses
-1,787,714.37
other than those mentioned above
Other profit and loss items that meet the 9,914,763.48
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definition of non-recurring profit and loss
Minus: amount affected by income tax 23,726,354.32
Impact amount of minority shareholders'
608,113.65
equity
Total 132,926,063.30 --
Details of other profit and loss items that conform to the definition of non-recurring profits and losses:
□ applicable √ not applicable
None.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profits and Losses
as recurring profit and loss items
□ applicable √ not applicable
2. Return on equity and earnings per share
Earnings per share
Profit in the reporting period Weighted average return on net assets Basic earnings per share Diluted earnings per
(yuan / share) share (yuan / share)
Net income attributable to the
common shareholders of the 13.11% 0.47 0.47
Company
Net profit attributable to the
common shareholders of the
10.03% 0.36 0.36
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
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(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. Other
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